ML20246J030
| ML20246J030 | |
| Person / Time | |
|---|---|
| Issue date: | 08/05/1985 |
| From: | Kerr G NRC OFFICE OF STATE PROGRAMS (OSP) |
| To: | Mattox J TEXAS, STATE OF |
| Shared Package | |
| ML20244E570 | List: |
| References | |
| NUDOCS 8905160272 | |
| Download: ML20246J030 (2) | |
Text
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'd Enclosure 3.1 4
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The Honorable Jim Mattox
-Attorney General .
State of Texas Austin, Texas 78711
Dear Mr. Attorney General:
On November 8,1984, the U.S. Nuclear Regulatory Commission published a proposed rule in the Federal Register (49 FR 44645) that would, if implemented, substantially increase the amount of on-site property damage
-insurance that operating power reactor licensees would be required to carry. We understand from coments we have received on the proposed rule from Houston Lighting and Power Company and Matthews and Branscomb, counsel to the City of San Antonio, (comments enclosed) that, in their view, the Texas Constitution essentially prohibits publicly-owned utilities from purchasing insurance either offered by mutual insurance companies (i.e.,
companiesownedbythosebuyingtheinsurance)orrequiringpaymentof premiums retroactively after an accident has occurred.
The Commission's proposed rule would require an amount of insurance such that licensees would be required to purchase insurance offered by mutual The insurers and potentially requiring payment of retroactive premiums.
NRC's legal analysis of this issue has concluded that the Federal government cannot preempt State law tb t prohibits the purchase of such insurance. The enclosed copy of the notice of proposed rulemaking
- discusses this issue in more detail beginning on page 44649. As a further complication, it may be difficult for the Comission to find adequate technical justification to exempt affected publicly-owned utilities from the requirements of the rule as long as a general finding is made that a certain amount of insurance is required to protect public health and safety.
We would appreciate your opinion as to whether the enclosed Also,would coments accurately reflect the constitutional situation in Texas.
publicly-owned utilities be in compliance with Texas la the other owners purchased mutual or assessment insurance such that the combined insurance purchased by all licensees would be sufficient to We provide full coverage as required by the Nuclear Regulatory Commission?
would appreciate any comments you may have on how the purchase the full amount of insurance required in States like ,
part of the public record for the property insurance rulemaking.
-~~~ - - """""""""
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- 2 Tliank you in advance for your cooperation in this matter. .
Sincerely, G. Way'ne Kerr. Director Office of State Programs
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Enclosures:
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Subject:
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