ML20010B955
| ML20010B955 | |
| Person / Time | |
|---|---|
| Issue date: | 07/01/1981 |
| From: | Bickwit L NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| To: | Palladino N NRC COMMISSION (OCM) |
| Shared Package | |
| ML20010B956 | List: |
| References | |
| NUDOCS 8108180531 | |
| Download: ML20010B955 (6) | |
Text
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k'g UNITED STATES h
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[,f NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 July 1, 1981 MEMORANDUM FOR:
01 airman Palladinc
/hfhhLeonardBickwit, Jr.
FROM:
General Counsel
SUBJECT:
TO SECURE APPROVAL OF CONFLICT OF INTEREST EXEMPTION FOR THOMAS M.
ROBERTS The President has indicated hic intention to nominate Thomas M.
Roberts to be a member of the Commission.
Section 208(a) of Title 18 of U.S.C. prohibits a Government officer or employee from participating " personally and substantially" by the rendering of advice or otherwise in any matter in which he or an organization for which he is employed has a financial interest.
Section 208(b) provides that this' prohibition need not apply -- and daus an exemption may be granted -- where a determination is made daat the financial interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer or employee.
Mr. Roberts has continuing financial interests in Southern Boiler and Tank Works, Inc. (Southern ), a company which has had substantial involvement in the commercial nuclear field.
Because of these interests, Mr. Roberts wo'uld be precluded by the restrictions of 18 U.S.C.
208(a) from participation in a wide spectrum of issues relnting to containments and certain other matters related to Southern's nuclear contracts onless an exemption were granted.
This restriction would clearly diminish his ability to function as a member of the Commission.
Southern Boiler and Tank Works, Inc., a custom steel plate fabricator serving the nuclear. petrochemical and food processing industries, was acquired by Chicago Milwaukee Corporation on October 3, 1978.
In August 1978, work in connection with the construction of nuclear power plents, mostly involving the manufacture of containment liners, constituted approximately 80% of the company's business.
However, since that time the amount of the company's nuclear work has declined sharply, and at the present there are only a few outstanding nuclear-related contracts.
Southern is currently finishing up a contract for TVA on shield wall material (which should be completed by the end of July), and has some small ongoing contracts to assemble and test strainers used in nuclear giant containments.
CONTACT:
Marian E. Moe, OGC x43214 8102180531 810701 LIMITED DISTRIBUTION PDR MISC PDR
Chcirman Palladino 2
July 1, 1981 As reflected in his Financial Disclosure Report, Mr. Roberts has two types of continuing financial interests in Southern:
he has a vested pension as part of Southern's employee retirement plan, and he holds a note from Southern issued in connection with his sale of the company.
Based upon information provided to my office about South ern 's pension plan, I have determined dhat Mr. Roberts' participation in Commission decisions related to Southern or containment design and performance matters cannot affect the amount of his pension.
Although his share in the pension plan was related to the company 's profits during the time dhat Mr. Roberts was employed at Southern, his pension is not related to the company 's present or future profits, and his role on the Commission cannot affect the amount of his benefits.
With regard to the note from Southern, Mr. Roberts has assured me that the amount and certainty of benefits due to him are not subject to Southern's future financial condition.
Under the terms of the note, his remaining interest in Southern is for a fixed sum, to be reduced by a fixed amount on an annual basis, and is secured by assets substantially in excess of the amount due to him.
No conditions of the sale were tied to the company's future financial health, and in the event of Southern's dissolution, he is a priority secured creditor.
Based on the representations in the attached certification, I have concluded that his participation in Commission matters cannot affect the amounts he receives pursuant to the note.
Thus, I believe Mr. Roberts meets the requirements for an exemption under 18 U.S.C. 208(b) because his financial interests in connection with the pension plan and the note f rom Southern are not so substantial as to be likely to affect the integrity nf his services to the Government.
18 U.S.C.
208(b) provides that the government official responsible for an individual's appointment has the authority to grant the exemption.
The audnority of the President, the appointing of ficial in this case, is delegated to the Chairman of the Commission by E.O. 11222 (See 5 CFR 735.101. ) */
- /
While the language of Section 503 of E.O.
11222 is not entirely clear on this point, the legal opinion in the attached memorandum from the Office of Government E th ics is a reasonable reading of the Executive Order and should be accorded substantial weight since OGE is the agency charged by statute with interpreting regulations pertaining to ethics problems issued by One President.
.Chditman Palladino 3
July 1, 1981 It should be noted that even if the Section 208(b) waiver is granted, and Mr. Roberts is thereby exempted from the restrictions of Section 208(a), he will still be obligated to recuse himself on matters where his participation would create an appearance of impropriety under E.O. 11222 and 10 CFR Part O.
It is my view that where a particular matter before the Commission affects a plant for which Southern has performed work, he should not participate in the matter to the extent that work performed or contracted for while he was at Southern is at issue.
Our office will advise him on a case-by-case basis as to whether his participation is permissible.
I recommend that Mr. Roberts be granted the attached exemption under 18 U.S.C. 208(b).
Pursuant to Commission policy, the exemption, if gr' anted, will be placed in the Public Document Room.
Attachments :
Certification of Thomas M. Roberts Draf t Certification Pursuant to 18 U.S.C. 208(b)
Letter from Office of Government Ethics cc:
(Limited Distribution)
Commissioner Gilinsky Commissioner Bradford Commissioner Ahearne OCA
,ERTIFICATION C
i I hereby certify that the amount and certainty of the interests due to me from the cale of Southern Boiler and Tank Works, Inc. (Southern) under the terns of the note -
from Southern and the installment sale of Southern referenced in my Financial Disclosure Report (Form 278) are not subject to the future financial condition of Southern.
My remaining interest fro'm the sale of Southern is a fixed sum, to bo reduced by a fixed amount on an annual basis, and is secured by assets substantially in excess of the amount due to me.
No conditions of the sale were tied to the company's future financial health', and in the event of the company's dissolu-tion I am a priority secured creditor.
r o
THOMAS M.
ROBERTS Dated this
?
day of June, 1981.
- ,--n
1 1
THOMAS M. ROBERTS CERTIFICATION PURSUANT TO 18 U.S.C. S 208(b)
Q b
2 Pursuant to Section 208(b), Title 18 U.S.C. (Pub.
L.
87-
]
849, 76 Stat. 1124), the Ghairman of the Nuclear Regulatory 1
Commission hereby determines, for the reasons set forth below, that an exemption from Section 208(a) be granted to Thomas M.
Roberts, a nominee to the Nuclear Regulatory Commission, so that he may be permitted to review, without regard to the restrictions of Section 208(a), matters relating to Southern Boiler & Tank Works, Inc.
Southern Boiler & Tank Works, Inc., is a custom steel plate fabricator serving the nuclear, petrochemical an? food processing industries.
In the past, Southern Boiler has manufactured steel containment liners for a number of nuclear power plants and currently has some small outstanding contracts with companies involved in the nuclear industry.
Mr. Roberts' participation in Commission business would be substantially diminished if he could not review matters related to Southern Boiler & Tank Works, Inc.
Mr. Roberts has a vested pension from Southern Boiler, and holds a note from Southern issued in connection with his sale of 'he company.
However, Mr. Roberts' participation in Commission matters cannot affect the amounts he is entitled to receive from these financial interests because they are unrelated to the future financial condition of Southern.
Th us, I have determined that these interests
2 are not so substantial as to be likely to affect the integrity
' of Mr. Roberts' services to the Government.
NUNZIO J.
PALLADINO Chairman of the Commission Dated at Washington, D.C.
i this
- day.of July, 1981.
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