ML20199K287

Forwards Request for Addl Info Re 860507 Request for Transfer of Control of Ga Technologies,Inc to Ga Technologies Corp.Response Requested by 860725

ML20199K287
Person / Time
Site:	General Atomics
Issue date:	07/03/1986
From:	Bernard H Office of Nuclear Reactor Regulation
To:	Pritchard J WINTHROP, STIMSON, PUTNAM & ROBERTS
References
NUDOCS 8607090113
Download: ML20199K287 (5)

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July 3, 1986 o 4 Docket No. 50-089/163 Mr. John Pritchard Winthrop, Stevenson, Putnam and Roberts 40 Wall Street New York, New York 10005

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION IN REGARD TO GA TECHNOLOGIES INC. TRANSFER OF OWNERSHIP TO G.A. TECHNOLOGIES CORPORATION The staff has completed an initial review of your request of May 7,- 1986, for transfer of control of GA Technologies Inc. to G. A. Technologies Corporation and has identified the need for the additional information indicated in the attachment. Please respond by July 25, 1986.

Following receipt of your responses, we will continue with the review. If you have any questions, contact me at (301) 492-8529.

Sincerely yours, Original signed by Harold Bernard, Project Manager Standardization and Special Projects Directorate Division of PWR Licensing-B

Attachment:

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'+....* July 3, 1986 Docket No. 50-089/163 Mr. John Pritchard Winthrop, Stevenson, Putnam  ;

and Roberts 40 Wall Street New York, New York 10005

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION IN REGARD TO GA TECHNOLOGIES INC. TRANSFER OF OWNERSHIP TO G.A. TECHNOLOGIES CORPORATION The staff has completed an initial review of your request of May 7,1986, for transfer of control of GA Technologies Inc. to G. A. Technologies Corporation and has identified the need for the additional information indicated in the attachment. Please respond by July 25, 1986.

Following receipt of your responses, we will continue with the review. If you have any questions, contact me at (301) 492-8529.

Since ely s, .

> c l

l Harold ernard, Project Manager Standardization and Special Projects Directorate Division of PWR Licensing-B

Attachment:

As noted

Attachment REQUEST FOR ADDITIONAL FINANCIAL INFORMATION GA TECHNOLOGIES INC.

1. Please provide copies of the most recent audited annual financial statements and accompanying notes for both GA Technologies Inc., (GA) and General Atomic Technologies Corporation (GATC). Such statements should include income statement, balance sheet, and statement of sources and applications of funds. Also provide copies of comparable statements for the previous year.

2. Provide projected financial statements (comparable to those in item No. 1, above) including any notes thereto for GA (assuming the merger with GATC) fer the years 1987 and 1988.

3. Describe how, based on the. actual and projected financial statements, all costs of operating NRC-licensed facilities will be funded by GA's ongoing business. Indicate the sources (and amounts from each) if other funds are expected to be needed.

4. Please provide a detailed estimate of.the costs to decommission GA's high enriched nuclear fuel fabrication facility, stating what is included in such costs, the assumptions made in estimating the costs and the type of decomissioning contemplated. An update. of the licensee's cost estimate in its June 15, 1979 submittal to NRC would be appropriate.

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5. GATC's application for the transfer of control of GA (dated May 7, 1986) indicates at pp. 5-6 that an organization (Valley Pines Associates) external to the licensee is responsible for funding the eventual decommissioning costs of the high enriched nuclear fuel fabrication facility. Please provide the following information regarding funding of these decommissioning costs:

a. Explain in detail the contractural assurances that GA has from Valley Pines regarding payment of the decomissioning costs estimated in item No. 4, above. Indicate any limitations on the amount of costs Valley Pines is obligated to reimburse.

b. Describe Valley Pines' sources of funds to pay such costs. Are such funds currently set aside by Valley Pines? If not, describe the future funding plan,

c. If actual decomissioning costs exceed Valley Pines' obligation

_ or ability to pay, ir.dicate the sources of funds (and amounts for each) to cover the additional costs. Also, assuming a

hypothetical that Valley Pines is unable to pay future decommissioning costs, what would be GA's alternate source of l funds?

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d. What assurances exist that decommissioning funds available from Valley Pines or other sources will not be diverted to other uses by GA? ,

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6. GATC's May 7, 1986 application indicates that the combined decommissioning costs for the hot cell, the two Triga research reactors, and the low enriched nuclear fuel fabrication facility are estimated to total between

$3.3 million and $5.3 million. Please state what is included in such costs for each facility, the assumptions made in estimating the costs, and the type of decommissioning contemplated for each facility. An update of the licensee's cost estimates in its June 15, 1979 submittal to NRC would be appropriate. Indicate the projected sources of funds for decommissioning each facility and the estimated dollar amount projected to be available from each source.

7. If maintenance or surveillance of any of the decommissioned facilities is expected to be required, indicate the estimated annual costs of those activities. Also indicate what is included in the estimate, assumptions made in estimating costs, and the intended source of funds to cover these costs.

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