ML20154K384

Forwards Enhanced Facts Re Adequacy of Funding for Decontamination & Decommissioning (D&D) of Facilities. Intends to Establish Funded Reserve for D&D at Completion of Sale of Unclassified Equipment Not Needed for Production

ML20154K384
Person / Time
Site:	05000000, 05000603, 05000604
Issue date:	09/12/1988
From:	Smelser J ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
To:	Thompson H NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20154K388	List: ML20154K384 ML20154K770 ML20154K775
References
CON-#488-7104 24742, CP, CP-OL, NUDOCS 8809260004
Download: ML20154K384 (4)

Text

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All Chemical isotope Enrichment, Inc.

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ptt td** s p Nsea,o, September 12, 1988 4 (' Q U. S. Nucioar Regulatory Commission Document Control Desk i Offico Nuclear Matorials Safety & Safeguards '

Washington, DC 20555 Attention: Mr. Hugh L. Thompson, Jr. ,

64-A NMSS Docket Material Gentlemon:

Supplementing our letter of July 22, 1988 and August 12, 1988 transmitting financial information, we are providing enhanced facts regarding the adequacy of funding for decontamination and deconanissioning of both the existing CPDF facility and the proposed Oliver Springs facility.

In order to provido the NRC the assuranco it deservos, wo have prepared tha following facts:

l 1. Abnormal Abort: The Department of Energy must re-take i

possession of all classified and contaminated equiph:ent  !

i and material should A1ChemIE incur unexpected i difficulties. For this purpose A1ChemIE, Inc. has I provided DOE with a two million dollar (S2,000,000) cash escrow.  :

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2. Normal Operation: A1ChemIE, both at CPDF and GCEP has

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and will continue to maintain the decontamination r equipment required to decontaminato the centrifuge and  ;

related equipment. This equipment is more than i

adequate to decontaminato in mass while the expected failure rato is only 2-4 machines per year, i nCO3 ,

, 3. Eventual Decommissioning: The estimated time for total VI 1  !

j decommissioning is twenty (20) to forty (40) years, g

G809260004 880912 l gR ADOCK0500g3 Pine Ridge Of fice Park. Suite 202 8 702 liknois Ave., Ook Ridge. TN 37830 (615) 482-0029 i

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U.S. Nuclear Regulatory Commission September 12, 1988 Pago 2 -

1 Assumption A- Docommissioning by outside firm (See l l International Technology Corporation - Proposals for CPDF and Oliver Springs).

CPDF Not Total Cost $3,109,250.00 l Oliver Springs Not Total Cost 2,180,227.00 t $5,289,~477.00 Loss

Combined Overhead Savings 300,000.00 Combinod Not Cost $4,989,477.00

( maammamanness Assumption B- Decommissioriing in-house with in-house i equipment and personnel.

CPDF Not Total Cost S 537,625.00 Oliver Springs Net Total Cost 840,723.00

,S1,378,348.00 Less: Combined Overhoc$ Ravings 300,000.00 t Combinod Net Cost 07 34 00 i

Though the above estimates assurte the worst case, A1ChemIE intends to establish a funded reserve for D&D at the i completion of the salo of the unclassified equipment that i is not nooded for its production f acilities at either CPDF '

or Oliver Springs. Based on the appraisals by Marshall and Stevens, Inc. we anticipate that approximately Twenty-Eight .

Million Dollars ($28,000,000.00) of equipment will be I released for sale. We further estimate that the cost of removal (GCEP) and shipment (Oliver Springs) will be l

approximately Eight Million Dollars ($8,000,000.00). It is our intention to reuerve Five Million Dollars (SS,000,000.00) as a contingency for decontamination and decommissioning cost.

l Upon completion of the start-up of both facilities, we intend to reevaluato actual cost for DGD and adjust our reserve accordingly. Normal operations will require I on-going disposal, thereby reducing our D&D reserve '

requirement. Annual adjustments are anticipated. i i

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U.S. Nuclear Regulatory Commission i September 12, 1988 l Page 3 In summary, A1ChemIE is presently adequately funded for the contingency of an unexpected abort and is prepared to i continually display such adequacy.  !

l Sincerely, ALCHEMIE, INC.

>l/)f?IYl- )

John H. Smelser, Jr.  !

' Chief Executive Officer l JHS/bc ,

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Enclosures:

ITC quote CPDF l ITC quote Oliver Springs  !

l Marshall and Stevens appraisal (classified)  !

Marshall and Stevens appraisal (unclassified) r A1ChemIE's Financials and Proforma ec: Dr. Thomas A. Clark, Jr./NRC i

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Service List a

Adjudicatcry File Atomic Safety and Licensing Board Panel Docket U.S. Nuclear Regulctory Commission ,

Washington, D.C. 20555*

! Atomic Safety and Licensing Appeal Board Panel U.S. Nuclear Regulatory Commission Washington, D.C. 20555* '

Atomic Safety and Licensing Board Panel J

U.S. Nuclear Regulatory Commission

Washington, D.C. 20555*

Docketing and Service Section

' Office of the Secretary

' U.S. Nuclear Regulatory Commission

! Washington, D.C. 20555*

Stephen A. Irving, Esq.

3 Attorney for AlchemIE, Inc.

702 S. Illinois Avenue Suite 202-B 1 Oak Ridge, TN 37830 l Dr. Emmeth A. Luebke j Administrative Judge

! 5500 Friendship Blvd., Apt. 1923N j Chevy Chase, MD 20815

) Morton B. Margulies, Chairman i Administrative Judge i 1 Atomic Safety and Licensing Board Panel  :

U.S. Nuclear Regulatory Commission Washington, D.C. 20555 i ,

j Dr. Oscar H. Paris *

! Administrative Judge l

) Atomic Safety and Licensing Board Panel i U.S. Nuclear Regulatory Commission l Washington, D.C. 20555*

Michael D. Pearigen l Deputy Attorney General j Tennessee Attorney General's Office J 450 James Robertson Parkway i Nashville, TN 37219-5025 3

l Bernard M. Bordenick j Ccunsel for NRC Staff l

U.S. Nuclear Regulatory Commission J MS 15-B-1d j Washington, D.C. 20555 i i I l E

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