ML18057A401
| ML18057A401 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 08/22/1990 |
| From: | Brian Holian Office of Nuclear Reactor Regulation |
| To: | Jablon R SPIEGEL & MCDIARMID |
| References | |
| A, NUDOCS 9008290171 | |
| Download: ML18057A401 (4) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 Robett A. Jablon, Esq.
Spiegal & McDiarmid 1350 New York Avenue, N.W *
. Washington, D.C 20005-4798
Dear Mr. Jablon:
August 22, 1990
SUBJECT:
PALISADES PLANT ~ tRANSFER OF PALISADES PLANT OWNERSHIP This. is in res*ponse to your 'request that we conduct an antitrust review of the applfcation to transfer owne.rship. intE:rests in the Palisades Pl.ant to the
_PcLisades Generating Company~.The request ~s based; in part, upon the fact that* the. Corrunissior1 conducts antitrust reviews.of applica,tions of a.11 owners (original *owners as wtll as new owners) of commercial reactors. that receive their licenses pursuant to Secticri 103 and 105c of the Atomic Energy Act, as amended.
See, e.~. Detroit Edison Co. (Enrico Ftrmi Atomic Power Plant, Unit 2), 7 NRC 583 (1978).
We unders~.and your position that ~he. transfer of ownership of the Sec.tion 104b*
PalisadH licer1se to a new owner rahes issues that, if done in connection with a lic~nie issued pursuant to Sect1ori 103 o~ the Act, ~ould b~ subject to an ol1t itrust review a*nd. that because. of the nature of the iristan_t transa.ction.
i.e., the addition of an owner that has ~ct received ari antitrust rev1e~ in connectior1*with this facility,.any license issued in.connection with this
- ameridment should be issued under Sectio~ 103.
We do-not believe that the
. ctlar.gf:" in ownership a.lone p_rovides a basis to warrant the issuance of a new license pursu~nt to Section 103, sine~* Sectior1.102b specifically states,.*
"[A]r1y 1 icense hereafter issued for a utilization *** facility *** the construction *or operation *of.which was licerise.d pursuant to 'Section 104b pr'ior to enactment into law of thii subsection shall be issued under ~ubsection Sectior1 104b." Thus, as the license for the Palisades facility was issued...
pur~uant to Secticn 10.4b of the Act9 this facility. falls into a category that.
Congress de.cidtd was exempt fro~1 the Sectiori 105c a11titrust review cont~n~lated for licenses issued under*Section 103.
- You* have also suggested that changes in' the facility will occur that
- r:e.c:essitate a determiriation_ that this is a new facility which, pursuant to..
Section 102b of the Act~ requires that a ne~ license be issued pursuant to Section 103 of the Act.-
However, the changes in the*facility that you address*
do net warrant the dtterniiriatior1 you *su.ggest.
For example, the replacement of..:steam generators is not a mat.erial alteration to a licensed facility that requires the.issuance of a. construction permiL. See Virginia Electric and*
- Power Co-.-~(-Surry Power_S-tation ~ Units 1 and 2}. DD-79-19. 10 NRC 625. 654-661 1 (1979).
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Mr. Gerald B. Slade Palisade-s Plant cc:
M. I. Miller, Esquire Sidley & Austin 54t~ Floor One First National Plata Chicago, Illinois 60603 Mr. Thomas A.* McNish*, Secretary.
Consumers P~~ier Company 212 West Michigan Avenue Jackson, Michigan 49201 Judd L; Bacon, Esquire Consumers Power Company 212 W~st Mithigan Avenue Jackson, Michigan *49201 Rtgior1al A*cn:iriistrator, Region III U.S. Nuclear Regulatory Commission
. 799 Roosevelt Road
~
~le~ Elly~, Illinois 60137 Jerry Sarno To~nship Suptrvisor Covert To\\l.'nshi p
. 36197. M-140 Highway Covert, Micbiga~ 49043 Off ic~ of tht Governor Room 1 - Capiiol Building Lansing; richig~n 48913.
Mr. Devid*J. Vandewalle *
- Director, Safety and Licensing Pc. l i sades* Pl ant 27780 Blue Star Memorial Hwy.
Covert, ~ithigan 49043
. Res iperit *1r1spector
- c/o lJ.S. NL1clear Regulatory Corr1nission Palis*ades Plant*
27782 Blue Star Memoria 1. Hwy *
.. Covtrt, Mtc.hi.gan-- 49043---*'-_*
Palisades Plant Nuclear Facilitits and Envi~onmental Monitoring Section Office Division of Radiological Health P.O. Box 30035 Lansing, Michigan 48909 Gerald tha~noff, P.C.
Shaw, Pittman, Potts & Trowbridge 2300 N. Street, J~W.
Washington, D~C. 20037 Mr. David L. Brannen
. Vice President
- Palisades Generatirig Plant c/o Bechtel Pown* Corporatior, 15740 Shady Grove Road Gaithersburgt Marylar,_d :20877
The fact that the change in ownership is being planned t_or -tt:ie Palisades *
- facility will not be subject to an antit.rust review.pursuant to Section 105c of the Act, doe~ not mean that the normal operation of the antitrust laws is
.preempted.
The Commission has the authority to revoke or suspend or modify a license in the event that a court finds that a licensee has violated those laws in connection with licensed activities.* See Section 105a of the Act and Ft.
Pierce Utilities Authority v. United States*, 606 i=*. 2d
- 986 (1979).
In light of *the foregoing, the application in connection with the change in ownership of the Palisades facility will not receive an antitrust review.
Should you have additional qu~sti on.s concerning this matter, p 1 ease contact* me at (301) 492-1344.
cc:
See next p*age
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Sinc;erely, Brian Holian; Project.Manager
. Project Directorate III-1 Divisf~n of Reactor Projects - III; IV, V & Special Projects Offi*ce of Nucleat Reactor Regulation.
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Robert* A. Jablon, Esq. The fact that the change in ownership is being planne~ for the Palis~des facility will not be subject to an antitru*st revi.ew pursuant to Section 105c of*the A~t, does not mean that the normal operati6n of the antitrust laws is preempted.
The Commission has the authority to revoke or suspend or modify a license in the event that a court finds that a licensee has violated those laws in ~onnection with licensed activitie~. See Section l05a.of the Act and Ft.
Pierce Utilities Authority v. United States, 606 F.2d 986 (1979).
In light of the foregoing, the application in connection with the change in ownership of the Palisades facility wi,.l not receive an antitrust review.
Should you have additional questions concerning this m~tter, please contact me
. *at (~01) 492-1344.
cc:
See next page DIS.TRIBUTIONJ
.EJORDAN "ACR$(10)
LA/PD3'i:rD S-- -
SMEADOR 8~\\/90 Sincerely, Brian Holian, Project Manager
- Project Directorate III-1 Division of Reactor Projects - III, IV, V & Special Proj~cts Office of Nuclear Reactor Regulation PM/PD3l:ORSP A BHOLIAN
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8/i'l.90 PALISADES OWNERSHIP TRANSFER Ii'
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