ML20206T150
| ML20206T150 | |
| Person / Time | |
|---|---|
| Issue date: | 09/18/1986 |
| From: | Olmstead W NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| To: | Shao L NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| Shared Package | |
| ML20206T154 | List: |
| References | |
| FRN-52FR1292, RULE-PR-30, RULE-PR-40, RULE-PR-50, RULE-PR-61, RULE-PR-70, RULE-PR-72 AC16-2-12, NUDOCS 8609250428 | |
| Download: ML20206T150 (1) | |
Text
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{A SEP 18 1988
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?-lE!!ORAllDUf.! FOR: L. C. Shao, Deputy Director l Division of Engineering Safety )
Office of Nuclear Regulatory Research F F Ohl: Vlilliam J. Olmstead Assistant General Counsel for Rulemaking and Fuel Cycle Office of the General Counsel
SUBJECT:
FILIAL RULE A!.1ENDhlENTS TO 10 CFR PARTS 30,
, 40, 50, 61, 70, AND 72 REQUIRING LICENSEES TO !!OTIFY NRC OF CASES OF BANKRUPTCY FILING l In responce to your request of September 9, 1986, we have reviewed the Federal Register notice containing the subject rule (Enclosure A) and the Regulatory Analysis (Enclosure B). Some minor editorial comments are noted directly on the text of Enclosure A at pp.1, 2, 3, 5, and 12 and on .
the text of Er. closure B at p.11. Subject to these minor changes and the feet that page 17 uss missing from our copy of Enclosure A, we have no legal objection to the Regulatory Analysir or the final rule.
F.'illiam J. Olmstead Assistant General Counsel for Rulemaking and Fuel Cycle Office of the General Counsel
Enclosure:
i f.larhed text of Enclosures A end B cc: Frank Cardile, AIB .g DISTRIBUTION Jflepes
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J. G. Davis, RMSS b h k D. F. Ross b' ME%Q J. H. Sniezek C. E., Sarpan K. G. Steyer F. P. Cardile SEP9 1986 R. O'Connell , NMSS B. Pineles, OGC y J. R. Mapes, OGC R. S. Wood, SP M. Lesar. ADM MEMORANDUM FOR: DISTRIBUTION w/o encl .:
L. C. Shao, Deputy Director RES CIRC /CHRON FROM:
Division of Engineering Safety MB r/f Office of Nuclear Regulatory Research MB s/f
SUBJECT:
DIVISION REVIEW REQUEST: FINAL RULE AMENDMENTS TO 10 CFR PARTS 30, 40, 50, 61, 70, AND 72 REQUIRING LICENSEES TO NOTIFY NRC OF CASES OF BANKRUPTCY FILING Your assistance is requested in reviewing the enclosed final rule amendments requiring licensees to notify NRC of cases of bankruptcy filing.
The following is a summary of this request:
1.
Title:
Bankruptcy Filing; Notification Requirements
- 2. Task No.: CE-502-1
- 4. M. Lesar, ADM R. Wood, SP
- 5. Requested Action: Review and comment
- 6. Requested Completion Date: September 24, 1986
- 7.
Background:
(a) On June 21, 1986, the Commission published a Notice of Proposed Rulemaking (51 FR 22531) containing requirements for notifica-l tion in the event of bankruptcy involving licensees. Specifically, the
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amendments require each licensee to notify the approp:iate regional office of the NRC, in writing, in the event of the 1iling of a bankruptcy petition involving the licensee. A licensee would not be affected by these amendments unless and until a bankruptcy petition is filed.
l The purpose of the amended regulations is that NRC have means in place so that it is alerted and can take necessary action to deal with potential hazards to the public health and safety that may be posed by a licensee that does not have the financial resources to properly handle licensed radioactive material or to clean up possible contamination, l
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l MEMORANDUM FOR DISTRIBUTION I During the public coment period, eight coment letters were received.
Five of the letters expressed strong support for the proposed rule i based to a large extent on problems which they had experienced with bankrupt licensees. The other three letters contained specfic comments which are discussed and resolved in the Supplementary Information to the Final Rule (Enclosure A).
Based on the public comments received, there are no changes to the rule text except those of an editorial nature.
(b) At this time your review is requested of:
(1) The Federal Register Notice (Enclosure A); and (2) The Regulatory Analysis (Enclosure B).
The congressional letters and public announcement will be written at a later date.
L. C. Shao, Deputy Director Division of Engineering Safety Office of Nuclear Regulatory Research
Enclosures:
as stated Y/y RES:MB:pd RES: B
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RES:MB R DES FPCardile KGSteyer CSerpan L hao 09/[(/86 09///86 09/ /86 09/ /86 L .
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SEP S EM6 MEMORANDUM FOR DISTRIBUTION Richard E. Cunningham, Director, NMSS/FC Robert E. Browning Director, HMSS/WM William J. Olmstead, OGC Jerome D. Saltzman, Director > SP/SLR ThemisP.Speis, Director,NRR/SR0(4)
Donnie Grimsley, Director, ADM/DRR James G. Partlow, Director, IE/IP Thomas E. Murley, Administrator, Region I J. Nelson Grace, Administrator, Region II James G. Keppler, Administrator, Region III Robert D. Martin, Administrator. Region IV John B. Martin, Administrator, Region V e
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[7590-01]
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NUCLEAR REGULATORY COMMISSION l 10 CFR Parts 30, 40, 50, 61, 70, and 72 Bankruptcy Filing; Notification Requirements AGENCY: Nuclear Regulatory Commission.
l ACTION: Final rule.
SUMMARY
The Nuclear Regulatory Commission is amending its regulations j 7b < < vit e
-by re[<uiring a licensee to notify the appropriate Regional Administrator V
of the NRC in the event that the licensee is involved in bankruptcy pro-ceedings. The amende'd regulations are necessary because a licensee's severe financial conditions could affect its ability to handle licensed radioactive material and the NRC must be notified so that appropriate measures to protect the public health and safety can be taken.
EFFECTIVE DATE:
(Insert a date 30 days following publication in the Federal Register).
Frank Cardile, Office of Nuclear Regu-FOR FURTHER INFORMATION CONTACT:
latory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 443-7784.
SUPPLEMENTARY INFORMATION:
Discussion The NRC is amending its regu-Requirenents Established by the rule.
lations to provide requirements for notification in the event of bankrupt:y 1 Enclosure A 09/03/86 ,
[7590-01]
involving licensees. Specifically, the regulatio.s require each licensee to notify the appropriate regional office of the NRC, in writing, in the event of the filing of a bankruptcy petition invciving the licensee filed under Title 11 (Bankruptcy) of the United States Code. A licensee would not be af fected by these amendments unless and urtil a bankruptcy petition is filed. The rule prescribes the specific actic. that a licensee would be required to follow at that time. This action includes notifying the NRC within a certain time period by supplying the information specified in the rule.
Need for.the rule. A licensee who is exper'encing severe economic hardship may not be capable of carrying out licersed activities in a manner which protects public health and safety. In par:fcular, a licensee involved w
in bankruptcy proceedings can have problems af fe::ing payment for the proper handling of licensed radioactive material and for the decontamina-Im-tion and decommissioning of the licensed facilit in a safe manner.
proper materials handling or decontamination act'vities can result in the spread of contamination throughout a licensee's facility, potential for lv
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dispersion of contaminated material offsite, and problems affecting the licensee's waste disposal activities. Instances nave occurred in which licensees filed for bankruptcy and the NRC has n:: been aware that this has happened. NRC inspectors have found, belate:iy, that a licensee has l
vacated property and abandoned licensed material or has been unable to In some decontaminate its facility and properly dispose :f the waste.
cases, NRC inspectors have found significant am:.nts of radioactive con-tamination present at licensee sites and the po sitial for dispersal of 2 Enclosure A 09/03/86
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the contaminated material offsite. Because of the potential risk to pub-lic health and safety if the facilities were lef t in their as-found con- %
%& to take pro- NA dition, it was necessary for they or We State governments ' %
tective and remedial action and to expend substantia) amounts of public y % )
vAY funds for cleanup of the facilities because funds of the bankrupt licensee N were no longer available. The NRC should be notified of these situations f ( ,
k promptly, before they become more serious, so that it can take necessary N actions to assure that the health and safety of the public is protected. ,
There is no current regulation requiring licensees to notify the NRC be%.
in cases of bankruptcy filings. Therefore, the NRC may not be aware of a M(
significant financial problem for a particular licensee and thus also not be aware of potential public health and' safety problems. Notifying the NRC in cases of bankruptcy will alert the Commission so that it may deal with potential hazards to the public health and safety posed by a licensee that does not have the resources to properly secure the licensed material or clean up possible contamination.
Background
On June 20, 1986, the Commission published a Notice of Proposed Rulemaking (51 FR 22531) containing notification requirements in the event It of bankruptcy filing. The comment period expired on July 21, 1986.
was indicated in the Notice that the proposed amendments applied to all licensees covered by 10 CFR Parts 30, 40, 50, 61, 70, and 72, including byproduct, source, and special nuclear material licensees, as well as production and utilization facility, low-level waste disposal facility, and independent spent fuel storage installation licensees.
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3 Enclosure A 09/03/86 ,
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[7590-013 The comment letter from the electric utility licensee indicated opposition to the rule as it applies to 10 CFR Part 50 licensees for the following reasons: the regulatory analIsis supporting the rule relates to non-utility licensees and applying 17. to utilities for the sake of
. consistency is an inadequate basis for the Part 50 amendment; it is an incorrect assumption that the act of filing a bankruptcy petition affects a utility Keense's ability to safely handle licensed material; the amend-
' ment would further involve NRC in utility financial matters which is an area where NRC should proceed cautiously; and NRC already possesses methods of monitoring a utility licensee's financial condition including the availability of credit agency ratings which can be monitored and including required submittals of financial statements under 10 CFR 70.71(b) which In response to this commenter NRC could review and use to observe trends.
the regulatory analysis indicates other reasons for proceeding with this rulemaking besides consistency in the regulation. These reasons include the fact that there is some potential for reduction in public and occu-pation exposure, that there is an improvement in NRC's inspection and enforcement capabilities, and that the burden on industry and NRC is minimal.
The amendment by itself would not further involve NRC in utility financial matters but would only make NRC aware of a specific situation. Actions taken in response to the situation are not treate: in this rulemaking.
Finally, it appears that a direct notification of bankruptcy would be a better means of NRC becoming alert to the situaticn than a monitoring of trends or credit ratings.
The comment letter from the other private company indicated that the Supplementary Information and the rule text shoul: make it ' clear that a licensee only has to notify the NRC if involved i a bankruptcy as a debtor.
5 Enclosure A 09/03/86
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Part 70 - Hazardous materials - transportation, Aclear materials, Packaging and containers, Penalty,' Radiation protectim, Reporting and recordkeeping requirements, Scientific equipment, Sect-ity measures, Special nuclear material.
Part 72 - Manpower training programs, Nuclear ma.arials, Occupational r safety and health, Reporting and recordkeeping requirenents, Security measures, Spent fuel.
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FINAE-RULEMAK-For the reasons set out in the preamble and unde- the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act
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of 1974, as amended, and 5 U.S.C./553, the NRC is ado: ing the following i amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72 PART 30 - RULES OF GENERAL APPLICABILITY TO DOMEETIC OF BYPRODUCT MATERIAL 4
- 1. The authority citation for Part 30 continues to read as follows:
AUTHORITY: Sections 81, 82,161,182,183,186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.
202, 206, 88 2111, 2112, 2201, 2232, 2236, 2282); secs. 201, as ammded, Stat. 1242, as amended 1244,1246 (42 U.S.C. 5841, SE22, 5846).
Section 30.7 also issued under Pub. L.95-601, sic.10, 92 Stat.
Section 30.34(b) also issued .nder sec.184, 68 2951 (42 U.S.C. 5851).
Section 30.E'. also. issued under f Stat. 954, as amended (42 U.S.C. 2234). I sec.187, '68 Stat. 955 (42 U.S.C. 2237).
i Enclosure A l 12
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(8) The amendments' apply to all power reactor licensees independent of facility type, design, and age.
(9) When the proposed amendment is made effective, it will be a final action.
5.2 Backfit Analysis Determination Based on the analysis of the factors as presented in Section 5.1, the Com-mission has determined that this rule does not meet the backfitting requirements of 10 CFR 50.109(a)(3) namely that there be a substantial. increase in overall protection of public health and safety. However, the rule is not intended to provide a substantial increase in overall protection but is considered justiff-able and warranted to prevent a decrease in the level of protection considered available under current regulations. In addition, the rule is considered to The Commission is promulgating the save resources in bankruptcy circumstances.
rule for the following reasons: (1) there is seme, albeit small, potential for reduction in public and occupational exposure; (2) the action required by this rule is administrative, resulting in no installation, downtime, or construction costs and no effect on plant or operational complexity; (3) the burden on indus-try and NRC is minimal, and in fact this action would probably result in a net reduction in NRC resource expenditures; and (4) this action is justified for non power reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6_.0D and
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N. imposing it for re-actor plants also provides for consistency in the regulations. T p, gm 6y>
- 6. DECISION RATIONALE l
Section 5 presented the rationale for the implementation of these require-l . ~
presents the decision rationale for imple-f 4 ,mentsSforpowerreactors.(
!pt4 # mentation of the requirements of the amendments for facilities other than power j reactors.
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This action will specify procedures for licensee notification of the NRC l
f in cases of filing for bankruptcy. This is necessary so that the NRC is aware 11 Enclosure B 08/06/86 b
s .. . . - - .