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Home       > Electronic Reading       Room       > Document       Collections       > Generic       Communications >       Generic       Letters >       1997       > GL97003 
				UNITED STATES                         NUCLEAR REGULATORY COMMISSION               OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS                            WASHINGTON, D.C.  20555                                 July 9, 1997NRC GENERIC LETTER 97-03:  ANNUAL FINANCIAL SURETY UPDATE REQUIREMENTS                                   FOR URANIUM RECOVERY LICENSEESAddressees Uranium Recovery Licensees and State Officials.PurposeThe U.S. Nuclear Regulatory Commission (NRC) is issuing this generic letter to notifyaddressees about certain procedural requirements for surety submittals.  It is expected that recipients will review the information for applicability to their facilities and consideractions, as appropriate, to avoid problems.  However, no specific action nor written responseis required at this time.Description of CircumstancesDuring the November 1996 meeting with the uranium recovery industry, sponsored by theNRC and the National Mining Association, the staff clarified NRC  general proceduralrequirements for surety submittals.  This letter documents these requirements for licensees' reference in future surety submittals.DiscussionCriterion 9 of 10 CFR Part 40, Appendix A, requires licensees to establish financial suretyarrangements sufficient to carry out the decontamination, decommissioning of the mill andsite, and reclamation of any tailings or waste disposal areas.  In its annual review of sureties, the staff generally has considered only decommissioning, reclamation, and groundwater corrective action plans, and revisions to those plans, that have been approved by NRC. Criterion 9 states that the annual surety adjustment should "...recognize any increases ordecreases resulting from inflation, changes in plans, activities performed, and any otherconditions affecting costs."  Therefore, licensee- proposed revisions to approveddecommissioning, reclamation, and ground water corrective action plans are factors to beconsidered in the annual surety adjustment.  To comply with the rule, any proposed revisionsto decommissioning or reclamation plans submitted for NRC review and approval will need tobe accompanied by an analysis of the change in cost to the approved plan.  Such cost willneed to be accounted for in the surety at the next annual surety update.9707020310.                                                                                                GL 97-03                                                                                                July 9, 1997                                                                                                Page 2 of 2In addition, when considering the surety amount in an annual update, licensees shouldensure that they are presenting the cost of remaining site reclamation and ground watercorrective action plans, rather than simply subtracting the cost of completed work from thecurrent surety.  Future submittals that do not provide a cost basis showing the acceptability ofthe proposed surety amount will not be accepted for review.  Failure to resubmit a revisedsurety with acceptable cost basis will be subject to appropriate enforcement action.Finally, a recent review of financial assurance instruments for uranium recovery licensees hasindicated that many amended surety instruments are not being transmitted to the appropriateNRC address or addressee.  As a result, there have been delays in the receipt of suretyinstruments, and non-receipt, in some cases.  All surety instruments should be transmitted bycertified mail, under a cover letter, from the licensee to the Branch Chief, Uranium RecoveryBranch, Division of Waste Management, U.S. Nuclear Regulatory Commission, Mail StopT7J-9, Washington, D.C. 20555.  The docket number should be clearly identified on thetransmittal letter and the surety instrument.  Surety instruments should not be transmitteddirectly from banks or insuring  organizations without a letter of transmittal from the licenseethat clearly states the Source Material License number for the facility and the name of thelicensee.  When required, information such as auditor reports, financial statements, orupdated parent company documentation should be included.It is expected that addressees will consider actions, as appropriate, to avoid problems,however, no specific action or written response is required.If you have any questions about this matter, please contact the technical contact listed belowor your NRC project manager.                                          signed by                                    John T. Greeves, Director                                    Division of Waste Management                                    Office of Nuclear Material Safety                                      and SafeguardsTechnical contact:  Daniel M. Gillen, NMSS                    301-415-7295                    E-mail:  dmg2@nrc.gov