ML18153B513
| ML18153B513 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Surry |
| Issue date: | 09/29/1988 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | VIRGINIA POWER (VIRGINIA ELECTRIC & POWER CO.) |
| Shared Package | |
| ML18153B511 | List: |
| References | |
| NUDOCS 8810100130 | |
| Download: ML18153B513 (5) | |
Text
7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of VIRGINIA ELECTRIC AND POWER COMPANY (Surry Pow~r Station, Units 1 and 2)
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EXEMPTION I.
Docket Nos. 50-280 and 50-281 Virginia Electric and Power Company (the licensee), is the holder of Facility Operating License Nos. DPR-32 and DPR-37, which authorize operation of the Surry Power Station, Units 1 and 2.
Th~ licenses provide, among other things, that it is subject to all rules, regulations, and orders of th~ Commission now or hereafter in effect.
The fdcilities consist of a pressurized water reactors at the li1..'cnsee 1 s sit~ located in Surry, Virginia.
I I.
On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule amending 10 CFR 50.54(w).
The rule increased the amount of.on-site property darnage insurance required to be carried by NRC's power reactor licensees.
The rule also requ1r1=d these licensees to obtain by October 4, 1988 insurance policies that prioritized insurance proceeds for stabilization and decontamination after an e1ccidtrnt and provided for pdyment of proceeds to en independent trustee who would disburse funds for decontamination and cleanup before any other purpose.
Subsequent to publication of the rule, the NRC has been informed by insurers who offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship provisions will not be ~ble to be incorporated into policies by the time required in the rule.
In response to these comments and related petitions for rulemaking,
(---- 8810100130 880929 1
1 PDR ADOCK 05000280
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- the Commission has proposed a revision of 10 CFR 50.54(w)(S)(i) extending the implementdtion schedule for 18 months (53 FR 36338, September 19, 1988).
However, because it is unlikely that this rul~making action will be completed by October 4, 1988, the Commission is issuing a temporary exemption from the requir~ments of 10 CFR 50.54(w)(S)(i) until completion of the pending rulemaking extending the impl~mentation date specified in 10 CFR 50.54(w)(S)(i), but not later than April 1, 1989.
Upon completi~n of such rulemaking, the licensee shall comply with the provisions of such rule.
III.
Pursuant to 10 CFR 50.12, 11The Commission may, upon application by any interested person or upon its own initiativ~, grant ~xemptions from the requirements of the regulations of [10 CFR Part 50], which are *** Authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security.
11 Further, Section 50.12(a)(2)
_provides inter alia, "The Commission will not consider granting an exemption unless special circumstances are present. Special circumstances are present whenever *.* (v) The exemption would provide only temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."
Despite a good faith effort to comply with the provisions of the rule, insurers providing property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the regulation and the exemption provides only temporary relief from the applicable regula*tion.
- As noted by the Corrmission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding thdt delaying for a reasonable time the implementation of the stabilization and decontamination priority and trusteeship provisions of Section 50.54(w) will not a,dversely dffect protection of public health and safety. First, during the period of d~lay, the licensee will still be required to carry $1.06 billion insurance.
This is a substantial amount of coverage that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the prioritization and trusteeship provisions. Second, nearly 75l of the required coverage is-already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance Limited-II policies. Finally, there is only an extre1T1E:ly small probability of a serious dCCident occurring during the exemption period.
Even if a serious accident giving rise to substantial insurance claims were to occur, NRC would be able to take appropriate enforcement action to assure adequate cleanup to protect public health and Sdfety and the environment.
IV.
Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),
that (1) a temporary exemption as described in Section III. is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the conanon defense and security and (2) in this case, specidl circumstances are present as describEfd in Section III. Therefore, the Corrmission hereby grants the following exemption:
Virginia Electric and Power Company is exempt from the requirements of 10 CFR 50.54(w)(S)(i) until the completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(i), but not later than April 1, 1989.
Upon completion of such rulemcking the licensee shall comply with the provisions of such rule.
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Pursuant to 10 CFR 51.32, the Commission hds determined that the granting of this exemption will not result in any significant environmental impact
( 53 FR 38129).
This exemption is effective upon issu1nce.
Dated at Rockville, Maryland this 29th day of September
, 1988.
FOR THE NUCLEAR REGULATORY COMMISSION en
- Var@.i
. ivi s i.cJn of Reactor Pr j cts I/II Office of Nuclear Reac Regulation
Mr. W. September 29, 1988 A copy of these exemptions are being forwarded to the Office of Federal Register for publication.
Sincerely, Original signed by Original signed by Chandu P. Patel, Project Manager Project Directorate II-2 Leon B. Engle, Project Manager Project Directorate II-2 Division of Reactor Projects-I/II Office of Nuclear Reactor Regulation Division of Reactor Projects-I/II Office of Nuclear Reactor Regulation
Enclosures:
- 1. Exemption - Surry
- 2. Exemption - North Anna cc w/enclosures:
See next page DISTRIBUTION Docket File NRC & Local PDRs PDII-2 Rdg.
SVa rga, 14/E/ 4 GLainas, 14/H/3 DMi ller CPatel LEngle OGC (for info. only)
EJordan 3302 MNBB BGrimes 9/A/2 ACRS (10)
Gray File LE.
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r 0 /'}.._"J/88 C/if 1
PM:PDII-2 CPatel:bd 09/23'88 TMurley/JSniezek, 12/G/18 DCrutchfield, 12/G/18 CRossi, 11/E/4 TBarnhart(16)
GPA/PA ARM/LFMB PM:~-2 LEngle 09/l) /88
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