ML22220A272

From kanterella
Jump to navigation Jump to search

Response to a Request for Additional Informational Regarding the Monticello Fuel Oil Storage Tank Inspection
ML22220A272
Person / Time
Site: Monticello Xcel Energy icon.png
Issue date: 08/08/2022
From: Domingos C
Northern States Power Company, Minnesota, Xcel Energy
To:
Document Control Desk, Office of Nuclear Reactor Regulation
Shared Package
ML22220A271 List:
References
EPID L-2021-LLA-0231, L-MT--22-029
Download: ML22220A272 (11)


Text

7+($77$&+0(17727+,6/(77(5&217$,166(&85,7<5(/$7(',1)250$7,21

,7+2/')52038%/,&',6&/2685(,1$&&25'$1&(:,7+&)5

:HVW&RXQW\5RDG

0RQWLFHOOR01

$XJXVW /07

&)5

$771'RFXPHQW&RQWURO'HVN

861XFOHDU5HJXODWRU\&RPPLVVLRQ

DVKLQJWRQ'&

0RQWLFHOOR1XFOHDU*HQHUDWLQJ3ODQW

'RFNHW1R

5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVH

1R'35

5HVSRQVHWRD5HTXHVWIRU$GGLWLRQDO,QIRUPDWLRQ5HJDUGLQJWKH0RQWLFHOOR)XHO2LO6WRUDJH

7DQN,QVSHFWLRQ (3,'///$ 

5HIHUHQFHV

 1630OHWWHUWR15&³/LFHQVH$PHQGPHQW5HTXHVW5HYLVH01*37HFKQLFDO 6SHFLILFDWLRQVWR6XSSRUWD7HQ<HDU,QVSHFWLRQRIWKH'LHVHO*HQHUDWRU)XHO2LO 6WRUDJH7DQN' /07 GDWHG'HFHPEHU $'$06$FFHVVLRQ1R

0/$

 15&HPDLOWR1630³'UDIW5$,5(0RQWLFHOOR)XHO2LO6WRUDJH7DQN,QVSHFWLRQ (3,'///$ 'GDWHG-XQH $'$06$FFHVVLRQ1R

0/$

1RUWKHUQ6WDWHV3RZHU&RPSDQ\D0LQQHVRWDFRUSRUDWLRQGRLQJEXVLQHVVDV;FHO(QHUJ\

KHUHDIWHU³1630' VXEPLWWHGDOLFHQVHDPHQGPHQWUHTXHVW /$5 RQ'HFHPEHU

5HIHUHQFH IRUWKH0RQWLFHOOR1XFOHDU*HQHUDWLQJ3ODQW 01*3 7KHSURSRVHG/$5

UHTXHVWHGDQDPHQGPHQWWRWKH7HFKQLFDO6SHFLILFDWLRQV 76 IRU01*36SHFLILFDWLRQ

³'LHVHO)XHO2LO/XEH2LODQG6WDUWLQJ$LU'DQG6SHFLILFDWLRQ³$&6RXUFHV+/-6KXWGRZQ'

2QHWLPHRQO\76FKDQJHVZHUHSURSRVHGWRDOORZWKHFRPPRQ)XHO2LO6WRUDJH7DQN )267 

WREHRXWRIVHUYLFHIRUXSWRGD\VIRUSHUIRUPDQFHRI/LFHQVH5HQHZDOUHTXLUHGWHQ\HDU

LQVSHFWLRQVRIWKHWDQN$QDOWHUQDWHIXHORLOVWRUDJHV\VWHPZLOOEHLQVWDOOHGDQGXWLOL]HGGXULQJ

WKHWDQNLQVSHFWLRQWRVXSSO\WKHUHTXLUHG(PHUJHQF\'LHVHO*HQHUDWRU ('* 'D\7DQN

2Q-XQHWKH861XFOHDU5HJXODWRU\&RPPLVVLRQ 15& UHTXHVWHGDGGLWLRQDO

LQIRUPDWLRQ 5$,  5HIHUHQFH 7KH1630UHVSRQVHWRWKLV5$,LVSURYLGHGLQWKHIROORZLQJ

HQFORVXUH

Document Control Desk Page2 The information provided in this letter does not alter the evaluations performed for Reference 1 in accordance with 10 CFR 50.92, "Issuance of amendment 0 In accordance with 10 CFR 50.91, "Notice for public comment; State consultation," NSPM is providing to the designated Minnesota state official a copy of this response without the attachment to the enclosure which contains security related information withheld in accordance with 10 CFR 2.390.

Should you have any questions or if additional information is needed, please contact Mr. Rrchard Loeffler at (612) 342-8981 or Rick.A.Loeffler@xcelenergy.com.

Summary of Commitments This letter makes no new commitments and no revisions to existing commitments.

I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 8, 2022.

0 Christop er P, Domingos Site Vice President, Monticello and Prairie Island Nuclear Generating Plants Northern States Power Company- Minnesota Enclosure cc: Administrator, Region Ill, US NRC Project Manager, Monticello, US NRC Resident Inspector, Monticello, US NRC State of Minnesota

(1&/2685(

0217,&(//218&/($5*(1(5$7,1*3/$17

5(63216(727+(5(48(67)25$,7,21$/,1)250$7,21

5(*$5',1*7+(0217,&(//2)8(/2,/6725$*(7$1.,163(&7,21

SDJHVIROORZ 

(QFORVXUH /07

5(63216(727+(5(48(67)25$,7,21$/,1)250$7,21 5$, 

5(*$5',1*7+(0217,&(//2)8(/2,/6725$*(7$1.,163(&7,21

5$,

5HJXODWRU\%DVLV

&)5 I  VWDWHVWKDW³7KHOLFHQVHHVKDOOGRFXPHQWDQGPDLQWDLQWKHSURFHVVXVHGWR

GHYHORSDQGLGHQWLI\WDUJHWVHWVWRLQFOXGHWKHVLWHVSHFLILFDQDO\VHVDQGPHWKRGRORJLHVXVHG

WRGHWHUPLQHDQGJURXSWKHWDUJHWVHWHTXLSPHQWRUHOHPHQWV'

&)5 H  9LWDODUHDVVWDWHVWKDW

L 9LWDOHTXLSPHQWPXVWEHORFDWHGRQO\ZLWKLQYLWDODUHDVZKLFKPXVWEHORFDWHG ZLWKLQDSURWHFWHGDUHDVRWKDWDFFHVVWRYLWDOHTXLSPHQWUHTXLUHVSDVVDJH WKURXJKDWOHDVWWZRSK\VLFDOEDUULHUVH[FHSWDVRWKHUZLVHDSSURYHGE\WKH

&RPPLVVLRQDQGLGHQWLILHGLQWKHVHFXULW\SODQV

LL 7KHOLFHQVHHVKDOOSURWHFWDOOYLWDODUHDDFFHVVSRUWDOVDQGYLWDODUHD HPHUJHQF\H[LWVZLWKLQWUXVLRQGHWHFWLRQHTXLSPHQWDQGORFNLQJGHYLFHVWKDW DOORZUDSLGHJUHVVGXULQJDQHPHUJHQF\DQGVDWLVI\WKHYLWDODUHDHQWU\

FRQWUROUHTXLUHPHQWVRIWKLVVHFWLRQ

LLL 8QRFFXSLHGYLWDODUHDVPXVWEHORFNHGDQGDODUPHG

LY 0RUHWKDQRQHYLWDODUHDPD\EHORFDWHGZLWKLQDVLQJOHSURWHFWHGDUHD

,VVXH

2QSDJHRIRIWKHOLFHQVHDPHQGPHQWUHTXHVWGDWHG'HFHPEHU $JHQF\ZLGH

'RFXPHQWV$FFHVVDQG0DQDJHPHQW6\VWHP $'$06 $FFHVVLRQ1R0/$ WKH

ILUVWSDUDJUDSKPHQWLRQVWKDWWKHKRVHVIURPWKHGRXEOHZDOOHGWHPSRUDU\IXHORLOVWRUDJH

WDQNVUHIHUUHGWRDV³)5$&'SHQHWUDWLQJWKHSURWHFWHGDUHD 3$ IHQFLQJZLOOKDYHVHFXULW\

FRPSHQVDWRU\PHDVXUHVLPSOHPHQWHGDVGHWHUPLQHGE\WKH6HFXULW\3ODQ7KHILUVW

SDUDJUDSKDOVRPHQWLRQVWKDWWKH)5$&V\VWHPZLOOEHORFDWHGRXWVLGHWKH3$DQGWKHIXHO

WUDQVIHUV\VWHPZLOOEHORFDWHGLQVLGHWKH3$

5$,5HTXHVW

KDWHIIHFWLIDQ\ZLOOWKHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\

HTXLSPHQWKDYHRQ  WDUJHWVHWV  YLWDODUHDVDQGHTXLSPHQWDQG  LPSOHPHQWDWLRQRI

WKHVLWH¶VSURWHFWLYHVWUDWHJ\"

3DJHRI

(QFORVXUH /07

5$,5HVSRQVH

x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\HTXLSPHQW GRHVQRWFUHDWHDQ\QHZWDUJHWVHWVRUFKDQJHDQ\WDUJHWVHWVGHVFULEHGZLWKLQWKH 7DUJHW6HW$QDO\VLV

x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\HTXLSPHQW GRHVQRWFUHDWHDQ\QHZYLWDODUHDVRUFKDQJHDQ\YLWDODUHDVWKDWDUHGHVFULEHGZLWKLQ WKH6HFXULW\3ODQ

x 7KHUHPRYDORIWKHIXHORLOVWRUDJHWDQNDQGWKHLQVWDOODWLRQRIWHPSRUDU\HTXLSPHQW GRHVQRWDIIHFWLPSOHPHQWDWLRQRIWKHVLWH¶VSURWHFWLYHVWUDWHJ\&RPSHQVDWRU\

PHDVXUHVZLOOEHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKH6HFXULW\3ODQGXULQJWKH DSSOLFDEOHSKDVHVRIWKHWHPSRUDU\FRQILJXUDWLRQFKDQJH VHHUHVSRQVHWR5$, 

5$,

5HJXODWRU\%DVLV

&)5 E  VWDWHVWKDW³7KHOLFHQVHHVKDOOHVWDEOLVKPDLQWDLQDQGLPSOHPHQWDQ

LQVLGHUPLWLJDWLRQSURJUDPDQGVKDOOGHVFULEHWKHSURJUDPLQWKH3K\VLFDO6HFXULW\3ODQ'

L 7KHLQVLGHUPLWLJDWLRQSURJUDPPXVWPRQLWRUWKHLQLWLDODQGFRQWLQXLQJ WUXVWZRUWKLQHVVDQGUHOLDELOLW\RILQGLYLGXDOVJUDQWHGRUUHWDLQLQJXQHVFRUWHG DFFHVVDXWKRUL]DWLRQWRDSURWHFWHGRUYLWDODUHDDQGLPSOHPHQWGHIHQVH

LQGHSWKPHWKRGRORJLHVWRPLQLPL]HWKHSRWHQWLDOIRUDQLQVLGHUWRDGYHUVHO\

DIIHFWHLWKHUGLUHFWO\RULQGLUHFWO\WKHOLFHQVHH¶VFDSDELOLW\WRSUHYHQW VLJQLILFDQWFRUHGDPDJHDQGVSHQWIXHOVDERWDJH

LL 7KHLQVLGHUPLWLJDWLRQSURJUDPPXVWFRQWDLQHOHPHQWVIURP

$ 7KHDFFHVVDXWKRUL]DWLRQSURJUDPGHVFULEHGLQ

% 7KHILWQHVVIRUGXW\SURJUDPGHVFULEHGLQSDUWRIWKLVFKDSWHU

& 7KHF\EHUVHFXULW\SURJUDPGHVFULEHGLQDQG

' 7KHSK\VLFDOSURWHFWLRQSURJUDPGHVFULEHGLQWKLVVHFWLRQ

&)5 H  L % VWDWHVWKDW³0RQLWRUHGZLWKLQWUXVLRQGHWHFWLRQHTXLSPHQWGHVLJQHGWR

VDWLVI\WKHUHTXLUHPHQWVRI L DQGEHFDSDEOHRIGHWHFWLQJERWKDWWHPSWHGDQGDFWXDO

SHQHWUDWLRQRIWKHSURWHFWHGDUHDSHULPHWHUEDUULHUEHIRUHFRPSOHWHGSHQHWUDWLRQRIWKH

SURWHFWHGDUHDSHULPHWHUEDUULHU'

3DJHRI

(QFORVXUH /07

&)5 J ³$FFHVVFRQWUROV'VWDWHVWKDW³  &RQVLVWHQWZLWKWKHIXQFWLRQRIHDFKEDUULHU

RUEDUULHUV\VWHPWKHOLFHQVHHVKDOOFRQWUROSHUVRQQHOYHKLFOHDQGPDWHULDODFFHVVDV

DSSOLFDEOHDWHDFKDFFHVVFRQWUROSRLQWLQDFFRUGDQFHZLWKWKHSK\VLFDOSURWHFWLRQSURJUDP

GHVLJQUHTXLUHPHQWVRI&)5 E '

&)5 K ³6HDUFKSURJUDPV'VWDWHVLQSDUWWKDWWKHOLFHQVHHLVUHTXLUHGWRGHYHORS

DQGLPSOHPHQWDVHDUFKSURJUDP³WRGHWHFWGHWHUDQGSUHYHQWWKHLQWURGXFWLRQRIILUHDUPV

H[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWRFRPPLWUDGLRORJLFDO

VDERWDJH'

&)5 L ³/DQGYHKLFOHV'VWDWHVWKDW

/LFHQVHHVVKDOO $ 'HVLJQFRQVWUXFWLQVWDOODQGPDLQWDLQDYHKLFOHEDUULHU

V\VWHPWRLQFOXGHSDVVLYHDQGDFWLYHEDUULHUVDWDVWDQGRIIGLVWDQFHDGHTXDWH

WRSURWHFWSHUVRQQHOHTXLSPHQWDQGV\VWHPVQHFHVVDU\WRSUHYHQWVLJQLILFDQW

FRUHGDPDJHDQGVSHQWIXHOVDERWDJHDJDLQVWWKHHIIHFWVRIWKHGHVLJQEDVLV

WKUHDWRIUDGLRORJLFDOVDERWDJHODQGYHKLFOHERPEDVVDXOW

&)5 R ³&RPSHQVDWRU\PHDVXUHV'VWDWHVWKDW

 7KHOLFHQVHHVKDOOLGHQWLI\FULWHULDDQGPHDVXUHVWRFRPSHQVDWHIRU GHJUDGHGRULQRSHUDEOHHTXLSPHQWV\VWHPVDQGFRPSRQHQWVWRPHHWWKH UHTXLUHPHQWVRIWKLVVHFWLRQ

 &RPSHQVDWRU\PHDVXUHVPXVWSURYLGHDOHYHORISURWHFWLRQWKDWLV HTXLYDOHQWWRWKHSURWHFWLRQWKDWZDVSURYLGHGE\WKHGHJUDGHGRU LQRSHUDEOHHTXLSPHQWV\VWHPRUFRPSRQHQWV

$SSHQGL[&WR3DUW6HFWLRQ,,%F Y UHTXLUHVOLFHQVHHVWRGHYHORSLPSOHPHQWDQG

PDLQWDLQDZULWWHQSURWHFWLYHVWUDWHJ\WREHGRFXPHQWHGLQSURFHGXUHVWKDWGHVFULEHVLQGHWDLO

WKHSK\VLFDOSURWHFWLRQPHDVXUHVVHFXULW\V\VWHPVDQGGHSOR\PHQWRIWKHDUPHGUHVSRQVH

WHDPUHODWLYHWRVLWHVSHFLILFFRQGLWLRQVWRLQFOXGHEXWQRWEHOLPLWHGWRIDFLOLW\OD\RXWDQGWKH

ORFDWLRQRIWDUJHWVHWHTXLSPHQWDQGHOHPHQWV7KHSURWHFWLYHVWUDWHJ\VKRXOGVXSSRUWWKH

JHQHUDOJRDOVRSHUDWLRQDOFRQFHSWVDQGSHUIRUPDQFHREMHFWLYHVLGHQWLILHGLQWKHOLFHQVHH¶V

VDIHJXDUGVFRQWLQJHQF\SODQ

,VVXH

7KHOLFHQVHDPHQGPHQWUHTXHVWGRHVQRWDSSHDUWRDGGUHVVKRZ0RQWLFHOOR1XFOHDU

  • HQHUDWLQJ3ODQW 0RQWLFHOOR ZLOOFRQWLQXHWREHSURWHFWHGDJDLQVWWKH'HVLJQ%DVLV7KUHDW

'%7 RUSURYLGHDQ\GHWDLOHGLQIRUPDWLRQUHJDUGLQJWKHSK\VLFDOVHFXULW\FRPSHQVDWRU\

PHDVXUHVWKDWZLOOEHWDNHQWRHQVXUHWKHSODQWUHPDLQVDGHTXDWHO\SURWHFWHGIRUWKHGXUDWLRQ

RIWKHWHPSRUDU\FRQILJXUDWLRQFKDQJHWRWKHSODQW2QSDJHRI³$OWHUQDWH)XHO2LO

6XSSO\6\VWHP'WKHILUVWSDUDJUDSKPHQWLRQVWKDWWKHKRVHVIURPWKH)5$&WDQNVSHQHWUDWLQJ

WKHSURWHFWHGDUHD 3$ IHQFLQJZLOOKDYHVHFXULW\FRPSHQVDWRU\PHDVXUHVLPSOHPHQWHGDV

GHWHUPLQHGE\WKH6HFXULW\3ODQ7KHILUVWSDUDJUDSKDOVRPHQWLRQVWKDWWKH)5$&V\VWHPZLOO

EHORFDWHGRXWVLGHWKH3$DQGWKHIXHOWUDQVIHUV\VWHPZLOOEHORFDWHGLQVLGHWKH3$7KH

VXEPLWWDOGRHVQRWSURYLGHDGHVFULSWLRQRIZKHUHRXWVLGHWKH3$WKH)5$&V\VWHPZLOOEH

ORFDWHG HJZLOOLWEHLQWKHRZQHUFRQWUROOHGDUHDQHDUWKHODUJHRUVPDOOYHKLFOHEDUULHU

3DJHRI

(QFORVXUH /07

V\VWHP" ,WDOVRGRHVQRWGHVFULEHZKHUHWKHIXHOWUDQVIHUV\VWHPZLOOEHORFDWHGZLWKLQWKH

3$ ZLOOWKHORFDWLRQLQWHUIHUHZLWKLQWHUORFNLQJRYHUODSSLQJILHOGVRIILUH" 3DJHRIWRS

RISDJHVWDWHVLQSDUW³<<VHFXULW\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJWKHWLPHWKHKRVHLV

UXQWKURXJKWKHGRRURIWKH'LHVHO*HQHUDWRU%XLOGLQJ'3DJHRI³$)266:HDWKHU

2SHUDWLRQDO&RQVLGHUDWLRQV'VHFRQGSDUDJUDSKVWDWHVLQSDUW³<<WKHWDQNFDQEHTXLFNO\

UHILOOHGWKHKRVHVUHPRYHGDQGWKH'LHVHO*HQHUDWRU%XLOGLQJGRRUFORVHG'

5$,5HTXHVW

 'HVFULEHKRZ0RQWLFHOORZLOOFRQWLQXHWREHSURWHFWHGDJDLQVWWKH'%7ZLWKWKH VHFXULW\FRPSHQVDWRU\PHDVXUHVIRUWKHGXUDWLRQRIWKHWHPSRUDU\FRQILJXUDWLRQ FKDQJHWRWKHSODQW

5$,,WHP5HVSRQVH

&RPSHQVDWRU\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJVHYHUDOGLIIHUHQWSKDVHVRIWKH WHPSRUDU\FRQILJXUDWLRQFKDQJH

)LUVWFRPSHQVDWRU\PHDVXUHVZLOOEHLPSOHPHQWHGGXULQJWKHWLPHWKDWH[FDYDWLRQLV FRQGXFWHGWRHQWUHQFKLQVWDOOWKHIXHOWUDQVIHUKRVHVXQGHUWKH3URWHFWHG$UHD 3$

ERXQGDU\7KHVHVSHFLILFFRPSHQVDWRU\PHDVXUHVZLOOQRORQJHUEHQHHGHGRQFHWKH IXHOWUDQVIHUKRVHVDUHHVWDEOLVKHGXQGHUWKH3$ERXQGDU\VLQFHWKHVL]HRIWKHVH KRVHVGRQRWUHVXOWLQDQXQDWWHQGHGRSHQLQJ 8$2 7KHVHFRPSHQVDWRU\PHDVXUHV ZLOODOVREHHVWDEOLVKHGGXULQJUHPRYDORIWKHIXHOWUDQVIHUKRVHV7KHFRPSHQVDWRU\

PHDVXUHVWKDWZLOOEHLPSOHPHQWHGGXULQJWKHVHSKDVHVDUHLQDFFRUGDQFHZLWK 6HFWLRQRIWKH6HFXULW\3ODQ

6HFRQGFRPSHQVDWRU\PHDVXUHVZLOOEHLPSOHPHQWHGZKHQHYHUWKH'LHVHO*HQHUDWRU

%XLOGLQJGRRULVRSHQHGWRWUDQVIHUIXHORLOLQWRWKHUHTXLUHG(PHUJHQF\'LHVHO

  • HQHUDWRU ('* GD\WDQN7KHFRPSHQVDWRU\PHDVXUHVWKDWZLOOEHLPSOHPHQWHG GXULQJWKLVSKDVHDUHLQDFFRUGDQFHZLWK6HFWLRQRIWKH6HFXULW\3ODQ

 'HVFULEHKRZWKHKRVHVZLOOSHQHWUDWHWKH3$IHQFHOLQH HJWKURXJKRSHQJDWHV

SHQHWUDWLRQ V WKURXJKWKHIHQFHOLQHIDEULF DQGGHVFULEHWKHVHFXULW\FRPSHQVDWRU\

PHDVXUHVWKDWZLOOEHSURYLGHGDQGLPSOHPHQWHGZLWKLQWKHVLWHSURFHGXUHV$OVR

GHVFULEHKRZWKHLQWUXVLRQGHWHFWLRQV\VWHP ,'6 DQGDVVHVVPHQWV\VWHPDWWKH3$

EDUULHUZLOOFRQWLQXHWRSURYLGHLWVLQWHQGHGIXQFWLRQVIRUWKHGXUDWLRQRIWKHWHPSRUDU\

SODQWFRQILJXUDWLRQ

5$,,WHP5HVSRQVH 7KHIXHOWUDQVIHUKRVHVZLOOEHHQWUHQFKHGXQGHUQHDWKWKH3$ERXQGDU\ LHWKH3$

IHQFHOLQH $VGHVFULEHGLQWKHUHVSRQVHWR5$,,WHPFRPSHQVDWRU\PHDVXUHV ZLOOEHLPSOHPHQWHGGXULQJWKHLQVWDOODWLRQDQGUHPRYDORIWKHIXHOWUDQVIHUKRVHV

2QFHWKHIXHOWUDQVIHUKRVHVDUHHVWDEOLVKHGWKHFRPSHQVDWRU\PHDVXUHVDUHQR ORQJHUUHTXLUHGDVWKHKRVHGLPHQVLRQVGRQRWUHVXOWLQ8$2SDWKZD\V7KH LQVWDOODWLRQRIWKHIXHOWUDQVIHUKRVHVZLOOQRWLPSDFWWKH,'6DQGDVVHVVPHQW FDSDELOLWLHVZKLFKZLOOEHYDOLGDWHGWKURXJKDSSURYHGWHVWLQJSURFHGXUHV

3DJHRI

(QFORVXUH /07

 'HVFULEHKRZFKDQJHVWRWKH,'6ZLOOEHLQVSHFWHGDQGWHVWHGGXULQJLPSOHPHQWDWLRQ RIDQ\FKDQJHV&RQILUPZKHWKHUWKHWHVWLQJRI,'6ZLOOFRQIRUPWR 5HJXODWRU\*XLGH³3HULPHWHU,QWUXVLRQ$ODUP6\VWHPV'5HYLVLRQ

$JHQF\ZLGH'RFXPHQWV$FFHVVDQG0DQDJHPHQW6\VWHP$FFHVVLRQ1R

0/ 6HFWLRQ³5HFRPPHQGHG7HVWLQJ3URFHGXUHV'7HVWLQJ 2SWLRQ,RU,,

5$,,WHP5HVSRQVH 7KHUHZLOOEHQRFKDQJHVWRWKH,'61RDOWHUQDWLYHWHVWLQJLVQHHGHGRUUHTXLUHG

 3URYLGHGHWDLOHGGHVFULSWLRQVRIZKHUHWKH)5$&DQGIXHORLOWUDQVIHUV\VWHPVZLOOEH ORFDWHGDQGZKHWKHUWKHVHORFDWLRQVZLOOLQWHUIHUHZLWKWKHVLWHSURWHFWLYHVWUDWHJ\

5$,,WHP5HVSRQVH 7KH)5$&WDQNVZLOOEHORFDWHGWRWKH:HVWRIWKHSODQWLQDSRVLWLRQEHWZHHQWKH VLWH¶VFUHGLWHG(DUO\:DUQLQJ6\VWHP (:6 DQGWKH3$ERXQGDU\,'67KLVORFDWLRQ GRHVQRWUHVXOWLQGHJUDGDWLRQRISURWHFWLYHVWUDWHJ\HIIHFWLYHQHVV HJILHOGVRIILUH 

6HH)LJXUHVDQGLQWKHDWWDFKPHQWWRWKLVHQFORVXUH

 'HVFULEHWKHVHFXULW\FRPSHQVDWRU\PHDVXUHVIRUWKH'LHVHO*HQHUDWLQJ%XLOGLQJWKDW ZLOOEHLPSOHPHQWHGSHUVLWHSURFHGXUHVWRSURWHFWDJDLQVWXQDXWKRUL]HGDFFHVVDQG FRQWURO

5$,,WHP5HVSRQVH 7KHFRPSHQVDWRU\PHDVXUHVWKDWZLOOEHLPSOHPHQWHGGXULQJWKLVSKDVHDUHLQ DFFRUGDQFHZLWK6HFWLRQRIWKH6HFXULW\3ODQ

5$,

5HJXODWRU\%DVLV

&)5³6DIHW\VHFXULW\LQWHUIDFHUHTXLUHPHQWVIRUQXFOHDUSRZHUUHDFWRUV'VWDWHVWKDW

D (DFKRSHUDWLQJQXFOHDUSRZHUUHDFWRUOLFHQVHHZLWKDOLFHQVHLVVXHGXQGHU SDUWRURIWKLVFKDSWHUVKDOOFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKLV VHFWLRQ

E 7KHOLFHQVHHVKDOODVVHVVDQGPDQDJHWKHSRWHQWLDOIRUDGYHUVHHIIHFWVRQ VDIHW\DQGVHFXULW\LQFOXGLQJWKHVLWHHPHUJHQF\SODQEHIRUHLPSOHPHQWLQJ FKDQJHVWRSODQWFRQILJXUDWLRQVIDFLOLW\FRQGLWLRQVRUVHFXULW\

F 7KHVFRSHRIFKDQJHVWREHDVVHVVHGDQGPDQDJHGPXVWLQFOXGHSODQQHG DQGHPHUJHQWDFWLYLWLHV VXFKDVEXWQRWOLPLWHGWRSK\VLFDOPRGLILFDWLRQV

SURFHGXUDOFKDQJHVFKDQJHVWRRSHUDWRUDFWLRQVRUVHFXULW\DVVLJQPHQWV

3DJHRI

(QFORVXUH /07

PDLQWHQDQFHDFWLYLWLHVV\VWHPUHFRQILJXUDWLRQDFFHVVPRGLILFDWLRQRU

UHVWULFWLRQVDQGFKDQJHVWRWKHVHFXULW\SODQDQGLWVLPSOHPHQWDWLRQ 

G :KHUHSRWHQWLDOFRQIOLFWVDUHLGHQWLILHGWKHOLFHQVHHVKDOOFRPPXQLFDWH WKHPWRDSSURSULDWHOLFHQVHHSHUVRQQHODQGWDNHFRPSHQVDWRU\DQGRU PLWLJDWLYHDFWLRQVWRPDLQWDLQVDIHW\DQGVHFXULW\XQGHUDSSOLFDEOH

&RPPLVVLRQUHJXODWLRQVUHTXLUHPHQWVDQGOLFHQVHFRQGLWLRQV

,VVXH

7KHVXEPLWWDOGLGQRWDSSHDUWRDGGUHVVVDIHW\VHFXULW\LQWHUIDFH

5HTXHVW

'HVFULEHKRZVDIHW\VHFXULW\LQWHUIDFHLVEHLQJDGGUHVVHGIRUWKLVWHPSRUDU\SODQWFKDQJHLQ

DFFRUGDQFHZLWK&)5

5$,5HVSRQVH

7KHVDIHW\VHFXULW\LQWHUIDFHLVDGGUHVVHGE\WKHQXFOHDULQGXVWU\6WDQGDUG'HVLJQ3URFHVV

'HYHORSPHQWDQGLPSOHPHQWDWLRQRIWKH$OWHUQDWH)XHO2LO6XSSO\6\VWHP $)266 WHPSRUDU\

PRGLILFDWLRQLVFRQWUROOHGE\WKLVSURFHVV'XULQJGHYHORSPHQWD'HVLJQ$WWULEXWH5HYLHZZDV

SHUIRUPHGWRGHWHUPLQHSRWHQWLDOO\LPSDFWHGHQJLQHHULQJGLVFLSOLQHVSURJUDPVDQG

VWDNHKROGHUVIURPRWKHUGHSDUWPHQWVDUHDVLQFOXGLQJ6HFXULW\DQG(PHUJHQF\

3UHSDUHGQHVV7KH'HVLJQ$WWULEXWH5HYLHZUHVXOWHGLQDQLPSDFWUHYLHZEHLQJSHUIRUPHGE\

6HFXULW\6HFXULW\HYDOXDWHGWKHSK\VLFDOFKDQJHVWRWKHSODQWIRUWKHLUHIIHFWVRQWKH6HFXULW\

3ODQ6HFXULW\UHODWHGLQSXWZDVSURYLGHGWRVXSSRUWWHPSRUDU\PRGLILFDWLRQGHYHORSPHQWDV

ZHOODVWKHQHHGIRUFRPSHQVDWRU\PHDVXUHVZKLFKDUHGLVFXVVHGLQWKHUHVSRQVHWR5$,

1RLPSDFWVWRWKH(PHUJHQF\3ODQZHUHLGHQWLILHG

5$,

5HJXODWRU\%DVLV

185(*³*XLGDQFHIRUWKH5HYLHZRI&KDQJHVWR+XPDQ$FWLRQV'SURYLGHVJXLGDQFHIRU

UHYLHZLQJFKDQJHVWRKXPDQDFWLRQVWKDWDUHFUHGLWHGIRUVDIHW\185(*SURYLGHV

JXLGDQFHLQ6HFWLRQVDQGIRUYHULI\LQJWKRVHGHWHUPLQLVWLFDVSHFWVRIGHVLJQKDYHEHHQ

DSSURSULDWHO\FRQVLGHUHG185(*VD\VWKDWGHWHUPLQLVWLFDVSHFWVLQFOXGHYHULI\LQJWKDW

WKHFKDQJHPHHWVFXUUHQWUHJXODWLRQVDQGGRHVQRWFRPSURPLVHGHIHQVHLQGHSWK

,VVXH

7KHVXEPLWWDOVWDWHVWKDWSURFHGXUHVZLOOEHLQSODFHDQGWUDLQLQJZLOOEHSURYLGHGWRWKH

RSHUDWRUVDVGHWHUPLQHGE\WKH6\VWHPDWLF$SSURDFKWR7UDLQLQJ 6$7 SURFHVV,WLVQRWFOHDU

LQWKHVXEPLWWDOLIWKHUHDUHDQ\RSHUDWRUDFWLRQVIRUWKLVQHZDOLJQPHQW

3DJHRI

(QFORVXUH /07

5HTXHVW

3URYLGHDOLVWRIDQ\UHYLVHGRSHUDWRUDFWLRQVWKDWZLOOEHUHTXLUHGWRWUDQVIHURLOIURPWKH

DOWHUQDWHIXHORLOVWRUDJHV\VWHPDVZHOODVDQ\WLPLQJDQDO\VHVIRUWKRVHRSHUDWRUDFWLRQV

5HVSRQVH

7KHRSHUDWRUDFWLRQVQRUPDOO\DVVRFLDWHGZLWKWKH'LHVHO)XHO2LO7UDQVIHU6\VWHPFRQVLVWRI

 0RQLWRULQJWKHOHYHOLQWKHFRPPRQ)XHO2LO6WRUDJH7DQN )267RU7 

 9HULI\LQJWKDWFRQWLQXRXVIORZIURP)267WRWKH('*'D\7DQNVLVPDLQWDLQHG+/-

WKHUHE\DXWRPDWLFDOO\PDLQWDLQLQJWKHUHTXLUHG('*'D\7DQN V IXOO

 5HFHLYLQJQHZIXHORLOIRUPDNHXSWRWKH)267DQG

 $GGLQJPDNHXSIXHORLOWRWKH)267ZKHQQHFHVVDU\

6LQFHWKH)267LVUHPRYHGIURPVHUYLFHIRUWKLVWHQ\HDU/LFHQVH5HQHZDOUHTXLUHGLQVSHFWLRQ

RIWKHWDQNWKHIROORZLQJDQDORJRXVRSHUDWRUPRQLWRULQJDFWLRQVIRUWKHLQVWDOOHG$)266DQG

WKHUHTXLUHG('*'D\7DQNZLOOEHGHVFULEHGLQSURFHGXUHVRUWHPSRUDU\PRGLILFDWLRQ

GRFXPHQWVXWLOL]HGGXULQJWKH)267LQVSHFWLRQHYROXWLRQ1RWHWKDWWKHVHSURFHGXUHV

WHPSRUDU\PRGLILFDWLRQGRFXPHQWVDUH&RPSHQVDWRU\0HDVXUHVDVGHVFULEHGLQWKH

6HFWLRQDQG$WWDFKPHQWRIWKHOLFHQVHDPHQGPHQWUHTXHVW /$5 

x 0RQLWRULQJIXHOOHYHO YROXPH LQWKH$)266VWRUDJHWDQNV FROORTXLDOO\UHIHUUHGWRDV

³)5$&'WDQNV LQVWHDGRIWKH)2670RQLWRULQJWKH)267LVGRQHRQFHSHUVKLIWZKLOH DQ('*LVLQVWDQGE\DQGDSSUR[LPDWHO\KRXUO\ZKLOHDQ('*LVLQVHUYLFH$VWKLVLV SDVVLYHPRQLWRULQJDQGLVHVVHQWLDOO\WKHVDPHDFWLRQWKDWFXUUHQWO\H[LVWVQRWLPLQJ DQDO\VLVZDVSHUIRUPHG

x 0RQLWRULQJIXHOOHYHOLQWKHUHTXLUHG('*'D\7DQNLQVWHDGRIYHULI\LQJFRQWLQXRXVIORZ IURPWKH)2677KLVLVGRQHRQFHSHUVKLIWZKLOHDQ('*LVLQVWDQGE\DQG DSSUR[LPDWHO\KRXUO\ZKLOHDQ('*LVLQVHUYLFH$VWKLVLVSDVVLYHPRQLWRULQJDQGLV HVVHQWLDOO\WKHVDPHDFWLRQWKDWFXUUHQWO\H[LVWVQRWLPLQJDQDO\VLVZDVSHUIRUPHG

x 5HFHLYLQJQHZIXHORLOGLUHFWO\WRWKH$)266VWRUDJHWDQNVUDWKHUWKDQUHFHLYLQJIXHORLO WRWKH'LHVHO2LO5HFHLYLQJ7DQN 7 DQGWKHQWUDQVIHUULQJLWWRWKH)267&RPELQLQJ WKHVHWZRH[LVWLQJDFWLYLWLHVLQWRDVLQJOHDFWLRQVLPSOLILHVWKHSURFHVVUHTXLULQJOHVVWLPH WKDQWKHSURFHVVFXUUHQWO\HPSOR\HGKHQFHQRWLPLQJDQDO\VLVZDVSHUIRUPHG

x 7UDQVIHUULQJIXHORLOIURPWKH)5$&WDQNVWRPDLQWDLQWKHUHTXLUHG('*'D\7DQN VXSSO\PDQXDOO\LQVWHDGRIWKHQRUPDOFRQWLQXRXVIORZIURPWKH)2677KLVZLOOEH DFFRPSOLVKHGE\URXWLQJDGLVFKDUJHKRVHIURPDSRUWDEOHIXHORLOWUDQVIHUSXPSZKLFK WDNHVVXFWLRQRQWKH)5$&WDQNVWRWUDQVIHUIXHORLOWRWKHUHTXLUHG('*'D\7DQN

R $WLPLQJDQDO\VLVLQYROYLQJDVLPXODWHGZDONWKURXJKRIWKHHYROXWLRQXVLQJWKH FXUUHQWSODQQHGWHPSRUDU\PRGLILFDWLRQGRFXPHQWVIRUWKH$)266ZDV SHUIRUPHGZKLFKUHVXOWHGLQWKHIROORZLQJWLPHOLQH

,QSDUDOOHORQHRSHUDWRUUHSRUWVWRWKH$)266ZKHUHWKHSRUWDEOHIXHORLO WUDQVIHUSXPSLVORFDWHGZKLOHDPLQLPXPRIRQHRSHUDWRUDORQJZLWKD VHFXULW\RIILFHUDQGDUDGLDWLRQSURWHFWLRQWHFKQLFLDQUHSRUWWRWKH('*

5RRPDFFHVVGRRU+/-DSSUR[LPDWHO\PLQXWHVWRWDO

3DJHRI

(QFORVXUH /07

7KH('*DFFHVVGRRULVRSHQHGDQGWKHSUHVWDJHGKRVHLVURXWHGWRWKH

('*'D\7DQNGHVLJQDWHGILOOSRLQW+/-DSSUR[LPDWHO\PLQXWHV

7KHSRUWDEOHIXHORLOWUDQVIHUSXPSLVVWDUWHGDQGILOOLQJFRPPHQFHV+/-

DSSUR[LPDWHO\PLQXWHV

R 7KHUHIRUHDSSUR[LPDWHO\PLQXWHVZLOOEHQHHGHGWRFRPPHQFHILOOLQJWKH UHTXLUHG('*'D\7DQN

$GGLWLRQDOO\DVGHVFULEHGLQWKH/$5RQFHFRPPHQFHGDFRPSOHWHUHILOOLQJRIDQ

HPSW\('*GD\WDQN JDOORQWDQN LVHVWLPDWHGWRWDNHDSSUR[LPDWHO\PLQXWHV

7KHUHIRUHEDVHGRQWKHDERYHFRQVLGHUDWLRQVWKHWLPHGXUDWLRQWRUHILOOWKHUHTXLUHG

('*'D\7DQNLVZHOOZLWKLQWKHPLQLPXPKRXUVXSSO\RIIXHORLODYDLODEOHIRUWKH

('*

3DJHRI