ML20155F350

Federal Register Notice of 10CFR50, Preliminary Criterion on Use of Non-Owner Operating Companies

ML20155F350
Person / Time
Issue date:	10/09/1998
From:	NRC
To:
References
FRN-63FR54389, RULE-PR-50 NUDOCS 9811060007
Download: ML20155F350 (4)

Text

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I Federal Register /Vol. 63. No.196/Fridiy, October 9,1998/ Proposed Rules 54389 I l

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NUCLEAR REOUi.ATORY j CORMSSION  ;

10 CFR Port 60

. Preliminary Criterion on the Use of Non. Owner Operating Compenlos AGENCY: Nuclear Regulatory Commission.

ACDON: Proposed criterion for non-owner operating service companies.

suensAny: In anticipation of an expected increase in the use of non-owner operating companies, the NRCis seeking public comment on a proposed evaluation criterion concerning whether ~

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the use of contract service operating companies in connection with the operation of nuclear power reactors requires approval by the NRC under the regulations governing transfer of licenses. Comments on other criteria that should be considered concerning 9811060007 981009 e" nonewner operators are also invited.

PDR- PR Publication of drah regulatory guidance 50 63FR54389 PDR related to the screening criteria for the

.a transfer of licenses is scheduled for June pQOO4 1990.

DATES: Comments should be submitted by January 15,1999. Commenu received aAer this date will be considered if it is practical to do so, but assurance of consideration cannot be given except as to comments received on or before this date, pd-// b -'

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54390 Fed;r:1 Regist:r/Vol. 63, No.196/ Friday, October 9,1998/ Proposed Rulu I when Entergy Operations,Inc., a recognizes that various alternative and ADDRESSEst Ma!! comments to: potentially complex non-owner operator Secretary, U.S. Nuclear Regulatory subsidiary of Entergy Corporation, became the licensed operator at the arrangements may be pursued by Commission, Washington, D.C. 20555, same time Entergy Corporation acquired licensees. With regard to such new Attention: Rulemakings and arrangements, the NRC staff recognizes Culf States Utilities, the former Adjudications Staff. that the decision on whether 10 CFR Deliver comments to: 11555 Rockville operator. En each of these cases, there 50.80 consent is necessary, as discussed Pike, Rockvitie, Maryland, between 7:30 was no wholesale change of operating a.m. and 4:15 p.m., Federal workdays. personnel, only a transfer of the axisting in SECY-97-144, depends on the extent to which the ability to control Examine copies of comments received operating organization to a new operations (within the broadest sense of at the NRC Public Document Room, operatirg company. In each of these cases, the licensees recognized that the Commission's regulations and the 2120 L Street NW (Lower Level), terms of the operating license)is being review and approval under to CFR Washington, D.C. transferred and the degree of autonomy FOR FURTHER INFORMATION CONTACT: 50.80 was necessary'e,in in another exampl early 1997, granted to the operating company. The Michael J. Davis, Office of Nuclear Maine Yankee Atomic Power Company NRC staff also recognizes that a more Reactor Regulation U.S. Nuclear (MYAPC) entered into a management detailed criterion for the submission of Regulatory Commission, Washington, services agreement with Entergy new arrangements pursuant to 10 CFR DC 20555, telephone (301) 415-1016, e- Nuclear,Inc., to provide operations 50.8U for NRC review and consent could mail mid1@nrc. gov. management personnel, including the be helpful in identifying for licensees SUPPLEMNTARY INFORMAflON: positions of Maine Yankee President the NRC staff's information needs for and Vice President, Licensing. The such reviews, thereby contributing to

Background

Entergy personnel provided were to more timel reviews.

" become employees of MYAPC while at The NR staff has developed a Adm tra i e tte (A )9 2 the same time remaining employees of pro osed criterion regarding changes to

,, Licensee Res onsibilities Relaty t Entergy Nuclear,Inc., and would serve nuc ear plant operating enthies by FinancialQua ifications, reminding at the pleasure of and take direction which the need for NRC review and power reactor licensees of their ongoing from the MYAPC Board of Directors. consent under 10 CFR 50.80 can be ohligation to seek and obtain prior MYAPC stated in a letter dated February judged.The NRC staff has focused this written consent from the NRC for any 6,1997, to the NRC that it had criterion on the concept of final changes that would constitute a transfer concluded that neither the management decisionmaking authority:lf an of an NRC license, directl or indirectly, services agreement with Entergy nor the operating service company provides through transfer of contro of the license specific management changes would advice but does not make the flaal pursuant to 10 CFR 50.80 and Section require prior NRC approval or a decision in a particular area tluLt cannot 184 of the Atomic Energy Act as Technical Specification (TS) change. be overruled or is not subject to reversal amended. AL 96-02 primarily The NRC staff concurred with this licensee, then there has addressed restructuring activities, such assassment, since MYAPC retained by been the no existinfer trans of operating authority as mergers, the formation of holdin8 ultimate safety-related decisionmaking for that area. The areas to be considered companies, and sales of facilities or authority and Entergy personnel were include the following:

portions of facilities. concurrently to become employees of

• Decision to shut down for repairs.

The use of service companies t MYAPC. . Decision to start up the plant.

provide operational support in the A similar management services . Approval of licensee event reports.

operation of nuclear power facihties agreement was initiated in early 1998 in

• Decision on whether to make a 10 may also require NRC review and which Illinois Power contracted with CTR 50.72 report.

approval and a conforming license PECO Energy to provide certain . Authority to make operability amendment, depending on the extent to management, technical, and support determinations.

which the ability to control operations services to Clinton Power Station (CPS). . Authority to change staffing levels.

is being transferred and the degree of The senior managers provided by PECO e Authority to control the terms of autonomy being granted to the operating Energy were integrated into the Illinois employme'nt for licensed staff.

Povar organization and are subject to e Authority to make organizational company.

There has been limited experience the direction of Illinois Power. The most changes.

senior PECO Energy manager, serving as

• Decision to defer repairs.

with the introduction of non-owner

• Authority for quality assurence operating companies. In most instances Chief Nucleal Officer for CPS, also to date, an existing operating became a dual employee and a corporate responsibilittes (selecting audits, organization was spilt off from the officer of Illinois Power. Illinois Power approving audit reports, accepting audit owner and transferred to a newly stated in a letter dated January 23,1998, responses).

that it had " concluded that neither the

• Budget-setting and spending formed operating company affiliated with the owner and its parent company. Management Services Agreement with authority.

• Decision to continue operation with Examples include the transfer approval PECO Energy nor the resulting specific and license amendments for Farley management changes require NRC equipment probioms.

• Authonty over the design control of Units 1 and 2, flatch Units 1 and 2, and approval. Illinois Power remains the the facility.

Vogtle Units 1 and 2 when Southem oprating licensee for CPS, with

• Decision to continue operations or Nuclear Operating Company became the ultimate authority to control, and rv sponsibility for, safe plant operation Permanently ceuse operatJon.

licensed operator of the facilities in If a threshold review indicates that place of Alabama Power Company and and regulatory compilance." The NRC the new entJty is being granted such Ceorgia Power Company. All three concurred with that assessment. final decisionmaking authority in these companies are subsidiaries of the Discussion areas, then the NRC staff would expect Southern Company. Another similar the licensee to request full NRC review example is the transfer approval and As nuclear utilities evolve within a license amendment for River Bend Unit deregulated environment, the NRC staff ans consent under 10 CFR 50.8u. If the

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Federal Register /Vol. 63, No.196/ Friday, October 9,1998/Propostd Rults 54391 NRC stal! concludes that the new entity 5

ic quallAed to become a licensee, an order approving b proposed transfer would be issued. Before implementation -

of the transfer, a conforming license *

. amendment request would need to be

. subcittxi and, following consent under to CPR 50.80, the license would be Jameaded upon implementation of the - ,

transfer to reAect b new transferee.

. In addition to this prelitainary criterion, the NRC staff notes that lines of authority and responsibility in the --

organisational chain of command are

. spacined in plant Technical Specincations (TS) in the administrative controls section (Section 5.0 of the s Standard TS) or in Updated Final Safety Analysis Reports (UFSAR). When -

' considering the use of service company

~ management talent,the NRC staff expects licensees to consider the licensing basis to identify what management structure, authorities, and responsibilities were previously .

approved. If the lines of authority or responsibilities specified in the TS are being materially changed, b change

. would need review and approval by NRC as a license amendment under 10-'

CFR 50.90 before implementation. The NRC staff expects that licensees will -

. ensure that service company personnel meet UFSAR or TS-speciAed educational and experience .

sequirements for the positions they will

' he taking and will seek approval for any

' license changes they deem necessary.

Licensees and members of the public are invited to submit comments on the proposed criterion regarding changes to nuclear plant operating entities by which the need for 10 CFR 50.80 consent can be determined. Comments

' on other criteria that should be considered concoming non. owner cperators are also invited.'

' Dated at Rockville, Maryland, this 5th day of October,1994.

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For the Nuclear Itagulatory Commission.

Jehe C. Hoyle.

Secretaryof the Commiselon.

(fit Doc. 9s-27200 Filed 1M; a:45 am]

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