ML19326E216

Responds to Requesting Info Re PA Darchangel Request That NRC Expedite Facility Licensing.Addl NRC Effort Resulting from TMI-2 Accident Caused Delays in Licensing. Development of Schedule for Review of Application Underway

ML19326E216
Person / Time
Site:	Midland
Issue date:	07/02/1980
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Sawyer H HOUSE OF REP.
Shared Package
ML19326E217	List: ML19326E216 ML19326E220
References
NUDOCS 8007280523
Download: ML19326E216 (5)

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. - ma s-The Honorable Harold S. Sawyer IHIS DOCUMENT CONTAINS United States House of Representatives POOR QUALITY PAGES iashington, D. C.

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Dear Congressaan Sager:

I as pleased to respond to your note of May 21, 1980 requesting information for your reply to the May 2,1980 letter of your constituent, Mr. Peter A. D' Archangel.

Mr. D'Archansel's letter requests that the NRC expedite the licensing of the Midland plant. Units 1 and 2 Iccated in Midland, Michigan. Mr. D'Archansel is 1

ebviously concerned that our review of the Midland plant has been suspended since the occurrence of the accident at Three Mile Island, Unit 2 (TMI-2) on March 28,1979..The reactors and major reacter systems for Midland and TMI-2 were both provided by the Babcock & Wilcox Company and are qu.ite sistlar in design.

The President has expressed concern about this nation's high dependence upcn oli and has stated that nuclear power is an important contribution to the goal cf achieving enersy sufficiency without excessive dependence upon foreign sources of oil. In response to the Presidential (Kemeny) Cennissicn Report, President Carter, on December 7,1979, called the present Iranian crisis an exasple of the ' clear, start dangers

• of excessive dependence on foreign oil and reaffirmed thg nation's need for nuclear power. The President noted his oppcsition to a moratorium with proper emphasis on safety, stating that

" Nuclear power has a future in the United States - it is an option that we must keep opes". The President also set a six-month target for issuing operat-ing licenses to completed plants. The President also announced that he would reorganize the NRC to emphasize safety and improve management.

The TMI-2 accident has, indeed, had a significant impact upon our present Itcensing efforts. As a result of the TMI-2 accident, the efforts of the staff were first concentrated on evaluating the accident and assessing the remedial measures to be required, i.e., immediate, near-ters and long-ters. In Jely 1979, we issued NUREG-0578, 7 !-2 Lessoas Learned Task Force Status Repcrt and Short-Tern Recommendatic.s". This early guidance by NRC was supplemented by the recommendations contained la the Kameny Commission Report (October 1979) and the Rogovin Report (January 1980). Consistent with the President's posi-tion of Decem6er 7,1979, and to provide further detailed guidance to the nuclear industry, the NRC staff developec its draft dar= ment ta December 1979, NUREE-0660, " Action Plan for Implementing Recommendations of the President's Commission and Other Studies Related to the TMI-2 Accident *. As finally issued, NUREG-0660 aise takes into consideration the Rogovin wort, comments from the Advisory Causittee ce Reactor Safeguards, and many sources of pertinent informa-tion. The Action.Plas represents a mejor ongoing effort on the part of the NRC staff to define and implement.all of the new requirements as a result of the O FFIC E h..........

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i 2-The Menorable Harold S. Sawyer TMI-2 accident. This plan was developed with special cephasis on require-sents for operating reactors. The plan also contains requirements for plants not yet licensed. The plan takes into account the time required to prepare criteris for and to implement specific changes. To the extent practical the Action Plan assigns licensing action priorities censistent with the require-ments for protection of the health and safety of the public.

The Commission, om February 28, 1980, approved authorization for a low power testing license at or below five percent of full pcver for the Sequoyah Muclear Power Plant, subject to the resolution of certain specified Itcense ecnditions. Siatlar licenses have also been issued for Morth Anna, Unit 2 and Sales, Unit 2.

As of March 1979, just prior to the TMI-2 accident, the.WC staff's operating Itcense safety review of the Midland plant indicated that several items needed resolution prior to licensing. One of these items was deemed to be of special significance to the extent that reviews were initiated to determine whether the Construction Permits should be modified, suspended or reycked. The matter in question was quality of the backfill associated with safety related struc-tures. We issued an order om December 6,1979 requiring that the construction pereits be amended before prcceeding with remedial actions intended to correct the backfill deficiencies. The applicant has requested a hearing en this satter and an opportunity for participation in this hearing by other interested par *.ies was recently noticed in the Federal Register and local newspapers.

prior to the TMI-2 accident the NRC granted a petition for a pubile hearing on issuance of operating licenses for these plants. A special prehearing confer-ence was held arV an Atomic Safety and Licensing Board order dated February 26, 1979 established the issues for the hearing. The hearing must await completion of staff's licensing review which is now being reactivated.

In February,1980 Consumers Power Company announced that it was reviewing a revised cost estimate by its architect engineer, Bechtel, ($3.1 billion - up from a previous $1.67 billion estimate) and significant plant delays primarily due to TPI-2 accident related changes and high interest charges. Bechtel's projected fuel load date for Unit 2 is now April,1984, and for Unit 1 is September,1964. The previous fuel load projections were June 1981 for Unit 2 and November 1981 for Unit 1. The applicant intends to continue construction of both trnits (even theogh the terias of its Dow Chanical contract may not be met if the Rechtel estimate is correct). Cow's intentions as a result of the increase in cost of process steam and delay have not been announced. ide set with the appiteant la mid-June 1990 to discuss this matter as part of our scheduling effort. The applicant's preliminary estimates are that improvement in the feel lood schedule for Unit 2 to perisaps as early as inte summer 1982 may be achievable, and that Bechtel's ccst estimate of $3.1 billion agrees with Consumers' own estimate with scheduled taprovenant. The applicant will concleta its schedule med east review maa -rewm f ew r en1+= +a 4+. h 4 OFFICE.

SURNAME e-OATEk.,

..h NRC FO AM 318 916) N ACM C240 D U.5 Gov ERNMENT D AINTING CF CE: 1979 239-369

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l The Honorable Harold S. Sawyer of Directors in July,1980. TC steff estimates of construction schedules will be made late

• this year after the applicant's final estimatas are available.

In sussary, the staff is~ presently developing detailed schedules for the resumption and empletion of the *C's review of the Midland plant. These schedules will incorporate changes resulting frm the lessons learned from the TMI-2 accident, as well as outstanding issues associated with earlier staff reviews and hearings to be held for the plant. To the extent permitted by our resources and ether priorities, we will attempt to achieve a licensing revie.s schedule consistent with the applicant's projecced ccnstruction contple.

tion date.

I trust the above information providas a suitable basis for your reply to Mr. D' Archangel.

Sincarely, ggd)T.jLRaN

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William J. Dircks -

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Acting Executive Director for Operations

Enclosure:

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