U.S. Nuclear Regulatory Commission

Technical Assistance Request, Yuma Proving Ground, Department of the Army, Statement of Intent for a Government Licensee

HPPOS-269 PDR-9306090321

Title: Technical Assistance Request, Yuma Proving Ground,

Department of the Army, Statement of Intent for a

Government Licensee

See the memorandum from J. E. Glenn to R. J. Pate dated

August 12, 1991, and the memorandum from J. H. Austin to J.

E. Glenn dated August 6, 1992. These memos respond to the

TAR from Region V, dated July 15, 1991, regarding the

Department of the Army Statement of Intent related to the

YUMA Proving Ground. NMSS has reviewed the financial

assurance and revised cost estimate documents in a

Statement of Intent as cited in NUREG-1337, Rev. 1, page

A-6. The cost estimate and the assumptions used in the

cost details are reasonable. As a matter of information to

the Regional licensing staff, we are enclosing a November

21, 1990 memorandum sent to the Regions which included

recommended wording for a statement of intent for a

government licensee which may be used by Regions in future

cases.

Government licensees required to submit financial assurance

under the decommissioning rule may use a statement of

intent as their financial assurance mechanism. Most

government licensees required to make submittals are

expected to use this option. However, no recommended

wording for a statement of intent was provided in the

standard format and content guidance originally published

as NUREG-1336 and later issued as Regulatory Guide 3.66. We

are enclosing recommended wording to provide an example of

an acceptable statement of intent. This recommended

wording will be incorporated into the standard review plan

for license applications (FC 90-2) until it can be added to

Regulatory Guide 3.66.

In addition to the wording for a statement of intent,

questions have been raised concerning what financial

assurance is required from the Navy and Air Force master

materials licensees. The Navy and Air Force have made

preliminary financial assurance submittals to comply with

the July 27, 1990 submittal deadline. However, the

decommissioning regulations also require that the Navy and

Air Force each submit a decommissioning funding plan with

site-specific cost estimates at renewal. However, the lack

of a renewal date leaves the due date for submittal of a

complete funding plan in question.

The intent of the rule is that the Navy and Air Force

should submit plans within the next five years which assure

a specified level of funding for decommissioning their

facilities. A reasonable approach would be for them to

systematically review the activities authorized at each

site, and perform a site-specific cost estimate for each

site which would require decommissioning financial

assurance if licensed separately. For the other activities

and sites which do not reach this threshold, a general

combined cost estimate would be acceptable. A total cost

should be determined and a statement of intent or other

mechanism for that dollar amount should be provided.

This is an especially opportune time for the military to be

considering decommissioning plans because they recently

received the GAO report issued in March 1990 entitled, "The

Military Would Benefit From a Comprehensive Waste Disposal

Program," which was circulated to the regions in May 1990.

We request that Regions II and IV approach the Navy and the

Air Force, respectively, to discuss our expectations that

they submit decommissioning funding plans with

site-specific cost estimates within the next five years.

Regulatory references: 10 CFR 30.35, 10 CFR 40.36, 10 CFR

70.25, Regulatory Guide 3.66

Subject codes: 5.8, 11.2, 12.13

Applicability: Byproduct, Source, and Special Nuclear

Materials