ML19331B196
| ML19331B196 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 01/06/1977 |
| From: | Jeffrey Temple DOW CHEMICAL CO. |
| To: | NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| References | |
| ISSUANCES-CP, NUDOCS 8007280782 | |
| Download: ML19331B196 (5) | |
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NUCLEAR REGULATORY COMMISSION In the Matter of the Application of N
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CONSUMERS POWER COMPANY
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Docket Nos. 50-329 1
50-330 (Midland Plant, Units 1 and 2 TO:
Lawrence Brenner, Counsel for the Nuclear Regulatory Commission staff r 7p The following are the answers of The Dow Chemical Company
("Dow") to the questions first propounded informally by the Nuclear Regulatory Commission ("NRC") in a letter dated December 17, 1976, and later, at the request of Dow, recast by the NRC as formal interrogatories in a letter dated December 30, 1976:
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ANSWER TO INTERROGATORY 1:
On November 11, 1974, Joseph G. Temple, Jr., General Manager of the Michigan Division, wrote a letter to Russell C. Youngdahl, Senior Vice President of Consumers Power, requesting that Consumers Power provide " adequate assurance that Dow can expect due performance" of Consumers power's contract obligations.
Consumers Power replied by letter on November 25, 1974.
Dow since has informed Consumers Power that its reply was not satisfactory.
On December 11, 1975, Dow wrote to Consumers Power stating that, before Dow took any " irreversible action," Dow was willing to discuss the situation to see if a solution, without further confronta-tion, was possible.
By letter of January 2.1976, Consumers Power agreed to discuss the situation in an attempt to " resolve any and all issues." There followed a series of meetings, called "the negotiations,"
the last one occurring on September 13, 1976.
THIS DOCUMENT CONTAINS 800'7280 7 p2 Q
POOR QUAL.lTY PAGES
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2 Despite news accounts to the contrary (see Ex. A, Dow Memorandum Regarding Hearing Preparation), Dow has not charged that Consumers Power has defaulted or breached the Contract for Steam Service, and has avoided taking any final position with regard to the validity of its contracts with Consumers Power.
However, Dow has never waived any rights it may have. ' Counsel for Dow have informed outside counsel for Consumers Power of this position and the circumstances upon which it is based.
Dow has made a determination that it will continue to honor its contractual obligations as Dow understands them rather than to pursue, at the present time, any other course of action.
Moreover, as negotiations between Dow and Consumers Power will resume in the near future, these issues may be dealt with through the modi-fication of existing agreements.
ANSWER TO INTERROGATORY 2:
The provisions of the contracts which are being renegotiated v,
are set forth in the Temple testimony, and in the Dow Mihutes of the negotiating sessions which have been produced.
The negotiations will begin again on January 12, 1977.
Dow is hopeful that the negotiations will be completed within a matter of weeks or less.
ANSWER TO INTERR0GATORY 3:
The Dow Minutes of the negotiating sessions held to date describe the positions of the parties in detail.
ANSWER TO INTERROGATORY 4:
See Answer to Interrogatory 1.
It is Dow's present position that it will comply with its obligations under the contract as Dow understands them, provided there are no significant changes in circum-stances.
Specifically, it will purchase a minimum of 2,000,000 pounds per hour of 175 psig steam beginning when the nuclear plant goes on
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stream in March,1982.
However, any significant change in circumstances will cause Dow to re-evaluate this pres'ent position.
ANSWER TO INTERROGATORY 5:
At the present time, Dow considers that December 31, 1977, is the latest date at which a decision must be made. However, this date may well be advanced as the result of Dow's forthcoming meetings with the Michigan Air Pollution Control Comission, or as the result of any other significant change in circumstances.
ANSWER TO INTERROGATORY 6:
It is certainly possible that Dow's present position could change in the next twelve months for any of the reasons posed in the question, and for other reasons, such as changes in the relative costs of coal and nuclear fuel, evidence suggesting further doubt regarding Consumers Power's reliability as a long-term supplier, and otherwise.
It is impossible to give weight to each of these events or reasons,
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as requested, because different ivid is undoubtedly would weigh them differently, and no co rate judg ent has b made.
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. TempH, Jr.
Vic esident - Mark ng Do emical U.S.A.
20 Building Midland, Michigan 48540 i
STATE OF MICHIGAN )
COUNTY OF MIDLAND )
I, Joseph G. Temple,
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Jo ph Temple, Jr.
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Subscribed and swon to fore..e this 6th day of n[iiry :/197.'
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jhN NUCLEAR REGULATORY COMMISSION G-[
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CONSUMERS POWER COMPANY Docket Nos. 50-329
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50-330 (Midland Plant, Units 1 and 2)
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CERTIFICATE OF SERVICE I hereby certify that copies of the Answers to Interrogatories submitted by the Nuclear Regulatory Comission Staff dated January 6, 1977 in the above-captioned proceeding, have been served on the attached Service List by deposit in the United States mail, first class, this 6th day of January,1977.
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L. F. Nute Senior Attorney The Dow Chemical Company Legal Department 47 Building Midland, Michigan 48640 Jdnuary 6,1977
Attachment:
Service List e
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,5 SERVICE LIST Mr. C. R. Stephens Chief, Docketing and Service Section Office of the Secretary of the Commission U.S. Nuclear Regulatory Commission Washington, D.C.
20555 Myron M. Cherry, Esquire Suite 4501
.s One IBM Plaza Chicago, Illinois 60611 David J. Rosso, Esquire Isham, Lincoln & Beale One First National Plaza Suite 4200 Chicago, Illinois 60603 2
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Frederic J. Coufal, Esquire, Chairman Atomic Safety and Licensing Board Panel D.S. Nuclear Regulatory Co=sission
. Washington, D.C.
20535 Dr. Enimeth A. Luebke, Member Atotaic. Safety and Licensing Board Fanel tiashington, D.C.
20555 Dr. J. Venn Leeds, Jr., Member 10807 Atwell Houston, Texas 77096 Ms. Mary Sinclair 5711 Summerset Street Midland, Michigan 48640 Mr. Sceve Gadler, P.3.
2120 Carter Avenue St. Paul, Minnesota 55108 6
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