ML071000063

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Revision to Safety Evaluation Supporting Order Approving Transfer of License and Conforming Amendment Regarding Palisades Nuclear Plant
ML071000063
Person / Time
Site: Palisades  
(DPR-020)
Issue date: 04/10/2007
From: Dyer J
Office of Nuclear Reactor Regulation
To: Burke T, Cooper D, Fenech R, Hutchinson C
Consumers Energy, Entergy Nuclear Operations, Entergy Nuclear Palisades, Nuclear Management Co
Chawla M, NRR/DORL, 415-8371
References
TAC MD2954
Download: ML071000063 (7)


Text

Official Use Only - Proprietary Information April 10, 2007 Mr. C. Randy Hutchinson Mr. Robert A. Fenech, Senior Vice President Senior Vice President-Development Nuclear, Fossil, and Hydro Operations Entergy Nuclear Operations, Inc.

Consumers Energy Company 1340 Echelon Parkway 1945 Parnall Rd.

Jackson, MS 39213 Jackson, MI 49201 Mr. Terence A. Burke Mr. Douglas E. Cooper Vice President and Secretary Chief Nuclear Officer Entergy Nuclear Palisades, LLC Nuclear Management Company, LLC 27780 Blue Star Memorial Highway 700 First Street Covert, MI 49043 Hudson, WI 54016

SUBJECT:

REVISION TO ORDER APPROVING TRANSFER OF LICENSE AND SUPPORTING SAFETY EVALUATION REGARDING PALISADES NUCLEAR PLANT (TAC NO. MD2954)

Dear Sirs:

On April 6, 2007, the U.S. Nuclear Regulatory Commission (NRC) issued an Order approving the transfer of Renewed Facility Operating License No. DPR-20 for Palisades Nuclear Plant, held by Consumers Energy Company, as owner, and Nuclear Management Company, LLC (NMC), as operator, to Entergy Nuclear Palisades, LLC (ENP), as owner, and Entergy Nuclear Operations, Inc. (ENO), as operator. The NRC staffs findings in this Order were supported by its safety evaluation (SE) dated April 6, 2007.

The NRC has determined that clarifications are necessary to the Order and SE. A typographical error was noted on page 1 of the Order. The word from has been changed to the word for to make a statement more accurate. Page 1 of the SE is revised to reflect that the transfer of the license will also result in the transfer of the independent spent fuel storage installation (ISFSI) at Palisades to ENP. Thus, transfer of the license will result in ENP having authorization, pursuant to its general license under Section 72.210 of Title 10 of the Code of Federal Regulations, to store spent fuel in the ISFSI (Docket No. 72-7). The revised pages Official Use Only - Proprietary Information NOTICE: Enclosure 2 contains Proprietary Information. Upon separation from Enclosure 2, this letter and Enclosure 1 are DECONTROLLED.

Official Use Only - Proprietary Information C. Hutchison, et al. are enclosed. The enclosure list in the April 6, 2007, letter should have indicated that the proprietary version of the SE was only sent to ENO and ENP.

We regret any inconvenience that this matter might have caused.

Sincerely,

/RA/

J. E. Dyer, Director Office of Nuclear Reactor Regulation Docket Nos. 50-255, 72-7

Enclosures:

1. Page 1 of non-proprietary SE
2. Page 1 of proprietary SE (ENP and ENO only)
3. Page 1 of Order cc w/o Enclosure 2: See next page Official Use Only - Proprietary Information

ML071000063 OFFICE LPL3-1/PM LPL3-1/LA OGC LPL3-1/ABC NMSS/SFST

/DD DORL/DD NRR/D NAME MChawla THarris DRoth PMilano WRuland TMcGinty JDyer DATE 04/09/07 04/10 /07 04/10/07 04/10/07 04/10/07 04/10/07 04/10/07

SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATED TO DIRECT TRANSFER OF RENEWED OPERATING LICENSE TO ENTERGY NUCLEAR PALISADES, LLC AND ENTERGY NUCLEAR OPERATIONS, INC.

PALISADES NUCLEAR PLANT DOCKET NOS. 50-255 AND 72-7

1.0 INTRODUCTION

By application dated August 31, 2006, as supplemented by letters dated December 15, 2006, and March 1 and April 4, 2007 (hereinafter, the August 31, 2006, application and the December 15, 2006, and March 1 and April 4, 2007, supplements will be referred to collectively as the application), Consumers Energy Company (Consumers), Nuclear Management Company, LLC (NMC), Entergy Nuclear Palisades, LLC (ENP), and Entergy Nuclear Operations, Inc. (ENO), requested approval by the Nuclear Regulatory Commission (NRC),

pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations (CFR), to the direct transfer of Renewed Facility Operating License No. DPR-20 for Palisades Nuclear Plant (Palisades) from Consumers, owner, and NMC, operator, to ENP as owner, and ENO as operator. The proposed direct transfer will be the result of the sale of Palisades as indicated by the execution of the Asset Sales Agreement (ASA) signed by Consumers and ENP on July 11, 2006. Upon closing of the sale, ownership, control and operation of Palisades would change from Consumers and NMC to ENP and ENO. Transfer of the license will also result in ENP being authorized pursuant to the general license in 10 CFR 72.210 to store spent fuel in the Independent Spent Fuel Storage Installation at Palisades (Docket No. 72-7). Closing of the sale cannot occur until all regulatory approvals are received.

The July 11, 2006 ASA also concerns the sale of the license for Big Rock Point Facility (Docket No. 50-155) and Big Rock Point Independent Spent Fuel Storage Installation (ISFSI) (Docket No.72-043), from Consumers to ENP and ENO. An application for approval of that direct transfer was filed on October 31, 2006. While the license transfer of Big Rock Point Facility/Big Rock Point ISFSI are being executed by a separate Order, certain analyses in this safety evaluation (SE) took into account the transfer of all of the licenses: Palisades, Big Rock Point Facility/Big Rock Point ISFSI.

The application also requested a conforming amendment to reflect the transfer of ownership and operating authority for Palisades to ENP and ENO. References to Consumers and NMC would be deleted from the license, other than reference to past ownership. The supplemental information to the application did not expand the scope of the application as originally notified in the Federal Register.

NOTE:

OMITTED TEXT INDICATED BY BRACKETS ON PAGE 4 IS PROPRIETARY INFORMATION.

7590-01-P UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of

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CONSUMERS ENERGY COMPANY

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Docket No. 50-255

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Renewed License No. DPR-20 NUCLEAR MANAGEMENT COMPANY

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(Palisades Nuclear Plant)

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ORDER APPROVING TRANSFER OF LICENSE AND CONFORMING AMENDMENT I.

Consumers Energy Company (Consumers) and Nuclear Management Company, LLC (NMC) are holders of Renewed Facility Operating License No. DPR-20, which authorizes the possession, use, and operation of Palisades Nuclear Plant (Palisades). Consumers is authorized to possess and use, and NMC is authorized to possess, use, and operate Palisades.

The facility is located at the licensees site in Van Buren County, Michigan.

II.

By letter dated August 31, 2006, Consumers, NMC, Entergy Nuclear Palisades, LLC (ENP), and Entergy Nuclear Operations, Inc. (ENO) (collectively, the applicants) submitted an application to the U.S. Nuclear Regulatory Commission (NRC or Commission) requesting approval of the direct transfer of Renewed Facility Operating License No. DPR-20 for Palisades to ENP. The application is in connection with the sale of Consumers ownership interest (100 percent) in Palisades to ENP, and the related transfer of operating authority for the facility from NMC to ENO.

Supplemental information was provided by letters dated December 15, 2006, and

Palisades Nuclear Plant cc: (w/o Enclosure 2)

Robert A. Fenech, Senior Vice President Nuclear, Fossil, and Hydro Operations Consumers Energy Company 1945 Parnall Rd.

Jackson, MI 49201 Mr. Douglas E. Cooper Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016 Mr. C. Randy Hutchinson Senior Vice President-Development Entergy Nuclear Operations, Inc.

1340 Echelon Parkway Jackson, MS 39213 Mr. Terence A. Burke Vice President and Secretary Entergy Nuclear Palisades, LLC 27780 Blue Star Memorial Highway Covert, MI 49043 Arunas T. Udrys, Esquire Consumers Energy Company 1 Energy Plaza Jackson, MI 49201 Regional Administrator, Region III U.S. Nuclear Regulatory Commission Suite 210 2443 Warrenville Road Lisle, IL 60532-4351 Supervisor Covert Township P. O. Box 35 Covert, MI 49043 Office of the Governor P. O. Box 30013 Lansing, MI 48909 U.S. Nuclear Regulatory Commission Resident Inspector's Office Palisades Plant 27782 Blue Star Memorial Highway Covert, MI 49043 Michigan Department of Environmental Quality Waste and Hazardous Materials Division Hazardous Waste and Radiological Protection Section Nuclear Facilities Unit Constitution Hall, Lower-Level North 525 West Allegan Street P.O. Box 30241 Lansing, MI 48909-7741 Michigan Department of Attorney General Special Litigation Division 525 West Ottawa St.

Sixth Floor, G. Mennen Williams Building Lansing, MI 48913 Michael B. Sellman President and Chief Executive Officer Nuclear Management Company, LLC 700 First Street Hudson, MI 54016 Jonathan Rogoff, Esquire Vice President, Counsel & Secretary Nuclear Management Company, LLC 700 First Street Hudson, WI 54016 Douglas E. Cooper Senior Vice President and Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016

Palisades Nuclear Plant cc: (w/o Enclosure 2)

Stephen T. Wawro, Director of Nuclear Assets Consumers Energy Company Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Laurie A. Lahti, Manager Regulatory Affairs Nuclear Management Company, LLC Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Paul A. Harden Site Vice President Palisades Nuclear Plant Nuclear Management Company, LLC 27780 Blue Star Memorial Highway Covert, MI 49043