ML20029B078

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Requests Revised Decommissioning Funding Plan Due to Changes in Procedures Re Accumulation of Funds for Decommissioning
ML20029B078
Person / Time
Site: Shoreham File:Long Island Lighting Company icon.png
Issue date: 02/26/1991
From: Crutchfield D
Office of Nuclear Reactor Regulation
To: Leonard J
LONG ISLAND LIGHTING CO.
References
NUDOCS 9103050385
Download: ML20029B078 (5)


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'A NUCLE AR REGULATORY COMMl!WlOu li W ASHINGTON, D. C. 20%$

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Februa ry 26, 1991 Docket No. 50-322 Mr. John D. Leonard, Jr.

Vice President Office of Corporate Services and Office of Nuclear Long Island Lighting Company Shoreham Nuclear Power Station P. O. Box 618, North Country Road Wading River, New York 11792

Dear Mr. Leonard:

SUBJECT:

ACCUMULATION Of FUNDS FOR DECOMMISSIONING By letter of December 3, 1990, you were informed that the U.S. Nuclear Rep ie.v..

Comission (NRC) was hveloping an approach to provide for the accumulation of the required funds that will ensure that the objectives of the decommissioning funding requirements are achieved without imposing an undue burden on the licensees who have prematurely terminated oreration of licensed facilities.

Current decomissioning regulations require that the funds necessary to decommission a facility are to be available at the time tnet termination of operations is expected.

These regulations apply both to nuclear facilitiek that operate through their normal lifetimes and to facilities that m&) be shu Jown premature'y, However, the Comission has directed the NRC staff to develop a proposed rule that allows the staff to determine the appropriate collection period for decommissioning funding on a case-by-case basis for individual plents that prematurely cease operations af ter July 27, 1988.

In the case of your f acility, the staff will determine the appropriate collection period and, if appropriate, will issue exemptions from existing regulations.

I Also, the Comission has determined that licensees who intend to dismantle their plants immediately on the basis of DECON must provide assurance that they will have sufficient decommissioning funds to dismantle the facility as proposed (usingamethodasdescribedin10CFR50.75(e))beforethecommencementof decommissioning activities.

Additionally, for licensees who intend to delay completion of decommissioning by including a period of storage or long-term surveillance on the basis of SAFSTOR, the NRC will determine an appropriate funding period for each prematurely shutdown reactor. This funding period will tale into account the particular financial and rate regulatory environment of the individual licensee and will provide sufficient assurance of decommissioning funds to maintain edequate protection of the public health and safety.

However, the NRC has determined that the accumulation of funds beyond the expiration date of the operating license is unacceptable.

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Mr. John D. Leonard 2

february 26, 1991 4

Since the CECON alternative has been selected as the method for decommissioning the Shoreham facilty, you are requested to submit a revised decontnissioning funding plan within 3D days of the date of this letter, using a funding method described in 10 CFR 50.75(e), which provides assurance that sufficient funds will be available to dismontle the f acility before comencement of decommissioning aGivities.

Sincere ly,

Dennis M. Crutchfield, Director Division of Advanced Reactors and Speciel Projects Office of Nuclear Redctor Regulation cc~ See attached pages DISTRIBJTION E C T7~

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Mr. John D. Leonard 2

february 26, 1991 Since the DECON alternative has been selected as the method for decornmissioning the Shoreham f acilty, you are requested to suttmit a revised decomissioning funding plan within 30 days of the date of this letter, using a funding tr,ethod described in 10 CFR 50.75(e), which provides assurance that sufficient funds will be available to dismantle the f acility before conrnencement of decomissioning activities.

Sincerely,

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Dennis M. Crutch e irector Division of Advanced eactors end Special Projects Office of Nuclear Reuctor Regulation cc: See attached pages l

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Mr. John D. Leonard, Jr.

Shorehau Nuclear Power Station Long island Lighting Company Cc:

Victor A. $taffieri, Esq.

MHB Technical Associates General Counsel-1723 Hamilton Avenue Long Island Lighting Company Suite K 175 East Old County Road San Jose, California 95125 Hicksville, New York 11801 Richard M. Kessel W. Taylor Reveley,- !!!,- Esq.

Chairman & Executive Director Hunton & Williams New York State Consumer Protection Post Office Box 1535 Board

--707 East Main Street Room 1725 i

Richmond, Virginia 23212 250 Broadway New York, New York _10007 Mr.- Lawrence Britt Shoreham Nuclear Power Station Jonathan D. Feinberg, Esq.

-Post' Office Box 618 New York State Department Wading River, New York 11792 of Public Service Three Empire State Plaza Mr. L. Calone Albany, New York 12223 Plant Manager

.Shoreham Nuclear Power Station Fabian G. Palomino, Esq.

l Post Office Box 628 Special Counsel to tho Governor Wading River, New York 11792 Executive Chamber - Stat Capitol Albany, New York 12224 Resident-Inspector Shoreham NPS-Martin Bradley Ashare, Esq.

U.S. Nuclear Regulatory Commission Suffolk County Attorney -

L Post Office Box B-H. Lee Dennison Building-

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Rocky; Point, New York - 11778 Veteran's Memorial Highway-Hauppauge, New York 11788 Regional Administrator, Region I U.S. Nuclear Regulatory Commission Robert Abrams, Esq.

475-A11endale Road Attorney General of the State King of Prussia, Pennsylvania 19406 of New York ATTN: Charles Donaldson, Esq.

Ms. Do'nna Ross-New York State-Department of Law New York State Energy Office Consumer Protection Bureau Agency Building 2 120 Broadway

' Empire State Plaza Ord Floor Albany, New York 12223 New York, New York-10271

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Mr. John D. Leonard, Jr.

2-Shoreham Nuclear Power Station Long Island Lighting Company l

cc:

James P. McGranery, Jr., Esq.

Leonard Bickwit Jr Miller & Chevalier,.,Esq.

Dow, Lohnes and Albertson Chartered Suite 500 Metropolitan Square 1255 23rd Street, N.W.

655 Fifteenth Street, N.W.

- Washington, D.C.

20037-1194 Suite 900 Dr. A. David Rossin Resources Conservation L. Hill Organization-New York Power Authority Suite 320 123 Main Street 101 First Street White Plains, New York 10601 Los Altos, California 94022 Commissioner James T. Herariand-David J. McGoff New York Public Service Commission Associate Deputy Assistant 814 Ellicott Building Secretary for Reactor Deployment 295 Main Street U.S. Department of Energy Buff 610, New York 14203 Washington, D.C.

20545 Gerald C. Goldstein, Esq.

Nicholas S. Reynolds Office of General Counsel David A. Rerd:

New YorL Power Authority Winston & !strawn 1633 Brc.tc'way 1400 L Street N.W.

New Yor k, New York 10019 Washington, D.C.

20005 Morton B. Margulies Esq.

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Samuel A. Cherniak Chairmars AtomicSafetyand NYS Department of Law LicensInpBoard Bureau of Consumer U.S. Nuclear Regulatory Comission Frauds and Protection Washington, D.C.

20555 120 Broadway New York, New York 10271 Jerry R. Kline Administrative Judge George A. Ferguson.

Atomic Safety and Licensing Board Administrative Judge U.S. Nuclear Regulatory Comission Atomic Safety and Licensing Board Washington,D.C.

20555 5307-Al Jones Drive Columbia Beach, Maryland 20764 Carl R. Schenker, Jr.

O'Melveny & Myers

-Stanley B. Klimberg, Esq.

555 13th Street, N.W.

Executive Director and Washington, D.C.

20004 General Counsel Long Island Power Authority 200 Garden City Plaza Suite 201~

Garden City, New York 11530 1

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