ML19331A913

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Ack Receipt of 780503 Requests for Institution of Proceedings,Assessment of Civil Penalties Against Utils & Injunction to Prevent Sale of Part of Utils.Requests Denied. Commission May Review Determination on Own Motion
ML19331A913
Person / Time
Site: Midland, Fermi
Issue date: 06/06/1978
From: Case E
Office of Nuclear Reactor Regulation
To: Asperger R
AFFILIATION NOT ASSIGNED
Shared Package
ML19331A914 List:
References
NUDOCS 8007240494
Download: ML19331A913 (3)


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JUN 6 1978 D:cket do-a.iu.

50-341 THIS DOCUMENT CONTAINS

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POOR > QUAUTY PAGES Dr. nobert c. Asperger 12 Dennis Court Midland, Michigan 46640 j

Dear Dr. Aspergers This is in referenco to your letter of May 3,1978, in which you requested pursuant to 10 CFR 52.206 of the C=Mion's regulations that tna !arcicar acgulatory Cecr.tission take action on mattera related to two different facilities. The requests are discussed separately below.

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2e first request concerned the Enrico Fermi Attxaic Power Plane Unit 2.

You recuestod that the Cocunission institute proceedings against the Northern I

Michigan Electric Cooperative, Inc., ard Wolverine Electric Ccoperative, Inc., for violation of the Atomic Dwrgy Act and the Counission's reg-ulations. You also requested that civil penaltics be imoosed on the Cooperatives and their officers. You requested that sirailar action be taken against tim national R2ral Utilitias Cooperative Finance Corporation (CFC).

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250 reason stated for your requested action was that the Cooperatives and the CFC, by virtue of providing nortgage financing to the Cooperatives, had violated $50.10a of the Comission's regulations try "receivLvf a utilization fecility. You contend this viciation took place cccause the l

purenara by the Cooperatives of 20 percent unlivided interest in the reral 2 facility took place prior to the Cooperatives becoming licensees of the Cornission.

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As you noted in this most recent request, the role of the Cooperatives in the sale of an interest in the feriai 2 facility wa.s identified to the l

Comctission in your letter of Noresber 19, 1977. You regi>3sted at that time that action be taken against the Cooperatives for tneir role in this sale transaction. In my consideration of that reouest for action, I l

reviewed all aspects of the sale transaction incitajing the role of tne

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I determined at that time that the (w.wslate enforceracnt' action to

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take wita regard to the sale transaction was a Zetice of violation to 8vD '72 4 0-fs>

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i Dr. rebert G. Asperger !

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l the liconsee, Detroit Edison, and I so indicated to you in r.rf etter l

of March 3,1978. No additional enforcement action is required or

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appropriate.

You also requested that any application by the Cooperatives to become co-licensees of the Fermi 2 facility be denied because they willfully

" l violated tho Atomic Energy Act by purcnasing an interest in the facility.

i As I stated to you in my March 3,1978 letter at Page 5, there is no i

evidence to suggest that there was a deliberata attacpt to violate the Act..

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i Indeed, the question of whether co-owners sust be licensees ~ of'the ('emminaion.W '.i 1

was until very recently subject to divergent views. (Soc. narale Hill e

Nuclear Generating Station, Units 1 ard 2, AIAB 45),' February 16, 1978.)

Ccncequently, there is no basis to deny a license application for willful violation of the Atmic Energy Act.

,~g ne second facility which is the s'ubject of requested action in your f 1, I petition is Consumers Power Company's Midland Unita 1 and 2.

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quested that an injonction be ocught to prevent tha above-eentioned f,,'

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Cooperatives, the Cooperative Finance Corporation and the City of

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Lansing, Michigan fror.1 purchasing an interest in Midland Units 1 and-

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We reaoon given for your requested action is that the prospectivi. '

,p purcha ers are not co-licensees of the Midland facility.

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me purchase of an inteiest in Midland Units 1 and 2 by the Cooperatives ',

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the City of Lansing is still the subject of negotiation with Consdsurs

'"1-a, Power Coq;any. No sale has taken place. Therefore, since no; ownership /) ;

interest has been transferred, no violation of tne Atomic Energy' Act h.asj 1

%J occurred. ne parties concerned may still apply for and receive the j, 9) f j

approval frorn the Comission necessary to become licensees befora any'. '3I sale takes place. Moreover, the parties have.ceen informed that-such prioc>

approval is required. I have no reason to believe they will not cosely with the requirements of the Commission. Eerefore, an injunction is neither necessary nor appropriate ard this request is also denied. -

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A copy of this determination will be placed in the Camraission's Public. -

~ 'a Document Room at 1717 E Street, N. R., Washington, D. C. '20555; and the '

' gj Local Public Document icom for the Fermi Nuclear Plant and the Midland, Plant. A copy of this decision will also be. filed with the Secretary, j,,Q 4

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b Dr. Th ert G. Asperger,

t of the Corniscion in accordance with 10 CFR S2.206(c) of the Cocnission's

. :1 re;ulations..Under that provision, the cmnission may on its own notion review this deternination.

Sincerely, i

OdsC31 EI;**d 8lT l

. L G.Cd /

j Edson G. Case, Acting Director 4

Office of !!uclear lieactor Tegulation

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