ML19331A787

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Forwards Nc Brown & Encls Re Facility Financial Impact on Dow Chemical Co for Review & Comment
ML19331A787
Person / Time
Site: Midland
Issue date: 10/11/1977
From: Griffin R
SENATE
To:
NRC OFFICE OF CONGRESSIONAL AFFAIRS (OCA)
Shared Package
ML19331A785 List:
References
NUDOCS 8007230818
Download: ML19331A787 (6)


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11 1%hington, D. C.,

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t-Respectfully referred to v

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Congressional Liaison Nuclear Regulatory Commission I would appreciate a review of the matter de-

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scribed in the attached letter.

Please send me F

an appropriate report and return the correspondence.

Thank you, a

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a 4 VUtility called ' dishonest s

By SANDR A L DfCKEY l

Dady News staff writer in s t a nces. that there may hate been Intervenots sim dar ploys w hich were successful' dred mdhon coHars worth as a punish.

opposing the nuclea r pla n t h ere h.i s e asked the A t o m ic imdings Cherry said in hght of the boa rd's w euld w+rk an out of pr oportion ment I

Safety and Lawnsmg Doard sanctions should be injustice on thou who t ASI H) to penalare Consum er s Power against Consumers imposed provide the w di ultimately for its "outr whr dishonesty" during aCompany uvd money

  • the boa r d' contin-

"l he board ha vmg found that hearmg on the there phnt is a

Cherry callrd the boa r d 's decision suspicson. esen a

?n a letter. Intersenor that r

atterney My-unres caled dnhonestpresumpimn.

'a rule of la w w hich icwards dishon-j ron M Cherry < alled f ir ac tion agamst b+ en successful I should thmk that the esty and mnney and doesn i do ploys have the utihty hawd board has to move further much to i

fmdmgs scry on board's hept 23 decision.

score. ' Cherry said.

on that t io n. '

en ourage pubhc in the t

participa-In that dechi"n. which effectively al-Mea n w hile. Consumer s

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lowed construrtmn to contmue at quested that the ASLH delete language

,,I cannot help y conylude Wat we has re i

plant. the AStit made several com-the

  1. wa lot o unw Cherry said.

in the decision which " suggests that

.That dectuon imds for the I n t e r-ments about Consumers' " questionable pletely <> pen. g we were tryin to be less than com-tartscs" durmg the hearmg

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according to spokesman. Michael Koschik, u t ilit y sue.

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llowever. the So.d did not judge that the inophobly conc ludes j-j h

Consumers guilty nf wrnngdoing or i "We are askmg them to consider re-Licensing Board is powerless

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pose sanctions against the company. m-um moving that language from the y any of the defects because """""

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f the amount of money that has been 3~

The board sa (f

that Consumers id there was evidenceder,"Koschik said. "Obviously we do WE3) or-

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not agree miht that part of the order..

In spite of the board's statements. it Every utility which has a construc-

- Atti mpte d in keep "importa nt facts from the board.

did not penalize Consuemrs in the dect'

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- Wa nted to " finesse *,

sion making process.

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p every utdity -is that if they spend that b~ e h 9 3 7

with Dow ( hemical ( ompany.the dispute The decision to (

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-rinue construction mented' *

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'k money fast enough not even a Court of II '

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- Proposed a was made in large pas t strategy to " drag mdlion already spent on building the Appeals decision can be fairly imple. *k feet" in the hearing process as long as herause of 5600

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construction contmued plant (sunk costs), the ASLH said.

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- Tried to obtam a Dow witness whoflowes er, previous decisions Cherry referred to the court decision

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., $' I dispu'e The dispute refers to I)ow's de-was not aware of the Dow Consumers Nuclear Regulatory Com mission in July IU6 w

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4.. ; J (NRC) not adequately consider enviorniaental '

say sunk costs should not be 9,.

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casion that the nuclear plant would be when " adverse" informa. issues in giving Consuemrs a license to -

n-considered pg dnadvantageous to the company and a tion has been withheld by a Licensee budd the Midland plant. The court or- :

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G-threat by Consurners of a 5600 milhon

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The board states that Consumers' a.

dered more 4

have taken place. hearings none of which I' pps

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law suit-tivities "may be the kinds.

None of these proposed strategems Commission (NRC) had in mind in de-Cherry also asked the ASLB to post-4

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scrthing the situation where the use of pone scheduling the terrenors could " consider

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= ' ',,p.,%, 3 "Of rourse there remarded hear.

7 sunk costs is unjust-

,.g args for at least 30 days so that the In-s

'. W J V, remams the suspi-If so, we decline cion. raised by the disclosure of these in this instance to ignore sunk costs /

Court of Appeals." options, includmg going directly to the. 6,# f*u l.p d,D our other g

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"We think that to ignore several hun-

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By STAN BENJAMIN WAhlflNGTON (AP) standstill in the past two years

- The Presi, beca u se

. partly dent's Council on Ensironmental Qual-he said. of serious, unsolved prahlems, safety contamed for geologic periods '

ity s;nd today that the na tion should Speth said one of f

he said.

l-prose it can d o.p<we of Speth said the council propo.ed set-i radioac tis e the most wrious wastes safety. or stop building nuricar problems is the unresolved question of ting two deadlinee s

first, to devise power plants.

what to do w ith radioactive waste from way to dispose of nuclear I

a The safely. then to try the method and dem-enuncil recom mended that wastes j

reactors and fuel processing pla nts, the gos ernment which must be isohted for as long as a onstrate that it works.

set a deadline to demon-strate that it half milhon s cars.

If either deadime is missed. "no new

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ran get rid of nuclear w astes without endange ring the puhhc nuclear

We thus power licenses would be is-favor a national decisimi sued.'

health. It also ralled for adoption of a which would make the expanded use of mean bannmg the start of constructionhe said. That would eff national pobey to change the base nuclear power contingent on a cl( ar the economy from nuclear and fossil and convincing showing... that nuclear n new nuclear power plants until the of fuels to solar energy w ste disposal problem is solved.

po wer 's deadly by products The recommendations were unveiled But Speth also said the council is not 7

can be by ' counc il happy member Gus Speth, in a with coal as a major power a

7 spers h prepared for delivery at a con.

plant fuel, because of its significant pol-ference of the American I.a'w Institute lution probiems.

and the American Bar Association.

For that reason, he said, the council Speth s.od in an mcommended amending present nucle inter vie w that he was council. w hose function is t : advise themakes debut utility applying to build a new powerar licensing requirements

  • pe d mc for the three member President on environmental is lone wo Id h ve 1o shew hot ther-lie said the recommendations has e tures. "y N Midland Daily News fea sues.

Toda was no feasible conservation or solar been circulated et.in the Carter ad Invitatmn to Sight and Sound.- alternative for satisfying the projected tried to brng them to the President'smimstration bot t'ee council has not yet and gallery events in Midland.a special supplement of theater mus'ic incre se in electrical demand.'

Speth. said that in the long run, the

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r personal attention.

The tabloid contains feature stories nation should tarn away from both nu-i Spe

clear and coal energy and rely mort a former citi7en environmen-on new programs and performers.

tal. crivist. said in his speech that the heavily on energy from the sun.

contains a It calendar for r" (! car industry is in trouble. Power year as well as news stories on the Mid-the coming R ecent developments indicate th pia n t solar eg,my can beconn a signi land Center for the Arts and its pro-orders have come to a near-factor much more rapidi g

gra m s.

considered possible,g than heen be se adding:

1 "The time is ripe for a rLational #

icy recognizing solar as our highet pd ority energy supply option and MM the transformat6on of our ecoa88BJ W one based increasingly oe the sash O

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F By SANDRA L. DICXEY l

Daily News staff writer Dow Chemical Company's Michigan Division is stdl counting on the Mid-land nuclear plant to provide its sourc s_.

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of power by early 1952 ager Hunter W. Henry s. General M e

In res aid today.

News. ponse to questions by the Daily Henry issued a statement chase process steam from th The statement came four days after the federal Atomic Safety and Licens-ing Board (ASLB) released its decision allowing continued construction of the j-plant.

"Dow is relying on statements of

. * " g* - t Consumers Power Company that proc.

a Midland nuclear plant in Marc its energy plans accordingly."

F "The recent decision of the ASLB continue construction pending the re-manded hearings fon environmentalis-sues) pletion of the plantremoves an obstacle to 3

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Henry continued.

by that date."

The AS LB decision followed a lengthy and controversial hearing, dur-ing which Daw's intention to purchase tioned repeatedly by attorneys. s

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Dow witnesses ed a picture of two comat the hearing paint-F

' e' is smar.y while keepans panies fightip Internall artraendiv rab-The witneves. Dow U S. A. Presi-ent Paul F. Oreffice, and former divi-Temple Jrsion General Manager Josdph G Jgnger wou., said Qnuclear plant nq, ld be an advantage tN

/ Ace'EddiDo7mple currMitTy ITo/

r U.S.A. director of marketing. the com.

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pany's decision to remain committed T5 liGefear steam was mareleca 3 SMO millionMsuit thrsterie'd by

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%lh Dow Tifficials $diTth3 confidence that the nuclear plant would be built by 1982 for a cost of g

$pAlso during the h 67 billion.

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earing. Dow at' torneys told the ASLB the compan was considering a lawsuit against Con-s 4.-.'

s sumers on the validity of a 19M steam, contract /

The c6ntract estimates the plant's'op.

y r-eratior. date at March 1930, but Con-j The utility later announced the co npletion for 1931-82.

I Meanwhile. Dow has agreed to con-form by 19R0 to strict air pollution standards imposed by the Michigane_._.

_j Air Pollution Control Commission (MAPCC).

The company since then has nego-

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tlated a new agreement with the MAPCC in which it must switch to 7

cleaner burmng oil as a fuel for the di-7

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vision power plants in 1980. The com-1 pany then will burn oil until nuclear

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steam is available in 1982.

lion in capital improveThe oil switch will creasing the enmpany'ments plus m-bil I - - - ~ s annual fuct 77 o"f C.a.I 4.d ]

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