SAFEGUARDS INFORMATION

 SAFEGUARDS INFORMATION Enclosure 1

 UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of )

 ) Docket No. 72-48

PSEG NUCLEAR LLC ) EA 05-086

HOPE CREEK/SALEM GENERATING )

STATIONS INDEPENDENT SPENT FUEL )

STORAGE INSTALLATION )

END OF ALLOWAY CREEK NECK ROAD )

HANCOCKS BRIDGE, NJ 08038 )

 ORDER MODIFYING LICENSE

(EFFECTIVE IMMEDIATELY)

I

PSEG Nuclear LLC (PSEG) has 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 CFR Part 50, and 10 CFR Part 72. This Order is being issued to PSEG who has

identified near-term plans to store spent fuel in an ISFSI under the general license provisions of

10 CFR Part 72. The Commission regulations at 10 CFR 72.212(b)(5) and 10 CFR 73.55(h)(1)

require PSEG to maintain safeguards contingency plan procedures in accordance with

10 CFR Part 73, Appendix C. Specific safeguards requirements are contained in 10

CFR 73.55.

II

On September 11, 2001, terrorists simultaneously attacked targets in New York, NY,

and Washington, DC, 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
1

 Attachment 1 contains SAFEGUARDS INFORMATION and will not be released to the

public. 

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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 and other governmental

agencies, 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 11

 of this Order, on PSEG

who has indicated near-term plans to store spent fuel in an ISFSI under the general license

provisions of 10 CFR 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 until the Commission

determines otherwise. 

The Commission recognizes that some measures may not be possible or necessary, or

may need to be tailored to accommodate the specific circumstances existing at PSEG’s facility

to achieve the intended objectives and avoid any unforeseen effect on the safe storage of spent

fuel.

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

achieve a consistent level of protection to address the current threat environment, the
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Commission concludes that security measures must be embodied in an Order consistent with

the established regulatory framework. PSEG’s general license issued pursuant to

10 CFR 72.210 shall be modified to include the requirements identified in Attachment 1 to this

Order. In addition, pursuant to 10 CFR 2.202, the Commission finds that in light of the common

defense and security matters described above, the public health, safety, and interest require

that this Order be effective immediately.

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 CFR 2.202

and 10 CFR Parts 50, 72, and 73, IT IS HEREBY ORDERED, EFFECTIVE IMMEDIATELY,

THAT YOUR GENERAL LICENSE IS MODIFIED AS FOLLOWS:

A. PSEG shall, notwithstanding the provisions of any Commission regulation or license to

the contrary, comply with the requirements described in Attachment 1 to this Order

except to the extent that a more stringent requirement is set forth in their security plan. 

PSEG shall immediately start implementation of the requirements in Attachment 1 to the

Order and shall complete implementation before October 31, 2005, or the first day spent

fuel is initially placed in the ISFSI, whichever is later.

B. 1. PSEG 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 1, (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
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licensee’s justification for seeking relief from or variation of any specific

requirement. 

2. If PSEG considers that implementation of any of the requirements described in

Attachment 1 to this Order would adversely impact the safe storage of spent fuel,

PSEG must notify the Commission, within twenty (20) days of this Order, 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 1 requirement(s) in question, or a

schedule for modifying the facility to address the adverse safety condition. If

neither approach is appropriate, PSEG 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. PSEG 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 1.

2. PSEG shall report to the Commission when they have achieved full compliance

with the requirements described in Attachment 1.

D. Notwithstanding the provisions of 10 CFR 72.212(b)(5), all measures implemented or actions taken in

response to this Order shall be maintained until the Commission determines otherwise.

PSEG’s responses to Conditions B.1, B.2, C.1, and C.2, shall be submitted in accordance with

10 CFR 72.4. In addition, submittals that contain Safeguards Information shall be properly

marked and handled in accordance with 10 CFR 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 PSEG of good cause. 
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 IV

In accordance with 10 CFR 2.202, PSEG 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, and the Director, Office of Enforcement, 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 Director, Office of

Enforcement at the same address; to the Assistant General Counsel for Materials Litigation and

Enforcement at the same address, to the Regional Administrator for NRC Region I at 475

Allendale Road, King of Prussia, PA 19406; 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 PSEG requests a hearing, that person shall
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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 CFR 2.714(d).

If a hearing is requested by PSEG 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 a hearing shall be whether this Order should be

sustained.

Pursuant to 10 CFR 2.202(c)(2)(i), PSEG 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 grounds that the Order, including the need for immediate

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

allegations, or error.

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
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/RA/

Margaret V. Federline, Acting Director

Office of Nuclear Material Safety

 and Safeguards

Dated this 5th day of May 2005.

Attachment 1: Interim Safeguards and Security 

 Compensatory Measures

 (Safeguards Information)