ML25155A030
| ML25155A030 | |
| Person / Time | |
|---|---|
| Site: | Aerotest |
| Issue date: | 06/11/2025 |
| From: | William Allen Reactor Decommissioning Branch |
| To: | Slaughter D Aerotest |
| Shared Package | |
| ML25155A028 | List: |
| References | |
| EPID L-2025-DFA-0012 | |
| Download: ML25155A030 (1) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Dr. David M. Slaughter President and Reactor Administrator Aerotest Operations, Inc.
San Ramon, CA 94583
SUBJECT:
LETTER OF CREDIT TERMINATION REQUEST RESPONSE
Dear Dr. Slaughter:
The purpose of this letter is to share with you the Letter of Credit Termination Notification that the U.S. Nuclear Regulatory Commission (NRC) is sending to BMO Bank, upon your request.
On November 14, 2024 (ADAMS Accession No. ML24324A347), you notified the NRC of your intention to change the decommissioning financial assurance funding method associated with Facility Operating License No. R-98. You also requested that the NRC issue a letter to BMO Bank (formerly Bank of the West) stating that the Letter of Credit is no longer needed. By letter dated December 11, 2024 (ADAMS Accession No. ML24331A271), the NRC requested additional information to demonstrate continued compliance with NRC requirements without the letter of credit.
By letter dated March 21, 2025 (ADAMS Accession No. ML25084A281), you provided to the NRC the updated decommissioning cost estimate titled, Decommissioning Cost Estimate for the Aerotest Radiography and Research Reactor, Revision 3-17-2025, as well as the current value of two decommissioning trust fund accounts dedicated to the radiological decommissioning of the Aerotest facility. According to the information provided, the aggregate amount of funds exceeded the estimated cost to radiologically decommission the Aerotest facility.
Therefore, consistent with NRC regulations and license condition F(1)(c) that adequate funds will be available for decommissioning, there is no longer a need for the BMO Bank Letter of Credit to satisfy decommissioning funding assurance requirements. The enclosure to this letter provides the requested letter notifying BMO bank that the letter of credit can be terminated.
June 11, 2025
D. Slaughter 2
In accordance with Title 10 of the Code of Federal Regulations, Part 2.390(d) of the NRC Agency Rules of Practice and Procedure, a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records System component of NRCs Agencywide Documents Access and Management Systems (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room).
Sincerely, Chris Allen, Project Manager Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards Docket No. 50-228 License No. R-98 EPID No. L-2025-DFA-0012
Enclosure:
Letter of Credit Termination Authorization cc: California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814 Radiological Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Signed by Allen, William on 06/11/25
CUI//FNC UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 CUI//FNC BMO Bank N.A.
Global Trade Operations 13300 Crossroads Parkway North SC-XRD-2W-G City of Industry, CA 91746-3417
SUBJECT:
LETTER OF CREDIT TERMINATION NOTIFICATION To Whom It May Concern:
On February 28, 2017 (Agencywide Documents Access and Management System (ADAMS)
Package Accession No. ML16333A443), the U.S. Nuclear Regulatory Commission (NRC) approved the indirect transfer of Facility Operating License No. R-98 for the Aerotest Radiography and Research Reactor from Aerotest Operations, Inc. to Nuclear Labyrinth LLC.
The NRC conditioned approval of the Transfer on Nuclear Labyrinth, LLC obtaining a $300,000 Letter of Credit. On July 14, 2017 (ADAMS Accession No. ML18030A742), Bank of the West provided the NRC an Irrevocable Standby Letter of Credit as required by the Order approving the indirect license transfer, and on July 17, 2018 (ADAMS Accession No. ML18277A073),
Bank of the West provided the NRC an amendment to the Irrevocable Standby Letter of Credit.
On November 14, 2024 (ADAMS Accession No. ML24324A347), Nuclear Labyrinth, LLC requested the NRC issue a letter directing that the Letter of Credit be terminated. As explained in the letter, Nuclear Labyrinth, LLC provided an updated Decommissioning Cost Estimate and Decommissioning Trust in 2025 dollars, which demonstrate that the Decommissioning Trust Fund held by Nuclear Labyrinth, LLC is fully funded and that the Irrevocable Standby Letter of Credit decommissioning is not needed to provide reasonable assurance that Facility Operating License No. R-98 can be decommissioned.
Enclosures transmitted herewith contain SUNSI. When separated from enclosure(s), this transmittal document is decontrolled.
June 11, 2025
CUI//FNC CUI//FNC Consequently, the NRC requests that the Irrevocable Standby Letter of Credit be terminated.
Attached to this letter are both the original and amended Irrevocable Standby Letter of Credit issued by Bank of the West [Account Number
]. The BMO Bank, N.A. account number for the attached original and amended Irrevocable Standby Letter of Credit, as provided in separate non-public correspondence by Nuclear Labyrinth, LLC, is [
]. If you have any questions regarding this matter, please contact me by telephone at (301) 415-6877 or via e-mail at william.allen@nrc.gov.
Sincerely, Chris Allen, Project Manager Reactor Decommissioning Branch Division of Decommissioning, Uranium Recovery, and Waste Programs Office of Nuclear Material Safety and Safeguards
Enclosures:
Letters of Credit Signed by Allen, William on 06/11/25
ML25155A028; Ltr ML25155A030 OFFICE NMSS/REFS/FAB NMSS/DUWP/RDB NMSS/REFS/FAB NMSS/DUWP/RDB NAME SHarwell WAllen FMiller SAnderson DATE Jun 5, 2025 Jun 4, 2025 Jun 5, 2025 Jun 6, 2025 OFFICE OGC/GCRPS
/HLWFCNS/NLO*
NMSS/DUWP/RDB NAME ACoggins WAllen DATE Jun 11, 2025 Jun 11, 2025