ML20206C108

Requests for Renewal or Extension of Exemption from 10CFR50.54(w)(i) Re Property Insurance Regulations

ML20206C108
Person / Time
Site:	Cooper, Fort Calhoun, 05000000
Issue date:	11/04/1988
From:	Voigt H LEBOEUF, LAMB, LEIBY & MACRAE, NEBRASKA PUBLIC POWER DISTRICT, OMAHA PUBLIC POWER DISTRICT
To:
Shared Package
ML20205Q344	List: ML20205Q338 ML20206C108 ML20206C134
References
NUDOCS 8811160105
Download: ML20206C108 (4)

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

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In the Matter of )

) [ i NEBRASKA PUBLIC POWER DISTRICT ) Docket No. 50-294

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, In tiie L .tter of )

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OMAllA l' 9LIC POWER DISTRICT ) Docket No. 50-285

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REQUEST FOR RENEWAL OR EXTENSION OF EXEMPTION Introduction Pursuant to 10 C.F.R. 5 50.12 (a) (2) (v) (1) , Nebraska Public Power District ("NPPD") and Omaha Public Power District

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("OPPD") (collectively, "the Districts"), each of which is a ,

political subdivision of the State of Nebraska, hereby apply for r a renewed or extended schedular exemption from the requirements l a i

, of 10 C.F.R. 5 50.54 (w) (1) (1988). Each of the Districts was l I L granted a schedular oxomption on December 2, 1987. 52 Fed. Reg.

.I 46543, 46544 (1987). Thoso exemptions will expire on December 5, l l 1988. As set forth below, the Districts will be unable to comply '

] with the Commission's property insurance regulations by that i i dato, so that a further schedular exemption is necessary.  ;

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i Backaround ,

The background for this request'is the same as that set forth in the Districts' original Request;for Exemption filed with the Commission on October 2, 1987, a copy of which is' attached hereto and made a part hereof.

Becent Develoomenta l As reported to the' Commission by letter dated  :

September 30, 1988 to Stuart A. Treby, Esq., the Nebraska Supremo ,

! Court, in an opinion filed on September.9, 1988, denied the Districts' request for a declaratory judgment that the Nebraska Constitution does not prevent them from purchasing nuclear i property insurance from Nuclear Electric Insurance Limited

("NEIL"). A copy of the Court's opinion was filed with the commission with that letter. The Districts, on September 15, l filed a motion for rohoaring with the Nebraska Supreme Court. A  :

I copy of that motion was also filed with the commission with the I

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September 30 letter. To date, no action has been taken by the  ;

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Nebraska Supremo Court on the motion for rehearing. It is  !

I i considered unlikely that the Court will alter the opinion filed t

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] To date, NEIL has refusod to issue the required j insuranco policy unless and until the Districts obtain a i 4

i l satisfactory court order. Accordingly, it appears that the  !

l j Districts will now be required to seek relief from the United  ;

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) States District Court in Nebraska. As soon as the Nebraska  !

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Supreme Court acts upon the pending motion for rehearing, the Districts will promptly go forward in federal court. It is obvious, however, that no final relief can be obtained prior to December 5, 1988. Indeed, completion of a declaratory action judgment in federal court is likely to require approximately 18 months.

Basis for Renewal or Extension of Exemotions The Districts have asserted, and the Commission has found, 52 Fed. Reg. 28966, that they are unable to provida equivalent protection in lieu of purchasing the NEIL coverage.

5 The Districts have repeatedly stated to this Commission, and to the Nebraska courts, that they desire to purchase insurance from NEIL as a matter of prudent business judgment and good utility t practico. The Districts in no way seek to avoid compliance with the Commission's regulations. Rather, they find themselves in the position of being unable to comply unless and until a f i

l satisfactory final ruling can be obtained from either a state or federal court. The Districts therefore require a further schedular oxomption to give them timo to obtain such a ruling.

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Recuest for Relief 1  !

l The Districts roquest that the Commission issue a ,

renewod or extended schedular exemption from the requirements of i 5 50.54 (w) (1) to continue until a satisfactory order from a stato l

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or federal court has been obtained and NEIL has issued the necessary policy to the Districts.

Respectfully submitted, LeBOEUF, LAMB, LEIBY & MacRAE By AMrk $ $ld d Partner d 1333 New Hampshire Avenue, N.W.

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Washington, D.C. 20036 t 202/457-7500 ,

Attorneys for Nebraska Public Power i District and Omaha Public Poygr i District November 4, 1988 d

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