Minnesota Administrative Rules
Agency 144 - Health Department
Chapter 4731 - RADIATION SAFETY
DOMESTIC LICENSING OF SOURCE MATERIAL
Part 4731.0780 - FINANCIAL ASSURANCE AND RECORD KEEPING FOR DECOMMISSIONING
Universal Citation: MN Rules 4731.0780
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. Applicability.
This part establishes criteria for providing financial assurance for decommissioning, except for licenses authorizing the receipt, possession, and use of source material for uranium or thorium milling or radioactive material at sites formerly associated with such milling, for which financial assurance requirements are set forth in part 4731.0580.
Subp. 2. More than 100 mCi.
An applicant for a specific license authorizing the possession and use of more than 100 millicuries (3.7 GBq) of source material in a readily dispersible form must submit a decommissioning funding plan according to subpart 4.
Subp. 3. Between ten mCi and 100 mCi.
A.
An applicant for a specific license authorizing possession and use of
quantities of source material greater than ten millicuries (370 MBq) but less
than or equal to 100 millicuries (3.7 GBq) in a readily dispersible form must:
(1) submit a decommissioning funding plan
according to subpart 4; or
(2)
submit a certification that financial assurance for decommissioning has been
provided in the amount of $225,000, using one of the methods described under
subpart 5. The certification may state that the appropriate assurance will be
obtained after the application has been approved and the license issued but
before the receipt of licensed material.
B. If an applicant defers execution of the
financial instrument until after the license has been issued, a signed original
of the financial instrument obtained to satisfy the requirements of subpart 5
must be submitted to the commissioner before receipt of licensed
material.
C. If an applicant does
not defer execution of the financial instrument, the applicant must submit to
the commissioner, as part of the certification, a signed original of the
financial instrument obtained to satisfy the requirements of subpart
5.
D. A holder of a specific
license:
(1) issued on or after July 27,
1990, which is covered by subpart 1 or 2, shall provide financial assurance for
decommissioning according to this part; and
(2) issued before July 27, 1990, and of a
type described in subpart 1 shall submit a decommissioning funding plan as
described in subpart 5 or a certification of financial assurance for
decommissioning in an amount at least equal to $1,125,000 according to this
part. If the licensee submits the certificate of financial assurance rather
than a decommissioning funding plan, the licensee shall include a
decommissioning funding plan in any application for license renewal. Licensees
required to submit the $1,125,000 amount must do so by December 2,
2004.
Subp. 4. Funding plan requirements.
A. Each decommissioning funding plan must be
submitted for review and approval and must contain:
(1) a detailed cost estimate for
decommissioning , in an amount reflecting:
(a) the cost of an independent contractor to
perform all decommissioning activities;
(b) the cost of meeting the criteria in part
4731.2100, subpart 2, for unrestricted use, provided that, if the applicant or
licensee can demonstrate its ability to meet the provisions of part 4731.2100,
subpart 3, the cost estimate may be based on meeting the criteria in part
4731.2100, subpart 3;
(c) the
volume of on-site subsurface material containing residual radioactivity that
will require remediation; and
(d)
an adequate contingency factor;
(2) identification of and justification for
using the key assumptions contained in the DCE;
(3) a description of the method of assuring
funds for decommissioning from subpart 5, including means for adjusting cost
estimates and associated funding levels periodically over the life of the
facility;
(4) a certification by
the licensee that financial assurance for decommissioning has been provided in
the amount of the cost estimate for decommissioning; and
(5) a signed original, or if permitted, a
copy, of the financial instrument obtained to satisfy the requirements of
subpart 5, unless a previously submitted and accepted financial instrument
continues to cover the cost estimate for decommissioning.
B. At the time of license renewal and at
intervals not to exceed three years, the decommissioning funding plan must be
resubmitted with adjustments as necessary to account for changes in costs and
the extent of contamination. If the amount of financial assurance will be
adjusted downward, this cannot be done until the updated decommissioning
funding plan is approved. The decommissioning funding plan must update the
information submitted with the original or prior approved plan, and must
specifically consider the effect of the following events on decommissioning
costs:
(1) spills of radioactive material
producing additional residual radioactivity in on-site subsurface
material;
(2) waste inventory
increasing above the amount previously estimated;
(3) waste disposal costs increasing above the
amount previously estimated;
(4)
facility modifications;
(5) changes
in authorized possession limits;
(6) actual remediation costs that exceed the
previous cost estimate;
(7) on-site
disposal; and
(8) use of a settling
pond.
Subp. 5. Financial assurance requirements.
A. Financial assurance for decommissioning
must be provided by one of the methods described in items B to F.
B. 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. Prepayment
may be in the form of a trust, escrow account, government fund, certificate of
deposit, or deposit of government securities.
C. A surety method, insurance, or other
guarantee method guarantees that decommissioning costs will be paid. A surety
method may be in the form of a surety bond, letter of credit, or line of
credit. A parent company guarantee of funds for decommissioning costs based on
a financial test may be used if the guarantee and test comply with part
4731.3155, but may not be used in combination with other financial methods to
satisfy the requirements of this part. For commercial corporations that issue
bonds, a guarantee of funds by the applicant or licensee for decommissioning
costs based on a financial test may be used if the guarantee and test comply
with part 4731.3165. For commercial corporations that do not issue bonds, a
guarantee of funds by the applicant or licensee for decommissioning costs may
be used if the guarantee and test comply with part 4731.3170. For nonprofit
entities, such as colleges, universities, and nonprofit hospitals, a guarantee
of funds by the applicant or licensee may be used if the guarantee and test
comply with part 4731.3175. A guarantee by the applicant or licensee may not be
used in combination with other financial methods used to satisfy this part or
in any situation where the applicant or licensee has a parent company holding
majority control of the voting stock of the company. Any surety method or
insurance used to provide financial assurance for decommissioning must:
(1) be open-ended or, if written for a
specified term, such as five years, must be renewed automatically unless 90
days or more before the renewal date, the issuer notifies the commissioner, the
beneficiary, and the licensee of its intention not to renew;
(2) provide that the full face amount be paid
to the beneficiary automatically before the expiration without proof of
forfeiture if the licensee fails to provide a replacement acceptable to the
commissioner within 30 days after receipt of notification of
cancellation;
(3) be payable to a
trust established for decommissioning costs. The trustee and trust must be
acceptable to the commissioner. An acceptable trustee includes an appropriate
state or federal government agency or an entity that has authority to act as a
trustee and whose trust operations are regulated and examined by a federal or
state agency; and
(4) remain in
effect until the commissioner terminates the license.
D. An external sinking fund in which 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, may be used as a method of financial assurance. The surety or insurance
provisions must be as stated in item C. An external sinking fund:
(1) 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; and
(2)
may be in the form of a trust, escrow account, government fund, certificate of
deposit, or deposit of government securities.
E. In the case of federal, state, or local
government licensees, a statement of intent containing a cost estimate for
decommissioning or an amount according to subpart 3 and indicating that funds
for decommissioning will be obtained when necessary may be used as a method of
financial assurance.
F. When a
governmental entity assumes custody and ownership of a site, an arrangement
that is deemed acceptable by the governmental entity may be used as a method of
financial assurance.
Subp. 6. Record keeping.
A. A licensee must keep records of
information important to the decommissioning of a facility in an identified
location until the site is released for unrestricted use.
B. Before licensed activities are transferred
or assigned according to part 4731.0785, subpart 1, item A, a licensee must
transfer all records described in this subpart to the new licensee. The new
licensee is responsible for maintaining the records until the license is
terminated.
C. If records important
to the decommissioning of a facility are kept for other purposes, reference to
the records and their location may be used.
D. Information the commissioner considers
important to decommissioning are:
(1) records
of spills or other unusual occurrences involving the spread of contamination in
and around the facility, equipment, or site, which:
(a) may be limited to instances when
contamination remains after 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; and
(b) must include any known information on
identification of involved nuclides, quantities, forms, and
concentrations;
(2)
as-built drawings and modifications of structures and equipment in restricted
areas where radioactive materials are used or stored and of locations of
possible inaccessible contamination, such as buried pipes, that may be subject
to contamination. If required drawings are referenced, each relevant document
need not be indexed individually. If drawings are not available, the licensee
must substitute appropriate records of available information concerning these
areas and locations;
(3) a list of
the following, contained in a single document and updated every two years:
(a) all areas designated and formerly
designated as restricted areas;
(b)
all areas outside of restricted areas that require documentation under subitem
(1);
(c) all areas outside of
restricted areas where current and previous wastes have been buried as
documented under part 4731.2560; and
(d) all areas outside of restricted areas
that contain material such that, if the license expired, the licensee would be
required to either decontaminate the area to meet the criteria for
decommissioning under part 4731.2100 or apply for approval for disposal under
part 4731.2410; and
(4)
records of:
(a) the cost estimate performed
for the decommissioning funding plan or of the amount certified for
decommissioning; and
(b) the
funding method used for assuring funds if either a funding plan or
certification is used.
Statutory Authority: MS s 144.1202; 144.1203
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