ML17303A369
| ML17303A369 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 03/30/1987 |
| From: | Quintana R KELEHAR & MCLEOD |
| To: | Miraglia F Office of Nuclear Reactor Regulation |
| References | |
| 3515E, TAC-63147, TAC-63148, NUDOCS 8704030033 | |
| Download: ML17303A369 (8) | |
Text
REGULATORY FORMATION DISTRIBUTION S 'M (RIDB)
ACCESSION NBR: 8704030033 DQC. DATE: 87/03/30 NOTARIZED:
NO DOCKET 0 FACIL STN50528 Palo Verde Nuclear Stations Unit ii Arizona Pub li 05000528 STN-50-529 Palo Verde Nuc.lear Stations Unit 2i Arizona Pub 1i 05000529 AUTH. NAME AUTHOR AFFILIATION QUINTANA>R. L, Kelehar 5 McLeod RECIP. NAME RECIPIENT AFFILIATION MIRAGLIA,'.J.
Division of Pressurized Water Reactor Licensing B (post 8
SUBJECT:
Informs that addi amend to 851231 facility leases currently anticipated based on listed reasons re facility sale 5
leasebac k transactions.
Changes include sl ight: reduc tion in rent Sr addition of add) default remedy'.
DISTRIBUTION CODE:
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TITLE: Licensing Submittal:
Application/General Info A dt NOTES: Standardized plant. M. Davis'!RR: 1Cg.
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RUSSELL MODRC WILLIAM B. KCLCHCR MICHACL L KELCHER PATRICK W HURLEY CHARLCS A. PHAR RIB RICHARD 8 COLE ARTHUR D GCACH JOHN M. KULIKOWSKI THOMAS F. KCLCHER PCTER H JOHNSTONE HENRY F. NARVACZ CHARLES L. MOORC ROGCRT H
CLARK BRIAN J O'ROURKE RONALD F. HORN PHIL KRCHGICL CLYDE F. WORTHCN SPENCER RCIO MICHAEL WILE ELIZAGCTH C. WHITCFIELD ROBERT E. CONKLIN REBECCA A HOUSTDN BARBARA ALGIN KATHRYN J. KUHLCN MARK STYI.CS EVAN S. HOBOS PATRICK V. APOOACA RANDOLPH L. HAMGLIN R SCOTT EATON MARGARCT C. DAVIDSON THOMAS C. 6 RIESS PAULA Z. HANSON THOMAS C. GIRD THOMAS H. TOCVS WlLLIAM M. CABCY RICHARD L. ALVIDRCZ KURT WIHL RIKKI L. OUI NTANA HELEN O HILLCDASS CAROL LISA SMITH JUDITH L. OURZO THOMAS J. ZIMGRICK JONATHAN M. DUKC THOM'AS F. GLUEH CR LYNOA LATTA DOUGLAS E. BRYAN W. A. KELEHCR I888 IBTZ A. H. MCLEOD IBOZ IBZB JOHN B. TITTMANN OF COUNSEL TELEI HONK 8<2-6262 ARCA CODE 505 VIA FEDERAL EXPRESS March 30,- 1987 ELE HER Bc McLEQD, P. A.
ATTORNEYS ANO COUNSELORS AT LAW PUBLIC SERVICE BUILDING P. D. DRAWER AA ALQUOUKROUK, NKW MEXICO 87IO3 Director of Nuclear Reactor Regulation Attention:
Mr. Frank J. Miraglia, Director Division of Pressurized Water Reactor Licensing B
U.S. Nuclear Regulatory Commission Washington, D.C.
20555 Re:
Sale and Leaseback Financing Transactions by Public Service Company of New Mexico-NRC Docket Nos.
STN 50-528 and STN 50-529 Gentlemen:
This letter is being written in compliance with para-graph 2.B(6) of License No. NPF-41, which paragraph was added by Amendment No.
3 issued on December 26, 1985 and was amended by Amendment No.
6 issued on June 2,
- 1986, and by Amendment No.
11 issued on December ll, 1986.
Pursuant to such paragraph 2.B(6) the licensees are required to notify the NRC in writing prior to any change in "the terms or conditions of any lease agreements executed as part of this transaction".
As previously reported, three lease transactions relating to PVNGS Unit 1 were closed on December 31, 1985.
Amendment No.
1 to the December 31, 1985 Facility Leases (the "December Facility Leases" ) was reported to the Commission by letter from Charles L. Moore of this firm dated July 14, 1986.
Amendment No.
2 to the December Facility Leases was reported to the Commission by letter from Mr. Moore of this firm dated November 20, 1986.
The purpose of this letter is to report that it is currently anticipated that there will be an additional amendment to the December Facility Leases
("Amendment No. 3H).
The purpose of Amendment No.
3 is to accomplish the following:
r 8704030033 870330 PDR ADOCK 05000528 PDR
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KELEHER 6 McLEOD, R A.
March 30, 1987 Page 2
Effect a slight reduction in rent.
In November
- 1986, when the December Facility Leases were most recently
- amended, the Basic Rent percentage included rent with respect to an investment in the Palo Verde real
- estate, which rent was duplicative of rent already provided for in Section 21 of each of the Facility Leases.
To include in Section
'16 of the December Facility Leases an additional remedy for a lessee default.
The remedy is to conform the December Facility Leases in this regard to the Facility Lease con-
'ummated on August 1, 1986, with respect to,,an undivided interest in Palo Verde
'nit 1 (a copy of whichwas,submitted to the Commission under cover of a letter from Mr. Moore of this firm dated August 6,'986.)
'In connection with such additional remedy, certain minor technical and conforming amendments will be required in Section 16.
In the case of the December Facility Leases in respect of which MFS Leasing Corp.
("MFS") and Burnham Leasing Corporation
("Burnham") are the owner participants, the definitions of "Final Shutdown" and "Event of Loss" are being amended to conform to similar definitions set forth in Facility Leases relating to Unit 2 in respect of which MFS and Burnham are also the owner participants (copies of which Unit 2 Facility Leases were submitted to the Commission under cover of a letter from Mr. Moore of this firm dated September 4, 1986).
In the case of the December Facility Lease in respect of which Chrysler Financial Corporation is the owner participant, the definitions of "Final Shutdown" and "Event of Loss" are being
I ih
KELEHER 6 McLEOD, R A.
March 30, 1987 Page 3
t amended to add thereto certain events constituting events of "Final Shutdown" and "Events of Loss" under (i) the
'ugustl, 1986 Facility Lease referredo ab'ove,and (ii) the Unit 2 Facility Leases referr'ed to above.
C Amendment No.
3 may amend the definition of "Undivided Interest Per'centage" to expressly set forth the applicable percentages for the respective interests in Unit 1 and in common facilities.
Consistent with previous practice, assuming execution as presently contemplated, we plan to file the amendments with the NRC after execution.
call.
If you have any questions, please do not hesitate to Yours very truly, KELEHER 8
McLEOD, P.A.
ByRikki L. Quintana CLM/mu cc:
Edwin J. Reis, Esq.
(Federal Express)
Mr. George W. Knighton (Federal Express)
Arthur C. Gehr, Esq.
(Federal Express)
Timothy M. Toy, Esq.
(Federal Express)
Mr. A. J.
Robison 3515E
(b