ML20141M539

Notifies of New Evidence of Illegal Settlements at Plant. Requests Immediate Issuance of Order Requiring That No Settlements Preclude Employees/Attorneys/Agents/Consultants of Minority Owners from Providing Info

ML20141M539
Person / Time
Site:	Comanche Peak
Issue date:	06/11/1992
From:	Kohn M, Kohn S NATIONAL WHISTLEBLOWER CENTER
To:	Selin I, The Chairman NRC COMMISSION (OCM)
Shared Package
ML20141M533	List: ML20141M531 ML20141M537 ML20141M539
References
2.206, NUDOCS 9209010096
Download: ML20141M539 (4)

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NxiiosA1. WiiisTEElitowEn CFxn:n 517 Florida Avenue, NW Washington, DC 20001 1850 (202,667-7515 Fn (202)462-4145 June 11, 1992 UP. GENT MATTER Hon. Ivan Selin Chairman U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Ret New Evidence of Illegal settlements at Comanche Peak

Dear Chairman Selin:

The National Whistleblower Center, and its clients, Mr. Joseph J. Macktal and S.M.A. tiasan (hereinafter " petitioners"), wish to bring to the attention of the Nuclear Regulatory Commission ("NRC")

newly discovered evidence of a continuing practice of Texas Utilities Electric Company ("TU") to pay " hush mo:.ey" to keep significant information from the hands of petitioners and to otherwise keep information from the NRC. Specifically, petitioners wish to bring to your attention the apparent existence of a January 30, 1990 " hush money" settlement agreet - executed after the NRC staff issued directives to nuclear L oensees requiring a halt to this practice -- which specifically prohibits all Tex-La _

employees, attorneys and consultants from " assisting or cooperating" with any third party in all " proceedings" related to "the licensing of Comanche Peak." Eg_q May 20, 1992 letter from Tex-La's counsel to Mr. R. Micky Dow, a copy of which is attached hereto.1 1

The settlement agreement referenced in the attached May 20, 1992 letter restricts the rights of all Tex-La employees, agents, attorneys, consultants, etc. from assisting intervenors in licensing or 2.206 proceedings at Comanche Peak. This form or restrictive agreement is far worse then any previous restrictive settlement at Comanche Peak because rather than restricting one employee, the agreement apparently restricts all employees. This violation of NRC regulations must be severely sanctioned.

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Page 2 Hon. Ivan Selin June 11, 1992 On the basis of the contents of the May 20, 1992 letter from Tox-La's counsel, it appears that TU continues to routinely pay

" hush money" which violates the statutory rights of employees to assist and/or participate in NRC proceedings. Sfa 42 U.S.C. 5 5851(a) and 10 C.F.R. 550.7.2 TU's obvious continuation of its illegal practice to pay hush money to keep information gleaned by Tex-La out of the hands of petitioners, other parties to the CPSES licensing proccodings and the .NRC, indicates that TU probably placed similar restrictive language in secret agreements reached with the other former co-owners of-CPSES.3 The record already establishes that TUEC's counsel did pay

" hush money" to_ Mr. Macktal's former counsel in January of 1987, to Mr. Polizzi in June of 1988 and further offered to pay Mr. S.M.A.

Hasan $200,000 in hush money in June-July of 1988. The revelation that TU has since paid hundreds of millions of dollars in hush money after the U.S. Senate $ubcommittee on Nuclear Regulation held hearing on the impropriety of such a practice and after the NRC Staff issued notice to TU forbidding the payment of money to potential witnesses on condition that they agree not to participate or assist in proceedings related to the licensing of a nuclear pcwer plant, is shocking. On the basis of this new information, the NRC-must take immediate action to sanction TU.

2 Section 210 of the Energy Reorganization Act, 42 U.S.C.

55851, statutorily protects petitioner's rights to unbridled access to witnesses as well as the right to gain assistance from employees of the CPSES minority owners to prepare petitions and to initiate proceedings under the Atomic Energy Act. Restrictive settlements not only infringe upon the right of employees to freely testify, but also infringe upon the right of petitioners and other potential intervenors (such as the Disposable Workers'of Comanche Peak Steam Electric Station) to fully participate in licensing proceedings.

3 l It is our understanding that the three former co-owners l of-the CPSES conducted extensive and widespread investigations of TU management's integrity and competence to operate the CPSES.

TU's continued attempt to keep this information from the NRC demonstrates the need to conduct hearings on integrity and competence, particularly in light of the fact that there is little else more disconcerting to these issues that the continued practice of-paying hush money to potential witnesses.

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l Page 3 Hon. Ivan Selin J'ine 11, 1992 WHEREFORE, petii.ioners ' hereby request an order suspending TU's license to operate Unit 1 of CPSES and to suspend TU's permit to construct Unit not Petitioners also request that TU's permit to

2. be construct Unit , extended past its current expiration date, and that the NRC immediate establish of a licensing board tc allow pubic scrutiny into TU's practice of paying " hush money" to secure the licensing of the CPSES. f ADDITIONALLY, petitioners request that the Commission immediately issue an order requiring:

1) NRC staff to take immediate steps to notify TU and the former minority owners that no settlement can preclude of the employees / attorneys / agents / consultants, etc.,

minority owners from providing information to persons who either intend to be or presently are participants in NRC safety related proceedings from providing information or from anyone who may file a petition or may wish to otherwise institute a proceedings before the NRC;

2) Copies of the TUEC-Minority Owner agreements to be made upon immediately be served public and that they petitioner's counsel; NRC staff to notify counsel to Tex-La, Mr. William 3)

Burchette, that he and other employees / attorneys are free -

to disclose any safety related information about Comanche Peak to anyone who is currently a party to any on-going or future contemplated licensing proceedings related to Comanche Peak.

Petitioners would be pleased to provide a member of your staf f with any further information you or members of the Commission may wish to censider before acting on the above requested relief.

Respectfully submitted,

,s f[ ] .

Michael D. Kohn Stephen M. Koh'n Counsel to Petitioners Chairperson, National Whistleblower Center Board of Governors

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May 20, 1992 VIA TELECOPY AND MAIL

.Mr. R. Micky Dow, Director Public Relations, D.W.C.P.S.E.S.

322 Mall Elvd. #147 Monroeville, PA 15146

Dear Mr. Dow:

Recently_you sent me a copy of your May 16, 1992 letter to the Complaints Division of the Securities & Exchange Commission regarding the: Comanche Peak Steam Electric Station. In addition, yeste'rday, as well as last week, you tried unsuccessfully to reach me by telephone.

On behalf.of my client Tex-La Electric Cooperative of Texas, Inc.'(" Tex-La"), I wish to advise you that, under Article IX of Tex-La's! January 30, 1990 settlement agreement-with Texas Utilities Electric _ Company ("TU Electric"), Tex-La, as well as its employees, attorneys and other consultants, are precluded from assisting or cooperating in any way with your organization, or_with any other third party, in opposing TU Electric in connection with the licensing of Comanche Peak, _ including. the related antitrust issues addressed in your May 16 letter.

Therefore, neither I nor any of my colleagues at this firm can be of any help-to you in this matter and I would very much appreciate it if you would refrain from further attempting to contact any of us. Thank you for your. cooperation and understanding.

Sincerely, ,

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William H. Burchette WHB/dms cc: Robert Wooldridge

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