ML20054F545

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Request to Permit Citizens for Equitable Utils to Withdraw from Proceeding W/O Prejudice to Citizens Ability to Renew Participation as Party If Util & Citizens Arrangements Terminated.Ltrs & Certificate of Svc Encl
ML20054F545
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 06/14/1982
From: Jordan W, Newman J
CITIZENS FOR EQUITABLE UTILITIES, JOINT APPLICANTS - SOUTH TEXAS PROJECT, LOWENSTEIN, NEWMAN, REIS, AXELRAD & TOLL
To: Bechhoefer C, Eva Hill, John Lamb
Atomic Safety and Licensing Board Panel
References
NUDOCS 8206170089
Download: ML20054F545 (9)


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Junc 14, 1982' Charles Bechhoefer, Esquire Chairman, Administrative Judge Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, D.C.

20555 Dr. James C. Lamb III Administrative Judge 313 Woodhaven Road Chapel Hill, North Carolina 27514 Ernest E.

Hill Administrative Judge Lawrence Livermore Laboratory Post Office Bcx E08, L-46 Livermore, California 94550 Re:

Houston Lighting & Power Co., et al.

South Texas Project, Units 1 & 2, Docket Nos. STN 50-498, STN 50-499 Gentlemen:

Enclosed are copies of a letter dated June 10, 1982, from Mrs. Buchorn of Citizens for Equitable Utilitiec (CEU) to Mr. Don Jordan of Houston Lighting & Power Company (HL&P) and of Mr. Jordan's reply of June 11, 1982, describing cooperative arrangements that have been developed between CEU and HL&P.

In reliance upon such arrangements, CEU has decided to withdraw from the proceeding with the Board's approval.

CEU and HL&P respectfully request that the Board permit CEU to withdraw from the proceeding without prejudice to CEU's ability to renew its participation as a party if the cooperative arrangements between CEU and HL&P are terminated, provided, however, that at any time CEU seeks to renew its participation as a party (a) it shall be bound by any actions taken during its absence, (b) it shall take the gd 8206170089 820614 PDR ADOCK 05000490 0

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A Charles Bechhoefer, Esquire Dr. James C. Lamb III Ernest E.

Hill June 14, 1982 Page Two proceeding as it finds it, and (c) it shall not ask for any extensions or delays to prepare for its renewed participation.

CEU respectfully requests that it remain on the distri-bution list for documents in the subject proceding.

Respectfully submitted, Respectfully submitted, f

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William,8.' Jordan, III ack R. Newmpn Counsel for Citizens Attorneys for HOUSTON LIGHTING for Equitable Utilities

& POWER COMPANY, Project Manager of the South Texas Project, Harmon & Weiss acting herein on behalf of itself 1725 I Street, N.W.

and the other Applicants, CITY OF Suite 506 SAN ANTONIO, TEXAS, acting by and Wachington, D.C.

20006 through the City Public Service Board of the City of San Antonio, CENTRAL POWER AND LIGHT COMPANY and CITY OF AUSTIN, TEXAS.

Of Counsel:

Lowenstein, Newman, Reis

& Axelrad 1025 Connecticut Avenue, N.W.

Washington, D.C.

20036 Baker & Botts 3000 One Shell Plaza Houston, Texas 77002 Enclosures (2) l cc:

Certificate of Service l

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June 10,1982 i

Mr. Don D. Jordan Chairman and Chief Executive Officer Houston Lighting & Power Company i

Post OfHce Box 1700 Houston, Texas 77001

Dear Mr. Jordan:

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This is to inform you that Citizens for Equitable Utilities (CEU) is seriously considering withdrawing its intervention in the South Texas Project (STP) licensing proceeding, if we can be given adequate assurances, in addition to changes HLSP has made to date, that the plant will be safe and reliable, and that CEU's concerns will be addressed during the course of the Project's development.

As you know, CEU has not. opposed the Project in principle but, rather, has been concerned that the STP be built in a manner which provides reasonable assurance to the public that the plant will operate efficiently and safely. CEU entered the case because of severe reservations that these objectives would be attained with the Project as then organized.

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Since then, we have noted a number of changes in the Project organiza-tion as well as other constructive steps taken by HLEP affecting the safety and efficiency of the Project.

CEU considers the decision by HLSP to obtain an independent review of the design of the STP to be such an important and constructive action.

Additionally, some two years after initially becoming involved in the intervention and after viewing and evaluating numerous construction docu-ments and reports, CEU expressed the most serious reservations about HLSP's architect-engineer and constructor; urged Brown S Root's replacement; and sought a division of responsibility for the Project which would help to assure the independence of the QA and QC functions. We are encouraged by the steps HLSP has taken in this direction.

In engaging Bechtel as architect-engineer and construction manager, and Ebasco as constructor, you have brought to the Project a level of experience which we were convinced was entirely lacking heretofore.

By splitting the functions, as we and our consultants have suggested, the independence and authority of the QA/QC function can be strengthened and enhanced.

But the efficacy of the steps you have taken remains to be seen in the actual performance of the new contractors, as well as the controls which are exercised by HLSP management.

The latter is particularly impor-tant if public confidence in HLSP is to be restored.

I raise two concerns in this connection.

First it is extremely important that HLSP continue to recruit experienced and qualified personnel, and that HLSP support these i

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Mr. D. D. Jordan Page Two June 10,1982 personnel in their efforts to assure safe construction and operation.

Second, I hope that you will make use of periodic audits by organizations with absolutely no stake, financial or otherwise, in the STP.

Finally, I hope that you have sensed the value of constructive citizen participation in activities of this type which are of overriding concern to the public welfare and safety.

This is the reason -- and the sole reason --

for CEU's participation in the STP proceeding.

We believe that it is in the best interests of HLSP and its ratepayers to encourage public participation through more frequent and meaningful communication and by direct citizen involvement in Project activities such as review of QA/QC functions.

We stand ready to assist in any useful way, in this regard, I understand and appreciate concerns you may have about possible grandstanding or use of the media by CEU. Should we become aware of information concerning safety problems or other difficulties that may arise at STP, I assure you that we have no intention of taking any such action.

To do so would be counterproductive.

Rather, we would work with HLSP to assure that the problems were resolved in a timely manner.

I would appreciate an expression of your views.

Sincerely, Peggy Buchorn Executive Director Citizens for Equitable Utilities

The Light

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June 11,1982 Mrs. Peggy Buchorn Citizens for Equitable Utilities Route 1, Box 1684 Brazoria, Texas 77422

Dear Mrs. Buchorn:

I would like to thank you for your thoughtful letter of June 10, 1982.

There is no question that the ultimate responsibility for the safety and efficiency of the STP rests squarely on Houston Lighting & Power Company and that this Project requires public support and confidence if it is to succeed.

I hope that your decision to consider withdrawing your intervention in the STP proceeding is a reflection of that support and con-

fidence, in any event, we are confident that our program will justify it.

The record of the STP proceeding reflects problems which we believe have been, or will be, remedied by the changes we have made over the past two years.

In-house, we are staffing up in a way which will assure reliance upon qualified, experienced personnel and greater visibility and more detailed involvement of HLSP management in QA/QC activities, as well as effective programmatic direction which will continue to be applied to our new, more experienced contractors, Bechtel and Ebasco.

Construction deficiencies (e.g., welding and voids in concrete), some of which were the subject of CEU's contentions, have been or will be corrected.

As you know, Project engineering is undergoing a thorc sgh review by Bechtel.

These actions represent a positive resonse to many of the problems identified by CEU, HLEP and the NRC.

We have an opportunity for a new beginning at STP and I share your view that greater public participation can help us realize the benefits which that opportunity presents.

I think immediately about such a role in the QA/QC area.

As you know, one of many new steps we are taking to assure the quality of the STP is our commitment to an annual independent audit of the STP QA/QC program during construction.

This year the STP program will be thoroughly audited by a group of individuals drawn from other utilities with experience in the QA field.

They would have a very broad charter to assess our quality activities.

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Mrs. Peggy Buchorn Page 2 June 11,1982 I would be delighted to have a representative of CEU (Mr. Kenneth Buchorn or another representative mutually acceptable to CEU and HLSP) participate fully in this effort in the following fashion: We would provide to you a copy of all of the materials and information that are transmitted to this audit team (which you would use exclusively for purposes of your parti-cipation in the work of the audit team); you would attend the meeting of the audit team at which the scope of the audit is discussed, and have the oppor-tunity, at a meeting immediately thereafter with HLSP management, to comment on such scope; you would attend the exit interview between the audit team and HL&P, and have the opportunity to meet with HLSP management immediately thereafter to state your views on the matters presented and to obtain answers to any questions you might have on the audit report; you would receive the audit report prepared by the audit team, contemporaneously with its trans-mittal to us; and if you had any remaining questions after the audit was completed, we would meet separately with you, and, if necessary, respond to them in writing.

In other words, by the foregoing means the CEU repre-sentative would be kept fully informed as to the planning and conduct of the audit and would have an opportunity to provide his comments, suggestions and views concerning matters being addressed.

As we discussed, CEU's representative may, from time to time, wish to be accompanied by a knowledge-able friend or associate for particular purposes. We would not object to periodic participation by such an additional individual provided that he/she is acceptable to HL6P.

As you may be aware, HLSP from time to time engages the services of consultants who serve as third party experts on a variety of subjects.

If CEU identifies any concerns which they believe merit an outside review, subject to HLSP concurrence, such review will be undertaken.

We view this first attempt as a trial program and will maintain flexibility in its implementation to achieve our mutual goals.

We would also encourage open communication between CEU and HL&P management should you have concerns outside the audit process.

I believe that our meetings on June 4, 1982, opened a dialogue which I hope will continue; you may be assured of continued access to our management for this purpose.

Although HLSP has not decided how the annual audit of QA/QC will be performed each year until completion of construction, a similar role for a CEU representative will be provided throughout that period.

For example, if, as we presently anticipate, a similar u*ility audit team will return for another audit of the STP QA/QC program in early 1983, the CEU representative would be able to participate in similar fashion. This year's audit will be conducted over a relatively brief period. The 1983 audit will be conducted over a longer period of time and, consequently, the audit team may meet with HLLP management from time to time to review with HL&P the progress of the audit and the preliminary results thereof.

Accordingly, in addition to the participation we have described above,you would attend such meetings and have the opportunity to meet separately with HLEP management immediately thereafter to identify questions that you believe require further review.

Hou /an irfung & (%u Cominny Mrs. Peggy Buchorn Page 3 June 11,1982 I understand that the arrangements I have described are acceptable to CEU and that your counsel and HL&P's counsel will jointly inform the Atomic Safety and Licensing Board thereof and of CEU's withdrawal from the proceeding in reliance thereon.

Again, I deeply appreciate your letter and the opportunity to meet with you and look forward to constructive cooperation with you and CEU.

Sincerely,

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Don D. Jordan Chairman and Chief Executive Officer

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENFING BOARD In the Matter of

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HOUSTON LIGHTING AND POWER

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Docket Nos. 50-498 OL COMPANY, ET AL.

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50-499 OL

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(South Texas Project,

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Units 1 and 2)

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CERTIFICATE OF SERVICE I hereby certify that copies of a letter from William B.

Jordan, III, Counsel for Citizens for Equitable Utilities, and Jack R. Newman, Counsel for Houston Lighting & Power Co., dated June 14, 1982, have been served on the following individuals and entities by deposit in the United States mail, first class, postage prepaid, or by arranging for hand delivery as indicated by asterisk, on this 14th day of June, 1982.

Charles Bechhoefer, Esq.*

Brian Berwick, Esq.

Chairman, Administrative Judge Assistant Attorney General Atomic Safety and Licensing for the State of Texas Board Panel Environnental Protection U.S. Nuclear Regulatory Commission Division Washington, D.C.

20555 P.O. Box 12548, Capitol Station Austin, Texas 78711 Dr. James C. Lamb, III Administrative Judge William S. Jordan, III, Esq.

313 Woodhaven Road Harmon & Weiss Chapel Hill, North Carolina 27514 1725 I Street, N.W.

Washington, D.C.

20006 Ernest E. Hill Administrative Judge Kim Eastman, Co-coordinator Lawrence Livermore Laboratory Barbara A. Miller University of California Pat Coy P.O. Box 808, L-46 Citizens Concerned About Livermore, California 94550 Nuclear Power 5106 Casa Oro Mrs. Peggy Buchorn San Antonio, Texas 78233 Executive Director Citizens for Equitable Lanny Sinkin Utilities, Inc.

2207-D Nueces Route 1, Box 1684 Austin, Texas 78705 Brazoria, Texas 77422

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. Jay M. Gutierre'z', Esq.*

Office of the Executive Legal Director U.S. Nuclear Regulatory Commission Washington, D. C.

20555 Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Commission Washington, D.

C.

20555 Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.

C.

20555 Docketing and Service Section Office of the Secretary U.S. Nuclear Regulatory Commission Washington, D.C.

20555

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