ML20216F142

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Notation Vote Approving W/Comments SECY-97-144, Potential Policy Issues Raised by Non-Owner-Operators
ML20216F142
Person / Time
Issue date: 08/11/1997
From: Mcgaffigan E
NRC COMMISSION (OCM)
To: Hoyle J
NRC OFFICE OF THE SECRETARY (SECY)
Shared Package
ML20216F083 List:
References
SECY-97-144-C, NUDOCS 9709110171
Download: ML20216F142 (2)


Text

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NOT ATIO N VOTE RESPONSE SHEET TO: John C. Hoyle, Secretary FROM: COMMISSIONER MCGAFFIGAN

SUBJECT:

SECY 97144 POTENTIAL POLICY ISSUES RAISED BY NON OWNER OPERATORS Approved ' J t Disapproved Abstain Not Participating Request Discussion CbMMENTS:

See attached comments.

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SIGNATURE [f 6 U Release Vote / w / 9!l'!97 DATE Withhold Vote / /

Entered on "AS" Yes x No Eo0'*coldiIdE!*'

CORRESPONDENCF. PDR h&0 Lf ffUl ll }'? I __o

1 COMMISSIONElt McGAFFIGAN'S COMMENTS ON SECY 97144 1 agree with the staff's proposed position concerning when 10 CFR 50.80 consent would be required in cases where service compames are contracted to provide operations management support and I agree that we need to continue to examine these proposals on a case by case basis until we can better define through dealing with real cases the criteria that should be applied, in approving the staff's position, I note that there may be some ambiguity associated with the circumstance: under which licensees must seek NitC review because of the example used in the SECY paper to illustrate a case where a 50.80 consent review would not be required. It is my view that the responsibility for making such a determination resides with the NRC, not with the licensee. Consequently, to ensure this is clearly understood by all Part 50 licensees, the staff should provide further notification to licensees, perhaps thro an Administrative Letter, that in cases where service companies are contracted to provide operations-management support, licensees should seek early NRC threshold review of the proposed '

agreement to determine whether a formal 50.80 consent review would be required. The guidance in the Standard Review Plan should, to the extent practicable, articulate criteria used to evaluate the extent of control transferred to the non owner operator in directing day to day /

operations of the facility.

I agree with Commissioner Dieus that the staff should ensure coordination and consistency between offlees in the overall agency approach on this issue.

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  1. UNITED STATES

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[ August 29, 1997 Of flCL OF THE

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SECRETARY L'f' MEMORANDUM TO: L. Joseph Callan Exect tive Director or Operations FROM: Kent - . I c rt , sc ing Secretary

SUBJECT:

STAFF REQUIREMENTS MEMORANDUM: SECY 97-144 -

POTENTIAL POLICY ISSUES RAISED BY NON-OWNER OPERATORS The Commission approved the proposal to incorporate in the Standard Review i'lan the staff's position concerning the general criteria it will use in determining whether a nuclear power plant licensee's use of a non-owner service company for operational management requires NRC review and approval under the provisions of 10 CFR 50.80. The Commission also concurred in the continued use of a case-by-case approach in reviewing situations involving independent, non-owner operators in view of the potential variety of operational and contractual arrangements likely to be adopted in such cases.

Although approving the staff's approach, the Commission nevertheless expressed reservations about the lack of precision in the staff's proposal in defining such key terms as " extent of control", "significant control and autonomy over operations," and

" ultimate power to direct the day-to-day activities of the contractor" as well as the absence of specific criteria to be used in evaluating additional examples of operational and contractual arrangements. To address these concerns, the Commission requested that the staff:

  • Notify licensees that in cases where service companies are contracted to provide operations management support, the licensee should seek early NRC threshold review of the proposed agreement to determine whether a formal NRC consent review under 10 CFR 50.80 will be required.

e Ensure that specific criteria used to evaluate the extent of control transferred to the non-owner operator in directing day-to-day operations of the facility are, SECY NOTE: THIS SRM, SECY-97-144, AND THE COMMISSION VOTING RECORD CONTAINING THE VOTE SHEETS OF ALL COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE 5 WORKING DAYS FROM THE DATE OF THIS SRM.

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to the extent practicable, incorporated in the Standard Review Plan.

  • Provide a discussion, with specific examples, of the criteria the staff would use in making a determination of whether a section 50.80 review is necessary. In developing these specific criteria, the staff should ensure coordination of and consistency between criteria to be applied by NRR in evaluating nuclear power plants and those to be applied by NMSS to materials licensees, the gaseous diffusion plant operators, and any contractors operating DOE facilities that may be subject to NRC regulatory oversight. This discussion could be included in the paper being developed regarding NRC's financial qualifications review process or may be developed in conjunction with the Standard Review Plan Update.

(EDO) (SECY Suspense: 12/31/97) cc Chairman Jackson Commissioner Dieus Commissioner Dian Commissioner McGaffigan OGC CIO CFO OCA OIG Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)

PDR DCS

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