Enclosure 1

7590-01-P

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of )

) Docket Nos. (as shown in Attachment 1)

ALL 10 C.F.R. PART 50 LICENSEES ) EA-02-104

WHO CURRENTLY STORE OR HAVE )

NEAR TERM PLANS TO STORE )

SPENT FUEL IN AN ISFSI UNDER )

THE GENERAL LICENSE PROVISIONS )

OF 10 C.F.R. PART 72 )

)

ORDER MODIFYING LICENSES

(EFFECTIVE IMMEDIATELY)

I.

The licensees identified in Attachment 1 to this Order have been issued a general

license by the U.S. Nuclear Regulatory Commission (NRC or the Commission) authorizing

storage of spent fuel in an independent spent fuel storage installation (ISFSI) in accordance

with the Atomic Energy Act of 1954, 10 C.F.R. Part 50, and 10 C.F.R. Part 72. This Order is

being issued to all licensees who currently store spent fuel or have identified near term plans to

store spent fuel in an ISFSI under the general license provisions of 10 C.F.R. Part 72. 

Commission regulations at 10 C.F.R. § 72.212(b)(5) and 10 C.F.R. § 73.55(h)(1) require these

licensees to maintain safeguards contingency plan procedures in accordance with 10 C.F.R.

Part 73, Appendix C. Specific safeguards requirements are contained in 10 C.F.R. § 73.55.
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1

 Attachment 2 contains SAFEGUARDS information and will not be released to the

public.

II.

On September 11, 2001, terrorists simultaneously attacked targets in New York, N.Y.,

and Washington, D.C., utilizing large commercial aircraft as weapons. In response to the

attacks and intelligence information subsequently obtained, the Commission issued a number

of Safeguards and Threat Advisories to its licensees in order to strengthen licensees’

capabilities and readiness to respond to a potential attack on a nuclear facility. The

Commission has also communicated with other Federal, State, and local government agencies

and industry representatives to discuss and evaluate the current threat environment in order to

assess the adequacy of security measures at licensed facilities. In addition, the Commission

has been conducting a comprehensive review of its safeguards and security programs and

requirements.

As a result of its consideration of current safeguards and security plan requirements, as

well as a review of information provided by the intelligence community, the Commission has

determined that certain compensatory measures are required to be implemented by licensees

as prudent, interim measures, to address the current threat environment in a consistent manner

throughout the nuclear ISFSI community. Therefore, the Commission is imposing

requirements, as set forth in Attachment 21

 of this Order, on all licensees who currently store

spent fuel or have identified near term plans to store spent fuel in an ISFSI under the general

license provisions of 10 C.F.R. Part 72. These interim requirements, which supplement existing

regulatory requirements, will provide the Commission with reasonable assurance that the public

health and safety and common defense and security continue to be adequately protected in the

current threat environment. These requirements will remain in effect pending notification from
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the Commission that a significant change in the threat environment has occurred, or the

Commission determines that other changes are needed. 

The Commission recognizes that licensees may have already initiated many of the

measures set forth in Attachment 2 to this Order in response to previously issued advisories or

on their own. It is also recognized that some measures may not be possible or necessary at

some sites, or may need to be tailored to accommodate the specific circumstances existing at

the licensee’s facility to achieve the intended objectives and avoid any unforeseen effect on the

safe storage of spent fuel.

Although the additional security measures implemented by the licensees in response to

the Safeguards and Threat Advisories have been adequate to provide reasonable assurance of

adequate protection of public health and safety, the Commission concludes that the security

measures must be embodied in an Order, consistent with the established regulatory framework. 

In order to provide assurance that licensees are implementing prudent measures to achieve a

consistent level of protection to address the current threat environment, all general licenses

issued pursuant to 10 C.F.R. § 72.210 to the licensees identified in Attachment 1 to this Order

shall be modified to include the requirements identified in Attachment 2 to this Order. In

addition, pursuant to 10 C.F.R. § 2.202, I find that in the circumstances described above, the

public health, safety and interest require that this Order be effective immediately.
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III.

Accordingly, pursuant to Sections 103, 104, 161b, 161i, 161o, 182 and 186 of the

Atomic Energy Act of 1954, as amended, and the Commission’s regulations in

10 C.F.R. § 2.202 and 10 C.F.R. Parts 50, 72 and 73, IT IS HEREBY ORDERED, EFFECTIVE

IMMEDIATELY, THAT ALL GENERAL LICENSES IDENTIFIED IN ATTACHMENT 1 TO THIS

ORDER ARE MODIFIED AS FOLLOWS:

A. All licensees shall, notwithstanding the provisions of any Commission regulation or

license to the contrary, comply with the requirements described in Attachment 2 to this

Order except to the extent that a more stringent requirement is set forth in the licensee’s

security plan. The licensees shall immediately start implementation of the requirements

in Attachment 2 to the Order and shall complete implementation by April 16, 2003, or

the first day that spent fuel is initially placed in the ISFSI, whichever is later.

B. 1. All licensees shall, within twenty (20) days of the date of this Order, notify the

Commission, (1) if they are unable to comply with any of the requirements

described in Attachment 2, (2) if compliance with any of the requirements is

unnecessary in their specific circumstances, or (3) if implementation of any of the

requirements would cause the licensee to be in violation of the provisions of any

Commission regulation or the facility license. The notification shall provide the

licensees’ justification for seeking relief from or variation of any specific

requirement. 

2. Any licensee that considers that implementation of any of the requirements

described in Attachment 2 to this Order would adversely impact the safe storage

of spent fuel must notify the Commission, within twenty (20) days of this Order, 
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of the adverse safety impact, the basis for its determination that the requirement

has an adverse safety impact, and either a proposal for achieving the same

objectives specified in the Attachment 2 requirement in question, or a schedule

for modifying the facility to address the adverse safety condition. If neither

approach is appropriate, the licensee must supplement its response to Condition

B.1 of this Order to identify the condition as a requirement with which it cannot

comply, with attendant justifications as required in Condition B.1. 

C. 1. All licensees shall, within twenty (20) days of the date of this Order, submit to

the Commission, a schedule for achieving compliance with each requirement

described in Attachment 2. 

2. All licensees shall report to the Commission when they have achieved full

compliance with the requirements described in Attachment 2.

D. Notwithstanding the provisions of 10 C.F.R. § 72.186, all measures implemented or

actions taken in response to this Order shall be maintained pending notification from the

Commission that a significant change in the threat environment has occurred, or the

Commission determines that other changes are needed.

Licensee responses to Conditions B.1, B.2, C.1, and C.2, above shall be submitted in

accordance with 10 C.F.R. § 72.4. In addition, licensee submittals that contain Safeguards

Information shall be properly marked and handled in accordance with 10 C.F.R. § 73.21.

The Director, Office of Nuclear Material Safety and Safeguards may, in writing, relax or

rescind any of the above conditions upon demonstration by the licensee of good cause. 
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IV.

In accordance with 10 C.F.R. § 2.202, the licensee must, and any other person

adversely affected by this Order may, submit an answer to this Order, and may request a

hearing on this Order, within twenty (20) days of the date of this Order. Where good cause is

shown, consideration will be given to extending the time to request a hearing. A request for

extension of time in which to submit an answer or request a hearing must be made in writing to

the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory

Commission, Washington, DC 20555, and include a statement of good cause for the extension. 

The answer may consent to this Order. Unless the answer consents to this Order, the answer

shall, in writing and under oath or affirmation, specifically set forth the matters of fact and law

on which the licensee or other person adversely affected relies and the reasons as to why the

Order should not have been issued. Any answer or request for a hearing shall be submitted to

the Secretary, Office of the Secretary of the Commission, U.S. Nuclear Regulatory

Commission, ATTN: Rulemakings and Adjudications Staff, Washington, DC 20555. Copies

also shall be sent to the Director, Office of Nuclear Material Safety and Safeguards, U.S.

Nuclear Regulatory Commission, Washington, DC 20555, to the Assistant General Counsel for

Materials Litigation and Enforcement at the same address; to the Regional Administrator for

NRC Region I, II, III, or IV, as appropriate for the specific facility; and to the licensee if the

answer or hearing request is by a person other than the licensee. Because of potential

disruptions in delivery of mail to United States Government offices, it is requested that answers

and requests for hearing be transmitted to the Secretary of the Commission either by means of

facsimile transmission to 301-415-1101 or by e-mail to hearingdocket@nrc.gov and also to the

Office of the General Counsel either by means of facsimile transmission to 301-415-3725 or by

e-mail to OGCMailCenter@nrc.gov. If a person other than the licensee requests a hearing, that
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2

The most recent version of Title 10 of the Code of Federal Regulations, published January 1, 2002,

inadvertently omitted the last sentence of 10 CFR 2.714 (d) and paragraphs (d)(1) and (d)(2) regarding petitions to

intervene and contentions. For the complete, corrected text of 10 CFR 2.714 (d), please see 67 FR 20884; April 29,

2002.

person shall set forth with particularity the manner in which his interest is adversely affected by

this Order and shall address the criteria set forth in 10 C.F.R. § 2.714(d).2

If a hearing is requested by the licensee or a person whose interest is adversely

affected, the Commission will issue an Order designating the time and place of any hearing. If

a hearing is held, the issue to be considered at such hearing shall be whether this Order should

be sustained. 

Pursuant to 10 C.F.R. § 2.202(c)(2)(i), the licensee may, in addition to demanding a

hearing, at the time the answer is filed or sooner, move the presiding officer to set aside the

immediate effectiveness of the Order on the ground that the Order, including the need for

immediate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded

allegations, or error.
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In the absence of any request for hearing, or written approval of an extension of time in

which to request a hearing, the provisions specified in Section III above shall be final twenty

(20) days from the date of this Order without further order or proceedings. If an extension of

time for requesting a hearing has been approved, the provisions specified in Section III shall be

final when the extension expires if a hearing request has not been received. AN ANSWER OR

A REQUEST FOR HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF

THIS ORDER.

FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

Margaret V. Federline, Deputy Director

Office of Nuclear Material Safety

 and Safeguards

Dated this 16 th day of October 2002.
Attachment 1

Address List
Oliver D. Kingsley, Jr.

President and Chief Nuclear Officer

Dresden Nuclear Power Station

Docket No. 72-37

Exelon Generation Company, LLC

4300 Winfield Road

Warrenville, IL 60555

Michael B. Sellman

President and CEO

Point Beach Nuclear Plant

Docket No. 72-5

Nuclear Management Company, LLC

700 First Street

Hudson, WI 54016

Michael B. Sellman

President and CEO

Palisades Plant

Docket No. 72-7

Nuclear Management Company, LLC

700 First Street

Hudson, WI 54016

Robert F. Saunders

President and Chief Nuclear Officer

Davis-Besse Nuclear Power Station

Docket No. 72-14

FirstEnergy Nuclear Operating Company

FirstEnergy Corporation

76 South Main Street

Akron, OH 44308

Robert G. Byram

Senior Vice President & Chief Nuclear

Officer

Susquehanna Steam Electric Station

Docket No. 72-28

PPL Susquehanna, LLC

2 North Ninth Street

Allentown, PA 18101

Oliver D. Kingsley, Jr.

President and Chief Nuclear Officer

Peach Bottom Atomic Power Station

Docket No. 72-29

Exelon Generation Company

4300 Winfield Road

Warrenville, IL 60555

Michael S. Tuckman

Executive Vice President Nuclear

Generation

Oconee Nuclear Station

Docket No. 72-40

Duke Energy Corporation

526 South Church St

Mail Code EC 07 H

Charlotte NC 28242

Michael S. Tuckman

Executive Vice President Nuclear

Generation

William B. McGuire Nuclear Station 

Docket No. 72-38

Duke Energy Corporation

526 South Church St

Mail Code EC 07 H

Charlotte NC 28242

W. G. Hairston, III

President and Chief Executive Officer

Edwin I. Hatch Nuclear Plant 

Docket No. 72-36

Southern Nuclear Operating Company, Inc.

40 Inverness Center Parkway

Birmingham, AL 35242

Gary J. Taylor

Senior Vice President and Chief Operating

Officer

Arkansas Nuclear One 

Docket No. 72-13

Entergy Operations Inc.

1340 Echelon Parkway

Jackson, MS 39213
Harold B. Ray

Executive Vice President

San Onofre Nuclear Generating Station

Docket No. 72-41

Southern California Edison

8631 Rush Street

Rosemead, CA 91770

James M. Levine

Executive Vice President and Chief

Operating Officer

Palo Verde Nuclear Generating Station

Docket No. 72-44

Arizona Public Service Company

400 North 5th Street, MS 9046

Phoenix, AZ 85004

J. V. Parrish

Chief Executive Officer

Columbia Generating Station

Docket No. 72-35

Energy Northwest

MD 1023

Snake River Warehouse

North Power Plant Loop

Richland, WA 99352

Michael B. Sellman

President and Chief Executive Officer 

Duane Arnold Energy Center

Docket No. 72-32

Nuclear Management Company, LLC,

700 First Street

Hudson WI 54016

Robert A. Fenech

Senior Vice President, Nuclear, Fossil, and

Hydro Operations

Big Rock Point Nuclear Plant

Docket No. 72-43

Consumers Energy Company

212 West Michigan Avenue

Jackson, MI 49201

Michael Kansler

Senior Vice President and Chief Operating

Officer

James A. Fitzpatrick Nuclear Power Plant

Docket No. 72-12 

Entergy Nuclear Operations, Inc.

440 Hamilton Avenue

White Plains, NY 10601

Russell A. Mellor

President

Yankee Nuclear Power Station

Docket No. 72-31

Yankee Atomic Electric Company

19 Midstate Drive, Suite 200

Auburn, MA 01501

Michael J. Meisner

Chief Nuclear Officer

Maine Yankee Atomic Power Station

Docket No. 72-30

Maine Yankee Atomic Power Company

321 Old Ferry Road

Wiscasset, Maine 04578-4922

K. J. Heider

Vice President - Operations and

Decommissioning

Haddam Neck Plant

Connecticut Yankee Atomic Power Co.

Docket No. 72-39

362 Injun Hollow Road

East Hampton, CT 06424-3099

Oliver D. Kingsley, Jr.

President and Chief Nuclear Officer

Oyster Creek Nuclear Generating Station

Docket No. 72-15

Exelon Generation Company, LLC

4300 Winfield Road

Warrenville, IL 60555
John A. Scalice

Chief Nuclear Officer and Executive Vice

President

Sequoyah Nuclear Plant

Docket No. 72-34

Tennessee Valley Authority

6A Lookout Place

1101 Market Street

Chattanooga, TN 37402-2801

W. G. Hairston, III

President and Chief Executive Officer

Joseph M. Farley Nuclear Plant

Docket No. 72-42

Southern Nuclear Operating Company, Inc.

40 Inverness Center Parkway

Birmingham, AL 35242