ML20205Q615

Summary of 990413 Meeting with Boston Edison Co & Entergy Nuclear Generating Co Re Sale & Transfer of Pilgrim Nuclear Power Station from Boston Edison Co to Entergy Nuclear. List of Attendees & Draft Order & Cover Ltr Encl

ML20205Q615
Person / Time
Site:	Pilgrim
Issue date:	04/15/1999
From:	Wang A NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
References
NUDOCS 9904210328
Download: ML20205Q615 (12)

Text

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April 15,1999 LICENSEE: BOSTON EDISON COMPANY FACILITY: PILGRIM NUCLEAR POWER STATION

SUMMARY

OF MEETING GN APRll13,1999, TO DISCUSS SALE AND TRANSFER OF PILGRIM FROM BOSTON EDISON COMPANY TO ENTERGY hiUCLEAR GENERATION COMPANY On April 13,1999, the staff met with Boston Edison Company (BECo) and Entergy Nuclear Generation Company (Entergy Nuclear) to discuss the sale and transfer of the Pilgrim Nuclear Power Station (Pilgrim) from BECo to Entergy Nuclear. Enclosure 1 is the attendance list. The NRC staff asked what the time table is for the sale and transfer in order to determine the NRC's review milestones. The licensee stated that the sales agreement does not allow them to settle during the outage, currently planned for May 8 to June 4,1999. While the licensee could not provide an exact closure date, the licensee felt the end of the week of April 19,1999, is probably the latest they could hope to settle prior to the outage and have an orderly transition of owners. If this date cannot be met, the settlement would likely be put off until after the outage.

The staff provided a draft of the cover letter and order for discussion (Enclosure 2), Based on these discussions, the staff agreed to reconsider conditions 3 and 4. The licensee was asked to provide additional information regarding financial qualifications of Entergy Intemational Limited. The iMensee agreed to discuss with the Massachusetts Attomey General, a letter providing a cor.ditional withdrawal of his request for intervention based on a condition in the order regarding the utilization of the $50 million contingency fund. This would allow the staff to remove condition 6, which would modify tne draft order regarding settlement of the request for intervention. The licensee also agreed to provide the necessary " documentary evidence" of appropriate insurance as determined by the staff. The licensee proposed some editorial changes to the order. If the licensee can provide the requested information expeditiously, the staff expects to be able to support the schedule discussed above.

Sincerely,

/s/

Alan B. Wang, Project Manager, Section 2 Project Directorate l Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosures:

1. List of Attendees

2. Draft Version of Order Approving Transfer cc w/encis: See next page DISTRIBUTION ^1W h O)

See attached page OFFICE PDI-2/PM 1 PDI-2/LA PDI-2/SC NAME AWang:rtW TClarkb JClibrd DATE $/Y99 N/b99 d d /99 OFFICIAL RECORD COPY DOCUMENT NAME: MTS4-19.WPD 9904210328 990415 *

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R t UNITED STATES j6,{)Zi( l j NUCLEAR REGULATORY COMMISSION o '. ^ l 5 ' S WASHINGTON, D.C. 20555 0001 April 15,1999 LICENSEE: BOSTON EDISON COMPANY FACILITY: PILGRIM NUCLEAR POWER STATION

SUMMARY

OF MEETING ON APRIL 13,1999, TO DISCUSS SALE AND TRANSFER OF PILGRIM FROM BOSTON EDISON COMPANY TO ENTERGY NUCLEAR GENERATION COMPANY On April 13,1999, the staff met with Boston Edison Company (BECo) and Entergy Nuclear Generation Company (Entergy Nuclear) to discuss the sale and transfer of the Pilgrim Nuclear Power Station (Pilgrim) from BECo to Entergy Nuclear. Enclosure 1 is the attendance list. The NRC staff asked what the time table is for the sale and transfer in order to determine the NRC's review milestones. The licensee stated that the sales agreement does not allow them '

to settle during the outage, currently plannea for May 8 to June 4,1999. While the licensee could not provide an exact closure date, the licensee feit the end of the week of April 19,1999, is probably the latest they could hope to settle prior to the outage and have an orderly transition of owners. If this date cannot be met, the settlement would likely be put off until after the outage.

The staff provided a draft of the cover letter and order for discussion (Enclosure 2). Based on these discussions, the staff agreed to reconsider conditions 3 and 4. The licensee was asked to provide additionalinformation regarding financial qualifications of Entergy Intemational Limited. The licensee agreed to discuss with the Massachusetts Attomey General, a letter providing a conditional withdrawal of his request for intervention based on a condition in the order regarding the utilization of the $50 million contingency fund. This would allow the staff to remove condition 6, which would modify the draft order regarding settlement of the request for i intervention. The licensee also agreed to provide the necessary " documentary evidence" of appropriate insurance as determined by the staff. The licensee proposed some editorial l changes to the order. If the licensee can provide the requested information expeditiously, the ,

l staff expects to be able to support the schedule discussed above. l Sincerely, .

l Alan B. Wang, Project Manager, Section 2 l l Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosures:

1. List of Attendees

2. Draft Version of Order Approving Transfer cc w/encis: See next page

O Mr. Ron Ledgett Executive Vice President Boston Edison Co. )

800 Boyleston Street Boston, MA 02199 l Ms. Mary Lampert, Director l

Massachusetts Citizens for Safe Energy 148 Washington Street -

, Duxbury, MA 02332 l

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1 DISTRIBUTION w/ Enclosures 1 & 2 Docket File PUBLIC PDI-2 Reading AWang OGC ACRS E-Mail w/ Enclosure 1 SCollins/RZimmerman BSheron JZwolinski/SBlack JClifford TClark GShear MDusaniwskyj RWood SUttal SHom CAnderson, RGN-l

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LIST OF ATTENDEES SALE AND TRANSFER OF PILGRIM NUCLEAR POWER STATION APRIL 13.1999 NAME ORGANIZATION A. Wang NRC/NRR J. Clifford NRC/NRR R. Wood NRC/NRR M. Dusaniwskyj NRC/NRR S. Uttal NRC/OGC S.Hom NRC/OGC D. Lewis Shaw, Pittman, Potts & Trowbridge D. Levanway Wise Carter Child & Caraway S. Bethay Entergy C. Wells Entergy ,

J. Fulton Boston Edison J. Alexander Boston Edison - Pilgrim l

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l ENCLOSURE 1

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J'4 UNITED STATES j

p j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.c. 205 %-0001 Mr. Theodore A. Sullivan Jerry W. Yelverton Vics President Nuclear and Station Director President and Chief Executive Officer Boston Edison Company Entergy Nuclear Generation Company

Pilgrim Nuclear Power Station 1340 Echelon Parkway RFD #1 Rocky Hill Road Jackson, LA 39213 Plymouth, MA 02360

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W ORDER AP 6NG TRANSFER OF LICENSES AND CONFORMING AMENDMENTS gem ve % y gr@? y Q g%

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. Edison Compa%(Boston Edison)W Aw V7~ P dk .% W is owner of kPilgrim NGelear Power Station d$t ny, YdfyN5 h k $ 3;; % Y!@}EIk h (Pilgrim),'"an k ,NAis D. autrictizedh. to possess, N use, and operate"tha D facility as re License No. DPR-36 86ston Edison also$ Nbis the hMier of Materials License q%% v4 q

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which a 'zes BosM Edso ss, use; and transport certain materials I%fithe form of i

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contamination on reactor Corn

" M t The Aton@kk@h %,Comhission issued Op$

erating W Q g "W Rif Q %- Q License No. DP435 on September 15,1972; pursuant to Part 50 of Title 10 of the Code'o~ f k Dh '$EN - Mt Federal Regulations"(10 CFR P5rt 50kMaterials License No. 20-07626M was issued on Ma M h $$ $ \$g  %$Y March 21,1997, pursuant to 10 CFR Parts ,30,40, and;70&The facility is located in Plymouth l

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County, on the southeast' coast of trie'. State # Massachusetts.

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Under cover of a letter dated December 21,1998, Boston Edison and Entergy Nuclear Dj7 Generation Company (Entergy Nu r) jointly submitted an application requesting approval of  ;

the proposed transfer of Operating License No. DPR-35 and Materials License No. 20-07626-04 from Boston Edison to Entergy Nuclear. The application also requested approval of conforming amendments to reflect the transfer. The application was supplemented by

T' submittals dated January 28, February 18, and April 2,1999. The applicati9n and the supplements are herein after collectively referred to as "tha application" unless otherwise

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indicated.

Boston Edison is a wholly-owned subsidia pergy, a Massachusetts business h%f) trust. Entergy Nuclear, a Delaware corp t wholly owned subsidiary of Entergy Corporation. According to th . Bostonkson has agreed to sellits ownership interest in Pilgrim t Entergy N ar, subject to o ing all necessary mgulatory Mi $ $

approvals. AfterhoompletionM the proposdd sale and transfer [Entergy Nuclear would be gk8MDA D the sole owner,arEloperator of PilgM$I h  %

e conforming amendments [which would be issued eg

,41% v$ 7 ,p& p 3 M,i yk 4 4dh pursuart to,10 CFR.30.38, 40;44, 50.90, arxi 70.34,1woukfl remove references to Boston Y$ m he % Operating  % License  % and TQ 4  %

Edisonfro$ nals L Mate an $ . icense,)j@d replace them wit w$Ib w yh4 -

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y j S4 Entergy Nuclear,'fkes welllas make miscellaneousto changes the Operating%g b License, D kh k kk k M N, D t administrative in nature, to venect he' transfer.yg gh_  % Yg Notic the appl al at a shed in

% k \$d7 N2A Y $ , khearing was pk the Federa/ Register on January 26,1999 (64 FR 3984) and supplemented on February 5, h h$ $k kk 1999 (64 FR 5841NPursuant to~.such notice, the' Attorney General of theLCommonwealth of Thc  % iEN. i Th. % T44 V*

Massachusetts and L5dal Unions'369 aIQ 387 filed hnr@ requests.N ;Certain municipalities which purchase power f com Citizens Urging Responsible

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< Energy filed written commendand requested a'public hearing. The hearing requests are Q4%W 4 presently under review by the CNnhik$ lid The writthn comments have been considered by

$$h the staff in connection with the issuanc[e of this Oroer.

Under 10 CFR 50.80, no license for a production or utilization facility, or any nght l

L thereunder, shall be transferred, directly or indirectly, through transfer of control of the ucense, unless the Commission sha!! give its consent in writing. Under 10 CFR 30.34,40.41, and l

l J 70.32, no byproduct, source, or special nuclear material license shall be transferred in violation of the provisions of the Atomic Energy Act of 1954, as amended, which require, inter a_[La, Commission consent. Upon review of the information in the application by Boston Edison and Entergy Nuclear, and other information before the i MIk n, and relying upon the Is representations and agreements containe , the NRC staff has determined that Entergy Nuclear is qualified to holI .

s, and that the transfer of the license to y

Entergy Nuclear is otherwise c5hsistent applicable provisions of law, regulations, and 5h h orders issued by,the Commission.jThe NRC' staff has further fo%urM that the Mb[Gdk N 1 k proposed license amendments complies with the" standards and requirements of the Atomic Ed)ct of 1 as am ,an blommi 's M and re ons set forth in Y.$6%

10 CER CIIapter1;k lly b.k %$@%  %

thelfacility will operate in conformity with the application 3the provisions of k Yk  %. k k  %( h the Act and the rules and' regulations of the' Commission; there is reasonable assurance that l

D hh the activik authorized by the Id k $h '4k D license arpendments can be conductedWthout

% M endangering the health and s nd:the public

$$'of h!M$h andUdi that sdch actidities N will be condu$te etik ys

y m% yy y a" compliance with the Commi N

n's Y n ulations; the Idsuance ofihe proposed license *-

amendments %will not%be'y% inimicalonto the  % comm%'  % defense and security %

orto the health and l

$  %% %k Wb safety of the public; and the issuance of the proposed amendments will be in accordance with h bW  %%

10 CFR Part 51 of the Commission's regu!5tions and all applicable requirements have been w m w w W

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\$&W Accordingly, pursuant to Sections 181b,161i, and 184 of the Atomic Energy Act of 1954, l

as amended,42 USC $$ 2201(b),2201(i), and 2234, and 10 CFR 30.34,40.41,50.80, and 70.32, IT IS HEREBY ORDERED that the Commission consents to the transfer of the licenses as described herein to Entergy Nuclear, subject to the following conditions:

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4 (1) For purposes of ensuring public health and safety, Entercy Nuclear shall ensure the provision of decommissioning funding assurance of no less than $396 million, after payment of any taxes, to be deposited in the decommissioning trust for Pilgrim at the time of the transfer of the Pilgrim license,s.to y Nuclear.

(2) Entergy Nuclear shall take all step h&hfb$ht th ensure that the decommissioning Chbh5 Y trust is maintained in accordance withthe applicaton for the transfer of the Pilgrim 4 %M7  %

licenses, the requirements of thIs~ Order, and the safety evaluation.

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m%% A u, (3) visional Trust funding assurance of no less than Entergy[.

gn $kNuclearYif shall provide a P (

% taxes?that will be deposited in the Provisiona

$70'Millionfafter paymentN(any

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5 fund$? ~% at the for Pilgrim YQtime ofr ofthethetransfe$A: Q Pilgrim licenses to Entergy Nuclear.

g% A*ds k h h k %g %fh 13, b k(4)" The; decommissioning' trust agreement (s) between Entergy Nuclear.and the C 71 Ka M  %.  % 'p  %

v .. u w t u n Q trustee (s) shall be in a fo'rm.whicifls acc%eptable to the NRC and shall provide that: a) funds the ing t will t use olely to pay deco sioning exphnsesWN yr4  %(gg@@ 4-  %

l relatidgiecommission'idg (M@MQQ L of Pilh)drn addrelated expensehAs K :. g

% Q %g;f' Egg %g'E permitN by regulation or statute! b) Investments in itSie securities or other

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Nuclear, EnteIg Corp 6 ration, their"affifis,tes or subsidiaries, or obligations'of

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,M -. %n., %e 9 their succesAdrs or assidns shAll be proh . fiin addition,*other that nominal D $h %h d .

amounts invested in mutual funds or investments tied to market indexes, investments i %h Wpd %w V

l in any entity ownin% one or more nuclear power plants is prohibited; and c) the trust g$$hgfsk Y agreement (s) cannot be'amendid in any material respect without the prior written w%g gpmg consent of the [v ictor, Of5ce of Nuclear Reactor Regulation.

(5) Er tergy Nuclear shall have and continue to have available to it a contingency fund in a minimum amount of fifty million dollars ($50m) for payment of operating and maintenance expe.ises for Pilgrim, and to fund the transition to safe shutdown. The I

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o funds shall be available for a minimum of five (5) years from the date of purchase of Pilgrim. Entergy Nuclear will take all necessary steps to ensure that the fund and the j

ability to draw upon the fund remains available until the full amount has been

% I exhausted for the purposes described a gy Nuclear shall infon.1 the I b

Director, Office of Nuclear Reactor) writing, at such time that it draws upon the contingency fund. This edN does*h

• affect the NRC's authority to 4  %!, h funds will remain available to fund the transition to assure that adequate lm u .

decommissioning stattIN. Once thehnt has been plade~d in a safe-shutdown pFM$!Q $0i  % h condition ' '

a decid$h decommission, Entergy NUciear wiil use any

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%n . .m Vs 4@s,%fgemainderof the 50rkguar%u %m.antee'that a has not been.u, sed

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% tain theyplant as needed to,%suoport the safe end prompt decommissioning of the I

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% ME O l (6) B ston Ediso hpon.effectin0 any tran Rs' rightsInd obligations undsthe Q Q Kf %Q q~,

%g Q licenses to Entergy Nuclear as approved by this Orderiphall take actions or preserve Yw tt Tg u a& s W $,  %  %+4/% D. 11.s Th matters necessary t ' enable"it to be able to rev, erse the transferand retum to its current statu(h k kk kk kAM s with respect,to th6 licensefahould the Commission issue an order, in m ykn u%,

T w n% etp s l any hearing grabr' pursuant to the hearing requests identified above, superseding Q

or otherwise affecting,this Order.

Q Q_ V Nh (7) Entergf Nuclear sha mpleti of the sale and transfer of Pi! grim to it,

$$h$5b provide the Director, Office of Nuclear Reactor Regulatica, satisfactory documentary evidence that Entergy Nuclear obtained the appropriate amount of insurance required of licenses under 10 CFR Part 140 of the Commission's regulations.

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(8) After receipt of all required regulatory approvals of the transfer of Pilgrim, Boston Edison and Entergy Nuclear shallinform the Director, Office of Nuclear Reactor Regulation, in writing of such receipt within 5 business days, and of the date of the closing of the sale and transfer of Pilgrirn ni 'shan seven business days prior to saw the date of closing. Should the, transfer;ofNilcense not be completed by fkNQ Q V Q December 31,1999, this Order shab 6bcome null and void, provided, however, on 6 k?V h.

written application ardfor good cause shown, such date may in writing be extended.

k D i IT IS FURTHER ORDERED ~that, consisidnt with 10 CFR 2.1315(b), license amendments l

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that makes ckkhs bted i6bbiosure fkh. this Order, to cohorm the licenses to

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%m (eflect their transfer are approved Sdch a%mendments shall be issued and made effective at D lk $  %$&; 1k Y  % Y

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% k ig license $dP transfersv dre complet i This Order is egectNo upon issdance.Ng A  %

k For fbrthe- hkMetails with respect to this Ordk. kk 6 Y Ni,

\bsee It$e appk:a l

i 1998, and a k NNI'hb cation su NMkk k k which t

- h ments

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dab January yff u 'C ' 28;%n. February 18; and Apr are available for#public inspection"at the Commission's Public Document Room, the Gelman

% %k %Y 6k Building,2120 L Street, NW., Washington, DCFand at the local public document room located i

at the Plymouth  %% SouttfStreet,

%LPublidlibrary,132  % uth, Massachusetts NL Y' 02360.

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Dated at Rockville, INiryland, t $h g day o}@h) i$hp )k ra k%

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• ORITHE NilCLEAR REGULATORY COMMISSION N@%q%

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Samuel J. Collins, Director Office of Nuclear Reactor Regulation l

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