ML20002B482

Forwards Joint Ownership Agreement, & Amend 1 to Agreement Between Sc Electric & Gas Co & Sc Public Svc Authority Per 801125 request.CPPR-94,notice of Issuance & Availability,Util & Eia Encl

ML20002B482
Person / Time
Site:	Summer
Issue date:	12/05/1980
From:	Knotts J DEBEVOISE & LIBERMAN
To:	Grossman H, Hooper F, Linenberger G Atomic Safety and Licensing Board Panel
Shared Package
ML20002B483	List: ML20002B482 ML20002B487 ML20002B490 ML20002B493 ML20002B495
References
ISSUANCES-OL, NUDOCS 8012110659
Download: ML20002B482 (77)

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gro,3 857-9831 December 5, 1980 3

J l

Herbert Grossman, Esq.

Dr. Frank F.

Hooper Chairman, Atomic Safety and School of Natural Resources l

Licensing B'.ard University of Michigan U.S.

Nuclear Regulatory Ann Arbor, Michigan 48109

\\

Commission Washington, D.C.

20555 Mr. Gustave A.

Linenberger j

Member, Atomic Safety and Licensing Board Panel U.S.

Nuclear Regulatory Commission Washington, D.C.

20555 Re:

South Carolina Electric & Gas Company and South Carolina Public Service Authority (Virgil C. Summer Nuclear Station) Docket No. 50-395 OL Gentlemen:

At the November 25, 1980 prehearing conference in the captioned matter, you requested that we provide the Board with copies cf the Joint Ownership Agreement and/or other formal agreements addressing the matter of allocation between the owners of technical and operational control of the project.

Enclosed herewith is a copy of the Joint Gwnership Agreement between South Carolina Electric & Gas Com >any and the South Carolina Public Service Authority, who are the co-owners and co-applicants in this proceeding.

As you will see from Section 2.07 (as well as Section 3.03) cf the Joint Ownership Agreement, South Carolina Electric & Gas Company has retained sole technical direction and control over the Virgil C. Summer Nuclear Project.

This is of course a desirable arrangement from the standpoint of NRC licensing and regulation, in that there is no division of responsibility for decisions affecting the public health and safety nor any division in accountability 18032110(,67 G

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Herbert Grossman,TEsq.

Mr.-Gustave A.'Linenberger

^^

Dr. Frank F.' Hooper

. December'5, 1980 lPage Two to'the'NRC.

What'this means from the standpoint of findings E

to beLmade:by'the appropriate body'of-the NRC 1/ is that the

only

, questions which need:be. inquired into with regard to the Public Service Authority are'its' financial qualifications

.(10 C.F.R. 50. 33 (f) ) and such formal matters as the citizenship of its officers and directors (10 C.F.R. 50.33 (a) - (d)).

You also inquired at_the November. 25,-1980 prehearing conference as to.the subject matter of Amendment No. l to the construction. permit.

' Enclosed herewith please find a copy of 1 said amendment - (and a related_ public notice) which, pursuant to a_ decision by the Appeal Board. dated April 13, 1973, deleted condition 2.E.5 which would have required SCE&G to establish a monitoring. program regarding the pasture-cow-milk pathway.

For your information, we are enclosing a copy of a request dated November 26, 1980 for a further extension of the latest date of completion'as presently set forth in the construcrion-permit.

For.Mr. Bursey's benefit, we might note that this application is provided for information'only; no action by the p

Board (which: has been constituted to. preside in the operating license' proceeding) is necessary or appropriate with respect to amendnents to the construction permit, which are processed

-by the.NKC Staff (10 C. F. R.

S2. 717 (b) ).

Finhlly, applicants stand ready, as requested, to provide management witnerses and witnesses on hydrological matters.to respond-to Board questions at the public hearing.

If the Board has specific ques-ions or general areas of inquiry on hydro-logical matters it. mind beyond that already specified 1/

As_we understand the intervenor's contention, he does not contend that the Public Service Authority is not financially qualified or lacks reasonable assurance of obtaining funds for decommissioning; rather this allegation seems to be directed at South Carolina Electric & Gas Company.

If'it is correct that the' financial qualifications of the Authority are not a contested issue, then, unless the Board desires to make the matter its own issue, there will be no need for evidence,. findings, or conclusions with respect to the Authority.

_The appropriate findings can be made by the

. Director'of Regulation and/or the Commission in accordance with the treatment of uncontested matters in operating license proceedings E(10 C.F.2.

S2.760a) and current practice for_the issuance of-operating licenses.

o s

Herbert-Grossman, Esq.

Mr._Gustave A..Linenberger Dr. Frank F. Hooper December 5, 1980 Page Three (i. e., the interaction of the' Summer-Project.and the Fairfield pumped' storage facility)', we would'be glad to have them at least

(

a-few weeks in advance of the hearing so that we may be sure to have the appropriate person or persons on hand.

Moreover,

.if a written response to Board inttrrogatories is desired on these matters, we~would be glad to provide such as well.

Sino rely,

/

J sep B.

Knotts, Jr.

D BEVOISE & LIBERMAN 1200 Seventeenth Street, N.W.

Washington, D.C.

20036 Attorney for South Carolina Electric & Gas Company c.

JBK/pv cc:

Fervice List

Enclosures:

Joint Ownership Agreement Amendment No. 1 to Joint Ownership Agreement Construction Permit Amendment No'.

1

- Letter dated November 26, 1980, Nichols to Denton M

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i

. SOUTH CAROLINA ~ ELECTRIC & GAS COMPANY' i

AND SOUTH CAROLINA PUBLIC SERVICE AUTHORITY AMENDMENT NO. 1

.(Uranium-and Nuclear. Fuel Ownership Agreement)

.to-JOINT OWNERSHIP AGREEMENT for Virgil C. Summer Nuclear Station Unit #1 June 1, l'576

~j-This' Amendment'No. 1 to the' Agreement dated October 18, 1973 is entered as of the ist. day of June 1976 by and between South Carolina Electric & Gas Company - (" Company") and South Carolina Public Service Authority

(" Authority"), (hereinafter referred to collectively as the " Parties"):

RECITALS The company has entered into certain contracts for the acquisition of uranium with various suppliers and for the fabrication of nuclear fuel.

Company and the Authority have determined that it is in their best interest to set forth the mutual right's and obligations of the Parties with regard to ownership of uranium and nuclear fuel.

NOW, THEREFORE, the Parties mutually agree as follows:

1.

DEFINITIONS 1.01 " Agreement" means the Joint Ownership Agreement for Virgil C. Summer Nuclear Station dated October 18, 1973, as amended herein.

The terms used in said Agreement are incorporated into and made a part of this Amendment except as they may be specifically qualified or redefined.

1.02 " Amendment" means this Amendment No. 1 to the Agreement.

1.03 " Costs of Nuclear Fuel" means the cost of acquisition, design, ownership, engineering, licensing, fabrication, enrichment, processing, reprocessing, transportation, insurance, waste management, storage and safeguards of Uranium, Nuclear Fuel and Spent Fuel and other costs associated with such fuel.

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~1.041" Energy" means Energy Subsidiary, Inc., a wholly-owned corporat' ion of the Company which is authorized to own and hold title to Uranium in behalf of the Parties.

1.05 "ERDA" means Energy Research and Development Administration, an agency of the United States of America, or any successor agency.

1.0'

"'iclear Fuel" means " Fuel" as defined in Section 1.6 of the Agreement and includes Uranium, plutonium and other radioactive compounds that have been fabricated for use in a nuclear-reactor and all contracts relating thereto.

1.07 " Spent Fuel" means Nuclear Fuel that has been removed from the nuclear reactor at the conclusion of its useful life' as fu :1 for a nuclear reactor and all contracts relating thereto.

1.08 " Uranium" means compounds of Uranium in any form or any isotope whatsoever whether of domestic or imported origin, natural, enriched, processed, or fabricated as Nuclear Fuel or as Spent Fuel, and all products of such Uranium including plutonium, wastes, and by-product elements before or after use in a nuclear reactor and all contracts relating thereto.

1. 09 "Westinghc use" means Westinghouse Electric Corporation.

1.10 " Westinghouse Nuclear Fuel Contract" means the Contract between Company and Westinghouse dated June 4, 1973, with an effective date of December 18, 1970, which was assigned under the Agreement by Company to Authority on November 30, 1973 according to the Parties' respective Ownership Shares.

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2.

AGREEMENT 2.01 The. Agreement as amended herein shall govern the rights of the Parties mutatis mutandis.

2.02 The Parties agree that they shall own all Uranium and Nuclear Fuel as tenants-in-common in accordance with Section 12 of the Agreement.

2.03-The Parties agree that reimbursement for costs of acquisition and ownership of Nuclear Fuel including enrichment

~under Company's enrichment contract with ERDA shall be made in accordance with Section 6 of the Agreement and shall be treated for the 'purjoses of this Amendment as a " Cost of Construction" as otherwise defined in Section 1.02 of the Agreement.

2.04 The Authority further authorizes and designates Company, and Company agrees to so act, as its agent for the acquisition and ownership of Uranium and as agent for the administration of the Westinghouse Nuclear Fuel Contract including all necessary agreements with ERDA concerning enrichment.

The Company is further authorized to enter into agreements for the sale and exchange of Uranium so that Uranium in the enrichment process will meet requirements of ERDA concerni.

enrichment of imported Uranium.

2.05 Authority authorizes company to delegate to Energy the functions of acquisition and ownership of Uranium and Nuclear Fuel as specified in Sections 2.02 and 2.04, above... _

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2.06 Company will cause Energy to give written recognition of the Authority's one-third undivided Ownership Interest in such Uranium and Nuclear Fuel and contracts therefor; and, such other and further assurances and documents including a security interest therein as may be reasonably necessary as provided in.Section 27.02 of~the Agreement.

2'.07 The amount to be paid by the Authority for its Ownership Share of the Uranium and Nuclear Fuel will be no more than if title had originally vested in SCE&G.

2.08 Authority ratifies the actions taken to date by Company'and Energy in purchasing Uranium.

IN FITNESS WHEREOF, the Parties hereto have caused ;-his Agreement-to be executed in their corporate names and their corporate seals affixed, all by the proper officer duly authorized thereunto, as of the day and year first here-inabove written.

SOUTH CAROLINA ELECTRIC & GAS COMPAif

[ SEAL]

/S/

V.

C.

SUMMER V.

C. Summer, Senior Vice President Attest:

By /S/

H.

M.

BRYANT H. M.

Bryant, Secretary SOUTH CAROLINA PUBLIC SERVICE AUTHORITY

[ SEAL}

/S/

WILLIAM C.

MESCHER Executive General Manager Attest:

By

/S/

L.

P.

DORMAN Secretary

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