ML19327A735

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Application for Extension of CP GCEP-1,extending Completion Date 6 Months to 900503 to Resolve Controversy Between Permittee & DOE Re Whether AlChemIE-DOE Transfer Agreement Satisfied.Fee Paid
ML19327A735
Person / Time
Site: 05000603
Issue date: 10/02/1989
From: Irving S
ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
To: Bernero R
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
25972, NUDOCS 8910170247
Download: ML19327A735 (4)


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L and Safeguards g Washington, DC 20555 Re: All Chemical Isotope Enrichment, Inc. (AlChemIE) Docket No. 50-603 AlChemIE Facility 1-CPDF Construction Permit i No. GCEP Dear Mr. Berneros By this letter, AlChemIE respectf ully requests an extension of the latest date of completion in the referenced Construction Permit, from the current date of November 3, 1989, to May 3, 1990, an extension period of six months. This request is necessary due to circumstances.beyond the control of AlChemIE

,which will make it impossible for us to complete facility modifications by the November 3 date.

In support of this request, AlChemIE would show the following:

1.- As the NRC is aware from previous controversy presently exists 'between A$leadinChemIE a'd n DOE on whether the AlChemIE-DOE Technology Transfer Agreement has been si.:t i s. i ed. AlChemIE f eels 2 t has, inasmuch as A1ChemIE has now Diven to DOE a D&D bond which is in the amount of $5.07 Million and which appears to be satisf actory in amount and form. This bond was tendered to meet the DOE DtD bonding requirement which was imoosed by DOE on A1ChemIE on February 28, 1989, eignrteen days after the NRC awarded A1ChemIE the referenced construction permit. The DOE-AlChemIE contract is in the dispute resolution process, but I cannot acr:urately predict when these matters will be resolved.

2. Until the contract dispute is resolved, AlChemIE cannot lease or occupy CPDF, the DOE-owned facility which is the situs of CP No. GCEP-1. The language of the lease between the parties has been agreed upon, but the lease aarnement has not been ci0ned. Ny 8910170247 891002 ,

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A PDC Mne Ridge Office Park. Suite 202-B 702 Illinois Ave.. Ook Ridge. TN 37830 (615) 482-0029

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j ik ,No harmLto any party in interest'should-inureifrom A1ChemIE has agreed not'to O- :the' requested extension 1.

take' possession'of Classified Gam' Centrifuge Equipment'

_The public wit,hout appropriate prior notice to NRC.-

l policy. benefits of this' Technology Transfer effort are enormous and merit the requested extension. The i actions of DOE in endeavoring l unilaterally to declare  !

. the Technology Transf er Agreement terminated are in

' breach of the spirit and letter of the agreement and of

-public policy, but A1ChemIE has no control over the l actons of DOE and has to resolve these-issues through- 'i

' negotiation and, perhaps, litigation.

4. DOE has an implied duty of cooperation in the

' furtherance of the referenced agreement, and has-violated this duty. As a result, A1ChemIE has been unable to occupy CPDF or to perform necessary modificat, ions. .

5. .A1ChemIE:has requested a hearing on the NRC's pleading seeking for AlchemIE to show cause why the referenced CP should not be suspended, modified,-or revoked. A1ChemIE verily feels it can show good cause why the contemplated action should not'be taken.
6. The requested extension is in the best interests of' the American people and in furtherance of our nation's strong policy supporting- Technology Transf er cif orts..

AlchemIE has expanded significant resources and funds '

in the obtaining of the referenced CP, which is'a business-asset to the company and which is nececsary f or our business to proceed. The requested extension will not harm any interest and will preserve the '

opportunity for a valid and successful technology transfer.

7. The requested extension should provide adequate time for issue resolution between A1ChemIE and DOE and also provide time for A1ChemIE to perform necessary facility modifications, as agreed between A1ChemIE and NRC.

B. A number of matters are pending in A1ChemIE's Reorganization Action and with DOE which could resolve The the issue of the necessity of the necessary CP.

NRC and A1ChemIE have diligently and intelligently worked to effectuate the necessary permits for this novel Technology Transfer effort, and these efforts should be rewarded if at all possible for the benefit of all concerned.

9. A1ChemIE is endcavoring to resolve its disputes with DOE through meetings with DOE-Washington. These efforts are continuing, and A1ChemIE verily feels the negotioations have a reasonable chance for success.

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P 10. AlChemIE is doing everything within its power to resolve the issues with DOE, but.the actions of DOE are beyond the power of A1ChemIE to control and A1ChemIE verliy feels that DOE is erroneous in its actions on  :

ithe contract and that-justice will ultimately prevail ,

and the Technology Transfer will be able' to go f orward, t

.For the reasons aforesaid, A1ChemIE respectfully requests a

-.six-month extension-of the latest dato of completion on the referenced Construction Permit. If NRC deems it appropriate, AlChemIE will provide additional information and evidence'at a '

hearing on this request for an amendment / extension of the

' referenced CP.

Mr. Bernero, .throughout this novel and difficult Technology l- ' Transfer. effort, A1ChemIE.and NRC have worked to see that this important project can go f orward with f ull conformity to Regulatory Requirements and in a f ashion which protects National Saf eguards and Security interests. NRC has oeen a very fair End intelligent agency to deal with, and NRC has shown an appreciation of the importance of this Technology' Transfer.

I think the rr. quested extension is at- the least a "No harm, no foul" situation and it is truly necessitated by actions beyond the abilityfof'A1ChemIE to control. The company has satisfied all original requirements.of.the A1ChemIE-DOE contract and we have satisfied additional requirements unilaterally imposed upon

.us by DOE. Wa-have satisfied our compliance requirements, and given these circumstances, DOE should yoild to the public policy and l eg al considerations which favor AlChemIE's position.

This is a. controversy between A1ChemIE and DOE in which,

. regrettably, an adverse NRC decision cuuld be dispositive of the opportunity without the A1ChemIE-DOE .nsues being fairly detarmined on their merits. Should you need any additional information on this matter, please contact me at A1ChemIE-West,

.. at Route 7, Dixon-Road, Lenoir City 37771. This will be the

! address from which our Strategic Planning Group will be 1 conducting A1ChemIE operations for the next 30 days.

Thank you for your attention to this matter. I enclose with p this letter a check f or $150.00 to cover costs of filing this request.

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RESPECTFULLY SUBMITTED,  !

l' ALCHEMIE, INC.

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