ML042950615

S.Texas, Units 1 and 2 - Individual Federal Register Notice - Notice of Consideration of Approval of Application Regarding Proposed Acquisition and Opportunity for a Hearing

ML042950615
Person / Time
Site:	South Texas
Issue date:	11/10/2004
From:	Jaffe D NRC/NRR/DLPM/LPD4
To:	Sheppard J South Texas
Jaffe D, NRR/DLPM, 415-1439
References
TAC MC4732, TAC MC4733
Download: ML042950615 (11)

Text

November 10, 2004 Mr. James J. Sheppard President and Chief Executive Officer STP Nuclear Operating Company South Texas Project Electric Generating Station P. O. Box 289 Wadsworth, TX 77483

SUBJECT:

SOUTH TEXAS PROJECT, UNITS 1 AND 2 - NOTICE OF CONSIDERATION OF APPROVAL OF APPLICATION REGARDING PROPOSED ACQUISITION AND OPPORTUNITY FOR A HEARING (TAC NOS. MC4732 AND MC4733)

Dear Mr. Sheppard:

Enclosed is a copy of a Notice of Consideration of Approval of Application Regarding Proposed Acquisition and Opportunity for a Hearing related to the application dated October 12, 2004, from STP Nuclear Operating Company. This application, filed pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations, seeks NRC approval of the indirect transfer of control of Facility Operating License Nos. NPF-76 and NPF-80 for South Texas Project, Units 1 and 2, respectively, to the extent held by Texas Genco, LP.

This notice is being forwarded to the Office of the Federal Register for publication.

Sincerely,

/RA/

David H. Jaffe, Senior Project Manager, Section 1 Project Directorate IV Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499

Enclosure:

As stated cc w/encl: See next page

November 10, 2004 Mr. James J. Sheppard President and Chief Executive Officer STP Nuclear Operating Company South Texas Project Electric Generating Station P. O. Box 289 Wadsworth, TX 77483

SUBJECT:

SOUTH TEXAS PROJECT, UNITS 1 AND 2 - NOTICE OF CONSIDERATION OF APPROVAL OF APPLICATION REGARDING PROPOSED ACQUISITION AND OPPORTUNITY FOR A HEARING (TAC NOS. MC4732 AND MC4733)

Dear Mr. Sheppard:

Enclosed is a copy of a Notice of Consideration of Approval of Application Regarding Proposed Acquisition and Opportunity for a Hearing related to the application dated October 12, 2004, from STP Nuclear Operating Company. This application, filed pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations, seeks NRC approval of the indirect transfer of control of Facility Operating License Nos. NPF-76 and NPF-80 for South Texas Project, Units 1 and 2, respectively, to the extent held by Texas Genco, LP.

This notice is being forwarded to the Office of the Federal Register for publication.

Sincerely,

/RA/

David H. Jaffe, Senior Project Manager, Section 1 Project Directorate IV Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499

Enclosure:

As stated cc w/encl: See next page DISTRIBUTION: BThomas PUBLIC RidsNrrDripRprp (CHaney)

PDIV-1 Reading RidsOgcRp RidsNrrDlpmLpdiv (HBerkow) RidsAcrsAcnwMailCenter RidsNrrDlpmLpdiv1 (MWebb) RidsRgn4MailCenter (AHowell)

RidsNrrPMDJaffe RidsNrrLADBaxley RidsNrrDlpmDpr (SWall)

ACCESSION NO.: ML042950615 OFFICE PDIV-1/PM PDIV-1/LA OGC PDIV-1/SC(A)

NAME DJaffe DBaxley SUttal(NLO) MWebb DATE 11/10/04 10/27/04 11/9/04 11/10/04 OFFICIAL RECORD COPY

South Texas Project, Units 1 & 2 cc:

Senior Resident Inspector A. H. Gutterman, Esq.

U.S. Nuclear Regulatory Commission Morgan, Lewis & Bockius P. O. Box 910 1111 Pennsylvania Avenue, NW Bay City, TX 77414 Washington, DC 20004 C. Kirksey/C. M. Canady Mr. T. J. Jordan, Vice President City of Austin Engineering & Technical Services Electric Utility Department STP Nuclear Operating Company 721 Barton Springs Road P. O. Box 289 Austin, TX 78704 Wadsworth, TX 77483 Mr. L. K. Blaylock S. M. Head, Manager, Licensing Mr. J. Nesrsta Nuclear Quality & Licensing Department City Public Service Board STP Nuclear Operating Company P. O. Box 1771 P. O. Box 289, Mail Code: N5014 San Antonio, TX 78296 Wadsworth, TX 77483 Mr. C. A. Johnson Environmental and Natural Resources AEP Texas Central Company Policy Director P. O. Box 289 P. O. Box 12428 Mail Code: N5022 Austin, TX 78711-3189 Wadsworth, TX 77483 Jon C. Wood INPO Cox Smith Matthews Records Center 112 East Pecan, Suite 1800 700 Galleria Parkway San Antonio, TX 78205 Atlanta, GA 30339-3064 Director Regional Administrator, Region IV Division of Compliance & Inspection U.S. Nuclear Regulatory Commission Bureau of Radiation Control 611 Ryan Plaza Drive, Suite 400 Texas Department of State Health Services Arlington, TX 76011 1100 West 49th Street Austin, TX 78756 D. G. Tees/R. L. Balcom Texas Genco, LP Brian Almon P. O. Box 1700 Public Utility Commission Houston, TX 77251 William B. Travis Building P. O. Box 13326 Judge, Matagorda County 1701 North Congress Avenue Matagorda County Courthouse Austin, TX 78701-3326 1700 Seventh Street Bay City, TX 77414 October 2004

South Texas Project, Units 1 & 2 Susan M. Jablonski Office of Permitting, Remediation and Registration Texas Commission on Environmental Quality MC-122 P.O. Box 13087 Austin, TX 78711-3087 Mr. Terry Parks, Chief Inspector Texas Department of Licensing and Regulation Boiler Division P. O. Box 12157 Austin, TX 78711 Mr. Ted Enos 4200 South Hulen Suite 630 Ft. Worth, Texas 76109

7590-01-P UNITED STATES NUCLEAR REGULATORY COMMISSION STP NUCLEAR OPERATING COMPANY, ET AL.

SOUTH TEXAS PROJECT, UNITS 1 AND 2 DOCKET NOS. 50-498 AND 50-499 NOTICE OF CONSIDERATION OF APPROVAL OF APPLICATION REGARDING PROPOSED ACQUISITION AND OPPORTUNITY FOR A HEARING The U.S. Nuclear Regulatory Commission (NRC or the Commission) is considering issuance of an order under Section 50.80 of Title 10 of the Code of Federal Regulations (10 CFR) approving the indirect transfer of Facility Operating License Nos. NPF-76 and NPF-80 for South Texas Project (STP), Units 1 and 2, respectively, to the extent held by Texas Genco, LP (Texas Genco).

The application requests the consent of the NRC to the proposed indirect transfer of control of the STP, Units 1 and 2, licenses to the extent held by Texas Genco by virtue of the transfer of ownership of approximately 81 percent of the stock of Texas Genco's indirect parent company, Texas Genco Holdings Inc. (TGN), from CenterPoint Energy, Inc., (CenterPoint Energy) to GC Power Acquisitions, LLC (GC Power). Texas Genco is an indirect subsidiary of TGN and TGN is an indirect subsidiary of CenterPoint Energy. The transaction would result in the indirect transfer of control of Texas Genco's 30.8 percent undivided ownership interest in STP, Units 1 and 2. In addition to its 30.8 percent undivided ownership interest in STP, Units 1 and 2, Texas Genco holds a corresponding 30.8 percent interest in STP Nuclear Operating Company (STPNOC), a not-for-profit Texas corporation, which is the licensed operator of STP,

2 Units 1 and 2. The application further requests, as necessary, approval of the indirect transfer of control of this 30.8 percent interest in STPNOC, to the extent such indirect transfer would result in an indirect transfer of the licenses as held by STPNOC, thereby requiring NRC approval.

(According to the application, Texas Gencos 30.8 percent ownership interest is expected to increase as a result of Texas Gencos exercising its right of first refusal under the Amended and Restated South Texas Project Participation Agreement, pursuant to which Texas Genco has entered into a Purchase and Sale Agreement dated September 3, 2004, to acquire an additional 13.2 percent undivided ownership interest in STP, Units 1 and 2, from AEP Texas Central Company. This acquisition would result in an increase in Texas Gencos ownership interest in STP, Units 1 and 2, and related interest in STPNOC to 44 percent. This transaction will be addressed in a separate application and is not the subject of this notice.)

Pursuant to 10 CFR 50.80, no license shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission gives its consent in writing. The Commission will approve an application for the indirect transfer of a license, if the Commission determines that the proposed transaction effectuating the indirect transfer will not affect the qualifications of the holder of the license, and that the transfer is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto. Before issuance of the proposed Order, the Commission will have made findings required by the Atomic Energy Act of 1954, as amended (the Act), and the Commissions regulations.

The filing of requests for hearing and petitions for leave to intervene with regard to the license transfer application, are discussed below.

Within 20 days after the date of publication of this notice, the licensee may file a request for a hearing with respect to issuance of the amendment to the subject facility operating

3 license and any person whose interest may be affected by this proceeding and who wishes to participate as a party in the proceeding must file a written request for a hearing and a petition for leave to intervene. Requests for a hearing and petitions for leave to intervene shall be filed in accordance with the Commissions rules of practice set forth in Subpart M, Hearing Requests and Procedures for Hearings on License Transfer Applications, of 10 CFR Part 2.

Interested persons should consult a current copy of 10 CFR 2.309, which is available at the Commissions Public Document Room (PDR), located at One White Flint North, Public File Area 01F21, 11555 Rockville Pike (first floor), Rockville, Maryland. Publicly available records will be accessible from the Agencywide Documents Access and Management Systems (ADAMS) Public Electronic Reading Room on the Internet at the NRC Web site, http://www.nrc.gov/reading-rm/doc-collections/cfr/. (Note: Public access to ADAMS has been temporarily suspended so that security reviews of publicly available documents may be performed and potentially sensitive information removed. Please check the NRC Web site for updates on the resumption of ADAMS access.) If a request for a hearing or petition for leave to intervene is filed within 20 days after the date of publication of this notice, the Commission or a presiding officer designated by the Commission or by the Chief Administrative Judge of the Atomic Safety and Licensing Board Panel, will rule on the request and/or petition; and the Secretary or the Chief Administrative Judge of the Atomic Safety and Licensing Board will issue a notice of a hearing or an appropriate order.

As required by 10 CFR 2.309, a petition for leave to intervene shall set forth with particularity the interest of the petitioner in the proceeding, and how that interest may be affected by the results of the proceeding. The petition should specifically explain the reasons why intervention should be permitted with particular reference to the following general requirements: 1) the name, address and telephone number of the requestor or petitioner; 2) the nature of the requestors/petitioners right under the Act to be made a party to the proceeding;

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3) the nature and extent of the requestors/petitioners property, financial, or other interest in the proceeding; and 4) the possible effect of any decision or order which may be entered in the proceeding on the requestors/petitioners interest. The petition must also identify the specific contentions which the petitioner/requestor seeks to have litigated at the proceeding.

Each contention must consist of a specific statement of the issue of law or fact to be raised or controverted. In addition, the petitioner/requestor shall provide a brief explanation of the bases for the contention and a concise statement of the alleged facts or expert opinion which support the contention and on which the petitioner/requestor intends to rely in proving the contention at the hearing. The petitioner/requestor must also provide references to those specific sources and documents of which the petitioner/requestor is aware and on which the petitioner intends to rely to establish those facts or expert opinion. The petition must include sufficient information to show that a genuine dispute exists with the applicant on a material issue of law or fact. Contentions shall be limited to matters within the scope of the amendment under consideration. The contention must be one which, if proven, would entitle the petitioner/requestor to relief. A petitioner/requestor who fails to satisfy these requirements with respect to at least one contention will not be permitted to participate as a party.

Those permitted to intervene become parties to the proceeding, subject to any limitations in the order granting leave to intervene, and have the opportunity to participate fully in the conduct of the hearing.

Nontimely requests and/or petitions and contentions will not be entertained absent a determination by the Commission or the presiding officer of the Atomic Safety and Licensing Board that the petition, request and/or the contentions should be granted based on a balancing of the factors specified in 10 CFR 2.309(a)(1)(i)-(viii).

A request for a hearing or a petition for leave to intervene must be filed by: 1) first class mail addressed to the Office of the Secretary of the Commission, U.S. Nuclear Regulatory

5 Commission, Washington, DC 20555-0001, Attention: Rulemaking and Adjudications Staff;

2) courier, express mail, and expedited delivery services: Office of the Secretary, Sixteenth Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland, 20852, Attention:

Rulemaking and Adjudications Staff; 3) E-mail addressed to the Office of the Secretary, U.S.

Nuclear Regulatory Commission, HEARINGDOCKET@NRC.GOV; or 4) facsimile transmission addressed to the Office of the Secretary, U.S. Nuclear Regulatory Commission, Washington, DC, Attention: Rulemakings and Adjudications Staff at (301) 415-1101, verification number is (301) 415-1966. A copy of the request for hearing and petition for leave to intervene should also be sent to the Office of the General Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and it is requested that copies be transmitted either by means of facsimile transmission to 301-415-3725 or by email to OGCMailCenter@nrc.gov. A copy of the request for hearing and petition for leave to intervene should also be sent to Mr. John E.

Matthews, Morgan, Lewis, & Bockius, LLP, 1111 Pennsylvania Avenue, NW, Washington, DC 20004, attorney for the licensee.

The Commission will issue a notice or order granting or denying a hearing request or intervention petition, designating the issues for any hearing that will be held, and designating the presiding officer. A notice granting a hearing will be published in the Federal Register and served on the parties to the hearing.

For further details with respect to this action, see the application dated October 12, 2004, of which, a nonproprietary version is available for public inspection at the Commission's PDR, located at One White Flint North, Public File Area 01 F21, 11555 Rockville Pike (first floor), Rockville, Maryland, and accessible electronically through the Agencywide Documents Access and Management System (ADAMS) Public Electronic Reading Room on the Internet at the NRC Web site, http://www.nrc.gov/reading-rm/adams/html. (Note: Public access to ADAMS has been temporarily suspended so that security reviews of publicly available

6 documents may be performed and potentially sensitive information removed. Please check the NRC Web site for updates on the resumption of ADAMS access.) Persons who don't have access to ADAMS or who encounters problems accessing the documents located in ADAMS, should contact the NRC PDR Reference staff by telephone at 1-800-397-4209, 301-415-4737, or by e-mail to pdr@nrc.gov.

Dated at Rockville, Maryland this 10th day of November 2004.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

David H. Jaffe, Senior Project Manager, Section 1 Project Directorate IV Division of Licensing Project Management Office of Nuclear Reactor Regulation