ML19347A616

Supplemental Response to Intervenors' Interrogatories.Dow Chemical Co & CPC Reopened Negotiations on 780222 at Midland,Mi Re Nuclear Contracts.Meeting Minutes Encl.Related Correspondence

ML19347A616
Person / Time
Site:	Midland
Issue date:	02/27/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:
References
NUDOCS 8007291160
Download: ML19347A616 (7)

Text

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A UNITED STATES OF-AMERICA f(4 t-"

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Before the Atemic' Safety and Licensing Board UM' W

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In the Matter of )

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CONSUMERS POWER COMPANY )

Docket Nos. N

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50-330

.(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 00W 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. I related to the status of negotiations between Licensee and Dow. Intervenors' 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

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contracts have been identified or_ attached in written testimony of Consumers' witnesses in this proceeding, Messrs. Keeley and Mcwell.

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.With respect lto any' dispute concerning such contracts between Consumers and Dow please state the following:.

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(a) Describe -in detail-the nature of the dispute and the

' status of any negotiations- to. resolve said1 dispute. If it is your position that no' dispute exists, please state the basis therefor in light of the cross-examination testimony of Dow witness Temple, .

including butinotJlimited to the disclosures made by: Mr. Temple of meetings between ' Consumers and Dow and their representatives 'in September,1976 wherein suggestions of lawsuits were made, as well j as : correspondence betweea Youngdahl and Temple during 1975 and 1976 -

which has ;1. eady been produced by ' Consumers.

ANSWER L

In accor'd ance:with the. schedule provided with the earlier Supple .

mental Interrogatory Responseidated February 9,1978,-Licensee and Dow e

r^t at Ocw's: offices'inl Midland, Mich.gan on-February 22, 1978. Attached to this . Supplemental Interrogatory Response as Exhibit "A" is a summary report'ofothat meeting.

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Th L Stephen \H. Howell, Vice President Projects, Engineering and. Construction

!- Consumers Power _ Company

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"Tt Dice'DeLine- -

l Manufacturing Manager

. Michigan Division l Dow Chemical U.S.A.

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

) foregoing . Supplemental Response ~ 'of Consumers Power Ccmpany and The Dow u

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biemicalCompanyto.InterrogatoriesofIntervenorsOtherthanDowis true -to the best of his knowledge and belief.

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G L3D . C Stephe,p H. Howell STATE OF MICHIGAN )-

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-COUNTY OF-MIDLAND')

~ Subscribed and sworn to before me, a Notary Public, this 22nd day

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~o f. February,1978. '.'

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w N i r ! b ' L d t. U Connie K. Miller, Notary / Publi.c  !

Midland County, Michigan i - -

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My Commission Expires: August.16,1981

,c 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 STATE OF MICHIGAN ) r ss.

COUNTY OF MIDLAND )

Subscribed and sworn to before me, a Notary Public, this 22nd day of February, 1978.

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Chie K. Miller, Notary ftblic i.

Midland County, Michigan -

My Commission Expires: Augutt,16, 1981,.

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0 CONSUMERS POWER-DOW REOPENED hDiOTIATIONS Sh : $\)Y b

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Date of Meeting: Februa j 22, 1978 G D

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Subject:

Minutes of Nuclear Contracts Negotiation Meeting at Midland, Michigan'

'Present: The Dow Chemical Company: DDDeLine, LWPribila, JRBurroughs Consumers Power Company: SHHowell, LBlindemer, GSKeeley .

Present as Drafting Committee and for occasional consulta-tion:

The Dow Chemical Company: PDConner Consumers Power Company: JLhacon, WAKirkby

1. The parties . reviewed a draft contract prepared by the Drafting l Committee on-February 21, 1978, and discussed those items on which the Drafting Committee could not agree. Following the discuss 4n, several -l' 4

items. were referred back to the Drafting Committee for rednfting in accordance with the concerns expressed by the parties. The 6emainder

- i of' the icems were either agreed upon or deferred for further considera-tion.

2. The parties discussed the status of Section 4.C. of the proposed Agreertent, which section relates to rates for steam service. Consumers has proposed some contract language to reflect earlier discussions on  !

this matter and will continue to work towards completion of this section. l

.lhe- cost of backup steam from Unit 2 was discussed extensively, particu-larly the basic principles for determining same. The parties also dis-(ussed Consumers' earlier proposal for deferral of the capacity charge t.uring periods when.Dow does not receive process steam.

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3. The parties discussed Consumers' earlier proposal for "Recoverabla l Costs" to Consumers in the event that the proposed Agreement cannot be j fulfilled. Dow expressed.its concerns with. Consumers' proposal. The parties agreed with the concept that every effort should be made to ,

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' mitigate Recoverable Costs and that those Recoverable Costs which are imprudent and unreasonable will not'be recoverable.

4. The parties reviewed Consumers proposal entitled " Water Resources Management" and Dow expressed its concerns and questions relating.

thereto. -Consumers clarified its proposals in response to Dow's

_ questions. Consumers, after a recess, modified its proposal in response to some of Dow's concerns. Consumers will now redraft the

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prooosal.

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5. The parties . reviewed Dow',s proposal' entitied " Term and Termination" ~

iand Consumers expressed ~its ' concerns with respect to this proposal. It was decided to concentrate on ' eaching r agreement on Recoverable ~ Costs before proceeding further.on this proposal.

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- 6. . It was ' agreed -that the: Drafting'Cemmittee, with the ' assistance to

- the extent necessary from the Technical Committees and others, will meet

._ during 'the next week, and the Negotiating Comittees will meet in-Jackson ~ on Tuesday, March 7, and if necessary on 'dednesday, March 8, and

- Thursday, March 9..

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UNITED STATES OF AMERICA ,M p --

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NUCLEAR REGULATORY COMMISSION.

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g Before the Atcmic Safety and Licensino Board

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In the Matter of )

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CONSUMERS POWER COMPANY ) Docket Nos. 50-329

) 50-330 l (Midland Plant, Units 1 and 2) )

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1 CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental i

Response of Consumers Power Company and The Dow Chemical Company to l

Interrogatories of Intervenors Other than Dow" dated February 22, .

1978, were se eed upon the individuals'whose names appear on the 1 I

attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 27th day of February,1978.

_L L n+ o Connie K. Miller W /41&

P.O. Box 271 The Dow Chemical-Company Legal Department Midland, MI 48640 Dated: February 27, 1978 ,

Attachment:

Service List

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_,, p -m SERVICE LIST

( Marshall L E. Miller, Esq. ,- Chairman Atomic Safety and Licensing ~ Board .

Richard K. Hoefling, :Esq.

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p Counsel- to NRC-Staff

' U.S. Nuclear Regulatory ;Ccmmtssion - Nuclear Regulatory Comission

-Washington , 'O. C. 20555 - Washington, D.C. 20555 -j Dr. -J. Venn Leeds, Jr.. Caryl-A. Bartelman, Esq.

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-Atomic Safety and Licensing Board Michael'I. Mille., Esq.-

" 10807 AtwellE .

Ishaa, Lincoln 5 'eale Houston, Texas 77096 One First National- Plaza L Chicago, IL =60603 Or. Emeth A. Luebke

' Atomic Safety.and Licensing B' card Atomic Safety and Licensing Board U.S. Nuclear Regulatory: Commission Panel Washington, D.C. ~20555.

U.S.. Nuclear Regulatory Commission Washington,-D.C. 20555l

-Myron M. Cherry, Esq. -

l One IBM Plaza-Chicago,.IL.-60611 -

Atomic Safety and_ Licensing Appeal.

. Panel U.S. ' Nuclear Regulatory .Cemmission -

' Judd L;l Bacon, Esq.. Washington, D.C. 20555 L

' Consumers. Power Ccmpany 212 West Michigan Avenue Docketing and. Service Section i

Jackson,' MI' 49201 Office of the Secretary

-- Ms. Mary Sinclair U.S. Nuclear Regulatory Comissicn Washington, D.C. 20555 5711 Sumerset' Street.

Midland, MI 48640 Harold ~ F. Reis, Esq.

Robert Lowenstein, Esq.

Lowenstein, Newman, Reis.&

l Axelrad '

'1025 Connecticut' Avenue Washington, D.C. 20036

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Mr. Steve Gadler -

' 2120 Carter Avenue

.Str Paul,~ Minnesota 55108

' Norton: Hatlie, c Esq.

. Attorney ~at Law

. P.O. Box-103 davarre, Minnesota 55392-J y

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