ML20206T432

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Withdraws Application for Ols.Facility Will Be Converted to combined-cycle gas-fired Plant.Abandonment Actions & Equipment Sales Will Provide Assurance That Plant Cannot Be Used as Nuclear Facility
ML20206T432
Person / Time
Site: Midland
Issue date: 07/01/1986
From: Jackie Cook
CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To: Harold Denton
Office of Nuclear Reactor Regulation
References
32744, NUDOCS 8607080127
Download: ML20206T432 (6)


Text

CORSun18tS POVrer 1

Company Vice President - Projects, Engineering and Construction oeneret offices: 1945 West PerneH Road, Jackson, MI 49201 e (517) 78&O453 July 1, 1986 Mr H R Denton, Director Office of Nuclear Reactor Regulation Division of Licensing US Nuclear Regulatory Commiss.fon Washington, DC 20555 MIDLAND ENERGY CENTER DOCKET NOS 50-329 AND 50-330 WITHDRAWAL OF LICENSE APPLICATIONS FILE 1300, 0485.2, 0485.11 SERIAL 32744

Reference:

1) CP Co (J E Brunner) letter to ASLB dated April 21, 1986
2) CP Co (J W Cook) letter to USNRC (H R Denton), Serial 31656, dated September 11, 1984
3) CP Co Quality Assurance Program Plan for the Surveillance and Maintenance Phase of the Midland Energy Center transmitted by J W Cook letter to J G Keppler, Serial 32272 dated May 13, 1985
4) Letter, C E Norelius to J W Cook dated July 15, 1985 Reference 1 advised the ASLB of a study concluding that the Midland Plant should be converted to a combined-cycle gas-fired plant, but that relief from certain conditions imposed by the Michigan Public Service' Commission and various banks would be necessary before further funds could be expended on the Plant. Accordingly, it was the Company's desire at that time to keep its options open by retaining the construction permits and the operating license in an inactive state..

Although the MPSC has not granted the requested relief, the Company's board of directors, on June 18, 1986, authorized the officers of the Company to abandon the nuclear steam supply systems and other Plant buildings and components that would not be usable were the Plant converted to a combined-cycle, gas-fired facility. J G Keppler - Regional Administrator, Richard H Vollmer - Deputy Director Office of Nuclear Reactor Regulation, and T S Michaels - NRR Midland Project Manager, were all notified by telephone of the abandonment decision that same day. An extract of the board meeting minutes including the pertinent resolutions is attached.

8607080127 860701 PDR ADOCK 05000329 h00l A

PDR OC0586-0023B-MP02 l

SERIAL 32744 2

Reference 2 submitted the Company's application to amend the construction permits for Units I and 2 of the Midland Plant by extending the completion dates to December 1, 1989 and July 1, 1989, respectively. No NRC action has been taken on that request.

In light of the Company's decision not to com-plete the plant as a nuclear plant, and to abandon the portions of the plant that would not be usable in a gas combined-cycle facility, the Company hereby requests that its application to amend the construction permits by extending the unit completion dates be considered withdrawn.

Likewise, the Company hereby requests that its application for operating licenses for the Midland units be considered withdrawn. Since the matter of the OL application is presently pending before the ASLB, which may therefore prescribe the terms of withdrawal pursuant to 10 CFR Section 2.107, a with-drawal motion will be filed with the ASLB.

Site environmental stabilization actions were taken as part of the transition to the surveillance and maintenance mode following the construction termina-tion. The Michigan Department of Natural Resources has approved the Midland cooling pond maintenance program and found the program to be successfully implemented in a September 1985 inspection. No additional specific environmen-tal protection efforts are required as a result of abandoning the nuclear option for the Midland Energy Center.

An appropriate Nuclear grade QA Program will continue to be applied to those nuclear components which we hope to sell to other utilities; however, it is our intent that the QA Program submitted and approved by References 3 and 4, respectively, will no longer be applied to other safety related items.

The current plant completion status (approximately 85% complete) assures that the facility is not usable as a nuclear production or utilization facility.

The steam generator pressure boundary is breached to accommodate the external feedwater header modification. We have sold approximately half of our control rods and have authorized B&W to destroy the remaining ones te salvage the silver content.

In addition, there were thousands of feet of pipe and tubing and many thousands of feet of wire and cable yet to be installed to complete the plant. Abandonment actions and equipment sales, when taken, will provide additional assurance that the plant cannot be used as a nuclear facility.

Your expeditious disposition of the foregoing withdrawal requests would be appreciated.

h OC0586-0023B-MP02

SERIAL 32744 3

j CONSUMERS POWER COMPANY j

By M

e James W Cook, Vice President P jects, Engineering and Construction orn and subscribed before me this / day of

,/9/I 0M m,

Notary'Public Jackson County, Michigan dd/fff" My commission expires u/

JWC/WRB/lr CC: TMichaels, NRR Project Manager, Washington JGKeppler, Administrator, NRC Region III MIMiller, IL&B l

OC0586-0023B-MP02

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4 SERVICE LIST Frank J Kelley, Esq Steve Gadler, Esq Attorney General of the 2120 Carter Avenue State of Michigan St Paul, Minnesota 55108 Carole Steinberg, Esq Assistant Attorney General Atomic Safety & Licensing Environmental Protection Div Appeal Panel 720 Law Building US Nuclear Regulatory Commission Lansing, MI 48913 Washington, DC 20555 Myron M Cherry, Esq Chief, Docketing & Services Cherry & Flynn US Nuclear Regulatory Commission Suite 3700 Office of the Secretary Three First National Plaza Washington, DC 20555 Chicago, IL 60602 Ms Mary Sinclair Lynne Bernabei, Esq 5711 Summerset Street Thomas Devine, Esq Midland, MI 48640 Louis Clark, Esq i

Covernment Accountability Project Mr Joseph Rutberg of the Institute for Policy Studies Asst Chief Hearing Counsel 1901 Q Street, NW US Nuclear Regulatory Commission Washington, DC 20009 Office of the Executive Legal Director Mr D W Montgomery Washington, DC 20555 Babcock & Wilcox PO Box 1260 Atomic Safety & Licensing Lynchburg, VA 24505 Board Panel US Nuclear Regulatory Commission James E Brunner, Esq Washington, DC 20555 Consumers Power Company 212 W Michigan Avenue Ms Barbara Stamiris 1

Jackson, MI 49201 5795 North River Road, Route 3 Freeland, MI 48623 Samuel A Haubold, Esq Kirkland & Ellis Alan S Rosenthal, Chairman 200 East Randolph Drive Atomic Safety & Licensing Chicago, IL 60601 Appeal Panel E/W 532 Thomas S Moore US Nuclear Regulatory Commission Atomic Safety & Licensing Washington, DC 20555 Appeal Panel E/W 532 Mr Custave A Linenberger, Jr US Nuclear Regulatory Commission Atomic Safety & Licensing Wcshington, DC 20555 Board Panel

'US Nuclear Regulatory Commission Washington, DC 20555 Charles Bechhoefer, Esq Dr Jerry Harbour Atomic Safety & Licensing Atomic Safety & Licensing US Nuclear Regulatory Commission Board Panel

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Washington, DC 20555 US Nuclear. Regulatory Commission Washington, DC 20555 i

OC0586-0023B-MP02

1 Attachment to 4

Serial 32744 Extract from minutes of spec'ial meeting of the Board of Directors of Consu=ers Power Co=pany held on June 18, 1986.

Midland Project The entire Midland Project, with the exception of the process steam equipment, syste=s and facilities located in and about the evaporator building which were abandoned during 1985, has been maintained since the shutdown of construction in a condition which would permit its completion by the Company as a nuclear power plant. Based on political and regulatory risks,'and the Company's

~

current financial situation, there appears to.be no. reasonable possibility that the Midland Project can be completed as a nuclear power plant. Also, on April 8, 1986, this Board authorized conversion of Unit 1 of the Midland Project to a natural gas-fueled, ccebined cycle plant. As a result, the nuclear steas supply systems, certain buildings, and other components of the Midland Project have become unusable.

It is canagement's recoemendation that the Company abandon the nuclear steam supply systems and other unusable buildings and components of the Midland Project, including the Midland Unit I reactor building and its contents, the.

l Midland Unit 2 reactor building and its contents, the auxiliary building (other than the control tower) and its contents, the cooling tower, and such other components of the Midland Project as the officers of the Company may identify from time to time as unusable. The matter was discussed fully.

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Upon motion duly made and seconded, the following resolutions were thereupon unanimously adoptad:

RESOLVED: That the officers of the Company are authorized, in their discretion, to abandon the nuclear stean supply systems and other unusable buildings and components of the Midland Project, including the Midland Unit I reactor building and its contents, Midland Unit 2 reactor building and its contents, the auxiliary building (other than the control cover) and its contents, the cooling tower and such other-components of the Midland Project as the officers of the Company may fron et=e to time identify as unusable, all without further 4

action of this Board; and t

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RESOLVED FURTHER: That the officers of the Co=pany are authorized to take such actions to schedule and carry out the abandonment as, in their discretion, they dees advisable,

'such as (i) discarding, dismantling or rendering physically unusable the abandoned buildings or components, (ii) offering for sale the salvageable compenents, (iii) reducing or discontinuing to the extent feasible surveillance, maintenance and other similar activities with respect to the components, if any, which cannot be salvaged, (iv) reducing insurance coverage, (v) taking steps to terminate the Nuclear Regulatory Co==ission construction permits and operating license application, and (vi) making such filings with governmental agencies and othere as may be necessary or advisable.

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1 I, T. A. McNish, Secretary of Consumers Power Company, CERTIFY that the foregoing is a true and correct copy of resolutions duly and regularly i

adopted at a special meeting of the Board of Directors of Consu=ers Power Company held June 18, 1986, at which a quorum was in attendance and voting j

throughout, and that said resolutions have not since-been rescinded but are still in full-force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Cocpany this 19th day of June.1986.

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T. A. McNish Secretary I

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