ML19345B909
| ML19345B909 | |
| Person / Time | |
|---|---|
| Site: | 07000008 |
| Issue date: | 10/01/1980 |
| From: | Toy H Battelle Memorial Institute, COLUMBUS LABORATORIES |
| To: | Rouse L NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| 17515, NUDOCS 8012020715 | |
| Download: ML19345B909 (8) | |
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Docket 70-8;. Financial 'Decomissioning Plan for 3
Battelle's Columbus. Laboratories m
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f This le O' is to advise you of the specific terms and conditions for E 1117 c;h:ico of the financial plan for the eventual decom.nissionidg
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Arestricted usi of the Battelle Hot Laboratory. (JN-1).
This
-.~5 noti #icat'ari is nade in response to the request outlined in ydur let[.gr U-c' JZe 29,1979.
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e neie ter. s and conditions are based upon our previous discussions with i
yout Offi:e c'oncerning implementation of the plan.
The plan has been U
appe: red for fur. ding by the cognizant Department'of' Energy (DOE) and tne epartment nf Defense'(09D) contracting off.icers, and the terms
-al.sc reflect their input.
H ine asic financial plan, as agreed to with DOE and D00, was disclosed by ;- i3r correspondence uith the NP.C.
The terms and conditions stated
. n ttis letter:will also apely to'the plan which we understand will be -
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f incc acrate'd.by reference in' cur ?icense.
cattella. ill place all. anounts collected in accordance with the Plan
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The' trustee will be independent of Battelle'ar.d of the uscrr.
W 3ri caying funds into.the' trust., The-trus' tee will be a national-
. ban er : trust decartment with at least $500,000,000 in assets. -Battelle-nay,; notaver, retain the right to direct tne trustee's investments in i
L crde t tc reduce -trustf adainistrati.on tfees, but may not direct invest:wnts
'fm- #.s-oso benefit.
Trust funds may:not be diverted from their'intendo
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l' M t bf'dsccamissioning.
The~ trustee will, of course, pay-all tru;t
~ a F 'ris;r.: tion expenses'and taxes,? including any directly incurred by 4
JBatte'le solely because.of the trust's' existence.
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9 9k Mr. Lee Rouse 9
U.S.1.:clev Regulartory Cc cission 2
October 1,1980 Trus; funds ray only be used for ultimate decommissioning in accordance with - decontamination and decomiissioning plan approved by the NRC.
The :ast funds are not to Se used for routine decontanination which is an c_'r :t to normal operations. All expenditures of trust funds are subji:. :o IRC audit and re iew, and Battelle and the trustee are to re ta
- plete records o# trust activities for that p.;rpose.
Tne./:.<cse o' this license condition is to provide a systematic means for
- ru!^.tir.g funds for the ultir: ate deccruissioning of the facilitie:.
As i; is nat Eatteile's intent to in any way prcfit frcm this arrangement, any e cess 'unds remaining in trust will be returned to those who contri-bute. :: the f;nc, in pre.cortion to each contributor's allocable share of trus-notributions and net earnings.
It h?: teen decided that two trusts will be used to im? lee.ent this license cond i:n--cr.e for goverr. ental funds and one for industrial funds.
The trus: Scrents to be executed are attached; no tems of substance will be chanc3d without the approval of the EC.
'cle as s ee the terms and conditions for implementing our financial plan are acce "ble and provides the necessary documentation fer the issuance c' the ^: mal anendment to our license.
Should you have any :uestions, please call e.
V2ry :culy yours, fr Haric;. L. Toy Licer:ir.c Ccordinator HLT:si.
Enc (2)
DRAFT Government Trust TRUST AGREEMENT This Trust Agreement is Entered into this day of
,1980, by Battelle Memorial Institute ("Battelle") as trustor and the National Bank as trustee to receive and hold certain payments from the United States Government.
Purpose Battelle owns nuclear research facilities in West Jefferson, Ohio, (the " Facilities")
which, in the normal course of operations, are contaminated with radioactive matter. Af ter a certain period of usage, these Facilities will have to be decontaminated and decommissioned. A license to operate the Facilities has been issued by the United States Nuclear Regulatory Commission ("NRC"). As a condition for the issuance of that license, Battelle was required to demonstrate the financial viability to decontaminate and decommission the Facihtles. In conjunction with various Government agencies including the Department of Defense ("DOD") and the Department cf Energy (" DOE") of the United States, who sponsor a substantial volc~ of the research and development at the Facilities, Battelle created such a plan for identifying the costs of decontamination allocating the financial burien of those costs to all users of the Facilities, both Governmental and industrial, and for returning any excess funds to the users af ter decontamination and decommissioning is complete. NRC has reviewed and accepted the plan so developed, and made it a specific condition of the license.
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m 2-The plan requires users to remit an allocable share of decommissioning costs when they. remit their other _ payments for usage of the Facilities.
The license additionally requires that funds collected be held in trust. DOE and DOD further req'uire that the payments so collected from the Government be held separately, and that after the facilities are completely decommissioned, any excess funds be returned to the Government.
This trust is being created for the deposit of such remittances from governmental users,'and to provide assurance that: the amounts deposited in trust are invested in high quality instruments or securities; the amounts deposited are not comingled with Battelle's own funds; the earnings on the _ amounts deposited are fully segregated from Battelle's earnings on its own funds; the amounts deposited are protected from Battelle's general creditors; the trust assets are held solely for the benefit of the governmental users of the facilities; the assets and earnings of the trust are not subject to state and federal income or ad valorum taxes.
All amounts received by Battelle from the Governmental users of the Facilities as their allocable share of decommissioning costs of the Facilities are to be paid over to the trustee by Battelle, to be _ invested until actually needed for decontamination of the Facilities.
No funds may be returned to the Governmental users until ultimate 1
decommissioning is complete, unless the NRC consents to the return of funds.
Powers and Duties of the Trustee The powers and duties of-the trustee are strictly limited to receiving, holding, investing, and disbursing trust funds for the purposes described herein. The duty of 'the
- trustee to make periodic accountings, other than the final accounting, shall be satisfied by the proper rendition of the monthly reports prescribed herein.
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. Trustee's Compensation The trustee shall receive a fee for acting as trustee as provided herein, to be agreed upon by the trustee and Battelle. This fee may be paid directly out of the trust funds.
Investment of Trust Funds Battelle may, from time to time, provide specific instructions to the trustee regarding -
the investment of trust funds. In accordance with the specific instructions, trust funds may be invested in:
demand notes with a rating of A-1 or P-1.
o o commercial paper with a rating of A-1 or P-1.
o certificates of deposit or banker's acceptances issued by a depository which has at least $100 million capital and surpius, department securities issued or guaranteed by the United States, o
its agencies or instrumentalities.
municipal bonds rated in the top three categories (AAA, AA, A) o by Standard & Poor's Corporation.
corporate bonds rated in the top three categories (AAA, AA, A) o by Standard & Poor's Corporation.
preferred stock with a sinking fund rated as "BBB" or better by o
Standard & Poor's Corporation, and preferred stock without a sinking fund rated as "A" or better by Standard & Poor's Corporation.
The - investments shall be consistent with projected cash flow needs for actual decommissioning as anticipated by Battelle.. Trust funds may not be invested in securities issued by Battelle er any of the industrial sponsors of research at the Facilities or any entity related to Battelle or the sponsors.
In the absence of instructions from Battelle, the trustee shallinvest the funds in those short-term time deposits offered by the trustee which bear the highest rate of interest.
- Removal of the Trustee
. Battelle may remove as trustee the National Bank or any successor, with or without cause. Such removal shall be effective upon receipt by the trustee of written notice of removal, a written appointment of the successor trustee, and such successor's written acceptance of the trust. Any successor must be a National Bank or Trust Fund with at least $500,000,000 in assets.
Upon removal, the removed trustee shall deliver all trust funds in its possession to the successor trustee and shall render a final accounting. Thereafter, the removed trustee shall have no further powers or duties as trustee.
r Termination The trust shall end when all of the trust funds have been disbursed and there are no further deposits to be made into the trust.
Periodic Accounting The Trustee will provide an accounting of receipts, disbursements, and earnings on a monthly basis.
Final Accounting Upon termination of the trust or upon appointment of a successor trustee, r% trustee i
i shall render a final accounting to Battelle and, upon request, to any Government agency
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- which sponsors research at the Facilities.
Trust Disbursements The trustee is authorized to make disbursement for reasonable expenses of trust administration, including taxes. The trustee may disburse money from the fund to Battelle to pay those costs of trust administration which are not incurred by or assessed against the trust directly, provided that Battelle certifies to the trustee that those costs are directly related to the operation of the trust. Such costs might include taxes relating to trust deposits or income, and expenditures required of Battelle or others because of the existence of the trust.
Battelle will, from time to time, direct the trustee to disburse money from the fund to pay for expenses associated with ddcommissioning the Facilities.
Disbursements for decommissioning may only be made in accordance with a decommissioning plan approved by NRC. Battelle will provide to the trustee copies of the decommissioning plan and NRC's approval, and must certify that each such disbursement is in accordance with the plan.
Upon completion of all decontamination and decommissioning, Battelle will direct the trustee to make a final disbursement of funds. Such final disbursement may only be made to 4
the Federal Government, with the concurrence of the cognizant Government Administrative Contracting Officer.
l Nonassignment Battelle may not assign its rights under this Agreement, or direct distributions ;n any manner not expressly provided for, unless otherwise agreed to by the Government. To the fullest extent permissible by' law, no legal process may be used to divert trust assets from their appropriate utilization as provided herein.
. Indemnity of Trustee Batte!!e agrees to hold the trustee harmless from any expense which the trustee may incur in performing its duties as trustee, except for expenses due to its own negligence, 4
willful misconduct, or unlawful act.
b Additional Terms This trust has been accepted by the trustee in and will be administered in the State of Ohio, and this Agreement shall be interpreted in accordance with Chio law.
If any provision of this Agreement shall be invalid or unenforceable, the remaining provisions shril continue to be fully effective.
Executed this day of Executed this day of
,1980.
,1980, National Bank, National Bank, Trustee Trustee By:
By:
Title:
Title:
- Signed in the presence of:
Signed in the presence of:
DRAFT TMC/prw 8/25/80
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