ML20151C687

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Responds to ,Forwarding Jd Hawkins Ltr.Informs That Amended Atomic Energy Act of 1954 Governs NRC Licensing Procedures & That NRC May Not Legally Take Financial Hardships Into Consideration in Making Licensing Decisions
ML20151C687
Person / Time
Issue date: 03/16/1988
From: Parler W
NRC OFFICE OF THE GENERAL COUNSEL (OGC)
To: Chiles L
SENATE
References
NUDOCS 8804130133
Download: ML20151C687 (2)


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March 16, 1988 The Honorable Lawton Chiles United States Senate Washington, D.C.

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Dear Senator Chiles:

This responds to your letter of February 22, 1988 which forwards correspondence to you from your constituent John D. Hawkins so that the agency may provide its views, Mr. Hawkins asserts that he holds a substantial amount of Public Service Company of New Hampshire debentures and is consequently seriously troubled by the Chapter 11 bankruptcy filing by that company.

In that connection he criticizes the procedure that permits authorization of construction to be oranted and then operational function to be denied. He asks in particular whether the NRC intends to assume a strong positin in getting plants like Seabrook on line.

The Atomic Eneroy Act of 1954, as amended, coverns the Comission's licensing procedures for nuclear reactors. The Congress specifically provided for a two tiered licensing process.

First, in order to receive a permit to construct a nuclear plant the applicant must meet the relevant Comission regulations which are designed to ensure that the plant, when built, will operista in a manner consistent with the public health and safety and the common defense and security. The application must also undergo various environmental and antitrust considerations.

In order to receive an operating license, additional requirements must be met to assure that the plant is constructed to the approved design and with an assurance of ouality so that it may operate in a fashion that provides adequate assurance that the public is protected.

In addition, the license application must meet certain energency planning recuirements established to assure that, in the event there should be a nuclear accident, adequate provisinns have been made for the public safety.

The Atomic Energy Act also provides that parties with an interest in the proceeding may participate in an adjudicatory hearing on the orant of the construction permit or license to operate.

The agency's licensing decisions in these adjudications r:ust be made on the basis of the hearino record. Such a hearing is now in progress with respect to the Seabrook plant. Because the Comission itself is the final decisionmaker within the agency, the Comission may not properly discuss the issues before it outside of the context of the hearing. When the Comission makes any decision in the Seabrook matter, it will be on the public record and readily available to you and your constituent.

As a final matter, althouah financial hardships such as those mentioned by Mr. Hawkins are unfortunate and recrettable, the Comission may not leoally 8804130133 090316 PDR COMMS NRCC CORRESPONDENCE PDR

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take such concerns into consideration when makina their licensina

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decisions. The Commission's licensing decisions must be governed by the standards enacted by the Congress:

to ensure the health and safety of the public and the comon defense and security.

I hope this response will serve your needs.

Sincerely,

\\b William C. Parler General Counsel l

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