ML20078S482
| ML20078S482 | |
| Person / Time | |
|---|---|
| Site: | Washington Public Power Supply System |
| Issue date: | 02/15/1995 |
| From: | Reynolds N WINSTON & STRAWN |
| To: | Bloch P, Bright G, Schink D Atomic Safety and Licensing Board Panel |
| References | |
| CON-#195-16372 OL, NUDOCS 9502240175 | |
| Download: ML20078S482 (6) | |
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$7s warta smEET NICHOLAS S. REYNOLDS 00Uk f
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(202) 371-5717 irm sum February 15, 1995 t
Peter B.
Bloch, Esquire David R. Schink Chairman, Atomic Safety and Cepartment of Oceanography Licensing Board Texas A&M University U.S. Nuclear Regulatory College Station, Texas 77843 Commission Washington, D.C.
20555 Mr. Glenn O. Bright Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C.
20555
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Washington Public Power Supply l
System (WPPSS Nuclear Project No. 1) Docket No. 50-460-OL i
Gentlemen:
In accordance with the October 14, 1993, Memorandum and Order in the captioned proceeding, the Washington Public Power Supply System (" Supply System") hereby submits its quarterly status report regarr".ng the deferred WNP-1 project.
As you are aware, WNP-1 is currently in deferred status in accordance with the Commission's Policy Statement on Deferred l
Plants (52 Fed. Reg. 38077 (1987)). We advised the Licensing Board and parties in correspondence of May 17, 1994, that the Supply System Board voted on May 13, 1994, to formally terminate the WNP-1 project (along with the similarly deferred WNP-3 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-1 (and WNP-3) to continue project preservation programs and to maintain all state and federal permits and licenses (including the mh([
9502240175 950215 PDR ADOCK 05000460 G
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WINSTON & STILMVN Atomic Safety and Licensing Board February 15, 1995 Page 2 NRC construction permits) in effect at least through January 13, 1995.
As we have discussed in previous status reports, in the time since May 1994, the Supply System has studied alternatives for the WNP-1 project, including the concept of completion of WNP-1 to burn mixed-oxide fuel made from the Department of Energy's weapons grade plutonium stockpile.l' The Supply System also offered the WNP-1 and WNP-3 projects for sale to any interested party.
As of the present date, no new owner or alternative use for the project has been identified.
As described in the attached correspondence from the Supply System's Managing Director to the NRC's Executive Director for Operations,A' in accordance with Post-Termination Agreements with BPA, on January 26, 1995, the Supply System Executive Board approved amended Fiscal Year ("FY") 1995 Budgets and related Asset Disposition Plans for WNP-1 and WNP-3.
Under these plans, budgets and resources for continued preservation of WNP-1 and WNP-3 will be reduced in a phased approach that maximizes preservation of assets.
Under these plans, the viability of the WNP-1 project as a nuclear unit will be maintained for a period of time.
In particular, while the Supply System will be developing site restoration plans for WNP-1 (which shares a
site with the previously canceled WNP-4 project), the Supply System does not intend to terminate the WNP-1 construction permit, or withdraw the operating license application, until it is prepared to commence demolition and site restoration at the WNP-1/4 site.
This is not yet scheduled and will not occur until after demolition and restoration experience is gained at WNP-3 (which shares a site with the previously canceled WNP-5 project).
In the meantime, as described in the attached correspondence, preservation of the WNP-1 project will continue to the extent possible to maximize the value of the assets.
This incidentally will preserve the project for possible alternative uses.
t At bottom, because the Supply System intends for the immediate future to continue to preserve WNP-1, to maintain the l'
See in particular my letter to Ms. Nina Bell, Northwest Environmental Advocates, served on the Licensing Board and parties on June 14, 1994.
A' 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.
WINSTON & STILUVN Atomic Safety and Licensing Board February 15, 1995 Page 3 state and federal licenses in effect, and to hold open the possibility of alternative uses for the project, no action is requested of the Licensing Board at this time.
We will keep the Licensing Board apprised of any further developments on this matter.
Sincerely, KQN
'va.
% Nicholas S. Reynolds
,/ Counsel for Applicant Enclosure cc:
Service List l
1 1
WASHINGTON PUBLIC POWER SUPPLY SYSTEM P.o. Box 968
- 3000 George washmgton Way
- Richland. Washington 99352-0968
- 1509)372 5000 February 3,1995 f-[EB () 9199s GOl-95-0004 GO3-95-0026 Docket Nos. 50-460 and 50-508 Mr. James M. Taylor Executive Director for Operations U.S. Nuclear Regulatory Commission Washington, DC 20555
Dear Mr. Taylor:
TERMINATION OF WASHINGTON PUBLIC POWER SUPPLY SYSTEM
Subject:
NUCLEAR PROJECTS NOS.1 AND 3 In a letter of May 20,1994, I informed you that the Washington Public Power Supply System
(" Supply System") Board of Directors voted on May 13, 1994, to formally terminate the partially completed, and previously deferred, Supply System Nuclear Projects Nos. 1 ("WN
' Utis action resulted in termination of and 3 ("WNP-3"), at least in their current concept.
contract provisions 'octween the Supply System and the Bonneville Power Administration
("BPA") for the two projects.
f 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 an licenses in effect. This allowed the Supply System to study possible alternatives for completion, use, or disposition of the projects, while maintaining them in a deferred status consistent w the NRC's " Policy Statement on Deferred Plants" (52 Fed. Reg. 38,077 (1987)).
Since May 1994, the Supply System has studied alternatives for the projects, including th concept of completion of WNP-1 to burn mixed-oxide fuel made from the Department o Energy's weapons g-
"e plutonium stockpile.l' The Supply System also offered the WNP-1 and WNP-3 project. i *r sale to any interested party. As of the present date, no new owner or alternative use for these projects has been identified.
This concept is discussed in the U.S. Department of Energy Plutonium Disposition V
Sm abin Study, Technical Review Committee Report, July 2,1993 (two volumes).
" Notice of Intent to Prepare a Programmatic Environmental Impact Statement for Storage and Disposition of Weapons-Usable Fissile Matenals," U.S. Department of Energy, 59 Fed. Reg. 31985 (June 21,1994).
[..
Mr. James M. Taylor TERMINATION OF NUCLEAR PROJECTS NOS.1 AND 3 i
Page 2 The Supply System and BPA previously executed WNP-1 and WNP-3 Post-Termmation Agreements, effective June 14,1994. The Post-Termination Agreements required the Supply System to prepare an=wlad budgets for each of the two projects, to prepare Project Disposition Plans, and to commence asset disposition activities after January 13,1995,in the event that the projects had not been redefined or sold in their entirety as NRC 1'mami facdities prior to that date. Accordingly, on January 26,1995, the Supply System Executive Board approved amended Fiscal Year ("FY") 1995 Budgets and the related Asset Disposition Plans for WNP-1 and WNP-3. 'Ihe WNP-1 and WNP-3 amended FY-95 Budgets provide for the tunsition of the WNP-1 and WNP-3 projects from Plant Preservation Programs (iA, " Deferred Status") to Termination Programs (albeit on different schedules).
Under these plans, budgets and resources for continued preservation of WNP-1 and WNP-3 will be reduced in a phased approach that maximizes preservation of assets. At WNP-3, the project preservanon and maintenance pmgram commitments, effective immediately, will be significandy reduced and re-directed to that end. 'Ihe Supply System will corcentrate its resources prunarily on preserymg the equipment for re-sale by maintaining storage environments. Maintenance will no longer be focused on equipment types (g&, maintaining manufacturers' recommendations) or on ultimate licensability of the project.
l At WNP-1, storage environments will be preserved and maintenance of equipment by type will l
Her== commencement of continue, although the latter often on a reduced frequency.
demolition and asse; sales at the WNP-1 site at Hanford are dependent upon lessons learned at WNP-3, qualific tion of code equipment will be maintained longer at WNP-1. One incidental benefit of this plan, in addition to cost effectiveness, is that the viability (including licensing viability) of the WNP-1 project as a nuclear unit is maintained for a period of time into the future.
In parallel with the Asset Disposition Plans, the Supply System has also been developing a j
revised comprehensive Site Restoration Plan for WNP-1 and WNP-3, as well as for the previously terminated Supply System Nuclear Project Nos. 4 ("WNP-4") and 5 ("WNP-5"). The Site Restomtion Plan is being prepared to meet the requiremerits of the State of Washington Energy Facility Site Evaluation Council ("EFSEC*) and is expected to be submitted to EFSEC in the near future. 'Ihe Site Restoration Plan will call for demolition of structures and restoration of the sites to a level satisfying EFSEC requirements. Initial restomtion will occur at the WNP-3/5 site.
'Ihe Supply System has begun an approximately six month process which includes the reduced staffing and disposition of assets at WNP-3, as described above, and selection of a contractor 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.
.1..
Mr. James M. Taylor TERMINATION OF NUCLEAR PROJECTS 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 process has been established. There is, thus far, no rhMata for demolition at WNP-1/4. As previously desenbed, preservation will continue on the WNP-1 project to the extent possible to maximize value of the assets, and incidently will preserve the WNP-1 project for possible alternative uses.
In view of all of the above, from the pmgaive of the Deferred Plant Policy Statement, both j
l the WNP-1 and WNP-3 projects are being transitioned towards final termination status.
l 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 requesting their termmation. 'Ite Supply System will retam the CP for each project until the j
commencement of site restoration. For WNP-3 this could begin later this year. For WNP-1 l
this will occur on a later schedule still to be determmed.
l We will keep you apprised of further developments on this subject, and intend to provide for your information a copy of the revised Site Restoration Plan when fimli=i and submitted to EFSEC. Should you have any questions or desire further information, the Supply System point of contact for this matter is Mr. D.W. Coleman, (509) 377-4342.
Very truly yours,
/
W.G. Counsil Managmg Director (Mail Drop 387) cc:
WT Russell - Director, NRR U Callen - NRC RIV KE Perkins, Jr. - NRC RIV, Walnut Creek Field Office MM Mendonca - NRR t
Document Control Desk - NRC NS Reynolds - Winston & Strawn DL Williams - BPA/399 WL Bryan, Washington Water Power l
RE Dyer, Portland General Electric
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JR Lauckhart, Puget Sound Power & Light l
DP Steinberg, PaciSCorp
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