Federal Register / Vol. 69, No. 185 / Friday, September 24, 2004 / Notices 57367

Maryland, and from the PARS 

component of ADAMS. 

The NRC staff will hold two public 

meetings to present an overview of the 

draft plant-specific supplement to the 

GEIS and to accept public comments on 

the document. The public meetings will 

be held on November 9, 2004, at the 

Lake Charter Township Hall, 3220 

Shawnee Road, Bridgman, Michigan. 

The first session will convene at 1:30 

p.m. and will continue until 4:30 p.m., 

as necessary. The second session will 

convene at 7 p.m. with a repeat of the 

overview portions of the meeting and 

will continue until 10 p.m., as 

necessary. Both meetings will be 

transcribed and will include: (1) A 

presentation of the contents of the draft 

plant-specific supplement to the GEIS, 

and (2) the opportunity for interested 

government agencies, organizations, and 

individuals to provide comments on the 

draft report. Additionally, the NRC staff 

will host informal discussions one hour 

before the start of each meeting at the 

Lake Charter Township Hall. No 

comments on the draft supplement to 

the GEIS will be accepted during the 

informal discussions. To be considered, 

comments must be provided either at 

the transcribed public meetings or in 

writing, as discussed below. Persons 

may register to attend or present oral 

comments at the meetings by contacting 

Mr. Robert Schaaf, by telephone at 1–

800–368–5642, extension 1312, or by email at CookEIS@nrc.gov no later than 

November 3, 2004. Members of the 

public may also register to speak at the 

meeting within 15 minutes of the start 

of each session. Individual oral 

comments may be limited by the time 

available, depending on the number of 

persons who register. Members of the 

public who have not registered may also 

have an opportunity to speak, if time 

permits. If special equipment or 

accommodations are needed to attend or 

present information at the public 

meeting, Mr. Schaaf will need to be 

contacted no later than November 1, 

2004, so that the NRC staff can 

determine whether the request can be 

accommodated.

FOR FURTHER INFORMATION, CONTACT: Mr. 

Robert Schaaf, License Renewal and 

Environmental Impacts Program, 

Division of Regulatory Improvement 

Programs, U.S. Nuclear Regulatory 

Commission, Washington, DC, 20555–

0001. Mr. Schaaf may be contacted at 

the aforementioned telephone number 

or e-mail address.

Dated at Rockville, Maryland, this 8th day 

of September, 2004.

For the Nuclear Regulatory Commission. 

Pao-Tsin Kuo, 

Program Director, License Renewal and 

Environmental Impacts Program, Division of 

Regulatory Improvement Programs, Office of 

Nuclear Reactor Regulation.

[FR Doc. 04–21342 Filed 9–23–04; 8:45 am] 

BILLING CODE 7590–01–P

NUCLEAR REGULATORY 

COMMISSION 

Notice of Clarification to Steam 

Generator Tube Integrity Event 

Reporting Guideline in NUREG–1022, 

‘‘Event Reporting Guidelines 10 CFR 

50.72 and 50.73’’

AGENCY: Nuclear Regulatory 

Commission.

ACTION: Notice of clarification in 

reporting guideline for steam generator 

tube integrity event. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission has made a clarification in 

the reporting guideline for serious steam 

generator tube degradation contained 

within Revision 2 to NUREG–1022, 

‘‘Event Reporting Guidelines 10 CFR 

50.72 and 50.73.’’ The NRC will issue an 

errata to NUREG–1022, Revision 2. The 

purpose of this clarification is to ensure 

that the NRC receives timely 

notification of serious steam generator 

tube degradation.

SUPPLEMENTARY INFORMATION: On 

February 18, 2004, the NRC staff issued 

a Federal Register notice (69 FR 7661) 

that requested comments on the staff’s 

intent to issue errata to Revision 2 of 

NUREG–1022, ‘‘Event Reporting 

Guidelines 10 CFR 50.72 and 50.73.’’

The errata would indicate that steam 

generator tube degradation is considered 

serious if either of the two criteria 

specified in Section 3.2.4(A)(3) of 

NUREG–1022, Revision 2, is not 

satisfied. 

Steam generator tube degradation is 

currently characterized in Section 

3.2.4(A)(3) of NUREG–1022 as being 

seriously degraded if the tubing fails to 

meet the following two performance 

criteria: 

(A) Steam generator tubing shall 

retain structural integrity over the full 

range of normal operating conditions 

(including startup, operation in the 

power range, hot standby, and 

cooldown and all anticipated transients 

included in the design specification) 

and design basis accidents. This 

includes retaining a margin of 3.0 

against burst under normal steady state 

full power operation and a margin of 1.4 

against burst under the limiting design 

basis accident concurrent with a safe 

shutdown earthquake. 

(B) The primary to secondary accident 

induced leakage rate for the limiting 

design basis accident, other than a 

steam generator tube rupture, shall not 

exceed the leakage rate assumed in the 

accident analysis in terms of total 

leakage rate for all steam generators and 

leakage rate for an individual steam 

generator. The licensing basis accident 

analyses typically assume a 1 gallon per 

minute primary to secondary leak rate 

per steam generator, except for specific 

types of degradation at specific 

locations where the tubes are confined, 

as approved by the NRC and 

enumerated in conjunction with the list 

of approved repair criteria in the 

licensee’s design basis documents. 

The first performance criterion is 

commonly referred to as the structural 

integrity performance criterion and the 

second criterion is commonly referred 

to as the accident induced leakage 

performance criterion. As written, 

NUREG–1022 could be read to indicate 

that the principal safety barrier (i.e., the 

steam generator tubes in this case) 

would only be considered seriously 

degraded if it had neither structural nor 

leakage integrity. Accordingly, if the 

steam generator tubes lacked only one of 

structural or leakage integrity, they 

would not be considered seriously 

degraded. This is contradictory to 

existing NRC regulations which require, 

in part, that the reactor coolant pressure 

boundary (which includes the steam 

generator tubes) be designed to permit 

periodic inspection and testing of 

important areas and features to assess 

both their structural and leaktight 

integrity (refer to General Design 

Criterion 32 of Appendix A to 10 CFR 

part 50) and be designed and tested so 

as to have an extremely low probability 

of abnormal leakage, of rapidly 

propagating failure, and of gross rupture 

(refer to General Design Criterion 14 of 

Appendix A to 10 CFR part 50). The 

regulations, therefore, indicate that both 

structural and leakage integrity criteria 

must be satisfied, and not meeting either 

one of the two performance criteria 

should constitute serious degradation of 

the principal safety barrier. 

In response to the Federal Register

notice, one public comment was 

received from Progress Energy 

(ML040850494). The comment was that 

the notice did not indicate whether the 

new criteria would require the reevaluation of the reportability of 

existing steam generator tube 

degradation that was previously 

evaluated based on the criteria that were 

in effect before issuance of the errata. 

The commenter also indicated that 

57368 Federal Register / Vol. 69, No. 185 / Friday, September 24, 2004 / Notices 

1Applicants request that any relief granted 

pursuant to the application also apply to any other 

existing company with respect to which ADAM, 

PAD or PEA is an affiliated person (which 

subsequently becomes an investment adviser, 

subadviser, depositor or principal underwriter for 

any registered investment company) and to any 

other company with respect to which ADAM, PAD 

or PEA may become an affiliated person in the 

future (included in the term ‘‘Applicants’’).

retroactive application of the new event 

reporting criteria to previously 

evaluated events would add burden to 

the licensees but would not provide 

timely notification to the NRC. Based on 

this comment and the reasons set forth 

below, the staff recommends that the 

errata clarify that retroactive notification 

is necessary only required if either of 

the criteria were exceeded during the 

last steam generator tube inspections. 

The errata to NUREG–1022 are 

intended to clarify existing 

requirements rather than to establish 

new requirements or criteria; however, 

the NRC recognizes that the wording in 

NUREG–1022 may have resulted in 

confusion regarding whether a report 

was required, given the condition of the 

tubes. As a result, the staff assessed the 

purpose of the report, other steam 

generator tube inspection reports 

received, and the potential value of 

evaluating previous inspection results. 

These items are discussed further 

below. 

The main purpose of the event report 

is to notify the staff, in a timely manner, 

of significant degradation of the steam 

generator tubes. This report allows the 

staff to review the corrective actions 

taken, to assess the generic implications 

of the findings, and to take any 

regulatory action that may be 

appropriated. From a practical 

perspective, the staff and public are 

informed of the results of the steam 

generator tube inspections following 

each inspection through reports 

submitted to the NRC in accordance 

with technical specification reporting 

requirements. These reports are 

typically submitted to the NRC within 

one year of the inspection. As a result, 

if a licensee were to experience 

significant degradation of the steam 

generator tubes, the staff and public 

would have the opportunity to identify 

this through the review of these reports. 

In addition, it is highly likely that if 

significant degradation was observed, it 

would have been assessed as part of the 

reactor oversight process. For this 

reason, retroactive notification of 

previous occurrences when either 

criterion was exceeded is not likely to 

provide any new information. This logic 

holds for all previous inspections except 

for the last steam generator tube 

inspections since these results may not 

have been reported and/or the NRC may 

not have completed its review of these 

reports. As a result, the staff concludes 

that the last steam generator tube 

inspection results should be reviewed 

and if either criterion was exceeded, 

this should be reported in accordance 

with 10 CFR 50.72 and 50.73. Given that 

the industry’s steam generator initiative 

(referred to as NEI 97–06) has 

essentially the same criteria and all 

pressurized water reactors have 

committed to follow this initiative, no 

significant burden should be imposed 

on any licensee in assessing whether the 

criteria were exceeded during the last 

steam generator tube inspection.

ADDRESSES: Submit written comments 

to the Chief, Rules and Directives 

Branch, Division of Administrative 

Services, Office of Administration, U.S. 

Nuclear Regulatory Commission, Mail 

Stop T6–D59, Washington, DC 20555–

0001, and cite the publication date and 

page number of this Federal Register

notice. Written comments may also be 

delivered to NRC Headquarters, 11545 

Rockville Pike (Room T6–D59), 

Rockville, Maryland, between 7:30 a.m. 

and 4:15 p.m. on Federal workdays.

FOR FURTHER INFORMATION, CONTACT:

Samuel S. Lee at (301) 415–1061 or by 

e-mail to ssl@nrc.gov, or Kenneth J. 

Karwoski at (301) 415–2752 or by e-mail 

to kjk1@nrc.gov.

Dated in Rockville, Maryland, this 27th 

day of August, 2004.

For the Nuclear Regulatory Commission. 

Francis M. Costello, 

Acting Chief, Reactor Operations Branch, 

Division of Inspection Program Management, 

Office of Nuclear Reactor Regulation.

[FR Doc. 04–21424 Filed 9–23–04; 8:45 am] 

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. IC–26601; 812–13123] 

Allianz Dresdner Asset Management of 

America, L.P., et al.; Notice of 

Application 

September 17, 2004.

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’).

ACTION: Temporary order and notice of 

application for a permanent order under 

section 9(c) of the Investment Company 

Act of 1940 (the ‘‘1940 Act’’). 

SUMMARY OF APPLICATION: Applicants 

have received a temporary order 

exempting them from section 9(a) of the 

1940 Act, with respect to a consent 

order and final judgment entered by the 

Superior Court of New Jersey, Chancery 

Division—General Equity of Essex 

County (‘‘New Jersey Superior Court’’) 

on June 1, 2004 (the ‘‘New Jersey 

Order’’), until the earlier of September 

13, 2006, or the date the Commission 

takes action on the application for a 

permanent order. Applicants also have 

requested a permanent order.

APPLICANTS: Allianz Dresdner Asset 

Management of America L.P. 

(‘‘ADAM’’); PA Distributors LLC 

(‘‘PAD’’), PEA Capital LLC (‘‘PEA’’); PA 

Fund Management LLC (‘‘PAFM’’) 

(collectively, the ‘‘Consent Parties’’); 

Allianz Life Insurance Company of 

North America (‘‘Allianz Life NA’’); 

Allianz Life Insurance Company of New 

York (‘‘Allianz Life NY’’); Cadence 

Capital Management LLC; Caywood 

Scholl Capital Management LLC 

(‘‘Caywood Scholl’’); Dresdner Advisors 

LLC (‘‘Dresdner’’); NFJ Investment 

Group L.P. (‘‘NFJ’’); Nicholas-Applegate 

Capital Management LLC and NicholasApplegate Securities LLC (together, 

‘‘Nicholas-Applegate’’); OCC 

Distributors LLC, OpCap Advisors LLC 

and Oppenheimer Capital LLC (together, 

‘‘Oppenheimer’’); Pacific Investment 

Management Company LLC (‘‘PIMCO’’); 

PA Retail Holdings LLC (‘‘PA Retail’’); 

RCM Capital Management LLC 

(‘‘RCM’’); US Allianz Advisers LLC and 

US Allianz Investor Services LLC 

(together, ‘‘US Allianz’’) (collectively, 

the ‘‘Separate Parties,’’ and together 

with the Consent Parties, the 

‘‘Applicants’’).1

FILING DATE: The application was filed 

on September 17, 2004. 

Hearing or Notification of Hearing: A 

permanent order granting the requested 

relief will be issued unless the 

Commission orders a hearing. Interested 

persons may request a hearing by 

writing to the Commission’s Secretary 

and serving applicants with a copy of 

the request, personally or by mail. 

Hearing requests should be received by 

the Commission by 5:30 p.m. on 

October 12, 2004, and should be 

accompanied by proof of service on 

applicants, in the form of an affidavit or, 

for lawyers, a certificate of service. 

Hearing requests should state the nature 

of the writer’s interest, the reason for the 

request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

writing to the Commission’s Secretary.

ADDRESSES: Secretary, Securities and 

Exchange Commission, 450 Fifth Street, 

NW., Washington, DC 20549–0609. 

Applicants: ADAM, 888 San Clemente 

Drive, Suite 100, Newport Beach, CA 

92660; PAD, 2187 Atlantic Street, 

Stamford, CT 06902; PEA and PAFM,