ML20094Q055

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Application for Amend to License DPR-4,transferring All mgt- Related Responsibilities for Plant from SNEC to Gpun.Revised TS Encl
ML20094Q055
Person / Time
Site: Saxton File:GPU Nuclear icon.png
Issue date: 11/21/1995
From: Kuehn G
SAXTON NUCLEAR EXPERIMENTAL CORP.
To:
NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20094Q058 List:
References
6575-952-742, C301-95-2030, NUDOCS 9512010033
Download: ML20094Q055 (35)


Text

SAXTON NUCLEAR EXPERIMENTAL CORPORATION GENERAL PUBLIC UTILITIES SYSTEM M Jersey Central Power & Ught General PuWic Utilities Nuclear Corporation MAluNG ADDRESS:

one Upper Pond Road g "8 Metropolitan Edison Coenpany Persippeny, NJ 07054

[p .

\ " *' November 21, 1995 C301-95-2030 6575-952-742 U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, D.C. 20555

Subject:

Saxton Nuclear Experimental Corporation Operating License No. DPR-4 Docket No. 50-146 License Transfer and Amendment Request for Inclusion of GPU Nuclear as a Licensee Gentlemen, Saxton Nuclear Experimental Corporation (SNEC), on behalf of itself and GPU Nuclear Corporation (GPU Nuclear), hereby files the enclosed application to transfer from SNEC to GPU Nuclear all management-related responsibilities for the Saxton Nuclear Experimental Facility (Saxton), and to amend the Saxton 1 license accordingly. Ownership and financial responsibilities for Saxton will  !

remain with SNEC. The purpose of the requested transfer and amendment is to make GPU Nuclear directly responsible as licensee for activities it is already performing at Saxton as a contractor. This will enable Saxton, without the extra step of contracting, to take direct advantage of the nuclear experience represented by GPU Nuclear's technical and managerial staff, thus strengthening the overall management and control of Saxton's maintenance, l characterization, decontamination, dismantlement and ultimate decommissioning.

The enclosed application, together with its attachments, includes justifications for the requested transfer and amendment, a no significant hazards consideration analysis, and proposed mark-ups to the Saxton license.

This application supersedes the SNEC Technical Specification Change Request (TSCR) No. 56 and its Addendum, respectively dated June 2 and June 23, 1995. l The organizational aspects of TSCR No. 56 are wholly superseded and mooted by i the enclosed application. i The withdrawal of TSCR No. 56, and its addendum also renders moot the  !

Commission's Request for Additional Information dated October 5,1995 (TAC No. l M92457), which related to organization matters. In any event, in as much as the enclosed application seeks the formal transfer to GPU Nuclear of  !

management responsibilities under the Saxton license and makes clear that all individuals in the Saxton organization will be employees of a licensee, GPU Nuclear, the application fully addresses and ameliorates the concerns raised in the Commission's Request. Under the arrangements proposed in the application, responsibilities under the Saxton license will be assigned to a licensee and not to a contractor.

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1 C301-95-2030  ;

Page 2 of 2 Also enclosed is the Certificate of Service for this request certifying

. service to the chief executives of Liberty Township and Bedford County, Pennsylvania, in which the facility is located, as well as the designated '

representative of the Commonwealth of Pennsylvania, Bureau of Radiation Protection.

Sincerely,  ;

I G. A. Kuehn Vice President i

WGH Attachments A) Certificate of Service for License Amendment Request >

B) Certificate of Concurrence C) Application for Transfer of License D) Listing of Company Directors and Officers E) SNEC/GPU Nuclear Agreement  :

F) Revised License and Appendix A '

G) Explanation of Appendix A revision cc: Administrator, Region I NRC Senior Project Manager NRR NRC Project Scientist, Region I  !

i SAXTON NUCLEAR EXPERIMENTAL CORPORATION I SAXTON NUCLEAR FACILITY t

Operating License No. DPR-4  !

Docket No. 50-146 License Transfer and Amendment Request for Inclusion of GPU Nuclear as a Licensee j i

COMMONWEALTH OF PENNSYLVANIA )  !

) SS:

COUNTY OF DAUPHIN )

This license transfer and amendment request is submitted in support of .

Licensee's request to change the Operating License No. DPR-4 for Saxton Nuclear Experimental Facility and Appendix A; the Technical Specifications . i As part of this request, proposed replacement pages for the License and Appendix A are included.

I, G. A. Kuehn, being duly sworn, state that I am the Vice President Saxton Nuclear Experimental Corporation (SNEC); that on behalf of SNEC I am i authorized by SNEC to sign, and file with the Nuclear Regulatory Commission, .

this Application to transfer management-related responsibilities for the l Saxton Nuclear Experimental Facility and to amend its facility license; that I signed this Application as Vice President of SNEC; and that the statements

made and the matters set forth therein are true and correct to the best of my ,

knowledge, information and belief.

SAXTON NUCLEAR EXPERIMENTAL CORPORATION By: gy G. A. Kuehn i Vice President, SNEC Sworn gnd Subscribed ,1.o before me  !

this (//J/ day of y'/07#m/h. ,1995. t Lf6.

N6tary Publfc Debra S d No Pubhc dy"$En@on*$pS*eNYyIN98 mm.%mamomm

ATTACHMENT A CERTIFICATE OF SERVICE FOR THE '

LICENSE AMENDMENT REQUEST 1 PAGE P

= - . . . . .- - -

l j

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION IN THE MATTER OF LICENSE N0. DPR-4  ;

SAXTON NUCLEAR EXPERIMENTAL FACILITY DOCKET NO. 50-146 l i

CERTIFICATE OF SERVICE This is to certify that a copy of the application to transfer management-  ;

related responsibilities under the license of the Saxton Nuclear, and to amend facility license No. DPR-4 has, on the date given below, been filed with  !

executives of Liberty Township; Bedford County; and Pennsylvania Department of Environmental Resources, Bureau of Radiation Protection, by deposit in the United States mail, addressed as follows: l Mr. Donald Weaver, Chairman Mr. Richard Rice, Chairman ,

Liberty Township Supervisors Bedford County Commissioners R.D. #1 County Courthouse  ;

Saxton, PA 16678 .203 South Juliana Street '

Bedford, PA 15522 Director, Bureau of Radiation Protection ,

PA Department of Environmental Resources Fifth Floor, Fulton Building .

Third and Locust Streets  ;

P.-0. Box 2063 ,

Harrisburg, PA 17120 ATTN: S. P. Maingi ,

l SAXTON NUCLEAR EXPERIMENTAL CORPORATION e

f By:

W G. A. Kuehn '

Vice President, SNEC Date: / M [ <

f //

i

I ATTACHMENT B CERTIFICATE OF CONCURRENCE OF GPU NUCLEAR CORPORATION 1 PAGE i

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

)

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l UNITED STATES OF AMERICA NUCLEAR REGULATORY COPMISSION In the Natter of )  !

Saxton Nuclear Experimental

. Corporation Docket No. 50-146 Saxton Nuclear Experimental Facility )

J CERTIFICATE OF CONCURRENCE OF

- GPU NUCLEAR CORPORATION GPU Nuclear Corporation concurs in and supports the filing by SNEC of the

" Application to Transfer Nanagement-Related Responsibilities Under License for j Saxton Nuclear Facility, and to Amend Facility License No. DPR-4". j GPU NUCLEAR CORPORATION i _

By:

R. L. Long Vice President  :

Date: ll*SN?(

i

ATTACHMENT C APPLICATION TO TRANSFER MANAGEMENT-RELATED RESPONSIBILITIES UNDER LICENSE FOR SAXTON NUCLEAR FACILITY, AND TO AMEND FACILITY LICENSE NO. DPR-4 PAGES I TO 12 l

E f

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

-In the Matter of )

)

Saxton Nuclear Experimental )

Corporation. ) Docket No. 50-146

)

Saxton Nuclear Experimental Facility)

APPLICATION TO TRANSFER MANAGEMENT-RELATED RESPONSIBILITIES UNDER LICENSE FOR SAXTON NUCLEAR FACILITY, AND TO AMEND FACILITY LICENSE NO. DPR-4 Saxton Nuclear Experimental Corporation (SNEC) is the current holder of Facility License No. DPR-4, originally issued on November 15, 1961 ("the facility license" or "the license"). The license, as amended, authorizes SNEC to possess but not operate the Saxton Nuclear Experimental Corporation Facility ("the Saxton facility" or "Saxton") in accordance with the procedures and limitations which the license sets forth. SNEC also 1.s the Saxton facility's owner, and was its operator under the facility license until Saxton terminated operations in 1972. SNEC now has responsibility under the facility license for safely managing the Saxton facility, maintaining its containment vessel and performing characterization activities in support of decommissioning.

SNEC, with the concurrence of GPU Nuclear Corporation (GPU Nuclear), hereby requests the Nuclear Regulatory Commission (NRC), pursuant to 10 CFR S 50.80, to approve the transfer to GPU Nuclear of all maintenance, characterization, decontamination, dismantlement, decommissioning and other management-related responsibilities under the facility license. Under this arrangement, ownership and all financial responsibilities relating to Saxton would remain with SNEC.

The purpose of the requested transfer is to make GPU Nuclear directly responsible as licensee for activities it is already performing at Saxton as a contractor. This will enable Saxton, without the extra step of contracting, to take advantage of the wealth of nuclear experience represented by GPU Nuclear's technical and managerial staff. This organizational change will strengthen the overall management and control of the maintenance, characterization, decontamination, dismantlement and decommissioning activities at the Saxton facility. The transfer will become effective immediately upon receipt of the NRC's approval.

Pursuant to 10 CFR 5 50.90, SNEC also requests the NRC to amend the Saxton facility license to substitute GPU Nuclear for SNEC wherever maintenance, characterization, decontamination, dismantlement, decommissioning or other management-related responsibilities are described. These are merely administrative changes implementing the transfer and are appropriate since GPU Nuclear will acquire all management-related responsibilities upon the transfer.

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Part I below sets forth the information required by 10 CiR 5 50.80 in support of the transfer to GPU Nuclear of SNEC's management-related responsibilities under the facility license. Part 11 provides other information relevant to the proposed transfer. Part III sets forth the request for the license amendment. Parts IV and V address miscellanecus matters including the effective date for the transfer and license amendment.

I. LICENSE TRANSFER INFORMATION REQUIRED BY 10 CFR S 50.80 A. Name of Transferee: GPU Nuclear Corporation B. Address: One Upper Pond Road, Parsippany, NJ 07054 C. Description of Business:

GPU Nuclear is a wholly owned subsidiary of General Public Utilities Corporation (GPU), a registered holding company. Other GPU subsidiaries involved in nuclear matters include Jersey Central Power

& Light Company (Jersey Central), Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec). The latter three companies jointly own both units of the Three Mile Island )

Nuclear Generating Station (THI) as well as all of SNEC's capital i stock. Jersey Central also is the sole owner of the Oyster Creek j Nuclear Generating Station (0yster Creek). TMI-1 and 2, Oyster Creek i and Saxton thus belong to the GPU System. GPU Nuclear was formed in 1980 in order to consolidate into a single organizational entity all technical and managerial resources of GPU System companies relating l to nuclear matters.

GPU Nuclear was organized and established for the express purpose of assuming responsibility, on behalf of the owners of GPU System L nuclear facilities and by contract with them, for the performance of the various activities required of the licensee of a nuclear facility. Shortly after its formation, GPU Nuclear was authorized by the NRC to replace Jersey Central and Met-Ed as the licensed canager of (respectively) Oyster Creek and the TMI units. Specifically, GPU Nuclear is responsible for the operation and maintenance of TMI-1 and Oyster Creek, as well as the monitoring, storage, maintenance and l

decommissioning of THI-2. GPU Nuclear is a service company which l does not own or finance any nuclear or other utility assets.

D. Incorporation. Directors and Principal Officers GPU Nuclear is a corporation organized and existing under the laws of the State of New Jersey. Its principal office is located in Parsippany, New Jersey. The names and addresses of GPU Nuclear's directors and principal officers, all of whom are citizens of the United States, are as shown at Attachment D of this document. GPU Nuclear is not owned, controlled or dominated by an alien, foreign j corporation or foreign government. GPU Nuclear is not acting as an I agent or representative of any other person.

E. Technical Qualifications Changing the authorized operator or manager of a nuclear facility has no adverse impact on safety issues so long as the authorized operator or manager is qualified from a technical and managerial standpoint.

In connection with previous transfers of responsibility within the 2

GPU System, the NRC has already reviewed GPU Nuclear's technical and managerial qualifications and found them acceptable for the TMI Units and Oyster Creek. Further, in connection with the formal restart proceeding for TMI-1, the NRC found that GPU Nuclear.had demonstrated 1 the managerial capability and technical resources to maintain TMI-2 in a safe configuration and carry out planned decontamination and restoration activities for that Unit. See Metropolitan Edison Co.

(Three Mile Island Nuclear Station, Unit 1), LBP-81-32,14 NRC 381 (1981), CLI-85-9, 21 NRC 1118 (1985). GPU Nuclear is, therefore, qualified to perform the same decommissioning-related tasks for the Saxton facility.

Additionally, GPU Nuclear personnel already are performing t characterization, maintenance, repair and modification activities at the Saxton facility under an Agreement with SNEC dated March 4, 1985 (see Attachment. E to this application). The NRC Staff has been aware ,

of GPU Nuclear's management role at the Saxton facility to this ,

point, and has on several occasions interacted directly with GPU Nuclear personnel regarding Saxton matters. The requested transfer  ;

will involve no actual change to either the management organization  !

or technical personnel engaged in Saxton's activities. When the  ;

transfer becomes effective, the GPU Nuclear employees currently ,

working on Saxton-related matters, on-site and off-site, will '

continue performing the same activities but simply will assume the formal status of licensee personnel. Further, GPU Nuclear will employ, or contract for as needed, all of the technically qualified personnel necessary to exercise responsibility for possession, '

management, use, maintenance, characterization, decontamination, dismantlement and decommissioning of Saxton. It follows that when the requested transfer becomes effective, the technical  !

qualifications of both the en-site and the off-site organizations will be at least equivalent to those currently existing.

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All of the existing functicas of the currently licensed SNEC organization are incorporated in the proposed GPU Nuclear '

organization for Saxton. The GPU Nuclear organizational structure is based upon the project concept and is designed and maintained to 1 enable nuclear plant directors to concentrate their efforts on operating and managing the plants safely with administrathe and

! technical support provided by functional divisions. Several significant advantages result from the GPU Nuclear project concept:  :

1) It provides clear lines of authority and responsibility while ensuring that essential corporate support functions which are .

dedicated to the project report to a single responsible  !

executive. i 1

2) The effectiveness of project quality assurance is enhanced by  :

integration with other aspects of project management under the  !

direction of a single executive.

. 3) The project structure provides the project executive the flexibility necessary for managing his resources to achieve optimal results.

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4) The project structure provides GPU Nuclear management tne advantage of working with proven methods and procedures with which it is thoroughly familiar.
5) The effectiveness of a dedicated corporate project support Organization is enhanced by identification with and sharing of common goals and objectives.
6) GPU Nuclear's functional divisions provide not only expertise but also important checks and balances which enhance safe operations.

Therefore, by making GPU Nuclear a directly responsible licensee rather that a mere contractor, the requested transfer will strengthen .

the overall management organization for Saxton and increase and co.1centrate the technical resources for that facility.

F. Firancial Considerations Upon approval of the requested transfer, SNEC will have the same financial responsibility for, and the same sources of funds to-support, the Saxton facility as under the present license. SNEC will  ;

4 continue in its commitment to provide all funds necessary to ensure i Saxton's safe management and support, and to maintain Saxton in a safe condition in conformance with NRC regulations. All costs incurred or accrued for construction, maintenance, repair, i decontamination, diamantlement and decommissioning of Saxton will remain liabilities of SNEC when incurred or accrued. Thus, the source of funds for managing Saxton will remain unchanged.

GPU Nuclear will act solely as a service company, authorized to

manage the Saxton facility as an agent of the owner, and will have no ownership interest in Saxton. GPU Nuclear will manage Saxton in accordance with the Saxton facility license and shall have exclusive responsibility for making safety decisions. While GPU Nuclear's budgetary authority will be limited by SNEC's retention of control over ultimate spending limits, this retained authority will not in any way encumber GPU Nuclear's ability to make safety decisions or to prevent hazardous conditions, and thus will have no impact on the safe management of Saxton.

Further, this proposed transfer and license amendment does not warrant a full financial qualifications review under 10 CFR 5 50.33(f). This is because all costs associated with management of Saxton will continue to be borne by SNEC, the owner and present ,

licensee, after GPU Nuclear has assumed responsibility for managing the facility.. Upon the transfer, therefore, the same financial qualifications will exist as under the present license.

G. Decoumissioning Fundino NRC regulations require information showing " reasonable assurance .

. . that funds will be available to decommission the facility." 10 CFR i 50.33(k). The proposed transfer will leave the status quo as to decommissionin) funds unchanged. After the requested transfer, SiEC will continue to own the facility and thus will remain responsible for assuring the availability of decommissioning funds in accordance with the Decommissioning Financial Assurance Certification 4

Report and funding plan for the GPU System's facilities which was submitted to the NRC on July 26, 1990.

H. Antitrust Information Under 10 CFR 5 50.80, an applicant for a license transfer is required to provide such information as would be required by 5 50.33a to conduct an antitrust review, but only "if the license to be issued is a class 103 license," 10 CFR 5 50.80(b). The Saxton facility license was issued under Section 104(b) of the Atomic Energy Act, 42 U.S.C. I 2134(b). It was not issued as a class 103 license. See e.g. Amendment No. 8, License No. DPR-4, par. 2B(1) (Aug. 15, 1972).

Therefore, it ir not necessary to submit any antitrust-related information in order to transfer management-related responsibilities under the Saxton facility license to GPU Nuclear.

Further, the requested license t-ansfer will not impact the existing ownership of the Saxton facility (by SNEC). And because that facility never operated commercially and is no longer generating power, the proposed transfer can have no impact on any commercial activity that may be related to nuclear plant ownership or control.

The transfer will result in no significant changes to the competitive position of GPU Nuclear, will have no significance to any activity that may give rise to antitrust concern, and will not create a situation inconsistent with the antitrust laws such as to warrant an antitrust review.

I. Statement of the Purpose of the License Transfer and the Nature of the Transaction Making the Transfer Necessar_y or Desirable The purpose of the proposed transfer is to allow Saxton, like the other nuclear facilities within the GPU System, to take direct '

advantage of the wealth of nuclear experience represented by GPU Nuclear's managerial and technical staffs. In making GPU Nuclear a directly responsible licensee rather than a contractor, the proposed change will strengthen the overall management and control of the maintenance, decontamination, dismantlement and decommissioning of the deactivated Saxton facility.

Authorizing GPU Nuclear to assume all management-related responsibilities under the Saxton license will permit GPU Nuclear to deal with Saxton in a manner consistent with that for its other nuclear plants. The benefits of utilizing the multi-facility, single-focused GPU Nuclear organization as the licensed manager of Saxton include the following:

1) Employment of executive personnel devoted exclusively to management of nuclear matters. Such single-purpose management facilitates the pursuit of excellence in nuclear affairs.
2) Use of consolidated nuclear management expertise and experience to enhance both public safety and economical management of the Saxton project. GPU Nuclear personnel can focus greater expertise on any area on short notice and exhibit increased proficiency under crisis conditions due to the use of pre-existing working relationships. As a result of the consolidation of off-site support organizations, there is more 5

effective, prompt and consistent communication of information such as " lessons learned."

3) Ability to provide a consistent vision for the philosophy of managing multiple nuclear units, allowing development of an effective approach to the pursuit of excellence in all aspects of nuclear facility management.

In summary, the transfer to GPU Nuclear of management-related responsibilities will confer direct authority under the Saxton

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license upon management personnel who are specialized in nuclear matters, and ensure an environment in which the employees are highly motivated toward good performance. These qualities will have a direct and positive impact on the activities remaining to be i accomplished leading to the decommissioning of the Saxton facility.

The result facilitated by the requested. transfer is thus consistent ,

with the views and perspective of the NRC, which have called for strong and focused management of nuclear plants.

J. Restricted Data ,

This Transfer Application does not contain any Restricted Data or other defense information, and it is not expected that any such information will become involved. However, GPU Nuclear agrees that  ;

it will appropriately safeguard such information if it does become

. involved so as not to endanger the defense and security of the United States of America. Specifically, GPU Nuclear agrees that it will not permit any individual to have access to Restricted Data except under the conditions set forth at 10 CFR 5 50.37.

II. OTHER INFORMATION RELATED TO THE TRANSFER A. Organizational Structure and Management for GPU Nuclear's Saxton Activities The GPU Nuclear organization for Saxton is as shown in the chart accompanying the proposed license mark-up at Attachment F hereto.

The President of GPU Nuclear will be responsible for, and provide full-time dedicated staff management of Saxton for the purpose of i maintaining the facility and performing activities in support of f decontamination and decommissioning safely and effectively.

Reporting directly to the President are GPU Nuclear's Nuclear L Services and Technical Functions Divisions, which have the main responsibility for providing support for the maintenance, characterization, decontamination, dismantlement and decommissioning -

of Saxton.

The Nuclear Services Division (NSD) will, among other activities, plan and direct the Saxton decontamination, dismantlement and decmmissioning; ensure the regulatory adequacy of all aspects of nuclear activities; prepare or review, and approve, all licensing procedures and licensing document correspondence; implement the plant radiation and environmental protection programs and other  :

occupational safety programs; and develop and coordinate strategic planning. The departments of this division which will provide services in support of Saxton include: Radiological Health and 6 L

_.-____-__-________-___-_-_-_-_._-__-___-__-_._l

Safety, Planning and Regulatory Affairs, Environmental Affairs,

. Medical, Training and Education, and Human Resources.2 The NSD's Vice-President will assure that all division and corporate activities regarding.Saxton are performed in accordance with corporate policies and applicable' laws, regulations, licenses and

. Technical Specifications. , Personnel working on-site at Saxton who will report to the Vice President NSD will include the Program Director SNEC Facility, to whom will be transferred the current responsibilities of the SNEC Vice President and General Manager. The Program Director SNEC Facility will be responsible for administration of all Saxton functions, direction of all decontamination, characterization, dismantlement, and decommissioning activities; and assuring that the requirements of the facility license and Technical Specifications are implemented. Reporting to the Program Director SNEC Facility will be the SNEC Facility Site _ Supervisor, who will provide on-site management and continuing oversight of production activities. The current responsibilities of the SNEC Site Superintendent will be transferred to this individual.

GPU Nuclear's Technical Functions Division (TFD) will provide engineering support to the Saxton on-site organization, assuring technical excellence 'in all aspects of nuclear activities in order to achieve safe, reliable and efficient accomplishment of such activities. TFD includes Departments of Engineering and Design, Chemistry and Materials, Nuclear Analysis and Fuel, and Projects.

Support will also be provided on an as-needed basis by GPU Nuclear's Administration & Finance Division, Corporate Counsel and Secretary (which includes the Legal Staff), and Communications Division.

Additionally, GPU Nuclear's Director of Nuclear Safety Assessment will monitor, review and audit activities at the Saxton facility to promote effective safety and quality assurance programs, to identify any trends or problems with a potential for compromising nuclear

. safety, and to ensure compliance with all applicable laws, i regulations, licenses, corporate polices, and other requirements.

, Personnel from all the foregoing GPU Nuclear divisions will be assigned and work together to provide technical support and project

- management capabilities to the Saxton facility. The current

responsibilities of the SNEC Technical Support Project Team under the facility license will be transferred to these GPU Nuclear personnel.

The Radiation Safety Committee is to provide independent overview and

assessment of all matters with radiological safety implications relative to activities at the Saxton facility. The Committee is to i be concerned with activities protecting the public, environment, workers and all aspects of work leading to final dismantling and
disposition of Saxton.

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! .' Departments within divisions are not specifically identified on the chart t

at Attachment G, in order to preclude the need for additional Technical Specification changes. based on a position name change or reporting change within j a particular division.

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The Committee is to conduct independent technical review of License and Technical Specification changes, characterization, maintenance and decommissioning actions, special nuclear and radioactive material activities, facility changes, planning for removal of the containment vessel, quarterly inspection results, audit and NRC Inspection Reports and corrective actions for deficiencies identified.

The Committee or any individual member thereof may at any time make oral or written comments to the Program Director SNEC Facility concerning matters considered to be within the Committee's area of responsibility., However, the Committee will report to and take general direction from the Vice President NSD.

The Radiation Safety Officer (RS0) will report to the Vice President NSD and will be tied via an indirect reporting relationship to both the President of GPU Nuclear and the Program Director SNEC Facility in order to encourage communication among these positions. The RSO will continue, as under the current license, to be responsible for the conduct and oversight of all radiation safety activities through implementation of a Radiation Protection Plan. All radiological controls personnel shall continue to have stop work authority in matters relating to or impacting radiation safety. The Group Radiological Controls Supervisor (GRCS) will continue, as under the current icense, to report to the RSO and directly supervise radiation safety activities. The GRCS also will consult with the SNEC Facility Site Supervisor for production activity direction.

In sum, all of the existing functions of the currently licensed SNEC organization are included in the proposed GPU Nuclear organization for Saxton.

B. Emergency Planning In 1982, Mr. R. Van Neil of the NRC Staff informed GPU Nuclear that because of the removal of the nuclear fuel and primary coolant from the Saxton site, the Facility was not required to comply with the emergency planning regulations set forth at 10 CFR 5 50.47(b) and Part 50, Appendix E. Nevertheless, the potential for fire, flood or intrusion at the Saxton facility has resulted in the development of an Emergency Plan with procedures directing the response to these events. A Radiological and Environmental Monitoring Program is also in effect at Saxton.

Upon the assumption of management-related functions, GPU Nuclear will become responsible for carrying out the provisions of the Emergency Plan, and the Radiological and Environmental Monitoring Program. The transfer of emergency planning responsibilities to GPU Nuclear will be accomplished without decreasing the effectiveness of the l aforementioned plan and program.

C. General Desian Criterion 17  :

The requirement in General Design Criterion 17 to provide an assured J source of off-site power is not relevant to the transfer to GPU Nuclear of management-related responsibilities for Saxton. The Saxton facility has been shut down and defueled for over two decades, .

and no longer has any need for an assured source of off-site power to l safely shut down the reactor and maintain it in that condition. j l

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D. Exclusion Area SNEC owns the entire plant Exclusion Area in fee simple, including mineral rights. Upon approval of the transfer to GPU Nuclear of management-related responsibilities for Saxton, GPU Nuclear will have the authority to exercise complete control over the activities within the Exclusion Area, as defined in the Technical Specifications, to the extent required by 10 CFR Part 100. GPU Nuclear will control ingress and egress and order evacuation of the Exclusion Area if necessary. GPU Nuclear will have unrestricted access to the real property adjacent to the Saxton facility, including the facilities, equipment and switchyard owned by Pennsylvania Electric Co. and located thereon.

E. Security The requested license transfer will not impact compliance with the physical security requirements set forth in the Saxton Technical Specifications. Upon the assumption of management responsibilities, GPU Nuclear will be responsible for ensuring, pursuant to the Technical Specifications, that:

1) access points to the Exclusion Area such as gates and doors remain locked except for authorized entry;
2) the Containment Vessel is equipped with an operable intrusion alarm to supplement the multiple physical barriers to intrusion; and
3) employees located on the Penelec property near the Saxton facility will report to the Program Director SNEC Facility any observation of attempted break-in and take immediate authorized actions.

F. Quality Assurance The proposed transfer of authority will not reduce the Saxton facility's commitment to quality assurance. In accordance with the existing Technical Specifications for Saxton, GPU Nuclear is already responsible for the performance of audits of those activities designated as within the scope of the facility's Quality Assurance program. GPU Nuclear will become responsible for all quality assurance functions upon its assumption of management responsibilities.

G. Price-Anderson Agreements After the transfer to GPU Nuclear of SNEC's management-related responsibilities for the Saxton facility, SNEC will remain responsible for providing financial protection under the Price-Anderson Act for its current ownership interest in the facility.

Nevertheless, SNEC and GPU Nuclear plan to amend the Price-Anderson primary level financial protection agreement for Saxton in order to add GPU Nuclear as a named insured. Additionally, SNEC hereby requests the NRC to make the same amendment to the Saxton indemnification agreement as of the transfer's effective date.

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III. APPLICATION FOR LICENSE AMENDMENT Pursuant to 10 CFR 5 50.90, and with the concurrence of GPU Nuclear, provided in Attachment B, SNEC requests the NRC to amend the Saxton facility license upon the transfer's becoming effective. The requested amendment would substitute GPU Nuclear for SNEC wherever maintenance, characterization, decontamination, dismantlement, decommissioning or other management-related responsibilities are described in the license and-Appendix A thereto (Technical Specifications).

A. Form of the Amendment The requested amendment is merely an administrative change to the Saxton facility license. It reflects the transfer to GPU Nuclear of SNEC's. management-related responsibilities for the Saxton facility.

In Lona Island Liahtina Co. (Shoreham Nuclear Power Station, Unit 1),

CLI-92-4, 35 NRC.69, 77 (1992), the Commission noted that after a license transfer is finalized, there remains a need for administrative purposes to have the license changed to reflect the name of the new licensee. Here, an amendment is necessary to substitute GPU Nuclear for SNEC wherever maintenance, characterization, decontamination, dismantlement, decommissioning or other management-related responsibilities are described in the facility license and its appendix. Attachment F to this application is a mark-up of the current facility license and appendix for Saxton, showing the specific language changes that will be necessitated by the requested transfer. Additionally, Attachment G sets forth a point-by-point explanation of those changes to Appendix A.

In particular, SNEC requests that the NRC amend Facility License No.

DPR-4 to read so that:

1) GPU Nuclear Corporation, pursuant to Section 104b of the Act and '

10 CFR Part 50, " Licensing of Production and Utilization

' Facilities", is licensed to possess, manage, use and maintain, but not to operate, the Saxton facility at the designated
location in Liberty Township, Bedford County, Pennsylvania, in l accordance with the procedures and limitations set forth in the 1 l

, facility license;

! 2) Saxton Nuclear Experimental Corporation, pursuant to the Act and

! 10 CFR Part 50, is licensed to possess, but not to manage, use, '

maintain or operate, the Saxton facility at the designated

location in Liberty Township, Bedford County, Pennsylvania, in L accordance with the procedures and limitations set forth in the i

facility license; and 3)- :GPU Nuclear, pursuant to the Act and 10 CFR Part 30, " Rules of General Applicability to Licensing of Byproduct Material", is l licensed to possess, but not to separate, such byproduct i

material.as may have been produced by operation of the Saxton facility.

2 B. Analysis of- No Sianificant Hazards Consideration j

The proposed amendment substituting GPU Nuclear for SNEC wherever 1

. management-related responsibilities are described in the Saxton license-involves no significant hazards consideration. The Commission noted in Long Island Lightina Co. that a license amendment l ,

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4 reflecting an effective license transfer " presents no safety  ;

questions and clearly involves no significant-hazards  !

! ~ considerations." 35 NRC at.77 n.6.  ;

i Under the terms of the proposed amendment, the facility license will I

designate GPU Nuclear as the'1egal entity which will provide the-  ;

I technical and managerial resources for the continued safe management and support of the Saxton facility, and as the entity with exclusive

responsibility and control over the facility's maintenance,
characterization, decontamination, dismantlement and future j decommissioning. The proposed license amendment involves no change e .in ownership and no physical change to the Saxton facility. Aside from organizational changes already described, all of the existing j technical specifications will remain in effect. While applicable -

facility plans and procedures will require some administrative changes to reflect GPU Nuclear's assumption of responsibilities, no  ;

changes will be made that decrease the effectiveness of those plans ,

and procedures. ,

l.

] The. technical qualifications of GPU Nuclear to carry out its .

responsibilities under the facility license, as amended, will be  ;

i equivalent or superior to the technical qualifications of SNEC. j i Although SNEC is the current licensee, it is already utilizing the 2

services of GPU Nuclear in accordance with an Agreement executed  !

between those parties on March 4, 1985 (Attachment E).

l1 i The NRC Staff has been aware of GPU Nuclear's management role at the '

Saxton facility to this point, and indeed has on several occasions l interacted directly with GPU Nuclear personnel regarding Saxton matters. When the requested amendment becomes effective, the GPU l Nuclear employees now assigned to work on Saxton (on-site and off-site) will perform the same duties as before, but simply will assume the formal status of licensee personnel. Moreover, the NRC has already found GPU Nuclear technically qualified to manage i

operational and decommissioning activities at Oyster Creek and TMI Units 1 and 2, the other nuclear facilities in the GPU System.

Making GPU Nuclear the licensed manager of Saxton facility will be
consistent with GPU Nuclear's express purpose of functioning as an

! integrated nuclear service company with. responsibility for multiple nuclear energy plants, and will help ensure the success of the j remaining characterization and the decommissioning efforts at Saxton by permitting direct and effective utilization of the GPU Nuclear organizational structure.

Under the-tests set forth in 10 CFR I 50.92(c), the proposed

- amendment involves no significant hazards consideration.
Implementation of the proposed amendment would not increase either the probability or the consequences of an accident previously evaluated. A Safety Evaluation in 1972 identified fire, flood and L radiological hazard as the potential accidents applicable to the Saxton site. Implementation of the proposed organizational changes t 'would have no effect on the likelihood or impact of these events.

Nor would such implementation create the possibility of a new or

, different kind of accident from any accident previously evaluated,. or I involve any reduction in a margin of safety. As explained above, the i L proposed changes in the organization and position titles for j

1 11 )

4

individuals performing and managing the' activities at Saxton are administrative in nature. As such, these changes will not affect the health or safety of the public. .

IV. EFFECTIVE DATE-

, The transfer-of management responsibility from SNEC to GPU Nuclear-requires the approval of no regulatory authorities other than the NRC. I

Therefore, SNEC requests that the NRC issue the proposed license amendment i

, immediately upon approving the requested transfer of management l responsibility.

I V. CORRESPONDENCE AND NOTICES l As of the effective date of _ the requested transfer, all NRC correspondence

! related to Docket No. 50-146 should be directed to GPU Nuclear, which also '

will transmit all licensee correspondence relating to the Saxton Facility.

GPU Nuclear will notify the NRC in writing of any exceptions to this i policy.  !

i Any notices, questions o'r correspondence in connection with this filing  ;

j. should be directed to: ,

Dr. Robert Long '

Vice President, Nuclear Services Division

! GPU Nuclear Corporation i c/o Regulatory Affairs Department, TMI l P.O. Box 480, i Route 441 South Middletown, Pennsylvania 17057 i

i VI. CONCl.USION ,

For the foregoing reasons, SNEC requests the NRC to:

y ,

I A. Approve the transfer to GPU Nuclear of all maintenance,

characterization, decontamination, decommissioning, and other i management-related responsibilities under the license for the Saxton ,

facility. ,

.B. Amend the Saxton facility license to substitute GPU Nuclear for SNEC I

wherever maintenance, characterization, decontamination, dismantlement, decommissioning, or other management-related
responsibilities are described in the license and Appendix A thereto i i (titled Technical Specifications).

C. Amend the Indemnification Agreement for the Saxton facility to add GPU Nuclear as a party to that agreement.

1 D. Issue an_ updated and consolidated version of the license and Appendix A thereto, which sets forth all currently applicable provisions and amendments, as reflected in the revised pages at Attachment G.  ;

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ATTACHMENT D LISTING OF COMPANY DIRECTORS AND OFFICERS GPU NUCLEAR CORPORATION 2 PAGES 4

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F

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GPU NUCLEAR CORPORATION DIRECTORS Name Address J. R. Leva GPU Nuclear Corporation ,

Chairman of the Board 1 Upper Pond Rd., Parsippany, NJ 07054 i D. Baldassari T. G. Broughton .

P. R. Clark F. D. Hafer J. D. Townsend OUTSIDE DIRECTOR C. A. H.'Trost OUTSIDE DIRECTOR W. A. Wilson OUTSIDE DIRECTOR R. L. Wise I

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l GPU NUCLEAR CORPORATION PRINCIPAL 0FFICERS i Name Address l P. R. C1 ark oo se ar,ucco av 1. . amre ifif .> GPU Nuclear Corporation l President & Chief Executive Officer 1 Upper Pond Rd., Parsippany, NJ 07054 )

T. G. Broughton cateuces cuac ifife.)

Executive Vice President 4

J. J. Barton tro ac ac ucro er m. . nocwe ifif .>

Vice President  ;

i P. R. Chatman Assistant Comptroller i C. Clawson ,

Vice President i

J. G. Graham Vice President &' Chief Financial Officer T. Howson -

Vice President & Treasurer R. W. Keaten  ;

Vice President .

J. Knubel Vice President R. L. Long

. Vice President i

! P. E. Maricondo

, Vice President & Comptroller l M. A. Nalewako Assistant Corporate Secretary R. S. Renzi Assistant Corporate Secretary ,

M. B. Roche <ncetaccs .4 aron ifif .> ,

Vice President l S. H. Somich Assistant Treasurer  !

J. F. Wilson " "

Corporate Secretary

2

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4 4r a .2 & ,_-4L,66 & J M+4-_ , uM A d e As- a i, men ,4-G--ML w- E.-dr-a-i-m 4 4 4

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4 ATTACHMENT E  !

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! - SAXTON NUCLEAR EXPERIMENTAL CORPORATION (SNEC)/

GPU NUCLEAR CORPORATION'(GPUN) AGREEMENT j PAGES 1 TO 8- ,

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i Gi-26-1995 11:31 FROM TO 912026638007 P.02 i

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l a v THIS AGREEMElrf, unde and entered into this 4th day of __ March 1985, f'

between SAITON NUCLEAR EZFERIMENTAL CotPORATION ("SNEC")

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aad 1

' CPU NUCLEAR CORPORATION ("GPUNC") .

I l E 1I!!! S 113:

MEEAS SNEC, a non profit corporation (the capital stock of which is owned '

by Jersey Cantest Power & Light Company, Metropolitas Edison Company and .

l Pennsylvania Electric Company in the following percentages: forty-four (44) j percent, thirty-two (31) percent and twenty-four (24) percoat, respectively), is i

the owner of a 5,000 kilowatt (electrical) water-type nuclear reactor (" station")

i located on the Raystova Bransk of the Juniata River near Santon, Pennsylvania, constructed and operated for experimental and research purposes; and i

WEEREAS, the expedesacal and research activities of SMEC having terminated i

and its reestor facility decommissioned SNEC, pursuant to Amendesnt No. 9 to l

Facility Operating License No. DF1-4 issued by the Atomic Energy Commission (now v the Nucteer Regulatory Commission ("NBC"), is authorised to possess, but not to operate, its properties until February 11, 2000; and MERAS, because of the esistence of certain radioactive natorial at the l

Station, under the terms of the aforesaid Amendment No. 9 and the current

regulations of the MC, continued maintenance and surveillance of the Station and various activities leading towards the dismantling thereof is required; and i

m REAS, GPUNC, as affiliated company, has been organised and established within the GPU System to assume responsibility, on behalf of the owners of nucisar facilities, and by contract with them for the performance of the various activities .

l rguired of the owner of a euclear facility; and 3

MREA8, all of the resources of the CPU Companies re$ating to suelear matters l

having been consolidated in GPUNC, it is desirable and to the the adysacage of i

SNEC, that CPUNC be essaged under the terms and conditions hereinafter set forth, to asistain and dissaatte the facility and aske any ascessary repairs, j modifications and additions thereto and retirements therefrom on behalf of SNEC;  ;

NOW, THREFORE, in consideration of these presises, the parties hereto do hereby agree as follows:

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JUN-26-1995 11:02 FR0f1 TO 91292663E1007 P.03

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, ARTIC2 1 Services to be provided i

I l 1.1 GpVNC, consistent with such written guidelines as may be jointly developed j with SEC, shall provide and be responsible for the maintenance of the Station

' and make repairs and modifications as necessary in a safe and reliable manner j in accordance with all appilcabi' s, lawful licenses and permits and requirements of state and federal regulatory agencies and shall dismantle the Station. "Statica", as used in this Agressent, is defined as any and all

] real, personal and sized property located os or forming a part of the property

comonly known as Santon Wuclear p.xperimental Corporation located in Liberty l

Township, Bedford County, Pennsylvania, escluding only those facilities which  ;

comprise pennsylvania Electric Ceapany's Saxton Line Office and switchyard. ,

j GPUNC also shall aske such further modifications of and additions to and i retirements from the Station as shall be saastetest with such asiatenance and i disematting. Sash services and construction any be provided by GyVNC through i its own personnel or in part by others under sontractual or other ,

! arrangements. la furtherance of the foregoing, GPUNC shall, on behalf of l $NEC, among other things:

j a. Select, hire, sentrol and discharge personnel, who will be employees j solely of CpVNC, and select and retain the services of contractors and coesultants. All systems employees and contractors working at the station l will ashere to the policies, plane, procedures, and mesuals of CpVNC.

Arrange for the purchase on behalf of SEC of repair, modification, b.

malatenaces and dismaatiing materials and dismantling services and supplies.
c. Determine and stipulate inventory levels of material and equipment for the l

Station.

, d. Keep $RC laformed is a reasonable manner concerning Station repair, modification, asiatenance, additions, retirements and dismantling j setivities.

j e. Prepare, or arrange for the preparation of, in accordance with normal and custenary procedures, annual budgets and forecasts for the Station's i repair, modification, maintenance and disanatting costs, capitat

expenditures and retirements to be submitted to SEC for approval. Such approval shall be required bafore action may be taken thereunder, provided that work required to prevent hasardous conditiona may be undertaken prior t to such approval with prompt notification thereof given to $M C. Such budgets and forecasts shall be revised from ties to tins to reflect material changes La circumstances.
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JU1-26-1995 11:03 FF111 TO 91202t%33007 P.04

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l f. Perfom any services and take sny action on behalf of SNEC where ,

appropriate, related to the repair, modification, asiatenance, renewals, i l replacessoas, additions, dissantling and retirements pertaining to the l

5tation as may be necessary or appropriate to comply with the provisions ]

of the Atomic Energy Ace or any other applicable statute, rules, j j

regulations, guidelines or similar criteria, as amended or as they may be i amanded, and any provisions or conditions of licenses, permits or similar

! authorisations granted or that may be granted La connection with Station i and as such permits, licenses or other authorizations any hereafter be j amended. {

l 3 Provide communications to, and receive communications from, the Nuclear l Regulatory Coenission and/or any successor governmental agency, as well as ,

4 any o't her governmental agency having jurisdiction with respect to any )

aspect of the Station's maintenenee, repair, modification and dissantling ,

i and, in such capacities, represent (or engage othera to represent) SNEC. j 4

h. . Perfors, or, if deemed desirable by GPUNC, contract on behalf of $5C with l others (Laciuding agencies of Government or their contractors) for repair, j modification, malatenesse, renewals, replacements and dismantleasats
required to place sad /or keep the Station is a safe condition to protect l

the property and disburse or receive funds in connection therewith. Such l

work shall be subject. to normal and customary GPUNC review and approval i procedures.

s._.

L. Perform any additional services pertaining to the Station to which SNIC l l and GPUNC shall have mutually agreed. i l

(  ;

4 j. Arrange for'the asiatensace, in accordance with normal and customary  !

procedures, of sush necessary books of record, books of accesas and memoranda of tranaaetiona and for the provision of such reports with l l l respect thereto to 555C as SMC shall desire to meet its accounting and I

! statistical requirements and to conform to the applicable lawful rules,

regulations and requirements of all regulatory bodies having jurisdiction i

over $1EC. The costs for the Station shall be accumulated in a separate aet of accounts.

l -

l k. Provide, or strange for the provisior of, such other data or information .

j with respost to the Station as may be reasonably requested by SNEC from j ties to time.

1,2 Matters and questiosa arising in connection with the repair, modification, j

' saintensoce and dismantling of the Station which are not within the scope of the authority delegated to CPUNC under this Agreement and are not specifically provided for in this Agressent shall be jointly detessined from time to time by SIEC and GPUNC.

1.3 The costs for services provided by GPUNC pursuant to the torna, conditions and i

provisions of this Agreement shall be paid to CPUNC in Article 3. ,

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JUN-26-1995 1D 03 FROM TO 312026638007 P.05 a

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AltTICII 2

,,, Workina Fund ,

2.1 SNEC shall establish and esistain a fund from which GPUNC shall aske payments l for all costs pursuant to its services and responsibilities hereunder. 5NEC, l

in consultation with GPUNC, shall determine, initially and from time to cine,

during the ters of this Agreensos, the amount or enounts required to maintain i a satisfactory balance in the fund, and shall be liable for may such
  • i additional enounts required to maintain the agreed-upon balance. $NEC shall j reimburse the fund promptly on receipt of notice from GPUNC of its obligations

! for reimbursement.

t 2.2 On termination of this Agreement, as hereinafter provided, any residual i unaspended balanse la the working fund shall be credited to SIEC. '

j .

t ARTIC12 3

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j %ernes. Financisi Statements. and Billiams l

l 3.1 GpUNC shall arrange for reporting to SNEC for each month, promptly following the end of such month, by writa,en statements for fo11 ewing:

l

! " a. The costs of repair, modification, maintenance and dissantling, the cost i

ed any pleet additions and retirements, including applicable costs of a

removal and salvage, on an accrust basis, classified as required to meet l

its obligations under Section 1.1 (j) above. *

b. A summary statenest of the activities during that month of the Working Fund, showing beginning balance, receipts, disbursensats and closing l balance.

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3.2 The costs incurred or accrued free all sources during each calendar month in 4

repairing, modifying, asistaining, disaastling and asking additions to and'

! retirements from the station shall become liabilities of stEC when incurred or i

accrued sad shall be borne by susC. All such costs shall be decorained in accordamse with sound accounting practices, and shall include reasonable and j appropriate indirect costs including overheads. In particular, all of the j services readered hereunder by GPUNC will be at actual costs thereof. Direct

charges will be mode for services where a direct ailocation of costs is possible. The eschods of determining such costs and the allocation thereof j are set forth La Appendia A hereto. These motheda shall be reviewed annually

' and more frequently, if appropriate. Such methods may be modified or changed by GPURC, with the approvst of SNEC without the necessity of an amendment of j this Agreement, provided that in each instance, all services readered 2

hereunder will be at actual costs thereof, fairly and equitably allocated, and all is accordamse with the requirements of the Public Utility Holding Company

' Act of 1935 and the rules sad regulations and orders thereundar.

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0148U l oo11s 4

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JUN-26-1995 11:0 8 FPCM TO 91202663800' P.06 l ' l j +

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3.3 SNEC shali report, file returas with respect to, be responsible for and pay J

]

all real property, franchise, business or other cames, except payroll and I j sales or use' tases, arising out of its ownership of the station.

a

3.6 sNEC shall have the right, during the tem of this Agreement and thereaf ter as long as the books, records and assoranda referred to in Section 1.1 shall be I preserved, to inspect all such itses and to make reasonable audits thereof at '

l i their own costs as they may deem necessary to protect their interests.

l 3.5 In the event SEC shall question any statemene rendered according to the  ;

i provisions of Section 3.1 hereof, it shall nevertheless promptly pay the

! amount indicated in auch statemaet, but such payment, shall not be deemed to

! prevent SMEC from claiming an adjustment of any statement readered. ,

i 3.6 If it shall be determined that SNEC has paid more or less than as appropriate

' amount for any of the costs associated with the Station for the month covered j by such statement, an appropriate correction shall be ande by GPUNC by proper j eredit or charge, as the case may be.

- ARTICLEA i

Consliance with Provisions of Fermits l and Retu:.rements of Governmental Aaeacies i s l

SNEC and GPUNC shall cooperate la taking whatever action may be necessary to comply with the terms and provisions of permits and licenses for the Station and with all l

j sylicable lawful requirements of any federsi or state agency or regulatory body having jurisdiction in the premises. It is also agreed that say filings made with the SC be reviewed by the SEC Manager, is addition to any other reviews and '

approvale by other appropriate SIEC and GPUNC personnel, prior to subsittal.

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l ARTICLE 5 l

D=- - to Perseas or Propertyt f Penalties; Fa-o l

I-5.1 Sines GPUNC is undertakias its responsibilities hersuader at cost and in order to assist SIEC in meeting its responsibilities with respect to the Station, l the fo11ovi'16 Provisions shall be applicable to deanse to the property of j

i either of the parties hereto (including Station property) or third parties, or injuries to or less of life by any person, instuding employees of the parties i

hereto, and to penalties or fines assessed with respect to the Station; i

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FROM TO 912026638027 P.07 Jt.N-2G-1995 11104 6

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a. SEC and GPUNC will procure and maintain such physical damage, public i

11abi11gy.a. yorkers' compensation and other insurance as it may does appropriate with respect to all losses, damages, liability and clains arising out of its ownership and provision of services hereunder and the premium costs thereof shall be Station costs under section 3.2, or in the l alternative, upon concurrence of the parties hereto, SNEC and opunc will l

' jointly procure and maintain such physical damage, public liability, workers' compensation and other insurance as they any does appropriata j

with respect to all losses, damages, liability and claims arising out of the ownership of the Scation and provisions of services hereunder All and the  ;

l premium costs thereof shall be Station costs under Section 3 2. '

j insursace shall coetain a waiver of subrogation clause assinat the other '

t

! party hereunder.

b. Claims cogalasbie under workers' compensation acts or temporary disability '

l' benefits laws or any other benefits under workars' compensation or analagous statutes and the expenses of defending or disposias of the same, attributable to the ownership of ' the Station, or the provision of services i

hereunder, which are act covered in full by insurance procured in l accordams's with the preceding paragraph shall (to tbs extent act covered j

t by such insurause) be treated as Station costs under Section 3.1.

i

c. All losses, damages, expenses, penalties, liabilities, finds and claims l

U (including those in respect of property damage and personal injury) asserted by third parties and the expenses of defending or disposing of

! che sees, attributable to the ownership of the Station and the provision i et services hereunder, which are not covered in full by insurance procured i

in accordance with the second preceding paragraph shall (to the extent not ~

l covered by suah insurance) be treated as Station costs under Section 3.2.

j

d. The parties bereto empressly waive any right they any have to recover fras i

the ether for any losses, damages, pensitiss, liabilities, fines, claims

' or expenses (including desage to property of the Station) for any cause. -

including the negligeese of the other, its employees and agents in l ' connection with the ownership of the Station and the provision of services l

here d .

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Miscellaneout

[l Nothing in this Agressent shall be deemed to creata or constitute a 6.1 partnership or joint venture between the parties hereto, the sole purpose of this Agressent being limited to provision for the orderly and officient 1

repair, andLficaties, asiatenance and dismantlement of the Station.

' 6.1 sur,C hereby designates its president as its Representative, who shall receive notices and communications from GpUWC under the provisions of this Agreement v

and who shall send to the designated Representative of GpDMC all notices and 4

coesualcations under the provisions of this Agreement.

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TO 912026638007 P.08 JtN-36-1995 11:05 FRCM i

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6.3 CPUNC hereby designates its President as its Representative, who shall receive notices and coanuaications from $NEC under the provisions of this Agreement

and who shal1~s'end to SWEC 411 notices and cousunications concerning the

,i provisions of this Agresesat.

f 6.4 SlfEC shall determine the basis and method it will use for purposes of

! depreciation and other matters where levestment in Station property is j

{

relevant. .

't i 6.5 In performing services under this Agreement on behalf of SWEC. GPUNC shall act l as an independent contractor responsible for the result to be attained,

consistest with such guidelinea as may be jointly developed with SNEC.  ;

1 i d.6 since susc may, from time to cine, provide goods and services to the station,

! CrumC shall pay for such goods and services at sest determined as herein provided, which payesses shall be treated as Station costs under Section 3.2 i

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! ARTICLE 7

! Effective Date and Termination *

%. 7.1 Subject to any applicable rules and regulations and associated approvals of ~

any regulatory authority, this Agreement shall become effective as of the date 1

first above written and shall reesta is full force and ef face unissa and until terminated. .

b

! 7.2 This Agreensat any be terminated, by $1lEC upon reasonable notice to.GPtlNC, ,

provided that adequate provision is made to protect the public health and l

safety.

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) ARTICLE 8 i

l . Successors and Assians I

This Agreement, and all of the terms and conditions hereof, shall be binding upon and enure to the benefit of the parties hereto and their respective successors and assigns.

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' ARTICLE 9 i Covernint Law This Agreement has been executed'and delivered in the State of New Jersey and is intended to be construed in accordance with, and to be governed by, the laws of that State.

a IN WITNESS WMEREOF, the parties heretis have caused these presents to be executed and delivered in Parsippany, New Jersey, as of the day and year first above written.

1 2

SAXTON NUCLEAR EXPERIMENTAL CORPORATION Attest:

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ny nn cd 1.L-tf E....t.r,

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J GPU NUCLEAR CotPORATION Attest:

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Rev. L

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ATTACHMENT F REVISED LICENSE, PAGES 1 AND 2 AND APPENDIX A, PAGES 1 TO 8 l

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t GPU NUCLEAR CORPORATION SAXTON NUCLEAR EXPERIMENTAL CORPORATION l DOCKET NO. 50-146 AMENDED FACILITY LICENSE

1. The Nuclear Regulatory Commission (the Commission) has found that:  ;

A. The application, as amended, complies with the requirements of the Atomic Energy Act of 1954, as amended (the Act), and the regulations of the Commission set forth in 10 CFR Chapter I:

8. There is reasonable assurance (i) that the activities authorized by this amended facility license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the regulations in 10 CFR Part 50

C. GPU Nuclear Corporation is technically qualified, and Saxton Nuclear Experimental Corporation is financially qualified, to engage in the activities authorized by the amended license in accordance with the rules and regulations of the Commission:

D. Saxton Nuclear Experimental Corporation has furnished proof of financial protection which satisfied the requirements of 10 CFR Part 140: and i E. The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public.

2. Operating License DPR-4, as amended, is hereby amended in its entirety to read:

A. This license applies to the pressurized water reactor (hereinafter referred to as the "Saxton facility") owned by Saxton Nuclear Experimental Corporation (hereinafter referred to as "SNEC"), located north of the Borough of Saxton in Liberty Township, Bedford County, Pennsylvania, and described in Amendment No. 5 dated April 19, 1961, and amendments thereto including the amendment dated April 14, 1972, to the Saxton facility's license application.

~

B. Subject to the conditions and requirements incorporated herein, the Nuclear Regulatory Commission hereby licenses GPU Nuclear Corporation (GPU Nuclear) and SNEC as follows:

1) GPU Nuclear, pursuant to Section 104b of the Act and 10 CFR Part 50,

" Licensing of Production and Utilization Facilities", is licensed to possess, manage, use and maintain, but not to operate, the Saxton facility at the designated location in Liberty Township, Bedford County, Pennsylvania, in accordance with the procedures and limitations set forth in the facility license; 1

.I 2) SNEC, pursuant. to the Act and 10 CFR Part 50, is licensed to

possess, but not to manage, use, maintain or operate, the Saxton
facility at the designated location in Liberty Township, Bedford County, Pennsylvania, in accordance with the procedures and 5

limitations set forth in the facility license; and e i

3) GPU Nuclear, pursuant to the Act and 10 CFR Part 30, " Rules of

, General Applicability to Licensing of Byproduct Material", is j licensed to possess, but not to separate, such byproduct material as may have been produced by operation of the Saxton facility, j C. This license shall be deemed to contain and be subject to the conditions specified.in Part 20, Section 30.34 of Part 30, and Section 50.54 of Part 50,10 CFR Chapter I, and to all applicable provisions of the Act and to the rules, regulations and orders of the Commission now l or hereafter in effect, and to the additional conditions specified

below
1) GPU Nuclear shall not reactivate the facility without prior approval  ;

of the Commission. j 1

4 2) GPU Nuclear shall not dismantle or dispose of the facility or the t property occupied by the facility without prior approval of the

Commission. jl i 3) The Technical . Specifications contained in Appendix A as revised through Acendment No. 13 are hereby incorporated in the license.

- SNEC and GPU Nuclear shall possess the facility in accordance with

the Technical Specifications.
3. This license is effective as of the date of issuance and shall expire at '

i- midnight on February 11, 2000, or upon expiration of the corporate charter of Saxton Nuclear Experimental Corporation, whichever occurs first.

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