ML20055H037

Decommissioning Funding Plan

ML20055H037
Person / Time
Site:	Framatome ANP Richland
Issue date:	07/31/1990
From:	SIEMENS POWER CORP. (FORMERLY SIEMENS NUCLEAR POWER
To:
Shared Package
ML20055H036	List: ML20055H035 ML20055H037
References
NUDOCS 9007250092
Download: ML20055H037 (63)

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\\djj ADVANCED NUCLEAR FUELS CORPORATION I

DECOMMISSIONING FUNDING PLAN g

LICENSE NO. SNM-1227 l

DOCKET NO. 70 1257 I

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JULY 1990

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i INTRODUCTION This Decommissioning Funding Plan (DFP) is suort Med in compliance with _10 CFR 70.25(c)(2)

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and contains the Information required by 10 CFR 70.25(e). The method for furnishing financial assurance that funds are available at decommissioning time is a parent company guarantee.

.This DFP was compile us ng the anuary 1990 draft of NUREG 1336 for guidance, and is based d

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upon numerM v rsultations with various members of the NRC staff. This DFP consists of four.

r parts: ' Deocarnssioning Criteria and Procedures, Decommissioning Cost Estimate, Cost Estimate Adjustment Schedule, and Financial Assurance Instruments.

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E DECOMMISSIONING FUNDING PLAN ~

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Decommissioning CrNorla and Procedures S

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Decommissioning Cost Estimate Cost Estimate Summary

~ Table 1 Planning, Administration and Project Management Table 2 an Table 3.1

. Unit Cost for Workers

• Dimensions of Contaminated Facir.hes and Components Table 3.2 Man-Hours. and Cost Summary for Decon/ Dismantle of Table 4.1 Contaminated Facilities, Equipment and Soll Man-Hours and _ Cost Surame.a/ for Decon/ Dismantle of Table 4.2 Contaminated Facilities, Equipment and Soll Man Hours ' and Cost Summary for Decon/ Dismantle of

- Table 4.3 Contaminated Facilities, Equipment and Soll.

Man Hours-and Cost Summary for Decon/ Dismantle of Table 4.4 Contaminated Facilities, Equipment and Soll h.

Material, Supplies and Safety Equipment Table 5

- Disposai Boxes for Packaging Radioactive Waste y

Tabit 6 Restoration of Contaminated Areas Equipment Rental and Other Table 7 Subcontracted Work Shipping and Disposal of Radioactive Waste Table 8 C.'

Cost Estimate Adjustment Schedule D.

Financial Assurance instruments 1.

Letter from the Chief Executive' Officer of Advanced Nuclear Fuels Corporation.

2.

Letter from the Chief Financial Officer of Siemens Corporation,

g 3.

Guarantee from Siemens Corporation.

J 4.

Standby Trust Agreement between Seattle First National Bank and Advanced Nuclear Fuels Corporation.

5.

Auditor's Special Report by Price Waterhouse.

6.

Extract from the minutes of the Board of Directors of Advanced Nuclear Fuels Corporation.

7.

Advanced Nuclear Fuels Corporation - Certificate sts to Signature.

8.

Siemens Corporation - Certificate.

9.

Siemens Corporation - Certificate as to Signature.

10.

Siemens Corporation - Certification 1'

11.

Seattle First National Bank - Certificate e.s to Signature.

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DECOMMISSIONING CRITERIA AND PROCEDURES i

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il DECOMMISSIONING CRITERIA 1

l The decommissioning plan for Fuel Fabrication facilities located at 2101 Horn Rapids Road, L

Richland, Washington, License No. SNM-1227, Docket No. 70-1257, has been prepared to meet the guidelines and requirements a specified in Guidelines for Decontamination of Facilities and i

Equipment Prior to Release for Unrestricted Use or Termination of Licenses for By Product, Source or Special Nuclear Material,' U.S. Nuclear Regulatory Commission, May 1987, l

Uncontaminated Facilities.

l The disposition of uncontaminated equipment and facilities is not within the scope of this plan,-

l provided that such facilities are verified to be uncontaminated in accordance with approved radiation survey procedures, l-

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Residual Radiation Levels The residual contamination levels in decontaminated facilities to be unconditionally released shall j.

be within the values given in the guidelines mentioned in the opening paragraph. Any equipment or facility which cannot be decontaminated to those levels shall be transferred to another i

licensed facility or demolished, packaged and disposed of at a licensed low-level radioactive j

I waste disposal site.

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l Records Records of the decommissioning procedures and results will be preserved for at least five years, j

or as sequired by then current regulations.

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Future Channes The decommissioning plan assumes the availability of a low-level adioactive waste disposal 2

facility at reasonable cost,- and packaging and transportation requirements consistent with 3

existing regulations.

Z Financial Provisions

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. Decommissioning of the ANF feeliity will be conducted at no cost to the public beyond those of y

ordinary regulatory activities.

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GENERAL ASSUMPTIONS

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The following general assumptions were used in the preparation of the Decommissioning Plan and cost estimate for the decommissioning of licensed facilities at the Horn Rapids Plant of ANF.

1.

Prior to the start of decontamination, a detailed decommissioning plan, including a proposed closeout survey plan, will be submitted to the NRC for review and approval.

The closeout survey _ shall be reviewed and approved by NRC prior to release of equipment or grounds to unrestricted use.

s 2.

All work will be performed in full compliance with an approved QA program writter; and established specifically for the decommissioning activity.

3.

All work inside contaminated areas will be performed using approved nealth physics procedures.

4.

Advanced Nuclear Fuels health physic technicians will be available during the entire decommissioning activity.

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3-I' The decommissioning cost of all noncontaminated areas and equipment would either be 5.

offset by their salvageable value or are not of interest to the NRC, and are not addressed.

in this plan and estimate.

I 6.

As a basis for estimating, all decommissioning of the buildings and process equipment would be accomplished within six months and decommissioning of the waste lagoons would be accomplished within one year.

.7.

The costs associated with decontamination of process equipment and ventilation duct 1

work will be greater than the salvage value and, therefore, no attempt at decontamination I

will be made. All contaminated process equipment and duct work will be disposed of by burial in low-level waste disposal sites, and only the facility will be decontaminated.-

l PROCEDURES 1

The following general procedures will be followed in decontaminating each major facility.. Minor

' ancillary facilities such as external docks and grounds where contamination may be found will be decontaminated in a similar fashion, in preparation for decommissioning, detailed procedures will be prepared in accordance with an approved QA program.

UO. Buildina

.1.

All process equipment in the various controlled areas of the building will be surveyed to determine the degree of contamination. Equipment which is below the release !evels of contamination will be disconnected and disposed of on a commercial basis. Equipment which is contaminated to levels above the release levels will be disconnected from the i

4 building services, decontaminated if warranted, and/or wrapped in polyethylene and packaged for shipment. The contaminated equipmont will be either transferred to another licensed facility or a licensed radioactive waste disposal site.

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k, Uquid effluent systems leading from the controlled zones will be treated in the same manner as process equipment in the controlled zones.

Sufficient radiatlon surveys of process equipment outside the controlled zones will be made to assuto that no contamination has spread outside the zones Process equipme~nt outside the controlled zones will be disposed of on a pure commercial basis, a

2.

All exhaust duct work will be treated in a manner similar to the process equipment as described in item 1 above, The final filter bank of the ventilation system wist also be -

disposed of by burial, j

3',

' After removal of all process equipment and exhaust ducting, the facility ceiling and walls will be steam cleaned as necessary.

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' The floors of the controlled areas will be sandblasted in ' order to strip all paint and,

I cleaned using steam and/or solvents, i

5.

A radiation survey will be completed to a prescribed plan to verify that areas are successfully decontaminated.

6.

'.After NRC approval, the entire effected area will be resurfaced as appropriate.

.y Specialty Fuels (SF) Buildina i

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u the Fall of 1985, Advanced Nuclear Fuels successfully decontaminated and decommissioned the PuO, equipment and facility in Room 173 of the SF Building. NRC released the area:from plutonium control and the SWUR facility was installed in the vacated room. The only plutonium remaining in the building is plutonium waste stored

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i in 35 containers. At the time of decommissioning.of the SF Building, or sooner, these J.

containers will be either transferred to another licensed facility or a licensed radioactive g

disposal site for burial.'

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. Decontamination and decommissioning of the SF, Building will be accomplished in a g

B similar manner as the UO, Building.-

Ancillary Facilities in addition to the UO, and SF Buildings, the facilities listed below are all involved with enriched uranium handling and processing in varying degrees, and will therefore, be required to be l decontaminated:

.1.

Engineering Laboratory Operations (ELO) Building 2.

Contaminated Clothing Laundry

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Fuels Storage Warehouse 4.-

Radioactive Material Warehouse 5.

Fuel Cooling Test Facility (FCTF)

' 6.

UF, Receiving and Storage Facility

7. '

Lagoon Uranium Recovery (LUR) Facility 8c l Ammonia Recovery Facility 9.'

Fuel Services Facility -

- The same basic plan as outlined for the UO, Building above will be used in the decontamination

and decommissioning of these ancillary facilities.

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. I Weste Water Lagoons I

1.

The feed lines to the lagoons, as well as all Interconnecting lagoon piping, will be I

removed, wrapped in polyethylene, packaged, and turned over to a licensed radioactive disposal company for burial.

2.

The lagoons will be emptied on a programmed basis, a

3.

After the liquid has evaporated or been disposed of, all residual solids will be packaged and transported to a radioactive burial site.

_4.

The' lagoon liners will then be cut into manageable sections, rolled, wrapped in polyethylene, packaged, and turned over to a licensed radioactive disposal company for burial; 5.

The soll beneath the ' lagoons will be surveyed and any contamination above release limits -

will be excavated and appropriately disposed of.

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DECOMMISSIONING COST ESTIMATE l

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PLANT DECOMMISSIONING TABLE 1 COST ESTIMATE

SUMMARY

LABOR MATERIAL &

DISPOSAL-PAINTING &

BURIAL-

-. TOTAL ~-

MID 1990 U.S. DOLLARS COST SAFETY EO.

BOXES RESTORATION COST COST

'522,600 PLANNING, ADMIN., & PROJ. MGMT.

522,600 UO2 BUILDING 715,300 72,200 180,000 38,000 2,100,000 13,105,500' SPECIALTY FUELS BLDG.

539,400 26,500

' 90,000 10,800 1,050,000

'1,716,700' ANCILLARY FACILITIES 285,200 36,500 30,000 16,000 350,000

-717.700 LAGOONS (See Note) 289,500 53,000 180,000 15,000 2.100,000 2,637,500i SUBTOTALS 2,352,000 188,200 480,000 '

79,800 5,600,000 8,700,000-1

'1,300,000-CONTINGENCY (10,000,000 TOTAL ESTIMATED COST We are anticipating NRC approval of an amendment to the U.S. Ecology license which will allow the bulk burial of ANF's Note :

4 decontaminated lagoon sand. We expect that bulk burial costs will be much lower than that of our normal packaged low 'evel -

waste which has been used in this estimate. We expect that this arrangement could be extended to reduce signifcantly ti e disposal cost of potentialty contaminated soil.

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ADVANCED NUCLEAR FUELS CORPORATION PLANT DECOMMISSIONING

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TABLE 3.2

2. DIMENSIONS OF CONTAMINATED FACILITIES AND COMPONENTS '

DIMENSIONS 60,000 FT3 Pr,cass Equipment (including HVAC) UO2 Building 30,000 FT3 Process Equipment (including HVAC) Specialty Fuels 10,000 eis Process Equipment Ancillary Facilities 60,000 FT3 Lagoons 23,600 Fiz Amount of Floor Space 46,000 eiz I

Amount of Wall Space Note:

Estimate denotes those components to be packaged and disposed of at a low-level wast 6 f

site. Other equipment to be cleaned to release limits.

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3 ADVANCED NUCLEAR FUELS CORPORATION PLANT DECOMMISSIONING TABLE 4.4 MAN HOURS AND COST

SUMMARY

FOR DECON/ DISMANTLE OF CONTAMINATED FACIUTIES, EQUIPMENT AND SOIL HEALTH CONTRACTOR TOTAL iTOTAL TASK ENGINEER PHYSICS LABOR HOURS COST:

4. LAGOONS

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Remove Piping 650 650

'$ 23,000i Remove Liners 3.900 3,900

.. $136,500 -

Excavation and Soit Removal Fixed Price Contract

' $ l 30,000 '

Radiation Suveys 1,425 1,425 7 $ ' 50,000 -'

OA/OC 800 800

$ 50,000 -

L Total 800

- 1,425-4,550 6,775

- ' $289,'500 :

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ADVANCED NUCLEAR FUELS CORPORATION PLANT DECOMMISSIONING TABLE 5 MATERIAL, SUPPLIES & SAFETY EQUIPMENT MATERIAL SAtt:ff SUPPLIES EQUIPMENT TOTAL COST MlD 1990 U.S. DOLLARS 36,200 36,000 72,200 UO2 BUILDING SPECIALTY FUELS BLDG.

13,500 13,000 26,500 18.500 18,000 36,500 ANCILLARY FACILITIES 53,000 53,000 LAGOONS 68,200 120,000 188,200 Note:

Purchased materials, supplies and equipment necessary to accomplish the decontamination and dismantling work.

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PLANT DECOMMISSIONING

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TABLE 7

- l RESTORATION OF CONTAMINATED AREAS

' EQUIPMENT RENTAiL AND OTHER SUBCONTRACTED WORK PAINTING & OTHER MID 1990 DOLLARS RESTORATION UO2 BUILDING 38,000 l

SPECIALTY FUELS BUILDING 10,000 ANCILLARY FACILITIES 16,000 LAGOONS 15,000 TOTAL 79,800 n

NOTE:

l Restoration of all contaminated areas on the site, including the backfilling of lagoons, and grooming and conditioning of facilities so that alternate uses may be conducted.

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ADVANCED NUCLEAR FUELS CORPORATION PLANT DECOMMISSIONING TABLE 8 -

SHIPPING AND DISPOSAL OF RADIOACTIVE WASTE Mid 1990 U.S. Dollars WASTE TYPE BURIAL VOLUME UNIT COST BURBAL' COST-Contaminated Equipment 100,000 FT3 S35/FT3

$3,500,000'.

Contaminated Soil 60,000 FT3 S35/FT3

$2.100,000 i

Total 160,000 FT3

$5,600,000 NOTE:

Burial Costs include transportation to the U.S. Ecology disposal site which is located on the Hanford Reservation. The burial site is twenty miles north of the ANF fuel fabrication plant. '

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I l I ADJUSTMENTS TO SITE SPECIFIC COST ESTIMATE I

The' estimated decommissioning costs detalled in the preceding tables amount to $10,000,000 in mld 1990 dollars. The estimate represents our assessment of the expenditure that wou!d be required to accomplish the described work if it were undertaken in the year 1990.

Financial assurance has been established in the amount of $20,000,000.

Since site decommissioning will occur at an unspecified time in the future, this higher figure allows for escalation factors, such as inflation, changes in facility conditions and changes in expected decommissioning procedures. Considering that a renewal application for License No. SNM-1227 must be submitted 30 days prior to September 30,1992, we would expect the subsequent license renewal to occur in the year 2003.

I Escalation at a compounded rate of 5.5 percent per year would inflate the estimated 1990 costs to $20 million in 2003. This rate compares conservatively with general commodities and labor cost escalation trends, which have averaged in the range of 3 to 4 percent per year during the

-last ten years. Examples of ten year average escalation rates calculated from U.S. Department of Labor, Bureau of Labor Statistics data are shown below:

10-Year Annual Averaoe Producers Price Index - Industrial Commodities 3.0%

Average hourly Earnings - Total Private 3.8%

Average Hourly Earnings - Manufacturing 3.7%

Decommissioning rules specify that licensees who submit decommissioning funding plans are required to adjust cost estimates and associated funding levels " periodically" over the life of the facility. ANF will submit an updated cost estimate with the license renewal application in 1992, and again during the fifth year of the renewed license. This updating pattern will be followed for the life of the facility.

I

r 2-In addition, Siemens Corporation accounting guidelines require all subsidiaries, branches, and ;

l divisions to _ accrue for likely contingent losses. Advanced Nuclear Fuel Corporation has:

established such accruals for its plant and lagoon decommissioning. Each year the accruals are I

reviewed for adequacy. Cost estimates are updated to current year costs by correcting for known changes in labor, materials, disposal and other services rates, regulatory requirements,-

i' and facilities conditions. Financial adjustments, if necessary, are recorded in the company's books. The resulting accrual balances are than subject to annualindependent Price Waterhouse audits, and Siemens Corporation audits performed every other year. ANF's internal audit program will include a requirement to provide timely notification to NRC in case the then current l

l dollar estimates exceed the $20,000,000 financial assurance level.

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July 10,1990 U.S. Nuclear Regulatory Commission ai Fuel Cycle Safety Branch Division of Industrial and I

Medical Nuclear Safety, NMSS Washington, D.C. 20555

[

Attn: Charles J. Haughney, Chief Re, Decommissioning Financial Responsibility I

License No. SNM 1227 Gentlemen:

I am chief executive officer of Advanced Nuclear Fuels Corporation (ANF), a Delaware

' corporation. This letter is in support of ANF's use cf the financial test to demonstrate financial-assurance, as specified in 10 CFR Part 70.

I hereby certify _ that ANF is currently a going concern, and that it possesses positive tangible net worth plus accrued decommissioning costs in the amount of $62,769,000.

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

The fiscal year of ANF ends on September 30.

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

ADVANC NUC 8,FUElyCp ORATION

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., W By (Signature)

Robert B. Stephenson (Name)

President & Chief Executive Officer (Title) l l

- A Siomons Company I

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~SIEMENS July 10,1990 --

I U.S. Nuclear Regulatory Commission

' Attn: Charles J. Haughney, Chief l.

Fuel Cycle Safety Branch Division of Industrial and Medical Nuclear Safety, NMSS Washington, D.C. 20555 Re: Decommissioning Financial Responsibility e

_ License No. SNM-1727 Mr. Haughney:

I am the chief financ'.al officer of Siemens Corporation, a Delaware corporation. Th6 letter is in support of Siemens Corporation's use of the g

financial test to demonstrate financial assurance, as specified in 10 CFR Part g:

70.

I; Siemens Corporation guarantees, through the parent company guaraatee.

submitted to demonstrer compliance under 10 CFR Part 70, the

decommissioning :n the following facility owned and operated by Advanced I_

. Nuclear Fuels Corporation, a subsidiary of Siemens Corporation. The current cost estimate, so guaranteed,is shown for the facility:

Current 1

Name Location Cost of Facility of Facility Estimate Advanced Nuclear Fuels Corporation 2101 Horn Rapids Road License No. SNM-1227 Richland, WA 99352

$20,000,000 Siemens Corporation is not required to file a Form 10K with the U.S.

Securities and Exchange Commission.

The fiscal year of the Siemens Corporation ends on September 30. The figure for the following item marked with an asterisk is derived from Siemens Corporation's independently audited, consolidated financial statements for

_l' the year ended September 30,1989.

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Siemens Corporation 4 '

1301 Avenue of the Americas New Ybrk. New Ybrk 10019 (212) 258 4000 Telex 125199

1 Financial Test: Altemative 11 In thousands of dollars 1.

Decommissioning cost estimate for facility, speaal m

nuclear material license No. SNM-1227.

$20,000 2.

Current bond rating of the most recent issuance of this firm and name of rating service. Siemens Corporation has an active $1.0 bation U.S.

commercial paper program whieb is evrently rated A1+ by Standard & Poor's, and P1 by Moody's.

Ratings are confirmed annually.

3.

Date of issuance of bond 4.

Date of maturity of bond 5.

Tangible net worth plus accrued decommissioning costs

$R90,603 d

6.*

Total assets in United States (required only if less J

than 90 percent of the firm's assets are located in the United States). Note: over 90% of Siemens Corporation's total assets are located in the Uruted NLA y

States.

l Yes No _

7.

Is line 5 at least $10 million?

. X_

8.

Is line 5 at least 6 times line 17 X

9.*

Are at least 90 percent of firm's assets located in the United States? If Not, complete line 10.

X

10. Is line 6 at least 6 times line 1?

NLa 4

• Denotes figure derived ham the Siemens Corporation consolidated

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financial statements for the year ended September 30,1989.

3 1

Page 2 of 3 us Nuc Reg comm

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

Slemens Corporation By _

(Signature)

I Dr. Peter H. Kroener (Name)

I Vice President and Controller I

(Title) i I

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GUARANTEE

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I Guarantee made this 10th day of July,1990 by Siemens Corporation, a corporation organized under the laws of the State of Delaware, herein referred to as

• Guarantor," to the U.S.

Nudm Regulatory Commission (NRC), obligee, on behalf of our subsidiary Advanced Nuclear Fuels Corporation (" Licensee") of 155108th Avenue, N.E., Bellevue, Washington 98009.

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Recitals

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1.

The Guarantor has full authority and capacity to enter into this guarantee under its l

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bylaws, articles of incorporation, and the laws of the State of Delaware, its state of incorporation. Guarantor has approval from its Board of Directors to enter into this guarantee.

2.

This guarantee is being issued to comply with regulations issued by the NRC, an agency

^8 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, Part 70 which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Part 70 provide assurance that fundo will be available when needed for required decommis.ioning activities.

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This guarantee is issued to provide financial assurance for decommissioning activities for 3.

Advanced Nuclear Fuels Corporation's Richland, Washington facility as required by 10 CFR Part 70. The current decommissioning cost etimates for which are as follows:

$20,000,000 4.

The Guarantor meets or exceeds the following financial test criteria pursuant to Paragraph A.2 of Appendix A of 10 CFR 30 and agrees to comply with all notification requirements i

as specified in 10 CFR Part 70.

_I

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The Guarantor shall meet the following financial test:

i (i)

A current rating of ita U.S. commerolal bond paper program of A1 + by Standard f

and Poor's, or P1 by Moody'6; and l

(ii)

Tangible not worth is at least $10 million and at least six times the current I

I decommissioning cost estimate (or prescribed amount if a certification is used);

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and J

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Assets located in the United States amounting to at least 90 percent of its total assets c.t at least six times the current decommissioning cost estimate (or.

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prescribed amount if certification is used),

5.

The Guarantor has majority control of the voting stock for the following Ucensee covered j

by this guarantee.

Advanced Nuclear Fuels Corporation 2102 Horn Rapids Road j

Richland, Washington 99352 f

SNM 1227 1

6.

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

I 7,

For value received from Ucensee, and pursuant to the authority conferred upon the Guarantor by the unanlmous resolutio'1 of its directors, a certified copy of which is

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attached, the Guarantor guarantees to the NRC that if the Ucensee falls to perform tne roquired decommissioning activities, as required by Ucense No, SNM-1227, the Guarantor

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shall I

(a) carry out the required activities, gr I

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(b) set up a trust fund in favor of the above identified beneficiary in the amount of these current cost estimates for th ** activities.

8.

The Guarantor agrees to submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule annually within 90 days of the close of the parent Guarantor's fiscal year.

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9.

The Guarantor agrees that if, at the end of any fiscal year before termination of this guarantee, it falls to meet the financial test criteria, the Ucensee shall send within 90 days

)

I of the end of the fiscal year, by certified mall, notice to the NRC that the Licensee intends to provide alternative financial assurance as specif:ed in 10 CFR 70. Within 120 days after I

the end of the fiscal year, the Guarantor shall establish such financial assurance if the i

Ucensee has not done so.

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10.

The Guarantor also agrees to notify the beneficiary promptly if the ownership of the

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Ucensee or the parent firm is transferred and tv maintain this guarantee until the new parent firm or the Ucensee provides alternative financial assurance acceptable to the beneficiary, 11, The Guarantor agrees that within 30 days after it determines that it no longer meets the financial test criteria or that it is disallowed from continuing as a guarantor for the facility under License No. SNM 1227, it shall establish an alternative financial assurance as specified in 10 CFR Part 70 in the name of Ucensee unless Ucensee has done so, 12.

The Guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: 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 activities, or any l

other modification or alternation of an obilgation of the Ucensee pursuant to 10 CFR Part 70,

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l, 13.

The Guarantor agrees that all bound parties shall be jointly and toverally liable for all litigotion costs incurred by the beneficiary NRC in any successful effort to enforce the agreement against the Guarantor.

I 14.

The Guarantor agrees to remain bound under this guarantee for as long 30 Licensee 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 seding notice by certified mail to the NRC and to Licensee, such cancellation to become effective I

no earlier than 120 days after recolpt of such notice by both the NRC and Licensee as evidenced by the return receipts, s

15.

The Guarantor agrees that if Licensee falls to provide alternative 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 Licensee from the Guarantor, the Guarantor shall provide such alternative financial assurance in the name of Licensee or make full payment under the guarantee, 16.

The Guarantor expressly walves the notice of acceptance of this guarantee by the NRC or by Licensee. The Guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications r

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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l 1 hereby certify that this guarantee is true and correct to the best of my knowledge.

I Effective date: July 10.1990 I

SIEMENS CO ORATION i

By' (Signature)

,I Krister Willgren (Name)

Deputy Treasurer (Title)

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(Signature) i I

i Richard S. Payne (Name) 3 I

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STATE OF NEW YORK

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COUNTY OF NEW YORK

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i on this 10th day of July, 1990, before me personally appeared RICHARD PAYNE and KRISTER WILI4REN, to me known and known to me to be, respectively, the Vice President, Taxes, and l

the Deputy Treasurer of SIEMENS CORPORATION and the persons who i

executed the foregoing instrument, and they duly acknowledged to me that they executed the same, respectively, as such Vice Presi-dent and Controller, and as such Deputy Treasurer, as aforesaid, I

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comensaten twires september %1.a I

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4 STANDBY TRUST AGREEMENT TRUST AGREEMENT, the Agreement entered into as of July 10,1990 by and between Advanced Nuclear Fuels Corporation, a Delaware corporation, with its principal place of business at 155108th Avenue, N.E., Bellevue, WA. 98009 herein referred to as the " Grantor," and Seattle First National Bank, the " Trust 6e."

WHEREAS, the U.S. Nuclear Regulatory Commission (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, has promulgated regulations in Title 10, Chapter i of the Code of Federal Regulations, Part 70. These regulations, applicable to the Grantor, require that a holder

)

of, or an applicant for, a Part 70 license provide assurance that funds will be available when needed for required decommissioning activities; and WHEREAS, the Grantor has elected to use a parent guarantee to provide all of such I

financial assurance for the facilities identified herein; and I

WHEREAS, when payment Is made under a parent guarantee, this standby trust shall be used for the receipt of such payment; and I

i WHERSS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee; f

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

Section 1.

Definitions As used in this Agreement:

1 (a) the term " Grantor" means the NRC licensee who enters into this Agreement and any successors or assigns of the Grantor.

I (b)

The term " Trustee" means the trustee who enters into this Agreement and any successor Trustee.

' I

Section 2.

Costs of Decommisaloning This Agreement pertains to the costs of decommissioning the materials and activities identified in Ucense Number SNM 1227 issued pursuant to 10 CFR Part 70 as shown in Schedule

' A.

Section 3.

Establishment of Fund The Grantor hereby establishes a standby trust fund (the Fund) for the benefit of the NRC.

The Grantor and the Trustee intend that no third party have access to the Fund except as provided herein.

Section 4.

Paymenta Constituting the Fund Payments made to the Trustee for the Fund shall consist of cash, securities, or other liquid assets acceptable to the Trustee, The Fund is established initially as consisting of the property, which is acceptable to the Trustee, described in Schedule B attached hereto Such I

property and any other property subsequenty transferred to the Trustee are referred to as the

" Fund," together with all earnings and profits thereon, less any payments or distributions made I.

by the Trustee pursuant to this Agreement. This Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of the Fund, nor any duty to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the

NRC, Section 5.

Payment for Required Activitica Specified in the Plan Except as provided in Sections 9 and 13 hereof, the Trustee shall make payments from the Fund to the Grantor upon presentation to the Trustee of the following:

I a.

A certificate duly executed by the Secretary of the Grantor attesting to the occurrence of the events, and in the form set forth in the attached Specimen Certificate, and I

b.

a certificate attesting to the following conditions:

2-

I' (1) that decommissioning is proceeding pursuant to an NRC-approved plan.

(2) that the funds withdrawn will be expended for activities undertaken pursuant to that Plan, and I

(3) that the NRC has been given 30 days' prior notice of Grantor's Intent to whhdraw funds from the escrow fund.

The total cumulative withdrawal from the fund cannot exceed ten percent of the outstanding balance of the Fund or two million dollart, whichever is p eater unless NRC approval is attached.

I In the event of the Grantor's default o: Inability to dkeet decommissioning activities, the Trustee shall make payments from the Fund as the NRC shall direct, in writing, to provide for the I

payment of the costs of required activities covered by this Agreement. The Trustee shall reimburse the Grantor or other persons as specified by the NRC, or State agency, from the Fund I

for expenditures for required activities in such amounts as the NRC, or State agency, shall direct In writing. In addition, the Trustee shall refund to the Grantor such amounts as the NRC specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.

Section 6.

Trust Management The Trustee shcIlinvest and reinvest the principal cnd income of the Fund and keep the Fund Invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of this section. In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like l

character and with like alms, except that:

(a)

Securities or other obligations of the Grantor, or any other owner or operator of the facilities as specified by the Grantor in writing from time to time, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15

'l 3

i U.S.C. 80a 2(a)), shall not be acquired or held, unless they are securities or other obligations of the Federal or State government; l

(b)

The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to the extent insured by an agency of the Federal government; and (c)

For a reasonable time, not to exceed 60 days, the Trustee is authorized to hold l

uninvested cash, awaiting investment or distribution, without liability for the payment of interest thereon.

Section 7.

Commingling and Investment The Trustee is expressly authorized in its discretion:

(a)

To transfer from time to time any or all of the assets of the fund to any common, I

commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled I

with the assets of other trusts participating therein; and (b)

To purchase shares in any investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), including one that may be created, managed, underwritten, or to which investment advice is rendered, or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.

Section 8.

Express Powers of Trustee Without in any way limiting the powers and discretion conferred upon the Trustee by the

[

other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:

(a)

To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale, as necessary for prudent management of the Fund; I

I 4

l (b)

To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or t

appropriate to carry out the powers herein granted; (c)

To register any securities held in the Fund in its own name, or in the name of a nominee, and to hold any security in bearer form or in book entry, or to combine i

certificates representing such securities with certificates of the same issue held by tho Trustee in other fiduciary capacities, to reinvest interest payments and funds from matured and redeemed instruments, to file proper forms concerning securities held in the Fund in a timely fashlon with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even though, when so deposited, such securities may be merged and held in bulk in the name of the nominee or such depository with other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the U.S. Government, or any agency or instrumentality thereof, with a Federal Reserve bank, but the books and records "g

of the Trustee shall at all times show that all such securities are part of the Fund; g

(d)

To deposit any cash in the Fund in interest-bearing accounts maintained or I

savings certificates issued by the Trustee, in its separate corporate capacity, or in any other banking institution affiliated with the Trustee, to the extent insured by an agency of the Federal government; and l

(e)

To compromise or otherwise adjust all claims in favor of or against the Fund.

I Section 9.

Taxes and Expensea All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund. All other expenses L

incurred by the Trustee in connection with the administration of this Trust, including fees for legal services rendered to the Trustee, the compensation of the Trustee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid from the Fund.

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Section 10.

Annual Valuation P

After payment has been made into this standby trust fund, the Trustee shall annually, at -

least 30 days before the anniversary date of receipt of payment into the standby trust fund, fumish to the Grantor and to the NRC a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. The failure of the Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and the NRC, or State agency, soall constitute 6 conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the statement.

Section 11.

Advice of Counsel The Trustee may from time to time consult with counsel of its choice, who may be counsel I

to the Grantor, with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent permitted by law, in acting on the advice of counsel.

Section 12. Trustee Compensation The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing from time to time with the Grantor. All statements rendered by the Trustee shall be forwarded to the Grantor at its address first above written.

f Section 13.

Successor Trustee Upon 90 days notice to the NRC, the Trustee may resign; upon 90 days notice to NRC and the Trustee, the Grantor may replace the Trustee; but such resignation or replacement shall L

not be effective until the Grantor has appointed a successor Trustee and this successor accepts the appointment. The successor Trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the successor Trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor Trustee the funds and properties then constituting the Fund. If for any reasor the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent m

7 j

jurisdiction for the appointment of a successor Trustee or for instructions. The successor Trusteo shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the NRC or State agency, and the present Trustee by certified mall 10 days before such

(

change becomes effective. Any expenses incurred by the Trustee as s result of any of the acts contemplated by this section shall be paid as provided in Section 9.

Sectio.; 14

!nstructions to the Trustee All requests and instruments by the Grantor to the Trustee shall be in writing, signed by such persons as are signatories to this Agreement or such other designees as the Grantor may designate in writing. The Trustee shall be fully protected in acting without inquiry in accordance with the Grantor's requests and instructions. If the NRC or State agoney issues requests or instructions to the Trustoe these shall be in writing, signed by the NRC, or Stato agency, or their designoos, and the Trustoo shall act and shall be fully protected in acting in accordance with such requests and instructions. The Trustee shall have the right to assume in the absence of I

written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor, the NRC, or State agoney, or their designeos, I

horounder has occurred. The Trustee shall have no duty to act in the absence of such requests and instructions from the Grantor and/or the NRC, or Stato agency, or their designees, except I

as provided for nerein.

Section 15.

Amendment of Agreement This Agreement may be amended by an instrument in writing executed by '.no Grantor, the Trustee and the NRC, or State agency, or by the Trustee and the NRC or Stat., agency, if the Grantor ceases to exist.

Section 16.

Irrevocability and Termination Subject to the right of the parties to amend this Agreement as provided in Section 15, this trust shall be irrevocable and shall continue until terrninated at the written agreement of the Grantor, the Tructoe, and the NRC or Stato agency, or by the Trustee and the NRC or State agency, if the Grantor ceases to exist. Upon termination of the trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor or its successor. __

Section 17.

Immunity and indemnincation The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this trust, or in carrying out any directions by the Grantor, the NRC, o state agency, issued in accordance with this Agreement, and shall have only those responsibilities set forth in this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from the trust fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor f alls to provide such defense.

I Section 18.

Choice of Law I

This Agrooment shall be administered, construod, and enforced according to the laws of the Stato of New York.

I Section 19.

Interpretation and Severability A: used in this Agreoment, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each section of this Agreement shall not affect the interpretation or the legal officacy of this Agreement. If any part of this Agrooment is invalid, it shall not affect the romaining provisions which will remain valid and enforceable.

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l IN WITNESS WHEREOF the parties have caused this Agreement 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.

ATTEST:

ADVANCED NUCLEAR FUELS CORPORATION m/

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(Signature) dvh I 3

[+. m (Name)

<*0[*ic4 Und bevb Cb.,-

(Title)

I ATTEST:

SEATTLE FIRST NATIONAL BANK I

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(Signature) i v

n a e-c,nu, nua,a vw n) os,n (Name (Title)

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I STATE OF WASHINGTON)

)ss.

COUNTY OF KING

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/ _ day of I' /b /, t,990, before rne, a notary public in and for the county On this and state aforesaid, personally appenred.' we ) d/>< ax an(she/he did depose and say I

thaQhe/he is the l'as f rh, ez'sNN\\\\\\ Wig attle First NatI6nal Bank, Trustee, which executed the above instrument, that krMws al of said bank; that the seal affixed to such instrument is such corporat[

'o XNg'4.' r,,

edpy order of the, bank; and that she/he signed her/his name ther rder.

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Notary Public.

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I _. _ _ _ _ _ _ _ _ _ - -

l SCHEDULE A This Agreement demonstrates f,nancial assurance for the following cost estimates for the following licensed activities:

COST ESTIMATES U.S. NUCLEAR FOR REGULATORY REGULATORY ADDRESS OF ASSURANCES COMMISSION NAME AND ADDRESS LICENSED DEMONSTRATED BY LICENSE NUMBER OF LICENSEE ACTIVITY _

THIS AGREEMENT SNM-1227 Advanced Nuclear 2101 Horn Rapids Rd.

Fuels Corporation P. O. Box 130 155108th Ave. N.E.

Richland, WA. 99352 Bellevue, WA. 98009

$20.000.000 I

SCHEDULE B AMOUNT

$0 AS EVIDENCED BY N/A I

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i SPECIMEN CERTIFICATE OF EVENTS j

[ Insert name and address of trustee)

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i Attention: Trust Division Gentlemen:

In accordance with the terms of the Agreement with you dated

, I,

, Secretary of [ Insert name of licensee), hereby certify thet the i

following events have occurred:

J 1,

[ Insert name of licensee] is required to commence the decommissioning of its l

facility located at [Insen location of facility) (hereinafter called the decommissioning),

2.

The plans and procedures for the commencement and conduct of the decommissioning have been approved by the United States Nuclear Regulatory Commission, or its successor, on (copy of approval attached),

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3.

The Board of Directors of [ insert name of licensee) has adopted the attached resolution authorizing the commencement of the decommissioning.

4 Secretary of [ Insert name of licensee)

Date i

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CERTIFICATE OF RESOLUTION 1,

, do hereby certify that I am Secretary of [ insert name of l

licensee), a [ insert state of incorporation) corporation, and that the resolution listed below was duly adopted at a meeting of this Corporation's Board of Directors on

,19_.

IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of this Corporation this day of

. 19 _,

I Secretary I

I I

I RESOLVED, that this Board of Directors hereby authorizes the President, or such other employee of the Company as he may designate, to commence decommissioning activities at

[ insert name of facility) in accordance with the terms and conditions described to this Board of Directors at this meeting and with such other terms and conditions as the President shall approve with and upon the advice of Counsel, l

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l July 10, 1990 Dr. Peter H. Kroener i

l Vice President and Controller Siemens Corporation

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1301 Avenue of the Americas

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j New York, New York 10019 1

l Dear Dr. Kroenect

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At your request, we have performed the procedures enumerated l

below with respect to the Siemens Corporation " Schedule Reconciling Amounts Contained in Chief Financial Officer's Letter With Amounts Included in the Consolidated Financial I

Statements for the Year Ended September 30, 1989" set forth in the accompanying Exhibit 1.

Siemens Corporation prepared the information contained in Exhibit I to demonstrate its l 3 financial responsibility under the U.S. Nuclear Regulatory I

- g Commission's financial assurance regulations 10 CFR Part 70, and to assist its wholly-owned subsidiary and licensee, i

l Advanced Nuclear Fuels Corporation (License No. SNM-1227), in

-l complying with such regulations.

i Our arocedures, with respect to the information contained in I

Exhiait I, were as follows:

1. We agreed the amounts entitled " Stockholder's equity" and I

" Intangible assets, net" to amounts reported on the 1

l Siemens Corporation consolidated balance sheet as of September 30, 1989 which is included in the Siemens Corporation consolidated financial statements for the year ended September 30, 1989.

We have previously examined the i

Siemens Corporation consolidated financial statements for j

the year ended September 30, 1989 in accordance with generally accepted auditing standards and have issued our report thereon-dated Novem>er 15, 1989.

2. We agreed the amount entitled " Accrued decommissioning

' l costs" to an amount included in a Siemens Corporation i

prepared schedule.

This schedule analyzes the components of the amount reported as "Other Long Term Liabilities" on the Siemens Corporation consolidated balance sheet as of September 30, 1989 which is included in the Siemens Corporation consolidated financial statements for the year ended September 30, 1989.

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July 10, 1990 Dr. Peter H. Kroener Vice President and Controller Siemens Corporation Page 2 I

3. We determined the arithmetical accuracy of the amounts I

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 plus accrued decommissioning costs" in the July 10, 1990 letter from Dr. Peter H. Kroener, Vice-

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President and Controller of Siemens Corporation, to the U.S. Nuclear Regulatory Commission.

Because the above rocedures are not sufficient to constitute an examination mad in accordance with generally accepted auditing standards, we do not express an opinion on any of the amounts, accounting records or the letter referred to above.

In connection with the procedures referred to above, no matters came to our attention that caused us to believe that the information contained in Exhibit I should be I-adjusted.

Had we performed additional procedures, matters might have come to our attention that would have been reported to you.

This report relates only to the Siemens Corporation " Schedule Reconciling Amount.s Contained in Chief Financiai Of ficer's I

Letter With Amounts Included in the Consolidate 1 Financial Statements for the Year Ended September 30, 1*c'"

set forth' in the accompanying Exhibit I and does not enta.c to any other documents.

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I July 10, 1990 Dr. Peter H. Kroener Vice President and Controller Siemens Corporation I

Page 3 i

It is understood that this report is to be provided by the i

management of Siemens Corporati.on to the U.S. Nuclear Regulatory Commission to com)1y with the financial assurance i

I regulations referred to in t.;e first paragraph of this report.

This report should not be-referred to or distributed 1

for any other purpose without our prior consent.

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Yours very truly, 1

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1 Attachment - Exhibit I I

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A.'

SIEMENS CORPORATION l

SCHEDULE REC.ONCILING AMOUNTS CONTAINED IN CHIEF FINANCIAL OFFICER'S LETTER WITH AMOUNTS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30. 1989

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($ in thousands)

Per Consolidated Per

~ Financial Reconciling Chief Financial Statements Item Officers's Letter

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Stockholder's equity

$1,168,899 Less:

Intangible assets, not 284.0_6.33 Tangible net worth 884,836 Add Accrued I,-

decommissioning costs 5.767 Tangible net worth plus accrued decommissioning

$890.603-costs I

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t iI Extract from the minutes of the I

Board of Directors of Advanced Nuclear Fuels Corporation g

RESOLVED, That the Chairman of the Board, the President or any Vice President or any two Directors jointly, of the Corporation, be and hereby are I

empowered -to execute all papers requiring execution in the name of this Corporation and the Secretary or any Assistant Secretary is authorized to I

afflx the seal of the Corporation to such papers as require the seal and each of said officers and Directors is hereby empowered to acknowledge and I-deliver any such Instruments as fully as 11 such authority were granted in each particular instance; and

- FURTHER RESOLVED, That the resolution of July 31,1972 with respect to the execution of documents be and it hereby is revoked.

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I I, James W Fredericks, Secretary of Advanced Nuclear Fuels Corporation, do heroby certify that the foregoing is a true and correct copy of resolutions duty adopted by the Board of

' Directors of said Corporation on April 24,1978, which resolutions are stillin full force and effect, Witness iny hand and the seal of said Corporation this le day of July,1990.

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,97 Secretary

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ADVANCED NUCLEAR FUELS CORPORATION I

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Certificate as to Signature I

The undersigned, J. W. Fredericks, Secretary of Advanced Nuclear Fuels Corporation, a Delaware corporation, does hereby certify that the person named below has been duly elected to the office in said Corporation Indicated opposite his name below and that the signature appearing opposite his name below is the true signature of such person:

I Name Qiftqt Sionaturg

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/ a R. B. Stephenson President and Chief

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y Executive officer

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4 in Witness Whereof, I have hereunto set my name and affixed the seal of said Corporallon, this te " day of July,1990.

c Secretary I

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SIEMENS CQRPORATION CERTIFICATE I

The undersigned, Adrienne D. Whitehead, DOES HEREBY CERTIFY that she is the duly elected and qualified Secretary of I

SIEMENS CORPORATION, a corporation organized and existing under the laws of the State of Delaware.

I The undersigned DOES HEREBY FURTHER CERTIFi that at-tached hereto marked SCHEDULE A, and hereby made a part hereof, is a true and correct copy of resolutions unanimously adopted I

by the Directors of the Corporation by unanimous written con-sent dated as of May 31, 1989, in accordance with law and the By-Laws of the Corporation, and that said resolutions have not been in anywise amended, annulled, rescinded or revoked and are I

now in full force and effect.

The undersigned DOES HEREBY FURTHER CERTIFY that each I

of the persons named in the list of Directors and Officers of the Corporation, attached hereto marked SCHEDULE B, and hereby made a part hereof, has been duly elected as such Director or officer to the office set forth opposite his name, is duly I

qualified and is now acting as such Director or Officer.

IN WITNESS WHEREOF, the undersigned has affixed her I

signature as Secretary and has caused the corporate seal of the Corporation to be hereunto affixed, this 5th day of July, 1990.

N Adrienne D. Whitehead I

Secretary I

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SCHEDULE A I

RESOLVED, that any one of the following officers of this Corporation -

the President any Vice President I

the Secretary ac+.ing jointly with any other officer of the Corporation, be and they hereby are authorized for, in the name, and on behalf of, the Corporation:

I (A) to 'xecute any loan agreement or other financing arrangement with, and (B) to execute and deliver to any bank, banker, trust company or any insurance company or other corpora-tion, partnership, entity or individual (all hereaf-I ter collectively referred to as " guarantee benefi-claries") undertakings, guarantees or counter-indem-nities to induce such guarantee beneficiaries or any I

of them from time to time to grant credits or over-draft facilities to, or to act as surety for, or to undertake any obligation for the benefit of, or to enter i

'o any contract with:

1)

Siemens Aktiengesellschaft, a corporation of the Federal Republic of Germany, the parent of the Corporation, or 2) any subsidiary of Siemens Aktiengesellschaft; or 3) any employee of Siemens Aktiengesellschaft or any subsidiary of Siemens Aktiengesellschaft; or 4) any person, natural or juristic, for the purpose of assisting such person in financing the pur-chase of Siemens equipment or services from Sie-I mens Aktiengesellschaft or any of its subsidiar-

les, it being understood that " subsidiary" as referred to herein will mean any IcorporationintheSiemensGroupwhosevotingstockishelddirectly or indirectly by Siemens Aktiengesellschaft to the extent of 50% or more.

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I I RESOLVED, that any two of such officers acting as aforesaid be and they hereby are authorized and directed for, in the name and on behalf IoftheCorporation, to take any and all action and execute and deliver any and all documentation which may be deemed necessary and appropriate to give full force and effect to the preceding resolution, the execution and deliv-Ieryofsuchdocumentationtobeevidenceofthefullapprovalthereofby the two officers affixing their respective signatures thereto.

Irespecttoguaranteesshallsupersedetheauthoritypreviouslygrantedwith RESOLVED, that the foregoing delegation of authority with respect to guarantees by written consent of the directors of this corpora-tion dated as of September 1, 1988.

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I SCHEDULE B I

SIEMENS CORPORATION g

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D.1119t9rs I

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Dr. Horst Langer Dr. Karl-H. Baumann

' I Mr. Hermann Franz Mr. Hans-Gerd Neglein Officers I

Dr. Horst Langer Chairman Dr. Karl-H. Baumann Vice Chairman i g Dr. Hans W.

Decker President i g Mr. Thomas E.

Bolas Vice President, Corporate Management Audit Mr. Robert Dumke Vice President, Corporate

- I Development Mr. John A.

Dudley Vice President, Corporate liuman Resources Mr. Walter G. Gans Vice President, General Counsel Mr. Andreas Kley Vice President, Treasurer Mr. Thomas J.

Keller Vice President, Corporate Relations Dr. Peter H.

Kroener Vice President, Controller

- I Mr. Richard S.

Payne Vice President, Taxes Dr. Klaus Selmayr Vice President, Assistant Secretary Ms. Adrienne D.

L?hlLehead Cecretary Mr. Krister W111gren Depu+v Treasurer Er. Charles Herlinger Deputy Ccr.tivile r Mr. Harald Strobl Assistant Contrt,ller

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- l Mr. Kenneth J.

Russell Assistant Secre:ary B

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SIEMENS CORPORATION I

I Certificate as to Signature The undersigned, Adrienne D. Whitehead, Secretary of Siemens Corporation, a Delaware I

corporation, does hereby certify that the person nsmed below has been duly elected to the office in said Corporation indicated opposite his name below and that the signature appearing opposite his name below is the true signature of such person:

Name Office Slanature I

h (j r&d or, reter ii. xroener vice president and controller I

I im w'tmeee w "ereet. ' reve re<eemte eet m v me m e eee ><ixee 1"e eee' ei ee'e Corporation, this fd day of July,1990.

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Secretary I

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' I SIEMENS CORPORATION I

I Certification The undersigned, Adrient,e D. Whitehead, Secretary of Siemens Corporation, a Delaware I

- corporation, does hereby certify that (i) Siemens Aktierg:sellschaft, a corporation of the Federal Republic of Germany, is the owner of all of the voting r,tock oi O!emens Corporation, (ii) Siemens-Corporation is the owner of all of the voting stock cf Siemens KWU, Inc. a Delaware corporation I

- and (ill) Siemens KWU, Inc. is the owner of all of tne voting stock of Advanced Nuclear Fuels Corporation, a Delaware corporation.

in Witness Whereof, I have hereunto set my name and affixed the seal of said -

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' Corporation, this /h*JL day of July,1990.

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Secretar)

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(State.of Washlagton)L (County of. King)

'Ihe undersigned, James B. Gilchrist, Vice President and Manager, Personal Trust Department, appointed to serve as Assistant Secretary of tie Board of Directors, being first duly sworn, deposes and says: 'Ihat he is E

_ an officer of Seattle-First Nauonal Bank (" Bank") as so described; that the attached is a true and correct copy '

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of Bank's Articles of Association amended to June l$,1978, By-laws as amended to October 17,1985, and

General Signature Resolution as amended to September 20,1984, by the Beard of Directors of Bank; that said Articles of Asociation, By laws and General Signature Resolution are in full force and effect and are not in conflict with any other rules or Regulations of Bank; that Tirnothy D. Whitty, Vice President & -

! 3 Manager, Securities Services Department, Signature Group D; and David L. Henwood, Vice President &

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' ' g' Manager, Bond Trustee Services, Signature Group D; and David A. Pringle, Assistant Vice President, -

Signature Group D; Diane C. Moran, Assistant Vice President, Signature Group D; Shiricy D. Young, l

7 Assistant Vice President, Signature Group D; Thomas E. Mann, Assistant Vice President, Signature Group D; Cheryle D. Richardson, Assistant Vice President, Signature Group D; R. Bruce Colwell, Jr.,

.i Assistant Vice President, Signature Group D; Kenneth M. Puro, Assistant Vice President, Signature Group D; Nancy D. Stahl, Assistant Vice President, Signature Group D; Mona E. Yurk, Assistant Vice President, Q

Signature Group D; Jane D. Towery, Assistant Vice President, Signature Group D; Kathleen Gylland, Trust Officer, Signature Group D; Lori Montoya, Assistant Vice President & Manager, Signature Group D; Deborah Saner, Trust Officer, Signature Group D; Mark D. 'Ihomas, Assistant Vice President, Signature W

Group D; Bruce A. Carrick, Trust Officer, Signature Group D; and Debra R. Wight, T r:t Officer,.

,3 Signature Group D; have been duly appointed officers of Bank and are now serving as such. The following g

are their true and genuine signatures.

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E' hrhes B:'Gilchrist, Assistant Secretary

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Subscribed and sworn beforejne

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this., /~7 day of

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EGnda E. Houston, Notary Public

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in and for the State of Washington -

WAS S Yh N.,) A }

-Y Yitnothy h'itty

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Davidl. Henwood j

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,Pi Thomas E. Mann fiavid A.Pringle

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Nancy D.Stahl 'SA muu Kenneth M. Puro.

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