[Federal Register Volume 66, Number 63 (Monday, April 2, 2001)]
[Notices]
[Pages 17584-17586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7992]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-220 and 50-410]


Niagara Mohawk Power Corporation Nine Mile Point Nuclear Station, 
Unit Nos. 1 and 2; Notice of Consideration of Approval of Direct and 
Indirect Transfer of Facility Operating Licenses and Conforming 
Amendments, and Opportunity for a Hearing

    The U.S. Nuclear Regulatory Commission (the Commission) is 
considering the issuance of an order under 10 CFR 50.80 approving the 
direct transfer of Facility Operating Licenses Nos. DPR-63 and NPF-69 
for the Nine Mile Point Nuclear Station, Unit Nos. 1 and 2 (NMP-1, NMP-
2), to the extent the NMP-1 license is held by Niagara Mohawk Power 
Corporation

[[Page 17585]]

(NMPC) as exclusive owner and operator of NMP-1, and to the extent the 
NMP-2 license is held by NMPC as part-owner and exclusive operator of 
NMP-2, and New York State Electric & Gas Corporation (NYSEG), Rochester 
Gas and Electric Corporation (RG&E), and Central Hudson Gas & Electric 
Corporation (CHGEC) as part-owners of NMP-2. The remaining part-owner 
of NMP-2, Long Island Lighting Company (doing business as Long Island 
Power Authority), which has an undivided 18% ownership interest in NMP-
2, is not involved in the proposed transaction described herein, and 
accordingly will retain its ownership interest in and remain a licensee 
for NMP-2. The direct transfer of the NMP-1 and NMP-2 licenses would be 
to a new limited liability company, Nine Mile Point Nuclear Station, 
LLC (NMP LLC). NMP LLC will be an indirect subsidiary of Constellation 
Nuclear, LLC, which is presently a subsidiary of Constellation Energy 
Group, Inc. (CEG). The Commission is also considering approving 
associated indirect license transfers to the extent such would be 
effected by a realignment of the CEG organization involving the 
creation of a new holding company, currently referred to as New 
Controlled, or by Virgo Holdings, Inc. (Virgo), an indirect wholly 
owned subsidiary of The Goldman Sachs Group, Inc., acquiring up to a 
17.5% voting interest in New Controlled. The Commission is further 
considering amending the licenses for administrative purposes to 
reflect the proposed direct transfer. The facility is located in Oswego 
County, in the State of New York.
    According to a February 1, 2001, application (consisting of a 
proprietary and a non-proprietary version) filed by Constellation 
Nuclear, LLC, on behalf of NMP LLC, NMPC, NYSEG, RG&E, and CHGEC, which 
was supplemented by letters from Constellation Nuclear, LLC, dated 
March 1 and March 16, 2001, NMP LLC would assume title to NMP-1 
following approval of the proposed license transfer, and would assume 
the 82-percent ownership interest in NMP-2 currently held by NMPC, 
NYSEG, RG&E and CHGEC. In addition, NMP LLC would become responsible 
for the operation of both NMP-1 and NMP-2. The application states that 
NMP LLC will 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 will provide decommissioning 
funding assurance through the use of decommissioning trusts coupled 
with parent company guarantees.
    No physical changes to the facility or operational changes are 
being proposed in the application. The application states that upon 
closing, substantially all NMPC employees will become employees of NMP 
LLC.
    The application also states that Virgo may in the future exercise 
rights to acquire additional voting interests beyond 17.5% in New 
Controlled. The Commission is not considering at this time approving 
any indirect license transfers that may be associated with Virgo 
acquiring such additional voting interests.
    The proposed 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 transfer.
    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. The Commission will approve an application for the direct 
transfer of a license if the Commission determines that the proposed 
transferee is qualified to hold the license, and will approve an 
application for an indirect transfer if the Commission determines the 
underlying transaction effectuating the transfer will not affect the 
qualifications of the holder of the license, and in both cases if the 
transfer is otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission pursuant thereto.
    Before issuance of the proposed conforming license amendment, the 
Commission will have made findings required by the Atomic Energy Act of 
1954, as amended (the Act), and the Commission's regulations.
    As provided in 10 CFR 2.1315, unless otherwise determined by the 
Commission with regard to a specific application, the Commission has 
determined that any amendment to the license of a utilization facility 
which does no more than conform the license to reflect the transfer 
action involves no significant hazards consideration. No contrary 
determination has been made with respect to this specific license 
amendment application. In light of the generic determination reflected 
in 10 CFR 2.1315, no public comments with respect to significant 
hazards considerations are being solicited, notwithstanding the general 
comment procedures contained in 10 CFR 50.91.
    The filing of requests for hearing and petitions for leave to 
intervene, and written comments with regard to the license transfer 
application, are discussed below.
    By April 23, 2001, any person whose interest may be affected by the 
Commission's action on the application may request a hearing, and, if 
not the applicants, may petition for leave to intervene in a hearing 
proceeding on the Commission's action. Requests for a hearing and 
petitions for leave to intervene should be filed in accordance with the 
Commission's rules of practice set forth in subpart M, ``Public 
Notification, Availability of Documents and Records, Hearing Requests 
and Procedures for Hearings on License Transfer Applications,'' of 10 
CFR part 2. In particular, such requests and petitions must comply with 
the requirements set forth in 10 CFR 2.1306, and should address the 
considerations contained in 10 CFR 2.1308(a). Untimely requests and 
petitions may be denied, as provided in 10 CFR 2.1308(b), unless good 
cause for failure to file on time is established. In addition, an 
untimely request or petition should address the factors that the 
Commission will also consider, in reviewing untimely requests or 
petitions, set forth in 10 CFR 2.1308(b)(1)-(2).
    Requests for a hearing and petitions for leave to intervene should 
be served upon Jay E. Silberg, counsel for Constellation Nuclear, LLC, 
at Shaw Pittman, 2300 N Street, NW., Washington, DC 20037 (tel. 202-
663-8063; fax 202-663-8007; e-mail: [email protected]); Mark 
J. Wetterhahn, counsel for NMPC, at Winston & Strawn, 1400 L Street, 
NW., Washington, DC 20005 (tel. 202-371-5703; fax 202-371-5950; e-mail: 
[email protected]); Daniel F. Stenger, counsel for RG&E, at Foley 
and Lardner, 888 16th St., NW., #700, Washington, DC 20006 (tel. 202-
835-8185; fax 202-835-8136; e-mail: [email protected]); Mary A. 
Murphy, counsel for NYSEG, at LeBoeuf, Lamb, Greene & MacRae, L.L.P., 
1875 Connecticut Ave, N.W., Suite 1200, Washington, D.C. 20009 (tel. 
202-986-8021; fax 202-986-8102; e-mail: [email protected]); Robert J. 
Glasser and Bo Hong, counsel for CHGEC, at Gould & Wilkie, LLP, One 
Chase Manhattan Plaza, 58th Floor, New York, NY 10005 (tel: 212-344-
5680; fax 212-809-6890; e-mail: [email protected] and 
[email protected]); the General Counsel, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555 (e-mail address for filings regarding 
license transfer cases only: [email protected]); and the Secretary of the 
Commission,

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U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, 
Attention: Rulemakings and Adjudications Staff, in accordance with 10 
CFR 2.1313.
    The Commission will issue a notice or order granting or denying a 
hearing request or intervention petition, designating the issues for 
any hearing that will be held and designating the Presiding Officer. A 
notice granting a hearing will be published in the Federal Register and 
served on the parties to the hearing.
    As an alternative to requests for hearing and petitions to 
intervene, by May 2, 2001, persons may submit written comments 
regarding the license transfer application, as provided for in 10 CFR 
2.1305. The Commission will consider and, if appropriate, respond to 
these comments, but such comments will not otherwise constitute part of 
the decisional record. Comments should be submitted to the Secretary, 
U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, 
Attention: Rulemakings and Adjudications Staff, and should cite the 
publication date and page number of this Federal Register notice.
    For further details with respect to this action, see the 
application dated February 1, 2001, and supplements dated March 1 and 
March 16, 2001, 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 27th day of March 2001.

    For the Nuclear Regulatory Commission.
Peter S. Tam,
Senior Project Manager, Section 1, Project Directorate 1, Division of 
Licensing Project Management, Office of Nuclear Reactor Regulation.
[FR Doc. 01-7992 Filed 3-30-01; 8:45 am]
BILLING CODE 7590-01-P