[Federal Register Volume 66, Number 249 (Friday, December 28, 2001)]
[Notices]
[Pages 67326-67328]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31932]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 50-219]


AmerGen Energy Company, LLC (Oyster Creek Nuclear Generating 
Station); Exemption

I

    AmerGen Energy Company (AmerGen or the licensee) is the holder of 
Facility Operating License No. DPR-16, which authorizes operation of 
the Oyster Creek Nuclear Generating Station at power levels not to 
exceed 1930 megawatts thermal. The facility consists of one boiling-
water reactor located at the licensee's site in Ocean County, New 
Jersey. The license provides, among other things, that the licensee is 
subject to all rules, regulations, and orders of the U.S. Nuclear 
Regulatory Commission (NRC or 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 plan every 2 years and 
indicates the exercise may be included in the biennial exercise 
required by paragraph 2.c. Paragraph 2.c requires offsite plans for 
each site to be exercised biennially with participation by each offsite 
authority having a role under the plan.
    During such biennial exercises, the NRC evaluates onsite emergency 
preparedness activities and the Federal Emergency Management Agency 
(FEMA) evaluates offsite emergency preparedness activities. The 
licensee successfully conducted a full-participation exercise for 
Oyster Creek on October 5, 1999. By letter dated October 8, 2001, the 
licensee requested an exemption from Section IV.F.2.c of Appendix E 
regarding the conduct of a full-participation exercise originally 
scheduled for October 16, 2001. Specifically, the licensee proposed 
rescheduling the exercise originally scheduled for October 16, 2001, to 
sometime before the end of 2002. However, the next exercise will 
continue to be scheduled biennially from 2001.
    AmerGen is among several licensees requesting exercise exemptions 
in the wake of the National Emergency of September 11, 2001. It is 
recognized that it was not appropriate to conduct an exercise during 
the period of disruption and heightened security directly after the 
National Emergency. The State of New Jersey was initially involved with 
the recovery response to the National Emergency and the Federal 
Emergency Management Agency (FEMA) Region II is deeply involved with 
recovery efforts in New York City. Further, New Jersey has been deeply 
involved with the response to mail-based terrorism in the weeks that 
followed the National Emergency. Considering the extraordinary 
circumstances, a schedular exemption was expected and is acceptable. 
However, in this period of heightened security concerns regarding 
nuclear plant vulnerability, it is prudent to conduct the full-
participation exercise as soon as practical to demonstrate (and 
maintain) readiness.
    The licensee is faced with a difficult task to coordinate and 
schedule an exercise that involves multiple governmental agencies at 
the Federal, State, and local level. Many local response organizations 
depend on volunteers. In order to accommodate this difficult task, the 
NRC has allowed licensees to schedule full-participation exercises at 
any time during the calendar biennium. This gives the licensee the 
flexibility to schedule the exercise within a 12- to 36-month

[[Page 67327]]

window and still meet the biennial requirement specified in the 
regulations.
    The licensee requested relief from section IV.F.2.c of Appendix E 
to 10 CFR part 50. Although the intent of the request is clear, i.e., 
the need to postpone the biennial exercise, the citation of regulations 
to accomplish that intent may not be complete. Section IV.F.2.b of 
Appendix E to 10 CFR part 50 may also be cited for completeness. The 
Commission's analysis encompassed the technical issues necessary to 
grant a schedular exemption from sections IV.F.2.b and c for the 
conduct of the biennial exercise.
    The Commission, pursuant to 10 CFR 50.12(a)(1), may grant 
exemptions from the requirements of 10 CFR part 50 that are authorized 
by law, will not present an undue risk to public health and safety, and 
are consistent with the common defense and security. The Commission, 
however, pursuant to 10 CFR 50.12(a)(2), will not consider granting an 
exemption unless special circumstances are present. Under 10 CFR 
50.12(a)(2)(v), special circumstances are present whenever the 
exemption would provide only temporary relief from the applicable 
regulation and the licensee or applicant has made good faith efforts to 
comply with the regulation.

III

    The licensee requests a one-time change in the schedule for the 
next biennial exercise for Oyster Creek. Subsequent biennial exercises 
for Oyster Creek would be scheduled at no greater than 2-year intervals 
in accordance with 10 CFR part 50, Appendix E, section IV.F.2.c. 
Accordingly, the exemption would provide only temporary relief from 
that regulation, in that the next biennial exercise is scheduled to 
take place in 2003.
    As indicated in the licensee's request for an exemption of October 
8, 2001, the licensee had originally scheduled a full-participation 
exercise for October 16, 2001. As further set forth in that letter, 
however, AmerGen requested a schedular exemption as a result of the 
national security threat in the United States, and the response, 
recovery, and other activities associated with the September 11, 2001, 
attacks on the World Trade Center. AmerGen is among several licensees 
requesting exercise exemptions in the wake of the national emergency of 
September 11, 2001. It is recognized that it was not appropriate to 
conduct an exercise during the period of disruption and heightened 
security directly after the national emergency. However, in this period 
of continued heightened security concerns regarding nuclear plant 
vulnerability, it is prudent to conduct the exercise as soon as 
practical to demonstrate and maintain readiness.
    The staff completed its evaluation of the licensee's request for an 
exemption. The State of New Jersey was initially involved with the 
recovery response to the national emergency and the Federal Emergency 
Management Agency (FEMA) Region II is deeply involved with recovery 
efforts in New York City. Further, New Jersey has been deeply involved 
with the response to mail-based terrorism in the weeks that followed 
the national emergency. The staff considered the schedule and resource 
issues resulting from the national emergency, and the fact that AmerGen 
conducted the previous Oyster Creek full participation exercise on 
October 5, 1999.
    Oyster Creek successfully conducted a full-participation exercise 
in October 5, 1999, which was evaluated by the NRC (Inspection Report 
No. 50-219/99-06) and FEMA (Final Exercise Report Oyster Creek December 
29, 2000). The licensee was scheduled to conduct a biennial full 
participation exercise on October 16, 2001. The requested exemption is 
to postpone that exercise and conduct it during 2002. The interval 
between biennial exercises could be as long as 39 months, if the 
exercise were conducted in December of 2002. This is a bit outside the 
normal parameters of exercise conduct, in which a period of 36 months 
is acceptable, as long as the sequential exercises are conducted within 
the calender biennium. However, given the circumstances and the fact 
that other 2001 exercises in NRC Region I will be rescheduled for 2002, 
this time frame is acceptable. To reschedule this exercise, AmerGen 
will have to coordinate with local and State supporting agencies as 
well as NRC Region I and FEMA Region II. This effort will be 
complicated by the fact that NRC and FEMA will have to support the 
normally scheduled exercises in addition to the rescheduled exercises 
during 2002. The increased flexibility requested by the licensee may be 
necessary for scheduling of Federal resources more so than local or 
utility resources.
    The licensee provided a description of recently completed drills 
and training evolutions, as well as the planned training and drill 
schedule for the next year. The previous Oyster Creek full-
participation exercise was conducted on October 5, 1999. The results of 
this exercise determined that the overall performance of the emergency 
response organization demonstrated that onsite emergency plans are 
adequate and that the organization is capable of implementing these 
plans (reference NRC Inspection Report No. 50-219/99-06.) One exercise 
weakness involving technical support center communications was 
identified and the licensee stated that prompt corrective actions were 
implemented. The State of New Jersey and local governments fully 
participated in the October 5, 1999 exercise. The licensee stated that 
corrective actions are complete for the only area requiring corrective 
action, which involved a facsimile machine problem.
    Subsequent to the October 5, 1999 full participation exercise, 
Oyster Creek conducted emergency response drills on March 29, 2000, May 
11, 2000, May 17, 2000, May 18, 2000, and an annual exercise on 
September 20, 2000. The May 11, 17, and 18, 2000, drills were 
specifically conducted as proficiency enhancing drills for new 
emergency response team personnel. The September 20, 2000, annual 
exercise included active participation by the New Jersey Office of 
Emergency Management. These drills and the self-evaluated annual 
exercise satisfy the drill requirements of 10 CFR part 50, Appendix E, 
section IV.F.2.b. Overall performance throughout these drills and 
exercises demonstrated successful implementation of the Emergency Plan 
and its Implementing Procedures. AmerGen stated that issues identified 
during these drills, exercises, and associated critiques are being 
resolved under the Oyster Creek corrective action program. AmerGen has 
determined that there will be no decrease in safety as a result of this 
exemption. Additionally, Oyster Creek conducted a training drill on 
July 11, 2001, a pre-exercise drill on September 4, 2001, and an 
additional pre-exercise drill on September 24, 2001. The State of New 
Jersey and local governments have maintained radiological emergency 
preparedness by participating in the September 4, 2001, drill. Offsite 
agencies have completed, without issue, all of the out-of-sequence 
exercise demonstrations, encompassing FEMA Objective Nos. 15, 16, 17, 
18, 19, 20, 21, and 22, in conjunction with the previously planned 
October 16, 2001, full-participation exercise. Completion of these 
exercise demonstrations provides added assurance of emergency response 
preparedness.
    AmerGen has stated that, on a continuing basis, measures will be 
taken to maintain emergency preparedness at Oyster Creek. The existing 
training and drill schedule currently in place for emergency response 
activities will remain in place and adjusted as necessary to ensure the 
readiness of

[[Page 67328]]

both onsite and offsite emergency response personnel. This includes 
annual training, requalification, and participation drills for onsite 
emergency responders. It appears that these measures will maintain an 
adequate level of emergency preparedness during this period.
    Licensee representatives meet routinely with State and local 
emergency management and have discussed rescheduling of the biennial 
exercise with these groups. K. Hayden, Captain, Acting Commanding 
Officer of the New Jersey State Police Emergency Management Section, 
has submitted a similar exemption request to FEMA RII.
    The national emergency of September 11, 2001, rendered the conduct 
of a nuclear power plant exercise in the previously scheduled time 
frame inappropriate. Application of the applicable regulation would not 
serve the underlying purpose of the rule, in that diversion of public 
agency attention from recovery from the national emergency and 
management of the mail based terrorist events in New Jersey would not 
contribute to public health and safety. Postponement of exercise 
conduct is a benefit to public health and safety that compensates for 
any decrease in safety that may result. Additionally, the licensees 
drill program includes offsite agency participation and is a 
compensating measure contributing to justification of the exemption. 
The exemption only provides temporary relief from the applicable 
regulation, in that AmerGen has committed to conduct the exercise 
during the next calendar year (2002). AmerGen made a good faith effort 
to conduct the exercise and comply with regulations. The circumstances 
dictating the request for exemption are beyond the licensee's control. 
The regulations of this part do allow for the postponement of exercises 
and the regulations have been invoked for appropriate circumstances. 
This being the case, the occasional need to postpone exercises was 
considered as a potential circumstance. The NRC staff has determined 
that conduct of the full-participation exercise as early as practical 
in 2002 is prudent even though the licensee is expected to conduct 
another full-participation exercise in 2003. Accordingly, the licensee 
made a good faith effort to comply with the schedule requirements of 
Appendix E for full-participation exercises. The staff finds the 
request acceptable.

IV

    Accordingly, the Commission has determined that, pursuant to 10 CFR 
part 50, Appendix E, this exemption is authorized by law, will not 
present an undue risk to the public health and safety, and is 
consistent with the common defense and security. Further, the 
Commission has determined, pursuant to 10 CFR 50.12(a), that special 
circumstances of 10 CFR 50.12(a)(v) are applicable in that the 
exemption would provide only temporary relief from the applicable 
regulation and the licensee has made good faith efforts to comply with 
the regulation. Therefore, the Commission hereby grants AmerGen a one-
time schedular exemption from the requirements to conduct an exercise 
of its onsite and offsite (with full-participation by each offsite 
authority having a role under the plan) emergency plans every 2 years 
as required by sections IV.F.2.b and c of Appendix E to 10 CFR part 50. 
This conclusion is based on AmerGen's commitment to conduct the 
postponed exercise in 2002. The staff recommends that AmerGen schedule 
the exercise as early as practical in 2002, but the exemption is not 
predicated on AmerGen following this recommendation.
    Pursuant to 10 CFR 51.32, the Commission has determined that the 
granting of this exemption will have no significant impact on the 
quality of the human environment (66 FR 65520).
    This exemption is effective upon issuance.

    Dated at Rockville, Maryland, this 21st day of December 2001.

    For the Nuclear Regulatory Commission.
Ledyard B. Marsh,
Acting Director, Division of Licensing Project Management, Office of 
Nuclear Reactor Regulation.
[FR Doc. 01-31932 Filed 12-27-01; 8:45 am]
BILLING CODE 7590-01-P