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| {{Adams
| | #REDIRECT [[NUREG/CR-1754, Forwards Request for Addl Info to Enable NRC to Complete Final Action on Decommissioning Funding Plan & Ltr of Credit Transmitted Via 900713,920327 & 0402 Ltrs.Plan Reviewed Against Criteria in Reg Guide 3.66 & NUREG/CR-1754]] |
| | number = ML20059A808
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| | issue date = 10/21/1993
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| | title = Requests Listed Info within 120 Days Supporting Decommissioning Funding Plan & Parent Company Guarantee. Forwards Reg Guide 3.66 & NUREG/CR-1754.W/o Encl
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| | author name = Lamastra M
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| | author affiliation = NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
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| | addressee name = Boyd C
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| | addressee affiliation = BABCOCK & WILCOX CO.
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| | docket = 07000824
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| | license number =
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| | contact person =
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| | case reference number = RTR-NUREG-CR-1754, RTR-REGGD-03.066, RTR-REGGD-3.066
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| | document report number = TAC-L21624, NUDOCS 9310270132
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| | document type = CORRESPONDENCE-LETTERS, OUTGOING CORRESPONDENCE
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| | page count = 3
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| | project = TAC:L21624
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| | stage = Other
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| }}
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| =Text=
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| {{#Wiki_filter:Docket 70-824
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| . License SNM-778 OCT 211993 Mr. Charlie C. Boyd, Jr.
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| Licensing & Compliance Officer Babcock & Wilcox Nuclear Environmental Services Division Lynchburg Technology Center P.O. Box 11165 Lynchburg, VA 24506-1165
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| ==Dear Mr. Boyd:==
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| ==SUBJECT:==
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| DECOMMISSIONING FUNDING PLAN AND PARENT COMPANY GUARANTEE r
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| (TAC NO. L21624)
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| We have completed our review of the Decommissioning Funding Plan and Parent Company Guarantee provided by your {{letter dated|date=August 27, 1992|text=letter dated August 27, 1992}}. We have concluded that additional information is needed before final action can be taken (see enclosure).
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| We reviewed your plan against Regulatory Guide 3.66,
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| " Standard Format and Content of Financial Assurance Mechanisms Required for Decommissioning Under 10 CFR Parts 30, 40, 70, and 72," and NUREG/CR-1754, "lechnoloav. Safety and Costs of Decommissionina Reference Non-Fuel-Cycle Nuclear Facilities." Copies of Regulatory Guide 3.66 and NUREG/CR-1754 are enclosed for your use.
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| Please submit the requested information (six copies) within 120 days of the date of this letter.
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| Please reference the above TAC No. in future correspondence related to this request.
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| If you have any questions, please contact me at (301) 504-3416.
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| bhlGitMLSIGNED BY Michael A. Lamastna Licensing Section 2 l
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| Licensing Branch Division of Fuel Cycle Safety and Safeguards, NMSS
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| | |
| ==Enclosures:==
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| 1.
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| Comments on Decommissioning Funding Plan and Parent Company Guarantee 2.
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| Regulatory Guide 3.66 3.
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| NUREG/CR-1754 fl Distribution w/ encl.1 (Control No. 2405) | |
| Docket 70-824 PDR NRC File Center NMSS R/F
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| NAME MNf
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| .DATE 10/2//93 4
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| M C = COVER F<= CCVER & ENCLOSURE N = NO COPY 9310270132 931021 i'
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| I,'
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| PDR ADOCK 07000824 y:.
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| PDR U
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| {
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| =
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| a Request for Additional Information i
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| Application Dated August 27, 1992 i
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| Babcock & Wilcox (B&W) l Lynchburg Technology Center Docket 70-824 l
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| i
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| )
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| Please provide the following information:
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| i 1.
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| The preamble to the decommissioning rule (Federal Reaister, Vol.
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| l 53, No. 123, June 27, 1988, Pages 24035-24036) states that a parent guarantee is allowed only when the parent company provides "an independent commitment beyond that of the licensee to expend funds." Our review of financial information on the parent, Babcock & Wilcox Investment Company (BWICO), indicates that nearly 1
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| all of the parent's financial strength derives from the licensee, Babcock & Wilcox Company. Accordingly, an adverse performance by B&W could significantly diminish the financial strength' of BWICO.
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| l Since our analysis indicates BWICO cannot provide an independent
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| {
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| commitment of funds (beyond the licensee), BWIC0 appears to be an-l unacceptable parent company for purposes of compliance with 10 CFR Part 30, and you should submit an alternate financial assurance mechanism, or provide further information indicating that BWICO can provide a parent guarantee based on the parent's financial strength independent of licensee-subsidy assets.
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| 2.
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| While your decommissioning cost estimate generally followed the i
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| cost estimating tables in Appendix F of Regulatory Guide 3.66, the cost estimate did not include sufficient detail to allow an i
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| adequate evaluation of cost estimate.
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| In particular, the i
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| submission did not include the following information-l Description of the facility, the activities that occur l
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| a.
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| at the facility, and the levels of contamination that may be present; b.
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| The number and dimension of the laboratory or facility components that will need to be decontaminated (such as fume hoods, glove boxes, laboratory benches, or ductwork), as addressed in table 2 of the cost estimate (" Equipment To Be Decontaminated"); and i
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| c.
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| The amount of contaminated materials generated during decommissioning and the associated cost of disposing these materials.
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| Please provide the above additional information.
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| l
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| ,,. ~.
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| .m.~
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| ~ _
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| +-,}}
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