This section of the FEDERAL REGISTER

contains documents other than rules or

proposed rules that are applicable to the

public. Notices of hearings and investigations,

committee meetings, agency decisions and

rulings, delegations of authority, filing of

petitions and applications and agency

statements of organization and functions are

examples of documents appearing in this

section.

Notices Federal Register

70843

Vol. 65, No. 229

Tuesday, November 28, 2000

NUCLEAR REGULATORY

COMMISSION

[Docket No. 50–286]

In the Matter of Power Authority of the

State of New York (Indian Point

Nuclear Generating Unit No. 3); Order

Approving Transfer of License and

Conforming Amendment

I.

The Power Authority of the State of

New York (PASNY or the Authority) is

the holder of Facility Operating License

No. DPR–64, which authorizes

operation of the Indian Point Nuclear

Generating Unit No. 3 (IP3 or the

facility) at steady-state power levels not

in excess of 3025 megawatts thermal.

The facility, which is owned by PASNY,

is located in Westchester County, New

York. The license authorizes PASNY to

possess, use, and operate the facility.

II.

Under cover of letters dated May 11,

2000, and May 12, 2000, PASNY,

Entergy Nuclear Indian Point 3, LLC

(Entergy Nuclear IP3), and Entergy

Nuclear Operations, Inc. (ENO),

submitted an application requesting

approval of the proposed transfer of the

IP3 operating license to Entergy Nuclear

IP3 to possess and use and to ENO to

possess, use, and operate IP3, and

approval of a conforming amendment to

reflect the transfer. The application was

supplemented by letters dated June 13,

June 16, July 14, September 21, October

26, and November 3, 2000.

Entergy Nuclear IP3, a Delaware

corporation, is a wholly owned indirect

subsidiary of Entergy Corporation and a

wholly owned indirect subsidiary of

Entergy Nuclear Holding Company #1.

ENO, a Delaware corporation, is an

indirect wholly owned subsidiary of

Entergy Corporation, and a direct

wholly owned subsidiary of Entergy

Nuclear Holding Company #2. After

completion of the proposed transfer,

Entergy Nuclear IP3 would be the owner

of IP3 and ENO would be the operator

of IP3. The conforming amendment

would remove the current licensee from

the facility operating license and would

add Entergy Nuclear IP3 and ENO in its

place, as appropriate.

The applicants propose that, after the

sale and transfer of IP3 to Entergy

Nuclear IP3, the Authority would retain

all rights, title, and legal and beneficial

interest in the decommissioning trust

fund for the facility, while the trust fund

would remain at all times committed to

the decommissioning of IP3. The

September 21, 2000, supplement to the

application, filed by the Authority on

behalf of itself and the other transfer

applicants, includes the following

proposals and commitments relating

specifically to the Authority’s retention

of the decommissioning trust fund for

IP3:

(1) The Authority will waive any right

to deny, contest or challenge the NRC’s

jurisdiction over the Authority with

respect to IP3 to the extent that there

may arise in the future any matter

warranting action by the NRC to ensure

compliance with the NRC’s

decommissioning requirements

regarding the disposition and use of the

amounts accumulated in the

decommissioning trust fund and

retained by the Authority.

(2) Upon the transfer of IP3, and

pursuant to Section 7 of the

decommissioning agreement between

Entergy Nuclear IP3, Entergy Nuclear,

Inc., and the Authority, Entergy Nuclear

IP3 shall have the sole discretion to

permanently cease operations of IP3.

For purposes of compliance with NRC

requirements, by operation of the

transfer Entergy Nuclear IP3 and ENO

shall have sole responsibility for

decommissioning IP3, and the

Authority’s responsibility under

Commission jurisdiction with respect to

IP3 will be limited solely to the holding

and disbursement of funds for the

decommissioning of the unit. Entergy

Nuclear IP3 and ENO will have control

over all physical decommissioning

activities. The Authority’s waiver and

decommissioning responsibility as

described above only applies until the

Authority transfers the

decommissioning trust funds to Entergy

Nuclear IP3 or until the

decommissioning of IP3 has been

completed in accordance with NRC

regulations and guidance, whichever

shall first occur.

In addition, the November 3, 2000,

supplement to the application proposes

that the relevant trust agreement will

provide that the provisions or purpose

of the trust agreement may be enforced

by the NRC against the Authority and

the trustee with respect to the

disbursement of the trust funds to the

extent necessary to ensure compliance

with or satisfaction of the NRC’s

decommissioning requirements.

Approval of the transfer of the facility

operating license and the conforming

license amendment was requested by

PASNY, Entergy Nuclear IP3, and ENO,

pursuant to 10 CFR 50.80 and 50.90.

Notice of the request for approval and

an opportunity to request a hearing or

to submit written comments was

published in the Federal Register on

June 28, 2000 (65 FR 39954). Pursuant

to such notice, the Commission received

a hearing request dated July 14, 2000,

from the Nuclear Generation Employees

Association and William Carano,

Thomas Pulcher, and Richard Wiese, Jr.;

a hearing request dated July 17, 2000,

from the Utility Workers Union of

America, AFL–CIO, Local 1–2; a hearing

request dated July 26, 2000, from the

Town of Cortlandt Manor, New York,

and the Hendrick Hudson School

District; a hearing request dated July 31,

2000, from the County of Westchester,

New York; and a hearing request dated

July 31, 2000, from the Citizens

Awareness Network. These requests are

currently pending before the

Commission.

Pursuant to 10 CFR § 2.1316, during

the pendency of a hearing, the staff is

expected to promptly proceed with the

approval or denial of license transfer

requests consistent with the staff’s

findings in its safety evaluation. Notice

of the staff’s action shall be promptly

transmitted to the Presiding Officer and

parties to the proceeding. Commission

action on the pending hearing requests

is being handled independently of this

action.

Under 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 Nuclear Regulatory

Commission shall give its consent in

writing. After reviewing the information

in the application and all supplements

thereto (collectively, the application)

70844 Federal Register / Vol. 65, No. 229 / Tuesday, November 28, 2000 / Notices

and other information before the

Commission, and relying upon the

representations and agreements

contained in the application, the NRC

staff has determined that Entergy

Nuclear IP3 and ENO are qualified to be

the holders of the license to the extent

proposed in the application, and that

the transfer of the license to Entergy

Nuclear IP3 and ENO is otherwise

consistent with applicable 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,

and the Commission’s rules and

regulations set forth in 10 CFR Chapter

1; the facility will operate in conformity

with the application, 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 license 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 the staff’s safety

evaluation dated November 9, 2000.

III.

Accordingly, pursuant to Sections

161b, 161i, 161o, and 184 of the Atomic

Energy Act of 1954, as amended, 42

USC §§ 2201(b), 2201(i), 2201(o), and

2234, and 10 CFR 50.80, It is hereby

ordered that the transfer of the license

as described herein and in the

application to Entergy Nuclear IP3 and

ENO is approved, subject to the

following conditions:

(1) Before the completion of the sale

and transfer of IP3, Entergy Nuclear IP3

and ENO shall provide the Director,

Office of Nuclear Reactor Regulation,

satisfactory documentary evidence that

they have obtained the appropriate

amount of insurance required of

licensees under 10 CFR Part 140 of the

Commission’s regulations.

(2) For purposes of ensuring public

health and safety, Entergy Nuclear IP3,

upon the transfer of the IP3 license to

it, shall provide decommissioning

funding assurance for IP3 by the

prepayment or equivalent method, to be

held in a decommissioning trust fund

for the facility, of no less than the

amount required under NRC regulations

at 10 CFR 50.75. Any amount held in

any decommissioning trust maintained

by the Authority for IP3 after the

transfer of the IP3 license to Entergy

Nuclear IP3 may be credited towards the

amount required under this paragraph.

(3) If the assets of any

decommissioning trust maintained by

the Authority for IP3 are retained in

such trust following the transfer of the

IP3 license to Entergy Nuclear IP3 and

ENO instead of being transferred to any

trust established by Entergy Nuclear IP3,

the Authority shall maintain the assets

as retained in such trust in accordance

with the application for the transfer of

the IP3 license.

(4) The decommissioning trust

agreement shall provide that the use of

assets in the decommissioning trust

fund, in the first instance, shall be

limited to the expenses related to

decommissioning IP3 as defined by the

NRC in its regulations and issuances,

and as provided in the IP3 license and

any amendments thereto.

(5) The decommissioning trust

agreement shall provide that no

contribution to the decommissioning

trust fund that consists of property other

than liquid assets shall be permitted.

(6) With respect to the

decommissioning trust fund,

investments in the securities or other

obligations of the Authority, Entergy

Corporation, Entergy Nuclear IP3,

Entergy Nuclear FitzPatrick, LLC, ENO,

or affiliates thereof, or their successors

or assigns, shall be prohibited. Except

for investments that replicate the

composition of market indices or other

non-nuclear-sector mutual funds,

investments in any entity owning one or

more nuclear plants is prohibited.

(7) The decommissioning trust

agreement shall provide that no

disbursements or payments from the

trust, other than for ordinary

administrative expenses, shall be made

by the trustee until the trustee has first

given the NRC 30 days prior written

notice of the payment. In addition, the

trust agreement shall state that no

disbursements or payments from the

trust shall be made if the trustee

receives prior written notice of objection

from the Director, Office of Nuclear

Reactor Regulation.

(8) The decommissioning trust

agreement shall provide that the trust

agreement shall not be modified in any

material respect without the prior

written consent of the Director, Office of

Nuclear Reactor Regulation.

(9) The decommissioning trust

agreement shall provide that the

provisions or purpose of the trust

agreement may be enforced by the NRC

against the Authority and the trustee

with respect to the disbursement of the

trust funds to the extent necessary to

ensure compliance with or satisfaction

of the NRC’s decommissioning

requirements. The NRC shall not be a

beneficiary of the trust or of any of the

trust funds, unless required by law to be

so for the sole purpose of enforcing the

provisions or purpose of the trust

agreement as set forth above.

(10) Article VI of the

decommissioning trust agreement shall

require that, notwithstanding the

provision of Section 6.01(ii)(a) of the

current decommissioning trust

agreement, PASNY may not terminate

any fund established under the Master

Trust for IP3 except after requesting and

obtaining written consent from the

Director, Office of Nuclear Reactor

Regulation, or the Director, Office of

Nuclear Materials Safety and

Safeguards, as appropriate.

(11) Entergy Nuclear Indian Point 3,

or its successors or assigns, shall take no

action that would adversely affect any

contract between it and the Authority

for the Authority’s eventual payment of

decommissioning funds from the trust.

(12) Entergy Nuclear Indian Point 3,

or its successors or assigns, shall inform

the NRC within 30 days of any adverse

developments with respect to the

Authority’s ownership of the

decommissioning trust that could

reasonably be expected to lead to a

significant diminution of funds

available for decommissioning IP3.

(13) The appropriate section of the

decommissioning trust agreement shall

provide that the trustee, investment

advisor, or anyone else directing the

investments made in the trust shall

adhere to a ‘‘prudent investor’’ standard,

as specified in 18 CFR 35.32(a)(3) of the

Federal Energy Regulatory

Commission’s regulations.

(14) The Authority shall waive any

right to deny, contest or challenge the

NRC’s jurisdiction over the Authority

with respect to IP3 to the extent that

there may arise in the future any matter

warranting action by the NRC to ensure

compliance with the NRC’s

decommissioning requirements

regarding the disposition and use of the

amounts accumulated in the

decommissioning trust fund and

retained by the Authority, and remain

subject to the Commission’s jurisdiction

under Section 161 of the Atomic Energy

Act to issue orders to protect health and

to minimize danger to life or property

regarding any and all matters

Federal Register / Vol. 65, No. 229 / Tuesday, November 28, 2000 / Notices 70845

concerning compliance with the

Commission’s decommissioning

requirements regarding the disposition

and use of the amounts accumulated in

the decommissioning trust fund and

retained by the Authority, until such

time as the Authority transfers the

decommissioning trust fund to Entergy

Nuclear IP3 or the decommissioning of

IP3 has been completed in accordance

with NRC regulations and guidance,

whichever occurs first.

(15) Entergy Nuclear IP3 shall take all

necessary steps to ensure that the

decommissioning trust is maintained in

accordance with the application for the

transfer of the license for IP3 and the

requirements of this Order approving

the transfer, and consistent with the

safety evaluation supporting this Order.

(16) Entergy Nuclear IP3 and ENO

shall take no action to cause Entergy

Global Investments, Inc. or Entergy

International Ltd. LLC, or their parent

companies to void, cancel, or modify

the $70 million contingency

commitment to provide funding for IP3

as represented in the application,

without the prior written consent of the

Director, Office of Nuclear Reactor

Regulation.

(17) After receiving all required

regulatory approvals of the transfer of

IP3, the transfer applicants shall

immediately inform the Director, Office

of Nuclear Reactor Regulation, in

writing of such receipt, and state therein

the closing date of the sale and transfer

of IP3. This notice shall be given to the

Director, Office of Nuclear Reactor

Regulation at least three business days

before the closing date of the sale and

transfer of IP3. If the transfer of the

license is not completed by November 1,

2001, this Order shall become null and

void, provided, however, on written

application and for good cause shown,

this date may be extended.

It is further ordered that, consistent

with 10 CFR 2.1315(b), a license

amendment that makes changes, as

indicated in Enclosure 2 to the cover

letter forwarding this Order, to conform

the license to reflect the subject license

transfer is approved. The amendment

shall be issued and made effective at the

time the proposed license transfer is

completed.

This Order is effective upon issuance.

For further details with respect to this

Order, see the initial application

submitted under cover letters dated May

11 and May 12, 2000, and supplements

dated June 13, June 16, July 14,

September 21, October 26, and

November 3, 2000, and the safety

evaluation dated November 9, 2000,

which are available for public

inspection at the NRC’s Public

Document Room located at One White

Flint North, 11555 Rockville Pike (first

floor), Rockville, Maryland, and are

accessible electronically through the

ADAMS Public Electronic Reading

Room link at the NRC Web site (http:/

/www.nrc.gov).

Dated at Rockville, Maryland, this 9th day

of November 2000.

For the Nuclear Regulatory Commission.

Samuel J. Collins,

Director, Office of Nuclear Reactor

Regulation.

[FR Doc. 00–30283 Filed 11–27–00; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket No. 50–333]

In the Matter of Power Authority of the

State of New York; (James A.

FitzPatrick Nuclear Power Plant); Order

Approving Transfer of License and

Conforming Amendment

I.

The Power Authority of the State of

New York (PASNY or the Authority) is

the holder of Facility Operating License

No. DPR–59, which authorizes

operation of the James A. FitzPatrick

Nuclear Power Plant (FitzPatrick or the

facility) at steady-state power levels not

in excess of 2536 megawatts thermal.

The facility, which is owned by PASNY,

is located in Oswego County, New York.

The license authorizes PASNY to

possess, use, and operate the facility.

II.

Under cover of letters dated May 11,

2000, and May 12, 2000, PASNY,

Entergy Nuclear FitzPatrick, LLC

(Entergy Nuclear FitzPatrick), and

Entergy Nuclear Operations, Inc. (ENO),

submitted an application requesting

approval of the proposed transfer of the

FitzPatrick operating license to Entergy

Nuclear FitzPatrick to possess and use

and to ENO to possess, use, and operate

FitzPatrick, and approval of a

conforming amendment to reflect the

transfer. The application was

supplemented by letters dated June 13,

June 16, July 14, September 21, October

26, and November 3, 2000.

Entergy Nuclear FitzPatrick, a

Delaware corporation, is a wholly

owned indirect subsidiary of Entergy

Corporation and an indirect wholly

owned subsidiary of Entergy Nuclear

Holding Company #1. ENO, a Delaware

corporation, is an indirect wholly

owned subsidiary of Entergy

Corporation, and a direct wholly owned

subsidiary of Entergy Nuclear Holding

Company #2. After completion of the

proposed transfer, Entergy Nuclear

FitzPatrick would be the owner of

FitzPatrick, and ENO would be the

operator of FitzPatrick. The conforming

amendment would remove the current

licensee from the facility operating

license and would add Entergy Nuclear

FitzPatrick and ENO in its place, as

appropriate.

The applicants propose that, after the

sale and transfer of FitzPatrick to

Entergy Nuclear FitzPatrick, the

Authority would retain all rights, title,

and legal and beneficial interest in the

decommissioning trust fund for the

facility, while the trust fund would

remain at all times committed to the

decommissioning of FitzPatrick. The

September 21, 2000, supplement to the

application, filed by the Authority on

behalf of itself and the other transfer

applicants, includes the following

proposals and commitments relating

specifically to the Authority’s retention

of the decommissioning trust fund for

FitzPatrick:

(1) The Authority will waive any right

to deny, contest or challenge the NRC’s

jurisdiction over the Authority with

respect to FitzPatrick to the extent that

there may arise in the future any matter

warranting action by the NRC to ensure

compliance with the NRC’s

decommissioning requirements

regarding the disposition and use of the

amounts accumulated in the

decommissioning trust fund and

retained by the Authority.

(2) Upon the transfer of FitzPatrick,

and pursuant to Section 7 of the

decommissioning agreement between

Entergy Nuclear FitzPatrick, Entergy

Nuclear, Inc., and the Authority,

Entergy Nuclear FitzPatrick shall have

the sole discretion to permanently cease

operations of FitzPatrick. For purposes

of compliance with NRC requirements,

by operation of the transfer Entergy

Nuclear FitzPatrick and ENO shall have

sole responsibility for decommissioning

FitzPatrick, and the Authority’s

responsibility under Commission

jurisdiction with respect to FitzPatrick

will be limited solely to the holding and

disbursement of funds for the

decommissioning of the unit. Entergy

Nuclear FitzPatrick and ENO will have

control over all physical

decommissioning activities. The

Authority’s waiver and

decommissioning responsibility as

described above only applies until the

Authority transfers the

decommissioning trust funds to Entergy

Nuclear FitzPatrick or until the

decommissioning of FitzPatrick has

been completed in accordance with