ML20097E731
| ML20097E731 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 06/04/1992 |
| From: | Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| CLI-88-10, CLI-90-03, CLI-90-3, NYN-92074, NUDOCS 9206150005 | |
| Download: ML20097E731 (3) | |
Text
. _ _ - _ _ _ _.
Ted C. Feigenbaum President and Chief Execut;ve Officer NYN. 92074
- June 4,1992 United States. Nuclear Regulatory Commission Washington, D.C.
20555 Attention:
Document u,.itrol Desk
References:
(a)
Facility Operating License No. NPP-86; Docket No. 50-443 (b)
NHY Letter to NRC' dated October 20, 1988; E. A, Brown to Document-Control Desk (Response to CLl 88 07)
(c)
NHY Letter to NRC dated March 20,1989; E. A; Brown to Document Control Desk-(Decommissionirig Funding Assurance)
(d)
NRC Letter to NilY dated March 31, 1989; S. A. Varga to E.- A. Brown (Decommissioning Funding Assurance)
(e)
NHY Letter to NRC dated April 27l 1989; E._ A. Brown to Document Control Desk (Response to NRC Comments on Decommissioning Funding
- Assurance)
-(f)
Memoraudum for Commissioners dated-May 3,
1989 (Scabrook Decommissioning Funding and Readiness for Low Power License)
(g)
NHY Letter to NRC-dated: May~ 22, 1989;- E. A. Drown to Document Control Desk (Notification of Purchas_e of-- Securities Required by Seabrook Supplementary Pre-Operational Decommissioning Trust)
Subject:
. Pre-operational Decommissioning Trust-Fund Gentlemen:
(
In its decision CL1-88-10 (28NRC573), _ the Commission imposed certain funding -
requirements on the Licensees to ensure that. there would be l adequate resources to decommission Seabrook Station Unit 1 if a full power operating license.was ultimately denied after low power testing had been conducted.- CLI 8810 and the Staff evaluation (Ref. f) of the funding assurance plan established for this purpose required that the" term of the funds extend entil the earlier of a final non appealable decision to grant a license _to operate -
at full power or a final non-appealable decision _that such further decommissioning funding' is= no longer required. New Hampshire-Yankee (NHY), as agent for the Licensees,.hereby iniorms 'the Staff that because -the,- first of the above conditions has -' occurred, the preoperatienal -decommissioning _ trusts that were established have been terminated.
The v
backgr'ound= of _these ~ funding 're,quirements is-as follows:
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.PDR New Hampshire Yankee Division of Public Service Company of New Hampshire P.O. Box 300
- Seabrook, NH 03874
- Telephone (603) 474-9521
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United States Nuclear Regulatory Commission J une 4,=
1992 Attention:
Document Control Desk Page twu-In its decision CLi 88-07 (28NRC271), dated September 22, 1988, the Commission imposed a special pre-operational decommissioning funding requirement upon the Licensees because of the unique circumstances which affected Seabrook at that time. Construction :of the Unit had been completed and fuel _ loading authorization had-been issued in October, 1986. As litigation of aspects of the Seabrook emergency plans continued, the applicants sought authority to conduct low power testing. The proceedings were complicated by the bankruptcy of a major owner of the facility and attempts by.the intervenors to reopen the issue of financial qualifications in the context of low power testing. These circumstance;.
led the Commission to require that the Licensees provide assurance of adequate _ funds for decommissioning Seabrook Station Unit 1_in the event a full power operating license ~ ras denied.after low-power testing had been conducted, la response, NHY submitted a plan (Ref. b) that included a cost estimate of $21.1-million for decommissioning Seabrook in the event th_at low power testing occurred and a full-power license was not granted. The Commission reviewed this estimate and,-in-CLI-88-10,:
increased _i_t to $72.1 million to account for the potential costs of o_nsite long term spent-fuel-storage, and an increased contingency allowance. By letter dated March 20,- 1989 (Ref. c),
NHY provided the Commission with a copy of a Surety Bond in the amount of $72,1 million -
issued by The Aetna Casualty and--Surety Company _which unconditionally guarantees the payment of the pre operational _ decommissioning L costs, together with a.Seabrook Pre Operational Decommissioning Trust Agreement y.ursuant to which any such funds would be segregated for application only te such decommissioning.
By letter dated March 31,1989 (Ref. _d), based upon its reading of CL1-8810, the Staff requested NHY to address the need for additional funding beyond the $72.1 million to meet projected cost escalation during the-hypothetical 28 year decommissioning period as a prerequisite to issuance of the low power testing license. NHY responded with a-proposed supplemental-financing plan that resolved the Staff's: concerns (Ref, e).
The Staff then completed its evaluation of the ' decommissioning: funding assurance plans. and notified the Commission (Ref, f) that the applicant had met the Commission's - funding requirements.
On _ May 22, 1989, (Ref.. g),.NHY filed a copy o_f _ a Supplemental Pre Operational Decommissioning Trust Agreement that provided over $40 million in the additional guarantees needed to meet the Staff's requirement. - On May 26, 1989, the NRC issued the low-power testing license (NPF-67).
Issuance _of the full power license (Ref.-a) was authorized by the-Commission in its decision CLI-90-03 (31NRC219), a decision that was promptly appeal'ed by the inter _venors -
to the _ United States Court of Appeals for the District of Columbia Circuit. That appeal:was denied prompting a petition to the U.S Supreme Court for a fwrit of certiorari which was also denied. Commonwealth of Massachusetts v. Nuclear Reculatory Comnl ssion. 924 F.2d i
311 (D.C. Cir._1991), cert. denied (U.S. October 7,1991).
.s -
On April 3,1992, the Commissbn decided the final appeal of a Seabrook full power:
licensing issue in CLI-92-08 -(slip op.) when it affirmed the Licensing' Board's decision in L B P-91-24. No petition for review of CL192 08 has been filed within the 60 day time frame-al(owed by the Federal Rules of ' Appellate Procedure.
- - _ _ _ _ = _ _
4 4
Unit,cd States Nuclear Regulatory Commission Juic: 4, 1992:
Attention:
Document Control Desk Page three in view of said denial _of certiorari in hiassachusetts v. NRC, supra,f and expiration of the appeal period after the issuance of _ CLI 92 08, the termination conditions-of the pre-operational decommissioning funding requirements have now been met and those unique funding arrangements are no longer mandated-by CLI 8810 or CL190-03.
The Facility Operating License (Ref. a), issued in conformity with CL190-03, has been judicially upheld and no further appeal. therefrom is-availablei
'The -Seabrook. Pre-Operational Decommissioning Trust Agreement and Seabrook. Pre-Operational Supplementary JTrust Agreement have therefore been termina ed.
Seabrook will be governed, bereafter, _ by-the same decommissioning regulations as all o'her licensed facilities, if_ you have ' any questions on this - ciatter, please contact hit.
R. Jeb ' DeLoach, Executive Director of Engineering and Licensing, at-(603) 474 9521 extension 2846.
Very truly yours, dp O
Ted C, Feigenbaum TCF:J B H/act/ss j
cc:
h!r. Thomas T. Martin Regional Administrator
(
U.S.- Nuclear Regulatory Commission
-t Regis I 475 Allendale Road-King of Prussia, PA 19406
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k hir Gordon E. Edison, Sr. Project Id' nager j
Project Directorate 1-3 Division _of Reactor Projects
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' U.S. Nuclear Regulatory Commission Washington, DC' 20555
. htr. Noel Dudley NRC-Senior Resident Inspector i
P.O. Box 1149
'l Seabrook, NH 03874
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