ML20078G214
| ML20078G214 | |
| Person / Time | |
|---|---|
| Site: | West Valley Demonstration Project |
| Issue date: | 02/24/1966 |
| From: | Runion T NUCLEAR FUEL SERVICES, INC. |
| To: | |
| Shared Package | |
| ML20078G199 | List: |
| References | |
| FOIA-83-354 NUDOCS 8310120012 | |
| Download: ML20078G214 (9) | |
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.' .- C C Before the UNITED STATES ATOMIC ENERGY COMMISSION Washington, D. C. -
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IN RE MATTER OF THE -
3 APPLICATION OF Nuclear Fuel Services, Inc.
(, For Construction Permit and Licenses AEC DOCKET NO. 50-201 For a Spent Fuel Processing Plant Under Sections 53, 63, 81, 10+(b)!
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Of the Atomic Energy Act
// 9e NUCLEAR FUEL SERVICES,.INC. S F #
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Application for -
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for a y e Spent Fuel Processing Plant Part A. General Corporate Financial and Technical Information INFORMATION SUBSEQUENT TO CONSTRUCTION PERMIT SUBMISSION NO. 5 Scharfeld, Bechhoefer & Baron NUCLEAR FUEL SERVICES, INC.
- 1710 "H" Street, N. W. T. C. Runion, President Washington, D. C. P. O. Box 1757 Baltimore, Maryland Attorneys for Applicant 54-14 L ..
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ARNOLD 83-354 PDR ,
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APPLICATION FOR LICENSE TO CONSTRUCT AND OPERATE A CHEMICAL PLANT PART A Information Subsequent to Construction Permit Submission No. 5 Applicant, Nuclear Fuel Services, Inc., a Maryland corpora-tion, submits the following amendment to its original application for a construction permit and license dated July 25, 19 62 as amended by Submission No. 4 of Information Subsequent to Con-struction Permit dated November 17, 19 65
- 1. Amend paragraph 9 to read: " Completion Date. The
! earliest date for completion of the construction of the facility is January 1, 1965, and the latest date for completion is June 30, 1966."
(; 2. Amend paragraph 2A of the construction permit issued by the AEC on April 30, 196 3 and as amenaed by order of the AEC dated December 10, 196 5 to read: "The earliest date for completion of construction of the facility is January 1, 1965, and the latest date for completion is June 30, 19 6 6."
3 Applicant requests the extension of the completion date I
because of developmental problems attributable to the experimental nature of the facility. The nature of l -
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these problems is set forth in detail in Submission No. 4 of Information Subsequent to Construction Permit dated November 17, 1965, reference being made thereto for greater particularity.
- 4. The remedial measures to deal with the heavy water run-off during installation of waste storage tanks referred to in paragraph 4 of said Submission No. 4 have been completed and tested. Likewise, the reseaYeh g and development program concerning the fuel segmentation process referred to in paragraph 3 ol' Submission No. 4 has been completed and the fuel segmentation process is being tested.
5 Applicant believes that construction of the facility will be complete and a provisional license will issue prior to March 31, 1966. However, unforeseen delays related to the developmental probleas attributable to the experimental nature of_the facility might delay com-pletion until after March 31, 1966.
- 6. Because of the possibility of delay in completion with resulting delays in obtaining income from the operation l
I of the facility, applicant has made the following supplementary financial arrangements to assure the availability of any funds required for the facility during the period from March 31, 1966 to June 30, 1966 even in the absence of revenue from the operations.
The stockholders, W. R. Grace & Co. (Grace), and American Machine and Foundry Company (AMF), have been
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-i\n,otifieC th'at additional funds cot exeeeding.$1,300,000
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- vill be required for the.We'st Valley plant,in the event
'st in startup until June 30, .!1966,'and have
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indicated that such funds /will be mide available if required, though no definite commitment will be'made by either AMF or Grace unkil after'the meeting of'the Board of Directors of Grace on March 3, 19 6 6'. Appli-cant will notify AEC of such additional commitments' prior to March 31, 1966. ,
Attached hereto as Annex A is a consolidated balance sheet as of January 31, 1966, and as projected for March 31, 1966. The Annex likewise contains a revised statement of sources and application of funds for the chemical processing plant. l As indicated in the attached Annex, net current assets of applicant as projected for March 31, 1966 vill be approximately $$.50,000. cash flow from the Erwin plant from April 1, 1966 to June 30, 1966 should i exceed $150,000. Funds required for the West Valley l plant in the absence of revenues from processing operations, during the period from April 1, 1966 to June 30, 1966, will be approximately $900,000.
Therefore, additional funds from the stockholders i of $1,300,000 vill be more than adequate to meet all
! expenses and to provide a contingency reserve exceeding
$400,000.
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- 7. The extension of the completion date as requested herein is unrelated to and will not affect other matters con-sidered or under consideration by the Commission in this proceeding.
- 8. Therefore, applicant requests the extension of the latest date for completion of the facility to June 30, 1966.
Respectfully submitted, NUCLEAR FUEL SERVICES, INC.
B swM Subscribed and sworn to before me this M day of
., February 1966.
Au LLA.
Notary Public
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ANNEX "A" NUCLEAR FUEL SERVICES, INC.
Consolidated Balance Sheet (in $000)
Actual Projected Assets Jan. 31, 1966 Mar. 31, 1966 Current Assets:
Cash $ 534 4 979 Receivables - Net 887 967 Inventories 601 1,207 '
Other Current Assets 918 562 r Total Current Assets 2,936, 3,715 Fixed Assets (Note 1) 22,226 22,638 Less: Reserve for Depreciation 1,194 1,243 Fixed Assets - Net 21,032 21,395 Other Assets:
Pre-Operational Costs -
Reprocessing Plant 2,701 3,401 Other 78 80 Total Other Assets 2,779 3,461
$26,747 $28,591 Liabilities & Stockholders 8 Equity m
Current Liabilities:
({ - Bank Loans Payable -
Current (Note 2) 1,195 1,358 Accounts Payable 1,052 1,200 i
Other Current Liabilities 365 290 Total Current Liabilities 2,612 ~ 27BEB Deferred Taxes on Income 368 381 Deferred Credit -
Research Grant (Note 3) 1,636 1,818 Long-Term Debt - Bank Loans (Note 2) 10,158 11,545 Total Liabilities 14,774 16,592 I Stockholders' Equity:
Capital Stock - Issued 11,105 11,105 l
t Paid-In Surplus Earned Surplus (Note 5)(Note 4) 500 500 368 394 Total Equity 11,973 11,999 l $26,747 $28,591 l
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ANNEX "A" Page -2 NUCLEAR FUEL SERVICES, INC.
Notes to the Balance Sheet Note 1 - Fixed assets do not include $8,500,,000 in land and facili-ties at West Valley, New York, leased to NFS by ASDA.
The detail of NFS-owned facilities by location is as follows:
Actual Projected
($000) Jan. 31, 1966 Mar. 31, 1966 West Valley, New York: .
Spent Fuel Processing Plant $18,829 $19,208 Other 180 180 j{ ' Total West Valley, N.Y.
Erwin, Tennessee:
19,009 3,217 19,366 3,250 Totsi $22,226 $22,636 Not9, 2 - The availability of funds under the bank loan agreement was extended to March 31, 1966, from December 31, 1965.
One-twentieth ($597,500) of the amount outstanding as of December 31, 1965, was repaid to the banks on January 1, 1966. The balance of the loan will be repaid in nineteen equal semi-annual installments beginning July 1, 1966.
Note 3 - ESADA is contributing $2,000,000 toward the research and development costs associated with the reprocessing plant.
Tuo of the eleven equal quarterly payments of $181,818.18 remain to be received in 1966, one on March 31 and the final one on June 30. The total contribution will be I amortized against the cost of the plant over its f
A depreciable life.
Note 4 - In accordance with the stockholders' agreement, W. R. Grace
& Co. and American Machine and Foundry Company have made the following contributions in return for eighty (80) and twenty (20) percent ownership respectively:
($000) Grace (80%)_ AMF (20%) Total Cash -
$6,000 $2,000 $ 8,000 Existing Facilities -
at book value 2,466 639 3,105
$8,466 _$2,639 $11,105 Note 5 - Funds have been contributed by the stockholders for use in expanding the facilities at the Erwin, Tennessee plant.
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ANNEX "A" Page -3 i
NUCLEAR FUEL SERVICES, INC.
, Sources and Application of Funds for the Chemical Processing Plant (in $000)
Received Balance to Thru 1/31/66 be Received Total SOURCES W. R. Grace & Co. $ 6,000 $ - $ 6,000 American Machine & Foundry Co. (AMF) 2,000 - 2,000 New York State Atomic & Space ,
Development Authority (ASDA) 7,704 796 8,500
(- Bank Loan - Manufacturers and Traders Trust Company and Morgan Guaranty Trust Company 11,950 1,550 13,500 Empire State Atomic Development Associates, Inc. (ESADA) 1,636 364 2,000 Funds Obtained From Liquidation of Wholly-Owned Subsidiary, AMF -
Atomics Canada Co., Ltd. 500 -
500 3
Total $29,790 $2,710 $32,500 APPLICATION Facility Costs: --
L Bechtel - Constructed Facilities $24,011 NFS - Provided Related Facilities 2,062 26,073 Plant Site (ASDA Provided) 500 Expenses Related to Construction 1,135 Working Capital 1,260 Preoperational Costs (estimated through 3/31/66) 3,401 Available for Contingencies 131
$32,500 l
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CERTIFICATE OF SERVICE I, Bernhard G. Bechhoefer, attorney for applicant Nuclear Fuel Services, Inc. and admitted to practice before the Courts of this jurisdiction, herewith certify that I have this 25th day of February , 1966, sent a copy of the fore-going Submission No. 5 of Information Subsequent to Construction Permit, via regular United States mail, postage prepaid, to each i
of the following:
Troy B. Conner, Jr., Esq.
c/o U. S. Atomic Energy Commission Bethesda, Maryland Counsel for AEC Regulatory Staff Mr. Oliver Townsend 230 Park Avenue New York 17, New York New York State Atomic and Space Development Authority Oscar M. Ruebhausen, Esq.
c/o Debevoise, Plimpton, Lyons & Gates 320 Park Avenue ,-
(- New York 22, New York Counsel for New York State Atomic and Space Development Authority l Mr. Norman Fagnan Supervisor, Town of Ashford l West Valley, New York l
l Mr. E. Scott Smith l County Clerk l Cattaraugus County l West Valley, New York l
Bernhard G. Bechhoefer p :.e i a . ,
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