ML20033F730

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Responds to to K Steyer Re Use of Parent Company Guarantee in Combination W/Other Financial Mechanisms. Assuming B&W Fuel Inc Has Controlling Interest in B&W Fuel Co,B&W Fuel Co Can Provide Parent Guarantee
ML20033F730
Person / Time
Site: 07001201
Issue date: 03/19/1990
From: Johnson T
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Gervais J
BABCOCK & WILCOX CO.
References
NUDOCS 9003280180
Download: ML20033F730 (1)


Text

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J. F. Gervais 1

i Chi;f Administrative Officer i

B&W Fuel Company 3315 Old Forest Road i

i P.O. Box 10935 gag g g jggg Lynchburg, VA 24506 0935

Dear Mr. Gervais:

Your March 2,1990 letter to Mr. K. G. Steyer was forwarded to this offic

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response to your questions regarding wnetner a parent company guarantee used in combination with other financial mechanisms.

t all costs associated with decomissioning, regulations is to en The intent of the i

l.icensees affected by the regulations can fulfill their financial obligations through the use of a i

Draf t Regulatory Guidet " Standard Format and Co j

i Mechanisms Required for Decomissioning Under 10 CFR Parts January 1990.

30, 40, 70 and 72 "

3 guarantee but cannot use the guarantee in combination i

metheds(see10CFR70.25(f)(2)).

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It is our understanding that the licensee which is a Delaware General Partnership co,nsisting of two partners.in this partners are B&W Tuel The Fuels, Inc., which own,s the remaining 49%.Inc., which owns 51% of the co Assuming that B&W fuel Inc., has controlling interest in B&W Fuel Company and can pass the financia,l test specified in the regulation, it would be acceptable fur B&W Fuel, Inc., to provide a parent guarantee.

interest in the subsidiary Because a parent needs to have controlling i

to provide the parent guara,nteeit would be unacceptable for Virginia Fuels, Inc.,

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utilize the r,arent company guara. As stated earlier, a qualified licensee can combination with other financial mechanisms.ntee but cannot use the guarantee in Therefore, it would be i

unacceptable for B&W Fuel Inc., to provide a parent guarantee for part of the financial responsibflity and Virginia fuels, Inc., another mechanism for the; remaining financial responsibility, t

Louis Bykoski on (301) 492-0572.If you have any further questions, p i

sincerely, I

t Timothy C. Johnson, Section Leader Decommissioning Section i

Regulatory Branch Division of Low 4

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