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 72 LICENSEES ) EA-02-104

WHO CURRENTLY STORE OR HAVE )

NEAR TERM PLANS TO STORE )

SPENT FUEL IN AN ISFSI UNDER )

THE SPECIFIC 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 specific

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, 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 specific license provisions of 10 C.F.R. Part 72. Commission regulations at

10 C.F.R. § 72.184(b) 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. § 73.51 or 73.55, as applicable.
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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 specific

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 specific licenses

issued pursuant to 10 C.F.R. § 72.40 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 53, 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 72 and 73, IT IS HEREBY ORDERED, EFFECTIVE IMMEDIATELY, THAT ALL

SPECIFIC 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
Steve Redeker

Manager, Plant Closure &

Decommissioning

Rancho Seco

Docket No. 72-11

Sacramento Municipal Utility District

14440 Twin Cities Road

Herald, CA 95638

Stephen M. Quennoz

Vice President Power Supply/Generation

Trojan Nuclear Plant

Docket No. 72-17

Portland General Electric Company

121 South West Salmon Street

Portland, OR 97204

Mr. Warren Bergholz

Acting Manager

Idaho Operations Office

Docket Nos. 72-9 and 72-20

US Department of Energy

850 Energy Drive

Idaho Falls, ID 83401

Michael B. Sellman

President and CEO

Prairie Island Nuclear Generating Plant

Docket No. 72-10

Nuclear Management Company, LLC

700 First Street

Hudson, WI 54016

Charles Cruse

Vice President - Nuclear Energy

Calvert Cliffs Nuclear Power Plant 

Docket No. 72-8

Constellation Energy Group, Inc.

1650 Calvert Cliffs Pkwy

Office 2-OTF

Lusby, MD 20657

David Christian

Sr. Vice President Nuclear and 

 Chief Nuclear Officer 

North Anna Power Station

Docket No. 72-16

Virginia Electric & Power Company

5000 Dominion Blvd.

Glen Allen, VA 23060-6711

David Christian

Sr. Vice President Nuclear and 

 Chief Nuclear Officer

Surry Power Station

Docket No. 72-2

Virginia Electric & Power Company

5000 Dominion Blvd.

Glen Allen, VA 23060-7611

C. S. (Scotty) Hinnant

Senior Vice President and Chief Nuclear

Officer

H. B. Robinson Steam Electric Plant

Docket No. 72-3

Progress Energy, Inc.

410 South Wilmington St.

Raleigh, NC 27601

Michael S. Tuckman

Executive Vice President Nuclear

Generation

Oconee Nuclear Station

Docket No. 72-4

Duke Energy Corporation

526 South Church St

Mail Code EC 07 H

Charlotte NC 28242