ML20149H468

Submits Final Action That Will Clarify Procedural Requirements for U Recovery Licensee Surety Submittals. GL 97-03 Encl

ML20149H468
Person / Time
Issue date:	07/15/1997
From:	Rathbun D NRC OFFICE OF CONGRESSIONAL AFFAIRS (OCA)
To:	Murphy R GENERAL ACCOUNTING OFFICE
References
GL-97-03, GL-97-3, NUDOCS 9707240411
Download: ML20149H468 (5)

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July 15,1997 1

Mr. Robert P.. Murphy General Counsel General Accounting Office Room 7175

.441 G Street, NW Washington, DC 20548

Dear Mr. Murphy:

Pursuant to. Subtitle E of the Small Business Regulatory Enforcement Fairness

.L Actiof 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission is submitting a

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final action that will clarify procedural requirements for. uranium recovery licensee surety submittals. The enclosed generic letter is being transmitted to the NRC's uranium recovery-licensees.

The interpretation of 10 CFR.Part 40 Appendix A. generic letter includes anLrite licensees to include in their annual: surety updates the costs associatec with proposed revisions to decommissioning / reclamation plans submitted for NRC

- review, even if the staff has not completed a review of the plans.

In addition, the letter would specify the need to include'the groundwater

. reclamation costs in the sureties, and would provide guidance _on the proper t:

way to calculate sureties We have determined that this action is not;a " major rule"'as defined in -

5 U.S.C. 804(2).

We have confirmed this determination with the Office of Management and Budget.

Sincer ly,

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Dennis K. Rathbun 3 Director Office of Congressional) Affairs fperwh Md

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Ericlosure: Generic letter

' Identical letter sent to:

The Honorable Al Gore The Honorable Newt Gingrich DISTRIBUTION:

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Mr. Robert.P. Murphy General Counsel General Accounting Office' Room 7175 441 G Street, NW Washington -DC 20548

Dear Mr. Murphy:

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness-Act of 1996. 5 U.S.C. 801, the Nuclear Regulatory Commission is submitting a final action that will clarify procedural requirements for uranium recovery licensee surety submittals..

The enclosed generic letter is being-transmitted L

_to the NRC's uranium recovery licensees.

The generic letter includes an interpretation of 10 CFR Part 40, Appendix A, Criterion 9 that would recuire

. licensees to include in their annual surety updates the costs associatec with i

proposed revisions to decommissioning / reclamation plans submitted for NRC review, even if the staff has not completed a review of the plans.

In addition, the letter would specify the need to include the groundwater reclamation costs in the sureties, and would provide guidance on the proper.

way to calculate sureties.

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We have determined that this action is not a " major rule" as defined in 5 U.S.C. 804(2).

We havb confirmed this determination with-the Office of Management and Budget.

Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Generic letter Identical letter sent to: The Honorable Al Gore The Honorable Newt Gingrich DISTRIBUTION:

FILE CENTER PUBLIC NMSS r/f URB r/f CNWRA-ACNW CCain RIV DWM r/f

-Dir off r/f '

DOCUMENT NAME: S:\\DWM\\ URB \\DMG\\ FIN.SUR OFC UR h,,

URB \\ \\b_

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DWM f M NMSS OCA NAME-DGi @

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'CPaperiello DRathbun DATE 6/d /97 6h/97 dN97 6/ /97 6'/ /97 UFH CIAL RECURU COPY a

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- UNITED STATES L

NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS L

WASHINGTON, D.C. 20555 July 9,1997

- NRC GENERIC LETTER 97-03:. ANNUAL FINANCIAL SURETY UPDATE REQUIREMENTS FOR a

URANIUM RECOVERY LICENSEES l

Addressees '

Uranium Recovery Licensees and State Officials.

Purpose The U.S. Nuclear Regulatory Commission (NRC) is issuing this generic letter to notify i

addressees about certain procedural requirements for surety submittals. It is expected

-that recipients will review the information for applicability to their facilities and consider

. actions, as appropriate, to avoid problems. However, no specific action nor written response is required at this time.

'1 Description of Circumstances -

'j During' the November 1996 meeting with the uranium recovery industry, sponsored by the i

NRC and the National Mining Association, the staff clarified NRC general procedural:

requirements' for surety submittals. This letter documents these requirements for-licensees' reference in future surety submittals.

Discussion 1

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- Criterion 9 of 10 CFR Part 40, Appendix A, requhs licensees to. establish financial surety i

arrangements sufficient tq carry out the decentamination, decommissioning of the mill and g

' ~ ite,' and reclamation of any tailings or waste disposal areas. 'In its annual review of -

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. sureties, the staff generally has considered only oecommissioning, reclamation, and ground

! wate corrective action plans,- and revisions to those plans, that have been approved by NRC.

-i (Criterion 9 states that the annual surety adjustment should "... recognize any increases or decreases resulting from inflation, changes in plans, activities performed, and any other l conditions affecting costs." Therefore, licensee-proposed revisions to approved

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decommissioning, reclamation, and ground water corrective action plans are factors to be considered in the annual surety adjustment. To comply with the rule, any proposed revisions to decommissioning o_r reclamation plans submitted for NRC review and approval will need to t

be accompanied by an analysis of the change in cost to the approved plan. Such cost will L

. need to be accounted for in the surety'at the next annual surety update.

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GL 97-03 July 9,1997

'i Page 2 of 2 In addition, when considering the surety amount in an annual update, licensees should ensure that they are presenting the cost of romalning site reclamation and ground water correct lve action plans, rather than simply subtracting the cost of completed work from the current surety. Future submittals that do not provide a cost basis showing the acceptability of the proposed surety amount will not be accepted for review. Failure to resubmit a revised surety with acceptable cost basis will be subject to appopriate enforcement action.

Finally, a recent review of financial assurance instruments for uranium recovery licensees has indicated that many amended surety instruments are not being transmitted to the appropriate NRC address or addressee. As a result, there have been delays in the receipt of surety instru'ments, and non-receipt, in some cases. All surety instruments should be transmitted by certified mail, under a cover letter, from the licensee to the Branch Chief, Uranium Recovery Branch, Divistor' of Waste Management, U.S. Nuclear Regulatory Commission, Mail Stop T7J-9, Washington, D.C. 20555. The docket number should be clearfy identified on the transmittal letter and the surety instrument. Surety instruments should not be transmitted directly from banks or insuring organizations without a letter of transmittal from the licensee that clearly states the Souice Material Ucense number for the facility and the name of the licensee.

When required, information such as auditor reports, financial statements, or updated parent company documentation should be included.

It is expected that addressees will consider actions, as appropriate, to avoid problems, however, no specific action or written response is required.

If you have any questions about this. matter, please contact the technical contact listed below or your NRC project manager,

/ John T. Greeves, Director Division of Waste Management Office of Nuclear Material Safety and Safeguards Technical contact: Daniel M. Gillen, NMSS 301-415-7295 E-mail: dmg2@nrc. gov

Attachment:

List of Recently issued NRC Generic Letters i

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Attichm:nt -

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. GL 97 July 9,1997 Page 1 of 1 1

1 LIST OF RECENTLY ISSUED GENERIC LETTERS l

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' Generic!

Date of Letter ~

'Subiect issuance Issued To 1

l 97-02.

' REVISED CONTENTS OF, 05/15/97 ALL HOL DERS OF OLs -

'THE MONTHLY OPERATING -

FOR NPRs, EXCEPT THOSE

- REPORT-WHO HAVE PERMANENTLY CEASED OPERATIONS AND j

tf HAVE CERTIFIED THAT:

g FUEL HAS BEEN PER-

' MANENTLY REMOVED FROM THE REACTOR VESSEL L 97-01

' DEGRADATION OF CONTROL 04/01/97

. ALL HOLDERS OF Ols -

ROD DRIVE MECH'.NISM FOR PRESSURIZED WATER

_ NOZZLE AND OTHER VESSEL REACTORS,EXCEPT-L CLOSURE HEAD PENETRATIONS '

THOSE WHO HAVE PER-MANENTLY CEASED.

OPERATIONS AND HAVE 3

CERTIFIED THAT FUEL-i l

HAS BEEN PERMANENTLY REMOVED FROM THE REACTOR VESSEL 5

' 95-06,.

CHANGES IN THE OPERATOR

- 02/31/97 ALL HOLDERS OF OLs SUPP.1 LICENSING PHOGRAM

. (EXCEPT THOSE LICENSEES OF PERMANENTLY SHUTDOWN REACTORS WHO ARE NO LONGER.

d

. REQUIRED TO UTILIZE LICENSED '

REACTOR OPERATORS) FOR NPRs 96-07 INTERIM GUIDANCE ON 12/05/96-ALL HOLDERS OF OLs j

TRANSPORTATION OF AND DECOMMISSIONING STEAM GENERATORS FACILITIES WITH '

POSSESSION-ONLY L>

LICE.NSES FOR PRESSURIZED-

)

. WATER NPRs l

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.1 O'L *. OPERATING LICENSE-

' CP = CONSTRUCTION PERMIT l

(NPR = L NUCLEAR POWER REACTORS'

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