ML20303A119
| ML20303A119 | |
| Person / Time | |
|---|---|
| Site: | Farley |
| Issue date: | 12/11/2020 |
| From: | Shawn Williams Plant Licensing Branch II |
| To: | Gayheart C Southern Nuclear Operating Co |
| Williams S | |
| References | |
| EPID L-2020-LLA-0121 | |
| Download: ML20303A119 (26) | |
Text
'HFHPEHU
0V&KHU\\O$*D\\KHDUW
5HJXODWRU\\$IIDLUV'LUHFWRU
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\
&RORQQDGH3DUNZD\\
%LUPLQJKDP$/
68%-(&7
-26(3+0)$5/(<18&/($53/$1781,76$1'+/-,668$1&(2)
$0(1'0(17126$1'5(*$5',1*$'237,212)767)
5(9,6,21³$&217$,10(1768037672$5(66*6,
,668(6'(3,'///$
'HDU0V*D\\KHDUW
7KH861XFOHDU5HJXODWRU\\&RPPLVVLRQWKH&RPPLVVLRQKDVLVVXHGWKHHQFORVHG
$PHQGPHQW1RWR5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVH1R13)DQG$PHQGPHQW
1RWR5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVH1R13)IRUWKH-RVHSK0)DUOH\\1XFOHDU
3ODQW8QLWVDQGUHVSHFWLYHO\\7KHDPHQGPHQWVDUHLQUHVSRQVHWR\\RXUDSSOLFDWLRQGDWHG
0D\\
7KHDPHQGPHQWVDGGDQHZ7HFKQLFDO6SHFLILFDWLRQ76³&RQWDLQPHQW6XPS'DQG
PRGLILHVVXUYHLOODQFHUHTXLUHPHQWVLQ76³(&&6>(PHUJHQF\\&RUH&RROLQJ6\\VWHPV@+/-
2SHUDWLQJ'DQG76³(&&66KXWGRZQ'WRDGRSW7UDYHOHU7HFKQLFDO6SHFLILFDWLRQ7DVN
)RUFH767)5HYLVLRQ³$GG&RQWDLQPHQW6XPS76WR$GGUHVV*6O,VVXHV'
$FRS\\RIWKHUHODWHG6DIHW\\(YDOXDWLRQLVDOVRHQFORVHG$1RWLFHRI,VVXDQFHZLOOEHLQFOXGHG
LQWKH&RPPLVVLRQ¶VPRQWKO\\Federal RegisterQRWLFH
6LQFHUHO\\
/RA/
6KDZQ$:LOOLDPV6HQLRU3URMHFW0DQDJHU
3ODQW/LFHQVLQJ%UDQFK,,
'LYLVLRQRI2SHUDWLQJ5HDFWRU/LFHQVLQJ
2IILFHRI1XFOHDU5HDFWRU5HJXODWLRQ
'RFNHW1RVDQG
(QFORVXUHV
$PHQGPHQW1RWR13)
$PHQGPHQW1RWR13)
6DIHW\\(YDOXDWLRQ
FF/LVWVHUY
(QFORVXUH
6287+(5118&/($523(5$7,1*&203$1<
$/$%$0$32:(5&203$1<
'2&.(712
-26(3+0)$5/(<18&/($53/$1781,7
$0(1'0(17725(1(:(')$&,/,7<23(5$7,1*/,&(16(
$PHQGPHQW1R
5HQHZHG/LFHQVH1R13)
7KH861XFOHDU5HJXODWRU\\&RPPLVVLRQWKH&RPPLVVLRQKDVIRXQGWKDW
$
7KHDSSOLFDWLRQIRUDPHQGPHQWWRWKH-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWWKH
IDFLOLW\\5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVH1R13)WKHOLFHQVHILOHGE\\
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\WKHOLFHQVHHGDWHG0D\\
FRPSOLHVZLWKWKHVWDQGDUGVDQGUHTXLUHPHQWVRIWKH$WRPLF(QHUJ\\$FWRI
DVDPHQGHGWKH$FWDQGWKH&RPPLVVLRQ¶VUXOHVDQGUHJXODWLRQVVHWIRUWKLQ
7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV&)5&KDSWHU,
%
7KHIDFLOLW\\ZLOORSHUDWHLQFRQIRUPLW\\ZLWKWKHDSSOLFDWLRQWKHSURYLVLRQVRIWKH
$FWDQGWKHUXOHVDQGUHJXODWLRQVRIWKH&RPPLVVLRQ
&
7KHUHLVUHDVRQDEOHDVVXUDQFHLWKDWWKHDFWLYLWLHVDXWKRUL]HGE\\WKLV
DPHQGPHQWFDQEHFRQGXFWHGZLWKRXWHQGDQJHULQJWKHKHDOWKDQGVDIHW\\RIWKH
SXEOLFDQGLLWKDWVXFKDFWLYLWLHVZLOOEHFRQGXFWHGLQFRPSOLDQFHZLWKWKH
&RPPLVVLRQ¶VUHJXODWLRQV
'
7KHLVVXDQFHRIWKLVDPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQG
VHFXULW\\RUWRWKHKHDOWKDQGVDIHW\\RIWKHSXEOLFDQG
(
7KHLVVXDQFHRIWKLVDPHQGPHQWLVLQDFFRUGDQFHZLWK&)53DUWRIWKH
&RPPLVVLRQ¶VUHJXODWLRQVDQGDOODSSOLFDEOHUHTXLUHPHQWVKDYHEHHQVDWLVILHG
$FFRUGLQJO\\WKHOLFHQVHLVDPHQGHGE\\FKDQJHVWRWKH7HFKQLFDO6SHFLILFDWLRQVDV
LQGLFDWHGLQWKHDWWDFKPHQWWRWKLVOLFHQVHDPHQGPHQW3DUDJUDSK&RIWKHOLFHQVH
LVKHUHE\\DPHQGHGWRUHDGDVIROORZV
7HFKQLFDO6SHFLILFDWLRQV
7KH7HFKQLFDO6SHFLILFDWLRQVFRQWDLQHGLQ$SSHQGL[$DVUHYLVHGWKURXJK
$PHQGPHQW1RDUHKHUHE\\LQFRUSRUDWHGLQWKHUHQHZHGOLFHQVH6RXWKHUQ
1XFOHDUVKDOORSHUDWHWKHIDFLOLW\\LQDFFRUGDQFHZLWKWKH7HFKQLFDO6SHFLILFDWLRQV
7KLVDPHQGPHQWLVHIIHFWLYHDVRILWVGDWHRILVVXDQFHDQGVKDOOEHLPSOHPHQWHGZLWKLQ
GD\\VIURPWKHGDWHRILVVXDQFH
)257+(18&/($55(*8/$725<&200,66,21
0LFKDHO70DUNOH\\&KLHI
3ODQW/LFHQVLQJ%UDQFK,,
'LYLVLRQRI2SHUDWLQJ5HDFWRU/LFHQVLQJ
2IILFHRI1XFOHDU5HDFWRU5HJXODWLRQ
$WWDFKPHQW
&KDQJHVWRWKH5HQHZHG)DFLOLW\\
2SHUDWLQJ/LFHQVHDQG7HFKQLFDO
6SHFLILFDWLRQV
'DWHRI,VVXDQFH'HFHPEHU
Michael T.
Markley Digitally signed by Michael T.
Markley Date: 2020.12.11 13:56:30 -05'00'
(QFORVXUH
6287+(5118&/($523(5$7,1*&203$1<
$/$%$0$32:(5&203$1<
'2&.(712
-26(3+0)$5/(<18&/($53/$1781,7
$0(1'0(17725(1(:(')$&,/,7<23(5$7,1*/,&(16(
$PHQGPHQW1R
5HQHZHG/LFHQVH1R13)
7KH861XFOHDU5HJXODWRU\\&RPPLVVLRQWKH&RPPLVVLRQKDVIRXQGWKDW
$
7KHDSSOLFDWLRQIRUDPHQGPHQWWRWKH-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWWKH
IDFLOLW\\5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVH1R13)WKHOLFHQVHILOHGE\\
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\WKHOLFHQVHHGDWHG0D\\
FRPSOLHVZLWKWKHVWDQGDUGVDQGUHTXLUHPHQWVRIWKH$WRPLF(QHUJ\\$FWRI
DVDPHQGHGWKH$FWDQGWKH&RPPLVVLRQ¶VUXOHVDQGUHJXODWLRQVVHWIRUWKLQ
&)5&KDSWHU,
%
7KHIDFLOLW\\ZLOORSHUDWHLQFRQIRUPLW\\ZLWKWKHDSSOLFDWLRQWKHSURYLVLRQVRIWKH
$FWDQGWKHUXOHVDQGUHJXODWLRQVRIWKH&RPPLVVLRQ
&
7KHUHLVUHDVRQDEOHDVVXUDQFHLWKDWWKHDFWLYLWLHVDXWKRUL]HGE\\WKLV
DPHQGPHQWFDQEHFRQGXFWHGZLWKRXWHQGDQJHULQJWKHKHDOWKDQGVDIHW\\RIWKH
SXEOLFDQGLLWKDWVXFKDFWLYLWLHVZLOOEHFRQGXFWHGLQFRPSOLDQFHZLWKWKH
&RPPLVVLRQ¶VUHJXODWLRQV
'
7KHLVVXDQFHRIWKLVDPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQG
VHFXULW\\RUWRWKHKHDOWKDQGVDIHW\\RIWKHSXEOLFDQG
(
7KHLVVXDQFHRIWKLVDPHQGPHQWLVLQDFFRUGDQFHZLWK&)53DUWRIWKH
&RPPLVVLRQ¶VUHJXODWLRQVDQGDOODSSOLFDEOHUHTXLUHPHQWVKDYHEHHQVDWLVILHG
$FFRUGLQJO\\WKHOLFHQVHLVDPHQGHGE\\FKDQJHVWRWKH7HFKQLFDO6SHFLILFDWLRQVDV
LQGLFDWHGLQWKHDWWDFKPHQWWRWKLVOLFHQVHDPHQGPHQW3DUDJUDSK&RIWKHOLFHQVH
LVKHUHE\\DPHQGHGWRUHDGDVIROORZV
7HFKQLFDO6SHFLILFDWLRQV
7KH7HFKQLFDO6SHFLILFDWLRQVFRQWDLQHGLQ$SSHQGL[$DVUHYLVHGWKURXJK
$PHQGPHQW1RDUHKHUHE\\LQFRUSRUDWHGLQWKHUHQHZHGOLFHQVH
6RXWKHUQ1XFOHDUVKDOORSHUDWHWKHIDFLOLW\\LQDFFRUGDQFHZLWKWKH
7HFKQLFDO6SHFLILFDWLRQV
7KLVDPHQGPHQWLVHIIHFWLYHDVRILWVGDWHRILVVXDQFHDQGVKDOOEHLPSOHPHQWHGZLWKLQ
GD\\VRILVVXDQFH
)257+(18&/($55(*8/$725<&200,66,21
0LFKDHO70DUNOH\\&KLHI
3ODQW/LFHQVLQJ%UDQFK,,
'LYLVLRQRI2SHUDWLQJ5HDFWRU/LFHQVLQJ
2IILFHRI1XFOHDU5HDFWRU5HJXODWLRQ
$WWDFKPHQW
&KDQJHVWRWKH5HQHZHG)DFLOLW\\
2SHUDWLQJ/LFHQVHDQG7HFKQLFDO
6SHFLILFDWLRQV
'DWHRI,VVXDQFH'HFHPEHU
Michael T.
Markley Digitally signed by Michael T. Markley Date: 2020.12.11 13:57:09 -05'00'
$77$&+0(1772-26(3+0)$5/(<18&/($53/$1781,76$1'
/,&(16($0(1'0(1712
725(1(:(')$&,/,7<23(5$7,1*/,&(16(1213)
'2&.(712
$1'/,&(16($0(1'0(1712
725(1(:(')$&,/,7<23(5$7,1*/,&(16(1213)
'2&.(712
5HSODFHWKHIROORZLQJSDJHVRIWKH5HQHZHG)DFLOLW\\2SHUDWLQJ/LFHQVHVDQG$SSHQGL[³$'
7HFKQLFDO6SHFLILFDWLRQV76VZLWKWKHDWWDFKHGUHYLVHGSDJHV7KHUHYLVHGSDJHVDUH
LGHQWLILHGE\\DPHQGPHQWQXPEHUDQGFRQWDLQPDUJLQDOOLQHVLQGLFDWLQJWKHDUHDVRIFKDQJH
5HPRYH
,QVHUW
/LFHQVH
/LFHQVH
13)SDJH
13)SDJH
13)SDJH
13)SDJH
76V
76V
LL
LL
)DUOH\\8QLW
5HQHZHG/LFHQVH1R13)
$PHQGPHQW1R
7HFKQLFDO6SHFLILFDWLRQV
7KH7HFKQLFDO6SHFLILFDWLRQVFRQWDLQHGLQ$SSHQGL[$DVUHYLVHG
WKURXJK$PHQGPHQW1RDUHKHUHE\\LQFRUSRUDWHGLQWKH
UHQHZHGOLFHQVH6RXWKHUQ1XFOHDUVKDOORSHUDWHWKHIDFLOLW\\LQ
DFFRUGDQFHZLWKWKH7HFKQLFDO6SHFLILFDWLRQV
$GGLWLRQDO&RQGLWLRQV
7KHPDWWHUVVSHFLILHGLQWKHIROORZLQJFRQGLWLRQVVKDOOEHFRPSOHWHGWRWKH
VDWLVIDFWLRQRIWKH&RPPLVVLRQZLWKLQWKHVWDWHGWLPHSHULRGVIROORZLQJWKH
LVVXDQFHRIWKHUHQHZHGOLFHQVHRUZLWKLQWKHRSHUDWLRQDOUHVWULFWLRQV
LQGLFDWHG7KHUHPRYDORIWKHVHFRQGLWLRQVVKDOOEHPDGHE\\DQ
DPHQGPHQWWRWKHUHQHZHGOLFHQVHVXSSRUWHGE\\DIDYRUDEOHHYDOXDWLRQE\\
WKH&RPPLVVLRQ
D
6RXWKHUQ1XFOHDUVKDOOQRWRSHUDWHWKHUHDFWRULQ2SHUDWLRQDO
0RGHVDQGZLWKOHVVWKDQWKUHHUHDFWRUFRRODQWSXPSVLQ
RSHUDWLRQ
E
'HOHWHGSHU$PHQGPHQW
F
'HOHWHGSHU$PHQGPHQW
G
'HOHWHGSHU$PHQGPHQW
H
'HOHWHGSHU$PHQGPHQW
'HOHWHGSHU$PHQGPHQW
I
'HOHWHGSHU$PHQGPHQW
J
6RXWKHUQ1XFOHDUVKDOOPDLQWDLQDVHFRQGDU\\ZDWHUFKHPLVWU\\
PRQLWRULQJSURJUDPWRLQKLELWVWHDPJHQHUDWRUWXEHGHJUDGDWLRQ
7KLVSURJUDPVKDOOLQFOXGH
,GHQWLILFDWLRQRIDVDPSOLQJVFKHGXOHIRUWKHFULWLFDO
SDUDPHWHUVDQGFRQWUROSRLQWVIRUWKHVHSDUDPHWHUV
,GHQWLILFDWLRQRIWKHSURFHGXUHVXVHGWRTXDQWLI\\SDUDPHWHUV
WKDWDUHFULWLFDOWRFRQWUROSRLQWV
,GHQWLILFDWLRQRISURFHVVVDPSOLQJSRLQWV
$SURFHGXUHIRUWKHUHFRUGLQJDQGPDQDJHPHQWRIGDWD
3URFHGXUHVGHILQLQJFRUUHFWLYHDFWLRQVIRURII
FRQWUROSRLQWFKHPLVWU\\FRQGLWLRQVDQG
)DUOH\\8QLW
5HQHZHG/LFHQVH1R13)
$PHQGPHQW1R
$ODEDPD3RZHU&RPSDQ\\SXUVXDQWWR6HFWLRQRIWKH$FWDQG
&)53DUW/LFHQVLQJRI3URGXFWLRQDQG8WLOL]DWLRQ)DFLOLWLHVWR
SRVVHVVEXWQRWRSHUDWHWKHIDFLOLW\\DWWKHGHVLJQDWHGORFDWLRQLQ+RXVWRQ
&RXQW\\$ODEDPDLQDFFRUGDQFHZLWKWKHSURFHGXUHVDQGOLPLWDWLRQVVHW
IRUWKLQWKLVUHQHZHGOLFHQVH
6RXWKHUQ1XFOHDUSXUVXDQWWRWKH$FWDQG&)53DUWWRUHFHLYH
SRVVHVVDQGXVHDWDQ\\WLPHVSHFLDOQXFOHDUPDWHULDODVUHDFWRUIXHOLQ
DFFRUGDQFHZLWKWKHOLPLWDWLRQVIRUVWRUDJHDQGDPRXQWVUHTXLUHGIRU
UHDFWRURSHUDWLRQDVGHVFULEHGLQWKH)LQDO6DIHW\\$QDO\\VLV5HSRUWDV
VXSSOHPHQWHGDQGDPHQGHG
6RXWKHUQ1XFOHDUSXUVXDQWWRWKH$FWDQG&)53DUWVDQG
WRUHFHLYHSRVVHVVDQGXVHDWDQ\\WLPHDQ\\E\\SURGXFWVRXUFHDQG
VSHFLDOQXFOHDUPDWHULDODVVHDOHGQHXWURQVRXUFHVIRUUHDFWRUVWDUWXS
VHDOHGVRXUFHVIRUUHDFWRULQVWUXPHQWDWLRQDQGUDGLDWLRQPRQLWRULQJ
HTXLSPHQWFDOLEUDWLRQDQGDVILVVLRQGHWHFWRUVLQDPRXQWVDVUHTXLUHG
6RXWKHUQ1XFOHDUSXUVXDQWWRWKH$FWDQG&)53DUWVDQGWR
UHFHLYHSRVVHVVDQGXVHLQDPRXQWVDVUHTXLUHGDQ\\E\\SURGXFWVRXUFH
RUVSHFLDOQXFOHDUPDWHULDOZLWKRXWUHVWULFWLRQWRFKHPLFDORUSK\\VLFDOIRUP
IRUVDPSOHDQDO\\VLVRULQVWUXPHQWFDOLEUDWLRQRUDVVRFLDWHGZLWKUDGLRDFWLYH
DSSDUDWXVRUFRPSRQHQWVDQG
6RXWKHUQ1XFOHDUSXUVXDQWWRWKH$FWDQG&)53DUWVDQG
WRSRVVHVVEXWQRWVHSDUDWHVXFKE\\SURGXFWDQGVSHFLDOQXFOHDU
PDWHULDOVDVPD\\EHSURGXFHGE\\WKHRSHUDWLRQRIWKHIDFLOLW\\
&
7KLVUHQHZHGOLFHQVHVKDOOEHGHHPHGWRFRQWDLQDQGLVVXEMHFWWRWKHFRQGLWLRQV
VSHFLILHGLQWKH&RPPLVVLRQ VUHJXODWLRQVVHWIRUWKLQ&)5&KDSWHU,DQGLV
VXEMHFWWRDOODSSOLFDEOHSURYLVLRQVRIWKH$FWDQGWRWKHUXOHVUHJXODWLRQVDQG
RUGHUVRIWKH&RPPLVVLRQQRZRUKHUHDIWHULQHIIHFWDQGLVVXEMHFWWRWKH
DGGLWLRQDOFRQGLWLRQVVSHFLILHGRULQFRUSRUDWHGEHORZ
0D[LPXP3RZHU/HYHO
6RXWKHUQ1XFOHDULVDXWKRUL]HGWRRSHUDWHWKHIDFLOLW\\DWUHDFWRUFRUH
SRZHUOHYHOVQRWLQH[FHVVRIPHJDZDWWVWKHUPDO
7HFKQLFDO6SHFLILFDWLRQV
7KH7HFKQLFDO6SHFLILFDWLRQVFRQWDLQHGLQ$SSHQGL[$DVUHYLVHGWKURXJK
$PHQGPHQW1RDUHKHUHE\\LQFRUSRUDWHGLQWKHUHQHZHGOLFHQVH
6RXWKHUQ1XFOHDUVKDOORSHUDWHWKHIDFLOLW\\LQDFFRUGDQFHZLWKWKH7HFKQLFDO
6SHFLILFDWLRQV
'HOHWHGSHU$PHQGPHQW
'HOHWHGSHU$PHQGPHQW
'HOHWHGSHU$PHQGPHQW
TABLE OF CONTENTS Farley Units 1 and 2 ii Amendment No. 232 (Unit 1)
Amendment No. 229 (Unit 2) 3.4 REACTOR COOLANT SYSTEM (RCS).................................................. 3.4.1-1 3.4.1 RCS Pressure, Temperature, and Flow Departure from Nucleate Boiling (DNB) Limits................................................... 3.4.1-1 3.4.2 RCS Minimum Temperature for Criticality....................................... 3.4.2-1 3.4.3 RCS Pressure and Temperature (P/T) Limits.................................. 3.4.3-1 3.4.4 RCS Loops MODES 1 and 2....................................................... 3.4.4-1 3.4.5 RCS Loops MODE 3.................................................................... 3.4.5-1 3.4.6 RCS Loops MODE 4.................................................................... 3.4.6-1 3.4.7 RCS Loops MODE 5, Loops Filled.............................................. 3.4.7-1 3.4.8 RCS Loops MODE 5, Loops Not Filled........................................ 3.4.8-1 3.4.9 Pressurizer...................................................................................... 3.4.9-1 3.4.10 Pressurizer Safety Valves............................................................... 3.4.10-1 3.4.11 Pressurizer Power Operated Relief Valves (PORVs)...................... 3.4.11-1 3.4.12 Low Temperature Overpressure Protection (LTOP) System........... 3.4.12-1 3.4.13 RCS Operational LEAKAGE............................................................ 3.4.13-1 3.4.14 RCS Pressure Isolation Valve (PIV) Leakage................................. 3.4.14-1 3.4.15 RCS Leakage Detection Instrumentation........................................ 3.4.15-1 3.4.16 RCS Specific Activity....................................................................... 3.4.16-1 3.4.17 Steam Generator (SG) Tube Integrity.............................................. 3.4.17-1 3.5 EMERGENCY CORE COOLING SYSTEMS (ECCS)............................. 3.5.1-1 3.5.1 Accumulators................................................................................... 3.5.1-1 3.5.2 ECCS Operating.......................................................................... 3.5.2-1 3.5.3 ECCS Shutdown.......................................................................... 3.5.3-1 3.5.4 Refueling Water Storage Tank (RWST).......................................... 3.5.4-1 3.5.5 Seal Injection Flow.......................................................................... 3.5.5-1 3.5.6 ECCS Recirculation Fluid pH Control System................................. 3.5.6-1 3.6 CONTAINMENT SYSTEMS.................................................................... 3.6.1-1 3.6.1 Containment.................................................................................... 3.6.1-1 3.6.2 Containment Air Locks.................................................................... 3.6.2-1 3.6.3 Containment Isolation Valves.......................................................... 3.6.3-1 3.6.4 Containment Pressure..................................................................... 3.6.4-1 3.6.5 Containment Air Temperature......................................................... 3.6.5-1 3.6.6 Containment Spray and Cooling Systems....................................... 3.6.6-1 3.6.7 Hydrogen Recombiners................................................................... 3.6.7-1 3.6.8 Hydrogen Mixing System (HMS)..................................................... 3.6.8-1 3.6.9 Reactor Cavity Hydrogen Dilution System....................................... 3.6.9-1 3.6.10 Containment Sump.......................................................................... 3.6.10-1 3.7 PLANT SYSTEMS................................................................................... 3.7.1-1 3.7.1 Main Steam Safety Valves (MSSVs)............................................... 3.7.1-1 3.7.2 Main Steam Isolation Valves (MSIVs)............................................. 3.7.2-1
ECCS Operating 3.5.2 Farley Units 1 and 2 3.5.2-3 Amendment No. 232 (Unit 1)
Amendment No. 229 (Unit 2)
SURVEILLANCE REQUIREMENTS SURVEILLANCE FREQUENCY SR 3.5.2.5 Verify each ECCS pump starts automatically on an actual or simulated actuation signal.
In accordance with the Surveillance Frequency Control Program SR 3.5.2.6 Verify, for each ECCS throttle valve listed below, each position stop is in the correct position.
Valve Number CVC-V-8991 A/B/C CVC-V-8989 A/B/C CVC-V-8996 A/B/C CVC-V-8994 A/B/C RHR-HV 603 A/B In accordance with the Surveillance Frequency Control Program SR 3.5.2.7 Deleted.
SR 3.5.2.8 Verify ECCS locations susceptible to gas accumulation are sufficiently filled with water.
In accordance with the Surveillance Frequency Control Program
ECCS Shutdown 3.5.3 Farley Units 1 and 2 3.5.3-2 Amendment No. 232 (Unit 1)
Amendment No. 229 (Unit 2)
ACTIONS CONDITION REQUIRED ACTION COMPLETION TIME C.
Required ECCS centrifugal charging subsystem inoperable.
C.1 Restore required ECCS centrifugal charging subsystem to OPERABLE status.
1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> D.
Required Action and associated Completion Time of Condition B or C not met.
AND At least one RHR subsystem OPERABLE.
D.1 Be in MODE 5.
24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> SURVEILLANCE REQUIREMENTS SURVEILLANCE FREQUENCY SR 3.5.3.1 The following SRs are applicable for all equipment required to be OPERABLE:
SR 3.5.2.2 SR 3.5.2.6 SR 3.5.2.3 SR 3.5.2.8 In accordance with applicable SRs
Containment Sump 3.6.10 Farley Units 1 and 2 3.6.10-1 Amendment No. 232 (Unit 1)
Amendment No. 229 (Unit 2) 3.6 CONTAINMENT SYSTEMS 3.6.10 Containment Sump LCO 3.6.10 The containment sump shall be OPERABLE.
APPLICABILITY:
MODES 1, 2, 3, and 4.
ACTIONS CONDITION REQUIRED ACTION COMPLETION TIME A.
Containment sump inoperable due to containment accident generated and transported debris exceeding analyzed limits.
A.1 Initiate action to mitigate containment accident generated and transported debris.
AND A.2 Perform SR 3.4.13.1.
AND A.3 Restore the containment sump to OPERABLE status.
Immediately Once per 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> 90 days
Containment Sump 3.6.10 Farley Units 1 and 2 3.6.10-2 Amendment No. 232 (Unit 1)
Amendment No. 229 (Unit 2)
ACTIONS CONDITION REQUIRED ACTION COMPLETION TIME B.
Containment sump inoperable for reasons other than Condition A.
B.1 Declare affected Emergency Core Cooing System train(s) inoperable.
AND B.2 Declare affected containment spray train(s) inoperable.
Immediately Immediately C.
Required Action and associated Completion Time of Condition A not met.
C.1 Be in MODE 3.
AND C.2 Be in MODE 5.
6 hours6.944444e-5 days <br />0.00167 hours <br />9.920635e-6 weeks <br />2.283e-6 months <br /> 36 hours SURVEILLANCE REQUIREMENTS SURVEILLANCE FREQUENCY SR 3.6.10.1 Verify, by visual inspection, the containment sump does not show structural damage, abnormal corrosion, or debris blockage.
In accordance with the Surveillance Frequency Control Program
(QFORVXUH
6$)(7<(9$/8$7,21%<7+(2)),&(2)18&/($55($&7255(*8/$7,21
5(/$7('72
$0(1'0(171272)$&,/,7<23(5$7,1*/,&(16(1213)
$1'
$0(1'0(171272)$&,/,7<23(5$7,1*/,&(16(1213)
6287+(5118&/($523(5$7,1*&203$1<
-26(3+0)$5/(<18&/($53/$1781,76$1'
'2&.(7126$1'
,1752'8&7,21
%\\DSSOLFDWLRQGDWHG0D\\$JHQF\\ZLGH'RFXPHQWV$FFHVVDQG0DQDJHPHQW6\\VWHP
$'$06$FFHVVLRQ1R0/$6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\61&WKH
OLFHQVHHVXEPLWWHGDOLFHQVHDPHQGPHQWUHTXHVW/$5IRU-RVHSK0)DUOH\\1XFOHDU3ODQW
)DUOH\\8QLWVDQG
7KHOLFHQVHHSURSRVHGWRDGGDQHZ7HFKQLFDO6SHFLILFDWLRQ76³&RQWDLQPHQW6XPS'
DQGUHORFDWHDQGPRGLI\\WKHFXUUHQWFRQWDLQPHQWVXPS6XUYHLOODQFH5HTXLUHPHQW65
LQ76³(&&6>(PHUJHQF\\&RUH&RROLQJ6\\VWHPV@+/-2SHUDWLQJ'WRWKHQHZSURSRVHG76
DV657KHOLFHQVHHDOVRSURSRVHGWRGHOHWHWKHUHIHUHQFHWR65
FXUUHQWO\\LQ65RI76³(&&66KXWGRZQ'
7KHSURSRVHGFKDQJHVDUHEDVHGRQ7HFKQLFDO6SHFLILFDWLRQV7DVN)RUFH767)7UDYHOHU
767)5HYLVLRQ³$GG&RQWDLQPHQW6XPS76WR$GGUHVV*6,>*HQHULF6DIHW\\,VVXH@
,VVXHV'767)GDWHG$XJXVW$'$06$FFHVVLRQ1R0/$%\\OHWWHU
GDWHG-XO\\$'$063DFNDJH$FFHVVLRQ1R0/$WKH861XFOHDU
5HJXODWRU\\&RPPLVVLRQ15&WKH&RPPLVVLRQLVVXHGDILQDOVDIHW\\HYDOXDWLRQ6(DSSURYLQJ
767)
61&SURSRVHGVHYHUDOYDULDWLRQVIURPWKH76FKDQJHVGHVFULEHGLQ767)7KHYDULDWLRQV
DUHGHVFULEHGLQ6HFWLRQDQGHYDOXDWHGLQ6HFWLRQRIWKLV6(
5(*8/$725<(9$/8$7,21
6\\VWHP'HVFULSWLRQ
7KHFRQWDLQPHQWV\\VWHPLQFRQMXQFWLRQZLWKHQJLQHHUHGVDIHW\\IHDWXUHVLVGHVLJQHGWR
ZLWKVWDQGWKHLQWHUQDOSUHVVXUHDQGFRLQFLGHQWWHPSHUDWXUHUHVXOWLQJIURPWKHHQHUJ\\UHOHDVHRI
DORVVRIFRRODQWDFFLGHQW/2&$
7KHIXQFWLRQRIWKHFRQWDLQPHQWVSUD\\V\\VWHPLVWRVSUD\\ZDWHULQWRWKHFRQWDLQPHQW
DWPRVSKHUHZKHQDSSURSULDWHLQWKHHYHQWRID/2&$WRHQVXUHWKDWFRQWDLQPHQWSHDN
SUHVVXUHLVPDLQWDLQHGEHORZLWVGHVLJQYDOXH
7KH(&&6LQMHFWVERUDWHGZDWHULQWRWKHUHDFWRUFRRODQWV\\VWHPIROORZLQJD/2&$7KLV
SURYLGHVFRROLQJWROLPLWFRUHGDPDJHDQGILVVLRQSURGXFWUHOHDVHDQGDVVXUHVDQDGHTXDWH
VKXWGRZQPDUJLQUHJDUGOHVVRIWHPSHUDWXUH7KH(&&6DOVRSURYLGHVFRQWLQXRXVORQJWHUP
SRVWDFFLGHQWFRROLQJRIWKHFRUHE\\UHFLUFXODWLQJERUDWHGZDWHUEHWZHHQWKHFRQWDLQPHQWVXPS
DQGWKHUHDFWRUFRUH
7KHFRQWDLQPHQWVXPSLVDFROOHFWLQJUHVHUYRLUGHVLJQHGWRSURYLGHDQDGHTXDWHVXSSO\\RI
ZDWHUZLWKDPLQLPXPDPRXQWRISDUWLFXODWHPDWWHUWRWKHFRQWDLQPHQWVSUD\\V\\VWHP&66
DQGWKHUHVLGXDOKHDWUHPRYDOV\\VWHP
76³(&&62SHUDWLQJ'
7KHIXQFWLRQRIWKH(&&6LVWRSURYLGHFRUHFRROLQJDQGQHJDWLYHUHDFWLYLW\\WRHQVXUHWKHUHDFWRU
FRUHLVSURWHFWHGDIWHUDQ\\RIWKHIROORZLQJDFFLGHQWV
D $/2&$FRRODQWOHDNDJHJUHDWHUWKDQWKHFDSDELOLW\\RIWKHQRUPDOFKDUJLQJV\\VWHP
E 5RGHMHFWLRQDFFLGHQW
F /RVVRIVHFRQGDU\\FRRODQWDFFLGHQWLQFOXGLQJXQFRQWUROOHGVWHDPUHOHDVHRUORVVRI
IHHGZDWHUDQG
G 6WHDPJHQHUDWRUWXEHUXSWXUH
7HFKQLFDO6SHFLILFDWLRQLVDSSOLFDEOHLQ0RGHVDQGDQGUHTXLUHVWKDWWZR
LQGHSHQGHQW(&&6WUDLQVEHRSHUDEOHWRHQVXUHWKDWVXIILFLHQW(&&6IORZLVDYDLODEOH
DVVXPLQJDVLQJOHIDLOXUHDIIHFWLQJHLWKHUWUDLQ
7HFKQLFDO6SHFLILFDWLRQKHOSVHQVXUHWKHIROORZLQJDFFHSWDQFHFULWHULDIRU(&&6
HVWDEOLVKHGE\\7LWOHRIWKHCode of Federal Regulations&)5ZLOOEHPHWIROORZLQJ
D/2&$
D 0D[LPXPIXHOHOHPHQWFODGGLQJWHPSHUDWXUHLVOHVVWKDQRUHTXDOWRGHJUHHV
)DKUHQKHLW)
E 0D[LPXPFODGGLQJR[LGDWLRQLVWLPHVWKHWRWDOFODGGLQJWKLFNQHVVEHIRUH
R[LGDWLRQ
F 0D[LPXPK\\GURJHQJHQHUDWLRQIURPD]LUFRQLXPZDWHUUHDFWLRQLVWLPHVWKH
K\\SRWKHWLFDODPRXQWJHQHUDWHGLIDOORIWKHPHWDOLQWKHFODGGLQJF\\OLQGHUVVXUURXQGLQJ
WKHIXHOH[FOXGLQJWKHFODGGLQJVXUURXQGLQJWKHSOHQXPYROXPHZHUHWRUHDFW
G &RUHLVPDLQWDLQHGLQDFRRODEOHJHRPHWU\\DQG
H $GHTXDWHORQJWHUPFRUHFRROLQJFDSDELOLW\\LVPDLQWDLQHG
7HFKQLFDO6SHFLILFDWLRQDOVROLPLWVWKHSRWHQWLDOIRUDSRVWWULSUHWXUQWRSRZHUIROORZLQJD
PDLQVWHDPOLQHEUHDNHYHQWDQGHQVXUHVWKDWFRQWDLQPHQWWHPSHUDWXUHOLPLWVDUHPHW
76³(&&66KXWGRZQ'
7HFKQLFDO6SHFLILFDWLRQLVDSSOLFDEOHLVDSSOLFDEOHLQ0RGHDQGUHTXLUHVRQHRIWKHWZR
LQGHSHQGHQWDQGUHGXQGDQW(&&6WUDLQVWREHRSHUDEOHWRHQVXUHWKDWVXIILFLHQW(&&6IORZLV
DYDLODEOHWRWKHFRUHIROORZLQJDGHVLJQEDVLVDFFLGHQW
3URSRVHG&KDQJHVWRWKH7HFKQLFDO6SHFLILFDWLRQV
7KHSURSRVHGFKDQJHVZRXOGUHYLVH65VLQ76³(&&62SHUDWLQJ'DQG76³(&&6
+/-6KXWGRZQ'DQGDGGDQHZ76³&RQWDLQPHQW6XPS'WR76³&RQWDLQPHQW6\\VWHPV'
7KHSURSRVHGFKDQJHVDUHGHVFULEHGEHORZ
3URSRVHG&KDQJHVWR76³(&&62SHUDWLQJ'
7HFKQLFDO6SHFLILFDWLRQFXUUHQWO\\FRQWDLQV65ZKLFKUHTXLUHVWKHIROORZLQJDWD
IUHTXHQF\\LQDFFRUGDQFHZLWKWKH6XUYHLOODQFH)UHTXHQF\\&RQWURO3URJUDP6)&3
9HULI\\E\\YLVXDOLQVSHFWLRQHDFK(&&6WUDLQFRQWDLQPHQWVXPSVXFWLRQLQOHWLV
QRWUHVWULFWHGE\\GHEULVDQGWKHVXFWLRQLQOHWWUDVKUDFNVVFUHHQVDQGLQQHU
FDJHVDUHSURSHUO\\LQVWDOOHGDQGVKRZQRHYLGHQFHRIVWUXFWXUDOGLVWUHVVRU
DEQRUPDOFRUURVLRQ
7KHOLFHQVHHSURSRVHGWRPRYH65WRQHZ76DV65DQGPRGLI\\WR
VWDWH
9HULI\\E\\YLVXDOLQVSHFWLRQWKHFRQWDLQPHQWVXPSGRHVQRWVKRZVWUXFWXUDOGDPDJH
DEQRUPDOFRUURVLRQRUGHEULVEORFNDJH
7KLVFKDQJHLVHYDOXDWHGLQ6HFWLRQRIWKLV6(
3URSRVHG&KDQJHWR76³(&&66KXWGRZQ
7HFKQLFDO6SHFLILFDWLRQFXUUHQWO\\FRQWDLQV65ZKLFKUHIHUVWRDSSOLFDEOH65V
XQGHU762QHRIWKRVHUHIHUHQFHG65VLV65DVGHVFULEHGLQ6HFWLRQRI
WKLV6(
%HFDXVHWKHOLFHQVHHSURSRVHGWRPRYH65IURP76WRQHZ76DV65
WKHOLFHQVHHSURSRVHGWRGHOHWHWKHUHIHUHQFHWR65LQ65
7KLVFKDQJHLVHYDOXDWHGLQ6HFWLRQRIWKLV6(
3URSRVHG$GGLWLRQRID1HZ76³&RQWDLQPHQW6XPS'
7KHOLFHQVHHSURSRVHGWRDGG76UHTXLULQJWKHFRQWDLQPHQWVXPSWREHRSHUDEOHGXULQJ
0RGHVDQG
&RQGLWLRQ$VSHFLILHVWKDWLIWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHGXHWRFRQWDLQPHQWDFFLGHQW
JHQHUDWHGDQGWUDQVSRUWHGGHEULVH[FHHGLQJWKHDQDO\\]HGOLPLWVWKHQ5HTXLUHG$FWLRQV$
$DQG$UHTXLUHWKHLPPHGLDWHLQLWLDWLRQRIDFWLRQWRPLWLJDWHFRQWDLQPHQWDFFLGHQW
JHQHUDWHGDQGWUDQVSRUWHGGHEULVSHUIRUPDQFHRI65RQFHSHUKRXUVDQG
UHVWRUDWLRQRIWKHFRQWDLQPHQWVXPSWRRSHUDEOHVWDWXVZLWKLQGD\\VUHVSHFWLYHO\\7KH
65UHTXLUHVYHULILFDWLRQWKDWWKHUHDFWRUFRRODQWV\\VWHP5&6RSHUDWLRQDOOHDNDJHLV
ZLWKLQOLPLWVE\\SHUIRUPDQFHRI5&6ZDWHULQYHQWRU\\EDODQFH
&RQGLWLRQ%VSHFLILHVWKDWLIWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHIRUUHDVRQVRWKHUWKDQ
&RQGLWLRQ$WKHQ5HTXLUHG$FWLRQ%DQG%UHTXLUHLPPHGLDWHGHFODUDWLRQRIWKHDIIHFWHG
(&&6WUDLQVDVLQRSHUDEOHDQGLPPHGLDWHGHFODUDWLRQRIWKHDIIHFWHGFRQWDLQPHQWVSUD\\
WUDLQVDVLQRSHUDEOHUHVSHFWLYHO\\
&RQGLWLRQ&VSHFLILHVWKDWLIWKH5HTXLUHG$FWLRQDQGDVVRFLDWHG&RPSOHWLRQ7LPH&7RI
&RQGLWLRQ$LVQRWPHWWKHQ5HTXLUHG$FWLRQV&DQG&UHTXLUHWKHRSHUDWLQJXQLWEHSODFHG
LQ0RGHZLWKLQKRXUVDQG0RGHZLWKLQKRXUVUHVSHFWLYHO\\
7KHOLFHQVHHSURSRVHGWRPRGLI\\DQGPRYH65FXUUHQWO\\ORFDWHGLQ76DQG
76WRQHZ76DV657KHQHZ65UHTXLUHVWKHOLFHQVHHWRYHULI\\
E\\YLVXDOLQVSHFWLRQWKHFRQWDLQPHQWVXPSGRHVQRWVKRZVWUXFWXUDOGDPDJHDEQRUPDO
FRUURVLRQRUGHEULVEORFNDJHLQDFFRUGDQFHZLWKWKH6)&3
7KHOLFHQVHHDOVRSURSRVHGDFRQIRUPLQJFKDQJHWRWKH767DEOHRI&RQWHQWVWRUHIOHFWWKH
DGGLWLRQRIWKHQHZ76
7KLVSURSRVHGFKDQJHLVHYDOXDWHGLQ6HFWLRQRIWKLV6(
3URSRVHG9DULDWLRQVIURP767)
7KHOLFHQVHHVWDWHGLQSDUWWKHIROORZLQJYDULDWLRQVIURP767)
7KHUHTXLUHGDFWLRQDQG1RWHVRISURSRVHG&RQGLWLRQ%LQ767)DUHUHYLVHGWR
UHTXLUHGHFODULQJWKHDIIHFWHG(&&6DQG&66WUDLQVLQRSHUDEOHLPPHGLDWHO\\LQVWHDG
RIDUHTXLUHPHQWWRUHVWRUHWKHFRQWDLQPHQWVXPSWRRSHUDEOHVWDWXVZLWKLQDVSHFLILF
FRPSOHWLRQWLPHDQGWZRQRWHVUHTXLULQJHQWU\\LQWRWKHDVVRFLDWHG(&&6DQG&66
76DFWLRQV,QDGGLWLRQ&RQGLWLRQ&LVUHYLVHGWRVWDWH5HTXLUHG$FWLRQDQG
DVVRFLDWHG&RPSOHWLRQ7LPHRI&RQGLWLRQ$QRWPHWVLQFHWKHSURSRVHGUHTXLUHG
DFWLRQVRI&RQGLWLRQ%WRGHFODUHDIIHFWHGWUDLQVLQRSHUDEOHDUHLPPHGLDWHDQGFDQ
HDVLO\\EHDFFRPSOLVKHGUHQGHULQJ&RQGLWLRQ&XQQHFHVVDU\\
7KHOLFHQVHHVWDWHG³7KLVSODQWVSHFLILFYDULDWLRQLVFRQVLGHUHGDGPLQLVWUDWLYHVLQFHWKH
SURSRVHGUHTXLUHPHQWVZLOOUHVXOWLQHTXLYDOHQWDFWLRQWDNHQIRUWKHFRQGLWLRQDQGWKHUHIRUH
GRHVQRWDIIHFWWKHDSSOLFDELOLW\\RI767)RUWKH15&VWDII VVDIHW\\HYDOXDWLRQWRWKH
SURSRVHGOLFHQVHDPHQGPHQW'
7KHOLFHQVHHDOVRVWDWHGWKDWSURSRVHGIUHTXHQF\\RI65DV,QDFFRUGDQFHZLWKWKH
6XUYHLOODQFH)UHTXHQF\\&RQWURO3URJUDPLVDYDULDWLRQIURP767)
7KHSURSRVHGYDULDWLRQVDUHHYDOXDWHGLQ6HFWLRQRIWKLV6(
$SSOLFDEOH5HJXODWRU\\5HTXLUHPHQWVDQG*XLGDQFH
5HJXODWRU\\5HTXLUHPHQWV
7LWOHRIWKHCode of Federal Regulations&)56HFWLRQDUHTXLUHVHDFK
DSSOLFDQWIRUDOLFHQVHDXWKRUL]LQJRSHUDWLRQRIDXWLOL]DWLRQIDFLOLW\\WRLQFOXGHSURSRVHG76VLQWKH
DSSOLFDWLRQ7KDWUHJXODWLRQDOVRVWDWHVLQSDUWWKDW³>D@VXPPDU\\VWDWHPHQWRIWKHEDVHVRU
UHDVRQVIRUVXFKVSHFLILFDWLRQVRWKHUWKDQWKRVHFRYHULQJDGPLQLVWUDWLYHFRQWUROVVKDOODOVREH
LQFOXGHGLQWKHDSSOLFDWLRQEXWVKDOOQRWEHFRPHSDUWRIWKHWHFKQLFDOVSHFLILFDWLRQV'
7KHUHJXODWLRQDW&)5E³Technical specifications'UHTXLUHV
(DFKOLFHQVHDXWKRUL]LQJRSHUDWLRQRID<<XWLOL]DWLRQIDFLOLW\\<<ZLOOLQFOXGH
<<WHFKQLFDOVSHFLILFDWLRQV7KHWHFKQLFDOVSHFLILFDWLRQVZLOOEHGHULYHGIURPWKH
DQDO\\VHVDQGHYDOXDWLRQLQFOXGHGLQWKHVDIHW\\DQDO\\VLVUHSRUWDQGDPHQGPHQWV
WKHUHWRVXEPLWWHGSXUVXDQWWR>&)5@>³&RQWHQWVRIDSSOLFDWLRQV
WHFKQLFDOLQIRUPDWLRQ'@7KH&RPPLVVLRQPD\\LQFOXGHVXFKDGGLWLRQDOWHFKQLFDO
VSHFLILFDWLRQVDVWKH&RPPLVVLRQILQGVDSSURSULDWH
7KHFDWHJRULHVRILWHPVUHTXLUHGWREHLQWKH76VDUHSURYLGHGLQ&)5F$VUHTXLUHG
E\\&)5FLWKH76VZLOOLQFOXGH/&2VZKLFKDUHWKHORZHVWIXQFWLRQDOFDSDELOLW\\
RUSHUIRUPDQFHOHYHOVRIHTXLSPHQWUHTXLUHGIRUVDIHRSHUDWLRQRIWKHIDFLOLW\\7KHUHJXODWLRQDW
&)5FLUHTXLUHVWKDWZKHQDQ/&2RIDQXFOHDUUHDFWRULVQRWPHWWKHOLFHQVHH
VKDOOVKXWGRZQWKHUHDFWRURUIROORZDQ\\UHPHGLDODFWLRQSHUPLWWHGE\\WKH76VXQWLOWKHFRQGLWLRQ
FDQEHPHW
7KHUHJXODWLRQDW&)5FUHTXLUHV76VWRLQFOXGH65VZKLFKDUHUHTXLUHPHQWV
UHODWLQJWRWHVWFDOLEUDWLRQRULQVSHFWLRQWRDVVXUHWKDWWKHQHFHVVDU\\TXDOLW\\RIV\\VWHPVDQG
FRPSRQHQWVLVPDLQWDLQHGWKDWIDFLOLW\\RSHUDWLRQZLOOEHZLWKLQVDIHW\\OLPLWVDQGWKDWWKH/&2V
ZLOOEHPHW
5HJXODWRU\\*XLGDQFH
7KHJXLGDQFHWKH15&VWDIIFRQVLGHUHGLQLWVUHYLHZRIWKLV/$5LQFOXGHGWKHIROORZLQJ
185(*5HYLVLRQ³6WDQGDUG5HYLHZ3ODQIRUWKH5HYLHZRI6DIHW\\$QDO\\VLV5HSRUWV
IRU1XFOHDU3RZHU3ODQWV/:5>/LJKW:DWHU5HDFWRU@(GLWLRQ'&KDSWHU³7HFKQLFDO
6SHFLILFDWLRQV'GDWHG0DUFK$'$06$FFHVVLRQ1R0/SURYLGHV
JXLGDQFHRQUHYLHZRI76V
x
861XFOHDU5HJXODWRU\\&RPPLVVLRQ³6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV:HVWLQJKRXVH
3ODQWV'185(*9ROXPH³6SHFLILFDWLRQV'5HYLVLRQGDWHG$SULO$'$06
$FFHVVLRQ1R0/$
x
861XFOHDU5HJXODWRU\\&RPPLVVLRQ³)LQDO6DIHW\\(YDOXDWLRQVRI7HFKQLFDO6SHFLILFDWLRQV
7DVN)RUFH7UDYHOHU767)5HYLVLRQ³$GG&RQWDLQPHQW6XPS76WR$GGUHVV
- 6,,VVXHV'GDWHG-XO\\
7(&+1,&$/(9$/8$7,21
7KH15&VWDIIUHYLHZHGWKH/$5WRHQVXUHWKHSURSRVHGFKDQJHVDUHFRQVLVWHQWZLWK767)
DQGIRFXVHGRQDQ\\YDULDWLRQV7KH767)FDQEHDGRSWHGE\\SODQWVEDVHGRQWKHFXUUHQW
6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV676LH185(*)DUOH\\¶V76VDUHFRQVLVWHQWZLWK
185(*
3URSRVHG&KDQJHVWR76³(&&623(5$7,1*'
7KHOLFHQVHHSURSRVHGWRPRGLI\\DQGPRYH65IURP76WRQHZ76DV65
7KHUHIRUHWKHOLFHQVHHSURSRVHGGHOHWLRQRI65
7KHQHZ65GRHVQRWOLPLWWKHYLVXDOLQVSHFWLRQWRWKHVXFWLRQLQOHWWUDVKUDFNV
VFUHHQVDQGLQQHUFDJHVDVFXUUHQWO\\UHTXLUHGE\\WKH76VEXWLQVWHDGUHTXLUHVLQVSHFWLRQRIWKH
HQWLUHFRQWDLQPHQWVXPSV\\VWHP7KHFRQWDLQPHQWVXPSV\\VWHPFRQVLVWVRIWKHFRQWDLQPHQW
GUDLQDJHIORZSDWKVDQ\\GHVLJQIHDWXUHVXSVWUHDPRIWKHFRQWDLQPHQWVXPSWKDWDUHFUHGLWHGLQ
WKHFRQWDLQPHQWGHEULVDQDO\\VLVWKHFRQWDLQPHQWVXPSVWUDLQHUVRUVFUHHQVWKHSXPSVXFWLRQ
WUDVKUDFNVDQGWKHLQOHWWRWKH(&&6DQG&66SLSLQJ
7KH15&VWDIIFRQFOXGHGWKDWWKHSURSRVHGFKDQJHLVDFFHSWDEOHEHFDXVHWKHH[LVWLQJ
UHTXLUHPHQWVDUHHLWKHUXQFKDQJHGRUH[SDQGHGDQGFRQWLQXHWRHQVXUHWKHFRQWDLQPHQWVXPS
LVXQUHVWULFWHGLHXQREVWUXFWHGDQGVWD\\VLQSURSHURSHUDWLQJFRQGLWLRQ7KHSURSRVHG
FKDQJHPHHWVWKHUHTXLUHPHQWVRI&)5FEHFDXVHLWSURYLGHV65VWRDVVXUHWKH
QHFHVVDU\\TXDOLW\\RIV\\VWHPVDQGFRPSRQHQWVDUHPDLQWDLQHGWKDWIDFLOLW\\RSHUDWLRQZLOOEH
ZLWKLQVDIHW\\OLPLWVDQGWKDWWKH/&2VZLOOEHPHW
3URSRVHG&KDQJHWR76³(&&66+87'2:1'
7KHOLFHQVHHSURSRVHGWRGHOHWHWKHUHIHUHQFHWR65LQ65
7KH15&VWDIIFRQFOXGHGWKDWWKHSURSRVHGFKDQJHLVDFFHSWDEOHEHFDXVH65ZDV
PRGLILHGDQGUHORFDWHGWRQHZ76DV657KHH[LVWLQJ65RQWKHFRQWDLQPHQW
VXPSLVDXJPHQWHGE\\UHTXLULQJLQVSHFWLRQRIDGGLWLRQDOVXPSFRPSRQHQWVDQGPRYHGWRWKH
QHZVSHFLILFDWLRQDQGDGXSOLFDWLYHUHTXLUHPHQWWRSHUIRUPWKH65LQ76LVUHPRYHG7KH
QHZVSHFLILFDWLRQUHWDLQVRUH[SDQGVWKHH[LVWLQJUHTXLUHPHQWVRQWKHFRQWDLQPHQWVXPSDQG
WKHDFWLRQVWREHWDNHQZKHQWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHZLWKWKHH[FHSWLRQRIDGGLQJ
QHZDFWLRQVWREHWDNHQZKHQWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHGXHWRFRQWDLQPHQWDFFLGHQW
JHQHUDWHGDQGWUDQVSRUWHGGHEULVH[FHHGLQJWKHDQDO\\]HGOLPLWV7KHQHZDFWLRQSURYLGHVWLPH
WRHYDOXDWHDQGFRUUHFWWKHFRQGLWLRQLQVWHDGRIUHTXLULQJDQLPPHGLDWHSODQWVKXWGRZQ7KH
SURSRVHGFKDQJHPHHWVWKHUHTXLUHPHQWVRI&)5FEHFDXVHLWSURYLGHV65VWR
DVVXUHWKHQHFHVVDU\\TXDOLW\\RIV\\VWHPVDQGFRPSRQHQWVDUHPDLQWDLQHGWKDWIDFLOLW\\RSHUDWLRQ
ZLOOEHZLWKLQVDIHW\\OLPLWVDQGWKDWWKH/&2VZLOOEHPHW
3URSRVHG$GGLWLRQRI1HZ76³&RQWDLQPHQW6XPS'
(YDOXDWLRQRI/&2³7KHFRQWDLQPHQWVXPSVKDOOEH23(5$%/('
7KHOLFHQVHHSURSRVHGWRDGGDQHZ/&2WRDGGUHVVRSHUDELOLW\\UHTXLUHPHQWVRIWKH
FRQWDLQPHQWVXPS
7KHFRQWDLQPHQWVXPSVXSSRUWVWKHSRVWDFFLGHQWRSHUDWLRQRIWKH(&&6DQG&66+RZHYHU
RQO\\WKHFXUUHQW(&&676DQG76FRQWDLQ65VUHODWHGWRWKHFRQWDLQPHQWVXPSDQG
WKH76VGRQRWVSHFLI\\5HTXLUHG$FWLRQVWKDWVSHFLILFDOO\\DGGUHVVDQLQRSHUDEOHFRQWDLQPHQW
VXPS,IWKHFRQWDLQPHQWVXPSZHUHIRXQGWREHLQRSHUDEOHDVDQ(&&6DQG&66VXSSRUW
V\\VWHPWKRVHUHVSHFWLYH/&2VZRXOGQRWEHPHW,QRUGHUWRDGGUHVVFRQFHUQVUHODWHGZLWK
FRQWDLQPHQWVXPSRSHUDELOLW\\GXHWRGHEULVDFFXPXODWLRQGHVFULEHGLQ*6,³$VVHVVPHQWRI
'HEULV$FFXPXODWLRQRQ3UHVVXUL]HG:DWHU5HDFWRU6XPS3HUIRUPDQFH'WKHOLFHQVHHSURSRVHG
WRDGGDQHZ/&2WRDGGUHVVFRQWDLQPHQWVXPSLQRSHUDELOLW\\DQGFUHDWHDFRQGLWLRQIRU
ZKHQWKHVXPSLVLQRSHUDEOHGXHWRFRQWDLQPHQWDFFLGHQWJHQHUDWHGDQGWUDQVSRUWHGGHEULV
H[FHHGLQJDQDO\\]HGOLPLWV
%DVHGRQWKHEHORZHYDOXDWLRQWKH15&VWDIIGHWHUPLQHGWKDWWKHSURSRVHG/&2VDWLVILHVWKH
UHTXLUHPHQWVRI&)5FLEHFDXVHWKH/&2VSHFLILHVWKHORZHVWIXQFWLRQDO
FDSDELOLW\\RUSHUIRUPDQFHOHYHOVRIHTXLSPHQWUHTXLUHGIRUVDIHRSHUDWLRQRIWKHIDFLOLW\\7KHUHLV
UHDVRQDEOHDVVXUDQFHWKDWWKHUHTXLUHGDFWLRQVWREHWDNHQZKHQWKH/&2LVQRWPHWFDQEH
FRQGXFWHGZLWKRXWHQGDQJHULQJWKHKHDOWKDQGVDIHW\\RIWKHSXEOLF
(YDOXDWLRQRIWKH$SSOLFDELOLW\\RI/&2
7KHSURSRVHG/&2UHTXLUHVWKHFRQWDLQPHQWVXPSWREHRSHUDEOHGXULQJ0RGHV
DQG7KH(&&6/&2LVFXUUHQWO\\DSSOLFDEOHGXULQJ0RGHVDQG7KH(&&6/&2
LVFXUUHQWO\\DSSOLFDEOHGXULQJ0RGH7KH&66/&2LVFXUUHQWO\\DSSOLFDEOHGXULQJ
0RGHVDQG
7KH15&VWDIIILQGVWKHSURSRVHGDSSOLFDELOLW\\RI/&2LVDFFHSWDEOHEHFDXVHWKH
DSSOLFDELOLW\\LVFRQVLVWHQWZLWKWKHDSSOLFDELOLW\\RIWKH(&&6DQG&66/&2VWKHFRQWDLQPHQW
VXPSVXSSRUWHGV\\VWHPV
(YDOXDWLRQRI&RQGLWLRQ$
7KHOLFHQVHHKDVDQDO\\]HGWKHVXVFHSWLELOLW\\RIWKH(&&6DQG&66WRWKHDGYHUVHHIIHFWVRI
SRVWDFFLGHQWGHEULVEORFNDJHDQGRSHUDWLRQZLWKGHEULVODGHQIOXLGV7KHOLFHQVHHKDV
HVWDEOLVKHGOLPLWVRQWKHDOORZDEOHTXDQWLWLHVRIFRQWDLQPHQWDFFLGHQWJHQHUDWHGGHEULVWKDW
FRXOGEHWUDQVSRUWHGWRWKHFRQWDLQPHQWVXPSEDVHGRQLWVFXUUHQWSODQWFRQILJXUDWLRQ,QWKH
FXUUHQW76VLIXQDQDO\\]HGGHEULVVRXUFHVDUHGLVFRYHUHGLQVLGHFRQWDLQPHQWLIHUURUVDUH
GLVFRYHUHGLQGHEULVUHODWHGDQDO\\VHVRULIDSUHYLRXVO\\XQHYDOXDWHGSKHQRPHQRQWKDWFDQ
DIIHFWFRQWDLQPHQWVXPSSHUIRUPDQFHLVGLVFRYHUHGWKHFRQWDLQPHQWVXPSDQGWKHVXSSRUWHG
(&&6DQG&66PD\\EHLQRSHUDEOHDQGWKH76VZRXOGUHTXLUHDSODQWVKXWGRZQZLWKQRWLPH
SURYLGHGWRHYDOXDWHWKHFRQGLWLRQ
,QRUGHUWRDGGUHVVWKLVVLWXDWLRQDQGWRSURYLGHVXIILFLHQWWLPHWRHYDOXDWHWKHFRQGLWLRQWKH
OLFHQVHHSURSRVHG&RQGLWLRQ$ZKLFKLVDSSOLFDEOHZKHQWKHFRQWDLQPHQWVXPSLVLQRSHUDEOH
GXHWRFRQWDLQPHQWDFFLGHQWJHQHUDWHGDQGWUDQVSRUWHGGHEULVH[FHHGLQJWKHDQDO\\]HGOLPLWV
8QGHU&RQGLWLRQ$WKHRSHUDELOLW\\RIWKHFRQWDLQPHQWVXPSZLWKUHVSHFWWRGHEULVLVEDVHGRQD
TXDQWLW\\RIGHEULVHYDOXDWHGDQGGHWHUPLQHGWREHDFFHSWDEOHE\\WKHOLFHQVHH&RQGLWLRQVQRW
HYDOXDWHGXQGHU&RQGLWLRQ$FRQWDLQPHQWDFFLGHQWJHQHUDWHGDQGWUDQVSRUWHGGHEULVDQGWKDW
DIIHFWWKHTXDQWLW\\RIDQDO\\]HGGHEULVZLOOEHHYDOXDWHGXVLQJDGHWHUPLQLVWLFSURFHVV
&RQGLWLRQ$5HTXLUHG$FWLRQ$PDQGDWHVLPPHGLDWHDFWLRQWREHLQLWLDWHGWRPLWLJDWHWKH
FRQGLWLRQ,QLWVVXEPLWWDOWKHOLFHQVHHSURYLGHGWKHIROORZLQJH[DPSOHVRIPLWLJDWLQJDFWLRQV
x
5HPRYLQJWKHGHEULVVRXUFHIURPFRQWDLQPHQWRUSUHYHQWLQJWKHGHEULV
IURPEHLQJWUDQVSRUWHGWRWKHFRQWDLQPHQWVXPS
x
(YDOXDWLQJWKHGHEULVVRXUFHDJDLQVWWKHDVVXPSWLRQVLQWKHDQDO\\VLV
x
'HIHUULQJPDLQWHQDQFHWKDWZRXOGDIIHFWDYDLODELOLW\\RIWKHDIIHFWHG
V\\VWHPVDQGRWKHU/2&$PLWLJDWLQJHTXLSPHQW
x
'HIHUULQJPDLQWHQDQFHWKDWZRXOGDIIHFWDYDLODELOLW\\RISULPDU\\
GHIHQVHLQGHSWKV\\VWHPVVXFKDVFRQWDLQPHQWFRROHUV
x
%ULHILQJRSHUDWRUVRQ/2&$GHEULVPDQDJHPHQWDFWLRQVRU
x
$SSO\\LQJDQDOWHUQDWLYHPHWKRGWRHVWDEOLVKQHZOLPLWV
7KH15&VWDIIILQGVWKHSURSRVHG5HTXLUHG$FWLRQ$DQGLWV&RPSOHWLRQ7LPH&7DUH
DFFHSWDEOHEHFDXVHWKH\\SODFHXUJHQF\\RQWKHLQLWLDWLRQRIWKHDSSURSULDWHDFWLRQVWKDWFRXOG
PLWLJDWHRUUHGXFHWKHLPSDFWRIWKHLGHQWLILHGFRQGLWLRQV
&RQFXUUHQWO\\5HTXLUHG$FWLRQ$PDQGDWHV65WKH5&6ZDWHULQYHQWRU\\EDODQFHWR
EHSHUIRUPHGDWDQLQFUHDVHGIUHTXHQF\\RIRQFHSHUKRXUV$QXQH[SHFWHGLQFUHDVHLQ5&6
OHDNDJHFRXOGEHLQGLFDWLYHRIDQLQFUHDVHGSRWHQWLDOIRUDQ5&6SLSHEUHDNZKLFKFRXOGUHVXOW
LQGHEULVEHLQJJHQHUDWHGDQGWUDQVSRUWHGWRWKHFRQWDLQPHQWVXPS
7KH15&VWDIIILQGVWKHSURSRVHG5HTXLUHG$FWLRQ$DQGLWV&7DUHDFFHSWDEOHEHFDXVHWKH
PRUHIUHTXHQWPRQLWRULQJDOORZVRSHUDWRUVWRDFWLQDWLPHO\\IDVKLRQWRPLQLPL]HWKHSRWHQWLDOIRU
DQ5&6SLSHEUHDNZKLOHWKHFRQWDLQPHQWVXPSLVLQRSHUDEOH
,QDGGLWLRQ5HTXLUHG$FWLRQ$UHTXLUHVWKHLQRSHUDEOHFRQWDLQPHQWVXPSWREHUHVWRUHGWR
RSHUDEOHVWDWXVLQGD\\V
7KH15&VWDIIILQGVWKHSURSRVHG5HTXLUHG$FWLRQ$DQGLWV&7DUHDFFHSWDEOHEHFDXVHWKH\\
SURYLGHDUHDVRQDEOHDPRXQWRIWLPHWRGLDJQRVHSODQDQGSRVVLEO\\UHGXFHWKHVHYHULW\\RIRU
PLWLJDWHWKHXQDQDO\\]HGGHEULVFRQGLWLRQDQGSUHYHQWDORVVRI(&&6DQG&66VDIHW\\IXQFWLRQ
,QDGGLWLRQGD\\VLVDGHTXDWHJLYHQWKHFRQVHUYDWLVPVLQWKHFRQWDLQPHQWGHEULVDQDO\\VLVDQG
WKHSURSRVHGFRPSHQVDWRU\\DFWLRQVUHTXLUHGWREHLPSOHPHQWHGLPPHGLDWHO\\E\\5HTXLUHG
$FWLRQ$$OVRDVGLVFXVVHGODWHULQWKLV6(VHFWLRQWKHQHZ65ZLOOUHTXLUHYLVXDOLQVSHFWLRQ
RIWKHFRQWDLQPHQWVXPSV\\VWHPLQFOXGLQJWKHFRQWDLQPHQWGUDLQDJHIORZSDWKVDQ\\GHVLJQ
IHDWXUHVXSVWUHDPRIWKHFRQWDLQPHQWVXPSWKDWDUHFUHGLWHGLQWKHFRQWDLQPHQWGHEULVDQDO\\VLV
WKHFRQWDLQPHQWVXPSVWUDLQHUVWKHSXPSVXFWLRQWUDVKUDFNVDQGWKHLQOHWWRWKH(&&6DQG
&66SLSLQJIRUHYLGHQFHRIVWUXFWXUDOGHJUDGDWLRQSRWHQWLDOIRUGHEULVE\\SDVVDQGSUHVHQFHRI
FRUURVLRQRUGHEULVEORFNDJHWRHQVXUHQRORRVHGHEULVLVSUHVHQWDQGWKHUHLVQRHYLGHQFHRI
VWUXFWXUDOGLVWUHVVRUDEQRUPDOFRUURVLRQ
(YDOXDWLRQRI&RQGLWLRQ%
&RQGLWLRQ%VSHFLILHVWKHUHTXLUHGDFWLRQVIRUZKHQWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHIRU
UHDVRQVRWKHUWKDQFRQWDLQPHQWDFFLGHQWJHQHUDWHGDQGWUDQVSRUWHGGHEULVH[FHHGLQJWKH
DQDO\\]HGOLPLWV&RQGLWLRQ$
5HTXLUHG$FWLRQ%DQG%UHTXLUHWKDWLIWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHIRUUHDVRQV
RWKHUWKDQ&RQGLWLRQ$RSHUDWRUVWDNHLPPHGLDWHDFWLRQWRGHFODUHDIIHFWHG(&&6WUDLQVDQG
&66WUDLQVLQRSHUDEOH
7KH15&VWDIIILQGVWKHSURSRVHG&RQGLWLRQ%LVDFFHSWDEOHEHFDXVHLWFRQWLQXHVWRUHTXLUH
DFWLRQVIRUZKHQWKHFRQWDLQPHQWVXPSLVLQRSHUDEOHIRUUHDVRQVRWKHUWKDQ&RQGLWLRQ$DQG
HQVXUHVVDIHRSHUDWLRQRIWKHSODQW,QDGGLWLRQWKHSURSRVHG&7LVDFFHSWDEOHEHFDXVH
GHFODULQJWKHDIIHFWHG(&&6DQG&66WUDLQVLQRSHUDEOHLPPHGLDWHO\\ZLOOHQVXUHDSSURSULDWH
UHVWULFWLRQVDUHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKHUHTXLUHGDFWLRQVRIWKH(&&6DQG&66
76V
(YDOXDWLRQRI&RQGLWLRQ&
,IRSHUDWRUVDUHXQDEOHWRUHVWRUHWKHDIIHFWHGFRQWDLQPHQWVXPSWRRSHUDEOHVWDWXVXQGHU
&RQGLWLRQ$5HTXLUHG$FWLRQ&UHTXLUHVWKHXQLWWREHLQ0RGHLQKRXUVIROORZHGE\\
0RGHLQKRXUVDVUHTXLUHGE\\5HTXLUHG$FWLRQ&
7KH15&VWDIIILQGVWKLVSURSRVHGFRQGLWLRQDQGLWVUHTXLUHGDFWLRQVDUHDFFHSWDEOHEHFDXVHWKH
FRQGLWLRQUHTXLUHVWKHRSHUDWRUVWRSODFHWKHXQLWLQDFRQGLWLRQLQZKLFKWKH/&2QRORQJHU
DSSOLHV,QDGGLWLRQWKHSURSRVHG&7VDOORZDUHDVRQDEOHDPRXQWRIWLPHWRGHFUHDVHIURPIXOO
SRZHUFRQGLWLRQVWRWKHUHTXLUHGSODQWFRQGLWLRQVLQDQRUGHUO\\PDQQHUDQGZLWKRXWFKDOOHQJLQJ
SODQWV\\VWHPV
(YDOXDWLRQRIWKH1HZ65
7KH65ZDVPRGLILHGDQGUHORFDWHGWRQHZ76DV657KH65
ZDVRULJLQDOO\\ORFDWHGLQ76DQGUHIHUUHGWRLQ767KHIUHTXHQF\\RIWKHQHZ65LV
VSHFLILHGLQWKH6)&3
7KHSURSRVHG65UHTXLUHVYHULILFDWLRQE\\YLVXDOLQVSHFWLRQWKDWWKHFRQWDLQPHQWVXPS
GRHVQRWVKRZVWUXFWXUDOGDPDJHDEQRUPDOFRUURVLRQRUGHEULVEORFNDJH
7KHSURSRVHG65LVVWDWHGLQJHQHULFWHUPVDQGH[SDQGVWKHVFRSHRIWKHUHTXLUHG
YLVXDOLQVSHFWLRQWRLQFOXGHWKHHQWLUHFRQWDLQPHQWVXPSV\\VWHP7KHHQWLUHFRQWDLQPHQWVXPS
V\\VWHPFRQVLVWVRIWKHFRQWDLQPHQWGUDLQDJHIORZSDWKVWKHFRQWDLQPHQWVXPSVWUDLQHUVRU
VFUHHQVWKHSXPSVXFWLRQWUDVKUDFNVDQGWKHLQOHWWRWKH(&&6DQG&66SLSLQJ
7KH15&VWDIIILQGVWKHQHZSURSRVHG65DFFHSWDEOHVLQFHLWH[SDQGVWKHVFRSHRILQVSHFWLRQ
RIWKHRULJLQDO65,QDGGLWLRQWKHSURSRVHGIUHTXHQF\\LVDFFHSWDEOHVLQFHLWLVWKHVDPHDV
FXUUHQWO\\UHTXLUHGE\\WKH76V7KHUHIRUHWKH15&VWDIIILQGVWKDWDVUHTXLUHGE\\&)5
FWKHQHFHVVDU\\TXDOLW\\RIV\\VWHPVZLOOEHPDLQWDLQHGLQDFFRUGDQFHZLWKWKH
DVVRFLDWHG/&2V
(YDOXDWLRQRI&KDQJHVWR7DEOHRI&RQWHQWV
7KHOLFHQVHHSURSRVHGDFRQIRUPLQJFKDQJHWRWKH7DEOHRI&RQWHQWVWRLQFOXGHWKHQHZ
FRQWDLQPHQWVXPS767KLVFRQIRUPLQJFKDQJHLVDFFHSWDEOHVLQFHLWLVDQHGLWRULDOFKDQJHWR
VXSSRUWWKHLQFOXVLRQRIWKHQHZFRQWDLQPHQWVXPS76
15&6WDII&RQFOXVLRQ5HJDUGLQJ1HZ76
7KHQHZ76UHWDLQVDQGH[SDQGVWKHH[LVWLQJ76UHTXLUHPHQWVZLWKWKHH[FHSWLRQRIWKH
DGGLWLRQRI&RQGLWLRQ$&RQGLWLRQ$SURYLGHVDFRQGLWLRQIRUDQLQRSHUDEOHFRQWDLQPHQWVXPS
GXHWRFRQWDLQPHQWDFFLGHQWJHQHUDWHGDQGWUDQVSRUWHGGHEULVH[FHHGLQJWKHDQDO\\]HGOLPLWV
7KH15&VWDIIUHYLHZHGWKHSURSRVHGFKDQJHVDJDLQVWWKHUHJXODWLRQVDQGFRQFOXGHVWKH
FKDQJHVFRQWLQXHWRPHHWWKHUHTXLUHPHQWVRI&)5FLDQGFIRUWKH
UHDVRQVGLVFXVVHGDERYHDQGWKXVSURYLGHUHDVRQDEOHDVVXUDQFHWKDWDGRSWLRQRIWKHVH76V
ZLOOKDYHWKHUHTXLVLWHUHTXLUHPHQWVDQGFRQWUROVWRRSHUDWHVDIHO\\7KHUHIRUHWKH15&VWDII
FRQFOXGHVWKDWWKHSURSRVHG76FKDQJHVDUHDFFHSWDEOH
9DULDWLRQVIURP767)
7KHOLFHQVHH¶VSURSRVHGYDULDWLRQVIURP767)
65)UHTXHQF\\
7KHIUHTXHQF\\RIQHZSURSRVHG65LV,QDFFRUGDQFHZLWKWKH6XUYHLOODQFH)UHTXHQF\\
&RQWURO3URJUDP7KH15&VWDIIILQGWKLVYDULDWLRQLVDFFHSWDEOHVLQFHWKHIUHTXHQF\\RIWKH65
UHPDLQVXQFKDQJHGIURPWKHFXUUHQWUHTXLUHPHQWLQ76DQG76DQGWKLVYDULDWLRQLV
LQFOXGHGDVDQRSWLRQLQ767)
/&2&RQGLWLRQ%
7KHSURSRVHG/&2&RQGLWLRQ%5HTXLUHG$FWLRQDQG&7LVDYDULDWLRQIURP767)
767)/&2&RQGLWLRQ%5HTXLUHG$FWLRQ%VWDWHV³5HVWRUHWKHFRQWDLQPHQWVXPS>V@WR
23(5$%/(VWDWXV'ZLWKD&7RI³KRXUVRU,QDFFRUGDQFHZLWKWKH5LVN,QIRUPHG&RPSOHWLRQ
7LPH3URJUDP'DQGLQFOXGHVWKHIROORZLQJWZR1RWHV
(QWHUDSSOLFDEOH&RQGLWLRQVDQG5HTXLUHG$FWLRQVRI/&2(&&62SHUDWLQJ
DQG/&2(&&66KXWGRZQIRUHPHUJHQF\\FRUHFRROLQJWUDLQVPDGHLQRSHUDEOH
E\\WKHFRQWDLQPHQWVXPS>V@
(QWHUDSSOLFDEOH&RQGLWLRQVDQG5HTXLUHG$FWLRQVRI/&2>&RQWDLQPHQW6SUD\\
DQG&RROLQJ6\\VWHPV@IRU>FRQWDLQPHQWVSUD\\@WUDLQVPDGHLQRSHUDEOHE\\WKH
FRQWDLQPHQWVXPS>V@
7KHOLFHQVHHSURSRVHG/&25HTXLUHG$FWLRQ%DQG%UHTXLUHWKDWLIWKHFRQWDLQPHQW
VXPSLVLQRSHUDEOHIRUUHDVRQVRWKHUWKDQ&RQGLWLRQ$RSHUDWRUVWDNHLPPHGLDWHDFWLRQWR
GHFODUHDIIHFWHG(&&6WUDLQVDQG&66WUDLQVLQRSHUDEOHUHVSHFWLYHO\\
$VGLVFXVVHGLQ6HFWLRQRIWKLV6(WKH15&VWDIIILQGWKLVYDULDWLRQDFFHSWDEOHEHFDXVH
GHFODULQJWKHDIIHFWHG(&&6DQG&66WUDLQVLQRSHUDEOHLPPHGLDWHO\\ZLOOHQVXUHDSSURSULDWH
UHVWULFWLRQVDUHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKHUHTXLUHGDFWLRQVRIWKH(&&6DQG&66
76V
/&2&RQGLWLRQ&
7KHSURSRVHG/&2&RQGLWLRQ&LVDYDULDWLRQIURP767)&RQGLWLRQ&767)
&RQGLWLRQ&VWDWHV³5HTXLUHG$FWLRQDQGDVVRFLDWHG&RPSOHWLRQ7LPHQRWPHW'
7KHOLFHQVHHSURSRVHG/&2&RQGLWLRQ&WRDSSO\\RQO\\WR&RQGLWLRQ$DVVWDWHG
³5HTXLUHG$FWLRQDQGDVVRFLDWHG&RPSOHWLRQ7LPHRI&RQGLWLRQ$QRWPHW'
15&VWDIIILQGWKLVYDULDWLRQDFFHSWDEOHEHFDXVHWKHSURSRVHGYDULDWLRQLQ&RQGLWLRQ%WR
GHFODUHDIIHFWHGWUDLQVLQRSHUDEOH³LPPHGLDWHO\\'UHQGHUV&RQGLWLRQ&RQO\\QHFHVVDU\\WRDSSO\\WR
&RQGLWLRQ$
15&6WDII&RQFOXVLRQ
7KH15&VWDIIGHWHUPLQHGWKDWWKHSURSRVHG76FKDQJHVPHHWWKHVWDQGDUGVIRU76LQ&)5
DQGDUHDFFHSWDEOH$VUHTXLUHGE\\&)5FWKH/&2VVSHFLI\\WKH³ORZHVW
IXQFWLRQDOFDSDELOLW\\RUSHUIRUPDQFHOHYHOVRIHTXLSPHQWUHTXLUHGIRUVDIHRSHUDWLRQRIWKH
IDFLOLW\\'7KHSURSRVHGFKDQJHVWRWKH65VDVVXUHWKDWWKHQHFHVVDU\\TXDOLW\\RIV\\VWHPVDQG
FRPSRQHQWVLVPDLQWDLQHGWKDWIDFLOLW\\RSHUDWLRQZLOOEHZLWKLQVDIHW\\OLPLWVDQGWKDWWKH/&2V
ZLOOEHPHWDQGVDWLVI\\&)5F
67$7(&2168/7$7,21
,QDFFRUGDQFHZLWKWKH&RPPLVVLRQ VUHJXODWLRQVWKH$ODEDPD6WDWHRIILFLDOZDVQRWLILHGRIWKH
SURSRVHGLVVXDQFHRIWKHDPHQGPHQWVRQ2FWREHU2Q1RYHPEHUWKH6WDWH
RIILFLDOFRQILUPHGWKDWWKH6WDWHKDGQRFRPPHQWV
(19,5210(17$/&216,'(5$7,21
7KHDPHQGPHQWVFKDQJHUHTXLUHPHQWVZLWKUHVSHFWWRWKHLQVWDOODWLRQRUXVHRIIDFLOLW\\
FRPSRQHQWVORFDWHGZLWKLQWKHUHVWULFWHGDUHDDVGHILQHGLQ&)53DUWDQGFKDQJHV
VXUYHLOODQFHUHTXLUHPHQWV7KH15&VWDIIKDVGHWHUPLQHGWKDWWKHDPHQGPHQWVLQYROYHQR
VLJQLILFDQWLQFUHDVHLQWKHDPRXQWVDQGQRVLJQLILFDQWFKDQJHLQWKHW\\SHVRIDQ\\HIIOXHQWVWKDW
PD\\EHUHOHDVHGRIIVLWHDQGWKDWWKHUHLVQRVLJQLILFDQWLQFUHDVHLQLQGLYLGXDORUFXPXODWLYH
RFFXSDWLRQDOUDGLDWLRQH[SRVXUH7KH&RPPLVVLRQKDVSUHYLRXVO\\LVVXHGDSURSRVHGILQGLQJ
WKDWWKHDPHQGPHQWVLQYROYHQRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQSXEOLVKHGLQWKHFederal Register RQ-XO\\)5DQGWKHUHKDVEHHQQRSXEOLFFRPPHQWRQVXFK
ILQGLQJ$FFRUGLQJO\\WKHDPHQGPHQWVPHHWWKHHOLJLELOLW\\FULWHULDIRUFDWHJRULFDOH[FOXVLRQVHW
IRUWKLQ&)5F3XUVXDQWWR&)5EQRHQYLURQPHQWDOLPSDFWVWDWHPHQW
RUHQYLURQPHQWDODVVHVVPHQWQHHGEHSUHSDUHGLQFRQQHFWLRQZLWKWKHLVVXDQFHRIWKH
DPHQGPHQWV
&21&/86,21
7KH&RPPLVVLRQKDVFRQFOXGHGEDVHGRQWKHFRQVLGHUDWLRQVGLVFXVVHGDERYHWKDWWKHUH
LVUHDVRQDEOHDVVXUDQFHWKDWWKHKHDOWKDQGVDIHW\\RIWKHSXEOLFZLOOQRWEHHQGDQJHUHGE\\
RSHUDWLRQLQWKHSURSRVHGPDQQHUWKHUHLVUHDVRQDEOHDVVXUDQFHWKDWVXFKDFWLYLWLHVZLOOEH
FRQGXFWHGLQFRPSOLDQFHZLWKWKH&RPPLVVLRQ VUHJXODWLRQVDQGWKHLVVXDQFHRIWKH
DPHQGPHQWVZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQGVHFXULW\\RUWRWKHKHDOWKDQGVDIHW\\
RIWKHSXEOLF
3ULQFLSDO&RQWULEXWRUV &7LOWRQ155'66
'DWH'HFHPEHU
&*D\\KHDUW
68%-(&7
-26(3+0)$5/(<18&/($53/$1781,76$1'+/-,668$1&(2)
$0(1'0(17126$1'5(*$5',1*$'237,212)767)
5(9,6,21³$&217$,10(1768037672$5(66*6,
,668(6'(3,'///$'$7(''(&(0%(5
',675,%87,21
38%/,&
5LGV$&56B0DLO&755HVRXUFH
5LGV1UU'RUO/SO5HVRXUFH
5LGV1UU'VV6WVE5HVRXUFH
5LGV1UU/$.*ROGVWHLQ5HVRXUFH
5LGV1UU30)DUOH\\5HVRXUFH
5LGV5JQ0DLO&HQWHU5HVRXUFH
&7LOWRQ155
$'$06$FFHVVLRQ1R0/$
HPDLOFRQFXUUHQFH
2)),&(
'25//3/30
'25//3/30
'25//3//$
'66676%%&
1$0(
6'HYOLQ*LOO
6:LOOLDPV
.*ROGVWHLQ
9&XVXPDQR
'$7(
2)),&(
2*&1/2
'25//3/%&
'25//3/30
1$0(
0:RRGV
00DUNOH\\
6:LOOLDPV
'$7(
2)),&,$/5(&25'&23<