ML19030A581

Aerotest Operations, Inc., Letter Requesting Reimbursement of Fees Paid

ML19030A581
Person / Time
Site:	Aerotest
Issue date:	01/22/2019
From:	Slaughter D Aerotest
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML19030A581 (4)

Text

AEROTEST OPERATIONS, INC. 3455 FOSTORIA WAY* SAN RAMON, CA 94583 * (925) 866-1212

• FAX (925) 866-1716 January 22, 2019 ATTENTION:

Document Control Desk NR<S'.s_Cliief Ffnaneia[Officer=:

U.S. Nuclear Regulatory Commission White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 AEROTEST RADIOGRAPHY AND RESEARCH REACTOR DOCKET NO. 50-228/LICENSE NO. R-98. Ladies and Gentlemen:

Let me introduce myself as David M. Slaughter, PhD, the President of Aerotest Operations Inc., For decades, I have had past successful experiences with NRC teams in relation to the University of Utah's research reactor as the former director of the C.E.N.T.E.R.

and professor guiding nuclear engineering candidates, as well as a reviewer participant on visiting teams for formal review of other reactors/directors across the country. My long history in nuclear engineering research, knowledge of the performance of research reactors, and education and training of staff and students prepared me well to later own Aerotest Operations Inc. As you know, it is necessarily a complex (and costly process) to transfer an existing reactor license. In the case of ARRR(R-98), it was even more so which began in 2012. In July 2017, I purchased 100 percent of the stock in the company that possessed a part 50 license, R-98. Based on my prior experience, I planned for what should have been a 6-to-9 month effort to perform a restart activity.

Yet NRC-related activities have dragged on beyond 17 months with no end in sight. Some processes requiring NRC staff involvement still remain unresolved at the writing of the December 201.8 letter declaring the intent to decommission the license. These circumstances have contributed significantly to expensive delays. It is not clear to me if such delays are the outcome of systemic processes within the NRC or have been created by individual personnel or likely a combination of both. While I believe a licensee should be held responsible for failings of our own obligations, in the same vein I strongly believe NRC staff should be held responsible-even financially responsible-for their actions or lack of actions that cause or contribute to an egregious failure of progress, particularly when services provided and cost reimbursement to the NRC are required by law. I request reimbursement of only some of the costs paid to the NRC from 2005 to 2018 in the amount of $2,482,682.31-for itemized fees, inspection services, and more that were not performed in a satisfactory manner. Payments made to the NRC are summarized in the attached spreadsheet that represents only a fraction of the total payments made during this time period.

Aerotest Operations and the NRC have documented evidence of the catastrophic failure of the safety culture. What ultimately protected the public and environment was an inherently well-engineered UZrHx fuel. Due to their ineffective interactions and bloated :financial charges, the NRC staff caused a effect" on the circumstances surrounding this reactor, which are stunning and sad given that many of the processes associated with this facility required direct NRC staff oversight.

NRC correspondence, NRC inspection reports, and meeting minutes of ARRR safeguard committee--provided an altered picture from the reality of the reactor's actual condition and operating circumstance.

I would like to be part of the greater dialogue to promote safe practices and effective unfettered communication between the nuclear reactor licensee and NRC staff. These improvements will result in a safer environment for radiation workers and the public. I trust that the proposed open discussions will be without fear of retaliation, intimidation, or harassment concerning the licensee's past compliance and concerns with the ignorance (or, worse, arrogance) of the NRC staff in their obligation to regulatory oversight.

The nuclear safety culture for the ARRR reactor or any other licensed facility must consist of core values and behaviors resulting from collective commitments by the licensee, safety committee, and the NRC staff that should result in the protection of people and the environment.

Expertise employed by the licensee must act with the operational knowledge of the reactor and the fuel it utilizes.

The administrative and operating staff must be fully invested in compliance with good safety practices well beyond the minimal regulatory obligations.

The existing ARRR staff failed to meet the required standard.

The safeguards committee included skilled members outside operating staff who are familiar with the NRC regulations, operation,.

and radiation protection programs.

However, the safeguards committee chap:er was antiquated and open to interpretation, which limited the committee's effectiveness.

Due to the ch~rter's perceived limited scope, relevant information and/or reviews were not provided or performed.

Likewise, members of the NRC staff should have the expertise to understand the operational principles of the facilities and the basis of the regulations to develop reasonable compliance solutions that meet the intent, performing their required tasks in a professional, cost-effective, and timely manner. The NRC staff failed to meet the required standard.

During the upcoming months, I will be submitting a license amendment for possession-only status and preparing the decommissioning plan for the ARRR (R-98). I will also document the issues that are present along with a root-cause analysis for the failure of the ARRR restart activity.

Should you have any questions or require additional information regarding this submission, please contact. me at 801-631-5919 and dmsraven@gmail.com.

I declare under penalty of perjury that the statements above are correct and truthful.

tspectfully, ~M-~ President and Reactor Administrator General Manager and Manager cc. U.S. Nuclear Regulatory Commission Office of the Inspector General Mail Stop 05-El3 11555 Rockville Pike Rockville, MD 20852 1:54PM AEROTEST OPERATIONS, INC. 12/18/18 Accrual Basis Custom Transaction Detail Report All Transactions Total Project Date Num Name Memo Amount lndemity Annual Inspection Safety Renewal Restart Other Managemen1 Transfer -Check 03/08/2005 10123 NRC Part 50 Routine 13,188.00 13,188.00 Check 03/24/2005 10211 NRC Indemnity Fee (Aprtl 051hr Aprtl 08) 100.00 100.00 Check 04/26/2005 10302 NRC PM 8,792.00 8,792.00 Check 08/08/2005 10618 NRC Annual Permit Fee (License No. R-98) 59,500.00 59,500.00 Check 08/08/2005 10619 NRC PM 12,953.00 12,953.00 Check 10/20/2005 10867 NRC Routine Reactive Inspections 8,792.00 8,792.00 Check 10/20/2005 10868 NRC PM 13,090.00 13,090.00 Check 02/07/2006 11207 NRC PM 20,213.00 20,213.00 Check 03/07/2006 11287 NRC Indemnity Fee (4-16-08 lhru 4-15-07) 100.00 100.00 Check 04/21/2008 11448 NRC PM 17,466.00 17,466.00 Check 08/10/2008 11731 NRC FY Annual Fee 80,100.00 80,100.00 Check , 08/10/2006 11745 NRC PM 13,633.00 13,633.00 Check 10/23/2006 11967 NRC PM 1,407.00 1,407.00 Check 01/26/2007 12264 NRC Review of Part 50 7,985.60 7,985.60 Check 01/26/2007 12274 NRC Part 60 Routine (9/17/06-12/23/06) 13,229.00 13,229.00 Check 01/26/2007 12266 NRC Review of Part 60 $866/PM $7985 8,854.00 869.00 7,985.00 Check 02/06/2007 NRC Part 50*Routlne o.oo Check 03/29/2007 12439 NRC Indemnity Fee(4-16-07 lhru 4-15-08) 100.00 100.00 Check 04/20/2007 12534 NRC PM 3,342.00 3,342.00 Check 06/06/2007 12671 NRC Docke1 No. 50-228 27.00 27.00 Check 07117/2007 12804 NRC Dockal No. 50-228 27.00 27.00 Check 07/26/2007 12852 NRC PM 9,765.00 9,765.00 Check 06/16/2007 12915 NRC FY 2007 ANNUAL FEE 76,300.00 76,300.00 Check 10/18/2007 13121 NRC PM 16,507.00 16,507.00 Check 10/1812007 13122 NRC Routine Inspections 16,445.00 16,445.00 Check 02/04/2008 13472 U.S.NUCL.EPM 6,424.00 6,424.00 Check 04/10/2008 13665 U.S.NUCLE Indemnity Fee-License R-96 100.00 100.00 Check 04/18/2008 13716 NRC PM 8,772.00 8,772.00 Check 07/22/2008 13977 U.S.NUCL.1:PM 6,392.00 5,392.00 Check 08/08/2008 14035 NRC Routine Inspection 25,800.00 25,800.00 Check 06/25/2008 14084 NRC Annual Fee 76,500.00 76,500.00 Check 10/1712008 14248 NRC Review of Part 50 6,129.00 6,129.00 Check 02/09/2009 14592 NRC PM 68,473.00 68,473.00 Check 03/10/2009 14665 . U.S.NUCLE indemnity Fee 100.00 100.00 Check 04/16/2009 14769 U.S.NUCLE PM 74,018.00 74,018.00 Check 07/23/2009 14999 NRC PM 102,388.00 102,388.00 Check 08/10/2009 15073 U.S.NUCLE FY 2009 License R-98 Renewal 87,600.00 67,600.00 Check 10/21/2009 15246 U.S.NUCL.E Review of part 50 17,136.00 17,136.00 Check 10/27/2009 15251 U.S.NUCLE Review of Part 60 $257/PM $476 733.00 257.00 476.00 Check 02/0812010 15526 NRC Review of Part 50 $1028/PM $9354 10,383.00 1,028.00 9,355.00 Check 04/27/2010 15708 U.S.NUCL.1:

Review pf Part 50 $17912/PM

$6450.70 24,364.00 6,452.00 17,912.00 Check 05/12/2010 15771 NRC Indemnity Fee 100.08 100.08 Check 07/30/2010 15954 U.S.NUCL.1:

Routine/Reactive lnspectlons(3/26-7/03/10) 18,504.00 18,504.00 Check 07130/2010 15955 U.S.NUCL.1:

Review of Part 50$11950/PM

$28038. 70 39,989.00 28,039.00 11,950.00 Check 08/24/2010 15954 U.S.NUCLE FY 2010 Annual Fee 81,700.00 81,700.00 Check 10/25/2010 16090 U.S.NUCL.E Review of Part 50 $1150 / PM $12817.20 14,467.00 12,917.00 1,550.00 Check 03/10/2011 16346 u.s.NUCLE Inspection Report 26 hrs /Transfer 18 hrs 15,151.50 10,360.00 518.00 129.50 4,144.00 Check 04/13/2011 16390 U.S.NUCL.E Indemnity Fee 100.00 100,00 Check 05/31/2011 16467 NRC Ucense Transfer Fee 518.00 518.00 Check 08/12/2011 16566 NRC PM 17,096.59 17,096.59 Check 09/16/2011 16620 U.S.NUCLE Annual License Fee(10-01-2010-9-30-2011) 86,300.00 86,300.00 Page 1 of2 1:54PM AEROTEST OPERATIONS, INC. 12/18/18 Accrual Basls Custom Transaction Detail Report All Transactions Date Num Name Memo Amount lndemity Annual Inspection Safety Renewal Restart Other Management Transfer Check 11/21/2011 16710 U.S.NUCLE Inspection 58 hrs/over head 64.08 hrs 32,037.18 15,022.00 16,756.18 259.00 Check 03/16/2012 16869 U.S.NUCLE Indemnity Fee 100.00 100.00 Check 03/16/2012 16875 U.S.NUCLE Review of Part 50. PM 25,025.91 25,025.91 Check 05/03/2012 16947 NRC Inspection 68 hrs/safety 214 hrs/PM 16 hrs 86,030.49 18,563.00 61,971.00 5,498.49 Check 08/24/2012 17119 NRC lnspecllon 56 hrs/safety 234.5 hrsnranafer 43/pm 105.5 hrs 163,936.50 19,110.00 103,467.00 29,620.50 11,739.00 Check 08/29/2012 17132 NRC Annual Fee License R-98 34,700.00 34,700.00 Check 08/29/2012 17140 U.S.NUCLE Annual Fee R-98 34,700.00 34,700.00 Check 11/14/2012 17238 NRC Safety 165.50 hrs/Transfer 175.75 hrs/Inspection 166 hrs 156,234.75 45,372.00 45,181.50 19,686.00 47,995.25 Check 01/14/2013 17335 U.S.NUCLE Cynthia Montgomery 6,198.36 6,198.36 Check 02/27/2013 17399 NRC Safety 48 hrs/Transfer 240 hrs~nspectlon 48 hrs 155,084.00 13,152.00 40,278.00 35,757.00 65,897,00 Check 03/04/2013 17408 NRC Late Fee 7.00 7.00 Check 04/25/2013 17489 NRC Safety Rlvlew 115 hrs/Transfer 126.5 hrs/PM 121 hrs 99,325.00 31,510.00 33,154.00 34,661.00 Check 05/02/2013 17495 NRC BDN-NN-13-0018 100.00 100.00 Check 08/05/2013 17636 NRC Safety 90hrs/Transler 73.25 hrs/ PM 101.75 hrs 72,610.00 24,660.00 20,070.50 27,879.50 Check 09/06/2013 17673 NRC Annual Fees 81,600.00 81,600.00 Check 11/06/2013 17767 U.S.NUCLE Safety Rlevew 104 hrs/Transfer 82.50 hrs/PM 56.25 67,804.00 28,288.00 17,076.00 22,440.00 Check 03/10/2014 17935 U.S.NUCLE BDN NN-14-0019 100.00 100.00 Check 03/10/2014 17936 U.S.NUCLE Safety Review 8 hrs/PM 5.36hrs 3,643.95 2,176.00 10.00 1,457.95 Check 04/22/2014 18009 NRC PM Changes 30 hrs 8,296.00 8,296.00 Check 08/18/2014 18168 NRC Indirect Transfer 126 hrs/PM 53.65 hrs 57,908.80 14,592.80 43,316.00 Check 09/24/2014 18= NRC Annual Fees 84,500.00 84,500.00 Check 11/18/2014 18296 NRC Transfer 244.25 hrs/PM 33 hours3.819444e-4 days <br />0.00917 hours <br />5.456349e-5 weeks <br />1.25565e-5 months <br /> 75,427.05 8,987.55 66,439.50 Check 02/06/2015 18434 NRC 2014201/0500028 64 hrs and PM Charges 27.5 hrs 25,458.75 17,856.00 7,602.75 Check 03/30/2015 18513 U.S.NUCLE Rel: 050-00228 D 100.00 100.00 Check 09/23/2015 18757 NRC Docket #05000228 (Pertod 7/01/2015-09/30/2015) 83,500.00 83,500.00 Check 03/23/2016 19033 U.S.NUCLE BIii No, NN-16-0016 100.00 100.00 Check 05/26/2016 19118 U.S.NUCLE NRC Fees 20,381.58 268,00 7.00 20,106.58 Check 08/10/2016 19236 NRC Proof of Flnenclal protectlonrrransfer 1 OB hrs 30,680.64 30,680.64 Check 09/06/2016 19267 NRC ANNUAL FEE 81,500.00 81,500.00 Check 11/04/2016 19357 NRC Proof o!Flnancial protection/Transfer 221.75 hours8.680556e-4 days <br />0.0208 hours <br />1.240079e-4 weeks <br />2.85375e-5 months <br /> 62,965.33 62,965.33 Check 02/17/2017 19516 NRC QTR. 9/18/16thru 12/24/16 (Part 170) 15,028.15 850.65 14,177.50 Check 04/19/2017 19612 NRC SRI Allocation Costs 11,797.80 530,00 667.80 10,600.00 Check 05/19/2017 19656 NRC BIii No, NN-17-0014 100.00 100.00 Check 07/24/2017 19758 U.S.NUCLE Fingerprinting Backgrnd Check for DMS 10.00 10.00 Check 07/26/2017 19772 U.S.NUCLE LFB 17-4184 16,783.78 8,480.00 950,03 7,353.75 Bill 09/01/2017 LFB-17 -5273 U.S.NUCLE 6/1/17-9/30/17 81,400.00 81,400.00 Bill 10/25/2017 LFB 18-0411 U.S.NUCLE 6/25/17-9/30/17 10,662.54 861.25 603.54 9,197.75 Bill 01/23/2018 05000228 U.S.NUCLEAR REGULATORY COMM. 3,136.28 1,183.50 1,426.78 526,00 Bill 04/26/2018 05000228 U.S.NUCLE 12/24/17-3/31/16 27,529.53 18,541.50 8,988.03 Bill 06/12/2018 Criminal Check U.S.NUCLE finger prtntlng 10.00 10.00 Bill 07/19/2018 LFB 18-4924 U.S.NUCLE Docket# 05000228 81,473.46 56,479.25 7,627.00 5,851.75 11,515.46 Bill 08/28/2018 U.S.NUCLEAR REGULA TORY COMM. 10.00 10.00 Bill 08/28/2018 LFB 18-5687 U.S.NUCLE Per Small Business Form 526 850.00 850.00 Bill 10/25/2018 LFB19-0384 NRC LFB19-0384 Docket #05000228 Small Business Fees 3,343.59 1,908.63 845.80 589.16 Total 2,996,344.19 1,300.08 1,030,750.00 279,554.91 349,473.75 78,981.88 8,472.80 5,905.75 729,543.22 512,361.80 Page 2 or 2