67332 Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices

indicated in Enclosure 2 to the cover

letter forwarding this Order, to conform

the licenses to reflect the subject

transfer of operating authority are

approved. The amendments 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 initial application dated

July 10, 2001, the supplemental letters

dated October 31, November 1 and 26,

and December 10, 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 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/reading-rm/adams.html.

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. 01–31926 Filed 12–27–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket No. 50–369, Docket No. 50–370,

License No. NPF–9, and License No. NPF–

17]

Duke Energy Corporation (McGuire

Nuclear Station, Units 1 and 2); Order

Approving Transfer of Operating

Authority and Conforming

Amendments

Duke Energy Corporation (Duke

Energy, or DEC), is the holder of Facility

Operating Licenses Nos. NPF–9 and

NPF–17, which authorize operation of

the McGuire Nuclear Station, Units 1

and 2 (McGuire or the facility). The

McGuire Nuclear Station is located in

Mecklenburg County, North Carolina.

By application dated July 10, 2001, as

supplemented by letters dated October

31, November 1 and 26, and December

10, 2001, (collectively referred to herein

as ‘‘the application’’ unless otherwise

indicated), the Commission was

informed that DEC, owner of the facility,

proposes to enter into an Operation and

Maintenance Services Agreement with

Duke Energy Nuclear, LLC (Duke

Nuclear), and transfer operating

authority under the licenses to Duke

Nuclear. Under the proposed

transaction, Duke Nuclear, which will

be a wholly owned indirect subsidiary

of DEC, will become a new licensee,

exclusively authorized to operate

McGuire in accordance with the terms

and conditions of the licenses. The

transaction involves no change in

facility ownership. Duke Nuclear will

not own any portion of the facility.

DEC requested approval of the

proposed transfer of operating authority

under the McGuire licenses to Duke

Nuclear pursuant to 10 CFR 50.80. The

application also requested approval of

conforming amendments pursuant to 10

CFR 50.90 to reflect the transfer. The

proposed amendments would add Duke

Nuclear to the licenses and reflect that

Duke Nuclear is exclusively authorized

to operate McGuire. Duke Nuclear will

also become a general licensee for

storage of spent fuel in certified dry

casks at McGuire pursuant to 10 CFR

72.210.

Notice of the application for approval

and an opportunity for a hearing was

published in the Federal Register on

September 25, 2001 (66 FR 49048). 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. Upon review

of the information in the application,

and other information before the

Commission, and relying upon the

representations and agreements

contained in the application, the NRC

staff has determined that Duke Nuclear

is qualified to hold the operating

authority under the licenses, and that

the transfer of the operating authority

under the licenses to Duke Nuclear 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

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 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

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 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 foregoing findings are

supported by a safety evaluation dated

December 20, 2001.

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 licenses, as described herein, to

Duke Nuclear is approved, subject to the

following conditions:

(1) Duke Nuclear shall, prior to

completion of the transfer of operating

authority for McGuire, provide the

Director of the Office of Nuclear Reactor

Regulation satisfactory documentary

evidence that Duke Nuclear has

obtained the appropriate amount of

insurance required of licensees under 10

CFR part 140 of the Commission’s

regulations.

(2) After receipt of all required

regulatory approvals of the transfer of

operating authority to Duke Nuclear,

DEC and Duke Nuclear 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 2 business days prior to the date of

closing. If the transfer is 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

transfer of operating authority are

approved. The amendments 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 initial application dated

July 10, 2001, the supplemental letters

dated October 31, November 1 and 26,

and December 10, 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 from

the Agencywide Documents Access and

Management Systems (ADAMS) Public

Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices 67333

Electronic Reading Room on the Internet

at the NRC Web site, http://

www.nrc.gov/reading-rm/adams.html.

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. 01–31927 Filed 12–27–01; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–352 and 50–353]

Exelon Generation Company, LLC,

Limerick Generating Station, Units 1

and 2; Exemption

1.0 Background

Exelon Generation Company, LLC

(Exelon or the licensee), is the holder of

Facility Operating Licenses Nos. NPF–

39 and NPF–85, which authorize

operation of the Limerick Generating

Station (LGS), Units 1 and 2. The

licenses provide, among other things,

that the facility is subject to all rules,

regulations, and orders of the U.S.

Nuclear Regulatory Commission (NRC,

the Commission) now or hereafter in

effect.

The facility consists of two boilingwater reactors located at the licensee’s

site in Montgomery County,

Pennsylvania.

2.0 Request/Action

Title 10 of the Code of Federal

Regulations (10 CFR), part 50, Appendix

E, Section IV.F.2.b requires each

licensee at each site to conduct an

exercise of its onsite emergency plan

every two years and indicates the

exercise may be included in the fullparticipation biennial exercise required

by paragraph 2.c. of the same section. In

addition, licensees are to take actions

necessary to ensure that adequate

emergency response capabilities are

maintained during the interval between

biennial exercises by conducting drills.

Paragraph 2.c. requires offsite plans for

each site to be exercised biennially with

full participation by each offsite

authority having a role under the plan.

Normally during such biennial fullparticipation exercises, the NRC

evaluates onsite, and the Federal

Emergency Management Agency

(FEMA) evaluates offsite, emergency

preparedness activities.

By letter dated October 16, 2001,

Exelon requested an exemption from the

requirements of 10 CFR part 50,

Appendix E, Sections IV.F.2.c, regarding

the conduct of a full-participation

exercise at LGS. The exemption would

allow the licensee to postpone the

biennial full-participation exercise up to

the end of 2002. However, the next fullparticipation exercise will continue to

be scheduled biennially from 2001.

Exelon 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 after the

national emergency. The State of

Pennsylvania was initially involved

with the recovery response to the

national emergency and continues to

respond to heightened security needs.

Considering the extraordinary

circumstances, a schedular exemption 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 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 window and

still meet the biennial requirement

specified in the regulations.

It should be noted that the licensee

requested relief from 10 CFR part 50,

appendix E, section IV.F.2.c. While the

intent of the request is clear, the NRC

staff determined that a schedular

exemption from the onsite exercise

requirements of 10 CFR part 50,

appendix E, section IV.F.2. b, was also

necessary. The following evaluation

addresses the technical issues necessary

to grant a schedular exemption from the

requirements of 10 CFR part 50,

appendix E, sections IV.F.2.b and c, to

conduct an evaluated biennial exercise.

3.0 Discussion

Pursuant to 10 CFR 50.12, the

Commission may, upon application by

any interested person or upon its own

initiative, grant exemptions from the

requirements of 10 CFR Part 50 when (1)

the exemptions are authorized by law,

will not present an undue risk to public

health or safety, and are consistent with

the common defense and security; and

(2) when 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.

The licensee was scheduled to

conduct a biennial full-participation

exercise on November 1, 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. However, the licensee stated that

the rescheduled exercise is expected to

take place in the first or second quarter

of 2002. If the licensee does conduct the

exercise within the second quarter of

2002, the period between exercises

would be about 33 months and within

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 that other 2001 exercises in NRC

Region I will be rescheduled into 2002,

the licensee may have difficulty

finalizing the schedule by the end of the

second quarter. To reschedule this

exercise, the licensee will have to

coordinate with local and State

supporting agencies as well as NRC

Region I and FEMA Region III. 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. Increased

flexibility may be necessary for

scheduling of Federal resources more so

than local or utility resources. This

being the case, a schedular exemption

for conduct of the exercise within

calendar year 2002 is appropriate, with

the understanding that the licensee will

conduct the exercise as soon as

practicable.

LGS successfully conducted a fullparticipation exercise on September 14,

1999, which was evaluated by the NRC

(Inspection Report No. 50–352;353/99–

06) and FEMA (Final Exercise Report

LGS 03/01/00.) 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. No violations

of NRC requirements or exercise

weaknesses were identified and the

licensee stated that performance issues

identified in the critique were entered

into the corrective action process and

addressed.

The licensee stated that subsequent to

the September 14, 1999, fullVerDate 11<MAY>2000 21:36 Dec 27, 2001 Jkt 197001 PO 00000 Frm 00166 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM pfrm04 PsN: 28DEN1