ML20035H593

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Informs Commission That EDO Intends to Publish Proposed Rule 10CFR 50.54(bb), Notification of Spent Fuel Mgt & Funding Plans by Licensees of Prematurely Shut Down Power Reactors
ML20035H593
Person / Time
Issue date: 05/03/1993
From: Taylor J
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
FRN-58FR34947, RULE-PR-50 AE46-1-003, AE46-1-3, SECY-93-117, NUDOCS 9305060048
Download: ML20035H593 (19)


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-RULEMAKING ISSUE May 3, m 3

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(NEGATIVE CONSENT)

FOR:

The Commissioners FROM:

James M.

Taylor Executive Director for Operations

SUBJECT:

PROPOSED RULE, 10 CFR 50.54(bb), " NOTIFICATION OF SPENT FUEL MANAGEMENT AND FUNDING PLANS BY I.ICENSEES OF PREMATURELY SHUT DOWN POWER REACTORS" PURPOSE:

To inform the Commission that the Executive Director for Operations (EDO) intends to publish a proposed rule amending the requirements contained in 10 CFR 50.54 (bb) on the timing of notification to the NRC of spent fuel management and funding plans by licensees of those nuclear power reactors that have been shut down before the expected end of their operating lives.

SUMMARY

If adopted, the proposed rule would amend 10 CFR 50.54(bb) to clarify the timing of notification to the NRC of spent fuel management and funding plans by licensees of those nuclear power reactors that have been shut down prematurely.

The current rule requires a licensee to submit such notification no later than

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5 years before the operating license expires, regardless of the operating status of the plant.

The proposed rule would require that a licensee submit such notification either within 2 years after permanently ceasing operation of its licensed power reactor or no later than 5 years before the reactor operating license expires, whichever event occurs first.

As indicated in my memorandum to_the Chairman dated September 14, 1992, this rule has been developed to advance the timing of notification of plans for funding assurance for spent fuel management and storage costs for licensees that shut down their reactor facilities 50032

Contact:

Robert Wood, NRR 504-1255 NOTE: TO BE MADE PUBLICLY AVAILABLE WHEN THE FINAL SRM IS MADE AVAILABLE.

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prematurely.

Also, the staff will consider-the inclusion'of

-spent fuel costs as part of decommissioning costs when its

-information base on spent fuel costs is-fully developed.

At that time, we will consider recommending inclusion of the provisions of 10 CFR 50. 54 (bb) in 10 CFR Sections 50.75 and 50.82.

CATEGORY:

This is a negative consent item.

5 DISCUSSION:

The Commission's regulations in 10 CFR 50.82(a) provide that the licensees of all power reactors that permanently cease operation after July 27, 1988, including those that shut down prematurely, must apply to the NRC to decommission their facilities within 2 years after permanently ceasing operations.

Further, 10 CFR

50. 82 (b) (1) (iii) indicates that the proposed decommissioning plan submitted by the' licensee when applying to decommission should consider factors such as the " unavailability of waste disposal capacity and other site specific factors affecting the licensee's-capability to carry out decommissioning safely..."

l The Commission. requires that each licensee submit its i

decommissioning plans in a timely manner after permanently-l ceasing operations.

The NRC's regulations recognize that the ability of a licensee to plan properly.and safely for decommissioning depends on a licensee's ability to manage and i

dispose of its spent fuel.

Therefore, the' timing of actions required in 10 CFR 50.54 (bb) for managing and storing spent fuel should be consistent with the decommissioning timing requirements.

in 10 CFR 50.82.

The intent of 10 CFR 50.54 (bb) is to provide for plans fpr_ the orderly management of spent fuel by the time the reactor is permanently shut down.

When the NRC prepared

50. 54 (bb), premature reactor shutdown was not deemed to be very likely, and the U.S. Department of Energy (DOE) had scheduled to begin operating a permanent repository in 1998.

However, the number of reactors that have been shut down prematurely has increased over earlier expectations.

DOE has delayed developing a permanent repository, which increases the number of' reactors that will likely need to store spent fuel on site.

Therefore, the staff proposes to amend 10 CFR 50.54(bb) to require a power reactor-licensee to notify the NRC of the licensee's program to manage and provide funding for management of the irradiated fuel at'the reactor either within 2 years after permanently ceasing operation of.the reactor or no later than 5 years before'the reactor operating license expires,'whichever occurs first.

The' staff chose a term of 2 years following permanent cessation of operations to be consistent with-the provisions in.10 CFR 50.82(a) for submittal of a decommissioning plan.. The staff also proposes to keep in 10 CFR 50'.54 (bb) a term

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of 5 years prior to expiration of the operating license for a plant that does not shut down prematurely.

This maintains consistency with the timing provision of 10 CFR 50.75(f) for submittal of a preliminary decommissioning plan.

Additionally, pursuant to 10 CFR 50.75, costs of spent fuel-removal and disposal are not included in the decommissioning cost estimates.

This proposed rule is consistent with that objective.

The licensee will need to plan to manage spent fuel _once its plant permanently ceases operation so as to comply with the NRC's decommissioning regulations in 10 CFR 50.82.

Therefore, the conforming changes in 10 CFR 50.54(bb) would not represent any additional requirements.

Rather, these changes are administrative because they clarify the timing of submissions of spent fuel management and funding plans for those licensees whose power reactors are shut down prematurely.

RECOMMENDATION:

That the Commission note:

1.

The EDO plans to sign the proposed rule revising 10 CFR

50. 54 (bb) as stated in the draft Federal Reaister notice (Enclosure 1) in 10 working days from the date of this paper unless otherwise instructed by the Commission.

2.

In 10 working days from the date of this paper, unless directed otherwise by the Commission, the EDO will certify that this proposed rule will not have a significant economic effect on a substantial number of small entities in accordance with the Reaulatory Flexibility Act of 1980, 5-U.S.C. Section 605(b).

3.

The Chief Counsel of Advocacy of the Sma)1 Business Administration will be informed of.the certification and the reasons for it as required by the Reaulatory Flexibility Act.

4.

The staff has prepared an Environmental Assessment as required by the National Environmental Policy Act of 1969, as amended, and, based on that assessment, has determined that this proposed rule will not be a major Federal-action significantly affecting the quality of the human environment and, therefore, that the preparation of an environmental impact statement is not required.

The Environmental Assessment and Finding of No Significant Impact will be published'in the Federal Recister as-part of'the proposed rule.

In the assessment, the staff concludes.that modifying the timing of the submission of spent fuel management and fundihg plans for prematurely shutdown power reactors will not adversely affect the health.and safety of the public or the quality of the environment.


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5.

This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C.

3501, e_t. sea.).

6.

The staff prepared a regulatory analysis and incorporated it into the draft Federal Reaister not. ice.

7.

The proposed rule will not constitute a backfit under 10 CFR 50.109; therefore, a backfit analysis is not required.

8.

The staff will inform the appropriate Congressional committees.

9.

The staff will issue a public announcement.

10.

The office of the General Counsel has reviewed the proposed rule and has no legal objection.

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RC a.es'M. Tafflor

.ecutive Director for Operations

Enclosure:

Draft Federal Reaister Notice SECY NOTE:

In the absence of instructions to the contrary, SECY will notify the staff on Tuesday, May 18, 1993 that the Commission, by negative consent, assents to the action proposed in this paper.

DISTRIBUTION:

Commissioners OGC OCAA 01G PA OCA OPP DCD Central Files EDO SECY t

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W NUCLEAR REGULATORY COMMISSION 10 CFR PART 50 RIN 3150-AE46 Notification of Spent Fuel Management and Funding Plans By Licensees of Prematurely Shut Down Power Reactors AGENCY:

Nuclear Regulatory Commission.

ACTION:

Proposed Rule.

SUMMARY

The U.S. Nuclear Regulatory Commission (NRC) proposes to amend its regulations to clarify the timing of notification to the NRC of spent fuel management and funding plans by licensees of those nuclear power reactors that have been shut down before the expected end of their operating lives.

The proposed rule, if adopted, would require that a licensee submit such notification either within 2 years after permanently ceasing operation of its licensed power reactor or no later than 5 years before the reactor operating license expires, whichever event occurs first.

DATE:

Comment period expires (75 days after date of publication in the Federal Reaister)._ Comments received after this date will t

' be considered if it is practical to do so, but the Commission is able to assure consideration only for comments received on or before this date.

2 ADDRESSES:

Mail written comments to:

Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention:

Docketing and Service Branch.

Deliver comments to:

11555 Rockville Pike, Rockville, Maryland, between 7:45 am and 4:15 pm Federal workdays.

FOR FURTHER INFORMATION CONTACT:

Robert Wood, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, D.C.

20555, telephone (301) 504-1255.

1 SUPPLEMENTARY INFORMATION:

Bactground On August 31, 1984, the NRC published a final rule,

" Requirements for Licensee Actions Regarding the Disposition of Spent Fuel Upon Expiration of Reactor Operating Licensees"

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(49 FR 34689).

In part, this rule added to the NRC's regulation a new paragraph -- 10 CFR 50.54(bb) -- which required licensees of nuclear power reactors to submit for NRC review and' approval, no later than 5 years before the reactor operating license expires, their plans for managing spent fuel at their site until title to the spent fuel is transferred to the Department of Energy.(DOE).

These plans are to include plans'for funding of spent fuel management before transfer to DOE.

- i In the preamble to the 1984 final rule, the Commission responded to comments on the proposed rule by stating, Premature shutdown or termination of a reactor's license which results:in an unanticipated need for interim storage or disposal arrangements is not expected to be a generic problem.

The Commission will consider the consequences of premature termination of operation, should such an event occur, on a case-by-cas'e' basis.

Even if a reactor shuts down prematurely, it will still be required to comply with license requirements (49 FR 34689, at p. 34690).

Similarly, in the final decommissioning rule (53 FR 24018, June 27, 1988), the Commission acknowledged that, in certain instances, reactors might be permanently shut down before completing the full term of their operating lives.

However, because the Commission determined that such instances would be

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infrequent, it did not explicitly include in the rule remedies for premature shutdown.

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Subsequent to the publication of both the final spent fuel disposition and decommissioning rules, 6 power reactor facilities have been shut down prematurely:

the Fort St. Vrain Nuclear Generating Station, the Rancho Seco Nuclear Generating Station, Unit 1 of the San Onofre Nuclear Station, the Shoreham Nuclear

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Power Station, the Trojan Nuclear Station and the Yankee Nuclear Power Station.

Unit 2 of the Three Mile Island Nuclear Station also effectively permanently ceased operation after suffering its March 1979 accident although the licensee never formally announced its shutdown.

The Commission's regulations in 10 CFR 50.82(a) provide that all power reactors that permanently cease operation after July 27, 1988, including those that shut down prematurely, must apply to the NRC to decommission their facilities within 2 years following permanent cessation of operations.

Further, 10 CFR

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50. 82 (b) (1) (iii) indicates that the proposed decommissioning plan submitted by the licensee when applying to decommission should consider factors such as the " unavailability of waste disposal capacity and other site specific factors affecting the licensee's capability to carry out decommissioning safely..."

Discussion The Commission requires that each licensee submit its decommissioning plans in a timely manner after permanently ceasing operations.

The NRC's regulations recognize that the ability of a licensee to plan properly and safely for decommissioning depends on a licensee's ability to manage and dispose of its spent fuel.

Therefore, the timing of actions required in 10 CFR 50.54 (bb) for managing and storing spent fuel t

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5 should be consistent with the decommissioning timing requirements in 10 CFR 50.82.

The intent of 10 CFR 50.54(bb) is to provide for plans for the orderly management of spent fuel by the time the reactor is permanently shut down.

When the NRC developed S50. 54 (bb), premature reactor shutdown was not deemed to be very kikelyand, in any case, DOE had scheduled to begin operating a permanent repository in 1998.

However, the number of reactors that have been shut down prematurely has increased over earlier expectations.

Also, DOE has delayed development of a permanent repository, which increases the number of reactors that will likely need to store spent fuel on-site.

Therefore, the Commission proposes to amend 10 CFR 50.54 (bb) to require a power reactor licensee to notify the NRC of the licensee's program to manage and provide funding for management of the irradiated fuel at the reactor either within 2 years following permanent cessation of operation of the reactor or no later than 5 years before expiration of the reactor operating license, whichever occurs first.

The NRC chose a term of 2 years following permanent cessation of operations to be consistent with the timing provisions in 550.82(a) for submittal of a decommissioning plan.

Also, continuing to require licensees to submit spent fuel management and funding plans 5 years prior to expiration of the operating license for a plant that does not shut down prematurely will maintain consistency with the timing i

6 provisions of S50.75(f) for submittal of a preliminary decommissioning plan.

Additionally, pursuant to 10 CFR 50.75, costs of spent fuel removal and disposal are not included in the decommissioning cost estimates.

This proposed rule is consistent with that objective.

The Commission will consider a rulemaking on the inclusion of spent fuel costs as part of decommissioning costs when its 1

information base on spent fuel costs is fully developed.

1 A licensee will need to plan to manage spent fuel once its plant permanently ceases operation so as to comply with the NRC's decommissioning regulations in 10 CFR 50.82.

Therefore, the conforming changes in 10 CFR 50.54(bb) would not represent any additional requirements.

Rather, these changes are administrative because they clarify the timing of submissions of spent fuel management and funding plans for those licensees whose power reactors are shut down prematurely.

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Finding of No Significant Environmental Impact:

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l These proposed amendments would clarify the timing of submission of plans for managing and providing funding for managing all irradiated fuel for those licensees whose power reactors are shut down prematurely.

This action is required to

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coordinate the submission of spent fuel management and_ funding plans with submission of decommissioning plans for prematurely shutdown reactors.

Because management and funding of spent fuel can have a significant impact on the method and timing of decommissioning, licensees should submit their plans for spent fuel management and funding to be consistent with the timing provisions for decommissioning plans in 550.82(a)

(i.e., no later than 2 years after permanent shutdown).

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Neither this action nor the alternative of maintaining the existing rule would significantly affect the environment.

Changes in the timing of the submission of spent fuel management and funding for prematurely shutdown power reactors would not alter the effect on the environment of the licensed activities considered in either the final spent fuel disposition rule (49 FR 34689, August 31, 1984) or the final decommissioning rule (53 FR 24018, June 27, 1988) as analyzed in the Final Generic Environmental Impact Statement on Decommissioning of Nuclear Facilities (NUREG-0586, August 1988).

The alternative to this proposed action would not significantly affect the environment.

Therefore, the Commission has determined, under the National Environmental Policy Act of 1969, as amended, and the

. Commission's regulations in Subpart A of 10 CFR Part 51, that this rule, if adopted, would not be a major Federal action significantly affecting the quality of the human environment, and therefore an environmental impact statement is not required.

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other agencies or persons were contacted for this proposed action, and no other documents related to the environmental impact of this proposed action exist.

The foregoing constitutes the environmental assessment and finding of no significant impact for this proposed rule.

Paperwork Reduction Act Statement This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C.

3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval number [

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Regulatory Analysis w

On August 31, 1984, the NRC published a final rule,

" Requirements for Licensee Actions Regarding the Disposition of Spent Fuel Upon Expiration of Reactor Operating Licensees."

(49 FR 34689).

As part of this rule, the NRC required power reactor licensees to submit for NRC review and approval, no later than 5 years before expiration of the reactor operating license, their plans for managing spent fuel at their site until title to the spent fuel is transferred to.the Department of Energy (DOE).

These plans are to include plans for funding of spent fuel management before transfer to DOE.

9 On June 27, 1988, the Commission promulgated its final decommissioning rule (53 FR 24019).

Section 50.82 of this rule provides that licensees of all power reactors that permanently cease operation after July 27, 1988, including those that shut

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down prematurely, must apply to the NRC to decommission their r

facilities within 2 years following permanent cessation of operations.

Section 50.82 (b) (1) (iii) further provides that the proposed decommissioning plan submitted by the licensee should consider factors such as the " unavailability of waste disposal capacity'and other site specific factors affecting the licensee's capability to carry out decommissioning safely..."

The Commission requires licensees to submit decommissioning plans in a timely manner after they permanently cease operations.

The NRC's regulations recognize a licensee's ability to plan properly and safely for decommissioning depends on a licensee's ability to dispose of its spent fuel.

Thus, the timing of requirements for spent fuel management and storage should be consistent with the timing for submission of decommissioning plans, including those for power reactors that have been shut down prematurely.

Therefore, the NRC proposes to amend 10 CFR 50.54 (bb) to require each power reactor licensee to notify the NRC of its program to manage and provide funding for management of the irradiated fuel at its reactor either within 2 years after the licensee permanently ceases operation of its reactor or no later than 5 years before its reactor operating license expires, whichever occurs first.

l 10 Although the timing of preparation and submission of plans for management and funding of spent fuel would be formally advanced for licensees that shut down their power reactors prematurely, these licensees would be required to incorporate the same consideration of spent fuel management and funding in their decommissioning plans required to be submitted under 10 CFR 50.82.

The proposed regulations merely make 10 CFR 50.54(bb) consistent with 10 CFR 50.82.

Thus, there should be no substantive impact on power reactor licensees.

The proposed rule would not create substantial costs for other licensees.

The proposed rule also will not significantly affect state and local government and geographical regions, or the environment, or create substantial costs to the NRC or other Federal agencies.

The foregoing discussion constitutes the regulatory analysis for this proposed rule.

Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this rule, if adopted, will not have a significant impact upon a substantial number of small entities.

The proposed rule would potentially affect approximately.ll5 nuclear power reactor operating licenses.

Nuclear power plant licensees do not fall within the definition of small businesses as defined in section 3 of the

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L-J 11 Small Business Act, 15 U.S.C.

632, the Small Business Size Standards of the Small Business Administrator (13 CFR Part 121),

or the Commission's Size Standards (50 FR 50241; December 9, 1985).

Backfit Analysis The NRC has determined that this proposed rule does not impose a backfit as defined in 10 CFR 50.109 (a) (1).

Therefore, a backfit analysis is not required for this proposed rule.

List of Subjects in 10 CFR Part 50 Antitrust, Classified information, Criminal penalty, Fire protection, Incorporation by reference, Intergovernmental relations, Nuclear power plants and reactors, Radiation protection, Reactor siting criteria, Reporting and recordkeeping requirements.

For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C.

553, the NRC is proposing to adopt the following amendment to 10 CFR Part 50.

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12 PART 50-DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES r

1.

The authority citation for Part 50 continues to read as follows:

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Authority:

Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244, aus amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, 2282); secs. 201 as amended, 202, 206, 88 Stat. 1242 as amended 1244, 1246 (42 U.S.C.

5841, t

5842, 5846).

Section 50.7 also issued under Pub.

L.95-601, sec.

10,- 92 Stat. 2951 (42 U.S.C.

5851).

Section 50.10 also issued under

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secs. 101, 185, 68 Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332).

Sections 50.13, 50.54 (dd), and 50.103 also issued under sec.

4 108, 68 Stat. 939 as amended (42 U.S.C. 2138).

Sections 50.23, 50.35, 50.55, and 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C.2235).

Sections 50.33a, 50.55a and Appendix Q also issued under sec. 102, Pub. L.91-190, 83 Stat. 853 (4 2 U.S.C. 4332).

Sections 50.34 and 50.54 also issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844).

Sections 50.58 -

50.91, and 50.92 also issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2239).

Section 50.78 also issued under sec. 122,

13 68 Stat. 939 (42 U.S.C. 2152).

Sections 50.80-50.81 also issued-under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234).

l Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

2.

Section 50.54 is amended by revising paragraph (bb) to read as follows:

S50.54 Conditions of licenses.

(bb) For nuclear power reactors licensed by the NRC, the licensee shall, within 2 years followina permanent cessation of operation of the reactor or 5 years before expiration of the reactor operating license, whichever occurs first, submit written notification to the Commission for its review and preliminary approval of the program by which the licensee intends to manage and provide funding for the management of all irradiated fuel at the reactor followinc permanent cessation of operation of the reactor until title to the irradiated fuel and possession of the 1

fuel is transferred to the Secretary of Energy for its ultimate disposal in a repository.

Final Commission review will be undertaken as part of any proceeding for continued licensing under Part 50 or Part 72.

The licensee must demonstrate to NRC that the elected actions will be consistent with NRC requirements

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for licensed possession of irradiated nuclear fuel and that the actions will be implemented on a timely basis.

Where l

implementation of such actions. requires NRC authorizations, the licensee shall verify in the notification that submittals for j

e 14 such actions have been or will be made to NRC and shall identify them.

A copy of the notification shall be' retained by the licensee as a record until expiration of the reactor operating license.

The licensee shall notify the NRC of any significant changes in the proposed waste management program as described in the initial notification.

Dated at Rockville, Maryland this day of 1993.

l FOR THE NUCLEAR REGULATORY COMMISSION.

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James M.

Taylor, Executive Director for Operations.

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