[Federal Register Volume 64, Number 159 (Wednesday, August 18, 1999)]
[Notices]
[Page 44965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21398]
[[Page 44965]]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[Docket No. 50-443]
North Atlantic Energy Service Corporation, et al., (Seabrook
Station Unit No. 1); Order Approving Application Regarding Corporate
Merger (Canal Electric Company)
I
North Atlantic Energy Service Corporation (North Atlantic) is
authorized to act as agent for the joint owners of the Seabrook Station
Unit No. 1 (Seabrook) and has exclusive responsibility and control over
the physical construction, operation, and maintenance of the facility
as reflected in Facility Operating License NPF-86. Canal Electric
Company (Canal), one of the joint owners, holds a 3.52317-percent
possessory interest in Seabrook. The Nuclear Regulatory Commission
(NRC) issued Facility Operating License NPF-86 on March 15, 1990,
pursuant to Part 50 of Title 10 of the Code of Federal Regulations (10
CFR Part 50). The facility is located in Seabrook Township, Rockingham
County, on the southeast coast of the State of New Hampshire.
II
Under cover of a letter dated February 11, 1999, North Atlantic
forwarded an application by Canal requesting approval of the indirect
transfer of control of Canal's interest in the operating license (OL)
for Seabrook. The application was supplemented on February 23, March 5,
and March 17, 1999 (collectively referred to hereinafter as the
application).
According to the application, Canal is a wholly owned subsidiary of
Commonwealth Energy System (CES). On December 5, 1998, CES and BEC
Energy (BEC) entered into an Agreement and Plan of Merger under which
those entities will merge into a new surviving Massachusetts
corporation (the ``New Company''). Upon consummation of the merger,
Canal will become a wholly owned subsidiary of the New Company, thereby
effecting an indirect transfer of Canal's interest in Seabrook's OL.
North Atlantic, the sole licensed operator of the facility, would
remain as the managing agent for the 11 joint owners of the facility
and would continue to have exclusive responsibility for the management,
operation, and maintenance of Seabrook. The application does not
propose a change in the rights, obligations, or interests of the other
joint owners of Seabrook. In addition, no physical changes to Seabrook
or operational changes are being proposed. No direct transfer of the
license will result from the proposed merger.
Approval of the indirect transfer was requested pursuant to 10 CFR
50.80. Notice of the application for approval and an opportunity for a
hearing was published in the Federal Register on April 27, 1999 (64 FR
22657). No hearing requests were filed.
Under 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. Upon
review of the information in the application, and other information
before the Commission, the NRC staff has determined that the proposed
merger will not affect the qualifications of Canal as a holder of the
Seabrook license, and that the transfer of control of the license, to
the extent effected by the proposed merger, is otherwise consistent
with applicable provisions of law, regulations, and orders issued by
the Commission subject to the conditions set forth herein. The
foregoing findings are supported by a safety evaluation dated August
11, 1999.
III
Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the
Atomic Energy Act of 1954, as amended; 42 USC 2201(b), 2201(i),
2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered That the
indirect license transfer referenced above is approved, subject to the
following conditions:
1. Canal shall provide the Director of the Office of Nuclear
Reactor Regulation a copy of any application, at the time it is filed,
to transfer (excluding grants of security interests or liens) from
Canal to its proposed parent, or to any other affiliated company,
facilities for the production, transmission, or distribution of
electric energy having a depreciated book value exceeding ten percent
(10%) of Canal's consolidated net utility plant as recorded on Canal's
books of accounts.
2. Should the transfer not be completed by August 1, 2000, this
Order shall become null and void, provided, however, on application and
for good cause shown, such date may be extended.
This Order is effective upon issuance.
For further details with respect to this Order, see the initial
application dated February 2, 1999, and supplements dated February 23,
March 5, and March 17, 1999, 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 room
located at the Exeter Public Library, Founders Park, Exeter, NH 03833.
Dated at Rockville, Maryland, this 11th day of August 1999.
For the Nuclear Regulatory Commission.
William F. Kane,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 99-21398 Filed 8-17-99; 8:45 am]
BILLING CODE 7590-01-P
