ML19301A360

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Suppls 811027 Meeting Discussion in Bethesda,Md Re Obligations Assumed by Party Acquiring Executive Interests to Mineral Estate.Util Cannot Lawfully Exercise Rights in Manner Detrimental to Nonexecutive Owner Interests
ML19301A360
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 11/02/1981
From: Pounds T
POUNDS, T.W.
To: Sells D
NRC
Shared Package
ML19301A361 List:
References
NUDOCS 8111120411
Download: ML19301A360 (2)


Text

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TliOMAS W. PO'JNDS

-s ATTORNEY AT law ..' ' ' "c4/'

13410 KINGSRIDE liOUSTON, TEXAS /7079 ,/

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NOV10198%d-w u. a November 2, 1981 /

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Mr. Donalri M. St.11s Nuclear Regulatory Commission g g g , g g' [73 Phillipe 1uilding 7920 t4o; folk Avenut Bethesda, Maryland 20014

Dear Mr. Sells:

I wou?d 3ike to express my appreciation for the consideration wnich you and Jay Guiterrez extended to me at our meeting in Bethesda on C0tober 27, 1981. I undarsccnd fully your limitations on becoming involved on a formal basis in e private dispute between an individual and the South Texas Nuclear Project, and I agree that our damaces are properly determinab3e through litigation to be initiated in the appropriate court. I would, however, point out again for your consideration that this matter does directly bear on safety considerations of the Project, and iu a situation of immediate, as well as future public concern. l Contrary to popular belief, the Project does n_o1 have l complete control over development of the minerals under the '

Project site. Ownership of executive rights to the minera) estat' does not vest in the executive the right to control l w.? c t n e.c o'. when the minerals will be developed, but rather R ants o.21y the limited right, to be exercised in a manner i i

consistent with the best interests of the nonexecutive, to l independently negotiate the terms of a lease when the l opportunity to lease arises. Within the scope of powers  ;

granted to t3e executive, of course, is the right to negotiate with the prospective lessee agreements concerning the use of the surface ,so Icag as, and oniv :n the event that, such agreements do not prevent, delay or otherwise impair the development of the mineral estate to the detriment of the nonexecutive royalty owner. The various cases that I left with Jay Guiterrez at our nieeting explain in more detail the obligations that ere assumed by a party acquiring the gCl g

executive interests to a mineral estate.

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I Mr Donald M. Sells November 2, 1981 Page 2 Because the Project cannot lawfully exercise its i executive rights in a mannar detrimental to the interests of th: nonex2ct:tive owners, if the e is cancern thet drillint or production related occurrences such as differential settlenent, overall lasc of elevatie' or hydrocarbon pollution >

of the cooling reservoir may affect nuo s'1faty a= pacts cf ,

the plant construction or operation, the itstending non-executive interests are an immediate saialy concern w'hich the NRC should consider at tr.e earliest poosible date.

  • This is particu) -ly true in view of the productive potential  ;

of the property ~.s indicated by the results of earlier drilling which we reviewed at the neeting, the apparent continuing policy of the Project to refuse to negotiate with prospective lessees or to permit seismic surveys on the property and the intentions of the nonexecutive owners >

to rr, quire the Project to properly discharge its duties as executive. If you desire further infcrmation on this s matter please feel free to call on me. i Very truly yours, C

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W.

Thomas W. Pounds TWP/ss cc: Mr. Jay Guiterrez i

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THOMAS W'. POUND 3 ATTORNEY AT LAW 3 t- '

13410 Kingsride '.)p Houston, Texas 77079 f g . , ~, ,

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Mr. Donald M. Sells l' Nuclear Regule6. ors Comrai esiott Phillips Building 7920 Norfolk Avenue Bethesda, Marylanc 20014

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