ML17306B103

Responds to on Behalf of First Natl Bank of Boston,Inquiring About Bank Intentions Re Applying for NRC License W/Respect to PVNGS Units 2 & 3

ML17306B103
Person / Time
Site:	Palo Verde
Issue date:	10/29/1992
From:	Allen R CRAVATH, SWAINE & MOORE
To:	Murley T Office of Nuclear Reactor Regulation
References
NUDOCS 9211100249
Download: ML17306B103 (6)

Text

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- REGULAT AY INFORMATION DISTRIBUTIO~~ STEM (RIDS)

ACCESSION NBR:9211100249 DOC.DATE: 92/10/29 NOTARIZED: NO DOCKET FALIL:STN-50-529 Palo Verde Nuclear Station, Unit 2, Arizona Publi 05000529 STN-50-530 Palo Verde Nuclear Station, Unit 3, Arizona Publi 05000530 AUTH.NAME AUTHOR AFFILIATION ALLEN,R.M.

RECIP.NAME RECIPIENT AFFILIATION MURLEY,T.E.

Office of Nuclear Reactor Regulation, Director (Post 870411

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SUBJECT:

Responds to 921020 ltr on behalf of First Natl Bank of Boston, inquiring about Bank intentions re applying for NRC I

license w/respect to PVNGS Units 2

a 3.

D DISTRIBUTION CODE:

Y002D COPIES RECEIVED:LTR Q ENCL C SIZE'ITLE:

Distribution for Atypical 50 Dkt Material S

NOTES:Standardized plant.

Standardized plant.

RECIPIENT ID CODE/NAME PD5 LA TRAMMELLPC COPIES'TTR ENCL RECIPIENT ID CODE/NAME PD5 PD MURLEY,T.E, COPIES LTTR ENCL INTERNAL'G~S REG FILE EXTERNAL: NRC PDR 01 OGC/HDS1 RGN5 NSIC NOTE TO ALL "RIDS RECIPIENTS:

PLEASE HELP US TO REDUCE WASTE! CONTACT THE DOCUMENT CONTROL DESK.

ROOM Pl-37 (EXT. 504-2065) TO ELIMINATEYOUR NAME FROM DISTRIBUTION LISTS FOR DOCUMENTS YOU DON'T NEED!

O TOTAL NUMBER OF COPIES REQUIRED:

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~g-8 3D October 29, 1992 El Paso Electric Com an

Dear Mr. Murley:

I am responding on behalf of The First National Bank of Boston to your letter of October 20, 1992, to" Charles K. Gifford of the Bank, inquiring about the Bank's intentions regarding applying for an NRC license with

'espect to PVNGS Units 2 and 3.

The Bank acts solely as owner trustee under separate trust agreements regarding PVNGS Units 2 and 3 and not in its individual capacity.

As you know, the Bank as owner trustee has taken the position that El Paso Electric Company may not lawfully reject the leases relating to PVNGS Units 2 and 3.

Furthermore, under the applicable documents, all responsibility regarding the NRC licenses and the transfer thereof is unequivocally placed on El Paso

Electric, as understood at the time of the amendments to those licenses effected in 1986 and 1987 and subsumed in those amendments.

Therefore, the Bank as owner trustee will cooperate with the NRC regarding the licensing problem, including supporting the NRC's efforts to intervene in the bankruptcy proceeding, but believes it is not required to take any other action regarding the NRC licenses.

I think it would be useful if you would inquire of El Paso Electric Company as to why it appears to be attempting to ignore the Atomic Energy Act and the terms of I

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the NRC licenses through what it apparently believes is the overriding power of the Bankruptcy Code.

Very truly yours, g~Q Ik LQ4 Richard M. Allen Thomas E. Murley, Director Office of Nuclear Reactor Regulation Nuclear Regulatory Commission Washington, DC 20555 227a Copies to First National Bank of Boston 100 Federal Street

Boston, MA 02110 Attention of Gary Spress, Esq.

General Counsel Arizona Public Service Co.

PO Box 53999

Phoenix, AZ 85072-3999 Attention of William F.

Conway Akin, Gump, Strauss, Hauer 6 Feld El Paso Electric Company, Suite 400 1333 New Hampshire Ave.,

NW Washington, DC 20036 Attention of Roy P. Lessy, Jr.,

Esq.

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