ML061360197

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Comment (1) of Robert C. Mcdiarmid on Behalf of the Northern California Power Agency on the Proposed Amendments to the Licenses Filed by Pacific Gas & Electric on January 19, 2006
ML061360197
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 05/12/2006
From: Mcdiarmid R
Spiegel & McDiarmid
To:
NRC/ADM/DAS/RDB, NRC/SECY
References
71FR19551 00001
Download: ML061360197 (7)


Text

Page 1j Doris F DrisMeniola - Docket Nos.

Comments, Docket Mendiola - Attached Comments, and 50-323 50-275 and Nos. 50-275 50^323 ' Page~ 1 EP _ - - -.

From: "McDiarmid, Robert C." <robert.mcdiarmid @spiegelmcd.com>

To: <hearingdocket@ nrc.gov>

Date: 5/12/06 3:55PM

Subject:

Attached Comments, Docket Nos. 50-275 and 50-323

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Subject:

Attached Comments, Docket Nos. 50-275 and 50-323 Creation Date: 5/12/06 3:54PM From: "McDiarmid, Robert C." <robert.mcdiarmid@spiegelmcd.com>

Created By: robert.mcdiarmid@spiegelmcd.com Recipients nrc.gov OWGWPOO2.HQGWDOO1 HearingDocket (HearingDocket)

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St SPIEGEL & MCDIARMID GEORGE SPIEGEL 1919-1997) ASSOCIATES ROBERT C. MCDIARMID 1333 NEW HAMPSHIRE AVENUE, NW DAVID B. LIED ROBERT A JABLON WASHINGTON, DC 20036 ANDREA G. LONIAN JAMES N. HORWOOD LARISSA A. SHAMRAJ FRANCES E. FRANCIS STEPHEN C. PEARSON DANIEL I. DAVIDSON WWW.SPIEGELMCD.COM SEAN M. FLYNN THOMAS C. TRAUGER ELAINE C. LIPPMANN JOHN J. CORBETT RUBEN D. GOMEZ CYNTHIA S. BOGORAD Telephone 202.879 4000 REBECCA J. BALDWIN' SCOTT H. STRAUSS Facsimile 202.393.2866 l OS D AA.

LISA G. OOWDEN E-mail INFOOSPIEGELMCDCOM RISE J. PETERS OF COUNSEL PETER J. HOPKINS ALAN J. ROTH (1933.2003)

DAVID E. POMPER MIL Direct Dial 202.879.4040 PAUL N. CONNOR WILLIAM S. HUANG EMAIL ROBERT.MCDIARMID@SPIEGELMCD.COM MARK S. HEGEDUS PABLO 0. NUESCH TILLMAN L. LAY MARGARET A. MCGOLDRICK MARGARET A. MEISER JEFFREY A. SCHWARZ BARRY M. SMOLER SANDRA J. STREBEL LEE C. WHITE May 12, 2006 Chief, Rules and Directives Branch Division of Administrative Services Office of Administration U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Via e-mail: hearingdocketenrc.gov Office of the Secretary U.S. Nuclear Regulatory Commission Re: Docket Nos. 50-275 and 50-323

Dear Sir:

The Northern California Power Agency ("NCPA") files these comments on the proposed amendments to the licenses filed by licensee Pacific Gas & Electric in these dockets on January 19, 2006, pursuant to the Notice of Consideration of Issuance of Amendments to Facility Operating Licenses ... placed by this Commission in the Federal Register of April 14, 2006, at pages 19551 etseq.

The proposed amendments would remove the antitrust license conditions which are a part of the licenses in these dockets and were established pursuant to an agreement of April 30, 1976, between the current licensee and the Assistant Attorney General, Antitrust Division, United States Department of Justice, the necessity for which was in turn determined based upon the results of an investigation by the Antitrust Division into concerns raised by NCPA and some others. NCPA has been held to be a third party beneficiary to that agreement, capable of enforcing the agreement to the license conditions in district court. United States v. PacificGas and Elec. Co., 714 F. Supp. 1039 (N.D. Cal. 1989), appealsdismissedper stipulation, No. 91-16011 (9th Cir. Mar. 20, 1992).

Nonetheless, this will advise the Commission that licensee and NCPA have reached an agreement by which NCPA will not contest the grant of the relief sought by licensee. A copy of

Chief, Rules and Directives Branch May 12, 2006 Page 2 the agreement (not yet formally executed, but which both parties have authorized be represented to this Commission as agreed upon), is enclosed.

Notwithstanding the agreement, we request that we be placed upon the service list for this matter.

very truly, Robert C. McDiarmid Counsel for the NORTHERN CALIFORNIA POWER AGENCY

Enclosure:

Settlement Agreement in unsigned form cc: David Repka, counsel for licensee Doc#: 1 96460

SETTLEMENT AGREEMENT This settlement agreement is made as of this _ day of May, 2006, by and between Pacific Gas and Electric Company ("PG&E") and the Northern California Power Agency ("NCPA"), jointly the Parties.

Recitals WHEREAS, PG&E is the licensee of Facility Operating License Nos. DPR-80 and DPR-82 ("Licenses") for Units 1 and 2 of the Diablo Canyon Power Plant ("DCPP");

and WHEREAS, the Licenses are subject to and now each contain Appendix C (the Antitrust Conditions); and WHEREAS, PG&E has filed with the NRC in Docket Nos. 50-275 and 50-323 (the "NRC Proceedings") to remove the Antitrust Conditions from the Licenses; and WHEREAS, the Antitrust Conditions arise out of the Stanislaus Commitments, which derived from the NRC licensing proceeding for the proposed, but never completed, Stanislaus Nuclear Plant, and which were included in the Licenses by virtue of PG&E's commitment in 1976 to the Department of Justice; and WHEREAS, NCPA is and has been held to be a third party beneficiary of the Stanislaus Commitments, and has previously sought to enforce them in its capacity as a third party beneficiary; and WHEREAS, PG&E and NCPA in November 1991 entered into a settlement

("1991 Settlement Agreement") in which PG&E agreed to abide by the Stanislaus Commitments through January 1, 2050, notwithstanding whether these commitments continue to be included in the DCPP Licenses; and I

WHEREAS, PG&E has represented to the NRC in the NRC Proceedings that PG&E will continue to meet its obligations with respect to the Stanislaus Commitments pursuant to the 1991 Settlement Agreement; and WHEREAS, PG&E and NCPA desire to settle and resolve any disputes concerning the NRC Proceedings and to avoid the further expense, burden and inconvenience of litigation, NOW THEREFORE, in reliance on the foregoing recitals, and in consideration of the mutual promises, covenants and obligations herein, the Parties hereby agree as follows:

Terms I. PG&E, on behalf of itself, its successors and assigns, agrees that the 1991 Settlement Agreement is an enforceable contract and that NCPA may between now and January 1, 2050 enforce the rights accorded to a Neighboring Entity under the Stanislaus Commitments, attached hereto at Exhibit 1, and the 1991 Settlement Agreement, attached hereto as Exhibit 2.

2. This Settlement Agreement does not in any way interpret, expand or otherwise modify the terms of the Stanislaus Commitments or the 1991 Settlement Agreement or any subsequent interpretation of either of those documents by the Federal Energy Regulatory Commission ("FERC").
3. NCPA agrees not to oppose or attempt to condition in any way PG&E's request in the NRC Proceedings to remove the Antitrust Conditions from the Licenses.

2

-FI I 14

4. The 1991 Settlement Agreement and this Settlement Agreement may be enforced at the FERC, to the extent it may have jurisdiction over this matter, or in any court of competent jurisdiction.
5. The undersigned represent that they have the requisite authority to act on behalf of, and bind PG&E and NCPA, respectively, to the terms of this Settlement Agreement.

PACIFIC GAS AND ELECTRIC COMPANY By:

Name: Roger J. Peters

Title:

Senior Vice President and Chief Counsel Date:

NORTHERN CALIFORNIA POWER AGENCY By:

Name: James H. Pope

Title:

General Manager Date:

3 DC:467090.2