ML20097E583

Forwards Settlement Agreements Re Facility

ML20097E583
Person / Time
Site:	Shoreham File:Long Island Lighting Company icon.png
Issue date:	06/02/1992
From:	Schenker C O'MELVENY & MYERS
To:	Scinto J NRC OFFICE OF THE GENERAL COUNSEL (OGC)
References
CON-#292-12993 DCOM, NUDOCS 9206120244
Download: ML20097E583 (14)

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w e1',1992 17 11 TOCKET NUMBER 1270s414

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(202) 383-5360 516,627-001 VIA FACSIMILE Joseph P.'5cinto, Esq.

Deputy General = Counsel office of_the= General Counsel U.S. Nuc. lear Regulatory commission Washington,~D.C. 20555

Re:

Enclemed Documente

Dear Joe:

For your information, I as transmitting a co"y of the

-settlement agreements related to Shoreham.

I an adviswd that Mr.

McGranery will'be filing motions to dismiss all NRC-resated proceedings in short order.

Please advise if you have any questions or comments.

Sincerely,-

1

/

Schenker[ Jr.

1 R.

of O'MELVENY & MYERS Enclosures Oc:

Stanley B. Klimberg, Esq.

Richard P. Bonnifield, Esq.

Jamae ' P. McGranery, Jr., Esq.

Nicholas'8. Reynolds, Esq.

a 9206120244 920605 PDR ADOCK 05000322 gD.g o

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06 131/1992 17:11

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WHEREAs, LANG ISLAND POWER At?TWORITY ("LIFA*) is the owner ~of the SNOREHAM WUCLEAR POWER STATICN ("SN0kEMAM") Which ia idefttified 48 Distriot 0300, Seatten 0400.00 Sleek 01 00, Let 001.000, and is located withir, the t4 Ming jurisdictions of the courrY or SUFFOLR ("SUFFOLK8), the TONW OF RROORMAM

("SA0000 tam"), and the $NORrHAM-WADING RIM CENTRAL SCMocL DISTRICT-("SWRCSD"),

• M WNEREA8, LIPA is obligated to make paysants in lieu of taxes on said propert.ies to BR00ERAM, SUFFCIJC and StfRCSD pursuant to Public Authosities Law $1020, 31 433. ("the Act"),

and WNERSAS, Section 102 Cay (3) of the Act providae that "the authority shall be required-to pay r.s tattes ner asee' sant upon any af the prrippety acquired er controlled by it...*, tad WRERRAS, LIPA believes that any payment it may owe to the taxing-jurisdictions.in which-suoRERAM is located on any data may only eenetitute a payment in lieu et tasse ("P! tar") pursuant to the Act, an6-WHERang, SUFFOLK, smoJtAm and swacan sentend that on May 31, 1993, real estate taxes totalling $41,022,249.56 are due and owing te'3300ENA M as the sneend half real estate tax payment on the SSORENAM real property for the 1991-92 tax year, and

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'au, WHtRRAS, SUTPCL% in antialN u _of the recolpt et it, porties of the tax proceeds has borrowed in the publio market, and WM13tzes, FUPPoLK is suttaring severe cash shortages in its day-to-day operations and is in dire need of the receipt of anticipated revenues from the SNettMAN facility, and

-WNEREAS, the anocMMAv3N aseelver et Taxes, under the tuttelk county Tax Act is the legally designated recipient of all tax revenues for all taxing jurisdictione entitled to collect revenues et; the 830RENAM property, and wNEREAs, LIPA, 3R00RMAVU, SUFF01Jt and SWRCSD have teen unable te agree as to whether the May 31, 1993 payment vould be a tax payamat as an00EllAVEN, SUFF0tJt and SWRCan sentend or PZIaf as LIFA sentende, and WRERShs, LIPA desires to seeparate with SUFF0!Jt at a time-et diffieult financial aireumstances for SUFFo!Jt, and to avoid any further downgradine of SUFPof.le's bonds and nstes and wuskaas,Lthe parties-te this Agreement will attempt to negotiate a settlement of their legal dittarenose er in the alternative, seek judleial interpretation _et the rights and ebligations of the parties-under the Act, and wasmaAs, to assure that there is ao intarruption of vital serviose to the taxpayere of taa taming jurisdietiene i

wherein anousRAM is leested during the pendency of the nogettatione er any-leget assione, and WNERIAs, the partise to this Agreement have geneurred that a sesend payment wt11 he made by LIPA on er betere Janvery 2-

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10, 1993 in the swa of 840,891,50s.59 and a third payment will be r.ade by LIPA on or before May 31, 1993 in the sum og

$36,803,358 00, with LIPA reserving the right to make said

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payments to the taxing jurisdictions entitled to sailect reven ues on the SMOREMAM property and subject to rosarvatten of rights in i

paragraph "4a below; NOW, TMEREFORE, IN CONSIDERATION OF TMS REPRESENTATIONS AWD MVit)AL AGREEMElf7s HEREIN, LIPA, EUFFOLX, knooKHAVEN an WRC&D AGREE AND STIPULATE As MLLOW84 1.

LIPA will on June 1,1993, issue t check in the sus of $40,891,809.55 made payable to tha "Twwn of Brookhaven*

With the understanding that the LOWO ISLAND LIGNTI25 C08tPAirt

("LILCo") conteeperaneously tender a chest for $141 839 97, which LiLCC believes se be its saw liability for the pertion of IHORENAM that it retained; 2.

5200RNAVEN intands to dativer said checks to the Receiver et Taxes, Town of treekhaven, an independent?/ elented otticial et said town, for the purpose of deposititw saf', a sek E

with a bank or tnet sompany or a designated depeettuy 42 BR00XMAVEN Receiver of Taxes.

3.

33000tNAVEN in resegnition of the oeunty's current caen cr. isis will distribute the proceeds in accordance with the prevh,Lons and requirements of the auffolk county Tax Aet; 4.

The parties acknowledge and understand that they disagree as to the particularities of the payment being made by LIPA to ancoKMAV3M and that nothing contained in this Agreement, particularly LIPA's agreement te oav fundu to Nt00KMAvtw in

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s a sa 1 =8 reon e e suc a a4 to esse aa.

behelt of 8ttyPotJt and naoomsAvtN's neceptance of theon cenetitutes a waiver or or v111 pre $udice any positioa s,

aither party may assert or seek to have adjudicated reord a

parties' rights and obligations uMor the Act, ng the including but not limited tal a.

wheter LIPA's paysants, set farth in paragraph"l*((est n uses a payment of taxes er a FI!At pursuant to the Aest and b. the extent to whiah that LIPA's psymante are attributable to any portion of the property surrounding shera which ocatinued to be owned by LILco after February so , 1993; ans 4. the due date(s), amount (s) and the method et the subject payments and the treatment of the subjoet payments or any Cuture payment (s) made ey LIPA to any taxing jurisdictions pursuant to the Aet; and 4. whether any change, by any means, in the assessed value of all er any portion of Shereham eM/or the property outrounding Shorehas which sentinued to be owned by LILc0 after February 29, 1993, or any tax rate applicable to shoreham and/or the woperty surrounding shareham whiab eentin to be sened by LIZA 0 after February 19, 1993, for any past, presea$ er futura years will result in the change et LIPA's obligatione under the Aot and/or refunde of paysants ande or to be made by L2PA under the Act. That salg tiest payment to taccERAVIN is e. without erajudite to LIPA*a right to make future paymente 4

I ? Jun 1 *33 1 47 FROM 4 4 Q4D 4 84 90 ~ ct.it 286 directly to any of the tawing jurisdictions in which the suong g property is leoeted. 8. That simultaneously with the awacution of this agreement, SifRCSD and Lapa, along with actsNT!sta AJt0 ENGINEERS 70R SECWS ENE34Y, INC. ( a st,* ) will sator into en agreement, in which all of the parties agree to promptly dismise all judicial and adminiettative action and waive any future actions which seax to or will have the effect of preventing or delayir4 LIPA's decommissioning of SMcRR.%N, including but not limited te 1,1 pas e dispeettien of low level radioactive vaste and spent aucitar tual. The instant agressent shall not beseos effective, despite the signature of the parties, unless and until the referenced agree:nent between LIPA, SWRcs0 and sa, is esecuted by all the pe,rties therste. 6.. subject ta 1. IPA's rseervation of rights in paragraph '4" shove. LIPA will on or hetare January 10,1*et issue checks totalling $40,891,50s.89 nade payable to the taxing

il.. lut.1vn= whnteln the eHCAa,.m property ta accates ane I. rA will on er before May 31,19931seus ehersks totalling 836,848,354.00 ande payable to the taxing jurisdietions wherein the asematnN property is 1eented.

7. The parties agree and understand that the making i of these payments, the aesaptance and treatment of 'sene, shall i not be used by say party in any future action er preseeding as przs=ptiva, sirs = tar.ti:1 ; prchativa avia&r...: p u.. a.. payments sonstitute a PILOT payment or tax payment er \\ l i

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• t ies dentitled in paragraph.e4n, I,ows 33&AND h wam Av.nonITY -

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• COWTY OF SUFFW

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m -. _ ta6 m g.g;4.,q.h % v i i-m 1 "ta = anfetmatkov kaatsunse WNEREAs, SNCARNAM= WADING RZYER CSNTRAL SCMML DISTR!CT tassaceu=;, wwur4WTs au amwanas run swvas mamur (ammas ane Titt L0014 !$1AND DOWER Att!woRI2i ("LIPA"), INeing the " parties," aenutewledge that under the Long Island Power Authority Aet, Puh11c Authorities Law $ 1030 at agg. (the "Ast"), 'LIPA as owner of the shorehan Nuelear Power SR tien ("Sherehana) is et11 gated to make eartain payments in 11eu et tause ("PZLOf*) with respeet to sharehaa to angelpalities and seheen distriese, inetuding swaces, in which shoreban le leested; and , up, is i.,0. e..ien., a ta.,m in...tu, the amounts which would have been received by the taming jurisdictions free the Long Island Lighting company (oggsco.) for shoreham (and. eartein property surcounding shorehan walen LILeo seatinues to son) it shoreben had not been seguired by L*pA, and LIpA intends te utillae the emeente and the May 31, 1993' payment date ladiented la that bill as the beste ter payment, without projesias-to attame pany and suh$ast to the senditions and reaeevetten of ripto stated An paragraphs "3" and e4" below; and

WitERS48, LIPA had been eensidering and' had under advisement whether to withheid the May 31, 1998 payment to swmean in response to earta&n eencuet et swasso including the litigation retopensed in paragraph "1" below; and

~~ " I- -*.*c 'G7J4am, all rarttee sonetter it in the best interest er the people of Lang taland ei4 eswh Party se sere &nate att litivation between and among sne partlee both in *.aw et the outrterdinary small likeliheed that, Shorehta can ever opnate as a welser power PAant again without formidatie further investaant and in view of the fast that each of the Parties should be a11 owe 8 t pursue its respoetive responsibilittee en the beels of mutual from the other Parties and without interference free the respeet other parties; WOW, THEREFORE, IN CONSIDERATION eF THE RSPRS89tTATICMs AND NUTUAL AGREstbef8 MER31W, SWRCSD, Sta AND LIPA ltERESV AeREE AN ifiP'.' LATE At FCLLOWSt 1. eWRCSD and 582 agree, ne seen to posolbie but in no event later than five (5) days af ter the essaution of this Ap oement, se tiie aAA neeeeeery papero to seek disaise41 with praiudiae in att t.ha wee au w a* 6,getic t;*.ite.: tr. t.1-J. :,11 Partise are engaged, and with steh Party agreeing to hear its own oeste and attorney fees. LIPA represente and warrante that it will, se eten as peseitas but in no event 1Ator than five (8) days after the #ffective Date of thle Agreement, SDtain the seneent et } all defendaea and file the stipulation Slesentinuing ution witti i Prejudies previately assented my plaintiff's attorney in Egika canatruanian h = ~ 46 caen.. ae M - v. u=a em v * *-a a. ea. ai., IndeM No. 9191/1998, pending in New York tuptsee Cecrt, County of Massau, and that each party agrees to tear its own oeste and attermey fees. Ne party admita er seneedes any fasta er legal 3 ~.

I 4- ..c. .. v, g, ,e poetiene at issue in the actions to be discontinued and/or Heelseed. counsel tot

• all parties shall use their test efterte to ensure that these satsars are missieses expeditiously.

2. $WResD and su agree to waive any right they or any affiliated entity or entittee have had, presently have, or say have in the future, to bring any $udicial er administrative action which eseks to er witi have tne offset of preventing er delaying LIPA's decoussiestenlag of sherahas including out not 11eited to L!PA's disposition of law level radioastive weste and spent nuolaar tuoit provided that no action by SWResp or any taxing jurisdiction with respect 1:e tauee or PILOT related to shorehas shall be eeneidered to have the effect of preventing er delaying LIPa's docessissioning of sharehee. 3. LIPA

agrees, subject to the senditions and reservation of rights set Jerth in this paragraph and in paragraph "4" below, and subject to the terme of the Agreesent between LIPA.

secsc, the Town et trestaven (atreaWverad) and the county of suffolk, dated Jane 1,190s ("efreement to pay"), that it will pay the emeente indiented in that Agreement under protest and subject to the provietene of the agreesent to pay. The tendering, sesophones and treatment of these payeents shall not sonstitute a wa&ver af er pre $edies any parties' peettien er right to seek court in p tion to resolve any issue related to that payeent or any future paymente te be cada by LIPA. Some of the o~pcifie leeues whiah are reserved for future resolutten are listed below in paragraph 84a. 3

_. _.._. _._. _ _.. _._._.,_.__ _ _ _. _ _ _ _ _ m _ _ _ - Oti/01/1i!G a73if 127C6414 P.12 - TA 0I-12 83:a6 ;1. ; rMo w;. 8-C t 18 6.54.> The parties acknowledge and understand that they say 4. disagree as to the particularities of any payments LIPA makes to municipeitties and school distrists in which sharehas is located and tatt nothing contained in this Agreement, particularly 1. IPA's agreement to pay eroekhaven, and Brookhaven's acceptance and treatment of that paywent, constitutes a waiver of or will prejudios any position or claim any party (or any taxing $urisdiction representing a party) eay assert er seek to have sejudicated regarding the parties' rights and obligations under the Ast, including but not limited tot whether L17A's payment, referenced in paragraph a. "3,8 constitutes a paysant of taxes or a PIT.ef pursuant to tne Act; and b. the extent to which that payment is 3 attributable to any portion et the property eurrounding shersham whtah continued to be owned by LILCO after February 29. 1993; and s. the sua date(s), asevnt(s) and eethod of payment of the subject payseat or any future payment (s) sada by LIPA to 8WR080 pursuant to the Act; and d. Whether any change, by any meane, in the assessed ve&ue et a11 er any portion of Shershes and/or the property surroeJeding shoreham which seatinued to be raned by L1Lco after Februe*,y 29, 1992, er any tax rate applicable to snoraham and/or the property surrounding Shoreham which continued t o be wned by LI140 after Foeruary 29, 1998, for any past, present or future years will result in the change et LIpA's obligations under -4= - - -.i.,,, .-,...._,.,.,,,m#--,, c., ,%_.,...--t-,. ,..,r. ...,..ye ,.._,c, ....m. ..,..,..,w -,w.,.,'

"' Adi u e n.;.. I so a ge m.. .g,[,f" ~ ~ l the Act tnd/or refunds of payments made or to be made by LIPA und the Act. 5. LPA egrees that it will not int 6ttste with the cor. duct of SWP. cad's activities, ineluding any oisis to finanotal entitiement er other benefit, or initiate e put)io campaign which criticises the conduct of $WResp's er 88/e activities incluainq their conduct of the various legal proceedings subject to tnis

4reement, g6 that LtPA shall not be precluded trea responding to press er media inquiries which relate to swmess's or 88 's hetirities in relation to shareham, and that it is owpressly undstateM that any claim or defense by L!PA er LILco in any legal estion(s) rainted to any enange(s) in the aneunt(s), date(s),

method and/or characterisation of payments to the muntelpalities i and Sync 40 or in the underlying asseessant pursuant to paragraph

• Aa et this Agreasent and/or other payments of tamos or PILCT shall not be deemed to be ainterference a nor De considsped to ainitiataa as these terms are used herein.

6. Baek Party roleeses and discharges jointly and severally all other Partise end thire party beneficiaries (such third-party benefisiaries datined as all parties in the case et w ho e - a = t i a m tra n a a m a n e e a -. at al. v. irm ra v. maman. at ab, Indem No. 9191/ u es), as releasse(s), the releasse(sC releasee's and/or releasses' directors, ottleers, heirs, easeuters, agente, amployees, suocessors, attorneys, and assigns from all actione, oasses er-actions, suits, debts, dues, suas of money,

assents, recording,

bends, bills, spesialties, covenants, 4

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G A *t h,in U~.v. i g.st U W 'r % @ t-916. 4-206d M 8% M.'92 33:47 1D:6 i POLSR e4R!W

• tL tc 1-916-M
• k' ue! e oontrasta, sentrovarsies, agrannents,

presises, varianese, 1

trespassee, damages, judgunts, extents, erneutions, clains, and demands whatsoever in law, adstralty er oguity which against the relonese Party and/or Favtles the releaser Party and/or Parties, the releasser(s), releaser's and/or releaser's direeters, officers,

heirs, sueeusers,

agente, employees, sussessere, atterneys, sentraeters and assigns over nad, new h6s, or hereaf ter een, shall et may, have for, upon, reJatir.g to, arising free er ty reasen et any matter, etusa er things whatsoever from the beginning of the world to the trocution Date of this Agreement relating i.e er arising free any or all of the legal actlpas before the NRC, the court of Appeais, or state suprams court identified in this Agreementr provided that, nothing herein eenetitutee waivar(s) er prejudies to any Party's right to assart a etais or defense or eeuntereinta relating to er arising free alleged tax es11eations of LIL40 ans/er alleget paysant in lieu of tamos chligations of L3pA; and provided further that, tais raisese does not s '. low any relerserie) te name any slain (e), saaert any sountereleine(s), er bring any other action (s) trising free er relating to the inetttutten et any tot 194 Defore the NRC, the court of Appeais, or stata eg eese eeurt against any releasse(s) who are not named plaintiff (s) ent/or petittenere or otherwise voluntarily.. involved in kny institution of such setten eeneerning the decemalestening et shoreham.

7. LTPa, SwRces and 88, separately verrant and repusent that the daalgnated signatory to this Agresesnt on its behalf is 6-

6 01/1955 lia l t 12706414 t.lo e '. * !. t * *.4 -iL3 i. 1 duty authertsed by the relevant Party to ameoute this Agressent and bind that Party to this Agressant. I i $'f ) I fin %t3 6lolg v v gy, , ~, SHORtKAM-WAD 1Mo nivan crWtAAL scMoct 21stAzc7 L.7 2 h [d J,/,x 2 7 y, q a RNTIST8% DEN NERS FOR 5EcVRE EWracy %\\% J L-Ak = vp TMS 1AWO ISLAND POWit AUTNGR2iY 7 n = p-TOTP. P.15 ~}}