ML20246F187

Summary of 890803 Meeting W/Util in Rockville,Md Re Preliminary Decommissioning Plan of 890630 for Plant.Related Info,Including List of Attendees & Util Info Re Use of Tax Deduction in Calculation of Funding Requirements Encl

ML20246F187
Person / Time
Site:	Fort Saint Vrain
Issue date:	08/24/1989
From:	Erickson P Office of Nuclear Reactor Regulation
To:	Weiss S Office of Nuclear Reactor Regulation
References
NUDOCS 8908300191
Download: ML20246F187 (5)

Text

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• UNITED STATES Q Lg NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555

-Q  !. j 1 j August 24', 1989 iMEMORAND'UMFOR

. Seymour H' . Weiss, Director :

, Non-Power Reactor, Decommissioning and Environmental Project Directorate

. Division of Reactor Projects.- III, IV, V and.Special Projects

'FROM: Peter B. Erickson, Project Manager Non-Power Reactor, Decommissioning and Environmental Project Directorate Division of Reactor Projects - III, IV, V and Special Projects

SUMMARY

-0F MEETING WITH PUBLIC SERVICE COMPANY-0F COLORADO (PSC) TO DISCUSS PRELIMINARY DECOMMISSIONING PLAN OF JUNE 30, 1989

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This meeting was held on August 3,'1989 in Rockville, Maryland at the request of PSC to discuss the Preliminary Decommissioning Plan for Fort St. Vrhin.

The attendees at this meeting are listed in Enclosure 1. The following issues-were discussed:

1) The use of future tax' deductions as part of the funding plan for

decommissioning;

' 2) The time to be allowed to collect funds for decommissioning, including the need for an exemption from 10 CFR 50.82(c)(1) requirements;

3) The need to specify criteria used for release of the facility to unrestricted access and,

4) The specific requirements of the new decommissioning rule that prohibits conversion of a Part 50 Possession-only license to another type of license.

TAX DEDUCTIONS Internal funding of decommissioning is not permitted by decommissioning i regulations. ~PSC however has proposed to use future tax deductions as part of l their decommissioning funding plan on the basis that these deductions are not L internal funding. Enclosure 2 was provided by PSC to support that position.

L The NRC staff is concerned that these tax deductions are a forni of internal L- funding but will discuss their position in their comments on the proposed Preliminary Decommissioning Plan.

EXEMPTION FROM 10 CFR 50.82(c)(1) REQUIREMENTS PSC proposes to set aside decommissioning funds in an external account during the SAFSTOR period. This proposal would require an exemption from 10 CFR 50.82(c)(1) which requires that the total funds required for decommissioning 8908300191 890824 PD.s ADOCK 05000267 pfpf P ppc g[g

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. 5, s ) 1 i Seymour H.: Weiss -2 August 24, 1989 be set aside at the start of the SAFSTOR period. PSC will submit an exemption

request. relating to this decommissioning funding schedule. NRC staff members expressed

reluctance to consider a' delay beyond 2008 for collection of these

. funds. .The year 2008' is the present license expiration date.

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- CRITERIA FOR RELEASE OF A FACILITY TO UNRESTRICTED ACCESS Section.5 of the Preliminary Decommissioning Plan correctly states that Regulatory Guide 1.86 lists surface contamination criteria that the NRC finds acceptable for release to unrestricted access and that this guidance does not address material made radioactive due to neutron irradiation.

. .As stated by NRC staff members present, the. cost of final facility DECON is

- directly related to the criteria for release to unrestricted access and that these criteria must be stated in the Preliminary Decommissioning Plan for the cost analysis to be valid. Furthermore, the NRC has criteria for neutron activated material that<has consistently (since 1981) been provided to reactor licensees involved in decommissioning; that criteria is stated in Enclosure 3.

We recommend that PSC base their decommissioning cost analysis on that criteria.

. CONVERSION OF PART'50 POSSESSION-0NLY LICENSE PSC' discussed the possibility of conversion of a 10 CFR Part 50 Possession-Only license to another type of license after the fuel had been removed from the

1. site. The NRC staff, including the OGC representative present, pointed out l 'that the new' decommissioning rule prohibits such transfer in that it prohibits termination of the.10 CFR Part 50. license until "the terminal radiation survey and associated documentation demonstrates that the facility and site are suitable for release for unrestricted use".

The NRC staff has scheduled their first comments and questions on the Preliminary Decommissioning Plan for September 15, 1989.

/s/

Peter B. Erickson, Project Manager Non-Power Reactor, Decommissioning and Environmental Project Directorate Division of Reactor Projects - III, IV, Y and Special Projects

Enclosures:

As stated g th l I

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DISTRIBUTION NRC PDR tocal PDR J. Sniezek PDNPRDE Reading S. Weiss P. Erickson 0GC-Rockville E.. Jordan B. Grimes E. Tomlinson R. Wood ACRS (10) >

DOCUMENT NAME: FSV 8985

• SEE PREVIOUS CONCURRENCES:

PDNPRDE/PM* PTSB*

Q PDNP D PDNPRDE/PM*

PErickson:sr KHeitner RWood SWeiss l 08/22/89 08/22/89 08/22/89 084f/89

3 Seymour H. Weiss be set aside at the start of the SAFSTOR period. PSC will submit an exemption request relating to this decommissioning funding schedule. NRC staff members expressed reluctance to consider a delay beyond 2008 for collection of these funds. The year 2008 is the present license expiration date.

CRITERIA FOR RELEASE OF A FACILITY TO UNRESTRICTED ACCESS Section 5 of the Preliminary Decommissioning Plan correctly states that Regulatory Guide 1.86 lists surface contamination criteria that the NRC finds acceptable for release to unrestricted access and that this guidance does not address material made radioactive due to neutron irradiation.

As stated by NRC staff members present, the cost of final facility DECON is directly related to the criteria for release to unrestricted access and that these criteria must be stated in the Preliminary Decommissioning Plan for the cost analysis to be valid. Furthermore, the NRC has criteria for neutron activated material that has consistently (since 1981) been provided to reactor licensees involved in decommissioning; that criteria is stated in Enclosure 3.

We recommend that PSC base their decommissioning cost analysis on that criteria.

CONVERSION OF PART 50 POSSESSION-0NLY LICENSE PSC discussed the possibility of conversion of a 10 CFR Part 50 Possession-Only license to another type of license after the fuel had been removed from the site. The NRC staff, including the OGC representative present, pointed out that the new decommissioning rule prohibits such transfer in that it prohibits termination of the 10 CFR Part 50 license until "the terminal radiation survey and associated documentation den anstrates that the facility and site are suitable for release for unrestricted use".

The NRC staff has scheduled their first comments and questions on the Preliminary Decommissioning Plan for September 15, 1989.

4 b.

Peter B. Erickson, Project Manager Non-Power Reactor, Decommissioning and Environmental Project Directorate Division of Reactor Projects - III, IV, V and Special Projects

Enclosures:

As stated

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l 4 Enclosure 1 i I ,

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' Meeting with Public Service Company of Colorado l I

on Fort St. Vrain August 3, 1989 l Attendees Name Organization Clayton L. Pittigilo LL/NMSS Dan E. Martin LL/NMSS Frank Cardile LL/NMSS Louis Bykoski LL/NMSS Edward B. Tomlinson NRR/PDIV Stu Long ACRS S. H.-Weiss. NRR/NPRDEPD Jeffry M. Sharkey OEDO Peter B. Erickson NRR/NPRDEPD Ken L. K. Weaver Colo. Department of Health Bob Wood NRR/PTSB BCP&R*

J. B. Knotts BCP&R*

Bill Horin ERCE**

Adela M. Bolet PSC l Don Warembourg' Charles Bomberger PSC-Salie O'Malley KSR0 for PSC OSC Mary - Fisher .

PSC

. Frances Erickson PSC M. H. Holmes LL/NMSS Tim Johnson OGC Jane Mapes

• Bishop, Cook, Purcell and Reynolds

• • Environmental and' Energy Services Company u

Enclosure 2 USE OF TAX DEDUCTION IN CALCULATION OF FUNDING REQUIREMENTS

-PSC'S FUNDING PLAN MAKES USE OF A SINKING FUND TO ACCUMULATE THE NECESSARY DOLLARS TO COVER THE AFTER-TAX CASH EXPENDITURES OF DECOMMISSIONING.

-TAX DEDUCTIONS FOR DECOMMISSIONING EXPENDITURES WILL PROVIDE PSC WITH INCREASED CASH FLOW AT THE TIME OF EACH EXPENDITURE TO PAY THOSE DECOMMISSIONING EXPENDITURES.

-INTERNAL FUNDING CONTEMPLATES THE INVESTMDIT OF FUNDS DIRECTLY INTO THE ASSETS OF THE COMPANY TO BE REINVESTED OVER TIME AND USED AS COLLATERAL TO PROVIDE FUNDS FOR DECOMMISSIONING IN THE FUTURE. TAX DEDUCTIONS DIFFER FROM INTERNAL FUNDING IN THAT DEDUCTIONS ARE THE DIRECT RESULT OF THE ACTUAL CASH EXPENDITURES MADE IN THE SPECIFIC YEAR OF EXPENDITURE. THEREFORE THE TIMING OF THE DECOMMISSIONING EXPENDITURE COINCIDES WITH THE TAKING OF THE TAX DEDUCTION FOR THAT EXPENDITURE. THE REMAINING PORTION OF THE DECOMMISSIONING EXPENDITURE IS WITHDRAWN FROM THE EXTERNAL FUND.

-FAILURE TO RECOGNIZE THE BENEFIT OF TAX DEDUCTIONS IN THE CALCULATION OF PAYMDITS TO THE FUND IS OVERLY CONSERVATIVE AND WILL RESULT IN OVERFUNDING. ADDITIONALLY, IF THE CASH AVAILABLE FROM TAX DEDUCTIONS IS IGNORED, WITHDRAWALS FROM THE FUND WILL BE IN EXCESS OF THE ACTUAL FUNDS NEEDED BY THE COMPANY.

-RECOGNITION OF THE CASH BENEFIT OF TAX DEDUCTIONS IN CASH FLOW STUDIES IS STANDARD FINANCIAL PRACTICE.

-ADJUSTMENTS TO FUND CONT"!BUTIONS TO ACCOMODATE CHANGES IN TAX RATE OR TAX BENEFITS WILL BE MADE JUST AS FOR CHANGES IN INTEREST RATE ESTIMATES, TECHNICAL PLAN, EXPENDITURE TIMING, ETC.

-OVER THE LAST TWENTY YEARS, PSC HAS HAD SUFFICIENT TAXABLE ,

INCOME WITH WHICH TO OFFSET OPERATING EXPENSES AS TAX DEDUCTIONS AND BELIEVES IT IS SECURE IN APPLYING PAST EXPERIDiCE TO THE FUTURE. ADDITIONALLY, THE APPLICATION OF INFLATION ESCALATORS TO DECOMMISSIONING EXPENDITURES IN THE FUTURE MAY ALSO BE TAKEN INTO ACCOUNT IN ESTIMATING FUTURE NET INCOME.

THEREFORE, JUST AS SUFFICIENT NET INCOME IS AVAILABLE TO OFFSET TAX DEDUCTIONS TODAY, IT FOLLOWS THAT SUFFICIENT NET INCOME WILL BE AVAILABLE IN THE FUTURE.

-SPECIFICALLY FROM PSC'S PERSPECTIVE, FUND CONTRIBUTIONS (CURRENTLY AT $1.~/68 MILLION/ YEAR) DO NOT APPEAR TO QUALIFY FOR IRS 468A EXEMPTION. IN VIEW OF THIS, CONSIDERATION OF THE TAX DEDUCTION IS IMPORTANT TO PSC AND ITS CASH FLOW CALCULATIONS.

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'APR 211982 Docket No. 50-141:

t Dr. Roland Ac Finston, Director - ~

~'

Health Physics and Biosafety ,

Stanford University' '

67 Encina Hall .

Stanford, Calf fornia 94305 ,

Dear,

. Dr.' Finston:

By letter dalecf March 17,1981, we provided radiation criteria' for' release  !

. of the' dismantled Stanford Research Reactor to unrestricted access. That -  !

criteria specified Reg. Guide 1.86,for surface contamination and 5 micro ' .

Re3 per. hour at one meter for reactor generated, gamma emitting isotopes.

l Since March 17,1981,. we have refined further our position with respect to relea,se criteria and have determined that radiation from gamma emitting *

~ ' -isotopes is also acceptable if the potential exposure to individuals is 1.ess than 10 mrem per year.with reasonable occupancy assumptions. If you 1 wish to justify gamma exposure rates from reactor generated isotopes that

. are greater than 5 afcro Rem per hour. you should shev that reasonable

occupancy of that area would be suffi,ciently less than 2000 hour0.0231 days <br />0.556 hours <br />0.00331 weeks <br />7.61e-4 months <br /> per. year, which would result in exposures of less than 10 mrem per year -

Sincer E

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R James R.. Mill r, Chief ,

Standardization and Spec'tal

, ' Projects Branch '

Division of Licensi,ng e

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WAEMINGT ON. D. C. 20555

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.. , Ma.rch 17, 1981. ,

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Docket No. 50-141 : -

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• Dr. Roland A. Finston -

Director, Health Physics and Biosafety *" '

Stanford University . .-

67 Encina Hall . -

Stanford, California 94305

Dear.Dr. Finston:

By letters da the residual a,ted ctivity December at the dismantled9,1977 and June Research Stanford 3,1980 you provided Reactor. Youdata on "

• further requested termination of reactor License No. R-60. '. .

As discussed wi.th you, we hsve now determined the levels of r'adiation .

' that.would be acceptable for release of the Stanford reactor facility to unrestricted acces's. Enclosure No'.1 provides that criteria. Enclosure

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.. ho. 2-(Regulatory Guide 1.86) is also provided .for your information. -

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,. .Thereforer we can terminate License No. R-60 when our independent surveys

. confirm that you have removed sufficient residual radioactivity to meet the criteri.a of Enclosure No.1. - . .

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By copy of this letter to the NRC Region Y Office, we request that they -

. complete a confirmatory survey when you notify the NRC that your facility is in compliance with Enclosure No.1 criteria. -

incerely,

. - - I Jo n E.Reactors 0 rating Stolz, Chief Branc fl h f4 vision of Licensi,ng Inclosures: '

1. Radiation Levels for Release - -

to Unrestricted Access

2. Regulatory Guide 1.86 -

cc w/ enclosure 1 only:

• See next page e

O M O A QO

Enclosure 1 .

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. RADIATION LEVELS FOR RELEASE OF REACTOR '

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. FACILITY TO UNRESTRICTED

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• ACCESS Surface contaminat' ion' ,

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Surfaces must be decontaminated to levels consistent with Table 1 of *

. Reg. Guide 1.86. ..

Kadiomet'ive Material Other Than Surface Contamination (Co 50, Eu 152,' Cr 137)

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Co '60. Eu 152 and Cs 137 that may exist in concrete, components, structures. end soil'must be removed such that, the radiation lev (?

fr:m these isotopes is less than SpR/hr above natural background' "

as measured at one me.ter from sur) ce.

- General .

Site survey procedures acceptable to the NRC must be $ sed. .'

1- .

1) Radiation from naturally ~ occurring radioisotopes as measured at a ecmparable ' ,

' uncontaminated structure or exterior soil surface.

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