ML12143A031

Request for Additional Information for the Review of the South Texas Project, Units 1 and 2, License Renewal Application - Aging Management, Set 19 (TAC Nos. ME4936 and ME4937) Draft RAIs-Set 19-PTLimits-FOCD

ML12143A031
Person / Time
Site:	South Texas
Issue date:	05/22/2012
From:	Daily J License Renewal Projects Branch 1
To:	Rencurrel D South Texas
Daily J
References
TAC ME4936, TAC ME4937
Download: ML12143A031 (5)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 May 22,2012 Mr. D. W. Rencurrel Sr. Vice President, Technical Support and Oversight STP Nuclear Operating Company P.O. Box 289 Wadsworth, TX 77483

SUBJECT:

REQUESTS FOR ADDITIONAL INFORMATION FOR THE REVIEW OF THE SOUTH TEXAS PROJECT, UNITS 1 AND 2, LICENSE RENEWAL APPLICATION -AGING MANAGEMENT, SET 19 (TAC NOS. ME4936 AND ME4937)

Dear Mr. Rencurrel:

By letter dated October 25, 2010, STP Nuclear Operating Company (STPNOC or the applicant) submitted an application pursuant to Title 10 of the Code of Federal Regulations, Part 54, to renew operating licenses NPF-76 and NPF-80 for South Texas Project, Units 1 and 2, for review by the U.S. Nuclear Regulatory Commission (NRC or the staff). The staff is reviewing the information contained in the license renewal application and has identified, in the enclosure, areas where additional information is needed to complete the review.

These requests for additional information were discussed with Arden Aldridge, and a mutually agreeable date for the response is within 30 days from the date of this letter. If you have any questions, please contact me at 301-415-3873 or bye-mail at john.daily@nrc.gov.

Sincerely, J:h!:.~Y~;jManager Projects Branch 1 Division of License Renewal Office of Nuclear Reactor Regulation Docket Nos. 50-498 and 50-499

Enclosure:

As stated cc w/encl: Listserv

SOUTH TEXAS PROJECT, UNITS 1 AND 2, REQUEST FOR ADDITIONAL INFORMATION AGING MANAGEMENT, SET 19 (TAC NOS. ME4936 AND ME4937)

Foreign Ownership or Control (01.3)

RAI1.1.4-2

Background:

In its December 21, 2010, response to the U.S. Nuclear Regulatory Commission (NRC or Commission) staff's request for additional information issued on December 15, 2010, South Texas Project Nuclear Operating Company (STPNOC), provided information regarding how it plans to mitigate foreign control or domination over activities licensed by the NRC, including, but not limited to, matters relating to nuclear safety, security, and responsibility for special nuclear material in order for the NRC staff to determine if the aforementioned statute and regulatory requirements have been met. On December 9, 2011, NRG Energy Inc. (NRG) filed a Schedule 13G with the U.S. Securities and Exchange Commission (SEC) indicating an 11 percent ownership interest in NRG by Orbis Management Ltd. and Orbis Asset Management Ltd., both of which are in Bermuda entities. In addition, the NRC staff has identified that the Chief Risk Officer of NRG is a citizen of Canada. Based on NRG's Annual Reports filed with the SEC, the responsibilities of the Chief Risk Officer include oversight of certain financial functions.

Issue:

The Commission's regulations under Title 10 of the Code of Federal Regulations (10 CFR)

Section 54.17(b) states that:

Any person who is a citizen, national, or agent of a foreign country, or any corporation, or other entity which the Commission knows or has reason to know is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government, is ineligible to apply for and obtain a renewed license.

Request:

To complete its review, the staff requires the following additional information:

a) Describe the type of shares (e.g., common or preferred stock) and shareholder rights of the shares of NRG that Orbis Management Ltd. and Orbis Asset Management Ltd. own as a result of the December 9, 2011, Schedule 13G filing with the SEC. In addition, state what rights Orbis Management Ltd., and Orbis Asset Management Ltd. will have to participate in matters affecting the management or operation of the STPNOC, including, but not limited to, the right to nominate any Director(s) to STPNOC's Board of Directors.

b) State whether there are any procedures in place to assure that Orbis Management Ltd.

and/or Orbis Asset Management Ltd. shareholder rights in NRG, or any foreign entity or any entity that is owned, controlled, or dominated, directly or indirectly, by a foreign entity, does not result in their participation in decisions concerning nuclear safety or security; obtaining responsibility for special nuclear material; or gaining access to restricted data. If so, provide a list of those procedures.

ENCLOSURE

-2 c) State whether there are any unanimous consent requirements for decisions made by the Board of Directors and whether Orbis Management Ltd. and/or Orbis Asset Management Ltd. will have any right to participate in unanimous decisions. If so, provide a list of their rights.

d) Describe the legal, contractual or financial arrangements, if any, between STPNOC, the three co-owners of STP Units 1 and 2 (the City of Austin, CPS Energy, and NRG South Texas, LP), Orbis Management Ltd., and Orbis Asset Management Ltd., or any foreign entity or any entity that is owned, controlled, or dominated, directly or indirectly, by a foreign entity.

e) Describe the Chief Risk Officer's roles, responsibilities, and authority over STP Units 1 and 2 regarding NRC activities, specifically as they relate to nuclear safety, security, reliability, or special nuclear material. In addition, state whether there are any procedures in place to assure that non-U.S. citizen Directors or Officers will not participate in decisions concerning nuclear safety or security; obtaining responsibility for special nuclear material; or gaining access to restricted data. If so, provide a list of those procedures.

Letter to D. W. Rencurrel from John W. Daily dated May 22, 2012

SUBJECT:

REQUESTS FOR ADDITIONAL INFORMATION FOR THE REVIEW OF THE SOUTH TEXAS PROJECT, UNITS 1 AND 2, LICENSE RENEWAL APPLICATION -AGING MANAGEMENT, SET 19 (TAC NOS. ME4936 AND ME4937)

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