ML20199A773

Forwards Financial Assurance Instrument Security Evaluation Recently Performed by TC Johnson.Evaluation Indicates Number of Items Applicable to Facilities Decommissioning Section Projects,Need to Be Corrected

ML20199A773
Person / Time
Issue date:	01/16/1998
From:	Jim Hickey NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Johnson T NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
REF-WM-3 NUDOCS 9801280085
Download: ML20199A773 (2)

Text

_ _ _ _ _ _ - _ _ _ _ _ - _ _ - -

January 16i19985 i

- MEMORANDUM TOi : Timothy C. Johnson Section Chief .

.- . - Fccilities Decommissioning Section Low Level Waste and Decommissioning .

j

. Projects Branch.

Division of Waste Management, NMSS

-FROM: .

John W N. HickeyiChiefE(Original signed by]

Low-Level Waste and Decommissioning

- Projects Branch Division of Waste Management, NMSS

SUBJECT:

FINANCIAL ASSURANCE INSTRUMENT SECURITY EVALUATION L I am attaching a copy of the f:nancial assurance instrument security evaluation recently performed by T. C. Johnson (see Attachment 1). The evaluation indicates a number of items applicable to Facilities Decommissioning Section prcjects that need to be corrected.

Attachment 2 is a table that outlines these items and the needed corrective actions. Please provide us with your corrective actions by February 13,1998. L. Bykoskl and T. C. Johnson will provide any assistance you need.

Attachments: As stateu iN CONTACT: L. Bykoski, DWM/NMSS i /

(301) 415-6754 WC l T. C. Johnson, DWM/NMSS wlV i -

(;01)415-7299 W'#

TICKET: N/A($/

~ DISTRIBUTION: h-ICentral File LLDP r/f NMSS r/f RJohnson

. PUBLIC LBykoski T3 receive a copy of this document in smalt box on "OFC:" line enter: "C" = Copy without attachmentlenclosure; "E" = Copy with attachmentienclosure;"N" = No copy P,ath & File Name: AS:\DWM\LLDP\TCJ\FAAUDTJ CFC LLDI? k LLDP _ )l  !

NAME~ -TCJ n/bg Jh y DATEI- 1/h98 il /98

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PDR WASTE WPt-3 PDR

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NUCLEAR REGULATORY COMMISSION WASHINGTON D.C. 20MMX)01 -

4 9..* . . . . ,e January 16, 1998.

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L_ MEMORANDUM TO: - Timothy C. Johnson, Section Chief l- Facilities Decommissioning Section I-Low-Level Waste and Decommissioning Projects Branch Division of Waste ManagementyMSS FROM: John W. N. Hickey, Chief =

Low-Level Waste and Decommissioning -

Projects Branch Division of Waste Management, NMSS 3UBJECT: FINANCIAL ASSURANCE INSTRUMENT SECURITY EVALUATION  !

k I am attach :g a copy of the financial assuranc : instrument security evaluatior, recently performed by T. C. Johnson (see Attachment 1). The evaluation indicates a number of items

' applicable to Facilities Decommissioning Section projects that need to be corrected.-

Attachment 2 is a table that outlines these items and the needed corrective actions. Please provide us with your corrective actions by February 13,1998. L Bykoski and T. C. Johnson will provide any assistance you need, Attachments: As stated CONTACT: L Bykoski, DWM/NMSS (301)415-6754 T. C. Johnson, DWM/NMSS (301)415-7299 I

p* *cg ff+ t UNITED STATES s E NUCLEAR RECULATORY COMMISSION e $ f WAsHINGTCN, D.C. 20pMoot t

January 14, 1998

- MEMORANDUM TO: John W. N. Hickey, Chief Low Level Waste and Decommissioning l Projects Branch Division of Waste Management FROM: Timothy C. Johnson, Section Chief c acilities Decommissioning Section -

Low Level Waste and Decommissioni Projects Branch Division of Waste Management

SUBJECT:

FINANCIAL ASSURANCE INSTRUMENT SECURITY ENALUATION in accordance with Management Directive 8.12, Decommissioning Financial Assurance Instrument Secunty Program." on December : ) and 31,1997, and January ? 1998, I conducted an evaluation of the financial assurance instruments held within the NMSS Headquarters instrument safe. My evaluation was based on the evaluation form attached as Attachment 1. I also checked to venfy that current financial assurance information is in the Licensing Tracking System (LTS).

My findings are provided in Attachment 2. No instuments were missing. The instruments are being stored in a GSA approved safe in accordance with Management Directive 8.12. In general, the inventory log should be more rigorously filled out to ensure that proper dates, instruments, and signatures are identified. Outdated instruments should be removed from the safe and returned to the licensee. When new instruments are submitted, this information needs to be included not only in the inventory log, but also the inventory control list. Note that this was a recommendation in L. Bykoski's evaluation of December 1996, but has not been fully implemented Entries in the inventory control log should also be more complete. Note that this was also a recommendation in L. Bykoski's evaluation oi December 1996, but has not been fully implemented. For almost all NMSS licenses requiring financial assurance, the LTS needs to be updated. Not all the LTS update recommendations made in L. Bykoski's December 1996 evaluation appear to have been incorporated. While recommendations were forwarded to the appropriate groups, there was no formal followup to ensure resolution of the open items. In the future, resolution of open items need to be formally tracked to ensure proper closure.

Attachments: As stated

Contact:

TCJohnson, DWM/NMSS (301)415-7299 p 1, n 1g g n/'

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Financial Assurance instrument Evaluation Comments -

<- E . Inventory I.oa Sheets -

Most en; ries under " Signature of Person Removing or Returning instrument and Date" use initials and not signatures.- Signatures should be used for these entriesL Also, many entries do not have dates. Dates should be included for all entnes.

2. Kerr-McGee. Cimarron Need to remove superseded parent guarantee documents and return to licensee.

3. . Babcock & Wilcox Need to remove outdated instruments.

The Morgan letter of credit is undated - should this be.1218-%?

The Scotiabank letter of credit amendment dated 7 28 97 was not on the inventory log.

Inver'orylog sheet dates do not me' n some 1str ament dates.

Need to check the BWT standby trust value of $16,832,000.

4. Framatome t

[ Remove outdated instruments.

. 5. ' Siemens Was a parent guarantee instrument submitted with the 12-20-96 CFO and auditor's l'etters?

-if so, it should be checked to see if it is still valid and whether or not it has been superseded,

- The standby trust amendment dated 4-16-97 was not listed correctly on the inventory log.

Need to remove outdated instruments.

The inventory log shows Parent Guarantee Amendment No.1. Need to verify what this is, in the safe are standby trusts from Wactovia Bank and First Citizens Bank and a standby trust amendment from Bank of New York. Need to determine which of these standby trusts are valid and whit,h trust the amendment applies io.

6. NFS The escrow agreements dated 2-17-97 and 9-24 97 are not shown on the inventory log.

Need to remove outdated instruments.

Attachment 2 1

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l .. 7. - Clo.w

~ Need to remove outdatcd instruments. .

8. Jefferson Provino Ground f..

Remove outdated instruments.

The Statement of Intent is undated. Need to have it dated.

9.- Fvrt St Vrain

- The license was terminated in August 1997. The instruments need to be canceled and returned to the licensee. i

10. Cintichem The standby trust document is not an original. Need to obtain an originalif possible.

11. f..olycorp It appears that the parent guarantee documents dated 8-3194 have been superseded if so, remove the outdated parent guarantee instrument.

12. Hartley & Hartley. SCA It appears that insurance policy documents dated 3-3194 and 4-26-94 have been-superseded. if so, these documents should be removed.

.13. Hartlev & Hartley. MDNR lt appears that the statement of intent dated 9-5-95 has been superseded. Remove outdated instruments.

.14. Whittaker The letter of credit number is different from that stated on Schedule A of the standby trust.

Need to ensure that the standby trust properly references the correct letter of credit.

15. ~ Seouoyah Fuels

- There are two eccrow agreements in the safe. Has one been superseded? If so, please remove the superseded instrument.

116. General Electric

- Need to remove superseded self-guarantee documents.

l *-

,19. Westinohouse The Westinghouse financial assurance instruments in the safe were not listed on the

inventory log.

?O. Rio Alaom. Lisbon Have the parent guarantees dated 3-21-91,6-25-92, and 6-8-95 been superseded? If so, they should be removed from the safe.

l

21. Kennecott. LBar The letter of credit is issued to Sohio Westem and not Kennecott. Is this an acceptable name for the licensee?

22. Pathfindet Lucky Mc Have the letters of credit issued by the Banque National de Paris been superseded? If so, they should be removed from the safe.

23 ARCO. Bluewater There is only a copy of the standby trust. The original should be located, if possible 24, Pathfinder. Shirlev Basis Have the letters of credit issued by the Banque National oe Paris been superseded? If so, ;

they should be removed from the safe. '

25, Quivera It appears that the parent guarantees dated 3-21-91,6-8-95, and 6-26-96 have been superseded. If so, they should be removed from the safe.

26. Rio Aloom. Smith Ranch Superseded and draft copies of the parent guarantee should be removed from the safe.

-4 2.7, Licensino Trackino System The Licensing Tracking System (LTS) needs to be updated for the following licenses:

ARCO, Bluewater (SUA 1470) not in LTS Atlas, Moab (SUA 917)

- Envirocare (SUA-1559)

Exxon, Highlands (SUA 1139)

Homestake, Milan (SUA 1471)

Sohio Westem, LBar (SUA 1472)-

Kennecott, Sweetwater (SUA 1350)

Pathfinder, Lucky Mc (SUA-672)

Pathfinder, Shiriey Basin (SUA-442)

Petrotomics (SUA-551)

Plateau Resource:: (SUA 1371)

Ouivera, Ambrosia Lake (SUA 1473)

Rio Algom Lisbon (SUA 1119)

Rio Algom, Smith Ranch (SUA 1548)- not in LTS Umetco, White Mesa (SUA 1358)

UNC, Chur:h Rock (SUA 1475)

BWX (SNM 2001)

BWX (SNM-42, SNM 414)

BP Chemicals (SUB-908)

Cabot, Boyertown (SMB 920)

Cabot, Reading and Revere (SMC-1562)

Chemetron (SUB 1357)

Cintichem (SNM-639) - not in LTS Dow (21-00265-06, STB 527, R-108)

Fansteel (SMB-911)

General Atomics (SNM-696, R-67, R-38)

General Electric (vanous licenses)

Hartley & Hartley, MDNR - not in LTS Hartley & Hartley, SCA Kerr McGee, Cimarron (SNM-928) - not in LTS McDermott Technologies (SUB-1259, BPM-34-03043-03) - not in LTS Molycorp (SMB-1408) - not in LTS Nuclear Fuel Services (SNM-124)

RMI (SMB-602)

Sequoyah Fuels (SUB-1010)

Shieldalloy (SMB-743, SMB-1507)

Siemens (SNM-1227)

Department of Commerce, NIST (SNM-362)

The above LTS entries need to be updated to reflect the correct name of the licensee; the correct instrument type, issuer, and amount; and whether the instrument has been approved and the correct date of approval. Some of the uranium milllicense entries have the number of the letter of credit, bond, etc. These numbers should be removed from the LTS as the LTS is not a controlled database.

r .

.The following licenses have listings in the LTS; but there are no instruments in the safe:

Amencan Nuclear (SUA 667).

- Bear Creek (SUA 1310)

Cogema (SUA 1341)

Crow Butte (SUA 1534).

- Intemational Uranium (SUA 1558)

Pathfinder (SUA 1540)

Power Resources (SUA 1511)

Umeteo (SUA-648)

U.S. Energy (SUA 1524)

Westem Nuclear (SUA 56)-

Baltimore Gas & Electric (SNM-2505)

Massachusetts inetitute of Technology (SNM 986)

Pennsylvania State Univ. (dNM 95)

Purdue Univ. (SNM-142)

The LiS entries for the above licenses need to be checked to venfy that financial assurance is required; that instruments have been provided and we know where the instruments are (if the

! instruments arc not in Regional safes, the instrume.a neea ;o De forwarced to DWM or the Regions for placement in the instrument safe); and the LTS entries need to be updated as necessary.

I t

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Facilities Decommissionino Section Financial Assurance Evaluation Forfow-un ite.ns ,

Action Needed Disposit;on Status item Finding Kerr-McGee, Cimarron: 11 Remove the superseded OPEN 1.

appears that there are documents and return originals to superseded instruments in the licensee.

safe.

Jefferson Proving Ground: It Remove the superseded OPEN 2.

appears that there are documents and return originals to superseded instruments in the licensee.

safe.

Need to have the statement of The Statement of Intent is intent dated.

undated.

CLOSED l

3. Fort St. Vrain: The license was Remove the documents and Instruments returned to licensee terminated in August 1997, but return originals to licensee. on 1-8-98. f instruments remain in the safe.

Hartley & Hartley, MDNR: It Remove the superseded OPEN 4.

appears that the statement of documents and return originals to intent dated 9-5-95 has been licensee.

superseded.

Westinghouse: Instrurqents in the Add instruments to inventory log. OPEN 5.

safe are not listed on the inventory log.

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' Attachment 2

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The LTS contains outdated The LTS entnes need to be OPEN

6. -

information for the following updated to reflect the correct licenses: name of the licensee; the correct aristrument type, issuer, and Chemetron (SUB-1357) amount; and whether the Hartley & Hartley .MONR - not in instrument has been approved -

-LTS and the correct date of approval.

Kerr-McGee, Cimarron (SNM-928) - not in LTS

.aa a 5