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March 29, 2006

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Legal Battles Intensify Over Oyster Creek Plant
By Bob Ivry
NorthJersey.com, NJ

March 15, 2006

In the skirmish over the future of the Oyster Creek nuclear power plant, both sides – the state of New Jersey and Exelon, the facility's owner – are sending their lawyers out to do battle.

Attorneys for the federal Nuclear Regulatory Commission, meanwhile, are taking on the state and a residents group that won a rare decision last month to force a public hearing concerning corroded metal housing the radioactive reactor core.

The state wants the Nuclear Regulatory Commission to hold a hearing on three safety issues at Oyster Creek. Exelon and the NRC argue that public hearings are needless.

At issue is a license renewal for the country's oldest commercial nuclear reactor, nine miles south of Toms River, which would keep it open until 2029. The outcome has implications for one-third of the reactors in the United States that have the same "boiling-water" design as Oyster Creek.

The three-judge panel of the Atomic Safety Licensing Board approved a resident group's petition for a public hearing on Exelon's re-licensing application. The petition was based on concerns about damaged metal in the plant. The metal, less than 1 inch thick in places, lines the plant's concrete containment structure, or "dry well," which houses the reactor core. The liner helps prevent the release of radiation in case of an accident. Leaking water caused parts of the dry well liner to corrode.

The residents group argued that Exelon's oversight of the corrosion was inadequate, and measurements of the liner's thickness – which would determine the extent of the damage and its possible growth -- were taken too infrequently.

The deadline for an appeal was Tuesday, and Exelon announced it would challenge the judges' decision.

"We're confident that the dry well corrosion has been adequately addressed and will continue to meet design safety requirements until 2029," said Oyster Creek spokeswoman Rachelle Benson.

Benson added that there was sufficient information about the corrosion available on the plant's license renewal Web site, oystercreeklr.com.

"People who are interested can go and read it," she said.

Richard Webster, staff attorney with the Rutgers Environmental Law Clinic, which is handling legal issues for the residents group, said Exelon's appeal shows that the company is "afraid" of a public airing of its corrosion management program.

"Instead of addressing the substance of the issue, [Exelon is] resorting to legal obfuscation," Webster said.

Also last month, the state Department of Environmental Protection petitioned for a public hearing based on three safety areas – the plant's alleged vulnerability to a terrorist air attack, concerns about the same metal liner and the fact that the facility's backup generators are owned and operated by a company other than Exelon. The same three-judge panel turned down that petition.

The state said it would appeal. Citing "the complexity of the issues and paramount public interest," the state applied for and was granted an extension for that appeal. It must file by March 28.

"While lawyers are working on an appeal and figure out a strategy, we will not comment further," said DEP spokeswoman Elaine Makatura.

The final decision on Oyster Creek's license renewal rests with the federal Nuclear Regulatory Commission, which might take into account any concerns aired at a public hearing, said Neil Sheehan, an NRC spokesman.

At the same time that NRC attorneys argued on the side of Exelon and against the petitions of both the residents group and the state of New Jersey, its technical workers have expressed concerns about the robustness of the corroded dry well liner.

The NRC announced Tuesday that it would appeal the judges' ruling in favor of the residents group.

The NRC will base its decision on re-licensing on just two factors: Oyster Creek's management of aging reactor components and any environmental impact the plant may cause in the 20-year re-licensing period.

David Lochbaum, a nuclear engineer with the watchdog group Union of Concerned Scientists, said if the residents group prevails, it will affect all 34 boiling-water reactors in the country, which have the potential for leaking water to cause corrosion on their dry well liners.

"This is an issue for all boiling-water reactors, even those outside the added scrutiny of the re-licensing process," Lochbaum said. "Public intervention during the original licensing of nuclear plants [in the 1960s and 1970s] led to a whole series of improvements across the fleet of reactors. And it was to everyone's benefit, including the nuclear industry, which benefited by having more reliable plants."