CY-97-065, Requests Exemptions from Insurance Coverage & Financial Protection Requirement Limits of 10CFR50.54(w) & 10CFR140.11 for Hnp,Effective 980101
| ML20217H778 | |
| Person / Time | |
|---|---|
| Site: | Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png |
| Issue date: | 10/07/1997 |
| From: | Feigenbaum T CONNECTICUT YANKEE ATOMIC POWER CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| CY-97-065, CY-97-65, SECY-96-256-C, NUDOCS 9710170066 | |
| Download: ML20217H778 (7) | |
Text
s CONNECTICUT YANKEE ATOMIC POWER COMPANY HADDAM NECK PLANT 302 INJUN HOLLOW ROAD e EAST HAMPTON. CT 0642447JJ October 7,1997 Docket No. 50 213 CY-97-065 Re:
10CFR50.12 10CFR50.54(w) 10CFR140.8 10CFR140.11 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Haddam Neck Plant Request For Exemptions From The Financial Protection Requiremerit Limits Of 10CFR50.54(w) And 10CFR140.11 The purpose of this letter is for Connecticut Yankee Atomic Power Company (CYAPCO) to request exemptions, to be effective January 1,1998, from the insurance coverage and financial protection requirement limits of 10CFR50.54(w) and 10CFR140.11 for the Haddam Neck Plant (HNP). These exemptions are requested in accordance with 10CFR50.12, " Specific Exemptions" and 10CFR140.8 " Specific Exemptions."
The HNP was shutdown on July 22,1996, and in a letter dated December 5,1996,W CYAPCO informed the NRC that the Board of Directors of CYAPCO had decided to 7
permanently cease operations at the HNP and that the fuel had been permanently removed from the reactor. Therefore, this exemption k being requested in recognition of the fact that with the HNP permanently shutdown and defueled, the potential risk to dg/
public health and safety is substantially reduced.
(1)
T C. Feipeabaum letter to the U. S. Nuclear Regulatory Commission, "Certificet;ons Of Permanent Cessation Of Power Operation And That Fuel Has
,,m ppen Permanently Removed From The Reactor," dated December 5,1996.
9710170066 971007 ADOCK0500g3=
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U. S. Nucl:ar Regul: tory Commission CY 97 065/Page 2 EXEMPTION REQUESTS CYAPCO hereby requests an exemption from the requirement of 10CFR50.54(w) which requires licensees to maintain $1.06 billion in onsite insurance coverage. CYAPCO requests that it maintain $50 mi!! ion in onsite insurance coverage.
CYAPCO hereby requests an exemption from the requirement of 10CTR140.11 which requires licensees to maintain $200 million in offsite financial protection. CYAPCO requests that it maintain $100 million in offsite financial protection.
QlSCUSSION in SECY 96 256,* the NRC discusses its plan for a rulemaking change to 10CFR50.54(w) and 10CFR140.11 to reflect the risk associated with a permanently defueled plant. SECY-96-256 classifies a permanently defueled reactor into one of four categories. These categories are:
" Reactor Configuration 1:
Reactor is defueled, permanently shutdown, and spent fuel in the spent fuel pool is susceptible to a zircaloy cladding fire if the spent fuel pool is drained accidentally. This configuration encompasses the period commencing immediately after the offload of the core to just prior to when the decay heat of the hottest assemblies is low enough that no rapid zircaloy oxidation will take place and the fuel cladding will remain intact, such as no gap release, in the event of loss of water in the spent fuel pool."
" Reactor Configuration 2:
. Reactor is defueled, permanently shutdown, and spent fuel is in the spent fuel pool but is not susceptible to a zircaloy cladding fire or gap release caused by an incipient fuel cladding failure in the event the spent fuel poolis drained accidentally In this configuration, the spent fuel can be stored on a long-term basis in the spent fuel pool without the possibility of initiating a zircaloy fire or significant fuel cladding failure. In addition, the site may contain a radioactive inventory of liquid radwaste, activated reactor components, and contaminated structural materials. The radioactive inventory during this configuration may change depending on the licensoe's proposed shutdown activities and schedule."
(2)
SECY-96-256, " Changes To The Financial Protection Requirements For Permanently Shutdown Nuclear Power Reactors, 10CFR50.54(w)- And 10CFR140.11," dated December 17,1996.
1 U. S. Nuclear Regulatory Commission CY-97-065/Page 3 l
" Reactor Configuration 3:
Reactor is permanently shutdown and no spent fuel is in the reactor or the spent fuel pool. All spent fuel has been removed to an offsite or ontite dry storage ISFSI or to a DOE high-level repository. The remaining radioactive inventory depends on the decommissioning status and will include liquid radwaste, activated reactor components, and contaminated structural materials."
" Reactor Configuration 4:
Same as Reactor Configuration 3, except the reactor site has no significant amount of mobile sources of radioactivity such as contaminated liquids (less than 1000 gallons)."
It is CYAPCO's opinion, that as of January 1,1998, the HNP will be in the category called Reactor Configuration 2.*
SECY-96-256 then discusses what the financial insurance requirements would be for each of the categories:
Reactor Configuration 1 Onsite insurance coverage reauirements - $1.06 billion Onsite insurance coverage requirement remains as presently specified in 10CFR50.54(w).
Offsite financial orotection requirements - $200 million Offsite financial protection requirement remains as presently specified in 10CFR140.11.
(3)
T. C. Feigenbaum letter to the U. S. Nuclear Regulatory Commission,
" Assessment Of The Beyond Design Basis Event, Loss Of All Water in The Spent Fuel Pool," dated September 26,1997.
U. S. Nucle:r Regulatory Commission CY-97-065/Page 4 Reactor Configuration 2 Onsite insurance coverage reauirements - $25($50 million The amount of $25 million is based on the estimated amount to recover from a postulated fuel handling accident in the spent fuel pool and an onsite radioactive liquid inventory of less than 1000 gallons. The amount of $50 million is to account for a rupture of a large slightly contaminated radioactive waste storage tank.
Offsite financial orotection reauirements - $100 million The amount is based on the potential for significant judgments or settlements resulting from litigation despite neglig;ble offsite consequences.
Reactor Configuration 3:
Onsite insurance coverage recuirements - $50/$25 million The amount of $50 million is based on the estimated amount to recover from a postulated onsite event of a rupture of a large slightly cow.aminated radioactive waste storage tank. If the onsite radioactive liquid inventory is less than 1000 gallons, the insurance amount will be $25 million.
Offsite financial orotection requirements - $50 million The amount is based on the potential for significant judgments or settlements resulting from litigation that might still be instituted, but where the liability risk is considered less than in Reactor Configuration 2, despite negligible offsite consequences.
U. S. Nucle:r R gul: tory Commission CY-97-065/Page 5.
Reactor Configuration 4:
Onsite insurance coverage recuirements - $25/$0 million The amount of $25 million based on the possibility of having to cleanup onsite contamination from an accidental rupture of a less than 1000 gallon radwaste tank during shutdown activities. Elimination of onsite insurance coverage is acceptable when the licensee is awaiting confirmatory survey results for license termination.
Offsite financial orotection reauirements - $25 million The amount is based on the potential for claims based upon asserted offsite consequences. This would minimize the possibility that the federel government indemnification would be required. it should also be noted that the Atomic Energy Act does not allow a 10CFR50 licensee to entirely drop this coverage, only to reduce it.
BASIS FOR EXEMPTION REQUESTS 10CFR50.12, " Specific Exemptions," describes the criteria that licensees must meet in order for the NRC to grant an exemption from the requirements of 10CFR50. The NRC may grant exemptions from 10CFR50 regulations which are authorized by law, if special circumstances exist, an undue risk to the public will not be present, and the exemption is consistent with the common defense and %urity.
10CFR140.8, " Specific Exemptions," describes the criteria that licensees must meet in order for the NRC to grant an exemption from the requirements of 10CFR140. The NRC may grant exemptions from 10CFR140 regulations which are authorized by law, and are otherwise in the public interest.
Since the criteria of 10CFR50.12(a)(1) and 10CFR50.12(a)(2) are more restrictive than the criteria of 10CFR140.8, the criteria of 10CFR50.12 will be used to evaluate both exemptions.
These exemption requests are in accordance with the general exemption criteria of 10CFR50.12(a)(1) and special circumstances required by 10CFR50.12(a)(2).
l
U. S. Nucirr R:gul: tory Commission CY-97-065/Page 6 As discussed below, CYAPCO's requesta satisfy the standards for the regulatory exemption.
a.
Exemotion Criteria of 10CFR50.12(a)(1) e Authorized by law. The requested exemptions are plainly authorized by law. The Commission has routinely granted insurance exemptions for commercial nuclear power plants that are permanently shutdown and located on single sites, such as the HNP.
Those plants granted insurance exemptions include: Humboldt Bay Power Plant Unit No. 3, La Crosse Boiling Water Reactor, Shoreham Nuclear Power Station, Fort St. Vrain Nuclear Generating Station, and Yankee Nuclear Power Station. In addition, the requested exemptions are consistent with the NRC rulemaking plan discussed in SECY-96-256.
No undue risk to the oublic health and safety.
The requested exemptions present no undue risk to the public health and safety.
The HNP has permanently ceased operations and the fuel has been permanently removed from the reactor. As discussed in SECY-96-256, the potential risks associated with the HNP in the Reactor Configuration 2 condition are substantially reduced from those of power ooerations.
Consistent with the common defense and securig The e
requested exemptions are consistent with the common defense and security. Approval of these exemptions will not compromise physical security or the safeguarding of spent fuel.
b.
Exemotion Criteria of 10CFR50.12(a)(2) (ii). (iii). and (vil (ii)
Acolication is not necessarv to achieve the underlying ouroose.
Approval of these exemption requests will not undermine or reduce the obligations of CYAPCO to protect the public health and safety. Special circumstances, that is, permanent cessation of power operations and thus, a substantially reduced potential risk to public health and safety, exist such that the basis of 10CFR50.54(w) and 10CFR140.11 are no longer applicable.
U. S. Nuclerr Regul tory Commission CY 97-065/P gs7 (iii)
Comoliance with the full reauirements would result in financial hardship.
Continued compliance with the 10CFR50.54(w) and 10CFR140.11 requirements presents a financial hardship in that it requires expenditure ~ in excess s
of those appropriate for a plant in Reactor Configuration 2.
(vi)
Material circumstance not considered when the regulation was adooted,10CFR50.54(w) and 10CFR140.11 are based on the risks associated with operating reactors. These risks are no longer applicable for the HNP Proposed rulemaking is in process to revise the different material circumstances for permanently defueled plants and plants undergoing decommissioning.
CONCLUSION The risks for which 10CFR50.54(w) and 10CFR140.11 require a licensee to obtain specific financial protection amounts for an operating plant are no longer applicable to the HNP. The guidelines discussed in SECY 96-256 provide for a reduced level of insurance coverage appropriate for a permanently defueled plant. Therefore, CYAPCO respectfully requests the NRC_ Staff to exempt the HNP from the financial protection requirements for an operating plant and approve reduced financial protection coverage for a permanently defueled plant of $50 million in onsite insurance coverage and
$100 million in offsite financial protection consistent with Reactor Configuration 2, as described in SECY-96-256.
If the NRC should have any questions, please contact Mr. G. P, van Noordennen at (860)267-3938.
Very truly yours, CONNECTICUT YANKEE ATOMIC POWER COMPANY fff &
~
T. C. Feigen m
Executive ice President and Chief Nuclear Officer cc:
H. J. Miller, NRC Region i Administrator M. B. Fairtile, NRC Senior Project Manager, Haddam Neck Plant W. J. Raymond, NRC Senior Resident inspector, Haddam Neck Plant D. Galloway, Acting Director, CT DEP Monitoring and Radiation Division
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