ML20141G122
| ML20141G122 | |
| Person / Time | |
|---|---|
| Site: | 07001201 |
| Issue date: | 06/17/1997 |
| From: | Elliott G FRAMATOME COGEMA FUELS (FORMERLY B&W FUEL CO.) |
| To: | Weber M NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| TAC-L30828, TAC-L30836, NUDOCS 9707030306 | |
| Download: ML20141G122 (17) | |
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June 17,1997 l
Mr. Michael F. Weber, Branch Chief l
Licensing Branch (T8D14)
Division of Fuel Cycle Safety & Safeguards Office of Nuclear Materials Safety & Safeguards United States Nuclear Regulatory Commission I
l Washington, D.C. 20555
Dear Mr. Weber:
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Reference:
Docket No. 70-1201, SNM-1168 l
Name Change and New Letter of Credit (TAC Nos. L30828 and L30836)
As requested in your March 26,1997 correspondence, Framatome Cogema Fuels l-(FCF) is submitting additional information required to support our request to a name change from B&W Fuel Company to Framatome Cogema Fuels.
In accordance with your correspondence, Attachment I identifies the additional information requested and FCF's response. Attachment il is the new Standby Trust Agreement which references FCF as the grantor throughout the Agreement. Schedule A of the Agreement has been revised to denote the current decommissioning cost estimata for the license covered by the Agreement.
This is also included in Attachment II.
This matter was discussed with Mr. Michael X. Lamastra of your staff. Should you have any questions regarding this request, please feel free to contact me at (804) 832-5202.
Sincerely, FRAMATOME COGEMA FUELS Lynchburg Manufacturing Facility
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9707030306 970617,
PDR ADOCK 07001201 C
[
e Gayle F. Elliott Manager, Safety & Licensing Frematome Cogema Fuels F R AM ATO M E P.O. Box 11646, Lynchburg. VA 24506 1646 YtcHHoLoo: Es Telephone: 804 832 5000 Fax: 804 832 5167
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Attachment l Page 1 of 3 l
l FCF to provide the following information:
1.
(1) The revised decommissioning cost estimate appears to account for the cost of compacting the waste generated in decontaminating facility components.
The cost estimate, however, does not include adequate documentation of these costs. Specifically, the estimate does not indicate how the 0.01 factor is incorporated in the calculation of labor costs for decommissioning the facility. (2) In addition, the estimate does not define a
" unit" of waste for the compaction factor, nor does it indicate whether compaction will take place on-site or off-site.
(3)
Accordingly, submit i
additional detail on the cost of compacting waste generated from decontamination of facility components. (Regulatory Guide 3.66 pages 1-9 and 1-10).
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Response
Item number (1) deals explicitty with issues regarding the compaction of waste. FCF has established an experience base l
in this regard derived from the decommissioning activities at Parks l
Township - ApoHo, and of the former FCF (CNFP) PeHetizing j
Room, where we ultimately prepared large volumes of waste material for various methods of disposal. These methods included direct burial, decontamination and burial, metalmelting processes, incineration and decontamination for unrestricted handling. In addressing the multifaceted approach to disposal of equipment l
and facilities, FCF's use of the term " compaction"is twofold.
l First, the conventional use of compaction, implying mechanicaHy induced compression, is performed off site by vendor companies such as U.S. Ecology or Alaron.
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The second use of the term is relativo to utilizing voids in containers for fiHer materials such as contaminated soil, asphalt, smears, and rags. AdditionaHy, volume reduction will be attained through the disassembly and dismantling oflarge equipment. An example for utilizing voids wouM be as foHows; given the weight of PVC piping relevant to its volume and the aHowable shipping weight, it becomes evident that a sea van of piping would be weH under the shipping weight limits, and largely comprised of voids.
The voM areas couM be fiHed with soil, paper, and small articles.
Compaction through disassembly wouW be accomplished on such an item as the SERF 1 overhead crane. Disassembled, many of the crane components wiH fit in the voids of other crane components.
Thus, we would employ compaction of such a shipment by dismantling and filling the volds.
i Attachment I Page 2 of 3 1
The.01 factor (1 Man-hour per 100 units generated waste)
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specl6cally questioned is incorporated in the calculation oflabor costs. This factor is usedin the derivation of the $0.4 and $1.1 i
factors found under the headings ~1ST YEAR", "1. SERF-1 (OLD PELLET PLANT".
The incorporation of this factor is as follows:
(1308 cuft) x ($31/cuft) x (1 Man-hour /100 units (cu/ti) x ($k/$1000) = $0.4 i
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(3456 sqft) x ($31/sqft) x (1 Man-hour /100 units (soft)) x ($k/$1000) = $1.1 Item number (2)is for an explanation of the 'km/t"of waste.
As can be seen in the explanation above, we have delineated l
between square feet and cubic feet as required dimensionally.
i But, based on previous experience, FCF estimates the Man-l hout inuirement to be the essentially the same, regardless of j
the materialgeometry.
I Item number (3) is the request for additional detail on the cost of compacting waste generated from decontamination of facility components. FCF has addressed this issue in the i
i aforementioned items. The spreadsheet for the FCF l
Decommissioning plan presently incorporates three modes for l
disposal (ship directly for burial, decontaminate for release, and off-site vendorprocessing). The cost for each is included in j
the spreadsheet. Again, the past experience of FCF has proven l
the materials generated from decontamination can be 4-Incorporatedinto packages of equipment with voids.
i II.
The current Standby Trust Agreement references B&W Fuels Company as i
the grantor throughout the Agreement (i.e., in paragraph 1, the signature page, the letter of acknowledgment, Schedule A, the specimen certificate of events, and the specimen certificate of resolution.) Accordingly, revise the l
Standby Trust Agreement (including the attachments listed above) to reference Framatome Cogema Fuels instead of B&W Fuel Company.
Response: Attachment ll contains a copy of the new Standby Trust Agreement. This Agreement references Framatome Cogema Fuels as the grantor throughout the Agreement.
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Attachment I Page 3 of 3 1
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Section 2 of the Standby Trust Agreement states that "This Agreement pertains to the costs of decommissioning the materials and activities....shown in Schedule A." Schedule A to the Standby Trust Agreement lists the licensee's address as "P.O. Box 10935, Lynchburg, i
Virginia 24506" and lists the address of the licensed activity as "Mt. Athos Rt. 726, Lynchburg, Virginia 24504." Materials included with the current submission, however, state the licensee's address as "P.O. Box 11646, j
Lynchburg Virginia 24506-1646" and state the licensee's " place of business I
and business address" as "3315 Old Forest Road, Lynchburg, Virginia."
Unless Schedule A is accurate, the trustee may not be able to expend decommissioning funds on the appropriate facility.
In addition, the current. submission did not update Schedule A to reflect the' i
new cost estimate for license SNM-1168. ' As a result, the Standby Trust 4'
would allow the trustee to make payments of only $2,800,000, rather than l
$ 5,116,800, toward decommissioning under this license. Accordingly, 3
revise Schedule A to reference (1) the current addresses of the licensee and L
the licensed activity and (2) the current decommissioning cost estimate for the license covered by the agreement.
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Response
Schedule A of the Standby Trust Agreement'(shown in Attachment II) has been revised to reference the current l
addresses of the licensee and the licensed activity and denotes the current decommissioning cost estimate for the license covered by the agreement.
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STANDBY TRUST AGREEMENT TRUST AGREEMENT, the Agreement entered into as of October 15, 1993 and revised as of May 9,
1997 by and between Framatome Cogema 4
Fuels, a Delaware Partnership, herein referred to as the " Grantor,"
and Wachovia Bank Of North Carolina, NA 301 North Main St. Winston-Salem, NC 27150, the " Trustee."
WHEREAS, the U.S. Nuclear Regulatory Commission (NRC), an agency of the U.
S. Government, nursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 70. These regulations, applicable to the Grantor, require that a holder of, or an applicant for, a Part 70 license provide assurance that funds will be available when needed for required decommissioning activities.
Whereas, the Grantor has elected to use a letter of credit to provide all of such financial assurance for the facilities identified herein; and j
WHEREAS, when payment is made under a letter of credit, this standby trust shall be used for the receipt of such payment; and WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee, NOW, THEREFORE, the Grantor and the Trustee agree as follows:
section 1.
Definitions. As used in this Agreement:
(a)
The term " Grantor" means the NRC licensee who enters into this Agreement and any successors or assigns of the Grantor.
(b)
The term ' Trustee" means the trustee who enters into this Agreement and any successor Trustee.
Section 2.
costs of Decommissionina.
This Agreement pertains to the costs of decommissioning the materials and activities identified in License Number SNM - 1168 issued pursuant to 10 CFR Part 70 as shown in Schedule A.
Section 3.
Establishment of Fund.
The Grantor and the Trustee hereby establish a standby trust fund (the Fund) for the benefit of j
the NRC. The Grantor and the Trustee intend that no third party i
have access to the Fund except as provided herein.
I Section 4.
Payments Constituting the Fund.
Payments made to the c
Trustee for the Fund shall consist of cash, securities, or other liquid assets acceptable to the Trustee. The Fund is established i
initially as consisting of the property, which is acceptable to the
Trustee, described in Schedule B attached hereto. Such property and any other property subsequently transferred to the Trustee are referred to as the " Fund," together with all earnings and profits 1
thereon, less any payment or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided.
The Trustee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of the Fund, nor any duty to collect from q
the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the NRC.
Section 5.
Pavnent for Required Activities Specified in the Plan.
The Trustee shall make payments from the Fund to the Grantor upon presentation to the Trustee of the.following:
a.
A certificate duly executed by the Secretary of the i
Depositor attesting to the occurrence of the events, j
and in the form set forth in the attached Specimen i
Certificate, and b.
A certificate attesting to the following conditions; (1) that decommissioning is proceeding pursuant to l
an NRC-approved plan.
(2) that the funds withdrawn will be expended for activities undertaken pursuant to that Plan, and (3) that the NRC has been given 30 days' prior notice of Framatome Cogema Fuels' intent to withdraw funds from the escrow fund.
No withdrawal from the fund can exceed 10 percent of the outstanding balance of the Fund or 100,000.00 dollars, whichever is greater, unless NRC approval is attached.
In the event of the Grantor's default or inability to direct decommissioning activities, the Trustee shall make payments from the Fund as the NRC shall direct, in writing, to provide for the payment of the costs of required activities covered by this Agreement. The Trustee shall reimburse the Grantor or other persons as specified by the NRC, or State agency, from the Fund for expenditures for required activities in such amounts as the NRC, or State agency, shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the NRC specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.
Section 6. Trust Management. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to
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time, subject, however, to the provisions of this section. In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; except that:
(a)
Securities or other obligations of the Grantor, or any other owner or operator of the facilities, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15 U.S.C.
80a-2(a)), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State government; (b)
The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to the extent insured by an agency of the Federal Government, and in obligations of the Federal Government such as GNMA, FNMA and FHLM i
bonds and certificates or State and Municipal bonds rated BBB or higher by Standard and Poors or Baa or higher by Moody's Investment Services; and (c)
For a reasonable time, not to exceed 60 days, the Trustee is authorized to hold uninvested cash, awaiting invest ment or distribution, without liability for the payment of interest thereon.
Section 7.
Commingling and Investment The Trustee is expressly authorized in its discretion:
(a)
To transfer from time to tire any or all of the assets of the fund to any common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled with the assets of other trusts participating therein; and (b)
To purchase shares in any investment company registered under the Investment Company Act of 1940 ( 15 U.S.C.
80a-1 et seq.), including one that may be created, managed, underwritten, or to which investment advice is rendered, or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.
Section 8.
Express Power of the Trustem.,
Witheut in any way l
limiting the powers and discretion conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is l
expressly authorized and empowered:
l (a)
To sell, exchange, convey, transfer, or otherwise dispose 3
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of any property held by it, by public or private sale, as necessary to allow duly authorized withdrawals at the joint request of the Grantor and the NRC to reinvest in securities at the direction of the Grantor; (b)
To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; (c)
To register any securities held in the Fund in its own name, or-in the name of a nominee, and to hold any security in bearer form or in book entry, or to combine certificates representing such securities with certificates of the same issue held by the Trustee in other fiduciary capacities, to reinvest interest payments and funds from matured and redeemed instruments, to file proper forms concerning securities held in the Fund in a timely fashion with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even though, when so deposited, such securities may be merged and held in bulk in the name of the nominee or such depository with other securities deposited therein by another person or to deposit or arrange for the deposit of any securities issued by the U.S.
Government, or any agency or instrumentality thereof, with a Federal Reserve Bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; (d)
To deposit any cash in the Fund in interest-bearing accounts maintained or savings certificates issued by the Trustee, in its separate corporate capacity, or in any other banking institution affiliated with the Trustee, to the extent insured by an agency of the Federal government; and (e)
To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 9.
Taxes and Expenses All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund. All other expenses incurred by the Trustee in connection with the administration of this Trust, including fees for the legal services rendered to the Trustee, the compensation of the Trustee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid from l
the Fund.
l Section 10. Annual Valuation.
After payment has been made into this standby trust fund, the Trustee shall annually, at least 30 4
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l days before the anniversary date of receipt of payment into the standby trust fund, furnish to the Grantor and to the NRC a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. The failure of the Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and the NRC, or State agency, shall constitute a conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the. statement.
Section 11. Advice of Counsel.
The Trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder.
The Trustee shall be fully protected,.to the extent permitted by law, in acting on the advice of counsel.
Section 12. Trustee comnensation. The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing with the Grantor. The Trustee shall have the right to charge its fee against the Trust in the event the Grantor does not pay it within 90 days of being invoiced. (See Schedule C.)
Section 13. Successor Trustee.
Upon 90 days notice to the NRC, the Trustee may resign; upon 90 days notice to NRC and the Trustee, the Grantor may replace the Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a successor Trustee and this successor accepts the appointment. The successor Trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the successor Trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor Trustee the funds and properties then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the resignation'of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions. The successor Trustee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the NRC.or State agency, and the present Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts contemplated by this section shall be paid as provided in Section 9.
Section 14. Instructions to the Trustee.
All orders, requests, and instructions by the Grantor to the Trustee shall be in writing, signed by such persons as are signatories to this Agreement or such other designees as the Grantor may designate-in writing. The Trustee shall be fully protected in acting without inquiry in j
accordance with the grantor's orders, requests or instructions. If the NRC or State agency issues orders, requests, or instructions to the Trustee these shall be in writing, signed by the NRC, or State 5
agency, or their designees, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor, the NRC, or State agency, hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instruction from the Grantor and/or the NRC, or State agency, except as provided for herein.
Section 15. AmendE1ent of Agreement.
This Agreement may be amended by an instrument in writing executed by the Grantor, the Trustee and the NRC, or State agency, or by the Trustee and the NRC or State Agency, if the Grantor ceases to exist.
Section 16. Irrevocability and Termination.
Subject to the right of the parties to amend this Agreement as provided in Section 15, this trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee, and the NRC or State agency, or by the Trustee and the NRC or State agency, if the Grantor ceases to exist. Upon termination of the trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor or its successor.
Section 17. Immunity and Indemnification.
The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this trust, or in carrying out any directions by the Grantor, the NRC, or State agency, issued in accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from the trust fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in'the event the Grantor fails to provide such defense.
Section 18.
Thic Agreement shall be administered, construed and enforced according to the laws of the State of New York.
Section 19.
Interpretation and Severability.
As used in this agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each section of this Agreement shall not affect the interpretation or the legal efficacy of this Agreement. If any part of this agreement is invalid, it shall not affect the remaining provisions which will remain valid and enforceable.
IN WITNESS WHEREOF the parties have caused this Agreement to be executed by the respective officers duly authorized and attested as of the date first written above.
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.._.___._.___....._._..,y;.;;.,_.,;.,
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Attest *-
Framatome Cogema Fuels N//A>
Robert B. Hoffman s
President Attest:
Wachovia Bank of N.C.,
NA g
N /d v,c, n,, a, w 81/Rhh /C6scQ E
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Specimen certificate of Events I
i Wachovia Bank of NC, NA j
301 North Main St.
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Winston - Salem, NC 27150 Attention:
Trust Division Gentlemen:
i In accordance with the terms of the Agreement with you dated I
10/15/93, I, Secretary of Framatome Cogema Fuels, l
hereby certify that the following events have occurred:
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1.
Framatome Cogema Fuels is required to commence the j
i decommissioning (hereafter called the i
decommissioning) of its facility located at i
Lynchburg, Va.
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2.
The plans and procedures for.the commencement and conduct of the decommissioning have been approved i
by the United States Nuclear Regulatory Commission, or its successor, on (copy of approval attached).
3.
The Partnership Board of Framatome Cogema Fuels has adopted the attached resolution authorizing the commencement of the decommissioning.
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Secretary of Framatome Cogema Fuels I
i Date i
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-..-. i Specihten' Certificate of Resolution i
I, do hereby certify that I am the Secretary of Framatome Cogema Fuels, a partnership, and that the resolution listed below was duly adopted at a meeting of this Partnership's Board on 19_.
IN WITNESS WHEREOF, I have hereunto signed my name this day of 19 _..
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Secretary
- RESOLVED, that this Partnership Board hereby authorizes the President, or such other employee of the Company as he may j
designate, to commence decommissioning activities at Framatome Cogema Fuels in accordance'with the terms and conditions described to this Board at - this - meeting and with such other terms and conditions as the President shall approve with and upon the: advice of Counsel.
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.i Schedule A This agreement demonstrates financial assurance for the following cost estimates for the following licensed activities:
U.
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Nuclear Regulatory Commission License Number:
SNM -1168 Name and Address of Licensee Framatome Cogema Fuels Mt. Athos Rd. Rt. 726 Lynchburg, Va. 24504' Address of Licensed Activity Framatome-Cogema Fuels Mt Athos Rd. Rt. 726 Lynchburg, Va. 24504 Cost Estimates for Reaulatory Assurances Demonstrated by this
-Agreement
$5,116,800.00 1
1 The cost estimates listed here were last adjusted and approved by the NRC on. October 15, 1993.
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Schedule B l
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l Amount $5.116.800.00 l
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As Evidenced By: Letter of credit i
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f Schedule C Wachovia Bank of NC, NA, Trustee's foes shall be $2,500.00 annually 11