ML20128M614
| ML20128M614 | |
| Person / Time | |
|---|---|
| Site: | Indian Point  |
| Issue date: | 01/19/1993 |
| From: | Kodak A YANKEE ENGINEERING & TESTING, INC. |
| To: | Selin I, The Chairman NRC COMMISSION (OCM) |
| Shared Package | |
| ML20128M584 | List: |
| References | |
| NUDOCS 9302220229 | |
| Download: ML20128M614 (7) | |
Text
Y.$"lf Telephone 1508) 77M7I t l_'
YANKEE ATOMIC ELECTRIC COMPANY 7&N 580 Main Street. Bolton, Massachusetts 017401398
. YANKEE./
~
ANDREW C. KADAK. Ph. O.
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MMEY U s UM Dr. Ivan Selin, Chairman U.S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Rockville, MD 20852
Dear Chairman Selin:
On September 28,
- 1992, Yankee Atomic Electric Company submitted to the NRC a request to amend the existing Indemnity Agreement for the Yankee Nuclear Power Station (Yankee).
This modification to the Indemnity Agreement is based solely on the fact that Yankee is no longer licensed to operate, cannot produce any electricity and has a Possession Only License. The modification we seek is to be free of the secondary protection liability insurance requirement for nuclear plants licensed to operate over 100,000 kw and generally to lower the amount of liability insurance protection to a level commensurate with our permanently defueled and shutdown condition.
I am writing to you because we are at an apparent impasse in resolving this matter on a timely basis.
Nuclear Regulatory Commission regulations concerning liability-insurance, Section 140.11 " Amounts of financial protection for certain reactors," repeated below, no longer applies to Yankee:
"(a) Each licensee is required to have and maintain financial protections (1)
In the amount of $1,000,000 for each nuclear reactor he is authorized to operate at a thermal power level not exceeding ten kilowatts [ emphasis added);
(2)
In the amount of $1,500,000 for each nuclear reactor he is authorized to operate at a thermal power level in excess of ten kilowatts but not in excess of one megawatt [ emphasis added);
(3)
In the amount of $2,500,000 for each nuclear reactor other than a testing reactor or a reactor licensed under section 104b of the Act which he is authorized to operate at a thermal power level exceeding one megawatt but not in excess of ten megawatts
[ emphasis added); and (4)
In an amount equal to the sum of S200,000,000 and the amount available as secondary financial protection (in the form of private liability insurance available under an industry retrospective rating plan providing for deferred premium charges equal to the pro rata share of the aggregate public liability claims and costs, excluding costs payment of which is not authorized by section 170o. (1) (D), in excess of that covered by primary financial protection) for each nuclear reactor which is licensed to operate 9302220229 930210 ADOCK0500g3 PDR P
Dr. Ivan Selin, Chairman January 19, 1993 Page 2 and which is designed for the production of electrical energy and has a rated capacity of 100,000 electrical kilowatts or more Provided, however, That under such a plan for deferred premium charges for each nuclear reactor which is licensed to operate, no more than $63,000,000 with respect to any nuclear incident (plus any surcharge assessed under subsecticn 170o.(1)(E) of the Act) and no more than $10,000,000 per incident within one calendar year shall be charged (emphasis added)."
Given that Yankee is permanently shut down, defueled and specifically prohibited from power operations by its Possession Only License, Section 140.12
" Amount of financial protection required for other reactors," repeated below, applies:
"(a)
Each licensee is required to have and maintain financial protection for each nuclear reactor for which the amount of financial protection is not determined in 4 140.1h in an amount determined pursuant to the formula and other provisions of this section: Providad, That in no event shall the amount of financial protection required for any nuclear reactor under this acetion be less than $4,500,000 or more than $74,000,000 (emphasis added)."
On this matter, the regulations are explicitly clear.
The basis of.this regulation is found in the Atomic Energy Act Sections 170 (a) and (b).
The Atomic Energy Act specifies that for plants over 100,000 kilowatts electric that the Commission require the maximum private liability insurance and, in addition, an amount of secondary financial protection which is not to exceed ~$63 million subject to inflation per event per licensee.
The Act also allows the Commission to establish a lesser amount of nrimary financial protection, taking into consideration factors such as type of licensed activity.
As can be plainly seen, the Atomic Energy Act and-the regulations are completely consistent on the factual matter regarding liability insurance requirements.
Since our September 28, 1992 submittal, Yankee has patiently waited for the Nuclear Regulatory Commission staff to address this issue by allowing us to recognize our changed circumstance regarding liability insurance requirements.
The regulations and Act are quite clear in stating that we do not need secondary insurance protection since we are no longer operating.
NRC recognized this fact when in 1989, NRC and Consolidated Edison finalized amendment number 23 to the indemnity agreement No.
B-19 for Indian Point.
The subject amendment recognized and affirmed the withdrawal of the permanently shut down Unit No. 1 from participation in.the secondary financial protection program.
A copy cf the amendment is attached.
Note that the amendment specifically states that:
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i
1 Dr. Ivan Selin, Chairman January.19, 1993 Page 3 H
... no participation in the secondary financial protection program shall be required with respect to a reactor which has been permanently shut down, and where the licensee's authority to operate.
1 the unit as a power reactor has been revoked by the commission."
i The Yankee plant also is permanently shut down.
Furthermore, the Possession Only License, issued on - August 5, 1992, specifically-prohibits power operations.
In recognition _of Yankee's status and the September 28, 1992 submittal, Yankee has' held numerous discussions with the Office of-the General Counsel and Nuclear Regulatory ' Commission staff.
However, it appears that we are at an impasse from the standpointi of resolving this matter.
I would be pleased if you would personally look into this issue and move it along to conclusion'.
At the present time, the Yankee Atomic Electric Company, its shareholders and consumers are potentially exposed to a-financial-liability which, according to NRC regulations, it'need not have.
In many circumstances the regulations are subject-to varying interpre t:ations.
In this case, the regulation as well as the law is quite clear in terms of what must be ' done.
The present regulations and law are not confusing.
The national policy implications of nuclear plants prematurely _
shutting down because of economic and regulatory-uncertainty-are not the issue when it comes to compliance with existing regulation.
Nor should individual licensees be subject to unnecessary delay in a matter of the application of existing regulations.
I would appreciate your prompt attention 'to 'this matter so that Yankee,-its consumers and shareholders do not bear an unjust burden due to' internal regulatory delays.
Sincerely yours, Wb ACK/kg
9 Dr. Ivan Selin, Chairman j
January 19,-1993-Page 4 c:
Commissioner Kenneth C. Rogers Commissioner James R. Curtiss Commissioner Forrest J. Remick Commissioner E. Gail de Planque Dr. Thomas E. Murley, Director - NRR James M. Taylor, Executive Director for Operations William C.
Parler, General Counsel Mort Fairtile, Senior Project Manager, NRR 4-
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UNITED STATES
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NUCLEAR REGULATORY COMMISSION j
W ASHINoTON. O. C. 20$$$ '
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Docket Nos.
50-3 l
50-247 50-286 Amendment to Indemnity Agreement No. B-19 Amencment No. 23 l
Effective July 1, 1989, Indemnity Agreement No. B-19, between Consolidated Edison Company of New York, Inc., and the Atomic Energy Commission, dated j
December 14, 1961, as amended, is hereby further amended as follows:
The amount "$16',000,000" is deleted wherever it appears and the amount "$200,000,000" is substituted therefor.
l The amount "$124,000,000"- is deleted wherever it appears and the amount "$155,000,000" is substituted therefor.
1 The amount "$36,000,000" is deleted wherever it appears and the amount "$45,000,000" is substituted therefor.
Paragraph 1, Article I is modified to read as follows:
)
1.
" Nuclear reactor," " byproduct material," " person," " source material,"
"special nuclear material," and " precautionary evacuation" shall have
]
the meanings given them in the Atomic Energy Act of 1954, as amended, j
and the regulations issued by the Commission.
j i
The definition of "public liability" in paragraph 7, Article I is deleted, and the following is substituted therefor:
"Public liability" means any legal liability arising out of or resulting from
)
nuclear incident or precautionary evacuation (including all reasonable a
additional costs incurred by a State,or a political subdivision of a State, in the course or responding to a nuclear incident or precautionary evacuation),
except (1) claims under State or Federal Workmen's Compensation Acts of employees of persons indemnified who are employed (a) at the location or, if-the nuclear i
incident occurs in the course of transportation of the radioactive material, on the transporting vehicle, and (b) in connectirn with the licensee's possession, use or transfer of the radioactive material; (2) claims arising out of an act of war; and (3) claims for-loss of, or damage to, or loss of use of (a) property which is located at the location and used in connection with the licensee's
.a possession, use, or transfer of the radioactive material, and (b) if the nuclear incident occurs in the course of transportation of the radioactive j
material, the transporting vehicle, containers used in such transportation, and the radioactive esterial.
Paragraph 4(c), Article 11 is revised to read as follows:
(c) Any issue or defense based on any statute of limitations if suit is instituted within three years from the date on which the claimant first knew, or reasonably could have known, of his injury or damage and the cause thereof.
2 In paragraph 1, Article VIII, the amount "$5,000,000" is deleted and the amount "$63,000,000" is substituted therefor.
Item 2a of the Attachment to the indemnity agreement is deleted in its entirety and the following substituted therefor:
Item 2 - Amount of financial protection a.
$1,000,000 (From 12:01 a.m., December 4,1961, to 12 midnig t,tiarch 25, 1962, inclusive
$60,000,000 (From 12:01 a.m., March 26, 1962, to 12 midnight, December 31, 1965, inclusive)
$74,000,000 (From 12:01 a.m., January 1,1966, to 12 midnight, January 31, 1969, inclusive
$82,000,000 (From 12:01 a.m., February 1,1969, to 12 midnig t, February 29, 1972, inclusive
$95,000,000 (From 12:01 a.m., March 1,1972, to 12 midnig t, February 28, 1974, inclusive
$110,000,000 (From 12:01 a.m., March 1, 1974, to 12 midnight, March 20, 1975, inclusive)
$125,000,000 (From12:01a.m., March 21,1975, to 12 midnig t, April 30, 1977, inclusive
$140,000,000*
(From 12:01 a.m., May 1,1977, to 12 midnig t, April 30, 1979, inclusive
$160,000,000*
(From 12:01 a.m.,.May _1,1979, to-12 midnig t, June 30, 1989 inclusive
$200,000,000*
(From 12:01 a.m., July 1, 1989
)
M
- and, as of August 1,1977, the amount available as secondary financial protection, except that no participation in the secondary financial protectior program shall be required with respect to a reactor which has been permanently shut down, and where the licensee's authority to operate the unit as a power reactor has been revoked by the Comission.
4 3
FOR THE U.S. NUCLEAR REGULATORY COMMISSI0il O
Eileen ti. McKenna, Acting Chief Policy Development and Technical Support Branch Program llanagement, Policy Development-and Analysis Staff.
Office of Nuclear Reactor Regulation k ( 7
, 1989 Accepted By Cons date'd Edison Co. of
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