ML19276E046

Settlement & Termination of Special Proceeding.Since Comptroller General Held That NRC Was Not Responsible for Investigative Fees,Considers Issue Settled.W/Supporting Documentation

ML19276E046
Person / Time
Site:	Midland
Issue date:	01/18/1979
From:	Eilperin S NRC OFFICE OF THE GENERAL COUNSEL (OGC)
To:	Ahearne J, Bradford P, Gilinsky V, Hendrie S, Kennedy R NRC COMMISSION (OCM)
Shared Package
ML19276E044	List: ML19276E042 ML19276E045 ML19276E046
References
REF-10CFR9.7 NUDOCS 7903020196
Download: ML19276E046 (12)

Text

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.y 1,, ef'. 'g NUCLEAR REGULATORY COT. ::SSION

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January 15, 197,;

E::ORAUDUM FC?:

Chairman Eendrie Commissioner 3ilinsk:

Commis c i: n er F.er n e i;.

Ocmciscioner Eraiferd Commissioner Ahearne d[/ActingGeneralCounsel

??.0F-Stephen F Ei lp e rir-8

SUBJECT:

SETTLEMENT AND TERMIEATION CF SPECIAL PROCEEDING (DISCIPLINARY :'ATTER) IN Midland By letter of April 28 to Valentine Deale the Commission expressed approval of settlement terms presented by all parties to the special proceeding which would insofar as is possible have placed all parties and the record in the position they would be if nothing had ever happened in this matter.

The Commission stated its refusal, on policy grounds, to agree to a further condition of Mr. Cherry making his joining in the settlement contingent upon Commission payment of his actual out-of-pocket expenses.

The Commission also indicated that even were it willing tc pay, it was doubtful that it possessed the authority to do so.

On June 7, 1978 Chairman Deale advised the Commission that Mr. Cherry would join in the settlement without the condition of payment provided that the Cornission requested an opinion of the Comptroller General on a stated cuestion asking in effect whether an agency had authority to pay expenses of a private attorney in disciplinary prceeedings, and that the Comptroller General replied in the negative.

The Commission accepted the new condition prcvided by Mr. Cherry and on August 30, 1975 requestei an cpinion from the Comptroller Generai with respect to the following cuestion:

Ccntact:

Marj orie S.

Nordlinger, OGC 634-1465 7903026/f6

• s Jhe Ccm ission January 18, 1979 In connection with the termination and settlement of a special proceeding trcught to investigate charges against a private attcrney and ::RC staff attorneys, which termination and settlement results in a with-drawal and striking cf all charges against all such at:Orneys, does the URO have authority to reimburse a taximum of S1,000 in actual out-of-pocket expenses incurred on behalf of the private attorney in connec-tien with such proceedirg, when the NRC has paid all fees and expenses of the staff attorneys in connec-tion with such proceeding, and the NRC believes that the withdrawal, settlement and termination of the proceeding is in the public interest?

On January 10, 1979 the Cct;; roller C-eneral issued a decision (attached) which held that :he Nuclear Regulatory Ccmmissicn does nc have authority to pay such expenses.

In our view Mr. Cherry's condition is satisfied and the settle-nent agreement between all parties is now in effect.

It remains only for the Ccmmission to issue an order formally approving the terns agrced cn by the parties and terminating the proceedings en those terms.

We are attaching a proposed order to accomplish that end.

We note that in drafting the order we have avcided citations and uses of names of parties as the caterials to which we wculd cite are by the force of the crder stricken and such citations or names would violate the terns of the agreement.

We think it would be apprc;riate for the Commission to send its appreciation to the Special Ecard for its successful efforts in settlement.

At the sate time the Commission eculd, if it wished, suggest a sutrission date for responses to its recuect, extended in chairnar Mendrie's January 30, 1978 letter to Chairnan Deale, for "the Ecard's suggestions with regcrd t o ':ch the Cctrissi:n's prerent regulations for handling disciplinary matters might te imprcVed."

D.

_2

_ lear fr;r infcrnal cr 32sations between a caber Of cur cffice and Chairman Ceale and from Chairman Deale's le::er cf March 21, 1978 :: Chairman Hendrie that the Eoard is very interested in supplying its views.

Chairman Deale wrc:e a: that time:

,3e connission January 18, 1979 f the Connission approves the proposed settienent, the special board will consider its formal assignnent in the special proceeding at an end and will there-upon turn to preparing its suggestions, in response to the Connission's invitation, on how the Commis-sion's present regulations for handling disciplinary natters nigh; be imprcred.

Apropos, the special b:ard is pleased to report that counsel for each party in the special proceeding hcs consented to Ocntribute his cr her suggestions on the subject cnce the special proceeding is wound up~.

We think a date two nonths frca the date of the Connission's letter.:Ould be a reasonable ene to suggest to the Board.

A preposed letter to Chairnan Deale making this suggesticn and extending the Connission's appreciation for the Board's efforts is attached.

Attach.ents:

1. Decision 2.

Proposed Order

3. Proposed letter to Deale CC.

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THE COMMISSION:

Joseph M. Hendrie, Chairman Victor Gilinsky Richard T.

Kennedy Peter A. Bradford John F. Ahearne

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In the ha :er of

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CC':5 UMERS POWER COMPANY

)

Docke Nos. 50-229 3,

r_::n

.a. v Mcland Flan:, Units 1 and 2

)

(Special Proceeding) s

/

t'EM0PANDU" AND ORDER On November 7,1977 an Atomic Safety anc Licensinc Eoarc' was estaoiisned in :nis docket c preside over a special proceecinc.

The proceeding, in the nature cf discipiinary matters, was required by 10 n--

Lrr 2./10 C.

The Chairman cf the Atomic Safety and Licensint Board for the s;ecial proceecing (Special Ecarc; fc warced ic the Comissien by letter

c. "arcn,ci, tr/c a pleacing enti;iec

,,!,.c ion anc. qa. p u l ati on,.

dated March 12, 1978, which was executed by counsel for each party in the special proceeding and described the terms anc canditions of a prcposet settlement.

The Board stated that in its view the proposed settlerent was deservinc of cur consideration.

In essence all cf the Da-ties agreec Ic a settle'ent wnich wcLid

'nscfar as is Ocssicle clace al c a rt li! anc "e re:C"C '"

ne "O!"

icr A :achren: 2

2 Iney would have been if nothing had ever happened in this matter.

The terms withdrew all charges and would have terminated the proceeding with prejudice.

They further provided that (1) there would be no record of the proceedings nor of the charges and letters which led to them, and (2) notice of withdrawal of charges and termination of the proceedings would be published and also sent to all parties with whom there had been correscondence about the proceedings.

These features of the proposed set!Ienent seemed to us to be straightforward and worthy of Commission approval, and we so advised the Special Eocrd in our letter of April 2c, g

!!/v.

However, the final term of the settlement was unilateral in nature anc stated inat one party entered into the sticulation cnly on the coneition tnat tre Nuclear Regulatory Commission cay actual out-cf-pocket exoenses not in excess of 51,000 incurred by or on behalf of that party in connection wi:P the Special Proceedinc.

We fcund this final term to be unacceptable, and 50 informed the Special Boarc.

We stated:

An acency of the government is not as f ree as a private par:y it deal ir. a settlement.

There i.s a sericus cuestion whether tne Com7.ission has the lecal authority ir nese circumstances tc mcKe [sucr a payment].

Were Ine Cor-ission cisposed on policy grounds, to make this payment, the question of its authority Ic do so would first have to be resolved in the affirmative by the Comptrciler General.

We need not, however, seek a formal ruling of the Comptrciler because we believe that the proposal for payment is unsound on policy grounds.

On June 7,1975 the Chairman of the Scecial Ecard wrote to tne Cc--ission to notify the Cormissior. cf the status cf ine settienert

2 effort.

In essence, the party who had earlier recuired payment of expenses stated a willingness to settie without such payment provided that the Commission requested an opinion of the Comptroller General with respect to the Commission's authority to make such a payment ~and the Comptroller General replied in the necative.

After consideration of this new development, the Commission on August 30,197E aodressec a letter to the Como:rolier General which stated as follows:

The Nuclear Regulatory Commission has receivec a recuest, accompanying a proposal for Commission ap;roval of a settle-ment of a special proceeding, tha: the ComTission seek an opinion frcm the Com;; roller General witn respec to the f ol l ovii nt cuestion:

in connection with the termination anc se::lement of a special proceeding brough: to investigate charges against a private attorney and NRC staff

torneys, which termina: ion and settlemen results in a withdrawal and striking of all charges acains; all such attorneys, coes the NRC have autnority to reimburse a maximum of 51,000 in actual out-of-pocket expenses incurred on benalf of the orivate attorney in connection with such proceeding, when the NRC nas paid all fees anc expenses of the staff a torneys in connection wi n sucr proceecing, and Ine N::C celieves that the witncrawai, settlement and termination of the oroceecing is in :ne public interest?

The Commission hereby requests sucn an opinion.

s t,1+J : In OVnh

, co c tI'5 c h a e se e oro On Janua ry 10, 1979, the Comptroller Gener2D issued [d1 decision' > Sf'I

• 6 sh e 4 in this matter:

5-192754, " Reimbursement by Federai agency of Priva e c ? /wR A::crne;. fc-Out-of-Pocket Expenses ir ?;ency Proceedin;." The cc,;l; ior e

a C/M M0f reatnet by the Comptroller General was tnat there was no basis on whicn the T3C can reimburse the private attorney for out-of-pocket expenses in connection with the special proceeding brought to investigate misconduct charges.

This response in the negative from the Comptroller General satisfied the condition of the party, and by the terms set forward by the Earties a settlement agreement of til the parties has resultec.

The Commissien approves the settlement anc specifically apprcves and oroers the imple-men ation of terms one througn eight of :ne M: tion and Siiouiation of March Ei,197E as follows:

1.

all motions listed in A;pendiX A Cf the "o: ICD and $!ipulaticn of the Parties cf March Ei,1975 anc ali cleading, motient,

recuests and co;iications in this Sos. '. '-oceeding are deemeC withdrawn with prejuCice; 2.

all documer.:s su; itted in connecti:n with the proceeding In the Matter of Consumers Power Compaty (Micianc Plant, Units 1 anc 2), Dockt! lbs.59-329 50-33C anc all Darts C the Irans-Cripts Cf -he hearint thereon v:Li c' a"e. i s ted i n sai C Apoendix A are stricken from the recorc in tha. Proceecing; 3.

all orders and memoranda in connection with the above-menticned proceeding listed in Appencix E of cne Mction and Sti;ulation of Ma rch 21,197E are stricker f r>,- the reccrd in tha; ;rcceed-

'.g. and all charges agains a t:- car:y :t said Mcticn and StiOulation ContaineC in any sucn crcer Cr Demorancu~ ar.c

.z referred :: the Special Ecard, cr filed with that Ecart are dismissed with prejudice and may be considered to have no effect as if such charges had not been brought; 4.

his order shall serve to issue notice to the effect that all orcers and memoranda listed in said Appendix E are stricken and that charges contained therein have been dismissed with prejudice; E.

Eli cccuments submit;ec by the parties in connection with the proceeding before the Special Eoarc, all orcers by tha; Ecarc, all ccrrespondence by tha; Socrd anc all transcripts of any proceeding therecf shall be stricken f rc the reccrc and

ne recorc cf the Special Proceeding shall be stricken in its enti re:y',

6.

he Special Proceeding is hereby terminated; 7.

the Nuclear P,egulatory Commission or appropriate members of its staf' rhall furnish nc ice containing the languaoe se:

ferir in Acpencix C cf said Pction anc Stipulation of March 21, ig7E tc al' oersons ;c whcr the Commissicn or any member c' its staff d sseminated any letter, press release, cocunent or any cther information, describing, concerning or relating ;c the Special Proceeding or any natters at issue tnerein, informing ali such persons of Ine cispcsitier of the proceeding; anc 9

E E.

the !,'uclear Regulatory Comr.issien or aorrocriate merbers of its staff promptly shall provide counsel for the party specified in term 6 of said Motion and Stipulation veith copies of all written communications by the Commission or its staff with thirc' persons, other than parties to this proceec'ing or their counsel, describing, concerning or relating to the Special Proceeding or any other matters at issue inerein Ti Tc Uc^ V..nrprr.

^

FOR THE :0"" 55:07, S ' ' '. J E '

v.

CH th Secretary cf Ine COr-issi:n Datec at '.'a s ha ngten, D. C.

January IE79.

,_,F, u r.n Veientine B. Deale, Chairman Atomic Safety and Licensing Board for Special Proceeding 1001 Connecticut Avenue, N.W.

Washington, D.C.

20036

Dear Chairman Deale:

The Commission wishes to thank you and the members of your Board for your. extended and successful efforts to achieve a settlement.

As is clear fror our memorandum and order of this date, your formal assignment ir. this matter is at an end.

We take this occasion to state once again that we would appreciate naving the Board's suggestions with regard tc bow the Commission's present regulations for handling disciplinary matters might be improved.

We note that in your letter of March 21, 1978 you said that counsel for each party in the special proceeding had consented to contributing his or her suggestions on the subject, and we will be interested in their vievts as well.

le would like to nave all of the sugnestions presented to us by April 1, if. that is possible.

Sincerely, Joseph M. Hendrie D. airman kitaCF~er! 2

.