ML20207H447

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Provides Results of Ofc of Congressional Affairs Inquiry on Knowledge of Official of Commission Level Ofc Re Activities by Us Citizens in South Africa That Might Be Subj to Section 57(b) of Atomic Energy Act of 1954,as Amended
ML20207H447
Person / Time
Issue date: 03/27/1985
From: Kammerer C
NRC OFFICE OF GOVERNMENTAL & PUBLIC AFFAIRS (GPA)
To: Palladino
NRC COMMISSION (OCM)
Shared Package
ML20207H410 List:
References
FOIA-87-3 NUDOCS 8808260516
Download: ML20207H447 (9)


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REVISED c

UNITED STATES March 29, 19~;5

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g NUCLEAR REGULATORY COMMISSION

-l WASHINGTON, D. C. 20555

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March 27, 1985 MEMORANDUM FOR:

Chairman Palladino FROM:

Carlton Kamerer, Di ector Office of Congressi nal Affa' e

SUBJECT:

KNOWLEDGE OF COMMISSION LEVEL OFFICES CONCERNING VIOLATIONS OF SECTION 57(b)

In accordance with your request, the Office of Congressional Affairs contacted all Comission Level Offices to determine whether any official had any knowledge, prior co press accounts, relating to activities by U.S.

citizens in South Africa that might be subject to Section 57(b) of the Atomic Energy Act of 1954, as amended.

The Office of Policy Evaluation reports that individuals there first became aware of these activities in mid-November 1984.

Individuals in all other offices reporting directly to the Comission had no knowledge of these CHANA*i-RE.c> activities prior to the press accounts.

In this^ regard, the Advisory Comittee on Reactor Safeguards polled all of its employees but would require additional time to reach all of its consultant members. The 29 U,R 65 il 15 responses of the individual Comission offices are set forth below:

Chairman Palladino:

I recall tnat, dering a visit to the Catawba Nucler Power Plant ca October 26, 1984, I W.s told by a utility repectentatiso that Duke Power Company was losing ceacto" operatr,rs te r, asser of places, including, South Africa.

I recall not being told that this activity was illegal. The possible legal ramifications of this inforrestitn did not occur to me until I saw press accounts of the employment of U.S. citizens in South Africa.

l Upon seeing those press Eccunts, I askec my office to check with other NRC perscnnel who acacmpanied me during the Catawba site visit. My office contacted the inoividuals anc' was told, in each case, that the NRC individual did not recall discussing /c.#r, African recruitment in any context. Hence, I conclude that the in/tr~r+ ion must have been mentioned to me individually rather than as part of the pre-tour meeting.

Chaiman Palladino's staff:

The Chairman's office received a copy of a classified cable on November 30, i

1984 as part of Telegram Highlights, November 26-28, 1984 (84-65).

The l

Highlights package was reviewed by members of the Chaiman's staff but was l

not reviewed by the Chaiman, l

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L In addition, a member of the Chairman's staff provided the following information:

To the best of my recollection, in early 1984, I was approached by ESCOM regarding employment in South Africa. At that time, I was acting in the capacity of Senior Project Manager for the Indian Point Nuclear Power plants.

There were several telephone calls and a luncheon with*a reprc5entative of ESCOM.

I informed ESCOM soon after the luncheon that I was uninterested. At that time, I had no knowledge of any legal concerns.

However, I was aware that ESCOM had approached several plant operators at Indian Point Unit 3, one of the plants for which I was responsible.

My first awareness of legal concerns associated with South African employment occurred in January 1985 while in the pcsition of Technical Assistant to the Chairman.

Commissioner Roberts:

My Special Assistant, Maria Lopez-Otin, and I first had knowledge of these activities on reading Cable Pretoria 14176 included in the Telegram Highlights'(84-65) of November 26-28, 1984.

Commissioner Asselstine:

Commissioner Asselstine recalls that he was told of the loss by Carolina Power and Light Co. of a small number of plant operating personnel to the South African nuclear power program during his October 15, 1984 visit to the Brunswick nuclear plant in North Carolina.

During this visit, only a brief passing reference was made to U.S. personnel ir. South Africa.

Commissioner Asselstine also notes that a classified document received by the Commissinners on November 29, 1984 ep:, cars to be th? first notification to the Commission which makes centien of the legal questions regarding 'he employment of U.S. personnel in South Africa.

o Commissioner Bernthal:

My staff first recalls becoming aware o' L'.S. citizen employment at South Africa's Koeberg nuclear power plant in late November of last year from information which was provided by the S:ste Department.

I may have been informed at that time, and may have read newspaper accounts later on, but I do not recall the matter receiving significant attention until a February 1, 1985 Commission meeting, involving international issues, where the Commission directed the staff to ' prepare a paper describing for the Commission what the NRC staff knew about the South African matter.

O

3-Commissioner Zech:

To the best of my recollection, the first that I was aware of this matter was either through reading press accounts or through reading classified reports presented to me in the course of business. Two of my staff members have informed me that they were aware earlier of South African attempts to recruit operators during their previous private employment.

I have polled the rest of my staff and, to the best of their recollection, they first became aware of this matter either through classified correspondence or through press reports, cc:

Commissioner Roberts Commissioner Asselstine Commissioner Bernthal Commissioner Zech OPE OGC OPA 01 OIA SECY ACRS ASLBP' ASLAS s

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b. (A Bruce A. Wilson, Chief Operator 1.icensing Section A

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SOUTH AFRICA PROBABLY WOULD NOT BUY ITS NEXT NUCLEAR REACTOR FROM FRAMATOME, supplier of the two-unit Koeberg station, an official with South Africa's Atomic Energy Corp. tells Nucleonics Week.

He readily acknowledges, however, that there are no present plans for a next reactor, and thus no need for a choice.

None-theless, he says, "niggling little quality control problems" at Koeberg have eroded. South Africa's confidence in the French nuclear vendor.

The problems have been small and generally have not been found in the two units' safety systems, the official says.

However, Framatome has been slow to alert the government to the various situations.

For instance, he notes, Framatome waited a year to alert the South African government to an underclad cracking problem it had discovered in all of its reactors.

"If EDF (Electricite de France) hadn't raised the issue in France, we would never have known about the cracking,"

the official points out.

Koeberg has undergone extensive rewelding of the under-cladding and is being monitored for leaks as a result, he says.

Tense political relations between South Africa and the Mitterrand government in France over South Africa's segregationist policies have added to the strain on the country's relationship with Framatome, the official adds.

He says there are only "rumblings" of expanding South Africa's nuclear power program beyond the Koeberg station.

As a consequence, he says, hundreds of government and industry officials are wondering if they'll have jobs after Koe-berg-1 starts up later this year and Koeberg-2 begins operating in 1986.

"It is a problem witt all developing countries in nuclear power.

What do the industry and licensing people do once the plant goes critical? Maintenance is not enough to keep everyone busy." But he is confident tha,t the nuclear estab-lishment will find a way to perpetuate itself.

In the meantime, the official says, South Africa's Electricity Supply Comission is having difficulty training a corps of reactor operators.

"Although Framatome has agreed to train reactor operators and to' leave its operators on site for the first year of operation, we're worried that we won't have enough experienced people af ter that," he says.

All the operators must be brought to South Africa from other countries and then licensed by the South African government.

To be licensed, these operaters must qualify technically and psychologically, he says.

"We're having to turn away operctors with 15 years of experience because they can't pass the psychological tests," the official says.

Regardless of the difficulty this psychological testing presents, the South African government has no intention of dropping it from the prerequisites for an operator license, he says.

Despite the sabotage ac the Koeberg station late last year (tN, 6 Jan.,1),

which set completion back at least six months, operator training is the last major concern to address before startup of Koeberg-1, th9 official notes.

l.

NUCLEONICS WEEK - September l', 1983 l

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s

~N

,e Reactor ( prators Suspeeleo ( (Eh&E T:;.

Tce.

P pe O: Working for South Africa 4

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T rm JU 20 m5 law rwes aubmahon by Rd AtLmson from the secretary of energy before

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ww-r-P= sw *,w, any U.S. citizen '6tectly or m6-

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South Africa's state-owned pow-rectly" helps certain nations. includ.

1 er compar:y is suspected of having ing South Afnca, produce plutonr recrui:ed a> man:, as 40 suted um. a reacter byproduct that can be Amencan atomic reactor operaton, used to fashion nuclear weapons.

who may be work 2ng in South Afnca Nuclear reactor operators do not in violation of U.S. nuclear nonpro-produce nuclear weapons, but con-hieratsoo laws, accordmg to.U.S.

trol various plant systems. Pluto-officiais and congressonal sources.

nium, which can be used to make The operators, some,of whom nuclear weapons, is a byproduct of are thought to have worked for the the plant's nuclear reaction. -

Termessee Vaney Authonty (TVA)

South Afnca has refused to sign and for prnrate U.S. utihties', appar-.the Nuclear Nonptohferation Trea-ently were hired by South' Afnca's4 ty. Tkre is widespread suspoon Electncity Supply - ch ~ within the' U.S. mm,T.mt and elsewhere that South Afncs is de-(ESC 0hD with petummes of taa tree salanes as high as $100,000 m. year, ' velopmg or has built' nuclear bombs. * '

free housmg, free transpoetationio --Energy.and State Departmect South Ainca and guarassees of of6cials confirmed that they are Monday through-Friday day shifts mvestigating whether the U.S. cit, at a new nuclear plant near Cape-iaens in South Africa broke the law, town, a congressaonal source said.

SeeNUCLEAR, A28, Col 1

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In addition to identifying the Amencans NUCLgAR,hos Al and their duties, U.S. aHimh are trying to v.t.ich carries a mazamum penalty of 10 determme when the operators began work-years in prison and a $10,000 fme. Officials ing in South Afnea. The law reganns of-6 cal authonzation was enacted in Februan said they are not certam wFe'htr the Amer-1933. and anyene wont.ng there earber icans were recruited crecJy by ESCOM. or isy be eacluded. However, orie c"ngres-whether the Secth Afrierts violated laws by sional aource said at least 11 of the oper-henng then ators are thought to have gom to South.

A spokestr.rm fer the South Africa Em.

Afnca within the last year.

bassy here said Ambassador Bernardus G.

One official said the issue surfaced in Nr.r Foune was out of town and that the emba,.

vember, apparently when ofscials at the sy wonM have no comment.

U.S. Embassy m South Afnca hee-f that Meanwhile. a State Department ofAcal Amenens were won.ng br unaude%r ew I rench-built Koeberg rea:-

said. "We don't k:cw enctly what all of the ESCOM Amencans are di.,ine.We don.t have a ftx on tor, whkh opesed in 1984. A second reac-the numben. bet we are in touch with the ter is schemed to begin operabo:rs this South Afm.n government. We don t have

ny evidence of a vtllful m!aoon of iaw. We

'fn[rgy Departinent o8cas then heard i

haven't made that detenr nacon yet, rumors that reactor opentors for the Car-U.S. authentses said tney hope the op-olma Power & l.ight Co. and Southern Ca;-

erators will identdy themselves voluntanly.

fonua E& son's San Onc{re nudear plants if they don't. *the eatraition agreement nonh of San Diego were contemp!a:mg job betweco us and South Africa would cover offers in South Afnea. Investigators corr this. an Energy Department of6cial sad.

firmed those rdmors in recent weeks and l

  • We obdously can't go into their pi:nts warned the operators that they would need and point out the Americans.* another State govera. ment permesion before a:ee;ttng ofncta) added. "The word has gone out the jobs, an Energy Departmer.: ef0cta!

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through ESCOM. and some (operators}

said.

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1:n Mel. cod a spokesman for the feder-j have come forward.... If they are outside aDy owned TVA, saad, *1 understar.d that 4

the law, then they must stop work imine-some [7VA operators) have left for South diately. But it's not a question, as far as we AAca, but I have no idea how many or how their being in sensi-know at this point, of'ouclear weapons."

many followed,through...,,It*s a go tal l

tsve nuclear areas hke iI l

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cor.sensus that our operators are pret:y they f:rs: beame aware cd tne tr.atter late

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weP trrmed and are generally sought after

!sst yea'.

.; m. ::..' !...c.

- > ; 4 1P 1' D a N ='r r-5.uth Ainca.'

were trar. ec to U.b. ca.;a:m sece :4

-"-tm E U.sorx. t.unacer.ua. Enerr,'bekn-

... s, :a:.:, :..t :..:..

TVAi reactors smcc 1973, 56 nave qwt, sa:et) although it is not clear how many are recent ment documents show that 10 other re-d.partures to South Africa. McLeod said.

cuests are "pendmg'-some have been it, He noted that starting pay for bceased up.

Embv f:r a y ear-while rnen.ber> d Cern erstors at TVA is $31,000 a year, au pay gress watch to see what the adanstrataan for the most serdor operators is capped at deodes.

Under a 50 year agreernent signed in

$52,000.

Energy Department officials, led by Carl-1957 as part of the "Atoms for Peace" pro-tan E. Thorne, director of the Energy De-grain. the Uruted States helped build South

~.-.ent's pobtico mibtary secunty aHatts Afnra's Safan I research ieactor in the ear-dmsion, are planrung to bnel some mem-ly 1960s.

bers of Congress this week.

However, further assistance, includmg On Friday, Rep. Edward J. Markey (D.

suppbes of ennched urardum needed for Mass.) sent a letter to Energy Secretary reactor fuel, was suspended in 1975 be--

Donald P. Hodel requesting "complete in cause of South Afnca's refusal te sign the format;oo," adwhns claana5ed cables, Nuclear Nooprohferation Treaty. 'the gov-. *

  • about your knowledge or that of any other ernment has built a pUot entiduneet plant.

, Department of Energy officials' on the sub ; and is cmstructag a larger one.

. I

.v.+

....A ESCOM's new Koeberg reactor, built to Ject.

"It is av understandmg,' Martey' wrote,Tsenerste 4.4W for metropo6 tan Cape-

"that afrxmals at the Department of Energy... town, has been open to W by inter.

and possibly the State Department, may - antional sudest watchdogs. But some U.S.

have known of the actmties of U.S. citise.ns. public astere.st groups any the e soue

. na c id cretly

.r, in Soue ec. Io, as i

. a,e.,

ui plutonmro from the plant into a bom%uild-l failed to take actaan to correct this sitna.

tion."

ing program. The Nuclear Contro!laststute '

That allegation "is absolutely not true,* a estimates that the two Koeberg reactors serdor Energy Department official said.

will produce more than 600 pounds of plu-Thrce State Department officals also said tordum a year, enough for 43 atomic hampi "I think the really signideant thmg is the administration obviously has been sitting on this ior some time now,* said Paul L Leven-thal, pr=wtaat cf the instreute. "It is yet, " '

.nother example of the admirdstratice ft-cibining the South Atrican pre;: nun....

. Everythms tw [W South Atncars] do tvattsmes to their apabi'.i? to produce sudear weapons."

Bet Warren F..Witzig, a axlear n.6-

?

r neering profssor at Pemsytrar.ia Stite Uriversity, said "Nucleu gwu for t'ae

  • )

producuen of electnoty and nudeu weap-ons have about a:. rauch a co=:no u de Max brothers witt, Karl Mars. They sh re a

the arte nor,e but beytad W. 2: pets a'

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.c littk thh.*

Despite the widespread permgirn tbt the nudear edu.stry n mori'A.r4 ha %e r,

wake of the Three Mue Island a:odent and plumtretmg ou pnces, there is 'a lot of body snatdung" between nuclear utihues i loobng for exprienced technicans and en-gineers, according to Doo Wmston of the )

Atornic Industral Forum.

Nmety one nuclear plants now operate in the Uruted States, and about three times that number operate in other countnes. f Another 36 plants are under construction in the Uruted States, although 100 U.S. ptsats have been canceled ance the early 1970s.

"That puts on a demand for eng:neers and.'

Ior help,". Win. st.o,n added.

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WG. 370:1, p,c,

" JAN 2 9 1985 l' - 7IT, C ' C S - (

  • 5, l'. L Pretoria: Americans at A-Plant carnes a numum penalty of 10

[rIU3rdd$ssca,,'y,G s,

=n.er Sparka -

years in pnson and a $10,000 fine.

mrmerow. n.c. soooo ' d By A!!ast n.

Last Wednesday. Energy and Frm:

A..

one P88*O useMJ P

P CAPE TOWN, South Afm.a. Jan.

State department of6esals told sev-28-South Aincan authorities con

  • 1 mbe 4 firmed today that about 65 U.S.--

on,g h. Con 8 13 b -

.- WALL STREET JoUnNAI, that u

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citizens are wortung as nh p rized American workers had be'en M 2 I[ $

ciahsts at the Koeberg ateenic pow-con 6fmed M Wg for Esm t aa according to a source who attended M

=? % g g he cleared g

the briefmg. U.S. officials say they g

Embassy here that they were not e

are attempting to identify the violating U.S. law, Americans and their duties before However, an ernbassy spokesman decidmg what action, ti any, should Benedact Los Alamos Pact 4

indicated later that the contact had be taken against them.

stopped short of giving legal clear.

Andre van Heerden regionalin-Pharmaceut2eals in:. said the lis Alamos ;

COLDEN, Colo. - Benedict Nuclear anee, saying the embassy was fonnation officer for Escom, skh Nxuona! laboratory. Los Alamos. N.M.. j merely info:Tning the Americans of operates the Westinghouse.

i att-ed, te help Benecict desirn amd bu11d the laws affettmg their employment designed. French bin plant on the a P. Mowed !mear m! ear m.de a:

m South Afn:a' Atlantic Coast about 20 mdes r.u.r.

CU'". ra#' imdm commmia%ala I

U.S. law requires authori!ation of Cape Tow % 40ld ioreign corn-ned::a diotuto;es.

from the see etary of energy before spor, der.ts today that atw 20 g,,g.,,.chich nh Wh*ma-

' any U.S. tiuaen *directly or indi.

Americans were directly emp'reved cewns for nuclear med; cme. sa:J n rectly" helps eertain nauens. inclad-by the commis,ian as health phys-p:2.s t: bui:d the accelera:or.ar. ce Den.

ing South Afnca, prcduce plutoni-scists. emergency planners and re-ser a t: tr the aext three to foc years for um which can be used to make nu.

am.! C5 m!!! ion. The compaay deci;ned to a: tor opert. tors.

6: L "5 != ring p!ars clear wcapons.

About 40 to 45 c:hers were em-Platoruum is a byprodu-t of the Koetntg plant's reactor, which be.

ployed at the plant by U.S. co..;.a-rues cantracted by we South Ain-gan operstmg last year and is now can comtrission to do mamterance generateg between 4 and 5 per.

cent of Soutn Afnca's tatti eixtne-and s4fety work a: the power 5:.a.

tion, van Heerden said, sty needs. A se<ond reactor, which Van Heerden said Americans had will double the output, goes into service later this year.

been workmg at Koeberg s;..:e The Washmgton Post reported 1976, mostly on three year con-Jan. 20 that South Africa's state.

tracts. They had helped tram Scath run Electricity Supply Commission African staff and had been used par.

(Escom) was suspected of offering ticularly on quality control high salaries arid other benefits to Van Heerden derned a report recruit as many at 40 skiliec Amer-that the American, had beer i. rec ican atomic reactor operators, who to work in South Africa W.

may be working at the Koeberg

$100.000 a year, tax. free sahnes '

plant is violataon of a 1983 law that plus free houses and cars.

South Mrica, DenyingRiegality, Says Americans ifelp Run Reactor By AIAN COWEl.L

, vesingatiosiordered >y the Reagan Ad. South Africa's only nuclear power who helped us with emergency I *m.

icus a rn. n,- v s w a

plant.

ning " Mr. van liccrden said fee 'en-CAPE TOWN. Jan. 28 - Sect, 4;. l! minhtritto.

'Ibe offict-t s seld the Electricity Sup.

Mr. van Heealeen sold Ame 1 cans et ers were expected to help train N ith rica's stateowned rower comp sy ply Commtwlors had met with its Koeberg fell into two categories,-

Africans to nas the reactor.

said today that it had atcruitad UrJted Amer;cen e:nployers recently and had those wortting directly for the Elec.

He said estimates that Amest* ms sisecs personnel. Inctisoing etomie e tidcSJaleri o Uttated Seeles requent that ancity Supply Cosnetsslaus and those were teing peld $100.0n0 a year in ark reactoroperators,tohelp run a serie9r I M*e7 set 4:n touch w!*h the Department working for American contractors et Ko-tierg were "a little bit e 3

gwswer stanfori near here.

( of r,nergy in Westdngines se that their hired by itte conseafssion. He estinnated sive."

Dut at a news crmference, a synkcS.

legal status could be anosrtained, that 29 were esuployed directi tputsted South Africa - suspected by sv soy.

snan for South Africa's Electricity 5"P-not any W were M by on Ws conHnent of e@eMinst er sh ply Commission denind puh!hhed sug.

U.S. Knew About Seese of Theam.

centract.-

ready suissessing ens @nr weep.w. - -

gesthms that Amestran personnel were UD0ff Arnerican residetioses pub.

Officists sold the United States eu. has refiacd to sign the treaty na enst woshing in timeraventtem of Use*,cd g llahed la February 1983. United States thortales had tssowst about the author. the spread of sauclear weapons b o. Sc.

States laws.

t chltens rwed offiraal authertratinus be.

Ired Amerscess contractors fcr some cording to Mr. van Iteerden, s.a s "1 hey are not doing anythfag (Po.

fore Imrviding some coimaries, includ.

time but did usot learn of thedirectly rw agtrecil to inspection nf ihe Kort ra gal." the spokesman Acdre van sixr.

le %sth Africa, ampertise that could cruited Intdividisals testil Nevernber.

Plant t y offectets frum f rance an.1 *he den, said.

L ahem pr.ducs plutonium. Pt a-

"The mejority of ' Americans are Internadonal Alomic l'ncrry ARe~y Other cificials saki the fun rutens 1

sm een 'De uv d to build nucIcar I. re as consultants." Mr. van Heerden "They 8 ave free arress to all p:ers. of and legality of private Americari tr>

weapons and is one of th. by. products ewl, but others beclude operesoen in it." he said.

volvement at the French supptig cf reacters suct.es the tuo at Koeberg.

charge of sVactor systems and "people Other nuclear Installations in S ith reactor at Kocherg. 20 miles north e

[.egif Jrrfclhastets 7sse, scrutiny. he said, berause South Ateira here. had yet to be estabihhed by an in o Africa. however, are not apen to wh l

TT AStuNr"YOff. O.C. eoOOS ----

has devrtoped en advance-l wey e..,en.

rich uranlurn and d.w s not wane to

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share Ilie technology.

HEW YOIIK. N.Ya TIMCO 2 pepartesiceita In=c stret.

s -4.s=r w v~. %

e WAStilNGTON, Jan 29 - The tw N - W.67.;

partment of Energy and the State tw p g, gIIcs GE for I!rcacli of Contract 0 - 1 K 3. 0 7'5

.E partment areinvesiegating requcer by several at the Amervan worker ta cr Ciene al Electric Co. was charged with breach of contrxt, herach nding ni, th ieg.in, nt,1.

,.o,,. t of warranty and urgligence in a federal event suit ided ci Sgmkarie.

,,,',' ',N e,',.

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  • * *3 Esh.. by the Washnigton Public Powcr Svit>ly Sy* tens today.

The suit seeks enovery of costs the supply sysicm im urred in 11c *I= kesmen. Philip ). Kelf.. id replacing. repairing and correcting tmth the compmwnts led the "It cout i go either way" but he n ti.

cated u wa= likely H.u !! win win s rig containment straxture for the nuticar steurs supply system of its No. 2 plant at the llanford nucicar reservatbn. The secam si.pply '/g gg...

,,. f.8{ -

,', ba "b "

system, includmg the reactor and a recirculation system that cre-r

. o,,,,,c;..

not violaung the new. even if the o.mi.

ates steam, was supphed by General Electric.

chief legal coumet said the total could be vi euress af $100 md. '[$

j.yn jGi nel ps rsonncI lieve Iw'en replace I Whde the suit does not specify dann:.ges. Craig Doupe. WPPSS-lie also =ald that there wai rm t n.

literauon umcern" hei ause the -.

lion." Doupe said the suit potentially couhl be the largest ever filed h,',

,[ * $-

by WPPSS agaimt contractors and soppliers.

T;A0ilIi"GTON, D.C.

  • We gir.t heard of this ourselves," said D.ivid Crow!cy, a spokcs.

.pogy south Aristan wonk had tw n appen st for ab..et a year.

man at CE's nucicar energy division ist Sanlose. Cald. "'It's our po-2h g sit ~ n that we have fulblicd all of our contractual <J; ligations witti 1II ~ 710 SON.

a respect to that pl.mt, and we don't believe thea as a sound basis for 3 - 996.621 the suit.' he said.

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