NRC Generic Letter 1997-03

NRC Generic Letter 1997-003: Annual Financial Surety Update Requirements for Uranium Recovery Licensees

ML031110051
Person / Time
Site:	Beaver Valley, Millstone, Hatch, Monticello, Calvert Cliffs, Dresden, Davis Besse, Peach Bottom, Browns Ferry, Salem, Oconee, Mcguire, Nine Mile Point, Palisades, Palo Verde, Perry, Indian Point, Fermi, Kewaunee, Catawba, Harris, Wolf Creek, Saint Lucie, Point Beach, Oyster Creek, Watts Bar, Hope Creek, Grand Gulf, Cooper, Sequoyah, Byron, Pilgrim, Arkansas Nuclear, Three Mile Island, Braidwood, Susquehanna, Summer, Prairie Island, Columbia, Seabrook, Brunswick, Surry, Limerick, North Anna, Turkey Point, River Bend, Vermont Yankee, Crystal River, Haddam Neck, Ginna, Diablo Canyon, Callaway, Vogtle, Waterford, Duane Arnold, Farley, Robinson, Clinton, South Texas, San Onofre, Cook, Comanche Peak, Yankee Rowe, Maine Yankee, Quad Cities, Humboldt Bay, La Crosse, Big Rock Point, Rancho Seco, Zion, Midland, Bellefonte, Fort Calhoun, FitzPatrick, McGuire, LaSalle, Fort Saint Vrain, Washington Public Power Supply System, Shoreham, Satsop, Trojan, Atlantic Nuclear Power Plant, Clinch River
Issue date:	07/09/1997
From:	Greeves J NRC/NMSS/DWM
To:
References
GL-97-003, NUDOCS 9707020310
Download: ML031110051 (4)

UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS

WASHINGTON, D.C. 20555 July 9, 1997 NRC GENERIC LETTER 97-03: ANNUAL FINANCIAL SURETY UPDATE REQUIREMENTS FOR

URANIUM RECOVERY LICENSEES

Addressees

Uranium Recovery Ucensees and State Officials.

Purpose

The U.S. Nuclear Regulatory Commission (NRC) is issuing this generic letter to notify addressees about certain procedural requirements for surety submittals. It is expected that recipients will review the information for applicability to their facilities and consider actions, as appropriate, to avoid problems. However, no specific action nor written response is required at this time.

Description of Circumstances

During the November 1996 meeting with the uranium recovery industry, sponsored by the NRC and the National Mining Association, the staff clarified NRC general procedural requirements for surety submittals. This letter documents these requirements for licensees' reference in future surety submittals.

Discussion Criterion 9 of 10 CFR Part 40, Appendix A, requ'...;s licensees to establish financial surety arrangements sufficient to carry out the decontamination, decommissioning of the mill and site, and reclamation of any tailings or waste disposal areas. In its annual review of sureties, the staff generally has considered only decommissioning, reclamation, and ground water corrective action plans, and revisions to those plans, that have been approved by NRC.

Criterion 9 states that the annual surety adjustment should "...recognize any increases or decreases resulting from inflation, changes in plans, activities performed, and any other conditions affecting costs." Therefore, licensee- proposed revisions to approved decommissioning, reclamation, and ground water corrective action plans are factors to be considered in the annual surety adjustment. To comply with the rule, any proposed revisions to decommissioning or reclamation plans submitted for NRC review and approval will need to be accompanied by an analysis of the change in cost to the approved plan. Such cost will need to be accounted for in the surety at the next annual surety update.

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GL 97-03 July 9, 1997 In addition, when considering the surety amount in an annual update, licensees should ensure that they are presenting the cost of remaining site reclamation and ground water corrective action plans, rather than simply subtracting the cost of completed work from the current surety. Future submittals that do not provide a cost basis showing the acceptability of the proposed surety amount will not be accepted for review. Failure to resubmit a revised surety with acceptable cost basis will be subject to appropriate enforcement action.

Finally, a recent review of financial assurance instruments for uranium recovery licensees has indicated that many amended surety instruments are not being transmitted to the appropriate NRC address or addressee. As a result, there have been delays in the receipt of surety instruments, and non-receipt, in some cases. All surety instruments should be transmitted by certified mail, under a cover letter, from the licensee to the Branch Chief, Uranium Recovery Branch, Division of Waste Management, U.S. Nuclear Regulatory Commission, Mail Stop T7J-

9, Washington, D.C. 20555. The docket number should be clearly identified on the transmittal letter and the surety instrument. Surety instruments should not be transmitted directly from banks or insuring organizations without a letter of transmittal from the licensee that clearly states the Source Material License number for the facility and the name of the licensee.

When required, information such as auditor reports, financial statements, or updated parent company documentation should be included.

It is expected that addressees will consider actions, as appropriate, to avoid problems, however, no specific action or written response is required.

If you have any questions about this matter, please contact the technical contact listed below or your NRC project manager.

(Original signed by)

John T. Greeves, Director Division of Waste Management Office of Nuclear Material Safety and Safeguards Technical contact: Daniel M. Gillen, NMSS

301-415-7295 E-mail: dmg2@nrc.gov Attachment: List of Recently Issued NRC Generic Letters Path & File Name: 97-03.GL

• See previous concurrence OFC URB* l TECH ED * URB* l OGC* AD COMM *

l l l_ l COORD, DWM

NAME DGillen/dh EKraus JHolonich RFonner RJohnson ATE 3/06/97 F 3/05/97 j 3/06/97 3/06/97 3/06/97 OFC GEN COMM DWM*

CORD,IMOBI* l l l ll NAME KRamsey JGreeves DATE 3/02/97 I 3/23/97ZZ

OFFICIAL RECORD COPY

GL 97- June , 1997 provide a cost basis showing the acceptability of the proposed surety amount will not be accepted for review. Failure to resubmit a revised surety with acceptable cost basis will be subject to appropriate enforcement action.

Finally, a recent review of financial assurance instruments for uranium recovery licensees has indicated that many amended surety instruments are not being transmitted to the appropriate NRC address or addressee. As a result, there have been delays in the receipt of surety instruments, and non-receipt.

in some cases. All surety instruments should be transmitted by certified mail, under a-cover letter, from the licensee to the Branch Chief, Uranium Recovery Branch, Division of Waste Management, U.S. Nuclear Regulatory Commission. Mail Stop T7J-9, Washington, D.C. 20555 The docket number should be clearly identified on the transmittal letter the surety instrument.

Surety instruments should not be transmitted di ectly from banks or insuring organizations without a letter of transmitta from the licensee that clearly states the Source Material License number r the facility and the name of the licensee. When required, information s as auditor reports, financial statements, or updated parent company ocumentation should be included.

It is expected that addressees wi consider actions, as appropriate, to avoid problems, however no specific ion or written response is required.

If you have any questions out this matter, please contact the technical contact listed below o your NRC project manager.

John T. Greeves, Director Division of Waste Management Office of Nuclear Material Safety and Safeguards CON ACT: Daniel M. Gillen, NMSS

(301) 415-7295 Attachment: List of Recently Issued NRC Generic Letters DISTRIBUTION:

File Center PUBLIC NMSS r/f URB r/f CSeelig q4Be4 CCain (RIV) DWM r/f dAustin -dim-ekey CNWRA

ACNW -MBeii- Path & File Name: S:\DWM\URB\DMG\GENCOMS\SURLTR.SUR

• See previous concurrence I

OFC URB* I TECH ED* URB* OGC* AD COMM

l l l ___COORD, l DWM

NAME DGiIIen/dh EKraus JHolonich RFonner RJohnson DATE 3/06/97 l 3/05/97 l 3/06/97 3/06/97 l 3/06/97 OFC GEN COMM DWM

CORD,IMOB .l NAME KRamsey JGr ves DATE 3/02/97 l 3/23/97 l lZ lIl OFFICIAL RECORD COPY

GL 97- March , 1997 provide a cost basis showing the acceptability of the proposed surety amount will not be accepted for review. Failure to resubmit a revised surety with acceptable cost basis will be subject to appropriate enforcement action.

Finally, a recent review of financial assurance instruments for uranium recovery licensees has indicated that many amended surety instruments are not being transmitted to the appropriate NRC address or addressee. As a result, there have been delays in the receipt of surety instruments, and non-receipt, in some cases. All surety instruments should be transmitted by certified mail, under a cover letter, from the licensee to the Branch Chief, Uranium Recovery Branch, Division of Waste Management, U.S. Nuclear Regulatory Commission, Mail Stop T7J-9, Washington, D.C. 20555. The docket number should be clearly identified on the transmittal letter and the surety instrument.

Surety instruments should not be transmitted directly from banks or insuring organizations without a letter of transmittal from the licensee that clearly states the Source Material License number for the facility and the name of the licensee. When required, information such as auditor reports, financial statements, or updated parent company documentation should be included.

It is expected that addressees will consider actions, as appropriate, to avoid problems, however no specific action or written response is required.

If you have any questions about this matter, please contact the technical contact listed below or your NRC project manager.

John T. Greeves, Director Division of Waste Management Office of Nuclear Material Safety and Safeguards

CONTACT

Daniel M. Gillen, NMSS

(301) 415-7295 Attachment: List of Recently Issued NRC Generic Letters DISTRIBUTION:

File Center PUBLIC NMSS r/f URB r/f CSeelig MBell CCain (RIV) DWM r/f JAustin JHickey CNWRA

ACNW MBell Path & File Name: S:\DWM\URB\DMG\GENCOMS\SURLTR.SUR

• See Drevious concurrence OFC URBAN 1 TECH ED* UREk l OGC AD COMM

I l l l l COORD, DWM l NAME DGillen/dh EKraus JHolonich RFonner RJohnson DATE 3)(497 3/05/97 - 31&/97 - - 3/06/97 - 3/06/97 OFC GEN COMM, DWMi( _

CORD,IMO~f l I

NAME KRamsey JGreeves DATE 3/02I97 i 31197 E ZIZIZZ

OFFICIAL RECORD COPY