Re: Financial Assurance for educational institutions.

[Sue Dupre <DUPRE%PUCC.bitnet@vmd.cso.uiuc.edu>]

Hello, John.  Being an NRC licensee, we dealt with financial assurance a few
years ago.  We modified our special nuclear material license by decreasing
certain limits to avoid the need for financial assurance; we couldn't duck
the issue for our source material license and had to get a $150K letter of
credit from a local bank.  For our byproduct materials license we had to pull
out all the stops, do a full decommissioning funding plan and provide financial
assurance via a letter of credit for over $2M.

We worked closely with the University Controller's office, who made the actual
arrangements with the bank and who handles the annual renewal of the letters of
credit.  It looks like the annual fee for each letter is one-half of one per-
cent of the face amount, and there is a small additional renewal fee as well.

Is this the sort of information you were looking for?  If you'd like more
detail, write me directly at dupre@pucc.princeton.edu or call me at
(609)258-6252.

Sue Dupre/Health Physicist/Princeton University