ML20034G675
| ML20034G675 | |
| Person / Time | |
|---|---|
| Site: | 07003073 |
| Issue date: | 02/23/1993 |
| From: | Stauter J KERR-MCGEE CORP. |
| To: | Fauver D NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| NUDOCS 9303110002 | |
| Download: ML20034G675 (2) | |
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KERR-McGEE CORPORMION KERR-McGEE CENTER. DKL AHOM A CITY, OKLAHOMA 73125 ENVIRONMENT AND HEALTH MANAGEMENT DIVISION February 23, 1993 Mi.
David Fauver Office of Nuclear Materials Safety & Safeguards s
U.
S.
Nuclear Regulatory Commission Washington, D.C.
20555 Re:
Docket No. 70-3073 i
License No, SNM-1999 Cushing, Oklahoma
Dear Mr. Fauver:
The questions you raised in recent telephone conversations about the volume estimate, the number of shipments for off-site disposal, and the adequacy of the surety fund contingency are addressed herein.
Ootion 2 volume Estimate The December 18, 1992 estimate of 72,000 cubic feet of Option 2 soil is inconsistent with the approximately 123,000 cubic feet of Option 2
soil identified in Attachment 1
of the license application. This discrepancy is a result of inadvertently failing to include the Option 2 soil currently contained in Pit 4.
All the Option 2 soil is planned to be disposed of in an on-site cell.
The cost estimate for increasing the disposal cell capacity to handle the 51,000 cubic foot increase is approximately $31,000.00.
Off-site shipments During 1992, Kerr-McGee Corporation (KMC) shipped 16 of the estimated 20 truckloads of Option 4 material to Chem-Nuclear's disposal facility in Barnwell, South Carolina.
Thus, an estimated 4 loads of Option 4 material remain on site.
KMC is negotiating with another facility for disposal of the remaining loads of Option 4 material and anticipates the disposal costs will be substantially less than the 1992 disposal costs at Barnwell.
After paying all invoices for 1992 shipments, $541,000 of the $678,000 disposal costs listed in the decommissioning funding plan have been spent, and the remaining cost for off-site disposal may be less (per cubic foot) than that estimated in the plan.
s l 9303110002 030223 s.])
U PDR ADOCK 07003073 Q
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t Mr. David Fauver Page 2 February 23, 1993 Surety Fund Contingency Although not explicitly stated in the decommissioning funding
- plan, a contingency of more than 25% currently exists.
The decommissioning funding plan included $678,000 for shipment of Option 4 material.
As noted above, shipping costs for the remaining Option 4
material are expected to be less on a
per-cubic-foot basis.
The 1992 costs for shipping option 4 material averaged $34,000 per load.
With approximately four loads of Option 4 material remaining on site, shipping costs should now be less than $136,000.
The following calculations present a revision of the cost estimate for decommissioning the cushing site.
x
. Original estimate
$2,168,000.00 Increase due to disposal cell expansion
$31,000.00 Subtract original " Pack and Ship" estimate
$678,000.00 Revised " Pack and Ship" estimate 136.000.00 Revised Total Decommissioning Cost
$1,657,000.00 A $2,168,000 surety bond was recently submitted for this decommissioning effort.
The difference between the revised cost estimate and the surety bond is equal to 30% of the revised estimate.
- Thus, the surety bond essentially includes a 30%
contingency.
KMC will not seek reduction in the current surety bond.
KMC believes this information is responsive to the questions you posed over the phone.
If other information is needed, please contact me at (405)270-2623 at your earliest convenience.
Sincerely,
]
A A
L a u A<~-
John C.
Stauter Vice President Environmental Services JCS:lld
.-