[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Notices]
[Pages 45176-45178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18506]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-293 and 72-1044; NRC-2018-0279]


In the Matter of Entergy Nuclear Generation Company, Entergy 
Nuclear Operations, Inc., Holtec Pilgrim, LLC, Holtec Decommissioning 
International, LLC, and Pilgrim Nuclear Power Station

AGENCY: Nuclear Regulatory Commission.

ACTION: Direct and indirect 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-35 for the Pilgrim Nuclear Power Station (Pilgrim), and 
its general license for the Pilgrim Independent Spent Fuel Storage 
Installation, from the currently licensed operator, Entergy Nuclear 
Operations, Inc. (ENOI), to Holtec Decommissioning International, LLC 
(HDI). This Order also approves the indirect transfer of control of 
Entergy Nuclear Generation Company's (ENGC) ownership interests in the 
facility to Holtec International (Holtec). The NRC is also issuing a 
conforming amendment for the facility operating license for 
administrative purposes to reflect the direct transfer of the license 
from ENOI to HDI and the planned name change for ENGC, from ENGC to 
Holtec Pilgrim, LLC (Holtec Pilgrim).

DATES: The Order was issued on August 22, 2019, and is effective for 
one year.

ADDRESSES: Please refer to Docket ID NRC-2018-0279 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-2018-0279. Address 
questions about NRC 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 Package Accession No. 
ML19170A147.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Scott P. Wall, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001; telephone: 301-415-2855, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 22nd day of August, 2019.

    For the Nuclear Regulatory Commission.
Scott P. Wall,
Senior Project Manager, Plant Licensing Branch III, Division of 
Operator Reactor Licensing, Office of Nuclear Reactor Regulation.

Attachment--

Order Approving the Direct and Indirect Transfer of Licenses.

NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-293 and 72-1044; NRC-2018-0279]

In the Matter of Entergy Nuclear Generation Company and Entergy Nuclear 
Operations, Inc. Pilgrim Nuclear Power Station

ORDER APPROVING DIRECT AND INDIRECT TRANSFER OF LICENSE AND CONFORMING 
AMENDMENT

I.
    Entergy Nuclear Operations, Inc. (ENOI) and Entergy Nuclear 
Generation Company (ENGC) are the holders of Renewed Facility Operating 
License No. DPR[dash]35, for the Pilgrim Nuclear Power Station 
(Pilgrim), and the general license for the Pilgrim Independent Spent 
Fuel Storage Installation (ISFSI). Pilgrim permanently ceased 
operations on May 31, 2019. 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 June 10, 2019 (Agencywide Documents Access and Management 
System (ADAMS) Accession No. ML19161A033), ENOI certified to the U.S. 
Nuclear Regulatory Commission (NRC) that it had permanently ceased 
operations at Pilgrim and that all fuel had been permanently removed 
from the reactor. Therefore, pursuant to 10 CFR 50.82(a)(2), operations 
at Pilgrim are no longer authorized under the license issued under 10 
CFR part 50, ``Domestic Licensing of Production and Utilization 
Facilities,'' and ENOI and ENGC are licensed to possess, but not use or 
operate, Pilgrim under Renewed Facility Operating License No. DPR-35, 
subject to the conditions specified therein. The Pilgrim site is 
located in the town of Plymouth, Massachusetts, in Plymouth County on 
Cape Cod Bay.
II.
    By letter dated November 16, 2018 (ADAMS Accession No. 
ML18320A031), and as supplemented by letters dated November 16, 2018, 
April 17, 2019, and July 29, 2019 (ADAMS Accession Nos. ML18320A040, 
ML19109A177, and ML19210E470, respectively), ENOI, on behalf of itself 
and ENGC (to be known as Holtec Pilgrim, LLC), Holtec International 
(Holtec), and Holtec Decommissioning International, LLC (HDI) 
(together, the Applicants), requested that the NRC consent to the 
proposed direct and indirect transfer of the Pilgrim Renewed Facility 
Operating License No. DPR-35 and the general license for the Pilgrim 
ISFSI (collectively referred to as the facility). Specifically, the 
Applicants requested

[[Page 45177]]

that the NRC consent to the direct transfer of ENOI's currently 
licensed authority (licensed operator for decommissioning) to HDI. In 
addition, the Applicants requested the indirect transfer of control of 
ENGC's ownership interests in the facility licenses to Holtec. The 
Applicants also requested that the NRC approve a conforming 
administrative amendment to the facility licenses to reflect the 
proposed direct transfer of the license from ENOI to HDI, as well as a 
planned name change from ENGC to Holtec Pilgrim. The Applicants 
submitted these direct and indirect transfer requests to the NRC for 
approval under Section 184, ``Inalienability of Licenses,'' of the 
Atomic Energy Act of 1954, as amended (AEA); 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.''
    ENOI and ENGC intend to transfer the licensed possession, 
maintenance, and decommissioning authorities to HDI to implement 
expedited decommissioning at Pilgrim. Following approval and 
implementation of the proposed direct transfer of control of the 
license, HDI would assume licensed responsibility for Pilgrim through 
the direct transfer of ENOI's responsibility for licensed activities at 
Pilgrim to HDI. If the proposed indirect transfer of control is 
approved, ENGC would change its name to Holtec Pilgrim, LLC (Holtec 
Pilgrim), but the same legal entity would continue to exist before and 
after the proposed transfer. Holtec Pilgrim would also enter into an 
operating agreement with HDI, which provides for HDI to act as Holtec 
Pilgrim's agent and for HDI to pay Holtec Pilgrim's costs of operation, 
including all decommissioning costs. Holtec Pilgrim would own the 
Pilgrim facility as well as its associated assets and real estate, 
including its nuclear decommissioning trust fund, title to spent 
nuclear fuel, and rights pursuant to the terms of its Standard Contract 
for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste 
with the U.S. Department of Energy. Upon 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 Applicants, and would implement 
any changes under applicable regulatory requirements and practices. 
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.
    The NRC published the notice of NRC consideration of the license 
transfer application in the Federal Register (FR) on January 31, 2019 
(84 FR 816), and included an opportunity to comment, request a hearing, 
and petition for leave to intervene. On February 20, 2019 (ADAMS 
Accession No. ML19051A114), the Commonwealth of Massachusetts filed a 
request for a hearing and petition for leave to intervene, submitting 
two contentions challenging the proposed license transfer. On February 
20, 2019 (ADAMS Accession No. ML19051A019), Pilgrim Watch also filed a 
request for a hearing and petition for leave to intervene with two 
contentions challenging the proposed license transfer. On April 24, 
2019 (ADAMS Accession No. ML19114A519), the Commonwealth of 
Massachusetts filed a motion to supplement its motion to intervene and 
request for hearing with new information. On April 26, 2019 (ADAMS 
Accession No. ML19116A162) and May 9, 2019 (ADAMS Accession No. 
ML19129A473), Pilgrim Watch filed motions to supplement its motion to 
intervene and request for hearing with new information. On July 16, 
2019 (ADAMS Accession No. ML19197A330), Pilgrim Watch submitted a 
motion to file a new contention. On August 1, 2019 (ADAMS Accession No. 
ML19213A313), the Commonwealth of Massachusetts filed a motion to stay 
the license transfer proceeding for 90 days to permit the completion of 
settlement negotiations. These requests are currently pending before 
the Commission. The NRC also received public comments on this 
application for license transfer, which are summarized in the safety 
evaluation for this license transfer request.
    The NRC staff notes, in Enclosure 2 of the application dated 
November 16, 2018, in support of the license transfer request, that the 
Applicants submitted a request for an exemption to 10 CFR 
50.82(a)(8)(i)(A) to allow Holtec Pilgrim and HDI to make withdrawals 
from the Pilgrim decommissioning trust fund for spent fuel management 
and site restoration activities. The staff approved the exemption 
request on August 22, 2019 (ADAMS Accession No. ML19192A083). The NRC 
is issuing the exemption to Holtec Pilgrim and HDI 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 Holtec Pilgrim and HDI are qualified 
to be the holders of the licenses, and that the direct and indirect 
transfer of the licenses, as described in the application, is otherwise 
consistent with the 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 
Pilgrim license to reflect the direct and indirect transfer of the 
Pilgrim licenses, the NRC staff determined the following:
    (1) The application for the proposed license amendment complies 
with the standards and requirements of the Atomic Energy Act of 1954, 
as amended, and the Commission's rules and regulations set forth in 10 
CFR Chapter I, ``Nuclear Regulatory Commission.''
    (2) There is reasonable assurance that the activities authorized by 
the proposed license amendment can be conducted without endangering 
public health and safety 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 public health and 
safety.
    (4) The issuance of the proposed license amendment is in accordance 
with 10 CFR part 51, ``Environmental Protection Regulations for 
Domestic Licensing and Related Regulatory Functions,'' of the 
Commission's regulations, and all applicable requirements have been 
satisfied.
    The findings set forth above are supported by an NRC safety 
evaluation dated August 22, 2019, which is available at ADAMS Accession 
No. ML19170A250.
III.
    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended; 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 and 
indirect transfer of the licenses, as described herein, is

[[Page 45178]]

approved for Pilgrim and the ISFSI, subject to the following 
conditions:
    (1) Prior to the closing of the license transfer, Holtec Pilgrim 
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.
    (2) The NRC staff's approval of this license transfer is subject to 
the Commission's authority to rescind, modify, or condition the 
approved transfer based on the outcome of any post-effectiveness 
hearing on the license transfer application. For example, if the 
Commission overturns the NRC staff's approval of this license transfer, 
this Order and any conforming amendments reflecting this transfer, will 
be rescinded, and the Applicants must return the plant ownership to the 
status quo ante and revert to the conditions existing before the 
transfer.
    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 and indirect license transfer, is approved. 
The amendment shall be issued and made effective within 30 days of the 
date when the proposed direct and indirect license transfer action is 
completed.
    IT IS FURTHER ORDERED that Holtec Pilgrim and HDI 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 Pilgrim 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 November 16, 2018, as supplemented by letters dated 
November 16, 2018, April 17, and July 29, 2019, and the associated NRC 
safety evaluation dated August 22, 2019, 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 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 Public Document Room reference staff by telephone at 
1[dash]800[dash]397[dash]4209 or 301[dash]415[dash]4737 or by 
e[dash]mail to [email protected].

    Dated at Rockville, Maryland this 22nd day of August, 2019.
    FOR THE NUCLEAR REGULATORY COMMISSION
Ho K. Nieh,
Director, Office of Nuclear Reactor Regulation.
[FR Doc. 2019-18506 Filed 8-27-19; 8:45 am]
 BILLING CODE 7590-01-P