ML20206Q820
| ML20206Q820 | |
| Person / Time | |
|---|---|
| Site: | Portsmouth Gaseous Diffusion Plant, Paducah Gaseous Diffusion Plant |
| Issue date: | 05/03/1999 |
| From: | Toelle S UNITED STATES ENRICHMENT CORP. (USEC) |
| To: | Pierson R NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM), NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| Shared Package | |
| ML20206Q764 | List: |
| References | |
| GDP-99-0079, GDP-99-79, NUDOCS 9905190233 | |
| Download: ML20206Q820 (8) | |
Text
F
- ('
e LSEC A Global Energy Company May 3,1999 GDP 99-0079 Mr. Robert C. Pierson Chief, Special Projects Branch Division of Fuel Cycle Safety and Safeguards, NMSS Attention: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Paducah Gaseous Diffusion Plant (PGDP)
Portsmouth Gaseous Diffusion Plant (PORTS)
Docket Nos. 70-7001 and 70-7002 Revised Payment Surety Bond
Dear Mr. Pierson:
The United States Enrichment Corporation (USEC) has negotiated an arrangement with one of the companies providing the original Payment Surety Bond (PSB) that was transmitted to the Nuclear Regulatory Commission (NRC) by Reference 1 to provide the total funding required by the current Decommissioning Funding Program. USEC has also initiated cancellation proceedings with the other company that had provided the original PSB. The Standby Trust Agreement is not affected by these changes.
The original of the new PSB is provided in Enclosure 1, and a copy of the cancellation notice is provided in Enclosure 2. Both io:ruments are effective July 28,1999.
Any questions related to this subject should be directed to Mark Lombard at (301) 564-3248. There are no new commitments contained in this submittal.
Sincerely, D
- 5. 9.
I Steven A. Toelle Nuclear Regulatory Assurance and Policy Manager 9905190233 990506
^
PDR ADOCK 07007001 C
PDR 6903 Rockledge Drive.13ethesda. MD 20817 1818 Telephone 301-564-3200 Fax 301564-3201 http://mv.usec.com O$ces in Livermore. CA Paducah, KY Portsmouth. OH Washington, DC
I l
1 4
Mr. Robert C. Pierson i
May 3,1999 GDP 99-0079, Page 2 REFERENCES l
- 1. Letter from Steven A. Toelle (USEC) to Robert C. Pierson (NRC), GDP 98-0151, dated July 27, 1998.
I I
)
l l
l
i.
.c-ti i
l l
I Enclosure i GDP 99-0079 Payment Surety Bond 1
l
g.
6 PAYMENT SURETY llOND Date bond executed:
March 3,1999 Effective Date:
July 28,1999 Principal:
United States Enrichment Corporation 6903 Rockledge Drise Bethesda. MD 20817 T> pe of organization:
Publicly-held Corporation NRC certificate of compliance number:
GDPI and GDP2 Name and address of facility:
Portsmouth Gaseous Diffusion Plant Paducah Gaseous Diffusion Plant Amounts for decommissioning activity guaranteed by this bond:
$55,500,000.00 Su retyt Safeco insurance Compan) of America 2 Iludson Place - 4"' Floor lloholen, NJ 07030 Type of Organization:
Corporation State ofIncorporation:
WA Safeco insurance Company of America is Treasury Listed in all 50 States of the United States of America.
Surety's Bond Number:
M Total Penal Sum of bond:
555,500,000.00 Know all persons by these presents, That w e, the Principal and Surety hereto, are firmly bound to the U.S.
Nuclear Regulatory Commission Iherein called NRCh in the above penal sum for the payment of which we bind ourseh es, our heirs, executors, administrators, successors, and assigns jointly and ses crally; pros ided that, where the Sureties are corporations acting as co-sureties, w e, the Surety, bind ourselves in such sum
" jointly and severally" only for the purpose of allowing ajoint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety; but if no limit ofliability is indicated, the limit ofliability shall be the full amount of the penal sum.
WHEREAS, the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter 1 of the Code of federal Regulations, Part 76, applicable to the Principal, w hich require that the holder of a certificate of compliance for a gaseous diffusion plant, or an applicant for a certificate of compliance for such a facility provide financial assurance that funds will be available w hen needed for those aspects of the ultimate disposal of waste and disposition of depleted uranium, decontamination and decommissioning of
(
e o
such a facility w hich are the 6nancial responsibility of such holder or applicant (collectively,
" decommissioning");
NOW, TilEREFORE, the conditions of the obligation are such that if the Principal shall faithfully, before the beginning of decommissioning of each facility identified abose, fund the standby trust fund in the amount (s) identified above for the facility:
Or, if the Principal shall fund the standby trust fund in such amount (s) after an order to begin facility decommissioning is issued by the NRC or a U.S. district court or other court of competent jurisdiction; Or, if the Principal shall provide alternate financial assurance and obtain the written approval of the NRC of such assurance;within 30 days after the date a notice of cancellation from the Sureties is received by both the Principal and the NRC, then this obligation shall be null and void; otherwise it is to remain in full force and effect.
l The Surety shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above. Upon notification by the NRC that the Principal has failed to perform as guaranteed by this bond, the Surety shall place funds in the amount guaranteed for the facilities into the standby trust fund established by the Principal with First Union National llank pursuant to the Standby Trust Agreement dated 7!28'98.
fhe liability of the Surety shall not be discharged by any pay ment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Sureties hereunder exceed the amount of said penal sum.
The Surety may cancel the bond by sending notice of cance'lation by certified mail to the Principal and to the NRC provided. howeser, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the Principal and the NRC, as esidenced by the return receipts.
The Principal may terminate this bond by sending written not:ce to the NRC and to Suretics 90 days prior to the proposed date of termination, provided, however, that no such notice shall become effective until the Sureties receise written authorization for termination of the bond from the NRC.
The Principal and Sureties hereby agree to adjust the penal sum of the bond yearly so that the amounts guaranteed hereby, plus the value of the government securities deposited in an external sinking fund by the Principal, are sufficient to meet the Principal's funding obligation with respect to decommissioning of the facility pursuant to the Decommissioning Funding Program established by the Principal; provided that the penal sum does not increase by more than 20 percent in any one year, and no decrease in the penal sum takes place without the w ritten permission of the NRC.
If any part of this agreement is invalid, it shall not affect the remaining provisions which will remain valid and enforceable, in Witness Whereof, the Principal and Surety have executed this financial guarantee bond and have affixed their seals on the date set forth above.
The persons w hose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety.
r 3
United States Enrichment Corporation
- -f '.. t. <
,a Principal:
N.,L u l ' v,1 -
V"
S.,ignature:
SathhA.VanLierde a
Tuasumr Name:
Title:
Corporate Seal:
Corporate Suretics Safeco insurance Company of America 2 Iludson Place,4* Place llaboken, NJ 07030 State of incorporation:
WA
!.iability 1.imit:
593,061.000 Signature:
Name and
Title:
Glenn Pelletiere, Attomey.in-Fact Corporate Seal:
flond Premium:
5170.533.00 4
1
(Acknowledgmsnt by principal, if an individual.)
STATE OF NEW YORK, ss:
C O U NTY O F.....................
(Notary's seal to be attached)
On this...................... day of....
................ 19......, before me personally
............to me known, who being by came..
described in and who executed the foregoing instrument, and he acknowledged that he executed the same.
Sworn before me this......
.... day of.......
..................19.....
(Acknowledgment by principal, if a partnership.)
STATE OF NEW YORK, ss:
COU NTY OF....... be.................
(Notary's seal to attached)
On this.........
... day of.........., personally appeared before me...
........... member of the iirm of.,.......
........to me known and known to me to be the individual described in and who executed the foregoing instrument and he acknowledged to me that he executed the same for and on behalf of said firm.
Sworn before me this,........
. day of..
.19.
(Acknowledgment by principal, if a corporation.)
STATE OF NEW YORK, ss:
CO U NTY O F....................,,.....
(Notary's seal to be attached)
On this........
.......d ay of............
....19....... before me personally came.....
.......to me known to be the person duly sworn, did depose and say, that he resides in....................
that he is the.......
...of the.
...the corporation described in and which executed the foregoing instrument; that he knew the seal of said corporation; that the seal affixed to said instrument was such corporate seal; that it was affixed by order of the Board of Directors of said corporation, and that he signed his name thereto by like order.
Sworn before me this..............,.. day of..
.19.
STATE OF NEW YORK, ss:
COUNTY OF... N,e w Y,q r k,,,,,,,,,,,,
On this.... 3 r.d.......... day of..Ma TAh.
..19 9.9..., before me, the undersigned, a Notary Public in and for said county, personally appeared. 9.lgnn.P.e.l.le, tier.e,
..........who is to me well known, who being duly sworn, did depose and say that he resides in...I)gtMR.f.99.n,t,y NA.....
.......that he is Attomey-in-Fact of Saf.ec.o..Insuranc.e..Cp.mp.any. 9f.. AmRri A..
............. a... FA.
corporation, the corporation described in and who executed the within instrument as surety. That he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was thereto affn:ed by
. order fo the Board of Directors of said corporation, and that he signed his name thereto by like order.
Subscribed and sworn to before me this..ST.d,
/*[9 day of,. Ma r.9 h..........................
.19 99...
g#
'g (Notary's seal to be attached)
(
kf'1 (
/.
Jud G77 (N Y. state) (6-88)
AFFloAVIT of PRINCIPAt. AND SURETY b
p rw.ew iat% &% et A P.TI: 3 ~.. O
f.'
i
.c '
J l
t l
l i
i 1
I
(
1 GDP 99-0079 Direct Cancellation Notice
{
L
1 LIBERTY MUTUAL INSURANCE COMPANY 600 WEST GERMANTOWN PIKE SUITE 300 PLYMOUTH MEETING, PA 19 462 Direct Cancellation Notice A pril 19,1999 Mr. Robert C. Pierson Chief, Special Projects Branch Disision of Fuel Cycle and Safety and Safeguards NMSS Attention: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Certified Mail: Z 437 439 870 RE:
Direct Cancellation Notice Bond NM Principal: U.S. Nuclear Regulatory Commission Bond Amount: $55.500.000 Ty pe: Pay ment Surety Bond l
Policy Period: 7/28/99-99
Dear Sirs:
l Your are hereby notified that the abose Bond Number Ms hereby canceled effective July 28, l
1999 l
Signed and sealed this 19th day of April,1999.
l l
Liberty Mutual Insurance Company
- f Tom Branigan Attorney-in-Fact ec:
Donald liatcher Mr. Vito Sancillio United States Enrichment Corporation /
Safeco lasurance Companies 6903 Rockledge Drive
/
2 Iludson Place Bethesda, MD 20817 Iloboken, N.J. 07030 David Pesce Liberty Mutual Insurance Company 1211 Avenue of the Americas New York, NY 10036 hkN" -
qw,,s
' THIS, POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND.
517181 e
This Powsr of Attornsy limits ths act of those namtd h3 rein, and they have no authority to bind the Company except in the minner and to the extent herein stated.
e I
LIBERTY MUTUAL INSURANCE COMPANY BOSTON, MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: That Liberty Mutual Insurance Company (the "Compar/), a Massachusetts mutual insurance company, pursuant to and by authority of the By-law and Authon2ation hereinatter set forth, does hereby name, constitute and appoint, BETTY CALDERON, VMAN CARTI, TOM BRANIGAN, GLENN J. PELLETIERE, BARBARA GUZZARDO, CYNTHIA SOMERSALL, ALL OF THE CITY OF NEW YORK, STATE OF NEW YORK.................
. each andmdually if there be more than one named, its true and lawful attomey-in-fact to make, execute, seal, acknowledge and dehver, for and on its behalf as surety and as its act and deed. any and all undertakings, bonds, recognizances and other surety obligations in the penal sum not exceed:ng FI FTY MMM"****"****""* * ****"***** ******* ""
_ DOLLARS ($50,000,000 "*"*"" ) each, and the execution of such bonds or
- s undertakings, in pursuance of these presents. shall be as binding upon the Company as if they had been duly signed by the president and attested by j
y the secretary of the Company in their own proper persons.
g a
m o
That this power is made and executed pursuant to and by authority of the following By law and Authonzation.
o CL C
y, ARTICLE XVI-Execution of Contracts: Section 5. Surety Bonds and Undertakings 3
M Any officer or other official of the company authorized for that purpose in writing Dy the chairman or the president. and subject to such j
g$
limitations as the chairman or the president may presenbe. shall appoint sui;h attomeys-in-fact, as may be necessary to act in behalf of tne CjE company to make. execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety C
gd obhgations. Such attorneys-in fact, subject to the hmitations set forth in their respective powers of attorney, shall have full power to Drnd the g
gy company by their signature and esecution of any such instruments and to attach thereto the seal of the Company When so executed such jo ICD instruments shall be as binding as it signed by the president and attested by the secretary.
p p.
Oe
>W gg By the following instrument the chairman or the president has author zed the off.cer or other official named therein to appoint attorneyson-fact gW h N Pursuant to Article XVI, Section 5 of the Byaaws. Assistant Secretary Gamet W. Elliott is hereby authonzed to appoint such attomeyson-fact Ek gU as may be necessary to act in behalf of the company to make. execute, seat, acknowledge and dehver as surety any and all undertakings.
O e
.I 3 bonds, recognizances and other surety obhgations.
4M 8 *2 TW
-1 That the By law and the Authonzation above set forth are true copies thereof and are now in full force and effect wt OI WC i,.
IN WITNESS WHEREOF, this instrument has been subscribed by its authorized officer and the corporate seal of the said Liberty Mutual Insurance RC C
Company has been affixed thereto in Plymouth Meeting Pennsylvania this 1st day of
.DBCember
.19 _98._
$E 0
O, k6 LIBERTY MUTUAL INSURANCE COMPANY
- c @
n By T' ~5 Gamet W Elhott, Assistant Secretary 3:: o O
a3 E.
=j~
g
, fj COMMONWEALTH OF PENNSYLVANIA ss COUNTY OF MONTGOMERY
,o C"
U>
"[E
=0 On this IST day of Decem.iber
, A D 19J8_. before me. a Notary Pubhe, personalty came the individua! known to c4 Ng me to be the therein desg. bed *cvf ual and officer of Liceny Mutual Insurance Company who executed the preceding instrurrent. and he acknowled-d gw god that he executed the same and,@ut the seal affixed to the said oreceding instrument is the corporate seal of said company. and that said corporate jQ z$
seal and his signatuse s@lsent;e'3 Gwreinas duly aff'xed and subscribed to the said instrument by authority and direction of the said company ogb
.=
-\\
Q y-IN TESTIMOtkW' EREOF, I heie6do. set my hand and attix my official seal at Plymou
- g. 9_
Meeting. PA tn ay and year first above wntten.
.H r
o,
_$ 0Hd Notary Pubhc l.N
,j 5 M
-b CERTIFICATE
. y.w,
I, the undersignelb As9stantJecretary of Liberty Mutual hsurance Company, do hereby cert?y that the ongina! power of attorney of which the foregoing is a full, true and cdr46 copy, is in full force and effect on the date of this certificate; and I do further certify that the offiewr who executed the said power of attorney was one of the officers specially authonzed by the charrman or the president to appoint any attorney-in-fact as provided in Artic!e XVL Section 5 of the By laws of Liberty Mutual Insurance Company This certificate may be signed by facsimile urder and by authonty of the following vote of the board of directors of Liberty Mutual insurance Company at a meeting duly called and held on the 12th day of March,1980 VOTED that the facsimile or mechanically repre" ed signature of any assistant secretary of the company wherever apDeanng upon a ce'M ed copy of any power of attorney issued D) 'ne company, shall be vahd and binding upon the company w:th the same force and e"ect n though manually affixed.
TgTIMONY WHEREOF, I have hereur ubscnbed my name and aff'med the corporate seal of the said company. this l?th _
day o' kN X(
sistantpetary 'N.R)
THIS POWER OF ATTORNEY MAY NOT BE USED TO EXECUTE ANY BOND WITH AN INCEPTl DATE AFTER December 1_ _. 20 00
Liberty Mutual Insurance Company p,
Statuttry Balance Sheet (d:llars in thousands) 6 Assets December -11. 199_7 Be.inds H.609 662 Crimmon & Prefert-1 Stocks _..-.
8 eai Estate.
4.4463 0 4
Cash & Short. Term Invetrnents -
I25.301 4
242.970 l
Other invested Assets...
271168 SubtetalCash and Inveled Assets.--
~~.
Iti.698JS4 l
Premium in Coune of Cc!!ection'.-. -
1.521.916 Reinsurance Recoverable on Loss and loss Adjustment Expense Payvnents 1&3330 Interet. Omdends and Real Estate Income Due and Accrued..
Other Aasets.
168.557
'"9 394 TOTAL ADMITTED ASSETS ~
19J52.1e 1 Llabilities and Surplus Reserve for Losses and I.oss Adjustment Expenses-.....
1ojo8.433 Reserve for Unearned Premiums..~...- -
1.629.132 Peinsurance Payable on Paid Loss and Loss Adjustment Expensea 36.194 FederalIncome Tax and State Prerruum Tax Accrued 9 t.774 Other Liabilities...
1.319365 TOTAL LIABILITIES
- ~. -. -
1Jls5 54e Unassigwd Surplus 4.124367
~ ~.
Guarenry Funds-1250 Surplus Note.
1.140316 TOTAL SURPLUS 6 066J33 TOTAL LIABILITIES AND SURFLUS 19.352.181
(' Excludes preruums more than 90 days due)
COMMONWEALTH OF MASSAC24USETT5 SS:
COUNTY OF SUFTOLK i
Dennis Langwell. beir g duty tworn. says: That he is Vice President and Cornptroller of Liberty MutualInsurance Cornpany; that said Company is a mutualinsurance cornpany duly organized. existing and engaged in busmeu as e surety by virtue of the laws of the Commonwealth of Massac.husetts and has duly complaed with all the requirenants of the laws of said Commonwealth and of the laws of the State of applicable to said Company and is duly qualified to act as surety under sue.h la ws; that said Company has also complied with and le duly qualified to act as survey on federal bonds undet Secoon 9305 of Title 31 of the Uruted States Code.
That the foregousg is a full true and correct statement of the financial condition of said Company an the 31st day December,1997.
Sworn to before me this 31st day of Marr.h.1998 9
i' 9
/
- v. w % sd i
oi.
Jy C,nm on E,. :s.
n, = ~
//u d m o/w
.vy,,,uen,anyme,,ou, S
)