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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i UNITED STATES OF AMERICA i
NUCLEAR REGULATORY COMISSION l.
In the matter of
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f INDIANA MICHIGAN POWER COMPANY
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Dockets Nos. 50015 and 50-316
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(Donald C. Cook Nuclear Plant
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i Units Nos. I and 2)
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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
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Donald C. Cook Nuclear Plant, Units Nos. 1 and 2.
The licenses provide, among 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.
II.
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
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damage insurance requirad to be carried by the Commission's power reactor J
l licensus.
The rule also required these licensees to obtain by October 4, 1988, i
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insurance policies that prioritized Insurance proceeds for stabilization and r
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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
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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 t
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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
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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 i
l completion of such rulemaking, the licensee shall comply with the provisions I
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of such rule, 5;
t III.
i 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
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unless special circumstances are present.
Special circumstances are present I
j whenever... (v) The exemotion would provide only temporary relief from the l
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applicable regulation and the licensee has made good faith offorts to comply i
j with the regulation."
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Despite a good faith effort to comply with the provisions of the rule, i
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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
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regulation aM the exemption provides only terrporary relief from the applicable l
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regulation.
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As noted by the Commission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for i
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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
j delay, the licensee will still be required to carry $1.06 billion insurance.
f This is a substantial amount of coverage that provides a significant finracial 1
l cushion to licensees to decontaminate and clean up after an accident even f
l without the prioritization and trusteeship provisions.
Second, nearly 75% of
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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
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i se'icus ar,cident occurring during the exemption period.
Even if a serious
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f accident gfving rise to substantial insurance claims were to occur, the l
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
P IV.
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t Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),
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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
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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 April 1, 1989.
Upon completion of such rulemaking the licensce shall 4
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.
Dated at Rockville, Maryland this 30th day of September
, 1988.
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FOR THE NUCLEAR (EGULATORY COMMISSION i.
b J h 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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