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| | number = ML18054A077 | | | number = ML18054A077 |
| | issue date = 03/08/2018 | | | issue date = 03/08/2018 |
| | title = Aerotest Operations, Inc., Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor | | | title = Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor |
| | author name = Helvenston E | | | author name = Helvenston E |
| | author affiliation = NRC/NRR/DLP/PRLB | | | author affiliation = NRC/NRR/DLP/PRLB |
| | addressee name = Slaughter D M | | | addressee name = Slaughter D |
| | addressee affiliation = Aerotest Operations, Inc | | | addressee affiliation = Aerotest Operations, Inc |
| | docket = 05000228 | | | docket = 05000228 |
| Line 14: |
Line 14: |
| | page count = 4 | | | page count = 4 |
| | project = EPID:L-2017-PMP-0014 | | | project = EPID:L-2017-PMP-0014 |
| | stage = | | | stage = Other |
| }} | | }} |
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| =Text= | | =Text= |
| {{#Wiki_filter: | | {{#Wiki_filter:March 8, 2018 Dr. David M. Slaughter, President and Reactor Administrator Aerotest Operations Inc. |
| March 8, 2018 | | 3455 Fostoria Way San Ramon, CA 94583 |
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| Dr. David M. Slaughter, President and Reactor Administrator Aerotest Operations Inc. 3455 Fostoria Way San Ramon, CA 94583 | |
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| ==SUBJECT:== | | ==SUBJECT:== |
| AEROTEST OPERATIONS, INC. - IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR (CAC/DOCKET/EPID NO. 000954/05000228/L-2017-PMP-0014) | | AEROTEST OPERATIONS, INC. IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR (CAC/DOCKET/EPID NO. 000954/05000228/L-2017-PMP-0014) |
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| ==Dear Dr. Slaughter:== | | ==Dear Dr. Slaughter:== |
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| Aerotest Operations, Inc. (Aerotest) holds U.S. Nuclear Regulatory Commission (NRC) Facility Operating License No. R-98 for the operation of the Aerotest Radiography and Research Reactor (ARRR). On February 28, 2017, the NRC staff issued an order and safety evaluation consenting to the indirect transfer of the ARRR license to Nuclear Labyrinth, LLC (Agencywide Documents Access and Management System (ADAMS) Accession Nos. ML16333A446, ML16333A448, and ML16333A449). The NRC staff's order approving the transfer (ADAMS Accession No. ML16333A448) stated that the approval of the transfer was subject to certain conditions, including a requirement that "[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." NRC Regulatory Guide 1.159, "Assuring the Availability of Funds for Decommissioning Nuclear Reactors," Revision 2, dated October 2011 (RG 1.159), may be found at ADAMS Accession No. ML112160012. | | Aerotest Operations, Inc. (Aerotest) holds U.S. Nuclear Regulatory Commission (NRC) Facility Operating License No. R-98 for the operation of the Aerotest Radiography and Research Reactor (ARRR). On February 28, 2017, the NRC staff issued an order and safety evaluation consenting to the indirect transfer of the ARRR license to Nuclear Labyrinth, LLC (Agencywide Documents Access and Management System (ADAMS) Accession Nos. ML16333A446, ML16333A448, and ML16333A449). The NRC staffs order approving the transfer (ADAMS Accession No. ML16333A448) stated that the approval of the transfer was subject to certain conditions, including a requirement that [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. NRC Regulatory Guide 1.159, Assuring the Availability of Funds for Decommissioning Nuclear Reactors, Revision 2, dated October 2011 (RG 1.159), may be found at ADAMS Accession No. ML112160012. |
| On July 14, 2017, an irrevocable standby letter of credit from Bank of the West, in the amount of | | On July 14, 2017, an irrevocable standby letter of credit from Bank of the West, in the amount of |
| $300,000 (ADAMS Accession No. ML18030A742), was executed for the account of Aerotest, and the originally-signed letter of credit was sent to the NRC. The license transfer was subsequently consummated on July 17, 2017 (ADAMS Accession No. ML17138A310). The NRC staff has reviewed the letter of credit against the guidance in RG 1.159. RG 1.159 provides guidance to applicants and licensees of nuclear power, research, and test reactors concerning methods acceptable to the NRC staff for complying with requirements in the rules regarding the amount of funds for decommissioning, and also provides guidance on the content and form of the financial assurance mechanisms. RG 1.159, Appendix A-5, provides example wording for an irrevocable standby letter of credit for a nuclear reactor licensee. Although not applicable to nuclear reactor licensees, NUREG-1757, "Consolidated Decommissioning Guidance," Volume 3, "Financial Assurance, Recordkeeping, and Timeliness," Revision 1, dated February 2012 (ADAMS Accession No. ML12048A683), was also consulted by the NRC staff to help inform its review, because NUREG-1757 provides additional guidance regarding decommissioning letters of credit, including letters of credit which deviate from standard wording. NUREG-1757, Section A.6.4, provides example wording for an irrevocable standby letter of credit for NRC licensees other than nuclear reactor licensees that is similar to the example wording in RG 1.159, and NUREG-1757, Appendix A, Checklist 6-B, provides a list of D. Slaughter - 2 - terms and conditions needed in decommissioning letters of credit that deviate from the example wording provided in NUREG-1757, Section A.6.4. | | $300,000 (ADAMS Accession No. ML18030A742), was executed for the account of Aerotest, and the originally-signed letter of credit was sent to the NRC. The license transfer was subsequently consummated on July 17, 2017 (ADAMS Accession No. ML17138A310). |
| During its review, the NRC staff noted that Aerotest's letter of credit, dated July 14, 2017, does not appear to adequately conform to certain guidance provided in RG 1.159. Specifically:
| | The NRC staff has reviewed the letter of credit against the guidance in RG 1.159. RG 1.159 provides guidance to applicants and licensees of nuclear power, research, and test reactors concerning methods acceptable to the NRC staff for complying with requirements in the rules regarding the amount of funds for decommissioning, and also provides guidance on the content and form of the financial assurance mechanisms. RG 1.159, Appendix A-5, provides example wording for an irrevocable standby letter of credit for a nuclear reactor licensee. Although not applicable to nuclear reactor licensees, NUREG-1757, Consolidated Decommissioning Guidance, Volume 3, Financial Assurance, Recordkeeping, and Timeliness, Revision 1, dated February 2012 (ADAMS Accession No. ML12048A683), was also consulted by the NRC staff to help inform its review, because NUREG-1757 provides additional guidance regarding decommissioning letters of credit, including letters of credit which deviate from standard wording. NUREG-1757, Section A.6.4, provides example wording for an irrevocable standby letter of credit for NRC licensees other than nuclear reactor licensees that is similar to the example wording in RG 1.159, and NUREG-1757, Appendix A, Checklist 6-B, provides a list of |
| * The example wording in RG 1.159, Appendix A-5, specifies that, if the letter of credit will not be automatically extended, then at least 90 days before the current expiration date, the bank will notify both the NRC and the licensee. Aerotest's letter of credit appears to require such notification to the NRC, but not to the licensee.
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| * The example wording in RG 1.159, Appendix A-5, specifies that the bank shall give immediate notice to the licensee and the NRC of any notice received or action filed alleging (1) the insolvency or bankruptcy of the financial institution or (2) any violations of regulatory requirements that could result in suspension or revocation of the bank's charter or license to do business, and that the bank shall also give immediate notice if it, for any reason, becomes unable to fulfill its obligation under the letter of credit.
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| Aerotest's letter of credit does not appear to require such notification. In light of these apparent substantive differences between Aerotest's letter of credit, dated July 14, 2017, and RG 1.159, the NRC staff requests that Aerotest respond within 30 days of the receipt of this letter to explain how it complies, or plans on complying, with the license transfer condition that the irrevocable standby letter of credit "conforms to the guidance provided in NRC Regulatory Guide 1.159."
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| If you have any questions, or need additional time to respond to this request, please contact me at 301-415-4067, or by electronic mail at Edward.Helvenston@nrc.gov. Sincerely, /RA/ Edward Helvenston, Project Manager Research and Test Reactors Licensing Branch Division of Licensing Projects Office of Nuclear Reactor Regulation Docket No. 50-228 License No. R-98 cc: See next page Aerotest Operations, Inc. Docket No. 50-228 Sandra Warren, General Manager Aerotest Operations, Inc.
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| 3455 Fostoria Way San Ramon, CA 94583
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| California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814
| | D. Slaughter terms and conditions needed in decommissioning letters of credit that deviate from the example wording provided in NUREG-1757, Section A.6.4. |
| | During its review, the NRC staff noted that Aerotests letter of credit, dated July 14, 2017, does not appear to adequately conform to certain guidance provided in RG 1.159. Specifically: |
| | * The example wording in RG 1.159, Appendix A-5, specifies that, if the letter of credit will not be automatically extended, then at least 90 days before the current expiration date, the bank will notify both the NRC and the licensee. Aerotests letter of credit appears to require such notification to the NRC, but not to the licensee. |
| | * The example wording in RG 1.159, Appendix A-5, specifies that the bank shall give immediate notice to the licensee and the NRC of any notice received or action filed alleging (1) the insolvency or bankruptcy of the financial institution or (2) any violations of regulatory requirements that could result in suspension or revocation of the banks charter or license to do business, and that the bank shall also give immediate notice if it, for any reason, becomes unable to fulfill its obligation under the letter of credit. |
| | Aerotests letter of credit does not appear to require such notification. |
| | In light of these apparent substantive differences between Aerotests letter of credit, dated July 14, 2017, and RG 1.159, the NRC staff requests that Aerotest respond within 30 days of the receipt of this letter to explain how it complies, or plans on complying, with the license transfer condition that the irrevocable standby letter of credit conforms to the guidance provided in NRC Regulatory Guide 1.159. |
| | If you have any questions, or need additional time to respond to this request, please contact me at 301-415-4067, or by electronic mail at Edward.Helvenston@nrc.gov. |
| | Sincerely, |
| | /RA/ |
| | Edward Helvenston, Project Manager Research and Test Reactors Licensing Branch Division of Licensing Projects Office of Nuclear Reactor Regulation Docket No. 50-228 License No. R-98 cc: See next page |
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| Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Test, Research and Training Reactor Newsletter P.O. Box 118300 University of Florida Gainesville, FL 32611 D. Slaughter - 3 - SUBJECT: AEROTEST OPERATIONS, INC. - IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR DATE: MARCH 8, 2018 DISTRIBUTION: PUBLIC PRLB R/F RidsNrrDlpProb NParker, NRR RidsNrrDlpPrlb CMontgomery, NRR CBassett, NRR EHelvenston, NRR RidsNrrDlp AMendiola, NRR AAdams, NRR RidsOgcMailCenter ABowers, NRR MFlores, NMSS RAugustus, NMSS CMcKenney, NMSS SLynch, NRR MDusaniwskyj, NRR JWachutka, OGC | | Aerotest Operations, Inc. Docket No. 50-228 Sandra Warren, General Manager Aerotest Operations, Inc. |
| | 3455 Fostoria Way San Ramon, CA 94583 California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814 Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Test, Research and Training Reactor Newsletter P.O. Box 118300 University of Florida Gainesville, FL 32611 |
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| ADAMS Accession No. ML18054A077 *concurred via email OFFICE NRR/DLP/PRLB/PM NRR/DLP/PRLB/LA*NRR/DLP/PRLB/ABC OGC/NLO* NRR/DLP/PRLB/PM NAME EHelvenston NParker SLynch JWachutka EHelvenston DATE 2/27/2018 2/23/2018 3/7/2018 3/8/2018 3/8/2018 OFFICIAL RECORD COPY
| | ML18054A077 *concurred via email OFFICE NRR/DLP/PRLB/PM NRR/DLP/PRLB/LA* NRR/DLP/PRLB/ABC OGC/NLO* NRR/DLP/PRLB/PM NAME EHelvenston NParker SLynch JWachutka EHelvenston DATE 2/27/2018 2/23/2018 3/7/2018 3/8/2018 3/8/2018}} |
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Letter Sequence Other |
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Initiation
- Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request, Request
- Acceptance...
Results
Other: ML18054A077, ML18087A340, ML18127B706, ML18128A034, ML18155A603, ML18162A117, ML18162A118, ML18162A129, ML18193A141, ML18268A344, ML18340A171, ML18340A276, ML19015A352, ML19071A185
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MONTHYEARML18030A7422017-07-14014 July 2017
Irrevocable Standby Letter of Credit (Redacted)
Project stage: Request
ML18054A0772018-03-0808 March 2018
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML18092A0872018-03-27027 March 2018
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Request
ML18087A3892018-03-28028 March 2018
Meeting Slides for the April 3, 2018, Public Meeting Between Shine Medical Technologies. Inc. and the NRC
Project stage: Request
ML18162A0542018-03-28028 March 2018, 29 March 2018, 3 April 2018, 18 June 2018
Shine Medical Technologies, Inc. April 3, 2018 Public Meeting
Project stage: Request
ML18096A6882018-04-0303 April 2018
Confirmatory Action Letter (CAL) No. NRR-2011-001
Project stage: Request
ML18096A4552018-04-0303 April 2018
Shine Operating License Pre-Application Meeting (Environmental Presentation Slides)
Project stage: Request
ML18087A3402018-04-0303 April 2018
Response to Request for Extension of Time to Respond to Letter Regarding Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML18096A6892018-04-0303 April 2018
Arrr Restart Plan (4/3/2018) Approach to Critical, Control Rod and Power Calibrations
Project stage: Request
ML18130A5782018-05-0707 May 2018
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Request
ML18162A1362018-05-11011 May 2018, 18 June 2018
Shine Medical Technologies, Inc. May 23, 2018 Public Meeting
Project stage: Request
ML18138A2912018-05-16016 May 2018
Shine Medical Technologies, Inc. - Submittal of Meeting Slides for the May 23 and 24, 2018 with NRC
Project stage: Request
ML18128A0342018-05-16016 May 2018
Response to Second Request for Extension of Time to Respond to Letter Regarding Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML18156A1302018-06-0101 June 2018
Inc. - Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Request
ML18155A6032018-06-0707 June 2018
Response to Third Request for Extension of Time to Respond to Letter Regarding Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML18162A1172018-06-18018 June 2018
Shine Medical Technologies Acknowledgment of Receipt of 2016 Annual Financial Report
Project stage: Other
ML18162A0552018-06-18018 June 2018
Shine Medical Technologies April 3, 2018 Public Meeting Summary
Project stage: Meeting
ML18162A1162018-06-18018 June 2018
Shine Medical Technologies Annual Financial Report
Project stage: Request
ML18162A1182018-06-18018 June 2018
Shine Medical Technologies Response to Request for Withholding Letter for 2016 Annual Financial Report
Project stage: Other
ML18162A1292018-06-18018 June 2018
Shine Medical Technologies, Inc. - Acknowledgment of Receipt of Periodic Reports on Construction Permit Conditions
Project stage: Other
ML18162A1382018-06-18018 June 2018
May 23-24, 2018, Summary of Meeting with Shine Medical Technologies, Inc
Project stage: Meeting
ML18127B7062018-06-21021 June 2018
Closure of NRC Confirmatory Action Letter No. NRR-2011-001
Project stage: Other
ML18221A4532018-06-27027 June 2018, 17 August 2018
Shine Medical Technologies, Inc. June 2018 Public Meeting
Project stage: Request
ML18187A2162018-07-0202 July 2018
Resubmittal of Meeting Slides for the June 28, 2018, Public Meeting Between Shine Medical Technologies, Inc. and the NRC
Project stage: Request
ML18197A0802018-07-10010 July 2018
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Request
ML18193A1412018-07-16016 July 2018
Response to Fourth Request for Extension of Time to Respond to Letter Regarding Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML18277A1962018-07-17017 July 2018
Amendment to Standby Letter of Credit (Redacted)
Project stage: Request
ML18206A7262018-07-18018 July 2018
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor (Redacted)
Project stage: Request
ML18221A4542018-08-17017 August 2018
Summary of Meeting with Shine Medical Technologies, Inc.
Project stage: Meeting
ML18239A2192018-08-27027 August 2018
Request for Confirmation of the 10 CFR Part 140 Financial Protection Requirements for the Shine Facility
Project stage: Request
ML18268A3442018-10-0202 October 2018
Letter of Appreciation for the Tour of the Research Test Reactor Fuel Fabrication Facility Provided to the U.S. Nuclear Regulatory Commission on August 21, 2018 EPID No. L-2017-PMP-0014
Project stage: Other
ML18340A1712018-12-10010 December 2018
Shine Medical Technologies, Inc. - Acknowledgement of Receipt of Periodic Report on Construction Permit Conditions
Project stage: Other
ML18340A2762018-12-19019 December 2018
Shine Medical Technologies, Inc. - Acknowledgment of Receipt of Request for Confirmation of Applicable Financial Protection Requirements
Project stage: Other
ML19025A2642019-01-22022 January 2019
Shine Medical Technologies, Inc. Submittal of Meeting Slides for the January 29 and 30, 2019 Meeting with the NRC
Project stage: Request
ML19024A3522019-01-22022 January 2019
Shine Medical Technologies - Meeting Slides for the January 31, 2019 Public Meeting Between Shine Medical Technologies, Inc. and the NRC
Project stage: Request
ML19025A2752019-01-22022 January 2019
Shine Medical Technologies, Inc. Submittal of Meeting Slides for the January 29 and 30, 2019 Meeting with the NRC
Project stage: Request
ML19015A3522019-02-15015 February 2019
Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor
Project stage: Other
ML19071A1852019-03-22022 March 2019
Shine Medical Technologies, Inc. - Request for Withholding from Public Disclosure
Project stage: Other
ML19071A1812019-03-22022 March 2019
Shine Medical Technologies, Inc. - January 31, 2019 Public Meeting Summary
Project stage: Meeting
ML19071A1792019-03-22022 March 2019
Shine Medical Technologies, Inc. January 31, 2019 Public Meeting
Project stage: Request
ML19071A1802019-03-22022 March 2019
Shine Medical Technologies, Inc. - Request for Withholding Information from Public Disclosure
Project stage: Withholding Request Acceptance
2018-06-18
[Table View] |
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Category:Letter
MONTHYEARML24270A2422024-09-26026 September 2024
OIG Case 21-012 Response to OIG Letter Dated September 4, 2024 Regarding NRC-OIG Decision to Carry Over Case 21-012 Investigation Findings to Report for Case 21-016
ML24235A5122024-08-22022 August 2024
NRC-OIG_Failure_8-22-24_final
ML24220A0532024-08-12012 August 2024
Response to Dr. Slaughter on Final Denial of Claims
ML24197A1112024-07-10010 July 2024
Letter Regarding Denying Reimbursement for Service the NRC Did Not Perform in a Satisfactory Manner
ML24151A6482024-06-0303 June 2024
Changes in Reactor Decommissioning Branch Project Management Assignments for Some Decommissioning Facilities
ML24134A2072024-05-13013 May 2024
Aerotest - NRC Acknowledgment Letter for CFH Program NOV EA-23-118
ML24108A0762024-05-0606 May 2024
Missing Documents on Agencywide Documents Access and Management System
ML24085A2662024-03-20020 March 2024
Requesting a Comprehensive Congressional Review Be Conducted of the NRCs Performance Concerning Their Actions Associated with Aerotest Operations Inc (AO) as Outlined in NRC-OIG Investigation 021-012 and 021-016
ML24073A2182024-03-18018 March 2024
Inc. - NRC Inspection Report 050 00228/2023001, Response to Disputed Minor Violation
ML24061A0232024-02-27027 February 2024
EA-23-118, Violation 050-00228/203-001-00lA
ML24057A0102024-02-21021 February 2024
Inc - Minor Violation (TS 12.6.1) 050-00228/2023-001 and NRCs Definition of Annually
ML24057A0112024-02-21021 February 2024
Inc - Response to Notice of Violation No 05000228/2020201
IR 05000228/20202012024-02-20020 February 2024
NRC Inspection Report 05000228/2020201, and Disputed Cited Violation Closed
ML24054A0542024-02-16016 February 2024
Missing Documents on Agencywide Documents Access and Management System (ADAMS)
ML24039A0382024-02-0808 February 2024
NRC Inspection Report 050-00228/2023-001 (Revised), and Notice of Violation
IR 05000228/20230012024-02-0505 February 2024
NRC Inspection Report 050-00228/2023-001, Disputed Cited Violation and Minor Violation Revised, EA-23-118
ML24025A1672024-02-0505 February 2024
NRC Inspection Report 050-00228/2023-001, Disputed Cited Violation and Minor Violation Revised, EA-23-118
ML24026A0572024-01-23023 January 2024
EA-23-118 - Missing NRCs 90-day Written Response to Aerotest Operations, Inc., Response to NRC Inspection Report 05000228/2023001 and Dispute of Violation
ML24011A2242023-11-10010 November 2023
Letter Informing That New Information Is Available to Show Inadequate Oversight by NRC Caused Damage to Other Non-Power Nuclear Facilities
ML23279A1062023-10-0202 October 2023
Response to Violation 05000228/2023001-001B
ML23255A0362023-09-0909 September 2023
Response to Inspection Report 050-00228/2023-001
ML23255A0342023-09-0909 September 2023
Response to Violation 050-00228/2023-001-00lA
ML23219A1882023-08-24024 August 2023
NRC Inspection Report 05000228/2023001, and Notice of Violation
ML23187A0582023-07-0101 July 2023
July 1, 2022 Thru June 30, 2023 Summary of Changes, Tests, and Experiments
ML23187A0562023-07-0101 July 2023
Radiation Safety Officer Change Update
ML23157A0662023-05-24024 May 2023
Letter from David Slaughter, Aerotest Operations, Inc. Inadequate Oversight of Non-Power Reactor OIG Case No. 21-012 and Requested Payment for Damages Caused by the Nrc'S Inadequate Oversight
ML22361A1022023-02-24024 February 2023
Reactor Decommissioning Branch Project Management Changes for Some Decommissioning Facilities and Establishment of Backup Project Manager for All Decommissioning Facilities
ML22340A0062022-11-16016 November 2022
Reference Documents from Decommissioning Plan
ML22215A1522022-07-21021 July 2022
Aerotest Radiography and Research Reactor - AO RAI Responses for Decommissioning Plan
ML22187A0852022-07-0101 July 2022
Inc - July 1, 2021 Thru June 30, 2022 Summary of Changes, Tests, and Experiments
ML22152A2522022-06-28028 June 2022
Request for Additional Information on Review of Request for Amendment to Approve Decommissioning Plan, Arrr (License No. R-98, Docket No. 50-228)
ML22060A2602022-03-21021 March 2022
Change in NRC Staff Project Management Responsibility for the Aerotest Radiography and Research Reactor
ML22040A1992022-03-0909 March 2022
Examination Confirmation Letter No. 50-288/OL-22-03, Reed College
ML22025A2002022-01-20020 January 2022
Amendment to AO Decommissioning Plan Submittal Letter Dated July 20, 2021, Agencywide Documents Access, and Management System (ADAMS) Accession No. ML21230A304
ML21307A3242022-01-12012 January 2022
Request for Supplemental Information for Decommissioning Plan, Arrr (License R-98, Docket 50-228)
ML21344A0332022-01-0303 January 2022
Aerotest Letter from the Chief Financial Officer Regarding Additional Information for the Fees Assessed Under to Aerotest Operations, Inc. (Aerotest) within Invoice Number Lfb 22-0346
ML21361A0472021-12-21021 December 2021
Response to December 6, 2021 NRC Pol Issuance; the Licensee and Its Reactor Safeguard Committee Request a Reasonable Opportunity to Review and Address Short Comings of the Draft Licensee and Technical Specifications Along with the Draft Sa
ML21242A4632021-12-0606 December 2021
Issuance of License Amendment No. 6 to Facility Operating License No. R-98 for the Aerotest Radiography and Research Reactor with Partial Denial of Amendment Request
ML21307A1252021-10-28028 October 2021
Letter Regarding Charges Billed
ML21230A3042021-07-20020 July 2021
Decommissioning Plan Submittal (Redacted)
ML21209A5192021-07-20020 July 2021
Aerotest Radiography and Research Reactor, Response to NRC Letter Dated July 12, 2021 (ML21188A391)
ML21147A3732021-07-19019 July 2021
Correction of Letters Regarding Closure of Confirmatory Action Letter No. NRR-04-003 and Review of Physical Security Plan
ML21188A3912021-07-12012 July 2021
Inc. - Revised Completion Date Possession-Only License Amendment Request for the Aerotest Radiography and Research Reactor Facility Operating License
ML21193A0892021-07-0101 July 2021
Emergency Plan (Redacted)
ML21188A2162021-07-0101 July 2021
July 1, 2020 Through June 30, 2021 Summary of Changes, Tests, and Experiments
ML21181A1232021-06-22022 June 2021
License and TS Amendments
ML21147A0602021-05-19019 May 2021
Response to RAI 28 and 29
ML21056A3172021-04-30030 April 2021
CFO Response to Aerotest November 11 2020 Letter
ML21126A1502021-04-28028 April 2021
License and TS Amendments
ML21098A1572021-03-31031 March 2021
Response to RAI CFH Training and Requalification Program- 3/30/21
2024-09-26
[Table view] |
Text
March 8, 2018 Dr. David M. Slaughter, President and Reactor Administrator Aerotest Operations Inc.
3455 Fostoria Way San Ramon, CA 94583
SUBJECT:
AEROTEST OPERATIONS, INC. IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR (CAC/DOCKET/EPID NO. 000954/05000228/L-2017-PMP-0014)
Dear Dr. Slaughter:
Aerotest Operations, Inc. (Aerotest) holds U.S. Nuclear Regulatory Commission (NRC) Facility Operating License No. R-98 for the operation of the Aerotest Radiography and Research Reactor (ARRR). On February 28, 2017, the NRC staff issued an order and safety evaluation consenting to the indirect transfer of the ARRR license to Nuclear Labyrinth, LLC (Agencywide Documents Access and Management System (ADAMS) Accession Nos. ML16333A446, ML16333A448, and ML16333A449). The NRC staffs order approving the transfer (ADAMS Accession No. ML16333A448) stated that the approval of the transfer was subject to certain conditions, including a requirement that [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. NRC Regulatory Guide 1.159, Assuring the Availability of Funds for Decommissioning Nuclear Reactors, Revision 2, dated October 2011 (RG 1.159), may be found at ADAMS Accession No. ML112160012.
On July 14, 2017, an irrevocable standby letter of credit from Bank of the West, in the amount of
$300,000 (ADAMS Accession No. ML18030A742), was executed for the account of Aerotest, and the originally-signed letter of credit was sent to the NRC. The license transfer was subsequently consummated on July 17, 2017 (ADAMS Accession No. ML17138A310).
The NRC staff has reviewed the letter of credit against the guidance in RG 1.159. RG 1.159 provides guidance to applicants and licensees of nuclear power, research, and test reactors concerning methods acceptable to the NRC staff for complying with requirements in the rules regarding the amount of funds for decommissioning, and also provides guidance on the content and form of the financial assurance mechanisms. RG 1.159, Appendix A-5, provides example wording for an irrevocable standby letter of credit for a nuclear reactor licensee. Although not applicable to nuclear reactor licensees, NUREG-1757, Consolidated Decommissioning Guidance, Volume 3, Financial Assurance, Recordkeeping, and Timeliness, Revision 1, dated February 2012 (ADAMS Accession No. ML12048A683), was also consulted by the NRC staff to help inform its review, because NUREG-1757 provides additional guidance regarding decommissioning letters of credit, including letters of credit which deviate from standard wording. NUREG-1757, Section A.6.4, provides example wording for an irrevocable standby letter of credit for NRC licensees other than nuclear reactor licensees that is similar to the example wording in RG 1.159, and NUREG-1757, Appendix A, Checklist 6-B, provides a list of
D. Slaughter terms and conditions needed in decommissioning letters of credit that deviate from the example wording provided in NUREG-1757, Section A.6.4.
During its review, the NRC staff noted that Aerotests letter of credit, dated July 14, 2017, does not appear to adequately conform to certain guidance provided in RG 1.159. Specifically:
- The example wording in RG 1.159, Appendix A-5, specifies that, if the letter of credit will not be automatically extended, then at least 90 days before the current expiration date, the bank will notify both the NRC and the licensee. Aerotests letter of credit appears to require such notification to the NRC, but not to the licensee.
- The example wording in RG 1.159, Appendix A-5, specifies that the bank shall give immediate notice to the licensee and the NRC of any notice received or action filed alleging (1) the insolvency or bankruptcy of the financial institution or (2) any violations of regulatory requirements that could result in suspension or revocation of the banks charter or license to do business, and that the bank shall also give immediate notice if it, for any reason, becomes unable to fulfill its obligation under the letter of credit.
Aerotests letter of credit does not appear to require such notification.
In light of these apparent substantive differences between Aerotests letter of credit, dated July 14, 2017, and RG 1.159, the NRC staff requests that Aerotest respond within 30 days of the receipt of this letter to explain how it complies, or plans on complying, with the license transfer condition that the irrevocable standby letter of credit conforms to the guidance provided in NRC Regulatory Guide 1.159.
If you have any questions, or need additional time to respond to this request, please contact me at 301-415-4067, or by electronic mail at Edward.Helvenston@nrc.gov.
Sincerely,
/RA/
Edward Helvenston, Project Manager Research and Test Reactors Licensing Branch Division of Licensing Projects Office of Nuclear Reactor Regulation Docket No. 50-228 License No. R-98 cc: See next page
Aerotest Operations, Inc. Docket No. 50-228 Sandra Warren, General Manager Aerotest Operations, Inc.
3455 Fostoria Way San Ramon, CA 94583 California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814 Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Test, Research and Training Reactor Newsletter P.O. Box 118300 University of Florida Gainesville, FL 32611
ML18054A077 *concurred via email OFFICE NRR/DLP/PRLB/PM NRR/DLP/PRLB/LA* NRR/DLP/PRLB/ABC OGC/NLO* NRR/DLP/PRLB/PM NAME EHelvenston NParker SLynch JWachutka EHelvenston DATE 2/27/2018 2/23/2018 3/7/2018 3/8/2018 3/8/2018