ML20205D618

Forwards Proprietary Rept on Agreed Upon Procedures & Rept & Consolidated Financial Statements Re Financial Assurance for Decommissioning.Encls Withheld,Per 10CFR2.790

ML20205D618
Person / Time
Site:	General Atomics, 07000734
Issue date:	03/31/1999
From:	Asmussen K GENERAL ATOMICS (FORMERLY GA TECHNOLOGIES, INC./GENER
To:	Alexander Adams, Gaskin C NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20137E394	List: ML20205D618
References
696-38-67-3056, NUDOCS 9904020255
Download: ML20205D618 (3)

Text

CENERAL ATDANCE March 31,1999 696/38/67-3056 Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555 ATTN: Mr. Alexander Adams, Jr.

Mr. Charles E. Gaskin

Subject:

Docket Nos. 50-89,50-163 and 70-734; License Nos. R-38, R-67 and SNM-696 Respectively; Submittal of Revised Financial Documents (1998) Re: Financial Assurance for Decommissioning

References:

1) Asmussen, Keith E., Letter No. 38/67-1884 to U.S. Nuclear Regulatory Commission ATTN: Mr. Marvin Mendonca, Docket Nos. 50-89 and 50-163:

License Nos. R-38 and R-67; Decommissioning Report and Financial Assurance" dated July 26,1990

2) Asmussen, Keith E., Letter No. 696-1963 to Mr. John W. N. Hickey, U.S.

Nuclear Regulatory Commission, " Docket No.70-734; License No. SNM-696; Submittal of Decommissioning Funding Plan," dated September 10,1992

3) Asmussen, Keith E., Letter No. 696/38/67-2903 to U.S. Nuclear Regulatory Commission ATTN: Mr. Alexander Adams. Jr. and Mr. Charles E. Gaskin,

" Docket Nos. 50-89,50-163 and 70-734; License Nos. R-38, R-67 and SNM-696 Respectively: Submittal of Revised Parent Company Guarantee Re:

Financial Assurance for Decommissioning," dated April 28,1998

4) Asmussen, Keith E., Letter No. 696-2581 to U.S. Nuclear Regulatory Commission ATTN: Mr. Alexander Adams, Jr. and Mr. Charles E. Gaskin,

" Docket Nos. 70-0734,50-89 and 50-163; Decommissioning Financial Assurance," dated May 20,1996

5) Weiss, Seymour H. and Robert C. Pierson, Letter to Dr. Keith E. Asmussen,

" Financial Assurance for NRC Licenses SNM-696, R-38, R-67 Docket Nos.

70-0734,50-89,50-163," Dated July 9,1996 Gentlemen:

General Atomics (GA) possesses two TRIGA research reactors under Nuclear Regulatory Commission (NRC) License Nos. R-38 and R-67 (both of which have been amended to withdraw authorization to operate), and conducts operations involving the possession (but not use) of special nuclear material under NRC License No. SNM-696. In compliance with 10 CFR Parts 50.33 and 70.25, GA previously submitted financial assurance for the estimated cost of decom-missioning its reactors and its SNM-696 licensed facilities (Refs.1,2 & 3). The financial assurance was provided by a parent co.mpany guarantee based on the financial test contained in Appendix A of 10 CFR 30.

Subsequently, for reasons detailed in Reference 4, GA was and is in non-compliance with the applicable NRC financial assurance regulations (10 CFR 50.75 and 70.25). As a conse- i quence, G A proposed that an alternate method of compliance be approved by the NRC (Ref. 4). g 9904020255 990331 h; %_)\

PDR ADOCK 05000089 I PDR 3550 GENERAL ATOMICS COURT. SAN DIEGO, CA 921211194 PO BOX 85608, SAN DIEGO CA 92186 5608 4619) 455 3000

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6 i Document Control Desk March 31,1999 696/38/67-3056 Page 2 After reviewing GA's proposal, consolidated financial statements, and other relevant informa-tion, the NRC agreed to exercise its discretion and forebear enforcement; provided, however, that ,

should circumstances materially change such that GA's parent would be able to qualify under the regulations to provide a guarantee for the full amount of the estimated costs of decommissioning, this forebearance shall cease (Ref. 5).

The guarantee included a commitment by General Atomic Technologies Corporation (GATC), the parent guarantor, to submit revised financial statements, financial test data, and a special auditor's report and reconciling schedule annually within 90 days of the close of the >

parent guarantor's fiscal year. Accordingly, submitted herewith is said information for 1998.

This same information demonstrates that the circumstances described in Ref. 4 have not changed materially and GA's parent company does not qualify under the regulations to provide the guarantee. Therefore, GA will continue to provide financial assurance pursuant to the alternate method of compliance.

As set forth in the enclosed affidavit of Mr. Jones, GATC requests that this information be treated as proprietary information under the provisions of 10 CFR 2.790. GATC is a privately held corporation and the enclosed financial statements contain sensitive financial information.

If you should have any questions regarding this submittal, please do not hesitate to contact me at (619) 455-2823.

Very truly yours, i

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Keith E. Asmussen, Director 5

Licensing, Safety and Nuclear Compliance i Enclosures as stated cc: Mr. Ellis W. Merschoff, NRC Region IV (w/o enclosures) 1 I

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l U.S. Nuclear Regulatory Commission Enclosure to GA Letter No. 696/38/67-3056 Document Control Desk March 31,1999 STATE OF CALIFORNIA ) l

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COUNTY OF SAN DIEGO )

i AFFIDAVIT OF JOHN E. JONES '

I, John E. Jones, Secretary and Treasurer of General Atomic Technologies Corporation, do hereby affirm and state:

1. I am an officer of General Atomic Technologie: Corporation and I am authorized to execute this affidavit on behalf of General Atomic Technologies Corporation.

2. The affidavit is submitted under the provisions of 10 CFR 2.790 in order to withhold the enclosed financial statements and other enclosed financial information of General Atomic Technologies Corporation from public disclosure or publication.

3. The subject documents constitute confidential financial information of a privately-held corporation which has been held in confidence by the owner and are customarily held in such confidence, and are not available in public sources. Public disclosure would create substantial harm to the owner by providing detailed financial information to its competitors and other parties whose interest may be adverse to the owner.

GENERAL ATOMIC TECHNOLOGIES CORPORATION A ~

f John E. Jor)es cretary and Tr asurer SUBSCRIBED AND SWORN to before rne this 31st day of March 1999.

WITNESS my hand and official seal.

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