ML19273C048
| ML19273C048 | |
| Person / Time | |
|---|---|
| Site: | Bailly |
| Issue date: | 06/22/1979 |
| From: | Bohn R NORTHERN INDIANA PUBLIC SERVICE CO. |
| To: | Ballard R Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 7906290108 | |
| Download: ML19273C048 (32) | |
Text
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jj Northern Indiana Public Service Company
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Nuclear Staff RR #3, Box 501 Chesterton, IN 46304 June 22,1979 BAILLi' GENERATING STATION N-1 Mr. Ronald Dallard 1
Env:.ronmental Projects Branch No.
Directorate of Licensing U.S. Nuclear Regulatory Conrission 20545 Washington, D.C.
NORTHERN INDIANA PUBLIC SERVICE COMPANY BAILLY GENERATING STATION NUCLEAR 1 RE:
DOCKET 50-367
Dear Mr. Ballard:
copies of the following:
Enclosed herewith are ten (10)
Well Charts for 6/6/79 - 6/13/79 1.
Bailly Wells Without Recorders for 6/13/79 2.
Pond Levels for 6/13/79 3.
for 6/13/79 Pneumatic Pressure Transducert 4.
Water N ter Readings for 6/13/79 5.
Sincerely,
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R. J. Bohn Manager, Nuclear Staff DBY/mlk Enclosures Ground Water Observation Monitoring Wells File:
7906290jcg;4
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,y April 23, 1979 Ms. Mary Sinclair Vice President in Charge of Cocnunications and Research Great Lakes Energy Alliance P.O. Box 1108 Midland, Michigan 48640
Dear Pa. Sinclair:
Thank you for your letter of March 28, 1979 concerning the possible sale of an interest in the Consumers Power Ccmpany's Hidland nuclear plant to certain rural cooperatives and municipal utilities.
As you may be aware, the Atomic Safety and Licensing Appeal Board found that certain of the Company's activities were inconsistent with the antitrust law within the meaning of Section 105c of the Atomic Energy Act of 1954, as amended. The Appeal Board subsequently remanded the matter to an tiRC Atomic Safety and Licensing Board to develop remedies.
Among the remedies to be considered is the sale of an interest in the Midland nuclear plant to other entities. This matter is currently pending before the Licensing Board. Accordingly, I cannot cocrent further since I may be called upon to review rulings and decisions of the Licensing Board or the Appeal Board regarding this matter.
It is my understanding that representatives of the rural cooperatives and the municipal utilities have infomally discussed with the flRC Staff the procedures for seeking NRC approval of their purchase of an interest in the Midland nuclear plant so as to avoid the problem posed in the Femi-2 situation. To date, however, no fomal application has been filed with the fiRC requesting approval for the purchase of an interest in the Midland nuclear plant by these entities. Pending the receipt of such an application or the receipt of infomation that a purchase agreement has been executed without fiRC approval, there is no official involvement of the liRC in the matters you describe in your letter.
If a fomal application for an amendment of the Midland license to pemit a change in ownership is received the f1RC will publish a notice of its receipt.
I will arrange for you to receive a copy of that notice.
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BOX 1108 MIDLAND, MICHIGAN 48640 March 28, 1979 SPoNSCRS Mr. Peter Bradford, Commissioner U',','"d$,
Nuclear Regulatory Commission o
Petoskey Washington, DC 20000 Helen LaTarte Rogers city
Dear Mr. Bradford:
Dr. Jarnes Woocyard D*'r$t In February, 1977, Detroit Edison sold 20% of the Fermi #2 Jane Eider nuclear plant in Monroe, Michigan, to two Michigan Rural Co-
""S operatives.
The rural co-ops were able to advance a loan to Drl Reert Asperger Detroit Edison of $250 million, backed not by their own resource
,d but those of the Ru.ral Electrification Administration, which is
$yc'h**"**..
backed by taxpayers ' dollars.
e Fr. Gerald Xefer Midland The day after that sale, Detroit Edison resumed construc-Fr. Arthur Cooney tion of Fermi #2.
Construction had been halted at that plant saginaw for three years because Detroit Edison had not been able to snaron wilson raide money on the open market to build the plant.
st. Joseon Donna Asselin At that time, Dr. Robert Asperger of Midland, Michigan, stJoses brought to the attention of the NRC the fact that NRC's rules
[' "f,[,, Y"C*d had been violated in not holding a hearing prior to the com-j'
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pleui n of that sale.
susan Gunther Bay City Mary sincta;,
Edson Case, counsel for NRC, agreed that this was a Midiand violation of Section 101 of the Atomic Energy Act, and Mary Lou Guntner 10CFR 50.10 (copies of that letter and other back-up docu-Bay City mentation are enclosed).
Bill Morey
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We now want to bring to your attention the fact that
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Consuners Power Company is negotiating with municipal utilities
,n and rural co-ons to sell them part of the Midland n-plants, Re G' "
apparently without regard to the same administrative rules
,nd Dr. cark Most. Jr.
that were violated at Fermi #2.
Midland Enclosed is the hearing announcement before the Michigan Public Service Commission (Case No. U-6042) in which this utility requests " accounting and rate-making treatment for
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certain transactions related to the sale of ownership interests in certain generating and transmission facilities now under construction".
The Midland n plants are listed among those facilities.
We believe the NRC should enter that rate case to hold the Michigan Public Service Commission and Consumers Power Company accountable for meeting the NRC requirements for transfer of e.'nership.
7 906 0113M
Mr.. Peter'Bradford
' March 28, 1979
'Page Two We are sending you othere documents (among the back-up documents enclosed) which indicate the REA has a requirement for a timely environmental impact statement not only at the facility which would provide power but in the service area also.
REA side-stepped this ruling in the case of Fermi #2 by stating that the NRC was the lead agency in that transaction and since the NRC was accepting the EIS prepared in 1972 as sufficient, REA would regard it as sufficient also.
This failure to require a timely EIS at Fermi #2 is a dereliction of duty on the part of both the NRC and REA.
It has effectively cut off all members of the rural co-operatives from being able to go ahead with plans to build regional facilities using wood wastes and coal which would give them a local tax base and employment--something they badly need.
It is time that the NRC stops making it possible for utilities to get vast sums of taxpayers' money for nuclear facilities which will not stand the test of the open marketplace.
We believe you should require utilities across the nation to meet your administrative requirements as well as those of the REA.
Jack Doyle of the Environmental Policy Institute, 317 Pennsylvania Ave, S.E.,
Washington, D.C.
20003, has written a report on the effort nation-wide to get RZA backing for nuclear facilities.
Copies of these documents are being made available to the Michigan Delegation in Congress through the efforts of the 10th Congressional District Congressman, Don Albosta.
Yours sincerely,
'L h
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Mary Sinc air GREAT L : ES ENERGY ALLIANCE Vice President in charge of Communications and Research Enclosures cc:
Michigan Congressional Delegation Michigan Public Service Commission Speaker of the Mich. House of Representatives, Bobby Crim Nuclear Regulatory Commission
TO THE ELECTF.!C CUSTOMERS OF CONSU.V.2RS POWER COMPANY NOTICE OF HEARING Case No. U 6042 On.!anuary 25,1979, Consumers Power Com-five-year period. The associated income tax effect 043y line Company) filed an Application witn the
'of this fee would_ be chsged to Account 190 and
.U.cn;;an Pubiic Service Commission in Case No.
crerb ted to Account 411.1. These amounts an U 6042 repuesting accounting and ratemaking Account 100 would be amortizert by changes to treatment for certain transactions related to the i Account 410.1 over the same five vcar period.
so e of ownersnia interests in certain Generating
- The Company currently estimates the com-ano transmission facilities under construct.on.
.bined additional tax expense resulting from the in ins Appi; cat.on the Company states that two, proposed sale of ownership interests to bc cooperatives, a municipal joint agency,and certain
$ 10.660,000. Amortszed over the five year period, l
i oiner munic;palities are negotiating with the Com.
' the increased tax expense on en annual b. sis pany for the purchase of undivided ownership would be S2,151,000 with a related revenue
.aterests in Campoeil Unit No. 3 and Midland,
requirement of S4,087,000 of which S3,051,000,
. Un+ts *\\o.' 1 and No. 2, tnree electric generating would be charged to jurisdictional electric cus-units presently under construction by the Com.
romers. The additional flax upense which may i
pany. Separate but related agreemen ts would result from sale of the transmission line property establish the respettive ownership interests of the-jn question is currently unknown.
f Company and cooperatives and joint agency and NOTICE IS HEREBY GlVEN that:
municipa ities in the tnree units, arid in certain
' A. Public hearings will commence at 9:30 a.m.
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nuciear fuel, establish the joint owners' capacity- ' on April 4,1979 in the offices of the Commission, ti and energy entitlements in each of the three units, Mercantile Builoing. 6545 Mercantile Way, Lansing, I
crovice for tne payment of an amount for Other
' Michigan, cr.d contmue tnereafter from cay to day
'f Reasonao;e Costs associated with tne accumulated' or on such aojourned dates as the presiding officer Costs of Construction, provide for the purchase oy may set until the matter has been fully heard. Any t,e Com:any of a ced.ning fractional part of eacn
- interested persons may attend the hearings and coo:er ati se's.
- o.nt agency's and municipah ty's participate, sublect to the provisions of the Com-snare of e ectric capacty from the three units, and mission's Rules of Practice and Procedure, estaansh loint ownership interests in certain 345 B. Any person seeking to intervene, in ac-kV transmiss.on knes. In its Application, the Com-cordance with Rule 11 of tne Rules of Pract.ce pany repoests approval of 0) inclusion in the cal-
,and Procedure Before tne Commission, shall file ~
cWat.on of its purcnased and net in terchange with the Commission, on or before March 30, power. ac;ustment of the capacity charges asso.
1979, an original and 15 copies of a petition to c:ated witn its puranase of a fractipnal part of the intervene. toqether with proof of service upon cooperatives *, joint agency's and municipalities
- Consurners ' Power Company, General Counset, snare of e;ectric capacity from the three units and 212 West Michigan Avenue, Jackson, Michigan bil certain accounting and ratemaking procedures 49201 relat;ng to the Comoanv'< uta a'
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j NUC1. EAR REGUL.ATORY COMMiss!ON J1 y
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...e Detroit Edison Company
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Attn: Mr. C. M. Heidel s
Vice President, Operations f.!
2000 Second Avenue g
Detroit, Michigan 48226
.i Gentlemen:
As you are aware, the Comission has received requests from Dr. Robert Asperger, Martha Drake and Rodney Bailey requesting that the Commission immediately suspend and after appropriate hearings, revoke the construction pennit of Detroit Edison Company for the Enrico Fermi Atomic
.i Power Plant IJnit 2.
In addition they requested that civil penalties be assessed against Detroit Edison Company, its officers, directors, and c
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- - management, and the similar members of Northern Michigan Cooperatives,
-+5 Inc., and Wolverine Electric Cooperative, Inc. _
.,e I have carefully reviewed their requests'and the circumstances of the change in ownership related to the sale of the 20" interest in the Fenni 2 facility to the above Cooperatives.
I have determined not to s
take the action requested.
b However, for the reasons stated in the attached letter to Dr. Robert Asperger, I have found Detroit Edison Company and the Cooperatives in
- t' OC apparent violation of section 101 of the Atomic Energy Act of 1954, as d5'f amended, and 10 CFR 50.10 of the Connission's regulations and have, y
therefore, sent this Notice of Violation.
Accordingly, within thirty (30) days of the receipt of this letter, please submit in writing a statement of the steps that will be taken to avoid a recurrence of the violatt n.
3'g Sinc ly, Dx Edson G. Case, Acting Director Office of Nuclear Reactor P.egulation cc: Eugene B. Thomas, Esq.
-d Peter A. Marquardt, Esq.
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Enclosure:
Letter to Dr. Asperger.
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strletion:, waiver and covenant: heecin Oct f <. r :. no f(
mutual benefit of the l'arties and thcie successors and a: signs.
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that such benefit, i: best coalized by in:ucing to each tenan' co=. mon the value of owncc: hip. use and cperation of reeml 2 du-y such period: and (q) said ecsecistions, conditions, testricti e
waiver: and covenants are rea:enably related to a peeper pucpery be acecmplished, and that said pet ted is thetuCcre reasonat:1: ")
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j EDISC:1 covenants tha t the pecpecty conveyed is fre all encumbconces and t! at lawful seisin of and gced right to c.-
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,4; Dr. Robert G. Asperger O
12 Dennis Court W
Midland, Michigan 48640 kW%
Dear Dr. Asperger:
This is in reference to your letter dated November 19, 1977, in which
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you requested pursuant to 10 CFR 892.206 and 2.202 of the Ccmission's regulations that the Nuclear Regulatory Commission (NRC) immediately suspend and after appropriate hearings, revoke the construction pernit of Detroit Edison Company for the Enrico Femi Atomic Power Plant Unit O
2.
You also requested that civil penalties be assessed against Detroit
?j Edison Ccmpany, its officers, directors and management, and the similar members of Northern Michigan Electric. Cooperative, Inc., and. iverine
- _j Electric Cooperative, Inc., (Cooperatives)..Your request has been 3.,:
assigned to my office for action.
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~Noticeif your request was published in the Federal Register at 42 FR
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- 64159 (December 22,1977) and a copy of your request was sent to the
..s Licensee on December 14, 1977. The attached letters were received in
- response to your request.
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The reason stated for your requested action was that Detroit Edison had carried out an illegal sale of a 20". undivided interest in the
-n Femi 2 facility. You contend the sale was illegal because the transfer
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took place before written consent was given by the Comission and be-
~T Tfore the technical and financial qualifications of.the proposed "
transferees were established. You further contend such action is
.'s prohibited by 10 CFR 50.80(a-c).
Section 50.80 has not been violated by Detroit Edison. This section
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which implements section 184 of the Atomic Energy Act of 1954, as 6-amended, (Act), provides in pertinent part that "no license for a production or utilization facility, or any'right thereunder,' shall be transferred, assigned or in any manner disposed of...through transfer of control of the license to any person, unless the Com-mission shall_ give its consent in witing".
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In the circumstances of t has not transferred cont 7
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Edson G. Case
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Acting Director Office of Nuclear Reactor Regulation
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Nuclear Regulatory 1
'Conmission Wasn.angton, D.C.
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Dear Mr. Case:
By letter dated November 19, 1977, Dr. Robert G.
Asperger recuested that the Director of nuclear Material Safety and Safeguards, the Director, Office of Inspection and Enfercement, and the Director of Nuclear Reactor Regulation "i==ediately suspend and, after appropriate hearings, revoke" Construction Permit No. CPPR-87 issued to The Detroit Edison Conpany for the Enrico Fermi Atomic Power Plant, Unit No. 2
( " Fermi 2 " ).1/
Dr. Asperger's clai= is based on the argument that Detroit'~ Edison has violated specific Cec =ission regulations by a " sale" of an undivided 201 ownership interest in Fermi 2 2./
.to Northern Michigan Electrical Cooperative, Inc. and Wolverine Electric Cooperative, Inc. ("the Cooperatives ").
_1/
Although Dr. Aspe r'.ser refers in his recuest to "Fer.i
^1", we assume he is referring instead ec Fermi 2.
2f This transaction is fully described in the document,
" Participation agreement b and Northern Michigan Elec Wolverine Electric Ccopera DUPLICATE DOCUMENT
("?articipation Agree =ent" May 6, 197s.
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A.waro Counsed 4*
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MC (313) 237 60C0 Legal Department Thomas P. Beagen Stephen M. Carpman gIUog
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- l' Peter A. Marcuardt Christopher C. Nern James M. Schneider Ob5I 5.0 Senso, Attorneys Jack M. Abetta January 11, 1978 Thomas P. Bingman Jr.
David L C: ark Margaret A. Coughlin James J. Daskalott John H. Flynn Michael D. Gladstone John H. Goetz James Lieberman, Esq.
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Office of Executive Legal Director Raymond O. Sturdy KT
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Nuclear Regulatory Commission
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William A. Wichers H Washington, DC 20555 Start Attomeys
Dear Mr. Lieberman:
This letter will confirm our telephone conversation of January 6 at which time you requested certain informa-tion concerning the sale of a portion of the Enrico Fermi Atomic Power Plant Unit 2-to the Northern Michigan Electric Cooperative and the Wolverine Electric Coopera-
.tive.
Specifically, this will advise you that at the time of closing no written waivers pursuant to Section 9.9 were executed by any party.
Further, it is the position of the Company that no written waivers were required and the provisions of Section 9.9.1 were satis-fled.
It is the Company's opinion that the agreement provides that if any long-term financing or any extension of the interim financing arrangements are not timely obtained or if any required license or approval is not obtained w
prior to commercial operation by the cooperatives from the NRC, the Company is obligated to repurchase the cooperatives' interests in the facility at the cost of their investment.
I hope the above information is sufficient for your purposes.
However, if you have any additional questions, please feel free to contact me.
Very truly yours,
-7 s
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