Protecting People and the EnvironmentUNITED STATES NUCLEAR REGULATORY COMMISSION
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
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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
