ML20246D164

Discusses Review of Final Rule, Extension of Time for Implementation of Decontamination Priority & Trusteeship Provisions of Property Insurance Requirements

ML20246D164
Person / Time
Issue date:	11/25/1988
From:	Meyer D NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM)
To:	Wood R Office of Nuclear Reactor Regulation
Shared Package
ML20245H200	List: ML20245H195 ML20246D064 ML20246D083 ML20246D087 ML20246D133 ML20246D164 ML20246H642 ML20246H650
References
FRN-53FR36338, RULE-PR-50 AC26-2-08, AC26-2-8, NUDOCS 8905100141
Download: ML20246D164 (1)

Text

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M -2 f A UNITED STATES NUCLEAR REGULATORY COMMISSION y g#(8 g r,,

7 WASHINGTON,0. C. 20555

/ l g ..v... / nov 2 s was MEMORANDUM FOR: Robert S. Wood Policy Development and Technical Support Branch Program Management and Analysis Staff Office of Nuclear Reactor Regulation FROM: David L. Meyer, Chief Regulatory Publications Branch Division of Freedom of Information and Publications Services Office of Administration and Resources Management

SUBJECT:

REVIEW 0F FINAL RULE, " EXTENSION OF TIME FOR THE IMPLEMENTATION OF THE DECONTAMINATION PRIORITY AND TRUSTEESHIP PROVISIONS OF PROPERTY INSURANCE REQUIREMENTS" The Regulatory Publications Branch (RPB) has reviewed the final rule that extends the implementation date for licensees to comply with the stabilization and decontamination priority and trusteeship p'rovisions. We have enclosed a marked copy of the rule and offer the following comments.

The Office of the Federal Register requires that the sumary generally describe for the reader (1) what the rule does, (2) who it affects, and (3) why the action is being taken without using citations of any type. Any specific information should be included with Supplementary Information. Therefore, we have slightly revised the semmary paragraph.

As is routine, we supplied the Records Management Branch a copy of the rule to l review for compliance with the Paperwork Reduction Act. You should consult  !

Brenda Shelton (28132) to ensure that the paperwork statement is appropriate. '

In compliance with the Office of the Federal Register publication requirements, we have deleted the line underscoring the term Federal Register.

If you have any questions concerning this review, please contact Alzonia Shepard of rqy staff on extension 27651.

an.w David L. Meyer, Chief i Regulatory Publications Branch i Division of Freedom of Information and  !

Publications Services i

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Mr. Max J. Clausen uGCM ",

Senior Technical Assistant to Chairman Zech M pp7 s

U.S. Nuclear Regulatory Commission Washington, D.C. 20555 ,

Dear Mr. Clausen:

fiY p I appreciate your sending me a copy of the petition which f

requests that the NRC rescind paragraphs (x) and (y) of p cuc .

Section 50.54 of Part 10 of the Code of Federal Regulations. ,

Paragraph II, Grounds for the Petition, reads:

"The petitioner cites several cases of hazardous practices where, the petitioner asserts, the licensee has violated Federal Regulations at the Dresden and Quad Cities Nuclear Power Plants, owned by Commonwealth Edison Company, Chicago, Illinois. The petitioner believes that these practices could lead to an accident similar to the one at Three Mile Island, Unit 2. .....

hy April 18 letter describes how Commonwealth Edison's Poljcy for operating nuclear power plants can cause a nuclear fuel meltdown - an accident like Three Mile Island (page 2, next to last paragraph). It is this Policy that can lead to an accident like Three Mile Island.

Commonwealth Edison's Policy for operating nuclear power plants is published in a Vice President's Instruction. This Instruction authorizes a Senior Operator to turn off a safety system in an emergency before the system has finished its job. Turning off a nuclear plant safety system in an emergency before the system has finished it job, can lead to an accident similar to the one at Three Mile Island, Unit 2.

During Proceedings before the Illinois Commerce Commission on September 15, 19 8 '/ , Commonwealth Edison's attorney cited 10 CFR 50.54 paragraphs tx) and (y), as authority for this Policy. The Policy applies to all of the Company's nuclear power plants. Thus Commonwealth Edison risks an accident like the accident at Three Mile Island Unit 2, at twelve nuclear power plants.

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I am enclosing a copy,of my February 24, 1988, letter to Mr.

Weil, Investigation and compliance Specialist, in Region III.

This letter contains a copy of Commonwealth Edison's .,

defective policy.

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Thanks again for your letter.

Sincerely yours, .

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i Charles Young  !

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a i DOChl* %: - rM 1 BRAht" j cxtcuwe omces September 27, 1988 U.S. Nuclear Regulatory Commission ATTN: Docketing and Service Branch Washington, D.C. 20555 i

i l RE: Proposed Rule Extending Time for Implementation of f l Decontamination Priority and Trusteeship Provisions of the Property Insurance Requirements 10 CFR 50.54(w)

Gentlemen:

Wisconsin Power and Light Company,is a co-owner and licensee of the Kewaunee Nuclear Power Plant located in the Town of Carlton, Wisconsin. We are advised that the NRC intends to publish a proposed rule that will extend the October 4 deadline for the incorporation of I

requirements relative to the payment of property damage insurance proceeds into policies of property insurance. We are further advised that it is intended that generic action will be taken prior to October 4 to relieve licensees from that requirement.

I would appreciate it if you would confirm that such action is contemplated. If our information is incorrect, we would appreciate your advice as to what action a licensee should take relative to the application of the requirement.

Very truly yours, I

n O. a .G Eugene O. Gehl $' * '.-

Executive Vice President '

and General Counsel EOG:jb , ,

cc* Visconsin Public Service Corporation ATiri. Linu: A. Stoll

, Madison Gas and Electric Company .

ATTN: Donald J. Helfrecht .

Wisconsin Power and Light Company ATTN: Steve Bohlman .'

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RICHARD G.GILMORE ssason vicsremotoast PINAhes October 3, 1988 Docket Nos. 50-277 50-278 50-352 l

l Mr. Samuel J. Chilk, Secretary U. S. Nuclear Regulatory Commission Washinaton, DC 20555 .

Attention: Docketing and Service Branch Re: Notice of Proposed Rule 10 CFR 650.54(w)(5)(i)

Dear Mr. Chilk:

On September 19, 1988, the NRC published a proposed rule in the Federal Reaister (53 Fed. Reg. 36338) that would amend the implementation schedule for the stabilization and decontamination priority and trusteeship provisions of its property insurance regulations. (10 CFR S50.54(w)(5)(i). The effective date of those provisions would be changed from October 4, 1988 to April 4, 1990. This action respends to concerns about the present rule, adopted on August 5, 1987 (52 Eed. Reg. 28963), that have been expressed to the NRC by power reactor licensees, industry groups, and nuclear property insurers and which are recited in the NRC's Notice of Rulemaking. As the NRC is aware, insurance policies fully 1 satisfying the decontamination priority payment and j independent trustee requirements are not available er.d trust a a r r anger.ien t e cannot ba ast abli:hed by Cd.ober 4. 13 9 B. 1 I

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Mr. Samuel J. Chilk, Secretary October 3, 1988 Since the comment period for this proposed rule will not expire until after the October 4, 1988 deadline, the proposed rulemaking does not provide licensees with timely relief from the deadline. It is Philadelphia Electric Company's under-standing that NRC will issue exemptions from the October 4, 1988 deadline on its own initiative in each docket and is discouraging the filing of individual exemption requests. The purpose of this letter is to set forth our understanding of actions that are intended by the NRC and our reliance on the assurance that we will be relieved from the October 4, 1988 deadline. While no further action is anticipated at this time, we will contact the NRC Staff to determine the appropriateness of submitting a utility specific exemption application if our understanding of the NRC's intentions in this matter proves erroneous.

Ve r y urs, I

Richard . Gilmore cc: W. T. Russell, Regional Administrator T. J. Kenny, Senior Resident Inspector T. P. Johnson, Resident Inspector O

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Secretary 63 M 36I!

U. S. Nuclear Regulatory Commission Washington, D.C. 20555 I

Attention: Docketing and Service Branch  ;

Re: Extension of Time for the Implementation of the Decontamination Priority and Trusteeship Provisions of Property Insurance Requirements (53 Fed. Reg. 36338, SeDtember 19, 1988)

Dear Mr. Chilk:

On September 19, 1988, the Nuclear Regulatory Commission j published in the Federal Register a notice of proposed  ;

rulemaking, captioned as above. The Commission proposes to amend  !

the implementation schedule for the stabilization and decontamination priority and trusteeship provisions of its property insurance regulations in 10 CFR 550.54 (w) (5) (i) . to  !

change the effective date from October 4, 1988 to April 4, 1990. ,

On behalf of the Edison Electric Institute ("EEI") and the  !

Nuclear Utility Management and Resources Council ("NUMARC"), we l submit the following comments on the Commission's proposal.

As reflected in the subject notice, EEI and NUMARC (along with a number of NRC licensees listed in the petition) have filed a petition for rulemaking (PRM-50-51A, notice of which was  !

published in the same edition of the Federal Register at p. '

36335). The EEI/NUMARC petition seeks, among other things, relief of licensees from the independent trustee and related-priority requirements pending consideration of modifications to .

the Commission's property insurance rule (10 CFR 550.54(w)) We continue to believe that the independent trustee provisions are unworkable and potentially counterproductive to the NRC's' goal of assuring the prompt availability of funds for on-site cleanup following an accident. at a facility. Accordingly, we would take this cpportunj + y to t.Jn that the ch.snges in the reguAauien=

propowd in c.,ur petition L: :tsda.

Thi: would include deletion of the independent trustee requirement and the substitution of a  ;

i requirement to maintain liability-type coverage for the on-site j[//D/0Y.M eyp.

d' cleanup obligation, which coverage may be combined in a single policy with property insurance.

Consistent with our petition for rulemaking, EEI and NUMARC support the concept of extending the October 4, 1988 deadline for obtaining insurance that complies with the independent trustee and priority requirements to afford time for the Commission to consider their petition for rulemaking (and the other filings to the same or similar effect, viz: PRM-50-51 and PRM-50-51B). We note, however, that the proposed rule would extend the implementation date to a date certain. As noted above, EEI and NUMARC had requested suspension of the pertinent requirements or that licensees be otherwise relieved from them cendina comoletion of the rulemakina. While the additional eighteen months now appears adequate for the Commission to complete its consideration of the pending petitions, the Commission should be prepared to grant any such further extension that may reasonably be required as the new deadline approaches for it to carry this process to its conclusion.  ;

Ve truly yours, O ' bd N J. Knotts, Jr.

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DOCKET NUMBER U.S. Nuclear Regulatory Commission ATTN: Docketing and Service Branch PROPOSED RUI.E b EO i Washington, D.C. 20555

.5 3/:~A 36 'se l RE: Proposed Rule Extending Time for Implementation of De: contamination Priority and Trusteeship Provisions of the Property Insurance Requirements 10 CFR 50.54(v)

Gentlemen:

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I would appreciate a response to my attached letter of September 27. .

Very truly yours, A6 }

Eugene O. Gehl Executive Vice President and General Counsel EOG:jb Attachment V.s ; .' ' ; < .si '~

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