ML20155H092
| ML20155H092 | |
| Person / Time | |
|---|---|
| Site: | General Atomics, 07000734 |
| Issue date: | 11/05/1998 |
| From: | Asmussen K GENERAL ATOMICS (FORMERLY GA TECHNOLOGIES, INC./GENER |
| To: | Alexander Adams, Gaskin D NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20138L590 | List: |
| References | |
| 696-38-67-3004, NUDOCS 9811090338 | |
| Download: ML20155H092 (5) | |
Text
C~NERAL ATOM 9CE November 5,1998 696/38/67-3004 Via Express Dplivery Service Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555 ATTN: Mr. Alexander Adams, Jr.
Mr. Charles E. Gaskin j
Subject:
Docket Nos. 50-89,50-163 and 70-734; License Nos. R-38, R-67 and SNM-696, Respectively: Submittal of Nonproprietary Version of GATC letter of April 27,1998 (Re: Financial Assurance for Decommissioning)
References:
- 1) Asmussen, Keith E., Letter No. 696/38/67-2903 to U.S. Nuclear Regulatory Commission ATTN: Mr Alexander Adams, Jr. and Mr Charles E. Gaskin," Docket Nos. 50-89,50-163 and 70-734; License Nos. R-38, R-67 and SNM-696 Respectively: Submittal of Revised Parent Company Guarantee Re: Financial Assurance for Decommissioning," dated April 28,1998 i
- 2) Adams, Alexander Jr., letter to Dr. Keith E. Asmussen," REQUEST FOR WITHHOLDING INFOR.MATION FROM PUBLIC DISCLOSURE, FINANCIAL ASSURANCE FOR DECOMMISSIONING, dated September 14,1998 Gentlemen:
In April, General Atomics (GA) submitted a new parent company guarantee to replace, and not be in addition to, the guarantee dated September 9,1992 (Ref.1). At that time, GA enclosed a letter from GATC dated April 27,1998 and requested that it be withheld from public disclosure pursuant to 10 CFR 2.790. Subsequently, GA was requested (Ref. 2) to submit to NRC a nonproprietary version of the GATC letter suitable for release to the NRC Public Document Room (PDR). Enclosed is such a document labled "PDR COPY" wherein the G ATC proprietary information has been deleted and equivalent space replaced with dashes, i.e., "-
Also enclosed, as requested, is a " bracketed" version of the proprietary letter. This document simply identifies what portions of the subject letter are considered proprietary by use of brackets to enclose the proprietary information. The proprietary words inside the brackets are also lined out. This facilitates staff review of what is [proprictary info] and what is not. GATC proprietary information appears only on the first page of the letter. GA understands that the bracketed version of the April 27, 1998 letter will also be protected from public disclosure while being used, then destroyed or returned.
If you should have any additional questions regarding this matter, please do not hesitate to contact me at (619) 455-2823.
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Very truly yours, ho) 9811090338 981105'"
gDR Keith E. Asmussen, Director ADOCK 050 pu.v -
Licensing, Safety and Nuclear Compliance
Enclosures:
- 1) PDR COPY of GATC letter dated April 27,1998
- 2) Proprietary " Bracketed" version of GATC letter dated April 27,1998 L ir bN'
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Mr. Ellis W. Merschoff, Administrator, NRC Region IV (w/o enclosures) l o
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PDR COPY 1
GENERAL ATOMIC TECHNOLOGIES CORPORATION 3550 GENERAL ATOMICS court, SAN DIEGo, CALIFORNIA 92122-1194 April 27,1998 Director, Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission Washington DC 20555 l
Gentlemen:
General Atomics (GA)is owned by General Atomic Technologies Corporation (GATC). GATC is
- a parent holding company for its investments in companies including, but not limited to,
- General Atomics and General Atomics' subsidiaries, including -
Sequoyah Holding Corporation. All financial information used to demonstrate compliance with 10 CFR Parts 50 and 70 is that of General Atomics consolidated.
This Guarantee is made this April 27,1998 by General Atomic Technologies Corporation, a corporation organized under the laws of the State of Wyoming, herein referred to as " guarantor,"
to the U.S. Nuclear Regulatory Commission (NRC) on behalf of our subsidiary, General Atomics, 3550 General Atomics Court, San Diego CA 92121-1194.
1.
The guarantor has full authority and capacity to enter into this guarantee under its Bylcws, Articles of Incorporation, and the laws of the State of Wyoming, its state of incorporation.
Guarantor has approval from its Board of Directors to enter into this guarantee.
2.
This guarantee is being issued to comply with the provisions of an NRC/GA " Agreement" (see item 3 below) on an alternative method for compliance with regulations issued by the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. NRC has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 50 and 70, which require that a holder of, or an applicant for, a materials license issued pursuant to 10 CFR Part 70 and a holder or applicant for a research reactor license issued pursuant to 10 CFR Part 50 provide assurance that funds will be available when needed for required decommissioning activities.
3.
The NRC/GA Agreement on an alternative method of compliance with NRC's financial assurance regulations is described in Annex B to General Atomics' letter No. 696-2581 to NRC dated May 20,1996.
4.
Pursuant to the provisions of the NRC/GA Agreement, this guarantee is issued to provide financial assurance in the amount of $4,086,000 for decommissioning activities for license SNM-696 as required by 10 CFR Part 70 and Licenses R-38 and R-67 as required by 10 CFR Part 50, 5.
The guarantor has majority control of the voting stock for the following licensee covered by this uarantee:
s PDR COPY
PDR COPY
' General Atomics 3550 General Atomics Court
, San Diego CA 92121-1194 Facilities Include: GA's San Diego Facilities, licensed unJer SNM-698 TRIGA Reactor Facility, licensed under R-38 and R-67.
6.
Decommissioning activities as used below refers to the activities required by 10 CFR Parts 50 and 70 for decommissioning of facilities identified above.
7.
For value received from General Atomics, and pursuant to the authority conferred upon the guarantor by the unanimous resolution of its Directors, a certified copy of which is attached, the guarantor guarantees to the NRC that if the licensee fails to perform the required decommissioning activities, as required by License Nos. SNM-696, R-38 and R-i 67, the guarantor, at its option, shall:
(a)
Carry out the required activities, or (b)
Set up a trust fund in favor of the above identified beneficiary in the amount of
$4,086,000 for these activities. This amount of funds to be placed in the trust fund by guarantor may be adjusted to account for the sums paid by General Atomics towards the required decommissioning.
8.
The guarantor agrees to submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule annually within 90 days of the close of the parent guarantor's fiscal year.
9.
The guarantor also agrees to notify the beneficiary promptly if the ownership of the licensee or the parent firm is transferred and to maintain this guarantee until the new parent firm or General Atomics provides alternative financial assurance acceptable to the beneficiary.
10.
The guarantor agrees that within 30 days after it is disallowed from continuing as a guarantor for the facility under License Nos. SNM-696, R-38 and R-67, it shall establish an alternative financial assurance as specified in 10 CFR Parts 50 and 70 in the name of General Atomics unless General Atomics has done so.
11.
The guarantor as well as its successors and assigns agree to remain bound jointly and severally under this guarantee notwithstanding any or all of the following: amendment or modification of license or NRC-approved decommissioning funding plan for that facility; the extension or reduction of the time of performance of required activities; or any other modification or alteration of an obligation of the licensee pursuant to 10 CFR Parts 50 ar.d 70.
12.
The guarantor agrees that all bound parties shall be jointly and severally liable for all litigation costs incurred by the beneficiary, NRC, in any successful effort to enforce the agreement against the guarantor.
- 13. The guarantor agrees to remain bound under this guarantee for as long as General Atomics must comply with the applicable financial assurance requirements of 10 CFR Parts 50 and 70 for the previously listed facilities, except that the guarantor may cancel PDR COPY
PDR COPY
.this guarantee by sending notice by certified mail to the NRC and General Atomics, such cancellation to become effective no earlier than 120 days after receipt of such notice by both th,e NRC and General Atomics as evidenced by the return receipts.
14.
The guarantor agrees that if General Atomics fails to provide alternative financial assurance as specified in 10 CFR Parts 50 and 70, as applicable, and obtain written approval of such assurance from the NRC within 90 days after a notice of cancellation by the guarantor is received by both the NRC and General Atomics, from the guarantor, the guarantor shall provide such alternative financial assurance in the name of General Atomics or make full payment under the guarantee.
15.
If General Atomics or the guarantor substitutes a commercial letter of credit in the amount of $4,086,000 (as may be adjusted to account for the sums paid by General Atomics towards the required decommissioning) for the decommissioning activities, then this guarantee shall terminate and be returned to guarantor within 30 days after receipt of such notice by the NRC as evidenced by the return receipt.
16.
The guarantor expressly waives notice of acceptance of this guarantee by the NRC or by General Atomics. The guarantor also expressly waives notice of amendments or modification of the decommissioning requirements and of amendments or modifications of the license.
17.
If the guarantor files financial reports with the U.S. Securities and Exchange Commission, then it shall promptly submit them to the NRC during each year in which this guarantee is in effect.
18.
This guarantee replaces a guarantee to the U.S. Nuclear Regulatory Commission dated September 9,1992 and is not intended to be in addition to such guarantee.
I hereby certify that this guarantee is true and correct to the best of my knowledge.
General Atomic Technologies Corporation Originalsigned by Neal Blue Neal Blue, President State of California
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County of San Diego )
On April 27,1998 before me, Linda R. Eady, Notary Public, personally appeared Neal Blue, President of General Atomic Technologies Corporation, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or entity upon behalf of which the person acted, executed the instrument.
Witness my hand and official seal.
Original signed by Notary Signature of Notary Public PDR COPY