ML20155E996

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Exemption from 10CFR50.54(w)(5)(i) Requirements Re Licensees Obtaining Insurance Policies That Prioritize Insurance Proceeds for Stabilization & Decontamination After Accident
ML20155E996
Person / Time
Site: Shoreham File:Long Island Lighting Company icon.png
Issue date: 10/07/1988
From: Varga S
Office of Nuclear Reactor Regulation
To:
LONG ISLAND LIGHTING CO.
Shared Package
ML20155E970 List:
References
NUDOCS 8810130084
Download: ML20155E996 (4)


Text

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

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LONG ISLAND LIGHTING COMPANY

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Docket No. 50-222 Shoreham Reclear Power Station

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, EXEMPTION I.

Long Island Lighting Coreany (the licensee) is the holder of Facility Operating License No. NPF-36, which authorizes operation of the Shoreham l

Nuclear Pcwer Station. The license provides, among other thirgs, that it is subject to all rules, regulations, and crders of the Ccm ission now or hereafter 1

in effect.

The facility consists of a boiling water reactor at the licensee's site I

located in Suffolk County, New York.

II.

On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule arrending 10 CFR 50.54(w). The rule increased the amount of en-site property damage insurarce required to be carried by NRC's power reactor licensees. The rult 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 would disburse funds for decontamination and cleanup before any other purpose.

Subsequent to publication of the rDe. the NRC has been informed by insurers who offer nuclear property insurance that, despite a goed faith effort to obtain 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 coc1ments and related petitions for rulemaking6

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. the Cormissien has proposed a revision of 10 CFR 50.54(w)(5)(i) extending the implementation schedule for 18 months (53 FR 36338, Septerrber 19,1988).

Fowever, since the rulemaking action was not completed by October 4, 1988, the 3

Comissicn is issuing a temporary exen.ption frcm the requirements of 10 CFR 50.54(w)(5)(i) until cerrpletion of the pending rulemaking extending the irrplementation date specif < u in 10 CFR 50.54(w)(5)(i), but not later than April 1, 1989.

Upen completion of such rulemaking, the licensee shall comply with the provisicris of such rule.

III.

Pursuarit to 10 CFR 50.12 "The Cermission tray, upon application by any interested perser or upon its own initiative, grant exemptior.: from the requiretrents o' the regulatiens 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 conron defense and security."

Further, Secticn 50.12(a)(2) provides inter alia, "The Comissien will not consider granting an exemption unless special circurrstances are present.

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

Despite a good faith effort to cerrply with the provisions of the rule, insurers providing property damage insurance fcr r.uclear power facilities and licensees insured by such insurers have not been able to comply with tFe regulatier and the exerrption provides only terrporary relief from the apphcable regulation.

. As noted by the Connission in the Supplementary Information accompanying

- tne proposed rule, there are several reasons for concluding that delaying for a reasonable time the irrplementation of tw stabilization and decontamination priority and trusteeship provisions of Secticn 50.5a(w) will not adversely affect protection of public health and safety.

First during the period of delay, the licensee is required to carry at least $337 million insurance.

Pecause shoreham Fuclear Power Strtion (SNPS) is operating at less than five percent, the licensee has been exempted from carrying $1.06 billion until such time as an authorization to operate SNPS at power levels greater than i

4 five percent is granted (93 FR 21955, June 10, 1988).

This is a substantial amount of coverage that provides a significant financial cushion to licensees t3 decontanirate and clean up after an accident even without the prioritization and trusteeship provisions.

In addition, there is only an extremely small probability of a serious accident occurring during the exemption perind.

Even if a serious accident givir.g rise to substantial insurance claims were to occur, NRC would be able to take approoriate enforcement action to assure adeqt; ate cleanup to protect public health and safety and the environment.

IV.

I Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),

that (1) a temporary exemption as described in Section ill, is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the entrrron defense and security and (2) in this case, special circumstances are present as described in Section III.

Therefnre, the Consnission hereby grants the following exenption:

i Long Island lighting Company is exempt from the reauirements of 10 CFR 50.54(w)(5)(1) ur.til the completion of the pending rulemakir.g extending the implementation date specified in 10 CFR 50.54(w)(5)(1). but not later than April 1, 1989. Upon completien of such rulemaking th! licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 51.32, the Commissien has determined that the granting of this exemptien will not result in any significant environmental impact (53 FR 38817) (53 FR 39549

).

This exemption is effective upnn issuance, t

i Dated at Rockville, Maryland this 7th day of October

. 1988.

FOR THE NUCLEAR REGULATORY COMMISSION n

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Office of Nuclear Reactor Regulation

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