ML20009B662

Issues Amend 17 to License SNM-7 Adding Condition 26 to Incorporate Decontamination/Decommissioning Plans Described in 781122,1215,790425 & 801001 & 1215 Submittals.Amend Also Adds Condition 22 to License 34-06854-05

ML20009B662
Person / Time
Site:	07000008
Issue date:	06/19/1981
From:	Rouse L NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Toy H Battelle Memorial Institute, COLUMBUS LABORATORIES
References
NUDOCS 8107160579
Download: ML20009B662 (2)

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,[ E.- 3 's s 3 0FFICIAL RECORD COPY TO BE RETURNED TO TSCHULTZE M-3 74 1 Distribution: JUN 19 E E0ccketTile;76-8C C~1 License NO. 34-6 g g b ck f DCS SH0 IE (3) Docket No. 70-8 NMSS BBrooks w/o encl License No. $NM-7, Amenhent No. 17 FCAF e ACabell w/o encl PDR(G KiMeL) /o License No. 34-6854-5 Amendment No. 26 RECunningham w ^ TFCarter/wfo enc 1 LCRouse f ~'/ g satte11e Columbus Laboratories JEAyer r s# pYg ATTN: Mr. Harley L, Toy WBurkhardt s p NRC Licensing Coordinator RTKratzke 4[p 7 c-505 King Avenue Tschul tze I Columbus. Oh1o 43201 -I Gentlemen: p Pursuant to Title 10, code of Federal Regulations, Parts 30 and h v Byproduct Material License No. 34-6854-5 and Special Nuclear Materi) a License No. SNM-7 are hereby amended to *acorporate the decontamination / 1 l decommissioning plans described in your submittals of November 22 and December 15,1978; April 25,1979; and October 1 and December 15, 1980. Accordingly, Condition No. 22 is added to License No. 34-6854-5 and Condition No.26 is added to License No. SNM-7 to reaa as follows: "The licensee shall maintain a financial plan for decomissioning of the Battelle Hot. Cell Laboratory (JN-1) in accordance with the provisions described in the licensee's submittals of November 22 and December 15,1978; April 25,1979; and October 1 and December 15, t 1980. The annual review of the financial plan shali be documented by the licensee and the documentation maintained for review by NRC upon request. At end of life of the Battelle Hot cell Laboratory, kne licensee shall decantaminate the facility and grounJs in accord-l ance with the general decomissioning plans contained in the abova referenced submittals. Subsequent to the completion of the ongoing decontamination of the licensee's Plutonium Laboratory (,)N-4), the licensee shall submit a decomissioning plan and an appropriate financial plan for NRC review and approval before the use of unsealed radioactive materials may be initiated in JN-4. Alternatively, in lieu of such a decomissioning plan and financial arrangements, the licensee may propose for NRC review and approval use of radioactiva. materials in JN-4 demonstrating that such use is of a nature that j l the decomissioning and financial plan are unwarranted." 1 1 i ornceh810716os79 'sifsjs"" " T""""" " " " " " " ' " " ~ " " " " " " " " ~ " " " " " " " ~ ~ 3,,> PDR ADOCK 07000000 ~~~~~~~~..I ~~~~~- ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - ~ ~ ~ ~ ~ ~ ~ ~ - l onnylC ppg .................p..... 'enceonu m uot oinncuv2.o OFFICIAL RECORD COPY = c

m, % '*.k k g Battelle Columbus Laboratories JUN 19 TA In addition both licenstes are amended to permit periodic increases in the Hot Cell Laboratory fuel storage pool due to non-routine operations. Accordingly, Condition 18 of License No. SNM-7 is revised and Condition 23 is added to License No. 34-6854'.5 to read as follows: "The upper limits of radioactivjty in the fuel storage poo} during routine operations shall be 10" uci/ml beta-gamma and 10 uC1/ml in this pool shall be 5 y 10~gions the upper limits of radiogetivity alpha. For non-routinre opera uC1/ml beta-gamma and 5 x 10~ uC1/ml i alpha. The period fer non-routine operation and the procedures esployed during that priod shall be as described in your letter to NRC dated Octobe? 31, 1980." All other conditions of these licenses shall remain the same. 1 For convenience and ease of reference, we have attached copies of the Battelle submittals referenced in the above amendments to License No. SNM-7 and License No. 34-6854-5. I have also attached a copy of my letter of June 29, 1979 to Battelle regarding your decommissioning and financial plans. Please note that the NRC studies referred to in the second paragraph of ny. letter are c.ontinuing and, as stated in the letter, may result in necessary modifications to the deoommissioning plans adopted through these amendments. FOR THE NUCLEAR REGULATORY COP 94ISSION Original signad by Leland C. House - Leland E. Rouse, Chief 4 I Advancei Fuel and Spent Fuel Licetising Branch Divistori of Fuel Cycle and j Material Safety

Enclosures:

As stated cc: Mr. James Buchar Contracts Manage:nent Office U.S. Department of Energy i I a' " ' " >..F.CAF.. . 7. .LCR9 jlb.........../. 7..'.!............... ..Gl)9.l8L.. ">. M I.0.1.... wac eanu m ne un emeu cue OFFICIAL RECORD COPY L

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l' JUN 2 0 1974

) ~} Docket No. 70-8 i .g q Battelle Columbus Laboratories j~ ATTN: Mr. liarley L. Toy NRC Licensing Coordinator , 505 King Avenue [ Columbus, Ohio 43201 j Gentlemen: We have completed our review of the conceptual decommissioning plan with 9 its cost estimate for the Battelle llot Laboratory (JN-1) and the related 4 financial plan, as described in your submittals of November 22, 1978, ~ December 15,,1978 and April 25, 1979. These plans were submitted at our request, reflecting our position that such plans are required for major licensed facilities. We agree that your cost estimate for decontamination of the' facility to enable its release for unrestricted use is reasonable and the proposed financial plan for assuring the availability of the required. funds is' acceptable. Accordingly, as I discussed with your Dr. Kenneth Brog, these commitments will be made conditions of Licerse No. SNM-7 and License llo. 34-6854-5 through license amendments as soon as you inform us that you have completed the steps necessary to implement the ~ renewal (which would consolidate these two licenses) pplication for licen We have under review your a proposed financial-plan. and at such times that x ,P licensing action is taken on this request, these sa'ac license conditions will be incorporated into the renewed license.

• As license conditions, the provisions of the financial plan will be subject to periodic review by the NRC.

In this regard, we note that the description of the financial plan submitted by your letter of November 22, 1978 includes a commitment for annual review by Battelle. Documentation of these reviews must be maintained for review by NRC upon request. Any audits performed by the Defense Contract Audit Agency (DCAA) may al.so be used by the NRC in it.s reviews to confirm that the provisions of the plan are being carried out as described. Also as published in the Federal Register on March 13, 1970 (42 FR 10370), the NRC has undenfay extensive studies intended to provide a data base for. developing decommissionf ag criteria for nuclear facilities. ', The Commission is considering amending its regulations to provide more specific guidance on. decommissioning criteria for NRC licensees. The ,\\ conditions added to your licenses, as discussed above, may be subject to modification depending upon the requirements that are developed. 'M9/d#Ay.

m-, 7 ?, Xi? kr g so. .,9 = .a .[ - a = Battelle Columb'us Laboratories JW 2 S 198 3 .t - With resnect to the Plutonium Laboatory (JN-4), we recognize that you are pre:;untly decontaminating this facility to a condition that would 1 enable its release for unrestricted use. As we discussed, we also plan to condition License No. SNM-7 to require submittal of a decommissionir) plan and appropriate financial plan for our review and approval before any subsequent use of unsealed radioactive naterials may be initiated in ....u. a the facility. In this regard, we'recomend that you inform our Office of. Inspection and Enforcement, Region III, at the time deconta'ination h m o,f the facility is complete to provide opportuni.ty for an NRC confirmation ,] ~ survey as to the-contamination status of the facility. .If you have any questions concerning these matters, please let me know. Singerely. OWhGdped by ggLC.Rone Leland C. Rouse, Acting Chief Fuel Reprocessing and Recycle Branch Division of Fuel Cycle and ~ Material Safety cc: Mr. James Buchar Contracts Management Office.

U.S.. Department of Energy d.

,.re a safe radiological environment during those periods of non-routine operations. We assume the information outlined above is satisfactcry and will enable you i to proceed with your review of this reque:ted amendment. Should you require additional infomation for your evaluation, please call on us. Very truly yours, gh. y,) - l ' - a Harley L.-Toy NRC Licensing Coordinator HLT:lba t umxrour 01c.ynon '7o - S m mn @Battelle o ,/ Columbus Laboratories ro f .( FA Mng Avenue t' Columbus, Ohio 41201 (n g( 9 gO 7 '] Telephone (614 424-6424 Tel<n 24-549 p g 1 ,,,s *

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..oa' December 15, 1980 s.?hNL ' y sy-ht/ DoaWiD ge ..;\\, unec 'ilr. Leland C. Rouse 9-JAtl0 7 C BI > i Advanced Fuel and Spent Fuel Licensing p Ngss ',/ E, ,im SECTION Division of Fuel Cycle and ttaterial Safety s cccat cum U.S. Nuclear Regulatory Commission' Washogton, DC 20555

Dear Mr. Rouse:

~ Docket 70-8; Financial Decommissioning Plan for Battelle's Columbus Laboratories c This letter is to inform you that in accordance with the understanding Battelle has with the Departments of Energy and Defense, and in anticipation of the amendment to Batte11e's Special Nuclear Materials License, Battelle has estab-lished the two trusts described in my letter to you dated October 1,1980. Copies of the two executed trust documents are enclosed. With the exception of several minor wording changes suggested by the trust company, the documents are substantially identical to the drafts previously submitted. If I can provide any additional information, please contact me. Very truly yours, p,6l,.a. m - Harley L. Toy Licensing Coordinator HL1:lba Enc.(2) gU1 W:Y ..,,.a.n )'bWO.~:.k-a P.z$YOA4f7 A ~ fg108 ,m.... e, s.,. nn.nn

mm Lh.g.+' (~ hy (, m ' Industrial Trust - TRUST AGREEMENT c This Trust Agreement is entered into this - 1st day of December,1980, by' Battelle-i i "'iemorial Institute ("Battelle") as trustor and the Bank One Trust Company, NA as trustee to c< receive:and hold certain: payments' from ' sponsors of industrial research and development.

j

carried on by Battelle. :

1 Purpose Battelle -owns nuclear research facilitiesiln West 3efferson, Ohio, (the " Facilities"): 1 rwhich, in the normal course of operations, are contaminated with radioactive matter.~ After a7certain Lperiod - of : usage,r these. Facilities ' willihave to be decontaminated and 3 ~ ~ l decommissioned.E A license to operate the Facilities-has been issued by the United. States 1 Nuclear Regulatory Commission ("NRC"). t Battelle is now being required.to demonstrate the financial viability to decontaminate and decommission the Facilities as a condition 'for

future 7 operations.

In conjunction with - various Government eagencies including the ' Department' of: Defense ("DOD")- and the Department;of Energy (" DOE")_ of the United ' + c, States, who sponsor a substantial volume of the research and development at the Facilities, [ .Battelle created such a plan for identifying the costs of decontamination and for allocating i he financial burden of-those costs to all users of the Facilities, both Governmental and industrial, and for returning' any-excess f ands to the - users' after depontamination and

decommissioning is complete. The plan so developed is'to be made a specific condition of

he license by the NRC.

~ c. ~ The plan requires the users to remit an allocable share of decommissioning costs when the~ remit their other payments for usage of' the Facilities. The license will additionally y require that funds collected be held in trust. This trust is being created to hold the funds of ~ industrial sponsors separately from those'o.f DOE' and DOD, as required by those agencies, zand;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 i; ffunds; the earnings on the amounts demsited are fully segregated from Battelle's earnings i, on its own funds; the amounts deposited are protected from the general creditors of the . industrial sponsors and Battelle; and the trust assets are held solely for the benefit of the ~ ' Industrial sponsors of research at the Facilities. . All amounts received by Battelle from industrial users of the Facilities as their allocable share of decommissioning costs of the Facilities are to be paid over to' the trustee i iby Battelle, to be invested until actually needed for decontamination of the Facilities. No funds may be returned to the industrial users until ultimate decommissioning is complete, [ lunless the NRC' consents to the return of funds. 8 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 accounting other than the final accounting, shall be satisfied by the 5 proper rendition of the monthly reports prescribed herein. ,q' l,218108 y om __, .N. + .,-er'. .~ -,-.-r, 6,,,, ~m ...-r. r, ,e ,.,.- --.=-- - - - -

v. .*l 'f7 ( ( 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 shall, 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 of issuers with a rating of A-1 of P-1. e commercial paper with a rating of A-1 or P-1. e certificates of dep$50 million capital and surplus.osit or banker's acceptance e which has at least securities issued or guaranteed by the United States, its agencies or e instrumentalities. u municipal bonds rated in the top three categories (AAA., AA, A) by e Standard & Poor's Corporation. t1 e corporate bonds rated in the top three categories (AAA, AA, A) by Standard & Poor's Corporation. preferred stock with a sinking fund rated as "BBB" or better. by e Standard & Poor's Corporation, and preferred stock without a sinking fund rated as "A" or better by Standard & Poor's Corpccation. 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 or any of the industrial sponsors of research at the Facilities or any entity related to Battelle or the sponsorsc In the absence of instructions from Battelle, the trustee shall invest 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 Bank One Trust Company, NA or any successor, with or without cause. Such. removal shall be effective upon receict 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 with at least $500,000,000 in assets or a trust company with at least $500,000,000 in managed assets. en

pg - - s {; 'e-1,, a -{ -{. 1 ~. Upon removal, the, removed trustee shall deliver all trust funds in its possession to the successor trustee and shall render a final accounting. Thereaf ter, the removed trustee shall

have no further powers or duties as trust, e.

g F Termination The trust shall end when all of the trust funds have been disbursed and tnere are no -further deposits to be made into the trust. s 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, the trustee - shall render a final accounting to Battelle and, upon request, to any sponsors of industrial research at the Facilities. u 4 4 Trust Disbursements The trustee is authorized to make disbur.sement 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 Battelli certifies to the trustee that those costs are directly related to the operation of the trust. Such cest*, might include taxes relating to trust deposits or income, and expenditures required of Battelle or others because of the exirtence -of the trust. 'Battelle'will, from time to time, direct the trustee to disburse money from the fuad to pay.for expenses associated with decommissioning. 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 accordexe 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 industrial users o'i the Facilities, h proportion to their respective share of trust corpus and ' allocated earnings. If any entity which contributed to the fund is not in existence at that time, then payment shall be made in accordance with a letter designating a successor in interest. If no such letter is on file, then payment will be made to any charitable or5anization, contributions to which are deductible under the Internal Revenue Code, selected by Battelle. 9 . *p a

( ( .,. Nonassignment Battelle may not assign its rights under this Agreement, or direct distributions in 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 for decommissioning as provided herein. Indemnity of Trustee Battelle agrees to held the tr.istee harmless from any expense or liability which the, trustee may incur in performing its duties as trustee, except for expenses or liabilities due' to its own negligence, willful misconduct, or unlawful act. Additional Terms The trust has bee i accepted by the trustee in and will be administered in the State of Ohio, and this Agreement shall be interpreted in accordance with Ohio law. If any provision of this Agreement shall be invalid or unenforceable, the remaining provisions shall continue to be fully effect.ve. + w Executed this 1st day of December, Executed this Ist day of December, 1980. 1980. Battelle Memorial Institute - Trustee Bank _ Tru Co., NA - Trustee By M ~~[ By: - s / Maurice &. Stark G. Ronald Henderson / Vice Pre'.:ident-Finance Vice President / and Treasurer Signed in the presence of: S' ned in the3 presence of: [W M 9.s.k raLu W4%%-u TMC/prw 8 p a161t8

Govarnm:nt Trust - + TRUST AGREEMENT-l( This Trust Agreement -is Entered into this 1st day of December,19SO, by Battelle Memcrial Institute ("Battelle") as trustor and Bank One Trust Company, NA as trustee to receive 'and hold certain payments from the United States Government. Purpose Battelle owns nuclear research f acilities in West Jefferson, Ohio, (the " Facilities") o which, in the normal course of operations, are contaminated with radioactive matter. Af ter a certain period of ~ usa 6e, 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"). Battelle is now being required to demonstrate the' financia! viability to decontaminate and decommission-the Facilities as a condition for future operations. Ir. conjunction with various Government agencies including the Department of Defense ("DOD") and the Department of Energy (" DOE") of the -United ~ States,'who sponsor a substantial volume of the research and development at the Facilities, Eatte!!e created such a plan for identifying the costs of decontamination and for allocating the financial burden of those costs to all users of the Facilities, both Governmental and indus: rial, and for returning any excess funds to the users a'ter decontamination and decommissioning is complete. The plan so developed is to be made a specific condition of the license by the NRC. 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 will additionally recuire that funds collected be held in trust. DOE and DOD further require that the - p" ~ payments so collected from the Government be held separately, and that after the facili a e completely decommissioned, any excess funds be returned to the Government. This trust is.being created for the deposit of such remittances f'ro'm governmental use s, and to provide assurance that; the amounts deposited in trust are invested in high - cuali:y instruments or securities; the amounts deposited are not comingled with Battelle's 3 cwn funds; the earnings on the amounts deposited are fu))y segregated from Battelle's ea nings on its own funds; the amounts deposited are protected from Battelle's general credi: ors; the trust assets are held solely 'for the benefit of the governmental users of the fac!!!:les; the assets and earnings of the trt.st 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 ther allocable share of decommissioning costs of the Facilities are to be paid over to the

ru'stee by Battelle, to be invested until actually needed for decontamination of the

- Faci!! ties. .No funds may be returned to the Governmental users until, ultimate decommissioning is complete, unless the NRC consents to the return of funds. Powers and buties of the Trustee The powers and duties -of the trustee are strictly limited to receiving, holding, Inves:ing, and disbursing trust funds for the purposes described herein. The duty. of the

ru.etee :o make periodic accountings, ether

'm :he final accoun:ing, shall be satisfied by ( t e p per rendi !on cf :he monthly reports prescribed herein. t 4 ~

,7 , f-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 shall, from time to time, provide specific instructions to the trustee regarding the investment of trust funds. In accordance with the specificinstructions, trust funds may , e invested in: b i demand notes of issuers with a rating of A-1 or P-1. e commercial paper with a rating of A-1 or P-1. e certificates of deposit or banker's acceptances issued by a e depository which has at least $50 million capital and surplus. guaranteech by the United States, its e securities issued or agencies or instrumentalities. municipal bonds rated in the top three categories (AAA, AA, A) e by Standard & Poor's Corporation. corporate bonds rated in the top three categories (AAA, AA, A) e by Standard & Poor's Corporation. preferred stock with a sinking fund rated as "BBB" or better by e Standard & Poor's Corporation, and prefered 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'or 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 shall invest the funds in those short-term time ds,.,osits of fered by the trustee which bear the highest rate of interest. Removal of the Trustee Battelle may remove as trustee the' Bank One Trust Company, NA or any successor, with or without cause. Such removal shall be efIective 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 with at least $500,000,000 in assets or a trust company with at least $500,000,000 in managed [ (; assets. r-

u _7-- ~ 7. , ; c. -.O _3_ - Upon removal,'ihe removed trustee shall deliver all trust funds in its possession to the - L( successor trustee and shall render a final accounting. Thereaf ter, the removed trunee shall have no Nrther powers or duties as trustee. Terminatio-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. 4 Final Accounting Upon terrnination of the trust or upon appointment of a successor trustee, the trustee shall render a final accoun' ting to Battelle and, upon request, to any Government agency which sponsors research at the Facilities. Trust Disbursements - p V .The trustee is authorized to make disbursem *nt for reasonable expenses of trust - administration, including taxes. The_ trustee may di >urse money from the fund to Battelle to pay those costs of trust administration which are et incurred by or assessed against the trust directly, provided that Battelle certifies to the trustee that the:e ' costs'are directly relcted to-the operation of _ the trust. Such costs might include taxes relating to trust deposits or income, and expenditures recuired of Battelle o'r 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 decommissioning the Facilities. Disbursements for decommissioning may only be made in accordance with a decommissienin5 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 d.ecommissioning, Battelle will direct the trustee to make a finaj disbursement of funds. Such final disbursement may only be made to. the Federal Government, with the concurrence of the cognizant Government Administrative Cont: acting Officer. Nonassignment Batte!!e may not assign its rights under this Agreement. or direct distributions in any ma.ner net expressly provided for, unless otherwise agreed to by the Government. To the 1(- fu::e'st extent permissr:!e by law, no legal process may be used to divert trust assets from .the. appropriate utilizatien as provided herein. y -e ,, ~ <..,,, - <y.w% ,--.w-7

4 n Indemnity of Trustee Battelle agrees to hold the trustee harmless from any expense or liability which the trustee may incur in performing its duties as trustee, except for expenses or liabilities due to its own negligence, willful misconduct, or unlawful act. 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 Ohio law. If any provision of this Agreement shall be invalid or unenforceable, the remaining provisions shall continue to be fully effective. Executed this 1st day of December, Executed this 1st day of December, 1980. 1980. ~ Battelle Memo-ial institute - Trustee Bank Trust [Co., NA - Trustee g,. By: 2 -,b..MM By: V / M aurice.G. Stark G. Ronald Henderson / Vice President-Finance Vice President and Treasurer Signed in the presence of: Siy,ae.d in the,es'ence of: J

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n. MR J_ p;f .4 October 11,gl980L T'.s..n. 7 s," ch$ - %:7., ; y 2 %;; y Q,)," i D O c z575t;. Q. r .p ~~4 . cyq, ' . g. ;, : G y d &; Spent Fuel _ Lice'nsing ICT D 9 R$3 c, 3 ,'J.jicr;c 3 ) D.J N..Nl,W _Divis'on.of Fuel Cycle & Materia 1;Snfety; / U S..W:ieartReplato"y Cc:.nission MashinMon,D.C. c20c55' nWpV/ w i w' 9 N1 " Dear 'Y Rouse: Docket 70-8; Financial Deconnissioning Plan,for h -Battelle's Columbus Laboratories-

This'ietter ist to advise _ you'of the; specific teres and conditions.for limple>entationiof the financial plansfor' the eventual decommissioning ifor M restricted use of the.Battelle Hot Laboratory (JN_l).

This-

notification is made.in response to.the-request outlined in your letter tof, J0r.e 29,1979.

.lihese terms and coaditions are. based upon our-previous discussions with your ' office.concerning cirdplementation--of the plan. The plan has been appriied for. fur. ding'by the. cognizant Department of Energy (00E) and ~ the Department of Defense (D0D)' contracting officers, and the terms , ta' Iso.reficct th'ir input. e -The bisic financial plan, rs. agreed to with DOE and D00, was disclosed lby; prior correspondence with the NRC. The terms and conditions stated in ltr.is letter will also apply to the plan which we understand will be .inco'rporated by reference in our license. Battelle will place all amounts collected in accordance uith the Plan inte. trust. The trustee will_be jndependent of Battelle and of the users who a re paying funds into-the trust. The trustee will be a' national ._ bank er trust _ department with at least $500,000,000 in assets. Cattelle ^ say, nowever, retain the.right to direct the trustee's. investments in (order to reduce trust administration fees, but may not direct investments _3 forEits own benefit. Trust funds may not be diverted from their intended 1p1rpse _off decc=issioning. The trustee will, of course, pay all trust !adm4ristration expenses and taxes, including any directly incurred by

Battsileisolely1because of the trust's existence.

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m i[ . Mr. Lee ?.suse ~ E U.S. U clear Regulartory Ccm ission 2 October 1, 1980 4 Trust funds may only be used for ultimate decommissioning in accordance with a_ decontamination and decommissioning plan approved by the NRC. .The trust funds are not to be Lsed for routine decontamination which is ac ad.' :r.:t to normal operations. All expe_nditures of trust funds are s'4bj::t to NRC audit and review, and Battelle and the trustee are to retai cc,plete records of trust activities for that purpose. The p.:rp:.se of this license condition is to provide a systematic means fee : :.: lating funds for the ultimate decennissionin:; of the facilities. As i'r is.ot Bl.:telle's intent to in any way profit from this arrangemeat, a'ny'ee.;ess funds remaining in trust will be returned to those who contri-buted :: the fur.d, in proportion to each contributor's allocable share of trust ::-tributions and net earnings. s It Ig s sen decided that tuo trusts will be used to implement this license cond't':r--one for governmental funds and one for industrial funds. The trust d::uments to be executed are attached; no tenns of substance will be changed..ithout the approval of the NRC. k'e ass. e the terms and conditions f or implementing our financial plan are accep:5tle and provides the necessary documentation for the issuance of the f:rnt) amendment to our license. Should you have any r,uestions, please . call e. "ery trt.lj yours, 'l ~ i Ha rl t:. L. Toy Licers'r; Coordinator HLT: sib Enc-(2) k e P-

. + - - m

e DRAFT!

,, M ' Industrial Trust - y w_ TRUST AGREEMENT 5 ~ - This Trtit; Agreement'is entered into this day.of ,'1930, (by; Battelle f Marf rial Institute - ("Battelle"). as l trustor and - the - LNitional. Ban'< as trustee to receive and hold certain payments from sponsors of :ide strial- - resesrch and devalopment carried on by Battelle. Purpose Battelle owns ' nuclear research facilities in West Jefferson, Ohio, (the "Facilitiesi J ~ - shich, in the normal course of operations, are contaminated with radioactive matter. Af ter. a; certain: period-of ' usage, these Facilities will - have toe be decontaminated : and decommissioned. A license to operate the Facilities has beeri issued by the United States Nuclear Regulatory Commission ("NRC"). ' As a ccndition f ar the issuance of that licerse, 'Battelle Lwas ' required to demonstrate the financial viability to _wntam nate and-i m fdrecommission'the Facilities. In conjunction with various Government Agencies including the D'epartmentlof Defense ("DOD")_ and the Department of Energy (" DOE") of the United Staces, who sponsor a subs' antial volume' of the research and development at the Facilitias, t ' -Battelle ~ created 'such a plan for identifying the costs of decontamination and developed a . met %d ~ f allocating the: financial burden of those cost.; to all users of the Facilities, hath o

Governmental and industrial, and fer r'eturning any excess funds to the users altur decontamination and decommissioning lis complete. NRC has reviewed and accepted the

. plan so developed, and made it a specific condition of the license. The plan' requires'the users to remit an allocable. share of decommissioning costs vihen a-. ithey, remit theiri other' payments for. usage of the Facilities.- The license additio.vdly 6 o p. d,-

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s . [ M 4 requires iistlfuIds collected b'e(held in trusthThis tr'ust is being created ~to hold the funds-x y n .. m _.x.. sbf;industriil sponsors separately?from those of DOE and DOD, as required byithose' agencies,. ~ ~ yg ThanS[tojprovids::assu'rance thati the arnounts deposited in trustrare invested lin'highiquality 19 ,, dnstfuments erj.ecur_ities; jthe amo0nts Ldepositsd :arey not ; comingled 'with? Battelle's. own ~

iunds;;the? earnings on the amounts deposited'are fully segregated from Battelle's carnir.gs

~ x - ei"its ovm fuhds;j the~amountsideposited are protected from:the general creditors oIlthi, !ddustrialVonsors and-Battelle; andithe trust assets are held solely for the benefit of the d indus rial sponscrs'of re' search at the' Facilities fall amounts received by Battelle from; industrial sponsors.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. All' income of these ~ deposits in the trust shall b'e reinvested,

I 46 Mil actually needed for decontamination of th'e Facilities. No funds may. be returned.to ' ' ~ -he industrialfsponsors until ultimate decom'missioning is complete, unless the NRC consents ~ r J To the return of funds.' 4 Powers and Duties of the Trustee L - The po'.yers and duties _ of the' trustee are strictly limited to receiving. holding. Investing,;and disbursing trust funds for the purposes described herein. The duty of tha L r0stee to make periodic accounting other than the final accounting. shall be satisfied by a : t ' proper rendition lof the monthly reports prescribed hereia. ~ 4 Trustee's Comoensation -- Jhe trustec shall receive..a fee for acting as trustee as provided herein, to be agreed ' 10%qn bp ths trustee and Battelle. This fee may be paid directly_out of the trust funds. 5' = s-y,,; e

C. _ __,p., 77 -,. ; J%, +- p. g -, gx h r _3; a ~ Investment of Trust Funds "\\ Battel!c may, from time'to time, provide, specific instructions' to the tr' stee regardini u 'the'investn6nt of truat funds, in accordance v}ith the specific instructions, trust funds rnay be' invested in: o demand notes witii a rating of A-1 of P-1. . o ' ccmmercial paper with a rating of A-1 or' P-1. o certificatm of. deposit or banker's acceptances issued by a depository .which has atleast $100 milli 5n capital and surplus. ' o - 'dep:-rtment securities issued or, guaranteed by the _ United States, its agencies or instrumentalities. o' ' mdnicipal bonds rated. in the top three categories (AAA, AA, A) by Standard & Poor's Corporation. o. cer; orate bonds rated in th$ top-three categories (AAA, AA, A) by Stu.dard & Poor's Corporation. .o pre

• erred stock with a sinking fund rated "BBB" or better by Standard &-

P&'s Corporation, and pre!ctred stock without a sinking fund rated as "/,' or better by Standard & Poor's Corporation. ~ .The ' investments shall be consistent with' projected cash flow needs for actual .dec'ommissioning as anticipated by Battelle. Trust funds may not be invested in securities ~ issued by B:ttelle or any of the industrial sponsors of research at the Facilities or ary entity related to Battelle or th'e sponsors. In the absence of instructions from Battelle, the trustee shallinvest the funds in thor,- short-term time deposits of fered by the trustee which bear the highest rate of interest. ~ -Removal of the Trustee 1 Battel c. may remove as trustee the National Bank or eny Jsuccessor,' with or without cause. Such removal shall be effective upon receipt by the i trustee of-written notice of removal, a written appointment of the successor trustee, nad e 1 ^ T f

py p ~- , = - - - ~ ~ gl::j-G h.k. s. [ Tim e a.., 3. - e " ~ Y .4' p yg e ~ h., ~ g a. a 6 i ~ TechLsucc'es'sor s"w'ritten acceptance of the trust. An successorfmust be aLnational bank or ~ z;. Nrust fund with t.t least $50.0,000,000 in assets. -

4s

~ J_ ^ (Uporil removal,;the removeiLirustee shall deliver all trust. funds in its possession to th, =

succ ssor trustee and shall render a final riccounting. Thereaf ter, the removed trustcc sha!

ihave no faitherjpowers or duties as trustee.. b " Termination - 3:.. The trust shall end when all of the trust funds have been disburr,cd and there are no ' ~ ' further deposhs to be nade into the trust.. r e. Periodic Accounting

The *rustee will provide an eccounting' of receipts,. disbursements, and carnings.en a monthly basil -

Final Accounting

Upon termi.-ation of the trust or upon appoin+ ment of a successor trustee, the trusae

- shall render a final accounting to Battelle and, upon request, to any sponsors of inder, trial research'at the Fac_lities. i ' Trust Disbursements e, - Th6. trustee is authorized to make disbursement for reasonable expenses ei tru-t ~ ' cdministra i:n, in:!uding taxes. The trustee may disburse money from the fund to th:t. !!e !tn pay}tijos': c stici trust administration which are not incurred by or assessed nyd;o:. :e 4 1 j +v-- ~ g% y -T T-y y$

w y,; %y ..; ~ u ;g.s. w - Q Y :,,b r,[: * ; * ? - . 5.. bust directly, provided that Bcite!!e certifics to the trustee that those costs are direct:n s Lrelatedi to the-operation of the. trust. Such costs rnight include taxes relating to trust -

deposits er income, und expenditures required of.Battelle or others because of the existence "ef the trust.,

' Batte!!e will, from time to time, direct the trustee to disburse money from the ferd t-c ay : for? exppnses associated s.'-h decommissioning. the Facilities. Disbursements for - w ' decommissioning may only be rr.ade in accordance with a decommissioning plan approve (' by NRC. Battelle will provide to the_ trustee copics of the decommissioning plan and NPs. approval, and must certify that cach such disbursement is in accordance with the plan. Upon completion of all decontamination and. decommissioning, Batteile will direct the

trustee to mak'e a final disbursement of funds. Such final disbursement may only be inade to

indestrial users of the Facilities,.in prop 6rtion to their respective share of trust corpus and-f-

allochted earnings. II:any entity which con.tributed to the fund is not in exiatence at that ~ .c time; then payment shall be made in accordance' with a letter designa' ting a successor. in .in terest.. If no such letter is on file, then payment will be raade to any charit4!e . organization, contributions to which are deductible under the Internal Revenue Code, z seledted by Battelle. Nonassignment

Battelle may not assigri its rights under this Agreement, or direct distributiora ir any 9-

-inanner not expressly provided for, unless otherwise agreed to by the Government. To the iullest extent permissible by law,,no legal process may be used to divert trust assets from ~ (thei. appropriate utilization for decommissioning as provided herein. ? t i '

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T. e;, ,j ' - ^ 'J 'yi, .g Q;- L ;.yL ' . i k \\ E' n ~ h: ~(, + l = ( Indemnity of. Trustee " m. ,.....,-, t s r v.

Battelle agrees 1to hold the trustee harmfessLfrom any expense which the trustee rnay -

= ~ L ~ p i;in.curtin peiforming;its duties:as trusteei;cxcept for expenses due to its.owrrnegh~gence, 1 s. cc e -;wi!!!u! rniscenduct, or unlawful act.. s 1 .^ T Additional Terms.. 4 _g s .)-- l a

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The;trusi has been accepted by the trustea in and vn11 be administered.in the Stat 6 o!

I; 11 Ohio, and this ' Agreement shall be interpreted in accordance with Ohio law.. t 4. t'f any. provision of this Agreement shallube invalid or unenforceable, the rerrainini i ~

irovi.lons shall continue to be fully effective..

q s: ~ oa ! Executedithis-day of E::ecuted this, . day of , 1980.~ ,1930. National Banki National Bank,- Trus:ce Trustee 1By: - By:

Title:

~.. 15)gned iri the presence of: Signed in the presence o!: ~ [D2Ai'T; m iT,Y.0/ptw o a+ +,,... 7, 4/23/30~ _i >? , y;. q -u i

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c/ 0 '.s : uu ( April 25, 1979 g g 7. ' Mr. Leland C. Rouse, Chief Fuel Processing and Fabrication Branch Division of Fuel Cycle and Material Safety Office of Material Safety and Safeguards U.S. Nuclear Regula tory Commission Washington, D. C. - 20555

Dear Mr. Rouse:

Docket 70-8 ' Supplement to 1.icense 7NM-7 This letter provides supplemental. information to the Financial Plan for Decommissioning of the BCL Contaminated Facilities transmitted under cover letter dated, November 22, 1978. Attachment I is t nclosed which responds to your request for additional cost and task detail associated with the D&D of BCL's Hot Laboratory and Plutonium Laboratory. I' Battelle's Columbus Laboratories, a Division of Eattelle Memorial Institute, 'is a multinational contract research organization which recognizes its obligations in conducting nuclear research under license authorized by the U.S. Nuclear Regulatory Commission. This includes responsibility for pro-ceeding in a timely manner with the decontamination and/or decommissioning (D&D) of the BCL licensed facilities. . We would trust that the supplemental information presented in Attachment I meets your requirements for approval and formal adoption of the plan as a lice.nse amendment and condition to License SNM-7 and Byproduct License No. 34-6854-5. Should there be unanswered questions, they should not impact the issues raised by DOE with respect to BCL proceeding with the implementation of a financial plan to accumulate funds f rom current users of the facility. We would therefore request that you advise DOE (with a copy to us) that the concept is acceptable with NRC. I will call you Fbnday to discuss any remaining questions. Very truly yours, f) , 4 ' ~~ 2M 9, Harley L.. Toy NRC Licensing Coordinator Au Q') 'g L HLT:lba e, J 7 0 8- % Yean m susice Enc. (1) 79ple23$11# 1m-1'C9

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~s. n e, l:.,, .., ~, 'le ?(;Tt;;? ' (2" ..p,. + - - l l ATdACHMENT 1 .e i HOT-CELL LABORM iRY -(JN-1F 1 -m Breakdown of Costs? 4' ~ O s t sg .o ,t ~ Basedion11978: dollars, the;esti=ated costsnto decontaminate the-r 7, -: Hot Cel1 Laboratory._is $3."5' million. -It.is1 further anticipated that this-h program will; require 3' years i. to fcomplete. The.following. is provided as? supplementaljinformation to the NRC. i'

1. : Program Tudks. The program is expected 'to include

~ ist a minimum.the following subtasks.- ?(a) - : Program ~ planning ~ ~ -(b) Remova1 Eof' bulk special n'uclear material (SNM) (c) Decontamination and/or removal of all equipment andJcell liners t (d) Decontamination and/or removal of all auxiliary _ systems ~ (e)i ! Decontamination and/or removal of the contami-- nated drain and holding-tank system '(f)- Decontamination of the pool water (g) Decontamination of the interior walls,. floors, -ceilings, and pool:to the level required for uncontrolled use. + (h)E. Packaging, transportation, and burial of all generated waste-(i) Restoration of the building's lighting and - ventilation systems (j) Certification of compliance with the appropriate . s tanda rds. - At present, this is assumed to be ' ANSI N13.12. t / 9 4 4 133708 1 b

W' _..yy . ' s; -.o ~.. . ; ; ;7, e g -, =:- . (:k ~ 2 2 . Component Cost Breakdown Man-Months - Costs. K$ A. Project Support Costs Program Management' 54 210 - Health Physicsi 108-253 Accountability 36' 84 Transpo rta tion 18 42 . uality Assurance -18 42-Q B. . Purchases.an'd Facility Cos ts PurchasesI.(inc1'udes supplies, 1260 ~ transportation,Leask rental, waste container, subcontracted, and burial costs) Facility. Operation 720 C. Subtask a. Program Planning Included in A Above Lb. Removals 6 13 c. D&D Equipment '144 303 ^ d. Removals 60 126 e. D&D Drains .60 126 f. D&D Pool Water r3 38 g. D&D Interior 4U 101 h. Packaging & Transport 72 152 1. Restora tion 12 25 ~j. Certification 12 25 909 Total $3520 K e I 12708 r - >~=- + y r m- - - ,v

$T, ~ ~~ ] "' I-pr,'t %. 3-P ,_ PLUTONIUM LABORATORY (JN-4) Batte11e's Plutonium Laboratory, JN-4, is presently undergoing .~ decontamination to the levels required for unrestricted use. Certifi-cation of. these levels involves compliance with ANSI N13.12 and Attachment

,A of NUREG-0436 (March,1978).

It is' presently anticipated that this program will' be completed by January 1,1931. It 'should be pointed out that this program involves only _decon-tamination, not decommissioning. Battelle chooses to maintain its nuclear aaterials license in the event that Battelle, at some future time, would . decide to resume contaminating research operations in JN-4. Battelle realizes that once JN-4 is recontaminated, it would be responsible for submitting a new decontamination plan. Battelle proposes the following: 1. To submit a decontamination plan for JN-4 to NRC at the time JN-4 becomes conta=inated beyond existing guidelines for unrestricted use facilities 2. To ' review the need for ' submitting such a plan annually and report the results of this review to L the cognizant NRC representatives This approach would_ allow Battelle sufficient flexibility in its norma 1' operations while providing the NRC with regular updating. This . proposal would go into effect af ter the present program is completed and JN-4 is' certified to be decontaminated to the level required for unrestric-ted use under the aforementioned standards. E e 4 4 S 4 1270S

e (. ( u. m UBattelle u.s Columbus Laboratories 505 King Asenue ' '. k '" M 2 M 2' M '@ D2C 22 J.? !C 53 M December 15, 1978 1' _,-34s4 N, 3 U.E ~ IG. ? o . b N ( h .,\\ .a-a s s'.~l g w g s-k cp 'Mr. Robert Kratzke 1 / Fuel Reprocessing & Recycle Branch k Y. ..g Office of MU, clear Material Safeguards and Security U.S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear lir. Kratzke:

This letter is in response to our recent telephone conversations and . reiterates several of the points that haire been made. In addition, I will try to summarize where I think we are now. BCL submitted to the Department of Energy (DOE), Chicago Operations Office, a financial plan to accumulate funds for the eventual decon'tami-nation of our nuclear facilities. The plan was developed to provide a long-range solution to a potential future problem. In other words' the plan is not int, ended to assure that funds are currently available to cover previously contaminated facilities but rather to recognize the need for an orderly mechanism to accumulate funds to cover the future cost of a liability created by current and future operations. The purpose of obtaining D0D approval is to get them (and other sponsors) to recognize the necessity of assessing current users for a cost that will actually be incurred in the future. Since the Nuclear Regulatory Commission (NRC) has not adopted regulations nor promulgated guidelines in this area the plan is not necessarily expected to precisely parallel the eventual financial commitments associated with licensing conditions. However, since the plan makes good business sense and since it goes beyond currently promulgated regulations it is expected that it should satisfy most of any future requirements. It should, however, be emphasized that we are addressing future contamination problems but, with time, the plan can also help solve current contamination problems. DOE has tentatively approved the concept of creating a reserve to cover the eventual cost. They have, however, withheld final approval pending a review by NRC. In this regard Harley Toy transmitted a copy of the plan to you on November 22, 1978. From DOE's point of view your review would presumably address the assumptions of the plan based on its intended purpose and determine the adequacy of the plan to meet the future obliga-tions of BCL and BCL's sponsors of research. U.CD N ( - p r., 2 ~' S M'.b ;. } Q Q f1f/J h Q, W:WA -

.. ~. _ r a w . G :.m,. ~ b A=- jh Mr.jRcbart[Krctzk2 2- =Dscrmbsr~ 15,-1978 t 4 ' ou indicated a desire to review the decontamination / decommissioning plan ER lthat was_ utilized'to develop the required funda. As I indicated to you, f ~ an extensive, detailed' plan was1not developed,-primarily because there is r ~ ys _ ^ no-intent to decommission or decontaminate our facilities at this time and- . changing regulations ~would in all probabilitf make a detailed plan obsolete by the time it becomes necessary to decontaminate or decommission the facilities. We did howev,er develop a cursory plan which was used to

determine the magnitude of-the effort. This_was then compared to the efforts-3 and costs associated with retirement of the Battelle Research Reactor and ~ the 1

Battelle Plutonium Laboratory. A copy of a remo dated 12-27-77 from-. [ R.' W. Klingensmith to K. C.~ Brog which briefly describes the effort and cost is enclosed.. lYou also-indicated concern regarding the-possible necessity to decontaminate the facilities prior to the time that adequate. funds are available from the plan. As-I pointed out,'the plan is not $ntended to cover this type of Econtingency except'to the extent assets are available in theufund. This .is. addressed in the plan,~'i.e., "[ establishment of_this fund] does not i r' duce the total liability of any-party except to the extent of the assets e available in'the fund". I think this is fairly clear and would propose that.no change in the language be made. If any further commitments by Battelle are to become issues in the license renewal process, they should be addressed: separately from the proposed financial plan. The-final issue which you raised' pertains to the level of decontamination. Again,'I.think this is outside the scope of the financial. plan to accumulate reserves.- The. level of' decontamination can only be adequately addressed at the time a decontamination / decommissioning plan is developed. The intent, ^ however, is to have funds available to decontaminata'to " releasable levels" but to my knowledge this has not been defined by NRC. If the above adds anything in the way of clarification, it may be incorpor- ~ 'ated into the plan document. 4 t After you have had an opportunity to review the cursory decontamination / decommissioning plan, if you have further questions, do not hesitate to ) contact me.- Since the implementation of the financial accumulation is'very important.to Battelle we.will.be happy to meet with you and/or others at NRC~to' clarify further points. If necessary we can probably'also arrange l Efor a representative from DOE to be present. i As I envision it now, if the data provided is sufficient to justify NRC's recognition of~the plan as a desirable concept (not necessarily a solution -to all the anticipated licensing requirements)., a letter from you to DOE ~ would.be in~ order. Any reservations you have regarding the assumptions incorporated in the plan co'uld be outlined if we are unable to work them out before-hand. a 0 f J , - _. <. -- 6 J m -1..._,, -r, ,e_,.,...

.y _- 1., l. b"5 Q..e Mr. Robert Kratzke - 3 December 15, 1978 I w'111 call you in a few days to discuss any further input you need from -us. Sincerely, . Roger.K. Ballard - Manager - Research Finance .RKB:dc Ecclosure cc: Mr. James Buchar - Contracts Management Office U.S. Department of Energy Chicago Operations Office 9800 South Cass Avenue Argonne, Illinois 60439 4 t 8 e

s., O d MO

• [%* g~ d:!umbus Ltborat: ries RECDDEC 2 7 )377

~ ""^ s.J.B. Ercun, Jrg j R.W..Klingensmith i ~ ' December 27,.1977

ost, Ta K.C. Brog i

R.W. Klingensmith' from Estimate of Effort Required to Totally Decontaminate subject The Battelle Hot Laboratory ~ to the inquiry by NRC regarding costs and efforts involved to decontaminate In f.monse the battelle Hot Laboratory the following first-order analysis has been made. To a large degree the cost and effort involved in decontaminating the Hot Laboratory are dependent upon the levels to.which the various compon6nts are to be decontaminated. On this Lasis, the' analysis made assumes a decontamination level equivalent to permitting use of the Laboratory building for non-radiation oriented research purposes. Facility Componerits Ois the basis of existing operational contamination levels the Hot Laboratory facility is licensed to permit three levels of area contamination; non-contaminated areas, suspect areas, and contaminated areas. In non-contaminated areas _ there is no air-borne radioactive particulate, no smearable - contamination on.any surface and the radioactive background is less than 1.0 mr per hour. Non-contaminated areas in the Laboratory include the operating areas of the cells, locker and restrooms, photographic darkroom, boiler room, machine shop, personnel monitoring stations, support laboratories, storeroom, offices and conference room areas. Decor >tamination required in these areas will be ninimal. areas are defined as work atcas in which the radiation level?may usually be 1.0 Suspect to 2.0 cr per hour i.e., slightly above the normal background of the non-contaminated ~These areas include the high bay area which contains the truck bay,. the storage areas. pool and the associated transfer area, the high energy cell entry vestibule (cash washdown room), and the top of the high energy cell. The Laboratory back loading dock is also considered a suspect contaminated area. Decontamination of suspect contaminated areas would require moderate effort. 9 e

(.

. p

.. e. 9 ,e HDIORANDUM TOi: K.C. Brog FROP.: R.W. Klingensmith 2 December 27, 1977 Contaminated areas are those areas in which radioactive or contaminated materials are routinely handled dir&ctly.' These areas include the interiors of the hot cells themselves, the control areas which provide personnel and equipment access to the cells, the contaminated equipment storage area,, the radioactiv;e material dry storage tubes, and the liquid waste evaporator room. Decontamination of contaminated areas and components would require s maximum effort. Decontamination Operations By f ar, the greatest effort would be required in the decontamination of the high and low level cell interiors and the dry storage tubes. These facilities since the early 1950's have been directly exposed to air-borne radioactive particulate matter generated by the cutting and handling of exposed fuel from high burnup fuel rods and other materials with high specific radioactivity content. The high' energy cell and th'e mechanical test cell similarly are exposed to h'ighly contaminated and radioactive materials but cutting and other destructive handling operations are not performed in these two cells. They are therefore more easily Escontaminated then the high and low level cells. The same is true for the access control areas.to the ec11s and the' contaminated equipment storage room. Nevertheless, a maximum ef fort would be required to des ontaminate these components. - The alpha-gamma and metallographic cells are highly contaminated due to the extensive amount of metallographic grinding and polishing uhich takes place. Each of these cells is an individual stainless steel box which would have to be removed, decontaminated and disposed of. Contaminated Ecuipment Within the Hot Cell Laboratory are many pieces of specialized laboratory equipment. Effective decontamination of such equipsent wo61d be virtually impossible due to individual complexity. This equipment includes approximately 60 manipulators and more than 100 pieces of major laboratory equipment. Handling and preparation of this equipment for disposal vould require a major effort. e b e L

~ HEMORANDUM 1 , ',, 3 ' ~,TO: K,C, Br:g D:e nb r 27, 1977 3 FROM: R.ti. Kling:rWdith f N Uaste and Scrap Disoosal f It han been assumed that tot'al decontamination of the f acility vould not Because of its include the disposal 'of fuel or other SNM natcrials., accountability, this naterial would'be disposed of under governe-nt or Exclusive of these materials, a total industrial project control. decon'tami:;ation of the Hot Laboratory would generate a vast amount' of vaste. and scrap materials uhich would have to be disposed of by availabic means. In addition to generated vaste and scrap, the transfer and stora contains approximately 250,000 Its disoosal vill require a najor effort. water. l' J' Effort and Costs Based upon experience at the Battelle Research Reactor,'and estimates made for 'the Battelle Plutonium Laboratory, it is.cstimated that decontamination of the Battelle Hot Laboratory would require a two year time period and anT expenditure of $2.5 million. million for non-fudad vaste and scrap disposal and $0.5 million for the v disposal,of contaminated water. If these funds are to be generated over the life of the racility, the'y ~ be given consideration at this time. of project generated overhead funds into escrow or to plac=. en add burden on all research projects.In order to remain co petitive any ndded burden That is, non-contaminating projects e.g. mechanical costs. i assessed equitably. properties evaluation of reactor pressure vessel cate examination. These actions would effect sponsor costs and BCL's competitive position . thereby requiring careful planning. b RWK/1r 4 d 4 1; 3 i 1 L L

6 u.,,, .7T, OBattelle ID Columbus Laboratories l' .) pO(lf>,. " 503 King Avenue / *. g it,s. s .\\ Columbus, Ohio 41201 , 'c Q ~*9 Telephone (614) 424-6424 Telen 24-54* 4 t '0 "\\(A t, P F' November 22, 1978 , q,, ,,g N' M/ t, RfCCb s aW M 0 W. 7 N

• h Mr. Robert Kratzko

/ Fuel Reprocessing and Recycle Bronch p Ludas bededs jf[tj g Office of Nuclear Material Safeguards r ' p aerus j/ and Security is U.S. Nuclear Regulatory Commission p Washington, D.C. 20555 e' e

Dear Mr. Kratzke:

Docket 70-8: Supplement to License No. Stat-7 This will follow up our telephone conversation of Novembee 21, 1978, regarding the Battelle-Columbus Financial Plan for future decontamination of our nuclear facilities. EnclosedforyourreviewisFinancialPla/ n for Decommissioning of the BCL Contaminated Facilities. This plan has also been submitted to the DOE Chicago Operations Office in connection with our nuclear activities conducted under DOE-BCL Contract W-7405-ENG-92 We trust this financial plan will satisfy the Imc licensing requirements for the decontamination and decot=nissioning of the BCL licensed facilities. Your early evaluation and concurrence with our plan is appreciated. l Very truly yours,

• $w 2-e llarley L. Toy NRC Licensing Coordinator IILT:1ba

?'wica 7723,c nm ,,d q If /A d'!*// 7/ s-*> cc: Mr. Jim Buchar Contracts Management Office U.S. Department of Energy Chicago Operations Office d;'! j 9800 South Cass Avenue Argonne, Illinois 60439 gg.aJY$37Z

.c . m --- 7 [, t (,. ATTACHNENT A G ,,... i ,g .4 FIN NCIAL PLAN FOR DECOMMISSIONING OF THE BCL CONTAMINATED FACILITIFS 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 decontamination, 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 decontanination costs. Projections of real growth in volume of 5% for the e first 10 years and 2% thereafter. Research volume' (excluding fee) will be $1',900,000 e in 1978. e A' cime f rame of 20 years for accumulation of the fund. e 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,omputations 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 nechanism for accumulation of funds to cover an eventual liability. It does not reduce w ,*e

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s _

2 (.. .the total liability of'any party except to the extent of the assets available in the fund. In the event excess funds are avaiiable at the time of decon-tamination, that portion contributed by the Covernment will be returned. The Covernment share of any excess contributions will be determined in proportion to the initial contributions and timing of receip'ts.'*" O J e t 4

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D / M -v % - V .c...... t y,. t- ' ),,. o *$ L,_ ANALYSIS OF REQUIRED FUNDING RATE FM NUCLEAR DECONTAMINATION RESERVE ($s in thousands)- Projected' Projected Inteme Research Research 6% + 6% Volume ** Burden Earnings Year _ Volume *___ 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 3,610 215 485 510 1985 2,675 4.020 240 1986 2,805 4,475 270 545 1987 2,950 4,980 300 570 1988 3,095 5,540 330 590 4 1989 '3,155 5,990 360 610 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 $1'22,130 ,$7,320 $11,265++ Fund at 6% Rate = 5866g = 5.97%

• Constant.(1978) dollars.
  • Current (inflated) dollars assuming 6% inflation.

+ Assumes only 50% of projects v111' have burden applied during 1979. 4+ Future need (current dollars) = $3,500 (1.06)20..$11,225. 9 6 I_}}