ML20217H754

Forwards Proprietary New Parent Company Guarantee to Replace 920909 Guarantee,To Be Consistent W/Agreed Upon Alternative Method.Encl Withheld

ML20217H754
Person / Time
Site:	General Atomics, 07000734
Issue date:	04/28/1998
From:	Asmussen K GENERAL ATOMICS (FORMERLY GA TECHNOLOGIES, INC./GENER
To:	Alexander Adams, Gaskin C NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20013H703	List: ML20217H754
References
696-38-67-2903, NUDOCS 9804300054
Download: ML20217H754 (6)

Text

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h C:NERAL ATORNCE April 28,1998 696/38/67-2903 l

Via Express Delivery Service Document Control Desk j U.S. Nuclear Regulatory Commission Washington, D.C. 20555 ATTN: Mr. Alexander Adams,Jr.

Mr. Charles E. Gaskin

Subject:

Docket Nos. 50-89,50-163 and 70-734; License Nos. R-38, R-67 and SNM-696 Respectively: Submittal of Revised Parent Company Guarantee Re: Financial Assurance for Decommissioning

References:

1) Asmussen, Keith E., Letter No. 38/67-1884 to U.S. Nuclear Regulatory Commission ATTN: Mr. Marvin Mendonca, " Docket Nos. 50-89 and 50-163:

License Nos. R-38 and R-67; Decommissioning Report and Financial Assurance" dated July 26,1990

2) Asmussen, Keith E., Letter No. 696-1963 to Mr. John W. N. Hickey, U.S.

Nuclear Regulatory Corr. mission, " Docket No.70-734; License No. SNM-696; Submittal of Decommissioning Funding Plan," dated Sep'.2mber 10,1992

3) 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

4) 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.

70-0734,50-89,50-163," dated July 9,1996

5) Asmussen, Keith E., Letter No. 696/38/67-2892 to U.S. Nuclear Regulatory Commission ATTN: Mr Alexander Adams, Jr. and Mr Charles E. Gaskin,

,.,9 " Docket Nos. 50-89,50-163 and 70-734: License Nos. R-38, R-67 and SNM-UUGv 696 Respectively; Submittal of Revised Financial Documents (1997) Re:

Financial Assurance for Decommissioning," dated March 31,1998 Gentlemen:

General Atomics (GA) possesses two TRIGA research reactors under Nuclear Regulatory Commission (NRC) License Nos. R-38 and R-67 (both of which have been amended to withdraw authorization to operatet and conducts operations involving the possession of special nuclear material under NRC License No. SNM-696 (which has been amended to authorize possession I only). In compliance with 10 CFR Parts 50.33 and 70.25, GA previously submittec financial I l

assurance for the estimated cost of decommissioning its reactors and its ' M-696 licensed facilities (Refs.1 & 2). The financial assurance was provided by a pare; company guarantee

, based on the financial test contained in Appendix A of 10 CFR 30.

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Document Control Desk April 28,1998 696/38/67-2903 Page 2 Subsequently, for reasons detailed in Reference 3, GA was and is in non-compliance with the applicable NRC financial assurance regulations (10 CFR 50.75 and 70.25). As a consequence, GA proposed that an alternate method of compliance be approved by the NRC  !

(Ref. 3). After reviewing GA's proposal, consolidated financial statements, and other relevant information, the NRC approved GA's use of an alternative method of compliance (Ref. 4) f During the recent effort to pre;3are and submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule within 90 days of the close of the guarantor's fiscal year (Ref. 5), it was observed that to be consistent with the agreed upon alternative method, it is necessary to increase the amount of the 3arent company guarantee by about 5 %. Accordingly, to affect this increase, GA herewith su amits/ encloses a new parent company guarantee to replace, and not be in addition to, the guarantee dated September 9,1992 (Ref. 2).

As set forth in the enclosed atlidavit of Mr. Jones, GATC requests that this information be treated as proprietarfi nformation under the provisions of 10 CFR 2.790. GATC is a privately held corporation and the enclosure contains sensitive financial information.

If you should have any questions regarding this submittal, please do not hesitate to contact me at (619) 455-2823.

Very truly yours, Y $.

Keith E. Asmussen, Director Licensing, Safety and Nuclear Compliance

Enclosures:

Affidavit Certificate of Secretary of parent company Written consent of Directors of parent company Parent company guarantee cc: Mr. Ellis W. Merschoff, Administrator, NRC Region IV (w/o enclosures) j i

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' ' Document Control Desk April 28,1998 l 696/38/67-2903 Page 3 STATE OF CAllFORNIA )

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AFFIDAVIT OF JOHN E. JONES I, John E. Jones, Secretary and Treasurer of General Atomic Technologies Corporation, do hereby affirm and state:

1. I am an officer of General Atomic Technologies Corporation and I am authorized to execute this affidavit on behalf of General Atomic Technologies Corporation.

2. The affidavit is submitted under the provisions of 10 CFR 2.790 in order to withhold the enclosed financial information of General Atomic Technologies l Corporation from public disclosure or publication.

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3. The subject documents constitute confidential financial information of a j privately-held corporation which has been held in confidence by the owner and are customarily held in such confidence, and are not available in public sources. Public disclosure would create substantial harm to the owner by providing detailed financialinformation to its competitors and other parties whose interest may be adverse to the owner.

GENERAL ATOMICS TECHNOLOGIES CORPORATION

/I An 5 mM' ot{n' E'. Jon Secretary a Treasurer SUBSCRIBED AND SWORN to before me this 28th day of April 1998.

WITNESS my hand and official seal.

BRENDA B. DAW 5oN Commission #1071829 h

Notory PWlic - Confomic f /fc _ . g Son Dego County Notary Pubh,c My Comm. Expires sep 17,1999 )

CERTIFICATE OF THE SECRETARY OF ,

GENERAL ATOMIC TECHNOLOGIES CORPORATION The undersigned certifies that he is the Secretary of General A'Jomic Technologies Corporation, a corporation organized under the laws of the State of Wyoming ("GATC"), and that, as such, he is authorized to execute and deliver this certificate on behalf of GATC and further certifies as follows:

Attached hereto is a true, complete and correct copy of j the resolutions of the Board of Directors of GATC, adopted by the Board by unanimous written consent as of April 27., 1998. Such resolutions are in full force and effect on the date hereof in the form in which they were adopted and are the only resolutions of such Board regarding the transactions therein contemplated.

IN WITNESS WHEREOF the undersigned has executed this Certificate as of the 27 day of April, 1998.

i J E. J[ns, Secretary I

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GNNERAL AToti!C TECH 20MX3158 CORPORATION UMhWIMous WRZTTIot CONSENT OF DIRacTORS TO CORPORATE ACTION We, Neal Blue, David A. Goldberg and Jerry M. Jonen, are all members of and togrether monetitute the Board of' Direcharm of GaWERAL ATONIC TSCNNOLOGINN 00RPORATT00f, a Wyoming corporation, and by this writing approve the following resolution and consent to its adoption as of April _2,7,7 1999.

Amneaua1 af hm:== ham he " re has=== 4 ma 4 nm 4 nen RamoLvnD, That the paard hereby approves this corporation's guarantee to the U.S, Nuclear angulatory commisoton on behaa,f of this corporacion's isubsidiary, General Atenics, to provide financial aamurance for a total amount not to exceed

$4,096,000 for decommieminaing nativities for NRc License 880(-896 ae required by 10 CFR Part 70, and Licenses R-38 and R-67 mm required by in CPS Part 50, in the form of the attached letter.

This proceedings, consent le to be filed with the minutes et Board Neil blue a,,rL d /$ds/w David A. Goldberg[

W a urv u.t.p.n. y AA 1

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