ML20150B884

Review of Lic Amend Appl & Suppl , 780313 & 780403 Re Decontamination Plan,Costs & Financial Plan

ML20150B884
Person / Time
Site:	07000824
Issue date:	11/06/1978
From:	Ketzlach N NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
NUDOCS 7811080347
Download: ML20150B884 (3)

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1. %, UNITED STATES 3$ 4 NUCLEAR REGULATORY COMMISslON  ;

.jh2 y WASHINGTON, D. C. 20555 Q:O]

DOCKET NO.: 70-824 APPLICANT: Babcock & Wilcox FACILITY: Lynchburg Research Center

SUBJECT:

REVIEW 0F LICENSE AMENDMENT APPLICATION DATED APRIL 20, 1978 AND SUPPLEMENTS DATED JANUARY 20, 1978, MARCH 13,1978 AND APRIL 3, 1978 I Introduction Babcock & Wilcox, Lynchburg Research Center (LRC),by application dated April 20,19~ 8, has submitted a plan for the future decontamination of the places of use and sites authorized by Materials Licen a No. SNM-778 l so that they can be releard for unrestricted use. The plan includes an estimate of the costs u >olved and the financial arrangements that have been made to insure that adequate funds will be available to cover

, the costs at the time of decommissioning.

1 II Decontamination Plan and Costs The decontamination plan concerns all areas in the facility where radioactive materials (both fissile and non-fissile) have been handled '

l pursuant to License No. SNM-778. The LRC has had much experience in the decontamination of parts of their facilities in the course of the research activities.

The plan includes criteria for the dispositior' cf equipment and facilities in the following categories:

1. For sale to other fuel cycle facilities.

2. For sale to non-nuclear facilities.

3. For burial in an approved burial ground.

Equipment sold for use at another fuel cycle facility will have its exterior surfaces cleaned to levels permissible for restricted areas.

The licensee requested authorization (Table I of amendment application) to sell equipment to non-nuclear facilities after decontamination to 7gy o 70 M 7

l i . 2 levels tt:at are within the NRC guidelines'for termination of operating licenses for nuclear reactors (Regulatory Guide 1.86, dated June 1974).

The decontamination levels are essentially the same as those in the Division of Fuel Cycle and Material Safety (FCMS) guidelines of November 1976 (Annex C to most SNM licenses). Equipment disposed of for burial will not be decontaminated to levels appropriate to un-restricted use but will be cleaned to meet transportation regulations and safe handling requirements. The plan includes decontamination of all facilities and equipment to remain at the site to levels within the NRC guidelines for unrestricted use (Regulatory Guide 1.86).

The estimated cost for facility and equipment decontamination and burial is approximately 1.7 million dollars. The staff concluded the plan and the estimated cost are reasonable and adequate.

Upon completion of the decontamination of the LRC to levels acceptable for unrestricted use, a survey report will be prepared and submitted to the NRC. Release of the facility for unrestricted use will be made af ter approval by the NRC.

III Financial Plan The Babcock & Wilcox Company (a New Jersey corporation) by letter dated March 13, 1978 submitted a proposed financial decommissioning plan to assure that adequate funds will be available for decontamination of the LRC and four of their other SNM licensed facilities. The Babcock & Wilcox Company (hereinafter called the " Company") will notify the NRC after the close of each fiscal year whenever the Company has not met its obligations and the covenants and conditions of Promissory Note Agree-ments or whenever the working capital falls below the then currsnt estimated cost of decommissioning all their SNM licensed facilities.

Whenever either of the above conditions exists, the Company will provide an alternative financial plan satisfactory to the NRC.

Since the financial plan was submitted, the Babcock & Wilcox Company (the New Jersey corporation) has merged with J. Ray McDermott & Company, Inc. Babcock and Wilcox is now a wholly-owned subsidiary of McDermott and has retained its name but changed its state of incorporation from New Jersey to Delaware. By letter dated January 20, 1978 (

merger) the presidents of both companies declared that the (1) merger prior to the will not affect any substantive change in the obligations and responsibilities of Babcock New Jersey with respect to licenses, (2) all the obligations and

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3 liabilities of Babcock Delaware after the merger, including, without limitation, any indemnification agreements entered into by Babcock New Jersey with the NRC,and (3) the financial condition and resources of Babcock New Jersey will not be changed as a result of the merger.

The staff has evaluated the Company's financial plan and conditions of the merger agreement associated with the SNM licenses and finds that although it does not contain a financial surety arrangement that would guarantee decommissioning funds, it offers the assurance of corporate officials that adequate funds will be available when needed for decommissioning. With this commitment and considering the Company's resources to implement and finance the decommissioning plan, the staff finds that the estimated cost of decontaminating the LRC (1.7 million dollars) is a small fraction of the cash flow.

IV Conclusion The Babcock & Wilcox Company's plan for the future decontamination of the places of use and sites authorized by this license, so that they may be released for unrestricted use, and the financial arrangements, to ensure that adequate funds will be available to cover the costs at the time of decommissioning, provide satisfactory assurance that health and safety of the operating personnel, the public, and the environment will be protected. ,

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ppgav Norman Ketzlach v Fuel Processing & Fabrication Branch a Division of Fuel Cycle and p Material Safety Approved by - ' WM W. T. Crow l

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