ML20044A370

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Joint Application for Amend to License NPF-82,designating Long Island Power Authority as Plant Licensee Upon or After NRC Amending of License to Nonoperating Status
ML20044A370
Person / Time
Site: Shoreham File:Long Island Lighting Company icon.png
Issue date: 06/28/1990
From: Kessel R, Steiger W
LONG ISLAND LIGHTING CO., LONG ISLAND POWER AUTHORITY
To:
Office of Nuclear Reactor Regulation
Shared Package
ML20044A365 List:
References
NUDOCS 9006280404
Download: ML20044A370 (46)


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UNITED STATES OF AMERICA i NUCLEAR REGULATORY COMMISSION Before the Director, Office of Nuclear Reactor Reculation I J

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In the Matter of )

) Docket No. 50-322 LONG ISLAND LIGHTING COMPANY ) License No. NPT-82 i

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(Shoreham Nuclear Power Station, )

Unit 1) ) '

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JOINT APPLICATION OF IANG ISLAND ,

LIGHTING COMPANY AND LONG ISLAND POWER AUTHORITY TOR LICENSE AMENDMENT TO AUTHORI2E TRANSTER OT SHCRERAM ,

I. INTRODUCTION The Long Island Lighting Company (LILCO) presently is the holder of racility Operating License No. NPT-82 f or the Shoreham Nuclear Power Station, Unit 1 (Shoreham) located on the licensee's site in the Town of Brookhaven, Suffolk County, 1

New York. On March 29, 1990, the Nuclear Regulatory Commission ,

l (NRC) issued a Confirmatory order that modified License No.

NPT-82 such that LILCO may not load fuel into the vesael without the NRC's prior approval.1 On January 5, 1990, LILCO requested the NRC to amend License No. NPT-82 to the status of a Defueled Facility Operating (DTO) License.2 That LILCO 1 55 Ted. Reg. 12758 (April 5, 1990). .

2 Reference 1: SNRC 1664, W.E. Steiger, Jr. , LILCO,  !

to NRC (Document Control Desk), dated January 5, 1990.

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9006280404 900628 PDR ADOCK 050003-22 P PDC

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application is presently pending before the NRC.

t Pursuant to certain agreements involving the state of l-  :

New York, the Long Island Power Authority (LIPA), LILCO, and l the New York Power Authority (NYPA), LILCO has agreed to

' transfer the Shoreham plant to LIPA. The present applii:ation j i

is filed jointly by LILCO and LIPA, pursuant to 10 C.F.R. Il 50.80 and 50.90,, seeking a license amendment authorizing the transfer of shoreham to LIPA. More specifically, LILCO and LIPA request that, upon or after amendment of License No. ]

NPT-82 to a DF0 License status, the NRC amend the license to designate LIPA as the NRC licensee,.

l Set forth below is the information required by 10 C.F.R. 55 50.30 and 50.90-92 in support of this joint l-iL application. LILCO and LIPA show below that LIPA is fully qualified to hold the anticipated DF0 License. The requested amendment is consistent with applicable provisions of law, NRC regulations, arid orders issued by the NRC pursuant thereto.

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3 The fundamental purpose of the requested amendment is I designation of LIPA as the NRC licensee for the Shoreham )

plant under a non-operating license. Because LILCO has  :

already proposed amendment of License No. NPF-82 to a j non-operating DF0 License, it is convenient to refer specifically to the anticipated DF0 License as a vehicle  ;

for achieving the applicants' fundamental purpose.

However, the application more generally seeks designation ,

of LIPA as the licensee in any non-operating license that the NRC may issue.

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As also demonstrated below, the requested amendment involves no j significant hazards consideration and no environmental impacts will result from NRC approval of the transfer.

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1 A. Purnome of Amendment  ;

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1 l The requested amendment is required to effectuate several agreements involving New York State, LIPA, LILCO, and NYPA discussed below. Those agreements provide that Shoreham never be operated as a nuclear facility and instead be transferred to LIPA for the ultimate purpose of decommissioning.

1. The Shoreham Aaremments The Shoreham facility was a source of controversy and litigation in New York State for many years. In 1986, New York State enacted the Long Island Power Authority Act (LIPA Act).4 The LIPA Act declared that rising electricity costs on Long Island and the related controversy over Shoreham posed serious l

threats to the economic well-being, health, and safety of the l

l residents of Long Island and that an and to the controversy was necessary. The LIPA Act thus created LIPA, a corporate L

4 New York Public Authorities Law $ 1020 et sea.

(McKinney Supp. 1990). A copy of the LIPA Act was previously submitted to the NRC in Reference 2: SNRC 1713, W.E. Steiger, Jr., LILCO, to NRC (Document Control Desk),

dated April 16, 1990.

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municipal instrumentality and a political subdivision of the state, and granted it authority to acquire all or a portion of LILCo's assets or securities. In the event of a LIPA i

acquisition of shoreham, the LIPA Act mandates that LIPA close and decommission Shorehan as a nuclear facility and investigate and develop non-nuclear alternative uses, if any, for the plant. N.Y. Pub. Auth. Law li 1020*h(9), 1020-t.

I AfterNxhaustivenegotiationsin1988and1989,the controversy over shorehan was settled by an agreement between the State of New York and LILCO dated February 28, 1989 (1989 1

settlement Agreement). The 1989 Settlement Agreement became l 1

fully effective and legally binding on June 28, 1989. Copies l

of the 1989 Settlement Agreement and the other agreements discussed below were previously submitted to the NRC in Reference 2. These agreements also were discussed at the May i 24, 1990 public meeting involving the NRC Staff, LILCO, LIPA, and NYPA.

l I i Under the 1989 settlement Agreement, LILCO is j l

contractually committed never to operate shoreham as a nuclear l facility. The 1989 settlement Agreement specifically provides l'

that LILCO "will not operate Shorehan pursuant to any g

authorization to operate shorehan that may or has been granted by the Nuclear Regrlatory Commission." The 1989 settlement Agreement further obliges LILCO to transfer certain shcreham O

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assets to LIPA. LILCO's obligations never to operate Shoreham  ;

and to transfer it to LIPA were reconfirmed in a subsequent l Asset Transfer Agreement between LILCO and LIPA.5 The Asset Transfer Agreement also provides a l framework by which (a) all LIPA costs related to license

  • transfer, maintenance of the defueled facility, and eventual decommissioning are to be paid by LILCO and (b) LIPA and LILCO vould enter intoa further agreement governing the mechanics of  ;

such funding and making other provisions for cooperation at the l Shoreham site between LILCO and LIPA. In opinion No. 89-9, i issued April 13, 1989, the New York Public Service Commission l l

(NYPSC) e77. . led the 1989 Settlement Agreement and the Asset l Transfer freement.6 LIPA has entered into two other agreements that are pertinent to the requested license amendment. First, LIPA and LILCO entered into a Site Cooperation and Reimbursement Agreement (Site Agreement), dated January 24, 1990. This agreement sets forth the precise mechanism for payment by LILCO of Shoreham-related costs incurred by LIPA and provides for the cooperation of the parties at the Shoreham site both before and 5 333 Amended and Restated Asset Transfer Agreement dated as ,

of June 16, 1988, as amended and restated as of April 14, j 1989.

l 6 Re Lono Island Lichtina Co., 101 P.U.R. 4th 81 (NYPSC l 1989).

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af ter NRC approval of the transfer. In addition, LIPA entersd i into a Management Services Agreement with NYPA, also dated i January 24, 1990, under which NYPA is providing technical and management services to LIPA as its prime contractor for  !

Shoreham activities. Both of these agreements are discussed further below.

i At the present time, LILeo remains in full control of all activities related to the shoreham plant. Upon issuance of  ;

the requested license amendment, LILCo will transfer certain  :

Shoreham assets to LIPA in compliance with its contractual  !

obligations. LIPA, an authorized entity of the State of New }

York, then will maintain Shoreham in its defueled condition in accordance with the license. In those activities, LIPA will i have the technical and management assistance of NYPA. In sum, the requested amendment will implement the obligations of LILCO and LIPA in fulfilling the 1989 settlement Agreement and i

related agreements.

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2. License to be Transferred l On April 21, 1989, the NRC issued Facility Operating License No. NPT-82 to LILCo, authorizing full power operation of Shoreham. However, in view of the foregoing matters, LILCo has never exercised its full power operating authority under that license, on July 13, 1989, LILeo began transferring fuel l from the Shoreham reactor to the spent fuel storage pool.

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'.'. * 't, t t Defueling was completed on August 8, 1989, since that time .

LILCO has maintained shoreham in a non-operating and defueled r condition in accordance with a systematic program for the maintenance of required systems, as described in Reference 3.7 LILCO has also taken other steps to reduce unnecessary shoreham expenditures, such as by filing a proposed Defueled Emergency .

Preparedness Plan, Reference 4.8 on March 29, 1990, the NRC issued a Confirmatory order pertaining to shoreham.' The Confirmatory order modified f License No. NPF-82 such that LILCO may not place nuclear fuel into the shoreham reactor vessel without prior NRC approval. ,

In accordance with this Confirmatory order, and in accordance with its obligations under the 1989 settlement Agreement and ,

the Asset Transfer Agreement, LILC0 will maintain shoreham in a  ;

non-operating and defueled condition until it is allowed by the NRC to transfer the facility to LIPA.

As noted at the outset, on January 5, 1990, LILCO submitted to the NRC in Reference 1 an application to amend License No. NPT-82 to a DF0 License. Consistent with LILCO's ,

7 Reference 3: Letter from A.F. Early, Jr. , LILCO, to NRC i

(T.E. Nurley), dated september 19, 1989.

l l 8 Reference 4: SNRC 1641, W.E. Steiger, Jr. , LILCO, to NRC l (Document Control Desk), dated December 15, 1989.

9 55 Ted. Reg. 12758 (April 5, 1990),

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l obligations under the 1989 Settlement Agreement and the Asset L

l Transfer Agreamsnt, this amendment would specifically eliminate from License No. NPT*82 any authority to operate the facility l as a nuclear facility. Under LILeo's January application, License No. NPT-82 would be amended such that LILc0 is authorized to

  • possess, use, but not operate" Shoreham. ,Also, LILCO's authority involving irradiated fuel, and certain o'ther l,

radiological materials present at the site, would be restricted to purposes otheN than reactor startup and operations. LILCO's January application was submitted in conjunction with a i Defueled Safety Analysis Report (DSAR), describing the i

defueled, non-operating status of the plant and licensee obligations associated with a DF0 License.  !

LILCO's January Dro License application is currently I i

pending before the NRC, and LILCO and LIPA believe that it will be granted in due course. The present request is for an l additional license amendment in furtherance of LIPA's 1 obligations to acquire (and eventually decommission) Shoreham.

This additional amendment would take effect either  !

l simultaneously with, or after, amendment of License No. NPF-82 to a DFO License status. (3,31 p. 2 n. 3 supra.) Specifically, LIIro and LIPA request that, effective upon or after such 1 i action, the license be amended to reflect the assumption by j 1

LIPA of licensed obligations and authorities. As licensee, l LIPA would not be authorized to operate (or allow any third 8

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f party to operate) Shoreham as a nuclear facility and would not [

be authorized to use licensed nuclear materials for purposes of operating Shoreham.

The present application does not seek any approvals required by 10 C.F.R. I 50.82 to decommission Shoreham. LIPA 4

will seek license termination and approval of a plan to l decommission Shoreham by separate and subsequent application. i That subsequent, application will be accompanied or preceded by l

a decommissioning plan. j i

B. Reruested Authorization t In view of the foregoing, LILCO and LIPA request that, upon or after issuance of the anticipated DF0 License, the license be amended to authorize and reflect transfer of L

Shoreham ownership and licenses status from LILCO to LIPA. In f l

l particular, LILCO and LIPA request that the authorizations of  ;

Paragraph 2.B of the anticipated DF0 License be amended such thats (1) LIPA, pursuant to Section 103 of the Atomic as amended (the Act), and i

  • Energy 10 C.F.R. ActPart of 1954,is 50, licensed to possess and  !

use, but not operate, the facility at the designated location in Suffolk County, New York, in accordance with the procedures and limitations set forth in the license; (2) LIPA, pursuant to the Act and 10 C.F.R. Part L 70, is licensed-to possess special nuclear l material as reactor fuel in accordance with the

' limitations for storage and in amounts required 9

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, 5 for the original reactor core load as described l in the Defueled Safety Analysis Report as )

supplemented and amended; i (3) LIPA, pursuant to the Act and 10 C.F.R. Parts 30, 40, and 70, is licensed to possess any byproduct, source, and special nuclear material >

as sealed neutron sources for reactor startup,

! sealed neutron sources for. reactor instrumentation and radiation monitoring  ;

equipment calibration, and as fission detectors in amounts as required; i

(4) LIPA, pursuant to the Act and 10 C.F.R. Parts 30, 40, and 70, is licensed to receive, possess, and use in amounts as required any ,

byproduct, source, or special nuclear material '

,without restriction to chemical or physical form, for sample analysis or instrument ,

calibration or associated with radioactive I apparatus or components; and (5) LIPA, pursuant to the Act and 10 C.F.R. Parts ,

30, 40, and 70, is licensed to possess, but not I separate, such byproduct and special nuclear l

materials as have previously been produced by

operation of the facility.

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As noted, the DF0 License was previously proposed by L

L LILCO in Reference 1. A complete mark-up reflecting proposed ,

changes to the anticipated DFO License is provided in Appendix A to this application. The mark-up principally involves l s .

! conforming and administrative changes to reflect LIPA as the L

licensee for the unit.

l I LILCO'S January application for a DF0 License was l .

. accompanied by proposed revisions to the Shoreham Technical ~

Specifications to reflect the defueled', non-operating status of J. the plant.. In Appendix B hereto, LILCO and LIPA have provided a mark-up of section 6 of the DFO Technical Specifications to 10 d

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l l i refleet LIPA's proposed assumption of ownership and licensed responsibilities. (This mark-up also reflects the NRC-approved revisions to the existing Technical Specifications made by LILCO pursuant to NRC Generic Letter 89-01.) Reflecting the transfer from LILCO to LIPA requires more changes in the DF0  ;

l Technical Specifications than in the anticipated DF0 License i .

l itself. However, the proposed changes in the Technical '

l l Specifications are limited to matters of organization and do not reflect subrtantive changes from the DF0 Technical Specifications proposed in LILCO's January application.

t II. GENERAL INFORMATION CONCERNING LIPA A. Pronosed Licensee

{

Long Island Power Authority

3. Address of Princloal Office:

200 Garden City Plata, Suite 201 Garden City, New York 11530 s

C. Descriotion of Business or occueation:

LIPA is a corporate municipal instrumentality and a political subdivision of the State of New York. LIPA was created and authorized by a New York State statute, the LIPA Act, N.Y. Pub. Auth. Law 5 1020 at mag. (McKinney Supp.1990) .

LIPA is empowered to assess the needs for gas and electric ,

l power on Long Island and to acquire, construct, maintain, and 11 re. . . -.w..py., 9 ,,7y.. ..,...,.%,%, - . - , , , _,~,y _y .,w.*a- -W*m ' - . - -w

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operate such generating and transmission facilities as it deems l i

desirable in order to maintain an adequate electric and gas supply on Long Island. LIPA is also specifically authorized to i acquire the shoreham plant; upon such acquisition, LIPA is required to close and decommission the plant as a nuclear facility and to investigate and develop non-nuclear alternative uses, if any, for the plant. Il 1020-h(9), 1020-t.10 q Upon receipt of necessary regulatory approvals, LIPA -

will assume ownsirship of the shoreham facility as defined in the Asset Transfer Agreement and will have management i

responsibility for and physical control over the maintenance of I the facility in its defueled condition. Further, upon receipt of subsequent NRC approval of a decommissioning plan, LIPA will I

decommission shoreham and seek termination of the NRC license for the facility.  !

1 D. Place of oraanization Trustees and officers:

LIPA, a corporate municipal instrumentality and a political subdivision of the state of New York, is organized under the laws of New York. Its principal place of business is 200 Garden City Plaza, Suite 201, Garden City, New York 11530.

10 LIPA has retained consultants to analyze the possible conversion of Shoreham to a natural-gas fired electric generating facility or another non-nuclear use.

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4 LIPA is neither owned, controlled, nor dominated by l an alien, a foreign corporation, or a foreign government. l l

All current trustees and principal officers of LIPA are citizens of the United States. Their names and addresses 1

are as follows:

1 LIPA Trustees )

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Mr. Richard M. Nessel Chairman Long Island Power Authority 200 Garden City Plaza, Suite 201 Garden City, New York 11530 -

Ms. Nora Bredes j New York League of Conservation Voters '

195 East Main Street Smithtown, New York 11787 Mr. Stephen Liss Counselor office of Assemblyman Harenburg ,

85 Middle Road

.Sayville, New York 11782 Nr. Irving Like l Reilly, Like & Schneider l L P.O. Box 218 e 1

200 West Main Street Babylon, New York 11702 l I

Mr. Leon Campo i Assistant Superintendent for Finaned I

, East Meadow Union Free School District l Carman Avenue East Meadow, New York 11554 Mr. Thomas A. Twomey, Jr.

l Twomey, Latham, Shea & Kelly l P.O. Box 398 (

33 West 2nd Street Riverhead, New York 11901 13

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Dr. Trank cipriani President, SUNY-Tarmingdale Administration Building Farmingdale, New York 11735 Mr. Sheldon R. Sackstein Sackstein & Company Certified Public Accountants 275 Broad Hollow Road 1 Melville, New York 11747 l

l LIPA officers ,

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Mr. Stanley B. Klimberg Executive Director-and General Counsel Long Island Power Authority 200 Garden City Plaza, suite 201  !

Garden City, New York 11530 Mr. Thomas P. DeJesu Vice President, Operations

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Long Island Power Authority 200 Garden City Plaza, Suite 201 I Garden City, New York 11530 There is presently one vacancy on the LIPA Board.11 1 As disch. sed elsewhere in this application, it is anticipated that Mr. John C. Brons will be named LIPA's Executive Vice .

President, Shoreham Project. LIPA will inform the NRC of any changes as required by NRC regulations.

E. Restricted Data This amendment application does not contain any i

11 In addition, the LIPA Act provides that, as of January 1, 1992, LIPA's Board of Trustees will increase to 22 members. .

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.. t r Restricted Data or other defense information, and it isinot. .

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net expected that any- such information will'become involved in the l); , licensed activities. Should such data or information become d" involved, LIPA agrees that it will appropriately safeguard such 7

data-and'information and that it will not permit any individual 1" '

to have accese to Restricted Data until the Office'of Personne1~

, .c q Management sh2 ! Aave made an appropriate investigation and

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report to the NRC on the character, associations, and loyalty-of such individue'1, and the NRC shall have determined that .,

permitting such person to have access to Restricted Data will ,

n not endanger the common defense and security.

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III. LIPA'S ORGANIZATION AND QUALIFICATIONS p

This section describes LIPA's Shoreham Project

!g; organization and sets forth LIPA's technical and financial qualifications to become the holder of the anticipated DFO i

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License. The Shoreham Project organization, and LIPA's

technical and-financial' qualifications, have been developed to j o address the limited license authority sought by LIPA and.the 4 w particular radiological conditions at Shoreham.

A. Econe of License and Shoreham conditions 1 ,

As discussed above, as a licensee LIPA will'not 4

operate Shoreham as a nuclear facility. Rather, it will assume j

'! >' ownership of Shoreham subject to the requirements of the I

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license and thereafter decommission Shoreham and terminate the  ;

license pursuant to 10 C.F.R. 5 50.82.- Both in maintaining the plant and in decommissioning, there will be minimal

-radiological risk due to the uniquely limited operating history i

at Shoreham.

On December 7, 1984, the NRC issued to LILCO a license authorizing fuel loading and cold criticality testing at Shoreham. Initial criticality was achieved on February 15, ,

1985.. This was'followed by a low power license, issued by the )

NRC on July 3, 1985, authorizing testing at power levels not to exceed 5% of rated power. As discussed in more detail in Reference 2, Shoreham-operated intermittently at low power-levels from July 7, 1985 to June 6, 1987, generating total gross thermal energy of 119,742 MWH. The reactor has not been operated-at wower since June 6,-1987; LILCO has never operated l

the Shorantw plant above the 5% power level.

l t .15r: ? .i . bundles comprising the first Shoreham core arr ,,3 v t g n : 1v sysred in-the spent fuel storage pool in the reactor ?>OGb9- continued maintenance and storage of the irradiated fuel in the spent fuel storage pool poses a minimal radiological hazard. The burnup of the fuel is approximately 1

two effective' full power days. LILCO has estimated that the .

l core curie content as of June 1989 was no more than 176,000 curies with a residual heat generation rate of only 550 watts.

The only gaseous activity at Shoreham consists of about 1500 L,

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curies of Krypton 85 that are contained in the: fuel. In-general, the limited irradiation of the fuel at Shoreham means

[* that the fuel presents little risk of undue occupational and

, non-occupational radiation exposure. In addition, the fact-i; that there has been no high power operation substantially reduces tk6 likslihuod of any operation-related fuel cladding failures.

1 LILCo ,has prepared and previously submitted to the f

NRC a Radiological Safety Analysis for Spent Fuel Storage and Handling (RSA) for Shoreham in conjunction with its request to i

suspend offsite emergency planning and preparedness for p shoreham (Reference 4). The RSA establishes that, given

.N Shoreham's defueled condition and the low radioactivity of the

. fuel, it is not credible for an accident to occur that would

hp require an offsite emergency response. LILCo has also prepared and previously submitted the DSAR for Shoreham in conjunction with its application to amend License No. NPF-82 to a DFo License status (Reference 1). The DSAR further confirms the minimal risks of continued maintenance of the Shoreham plant in
  • its defueled condition. Finally, LILCO has completed a. Site Characterization Study. The results of this Site r , gj Characterization Study, along with the results of.LILCo's

($ routine radiation and contamination surveys, confirm that the

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levels of contamination from non-fuel sources of radioactivity pose minimal risks.

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.t Overall', therefore, . LILCO and LIPA expect that with

. adequate precautions the occupational radiation doses during maintenance and decommissioning of the plant will be minimal because of the initial low levels of radiation and l ,

contamination at the site. .They also expect that during I

maintenance and decommissioning of the facility there will be 1

negligible risks of offsite doses. As shown below,.LIPA's l

qualifications to become the holder of the anticipated DFO L Licensa are more'than adequate.

L B. LIPA's Shoreham Proiect Oraanization LIPA's shoreham Project Organization is described in e detail.in Appendix C and illustrated in the' organization chart 1

that appears as Exhibit 1 to Appendix C. As explained at the May 24,=1990 meeting between the NRC Staff and representatives of'LILCO, LIPA, and NYPA, operat'ingEpositions reflected in the l

' organization chart will be filled by employees of LIPA (including several LIPA/NYPA coemployees), by employees of L NYPA, and by employees-of LILCO. In addition, resources not s reflected;on the organizational chart will be-brought to bear on the Project.

Oraanizatien Chart. As the-licensee, LIPA will

= provide the overall management for maintenance (and eventual decommissioning) of Shoreham. Already in place at LIPA are the Board of. Trustees, the Chairman, and the (full-time) Executive Director shown on the organization chart. Prior to accepting 18

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the anticipated DF0 License, the remaining positions in the organization chart will be filled with qualified personnel in three distinct ways.

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First, seven individuals with pertinent nuclear' plant ,

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experience will be employed directly by LIPA.- The Project positions to be held by these individuals are designated en the-1 organization chart by the symbol for "LIPA/NYPA Coemployees."

The commployment. positions are those most vital to the conduct

'l of safe and effective activities at the plant,. and LIPA-therefore desires.that such positions be filled by persons 1

employed directly by LIPA and accountable to LIPA's Executive l 1

Director and LIPA's Board of Trustees. These prospective LIPA employees are presently employees of NYPA, and they will be l

coemployed by LIPA and NYPA during the Shoreham Project. All

.except the Executive Vice President,-Shoreham Project, will be dedicated full-time to the-Shoreham Project and will reside at Shoreham.

The second source of qualified personnel to fill I organization-chart positions is provided by'LIPA's Management-Services. Agreement with NYPA for technical and management services. It is planned that a number of organization-chart l positions will.be filled by employees of NYPA in its capacity-i o as prime contractor to LIPA (1234, not on a coemployment V

l, basis).

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chart will-be staffed by personnel-provided by other-contractors or by LILCO personnel presently at Shoreham. The L Site Agreement-between LIPA and LILCO specifically provides l

l' that, through its contractor NYPA, LIPA may request LILCo. to-assign its'own Shoreham personnel to maintenance and

' decommissioning activities to be conducted after transfe'r.of Shoreham to LIPA.12 LILCO is obliged to "use its best efforts" l to make such employees'available, " consistent with [LILCO's]

1' own needs and objectives giving due regard to minimizing Costs Attributable to Shoreham." Site Agreement,,Section 4.3(b).-

l The organization chart also reflects a LIPA

. Independent Review Panel.. The Panel will consist of nuclear p  : experts: appointed by LIPA's Board of Trustees. The Panel will advise the Chairman and the other LIPA Board members concerning I Project matters and provide the Board-independent assurances '

y that.the-Project is proceeding in a safe manner.

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r 12 Such personnel would " remain employees of LILCO which will be responsible for all their direct and indirect costs and L . expenses" and "have sole responsibility for labor relations with respect to Shoreham Employees." Site Agreement, section 4.4. However, such employees would be "under the ,

supervision" of NYPA in its capacity as contractor to LIPA. J l

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Finally, the organization chart reflects a site Review Committee. The-SRC will consist of'the Resident Manager and various Department Heads and Division Directors. The SRC will advise the Resident Manager on all matters related to nuclear safety and radiological environmental _ activities.

Other Proieet Resources. In addition to the positions ident$fied in the organization chart, LIPA will also bring other resources to bear on the Project.

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First, the NYPA resources available to LIPA will extend beyond those NYPA personnel filling organization-chart t positions (on a commployment or contractor basis). Under the Management Services Agreement between LIPA and NYPA, all of NYPA's resources will be accessible to'LIPA as needed in-connection with maintenance (and eventual decommissioning) of Shoreham. NYPA's special Projects Group will provide, and'

~ coordinate the provision of, NYPA services needed by'LIPA.

Second, LIPA has retained.and will retain other contractors. For example, LIPA has. retained the engineering consulting firm of ABZ, Incorporated to monitor conditions at Shoreham and advise the Executive Director on Project matters.

LIPA:is presently seeking an architect-engineer to provide 1 engineering and licensing services related.to decommissioning.

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. . l' n o, . . s.: i oraanization obinetives. The LIPA Shoreham Project l-

'ohganization fully; satisfies the criteria identified in Generic L: = <

Letter 88-07.(March 22, 1988) -

'1 (1) The. structure provides clear lines of authority, responsibility, and communications ,

from LIPA's Board of, Trustees through the- I highest management levels to and including all functional organization positions.

(2) There-will be an Executive Vice president, Shoreham Project, charged with overall '

responsibility for plant nuclear safety...This

. individual will have overall authority to take such measures as may be needed to ensure l: acceptable performance of the staff to ensure radiological safety.

[

(3). There.will be a Shoreham Resident Manager in the site organization responsible for overall site performance of-licensed activities. The Shoreham Resident Manager will have control l' over'all onsite activities necessary for safe and effective maintenance and-(eventual)-

decommissioning of the plant.

-(4) Adequate = provisions have been=made for the-

' Health Physics and Quality Assurance / Quality-Control departments, including appropriate lines of reporting and appropriate "

organizational' freedom.

(5)- The LIPA organization is fully qualified to oversee its prime contractor (NYPA) at >

Shoreham. LIPA's technical qualifications.to-o do so include coemployment of selected NYPA nuclear managers, a LIPA Independent Review Panel, and LIPA's contract support independent of NYPA.

C. . .Manacement and Technical cualifications.

The LIPA Project Organization proposed by LIPA is fully qualified to provide the management and technical 22 3.

l 7

9

.[

L

  • l i L expertise required to hold a Dro License for Shoreham. l l

Relevant 1 qualifications are summarized below and shown in greater detailLin Appendix c.

First, LIPA has established its own qualifications to manage the project. LIPA's Board of Trustees consists of eight individuals with broad experience, including a chairman having broad utility-related experience. (Eng 5-24-90 Tr. 10-12, 21.) )

l LIPA also;has a, full-time Executive Director who has broad experience in energy and utility matters. (Id. 27-28.)

Additional management depth, and specifically relevant technical experience, will be added to LIPA by the above-referenced coemployment of seven NYPA personnel with 1

relevant nuclear experience. LIPA will gain additional 1 l

technical expertise relevant to the Shoreham project through a l qualified Independent Review Panel. LIPA's technical expertise may be further augmented through the acquisition of external resources, as already has occurred with retention of ABZ,-

Incorporated, a firm of consulting engineers with broad 1 experience in the nuclear area. '

p 1

l second,-in addition to coemployed LIPA/NYPA personnel, LIPA will under the Management Services Agreement ,

draw upon additional nuclear resources of NYPA to staff and to

, support the'Shoreham Project Organization. As LIPA's prime contractor, NYPA will bring to the Shoreham project substantial qualifications in the nuclear area. NYPA is the owner and 23 t

i.

'[ <[ .; ~,.;, '

T operator of the Indian Point Unit 3'and James A.-FitzPatrick nuclear plants-under NRC License'Nos. DPR-59'and DPR-64,.

respectively. As such, NYPA offers an existing staff, programmatic infrastructure, and the complete range of support resources necessary for effective maintenance of Shoreham and for eventual decommissioning. This is particularly true because FitzPatrick is a boiling water reactor (BWR) similar to Shoreham.

Within NYPA's organization, the Special Projects Group is presently assigned NYPA's responsibilities under the Management Services Agreement. The NYPA Special Projects Group offers experienced individuals with diverse backgrounds in all phases of nuclear and fossil' power plant design, construction, modification, operations, maintenance, and testing, as well as management of major projects. The group was established'in

'1983:to address steam generator issues at Indian Point Unit 3.

This effort culminated in the successful replacement of all four, steam generators in June 1989, setting new' domestic records for shortest schedule and lowest cumulative radiation exposure. This. experience will directly benefit the Shoreham Project. The Special Projects Group has also been specifically expanded by NYPA for the Shoreham Project. The Group draws 1

upon considerable NYPA resources in order to meet the needs of the. Shoreham Project.

24  !

. 'a%. ' '

e, 4 .

The Site Agreement provisions discussed above .;

concerning LILCO: employees constitute a' third source of technical qualifications for the LIPA Project organization.

Pursuant to the above-referenced provisions, the LIPA Project

'i i

organization likely will- include various LILco employees presently conducting LILCo's operations at the plant. Such individuals will provide first-hand, in-depth familiarity with )

plant conditions to supplement the technical qualifications of

> LIPA coemployeem'and NYPA personnel assigned to the plant. .j q

Finally, where necessary, LIPA will procure qualified ,

contractor. support for particular tasks at the plant. For example, LIPA is presently in the process of' procuring an

- architect-engineer -to undertake engineering and licensing 1

. services relating to the decor.missioning of Shoreham.

1 1

In sum, LIPA will have personnel with sufficient experience and qualifications to manage and conduct the limi*,ed licensed activities. LIPA coemployees and NYPA personnel assigned to'the project will be drawn from an organization-currently operating two successful nuclear. units -- one a BWR of design similar to.the Shoreham plant. In addition,'some onsite work will be carried out by LILCO personnel currently employed at Shoreham. Finally, LIPA will retain qualified contractors, where.necessary, to perform specific functions, f

- In total effect, therefore, following issuance of the license-amendment and completion of the proposed transfer, the Shoreham 25

w . ,

9], .f ' s i

An J

i 2_,

p Project Organization will be well-equipped to maintain Shoreham

[ in :its present, safely defueled condition, and eventually to carry out the decommissioning of the Shoreham plant.

L

. D. Financial Oualifications ha

! LIPA's financial qualifications are established by '

s L

the Asset ~ Transfer Agreement.and the Site Agreement. Those agreements oblige LILCO'to fund all Shoreham-related activities )

of LIPA and NYPA, including asset transfer, license transfer, j maintenance activities, and decommissioning activities.. l t

More specifically, the Asset Transfer Agreement between LIPA~and LILCO expressly provides that "LILCO will pay LIPA for Costs Attributable to Shoreham." Section 5.3(a).

L Section 2.4 of: the site Agreement further provides that i.

b '"LILCO's obligation to pay ,gil Costs Attributable to Shoreham:

... is unconditional and not contingent on any PSC action."

l (Emphasis added.) The phrase " Costs Attributable to Shoreham" is' defined in detail in Section 1.12 of the Site Agreement.

Covered costs specifically include costs incurred by LIPA or NYPA in connection with asset transfer or license transfer and.

"All costs . incurred by LIPA.or NYPA after [ transfer) ...

attributable to LIPA's or NYPA's ownership, possession, Maintenance,-Decommissioning or dismantling of Shoreham."

L 26

- - . , - a ._ -

o ,

  • ),L ' ' h.

y .. m + 1 C *l . I (Emphasis ~added.)13 Thus, LILCO is comprehensively obligated-1 to pay all costs that LIPA and NYPA might incur in maintaining 4

.or decommissioning Shoreham.

-The site Agreement also contains a detailed' mechanism for implementing LILCO's funding obligations. These N. provisions, fully-functional since January 1990, are-contained -

in Article III. Briefly, the mechanism established pursuant'to the payment provisions is as follows:

1. In accordance with the Site Agreement, LIPA has established: (i) the Cost. Reimbursement Fund for the purpose v of paying all Shoreham-related costs incurred by NYPA or.

l 1:

L -Third-party Suppliers which contract with LIPA to perform Shoreham: related work; and (ii) the LIPA Reimbursement Fund- for h the purpose of paying'LIPA for all costs related to-Shoreham-Nl l

incurred by LIPA.- On January 24, 1990, LILCO remitted-to LIPA i I

$4,817,777 for deposit in the Cost Reimbursement Fund and the  !

I L

J L-b 13 Section 1.26 of the Site Agreement in turn defines

" Maintenance" as "(a]Il actions" taken by LIPA or NYPA after transfer "in order to maintain Shoreham in a safe ,

L

-condition pending completion of Decommissioning,. including. D actions necessary to comply with regulatory requirements."

Section 1.13 of the Site Agreement defines

" Decommissioning" as the " permanent closure and removal of Shoreham . . . mafely from service and the reduction of.

residual radioactivity at Shoreham to-a level.that permits release of the Shoreham site for unrestricted use and termination of the NRC Licenses." Covered activities include disposition of the irradiated fuel and other-radioactive materials, and "any dismantling of the Assets-that LIPA may decide to undertake."

l-27 l

I --

-. ,,  :,7 ,'

gr ,

6 LIPA Reimbursement Fund. -Together with certain amounts not yet billed'by LIPA, these moneys were to reimburse LIPA and NYPA for all Shoreham-related costs incurred up to January 1, 1990-

'and;to pay for. costs estimated to be incurred by LIPA and NYPA during the first three months of 1990. Site Agreement, Sections 3.3 and 3.4.

2. Since February 1990, LILCO has remitted each month to LIPA for deposit in the Cost Reimbursement Fund and the LIPA Reimbursement Fund the amount of money projected-by

.LIPA'to be= required'to meet cash needs for the third following month. -Site Agreement, Sections 3.3(b), 3.4(b), and 3.5. In this way, the two. Funds will at all times have a three-monthL

  • cushion" of-funds. LILCO is obliged to continue such payments until'the site Agreement is terminated consistent with NRC requirements. Site Agreement, S.ections 2.4 and 7.1.-

c3. LILco's' monthly payments to LIPA for deposit in-4

.the Funds will be based upon LIPA's projections of anticipated cash requirements. LIPA may at any time submit revised monthly cash' flow' projections to LILCo. LILCo.is obligated to provide

-money for the two Funds in accordance with the most recent cash flow projection. Site Agreement, Section 3.2.

4. LILCO will advance LIPA an additional amount of operating or other funds if such funds are required by any 28 i

.- -..- - - - ~.- . . - - - _. . -

regulatory authority'or if LIPA and LILCO so agree. Site 1

Agreement, section 3.16(b).

Thus, all expenses to be incurred by LIPA in connection with asset transfer, license transfer, maintenance, or decommissioning will be paid by LILCO on an as-needed basis.

LILCO's ability.to pay in conformity with the Asset Transfer Agreement and the Site Agreement also is reasonably assured.

LILCO's financial condition is sound.14 Moreover, LILCO has submitted both the' Asset Transfer Agreement and the Site Agreement to.the NYPSC for approval. The NYPSC approved the ,

Asset Transfer Agreement in Opinion 89-9, dated April 13, 1989 l and the Site Agreement in an Order dated June 7, 1990. These approvals ensure that LILeo will have sufficient funds, through NYPSC ratemaking,- to pay for Shoreham's maintenance and I decommissioning. 5 1

l L

4 LILCO has previously submitted to the NRC a letter addressing the decommissioning funding provisions of 10 C.F.R.

L 14 Reference 5: ; SNRC 1697, W.E. Steiger, Jr. , LILCO, to NRC

[. - (Document Control Desk), dated March 15, 1990.

L .

! 15 . In~0 pinion No.189-9, the NYPSC approved rate increases for

! . LILCO of 5.44 affective February 18, 1989, 5% effective December 1, 1989,Jand 5% effective December 1, 1990. 333 Be Lonr Island Liahtina co., 101 P.U.R. 4th at 91-92, 114.

The NYPSC also approved a Rate Moderation Plan projecting additional increases of 4.6% per year through 1999. Id. at 92, 114. The 1989 rate increases have been put into effect. Thus, LILCO is currently obtaining financial benefits under the 1989 Settlement Agreement.

29

- - - _ ._ _ . . ~ - - - - _ - - . . . -- -- -_- -.. ~. -

.a

, . [',,

ilJ 50.33 (k) (2) and 50.75(b)=.18 LILCO showed therein that those.

provisions do not apply to plants that are closed prior to full-power operation and therefore should not be applied to ,

Shorehan. LILCO's submittal further showed that the s above-referenced agreements provide reasonable assurance that ,

1 adequate funds will be available for plant decommissioning. l LILCO's request that the NRC Staff so determine is presently  !

pending before the'NRC.. LILCO and LIPA anticipate that the NRC's decision with respect to that request will be fully 1

applicable to LIPA as holder of the license.

l The foregoing demonstrates that at all times there I will be sufficient moneys for payment of all-Shoreham-related j costs,-including all costs related to Shoreham's maintenance and decommissioning.17 I

i 1l 16 Reference 6: Letter from V.A. Staffieri,.LIIco, to NRC (T.E. Murley), dated June 11, 1990.

l' ' 17- By separate correspondence, LIPA will indicate in due course its arrangements for insurance and indemnity agreements. These arrangements will be in compliance with NRC requirements and will be in place no later than issuance of the proposed amendment.

30 t_______________

.., =.a ..

l)

, y<

,- i

' -?

IV. SHOREHAM PLANT. MAINTENANCE l As discussed at the May 24, 1990 meeting between the NRC Staff and representatives of LILCO, LIPA, and NYPA, LIPA j i

and NYPA are now preparing actively for LIPA's assumption ~of  ;

responsibilities for maintenknee of Shoreham. As the prospective licensee, LIPA seeks to be fully prepared to p

_ discharge its licensed obligations prior to assuming ownership q a

L of Shoreham. Ohe important aspect of LIPA's preparation is the-process of operations and Maintenance Program Development }rt (DMPD) now underway. l The OMPD is a systematic and comprehensive review of-existing programs and procedures in place at Shoreham'that are

- necessary to meet applicable regulatory requirements and that are necessary for safe and efficient plant maintenance. These include, but are not limited to, programs and procedures in the l 'following areas: Administration, Contracts / Purchasing, -

Emergency Planning and Preparedness, Engineering, I i

Environmental, Licensing, Maintenance, operations, Health Physics, Quality Assurance / Quality Control, Radiological Controls, Security, and Training.-

L .

9 l

The OMPD has three principal objectives. First, the 1

. OMPD will allow LIPA to identify all policies, programs, and procedures in place at Shoreham that are necessary to maintain 31 r

^

', .?s .

  • c.'

Shoreham in a defueled condition. These applicable policies, programs, and procedures will-be adopted by LIPA upon issuance of the amendment. Those procedural measures in place at Shoreham relevant only to an operating reactor will not need to be adopted.

Second, as part of the OMPD, LIPA is undertaking to-make any necessary administrative changes in policies,

[ programs, and prbeedures to reflect LIPA as the new owner and [

L u licensee and to reflect LIPA's organization and personnel.

This-includes, for example, changes to the Quality Assurance Program to reflect the LIPA Shoreham Project organization discussed above. This also includes' purely administrative L changes to the Emergency Plan and implementing procedures, and to the Security Plan. In addition, LIPA will be reviewing and-

. transferring fron LILCO to LIPA, as necessary, contracts and agreements necessary to support the programs.18 Finally, as L . -

part of this objective, LIPA vill identify-and prepare to transfer, as necessary, all non-NRC licenses and permits needed for Shoreham plant maintenance.

Third, the OMPD will ensure-a smooth transfer of  !

i L

E NRC-licensed obligations to LIPA. Through the OMPD, LIPA and 18 For example, LIPA will assume certain contracts with service vendors -- 32g2, for security services.

32 l-L - -

. , , :; q,* :

,.. i.- -

+ ;. . [ >

.NYPA1 personnel are becoming familiar with Shoreham and with all that is necessary for continued safe maintenance of the plant in a defueled condition. Upon issuance of the amendment, LIPA +

annagement will be prepared to take " ownership" of the plant and of all the applicable policies, programs, and procedures.

In this regard, the OMPD specifically embraces the entire scope of regulatory requirements.

The OMbD process of adapting policies, programs, and j

procedures to a new licensee raissa no issues relevant to the i  ;

requested amendment. LILCO already has in place.an NRC-approved array of policies, programs, and procedures.

Since the settlement of the Shoreham controversy became effective, LILCO also has sought various amendments to License No. NPF-8 2, and other relief, to eliminate regulatory requirements that are not pertinent to Shoreham's permanently ,

defueled status. Among LILCO's most significant submittals in this respect are Revision 3 of the Updated Safety Analysis

--Report (USAR) and'the DSAR provided in conjunction with LILCO's January application for a DFO License (Reference .M . These LILCO documents most fully describe the-obligations to which LILCO is or would be subject by license, technical specification, or regulation upon issuance of a DF0 License.

~ Based upon these submittals, the NRC will have thoroughly reviewed and determined the appropriate scope of requirements at Shoreham.

33 L ____--_ ________ ___ _ _ _ _ _ __ _ _ _ _ _ _ _ _ ________ ___ , _ , _ _ _ _ . _ . _,

l

','e ; *,. ,

1 As discussed above, it will, of_ course, be necessary )

i to make formal changes in LILCo policies,-programs and ,

procedures to reflect transfer of Shoreham to a new owner with h a different organization-and personnel. Substantively, J

?

E however, LIPA is committed to continuing LILCO policies, programs, and procedures in force to the maximum extent i possible as they relate to continued maintenance of a defueled facility. These policies, programs, and procedures are or will l 1

be well-known to'the'NRC. Therefore, the requested amendment l does not raise any issues regarding the substantive sufficiency of'those polices, programs, and procedures. .

However, LIPA will a

be prepared to discuss specific matters with the NRC Staff at any time during the license amendment process and will provide copies of amended plans and procedures as may be necessary.

l 4.

V.' UPDATED SAFETY ANALYSIS REPORT /

DETUELED SAFETY ANALYSIS REPORT

! LILCO-has previously prepared and maintsined a USAR L

i for Shoreham. Pursuant to 10 C.F.R. 5 50.71(e) (4) , each licensee must submit to the'NRC an annual revision to the USAR. f Under NRC regulations, the USAR shall be retained through I termination of the license, 333 10 C.F.R. 5 50.71(e) (6) . ,

L i 1 i L .

j i

'i 34 l

~ '

, , .3[ , ;' e J e.

On June 1, 1990, LILCO submitted Revision 3 to the-USAR in Reference 7.1' Revision 3 accurately reflects the q

status of the Shoreham plant as of June 28, 1989, the date of p

i permanent cessation of operations, and the status of the LILCo =

~

organization as of April 20, 1990. In addition, as discussed q;.

above, LILCo has prepared and previously submitted the DSAR 3

(Reference 1). The DSAR provides revised accident analyses and

{

[ , pertinent information given the defueled conditions that will continue to exi't s at Shoreham following the transfer of the q

facility and pending approval of plant decommissioning. LILCO p and LIPA expect that Revision 3 of the USAR, in conjunction with the DSAR, will provide an adequate-baseline for activities associated with continued maintenance of the Shoreham plant.

LIPA in due course will revise the Shoreham USAR and DSAR, to the extent necessary,.t.o reflect the proposed. transfer of licensed responsibilities and to reflect LIPA's proposed

!' - activities. Following approval of the proposedsamendment, LIPA-will continue to revise and update the,USAR and the DSAR as hn' necessary.

H L

4-

.y ,

Ut

,it j'c 19 Reference 7: SNRC 1720, W.E. Steiger, Jr. , LILCo, to NRC

+ (Document Control Desk), dated June 1, 1990.

m is-3 35

e il .j.

j . )i u .

. i

' .[ [' J. ,

l l

L VI. ANTITRUST CONSIDERATIONS l

The_ proposed amendment involves a transfer of ownership of the shoreham facility. However, because the proposed licensee will not operate Shoreham as a nuclear generating station, there are no antitrust implications from.  ;

the amendment that are within the scope of the NRC's antitrust jurisdiction. The proposed license amendment does not require statutory antitrust review pursuant to Section 105 of the Atomic Energy Act and 10 C.F.R. Il 2.101(e) and 2.102(d).

VII. ENVIRONMENTAL INFORMATION The proposed license amendment has been reviewed to ,

determine .if this action would have a significant environmental-impact'or if an environmental impact statement is required. It has been determined, based on this review, that the proposed t

action would not result in any environmental impacts nor would at. environnental impact statement be required. Please refer to Appendix D.for a summary of this review, l

l VIII. NO SIGNIFICANT HAZARDS CONSIDERATION ,

l The proposed license amendment has been analyzed in accordance with 10 C.F.R. $ 50.92 to verify that it involves no significant hazards consideration. This analysis has determined that no significant hazards consideration is l

36

r.,

m

'* 4 ${L F *'

. " involv;d. Plcosa rOfcr to App:ndix E for dstnile of this

' analysis.

L Lv n

IX. REQUEST FOR RELIEF-F LILCO hereby requests, and consents to, amending License No. NPF-82 to authorize transfer to LIPA of _j licensed responsibilities in accordance with the Joint Application. This Joint Application has been prepared by

_LIPA in consultation with LILCO as to matters within its l f- i expertise-and knowledge; all information contained herein is j true and correct to the best of the knowledge, information, and belief of the undersigned.  ;

.i

-Long Island Lighting Company. j i

By IA\

William E. Steggefr N #,  !

Assistant Vicd President '

1 Nuclear Operations -l q

in q

Subscribed and sworn to me this )@fd day of June 1990.

, dws.s u, a .UTRE 8.&'

NOTAP.Y PUBUC, State of New York s No. 4806267, Suffolk County -

v. .r. __ um n ino/

1 No'tary ' Pub'l~i'c of New York LIPA hereby requests, and consents to, amendment of' License No. NPF-82 to authorize transfer to LIPA of 4 licensed responsibilities in accordance with the Joint y

Application. This Joint Application has.been prepared by LIPA in consultation with LILCO as-to matters within its 37

_ _ . _ _ __ ._ _ .. . _ . _ _ . _ _ _ _ _ . _ . _ _ _ _ _ _ . . ~ . _ _ _ . _ _ _ . . _ . _ _ _ _ _ .,

. -' expertise and knowledget . all information contained herein is true and. correct to'the be'tof;th'e s knowledge, information,

-and belief of the undersigned. '

Long Island Power thority  !

[

.~ p . s-1 p g

T

/*

%,gi&RY

,- r "'

p(p c ay '

L RfMiard M. d;ess'eV i

@)

s p p g. ', Chairman

' p' '

cribedandsworntomethis2/YdayofJune1990.

v Aft*Vtc.W HonRY PUBllC, SWe 01 N8 '

l W~

~

No.

n,m 4BB6267.

noires Mrf 18 SuttoikI Coe t Notar~ Public.of New York i

)

1 l

h 4

L- i l

i m

38

___:-__-_--._=-_____-_-_- ._ _ __ - ___ _ __ _ _ _ _ _ _ _ _ _ - _ _ _ - - _ _ _ _ . - . .

.- ~ - - . -- . . - . . . - - .

. . . .s..

r 1

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t i.

1 APPENDIX A i Mark-up of the Proposed Shoreham DSAR  !

Defueled Facility operating License 4 3

  • I

) t

'4 k

\ ,

a

.t2.-! ,

j t

i T. ,

i l

5 i

, y, i 5

.i;

  • i l:E '

p y?cWc/t A urH o AIT"Y 1pys up,3 :.: -~: :-- r~A DOCKET & g,,]y,'

SHORENAM Nt' CLEAR POWER STATION, g g i DEFUELED FACILITY OPERATING gggg),

,g, License No. NPF-82

2. The Nuclear Reculatory Commission (the Commission or the NRC) has Afound that: '

pg

1. . The application for/.ag. license filed by the Lono Island Lichtine CcepanyE-;;te 11: a ===i complies with the standards and (L8LCO recuirements of the A &mic Eneroy Act of 1954, as amended (the-Act), and the Cerr.ission'stresulattens set forth in 10 CFR Chapter I, and all recuired M i."ic. .wn. to ether noencies or ~

bodies have.been duly made; no Q g.H Q l-

3. Construction ef the;Shcreham Nuclear Power Station, Unit 1 (the-facility), has been completed iri conformity with construction Permit No. CPFF-95 and the applicatica, as amended, the proviricris of the Act, and the reculations-of the Corription; C. The tacility vill operate in con'fornity with the application, as

' ' amended, the previsions of the Act, and the reculatiens of the Corrirsion:

D. There is reatenable assurances (1) that the activities i authorired by this cperatino license can be conducted without ordancerinc the health and safety of the public, and.(11) that such activ! ties will be conducted in compliance with.the Cormissi 's reculations set forth in 10 CFR Chapter I; l

st. c o E. -The 11.... kin technically cualified to enease in the activities authorized b Conmissio ' y eculations this cperatino only license set forth in 10 CFRin accordance Chapter I; with.the 1

ifLCC F.

-.he 140,lic" Final n::@^ialhas satisfiedRecuarements Protection the applicableand provisiers Indemnity of 10 CFR Acreements," of the Commission's reculations G. The issuance of this license will net be inimical to the commen defense and security or to the health and safety of the.public; l

l

3 .. '

-i

. l d*~ '

/ }

\

. . ,b .

t V

2 E. Af ter weishina the environmental, economic, technical, and on.w l-benefits of' the f acility soainst environmental and other cosu ,

and considerino available alternatives, the issuance of F M lff.y operatino License No. NPF=62, subject to the conditions for 4 protection of the environment set forth in the EnvironmentM j Protection Plan attached as Appendix 3, is in accordance with 30 .

CFR Part 51 the Commission's reculations and all applicabib roccirements have been satisfied; and

2. The receipt, possession, and use of source, byproduct and specia)

) SERT nuclear material as authorized by this license will be in i

l g w y accordante with the Comrission's reculations-in 10 CFR Parts 30, 40, and 70.

34 Eased on the forecoins findires eri O.. Gnsiva:n: * *4a  ? nd:1

. u = i = = 2: m - - ~ m m .:......... .=mme-g l- _01,1;;^.kheLonaIslandilichtir:*

' issued te ' Defueled Ce;g...g Facility Operatino LicensetoNo.

(the licensee) readNPT-82 as is

) tollowas Qower A vfhark A. The license applies to the Shoreham Nuclear Power Station, Unit 1, a beiline water nuclear reactor and associated soutpment, owned by the licarsee. The facility is loested in Suffel b N'*k County, Defueled New York, Safety Analysis report and(DSAP.), is described which in includes, the -11....;nby 'g[f re erence, the appropriate sections of the Updated Safety .Aralysis Repert (USAR),.

es supplemented and amended, and the Mee..e.. "- Vnvironmental

-Report, as supplemented and amended g, l

Gh erdQ u

3. subject to the conditions and requiremerts incorporatedLherein, I the Commission here W licenses the Lono Isler.d"Lichtin: C:r---  !

(. the nsee): @ewu Ap14,,cg (1) Pursuant to Section 103 ef the Act and 10 CFR Part 0, to i possessguse, but not cperatejthe facility at the-desionated l location in Suffolk County, New York, in accordance with-the j procedures and linitations set forth in this licenser _

Ac erg (2) Pursuant to the Act and 10 CTP Part 70, to possess speelal nuclear material as reactor fuel, in accordance wit the

~/NJ A.T~ limitations for storace and amourts required for M recetor core load as described in Datueled Safety Analysis Report, 9 as supplemented and amended A -1.w. T u d i ;.. 4.1 0;;isivu, Lb?-ra- e, ;r- " " , 10" r 1 73A , Octo r 31, 964: ommiss n or ndum a horder, LI 84 * , Nov er .9', 198 Memor ndur an order ull o n ad se es, BP-E4 53 No arber 30, 19 4: Part "1 ni al De icn o can y le 1 Ce rator , $5- June 1 , 1 Fartia Aft 1 1 g; d en arcene Pla .ine ( LBP- -12, ril 17 198b, r C nelu eP al nat Deels en o EP, LEP- - , A eust , 198 ; 1 L P-6 -3 F vem 6, I

~

CL -8'-12, ver.b 5,  ; Pa tal Miti 1 E*c ier: ), P- - , P.ay 5 '999: 1?? " rpi IIE'4 df, u. s s . ----n, u.--w .a u.

~

W ;%

'M,,'

, , ^i zussar a i

t Q-

2. The NRC has subsequently found that:

-t i

A. The application for amendment filed jointly by LILCO and the ,

Long-Island' Power Authority (LIPA or the licensee), dated p

D June 28, 1990, addressing transfer of ownership-and ,

?

responsibility for the facility from LILCO to LIPA, complies. -

with the standards and requirements of the Act and the Commission's rules and regulations set.forth in 10 CFR  ;

Chapter-Il with-B.

The facility will be maintained by the application, the provisions of the act, the regu1 LIPA-in conformity'ations:

of the Commission, and the terms of this defueled facility. '

operating licenses.

C. There is ree'sonable assurance: (i) that the activities .;

[ authorized by this defueled facility operating license can .

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be conducted without endangering the health and safety of.

the public, and (ii) that such activities will be conducted 4 in compliance with the Commission's regulations set forth-.in 3 M

10 CTR Chapter Il D. The licensee is technically qualified to engage in the activities authorized by this defueled facility operating license.in accordance with the commission's regulations set g forth in 10 CTR Chapter I; E. The licensee has satisfied the applicable provisions of 10 l

CFR 140, " Financial Protection Requirements-and Indemnity Agreements" of the Commission's regulations;-

-i F. = The issuance of this defueled facility operating license will not be inimical to the common: defense and security;or' H

, to the health and-safety of.the'public;-

.1, G.- The issuance of the defueled" facility operating _ license is '

in accordance with 10 CFR Part 51 of the Commission's '

m regulations and.all applicable requirements have been satisfied;

.- I. The receipt, possession, and use of source, byproduct.and special. nuclear material as ag?.horized by this defueled facility operating license will be in accordance with the a Commission's regulations in 10 CFR-Parts 30, 40, and 70.

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$MBERT B 4 M The shoreham DSAR, USAR and Environmental Report as i supplemented and amended were originally prepared and )

docketed before the Commirsion by LILCo. In conjunction with the transfer of thi', Defueled racility operating- l License, the licensee hereby assumes responsibility for these documents, including supplements and amendments.

thereto, in accordance with the Commission's regulations.

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(3) pursuant to the Act and 10 CPR Parts 30, 40, and 70, to possess, any byproduct, source and special nuclear material  ;

as sealed neutron sources for reactor startup, sealed neutron sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required.

t (4) Pursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive, possess and use in amounts as required any byproduct, source or spetal nuclear material without restriction to chemical er physical form, for sample analy' sis er instrument calibration er associated with .

t radienctive, apparatus or coeponents; and i (5) Pursuant to the Act and 10 CFR Parts 30, 40, and 70, to posses nuclear s;but not separate, atorials such as ==y kg, byproduct produced andcperation by the special of the iacallty.

  • g... y,,,,;g, 3,g C. This 3deense shall be deemed to contain and is subject to the certitions specified in the Commission's reevlatteres set forth it ,

i 10 CFR Chapter I and 17 subject to all applicable provisions of I the Act and te the rules, reculatters and orders of the Commissic :

row or hereafter in affects and is subject to the additional  !

conditier.c incorporated belows (1) Maximum Pewer Level The licenses is not autherized to opere.te he facility at any core power 3evel.

(2) Techrieel Soecifiestices and Envircercetal Preteettoo Plan The Technical Specifications centained in Appendix A and the '

i Fr.vironmental Protection Plan contained in Apperdix 3, are l hereby incorporated into this license. The licensee shall maintain the facility in accordance with the Technical Specifications and the Environmental Prctection Plan.

(3) - 5 :;ise-.o. so vosean nre ;;;.rt:1 t: i;;;; Fuel in the Roseter vessel c>%

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The licensee shall not place any fuel assemblies

in the reactor vessel,with;;; tr.; prier meerevel a* "-- *^-**

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D. The licensee shall implement and maintain in effect all I provisions of the approved fire etection program op described l

.[gherejj;;%s f in thl eFire Wasards Analysis Repor and the Defueled Safety {

Analysis Report for the facility and as approved in the SER date, i 4/81 and Supplaments 2 dated 2/s2 and 9 dated 12/88, subject to  !

the following provisions The licensee may make changes to the approved fire protection proeram without prior approval of the commission only if these changes would not adversely affect the abilit I L

to maintain the fuel in the Spent Fuel pool in a safe l 4

condition in the event of a fire. I h

E. The licensee shall fully implement and raintain in effect all i provisions of the Commission-approved physical scrurity, ruard i traintne and qualification, and safeeuards contineer.cy plans includine amendments made pursuant to provisions et the ,

Hiscellaneeus Amendments and Search Requirements revisions to 10 l CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 1 50.90 and 10 CFR 50.54(pl. The plans, which contain Safeeuards Inferr.ation protected under 10 CFR 73.21, are entitled: "Shorehat l Nuclear rower Station Security Plan For Fuel Storase in the Spent i ruel Pec1,* as submitted January 5, 1990s the "Shoreham Nuclear l Pcwer Statier cuard Trainine and Qualification Plan,* with

' revistor.r submitted throush Decen.ber 14,196t and "6hercham J t

h Nuclear Power Station Safeeuards Contingency Plan," with revistens submitted through May 13, 1988. Channes n. ate in L

accordance with 10 CTF 73.55 shall be implemented in accordance 3 i

with the schedule set forth therein. . l F. Except as otherwise provided in the' Technical Specifications er Envirer.n. ental Prctection PJan, the licersee shall report any 4

violations of the requirements contained in Secticn 2.C of thir license in the following mannert initial nctification shall be made within twenty fevr (241 hours0.00279 days <br />0.0669 hours <br />3.984788e-4 weeks <br />9.17005e-5 months <br /> to the NRC operations Center via the Emereeney Notification System with written followup within 30 days in acccrdance with the procedures described in 10 CTR 50.73 (b), (c), and (e) . -

c. The licensee shall have and maintain financial protection et suet type and in such ameunts as the Cornission shall require in

, accordance with Section 170 cf the Atomic Energy Act of 1954, as amended, to cover public liability claims.

M. This license supersedes Tacility Operatine License No. NPT-26, dated July 3, 1985.

< $ 't%e Shnekam Fles Hn.sds heely ;.t Rep,t was reis te nils f tft arid kV LILLO In

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litensee kereby sssw e s t*Jp,slib ili+g for at J e w , .s t .

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1. This license is effective as of the date of issuance and shall l expire at midnicht en April 13, 2013.

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FCR THE NUCLEAR ktCULATORY COMM23820N Thomas E. Murley, Director Office cf Nuclear Roseter Etrulation i

l Attachments:  !

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1. Appendix A - Technical specificatiens (HURIG-2317)
2. Appendix B - Environnental  ;

Protection FILn l Date of :ssuances t t

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