[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Notices]
[Pages 3316-3317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1486]


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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-443]


North Atlantic Energy Service Corporation, et al., Seabrook 
Station, Unit No. 1; Environmental Assessment and Finding of No 
Significant Impact

    The U.S. Nuclear Regulatory Commission (the Commission) is 
considering issuance of an exemption for Facility Operating License No. 
NPF-86 issued to North Atlantic Energy Service Corporation (the 
licensee or North Atlantic) for operation of the Seabrook Station, Unit 
No. 1 (Seabrook) located in Rockingham County, New Hampshire. North 
Atlantic is authorized to act as agent for the eleven owners of the 
facility.

Environmental Assessment

Identification of the Proposed Action

    This Environmental Assessment addresses the potential environmental 
issues related to the proposed issuance of a temporary exemption from 
certain requirements of 10 CFR 50.75(e)(2). Specifically, the proposed 
exemption would allow Great Bay Power Corporation (Great Bay) 6 months 
from the date of issue, to obtain a surety bond or other allowable 
decommissioning funding assurance mechanism for non-electric utilities. 
Great Bay holds an undivided 12.1324 percent ownership interest in 
Seabrook.

The Need for the Proposed Action

    On May 8, 1996, North Atlantic submitted to the NRC a request on 
behalf of Great Bay for Commission consent to the indirect transfer of 
control of Great Bay's interest in the Seabrook Operating License 
through formation of a holding company. Additional information relating 
to this request was submitted on October 18, 1996, and December 9, 
1996. Approval of the application would allow Great Bay, through the 
formation of several corporate entities and a merger, to become a 
wholly-owned subsidiary of a new holding company, Great Bay Holdings 
Corporation. Such a restructuring would expand Great Bay's 
opportunities, thereby potentially improving Great Bay's financial 
strength, benefiting public health and safety. The indirect transfer of 
control of Great Bay's share of Seabrook is subject to NRC approval 
pursuant to 10 CFR 50.80.
    Great Bay was established in 1994 as a successor to EUA Power 
Company, which had filed for reorganization under Chapter 11 of the 
U.S. Bankruptcy Code. When the NRC staff approved the plan for Great 
Bay's emergence from bankruptcy in 1993, it believed that Great Bay 
would continue to be an electric utility based upon its status as such 
prior to bankruptcy and upon the expectation that the reorganized 
entity would be successful in obtaining long-term contracts for the 
sale of most of its share of power from Seabrook. However, Great Bay 
has been marketing most of its share of electricity from Seabrook on 
the spot wholesale market. The staff has not yet completed its review 
of the proposed transfer of control, but it appears that Great Bay does 
not now meet the definition of ``electric utility'' as provided in 10 
CFR 50.2, in that it does not appear to

[[Page 3317]]

recover the cost of the electricity it generates and/or distributes, 
either directly or indirectly, through rates established by a 
regulatory authority. If Great Bay is no longer an ``electric 
utility,'' as defined in 10 CFR 50.2, it does not meet the requirements 
of 10 CFR 50.75(e)(2) in that it does not have a surety bond or other 
surety method in place to provide additional assurance for 
decommissioning funding.
    Because of its status as an exempt wholesale generator, Great Bay 
is precluded from participating in opportunities in additional 
electricity markets under New Hampshire law. The proposed formation of 
a holding company would protect Great Bay's status as a wholesale 
electric generator and allow its management to develop opportunities in 
additional electricity markets through the holding company, thus 
potentially improving Great Bay's financial position, benefiting public 
health and safety.
    To allow the staff to act upon Great Bay's request for approval of 
indirect transfer of control of Great Bay, without further delaying the 
potential benefits that may result therefrom, and at the same time to 
afford Great Bay a reasonable opportunity to implement a suitable 
decommissioning funding assurance method required of a non-electric 
utility, the staff proposes to grant Great Bay a 6 month exemption from 
compliance with the provisions of 10 CFR 50.75(e)(2) pertaining to the 
additional surety arrangements for decommissioning funding assurance 
for non-electric utility licensees.

Environmental Impacts of the Proposed Action

    The Commission has evaluated the environmental impact of the 
proposed action and has determined that the probability or consequences 
of accidents would not be increased by the temporary exemption, and 
that post-accident radiological releases would not be greater than 
previously determined. Further, the Commission has determined that the 
temporary exemption would not affect routine radiological plant 
effluents and would not increase occupational radiological exposure. 
Accordingly, the Commission concludes that there are no significant 
radiological environmental impacts associated with the proposed action.
    With regard to potential nonradiological impacts, the temporary 
exemption would not affect nonradiological plant effluents and would 
have no other environmental impact. Therefore, the Commission concludes 
that there are no significant nonradiological environmental impacts 
associated with the proposed action.

Alternative to the Proposed Action

    Since the Commission concluded that there are no significant 
environmental effects that would result from the proposed action, any 
alternative with equal or greater environmental impacts need not be 
evaluated.
    The principal alternative would be to not issue the temporary 
exemption and, thereby, delay completion of the staff's review of the 
request for approval for indirect transfer of control until the 
necessary surety arrangement is in place. Delay would result in no 
change in current environmental impacts. The environmental impacts of 
the proposed action and the alternative action are identical.

Alternative Use of Resources

    This action does not involve the use of any resources not 
previously considered in the Final Environmental Statement for the 
Seabrook Station, Unit No. 1, dated March 1983.

Agencies and Persons Contacted

    In accordance with its stated policy, on January 15, 1997, the NRC 
staff consulted with the New Hampshire state official, Mr. George 
Iverson of the New Hampshire Emergency Management Agency regarding the 
environmental impact of the proposed action. On January 15, 1997, the 
NRC staff consulted with the Massachusetts state official, Mr. James 
Muckerheid of the Massachusetts Emergency Management Agency. The state 
officials had no comments.

Finding of No Significant Impact

    Based upon the environmental assessment, the Commission concludes 
that the proposed action will not have a significant effect on the 
quality of the human environment. Accordingly, the Commission has 
determined not to prepare an environmental impact statement for the 
proposed action.
    For further details with respect to the proposed action, see the 
licensee's letters dated May 8, 1996, October 18, 1996, and December 9, 
1996, which are available for public inspection at the Commission's 
Public Document Room, the Gelman Building, 2120 L Street, NW., 
Washington, DC, and at the local public document rooms located at the 
Local Public Document Room located at Exeter Public Library, Founders 
Park, Exeter, New Hampshire 03833.

    Dated at Rockville, Maryland, this 15th day of January 1997.
    For the Nuclear Regulatory Commission.
Albert W. De Agazio,
Senior Project Manager, Project Directorate I-1, Division of Reactor 
Projects--I/II, Office of Nuclear Reactor Regulation.
[FR Doc. 97-1486 Filed 1-21-97; 8:45 am]
BILLING CODE 7590-01-P