ML093290155

Submits Recent Amendment to the Escrow Agreement for the Decommissioning Funds for the Mit Research Reactor. It Is Dated 09/22/09

ML093290155
Person / Time
Site:	MIT Nuclear Research Reactor
Issue date:	11/19/2009
From:	Bernard J Massachusetts Institute of Technology (MIT)
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML093290155 (4)

Text

MIT NUCLEAR REACTOR LABORATORY AN MIT INTERDEPARTMENTAL CENTER John A. Bernard Mail Stop: NW12-208a Phone: 617 253-4202 Director of Reactor Operations 138 Albany Street Fax: 617 253-7300 Principal Research Engineer Cambridge, MA 02139 Email: Bernardj@mit.edu November 19, 2009 U.S. Nuclear Regulatory Commission Attn: Document Control Room Washington, DC.20555 Re: Massachusetts Institute of Technology; License No. R-37; Docket No. 50-20; Update of Escrow Agreement

Dear Sir or Madam:

Attached is the most recent amendment to the escrow agreement for the decommissioning funds for the MIT Research Reactor. It is dated 09/22/09.

Also, please be aware that MIT has applied to the NRC (JoAnn Simpson, 0-12D3) to change from an escrow arrangement to self-guarantee. That request was submitted 10/22/09 by MIT's Office of the General Counsel.

Sincerely,(

o A. Bernard, Ph.D, P CHP Director of Reactor Operations I declare under the penalty of perjury that the foregoing is true and correct.

Executed on /7-

])Pate Sigai cc: William B. Kennedy Project Manager Research and Test Reactors Branch A U.S. Nuclear Regulatory Commission

SEP-23-2009 13:5e From: To:16172586676 P.2/4 AMENDED ESCROW AGREEMENT This Amended Escrow Agreement, dated as of &Ai2~mends the Escrow o

Agreement originally dated as of August 18, 1990, as amended and restated as of March 31, 1994, as further amended and restated as of March 21, 1997, November 29, 2005, and January 10, 2007 (together, the "Escrow Agreement"), between Massachusetts Institute of Technology (0 M.I.T.") and U.S. Bank National Association (the "Escrow Agent"), successor to State Street Bank and Trust Company which, in turn, was successor to The First National Bank of Boston, pursuant to Paragraph 12 of the Escrow Agreement.

1. Paragraph 1 of the Escrow Agreement is hereby amended in its entirety to read as follows:

"1. Establishment of Escrow Account M.I.T. hereby establishes an escrow account (the "Escrow Account") with the Escrow Agent pursuant to the terms of this agreement, to provide financial assurance for decommissioning of two M.I.T. facilities, in the amounts shown below.

FirstFacility:

Facility name: Massachusetts Institute of Technology Address: 77 Massachusetts Avenue Cambridge, Massachusetts 02139 SNM-986 Applicable NRC Regulations 10 C.F.R. 70 Estimated Decommissionin. Costs: $1,125,000.00 Amount of Financial Assurance Provided: $1,125,000.00

SEP-23-2009 13:58 From: To: 16172586676 P.3`4 Second Facility:

Facility name: Massachusetts Institute of Technology Research Reactor Address: 138 Albany Street Cambridge, Massachusetts 02139 License Number: ,R-37 Applicable NRC Reeulations 10 C.F.R. 50 Estimated Decommissioning Costs: $30,0o0,000.00 Amount of Financial Assurance Provided: $30,000,000.00"

1. The first sentence of Paragraph 2 of the Escrow Agreement is hereby amended to read as follows:

"it is hereby acknowledged by the parties that cash or other liquid assets with a value of

$31,125,000.00 has been delivered to the Escrow Agent, and they, or assets of equivalent value, less any amounts disbursed pursuant to Paragraph 4 of this agreement, will remain in the Escrow Account until one of the conditions stated in Paragraph 3 of this agreement has been satisfied."

2. The third sentence under the heading "Escrow Account Management" in Paragraph 6 of the Escrow Agreement, beginning with the words "Interest earnings shall be," Is hereby amended to read as follows:

"Interest earnings shall be paid immediately upon receipt to Massachusetts institute of Technology Pool C custody account #00141671 at State Street Bank,, with advice to Manager of Reconciliation and Accounting, MIT Investment Management Company, 238 Main Street, Suite 200, Cambridge, Massachusetts, 02142, or as M.I.T. otherwise directs the Escrow Agent, provided that immediately after such interest payment the market value of the Escrow Account is equal to or greater than the Required Balance.

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¶ SEP-23-2009 13:58 From: Io:.1 1-8:16 7r.

3. Paragraph 17 of the Escrow Agreement is hereby amended in its entirety to read as follows:

"17. Notices If any notice or communication is required to be given hereunder it shall be deemed given if in writing and mailed by certified or registered mail, postage prepaid, return receipt requested:

If to Escrow Agent: U.S. Bank National Association Corporate Trust Services Mailcode: EX-MA-FED One Federal Street, 3"d Floor Boston, MA 02110 Attention: 1990 M.I.T. Escrow If to M.I.T.: Massachusetts Institute of Technology 77 Massachusetts Avenue Cambridge, Massachusetts 02139 Attention: Teresa Stone, Executive Vice President and Treasurer With further notice to: Massachusetts Institute of Technology Investment Management Company 238 Main Street, Suite 200 Cambridge MA 02142 Attention: Seth Alexander, President If to NRC: U.S. Nuclear Regulatory Commission Washington, D.C. 20555"

4. It is the intention of the parties hereto that all provisions, terms and conditions contained Inthe Escrow Agreement which have not been amended or modified as set forth above, shall remain in full force and effect.

WITNESS the execution hereof under seal as of the date above first written.

U.S. BANK NATIONAL MASSACHUSETTS INSTITUTE ASSOCIATION OF TECHNOLOGY Name an . Name Sýý e( nd pr Title Nas a en4A) I*? v~el+'

Date r/z.S W '7 Date cAAr-V1 eL4 n' i\