ML20210J456
| ML20210J456 | |
| Person / Time | |
|---|---|
| Issue date: | 08/08/1996 |
| From: | Bykoski L, Cool D, Weber M NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| To: | |
| Shared Package | |
| ML20210J404 | List: |
| References | |
| PG-8-11-01, PG-8-11-1, NUDOCS 9708180097 | |
| Download: ML20210J456 (17) | |
Text
_ _ _ _ - _ _ _ _ _ _ _.
Policy-and Guidance Directive PG C.11 NMSS PROCEDURES FOR REVIEWING DECLARATIONS OF BANKRUPTCY Division of Waste Managenient ODice of Nuclear Matenal Safety and Safeguards n
fB4
)f,
- YI 3/9L J
IAuis M. Byk P
T yT.'J
,LLDP
, fg y 2 oTlff Michael F.
eber, Chief, LLDP 5te n H. bwis, OGC
- 2. u 16 APPROVED BY:
/,(//
CONCURREN
\\ '
(V
% 9. S %L
/,,.
Donald A. Caior, or, IMNS Margariliit V. Federline, Acting Director, DWM 9700100097 970008 Ogggge00'G PDR STPRG ESGGEN c
~ _ _. - _. _ -.. _ -. _ _ _ _
s NMSS PROCEDURES FOR REVIEWING DECLARATIONS OF BANKRUPTCY t
I Table of Contents EH1 1.
Pur>ose..........................................
I 2.
Bac(ground.......................................
1 3.
Procedures for Bankruptcy Actions.................
2 4.
Resources.........................................
6 - Procedures for Drawing-On Financial-Assurance Instruments
(
i r
I a
i 1
I i
t PG 8-11 i
8/8/96
~
~
NMSS PROCEDURES FOR REVIEWING DECLARATIONS OF BANKRUPTCY 1.
Puroose The purpose of this policy and guidanca directive is to provide procedures for addressing coordinated agency actions to deal with licensee bankruptcies.
2.
Backoround The final rule on bankruptcy filing notification requirements was published 5 the Federal Reaister on January 12, 1987. The Nuclear Regulatory Commission (NRC) amended its regulations:
10 CFR Sections 30.34(h)(1); 40.41(f)(1); 61.24(k)(1); 70.32(a)(9)(i); and 72.44(b)(6)(i) -- to require that a licensee immediately notify the appropriate NRC Regional Administrator following the filing of a voluntary or involuntary petition for bankruptcy by or against the licensee, an entity controlling the licensee, or an affiliate of the licensee.
The amended regulations are necessary because a licensee's troubled financial condition could affect its ability to control licensed radioactive material and the NRC must be notified
~
so that appropriate measures to protect the public health and safety can be taken.
There are different types of bankruptcies. The following discussion outlines the bankruptcy types NRC staff could be involved with:
Chapter 11 is generally used to reorganize a business and t
allows the debtor to continue its business operations by a plan of reorganization in hopes it can be returned to a viable state.
The debtor may enter Chapter 11 voluntarily or be forced to enter it involuntarily by creditors.
Chapter 7 is used primarily by individuals who wish to free themselves from debt simply and inexpensively and by businesses that wish to liquidate and terminate their businesses. As in Chapter 11, the debtor may enter Chapter 7 either voluntarily or involuntarily.
The creditors of a debtor, as well as the debtor, have the right under Chapter 11 to convert to a case under Chapter 7.
Generally, once a petition in bankruptcy is filed, the assets of the debtor can be expended or distributed only with the supervision of the bankruptcy court and in accordance with statutory requirements and priorities, in addition, the filing of a petition in bankruptcy triggers the Section 362(a) automatic stay provision of the United States Bankruptcy Code, which stays legal actions against the debtor or against the property of the bankruptcy ertate, except in certain limited circumstances that include public health, safety, and environmental obligations, igt Midlantic National Bank v. New Jersey Decartment of Environ nental Protection, 474 U.S. 494 (1986) and in re Chateauaay Corooration, 944 F.2d 997 (2nd Cir. 1991).
PG 8-1 1
8/8/96
Because of recent NRC licensee bankruptcies, there is a need to provide procedures for reviewing declarations of bankruptcies and to establish a Ban'~uptcy Response Team (BRT) to act on them, when they occur.
l The BRT would bring together the various NRC Offices in such an activity and would be composed of members of:
the relevant licensing office staff; the Office of the General Counsel (0GC); the Office of the Controller (OC); the Office of Enforcement (OE); the Olvision of Industrial and Medical Nuclear Safety (INNS); and the j
Division of Waste Management (DWM).
l 3.
Procedures for Bankruotev Actions a.
1.icensees are required under 10 CFR 30.34(h)(1), 40.41(f)(1),
61.24(k)(1), 70.32(a)(9)(i), and 72.44(b)(6)(1), to provide notification to the appropriate Regional Administrator, in writing, immediately after the filing of a voluntary or j
involuntary petition for bankruptcy by or against them.
The NRC staff may learn of a bankruptcy, however, by any means, including a letter from the licensee, a telephone call, or a newspaper report, if NRC Regional or Headquarters staff hears rumors, discovers information during an inspection, or comes across any information indicative of financial trouble, it should be reported to the immediate NRC management.
NRC licensing staff needs to contact licensee personnel to verify any bankruptcy information that is obtained, and to ensure that the required written notification is subtitted by the
- licensee, b.
After receiving a report that a licensee has filed for bankruptcy or that an involuntary petition has been filed against it, NRC licensing staff must verify that all licensed material possessed by the licensee is being adequately controlled.
The licensing staff should immediately contact the licensee and coordinate with inspection staff to verify the status of licensed material. A special inspection should be conducted if necessary.
Procedures for responding to inadequately controlled radioactive material are provided in Inspection Manual Chapter (IMC) 1301, " Radioactive Material incidents That Do Not Require Activation of the NRC Incident Response Plan," and IMC 1303, " Requesting Emergency Acceptance I
of Radioactive Material by the Department of Energy."
)
If there is an immediate threat to public health and safety, inspection staff can request emergency assistance from other Federal agencies in accordance with IMC-1301.
If a bankrupt licensee is controlling its licensed material, but the situation has a high potential to cause a significant health and safety ha:'ard in the future, requesting DOE emergency s
acceptance of the material, in accordance with Policy and Guidance Directive 9-12 may be an option.
This procedure is intended for discrete sources confined to a single location.
PG 8-1 2
8/8/96
However, the need for emergency acceptance of other materials will be evaluated on a case-by-case basis, c.
License reviewer and inspector timely reporting of bankruptcies to NRC management will ensure early and thorough attention by NMSS, regions, OC, and OGC staff to changes in licensee financial condition and corporate restructuring, before matters become exigent. The licensing project manager should, within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of receipt of a formal or informal bankruptcy notification, alert management, and make the following contacts to form a BRT for the case:
1.
License Fee and Accounts Receivable Branch, OC, to give it an opportunity to make appropriate filings for any fees due NRC and to coordinate with OGC and t.ie Department of Justice (D0J).
11.
Cognizant OGC staff, for legal assistance, iii.
The Low-level Waste and Decommissioning Projects Branch,
- DWH, for coordination of financial viability and decommissioning financial assurance issues, iv.
OE, to review any potential enforcement matters, v.
IMNS, for coordination of emergency response and generic materials licensee policy issues.
vi.
Regional
- staff, to coordinate regional inspection issues.
NRC management should assign an individual as lead for the bankruptcy action.
The BRT should develop a list of recipients to receive incoming information.
d.
The bankruptcy lead shou'1 promptly, by telephone or facsimile transmission, inform the licensee or the trustee, if one has been appointed, on learning of the bankruptcy filing, that bankruptcy will not relieve the licensee of its obligat%ns to comply with NRC requirements, including the license, and that inspections and other NRC regulatory actions are not terminated upon filing of the petition for bankruptcy.
The NRC shril notify the Bankruptcy Court that any Trustee or Receiver in bankruptcy retains the debtor licensee's legal obligations, including:
public
- health, safety, and environmental obligations; NRC regulations; and license conditions. Any owner of contaminated property transferred by the licensee before completion of decommissioning must comply with all applicable NRC requirements, including obtaining an NRC license and completing decommissioning.
Additionally, pursuant to Section 184 of the Atomic Energy Act, a
reorganized entity emerging from Chapter 11 is required to receive the approval of the NRC to its assumption of control over licensed activities.
PG 8-1 3
8/8/96
After this informal contact. NRC licensing staff, with the assistance of the OGC representative to the BRT, should:
1.
Provide the licensee, the bankruptcy court, any Trustee or Receiver in bankruptcy, or owner of property contaminated by licensee activities, with written notification of the licensee's obligations to control the site, to decontaminate and decommission, and to comply with applicable NRC requirements and the conditions of the license; 1
11.
If the licensee no longer exists as an entity, provide any Trustee, Receiver or owner of contaminated property transferred by the licensee, with written notification of their obligations to control tha
- site, to decontaminate and decommission, and to comply with applicable NRC requirements and the conditions of the i
- license, The OGC representative to the BRT should determine whether the e.
United States is represented in the bankruptcy proceeding and contact the Assistant United States Attorney or other D0J attorney assigned to the bankruptcy proceeding, or should take necessary ste)s to secure representation of the NRC's interests in t1e proceeding by D0J.
f.
The BRT should assess the current public health and safety situation at the licensee's facility and any impacts the bankruptcy could have on licensed operations.
This should include an in-house assessment of the extent of contamination and health risk posed by that contamination. This assessment would be based on the best information that is currently available.
A public health, safety, and contamination assessment should be performed to support NRC discussions with the Environmental Protection Agency (EPA) and the Department of Energy (DOE); to support any petition to the bankruptcy court for priority in disbursements of the bankruptcy estate; and to determine if prompt action is necessary to secure the site or to take any other action required under the AEA. Such an assessment could provide important information to DOJ in its representation of the NRC in bankruptcy proceedings, and so should also be made available to 00J.
Additionally, any steps to secure the site should be taken only after consultation with OGC, to ensure that NRC's rights to compel the debtor to satisfy its public health,
- safety, and environmental obligations, or to pursue any claim against the assets of the bankruptcy estate would not be unnecessarily l
prejudiced.
Unless health and safety require immediate l
action, the staff should first consult with EPA and the i
involved state (s), to ensure that all available resources and l
means of securing the site are considered.
l g.
The BRT should request OGC to obtain copies of all pertinent filings in the bankruptcy proceeding.
The lead individual should maintain copies of these filings.
The OGC PG 8-1 4
8/8/96
\\*
representative on the BRT should coordinate with the D0J to secure copies of all filings, by requesting that NRC be placed on the service list for the bankruptcy proceeding.
The licensee might, as a courtesy, provide some copies of filings, but has no obligation to do so, h.
The BRT should make recommendations as to whether additional information is to be demanded from the licensee, or if an order is appropriate, and provide a list of issues to be I
addressed.
The OGC and OE representatives to the BRT should help prepare any Demands for Information, Orders, Notices of l
Violation, or other enforcement actions regarding the licensee, the Trustee, or the Receiver in bankruptcy, i.
The lead individea, should contact the appropriate EPA Regional office and inform it of the bankruptcy.
The lead individual should provide EPA staff with the results of our preliminary hazard evaluation.
If the BRT considers that a
" removal" action may be appropriate, discuss with EPA staff whether a
" removal" action under the Comprehensive Environmental
- Response, Compensation and liability Act f
(CERCLA) should be pursued (this can be done promptly without first scoring the site for inclusion on the National Priorities List, if justified).
If EPA determines that the site does not warrant removal action, NRC may request EPA to conduct a CERCLA Preliminary Assessment and scoring of the site for potential remedial action under CERCLA. The request should be conveyed by letter to the appropriate EPA Region, with parallel communications to EPA Headquarters. Please note that such a request would have to be coordinated with the Commission. The BRT would need to provide the Commission with information, to include:
- 1) what criteria would apply; 2) what effect this action would have on citizen suits; and 3) what State role there is.
The OGC representative to the BRT should consult in all joint efforts with EPA and the States, to ensure decontaminat on and decommissioning of the site.
J.
The BRT should nake recommendations to decide if technical assistance contractor support is needed to analyze licensee financial information.
If contract support is needed, the bankruptcy lead individual should coordinate the support through the DWM representative to the BRT.
k.
The BRT should take all necessary steps to ensure that I
Suggestions of Interest or Proofs of Claim tre filed with the li Bankruptcy Court, for such matters as licensing fees or civil penalties that may be due the NRC, or for actions to maintain control of radioactive materials or to conduct site decommissioning. Regional enforcement staff should assist the OE representative to the BRT to determine whether any civil penalties are outstanding.
1.
The BRT should make recommendations on the need to draw on financial assurance instruments that may have been submitted by the licensee. Attachment A contains a detailed procedure PG 8-1 5
8/8/96
l..
\\l for drawing on financial assurance instruments.
The CWM l
representative to the BRT will assist the BRT by advising on the appropriate actions, information needs, and when and how to draw on the decomissioning financial assurance instrument.
Management Directive 8.12 "Decomissioning Financial Assurance Instrument Security Program,"
discusses the applicable procedures for safeguarding decomissioning financial assurance instruments and discusses the signature authority for drawing on the instruments.
m.
The BRT should also consider the need for the preparation of additional legal papers, to be filed on behalf of NRC, with the bankruptcy court, to preserve the rights of NRC to require the debtor to expend ava'ilable resources to decomission and to decontaminate the site. The OGC representative to the BRT should determine whether there are other NRC administrative proceedings or litigation pending or anticipated (i.e., civil penalties, fee collection) that may affect NRC staff actions in the bankruptcy proceeding.
4.
Resources Due to the infrequent number of licensee bankruptcies this procedure will not have significant resource implications on NHSS programs.
This procedure should reduce resource impacts by ensuring that bankruptcy cases are managed in a fully coordinated manner with OGC, OC, OE, and within NHSS divisions.
o PG 8-1 6
8/8/96
4
~.
ATTACHMENT 1 PROCEDURES FOR DRAWING ON FINANCIAL ASSURANCE INSTRUMENTS 3
LETTER OF CREDIT Before drawing on a letter of credit, the licensing office should contact the individual at the issuing bank who signed the letter of credit to determine the specific bank procedures needed to be followed to draw on the instrument.
In these discussions, thc l
following details should be resolved:
I where the transaction is to take place; 2 whether the transaction needs to take place in person; 3 what documents need to be presented (e.g., if the originals are needed);
- 4) if there are deadlines on when the instrument can be drawn-on;
- 5) if there are deadlines before which the instrument can not be drawn-on; and
- 6) the form of the sight draft (a bill of exchange or draft payable when presented).
In consultation with the licensing office, Office of the Controller (OC), and Division of Waste Management (DWM), the Office of the General Counsel (0GC) should prepare the sight draft and the sight draft certification with the exact wording referenced in the letter of credit and in accordance with other letter of credit conditions and bank instructions.
The letter of credit number needs to be referenced on the sight draft.
The Office Director, Deputy Office Director, Regional Administrator, or Deputy Regional Administrator should sign the sight draft and certify the sight draft certification. The certification should be notarized.
The appropriate individual should present the sight draft, sight draft certification, and other required documents at the bank in accordance with bank instructions.
As initial discussions are being held with the bank, OGC, OC, DWM, and licensing office staff should contact the trustee named in the standby trust agreement. The licensing office, OGC, 0C, and DWM, in e.onsultation with the trustee, should determine the method the trustee desires for transfer of the letter of credit funds.
Arrangements for direct transfer of the funds to the trustee account must be made so that the Nuclear Regulatory Commission (NRC) does not directly acquire funds.
NRC staff must not accept funds, even if instruments are made out to the trustee.
NRC staff must never allow the bank to make any instrument payable to NRC or the licensee.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, it must give NRC 30-days notice if it intends to withdraw funds from the standby trust. The G 8-11 A-1 8/8/96
/
9 Q,
,', 9,
's*!@a,c<ys, f
M' s+64"
- p /g~/
i)., s y
ss;y, o'on, **'g,y$'s', SIS),5, 5
I s
e:es ;,'
s
,s-
'*kk'!'!,*,,~,f",;s:6:s,~;3 k
_, s
s
,$s
{y,s.
(~*$S+$,. s,f'a,;;y's sys,T}f!'"5fS?$"*;h
"$$'$f,A",7*\\;ge,+:
., ss f
,gs,
!, g,4.\\s,s.:vp'2s[3'$\\,;c.
yifg s-s g
s s ;, w,g '",f p.
s g g' 5
g;%,$+$h;e!),1;<,s y
$ s; + n*s;,;esy+e,s's' ys+s s
s.
n
+g s
,s
[s
/ * '%,,
'"g k
,s
/o^$.pt,SS.,v3se
'y.
+,'s s
s s
e s'
"s's e s is^ 6 "3 4o,e,.g;;p.s;s's+Aes3,o'g%"s e %fS s p.
s s
s s
t"x
,:3,'*s /,lVg s%*^ t,,.sy\\,
o fe%e*s s
5 s
s,s
.,y,g,s
,,, S s ;s
?s,5,*e'g'sv,,, s::p s
s
's
.ps v4 s
s::p;;,,,q,,
s g
s9,
licensee also must complete, as specified in the stanoby trust agreement, the Certificate of Events and the Certificate of Resolution.
This includes a copy of NRC's approval of the decommissioning plan and approval to begin decommissioning.
If the licensee is capabla of directing the remediation, but does not have a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the standby trust, and must complete the Certificate of Resolution and a modified Certificate of Events.
This includes a copy of NRC's approval of the commencement of decommissioning and a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan.
NRC staff and the licensee should ensure that these modifications are am;, table to the trustee.
if the To disburse funds from the standby trust agreement i
licensee has defaulted or is unwilling or unable to direct the remediation -- licensing office staff, in consultation with OGC, OC, and DWM, will need to prepare instructions, in writing, and provide them to the trustee for disbursement of funds.
NRC will need to approve, in writing, all disbursements in excess of ten percent of the amount held in the standby trust.
The Office of Nuclear Material Safety and Safeguards (NHSS) Office Director, NMSS Deputy Office Director, the applicable licensing office Regional Administrator, or Deputy Regional Administrator must certify the disbursement approval documents, and ensure that the certifications are notarized, l
2.
SURETY BOND OGC, OC, DWH, and licensing office staff should review the conditions in the bond before contacting the surety company.
Licensing office staf f, in consultation with OGC, OC, and DWM, should prepare an Order to the licensee to fund the standby trust in the amount identified for the facility or to provide an alternative financial assurance instrument, and to prepare any other documents specified in the surety bond conditions.
If the licensee cannot meet these specified conditions in the surety bond, NRC staff should request that the licensee state such.
Licensing office staff, in consultation with OGC, OC, and DWM, should contact the surety bond company to determine what specific procedures need to be followed to draw on the instrument. Determine specific procedures for the following:
- 1) where the transaction is to take place;
- 2) whether the transaction needs to take place in person;
- 3) what documents need to be presented; and
- 4) what form of the notification by the NRC is desired; PG 8-11 A-2 8/8/96
OGC, OC, DWM, and licensing office staff should determine if the conditions for drawing on the bond have been met as stated in the surety bond.
If so, NRC licensing office staff, in consultation with OGC, 00, and DWM, should prepare a notification of default, with the applicable supporting documents.
The NMSS Office Director, NMSS Deputy Office Director, the applicable Regional Administrator, or Deputy Regional Administrator must certify the notification documents and have certification notarized. These documents and other required documents should then be presented to the surety bond company in accordance with surety bond company instructions.
As initial discussions are being held with the surety company, licensing office staff, in consultation with OGC, OC, and DWM, should contact the trustee named in the standby trust agreement. In consultation with the trustee, the licensing office. 0GC, 00, and DWM, determine the method the trustee desires for transfer of the l
i bond funds.
Arrangements for direct transfer of the funds to the trustee account must be made so that NRC does not directly acquire funds.
NRC staff must not accept funds, even if instruments are made out to the trustee.
NRC staff must never allow the bank to make any instrument payable to NRC or the licensee.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the standby trust, and must complete, as specified in the standby trust agreement, the Certificate of Events and the Certificate of Resolution.
This includes a copy of NRC's approval of the decomissioning plan and approval to begin decomissioning.
If the licensee is capable of directing the remediation, but does not have a decomissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the standby trust, and must complete the Certificate of Resolution and a modified Certificate of Events.
This includes a copy of NRC's approval of the commancement of decommissioning and a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan. NPC staff and the licensee should ensure that thase modifications are acceptable to the trustee.
To disburse funds from the standby trust agreement -- if the licensee has defaulted or is unwilling or unable to direct the remediation -- licensing office staff, in consultation with OGC, OC, and DWH, will need to prepare instructions, in writing, and provide them to the trustee for disbursement of funds.
NRC will need to approve, in writing, all disbursements in excess of ten percent of the amount held in the standby trust.
The HMSS Office Director, NHSS Deputy Office Director, the applicable licensing office Regional Administrator, or Deputy
'G 8-11 A-3 8/8/96
Regional Administrator must certify the disbursement approval documents, and ensure that the certifications are notarized.
3.
ESCROW AGREEMENT.
Licensing office staff should contact the escrow agent to determine what specific procedures need to be followed to draw on the instrument.
Determine specific procedures for the following:
i 1 where the transaction is to take place; i
2 whether the transaction needs to take place in person; I
3 what documents need to be presented; and i
- 4) what form of the notification by the NRC is desired.
OGC, OC, DWM, and the licensing office should determina that the conditions for drawing on the escrow agrecment have been met as stated in the escrow agreement.
In consultation with OGC, OC, and DWM, the licensing office should prepare the notification documents.
The NMSS Office Director, NMSS Deputy Office Director, and applicable Regional Administrator, or Deputy Regional Administrator must certify notification documents, and ensure that the certification is notarized.
Escrow agents normally assume fewer responsibilities than do trustees for standby trusts or trust agreements.
Licensing office staff should, therefore, make sure that in no case does the NRC staff accept funds disbursed by the escrow agent directly.to NRC.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the escrow, and must complete, as specified in the escrow agreement, the Certificate of Events and the Certificate of Resolution.
This includes a copy of NRC's approval of the decommissioning plan and approval to begin decommissioning.
If the licensee is capable of directing the remediation, but does not have a dncommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the escrow, and must complete the Certificate of Resolution and a modified Certificate of Events.
This includes a copy of NRC's approval of the commencement of decommissioning and a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan.
NRC staff and the licensee should ensure that these modifications are acceptable to the escrow agent.
To disburse funds from the escrow agreement -- if the licensee has defaulted or is unwilling or unable to direct the remediation --
licensing office staff, in consultation with OGC, 00, and DWM, will need to prepare instructions, in writing, and provide them to the escrow agent for disbursement of the funds.
PG 8-11 A-4 8/8/96
NRC will need to approve, in writing, all disbursements in excess of ten percent of the amount held in the escrow account.
The NHSS Office Di rector.,
NMSS Deputy Office Director, the applicable licensing office Regional Administrator, or Deputy Regional Administrator must certify the disbursement approval documents, and ensure that the certifications are notarized.
3.
TRUST AGREEMENT Licensing office staff, in consultation with OGC, OC, and DWH, should contact the trustee named in the trust agreement to determine what specific procedures need to be followed to draw on the l
instrument. Determine specific procedures for the-fcilowing:
- 1) where the transaction is to take place; l
- 2) whether the transaction needs to take place in person; l
- 3) what documents need to be presented; and
- 4) what the form of any additional documents, needed to be l
provided by the NRC, is dest ed.
3 OGC, 00, DWM, and licensing office staff should determine that the conditions for drawing on the trust agreement have been met as stated in the trust agreement.
In consultation with OGC, OC, and DWM, licensing office staff should prepare any documents needed by the trustee.
The NHSS Office Director, NMSS Deputy Office Director, the applicable P,egional Administrator, or Deputy Regional Administrator must certify the needed documents, and ensure that the certifications are notarized.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to Cthdraw funds from the trust, and must complete, as specified in the trust agreement, the Certificate of Events and the Certificate of Resolution.
This includes a co)y of NRC's approval of the decommissioning plan and approval to segin decommissioning.
If the licensee is capable of directing the remediation, but does not have a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the trust, and must complete the Certificate of Resolution ar.d a modified Certificate of Events.
This includes a copy of NRC's approval of the commencement of decommissioning and a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan.
NRC staff and the licensee should ensure that these modifications are acceptable to the trustee.
To disburse funds from the trust agreement -- if the licensee has defaulted or is unwilling or unable to direct the remediation --
licensing office staff, in consultation with OGC, OC, and DWM, will
'G 8-11 A-5 8/8/96
need to prepare instructions, in writing, and provide them to the trustee for disbursement of the funds.
NRC will need to approve, in writing, all disbursements in excess of ten percent of the amount held in the trust account.
The NMSS Office Director, NHSS Deputy Office Director, the applicable licensing office Regional Administrator, or Deputy Regional Administrator must certify the disbursement approva.1 documents, and ensure that the certifications are notarized.
5.
CERTIFICATES OF DEPOSIT, GOVERNMENT FUNDS, DEPOSITS OF SECURITIES lian ing cffice staff, in consultation with OGC, OC, and DWM, should contact the bank or fund agent to clarify the hoMings in the account and determine what specific procedures need to be followed to draw on the instrument.
Determine specific procedures for the following:
- 1) where the transaction is to take place;
- 2) whether the transaction needs to take place in person;
- 3) what documents need to be presented (e.g., whether the original instruments need to be presented);
- 4) what form of any endorsement documents is desired; and
- 5) what special procedures for converting the securities to cash are desired.
In consultation with OGC, 00, and DWM, the licensing office staff should prepare the documents needed in accordance with the instrument conditions and bank or fund agent instructions.
The NMSS Office Director, NMSS Deputy Office Director, the applicable Regional Administrator, or Deputy Regional Administrator must certify the endorsement documents and ensure that the certifications are notarized. Appropriate NRC staff should present the endorsement documents and other required documents at the bank or to the fund agent, in accordance with bank or fund agent instructions.
Funds from CDs, government funds, and securities can be transferred to either a standby trust or an escrow account for disbursement. As initial discussions are being held with the surety company, licensing office staff, together with OGC, OC, and DWH staff, should contact the trustee named in the standby trust agreement or escrow agent named in the escrow agreement.
In consultation with the trustee or escrow agent, the licensing office, OGC, OC, and DWM, should determine the method the trustee or escrow agent desires for transfer of the securities. Arrangements for direct transfer of the funds to the trustee or escrow account must be made so that NRC does not directly acquire funds. NRC staff must not accept funds, even if instruments are made out to the trustee or escrow agent.
NRC staff must never allow the CD or security assets to be made payable to NRC or to the licensee.
Escrow agents normally assume fewer responsibilities than do trustees for standby trusts or trust agreements.
Licensing office staff should, therefore, make sure PG 8-11 A-6 8/8/96
(
that in no case does NRC staff accept funds disbursed by the escrow agent directly to NRC.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the standby trust or escrow, and must complete, as specified in the standby trust or i
escrow agreement, the Certificate of Events and the Certificate of
\\
Resolution.
This includes a copy of NRC's approval of the decommissioning plan and approval to begin decommissioning.
If the licensee is capable of directing the remediation, but does not have a decomissioning plan approved by NRC, the licensee must
]
give NRC 30-days notice if it intends to withdraw funds from the standby trust or escrow account, and must complete the Certificate l
of Resolution and a modified Certificate of Events.
This includes i
a copy of NRC's approval of the commencement of decommissioning and l
a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan.
NRC staff and the licensee should ensure that these modifications are acceptable to the trustee or escrow agent.
j To disburse funds from the standby trust or escrow agreement -- 11 the licensee has defaulted or is unwilling or unable to direct the remediation -- licensing office staff, in consultation with OGC, OC, and DWM, will need to prepare instructions, in writing, and provide them to the trustee or escrow agent for disbursement of funds.
NRC will need to approve, in writing, all disbursements in excess of ten percent of the ' amount held in the standby trust or escrow account.
The NHSS Office Director, NMSS Deputy Office Director, the applicable licensing office Regional Administrator, or Deputy Regional Administrator must certify the disbursement approval documents and ensure that the c;rtifications are notarized.
6.
PARENT COMPANY GUARANTEE After consultation with OGC, 00, and DWM, licensing office staff should contact the parent company to notify it that the licensee has defaulted or is unwilling or unable to complete decommissioning.
The licensing office staff, in consultation with OGC, OC, and DWM, and the parent company should determine any specific procedures the parent company needs for requesting funding.
In consultation with OGC, 00, and DWM, the licensing office should prepare a document formally notifying the parent company that the licensee has defaulted or is unwilling or unable to complete decommissioning.
The NMSS Office Director, NMSS Deputy Office Director, the applicable Regional Administrator, or Deputy Regional Administrator must certify the letter and ensure that the certification is notarized.
PG 8-11 A-7 8/8/96
A parent guarantee mechanism can be used with or without a standby trust agreement.
If a standby trust agreement is not used, the licensing of fice staff, h consultation with OGC, OC, and DWM, should prepare instructions to the parent company as needed to decommission the licensee's facilities.
The NMSS Office Director.
NHSS Deputy Of fice Director, the applicable Regional Administrator, or Deputy Regional Administrator must certi fy the instruction letter, and ensure that the certification is notarized.
If a standby trust agreement is used, as initial discussions are being held with the parent company, licensing office staff, together with OGC, OC, and DWM staff, should contact the trustee named in the standby trust agreement.
In consultation with the trustee, the licensing office, OGC, 00, and DWM should determine the method the trustee desires for transfer of the parent company f;;id s.
l Arrangements for direct transfer of the funds to the trust account must be made so that 40 does not directly acquire funds. NRC staff l
must not accept funds, even if instruments are made out to the trustee. NRC staff must never allow the parent company to make any l
Instrument payable to NRC or the licensee.
If the licensee is capable of directing the remediation, and has a decommissioning plan approved by NRC, the licensee must give NRC 30-days notice if it intends to withdraw funds from the standby trust, and must complete, as specified in the standby trust agreement, the Certificate of Events and the Certificate of Resolution.
This includes a copy of NRC's approval of the decommissioning plan and approval to begin decommissioning.
If the licensee is capable of directing the remediation.. but does not have a decomraissioning plan approved by NRC, the licensae must give NRC 30-days notice if it intends to withdraw funds from. the standby trust, and must complete the Certificate of Resolution and a modified Certificate of Events.
This includes a copy of NRC's approval of the commencement of decommissioning and a statement concerning the terms and conditions of NRC's approval of the continuing development of the decommissioning plan.
NRC staff and the licensee should ensure that these modifications are acceptable to the trustee.
To disburse funds from the standby trust -- if the licensee has defaulted or is unwilling or unable to direct the remediation --
licensing office staff, in consultation with OGC, 0C, and DWM, will need to prepare instructions, in writing, and provide them to the trustee for disbursement of funds.
NRC will need to approve, in writing, all disbursements in excess of ten percent of the amount held in the standby trust.
The NMSS Office Director, NMSS Deputy Office Director, the applicable licensing o f.'i ce Regional Administrator, or Deputy Regional Administrator must certi fy the disbursement approval documents, and ensure that the certifications are notarized.
PG 8-11 A-8 8/8/96
SELF-GUARANTEE in consultation with OGC, OC, OE, and DWM, the licensing office should prepare an order formally notifying the licensee that, under the self-guarantee, the licensee is required to fund the decommissioning of any contaminated facilities.
i l
PG 8-11 A-9 8/8/96
....