ML20071D041

Forwards NFS Confirming Title to Spent Fuel Assemblies Stored at West Valley Facility in Response to 830302 Request

ML20071D041
Person / Time
Site:	Point Beach
Issue date:	03/03/1983
From:	Fay C WISCONSIN ELECTRIC POWER CO.
To:	Clark R, Harold Denton Office of Nuclear Reactor Regulation
References
TAC-52693, TAC-52694, NUDOCS 8303090130
Download: ML20071D041 (5)

Text

lHsconsin Elecinc mm coum 231 W. MICHIGAN, P.O. BOX 2046, MILWAUKEE, WI 53201 March 3, 1983 Mr. H. R. Denton, Director Office of Nuclear Reactor Regulation U. S. NUCLEAR REGULATORY COMMISSION Washington, D. C. 20555 Attention: Mr. R. A. Clark, Chief Operating Reactors Branch 3 Gentlemen:

DOCKET NOS. 50-266 AND 50-301 CONFIRMATION OF LICENSE INTERPRETATION POINT BEACH NUCLEAR PLANT, UNITS 1 AND 2 On November 1, 1982, Wisconsin Electric submitted a letter discussing our interpretation of Facility Operating Licenses DPR-24 and DPR-27 for the Point Beach Nuclear Plant, Units 1 and 2, as they relate to spent fuel storage. Specifically, we stated that under the circumstances set forth in the November 1 letter, Facility Operating Licenses DPR-24 and DPR-27 permitted the return to and storage of Point Beach-generated spent fuel at the Point Beach Nuclear Plant. We requested that you confirm this interpretation.

On March 2, 1983, Mr. Colburn of your staff requested that we provide a copy of a May 6, 1977 letter from Nuclear Fuel Services, Inc. to Wisconsin Electric which confirms that the title to the spent fuel assemblies from the Point Beach Nuclear Plant stored at the West Valley facility remained with Wisconsin Electric Power Company. A copy of the letter agreement is attached. We understand that after receipt of this letter and attachment, the Nuclear Regulatory Commission will notify Wisconsin Electric that our interpretation of the Point Beach Nuclear Plant Facility Operating Licenses is correct and that we may receive at the plant returned Point Beach-generated spent fuel assuming veher regulations and requirements governing the shipment of spent fuel are met.

Very truly yours, GCd y B303090130 830303 , U PDR ADOCK 05000266 Vice President - Nuclear Power P PDR C. W. Fay Attachment Copy to NRC Resident Inspector

. , . Nuctsar Fuel Services, Inc. 6000 Executivo Boulevard, Suito 600, Rockvillo, Maryland a 20852

.'3 Subsidiary of Octly oil Company Ralph W. Deuster (300770 5510 msa,a .

May 6,1977 Wisconsin Electric Power Company ',

231 West Michigan Milwaukee, Wisconsin 53201 .

Attention: Mr. Sol Burstein, Executive Vice President

Dear Mr. Burstein:

( On September 20,1976, Nuclear Fuel Services, Inc. (NFS) notified Wisconsin '

Electric Power Company, Milwaukee, and Wisconsin Michigan Power Company,

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Appleton, Wisconsin (hereinafter referred to collectively as "the Customer") that it

- was withdrawing from the reprocessing business, that NFS' contract for repro-cessing with the Customer was terminated as a matter of law and, in addition, NFS exercised its rights to terminate under various specific provisions of the contract.

Accordingly, it is recognized that it will not be possible for NFS to reprocess the Customer's spent fuel. The purpose of this letter is to set forth the agreement' reached between NFS and the Customer with respect to services which may be provided by NFS now or in the future to the Customer.

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NFS and the Customer hereby agrec as follows:

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(1) NFS will lease to the Customer two NFS-4 casks under the terms and conditions set forth in NFS' proposal of February 1,1977 (The " Cask Lease Proposal"), except as modified' by the Customer's letter to NFS dated April 22,1977. ,

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(2) The Customer presently has in storage at the West Valley plant 120 spent fuel assemblics discharged from the Customer's Point Beach Reactors .

l (the stored assemblics). NFS will continue to store the stored assemblies in accordance with the following terms and conditions:

b (a) The Customer shall pay NFS a charge of $100 for cach assembly

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comprising the stored assemblics for cach month or fraction ilicrcof that cach assembly remains in storage at West Valley commencing on January 1,1977; provided that such charge may be adjusted to reflect the impact of changes in regulatory requirements subsequent to the execution date of this agreement which directly affect the.

cost of storing the stored assemblics. Paynient shall be due and payable within 30 days of the receipt by the Customer of an NFS invoice which may be rendered monthly. An assembly shall be l

deemed removed from storage for purposes of this payment provision on the day that it is loaded into a spent fuel shipping cask l

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for purposes of shipment off site.

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.y Nu:Isar Fu:1 S rvi:n, Inc, Wisconsin Electric Fower Company

/ May 6,1977 Page Two (b) NFS 'shall endeavor to maintain the regulatory authorizations necessary to continue to store the stored assemblics. It is recognized, however, that NFS may have to request the Customer to remove the stared assemblies (a " request for removal")if regulatory authorizations cannot be maintained or if the New York State Energy Research and Development Authority (NYSERDA) icquests NFS to have the stored assemblics rc toved in connection with NYSERDA's disposition of the site prior to or upon the expiration of the lease between NFS and NYSERDA on December 31,1980. NFS' request for removal shall specify the date when removal shall commence which shall be no loss than thirty days after the date of the request for removal. NFS agrees to notify the Customer as soon as NFS is notified by NYSERDA with respect to its intention regarding continued storage of spent fuel at West Valley and to keep

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the Customer periodically informed of any developments which might affcet the status of the stored assemblics. The Customer agrees to remove the stored t.ssemblics from West Valley com-mencing on the date specified in the request for removal. NFS shall

. load the assemblics into shipping casks furnished by the Customer.

In the event that the Customer is required, pursuant to this Article, *

(- to remove its spent fuel from storage at West Valley, NFS agrees to

. use its best efforts to load the Customer's fuel assemblics promptly

.(.x upon delivery by the Customer of a shipping cask for such removal.

Further, in such event, NFS agrees to provide the Customer the right of first refusal on the use of all of NFS' spent fuel shipping ,

-casks for purposes of such removal. NFS shallprovide a proposal for such cask use at the same time notico is given for removal of fuel.

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'Ihe Customer must exercisc such right of refusal on cask use within 30 days of receipt of such proposal. ,

(c) Title to the stored asserablies'shall remain at all times in the Customer. Risk of loss'or damage to the stored assemblics shall be the responsibility of NFS until the stored assemblics are loaded into a shipping cask end available for shi[..nent off site. The Customer j agrecs that NFS is not required to maintain insurence on the stored '

l assemblics while in storage at West Valley.

l (d) This agreement for storage may be modified by NFS to reflect a change in ownership or control of the West Valley site, provided that NFS shall at all times exercise reasonable efforts to protect the rights of the Customer under this Agreement.

(c) NFS will maintain as long as the stored assemblics arc in storage at West Valley nn agreement of indemnification as contemplated by Section 170 of the Atomic Energy Act of 1954, as amended, and

(- Nuclear Liability Insuranco in the amount of $20,000,000 from the l

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. . e Nuclear Fuct Services, Inc.

Wisconsin Electric Power Company May 6,1977 Page Three

/ Nuclear Energy Liability-Property Insurance Association (NElePIA) and/or the Mutual Atomic Energy Licbility Underwriters (MAELU)in such amount and in such form as will meet the financial protection-requirements of the NRC pursuant to Section 170 of the Atomic Energy Act of 1954, as amended. NFS hereby waives any claims against the Customer for nuclear or non-nuclear property damage to the West Valley Facility or the fuel stored therein., .

(3) NFS will make available certain services relating to the nuclear fuel cycle to the Customer on a " preferred customer basis." Services presently availabic ("present services") include the utilization of two NFS-4 spent fuel shipping casks for shipping the Customer's spent fuel; UF6cylinder cleaning and inspection; and scrap recovery. Services covered by this agreement also include any additional services relating to i the. nuclear fuel cycle that NFS, in its sole discretion, may provide to the utility industry in the future (" future services"), such as spent fuci i

storage. The Customer may exercise its rights under this agreement to acquirc "present services" and " future services" during a term com-mencing on the date of acceptance hereof by the Customer through December 31,1989. NFS' obligation to provide such services pursuant to this agreement shall be limited to the period or periods of time during such term that NFS may elect, in its sole discretion, to engage in such activities, subject to the terms of any agreement for specific services k that may be entered into pursuant to this agreement.

For purposes of this agreement " preferred customer basis" shall mean: ,

(a) In the case of "present services," the Customer may request NFS to provide se.:h services under terms and conditions, including price,

'which are at least as favorable as those being offered to others in

, the same calendar qua-ter as the request is made by the Customer.

N In the event no such services have been offered in the same calendar quarter, the last offer prior to that period shall be used subject to reasonable adjustment for cost escalation, including t,ut not limited to the impact of regulatory requirements. Performance by NFS .

shall be consistent >vith prior commitments.

-(b) In the case of " future services," NFS grants the Customer a right of refusal to contract for such services in advance 'of all other customers except with regard to rights for the possible use of 40 storege spaces granted to Dairyland Power Cooperative. The right of refusal shall continue in effect for a period of nincty (90) days -

from the date which NFS notifics the Customer that such services are to be available. Said notification shall include the terms and condition;, including price, for providing such services which shall be no less favorable than those which will be offered to others for the same period of performance'. The above shallulso apply in the event

' that NFS offers for sale, during the term of this Agreement, any h, spent fuel shipping casks which it may presently own or subsequently acquire, providcd that such casks can accommodate the Customer's

. spent fuel.

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- Nucincr Fus! Sgrvicts, Inc.

Wisconsin Electric Power Company May G,1977

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/ (4) Acceptance of this agreement by the Customer shall constitute a release by the Customer of NFS and by NFS of the Customer and their

. respective successors or assigns from any or all liability, actions, causes of action, claims, demands of whatever kind and nature, whether now

' asserted or which may be asserted in the future, arising out of, or l connected with, the performance or nonperformance of the Agreemer.t for Chemical Processing between NFS and the Customer dated October IG,1974, and any amendments thereto.

(5) This agreement shall bind and inure to the benefit of the parties hereto and/or their successor entitics. .

If the foregoing is acceptable to the Customer, please' have this Agreement

( executed by an authorized official of the Customer.

Sincerely yours,

. / f h)

( Ral , W. Deuster RWD:jnw .

Accepted by:

Exqcutive Vice President - WISCONSIN ELECTRIC POWER COMPANY Vice President - Nuclear Plant - WISCONSIN MICIIIGAN POWER COMPANY Titic June 23, 1977 Date

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