ML20155A029
| ML20155A029 | |
| Person / Time | |
|---|---|
| Site: | Cook  |
| Issue date: | 09/30/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | INDIANA MICHIGAN POWER CO. (FORMERLY INDIANA & MICHIG |
| Shared Package | |
| ML20155A027 | List: |
| References | |
| NUDOCS 8810050181 | |
| Download: ML20155A029 (4) | |
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L 7590-01 L i
UNITED STATES OF AMERICA i NUCLEAR REGULATORY COMISSION -
- l. In the matter of ) .
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, INDIANA MICHIGAN POWER COMPANY ) Dockets Nos. 50015 and 50-316 ;
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(Donald C. Cook Nuclear Plant ) {
i Units Nos. I and 2) ) L 1 !
EXEMPTION L
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f Indiana Michigan Power Company (the licensee) is the holder of Facility f l Operating Licenses Nos. OPR-58 and DPR-74, which authorize operation of the 1
i Donald C. Cook Nuclear Plant, Units Nos. 1 and 2. The licenses provide, among ;
l other things, that Donald C. Cook Nuclear Plant, Units Nos. I and 2, are subject .
', to all rules, regulations, and orders of the Nuclear Regulatory Coralssion (the !
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i Commission) now or hereafttr in effect, i !
j The facility consists of pressurized water reactors at the licensee's site
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located in Berrien County, Michigan. !
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l On August 5,1987, tne Commission pub 11sNd in tne FF.DERAL REGISTER a final I rula amending 10 CFR 50.54(w). The rule increased the amount of on-site property f L
} damage insurance requirad to be carried by the Commission's power reactor !
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1 licensus. The rule also required these licensees to obtain by October 4, 1988, i insurance policies that prioritized Insurance proceeds for stabilization and I r
1 i I decontamination after an accident and provided for payment of proceeds to an j independent trustee who would disburse funds for decontamination and cleanup
- before any other purpose. Subsequent to publication of the rule, the Comission i I
i has been informed by insurers who offer nuclear property insurance that, despite :
a good faith effort to obtain trustees required by the rule, the decontamination f ;
l priority and trusteeship provisions will not be able to be incorporated into !
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policies by the time required in the rule. In response to these comments and related petitions for rulemaking, the Commission has proposed a revision of 10 f I
- CFR 50.54(w)(5)(i) extending the implementation schedule for 18 months (53 FR i
! 36338, September 19, 1988). However, because it is unlikely that this i a :
1 rulemaking action will be completed by October 4,1988, the Coinmission is !
j issuing a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(i) until cortpletion of the pending rulemaking extending the implementation date
! specified in 10 CFR 50.54(w)(5)(1), but not later than April 1, 1989. Upon !
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l completion of such rulemaking, the licensee shall comply with the provisions I i
of such rule, f 5; !
t III.
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- Pursuant to 10 CFR 50.12, "The Commission may, upon apolication by any l
interested person or upon its ewn initiative, grant exemptions from the ;
- . t j requirements of the regulations of f " rA Part 50], which are ... Authorized i i t,y law, will not present an undue riss to the public health and safety, and are I
- consistent with the common defense and security." Further, Section 50.12(a)(2) j 1 !
i provides inter alia, "The Commission will not corsider granting an exenption j i :
l unless special circumstances are present. Special circumstances are present !
I j whenever ... (v) The exemotion would provide only temporary relief from the l j !
j applicable regulation and the licensee has made good faith offorts to comply ;
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j with the regulation." j i ,
i Despite a good faith effort to comply with the provisions of the rule, !
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] insurers providing property damage insurance for nuclear power facilities and !
- i j licensees it;,n ed by such insurers have not been able to comply with the [
regulation aM the exemption provides only terrporary relief from the applicable ;
j regulation. f
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As noted by the Commission in the Supplementary Information accompanying !
4 the proposed rule, there are several reasons for concluding that delaying for i l a reasonable time the implementation of the stabilization and decontamination j L
priority and trusteeship provisions of Section 50.54(w) will not adversely !
affect protection of public health and safety. First, during the period of !
t delay, the licensee will still be required to carry $1.06 billion insurance.
j f This is a substantial amount of coverage that provides a significant finracial .
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cushion to licensees to decontaminate and clean up after an accident even f without the prioritization and trusteeship provisions. Second, nearly 75% of l (
the required coverage is already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance I j Limited-II policies. Finally, tnere is only an extremely small probability of ,
i t j i se'icus ar,cident occurring during the exemption period. Even if a serious (
l f accident gfving rise to substantial insurance claims were to occur, the !
t Commission would be able to take appropriate enforcement action to assure j adequate cleanup to protect public health and safety and ^he envirenment, f
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IV. I t
! Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a), !
4 L j that (1) a temporary exemption as described in Section Ill is authorized by !
! t i law, will not present an undue risk to the public health and safety, and is f i
t consistent with the common defense and security and (2) in this case, special j circumstances are present as described in Section !!!. Therefore, the i
! Commission hereby grants the following exemption: ;
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1 Indiana Michigan Power Company is exer.pt from the requireraents of 10 CFR i 50.54(w)(5)(i) until the completion of the pending rulemaking extending the i implementation date specified in 10 CFR 50.54(w)(5)(i), but not later than 4 April 1, 1989. Upon completion of such rulemaking the licensce shall l
comply with the provisions of such rule.
- Pursuant to 10 CFR 51.32, the Commission has determined that the granting
! of this exemption will not result in any significant environmental impact 1
(53 FR38123 ).
j This exemption is effective upon issuance.
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Dated at Rockville, Maryland this 30th day of September , 1988.
] FOR THE NUCLEAR (EGULATORY COMMISSION i.
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! Gary M. Holahan, Acting Director j Division of Reactor Projects - III, IV V and Special Projects
- Office of Nuclear Reactor Regulation t
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