ML091240167

Request for Additional Information Regarding Financial Qualifications for the Pennsylvania State University Penn State Breazeale Reactor License Renewal (TAC N0. MC9534)

ML091240167
Person / Time
Site:	Pennsylvania State University
Issue date:	05/06/2009
From:	William Kennedy Research and Test Reactors Licensing Branch
To:	Unlu K Pennsylvania State Univ
Kennedy W, NRR/ADRA/DPR/PRT, 415-2784
References
TAC MC9534
Download: ML091240167 (5)

Text

May 6, 2009 Dr. Kenan Unlu, Director Radiation Science and Engineering Center (RSEC)

Breazeale Nuclear Reactor University Park, PA 16802-2301

SUBJECT:

PENNSYLVANIA STATE UNIVERSITY, REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR PENN STATE BREAZEALE REACTOR LICENSE RENEWAL (TAC NO. MC9534)

Dear Dr. Unlu:

The U.S. Nuclear Regulatory Commission (NRC) is continuing the review of your application for renewal of Facility Operating License No. R-2 for the Pennsylvania State University Penn State Breazeale Reactor dated December 6, 2005, as supplemented by letters dated October 31, 2008, and April 2, 2009. During our review, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed requests for additional information no later than June 12, 2009. In accordance with Title 10 of the Code of Federal Regulations Part 50.30(b), your response must be executed in a signed original under oath or affirmation.

If you have any questions regarding this review, please contact me at 301-415-2784 or by electronic mail at William.Kennedy@nrc.gov.

Sincerely,

/RA/

William B. Kennedy, Project Manager Research and Test Reactors Branch A Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No.50-005

Enclosure:

As stated cc w/enclosure: See next page

Pennsylvania State University Docket No.50-005 cc:

Mr. Eric J. Boeldt, Manager of Radiation Protection The Pennsylvania State University 304 Old Main University Park, PA 16802-1504 Dr. Eva J. Pell Vice President and Dean of the Graduate School Pennsylvania State University 304 Old Main University Park, PA 16802-1504 Director, Bureau of Radiation Protection Department of Environmental Protection P.O. Box 8469 Harrisburg, PA 17105-8469 Test, Research, and Training Reactor Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611

May 6, 2009 Dr. Kenan Unlu, Director Radiation Science and Engineering Center (RSEC)

Breazeale Nuclear Reactor University Park, PA 16802-2301

SUBJECT:

PENNSYLVANIA STATE UNIVERSITY, REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR PENN STATE BREAZEALE REACTOR LICENSE RENEWAL (TAC NO. MC9534)

Dear Dr. Unlu:

The U.S. Nuclear Regulatory Commission (NRC) is continuing the review of your application for renewal of Facility Operating License No. R-2 for the Pennsylvania State University Penn State Breazeale Reactor dated December 6, 2005, as supplemented by letters dated October 31, 2008, and April 2, 2009. During our review, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed requests for additional information no later than June 12, 2009. In accordance with Title 10 of the Code of Federal Regulations Part 50.30(b), your response must be executed in a signed original under oath or affirmation.

If you have any questions regarding this review, please contact me at 301-415-2784 or by electronic mail at William.Kennedy@nrc.gov.

Sincerely,

/RA/

William B. Kennedy, Project Manager Research and Test Reactors Branch A Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No.50-005

Enclosure:

As stated cc w/enclosure: See next page DISTRIBUTION:

PUBLIC DPR/PRT r/f RidsNrrDpr RidsNrrDprPrta RidsNrrDprPrtb WKennedy, NRR GLappert, NRR ACCESSION NO.:ML091240167 Office PRTA:PM PRTA:LA PFPB:BC PRTA:BC PRTA:PM Name WKennedy GLappert Input Provided KBrock WKennedy Date 05/04/09 05/04/09 04/30/2009 05/06/09 05/06/09

OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR LICENSE RENEWAL FOR THE PENNSYLVANIA STATE UNIVERSITY BREAZEALE NUCLEAR REACTOR LICENSE NO. R-2 DOCKET NO.50-005 As required by Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2),

[a]pplicants to renew or extend the term of an operating license for a nonpower reactor shall include the financial information that is required in an application for an initial license. To comply with this requirement, please provide the following supplemental information to the Pennsylvania State University (the University, the applicant) request for additional information (RAI) responses dated October 31, 2008:

1. Under 10 CFR 50.33(d), Contents of applications; general information, certain information is required from the applicant, the University, as applicable. While the University provided some of the information pursuant to 10 CFR 50.33(d), additional information is still required. To comply with the regulation, please update the application to include the following information:

(a) The state where the University is incorporated or organized and the principal location where the University does business.

(b) The names, addresses and citizenship of the directors and principal officers (or if those positions do not exist, then equivalent positions, e.g., Board of Trustees).

2. The U.S. Nuclear Regulatory Commission (NRC) RAI (3) dated June 16, 2008, requested that the University update the application to 2008 to include: (1) a current (2008) cost estimate for decommissioning the facility showing costs of labor, waste disposal, other items (such as energy, equipment, and supplies), a contingency factor (normally 25%), and total decommissioning costs in 2008 dollars to meet the NRCs radiological release criteria; (2) a statement of the decommissioning method to be used (e.g., DECON); and (3) a full identification of the specific means of adjusting the cost estimate (e.g., consumer price index, waste burial cost data from NUREG-1307, or labor price index) periodically over the life of the facility and a numerical example updating the 2008 cost estimate.

In order for the NRC staff to complete its financial qualifications review, the NRC staff still needs the following additional information:

(a) A breakdown of costs of labor, waste disposal, and other items (such as energy, equipment, and supplies) in current (2008) dollars.

(b) A statement of the decommissioning method to be used (e.g., DECON or other method).

(c) A justification of the use of 5 percent inflation factor as the specific means of adjusting the cost estimate periodically over the life of the facility (e.g.,

independent study, consumer price index long-term historical data, etc.).

(d) A numerical example showing how previous cost estimates were updated to arrive at the 2008 decommissioning cost estimate.

3. The application states that the University is using a self-guarantee to fund and carry out its decommissioning activities. For renewal of the PSBR license, please provide the following additional information as a supplement to the RAI responses submitted by the University on October 31, 2008, for the NRC staffs review:

(a) Provide the Auditors Special Report confirming the Chief Executive Officer (CEO) or Chief Financial Officer (CFO) letter and reconciling amounts in the CEO or CFO letter with the Universitys financial statements (refer to A.14.11 of NUREG-1757, Vol. 3, Consolidated NMSS Decommissioning Guidance, for the model of the Auditors Special Report).

(b) Provide the facilitys address for which the guarantee provides financial assurance within the letter submitted by the Corporate Controller, and the Self-Guarantee Agreement (the NRC staff notes that this was provided within the Self-Guarantee Agreement dated December 11, 2006).

(c) Documentation that the signator of the Self-Guarantee Agreement (e.g.,

Corporate Controller), if not the CEO or CFO, has the authority to bind the University in the self-guarantee.

(d) The correct period that the guarantor agrees to submit financial statements and financial test data (refer to Section II.C.3 of Appendix E to 10 CFR Part 30 for Recital 8 regarding such time period).

(e) The relevant page(s) of the Self-Guarantee Agreement that includes the signature of a witness or notary (the NRC staff notes that the required signatures were provided within Self-Guarantee Agreement dated December 11, 2006).