ML20206D624

Forwards Projected Decommission Costs of Centrifuge Machines to Be Transferred to New Facility at Oliver Spring,Tn. Licensee Will Be Able to Offset Total Decommissioning Costs by Setting Aside Annual Decommissioning Cost Plus Reserve

ML20206D624
Person / Time
Site:	05000000, 05000603, 05000604
Issue date:	11/11/1988
From:	Smelser J ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
To:	Thompson H NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
NUDOCS 8811170173
Download: ML20206D624 (10)

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AllheERE, ERE.,  ;

AH Chemicalisotope Enrichment,Inc.

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Docket No. 50-603 50-604 y N/I41988)h nO2rm oxm e,m g ,

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November 11, 1988 L d4y G g' 9f l@~

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en4 ,q s U.S. Nunlear Regulatory Commission niry a t Documont Control Desk Offico Nuclear Material Safety & Safeguards WasPington, DC 20555 Attention: Mr. Hugh L. Thompson, Jr.

64-A NMSS Docket Materials '

I Wo have taken the most business like approach that we can gather  !

from scientists, technicians, and contrifuge exports in order to I calculate the decommission costs of the contrifugo machinos that will be transiirred from GCEP to the New Facility at Oliver ,

j Springs. Tennessee, t We approach this knowing that a certain number of machines will fail each year, and although our best estimates are that thoso a machines could last forty years, we have calculated their useful ,

life as being only twenty years in our projections.  ;

We made certain assumptions based on past experience, that the annual decommissioning costs coming out of our operating budget l

! will be $12,150 after an initial outlay (out of our operating

budget) of $56,250 for the first year of decommissioning and disposition due to equipment failure. Wo will also croato a sinking fund that will be activated by a deposit of $15,750 the first year of production and every year thoroafter for eight years. This fund will accumulato interest at a rate of 9% [

compounded annually. At the end of eight years, compound  !

intorest on reserves will be sufficient to counteract the  !

$12,150 per year decommissioning costs, thereby eliminating the i nood to continuo appropriating 315,750 por year into the sinking i fund. At the end of thirteen (13) years we will also be able to .

take the annualized decommissioning costs out of reserves or l sinking fund, thereby eliminating the need to not asido the j

$12,150 por year out of the operating budget. At the end of the -

twenty (20) year decommissioning period we will have more than f j sufficient funds in the sinking fund to cover the S315,000 total t t

8811170173 esitti PDR d  :

ADOCK 05000603 h ',

A PDC 24917 Pine Ridge Othee Park. Suite 202-B 702 phnois Ave. Ook Ridge. TN 37830 (615) 482-0029

U.S. Nuclear Regulatory Commission November 11, 1988 Page 2 decommissioning costs. By schting aside annual decommissioning costs of S12,150 plus a $15,750 reserve for the first eight (8) years we will more than be able to offset the total decommissioning costs.

Our technicians will be trained to operate the necessary machinery to decommission and dispose of the centrifuge rotors and attendant systems.

During the process of decommissioning and disposal of rotors, etc., there will be general equipment auch as piping, casings, wiring, and stands that can be sold to offset decommissioning and disposal costat however, we will not be using these revenues in our estimations.

, Any questions regarding the abova information may be directed to l the undersigned or Mr. Paul C. Scruggs, AlchemIE's Chief l l Operating Officer. '

Sincerely, LCH E, INC.

- M

r. John H. Smelser, Jr.

I Chief Executive Officer JHS/DCC/bc Enclosures

4 +

PROJECTED DECOMMISSION COSTS, RESERVES _AND COMPOUND INTEREST YEAR 1 YEAR 2 YEAR 3 Decommission Costs Paid Out of Operating Budget $56,250 $56,250 S68,400 Decommisalon Costs Per Year __12,150 _12,150 Total Decommission Costs $56,250 $68,4C7 $80,556 Reserves $15,750 $17,160 $34,463 Compound Interest on Reserves 1,418 1,545 3,102 Reserves Per Year 15,750 _15,750 Total Raserves $17,163 $34,463 $53,315 YEAR 4 YEAR 5 YEAR 6 Decommission Costs Paid Out of Operating Budget $80,550 $ 92,700 $104,d50 Decommission Costs Per Year 12,150 12,150 12,150 Total Decommission Costs $92,700 $104,850 S117,000 Reserves $53,315 $73,863 S 96,261 Compound Interest on Reserves 4,798 6,648 8,663 Reserves Per Year 15,750 15,750 _ 15,750 Total Reserves S73,863 s96,261 $120,674 YEAR 7 YEAR 8 YEAR 9 Decommission Costs ? aid Out of Operating Budget $117,000 G129,150 $141,300 Decommission Costa Per Year 12,150 12,150 12,150 Total Decommission Costs $119,150 dI41,300 $153,450 Reserves y $120,674 $147,285 S176,291 Compound Interest on Reserves 10,861 13,256 15,866 Reservee Per Year _ _

15,750 15,750 Total Reserves $147,285 $176,291 $192,157 YEAR 10 YEAR 11 YEAR 12 Decommission Costs Paid Out of Operating Budget $153,450 S165,600 $177,750 Decommission Costs Per Year 12,150 12 c150 12,150 Total Decommission Costs $165,600 $177,750 $189,900 g..............

During Year #8 Compound Interest on Reserves will be sufficient to generate enough income for the decommissioning costs of $12,150 per year without reserving $15,750 per year.

Reserves $192,157 $209,451 $226,302 Compound Interest on Reserves 17,294 18,551 20,547 Total Reserves __$209,451 5318,302 5_248,849 YEAR 13 YEAR 14 YEAR 15 I

Decommission Costs Paid Out of Operating Budget $189,000 $202,050 $214,200 l Decommission Costs Per Year 12,150 12,150 12,150 Total Decommission Costs $202,050 ,$214,200 $226,350  :

lteserves $248,849 $271,245 $295,657 Compound Interest 2 on Reserves 22,396 24,412 26,609 Total Reserves $271,246 $295,657 $322, 23~6 YEAR 16 YEAR 17 YEAR 18 Decommission Costa Paid Out of Operating Budgot 6.aa,350 $238,500 $250,650 Decommission Costs Per Year 12,150 12,350 12 150 Total Decommission Costs $238,505 $250,650 $262is55 Reserves $322,266 $351,270 $382,884 Compound Interest on Reservos 29,004 31,614 34,460 Total Reserves $351,270 $382,811 5417,3d4 l

YEAR 19 YEAR 20 YEAR 21 Decommission Costs Paid Out of Operating Budget $262,800 $274,950 $287,100 Decommission Costs Per Year 12,150 12,150 12,150 Total Decommission Costs $274,950 S287,100 $299,250 Reservas $417,344 S454,905 $495,846 Compound Interest on Reserves 37,561 _ 40,941 44,62_6 Total Reserves $454,905 $495,846 $540,472 I

YEAR 22 YEAR 23 ,

I i Decommission Costa Paid

! Out of Operating Budget $299,250 $311,400 Decommission Costs Per Year 12,150 _ 3,600 ,

Total Decommission Costs $311,400 $315,000  ;

l 7..............

I During Y e t.r #15 Total Reserves will exceed the $315,000 target by $7,266 thus completely serving the $315,000 decommissioning costs.

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AKhem;&

IE,Inc. .

Al Chomical botope EMehment. Inc.

INTEROFFICE MEMORANDUM DATE: Novombor 7, 1988 TO: John H. Smoiser FP.OM : Duddy Scruggo

SUBJECT:

D&D Costa John, for our long rango finane, planning, I asked our staff to compilo the noconsary data to be used by our accountant. Uesng past experience and all of the information wo havo on the operational failure of the contrifugo, the numbers we aro using may be Leo high.

However, this will allow us an extra margin for disposition coste. For example, wo are assuming wo will decommission all contrifuges at the end of twenty

• years. Our engincora toll us they could run forty years or longor. Wo will be training our peoplo in the propor disposition methods and thereforo, will always have capabio people available to decommission, stort, and got ready for disposition. This will be a cost offective way to solvo a portion of the wasto problom.

I will fill you in on this lator.

As wo discussed earlier, when we renlace a failed machino and compact the rotor, etc., we will have an abundance of storago spaco to hold this equipment until it is advantageous or economically feasible to commercially dispose of the wasto.

Again, wo fool that the only things we will bo passing back to DOE is classified documents and rotors that are classiflod and fail on initini operation. Everything 0100 will be stored end disposed of commercially.

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=Az AIChemE, hrc. -

All Chemical isotope Enrichment, Inc.

Novembor 7, 1988 Mr. Buddy Scruggs Chief Operating Officer AlchemIE, Inc.

702 S. Illinois Avenuo Suito 202-B Oak Ridge, TN 37830

SUBJECT:

A1ChomIE Plans and Costs for Decommissioning GCEP, CPDF, and Oliver Springs

Dear Duddy:

A1ChomIE has developed plans for decommissioning all its gas contrifugo related equipment obtained from the Department of Energy. Those plans are divided into three timo framon. They include the near term (about 3-2 years), the yearly activition over the next twenty years of planned oporation, and the final decor.missioning and cleanup of the facilition at the end of tho expected twenty year plant lifo. Those costs, including quantities of materials, aro summarized in Table 1.

In order to develop the decommissioning plans, A1ChomIE mado soveral assumptions that were used through out the twenty year program. The assumptions made wore the following:

1. All the contrifugos and rotors located at GCEP will be required by A1ChomIE for either the now plant and/or Poo fhdge Offico Park. Suite 202 B 702 thnoia Ave.. Ook 'hdge. TN 37830 (615) 482-0029

Mr. Buddy Scruggs November 7, 1988 -

Page 2 for CPDF. The utilization and distribution of the rotors and machines are depicted in Table 1. The initial facility requirements, the infant failures, and the failures anticipated over the life of the plant are shown. The assumption is that no decontamination will be required for the destroyed machines. Rather that the rotors and the internals will be compacted into e fifty-five gallon drum or 7.5 cubic foot vclume and stored. A1Cheu1E currently does not plan to separate isotopes of any RCRt. listed material at this time.

This eliminates the mix *d waste problem. Further only eight hundred and twenty ( 8:r.0 ) machines at GCEP have seen some UF6 However, our costs are based on the total of 1380 machines plus 138 spara rotors et GCEP.

2. It is anticipated that at the end of the twenty years of operation, or perhaps sometime prior, the gas centrifuge materials will be declassified. This action will obviously greatly simplify the decommissioning program sinco a olassified burial site will not be required, however the A1ChemIt! costa do not make this assumption.

3. All uranium bearing materials such as piping valves, centrifuges, etc., will be compacted, packaged and buried at a cost of Fifty (50) Dollars per cubic foot.

4. All the contaminated aluminum piping will be compacted to about Seventy five (75) percent of its theoretical density and prepared for burial at Fifty (50) Dollars per cutic foot. Most piping decontamination will be difficult and uneconomical. A1ChemIE will either use

O Mr. Duddy Scruggs ,

November 7, 1988 -

Pago 3 the 300 ton compactor at GCEP in the RA building or will use a commerical organization nuch as Chem-Nuclear Systems or Scientific Ecology, Inc., for compacting and/or cleaning contaminated items. Our costs assume all compaction.

5. The labor costs for removing the piping, contrifuges, etc., at GCEP are tot included in thoso costs.

6. During tho twonty yonr operating period of CPDF End Oliver Springs the f elled machinos will be removed and

, compacted and stored as part of A1ChemIE's normal operations.

7. At the end of the twenty year oparations, all ti.o contrifuges will be removed and compacted by the A1ChemIE staff over a portod of six months that span the twenty year event.

Respectfully submitted, ALCHEMIE, IllC.

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Sam Sonatore A8 SJS c Enclosuro

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, 11/2/88 SJs e.

n TABLE 1 ALCHEMIE DECOMMISSIONING QUANTITIkB AND COST

SUMMARY

TABLE l

l Compact Volwne Burial Costa 75% Theoretical 9 $50/ft L Cubic Feet Dollars ccEg PB1 Piping and Valves 375 8 18,720 Gas Test Stands 120 6.000 Hochanical Room 8.6 432 l CTTF 98 4,900 l

CPD(* 1,202 60,120 NEW PLANT

• 5,052 252,600 GAS CENTRIFUGES ist Year 1,125 56,250 Next 20 Years 243 12,150/yr End of 20 Years

• 6,300 315,000

• These figures are at the theoretical end of the life of the facility (20 years).

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L SJS 11/1/44 E i

i CPDF AND NEW PIAlff MACHINE REQUIRDIENTS AND DECCf9t!S$10NING COSTS Ntv FTANT MAe rue erCcee<r. reN j

First Yr Annual Rate 20 Tr End r l1380Machlaes l 1468 NET l 720 Initial Charge l {

l M Rotors (...........)l 72 !arant failure =l 72 21.6 720  ;

l1517.etCCtp l l lE Operr' 4ag loses l l l' 1 l l1224 Total l l l 1 1 I I i i 244l l l l 50 and l l 50 [

l Rotore l l I l \l/

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l..), 160 1.osses. l 16 7.2 0 l l Pecking, shipping, l I l l storage, etc. l l f I  :

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l l 12 !afant failures l 12 3.6 120 i..)l  ?) Operettag Loses l l 84 Stel l r i l 1 -

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Number Machis.e Totale 150 32.4 840 Total Cr.mps t Volume till ft 24? ft /yr 6300 ft' 12.28tft Total i i Cost 8 $$0/ft 8?6.250 812.150/yr $315.000 $117.050 Total j

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