NRC-2009-0194, LTR-09-0329 - E-mail, David Eortman, Review of Calvert Cliffs, Units 1 & 2, and Independent Spent Fuel Storage Installation, Notice of Consideration of Approval of Application Regarding Proposed Restructuring & of Direct Transfer of Li

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LTR-09-0329 - E-mail, David Eortman, Review of Calvert Cliffs, Units 1 & 2, and Independent Spent Fuel Storage Installation, Notice of Consideration of Approval of Application Regarding Proposed Restructuring & of Direct Transfer of License
ML091880495
Person / Time
Site: Calvert Cliffs  
Issue date: 05/22/2009
From: Ortman D
- No Known Affiliation
To:
NRC/SECY/RAS
References
LTR-09-0329, NRC-2009-0194
Download: ML091880495 (9)


Text

OFFICE OF THE SECRETARY CORRESPONDENCE CONTROL TICKET Date Printed: Jul 02, 2009 09:53 PAPER NUMBER:

ACTION OFFICE:

AUTHOR:

AFFILIATION:

ADDRESSEE:

SUBJECT:

ACTION:

DISTRIBUTION:

LETTER DATE:

ACKNOWLEDGED SPECIAL HANDLING:

LTR-09-0329 EDO David Ortman WA Hearing Docket LOGGING DATE:

07/02/2009 EDO DEDMRT DEDR DI~tCM AO 318, 74 FR21413 May 7, 2009 NRC-2009-0194; Docket Nos. 50-317 and 0 Appropriate SECY/RAS 05/22/2009 No ML091671837 HOLD FROM ADAMS....PER SECY/RAS...REBECCA GlITTER NOTES:

Please note page two of the Order FILES FILE LOCATION:

DATE DUE:

DATE SIGNED:

~~C>I-OI~1 Eg,-10b: S

,CS E

1

From:

DAVID E ORTMAN [deortman@msn.com]

Sent:

Friday, May 22, 2009 2:28 PM To:

Hearing Docket Cc:

dfstenger@hhlaw.com; jmatthews@morganlewis.com

Subject:

RE: NRC-2009-0194: Docket Nos 50-217 and 50-318, 74 FR 21413 (May 7, 2009) Attn: Rulemakings and Adjudications Staff May 22, 2009 Attn: Rulemakings and Adjudications Staff Secretary Nuclear Regulatory Commission WA D.C. 20555-0001 RE: NRC-2009-0194; Docket Nos. 50-317 and 50-318, 74 FR 21413 (May 7, 2009)

Dear NRC:

I have reviewed a copy of the above referenced notice regarding the Calvert Cliffs Nuclear Power Plant, Inc., Calvert Cliffs Nuclear Power Plant, Unit Nos. I and 2; Calvert Cliffs Independent Spent Fuel Storage Installation; Notice of Consideration of Approval of Application Regarding Proposed Restructuring and of Direct Transfer of Licenses Pursuant to 10 CFR 50.80 and 10 CFR 72.50, and of Approval of Conforming License Amendments Pursuant to 10 CFR 50.90 and 10 CFR 72.56 and Opportunity for a Hearing, which appeared in the May 7, 2009, Federal Register.

Deficient Public Notice Nowhere in the public notice is the location of these nuclear power plants given. In the future, please provide a location for these nuclear power plants in your public notices so that the public does not have to search independently to determine that they are located in Calvert County, Maryland, on the shore of Chesapeake Bay.

Background on Calvert Cliffs Nuclear Station According to other sources, Units I and 2 are pressurized water reactors. Unit I went into commercial service in 1975 and Unit 2 in 1977. In 2000, the NRC granted 20-year license extensions to both units.

Because of the age of these reactors, it is virtually certain that accidents and plant failures will occur.

The rate of incident for older reactors is increased due to age related degradation. Troublesome problems have already occurred at Calvert Cliffs. After six years of operation, in 1983, it was discovered that check valves had not been installed in the floor drain system of both units that carries water to the turbine condenser pit in the turbine building. In 1987, the emergency core cooling system was disabled while the reactor was undergoing low power testing. In 1988, due to a fire in an annunciator cabinet, all control room annunciator alarms in Unit 2 failed and were out of service for two days. Later in 1988,

operators of Unit I discovered instrument calibration problems following a refueling outage. Other incidents have occurred in 2001 at Unit I and in 1994 and 2004 at Unit 2.

Corporate Shells According to the public notice the Renewed Facility Operating Licenses, Nos. DPR-53 and DPF-69 and Material License No. SNM-2505 are currently held by:

  • Calvert Cliffs Nuclear Power Plant, Inc. (CCNPPI) as owner and licensed operator.
  • Calvert Cliffs Nuclear Power Plant, Inc. is currently owned by Constellation Energy Nuclear Group, LLC (CENG).
  • CENG is a wholly-owned subsidiary of Constellation Energy Group, Inc. (CEG).

Thus, there are four listed entities with some type of operating licensing/ownership responsibility for the Calvert Cliffs Nuclear Power Plant Station.

Proposed Corporate Shell Expansion According to the public notice, the Applicants, Constellation Energy Nuclear Group (on behalf of Calvert Cliffs Nuclear Power Plant, Inc.) and EDF Development, Inc. (EDF Development), propose the following corporate restructuring:

  • EDF Development would acquire 49.99% ownership interest in CENG. The Public Notice does not disclose why or what advantage EDF Development would gain by acquiring a minority ownership in CENG, rather than CEG.

EDF Development is a U.S. corporation organized under the laws of the State of Delaware.

  • EDF Development is a wholly-owned subsidiary of E.D.F. International S.A., a public limited company organized under the laws of France.
  • E.D.F. International S.A. is in turn a wholly-owned subsidiary of [Eacute]lectricit[eacute] de France S.A., a French limited company.
  • In addition, the licenses held by CCNPPI would be transferred to a new legal entity, Calvert Cliffs Nuclear Power Plant, LLC (CCNPP, LLC).
  • CEG, in turn would hold a 50.01% ownership in CENG through two new intermediate parent companies, with an additional intermediate holding company existing between CENG and CCNPP, LLC.

Approval of this restructuring would add seven new corporate entities to the licensing/ownership responsibility for the Calvert Cliffs Nuclear Power Plant Station, including two foreign corporations.

Comment and Request

In summary, no further consideration of the proposed corporate restructuring and indirect transfer of licenses should be undertaken until the NRC has reviewed its facility operation license requirements and determines whether licenses involving multiple levels of wholly-owned subsidiaries provides adequate institutional and corporate control, responsibility, accountability and liability for aging nuclear power plants.

Sincerely, signature David E. Ortman Attorney-at-Law 7043 2 2 nd Ave N.W.

Seattle, WA 98117 deortman(aimsn.com cc: The Honorable Henry Waxman E-mail Properties Mail Envelope Properties (COL102-W44865E6C33F446852B20A I CF560)

Subject:

RE: NRC-2009-0194: Docket Nos 50-217 and 50-318, 74 FR 21413 (May 7, 2009) Attn: Rulemakings and Adjudications Staff Sent Date:

5/22/2009 2:28:27 PM Received Date:

5/22/2009 2:28:27 PM From:

DAVID E ORTMAN Created By:

deortman@msn.com Recipients:

Hearing.Docket@nrc.gov (Hearing Docket)

Tracking Status: None dfstenger@hhlaw.com (dfstenger@hhlaw.com)

Tracking Status: None jmatthews@morganlewis.com (jmatthews@morganlewis.com)

Tracking Status: None Post Office:

phx.gbl Files Size Date & Time MESSAGE 22335 5/22/2009 Options

Expiration Date:

Priority:

ReplyRequested:

Return Notification:

olImportanceNormal False False Sensitivity:

olNormal Recipients received:

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of CALVERT CLIFFS NUCLEAR POWER PLANT, INC.

(Calvert Cliffs Nuclear Power Plant Unit Nos. 1 and 2)

(Calvert Cliffs Independent Spent Fuel Storage Installation)

Docket Nos.

50-317-LT 50-318-LT 72-8-LT ORDER On May 7, 2009, the Commission published a notice of opportunity for hearing in the captioned matter. 74 Fed. Reg. 21,413. The notice explained the process for filing a request for hearing and petition for leave to intervene, id. at 21,413, and for filing written comments on the license transfer application, id. at 21,414. The Commission received an e-mail on May 22, 2009, submitted pursuant to the Federal Register notice, by Mr. David Ortman, Esq., of Seattle, Washington. The e-mail, which is styled as a "Comment and Request," was filed within the stated time period for both requests for hearing and for written comments. See id. at 21,413, 21,414. However, it does not satisfy the Commission's procedural requirements for petitions to intervene, set forth in 10 C.F.R. § 2.309 and identified in the notice, in that the filing addresses neither the Commission's contention admissibility requirements nor Mr. Ortman's interest in the proceeding. Additionally, the filing does not meet the specific requirements of the Commission's "E-Filing rule," which the NRC promulgated in August, 2007, see 72 Fed. Reg. 49,139 (Aug. 28, 2007), and which is specifically incorporated into the notice. See 74 Fed. Reg. at 21,413-14.

Therefore, pursuant to my authority under 10 C.F.R. § 2.346(h), to the extent that the filing is a petition to intervene and request for hearing, I deny the request as procedurally deficient.

However, to the extent that the filing transmits comments on the proposed transfer, pursuant to 10 C.F.R. § 2.1305, 1 hereby refer the filing to the Staff for its consideration in conjunction with the license transfer application.

IT IS SO ORDERED.

For the Commission (NRC SEAL)

IRA/

Annette L. Vietti-Cook Secretary of the Commission Dated at Rockville, Maryland, this 1st day of July, 2009.

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of CALVERT CLIFFS NUCLEAR POWER PLANT, INC.

(Calvert Cliffs Nuclear Power Plant Unit Nos. 1 and 2)

(Calvert Cliffs Independent Spent Fuel Storage)

Docket Nos.

50-317-LT 50-318-LT 72-8-LT CERTIFICATE OF SERVICE I hereby certify that copies of the foregoing ORDER OF THE SECRETARY (RESPONDING TO REQUESTS OF DAVID ORTMAN, ESQ.) have been served upon the following persons by the Electronic Information Exchange and to persons marked with* by electronic mail.

Office of Commission Appellate Adjudication U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 E-mail: ocaamail.resource(,nrc.gov U.S. Nuclear Regulatory Commission Office of the General Counsel Mail Stop O-15D21 Washington, DC 20555-0001 U.S. Nuclear Regulatory Commission Office of the Secretary of the Commission Mail Stop O-16C1 Washington, DC 20555-0001 Hearing Docket E-mail: hearinqdocket(@nrc.qov David E. Ortman, Esq.*

7043 2 2 nd Avenue NW Seattle, WA 98117 E-mail: deortman(cmsn.com E-mail:

OGCMailCenter(anrc.gov

2 Calvert Cliffs Nuclear Power Plant, Unit 1 and 2, Docket Nos. 50-317-LT and 50-318-LT Calvert Cliffs Independent Spent Fuel Storage, Docket No. 72-8-LT ORDER OF THE SECRETARY (RESPONDING TO REQUESTS OF DAVID ORTMAN, ESQ.)

Counsel for the Applicant Hogan & Hartson, LLP Columbia Square 555 Thirteenth Street, NW Washington, DC 20004 Daniel F. Stenger, Esq.*

Amy C. Roma, Esq.

E-mail: DFStenqer(@hhIaw.com acroma(a hhhlaw.com Counsel for CENG Morgan, Lewis & Bockius, LLP 1111 Pennsylvania Ave., NW Washington, DC 20004 John E. Matthews, Esq.

E-mail: jmatthewsa-morqanlewis.com

[Original signed by R. L. Giitterl Office of the Secretary of the Commission Dated at Rockville, Maryland this 1St day of July, 2009