ML20153D908

From kanterella
Jump to navigation Jump to search
Submits Addl Info Supporting 850726 Request for Exemption from Full Amount of Available Onsite Primary Property Damage Insurance & Continuation of Exemption from Excess Property Insurance Requirements
ML20153D908
Person / Time
Site: La Crosse File:Dairyland Power Cooperative icon.png
Issue date: 02/19/1986
From: Shimshak R
DAIRYLAND POWER COOPERATIVE
To: Zwolinski J
Office of Nuclear Reactor Regulation
References
NUDOCS 8602240294
Download: ML20153D908 (2)


Text

%D 'io'\\

^'

D DA/RYLAND hh COOPERA TlVE

  • P O. BOX 817 2615 EAST AVE. SO

/

(608) 788-4000 February 19, 1986 Mr. John A. Zwolinski, Director BWR Project Directorate #1 Division of BWR Licensing U.S. Nuclear Regulatory Commission Washington, D.C.

20555

Subject:

Dairyland Power Cooperative La Crosse Boiling Water Reactor (LACBWR)

Provisional Operating License No. DP*l-45 On-Site Property Damage Insurance

Reference:

1) DPC Letter, Taylor to Director NRR i

dated July 26, 1985

2) DPC Letter, Shinshak to Zwolinski dated July 12, 1985

Dear Mr. Zwolinski:

Our letter, Reference 1, requested an exemption from the full amount of available on-site primary property damage insurance for the La Crosse Boiling Water Reactor (LACBWR) as set forth in 10CFR 50.54 (w)(1) to a level of $180 million and a continuation of the exemption from excess property insurance requirements.

Due to a recent change in the language of 10CFR 50.12, the section of NRC regulations governing exemptions, we find it necessary to submit information pertinent to our exemption request which addresses specific conditions and special circumstances discussed in 10CFR 50.12 (a)(1) and (2)(iii).

At the present time, compliance with 10CFR 50.54(w) requires that we maintain $500 million coverage for property damage and clean-up costs in.the event of an accident at the La Crosse Boiling Water Reactor. The annual premium for this amount of insurance currently is $496,033.

Technical information provided earlier by us to the Cosmiission, Reference 2, supported the conclusion that post accident recovery costs from an accident involving 100 percent cladding failure and 50 percent fuel melticg would amount to $179,325,150.

For rating purposes, this figure was rounded off to $180 million.

It should be noted that this cost included'a 25 percent contingency.

The above-mentioned accident analyzed for LACBWR is a Scenario 3 accident as categorized in NUREG/CR2601.

A TMI-2 type e.ccident is less severe and in classified as a Scenario 2 accident. The maximum credible accident postulated for LACBWR is less severe than a Scenario 3 accident.

8602240294 860219 PDn ADocn o5000409 vol

pg J

PDR i

a-sa Mr. John Zwolinski February 19, 1986 Inasmuch as technical information demonstrates that $180 million property damage insurance is adequate and reasonable for clean-up expennes for this small nuclear plant, we find-that the requirement to comply fully with the regulation places an undue economic hardship and burden on Dairyland Power Cooperative. Maintaining a lower level of property damage insurance as requested, will provide financial savings of approximantely $207,000 per year.

In our opinion, the facts stated above constitute special circumstances within the intent of 10CFR 50.12 and the granting of an exemption from the full requirements of 10CFR 50.54(w) is merited.'

Sincerely, DAIRYLAND POWER COOPERATIVE C2.3.yW l--- A.

As i

Richard E. Shinshak, Manager Special Naclear Projects L

RES/pjf c

J. Taylor J. Parkyn H. Devino R. Mueller E. Tresmael W. Manion J. May J. Thie STATE OF WISCONSIN )

)

COUNTY OF LA CROSSE )

Personally came before me this 19 day of February, 1986, the above named Richard E. Shiashak, to me known to be the person who executed the foregoing instrument and acknowledged the same.

W Notary Publi[g/

La Crosse C#unty, Wisconsin.

My Commission Expires 2/21/88

.