ML20220A544
| ML20220A544 | |
| Person / Time | |
|---|---|
| Issue date: | 09/15/2020 |
| From: | Clay Johnson NRC/OCFO |
| To: | Hannah D Hannah Engineering |
| CYL | |
| References | |
| Download: ML20220A544 (3) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 September 15, 2020 Mr. Dewayne Hannah, P.E., P.S.
President Hannah Engineering P.O. Box 2058 Elkins, WV 26241
Dear Mr. Hannah:
On behalf of the U.S. Nuclear Regulatory Commission (NRC), I am responding to your letter, which was dated March 25, 2020 (Agencywide Documents Access and Management System Accession No. ML20198M377), and received on July 15, 2020. In the letter, you requested any assistance available on invoice No. LFB-20-2556, Docket No. 03038605, related to the fiscal year (FY) 2020 annual fee.
I note that the incoming request included NRC Form 526, Certification of Small Entity Status for the Purposes of Annual Fees Imposed Under 10 CFR Part 171, certifying Hannah Engineering as a small entity under section 1B-Small Business. In addition, a payment associated with invoice No. LFB-20-2556 of $900 has been received by the NRC. In light of your request and the submitted NRC Form 526, the staff reviewed whether your annual fees could be adjusted to the lower tier small entity fee under Title 10 of the Code of Federal Regulations (10 CFR) 171.16(c) based on NRC Form 526 section 1B.
Section 171.16(c) describes the NRC small entity size standards and fees. The criteria for the NRCs small entity size standards can be found in 10 CFR 2.810, NRC Size Standards. To qualify for the lower tier small entity fee under 10 CFR 171.16(c) based on NRC Form 526 section 1B, the business must be a for-profit concern not engaged in manufacturing with average gross receipts of less than $485,000 calculated over the last 3 completed fiscal years.
As explained in the instructions for NRC Form 526, gross annual receipts include all revenue received or accrued from any source, including receipts of the parent company and any affiliates, and account for both foreign and domestic locations. Receipts include all revenues from sales of products and services, interest, rent, fees, and commissions from whatever sources derived (i.e., not solely receipts from NRC-licensed activities).
In your letter, you indicate that due to the COVID-19 outbreak, your company temporarily closed, and employees were laid off. In addition, you assert that you are currently insolvent as your clients have also shut down, leaving your company without income to be able to pay your annual fee. Upon conducting a credit check using the company name and address on the NRC Form 526 that you submitted, I have determined that Hannah Engineerings average gross receipts would exceed $485,000 and thus you do not qualify under NRC Form 526 section 1B for the lower tier small entity fee.
However, I have determined that you would likely qualify as an upper tier small entity based on NRC Form 526 section 1A-Small Business, as it appears that your company has average gross
D. Hannah receipts between $485,000 to $7,000,000 over the last 3 completed fiscal years. If you wish to proceed with a request for small entity certification under NRC Form 526 section 1A, please submit a revised NRC Form 526 with payment of $3,600 to the NRC since the upper tier small entity fee based on NRC Form 526 section 1A is $4,500 for FY 2020 and the NRC has already received a payment of $900 from you.
If you are unable to pay the $3,600 with one payment, you may also arrange for a payment plan. As per 10 CFR 15.35(b), Payments, a debtor may arrange an installment plan with the NRC for payment of fees if the debtor is unable to pay the invoice in one lump sum. Please note that currently all installment agreements require the payment of interest at 1 percent annually and an administrative charge of $7.00 per period.
Lastly, we also considered whether the NRC can grant an exemption that would allow you to pay a reduced annual fee under the provisions in 10 CFR 171.11, Exemptions. However, based on the information provided in your letter, we have determined that you have not met the criteria for the NRC to grant an exemption under 10 CFR 171.11.
Please direct any questions regarding the settlement of invoice LFB 20-2556 to Ms. Carly Nelson-Wilson of my staff at (301) 415-3479. Please contact Ms. Kelly Riner of my staff at (301) 415-6246 for questions regarding NRC Form 526. Please contact Ms. Jo Jacobs of my staff at (301) 415-8388 for any fee-related questions.
Sincerely, Cherish K. Digitally signed by Cherish K. Johnson Johnson Date: 2020.09.15 15:49:57
-04'00' Cherish K. Johnson Chief Financial Officer
ML20220A491 (package); ML20198M377 (incoming);
ML20220A544 (Response letter) *via e-mail OFFICE OCFO/DOB/LFPT OCFO/DOB/LFPT OCFO/DOC/LAFBB OGC NAME JJacobs* WBlaney* JGibbs-Nicholson* MAlbert*
DATE 08/07/2020 08/07/2020 08/12/2020 08/28/2020 OFFICE OCFO/DOC/FSOB OCFO/DOC/LAFBB OCFO/DOB/LFPT OCFO/DOB NAME ELeGrand MBlair ARossi* RAllwein*
(JJones for)* (MLee for)*
DATE 08/18/2020 08/31/2020 08/31/2020 09/03/2020 OFFICE OCFO/DOB CFO NAME JEShay* CKJohnson DATE 09/14/2020 09/15/2020