ML20155C625

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Temporary Exemption from Requirements of 10CFR50.54(w)(5)(i) Re Property Insurance Rule
ML20155C625
Person / Time
Site: Maine Yankee
Issue date: 10/04/1988
From: Varga S
Office of Nuclear Reactor Regulation
To:
Maine Yankee
Shared Package
ML20155C622 List:
References
NUDOCS 8810100123
Download: ML20155C625 (4)


Text

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7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of MAINE YANKEE ATOMIC

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Docket No. 50-309 P0k'ER COMPANY

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(Maine Yankee Atomic Power Station)

EXEMPTION I.

Maine Yankee Atomic Power Company (the licensee) is the holder of Facility Operating License No. DPR-36, which authorizes operation of the Maine Yankee Atomic Power Station (the facility).

The license provides, among other things, that it is subject to all rules, regulations, and orders of the Comission now or hereafter in effect.

The facility is a pressurized water reactor at the licensee's site in Lincoln County, Maine.

II.

On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule amending 10 CFR 50.54(w).

The rule increased the amount of on-site property damage insurance required to be carried by NRC's power reactor licensees.

The i

rule also required these licensees to obtain by October 4, 1988 insurance policies that prioritized insurance proceeds for stabilization and decontamination after an accident and provided for payment of proceeds to an independent trustee who

, [il5 would disburse funds for decontamination and cleanup before any other purpose, mmo Subsequent to publication of the rule, the NRC has been informed by insurers who offer nuclear property insurance that, despite a good faith effort to obtain cc trustees required by the rule, the decontamination priority and trusteeship provisions will not be able to be incorporated into 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 CFR 50.54(w)(5)(i) extending the implementation schedule for 18 months (53 FR 36338, September 19, 19881.

However, because it is unlikely that this rulenaking action will be completed by October 4, 1988, the Commission is issuing a temporary exemption from the requirements of 10 CFR 50.54(w)(5)(1) until completion 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 completion of such rulemaking, the licensee j

shall comply with the provisions of such rule.

III.

Pursuant to 10 CFR 50.12. "The Commission mav, upon application by any interested person or upon its own initiative, grant exemptions from the requirements of the regulations of (10 CFR Part 50), which are... Authorized by law, will not present an undue risk to the public health and safety, and are consistent with the common defense and security."

Further,Section50.12(a)(?)

provides int *r alia, "The Commission will not consider granting an exemption unless special circumstances are present.

Special circumstances are present whenever... (v) The exemption would provide only temporary relief from the applicable regulation and the licensee has made good faith efforts to comply with the regulation."

Despite a good faith effort to comply with the provisions of the rule, insurers providing prope"ty damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the regulation and the c.semption provides only temporary relief from the applicable regulation.

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As noted by the Comission in the Supplementary Information accompanying the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamination a

priority and trusteeship provisions of Section 50.54fw) will not adversely affect protection of public health and safety.

First, during the period of delay, the licensee will still be required to carry $1.06 billion insurance.

This is a substantial amount of coverage that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the prioritization and trusteeship provisions. Second, nearly 75% of the required coverage is already prioritized under the decontamination liability and excess property insurance language of the Nuclear Electric Insurance Limited-II policies.

Finally, there is only an extremely small probability of a serious accident occurring during the exemption period.

Even if a serious accident giving rise to substantial insurance claims were to occur, NRC would he able to take appropriate enforcement action to assure adeouate cleanup to protect public health and safety and the environment.

IV.

l Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a),

that (1) a temporary exemption as described in Section III. is authorized by law, will not present an undue risk to the p Alic health and safety, and is consistent with the comon defense and security and (?) in this case, special i

circumstances are present as described in Section III.

Therefore, the Comission hereby grants the following exemption:

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4 Maine Yankee Atomic Power Componay is exempt from the requireme.s of 10 t

CFR 50.54(w)(5)(i) until the completion of the pending rulemaking

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extending the implementation date specified in 10 CF7 50.54(w)(5)(i),

but not later than April 1,1989. Upon completion of o ch rulemaking j

the licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 51.32, the Comission has determined that the granting i

4 of this exemption will not result in any significant environmental impact (53 FR 38994-i This exemption is effective upon issuance.

DatedatRockville,MarylandthiskC day of L~ CI4f) ~ b, 1988.

t FOR THE N8) CLEAR REGULATORY COMMISSION i

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f-I Steven A. Varga, Division Director Division of Reactor Projects. I/II Office of Nuclear Reactor Regulation t

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