Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / Notices 67557

1Reliant was formerly known as Houston

Lighting & Power Company (HL&P). HL&P changed

its name to Reliant Energy Incorporated in 1999.

actual physical measurements, and

visual inspections for damage,

corrosion, or other potentially

unacceptable conditions;

b. JLS&A will document the results of

each inspection in separate reports

approved by the QA Administrator and

prepared in accordance with the revised

QA Program Plan and implementing

procedures. The report will include the

list of attributes verified, the acceptance

criteria, and the results for each

attribute;

2. JLS&A will use only JLS&A’s staff,

contractors, and sub-contractors, trained

in the NTCAP, the revised QAPP and

implementing procedures for

conducting the inspections listed in the

above condition; and,

3. JLS&A will not make the initial

shipment without certification by the

independent auditor that the two

conditions listed above have been

completed. JLS&A will provide NRC

with this certification prior to any

shipment.

By its letter of December 11, 2001,

JLS&A consented to issuance of this

Confirmatory Order granting interim

relief from the July 2001 Order subject

to the commitments, (as described in

Section IV below), agreed that this

Confirmatory Order is to be effective

upon issuance, and agreed to waive its

right to a hearing on this action.

Implementation of these commitments

will provide assurance that sufficient

resources will be applied to the QA

program, and that the program will be

conducted safely and in accordance

with NRC requirements.

I find that JLS&A’s commitments as

set forth in Section IV are acceptable

and necessary and conclude that with

these commitments the public health

and safety are reasonably assured. In

view of the foregoing, I have determined

that the public health and safety require

that JLS&A’s commitments be confirmed

by this Confirmatory Order. Based on

the above and JLS&A’s consent, this

Confirmatory Order is effective

immediately upon issuance.

IV

Accordingly, pursuant to Sections 62,

81, 161b, 161i, 182 and 186 of the

Atomic Energy Act of 1954, as amended,

and the Commission’s regulations in 10

CFR Section 2.202 and 10 CFR Parts 71,

IT IS HEREBY ORDERED, EFFECTIVE

IMMEDIATELY, THAT THE JULY 3,

2001, ORDER IS RELAXED TO GRANT

INTERIM RELIEF TO ALLOW A

SHIPMENT TO, AND A SHIPMENT

FROM, SURRY POWER STATION IN 20

WC PACKAGES IN ACCORDANCE

WITH JLS&A’S NTCAP, AS

REQUESTED BY LETTERS DATED

DECEMBER 7 and 11, 2001, PROVIDED:

1. a. JLS&A will use the implementing

procedures for the 1995 QA program

plan, as revised, and the NTCAP to

complete an inspection of the 20WC

packages involved in the Surry

shipment. The inspection will confirm

that the packages are in conformance

with 49 CFR 178.362, ‘‘Specification

20WC Wooden Protective Jacket.’’ Each

inspection will include, at a minimum,

actual physical measurements, and

visual inspections for damage,

corrosion, or other potentially

unacceptable conditions;

b. JLS&A will document the results of

each inspection in separate reports

approved by the QA Administrator and

prepared in accordance with the revised

QAPP and implementing procedures.

The report will include the list of

attributes verified, the acceptance

criteria, and the results for each

attribute;

2. JLS&A will use only JLS&A’s staff,

contractors, and sub-contractors, trained

in the NTCAP, the revised QAPP and

implementing procedures for

conducting the inspections listed in the

above condition; and,

3. JLS&A will not make the initial

shipment without certification by the

independent auditor that the two

conditions listed above have been

completed. JLS&A will provide NRC

with this certification prior to any

shipment.

The Director, Office of Enforcement or

Office of Nuclear Material Safety and

Safeguards, may in writing, relax or

rescind this Confirmatory Order upon

demonstration of good cause by the

Approval Holder.

V

In accordance with 10 CFR section

2.202, any person, other than JLS&A,

adversely affected by this Confirmatory

Order may request a hearing within 20

days of its issuance. Where good cause

is shown, consideration will be given to

extending the time to request a hearing.

A request for extension of time must be

made in writing to the Director, Office

of Enforcement, U.S. Nuclear Regulatory

Commission, Washington, DC 20555,

and include a statement of good cause

for the extension. Any request for a

hearing shall be submitted to the

Secretary, U.S. Nuclear Regulatory

Commission, ATTN: Rulemakings and

Adjudications Staff, Washington, DC

20555. Copies of the hearing request

also should be sent to the Director,

Office of Enforcement, U.S. Nuclear

Regulatory Commission, Washington,

DC 20555, to the Director, Office of

Nuclear Material Safety and Safeguards

at the same address, to the Assistant

General Counsel for Materials Litigation

and Enforcement at the same address, to

the Regional Administrator, NRC Region

IV, 611 Ryan Plaza Drive, Suite 400,

Arlington, TX 76011, and to the

Approval Holder. If such person

requests a hearing, that person shall set

forth with particularity the manner in

which his or her interest is adversely

affected by this Confirmatory Order and

shall address the criteria set forth in 10

CFR section 2.714(d).

If a hearing is requested by 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 Confirmatory Order should

be sustained.

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 IV above shall be final 20 days

from the date of this Confirmatory Order

without further Order or proceedings. If

an extension of time for requesting a

hearing has been approved, the

provisions specified in section IV shall

be final when the extension expires if a

hearing request has not been received. A

request for hearing shall not stay the

immediate effectiveness of this

confirmatory order.

Dated this 13th day of December, 2001.

For the Nuclear Regulatory Commission.

Frank J. Congel,

Director, Office of Enforcement.

[FR Doc. 01–32062 Filed 12–28–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–498 and 50–499; License

Nos. NPF–76 and NPF–80]

South Texas Project Nuclear Operating

Company et al., (South Texas Project

Electric Generating Station, Unit Nos. 1

and 2); Order Approving Transfer of

Licenses and Conforming

Amendments

I

Reliant Energy Incorporated

(Reliant),1 the City Public Service Board

of San Antonio (CPS), Central Power

and Light Company (CPL), and the City

of Austin, Texas (COA) are the licensed

owners, and South Texas Project

Nuclear Operating Company (STPNOC)

67558 Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / Notices

is the exclusive licensed operator, of

South Texas Project Electric Generating

Station, Units 1 and 2 (STPEGS), and in

regard thereto, hold Facility Operating

License Nos. NPF–76 and NPF–80.

STPEGS (the facility) is located in

Matagorda County, Texas.

II

By application dated May 31, 2001, as

supplemented by letters dated June 14,

August 13, October 16, and November 7,

2001 (collectively the application),

STPNOC, on behalf of Reliant, requested

the consent of the U.S. Nuclear

Regulatory Commission (NRC or

Commission) to a proposed indirect

transfer of control of the 30.8 percent

undivided ownership interest of Reliant

in STPEGS under Facility Operating

License Nos. NPF–76 and NPF–80, to

CenterPoint Energy, Inc., a newlyformed company that will be the new

parent holding company of Reliant, and,

to the extent an indirect transfer would

result, Reliant’s 30.8 percent interest in

STPNOC, the licensed operator of

STPEGS under the licenses, to

CenterPoint Energy, Inc. The

application also requested the consent

of the Commission to a proposed direct

transfer of Reliant’s 30.8 percent

ownership interest in STPEGS to Texas

Genco LP, which will be indirectly

wholly-owned by CenterPoint Energy,

Inc., and to the indirect transfer of

Reliant’s 30.8 percent interest in

STPNOC to Texas Genco LP, to the

extent that the transfer of Reliant’s

ownership interest in STPNOC will

result in an indirect transfer of the

STPNOC licenses. According to the

application, the proposed direct transfer

may occur contemporaneously with

CenterPoint Energy, Inc. becoming the

parent holding company of Reliant or

some time thereafter. The application

further requested the approval of

conforming license amendments to

reflect the direct transfer of the licenses.

The proposed conforming license

amendments would replace references

to HL&P in the licenses with references

to Texas Genco LP, 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 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 September 28, 2001 (66 FR

49711). The October 16 and November

7, 2001, supplemental information did

not expand the scope of the application

as originally noticed in the Federal

Register. 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 the proposed corporate

restructuring resulting in CenterPoint

Energy Inc. becoming the parent holding

company of Reliant will not affect the

qualifications of Reliant to hold a 30.80

percent ownership interest in the

facility operating licenses for STPEGS or

have any effect on the qualifications of

STPNOC to the extent held by Reliant,

and that the indirect transfer of the

licenses for STPEGS and of STPNOC’s

licenses to the extent effected by the

proposed corporate restructuring, is

otherwise consistent with applicable

provisions of law, regulations, and

Orders issued by the Commission,

subject to the applicable conditions set

forth herein. The NRC staff has also

determined that Texas Genco LP is

qualified to be a holder of the facility

operating licenses for STPEGS, and to

the extent that the transfer of Reliant’s

interest in STPNOC to Texas Genco LP

results in an indirect transfer of the

STPNOC license, the transfer will not

affect the qualifications of STPNOC to

be the licensed operator, and that the

transfer of the licenses is otherwise

consistent with applicable provisions of

law, regulations, and Orders issued by

the Commission, subject to the

conditions set forth herein. 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

December 20, 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 indirect transfer of the licenses as

described herein to CenterPoint Energy,

Inc., and the direct transfer of the

licenses as described herein to Texas

Genco LP are approved, subject to the

following conditions:

(1) Texas Genco LP shall, prior to the

completion of the direct transfer,

provide to the Director of the Office of

Nuclear Reactor Regulation satisfactory

documentary evidence that Texas Genco

LP has obtained the appropriate amount

of insurance required of licensees under

10 CFR part 140 of the Commission’s

regulations.

(2) Reliant shall continue to provide

decommissioning funding assurance, to

be held in decommissioning trusts for

STPEGS, from the date of the indirect

transfer until the date of any direct

transfer to Texas Genco LP. Texas Genco

LP shall provide decommissioning

funding assurance, to be held in

decommissioning trusts for STPEGS

upon the direct transfer of the STPEGS

licenses to Texas Genco LP, in an

amount equal to or greater than the

balance in the STPEGS

decommissioning trusts immediately

prior to the transfer. In addition, Texas

Genco LP shall ensure that all

contractual arrangements referred to in

the application to obtain necessary

decommissioning funds for STPEGS

through a non-bypassable charge are

executed and will be maintained until

the decommissioning trusts are fully

funded, or shall ensure that other

mechanisms that provide equivalent

assurance of decommissioning funding

in accordance with the Commission’s

regulations are maintained.

(3) The master decommissioning trust

agreement for STPEGS, 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 CenterPoint Energy, Inc.,

or its affiliates, successors, or assigns,

shall be prohibited. Except for

Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / Notices 67559

investments in funds tied to market

indices or other non-nuclear sector

mutual funds, investments in any entity

owning one or more nuclear power

plants are prohibited.

c. The decommissioning trust

agreement must provide that the trustee,

investment advisor, or anyone else

directing the investments made in the

trusts shall adhere to the standards for

such investments established by the

Public Utility Commission of Texas

(e.g., 16 Texas Administration Code

§ 25.301).

d. The decommissioning trust

agreement must provide that except for

ordinary administrative expenses, no

disbursements or payments from the

trusts shall be made by the trustee

unless the trustee has first given the

NRC 30 days prior written notice of

such disbursement or 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 an

objection from the Director, Office of

Nuclear Reactor Regulation.

e. The decommissioning trust

agreement must provide that the

agreement cannot be modified in any

material respect without 30 days prior

written notification to the Director,

Office of Nuclear Reactor Regulation.

(4) Reliant and Texas Genco LP 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) Texas Genco LP shall provide the

Director, Office of Nuclear Reactor

Regulation a copy of any application, at

the time it is filed, to transfer (excluding

grants of security interests or liens) from

CenterPoint Energy, Inc., or its

subsidiaries, to a proposed direct or

indirect parent, or to any other affiliated

company, facilities for the production of

electric energy having a depreciated

book value exceeding ten percent (10%)

of such licensee’s consolidated net

utility plant, as recorded on Texas

Genco LP’s book of accounts.

(6) Texas Genco LP shall inform the

Director of the Office of Nuclear Reactor

Regulation of the date of the closing of

the direct transfer no later than two

business days prior to such date. If the

direct and indirect transfers of the

licenses approved by this Order are not

completed by December 31, 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. It is

hereby noted that the staff is also

considering approving a transfer of the

licenses to the extent held by CPL.

Should the transfer of the licenses to the

extent held by CPL take place prior to

issuance of the amendments in the

current case, the amendments approved

here should reflect any conforming

amendments approved and issued in

connection with the CPL transfer.

This Order is effective upon issuance.

For further details with respect to this

Order, see the initial application dated

May 31, 2001, the supplemental

submittals dated June 14, August 13,

October 16, and November 7, 2001, and

the safety evaluation dated December

20, 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. Publicly

available records will be accessible

electronically from the Agencywide

Documents Access and Management

Systems (ADAMS) Public Electronic

Reading Room on the internet at the

NRC Web site, http://www.nrc.gov.

Dated at Rockville, Maryland this 20th day

of December, 2001.

For the Nuclear Regulatory Commission.

Brian W. Sheron,

Acting Director, Office of Nuclear Reactor

Regulation.

[FR Doc. 01–32059 Filed 12–28–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–361 and 50–362]

In the Matter of Southern California

Edison Company (San Onofre Nuclear

Generating Station, Units 2 and 3);

Exemption

I

Southern California Edison Company

(the licensee) is the holder of Facility

Operating License Nos. NPF–10 and

NPF–15, which authorize operation of

the San Onofre Nuclear Generating

Station, Units 2 and 3, (SONGS) at

power levels not to exceed 3438

megawatts thermal. The facility consists

of two pressurized-water reactors

located at the licensee’s site in San

Diego County, California. The license

provides, among other things, that the

licensee is subject to all rules,

regulations, and orders of the Nuclear

Regulatory Commission (NRC, the

Commission) now or hereafter in effect.

II

Section IV.F.2.b of Appendix E to

Title 10 of the Code of Federal

Regulations (10 CFR) part 50 requires

each licensee at each site to conduct an

exercise of its onsite emergency

preparedness plan (EPP) every 2 years

and indicates the exercise may be

included in the full participation

biennial exercise of the offsite EPP

required by paragraph 2.c. Paragraph 2.c

requires the offsite EPP for each site to

be exercised biennially with full

participation by each offsite authority

having a role under the plan. During

such biennial full participation

exercises, the NRC evaluates onsite

emergency preparedness activities and

the Federal Emergency Management

Agency (FEMA) evaluates offsite

emergency preparedness activities. The

licensee successfully conducted an

NRC/FEMA-evaluated full participation

exercise for SONGS on October 27, 28,

and 29, 1999.

By letter dated September 18, 2001,

the licensee requested an exemption

from Sections IV.F.2.b and c of

Appendix E regarding the conduct of a

full participation onsite and offsite

exercise originally scheduled for

September 12, 2001. Specifically, the

licensee requested a one-time

exemption, in accordance with 10 CFR

50.12, ‘‘Specific exemptions,’’ from the

requirements in 10 CFR Part 50,

Appendix E, Items IV.F.2.b and c to

perform a biennial exercise of the onsite

and offsite EPPs with full participation

of each offsite authority having a role

under the plan (i.e., a full participation

EPP exercise), for SONGS. A full

participation onsite and offsite exercise

had been scheduled for SONGS for

September 12, 2001; however, as a

result of the national security events

occurring in the United States on

September 11, 2001, this exercise was

canceled. The licensee requested that

the biennial exercise for 2001 not be

conducted as required by Appendix E,

and the next full participation exercise

be conducted in 2003 and every two

years thereafter.

The licensee has provided the

Commission with copies of letters from

five local authorities that would

participate in the full participation EPP

exercise at SONGS, requesting relief

from FEMA to cancel the 2001 SONGS

full participation exercise. The letters

were to the Governor’s Office of

Emergency Services, State of California,

which in its letter dated December 13,