Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices 34723

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–220 and 50–410; License

Nos. DPR–63 and NPF–69]

In the Matter of Niagara Mohawk Power

Corporation, et al. (Nine Mile Point

Nuclear Station Unit Nos. 1 and 2);

Order Approving Transfer of Licenses

and Conforming Amendments

I

Niagara Mohawk Power Corporation

(NMPC) is the exclusive owner and

operator of Nine Mile Point Nuclear

Station, Unit 1 (NMP–1), and in regard

thereto, holds Facility Operating

License No. DPR–63. NMPC is also partowner and exclusive operator of Nine

Mile Point Nuclear Station, Unit No. 2

(NMP–2), and in connection therewith,

is a holder of Facility Operating License

No. NPF–69. The other co-owners of

NMP–2 and holders of the license are:

New York State Electric & Gas

Corporation (NYSEG), Rochester Gas

and Electric Corporation (RG&E),

Central Hudson Gas & Electric

Corporation (CHGEC), and Long Island

Lighting Company (LILCO, which is

doing business as Long Island Power

Authority). NMP–1 and NMP–2 (the

facilities) are located at the licensees’

site in Oswego County, New York.

II

By application dated February 1, 2001

(submitted in proprietary and nonproprietary versions), Constellation

Nuclear, LLC, on behalf of its indirect

subsidiary Nine Mile Point Nuclear

Station, LLC (NMP LLC), and NMPC,

NYSEG, RG&E, and CHGEC requested

the consent of the U.S. Nuclear

Regulatory Commission (NRC or

Commission) to a proposed direct

transfer of the licenses for NMP–1 and

NMP–2, to the extent held by the

foregoing applicants, to NMP LLC. The

application was supplemented by

submittals from Constellation Nuclear,

LLC, dated March 1, March 16, March

29, April 5, April 27, May 30 and June

7, 2001 (collectively herein referred to

as the Application). The Application

also requested the approval of

conforming license amendments to

reflect the direct transfer of the licenses.

The Application further requested

consent to certain indirect transfers of

the licenses, to the extent such would

occur following the direct transfers,

resulting from (1) a planned realignment

or restructuring of the Constellation

Energy Group (CEG), Inc. organization

of which NMP LLC is a part, and

establishment of a new intermediate

parent company of NMP LLC referred to

as New Controlled, and (2) the

acquisition by Virgo Holdings, Inc.

(Virgo), an indirect subsidiary of The

Goldman Sachs Group, Inc., of an equity

interest in NMP LLC and up to a 17.5%

voting interest in New Controlled,

coupled with the distribution of the

remaining voting shares of New

Controlled, all of which would be held

by CEG, Inc. up to the time of

distribution, to the existing public

shareholders of CEG, Inc., leaving Virgo

with the largest single voting interest in

NMP LLC’s ultimate parent company.

In connection with the direct

transfers, NMP LLC would assume title

to NMP–1 following approval of the

proposed license transfers, and would

assume the 82-percent ownership

interest in NMP–2 currently held by

NMPC (owner of a 41% interest),

NYSEG (18% interest), RG&E (14%

interest) and CHGEC (9% interest).

LILCO is not involved in the direct

transfer of NMP–2 and, therefore, will

remain a licensee with respect to its

18% ownership interest. In addition,

NMP LLC would become responsible for

the operation of both NMP–1 and NMP–

2. The Application states that NMP LLC

would also assume the

decommissioning responsibility of the

current owners of NMP–1 and NMP–2

who are transferring their interests in

the facilities to NMP LLC. NMP LLC

would provide decommissioning

funding assurance through the use of

decommissioning trusts coupled with

parent company guarantees.

The proposed conforming license

amendments would replace references

to NMPC, NYSEG, RG&E, and CHGEC in

the licenses with references to NMP

LLC, as appropriate, and make other

administrative changes to reflect the

proposed direct transfer.

The Application requested approval

of the direct transfer of the facility

operating licenses, conforming license

amendments, and possible indirect

license transfers pursuant to 10 CFR

50.80 and 10 CFR 50.90. The staff

published a notice of the request for

approval and an opportunity for a

hearing in the Federal Register on April

2, 2001 (66 FR 17584). The Commission

received no comments or requests for

hearing pursuant to the notice.

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 Commission shall

give its consent in writing. Upon review

of the information in the Application,

and relying upon the representations

and agreements contained in the

Application, the NRC staff has

determined that NMP LLC is qualified

to hold the licenses to the extent

proposed in the Application, that the

establishment of New Controlled as a

new intermediate parent of NMP LLC, if

such follows the direct license transfers,

will not affect the qualifications of NMP

LLC as the holder of the NMP–1 license

and as a holder of the NMP–2 license,

that the acquisition by Virgo of up to a

17.5% voting interest in New Controlled

coupled with CEG, Inc.’’s distribution of

its voting shares of New Controlled to

CEG, Inc.’’s shareholders, resulting in

Virgo becoming the largest single voting

shareholder of the ultimate corporate

parent of NMP LLC, if such follows the

direct license transfers, will not affect

the qualifications of NMP LLC as the

holder of the NMP–1 license and as a

holder of the NMP–2 license, and that

the direct transfer of the licenses to

NMP LLC as proposed and indirect

license transfers, to the extent effected

by the foregoing transactions if such

occur after the direct license transfers,

are 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

amendments complies with the

standards and requirements of the

Atomic Energy Act of 1954, as amended

(the Act), and the Commission’s rules

and regulations set forth in 10 CFR

Chapter I; the facilities 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

amendments 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 amendments

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 amendments

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 a safety evaluation dated

June 22, 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

direct transfer of the licenses as

described herein to NMP LLC, and the

indirect transfer of the licenses, to the

34724 Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices

extent effected by the transactions

described above that may occur

following the direct transfers, are

approved, subject to the following

conditions:

(1) NMP, LLC shall, prior to the

completion of the direct transfers,

provide to the Director of the Office of

Nuclear Reactor Regulation satisfactory

documentary evidence that NMP, LLC

has obtained the appropriate amount of

insurance required of licensees under 10

CFR Part 140 of the Commission’s

regulations.

(2) On the closing date of the transfer

of NMP1 and NMP2 to it, NMP LLC

shall: (1) obtain from the transferors all

of their accumulated decommissioning

trust funds for NMP1 and NMP2,

respectively, and (2) receive [a] parent

company guarantee[s] pursuant to 10

CFR 50.75(e)(1)(iii)(B) (to be updated

annually as required under 10 CFR

50.75(f)(1), unless otherwise approved

by the NRC) in a form acceptable to the

NRC and in [an] amount[s] which, when

combined with the decommissioning

trust funds for NMP1 and NMP2, equals

or exceeds the total amounts required

for NMP1 and NMP2, respectively,

pursuant to 10 CFR 50.75(b) and (c).

(3) The master decommissioning trust

agreement for NMP1 and NMP2, at the

time the direct transfers are effected and

thereafter, is subject to the following:

a. The decommissioning trust

agreement must be in a form acceptable

to the NRC.

b. With respect to the

decommissioning trust funds,

investments in the securities or other

obligations of CEG Inc., New Controlled,

or their affiliates, successors, or assigns,

are and shall be prohibited. Except for

investments tied to market indexes or

other non-nuclear sector mutual funds,

investments in any entity owning one or

more nuclear power plants are and shall

be prohibited.

c. The decommissioning trust

agreement must provide that no

disbursements or payments from the

trusts, other than for ordinary

administrative expenses, shall be made

by the trustee unless the trustee has first

given the NRC 30 days prior written

notice of the payment. The

decommissioning trust agreement shall

further contain a provision that no

disbursements or payments from the

trusts shall be made if the trustee

receives prior written notice of objection

from the Director of the Office of

Nuclear Reactor Regulation.

d. The decommissioning trust

agreement must provide that the

agreement cannot be amended in any

material respect without 30 days prior

written notification to the Director of

the Office of Nuclear Reactor

Regulation.

e. The appropriate section of the

decommissioning trust agreement shall

state that the trustee, investment

advisor, or anyone else directing the

investments made in the trusts shall

adhere to a ‘‘prudent investor’’ standard,

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

Federal Energy Regulatory

Commission’s regulations.

(4) NMP LLC shall take all necessary

steps to ensure that the

decommissioning trusts are maintained

in accordance with the Application, the

requirements of this Order, and the

related safety evaluation.

(5) At the time of the direct transfers,

NMP LLC shall enter or shall have

entered into an intercompany credit

agreement with CEG, Inc. or New

Controlled, whichever entity is the

ultimate parent of NMP LLC at that

time, in the form and on the terms

represented in the Application. Should

New Controlled become the ultimate

parent of NMP LLC following the direct

transfer of the licenses to NMP LLC,

NMP LLC shall enter or shall have

entered into a substantially identical

intercompany credit agreement with

New Controlled at the time New

Controlled becomes the ultimate parent;

in such case, any existing intercompany

credit agreement with CEG, Inc. may be

canceled once the intercompany credit

agreement with New Controlled is

established. Except as otherwise

provided above, NMP LLC shall take no

action to void, cancel, or modify any

intercompany credit agreement

referenced above, without the prior

written consent of the Director of the

Office of Nuclear Reactor Regulation.

(6) NMPC shall inform the Director of

the Office of Nuclear Reactor Regulation

of the date of the closing of the direct

transfers no later than two business days

prior to such date. If all of the direct and

indirect transfers of the licenses

approved by this Order are not

completed by June 30, 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.

It Is Further Ordered that, consistent

with 10 CFR 2.1315(b), license

amendments that make changes, as

indicated in Enclosure 2 to the cover

letter forwarding this Order, to conform

the licenses to reflect the subject direct

license transfers are approved. The

amendments shall be issued and made

effective at the time the proposed direct

license transfers are completed.

This Order is effective upon issuance.

For further details with respect to this

Order, see the initial application dated

February 1, 2001, the supplemental

submittals dated March 1, March 16,

March 29, April 5, April 27, May 30 and

June 7, 2001, and the safety evaluation

dated June 22, 2001, which are 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 22nd day

of June 2001.

For The Nuclear Regulatory Commission.

Jon R. Johnson,

Acting Director, Office of Nuclear Reactor

Regulation.

[FR Doc. 01–16387 Filed 6–28–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

Governors’ Designees Receiving

Advance Notification of Transportation

of Nuclear Waste

On January 6, 1982 (47 FR 596 and 47

FR 600), the Nuclear Regulatory

Commission (NRC) published in the

Federal Register final amendments to

10 CFR parts 71 and 73 (effective July

6, 1982), that require advance

notification to Governors or their

designees by NRC licensees prior to

transportation of certain shipments of

nuclear waste and spent fuel. The

advance notification covered in part 73

is for spent nuclear reactor fuel

shipments and the notification for part

71 is for large quantity shipments of

radioactive waste (and of spent nuclear

reactor fuel not covered under the final

amendment to 10 CFR part 73).

The following list updates the names,

addresses, and telephone numbers of

those individuals in each State who are

responsible for receiving information on

nuclear waste shipments. The list will

be published annually in the Federal

Register on or about June 30 to reflect

any changes in information.