ML080940528
| ML080940528 | |
| Person / Time | |
|---|---|
| Site: | Big Rock Point File:Consumers Energy icon.png |
| Issue date: | 07/28/2008 |
| From: | Hall J NRC/NMSS/SFST |
| To: | Kansler M Entergy Nuclear Operations |
| Pickett D, NRR/DORL, 415-1364 | |
| References | |
| FOIA/PA-2009-0026, TAC MD6178 | |
| Download: ML080940528 (6) | |
Text
OFFICIAL USE ONLY - PROPRIETARY INFORMATION OFFICIAL USE ONLY - PROPRIETARY INFORMATION July 28, 2008 Mr. Michael R. Kansler President & CEO/CNO Entergy Nuclear Operations, Inc.
1340 Echelon Parkway Jackson, MS 39213
SUBJECT:
BIG ROCK POINT - ORDER APPROVING INDIRECT TRANSFER OF FACILITY OPERATING LICENSE (TAC NO. MD6178)
Dear Mr. Kansler:
By application dated July 30, 2007, as supplemented by letters dated October 31, and December 5, 2007, and January 24, March 17, April 22, and May 2, 2008, Entergy Nuclear Operations, Inc. (ENO), acting on behalf of itself and Entergy Nuclear Palisades, LLC (EN-Palisades), requested that the U.S. Nuclear Regulatory Commission (NRC, the Commission),
pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations, consent to the proposed indirect transfer of control of the Facility Operating License, No. DPR-06, for Big Rock Point.
EN-Palisades, the owner of the Big Rock Point facility, is currently an indirect subsidiary of Entergy Corporation. Under a proposed corporate restructuring plan, a new holding company, Enexus Energy Corporation (Enexus), will be created and will be publicly owned. According to this plan, Enexus will acquire indirect ownership of 100 percent of EN-Palisades. In addition, ENO, the operator of the Big Rock Point facility, is currently an indirect subsidiary of Entergy Corporation. Following the corporate restructuring, Entergy Corporation and Enexus will each have indirect control of 50 percent of ENO.
ENO will be converted from a corporation to a limited liability company and its name will be changed to EquaGen Nuclear LLC. Also, EN-Palisades will undergo a name change to become Enexus Nuclear Palisades, LLC. The staff understands that ENO will request an administrative license amendment to conform the Big Rock Point license in the near future.
The enclosed Order (Enclosure 1) approves the proposed indirect transfer of control of the license held by EN-Palisades to Enexus. The Order also approves the indirect transfer of ENO to EquaGen LLC, a new intermediate holding company, held in equal shares by two new next tier intermediate holding companies, which are subsidiaries of Entergy Corporation and Enexus.
Enclosures 2 and 3 contain the non-proprietary and proprietary versions, respectively, of the NRC staffs safety evaluation (SE) related to the preceding actions. The non-proprietary version of the SE will be placed in the NRC Public Document Room and added to the Agencywide Document Access Management System Public Electronic Reading Room Library.
OFFICIAL USE ONLY - PROPRIETARY INFORMATION OFFICIAL USE ONLY - PROPRIETARY INFORMATION The Order is being forwarded to the Office of the Federal Register for publication. If you have any questions, please contact me at (301) 492-3319.
Sincerely,
/RA/
James R. Hall, Senior Project Manager Division of Spent Fuel Storage and Transportation Office of Nuclear Material Safety and Safeguards Docket Nos. 50-155 and 72-43
Enclosures:
- 1. Order
- 2. Safety Evaluation (Non-proprietary)
- 3. Safety Evaluation (Proprietary) cc w/encls. 1 and 2: See next page
ML080940564 (Package)
ML080940553 (Letter and Order)
ML081080352 (Enclosure 2)
ML081080515 (Enclosure 3)
OFFICE LPL1-1/PM LPL1-1/LA IOLB/BC PFPB/BC NAME DPickett SLittle NSalgado signed on ACosta (A) signed on DATE 6 / 27 / 08 4/ 28 / 08 4 / 24 / 08 4 / 11 / 08 OFFICE LPL1-1/BC OGC NMSS/PM NMSS/SFST/D NAME MKowal SUttal JHall EBrach DATE 5 / 1 / 08 7 / 01 / 08 7 / 03 / 08 7 / 03 / 08
cc: Big Rock Point ISFSI Docket Nos. 50-155, 72-43 Regional Administrator, Region III U.S. Nuclear Regulatory Commission Suite 210 2443 Warrenville Road Lisle, IL 60532-4351 The Honorable Jennifer Granholm Governor of the State of Michigan Executive Office, Second Floor George Romney Building Lansing, MI 48909 The Honorable Carl Levin U.S. Senate 269 Russell Senate Office Bldg.
Washington, DC 20515 The Honorable Debbie Stabenow U.S. Senate 133 Hart Senate Office Bldg.
Washington, DC 20515 The Honorable Bart Stupak U.S. House of Representatives 2352 Rayburn Building Washington, DC 20515 The Honorable Jason Allen Michigan Senate 820 Farnum Building P.O. Box 30014 Lansing, MI 48909 The Honorable Kevin Elsenheimer Michigan House of Representatives P.O. Box 30014 Lansing, MI 48909 The Honorable Garry McDowell Michigan House of Representatives P.O. Box 30014 Lansing, MI 48909 Chief, Nuclear Facilities Unit Michigan Department of Environmental Quality P.O. Box 30221 Lansing, MI 49201 Michigan Department of Attorney General Special Litigation Division 525 West Ottawa St 6th Floor, G. Mennen Williams Building Lansing, MI 48913 Senior Vice President Entergy Nuclear Operations, Inc.
P.O. Box 31995 Jackson, MS 39286-1995 Vice President Oversight, Entergy Nuclear Operations, Inc.
P.O. Box 31995 Jackson, MS 39286-1995 Mr. Christopher J. Schwarz Site Vice President Entergy Nuclear Operations, Inc.
Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Senior Manager, Nuclear Safety &
Licensing Entergy Nuclear Operations, Inc.
P.O. Box 31995 Jackson, MS 39286-1995 Senior Vice President and COO Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Assistant General Counsel Entergy Nuclear Operations, Inc.
440 Hamilton Avenue White Plains, NY 10601 Ms. Suzanne L. Leblang Manager, Dry Fuel Storage Entergy Nuclear Operations, Inc.
Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Mr. Larry Potter, ISFSI Supervisor Big Rock Point Restoration Site 10269 US-31 North Charlevoix, MI 49720 Mr. Frank B. Rives Director, Nuclear Fuels Entergy Nuclear Operations, Inc.
1340 Echelon Parkway Jackson, MS 39213 General Manager, Plant Operations Entergy Nuclear Operations, Inc.
Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Director, NSA Entergy Nuclear Operations, Inc.
Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043 Mr. William DiProfio 48 Bear Hill Road Newton, NH 03858 Mr. William T. Russell 400 Plantation Lane Stevensville, MD 21666 Mr. Garry Randolph 1750 Ben Feranklin Drive, 7E Sarasota FL 34236 Ahren Tryon Dewey and LeBouef, LLP 1101 New York Avenue, NW, Suite 1100 Washington, DC 20005 Douglas E. Levanway Wise Carter Child & Caraway, P.A.
P.O. Box 651 Jackson, MS 39205 Mr. John King Michigan Public Service Commission Advance Planning and Review Section 6545 Mercantile Way P.O. Box 30221 Lansing, MI 48909 Mr. George Lasater Sheriff, Charlevoix County 1000 Grant Street Charlevoix, MI 49720 Mr. Larry Sullivan Charlevoix County Planning Director 301 State Street Charlevoix, MI 49720 Mr. Gerard Doan Chief of Police City of Charlevoix 210 State Street Charlevoix, MI 49720 Mr. Norman (Boogie) Carlson Jr.
Mayor, City of Charlevoix 210 State Street Charlevoix, MI 49720 Mr. Paul Ivan Fire Chief, City of Charelvoix 210 State Street Charlevoix, MI 49720 Charlevoix City Manager 210 State St.
Charlevoix, MI 49720 Mr. Dale Glass Charlevoix Township Supervisor 12491 Waller Rd.
Charlevoix, MI 49720 Mr. Curt Thompson Charlevoix Township Fire Chief 12491 Waller Rd.
Charlevoix, MI 49720 Mr. George Korthauer Petoskey City Manager 100 West Lake St.
Petoskey, MI 49770 Mr. Jim Tamlyn, Chairman Emmet County Board of Commissioners 200 Division Street Petoskey, MI 49770 Al Behan Emmet County Board of Commissioners 1916 Berger Rd Petoskey, MI 49770 Ms. Ethel Knapp Hayes Township Supervisor 10448 Burnett Rd Charlevoix, MI 49720 Marlende C. Golovich Hayes Township Clerk 7250 Dalton Charlevoix, MI 49720 Mr. Doug Kuebler Hayes Township Trustee 10772 Burnett Rd.
Charlevoix, MI 49720 Mr. James Rudolph Hayes Township Trustee 09798 Townline Rd Petoskey, MI 49770 Ms. Robbin Kraft Hayes Township Treasurer 08346 Shrigley Rd.
Charlevoix, MI 49720 Frank E. Etawageshitz Little Traverse Band of Odawa Indians 7500 Odawa Circle Harbor Springs, MI 49740 Mr. Tom Bailey Executive Director Little Traverse Conservancy 3264 Powell Rd.
Harbor Springs, MI 49740 Mr. Rick Lobenherz Vacation Properties Network 203 Bridge Street Charlevoix, MI 49720 Ms. Jacqueline Merta Charlevoix Chamber of Commerce 109 Mason St.
Charlevoix, MI 49720 Suzanne Erhart Vice President, Comptroller Lexalite International 10163 US-31 N.
Charlevoix, MI 49720 Mr. Andy Hayes Executive Director Northern Lakes Economic Alliance 1048 East Main Street Boyne City, MI 49712-0008 Mr. David V. Johnson Chairman, Bay Harbor Company 4000 Main Street Bay Harbor, MI 49770 Mr. Kip Thomas Charlevoix Country Club 9600 Clubhouse Drive Charlevoix, MI 49720 Mr. Carlin Smith, Director Petoskey Regional Chamber of Commerce 401 E. Mitchell Street Petoskey, MI 49770 Mr. Carl Lord P.O. Box 38 Waters, MI 49797 Ms. Joanne Beemon 204 Clinton Charlevoix, MI 49720 Mr. John Haggard P.O. Box 35 Charlevoix, MI 49720 L. Shekter Smith, Chief Radiological Protection Section Michigan Department of Environmental Quality DWRPD P.O. Box 30630 Lansing, MI 48909-8130 Manager, Licensing Entergy Nuclear Operations Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043-9530 Vice President, Operations Entergy Nuclear Operations Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043-9530 Mr. Brian Conway Michigan SHPO 702 W. Kalamazoo Michigan Historical Center Lansing, MI 48949 Thor Strong Michigan Department of Environmental Quality P.O. Box 30241 Lansing, MI 48909-7741 Michigan State Police, Emergency Management Division 4000 Collins Road Lansing, MI 48910 Lt. Aaron Sweeny Petoskey Post, MSP 1200 M119 Petoskey, MI 49770 Ms. Shirley Roloff, Chair Charlevoix County Board of Commissioners 203 Antrim Street Charlevoix, MI 49720 Ms. Shirlene Tripp, Vice Chair Charlevoix County Board of Commissioners 203 Antrim Street Charlevoix, MI 49720 Mr. Ronald Reinhardt Charlevoix County Board of Commissioners 203 Antrim Street Charlevoix, MI 49720 Mr. Victor Patrick Charlevoix County Board of Commissioners 203 Antrim Street Charlevoix, MI 49720 Mr. Dennis Jason Charlevoix County Board of Commissioners 203 Antrim Street Charlevoix, MI 49720
7590-01-P UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
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ENTERGY NUCLEAR OPERATIONS, INC.
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ENTERGY NUCLEAR PALISADES, LLC
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(Big Rock Point)
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Docket Nos. 50-155 and 72-43
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ORDER APPROVING INDIRECT TRANSFER OF FACILITY OPERATING LICENSE I
Entergy Nuclear Operations, Inc. (ENO) and Entergy Nuclear Palisades, LLC (EN-Palisades) are co-holders of the Facility Operating License, No. DPR-06, which authorizes the possession, use, and operation of Big Rock Point. Big Rock Point is an independent spent fuel storage installation (ISFSI) that is owned by EN-Palisades and operated by ENO. The facility is located in Charlevoix County, Michigan.
II By application dated July 30, 2007, as supplemented by letters dated October 31, and December 5, 2007, and January 24, March 17, April 22, and May 2, 2008, ENO, acting on behalf of itself and EN-Palisades, requested that the U.S. Nuclear Regulatory Commission (NRC, the Commission), pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations (10 CFR), consent to the proposed indirect transfer of control of the Big Rock Point license, including the general license for the ISFSI.
EN-Palisades is currently a direct wholly owned subsidiary of Entergy Nuclear Midwest Investment Company, LLC which, in turn, is a direct wholly owned subsidiary of Entergy Nuclear Holding Company which, in turn, is a direct wholly owned subsidiary of Entergy Corporation.
Therefore, under the current corporate structure, Entergy Corporation is the indirect owner of 100 percent of EN-Palisades.
Under the proposed corporate restructuring, a new holding company, Enexus Energy Corporation (Enexus), will be created. Initially, the shareholders of Entergy Corporation will separately own the shares of Enexus and, as such, Enexus will be owned by the public.
Entergy Nuclear Holding Company will become a direct wholly owned subsidiary of Enexus.
Accordingly, following the corporate restructuring, Enexus will acquire indirect control of 100 percent of EN-Palisades.
ENO, the operator of the Big Rock Point facility, is currently a direct wholly owned subsidiary of Entergy Nuclear Holding Company #2 which, in turn, is a direct wholly owned subsidiary of Entergy Corporation. Therefore, Entergy Corporation is currently the indirect owner of 100 percent of ENO.
Under the proposed corporate restructuring, Entergy Nuclear Holding Company #2 will be eliminated and ENO will become a direct subsidiary of a new parent company called EquaGen LLC. EquaGen LLC will be owned in equal shares by two new intermediate holding companies as follows. Entergy EquaGen, Inc. is being created as a direct subsidiary of Entergy Corporation and will own 50 percent of EquaGen LLC. Similarly, Enexus EquaGen, LLC is being created as a direct subsidiary of Enexus and will also own 50 percent of EquaGen LLC.
Accordingly, following the corporate restructuring, Entergy Corporation and Enexus will each have indirect control of 50 percent of ENO.
Finally, ENO will be converted from a corporation to a limited liability company and its name will be changed from Entergy Nuclear Operations, Inc. to EquaGen Nuclear LLC. Under Delaware law, EquaGen Nuclear LLC will assume all of the rights and responsibilities of ENO, and it will be the same company (legal entity) both before and after the conversion and name change. Also, EN-Palisades will undergo a name change to become Enexus Nuclear Palisades, LLC. The staff understands that ENO will request an administrative license amendment to conform the Big Rock Point license in the near future.
Notice of the request for approval and an opportunity for a hearing was published in the Federal Register on January 16, 2008 (73 FR 2956). By petition dated February 5, 2008, Locals 369 and 590, Utility Workers Union of America (UWUA), American Federation of Labor-Congress of Industrial Organization, representing plant workers at the Pilgrim Nuclear Power Station located in Plymouth, Massachusetts, responded to the Federal Register notice and requested a hearing and leave to intervene as a party in the Big Rock Point proceeding. On June 12, 2008, Local 369 filed a notice of withdrawal of its petition to intervene. The notice of withdrawal did not apply to Local 590.
The request for a hearing is currently pending before the Commission. Pursuant to 10 CFR 2.1316, during the pendency of a hearing, the staff is expected to promptly proceed with the approval or denial of license transfer requests consistent with the staffs findings in its safety evaluation. Notice of the staffs action shall be promptly transmitted to the presiding officer and parties to the proceeding. Commission action on the pending hearing requests is being handled independently of this action.
Also, an intervenor from Oswego, New York, submitted two letters to the Commission with public comments dated January 21, 2008. The public comments are addressed by the NRCs safety evaluation dated July 28, 2008.
Pursuant to 10 CFR 50.80(a), 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. Upon review of the information in the application as supplemented and other information before the Commission, and relying upon the representations and agreements in the application as supplemented, the NRC staff concludes that the proposed indirect transfer of control of the license held by EN-Palisades to Enexus, as described herein, will not affect the qualifications of EN-Palisades as holder of the Big Rock Point license. The indirect transfer of control of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the NRC. Furthermore, the NRC staff concludes that the proposed corporate restructuring involving new intermediate and ultimate parent companies over ENO, as described herein, will not affect the qualifications of ENO as holder of the Big Rock Point license. The indirect transfer of control of the license as held by ENO, to the extent affected by the proposed restructuring, is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission.
The NRC staff concludes that the conversion of Entergy Nuclear Operations, Inc. to EquaGen Nuclear LLC would not constitute a direct transfer of the licenses to the extent held by ENO. Therefore, no consent to the proposed conversion is necessary.
The findings set forth above are supported by the NRCs safety evaluation dated July 28, 2008.
III.
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the Atomic Energy Act of 1954, as amended, 42 USC §§ 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the application regarding the indirect license transfer discussed above related to the proposed corporate restructuring and establishment of Enexus is approved, subject to the following conditions:
1 EN-Palisades shall enter into the $700 million Support Agreement with Enexus Energy Corporation as described in the application, no later than the time the proposed transactions and indirect license transfer occurs. EN-Palisades shall take no action to cause Enexus Energy Corporation, or its successors and assigns, to void, cancel, or modify the Support Agreement or cause it to fail to perform, or impair its performance under the Support Agreement, without prior written consent of the NRC. The Support Agreement may not be amended or modified without 30 days prior written notice to the Director of the Office of Nuclear Material Safety and Safeguards or his designee. An executed copy of the Support Agreement shall be submitted to the NRC no later than 30 days after the completion of the proposed transactions and the indirect license transfer.
EN-Palisades shall inform the NRC in writing anytime it draws upon the Support Agreement.
2 The ten separate support guarantees from various Entergy subsidiaries, which total $315 million, including the support guarantee relating to Big Rock Point, may be revoked when, and conditioned upon, implementation of the new $700 million Support Agreement at the time the proposed restructuring and indirect license transfer are completed.
3 The Parent Company Guarantee may be terminated when, and conditioned upon, replacement with an alternative financial assurance mechanism that is acceptable under the terms of 10 CFR 50.75(e)(1) at the time the proposed restructuring and indirect license transfer are completed.
4 Should the proposed corporate restructuring and establishment of Enexus not be completed within one year from the date of this Order, this Order shall become null and void, provided, however, upon written application and good cause shown, such date may be extended by Order.
This Order is effective upon issuance.
For further details with respect to this Order, see the application dated July 30, 2007, as supplemented by letters dated October 31, and December 5, 2007, and January 24, March 17, April 22, and May 2, 2008, and the NRCs safety evaluation dated July 28, 2008, which are available for public inspection at the Commission's Public Document Room (PDR), located at One White Flint North, Public File Area 01 F21, 11555 Rockville Pike (first floor), Rockville, Maryland and accessible electronically from 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. Persons who do not have access to ADAMS or who encounter problems in 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 28th day of July 2008.
FOR THE NUCLEAR REGULATORY COMMISSION
/RA/
E. William Brach, Director Division of Spent Fuel Storage and Transportation Office of Nuclear Material Safety and Safeguards