ML19344A137
| ML19344A137 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 12/08/1977 |
| From: | Decline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO. |
| To: | |
| References | |
| NUDOCS 8008060410 | |
| Download: ML19344A137 (12) | |
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- I UNITED STATES OF AMERICA NUCLEAR REGULATORY' COMMISSION y
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Before the~ Atomic Safety and Licensing Board' In the Matter of CONSUMERS POWER COMPANY
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Docket Nos. 50-329
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50-330 (Midland Plant, Units 1 and 2)
' SUPPLEMENTAL RESPONSE OF CONSUMERS POWER COMPANY AND THE-DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVENORS OTHER THAN DOW Consumers Power Company (" Licensee") and The Dow Chemical Company.
("Dow") submit the following supplemental answer to that portion of Intervenors' Other than Dow ("Intervenors") Interrogatory No.1 related to.the status of negotiations between Licensee and Dow.
Intervenors'
-1 Interrogatory was directed to both Licensee and Dow.
QUESTION 1.
Testimony in this proceeding thus far has indicated a dispute between Consumers and Dow Chemical Company.(Dow) relating to the con-struction of the Midland Nuclear Facility and sale and purchase of steam and electricity from said facility.
All or a portion of the Dow-Consumers contracts have been identified or attached in written testimony of I
' Consumers' witnesses in this proceeding, Messrs. Keeley and Howell.
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With res t to any dispute concerning such contracts between Consumers
! 8008060Y/p and Dow p ease state the following:-
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_ (a)- Describe in _ detail the nature of the dispute and the status 'of any negotiations to resolve said dispute.
If it~is your.
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position that no dispute exists, please state the basis therefor in a
light of the cross-examination-testimony of Oc.1 witness Temple, 5
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including but not limited to the disclosures made by Mr. Temple of meetings between Consumers and Dow and their representatives in l
September,1976 wherein suggestions of lawsuits were made, as well-4 as correspondence between Youngdahl and Temple during 1975 and 1976 which has already been produced by Consumers.
I ANSWER f
In accordance with_ the schedule provided with the earlier Supple-
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- mental Interrogatory Response dated November 4,1977, Licensee and Dow l
met at Dow's offices in Midland, Michigan, on December 8,1977.
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- Attached to this Supplemental Interrogatory Response as Exhibit "A" is. a summary report of that meeting.
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Stephen H. Howell,-Vice President j!
Projects, Engineering and Construction Consumers Power Company A
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.D.-Dick DeLine Manufa'cturing Manager Michigan Division 3
Dow' Chemical'U.S.A.
Ste' phen H. Howell, being duly sworn, deposes and says that the
,r foregoing Supplemental Response of Consumers Power Company and The 1
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' 3-Dow Chemical Company to Interrogatories of Intervenors Other than Dow is true'to the best of his knowledge and belief.
E%L-D-O.N,M StepheQ.Howell i
STATE OF MICHIGAN ~)
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. COUNTY OF MIDLAND )
Subscribed and sworn to before me, a Notary Public, this 8th
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Connie K. Miller Midland County, Michigan",
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My Comission Expires: August 16,.1981
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3 D. Dick DeLine, being duly sworn, deposes and says Mat the fore-going 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, b* b4 b, $-
- 4. Dick DeLine "
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-STATEOFMICHIGAN) ss.
COUNTYOFMIDLAND)
Subscribed and sworn to before me, a Notary Public, this 8th day of December,:1977.
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d3 h e K. Miller Midland County, Michigan. / -
My Commission Expires:'.'Augu;st'16;'198'1
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PROPOSED AGENDA _
CONSUMERS POWER-DOW MEETING December 8, 1977 I
1.
Tittabawassee River Water Quality Stando-ds 2.
Housekeeping Items 3.: MAPCC Update 1
- 4. : Outstanding Assignments f
A.
Drafting Electric Agreement 1.
Consumers 5(a),5(e),5(f) 2.
Dow - Remainder of Agreement B. -Drafting General Agreement 1.
Dow - Agreement with regard to Real Property y
2.
Consumers - Remaining parts of the General Agreement d
previously agreed to retain t
a.
Licensing assistance-l' b.
Target comercial dates c.
Plant concept, design, construction and operation C.
Technical information prepared by Consumers
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. 5.
Open Items from Previous Meetings A.
Final date.
B.
Rates for interim steam C.
Objective standard for comercial operation for steam D.
Dow paying demand charges when not being supplied process steam.
E.- Definition of Dow facility for Steam Contract F.
Right of Dow to buy steam above 4 million lb/hr G..- Allocation of stretch steam.
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i Exhibit N,
D p.c pgS,t 2 \\Sil # b CONSUMERS POWER-DOW REOPENED NEGOTIATIONS
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Date of Meeting:
December 8, 1977 4,
Subject:
Minutes of Nuclear Contracts N.egotiation Meeting at Midland, Michigan Present:
The Dow Chemical Company: DDDeLine, LWPribila, JRBurroughs Consumers Power Company: SHHowell, LBlindemer, GSKeeley Dow proposed the attached Agenda which was agreed upon.
4 Agenda Items 1.
Tittabawassee River Water Quality Standards John Gledhill, Dow's Manager of Environmental Services, described for Consumers the Water Quality Standards imposed upon Dou by its NPDES Permit and the manner in which Dow operates within this permit. For this portion of the meeting, R. A. Gaska attended for Dow and R. W. Montross and P. C. Hittle ' attended for Consumers.
2, Housekeeping Items Witn respect to the Minutes of the meeting of November 30 and specifically on page 2, Section c(1)b, Consumers pointed out that the wording at the end of the sentence did not reflect the concept of the parties accurately.
It was agreed that the total sentence should read "...Related in some manner to the return on electric business authorized by the Michigan Public Service Commission."
i 3.
MAPCC Update Dow updated Consumers on the lawsuits it has filed in the Midland Circuit Court and the Michigan Court of Ap Michigan Air Pollution Control Commission. peals against the
. 4.
Outstanding Assignments A.
Drafting Electric Agreement 1.
Consumers distributed copies of their proposed drafting of the Electric Agreement, Paragraph 1 and Paragraphs 5(a), 5(e),
and 5(f).
Dow expressed some preliminary reactions and the matters were discuswd with Consumers then agreeing to resub-mit revised proposals.
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2.
Dow distributed the remainder of the Electric Agreement and
'l discussed the reasons for their proposed' revisions of Consumers
earlier proposal.. Consumers agreed to respond to the proposed revisioins at a later date.
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B.
Drafting General Agreement 1.
In response to Consumers' earlier propr% 1 regarding Dow's right to repurchase certain portions c7 the site, Dow pre-sented Consumers with a draft which incorporated Consumers' 2
earlier proposal and added same provisions.to make it complete. Consumers agreed in general with~the Dow pro-j posal and will respond in 'more detail when they have had
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an opportunity to review the draft.
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1 2.
Consumers next presented Dow with an outline for a proposed 1-agreement which would include the entire agreement of the L
parties except for a separate Electric Agreement.
In addi-f tion, Consumers presented Dat with a preamble to this agreement and paragraphs entitled:
1.
CONSTRUCTION OF GENERATING PLANT
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A.
Generating Plant Description l
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B.
- Target Connercial Operation Dates j
C.
Responsibility for Design i.
2.
LICENSING AND OTHER ASSISTANCE C. i; Technical Information Prepared By Consumers Attached is a letter dated D'ecember.1,1977, from S. H. Howell to D. D. DeLine. The parties discussed the technical items
- 1 through 5 included on page 2 of said letter.-
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5..
'Open Items from Previous Meetings l.
A..
Final Date e
1 Both Consumers and Dow presented their respective positions on the concept of a' final date. Neither parties' position
.had changed significantly from that expressed during previous
- negotiations.- 'In view'of the disagreement between the parties, it was agreed to defer this matter for later consideration.
~ B.
Rates for Interim Steam Dow presented' Consumers with.a proposal for the purchase of this commodity. Consumers will review the Dow proposal and reply to Dow at a future meeting.
C.
Objective Standard for Commercial Operation for Steam Consumers reviewed its problems with the Dow proposal on this
. subject which had been transmitted to Consumers et a previous negotiating meeting. - In view of Consumers' problems with.the Dow proposal, it was agreed that Consumers would prepare a l
counter proposal for Dow's consideration.
The remainder of-the items on the attached Agenda; namely, SD, 5E, 5F and SG, were not discussed.
NOTE:
At the conclusion of the meeting, the parties agreed to nego-tiate on December 21, 1977, in addition to the regularly scheduled meeting to be held on December 22, 1977.
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PROPOSED AGENDA CONSUMERS POWER-DOW MEETING r,..
c December 8, 1977 1.
Tittabawassee River Water Quality Standards 2.
Housekeeping Items e
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3.
MAPCC Update S$#
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- 4. ' Outstanding Assignments A.
Drafting Electric Agreement g
1.
Consumers 5(a), 5(e), 5(f)
'2.
Dow - Remainder of Agreement B.
Drafting General Agreement 1.
Dow - Agreement with regard to Real Property 2.
Consumers - Remaining parts of the General Agreement previously agreed _to retain a.
Licensing assistance b.
Target commercial dates Plant concept, design, construction and operation c.
C.
Technical information prepared by Consumers 5.
Open Items from Previous Meetings A.
Final date B.
Rates for interim steam
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Objective standard for comercial operation-for steam D.
Dow paying demand charges when not being supplied
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process steam.
1 E.
Definition of Dow facility for Steam Contract F..Right of Dow to buy steam above 4 million lb/hr G.
Allocation of stretch steam Shh
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Stephen H. Howell y
Vice President General Offices: 1948 West Parneil190ed, Jackson, Michtgen 49205 ' Area Code 517 788 0453 December 1, 1977 Hove-204-TT U
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69.2.. 4 p,1 Mr D Dick DeLine k
Manufacturing Manager 7-y,f Dow Chemical USA 4
<s Michigan Division A
47 Building Midland, MI As we agreed in our negotiating meeting yesterday, I am setting forth in this letter the open items developed from previous meetings as we listed them.
A.
Open Items on the Steam Contract
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Deferred From Previous Meetings November 10. 1977 Meeting i
1 1.
Final date.
i 2.
Rates for interim steam.
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3 0bjective standard for commercial operation for steam.
- 4..Dow paying electric deman(. charge when not being supplied process steam.
t November 18. 1977 Meeting 1.
Definition of Dov facility for Steam Contract.
2.
Right of Dov to buy steam above h million 1b/hr.
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Allocation of stretch steam.
B.. Outstanding Assignments Drafting 1.
Electric Agreement Consumers - 5(a), 5(e), 5(f) a.
b.
Dow - Remainder of Agreement
m, Mr D Dick DeLine' 2
Dow Chemical-USA
. December 1~, 1977
-2.
General Agreement l:
a.
Repurchase by Dow of land - Dow reviewing Consumers' draft.
i b.
Remaining parts of the General Agreement previously agreed
'to retain.
(1) Licensing assistance.
(2) Target commercial operation dates.
(3) Plant concept, design, construction and operation.
Consumers to prepare drafts and overall framework.
t Technical 4
i 1.
Fuel - Draft proposal'to change fuel cost calculations from levelized basis - Consumers.
.2.
Nav4== operating pressure of-low-pressure and high-pressure tertiary heat exchangers - Consumers.
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3.
Tertiary heat exchange feedwater specifications - Consumers.
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4.
Adequacy of City water line to plant to handle makeup water require-ments - Consumers.-
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. Provide Dow with Consumers' water requirements - Consumers.
6.
Data for unused NSSS capacity study - Consumers.
.i a.
The trade-off economics of unused NSSS capacity versus unused generator capacity.
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- b. -The logic of a credit to Dow when Consumers generates electricity
-l below the Consumers' proposed minimums.
c.
Possible combinations of low-and high-pressure steam which would meet. Consumers' new proposed minimum requirements.
Dow-furnished-Consumers with a draft proposal for defining commercini steam opera-
~ tion ^date at the end.of the November 30,.1977 meeting. Consumers will review it in preparation for discussion at the next meeting..
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NUCLEAR REGULATORY COMMISSION
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~Before the Atomic Safety and Licensing Board
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In the Matter of CONSUMERS POWER COMPANY Docket Nos. 50-329 50-330 (Midland Plant, Units 1 and 2)
CERTIFICATE OF SERVICE a
I hereby certify that copies of the attached " Supplemental Response of Consumers Power Company and The Dow Chemii:a1 Company to.
Interrogatories of Intervenors Other than Dow" dated December 8,1977, were served upon the individuals whose names appear on the attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 9th day of December, 1977.
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CoTnie K. Miller '
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The Dow Chemical Company Legal Department P.O. Box-271 Midland, MI 48640
Attachment:
Service List
. December 9, 1977-
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j SERVICE LIST l
'Frederic' J. Coufal, Esq., Chairman
' Richard K. Hoefling, Esq.
Atomic Safety and Licensing Board Counsel' to NRC St'aff f
U.S. Nuclear Regulatory Commission Nuclear Regulatory Commission l
Washington, D.C.
20555
. ashington, D.C.
20555 W
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. Dr. J. Venn Leeds, Jr..
Cary1' A. Bartelman, Esq.
1 Atomic' Safety and Licensing Board Michael I.~ Miller, Esq..
10807 Atwell Isham, Lincoln & Beale 4
! Houston, Texas 77096-One First National Plaza Dr. Enneth A. Luebke Atomic Safety-and Licensing Board Atanic Safety and Licensing Board
'U.S. Nuclear Regulatory Commission Panel j.
Washington, D.C.
20555 U.S. Nuclear Regulatory Commission -
Washington, D.C.
20555-Myron M. Cherry, Esq. -
One IBM Plaza Atomic Safety and Licensing Appeal-Chicago..IL-60611 Panel U.S. Nuclear Regulatory Commission
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Judd L.1 Bacon.Esq..
Washington, D.C.
20555 Consumers Power. Company T
212 West Michigan' Avenue Docketing and Service Section 4
Jackson, MI":49201.
Office of the Secretary.
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U.S. Nuclear Regulatory. Commission j
Ms. Mary Sinclair Washi.ngton, D.C.
20555 H
i 5711 Summerset Street Midland,-MI 4B640' j
Harold F. Reis, Es
-Robert Lowenstein,q.Esq.-
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'Lowenstein, Newman, Reis &1 Axelrad
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-1025 Connecticut Avenue
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fWashington, D.C.~
20036-Mr. Steve Gadler.
-2120 Carter Avenue
~St.L Paul,,M'nnesota 55108 e
Norton Hatlie,,Esq.
b LAttorney at Law:
P.O. Box:103f
.Navarre,: Minnesota 55392.
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