ML20078G222
| ML20078G222 | |
| Person / Time | |
|---|---|
| Site: | West Valley Demonstration Project |
| Issue date: | 08/25/1965 |
| From: | Runion T NUCLEAR FUEL SERVICES, INC. |
| To: | |
| Shared Package | |
| ML20078G199 | List: |
| References | |
| FOIA-83-354 NUDOCS 8310120014 | |
| Download: ML20078G222 (4) | |
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Before the -
4 UNITED STATES ATOMIC ENERGY COMMISSION '
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IN RE MATTER OF THE APPLICATION OF %
q Nuclear Fuel Services, Inc. ,
For Construction Permit and Licenses AEC DOCKET No.: 50-201
( For a Spent Fuel Processing Plant Of eA i Energy ct [
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NUCLEAR FUEL SERVICES, INC.
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Application for O{ $3 O AUO C-Construction Permit and License -
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. Spent Fuel Processing Plant g N
Part A. General Corporate Financial and Technical Information ,
C INFORMATION SUBSEQUENT TO CONSTRUCTION PERMIT SUBMISSION NO. 3 FIRST PART NUCLEAR FUEL SERVICES, INC.
T. C. Runion, President P. O. Box 1757 Baltimore, Maryland
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$@- 8310120014 830714
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ARNOLD 83-354 PDR .
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Before the U. S. ATOMIC ENERGY COMMISSION Washington, D. C.
APPLICATION FOR LICENSE TO CONSTRUCT AND OPERATE A CHEMICAL PLANT PART A Information Subsequent to Construction Permit Submission No. 3 The Applicant herewith submits the following information supplementing
( or replacing and superseding Paragraph 7 of Applicant's original application, dated July 25, 1962:
Paragraph 7 - Financial Qualifications. Information, including that both previously supplied and furnished with this submission, has established that the Applicant has the financial strength necessary to carry the construction and start-up of its spent fuel processing plant through to the scheduled operational date of January 1, 1966. The construction of the plant is now approximately 98 percent completed, and Revised Annex 3 (July 15,1965) indicates that construction and preoperational funds are available te cover all known costs, with an additional $586,000 remaining available for any unforseen contingencies which might occur.
In connection with Revised Annex 3 and Annex 5 (Term Loan Agreement) it should be noted that the terms of Section 3.1 of the Term Loan Agree- ;
ment requiring NFS to avail itself of the sum of $10,000,000 on or before June 30, 1965 was waived by the banks at the request of NFS, and NFS was allowed to draw upon this sum until July 31, 1965. The sum of $10,000,000 available under this section was borrowed in its entirety within the extended period.
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x c In support of its contention that it is financially qualified to operate the plant for the period of the interim license, the Applicant submits the following sunmary cash flow statement for the period from July 1, 1965 to June 30, 1967:
(in $000) July 1, 1965 - Jan. 1, 1966 - Jan. 1, 1967 -
Dec. 31, 1965 Dec. 31, 1966 June 30, 1967 Cash Balance, Beginning of Period 1,083 (1) 1,095 '3,631
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Funds available from operations, bank loans, and contributions 5,387 3,886 1,849 Funds used for construction, working capital, and debt reduction _ 5,375 1,350 675 Excess of funds for the period 12 2.536 1,174 Cash Balance, End of Period 1,035 3,631 4,805 (1) - Includes $400,000 in bank certificates of deposit.
. As indicated, the net cash flow from all operations is expected to exceed $2,000,000 per year, after providing for debt reduction.
The Applicant carries property insurance on the facilities, property, and special nuclear material at the spent fuel processing plant site with i the Nuclear Energy Property Insurance Association. The policy coverage is
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on a reporting basis, with a ceiling of $35,000,000. The insurable value i
of_the completed facilities and property is estimated at $24,100,000, leaving
( $10,900,000 of coverage available for special nuclear materials. The executed contracts between NFS and its utility customers require NFS to insure the l
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" materials in process and recovered materials" at "an amount not less than 90% of the actual cash value thereof at any time." Based on the Applicant's presently known and projected fuel load, the amount of insurance so required is estimated to be not in excess of $7,700,000. Similarly, the contract with the AE0 for chemical processing services requires the Applicant to insure " uranium and plutonium delivered by any customer of the contractor (including the Commission) and located at the Plant" for "an amount not less than $7,700,000". The insurance presently in effect satisfies these require-ments.
(I It should also be noted with respect to material delivered to the Applicant under the utility contracts that the primary responsibility to the Commission for such material is retained by the utilities, and does not pass to NFS.
All shipments to customers under the Applicant's existing spent fuel processing contracts are to be made f.o.b. the Applicant's plant, thereby obviating the necessity of the Applicant insuring the shipments.
Should the necessity arise for such insurance, the Applicant has dethrmined
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from the Nuclear Energy Property Insurance Association that the coverage is available.
Therefore Applicant submits that it is financially qualified to bring the facility into operation and to operate the facility.
Respectfully submitted NUCLEAR FUEL SER CES, INC.
By [ O President Subscribed ud sworn to before me this A day of < W 44 [ 1965.
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