ML072530364

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R. Fenech Letter Transmitting Revised Order and Safety Evaluation Supporting the License Transfer for Big Rock Point
ML072530364
Person / Time
Site: Big Rock Point  File:Consumers Energy icon.png
Issue date: 12/10/2007
From: Chris Miller
NRC/FSME
To: Fenech R
Consumers Energy
Rodriguez R, NRR/DE/EMCB, 415-0193
References
TAC J60565
Download: ML072530364 (15)


Text

December 10, 2007 Mr. Robert A. Fenech, Senior Vice President Nuclear, Fossil, and Hydro Operations Consumers Energy Company 1945 Parnall Rd.

Jackson, MI 49201

SUBJECT:

TRANSMITTAL OF REVISED PAGES FOR ORDER APPROVING TRANSFER OF LICENSE AND SUPPORTING SAFETY EVALUATION REGARDING THE BIG ROCK POINT INDEPENDENT SPENT FUEL INSTALLATION (TAC NO. J60565)

Dear Mr. Fenech:

On April 6, 2007, the U.S. Nuclear Regulatory Commission (NRC) issued an Order approving the transfer of Facility Operating License No. DPR-06 for the Big Rock Point site and SFGL-16, the general license for the Big Rock Point Independent Spent Fuel Installation (ISFSI), held by Consumers Energy Company, as owner and 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. Errors were noted on pages 1, 2, and 4 of the Order. The license number for the general license has been added to the caption on page 1. Also on page 1, Part has been changed to Section, operate has been changed to store spent fuel at, and from has been changed to subject to. On page 2, and general ISFSI license has been added between operating license and and, 50.90 has been added between 50.80 and and 72.50. On page 4, the name Entergy has been changed to ENP and ENO, and it has is changed to they have. Pages 5 and 6 of the SE are revised to include additional discussion of the financial qualifications of ENO to operate the Big Rock Point ISFSI. The pagination of the SE also changed from pages 6 to 11. In addition, page 8 has been changed to reflect the change in the Order. The revised pages of the Order and SE 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.

R. Fenech 2 We regret any inconvenience that this matter might have caused. If you have any further questions, please contact James Shepherd at (301) 415-6712 or by e-mail at JCS2@nrc.gov, or Rafael Rodriguez at (301) 415-0193 or by e-mail at RLR1@nrc.gov.

Sincerely,

/RA/

Charles L. Miller, Director Office of Federal and State Programs and Environmental Management Programs Docket Nos.: 50-155 72-043

Enclosures:

1. Revised Pages of Order Approving the Transfer of License
2. Revised Pages of Non-Proprietary Safety Evaluation
3. Revised Pages of Proprietary Safety Evaluation (ENP and ENO only)

R. Fenech 2 We regret any inconvenience that this matter might have caused. If you have any further questions, please contact James Shepherd at (301) 415-6712 or by e-mail at JCS2@nrc.gov, or Rafael Rodriguez at (301) 415-0193 or by e-mail at RLR1@nrc.gov.

Sincerely,

/RA/

Charles L. Miller, Director Office of Federal and State Programs and Environmental Management Programs Docket Nos.: 50-155 72-043

Enclosures:

1. Revised Pages of Order Approving the Transfer of License
2. Revised Pages of Non-Proprietary Safety Evaluation
3. Revised Pages of Proprietary Safety Evaluation (ENP and ENO only)

DISTRIBUTION:

RidsRgn3MailCenter RidsOpaMailCenter RidsOgcMailCenter RidsFsmeOd MDusaniwskyj FSME r/f Identical letter sent to: Arunas T. Udrys, Sam Behrends, and Douglas E. Levanway ML072530326 OFFICE DWMEP/FSME DWMEP/FSME SFST/NMSS DWMEP/FSME DWMEP/FSME NAME RRodriguez JShepherd JRHall BWatson for KMcConnell APersinko DATE 09/14/07 09/20/07 09/25/07 09/20 /07 10/26 /07 OFFICE DWMEP/FSME OGC FSME FSME NAME LCamper SUttal CPoland CMiller DATE 11/1/07 11/7/07 11/21/07 12/10/07 OFFICIAL RECORD COPY

cc: (without Enclosures)

Mr. Douglas E. Cooper U.S. Nuclear Regulatory Commission Chief Nuclear Officer Resident Inspector's Office Nuclear Management Company, LLC Palisades Plant 700 First Street 27782 Blue Star Memorial Highway Hudson, WI 54016 Covert, MI 49043 Mr. C. Randy Hutchinson Michigan Department of Environmental Quality Senior Vice President-Development Waste and Hazardous Materials Division Entergy Nuclear Operations, Inc. Hazardous Waste and Radiological 1340 Echelon Parkway Protection Section Jackson, MS 39213 Nuclear Facilities Unit Constitution Hall, Lower-Level North Mr. Terence A. Burke 525 West Allegan Street Vice President and Secretary P.O. Box 30241 Entergy Nuclear Palisades, LLC Lansing, MI 48909-7741 27780 Blue Star Memorial Highway Covert, MI 49043 Michigan Department of Attorney General Special Litigation Division Regional Administrator, Region III 525 West Ottawa St.

U.S. Nuclear Regulatory Commission Sixth Floor, G. Mennen Williams Building Suite 210 Lansing, MI 48913 2443 Warrenville Road Lisle, IL 60532-4351 Michael B. Sellman President and Chief Executive Officer Supervisor Nuclear Management Company, LLC Covert Township 700 First Street P. O. Box 35 Hudson, MI 54016 Covert, MI 49043 Jonathan Rogoff, Esquire Office of the Governor Vice President, Counsel & Secretary P. O. Box 30013 Nuclear Management Company, LLC Lansing, MI 48909 700 First Street Hudson, WI 54016 Laurie A. Lahti, Manager Regulatory Affairs Douglas E. Cooper Nuclear Management Company, LLC Senior Vice President and Palisades Nuclear Plant Chief Nuclear Officer 27780 Blue Star Memorial Highway Nuclear Management Company, LLC Covert, MI 49043 700 First Street Hudson, WI 54016 Paul A. Harden Site Vice President Stephen T. Wawro, Director Palisades Nuclear Plant of Nuclear Assets Nuclear Management Company, LLC Consumers Energy Company 27780 Blue Star Memorial Highway Palisades Nuclear Plant Covert, MI 49043 27780 Blue Star Memorial Highway Covert, MI 49043

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of: )

)

CONSUMERS ENERGY COMPANY )

)

(Big Rock Point Facility) ) Docket Nos.: 50-155

)72-043

)

) License Nos. DPR-06 SFGL-16 ORDER APPROVING TRANSFER OF LICENSE AND CONFORMING AMENDMENT I.

Consumers Energy Company (Consumers) is the holder of Facility Operating License No. DPR-06, which authorizes the possession and use of the Big Rock Point site (Big Rock),

and an onsite Independent Spent Fuel Storage Installation (ISFSI) under a general license, SFGL-16, granted pursuant to Title 10 of the Code of Federal Regulations (CFR), Section 72.210. Consumers is licensed by the U.S. Nuclear Regulatory Commission (NRC, the Commission) to store spent fuel at the Big Rock ISFSI. The facility is located at the licensees site in Charlevoix, Michigan. In 2006, Consumers completed decommissioning and decontamination of the majority of the land on the site. On April 3, 2006, Consumers informed the Commission of its intent to release approximately 475 acres of land subject to the operating license, in accordance with the Big Rock license termination plan. Consumers submitted its final status survey report on November 2006, and NRC approved the release of the land in a letter to the licensee dated January 8, 2007. The only asset remaining subject to the license is a parcel of land of Enclosure 1

2 approximately 30 acres within which the ISFSI itself resides, and an additional parcel of approximately 75 acres adjacent to the ISFSI.

II.

By letter dated October 31, 2006, Consumers, Entergy Nuclear Palisades, LLC (ENP),

and Entergy Nuclear Operations, Inc. (ENO) (collectively, the applicants) submitted an application requesting approval of the direct transfer of Consumers interest in Big Rock Facility Operating License DPR-06 and general ISFSI License No. SFGL-16 to ENP to possess and own, and ENO, to control and operate, the Big Rock ISFSI and certain additional lands.

Consumers, ENP, and ENO also requested approval of a conforming license amendment that would replace references to Consumers in the license with references to ENP and ENO to reflect the direct transfer of ownership, and revise paragraph 1.A in the license to be consistent with paragraph 2 regarding the disposition of the Facility Operating License. No physical changes to the facilities or operational changes were proposed in the application. After completion of the proposed transfer, ENP and ENO would be the owner and operator, respectively, of Big Rock and the ISFSI.

Approval of the transfer of the facility operating license, general ISFSI license, and conforming license amendment is requested pursuant to 10 CFR 50.80, 50.90, and 72.50.

Notice of the request for approval and opportunity for a hearing were published in the Federal Register on January 30, 2007 (72 FR 4302-4303). A petition for leave to intervene pursuant to 10 CFR 2.309 was received from Nuclear Information and Resource Service, Do Not Waste Michigan, and Mr. Victor McManemy. The petition is under consideration by the Commission.

Pursuant to 10 CFR 50.80, no license, or any right thereunder, shall be transferred, directly or indirectly, through transfer of control of the license, unless the Commission shall give its consent in writing. Pursuant to 10 CFR 72.50, no license or any part included in a license

4 Accordingly, pursuant to Sections 161b, 161i, and 184 of the Act; 42 U.S.C. §§ 2201 (b),

2201 (i), and 2234; 10 CFR 50.80 and 10 CFR 72.50, IT IS HEREBY ORDERED that the direct transfer of the license, as described herein, to ENP and ENO is approved, subject to the following condition:

Prior to completion of the transfer of the license, ENP and ENO shall provide the Directors of the Office of Nuclear Reactor Regulation and the Office of Federal and State Materials and Environmental Management Programs satisfactory documentary evidence that they have obtained the appropriate amount of insurance required of licensees under 10 CFR Part 140 of the Commissions regulations.

IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), a license amendment that makes changes, as indicated in Enclosure 2 to the cover letter forwarding this Order to conform the license to reflect the subject direct license transfer, is approved. The amendment shall be issued and made effective at the time the proposed direct license transfer is completed.

IT IS FURTHER ORDERED that ENP and ENO shall inform the Directors of the Office of Nuclear Reactor Regulation and the Office of Federal and State Materials and Environmental Management Programs in writing of the date of closing of the transfer of the Consumers interest in Big Rock to ENP and ENO, at least 1 business day prior to closing. Should the transfer of the license not be completed within one year of this Orders date of issuance, this Order shall become null and void, provided; however, that upon written application and for good cause shown, such date may be extended by order.

This Order is effective upon issuance.

Enclosure 2 -

Revised Pages of Non-Proprietary Safety Evaluation

5 ENP will own and ENO will operate, both Big Rock and Palisades. As an operating nuclear facility, Palisades will produce revenue through power sales pursuant to its 15-year Power Purchase Agreement (PPA) with Consumers, in which Consumers commits to purchasing all of the output of Palisades. A copy of the PPA was submitted as part of this application for Big Rock and the Big Rock ISFSI.

ENP is a newly formed entity, and either through a parent or affiliate company will provide the funds to purchase Palisades. Entergy, the parent company, has unconditionally guaranteed the payment of the purchase price under the ASA. ENO was formed in February 2000, and employs approximately 3300 people. At the closing of the purchase, Palisades and the Big Rock ISFSI will be the only assets on ENPs balance sheet. Total Operating Expense, listed above, also contains an average annual expense of approximately $ xxxxx towards maintaining the Big Rock ISFSI.

As required by 10 CFR 50.33(f)(3), the application states that ENP and ENO are indirect, wholly-owned subsidiaries of Entergy, which is headquartered in New Orleans, Louisiana.

Entergy is a U.S-based global energy company composed of power production facilities, distribution operations and related diversified services. The NRC staff notes that Entergy owns, manages or invests in power plants that generate nearly 30,000 megawatts of electricity.

Through its various subsidiaries (both regulated and unregulated), Entergy owns and operates 10 nuclear power plants at 8 sites. These are:

Arkansas Nuclear One, Units 1 and 2 Grand Gulf Nuclear Station River Bend Station Waterford 3 Nuclear Power Station Pilgrim Nuclear Power Station Indian Point Energy Center Generating Units 2 and 3 James. A. FitzPatrick Nuclear Power Station Vermont Yankee The NRC staff notes that ENO also provides management support to the Cooper Nuclear Station. As of June 30, 2006, Entergy had total assets of $30.6 billion.

The revenues in the five year projected income statement for Palisades are based on ENPs sale of its generation, at prices established under the PPA. The costs associated with the operation and maintenance of Big Rock and the Big Rock ISFSI are included in the five year projected income statement for Palisades. The projected income statement shows that ENPs anticipated revenues from sales of energy and capacity from Palisades provide reasonable assurance of an adequate source of funds to meet ENPs anticipated operating and maintenance expenses for the Big Rock ISFSI. The NRC staff notes that ENP and ENO, through Entergy Corporation, will have access to a line of credit of $ xxxxx from Entergy Corporation or another affiliated company.

Pursuant to the license transfer applications, an Operating Agreement was entered into on March 29, 2007, between ENO and ENP. Under the Operating Agreement, ENP delegated to ENO certain operating responsibilities for the Big Rock ISFSI (Big Rock), consistent with ENPs obligations and responsibilities. Among the obligations and responsibilities, ENO and ENP agree that ENO shall act as the agent of ENP to take all actions necessary to make capital Revised By letter dated December 10, 2007

6 improvements and to operate Big Rock. ENP grants ENO the authority to take on all such action, on ENPs behalf, necessary to obtain and maintain all licenses and permits issued by the NRC relating to Big Rock and necessary to comply with all applicable regulations of the NRC and other governmental bodies having jurisdiction over any aspects of the cost of operation, cost of capital improvements, making of capital improvements and operation of Big Rock.

According to the Operating Agreement, all costs incurred by ENO relating to decommissioning of Palisades and Big Rock ISFSI shall be considered costs of operation or costs of capital improvements. In addition, ENP agrees to be bound by the terms of all contracts executed by ENO in accordance with its agency authority without limitations, to the same extent as if ENP were an original signatory to such contracts.

As stated in the Operating Agreement, in consideration of the services rendered by ENO, ENP agrees to pay all the costs of operation and all the costs of capital improvements. ENP at all times shall be the owner of Big Rock. All of ENOs operating revenues are directly and wholly derived by payments from ENP, and that ENPs payments shall pay for all the costs of operation and all the costs of capital improvements towards the Big Rock ISFSI.

The Operating Agreement becomes effective with the closing of the sale and completion of the direct transfer of the licenses. The Operating Agreement will remain in effect until both Palisades and the Big Rock ISFSI have been retired and decommissioned in accordance with all applicable regulatory and governmental requirements.

Based in the information in the application for the transfer, other documents cited above, and the staffs evaluation, the staff finds that ENPs Projected Income Statement shows that the anticipated revenues from sales of energy and capacity from Palisades provides reasonable assurance of an adequate source of funds to meet Palisades anticipated expenses during the six year period covered by the projections, including the expenses associated with Big Rock Point and the Big Rock ISFSI. The staff also finds that ENO is financially qualified to be the operator of Big Rock ISFSI, to the extent proposed in the Operating Agreement. The NRC staff finds that no further financial qualifications analysis or review is necessary.

Thus the NRC staff has determined that ENP and ENO have provided information sufficient to demonstrate that ENO and ENP possess or have assurance of obtaining the funds necessary to cover estimated operation costs for the period of the license, pursuant to 10 CFR 50.33 (f)(2) and 72.22(e).

4.1 Decommissioning Cost Estimate and Funding Assurance The NRC has determined that the requirement to provide decommissioning funding assurance is necessary to ensure the adequate protection of public health and safety.

a) Big Rock As mentioned in Section 2.0 of this SER, NRC approved the release of the land in a letter to the licensee dated January 8, 2007 (ADAMS # ML063410361). Any and all additional decommissioning expenses associated with this site shall be born by ENP, through revenues derived from, but not limited to, the sale of electricity and capacity from Palisades.

Revised By letter dated December 10, 2007

7 b) Big Rock ISFSI The cost of decommissioning the Big Rock ISFSI is estimated at $2.8 million. (Big Rock Point, Proposed License Amendment-License Termination Plan, Revision 2, Section 7-2-2).

According to the application, it is anticipated that revenues from the sale of electricity from Palisades will be sufficient to fund the cost of decommissioning the Big Rock ISFSI. However, the application states that ENP will ensure adequate decommissioning funding for this portion of the land and facilities to be transferred, through a parent company guarantee that meets the requirements of 10 CFR 50.75(e)(1)(iii) or 10 CFR 72.30(c), as applicable. ENP submitted a draft of the Parent Company Guarantee, and fulfilled the requirements of 10 CFR Appendix A to Part 30 Criteria Relating to Use of Financial Tests and Parent Company Guarantees for Providing Reasonable Assurance of Funds for Decommissioning. Staff finds that the parent company of ENP, Entergy Corporation, has satisfactorily fulfilled the financial test of 10 CFR Appendix A of Part 30(A)(2).

Upon closing of the proposed sale, ENP will assume title to, and financial responsibility for the spent fuel stored at the Big Rock ISFSI to the same extent as presently held by Consumers.

The proposed transaction will result in ENP and ENO being authorized pursuant to 10 CFR Parts 50 and 72 to store spent fuel at the Big Rock ISFSI.

As stated in the application, pursuant to the ASA, Consumers will assign or convey, and ENP will assume, Consumers rights and obligations under the Standard Contract with the Department of Energy (DOE) and all other rights of Consumers against DOE with respect to, arising out of, or in connection with the assets to be transferred, excluding any claims of Consumers related to or pertaining to DOE defaults under the Standard Contract relating to periods prior to the closing date, and with respect to the payment from Consumers to ENP contemplated by the ASA. Consumers will retain all liabilities and rights applicable to the Pre-1983 Fee paid to the DOE under the Standard Contract.

Based on the above evaluation, the NRC staff concludes that ENP has provided reasonable assurance that funds will be available for decommissioning pursuant to 10 CFR 50.75 and 72.30.

4.2 Antitrust Review The Atomic Energy Act (AEA) of 1954, as amended, does not require or authorize antitrust reviews of post-operating license transfer applications. Kansas Gas and Electric Co., et al.

(Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 NRC 441 (1999). The application here postdates the issuance of the operating license for units under consideration, and therefore no antitrust review is required or authorized. The NRC staff notes that there are no existing antitrust license conditions in the subject license. Accordingly, there are no antitrust-related issues to resolve with respect to proposed conforming license amendment.

4.3 Foreign Ownership, Control, or Domination Sections 103d and 104d of the AEA prohibit the NRC from issuing a license for a nuclear power plant to any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government.

The NRCs regulation, 10 CFR 50.38, contains language to implement this prohibition.

Revised By letter dated December 10, 2007

8 As stated in the application, ENP and ENO are not directly or indirectly owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. In seeking to become the licensed owner and operator of Palisades, ENP and ENO are not acting as agents or representatives of another entity.

All of the directors of Entergy, ENO, and ENP are United States citizens, and are expected to remain so after the proposed sale. The appointed officers of the Entergy, ENO, and ENP are expected to be limited to the current pool of officers and directors of the purchasing companies, all of whom are United States citizens.

In light of the above, the NRC staff does not know or have reason to believe that Entergy, ENO, and ENP will be owned, controlled or dominated by an alien, a foreign corporation, or a foreign government.

4.4 Nuclear Insurance and Indemnity The provisions of the Price-Anderson Act (Section 170 of the AEA) and the Commissions regulations at 10 CFR Part 140 require that the current indemnity agreement be modified to reflect ENP and ENO as the new licensees of Big Rock.

In accordance with the Price-Anderson Act, ENP and ENO will be required to provide primary insurance. They will also be required to maintain property insurance as specified in 10 CFR 50.54(w). Information provided in the application demonstrates that ENP and ENO will be able to satisfy applicable insurance requirements of the NRC and the Price-Anderson Act.

Consistent with NRC practice, the NRC staff will require ENP and ENO to provide satisfactory documentary evidence that it has obtained the appropriate amount of insurance required of a licensee under 10 CFR Part 140 of the Commissions regulations, prior to the issuance of the amended license. Because the issuance of the amended license is directly tied to completion of the proposed direct license transfer, the order approving the transfer will be conditioned as follows:

Prior to completion of the transfer of the license, ENP and ENO shall provide the Directors of the Office of Nuclear Reactor Regulation and the Office of Federal and State Materials and Environmental Management Programs satisfactory documentary evidence that they have obtained the appropriate amount of insurance required of a licensee under 10 CFR Part 140 of the Commissions regulations.

4.5 Interveners During the preparation of this SER, staff became aware of a petition requesting leave to intervene. The petitioners are Nuclear Information and Resource Service, Do Not Waste Michigan, and Mr. Victor McManemy. The staff has made a review of these petitions as they relate to the financial qualifications of ENP and ENO, as well as any adverse environmental impacts the proposed action may have. The NRC staff has found no information that would cause it to change the conclusions contained herein.

Revised By letter dated December 10, 2007

9 5.0 TECHNICAL QUALIFICATIONS The purpose of this technical evaluation is to ensure that the proposed corporate management is involved with, informed of, and dedicated to the safe operation of the Big Rock ISFSI. In addition, the review is to ensure that sufficient technical resources have been, are being, and will continue to be provided to adequately accomplish these objectives.

5.1 Management and Technical Support Organization The NRC staff reviewed the application to determine the acceptability of the proposed corporate management and technical support organization. The NRC staff evaluated the application using, in part, the guidance provided in NUREG-0800, Section 13.1.1, Management and Technical Support Organization. In addition, the NRC staff evaluated the application against licensing documents previously approved for the Big Rock facility, for any changes that could result in an adverse impact to public health and safety, or the environment.

The applicants state that: Entergy Palisades will be fully qualified to own and, through ENO, to operate the remaining relevant portions of Big Rock, and contemplates no significant changes in the qualifications of personnel at the facility. In addition, the applicants state that: Any new management employees placed at Big Rock will meet all applicable technical qualifications required by existing Big Rock licensing documents. The NRC staff notes that the October 31, 2006, application does not request any changes to the training requirements previously approved in the emergency plan or the security plan for the Big Rock ISFSI. Thus, no changes to the technical qualifications of the operating organization are expected as a result of the license transfer.

5.2 Operating Organization The NRC staff reviewed the application to determine the acceptability of the ENO operating organization, and to evaluate changes to the operating organization proposed as a result of the license transfer. The initial operating organization for the Big Rock facility was determined to be acceptable by the initial licensing review. It was documented in the Hazards Analysis by the Research and Power Reactor Safety Branch, Division of Licensing and Regulation, in the matter of Consumers Power Company of Michigan, Big Rock Point Nuclear Plant dated June 20, 1962 (accessible through the Public Document Room using accession number 8101100667).

Subsequent safety-related changes to the BRP operating organization were evaluated by the NRC with an appropriate methodology. Because all fuel was transferred to the ISFSI in 2003 and will not be removed until DOE accepts it, there are no activities at the ISFSI. The BRP ISFSI staff are qualified to the criteria in Section 6.3 of the Defueled Technical Specifications, and the criteria in the ISFSI Emergency Plan (EP). Security and Operations personnel are qualified to provide the initial response to emergencies at BRP. Qualification of all personnel is described in Section 12 of the EP. The NRC staff notes that the application does not request any safety-related changes to the operating organization, or any changes to the emergency organization.

The Big Rock ISFSI nuclear organization at the site will report directly to the Vice-President of Operations at Palisades, who will report to the Senior Vice-President and Chief Operating Officer. The NRC staff notes that the application does not involve any changes to the Big Rock Revised By letter dated December 10, 2007

10 ISFSI nuclear organization. Any ENO officers responsible for the safe operation of the Big Rock ISFSI will continue its operation in accordance with licensing documents previously approved when the facility was owned and operated by Consumers. Any changes necessary to reflect the transfer of the license will be administrative in nature, and will not pose an adverse impact to public health and safety, or the environment.

5.3 Other Considerations The NRC staff also reviewed the applicants information to determine if the proposed license transfer and changes to Facility Operating License No. DPR-06, as well as the Big Rock Defueled Technical Specifications, could result in a reduction of previously accepted commitments made in the Quality Program Description for Big Rock Point. The NRC staff concludes that the approval of the proposed license transfer and changes to Facility Operating License No. DPR-06, as well as the Big Rock Defueled Technical Specifications, do not result in a reduction of such commitments.

5.4 Technical Conclusions The NRC staff concludes that the application for the proposed license transfer includes the required information with respect to the identity and the technical qualifications of the proposed transferee. The applicant also included a statement of the purpose for which the transfer of the license is requested, and the nature of the transaction necessitating or making desirable the transfer of the license.

6.0 CONFORMING AMENDMENT 6.1 Introduction As previously stated, Consumers, ENP, and ENO requested approval of a proposed conforming amendment to Facility Operating License No. DPR-06 and the Big Rock Point ISFSI general license granted under 10 CFR 72.210. No physical or operating changes to the Big Rock ISFSI, or its adjacent lands, are requested.

6.2 Discussion The changes to be made to the license are indicated in the conforming amendment in Enclosure 2 to the cover letter forwarding the NRC staffs order regarding the subject transfer. The changes do accurately reflect the approved transfer action. The amendment involves no safety questions and are administrative in nature. Accordingly, the proposed amendments are acceptable.

6.3 State Consultation On March 14, 2007, the NRC staff contacted the representative from the State of Michigans Department of Environmental Quality, and the representative from the State Historic Preservation Office, to inform them about the licensees request, and the proposed issuance of the license amendment. The representatives of these State agencies did not have any comments.

Revised By letter dated December 10, 2007

11 6.4 Conclusion with Respect to the Conforming Amendment The Commission has concluded, based on the considerations discussed above, that: (1) there is reasonable assurance that the health and safety of the public will not be endangered by the proposed license transfer, (2) activities at the Big Rock ISFSI will be conducted in compliance with the Commissions regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security, or to the health and safety of the public.

7.0 ENVIRONMENTAL CONSIDERATION

S The subject application is for approval of a transfer of a license issued by the NRC and approval of conforming amendment. Accordingly, the actions involved meet the eligibility criteria for a categorical exclusion set forth in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(c)(21), no environmental assessment of environmental impact statement needs to be prepared in connection with the approval of the application.

8.0 CONCLUSION

S In view of the foregoing, the NRC staff finds that, subject to the conditions discussed herein, ENP and ENO are qualified to be the holder and operator of the Big Rock Facility and Big Rock ISFSI to the extent proposed in the application, and that the direct transfer of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto.

Principal Contributors: MADusaniwskyj, NRR/DPR/PFPB RLRodriguez, FSME/DWMEP/DURLD Date: April 6, 2007 Revised By letter dated December 10, 2007