ML20274A230
| ML20274A230 | |
| Person / Time | |
|---|---|
| Site: | 07000938 |
| Issue date: | 09/29/2020 |
| From: | Monaghan R, Shor G Massachusetts Institute of Technology (MIT) |
| To: | Ty Naquin NRC/NMSS/DFM/FFLB |
| Naquin T | |
| Shared Package | |
| ml20274a208 | List: |
| References | |
| Download: ML20274A230 (2) | |
Text
September 29, 2020 U.S. Nuclear Regulatory Commission Office of Nuclear Material Safety and Safeguards 11545 Rockville Pike Two White Flint Building Mailstop 2WF-04D46 Rockville, Maryland 20852 Attention: Tyrone Naquin Via Federal Express Re: Compliance Submissions, Self- Guarantee Agreement Pursuant to 10 CFR Part 50, 10 CFR Part 70 and NUREG-1757, Vol.3
Dear Mr. Naquin:
In my capacity as the Interim Executive Vice President and Treasurer of the Massachusetts Institute of Technology (MIT), a nonprofit university, I serve as MITs Chief Financial Officer. This letter is in support of MITs use of the self-guarantee financial test to demonstrate financial assurance, as specified in 10 CFR Part 70 and 10 CFR Part 72, as ongoing compliance with MITs Self-Guarantee Agreement, dated May 3, 2010 (the Agreement), and approved by the Nuclear Regulatory Commission on July 16, 2010.
In order to demonstrate ongoing compliance with the Agreement and 10 CFR Part 70 and 10 CFR Part 72, and MITs ability to self-guarantee the decommissioning of the following facilities owned or operated by MIT, the current cost estimates or certified amounts for decommissioning each facility, so guaranteed, are shown below, along with their calculation (if applicable), and supporting attachments are enclosed:
Certified Amounts or Name of Facility License Number Location of Facility Current Cost Estimates MIT SNM-986 77 Massachusetts Ave. $1,125,000.00 Cambridge, MA 02139 MIT Research Reactor R-37 138 Albany St. $40,219,000.00 Cambridge, MA 02139 A. License No. SNM-986 Based upon the applicable quantities of special nuclear materials stored at this facility, in accordance with 10 C.F.R. 70.25(d), MIT must guarantee the statutory minimum of $1,125,000 for the proper disposal of these materials.
B. License No. R-37 New Decommissioning Estimate:
We estimate the decommissioning cost of the MIT Reactor to be $40.2 million. This figure is obtained from an independent cost study done in calendar year 2020 to estimate the cost of ceasing operations, decommissioning, and demolishing the MIT Reactor, with removal of all structures and material, in Glen Shor l Interim Executive Vice President and Treasurer l Massachusetts Institute of Technology 77 Mass. Ave., NE49-4000, Cambridge, MA 02139-4307 l 617-324-8142 l glenshor.mit.edu l http://vpf.mit.edu
order to meet NRC and Commonwealth of Massachusetts Department of Public Health release criteria for unrestricted future use of the site. The quoted cost is a Class 3 estimate and includes the recommended 30% contingency above the baseline estimate. Because the last decommissioning study was done in 2004, it was timely to conduct another study.
Self-Guarantee I hereby certify that MIT is currently a going concern, and that it possesses positive tangible net worth in the amount of $24.2 billion, as of the fiscal year ending on June 30, 2020. This figure is derived from MITs independently audited, year-end financial statements and footnotes for the latest completed fiscal year, which is enclosed. MITs independent auditor, PricewaterhouseCoopers, has included its review of this letter, which is also enclosed.
MIT is not required to file a Form 10-K with the U.S. Securities and Exchange Commission for the latest fiscal year.
MIT satisfies the following self-guarantee test:
- 1. Current bond rating of most recent uninsured, uncollateralized, and unencumbered issuance of this institution:
Rating: AAA Name of rating service: Standard & Poors Financial Services LLC
- 2. Date of issuance of bonds: May 12, 2020
- 3. Description and date of maturity of bonds:
Amount Interest Rate Maturity Date Description
$350,000,000 2.294% July 1, 2051 Taxable Series G
- 4. Is the rating specified on line 1 A or better? Yes I hereby certify that the content of this letter is true and correct to the best of my knowledge.
Signature ___________________________________
Name: Glen Shor
Title:
Interim Executive Vice President and Treasurer Massachusetts Institute of Technology Building NE49-4000 77 Massachusetts Avenue, Cambridge, MA 02139 Glen Shor l Interim Executive Vice President and Treasurer l Massachusetts Institute of Technology 77 Mass. Ave., NE49-4000, Cambridge, MA 02139-4307 l 617-324-8142 l glenshor.mit.edu l http://vpf.mit.edu Page 2 MIT Self-Gaurantee Decommisioning Expense License Nos. R-37 and SNM-986