ML19197A018

Attachment to E-Mail from Spyle (Entergy) - Big Rock Point, Excess Property Damage Insurance Exemption, Date: 11/3/1982, Docket Nos. 72-43, 50-155, License No. DPR-6

ML19197A018
Person / Time
Site:	Big Rock Point  File:Consumers Energy icon.png
Issue date:	11/03/1982
From:	Crutchfield D Office of Nuclear Material Safety and Safeguards
To:	Vandewalle D Consumer Power Co
Garcia-Santos N
References
LS05-82-11-005 NUDOCS 8211080181
Download: ML19197A018 (10)

Text

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REGULnTURf LNPORNATIDN DISTRIBUTION SYSTFM (RIBS)

ACCESSION NDR:8£11080181 DUC.DATE: 82/11/03 NOTARIZED: NU DOCKET #

FACJLaso-ibs Big Hock Point nuclear Plant, Consuwers Power Co. 05000155 AUTH.NAME AUTHUR AFFLLIATIUN CRUTCHFIELuyb. Userat1ng Reactors Branch 5 RECIP.NAHL HECIPILNI AFFILIATION VANDLWALLEyD. Consumers Power Co.

SUBJECT:

Forwards exewption from requirements of 10CFRSO.50(WJ re tote} amount of ons1te pronerty damage insurance coverage cammercial newer reactor licensee required to possess.

UISTRIbUTIUh CUBE: SEOIS COPIES RECEIVED:LTR JL ENCL srze:_§5:ii:!2é TITLE: SEP Dist (outga1nar external)

NCTES:NRH/DL/SEP icy. 05000155 RECIPIENT COPIES RECIPIENT COPIES IU CODE/NAME LTIR ENCL ID CUBE/NAME LTTR ENCL EMEH,R. 1 1 INTERLAL: MNUB-QUOO NRR C ALINA HHHQ -ng- tppp pp Her-A QFH I a Hv mo t n HH NRH/DE/CEB NRR/DE/GB HRH/DE/HGEU NRR/DE/MEB NRH/DE/"TEH NRR/DE/SAB HNHHp NRR/DE/SEB NRR/DL/SEPB RF NRR/DL/SEPU SL NRR/DSI/AEB HHHH NRH/DSI/ASB NRR/DSI/CPB NRH/USI/CSB NRP/DSI/ICSB NRR/USI/PSB NRR/DSI/RSB HH REG FILE RGNS EXTERKAL: ACHS DSU USE axe/19 m who m

n I-IO: WHO NRC FDR w-m NOTES: I..- 5-TUTAL NbMUEK UF CUPlES HEHULRLD: LTTR Sc ENCL Sb

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UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. c. 20555 November 3, 1982 Docket No. 50-155 LSOS-BZ-ii-OOS Mr. David VandeWaiie Nuciear Licensing Administrator Consumers Power Company 1945 West Parnell Road Jackson, Michigan 49201 '

Dear Mr. Vandeuaiie;

SUBJECT:

BIG ROCK POINT - excess PROPERTY DAMAGE INSURANCE EXEMPTION Q.

The Commission has issued the enciosed Exemption from certain requirements of 5 50:54(w) of 10 CFR Part 50, in reSponse to your ietter dated, June 22, 1982. This exemption, which is being forwarded to the Office of the Federai Register for pubiication, pertains to the totai amount of onasite property damage insurance coverage a commerciai power reactor iicensee is required to possess.

Sincereiy, ennis M. oruthhfieid, ief Operating Reactors Br ch #

Division of Licensing

Enclosure:

Exemption cc w/encioSure:

See next page

_ SJI/OSOB

I Mr. David J. VandeHa11e November 3, 1982 cc Mr. Paui A. Perry, Secretary U. S. Environmentai Protection consumers Power Company Agency '

212 West Michigan Avenue Federa1 Activities Branch Jackson, Michigan 49201 Region V Office ATTN: Regiona1 Radiation Representative Judd L. Bacon, Esquire 230 South Dearborn Street Consumers Power Campany Chicago, Ii1inois 60604 I 212 West Michigan Avenue

'Jackson, Michigan 49201 Peter B. Bioch, Chairman -

Atomic Safety and Licensing Board .

Joseph Ga110, Esquire U. S. Nuc1ear Regu1atory Commission >>

- Isham, Lincoin & Bea1e Mashington, 0. C. 20555 1120 Connecticut Avenue Room 325 0r%_05car H. Paris Washington. 0. 0.. 20036 Atomic Safety and Licensing Board U. S, Nuciear Regulatory Commission Peter H. Steketee, Esquire Washington, D. C. 20555 505 Peop1es Bui1ding

_Grand Rapids, Michigan 49503 Mr. Frederick J. Shon Atomic Safety and Licensing Board

.Aian S. Rosentha1, Esq., Chairman U. S. N c1ear Regu1atory Commission

' Atomic Safety & Licensing Appeai Board Washington, D. C. 20555 '

0. S. Nuc1ear Regu1atory Commission Washington, D. C. 20555 ' - . ig ROEkaOi t Nuciear Power Plant

<<we... . ATTN: Dave Hoffman Ir-Mr. John 0'Nei11, II FTEht Superintendent ""

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Route 2, Box 44 - Char1evoix, Michigan 49720 -

Map1e City, Michigan 49654 -',.-

h an-n Christa-Maria Mr. Jim E. Mi11s ' Route 2, Box 108C -

Route.2, Box 1080 Charievoix, Michigan -49720 Charievoix, Michigan 49720 Hi11iam J. Scan1on, Esquire Chairman. 2034 Pau1ine Bouievard County Board of Supervisors Ann Arbor, Michigan 48103 Charievoix County Char1evoix, Michigan 49720 Resident Inspector Big Rock Point P1ant O r' cé bf the Governor (2)

- "r:

c/o U.S. NRC Room 1 - Capito1 Bui1ding RR #3, Box 600

. uLansing, Michigan 48913 Charievoix, Michigan 49720 Herbert Semmei Hurst & Hanson

-P_'

founse1 for Christa Maria, et a1. 311 1/2 E. Mitche11 rban Law Institute Petoskey, Michigan 49770 Antioch Schooi of Law 2633 16th Street, NH Washington, D. C. 20460

I 1 .

Mr. David J. VandeWaiie' November 3, 1982 cc Dr. John H. Buck Atomic Safety and Licensing Appeai Board U. S. Nuciear Reguiatory Commission Washington, D. c. 20555 Ms. JoAnn Bier 204 Ciinton Street .

Charievoix. Michigan 49720 '

Thomas 5. Moore .

Atomic Safety and Licensing Appeai Board U. S. Nuciear Regu1atory Commission Washington, D. c. 20555 '

James G. Kepp1er, Regionai Administrator Nuc1ear Reguiatory Commission, Region III 799 Rooseveit Road GTen Eliyn, Ii1inois 60137

{I

7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of g '

CONSUMERS POHER COMPANY  ; Docket No. 50-155 (Big Rock Point Plant) )

EXEMPTION I.

consumers Power Company (the licensee) is the holder of Facility Operating License No. DPR-6 which authorizes operation of the Big Rock Point Plant. This license provides, among other things, that it is subject to all rules, regulations and orders of the Commission now or hereafter in effect. The facility is a boiling water reactor rated at 72 MW(e) at the licensee's site located in Charlevoix County, Hichigan.

II.

The regulation, 10 CFR 50.54iw), requires that each commercial pOwer reactor licensee shall, by June 29, l982, take reasonable steps to obtain on-site property damage insurance available at reasonable cost and on reasonable terms from private sources or to demonstrate to the satis-faction of the Nuclear Regulatory Commission (the Commissionli RC) that '

it possesses an equivalent amount of protection covering the facility,

'provided, among other things, that "this insurance must haVe a minimum coverage limit no less than the combined total of (i) that Offered by either American Nuclear Insurers (AMI) and Mutual Atomic Energy Reinsurance geH/oSO/SV

7590-01 Pool (MAERP) jointly or Nuclear Mutual Limited (NML); Plus (ii) that offered by Nuclear Electric Insurance Limited (NEIL), the Edison Electric Institute (EEI), AMI and MAERP jointly, or NML as excess preperty insurance."

On June 22, 198?, the licensee filed a Request for Exemption from provision "(ii)" of 10 CFR 50.54iw). In support of this request, the licensee submitted a study indicating that decontamination and cleanup costs following the "worst credible accident would not exceed $500,000,000.

The licensee indicated that it would obtain primary property insurance covering damages up to $450 million (subsequently increased by the carrier to $500 million} but that it did not believe that coverage in excess of $500 million was justified at this time. In reviewing Consumer's exemption request, the staff determined that additional information was .

required. This information was solicited by letter to the licensee dated July 12, 1982. The licensee has responded to this request by letter

dated August 10, l982.

- Because of the additional information provided by the licensee in its August 10th letter, the Commission is able to consider the exemption request on its merits. Both in its study and its response to staff's questions, 0onsumers Power has postulated a maximum credible accident which results in releases of 100% of the noble gases, 100% of the iodines, 100% of the cesiums and about 10% of the other solids. The licensee I states, This release fraction is consistent with HASH 1400 (Appendix V, Table VZ-l), where the worst case (PHR l) resulted in a release of 90%

of the noble gases, 70% of the halogens, 40% of the cesiums and 0-40%

7590-01 of the other solids." The licensee then calculates the quantity of radionuclides available for release as a function of core thermal power and contrasts this to the Three Mile Island accident. Detailed, item-by-item TMI decontamination cost estimates were then used as a basis for estimating demontaminatjon costs after a "maximum credible accident" at Big Rock Point.

The assumptions and methodology used by the licensee in its study provide a reasonable attempt to estimate decommissioning costs and appear to be compatible with preliminary findings of a study developed for the Commission (Technology, Safety and Costs of Decommissioning at Reference

-Light Hater Reactors Involved in Postulated Accidents, NUREG/CR~2601, Pacific Northwest Laboratnry, to be published). This report Considers 2 three accident scenarios with a TMI~2 type accident considered to be of intermediate severity. This information indicates that although there is'some relationship between size of a reactor and accident cleanup costs, certain of the major costs involved with accident cleanup -- such as defueling a damaged reactor, activities to maintain a facility in cold shutdown, and construction of new treatment facilities -- are not strictly power level dependent. The licensee has indicated lower expected costs overall for cleanup of Big Rock Point because of its small size. However, it has correctly indicated those steps in the cleanup process, as used in ,

the examples above, wnere cost is not directly related to core size.

Additionally, the Big Rock Point plant at 72 Hwie) [240 MH(t)] is below the limit used to exclude small plants from certain NRC requirements.

For example, 10 CFR Part l40.ll excludes reactors rated below 100 MH(e) from the full requirements of deferred premium assessments of the

7590-01 Price-Anderson iiabiiity insurance and indemnity program. Likewise, 10 CFR Part 50, Appendix E aliows iicensees with reactors rated at iess than 250 Mhit) to seek to reduce the size of their Emergency Pianning Zones if they so wish.

The licensee has aiso indicated that it has contacted various parties

' to obtain either insurance or some other method of protection such as a iine or ietter of credit to obtain the $67 miiiion required excess pro-tection. _The cost of this would range from $201,000 to $422,000 per year depending on the method and carrier'chosen. When such excess insurance or protection is not required to cover the costs of cieanup of a maximum credible accident,, the NRC staff agrees with the 1icensee's assessment that the cost of such insurance or protection is too burdensome.

In sum, the Commission beiieves that the 1icensee has provided adequate justification for being exempted from the excess insurance requirements of 10 CFR 50.54lw)(1)(ii). Aithough the Commission's information base on the

'reiation between reactor size and accident decontamination cost has not I yet been compieted, sufficient information exists to determine that decontamination and cieanup costs occurring as a resuit of an accident at

_ a reactor of Big Rock Point's smaii size wouid, with a reasonabie degree of assurance, be covared by $500 miiiion insurance. Further, within the next year the issue of accident cost vis-a-vis reactor size wiii be addressed in the Commission's upcoming revised ruiemaking on property insurance (see 47 FR 27371). By that time, the Commission wiil be better abie to determine whether and at what point aii smaii reactors shouid be exempted from certain property insurance requirements. Because of the reiativeiy short time untii

7590-01 such a decision, it is even 1ess 1ike1y that a reactor of Big Rock Point's' size wouid require insurance exceeding $500 miiiion to protect pubiic health and safety adequateiy.

Accordingiy, the Commission has determined that pursuant to 10 CFR 50.12 an exemption is authorized by 1aw and wiii not endanger iife or property or the common defense and security and is otherwiSe in the pubiic interest.

Therefore, the Commission hereby approves the foilowing exemption:

The licensee is exempt unti] further notice from the requirements of 10 CFR 50.54(w)(1)(ii), with respect.to excess property insurance offered by Nuciear Electric Insurance Limited (NEIL), the, Edison Eiectric Institute (EEI), American Nuciear Insurers (AMI) and Mutual Atomic Energy Reinsurance Pooi (MAERP) joint'iy, or uuciear Mutuai Limited (NML). '

The licensee continues to be required to maintain, at a minimum, totai primary insurance coverage or equivalent protection offered by.ANI and MAERP jointly or NHL pursuant to 10 CFR 50.54(w)(1)(i).

7590-01 The NRC staff has determined that granting this exemption wiii not resuit in any significant environmentai impact and that pursuant to 10 CFR Si.5(d)(4) an environmentai impact statement or negatiVe declaration and environmentai impact appraisal need not be prepared in connection with this action. - I - .

This exemption is effective upon issuance.

FOR THE NUCLEAR REGULATORY COMMISSION Robert A. Purple, Actingnirector Division of Licensing Office of Nuciear Reactor Reguiation Dated at Bethesda, Maryiand, this 3rd day of November, 1982.