[Federal Register Volume 84, Number 123 (Wednesday, June 26, 2019)]
[Notices]
[Pages 30250-30252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13566]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-219 and 72-15; NRC-2019-0134]


In the Matter of Exelon Generation Company, LLC, Oyster Creek 
Environmental Protection, LLC, Holtec Decommissioning International, 
LLC, Oyster Creek Nuclear Generating Station

AGENCY: Nuclear Regulatory Commission.

ACTION: Direct transfer of license; order.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
order approving the direct transfer of Renewed Facility Operating 
License No. DPR-16 for Oyster Creek Nuclear Generating Station (Oyster 
Creek), and its general license for the Oyster Creek Independent Spent 
Fuel Storage Installation (ISFSI), from the currently licensed operator 
and licensed owner, Exelon Generating Company, LLC, to Oyster Creek 
Environmental Protection, LLC (OCEP), as owner, and to Holtec 
Decommissioning International, LLC (HDI), as operator. The NRC is also 
issuing a conforming amendment for the

[[Page 30251]]

facility operating license for administrative purposes to reflect the 
approved license transfer.
    The NRC confirmed that OCEP and HDI met the regulatory, legal, 
technical, and financial obligations necessary to qualify them as a 
transferee and determined that the transferees are qualified to be the 
holder of the license; and the transfer of the license is otherwise 
consistent with the applicable provisions of law, regulations, and 
orders issued by the Commission. The Order approving the direct 
transfer of the Oyster Creek license to OCEP and HDI became effective 
on June 20, 2019.

DATES: The Order was issued on June 20, 2019 and is effective for one 
year.

ADDRESSES: Please refer to Docket ID NRC-2019-0134 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this document 
using any of the following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2018-0216. Address 
questions about docket IDs in Regulations.gov to Jennifer Borges; 
telephone: 301-287-9127; email: [email protected]. For technical 
questions, contact the individual listed in the FOR FURTHER INFORMATION 
CONTACT section of this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS 
Search.'' For problems with ADAMS, please contact the NRC's Public 
Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or 
by email to [email protected]. The license transfer Order, the NRC 
safety evaluation supporting the staff's findings, and the conforming 
license amendment are available in ADAMS under Accession Nos. 
ML19095A458, ML19095A457, and ML19095A461, respectively.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room 01-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Amy Snyder, Office of Nuclear Material 
Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, 
DC 20555-0001; telephone: 301-415-6822, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 21st day of June 2019.

    For the Nuclear Regulatory Commission.
Christepher A. McKenney,
Acting Director, Division of Decommissioning, Uranium Recovery and 
Waste Programs, Office of Nuclear Material Safety and Safeguards.

Attachment--Order

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of Holtec Decommissioning International, LLC Oyster Creek 
Environmental Protection, Nuclear Generating Station LLC
Docket Nos. 50-219 and 72-15; License No. DPR-16 Oyster Creek

ORDER APPROVING THE TRANSFER OF LICENSE AND CONFORMING AMENDMENT

I.

    Exelon Generation Company, LLC (Exelon) is the holder of Renewed 
Facility Operating License No. DPR-16, for the Oyster Creek Nuclear 
Generating Station (Oyster Creek), and the general license for the 
Oyster Creek Independent Spent Fuel Storage Installation (ISFSI). 
Oyster Creek permanently ceased operations on September 17, 2018. 
Pursuant to Sections 50.82(a)(1)(i) and (a)(1)(ii) of Title 10 of the 
Code of Federal Regulations (10 CFR), by letter dated September 25, 
2018 (ADAMS Accession No. ML18268A258), Exelon certified to the NRC 
that it had permanently ceased operations at Oyster Creek and that all 
fuel had been permanently removed from the reactor. Therefore, pursuant 
to 10 CFR 50.82(a)(2), operations at Oyster Creek are no longer 
authorized under the 10 CFR part 50 license, and Exelon is licensed to 
possess, but not use or operate, Oyster Creek under Renewed Facility 
Operating License No. DPR-16, subject to the conditions specified 
therein. The Oyster Creek site is located approximately two miles south 
of Forked River, New Jersey.

II.

    By letter dated August 31, 2018 (Agencywide Documents Access and 
Management System (ADAMS) Accession No. ML18243A489), including 
proprietary financial information provided as Enclosure 2A, ``Asset 
Purchase and Sale Agreement'' (ADAMS Accession No. ML18243A490, non-
public pursuant to 10 CFR 2.390), Exelon, OCEP and HDI (together, 
``Applicants'') requested that the U.S. Nuclear Regulatory Commission 
(NRC) consent to the proposed direct transfer of the Oyster Creek 
Renewed Facility Operating License No. DPR-16 and the Oyster Creek 
ISFSI general license (collectively referred to as the facility) from 
Exelon to OCEP as the licensed owner and to HDI as the licensed 
operator for decommissioning. The direct transfer request is submitted 
to NRC for approval pursuant to Section 184 of the Atomic Energy Act of 
1954, as amended (AEA), ``Inalienability of Licenses,'' and Title 10 of 
the Code of Federal Regulations (10 CFR) 50.80, ``Transfer of 
licenses,'' 10 CFR 72.50, ``Transfer of licenses,'' and 10 CFR 50.90, 
``Application for amendment of license, construction permit, or early 
site permit.'' The applicants also requested that NRC approve a 
conforming administrative amendment to the facility license to reflect 
the proposed direct transfer.
    Following approval of the proposed direct transfer of control, 
OCEP, an indirect wholly-owned subsidiary of Holtec International 
(Holtec), would acquire Oyster Creek, including the ISFSI, from Exelon 
as an asset purchase. In addition, HDI, an indirect wholly-owned 
subsidiary of Holtec, will be the decommissioning operator of Oyster 
Creek with licensed responsibility for maintaining and decommissioning 
the facility. HDI's licensed activities will involve possessing and 
disposing of radioactive material, maintaining the facility in a safe 
condition (including handling, storing, controlling, and protecting the 
spent fuel), decommissioning and decontaminating the facility, and 
maintaining the ISFSI until it can be decommissioned, each in 
accordance with the License and NRC regulations.
    Upon closing of the proposed transaction, OCEP and HDI will assume 
licensed responsibility for Oyster Creek. OCEP will enter into a 
decommissioning operator services agreement with HDI, which will 
provide for HDI to act as OCEP's agent and for OCEP to pay HDI's costs 
of post-shutdown operations, including decommissioning costs and spent 
fuel management costs. OCEP will own the Oyster Creek facility, as well 
as its associated assets and real estate, and title to spent nuclear 
fuel. The applicable U.S. Department of Energy Standard Contract will 
be assigned to OCEP. The assets from the Oyster Creek Nuclear 
Decommissioning Trust (non-qualified and qualified) will be transferred 
to OCEP.
    Upon completion of the proposed license transfer, HDI would assume 
responsibility for compliance with the current licensing basis, 
including regulatory commitments that exist at the closing of the 
transaction between the

[[Page 30252]]

Applicants, and would implement any changes under applicable regulatory 
requirements and practices.
    Notice of NRC consideration of the license transfer application was 
published in the Federal Register (FR) on October 19, 2018 (83 FR 
53119) and included an opportunity to comment, request a hearing, and 
petition for leave to intervene. The comment period was re-opened on 
December 10, 2018 (83 FR 63544) for an additional 30-days. Two hearing 
requests were received. These requests can be found at ADAMS Accession 
Numbers ML18306A866 and ML18312A251. These hearing requests are 
currently pending before the Commission. Public comments were also 
received on this application for license transfer. They are summarized 
in the safety evaluation for this license transfer request.
    The staff notes that, by letter dated November 30, 2018 (ADAMS 
Accession No. ML18334A215), in support of the license transfer request, 
HDI submitted a request for exemptions, pursuant to 10 CFR 50.12, from 
certain requirements in 10 CFR 50.82(a)(8)(i)(A) and 10 CFR 
50.75(h)(1)(iv) to allow the use of a portion of the funds from Oyster 
Creek decommissioning trust funds (DTF) for management of spent fuel 
and site restoration activities. The submittal also requests an 
exemption from 10 CFR 50.75(h)(1)(iv) to allow Oyster Creek DTF 
disbursements for spent fuel management and site restoration activities 
to be made without prior notice, similar to withdrawals in accordance 
with 10 CFR 50.82(a)(8). The staff approved the exemption requests on 
June 20, 2019 (ADAMS Accession No. ML19113A204 (Pkg)). The exemption is 
being issued simultaneously with this Order.
    Pursuant to 10 CFR 50.80, no license for a production or 
utilization facility, or any right thereunder, shall be transferred, 
either voluntarily or involuntarily, directly or indirectly, through 
transfer of control of the license to any person, unless the Commission 
gives 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 HDI and OCEP are qualified to be the 
holders of the license, and that the direct transfer of the license, as 
described in the application, is otherwise consistent with applicable 
provisions of law, regulations, and orders issued by the Commission 
pursuant thereto, subject to the condition set forth below.
    Upon review of the application for a conforming amendment to the 
Oyster Creek license to reflect the direct transfer of the Oyster Creek 
license, the NRC staff determined the following:
    (1) The application for the proposed license amendment complies 
with the standards and requirements of the AEA, and the Commission's 
rules and regulations set forth in 10 CFR Chapter I.
    (2) There is reasonable assurance that the activities authorized by 
the proposed license amendment 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.
    (3) The issuance of the proposed license amendment will not be 
inimical to the common defense and security or to the health and safety 
of the public.
    (4) The issuance of the proposed license amendment is in accordance 
with 10 CFR part 51 of the Commission's regulations, and all applicable 
requirements have been satisfied.
    The findings set forth above are supported by the NRC safety 
evaluation dated June 20, 2019, which is available at ADAMS Accession 
No. ML19095A457.

III.

    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
AEA, 42 U.S.C. Sections 2201(b), 2201(i), 2201(o), and 2234; and 10 CFR 
50.80, 10 CFR 72.50, and 10 CFR 50.90, IT IS HEREBY ORDERED that the 
application for the direct transfer of the license, as described herein 
is approved for Oyster Creek and the ISFSI, subject to the following 
condition:

    Prior to the closing of the license transfer, OCEP and HDI shall 
provide the Directors of NRC's Office of Nuclear Material Safety and 
Safeguards (NMSS) and Office of Nuclear Reactor Regulation (NRR) 
satisfactory documentary evidence that they have obtained the 
appropriate amount of insurance required of a licensee under 10 CFR 
140.11(a)(4) and 10 CFR 50.54(w) of the Commission's regulations, 
consistent with the exemptions issued to Oyster Creek on June 12, 
2019.

    IT IS FURTHER ORDERED that, consistent with 10 CFR 2.1315(b), the 
license amendment that makes changes, as indicated in Enclosure 2 to 
the cover letter forwarding this Order, to conform the license to 
reflect the subject direct license transfer, is approved. The amendment 
shall be issued and made effective within 30 days of the date of when 
the proposed direct license transfer action is completed.
    IT IS FURTHER ORDERED that HDI and OCEP shall, at least 2 business 
days prior to closing, inform the Directors of NMSS and NRR in writing 
of the date of closing of the license transfer for Oyster Creek and the 
ISFSI. Should the transfer of the license not be completed within 1 
year of this Order's date of issuance, this Order shall become null and 
void; provided, however, that upon written application and for good 
cause shown, such date may be extended by order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the initial 
application dated August 31, 2018, and the associated NRC safety 
evaluations, which are available for public inspection at the 
Commission's Public Document Room (PDR), located at One White Flint 
North, 11555 Rockville Pike (first floor), Rockville, Maryland. 
Publicly available documents are accessible electronically through 
ADAMS in the NRC Library at http://www.nrc.gov/reading-rm/adams.html. 
Persons who encounter problems with ADAMS should contact the NRC's PDR 
reference staff by telephone at 1-800-397-4209 or 301-415-4737 or by 
email to [email protected].

    Dated at Rockville, Maryland this 20 day of June 2019.

    FOR THE NUCLEAR REGULATORY COMMISSION

/RA/
John W. Lubinski,
Director Office of Nuclear Material Safety and Safeguards.

[FR Doc. 2019-13566 Filed 6-25-19; 8:45 am]
 BILLING CODE 7590-01-P