ML20155G096
| ML20155G096 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 09/30/1988 |
| From: | Holahan G Office of Nuclear Reactor Regulation |
| To: | WOLF CREEK NUCLEAR OPERATING CORP. |
| Shared Package | |
| ML20155G094 | List: |
| References | |
| NUDOCS 8810140076 | |
| Download: ML20155G096 (4) | |
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of WOLF CREEK NUCLEAR OPERATING CORPORATION Docket No. 50-482 (Wolf Creek Nuclear Generating Station)
EXEMPTION 1.
Wolf Creek Nuclear Operating Corporation (the licensee) is the holder of Facility Operating License No. NPF-42, which authorizes operation of the Wolf Creek Nuclear Generating Station. The license provides, among other things, that it is subject to all rules, regulations, and orders of the Coninission new or hereafter in effect.
The facility consists of a pressurized water reactor at the Itcensee's site located in Coffey County, Kansas.
On Augu',t S.198', the NRC published in the FEDERAL REGISTER a final rule I
amending 10CFR50.55(w). The rule increasec the amount of on-site property dan. age insurance required to be 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
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an accident and provided for payrent 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 inforred by insurers who offer nuclear property insurance that, despite a good faith effort to obtain trustees required by the rule, the decontamination priority and trusteeship provisient will not be able to be incorporated into policies by the time required SS10140076 880930 PDR ADOCK 05000482 PDC
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 implenentation schedule for 18 months (53 FR 36338, September 19,1988).
However, because it is unlikely that this rulemaking action will be completed by October 4,1988, the Comission 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 shall conply with the provisions of such rule.
Pursuant to 10 CFR 50.12, "The Comission may, upon application by any interested person or upon its own initiative, grant exemptions from the l
requirenents 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 co m on defense and security." Further Section 50.12(a)(2) provides inter alia, "The Comission will not consider granting an exenption J
unless special circumstances are present. Special circumstances are present
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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."
Despi*e a good faith effort to comply with the provisions of the rule, 1
insurers providing property damage insurance for nuclear power facilities and licensees insured by such insurers have not been able to comply with the regulation and the exenption provides only temporary relief from the applicable j
regulation, i
As noted by the Comission in the Supplerentary Infomation accompanying I
the proposed rule, there are several reasons for concluding that delaying for a reasonable time the implementation of the stabilization and decontamination priority and trusteeship provisions of Sectiun 50.54(w) will not adversely affect protection of public health and safety.
First, during the period of delay, the iicensee 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-!! 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 public health and safety and the environment.
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IV.
l Accordingly, the Comission has determined, pursuant to 10 CFR 50.12(a).
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that (1) a temporary exemption as described in Section !!I. is authorized by i
I law, will not present an undue risk to the public health and safety, and is consistent with the comen defense and security and (?) in this case, special circumstances are present as described in Section III. Therefore, the Comission hereby grants the following exemption:
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Wolf Creek Nuclear Operating Corporation is exempt from the requirements of 10 CFR 50.54(w)(5)(1) until the completion of the pending rulemaking extending the impletrentation date specified in 10 CFR 50.54(w)(5)(1), but not later than April 1, 1989. Upon completion of such rulemaking the j
licensee shall comply with the provisions of such rule.
l Pursuant to 10 CFR 51.32, the Commission has determined that the granting of this exemption will not result in any significant environnental impact (53FR 38392),
This exefrption is effective upon issuance.
Dated at Rockville, Maryland this 30th day of September
, 1988.
FOR THE NUCLEAR REGULATORY COMMISSION pk Gary M. Holahan, Acting Director Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation l
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