ML20059E414

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Explains 1993 Cost Estimate for Regulatory Assurance Reduction,W/Respect to GE Ltr of Credit
ML20059E414
Person / Time
Site: Vallecitos, Vallecitos Nuclear Center
Issue date: 12/02/1993
From: Schindler W
GENERAL ELECTRIC CO.
To: Bernero R
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20059E387 List:
References
NUDOCS 9401110147
Download: ML20059E414 (5)


Text

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GE Nuclear Energy 5-42 December 2,1993 Nir. Robert M. Bernero, Director Office of Nucler Material Safety and Safeguards U. S. Nuclear Regulatory Commission l

One White Flint North Bldg.

11555 Rockville Pike Rockville, Maryland 20852

Subject:

COST ESTIMATE FOR GENERAL ELECTRIC LETFER OF CREDIT,1993 i

Reference:

1) Letter dated August 31,1993, subject CHEMICAL BANK LETTER OF CREDIT, W. H. Schindler to R. M. Bernero, NRC (attached)
2) Letter dated March 22,1993, same subject, W. H. Schindler to R. M.

Bernero, NRC (attached)

3) Attachment, Decommissioning Cost Estimate, Cost Reductions from 1992 to 1993 (attached)

The 1993 cost estimate for Regulatory Assurance relating to GE's Letter of Credit was reduced $1.5M from the 1992 estimate. Following is an explanation for this

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NEW TECHNIQUES Volume reduction techniques have now become cost effective and are used throughout the industry to offset the increasing cost of direct burial. With the significantly increased cos: for Low Level radioactive Waste (LLRW ) disposal, a volume reduction senice industry has emerged offering real disposal cost savings.

Previous decommissioning cost estimates accurately reflected senice available at that time. Volume reduction methods applied to Vallecitos Nuclear Center (VNC) decommissioning represent the basis for the cost reductions taken in the most recent estimates. These volume reduction methods are described below.

CONCFIETE/S0ll WASTE Recent experience indicates a significant portion of the CONCRETE / SOIL WASTE removed at decommissioning will likely be contaminated at very low levels. Disposal at a facility, such as Envirocare in Utah, will now be possible for materials contaminated to picocurie-per-gram levels. Recent experience at ETEC and VNC were taken into account in deriving at the amount of waste that could be assumed to be sent to Emirocare.

Rather than dispose of all the CONCRETE / SOIL WASTE at a LLRW disposal facility such as Beatty, NV, which was the basis for our previous estimate, we now plan to i

send 90 % of this type of material to Envirocare in Utah, and only 10 % of the LLRW would need to be sent to Barnwell, NC (Beatty no longer being available) for disposal. We used $20 per cu ft for disposition at Envirocare (based on an estimate I

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from Envirocare for large volu;nes) and $301 per cu ft for disposition at Barnwell.

Our previous estimate assumed all the CONCRETE / SOIL WASTE was disposed of at Beatty at $88 per cubic foot. With vary large quantities estimated for disposal, we believe the Envirocare unit cost to be conservative.

LSA WASTE We have now estimated that approximately 62 % of the VNC low level radioactive waste resulting from decommissioning activities will be in the form of metals, such as piping, vessels, tanks, pumps, valves, instrument leads, etc. These materials can be more economically dispositioned through volume reduction techniques such as metal-melt. For current decommissioning estimates, this material is assumed to be sent to Scientific Ecology Group at Oak Ridge for metal-melt processing. Cost for the metal melt process are quoted at $1.65 per pound, or based on the density of our shipping containers, about $50 per cubic foot. If we did not use this option, all LSA Waste would have to be sent to Barnwell at a new disposal cost of $293 per cubic foot.

Our previous estimate assumed all LSA WASTE was disposed of at Beatty at $86 per cubic foot. The metal-melt option results in a significant reduction in the cost of disposal when compared to burial at Barnwell.

TOTAL REDUCTION The two above changes in currently available volume reduction technologies result in significant savings potential for decommissioning activities. As a consequence, these alternative methods reduced overall disposal cost when compared to burial at Barnwell.

When we applied the above two processes (burial of 90% of our low level concrete / soil at Envirocare and 62% of our LSA waste going to the metal-melt process at SEG) we reduced out estimated disposal cost of radioactive waste by 10%

over our previous estimate. We have applied the same 10% reduction to each of the licenses / facilities listed below to arrive at our new estimate for 1993. In addition, the

" RESERVE" was reduced from $448K to $30K, for a total reduction from our previous estimate of Sl.5M.

A summary of the changes for the licenses that were effective by incorporating the volume reduction technologies are shown on the attached page. Please advise if I may be of any further assistance.

Very truly yours, j

W. H. Schindler, Manager Government Finance Attachments

1 DECOMMISSIONING COST ESTIMATE COST REDUCTIONS IlETWEEN 1992 AND 1993

($ IN 000'S)

Total LLRW Reduction of Total Decomm.

Reduced Decomm.

Disposal Disposal Deconun.

(1993 est)

Decomm.

(incl. in Total Charges Cost License (1992 est.)

Decomm. 92 est)

(1993 est)

(1993 est)

Rounded (1993 est)

DPR-1

$7,251

$1,570

$157 7,093

$7,100

$151 R-33 879 340 34 846 800 79 TR-1

-13,956 5,203 520 13,440 13,400 556 DR-10 10,896 2,628 263 10,637 10,600 296 RESERVE 448

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TOTAL REDUCTION

$1,5_00_

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DEC 17 A3 03:54AM GE HUCLEAR 408 365 6564 P.2

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GE Nuclear Energy DRA"rT i

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December 17,1995 c m m e ca *.ec an.wcnweon 400 M 6EJC Mr. Robert M. Bernero, Director Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission One White Flint North Bldg.

11555 Rockville Pike Rockville, Maryland 20852

Subject:

COST ESTLMATE FOR GENERAL ELECTRIC LETTER OF CREDIT,1995

Reference:

1) Letter dated December 2,1993, subject Cost Estimate for j

General Electric Letter of Credit, W.H. Schindler to R.M.

Bernero, NRC (attached)

2) Attachment, GE-Vallecitos Nuclear Center Decommissioning i

Waste Summary The 1993 cost estimate for Regulatory Assurance relating to GE's Letter of Credit was reduced

$1.5M from the 1992 estimate. The referenced letter provided an explanation of those cost changes. This letter provides more detail on the calculation of the waste disposal costs.

The cost of waste disposal for the Vallecitos Nuclear Center (VNC) decommissioning was recalculated in 1993 for all of the facilides at VNC. The total cost was reduced by $1.5 million as a result of considering various methods of volume reducdon and alternative waste disposal methods. These factors were discussed in the referenced letter. The details of the waste disposal costs calculations for the total site are shown in the attached document. This reduction of waste disposal cost resulted in a ten percent (10%) reduction M the total waste disposal cost. This factor was applied to the waste disposal cost for each license.

General Electric is continuing to evaluate other methods of waste value reduction such as incineration and alternative disposal methods. As new methods become available, they will be incorporated into our cost estimate as a means of reducing the rapidly escalating cost of waate disposal.

Please advise, if I may be of any further assistance.

Very truly yours, i

W.H. Schindler, Manager Government Finance Attachments l

)

DEC 17 '93 03:55Ai1 GE NUCLEAR 408 365 e564 F,.,

l GE - VALLECITOS NUCLEAR CENTER l

DECOMMISSIONING WASTE

SUMMARY

(1992 DOLLARS IN THOUSANDS)

(VOLUME IN FTa3) 1992 COST PER VNC TOTAL WASTE WASTE TYPE WASTE DESTINATION CU. FT.

VOLUME OOST 1

CONCRETE / SOIL BEATTY BURIAL

$88 117,760

$10,398 LSA WASTE BEATTY BURIAL

$56 53,021 4,539 HSA WASTE REATTY BURIAL

$334 623 208 i

TOTAL 171,404

$15,145 s...s..e GE - VALLECITOS NUCLEAR CENTER DECOMMISSIONING WASTE

SUMMARY

(1993 DOLLARS IN THOUSANDS)

(VOLUME IN FTa3) 1993 sassa COST PER VNC TOTAL WASTE WASTE TYPE WASTE DESTINATION CU. FT.

VOLUME COST CONCRETE / SOIL ENVIROCARE (90%)

$20 105,980

$2,120 BARNWELL B11 RIAL (10%)

$301 11,780 3,546 LSA WASTE SEQ METAL MELT (62%)

$50 32,871 1,627 BARNWELL BURIAL (384)

$293 20,150 5,900 i

HSA WASTE BARNWELL BURIAL

$622 623 388 TOTAL 171,404 513,580 sesasses OOsT REDUCTION FACTOR (1992 TO 1993 OOST) 15,145 - 13,580 X 100 = 10.3 %


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15,145

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