ML17303A376

Anticipates That Addl Amends Will Be Added to Lease Transactions,Including Chase Aug Facility Lease & Mfs Facility Lease.Chase Aug Facility Amended to Conform Corresponding Provision of Chase Dec Facility Leases

ML17303A376
Person / Time
Site:	Palo Verde
Issue date:	04/03/1987
From:	Quintana R ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR, KELEHAR & MCLEOD
To:	Miraglia F Office of Nuclear Reactor Regulation
References
TAC-63147, TAC-63148, NUDOCS 8704070328
Download: ML17303A376 (8)

Text

ACCESSION NBR'8704070328 DOG ~ DATE! 87/Ort/03 NOTARIZKO -NO-, DOCKET" ¹ FACIL: STN 50 528 Palo Verde Nuc'lear btetionr Unit<< lr Ar izone Publ 05000528 STN 50-529 Palo Verde Nuclear Stationi Uni t 2'r Ar izone Publ

~ 05000529 AUTH ~ NAME", AUTHOR AFFILIATION QUINTANAiR ~ LE Kelehar tt Mcl.eod QUINTANA,R~ L ~ Ari zone Nucl ear Power Proj ect (formerl y Ar'i zona Public Ser v RECIP NAME)

~ RECIPlKNT AFFILIATION MIRAGLIAiF.J. Division of Pressurized Water Reactor" Licensing B (post 8

SUBJECT:

Anticipates "that addi amends will be added to lease transectionsrincluding Chase Aug facility lease' MFS facility lease, Chase Aug facility amended to conform<

corresponding provision of Chase Dec facility leases.

DISTRIBUTION COOK! B005D COPIES'ECEIVEDgLTR /, ENCL

' SIZE:

TITLE: Licensing Submittal: Application/Genei el Info Amdt NOTES!Standardized plant ~ MD Davis'rNRR'Cy ~ 05000528

.Standardized plant" ~ MD DavisrNRR: 1Cy ~ 05000529 RECIPIENT COPIES RECIPIENT ID CODE/NAMEl LTTR ENCL ID CODE/NAME- LTTR" ENCL

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1 INTERNAL; ACRS 3 -3 AOM/LFMB 0 AEOD/DOA 1 1 NRR/Dl PQ/HFB 1 li NRR/ PQ/QAB 1 1 OGC/HDS1 1 1 FIL 01,, 1 1 1 1 KXTFRNAI.; LPDR 03( 1 1 NRC PDR 02' 1 NSIC 06 1 NOTeS:.

TOTAL NUMBER'F. COPIES REQUIRED: LTTR 19 ENCL 18

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ELEHER Gc McLEODp P.'.

ATTORNEYS AND, COUNSELORS AT LAW RUSSCLL MOORE KATHRYN J. KUHLCN PUGLIC SERVICE BUILDING W. A. KCLCHCR WILLIAM G. KCLEHCR MARK STYLES MICHAEL L. KCLEHCR EVAN S, HOODS P. OgORAWCR AA Ieee-ISTZ PATRICK W. HURLEY PATRICK V. APODACA CHAR LCS A. PHARRIS L. HAMSLIN

'ANDOLPH ALBUOUEROUE NEW MEXICO 67IO3 A. H. McLEDD RICHARD G COLE P. SCOTT LATON ARTHUR O. S EACH MARGARET C. DAVIDSON l902 l97 6 JOHN M KULIKOWSKI THOMAS E. GRIESS THOMAS F. KELEHER PAULA 2 HANSON JOHN G. TITTMANN PETCR H. JOHNSTDNC THOMAS C. GIRD HFNRY F. NARVAEZ THOMAS H TOCVS CHARLES L. MOORC WILLIAM M. CASCY RDSCRT H CLARK RICHARD L. ALVIDREZ BRIAN J. O'ROURKE KURT WIHL TCLCPHONC 842-6262 RONALD F. HORN RIKKI L. OUI NTANA PHIL KRCHSICL HELEN G. HILLCGASS ARCA CODE 505 CLYO E F. WO R TH EN CAROL LISA SMITH SPENCER RCIO JUDITH L. DURZO MICHAEL WILE THOMAS J ZIMGRICK ELIZAGETH E. WHITCFIELO JDNATHAN M. DUKE ROGCRT C. CONKLIN THON'AS F. GLUEHCR REGCCCA A HDUSTON LYNOA LATTA VIA FEDERAL EKPRESS SARGARA ALGIN DOUGLAS C. GRYAN April 3, 1987 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 delivered in compliance with (1) paragraph 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.

ll issued on December ll, 1986, and (2) paragraph 2.B(6) of License No. NPF-51, which paragraph was added by Amendment No. 2 issued on August 12, 1986, and was amended by Amendment No. 6 issued on December 11, 1986. Pursuant to each such paragraph 2.B(6), the licensees are required to notify the Commission 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 in respect of which Chase Manhattan Realty Leasing Corporation (GChase") is the owner participant were closed on August 1, 1986 (Unit 1 transaction) and December 17, 1986 (Unit 1 transaction and Unit 2 transaction), respectively. Five lease transactions relating to PVNGS Unit 2 were consummated on August 18, 1986.

MFS Leasing Corp. ("MFS") is the owner participant in respect of one of the August 18, 1986 transactions. Amendment No. 1 to the 8704070328 870403 i PDR ,ADOCK 05000528!

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7 KELEHER 6 McLEOD, R A.

Apr Page il 3, 2

1987 Chase Facility Lease for the August 1, 1986 transaction (the "Chase August Facility Lease" ) and Amendment No. 1 to the MFS Facility Lease for its August 18, 1986 transaction (the "MFS Facility Lease" ) were reported to the Commission by letter from Charles L. Moore of this firm dated November 20, 1986. Amend-ment No. 2 to the Chase August Facility Lease was reported to the Commission by letter from Mr. Moore of this firm dated December ll, 1986.

The purpose of this letter is to report that it is cur-rently anticipated that there will be an additional amendment to each of the Chase Facility Leases, including the Chase August Facility Lease, and to the MFS Facility Lease. The purpose of these Amendments is to accomplish the following:

In the'ase of the Chase August Facility Lease, Section 5(a) is being amended to conform to the corresponding provision of the Chase Facility Leases for the December 17, 1986 transactions (the "Chase December Facility Leases" ).

In the case of the Chase August Facility Lease, the definition of "Acceptable Change" is being amended to conform to the definition of "Acceptable Change" in the Chase December Facility Leases (as amended to clarify a provision thereof, as noted below).

In the case of all the Chase Facility Leases, a provision regarding the remain-ing "Economic Useful Life" of the appli-cable Unit at the end of the lease term is being included in Section 8 thereof.

Such provision conforms to a correspond-ing provision in each of the Facility Leases with respect to Unit 2 consum-mated on August 18, 1986 (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 connection with such provision, certain technical and conforming amendments will be required

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KELEHER 6 McLEOD, R A.

April 3, 1987 Page 3 in Sections 15 and 16 and certain addi-tional definitions will be added.

In the case of the Chase December Facil-ity Leases, the definition of "Acceptable Change" is being amended to clarify a provision thereof consistent with the original understanding of the parties.

In the case of the MFS Facility Lease, the definition of "Change in Tax Law" is being amended to delete references therein to the One Hundreth Congress.

Consistent with previous practice, assuming execution as presently contemplated, we plan to file the amendments with the Commission after execution.

If you have any questions, please do not hesitate to call.

Yours very truly, KELEHER 6 McLEOD, P.A.

By Rikki L. Quintana RLQ/st cc: Edwin J. Reis, Esq. (Federal Express)

Mr. George W. Knighton (Federal Expres's)

Arthur C. Gehr, Esq.

Timothy M. Toy, Esq.

Mr. A. J. Robison 3889E

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