[Federal Register Volume 70, Number 91 (Thursday, May 12, 2005)]
[Notices]
[Pages 25114-25116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2347]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 72-45; EA-05-085]


In the Matter of Duke Energy Corporation; Catawba Nuclear 
Station; Independent Spent Fuel Storage Installation; Order Modifying 
License (Effective Immediately)

AGENCY: Nuclear Regulatory Commission.

ACTION: Issuance of Order for implementation of additional security 
measures associated with access authorization.

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FOR FURTHER INFORMATION CONTACT: Cynthia Barr, Project Manager, 
Licensing and Inspection Directorate, Spent Fuel Project Office, Office 
of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Rockville, MD 20852. Telephone: (301) 415-4015; fax number: 
(301) 415-8555; e-mail [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    Pursuant to 10 CFR 2.106, the Nuclear Regulatory Commission (NRC) 
is providing notice in the matter of Catawba Nuclear Station 
Independent Spent Fuel Storage Installation Order Modifying License 
(Effective Immediately).

II. Further Information

I

    Duke Energy Corporation (Duke Energy) holds a license issued by the 
U.S. Nuclear Regulatory Commission (NRC or the Commission) authorizing 
the operation of an Independent Spent Fuel Storage Installation (ISFSI) 
in accordance with the Atomic Energy Act of 1954 and Title 10 of the 
Code of Federal Regulations (10 CFR) Part 50 and 10 CFR Part 72. 
Commission regulations at 10 CFR 72.212(b)(5) and 10 CFR 73.55(h)(1) 
require Duke Energy to have a safeguards contingency plan to respond to 
threats of radiological sabotage and to protect the spent fuel against 
the threat of radiological sabotage.
    Inasmuch as an insider has an opportunity equal to or greater than 
any other person to commit radiological sabotage, the Commission has 
determined these measures to be prudent. This Order has been issued to 
all licensees who currently store spent fuel or have identified near-
term plans to store spent fuel in an ISFSI.

II

    On September 11, 2001, terrorists simultaneously attacked targets 
in New York, NY, and Washington, DC, utilizing large commercial 
aircraft as weapons. In response to the attacks and intelligence 
information subsequently obtained, the Commission issued a number of 
Safeguards and Threat Advisories to its licensees in order to 
strengthen licensees' capabilities and readiness to respond to a 
potential attack on a nuclear facility. On October 16, 2002, the 
Commission issued Orders to the licensees of operating ISFSIs to put 
the actions taken in response to the Advisories in the established 
regulatory framework and to implement additional security enhancements 
which emerged from the NRC's ongoing comprehensive review. The 
Commission has also communicated with other Federal, State, and local 
government agencies and industry representatives to discuss and 
evaluate the current threat environment in order to assess the adequacy 
of security measures at licensed facilities. In addition, the 
Commission has been conducting a comprehensive review of its safeguards 
and security programs and requirements.
    As a result of its consideration of current safeguards and security 
requirements, as well as a review of information provided by the 
intelligence community, the Commission has determined that certain 
additional security measures are required to address the current threat 
environment in a consistent manner throughout the nuclear ISFSI 
community. Therefore, the Commission is imposing requirements, as set 
forth in Attachment 1 \1\ of this Order, on all licensees of these 
facilities. These requirements, which supplement existing regulatory 
requirements, will provide the Commission with reasonable assurance 
that the public health and safety and common defense and security 
continue to be adequately protected in the current threat environment. 
These requirements will remain in effect until the Commission 
determines otherwise.
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    \1\ Attachment 1 contains SAFEGUARDS INFORMATION and will not be 
released to the public.
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    The Commission recognizes that licensees may have already initiated 
many of the measures set forth in Attachment 1 to this Order in 
response to previously issued advisories, the October 2002 Order, or on 
their own. It also recognizes that some measures may not be possible or 
necessary at some sites, or may need to be tailored to accommodate the 
specific

[[Page 25115]]

circumstances existing at the licensee's facility to achieve the 
intended objectives and avoid any unforeseen effect on the safe storage 
of spent fuel.
    Although the additional security measures implemented by licensees 
in response to the Safeguards and Threat Advisories have been adequate 
to provide reasonable assurance of adequate protection of public health 
and safety, the Commission concludes that these actions must be 
supplemented further because the current threat environment continues 
to persist. Therefore, it is appropriate to require certain additional 
security measures and these measures must be embodied in an Order, 
consistent with the established regulatory framework.
    In order to provide assurance that Duke Energy is implementing 
prudent measures to achieve a consistent level of protection to address 
the current threat environment, Duke Energy's general license issued 
pursuant to 10 CFR 72.210 shall be modified to include the requirements 
identified in Attachment 1 to this Order. In addition, pursuant to 10 
CFR 2.202, the Commission finds that in light of the common defense and 
security matters described above, the public health, safety, and 
interest require that this Order be immediately effective.

III

    Accordingly, pursuant to Sections 53, 103, 104, 161b, 161i, 161o, 
182, and 186 of the Atomic Energy Act of 1954, as amended, and the 
Commission's regulations in 10 CFR 2.202 and 10 CFR Parts 50, 72, and 
73, it is hereby ordered, effective immediately, that your general 
license is modified as follows:
    A. Duke Energy shall, notwithstanding the provisions of any 
Commission regulation or license to the contrary, comply with the 
requirements described in Attachment 1 to this Order except to the 
extent that a more stringent requirement is set forth in the Duke 
Energy's security plan. Duke Energy shall immediately start 
implementation of the requirements in Attachment 1 to the Order and 
shall complete implementation no later than October 31, 2005, with the 
exception of the additional security measures B.4, which shall be 
implemented no later than May 2, 2006, or the first day that spent fuel 
is initially placed in the ISFSI, whichever is later.
    B.1. Duke Energy shall, within twenty (20) days of the date of this 
Order, notify the Commission: (1) If it is unable to comply with any of 
the requirements described in Attachment 1, (2) if compliance with any 
of the requirements is unnecessary in their specific circumstances, or 
(3) if implementation of any of the requirements would cause Duke 
Energy to be in violation of the provisions of any Commission 
regulation or the facility license. The notification shall provide Duke 
Energy's justification for seeking relief from or variation of any 
specific requirement.
    2. If Duke Energy considers that implementation of any of the 
requirements described in Attachment 1 to this Order would adversely 
impact the safe storage of spent fuel, Duke Energy must notify the 
Commission, within twenty (20) days of this Order, of the adverse 
safety impact, the basis for its determination that the requirement has 
an adverse safety impact, and either a proposal for achieving the same 
objectives specified in the Attachment 1 requirements in question, or a 
schedule for modifying the facility to address the adverse safety 
condition. If neither approach is appropriate, Duke Energy must 
supplement its response to Condition B.1 of this Order to identify the 
condition as a requirement with which it cannot comply, with attendant 
justifications as required under Condition B.1.
    C.1. Duke Energy shall, within twenty (20) days of this Order, 
submit to the Commission a schedule for achieving compliance with each 
requirement described in Attachment 1.
    2. Duke Energy shall report to the Commission when they have 
achieved full compliance with the requirements described in Attachment 
1.
    D. Notwithstanding the provisions of 10 CFR 72.212(b)(5), all 
measures implemented or actions taken in response to this Order shall 
be maintained until the Commission determines otherwise.
    Duke Energy's response to Conditions B.1, B.2, C.1, and C.2, above 
shall be submitted in accordance with 10 CFR 72.4. In addition, 
submittals that contain Safeguards Information shall be properly marked 
and handled in accordance with 10 CFR 73.21.
    The Director, Office of Nuclear Material Safety and Safeguards, 
may, in writing, relax or rescind any of the above conditions upon 
demonstration by Duke Energy of good cause.

IV

    In accordance with 10 CFR 2.202, Duke Energy must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order, and may request a hearing on this Order, within twenty (20) days 
of the date of this Order. Where good cause is shown, consideration 
will be given to extending the time to request a hearing. A request for 
extension of time in which to submit an answer must be made in writing 
to the Director, Office of Nuclear Material Safety and Safeguards, and 
the Director, Office of Enforcement, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555, and include a statement of good cause 
for the extension. The answer may consent to this Order. Unless the 
answer consents to this Order, the answer shall, in writing and under 
oath or affirmation, specifically set forth the matters of fact and law 
on which the licensee or other person adversely affected relies and the 
reasons as to why the Order should not have been issued. Any answer or 
request for a hearing shall be submitted to the Secretary, Office of 
the Secretary of the Commission, U.S. Nuclear Regulatory Commission, 
ATTN: Rulemakings and Adjudications Staff, Washington, DC 20555. Copies 
also shall be sent to the Director, Office of Nuclear Material Safety 
and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 
20555; to the Director, Office of Enforcement at the same address; to 
the Assistant General Counsel for Materials Litigation and Enforcement 
at the same address, to the Regional Administrator for NRC Region II at 
61 Forsyth Street SW., Suite 23T85, Atlanta, GA 30303-8931; and to the 
licensee if the answer or hearing request is by a person other than the 
licensee. Because of possible disruptions in delivery of mail to United 
States Government offices, it is requested that requests for a hearing 
be transmitted to the Secretary of the Commission either by means of 
facsimile transmission to 301-415-1101 or by e-mail to 
[email protected] and also to the Office of General Counsel either 
by means of facsimile transmission to 301-415-3725 or by e-mail to 
[email protected]. If a person other than the Duke Energy requests 
a hearing, that person shall set forth with particularity the manner in 
which his/her interest is adversely affected by this Order and shall 
address the criteria set forth in 10 CFR 2.714(d).
    If a hearing is requested by Duke Energy or 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 Order should be 
sustained.
    Pursuant to 10 CFR 2.202(c)(2)(I), Duke Energy may, in addition to 
demanding a hearing at the time the answer is filed or sooner, move the 
presiding officer to set aside the immediate effectiveness of the Order 
on the grounds that the Order, including the need for immediate 
effectiveness, is

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not based on adequate evidence but on mere suspicion, unfounded 
allegations or error.
    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 III above shall be final twenty (20) days from the 
date of this Order without further order or proceedings. If an 
extension of time for requesting a hearing has been approved, the 
provisions specified in Section III shall be final when the extension 
expires, if a hearing request has not been received. An answer or a 
request for hearing shall not stay the immediate effectiveness of this 
Order.

    Dated this 5th day of May, 2005.

    For the Nuclear Regulatory Commission.
Margaret V. Federline,
Acting Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. E5-2347 Filed 5-11-05; 8:45 am]
BILLING CODE 7590-01-P