ML19289C213
| ML19289C213 | |
| Person / Time | |
|---|---|
| Site: | 07000008 |
| Issue date: | 11/22/1978 |
| From: | Toy H Battelle Memorial Institute, COLUMBUS LABORATORIES |
| To: | Kratzke R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| NUDOCS 7812140372 | |
| Download: ML19289C213 (4) | |
Text
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November 22, 1978
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MOV2 71978 Mr. Robert Kratzke y, L nAs bandr..
Fuel Reprocessing and Recycle Branch Office of Nuclear Material Safeguards g
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U.S. Nuclear Regulatory Commission f-(g, Washington, D.C.
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Dear Mr. Kratzke:
Docket 70-8; Supplement to License No. SNM-7 This will follow up our telephone conversation of November 21, 1978, regarding the Battelle-Columbus Financial Plan for future decontamination of our nuclear facilities.
Enclosed for your review is Financial Plan for Decommissioning of the BCL Contaminated Facilities, This plan has also been submitted to the DOE Chicago operations Office in cont.ection with our nuclear activities corducted under DOE-BCL Contract W-7405-ENG-92 We trust this financial plan will satisfy the NRC licensing requirements for ele decontamination and decommissioning of the BCL licensed facilities.
Your early evaluation and concurrence with our plan is appreciated.
Very truly yours, j
Harley L. Toy NRC Licensing Coordinator HLT:lba y th Tran r mq pwm k"u J Q y[jlhIf,3 I!
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Enc. (1) g cc:
Mr. Jim Buchar
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Contracts Management Office U.S. Department of Energy Chicago Operations Office 9800 South Cass Avenue e M." ',
A ~ ~ ~ o Argonne, Illinois 60439 7812140 3'72
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ATTACHMENT A
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FINANCIAL PLAN FOR DECOMMISSIONING OF Tile BCL CONTAMINATED FACILITIES The basic premise of the BCL Financial Plan is that programs utilizing nuclear facilities cause contamination and, therefore, should bear the cost of decontamination in an equitable manner. The liability for decontaminatien, in the event nuclear facilities require decontamina-tion, should be assumed by current users through the creation of a special reserve to be funded by establishing a burden rate based on total cost.
An escrow account, managed by the Battelle Corporate Office, will be established to facilitate accumulation of principal and earnings and to assure that funds accumulated for this purpose will be available when needed. Funds will be invested in low-risk, moderately liquid securities.
An initial burden rate of 6% has been calculated based on the following assumptions (see Addendum A for details of calculations):
Earnings of 6% per year to be credited to the fund.
e An inflation rate of 6% per year related to projections e
of research volume and decontamination costs.
Projections of real growth in volume of 5% for the e
first 10 yeats and 2% thereafter.
Research volume'(excluding fee) will be $1,900,000 in 1978.
A time frame of 20 years for accumulation of the fund.
. Estimated decontamination cost (1978 dollars) of
$3,500,000.
Calculated burden rate is to be applied to total cost e
or its equivalent.
The validity of the above assumptions will be reviewed at least annually with appropriate adjustments made to the burden rate as required.
Detailed working papers supporting c,ompucations of the burden rate will be maintained on file for audit and review. The papers will be retained as long as the fund remains in existence to support our computations of the required burden rate.
Establishment of this fund provides an orderly mechanism for accumulation of funds to cover an eventual liability.
It does not reduce
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the total liability of any party except to the extent of the assets available in the fund.
IntheeventexcessfundsareavaElableatthetimeofdecon-tamination, that portion contributed by the Government will be returned.
The Covernment share of any excess contributions will be determined in proportion to the initial contributions and timing of receipts.
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ADDENDUM A t
ANALYSIS OF REQUIRED FUNDING RATE FOR NUCLEAR DECONTAMINATION RESERVE
($s in thousands)-
Projected Projected Income Research Research 6%
+ 6%
Year Volume
- Volume **
Burden Earnings 1978
$ 1,900 1979
$ 1,000+
$ 1,060 65
$ 195 1980 2,095 2,355 140 400 1981 2,200 2,620 155 415 1982 2,310 2,915 175 445 1983 2,425 3,245 195 465 1984 2,545 3,610 215 485 1985 2,675 4,020 240 510 1986 2,805 4,475 270 545 1987 2,950 4,980 300 570 1988 3,095 5,540 330 590 610 1989 3,155 5,990 360 1990 3,220 6,480 390 620 1991 3,285 7,005 420 630 1992 3,350 7,575 455 645 1993 3,415 8,190 490 655 1994 3,485 8,855 530 670 1995 3,555 9,575 575 685 1996 3,625 10,350 620 695 1997 3,700 11,190 670 710 1998 3,775 12,100 725 725 Total
$58,665
$122,130
,$7,320
$11,265++
50
= 5.977.
Fund at 6%
Rate = 58 65
- Constant (1978) dollars.
- Current (inflated) dollars assuming 6% inflation.
+ Assumes only 50% of projects will have burden applied during 1979.
++ Future need (current dollars) = $3,500 (1.06)20 = $11,225.