ML20035B158

Forwards Draft Ltrs on Decommissioning Funding Plan & Siemens Annual Rept 92

ML20035B158
Person / Time
Site:	Framatome ANP Richland
Issue date:	03/25/1993
From:	Maas L SIEMENS POWER CORP. (FORMERLY SIEMENS NUCLEAR POWER
To:	Adensam E NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20035B159	List: ML20035B158 ML20035B160
References
NUDOCS 9303310256
Download: ML20035B158 (16)

Text

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SiEMENS g

March 25,1993 U.S. Nuclear Regulatory Commission Fuel Cycle Safety Branch Division of Ini1ustrial and Medical Nuclear Safety, NMSS Washington, D.C. 20555 Attn: Elinor G. Adensam, Chief Re:

Decommissioning Funding Plan License No. SNM-1227 Docket No. 70-1257

Dear Ms. Adensam:

In accordance with our letters to your office dated November 10,1992 and December 14, 1992, we are enclosing the following draft documents that, when executed, can be used pursuant to 10 CFR 70.25 to satisfy Siemens Pcwer Corporation's (SPC) financial'.

responsibility to the U.S. Nuclear Regulatory Commission (NRC) in connection with the decommissioning of the plant located on SPC's property at 2101 Horn Rapids Road,.

Richland, Washington:

1.

Letter from the Chief Financial Officer of Siemens Aktiengesellschaft.

2.

Letter from the Chief Executive Officer of SPC.

3.

Guarantee from Siemens Aktiengesellschaft.

4.

Amendment No.1 to Standby Trust Agreement between Seattle First National Bank ~

and SPC.

5.

. Letter from KPMG Deutsche Treuhand-Gesellschaft.

We are also enclosing an English version of the Siemens Aktiengesellschaft financial statements (Annual Report) for the year ending September 30,1992. Upon confirmation from r

the NRC that the draft documents will satisfy NRC's. statutory and regulatory requirements.

SPC will proceed to obtain signed copies that it will file with the NRC.

.310040 -

f Siemens Power Corporation Nociew Division - Enginwnng and Manufactonng Facility 2101 Hoin Rapids Road. PO Bor 1'40 RcbWod. WA 99352-0130 Tet (509) 375-8100 -

Fax: (509) 375 S402 ~

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PDR ADOCK 07001257-C, PDR

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- March 25,1993 Your timely review of this financial assurance package will be appreciated. If you need further information or would like to discuss this matter with SPC, please contact me at (509) 375-8537.

Very,truly yours, s04 %

W L J. Maas Manager, Regulatory Compliance af Enclosures 4

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DRAFT: 3/25/93 l

i April,1993 U.S. Nuclear R A.ry Commission Fuel Cycle Safe.,

anch Division of industrial and Medical Nuclear Safety, NMSS Washington, D.C. 20555 Attn: Elinor G. Adensam, Chief Re:

Decommissioning Financial Responsibill:y License No. SNM-1227

Dear Ms. Adensam:

I am chief executive officer of Siemens Power Corporation (SPC), a Delawcre corporation.

This letter is in support of SPC's use of th 4 financial test to demonstrate financial assurance, as specified in 10 CFR Part 70.

I hereby certify that SPC is currently a going concern, and that it possesses positive tangible net worth plus accrued decommissioning costs in the amount of $88,122,000.

SPC is not required to file a Form 10K with the U.S. Securities and Exchange Commission.

The fiscal year of SPC ends on September UO.

I hereby certify that the cornent of this letter is true and correct to the t>est of my knowledge.

+

Siemens Power Corporation By (Signature)

I (Name)

(Title)

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DRAFT: 3/25/93 April 1993 U. S. Nuclear Regulatory Commission Fuel Cycle Safety Branch Division of Industrial and i

Modical Nuclear Safety, NMSS Wwdngton, D.C. 20555 Attn: Elinor G. Adensam. Chief Re:

Decommissioning Finanetal Respon.=ibility License No. SNM-122.'

Dear Ms. Adensam:

I am the chief financial officer Samens Antiengesellschaft, a corporation of the Federal Republic of Germany. This lona is m support of Siemens Aktiengesellschaft's use of the financial test to demonstrate financia! assurance, t.s specifiec' :n 10 CFR Part 70.

Siemens Aktiengese:Ischaft guart. nos, through the patent company guarantee submitted to demonstra's compliance under 10 JFR Part 70, the decommissioning of the following facility owned an ' 1perated by Siemens Power Corporation, a subsidia,y of Siemens Aktiengescachaft. TN current cost estimate, so guarar, teed, is show'1 for the facility:

Name of Location of Current Facility F_acility Cost Estimate Siemens Power 2101 Horn Rapids Road S 25,000,0uo Corporation Richland, WA. 99352 License No. SNM-1227

' bmens Aktiengesellscha5, not required to fiie a Form 10K with the U.S. Securities and Exchange Commission.

The fiscal year of Siemene Aktiengesellschaft ends on September 30. The figures for the followir items marked with an asterist: are derived from Siemens Aktiengesellschafs indeper.Jently audited, consolidated financial statements for the year ended September 30, 1992.

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4 Page 2 March 25,1993 Financial Test: Attemative l Amounts in millions 1.

Decommissioning cost estimates for facility, special nuclear material license No. SNM-1227 (total of all cost l

estimates shown in paragraphs above)

$ 25 i

• 2.

Totalliabilities (if any portion of the cost estimates j

for decommissioning is included in total liabilities on your firm's financial statement, deduct the amount of that portion from this line and add that amount to lines 3 and 4)

$ 36.489

• 3.

Tangible net worth" S 14.124

• 4.

Net worth S 14.433

• 5.

Current assets S 33.816

• 6.

Current liabilities

$ 16.549

• 7.

Net working capital (line 5 minus line 6)

$ 17.267

• 8.

The sum of not income plus depreciation, depletion, and amortization S

4.745 i

'9.

Total assets in United States (required only if less than j

90 percent of firm's assets are located in the United States) 5.461 i

Yes No 10.

Is line 3 at least $10 million?

X 11.

Is line 3 at least 6 times line 17 X

12.

Is line 7 at least 6 times line 17 X

13.

Are at least 90 percent of firm's assets located in the United States? If not, complete line 14.

X 14.

Is line 9 at least 6 times line 17 X

(Guarantor must meet two of the following three ratios)

15. '

is line 2 divided by line 4 less than 2.0?

X 16.

is line 8 divided by line 2 greater than 0,17 X

17.

Is line 5 divided by line 6 greater than 1.5?

X

• Denotes figures derived from financial statements.

• • Tangible net worth is defined as net worth minus goodwill, patents, trademarks, and copyrights.

Translation rate applied: 1.41 DM i

I hereby certify that the content of this letter is true and correct to the best of my knowledge.

i Siemens Aktiengesellschaft By (Signature) l (Name)

.l (Title) l

i i

DRAFT: 3/25/93 GUARANTEE Guarantee made this day of April,1993 by Siemens Aktiengesellschaft, a corporation of the Federal Republic of Germany, herein referred to as " Guarantor," to the U.S. Nuclear Regulatory Commission (NRC), obligee, on behalf of Siemens Power Corporation (" Licensee")

of 155108th Avenue, N.E., Bellevue, Washington 98009.

Recitals 1.

The Guarantor has full authority and capacity to enter into this guarantee under its bylaws, articles of incorporation, and the laws of the Federal Republic of Germany, I

its country of incorporation.

2..

This guarantee is being issued to comply with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. The NRC has promulgated regulations in Title 10, Chapter i of the Code of Federal Regulations, Par 170 which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Part 70 provide assurance that funds will be available when needed for required decommissioning activities.

3.

This guarantee is issued to provide financial assurance for decommissioning activities for Siemens Power Corporation's Richland, Washington facility as required by 10 CFR Part 70 and is limited to the maximum amount of the current decommissioning cost r.stimates which are as follows:

$25,000,000 4.

The Guarantor meets or exceeds the following financial test criteria pursuant to Paragraph A.1 of Appendix A of 10 CFR 30 and agrees to comply with all notification requirements as specified in 10 CFR Part 70.

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l The Guarantor shall meet the following financial test:

1 I

(i)

. Net working capital and tangible net worth each at least six times the current i

i decommissioning cost estimates; and l

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(ii)

Assets located in the United States amounting to at least 90 percent of its total.

assets or at least six times the amount of the current decommissioning cost -

j estimates; and

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(iii)

Meets two of the following three ratios: a ratio of total liabilities to net worth less than 2.0; a ratio of the sum of net income plus depreciation, depletion,'-

and amortization to total liabilities that is greater than 0.1; and a ratio of current assets to current liabilities that is greater than 1.5; and i

i (iv)

Tangible net worth of at least $10 million.

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l 5.

The Guarantor (the solo owner of Siemens Corporation that, in turn, is the sole owner

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of Licensee) has sole control of the voting stock for the following Ucensee covered l

l by this guarantee.

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Siemens Power Corporation 2101 Horn Rapids Road i

Richland, Washington 99352 j

SNM-1227 6.

Decommissioning activities as used below refers to the activities required by 10 CFR Part 70 for decommissioning of the facility identified above.

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l 7.

For value receiveu t em Ucensee, and pursuant to the authority conferred upon the l

Guarantor by signatures of its.authcrized officers (a copy of the Public. Notary's Certificate is attached stating that the signing officers are duty authorized to bind the Guwantor), the Guarantor guarantees to the NRC that if the Licensee fails to perform

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the required decommissioning activities, as required by Ucense No. SNM-1227, the Guarantor shall, at its option, (a) carry out the required activities, oLr (b) set up a trust fund in favor of the above identified beneficiary in the amount of these current cost estimates for these activities.

8 The Guarantor agrees to submit revised financial statements, financial test data, and j

a special auditor's report and reconciling schedule annually within 120 days of the close of the parent Guarantor's fiscal year.

9.

The Guarantor agrees that if, at the end of any fiscal year before termination of this 9uarantee, it fails to meet the financial test criteria, the fjcensee shall send within 120 l

i days of the end of the fiscal year, by certified mail, notice to the NRC that' the.

Ucensee intends to provide alternative financial assurance as specified in 10 CFR 70.

Within 150 days after the end of the fiscal year, the Guarantor shall establish such

,r financial ascurance if the Ucensee has not done so.

l 10.

The Guarantor also agrees to notify the beneficiary prompt y if the ownership of the f

Ucenses or the parent firm is transferred and to maintain this guarantee until the new parent firm or the Ucensee provides alternative financial assurance acceptable to the beneficiary.

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11.

The Guarantor agrees that within 30 days after it determines that it no longer meets ~

the financial test ciiteria or that it is disallowed from continuing as a guarantor for the -

l facility under Ucense No. SNM-1227, it shall establish an alternative ' financial.

assurance as specified in 10 CFR Part 70 in the name of Ucensee unless Ucensee l

has done sc.

i 12.

The Guarantor as well as its successors and assignees agree to remain bound jointly and ceverally under this guarantee notwithstanding a,1y or all of the following:

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amendment or modification of the license or NRC-approved decommissioning funding plan for that facility, the extension or reduction of the time of performance of required

.i activities, or any other modification or alternation of an obligation of the.Ucensee.

l pursuant to 10 CFR Part 70.

13.

The Guarantor agrees that all bound parties shall be jointly and severally liable for all litigation costs incurred by the beneficiary NRC in any successful effort to enforce the i

agreement against the Guarantor.

t 14.

The Guarantor agrees to remain bound under this g'uarantee for as long as Ucensee.

must comply with the applicable financial assurance requirements of 10 CFR Part 70, for the previously listed facility, except that the Guarantor may cancel this guarantee by sending notice by certified mail to the NRC and to Ucensee, such cancellation to i

become effective no earlier than 120 days after receipt of such notice by both the NRC and Ucensee as evidenced by the return receipts.

15.

The Guarantor agrees that if Ucensee fails to provide attemative financial assurance as specified in 10 CFR Part 70 and obtain written approval of such assurance from -

the NRC within 90 days after a notice of cancellation by the Guarantor is received by both the NRC and Ucensee from the Guarantor, the Guarantor shall provide such alternative financial assurance in the name of Licensee or make full payment.under-the guarantee.

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16.

The Guarantor expressly waives the notice of acceptance of this guarantee by the NAC or by Ucensee. The Guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and.of amendments or modifications of the license.

17.

If the Guarantor files financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.

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t I hereby certify that this guarantee is true and correct to the best of my knowledge.

Effective date: April

.1993 l

Siemens Aktiengesellschaft I

r By (Signature) i (Name) l (Title) i e

i By (Signature)

(Name)

(Title) t l

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NOTARY'S CERTIFICATE I

i I, the undersigned notary,

. of Munich hereby certify, after having examined today the Commercial Register of the "Amtsgericht"(District Court) of Munich that the company Siemens Aktiengesellschaft is registered under Nr. HRB 6684 and that Mr.

and Mr.

are Prokuristen" (officers authorized to bind the company) and as such entitled to jointly represent the aforementioned company.

Munich, Notary

4 i

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e DRAFT:3/22/93l AMENDMENT NO.1 TO

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STANDBY TRUST AGREEMENT -

l This Amendment No.1 to the Standby Trust Agreement is entered into as of April-

,1993 by and between Siemens Power Corporation, a Delaware corporation, with its principal j

place of business at 155108th Avenue N.E., Bellevue, Washington 98004-5901 herein referred to as the " Grantor," and Seattle First National Bank, the "Trusteo."

I WHEREAS, the Grantor and the Trustee entered into, as of July 10,1990, a Standby Trust

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Agreement that they now wish to amend; and

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1 NOW, THEREFORE, the Grantor and the Trustee agree as follows:

j Section 1.

Change the name " Advanced Nuclear Fuels Corporation"in all places where it appears in the Agreement to "Siemens Power Corporation."

Section 2.

Revise the Cost Estimates For Regulatory Assurances Demonstrated By This

- )

l Agreement in Schedule A'of the Agreement from $20,000,000 to $25,000,000.

IN WITNESS WHEREOF the parties have caused this Amendment No.1 to be executed by-the respective officers duly authorized and the corporate seals to be hereunto affixed and attested as of the date first written above.

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Siemens Power Corporation By i

ATTEST:

(Signature)

- i By (Name) l (Title) l 1

. 1 1

Seattle First National Bank By (Signature)

ATTEST:

(Name)

By

. (Title)

The U.S. Nuclear Regulatory Commission, an agency of the U.S. government, by the execution of this document hereby gives it consent to this Amendment No.1 to the Agreement.

U.S. Nuclear Regulatory Commission By (Signature)

(Title)

(Date) l

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KPNRP DeutscheTreuhand-Gesellschaft s

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. AktiengesellschaftWirtschsttsprOfungsgesellschaft f

Zweigniederlassung Munche6

l Geschaftsanschnft Postanschrift.

Telefon (089) 9280700 i

ElektrastraGe 6 -

Postfach 810529 Telex 523410 l

D-8000 Manchen 81 D-8000 Manchen 81 Telefax (089)92807-800 -

d Telegrarnm Deutschtreuhand 1

DRAFT l

f Mamh..,1993

-6 Siemens Aktiengesellschaft j

Zentralabteilung Finanzen 1

Attn.: Herrn Dr. Seeberg Wittelsbacher Platz 2 j

,t 8000 Munchen 2 j

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Dear Dr. Seeberg,

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i At your request, we have performed the procedures enumera. 'd below with respect to the 1

Siemens Aktiengesellschaft " Schedule Reconciling Amo'un_ts Cou-oned in Chief Financial -

j 2

Officer's Letter With Amounts Included in the Consolidated Financial Statements for the i

Year Ended September 30,1992" set forth,in ths accompanying Exhibit L j

Siemens Aktiengesellschaft prepared the informati6n ' contained in Exhibit I to demonstrate its

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financial responsibility under the U.S. Nuclear Regulatory Commission's financial assurance j

regulations 10 CFR Part 70, and to assist its wholly-owned subsidiary and licensee Siemens'-

-l Power Corporation (formerly.Siemchs Nticlear' Power Corporation) (License No. SNM-1227), in complying _with such regulations.

l On procedures, with respect to the information contained in Exhibit I, were as follows:

~.

1.

We agreed the amounts entitlid " Stockholder's equity" and " Intangible assets, net" to l

amounts reported on_ the Siemens Aktiengesellschaft consolidated balance sheet as of -

September 30,1992 which is included in the Siemens Aktiengesellschaft consolidated financial statements for the year ended September 30,1992. We have previously_

examined the Siemens Aktiengesellschaft consolidated financial statements for'the year

'l ended September 30,1992 in'accordance with German generally accepted auditing i-standards and have issued our repon thereon dated January 5,1993.

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2.

We agreed the amount entitled " Accrued decommissioning costs" to an amount included in a Siemens Aktiengesellschaft prepared schedule. This schedule analyzes the l

components of the amount reported as "other accruals" on the Siemens Aktiengesell-schaft consolidated balance sheet as of September 30,1992 which is included in the

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Siemens Aktiengesellschaft consolidated financial statements for the year ended September 30,1992.

3.

We determined the arithmetical accuracy of the amounts entitled " Tangible net worth" and " Tangible net worth plus accrued decommissioning costs".

4.

We agreed the amount in the column captioned "Per Chief Financial Officer's Letter" to the amount reported as " Tangible net worth" in the March....,1993 letter from Dr. Karl-Hermann Baumann, Chief Financial Officer of Siemens Aktiengesellschaft, to the U.S.

Nuclear Regulatory Commission.

l Because the above procedures are not suaicient to constitute an examination made in accordance with German generally accepted auditing standards, we do not express an of lion -

on any of the amounts, accounting records or the letter referred to above. In connection with i

the procedures referred to above, no matters came to our attention that caused us to believe j

that the information contained in Exhibit I should be adjusted. Had we performed additional procedures, matters might have come to our attention that would have been reported to you.

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t This report relates only to the Siemens Aktiengese11schaft " Schedule Reconciling Amounts Contained in Chief Financial Officer's Letter With Amounts 1ncluded in the Consolidated Financial Statements for the Year Ended September 30,1992" set forth in the accompanying Exhibit I and does not extend to any other documents.

It is understood that this report is to be provided by the management of Siemens Aktiengesellschaft to the U S. Nuclear Regulatory Commission to comply with the financial assurance regulations referred to in the first paragraph of this report. This report should not be referred to or distributed for any other purpose without our prior consent.

i Yours very truly, Attachment - Exhibit I 6

.i EXIIIBIT I I

o-SIEMENS AKTIENGESELLSCIIAFT SCIIEDULE RECONCILING AMOUNTS CONTAINED IN CIIIEF FINANCIAL OFFICER'S LETTER WITII AMOUNTS INCLUDED IN TIIE l

CONSOLIDATED FINANCIAL STATEMENTS FOR TIIE YEAR ENDED SEPTEMBER 30,1992 t

i S in millions Per Per Chief Consolidated Financial Financial Reconciling Officers Statements 11cm Letter i

Stockholder's equity 14,426 Less Intangible assets, net 309 Tangible net worth '

14,117'

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Add Accrued decommissioning cost 7

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Tangible net worth plus accrued decommissioning costs 14,124 t

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