ML18197A080

Irrevocable Standby Letter of Credit for the Aerotest Radiography and Research Reactor

ML18197A080
Person / Time
Site:	Aerotest
Issue date:	07/10/2018
From:	Slaughter D Aerotest
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML18197A080 (2)

Text

AEROTEST OPERATIONS, INC.

3455 FOSTORIA WAY* SAN RAMON, CA 94583 * (925) 866-1212

• FAX (925) 866-1716 July 10, 2018 ATTENTION: Document Control Desk U.S. Nuclear Regulatory Commission White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 AEROTEST RADIOGRAPHY AND RESEARCH REACTOR DOCKET NO. 50-228/LICENSE NO. R-98.

SUBJECT:

AEROTEST OPERATIONS, INC. - IRREVOCABLE STANDBY LETTER OF CREDIT FOR THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR Ladies and Gentlemen:

I formally request 120 day extension beyond the initial response deadline given for responding to NRC Letter (ML18054A077) dated March 8, 2018. The letter identifies two apparent substantive differences between Aerotest's irrevocable standby letter of credit, dated July 14, 2017, and RG 1.159.and requests Aerotest to explain how it will conform to RG 1.159. The proposed changes by Aerotest were submitted to Bank of the West (Bo W) for their acceptance and corrective action.

Aerotest's recently received alternative text for the LOC proposed by BoW; I determined that their response concerning insolvency notification to the applicant and beneficiary was not adequate. A follow up revision (referencing RG 1.159 Appendix A-5) was resubmitted to BoW and is currently under review.

The suggested second point to be incorporated into our letter of credit is about notification of the viability ofBoW. It is understood that the applicant or beneficiary will not benefit (relocate or draw funds) from BoW's insolvency/bankruptcy. For improved clarification of timely notification, the word "immediate" is being replaced with the phase "within 30 days". (The word "immediate" is defined in the Dodd-Frank Act as "within 30 days")

Possible language for Point 2: "We shall give notice within 30 days to the applicant and the US NRC of any notice received or action filed alleging (1) the insolvency or bankruptcy of the financial institution or (2) any violations of regulatory requirements that could result in suspension or revocation of the bank's charter or license to do business. We also shall give notice if we, for any reason, become unable to fulfill our obligation under the letter of credit."

I am still awaiting BoW acceptance or alternate language. In the event they cannot accept the terms as needed, a second banking institution has already agreed to the terms and is preparing a LOC if an institutional change is necessary.

Should you have any questions or require additional information regarding this submission, please contact AO President David M. Slaughter, Ph.D. at (801) 631 5919 or dmsraven@gmail.com I declare under penalty of perjury that the statements above are correct and truthful.

Sincet~ly yours,

'\"'-

~:) ....

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David M.'Slaughter, Ph.D.

President and Reactor Admin.

Aerotest Operations, Inc.