ML20078G308
| ML20078G308 | |
| Person / Time | |
|---|---|
| Site: | West Valley Demonstration Project |
| Issue date: | 02/12/1963 |
| From: | Runion T NUCLEAR FUEL SERVICES, INC. |
| To: | |
| Shared Package | |
| ML20078G199 | List: |
| References | |
| FOIA-83-354 NUDOCS 8310120049 | |
| Download: ML20078G308 (32) | |
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Before the UNITED STATES ATOMIC ENERGY COMMISSION Waahington, D. C.
In re Matter of the Application of (h+wr jj g ytle CoPI NUCLEAR FUEL SERVICES, INC. AEC Docket No. 50-201 For a Spent Fuel Processing Plant
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Application for License to Construct And Operate a Spent Fuel Processing Plant 1710 H Street BERNHARD G. BECHHOEFER, Washington, D. C. __ Scharfeld, Bechhoefer, Baron & Stambler February 12, 1963 ( I\19/[(,4N
'7a Attorneys for Nuclear Fuel Sarvices, Inc.
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(f Before the U. S. ATOMIC ENERGY COMMISSION Washington, D. C.
APPLICATION FOR LICENSE TO CONSTRUCT AND OPERATE A CHEMICAL PLANT Amendment #1 Part A The Applicant, in accordance with the Atomic Energy Act of 1954 as amended and the regulations pursuant thereto, herewith k amends its application filed July 25, 1962, as follows:
Paragraphs f4, 5, 7, the first subparagraph of para-graph 8, Paragraph 13, Annexes 3, 5, 6, and 7 of the application as originally filed are deleted, Annex 2 is amended, and the following are substituted therefor:
Amended Paragraph 4. Officers and Directors The names, addresses and positions of all present officers and directors of the Applicant are as set forth below: ,,
Directors W. E. McGuirk, Jr. J. W. Hardwicke R. D. Goodall T. C. Runion J. L. Dowell 1
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1 Officers Position Name Address Chairman of the Board W. E. McGuirk, Jr. 101 N. Charles Streat of Directors Baltimore 3, Maryland President T. C. Runion 212 Barr Building 910 17th Street, N. W.
Washington 6, D. C.
Vice President R. D. Goodall 101 N. Charles Street
, Baltimore 3, Maryland Secretary J. W. Hardwicke 101 N. Charles StYeet
, Baltimore 3, Maryland
( Treasurer J. L. Dowell e
101 N. Charles Street Baltimore 3, Maryland It is contemplated that Carter Burgess, Chairman of the Board of AMF, 261 Madison Avenue, New York 16, New York, will be elected Chairman of the Board of Directors and a Director of the Applicant and that W. E. McGuirk, Jr., presently acting as Chairman of the Board will continue as an Officer of the Applicant. It is further contemplated that Roy B. Snapp, a Divisional Vice President of AMF, 1701 K Street, N. W., Washington 6, D. C., will Ye elected as a Director of the Applicant. It is further contemplated that other changes and additions to the Directors and Officers will be made prior to Commission action granting a Class 10l+ license as requested in the application.
Amended Paragraph 5 Summary of the Project i
Applicant proposes to construct and operate a nuclear fuel processing facility to process spent fuels principally from reactors operated by licensees of the Commission and by the Commission.
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The plant will be capable of processing fuels from essentially all such facilities presently under construction or in operation althouga installation of certain facilities as explained in the Technical Statement on file herein will be deferred. Negotiations with five utility companies for providing this processing service have been substantially completed (See New Annex 11), negotiations with other utility companies have been initiated and additional negotiations will be initiated from time to time. Applicant is prepared to
( furnish services within the capacity and capability of the facility and upon mutually agreeable terms and conditions to any reactor licensee requesting its services.
Applicant has requested a contractual commitment from the Commission for a base load of Commission-controlled fuels in the amount of 125 days per year for the first five years of operation of the facility. Such service is being offered on substantially the same basis as that offered other reactor licensees. It is antici-pated that the contractual negotiations between Applicant and the l Commission, which are presently under way, will be completed by March 4, 1963 Applicant believes that the facility is a developmental facility within the meaning of the Atomic Energy Act of 1954, which l should lead to the demonstration of the practical value of this type I
l of chemical processing facility for industrial and commercial opera-tion.
The facility will be located at the Western New York Nuclear Service Center, Ashford, Cattaraugus County, New York,
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- 4-presently owned by ARDA. On June 29, 1962, ARDA and Applic' ant entered into an agreement under which Applicant secured an option to lease the: site (Annex 2). Undev the terms of the arrangement between NFS and ARDA provision will be made for ARDA in its capacity as prospective holder of the site in the name of the' State of New
- York, and in accordance with arrangements between NFS and A DA to assume certain responsibilities for the operation of the waste storage facilities at the site. Annex 2 will be supplemented 'with
( the additional agreements between NFS and ARDA.
Details of the plant 'and the sit are contained in Part f
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B of the application.
i The facility will be ccustructed,by Bechtel Corporation i
under a contract with the Applicant. -
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Amended Paragraph 7 Financial Qualifications. f The cost of the project as provided in the co ction 4,h and engineering contract with the Bechtel Cor on which is substantially complete, and as estima by Applicant for items not coming within the contract v Bechtel Corporation, is $27,800,000 (See Amended Annex This figuro is composed of the following items: Estima Cost of the Plant - $25,300,000; working capital -
$1,100 0; Reserve for Pre-Operational Expenses - $1,400,000; Tot'al - $27,800,000.
The cost of the project as set forth herein does not include the following expenditures already made in preparation for I
the project-by the stockholders of Nuclear Fuel Services, Inc., and by others and which will not be reimbursed:--
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e (1) Expenditures of the Davison Chemical Division of Grace and five major utility companies operating as ;
" Industrial Reprocessing Group", amounting to in excess of $600,000 for investi6ating the reprocessing plant project and demonstrating its technical and economic feasibility.
(2) Expenditures in excess of $300,000 made in 1962 by the Davison Chemical Division of Grace and expendi -
tures in excess of $125,000 made in 1962 by AMF for further preparatory work in connection with the project.
The financing for the project, including a reserve of
$4,000,000 over and above the estimated cost of the project for contingencies will be obtained as follows:
4 Cash to be paid by Grace for its equity $6,000,000 (Amended Annex 5 to be supplied)
Cash to be paid by AMF for its equity $2,000,000 (Amended Annex 5 to be supplied)
( $2,000,000 i Cashmentto Authority be paid by(Empire State described Hereinafter Atomic Develop- as i ESADA) to support the research and develop-l ment aspects of the Project (See original l Annex h) l l Bank loans (See Amended Annex 5 to be supplied) $13,300,000 L
l Land and Capital costs furnished by ARDA to $8,500,000 l be amortized (See Amended Annex 2 to be supplied) -
TOTAL $31.,800,000
$4,000,000 of the $13,300,000 available from bank loans.
will be held as a contingency on a standby basis until it is deter-mined that it will not be required. The standby charge is 1/2 of 1%.
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r In addition, Applicant will acquire from the Erwin, Tennessee facility of Grace:
Net Current Assets $1,001,000 Fixed and Other Assets (net) 1,504,000 TOTAL $3,505,000 Applicant will acquire from the transfer of the Port Hope, Ontario. facility of AMF:
Not Current Assets $ 300,000 Fixed Assetc (net) 462,758___
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$ 762,758 Both the Erwin facility and the Port Hope facility are operating businesses which have realized profits in all recent years and to the best of the knowledge of Applicant will continue to ouerate profi. ably. It is estimated that the annual combined net income after taxes of the Port Hope and Erwin f acilities will exceed $300,000.
Balance sheets and income data of the Erwin and Port Hope
- facilities are attached as Amended Annex 6. S'" g, As A pro-forma consolidated balance sheet af 4ppliusat as g /d, 3,// '
of commencement of construe of processin6 facilities -- assumed l
t to be May 1, 19 -- will be set forth in Amended Annex 7 to be provi .
While it is not possible at this time to anticipate I
accur'2tely the income which Applicant would derive from the pro-i cessing plant, nevertheless solely for the purpose of indicating l
l the financial qualifications of the Applicant, a highly tentative l
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c estimate has been made that on the basis of 300 days of plant operation, NFS will in an average year have available from its chemical processing facilities, to cover contingencies and (to the extent not required by contingencies) as pre-tax earnings, a sum in excess of $2,000,000. In addition, the Port Hope-and Erwin facilities should generate a pre-tax profit of $433,000. (For pro-forma profit statements and estimates of cash flow see Amended Annex 7 to be supplied.)
Applicant intends to obtain nuclear liability insurance andotherinsurancecoverageincluddngworkmen's compensation.
Further information concerning such coverage will be furnished by amendment.
Further information concerning the qualifications of Applicant wil'1 he furnished in the new and amended annexes referred to herein which have not yet been supplied.
The Applicant submits that it is financially qualified to engage in the construction and operation of the facility.
Amended First Subparagraph of Paragraph 8. Technical Q7alifications i - The Bechtel Corporation as principal contractor has over-all responsibility for the design and construction of the facility, has had extensive experience in the design and construction of nuclear facilities. New Annex 11 sets forth its experienes and qualifications.
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Amended Paragraph 13 Communications All communications from the Commission to the Applicant pertaining to this application should be sent to:
Bernhard G. Bechhoefer, Esquire, and Scharfeld, Bechhoefer, Baron & Stambler Attorneys for Applicant 1710 H Street, N. W., Fifth Floor Washington 6, D. C.
A copy of all' communications should be sent to:
Mr. T. C. Runion, President Nuclear Fuel Services, Inc.
212 Barr Building -
910 17th Street, N. W.
Washington 6, D. C.
Respec,tfully submitted, NUCLEAR FUEL SERVICES, INC.
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By f President w >rv Subscribed and sworn to before me this /d d day of 64uos V'
, 1963
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e INDEX OF ANNEXES Annex 1 -- Ownership of Grace and AMF -- See Original Application Annex .2 -- ARDA Agreement -- See Original Application, to be supplemented by additional material 4
Annex 3 -- Estimated Project Costs and Sources of Funds -- Revised Annex attached Annex 4 -- Agreement between ESADA and NFS -- See Original Appli-cation Annex 5 -- Arrangements for Bank Loans, and Board Resolutions of AMF and Grace authorizing equity investments -- To be supplied
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Annex 6 -- Balance Sheets and Income Dats of Erwin & Port Hope --
Revised Annex attached Annex 7 -- Pro-Forma Consolidated Balance Sheets, Profits State-ments and Cash Flow of NFS -- To be supplied Annex 8 -- Experience and Technical Competence of NFS Personnel --
See Original Application Annex 9 -- Personnel Training Program and Safety Program -- See Original Application New Annex 10 -- Processing Agreements with Utility Companies -- New Annex attached New Annex 11 -- Experience and Qualifications of Bechtel -- New Annex attached New Annex 12 -- Bechtel Contract -- To be supplied i
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Amended Annex 3
, Proposed Nuclear Fuel Reprocessing Plant Estimated Total Capital Required and Source of Funds
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Funds Required Fixed A sets (including ARDA facilities) $23,479,000 (A)
Plant Si 9 (ARDA) 500,000 NFS Estima e (field expense, interest, contingency) _1,321,000 Total Fixe Assets 25,300,000 1,100,000 Working Capita ((Start up ,Testing)
Preoperational 1,400,000-(B)
Total Funds Re uired 27,800,000 Additional Contin ency if Needed 4,000,000 Total Capital equired , $31,800,000 Source of Funds W. R. Grace & Co. $ 6,000,000 American Machine & Foundry Company 2,000,000 New York State - ARDA 8,500,000 Bank Loan (Available - 13 3 .illion) 13,300,000 Esada Research & Development Grant 2,000,000 Total Source of Funds $31,800,000 V[' L
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$20,000,000 but vill not at this stage of'phe engineering guarantee the balance. The area not guaranteed, princi-pally the head-end, contains allowances believed to be adequate.
l' (B) Stainless Steel-Cermets fuels and sodium bonded, fuels are Class B fuels and the facilities for processing'them will not be installed initially. However, the funds are to be l made available for startup expense.
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Amended Annex 6 I
AMF ATOMICS DIVISION Statement 1 l AMF CANADA LIMITED '
BALANCE SHEET As at July 1, 19 62 ASSETS CURRENT ASSETS Cash $ 26,983 "
Marketable Securities 225,000 Accounts Receivable 6,125 Due from affiliates 11, 59
( Inventories - supplies Inventories - work in process Deposits & prepaid expenses 15, p7 86, 42
_16,613 388,319 FIXED ASSETS Land- 31,006 Machinery and equipment 801,603 Furniture 36,794 869,403 Less: Accumulated depreciation 426,244 443,159 LEASEHOLD IMPROVEMENTS - at cost, ,,
less amounts written off 19,599
$851,077 LIABILITIES CURRENT LIABILITIES I
Accounts payable & accrued liabilities $ 58,251 Deposits on contracts 9,000 Due to parent company 7 918 Sundry taxes 4,,956 80,125 DIVISIONAL NET WORTH 770,952 i
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AMF Atomics Division AMF Canada Limited Statement of Earnings For the Year Ended December 31 1961 (in $000's)
Sales $1,270 Cost of Sales Raw Materials 106 Direct Expenses 182 k Direct Labor & Production Burden 783 Total Cost of Sales 1,071 Gross __ Profit 199 Administrative Expenses 131 Operating Frofit 68 Other (Income) Expense Hon-recurring (Income) Expenses (1)
Interest Income (5)
(Gain) Loss on Foreign Exchange 5 (1) l
([ Net Profit Before Taxes i 69 l
j Income Taxes 5 Net Profit for the Year $ 6(
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AMF Atomics Division AMF Canada Limited Analysis of Pre-Tax Profit (in $000's)
Fees and Profits El 1958 1959 1960 1961 Total
" Cost Type" Contracts AECL ,
Fee 3 37 45 45 130 Amortization Allowance 10 10 Eldorado Mining & Refining Rolling Supervision 2 7 3 3 15 NRU Type III Fuel Dev. 1 6 7 Sub-Total 5 45 54 58 162 Fixed Price Swiss Diorit Fuel 4 8 12 CIR Rods 7 1 8 16 JRR-3 Rods 62 '$ 65 Other 10 10 (w Sub-Total 4 15 63 21 103 j
Total Fees & Profits 9 60 117 79 265
- l. Non-Reimburseable Costs 32 45 4 8 10 99 Pre-Tax Profit $(32) $(36) $ 56 $109 $ 69 $ 166 Note: Profit of $77,000 on McMaster contract in 1959 has been excluded from this analysis.
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Nuclear Reactor Feed Materials Plant Erwin, Tennessee Comparative Balance Sheets (in $O00'sl at December 31st June 30 ASSETS 1957 1958 M1 1960 1961 1962 Current Assets -
Cash (8) 45 8 54 40 96 Accounts Receivable - Net 51 193 423 943 995 960 Inventories - Net 95 492 562 580 438 579 Total Current Assets 138 73d 993 1,577 1,529 1,579 Fixed Assets 966 1,190 1,408 1,667 789 1,985 Reserve for Depreciation (11) (84) (190) (307) 1,454)
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Net Fixed Assets 955 1,106 1,218 1,360 1,335 1,455 Other Assets 46 11 34 18 12 49 Total Assets $1;139 $1,847 $2,245 $2,955 $2,876 $3,083 LIABILITIES Current L$ abilities $ $ $ $ $ $
( . Accounts Payable 29 3 llo 149 101 175 l Accruals Payable 7 24 152 201 401 403 Total Current Liabilities 36 27 262 350 502 578 Net Worth 1,103 1,820 1,983 2,605 2,374 2,505 l
l Total Liabilities & Net
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! Worth $1,139 $1,847 $2,245 $2,955 $2,876 $3,083 i
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Nuclear Reactor Feed Materials Plant Erwin, Tennessee Profit / Loss Statements (in $000's) Actual 1957 1998 y1 1960 1961
$ $ 9 $ $
Net Sales 50 763 1,915 2,912 2,749 Cost of Sales ,109 690 1,317 2,230 1,950 Gross Profit (59) 73 598 682 799 other Income - 1 4 9 9 l Income (59) 74 602 691 808 i
Expenses General & Administrative 21 54 84 95 132 Marketing 6 50 73 84 62 Depreciation- 11 74 102 123 149 Research & Development -
33 25 37 14 Total Expenses 38 211 284 339 357 Net Income - Pre-Tax (97) (137) 318 352 451 l Income Tax - 54% (52) (74) 172 190 244 Net Income - After Tax $(45) $(63) $ 146 $ 162 $ 207 Note: The above earnings require adjustment if the Ervin Plant is to be considered a separate operation. The General and
' Administrative Expense contains allocated Baltimore charges which vary from year to year generally in accordance with the fluctuation in the cost of sales. This allocation has ranged in recent years from $50,000 to $75,000. For 1961, however, the figures show the effect of some provision over personnel l
for anticipated expansion. -Research & Development expenses would also be added back to profits.
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P New Annex 10 CONSOLIDATED EDISON COMPANY OF NEW YORK 4 Irving Place New York 3, N. Y.
J.F. Fairman Senior Vice President December 3-1962 -
Nuclear Fuel Services, Inc.
Barr Building, Room 212 910 Seventeenth Street, N.W.
Washington 6, D. C. -
Dear Sirs:
As a result of our conversabions and examination of data supplied to us with respect to your proposed chemical reprocessing l( , plant, we are satisfied that the following terms represent the best price that you can reasonably offer:-
Price per day of plant use for reprocessing of low enrichment oxide fuels as of July 1-1965 the expected date of commercial opera-tion (including anticipated costs of perpetual surveillance of wastes) - $ 23,500 Subject to a sliding scale adjustment in the event that full-revenue processing days in any year commencing with the first full fiscal year following commencement of commercial operations of the NFS plant As set forth exceed 300 days - La Schedule A Prices for other fuels to be related to C the base charge for low enrichment oxide fuels as set forth in your analysis dated September 21-1962.
t It is our desire, and we believe that it is the Atomic Energy Commission's desire, to see this project go forward on the time schedule now proposed. Accordingly, we agree to enter into a contract with you substantially in the form of the draft contract of November 19-1962 which you have delivered to us.
We are concerned, however, that the total post-irradiation costs entering into the fuel cycle will be increased over earlier estimates. We understand that you and we will discu'ss the following matters with the Atomic Energy Commission in an effort to reduce total post-irradiation fuel costs to a level representing a more reasonable percentage of total fuel costs:
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CONSOLIDATED EDISON COMPANY OF NEW YORK, Inc.
Nuclear Fuel Services, Inc. December 3-1962
- 2. Assumption by AEC of full responsibility for perpetual surveillance of waste materials.
3 Establishing nitrate as the standard form for return of source and special nuclear material to AEC after June 30-1963, without deduction for subsequent conversion to other chemical forms.
- 4. Terminating use charges at a specified time after delivery of a processing lot to NFS.
Yours very truly
/s/J.F. Fairman J.F.Fairman Senior Vice President Att JFF:em 4
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SCHEDULE A NFS EXTENDED RATE SCHEDULE REVENUS DAYS BASIC CHARGE 300 23,500 305 23,300 .
310 23,000
([, 315 22,800 320 22,600 325 22,400 330 22,200 335 22,000 340 21,800 345 21,600 350 21,400 ,-
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INTERMEDIATE DAYS TO BE OETAINED BY LINEAR EXTRAPOLATION.
December 3 1962
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POWER REACTOR DEVELOPMENT COMPANY a non-profit corporation 1911 First Street Detroit 26, Michigan Woodward 1-4838 ,e December 10, 1962 Nuclear Fuel Services, Inc.
Barr Building, Room 212 912 Seventeenth Street, N. W.
Wachington, D. C.
Gentlemen: ,
As a result of our conversations and examination of data supplied to us with respect to your proposed chemical reprocessing
(' plant and your proposal to reprocecs , nuclear fuel discharged from the Enrico Fermi Atomic Power Plant, we a're interested in negotiating a contract with you to cover such reprocessin6, and we are satisfied that the following terms represent the best price which you can reasonably offer:
Price per day of plant use for reprocessing of low enrichment oxide fuels as of July 1, 1965, the expected date of commercial operation (in-cluding anticipated costs of perpetual surveillance of wastes). - $23,500 Subject to a. sliding scale adjustment in the event that full-revenue processing days in any year commencing with the first full fiscal ,,
year following commencement of commercial
( operations of the NFS plant exceed 300 days.
Prices for other fuels to be related to the
- as set forth in Schedule A base charge for low enrichment oxide fuels as set forth in your analysis dated September 21, 1962, but not limited to the fuels listed therein.
We accept as a reasonable basis for negotiation the form of draft contract of November 19, 1962 which you have delivered to uc, provided that we shall not be legally bound except upon execu-tion of a formal written contract.
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We are concerned, however, that the total post-irradiation costs entering into the fuel cycle will be increased over earlier estimates. We understand that you and we will discuss the fellowing matters with the Atomic Ener6y Commission in an effort to reduce total post-irradiation fuel costs to a level representing a more reasonable percentage of total fuel costs:
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POWER REACTOR DEVELOPMENT COMPANY Nuclear Fuel Services, Inc. December 10, 1962
- 2. Assumption by AEC of full responsibility for perpetual surveillance of vaste materials.
3 Establishing nitrate as the standard form for return of source and special nuclear material to AEC after June 30, 1963, without deduction for subsequent conversion to other chemical forms. ,,
- 4. Terminating use charges at a specified time after delivery of a processing lot to NF3.
Our discussions have not tesulted in definitive agreement on all matters which must be covered by any reprocessing a6reement which we enter into, and we shall desire, among other areas, to discuss questions relating to the charges and throughputs indicated in your analysis dated September 21, 1962 with respect to depleted U-Mo alloys. In addition, as we have heretofore advised you, such contract as we may enter into may not bind the Commission or other governmental entity if it becomes a successor owner or operator of the Enrico Fermi facility. .
Yours very truly, POWER REACTOR DEVELOPMENT COMPANY
/s/ Walker L. Cisler By President Attachment I
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YANKEE ATOMIC ELECTRIC COMPANY 441 Stuart Street, Boston 16, Massachusetts November 30, 1962 Nuclear Fuel Services, Inc.
Barr Building, Room 212 910 - 17th Street, N. W.
Washington, D. C.
Dear Sirs:
As a result of our conversations and examination of data supplied to us with respect to your proposed chemical reprocessing
( plant, we are satisfied that the following terms represent the best price that you can reasonably offert Price per day of plant use for reprocessing of low enrichment oxide fuels as of July 1, 1965, the expected date of commercial operation (in-cluding anticipated costs of perpetual surveil-lance of wastes) - $23,500 Subject to a sliding scale adjustment in the event that full-revenue processing days in any year commencing with the first full fiscal year following commencement of commercial operations of the NFS plant exceed 300 days - as set forth l
,,in Schedulel Prices for other fuels to be related to the base charge for low enrichment oxide fuels as C'- set forth in your analysis dated September 21, 1962.
- It is our desire, and we believe that it is the Atomic Energy l Commission's desire, to see this project go forward on the time
! schedule now proposed. Accordingly, we agree to enter into a i
contract with you on the foregoing basie as to price, with other contract provisions substantially as we have discussed with you.
We are concerned, however, that the total post-irradiation costs entering into the fuel cycle will be increased over earlier estimates. We understand that you and we will discuss the follow-ing matters with the Atomic Energy Commission in an effort to reduce total post-irradiation fuel costs to a leve1' representing a more reasonable percentage of total fuel costs:
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Nuclear Fuel Services, Inc. November 30, 1962 e
- 2. Assumption by AEC of full responsibility for perpetual surveillance of vaste materials.
3 Establishing nitrate as the standard form for return of source and special nuclear material to AEC after June 30, 1963, without deduction for subsequent conversion to other chemical forms.
- 4. Terminating use charges upon delivery of materials to NFS.
Yours very truly,
(: - _/s/ William Webster William Webster, President SCHEDULE A REVENUE DAYS BASIC CHARGE 300 $23,500 305 23,300 310 23,000 315 22,800
(- 320 22,600 325 22,400 330 22,200 335 22,000 340 21,800 345 21,600 350 21,400 Intermediate days to be obtained by linear extrapolation.
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NSP NORTHERN STATES POWER COMPANY MINNEAPOLIS 2 MINNESOTA 1
December 3, 1962
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Mr. T. C. Runion Nuclear Fuel Services, Inc.
Barr Building, Room 212 -
910 - 17th Street, N.W.
Washington, D.C.
(y Gentlemen: ,
As a result of our conversations and examination of data supplied to us with respect to your proposed chemical reprocessing plant, we agree to enter into a contract with you substan-tially in the form of the contract draft of November 19, 1962, subject to our resolving the matters raised in our letter dated October 26, 1962, addressed to your Mr. Albert A Eustis.
This contract shall be based, among other thin 6s, upon the following terms:
Price per day of plant use for reprocessing of lov enrichment oxide fuels as of July 1, 19 65, the expected date of commercial operation (including anticipated' costs of perpetual surveillance.of vastes) shall be 4
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$23,500, subject to a sliding scale adjustment in the event that full-revenue processing days in any year commencing with the first full fiscal year following commencement of commercial operations of the NFS plant exceed 300 days as set forth in Schedule A attached.
Prices for other fuels to be related to the base charge for lov enrichment oxide fuels as set forth in your analysis dated September 21, 1962.
It is our desire, and we believe that it is the Atomic Energy Commission's desire, to see this project go forward on the time schedule now proposed. We are concerned, however, that the total post-irradiation costs entering into the fuel cycle vill be increased over earlier estimates. We understand that you and we vill discuss the following matters with the Atomic Energy Commission in an effort to reduce total post-irradiation fuel costs to a level representing a more reasonable percent-age of total fuel costs:
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- 2. Assumption by AEC of full responsibility for per-potual surveillance of vaste materials.
3 Establishing nitrate as the standard form for return of source and special nuclear material to AEC after June ~30, 1963, without deduction for subsequent conversion to other chemical forms.
- 4. Terminating use charges at a specified time after delivery of a processing lot to IRS.
Yours very truly,
/s/ E A Willson E A U111 son Vice President-Operation Attachment s
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Commonwealth Edison Company 72 West Adams Street . Chicago 90, Illinois November 30, 1962 l.
Nuclear Fuel Services, Inc. '
Room 212 Bar Building 910 - 17th street, N. W.
Washington, D. C.-
Gentlemen: "
This letter is written solely for the purpose of assuring you of our interest in your proposal to reprocess C nuclear fuel discharged from our Dresden Nuclear Power Station and to induce you to proceed with your plans for the con-struction of a reprocessing plant.
' As a result of our conversations with you and axamination of data supplied to us with respect to such matters,
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, we are interested in negotiating a contract with you to cover
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such reprocessing work.on the basis of a charge per revenue day for low enrichment uranium oxide fuels (assuming a daily reprocessing plant capacity of at least one metric ton of such material) of $23,500 as of July 1, 19 65, the expected date of commercial operation of-such reprocessing plant, such charge to include the costs of permanent storage and 4
' surveillance of wastes and to be subject to an appropriate downward adjustment in the event the plant's total revenue
' days on the above basis exceeds 300 per year, and to be
( subject to further adjustment based upon a so-called 50%
escalation (or reduction) in the general form we have discussed with you.
While our discussions have not resolved all of the i
matters which must be covered by a reprocessing agreement between us, this is to let you know that we are hopeful that such catters can be solved to our mutual satisfaction, and we will do everything reasonably possible to resolve such matters by Decemter 31, 1962.
While not limiting the matters to come under further i discussion, we consider it essent2.s1 that we not be required l to pay unit charges for equivalent reprocessing work which
, are higher than the charges that others, including the AEC, ,.
l are required to pay you or any other reTrocessor. '
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, l COMMONWEALTH EDISON COMPANY
- 2 Nuclear Fuel Services, Inc. November 30,1962 In giving you this letter we are relying upon the announced purpose of the Atomic Energy Commission to achieve overall nuclear power costs competitive with those from cen-ventionally-fueled plants. This objective vill be promoted by the AEC's acceptance of nuclear materials in nitrate forms after June 30, 1963 without charges for subsequent conversion '
or other penalties and by the reduction in reprocessing costs which can be achieved if it assists in loading the reprocess-ing plant to the maximum practical extent. Consequent 3y, our
(~ letter is conditional upon your agreement to cooperate with us in presenting these and similar urgent matters to the AEC. -
Very truly yours,
/s/ Gordon R. Corey Gordon R. Corey Executive Vice-President
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s Annex 11 l
QUALIFICATIONS OF BECHTEL CORPORATION The Bechtel organization, originated by W. A. Bechtel, has been continuously engaged in construction activities since 1898.
Bechtel has cerved industry and government as engineers and con-structors in railroad work; then in highways, tunnels, bridges, dams, and pipelines; and for the last twenty years in the fields of chemical and industrial processing, petroleum, power generation and distribution, harbor development, mining and metallurgy. The Bechtel organization has grown progressively to be one of the largest designers and constructors of industrial facilities and devel,o.pers of natural resources. The Company activities are world-wide, and principal offices are located in San Francisco, New York, Los Angeles; Toronto, and London.
A deep fund of experience has been accumulated in completing projects aggregating more than two and a half billion dollars of constructed value. Over the last five years the average amount of work completed per year by the Bechtel organization is in excress of
$250,000,000.
Bechtel Corporation has been concentrating on industrial plant chemical and hydrocarbon processing, pipeline, and power activities since the close of World War II and has built up a specialized engineering force of approximately 1900 engineers, draftsmen and ,
specialists, plus 400 key supervisory men specializing in this work.
The majority of the work includes complete responsibility for both engineering and construction, although a portion is strictly engineering design assignments. .
Bechtel's activities in the nuclear field date back to 1949, C when it constructed the first experimental breeder reactor at Arco, Idaho for the Atomic Energy Commission. In 1950, Bechtel was responsible for the cons',ruction of the Idaho Chemical Processing Plant for the Atomic Energy Commission at Arco, Idaho. Also in 195c, Bechtel perforced engineering for the Mark I and Mark II Materials Testing Accelerator project at Livermore, Califernia for
! -the Atomic Energy Commission.
Early in 1951, Bechtel Corporation entered a partnership with Pacific Gas and Electric Company in one of the first United States industrial study teams under contract with the Atomic Energy Commis-sion. The objective was to investigate the feasibility of applying-nuclear energy to the generation of electricity. A~ number of reactor types were considered and a recommendation was made that a particular type warranted a thorough investigation. These studies covered a two-year period and led to the formation of the expanded i study team known as Nuclear Power Group (NPG).
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l Annex 11 (Con't '
Resulting from the NPG studies was a proposal by Commoavealth
, Edison Company to the Atomic Energy Commission for private construc-tion and ownership of a 180 mv nuclear power plant. This plant, known as the Dresden Nuclear Power Station, was contracted to the General Electric Company, who in turn awarded a contract to Bechtel Corporation for the engineering of the more. conventional portions of the plant and the construction in its entirety. Construction of the Dresden Station was substantially completed in September, 1959, and criticality was first achieved October 15, 1959 Bechtel in 1956 was retained by the General Electric Company to supply engineering and construction services for their nuclear development center near Pleasanton, California. The Vallecitos laboratory consists of offices, hot and non-radioactive laboratories, and critical facilities. A 5,000 ekw prototype of the 180,000 ekw
.(- Boiling Water Reactor for the Commonwealth Edison Company of Chicago was constructed by Bachtel on the site. This prototype has'asso-ciated with it a steam power plant built by Bechtel and owned and operated by the Pacific Gas and Electric Company, which is generating commercial electric power for the Pacific Gas ana Electric Company system. Bechtel also performed preliminary design for the 30,000 tkw General Electric Test Reactor which has been built at the same site.
For the Army Package Power Reactor 1A (APPR-1A), built at Fort Greeley, Alaska, Alco Products, Inc. supplied the design of the nuclear system and specified thv containment requirements. Under contract with Alco, Bechtel provided the plant layout, designed the containment structure, the buildings, and all secondary and auxiliary systems. They also provided the drawings for the complete plant and l
prepared the specifications for all non-nuclear equipmenv.
Bechtel was architect-engineer for the U. S. Atomic Energy C Commission for the Hallam, Nebraska, 75,000 ekw Sheldon Plant for Consumers Public Power District.
In addition to the above-listed projects, Bechtel Cor is participating or has participated in the engineering and/poration or con-l struction of the following nuclear facilities:
Pacific Gas and Electric Company - Humboldt Bay Unit No. 3 Bechtel is engineer-constructor and prime contractor for the design and construction of a 50,000 ekw Boiling Water Reactor Power 4
Plant.
Consumers Power Company - Big Rock Point Nuclear Plant Bechtel is engineer-constructor and prime contractor for Ahe design and construction of the 50,000 ekw Boiling Water Reactor Power Plant for the consumers Power Company of Jackson, Michigan.
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Annex 11 (Con'd)
- Philadelphia Electric Company - Peach Bottom Atomic Power Station Bechtel is engineer-constructor and prime contractor for the design and construction of the 40,000 ekw High Temperature Gas Cooled Reactor Povar Plant for the Philadelphia Electric Company at Peach Bottom, Pennsylvania.
Hot Cell Facilities - Atomics International and General Atomic In addition to the Hot Cell Facilities at the aforementioned Vallecitos Laboratories, Bechtel has engineered and constructed Hot Cell Facilities for Atomics International and for the General Atomic Division of General Dynamics Corporation.
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In 1959, Bechtel carried out preliminary designs for two large
( water reactor system plants in conjun;ction with reputable reactor manufacturers and has offered such plants to industry as units which
, would probably exhibit costs competitive with higher fuel cost con-ventional units over their plant lifetimes. The Southern California Edison Company has announced that negotiations are underway with Westinghouse Electric Corporation and Bechtel to construct a 340 emw net pressurized water nuclear power plant.
The experience of Bechtel Corporation in the engineering con-struction field over the pasty sixty years, and particularly in the nuclear field over the past ten years, eninently qualifies it to i carry out its responsibilities in connection with.the design and
- ' construction of the Nuclear Fuel Services, Inc., Spent Fuel Processing Plant.
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- . e*i s, CERTIFICATE OF SERVICE I, Arthur Stambler, attorney for applicant Nuclear Fuel Services, Inc. and admitted to practice before the Courts of this jurisdiction, herewith certify that I have his 1)th pay ofg F bruary 1963, sent a copy of the foregoing c useauJ d'/,
/tti via regular United States mail, postage prepaid, to each of the following:
Troy B. Conner, Jr., Esq., and Charles M. Farbstein, Esq.
c/o Atomic Energy Commission ,
Germantown, Maryland
, Counsel for AEC Regulatory Staff
( Mr. Oliver Townbend 230 Park Avenue New York 17, New York New York State Atomic Research &
Development Authority Oscar M. Ruebhansen, Esq.
c/o Debevoise, Plimpton, Lyons & Gates 320 Park Avenue
, New York 22, New York Counsel for New York State Atomic Research & Development Authority Mr. Norman Fagnan Supervisor, Town of Ashford .
West Valley, New York
( Mr. E. Scott Smith County Clerk Cattaraugus County Little Valley, New York
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UNITED STATES OF AMERICA i ATOMIC ENERGY COMMISSION In the Matter of i )
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NUCLEAR PUEL SERVICES,INC.
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DOCKET NO. 50-201 THE NEW YORK STATE ATOMIC RESEARC.I AND DEVELOPMENT AUTHORITY -
_ CERTIFICATE OF SERVICE
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The undersigned, Oscar M. Ruebhausen, At-tolrney for New York State Atomic Research and Deve ment Authority, Hoes hereby certify that he caused said Authorityrs Application for Licenses, dated Jan-uary 29, 1963, together with his Notice of Appearance in the above captioned matter, dated February 8,- 1963, .
to be served on the following person by causing 1 con-formed copy of the same to be deposited today in tihe j
United States mail, properly stamped for first-class nia' il, and addressed as follows:
Mr. Norman Fagnan
' Supervisor Town of Ashford West Valley, New York By:/s/ e*a s h_ ebkgaa.sw f / */ Oscar M. Ruebhausen Dated: February 13, 1963
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, t@ HIT R. En-2ni ef New York State Atomic Research and Development Authority 230 Park Avenue New York 17,.New York January 30, 1963 United States Atomic Energy Commission Washington 25, D. C.
Dear Sir:
Submitted herewith are three fully signed originals of Application for Licenses, dated January 29, 1963, executed by the Chairman of the New York State Atomic Research and Development Authority, together with nineteen conformed copies thereof.
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( ,'~ 1 6 ; J.J j$f Attorney for the Authority
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Attention: Division of Licensing and Regulation 1
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BEFORE THE UNITED STATES ATOMIC ENERGY COMMISSION WASHINGTON, D. C.
t AEC Docket '3 O(
9%cm. j Q NEW YORK STATE
- ATOMIC RESEARCH AND DEVELOPMENT AUTHORITY Application for Licenses
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January 29, 1963
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l Before the U. S. Atomic Energy. commission i' Washington, D. C.
t Application for Licenses t
i In accordance with the Atomic Energy Act l of' 1954, as amended .(hereinafter referred to as the
" Act"), and the regu1ations issued pursuant thereto, the New York State Atomic Research and Development Authority (hereinafter referred to as the " Authority")
applies to the Atomic Energy Commission (hereinafter referred to as the " Commission") for the licenses identified in paragraph 5 below. In support of the application and pursuant to Section 50.33 of the Commission's regulations, the Authority states the l
- following
- l f 1. _Name and Address of the Applicant
! New York State Atomic Research and Development Authority 230 Park Avenue
- 2. Description of Applicant i
i The Authority is a body corporate and politic constituting a public benefit corporation, f created by the New York State Atomic Research and
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or persons (including itself) so to perform, pro-vided such other person or persons are licensed by the Commission so to perform.
The Authority further respectfully requests that all licenses pertaining to the project issued to either NFS or the Authority clearly reflect the
( basic responsibilities for satisfying Commission regulatory requirements to be imposed upon, and as-sumed by, NFS, as contemplated in the Outline of Terms.
- 6. Financial Qualifications Pursuant to Section 6 of Chapter 133 of the Laws of New York of 1962, the sum of $9,300,000 was appropriated to the Authority for use for its corporate purposes. The Authority will use $8 million l of the funds provided by that appropriation for its expenditures in connection with the project under the proposed contractual and lease arrangements between i
the Authority and NFS as contemplated in the Outline l
of Terms, under which the cost to the Authority of its participation in the project will be guaranteed by NFS not to exceed $8 million. The payments to be l
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made to the Authority by NFS for its lease of the Site and Storage Facilities and for the maintenance, surveillance, insurance and tank replacement costs related to the perpetual storage of radioactive wastes will be fully set forth in the contractual and ~1 ease arrangements between the Authority and .
NFS to be filed by amendment to this application.
7 Technical Qualifications Under the proposed contractual and lease arrangements between the Authority and NFS, as con-templated in the Outline of Terms, NFS will bear initial responsibility for the construction and operation of the Plant and the Storage Facilities at the Site. In view of this fact and in view of the ;
t, nature of the licenses sought by the Authority in
' this application, it is the belief of the Author-ity that, by virtue of such contractual and lease arrangements, the Authority will possess adequate technical qualifications.
- 8. Completion Date The earliest date for completion of con-struction of the Plant and Storage Facilities is January 1,1965 and the latest date for completion l I
is December 31, 1965 l
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c e s Wherefore, the Authority requests the Commission to issue to the Authority the licenses set forth in paragraph 5 above.
Respectfully submitted,
. NEW YORK STATE ATOMIC RESEARCH 1 AND DEVELOPMENT AUTHORITY
.e By V
JM ,((hhk Chai'rm'an '
STATE OF NEW YORK )
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COUNT'? 0F NEW YORK)
On thedi day of January, 1963, before me personally came OLIVER TOWNSEND, to me known, and known to me to be the individual described in and who executed the foregoing instrument and as-4
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knowledged to me that he executed the samee sa 1) ,
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Notitry Public e 9\ ', ' / ,-
- LOl'IS af. KURRELMEYER -
maary Pubsic, sente et New YerO No. 317387150
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, Qualified im New tora Counts / s' ,' ' , _y Comusinien Espires March 30, im' ~ ) 7, , g ,\
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