ML22153A513
| ML22153A513 | |
| Person / Time | |
|---|---|
| Site: | BWX Technologies |
| Issue date: | 07/12/2022 |
| From: | James Downs NRC/NMSS/DFM/FFLB |
| To: | |
| Downs J 3014157744 | |
| Shared Package | |
| ML22153A511 | List: |
| References | |
| L-2021-DFA-0010 | |
| Download: ML22153A513 (3) | |
Text
Enclosure SAFETY EVALUATION REPORT DOCKET NO.:
70-27 LICENSE NO.:
SNM-42 LICENSEE:
BWXT Nuclear Operations Group, Inc. - Lynchburg, Virginia
SUBJECT:
REQUEST TO AMEND MATERIALS LICENSE SNM-42, LICENSE APPLICATION CHAPTER 10, WITH UPDATED DECOMMISSIONING COST ESTIMATE
1.0 BACKGROUND
Nuclear facilities licensed under Title 10 of the Code of Federal Regulations (10 CFR), Part 70, are required to provide adequate financial assurance for decommissioning, decontamination and reclamation pursuant to 10 CFR 70.25, Financial assurance and recordkeeping for decommissioning. BWXT Nuclear Operations Group, Inc. - Lynchburg (BWXT NOG-L or the licensee) is the holder of Materials License SNM-42. Pursuant to 10 CFR 70.25(e)(2), BWXT NOG-L is required to submit the decommissioning funding plan and financial assurance every 3 years for Nuclear Regulatory Commission (NRC) review and approval to account for changes in costs and the extent of contamination.
By letter dated December 7, 2021 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML21344A061), BWXT NOG-L submitted a proposed change to SNM-42, License Application Chapter 10, to update the decommissioning cost estimate for its facility in Lynchburg, Virginia, as required by 10 CFR 70.25(e). The licensee supplemented its submittal by email dated March 31, 2022 (ADAMS Accession No. ML22094A100) and letter dated June 24, 2022 (ADAMS Accession No. ML22182A483).
The NRC staff utilizes NUREG-1757, Volume 3, Revision 1, Consolidated Decommissioning Guidance, Financial Assurance, Recordkeeping, and Timeliness, as guidance to evaluate the decommissioning funding plans submitted by 10 CFR Part 70 licensees.
2.0 REGULATORY REQUIREMENTS BWXT NOG-L remains responsible for the current status and future decommissioning of the licensed site and facility, will continue to abide by all commitments and representations previously made to NRC, and will continue to abide by all constraints, conditions, requirements, representations, and commitments identified in the license. Additionally, as required by 10 CFR 70.25(e), BWXT NOG-L must continue to submit an updated cost estimate for decommissioning for NRCs review at intervals not to exceed 3 years. After resolution of any NRC comments on the estimate, BWXT NOG-L must submit signed originals of the financial instruments reflecting an amount sufficient to cover the approved cost estimate. BWXT NOG-L remains liable for any decommissioning costs not covered by the financial instruments referenced above.
2 3.0 STAFF EVALUATION The 2021 decommissioning cost estimate (DCE) submitted by BWXT NOG-L updates its DCE submitted in 2018. In the current submittal, BWXT NOG-L proposes a DCE of $40,119,661, which is an increase of approximately $3,362,093 over its previous cost estimate of
$36,757,568.
In accordance with 10 CFR 70.25(e)(1)(ii) the licensee provided identification of and justification for using the key assumptions contained in the DCE and addressed the eight factors required by 10 CFR 70.25 (e)(2):
Spills of radioactive material - BWXT NOG-L indicates that there been no activities or events since the last DCE that have impacted the subsurface and any spills or leaks on the surface have been promptly cleaned.
Waste inventory increases - BWXT NOG-L indicates there have been no activities which have increased the waste above that which is estimated in the DCE.
Waste disposal costs increases - BWXT NOG-L indicates waste disposal costs have been updated and included in this DCE as required by regulation.
Facility modifications - BWXT NOG-L indicates there have been no facility modifications since 2018 that effect the current DCE.
Changes in authorized possession limits - BWXT NOG-L indicates there have been no changes in the authorized possession limits under License SNM-42 since the last DCE.
Actual remediation costs that exceed the previous cost estimate - BWXT NOG-L indicates actual remediation costs have been updated and included in the DCE as required by regulation.
On-site disposal - BWXT NOG-L indicates there have been no onsite disposal of radioactive material.
Use of a settling pond - BWXT NOG-L indicates there are no changes to the onsite pond, and it is addressed in the DCE.
Inventory - BWXT NOG-L indicates all inventory is customer owned and will be returned to the customer at customer expense.
Upon review of the licensees submittal, the staff found the DCE acceptable as it meets the regulatory requirements of 10 CFR 70.25(e). Specifically, BWXT NOG-L submitted a detailed cost estimate for decommissioning which: (1) reflects the cost of an independent contractor to perform decommissioning activities, (2) is based on unrestricted use, (3) includes an adequate contingency factor, and (4) identifies and provides justification for key assumptions.
4.0 ENVIRONMENTAL REVIEW This action involves a change to financial surety requirements. Pursuant to 10 CFR 51.22(c)(10),
this is a category of action that does not have a significant effect on the human environment.
3 Therefore, neither an environmental assessment nor an environmental impact statement is required for the proposed action.
5.0 CONCLUSION
Based on the evaluation discussed above, the NRC staff finds that the submitted DCE is based on reasonable and documented assumptions, and that it reasonably estimates the cost, at this time, to decommission the facility. Accordingly, the staff considers that the 2021 DCE submitted by BWXT NOG-L satisfies the requirements of 10 CFR 70.25(e) and is consistent with NUREG-1757, Volume 3, Revision 1. Therefore, the staff concludes that the BWXT NOG-L DCE of
$40,119,661 is acceptable. BWXT NOG-L shall appropriately revise its financial assurance mechanisms and Certification of Financial Assurance and submit them for NRC review within 30 days from the staffs approval date of the 2021 DCE.
The staff finds that the proposed update is acceptable and meets the regulatory requirements to provide financial assurance, as set forth in 10 CFR 70.25(e). Therefore, the staff concludes that there is reasonable assurance that the 2021 DCE will continue to provide adequate protection of public health, safety, safeguards, security, and the protection of the environment. The licensee remains liable for any costs not covered by the financial instruments.