ML18347A697

Informing Not Received from AEC Lawyers, Letter as to Whether NRC Is Required by Its Regulations to Assess Financial Requirements of Consumers Beyond Six Months or a Year

ML18347A697
Person / Time
Site:	Palisades, Big Rock Point, Midland  File:Consumers Energy icon.png
Issue date:	01/25/1975
From:	Cherry M Law Offices of M M Cherry
To:	Giambusso A Office of Nuclear Reactor Regulation
References
Download: ML18347A697 (5)

Text

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LAW. OFFICES MYRON M.CHERRY ONE IBM PLAZA CHJCAGO. ILLINOIS 60611 (312) 565-1177

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50-329-330 January 25, 1975 Mr. Angelo Giambusso Deputy Director for Reactor Projects Directorate of Licensing Office of Regulation

.u. s. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Angelo:

Consumers* is falling apart and a word to the wise should be sufficient.

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I ~t:.i.:: 1-J.u-vc ii0 ;_ ..1..:e;~el v*eU Ir:orn your ;:_lawyers*~ a

• 1etter as to whether the NRC is required by its regula-tions to assess the financial requirements of Consumers beyond six months or a year.

Since:r;'ely,

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Myron M. Cherry MMC:KK Enclosure

ROBC:RT C. V/IN~E'R J05E:Pt<t H. PARScr-15 GEH~.LD L. STOETZE.r.t ARTHUR' r::._ co.,.r1TON CLARK, KLEIN.WINTER, PARSONS & PREWITT COUNSELORS AT LAW

. WILHEL,..~lf.;.1>. E:!OEnS.MA H. \*/ILLIAW.. Dt.:'!L£R 1600 FIRST .FEDERAL BUILDING JOSCPH D.SHEnn~RO

.JOH C. OCNN2.!..LY SH I R L E Y T . .J 0 ,.1 ~~ S 0 ti SIDtlCY VI. SMITH . .Jn. 1001 WOODWARD AVENUE OF COUNSEL DAVID P.* *nooo ME:LCGUHf-:E .J. MILLER DETROIT, MICHIGAN 46226 Pt.iC:R S"">.L'"'-ER Jl ~OSEPH H, CLARK LAURCr~ce: ~- SC0\1ILLC. JR. AREA CODE 313 1860 .. 1941 HE:f..:RY EARL~ (fl GEORGE H, Y.cCIN WILLIJ..M 8. OV1'N 962-6492 1861 - 1960 OOUGl..t.S .J. R.J.S~USSE:N ETHAN C. PRE VII TT DAVID M. 1-tAYES 1903 - 1971 RCGC.P.":' G. B~YDENS RICHAQ::> C. MAqSH M.V. t<ELL PAMELA. J. LIOGETT ROtJALD E.GREEfJLEC JAMES C.VAN CY~E

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CHAP.=....£5 J_ SENGER THOMAS S. NOWINSKI Ja._Tluary l4, l975 Mr. Michael Glaser Chairman Atomic Safety & Licens;ng Board ll50 - l7th Street, N.W.

WashL'lgton, D. C. 20036

Dear Mr. Glaser:

Tllis .is to ad.-\tj_sc _-'cl1J,t Cor1s~~2r~ Pc~.-7e:r Co~c.~~r j_s !'.fJt. "'tV.:i.l li:ng to grant Bechtel a further extension of time within which to plead to the Complaint in the Consur:.:.ers Pm*rer lawsuit in the U. S. District Court for the *He stern District of Michigan, regarding the Palisades Plant. .Accordingly, Becr~tel :plan.s to file a Eotion for an Extension of Time and/ or Meire Def:illite StateI:J.ent by Wednesday, January l5.

We also wish to advise that Bechtel is unwilling to extend the time wi t'b.J.n which Consun:ers Power Company may answer Bechtel 1 s Interrogatories; which Interrogatories seek. to determine the alleged basis for the Complaint.

Consumers has served its first set of Interrogatories on Bechtel and I am enclosing a copy for your information.

We have been advised tho..t the reduction of funds available for the construction of the I*Iidlar1d Fla.Lt has caused _a substa..'1tial cutback in engineer-ing and cor;struction activities. This Teduction, together with sir:lilo..r

- reductior.s L'1volving other wor?:. Bechtel b<> s been :performing at its P.nn Arbor, l-!ichican, o!~.fice, will result i:::-i a reduction of :perso::mel and a transfer o-f certain f;_;,,:1ctions to Ee:::htel 1 s ho:::1e office in. San :Francisco. Ho,*;ever, we are advised th::!.t these recluctio!1s and chane;es wi~ have no adverse i..-rnpact on the qaality a:::.::urr;.r.ce efforts set forth in Bechtel's te_stir.:o!ly in the Midland Show Cause Proceeding.

Mr. Michael Glaser Januar-.f l4, l975 Page Two We are in the process of determining the extent of these cutbacks and will advise the Boa.rd when our information is complete *

. Very tr~ yours, CL.A..RK, Y.LEIN, WINTER, PARSONS & Plli~HITT

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/tA .../ *D~ I, Laurence M. Scoville, Jr.

I1J!S/do Enclosure cc: ster Kornblith, Jr.

'rnmeth A. Luebke James P. Murray, Jr.

Myron M. Cherry Michael I. Miller

£.:ir. Wiiiicµ-n J. Olmstead.

• LAW OFFICES MYRON' M. CHERRY ONE IBM PLAZA CHICAGQ. ILLINOIS 60611 (312) 565-1177 January 25, 1975 Mr. Michael Glaser Chairman Atomic Safety & Licensing Board 1150 - 17th Street, N.W.

Washington, D.C. 20036 Re: Midland Plant, Units 1 and 2, Construction Permit Nos. 81 and 82

{Show Cause)

Dear Mr. Glaser:

I have recently received a copy of a letter dated January 14, 1975 from Mr. Scoville to you forwarding certain papers in the Palisades litigation. In Mr. Scoville's letter is a statement appearing at the bottom of paqe one and at the top of page two that the Midland plant has suffered "a sub-stantial cutback in engineering and construction activities" because of a lack of available funds. Mr. Scoville's letter suggests that while this could have some impact on QA-QC, he has been "advised that these reductions and changes will have no adverse impact on the quality assurance efforts set forth I . in Bechtel's testimony. 11 And as if to make the circle complete,*

Mr.* Scoville then admits that he does not have sufficient informa-tion on the cutbacks to make an informed judgment.

Several things are clear:

1. The chief QA-QC participant (Bechtel) has indicated that there is, as a result of lack of funds, a reduction of per-sonnel and a transfer of certa~n functions;

2. Bechtel's lawyers themselves raise the question of the relationship between those cutbacks and reduction of the adequate QA-QC performance.at Midland, as well as the continued viability of Bechtel's testimony in the Show Cause proceeding; and

3. No information is made available to determine whether Mr*. Scoville' s 11 advice" is accurate or indeed whether because of the changes and reduction, Bechtel's testimony at the Midland pro-ceeding has now been overtaken by events.

~

Page Two Mr. Michael Glaser January 25, 1975 The question of monetary limitations which adversely affects the building of a nuclear power plant *i$, of course, precis~ly the kind of issue which is. inherent in the pending proceedings. We do not see how the Board can fail to reopen the record now in light of the admission of Mr. Scoville. Certainly before any decision adverse to the reopening of the record can be made, all parties must be advised of what is lurking behind Mr. Scovill.e's statements. Since Mr. Scoville's statements raise the distinct possibility that work is proceeding at Midland with-out adequate funds or personnel relative to QA-QC, we do not see how the Board can continue to delay its decision on reopening while permitting construction to proceed. -

We believe Mr. Scoville's letter has tendere~ an admission which requires the Board to issue an order to have Bechtel demonstrate whether its prior testimony has validity at this time. We do not believe the Board can ignore this informa-tion and we trust that i t will not.

Under .date of---January 17, 1975, the Regulatory Staff filed supplemental papers. These papers suggest that the Board should not reopen the reCDrd, because the charges made in Nucl*eonics Week have now been resolved. We have the following comments to make:

l .. Our* motion to reopen -cne record was not based upon the Nucleonics Week charges, but rather the Palisades lawsui.t;

2. Contrary to the statement made by the Staff that "the investigation is now comp1ete, the Keppler letter attached to the Staff's supplemental response indicates that the AEC could not complete the investigation because the .employees which made the allegations were afraid of losing their jobs. The Staff's statement that the allegation~ have not proven to be of substance is a misstatement of what actually transpired.

We have chose to communicate with you and the other members of the Board by letter in view of the fact that Bechtel's counsel did so and in view of the further fact that the Regula-tory Staff's filings were not accompanied.by motions for leave to file. Accordingly~ we believe our correspondence is appro-priate since the other parties are doing so as well.

'~inlrely,

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"!--/---;+----;'141 MMC:KK Myr n,tM. Cherry

'* I I c .. c. Mr. Lester Kornblith, Jre

• Mr. EITL~eth A. Luebke Mr. Michael I. Miller Mr. James P. Murray 3 Jr.

Mr. Angelo Giambusso

,Mr. Janes :r;:eppler

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