ML20204E855

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Amend 2 to License NPF-6
ML20204E855
Person / Time
Site: Arkansas Nuclear, 05000000
Issue date: 09/01/1978
From: Boyd R
NRC
To:
Shared Package
ML20204E814 List:
References
NUDOCS 8810210462
Download: ML20204E855 (10)


Text

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4 Attachment 2 4

l SYSTEM ENERGY RESOURCES, INC.

ARKANSAS POWER AND LIGHT COMPANY DOCKET NO. 50-368 ARKANSAS NUCLEAR ONE, UNIT 2 FACILITY OPERATING LICENSE Amendment No. 2  !

License No. NPF-6

1. The Nuclear Regulatory Commission (the Commission) having found that:

A. The issuance of this license, as amended, to the Arkansas Power and Light Compa9y ("AP&L") and System Energy Resources, Inc.

("SERI") (the licensees") complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Coemission's regulations set forth in 10 CFR Chapter I; P. Construction of Arkansas Nuclear One, Unit 2 (the facility) has been substantially completed in conformity with Construction Permit No. CPPR-89, and the application, as amended, the provisions of the Act and the regulations of the

(. Commission; C. The facility requires exemptions from certain requirements of (1)

Sections 10.55a(g)(2) and 50.55a(g)(4) of 10 CFR Part 50, (2)

Appendices G and H to 10 CFR Part 50 and (3) Appendix J to 10 CFR Part 50 for a period of three years. These exemptions are described in toe Office of Nuclear Reactor Regulation's safety evaluations supporting the granting of these exemptions which are enclosed in the letter transmitting this license amendment. These exemptions are authorized by law and will not endanger life or property or the common defense and security and are otherwise in the public interest. The exemptions are, therefore, hereby granted. With the grantir.g of these exemptions, as amended, the provisions of the Act, and the regulations of the Commission;

"After a transfer of AP&L nuclear personnel to SERI, SERI has succeeded APAL as the operator of Arkansas Nuclear One, Unit 2 (the facility).

Consequently, SERI is authorized to act for itself and for AP&L and has exclusive responsibility and control over the physical construction, operation and maintenance of the facility. Hereinafter, the ters licensees refers to both AP&L and SERI.

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I e D. There is reasonable assurance: (i) that the activities authorizw

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by this operating license can be conducted without encangering the health and safety of the public, and (ii) that suen activities will be conducted in compliance with the regulations c' the Commission; E. SERI is technically qualified and AP&L is financially qualified to l engage in the activities authorized by this operating license in accordance with the regulations of the Commission; F. AP&L h s satisfied the applicable provisions of 10 CFR Part 140, l "Financial Protection Rsquirements and Indemnity Agreements," of the Commission's regulations; G. The issuance of this amended operating license will not *.*

inimical to the common defense and security or to the ha' .. and safety of the public; H. After weighing the environmental, economic, technical and other benefits of the faci'ity against environmental and other costs and considering available alternatives, the issuance of Facility Operating License No. NPF-6, as amended, subject to the conditions for protection of the environment set forth herein, is in accordance with 10 CFR Part 51 (formerly Appendix D to 10 CFR Part 50) of the Commission's regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of source, byproduct and special nuclear material as authorized by this license will be in accordance with the Commission's regulations in 10 CFR Parts 30, 40 and 70, including 10 CFR Sections 30.33, 40.32, 70.23 and 70.31.

2. Facility Operating License No NPF-6, as amended, is hereby issued to AP&L and SERI to read as follows:

A. This amended license applies to Arkansas Nuclear One, Unit 2, a pressurized water reactor and associated equipment (the facility) owned by AP&L and operated by SERI. The facility is located in l Pope County, Arkansas, and is described in the Final Safety Analysis Report as supplemented and amended (Amendments 20 through 47) and the Environmental Report as supplemented and amended (Amendments 1 through 7).

B. Subject to the Conditions and requirements incorporated herein, the Commission hereby licenses: l (1) SERI, pursuant to Section 103 of the Act and 10 0 9 Part 50, l "Licensing of Production and Utilization Facilit t. " to possess, use, and operate the facility at the rx W isted location in Pope County, Arkansas in accordance +.mi;h the procedures and limitations set forth in this amended license; 2

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( (2) AP&L, pursuant to the Act and 10 CFR Part 50, to possess the facility at the designated location in Pope County, Arkansas, in accordance with the limitations set forth in this license; (3) SERI, pursuant to the Act and 10 CFR Part 70, to receive, I possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Final Safety Analysis Report, as supplemented and amended; (4) SERI, pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l receive, possess and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; (5) SERI pursuant to the Act and 10 CFR Parts 30, 40 and 70, to l receive, possess and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or associated with radioactive apparatus or components; and

( (6) SERI, pursuant to the Act and 10 CFR Parts 30 and 70, to l s possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of the facility.

C. This amended license shall be deemed to contain and is subject to conditions specified in the following Commission regulations in 10 CFR Chapter I; Part 20, Section 30.34 of Part 30, Section 40.41 of Part 40, Sections 50.54 and 50.59 of Part 50, and Section 70.32 of Part 70; and is subject to all applicable provisions of the Act and to the rules, regulations, and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

(1) Maximum Power Level SERI is authorized to operate the facility et steady state  !

reactor core power levels not in excess of 2815 megawatts thermal. Prior to attaining this power level SERI shall l comply with the conditions in Paragraph 2.C.(3).

(2) Technical Specifications The Technical Specifications contained in Appendices A & B, as revised through Amendment No. are hereby incorporated i in the license. SERI shall cperaIe the facility in 1 accordance with the Technical Specifications, except where

( otherwise stattd in specific license conditions.

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(3) Additional Conditions The matters specified in the following conditions shall be completed to the satisfaction of the Commission within the stated time periods following the issuance of the license or within the operational restrictions indicated. The removal of these conditions shall be made by an amendment to the '

license supported by a favorable evaluation by the Commission.

(a) "Fuel Performance" was deleted.

(b) Fire Protection SERI shall maintain in effect and fully implement all l provisions of the approved fire protection program.

The approved fire protection program consists of the following licensee's documents:

Date Document Final Safety Analysis Report Section 9.5.1 through Amendment 47 dated June 16, 1978 May 17, 1977 AP&L* Letter submitting a comparison of the l [

ANO-2 Fire Protection Program to Branch

( Technical Position 9.5-1.

August 30, AP&L Letter transmitting the Fire Hazards l ,

1977 Analysis and responses to staff questions.

September 21, AP&L Letter transmitting responses to staff l 1977 questions and positions.

October 26, AP&L Letter transmitting Fire Hazards l 1977 Analysis Information and responses to staff questions and positions.

February 3, AP&L Letter transmitting Fire Hazards l 1978 Analysis Information February 28, AP&L Letter transmitting Administrative l

. 1978 Controls information, j March 31, 1978 AP&L Letter transmitting responses to l staff questions, j April 12, 1978 AP&L Letter transmitting responses to l i staff questions and positions.

"The original licensee authorized to possess, use, and operate the facility was AP&L. Consequently, certain historical references to AP&L remain in the license  ;

conditions. '

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( April 17, If,78 April 26, 1978 AP&L Letter transmitting responses to staff questions and positions.

AP&L Letter transmitting responses to l

l staff questions and positions.

June 8, 1978 AP&L Letter transmitting affidavit for I previously docketed letters.

June 13, 1978 AP&L Letter transmitting Administrative l Ccntrols information.

June 15, 1978 AP&L Letter transmitting Administrative l Controls information..

7 June 29, 1978 AP&L Letter transmitting Administrative l Control information. l July 7, 1978 AP&L Letter transmitting affidavit for l previously docketed letters.

July 7, 1978 AP&L Letter transmitting Administrative l ,

Controls information.

July 13, 1978 AP&L Letter transmitting affidavit for l l previously docketed letters.

(c) Less Than Four Reactor Coolant Pump Operation SERI shall not operate the reactor in operational Modes l1 1 and 2 with fewer than four reactor coolant pumps in I operation, except as allowed by Special Test Exception l 3.10.3 of the facility Technical Specifications.

(d) "Instrument Trip Setpoints Drift Allowance" was deleted.

(e) Fire Protection l AP&L shall complete the following modifications by the l indicated da+es in accordance with the staff's findings

' as set forth in the fire protection evaluation report, NUREG-0223 "Fire Protection Safety Evaluation Report." t i

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Implementation Dates for Proposed Modifications Applicable .

Section of NUREG-0223 Date 3.1 Portable Radio Communication Equipment March 31, 1979 Separation of Power Cables in Manholes

  • 3.2 ,

3.3 Protection from Water Spray 3.4 Protection of Redundant Cables in the MCC Room (2096-M) December 30, 1978 3.5 Protection of Redundant Cables in the * "*

Hallway - Elevation 372 (2109-U) ,

3.6 Protection of Redundant Cables in the

  • Cable Spreading Room (2098-L) 3.7 Protection of Redundant Cables in the
  • Switchgear Room (2100-Z) 3.8 Protection of Redundant Cables in the Electrical Equipment Room (2091-8B) September 30, 1978 3.9 Protection of Redundant Cables in the Lower South Electrical Penetration Room (2111-T) September 30, 1978 3.10 Protection of Safe Shutdown Cables in the Upper South Piping Penetration Room (2084-00) September 30, 1978 3.11 Protection of Redundant Reactor * **

Protection System Cables (2136 1) ,

3.12 Fire Dampers September 30, 1978 3.13 Portable Extinguisher for the Control Room (2199-J) November 15, 1978 3.14 Smoke Detectors ,

3.15 Manual Hose Stations (2055-JJ, 2084-00, Containment, Elev. 317' of Auxiliary * **

Building ,

3.16 Portable Smoke Exhaust Equipment December 1, 1978 L

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3.17 Emergency Lighting December 1, 1978 3.18 Reactor Coolant Pump 011 Collection System 3.19 Control sf Fire Doors March 31, 1979 3.20 Administrative Control Changes December 1, 1976 (Numbers in parentheses refer to fire zone designations in the AP&L fire hazards analysis.)

  • Prior to startup following the first regularly scheduled refueling outage.
    • Technical Specifications covering these items should be proposed not later than 90 days prior to implementation.

- ') "Overpressure Mitigating System" was deleted.

.) Verification of Transient Analysis Code

%P&L shall complete tests to verify the use of the CESEC l de during the initial startup and power ascension

_ssting program and submit the results for Commission review and approval.

The CESEC verification test results shall include an

( analysis of the ur.:e.rtainties associated with the test instrumentation and a demonstration that the test instrumentation was adequate for the intended purpose.

(h) "Main Feedwater System Modification" was deleted.

(i) Containment Radiation Moni g AP&L shall, prior to July 31, 1980 submit for Commission l review and approval documentation which establishes the adequacy of the qualifications of the containment radiation monitors located inside the containment and shall complete the installation and testing of these instruments to demonstrate that they meet the operability requirements of Technical Specification No.

3.3.3.6.

(j) "Environmental Qualifications of Safety Related Instrumentation" was deleted.

(k) "Core Protection Calculator System (CPCS)" was deleted.

(1) "CEA Guide Tube Surveillance Program" was deleted.

(m) "Redundant Valve Position Indication" was deleted.

s (n) "Fire Barrier Testing" was deleted.

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(o) "Offsite Power System" was deleted.

(p) Secondary Water Chemistry Monitorino SERI shall implement a secondary water chemistry l monitoring program using the overall plant administrative procedure "Steam Generator Water Chemistry Monitoring Unit II", to minimize steam generator tube degradation. The program shall be defined in specific plant procedures and shall include:

1. Identification of sampling schedule for the critical parameters and control points for these parameters;
2. Identification of the procedures used to measure the values of the critical parameters;
3. Identification of process sampling points;
4. Procedure for the recording and managemeht of data;
5. Procedures defining corrective actions for off control point chemistry conditions; and
6. A procedure identifying the authority responsible for the interpretation of the data, and the

(, sequence and timing of administrative events requiru to initiate corrective action.

(4) SERI shall implement a program to reduce leakage from systems l outside containment that would or could contain highly radioactive fluids during a serious transient or accident to as low as practical levels. This program shall include the

, following:

1. Provisions establishing preventive maintenance and periodic visual inspection requirements, and
2. Integrated leak test requirements for each system at a frequency not to exceed refueling cycle intervals.

(5) SERI shal, implement a program which will er.sure the  !

capability to accurately determine the airborne iodine concentration in vital areas under accident conditions. This program shall include the following:

1. Training of personnel,
2. Procedures for monitoring, and
3. Provisions for maintenance of sampling and analysis equipment.

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l D. Physical Pro _tection SERI shall fully implement and maintain in effect provisions of l the following Commission approved documents, including amendments and changes made pursuant to the authority of 10 CFR $0.54(p). ,

These approved tiocuments consist of information withheld from '

public disclosure pursuant to 10 CFR 2.790(d):

4 (1) "Arkansas Nuclear One Industrial Security Plan" dated January 11, 1979, as revised by submittals dated January 2, 1981 (Enclosure 2), and April 30, 1981.

(2) "Arkansas Nuclear Station Safeguards Contingency Plan,"

Revision 1 dated February 26, 1940, revised by Revision 2 i page changes dated April 30, 1980, and submitted pursuant to '

10 CFR 73.40. The Contingency Plan shall be fully implemented in accordance with 10 CFR 73.40(b). i l

1 (3) "Arkansas Nuclear One Security Force Training and i Qualification Plan" as submitted by letter dated September 9, l 4 1980, as revised by pages dated February 5, 1981, and April i

, 27, 1981. This Plan shall be followed in accordance with 10  ;

CFR 73.55(b)(4), 60 days after approval by the Commission. (

4 All security personnel, as required in the above plans, shall L be qualified within two years of this approval. SERI may l  :

make changes to this plan without prior Commission approval  ;

( if the changes do not decrease the safeguards effettiveness of the plan. SERI shall maintain records of and submit reports concerning such changes in the same manner as l

i required for changes made to the Security Plan and Safeguards  !

Contingency Plan pursuant to 10 CFR 50.54(p).

E. This license is subject to the following additional condition for tha protection of the environment:  :

Before engaging in additional construction or operational ,

activities which may result in an environmental impact that was l not evaluated by the Commission, SERI will prepare and record an l environmental evaluation for such activity. When the evaluation i indicates that such activity may result in a significant adverse ,

environmental impact that was not evaluated, or that is l significantly rester than that evaluated, in the Final Environmental !tatement (NUREG-0254) or any addenda thereto, SERI l l  ;

shall provide a written evaluation of such activities and obtain '

prior approval from the Director, Office of Nuclear Reactor Regulation. [

F. This license is effective as of the date of issuance and shall  !

expire at midnight, December 6, 2012.  ;

Roger S. Boyd, Director Date of Issuance: September 1, 1978 9

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( 1 l OUISIAN A P O W E A & t, i G H T/ 3i7 8ARONNE 5TREET . P. O. Box 60340 NEW ORLE ANS, LOUl51 AN A 70160 (504) 595 2781 ybN U S Ishy p , , ,, .

J G Di M all isares we terses o arv4f as O*f ea ret W3P88-1243 A4.05 QA U.S. Nuclear Regulatory Coe=ission ATTN: Docueent Control Desk Washington, D.C. 20555

Subject:

Waterford 3 SES Docket No. 50-382 License No. NPT-38 (Change Request No. NPF-38-83)

SERI License Arendment Application for Waterford 3 Attnt Mr. Dennis M. Crutchfield. Director Division of Reactor Projects III. IV Y and Special Projects Centlement Louisiana Power & Light (LP&L), as the licensee for Waterford 3 hereby subeits the enclosed application to amend facility operating license No. NPT-38. This application requests NRC approval for System Energy Resources. Inc. (SERI) to assues responsibility for operation of Waterford 3. In order to effect this change, the existing LP&L nuclear organization vill be transferred. virtually intact, to SERI. Thus, essentially the same organizatien and staff currently responsible for operating Waterford 3 vill continita those responsibilities as a part of SERI.

The application to amend the LP&L operating license contains the information to effect the requested transfer of licensed activities.and to amend the operating license. In addition, the application contains the significant hazards consideration evalvation required by 10CTR50.92 and 50.91. A more detailed description of the application is set forth below.

As the NRC is aware, this license amendment application is associated with the consolidation of nuclear operations of LP&L. Arkansas Power & Light Company (AP&L), and SERI. To ensure that complete and accurate information is submitted to the NRC and to provide what can be called the "total picture" of the associated licensing activities germane to LP&L's application, this letter provides certain factual inforestion and describes steilar licensing actions planned by AP&L. / similar license amend = eat application is being forwarded under separate cover by AP&L addressing SERI's assumption of operating responsibilities for Arkansas Nuclear One.

Units 1 and * (ANO 1 and 2). The NRC should rely on AP&L's license

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Page 2 W3P88-1243 amendment application for information specifically pertaining to AP6L and ANO 1 and 2. Similarly, the NRC should rely on any submittals forwarded by SERI for information on SERI operations at the Grand Culf Nuclear Station (CCNS).

A. INTRODUCTI0E By way of background, LP&L, SERI, and AP&L are wholly-owned subsidiaries of Middle South Utilities. Inc. (HSU). LP&L is presently licensed to own and operate Waterford 3. AP&L is licensed to own and operate ANO 1 and

2. SERI is presently licensed to own and operate CCNS, Unit 1, and to own and construct GCNS, Unit 2.

For reasons discussed in the application, MSU has decided that SERI will become its system wide nuclear operating company. Under the HSU plan, SERI will assumt all responsibilities for the management and operation --

but not ownership -- of Waterford 3. Similarly, as discussed in AP&L's amend-ment application, SERI will assume operating responsibilities of ANO 1 and

2. The enclosed amendment application specifically addresses SERI's assump-tion of responsibilities for Waterford 3.
5. OPERATING RESPONSIBILITIES

( As described in greater detail in the attached application, the transfer of operating responsibilities will be accomplished for Waterford 3 by an operating agreement between the owner (LP&L) and the new operator (SERI).

This agreement will give SERI exclusive authority to make operational safety decisions and to conduct licensing activities with the NRC. Under the agree-ment. SERI's costs of operating Waterford 3 will be paid by LP&L, as the owner of the unit, and LP&L will be entitled to all power generated at Water-ford 3. Although the operating agreement has not been completed as of this filing, we will make it available to the NRC as soon as practicable and, in any event, prior to issuance of the proposed amendment.

C. OPERATIONAL /0RCANIZATIONAL CRANCES LP&L, AP&L, and SERI have taken a system-wide approach, with strong management oversight, to direct the task of consolidating management of the HSU plants. A special consolidation organisaticn, drawing on resources and expertise from all three companies, has been specifically set up to ensure that licensing and other relevant substantive issues are addressed. One clear objective of consolidation activities has been to minimise disruption due to the changes, and to assure that there is no degradation to organiza-tional performance or public safety.

The above philosophy has been particularly manifest in the planning of the new SERI integrated operating organization. As discussed in ',he enclosure, the present application does not contemplate any major

[ organizational changes in LP&L's nuclear organization, other than the L transfer of personnel to SERI. The present nuclear organization will t

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  • Page 3 W3P88-1243 remain essencially in place, with a change only ;o the lines of authority such that the Senior Viet President - Nuclear Operations for Waterford 3 vill report directly to the President and Chief Executive Officer of SERI. The Waterford 3 Quality Assurance Department will also have direct access to the President and Chief Executive Of ficer of SERI on matters related to quality.

It is anticipated that SERI will in the future, af ter issuance of this amendment, be considering organisation changes to achieve further integration and efficiencies. However, those changes have not yet buen identified and are not part of. or necessary for, the present application. Any such future changes will be governed by an internal policy that will provide appropriate management controls and assure the continued integration of critical support functions. In addition. SERI will inform the NRC in advance of planned organization changes which involve major restructuring of line or nuclear support functions at its nuclear f acilities and that are important to plant safety. This commitment shall remain in ef fect until the NRC and SERI mutually agree that it is no longer required.

A guiding principle of the consolidation task force has been to recognize that MSU currently has three strong, successful organizations operating its plants. The reorganization plan therefore specifically acknowledges and maintains the special needs of each existing nuclear organization. Individual t plant priorities and ongoing plant improvement initiatives will not be

, adversely impacted by the consolidation.

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Additionally, and in response to an NRC staff concern regarding future operational activities, it is recognized that the operating license for Waterford 3 would not permit the transfer of spent fuel between Waterford 3 and any other facility operated by SERI without specific regulatory approval.

j D. NOTIFICATIONS AND APPROVALS I

l While the assumption of responsibilities for Waterford 3 by SERI requires the consent of certain creditors and the review and/or approval of federal and state agencies other than the NRC. it is anticipated that these consents, l reviews or app: ovals will be completed prior to the end of this year. The NRC will be kept informed of the progress of these parallel ef forts and v111 of course, be informed in writing should it appear that any of these actions will not be completed in a reasonable time, t

The consolidatLon task force has also been committed .o keeping other relevant state and local of ficials, and the public, informed with respect to the KSU nuclear plan. The NRC will be kept informed of these informational activities.

E. SCHEDULE Finally, with respect to scheduling. it is our intent to submit this I

  • application concurrently with the AP&L amendment application for ANO 1 k, and 2. In order that administrative matters associated with the change l

l 1

Page 4 W3P88-1243 (including the transfers of personnel from LP&L to SERI) can be conpleted la a timely and orderly fashion, it is requested that the Waterford 3 atsendment be issued simultaneously with that for ANO 1 and 2. We are seeking, however, to implement the proposed changes as soon as practicable, consistent with obtaining other necessary regulatory approvals. Therefore, we request your expeditious review and approval.

This application and the proposed amendment has been reviewed .ind approved by the Waterford 3 Plant Operations Review Committee and Safety Review Coreittee. As discussed in the application. LP&L has concluded that the proposed amendment to the Waterford 3 operating license does not involve an unreviewed safety question nor a significant hasards consideration.

Yours very truly, hO -

JG . ease

'fiorVicePresident-e clear Operations

( JGD/MJM/ple

Enclosures:

NPT-38-83 Tiling fee - $150 i

ect R.D. Martin, J.A. Calvo. D.L. Vigginton, NRC Resident Inspectors Office. E.L. Blake. W.H. Stevenson. Administrator Nuclear Energy Division (State of Louisiana). American Nuclear Insurers I

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1 W3P88-1243 beer R.P. Barkhurst. R.T. Burski T.T. Cerrets. T.J. Drummond.

5.A. Allesen N.S. Carns. D.T. Packer. P.V. Prasankumar.

M.J. Meisner. C.E. Wu11er. C.E. Wilson. R.W. Prados. L.W. Laughlin.

C.E. DeDeaux. J.B. Houghtaling. R.T. Lally. Jr., W.A. Cross.

R.P. O'Neill. Records Center. Administrative Support.

Licensing Library. Site Licensing Support File i

L

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the matter of )

)

Louisiana Power & Light Company ) Docket No. 50-382 k'aterford 3 Steam Electric Station )

ATTIDAVIT J.C. Dewease, being duly sworn, hereby deposes and says that he is Senior Vice President-Nuclear Operations of Louisiana Power & Light Companyl that he is duly authorized to sign and file with the Nuclear Regulatory Cornission the attached Operating License Change Request NPT-38-838 that he is familiar with the content thereof and that the matters set forth therein are true and correct to the best of his knowledge, information and belief.

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.y; DW ease d ior Vice President-Nuclear Operations

/

STATE OF LOUISIANA)

) as PARISH OF ORLEANS )

Subscribed and sworn to befor sej,a Notary Publi n and for the Parish and State above named this K day of . _ ao .

1988. /

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Notary Tublic p i

My Concission expires

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NPT-38-83

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( UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION l

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In the Matter of )

)

LOUISIANA POWER & LIGHT COMPANY ) i

) Docket No. 50-382 i

) '

(Waterford 3 Steam Electric ) '

Station, Unit No. 3) )

APPLICATION TO AKEND FACILITY t OPERATING LICENSE NO. NPF-38 i

Louisiana Power & Light Company ("LP&L") (the "Licensee") is l the holder of Facility operating License No. NPT-38 for Waterford Steam Electric Station Unit 3 (Waterford 3). The operating l

( license presently authorizes LP&L to possess, use and operate  !

Waterford 3 in accordance with the terms and conditions of the  ;

I' license.

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t LP&L is a wholly-owned subsidiary of Middle South Utilities, l Inc. ("MSU"). MSU also owns the common stock of Arkansas Power  !

& Light Company ("AP&L"), which is licensed by the Nuclear f

Regulatory Commission (NRC) to possess, use and operate Arkansas i Nuclear One, Units 1 and 2 ("ANO-1" and "ANO-2"), and System  :

Energy Resources, Inc. ("SERI"), which is licensed to possess, use  !

and operate Grand Gulf Nuclear Station ("Grand Gulf"), Unit 1 and te construct Grand Gulf, Unit 2. I l

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MSU now plans for SERI to become its system-wide nuclear l operating company. As such, SERI, in addition to operating Grand culf, Unit 1, would assume operating responsibility for -- but not ownership of -- Waterford 3, ANO-1, and ANO-2. This assumption of operating responsibility will be accomplished by operating /

agreements between LP&L and SERI, and between AP&L and SERI, each designating SERI as its agent and authorizing SERI to operate its

, plant or plants. The assumption of operating responsibility by l SERI for Waterford 3, ANO-1, and ANO-2 will not impact existing j

plant ownership or entitlements to capacity and energy.

l Upon receipt of necessary regulatory approvals and transfer j to SERI of LP&L Nucluar Operations personnel, SERI will succeed This amendment application

{ LP&L as operator of Waterford 3.

i requests that the NRC amend Operating License No. NPT-38 to authorize and reflect in the license the change from LP&L to SERI as the licensee authorized to possess, use and , operate Waterford 3, 1/

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I 1/ The proposed changes to the Waterford 3 @erating License i to reflect the establishment of SERI as de licensee responsible for the operation of Waterford 3 are included in Attachment 1. Other than submittals currently pending NRC approval, this amendment application involves no additional changes *.o the Technical specifications.

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3-i specifically, pursuant to 10 C.F.R. I 50.90, the Licensee hereby requests that the NRC amend Operating License No. NPF-38 to change the name of the licensee for Waterford 3 , such that:

(1) SERI, pursuant to section 103 of the Atomic Energy Act of 1954, as amended, ("the Act")

and 10 C.F.R. Part 50 "Domestic Licensing of Production and Utilization Facilities," is licensed to possess, use and operate Waterford 3 at the designated location in J

St. Charles Parish, Louisiana, in accordance l with the procedures and limitations set forth in the License; i

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(2) LP&L, pursuknt to the Act and 10 C.F.R. Part 50, is licensed to possess Waterford 3 at the

) designated locatior dn St. Charles Parish, Louisiana, in accordance with the procedures j and limitations set forth in the Licenses 1

(3) SERI, pursuant to the Act and 10 C.F.R. Part 70, j is licensed to receive, possess and use at any time special nuclear material as reactor fuel, in accordance with the limitations for storage l

! and amounts required for reactor operation, as i described in the Final Safety Analysis Report,

! ( as supplemented and amended; I

(4) SERI, pursuant to the Act and 10 C.T.R. Parts '

30, 40 and 70, is licensed to receive, possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation acnitoring equipment calibration, and as fission detectors in amounts as required *

(5) SERI, pursuant to the Act and 10 C.F.R. Parts 30, 40 and 70, is licensed to receive, possess and use in amounts as required any

( byproduct, source or special nuclear material without restriction to chemical or physical form, for sample analysis or instrument calibration or associated with radioactive apparatus or components; and (6) SERI, pursuant to the Act and 10 C.F.R. Parts 30, 40 and 70, is licensed to possess, but not separate, such byproduct and special nuclear materials as may be produced by the operation of Waterford 3.

(

5-Other conforming license changes are noted in the attachments to this Application y Set forth below is the information in support of the Application to Amend Facility Operating License No.

NPF-38.

I, '

i U Confonning changes, if necessary, in insurance and indemnity

.i agreements will be made in due course by separate correspondence.

[

6 I. GENERAL INFORMATION CONCERNING LICENSE AMENDMENT C

A. Proposed Additional Licensee: System Energy Resources, Inc.

B. Address: Post Office Box 23054 Jackson, Mississippi 39215 C. Description of Business or occupation SERI is a wholly-owned subsidiary of Middle South Utilities,

( Ir :. SERI, formerly Middle South Energy, Inc. ("MSE"), was formed in 1974 to construct, finance and own base-load generating units for the operating subsidiaries of MSU. On July 22, 1986, the Boards of Directors of MSU and MSE took action to change the name of MSE to SERI and to authorize transferring to SERI all responsibility for the operation of Grand Gulf Unit 1 and construction of Grand Gulf Unit 2. This was accomplished on December 20, 1986, upon receipt of the necessary regulatory approvals.

To date, SERI's business has comprised owning and financing its ninety percent ownership interest in the Grand Gulf Nuclear Station, and operating the plant. Prior to issuance of this

(_

7-license amendment, SERI will take necessary corporate action to authorize it to operate Waterford 3 and ANO 1 and ANO 2.

After approval of this requested amendment and a similar amendment to the Operating Licenses for ANO 1 and ANO 2, SERI will be responsible for the operation and maintenance of all nuclear plants in the MSU System, including Waterford 3. Upon receipt of necessary regulatory approvals, SERI, as distinct from LP&L as the owner of the facility, will have responsibility for and control over the physical construction, operation, and maintenance of the facility.

D. Organization and Management of Operating Corporation

(

SERI is a corporation organized and existing under che laws of the State of Arkansas. Its principal office is located in Jackson, Mississippi. The corporation is neither owned, controlled nor dominated by an alien, a foreign corporation, nor a foreign government, k

All dirtsctors and principal officers of SERI are citizens of the United States. Their names and addresses are as follows: 1/

Directors Mr. E. A. Lupberger Chairman of the Board System Energy Resources, Inc.

225 Baronne Street New Orleans, Louisiana 70112 Mr. William Cavanaugh, !!!

President and Chief Executive Officer System Energy Resources, Inc.

Post Office Box 23054 Jackson, MS 39215 Mr. D. C. Lutken

Chairman of the Board and Chief Executive Officer Mississippi Power & Light Company P.O. Box 1640 Jackson, MS 39215-1640 Mr. J. M. Cain President and Chief Executive officer Louisiana Power & Light Company /

New Orleans Public Services, Inc.

Post Office Box 60340 New Orleans, Louisiana 70160 Mr. J. L. Maulden President and Chief Executive Officer Arkansas Power & Light Company Post Office Box 551 Little Rock, Arkansas 72203 Dr. Joseph M. Hendrie 4

Nuclear Engineering Consultant 50 Bellport Lane Bellport, New York 11713:

Senior Scientist, Research and Development Brookhaven National Laboratory k-3/ Additional directors and officers may be named at a later date.

9-Officers Mr. E. A. Lupberger ,

Chairman of the Board '

system Energy Resources, Inc.

225 Baronne street New Orleans, Louisiana 70112 Mr. William Cavanaugh III l President and Chief Executive Officer System Energy Resources, Inc.

Post Office Box 23054 Jackson, Mississippi 39215 Mr. Olenn E. Harder Vice President - Accounting System Energy Resources, Inc.

Post Office Box 23054 Jackson, Mississippi 39215 Mr. Richard J. Landy Vice. President - Human Resources <

and Administration  !

System Energy Resources, Inc.

Post Office Box 23054 Jackson, Mississippi 39215 ,

Mr. Oliver D. Kingsley, Jr. i Vice President - Nuclear Operations

, System Energy Resourcos, Inc.

Post Office Box 23054 '

Jackson, Mississippi 39215 Mr. Ted H. Cloninger >

Vice President - Nuclear Engineering  ;

and support System Energy Resources, Inc. ,

Post Office Box 23054 Jackson, Mississippi 39215  ;

J Mr. Dan E. stapp l Secretary system Energy Resources, Inc. i Post Office Box 61005 l New Orleans, Louisiana 70161 !

4 t

I k.

l l

Upon issuance of the operating License amendment, certain '

, officers of LP&L will become officers of SERI. The names of these officers will be announced following approval by the SERI Board of Directors.

i E. Technical Qualifications The technical qualifications of SERI to carry out its

]

responsibilities under the operating License for Waterford 3, as  !

amended, will meet or exceed the present technical qualifications ,

of LP&L. LP&L will continue to act as the operator of i

Waterford 3, pending the amendment of the operating License. When  ;

l the amendment becomes effective, SERI will assume responsibility  !

( for, and control over, the physical construction, operation, and l

1

. j

, maintenance of the facility. The present Waterford 3 Nuclear l l Operations organization will be transferred essentially intact to f l  !

! SERI. The technical qualifications of the proposed Waterford 3 t

\

organization therefore will be at least equivalent to those of  :

the existing organization.

l 2

i l The central objectives in planning the proposed consolidation I l

of the LP&L and SERI organizations have been to minimize [

! disruption to the operation of the plants and to respect the l i integrity of the existing, successful organizations, therefore, l l in the proposed consolidated SERI organizatien, each nuclear l

l organization of the operating plants will be preserved with the

( only change that the senior nuclear executive of LP&L and AP&L l

r

i

! 11 a,

i will report directly to the President and Chief Executive Officer

{

i of SERI . This organization is illustrated in Attachment 2. Thus, ,

r for Waterford 3, J. G. Dewease, Senior Vice President - Nuclear u

operations, will report directly to W. Cavanaugh III, President and Chief Executive Officer of SERI. The Nuclear Quklity Assurance Department for the plant will also have direct access to the President and Chief Executive Officer of SERI on matters related to quality, i l This approach to the consolidation accommodates the current l

, plant-specific structure of the LP&L and SERI organizations. This  ;

l allows the transfer of LP&L nuclear personnel to SERI with ,

) virtually no organizational changes or disruption. It also allows l

/ the management for each facility to retain sufficient independence to address plant-specific needs and to maintain existing j pr2orities ano ongoing plant improvement projects. Importantly,  !

) f and as discussed below, there will be in the near tern no  !

i organizational or physical location changes to the existing, i j dedicated, organization, which would include the engineering,  !

quality assurance, and licensing organizations supporting f j waterford 3.  !

I i

1

! l l

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f

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~

The significant elements and advantages to the proposed SERI

~

organization can be summarized as follows:

(1) The structure provides clear lines of authority and responsibility while ensuring that essential nuclear functions are dedicated to each project and repsrt to a single responsible project executive.

(2) The effectiveness of project quality as..:urance will not be degraded.

(3) The project structure will continue to provide the project executive the flexibility necessary for managing

( his resources to achieve optimal results. Ongoing plant improvement plans will not be impacted.

(4) The project structure provides the flexibility necessary L

j to adapt to different procedures and methids used at each plant. This is particularly important initially, since most project nuclear activities will be l transferred essentially "as is" to SERI.

(5) The effectiveness of a dedicated nuclear support organization is enhanced by identity with and sharing of l

( the SERI goals and objectives.

l

(

The consolidation of the SERI, LP&L, and AP&L nuclear orge.nizations will be a long-term, evolutionary process. For the time being, and for purposes of the present application, only certain non-nuclear support functions, such as accounting and human resources, may be combined, if it appears beneficial and appropriate to do so. The licensees will continue to study possible organizational and programmatic changes to enhance objectives and to realize further benefits from the establishment of SERI as the nuclear operating company for the MSU System. Such changes will only be implemented after careful consideration.

SERI will inform NRC in advance of planned organizational changes that involve majoi restrue:uring of line or nuclear support functions at its nuclear facilities and that are important to

( plant safety. This commitment shall remain in effect until the NRC and SERI mutually agree that it is no longer required.

F. Statement of Purposes for the License Amendment The assumption vf operational responsibility for Waterford 3, by SERI (along with responsibility for ANO-1, ANO-2, and Grand Gulf) will provide benefits inherent to an integrated nuclear operating company. Some of the expected benefits are as follows:

(1) SERI, as an operating company for multiple reactors, will have a repository of system nuclear operating expertise and experience. Presently, there is a wealth km of nuclear operations talent spread throughout the MSU

u ;

14 _

systera. Consolidation of this talent into one company should have a synergistic effect. The change should enhance the already high level of public safety and cost-effective operations.

(2) consolidation of talent not only will result in a merger of expertise and experience for system-wide nuclear operations support, but also will permit the specialization of expertise in certain areas that might not otherwise be developed if each of the companies continued to operate their separate facilities.

(3) SERI will be better able to provide a consistent vision for the philosophy of opel, ;0n of the system nuclear units. A single company responsible for all nuclear operations in the MsU system will allow development of a consistent philosophy which will be specifically designed for nuclear plant operations. This focused philosophy can be used to maintain excellence in all aspects of uuclear operation.

(4) As a result of the consolidation, there will be more effective communication and use of system nuclear operating experience. For example, the system-wide nuclear operating company will allow "lessons learned" to be shared promptly, efficiently, and consistently

( among the units.

l

l (5) Certain non-nuclear support functions will become specialized and focused on the aquirements of all of the System's nuclear unit ~ and will thereby be more effective.

(6) Bringing all of the MSU nuclear units under the management of one company will provide a broader base and more competitive environment for upper management candidates who are specialized in nuclear power generation. Further, SERI, in its new role, should provide an environment in which all employees continue to be motivated toward high performance. SERI, eith its expanded responsibilitras, will also provide greater opgertunity for career progression and thus greater opportunity to retain valued employees.

(7) More specifically, as a result of this consolidation, l

salary structures, career path policies and procedures will be internally consistent. Since all of SERI's employees will be "nuclear employees", there will no longer exist any distinction in these areas between l

l employees who support nuclear operations and those who l

l do not. This r.11 permit nuclear managers to focus l

l entirely upon the special needs, qualifications, and

. requirements of nuclear employees. Human resource and l

compensation policies tailored to nuclear operations l

l ( will allow SERI to be competitive in the market for l

skilled nuclear professionals without directly influencing, or being bound by, personnel policies and procedures governing non-nuclear related personnel. The ability to attract superior nuclear talent and retain quality individuals once recruited will have a direct and positive impact on the quality of nuclear operations.

G. Financial Considerations As is discussed below, SERI is an "electric utility" as that term is defined by 10 C.F.R. I 50.2. Therefore, under 10 C.F.R. $

50.33(f), a full financial qualifications review of this I application to amend the license is not necessary. By way of demonstrating that SERI is an "electric utility" and apprising the NRC r' the relationships that will exist between SERI and LP&L (the facility owner) the following brief discussion is provided.

The following interrelations will be established by an operatp g agre.em_ent between LP&L and SERI:

1. SERI will not have any ownership interest in the Waterford 3 plant, or facilities; however, it will have ,

overall responsibility for plant operations. SERI will operate Waterford 3 in accordance with the operating License and shall have exclusive responsibility for

( making safety decisions.

2. LP&L will retain certain controls over ultimate 1

C spending limits, such as the authority to direct that Waterford 3 be shut down in an orderly fashion by SERI (and in accordance with SERI's safety judgment). This retained authority will limit SERI's spending authority, but will not encumber SERI's ability to make operational safety decisions and will have no impact on safe operation of Waterford 3.

3. All costs for the operation, construction, maintenance, repair, decontamination and decommissioning of Waterford 3 incurred or accrued will be the responsibility of LP&L when incurred or accrued.

(

Section 50.2 of 10 C.F.R. defines an "electric utility" as:

. . . any entity that generates or distributes electricity and which recovers the cost of this electricity, either directly or indirectly, through rates established by the entity itself or by a separate regulatory authority. Investor-owned utilities, including generation and distribution subsidiaries, public utility districts, municipalities, rural electric cooperatives, and State and Federal agencies, including associations of any of the foregoing, are included 4

within the meaning of ' electric utility.'

k.%  !

i 1

--- . . - - - _ - . - _ ~ - - _ - . . - . _ _ - _ - - _ - , . - .

. l

\

SERI is a generating subsidiary of MSU. It operates Grand Gulf, Unit 1, and sells power at wholesale to operating companies in the Middle South System pursuant to rates established by the Federal Energy Regulatory Commission. Upon receiving necessary regulatory approvals, it will also operate, for the benefit cf their owners, Waterford 3 and ANO 1 and ANO 2 for the generation of electricity. SERI's costs of operation for Waterford 3 will be recovered from LP&L who in turn recovers such costs through retail rates established by state and city regulatory authorities and through wholesale rates established by the Federal Energy Regulatory Commission. Hence, SERI is an "electric utility" as defined in 10 C.F.R. I 50.2.

1

( LP&L is subject to the rate jurisdiction of the Louisiana Public Service Commission, the City Council of New Orleans and the Federal Energy Regulatory Commission. Therefore, LP&L also remains an "electric utility" and is committed to provide all funds necessary to continue safe operation of Waterford 3, to shut l down Waterford 3 permanently, if necessary, and to maintain

, Waterford 3 in a safe condition, all in conformance with NRC l

regulations. LP&L and its sources of funds will remain the same as under the present license. The operating agreement terms i

regarding costs, discussed above, give SERI the same financial qualifications as the present licensee, LP&L.

1 I s-

- - - - , _ , . - . . - . . . _ _ . _ _ _ _ . _ , , , - __ . , . - - - - _ . - - - ~ - .

H. Antitrust Considerations MSU's plan for SERI to operate and manage Waterford 3 will not impact the existing ownership of Waterford 3 or existing entitlements to power. Further, the proposed license amendment to designate SERI as the entity authorized to possess, use and operate Waterford 3 will not alter the existing antitrust license conditions applicable to LP&L. Those conditions will remain applicable to LP&L. Therefore, this proposed license amendrent does not require antitrust review pursuant to Section 105 of the Atomic Energy Act and 10 C.F.R. I 2.101(e).

I. Restricted Data

( This Application d.oes not contain any Restricted Data or other defense inforzation, and it is not expected that any such information will become involved in the licensed activities.

However, in the event that such information does become involved, SERI agrees tha: it will appropriately safeguard such information and it will not. permit any individual to uc o ?ccess to Restricted Data until the office of Personnel Management shall nave made an investigation and report to the NRC on the character, associations and loyalty of such individual, and the NRC shall have determined that permitting such person to have access to Restricted Data will not endanger the common defense and security.

L

II. SPECIFIC INFORMATION REGARDING RELATED ISSUES A. Emergency Planning Upon approval of the license amer.dment to authorize operation of Waterford 3 by SERI, SERI will assume authority and responsibility for functions necessary to fulfill the emergency planning requirements specified in 10 C.F.R. I 50.47(b) and Part 50, Appendix E. No changes will be made to the present LP&L aspects of the existing Waterford 3 emergency plan. In addition, there will be no changes to the existing Emergency Planning Organization. SERI will add organizational components to reflect its assumption of responsibility for emergency planning.

( Transition plans will be established to ensure that support described in the existing emergency plan will be maintained throughout the transition and as needed following the transition.

Appropriate action will be taken as necessary with respect to existing agreements for support from organizations and agencies not affiliated with the licensees to reflect SERI's agency relationship with the owner and SERI's responsibility for management and operation of Waterford 3. This will be l

accomplished as necessary by LP&L prior to the transfer of l responsibility.

l

(

l (.

t l

Following the transfer of operating responsibility to SERI, emergency planning support will be provided by LP&L as needed. In essence, to the extent that personnel, resources, and facilities are not being transferred to SERI, LP&L will continue to fulfill selected emergency planning functions. These functions have been thoroughly reviewed and the required support will be assured by an agreement between SERI and LP&L. Long-term utilitation of LP&L resources in these areas will be based on cost-effectiveness and existing relationships with offsita organizations and agencies.

In sum, the proposed license amendment will not impact compliance with the emergency planning requirements. Because the effectiveness of the emergency plan will not be decreased,

/ specific emergency plan and procedure changes will be submitted to the NRC within 30 days after the changes are made, pursuant to 10 C.F.R. l 50.54(q) and Appendix E,Section V.

B. General Design Criterion 17 The amendment to authorize assumption of operating responsibility by SERI involves no changes in the ownership or design of the offsite power system for Waterford 3, or in its operation, naintenance or testing. Upon approval of the Emendment, LP&L will continue to fulfill its current responsibilities with respect to compliance with General Design Criterion ("GDC") 17.

N

l l

l l

GDC 17 specifically requires that there be an assured source of offsite power to the plant. Pursuart to this requirement, SERI and LP&L will maintain and implement procedures and agreements specifying: (1) the arrangements for provision of a continued source of offsite power and (2) the arrangements for controlling operation, maintenance, repair, and other activities with respect to the Switching Station, the transmission lines and the Switchyard, such that adequate independent sources of offsite power will continue to be provided.

The term "Switching Station" applies to the station located immediately adjacent to Waterford 3. The purpose of this station is to connect the plant to the Waterford Switchyard by means of

( two 230 kv lines.

The term "Switchyard" applies to the 230 kv switchyard closest to Waterford 3 consisting of two buses and bays connected in the typical breaker and a half scheme.

In essence, the written procedures and agreements will provide for the future interface between SERI and LP&L. First, LP&L has committed to providing offsite power to Waterford 3.

Second, the procedures and agreements will provide for the continuation of current arrangements for the operation and maintenance of the Switching Station, the Switchyard and associated transmission facilities. The procedures and agreements

(

S will also specify that LP&L will abtain approval from SERI prior to implementing any changes to tne equipment in the Switching station, which includes the unit oil circuit breakers, switching disconnects, transmission lines and protective relaying which are

.directly adjacent to the Waterford 3 protected area. In addition, procedures will also specify that LP&L will obtain concurrence from SERI prior to implementing any changes to the 230 kv switchyard equipment dedicated to Waterford 3.

C. Exclusion Area Upon approval of the amendment providing for assumption of operating responsibility by SERI, SERI will have authority to

( determine all activities within the Waterford 3 exclusion area, to the extent required by 10 C.F.R. Part 100.

l As stated in Section 2.1.2 of the Waterford 3 Final Safety Analysis Report (FSAR), LP&L owns all surface rights within the l

exclusion area boundary of the plant. Under the operating agreement between SERI and LP&L, LP&L will agree to provide SERI with unrestricted access to the property constituting the Waterford 3 site, including the facilities, equipment, Switching S2ation and personal property located on the site. Except as

.nodified below with respect to Waterford 1 and 2, SEk! shall have authority to exercise complete control over the exclusion area as designated in the PSAR for the plant, and to determine all

(, activities within that area (including all areas of the 1

m

Waterford 3 plant and the Switching Station). This authority will allow SERI to control ingress and egress and to order an evacuation if necessary. To the extent practicable, SERI will, of course, exercise this control in such a fashion that LP&L's access to the Switching Station, transmission facilities and to Waterford 1 & 2 for proper operation and maintenance of the electric systems on the Waterford site will not be unduly restricted.

Those activities associated with the operation and maintenance of the LP&L Waterford 1 & 2 fossil generating plants, which are located in the exclusion area, are unrelated to the operation of Waterford 3 and therefore will remain under the control of LP&L. Written procedures and agreements will provide

{

for the interface between SERI and LP&L to address the operation of these facilities during emergency situations.

With respect to the activities unrelated to plant operation that will occur in the exclusion area identified in Section 2.1.2 of the FSAR, there will be no change. SERI will assume responsibility for the Emergency Plan as discussed above. In 4

essence, there will be no changes to the Waterford 3 Emergency Plan other than the fact that it will become the responsibility of SERI.

i ,

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25 -

D. Security

{

The proposed license amendment will not impact compliance with the physical security requirements of 10 C.F.R. Part 73. Upon assumption of operating responsibility, SERI will assume ultimate responsibility for implementation of all aspects of the present security program. Appropriate action will be taken as necessary with respect to existing agreements for support from organizations and agencier not affiliated with the licensees to reflect SERI's agency relationship with the owner and SERI's responsibility for management and operation of Waterford 3. Changes to the plans to reflect this transition will not decrease the effectiveness of the plans and will be submitted to the NRC within 30 days after the

( changes are made, in accordance with 10 C.F.R. I 50.54(p).

E. Quality Assurance Program

, The proposed license amendment will not impact compliance with the quality assurance requirements of 10 C.F.R. 50, Appendix B, nor will it reduce the commitments in the NRC accepted quality assurance program description for Waterford 3. Upon

assumption of operating responsibility, SERI will assume the l l

ultimate responsibility for present functions associated with the l Waterford 3 quality assurance program. The organization, function and structure of the Waterford 3 quality assurance department will l l

not be affected by this license amendment. Changes to reflect k- this transition, which will be handled in accordance with I

L - -

10 C.F.R. S0.54(a), will not reduce the commitments in the quality assurance program description.

F. Final Safety Analysis Report With the exception of areas discussed in this license unendment application, the proposed license amendment will not change or invalidate information presently appearing in the Waterford 3 FSAR. Changes necessary to accommodate the proposed license amendment will be incorporated into the Waterford 3 FSAR following NRC approval of the license amendment application, in accordance with 10 C.F.R. 50.71(e).

G. Training The proposed license amendment will not impact compliance with the operator requalification program requirements of 10 C.F.R. 50.54 and related sections, nor maintenance of the Institute of Nuclear Power Operations accreditation for licensed and non-licensed training. Upon assumption of operating responsibility for Waterford 3, SERI will assume ultimate responsibility for implementation of present training programs.

Changes to the programs to reflect this transition will not l decrease the scope of the approved operator requalification I

i program without the specific authorization of the NRC in l

l accordance with 10 C.F.R. 50.54(i).

l ,

1 %

i

1 H. Engineering Support

{

Currently the engineering support for Waterford 3 is provided by a dedicated engineering organization that is an integral part of the Nuclear Operations organization. Because the existing Nuclear Operations organization at LP&L will transfer virtually intact to SERI upon approval of this license amendment, there will be essentially no change in the engineering support provided and no change in the interface between the organizations responsible for engineerina support, and maintenance and operations at Waterford 3. Thus there will be no degradation of the engineering support function and its integration with maintenance and operations. After issuance of the license amendment, as

( evolutionary changes are made to consolidate organizations within SERI, we will ensure the continued integration of the engineering support function with the maintenance and operation function.

k

, (0

. l

. l III. NO SIGNIFICANT HAZARDS CONSIDERATION EVALUATION C

PURSUANT TO 10 C.F.R. 50.92 o

A. Proposed Change The proposed amendment would revise Facility Operating License No. NPF-38 for Waterford 3 to authorize SERI to act on behalf of LP&L, with responsibility for and control over the physical construction, operation, and maintenance of the fact ity.

B. Background

{ SERI is a wholly-owned subsidiary of MSU. It is presently licensed to operate Grand Gulf Unit 1, and to construct Grand Gulf Unit 2. Under the proposed amendment, SERI would assume all responsibilitics for operating Waterford 3. Under the current operating license for Waterford 3, these responsibilities are now held by LP&L, which also is a wholly-owned subsidiary of MSU.

This application is being filed simultaneously with a similar application by AP&L to transfer to SERI operational responsibility for ANO.

Under the terms of the proposed amendment, the operating license for Waterford 3 would recognize SERI as the legal entity which will provide the technical and managerial resources for tha

(

~

~29-continued safe operation of the facility, and as the entity with exclusive authority to make operational safety decisions. The proposed license amendment involves no change in the ownership of the facility and no physical changes to the plant.

All of the current license conditions will remain in effect and the Limiting Conditions for Operation, Limiting Safety System Settings, and Safety Limits specified in the Technical Specifications will remain unchanged. While the emergency plan, security plan, and plant operating and emergency procedures may require administrative changes to reflect SERI's role as agent for the owner and operator of Waterford 3, no changes will be made that decrease the effectiveness of these plans and procedures.

{ Similarly, while the Quality Assurance Program may require administrative changes to reflect the role of SERI, no changes will be made that reduce the commitments in the program. A transition plan will ensure an orderly transfer of existing emergency preparedness responsibilities to SERI. Written procedures and agreements maintained and implemented by SERI and LP&L will clearly ensure continued compliance with GDC 17.

Similarly, an operating agreement will ensure that SERI has authority to determine all activities within the exclusion area.

The technical qualifications of SERI to carry out its responsibilities under the operating License, as amended, will meet or exceed the present technical qualifications of LP&L. LP&L -

(, will continue to act as the operator of Waterford 3, pend 1ng the

. l.

amendment of the Operating License. When the amendment becomes effective, SERI will assume responsibility for, and control over, the physical construction, operation, and maintenance of the facility. The present Waterford 3 Nuclear Operations staff will be transferred essentially intact to SERI. The technical qualifications of the SERI Waterford 3 organization therefore will be at least equivalent to those of the existing organization.

The transfer of operational responsibility for Waterford 3 from LP&L to SERI (along with the transfer from AP&L to SERI of responsibility for ANO-1 and ANO-2) will provide benefits inherent to an integrated system-wide, nuclear operating company. Some of the expected benefits are as follows:

I

(.

(1) SERI, as an operating company for multiple reactors, will have a repository of system nuclear operating expertise and experience. Presently, there is a wealth

! of nuclear operations talent spread throughout the Middle South electric system. Consolidation of this talent into one company should have e synergistic effect. The change will enhance public safety and '

cost-effective operation.

l l

(2) Contolidation of talent not only will result in a merger of expertise and experience for system-wide nuclear operational support, but also will permit the l (.

. specialization of expertise in certain areas that might not otherwise be developed if each of the companies continued to operate their separate facilities.

(3) SERI will be better able to provide a consistent vision for the philosophy of operation of the system nuclear units. A single company responsible for all nuclear operations in the MSU System will allow development of a consistent philosophy which will be specifically designed for nuclear plant operations. This focused philosophy can be used to maintain excellence in all aspects of nuclear operation.

( (4) As a result of the consolidation, there will be more

! effective communication and use of system nuclear operating experience. For example, the system-wide nuclear operating company will allow "lessons learned" to be shared promptly, efficiently, and consistently among the units.

(5) Certain non-nuclear support functions will become specialized and focused on the requirements of all of the system's nuclear units and will thereby be more effective.

k.

(6) Bringing all of the MSU nuclear units under the

{

management of one company will provide a broader base and more competitive environment for upper management candidates who are specialized in nuclear power generation. Further, SERI, in its new role, should provide an environment in which all employees continue to be motivated toward high performance. SERI, with its expanded responsibilities, will also provide greater opportunity for career progression and thus greater opportunity to retain valued employees.

(7) More specifically, as a result of this consolidation, salary structures, career path policies and procedures

( will be internally consistent. Since all of SERI's employees will be "nuclear employees", there will no longer exist any distinction in these areas between employees who support nuclear operations and those who do not. This will permit nuclear managers to focus entirely upon the special needs, qualifications, and requirements of nuclear employses. Human resource and compensation policies tailored to nuclear operations vill allow SERI to be competitive in the market for skilled nuclear professionals without directly influencing, or being bound by, personnel policies and l procedures governing non-nuclear related personnel. The ability to attract superior nuclear talent and retain

(,

I

r ,

quality individuals once recruited will have a direct and positive impact on the quality of Waterford 3 operations.

C. Analysis The following discussion provides a specific analysis of  :

the proposed change agsinst the three standards delineated in  !

10 C.F.R. I 50.92 and demonstrates that the proposed change involves no significant hazards consideration: i

1. The proposed change will not increase the probability or consequences of an accident previously evaluated. The  !

technical qualifications of SERI will be at least

{

equivalent to those of LP&L presently. Personnel qualifications will remain the same as those discussed i

in the Technical Specifications and the FSAR. i d

} SERI presently owns and operates Grand Gulf. The emp4oyees of LP&L and AP&L presently engaged in the 4

operation of Waterford 3, ANO 1 and ANO 2 will become l employees of SERI . The organizational structure of SERI will provide for clear management control and effective j lines of authority and communication among the f l organizational units involved in the management, f

(

operation, and technical support of the facility. j i

i l

As a result of the proposed amendment, there will not be physical changes to the facility, and all Limiting conditions for operation, Limiting Safety system settings, and safety Limits specified in the Technical Specifications will remain unchanged. With the exception of administrative changes to reflect the role of SERI, the quality assurance program, the emergency plan, security plan, and training program are unaffected. Operating agreements will ensure continued compliance with GDC 17 as well as SERI control over activities within the exclusion area.

Therefo.e, the proposed changes will not increase the probability or consequences of an accident previo"M.y evaluated.

2. The proposed amendmer'e will not create the possibility of a new or different kind of accident from any ac;ident

! previously evaluated. The design and design bases of Waterford 3 remain the same. Therefore, the current plant safety analyses remain complete and accurate in addressing the licensing basis events and analyzing plant response and consequences.

The Limiting conditions for operation, Limiting Safety System settings, and Safety Limits are not affected by

( the proposed amendment. With the exception of

. 6

. administrative changes to reflect the role of SERI, plant procedures are unaffected. As such, the plant conditions for which the design basis accident analyses have been performed are still valid. Therefore, the proposed amendment cannot create the possibility of a new or different kind of accident than previously evaluated.

3. The proposed amendment will not involve a reduction in a margin of safety. Plant safety margins are established through Limiting conditions for operation, Limiting safety System Settings, and Safety Limits specified in the Technical Specifications. Since there will be no

( change to the physical design or operation of the plant, there will be no change to any of these margins.

The proposed omendment therefore will not involve a reduction in a margin of safety.

l i D. Conclusion I

Based upon the analysis provided herein, the proposed amendment will not increase the probability or consequences of an accident previously evaluated, create the possibility of a new or

! different kind of accident from any accident previously evaluated, k-

r or involve a reduction in a margin of safety. Therefore, the proposed amendment meets the requirements of 10 C.F.R. 50.92(c) and does not involve a significant hazards consideration nor an unreviewed safety question.

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ENDORSEMENT AND CONSENT LP&L, presently the sole licensee, hereby endorses and consents to this application filed under oath or affirmation by J. G. Dewease, Senior Vice President - Nuclear Operations of LP&L, and the proposed assumption of operating and licensing responsibilities for Wsterford ? 'ay SERI as described above.

/

D. Eunter Executive Vice President -

Operations

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Louisiana Power & Light Company l

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l ACCEPTANCE SERI hereby consents to this application filed under oath or affirmation by J. G. Dewease. Senior Vice President, Nuclear Operations of LP&L. and accepts the proposed assumption of operating and licensing responsibilities for Waterford 3 by SERI as described above. Upon approval and effectiveness of the proposed amendments. SERI agrees to be bound by all applicable NRC regulations, applicable license conditions (as identified in the amenied license), technical specifications. and prior licensee commitments.

f" r Oliver D. King ley. .

Vice President. Nuclear Operations System Energy Resources. Inc.

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NPF-38-83 ATTACIDENT 1 l

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/ ,4 UNITED STATES y',# '

NUCLE AR REGULATORY COM'.11SSION

W A SHING TO N. O. C. 20$ D 5

C.,,....

LOU'S!ANA POWER AND LIGHT COMPANY 3YHV fMMY fissuaces.:fsc.

DOCKET MD. 50-352 Wr,'ERFORD STEAM ELECTRIC STATION, UNIT 3 FACILITY OPERATING LICENSE License No. NPF-38

1. Yhe Nu: lear Regulatory Comission (the Comission or the NRC) has found that: gg A. The applica n for license filed by the Louisiana Power and Light Company ,'^ ........) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's regulations set forth iri 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made;
8. Construction of the Waterford Steam Electric Station Unit 3 l

( (facility), has been substantially completed in confomity with Construction Permit No. CPPR 103 and the application as amended, the provisions of the Act, and regulations of the Comissient C. The ' facility will operate in confomity with the applicacion, as amended, the provisions of the Act, and the regulations of the Comission (except as exempted from compliance in Sections 1.1.

and 2.0. below);

D. There is reasonable assur w a: (1) that the activities authorized

by this operating license can be conducted without endangering the h'ealth and safety of the public. sad (ii) that such activities will be conducted in compliance with the Comission's regulations set i forth in 10 CFR Chapter I (except as exempted from compliance in .

4ctions 1.1. and 2.0 below);  :

KYs'1M Ewt4,y $1sovaqrsDe.(sanZ)g c is technically qualified to enoace E. .;.; ;;;-; __ G ; - ,- - 1 ,

in the activities authorized by this operating license in accordan:e f with the Comission's regulations set futh in 10 CFR Chapter it i F. has satisfied the applicable provisions of 10 CFR Part 140, "Financial Protection Recuirements and Indemnity 4

[c - \

Agreements', of the Comission's regulations;

  1. After a transfer of LP&L nuclear personnel to SEU , SEU has succeedec' LFE as the operator of the Waterford Steam Electric Station, i i Unit 3. Consequently, SEU is authorised to act for itself and for l LP&L and_ has exclusive reer;susibilits-) and conarrJLana__NYLrf)ysical

2

G. The issuance of this license will not be inimical to the comen defense end security or to the health and safety of the public;
s. After weighing the environmental, economic, technical, and other benefits of the facility against environmental and other costs, and af ter considering available alternatives, the issuance of the i Facility Operating License No. NPF-38, subject to the conditions for protection of the environment set forth in the Environmental Protaction Plan attached as Appendix I, is in accordance with 10 CFR Part 51 of the Comission's regulations and all applicable requirements have been satisfied; and I. The receipt, possession, and use of source, byproduct, and soecial nuclear material as authorized by this license will be in at s dance
with the Comission's regulations in 10 CFR Parts 30, 40 and 3, except

! that an exemption to the provisions of 10 CFR 70.24 is granted as Evaluation Report. This described exemption is inauthorized Supplement No.108 CFR under to the Safety (d) and will not endanger 70.24 life or property or the comon defense and security and is otherwise in the public interest. .

2. Pursuant to approval by the Nuclear Regulatory Comission at a meeting on March 15, 1985, the license for fuel loading and low power testing, j

( License No. NPF-26, issued on December 18, 1984, is superseded by Facility Operating' License No. NPF 38 hereby issued to the Louisiana Power and Light Company s....  ::..-...', to read as follows:

t AND SY3rdM dNEMY ffSwdCasjfMC , ,

A. This license applies to the Waterford Steam Electric Station, Unit 3, a pressurized water reactor and associated eautpment (the facility), "'

owned by Louisiana Power and Light Company, { M- - M. The facility is located on the " _ .__J; site in St. Charles Parish, Louisiana and is described i ha Loutstana Power and Light Company

! Final Safety Analysis Report a nded, and the Envirormental Report as amended. Lge, I. Subject to the cenditions and requirements incorporate.1 herein, the Cosmission hereby licenses:L-1;i_ ^_ _. _.. i:J . - d ii.)-

1.LP&l> Pursuant to Section 103 of the Act and 10 CFR Part 50, to 3 possessN the facility at the designated location bp,e ,7 i

in St. Charles Parish, Louisiana in scenidance with the procedures and limitations set forth in this licenset p pP y N 4 Pursuant to the Act and 10 CFR Part 70, to receive, possess, I

' y' g4 and use at any time in accordance withspecial the limitations nuclearfor material storsqcas reactor and fuel, amounts required for reactor operation, as described in the Final i / Safety Analysis Report, as supplemented and amended,r 4 1

(  :=dmemmung:seg=

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I INSERT 3.2 for Waterford 3 License C

2. SERI, pursuant to section 103 of the Act and 10 CFR Part 50, to possess,-

use and operate the facility at the designated location in St. Charles Parish, Louisiana in accordance with the procedures and limitations set '

forth in this license ,

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% ,X /ursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive,

. C Possess, and use at any time any byproduct, source and special nuclear material as sealed neutron sources for reactor startup, sealed sources for reactor instrumentation and radiation monitoring equipment calibration, and as fission detectors in amounts as required; y,f. rsuant to the Act and 10 CR Parts 30, 40, and 70, to receive, possess, and use in amounts as required any byproduct, source or special nuclear material without restriction to chemical or physical fom, for sa ple analysis or instrument calibration or associated with radioactive apparatus or components; and j

(, . g. u s'vant to the Act and 10 CFR Parts 30, 40, and 70, to possess, but not separate, such byproduct and special nuclear materials

as may be produced, by the operation of the facility authorized J herein.

i C. This license shall be deemed to contain and i's subject to the conditions specified in the Comission's regulations set forth in 10 CR Chapter ! and is subject to all applicable provisions of the Act and to the rules, regulations and orders of the Coenission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:

( 1. Maximum Power Level .-

S6RIW is authorized to operate the facility at reactor core power levels not in excess of 3390 megawatts themal (1001 power) in accordance with the conditions specified herein and in Attachment 1 to this Itcense. The items identified in Attachment 1 to this license shall be completed as specified.

Attachment 1 is hereby incorporated into this license.

2. Technical Specifications and Environmental Protection Plan The Technical Specific tons contained in Appendix A, as revised through Amendment No. , and the Environmental Protection Plan contained in Aprendir B, are hereby incorporated in the license.

M1 W shall optrate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.

3. ' Antitrust Conditions L b L =shs=tdsomses: shall comply nth the antitrvst conditions in Appendix C to this license.

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.4 4 Broad _ Range Toxie Gas Detectors (Section 2.2.1, ssED 6')

Prior artup following the first refueling outage, the Itcens all propose technical specifications for the 8r Range Toxic Gas Detection System for inclusion in Appendix A to this license.

5. Initial Inservice inspection Program (Section 6.6, SSER 5)

By June 1,1985, the licensee must submit an initial inservice intpection program for staff review and approval.

6. Environmental Qualification (Section 3.11, $5ER 81 Prior to November 30, 1985, the licensee shall environmentally qualify all electrical equipment according to the provisions of 10 CFR 50.49,
7. Arial Fuel Growth (Section 4.2 $$ER 5)

Prior to entering $tartup (Mode 2) af ter each refueling, the licensee shall either provide a report that demonstrates that the existing fuel element assemblies (FEA) have sufficient available shoulder gap clearance for at least the next cycle of operation, or identify to the NkC and implement a modified FEA

( design that has adequate shoulder gap clearance for at least the next cycle of operation. This requirement will apply until the NRC concurs that the shoulder gap clearance provtded is l

adequate for the design life of the fuel.

8. Emergency Preparedness (Section 13.3, $$ER 8) l In the event that the NRC finds that the lack of progress in completion of the procedures in the Federal Emergency Management Agency's final rule, 44 CFR Part 350, is an l indication that a major substantive problem exists in achieving preparedness,or maintaining an adequate the provisions of 10 CFRstate of emergency 5ection 50.54(s) (2) will apply.

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'The parenthetical notation following the title of mary license conditions denotes the section of the Safety Evaluation Report and/or its supplements wherein the license condition is discussed.

+The license originally authorized LPM. to possess, use and operate

[ the facility. Consequently, certain historical references applicable to LPad, as the "Licensee" appear in these license conditions.

9. Fire Protection (Section 9.5.1 SSER 8)

C a.

St#1 W shall maintain ia effect all provisions of the approved fire protection program as described in the Final Safety Analysis Report for the facility through knendment 36 and as approved in the SER through Supplement 9, subject to provisions b & c below. I "SargI

b. '----- may make no change to features of the approved fire protection program which would decrease the level of fire protection in the plant without prior approval of the Cosmission. To make such a change " " --- must submit an application for license amendment % ant to 10 CFR 50.90.

SER1 SEMZ

c. -3he-44een*** may make changes to features of the approved fire protection program which do not decrease the level of fire protection without prior Commission approval, provided:  !

(1) such changes do not otherwise involve a change i i in a license condition or technical specification or result in an unreviewed safety question (see ,

10CFR50.59).

(2) such changes do not result in failure to complete

! the fire protection gram approved by the Cornission prior to conse issuance,

( S6RIwh shall maintain, in an auditable form, a r

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current record of all such changes including an analysis of the effects of the change on the fire protection r program and shall make such records available to NRC inspectors upon request. All changes to the approved program made without prior Cosmiss'on approval shall be l reported annually to the Director of the .0ffice of Nuclear

  • l Reactor Regulation, together with supporting analyses, q

i d. The Itcensee shall provide smoke detectors in the Control i Room main control panels, which are installed in accordance i with itFPA 7tE. price to startup following the first refueling outage.

e. The licensee shall complete sedifications resultino from l

its spurious signal analysis prior to startup following the fint refueling outage, but in any case not later than  !

June 1. 1M7.

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f. The licensee shall provide neutron flux indication at l C LCP-43 which is electrically independent of the control room and cable vault prior to start up following the first refueling outage, but in any case not later than June 1 I 1987.
g. The licensee shall provide a continuous fire watch in the ,

relay room at the isolation panel from initial criticality until acceptable resolution of adverse effects, if any, of i the loss of this panel on safe shutdown.

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10. Post-Fuel-Loading Initial Test Program (Section 14, 55En 10)

Any changes to the Initial Test Program described in Section 14 of the F$AR made in accordance with the previsions of 10 CFR 50.59 shall be reported in accordance with 50.59(b) within one month of such change.

11. Emergency Response Capabilities (Section 22, $$ER 8) 1 Sur ;;an,=b$em.o : shaii eempiy with the re,uirements of Su,,iement i to NUREG-0737 for the conduct of a Detailed Control Room Design Review (DCROR). Prior to May 1, 1985, the licensee shall submit for staff review and approval the DCROD Sumary Report,
including a description of the process used in carrying out the

! / function and task analysis performed as a part of both the DCROR and the Procedures Generation Package efforts.

12. Reactor Coolant System (RCS) Depressuritation capability (Section

, 5.a.3. 55ER 8) l Iy June 18, 1985, the licensee shall submit the results ef I confirmatory tests regarding the depressurization capability of l the auxiliary pressurizer spray (APS) system. This information suJst demonstrate that the AFS system can perfom the necessary l

depressurization to meet the steam generator single tube rupture accident seceptance criteria ($RP 15.6.3) with loco charging isolation valve failed open. Should the test results fail to demonstrate that the acceptance criteria are met, the Itcensee must provide for staff review and approval, justifica-tien for interia operation, and a schedule for corrective actions.

13. Respnnse to Salem ATVS Event (Section 7.2.9. $$ER A)

The licensee shall subatt respnnses and implement the reavirements of Generic Letter 83 28 on a schedule which is consistent with that otven in the Itcensee's letter of May 30, 1984 k.

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C 14 Fuel Movement in the Fuel Handlina Buildinq In the fuel handling building, during Modes 1 5, no more than one fuel assembly shall be outside an approved shipping container, an approved storage rack, the fuel transfer tube (incitding upender), the fuel elevator, or the spent fuel handling machine.

i In addition to the above fuel assembly inspection / reconstitution say take place outside of an approved storage rack, when required, provided that the inspection / reconstitution area is borated to a level at or above 1720 ppe.

15. Qualification of Personnel (section 13.1.3. 55ER A) l MU--h=-44e==m- shall have en each shift operators who meet the

! requirements described in Attachment 2. Attachment 2 is hereay incorporated into this license.

16. Operational CA Enhancement Program I5SER 9)

! The items listed below shall be completed on the schedule i indicated. ,

a. Prior to completion of Phase !!! of the Waterford 3 l l

(' startup test program, the licensee shall conduct l l a comorehensive audit of the Operational OA Program ,

! that will include a sumery QA document of the '

i Operational CA Program, the definition of responsibilities  :

and interfaces, and guidance on the location of information on QA matters at all levels of concern.

b. Prior to completion of Phase !!! of the Waterford 3 startup test program, the licensee shall supplement l

j tts em' sting CA training program to incorporate specific '

discussion ef OA problems experienced during construction and hnw this experience applies to operational activities,

c. Prior to cJaplation of Phase !!! of the Waterford 3 startup test program, the licensee shall address each of the recomendations in the Task Force Support Grouc ,

i (TFS4) Limited Scope Audit Report of LP&L Operational t)uality Assurance Program, dated December 4.1984

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d. Prior to completion of Phase !!! of the Waterford 3 startue test program, the licensee shall complete corrective actions related to the 23 MRC issues as identified in the LP&L responses.

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( 17. Basemat The licensee shall comoly with its connitments to perfom a basemat cracking surveillance program and additional confirma-

tory analyses of basemat structural strength as described in
its letter of February 25, 1985. Any significant chance to this program shall be reviewed and approved by the NRC staff

{ prior to its implementation. j 2  !

! D. The facility requires an exemption from certain requirements of '

Appendices E and J to 10 CFR Part 50. These exemptions are described in the Office of Nuclear Reactor Regulation's Safety Evaluation ,

i Report, Supplement No.10 (Section 6.1.2) and Supplement No. 8  !

(Section 6.2.6), respectively. These exemptions are authorized by law and will not endanger life or property or the common defense and  ;

security and are otherwise in the public interest. These exemptions  :

i are, therefore, hereby granted pursuant to 10 CFR 50.12. With the I

granting of these exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as  !'

l amended, the provisions of the Act, and the rules and regulations of the Cornission.

' Star E. W shall fully implement and maintain in effect all provisions of the Comission approved physical security, euard training and  ;

cualification, and safeguards contingency plans including amendrents C cade pursuant to provisions of the Misce'llaneous Amendments and Search Requirements revisions to 10 CFR 73.55 ($1 FR 27817 and 27822) l and to the authority of 10 CFR 50.90 and to CFR 30.54(p). The plans, which contain Safeguards Information protccted under 10 CFR 13.21, are entitled: "Waterford Physical Security Plan,' with revisions submitted through March 21,19881 "Waterford Security Training and  :

Ous11ficatiot. Plan,' with revisions submitted through December 16, 1983; and "Waterferd Safeguards Contingercy Plan," with revisions submitted througn January 6, 1987. Changes sac'e in accordance with 10 CFR 73.55 shall be implemented in accordance with the schedule set l forth therein.  !

SERT ,

F. Except as otherwise provided in t echnical Specifications or the Environmental Protection Plan, shall report any violations  !

of the requirements contained in Section 2.C of this license in the following manner. Initial notification shall be made within 24  !

hours to the NRC Operations Center via the Emergency Notification l

System with written follow-vo within 30 days in acccedance with the ,

procedures described in 10 CFR 50.73 (b), (c) and (e). l l

LP+L. - t G. N shall have and maintain financial protection of such type and in such amounts as the Comission shall require in accordance with l 5ection 170 of the Atomic Energy Act of 1954, as amended, to enver

( public liability claims.

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( H. This license is effective as the data of issuance and shall expire at midnight on. December 18, 2024 FOR THE NUCLEAR REGULATORY COM4!$5!0N

. Harold R. Denton, Director Office cf Nuclear Reactor Regulation

Enclosures:

1. Attachment 1
2. Attachment 2
3. Appendix A Technical Specifications) (NUREG-1117) 4 Appendix B Environmental Protection Plan)
5. Appendix C Ant', trust Conditions)

Date of !ssuance: March 16, 1985

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  • ATTACHMENT 1

( WATERFORO STEAM ELECTRIC STATION OPERATING LICENSE NPF-38 1

This attachment identifies items which must be completed to the Comission's i satisfaction prior to startup following the first refueling outage.

  • Continuous, direct position indication in the control room for the containment isolation valves for instrument line penetrations 53 and l

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. ATTACHMENT 2 C Waterford Steam Electric Station Operating 1.tcense NPF-38 Operating Staff Experience Reoviremeg

$521 .

480C shall have a Ifeensed senior operator on each shift who has had at least sfx mo'iths of hot operating experience on a pressurised water reactor, including at least six weeks at power levels greater than 20% of full power, and who has had startup and shutdown experience. For those shifts where such an individual is not available on the plant staff, an advisor shall be provided shu has had at least four years of pnwer plant experience, including two years of nuclear plant experience, and who has had at least one year of experience on shift as a licensed senior operator at a similar type facility. Use of advisort who were Ifeensed only at the R0 level will beevaluated ornrtye-ey-caQsis.

Advisors shall be trained on plant procedures, technical specfTFcalions an'd plant systems, and shall be examined on these toolcs at a level sufficient to to assure fanfifarity with the plant. For each shift, the remainder of the shift crew shall be trained in the role of the advisors. Advisnes, or fully trained and qualf fled replacements, shall be retained until the experience levels identified in the first sentence above have been achieved. The names of any replacement advisors shall be certified by prior to these individuals The NRC shall be 90tified at least 30 days prior tn

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being placed on shift.

the date4#44 proposes to release the advisors f om further service.

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h77 38-83 ATTAChENT 2

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PROPOSED SERI ORGANIZATION CHART CHAIRMAN OF THE BOARD E. A. LUPSERGER PRESIDENT AND CHIEF EXECUTIVE OFFICER W. CAVANAUGH III I I l ARKANSAS l NUCLEAR WATERFORO 3 SUPr0RT ONE FUNCTIONS

1. G. C4MPBELL J. G. OEWEASE I l GRAND Gutt GRAND GULF MUCLEAR ENGINEERING NUCLEAR OPERATIONS & SUPPORT io. D. KINGSLEY, JR. I. H. CLONINGER _

i DN b

i NOTE: QUALITY ORGANIZATIONS FOR EACH PLANT HAVE ACCESS TO h.

? PRESIDENT & CEO ON MRTTERS RELATED TO QUALITY W~

Attartoent 2

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