ML20149M300

Responds to 961028 Request Re Decommissioning Funding Assurance Review of Proposed Changes to Reed College Ltr of Credit & Standby Trust Agreement.Informs That Proposed Ltr of Credit Satisfies Requirements of 10CFR50.75 & Acceptable

ML20149M300
Person / Time
Site:	Reed College
Issue date:	12/10/1996
From:	Mendonca M NRC (Affiliation Not Assigned)
To:	Mcfarlane E REED COLLEGE, PORTLAND, OR
References
TAC-M79578, NUDOCS 9612160065
Download: ML20149M300 (2)

Text

_

- , ,, I' December 10, 1996 Mr. Edwin 0. McFarlane Vice President / Treasurer  !

Reed College 3203 SE Woodstock Blvd.

Portland, Oregon 97202 ,

SUBJECT:

DECOMMISSIONING FUNDING ASSURANCE REVIEW 0F PROPOSED CHANGES TO REED COLLEGE LETTER OF CREDIT AND STANDBY TRUST AGREEMENT (TAC NO. M79578)

Dear Mr. McFarlane:

This letter is in response to a October 28, 1996, letter from Stoel Rives, LLP, attorneys that you requested to contact us on the subject matter. We have reviewed the proposed letter of credit and associated standby trust agreement (LOC) between Reed College and Wells Fargo Bank, N.A. This proposed LOC satisfies the decommissioning funding assurance requirements of 10 CFR 50.75, and, therefore, is acceptable.

The proposed LOC allows the U.S. Nuclear Regulatory Commission (NRC) to draw 1 upon it in the event of non-renewal of the LOC or other triggering event  !

without Wells Fargo Bank being required to make the subjective determination that Reed College had been unable to secure alternative financial assurance as required under 10 CFR 50.75. As an enhancement to the LOC, we would request that you have language added to limit NRC signature authority for drawing on this decommissioning funding assurance instrument. The purpose of this request is to provide added assurance that there will be no unauthorized use of the LOC. Therefore, although there is no requirement on you in this regard and internal NRC controls should be adequate to address this potential problem, we request that NRC signature authority on the LOC be limited to the Director of the Office of Nuclear Reactor Regulation (NRR) or the Deputy Director of NRR.

Sincerely, ORIGINAL SIGNED BY Sy Weiss for Marvin M. Mendonca, Senior Project Manager 9612160065 961210 n wer Rea@s and DecoMsskning ,

PDR ADOCK 05000288 Project Directorate P PDR Division of Reactor Program Management Office of Nuclear Reactor Regulation cc: 'Mr. Stephen G. Frantz, RC Mr. Richard D. Bach, SIC

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Mr. Edwin 0. McFarlane Vice President / Treasurer Reed College j 3203 SE Woodstock Blvd. '

Portland, Oregon 97202

SUBJECT:

DECOMMISSIONING FUNDING ASSURANCE REVIEW 0F PROPOSED CHANGES TO REED l COLLEGE LETTER OF CREDIT AND STANDBY TRUST AGREEMENT (TAC  !

NO. M79578)

Dear Mr. McFarlane:

This letter is in response to a October 28, 1996, letter from Stoel Rives, LLP, attorneys that you requested to contact us on the subject matter. We have reviewed the proposed letter of credit and associated standby trust agreement (LOC) between Reed College and Wells Fargo Bank, N.A. This proposed LOC satisfies the decomissioning funding assurance requirements of 10 CFR 50.75, and, therefore, is acceptable.

The proposed LOC allows the U.S. Nuclear Regulatory Comission (NRC) to draw upon it in the event of non-renewal of the LOC or other triggering event without Wells Fargo Bank being required to make the subjective determination that Reed College had been unable to secure alternative fir.ancial assurance as required under 10 CFR 50.75. As an enhancement to the LOC, we would request that you have language added to limit NRC signature authority for drawing on ,

this decomissioning funding assurance instrument. The purpose of this  ;

request is to provide added assurance that there will be no unauthorized use of the LOC. Therefore, although there is no requirement on you in this regard and internal NRC controls should be adequate ta address this potential problem, we request that NRC signature authori ; on the LOC _be limited to the Director of the Office of Nuclear Reactor Reg > ation (NRR) or the Deputy Director of NRR.

Sin erely, pr~ %k Marvin M. Mendonca, Senior Project Manager Non-Power Reactors and Decomissioning Project Directorate ,

Division of Reactor Program Management Office of Nuclear Reactor Regulation cc: Mr. Stephen G. Frantz, RC Mr. Richard D. Bach, SIC l

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