ML13137A338

Texas A&M University - Financial Update Request for Additional Information Regarding the Review of the Texas A&M University AGN-201M Research Reactor License Renewal

ML13137A338
Person / Time
Site:	Texas A&M University
Issue date:	06/06/2013
From:	Patrick Boyle Research and Test Reactors Licensing Branch
To:	Hassan Y Texas A&M Univ
Boyle, P
References
TAC ME1588
Download: ML13137A338 (6)

Text

June 6, 2013

Dr. Yassin Hassan

Department Head- Nuclear Engineering

Texas A&M University

337 Zachry Engineering Center College Station, TX 77843-3133

SUBJECT:

TEXAS A&M UNIVERSITY - FINANCIAL UPDATE REQUEST FOR ADDITIONAL INFORMATION REGARDING THE REVIEW OF THE TEXAS A&M

UNIVERSITY AGN-201M RESEARCH REACTOR LICENSE RENEWAL (TAC

NO. ME1588)

Dear Dr. Hassan:

The U. S. Nuclear Regulatory Commission (NRC) is continuing its review of your application for

the renewal of Facility Operating License No.

R-23 for the Texas A&M University AGN-201M reactor dated July 22, 1997, and supplemented, in part, by your letter dated June 30, 2011.

During the course of the NRC staff review, some of the information provided by your letter dated

June 30, 2011, has become outdated and needs to reflect the current financial status of your

facility.

Please provide responses to the enclosed request for additional information within 30 days of

the date of this letter. In accordance with Title 10 of the Code of Federal Regulations , your response must be executed in a signed original under oath or affirmation. Information included

in your response that is considered security, s ensitive, or proprietary, that you seek to have withheld from the public, must be marked in accordance with 10 CFR 2.390, "Public inspections, exemptions, requests for withholding." Following receipt of the additional information, we will

continue our evaluation of your renewal request.

If you have any questions regarding this review, please contact me at (301) 415-3936 or by

electronic mail at Patrick.Boyle@nrc.gov.

Sincerely, /RA/

Patrick G. Boyle, Project Manager

Research and Test Reactors Licensing Branch

Division of Policy and Rulemaking

Office of Nuclear Reactor Regulation Docket No. 50-59

Enclosure:

As stated

cc see next page Texas A&M University Docket No.50-059

cc:

Mayor, City of College Station

P.O. Box Drawer 9960 College Station, TX 77840-3575

Governor's Budget and

Planning Office

P.O. Box 13561 Austin, TX 78711

Christopher Crouch,

AGN-201M Reactor Supervisor

Texas A&M University Nuclear Engineering

129 Zachry Engineering Center

3133 TAMU College Station, TX 77843-3133

Radiation Program Officer

Bureau of Radiation Control

Dept. Of State Health Services

Division for Regulatory Services

1100 West 49 th Street, MC 2828 Austin, TX 78756-3189

Technical Advisor

Office of Permitting, Remediation & Registration

Texas Commission on Environmental Quality

P.O. Box 13087, MS 122 Austin, TX 78711-3087

Test, Research, and Training

Reactor Newsletter

University of Florida

202 Nuclear Sciences Center

Gainesville, FL 32611

ML13137A338 OFFICE PRLB:LR PM PRLB:LA DIRS/PRLB:BC PRLB: LR PM NAME PBoyle GLappert AAdams PBoyle DATE 5/20/2013 05/29/2013 6/6/2013 6/6/2013

OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR THE RENEWED LICENSE FOR THE TEXAS A&M UNIVERSITY AGN-201 M REACTOR DOCKET NO. 50-59 As required by Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2), "[a]pplicants to renew or extend the term of an operating license for a nonpower reactor shall

include the financial information that is required in an application for an initial license." To

comply with this requirement, please provide an update to the supplemental information

provided by your letter dated June 30, 2011, fo r the Texas A&M University (TAMU, the applicant) application (the application) for a renewed facility operating license for the Texas

A&M University AGN-201M reactor (TAMU AGN-201M). In some cases, the responses provided in the June 30, 2011, letter may not have changed (e.g., RAIs 4.(b) and 4.(c)). In that

case, please indicate in your response "no change," no additional information is necessary, and

the NRC staff will consider your response provided in the June 30, 2011, submittal to remain

current.

1. The U.S. Nuclear Regulatory Commission (NRC) staff will analyze the financial statements for the current year, which are required by 10 CFR 50.71(b), to determine if

the applicant is financially qualified to operate the TAMU AGN-201M. Since TAMU's

financial statements included with the application are out of date, please provide a copy

of the latest financial statements for the NRC staff's review.

2. Pursuant to 10 CFR 50.33(f) (2), "[t]he applicant shall submit estimates for total annual operating costs for each of the first five years of operations of the facility." Since the

information included in the application is now out of date, please provide the following

additional information:

(a) Projected operating costs of the TAMU AGN-201M for each of the fiscal years (FY) 2015 thru FY 2019 (the first five year period after the projected license

renewal).

(b) TAMU's source(s) of funding to cover the operating costs for the above FYs.

3. The application references a decommissioning cost estimate for the TAMU AGN-201M that was based on discussions with the University's Safety and Risk Services

Departmental personnel using estimates based on experiences in dealing with mixed, hazardous and radioactive wastes. The application states that the decommissioning

cost estimate was $97,850 in 2011 dollars. The NRC staff needs the following additional

information to complete its review of the TAMU AGN-201M decommissioning cost

estimate: (a) A current decommissioning cost estimate in 2014 dollars for the TAMU AGN-201M to meet the NRC's radiological release criteria for decommissioning

the facility for unrestricted use, pursuant to 10 CFR 50.75(d)(2). Accordingly, describe the basis for how the cost estimate was developed; show costs

specifically broken down into the categories of labor; waste disposal, other items (such as energy, equipment, and supplies); and include a contingency factor of at

least 25 percent.

(b) State the decommissioning method to be used (e.g., DECON or other method).

(c) Provide a description of the means of adjusting the cost estimate and associated funding level periodically over the life of the facility, pursuant to

10 CFR 50.75(d)(2)(iii).

(d) Provide a numerical example show ing how the 2014 cost estimate will be updated periodically in the future.

4. The application includes a statement of intent (SOI) as the chosen method to provide decommissioning funding assurance for the TAMU AGN-201M. If the applicant intends

to use a SOI as the method to provide decommissioning funding assurance, as provided

for by 10 CFR 50.75(e)(1)(iv), the NRC staff must find that the applicant "[. . .] is a

Federal, State, or local government licensee[. . .]" To make this finding, the applicant

must state that it is a State government organization and that the decommissioning

funding obligations of the applicant are backed by the State government, and also

provide corroborating documentation. Further, the applicant must provide

documentation verifying that the signator of the SOI is authorized to execute said

document that binds the University. This document may be a governing body resolution, management directives, or other form that provides an equivalent level of assurance. As

the application does not include all of the above information, please submit the following:

(a) An updated SOI which includes the current (2014 dollars) cost estimate for decommissioning, a statement that funds for decommissioning will be obtained

when necessary, types name and title of signatory, and the signatory's oath or

affirmation attesting to the information.

(b) Documentation that corroborates the statement in the application that TAMU is a State agency and a State of Texas government licensee under

10 CFR 50.75(e) (2) (iv).

(c) A statement as to whether the decommissioning funding obligations for the TAMU AGN-201M are backed by the State of Texas government. The application must also present documentation that corroborates this statement.

For example, the documentation may be a copy of or complete citation to a state

statute that expressly provides that the obligations, or at least the

decommissioning funding obligations, of the applicant are backed or supported

by the full faith and credit of the State of Texas, or an opinion of the applicant's

General Counsel with citations to statutes, regulations, and/or case law that the

obligations, or at least those with respect to the decommissioning funding of the

applicant are obligations backed or supported by the full faith and credit of the

State of Texas.

(d) Documentation verifying that the signatory of the SOI is authorized to execute such a document that binds the applicant financially. For example, provide a copy of TAMU's governing board or equivalent resolution that shows that the

signatory of the SOI has been authorized by TAMU to bind TAMU financially, at

least with respect to funding the decommissioning of the TAMU AGN-201M, or

provide a copy of an official TAMU delegation of authority showing that the

signatory of the SOI is authorized to bind TAMU financially, at least with respect

to funding the decommissioning of the TAMU AGN-201M.