ML20205S198
| ML20205S198 | |
| Person / Time | |
|---|---|
| Site: | General Atomics |
| Issue date: | 04/22/1999 |
| From: | Asmussen K GENERAL ATOMICS (FORMERLY GA TECHNOLOGIES, INC./GENER |
| To: | Alexander Adams NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| 38-67-3073, TAC-M98498, TAC-M98499, NUDOCS 9904260132 | |
| Download: ML20205S198 (14) | |
Text
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CENERAL ATOMN*E April 22,1999 38/67-3073 1
Via Express Delivery Service Document Control Desk U.S. Nuclear Regulatory Commission j
Washington, D.C. 20555 ATTN: Mr. Alexander Adams, Jr.
Subject:
Docket Nos. 50-89 and 50-163; License Nos. R-38 and R-67 Respectively:
Submittal of Response to Item No. I of Request for Additional Information Dated 1
April 14,1999 (TAC Nos. M98498 and M98499)
References:
- 1) Adams, Alexander, Jr., Letter to Dr. Keith E. Asmussen, REQUEST FOR ADDITIONAL INFORMATION (TAC Nos. M98498 and M98499), dated April 14,1999
(
- 2) Asmussen, Keith E., Letter No. 38/67-3009 to U.S. Nucl. sr Regulatory Com-I mission ATTN: Mr Alexander Adams, Jr.," Docket Nr - 0 89 and 50-163; License Nos. R-38 and R-67 Respectively: Submittal of Response to Request for Additional Information - \\ tem No. 6 (TAC Nos. M98498 and M98499),' dated q
April 28,1998 j
- 3) Weiss, Seymour H. and Robert C. Pierson, Letter to Dr. Keith E. Asmussen,
" Financial Assurance for NRC Licenses SNM-696, R-38, R-67, Docket Nos. 70-0734,50-89, and 50-163," dated July 9,1996 1
- 4) Asmussen, Keith E., Letter No. 696-2581 to U.S. Nuclear Regulatory Commission ATTN: Mr. Alexander Adams, Jr. and Mr. Charles E. Gaskin, " Docket Nos. 70-0734,50-89 and 50-163; Decommissioning Financial Assurance," dated May 20, 1996
Dear Mr. Adams:
This letter is in response to your recent request for additional information (Ref.1) regarding General Atomics' (GA's) submittal of a decommissioning plan and request for termination ofits TRIGA* Mark I and Mark F non-power reactor licenses R-38 and R-67. There were five (5) items in your request for additional information. While GA is preparing responses to each of the five items, the purpose of this letter is to address only item No.1.
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4 ltem No. I states, "By letter datedNovember 20,1998, you replied to question 6 ofour requestfor additionalinformation datedJanuary 16,1998, concerningfinancial assurancefor decommissioning. It is not clear if the accounts referred to in your reply are held in trust to be used 9
only.for decommissioning. Please address."
o%
The two accounts referred to in GA's letter dated November 20,1998 (Ref. 2) constitute a trust fund that was established as part of an NRC-approved (Ref. 3) alternative method of compliance with the fm' ancial assurance regulations. The " Alternative Method of Compliance" together with the 9904260132 990422
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3550 GENERAt. ATOMICS COURT. SAN DIEGO. CA 921211194 PO BOX 85608. SAN DIE GO. CA 92186 5608 (619)455 3000 l
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y Mr. Alexander Adams, Jr., U.S. NRC April 22,1999 38/67-3073 Page 2 corresponding " Trust Agreement (General Atomics Site)" specify that the subject monies are to be spent only for the decommissioning of General Atomics. The " Alternative Method of Compliance" was submitted previously (Ref. 4) and the " Trust Agreement (General Atomics Site)" is enclosed with this letter. In particular, your attention is drawn to Paragraphs 1 and 2 on Pages 5 and 6 of the
" Alternative Method of Compliance" and to Section 2 " Establishment of Fund" and Section 4
" Accounts" of the enclosed Trust Agreement.
If you should have any questions regarding this submittal, please do not hesitate to contact me at (619) 455-2823.
Very truly yours, h
Keith E. Asmussen, Director Licensing, Safety and Nuclear Compliance
Enclosure:
Copy of" TRUST AGREEMENT (General Atomics Site)", dated August 22,1996 O
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TRUST AGREEMENT (General Atomics Site)
TRUST AGREEMENT, the Agreement entered into as of August 22, 1996 by and between General Atomics, a California corporation, herein referred to as "the Grantor" or " General Atomics" and Sanwa Bank California, herein referred to as "the Trustee."
WHEREAS, Grantor desires to create a Trust to satisfy certain regulatory financial assurance requirements of the Nuclear Regulatory Commission ("the NRC") ;
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is wi.1. ling to act as trustee, NOW, THEREFORE, the Grantor and the Trustee agree as follows:
Section 1.
Definitions.
As used in this Agreement:
(a)
The term " Year" means the fiscal year of the Trust Fund, which shall begin the first day of the month of the month of execution of this Agreement.
(b)
The term " Trustee" means the trustee which enters into this Agreement and any successor Trustee.
l (c)
The terms "the Fund" and " Trust Fund" shall mean the trust fund established by this Trust Agreement.
(d)
The terms " Permanent Account" and " Current Account" shall mean the accounts described in section 4 (a) and (b) below.
?
Section 2.
Establishment of Fund.
The Grantor and the Trustee hereby establish a trost fund for the benefit of the nuclear decommissioning activities of General Atomics.
The Grantor and the Trustee intend that no third party shall have access to the Fund except as provided herein.
Section 3.
Payments Constitutina the Fund.
Payments made by Grantor to the Trustee for the Fund shall consist of cash.
The Fund shall include all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement.
The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided.
The Trustee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of the Fund, nor any duty to collect from the Grantor, any payments to the Fund.
Section 4.
Accounts.
The Trustee shall establish two accounts
("the accounts") in the Fund, as follows:
(a)
Permanent Account.
All sums deposited in this account shall accumulate and only be paid by the Trustee to the Grantor upon presentation to the Trustee of a Certificate duly executed by one of several designated officers of General Atomics and one of several designated Staff Members of the NRC.
The Certificate shall be in the form set forth in the specimen certificate, attached hereto as Exhibit A.
(b)
Current Account.
Sums deposited in this account shall either be paid out by the end of the Year or redeposited i
into the Permanent Account.
All sums remaining in the Current Account at the end of the last day of the Year shall be deposited in the Permanent Account on the first day of the next Year.
Sums in this account shall be paid by the Trustee to the Grantor upon written instructions by one of 2
several designated officers of General Atomics.
The written instruction shall be in a form set forth in the specimen instruction, attached hereto as Exhibit B.
Section 5.
Trust Manacement.
The; Trustee shall manage the principal and income of each account of the Fund separately.
The Trustee shall invest and reinvest the sums in each account without distinction between principal and income, in accordance with. general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of this section.
In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar w.ith such matters, would use in the conduct of an enterprise of a like character and with like aims; exceot that:
(a)
The Trustee is authorized to invest the Permanent Fund in time or demand deposits of the Trustee, to the extent insured by an agency of the Federal government; and (b)
For a reasonable time, not to exceed 5 business days, the Trustee is authorized to hold uninvested cash in the Permanent Fund, awaiting investment or distribution, without liability for the payment of l
interest thereon.
Section 6.
Comminclina and Investment.
The Trustee is expressly authorized in its discretion to:
(a)
Transfer from time to time any or all of the assets of the Fund to any common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to f
3
r 4
participate, subject to all of the provisions thereof, to be l
' commingled with the assets of other trusts participating therein.
(b)
Purchase shares in any investment company registered under the Investment Company Act of 1940 (15 U.S.C.
80a-1 et sec.), including one that may be created, managed, underwritten, or to which investment advice is rendered, or the shares of which are sold by the Trustee.
The Trustee may vote such shares in its discretion.
Section 7.
Transfer of Income.
The Trustee shall, on or before the first day of each calendar month, transfer all income earned by the Permanent Account from that account to the Current Account.
Section 8.
Express Powers of Trustee.
Without in any way limiting the powers and discretion conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:
(a)
To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale, as necessary for prudent management of the Fund; (b)
To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments, that may be necessary or appropriate to carry out the powers herein granted; (c)
To register any securities held in the Fund in its own name, or in the name of a nominee, and to hold any security in bearer form or in book entry, or to combine certificates representing such securities with i
4
certificates of the same issue held by the Trustee in other fiduciary capacities, to reinvest interest payments and funds from matured and redeemed instruments, to file proper forms concerning securities held in,the Fund in a timely fashion with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even though, when so deposited, such securities may be merged and held in bulk in the name of the nominee or such depository with other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the U.S.
Government, or any agency or instrumentality thereof, with a Federal Reserve bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; (d)
To deposit any cash in the Fund in interest-bearing accounts maintained or savings certificates issued by the Trustee, in its separate corporate capacity, or in any other banking institutions affiliated with the Trustee, to the extent insured by an agency of the Federal government; and (e)
To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 9.
Taxes and Excenses.
All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund.
All other expenses incurred by the Tructee in connection with the administration of this Trust, including fees for legal services rendered to the Trustee, the compensation of the Trustee to the extent not paid directly by the Grantor, and all other 5
I proper charges and disbursements of the Trustee shall be paid from the Fund.
Section 10.
Annual' Valuation.
After payment has been made into this Trust Fund, the Trustee shall annually, at leas,t 30 days after the end of the Year, furnish to the Grantor a statement l
confirming the value of the Fund.
Any securities in the Fund shall be valued at market value as of no more than 30 days before the end of the Fund Year.
The failure of the Grantor to object in writing to the Trustee within 60 days after the statement has l
been furnished to the Grantor, shall bar the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the statement.
Section 11. Monthly and Annual Statements.
The Trustee shall furnish monthly and annual statements to the Grantor setting forth the sums in each of the Permanent and the Current Accounts and the activity in those accounts during the prior month or year, respectively.
The form of these reports shall be in a manner the Trustee determines is appropriate and reasonable after consulting with the Grantor.
Section 12.
Advice of Counsel.
The Trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder.
The Trustee shall be fully protected, to the extent permitted by law, in acting on the advice of the counsel.
Section 13.
Trustee Comnensation.
The Trustee shall be entitled to reasonable compensation for its services from the Grantor, as may be agreed upon from time to time in writing with the Grantor.
1 Section 14.
Successor Trustee.
Upon 90 days notice to the Grantor, the Trustee may resign; upon 90 days notice to the 1
6 l
t
Trustee,.the Grantor may replace the Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a successor Trustee and this successor acceptc the appointment.
The successor Trustee shall have the same powers and duties as those conferred upon the Trustee hereunder.
Upon the successor Trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor Trustee the funds and properties then constituting the Fund.
i l
If for any reasons the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions.
The successor Trustee
)
shall specify the date on which it assumes administration of the 1
trust in a writing sent to the Grantor, and the present Trustee by certified mail 10 days before such change becomes effective.
j Any expenses incurred by the Trustee as a result of any of the acts contemplated by this section, shall be paid as provided in Section 9.
Section 15.
Instructions to the Trustee.
All orders, requests, and instructions by the Grantor or the NRC, respectively, to the Trustee shall be in writing, signed by such persons as are signatories to this agreement or such other designees as the Grantor or the NRC may designate in writing from time to time.
l The Trustee shall be fully protected in acting without inquiry in accordance with the Grantor's or the NRC's respective orders, requests, and instructions as described herein.
The l
Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor or the NRC has occurred.
The Trustee shall be fully I
7
protected in relying on any document it receives which it reasonably believes to be genuine.
The Trustee shall have no duty to act in the absence of such respective orders, requests, pnd instructions from the Grantor or the NRC, except as provided for herein.
Section 16, Amendment of Acreement.
This Agreement may be amended by an instrument in writing executed by the Grantor and the Trustee, provided that the Grantor and the Trustee shall give the NRC at least thirty (30) days advance written notice before any changes to this Agreement shall be effective.
Section 17.
Irrevocability and Termination.
Subject to the right of the parties to amend this Agreement as provided in Section 16, this trust shall be irrevocable and shall continue until terminated at the written agreement to the Grantor and the Trustee, provided that the Grantor and the Trustee shall give the NRC at least thirty (30) days advance written notice before the termination of this Agreement shall be effective.
Upon termination of the trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor or its successor.
Section 18.
Immunity and Indemnification.
The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this Trust, or in carrying out any directions by the Grantor or the NRC, issued in accordance with this Agreement.
The Trustee shall be indemnified and saved harmless by the Grantor and from the Trust Fund from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor fails to provide such defense.
i 8
Section 19 Governine Law.
This Agreement shall be administered,.
. construed, and enforced according to the laws of the State of California.
Section 20.
Interoretation and Severability.
As used in this i
Agreement, words in the singular include the plural and words in the plural include the singular.
The descriptive headings for each section of this Agreement shall not affect the interpretation or the legal efficacy of this Agretment.
If any part of this agreement is invalid, it shall not affect the remaining provisions which will remain invalid and enforceable.
3 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers duly authorized and the incorporate seals to be hereunto affixed and attested as of the date first written above.
ATTEST:
GENERAL ATOMI S Q
h
[/T#<'
mes R.
- Edwards, By 7
Secretary Joh E. Joneb
[ Seal]
Its Se or Vice President SANWA Ba d ifornia By Secretary (Seal) 8 Its h0CE Yl# I'
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Its Mi x
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EKHIBIT A
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CERTIFICATE Pur9uant to the terms of that certain Trust Agreement dated August 22, 1996 between General Atomics, as Grantor, and Sanwa
. Bank California, as Trustee, the Trustee is hereby instructed to deliver to General Atomics the sum of $
from the Permanent Account of the Trust Fund.
GENERAL ATOMICS By John E.
Jones Its Senior Vice President Date NUCLEAR REGULATORY COMMISSION By Its Date
)
.A l
EKHIBIT B
)
CURRENT ACCOUNT INSTRUCTIONS Pursuant to the terms of that certain Trush Agreement dated August 22, 1996 between General Atomics, as Grantor, and Sanwa Bank California, as Trustee, the Trustee is hereby instructed to j
deliver to General Atomics the sum of $
from the Current Account of the Trust Fund.
GENERAL ATOMICS By John E.
Jones Its Senior Vice President Date 1
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i
m Desionation of Authorized Officers
+
TO:
Sanwa Bank California DATE: 8/22/96 FROM:
General Atomics RE:
Trust Agreement dated August 22, 1996 between General Atomics as Grantor and Sanwa Bank California as Trustee 1
The following officers of General Atomics are designated and authorized to execute any and all documents relating to the Trust Fund and all accounts thereunder:
Name Title Srecimen Sianature John E.
Jones Senior Vice President f +vo r
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/
s' Max D.
Kemp Senior Vice President I
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A.
k James R.
Edwards Vice President, General i
Counsel and Secretary l
Anthony G. Navarra Treasurer
(
This designation and authorization shall remain in effect until withdrawn in writing.
GENERAL ATOMICS Y
Neal Blue Chairman
..)
.