ML20155F702

Temporary Exemption from 10CFR 50.54(w)(5)(i) Requirements Until Completion of Pending Rulemaking Extending Implementation Date Specified But Not Later than 890401

ML20155F702
Person / Time
Site:	Fort Calhoun
Issue date:	09/30/1988
From:	Holahan G Office of Nuclear Reactor Regulation
To:	OMAHA PUBLIC POWER DISTRICT
Shared Package
ML20155F685	List: ML20155F682 ML20155F702
References
NUDOCS 8810130362
Download: ML20155F702 (4)

Text

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s UNITED STATES OF AMERICA >

NUCLEAR REGULATORY COPMISSION In the matter of

! OMAHA PUBLIC POWER DISTRICT Docket Ns. 50-285 (Fort Calhoun Station Unit 1)

EXEMPTION I.

Omaha Public Power District (the licensee) is the holder of Facility Operating License No. OPR 40, which authorizes operation of the South Texas l Project, Unit 1. The license provides, among other things, that it is subject to all rules, regulations, and orders of the Corrissien now or hereafter in effect.

The facility consists of a pressurized water reactor at the licensee's site located in Washington County, Nebraska.  ;

II.

.! On August 5,1987, the NRC published in the FEDERAL REGISTER a final rule  !

J annding 10 CFR 50.54(w). The rule increased the amount of en-site property damage insurance required to t,e carried by NRC's power reactor licensees. The 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 would disburse funds for decontamination and cleanup before any other purpose.

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 trustees required by the rule, the decontamination priority and trustecship provisions will not be able to be incorporated into policies by the time required

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in the rule. In response to these coments and related petitions for rulemaking, ,

the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implenentationschedulefor18 months (53FR36338, September 19,1988).  !

However, because it is unlikely that this rulemaking action will be completed by October 4,1988, the Commission is issuing a temporary exemption from the requirenents of 10 CFR 50.54(w)(5'(1) until completion of the pending rulemaking extendingtheimplenentationdatespecifiedin10CFR50.54(w)(5)(i),butnot later than April 1, 19F9. Upon completion of such rulemaking, the licensee shall ccrply with the provisions of such rule.

III.

Pursuant to 10 CFR 50.12. "The Comission may, upon application by any interested person or upon its own initiative, grant exemptions from the requiren'ents of the regulations of [10 CFR Part 50],whichare... Authorized by law, will not present an undue risk to the public health and safety, and are consistut with the comon defense and security." Furthtr,Section50.12(a)(2) ,

provides inter alie, "The Comission will not consider granting an exemption unless special circunstances are present. Special circumstances are present whenever ... (v) The exemption would provide only temporary relief f rom the applicable regulation and the licensee has made good faith efforts to croply with the regulation."

Despite a good faith effort to comply with the p~ovisions of the rule, insurers providing property damage insurance for nucleer power facilities and licensees insured by such insurers have not been able to comply with the segulation and the exemption provides only temporary relief from the applicable I regulation.

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As noted by the Comission in the Supplementary Information accompanying I

the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamination priorityandtrusteeshipprevisionsofSection50.54(w)willnotadversely affect protection of public health and safety. First, during the period of delay, the licensee will still be required to cerry $1,06 billion insurance.

This is a substantial amount of coverage that provides a significant financial

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cushion to licensees to decontaminate and clean up after an accident even <

without the prioritiration 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 be able to take appropriate enforcement action to assure adequate cleanup to protect i

public health and safety and the environment.

IV.

Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(?).

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

Omaha Public Power District is exempt from the requirenents of 10 CFR 50.54(w)(5)(1) until the completion of the pending rulemaking extending the implementation date specified in 10 CFR 50.54(w)(5)(1), but not later than April 1, 19P9. Upon completion of such rulemaking the licensee shall comply with the provisions of such rule.

Pursuant to 10 CFR 51.??, the Comission has determined that the granting of this exemption will not result in any significant environrental impact (53 FR 38382).

This exemptfore is effective upon issuance.

Dated at Rockville, Maryland tnis 30th day of September , 1988.

FOR THE NUCLEAR REGULATORY COMMISSION p

Gary M. Holahan, Acting Director Division of Reactor Projects - !!!,

IV, V and Special Projects Office of Nuclear Reactor Regulation

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