ML20247F412

Advises That Response to Order Modifying Licenses & Order to Show Cause Why Licenses Should Not Be Revoked Will Be Sent. Responses to NRC Three Basic Questions Re Status of Licensee Finances & Rationale for Having License Provided

ML20247F412
Person / Time
Site:	05000000, 05000603, 05000604
Issue date:	08/31/1989
From:	Irving S ALL CHEMICAL ISOTOPE ENRICHMENT, INC.
To:	Bordenick B, Swift J, Thompson H NRC, NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
25907, NUDOCS 8909180168
Download: ML20247F412 (3)

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'b , , ~ / tom Mr. Hugh L. Thompson, Jr. h.  % ,g Executive Director for Nuclear Materials Safety, Gafeguards, and Support

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Mr. Jerry Swift Mr. Bernard flordenick Nuclear Regulatory Commission Washington, DC 20555 In the matter of:

All Chemical Isotope Enrichment, Inc.

Pine Ridge Office Park 702 S. 3111nois Avenue, Suite 2020 Oak Ridge, Tennessee 37830 Docket No.# 50-603 and 50-604 License No. CPEP-1 and CPEP-2 Gentlemen:

I have received from you a copy of the ORDER MODIFYING LICENSES and the ORDER TO SilOW CAUSE Wily LICENSES SllOULD NOT DE REVOKED.

Since receiving this correspondence and on Tuesday, August 29, 1989, I spoke to Mr. Dordenick and Mr. Swift about this matter.

Please allow me to briefly summarize this conversation.

I advised Mr. Bordenick and Mr. Swift that in my analysis, your action raises three basic questions:

1. Did A1ChemIE deceive the Nuclear Regulatory Commission with regard to information presented on status of our finances, specifically our arrangement with Anderson County Hank?

2. Does A1ChemIE have the present day financial ability to proceed with its project in a fashion wi>ich will provide adequate protection for national defense and security?

3. Is there any purpose for A1ChemIE's having a license if, in fact, the contract with the Department of Energy has been j appropriately terminated?

I advised Mr. Dordenick and Mr. Swift of A1ChemIE's opinion on this matter:

8909180168 890831 PDR ADOCK 05000603 '

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.' Me Ridge Office Park, Suite 202-B 702 lilinois Ave., Ook Ridge, TN

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• Mr. Ilugh Thompeon

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Page 2

1. A1ChemIE has not at any time deceived or intended to deceive the NRC with any information presented with regard to the corporate financial status, particularly the relationship with Anderson County Dank. I will subsequently present documentary information which will prove and attest that the AlChemIE-Anderson County Bank relationship was smooth and in good standing from November 4, 1988 through the Licensing llearings and generally up until the late spring of 1989.

2. The AlChemIE Corporation does have financial capability to proceed with its planned scope of operation in a fashion that offers adequate protection for common defense and security and fully effectuate security plans and arrangements betucen AlChemIE and the NRC.

3 .' It is A1ChemIE's position that the contract with the DOE has been satisfied by the A1ChemIE Corporation. We further feel DOE-ORO has taken actions - beyond our control - which have impeded and intefored with our ability to perform. This matter may require elaborate evidence, which is available to AlChemIE, and which would be best presented in the hearing on this matter.

Centlemen, I will shortly be sending the formal written response to your ORDER MODIFY LIFENSES and your ORDER TO SHOW CAUSE Wily LICENSES SIIOULD NOT BE REVOKED. 1 believe A1ChemIE can show sufficient cause why the Licenses should not be revoked and we are able to continue with our operations as planned. In that formal response, and by this letter, I will be and am requesting a llearing in this matter, where evidence can be presented on issues raised by the Nuclear Regulatory Commission.

Gentlemen, throughout A1ChemIE's Technology Transfer effort the Nuclear Regulatory Commission has been fair and intelligent in protecting its reasonable concerns without undue burden to the business affairs of the A1ChemIE Corporation. AlChemIE has tried at all times and in all regards to be upfront and fully open with the Nuclear Regulatory Commission regarding all portinent information on the issues between the parties. I look forward to resolving these issues with the Nuclear Regulatory Commission and I hope that we will also reach a resolution with the Department of Energy regarding those issues or conflicts which currently impede the success of this important Technology Transfer.

Respectfully submitted,

'l Pf w / D"?/t Stephen A. Irving l Attorney of Record 1

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