ML20078S472
| ML20078S472 | |
| Person / Time | |
|---|---|
| Site: | 05000580 |
| Issue date: | 02/15/1995 |
| From: | Reynolds N WINSTON & STRAWN |
| To: | Foster R, Marguliew M, Shon F Atomic Safety and Licensing Board Panel |
| References | |
| CON-#195-16371 OL, NUDOCS 9502240169 | |
| Download: ML20078S472 (6) | |
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. WINSTO.N & STRAWN DDCKETED USNPC FAEDERICK H wpNSTON neu tassi 1400 L STREET. N W CHecaoo office WASHINGTON. D.C. 20005 3502 M wff? MCKER DRNE SILAS H STRAWN0891-19461 cmcaoa stumois aoeoi 95 FEB 16 P3 G6 ~ aa-o (202) 371 5700 NFW YORK OFFICE FACSIMLE (202) 3714950 us WATER SimfET NICHOLAS S. REYNOLDS O f. r:
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O C(';* , msi ano nao (202) 371 5717 February 15, 1995 Morton Margulies, Esquire Adm. Judge Frederick J. Shon Chairman, Atomic Safety and Atomic Safety and Licensing Licensing Board Board U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555 Adm. Judge Richard F. Foster Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: Washington Public Power Supply System (WPPSS Nuclear Project No. 3)
Docket No. 50-580-OL Gentlemen:
As you are aware, the Washington Public Power Supply )
System (" Supply System") Nuclear Project No. 3 ("WNP-3") is l
currently in deferred status in accordance with the Commission's Policy Statement on Deferred Plants (52 Fed. Reg. 38077 (1987)). l This proceeding has been in abeyance in view of the construction !
deferral. In keeping with our obligation to apprise the Licensing l Board and parties of new information potentially relevant to this l proceeding, we are providing in this letter an update to the status i of the WNP-3 project. i Previously, in my correspondence of May 17, 1994, I advised the Licensing Board and parties that the Supply System Board voted on May 13, 1994, to formally terminate the WNP-3 project (along with the similarly deferred WNP-1 project), at least in its current conception. This involved the termination of certain contract provisions related to the project between the Supply System and the Bonneville Power Administration ("BPA").
However, at that time BPA expressly agreed to assure funding for WNP-3 (and WNP-1) to continue project preservation programs and to l maintain all state and federal permits and licenses (including the !
NRC construction permits) in effect at least through January 13, (
1995.
9502240169 950215 eD ADOCK 05000500 PDR G PDR f
- V,v1NSTON & STRAWN i Atomic Safety and Licensing Board February 15, 1995 Page 2 In the time since May 1994, the Supply System has studied i alternatives for the WNP-3 project. The Supp?.y System also offered ,
the project for sale to any interested party. As of the present '
date, no new owner or alternative use for the project has been identified. >
Further, as described in the attached correspondence from i the Supply System's Managing Director to the NRC's Executive Director for Operations,l' on January 26, 1995, in accordance with '
Post-Termination Agreements with BPA, the Supply System Executive Board approved amended Fiscal Year ("FY") 1995 Budgets and related Asset Disposition Plans for WNP-3 and WNP-1. Under these plans, budgets and resources for continued preservation of WNP-3 and WNP-1 I will be reduced in a phased approach. As a result, the project preservation and maintenance programs at WNP-3 have been significantly reduced and re-directed to maximizing preservation of assets. This involves concentrating available resources on preserving equipment for re-sale.
As also described in the attached correspondence, the Supply System is moving forward with development of a Site j Restoration Plan that encompasses the WNP-3/WNP-5 site. (WNP-3 ;
shares a site with the previously cancelled WNP-5 project.) This !
Site Restoration Plan is being prepared to meet the requirements of the State of Washington Energy Facility Site Evaluation Council
("EFSEC"). It will call for demolition of structures and i restoration of the site to a level satisfying EFSEC requirements.
At bottom, the recent action of the Executive board has initiated a process that includes restoration planning and contractor selection. In parallel with this process, and prior to commencement of restoration, however, the Supply System intends to maintain federal and state licenses (including the NRC conetruction t permit) in effect. This will maximize the value of the prvject and i equipment and incidentally hold open the possibility of alternative e uses for the project -- at least for the short term. Because the Supply System intends for the immediate future to concinue to maintain the state and federal licenses in effect for WNP-3, no j action is requested of the Licensing Board at this time. At such time as the Supply System is prepared to move forward on a firm schedule with demolition and site restoration, the Supply System will take necessary steps to withdraw the operating license application and to terminate this proceeding.
l' W.G. Counsil, Managing Director, Washington Public Power Supply System, to Mr. James Taylor, Executive Director for Operations, Nuclear Regulatory Commission, dated February 3, 1995.
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' s.VINSTON & STILUVN Atomic Safety and Licensing Board February 15, 1995 Page 3 We will keep the Licensing Board apprised of any further developments on this matter.
Sincerely, E R. b =
Nicholas S. Reynolds
/ Counsel for Applicant Enclosure cc: Service List ,
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WASHINGTON PUBLIC POWER SUPPLY SYSTEM l
- 70. ses 9ss . 3000 Geory washingon mv
- Richtend, washinvan 993s2-096s . (sopa 372 5000 1
February 3,1995 ()gjggg i
GO1-95-0004 .
GO3-95-0026 '
Docket Nos. 50-460 and 50-508 '
Mr. James M. Taylor Executive Director for Operations l U.S. Nuclear Regulatory Commission !
Washington, DC 20555
Dear Mr. Taylor:
I
Subject:
TERMINATION OF WASHINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECTS NOS.1 AND 3 ,
1 In a letter of May 20,1994, I informed you that the Washington Public Power Supply System l
(" Supply System") Board of Direemrs voted on May 13, 1994, to formally terminnes the !
pamally completed, and previously deferred, Supply System Nuclear Projects Nos. 1 ("WNP-1 and 3 ("WNP-3'), at least in their current cW nis action resulted in terminannn of l contract provisions octween the Supply System and the "-.ir.ceille Power Administration l
("BPA") for the two projects.
At that time, BPA agreed to assure funding, at least through January 13, 1995, for WNP-1 and >
WNP 3 project preservation programs and maintenance of all state and federal permits and <
licenses in effect. His allowed the Supply System to study possible altamatives for completion, ,
use, or disposition of the projects, while maintaining them in a deferred status consistent with the NRC's " Policy Statement on Deferred Plants' (52 Fed. Reg. 38,077 (1987)). :
Since May 1994, the Supply System has studied altematives for the projects, including the ;
concept of completion of WNP-1 to burn mixed-oxide fuel made from the Department of Energy's weapons grade plutonium stockpile? The Supply System also offered the WNP-1 y j
and WNP 3 projects for sale to any interested party. As of the present date, no new owner or l
alternative use for these projects has been identified. l l
i V nis wiug is discussed in the U.S. Department of Energy Plutonium Disposition Study, Technical Review Committee Report, July 2,1993 (two volumes). Sar AL10
" Notice ofIntent to Prepare a Programmanc Environmental Impact Statement for Storage j and Disposition of Weapons-Usable Fissile Matenala,' U.S. Department of Energy, '
59 Fed. Reg. 31985 (June 21,1994).
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1 i .ay ' ; l 9
Mr. James M. Taylor TERMINATION OF NUCLEAR PROJECTS NOS.1 AND 3 Page 2 i
The Supply System and BPA. previously executed WNP-1 and WNP-3 Post-Termination Agreements, effective June 14,1994. 'Ihe Post-Termination Agreements required the Supply System to prepare amended budgets for each of the two projects, to prepare Project Disposition )
Plans, and to cr==== ace asset disposition activities after January 13,1995, in the event that the ,
projects had not been redefined or sold in their antaraty as NRC-licensed famlirien prior to that date. Accordingly, on January 26,1995, the Supply Systesa Executive Board approved amandad '
Fiscal Year (*FY') 1995 Budgets and the related Asset Disposition Plans for WNP-1 and WNP-3. The WNP-1 and WNP-3 amended FY-95 Budgets provide for the transitinet of the ,
WNP-1 and WNP-3 projects from Plant Preservation Programs (iA, " Deferred Status") to Terminanon Programs (albeit on different schedules).
Under these plans, budgets and resources for continued pstion of WNP-1 and WNP-3 will be reduced in a phased approach that maximtzes preservanon of assers. At WNP-3, the project preservation and maintenance program commitments, effective imrrwriintely, will be sigmficandy reduced and re-directed to that end. The Supply System wil1 concentrate its resources primarily .
on preserving the equipment for re-sale by maintaming storage environments. Maintenance will l no longer be focused on equipment types (n, maintaining manufacturers' recommendations) or on ultimate licensability of the project.
At WNP-1, storage environments will be preserved and maintenance of equipment by type will continue, although the latter often on a reduced f% i.cy. Raeme commerw*mant of l
demolition and asset sales at the WNP-1 site at Hanforti are et upon lessons learned at WNP 3, qualification of code equipment will be maintainad longer at WNP-1. One incidental }
benefit of this plan, in addition to cost effectiveness, is that the viability (including licensmg viability) of the WNP-1 project as a nuclear unit is maintained for a period of time into the i future. :
In parallel with the Asset Disposition Plans, the Supply System has also been developing a revised comprehensive Site Restoration Plan for WNP-1 and WNP-3, as well as for the previously termmated Supply System Nuclear Project Nos. 4 ("WNP-4") and 5 ("WNP-5"). The i
Site Restoration Plan is being prepared to meet the requirements of the State of Washmgton Energy Facility Site Evaluation Council ("EFSEC") and is epm to be submitted to EFSEC I in the near future. The Site Restoration Plan will call for demolition of structures and restoration of the sites to a level satisfying EFSEC requirements. Initial restoration will occur l at the WNP-3/5 site. l The Supply System has begun an approximately six month process which includes the reducj staffing and disposition of assets at WNP-3, as described above, and selection of a contractor i for the demolition and site restoration activities at WNP-3/5. Work will begin at WNP-3/5 as soon as a contractor can be selected and mobilized. l n
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4 Mr. James M. Taylor TERMINATION OF NUCLEAR PROJELT NOS.1 AND 3 Page 3 Site restoration at the WNP-1/4 site will not begin until after experience has been gained at WNP-3/5 and confidence in the demolition pmcess has been established. 'Ihere is, thus far, no schedule for darnalitian at WNP-1/4. As previously desenbed, preservation will enannne on the WNP-1 project to the extent posable to maximize value of the assets, and incidendy will preserve the WNP-1 project for posable alternative uses.
In view of all of the above, from the perspective of the Deferred Plant Policy Statement, both the WNP-1 and WNP-3 projects are being trnamirianad towards final terininstian status.
However, the Construction Permits (" cps") remain in effect and, in order to maximize the value of the projects and the equipment prior to site restoration, the Supply System is not yet l requesung their termination. 'Ihe Supply System will retam the CP for each project until the commencement of site restoration. For WNP-3 this could begm later this year. For WNP-1 l' this will occur on a later schedule still to be determmed. :
We will keep you appnsed of further developments on this subject, and intend to provide for your information a copy of the revised Site Restoration Plan when finalimd and submitted to EFSEC. Should you have any questions or desire further informanon, the Supply System point of contact for this matter is Mr. D.W. Coleman, (509) 377-4342. ;
Very truly yours, )
W.G. Counsil l Managmg Director !
(Mad Drop 387) l l
l cc: WT Russell - Director, NRR ;
U Callen - NRC RIV '
KE Perkins, Jr. - NRC RIV, Walnut Creek Field Office MM Mendonca - NRR Document Control Desk - NRC NS Reynolds - W*mston & Strawn DL Williams - BPA/399 WL Bryan, Washington Water Power RE Dyer, Portland General Electric JR Lauckhart, Puget Sound Power & Light DP Steinberg, PacifiCorp l
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