ML20126F444
| ML20126F444 | |
| Person / Time | |
|---|---|
| Site: | 07100397 |
| Issue date: | 08/24/1992 |
| From: | Dyson E, Otruba T BAKER & MCKENZIE |
| To: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| Shared Package | |
| ML20126F421 | List: |
| References | |
| NUDOCS 9212300311 | |
| Download: ML20126F444 (5) | |
Text
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C' IlY IIAND DillVERY Mr. James M. Taylor Executive Director for Operations U.S. Nuclear Regulatory Commission i
11555 Rockville Pike Rockville, Maryland 20852 Re:
Request for Exemption from Annual Fee,10 C.F.R. (171.11 (1992);
Filed on I}chalf of Teledyne En;rev Systems.
Dear Director Taylor:
On behalf of our client, Teledyne Energy Systems,110 West Timonium Road, Timonium, Maryland ("Teledyne Energy"), we are herewith submitting a request for an exemption from the Fiscal Year ("FY") 1992 annual fee pursuant to 10 C.F.R. 6171.11. As a Category 10.B l. Fabricators and Users Quality Assurance ("QA") Program Approval Holder, Teledyne Energy is subject to an annual fee of $62,800 for FY 1992. This fee represents an increase by more than 100 percent from the F1 1991 fee of $29,000. Teledyne Energy is unlike any other licensee in Category 10.11.1. and, therefore, is entitled to a specific exemption from the annual fee. Our reasons in support of this request are set forth below.
I. Backeround Teledyne Energy is an autonomous operating division of Teledyne Isotopes, Inc., a California corporation, which is in turn a wholly-owned subsidiary of Teledyne, Inc. of Los Angeles, California, a Delaware corporation. Teledyne Energy develops and manufactures radioisotope-fueled thermoelectric generators ("RTGs") for the U.S. Department of Energy, the Navy, the Air Force and other customers. The RTGs also serve as the isotopes' shipping container. This requires that Teledyne Energy have an approved Transportation QA Plan and that Certificates of Compliance be obtained and maintained during the operational lifetime of the generators. In addition to its currently approved QA Plan #0397, Teledyne Energy is supporting five (5) Certificates of Compliance (#5862, #9030, #9205, #9153 and #4888). The generators supported by these Certificates of Compliance were designed and manufactured during the period 9212300311 921204 00 @
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O BAKUll & MGENZIE Mr. James M. Taylor August 24,1992 Page 2 1966-1986 and the most recent shipments from Teledyne Energy's facility to customers were in 1985.
The standard pattern of usage of these RTGs is that they are shipped to the user and then emplaced at the user's site requiring long-life, remote, unattended power. The RTGs remain in that same location for many years which in most cases is 1015 years. Reshipment of these units is extremely infrequent. These factors differentiate Teledyne Energy from other Category 10,lt 1. licensees which regularly reship and reuse their transportation casks which are used for nuclear fuel, waste and irradiation sources. The resulting level of services and attention required -
to be provided to Teledyne Energy by the NRC is practically none but for the initial liccasing activity and 5-year renewal activity for its QA Plan and Certificates of Compliance, all of which is of course paid for separately on an hourly rate basis.
Teledyne Energy does not maintain an ongoing active business in RTG production.
RTGr are specialized and customized devices which are only manufactured to fill a particular contract. Teledyne Energy has not manufactured a new strontium-90 fueled RTG since 1986 and presently only provides spare parts and support services for existing generators. Teledyne Energy's average annual receipts in this portion of its business are between approximately
$250,000 and $300,000, well below the $3.5 million threshold for small entities which would otherwise qualify it for the lower annual fee of $1,800 if only the RTG portion of Teledyne Energy's business were considered. In addition, but for the NRC's position that a Fabricators and Users QA Plan must support the Certificates of Compliance covering these RTGs, Teledyne Energy would not need to maintain an approved QA Plan and pay the exorbitant annual fees because it no longer manufactures new strontium-90 fueled RTGs. Teledyne Energy has discussed with NRC officials the matter of transferring their Certificates of Compliance to their customers / users and terminating their approved QA Plan, but the NRC claims that the Users QA Plans are not of sufficient scope to support the Certificates of Compliance.
Thus, Teledyne Energy is left with no options. It is forced to maintain an approved QA Plan and pay an excessive annual fee to cover products originally manufactured between 1966-1986, rarely reshipped and no longer manufactured by Teledyne _ Energy.
Under these circumstances, the assessment of the proposed FY 1992 annual fee against Teledyne Energy is unfair and inequitable.
- 11. lxcal Analysis As part of the Omnibus Budget Reconciliation Act of 1990, Pub. L.101-508, Title VI, Subtitle B, Section 6101, the NRC was required to recover approximately 100 percent of its budget nuthority less the amount appropriated from the Department of Energy administered
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UAl{El{ & MVKENZIE Mr. James M. Taylor August 24,1992 Page 3 Nuclear Waste Fund for FYs 1991 through 1995 by assessing license, inspection and annual fees. On July 10, 1991, the NRC published a final rule which established the part 170 professional hourly rate and the materials licensing and inspection fees as well as the part 171 annual fees to be assessed to recover approximately 100 percent of the FY 1991 budget. - Under this rule, Teledyne Energy, as a Category 10.B.I. QA Program Approval Holder, was required to pay an annual fee of $29,000. On July 23,1992, the NRC issued a notice of a final rule which increases the annual required to be paid by Teledyne Energy for FY 1992 by more than 100 percent, to $62,800. We respectfully submit that subjecting Teledyne Energy to the increased fee is inconsistent with congressional intent.
A.
Tcledyne Energy Should Ile Exempt From the Subject Annual Fee Because ILIs An Unfnir and ineottilnble Allocation of NRC Costs.
Teledyne Energy should be exempt from the assessment of the 1992 annual fee and the 100 percent increase because the proposed annual fee does not fairly and equitably reflect the cost of providing regulatory services to Teledyne Energy. The legislative history to the Omnibus Budget Reconciliation Act of 1990 is clear and provides, in relevant part, as follows:
The conference agreement preserves the NRC's discretion to impose annual charges on one or more classes of non-power-reactor licensees if the Commission believes it can fairly, equitably, and practicably do so.
[T]he conferees intend that the NRC assess the annual charge under the principle that licensees who require the greatest expenditures of the agency's resources should pay the greatest annual charge. Thus, the conference agreement provides that the NRC shall establish, by rule, a schedule of charges " fairly and equitably" allocating the total amount of charges to be recovered among its licensees, and that [t]o the maximum extent practicable, the charges shall have a reasonable relationship to the cost of providing regulatory services" to the licensees.
H. Conf. Rep. 101-964,101st Cong.,2d Sess. at 961-962, reprinted in,1990 U.S. Code Cong.
& Admin. News at 2666-2667.
'The assessment of an annual fee against Teledyne Energy, particularly one in excess of 100 percent of the 1991 fee, has no reasonable relationship to the cost of providing regulatory services to Tcledyne Energy. The services provided by the NRC are limited to an occasional brief discussion of generic issues. In 1991, Teledyne Energy received a total of approximately
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HAl(Ell N 31VK13ZIE Mr, James M. Taylor August 24,1992 Page 4 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br /> of service from the NRC, Of the 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br />, approximately 2.5 - 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br /> was devoted to -
a meeting held with NRC officials to discuss the Certificates of Compliance transferral proposal.
Prior to this, the last meetini; Teledyne Energy held with NRC officials was in approximately 1984 to discuss the$ sign of a new RTG. Other than these two meetings, the services provided by the NRC to Teledyne Energy have been limited to an infrequent phone call to discuss interpretation of regulations and related issues. Teledyne Energy pays separately on an hourly rate basis for all other services received from the NRC including new Certificates of Compliance and renewals of the QA Plan and existing certificates. As noted above, Teledyne Energy is unlike other licensees in Category 10.B.I. whose containers are regularly reshipped and reused, thus requiring greater attention by the NRC and, in turn, receiving greater benefit from NRC services. The assessment of the proposed 1992 annual fee against Teledyne Energy is unfair and inequitable and contrary to congressional intent. In view of this, we request that the NRC exempt Teledyne Energy from the FY 1992 annual fee.
B.
In the Alternative, Teledyne Energy Should Be Entitled to a Partial Faemption at the Level Applicable for Small Entitles.
In the alternative to a complete exemps.sn from the 1992 annual fee, Teledyne Energy should be entitled to a partial exemption. Under principles of equity and fairness, a. partial exemption should be granted at the level applicable for small entities under scetion 171.16(c).
Tcledyne Energy's average annual receipts in the RTG portion of its business (spare parts and support services for existing generators) are approximately $250,000 - $300,000 which would otherwise qualify it for the lower annual fee applicable to small entities of $1,800 if only the RTG portion of Tcledyne Energy's business were considered. Thus, in view of the unique circumstances presented in Teledyne Energy's case, it would not be inappropriate to grant Teledyne Energy a partial exemption from the annual fee to the amount of $1,800.
C.
Teledyne Energy IIas Fully Cooperated With the NRC in Attempting to Construct a Workable Plan Which Will Protect Public Health and Safety.
As we have discussed above, Teledyne Energy has been placed in the position of maintaining an approved Fabricators and Users QA Plan covering fabrication and paying an excessive annual fee to cover products originally manufactured between 1966-1986, rarely reshipped and no longer manufactured by Teledyne Energy. While we agree that the NRC has the responsibility to ensure that public health and safety is not endangered by the transportation of nuclear material, these policy considerations are simply not apparent in the case of Teledyne Energy.
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HAlWil N MVlOWZil0 Mr. James M. Taylor August 24,1992 Page 5 Teledyne Energy has proposed cancellation of its QA Plan and requested approval for the transfer of its Certificates of Compliance to holders of Users QA Plans. The NRC, however, has claimed that the Users QA Plans are not of sufficient scope to support the Certificates of Compliance. Hence, termination of Teledyne Energy's QA Plan would have the net result of terminating the underlying Certificates of Compliance.
Tcledyne Energy's customers, specifically the Navy and the Air Force, rely on these Certificates of Compliance and cancellation of such is simply not a valid option for Teledyne Energy. Teledyne Energy has been extremely diligent and reasonable in attempting to canstruct a workable plan which will protect the public safety. We respectfully request that av exemption from the annual fee is warranted in this case.
III. Conclusion For all of the foregoing reasons, we respectfully request that Tcledyne Energy be granted a specific exemption from the FY 1992 annual fee.
Teledyne Energy is unique among the licensees in Category 10.B. l. and does not receive the same level of services or benefits as other licensees. Under these circumstances, it is inappropriate to assess the exorbitant annual fee of
$62,800 against Teledyne Energy and require it to bear costs for services which it does not receive.
We would appreciate the opportunity to meet with you and further discuss this matter.
After you have had the opportunity to review this submission, please contact the undersigned at (202) 452-7004 (Mr. Dyson) or (202) 452-7030 (Ms, Otruba) to schedu mutually convenient time for such a meeting.
/
jRespe f IIy sub itted, Am v
Edwar E. Dyson [
feresa A. Otruba Attorneys for Teledyne Energy Systems cc:
Mr. Peter J. Vogelberger, Jr.
David R. Francis, Esquire
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s flRC F/C PDR DEC 19 -1989 RGN I SHO-LGordon GBennington MMessier HMSS/SGTB.
AGre11a JCook ERichardson CMacDonald SGTB:LLG 71-0397 Teledyne Energy Systems ATTN: Mr. W. A. Mcdonald 110 West Timonium Road Timoniun, MD 21093 Gentlemen:
Enclosed is Quality Assurance Program Approval for Radioactive Material Packages No. 0397, Revision 3.
Please note the conditions of the approval.
Sincerely, Original Signed by CHARLES E. F.ACDONALD Charles E. MacDonald, Chief Transportation Branch Division of Safeguards and Transportation, NMSS g;c;,5;; w- ;;;; x; -- ;.;.;.;. 4
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i SGTB:MGB 71-4888 DEC 2 41991 Teledyne Energy Systems ATTH:- Mr. John F. Vogt 110 W. Timonium Road Timonium, MD 21093-3163 O,7 g@
Dear Mr. Vogt:
17,1991,,es, suppleniented, As requested by your application dated September
~ for the enclosed is Certificate of Compliance No. 4888, Revision No.<9, T/ entirety, This certificate supersEd'es, in it Sentinel-25 series packages.
Certificate of Compliance No. 4888, Revision No. 8, da'thd November'2d,1986.
Changes made to the enclosed certificate are indicated by vertical lines in the margin.
Those on the attached list have been registered as users of these packages under the general license provisions of 10 CFR 671.12 or 49 CFR 9173.471.
This approval constitutes authority to use these packages for shipm provisions of 49 CFR 9173.471.
Sincerely, Originat T-ned by Charles E. MacDonald, Chief Transportation Branch Division of Safeguards and Transportation, NMSS
Enclosures:
1.
Certificate of Compliance No. 4888, Rev. 9 2.
Approval Record cc w/ encl:
Mr. James K. O'Steen Department of Transportation Registered Users Distributinn:
NRC FC HMSS r/f CEMacDonald ERZiegler NRC PDR SGTB r/f CRChappell MGBailey MEMessier SGDB Regions (5)
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71-5862 hRC File Center DKasun NRC PDR GGardes CEMacDonald CRChappell Teledyne Energy Systems ERichardson ATTN: Mr. John F. Vogt MMessier 110 W. Timonium Road Regions (5)
Timonium, MD 21093-3163 State Health Official HMSS r/f
Dear Mr. Vogt:
SGTB r/f As requested by your application dated July 26, 1990, enclosed is Certificate-of Compliance No. 5862, Revision No. 5, for the Model No. Sentinel-100F package.
This certificate supersedes, in its entirety, Certificate of Compliance No. 5862, Revision No. 4, dated September 30, 1985.
Changes made to the enclosed certificate are indicated by vertical lines in the margin.
Those on the attached list have been registered as users of this package under the general license provisions of 10 CFR 671.12 or 49 CFR $173.471.
This approval constitutes authority to use this
>ackage for shipment of radioactive material and for the package to be slipped in accordance with the provisions of 49 CFR 5173.471.
Sincerely, Original Sigtied by-v3 Charles E. MacD6n.ald, Ehief Transportation Gench g g4 DivisionofSafqtfardso
- ,i and Transportation, gSS ;i m.
Enclosures:
m 1.
Certificate of Compliance i:
M No. 5862, Rev. 5 9
2.
Anproval Record cc w/ encl:
Mr. hichael E. Wangler Department of Trensportation Registered Users UFC :5GTB p-
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.Oi 0 . -57%- u ,, j# ,,. x. 7 y FEB:13 1991 1 ~ SGTB:DHW Distribution:- 71-9030 NRC-File Center -DKasun- 'l HRC pDR-BHWhite CEMacDonald-- GGardes ~ Teledyne Energy Systems CRChappell ATTN: Mr. Fred Schumann ERZiegler 110 West Timonium Road MMessier H Timonium, MD 21093 3163 McBedRCA. (5) O!VIHLH IState" Health Offical NMSS.r/f
Dear Mr.- Schumann:
'91 19 As requested by your application da.ted' November-12 1990, as supplemented-February 1,1991, enclosed is Certificate of Compliance No. 9030, Revision No._ 5, for the Model Hos MW.3000 and Sentinel.8 packages. This certificate-supersedes, in its entirety, Certificate.of Compliance No. 9030, Revision No. 4, dated October 22, 1985. Changes made to the enclosed certificate are indicated by vertical lines in the a margin. Those on the attached list have been registered as users of this package 'under the general license provisions of 10 CFR $71.12 or 49 CFR $173.471.. This-approval constitutes authority to use this ?ackage for shipment of radioactive material and for the package to be slipped-in accordance with.the provisions of 49 CFR 5173.471. Sincerely,. pdpant !W' Y Transportation Branch: Chief Charles-E. MacDonald, Division.of= Safeguards- -l and Transpartation,.NMSS ) 2 4-
Enclosures:
1. Certificate of Compliance No. 9030. Rev. 5: 2. Approval: Record-cc w/ encl: _. Ms.- Kris: Smith-1, _Departnent of. Transportation-(RegisteredUsers 4 Ats#MG1GVlf TjFC t 5GTB g......:5GTB
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