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Radioactive
Materials Branch |
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| Financial Assurance for
Decommissioning Information Regulations |
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| 0104 DEFINITIONS | ||
| (104) | "Restricted area" means an area, access to which is controlled by the licensee or registrant for purposes of protecting individuals against undue risks from exposure to radiation and radioactive materials. Restricted area does not include areas used as residential quarters, but separate rooms in a residential building may be set apart as a restricted area. |
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| .0353 FINANCIAL ASSURANCE AND RECORD-KEEPING FOR DECOMMISSIONING | |||||
| (a) |
For the
purposes of this Rule, R is defined as the sum of the ratios of the quantity
of each isotope with half-life greater than 120 days to the applicable value
in the table in Appendix C to 10 CFR §§ 20.1001 – 20.2401, as shown in the
following formula: |
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| (b) | For
unsealed radioactive materials, other than source material, the quantities
requiring financial assurance and the financial assurance amounts are as
follows: |
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| (1) | If R
divided by 105 is greater than one, then the minimum financial
assurance amount is one million one hundred twenty-five thousand dollars
($1,125,000) and shall be as stated in a decommissioning funding plan as
described in Paragraph (i) of this Rule; |
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| (2) |
If R divided
by 104 is greater than one, but R divided by 105 is
less than or equal to one, then the financial assurance amount is one
million one hundred twenty-five thousand dollars ($1,125,000); or |
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| (3) |
If R divided
by 103 is greater than one, but R divided by 104 is
less than or equal to one, then the financial assurance amount is two
hundred twenty-five thousand dollars ($225,000). |
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| (c) |
For sealed
radioactive materials, the quantities requiring financial assurance and the
financial assurance amounts are as follows: |
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| (1) |
If R divided
by 1012 is greater than one, the licensee shall submit a
decommissioning funding plan in accordance with Paragraph (i)
of this Rule; or |
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| (2) |
If R divided
by 1010 is greater than one, but R divided by 1012 is
less than or equal to one, then the financial assurance amount is one
hundred thirteen thousand dollars ($113,000). |
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| (d) |
For source
material in a readily dispersible form, the quantities requiring financial
assurance and the financial assurance amounts are as follows: |
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| (1) |
If a specific
license authorizes possession and use of more than 100 millicuries, then the
minimum financial assurance amount is one million one hundred twenty-five
thousand dollars ($1,125,000) and shall be as stated in a decommissioning
funding plan as described in Paragraph (i) of this Rule;
or |
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| (2) |
If a specific
license authorizes possession and use of more than 10 millicuries, but less
than or equal to 100 millicuries, then the licensee shall either: |
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| (A) |
submit a
decommissioning funding plan in accordance with Paragraph (i)
of this Rule; or |
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| (B) |
submit
certification of financial assurance in the amount of two hundred
twenty-five thousand dollars ($225,000). |
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| (e) |
Each applicant
for a specific license authorizing possession and use of radioactive
material of half‑life greater than 120 days and in quantities specified in
Paragraphs (b) or (c) or source
material in quantities specified in Paragraph (d) of this
Rule shall either: |
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| (1) |
submit a decommissioning funding
plan as described in Paragraph (i) of this Rule; or |
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| (2) |
submit a
certification that financial assurance for decommissioning has been provided
in the amount prescribed by Paragraphs (b) through (d) of this Rule using
one of the methods described in Rule .0354 of this Section. For an
applicant, this certification may state that the appropriate assurance will
be obtained after the application has been approved and the license issued
but prior to the receipt of licensed material. As part of the
certification, the applicant shall submit to this agency, a copy of the
financial instrument obtained to satisfy the requirements of
Paragraph (i) of this Rule. |
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| (f) |
Each holder of
a specific license issued before the effective date of this Rule, and of a
type described in Paragraphs (b)(1),
(b)(2), (c)(1), or (d)(1) of this
Rule shall submit, no later than May 1, 2007, a certification of financial
assurance for decommissioning or a decommissioning funding plan in
accordance with the criteria set forth in this Rule. |
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| (g) |
Each holder of
a specific license issued before the effective date of this Rule, and of a
type described in Paragraphs (b)(3), (c)(2) or (d)(2) of this Rule shall
submit, no later than November 1, 2007, a certification of financial
assurance in accordance with the criteria set forth in this Rule. |
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| (h) |
Each holder of
a specific license issued on or after the effective date of this Rule, which
is of a type described in Paragraphs (b) through (d) of this Rule, shall
provide financial assurance for decommissioning in accordance with the
criteria set forth in this Rule. |
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| (i) |
Each
decommissioning funding plan shall contain a cost estimate for
decommissioning and documentation of an approved method assuring funds for
decommissioning as referenced in Rule .0354 of this Section, including means
of adjusting cost estimates and associated funding levels at intervals not
to exceed three years. |
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| (j) |
Each person
licensed under this Section of this Chapter shall keep records of
information important to the safe and effective decommissioning of the
facility in an identified location until the license is terminated by the
agency. If records of relevant information are kept for other purposes,
reference to these records and their locations may be used. Information the
agency considers important to decommissioning includes: |
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| (1) |
Records of
spills or other occurrences involving the spread of contamination in and
around the facility, equipment, or site. |
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| (A) |
These records
may be limited to instances when contamination remains after any cleanup
procedures or when there is reasonable likelihood that contaminants may have
spread to inaccessible areas as in the case of possible seepage into porous
materials such as concrete. |
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| (B) | These records shall
include any known information on identification of involved nuclides, quantities, forms,
and concentrations. |
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| (2) |
As‑built
drawings and modifications of structures and equipment in restricted areas
where radioactive materials are being used or stored, and of locations of
possible inaccessible contamination such as buried pipes which may be
subject to contamination. |
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| (A) | If required drawings are
referenced, each relevant document need not be indexed individually. |
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| (B) | If drawings are not
available, the licensee shall substitute appropriate records of available information
concerning these areas and locations. |
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| (3) | Records of the cost
estimate performed for the decommissioning funding plan or of the amount certified for
decommissioning, and records of the funding method used for assuring funds if either a
funding plan or certification is used. |
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| (4) | Except for areas
containing only sealed sources (provided the sealed sources have not leaked or no
contamination remains after cleanup of any leak) or radioactive materials having only
half-lives of less than 65 days, or depleted uranium used only for shielding, licensees
shall be required to establish and maintain a list, contained in a single document. The
list shall be updated every two years, and include the following information: |
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| (A) | All areas designated and
formerly designated as restricted areas as defined in Rule .0104 of
this Chapter; |
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| (B) |
All areas
outside of restricted areas that require documentation under Paragraph (j)
of this Rule; |
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| (C) | All areas outside of
restricted areas where current and previous wastes have been buried as documented in Rule
.1642 of this Chapter; and |
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| (D) | All areas outside of
restricted areas which contain material that, if the license expired, the licensee would
be required to decontaminate either the area to unrestricted release levels or to apply to
the agency for approval for disposal as required in Rule .1629 of this Chapter. |
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| (k) |
Prior to
license termination, each licensee authorized to possess radioactive
material in an unsealed form, shall forward to the agency the records
required in Paragraph (j) of this Rule. |
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| (l) |
Before
licensed activities are transferred, licensees shall transfer all records
required in Paragraph (j) of this Rule. In this case, the new licensee
shall maintain the records until the license is terminated. |
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History
Note: Authority G.S. 104E-7; 104E-18; |
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| .0354 METHODS OF FINANCIAL ASSURANCE FOR DECOMMISSIONING | |||||
| (a) | Financial assurance for decommissioning as required by Rule .0353 of this Section must be provided by one or more of the following methods: | ||||
| (1) | prepayment, where: | ||||
| (A) | Prepayment is the deposit prior to the start of operation into an account segregated from licensee assets and outside the licensee's administrative control of cash or liquid assets such that the amount of funds would be sufficient to pay decommissioning costs; and | ||||
| (B) | Prepayment may be in the form of a trust, escrow account, government fund, certificate of deposit, or deposit of government securities. | ||||
| (2) | a surety method, insurance, or other guarantee method, where: | ||||
| (A) | These methods guarantee that decommissioning costs will be paid should the licensee default; | ||||
| (B) | A surety method may be in the form of a surety bond, letter of credit, or line of credit; | ||||
| (C) | A parent company guarantee of funds for decommissioning costs based on a financial test may be used if the parent company and guarantee meet the criteria contained in Rule .0355 of this Section; | ||||
| (D) | A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of this Section; and | ||||
| (E) | Any surety method or insurance used to provide financial assurance for decommissioning shall contain the following conditions: | ||||
| (i) | The surety method or insurance shall be open-ended or, if written for a specified term, such as five years, shall be renewed automatically unless 90 days or more prior to the renewal date, the issuer notifies the agency, the beneficiary, and the licensee of its intention not to renew; | ||||
| (ii) | The surety method or insurance shall provide that the full face amount be paid to the beneficiary automatically prior to the expiration date without proof of forfeiture if the licensee fails to provide a replacement acceptable to the agency within 30 days after receipt of notification of cancellation; | ||||
| (iii) | The surety method or insurance shall be payable to a trust established for decommissioning costs. The trustee and trust shall be acceptable to the agency. An acceptable trust includes an appropriate state or federal government agency or an entity which has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency; | ||||
| (iv) | The surety method or insurance shall remain in effect until the agency has terminated the license. | ||||
| (3) | an external sinking fund where: | ||||
| (A) | Deposits are made at least annually, coupled with a surety method or insurance, the value of which may decrease by the amount being accumulated in the sinking fund; | ||||
| (B) | An external sinking fund is a fund established and maintained by setting aside funds periodically in an account segregated from licensee assets and outside the licensee's administrative control in which the total amount of funds would be sufficient to pay decommissioning costs at the time termination of operation is expected; | ||||
| (C) | An external sinking fund may be in the form of a trust, escrow account, government fund, certificate of deposit or deposits of government securities; and | ||||
| (D) | The surety or insurance provisions shall be as stated in Subparagraph (a)(2) of this Rule. | ||||
| (4) | in the case of federal, state or local government licensees, a statement of intent containing a cost estimate for decommissioning or an amount based on the provisions of Rule .0353 of this Section, and indicating that funds for decommissioning shall be obtained when required by the agency. | ||||
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| Last Modified: 11 January 2008 |
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