Appendix B, Table II in sealed sources or plated

foils. (For a combination of isotopes, if R, as defined in 105 CMR 120.125(C)(2), divided by 10 is greater than 1.) $113,000 (a) Licensees required to submit the $1,125,000 amount must do so by October 6, 2006. (b) Licensees required to submit the $113,000 or $225,000 amount must do so by April 6, 2007. (6) (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 105 CMR 120.245 criteria for unrestricted use, provided that, if the applicant or licensee can demonstrate its ability to meet the provisions of 105 CMR 120.246, the cost estimate may be based on meeting the 105 CMR 120.246 criteria; c. The volume of onsite subsurface material containing residual radioactivity that will require remediation to meet the criteria for license termination; and d. An adequate contingency factor. 2. Identification of and justification for using the key assumptions contained in the cost estimate for decommissioning; 3. A description of the method of assuring funds for decommissioning from 105 CMR 120.125(C)(7), 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 of the financial instrument obtained to satisfy the requirements of 105 CMR 120.125(C)(7) (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. (7) The financial instrument must include the licensee's name, license number, and docket number, and the name, address, and other contact information of the issuer, and, if a trust is used, the trustee. When any of the foregoing information changes, the licensee must, within 30 days, submit financial instruments reflecting such changes. The financial instrument submitted must be a signed original or signed original duplicate, except where a copy of the signed original is specifically permitted. Financial assurance for decommissioning must be provided by one or more of the following methods: (a) Prepayment. 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 must be made into a trust account, and the trust must be acceptable to the Agency. (b) A Surety Method, Insurance or Other Guarantee Method. These methods guarantee that decommissioning costs will be paid should the licensee default. 1. A surety method may be in the form of a surety bond, issued by a corporate surety company authorized to transact business in the Commonwealth; or an irrevocable letter of credit. 2. A parent company guarantee of funds for decommissioning costs may be used if the guarantee and test are as contained in 105 CMR 120.198: Appendix D. A parent company guarantee may not be used in combination with other financial methods to satisfy the requirements of 105 CMR 120.125(C). 3. 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 are as contained in 105 CMR 120.198: Appendix E. 4. For commercial companies 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 are as contained in 105 CMR 120.198: Appendix F. 5. 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 are as contained in 105 CMR 120.198: Appendix G. 6. Any surety method or insurance used to provide financial assurance for decommissioning must contain the following conditions: a. The surety method or insurance must be open-ended or, if written for a specified term, such as five years, must 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. The surety method or insurance must also provide that the full face amount be paid to the beneficiary automatically prior to the expiration 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. b. The surety method or insurance must be payable to a trust established for decommissioning costs. The trustee and trust must be acceptable to the Agency. An acceptable trustee includes an appropriate state or federal government agency or an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency. c. The surety method or insurance must remain in effect until the Agency has terminated the license. (c) An External Sinking Fund. 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. 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. An external sinking fund must be in the form of a trust. If the other guarantee method is used, no surety or insurance may be combined with the external sinking fund. The surety or insurance provisions must be as stated in 105 CMR 120.125(C)(7)(b). (d) Statement of Intent. In the case of federal, state, or local government licensees, a statement of intent containing a cost estimate for decommissioning or an amount pursuant to 105 CMR 120.125(C)(5), and indicating that funds for decommissioning will be obtained when necessary. (8) Each person licensed under 105 CMR 120.100 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 consists of: (a) Records of spills or other unusual occurrences involving the spread of contamination in and around the facility, equipment, or site. 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. These records must include any known information on identification of involved nuclides, quantities, forms, and concentrations. (b) As-built drawings and modifications of structures and equipment in restricted areas where radioactive materials are used and/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 shall substitute appropriate records of available information concerning these areas and locations. (c) Except for areas containing only sealed sources (provided the sources have not leaked or no contamination remains after any leak) or radioactive materials having only half-lives of less than 65 days, a list contained in a single document and updated every two years, of the following: 1. all areas designated and formerly designated restricted areas as defined in 105 CMR 120.005; 2. all areas outside of restricted areas that require documentation under 105 CMR 120.125(C)(8)(a); 3. all areas outside of restricted areas where current and previous wastes have been buried as documented under 105 CMR 120.269; and 4. all areas outside of restricted areas which contain material such that, if the license expired, the licensee would be required to either decontaminate the area to unrestricted release levels or apply for approval for disposal under 105 CMR 120.252. (d) 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. (9) The following specific licensees are required to make financial surety arrangements: (a) major processors; (b) waste handling licensees; (c) former U.S. Atomic Energy Commission or NRC licensed facilities; and (d) all others except persons exempt pursuant to 105 CMR 120.125(C)(10). (10) The following persons are exempt from the requirements of 105 CMR 120.125(C)(1): (a) persons authorized to possess no more than 1,000 times the quantity specified in 105 CMR 120.196: Appendix B, Table 1 or combination of radioactive material listed therein as given in 105 CMR 120.196: Appendix B, Table 1, Note 1; (b) persons authorized to possess radioactive noble gases in sealed sources with no radioactive daughter product with half-life greater than 30 days.