ML20155G103
| ML20155G103 | |
| Person / Time | |
|---|---|
| Site: | Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png |
| Issue date: | 10/03/1988 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | CONNECTICUT YANKEE ATOMIC POWER CO. |
| Shared Package | |
| ML20155G084 | List: |
| References | |
| NUDOCS 8810140079 | |
| Download: ML20155G103 (4) | |
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r 7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION l
In the matter of CONNECTICUT YANKEE ATOMIC Docket No. 50-213 POWER COMPANY (HaddamNeckPlant)
EXEMPTION I.
Connecticut Yankee Atomic Power Company (the licensee) is the holder of Facility Operating License No. DPR-61, which authorizes operation of the Haddam Neck Plant.
The license provides, amon9 other things, that it is subject to all rules, regulations, and orders of the Comission now or hereafter in effect.
The facility consists of a pressurized water reactor at the licensee's site located in itiddlesex County, Co"necticut, i
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II.
On August 5, 1987, the NRC published in the FEDERAL REGISTER a final rule l
amending 10CFR50.54(w).
The rule increased the amount of on-site property damage insurance required to be carried by NRC's power reactor licensees. The rule also required these licensees to obtain by October 4, 1988 insurance policles J
that pricritized insurance proceeds for stabilization and decontamination after 1
un accident and provided for payment of proceeds to an independent trustee who i
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 j
offer nuclear property insurance that, despite a good faith effort to obtain i
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 coements and related petitions for rulemaking, 4
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2-the Comission has proposed a revision of 10 CFR 50.54(w)(5)(1) extending the implementation 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 l
requirements of 10 CFR 50.54(w)(5)(i) until completion of the pending rulemaking extendingtheimplementationdatespecifiedin10CFR50.54(w)(5)(1),butnot later than April 1, 1989.
Upon completion of such rulemaking, the licensee shall comply with the provisions of such rule.
III.
Pursuant to 10 CFR 50.12. "The Commission may, upon application by any interested person or upon its cwn initiative, grant exemptions from the requirementsoftheregulationsof[10CFRPart50),whichare... 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, Section 50.12(a)(2) provides inter alia, "The Connission will not consider granting an exemption 1
l 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 coinply with the regulation."
Despite a good faith effort to comply with the provisions of the rule, j
insurers providing property damage insurance for nuclear power facilities and
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licensees insured by such insurers have not been able to comply with the I
i regulation and the exemption provides only temporary relief from the applicable l
regulation.
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i 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 priority and trusteeship provisions of Section 50.54(w) will not adversely J
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.
t This is a substantial amcunt of coverage that provides a significant financial cushion to licensees to decontaminate and clean up after an accident even without the pricritization and trusteeship provisions.
Second, nearly 75% of the required coverage is already prioritized under the decontamination liability and excess prcperty 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 i
accident giving rise to substantial insurance claims were to occur, NRC would be 4
able to take appropriate enforcement action to assure adequate cleanup to protect I
i public health and safety and the environment.
1 IV.
P Accordingly, the Commission has determined, pursuant to 10 CFR 50.12(a),
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that (1) a temporary exemption as described in Section III. is authorized by I
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1aw, will not present an undue risk to the public health and safety, and is consistent with the common defense and security and (2) in this case, special circumstances are present as described in Section !!!.
Therefore, the l
Comission hereby grants the following exemption:
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Connecticut Yankee Atomic Power Company 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, 1989. Upon completion of such rulemaking the licensee shall comply with the provisions of such rule.
Pursuant to 10 CFR 51.32, the Comission has determined that the granting of this exemption will not result in any significant environmental impact j
( 53 FR 38808 ).
This exemption is effective upon issuance.
i Dated at Rockville, Maryland this 3rd day of October
, 1988.
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FOR THE NUCLEAR REGULATORY COMMISSION I
1 N \\v h
even A. Yarga, Direc or Division of Reactor Pr ects I/II Office of Nuclear Reactor Regulation I
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