ML20198N172

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Responds to 970630 Reply to Which Forwarded Revised Invoice AM2558-97 for FY97 Annual Fee for QAP Approval Number 0227.Addl Payment for Invoice,Due & Payable within 30 Days of Ltr
ML20198N172
Person / Time
Site: 07100227
Issue date: 01/16/1998
From: Turdici J
NRC OFFICE OF THE CONTROLLER
To: Burzynski M
TENNESSEE VALLEY AUTHORITY
References
NUDOCS 9801200285
Download: ML20198N172 (2)


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UNITED STATES 1

NUCLEAR REGULATORY COMMISSION

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. January 16.-1998-i Tennessee Valley Authority ATTN: Mark J. Burrf:tski, Manager Nuclear Licensing 1

1101 Market Street Chattanooga, TN 37402-2801 Cear Mr. Burzynski:

- l am responding to your June 30,1997, reply to our April 22,1997, letter which forwarded revised invoice No. AM2558-97 for the FY 97 annual fee for Quality Assurance Program Approval No. 0227 (QA-0227). You state that the revised invoice is in error because TVA filed a request to downgrade QA-0227 from " User / Fabricator" to " User" prior to October 1,1997, (sic) and ceased any and all fabrication acilvities prior to September 30,1997. (sic) As o

explained below, revised Invoice AM2558-97 is correct and is due and payable.

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i As stated in 10 CFR Part 171.5, quality assurance program approvals are divided ime two mtjor groups: (1) those activities including design, fabrication and use of packaging are classified as ' User / Fabricator," fee Category 10B(1) of 1_0 CFR 171.16d, and (2) those activities -

for use only.of packaging are classified as " User," fee Category 10B(2). The " User / Fabricator" i

is held by the Certificate of Compliance (CoC) holder (usually a packaging owner) and includes the maintenance of all quality assurance-related documents. Fabrication need not be included 1

in a CoC holder's qwlity assurance program provided fabrication activities are not conducted, l

4 or are completed and the quality assurance records are maintained for each packaging.

' However, each CoC holder's quality assurance program must address design. Since TVA held

.CoC No. 6568 for the Model LL-60-150 packaging, TVA's quality assurance program approval -

(QA-0227) had to address design until February 4,1997, the date the CoC was transferred to Chem-Nuclear.

In the situation W)ere a CoC is transferrod, the original CoC holder retains the responsibility for all activities associated with that CoC until: (1) the NRC receives confirmation from the accepting organization taat they will accept responsibility for all Coc activities; and (2) the NRC

. haues a revised CoC showing the new CoC holder. Although TVA requested the transfer of Y

_ CoC No. 6568 to Chem-Nuclear on September 30,1996, the CoC could not be trar,sferred until Ch6m-Nuclear accepted the statements and representations for which the certificate was Issued.: Chem-Nuclear did so in their December 20,1996, letter. Therefore, although the authorization for fabrication activities may not have been necessary under QA-0227, other

" User / Fabricator" activities were required to be authorized under QA-0227 until February 4, J 1997, when the activities were covered by a quality assurance program approval held by

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Chem-Nuclear. Therefore,' QA-0227 was correctly classified as a " User / Fabricator" approval '

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. (fee Category 10B(1)) until February 4,1997.

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M. Burzynski In summary, " User / Fabricator" activities did not cease under QA-0227 until CoC No. 6568 was issued to Chem-Nuclear on February 4,1997. At that time the " User / Fabricator" activities were no longer required under TVA's QA-0227. The revised invoice correctly reflects a 50 percent proration of the FY 1997 annual fee for fee Category 10B(1) (" User / Fabricator") and 50 percent for 10B(2) (" User") as provided in 10 CFR 171.17(b)(2)(ii)A.

For the reasons stated above and ns explained in our April 22,1997, letter, revised invoice AM2558-97 ($36,8M)is correct, and is due and payable. We received your payment of

$950 (the original I waiced amount) and we applied a duplicate payment of $1,S00 for AM5127-97 to this invoice. Payment of the additional $34,275 is due within 30 days of this letter.

Sincerely, Original signed by James Turdici James Turdici, Director Division of Accounting and Finance Office of the Chief Finnncial Officer Distribution:

L. Tremper, OCFO l

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