ML20247J108

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Submits Info Re Financial Assurance Mechanisms Required for Decommissioning,Per 890401 Application for Amend.Commitment Will Not Satisfy Requirements of Regulation.Three Categories of Financial Assurance Mechanisms Available to Licensee
ML20247J108
Person / Time
Site: Framatome ANP Richland
Issue date: 09/12/1989
From: Bidinger G
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Malody C
SIEMENS POWER CORP. (FORMERLY SIEMENS NUCLEAR POWER
References
NUDOCS 8909200196
Download: ML20247J108 (2)


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> $l SEP 121989

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. Docket No. 70-1257 i

License No. S!M-1227 I

Advanced Nuclear Fuels Corporation ATTN:' Mr. C. W. Malody, Manager Corporate Licensing 2101 Horn Rapids Road

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'Richland,~ Washington. 99352-0130 Gentlemens-By amendment application ' dated April 1,1989, Advance Nuclear Fuels (ANF) proposed revisions to the license that stated, in part, that the existing ~ comit-ment by the parent rempany for decommissioning is submitted in compliance with I

the 10 CFR 70.25 requirement for financial assurance of decommissioning. Based l

on'ou+ review of the proposed revision, we concluded that the commitment will not sit.isfy the requirements of the regulation. Amendment No. 4, which was i

issued on August 11,.1989, incorporated License Condition 12 which excludes the proposed revision from the license.

i In accordance with the amendment letter, we are providing the following informa-tion on financial assurance mechanisms required for decommissioning under this regulation. ' Based on the. license expiration date of September 30, 1992, ANF has the option of submitting certification of financial assurance for decommission-ing in the amount of $750,000 or a decommissioning funding plan (DFP) on or before July 27, 1990.

If a certificate of financial assurance is submitted, ANF is then required to submit a DFP in any application for a license renewal.

Three categories of financial assurance mechanisms are available to ANF: (1) and (yment mechanisms; (2) surety methods, insurance, and parent guarantees; prepa

3) external sinking fund coupled with surety bond or insurance. The parent guarantee, however, may not be used in combination with other financial methods to satisfy decommissioning financial responsibility requirements.

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addition, ANF may not use a statement of intent since ANF is not a government

. licensee..

Guidance for preparing documents that must be submitted to demonstrate financial assurance is found in NUREG-1336,. Interim Guidance on the Standard l

Format and. Content of Financial Assurance Mechanisms Required for

. Decommissioning Under 10 CFR Parts 30, 40, and 70. A copy of this document is i

enclosed.

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I 8909200196 890912 PDR ADOCK 07001257 C

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Advanced' Nuclear. Fuels Corporation 2 If you should have any questions regarding this matter, please contt.ct Mr.

Scott Pennington of my staff on (301) 492-0693.

Sincerely, g Sigmd BT-George'H. Bidinger, Section Leader Uranium Fuel Section Fuel Cycle Safety Branch Division of Industrial and Medical Nuclear Safety, NMSS

Enclosure:

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DATE:9/IN89 9/ //89 9//9/89 0FFICIAL RECORD COPY