ML20055F380
| ML20055F380 | |
| Person / Time | |
|---|---|
| Site: | BWX Technologies, 07000364, 07000824, 07000135 |
| Issue date: | 07/12/1990 |
| From: | Eckert J BABCOCK & WILCOX CO. |
| To: | Haughney C NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| NUDOCS 9007160363 | |
| Download: ML20055F380 (2) | |
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Babcock & Wilcox a McDermott company Defense & Nuclear Power Group J.F, Eckert P.O. Box 11165
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Sr. %ce President and Group Executive Lynchburg, Virginia 24506 1165 s
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(804) 522 5475 July 12, 1990
-l Mr.
C. J. Haughney, Chief Fuel Cycle Safety Branch j
Division of Industrial and Medical Nuclear Safety, NM88 United States-Nuclear Regulatory Commission
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Washington, D.C.
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Re License Number SNM-42,-SNM-145, SNM-414, and SNM-778 Financial Assurance for Payment for 2
Decommissioning Costs.
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l Psar_Mr. Haughneys
- j In a letter dated March-13, 1978, Mr.
- George G.
zipf, ' then PresideP of The Babcock; & Wilcox Company, l
l stated thatLcontinuing assurance of. Babcock &'Wilcox's
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' ability;to pay for the eventual-decommissioning of its H
NRC licenced' facilities would-be provided to you.
.j i-Those assurances, were to include a copy of an L
officer's certificate to - the company's -lenders, under
-j certain Promissory Note. Agreements, that the Company has-i met all restrictive covenants contained in the Note t
Agreements.
As we advised L. C. Rouse in our letter of August 23, 1989, the Company paid beck the amounts owed under the referenced Promissory Note _ Agreements in the 1
fiscal year endedEMarch 31, 1989, and.the restrictive covenants therefora no longer apply and the associated certificates have been discontinued.
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Those assurances also provided that the company i;
would. estimate its cost of decommissioning its nuclear facilities and compare that to the Company's working capital, to. assure that the Company's working captial L
exceeded the estimated cost of decommissioning-its licensed facilities.
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r 4 This yearlthe Company has excluded its estimated
- cost of decommissioning,its Naval. Nuclear Fuel Division (NNFD) f acilities licensed under ~ SNM from its cal-culations-because B&W and'the'U. 8. Department of Energy.
(DOE) have concluded negotietions regarding the means by which DOE will be responsible for the cost of decommis-e sioning B&W's facilities covered by that license.- This-form of. assurance is represented by a. contract clause incorporated in recently awarded and future contracts and
-is the object-of an ' amendment application currently being -
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reviewed by the NRC, and satisfies the financial assur-L ance requirements of new 10 CFR 70.25(f) (2) for the NNFD.
-I am now. certifying that B&Wis estimated costs for
.j decommissioning-its NRC licensed facilities, excluding
.l those covered by. SNM-42, are lower than the Company's working espital, as'of March 31, 1990.
Further, con-Lfirming.our previous correspondence, on July 27, 1990 and thereafter, the Company will provide financial assurance for all of its NRC licens'ad facilities exclusively by.the methods provided foi in the-General Reauirements for Decommissionina Nuclear-Facilities-(53
.j FR 24018) dated June P7, 1988.
very truly yours,
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