ML12079A288

Letter Re Case Nos. R3-20110124-27, R3-20110124-27-NRD, R3-20110124-27-2 and R3-20110124-27-3

ML12079A288
Person / Time
Site:	Indian Point
Issue date:	03/16/2012
From:	Ventosa J Entergy Corp
To:	Moore E, Rudolph T Office of Nuclear Reactor Regulation, State of NY, Dept of Environmental Conservation
References
IPEC-ADM-12-009, R3-20110124-27, R3-20110124-27-2, R3-20110124-27-3, R3-20110124-27-NRD
Download: ML12079A288 (38)

Text

Indian Point Energy Center 450 Broadway, GSB P.O. Box 249 n er y Buchanan, N.Y. 10511-0249 Tel (914) 254-6700 John A Ventosa Site Vice President Administration March 16, 2012

[PEC-ADM- 12-009 Edward Moore, P.E.

Regional Spills Engineer Department of Environmental Conservation, Region Three 21 South Putt Comers Road New Paltz, New York 12561 Thomas Rudolph, P.E.

Regional Engineer Department of Environmental Conservation, Region Three 100 Hillside Avenue, Suite IW White Plains, New York 10603 Re: Case No. R3-20110124-27, R3-20110124-27-NRD, R3-20110124-27-2, R3-20110124-27-3

Dear Mr. Moore and Mr. Rudolph:

In accordance with the Order on Consent (the "Order") in the above-referenced matter, this correspondence certifies that Respondents have completed the following items as required in the Schedule of Compliance (the "Schedule") attached to the Order:

1. Submission of a Remedial Investigation Work Plan to determine the extent of subsurface (soil and groundwater) petroleum (transformer oil) contamination (Item L.A of the Schedule) on January 27, 2012 (copy enclosed);

2. Submission of a Transformer Secondary Containment Evaluation Plan to evaluate the integrity of the #21 main transformer secondary containment system (Item II.A of the Schedule) on February 16, 2012 (copy of plan revised to include NYSDEC staff comments enclosed).

3. Review of the Department's Chemical Bulk Storage regulations, completion of a compliance review of all registered tanks with those regulations, and development of a checklist of chemical bulk storage regulations applicable to Indian Point Units 2 and 3 for the purpose of allowing

-.- Respondents-to-provide annuapart of the Spills-PreventioaRepon-update-required-......

pursuant to 6 NYCRR Section 598. l(k)(2)(vii) and Annual Inspection required pursuant to 6 NYCRR Section 598.7(c)(2)(v) (Item III.A. of the Schedule). Initial checklists were completed and submitted to the Department on April 14, 2011;

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Page two IPEC-ADM- 12-009

4. Determination of the Expected Useful Life of each tank and associated piping, based upon existing inspection reports or additional inspections, certifying that information as part of the Spill Prevention Report required pursuant to 6 NYCRR Section 598. 1(k)(2)(vii), except for Tank 008-2, which has been removed from service and is being closed (Item I.C of the Schedule). Expected Useful Life information was submitted to the Department on April 14, 2011; and

5. Completion of the inspection and repairs of tanks HMST- I I and HMST 12 (Item If.B. of the Schedule). The inspection and repair report for HMST- I I was submitted to the Department on November 14, 2011 (copy enclosed). A copy of the inspection and repair report for HMST-12 is also enclosed. Tanks HMST- 11 and HMST- 12 presently comply with all applicable laws and regulations.

If you have any questions regarding the above, please contact Dara Gray at (914) 254-8414.

Sincerely, John . Ventosa Site Vice President cc: Kelli M. Dowell, Esq., Assistant General Counsel - Environmental, Entergy Corporation Robert Walpole Dara Gray John Parker, Esq., Regional Attorney (electronic copy in .pdfformat on compact disk only)

Andrew 0. Guglielmi, Esq., NYSDEC Office of General Counsel (electroniccopy in .pdffonnat on compact disk only)

US Nuclear Regulatory Commission Attention Document Control Desk Washington DC 20555-0001

STATE OF NEW YORK I)EPARTMEiNT OF ENVIRONMENTAL( CONSERVATION x

In the Matter of Violations of Article 17 and 40 of the Environmental Conservation Law ("ECL")

and Navigation Law and Parts 750 and 595 through 599 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of ORDER ON CONSENT New York ("6 NYCRR"),

lntergy Nuclear Indian Point 2, LI.C and Entergy Case Nos. R3-20110124-27-1 Nuclear Indian Point 3, LLC, R3-20110124-27-NR2 R3- 201 10124-27-2 Respondents. R3-20110124-27-3 (Westchester County) x WHEREiAS:

I. The Department of EInvironmental Conservation (" DIEC" or "the Department") is a Department of the State of New York ("the State") with jurisdiction to enforce the environmental laws of the State pursuant to Environmental Conservation Law ("ECI.") Section 3-0302.

2. DEC has jurisdiction over water pollution control pursuant to ECI. Article 17 and over petroleum spills under Navigation Law Article 12, and has jurisdiction over the bulk storage of chemicals pursuant to ECI Article 40.

3. l'he Commissioner of 'nvironmental Conservation ("the Commissioner") is the designated trustee for New York State's natural resources. With regard to petroleum spills, the Department carries out the State's role as trustee for natural resources pursuant to E-C, Section 1-0101, 3-0301, and 15-0601 and Article 12 of the New York Navigation Law (e.g. Navigation Law &Sction 170).

4. The purpose of ECL Article 40 (Hazardous Substances Bulk Storage Act) is to prevent releases of hazardous substances to air, water and lands of the State. In order to control bulk storage of hazardous substances, DEC promulgated regulations at 6 NYCRR Section 595 to 599 which is enforced under its Chemical Bulk Storage program.

5. This Order on Consent and Administrative Settlement ("Order") is issued pursuant to the Commissioner's authority under the New York ECI Sections 3-0301 and 71-2727 to protect and to restore the environment and the natural resources of the State of New York.

6. This Order is entered into without the taking of testimony, without any adjudication of issues of law or fact, and is in the parties' respective interests and in the public interest. Respondents affirmatively waive their respective rights to a public hearing in the manner provided by 6 NYCRR Part 622 for the matters and'events addressed by this Order, consent to issuing and entering of this Order, agree not to contest the authority or jurisdiction of the Commissioner and of the Department to enter into or enforce this Order, and agree to be bound by the terms, provisions and conditions of this Order, including the .c:hedule of Compliance attached hereto.

RESPONDENTS AND THE FACIITTY

7. The Indian Point Energy Center located in Buchanan, New York consists of two separate operating units, known as Unit 2 and Unit 3, respectively.

8. Entergy Nuclear Indian Point 2, [IC ("Indian Point 2") is a limited liability company with offices at 450 Broadway, Buchanan, NY 10511. Indian Point 2 is the owner of Unit 2 and its associated appliances and appurtenances, including the Unit 2 #21 main

-Efa-sfrrme,-Transformer deluge system and surrounding containment area and tanks for the bulk storage of chemicals.

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9. Entergy Nuclear Indian Point 3, LLC ("Indian Point 3") is a limited liability company with offices at 450 Broadway, Buchanan, NY 10511. Indian Point 3 is the owner of Unit 3 and associated tanks for the bulk storage of chemicals.

10. "Respondents" as used hereafter means collectively Indian Point 2 and Indian Point 3, as appropriate.

i i. Some of Respondent Indian Point 2's storage tanks are regulated by the Department pursuant to 6 NYCRR Sections 595 through 599 and are registered with the Department under registration number Chemical Bulk Storage #3-0W0107.

12. Some of Respondent Indian P'oint 3's storage tanks are regulated IW th, Department pursuant to 6 NYCRR Sections 595 through 599 and are registered with the Department under registration number Chemical Bulk Storage #3-000071.

13. The Unit 2 #21 main transformer ("Transfornmer"), manufactured by Siemens, has a total oil capacity of 19,740 gallons. The petroleum (transformer oil) is I lyvolt i1, a severely hydrotreated napthenic petroleum - a "petroleum" as defined in Section 172 of the Navigation iaw. The Material Safety Data Sheet for the petroleum (transformer oil) confirms that it is a non-PCB oil.

14. he'Transformer containment area is a moat consisting of concrete walls which go down to bedrock and is filled with bluestone ("containment moat" or "moat"). Respondents state that the containment moat has been designed consistent with National Fire Protection Association requirements to contain at least 110% of the volume of oil from the Transformer as well as the fire protection deluge water released at the design flow rate and for the design time period in the event a fire results from the failure of the Transformer.

15. In the event of a Transformer fire, the deluge system sprays water downward onto the Transformer, and is designed to descend through the bluestone in the containment 3

moat along with oil which may have been released during the event. Once in the moat, the oil should.float on top of the deluge water. If the moat were allowed to fill to capacity, the oil would rise above the top of the bluestone and could become exposed to flames assotiated with a Transformer fire. I lowever, the moat includes a design feature intended to maintain oil at a depth of six (6) inches or more below the top of the bluestone within the moat, thereby minimizing the potential for exposing the oil from flames.

16, This feature consists of a ten (10) inch diameter pipe with an inlet within and near the bottom of the moat and an outlet located at the top of the moat. The moat is designed so that when a substantial quantity of water collects within the moat during the operation of the deluge system, water from the bottom of the moat is forced up and out of the pipe so as to maintain the level of any oil in the moat more than six (6) inches below the top of the bluestone.

'l'he outlet to this pipe allows for the passive discharge of water collected at the bottom of the moat to the Unit 2 storm drain system without collection or sampling prior to discharge.

D)ischarges entering the storm drain at this location flow into the Indian Point E1nergy Center discharge canal and, ultimately, to the Iludson River.

INDIAN POINT UNIT 2

1. 21 MAIN TRANSFORMER EXPLOSION AND FIRE RELEASED PIEITROLEUM (TRANSFORMR OIL) TO TFEIiNVIRONMENT Respondents state that:

17. At approximately 6:39 pm on November 7, 2010, a bushing within the Transformer failed. The bushing failure resulted in an explosion which breached the walls of the Transformer, causing the release of petroleum (transformer oil) and an ensuing fire.

18. The explosion and fire caused the water deluge system, located immediately above the Transformer and consisting of a series of spray nozzles, to activate automatically.

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Deluge water was released from the system at a rate of 1,365 gallons per minute to suppress the ffire.

19. At 6:54 pm, a second explosion of the Transformer occurred. Subsequently, emergency response personnel made their way to the Transformer and reported that the fire had been extinguished and began using fire hoses to spray fire suppression loam on the area affected by the explosion. Thereafter, the water deluge system was secured (i.e., turned off).

20. At 7:01 pm, Respondent Indian Point 2 contacted the United Stated Nuclear Regulatory Commission ("NRC") Operations Center Dutv Officer and the N RC's Senior Residents to notify them of the incident. The Unit 2 reactor automatically shutdOwn as a result of the Transformer failure and Respondent Indian Point 2's personnel maintained the reactor in a safe condition throughout the incident and thereafter.

21. At 8:28 pm, the Indian Point Operations Department completed a condition report indicating that petroleum (transformer oil) mixed with water from the deluge system had overflowed the Transformer containment moat and entered the adjacent turbine building at both the 15 ft. and 5 ft. elevations. The condition report indicated that all sump pumps had been secured within the turbine building and that no oil had been detected in the discharge canal or Iludson River at that time.

22. Following a telephone conversation among the Indian Point I'mergencv Planning Manager, the Commissioner of the Westchester County D)epartment of .nvironmental Services, and the First Deputy of the New York State Office of Emergency Management, the State Office of lEmergency Management notified the Department of the Transformer incident at 9:49 pm (Spill Report #1008234).

23. At 10:00 pm, the Oil Spill Response Organizations under contract with Respondent Indian Point 2 arrived for incident response and to commence cleanup activities.

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24. At 3:53 am tile following morning (November 8, 2010), an oil sheen was observed in the Indian Point discharge canal.

25. At 11:00 am on November 8, 2010, an oil sheen was observed in the discharge canal and outside the canal in the 1-ludson River. At 12:08 pm that day, Respondents contacted the Department's spill hotline to report this condition (Spill Report #1008306). This Spill Report number was closed by the Department on the same day as it was related to Spill Report

1. 1008234 provided the prior evening.

SPILL RESPONSE, CLEANUP ANI) INVESTIGATION RespondenLs state that:

26. On the morning of November 8, 2010, the Oil Spill Response Organizations commenced vacuuming oil from the containment moat, storm drains, and the turbine building floors and sumps. Absorbent booms and sweeps were installed at various locations along the length of the discharge canal. These activities continued for several weeks.

27. On November 17, 2010, absorbent booms were deployed onto the riverfront area of Respondent Indian Point 3's property approximately 300 feet south of the Indian Point Energy Center's discharge canal to address a sheen noted to be emanating from this area. While the booms remained in place, low-pressure power washing of the riverfront area was performed multiple times by Respondents' contractors such that within 21 days no visible sheen remained. No other areas of the riverfront were observed to be impacted, and the U.S.. Coast Guard informed Respondent Indian Point 2 that no sheen had been observed as a result of its inspection of triple diamond (environmentally sensitive) areas in the I ludson River that could feasibly have been impacted by the release.

...... .11,112 M. ga lHotns of oil had been ,'ecovered from the Transformer, the containment moat, and areas outside the containment moat, 6

including the discharge canal, riverfront area and the Hudson River. The petroleum (transformer oil) was the fuel for the post-explosion fire, but a precise measure of the quantity consumed in the fire is not possible.

CONI)ITION OF THE # 21 MAIN TRANSFORMER CONTAINMENT MOAT

29. Subsequent investigation identified two construction-related structural conditions that contributed to the release of petroleum (transformer oil) from the containnient moat to the environment during the incident and subsequent fire-fighting efforts. First, Respondent Indian Point 2 discovered a notch in the upper wall of the moat adjacent to the turbine building. Based upon oil staining in the area of the notch, some of the petroleum (transformer oil)/deluge water mixture appeared to have flowed in the direction of and through the notch, subsequently flowing into the adjacent turbine building and a nearby stormdrain. Second, following excavation of contaminated stone from the moat, Respondent Indian Point 2 discovered a hole in the bottom of the moat. Based upon oil staining in the area of the hole, some of the petroleum (transformer oil)/deluge water mixture traveled through the stone within the containment moat and exited the moat through this hole.

30. The existence of these two structural faults prevented the containment moat from retaining the petroleum (transformer oil) as designed, and resulted in releases of petroleum (transformer oil) to the ground beneath the moat (through the hole) and to storm drains which drain to the discharge canal and then the Hudson River (after exiting the moat through the notch).

.31. While temporary containment measures remained in place to prevent oil from entering the Iludson River, the notch at the top of the moat was repaired and, following 7

engineering evaluations of support structures within the moat and other safety issues and after several months, the hole in the bottom of the moat was repaired.

REGULATORY REQUIREMI-NTS 01:11 TI CIlAN WAlE-I ACT AND STATE POLLUTANT I)ISCIIARiG ELIMINATION SYSTIEM

32. Respondents are co-permittees on State Pollutant Discharge I:limination System

("SPDFS") permit number NY0004472 which authorizes the discharge of certain pollutants from Unit 2 and Unit 3 in accordance with specified limits into the 1 ludson River from the discharge canal.

33. The SPDE.S permit does not authorize the discharge of petroleum from the discharge canal to the I ludson River.

34. According to 6 NYCRR Section 750-2.8(a)(2), a SPDFIS permittee shall, at all times, properly operate and maintain all disposal facilities, which are installed or used by the permittee to achieve compliance with the conditions of its SPDES permit.

NATURAL RESOURCE l)AMAGIFS CAUSED 13Y PEiTROLEUM RELEASE TO TI Ili E'NVIRONMENT

35. New York's natural resources, including land, fish, shellfish, wildlife, biota, air, water, groundwater, and other such resources, are held in trust by the State for the benefit of its citizens, Navigation Law, Sections 170 and 172 (definition of "natural resources").

36. The release of petroleum (transformer oil) from Respondent Indian Point 2's facility into the Hudson River injured the natural resources of New York.

37. The Department incurred costs when responding to, assessing, and monitoring the discharge.

38. Respondent Indian Point 2 did not have a permit from the Department to oil)--into the lHudson River, a natural resource of the State oif New York.

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39. Pursuant to a formula utilized by the Department's Natural Resource D)amage Unit to calculate the natural resource damages associated with a release of petroleum (transformer oil) to a river, the Department calculated that the natural resource damages due the State for the release of petroleum (transformer oil) to die Hludson River is $62,000.

40. The Department incurred S5,000 in natural resource damage assessment and restoration oversight costs in this matter.

EINVIRONMENTAl. CONSIiRVATION LAW V1OI.ATIONS RELI.ATED TO TRANSFORMEiR E'XPLOSION AND SPI)F.S RI'QUIREIMENTS

41. Respondent Indian Point 2 violated:

A. ECL Section 17-0701(1)(a), which makes it unlawful for any person, until a SPDES permit has been granted, to make or cause to make or use any outlet or point source for the discharge of sewage, industrial waste or other wastes or the effluent therefrom, into the waters of this state because Respondent Indian Point 2 did not have a permit from the Department to discharge petroleum (transformer oil) into the I ludson River.

B. Respondents' SPI)FS permit number NY0004472, which does not authorize the discharge of petroleum (transformer oil) into the storm drain system or into the I ludson River.

C. ECL Section 17-0803 which makes it unlawful to discharge pollutants to the waters of the state from any outlet or point source without a S1I'FES permit or in a manner other than as prescribed by such permit, because Respondent Indian Point 2 did not have a permit from the Department to discharge petroleum (transformer oil) into the I ludson River; and 6 NYCRR Section 750-1.4(a) which provides no person shall discharge or cause a discharge o-any pollutant without a SPDES permit having been issued to such person pursuant to this Part.

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D. 6 NYCRR Section 75 0 -2.8(a) for failing to properly' maintain all disposal facilities installed or used by the Respondent Indian Point 2 to achieve compliance with the conditions of the SPI)ES permit. The notch at the top of the moat and the hole at the bottom of the moat were not consistent with the moat's design, prevented the moat from functioning as intended, and resulted in the release of oil from the moat to storm drains and the environment.

1i. Navigation Law Sections 173(1) which prohibits the discharge of petroleum, and 176(1) for failure to contain a discharge of petroleum, because Respondent Indian Point 2's containment moat did not contain the spill of petroleum (transformer oil), some of which entered the discharge. canal and the I ludson River.

1:. Environmental Conservation Law Section 17-0501, which makes it unlawful for any person, directly or indirectly, to throw, drain, run or otherwise discharge into such waters organic or inorganic matter that shall cause or contribute to a condition in contravention of the standards adopted by the department pursuant to .CI. Section 17-0301.

The standards adopted by the department pursuant to ECL Section 17-0301 are set forth in 6 NYCRR 703.2 "Narrative Water Quality Standards". 6 NYCRR Section 703.2 provides the Water Quality Standard for Oil and Floating Substances which prohibits "visible oil film or globules of grease" in the surface waters of the State.

G. Navigation Law Section 175 and 17 NYCRR Section 32.3, which require that any person responsible for causing a discharge shall immediately notify the department, but in no case later than two hours after the discharge, and in addition, that the owner or operator of any facility from which petroleum has been discharged; and any person who was in actual or constructive control of such petroleum immediately prior to such discharge, shall Immediately give thei department the notification required by this Part unless such owner, operator or person has adequate assurance that such notification has already been gIivwn. I'he 10

State Office of Emergency Management provided notification to the Department more than three hours after the incident occurred and Respondent Indian Point 2 did not independently and officially report the spill until 12:10 p.m. on November 8, 2010, more than seventeen hours after the 1'ransformer explosion occurred.

42. lCI, Section 71-1929 provides that a person who fails to perform any duty imposed by Titles 1 through Hl inclusive and litle 19 of Article 17, the ruEks and reLgulations promulgated thereunder, or orders or determinations of the commissioner iprom1ulIga)te1d thereto, shall be liable for a penalty of not to exceed thirty-seven thousand, five hundred dollars

($37,500.00) per day for each violation, and may be enjoined from any continuing violation.

43. Navigation Law Section 192 provides that arty person who violates any of the provisions of Article. 12 of the Navigation law or any rule promulgated thereunder shall be liable to a penalty of not more than twenty-five thousand dollars ($25,000.00) for each offense.

ENVIRONMENTAl, CONSERVATION LAW VIOLATIONS OF TI IF, CHEMICAL BULK STORAGE, PROGRAM AT IN1I1AN P1OINT UNIT 2

44. On January 25, 2011, Department staff performed an inspection of Unit 2 for the purpose of determining compliance with the Chemical Bulk Storage program regulations.

45. On January 25, 2011, Department staff dLCumented that Respondent Indian P'oint 2 failed to comply with the requirements of the Chemical Bulk Storage ['rograrn regulations specified as follows.

A. 6 NYCRR Section 598.7(c)(2)(v) requires annual inspections that must include reviewing compliance with 6 NYCRR Parts 596, 598 and 599. Section 598.1(k) (2) (vii) of 6 NYCRR requires the status reports on compliance with Parts 596, 598 and 599 to be

_incorporated into the Spill Preyention Report. 6 NYCRR -9c11iun.598 .1(k) requplires the Spill Prevention Report.

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B. Respondent Indian Point 2's annual compliance reports incorporated into the Spill Prevention Report did not include detail for three (3) tanks: for Tank numbered I ID)1-01, Respondent Indian Point 2's annual compliance report did not provide sufficient detail for a period of nine (9) years; for Tank numbered lIMSI"-l, Respondent Indian Point 2's annual compliance report did not provide sufficient detail for a period of seven (7) years, and for Tank numbered 1IMSI'-12, Respondent Indian Point 2's annual compliance report did not provide sufficient detail for a period of seven (7) years.

C. 6 NYCRR Section 598.7(d)(1) requires that aboveground storage tanks must be inspected for tightness, structural soundness, corrosion, wear, foundation weakness and operability; tanks must be re-inspected no later than every five years from the date (if initial inspection.

1). For tanks numbered I IMSI'-1 1 and 1 MST-12 at Unit 2, Respondent Indian Point 2 had failed to complete the five (5) year inspection after an April 2009 inspection revealed further testing was required. These tests were not conducted at that time as required, and the inspection was not completed as required for a period of fifteen (15) months.

I. 6 NYCRR Section 598.7(c) provides that: (e) Uninspected facilities. If any portion of a storage tank system is not inspected as required, the owner or operator must take the uninspected portion of the system out-of-service pursuant to the requirements of section 598.10 of this Part.

F. Tanks numbered I-IMST-1I and I IMST-12 remained in service at Unit 2 and were used to store hazardous substances listed in 6 NYCRR Part 597 Irom April 2009 until the summer of 2010. This constitutes improper use of uninspected tanks for a period of fifteen (1)55t3~ndhs. No releae of hazardous substances from these tanks or their respective secondary containments occurred during this period.

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G. On January 31, 2011, the Department issued a Notice of Violation to Respondent Indian Point 2, informing it of the violations of the Fnvironmental Conservation Law and New York State chemical bulk storage regulations.

IiNVIRONMEiNTAL CONSERVATION LAW VIOL.ATIONS OF TI IE CHEMICAL. BULK STORAGE, PRO(GRAM AT INMIAN POINT UNIT 3

46. On January 25, 2011, Department staff performed an inspection of Unit 3 for the purpose of determining compliance with the Chemical Bulk Storage program regulations.

47. On January 25, 2011, Department staff documented that Respondent Indian Point 3 had failed to comply with the requirements of the Chemical Bulk Storage Program regulations specified as follows.

A. 6 NYCRR Section 598.7(c)(2)(v) which requires annual inspections that must include reviewing compliance with 6 NYCRR Farts 596, 598 and 599. Section 598.1(k) (2)

(vii) of 6 NYCRR requires the status reports on compliance with Parts 596, 598 and 599 be incorporated intO the Spill Prevention Report. 6 NYCRR Section 598.1 (k) requires the Spill Prevention Report.

13. Respondent Indian Point 3's annual compliance reports incorporated into the Spill Prevention Report did not include detail for Tanks numbered 001, 002, 0)03, 004, and 008-2 for a period of four years.

C. 6 NYCRR Section 599.13 which requires that the design life expectancy of all chemical bulk storage piping systems must be determined and specified in the Spill Prevention Report.

1). Respondent Indian Point 3 had failed to have the required design life expectancv specified in the ..Sll .PreventionReporI for Iho chcmrii'al bulk ..torag pipi...-..

- y.tm:;

for Tanks numbered 0)02, 003, 004 and 008-2.

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E. On January 31, 2011, the Department issued a Notice of Violation to Respondent Indian Point 3, informing it of the violations of the lnvironmental Conservation ILaw and New York State chemical bulk storage regulations.

48. Environmental Conservation Law Section 71-4303 provides for a penalty for violation of article 40 of the ECL of $25,000.00 plus $25,000.00 each day the violation continues.

NOW, having considered this matter and being duly advised, it is ORl)ERIl.) that:

I. Civil Penalty and Environmental 13enefit Project A. Civil Penalty Respondent Indian Point 2 shall be liable for a civil penalty in the amount of Ont, Million Three I lundred Fifty Thousand Dollars ($1,350,000.00) and Respondent Indian Point 3 shall be liable for a civil penalty in the amount of One I lundred Fifty Thousand Dollars ($150,000.t)0), as follows:

1. Payable Penalty- Indian l'oint 2 Five I lundred Sixty-Two Thousand Five I lundred Dollars ($562,500.00) shall be payable to the Department within forty-five (45) days of the Effective Date of this Order. DEC case.

naumbers R3-201101 24-27-1 and R3-20110124-27-2 shall be endorsed on the face of the check.

The civil penalty shall bo, paid by check, bearing the signature of Respondent Indian Point 2 or an authorized representative of Indian Point 2, made payable to the "l)epartmont of Environmental Conservation" and forwarded to John Parker, Rt-gional Attorney, Newv York State Department of IEnvironmental Conservation, Region 3, 21 South Putt Corners Road, New Paltz, NY 12561.

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2. Payable Penalty - Indian Point 3 Sixty-Two Thousand Five I lundred Dollars ($62,500.00) shall be payable to the Department within forty-five (45) days of the Effective Date of this Order. DEC case number R3-20110124-27-3 shall be endorsed on the face of the check. The civil penalty shall be paid by check, bearing the signature of Respondent Indian Point 3 or an authorized representative of Indian Point 3, made payable to the "Department of E'nvironmental Conservation" and forwarded to John Parker, Regional Attorney, New York State Department of Environmental Conservation, Region 3, 21 South Putt Corners Road, New Paltz, NY 12561.

3. Suspended Penalty - Indian Point 2 Two I lundred Forty-Seven Thousand Five [ lundred Dollars ($247,500.00) shall be suspended provided Respondent Indian Point 2 adheres to the terms and conditions of this Order applicable to it, including the Schedule of Compliance attached hereto.

4. Suspended IIenalty.-.indian Poinit 3 Twenty-Seven Tllousand Five I lundred D)ollars ($27,500.00) shall be suspended provided Respondent Indian Point 3 adheres to the terms and conditions of this Order applicable to it, including the Schedule of Compliance attached hereto.

5. Environmental Benefit Project - Indian Point 2 Within forty-five (45) clays of the Department's approval of the Environmental Benefit Project Implementation Plan pursuant to subparagraph 7 below, Respondent Indian Point 2 shall forward a check in the amount of Five Hundred Forty Thousand Dollars (S540,000.00) to a third party approved by the Department, such approval not to be unreasonably withheld, to fund the implementation of the Plan. The unspecified Environmental Benefit Project shall be in conformance with the IJepartment' s Env ironmental Benefit Project Policy. Once Respondent 15

Indian Point 2 has paid these funds to a third party approved by the D)epartment it shall have no further obligation for implementation of any Environmental Benefit Projects.

6. ' Environmental Benefit Project - Indian Point 3 Within forty-five (45) days of the Department's approval of the Environmental Benefit Project Implementation Plan pursuant to subparagraph 7 below, Respondent Indian Point 3 shall forward a check in the amount of Sixty Thousand Dollars ($60,000.00) to a third party approved by the Department, such approval not to be unreasonably withheld, to fund the implementation of the Plan. The unspecified .nvironmental Benefit Project shall he in conformancae with the Department's F-nvironmental Benefit Project Policy. Once Respondent Indian Point 3 has paid these funds to a third party approved by the l)epartment it shall have no further obligation for implementation of any Environmental Benefit Projects.

7. Environmental Benefit Project - Indian Point 2 and Indian Point 3 Within 90 days of the Effective Date of this Order, unless the D)epartment determines that additional time is warranted and grants an extension in writing, Respondents shall submit to the Department a description of, and plan for, an Environmental Benefit Project for a project or projects in the amount set forth in Paragraphs l.A.5 and 6 of this Order (S600,000.00) that includes a schedule for implementation ("E131" Implementation Plan"). The 1-BP Implementation Plan is subject to the Department's review and approval, such approval not to be unreasonably withheld, consistent with the procedures in Paragraph VIII of this Order, If the 1:131 Implementation Plan has not been approved by the Department within six months of the Effective Date of this Order, then the amount set forth in Paragraphs f.A.5 and 6 of this Order

($600,000.00) shall be paid as a penalty for the violations identified in this Order by checks,

. ... -- or,.-anau ri-Led representative of the Respondents, made payable to the "Department of Environmental Conservation" and forwarded to John Parker, 16

Regional Attorney, New York State Department of Environmental Conservation, Region 3, 21 South Putt Corners Road, New Paltz, NY 12561. DEC case numbers R3-201 10124-27-1, R3-20110124-27-2, and R3-20110124-27-3 shall be endorsed on the face of the checks. lhe failure to obtain Department approval of the l.*11 Implementation Plan shall not constitute a violation of this Order, the ECL., or Department regulations. Any statements, whether oral or written, that Respondents (or a third party at the request of the Respondents) makes with respect to the Environmental Benefit Project will include language stating that the project was undertaken as a Consent Order requirement as part of the resolution of an enforcement matter brought by the Department.

!1. Natural Resources Damages and Costs Payments.

Respondent Indian Point 2 shall pay for Natural Resources D)amages and Assessment and Oversight Costs in the amount of Sixty-Two Thousand Dollars ($62,0H)0) plus Five Thousand Dollars ($5,000) as follows:

A. Assessment and Oversight Costs. Five Thousand l)ollars (55,01)0) for NRD assessment and restoration oversight costs incurred by the l)epartment and its employees, representatives, agents and others by check, money order, or by electronic funds transfer, payable to "NYSDEC-Natural Resource Damages Fund."

B. Natural Resources Damages. Sixty-Two Thousand I)ollars ($62,000) for Natural Resources Damages caused by the release of petroleum (transformer oil) into the Hudson River, by check, money order, or by electronic funds transfer, payable to "NYSDIiC-Natural Resource Damages Fund".

BoLh Natural Resources Damages and Assessment and Oversight Costs payments shall

_6-atet Yn orty-five (45) days after the effctive date of this Order, and shall be sent to:

17

Office of General Counsel 625 Broadway, 14th Floor Albany, N.Y. 12233-1.500 ATI-FN: Sharon L. Brooks DEC case number R3-20110124-27-NRI) shall be endorsed on the face of the checks.

The provisions of this Order are not intended to and shall not be interpretetd to restrict the ultimate authority and discretion of the Commissioner to determine the use of the funds received for natural resource damages and assessment and oversight costs in accordance with applicable law.

Ill. Schedule of Compliance.

Respondents shall strictly comply with the terms of this Order and with the attached Schedule of Compliance, including requirements related to the timely filing (f any report(s),

plan(s), proposal(s) and other submissions made pursuant thereto. l1he Schedule of Compliance and all such submissions are hereby deemed incorporated into this Order, upon approval by the Department if such approval is required, and, to the extent they include affirmative obligations on the part of Respondents, those obligations shall be fully enforceable as part of this Order.

IV. Notice of Noncompliance.

A. In the event that the Department determines, in its reasonable discretion, that a Respondent has violated any provision of this Order, including, but not limited to, the failure of such Respondent to comply fully and in timely fashion with any provision of this Order, the Department may serve upon the Respondent a written notice of noncompliance setting forth the nature of, and factual basis for, the violation(s). Service of such notice may be by personal service or by certified mail return receipt requested (restricted delivery not required) to Robert Walpole, Licensing Manager, at the address of the Respondent specified in 18

Paragraphs 8 or 9 of this Order, or, if such service is refused or cannot be completed, by ordinary mail, with a copy sent by certified mail to Kelli M. Dowell, lsq., Assistant General Counsel - Environmental, Entergy Corporation, P.O. Box 1640, Jackson, MS 39215.

13. In the event that Respondent(s) has been served a Notice of Noncompliance for items required in this Order or the attached Schedu le of Compliance, Respondent(s) shall be granted a reasonable period from receipt of such notice to comply with those identified items without incurring penalty for the identified noncompliance, which shall not exceed thirty (30) days. Dhuring that time, Respondent(s) shall be granted a meeting with D)epartment staff to discuss and address the identified violations. Respondent(s) shall submit proof of compliance to the Department within thirty days of receipt of the notice from the Department or Respondent(s) may submit a request to the Department for additional time to achieve compliance together with supporting documeintation for the request, the approval of such request not to be unreasonably withheld. If Respondent(s) fails to comply with those items identified in the Notice of Noncompliance, or if Respondent(s) fails to submit to the Department proof of such compliance to the Department within thirty (30) days or within the additional time granted by the Department, the Department shall, in its reasonable discretion, determine whether assessment of all or part of the suspended penalties as set forth in Paragraphs I(A)(3) or I(A)(4) is appropriate.

V. Release.

Conditioned upon the satisfactory performance by Respondents of all of their obligations under this Order, and in consideration of the payment that will be made by Respondents to the Department pursuant to Subparagraph I(A)(1) or Subparagraph I(A)(2) ab--ve, as appropriate, and subject only to this Order:

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A. The Commissioner, as the designated Trustee for New York State's natural resources, releases Respondents, their parents and affiliates, and each of their officers, directors, employees, agents and successors and assigns (including successors in title) from all claims or causes of action under any federal or State law, and the applicable regulations, for natural resource damages, for natural resource damage assessment costs and restoration oversight costs, resulting from the matters and events described in this Order, including, but not limited to, the release of petroleum (transformer oil) into the I ludson River, described above; and

13. [he Department releases Respondents, their parents and affiliate's, and each Of their officers, directors, employees, agents and successors and assigns (including succ.ssors il title) from all claims and causes of action under any federal or State law, and the applicable regulations, resulting from the matters and events described in this Order, including, but not limited to, the identified release of petroleum (transformer oil) into the environment on November 7, 2010, and resulting from acts or omissions related to the implementation of the Chemical Bulk Storage program prior to and including January 25, 2011.

VI. Reservation of Rights and Reopeners A. Notwithstanding any other provision of this Order, the Commissioner reserves the right to initiate proceedings against Respondent Indian Point 2 and its successors and assigns (including successors in title) seeking recovery of natural resource damages based on (1) conditions that, as of the Effective Date of this Order, were unknown to the Commissioner, and were undiscoverable with the exercise of due diligence and that contribute to and materially increase an injury to, destruction of, or loss of natural resources ("Unknown Conditions"); or (2) information received by the Commissioner after the date of execution of this Order which indicates that there is material injury to, destruction of, or loss of natural resources of a type and extent unknown to the Commissioner and which were undiscoverable 20

with the exercise of due diligence as of the date of execution of this Order ("New Information").

An increase solely in the assessment of the magnitude of an injury, destruction or loss to natural resources or in the estimated or actual natural resource damages, all arising from or relating to the release, threatened release or disposal of petroleum (transformer oil) at or from the Indian Point Energy Center, shall not be considered to be "Unknown Conditions" or "New Information" within the meaning of this paragraph.

B. Nothing in this Order shall be construed as barring, affecting or diminishing any rights or authorities of the Department, the Commissioner, or the Commissioner's designee, (i) to pursue Respondents, their parents and affiliates, and each of their officers, directors, employees, agents and successors and assigns (including successors in title) for any action, other than for any matter described herein or (ii) to pursue or to take any action whatsoever against any other party.

C. Failure of Respondents to comply with the terms of this Order shall be deemed to be a violation of this Order and of the ECI. and, in the event of any such violation, the l)epartment shall be entitled to enforce the terms of this Order, and seek penalties and injunctive relief as provided by applicable law and regulation.

1). Compliance with this Order shall not excuse nor be a defense to charges of any violations of the 1.,Cl. or any regulation or permit issued thereunder, which may occur subsequent to the date of this Order.

VII. Submissions.

All reports and submissions required in this Order shall be submitted to the l)epartment, via U.S. Mail, or overnight delivery (e.g., Federal Ixpress) as follows:

A. a hardcopy original and an electronic copy in .pdc format on compact disc to:

21

1. Edward Moore, P.J.

Regional Spills l-ngineer Department of Environmental Conservation, Region T'hree 21 South Putt Comers Road New Paltz, New York 12561 Re: Case No. R3-20110124-2, R3-20110124-27-N RD, R3-20110124-27-2, R3- 20110124-27-3

2. Thomas Rudolph, P.E.

Regional Engineer Department of Environmental Conservation, Region Three 100 1lillside Avenue, Suite 1W White Plains, New York 10603-2860; Re: Case No. R3-2(1124-27, R3-201 10124-27-N RI), R3-2t)I 1 0 124-27-2, R3- 20110124-27-3

13. An electronic copy in .pdf format on compact disc to the:

John Parker, Regional Attorney Office of General Counsel Department of Environmental Conservation, Region Three 21 South Putt Corners Road New Paltz, New York 12561 Re: Case No. R3-20110124-27, R3-201101 24-27-N RD, R3-20110124-27-2, R3- 20110124-27-3 C. An electronic copy in .pdf format on compact disc to:

Andrew 0. Guglielmi, lEsq.

Office of General Counsel Department of E.rnvironmental Conservation 625 Broadway, 14th Fhlor Albany, New York 12233-1500 Re: Case No. R3-20110124-27-NRI)

Respondents shall be responsible for the content of any submissions made pursuant to this Order and shall certify in writing to the Department that such submission complies with the requirements set forth in this Order. Submission of any material containing assertions of fact shall be considered an affirmative representation by Respondents of the truth of such assertions. Respondents shall be in violation of this Order if, in the Department's reasonable 22

judgment, any submission is of such poor quality that it does not constitute a good faith effort to comply with the provisions of Lhis Order.

VIII. Review of Submitted Remedial P'lans and Proposals.

A. After review of any remedial plan or proposal required by this Order and its Schedule of Compliance, the Department shall notify Respondent(s), in writing, of its approval or disapproval of the submission, such approval not to be unreasonably withheld. If the Department approves the submission, Respondent(s) shall implement it in accordance with its schedule and terms, as approved. If the Department disapproves the submission, the Department shall provide to Respondent(s) written notice of its disapproval, specifying with reasonable particularity the grounds for disapproval. Within thirty (301) days after Respondent(s) receive written notice of disapproval, RCespondent(s) shall submit a revised submission which responds to each of the l)epartment's specified grounds for disapproval.

After the Department's receipt of Respondent(s)' revised submission, the D)epartment shall notify Respondent(s), in writing, of its approval or disapproval of such revised submission, such approval not to be unreasonably withheld. If the Department approves the revised submission, Respondent(s) shall implement it in accordance with its scheduleand terms, as approved. If the revised submission is not approvable as submitted, the Department, at its option, may disapprove it or may approve it on condition that Respondent(s) accept such reasonable modifications as may be specified by the l)epartment to make it approvable. If the Respondent(s) do not accept such modifications, the revised submission will be disapproved. If the l)epartment disapproves the revised submission, the Respondent(s) shall be in violation of this Order. Upon l)epartment approval, a submission or revised submission shall be- deenLVId incorporated into this Order.

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IX. Inspections.

For the purpose of insuring compliance with this Order, and with related provisions of the CICL and regulations promulgated thereunder, representatives of the Department shall be permitted access to relevant records during reasonable hours to inspect and/or perform such tests which the Department reasonably deems appropriate to determine the status of Respondeni(s)' compliance.

X. Other Approvals.

Respondents shall be obligated to obtain whatever permits, easements, rights of entry, approvals or authorizations may be necessary in order to carry out its obligations under this Order. lExcept as otherwise provided in this Order, this Order shall not relieve the Respondents of the obligation to comply with any other laws, rules or regulations of the State of New York or any other governmental authority which are applicable to Respondents' implementation of the Schedule of Compliance, nor preclude or limit enforcement action as may be authorized by law for violations of such other laws, rules or regulations.

XI. Other Remedies.

(a) Nothing contained in this Order shall be construed as barring, diminishing, adjudicating or in any way affecting (1) any legal, administrative or equitable rights or claimis, actions, suits, causes of action or demands whatsoever that the Department may have against anyone other than Respondents, their parents and affiliates, and each of their officers, directors, employees, agents and successors and assigns (including successors in title); (2) the Department's right to enforce, administratively or at law or in equity, the terms, provisions and conditions of this Order against Respondents, in the event that Respondents shall be in breach of the provisions

. to require pursuant to the provisions of Paragraph VI(C) of this Order that Respondents take such additional measures as may be necessary for the 24

protection of public health or the environment, including interim remedial measures; or (4) the Respondents' rights available pursuant to this Order, the I-nvironmental Conservation Law, or as otherwise provided by law, including the right to challenge any action by the Department, whether by administrative hearing, including 6 NYCRR ["art 622, judicial review, or otherwise, to the extent permitted by law.

(b) This Order shall not be construed to prohibit the Commissioner or the Commissioner's duly authorized representative from exercising any summary abatement powers, either at common law or as granted pursuant to statute or regulation.

X11. Use of Order.

This Order shall not be admitted as evidence of an admission or declaration against interest against either Respondents, their parents and affiliates, and each of their officers, directors, employees, agents and successors and assigns (including successors in title), or the Department in any proceeding other than one to enforce the terms of this Order. Without limiting the generality of the foregoing sentence, neither the matters and events addressed herein, the imposition of the penalty recited herein nor the fact of Respondents' execution of this Order shall be used in any other context as an indication of Respondents' culpability or non-compliance with environmental obligations.

X111. Indemnification Respondents or their successors or assigns shall indemnify and hold harmless the Department, the State of New York, and their representatives and employees for all claims, suits, actions, damages and costs of every name and description arising out of or resulting from the fulfillment or attempted fulfillment of this Order by Respondents or their affiliates,

......... Si.it~*

• tg r ayssignsu.

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XIV. Force Majeure.

Respondents shall not be in default of compliance with this Order to the extent that Respondents may be unable to comply with any provision of this Order because of the action of a national or local government body or court, an act of God, war, strike, riot or catastrophe as to any of which the negligence or willful misconduct on the part of Respondents was not a proximate cause; provided, however, that Respondents shall use their best efforts to comply.

Respondents shall provide written notice to the Department promptly upon obtaining knowledge of such event. In addition, Respondents shall, within twenty-one days Of SUCh event, provide written request to the Department for an appropriate extension or modification to this Order, along with documentation evidencing entitlement to relief herein. Relief under this clause shall not be available to Respondents, with regard to a particular event, if Respondents fail to provide timely notice of such event. The Respondents shall have the burden of proving entitlement to relief under this clause, by preponderance of the evidence.

XV. Modification.

This Order may not be modified except in a writing executed by the DEIC Commissioner or the DlEC Commissioner's authorized rtepresentative and the Respondents.

XVI. Elntire Agreement.

Ihe provisions hereof shall constitute the complete and entire Order betweien Respondents and the Department concerning thematters contained herein. No informal advice, guidance, suggestions or comments by the Department regarding reports, proposals, plans, specifications, schedules or any other writing submitted by Respondents shall be construed as relieving Respondents of their obligations to obtain such formal approvals as may be required 26

XVIl. Binding Effect.

This Order shall be deemed to bind the Respondents and their successors and assigns.

Respondents shall be responsible for ensuring that all work performed under this Order is in compliance with the terms of the Order.

XVIII. Headings.

The section headings set forth in this Order are included for convenience of reference only and shall be disregarded in the construction and interpretation of any of the provisions of this Order.

XIX. Effective Date.

I'his Order on Consent and Administrative Settlement shall not beconLe ffc-tive until it is signed by the Regional Director on behalf of the Commissioner (the "lIffcc-tivt, Date").

27

Dated: New Paltz, New York March ,2012 JOSI'I I J. MARTIENS Comlmissioner l)epartnment of I'nVi ronimenta l C(nsei'vA ion WILLIAM C. JANFiWAY Regional Director, Region 3 Department of Environmental Conservation This Order on Consent and Administrative Settlement has been reviewed and approved by the Regional Attorney as to form.

By:

JOI IN L. PARKER Regional Attorney 28

CONSENT 13Y Rl-.SI'ONl)j7NT Respondent Indian Point 2 hereby consents to the issuance and entry of thiLs Order on C.onsent and Administrative Settlement without further notice, waives its right to a hearing in this matter, and agrees to be bound by the terms, conditions and provisions of this Order. The undersigned represents and affirms that they have the legal authority to bind Respondent(s) to the terms and conditions of this Order on Consent and Administrative Settlement.

Iintergy Nuclear Indian Point 2, IIC lit L. _..... ..... . . .s ACKN OWL.I-A )G M liNT On this/& day of /lnq,?ej , in the year 2012, before me, the undersigned, personally appeared JZ9.-,34. ii-i rLv ....... personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (arc) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies) as shown in the instrument, and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

Notary Public CHRISTI LEMANN Notay Public, Soft of New York R*gAW#01LESO70940 QuLified in Pubnu County~

Camm sin~gtfkuJky .2 29

CONSENT BY RESPONDENT Respondent Indian Point 3 hereby consents to the issuance and entry of this Order on Consent and Administrative Settlement without further notice, waives its right to a hearing in this matter, and agrees to be bound by the terms, conditions and provisions of this Order. The undersigned represents and affirms that they have the legal authority to bind Respondent(s) to the terms and conditions of this Order on Consent and Administrative Settlement.

I.ntergy Nuclear Indian Point 3, I.I.C Tit le .. S\¶'v, L ACKN OWI.I')G M ENT On this ./* day of.. _/* ........ in the year 2012, before me, the undersigned, personally appeared. ..... ... .... personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies) as shown in the instrument, and that by his/her/their signature(s) on the instrument-, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

Notary Public

- CHRISWrINA L'FITMANN Notery Publl, C of Now Yok Coimmft rbmprin JUW* 6.2 LU -

30

SCIIFIUILL 01: (XMPLIANCEL Respondent: Entergy Nuclear Indian Point 2, LLC, F-ntergy Nuclear Indian Point 3, LLC Site or Facility: Indian Point Unit 2, including the Unit 2 #21 main transformer and chemical bulk storage tanks, and Indian Point Unit 3 including chemical bulk storage tanks DEC Case No.: R3-20110124-27, R3-20110124-27-NRD, R3-20110124-27-2, and R3-201101.24-27-3

1. Self-certification and Delivery: All submissions to the l)epartmcnt requir'ed under this Schedule of Compliance shall comply with the requirements of Section VII of the Order, including with respect to self-certification and delivery. Respondent(s) shall submit to 1)R1 within fifteen (15) days of each milestone date set forth in this Order, a signed statenment certifying that the payment or task required was completed by that date, and that it was donio., in the manner required by this Order.

Submission of the required certification shall be considered an affirmative representation by the Respondent of the truth of its contents. Any knowingly false statement made therein shall be punishable pursuant to ISction 210.45 of the Penal Law, and as may be otherwise authorized by law.

Failure to submit a required certification by the due date shall be a violation of this Order, and shall establish a legal presumption that Respondent(s) has failed to comply with that requirement of the Schedule.

2. Remedial Activities and Milestones: Respondent(s) shall timely perform the activities set forth below in a good and workmanlike manner and supply all required labor, equipment and materials at Respondent's own cost and expense:

I

1. PE' ROLF~UN4 (TRANSFC)RM,0-iR Oil,) RI].Lii\SE R-MEDIAL INViSTI'IGAION WORK PLAN A. Within ten (10) days of the l-ffective Date of this Order:

Respondent shall submit to the Department for approval, a Remedial Investigation Work Plan to determine the extent of subsurface (soil and groundwater) petroleum (transformer oil) contamination. Specifically, the Remedial Investigation shall determine the extent of free petroleum (transformer oil) product in/on the water table, and the extent of petroleum (transformer oil) contaminated groundwater in the vicinity of the #21 main transformer location; any petroleum (transformer oil) that may be trapped; and other areas where the release may have impacted the environment, including the area behind the discharge canal wall.

The Remedial Investigation Work Plan shall include sample analyses using EIPA Methods 8260/8270 and total petroleum hydrocarbons testing for all water and soil samples. The Remedial [nvestigation Work Plan shall also include an implementation schedule consistent with terms, requirements, and conditions of this Schedule of Compliance. Once approved by the D)epartment, the terms, requirements, and schedule of the Remedial Investigation Work Plan, duly approved by the Department, shall be an enforceable part of this Order on Consent.

Upon Department approval of the Remedial Investigation Work Plan, Respondent shall implement the Remedial Investigation Work Plan.

R!EMED1AI, INVESI'IGATION RI'PORT B. Within one hundred twenty (120) days of receipt by Respondent of Department approval of the Remedial Investigation Work Plan:

Respondent shall submit to the Department, a Remedial Investigation Report, and shall include recommendations addressing the removal of petroleum (transformer oil) contamination identified during the Remedial Investigation.

REMEDIAL ACTI'ON PLAN C. Within thirty (30) days of receipt by Respondent of any Department comments on the recommendations required pursuant to section I.B. above:

Respondent shall submit to the Department for approval, a Remedial Action Plan to address the identified environmental impacts of the petroleum (transformer oil) release of November 20(10.

[he Remedial Action Plan shall identify cleanup standards and an implementation schedule.

[he terms, requirements, and conditions of the Remedial Action Plan, duly approved by the Department, shall be an enforceable part of this Order on Consent.

It. TRANSFORMER SIFCONI)ARY CONTAINMIENT SYST'IMS SECONDARY CONTAINMINNT SYST'EM EVAIUATION P'LAN:

1. 21 MAIN TRANSFORMER A. Within ten (10) days of the lEffective Date of this Order:

Respondent shall submit to the Department for approval, a Transformer Secondary Containment System Evaluation Plan to evaluate the integTity Of the #21 main transformer secondary containment system ("#21 Main Transformer Evaluation Plan"). "lhe #21 Main Transformer Evaluation Plan shall include hydrostatic testing. If Respondent elects to Use a method other than a hydrostatic test, Respondent's #21 Main Transformer I.,valuation Plan shall be technically supported and shall demonstrate, to the Department's satisfaction, that the secondary containment system is able to collect and contain any potential release from the #21 main transformer. [he terms, requirements, and conditions of the #21 Main Iransformer F.valuation Plan, duly approved by the l)epartment, shall be an enforceable part of this Order on Consent.

SECONDARY CONTAINM1ENT SYSTEM .N(;INEERING PLANS ANI)

SPEICIFICATIONS: #21 MAIN TRANSFORMER B. Within forty-five (45) days of the I-ffective Date of this Order:

Respondent shall submit to the Department for approval, engineering plans and specifications for the secondary containment system (the "#21 Main Transformer Engineering Plans and Specifications"), specifying any work that may be required to ensure that the secondary containment system is capable of containing any petroleum (transformer oil) release from #21 main transformer.

The #21 Main Transformer EFngineering Plans and Specifications for required work shall include:

i. The closure and discontinuance of the use of the stormwater disposal system included in the secondary containment system; ii. Sufficient testing to confirm that the secondary containment system is structurally supported, impermeable, and has sufficient volurme to contain the contents of #21 main transformer and the likely amount of firefighting water that would be released in the event of a fire; and iii. If Respondent will retain the current (original) design of the sc.codllydc' containment system for #21 main transformer then the capability and capacity shall be reviewed to determine whether it meets the current requirements under the Spill Prevention Control and Countermeasure Plan. This analysis shall be included in the #21 Main Transformer Engineering Plans and Specifications.

[he #21 Main Transformer E-ngineering Plans and Specifications shall be certified and stamped

-- y-a-ew--York State 1.ieensed Py-efessionil Engineer. The tcrns =tets, meii~ xnd~ioin.s of the #21 Main Transformer Engineering Plans and Specifications, duly approved by the Department, shall be an enforceable part of this Order on Consent.

3

C. Within thirty (30) days of the Department approval of the #21 Main Transformer Engineering Plans and Specifications:

Respondent shall submit to the Department a copy of the final design for the #21 main transformer secondary containment system.

1). By May 15, 2012:

Respondent shall complete the secondary containment system evaluation and repairs in accordance with the Department approved #21 Main Transformer E.ngineering Plans and Specifications. Respondent shall also submit to the Department a letter of certification, stamped by a New York State Licensed Professional Engineer, that the secondary containment system has been installed or repaired in accordance with the Department approved #21 Main Transformer Engineering Plans and Specifications and an evaluation and certification that the secondary containment system provides adequate secondary containment of petroleum spill events that could occur from the #21 main transformer.

SECONDARY CONTAINMENT SYSTEM ElVALUATION PIAN:

1. 22, #31, AND #32 MAIN TRANSFORMERS Ii. Within six (6) months of the Effective Date of this Order:

Respondent shall submit to the Department for approval, a Transformer Secondary Containment System lEvaluation Plan(s) to evaluate the integrity of the #22, #31 and #32 main transformers secondary containment systems ("#22, #31 and #32 Main Iransforrmers I-vwaluation Plan"). [he #22, #31 and #32 Main Transformers Evaluation Plan shall incltude hydrostatic testing. If Respondent elects to use a method other than a hydrostatic test, Respondent's 1122,

1. 31 and #32 Main Transformers Evaluation Plan shall be technically supported and shall demonstrate, to the l)epartment's satisfaction, that the secondary containment systems are able to collect and contain any potential release from the transformers. The terms, requirements, and conditions of the #22, #31 and #32 Main Transformers Evaluation Plan, duly approved by the Department, shall be an enforceable part of this Order on Consent.

S1iCONDARY CONTAINMENT SYSTEM ENGINEERING PLANS AND SPECIFICATIONS: #22, #31, AND #32 MAIN 'IRANSFORMI l1S F. Within thirty (30) days of Department approval of the #22, #31 and #32 Main Transformers Evaluation Plans:

Respondent shall submit to the Department for approval, engineering plans and specifications for the #22, #31 and #32 main transformers secondary containment systems (the "#22, #31 and

1. 32 Main Transformers Engineering Plans and Specifications"), specifying any work that may be required to ensure that the secondary containment systems are capable of containing any petroleum (transformer oil) release from each transformer.

4

The #22, #31 and #32 Main Transformers Engineering Plans and Specifications for required work shall include:

i. The closure and discontinuance of the use of any stormwater disposal system included in the secondary containment systems; ii. Sufficient testing to confirm that the systems are structurally supported, impermeable, and have sufficient volume to contain the contents of #22, #31 and

1. 32 main transformers and the likely amount of firefighting water that would be released in the event of a fire; and iii. If Respondent will retain the current (original) design of the secondary containment systems for #22, #31 and #32 main transformers then the capability and capacity of each secondary containment system shall be reviewed to ditermine whether it meets the current requirements under the Spill Prevention Control and Countermeasure Plan. This analysis shall be included in the #22,

1. 31 and #32 Main Transformers Engineering Plans and Specifications.

'he #22, #31 and #32 Main Transformers E-ngineering Plans and Specifications shall he certificd and stamped by a New York State Licensed Professional Fingineer. [ihe terms, r1Tquinritnents, and conditions of the #22, #31 and #32 Main Transformers linginntcring Plans and Specifications, duly approved by the Department, shall be anl enforceable part of this Order on Consent.

G. Within thirty (30) days of the Department approval of the #22, #31 and #32 Main Transformers E-ngineering Plans and Specifications:

Respondent shall submit to the Department a copy of the final design for the #22, #31 and #32 main transformers secondary containment systems.

SECONDARY CONTAINMENT SYSTEMS FOR #22, #31 AND #32 MAIN TRANSFI01M.I(

SHAH. BE COMPI.. AND CIERTIFIED BY DCIMBF.R 31, 2012 It. By December 31, 2011 Respondent shall complete the secondary containment systems evaluation and repairs in accordance with the Department approved #22, #31 and #32 Main Transformers lrngintering Plans and Specifications. Respondent shall also submit to the Department a letter of certification, stamped by a New York State licensed Professional -ngineer, that the secondary containment systems have been installed or repaired in accordance with the Department approved #22, #31 and #32 Main Transformers lingineering Plans and Specifications and an evaluation and certification that the secondary containment systems provide adequate secondary containment of petroleum spill events that could occur from the #22, #31 and #32 main transformers.

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111. CII1MICAL BULK ST()RACli A. Within thirty (30) days of the Effective D)ate of this Order:

Respondent shall review Department Chemical Bulk Storage regulations; complcte a compliance review of all registered tanks; and shall develop a checklist of regulations applicable to the Indian Point Nuclear Generating Facility. The checklist shall be developed for the purpose of allowing Respondent to provide annual updates as a part of the Spills Prevention Report update required pursuant to 6 NYCRR Section 598.1(k)(2)(vii) and Annual Inspection required pursuant to 6 NYCRR Section 598.7(c)(2)(v).

13. Within thirty (30) days of the Effective Date of this Order:

Respondent shall conduct inspections of tanks HMST-11 and I IMST-12 pursuant to 6 NYCRR Section 598.7(d), and shall complete any required repairs. Respondent shall submit to the Department the results of the required testing, the inspection reports, and a certificate that such tank fully complies with all applicable laws and regulations.

C. Within thirty (30) days of the Effective Date of this Order:

Respondent shall determine the Expected Useful Life of each tank and associated piping, based upon existing inspection reports or additional inspections, and shall certify that information as a part of the Spill Prevention Report required pursuant to 6 NYCRR Section 598.1(k)(2)(vii),

except Tank 008-2, which has been closed.

1). Within sixty (60) days of the Effective D)ate of this Order:

Respondent shall submit a plan to the Department for approval, to replace Tank 008-2 with another tank which shall include secondary containment meeting the requirements of 6 NYCRR Section 599.9 (the "Tank 008-2 Replacement Plan"). Piping shall not penetrate the secondary containment system and operating valves shall be installed on the piping between the tank and the secondary containment. The Tank 008-2 Replacement Plan shall be certified and stamped by a New York State Licensed Professional Engineer. The terms, requirements, and conditions of the Tank 008-2 Replacement Plan, duly approved by the Department, shall be an enforceable part of this Order on Consent.

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