ML20245A645

Requests Extension of Latest Completion Date from 890503 to 891103,to Allow Time for Negotiations,Mods & Settlement of Financial Issues W/Doe

ML20245A645
Person / Time
Site:	05000603
Issue date:	04/18/1989
From:	Irving S ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
To:	Bernero R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
25435, NUDOCS 8904250314
Download: ML20245A645 (3)

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                                                                                                       %( 9                                          j U.S. Nuclear Regulatory Commission Mr. Robert M. Bernero, Director Office of Nuclear Material Safety and Safeguards Washington, DC 20555 Re:           All Chemical Isotope Enrichment, Inc. (A1ChemIE) Docket No. 50-603 A1ChemIE Facility 1-CFDF Construction Permit No. GCEP-1

Dear Mr. Bernero:

Paragraph III (1), of the referenced Construction Permit contemplates a latest date for completion of May 3, 1989. Due to circumstances beyond the control of A1ChemIE, it appears that we will be unable to complete modification activities by this date, and accordingly by this lettor and in accordance with 10CFR50.55(b), A1ChemIE hereby requests an extension of our latest completion date from May 3, 1989 to November 3, 1989. 7 In support of this request, A1 Chem).E would show that Facility 1-CPDF is owned by the Department of Energy, and A1ChemIE is pursuing a leasehold interest in same. It had been anticipated by both A1ChemIE and DOE that lease negotiations and requisite actions thereunder would be completed by February 29, 1989, sufficiently in advance of May 3 to allow completion of modification of CPDF for A1ChemII: purposes by May 3, 1989. Complications have arisen, however, with the amount an' ethod of financial assurances which A3ChemIE must post for the Department of Energy pursuant to contractual agreements between A1ChemIE and DOE. The grocess of resolutina of these issues, specifically the amount and type of said t, , has been lengthy, and requires basically a lino item study of equipment, which A1ChemIE la obtaining pursuant to itu contract with DOE. The resolution of this issue involves a third party contractor doing an in depth study on items of equi:;m ent owned by A1 Chem 1E, in order to reach an amount which is f air and mutually agreeable to each party. This process is ongoing, and each party has been making efforts on this issuo for the past several months. 8904250314 ADOCK890418 05000603, pf PDR PDC p l Pine Ridge Office Park, Suite 202-B 702 tilinois Ave.. Cok Mdge. TN 37830 (615) 482-0029 25435

- d[ciemie-TEL No.6154825709 Apr 18.89 11:52 No.003 P.03

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• U.S. Nuclear Regulatory Commission April 18, 1989 Page 2 ,

A1ChemIE is unable to force this issue with DOE, as the lessor (DOE) has the right to approve and control such issues. A1ChemIE's mission is one of compliance, and we are providing technical input to DOE as we inquire into this matter; solving this issue is basically a condition precedent to occupancy of CPDF. Reaching a correct and fair resolution on this issue is certainly a key issue to each party, and it has a bearing on the benefits to the American taxpayer from this technology transfer between AlchemIE and DOE. - m AlchemIE continues to try^to achieve a resq1utr,tg,nyon this issue in order to do necessary faciilitf~s:Ril3 Rat *16ns sb that we can begin our stable is otope__ production._ac_t1&it198 0 in the CPDF. Final decision in this area, however, res.t inevitably w1th the DOE. 103 3 TIC WM mm Ac c o rd in g1', , A1ChsmIE respectfully requestr- extension of our construction permit from May_3,.1989;.to Nov_emb_oq 3, 1989. This extension period should allow time _fpr negotiations and inquiry between A1ChemIE and DOE to J conb'lude; necessary facility modifications can then be accomp"lished W. thin this extended latest date of completion. ~~ ~ "' We appre61ste your attention 't6 ttN nattsr' 'ind' feel that it is in the best interest of the situation. Should you need any additional information f rom A1ChemIE, please do not hesitate to contact me and we will immediately transmit it to you. Respectfully submitted, ALCHEjIE, I 'C. 3 gaw - S ephe A. Irving General Counsel I

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DOCKET NO. 50403 CONTROL No. 25435 DATE OF D00. l (I (R NS9 DATE RCVD. fiI b 198h FCUF PDR FCAF LPDR / l & E REF. / SAFEGUARDS

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