ML20033C973

Requests Expedited Consideration Be Given to NFS 811006 Application for License Amend.Proposed Amend Would Eliminate Outstanding Licensing Issues Blocking Transfer of Facility to Doe.Certificate of Svc Encl

ML20033C973
Person / Time
Site:	West Valley Demonstration Project
Issue date:	12/02/1981
From:	Edgar G MORGAN, LEWIS & BOCKIUS, NUCLEAR FUEL SERVICES, INC.
To:	Bradford P, Gilinsky V, Palladino N NRC COMMISSION (OCM)
References
NUDOCS 8112040553
Download: ML20033C973 (6)

Text

6 DOCKETED MORGAN, LEWIS & BOCKlUS i

PHI LAD ELPM s A U'3NRC C O U N S E LO R S AT L AW Los ANGELES Mi Am e NEw YORK 18 0 0 M STREET, N.W.

PARIS H An niSeu RG WAS HIN GTON, D.C. 2 o 03 6 P4 34 1m..

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" f CRETA!i?

cIi December 2, 1981 E

The Honorable Nunzio J. Palladino The Honorable John F. Ahearne Chairman Commissioner U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 The Honorable Peter Bradford The Honorable Thomas M. Roberts Commissioner Commissioner U.S. Nuclear Regulatory U.S.NuclearRegulayggl;Q Commisslon Commission h

g Washington, D.C.

20555 Washington, D.C.

05 The Honorable Victor Gilinsky V

-1 Commissioner 6

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U.S. Nuclear Regulatory 9

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Commission

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Washington, D.C.

205S5 Re:

Docket No. 50 0l}y

Dear Commissioners:

Nuclear Fuel Services, Inc. (NFS), co-holder with the New York State Energy Research and Development Authority (the Authority) of License No. CSF-1, submitted an application for amendment of that license to the Nuclear Regulatory Com-mission on October 6, 1981.

(A copy of the application is To date the Conrnission has not responded to the attached.)

application.

Because the proposed amendment would eliminate the outstanding licensing issues blocking transfer of the 3

West Valley facility to the Department of Energy (DOE) and 5

the need for a hearing on the amendment proposed by the

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8112040553 811202~'

PDR ADOCK'03000201 0

PDR

s' MORGAN, LEWIS & BOCKlUS

, Authority (Change No. 31) to License No. CSF-1, NFS requests that the Commission give expeditious consideration to its application.

The NRC issued an amendment (Change No. 31) to License No. CSF-1 on September 30, 1981 without providing the licensee, Nuclear Fuel Services, a prior hearing on the amendment, as required by 10 C.F.R. 52.204.

The amendment, which would allow DOE to assume operational control of the West Valley facility for the duration of the West Valley Demonstration Project, raised issues concerning the scope of DOE authority and NFS's residual responsibility as licensee both during and af ter project completion which NFS felt must be resolved prior to DOE assuming site responsibility.

NFS, therefore, submitted an application en October 6, 1981 for amendment of the license which would resolve the issues in question.

When the Commission failed to act promptly on the proposed amendment, on October 13, 1981, NFS was forced to submit a Request for Hearing and a Motion for an Order Post-poning the Effectiveness of the Amendment (Change No. 31) in order to protect its right to a prior hearing before the NRC.

Additionally, on October 20, 1981, NfS petitioned the United States Court of Appeals for the District of Columbia for review of the NRC order issuing the amendment.

This petition is still pending before the Court.

On November 6, 1981, Com-

MORGAN, LEWIS 5 BOCKlUS

, mission Order CLI-81-29 denied NFS's motion for postponement of effectiveness but did instruct the Chairman of the Atomic Safety and Licensing Board Panel to initiate a proceeding on the request for a hearing.

In order to protect its rights, NFS, in related proceedings sought and obtained a stay of a District Court Order requiring NFS to transfer the West Valley facility to DOE.

During the period of the stay, the license amendment (Change No. 31) is for all practical purposes of no effect.

Should the stay be vacated,however, the present substantial uncertainties regarding NFS's responsibilities as licensee, as well as the issue of the legality of Change No. 31, will again place NFS in an Lapossible dilemaa.

The delay occasioned by the Court stay and the uncertainties connected with DOE assuming control of the facility are all the more unfortunate because they are completely unnecessary.

The license amendment proposed by NFS would eliminate the ambiguities inherent in the September 30 amendment, which were pointed out by NFS in its Request for Hearing.

The proposed amendment provides that NFS's authority and responsibility under License No. CSF-1 would terminate on the date DOE assumes possession and, control of the West Valley facility.

This would eliminate the unresolved difficulties with the September 30 amendment while not altering the responsibilities of either DOE or the Authority under the license.

The Authority is, and will continue, to remain contractually committed to DOE to (a) grant DOE exclusive possession and (b) assume responsibility

MORGAN, LEWIS & BOCKlUS 4-for the site at the end of the project.

Moreover, these obligations are consistent'with the Authority's obligations under its agreements with NFS and the NRC license to assume perpetual responsibility of the West Valley site and facilities.

The NRC Staff informed NFS it would issue an amendment providing for termination of NFS's authorities and responsibilities on transfer of possession of the West Valley facilities to DOE if the Authority consented thereto.

So far the Authority has not given such consent, and the NRC Staff has not acte ' on the amend-ment proposed by NFS.

However, under NRC's posture in this case, such consent is not required.

The September 30 amendment was issued over the express objections of NFS because of the public interest issues involved with promptly starting the West Valley project.

The same justification would support approval of the amendment proposed by NFS.

NFS therefore requests that the Commission give immediate consideration to the proposed amendment submitted on October 6, 1981.

If the amendment is issued, then NFS will withdraw its request for hearing before the NRC and its petition for review before the Court of Appeals, and will cooperate fully in expediting the initiation of the West Valley Project.

Respectfully submitted, Of Counsel:

g Clarence T. Kipps, Jr.

George L. Edgar Miller & Chevalier Thomas A. Schmutz 1700 Pennsylvania Ave., N.W.

Attorneys for Nuclear Washington, D.C.

20006 Fuel Services, Inc.

DATE:

December 2, 1981

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Nuclear Fuel Services, Inc. 6000 Executive Boulevard, Suite 600, Rockville, Maryland = 20852 NFO ^ S~a = =-v r

= = 55i0 Ralph W. Deuster aatsi t'a Octooer 6, 1981 Mr. Jdin G. Davis Director Office of Ntr, lear Material Safeef and Safeguards U. S. Nuclear Regulatory Camu.ssion Washington, D. C. 20555

Dear Mr. Davis:

With this letter, Nuclear Fuel Services, Inc. (NFS) sub:rits to the Com-mission an application for amnd::ent of Licerse No. CSF-1. 'Ihis anend::ent, in conjunction with Amnd::ent 31 issued on Septenber 30, 1981, is required in order that the Depart::ent of Energy (IEE) and the New York State Energy Researd and Developt Authority (NYERDA) may carry out the conditions of Section 2(b) (4) (A) of the West Valley Denonstration Project Act, Pub. L.96-368 (1980).

'Ihis a::endmnt teminates all rights and responsibilities of NFS under License !b. CSF-1 and transfers to NYERDA all residual rights and responsi-bilities of the licersees upon cn:pletion of the West Valley Deronstration Project. All other information required by the Carission for amend: rent of an operating license is contained in the previous sthmissions of the licensees under Docket No. 50-201.

'Ihe requested anend: rent whicd1 ndas a Paragraph 8 to the licerse, is as follcus:

8.

Notwithstanding any other provisiers of t.m license, all rights and resporsibilities of the licensee, Nuclear Fuel Services, Inc. (NFS), under Licerse No. CSF-1 are terminated upon DCE assu: ring exclusive possession and control of the facility. Upon DCE's assu:ption of exclusive possession and control of the facility as provided in Paragraph 7 above, all refences to

'licersee ', ' licensees ', 'licersees under this license, as their respective interests under this license appear', or 'licersees, as their respectim interests under this licerse appear', shall thereafter refer exclusively to the New York State Energy Researcd1 and Develcptent Authority.

I undarstand that NYERDA is prepared to join in thic application in con-nection with a settlenent between NFS and NYERDA of their contractual disputes, provided that any sudi concurrence by NYERDA may be withdrawn, without prejtziice, PU l" O (2 eJ l10l500')]

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J Nuclear Fuel Services, Inc. October 6, 1981 i

l in the event no settlement is reactied, and provided further that the amend-ment is issued sinultaneously with the signing of the settlenent agreenent.

If any additional information is required, please let ne know.

Sincerely, Ralph W. Deuster President 9

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4 UNITED STATES OF AMERICA NUCLEAR REGLATORY COMMISSION In the Matter of

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Docket No. 50-201 NUCLEAR FUEL SERVICES, INC.

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Provisional Operating

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License No. CSF-1 CERTIFICATE OF SERVICE I hereby certify that the foregoing has been served as of this date by personal delivery or first class mail, postage prepaid, to the following:

Nunzio J. Palladino, Chairman Victor Gilinsky, Commissioner U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 Peter Bradford, Commissioner John F. Ahearne, Commissioner U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 Leonard Beckwit, Jr., Esq.

Thomas M. Roberts, Commissioner General Counsel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 Carmine J. Clemente, Esq.

Richard E. Cunningham, III General Counsel Director, Division of Fuel Cycle New York State Energy Research and Material Safety and Development Authority U.S. Nuclear Regulatory Two Rockefeller Plaza Commission Albany, New York 12223 Washington, D.C.

20555 Guy H. Cunningham, III, Esq.

Warren E. Bergholz, Jr., Esq.

Director and Chief Counsel Office of General Counsel Office of the Executive Legal U.S. Department of Energy Director 1000 Independence Avenue, S.W.

U.S. Nuclear Regulatory Washignton, D.C.

20587 Commission Washington, D.C.

20555

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Docketing & Service Section Samuel J. Chilk Office of the Secretary Secretary of the Commission U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 (original and three copies) 4)J omas A.

Schmutz

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Attorney for Nuclear Fuel Services DATED:

December 2, 1981

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