ML23018A297

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Petitioner Eric Epsteins Motion for Leave to File New Contentions
ML23018A297
Person / Time
Site: Three Mile Island Constellation icon.png
Issue date: 01/18/2023
From: Bernabei L, Epstein E
- No Known Affiliation, Bernabei & Kabat, PLLC
To:
Atomic Safety and Licensing Board Panel
SECY RAS
References
ASLBP 23-977-02-LA-BD01, RAS 56599, 50-320-LA-2
Download: ML23018A297 (0)
v • d • e


Text

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

ATOMIC SAFETY AND LICENSING BOARD PANEL BEFORE THE LICENSING BOARD

)

In the Matter of ) Docket No. 50-320-LA-2

)

TMI-2 SOLUTIONS, LLC ) ASLBP No. 23-977-02-LA-BD01

)

(License Amendment Request for Three ) January 18, 2023 Mile Island Nuclear Station, Unit 2) )

____________________________________)

PETITIONER ERIC EPSTEINS MOTION FOR LEAVE TO FILE NEW CONTENTIONS

Pursuant to 10 C.F.R. § 2.309(c), Petitioner Eric Epstein, through undersigned counsel,

hereby files his Motion for Leave to File New Contentions based on information that was not

previously available. Specifically, the Susquehanna River Basin Commission (SRBC) issued

on order that, effective January 1, 2023, limited the supply of water to Three Mile Island Nuclear

Station, Unit 2 (Unit 2) to an incidental supply, and did not approve a supply of water to

TMI-2 for consumptive use. Because TMI-2 Solutions, LLC (TMI-2) submitted its License

Amendment Request (LAR) for Unit 2 prior to the issuance of the SRBCs order, the LAR

failed to consider the consumptive use restrictions on Unit 2.

I. PROCEDURAL BACKGROUND.

TMI-2 submitted its LAR on February 19, 2021, and subsequently supplemented it

through May 16, 2022. The Nuclear Regulatory Commission (NRC) issued a preliminary

determination that the LAR involved no significant hazards consideration under 10 C.F.R §

50.92(c) on August 22, 2022. On November 4, 2022, Mr. Epstein filed pro se a timely Petition

for Leave to Intervene and Hearing Request (Petition). NRC and TMI-2 filed their Answers on

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November 28, 2022, after which Mr. Epstein filed his Reply on December 6, 2022. On

December 12, 2022, the Atomic Safety and Licensing Board Panel issued a Scheduling Order

and set oral argument on Mr. Epsteins Petition for January 29, 2023.

II. FACTUAL BACKGROUND.

Three Mile Island Nuclear Station, Unit 1 is the source of water for Unit 2. See Letter

from P. Ballaron, SRBC, to E. Epstein, at 2-3 (Jan. 10, 2022) (without attachments) (attached as

Exhibit 1). Constellation Energy Generation, LLC (Constellation) owns Unit 1, and Exelon

Generation Co., LLC (Exelon) operates Unit 1, whereas TMI-2 owns Unit 2.

On December 15, 2022, after briefing closed on Mr. Epsteins Petition, the SRBC issued

an order on Exelons applications for renewed approval for the withdrawal of ground water and

surface water to support the decommissioning of Unit 1. See Susquehanna River Basin Commn,

Three Mile Island Generating Station, Unit 1, Docket No. 20221203, at 1 (attached as Exhibit

2). Specifically, the SRBC allowed Exelon to continue withdrawing ground and surface water,

and to use these sources for consumption at Unit 1, albeit at reduced rates, as Unit 1 is in the

process of decommissioning, [and] the facility water demand has decreased. Id.

Specifically, in Section 5 of the SRBCs order, it set forth surface water withdrawal

limitations of 44.000 mg in peak day withdrawal and 34,6000 gpm for instantaneous withdrawal

rate. Id. § 5. It also limited the withdrawal of ground water to 0.099 for a thirty-day average. Id.

The SRBC further set forth a 6.000 mgd peak day limit on consumptive use. Id. § 6.

SRBC expressly stated that any supply of this water by Unit 1 to Unit 2 would be

incidental and limited to a thirty-day average of 0.020 mgd. Id. ¶ 24. Moreover, the SRBC

specifically explained that its order did not approve consumptive use at Unit 2, the approval

process for which required separate SRBC review and approval. Id. The SRBCs prior

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groundwater withdrawal approvals expired on December 31, 2022, and its new order went into

effect on January 1, 2023. Id. §§ 25-26.

TMI-2s LAR failed to consider the ground water, surface water, and consumptive-use

restrictions imposed by the SRBCs December 15, 2022 order. In fact, to Petitioners knowledge,

there exists no publicly available document that sets forth the water requirements for

decommissioning Unit 2including for the decontamination process, the source of the required

water, or where the water will be disposed after use. These considerations are essential elements

of a clean-up plan that TMI-2 should have addressed in its LAR, as a lack of available water can

delay the clean-up process.

Further, TMI-2s failure to plan adequately for the clean-up process also casts doubt on

the consideration it afforded to other aspects of its LAR, including its claims that criticality is not possible.1

Because the SRBC issued its order after briefing on Mr. Epsteins Petition closed, Mr.

Epstein seeks leave to add the following contentions:

3. The LAR Fails to Consider the Ground Water, Surface Water, and Consumptive-Use Restrictions Imposed by the Susquehanna River Basin Commissions December 15, 2022 Order.
4. TMI-2s Failure to Consider the Ground Water, Surface Water, and Consumptive-Use Restrictions Casts Doubt on Its Assertion that Criticality is not possible.

III. LEGAL ARGUMENT.

A. The Board Should Grant Mr. Epsteins Motion for Leave to File New Contentions.

1 See TMI-2, Answer Opposing Pet. for Leave to Intervene and Hearing Req., at 21 (Nov. 28, 2022).

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Pursuant to 10 C.F.R. § 2.309(c), Petitioner may seek leave to file new contentions after

the filing deadline has expired, if he demonstrates good cause by showing that:

(i) The information upon which the filing is based was not previously available; (ii) The information upon which the filing is based is materially different from information previously available; and (iii) The filing has been submitted in a timely fashion based on the availability of the subsequent information.

10 C.F.R. § 2.309(c)(1)(i)-(iii).

In the instant case, the information upon which this filing is basedthe SRBCs

December 15, 2022 order, was not available when Mr. Epstein filed his Petition on November 4,

2022, or his Reply on December 6, 2022.

Further, the SRBCs order, which prohibits Unit 1s provision of more than an

incidental amount of water to Unit 2, and which declines to extend any consumptive-use rights

to Unit 2, is materially different from the information previously available. Indeed, as the

SRBCs order noted, the SRBC significantly reduced the amounts of groundwater, surface water,

and consumptive-use water available to Unit 1, based on its decommissioning. As a result, the

amount of incidental water available to Unit 2 also decreased.

Moreover, Mr. Epstein has filed the foregoing motion in a timely fashion, based on the

availability of the SRBCs recent order. Specifically, the SRBC issued the order on December

15, 2022, and it went into effect on January 1, 2023. For the majority of this case, Mr. Epstein

was a pro se litigant, as undersigned counsel did not enter an appearance until January 10, 2023.

Only eight days after counsel entered an appearance, seventeen days after the SRBC orders

effective date, and prior to oral argument on his Petition, Mr. Epstein seeks to add his new

contentions.

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B. The Board Should Permit Mr. Epstein to File Additional Evidence of His Standing.

In further support of Mr. Epsteins Petition, he seeks leave to file 1992 and 1999

settlement agreements, which expressly acknowledge his special interest in overseeing Unit 2.

See Settlement Agreement between E. Epstein, NRC Staff, and GPU Nuclear Corporation (1992)

(attached as Exhibit 3); Settlement Agreement between E. Epstein and AmerGen Energy

Company, LLC. (1999) (attached as Exhibit 4).

As a preliminary matter, Mr. Epstein submitted his Petition and Reply pro se before he

was represented by counsel. At the time he submitted his filings, he could not locate the prior

settlement agreements. However, after Mr. Epstein engaged Bernabei & Kabat, his counsel

subsequently located the agreements.

Indeed, pro se petitioners are held to less rigid pleading standards, so that parties with a

clear -- but imperfectly stated -- interest in the proceeding are not excluded. In the Matter of

Nextera Energy Seabrook, LLC (Seabrook Station, Unit 1), 86 N.R.C. 59, 77 (2017).

The 1992 Agreement concerned an application to amend the license for Unit 2 from an

operating license to a possession-only license and provide for Post-Defueling Monitored Storage,

as well as Mr. Epsteins petition to intervene in that proceeding. The Settlement Agreement, to

which the NRC was a signatory, specifically acknowledged that Mr. Epstein was a person with a

special interest. See Ex. 3 ¶ 4(a). Thus, although the NRC Staff now contends that Mr. Epstein

lacks standing, it expressly admitted that he had a special interest in the conditions of TMI in

1999.

Similarly, the 1999 Agreement concerned GPU Nuclear Corporations proposed sale of

Unit 1 to AmerGen and the associated license transfer. The 1999 Agreement also acknowledged

Mr. Epsteins interest in the continued safe operation of the facility. See Ex. 4, Recitals ¶ (C).

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IV. CONCLUSION.

For the foregoing reasons, Petitioner Eric Epstein respectfully requests that the Licensing

Board grant his Motion for Leave to File New Contentions.

Dated in Washington, D.C.

January 18, 2023

Respectfully submitted,

/s/ Lynne Bernabei Lynne Bernabei Bernabei & Kabat, PLLC 1400 - 16th Street, N.W., Suite 500 Washington, D.C. 20036-2223 tel. (202) 745-1942 fax (202) 745-2627 Email: Bernabei@bernabeipllc.com

Counsel for Petitioner Eric Joseph Epstein

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CERTIFICATE OF SERVICE

Pursuant to 10 C.F.R. § 2.305(c), I hereby certify that on January 18, 2023, I served a true

and correct copy of the foregoing Petitioner Eric Epsteins Motion for Leave to File New

Contentions through the Electronic Information Exchange in the above-captioned matter.

/s/ Signed electronically by Eric Epstein

Eric Epstein 4100 Hillsdale Road Harrisburg, PA 17112 tel. (717) 635-8615 Email: epstein@efmr.org

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Exhibit 1

Exhibit 2

Exhibit 3

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SETTLEMENT AGREEMENT

This Settlement Agreement (the "Agreem3nt") is made between Eric J. Epstein ("Epstein"), GPU Nuclear Corporation ("GPU Nuclear") and the United States Nuclear Regulatory Commission

("NRC") Staff ("NRC Staff"), and is based on the following recit-

als, all of which are hereby agreed to be true:

RECITALS

A. GPU Nuclear is the holder of Facility Operating License No. DPR-73 for the Three Mile Island Nuclear Station Unit 2

("TMI-2" or "the plant") located in Dauphin County, Pennsylvania.

B. GPU Nuclear has filed with the NRC an application to amend the TMI-2 license so as to change the current TMI-2 operat-ing license to a " possession-only" license and modify the current THI-2 Technical Specifications to allow for long-term storage of the facility, to be known as Post-Defueling Monitored Storage or

"PDMS." For purposes of this Agreement, this GPU Nuclear license amendment application, as amended, will be referred to as the

"PDMS Amendment."

C. Epstein has filed with the NRC a petition for leave to intervene (" Petition") in the NRC's consideration of the PDMS Amendment. GPU Nuclear and the NRC Staff have opposed Epstein's

Petition. The NRC has designated an Atomic Safety and Licensing

9210160059 921008ADOCK 05000320 PDR G PDR

r Board (" Licensing Board") to rule on Epstein's Petition. For purposes of this Agreement, the Licensing Board proceeding with respect to Epstein's Petition will be referred to as the "PDMS proceeding."

D. Epstein and GPU Nuclear wish to settle the PDMS pro-ceeding, and all possible claims and disputes of any nature between Epstein, on the one hand, and GPU Nuclear, on the other hand, relating in any way to any aspect of the PDMS Amendment as proposed by GPU Nuclear.

E. This Agreement is hereby established in order to, among other things, provide for the payment by GPU Nuclear of costs

associated with certain Authorized Activities, as defined herein, in accordance with any statutory or regulatory requirements which are or may hereafter become applicable to this Agreement or GPU

Nuclear.

NOW, THEREFORE, recognizing that it is in the public inter-est to provide mechanisms for the increased availability of information regarding THI-2 and the ability of the community liv-ing or working in the vicinity of TMI-2 to monitor their environ-ment, and in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby represent, warrant and agree as follows:

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1. Term of Aareement. Except as otherwise provided in this Agreement, the term of this Agreement, and the parties' rights and obligations under this Agreement, shall be seven (7) years, beginning on the date of Licensing Board. dismissal of the PDMS proceeding, and ending with the end of the seventh fiscal year as defined in Section 4.b (5)(e)-of this Agreement.
2. Dismissal of PDMS Proceedina. Within fifteen (15) days

after the execution of this Agreement, the parties vill file with

the Licensing Board a joint stipulation seeking the dismissal, with prejudice, of Epstein's Petition challenging the PDMS

Amendment.

3. Absence of Contested Proceedina. All of GPU Nuclear's performances and obligations under this Agreement are absolutely conditioned upon the absence of any contested proceeding, either before the NRC or before any court or other agency, challenging any aspect of the PDMS Amendment as proposed by GPU Nuclear.

Notwithstanding this Agreement, in the event that a hearing is

otherwise ordered or a complaint initiating a lawsuit is filed in any court which seeks to challenge any aspect of the PDMS Amend-ment, this Agreement-vill become voidable at the option _of GPU

Nuclear. In the event this Agreement is voided by the filing of such a petition or complaint, as described above, by Epstein, GPU Nuclear may seek to recover any funds paid pursuant to Sections

4.b.(5) and 14 of this Agreement.

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4. Community Involvement,
a. Formation of "Special Interest" Group.

(1) GPU Nuclear will consider Epstein and/or sev-eral designated associates to be persons with a "special inter-est" in PDMS. These persons will be recognized by GPU Nuclear, during the seven-year term of this Agreement, as a "special

interest group," hereinafter referred to as the " Group."

(2) The Group will have a membership of between

three (3) and five (5) persons.

(3) Group members will be proposed by members of

the community living or working in the geographic vicinity of TMI-2. All Group members must live or work in the geographic

vicinity of TMI-2 (i.e., within a twenty-five (25) mile radius of

TMI-2)..All Group members must be approved by GPU Nuclear. GPU Nuclear's approval of proposed Group members will not be unrea-

sonably withheld.

(4) The Group will not be recognized or discussed

in the THI-2 Technical Specifications or FSAR-or in any other

I NRC-authorized or NRC-licensed program.

(5) At the end of its seven-year term, the. Group may recommend that GPU-Nuclear continue its recognition of the Group. Based on any such recommendation, GPU Nuclear may choose,

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in its absolute, unrovievable discretion, to continue recognition of the Group beyond the seven-year term of this Agreement.

b. Benefits to Which the Group is Entitled.

(1) The Group is not generally entitled to any special benefits or privileges not availablm to the general pub-

lic. The only benefits and privileges available to the Group are

those specified in this Agreement.

(2) Reports, Etc. The Group will be entitled to receive from GPU Nuclear copies of all GPU Nuclear reporto and correspondence that relate to PDMS,-that are filed with the NRC, and that would otherwise be available upon request to members of the public, including copies of GPU Nuclear's REMP report dock-

eted at the NRC. All such reports and correspondence will be

mailed to the Group within ten days of the filing of such reports and correspondence with the NRC. In addition, as described in.

Section 9 of this Agreement, the Group will be entitled to receive a yearly report on expenditures with regard to robotics

research. As described in Section 5 of this Agreement, the Group

will also be entitled to a copy of the information provided to area news'spers with respect to the results of its tritium moni-toring program for the remaining period of accident-generated water evaporation. With the exception of the yearly report on expenditures with regard to robotics research, the Group will not be entitled to any reports or correspondence that would not

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y otherwise-be-generated by GPU Naclear-without regard to the-existence-of this. Agreement.

(3) Exit meetinos.- GPU. Nuclear will make a good-faith effort to ensure that the Group receives timely prior

notice of NRC exit meetings related to-PDMS. Requests by the

Group to attend exit meetings, as observers, shall be made~to GPU Nuclear, which will not object to such a request if made

promptly. The Group expects infrequently to requestLattendance.

GPU Nuclear is solely responsible for making any necessary; arrangements for the Group to observe the exit meetings. Nothing herein shall limit the right of the NRC to_ determine the time and place of such exit meetings, and whether, under specific. circum-stances, the Group or others may attend those meetings. :

.(4) Ecuipment. The Group will be entitled to the-

benefits discussed in Section 8 of this Agreement regarding.the-purchase of equipment. This paragraph is not-intended to enlarge:

or expand.the benefits described in Section 8 of this Agreement.

(5) Budoet.

(a) GPU Nuclear'will provideLthe Group with.

an annual, budget to be used to defray the reasonable-administra-tive-expenses of the Group directly related to its exprassed; intent to monitor'PDMS activities. The annual budget will con-

sist of-fifteen thousand dollars ($15,000) for the Group's first

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fiscal year, ten thousand dollars ($10,000) for each of the

Group's second through sixth fiscal years, and five thousand dol-lars ($5,000) for the Group's seventh fiscal year. Reasonable administrative expenses vould include, for example, reasonable expenses for the purchase of a portable computer, a printer, software, computer supplies, other office supplies (e.o., pen-

cils, pens, paper clips, envelopes, letterhead, postage), a pho-tocopying machine, a facsimile machine, a dedicated telephone line and answering machine, file _ cabinets, batteries, the mainte-nance and/or replacement of radalerts purchased under Section 8.b.(1) of this Agreement, service contracts for maintenance of the computer and printer purchased under Section 8.c.(1) of this Agreement and the computer purchased under Section 8.c.(2) of this Agreement, and reimbursement for reasonable fuel expenses incurred 4.n traveling related to the Group's monitoring activi-

ties. Any use of the budget for reimbursement for fuel expenses must be supported-by a written log including, at a minimum, the date of trip, the points of origination and destination, and odometer readings before and after the trip. This listing of examples of expenses that are or are not covered by the Group's

- budget is not intended to be exhaustive. However, no part of the budget shall be used for the payment of salaries, benefits or any=

other form of direct or indirect compensation for any member or agent of the Group or for the payment of legal fees or expenses, consultant fees or expenses, or expert fees or expenses. GPU

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-Nuclear reserves the right to determine whether specified expenses not listed above are reasonable administrative expenses.

The Group will resolve any doubts regarding the allowance of any expense by seeking GPU Nuclear's approval of the expense in advance. The Group will use all funds paid to the Group under

this Section 4.b.(5) and all earnings accumulated or to be accu-mulated thereon (the " Funds") for the purposes described in this

p *aaraph (the " Authorized Activities"). Within thirty (30) days

following the expiration of this Agreement, the Group will pro-vide to GPU Nuclear any equipment purchased under this Agreement, with the exception of the Radalerts purchased under Section

8.b.(1) of this Agreement.

(b) Within thirty (30) days of the execution

of this Agreement, GPU Nuclear vill pay, in the form of a check made out to the Group, fifteen thousand dollars ($15,000). In

each succeeding year, GPU Nuclear vill pay, in the form of a check made out to the Group, the amount called for in Section

4.b.(5)(a) of this Agreement, subject to receipt of a certifi-

cate, satisfactory in form and substance to GPU Nuclear as described in Section 4.b,(5)(c) below, and subject to any credit recognized pursuant to Section 4.b.(5)(e) below.

(c) The Group will provide to GPU Nuclear,

not later than thirty (30) days prior to the completion of each

fiscal _ year, a-certificate, signed by a duly authorized represen-tative of the Group, which shall include the following:

(i) A statement that all Funds p. lded by GPU Nuclear were used for reimbursement of costs of Authorized

Activities as described in the Agreement;

(ii) An identification (in sufficient detail to permit audit thereof in accordance with this Agreement)'

of the work services, materials and equipment and related costs

performed, rendered or acquired in connection with the Authorized

Activities which gave rise to the costs for which the Funds were used;

(iii) A cumulative year-by-year summary of the Funds, identifying original funds provided by GPU Nuclear

and interest or other earnings.

(d) The Group shall maintain reasonable accounting and other records of the Funds and the expenditures

made by the Group for the Authorized Activities which shall be

made available for examination by GP", Nuclear or its duly autho-

rized representative upon request.

(e) The Group's first fiscal year will com-

mence on the date the funds are received from GPU Nuclear and

will conclude on the last day of the same month plus one year.

Subsequent fiscal years will be on a succeeding twelve (12) month

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basis. Expenses incurred but not yet paid for can beEreported in-the year' incurred or actually paid,7provided the reporting of the With the

expense is consistently applied across fiscal years.

exception of reimbursement for expenses reported in the year

P incurred,_any funds not spent in one fiscal year will lue counted as a credit against the next year's payment of the Group's-budget. J

(f). At the end of the last fiscal year for which GPU-Nuclear.has agreed to recognize the Group,-the Group will provide to GPU Nuclear the certificate described in Section 4.b.(5)(c) above. The Group will reimburse GPU Nuclear for any funds expended during the last fiscal year which are found not to

relate to the Authorized Activities. All funds not spent by the Group will be returned to GPU Nuclear within forty-five (45) days following the end of.such last fiscal year.

5. Tritium Monitorino Results. GPU Nuclear will publish in area newspapers, on'a mor.thly basis, the results of its tritium monitoring for-the remaining period of accident-generated water evaporation..In addition, GPU Nuclear will provide the Group with a copy of~the information provided to-area newspapers pursuant to the preceding sentence. " Accident Generated' Water" is defined as that term is defined in-the-TMI-2 Technical

Specifications.

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6. - In-Plant Monitorina. GPU Nuclear will install a temperature-sensing device into the TMI-2 reactor vessel in order to monitor the temperature in the reactor vessel on a periodic basis so as to ensure the stable, steady state of the environment inside the reactor vessel. Monitoring information from this device wilt be included with other plant information contained in

the periodic plant status reports.

7. Unexpected Trends. As part of the routine monitoring program for PDMS, GPU Nuclear will monitor for unexpected trends-resulting in unanticipated high radiation levels within the

plant. As a general matter, GPU Nuclear will consider any sig-nificant deviations from the expected performance and radiation level projections for the plant set forth in the PDMS Safety Analysis Report prepared by GPU Nuclear and the PDMS-Safety Eval-uation Report prepared by the NRC Staff to be unexpected trends.

If such an unexpected trend is discovered, GPU' Nuclear will, in accordance with establishedLsystems and procedures, monitor the

trend in order to determine its cause and will implement and doc-ument appropriate corrective action. GPU Nuclear will provide the Group with copies of all reports that relate to the= monitor-ing, analysis or correction of such unexpected trends and that are-both filed with the NRC and'otherwise available to the

public.

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8. Equipment Purchases,
a. Subject to the exceptions noted in Sections 8.b.

and 8.c. below, GPU Nuclear will make available a reasonable

amount of funds to enable a fully-qualified third party or a fully-qualified supporting laboratory, agent, or contractor of such third party (hereinafter collectively referred to as the

" third party") to:

(1) Purchase the monitoring equipment listed

below for the use of the Group;

(2) Provide routine calibration and maintenance for the equipment, except as otherwise provided;

(3) Train members of the Group and/or community

to use the equipment; and

(4) Provide the Group with technical expertise and advice on the equ pment and its operation,i

b. Equipment to be Purchased by Third Party. The following equipment will be purchased pursuant to Section 8.a.

above:

(1) Sixty (60) Radalerte

(a) Full ownership in and title to these

Radalerts will reside in the Group.

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(b) Following this one-time purchase of-sixty-(60) Radalerts, GPU? Nuclear'will1have-no continuingLobliga-tion to replace or repair Radalerts which malfunction.

(c) GPU Nuclear-will provide funds for the purchase of the Radalerts from International Medcom of Sebastopol, California, provided that GPU Nucle ; testing of sam-ples'of the equipment demonstrates that they meet specifications,

and provided-further that the price of each Radalert will not exceed-two hundred fifteen dollars ($215.00).

(2) Five (5) continuous low volume air samplers,

c. Eculoment'to be Purchased by GPU Nuclear. In addition to funding the purchase'of the equipment listed-in Sec-j tion 8 b. above by the qualified _ third party discussed in Section

8.d. below, G"'I Nuclear will take reasonable steps to

expeditiously:

(1) Furnish a computer, a data line, and a i printer, at Ane location chosen by the Group, for the receipt of data.from the GPU Nuclear real-time gamma radiation monitoting system-("Reuter-Stokes"). GPU Nuclear's commitment'to supply _

such' data vill continue-for the period of recognition of the Group by GPU Nuclear, or for so long as G"U Nuclear continues to utilize the gamma radiation monitoring system, whichever period.

is shorter. GPU Nuclear will provide for the maintenance of the

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data line. The Group vill provide for the maintenance of the computer and printer.

(2) Purchase for the Group a computer and an on-line subscription for National Weather Service meteorological

data. The Group vill provide for the maintenance of the computer and the costs associated with the use of a modem for purposes of

the on-line subscription.

d. Third Party Selection and Duties.

(1) The third party vill be selected by Epstein

and/or the Group, within fifteen (15) days from the execution of

this Agreement, from the following list of eligible candidates:

(a) Dickinson College

(b) Pennsylvania State University

(2) Utilization of the third party candidate selected by Epstein and/or the Group is contingent upon the nego-tiation of reasonable terms satisfactory to GPU Nuclear and the

third party for the payment of the third party and the fulfill-

ment of the duties and obligations of the third party.

(3) Any supporting laboratory, agent, or contrac-

tor utilized by the third party to perform any duties of the third party arising under this Agreement must be approved by GPU

Nuclear and Epstein.

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(4)- The third party will ensure that all members of the community who vill operate the equipment purchased pursu-ant to this Section or who vill obtain readings from such equip-ment are trained to properly operate the equipment-and to under-stand equipment readings. The third party will ensure that such meabers of the community have a proper understanding of back-ground radiation and fluctuations in background radiation.

(5) The third party will collect weekly the fil-ters and cartridges of the low volume air samplers for analysis.

Analyses perfo-med will include weekly gross beta and alpha mea-surements, monthly gamma isotopic analysis, weekly I-131 analy-sis, and semi-annual Sr-90 analysis.

(6) The third party will not be required to cali-brate, maintain or repair the Radalerts purchased pursuant to

Section 8.b.(1) of this Agreement.

-(7) The third party will contemporaneous 1y pro-vide GPU Nuclear with copies of all reports and written analyses provided by the third party to the Group. The third party will provide to the Group and to GPU Nuclear quarterly reports regard-ing monitoring data with respect to the low volume air samplers discussed in section 8.b.(2) of this Agreement.

(8) The third party and any supporting labora-tory, agent, or contractor will report only to the Group, to

GPU Nuclear and the NRC, upon its request, with respect to any activities within the scope of this Agreement. Neither the third party or any supporting laboratory, agent, or contractor will be authorized to issue press releases, hold news conferences, or report to other persons or groups with respect to any activities within the scope of this Agreement. However, nothing herein shall prevent any' person or party from inft ' ming the NRC of the content of any report or of any activities within the scope of this Agreement, regardless of whether such communication is oth-erwise required.

9. Robotics Research. During the term of this Agreement, GPU Nuclear will each year provide one hundred thousand dollars

($100,000) to Carnegie Mellon University or to another qualified

institution, or will budget a like amount for GPU Nuclear person-nel, or some combination thereot, for the purpose of tracking

i research in the field of robotics, studying the applicability of such research to the decommissioning of TMI-2, and influencing, if necessary, the course of such research.- GPU Nuclear will pro-

vide the Group with a copy of a yearly report describing the

l foregoing expenditures on robotice research.

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l Storace of Spent Fuel / Radioactive Waste. GPU Nuclear 10.

agrees that, for the length of PDMS, GPU Nuclear will not store spent fuel or radioactive vaste from the Oyster Creek Nuclear Plant or from any other facility at TMI-2, p,covided that GPU

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- -~ Nuclear may store spent fuel and radioactive vaste from Three

Mile Island Unit 1 at TMI-2,

11. Decommissionino of TMI-2. GPU Nuclear agrees that, at the conclusion of PDMS, TMI-2 will enter decommissioning in accordance with NRC regulations. TMI-2 vill not be refurbished

as a nuclear plant electric generation facility.

12. Ageldent-Generated Water. GPU Nuclear will dispose of accident-generated water in accordance with the TMI-2 license and

Technical Specifications. " Accident-Generated Water" is defined

as that term is defined in the TMI-2 Technical Specifications.

The THI-2 Technical Specifications currently provide that "ACCI-DENT GENERATED WATER shall be disposed of in accordance with NRC-approved procedures."

13. Bankruptcy and the Collection of Decommissionino Funds.

GPU Nuclear agrees that, in the event that (a) GPU Nuclear or any of the THI-2 owners should become the subject of proceeding-under Chapter 11 of the Bankruptcy Code (or any statutory.succes-

sor provisions), and (b) if permitted to do so, GPU Nuclear will

call to the attention of the Bankruptcy Court the provisions of

the THI-2 Trust Agreements and the intent thereof and the settle-ment of the PDMS Proceeding.

14. Epstein's Counsel Fees. GPU Nuclear will pay the rea-

sonable attorneys' fees and costs incurred by Epstein in

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connection with efforts on this settlement in an amount not to exceed twenty-five thousand dollars ($25,000) at usual and cus-tomary market rates. Epstein will not be reimbursed for any

legal counsel fees incurred in connection with litigating the PDMS Proceeding. For purposes of this Section, legal counsel fees incurred in connection with reviewing pleadings filed in the PDMS proceeding in order to prepare for settlement negotiations,

other forms of preparing for settlement negotiations, and actu-

ally participating in settlement negotiations are deemed to have been incorred in connection with settlement efforts. Legal coun-sel fees incurred in connection with preparing pleadings and

affidavits and consulting with experts and technical consultants

for purposes of preparing such pleadings and affidavits were not incurred in connection with settlement efforts. Within seven (7) days following the execution of this Agreement, Epstein will pro-vide to GPU Nuclear an accounting of his legal counsel fees,

including pertinent time records, in sufficient detail to enable GPU Nuclear to ensure that reimbursed fees are limited to those

fees reasonably incurred in connection with settlement efforts.

Within fifteen (15) days following its receipt of such an

-accounting, GPU Nuclear will provide the reimbursement of such fees that it has concluded were reasonably incurred in connection with settlement efforts.

15. NRC Staff as Sionatory. Although GPU Nuclear and 2pstein agree.that the NRC Staff has no obligatiors or duties of-

4 any kind shatsoever arising under the provisions of this Agree-ment, GPU Nuclear and Epstein have agreed to jointly recommand to,

the NRC Staff that the NRC Staff join GPU Nuclear and Epstein as signatory to this Agre9 ment. GPU Nuclear and Epstein have fur-ther agreed that this Agreement shall not take effect unless and until the NRC Staff becomes a signatory to this Agreement. GPU Netiear and Epstein further agre0 that the NRC has no obligation to implement, enforce or supervise any of the terms, conditions or duties created by this Agreement.

16. Press Release. GPU Nuclear and Epstein agree to issue a joint press release announcing t..'s Agreement within forty-eight (48) hours after the execution of this Agreement.
17. Other Necotiations and Aarecments. Epstein and GPU Nuclear agree that this Agreement shall not impact on the negoti-ations between community groups or indsviduals currently negoti-
ating with the THI Public Health Fund for radiation monitoring equipment.
18. Costs and Attornevs' Fees in Case of Default. In the event that either party initiates litigation seeking enforcement of or compliance with any term of this Agreement, the prevailing party in any rJch litigatica shall be entitled to recover the reasonable attorneys' fees and costs from the other party. This-

! Section applies only to Epstein and GPU Nuclear, and confers no rights or obligations on the NRC.

. - - - -.m --., -=,, _ - -

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6

19. Entirt Aareement. This Agreement colistitutes the entire agreement. between the parties and no other agreement with regard to the matters herein shall be binding on the parties except by written amendment to this Agreement. Except for the

terms and conditions enumerated in this Agreement, the parties het'by acknowledge and agree that none of the parties has made any other promises, warranties or representations to any other.

party hereto regarding any aspect of the settlement of the

matters referred to in this Agreement, and that any such prom-

ises, varranties or representations that may be alleged to have been made are hereby merged herein.

20. Cpunterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an origi-nal and all of which together shall be deemed one and the same instrument.
21. No Presumptign Acainst the Drafters. This Agreement shall be deemed to have been drafted jointly by GPU Nuclear and Epstein and shall be construed without regard to any presumption or other rule requiring construction against the party causing

this Agreement to be drafted.

22. No Admissions. Neither tt9 drafting or execution of this Agreement nor anything contained herein is intended to be, or shall be deemed to be, an admission of fact by any party with respect to any matter relating to the PDMS Am6ndment.

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23. Further Assurances'. Epstein and GPU Nuclaar will exe-j

t cute, after the execution of this Agreement, all documents rea-l sonably necessary to effectuate the intent of this Agreement.

24. Successors, Assions, Etc. This Agreement is binding I upon and for-the benefit of Epstein-and GPU Nuclear and their

respective heirs, executors, administrators, successors and i assigns, wherever the context requires or admits.

25. Sole Benefit. Subject to the provisions of Section 24

of this Agreement, i t is the intention of the parties that this

Agreement and all of its conditions and provisions are for the

sole benefit of Epstein and GPU Nuclear, and for the benefit of l

no other person. Nothing expressed or referred to in this Agree-ment is intended or shall be construed to give any person other than Epstein or GPU Nuclear any legal or_ equitable right, remedy, l or claim under, or in respect to, this Agreement or any of its

provisions.

i 26. Reservation =of Richts. Notwithstanding any provision

L in this Agreement, nothing herein shall abridge the--right or ability of any-party to this Agreement,for any, employee, member,

- consultant or contractor of any party, or any group or member.of-the public to appear before the NRC, and nothing herein shall

abridge the right or' ability of such party, person or group to

- communicate or to deal with the NRC, or with the Staff or any= 1

- other part of the NRC. The NRC, in signing this Agreement, does

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4 a

so solely as a venicle to settle this proceeding and neither agrees or disagrees with its other terms or provisions as they are agreements between GPU Nuclear and Epstein. Bucher, nothing in this agreement shall be interpreted to in any way limit any right, duty, discretion, authority or regulatory responsibility

of the NRC, its staff, contractors or consultants.

27. Severability. If any provision of this Agreement is

held to be invalid or unenforceable, all of the remaining provi-

sions of this Agreement shall nevertheless remain in full force-

and effect and shall be binding upon the parties.

28. Authorizations. Each person signing this Agreement represents and warrants that he or she is duly authorized and empowered to act on behalf of and sign for the party for whom he

or she has signed.

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. 4 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of this g_T day of September,

1 1992.

ERIC J. EPSTEIN

By: I4

/

GPU, CLEAR CORPORATION

By2 /4..

UNITED STATES NUCLEAR REGULATORY COMMISSION

By: # s' /

0130:116VJC.92

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UNITED STATES OF AMERICA ai;U.'NAC NUCLEAR REGULATORY COMMISSION

BEFORE THE ATOMIC SAFETY AND LICENSING BOARD-g g p) q

In the Matter of ) O'o A 9unu.r<com w 4i, as

)

GPU NUCLEAR CORPORATION ) DocketNo.50-3YdI6LA

) (PDMS)

(Three Mile Island Nuclear Station )

Unit 2) )

7 We ' ATE OF SERVICE

I hereby certify that a copy of the foregoing " Joint Motion For Reconsideration" dated October-8, 1992, was served upon the following by deposit in the United States mail, first class, this 8th day of October, 1992:

Peter B. Bloch, Esq. Docketing and Service Branch Atomic Safety and Licensing Office of the Secretary Board Panel U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555

Dr. Frank F. Hooper Adjudicatory File 4155 Clark Road-Atomic Safety and Licensing Ann Arbor, Michigan 48104 Board Panel U.S. Nuclear Regulatory Dr. Charles N. Kelber Washingtor., D.C.Commission20555 Atomic Safety and LicensingBoard Panel

U.S. Nuclear Regulatory John T. Hull, Esq.

Commission Arlene A. Jorgensen, Esq.

Washington, D.C. 20555 Mitzi A. Young, Esq.

Office of the General Counsel Mr. Eric J. Epstein U.S. Nuclear Regulatory 2308 Brandyvine Drive Commission

Harrisburg, PA 17110 Washington, 0.C. 20555 Lynne Bernabei, Esq. Mr. Robert E. Rogan

Deborah Epstein, Esq. TMI Licensing Director Bernabei & Katz GPU Nuclear Corporation l

1773 T Street, N.W. P. O. Box 480 Washington, D.C. 20009 Middletown, PA 17057-0191-

l A. M Thomas A. Baxtor

I

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Exhibit 4

AmerGen AmerGen Energy Company, LLC A PECO Energy/British Energy Company Three Mile Island Unit 1 Route 441 South, P.O. Box 480 Middletown, PA 17057 Phone: 717-944-7621

February 16, 2000 5928-00-20028

U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555

SUBJECT:

THREE MILE ISLAND, UNIT 1 (TMI UNIT 1)

OPERATING LICENSE NO. DPR-50 DOCKET NO. 50-289 JOINT RECOMMENDATION THAT NRC STAFF ACKNOWLEDGE RECEIPT OF SETTLEMENT AGREEMENT

Dear Sir/Madam:

A Settlement Agreement (the "Agreement") has been made between Eric J. Epstein ("Mr. Epstein") and AmerGen Energy Company, LLC ("AmerGen"). Although AmerGen and Mr. Epstein agree that the NRC Staff will have no obligations or duties of any kind whatsoever arising under the provisions of this Agreement, the parties have agreed to jointly recommend to the NRC Staff that the NRC Staff acknowledge receipt of this Agreement upon the approval of the license transfer of TMI Unit 1. A copy of the Agreement is enclosed.

Please contact Adam Miller of TMI-1 Regulatory Engineering at (717) 948-8128 if you have any questions regarding this receipt acknowledgement.

Sincerely,

John B. Cotton,, stein

Vice President, TMI Unit 1

AWM

Enclosure

cc: USNRC TMI Senior Resident Inspector USNRC TMI-1 Project Manager NRC Regional Administrator, Region I Sub File 00041

AocQ(

January 9, 1999

SETTLEMENT AGREEMENT

This Settlement Agreement (the "Agreement") is made between Eric J. Epstein ("Mr.

Epstein"). and AmerGen Energy Company, LLC ("AmerGen"), and is based on the following recitals. all of which are hereby agreed to be true:

RECITALS

A. Metropolitan Edison Company, Jersey Central Power & Light Company and Pennsylvania Electric Company, dfb/a GPU Energy, and GPU Nuclear, Inc. (collectively

"-GPU") are the current holders of Facility Operating License No. DPR-50 issued by the United States Nuclear Regulatory Commission ("NRC") for the Three Mile Island Nuclear Station Unit I ("TMI-l") located in Dauphin County, Pennsylvania.

B. GPU has entered into an agreement with AmerGen to sell TMI-1 to AmerGen, and AmerGen and GPU have filed an application with the NRC to transfer the TMI-1 license to

,A-merGen and make certain conforming administrative amendments to the license in connection with this transfer.

C. Mr. Epstein has an interest in the continued safe operation of TMI-1 and is prepared to file a petition for leave to intervene in the NRC license transfer proceeding.

D. AmerGen wishes to resolve Mr. Epstein's concerns about the proposed license transfer. and settle all possible claims and disputes of any nature between Mr. Epstein, on the one hand, and AmerGen and GPU, on the other hand, relating in any way to the operation of TMI-l and the proposed license transfer.

E. This Agreemernt is hereby established in order to, among other things, provide for the payment by AmerGen of costs associated with certain Authorized Activities, as defined herein, related to TMI-1 which will be undertaken by or on behalf of Mr. Epstein in accordance

with any statutory or regulatory requirements which are or may hereafter become applicable to this Agreement.

NOW, THEREFORE, recognizing that it is in the public interest to provide for the timely dissemination and availability of information regarding the operation of TMI-1 and the ability of the community living or working in the vicinity of TMI-1 to monitor their environment, and in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby represent, warrant and agree as follows:

I. Term of Agreement. Except as otherwise provided in this Agreement, the term of this Agreement, and the parties' rights and obligations under this Agreement, shall be for a period of five (5) years, commencing on the date the NRC license for TMI-1 is transferred to AmerGen, and ending on the fifth anniversary thereof, unless otherwise extended by mutual agreement of the parties hereto.

2. Status of Petition for Leave to Intervene. Upon the execution of this Agreement, Mr.

Epstein represents and warrants that he will not file a petition for leave to intervene in the pending NRC license transfer proceeding for TMI-l, nor file a complaint or petition for leave to intervene in any other proceeding before any agency or court related to the proposed sale of TMI

1 to AmerGen, either on his own behalf or on behalf of any group with which he is affiliated.

3. Absence of Contested Proceeding. This Agreement and all of AmerGen's performance obligations under this Agreement are absolutely conditioned upon the absence of any contested proceeding, before the NRC or before any reviewing court, challenging any aspect of the

proposed license transfer to AmerGen. Notwithstanding this Agreement, in the event that a hearing is otherwise ordered by the NRC or a complaint or petition for review initiating a lawsuit is filed in any court which seeks to challenge any aspect of the proposed license transfer, this Agreement will become voidable at the option of AmerGen.

4. Recognition of EFMR Monitoring Group (1) A-merGen recognizes that Mr. Epstein and the EFMR Monitoring Group at Three Mile Island, hereinafter referred to as the "Group," have a special interest in the continued safe operation of TMI-1. For the purposes of maintaining continuity and enhancing community awareness of TMI-1, during the term of this Agreement AmerGen will continue such recognition of the Group.

(2) The Group reports to a Board consisting of three (3) persons, and Mr. Epstein or his designee will be the Coordinator of the Group and the Board.

(3) All Group members must live or work in the geographic vicinity of TMI-I (i.e.,

within a twenty-five (25) mile radius of TMI-1). Board members will be proposed by Mr.

Epstein. AmerGen or other members of the community living or working in the geographic vicinity of TMI-1. All Board members must be approved by AmerGen and Mr. Epstein, but approval of proposed Board members will not be unreasonably withheld by either party.

(4) The Group will not be recognized or discussed in the TMI-1 Technical Specifications or FSAR or in any other NRC-authorized or NRC-licensed program.

(5) At the end of the initial five year term of this Agreement, the Board may recommend that AmerGen continue its recognition of the Group. Based on any such recommendation, AmerGen may choose, in its absolute, unreviewable discretion, to continue recognition of the Group beyond the initial five year term of this Agreement.

5. Benefits to Which the Group is Entitled (1) GeneralStatus. The Group is not generally entitled to any special benefits or privileges not available to the general public. The only benefits and privileges available to the Group are those specified in this Agreement.

(2) Reports-Etc. The Group will be entitled to receive from AmerGen copies of all AmerGen reports and correspondence relating to TMI-I that are filed with the NRC and that would otherwise be available upon request to members of the public, as follows:

(a) AmerGen will forward copies, or otherwise arrange for delivery of hard or electronic copies to the Group, or access by the Group to hard or electronic copies, of all NRC Inspection Reports, Licensee Event Reports, Notices of Violation, Enforcement Actions, Non-Cited Violations, the Annual Radiation Environmental Operating Report and SALP Reports (or any NRC assessment that becomes the successor to SALP) within ten days of their issuance by AmerGen, or receipt by AmerGen, as applicable. AmerGen will also forward copies of the PECO Energy and British Energy Annual Reports on a timely basis.

3 (b) With respect to documents filed with the NRC not identified in Paragraph 5.(2)(a) immediately above, AmerGen will provide the Group with a list of such reports and correspondence, for each quarter, from the NRC's Bibliographical Retrieval System recording the documents placed on the TMI-1 docket. From this list, the Group shall designate the reports and correspondence which it wishes to receive copies of within ten days of receipt of such list.

Copies of the designated reports and correspondence will be mailed to the Group within ten days of AmerGen's receipt of the request for copies. The costs of any quarterly request exceeding 500 pages will be paid for by EFMR at the rate charged by the NRC's Public Document Room. The Group will also be placed on a mailing list for receipt of copies of all AmerGen press releases related to TMI-I and other information provided to the media relating to TMI-1 in a timely manner.

(3) Annual Briefing. kmerGen will provide the Group with an annual briefing related to TMI-l operations at a mutually agreeable time and place. Within thirty days prior to the scheduled date of such briefing, the Group will provide AmerGen with a list of the specific topics which it wants AmerGen to cover at the briefing. AmerGen will provide a general overview of TMI-I operations during the past year at the briefing and make a good faith effort to cover all of the designated topics, respond to specific questions at the briefing, and provide appropriate follow-up information to the Group.

(4) Certain NRC Meetirgs. Subject to applicable NRC restrictions and requirements, AmerGen will provide the Group with at least seventy-two hours advance notice of, and an opportunity to attend, any public meeting with the NRC with respect to TMI-1 regarding the following subject areas: (a) steam generator tubes or water chemistry; (b) radioactive waste issues, including but not limited to, low level waste, high level waste, and spent fuel issues; (c) security issues; and (d) radiation monitoring.

(5) Other Information in the Event of NRC Shutdown Order. In the event that the

NRC issues an Order requiring the shutdown of TMI-1, other than a generic Order affecting all plants or all plants of a specific class or type, AmerGen agrees to provide the Group with access to the following information, subject to the terms and conditions set forth below:

(a) Within a reasonable time after receipt of a written request from the Group, AmerGen shall make available for review by Group representatives copies of any INPO Final

4 Site Evaluation Reports relating to TMI-l or INPO Final Corporate Support Evaluation Reports relating to TMI-I which were given to AmerGen during the prior twelve (12) month period. The Group may review such reports once during the calendar year. AmerGen will excise from tINPO Final Corporate Support Evaluation Reports any references to plants other than TMI-1.

(b) Any review of INTO reports conducted by Group representatives pursuant to this Agreement shall be subject to the following conditions:

(i) Any review of INPO reports shall be made at AmerGen's offices in the presence of AmerGen representatives. The Group's representative(s) will not request copies of any or all of a report, but they may take notes while reviewing a report.

(ii) Any notes taken by the Group's representatives during a review of an INTO report may be viewed solely by Group personnel, and shall at all times remain in the Physical custody, protection and control of the Group.

(iii) Neither the Group, nor the Group representative(s) who reviewed any IN'PO report, may disclose to any persons (other than members of the Group), or otherwise publicize any information obtained from any review of an INPO report. The Group, however, may make comments to the NRC which include factual information obtained from the review of an INrPO report, may disseminate copies of any official written comments made to the NRC, and may publicly provide information necessary to explain those official written comments. The Group shall not, however, make statements paraphrasing conclusions or observations in any INPO report, nor otherwise reveal confidential information contained in any INPO report.

(iv) Notwithstanding any provisions in Paragraph 5.(5)(b)(iii) immediately above, neither the Group nor its representative(s) may disclose to any persons, other than the members of the Group or the N'RC, the names of any persons contained in any INPO report or any information from which identification of such persons could reasonably be made.

In the event any comments made to the NRC pursuant to Paragraph 5.(5)(b)(iii) immediately above include the names of any persons contained in any INPO report, or any information from wvhich identification of such persons could reasonably be made, the Group shall (x) request in advance that the NRC keep such names or information confidential pursuant to 10 CFR §§ 2.790, 9.17. and (y) not release any copies of its official written comments without excising those names or such information from the comments.

5 (v) Before any representative of the Group may review any INPO report pursuant to this Agreement or view any notes taken in connection with such a review by any Group representative(s), such person shall first advise AmerGen in writing that he or she has read and understands Paragraph 5.(5) of this Agreement and all subparts thereof and agrees to be bound thereby.

(6) Certain Equipment and Services. The Group will be entitled to the benefits

discussed in Section 8 of this Agreement regarding certain equipment and services to be provided by AmerGen. Costs allocated to AmerGen under Section 8 will not be charged to the Group's budget.

(7) BudgeI.

(a) AmerGen will provide the Group with an annual budget to be used to defray the reasonable administrative expenses of the Group directly related to its expressed intent to monitor TMI-1 activities. The annual budget will consist often thousand dollars per year (S 10,000.00), indexed to inflation as described in Paragraph 5.(7)(d). Reasonable administrative expenses would include, for example, reasonable expenses for payments for statistician and/or newsletter editorial services, the purchase of computers, computer upgrades, printers, software, computer supplies, photocopying machine, facsimile machine, a dedicated telephone line and answering machine, file cabinets, batteries, and other office equipment and supplies (e.g.,

pencils, pens, paper clips, envelopes, letterhead postage), service contracts for maintenance of such equipment, and reimbursement for reasonable expenses incurred in traveling related to the Group's monitoring activities. Any use of the budget for reimbursement for fuel expenses must be supported by a written log including, at a minimum, the date of trip, the points of origination and destination, and odometer readings before and after the trip. This listing of examples of expenses that are or are not covered by the Group's budget is not intended to be exhaustive.

However. no part of the budget shall be used for the payment of salaries, benefits, or any other form of direct or indirect compensation for any member or agent of the Group or for the payment of legal fees or expenses, consultant fees or expenses, or expert fees or expenses, except that the Group may use part of the supplemental payment provided on February 1, 1999 pursuant to Paragraph 5.(7)(b) for the purpose of compensating Mr. Epstein for his time and reasonable expenses in negotiating this Agreement. AmerGen reserves the right to determine whether 6

specified expenses not listed above are reasonable administrative expenses. The Group will resolve any reasonable doubts regarding the allowance of any expense by seeking AmerGen's approval of the expense in advance. The Group will use all funds paid to the Group under this Section and all earnings accumulated or to be accumulated thereon (the "Funds") for the purposes described in this paragraph (the "Authorized Activities").

(b) On February 1, 1999, AmerGen will pay, in the form of a check made out to the Group in the amount of five thousand dollars ($5,000.00), as a supplemental payment for purposes funding the Group's continuation of activities pursuant to the Settlement Agreement dated September 14, 1992 between Mr. Epstein and GPU, subject to the terms of this Agreement.

(c) Within thirty (30) days of the commencement of the initial term of this

Agreement. AmerGen will pay, in the form of a check made out to the Group, the amount often thousand dollars ($10,000.00). In each succeeding year on the anniversary date thereof, AmerGen will pay, in the form of a check made out to the Group, the amount often thousand dollars (S 10,000.00), increased for inflation as provided Paragraph 5.(7)(d) below, subject to receipt of a certificate, satisfactory in form and substance to AmerGen as described in Section 5.(7)(e) below, and subject to any credit recognized pursuant to Section 5.(7)(g) below.

(d) Following the first payment made after the commencement of the initial term of this Agreement, the annual budget in each year shall be increased from the budget in the prior year. to adjust for inflation, at the rate of the greater of(x) 5% per annum, or (y) the annual rate of inflation as represented by the Consumer Price Index published by the U.S. Bureau of Labor Statistics as of December 31 in the previous calendar year.

(e) The Group will provide to AmerGen, not later than thirty (30) days prior to the completion of each fiscal year, a certificate, signed by a duly authorized representative of the Group, which shall include the following:

(i) A statement that all Funds provided by AmerGen were used for reimbursement of costs of Authorized Activities as described in the Agreement; (ii) An identification (in sufficient detail to permit audit thereof in accordance with this Agreement) of the work services, materials and equipment and related costs performed. rendered or acquired in connection with the Authorized Activities which gave rise to the costs for which the Funds were used; and

7 (iii) A cumulative year-by-year summary of the Funds, identifying original funds provided by AmerGen and interest or other earnings.

(f) The Group shall maintain reasonable accounting and other records of the Funds and the expenditures made by the Group for the Authorized Activities which shall be made available for examination by AmerGen or its duly authorized representative upon request.

(g) The Group's first fiscal year will commence on the date the funds are received from AmerGen and will conclude on the last day of the same month plus one year.

Subsequent fiscal years will be on a succeeding twelve (12) month basis. Expenses incurred but not yet paid for can be reported in the year incurred or actually paid, provided the reporting of the expense is consistently applied across fiscal years. With the exception of reimbursement for expenses reported in the year incurred, any funds not spent in one fiscal year will be counted as a credit against the next year's payment of the Group's budget.

(h) At the end of the last fiscal year for which AmerGen has agreed to recognize the Group, the Group will provide to AmerGen the certificate described in Section 5.(7)(e) above. The Group will reimburse AmerGen for any funds expended during the last fiscal year which are found not to relate to the Authorized Activities. All funds not spent by the Group will be returned to AmerGen within forty-five (45) days following the end of such last fiscal year.

(i) In the event this Agreement is not extended by a term of at least one year after the end of its initial five year term, AmerGen shall pay, in the form of a check made out to the Group, the amount often thousand dollars ($10,000.00) for purposes of winding up the

affairs of the Group. This amount is not subject to adjustment for inflation as provided in Paragraph 5.(7)(d) relating to the Group's annual budget.

6. Non-Proliferation and Peaceful I Jses of Nuclear Energy. AmerGen supports cooperation

between the United States and the United Kingdom involving the peaceful uses of nuclear energy. AmerGen and the Group are opposed to and will not participate in any arrangement involving the full or partial ownership of U.S. nuclear generating facilities by any foreign country, that is affiliated with state sponsored terrorism, that is subject to American technological or military boycotts, restrictions or sanctions, or that has refused to sign the Treaty on the

8 Non-Proliferation of Nuclear Weapons, or a foreign entity from any such country. AmerGen will address its compliance with its commitments under this Paragraph 5 at each Annual Briefing provided pursuant to Paragraph 5.(3).

7. Community Responsibility and CoMorate Culture.

(1) AmerGen agrees that it will abide by applicable provisions of the Interim Code of Conduct approved by the Pennsylvania Public Utility Commission ("PaPUC") and imposed on Electricity Generation Suppliers ("EGS's") affiliated with PECO Energy and the applicable provisions of the Code of Conduct for EGS's which will be adopted in the pending Competitive Safeguards Rulemaking Proceeding before the PaPUC. AmerGen will also foster a culture of openness and enhanced environmental awareness, as exemplified by its Annual Briefing to the Group, its public meetings with other groups and interested members of the community, and its Annual Environmental Report.

(2) AmerGen is committed to corporate involvement and investment in the local community and will maintain levels of participation in the community commensurate with the existing practices of GPU Nuclear in connection with the safe operation of TMI-1.

(3) AmerGen will continue to participate in industry groups such as INPO and the B&W Owners' Group, to the extent such participation is consistent with good utility practices, as defined in the Asset Purchase Agreement.

(4) AmerGen also recognizes that the safe and reliable operation of TMI-lI requires

the maintenance of a highly skilled and technically qualified workforce, and it is therefore committed to maintain a highly skilled and technically qualified workforce of sufficient number to be consistent with good utility practices as defined in the Asset Purchase Agreement, even if such numbers are in excess of the minimum number of personnel necessary to meet NRC requirements.

8. Decommissioning. Subject to the terms and definitions set forth in the TMI-1 Asset Purchase Agreement, dated as of October 15, 1998, upon the transfer of the NRC license for TMI-l, AmerGen will assume all liabilities and obligations of GPU related to the Decommissioning of TMI-1. As such, AmerGen acknowledges that in the event the

9 decommissioning funds provided pursuant to the Asset Purchase Agreement are insufficient to complete the decommissioning of TMI-1, AmerGen will be responsible for any such additional costs, and AmerGen will not seek recovery of such costs from ratepayers under the rate cap exception of Section 2804(4)(iii)(F) of the Public Utility Code, 66 Pa.C.S. § 804(4)(iii)(F).

9. Equipment.

(1) AmerGen will supply the Group with a new laptop personal computer, a docking station for such computer, including external monitor and keyboard, and a new printer for use in conducting the business of the Group. AmerGen will consult with Mr. Epstein and work in good faith to provide equipment agreeable to him and suitable for the Group's needs.

(2) AmerGen will maintain and/or supply the Group with the ability to access and print data from a real-time gamma radiation monitoring system for the TMI-1 site, such as the Reuter-Stokes system currently being operated by GPU or a technically equivalent substitute system. AmerGen will continue to maintain this system to the extent required by NRC and to the extent required by its agreements with the counties within the ten mile emergency planning zone for TMI-I (Cumberland, Dauphin, Lancaster, Lebanon, and York). AmerGen's commitment to supply such data will continue for the period of recognition of the Group by AmerGen.

AmerGen will also supply the Group with an Internet connection and applicable software to enable the Group to access National Weather Service meteorological data. The Group will provide for the maintenance of the computer and printer, and the costs associated with the Internet connection.

10. Storage of Spent Fuel/Radioactive Waste. AmerGen agrees that, during the term of this

Agreement, AmerGen will not store spent fuel or radioactive waste from any nuclear reactor other than TMI-I and TMI-2 at the TMI site.

11. Acknowledgment By NRC Staff. Although AmerGen and Mr. Epstein agree that the NRC Staff will have no obligations or duties of any kind whatsoever arising under the provisions of this Agreement, the parties have agreed to jointly recommend to the NRC Staff that the NRC Staff acknowledge receipt of this Agreement upon the approval of the proposed license transfer

10 by the NRC. Mr. Epstein further agrees that the NRC will have no obligation to implement, enforce, or supervise any of the terms, conditions, or duties created by this Agreement as a result of such acknowledgment.

12. Joint Press Release. AmerGen and Mr. Epstein agree that they will make no public announcements, statements, or other disclosure regarding any of the details of this Agreement until they release a joint press statement announcing this Agreement, the substance and timing of which will be agreed upon by the parties. Prior to the license transfer, the parties shall consult before issuing any public announcement, statement or other disclosure with-respect to this Agreement.
13. Costs and Attorneys' Fees in Case of Default. In the event that either party initiates litigation seeking enforcement of or compliance with any term of this Agreement, the prevailing

party in any such litigation shall be entitled to recover the reasonable attorneys' fees and costs from the other party. This Section applies only to Mr. Epstein and AmerGen, and confers no rights or obligations on the NRC.

14. Entire Agreement. This Agreement constitutes the entire agreement between the parties and no other agreement with regard to the matters herein shall be binding on the parties except by written amendment to this Agreement. Except for the terms and conditions enumerated in this Agreement, the parties hereby acknowledge and agree that none of the parties has made any

other promises, warranties or representations to any other party hereto regarding any aspect of the settlement of the matters referred to in this Agreement, and that any such promises, warranties, or representations that may be alleged to have been made are hereby merged herein.

15. Co.unitrarts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed one and the same instrument.

11

16. No Presumption Against the Drafters. This Agreement shall be deemed to have been drafted jointly by AmerGen and Mr. Epstein and shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted.
17. No Admissions. Neither the drafting or execution of this Agreement nor anything contained herein is intended to be, or shall be deemed to be, an admission of fact by any party with respect to any matter relating to the proposed license transfer.
18. Further Assurances. Mr. Epstein and AmerGen will execute, after the execution of this

Agreement, all documents reasonably necessary to effectuate the intent of this Agreement.

19. Successors. Assigns, Etc. This Agreement is binding upon and for the benefit of Mr.

Epstein and AmerGen and their respective heirs, executors, administrators, successors, and assigns, wherever the context requires or admits.

20. Sole.Benefi. Subject to the provisions of Section 18 of this Agreement, it is the intention

of the parties that this Agreement and all of its conditions and provisions are for the sole benefit of Mr. Epstein and AmerGen, and for the benefits of no other person. Nothing expressed or referred to in this Agreement is intended or shall be construed to give any person other than Mr.

Epstein or AmerGen any legal or equitable right, remedy, or claim under, or in respect to, this Agreement or any of its provisions.

21. Reservation of Rights. Notwithstanding any provision in this Agreement, nothing herein shall abridge the right or ability of any party to this Agreement, or any employee, member, consultant or contractor of any party, or any group or member of the public to appear before the NRC, and nothing herein shall abridge the right or ability of such party, person or group to communicate or to deal with the NRC or with the Staff or any other part of the NRC. The NRC Staff, in acknowledging this Agreement, does so solely to acknowledge the existence of this Agreement and the settlement between AmerGen and Mr. Epstein. The NRC Staff neither agrees

12 or disagrees with its other terms or provisions as they are agreements between AmerGen and Mr.

Epstein. Further, nothing in this Agreement shall be interpreted to in any way limit any right, duty, discretion, authority or regulatory responsibility of the NRC, its staff, contractors, or consultants.

22. Binding Effect. Severability. This Agreement shall be binding upon Mr. Epstein and AmnerGen in accordance with its terms even if the NRC Staff does not formally acknowledge this Agreement. If any provision of this Agreement is held to be invalid or unenforceable, all of the remaining provisions of this Agreement shall nevertheless remain in full force and effect and shall be binding upon the parties.
23. Authorization. Each person signing this Agreement represents and warrants that he or she is duly authorized and empowered to act on behalf of and sign for the party for whom he or she has signed.

13 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of this 9th day of January, 1999.

Date: 4ihMX

AmerGen ergy an-y, LLC Date:. B By:.?

RECEIPT OF THIS AGREEMENT ACKNOWLEDGED by the Staff of the United States Nuclear Regulatory Commission on the day of, 1999.

United States Nuclear Regulatory Commission

Date: By:

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