ML20196D180

Confirms 881202 Telcon Re Draft Trust Agreement Provided on 881129.Agreement in Concert W/Ltr of Credit Acceptable in Principle & Meets NRC Decommissioning Rule Amends

ML20196D180
Person / Time
Site:	05000000, 05000603, 05000604
Issue date:	12/02/1988
From:	Rouse L NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Smelser J ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
References
NUDOCS 8812080231
Download: ML20196D180 (1)

Text

. ,

Docket Nos. 50-603 r 50-604

=: ' '* .

All Chemical Isotope Enrichm b Inc.-

ATTN: Mr. John H. Smelser, Jr.

Chief Executive Officer Pine Ridge Office Park DEC 0 21988 Suite 202-B 702 Illinois Avenue Oak Ridge, TN 37830  ;

Gentlemen:

i This is to confirm the telephone conversation today among Mr. Buddy Scruggs of (

AlchemIE and Mr. Peter Loysen and Mr. James Petersen of the NRC Staff. The r principal purpose of the conversation was to discuss the draft trust agreement i which A1ChemIE provided to us by telecopy on November 29, 1988. l i

Mr. Scruggs was advised that the draft trust agreement, in concert with a ,

letter of credit from a financial institution, is acceptable in principle and l 1

meets the intent of the NRC's decommissioning rule amendments. Mr. Scruggs  !

was also advised that the regulations require that the financial assurance l l mechanisms be submitted as part of the application for licenses, and not to be [

4 executed after issuance of licenses. When the trust agraement and letter of r credit are executed, the letter sebmitting them to us should include the means of periodically adjusting your estimate of the cost of decommissioning and the

funding level, as required by 10 CFR Part 50.75(d). As discussed, we intend to 4 review with Department of Energy officials, who have a direct interest in this  ;

matter, your cost estimate as part of our determination of the adequacy of i available funds for decommissioning.

• i 1 To assist AlchemIE in finalizing its financial assurance mechanisms,  ;

j Mr. Loysen described the recently prepared document, "Draf t Standard Format and '

i Content of Financial Assurance Mechanisms Required for Decommissioning under

10 CFR Parts 30, 40, and 70," dated October 1988. While this document was f prepared for use by applicants for and holders of materials licenses, the  !

requirements would be applicable for the type of mechanism 1, which you have >

, proposed. These are described in the document as letters of credit and I l

standby trust funds. A copy of the entire document, including the appendices  !

which provide examples of the various mechanisms, is enclosed. [

Sincerely, j

! ORIGINAL SIGNED BY JOHN P. ROBERTS i Leland C. huse, Chief f Fuel Cycle Safety Branch  !

Division of Industrial and I y Medical Nuclear Safety i

Enclosure:

$8 As stated

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. , Distribution: W10 En'c1 l Ed  ! Docket 50-603/6041 POR~ NRC File Center' IMSB R/F IHAF R/F yI

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