ML092990518

University of Wisconsin, Request for Additional Information (Financial Qualification) License Renewal

ML092990518
Person / Time
Site:	University of Wisconsin
Issue date:	11/13/2009
From:	William Schuster Research and Test Reactors Licensing Branch
To:	Agasie R Univ of Wisconsin, Univ of Wisconsin - Madison
schuster W, NRR/DPR/PRTA 415-3934
References
TAC ME1585
Download: ML092990518 (6)

Text

November 13, 2009 Mr. Robert Agasie Reactor Director Nuclear Reactor Laboratory 1513 University Avenue, Room 141ME University of Wisconsin Madison, WI 53706-1687

SUBJECT:

UNIVERSITY OF WISCONSIN - REQUEST FOR ADDITIONAL INFORMATION REGARDING THE LICENSE RENEWAL FOR THE UNIVERSITY OF WISCONSIN NUCLEAR REACTOR (TAC NO. ME1585)

Dear Mr. Agasie:

We are continuing our review of the Application for Renewal of Facility Operating License No. R-74, Docket No. 50-156 for the University of Wisconsin. The application was submitted on May 9, 2000.

During our review of the Safety Analysis Report for the application, questions have arisen for which we require additional information and clarification. Please provide responses to the enclosed request for additional information as discussed on October 21, 2009.

In accordance with Title 10 of the Code of Federal Regulations Section 50.30(b), your response must be executed in a signed original under oath or affirmation. Following receipt of the request we will continue our evaluation of your request. If you have any questions regarding this review, please me at 301-415-3934.

Sincerely,

/RA/ William C. Schuster IV, Project Manager Research and Test Reactors Branch A Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-156

Enclosure:

1. Request for Additional Information cc w/encl: See next page

ML092990518 NRR-088 OFFICE PRTA: PM PRTA: LA PFPB PRTA: BC NAME WSchuster GLappert JSimpson KBrock DATE 10/26/2009 11/3/2009 11/4/2009 11/16/2009 University of Wisconsin Docket No. 50-156 cc: Mayor of Madison City Hall 210 Martin Luther King, Jr. Boulevard, Room 403 Madison, Wisconsin 53703 Chairman, Public Service Commission of Wisconsin 610 North Whitney Way P.O. Box 7854 Madison, WI 53707-7854 Manager Radiation Protection Section Division of Public Health Dept of Health and Family Services P.O. Box 2659 Madison, WI 53701-2659

Test, Research, and Training Reactor Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611

Victor Goretsky Assistant Director & Radiation Safety Officer Department Environmental Health & Safety 530 Environmental Protection And Safety Bldg 30 N Murray St Madison, WI 53715 ENCLOSURE OFFICE OF NUCLEAR REACTOR REGULATION REQUEST FOR ADDITIONAL INFORMATION REGARDING FINANCIAL QUALIFICATIONS FOR THE RENEWED FACILITY OPERATING LICENSE FOR UNIVERSITY OF WISCONSIN NUCLEAR REACTOR LICENSE NO. R-74 DOCKET NO. 50-156

Pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Section 50.33(f)(2), "Applicants 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 the following updated and supplemental information to the May 9, 2000, University of Wisconsin (the University, applicant) application for a renewed license for the University of Wisconsin Nuclear Reactor (UWNR, the application).

1. The U. S. Nuclear Regulatory Commission (NRC) staff will analyze the University's 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 UWNR. Since the University's financial statements provided with the application are currently 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), "the applicant shall submit estimates for total annual operating costs for each of the first five years of operation of the facility." Since the information included in the applicant's 2000 application for the UWNR is now out of date, please provide the following additional information:

(a) The estimated operating costs for the each of the fiscal years (FY) 2011 through 2015 (the first five year period after the projected license renewal date).

(b) Confirm that the University's primary source(s) of funding to cover the operating costs for the above FY will be from the state-funded budget as described in the application.

3. Section 15.3 of the application, "Financial Ability to Decommission the Facility," states that the expected cost to decommission the UWNR was $1,200,000 in 2000. In order for the NRC staff to complete its review of the decommissioning cost estimate, please provide the following information:

(a) A current decommissioning cost estimate in 2010 dollars for the UWNR to meet the NRC's radiological release criteria for decommissioning the facility for unrestricted use pursuant to 10 CFR 50.75(d(2)(i). Confirm that the basis for the cost estimate is still NUREG/CR-1756 as described in the application, showing costs specifically broken down into the categories of labor, waste disposal, other items (such as energy, equipment, and supplies), and a contingency factor of at least 25 percent.

(b) A statement of the decommissioning method to be used (e.g., DECON, SAFSTOR, or other method).

(c) 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).

Also, provide a numerical example updating the 2010 cost estimate.

4. The application indicates that the University plans to use a statement of intent (SOI) as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50.75(e)(1)(iv) (Letter of Intent from the University to the NRC dated April 27, 2000). Where the applicant intends to use a SOI as the method to provide decommissioning funding assurance, 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 applicant. This document may be a governing body resolution, management directives, or other form that provides an equivalent level of assurance. Since the application does not include all of the above information, please submit the following:

(a) An updated SOI which includes the date of the submittal of the SOI; the current (2010) cost estimate for decommissioning; a statement that funds for decommissioning will be obtained when necessary; typed name and title of the signator, and original signature of the signator; and the signator's oath or affirmation attesting to the information.

(b) Documentation that corroborates the statement in the application that the University is a State of Wisconsin government licensee pursuant to 10 CFR 50.75(e)(2)(iv).

(c) A statement as to whether the decommissioning funding obligations for the UWNR are backed by the State of Wisconsin government. The application must also present information 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 obligations backed or supported by the full faith and credit of the State of Wisconsin. Or the documentation may be an opinion of the applicant's General Counsel with citations to statutes, regulations, and/or case law that the obligations, or at least with respect to the decommissioning funding obligations, of the applicant are obligations backed or supported by the full faith and credit of the State of Wisconsin.

(d) Documentation verifying that the signator of the SOI is authorized to execute such a document that binds the applicant financially. For example, provide a copy of the University's governing board or equivalent resolution that shows that the signator of the SOI has been authorized by University to bind the University financially, at least with respect to funding the decommissioning of the UWNR, or provide a copy of an official University delegation of authority showing that the signator of the SOI is authorized to bind the University financially, at least with respect to funding the decommissioning of the UWNR.