ML24324A347
| ML24324A347 | |
| Person / Time | |
|---|---|
| Site: | Aerotest |
| Issue date: | 11/14/2024 |
| From: | Slaughter D Aerotest, Nuclear Labyrinth LLC |
| To: | Andrea Veil Office of Nuclear Material Safety and Safeguards |
| References | |
| Download: ML24324A347 (1) | |
Text
AEROTEST OPERATIONS, INC.
3455 FOSTORIA WAY
- SAN RAMON, CA 94583 * (925) 866-1212
- FAX (925) 866-1716 November 14, 2024 Andrea D Veil, Director Office of Nuclear Reactor Regulations U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 RE: $300,000.00 Cash secured irrevocable standby by letter of credit as required in Agencywide Documents Access and Management System (ADAMS) Accession Nos.
Dear Andrea D Veil,
Per ADAMS Accession Nos. ML16333A448 dated February 28, 2017, on the order approving the transfer of Facility Operating License No. R-98 Aerotest Radiography and Research Reactor (ARRR) to Nuclear Labyrinth it required both:
- 1. A cash secured irrevocable standby letter of credit from a federally insured bank in the amount of $300,000 that conforms to the guidance provided in NRC Regulatory Guide 1.159 must be executed at the time of, or before, the transfer.
- 2. A decommissioning trust fund for the Aerotest Radiography and Research Reactor (ARRR) that conforms to the guidance provided in NRC Regulatory Guide 1.159 must be established at the time of, or before, the transfer.
I find that having both a Letter of Credit and a fully funded Decommissioning Trust Fund to be redundant. The Decommissioning Trust Fund pays BMO (formerly Bank of the West) over $7,000.00 a year to have the Letter of Credit when the cash securing it is earning less than $30.00 a year in interest. From 2017 to 2024 the Decommissioning Trust fund has spend over $56,000.00 on securing a letter of credit, when it could have been earning 5%-10% on that money. The Decommissioning Trust fund has paid out about 19% of the total Letter of Credit so far and it cannot keep hemorrhaging money to pay for a service that is not actually connected to decommissioning of the reactor.
I am giving the NRC 30 days' notice ofmy right to the change in method of funding the decommissioning financial assurance on December 15, 2024, to only a Decommissioning Trust Fund. The $300,000.00 cash securing the Letter of Credit will be transferred to the Decommissioning Trust Fund once the Letter of Credit is terminated and the bank frees the funds.
The beneficiary of a Letter of Credit must issue a termination letter stating the Letter of Credit is no longer needed. As the NRC is the beneficiary of the Letter of Credit (ADAMS Accession Nos ML1803A742, ML18277Al96 andML18206A726). On or before December 15, 2024, the NRC needs to issue a termination letter to BMO (formerly Bank of the West) 6th Floor, 808 Center Drive, Los Angeles, CA 90045 with a copy to Aerotest Operations 3455 Fostoria Way, San Ramon, CA 94553.
I have the authority to make the change to in method of funding the decommissioning financial assurance per NRC Regulatory Guide 1.159 "Assuring the Availability of Funds for Decommissioning Nuclear Reactors," Revision 2, dated October 2011 (ADAMS Accession No. ML112160012). Section 2.1.6.1 lfthe licensee decides to change the funding method during the life of the facility or during the storage period, the licensee should notify the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as applicable, of this change at least 30 working days in advance of its effective date. Significant modifications to a funding method should also be submitted to the Director, Office of Nuclear Reactor Regulation, or the Director, Office of Nuclear Material Safety and Safeguards, as appropriate, at least 30 working days prior to the proposed effective date of the amendment, providing the text of the amendment and a statement of the reason for the proposed amendment.
If any additional information or clarification is required, please contact me at dmsraven@gmail.com or (801) 631-5919.
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge. Executed on November 14, 2024.
Respectfully,
~~\\-
David M Slaughter, PhD AO President, Reactor Administrator, General Manager. NRC-RO and Manager CEO Nuclear Labyrinth LLC.
cc:
ATTN: Document e ontrol Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001