[Federal Register Volume 66, Number 81 (Thursday, April 26, 2001)]
[Notices]
[Pages 21021-21022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10413]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-255, 72-005, License No. DPR-20]


Consumers Energy Company (Palisades Plant); Order Approving 
Transfer of Operating Authority and Conforming Amendment

I

    Consumers Energy Company (CEC or the licensee) is the holder of 
Facility Operating License No. DPR-20, which authorizes operation of 
the Palisades Plant (Palisades or the facility). The facility is 
located in Van Buren County, Michigan. The license authorizes CEC to 
possess, use, and operate Palisades.

II

    By application dated November 21, 2000, the Commission was informed 
that CEC entered into an Operating Services Agreement with Nuclear 
Management Company, LLC (NMC). Under the proposed transaction, NMC will 
be designated as the licensee authorized to use and operate Palisades 
in accordance with the terms and conditions of the license. The 
transaction involves no change in plant ownership. The licensee 
requested approval of the proposed transfer of operating authority 
under the Palisades Facility Operating License to NMC. The application 
also requested a conforming amendment to reflect the transfer. The 
proposed amendment would add NMC to the license and reflect that NMC is 
exclusively authorized to use and operate Palisades. As a result of the 
transfer of the license with respect to operating authority thereunder 
and the conforming license amendment, NMC will also become and act as 
the general licensee for the Independent Spent Fuel Storage 
Installation (ISFSI) at Palisades pursuant to 10 CFR 72.210.
    According to the application for approval filed by CEC, NMC would 
become the licensee authorized to use and operate Palisades following 
approval of the proposed license transfer. NMC will assume exclusive 
responsibility for the operation and maintenance of Palisades. 
Ownership of Palisades will not be affected by the proposed transfer of 
operating authority. CEC will retain its current ownership interest. 
NMC will not own any portion of Palisades. Likewise, CEC's entitlement 
to capacity and energy from Palisades will not be affected by the 
transfer of operating authority. No physical changes to the Palisades 
facility were proposed in the application.
    Approval of the transfer of operating authority under the Facility 
Operating License and conforming license amendment was requested by CEC 
pursuant to 10 CFR 50.80 and 10 CFR 50.90. Notice of the application 
for approval and an opportunity for a hearing was published in the 
Federal Register on December 19, 2000 (65 FR 79431). No hearing 
requests or written comments were received.
    Pursuant to 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 Commission shall give its consent in 
writing. After reviewing the information in the application by CEC and 
other information before the Commission, and relying upon the 
representations and agreements contained in the application, the NRC 
staff has determined that NMC is qualified to hold the operating 
authority under the license, and that the transfer of the operating 
authority under the license to NMC 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 I; 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 
the health and safety of the public; and the issuance of the proposed 
amendment will be in accordance with 10 CFR part 51 of the Commission's 
regulations and all applicable requirements have been satisfied. The 
foregoing findings are supported by a safety evaluation dated April 19, 
2001.

III

    Accordingly, pursuant to sections 161b, 161i, and 184 of the Atomic 
Energy Act of 1954, as amended, 42 U.S.C. 2201(b), 2201(i), and 2234, 
and 10 CFR 50.80, it is hereby ordered that the transfer of operating 
authority under the license, as described herein, to NMC

[[Page 21022]]

is approved, subject to the following conditions:
    (1) After receipt of all required regulatory approvals of the 
transfer of operating authority to NMC, CEC and NMC shall inform the 
Director of the Office of Nuclear Reactor Regulation in writing of such 
receipt within 5 business days, and of the date of the closing of the 
transfer no later than 7 business days prior to the date of closing. If 
the transfer is not completed by April 19, 2002, this Order shall 
become null and void, provided, however, upon written application and 
for good cause shown, such date may in writing be extended.
    (2) NMC shall, prior to completion of the transfer of operating 
authority for Palisades, provide the Director of the Office of Nuclear 
Reactor Regulation satisfactory documentary evidence that NMC has 
obtained the appropriate amount of insurance required of licensees 
under 10 CFR part 140 of the Commission's regulations.
    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 transfer of operating authority is approved. The 
amendment shall be issued and made effective at the time the proposed 
transfer is completed.
    This Order is effective upon issuance.
    For further details with respect to this action, see the 
application dated November 21, 2000, which is available for public 
inspection at the Commission's Public Document Room, located at One 
White Flint North, 11555 Rockville Pike (first floor), Rockville, 
Maryland, and accessible electronically through the ADAMS Public 
Electronic Reading Room link at the NRC Web site (http://www.nrc.gov).

    Dated at Rockville, Maryland, this 19th day of April 2001.

    For the Nuclear Regulatory Commission.
Samuel J. Collins,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 01-10413 Filed 4-25-01; 8:45 am]
BILLING CODE 7590-01-U