ML20238F637: Difference between revisions

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I licenses and are required to provide such financial assurance. That mechanism consists of a
I licenses and are required to provide such financial assurance. That mechanism consists of a
!        ' Standby Trust Agreement and associated Standby Letters of Credit. Westinghouse (1886) recently updated its certification of decommissioning financial assurance: (1) by a filing dated March 22,1996, Ref. RA %-025 AJN, which was accepted by the NRC by {{letter dated|date=March 29, 1996|text=letter dated March 291996}}; and (2) by a filing dated March 6,1997, Ref. RA-97-031, which was accepted by the NRC by {{letter dated|date=April 23, 1997|text=letter dated April 23,1997}}. These current decommissioning
!        ' Standby Trust Agreement and associated Standby Letters of Credit. Westinghouse (1886) recently updated its certification of decommissioning financial assurance: (1) by a filing dated March 22,1996, Ref. RA %-025 AJN, which was accepted by the NRC by letter dated March 291996; and (2) by a filing dated March 6,1997, Ref. RA-97-031, which was accepted by the NRC by {{letter dated|date=April 23, 1997|text=letter dated April 23,1997}}. These current decommissioning
;.        financial assurance documents and NRC approval letters are attached as Exhibit C hereto.
;.        financial assurance documents and NRC approval letters are attached as Exhibit C hereto.
By no later than the closing date, WELCO will have in place financial assurance arrangements for decommissioning through a Standby Trust Agreement and associated Standby Letters of Credit, in the form attached as Exhibit D hereto, and in the amount necessary to maintain compliance with all regulatory requirements. The documents contained in Exhibit D are in the form currently approved by the NRC. Westinghouse (1886) u'nderstands that to obtain NRC approval of the transfers as of the closing date, the Standby Trust Agreement and associated Letters of Credit must be in place and. effective as of that date. Copies of executed financial instruments will be transmitted by Westinghouse (1886) to the NRC for acceptance as soon as they have been executed.
By no later than the closing date, WELCO will have in place financial assurance arrangements for decommissioning through a Standby Trust Agreement and associated Standby Letters of Credit, in the form attached as Exhibit D hereto, and in the amount necessary to maintain compliance with all regulatory requirements. The documents contained in Exhibit D are in the form currently approved by the NRC. Westinghouse (1886) u'nderstands that to obtain NRC approval of the transfers as of the closing date, the Standby Trust Agreement and associated Letters of Credit must be in place and. effective as of that date. Copies of executed financial instruments will be transmitted by Westinghouse (1886) to the NRC for acceptance as soon as they have been executed.

Latest revision as of 09:25, 19 March 2021

Matls Licensing Package for Amend 20 to License SNM-0047 for Westinghouse Electric Corp.Control:124926
ML20238F637
Person / Time
Site: 07000048
Issue date: 01/23/1998
From: Kinneman J
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION I)
To:
References
124926, NUDOCS 9809040156
Download: ML20238F637 (128)
v • d • e


Text

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JAN 231998 Mr. A. J. Nardi License Administrator Regulatory Affairs Westinghouse Electric Company, a division of CBS Corporation P. O. Box 355 Pittsburgh, PA 15230-0355

Dear Mr. Nardi:

This refers to your license amendment request. Enclosed with this letter is the amended license.

Please review the enclosed document carefully and be sure that you understand and fully implement all the conditions incorporated into the amended license. If there are any errors or questions, please notify the U.S. Nuclear Regulatory Commission, Region -

I Office, Licensing Assistance Team, (610) 337-5093 or 5239, so that we can provide appropriate corrections and answers. -

Thank you for your cooperation.

Sincerely, Original Signed By:

John D. Kinneman, Chief Nuclear Materials Safety Branch 2 Division of Nuclear Materials Safety License No. SNM-47 Docket No. 070-00048 Control No. 124926

Enclosure:

Amendment No. 20 3 u. , 't

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. OFFICIAL RECORD COPY ML109909040156 990123 PDR ADOCK 07000048 C PDR

i A Nardi Westinghouse Electric Company, a division of CBS Corporation

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DOCUMENT NAME: R:\WPS\MLTR\LSNM-47 To receive e copy of this alocuenent, Indcote in the bos: "C" = Copy w/o attach /enct *E" = Copy w/ sttach/enci *N* = No copy OFFICE DNMS/RI N q%MS/RI [g [

NAME JBondick/jmb g W man l

t DATE 01/22/98 01/32/88 01/ /98 01/ /98 l

OFFICIAL RECORD COPY l

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NRC FORM 374 PAGE I OF b m; I

, U.S. NUCLEAR REGULATORY COMMISSION PAGES p MATERIALS LICENSE Amendment No. 20 9,

g Pursuant to the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974 (Public Law 93-438), and Title in. Code of

@l g l Federal Regulations, Chapter I. Parts 30,31,32. 33,34,35,36. 39,40, and 70, and in reliance on statements and representations heretof g g by the licensee, a license is hereby issued authorizing the licensee to receive, acquire, possess, and transfer byproduct, source, I- miterial designated below; to use such material for the purpose (s) and at the place (s) designated below; to deliver or transfer such materia 3l t N persons authorized to receive it in accordance with the regulations of the applicable Part(s). This license shall be deemed to contain the conditions

$l specified in Section 183 of the Atomic Energy Act of 1954, as amended, and is subject to all applicable rules, regulations, and ordersRof the N Nuclear Regulatory Commission now or hereafter in effect and to any conditions specified below,

  • kl R OFFICIALRECORDCOPY n Ucen a @!

In accordance with the letter dated ,!

ecem , 1997, Di 3 Westinghouse Electric Company, 3. .icense m r SNM-47 is amended in g a division of CBS Corporation its entirety to read as follows: [

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2.P.O. Box 355 "!

Pittsburgh, PA 15230-0355 mpiration Date "

$l February 28, 2002 g 5. DocLet or h

3i g Reference No. 070-00048 3l g 6. Byproduct, Source, and/or 7. Chemical and/or Physical Special Nuclear Material 8. Maximum Amount that Licensee  !

a Form May Possess at Any One Time Under This License d

N .D i

b y A. Any byproduct material with w

? A. Any A. Not to exceed 100 3!

? atomic numbers 3 through 83 millicuries per b 51 (

5 radionuclides and 2 curies "l B B. Any byproduct material with total " {

9 B. Sealed sources B. Not to exceed 500 $ll atomic numbers 3 through 83 mil 11 curies per source 5 "l 5 C. Any byproduct material with and 5 curies total "l 5

C. Contamination in various C. I millicurie $l atomic numbers 84 through matrices 9 96 $l 9 D. Hydrogen 3 "l D. Any D. 25 curies ";

5 E Cobalt 60 E. Sealed sources (Gamma E. 50 curies per source and $l 5

5 F. Cobalt 60 Industries Model VD-HP) 460 curies total $

5 F. Sealed source (ICN F. 2 curies ;3!

Model 371) "l 9 G. Barium 133 G. Sealed sources (New G. Not to exceed 100 $l 5 England Nuclear) millicuries per source "l W ,

H. Xenon 133 and 200 millicuries total "l B H. Any H. I curie "

9 I. Cesium 137 I. Sealed source (ORNL Dwg. I. 1,000 curies s; s i No. B-RD-1430) 6, n J. Cesium 137 J. Sealed source (3M J. 2 curies n; 5 Company Model 4F6D) f b K. Plutonium 239 K. Any K. 1 millicurie W;l 9 I.. Americium 241 L. Sealed neutron source L. 5 curies '

j; l (General Nuclear Inc. O ";

I p '

GNI-NB-HP.) "j p M. Americium 241 M. Sealed neutron source M. 4 curies 3; y

p (Monsanto MRC-AmBe-985)

N. Americium 241 N. Electroplated alpha N. Not to exceed 2 $j3;

$ sources millicuries per source p

g "; ,

3L and 6 millicuries total "; '

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L____________________.___._.__.______

am - mmnau - axo===mmaaaaaama ML 10"l e,,.,w . , , .au ,, ,~ .

O NMC Forsn 3MA U.S. NUCLEAR cEGULATORY COMIAISS40N ,4ac 2 or 5 ,,ocs 3

License number MATERIALS LICENSE 8 47 g ,

SUPPLEMENTARY SHEET 070-00048 l Amendment No. 20

0. Americium 241 0. Sealed gamma sources 0. Not to exceed 100 millicuries per source and 200 millicuries total'

~

P. Americium 241 P. Sealed neutron P. 900 millicuries k

. sources r Q. Californium 252 Q. Sealed sources Q. Not to exceed 400 (

(Savannah River Model micrograms per source 1 SR-CF-2000) and 620 micrograms t total R. Depleted Uranium R. Metal R. 2,000 kilograms =

S. Natural and/or depleted S. 200 kiiograms Uranium S.hgna R EG h/  :

yh y[ T.

T. Uranium 235 Any 349 grams [

U. Natural thorium U. Any U. 50 kilogran.s -

V. Uranium 233 V. Any . 5 milligrams  !

W. Uranium 234 W. Any A 5 milligrams i X. Uranium 237 N:ptunium 237 g WX. Any / 7 XF. 50 microcuries  ;

Y.

Z. N:ptunium 239 g h Any pZs'Any

/ ~4 Y.

Z.

100 microcuries i; i.

AA. Plutonium 236 b AA

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Ahy ' ^* 'r, 3 AA.b.1millicurie 75 nanocuries F BB. Plutonium 238 y B.B ' My

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( .J BB. C100 microcuries E CC. Plutonium 239 ,

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CC . Any S-f CC. J00 microcuries  !

DD. Plutonium 240 DDn ny G ,f 'DD. $100 microcuries -

EE. Plutonium 241 ([) EE .' fi l [

y ,Mp& :EE. 100 millicuries E ,

FF. Plutonium 242 ',

FF. r GG. Californium 252 Q DGGd ,

l 4 4 GG.C.4microcuries 10 microcuries i

.d 4WMJf rrk? '. , (c E

9. Authorized use k j ,.c A. through U. Research and Eyelopment as ' efined in 10 CFR({0.4 or 10 CFR 70.4; i instrument calibr^ation. t S. through GG. Fabrication and calibration of in-core ,qeut@ron dosimeters.

Distribution of F manufactured in-core feltmen (esimetersrto persons authorized to receive [

the licensed material purf6antato the terms and conditions of specific t licenses issued by the U.S. Nuclear Regulatory Commission or any Agreement i State.  ;

t CONDITIONS

{

10. A. Licensed material may be used only at the licensee's Science and Technology l Center facilities located at 1310 Beulah Road, Churchill Borough, Pittsburgh, E Pennsylvania, except that -

I B. Up to 50 kilograms of source material,15 grams of Uranium 235, 1.25 millicuries [ l of any byproduct material with atomic numbers 3 through 83, and 2000 kilograms t l of depleted uranium in metal form (flywheel encapsulated in stainless steel) may l be used at temporary job sites of the licensee anywhere in the United States where the U.S. Nuclear Regulatory Commission maintains jurisdiction for [b r

l regulating the use of licensed material. [

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l NRC Form 37tA U.S. NUCLEA2 EEOULATORY COMMt9560N

!.( W I caer 3 or 5 paces I L6 cones number l MATERIALS LICENSE SN 47 SUPPLEMENTARY SHEET 070-00048 Amendment No. 20

11. A. Licensed material shall be used by, or under the supervision of, individuals designated in writing by the Radiation Safety Committee, J.L. Spicher, Chairperson.

B. The Radiation Safety Officer for this license is John R. Lehnhardt.

l l12. In accordance with 10 CFR 30.35(c) and 30.35(e), 10 CFR 40.36(c) and 40.36(d), and 10 CFR 70.25(c) and 70.25(e), the licensee shall submit a decommissioning funding plan to the U.S. Nuclear Regulatory Commission, Region I, 475 Allendale Road, King of Prussia, Pennsylvania 19406 within 90 day qf the date on which this license renewal was issued. @ &G 13.

Licensed material shall nohused in or on human (

14. A. Sealed sources an tector cells containing licensef aterial shall be tested ft for leakage and/on contamination at intervals not to .eed six months or at such other intqpva1 Rassare specified by the certiffbatF of registration  ;

referred to irft) CFR% 40, not to exceed thFe ' ears 6 i B. Notwithstandfrig Paragrah oridi alpha particlqt shall be;;ti thin"leaka for eh d/or contam1J1ation att interv not to exceed >! s r three month,sE ( N A 2 L C. Intheabsend/)of if ' I ~ iip ._ rorytndicatTng that a leak test has been made withi n 1 0

e transfer, a ceivid- ' m ar6 k ' shalp/ritt be p$ aleduse ut into source until or g detector tested. cel1 @p'j -g Q D. Each sealed sourIy, fabricate by(thehMndehshall be nspected and tested for f
  • leakage, and/ contamination pr ,ior to any use or transfer as construction a sealed source.defecty,G

$e E. Sealed sources and detectorhceKs lagedgt be leak tested if:

(i) they contain only hydrogen-3; or

[

(ii) they contain only a radioactive gas; or f C

(iii) the half-life of the isotope is 30 days or less; or (iv) they contain not more than 100 microcuries of beta and/or gamma emitting material or not more than 10 microcuries of alpha emitting material; or [

(

(v) they are not designed to emit alpha particles, are in storage, and are not h being used. However, when they are removed from storage for use or L transfer to another person, and have not been tested within the required t leak test interval, they shall be tested before use or transfer. No sealed L source or detector cell shall be stored for a period of more than 10 years [

without being tested for leakage and/or contamination. t r

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m. . ...;. .. . . . . . . -------------------I

~_______________________________________________________

NRC Form 374A U.S. NUCLEAR C EOULATORY CMSM ,aac 4 or 5 ,, ors j uoense number .

l MATERIALS LJCENSE SNM-47

' SUPPLEMENTARY SHEET """""""""*'

070-00048 Amendment No. 20 F. The test shall be capable of detecting the presence of 0.005 microcurie of radioactive material on the test sample. If the test reveals the presence of 0.005 microcurie or more of removable contamination, a report shall be filed with the U.S. Nuclear Regulatory Commission and the source or detector cell shall be. removed immediately from service and decontaminated, repaired, or disposed of in accordance with Commission regulations. The report shall be i filed within five days of the date the leak test result is known with the  !

l U.S. Nuclear Regulatory Commission, Region I, ATTN: Chief, Nuclear Materials l Safety Branch, 475 Allendale Road, King of Prussia, Pennsylvania 19406. The report shall specify the source or & tutor cell involved, the test results, and '

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corrective action taken.

G. The licensee is authofhd to co' llect leak tes a$nales for analysis by the l  !

licensee. Alterna eTy, tests for leakage and/of pbntamination may be performed by per specifically licensed by the Cogssion or an Agreement State to perform .h services.

W l

15. Sealed sources or de@ttctorte scontaining licens ' /p ~eria14 hall not be opened or sourcesremovedfrgsource er by thglicep g g

! 16. The licensee shallqnot acquife' sed niaterik1 sealed s@rce or device unless thesourceordevdcehasbeenYre. tergdari.th E6. Nuclear Regulatory Commission pursuant to 10 CFR'32.210 sq Mnt , ul pof, abAgre6ent State.

The licensee shall conduE W '

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17. ;tn e tt every 3 mon gs to account for all sealed sources and(fevicePcjo[ hining !1!i physate ' received and possessed under the license. p 3g6 .

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18. A. Detector cells containing a titah shall only be usedej ti kff a properlys m@

scan il oro y'ating r

dium tritide fo temperature control mechanismwhichprev[ conjunction' entsthefoiltemperaturesfqom@exceedingthatspeci l the certificate of registration referred to p 10 CFR 32.210.

' T ys- 4 4 B. When in use, detector cells containThg Ctitanium tritide foil or a scandium tritide foil shall be vented to the outside.

19. The licensee shall not use licensed material in field applications where activity is  ;

l- released except as provided otherwise by specific condition of this license. '

20. 'The licensee is authorized to hold radioactive material with a physical half-life of less than or equal to 120 days for decay-in-storage before disposal in ordinary trash, provided:

A. Waste to be disposed of in this manner shall be held for decay a minimum of ten half-lives.

B. Before disposal as ordinary trash, the waste shall be surveyed at the container surface with the appropriate survey instrument set on its most sensitive scale and with no interposed shielding to determine that its radioactivity cannot be distinguished from background. All radiation labels shall be removed or l

obliterated.

SHIC Form 374A U.S. NUCLEAR EEOULATORY COMMISSION p 811 paae 5 o, 5 enacs h mtser MATERIALS UCENSE b""-47 SUPPLEMENTARY SHEET "

O 00048 Amendment No. 20 C. A record of each such disposal permitted under this License Condition shall be retained for three years. The record must include the date of disposal, the date on which the byproduct material was placed in storage, the radionuclides disposed, the survey instrument used, the background dose rate, the dose rate  :

measured.at the surface of each waste container, and the name of the individual  ;

who performed the disposal. <

21. The licensee is authorized to transport licensed material in accordance with the  !

provisions of 10 CFR Part 71, " Packaging and Transportation of Radioactive Material."

22. Except as specifically provide  ;

isRiE icense, the licensee shall conduct  ;

its program in accordance wi t e@latements@,7 etentations, and procedures contained in the document uding any enclosurehy ted below. The Nuclear Regulatory Commission's ' ations shall govern unless statements, representations, and duresinthelicensee'sapplica@nandcorrespondenceare more restrictive than e regulations.

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A. Letter and app}y{tatiori' January .

B.

Letterdatedghnuary297 97s ,

24,1997~/

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% '/ \ /Mjf g00 4O +o-k f p ,g Y For the U.S. Nuclear Regulatory Commission ORIGINAL SIGNED BY:

Date dW 231998 By JOHN D. KINNEMAN Division of Nuclear Materials Safety Region I King of Prussia, Pennsylvania 19406 q . .. . . .,.. .

. . ,,o. ... ,,.o,, 7

a Weshnghouse ElectricCompany, Energy Systems sax 356 a evision of CBS Corporaton Pittsburgh Pennsylvama 15230 4 356 RA-97-098 December 22,1997 Mr. Hubert J. Miller, Regional Administrator U. S. Nuclear Regulatory Commission, Region 1 475 Allendale Road King of Prussia, PA 19406-1415 Noted Copy: Dr. Carl J. Paperiello, Director Office of Nuclear Material Safety and Safeguards

Subject:

Request For Amendment to Material Licenses listed on attached Exhibit.

References:

1) Westinghouse letter dated August 18,1997 from Charles W. Pryor, Jr. to Mr. Hubert J. Miller, USNRC )
2) Westinghouse letter dated December 18,1997 from A. J. Nardi to Mr. Hubert J. ,

Miller, USNRC

Dear Mr. Miller:

The Westinghouse Electric Company, a division of CBS Corporation, hereby submits this application for a license amendment to the Licenses listed as " Region l Material Licenses" on the attached Exhibit A to change the name of the Licensee from

" Westinghouse Electric Corporation" to " Westinghouse Electric Company, a division of CBS Corporation". No other revisions to the licenses are requested.

On December 1,1997 the Westinghouse Electric Corporation changed it's name to the CBS Corporation. The nuclear businesses of CBS Corporation that operate under the licenses noted above remain intact as a continuing operating division of the re-named corporate entity. These nuclean businesses operate and do business under the name '

" Westinghouse Electric Company, a division of CBS Corporation". The Westinghouse Electric Company division is not separately incorporated. In addition, this corporate name change does not involve any change in the management, organization, location, facilities, equipment, or procedures related to or personnel responsible for the licensed activities of the licenses covered by this request. All existing commitments, obligations, and representations remain in effect.

By Reference Number 1, Westinghouse had previously requested the USNRC to issue license amendments that would reflect a separation of the businesses of the Corporation into a broadcasting group and an Industrial group. That application was formally withdrawn by Reference Number 2 as that transaction will not occur.

124922/ 1~24923/ 124924/ 124925/ 124926/ 124927

.124928/ 124929 DEC 2 91997

l-l l Since the only change involved in this license amendment application is to change the l name of the license holder, no page changes to the various license application documents are being submitted at this time. The appropriate page revisions to the

license application documents will be reflected in future license amendments or license renewal requests as such revisions are made.

l l A check in the amount of $3,620 in payment of the fee specified in 10CFR170.31 I for this license amendment request is being sent under separate cover because of delays due to the holidays in obtaining a check. If you have any questions concerning i

this application, please contact me at the above address or by telephone at l (412) 374-4652.

l Sincerely, p A. J ph ardi, upervisory Engineer Regulatory Affairs Westinghouse Electric Company

Attachment:

Exhibit A i

i I

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1 l

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a WESTINGHOUSE MATERIALS LICENSES, QUALITY ASSURANCE APPROVALS AND CERTIFICATIONS OF COMPLIANCE I

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l l

l EXHIBIT A 4

o_______________ _ _ _ - - )

7.

l EXHIBIT A WESTINGHOUSE MATERIAIR LICENSES. OUAI.ITY ASSURANCE APPROVAIR AND CERTIFICATES OF COMPI I ANCE TABLE OF CONTENTS

!' FACILITY DOCKET LICENSE TYPE OF FEE NUMBER NUMBER LICENSE DOLLARS Region I Materials Licenses Pump Repair Facility 030-06134 37-05809-01 Byproduct Material 580.00 Industrial Radiography Facility 030-06135 37-05809-02 Industrial Radiography 700.00

' Forest Hills Site 030-32414 37-00497-15 Combined Materials 780.00 Former Lamp Manufacturing 040-08976 SMB-1527 Source Material Full Cost Facility Science and Technology Center 070-00048 SNM-47 Broad Scope 780.00 l

Combined Materials Waltz MillSite 070-00698 SNM 770 Broad Scope FullCost Combined Materials Former Plutonium Operations 070-01143 SNM-ll20 SpecialNuclear Full Cost Material Science and Technology Center 070-01503 SNM-1460 Hot CellOperation 780.00 Region i Fixed Fees $3,620.00 Columbia Commercial Fuel Fabrication Feellity 070-01151 SNM 1107 Special Nuclear Full Cost l- Commercial Fuel Fabrication Facility Material Quality Assurance Program Approvals and Cettifiestes ofCompliance Transportation Quality 640.00 Transportation Quality Assurance 71-0638 QAA-0638 Approval Assurance Program Approval- Use Only Revised August 12,1997 Per Revision of Fee Schedules, .

62 Fed. Reg. 29194, May 29,1997 I l

EXHIBIT A WESTINGHOUSE MATERIAIS LICENSES.OUAt>ITY ASSURANCE APPROVAIR AND CERTIFICATES OF COMPI I ANCE TABLE OF CONTENTS DOCKET LICENSE TYPE OF FEE FACILITY NUMBER NUMBEP, LICENSE DOLLARS Quality Assurance Program Approvals and Certificates of Compliance (Cont'd) 71-0708 QAA-0708 Transportation Quality 640.00 Transportation Quality Assurance Assurance Program Approval Approval- Use and i Fabrication 71-6400 COC-6400 Transportation Package Full Cost Super Tiger, Model No. 6400 New Fuel Shipping Container, MCC 71-9239 COC-9239 Transportation Package FullCost Series irradiated Fuel Storage Cask - 72-01001 COC-1001 Irradiated Fuel Storage Full Cost Cask MC-10 Fixed QA & COC Fees $1,280.00 l

l Revised August 12.1997 Per Revision of Fee Schedules.

11 62 Fed. Reg. 29194. May 29,1997 l

L_____________________________

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Westinghouse Energy Systems PO Box 355 Pmsburgh Pennsylvania 15230-0355 Electric Corporation ' Business Unit Charles W Pryor. Jr President 08 August 18,1997 )70 9

Mr. Huben J. Miller Regional Adininistrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 l hoted Copy: Dr. Carl J. Paperiello, Director Office of Nuclear Material Safety and Safeguards Re: Application For Transfer and Amendments of

. Westinghouse Materials Licenses

Dear Mr. Miller:

Westinghouse Electric Corporation, a corporation founded in 1886 under the laws of the Commonwealth of Pennsylvania (" Westinghouse" or " Westinghouse (1886)") hereby requests -

. the transfer and amendment of the 10 CFR Pan 30,40 and 70 materials licenses listed as Region I Materials Licenses on Exhibit A to the enclosed " Application to Transfer and

! Amend Westinghouse Materials Licenses, Quality Assurance Program Approvals, and Cenificates of Compliance," dated August 15, 1997. Following the transfers and amendments, the name of the holder of the materials licenses will be Westinghouse Electric l Corporation, a corporation incorporated in 1997 under the laws of the Commonwealth of Pennsylvania ("WELCO or " Westinghouse (1997)").

The proposed materials license transfers and amendments are requested as pan of a pending series of transactions in which _ Westinghouse (1886) will transfer all assets and operations relating to certain of its industrial businesses to WELCO. The proposed transfers and.

amendments would change the licenses to reflect these transactions by substituting l

- Westinghouse (1997) in place of Westinghouse (1886) as the holder of the licenses.= The

- proposed transfers will not involve any change in the_ organization, location, facilities, equipment or procedures related to_or personnel responsible for the licensed operations.

WELCO will be technically and financially qualified to be the holder of the licenses, and

- agrees to abide by all commitments and representations made to the NRC prior to the transfer by Westinghouse (1886), as well as all of the terms and conditions of the licenses

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  • 124928 0FFl0ERECORD00PY AUG l9 S W E '

___________._1._________.

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N i

i Mr. Hubert J. Miller August 18,1997

)

Page -2 '

and cenifications. On the closing date of the transactions, Westinghouse (1886) will change

. its name to CBS Corporation.

The proposed transactions involve the approval of other regulatory agencies in addition to the-NRC Closing of the transactions will require various regulatory approvals. Therefore, Westinghouse (1886) requests the NRC to make the transfers and amendments effective on the closing date of the transactions. While ti.e_ closing date has not yet been determined, we currently expect the closing to take place in the founh quarter of 1997. Westinghouse (1886) will keep the NRC informed of progress in obtaining other regulatory approvals, the closing date established for the transactions, and the closing of the transactions.

Westinghouse (1886) funher requests that all of its applications for materials licenses or other approvals pursuant to 10 CFR Parts 30,'40 and 70 be deemed to be the applications of

.WELCO and that the name of the applicant be changed to Westinghouse Electric Corporation (the.1997 company) in such applications as of the closing date of the transactions.

Enclosed is a check in the amount of $3,620.00 in payment of fees for processing the required amendments to the affected licenses which are not subject to full cost review (see Exhibit A), as set fonh in 10 CFR Part 170. For amendments which are subject to full cost of the review, Westinghouse will pay the fees upon billing by the NRC in accordance with the provisions of 10 CFR Section 170.12.

Should you have any questions regarding this matter, please contact Mr. A. Joseph Nardi, License Administrator, Regulatory Affairs, Energy Systems Business Unit, Telephone: (412)

- 374-4652, Fax: (412) 374-3357, E-Mail: nardiaj@ westinghouse.com.

Very tmly ours,

)

N wehr Charles W. Pryor, Jr.

[

' Enclosure s

__2_ A_ - - -_

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, v.

APPL: CATION TO TRANSFER AND AMEND WESTINGHOUSE MATERIALS LICENSES, QUALITY ASSURANCE PROGRAM APPROVALS, AND CERTIFICATES OF COMPLIANCE August 18,1997 INTRODUCTION i

Westinghouse Electric Corporation, a corporation founded in 1886 under the laws of the Commonwealth of Pennsylvania (" Westinghouse" or " Westinghouse (1886)") is the holder of the 10 CFR Pans 30,40,70,71 and 72 licenses, quality assurance program approvals, and 1

certificates of compliance (the " licenses, approvals and certificates") set forth in Exhibit A hereto. Westinghouse (1886) requests that the Nuclear Regulatory Commission ("NRC")

f l approve the transfer from Westinghouse (1886) to Westinghouse Electric Corporation, a corporation incorporated in 1997 as Westinghouse Power Company under the laws of the Commonwealth of Pennsylvania ("WELCO" or " Westinghouse (1997)") of the licenses, approvals, and certificates listed in Exhibit A; and that the NRC approve the corresponding amendments to those licenses, approvals, and certificates necessary to effectuate such transfer.

- WELCO was incorporated on July 17,1997 as Westinghouse Power Company, was renamed Westinghouse Electric Company on August 13,1997 and will be renamed Westinghouse Electric Corporation (the 1997 company) on the closing date of the transactions, described below, that give rise to this application for transfer and amendment of I: ilicenses, approvals and certificates. Following the transfers and amendments, the name of the holder of the licenses, approvals and certificates will be Westinghouse Electric Corporation

- (the 1997 company).

l

.l J

s.

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L - Westinghouse (1886) fmther requests that all of its applications for materials licenses, certificates or other approvals pursuant to 10 CFR Parts 30,40,70,71 and 72 be deemed to be the applications of WELCO and that the name of the applicant be changed to Westinghouse Electric Corporation (the 1997 company) in such applications as of the closing l date.

The requested transfers and amendments are part of an overall series of pending transactions in which Westinghouse (1886) will transfer all assets . nd operations relating to the Westinghouse industrial businesses, with the exception of its mobile transport refrigeration equipment business and certain other designated businesses, to WELCO. Westinghouse (the 1997 company) will be a separate publicly traded company from and after the closing date of the transactions. Included in the industrial businesses and assets to be transferred are all of the Westinghouse nuclear related businesses for which NRC or Agreement State licenses, approvals or certificates are requimJ, with the exception of a Westinghouse subsidiary, Bay County Energy Systems, Inc., which manages the operation of the Bay County Resource l

Recovery Facility and which holds an Agreement State radioactive materials license (sealed source) issued by the State of Florida. Westinghouse (1886) will continue to own its media operations (including the production, distribution and transmission of radio and television programming) and those industrial businesses which are not being transferred to WELCO. On the closing date of the transactions, Westinghouse Electric Corporation (the 1886 company) will change its name to CBS Corporation.

i The proposed transactions involve the approval of other regulatory agencies in addition to the NRC. Closing of the transactions will require various regulatory approvals. Therefore, 2-

u y Westinghouse (1886) requests the NRC to make the transfers and amendments effective on the closing date of the transactions. Westinghouse (1886) will keep the NRC informed of progress in obtaining other regulatory approvals, the closing date established for the transactions, and the closing of the transactions.

WELCO will be financially and technically qualified to hold the licenses, approvals, and cenificates which are the subject of this application for transfers and amendments. In connection with the pending transactions, current Westinghouse employees responsible for the licensed activities to be transferred will become WELCO employees and will continue to be responsible after the transfers'to WELCO. Transfer of these licensed activities will not affect the organizational stnicture described in the licenses. There will be no changes in organizations, locations, facilities, equipment or procedures and there will be no changes in the use, possession, locations or storage of licensed materials. Licensed activities will continue in their current form without interruption of any kind resulting from the transfers.

Set forth below is information in response to NRC regulations and Information Notice 89-25, Rev.1, dated December 7,1994, to support the transfers and amendments of the

licenses, approvals and certificates.

INFORMATION FOR TRANSFER OF LICENSES. APPROVALS AND CERTIFICATES

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A'. Name of Transferee:

Westinghouse Electric Corporation (the 1997 company)

B. The Address Will Be:

' Westinghouse Electric Corporation 11 Stanwix Street Pittsburgh, PA 15222-1384

- . - - _ _ . _ _ _ . . _ - _ _ _ _ _ _ _ . . _ _ _ _ _ . . - - - _ _ h

s, s C. Oronni7ation and Manmoement Westinghouse (1997) will be a separate publicly traded corporation, organized and incorporated on July 17,1997 as Westinghouse Power Company under the laws of the Commonwealth of Pennsylvania. The name of Westinghouse Power Company was changed to Westinghouse Electric Company on August 13, 1997. Westinghouse Electric Company will be renamed Westinghouse Electric Corporation (the 1997 company) on the closing date.

All of the current directors and principal officers are citizens of the United States. Their names and addresses are as follows:

Directors Name Address Michael H. Jordan 160 W. 66th St., #47B Non-Executive Chairman New York, NY 10023 Dr. Ernest H. Drew 2029 Las Tunas Road Santa Barbara, CA 93103 Gary M. Clark 2126 Blairmont Drive Pittsburgh, PA 15241 Joseph T. Doyle 108 Riding Trail Lane Pittsburgh, PA 15215 Principal Officers Name Addres:

Dr. Ernest H. Drew 2029 Las Tunas Road President and Chief Executive Officer Santa Barbara, CA 93103 l

Gary M. Clark 2126 Blairmont Drive Vice President and Secretary Pittsburgh, PA 15241 Joseph T. Doyle 108 Riding Trail Lane Senior Vice President and Pittsburgh, PA 15215 Chief Financial Officer l

F.

E, The names and addresses of the directors and principal officers of WELCO on the closing date will be as follows:

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Directors Name Address Michael H. Jordan 160 W. 66th St., #47B Non-Executive Chairman New York, NY 10023 i

Dr. Ernest H. Drew 2029 Las Tunas Road Santa Barbara, CA 93103 Gary M. Clark 2126 Blairmont Drive Pittsburgh, PA 15241

, Robert D. Cawthorn 50 Crosby Brown Road l Gladwyne, PA 19035 David K. P. Li Penthouse, Flat A, Tower 2 Dynasty Court,23 Old Peak Road l

Hong Kong l

'/ rank C. Carlucci 1207 Crest Lane McLane, VA 22101 David T. McLaughlin 442 Ferry Point Road Annapolis, MD 21403 i

Richard R. Pivirotto 111 Clapboard Ridge Road

! Greenwich, CT 06830 L

l- Princioal Officers Mamt Address Dr. Ernest H. Drew 2029 Las Tunas Road President and Chief Executive Officer Santa Barbara, CA 93103 Joseph T. Doyle 108 Riding Trail Lane Senior Vice President and Pittsburgh, PA 15215 Chief Financial Officer l- '

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[* ..,- n James L. Gallagher 8 Twin Stream Drive ,

President, Westinghouse Government Pittsburgh, PA 15238 and Environmental Services Company Charles W. Pryor, Jr. 413 Landon Knoll President, Energy Systems - Pittsburgh, PA 15238 l

r Randy H. Zwirn 1905 Wingfield Drive L President, Power Generation Longwood, FL 32779 With the exception of Messrs. Cawthorn and Li, who are citizens of the United Kingdom, all of the directors and principal officers of WELCO are citizens of the United States. WELCO L .will not be owned, controlled or dominated by an alien, foreign corporation or foreign government and will not be acting as an agent or representative of any other person.

I D. Description of Businesses to be Transferred to WELCO p

The Westinghouse industrial businesses to be transferred to WELCO supply services, fuel and equipment for the nuclear energy market, services and equipment for the power generation market and management and related operating services at government-owned facilities.

l Enerev Systems. Westinghouse's Energy Systems Business Unit (" Energy Systems"), with 6,849 full time employees as of January 1,1997, provides support products and services to the nuclear utility industry, including nuclear fuel, operating, maintenance and L engineering services,'and repair and replacement equipment, parts and components. Energy Systems also designs, builds, upgrades, modernizes and decommission nuclear power plants.

.It is currently designing and engineering a next generation passive light water reactor known as the AP600. Through its Process Control Division, Energy Systems designs and sells distributed control, communication, data acquisition and information systems to power s

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generation facilities (fossil and nuclear fueled). In addition, through its Electromechanical Division, Energy Systems designs and manufactures naval propulsion equipment, motors and pumps for the U.S. Navy. In 1996, Energy Systems had sales of approximately $1.234 billion and approximately $2.626 billion in backlog of unfilled orders at the end of the year.

Power Generation. Westinghouse's Power Generation Business Unit (" Power Generation"), with 8,343 full time employees as of January 1,1997, designs, manufactures, l installs and services steam turbine-generators for nuclear and fossil-fueled power plants and l

l combustion turbine-generators for natural gas and oil-fired power plants. Power Generation i

also constructs turnkey power plants worldwide. In addition to serving the' electric utility industry, Power Generation supplies power generation equipment to independent power

producers and supplies power generation equipment and services to other non-utility customers. Power Generation also provides extensive support in the areas of power plant operation, maintenece and services, including modernization and upgrade, installation services, electrical systems services and equipment repair. In 1996, Power Generation had

[ sales of approximately $2.172 billion and approximately $2.788 billion in backlog of unfilled orders at the end of the year.

Government Operations. Westinghouse, through various divisions and subsidiaries (collectively, "Govemment Operations"), manages government sites where

approximately 16,825 people were employed as of January 1,1997. Government Operations supports the U.S. Navy's nuclear propulsion program and manages the operation of nuclear- )

related facilities for the U.S. Department of Energy (" DOE") and the U.S. Department of Defense.("DOD"), including, among others, (i) the Savannah River Site in South Carolina 7

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.. .s (since 1989), (ii) the West Valley Demonstration Project in West Valley, New York (since 1971) and (iii) tne Waste Isolation Pilet Plant near Carlsbad, New Mexico (since 1985). In addition, Safe Sites of Colorado, LLC, an entity in which Government Operations owns a 65% interest, performs environmental cleanup and nuclear waste management services und:r a subcontract at the DOE Rocky Flats facility. The principal mission of these facilities is the remediation, waste management and safe management of the U.S. nuclear materials inventory.

Government Operations'. work for the U.S. Navy includes new ship reactor plants and advanced designs, training and fleet support. Government Operations provides nuclear and 1

technical support services to the government-funded U.S. naval nuclear reactors programs through the Bettis Atomic Power Laboratory, the Plant Apparatus Division and the Machinery Apparatus Operation Division. Government Operations also provides canisters to store fissile material, chemical agents and spent nuclear fuel and the transportation and storage of Russian nuclear weapons components. Government Operations is a principal DOE subcontractor to design multi-purpose canisters for the transportation, storage and repository emplacement of spent commercial nuclear fuel.

Coroorate Functions.

l Certain functions primarily related to Westinghouse corporate operations also will be transferred to WELCO. Included in these functions are administrative functions at the Corporate Headquarters in Pittsburgh, Pennsylvania; research, development, and testing functions at the Science and Technology Center in Churchill, Pennsylvania; and business computing and tele-communications functions at the Corporate Tele-Computer Center in

- Forest Hills, Pennsylvania.

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E. Information ed-I ner NRC Information Notice 89-25. Revision 1.

Attachment l'

l. The new name of the licensed organization.

Westinghouse Electric Corporation (the 1997 cornpany) (as of the closing date).

2. The new licensee contact and telephone number (s) tofacilitate communications.

e The continuing contact for the licenses is:

Mr. A. Joseph Nardi, License Administrator Regulatory Affairs Energy Systems Business Unit Telephone: (412) 374-4652 Fax: (412) 374-3357 E-Mail: nardiaj@ westinghouse.com

3. Any changes in personnel having control oflicensed activities (e.g., officers of a corporation) and any changes in personnel named in the license such as radiation safety of]Icer, authorized users, or any other persons identified in previous license applications as responsiblefor radiation safety or use oflicensed material. The licensee should include information concerning the quahfications, training, and responsibilities ofnew individuals.

There will be no changes in personnel having control of licensed activities, except that the principal officers of WELCO noted in Section "C" above will take the place of the current principal officers of Westinghouse. - There will be no changes in L personnel named in the licenses as responsible for radiation safety or use of licensed material as a result of the transfers.

Information requested in the Information Notice is quoted in italics.

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4. An indication of whether the transferor will remain in non-licensed

' business without the license.

The transferor, Westinghouse Electric Corporation (the 1886 company) will be renamed CBS Corporation and will remain in businesses that are not related to NRC licensed activities after the closing date, with one exception. A Westinghouse subsidiary, Bay County Energy Systems, Inc., will not be transferred to WELCO and will continue to hold an Agreement State radioactive materials license (sealed source) issued by the State of Florida.

Bay County Energy Systems, Inc. manages the operations of the Bay County, Florida Resource Recovery Facility.

5. A complete, clear description of the transaction, including any transfer ofstock or assets, mergers, etc., so that legal counsel is able, when necessary to differentiate between name changes and changes ofownership.

l On the closing date, Westinghouse (1886) will be transferring all of the assets and operations of its industrial businesses, other than its mobile transport refrigeration equipment business and certain other designated businesses, tc, WELCO. -WELCO is currently a wholly-owned subsidiary of Westinghouse (1886). Immediately upon the transfer,

! Westinghouse (1886) will make a pro rata dividend distribution of all of the outstanding -

common stock of WELCO to Westinghouse (1886) shareholders of record as of a record date to be determined. Concurrently with the distribution, Westinghouse (1886) will change its ,

l name to CBS Corporation and WELCO will change its name to Westinghouse (the 1997 company). (See pro forma financial statements of WELCO attached as Exhibit B).  ;

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6. A complete description of anyplanned changes in organi:ation, location facility, equipment, or procedures (i.e. changes in operating or emergency procedures).

Transfer of the licensed activities will not affect the structure of the organization as described in the licenses. There will be no changes in organization, location, facilities, equipment or procedures as a result of the transfer. 1 i

7. A detailed description of any changes in the use, possession, location or storage of the licensed material.

There will be no changes in the use, possession, location or storage of the licensed material as a result of the transfer.

8. Any changes in organization, location, facilities, equipment, procedures or personnel that would require a license amendment even without the change of ownership.

See response to numbers 3 and 6 above.

9. An indication of whether all surveillance items and records (e.g., l calibrations, leak tests, surveys, inventories, and accountability requirements) will be current at the time of transfer. A description of the status of all surveillance requirements and records should also be provided.

All licensed activities will continue on an ongoing basis without interruption. All surveillance items and records will continue to be maintained in accordance with applicable regulations and license requirements.

10. Confirmation that all records concerning the safe and effective l decommissioning of thefacility pursuant to 10 CFR 30.35(g), 40.36(f), 70.25(g) and 72.30(d);

public dose; and waste disposal by release to sewers, incineration, radioactive material spills, l

l __

L ____________1___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ . _

4 and on-site burials, have been transferred to the new licensee, iflicensed activities will continue at the same location, or to the NRCfor license termination.

'As part of the transfer of assets from Westinghouse (1886) to WELCO, all such records will be transferred to WELCO on the closing date. Such transfer will not involve any physical relocation of any records.

11. A description of the status of thefacility. Specifically, the presence or absence ofcontamination should be documented. Ifcontamination is present, will decontamination occur before transfer? Ifnot, does the successor company agree to assume full liabilityfor [ decommissioning and the costs of decommissioning?]

On the closing date, the status of the licensed facilities, including but not limited to the status of decommissioning activities, will be identical to their status prior to the closing date. From and after the closing date, WELCO will assume full liability for decommissioning and the costs of decommissioning of the facilities being transferred to WELCO.

12. ~A description of any decontamination plans, includingfinancial assurance arrangements of the transferee, as specified in 10 CFR 30.35, 40.36 and 70.25.

This should include information about how the transferee and transferor propose to divide the transferor's assets, and responsibilityfor any cleanup needed at the time of transfer.

From and after the closing date, WELCO will assume full responsibility for the current status and future cleanup of all licensed facilities and will have in place the financial assurance mechanism necessary to comply with the regulations specified in.10 CFR 30.35,~40.36 and 70.25. Currently, Westinghouse (1886) has established a single form of financial assurance mechanism that encompasses all Westinghouse facilities that hold NRC 2

L___=___-_ _-. . ._-

I licenses and are required to provide such financial assurance. That mechanism consists of a

! ' Standby Trust Agreement and associated Standby Letters of Credit. Westinghouse (1886) recently updated its certification of decommissioning financial assurance: (1) by a filing dated March 22,1996, Ref. RA %-025 AJN, which was accepted by the NRC by letter dated March 291996; and (2) by a filing dated March 6,1997, Ref. RA-97-031, which was accepted by the NRC by letter dated April 23,1997. These current decommissioning

. financial assurance documents and NRC approval letters are attached as Exhibit C hereto.

By no later than the closing date, WELCO will have in place financial assurance arrangements for decommissioning through a Standby Trust Agreement and associated Standby Letters of Credit, in the form attached as Exhibit D hereto, and in the amount necessary to maintain compliance with all regulatory requirements. The documents contained in Exhibit D are in the form currently approved by the NRC. Westinghouse (1886) u'nderstands that to obtain NRC approval of the transfers as of the closing date, the Standby Trust Agreement and associated Letters of Credit must be in place and. effective as of that date. Copies of executed financial instruments will be transmitted by Westinghouse (1886) to the NRC for acceptance as soon as they have been executed.

l

13. Confirmation that the transferee agrees to abide by all commitments and j representations previously made to NRC by the transferor. These include, but are not limited to: maintaining decommissioning records required by 10 CFR 30.35(g); implementing J decontamination activities and decommissioning of the site; and completing corrective actions l ;for open inspection items and enforcement actions.

l

. With regard to contamination offacilities and equipment, the transferee should confirm, in writing, that it acceptsfull liabilityfor the site, and should provide

. evidence of adequate resources tofund decommissioning; or the transferor shouldprovide a commitment to decontaminate thefacility before change of control or ownership.

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1 With regard to open inspection items, etc., the transferee should confirm, in writing, that it acceptsfull responsibilityfor open inspection items and/or any resulting enforcement actions; or the transferee proposes alternative measuresfor meeting the requirements; or the transferor provides a commitment to close out all such actions with NRC before license transfer.

Exhibit E is a letter confirming that WELCO agrees to abide by all commitments and representations previously made to the NRC by Westinghouse (1886) for all facilities being transferred. The letter also confirms that WELCO agrees to accept full liability for decommissioning and decontamination of such facilities and sites and full responsibility for open inspection items and/or resulting enforcement actions upon the transfers of the licenses. This commitment includes acceptance of commitments,. l responsibilities and liabilities for the Westinghouse Specialty Metals Plant site located near Blairsville, Pennsylvania.  !

14. Documentation that the transferor and transferee agree to the change in

- ownership or control of the lichnsed material and activity, and the conditions of transfer; and the transferee is made aware of all open inspection items and its responsibilityfor possible resulting enforcement actions.

Exhibit F is a Memorandum of Understanding ("MOU") between j Westinghouse (1886) and WELCO documenting agreement to the change in ownership and control of the licensed material and activities and the conditions of transfer associated with the facilities being transferred. The MOU also documents that WELCO has been made aware of open inspection items related to the licensed material and activities as of the date of the MOU and the responsibility of WELCO for possible resulting enforcement actions upon the transfers of the licenses. Pursuant to the MOU, WELCO will be made aware of all open inspection i L_ _____ ___ _ __ _ _ ___ _ __ ___ _____ _______._____ _ _ ____ _ _____ _ _____ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

eg  %

i I items as of the closing date of the transactions and its responsibility for possible resulting l

- enforcement actions.

l i

l 15 A commitment by the transferee to abide by all constraints, conditions, requirements, representations and commitments identified in the existing license. If not the

( transferee must provide a description ofits program, to ensure compliance with the license l and regulations. t l

l Exhibit E is a letter confirming that WELCO agrees to abide by all constraints, conditions, requirements, representations and commitments identified in the 1

L existing licenses, approvals and certificates.

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. CONCLUSION l

- For the reasons stated above, Westinghouse Electric Corporation (the 1886 company) reque'sts that the NRC approve the transfer of the licenses, approvals and certificates listed in i l.

Exhibit A and that the NRC approve the corresponding amendments to those licenses, '

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approvals and cenificates to change the name of the holder of such licenses, approvals and l certificates to Westinghouse Electric Corporation (the 1997 company), effective as of the date l . of closing of the transactions referenced above.

WESTI G CUSE ELE C CORPORATION i

By: 4,fu LN w d W u

[

Charles W. Pryor, Jr. / ' '

! President, Energy Systems Business Unit i

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i AFFIRMATION )

I, Charles W. Pryor, Jr., do hereby affirm that: (1) I am President of the Energy Systems Business Unit of Westinghouse Electric Corporation, (2) I am duly authorized to execute and file this cenification on behalf of Westinghouse Electric Corporation, and (3) the l statements set forth in the attached application are true and correct to the best of my j information, knowledge and belief.

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> h MNGl Ch'arles W. Pryor, Jr. l  !

COMMONWEALTH OF PENNSYLVANIA  :

TO WIT:

COUNTY OF AL.LEGHENY  :

I hereby certify that on the 18th day of August,1997, before me, the subscriber, a Notary Public of the Commonwealth of Pennsylvania, personally appeared Charles W. Pryor, Jr., .

being duly sworn, and states that he is President of the Energy Systems Business Unit of the l Westinghouse Electric Corporation; that he provides the foregoing application for the purposes l therein set fonh; that the statements made are true and correct to the best of his knowledge, information, and belief; and that he was authorized to provide the application on behalf of said Corporation.

WITNESS my Hand and Notarial Seal: b#h- '

fotary Public My Commission Expires: R,/99f Notarial Seal Yvonne N. Thompson, Notary M Commess6o Expr k. 2. 9

, Meneer,,%. _f mAssoongon at Nasenes l J

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APPLICATION TO TRANSFER AND AMEND WESTINGHOUSE MATERIALS LICENSE, QUALITY ASSURANCE PROGRAM APPROVALS, AND CERTIFICATES OF COMPLIANCE INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION A Westinghouse Materials Licenses. Quality Assurance Approvals and Certifications of Compliance B Pro Forma Financial Statements of WELCO C Existing Westinghouse Financial Assurance Documents for Decommissioning D Form of WELCO Financial Assurance Documents for Decommissioning E letter of Westinghouse Electric Company Confirming Agreement to Assume Commitments Responsibilities and Liabilities -

F Westinghouse Electric Corporation and Westinghouse Electric Company Memorandum of Understanding Regarding Transfers and l

Amendments, Responsibilities and Liabilities 1

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a__ _ _ _ _ _ - _ _ _ . _ _ .

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i WESTINGHOUSE MATERIALS LICENSES, QUALITY ASSURANCE l APPROVALS AND CERTIFICATIONS OF COMPLIANCE l

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EXHIBIT A

! WESTINGHOUSE MATERIAIS LICENSES. OUAI ITY ASSURANCE APPROVAIS AND CERTIFICATES OF COMPLI ANCE TABLE OF CONTENTS FACILITY DOCKET LICENSE TYPE OF FEE NUMBER NUMBER LICENSE DOLLARS Region I Materials Licenses Pump Repair Facility 030-06134 37-05809-01 Byproduct Material 580.00 Industrial Radiography Facility 030-06135 37-05809-02 Industrial Radiography 700.00 Forest Hills Site 030-32414 37-00497 15 Combined Materials 780.00 l

Former Lamp Manufacturing 040-08976 SMB 1527 Source Material Full Cost Facility Science and Technology Center 070-00048 SNM-47 Broad Scope 780.00 Combined Materials Waltz Mill Site 070-0 % 98 SNM 770 Broad Scope Full Cost !

Combined Materials i

Former Plutonium Operations 070-01143 SNM-1120 Special Nuclear Full Cost ,

l Material )I Science and Technology Center 070-01503 SNM-1460 Hot CellOperation 780.00 Region I Fixed Fees $3,620.00 i

Columbia Commercial Fuel Fabrication Facility -

Commercial Fuel Fabrication 070-01151 SNM-1107 Special Nuclear Full Cost ;

j Facility Material l

Quality Assurance Program Approvals and Certificates ofCompliance Transportation Quality Assurance 71-0638 QAA-0638 Transportation Quality 640.00 Approval Assurance Program Approval- Use Only i I

f Revised August 12,1997 l Per Revision of Foc Schedules, .

i 62 Fed. Reg. 29194, May 29,1997 1 1

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EXHIBIT A MTSTINGHOUSE I

MATERIAI.R LICENSES. OUAI.ITY ASSURANCE APPROVAI.R AND CERTIFICATES OF COMPI.I ANCE TABLE OF CONTENTS 4

FACIL11Y DOCKET LICENSE TYPE OF FEE NUMBER NUMBER LICENSE DOLLARS Quality Assurance Program Approvals and Certifiestes of Compliance (Cont'd)

Transportation Quality Assurance 71-0708 QAA-0708 Transportation Quality 640.00 Approval Assurance Program Approval- Use and Fabrication Super Tiger, Model No. 6400 71-6400 COC-6400 Transportation Package Full Cost New Fuel Shipping Container, MCC 71-9239 COC-9239 Transportation Package Full Cost Series i irradiated Fuel Storage Cask - 72-01001 COC-1001 Irradiated Fuel Storage Full Cost MC-10 Cask i

Fixed QA & COC Fees $1,280.00 l

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Revised August 12,1997 Per Revision of Fce Schedules. ..

62 Fed. Reg. 29194, May 29,1997 11 w___-___-__________________________-___.

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i PRO FORMA FINANCIAL STATEMENTS OF WELCO (Excerpted from Form 10 " General Form of Registration of Securities", filed by Westinghouse Electric Company. with the U.S. Securities and Exchange Commission on May 13, 1997)

' EXHIBIT B 277918.1.8/14/97 (9.45pm) l L______.________________.__.____________ _ _ _ _.____...___.__m _ . _ . . _ _ _ _ _ . _ . _ _ _ _ .

o EXHIBIT B Summary Historical Combined Financial Data The summary historical combined Snancial data at March 31. 1997 and for the three months ended March 31.1997 and March 31. 1996 presented below have been derived from and should be read in conjunction with the unaudited condensed combined fmancial statements included elsewhere in this Informa-tion Statement. The unaudited interim data renects in the opinion of the Company's management all adjustments considered necessary for a fair presentation of results of such interim period. Results for unaudited interim periods are not necessarily indicative of results which may be expected for any other interim or annual penod. The summary historical combined fmancial data at December 31.1996 and 1995 and for each of the years in the three year period ended December 31,1996 presented below have been derived from and should be read in conjunction with the audited combined fmancial statements and notes thereto of the Company included elsewhere in this information Statement. The summary historical combined fmancial data at December 31.1994,1993 and 1992 and for each of the years in the two year period ended December 31.

1993, have been derived from unaudited combined financial statements of the Company.

Three Meaths Ended March 31 Year Ended December 31 1997 IM6 IM6 1995 1994 IM3 IM2 (meaudited) (in millions)

Statem:r.t of Income Data:

Sales of products and services . . . . . . . . 5 650 $ 670 5 3.467 53.434 53.530 $3.775 53.832 Restructuring. litigation and other matters. . -

(578) (888) (294) (21) (378) -

Operatmg pro 6t (loss) . . . . .. . .. (123) (679) (890) (280) 71 (159) 284 Other income and expenses, net .. . (6) (151) (140) (13) (155) (116) (23)

Income (loss) before income taxes and minonty interest .. .. .... . (129) (831) (1.031) (295) (92) (284) 249 Income tax bene 6t (expense) . ... . 49 299 370 97 19 16 (108)

Cumulatise effect of changes in accounting pnnciples . .. . . ,. . . . - - - - -

(52) -

Net meome (loss). . . .. ... (80) (533) (f65) (202) (77) (324) 136 At Decester 31 At March 31.1997 1996 1996 1994 1883 1992 (uneudited) (in anillions)

Balance Sheet Data:

Total assets . .. . 54.535 54.541 53.843 $3.801 53.574 $3.157 Total debt. .. . .. . 5 6 9 12 21 7 Shareholder's equity . l.417 1.109 1.541 1.722 1.343 1.460 8

Page 1 of 6 L___________-_________________--______-_________-_-__ _ _ . . _ . _ _ _ _ .

EXHIBIT B Summary Unsudited Pro Forma Combined Financial Data The following summary unaudited pro forma combined financial data are deriveo from the unaudited pro forma combined financial statements included elsewhere in this Information Statement and should be read in conjunction therewith and with the related notes thereto. These summary unaudited pro forma combined fmancial data were prepared by the Company to illustrate the estimated effects of the Distribution desenbed in the notes to the pro forma combined financial statements as if they had occurred as of January 1.1996 with respect to the statement of income data and at March 31.1997 with respect to the balance sheet data.

These summary unaudited pro forma combined financial data are presented for illustrative purposes only ac.d are not necessarily indicative of the operating results or fmancial position of the Company had the Distribution occurred as of the dates indicated or of the results that may be obtained in the future. See "Unaudited Pro Forma Combined Financial Statements."

Three Months Ended Year Ended March 3t.1997 December 31.19%

(in millions, escept per share data)

Pro Forma Combined Statement of Income Data:

Sales of products and services . . .. . ... .... .. $650 $3.467 Restructuring. litigation and other matters. . . . . . . . -

(888)

Operating loss . . ... . . .. . . . . .. (98) (790)

Other income and expenses, net . . .. .. ... . .. (6) (140)

Interest expense. . . . .. .. .. ... . ... .. (5) (21)

Loss before income taxes and minority interests . ... .. . . (109) (951) income tax expense . . . . . . . . ... .. . . . . (9) (40)

Net loss . .... . . . . .. . ... .... (118) (995) l Loss per common share (l) . . . . . ...... .. . ... . $

_ L As March 31.1**1 tin milleons)

Pro Forma Combined Balance Sheet Data:

Total assets. .... . . . ......... .. .. ..... . $3.800 5

Total debt . . . .. .. . .. ... . .... ... .. ..

Shareholder's equity .. . . .. ..... . .... .... . . . . ..... 682 (l) Pro forma loss per share has been calculated assuming shares of Company Common Stock were outstanding. This is based on the number of outstanding shares of Westinghouse Common Stock at the close of business on the Distribution Record Date and the Distribution Ratio.

1 I

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Page 2 of 6

g ., EXHIBIT B j I

UNAUDITED PRO FORMA COMBLNED FINANCIAL INFORMATION The following pro forma combined financial statements of the Company for the year ended December 31.

1996 and as of and for the three months ended March 31,1997 were prepared by the Company to illustrate the estimated effects of the Distribution as described in the netes to pro forma combined financial statements as if they had occurred as of January 1,1996 for purposes of the pro forma combined statements ofincome and at March 31,1997 for' purposes of the pro forma combined balance sheet. The Pro Forma Combined Financial Statements do not purport to represent what the results of operations or financial position of the Company would actually have been if the Distribution had in fact occurred on such dates or to project the results of operations or finan:.ial position of the Company for any future period or date. The Pro Forma Combined Financial Statements should be read together with the Combined Financial Statements of the Company and

" Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this Information Statement.

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F.37 Page 3 of 6

l EXHIBIT B l

WESTINGHOUSE ELECTRIC COMPANY i

UNAUDITED PRO FORMA COMBINED BALANCE SHEET At March 31,1997 l

l Pro Forms l

' Historical Mjustments Pro Forme (in millions)

ASSETS:

Cash and cash equivalents . . . .. . . . . . . 5 47 5 5 47 611 611 Customer receivables . . . . . .. ....... .

Inventories . . . . .. .. . . . . . . . 691 691 Uncompleted contracts costs over related billings. . . .. 661 661 Deferred income taxes . . . . . .... . ... . 362 (35)(1) 127 (200)(2)

Prepaid and other current assets . . . . . . . . . .. .. 90 82 (1) 172 Total current assets. . . . .... . . .. .... . .. . 2.462 (153) 2.309 Plant and equipment. net . . . . . . . .. ....... .... ... 733 733 Deferred income taxes, noncurrent . ......... .. . .. 79? (600)(2) 191 Intangible and noncurrent usets. . . . ............... 549 18 (1) 567 Total assets ... ....... .. ..... .. .... .. .. . 54.535 5(735) 53.800 LIABILITIES AND SHAREHOLDER'S EQUITY:

Accounts payable .. ... .. .. .. ... .. .. . 363 363 Uncompleted contracts billings over related costs. . . . . . . . 407 407 876 876 Other current liabilities . . . . . . . ... . .. . . . .

Total current liabilities . . . . . . . . .. . 1.646 1.646 Settlements and accrued liabilities . . . . . . . . 940 940 298 298 Environmental liabilities. . . . ... .. .... .

227 227 Other noncurrent liabilities ........... .. ....... ..

3.111 3.111 l- Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . ....

7 7 Minority interest in equity of subsidiaries . . . . . . . . . . . . . .

Shareholder's equity:

Cumulative foreign currency translation adjustments . . . . . (7) (7)

Invested equity . . . . . . . . . . . . . . .. . ..... . ... 1.424 65 (1) 689 (800)(2) 1.417 (735) 682 Total shareholder's equiry . . . . . . . . . . . . . . . . . . . . . .

Total liabilities and shareholder's equity . . . . . . . . . . . . . . . 54.535-- 3) 5 53.800 1

i L

See Notes to Unasdited Pro Forma ComNned Financial Statements.

F.38 l

l*? age 4 of 6 I i

E___________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _

l l EXHIBIT B i WESTINGHOUSE ELECTRIC COMPANY UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME For the Three Months Ended March 31,1997 l

Pro Forma Historical Adjestroents Pro Fonne (in millions, escept per share data)

Sales of services and products . . . . . .. .. 5 650 5 5 650 Costs of services and products .. .. . ...... . . (619) 21 (3) ($98)

Restructuring. litigation and other matters . . .. -

Marketmg. administrative and general expenses . . . (154) 4 (3) (150)

Operating loss . . . ..... . . . . .... . (123) 25 (98)

Other income and expenses, net . . . .. .. .. ... (6) (6)

Interest expense . . .. . ........ -

(5)(4) (5)

(Loss) income before income taxes and minority interest in income of subsidiaries . . . . . . . ... . ...... (129) 20 (109)

Income tax benefit (expense) . . . . . . . . . . . . . . . . . . . . .. 49 (51)(5) (9)

(7)(6)

Minority interest in income of subsidiaries . .. .......

Net loss . . . .... . . ... .. . .... ......

Q) y) 53)

Loss per common share (7) _ _

WESTINGHOUSE EL.ECTRIC COMPANY UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME For the Year Ended December 31,1996 Pro Fenne Hisserket Adjustseets Pro Fonna (in millises, escept per share date) 53.467 5 53.467 Sales of services and products. . . ... . .. ........ .

Costs of services and products . . .. .. .. ... .. (2.855) 85 (3) (2.770)

Restructuring. litigation and other matters ..... .. . . (888) (888)

Marketing, administrative and general expenses . . . .. (614) 15 (3) (599)

Operating loss . . ..... . . . .... . . (890) 100 (790)

Other income and expenses. net . . . . . ... . . (140) (140)

(1) (20)(4) (21)

Interest expense . .... . ... .. . . .. ....... . .

(Loss) income before income taxes and minority interest in (1.031) 80 (951) income of subsidiaries . . . . . . .. ...... . ... ..

income tax benefit (expense) . . . . . . . . .... ..... 370 (382)(5) (40)

(28)(6)

Minonty interest in income of subsidiaries . . . . . . . . ... .. (4) (4)

Net loss ... . . .... ....... ... ...... . . . . . g) g) 53 )

Loss per common share (7) _ _

See Notes to Unaudited Pro Forma Combined Financial Statements.

F-39 Page 5 of 6

m =.

EXHIBIT B NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS Balance Sheet (1) Accreed Restructuring. Pursuant to the terms of the Distribution Vreement, the Company will be reimbursed by Westinghouse for accrued liabilities associated with restructuring programs initiated prior to l

i the Distribution Date that are unpaid at the Distribution Date. This entry recognizes an asset for the reimbursement of these accrued liabilities.

l

! (2) ratsarion Allowance. Income taxes in the Combined Financial Statements were prepared as it the Company continued to file a consolidated tax return with Westinghouse. However, subsequent to the Distribution, the Company will not be permitted to file a consolidated tax return with Westinghouse and Westinghouse will retain the U.S. federal net operating loss carryforwards generated by the Company.

Therefore. the deferred tax assets associated with these net operating loss carryforwards will not be retained by the Company. Management has evaluated the potential for the Company to realize the remaining net deferred tax assets as a stand alone entity on the basis of the criteria of SFAS No.109. " Accounting for income Taxes." Without relying en future taxable income, other than that which could be generated through tax planning strategies, management has determined that a valuation allowance may be required.

Income Statement (3) Pension and Posterrirement Plans. As discussed in notes I and 3 to the December 31. 1996 Combined Financial Statements. Westinghouse will retain most of the pension and postretirement benefit obligations accrued through the Distribution Date The Company's cost associated with these plans l

! subsequent to the Distribution is expected to be substantially less, approximating the current service cost.

(4) Interest Costs. Although the Company would be essentially debt free at the Distribution Date, the Company would have needed to borrow funds under its revolving credit facility to meet the cash flow needs during its business cycles and other credit needs. Interest cost has been calculated by multiplying the estimated average borrowing requirements times a rate of 6.6% which is based on LIBOR plus 1%.

I (5) Valuation Allowance. This entry eliminates the deferred tax benefit associated with the net operatinF loss carryforwards generated during the period and adjusts the valuation a!!owance on the Company's remaining net deferred tax assets. See note 2 above.

(6) Income Ts.res. Pro forma adjustments reflect the current tax impact of the pro forma adjustments at a rate of 35%.

(7) Pro forma Earnings (Less) per Share. Pro forma loss per share has been calculated assuming shares of Company common stock were outstanding. This is based on the number of outstanding shares of Westinghouse common stock at the close of business on the record date of the Distribution and the distribution ratio to be determined.

l F-40 i Page 6 of 6

I I

EXISTING WESTINGHOUSE FINANCIAL ASSURANCE DOCUMENTS FOR DECOMMISSIONING

1. Westinghouse Continuing Certification of Financial Assurance for Decommissioning dated 3/22/96, Including Executed Copy of Standby Trust Agreement and Executed Copy of 12tter of Credit
2. NRC 12tter to Westinghouse dated 3/29/96 - Finding of Compliance
3. Westinghouse Continuing Certification of Financial Assurance For Decommissioning dated 3/6/97, Including Executed Amendment No. I to Standby Trust Agreement and Revised Standby Letter of Credit
4. NRC Ixtter to Westinghouse dated 4/23/97 - Finding of Compliance EXHIBIT C 1

RA 96-025 AJN Westinghouse Energy Systems Ba m Electric Corporation ^"*""*'*' " "

March 22,1996 U. S. Nuclear Regulatory Commission Office of Nuclear Material Safety and Safeguards Washington, DC 20555-0001-Attention: Mr. Michael F. Weber, Chief Low Level Waste and Decommissioning Projects Branch

Subject:

Revised Financial Assurance Mechanism for Decommissionmg

References:

1) Wesdnghouse letter dated January 11,1996 from A. J. Nardi to USNRC.

(Letter Number RA 96 002 AJN).

2) USNRC leger dated March 11,1996 from Michael F. Weber to A. J. Nanii.

The Westinghouse Electdc Corporadon hereby submits this revision to the financial assurance mechanism for it's NRC licensed facilities.The current financial assurance mechanism was established in a Westinghouse submittal dated January 31,1995 and amended by letter dated July 27,1995. In response to the revised regulations, WM:Tm submitted a proposed revision to the financial l assurance mechanism by letter dated January 11,1996 (Reference 1) and the USNRC re_ with comments by letter dated March 11,1996 (Reference 2).

'the financial instrument being utilized by Westinghouse is four standby letters of credit with an associated standby trust. This sutuniaal is to maintain compliance with the Commission's decommissioning financial assurance regulations corvairwl in 10CPR 30,40,50, and 70, " Financial assurance and recordkeeping fbr darammissioning". A!! of the comments provided in Reference 2 have

- been incorporated into this anhmitral This suW . .,*td d ic.iowing changes to the financial assurance mechanism:

li Attachment 1 provides an updated " Continuing Certification of Financial Assurance"

2) A new StantAry Trust Agmement (Attachment 2) has been antahlimbed with Dai-Ichi Kangyo Trust Company of New Yost effective April 7,1996 to replace the pdor trustee, Morgan I Guaranty. Anachment 3 provides the necessary evidence that the person signing the trust for Wd=h-- is authodsed to do so.
3) A founh leser of Credit (Attadunent 4) has been established, effective April 7,1996, in the amount of $20.264,000.00.1his amount is sufficient to replace the expiring Bank of America j leuer of credit and to increase the required amount of financial assurance as described in Attachment 2. Schedule A.

(

RA96435AAlaesses

Director. Orrice of Nuclear Matenal Safety and Safeguards Page 2 RA 96-025 AJN March 26.1996

4) The summary tables for the revised decommissioning cost estimate for the Westinghouse Waltz Mill Site (License Numbers SNM-770 and 1R-2) were included with Reference I and are not repeated with this submittal. Those cost estimates are the basis for the changes in the values presented in Attachment 2, Schedule A. All other decommissioning cost estimates are unchanged.

This submittal completes the Westinghouse actions required under the pmvisions of the " Clarification of Decommissioning Funding Requirements" (60FR38235,7/26S5). If you have any questions

conceming the infonnadon provided in this submittal, please contact me on (412) 374-4652.

Very truly yours,

/

i A. ardi, Superv ry Fny w r Regulatory Affairs -

Energy Systems Business Unit

< Anachments l

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4 4 mm e ATTACHMENT 1 CONTINUING CERTIFICATION OF FINANCIAL ASSURANCE i

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l ATTACHMENT I i CONTINUING CERTIFICATION OF FINANCIAL ASSURANCE Principal: Westinghouse Electric Corporation Westinghouse Building Gateway Center Pittsburgh PA 15222 Malling address for correspondence reganiing this matter:

Westinghouse Electric Corporation Energy Systems PO Box 355 Pittsburgh PA 15230 NRC license numbers, name and address of each facility:

See page 2 of this attachment (Listing of Wesdnghouse licenses covered by this certification)

Issued to: US Nuclear Regulatory Commission Washington DC 20555 This is to certify that Wa=*inghause Electric Corporadon is licensed to possess a Production and Utilization Pacility and By-product. Source Material and Special Nuclear Material licenses; and that financial asairance in the amounts prescribed by 10CFP. Parts 30,40,50 and 70 has been obtained for the purpose of decommissioning. The list of licenses en page 2 of this attachment idendfies the specific licenses covered and the amounts of financial assurance provided for each. The total financial assurance amounts to $81J91,000 which is an increase of $11,249,000 over the previous financial assurance amounts.

Sincerely.

Y _

N. D. Woodson, Vice President Energy Systems Business Unit

SCHEDULE A "O STANDBY TRUST AGREEMENT LISTTNG OF NRC LJCENSES FOR WESTINGHOUSE ELECTRIC CORPORADON TRUST AGREEb4ENT SCHEDULE FINANCLAL NRC ASSURANCE UCENSE FACIIIIT UCENSE 1TPE OF VALUE' NUMBER LOCATION AND ADDRESS STA1115 UCENSE IN $000 1 SNM 1107 ,*

Nuclear Fuel Fabrication Active. SNM 31,984*

Bluff Road, Columbia, SC 29250 Expires 10A)5 2 37 5809 01 Pump Repair Facility-EMD Active. Combined 7,000*

Cheswick Ave., Materials Cheswick, PA 15024 Expises 12/31/97 3 37 5809 02 Industrial Radiography Facility Active. Byproduct 18' Cheswick Avenue Empires 9/30A)0 Cheswick, PA 15024 4 SNM 1120 Plutonium Fuels Development lab 8 Possession only. SNM 25 Cheswick Ave.

Cheswick, PA 15024 Expins 6/30/97 5 SNM 770 Waltz Mill Site Active, under timely Combined 24,051' P.O. Box 158 reeswal. Materials Madison, PA 15663 0158 Expind 10/3147 6 Tal 2 Westinghouse Test Reactor8 Possession only, Part 50 13,948' Waltz Mill Sles under timely i P.O. Box 158 senews!.

Madison, PA 15663 0158 Expired 11/30/93 l 7 SNM 1460 Science and Technology Ceaser Active. Combined 2,900*

(Hot Cells), Beslah Road Materials i

Pittsburgh, PA 15235 Espins 9/30/97 l

! 8 SNM-47 Science and Technology Ceaser Active. Combined 750 f Bealsh Road Materials l Plasbergh, PA 15235 Expises 11/30/96 9 37 00497 15 Fosest Hills sites Active. Combined 750 l P.O. Box 455 Materials Pinsburgh, PA 15230 0855 Empires 11/30/96 10 SMB 1527 BloomSaid, New Jemey8 Active. Soesce 150 P. O. Bos 127 Uceans extended Material 1 Wesdaghouse Pissa until termilassed.

M NI 07003 l 11 52 19336 01 Weenaghness de Puerto Rico Assive Bypsodecs Washlagnes and Uacola Samen 15*

Building #S-238 54 Cayey, Pueno Rico 00633 Exples 2/28/97 Totals 81,591 l

1 Finsacial assursace values referenced la (10CFR 30.35,40.36,50.75 and 70.25).

4 Deco ==l=halag completed.

3 This is possession only type license.

4 C+:-:= " "- ' ; cost is based os as engineering sandy.

5 Under active decomunissioning. 1M j

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OG *S ATTACIDENT 2 EXECUTED COPY OF STANDBY TRUST AGREEMENT l

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1 STANDBY TRUST AGREEMENT THIS STANDBY TRUST AGREEMENT (the " Agreement") is made and entered

~

I into as of the 7tf1 day of April,1996, by and between Westinghouse Electric Corporation a  ;

Pennsylvania corporation, herein referred to as the " Grantor", and Dai-Ichi Kangyo Tntst I Company of New York, incorporated in the State of New York. the " Trustee".

WHEREAS, the U.S. Nuclear Regulatory Commission (NRC), an agency of the U.S.

Govemment, pursuant to the Atomic Energy Act of 1954 as amended (AEA). has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 30, 40, 50, or 70. These regulations, applicable to the Gramor, require that a holder of, or an applicant for, a Part 30,40, 50, or 70 license provide assurance that funds will be available when needed for required decommissioning activities; and '

WHEREAS, the Grantor has elected to use letters of credit to provide all of such financial assurance for the facilities identified herein; and WHEREAS, when payment is made under the letters of credit, this standby trust shall l be used for the receipt of such payment; and l l

WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Apwss, and the Trustee is willing to act as trustee, NOW, 'IEEREFORE, the Grantor and the Trustee agree as follows: l Section 1. Dennitions. As used in this Agreement:

(a) The tenn " Grantor" means the NRC licensee who enters into this Agreement and any swmws or assigns of the Grantor.

The term " Trustee" means the trustee who enters into this A' greement and any (b)- l successor Trustee.

Section 2. Casts of Deconunissioning. This Agreement pertains to the costs of decommissioning the materials and activities identified in the attached Schedule A issued pursuant to 10 CFR Pat 30, 40, 50, or 70.

Seed = 1 Establishinant of Fund. The Grantor and the Trustee hereby establish a standby trust fund (the " Fund") for the benefit of the NRC. The Grantor and the Trustee intend that no third party has access to the Fund except as provided herein. l sed.=. 4. %= ~; r==dende the Fa=d Payments made to the Trustee for the Fund shall consist of cash and Eligible Securities. The Fund is initially unfunded.

Payments made to the Trustee for the Fund shall consist of payments made by the issuer of the Irrevocable Letters of Credit pursuant to its terms, which are described in Schedule B attached hereto. Such pvysty and any other pupsry subsequently

m asts

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i transfened to the Tmstee are referred to as the " Fund", together with all eanungs and profits thereon, less any payments or distributions made by the Tmstee pursuant to this I Apawnt. The Fund shall be held by the Trustee, IN TRUST, as hereinafter I provided. The Tmstee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of the Fund, nor any duty to collect from I the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the NRC.

Section i Payment for Reanired Activities Snecified in the Plan- The Tmstee shall make payments from the Fund to the Grantor upon presentation to the Trustee of the following:

a. A certificate duly executed by the Secretary of the Grantor attesting to the occummce of the events, and in the form set forth in the Specimen Certificate attached hereto as Schedule C, and  ;
b. A certificate executed by the Grantor attesting to the following conditions:

(1) that decommissioning is proceeding pursuant to an NRC-approved plan.

(2) that the funds withdrawn will be expended for activities undertaken pursuant to that plan, and (3) that the NRC has been given 30 days' prior notice of the Grantor's '

intent to withdraw funds from the Fund.

l No withdrawal from the Fund can exceed 10% of the outstanding balance of the Funds applicable to a particular license, without written approval from the NRC.

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In the event of the Grantor's default or inability to direct ex+ssioning activities, the Trustee shall make payments from the Fund as the NRC shall direct in writing, to provide for the payment of the costs of required activities covered by this Agreement. The Trustee shall reimburse the Grantor or other persons as specified by  ;

l the NRC, or State agency, fmm the Fund for expenditures for required activities in

! such amounts as the NRC, or State agency, shall direct in writing. In addition, the l Trustee shall refund to the Gnetor such amounts as the NRC specifies in writing.

Upon refund, such funds shall no longer constitute part of the Fund as defmed herein.

u= & Trust Management.

  • The Tmstee shall invest and reinvest the principal and income ot the Fund and keep the Fund invested as a single Fund, without distinction between principal and income, in accad we with general investment policies and guidelines which the Gmntor may communicate in writing to the Trustee fium time to time, subject, however, to the provisions of this section. In investing, reinvesting, exchanging, selling and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, pmdence and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and tu2 as,s -

j

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familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; escp1 ths:

(a) Securities or other obligations of the Grantor, or any other owner or operator of th'e facilities, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15 U.S.C. 80A-2(a)). shall not be acquired or held.

unless they are securities or other obligations of the Federal or a State govemment; (b) The Trustee is authorized to invest the Fund in Eligible Securities as  ;

! hereinafter defined. Eligible Securities shall be securities or other obligations of the Federal Govemment, i.e., GNMA, FNMA, and FHLM bonds and l certificates or State and Municipal bonds rated BB3 or higher by Standard &

l Poor's or Baa or higher by Moody's Investment Services.

Section 7. Frnress Powers of Trustee. Without in any way limiting the powers and l

discretion conferred upon the Tmstee by the other provisions of this Agreement or by  ;

law, the Tmstee is expressly authorized and empowered:

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(a) To sell, exchange, convey, transfer, or otherwise dispose of any gety held

! by it, by public or private sale, as n~==y to allow duly authorized  :

withdrawals or to reinvest in Eligible Securities at the direction of the Grantor. 1 (b) To make, execute, acknowledge, and deliver any and all documents of transfer  :'

l and' conveyance and any and all other instruments that may be necessary or i-amupriate to carry out the powers herein gmnted;

, (c) To register any securities held in the Fund in the name of the Grantor, and to  ;

hold any security in bearer form or in book entry, to reinvest interest payments and funds from matured and thTsi instruments in Eligible Securities, to file l l  !

proper forms concerning securities held in the Fund in a timely fashion with smvriate govemment agencies, or to deposit 'or arrange for the deposit of such securities in a qualified central depository, or to deposit or arrange for the ;

deposit of any securities issued by the U.S. Govemment, or any agency or  !

instrumentality thereof, with a Federal Reserve Bank in book entry fonn, but l l

l L . the books and records of the Trustee shall at all times show that all such securities are part of the Fund.

(d)- To ccnurvinise or otherwise adjust all claims in favor of or against the Fund.

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.. s Section.8. Taxes and_ Expenses. All taxes of any kind that may be assessed or l levied against or in respect of the Fund and all brokerage commissions inctured by the Fund shall be paid from the Fund. All. other expenses inctured by the Trustee in connection with the administration of this standby trust. including fees for legal services rendered to the Tmstee, the compensation of the Tmstee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid from the Fund.

Section 9. Annual Valuation. After payment has been made into the Fund, the Trustee shall annually, at least 30 days before the anniversary date of receipt of payment into the Fund, fumish to the Grantor and to the NRC a statement conftmung the value of the Fund. Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. <

lhe failure of the Grantor to object in writing to the Trustee within 90 days after the statement has been fumished to the Grantor and the NRC, or State agency, shall constitute a conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the statement.

Section 10. Advice of C~-- ' The Tmstee may from time to time consult with counsel, who may be counsel to the Grantor, with respect to any question arising as to the constmetion of this Agreement or any action to be taken hereunder. The Tmstee shall be fully protected, to the extent permitted by law, in acting on the advice of counsel.

Sectian 11. Trustee C~===== dan- The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing from time to time with the Grantor.

Section 12. Successor Trustee. Upon 90 days notice to the NRC, or State agency, the Trustee may resign; upon 90 days notice to NRC, or State agency, and the Trustee, the Grantor may replace the Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a armw Trustee and this successor accepts o the appointment. The armw Trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the sire =r Trustee's acceptance of the .wd- r., the Trustee shall assign, transfer, and pay over to the successor Tmstee the funds and properties then constituting the Fund. If for any reason the

' Granter cannot or does not act in the event of the resignation of the Trustee, the Tmstee may apply to a court of cortpetent jurisdiction for the appointment of a

!- successor Trustee or for instructions. The armw Tmstee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the NRC or State agency, ard the present Trustee by certi6ed mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts contemplated by this Section shall be paid as provided in Section 8.

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_ _ _ _ _ _ .-_-- . _ _ __ _. a

.. s Section 11 Instructions to the Trustee. All orders, requests, and instmetions by the Grantor to the Trustee shall be in writing, signed by such persons as are sipatories to this Agreement or such other designees as the Grantor may designate in writing. He Tmstee shall be fully protected in acting in accordance with such orders, requests and instructio'rs. If the NRC or State agency issues orders, requests or instructions to the Trustee. these shall be in writing. signed by the NRC, or State agency.or their desipees, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests and instmetions. De Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor.

the NRC, or State agency, hereunder has occurred. He Tmstee shall have no duty to act in the absence of such orders. requests, and instructions from the Grantor and/or the NRC, or State agency, except as prov.ided for herein.

Section 14. Amendment of Aereenwnt- His Agreement may be amended by an instmment in writing executed by the Grantor, the Tmstee and the NRC, or State agency, or by the Trustee and the NRC or State agency, if the Grantor ceases to exist.

Section 15. Irrevacahility and Tereninetian- Subject to the right of the parties to amend this Agreement as provided in Section 14, this tmst shall be irrevocable and l shall continue until terminated at the written agreement of the Grantor, the Tmstee, and the NRC or State agency, or by the Trustee and the NRC or State agency, if the Grantor ceases to exist. Upon termination of the trust, all remaining trust pupeny, less fmal trust administration expenses, shall be delivered to the Grantor or its successor. -

Section 16. Immunity and Indemnification. De Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this trust, or in carrying out any directions by the Grantor, the NRC, or State agency, issued in accud.w.e with this Agreement. De Tmstee shall be indemnified and saved harmless by the Grantor or from the Fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its otlicial capacity, including all extenses reasonably incurred in its defense in the event the Grantor fails to provide such defense.

Section 17. His Agreement shall be administered, constmed, and enforced according to the laws of the State of New York.

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Section 18 Interpretation and Severability. As used in this Agreement. words in the singular ine' ode the plural and words in the plumi include the' singular. The descriptive heanings for ecch section of this Agreement shall not affect the interpretation or the legal efficacy of this Agreement. If any part of this Agreement is invalid. it shall not affect the remaining provisions which will remain valid and enforceable.

IN WrfNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers duly authorized and the incorporate seals to be hereto affixed and attested as of the date first written above.

ATTEST: WESTINGHOUSE ELECTRIC CORPORATION By:  ;

c. e - /-

Title:

' dica ~ a ec t i ( > t-ATTEST: DAI-ICHI KANGYO TRUST COMPANY OF NEW YORK

$ By: e v' -

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Title:

- Vicz Preside.nt 1

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WHEDt1E A TO STANDRY TRtWT AGREEMENT 11STTNG OF NRC LICENSES FOR WESTINGHOUSE ELECTRIC CORPORATION TRUST AGREEMENT SCHEDt1E FINANCIAL NRC ASSL'RANCE UCENSE FACIUTY UCENSE TYPE OF VALtlE'

{

NUMBER LOCATION AND ADDRESS STATUS UCENSE IN $000 l

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1 SNM 1107 Nuclear Fuel Fabrication Active. SNM 31.9W Bluff Road, Columbia, SC 29250 Expires 1045 l 2 37 5809 01 Pump Repair Facility.EMD Active. Combined 7.000*

Cheswick Ave., Materials Expires 12S1/97 Cheswick. PA 15024 )

3 37 5809 02 Industrial Radiography Facility Active. Byproduct 18' f Cheswick Avenue Expires 900/00 {

Cheswick, PA 15024 j 4 SNM 1120 Plutonium Fuels Development Lab' Possession only. SNM 25 Cheswick Ave.

Cheswick, PA 15024 Expires 600/97 5 SNM 770 Waltz Mill Site Active, under timely Combined 24,051' P.O. Box 158 renewal. Materials (

Madison, PA 15663-0158 Expired 10/31/87 j 6 7R 2 Westinghouse Test Reactor 8 Possession only, Part 50 13,948' Waltz Mill Site under timely P.O. Box 158 renewal.

Madison, PA 15663 0158 Expired 11/3033 7 SNM 1460 Science and Technology Center Active. Combined 2,900' (Hot Cells), Beulah Road Materials Pittsburgh, PA 15235 Empires 900/97 8 SNM-47 Science and Technology Center Active. Combined 750 Beulah Road Materials Pittsburgh, PA 15235 Expires 11/30/96 s Combined 750 9 37-00497 15 Forest Hills Site Active.

P.O. Box 855 Materials Pittsburgh, PA 15230-0855 Empires 1100/96 10 SMB 1527 BloomSeld, New Jersey8 Active. Souice 150 P. O. Box 127 Ucense extended Material 1 Westinghouse Plam until terminated.

BloomSeld, NJ 07003 11 52 19336 01 Westinghouse de Puerto Rico Active Byproduct Washingnos sad Llacola Strees 15' Building #S-238 54 Cayey, Puerto Rico 00633 Expires 2/28/97 l 1

Totals 81,591 l

1 Financial sasurance values referenced la (10CFR 30.35,40.36,50.75 and 70.25).

2 Decommissioning completed. l 3 nis is possession only type license.

4 Decommissioning cost is based on an engineering study.

1/96 l 5 Under active deconsussionias.

o- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ .

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.. s SQEDJaM H I.Q M BU.S.I AGREEMENT I ISTING OF IFTTERS OF CREDIT Date Entered (1) Issuing Institution of Amount Irrevocnhle i etter of Credit

  • l l

April 9,1993 Chemical Bank Delaware S 4,380,000.00 P.O. Box 8840 Wilmington, DE 19899 April 9,1993 ABN AMRO Bank N.V. 518,845,000.00

{j Pittsburgh Branch One PPG Place l Suite 2950 Pittsburgh, PA 15222-5400 January 24,1995 The Toronto-Dominion Bank $38,102,000.00 Three First National Plaza 70 West Madison Street Suite 1900 Chicago,IL 60602 April 7,1996 The Toronto Dominion Bank S20, 264,000.00 Three First National Plaza 70 West Madison Street Suite 1900 Chicago,IL 60602 I

$81,591,000.00 TOTAL l-

  • Beneficiary of Letter of Credit is NRC L

(1) Automatically renew after 12 months unless prior notice is given.

M C JQ STANDBY IIESI AGREpIENT SPECIMEN CERTIFICATE OF EVENTS Dai-Ichi Kangyo Trust Company of New York One World Trade Center, Suite 5031 New York. New York 10048 Attention: Corporate Tnast Department Gentlemen:

In accordance with the terms of the Agreement with you dated April 7,1996. I, General Manager of [ insert name of licensee], hereby certify that the following events have occuntd:

1. Westinghouse Electric Corporation is required to commence the decommissioning of its fxility located at [ insert location of facility) (hereinafter called the decommissioning).
2. The plans and procedures for the commencement and conduct of the decommissioning have been approved by the United States Nuclear Regulatory Commission, or its successor, on (copy of approval attached).
3. He Board of Directors of Westinghouse Electric Corporation has adopted the attached resolution authonzmg the commencement of the decommissioning.

General Manager Westinghouse Electric Corporation l

Date Secretary Westinghouse Electric Corporation

[ SEAL]

1 s .. *,

SCHEDULE C ((2EdIQ EAEBX M AGREEMENT CERTIFICATE OF RFSOLUTION i

I. , do hereby certify that I am Secretary of Westinghouse Electric Corporation, a Pennsylvania Corporation. and that the resolution listed below was duly adopted at a meeting of this Corporations' Board of Directors on

, 19 l

! In WFINESS WHEREOF, I have hereunto signed by name and afRxed the seal of this Corporation this day of , 19 .

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RESOLVED, that this Board of Directors hereby authorizes the Chairman, or such other employee of the Company as he may designate, or such other employee of the Company as he may designate, to commence deanrunissioning activities at [ insert name of facility) in accordance with the temis and conditions described to this Board of Directors at this meeting and with such other temis and conditions as the Chairman shall approve with and upon the advice of Counsel.

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ACKNOWLEDGEMENT STATE OF New York )

To Wit: ) ss:

CITY OF. New York )

On this 21st day of _ March 19 BL , before me, a notary public in and for the City and State aforesaid, personally appeared Ruth H.

Fu=wil , and she did depose and say that she is the Vice Pimihe of Dai Ichi E==wo Tr==d C--- ==v of N= York , a trust company, Trustee, which executed the above instrument, that she knows the seal of the said association; that the seal affixed to such instrument is such corporate seal; that it was so affixed by order of the association, and that she signed her name thereto by like order.

J L NQ

~~mW **

Quemies in trena county Comuniesten Empires Apnl 3,1997 My commianian expires:

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j ATTACHMENT 3 WESTINGHOUSE CERTIFICATION OF l AUTHORIZED SIGNATURE  !

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.. s EXTRACT FROM MINUTES OF MEETING OF THE BOARD OF DIRECTORS OF i WESTINGHOUSE ELECTRIC CORPORATION HELD ON APRIL 26, 1995 RESOLVED, that, effective May 1, 1995, the Chairman, the ,

Chief Executive Officer, the President, each Vice President, the '

Treasurer, the Controller and the Secretary of the Corporation, and each of them individually, are hereby authorized, in the name  ;

and on behalf-of the Corporation, in the ordinary conduct of the  !

Corporation's business, (. A ) to sign, execute, deliver and bind the Corporation with respect to: (i) all contracts, agreements, deeds, leases, conveyances, transfers of real or personal l property, grants of public utility easements, powers of attorney i

( (with full and general or limited authority with power of ,

l substitution), releases, waivers, assignments, claims documents l and other documents of a contractual nature, (ii) all bonds, ,

obligations, and letter of credit applications or reimbursement l agreements, (iii) all applications for regulatory permits and l licenses and other governmental forms, including but not limited to tax returns, tax elections, and any documents required in connection with patent, trademark and copyright matters, (iv) any other instrument similar to the preceding, and (v) with respect

'to the ordinary course of business of majority-owned or  !

wholly-owned , subsidiaries of the Corporation, guaranty or similar arrangements or letter of credit applications or reimbursement agreements, and (B) to vote, in person or by proxy, any-interest that the Corporation may have in any corporation, partnership, i joint venture or other entity or association; RESOLVED, that the Secretary (if he.or she shall not sign the document) or any Assistant Secretary is hereby authorized to affix the corporate seal thereto and to attest as to the items i set forth in the preceding resolution-l RESOLVED, that each of the officers specified in the

! preceding two resolutions is also authorized to delegate his or I her respective signature or voting authority granted in said

- resolutions by a writing (x) specifying the scope of the  :

authority being delegated by the writing, (y) identifying the l delegate either by name or as the incumbent of a position, and (z)madvising the delegate that he or she shall have no authority to redelegate the signature authority being delegated; and provided, further, that none of the above-specified officers i shall-have any authority to bind the Corporation during such l period that his or her then current assignment may require his or her residence in any country other than the United States of America, its ter:itories and possessions; i

law 2.stst

i RESOLVED, that, in addition to the authorization set forth j in A(iii) of the first of the preceding three resolutions, any  !

assistant secretary, assistant treasurer, or assistant  ;

controller, and each of them individually, is hereby authorized, in the name-and on behalf of the Corporation, to sign, execute, deliver and bind the Corporation with respect to any tax return or tax election; RESOLVED, that any signature or voting authority pursuant to the preceding four resolutions, and any delegation of such signature or voting authority pursuant to the third of such preceding four resolutions, shall not constitute a delegation of, or change in, the limits of authority otherwise imposed on the specified officers or their delegates or on the specified assistant officers or in any manner be permitted to operate in derogation of such limits of authority RESOLVED,-that a copy of every delegation or change in a  ;

previous delegation made pursuant to the third of the preceding  ;

five resolutions shall be submitted to the General Counsel of the l Corporation promptly after the delegation or change has occurred; I and RESOLVED, that the signature and voting authority granted by the above resolutions shall be in addition to, and not by way of substitution or replacement for or revocation of, any prior grant i' or grants of signature or voting authority by the Board of Directors.

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I, R. S. HICKMAN, Assistant Secretary of Westinghouse Electric Corporation, DO HEREBY CERTIFY that the foregoing is a  !

true and correct copy of resolutions adopted at a meeting of the

' Board of Directors of said Corporation held on April 26, 1995, at j which meeting a quorum was present. l IN WITNESS WHEREOF, I have hereunto set my hand and affixed  !

the scal of said Corporation.  !

. Dated: March 18, 1996 l

- W Assistant Secretary I

LA M .8tSI j

.. s WESTINGHOUSE ELECTRIC CORPORATION?

Certification as to Officers I, R. S. HICKMAN, Assistant Secretary of Westinghouse Electric Corporation, DO HEREBY CERTIFY that the persons listed below-are officers of said Corporation as of this date:

M. H. Jordan Chairman and Chief Executive Officer G.'M. Clark President F. R. Bakos Vice President J. D. Bergen Vice President L. D. Bridge Vice President L. J. Briskman Vice President J. A. DePalma Vice President J. L.'Gallagher Vice President R. J. Hadala Vice President F. J. Harvey Vice President J. F. Hay Vice President W. C. Korn Vice President R. A. Linder Vice President A. Melissaratos Vice President J. S. Moore Vice President C. E. Morf Vice President and Treasurer S. R. Pitts Vice President F. G. Reynolds Vice President W. F. Stoll Vice President

~A. C. Straka Vice President and Secretary J. F. Watson, Jr. Vice. President N. D. Woodson Vice President -

D. Zemelman Vice President R. H. Zwirn Vice President l

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L unm.

. - = _______ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -

R. P. Daigle Assistant Controller j D. E. Dunn Assistant Controller i F. G. Reynolds Assistant Controller I

M. W. A. Alan Assistant Secretary C. J. Birt Assistant Secretary D. A. Brakoniecki Assistant Secretary {

L. J. Briskman Assistant Secretary j V. J. Carpenter Assistant Secretary {

P. W. Cavanaugh Assistant Secretary  !

M. H. Charles Assistant Secretary C. Chulay Assistant Secretary J. R. Cottrell Assistant Secretary C. L. Davis Assistant Secretary B. M. Gorman Assistant Secretary  ;

R. S. Hickman Assistant Secretary S. A. Hildebrandt Assistant Secretary M. W. Huber Assistant Secretary D. L. Klausman Assistant Secretary C. L. McAdams Assistant Secretary M. P. Messinger Assistant Secretary L. W. Patross Assistant Secretary R. D. Pietrala Assistant Secretary I J. M. Plasynski Assistant Secretary 1 D. H. Posy Assistant Secretary C. J. Ranck Assistant Secretary W. F. Stoll Assistant Secretary M. T. Sweeney Assistant Secretary D. D. Vickovic Assistant Secretary <

l IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation.

Dated: March 18, 1996 1

Assistant Secretary law 2:2cm

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ATTACHMENT 4 i

EXECUTED COPY OF LETTER OF CREDIT, j TORONTO DOMINION BANK L

t__________________.. _ _ _ _ . _ _ _ _ _ _ _ _ _ . _

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The Toronto-Dominion Bank 909 Fannin, Suite 1700 Houston, Texas 77010 (713) 653-8200 IRREVOCABLE STANDBY LETTER OF CREDIT NO.1339

$20,264,000.00 Expiry: April 7,1997 U.S. Nuclear Regulatory Commission ("NRC")

Decommissioning and Regulatory Branch Washington, D.C. 20555 Attention: Group Chief i

Dear Sir or Madam:

I We hereby establish our irrevocable Standby Letter of Credit No.1339 in your favor, at i the request and for the account of Westinghouse Electric Corporation,11 Stanwir. {

Street, Pittsburgh, PA 15222, up to the aggregate amount of U.S. Dollars Twenty Million Two Hundred Sixty-four Thousand and 00/100 available upon presentation of:

1) your sight draft, bearing reference to the Letter of Credit No.1339, and 1
2) your signed statement reading as follows: I certify that the amount of the j draft is payable pursuant to regulations issued under the authority of the  ;

U.S. Nuclear Regulatory Commission.

l This Letter of Credit is issued in accordance with regulations issued under the authority

. of the NRC, an agency of the U.S. Govemment, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. The NRC has promul-gated regulations in Titis10, Chapter 1 of the Code of Federal Regulations, Parts 30, 40, 50 or 70, (the " Applicable Regulations") which require that a holder of, or an applicant for, a license issued under the Applicable Regulations, provide assurance that funds will be available when needed for decommissioning.

This Letter of Credit is effective as of April 7,1996 and shall expire on April 7,1997, but such expiration date shall be automatically extended for a period of at least 1 year on April 7,1997 and on each successive expiration date, unless, at least 90 days before the current expiration date, we notify both you and Westinghouse Electric Corporation, by certified mail, as shown on the signed retum receipts.

If Westinghouse Electric Corporation is unable to secure altemative financial assur-ance to replace this Letter of Credit within 30 days of notification of cancellation, the NRC may draw upon the full value of this Letter of Credit pnor to cancellation.

1 3 s The Toronto-Dominion Bank shall give immediate notice to "WEC" and the "NRC" of any notice received or action filed alleging (1) the insolvency or bankruptcy of The Toronto-Dominion Bank, or (2) any violations of regulatory requirements that could result in suspension or revocation of The Toronto-Dominion Bank's charter.

The Toronto-6orninion Bank also shall give immediate notice if, for any reason, it becomes unable to fulfill it's obligations under the Letter of Credit No.1339.

Whenever this Letter o' Credit is drawn on under and in compliance with the terms of this Letter of Credit, Tw Toronto-Dominion Bank shall duly honor such draft upon it's presentation to us within 30 days, and we shall deposit the amount of the draft directly into the Standby Trust Fund of Westinghouse Electric Corporation in accordance with the NRC's instructions.

Each draft must bear on it's face the clause: " Drawn under Letter of Credit No.1339 dated April 7,1996 and the total of this draft and all other drafts previously drawn under this Letter of Credit does not exceed $20,264,000.00." l This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision, international Chamber of Commerce, Paris, France, Publica-tion No. 500).

THE TORONTO-DOMINION BANK By: NOi' A %d aw Name: (UMEblY BURLESON 6M

Title:

ida. CR ADMIN.

By:

W%. ""'

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l- .r "%' t UNITED STATES oEC20VE it g y

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NUCLEAR REGULATORY COMMISSION wasniwarow, o.c. nasewoo'

, spR - 1995

% ESBU REGULATOR (AFFAIRS l March 29, 1996 I

%*kek9+ 3 L

f Mr. A. Joseph Nardi Westinghouse Electric Corporation Regulatory Affairs Energy Systems Business Unit P.O. Box 355 Pittsburgh, PA 15230

SUBJECT:

RESPONSE TO REVISED FINANCIAL ASSURANCE MECHANISM FOR DEC0mISSIONING, DATED MARCH 22, 1996

Dear Mr. Nardi:

We reviewed the March 22, 1996, Westinghouse Electric Corporation revised financial assurance documents for decoimissiening increasing the dollar amount to $81,591,000. Your submittal responded to c,ur earlier comments provided in our letter dated March 11, 1996. We received your executed revised new letter of credit and executed revised new standby trust agreement and continuing certification of financial assurance statement. My staff has reviewed your submittals and find them In compliance with our decommissioning financial assurance regulations.

Should you have a'ny questions, please contact Mr. Louis Bykoski at (301) 415-6754.

Sincerely, f/fff -

Robert A. Nelson, Acting Chief l

Low-Level Waste and Decommissioning Projects Branch Division of Waste Management Office of Nuclear Material Safety and Safeguards

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. 1 Box 355 WOStin$ louse Energ Systems

"5""'8" **'*'" ' 523 ~ 0355 Electric Corporation 1

March 6,1997 l

RA-97 031 U.S. Nuclear R- 8-~y Commission i W- Wgena, D.C. 20555 Attention: Director, Of5cc of Nuclear Material Safety and Safeguards

~ Dear Sir.

l '

Subject:

Revised Fmancial Assurance Mechanism for Decommissioning I

i The Wu--p == Electnc Corporation hereby submits a revision incrossag the total dollar

)

[ amount of-f+= -- !='- ' ; Anancial assurance funds for its NRC licensed facilities from the amount identified in Westeghouse's last upMted submittal to the enava.maian dated March 22, 1996. The financial instrument being used b, Westeghouse to reflect the increase in the Fianacial Assurance Machanism is a stan6y letter of credit with an associated amendment to the existag standby trust. This submittal is to maintain compliance with the Commission's decomnussiomag

]

financial assurance regulations eaatalaad in " General Requirements for Decomnussiomas Nuclear .

Facilities," 10 CFR Parts 30,40,50, and 70.

'Ihe revised amount, as reflected in the newly issued letter of credit, is the not effect menaciarad with two (2) changes that are bemg made in the Westaghouse decommissiomng E==acial assurance amount. The first change is to increase the Fianacial Assurance amount applicable to I icanae Number SNM-47 to reflect the preparation of a cost estimate for -f+ -

' ; This acten is being taken as part of the application for renewal of this hoense. The second change is to ehmmate the femacial assurance ==vanar ===ariatad with License Number 52-19336 01 which has been removed frern the list of Westaghouse bcensed facdities because this license has beni transfernd to the new owners of the facihty. The cumulative effect of these two changes is to increase the overall amount of Annacel assurance required by an amount of $777,000.

This revised submittal includes the followmg attachments: Contineng Certification of Financial Assurance (Attachment 1); Anundment No. I to Standby Trust Agreement (Arrachment 2); a revised Standby letter of Credit in the amount of $21,041,000 which is an increase of $777,000 over the ongmal value (Mench===e 3); and the Decommissioning cost estimate for License Number SNM-47 (Attachment 4). ,laciudad in Attachment 1 is a revised idearancarian of the

- specific NRC lumnses held by Westaghouse

~

Also aaelamad are two addirianal ongmals of Amendment Number i to the Standby Trust Agreement. Please have an appropnate agency of5cial execute these documents, as well as the J

l t

l copy of the amendment to the Standby Trust (Attachment 2) which forms a part of this submittal, l and retum the two a&htional ongmals to me for our files and the files of the Trustee bank.

The acuans taken by this transmittal complete the requirements of License Condition #12 in Amendment #19 to I ===e SNM 47 (Docket 70-00048) as renewed on February 20,1997. If you have any qiie=riane concerning this transmittal, please cantut me at (412) 374-4652.

Very truly yours, A.J Nardi, Su sory F=p -

ESBUPT t-*~y Affairs cc: U.S. Nuclear Reit=*~y Commission, Region I 475 All-tale Road King of Prussia, PA 19406 Attention: John D. Kmneman i

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e ATTACHMENT 1 CONTINUING CERTIFICATION OF FINANCIAL ASSURANCE l

i

l ATTACHMENT 1 CONTINUING CERTIFICATION OF FINANCIAL ASSURANCE Principal: Westmghouse Electnc Corporata Westaghouse Buildmg Gateway Center Pittsburgh PA 15222 Madmg address for wie-y= === regardag this matter:

Westinghouse Electnc Corporataan Energy Systems PO Box 355 Pittsburgh PA 15230

! NRC license numbers, name and address of each facility:

! See Attachment 1, p. 2 (List of WePm i== covered by this cemficata)

I

! Issued to: US Nuclear Regulatory Comnussion Washmgion DC 20555 I

This is to cemfy that Wesunghouse Electnc Corporata is beensed to possess a Producta and U*ilie Facility, and By-product, Special Nuclear and Source Matenals twe==; and that Ananc=1 assurance in the amounts prescribed by 10 CFR Parts 30,40,50, and 70 has been obtamed for the purpose of i decomminioning The list of hcenses in Attachment 1, page 2, W=hnan the speci6c heennes currently covered and the amounts of A=acal assurance prended for each, The total Ananc=1 assurance amounts to S82,368,000, an increase of S777,000 over prenous financial assurance amounts f Sincerely, l s r' ,

. T. E. Mistler Energy Systems Baaina== Unit l

. .. s ATTACHMENT L PAGE 7 LETING OF NRC LICENSES FOR WESTINGHOUSE ELECTRIC CORPORATION TRUST AGREEMENT SCHEDULE i FINANCIAL I NRC ASSURANCE LICENSE FACILITY TYPE OF VALUE' NUMBER LOCATION AND ADDRESS LICENSE IN $000 1 SNM 1107 Nuclear Fuel Fabrication SNM 31,984' Bluff Road, Columbia, SC 29250 l 2 37 5809-01 Pump Repair Facility-EMD Combined Materials 7,000' I

! Cheswick Ave.,

Cheswick, PA 15024 l 3 37 5809 02 Industnal Radiography Facility Byproduct 18' Cheswick Avenue Cheswick, PA 15024 2

4 Sh%1120 Plutonium Fuels Development Lab SNM 25 Cheswick Ave.

Cheswick, PA 15024 5 SNM-770 Waltz Mill Site Combined 24.051' P.O. Box 158 Materials Madison, PA 15663 0158 1'

6 TR 2 Wae'ingh=2=> Test Reactor' Part 50 13,948' Waltz Mill Site P.O. Box 158 Madison, PA 15663 0158 ,

l 7 SNM-1460 Science and Technology Center Combined Materials 2,900" (Hot Cells), Beulah Road Pittsburgh,PA 15235 8 SNM-47 Science and Technology Center Combined 1,542' Beulah Road Materials Pittsburgh,PA 15235 9 37 00497-15 Forest Hills Site' Combined Materials 750 P.O. Box 855 Pittsburgh, PA 15230 0855 10 SMB-1527 Bloomfield, New Jersey' Sourm Material  !$0 P. O. Box 127 1 Westinghouse Plaza Bloomfield,NJ 07003 Totals 82,368 i

1 Financial assuranz values referenced in (10CFR 30.35,40.36,50.75 and 70.25).

2 Decommissioningcompleted, 3 This is possession only type license.

4 Decommissioning cost is based on an engineering study.

5 Underactivedecommissioning. 02/97

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ATTACHMENT 2 EXECUTED COPY OF AMENDMENT NO.1 TO STANDBY TRUST AGREEMENT

AMENDMENT NO.1 TO STANDBY TRUST AGREEMENT The Standby Trust Agreement entered into as of April 7,1996 by and between Westinghouse Electric Corporation, a Pennsylvania corporation (" Grantor") and Dai-Ichi Kangyo Trust Company of New York, incorporated in the State ofNew York, the

" Trustee" is hereby amended as follows:

1) The Schedule A submitted with the Agreement is replaced with the Schedule A attached to this Amendment No.1.
2) The Schedule B submitted with the Agreement is replaced with the Schedule B attached to this Amendment No.1.

Except as set forth herein, the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Amendment No. I to the Standby Trust Agreement to be executed by their respective duly authorized officers as of this day of January,1997.

ATTEST: WESTIN O ELECTRIC CORPORATION By:

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ATTEST: DAI-ICHIKANGYO TRUST COMPANY OF NEW YORK By: o arje f)7 ,) n 3 77 , --

AGREED TO AND ACCEPTED:

. ATTEST U.S. NUCLEAR RE'GULATORY COMMISSION By:

2 1

I

[

. .. a, SCHEDULE A TO STANDRY TRUST AGREEMENT LISTING OF NRC LICENSES POR WESTINGHOUSE ELECTRIC CQSPORATION TRUST AGREEMENT SCHEDULE FINANCIAL NRC ASSURANCE LICENSE FACILITY TYPE OF VALUE' NUMBER LOCATION AND ADDRESS LICENSE IN S000 i SNM 1107 Nuclear Fuel Fabrication SNM 31,984*

BluffRoad, Columbia, SC 29250 -

2 37 5809 4 1 Pump Repaar Facility-EMD Combined Materials 7,000*

Cheswx:k Ave.,

Cheswick, PA 15024 3 37-5809-02 IndustnalRadiography Facility Byproduct 18' Cheswick Avenue Cheswxi, PA 15024 4 SNM 1120 Plutonium Fuels Development Lab: SNM 25 Cheswick Ave.

Cheswick, PA 15024 5 SNM-770 Waltz Mill Site Combined 24,051' P.O. Box 158 Matenals ,

Madison, PA 156634158 6 %2 Westmghouse Test Reacd Part 50 13,948' l Waltz Mill Site i P.O. Box 158 I Madison, PA 15663 0!$8 7 SNM 1460 Science and Technology Center Combined Materials 2,900' (Hot Cells), Beulah Road Pittsburgh,PA 15235 8 SNM 47 Science and Technology Center Combtned 1,542' Beulah Road Matenals Pittsburgh,PA 15235 9- 37 00497-15 Forest Hills Site' Combined Matermis 750 P.O. Box 855 Pittsburgh, PA 15230 0855 10 SMB-1527 Bloom 6cid, New Jersey' Sourcz Matenal 150 P. O. Box 127 1 Westinghouse Plaza Bloom 5cid,NJ 07003 Totals 82,368 i

l.

1 Financial assurance values referenced in (10CFR 30.35,40.36,50.75 and 70.25).

2 Dec===iamaniar compuest 3 This is possession only type license, 4 n~=====iaming cost is based on an engineering study.

5 Under active !+ - " = =; 02/97 I

t

- .. s SCRFDITII B TO STANDRY TRITST AGRFFMFNT LISTING OF LETTERS OF CREDIT Date Entered (1) Issuing Institution of Irrevocable Letter of Credit

  • Amount April 9,1993 Chemical Bank Delaware 54,380,000.00 P.O. Box 8840 Wilmington, DE 19899 April 9,1993 ABN AMRO Bank N.V. $18,845,000.00 Pittsburgh Branch One PPG Place Suite 2950 Pittsburgh, PA 15222-5400 January 24,1995 The Toronto-Dominion Bank $38,102,000.00 Three First National Plaza 70 West Madison Street Suite 1900 Chicago,IL 60602 I

April 7,1996 The Toronto-Dominion Bank $21,041,000.00 1 l

Three First National Plaza 70 West Madison Street Suite 1900 Chicago,IL 60602 l TOTAL 582,368,000.00 l

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  • BeneSciary of Le*ter of Credit is NRC (1) Automatically renew after 12 months unless prior notice is given.
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ATTACHMENT 3 i

REVISED STANDBY LETTER OF CREDIT l

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THE TORONTO-DOMINION BANK $NU ENT CREDIT f 909 Fannin Street, Suite 1700 l' Houston, Texas 77010 Oste of Amendment February 14,1997

! Houston, Texas; April 7,1996 s.am.y

] Am-ai U.S. Nuclear Regulatory Commission ('NRC")

Westinghouse Electric Corporation 11 Stanwir Street Decommessoning and Regulatory Branch Pittsburgh, PA 15222 Washington, D.Cc20555 Attention: Group Chief )

l A*=as e-N/A

-.m.__..-. 1 n.-  : . .m f increase the principal amount by $777,000.00, from $20,264,000.00 to $21,041,000.00 effective February 14, 1997.

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AI ather terme end condeone remem unchanged The aien merooned Documeneery Cast le seled no the Unform Custome end Preceos for Documordery Credite 0093 Revoian, intemenonet Chemtw of Commerce, Petosaan No. 500).

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ATTACHMENT 4 )

l l DECOMMISSIONING COST ESTIMATE .

FOR LICENSE NO. SNM-47 l

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. APPENDOC F i'

COST ESTMATING TABLES

1. Planning and Preparation Ishlal Wododays Totalfag Isak Suonnvsor Foreman M rdedggl Igg [
1. Preparation of L Documentation for Regulatory Agencies 60 30 90 $92.400
2. Submittal of Decommissioning Plan to NRC when required by 10 CFR 30.36(c)(2),

40.42(c)(2), or 70.38(c)(2)* - - - - - -

Development of

3. Work Plans 60 60 60 180 $166,800
4. Procuring of Special Equip-ment 5 5 10 $9,500 l

l 5. Staff Training 20 20 20 60 $55,800

6. Characterization of RacBologosi ConcRtionof the FacWty (including saa and tannes analysis or ground-water analysis,if applicable) 10 10 10 30 $27,800
7. Other (Sub. SEG) 10 10 10 40" 70 $36,600
8. Total 185 105 130 40" 440 $388,700
  • For assistanos in pivparation of cost estsmate for 10 CFR Part 72, consult NRC Office of Nuclear

- .a ety a,,. .a.o.ua,.s.

" Contractor HP Tedinician, e laborer rate.

F-1 l

. APPENDIX F(Continued)

COST ESTRAATW4G TABLES Istit.2 Unit CostforWorkers Worker Worker l Position Basic Salaries ($/yr) Overhead Rate (%) Cost /manday Cost /hr h_Mrvtsor 1100 137.50 Foreman 800 100.00 Craftsman 440 55.00 Technician 570 71.25 Health PhWW 880 110.00 f Laborer 220 27.50 Clerical Other (Contract) 220 27.50

2. Decontamination and/or Diamantlinn of Radoactive Facitly Components
  • No. Dimensions No. Dimensions Glove Boxes 2 5 (m3) Amount of Floor Space 7 2075 (m2)

Fume Hood 4 8 (m3) Ventilation Ductwork 4 110 (m) l Hot Cens 1 8.5 (.3) Amount of Wa5 Space 2x fir 4150 (m2) 1.ab Benches 17 112 (m) Other(Caling a Floor) 7 2075 (m2)

Sink and Drain 22 132(m) l Tahis 3 Work osye

! Super. Fore- Tee- Crafts- La- Total Task visor man nicians H.P. men borer Total Cost

1. Decon/ Dis-mantle Ma$or l Components and/or Proc-j eseing and 0.5 10 0.25 3 - 24 37.75 $16,613 t

Stor=a= Tanks

2. Decon/ Die-mantle Laboratories, Fume Hoods, Glove Boxes, 4.75 9.5 14.25 6.25 14.25 28.5 77.5 $38,988 h h etc.
  • lndcate whether component is to be decontaminated to unrestricted release levels or packages and disposed of at a low-level weste site.

F-2

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APPENDIX F (Continued)

COST ESTIMATING TABLES Table 3 (Continued)

Work Days Super- Fore- Tech- Crafts La- Total Task visor man nicians H.P. -

borer Total Cost men

3. Decon/ Dis-mantle Major Waste Areas incl. in ' tem No. 1

-Radwaste Areas

- Scrap Recovery

. Areas

- Other

4. Decon/ Dis- mantle Service Facilities

- Maintenance .35.9 71.7 107.5 50 53.5 214.4 534.3 $273,120 Shop

- Decontamination Areas ,

- Ventilation 1 Systems

- Other

5. Decon/ Dis-mantle Waste Treatment

, Factilities and Storage Areas on the Site L (Including exhume and package contaminated soil and tail-l ings,if any) NA NA NA NA NA NA NA

- Fluodde Lagoons j - Nitrate Lagoons

- CaF2 Weste Recovery

- Ground Water Restoration

- Other F-3

,. .. s APPENDIX F(Continued) l COST ESTERATING TABLES Islilt.2(oontinued)

Work Days  ;

Super- Fore- Tech- Crafts- 1.a . Total ,

Task visor man nicians H.P. men borer Total Cost

6. Morutor for compliance, reclean and See l' remonitor, . Item 5, if necessary P. F-5
7. Other (e.g.,

contractor fees) i TaidaA Eaulpment/ Supply Quantity Cost l

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3. Packapina. Shinnina. and Dianomal of Radancdva Wantaa Tatda_5 Unit Waste Volume No. of Type of Cost of Type (ft3) Containers Container Container Total Cost Well Acoroorate 307.6 x $5004t3 $153. ann Decon incidentals 1 825 aan,000 l Pu soins imm toch $11,400 I Sealed Sources $249.257 Total $464,457 l- Taida.A i . Distance Shipped (mges)

Unit oost for shipment ($/mue/ truckload)

Additional charges l- Ovenweight ($4nte)

Surchtrees ($/ mile)

Unit Waste No. of Cost for Distance Transportation Type Shipments Shippino Shipped Surcharge Cost i

Total inciin Table 5 F-4

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  • APPENDtX F(Continued)

COST EST1 MATING TABLES InhlLZ ,

Burial Charges ($/m3)

Surcharges Per container ($)

Disposal ($fm3)

Unit Waste Burial Cost of Burial Type Volume Burial Surcharge Cost Total inc!in Table 5

4. Restoration of Contaminated Arnaq on Faciuty Ground

.Tahitt Work Days Total Task Supervisor Foreman H.P. Clerical Total Cost Bacidill and Restore t Site

)

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5. Final Radation Survey

.Tahlsta work Days

~'

Total I Task Supervisor Foreman H.P. Clerical Tow.i Cost

$360,000 l $Wft2 per SEG performance 9 STC x 90,000 ft2 Total

)

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.. .. s APPENDIX P (Continued)

COST ESTIMATING TABLES I

l

6. M= S'=hlhation. Lona-Term survallina (if applicable)

IAhlt.1R i l

Work Days Total Task Supervisor Foreman H.P. Clerical Total Cost Not Applicable l

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t>"* % g j [p k UNITED STATES s# g NUCLEAR REGULATORY COMMISSION t WASHINGTON, D.C. 2006MWC1

'+9 * * * * * ,o April 23, 1997 l

A. Joseph Nardi l

Supervisory Engineer l

Westinghouse Electronic Corporation ESBU Regulatory Affair P.O. Box 355 Pittsburgh, Pennsylvania 15230-0355

Dear Mr. Nardi:

l

SUBJECT:

RESPONSE TO REVISED FINANCIAL ASSURANCE MECHANISM FOR l DECOMMISSIONING We reviewed the March 6,1997, and April 2,1997, Westinghouse Electric Corporation revised financial assurance documents for decommissioning increasing the total dollar amount to $82,368,000 and intended to assure i

decommissioning costs for licenses: SNM-1107; 37-5809-01; 37-5809-02; SNM-1120; SNM-770; TR-2; SNM-1460; SNM-47; 37-00497-15; and SMB-1527.

Your submittal included a revised Standby Letter of Credit in the amount of

$21,041,000, which is an increase of $777,000 over the original value; a 1 decommissioning cost estimate for License No. SNM-47; Amendment 1 to the Standby Trust Agreement (3 original documents) and your continuing certification of financial assurance statement.

My staff has reviewed your submittals and find themEnclosed in compliance are twowith our decommissioning financial assurance regulations. signed i originals of Amendment 1 to the Standby Trust Agreement for your files. We have retained one signed original.

Should you have' any questions, please contact Mr. Louis Bykoski, at (301) 415-6754.

Sincerely, John W. H. Hickey, Chief Low-Level Waste and Decommissioning Division of Waste Management l Office of Nuclear Material Safety and Safeguards

Enclosures:

As stated

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AMENDMENT NO. l TO STANDBY TRUST AGREEhENT The Standby Tmst Agreement entered into as of April 7,1996 by and between Westinghouse Electric Corporation, a Pennsylvania corporation (" Grantor") and Dai Ichi Kangyo Trust Company of New York, incorporated in the State of New York, the

" Trustee" is hereby amended as follows:

1) The Schedule A submitted with the Agreement is replaced with the Schedule A attached to this Amendment No.1.
2) The Schedule B submitted with the Agreement is replaced with the Schedule B attached to this Amendment No.1.

Except as set forth herein, the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the panies have caused this Amendment No. I to the Standby Trust Agreement to be executed by their respective duly authorized officers as of this day of January,1997.

ATTEST: WESTIN O- ELECTRIC CORPORATION By: .A -

[

q ATTEST: DAI-ICHIKANGYO TRUST COMPANY OF NEW YORK r]n d ) T) A By: 3 ^ ^&

y AGREEDTO AND ACCEPTED:

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l ATTEST U.S. NUCLEAR RE'GULATORY COMh0SSION d kI

  • By: M / 4 y T l

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I FORM OF WELCO FINANCIAL ASSURANCE DOCUMENTS FOR DECOMMISSIONING

1. Continuing Certification of Financial Assurance
2. Standby Trust Agreement
3. Standby letter of Credit 1

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ATTACHMENT I CONTINUING CERTIFICATION OF FINANCIAL ASSURANCE Principal:. Westinghouse Electric Corporation Westinghouse Building Gateway Center Pittsburgh PA 15222 Mailing address correspondence regarding this matter:

Westinghouse Electric Corporation Energy Systems PO Box 355 Pittsburgh PA 15230 NRC license numbers, name and address of each facility:

See Attachment 1, p. 2 (List of Westinghouse licenses covered by this certification)

Issued to: US Nuclear Regulatory Commission Washington DC 20555 -

This is to certify that Westinghouse Electric Corporation is licensed to possess a Production and Utilization Facility,

and By-product. Special Nuclear and Source Materials licenses; and that financial assurance in the amounts prescribed by 10 CFR Parts 30,40,50,51,70 and 72 has been obtained for the purpose of decommissioning. The list oflicenses in Attachment 1, page 2, identifies the specific licenses covered and the amounts of financial assurance provided for each. The total financial assurance amounts to S ,000, an increase of 5 ,000 over previous financial assurance amounts.

Sincerely, Charles W, Pryor, Vice President Westinghouse Electric Corporation Energy Systems Business Unit l

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ATTACHMENT l. PAGE 2 LISTING OF NRC LICENSES FOR WESTINGHOUSE ELECTRIC CORPORATION FINANCIAL NRC ASSURANCE LICENSE FACILITY TYPE OF VALUE' NUMBER LOCATION AND ADDRESS LICENSE IN 5000 1 SNM-1107 Nuclear Fuel Fabrication SNM 31,984*

Bluff Road, Columbia,SC 29250 2 37-5809-01 Pump Repair Facility-EMD Combined Materials 7,000*

Cheswick Ave.,

Cheswick, PA 15024 3 37-5809-02 Industrial Radiography Facility Byproduct 18' Cheswick Avenue Cheswick, PA 15024 4 SNM-1120 Plutonium Fuels Development Lab 2 SNM 25 Cheswick Ave.

Cheswick, PA 15024 5 SNM-770 Waltz Mill Site Combined 24,051' P.O. Box 158 Materials Madison, PA 15663-0158

( 6 TR-2 Westinghouse Test Reactor' Part 50 13,948' l Waltz Mill Site P.O. Box 158 Madison, PA 15663-0158 7 SNM-1460 Science and Technology Center Combined Materials 2,9004 (Hot Cells), Beulah Road Pittsburgh,PA 15235 8 SNM-47 Science and Technology Center Combined 1,542'

, Beulah Road Materials I

Pittsburgh,PA 15235 9 37-00497-15 Forest Hills Site' Combined Materials 750 P.O. Box 855 Pittsburgh, PA 15230-0855 10 SMB 1527 Bloomfield, New Jersey' Source Material 150 P. O. Box 127 1 Westinghouse Plaza Bloomfield,NJ 07003 Totals 82,3686' 1 Financial assurance values referenced in (10CFR 30.35,40.36,50.75 and 70.25).

2 Decommissioning completed.

3 This is possession only type license, 4 Decommissioning cost is based on an engineering study.

5 Under active decommissioning 6 Note total may change based on requirements at the actual time of submittal

l l

l STANDBY TRUST AGREEMENT l . THIS STANDBY TRUST AGREEMENT (the " Agreement") is made and entered into as of the _ day of [the closing date),1997, by and between [ Insert Name of Grantor],

herein referred to as the " Grantor", and (Insert Name of Trustee] incorporated in the State of the " Trustee".

WHEREAS, the U.S. Nuclear Regulatory Commission (NRC), an agency of the U.S.

Government, pursuant to the Atomic Energy Act of 1954 as amended (AEA), has promulgated regulations in Title 10, Chapter i of the Code of Federal Regulations, Part 30,40,50, or 70.

These regulations require that a holder of, or an applicant for, a Part 30,40,50, or 70 license provide assurance that funds will be available when needed for required decommissioning I

, activities; and )'

l i WHEREAS, the Grantor has elected to use letters of credit to provide all of such j financial assurance for the facilities identified herein; and i WHEREAS, when payment is made under the letters of credit, this standby trust shall be used for the receipt of such payment; and I

WHEREAS, the Grantor, acting through its duly authorized officers, has selected the l Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee, i NOW, THEREFORE, the Grantor and the Trustee agree as follows:

j l Section 1. Definitions. As used in this Agreement: i (a) The term " Grantor" means the grantor, as or on behalf of the NRC licensee, who enters into this Agreement for the benefit of the NRC and any successors or assigns of the Grantor.

(b) The term " Trustee" means the trustee who enters into this Agreement and any l successor Trustee.

l Section 2. Costs of Decommissioning. This Agreement pertains to the costs of decommissioning the materials and activities identified in the attached Schedule A issued l pursuant to 10 CFR Part 30,40,50, or 70.

! Section 3. Establishment of Fund. The Grantor and the Trustee hereby establish a standby trust fund (the " Fund") for the benefit of the NRC. The Grantor and the Trustee intend that no third party has access to the Fund except as provided herein.

1 f Section 4. Payments Constituting the Fund. Payments made to the Trustee for the l Fund shall consist of cash and Eligible Securities. The Fund is initially unfunded.

Payments made to the Trustee for the Fund shall consist of payments made by the issuer of the Irrevocable Letters of Credit pursuant to its terms, which are described in Schedule i

B attached hereto. Such property and any other property subsequently transferred to the Trustee are referred to as the " Fund", together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund j shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not j be responsible nor shall it undertake any responsibility for the amount of, or adequacy of ,

I the Fund, nor any duty to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the NRC. f 4

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3 1

l Section 5. Payment for Required Activities Specified in the Plan. The Trustee shall make payments from the Fund to the Grantor upon presentation to the Trustee of the following:

l

a. A certificate duly executed by the Secretary of the Grantor attesting to the occurrence of the events, and in the form set forth in the Specimen Certificate attached hereto as Schedule C, and 1 l

l b. A certificate executed by the Grantor attesting to the following conditions:

i (1)(1) that decommissioning is proceeding pursuant to an NRC-approved plan.

(2) that the fun'ds withdrawn will be expended for activities undertaken pursuant to that plan, and (3) that the NRC has been given 30 days' prior notice of the Grantor's intent to withdraw funds from the Fund.

No withdrawal from the Fund can exceed 10% of the outstanding balance of the  :

Funds applicable to a particular license, without written approval from the NRC.  !

In the event of a default or inability to direct decommissioning activities, the Trustee shall make payments from the Fund as the NRC shall direct in writing, to provide i for the payment of the costs of required activities covered by this Agreement. The l i

Trustee shall reimburse the Grantor or other persons as specified by the NRC, or State agency, from the Fund for expenditures for required activities in such amounts as the NRC, or State agency, shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the NRC specifies in writing. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.

Section 6. Trust Management. l The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single Fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the

l. .provis ions ofthis sect i on. nIi nvest ng, i i re nvest ng, i exc ang h ng, i selling and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, prudence and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; except that:

(a) Securities or other obligations of the Grantor, or any other owner or operator of l

the facilities, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15 U.S.C. 80A-2(a)), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State government; (b) The Trustee is authorized to invest the Fund in Eligible Securities as hereinafter defined. Eligible Securities shall be securities or other obligations of the Federal Government, i.e., GNMA, FNMA, and FHLM bonds and certificates or State and Municipal bonds rated BBB or higher by Standard & Poor's or Baa or higher by Moody's Investment Services.

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,....sene L ___ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _

Section 7. Express Powcrs of Trustee. Without in any way limiting the powers and discretion conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:

(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale, as necessary to allow duly authorized withdrawals or to reinvest in Eligible Securities at the direction of the Grantor.

(b) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; (c) To register any securities held in the Fund in the name of the Grantor, and to hold any security in bearer form or in book entry, to reinvest interest payments and funds from matured and redeemed instruments in Eligible Securities, to file proper forms concerning securities held in the Fund in a timely fashion with appropriate government agencien or to deposit or arrange for the deposit of such securities in a qualified central depository, or to deposit or arrange for the deposit of any securities issued by the U.S. Government, or any agency or instrumentality thereof, with a Federal Reserve Bank in book entry form, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund.

(d) To compromise or otherwise adjust all claims in favor of or against the Fund.

Section 8. Taxes and Expenses. All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund. All other expenses incurred by the Trustee in connection with the administration of this standby trust, including fees for legal services rendered to the Trustee, the compensation of the Trustee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid from the Fund.

Section 9. Annual Valuation. After payment has been made into the Fund, the Trustee shall annually, at least 30 days before the anniversary date of receipt of payment into the Fund, furnish to the Grantor and to the NRC a statement confirming the value of the Fund. Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. The failure of the Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and the NRC, or State agency, shall constitute a conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the statement.

Section 10. Advice of Counsel. The Trustee may from time to time consult with counsel, who may be counsel to the Grantor, with respect to any question arising as to the l construction of this Agreement or any action to be taken hereunder. The Trustee shall be i fully protected, to the extent permitted by law, in acting on the advice of counsel.

Section 11. Trustee Compensation. The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing from time to time with the .

Grantor.

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Section 12. Successor Trustee. Upon 90 days notice to the NRC, or State agency, the Trustee may resign; upon 90 days notice to NRC, or State agency, and the Trustee, the

. . . . , m .-

L .

l l Grantor may replace the Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a successor Trustee and this successor accepts the appointment. The successor Trustee shall have the same powers and duties as those l conferred upon the Trustee hereunder. Upon the successor Trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor Trustee the funds and properties then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions. The successor Trustee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the NRC or State agency, and the present Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts contemplated by this Section shall be paid as provided in Section 8.

Section 13. Instructions to the Trustee. All orders, requests, and instructions by the Grantor to the Trustee shall be in writing, signed by such persons as are signatories to this Agreement or such other designees as the Grantor may designate in writing. The Trustee shall be fully protected in acting in accordance with such orders, requests and instructions. If the NRC or State agency issues orders, requests or instructions to the Trustee, these shall be in writing, signed by the NRC, or State agency, or their designees, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests and instructions. The Trustee shall have the right to assume, in the ,

absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor, the NRC, or State agency, hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and/or the NRC, or State agency, except as provided for herein.

Section 14. Amendment of Agreement. This Agreement may be amended by an instrument in writing executed by the Grantor, the Trustee and the NRC, or State agency, er by the Trustee and the NRC or State agency, if the Grantor ceases to exist.

Section 15. Irrevocability and Termination. Subject to the right of the parties to amend this Agreement as provided in Section 14, this trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee, and the NRC or State agency, or by the Trustee and the NRC or State agency, if the Grantor ceases to exist. Upon termination of the trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor or its successor.

Section 16. Immunity and Indemnification. The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this trust, or in carrying out any directions by the Grantor, the NRC, or State agency, issued in accordance with this Agreement. The Trustee shall be i indemnified and saved harmless by the Grantor or from the Fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor fails to provide such defense.

Section 17. This Agreement shall be administered, construed, and enforced according to the laws of the State of 1

i

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co A Section 18. Interpretation and Severability. As used in this Agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each section of this Agreement shall not affect the interpretation or the legal elficacy of this Agreement. If any part of this Agreement is invalid, it shall not affect the remaining provisions which will remain valid and enforceable.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by the respective officers duly authorized and the incorporate seals to be hereto affixed and attested as of the dt.te first written above.

ATTEST: [lNSERT NAME OF GRANTOR]

By: l

Title:

ATTEST: llNSERT NAME OF TRUSTEE l By:

Title:

3

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SCHEDULE A TO STANDBY TRUST AGREEMENT LISTING OF NRC LICENSES FOR WESTINGHOUSE ELECTRIC CORPORATION TRUST AGREEMENT SCHEDULE FINANCIAL NRC ASSURANCE LICENSE FACILITY TYPE OF VALUE' NUMBER LOCATION AND ADDRESS LICENSE IN $000 1 SNM 1107 Nuclear Fuel Fabrication SNM 31,984*

Bluff Road, Columbia,SC 29250 2 37-5809-01 Pump Repair Facility-EMD Combined Materials 7,000' Cheswick Ave.,

Cheswick, PA 15024 3 37-5809-02 Industrial Radiography Facility Byproduct i 8' Cheswick Avenue Cheswick, PA 15024 4 SNM ll20 Plutonium Fuels Development Lab 2 SNM 25 Cheswick Ave.

Cheswick, PA 15024 5 SNM-770 Waltz Mill Site Combined 24,051' P.O. Box 158 Materials Madison, PA 15663-0158 6 TR 2 Westinghouse Test Reactor' Part 50 13,948' Waltz Mill Site P.O. Box 158 Madison, PA 15663-0158 7 SNM-1460 Science and Technology Center Combined Materials 2,900' (Hot Cells), Beulah Road Pittsburgh, PA 15235 8 SNM-47 Science and Technology Center Combined 1,542' Beulah Road Materials Pittsburgh, PA 15235 9 37 00497 15 Forest liills Site' Combined Materials 750 P.O. Box 855 Pittsburgh, PA 15230-0855 10 SMB-1527 Bloomfield, New Jersey 5 Source Material 150 P. O. Box 127 1 Westinghouse Plaza Bloomfield,NJ 07003 Totals 82,368' I Financial assurance values referenced in (10CFR 30.35,40.36,50.75 and 70.25).

2 Decommissioning completed.

3 This is possession only type license.

4 Decommissioning cost is based on an engineering study.

5 Under active decommissioning -

6 Note total may change based on requirements at the actual time of submittal l

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. SCHEDULE B TO STANDBY TRUST AGREEMENT LISTING OF LETTERS OF CREDIT

. Date Entered (1) Issuing Institution of irrevocable Letter of Credit

  • Amount April 9,1993 Chemical Bank Delaware $4,380,000.00 P.O. Box 8840 Wilmington,DE 19899 April 9,1993 ABN AMRO Bank N.V. $18,845.000.00 Pittsburgh Branch One PPG Place Suite 2950 Pittsburgh, PA 15222-5400 January 24,1995 The Toronto-Dominion Bank $38,102,000.00 Three First National Plaza 70 West Madison Street Suite 1900 Chicago,IL 60602 April 7.1996 The Toronto-Dominion Bank $21,041,000.00 Three First National Plaza 70 West Madison Street Suite 1900 I Chicago,IL 60602 TOTAL $82,368,000.00
  • Beneficiary of Letter of Credit is NRC (1) Automatically ren'ew after 12 months unless prior notice is given.

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A SCIIEDULE C TO STANDBY TRUST AGREEMENT SPECIMEN CERTIFICATE OF EVENTS

[ Insert Name and Address of Trustee]

Attention:. Corporate Trust Department Gentlemen:

In accordance with the terms of the Agreement with you dated ,1997,1, General Manager of[ insert name of Grantor], hereby certify that the following events have occurred:

1. Westinghouse Electric Corporation is required to commence the decommissioning ofits facility located at [ insert location of facility] (hereinafter called the decommissioning).
2. The plans and procedures for the commencement and conduct of the decommissioning have been approved by the United States Nuclear Regulatory Commission, or its successor, on (copy of approval attached).
3. The Board of Directors of Westinghouse Electric Corporation has adopted the attached resolution authorizing the commencement of the decommissioning.

By:

Name Title Date Secretary

[ SEAL]

l l l j

4 SCHEDULE C (CONT.) TO STANDBY TRUST AGREEMENT CERTIFICATE OF RESOLUTION I, - , do hereby certify that I am Secretary of Westinghouse Electric Corporation, a Pennsylvania Corporation, and that the resolution listed below was duly adopted at a meeting of this Corporations' Board of Directors on

,19 In WITNESS WilEREOF, I have hereunto signed by name and affixed the seal of this Corporation this day of- ,19 .

Secretary RESOLVED, that this Board of Directors hereby authorizes the Chairman, or such other employee of the Company as he may designate, or such other employee of the Company as he may designate, to commence decommissioning activities at [ insert name of facility) in accordance with the terms and conditions described to this Board of Directors at this meeting and with such other terms and conditions as the Chairman shall approve with and upon the advice of Counsel.

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[ FORM OF STANDBY LETTER OF CREDIT]

IRREVOCABLE STANDBY LETTER OF CREDIT NO.

Expiry: I U.S. Nuclear Regulatory Commission ("NRC")

Decommissioning and Regulatory Branch Washington. D.C. 20555 Attention: Group Chief

Dear Sir or Madam:

We hereby establish our Irrevocable Standby Letter of Credit No. in your favor, at

" the request and for the account of , up to the aggregate amount of U.S. Dollars and 00/100 available upon presentation of:

1) your sight draft, bearing reference to the Letter of Credit No. ,and
2) your signed statement reading as follows: I certify that the amount of the draft is payable pursuant to regulations issued under the authority of the U.S. Nuclear Regulatory Commission.

This Letter of Credit is issued in accordance with regulations issued under the authority of the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974. The NRC has promulgated regulations in Title 10, Chapter 1 of the Code of Federal Regulations, Parts 30,40, 50 or 70, (the

" Applicable Regulations") which require that a holder of, or an applicant for, a license issued under the Applicable Regulations, provide assurance that funds will be available when needed for decommissioning.

. This Letter of Credit is effective as of ,1997 and shall expire on

, but such expiration date shall be automatically extended for a period of at

- least 1 year on and on each successive expiration date, unless, at least 90 days before the current expiration date, we notify both you and , by certified mail, as shown on the signed return receipts.

if is unable to secure alternative financial assurance to replace this letter of Credit within 30 days of notification of cancellation, the NRC may draw upon the full value of this Letter of Credit prior to cancellation.

' 279422.1: DRAFT 8/14/97 (1.23PM) l w _ _ _ _ _ _ _ - . - - _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _

The [ Letter of Credit Bank] shall give immediate notice to and the "NRC" of any notice received or action filed alleging (1) the insolvency or bankruptcy of the

[ Letter of Credit Bank], or (2) any violat. ions of regulatory requirements that could result in suspension or revocation of the [ Letter of Credit Bank's] charter.

l The [ Letter of Credit Bank] also shall give immediate notice if, for any reason, it becomes unab'3 to fulfill it's obligations under the Letter of Credit No.

Whenever this Letter of Credit is drawn on under and in compliance with the terms of this Letter of Credit, the [ Letter of Credit Bank] shall duly honor such draft upon it's presentation to us within 30 days, and we shall deposit the amount of the draft directly into the Standby Trust Fund of in accordance with the NRC's instructions.

Each draft must bear on it's face the clause: " Drawn under Letter of Credit No.

dated ,1997 and the total of this draft and all other drafts previously drawn under this Letter of Credit does not exceed $ .

. This Letter of Credit is subject to the Uniform Customs and practice for Documentary Credits (1993 Revision, International Chamber of Commerce, Paris, France, Publication No. 500).

[ LETTER OF CREDIT BANK]

BY:

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l 279422.l: DRAFT 8/14/97 (1:23PM)

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I l

4 LETTER OF WESTINGHOUSE ELECTRIC COMPANY CONFIRMING AGREEMENT TO ASSUME COMMITMENTS, RESPONSIBILITIES AND LIABILITIES EXHIBIT E l l i

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l

, s EXHIBIT E WESTINGHOUSE ELECTRIC COMPANY 11 Stanwix Street Pittsburgh, Pennsylvania 16222-1384 August 15, 1997 U. S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Attention: Dr. Carl J. Paperiello, Director Office of Nuclear Material Safety and Safeguards Mr. Samuel J. Collins, Director Office of Nuclear Reactor Regulation Mr. Ronald D. Hauber, Director Office of International Programs Division of Nonproliferation, Exports and Multilateral Relations ,

Mr. Charles J. Haughney, Acting Director Spent Fuel Project Office Mr. Hubert J. Miller, Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA - 19406-1415 Mr. Luis A. Reyes, Regional Administrator, Region II U.S. Nuclear Regulatory Commission Atlanta Federal Center, 23 T85 61 Forsyth Street, S.W.

Atlanta, GA 30303-3415 Re: Applications by Westinghouse Electric Corporation for Transfer of NRC Licenses - Commitment to Assume Responsibilities and Liabilities Gentlemen:

This letter is in reference to the applications of Westinghouse Electric Corporation, a corporation founded in 1886 under the laws of the Commonwealth of Pennsylvania

.(" Westinghouse"'or " Westinghouse (1886)"), requesting the transfer and amendment of the i

EXHIBIT E U.S. Nuclear Regulatory Commission August 15, 1997 Page licenses, quality assurance program approvals, and the certificates of compliance (licenses, approvals and certificates) held by Westinghouse and issued by the U.S. Nuclear Regulatory Commission ("NRC") or certain Agreement States to a separate corporation currently called Westinghouse Electric Company ("WELCO"). The transfers and amendments are in connection with a series of transactions in which the Westinghouse (1886) industrial businesses, with the exception of its mobile transport refrigeration equipment business and certain other designated businesses, will be transferred to WELCO. WELCO was

-incorporated on July 17,1997 as Westinghouse Power Company, was renamed Westinghouse Electric Company on August 13,1997 and will be renamed Westinghouse Electric Corporation (" Westinghouse (1997)") on the closing date of the transactions. (Also on the closing date, the name of Westinghouse (1886) will be changed to CBS Corporation).

The purpose of this letter is to confirm that WELCO, as transferee of the licenses, approvals and certificates, agrees to assume the commitments, responsibilities and liabilities attendant to the facilities being transferred, and more specifically agrees to:

1. Abide by all commitments and representations previously made to the NRC or the applicable Agreement State by Westinghouse (1886), including but not limited to:

maintaining decommissioning records required by 10 CFR 30.35(g),40.36(f),

50.75(g), and 70.25(g), implementing decontamination activities and decommissioning -

of the facilities and sites being transferred; and maintaining financial assurance mechanisms for decommissioning;

2. Accept full liability for decommissioning and decontamination of the facilities and sites being transferred, including maintaining adequate resources to fund decommissioning as required by the NRC or the applicable Agreement State. As of the closing date, adequate resources to fund decommissioning will be provided by a Standby Trust Agreement with Associated Standby Letters of Credit in amounts r===y to comply with NRC regulatory requirements. (Seg Westinghouse Applications and Exhibits C and D thereto);

1

3. Accept full responsibility for all open NRC or applicable Agreement State )

inspection items, including completion of related corrective actions, and/or any resulting enforcement actions; and

J

  • F EXHIBIT E

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U.S. Nuclear Regulatory Commission August 15, 1997.

Page 7

4. Abide by all constraints, conditions, requimments, representations and commitments identified in the existing licenses, quality assurance program approvals, and certificates of compliance issued by the NRC or the applicable Agreement State.

l.

l Should there be any questions regarding our commitments as transferee of the licenses, approvals and certificates, please contact:

Mr. A. Joseph Nardi, License Administrator Regulatory Affairs Energy Systems Business Unit Telephone: (412) 374-4652 Fax: (412) 374-3357 E-Mail: nardiaj@ westinghouse.com

- Very tmly yours, WESTINGHOUSE ELECTRIC COMPANY By: vm ini h u/

Ernest H. Drew President and Chief Executive Officer - +

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WESTINGHOUSE ELECTRIC CORPORATION AND WESTINGHOUSE ELECTRIC COMPANY MEMORANDUM OF UNDERSTANDING REGARDING TRANSFERS AND AMENDMENTS, RESPONSIBILITIES AND LIABILITIES J

l EXHIBIT F 1

i I

i l

y s MEMORANDUM OF UNDERSTANDING 1

\

MEMORANDUM OF UNDERSTANDING entered into this 15th day of August,1997 between the Westinghouse Electric Corporation, a corporation founded in 1886 under the laws of the Commonwealth of Pennsylvania (" Westinghouse" or " Westinghouse (1886)") and Westinghouse Electric Company, a corporation incorporated in 1997 under the laws or the Commonwealth of Pennsylvania ("WELCO").

WHEREAS in connection with a planned series of transactions, Westinghouse (1886) will transfer certain ofits industrial businesses to WELCO, a newly formed separate company; and WHEREAS the name of Westinghouse Electric Company will be changed to Westinghouse Electric Corporation (" Westinghouse (1997)") on the closing date of the transactions effecting the aforesaid transfer (and the name of Westinghouse (1886) will be cinnged to CBS Corporation); and WHEREAS, in connection with the transfer, Westinghouse (1886) intends to file applications to transfer and amend those U. S. Nuclear Regulatory Commission ("NRC") and Agreement State licenses, quality assurance program approvals, certificates of compliance and other NRC approvals (" licenses, approvals and certificates") held by Westinghouse (1886) and related to l

the industrial businesses being transferred' to Westinghouse (1997);

' ' A Westinghouse (1886) subsidiary, Bay County Energy Systems, Inc., which manages the operation of the Bay County Resource Recovery Facility, will not be transferred to WELCO and '

will continue to hold an Agreement State materials license (scaled source) issued by the State of Florida.

Page 1 of 2 l

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l y .~o NOW THEREFORE, in connection with the applications for transfer of licenses to be filed with the NRC and applicable Agreement States, Westinghouse (1886) and WELCO jointly:

1. Agree to (i) the transfer and amendment of the licenses, approvals and certificates, issued by the NRC or Agreement States, currently held by Westinghouse (1886), and related to the industrial businesses being transferred from Westinghouse (1886) to WELCO, (ii) the change in ownership and control of the licensed activities and (iii) the conditions of the transfers;
2. Stipulate that Westinghouse (1886) has made WELCO aware of all currently open NRC or Agreement State inspection items and the responsibility of WELCO for possible enforcement actions thereunder upon the transfer of the licenses; and that WELCO is so informed; and
3. Agree that Westinghouse (1886) will make Westinghouse (1997) aware of all open inspection' items as of the closing date and the responsibility of Westinghouse (1997) for possible enforcemen, actions thereunder; and that Westinghouse (1997) will be so informed.

WESTINGH SE ELECTR CORPORATION By: lasin/

CharTes W. Pryor Vice President

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WESTINGHOUSE ELECTRIC COMPANY l By: k ~ ~

An e /

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Emest H. Drew '

l President and Chief Executive Officer l

Page 2 of 2

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