ML20246J090

Denies Util 890522 Request for Exemption from 10CFR50.54(W) Re Required Amount of Onsite Insurance Coverage.Insurance Requirements of 10CFR50.54(W) Appropriate for Plants W/Full Power OLs

ML20246J090
Person / Time
Site:	Shoreham File:Long Island Lighting Company icon.png
Issue date:	07/07/1989
From:	Butler W Office of Nuclear Reactor Regulation
To:	Leonard J LONG ISLAND LIGHTING CO.
References
TAC-73336, NUDOCS 8907170290
Download: ML20246J090 (5)

Text

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• • • • a g July 7, 1989 Docket No. 50-322 Mr. John D. Leonard, Jr.

Vice President-Nuclear Operations Long Island Lighting Company Shoreham Nuclear Power Station P.O. Box 618, North Country Road Wading River, New York 11792

SUBJECT:

EXEMPTION FROM 10.CFR 50.54(W), REQUIRED AMOUNT OF ON-SITE INSURANCE COVERAGE (TAC NO. 73336)

RE: SHOREHAM NUCLEAR POWER STATION LILCO's letter of May 22, 1989, requested an exemption from the $1.06 billion onsite property damage insurance coverage requirement of 10 CFR 50.54(w) in

light of the LILC0/New York State Settlement Agreement. One of the provisions of this Settlement Agreement is that LILCO not operate the Shoreham p(lant.

Thus,LILCOmadethisrequestundertheprovisionsof10CFR50.12(a)iii)}

that the imposition of the minimum coverage requirements of 10 CFR 50.54(w poses an undue financial burden. LILCO further states that the bases given by the staff in its May 31, 1988, Safety Evaluation Report (SER) which supported the granting of a temporary exemption from the same requirements of 10 CFR 50.54(w) still apply. In the SER, the staff found that until such time that LILCO was authorized to operate the Shoreham plant above the five percent of full-rated power, adherence to the $1.06 billion insurance coverage requirements of 10 CFR 50.54(w) was not necessary to meet the intent of the rule and would place an undue economic burden on LILCO. Consequently, the scif authorized a lower minimum onsite insurance coverage requirement of $337 million.

The staff has completed its review of this most recent exemption request and find that the conditions and circumstances under which the earlier schedular exemption was granted are different significantly from this request. Prior to April 21, 1989, if the LILCO operated the Shoreham plant at a power level greater than five percent of full-rated power, the LILCO's corporate officers would be subjected, under Federal law, to both civil and criminal penalties.

On April 21, 1989, the NRC granted LILCO authorization to operate its Shoreham plant up to full-rated power. The staff views LILC0's current non-operating restriction as self-imposed and for the convenience of LILCO. Currently no Federal restriction exists preventing full power operation of the Shoreham plant. Further, the staff finds that the insurance requirements of 10 CFR 50.54(w) are appropriate for plants that possess full-power operating licenses, 8907170290 890707

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.s j, Mr. John D. Leonard, Jr. Thus the staff has determined, based on the information provided, that LILCO has ft11ed to demonstrate under the provisions of 10 CFR 50.12 an adequate basis to support its 10 CFR 50.54(w) minimum onsite insurance coverage requirement exernption request. In addition;, LILCO failed to demonstrate that the granting of such an exemption would not adversely affect either the public's health or safety in light of its possession of a full-power operating license.

For the reasons stated above, LILCO's 10 CFR 50.54(w) exemption request is denied.

Sincerely, Walter R. Butler, Director Project Directorate I-2 Division of Reactor Projects I/II Office of Nuclear Reactor Regulation cc: See next page .

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Mr. John D; Leonard. Jrr Shoreham Nuclear Power Station -

7 Long Island Lighting Company cc:

Victor A. Staffieri, Esq. Supervisor General Counsel Town of Brookhaven Long Island Lighting Company 205 S. Ocean Ave.

175 East Old County Road Patchogue, New York 11772 Hicksville, New York 11801 Town Attorney W. Taylor Reveley, III, Esq. Town of Brookhaven Hunton & Williams 3232. Route 112 Post Office Box 1535 Medford, NY 11763 707 East Main Street Richmond, Virginia 23212 MNR Technical Associates 1723 Hamilton Avenue Mr. Lawrwnce Britt - Suite K Shoreham Nuclear Power Station San Jose,, California 95125 Post Office Box 618 ,

Wading River, New York 11792 Richard M. Kessel Chairman & Executive Director Mr. John Scalice New York State Consumer Protection Plant Manager .

Board Shoreham Nuclear Power Station Room 1725 Post Office Box 628 250 Broadway Wading River, New York 11792 New York, NY 10007 Resident Inspector Jonathan D. Feinberg, Esq.

Shoreham NPS New York State Department- <

U.S. Nuclear Regulatory Commission of Public Service Post Office Box 8 Three Empire State Plaza Rocky Point, New York 11778 Albany, New York 12223 l

Regional Administrator, Region I Gerald C. Crotty, Esq, i U.S. Nuclear Regulatory Commission Ben Wiles, Esc.

475 Allendale Road Counsel to the Governor King of Prussia, Pennsylvania 19406 Executive Chamber State Capitol Ms. Donna Ross Albany, New York 12224 New York State Energy Office Agency Building 2 Herbert H. Brown, Esq. I Empire State Plaza Lawrence Coe Lanpher, Esq. l Albany, New York '12223 Karla J. Letsche, Esq.

Kirkpatrick & Lockhart South Lobby - 9th Floor 1800 M Street, N.W.

Washington, D.C. 20036-5891 1

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Long Island Lighting Company Shoreham cc:

l Dr. Monroe Schneider Mr. Charlie Donaldson l' -

North Shore Committee Assistant Attorney General Post Office Box 231 NYS Department of Law Wading River, NY 11792 Room 3-118 120 Broadway Fabian G. Palomino, Esq. New York, NY 10271 Special Counsel to the Governor Executive Chamber - State Capitol James P. McGranery, Jr., Esq.

Albany, NY 12224 Dow, Lohnes and Alberson Suite 500 l Martin Bradley Ashare, Esq. 1255 23 Street, N.W.

l Suffolk County Attorney Washington, D.C. 20037 H. Lee Dennison Building Veteran's Memorial Highway Dr. A. David Rossin Hauppauge, NY 11788 Resources Conservation

• Organization Suite 320 Robert Abrams, Esq. 101 First Street Attorney General of the State

• Los Altos, CA 94022 of New York ATTN: John Corwin, Esq.

New York State Department of Law Consumer Protection Bureau 120 Broadway 3rd Floor New York, NY 10271 l Honorable Peter Cohalan l Suffolk County Executive l- County Executive / Legislative Building i Veteran's Memorial Highway Hauppauge, NY 11788 Ms. Nora Bredes Shoreham Opponents Coalition 195 East Main Street Smithtown, New York 11787 Chris Nolin New York State Assembly Energy Comittee .

626 Legislative Office Building Albany, New York 12248 1

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Mr. John D. Leonard, Jr. 2-Thus the staff has determined, based'on the'information provided, that LILCO has failed to demonstrate under the provisions of 10 CFR 50.12 an adequate basis to support its 10 CFR 50.54(w) minimum onsite insurance coverage requirement exemption request. In addition, LILC0~ failed to demonstrate that the granting-of such an exemptfon would not adversely affect either the public's health or safety in. light of its possession of'a full-power operating license.

For the reasons stated above, LILCO's 10 CFR 50.54(w) exemption request is denied.

Sincerely,

/s/

Walter R. Butler, Director Project Directorate I-2 Divisic, of Reactor Projects I/II Office of Nuclear Reactor Regulation cc: See next page

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