ML091520154

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Order Extending the Effectiveness of the Approval of the Indirect Transfer of Facility Operating Licenses for Big Rock Point, James A. FitzPatrick Nuclear Power Plant, Indian Point, Palisades, Pilgrim, and Vermont Yankee
ML091520154
Person / Time
Site: Palisades, Indian Point, Pilgrim, Vermont Yankee, Big Rock Point, FitzPatrick  Entergy icon.png
Issue date: 07/24/2009
From: Pickett D
Plant Licensing Branch 1
To: Kansler M
Entergy Nuclear Operations
Pickett D
References
TAC ME1286, TAC ME1287, TAC ME1288, TAC ME1289, TAC ME1290, TAC ME1291, TAC ME1292, TAC ME1293, FOIA/PA-2013-0151
Download: ML091520154 (12)


Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 July 24, 2009 Mr. Michael R. Kansler President &CEOICNO Entergy Nuclear Operations, Inc.

1340 Echelon Parkway Jackson, MS 39213

SUBJECT:

ORDER EXTENDING THE EFFECTIVENESS OF THE APPROVAL OF THE INDIRECT TRANSFER OF FACILITY OPERATING LICENSES FOR BIG ROCK POINT, JAMES A. FITZPATRICK NUCLEAR POWER PLANT, INDIAN POINT NUCLEAR GENERATING UNIT NOS. 1,2, AND 3, PALISADES NUCLEAR PLANT, PILGRIM NUCLEAR POWER STATION, AND VERMONT YANKEE NUCLEAR POWER STATION (TAC NOS. ME1286, ME1287, ME1288, ME1289, ME1290, ME1291, ME1292, AND ME1293)

Dear Mr. Kansler:

The enclosed Order is being issued in response to Entergy Nuclear Operations, Inc.'s request dated May 15, 2009, as supplemented on May 29, 2009, on behalf of itself and Entergy Nuclear Palisades, LLC, Entergy Nuclear FitzPatrick, LLC, Entergy Nuclear Indian Point 2, LLC, Entergy Nuclear Indian Point 3, LLC, Entergy Nuclear Generation Company, and Entergy Nuclear Vermont Yankee, LLC (together, Applicants), for an extension of the effectiveness of the Nuclear Regulatory Commission's (NRC's) Orders dated July 28, 2008. The NRC's Orders dated July 28, 2008, consented to the indirect transfer of control of the licenses of the subject facilities pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations in connection with a proposed corporate restructuring and the establishment of Enexus Energy Corporation.

The NRC staff has considered the information presented in your request and has determined that good cause has been shown to extend the effectiveness of the NRC's Orders dated July 28, 2008, to January 28, 2010. The enclosed Order approves the extension.

The plant-specific license amendments reflecting the name changes from Entergy to Enexus and Entergy Nuclear Operations, Inc. to EquaGen Nuclear LLC will be issued and made effective when the restructuring is complete. The appropriateness of these changes was previously acknowledged in the safety evaluation (SE) enclosed with the NRC Orders of July 28, 2008.

M. Kansler

- 2 The SE supporting the Orders of July 28, 2008, remains valid. The enclosed Order has been forwarded to the Office of the Federal Register for publication.

Sincerely, Douglas V. Pickett, Senior Project Manager Project Directorate 1-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-293 50-003, 50-247, 50-286, 72-51 50-333, 72-12 50-271, 72-59 50-255, 72-7 50-155,72-43

Enclosure:

As stated cc w/encl: See next page Additional Distribution via Listserv

cc: Big Rock Point ISFSI 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 Docket Nos. 50-155, 72-43 Michigan Department of Attorney General Special Litigation Division 525 West Ottawa St 6th Floor, G. Mennen Williams Building Lansing, MI 48913 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 AI 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

- 3 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, M148909-8130 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 ENTERGY NUCLEAR OPERATIONS, INC.

ENTERGY NUCLEAR GENERATION CO.

(Pilgrim Nuclear Power Station)

ENTERGY NUCLEAR INDIAN POINT 2, LLC (Indian Point Nuclear Generating Unit Nos. 1 and 2)

EI\\ITERGY NUCLEAR INDIAN POINT 3, LLC (Indian Point Nuclear Generating Unit No.3)

ENTERGY NUCLEAR FITZPATRICK, LLC (James A. FitzPatrick Nuclear Power Plant)

ENTERGY NUCLEAR VERMONT YANKEE, LLC (Vermont Yankee Nuclear Power Station)

ENTERGY NUCLEAR PALISADES, LLC (Palisades Nuclear Plant)

(Big Rock Point)

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Docket No. 50-293 License No. DPR-35 Docket Nos.50-003, 50-247, and 72-51 License Nos. DPR-5, DPR-26 Docket No. 50-286 License No. DPR-64 Docket Nos. 50-333 and 72-12 License No. DPR-59' Docket Nos. 50-271 and 72-59 License No. DPR-28 Docket Nos. 50-255 and 72-7 License No. DPR-20 Docket Nos. 50-155 and 72-43 License No. DPR-6

- 2 ORDER EXTENDING THE EFECTIVENESS OF THE APPROVAL OF THE INDIRECT TRANSFER OF FACILITY OPERATING LICENSES Entergy Nuclear Operations, Inc. (ENO) and Entergy Nuclear Generation Company (Entergy Nuclear) are co-holders of the Facility Operating License, No. DPR-35, which authorizes the possession, use, and operation of the Pilgrim Nuclear Power Station (Pilgrim).

Pilgrim is a boiling water nuclear reactor that is owned by Entergy Nuclear and operated by ENO. The facility is located on the western shore of Cape Cod in the town of Plymouth on the Entergy Nuclear site in Plymouth County, Massachusetts.

ENO and Entergy Nuclear Indian Point 2, LLC (ENIP2) are co-holders of the Facility Operating License, No. DPR-5, which authorizes the possession of the Indian Point Nuclear Generating Unit NO.1 (IP1). IP1 is a pressurized water nuclear reactor that is owned by ENIP2 and maintained by ENO. IP1 was permanently shut down in 1974 and placed in a safe storage condition pending decommissioning. The facility is located in Westchester County, New York.

ENO and ENIP2 are co-holders of the Facility Operating License, No. DPR-26, which authorizes the possession, use, and operation of the Indian Point Nuclear Generating Unit NO.2 (IP2). ENO and Entergy Nuclear Indian Point 3, LLC (ENIP3) are co-holders of the Facility Operating License, No. DPR-64, which authorizes the possession, use, and operation of the Indian Point Nuclear Generating Unit No.3 (IP3). IP2 and IP3 are both pressurized water nuclear reactors that are owned by ENIP2 and ENIP3, respectively, and operated by ENO. The facilities are located in Westchester County, New York.

ENO and Entergy Nuclear FitzPatrick, LLC (EN-FitzPatrick) are co-holders of the Facility Operating License, No. DP'R-59, which authorizes the possession, use, and operation of the James A. FitzPatrick Nuclear Power Plant (FitzPatrick). FitzPatrick is a boiling water nuclear reactor that is owned by EN-FitzPatrick and operated by ENO. The facility is located in Scriba, Oswego County, New York.

- 3 END and Entergy Nuclear Vermont Yankee, LLC (EN-Vermont Yankee) are co-holders of the Facility Operating License, No. DPR-28, which authorizes the possession, use, and operation of the Vermont Yankee Nuclear Power Station (Vermont Yankee). Vermont Yankee is a boiling water nuclear reactor that is owned by EN-Vermont Yankee and operated by END.

The facility is located in the town of Vernon, Windham County, Vermont.

END and Entergy Nuclear Palisades, LLC (EN-Palisades) are co-holders of the Renewed Facility Operating License, No. DPR-20, which authorizes the possession, use, and operation of the Palisades Nuclear Plant (Palisades). Palisades is a pressurized water nuclear reactor that is owned by EN-Palisades and operated by END. The facility is located in Van Buren County, Michigan.

END and EN-Palisades are co-holders of the Facility Operating License, No. DPR-06, which authorizes the possession of Big Rock Point. Big Rock Point is an independent spent fuel storage installation (ISFSI) that is owned by EN-Palisades and operated by END. The facility is located in Charlevoix County, Michigan.

II The NRC's Orders dated July 28, 2008, consented to the indirect transfer of control of the licenses of the above facilities pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations in connection with a proposed corporate restructuring and establishment of Enexus Energy Corporation. By its terms, the Orders of July 28, 2008, become null and void if the license transfers are not completed by July 28, 2009, unless upon application and for good cause shown, such date is extended by the Commission.

- 4 III By letter dated May 15, 2009, as supplemented by letter dated May 29, 2009, ENO, acting on behalf of itself, Entergy Nuclear, ENIP2, ENIP3, EN-FitzPatrick, EN-Vermont Yankee, and EN-Palisades, submitted a request for an extension of the effectiveness of the Orders of July 28, 2008, such that they would remain effective until January 28, 2010. According to the submittal, diligent efforts have been made to obtain the required State and Federal regulatory approvals, and many of the required approvals have been obtained. However, proceedings are ongoing before the New York State Public Service Commission and the State of Vermont Public Service Board and these two State agencies may not complete their regulatory approval processes in time to complete the restructuring and establishment of Enexus Energy Corporation prior to July 28, 2009, as required by the NRC Orders consenting to the proposed restructuring and associated indirect license transfers.

In addition, according to the submittal, considerable progress has been made in securing financing to support the proposed transactions. However, uncertainties in the current financial markets and the need to obtain required State regulatory approvals have slowed the process of obtaining all of the requisite financing necessary to complete the transactions, making it difficult for the licensees to conclude that all of the necessary arrangements will be complete in time to support a closing of the transactions by July 28, 2009.

Finally, the licensee has concluded that there has been no material change in the technical and financial qualifications presented in the original application and relied upon by the NRC staff under which the NRC issued the Orders. According to the submittal, the technical qualifications of the new organization and other bases for approving the transfers remain intact, and the various

- 5 inter-company contractual arrangements and the financial support arrangements, as described in the original application and supplemental information, remain valid and fully support the NRC staff's findings.

On June 3, 2009, Mr. Sherwood Martinelli submitted a request for hearing regarding the extension, which is currently pending before the Commission.

The NRC staff has considered the submittal of May 15, 2009, as supplemented by letter dated May 29, 2009, and has determined that good cause has been shown to extend the effectiveness of the Orders of July 28, 2008, as requested.

IV Accordingly, pursuant to Sections 161b, 161i, 1610, and 184 of the Atomic Energy Act of 1954, as amended, 42 USC §§ 2201(b), 2201(i), 2201(0), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the effectiveness of the Orders of July 28, 2008, described herein are extended such that if the proposed corporate restructuring and establishment of Enexus Energy Corporation is not consummated by January 28, 2010, the Orders of July 28, 2008, shall become null and void, unless upon application and for good cause shown, such date is further extended by Order.

This Order is effective upon issuance.

For further details with respect to this Order, see the submittal dated May 15, 2009 (Agencywide Document Access and Management System (ADAMS) Accession No. ML091420271), as supplemented by letter dated May 29, 2009 (ADAMS Accession No. ML091600059), which may be examined, and/or copied for a fee, at the NRC's Public Document Room, located at One White Flint North, 11555 Rockville Pike (first floor), Rockville,

- 6 MD, and accessible electronically through the ADAMS Public Electronic Reading Room link at the NRC Web site: http://www.nrc.qov.

Dated at Rockville, Maryland, this 24th day of July 2009.

FOR THE NUCLEAR REGULATORY COMMISSION Charles L. Miller, Director Office of Federal and State Materials and Environmental Management Programs Jo eph G. Giitter, Director Div slon of Operating Reactor Licensing a ice of Nuclear Reactor Regulation Michael F. Weber, Director Office of Nuclear Material Safety and Safeguards

ML091520154 OFFICE LPL1-1/PM LPL1-1/LA IOLB/BC PFPB/BC LPL1-1/(A)BC NAME DPickett SLittle TKoib for NSalgado LHall for RCarlson JBoska DATE 06/03/09 06/03/09 06/05/09 06/08/09 06/09/09 OFFICE OGC DORLID NMSSID FSMEID NAME BMizuno JGiitter MWeber CMiller DATE 06/30 I 09 07/02/09 07/06/09 07/16/09