ML19344A211
| ML19344A211 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 02/02/1978 |
| From: | Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO. |
| To: | |
| References | |
| NUDOCS 8008060559 | |
| Download: ML19344A211 (9) | |
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UNITED STATES OF AMERICA C
NUCLEAR REGULATORY COMMISSION Y
4 Before the Atomic Safety and Licensino Board
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In the Matter of
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CONSUMERS POWER COMPANY
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Docket Nos5%Jf}
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50-330 (Midland Plant, Units 1 and 2)
)
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SUPPLEMENTAL riESPONSE OF CONSUMERS POWER COMPANY AND THE DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVEN0RS OTHER THAN DOW Consumers Power Company (" Licensee") and The Dow Chemical Company
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("Dow") submit the following supplemental answer to that portion of Intervenors' Other than Dow ("Intervenors") Interrogatory No. I related to the status of negotiations between Licensee and Dow.
Intervenors' Interrogatory was directed to both Licensee and Dow.
1 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 identi_fied or attached in written testimony of Consumers' witnesses in this proceeding, Messrs. Keeley and Howell.
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. ith respect to. any. dispute.concerning such contracts between Consumers W
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 position that no dispute exists, please state the basis therefor in-light of the cross-examination testimony of Dow witress Temple,
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including but not limited to the-disclosures made by Mr. Temple of meetings between Consumers and Dow and their rei.resentatives in September,1976 wherein suggestions of lawsuits were made, as well as correspondence between Youngdahl and Temple during 1975 and 1976 t
which has already been produced by Consumers.
ANSWER In accordance with the schedule provided with the earlier Supple-4 i
mental Interrogatory Response dated January 20, 1978, the meeting scheduled j
l for January 26,-1978 was postponed due to the weather.
Licensee and Dow met at Dow's offices in Midland, Michigan on February 2,1978. Attached to this Response as Exhibit "A" is a summary report of that meeting.
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l Stephen H. Howell, Vice President Projects, Engineering and Construction
. Consumers Power Company i
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~D. Dick DeLine 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 Comnanv and Tha
- s. Dow Chemical Company to Interrogatories of Intervenors Other than Dow
. is true to the best of his knowledge and belief.
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Stephen'H. Howell STATE OF MICHIGAN )
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COUNTY OF MIDLAND )
Subscribed and sworn to. before me, a Notary Public, this '2nd day of February,1978.
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nw C'onnie K. Miller Midland County, Michigan My Commission Expires: August-16, 1981
' D. Dick DeLine, being duly sworn,. deposes and says that 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.
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D. Dick DeLine STATEOFMICHIGAN)
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-COUNTY OF MIDLAND )-
. Subscribed and sworn to before me, a Notary Public, this 2nd
' day of February, 1978.
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-Cbnnie K. Miller-
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i Midland County, Michigan My Commission Expires:
August-16, 1981
-CONSUMERS POWER-DOW REOPENED NEGOTIATIONS Date of Meeting:
February 2, 1978
Subject:
Minutes of Nuclear Contracts Negotiation Meeting at Midland, Michigan
-Present:
The Dow Chemical-Company: DDDeLine,- LWPribila, JRBurroughs Consumers Power Company: SHHowell, LBLindemer, GSKeeley In addition, a drafting committee of PDConner for Dow and WAKirkby for Consumers attended various portions of the meeting.
Dow proposed the attached Agenda which was agreed upon.
Agenda Items 1.:
Housekeeping Items The meeting scheduled for January 26, 1978 in Midland was postponed due to the weather.
It was decided to hold the February 2,1978, meeting'in Midland.. Further meetings will be held in Jackson on
, ednesday and' Thursday, February 8 and 9.
W Consumers Power presented Dow with an updated draft of the contract section on the method of calculating steam rates. -The drafting committees will review the language of this draft and make appro-
- l priate modifications.
2.
Review of' Dow/CP Technical Meeting of 1/25/78
. The' parties reviewed the results of the Dow/ Consumers Power technical meeting held on January-25,1978, and specifically discussed the -
items shown on the attached outline. The parties reviewed their positions ~ on these items and identified those areas where there was agreement and ~those areas where disagreement remain.
3.
Process ' Steam from ~#2 Unit-Prior to Commercial Operation of #1 Dow indicated an interest in having an option to receive steam L
.from Unit 2' prior to coqmercial operation of Unit 1 and the parties agreed on this concept.. Dow will prepare a ; draft proposal for the. contract in this regard.
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..4.
. Consumers Power Response to " Radioactivity" Section Consumers provided Dow with a proposal for the standards to demon-strate absence of radioactivity.
The. parties discussed the proposal and reached agreement in principle ~and Dow will prepare the next draft.
5.
Dow Proposal for First Right of Steam from Unit #2 if #1 Unit is Down Dow presented Consumers with a' proposal for receiving its reserved capacity of steam on a first-call basis from the output of the Midland Plant. :The parties agreed to refer it to the drafting
- committee.
6.
Dow's Responses to CP 1/19/78' Draft of General Agreement a)
Reorganization of the Agreement Dow responded to Consumers' draft dated January 19, 1978 and suggested a reorganization which will be incorporated'in the next Dow draft, b)
- Delivery Points and Measurements s
Consumers responded to questions raised by Dow, and Dow has.
agreed to review the matter further.
1 c)
Insurance and Liability Dow presented Consumers with a proposal on this subject and the matter was referred to the legal subcommittee for.further discussion and resolution.
6 7.
Recoverable Costs-Consumers explained in detail their earlier proposal to Dow in this regard.
.This will'be discussed in further detail by-the technical committee, and Consumers will furnish an approximaticn of these costs.
- 8.
Unused NSSS - Combinations of Low and High Pressure Steam Discussion on this item was referred to the technical committee.
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.P PROPOSED AGENDA l
I LDOW/CP MEETING'
- February - 2,.1978 -
L 1.
Housekeeping Items =
2.~ > Review of Dow/CPLTechnical-Meeting of 1/25/78 3.
Process Steam from #2 Unit prior to Commerical Operation ;of #1 4.
Consumers-Power-response-to " Radioactivity" Section l
l S. :Dow proposal for first right of steam from Unit #2 if #1 Unit is down 6.
Dow': rasponses to CP'l/19/78 draft of General Agreement a)-Reorganization of the agreement I
b) Delivery. points ~and measurements c)-Insurance'andliability lI 7.~ Non-recoverables' 8.
Unused NSS - Combinations.f low and high pressure-steam l '.
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DDD
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DOW/CP TECHNICAL MEETING-l-25-78
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Start-up; systems'(138) -- need breakdown into P, M,
'S'and C components.
12.- Mythical plant.-- need site and timing' l
3.1 Nuclear fuel cost -- need to levelize first 3-4 years.
4.
Licensed.or actual demonstrated'-- change to warranted or, actual- (whichever is greater).
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1 5.
Contract flexibility -- both C?/Dow:
a) Operate.at high levels to prove warranties I
b)' Avoid 2 MM pound / hour pinch point c) Incentive to decrease steam usage during turnarounds 6.
Working capitali a):Why. Plateau" Resources?
b)LWhy Dow'~.7 days; other customers 45 days ?
7.
Decommissioning costa -- need-scope'and mechanism.
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DDD fl/27/78
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NUCLEAR REGULATORY COMMISSION "o
g Before the Atomic Safety and Licensing Board
)
In the Matter of
)
)
CONSUMERS POWER COMPANY
)
Docket Nos. 50-329
)
50-330 (Midland Plant, Units 1 and 2)
)
)
CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental Response of Consumers Power Company and The Dow Chemical Company to
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Interrogatories of Intervenors Other than Dow" dated February 2, 1978, 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, or, the 3rd day of February,1978.
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. WS C5mtre K. Mi11er The Dow Chemical Company Legal Department P.O. Box 271 Midland, MI 48640 February 3,1978
Attachment:
Service List i
5 SERVICE LIST Marshall E. Miller, Esq., Chairman Richard K. Hoefling, Esq.
Atomic Safety and Licensing Board i.'insel to HRC Staff U.S. Nuclear Regulatory Com.nission Nuclear Regulatory e. mission-Washington, D.C. '20555 Washington, D.C.
9555 Dr. J. Venn Leeds, Jr.
Caryl A. Bartelman, Esq.
Atomic Safety and Licensing Board Michael I. Miller, Esq.
10807 Atwell Isham, Lincoln & Beale Houston, Texas 77096 One First National Plaza Chicago, IL 60603 Dr. Emmeth A. Luebke Atomic Safety and Licensing Board Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Panel Washington, D.C.
20555 U.S. Nuclear Regulatory Commission Washington, D.C.
20555 Myron M. Cherry, Esq.
One IBM Plaza Chicago, IL 60611 Atomic Safety and 8.icensing Appeal Panel Judd L. Bacon, Esq.
U.S. Nuclear Reguletory Commission Washington, D.C.
20555 Consumers. Power Company l
212 West Michigan Avenue Docketing and Service Section Jackson, MI 49201 Office of the Secretary 4
Ms. Mary Sinclair U.S. Nuclear Regulatory Commission 5711 Summerset Street Washington, D.C.
20555 Midland, MI 48640 i
Harold F. Reis, Esq.
Robert Lowenstein, Esq.
Lowenstein, Newman, Reis &
Axelrad j
1025 Connecticut Avenue Washington, D.C.
20036~
Mr. Steve Gadler 2120 Carter Avenue St. Paul, Minnesota 55108 Norton Hatlie, Esq.
Attorney at Law P.O. Box 103 Navarre, Minnesota 55392