ML20141P065
| ML20141P065 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 03/14/1986 |
| From: | Holloway C NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | Leonard J LONG ISLAND LIGHTING CO. |
| References | |
| NUDOCS 8603180508 | |
| Download: ML20141P065 (7) | |
Text
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DISTRIBUTION:
PDR LPDR Reg File PGNorry, ADM MSpringer, Adit MAR 141986 Actual Manpower File Inspection Fee File GJohnson, RM/A RRakowski, RM/A MRodriguez, Rfi/A SB]
Docket No. 50-322 g
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Long Island Lighting Company jp ATTN: Mr. John D. Leonard, Jr.
Vice President - Nuclear Operations Shoreham Nuclear Power Station P.O. Box 618, North Country Road Wading River, NY 11792 Gentlemen:
This is in response to your letters dated December 26, 1985 and February 24, 1986, on inspection fees assessed by' Invoices 1616V for
$84,763 and 0671W for $75.911 for the Shoreham facility. These invoices were for inspection fees for December 23, 1984 through March 30, 1985, and March 31 through June 22, 1985, respectively.
It is your contention that these fees are a part of the 100% operating license costs for which you have already paid the maximum fee of $3,077,400 specified in 10 CFR 170.21. On this basis you requested cancellation of Invoice 1616V, and postponement of the payment due date without an accumulation of interest on 0671W until your appeal on 1616V is resolved.
From the enactment of the Atomic Energy Act (the Act) and the codified regulations in 10 CFR Part 50 governing the issuance of permits and licenses for nuclear facilities, the NRC has been required to make certain findings and determinations before issuance of a permit or any license..0ne such requirement before issuance of any license is that the NRC finds that the construction of a facility has been substantially completed in conformity with the construction permit (CP) and the application, as amended, the provisions of the Act, and the rules and regulations of the NRC (currently 10 CFR 50.56 and 50.57(a)(1)). One of the processes used to make this finding is that of periodic inspections of the facility as it is being constructed. Consequently, this is a task directly related T6 operating license consideration / review and is required before the issuance of any license to a company.
Once any license is issued to a company, the facility becomes a licensed facility and the role of the inspectors and their inspection efforts thereafter are to assure that the activities authorized by that license are being conducted and carried out in accordance with the Act, regulations and terms and conditions of the license. This is required irrespective of the authorized power level of the facility. Therefore, the language contained in Footnote i of 10 CFR 170.21 does not apply to fees assessed for routine and non-routine health and safety and safeguards inspections conducted after the initial operating license is issued. Footnote 3 of 10 CFR 170.21 which relates directly to inspections confirms this position as follows:
8603180508 360314 PDR ADOCM 05000322 0
l MAR 14 1995 2
"3The amount shown represents the maximum that may be charged for each licensed (emphasis added) unit during a one-year period.
Inspections covered by this schedule are both routine and non-routine safety and safeguards inspections performed by NRC for the purpnses of reviewing a licensed program,..."
In consideration of the above, your request for cancellation of Invoice 1616V is denied. However, as you pointed out in your letter, the Brookhaven National Laboratory (BNL) contractual cost of $31,486 for the reactor safe shutdown review was improperly assessed under Invoice 1616V. The Office of Inspection and Enforcement has confirmed that the contractual cost was incurred prior to the issuance of the initial operating license on December 7,1984. As a result, the costs should be included in the costs expended to issue the initial operating license.
Therefore, Invoice 1616V (Enclosure 1) has been revised to read $53,277
($84,763-$31,486) plus interest charges. Since your December 26, 1985 letter concerning this matter was not received until approximately two months after Invoice 1616V was due, interest charges of $1,235.16 have been assessed from September 27, 1985, the date the invoice was issued, through December 29, 1985. Your letter was received by the Commission on December 30, 1985. Due to our inability to respond in a timely manner to your letter, the interest charges from December 30, 1985 to the date of the revised invoice will be waived if the revised invoice is paid within 15 days from the date of the invoice.
If the invoice is not paid within 15 days, then interest will be assessed at the rate of.
$13.14 a day from the date of the original invoice (9/27/85) and penalty charges will be assessed in accordance with item 6 of the procedures (Enclosure 2).
We have also revised Invoice 0671W (Enclosure 3) which was sent to your Company on January 24, 1986. The attachment which accompanied the invoice showed that total routine inspection costs for the period March 31, 1985 - June 29, 1985 were $75,101. The NRC credited $1,681 for contract costs leaving a balance for routine inspections of $73,420.
The $1,681 credit was related to the BNL contract on reactor safe shutdown review. Since it has been determined that the costs relating to the contract are to be included in those costs expended to issue the initial operating license, the credit of $1,681 no longer applies.
Therefore, $1,681 has been added to $73,420, the amount for routine inspections, making a total of $75,101. When this amount is added to
$2,491 for non-routine inspections, the amount of the revised invoice is
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$77,592. Since.In' voice 0671W has 3been increased, the period for payment is extended 30 days'from the date'of the revised invoice. You are
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advised that this letter constitutes final agency action with respect to the review of the debts owed the United States.
Sincerely, Signed, C. ; mas Hollowa{,4 C. James Holloway, Jr.
Acting Director License Fee Manacement Staff Office of Administration
Enclosures:
1.- Revised Invoice 1616V 2.
NRC Procedures for Extending Payment Dates...
3.
Revised Invoice 0671W v
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"3The amount shown represents the maximum that may be charged for each licensed (emphasis added) unit during a one-year period.
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Inspections covered by this schedule are both routine and non-routine safety and safeguards inspections performed by NRC for a
j-the purposes of reviewing a licensed program,..."
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In consideration of the above, your request for cancellation of Invoice 1616V is denied. However, as you pointed out in your letter, the Brookhaven National Laboratory (BNL) contractual cost of $31,486 for the reactor safe shutdown review was improperly assessed under Invoice 1616V. The Office of Inspection and Enforcement has confirmed that the contractual. cost was incurred prior to the issuance of the initial operating license on December 7,1984. As a result, the costs should be included in the costs expended to issue the initial operating license.
Therefore, Invoice 1616V (Enclosure 1) has been revised to read $53,277
.($84,763-$31,486) plus interest charges. Since your December 26, 1985 letter concerning this matter was not received until approximately two months after Invoice 1616V was due, interest charges of $1,235.16 have
(.y'bsen' ' assessed (for' September 27, 1985, the date the invoice was issued, 7
through December 29, 1985. Your letter was received by the Commission i
on December 30, 1985. Due to our inability to respond in a timely l
manner to your letter, the interest charges from December 30, 1985 to the date of the revised invoice will be waived if the revised invoice is i
paid within 15 days from the date of the invoice.
If the invoice is not paid within 15 days, then interest will be assessed at the rate of
$13.14 a day from the date of the original invoice (9/27/85) and penalty i
charges will be assessed in accordance with item 6 of the procedures l
(Enclosure 2).
We have also revised Invoice 0671W (Enclosure 3) which was sent to your Company on January 24, 1986. The attachment which accompanied the j
invoice showed that total routine inspection costs for the period March 31, 1985 - June 29, 1985 were $75,101. The NRC credited $1,681 4
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for contract costs leaving a balance for routine inspections of $73,420.
The $1,681 credit was related to the BNL contract on reactor safe 4
shutdown review. Since it has been determined that the costs relating j
to the contract are to be included in those costs expended to issue the initial operating license, the credit of $1,681 no longer applies.
Therefore, $1,681 has been added to $73,420, the amount for routine inspections, making a total of $75,101. When this amount is added to
$2,491 for non-routine inspections, the amount of the revised invoice is
$77,592. Since yew 4et4er cf February 24,1^85 concerning. Invoice i
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us/fW 0671W & M t 'ith '..c 5omu gecai.len es/Incice-1616V and since-them divised, the 30-day per4ed-feiQpayment # Iwesict 0071W F
-4w eise has be is extende ays from the date of'the revi dd invoice. You are advised th this letter constitutes final agency action with respect to the review of the debts owed the United States.
i Sincerely, 4
I C. James Holloway, Jr.
Acting Director i
License Fee Management Staff Office of Administration
Enclosures:
1.
Revised Invoice 1616V 2.
NRC P ocedures for Exte' ding Payment Dates...
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Revised Invoice 0671W i
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0671W dealt with the same question as Invoice 1616V and since the invoice has been revised, the 30-day period for payment of Invoice 0671W is extended 15 days from the date of the revised invoice. You are advised that this letter constitutes final agency action with respect to the review of the debts owed the United States.
Sincerely, C. James Holloway, Jr.
Acting Director License Fee Management Staff Office of Administration
Enclosures:
1.
Revised Invoice 1616%*
2.
NRC Procedures for Extending Payment Dates...
3.
Revised Invoico 0671W i
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