ML19331B105

Supplemental Response to Intervenors' Interrogatory 1 Re Status of Negotiations.Meeting Re Latest Draft of Contract, Decommissionning & Site Restoration Costs Held on 780407.W/ Documentation & Certificate of Svc.Related Correspondence

ML19331B105
Person / Time
Site:	Midland
Issue date:	05/12/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:	AFFILIATION NOT ASSIGNED
References
NUDOCS 8007250797
Download: ML19331B105 (1)

Text

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UNITED STATES OF AMERICA lf ft

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In the Matter of )

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CONSUMERS POWER COMPANY ) Docket Nos. 50-320 M30

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(Midland Plant, Units 1 and 2) )

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SUPPLEMENTAL RESPONSE OF CONSUMERS POWER COMPANY AND THE DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVENORS OTHER THAN DOW .

Consumers Power Company ("Licersee") and The Dow Chemical Company ("Dow")

submit the follewing supple = ental answer to that portion of Intervenors' Other Than Dov ("Intervenors") Interrogatory No.1 related to the status of negotia- _y tions between Licensee and Dow. Intervenors' Interrogatory was directed to both -

Licensee and Dow. THIS DOCUMENT CONTAINS QUESTION P00R QUAUTY PAGES 1

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l. Testunony in this proceeding thus far has indicated a dispute between Consumers and Dow Chemical Company (Dow) relating to the construction of the Midland Nuclear Facility and sale and purchase of steam and electricity from said facility. All or a portion cf the Dow-Consumers contracts have been iden-tified or attached in written testimony of Consumers' witnesses in this pro-ceeding, Messrs. Keeley and Howell. With respect to any dispute concerning such contracts between Consu=ers and Dow please state the following:

(a) Describe in detail the nature of the dispute and the status of any negotiations to resolve said dispute. If it is your soonso 7TG7 g

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• 3 position that no dispute exists, please state the basis therefor in light of the cross-examination testimony of Dow witness Temple, includ-ing but not .

limited to the disclosures made by Mr. Temple of meetings S between Consumers and Dow arid their representatives in September, 1976 wherein suggestions of lawsuits were made, as well as correspon-dence between Youngdahl and Temple during 1975 and 1976 which has already been produced by Consumers. .

ANS'JER In accordance with the schedule provided with the earlier Supple = ental Interrogatory Response dated May 3 and 4, 1978, Licensee and Dow met at Consumers Power's offices in Jackson, Michigan, on May 4, 1978, and at Dov's offices in Midland, Michigan, on May 5, 1978. Attached to this Supplemental Interrogatory Response as Exhibit "A" is a summary report of those meetings.

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Stephen'H. Howd.1, ? ice President Projects, Engineering and Construction ^

Consumers Power Company ,

al D. Dick Define -

Manufacturing Manager Michigan Division Dow Chemical U.S.A.-

Stephen H. Howell, being duly sworn, deposes and says that the foregoing

• Supplemental Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow is true to the best of his knowledge and belief.

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' &; , p. ~ .h,a M 6 - *-- N Stephen H. Howell

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STATE OF HICHICAN )

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COUNTY OF JACKSON ) S Subscribed and sdorn to before me, a Notary Public, this 12th day of May, 1978.

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Sylvia 3. Ball Jackson County, Michigan My Commission Expires: April 13, 1980 D. Dick DeLine, being duly sworn, deposes and says that the foregoing Supplemental Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow is true to the best of his knowledge and belief.

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D. Dick DeLine w

STATE OF MICHIGAN )

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COUNTY OF MIDLAND ) _s Subscribed and sworn to before me, a Notary Public, this 16th day of May, 1978.

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Connie K. Miller /

Midland County, Michigan My Commission Expires: August 16, 1981 3 - . r c- .- , .-- -,-4,-- , g

,, Exhibit

(^ "A"

_CONSU:fEP.S POWER-DOW REOPE"ED NECOTIA -

Date of Meeting: .

May 4 and 5, 1978

Subject:

Minutes of Nuclear Contracts Negotiation eeting M

at Jackson and Midland, Michigan Present:

Ihe Dow Chemical Company:

Consumers Power Company: DDDeLine, LUPribila, JRBurroughs SHHowell, LBLindemer, CSKeeley Prostnt as Draf ting Co=mittee and for o The Dow Chemical Company: ccasional consultation:

Consumers Power Company: PDConner JLBacon Present on as Technical May 4, 1978: Committee during p ,

ortion of the meeting Consumers Power Company:

BWMarguglio, RLJohnson, TJSullivan The parties met Mav 4 at Jackson.

page to resolve anj-agreed to precoed with the prev 1ous contract es dThere item.' left open. raft directing attention page by

1. -

Dow made a report about housckceping items. the corporate changes at Dow.

2. There were no other Mr. DeLine made an extensive re At Dow's invitation, Consumers' port on Dow's program of product s p. steward the session and asked questions toc whi htechnical people attended was discusr.ad at of this portion parties nas explored. length and its pcrtinence to the relationshiMr. The program DeL p between the 3.

Mr. Howell reviewed the larcst projectio Midland construction based upon Sechtel review thereof, s Foreca t Nn of costs and schedul -

remains at $1.67 billion and the most probable The budgetcomlhe matter w have not changed from :brch,1981 and March , 1982. mercial operation dates 4.

editorial changes.The parties ccamenced their review of the co t site-sensitive costs Discussion was had in determining with reference the allocat d to the n defi itin ract agr$

on of e

further considered the allocation of the opesteam investment. They and nuclear insurance expense and the annual charge. backupration and mai tion was not reached on the last Final resolu-further consideratian to cach other's positithree on. the items parties but are giving 1

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The parties unabic to comediscussed to agreement.the section on insurance and indemnit y but were They agreed at matter overnight and to reconvene on May 5 at Midland that point to consider the 6.

At convening of the cegntiating session at Midland on, Dow Mayindicated' 5

that it had given consideration to the idea of operati exchangers in any event, but thatott was strongly disinclined to do so and ng the tertiary he2t indi cated taat, eventual determination would take an additionalThe parties did not discuss that matter further. .

an six =enth

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The parties resumed the discussion of expenses, and the annual backup charge. a n the sections nucicar insurance the situation and attempt It was agreed that Consumers would review indennity sections on Monday, to redraft May 8. the radioactivity and insurance and Other relatively minor matters At the conclusion of the session the parties o ved.agreed c on on insurance difference between the parties and that both of review their parties draft by Consumers the first part of the week .

of May 8 revised

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It was agreed that Consumers would also redraft the electric contract ezetion Revised pages are to be forwarded to Dow on or ab .

ct.

9s The negotiating session adjourned with no date set againparties The agreed to exchange drafts pro =ptly for another session.

as necessary. , cc =unicate freely and meet s

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UNITED STATES OF AMERICA N ^C ,% w .,s NUCLEAR REGULATORY COMMISSION Q [t b;fg Before the Atomic Safety i!k s 1 y \Q]. Y ',;2..

and Licensing Board h4 - ,,,.t y,Y h e

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• • /,,sd In the Matter of

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CONSUMERS PC'w'ER COMPNiY )

) Docket Nos. 50-329 (Midl.ind Plant, Units 1 and 2 50-330

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CERTIFICATE OF SERVICE I hereby certify that copies of the attached "e=Suppl ental Response of Consumers Power Company and The Dow Chemical Company t o Interrogatories of Intervenors Other than Dew" dated May16 , 1978

, were served upon the individuals whose na=es appear on the attached Service List by d eposit in the United States nail, postage prepaid and properly addressed

, on the 16th day of May,1978. ^

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Connie K. Miiler

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The Dow Chemical Ccmpany 1.egal Department P.O. Box 271 Midland, MI 48640

\ttachment: Service List 3 ate: May 16, 1978

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SERVICE LIST  : '

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Marshall E. Miller, Esq., Chairman Atomic Safety and Licensing Board Richard K. Heefling, Esq.

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U.S. Nuclear Regulatory Ccamission Ccunsel to MRC Staff Washington, D.C. 20555 Nuclear Regulatory Ccmmission Washington, D.C. 20555 Dr. J. Venn Leeds, Jr.

Atcmic Safety and Licensing S. card Caryl A. Bartelman, Esq.

Ic?^7 Atwell ' Michael I. Miller, Esq.

Houston, Texas 77096 Isham, Lincoln & Seale One First National Plaza Dr. Emmeth A. Luebke.

Atomic Safety and Licensing Scard U.S. Nuclear Regulatory Ccmmission Atcmic Safety and Licensing Board Washingten, D.C. -Panel 20555 U.S. Nuclear Regulatcry Ccemissicn Myron M. Cherry, Esq. *

One ISM Plaza Chicago, IL 50611 Atomic Safety and Licensing Appeal Panel Judd L. Bacon, Esq. U.S. Nuclear Regulatory Ccmmissicn Washington, D.C. 20555 Censumers Pcwer Ccmpany

• 212 West Michigan A;enue -

Jackson, MI 49201 Docketing and Service Section Office of the Secretary s Ms. Mary Sinclair U.S. Nuclear Regulatory Cecmissien Washington, D.C. 20555.

5711 Summerset Street ,

Midland, MI 4S640 Harold F. Reis, Esq. .

Robert Lewenstein,. Esc. -

Lowenstein, Newman, Reis &

Axelrad 1025 Ccnnecticut Avenue '

Washington, D.C. 20036 Mr. Steve Gadler 2120 Carter Avenue St. Paul, Minnesota 55108 Ucrton Hatlie, Esq. .

Attorney a t Law ~

P.O. Box 103

• Navarre, Minnesota 55392 -

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