ML070780051
| ML070780051 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 04/06/2007 |
| From: | Mahesh Chawla NRC/NRR/ADRO/DORL/LPLIII-1 |
| To: | Burke T, Cooper D, Fenech R, Hutchinson C Consumers Energy, Entergy Nuclear Operations, Entergy Nuclear Palisades, Nuclear Management Co |
| J. Poole, LPL3-1 | |
| Shared Package | |
| ML07080038 | List: |
| References | |
| TAC MD2954 | |
| Download: ML070780051 (39) | |
Text
Official Use Only - Proprietary InformationOfficial Use Only - Proprietary InformationApril 6, 2007Mr. C. Randy HutchinsonMr. Robert A. Fenech, Senior Vice PresidentSenior Vice President-DevelopmentNuclear, Fossil, and Hydro Operations Entergy Nuclear Operations, Inc.Consumers Energy Company 1340 Echelon Parkway1945 Parnall Rd.
Jackson, MS 39213Jackson, MI 49201Mr. Terence A. BurkeMr. Douglas E. CooperVice President and SecretaryChief Nuclear Officer Entergy Nuclear Palisades, LLCNuclear Management Company, LLC 27780 Blue Star Memorial Highway700 First Street Covert, MI 49043Hudson, WI 54016
SUBJECT:
ORDER APPROVING TRANSFER OF LICENSES AND CONFORMINGAMENDMENTS RELATING TO PALISADES NUCLEAR PLANT (TAC NO. MD2954)
Dear Sirs:
By letter to the U.S. Nuclear Regulatory Commission (NRC) dated August 31, 2006, assupplemented by letters dated December 15, 2006, and March 1 and April 4, 2007, you submitted an application, pursuant to Sections 50.80 and 50.90 of Title 10 of the Code ofFederal Regulations (10 CFR), requesting approval of the transfer of Renewed FacilityOperating License No. DPR-20 for Palisades Nuclear Plant (Palisades), held by Consumers Energy Company (Consumers), as owner, and Nuclear Management Company, LLC (NMC), as licensed operator, to Entergy Nuclear Palisades, LLC, as owner, and Entergy Nuclear Operations, Inc. (ENO), as operator. The application also requested approval of the conforming amendment to the license pursuant to 10 CFR 50.80 and 50.90. Notice of the application was published in the Federal Register on November 16, 2006 (71 FR 66805). TheDecember 15, 2006, and March 1 and April 4, 2007, letters contained clarifying information, did not expand the application beyond the scope of the notice, and did not affect the applicability of the generic no significant hazards consideration determination.The NRC staff has completed its review of the application. Enclosure 1 is the Order, whichapproves the proposed license transfer, subject to the conditions described therein, and the conforming amendment. Enclosure 2 provides conforming amendment pages for Palisades.
The conforming amendment will be issued and become effective at the time the transfer is consummated. Enclosures 3 and 4 contain the non-proprietary and proprietary versions, respectively, of the NRC staff's safety evaluation (SE) related to the preceding actions. The NOTICE: Enclosure 4 contains Proprietary Information. Upon separ ation from Enclosure 4,this letter and Enclosures 1, 2, and 3 are
DECONTROLLED.
Official Use Only - Proprietary Information- 2 -Official Use Only - Proprietary Informationnon-proprietary version of the SE will be placed in the NRC public document room and added tothe Agencywide Documents Access and Management System's Publicly Available Records System Library. The Order has been forwarded to the Office of Federal Register for publication.Sincerely,/RA/Mahesh L. Chawla, Project Manager PIant Licensing Branch III-1 Division of Operating Reactor Licensing Office of Nuclear Reactor RegulationDocket No. 50-255
Enclosures:
- 1. Order 2. Conforming Amendment to DPR-20 3. Safety Evaluation (Non-proprietary)
- 4. Safety Evaluation (Proprietary)cc w/o Enclosure 4: See next page Official Use Only - Proprietary Information- 2 -Official Use Only - Proprietary Informationnon-proprietary version of the SE will be placed in the NRC public document room and added tothe Agencywide Documents Access and Management System's Publicly Available Records System Library. The Order has been forwarded to the Office of Federal Register for publication.Sincerely,/RA/Mahesh L. Chawla, Project Manager PIant Licensing Branch III-1 Division of Operating Reactor Licensing Office of Nuclear Reactor RegulationDocket No. 50-255
Enclosures:
- 1. Order 2. Conforming Amendment to DPR-20 3. Safety Evaluation (Non-proprietary)
- 4. Safety Evaluation (Proprietary)cc w/o Enclosure 4: See next pageDISTRIBUTION
- (w/o Enclosure 4)PUBLICLPL3-1 Reading File RidsNrrOd RidsNrrAdro RidsNrrDorl RidsNrrDorlLp3-1 RidsNrrPMMChawlaRidsNrrLATHarrisRidsNrrDprPfpb RidsNrrDirsIolb M. Dusaniwskyj K. Martin S. Burnell, OPA C. Lipa, R-IIIRidsRgn3MailCenterRidsOgcRp RidsAcrsAcnwMailCenter RidsSecyMailCenter RidsOpaMailCenter T. Bloomer, EDOPackage No.: ML070780038Ltr & Order: ML070780051TS Pages: ML070990108Proprietary SE: ML070780052 *per Memos dated 1/22/07 and 3/7/07 **per Email dated 3/27/07
- contingent on changes being madeOFFICELPL3-1LPL3-1/PMLPL3-1/LADIRS/IOLB/BCPFPB/BCNAME JPoole: caMChawlaTHarrisNSalgado*RCarlson*DATE03/29/0703/29/0703/21/073/7/071/22/07OFFICETECH EDOGCLPL3-1E/BCDORL/DNRR/D NAMEL-ACulp**SUttal (NLO)***LRaghavanCHaneyJDyer DATE3/27/0703/30/0704/02/0704/03/0704/06/07OFFICIAL RECORD COPY Palisades Nuclear Plantcc: (w/o Enclosure 4)
Robert A. Fenech, Senior Vice PresidentNuclear, Fossil, and Hydro Operations Consumers Energy Company 1945 Parnall Rd.
Jackson, MI 49201Mr. Douglas E. CooperChief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016Mr. C. Randy HutchinsonSenior Vice President-Development Entergy Nuclear Operations, Inc.
1340 Echelon Parkway Jackson, MS 39213Mr. Terence A. BurkeVice President and Secretary Entergy Nuclear Palisades, LLC 27780 Blue Star Memorial Highway Covert, MI 49043Arunas T. Udrys, EsquireConsumers Energy Company 1 Energy Plaza Jackson, MI 49201Regional Administrator, Region IIIU.S. Nuclear Regulatory Commission Suite 210 2443 Warrenville Road Lisle, IL 60532-4351SupervisorCovert Township P. O. Box 35 Covert, MI 49043Office of the GovernorP. O. Box 30013 Lansing, MI 48909U.S. Nuclear Regulatory CommissionResident Inspector's Office Palisades Plant 27782 Blue Star Memorial Highway Covert, MI 49043Michigan Department of EnvironmentalQuality Waste and Hazardous Materials Division Hazardous Waste and Radiological Protection Section Nuclear Facilities Unit Constitution Hall, Lower-Level North 525 West Allegan Street P.O. Box 30241 Lansing, MI 48909-7741Michigan Department of Attorney GeneralSpecial Litigation Division 525 West Ottawa St.
Sixth Floor, G. Mennen Williams Building Lansing, MI 48913Michael B. SellmanPresident and Chief Executive Officer Nuclear Management Company, LLC 700 First Street Hudson, MI 54016Jonathan Rogoff, EsquireVice President, Counsel & Secretary Nuclear Management Company, LLC 700 First Street Hudson, WI 54016Douglas E. CooperSenior Vice President and Chief Nuclear Officer Nuclear Management Company, LLC 700 First Street Hudson, WI 54016 Palisades Nuclear Plantcc: (w/o Enclosure 4)Stephen T. Wawro, Director of Nuclear Assets Consumers Energy Company Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043Laurie A. Lahti, ManagerRegulatory Affairs Nuclear Management Company, LLC Palisades Nuclear Plant 27780 Blue Star Memorial Highway Covert, MI 49043Paul A. HardenSite Vice President Palisades Nuclear Plant Nuclear Management Company, LLC 27780 Blue Star Memorial Highway Covert, MI 49043 7590-01-PUNITED STATES OF AMERICANUCLEAR REGULATORY COMMISSIONIn the Matter of ) )CONSUMERS ENERGY COMPANY )Docket No. 50-255 )Renewed License No. DPR-20NUCLEAR MANAGEMENT COMPANY ) )(Palisades Nuclear Plant) )
)ORDER APPROVING TRANSFER OF LICENSEAND CONFORMING AMENDMENT I.Consumers Energy Company (Consumers) and Nuclear Management Company, LLC(NMC) are holders of Renewed Facility Operating License No. DPR-20, which authorizes the possession, use, and operation of Palisades Nuclear Plant (Palisades). Consumers is authorized to possess and use, and NMC is authorized to possess, use, and operate Palisades.
The facility is located at the licensee's site in Van Buren County, Michigan.
II.By letter dated August 31, 2006, Consumers, NMC, Entergy Nuclear Palisades, LLC(ENP), and Entergy Nuclear Operations, Inc. (ENO) (collectively, "the applicants") submitted an application to the U.S. Nuclear Regulatory Commission (NRC or Commission) requesting approval of the direct transfer of Renewed Facility Operating License No. DPR-20 from Palisades to ENP. The application is in connection with the sale of Consumer's ownership interest (100 percent) in Palisades to ENP, and the related transfer of operating authority for the facility from NMC to ENO.Supplemental information was provided by letters dated December 15, 2006, and March 1 and April 4, 2007 (hereinafter, the August 31 application and December 15, 2006, andMarch 1 and April 4, 2007, supplemental information will be referred to collectively as the "application"). The applicants also requested approval of a conforming license amendment that would replace references to Consumers and NMC in the license with references to ENP and ENO to reflect the transfer of ownership, and would revise paragraph 1.B in the license to be consistent with paragraph 2 regarding the disposition of the Provisional Operating License. No physical changes to the facilities or operational changes were proposed in the application. After completion of the proposed transfer, ENP and ENO would be the owner and operator, respectfully, of the facility.Approval of the transfer of the facility operating license and conforming licenseamendment is requested by the applicants pursuant to Sections 50.80 and 50.90 of Title 10 of the Code of Federal Regulations (10 CFR). Notice of the request for approval and opportunityfor a hearing were published in the Federal Register on November 16, 2006 (71 FR 66805). Nocomments were received. A petition for leave to intervene pursuant to 10 CFR 2.309 was received on December 5, 2006, from the Van Buren County, Covert Township, Covert Public Schools, Van Buren County Intermediate School District, Van Buren County District Library, Lake Michigan College, and South Haven Hospitals. A second petition for leave to intervene pursuant to 10 CFR 2.309 was received on December 6, 2006, from Michigan Environmental Council and Public Interest Research Group. The petitions are under consideration by the Commission.Pursuant to 10 CFR 50.80, no license, or any right thereunder, shall be transferred,directly or indirectly, through transfer of control of the license, unless the Commission shall give its consent in writing. Upon review of the information in the application and other information before the Commission, and relying upon the representations and agreements contained in the application, the NRC staff has determined that ENP is qualified to hold the ownership interests in the facility previously held by Consumers, and ENO is qualified to hold the operating authorityunder the license, and that the transfer of ownership interests and the operating interests in the facility to ENP and ENO, respectively, described in the application is otherwise consistent withapplicable provisions of law, regulations, and orders issued by the Commission, subject to the conditions set forth below. The NRC staff has further found that the application for the proposed license amendment complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I; the facility will operate in conformity with the applications, the provisions of the Act, and the rules and regulations of the Commission; there is reasonable assurance that the activities authorized by the proposed license amendment can be conducted without endangering the health and safety of the public and that such activities will be conducted in compliance with the Commission's regulations; the issuance of the proposed license amendment will not be inimical to the common defense and security or to the health and safety of the public; and the issuance of the proposed amendment will be in accordance with 10 CFR Part 51 of the Commission's regulations and all applicable requirements have been satisfied.The findings set forth above are supported by NRC safety evaluations datedApril 6, 2007.
III.Accordingly, pursuant to Sections 161b, 161i, and 184 of the Act, 42 U.S.C. Sections 2201(b), 2201(i), and 2234; and 10 CFR 50.80, IT IS HEREBY ORDERED that the transfer of the license, as described herein, to ENP and ENO is approved, subject to the following condition:Prior to completion of the transfer of the license, Entergy shall provide the Director of the Office of Nuclear Reactor Regulation satisfactory documentary evidence that it has obtained the appropriate amount of insurance required of alicensee under 10 CFR Part 140 of the Commission's regulations.
IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), the licenseamendment that makes changes, as indicated in Enclosure 2 to the cover letter forwarding this Order, to conform the license to reflect the subject direct license transfer is approved. The amendment shall be issued and made effective at the time the proposed direct license transfer is completed.IT IS FURTHER ORDERED that ENP and ENO shall inform the Director of the Office ofNuclear Reactor Regulation in writing of the date of closing of the transfer of the Consumers and NMC interests in Palisades, at least 1 business day prior to closing. Should the transfer of the license not be completed within one year of this Order's date of issue, this Order shall become null and void, provided; however, that upon written application and for good cause shown, such date may be extended by order. This Order is effective upon issuance.
For further details with respect to this Order, see the initial application dated August 31, 2006, as supplemented by letters dated December 15, 2006, and March 1 and April 4, 2007, and the non-proprietary safety evaluation dated April 6, 2007, which are available for public inspection at the Commission's Public Document Room (PDR), located at One White Flint North, 11555 Rockville Pike, Room O-1 F21 (First Floor), Rockville, Maryland and accessible electronically from the Agencywide Documents Access and Management System (ADAMS) Public Electronic Reading Room on the Internet at the NRC Web site, http://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS or who encounter problems in accessing the documents located in ADAMS, shouldcontact the NRC PDR Reference staff by telephone at 1-800-397-4209, 301-415-4737, or by e-mail at pdr@nrc.gov. Dated at Rockville, Maryland this 6th day of April 2007. FOR THE NUCLEAR REGULATORY COMMISSION/RA/J. E. Dyer, DirectorOffice of Nuclear Reactor Regulation CONSUMERS ENERGY COMPANYNUCLEAR MANAGEMENT COMPANY, LLCDOCKET NO. 50-255PALISADES NUCLEAR PLANTAMENDMENT TO FACILITY OPERATING LICENSEAmendment No. Renewed License No. DPR-201.The U.S. Nuclear Regulatory Commission (the Commission) has found that:A.The application for amendment by Consumers Energy Company and NuclearManagement Company, LLC (the licensees), dated August 31, 2006, as supplemented on December 15, 2006, and March 1 and April 4, 2007, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act), and the Commission's rules and regulations set forth in 10 CFR Chapter I;B.The facility will operate in conformity with the application, the provisions of theAct, and the rules and regulations of the Commission;C.There is reasonable assurance (i) that the activities authorized by thisamendment can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations;D.The issuance of this amendment will not be inimical to the common defense andsecurity or to the health and safety of the public; andE.The issuance of this amendment is in accordance with 10 CFR Part 51 of theCommission's regulations and all applicable requirements have been satisfied.2.Accordingly, the renewed license is amended as indicated in the attachment to thislicense amendment. 3.The license amendment is effective as of its date of issuance and shall be implementedwithin 30 days from the date of issuance.FOR THE NUCLEAR REGULATORY COMMISSIONJ. E. Dyer, DirectorOffice of Nuclear Reactor Regulation
Attachment:
Changes to Facility Operating License and Facility Technical SpecificationsDate of Issuance:
ATTACHMENT TO LICENSE AMENDMENT NO. RENEWED FACILITY OPERATING LICENSE NO. DPR-20DOCKET NO. 50-255Replace the following pages of the Renewed Facility Operating License No. DPR-20 with theattached revised pages. The changed areas are identified by a marginal line.RemoveInsertLicense Page 1License Page 1License Page 2License Page 2 License Page 3License Page 3 License Page 4License Page 4 License Page 5License Page 5 License Page 6License Page 6 License Page 7License Page 7Replace the following pages of the Appendix A, Technical Specifications with the attachedrevised pages. The revised pages are identified by amendment number and contain marginal lines indicating the areas of change. RemoveInsert4.0-14.0-1 ENTERGY NUCLEAR PALISADES, LLCENTERGY NUCLEAR OPERATIONS, INC.DOCKET NO. 50-255PALISADES NUCLEAR PLANTRENEWED FACILITY OPERATING LICENSERenewed License No. DPR-201.The Nuclear Regulatory Commission (NRC or the Commission) having previously madethe findings set forth in Operating License No. DPR-20, dated February 21, 1991, has now found that:A.The application for Renewed Operating License No. DRP-20 filed by Entergy NuclearPalisades, LLC (ENP) and Entergy Nuclear Operations, Inc. (ENO) complies with the standards and requirements of the Atomic Energy Act of 1954, as amended (the Act),
and the Commission's rules and regulations set forth in 10 CFR Chapter I, and all required notifications to other agencies or bodies have been duly made;B.Construction of the Palisades Plant (the facility) has been completed in conformity withProvisional Construction Permit No. CPPR-25 and the application, as amended, the provisions of the Act, and the regulations of the Commission, and has been operating under facility operating license since February 21, 1991;C.Actions have been identified and have been or will be taken with respect to: (1) managing the effects of aging on the functionality of structures and components that have been identified to require review under 10 CFR 54.21(a)(1) during the period of extended operation, and (2) time-limited aging analyses that have been identified to require review under 10 CFR 54.21(c), such that there is reasonable assurance that the activities authorized by this renewed operating license will continue to be conducted in accordance with the current licensing basis, as defined in 10 CFR 54.3 for the facility, and that any changes made to the facility's current licensing basis in order to comply with 10 CFR 54.29(a) are in accordance with the Act and the Commission's regulations;Amendment No. D.The facility will operate in conformity with the application, the provisions of the Act, andthe regulations of the Commission;E.There is reasonable assurance: (i) that the activities authorized by this renewedoperating license can be conducted without endangering the health and safety of the public, and (ii) that such activities will be conducted in compliance with the Commission's regulations set forth in 10 CFR Chapter I;F.ENP is financially qualified and ENO is financially and technically qualified to engagein the activities authorized by this renewed operating license in accordance with the Commission's regulations set forth in 10 CFR Chapter I;G.ENP and ENO have satisfied the applicable provisions of 10 CFR Part 140, "FinancialProtection Requirements and Indemnity Agreements" of the Commission's regulations;H.The issuance of this renewed operating license will not be inimical to the commondefense and security or to the health and safety of the public;I.After weighing the environmental, economic, technical, and other benefits of thefacility against environmental and other costs and considering available alternatives, the issuance of this renewed Facility Operating License No. DPR-20, subject to the conditions for protection of the environment set forth herein, is in accordance with 10 CFR Part 51 (formerly Appendix D to Part 50), of the Commission's regulations and all applicable requirements have been satisfied; andJ.The receipt, possession, and use of source, byproduct, and special nuclear materialas authorized by this renewed operating license will be in accordance with 10 CFR Parts 30, 40, and 70.2.Operating License No. DPR-20, dated February 21, 1991, as amended, was superseded inits entirety by Renewed Facility Operating License No. DPR-20 (previously issued to Consumers Energy Company), is hereby issued to ENP and ENO to read as follows:A.This renewed license applies to the Palisades Plant, a pressurized light watermoderated and cooled reactor and electrical generating equipment (the facility). The facility is located in Van Buren County, Michigan, and is described in the Palisades Plant Updated Final Safety Analysis Report, as supplemented and amended, and in the Palisades Plant Environmental Report, as supplemented and amended.B.Subject to the conditions and requirements incorporated herein, the Commissionhereby licenses:Renewed License No. DPR-20Amendment No. (1)Pursuant to Section 104b of the Act, as amended, and 10 CFR Part 50,"Licensing of Production and Utilization Facilities," (a) ENP to possess and use, and (b) ENO to possess, use and operate, the facility as a utilization facility at the designated location in Van Buren County, Michigan, in accordance with the procedures and limitation set forth in this license;(2)ENO, pursuant to the Act and 10 CFR Parts 40 and 70, to receive, possess, anduse source and special nuclear material as reactor fuel, in accordance with the limitations for storage and amounts required for reactor operation, as described in the Updated Final Safety Analysis Report, as supplemented and amended;(3)ENO, pursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive, possess,and use byproduct, source, and special nuclear material as sealed sources for reactor startup, reactor instrumentation, radiation monitoring equipment calibration, and fission detectors in amounts as required;(4)ENO, pursuant to the Act and 10 CFR Parts 30, 40, and 70, to receive, possess,and use in amounts as required any byproduct, source, or special nuclear material for sample analysis or instrument calibration, or associated with radioactive apparatus or components; and(5)ENO, pursuant to the Act and 10 CFR Parts 30, 40, and 70, to possess, but notseparate, such byproduct and special nuclear materials as may be produced by the operations of the facility.C.This renewed operating license shall be deemed to contain and is subject to theconditions specified in the Commission's regulations in 10 CFR Chapter I and is subject to all applicable provisions of the Act; to the rules, regulations, and orders of the Commission now or hereafter in effect; and is subject to the additional conditions specified or incorporated below:(1)ENO is authorized to operate the facility at steady-state reactor core powerlevels not in excess of 2565.4 Megawatts thermal (100 percent rated power) in accordance with the conditions specified herein.(2)The Technical Specifications contained in Appendix A, as revised throughAmendment No. , and the Environmental Protection Plan contained in Appendix B are hereby incorporated in the license. ENO shall operate the facility in accordance with the Technical Specifications and the Environmental Protection Plan.(3)ENO shall implement and maintain in effect all provisions of the approved fireprotection program as described in the Final Safety Analysis Report for the facility and as approved in the SERs dated 09/01/78, 03/19/80, 02/10/81, 05/26/83, 07/12/85, 01/29/86, 12/03/87, and 05/19/89 and subject to the following provisions:Renewed License No. DPR-20Amendment No. a.ENO may make changes to the approved fire protection program withoutprior approval of the Commission only if those changes would not adversely affect the ability to achieve and maintain safe shutdown in the event of a fire.b.ENO may alter specific features of the approved fire protection programprovided:-Such changes do not result in failure to complete the fire protectionprogram as approved by the Commission. ENO shall maintain in auditable form, a current record of all such changes, including an analysis of the effects of the change on the fire protection program and shall make such records available to the Commission Inspectors upon request. All changes to the approved program shall be reported along with the FSAR revision as required by 10 CFR 50.71(e); and-Temporary changes to specific fire protection features which may benecessary to accomplish maintenance or modifications are acceptable provided interim compensatory measures are implemented.(4)Upon implementation of Amendment No. 189, the schedule for performance ofnew or revised surveillance requirements (SRs) shall be as follows:-For SRs that are new in this amendment, the first performance is due atthe end of the first surveillance interval that begins on the date of implementation of this amendment.-For SRs that existed prior to this amendment whose intervals ofperformance are being reduced, the first reduced surveillance interval begins upon completion of the first surveillance performed after implementation of this amendment.-For SRs that existed prior to this amendment that have modifiedacceptance criteria, the first performance is due at the end of the first surveillance interval that began on the date the surveillance was last performed prior to the implementation of this amendment.-For SRs that existed prior to this amendment whose intervals ofperformance are being extended, the first extended surveillance interval begins upon completion of the last surveillance performed prior to the implementation of this amendment.(5)In lieu of the specified frequencies, ENO may complete the surveillancerequirements (SRs) noted in Table 2.C.(5) on Page 5 during the next refueling outage, but no later than April 30, 2003.Renewed License No. DPR-20Amendment No. TABLE 2.C.(5)Surveillance RequirementDescriptionSR 3.3.3.3(for Table 3.3.3-1, Item 3.a)Channel Calibration of Safety Injection andRefueling Water Tank Low Level.SR 3.3.4.3(for Table 3.3.4-1, Item 1)Channel Functional Test of Safety InjectionSignal (SIS) function.SR 3.3.4.3(for Table 3.3.4-1, Item 3)Channel Functional Test of RecirculationActuation Signal function.SR 3.3.5.1Channel Functional Test of Diesel GeneratorUndervoltage Start logic.SR 3.5.2.8 (High Pressure Safety Injectionto Hot Leg 1 Valves MO-3082 and MO-3083 only)Throttle valve position stop is in correctposition.SR 3.7.8.2 (Non-Critical Service WaterHeader Isolation Valve CV-1359 only)Automatic valve actuates to the correctposition on actual or simulated actuation signal.SR 3.8.1.7Emergency AC power performs as requiredon actual or simulated loss-of-offsite power (LOOP) signal.SR 3.8.1.9Emergency AC power performs as requiredon actual or simulated restoration of offsite power.SR 3.8.1.10Load sequencing for each automatic loadsequencer.SR 3.8.1.11Emergency AC power performs as requiredon actual or simulated LOOP signal in conjunction with actual or simulated SIS.Renewed License No. DPR-20Amendment No. D.The facility has been granted certain exemptions from the requirements of Section III,G of Appendix R to 10 CFR Part 50, "Fire Protection Program for Nuclear PowerFacilities Operating Prior to January 1, 1979." This section relates to fire protectionfeatures for ensuring the systems and associated circuits used to achieve and maintain safe shutdown are free of fire damage. These exemptions were granted in letters dated February 8, 1983, July 12, 1985, and July 23, 1985.In addition, the facility has been granted certain exemptions from Appendix J to10 CFR Part 50, "Primary Reactor Containment Leakage Testing for Water Cooled Power Reactors." This section contains leakage test requirements, schedules and acceptance criteria for tests of the leak-tight integrity of the primary reactor containment and systems and components which penetrate the containment. These exemptions were granted in a letter dated December 6, 1989.These exemptions granted pursuant to 10 CFR 50.12, are authorized by law, will notpresent an undue risk to the public health and safety, and are consistent with the common defense and security. With these exemptions, the facility will operate, to the extent authorized herein, in conformity with the application, as amended, the provisions of the Act, and the rules and regulations of the Commission.E.ENO shall fully implement and maintain in effect all provisions of the Commission-approved physical security, training and qualification, and safeguards contingency plans including amendments made pursuant to provisions of the Miscellaneous Amendments and Search Requirements revisions to 10 CFR 73.55 (51 FR 27817 and 27822) and to the authority of 10 CFR 50.90 and 10 CFR 50.54(p).
The combined set of plans, which contains Safeguards Information protected under 10 CFR 73.21, is entitled: "Nuclear Management Company Palisades Nuclear Plant Physical Security Plan, Revision 2," submitted by letter dated May 10, 2006.F.The licensee shall report any violations of Section 2.C(1) of this license within 24 hours1 days <br />0.143 weeks <br />0.0329 months <br /> to the NRC Operations Center via the Emergency Notification System with written follow-up within 60 days in accordance with 10 CFR 50.73(b), (c), and (e).G.ENP and ENO shall have and maintain financial protection of such type and in suchamounts as the Commission shall require in accordance with Section 170 of the Atomic Energy Act of 1954, as amended, to cover public liability claims.Renewed License No. DPR-20Revised by letter dated April 2, 2007Amendment No. H.The Updated Safety Analysis Report supplement, as revised, submitted pursuant to 10CFR 54.21(d), shall be included in the next scheduled update to the Updated Safety Analysis Report required by 10 CFR 50.71(e)(4) following the issuance of this renewed operating license. Until that update is complete, ENO may make changes to the programs and activities described in the supplement without prior Commission approval, provided that ENO evaluates such changes pursuant to the criteria set forth in 10 CFR 50.59 and otherwise complies with the requirements in that section.I.The Updated Safety Analysis Report supplement, as revised, describes certain futureactivities to be completed prior to the period of extended operation. ENO shall complete these activities no later than March 24, 2011, and shall notify the NRC in writing when implementation of these activities is complete and can be verified by NRC inspection. J.All capsules in the reactor vessel that are removed and tested must meet the testprocedures and reporting requirements of American Society for Testing and Materials (ASTM) E 185-82 to the extent practicable for the configuration of the specimens in the capsule. Any changes to the capsule withdrawal schedule, including spare capsules, must be approved by the NRC prior to implementation. All capsules placed in storage must be maintained for future insertion. Any changes to storage requirements must be approved by the NRC, as required by 10 CFR Part 50, Appendix H.K.This license is effective as of the date of issuance and shall expire at midnight onMarch 24, 2031.FOR THE NUCLEAR REGULATORY COMMISSION/RA/J. E. Dyer, DirectorOffice of Nuclear Reactor Regulation Attachments:1.Appendix A - TechnicalSpecifications2.Appendix B - EnvironmentalProtection PlanDate of Issuance: January 17, 2007Renewed License No. DPR-20Amendment No.
SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATIONRELATED TO DIRECT TRANSFER OF RENEWED OPERATING LICENSETO ENTERGY NUCLEAR PALISADES, LLCAND ENTERGY NUCLEAR OPERATIONS, INC.PALISADES NUCLEAR PLANTDOCKET NO. 50-25
51.0INTRODUCTION
By application dated August 31, 2006, as supplemented by letters dated December 15, 2006,and March 1 and April 4, 2007 (hereinafter, the August 31, 2006, application and the December 15, 2006, and March 1 and April 4, 2007, supplements will be referred to collectively as the "application"), Consumers Energy Company (Consumers), Nuclear Management Company, LLC (NMC), Entergy Nuclear Palisades, LLC (ENP), and Entergy Nuclear Operations, Inc. (ENO), requested approval by the Nuclear Regulatory Commission (NRC),
pursuant to Section 50.80 of Title 10 of the Code of Federal Regulations (CFR), to the directtransfer of Renewed Facility Operating License No. DPR-20 for Palisades Nuclear Plant (Palisades) from Consumers, owner, and NMC, operator, to ENP as owner, and ENO as operator. The proposed direct transfer will be the result of the sale of Palisades as indicated by the execution of the Asset Sales Agreement (ASA) signed by Consumers and ENP on July 11, 2006. Upon closing of the sale, ownership, control and operation of Palisades would change from Consumers and NMC to ENP and ENO. Closing of the sale cannot occur until all regulatory approvals are received. The July 11, 2006 ASA also concerns the sale of the license for Big Rock Point Facility (DocketNo. 50-155) and Big Rock Point Independent Spent Fuel Storage Installation (ISFSI) (Docket No.72-043), from Consumers to ENP and ENO. An application for approval of that direct transfer was filed on October 31, 2006. While the license transfer of Big Rock Point Facility/Big Rock Point ISFSI are being executed by a separate Order, certain analyses in this safety evaluation (SE) took into account the transfer of all of the licenses: Palisades, Big Rock Point Facility/Big Rock Point ISFSI.The application also requested a conforming amendment to reflect the transfer of ownershipand operating authority for Palisades to ENP and ENO. References to Consumers and NMC would be deleted from the license, other than reference to past ownership. The supplemental information to the application did not expand the scope of the application as originally notified in the Federal Register
.NOTE: OMITTED TEXT INDICATED BY BRACKETS ON PAGE 4 IS PROPRIETARYINFORMATION.Enclosure 3
2.0BACKGROUND
Palisades is a 2,565 megawatt thermal pressurized-water reactor located near South Haven,Michigan. Palisades was issued its original provisional operating license on March 24, 1971, and, therefore, the operating license was to expire on March 31, 2011. On March 22, 2005, the licensee filed An Application for License Renewal. The Application for License Renewal wasapproved by the NRC on January 17, 2007, and the renewed operating license will now expire on March 24, 2031.Upon consummation of the sale pursuant to the ASA (and subject to NRC approval), ENPwould assume title to Palisades. ENO would operate and maintain Palisades as agent for ENP, pursuant to the Operating Agreement For Palisades Nuclear Power Station, between ENP and ENO. ENP, a Delaware Limited Liability Company, is a newly formed, indirect wholly-owned subsidiary of Entergy Corporation (Entergy), and a direct wholly-owned subsidiary of Entergy Nuclear Midwest Investment Company, LLC. ENP's principal place of business will be Covert, Michigan. ENO, a Delaware Corporation, is an indirect wholly-owned subsidiary of Entergy, and a direct wholly-owned subsidiary of Entergy Nuclear Holding #2. ENO's principal place of business is located in Jackson, Mississippi.Consumers has entered into a power purchase agreement with ENP under which Consumers isobligated to purchase 100 percent of Palisades total energy and capacity from ENP for 15 years from the closing date of the sale of Palisades. According to the application, at the closing, Consumers will transfer assets of the qualified Decommission Trust Fund to a trust fund established by ENP in an amount that will meet the NRC funding requirements, but no less than $250 million.According to the application, the principal officers of ENP and the principal officers anddirectors of ENO are all American citizens.
3.0REGULATORY EVALUATION
The applicants' request for the approval of the direct transfer of the license for Palisadesdiscussed in this SE, is made pursuant to 10 CFR 50.80. Section 50.80(a) states "No license for a production utilization facility, or any right thereunder, shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission shall give its consent in writing."In addition, the requirements of 10 CFR 50.80(b) and (c) apply. Section 50.80(b) states that anapplicant for a license transfer shall include as much information described in 10 CFR 50.33 and 10 CFR 50.34 of this part "with respect to the identity and technical and financial qualifications of the proposed transferee as would be required by those sections if the applicant were for an initial license. . . " Section 50.80(c) states that "the Commission will approve the application for the transfer of a license, if the Commission determines: (1) That the proposed transferee is qualified to be the holder of the license; and (2) That transfer of the license is otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto." 4.0FINANCIAL QUALIFICATIONS4.1QualificationsSection 50.33(f) of 10 CFR states "Except for an electric utility applicant for a license to operatea utilization facility of the type described in 10 CFR 50.21(b) or 10 CFR 50.22, information sufficient to demonstrate to the Commission the financial qualifications of the applicant to carry out, in accordance with the regulations of this chapter, the activities for which the permit or license is sought."Section 50.2 of 10 CFR states that an electric utility is "any entity that generates or distributeselectricity and which recovers the cost of this electricity, either directly or indirectly, through rates established by the entity itself or by a separate regulatory authority."The NRC staff finds that neither ENP nor ENO qualify as an "electric utility," as defined in10 CFR 50.2, because most of its electricity prices, used to recover costs, will not be set by a separate regulatory authority or by the entity itself. Thus, the NRC staff has determined that ENP must meet the financial qualifications requirements for a non-electric utility pursuant to 10 CFR 50.33(f). Because ENP is not an electric utility and is thus subject to a full financialqualification review, it must provide the following information; pursuant to 10 CFR 50.33(f)(2).Information that demonstrates that ENP possesses or has reasonableassurance of obtaining the necessary funds to cover estimated operating costs for the period of the license and shall submit estimates for the total annual operating costs for the first 5 years of facility operations and indicate the source(s) of funds to cover these costs.In addition, because ENP is a newly formed entity, it must provide the following informationpursuant to 10 CFR 50.33(f)(3) that shows:a)the legal and financial relationship ENP has or proposes to have with itsstockholders or owners,b)its financial ability to meet any contractual obligations to any entity which theyhave incurred or propose to incur, andc)any other information considered necessary by the NRC staff to enable it todetermine the applicant's financial qualification.This information will demonstrate how ENP meets the requirements of 10 CFR 50.33(f)and50.80(b). Also, 10 CFR 50.33(k)(1) requires that ENP provide information described in 10 CFR 50.75 indicating reasonable assurance that funds will be available to decommission the facility.The NRC staff evaluated the financial qualifications of ENP consistent with the guidance inNUREG-1577, Rev 1. The NRC staff reviewed the financial projections for reasonableness of estimated operating costs, financial projections and underlying assumptions, and sensitivity of revenue projection to plant capacity. The NRC staff also evaluated the financial condition of ENP's parent organization as it relates to its obligations to ENP. In accordance with 10 CFR 50.33(f)(2), ENP provided in the application, the projected incomestatements for the full 5 year period from 2007 to 2011, and included year 2012. Most of Palisades' revenue will be generated through its power contract with Consumers. Consumers has entered into a 15 year power contract purchase agreement with ENP, in which it commits to purchase all of the output from Palisades. However, starting in fiscal year (FY) 2011, approximately 4 percent of revenue is expected to come from market power sales. The NRC staff notes that in addition to the revenue from power sales and market power sales included below, ENP will have access to an established line of credit of $25 million from Entergy or another affiliate company.Entergy Nuclear Palisades LLCSummary ofPROJECTED INCOME STATEMENT (In $ millions
)FY2007*FY2008 FY2009 FY2010 FY2011 FY2012TOTAL REVENUE:$[ ]$[ ]$[ ]$[ ]$[ ]$[ ]
Total Operating Expense:$[ ]$[ ]$[ ]$[ ]$[ ]$[ ]
Operating Income:$[ ]$[ ]$[ ]$[ ]$[ ]$[ ]
Other Income/Expense Tax$[ ]$[ ]$[ ]$[ ]$[ ] $[ ]
NET INCOME AFTER TAX$[ ]$[ ]$[ ]$[ ]$[ ]$[ ]* FY2007 assumes a March 2007 closing date.The NRC staff tested the sensitivity of the financial information in the above Projected IncomeStatement by analyzing two scenarios that change the assumptions for revenue. The NRC staff notes that if prices per megawatt hour were to drop by an average of 10.0 percent, the average net effect on the 6 years of Net Income is a drop from the projected average of $[
] to a possible $[ ]. Similarly, if an average historical capacity factor of 88.0 percent is assumed instead of the projected average capacity factor of [ ] percent, then the average net effect on the 6 years of Net Income is a drop to a possible $[ ]. The NRC staff considers that the impact on Net Income under each of the two scenarios is sufficiently reasonable as to provide assurance of adequate funding to recover costs of operations.ENP is a newly formed entity, and either through a parent or affiliate company, will provide thefunds to purchase Palisades. Entergy, the parent company, has unconditionally guaranteed payment of the purchase price under the Asset Sales Agreement. ENO was formed in February 2000, and employs approximately 3300 people. At the closing of the purchase, Palisades and the Big Rock ISFSI will be the only assets on ENP's balance sheet. Total Operating Expense, listed above, also contains an average annual expense of approximately
$[ ] towards maintaining the Big Rock ISFSI. The Big Rock ISFSI SE contains a separate analysis under a separate Order. As required by 10 CFR 50.33(f)(3), the application states that ENP and ENO are indirect,wholly-owned subsidiaries of Entergy, which is headquartered in New Orleans, Louisiana.
Entergy is a U.S. based global energy company composed of power production facilities, distribution operations and related diversified services. Entergy owns, manages or invests in power plants that generate nearly 30,000 megawatts of electricity. Through its various subsidiaries (both regulated and non-regulated), Entergy owns and operates 10 nuclear power plants at 8 sites. These are:Arkansas Nuclear One, Units 1 & 2Grand Gulf Nuclear Station River Bend Station Waterford 3 Nuclear Power Station Pilgrim Nuclear Power Station Indian Point Energy Center Generating Units 2 & 3 James A. FitzPatrick Nuclear Power StationVermont YankeeThe NRC staff notes that ENO also provides management support to the Cooper NuclearStation. As of June 30, 2006, Entergy had total assets of $30.6 billion.Based on the information in the application for the transfer, the other documents cited above,and the evaluation above, the NRC staff finds that ENP's Projected Income Statement shows that the anticipated revenues from sales of energy and capacity from Palisades provide reasonable assurance of an adequate source of funds to meet Palisades' anticipated expenses, as well as the yearly operating expense for the Big Rock ISFSI, during the required five year period covered by the six year projections. The NRC staff finds that no further financial qualifications analysis or review is necessary.Accordingly, the NRC staff has determined that ENP has provided reasonable assurance ofadequate financial qualifications for a non-electric utility pursuant to 10 CFR 50.33(f).4.2Decommissioning Funding AssuranceThe NRC has determined that the requirements to provide reasonable assurance ofdecommissioning funding are necessary to ensure the adequate protection of public health and safety. The regulation at 10 CFR 50.33(k) requires that an applicant for an operating license for a utilization facility contain information to demonstrate how reasonable assurance will be provided and that funds will be available to decommission the facility.Consumers maintains Qualified and Non-qualified Decommissioning Trust Funds for thedecommissioning of Palisades. At the closing of sale, Consumers will transfer assets of the Qualified Funds to a trust established by ENP. As of the date of this application, Consumers states that the value of the Qualified Decommissioning Trust is approximately $366 million. At the closing Consumers will either transfer the entire balance of the Qualified Fund, or a lesser amount if certain Internal Revenue Service (IRS) private letter rulings are obtained, prior to closing. Consumers estimates that the amount transferred to ENO will, in no event, be less than $250 million.Consumers further estimates that the amount needed to meet the NRC minimum fundingrequirement would be $201 million. If their estimate is correct, then the $250 million to be contributed to the Decommissioning Trust to be held by ENP would exceed the NRC minimumfunding requirements in 10 CFR 50.75. However, the staff has performed an independent calculation and estimates the Minimum Decommissioning Funding amount is $218 million.
Consumers has stated that, should the credited value of the funds transferred at closing not meet the NRC minimum funding requirement, ENP will provide the additional amount through a parent company guarantee that will meet the requirements of 10 CFR 50.75.Upon closing, the decommissioning trust funds will be held in a Decommissioning Trustestablished and maintained by ENP. The funds will be segregated from ENP's other assets and will be outside of ENP administrative control. The trust will provide:1.)No funds may be distributed from the trust transfers, other than forordinary administrative expenses, unless the Trustee first gives 30 business days prior written notice to the Director, Office of Nuclear Reactor Regulation, with no NRC objection. 10 CFR 50.75(h)(1)(iv)2.)The funds will be invested in accordance with the "prudent investor"standard as specified in 18 CFR 35.32(a)(3) of the Federal Energy Regulatory Commission's regulations. 10 CFR 50.75(h)(1)(i)3.)No material amendments will be made to the trust agreement without 30business days prior written request to the Director, Office of Nuclear Reactor Regulation, with no NRC objection. 10 CFR 50.75(h)(1)(iii) 4.)Investments in the securities or other obligations of Entergy, ENO, orENP, or their affiliates, successors or assigns, shall be strictly prohibited.
10 CFR 50.75(h)(1)(i)(A)5.)Except for investments tied to market indexes or other non-nuclear sectormutual funds, investments of the decommissioning funds in any entity owning one or more nuclear power plants is prohibited.
10 CFR 50.75(h)(1)(i)(A)The staff notes that the foregoing trust provisions are regulatory requirements that must becomplied with, notwithstanding ENP's commitments. The NRC does not need to recognize the distinction between Qualified and Non-qualified decommissioning trust funds, because this distinction is regulated by the IRS. However, NRC regulations require that a minimum decommissioning funding amount be maintained as specified under 10 CFR 50.75. The staff's independent calculation takes into consideration the license renewal for Palisadesthat was granted prior to the completion of this direct transfer, thus adding an additional twenty years of accruing interest. Thus, the minimum decommissioning funding amount required by 10 CFR 50.75 that ENP shall be required to have in its decommissioning trust is $218 million.
Since the amount of the decommissioning trust funds to be transferred will be no less than
$250 million, the NRC staff finds that there is reasonable assurance that funds will be available for decommissioning pursuant to 10 CFR 50.75. 4.3Antitrust Review and Existing Antitrust ConditionsThe Atomic Energy Act of 1954 as amended (AEA) does not require or authorize antitrustreviews of post-operating license transfer applications. Kansas Gas and Electric Co., et al.(Wolf Creek Generating Station, Unit 1), CLI-99-19, 49 NRC 441 (1999). The application here postdates the issuance of the operating license for the unit under consideration, and therefore no antitrust review is required or authorized. The NRC staff notes that there are no existing antitrust license conditions in the subject license. Accordingly, there are no antitrust-related issues to resolve with respect to proposed conforming license amendments.4.4Foreign Ownership, Control, or DominationSections 103d and 104d of the AEA prohibit the NRC from issuing a license for a nuclear powerplant to "any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government."
The NRC's regulation, 10 CFR 50.38, contains language to implement this prohibition. As stated in the application, ENP and ENO are not directly or indirectly owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government. In seeking to become the licensed owner and operator of Palisades, ENP and ENO are not acting as agents or representatives of another entity.The application states that all of the directors of Entergy, ENO, and ENP are United Statescitizens and all the principal officers of ENP are United States citizens.In light of the above, the NRC staff does not know or have reason to believe that Entergy, ENO,and ENP is owned, controlled or dominated by an alien, a foreign corporation, or a foreign government.4.5Nuclear Insurance and IndemnityThe provisions of the Price-Anderson Act (Section 170 of the AEA) and the Commission'sregulations at 10 CFR Part 140 require that the current indemnity agreement be modified to reflect Entergy as a new parent company licensee of Palisades.In accordance with the Price-Anderson Act, Entergy will be required to provide primaryinsurance and participate in the secondary retrospective insurance pool. It will also be required to maintain property insurance as specified in 10 CFR 50.54(w). Information provided in the application demonstrates that Entergy will be able to satisfy applicable insurance requirements of the NRC and the Price-Anderson Act.Consistent with NRC practice, the NRC staff will require Entergy to provide satisfactorydocumentary evidence that it has obtained the appropriate amount of insurance required of a licensee under 10 CFR Part 140 of the Commission's regulations, prior to the issuance of the amended license. Because the issuance of the amended licenses are directly tied to completion of the proposed direct license transfer, the order approving the transfer will be conditioned as follows: Prior to completion of the transfer of the license, Entergy shallprovide the Director of the Office of Nuclear Reactor Regulation satisfactory documentary evidence that it has obtained the appropriate amount of insurance required of a licensee under10 CFR Part 140 of the Commission's regulations.4.6IntervenersDuring the preparation of this SE, NRC staff became aware of two petitions requesting leave tointervene filed with the Commission. The first petition is from Van Buren County, Covert Township, Covert Public Schools, Van Buren County Intermediate School District, Van Buren County District Library, Lake Michigan College, and South Haven Hospitals. The second petition is from Michigan Environmental Council and Public Interest Research Group. The staff has made a review of these petitions as they relate to the financial qualifications of ENP and ENO. The NRC staff has found no information that would cause it to change the conclusions contained herein.5.0TECHNICAL QUALIFICATIONSThe purpose for the technical evaluation is to ensure that the proposed corporate managementis involved with, informed of, and dedicated to the safe operation of the plant; that sufficient, qualified technical resources will be provided to support safe plant operation and maintenance; and to evaluate proposed changes to the operating organization that may occur as a result of the license transfer.The NRC staff used the following regulations and guidance during its evaluation of the technicalqualification: 10 CFR 50.40(b), "Common Standards;" 10 CFR 50.80, "Transfer of Licenses;"
and NUREG-0800, Standard Review Plan (SRP), Section 13.1.1, "Management and Technical Support Organization," and Sections 13.1.2 - 13.1.3, "Operating Organizations."5.1Management and Technical Support OrganizationThe NRC staff reviewed the application to determine the acceptability of the proposed corporatemanagement and technical support organization. The NRC staff evaluated the application using the applicable acceptance criteria contained in SRP Section 13.1.1, "Management and Technical Support Organization."In the application, the applicants stated, "The existing plant staff is technically qualified withinexisting plan procedures and applicable regulations, and will remain qualified after the transfer."
In addition, the applicants stated, "All Palisades employees employed immediately prior to the closing would be offered employment with ENO at the Palisades Facility. Thus, no changes to the technical qualifications of the operating organization are expected."The applicants further stated, "The organizational structure provides for the integratedmanagement of activities that support the operation and maintenance of Palisades. Clear management control, clear lines of authority and effective communications exist between the organizational units involved in management, operations, and technical support for operation of Palisades."Based on the application, the applicants have shown and described the organizations formanaging and providing technical support to the Palisades staff that will be equivalent to the current qualifications of the Consumers management and technical support organization, regarding which there are no deficiencies of which the NRC staff is aware. Accordingly, the NRC staff concludes that the proposed ENP organization for managing, and its means ofproviding technical support for the continued operation of Palisades under both normal and off-normal conditions are in accordance with SRP Section 13.1.1, "Management and Technical Organization."5.2Operating OrganizationThe NRC staff reviewed the application to determine the acceptability of the ENO operatingorganization. The Palisades operating organization was determined to be acceptable during its initial licensing review (provisional operating license issued March 24, 1971). Subsequent safety-related changes to the operating organizations were evaluated with an appropriate methodology. Therefore, the existing operating organizations remain acceptable. The NRC staff's review then focused on evaluating any changes to the operating organizations proposed as a result of the transfer. The NRC staff evaluated the application using the applicable acceptance criteria contained in SRP Section 13.1.2 - 13.1.3, "Operating Organization."In its application, the applicants indicated that the only change to the organizational structurewould be, "...the senior officer at the site would report to the Senior Vice President and ChiefOperating Officer of ENO, rather than to the Chief Nuclear Officer of NMC." The applicants also stated, "The operation and performance of all Entergy nuclear plants are reviewed on a regular basis (approximately five times per year) by the Entergy Nuclear Committee." This committee reviews the performance of all Entergy's nuclear plants and provides summaries to the Entergy Board of Directors to ensure that the best practices from Entergy's other plants are implemented at all Entergy plants. The applicants also indicated that management and employees participate in Entergy peer groups that have representatives from all the Entergy Nuclear South and Entergy Nuclear Northeast plants. Peer groups meet regularly to discuss and recommend the incorporation of industry best practices throughout the Entergy system. Since the operating organizations and personnel now responsible for the operation andmaintenance of Palisades will be essentially unaffected by this transfer to ENO, the NRC staff concludes that ENO onsite organizations established to operate and maintain Palisades underboth normal and off-normal conditions are in accordance with SRP Section 13.1.2 - 13.1.3, "Operating Organization."5.3Technical ConclusionThe applicants have described the ENP corporate level management and technical supportorganization and the ENO onsite operating organization that will be responsible for the operation and maintenance of Palisades after the transfer of licensed operating authority to ENP and ENO. The NRC staff concludes that ENP will have an acceptable corporate organization, onsite organization, and adequate resources to provide technical support for the safe operation of the plants under both normal and off-normal conditions after the transfer of licensed operating authority from NMC to ENP. The application adequately addresses the relevant requirements of 10 CFR 50.40 (b) and 10 CFR 50.80.Accordingly, in light of the foregoing evaluation, the NRC staff concludes that ENP and ENO willbe technically qualified to hold the operating authority under the Palisades license. 6.0CONFORMING AMENDMENTS6.1IntroductionAs stated previously, ENP and ENO requested approval of a proposed conforming amendmentto Facility Operating License No. DPR-20 for Palisades Nuclear Plant. No physical or operating changes to the facilities are requested.6.2DiscussionThe changes to be made to the licenses are indicated in the conforming amendment inEnclosure 2 to the cover letter forwarding the NRC staff's order regarding the subject transfer.
The changes do no more than accurately reflect the approved transfer action. The amendments involve no safety questions and are administrative in nature. Accordingly, the proposed amendments are acceptable.6.3State ConsultationIn accordance with the Commission's regulations, the Michigan State official was notified of theproposed issuance of the amendment. The State official had no comment.6.4Conclusion With Respect to the Conforming AmendmentThe Commission has concluded, based on the considerations discussed above, that: (1) thereis reasonable assurance that the health and safety of the public will not be endangered by operation in the proposed manner, (2) such activities will be conducted in compliance with the Commission's regulations, and (3) the issuance of the amendment will not be inimical to the common defense and security or to the health and safety of the public.
7.0ENVIRONMENTAL CONSIDERATION
The subject application is for approval of a transfer of license issued by the NRC and approvalof conforming amendment. Accordingly, the actions involved meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(21). Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with approval of the application.
8.0CONCLUSION
In view of the foregoing, the NRC staff finds that, subject to the condition discussed herein,ENP is qualified to own, and ENO is qualified to hold the operating authority under the 10 CFR Part 50 license for Palisades, to the extent proposed in the application, and that the direct transfer of the license to ENP and ENO are otherwise consistent with applicable provisions of law, regulations, and orders issued by the Commission pursuant thereto.Principal Contributor: M. Dusaniwskyj K. Martin J. PooleDate: April 6, 2007