ML17212A254

Partial Response in Opposition to Parsons & Whittemore 810424 Petition for Leave to Intervene.Petition Is Untimely & Fails to Show Sufficient Interest.Certificate of Svc & Supporting Matl Encl

ML17212A254
Person / Time
Site:	Saint Lucie
Issue date:	06/26/1981
From:	GREEN D G FLORIDA POWER & LIGHT CO., LOWENSTEIN, NEWMAN, REIS, AXELRAD & TOLL
To:	Atomic Safety and Licensing Board Panel
References
ISSUANCES-A, NUDOCS 8107020472
Download: ML17212A254 (103)

Text

REGULATORY INFORMATION DISTRIBUTION SYSTEM(RIDS)ACCESSION NEER!8107020472'OC',

DATEt'1/06/2b" NOTARIZED:.-

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Atomic-SafetyandLicensing BoardPanelDOCKE~T>>005000389

SUBJECT:

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inopposition'to=

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tointervene',Peti tion,isuntimely8,fails<toshowsufficient'nto'r est,'Certificate>

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LiTTR~ENCL' e1s~~%lt1'~)l'tg',i~+0IIp FPL-6/26/81UNITEDSTATESOFAMERICA9NUCLEARREGULATORY COMMISSION BEFORETHEATOMICSAFETYANDLICENSING BOARDDOCKS<oUS'HRGgUNg91981<1>OiiiceogiveSects&geeiIUnES

<@@+QgnQlIntheMatterofFLORIDAPOWER6LIGHTCOMPANYg2.714(c),herebyfilesapartialresponseinopposition tothe"Petition ForLeaveToIntervene AndRequestForHearing"(Petition) filedinthisproceeding onApril24,1981,(sevenyearsandfourmonthslate)byParsons6Whittemore, Inc.anditssubsidiary, Resources Recovery(DadeCounty),Inc.(Peti-tionerorP&W).FPLopposesthePetition, ongroundswhichfallintotwocategories.

First,evenhaditbeenfiledtimely,thePetitionwouldnotbesufficient tosupportintervention inthisproceeding.

Tobeginwith,Petitioner basesitsrighttointervene uponitsallegedstatusasaQualifying FacilitywithinthemeaningofthePublicUtilities Regulatory PoliciesActsof1978(PURPA).(PURPA5201,16U.S'.C.g796(Supp.III1979)).((However,contrarytoitsrepresentations, Petitioner doesnotlawfullycontrolsuchafacility.

ThusthePetitionfails[Ctodemonstrate acognizable interestonthepartofPetitioner rPebs(sn-abgpss9~oisxov020(fQ'DocketNo.50-389A)(St.LuciePlant,UnitNo.2))June26,1981J~PARTIALREsPQNsEQFFLQRIDAPowERsLIGHTs~I~~3thEQCOMPANYINOPPOSITION TO"PETITION JUL01198t~FORLEAVETOINTERVENE ANDREQUEST~~ggFORHEARING"FILEDOUTOFTIMEBYPARSONS6WHITTEMORE, INC.ANDRESOURCES RECOVERY(DADECOUNTY)INC.v'.cgltl~Florida~Power 6LightCompany(FPL),pursuantto10CFR J,I*W1'AIIW~sd41P~4 whichwouldsupportintervention inthisoranyotherNRCproceeding.

Moreover, thePetitionfailsutterlytoallegeasituation inconsi'stent withtheantitrust lawswiththespecificity requiredbyNRCdecisions,

-anddoesnotaddresswhether"activities underthelicensewouldcreateormaintain" anysuchsituation.

(AtomicEnergyActg105(c)(2),

42U.S.C.g2135(c)(5}

(1976)).Petitioner wronglybelievesthatthemereassertion thatalicensecon-ditionpreviously imposedisnotbroadenoughsufficesasashowingwhichwouldsupportintervention inthisproceeding.

ThesecondgroundforFPL'sopposition isthatthePetitionwasfiledsevenyearsandfourmonthslateandthatitfailstodemonstrate goodcauseforsuchlatefilingandtomeettheotherrequirements forlateintervention pre-scribedintheCommission's rules.BecauseFPL'sApplication forIssuanceofSubpoenas isstillpending,itcannotatthisjuncturebringbeforetheBoardallofthefactswhichit.believesarepertinent

.toanevaluation ofthelatePetition.

However,FPLfilesthisPartialResponsenowfortworeasons.First,FPLhasre-centlybeenabletoobtainfromDadeCountysomeofthedocu-mentspertinent toPetitioner's contractual obligations.

"/SeeKansasGasandElectricCo.l(Wolf CreekGenerating Stat@on,UnrtNo.1),ALAS-279, 1NRC559(1975);KansasGasandElectricCo.(WolfCreekGenerating Station,UnztNo.1),ALAB-299, 2NRC740(1975).

Thesedocuments.

confirmthetenuousnatureofP&W'sasser-tions.Consequently, FPLbelievesthatthelatePetitioncanbedismissed atthispointevenwithoutconsideration ofwhatstillremainsundisclosed.

Second,apromptdisposi-tionofthisPetitionisintheinterestofallparties.WhiletheBoardisconsidering thisPartialResponse, FPLbelievesthatitssubpoenas shouldbeissued.IftheBoarddecides,asFPLbelievesismerited,that.thelatePetitioncanbedisposedofwithoutawaitingadditional information adversetothePetition, theBoardcanissueitsordertothateffectandtherebyexpediteresolution ofthematter.If,ontheotherhand,theBoardwishestowaitforFPL'scompleteresponsetothelatePetition, FPLwillfilesucharesponsewithintendaysofexecuting thesub-poenasandreceiving thedocuments whichP&Whasrefusedtodisclose.

HadnotP&Wopposedthesesubpoenas, thiscouldhavebeenaccomplished longago,andFPL'scompleteresponsewouldalreadyhavebeenonfile.I.Introduction andBackroundInordertoplacethePetitioninitsproperperspective inthisproceeding, FPLwillsummarize brieflytheprocedural historyandthecurrentstatusoftheproceeding, Petitioner's filingsinthisandotherlicensing proceedings forSt.LucieIIUnitNo.2,andtherequirements wh'ichtheinstantPetitionmustmeet.

A.TheInstantProceedin Thisproceeding involvestheantitrust reviewassociated withissuanceoftheconstruction permitforSt.LucieUnitNo.2.Itbeganinlate1973whentheCommission offeredanopportunity foranyinterested persontofile,nolaterthanDecember28,1973,apetitiontointervene onantitrust grounds.Nopetitions werefiled,andinMayof1977theCommission issuedaconstruction permitforSt.LucieUnitNo.2.InAugust1976,beforeissuanceoftheconstruction per-mitbutsome31monthsafterthetimeforfilingapetitiontointervene onantitrust groundshadexpired,FloridaCitiesfiledsuchapetition.

ThatpetitionwasreferredtoanAtomicSafetyandLicensing BoardwhichgrantedtheCities'equest forlateintervention.

(FloridaPoweraLihtCo.(St.LuciePlants,Units1and2),LBP-77-23, 5NRC789(1977)).Thegrantofintervention wassubsequently upheldbytheAppealBoard(FloridaPower&LihtCo.(St.LucieNuclearPowerPlant,UnitNo.2),ALAB-420, 6NRC8(1977))andtheCom-mission(FloridaPower&LihtCo.(St.LuciePlant,UnitNo.2),CLI-78-12, 7NRC939(1978)).Inthecourseofthesub-sequentproceeding, FPL,theUnitedStatesDepartment ofJustice(Justice) andtheNRCStaffenteredintoasettlement agreement whichresolvedthedifferences amongthem.Thesettlement agreement imposes':upon FPLasetoflicense,tconditions forSt.LucieUnitNo.2.Theintervenor Citiesdidnotjoininthesettlement amongJustice,theStaffand FPL,andthese'ttlement explicitly recognizes theBoard'sauthority toimposeadditional ordifferent licenseconditions afterahearingiscompleted, shouldthatbenecessary.

JusticeandtheStaffhaveadvisedtheBoardoftheirviewthatiftheconditions providedinthesettlement areattachedtotheSt.LucieUnitNo.2construction permit,activities underthatlicensewillnotcreateormaintainasituation inconsistent withtheantitrust laws.OnApril24,1981theBoardissuedaMemorandum andOrderwhichacceptedtheSettlement Agreement asfiled,madeeffec-tiveimmediately theproposedlicenseconditions, andallowedIntervenor Cities30days"toproceedwithanylitigation inthisproceeding theybelievenecessary tocurethesituation inconsistent withtheantitrust lawsallegedbythemtobecreatedormaintained bytheactivities undertheSt.LucieUnit2license."

(Memorandum andOrder,pp.12-13).B.ThePetitioner's FilinsTheinstantPetitionisthesecondfilingwhichPetitioner hasmadewiththisCommission seekingtointervene, onanti-trustgrounds,inalicensing proceeding forSt.LucieUnitNo.2.-OnApril7,1981,Petitioner soughttointervene, solelyonantitrust grounds,inthehealth,safety,andenviron-mentalproceeding toconsidertheissuanceofanoperating

"/Moreover, onJune22,1981,Petitioner submitted totheDirectorofNuclearReactorRegulation afilingre-questinginstitution ofanenforcement actionagainst,FPLvis-a-vis theconditions approvedbythisBoardonApril24,1981.FPLbelievesthisfilingtobepatentlywithout.meritandwillrespondaccordingly.

licenseforSt.LucieUnitNo.2.OnMay6FPLfileditsresponsetothatintervention, pointingoutthatantitrust issuescouldnotbe..considered insuchaproceeding; thatPetitioner hasnointerestinanylicensing proceeding forSt.LucieUnitNo.2;thatthereisnoantitrust reviewnowpendingfortheSt.LucieUnitNo.2operating license,andthepleadings ofPetitioner providednogroundsforiniti-atingsuchareview;andthattheantitrust allegations whichPetitioner hadputforthwerenotsufficient topro-videabasisforanyNRCantitrust, proceeding, andwereunmeritorious inanyevent.ThePetitionwasproperlydeniedbytheoperating licenseBoardbyOrderdatedJune3,1981.P&Whasnoticedanappeal.OnApril24,1981,Petitioner madetheinstantfiling,inwhichitrequested leavetointervene "inthisconstruction licensing proceeding" andrequested theCommission toholda".limited" antitrust hearing.ThepurposeofthePetitionistosupportPetitioner's requestforlateintervention inthisconstruction permitproceeding and,tothatend,thePetition"focusesuponthereasonsforPetitioner's delayedfilingofitsintervention papersinthisconstruction licensing pro-1ceeding."

(Petition, p.3).Assupport,forthesubstance ofitsintervention, Petitioner relieson,andincorporates byreference, itsApril7filingsbeforetheLicensing Boarddesignated tohearthehealth,safety,andenvironmental aspectsoftheSt.LucieUnitNo.2operating'icense.'"/

"/Forpurposesofidentification wewillrefertotheApril24construction

.permitfilingasthe"Petition."

TheApril7filingswillbereferredtoasthe"OLPetition" andthe"OLBrief,"andcollectively asthe"OLFiling.'-'

TheOLFilingInitsApril7..filing intheoperating licensereview,Petitioner assertsaninterestbasedexclusively ontheclaimthatitisaqualifying smallpowerproduction facilityen-titledtocertainbenefitsunderPURPAandthatoperation ofSt.LucieUnitNo.2underthetermsofthelicenseconditions willbeinimicaltothosebenefits.

Morespecifically, Peti-tionerstatesthatithas"recently completed" construction ofasolidwasteprocessing facilityinDadeCounty,Florida,whichwillprocesssolidwaste,convertcombustibles intofuel,andburnthefueltocreatesteam(OLPetition, p.2).Inconjunction withthesolidwasteprocessing

facility, anelectricgenerator willusethesteamtogenerateelectricity.

Petitioner contendsthatit"ownsandistestoperating" theelectricgenerator.

(OLBrief,p.5).Petitioner assertsthatthefacilityisaqualifying smallpowerproduction facilitywithinthemeaningofSection201ofPURPA,16U.S.C.5796,andtheimplementing regulations (18CFRPart292)promulgated bytheFederalEnergyRegulatory Commission (FERC),andcon-tendsthat"[It]hascompliedwiththerequirements ofPURPAandhastakenthenecessary stepstosecurethebenefitstowhichitisentitled,"

bynotifying theFERCthatitisaqualifying facilityunderPURPA,andnotifying FPLthatit"'willbeginsalesofelectricenergytoFloridaPoweraLightCo.'"withinashorttime.(OL'Brief, p.6),.Peti-tionerfurthercontendsthatithasalsosoughttoexplorecompetitive opportunities forsalestootherelectricutilities andtothatendhasaskedFPLtoconfirmthatit"'willtrans-mitelectricity inbehalfof[Petitioner]

topotential customers otherthanFPaL.'"(OLPetition, p.3).Petitioner allegesthatifFPLispermitted tooperateSt.LucieUnitNo.2underthetermsofthelicenseconditions whichwereattachedtotheconstruction permitforSt.LucieUnitNo.2pursuanttotheApril24,'1981orderbythisBoard,a"'situation inconsistent withtheantitrust laws'aybecreatedormaintained."

(OLPetition, pp.2-3).Petitioner's complaint concernsSectionXofthelicenseconditions, whichfamongotherthings,requiresthatFPLprovidetransmission servicesforelectricity producedbyqualifying smallpowerproduction facilities incircumstances andunderconditions whichPetitioner contendsareundulylimited.(OLPetition, p4)~Onthisbasis,Petitioner contendsitshouldbegrantedintervention for"thelimitedpurpose"ofbeingheardonthe"potentially detrimental impact"ofSectionXofthelicenseconditions onitsPURPArightsandcompetitive interests.

(OLPetition, p.9).TheInstantFilinPetitioner assertsthatitfiledthePetitionsevenyearsandfourmonthslateduetoa"lackofknowledge attributable tothesecrecyofthesettlement process,"

andallegesthat,~fbecauseofthissecrecy,itwasnot,awareofanypossibleCeffectoftheproceeding onits"rights"untilit."unearthed" theproposedsettlement agreement whichitclaimswasonlyrecentlymadepublic.-(Petition, pp.7-8).*/Petitioner arguesthattheonlymeanswhichithasavail-abletoprotectitsinterestisthroughparticipation inthisproceeding (orthehealth,safety,andenvironmental proceed-ing)andcontendsthatifitisnotallowedtointervene, FPLwillsucceedin"using"theNRCtohelpitmaintainandenhanceitsmonopolypower"inthewaysoutlinedin[theOL]BriefinsupportoftheApril7Petitioner (sic]."(Petition, p.8).Petitioner statesthatitsrightsare"deeplyaffected" bytheproposedsettlement becausesuchsettlement hasappar-entlybeennegotiated withoutregardtorightswhichqualifying facilities possessunderPURPA.Thus,Petitioner allegesthatitsparticipation inthisproceeding isnecessary todevelop-mentofasoundrecord,andthatnootherpartyisavailable torepresent thoseinterests.

(Petition, p.9).Finally,Petitioner contendsthatitsintervention willneitherbroadennordelaytheproceeding, becausetheissueswhichithasraisedinitsfilingswillbebeforetheCommis-sioninanyevent,andadetermination onthemmustbemade.(Petition, p.10).C.Standards A'lic'able 4othePe'tition TheCommission's rulesrequirethat,inordertobesuc-cessful,aPetitionmustdemonstrate,(l).

thenatureofPetitioner's

"/'Petitioner alsocontendsthat"requisite formalities" werelackinginthe'"publicnotice,"thoughitfailstoidentifywhatitbelievestho'seformalities tobe.

10rightundertheActtobemadeapartytotheproceeding; (2)thenatureandextentofPetitioner

'property, fi-nancial,orotherinterestintheproceeding; and(3)thepossibleeffectofanyorderwhichmaybeenteredintheproceeding onPetitioner's interest.

(10CFRg2.714(d)).

Moreover, inordersuccessfully toraiseantitrust issuesinaCommission proceeding, aPetitioner mustallegewithreason-ablespecificity a"'situation inconsistent.

withtheantitrust laws'"aswellas"'ameaningful nexusbetweentheactivities underthenuclearlicenseandthe"situations" allegedtobeinconsistent withtheantitrust laws.'"(WolfCreek,ALAB-279,1NRCat566).Petitions tointervene outoftimemustmeetadditional requirements, forlatepetitioners properlybearasubstantial burdeninjustifying theirtardiness.

(NuclearFuelServices, Inc.(WestValleyReprocessing Plant),CLI-75-4, 1NRC273,275(1975));seealsoSouthCarolinaElectricandGasCo.(VirgilC.SummerNuclearStation,Unit1),ALAB-642, NRC(June1,1981).First,thePetitionmustdemonstrate goodcauseforfailuretofileontime.Inaddition, thePetitionmustexplainclearlyfourotherfactors:theavailability, xfany,ofothermeanstoprotectPetitioner's interest; theextenttowhichPetitioner's participation mayreasonably beexpectedtoassistindeveloping asoundrecord;,the extenttowhichPet@-letioner'sinterestwillberepresented byexistingparties;andtheextenttowhichPetitioner's participation willbroadentheissuesordelaytheproceeding.

(10CFRg2.714(a)D).).. II.Petitioner

.LacksTheStatusOnWhichItsClaimOfInterestInAnNRCProceedi;n

':IsBa'sedPetitioner lackstherequisite interesttointervene, becausePetitioner hasnolegallycognizable interestinthesubjectmatterofthisproceeding, oranylicensing proceeding forSt.LucieUnitNo.2.Asnotedabove,theCommission's rulesrequirethat,inordertohesuccessful, thePetitioner mustdemonstrate, among.otherthings,itsinterestintheproceeding.

(10CFR52.714(d).)..

Withoutsuchashowing,thePetitionshouldbedismissed attheoutset.DuetoPetitioner's refusaltodiscloseanyofthefactsinitspossession, FPLdoesnotyethavealloftheinformation whichbearsonthisquestion.

Buttheinformation thatisavail-ableestablishes thatPetitioner cannotsatisfythiscriterion.

Petitioner's assertion ofinterestinanylicensing proŽceedingconcerning St.LucieUnitNo.2restsonitsrepre-sentations totheeffectthatitlawfullyownsandcontrolsasolidwasteprocessing facilityinDadeCounty,Florida,aswellasanelectricgenerator whicnwillproduceelectricity fromsteamraisedbythesolidwastefacility(OLBrief,p.5)andthatthefacilityisa"qualifying smallpowerproduction

• /facility" withinthemeaningofPURPA.~Petitioner statesthatithas"complied withtherequirements ofPURPAandhas"/SuchafacilityisentitledtocertainbenefitsunderPURPAanditsimplementing regulations.

16U.S.C.g824a-3(Supp.III1979);18CFR5292.101,etseq.

12takenthenecessary stepstosecurethebenefitstowhichitisentitled[underPURPA]."(OLPetition, p.3).Such"necessary steps"includeanotification totheFERCthatitisaqualifying facilityunderPURPA,-andnotifying FPLthatitwillbegintosellelectricenergytoFPLwithinashorttime.Petitioner alsoallegesthatithassoughtassur-ancefromFPLthatitwilltransmitelectricity forPetitioner topotential customers otherthanFPL.(OLPetition, p.3).WhatPetitioner hasfailedtodisclosetotheCommission isthatcontracts areinexistence whichdefeatanylegalright'nPetitioner's parttotitletotheelectricgenerator andtoanyright,title,orinterestintheelectricoutputfromthefacility.

Whatfollowsisabriefaccountofthepertinent facts.OnMayll,1976theBlackClawsonParsons-Whittemore Organization submitted a"Proposal" toMetropolitan DadeCountyfora"Resource RecoveryPlant."TheProposalencompassed theconstruction ofasolidwasteprocessing facility(SWPF),whichwouldbeownedbytheCountyandoperatedbythe'contractor foranagreeduponfee,andanelectrical generation

"/Petitioner submitted aNoticetoFERConMarch13,1981,claimingitmetPURPAsmallpowerproducerqualifications.

Petitioner apparently contendsthatthemerefilingofsuchanoticeentitlesittosmallpowerproducerstatus,irrespective oftheimplications,'f theunderlying facts.FPLdisagrees.

OnMay7,1981FPLfiledaProtest,PetitionforaDeclaratory Order,andPetitiontoIntervene, arguingthatPetitioner isnotsoqualified'and thatFERCshouldsodeclare.,

FERChasnotyetruledonthematter. facility(EGF)whichwouldbeownedandoperatedbyFPL.-*/Itfollowedtwoyearsofnegotiations.

Ultimately, thesearrangements becamediscreteformalcontractual commitments, coveringtheSWPFandthegenerating

facility, respectively.

InthecontractrelatingtotheSWPF,Petitioner, throughoneofitssubsidiaries, agreedtobuildtheSWPFandvesttitleandownership inittoDadeCounty.PurchaseContractforSolidWasteDisposalFacility(Sept.28,1976)atg5.02.Eventhatcontract, however,containspro-visionsestablishing thattheelectrical generating facilityistobeownedandoperatedbyFPL.~*'Thiscommitment tovestownership oftheelectricgenerating facilities inFPLwassealedbyacontractbetweenFPLandDadeCounty,executedinlate1977[theEGFAgreement].

Thatcontractprovidesthatuponcompletion ofconstruction andaftercertaintechnical testshavebeensatisfactorily completed, butbeforeanyelectricenergyhasbeenproducedbythe<</ThustheProposalrepresented, interalia,that:"nturbogenerator module,completewithtransmission facilities, willbeprovidedfortheaccountofFloridaPower6LightCompany."

ProposaldatedMayll,1976,Description ofProcessandEquipment, pageno.2-12.ExhibitAhereto."*/ThusthePurchaseContractprovides:

l.05Electrical Generation

~FacilitThe"Electrical Generation Facility" shallmentheturbo-generator andthefacilities relatingtheretotobeownedbyFloridaPower&Lightandtobebuiltpur'suant toanagreement tobeenteredintowithFloridaPower"6LightCompanyasprovidedinSection11.02hereofandasmoreparticularly described insuchagreement.

Thepertinent portionsofthePurchaseContractareannexedheretoasExhibitB.

-14facility, DadeCountywilltransfertoFPLthetitletotheIelectricgenerator andthosedirectlyassociated transmission linesrequiredtoconnecttheelectricgenerator totheFpLgrid.Thereafter, FPLwillownandoperatetheelectricgenerators andassociated transmission facilities.

TheelectricenergywillgointoFPL'ssystemand.betreatedthesameasallotherenergywhichFPLgenerates toservetheneedsofitscustomers.

DadeCountyhasalsocontracted toleasetoFPLthoseportionsofthesiteonwhichtheelectricgenerator islocated,sothatFPLmayuseandoccupythesitetooperatetheelectricgenerator andassociated transmission linestogenerateandtransmitelectricenergy.Asiscommoninmajorcommercial contracts ofthisnature,DadeCountyhaswarranted thatitislegallyauthorized toperformitsobligations underthecontractandislegallyobligated tocomplywiththetermsandconditions setouttherein.-Znshort,thecontractreflectsthatDade*/Countycontemplates holdingsufficient titletothesite,theelectricgenerator, andthetransmission facilities topermittheCountytoperformunconditionally itsobligations totransfertoFPLownership ofsuchfacilities andaleasehold interestintheunderlying realestate.Moreover, FPLhasnowbeenabletoobtainfromDadeCountyacopyofa"Restated Assumption Agreement."

Bythatcontract,

"/AcopyofthecontractbetweenFPLandDadeCountyisattachedtotheaffidavit ofJ.T.Blount,FPL'sAssistant Corporate Secretary, andwasprovidedtothisBoardasAppendixAtotheresponsefiledbyFPLonMay6,1981,inDocketNo.50-389-0L.

Petitioner agreed4oassumealloftheprincipal obligations ofDadeCountyunderitscontractwithFPL.-Thepertinent

• • /provisions areasfollows:2.Construction oftheFacilit(a)theContractor shalldesign,finance(duringconstruction) andconstruct theElectrical Generation

Facility, asprovidedintheEGFContract[according tovariousprovisions oftheEGFContractbetweenFPLandDadeCounty].TheContractor

[i.e.,Petitioner) shallalsotransfertitletotheEGFTransmit.ssa.on Facxlztxes andtheFaczlzttotheCountortoFPL,asdirectedxnwritingbytheCounty,xnaccordance withSections7.0and19.2oftheEGFContract.

[Emphasis added].3.SaleofEGFandSteam.After'construction obliatedundertheEGFContracttoselltheElectrical Generation FacilxttoFPLandtodeliverandsellQualitSteamtoFPLznaccordance withSections5.12,5.13and5.14oftheEGFContract, including, butnotlimitedto,obli-gationstomakepaymentstoFPLinaccordance withSection5.19oftheEGFContractandtoberesponsi-blefordamagesresulting fromthefaultyoperations oftheSWPFandnonquality steaminaccordance withSections8.4and5.15oftheEGFContract,

'andtheContracto'r

'[i.e.,Peti'tip'nerj'shal'1

'assumea'IMoMtheCountsob'liatmo'nsu'nder'such'sect~on's as'iftheContractor wereaa'rt:tothe'GF ContractxnxeuofteCount.EmpasksaeUndertheRestatedAssumption Agreement, Petitioner, byassumingtheobligations ofDadeCounty,hascommitted toOfcourse,FPLstillhasnoaccesstoanyoftheagreementsg memoranda andotherdocuments relatingtothisagreement whichareinthesolepossession-

'ofPetitioner.

fTheexcerptsinthetextaretakenfromthe"Restated andAmendedAgreement forAssumption ofRightsandObligations UnderElectrical Generation FacilityandSteamDeliveryAgreement, datedMay5,1978,andannexedheretoasExhibitC.

-16vestinFPLtheownership andoperation oftheelectricgenerating

facility, andhasitselfconfirmed thatFPLhasthevalidlegalrighttothegenerating facilityanditsoutput.-YetitisthatoutputwhichPetitioner nowseekstoappropriate, inderogation oftherightsofFPL(andthecitizensofDadeCountyaswell).Attheheartofthematteristhecontractual disputebetweenPetitioner andDadeCounty.According toaComplaint filedbyDadeCountyintheU.S.DistrictCourtinMiami,DadeCountyhasplacedinescrowtheentirepurchasepriceoftheSWPFfacilityandequipment

--$128million--tobepaiduponadequateassurance ofperformance byPetitioner; however,Petitioner hasfailedtoprovidethoseassurances andhaspur-**/portedtorepudiate itscontractual commitments.-

Petitioner isrefusingtohonoritslegalobligations untilandunlesssomeone-perhapstheCounty,perhapsFPL-paysPetitioner moremoneythanitscontractprovides.

FPLisinformedthatthesecontractual disputesbetweenPetitioner andtheCounty***/arenowinarbitration.-

FPLstandsreadytoperform,pursuanttothosecontracts, assoonasPetitioner fulfillsitsobligations

-eithervoluntarily orbyadjudicated decree.Complaint, paras.33,38-40.AcopyoftheComplaint isannexedtoFPL'sApplication forIssuanceofSubpoenas, datedMay8,1981.DadeCounty'slawsuitwasdismissed onthegroundoflackofdiversity ofcitizenship betweentheparties.(MetroolitanDade'Count v.Parsons6Whitte-more,Inc.,No.80-333-Civ.-EDS S.D.'la.).

"**/Atthesametime,FPLisengagedinsettlement negotiations involving Parsons&Whittemore andDadeCounty.

17Petitioner's qlaimofinterestinthisproceeding isthatitcurrently "owns"theSWPFandEGFfacilities becauseitisretaining thelegaltitletothem.Whatthisargumentignorescompletely isthat,Petitioner retainssuch"title"bybreaching itscontractual obligations toFPLandDadeCounty.Petitioner hasnolawfulrighttotho'sefacilities ortoappropriate theiroutput.TheburdenisonthePetitioner todemonstrate thelegiti-macyofitsclaimofinterestinanyNRCproceeding inwhichitseekstoparticipate.

Here,Petitioner's abilitytodosodependsuponitsabilitytodemonstrate beforethisCommission theinvalidity ofsolemncontractual commitments which,ontheirface,defeatPetitioner's claim.-ItisnotthefunctionoftheNRCtoresolveacommercial contractual disputeamongprivateparties.Butthatiswhatitwouldhavetodotodetermine thatPetitioner hasacognizable interesthere.Inthisinstance, thePetitioner avoideddealingwiththesequestions initsPetitionbysimplynotapprising theCommission oftheexistence ofcontracts which**/placeaseriouscloudovertheclaimsmadeinthePetition.-

"/Inessence,Petitioner asktheBoardtoassumethosecontracts, which~areinfullforceandeffect,areinvalid.InitsBriefinOpposition toApplication forIssuanceofSubpoenas, Petitioner citesRule:25(c)oftheFederalRulesofCivilProcedure forthe'roposition thatithasaviable"interest."

Thisargumentismisconceived.

Rule25(c)providesthatwhenalitiganttransfers hisinteresttoathirdpartysubsequent tocommencement ofalawsuit,thethirdpartymaybesubstituted inthediscretion ofthecourt.Theruleisintendedtoprovide(footnote continued)

-18Petitioner's failuretosubstantiate theclaimsonwhichitsassertion o'f'interest isbasedisreasonenoughfordenialofthePetition, standingalone.Moreover, evenifPetitioner's contentions wereacceptedarcruendo, itsinterestwouldbetootenuoustosupportaPetitionaslateandasdeficient.

inother'respects asthisoneunderanycircumstances.

III.TheAntitrust ClaimsStatedinthePetitionAreNotSufficient toJustifyGrantingofthePetitionA.TheImposition ofSettlement LicenseConditions CannotJustifyPetitioner's Intervention Theallegations inthelatePetitionaregroundedupontheproposition thatifFPLispermitted tooperateSt.LucieUnitNo.2onthebasisofthelicenseconditions providedinthesettlement amongFPL,theDepartment ofJusticeandtheNRCStaff,thiswill"diminish qualifyi'ng facilities'enefits underPURPA."(Petition at5).Thatisnotsoandcannotbesoasamatteroflaw.(footnote continued).

anorderlymethodfordealingwithsubstituting newparties.Thatrulehasnoapplication here.Whatisinvolvedhereisathreshold questionastowhichofthetwolitigants, complainant orrespondent, hastheequitable andcognizable interestinthepowerinquestion.

Thatisamatterwhichinvolvesnota"transfer" ofinterest, butadetermination astowhethersuchinterestexists.Moreover, whatPetitioner contemplates isnotsubstitution ofathirdpartytoassertacontinuing claim,buttheextinction ofitsallegedclaimaltogether.

Fin-ally,theNRCRulescontainnoexpressanaloguetofederalRule25(c),hencetheCommission'vidently did'aotintendforsucharuletocontxolitsproceedings inanyevent,even-leavingasidePetitioner's misconception astoitsapplica-tion.'(Gen'era'1'l'ectric Company(Vallecitos NuclearCenter,GeneralElectra.c TestReactor),

LBP-78-.33, 8NRC461,466(1978).

19Anyconditions attachedtoFPL'slicenseforSt.LucieUnitNo.2willservesolelytoenjoinFPL.Itisanobviousproposition oflawthatnoinjunction placeduponFPLbytheNRCcandefeattheauthority ofanotherfederalagencywithcompetent jurisdiction toimposedifferent,andperhapsmorestringent, regulatory requirements uponFPL.Thesettlement licenseconditions expressly acknowledge thisinSectionXIII(c),whichprovides:

"Nothinghereinshallbeconstrued toaffectthejurisdiction ofFERCoranyotherregulatory agency."PURPAcontainsacomprehensive regulatory schemeregarding theobligations ofelectricutilities todealwithsmallpowerproducers, including theobligations toprovidewheelingandbackupservices.

Thatschemeisunaffected byanylicenseconditions imposedbythisCommission.

Thelicenseconditions donotandcannotmitigateFPL'sobligation tocomplywiththesmallpowerproducerregulations issuedunderPURPA.Petitioner's complaint isnothingmorethanthatthesettlement conditions donotprovideitwithsignificant advan-tagesinadditiontothoseitreceivesunderPURPAregulations.

Thecontention thataninjunctive condition doesnotgoasfarasonewouldlikeisnobasisfortheallegation thatactivities underthelicensewouldcreateormaintainasituation incon-sistentwiththeantitrust laws.Thus,totheextentthatthe'.Petition maybexeadascorn>>plainingthatthelicenseconditions themselves createormaintainasituation inconsistent withtheantitrust laws 20becausetheydiminishPetitioner's rightsundersomeotherregulatory scheme,thatcontention isgroundless asamatteroflaw.B.ThePetitionFailstoMeet,theSubstantive Standards forInter-ventioninan.Antitrust Proceedin Asnotedabove,theOLPetitionisdevotedalmostentirelytoairingPetitioner's dissatisfaction withoneoftheprovisions ofthesettlement licenseconditions.

Nomeaning-fuleffortismadetoallegetheindependent existence ofasituation inconsistent withtheantitrust lawswhichwouldbecreatedormaintained byactivities underthelicenseandwouldcallforremediallicenseconditions.:

Itisincumbent uponPetitioner tocomeforwardwithsuchallegations asacondition tointervention inanNRCantitrust proceeding.

Whereoneseekstointervene inanNRCantitrust pro-ceeding,hispetitionmustidentifywithspecificity the"situation inconsistent withtheantitrust laws"whichwillbecreatedormaintained byactivities underthelicense.Substantially morethanbareallegations mustbepleaded,forsimplyalleginga"situation inconsistent" andmouthinginaritualistic fashionthatthatsituation willbecreatedormaintained bytheactivities underthelicenseisinsufficient.

Tobesuccessful, thepetitionmustataminimumidentifythespecificprovisions oft'eantitrust lawswhichitisfclaimedwillbeoffendedbytheactivities, identifytherelevantmarketswhichitcontendsareatissue,anddescribehow 21activities underthelicensewilloffendthoseprovisions intherelevantmarket,(WolfCreek,ALAB-279, 1NRCat559;WolfCreek,ALAB-299, 2NRCat740).ThePetitionfailstomaketheseshowings.

Moreover, thesuccessful petitionmustshowa"meaning-fulnexus"betweentheactivities underthenuclearlicenseandthe"situation."

(Louisiana PowerandLihtCo.(Water-fordSteamElectricGenerating Station,Unit3),CLI-73-25, 6AEC619(1973);WolfCreek,ALAB-279, 1NRCat566).Petitioner makesnoefforttoallegeanynexusbetweenthesituation inconsistent withtheantitrust lawsandactivities undertheoperating licenseforSt.LucieUnitNo.2.Thisisnotsurprising inviewoftheabsenceofanyfactualbasisfordemonstrating suchanexus.TheclosestthatPetitioner comestoacknowledging anysuchrequirement isinparagraphs (18)and(19)oftheOLPetition, whereitstates,inessence,that'itsinterestwillbeaffectedbyFPL's"intended implementation" ofthesettlement conditions.

(OLPetition, pp.8-9).Asisdemonstrated above,thesettlement conditions affectPetitioner onlyinthattheydonotgoasfarasPetitioner wouldlikeinaddressing whatPetitioner contendsisasituation inconsistent w'ththeantitrust laws--a"situation" whichisnotallegedtobearanynexustoactivities underthelicense.Therequire-mentofsuchanexusisjurisdictional,

-andPetitioner's failuretoallegeanysuchnexusisfa'taltothesubstance of(itsallegations.

"/Waterford, 6AECat619.

22IV.TheAntitrust Allegations Contained inthePetitionAreWithoutMeritAstheforegoing sectiondemonstrates, Petitioner hasfailedutterlytoallegeasituation inconsistent withtheantitrust lawswhichwouldbecreatedormaintained byactivities underthelicense,andFPLdeniesthatanysuchsituation couldbeshown.Thefew,scattered references tosubstantive antitrust issuescontained inthePetitionaretransparently withoutbasisormerit.Petitioner refersintheOLBrieftotheFifthCircuit's decisioninGainesville Utilities v.FPL,573F.2d292,cert.denied,439U.S.966(1978)(OLBrief,p.4),withoutpro-vidinganyclueastohowthatdecisionrelatestoitsclaims.AlsoincludedintheOLBriefwithoutanyilluminating explan-ation(pp.12-13)isalistofallegations which'theCitieshavemade,andFPLhasdenied,inthisproceeding andinasuit,pendingintheU.S.districtcourtinMiami,Florida.Peti-tionerdoesnotassertthatitcanproduceanyevidenceinsupportoftheseallegations.

Theonlyreferences toanyrelationship betweenFPLandPetitioner whichmight,havecompetitive implications are*/confusedandinternally inconsistent.

-Atpage17oftheOL"/Theonlyreference tomarketstru'cture foundinPetitioner's filingsisParagraph (13)ofthe'OLPetitionwhichchargesthatFPL"possesses monopolistic controlovertheprovision oftransmission servicesinsouthern'andeasternFlorida."

FpLdeniesthatallegation andaversthatitcannotcrediblybemaintained inanyeventbyonewhichassertsthatitisasmallpowerproducer, andthuswouldbeentitledtotheassurance ofaccesstotransmission facilities, regardless oftheirownership, whichPURPAprovidestotheownersofsmallpowerproduction facilities.

23BriefPetitioner statesthat:"FP&L,ofcourse,wouldratherbuyelectricpowerfromqualified PURPAfacilities thancom-petewiththosefacilities forsalestoFP&L'sothercustomers."

Thefallacyofthisassertion isdemonstrated bythefootnoteonthesamepageoftheOLBrief,whichacknowledges thatanelectricutilityisrequiredbyFERCrulestopurchaseelec-tricityfromsmallpowerproducers attheutility's avoidedcost.Thusautilitycannotunderthelawprofitorreducethecostswhichitscustomers mustpayasaresultofmakinganysuchpurchase.

ContrarytoPetitioner's glibassertion, FPLhasnoincentive to"compete" tomakepurchases underthesecircumstances.

Moreover, Petitioner impliesthat'FPLseekstowithholdtransmission servicessothatFPLwillnotlosewholesale salestomunicipal utilities.

Tothecontrary, FPLhassoughtrelieffromtheobligation tomakeadditional wholesale sales,ontheground,interalia,thatthecostofproviding suchserviceexceedsincremental revenuesderivedbyFPL.TheFERCproceeding inwhichthatreliefwasdeniedtoFPListhatreferenced inthefootnoteonpage9oftheOLBrief.Apparently, Petitioner, initshastetocaptureaquoteoutofthatcontext,failedtoacquaintitselfwiththesub-jectmatteroftheFERCproceeding.

Thetransparent weaknessoftheseallegations isnotsurprising.

ThereisnodisputebetweenPetitioner andFPLwhichhascompetitive implications.

Norhasanyonewholaw-fullycontrolsaqualifying smallpowerproduction facility 24complained ofFPLsdealingswithhim.ThisPetitionispromptedbyPetitioner's apparentdesiretoescapefromitscontractual obligations toDadeCountyandtotakesomething thatdoesnotrightfully belongtoit,buttowhichFPLisentitledunderitsowncontractwithDadeCounty.Theideaofasserting antitrust claimsisbutanafterthought.

V.ThePetitionFailsToMeet.TheStandards ForLateIntervention ThePetitionfails,onallcounts,tomaketherequisite showingsforlatepetitions tointervene, andmusttherefore bedenied.ThePetitioniswoefullydeficient indemon-stratinggoodcauseforfailure"totimelyfile.Moreover, thePetitionfurtherfailstomakeanadequateshowingontheotherfourfactorswhicharenecessary tojustifyalatepetitiontointervene.

Petitions tointervene outoftimebearasubstantial 275),andpetitions whicharefiledegregiously late-suchasthisPetition, whichwasfiledsevenyearsandfourmonthslate--bearanextremely heavyburdenofpersuasion.

Lucie,CLI-78-12, 7atNRC939).A.ThePetitionFailsToDemonstrate GoodCauseForFailureToFileOnTime',:TheinstantPetitionisfiledsomesevenyearsandfourmonthslate.Therecanbenoexcuseforsuchtardiness, andindeedPetitioner hasfailedtoprovideone.

25TheCommission hasdirectedthatitsregulations withrespect,tolateinterventions (10CFR2.714(d))

shouldbestringently applied,"particularly inassessing thegoodcausefactor"andthatsuchscrutinyshouldbecomemorerigoroustheclosertheproceeding drawstocompletion.

ln-deed,theCommission hassaidthat"Averylatepetitionmustpresentaverystrongreasonforlateintervention."

St.Lncie,CLI-78-12, 7RRCat946-947.Petitioner's attempttoshowgoodcauseforitslatefilingfailstosurviveacloselook.Petitioner claimsthatits"delay[inrequesting inter-vention]wascausedbyalackofknowledge attributable tothesecrecyofthesettlement process"(Petition, p.8),statingthatitwasonlywhenit"unearthed" thesettlement agreement thatit"realized" FPLwasusing"thisproceeding" toundercutits"rightsasaqualifying PURPAfacility."

(Petition, p.7).Petitionex claimsthat,ithadnonoticeofthesettlement negotiations, andthateventhoughSectionXofthelicenseconditions "directly bearsuponPetitioners'ompetitive interests andPURPArights...theAgreement a/wasonlyrecentlymadepublic."-

(Petition, p.7)."/Petitioner appearstoallegethatsomesortofpublic"notice"wasrequiredwithrespecttothesettlement agreement, complaining thatsuch,'notice "consisted offilingacopyoftheAgreement intheNRC'docketroom,butdoingsowithoutattendant publicity ortherequisite formalities."

(Petition, pp.7-8).Petitioner failstospecifywhat"formalities" itbelieveswererequired.

-26Evenifthisweretrue,itcouldnotservetoexcusePetitioner's tardiness.

Petitioner basesitsclaimtolateintervention onthesettlement alone,andthatisfatal.EvenifPetitioner's filingisreadinthelightmostfavor-abletoPetitioner, themostthatitsaysisthattheinjunc-tionimposedonFPLinSectionXofthesettlement licenseconditions isnotbroadenoughtosuitPetitioner.,

Itisindisputable thatPetitioner isatleastaswelloffwiththeprotection ofanallegedly inadequate injunction asitwaswithnoinjunction atall.Petitioner hasnotcontended

• /otherwise.-

IfPetitioner hasanyclaimthattheNRCcanentertain itmustbebaseduponallegations ofasituation inconsistent withtheantitrust lawswhichpre-existed imposition ofthesettlement licenseconditions andwhichtheconditions donotadequately cure.Inshowinggoodcauseforextremelateness, Petitioner mustexplainwhyitnevercameforwardtocomplainofthesituation, notwhyitonlynowcomplains ofthebreadthofremedialconditions.

Onthatpoint,thereisnocasetobemade.Theproceeding itselfhasbeenpend-ingsinceanoticeinvitingsubmissions ofpetitions forleavetointervene waspublished intheFederalReisterin1973,andthisBoard'sordergrantingCities'ate petitionandL'Irequestforanantitrust hearingwas:published inApril1977."/Thelargelyrhetorical claimthatconditions imposedonFPL'sNRClicensecouldaffectPetitioner's rightsunderPURPAasadministered bytheFERCisobviously wrongasamatteroflaw.Beepp.18-20,~sura 27ViewingPetitioner's claimsinthebestpossiblelight,theBoardispresented withapetitioner whichknowingly orthoughtlessly satonthesidelines whileaproceeding wasrunningitslengthycourseandisnowdissatisfied withthescopeofreliefobtainedbythosewhoparticipated aspartiesintheproceeding.

Suchdissatisfaction cannotbeaccepted*/asgoodcauseforextremelateness.-

Inaddition, arulingon"goodcause"forlatenessneces-sarilyinvolveselementsofsubjective judgmentbytheBoard.ItisproperfortheBoardtotakeintoaccounttheevidencethat,thisPetitioner seekstousetheprocesses ofthisCom-missiontogaintacticaladvantage inacommercial contractual disputeinwhichithasbecomeinvolved.

(Seepp.10-14,~sura).Asonewhoseekstosheditselfofitscontractual obligations andtointerfere withtheperformance ofthecontractbetweenFPLandDadeCounty,Petitioner doesnotcometotheNRCwithcleanhands-aconclusion whichisbuttressed bytheabsencefromanyofPetitioner's filingsofacandidaccountofthecommercial situation.

AnotherfactorwhichweighsheavilyagainstPetitioner isitsrecalcitrant attitudetowardsopendisclosure.

AlatePetitioner hasanobligation tocomeforwardwiththefactsuponwhichhisPetitionforlateintervention canbeobjectively evaluated.

Fromtheoutset,PENhas"/E.g.,PuetSoundPower6LihtCo.(SkagitNuclearPowerProject,Unitsan,ALAB-5,10NRC-162(1979)..~

Naderv.NRC,513F.2d1045,1054-55O).C.Cir.1975$.

28soughttohaveitsPetitionevaluated onthebasisofonlythosefactsithaselectedtovolunteer.

InitsPetitionandsupporting papers,P&N'failed eventomentiontheexistence ofthecontractual disputesoutlineu, supra,whichhaveheenthecenterofallitsdealingswithFPL.Thisomissioncannotpersuasively bedefendedbyPetitioner's argumentthatthesefactsaresomehow"extraneous."

Thatisadetermination whichistheCommission

',notPetitioner

'tomake,andshouldbedetermined onarecordwhichisfullyandfairlyinformed.

ThefactisthatPetitioner decideditspetitionwouldnotbeadvancedbyhavingthesefactsbroughtforward.Tothisday,Petitioner adamantly resistsFPL'seffortstohaveequalaccesstothefactsinitspossession.

Thiscontinued resis-tancetoafullyinformedevaluation ofitsassertions isamattertheBoardmayweighheavilyinassessing whetherPetitioner ha'scomeforwardwithashowingthatwouldjustifyacceptance ofitsextraordinarily latePetition.

B.ThePetitionFailsToMakeAnAdequateShowingOnAnOfTheFourFactorsFailuretoshowgoodcauseforUntimelyfilingofapetitionisnotnecessarily fataltoarequest,forlateintervention.

However,theburdenofjustifying suchanintervention thenfallsupontheremaining fourfactorsin10CFR52.714(a),

andtheshowingwhichisrequiredunderthosefactorsthenbecomesconsiderably greaterthanit

-29showbelow,Petitioner failstojustifyitslateintervention onthebasisofanyofthefourfactors.1.OtherMeansareAvailable toProtectPetitioner's InterestItisFPL'sposition, forthereasonsgivenonpp.10-14/~sura,thatPetitioner hasfailedtomakeashowingofinter-estsufficient tosupportitsintervention inanyNRCpro-ceeding.However,evenifPetitioner's assertions areacceptedarcruendo, itisclearthattheinterestthatitseekstopro-*/tectarisesunderPURPAandnottheAtomicEnergyAct.-TotheextentthatPURPA,oritsunderlying

policies, oranyimplementary regulations adoptedbytheFERCentitlePeti-tionertoreceivetransmission servicefromFPL,Petitioner isfreetoassertitsrightsbeforetheFERC.Indeed,PURPAcontainsprovisions (16U.S.C.824;(Supp.III1979))fwhichempowerFERCtoorderanyelectricutilitytoprovidetransmission serviceupontheapplication ofanyqualifying smallpowerproducer.

Itisnotnecessary toconsiderherewhethertheexis-tenceofsuchprovisions inPURPAwouldrequireorpermitinactionbytheNRConthemeritsofissuesproperlybeforeit.Allthatmustbeconsidered hereiswhetherifthePe-titionisdeniedongroundsofuntimeliness thePetitioner willItisalsoFPL'spositionthatPetitioner hasfailedtoallege,andcannottruthfully allege,anysubstantial nexusbetweenitscomplaints andactivities underthelicenseinissuehere.See,pp.17-18,~sura.

30beleftwithoutanylegalforum.Clearly,thatwillnotbethecase.2.Participation byPetitioner WouldNotAssistinDeve'loinaSoundRecordPetitioner arguesthatitsparticipation would.assistindeveloping asoundrecordbecauseQualifying PURPAFacili-tieshave"beenaffordedlessfavorable treatment thanotherelectricgenerators" underthe"Settlement Agreement.

AndonlyPetitioner hasintervened torepresent theinterests ofsuchfacilities.

Asnoted,Petitioner's complaint isthatthesettlement licenseconditions somehowadversely affecttherightswhichqualifying facilities aregivenunderPURPA.Asshownabove,thatisnotthecase,andthoserightsarenotaffectedinanyrespect.-Moreover, FERCexercises comprehensive

• /oversight authority vis-a-vis suchfacilities andcandevelopwhateveradditional orlesserregulatory requirements appearappropriate ascasesarisebeforeit.Petitioner's argumentthattheNRCshouldendeavortodelineate theproperregulatory treatment ofthosefacilities here,"sincePURPAwasenactedbuttwoyearsago,"ismisconceived.

Thedevelop-mentoftheproperregulatory requirements concerning suchfacilities willbechartedbyFERCas,,experience warrants.

"/Furthermore, Petitioner, relyingasitdoesonawrongfulbreachofitscontractual commitments nowinarbitration asthegenesisforallofitsclaims,isimplicated incongeries offactswhichhardlymakePetitioner arepre-sentative foranyothers.

31Thelicenseconditions neitherinhibitthisdevelopment norinsulateFPLinanywayfromitseffect.Asidefromitscomplaint aboutthebreadthofonefeatureofthesettlement licenseconditions, Petitioner doesnotsuggestthatithasanyevidencetocontribute toresolution ofthesubstantive issuesremaining intheproceeding, whichconcernswhetheractivities underthelicensewouldcreateormaintainasituation inconsistent withtheantitrust laws.Rather,Petitioner's involvement wouldrequireanextremely complicated inquiryintothecommercial dealings(regarding wastedisposalfacilities) betweenPetitioner, DadeCounty,FloridaFPL)andperhapsothers,extending backto1974~ThusPetitionexs participation wouldnotenhancethedevelopment oftherecordinthiscase.3.Reresentation bExistinPartiesBecausePetitioner hasnolegallycognizable interestintheseproceedings, andhasnotproperlyallegedasituation

~inconsistent withtheantitrust lawswhichbearsa"substantial nexus"toactivities underthelic'enseforSt.LucieUnitNo.2,thisissueisirrelevant totheconsideration ofwhether*/Petitioner shouldbeallowedtointervene.-

"/lnanyevent,thisfactorisone'hichisgiven"relatively lesserweight"thanthoserelatingtodelayorbroadening Summer,~aura,mimeoopinionat23-24.

324.Broadening ofIssuesorDelayofProceedin Petitioner arguesthatitsintervention wouldnotbroadentheissuesordelaytheproceeding, becauseithasdone"nomorethanarticulate existingissueswhichNRCmustdecidewithorwithoutourparticipation."

Thisiswrong,ineveryrespect.First,itisnottruethattheNRCwillbecalledupontodecidetheissueswhichPetitioner seekstoraise,"withorwithoutfits]participation."

TheissuesbeforetheBoardnowconcernwhethertheCitiescanestablish asituation inconsistent withtheantitrust lawswhichwouldbecreatedormaintained byactivities underthelicense,and,ifso,whetheranyrelief'nadditiontothatprovidedinthesettlement conditions isappropriate toremedythatsitu-ation.ThereisnoneedfortheBoardtogivefurtherattention tothesettlement conditions, excepttotheextentthatthepro-ceedingsonthemeritsleadittodoso.Theevolvingrelation-shipbetweenFPLandthosewhoareaccordedcertainprivileges as"smallpowerproduction facilities" undernewanduntestedfederalandstateregulatory schemesemanating fromPURPAisacomplexsubject,whichisnotlikelytobedirectlyinissueinthisproceeding unlessthePetitionisgranted.FPLbelievesthatthereisvirtually norelationship betweenthatsubjectandtheantitrust issueswithwhichthisproceeding iscon-Second,asdiscussed previously, thedealingsbetweenPetitioner andFPLcannotbeconsidered inanymeaningful way

-33withouttheBoard'aconsidering andresolving, atleastforpurposesoftheproceeding, thecommercial disputewhichsur-roundstheDadeCountyfacility.

Plainly,airingofthiscommercial disputewouldsubstantially broadentheissuesinthisproceeding andthusprolongit.Finally,theriskofdelayinissuanceoftheoperating licenseforSt.LucieUnitNo.2wouldbesubstantial ifthePetitionweretobegranted.FPLestimates thatconstruction ofthefacilitywillproceedonaschedulewhichwouldrequirethatanoperating licensebeissuedbyOctober1982inordertoavoiddelayincommercial operation ofSt.LucieUnitNo.2.Ifthisalreadycomplexproceeding werebroadened toincludeexamination ofissueswhichmayaffectsmallpowerproduction facilities aswellasconsideration ofthecommercial arrange-mentssurrounding theDadeCountyfacility, therewouldbereasonforconcernthattheproceeding, including discovery ofthenewpartyandevidentiary

hearings, couldnotbecompleted bythatdate.IfgrantingofthisPetitionweretodelaycommercial operation ofSt.LucieUnitNo.2,FPL,itscustomers andthepublicinterestwouldsuffergrievousharm.Thatriskshouldbeweighedheavilyagainstgrantingapetitionreceivedmorethansevenyearslate.Conclusion

<gfForthereasonsgivenabove,FPLurgesthatthePetitionbedenied.

Respectfully submitted, DATED:June26,1981rnLoweein,Newman,Reis&Axelrad1025Connecticut Avenue,N.W.Washington, D.C.20036HerbertDymCovington

&Burling88816thStreet,N.W.Washington, D.C.20006Attorneys forFloridaPower&LightCompany UNITEDSTATESOFAt%RICANUCLEARREGULATORY COMMISSION BEFORETHEATOMICSAFETYANDLICENSING BOARDIntheMatterofFLORIDAPOWER&LIGHTCOMPANY(St.LucieNuclearPowerPlantUnitNo.2)DocketNo.50-389ACERTIFICATE OFSERVICEIherebycertifythatcopiesof"PARTIALREPONSEOFFLORIDAPOWER&LIGHTCOMPANYINOPPOSITION TO'PETITION FORLEAVETOINTERVENE ANDREQUESTFORHEARING'ILED OUTOFTIMEBYPARSONS&WHITTEMORE, INC.ANDRESOURCES RECOVERY(DADECOUNTY),INC."wasserveduponthefollowing personsbyhanddelivery*

orbydepositintheU.S.Mail,firstclass,postageprepaidthis26thdayofJune1981.IvanW.Smith,EsquireChairmanAtomicSafetyandLicensing BoardU.S.NuclearRegulatory Commission Washington, D.C.20555RobertM.Lazo,EsquireAtomicSafetyandLicensing BoardU.S.NuclearRegulatory Commission Washington, D.C.-20555MichaelA.Duggan,EsquireCollegeofBusiness, Administration University ofTexasAustin,Texas78712Docketing andServiceStationOfficeoftheSecretary U.S.NuclearRegulatory Commission Washington, D.C.20555JeromeSaltzman, ChiefAntitrust

&Indemnity GroupU.S.NuclearRegulatory Commission Washington, D.C.20555AtomicSafetyandLicensing BoardU.S.NuclearRegulatory Commission Washington, D.C.20555RichardS.Salzman,EsquireAtomicSafetyandLicensing AppealBoardPanelU.S.NuclearRegulatory Commission Washington, D.C.20555JosephRutberg,EsquireLeeScottDewey,EsquireFredricD.Chanania, EsquireCounselforNRCStaffU.S.NuclearRegulatory Commission Washington, D.C.20555AnnP.Hodgdon,EsquireOfficeoftheExecutive LegalDirectorU.S.NuclearRegulatory Commission Washington, D.C.20555ThomasGurney,Sr.,Esquire203NorthMagnoliaAvenueOrlando,Florida32802RobertE.BathenFredSafferR.W.Beck&Associates P.O.Box6817Orlando,Florida32803 GeorgeSpiegel,EsquireRobertJablon,EsquireDanielGuttman,EsquireSpiegel6McDiarmid 2600VirginiaAvenue,N.W.Washington, D.C.20037WilliamC.Wise,EsquireSuite500120018thStreet,N.W.Washington, D.C.20036WilliamH.Chandler, EsquireChandler,.

O'Neal,Avera,Gray6Stripling Post,OfficeDrawer0Gainesville,,Florida 32602JanetUrban,.EsquireU.S.Department ofJusticeP.O.Box14141Washington, D.C.20044~NormanA.Coll,EsquireSteel,Hector6DavisSoutheast FirstNationalBankBuildingMiami,Florida33131DonaldA.Kaplan,EsquireRobertFabrikant, EsquireAntitrust DivisionU.S.Department ofJusticeWashington, D.C.20530CharlesR.P.Brown,EsquireBrown,PaxtonandWilliams301South6thStreetP.O.Box1418FortPierce,Florida33450GeorgeR.Kucik,EsquireMareGary,EsquireEllenE.Sward,EsquireArent,Fox,Kintner.,

Plotkin&Kahn1815HStreet,N.W.Washington, D.C.20006BenjaminH.Vogler,EsquireU.S.NuclearRegulatory Commission Washington, D.C.20555gG.een-Lowenstein, Newman,Reis6Axelrad1025Connecticut Avenue,N.W.Washington, D.C.20036(202)862-8400 EXHIBITAEXTRACTSFROMPROPOSALFORDADECOUNTY,FL'ORIDAFORRESOURCERECOVERYPLANT PROPOSALFORDADECOUNTY,FLORIDAFORRESOURCERECOVERYPLANTPRO3ECTNY-1390Preparedby,THEBLACKCLAWSON-PARSONS 8(WHITTEMORE ORGANIZATION

.ForResources Recovery(DadeCounty),Inc.~May11,1976OSISIStoe[SIVCI'ROI'ERTY OFTHEPARSONSSWHITTEMORE/I YDDONORGANIZATION.

ANDMUSTS~CO+CDWITHOUTTHEIREXPRESSPERMISSION GIVENINWRITING.

ProjectNo.1390/Dade CountyINDEXTITLEPAGESection1Section2ProposalProcessDescription 1-1thru1-192-1thru2-16Section3Contract-Construction ofthePlant3-1thru3-21Section0~AendixA.List,ofEquipment ITcBuildings B.Specification SheetsContract-Operation ofPlant3-30thru3-0g3-50thru3-2020-1thru0-26Section5Section6Section7Contract-SaleofTurbo-Generator toFloridaPowerITcLighteSaleofPathological Incinerator 6-1thru6-197-1thruT-3ParsonsRWhittemore Guarantee

'-1thru5-2Section8DrawingsSeeNext.PageSLACKCLCLAWSONFIBRECLAIM, INC.~'&OxEVPROPOSAI.

ISTHEEXC~ICi/~XCLUSIVEPROPERTYOF'THEPARSONS&WHITTEMORE/I YOOONORGANIZATION.

ANOMUSTDUCCOOIICOPIEOWTEOWITHOuTTHEIREXPRESSPERMISSION GIVENINWRITING-

~'ProjectNY-1390/Dade CountyINDEX(Continued)

TITLEDrawings(Continued)

IndexPAGEDP-1101DP-1102DP-1103DP-1100DP-1105DP-1106DPF-101DPFI102DPF-103DPF-100DPF-105SiteLocationPlanSitePlanPlantLayoutPlanPlantOffices/Employee Facilities PlantBuildingSectionsPlantExteriorElevations ProcessFlowDiagramPowerComplexFlowsheet forSteamGeneration PowerComplexFlowsheet forPowerGeneration MainElectrical SingleLineDiagramMetalandGlassRecoveryPlantParsonsRVhittemore BrochureSLhCKCLA%'SONFIBRECLAIM, INC.~e~~~Ee&0+OSAI.1$THEX*SONSbWHITTPMORK DESCRIPTION OFPROCESSANDEQUIPMENT ProjectNY-1390/Dade Co.PageNo.2-1A.Performance Summari.~CaacitParsonsRWhittemore Organization proposestoenginee,finance,supply,construct andoperateaSolidWasteResou"ceRecoveryFacilityforResources Recovery{DadeCounty),inc.fortheDadeCountyPublicWorksDepartment inacco.dance withRequestForProposals ForSolidWasteResourceRecoveryFacilityAndManagement 5%'D7-70dated3uly31,1970andBasicDesignAndAcceptance CriteriadatedApril1976.Theplantwillbecapableofdisposing of3000ton.perday,1S,000tonsperweekofresidential andcommercial rubbishandtrash.TheDadeCountyplantwillbedesigneoaccording tothedevelopments oftheBlackClawsonHydrasposal systemandov<<:fiveyearsoperating experience ofthecommercial demonstratiori

• installation atFranklin, Ohio.Thebasicconceptsandcomponents usedasdescribed inororiginalproposaltotheCountydatedNovember11,1970Iremainvirtually unchanged.

Anexception isnon-ferrous metalsrecovery, andintheimprovedseparation andsortingofglass.Outstanding progresshasbeenmadeatFranklininthepastyearintheseareas.TheDadeCountyResourceRecoveryplan.willincludethefollowing commercially provencomponents:

Processing solidwastethroughaHydrapulper, whichincludespulping,grinding, classification andscreening toseparateandrecoverorganicfrominorganic materials.

b.PowerCeRecoveryofenergyvaluesfromsolidwastebyburningtheorganic,combustible fractioninboilerstoproducesteamforthegeneration anddistribution ofelectricity, byFloridaPowerIt.LightCompany.MetalReclamation Separation andrecoveryofferrousandnon-ferrous metalsforsaleandrecycle.SLhcLhCKCLAWSONF}BRECLAIM INC.~~~I~PIOPO~e4OtaSAI.ISTWHITTEMOR

~'IMOSVCCD OIICOPIEDWITHOUTTHEIREXPRESSpCRMISSION GIVENINWRITING F.ElectricPowerGeneration ProjectNY-1390/Dade CountyPageNo.2-12Aturbogenerator module,completewithtransmission facilities, willbeprovidedfortheaccountoftheFloridaPowerdcLightCompany.Two35megawatt, 00Mva,hydrogencooledturbogenerator setswillbeI!rovided.

Theturbineswillbesuppliedwithsteamat600psig,750F.atthethrottle.

Theturbineswillbecondensing, withextraction at178,32and10psigtoprovidelowpressuresteamfortheboiler'oomauxiliaries.

Eachturbinewillhaveawatercooledcondenser.

Eachcondenser willhaveacondensate pump,andathirdstandbycondensate pumpwillbeinstailed.

Electr!city willbegenerated at13,800volts.includedfortheFloridaPowerRLightaccountwillbethenecessary 13.8Kvbusandstructures, 13.8Kvcircuitbreakers, 13.8/200Kvstepuptransformer, andtransmission linetotheFloridaPower2Light200Kvdistribution line.Alsoincludedwillbethenecessary instruments andcontrolpanels.A25tonbridgecranewillalsobeprovided.

I0'atercooledcondensers willbeprovidedfortheturbines, thiswillbeaclosdcircuitsystem.Thecoolingwaterwillbecirculated fromthecondensers tocoolingtowersandbacktothecondensers.

Blowdownfromtheccolingtowerwillbeusedasmake-upwaterintheprocessing partoftheplant.Thecoolingtowerwillbeasixcellmechanical draftcrossflow unit.Three35,000GPMcirculating pumps,whichincludesaspare,willbeprov!Ced.bLhCKCLAWSONFIBRECLAlM INC~$$~SALISTHEEXCLUSIVE PROPERTYOrTHEPARSONSSWHITTEMORE/LYOOON OROANI?ATION.

ANOMUSTloOOOuCCO ORCOPIIREIIPRESSPER EXHIBITBEXTRACTSFROMPURCHASECONTRACTBETWEENMETROPOLITAN DADECOUNTY,FLORIDAANDRESOURCES RECOVERY(DADECOUNTY),INC.

009013076 SLL/gmb3302.04-01-20 PURCHASECONTRACTBetweenMETROPOLITAN DADECOUNTYFLORIDA.andRESOURCES RECOVERYDADECOUNTYINC.DATED:SEP~81976,19v6 PURCHASECONTRACTFORSOLIDNASTEDISPOSALFACILITYTHISAGREEMENT, madeandenteredintoasofthisQ/dayof1976byandbetweenMETROPOLITAN DADECOUNTY,FLORIDA,apolitical subdivision oftheStateofFlorida,actingb>andthroughtheBOARDOFCOUNTYCOMMISSIONERS (the"County"),partyofthefirstpart;andRESOURCES RECOVERY(DADECOUNTY),INC.,aDelawarecorporation (the"Seller"),partyofthesecondpart.WITNESSETH'hat thepartieshereto,fortheconsideration hereinsetforth,mutuallyagreeasfollows:ARTICLEIDefinitions 1.01AccetanceDate.The"Acceptance Date"shallmeanthe',da<<thattheCountyacceptstheFacilityinaccordance with'ection7.'03(a)or7.05(a)(i) hereof,whichever isapplicable.

1.0 2Commencement

Date.The"Commencement Date"shallmeanthedatethattheCountyissuesanoticetoproceedtotheSellerinaccordance withSection11.03hereof.P1,03ComletionDate.The"Completion Date"shallmeanthatdatewhentheFacilityandLandfillAreahavebeenconstructed inaccordance withthespecifications attachedheretoasAppendices "A","B","C"and"D"allstructures, equipment andmaterials areinplaceandallsiteandotherimprovements havebeenmade;andtheLandfillAreahasbeenapprovedforoperation bytheFloridaDepartment ofEnvironmental Regulation.

TheCompletion DateshallbedeemedtohavebeenreachedwhentheSellercertifies, andtheIndependent Engineerrecommends, totheCountythattheFacilityandLandfillAreaarecompletein'heafore-described manner;provided, however,thatintQeeventthattheSellercertifies onthe"Completion Date"andtheIndependent Engineerdoesnotrecom-~endtotheCountythattheafore-described conditions havebeen~<<,theIndependent Engineershallspecifyinreasonable detail<"ereasonsthattheFacilityandLandfillAreaarenotcompletei~<heabove-described mannerwithinfifteen(15)daysafterthe>>~ependent Engineerhasreceivedwritten'noticeofcertification bytheSellerortheIndependent Engineershallbedeemedtohave~a<<suchrecommendation.

2 10'D'C'."D'gCP'y" 111hcapacitytoProcess18,000TonsofSolidNasteperweekinaccor-dancewiththeAcceptance CriteriaattachedheretoasAppendixIIEII1.05Electrical Generation Facilit.The"Electrical Genera-tionFacility" shallmeantheturbo-generator andthefacilities relatingtheretotobeownedbyFloridaPowerandLightandtobebuiltpursuanttoanagreement tobeenteredintowithFloridaPower5LightCompanyasprovidedinSection11.02hereofandasnoreparticularly described insuchagreement.

1.06~Facilit.The"Facility" shallmeanthestructures, equipment andimprovements formingpartoftheinstallation tobelocatedontheSite,designedtobecapableofprocessing 18,000eTonsofSolidNasteperweekandreclaiming andrecycling materi-alsincludedthereinandburningthecombustible portionthereoffortheproduction ofsteam,including aPathological Wasteinciner-a<<rdesignedtobecapableofdisposing two(2)tonsofPatho-logicalWasteperday,butexcluding the.Electrical Generation

>>cility.TheFacilityismoreparticularly described inthesP<cifications'attached heretoasAppendices "A","B"and"C".3 1,07HdrasosalProcess.The"Hydrasposal Process"shallmealawetshredding technology thatreducesthevolumeofSolidpastebyseparating itintocombustible andnoncombustible compo-gentsandafterreclamation ofthenoncombustible portionthereof,theremaining materialisintheformoffuelwhichiscapableofbeingburnedautogenously.

1.08IndeendentEnineer.The"Independent Engineer" shallmeanaFloridaRegistered Professional

Engineer, unaffiliated withtheCounty,whoisselectedbytheCountyandapprovedbytheSeller.TheCountyshallsubmittotheSelleralistofFloridaRegistered Professional Engineers fromwhichtheCountyhasre-ceivedproposals inaccordance withDadeCountyOrdinance 76-42,andtheSellershallhavetendaystonotifytheCountyoftheengineers, ifany,ofwhichSheSellerdoesnotapprove.There-a~ter,iftheCountyselectsanengineerfromsuchlist(otherthanthoseengineers ofwhichtheSellerhasnotifiedtheCountyitdoesnotapprove),

theSellershallbedeemedtohaveapproved<<suchengineer.

IntheeventthattheIndependent Engineerresignsorbecomesincapable ofundertaking his.duties,theCountys>>11selectthesuccessor Independent Engineerwiththeapproval<<theSellerintheafore-described manner.4 1.09Landfill.

"Landfill" or"Landfilling" shallmeantodisposeofSolidWasteormaterials whichcannotbereclaimed from,orresidueremaining aftertheProcessing of,SolidWasteonlandinasanitarymannerbygradingandcoveringinconformity hdh717.7fhR1fhfld~Df3'~R1*'dhP4434hPld3andany.otherrulesandregulations thereunder andanyandallsimilarorsuccessor

statutes, ordinances, rulesandregulations pfanypublicbodyhavingjurisdiction thereofapplicable tothedisposalofwaste.1.10LandfillArea.The"Landfill Area"shallmeantheareawithintheSitedesignated forLandfillpurposesassetforthinSectionC.3ofAppendix"C"attachedheretotobeconstrued inaccordance withspecifications includedinAppendix"D"attachedhereto.1.11ManaementContract.

The"Management Contract" shallmeantheagreement betweenthesamepartiesheretoofevendate,PUrsuanttowhichtheCountyretai'ned theSellertomanageandoperatetheFacilityandLandfillArea.1.12PatholoicalWaste."Pathological Waste"shallmeanhU~anandanimalparts,animalcarcasses of125poundsorless,5 pathological specimens andcontaminated

bandages, clothingandimplements resulting fromtheoperation ofhospitals ormedicalclinics.1.13Process."Process" or"Processing" shallmeantopro-cessanddisposeof,or'theprocessing anddisposalof,Solid4'astebytheHydrasposal Processandtheproduction ofsteambyburningtheautogeneous fuelcreatedthereby.1.14Sj.te.The"Site"shallmeansuchrealpropertyasisleasedtotheSellergytheCountyinaccordance withSection3.01hereofandaleaseintheformofExhibit"C"attachedheretoandasparticularly described therein.1.15SolidNaste."SolidWaste"shallmeanallformsoftgarbage,gardentrash,commercial waste,noncombustible refuse,rubbish,waste,bulkywaste(including whitegoods,furniture, andotherlargerubbishitems),bundledgardentrashandcontainerized h'asteandminoramountsofPathological Naste(totheextentthattheyarecontained inthenormalSolidNastestream);aseachof

saidtermsisdefinedinDade~CountCodeSection15-1oranysuc-cessorlawordinance, ruleorregulation, butexcludeshazardous jndustrial wastes,'i'quidwaste,Pathological Naste,sewage,junkautomobiles andbulkshipments ofmanure.1.16Ton."Ton"shallmeanoneshorttonof2,000pounds.7 I

ARTICLEVOwnershiofFaciliti.Illo~h'0h'pfhP'1'dh'ghuse,orlicense'theuseof,allpatents,process,tradesecretsknow-howandotherproprietary information requiredfortheOperation oftheFacilityandLandfillArea,andallimprovements c:everykindanddescription installed bytheSellerontheSite,shallbetheCounty'spropertyuponpassageoftitleinaccordance

~.'thSection5.02hereof.S.D2Title.TitletotheFacilityandLandfillAreashallpasstotheCountyfreeandclearofallliens,attachments, charges,orotherencumbrances howsoever

incurred, uponpaymentoftheContractPriceor60:oftheContractPrice,whichever firsteicUrs,asprovidedinSection3.09(a)and3.09(d)hereof.The,.Sellerwaives(andanysubcontractor orsub-subcontractor shallen<<rintoanagreement withtheSellertowaive)anyrights:>>ssertanyliensagainsttheFacility, theLandfillAreaorthe'<<foranyreasonwhatsoever andtheSellershalldischarge anyliens,a:<achments, charges,orotherencumbrances arisingoutofthe~>>s<t'uction orotheroperations oftheSelleragainstthe.Facility, 30

.;~gandfillAreaortheSiteandfurthershalldischarge ofop(bybondorotherwise, anylien,attachment, charge,or-.gypencumbrance whichmaybefiledagainsttheFacilityor,;)fillAreaorSitebyanycontractor, subcontractor, materialman p.O<herpersonderivinghisclaimfromtheSellerwithinthirty:")daysaftersuchfiling,exceptalienimposedbyconstruction

.qqderspursuanttofinancing obtainedinaccordance withSection'::,plhereof,whichshal'1besatisfied anddischarged atorpriort:thedatethattitlepassestotheCountypursuanttothis$::tion5.02.TheSellerindemnifies andagreestoholdthe{;:.styharmlessfromanyandalljudgments, expensesorcosts,.-.:luding attorneys'ees (including feesincurredinprosecuting

-.defending anyappellate proceeding) incurredbytheCountyasa.suitofanysuchlienorencumbrance.

I5;03RiskofLoss.TheSellershallretainallriskofloss=rtheFacility, theLandfillAreaandtheSitefor'amages of!'atureuntilacceptance bytheCountyoftheFacilityonthe'=~prance Dateinaccordance withSection7.03(a)or7.05(a)(i)~:<<~,whichever isapplicable.

Afteranylossordamagetothe">>sty,LandfillAreaortheSiteforwhichtheSellershall"'<<heriskoflossordamage,theSellershallwithduedili-31 glanceanddispatch, beresponsible forreplacement oflostorgarageditemsatitsownexpense.Thisprovision shallnotbegppstrued topreventtheSellerfromrecovering theproceedsofanyapplicable insurance coveringsuchlossordamage.32 EXHIBITCRESTATEDANDAMENDEDAGREEMENT FORASSUMPTION OFRIGHTSANDOBLIGATIONS UNDERELECTRICAL GENERATION FACILITYANDSTEAMDELIVERYAGREEMENT

~~RESTATEDANDAMENDEDAGREEMENT FORASSUMPTION OFRIGHTSANDOBLIGATIONS UNDERELECTRICAL GENERATION FACILITYANDSTEAMDELIVERYAGREEMENT THISAGREEMENT, madeandenteredintoasofthis5thdayofMay,1978,byandbetweenMETROPOLITAN DADECOUNTY,FLORIDA,apolitical subdivision oftheStateofFlorida,actingbyandthroughtheBoardofCountyCommissioners (theI"Countv"),

partyofthefirstpart,andRESOURCES RECOVERY(DADECOUNTY),INC.,aDelawarecorporation

("Contractor"

),partyofthesecondpart.WITNESSETH WHEREAS,theCountyhasundertaken thedevelopment andoperation ofsolidwasteresourcerecoveryfacilities fortheprocessing ofsolidwasteandtherecoveryandutiliza-Itionofmaterials createdthereby;and WHEREASthCountyhasenteredzntoacontractwithdurchaseoftheContractor orfthedesign,construction anpthe"SWPFPurchaseCon-asolidwasteprocessing facxlxty(etract").andanoterconrac.hontractwiththeContractor fortheoperation anmaindaintenance ofsuchfacil'it{the"SWPFHan-whichfacilityistobedesignedandagementContract"

),wxcconstrueetdtoreclaimandprocessthesolidwastesoastoandtoproduceheatedsteamthroughprepareautogenous fuelanofel(the"SolidWasteProcessing thecombustion ofthisueFacility" orthe"SWPF");anducedbtheSolidWasteWHEREAS,theheatedsteamproduceyusedinanelectrical genera-Processing Facilityistobeusetionfacility{the"EGF"the"EGFFacility" orthe"Elec-hichistobedesignedandtricalGeneration Facility)whichsolidwasteresourcerecovery-constructed aspartoftesoifacilities; andeElectrical Generation WHEREAS,theconstruction oftheEleenaementbytheCountyFacilityisanecessary partoftheenggionoftheSolidWaste<<theContractor fortheconstruction otheSWPFPurchaseContract; Processing Facilitypursuanttotheand WHEREAS,thesaleofsteamfromtheSolidWasteProcess-ingFacilitytotheoperatoroftheElectrical Generation Facilityisanecessary partoftheengagement bytheCountyof,theContractor fortheoperation oftheSolidWastePro-~cessingFacilitypursuanttotheSWPFManagement Contract; andWHEREAS,itisthedesireofthepartiesthattheElectrical Generation FacilitybeownedbyFloridaPowerLightCompany,apublicutilitycompanylocatedinFlorida("FPL"),andthatthesteamproducedbytheSolidWasteProcessing Facilitybepurchased byFPLforuseintheElectrical Generation FacilitywhichistobeoperatedbyFPLtogenerateelectricity fortheFPLsystem,whichservesthe,residents ofDadeCounty,Florida;andWHEREAS,thepartieshaverequested FPLtoenterintoacontractforthepurchaseof,theElectrical Generation FacilityandthesteamproducedbytheSolidWasteProcess-ingFacility, andFPLhasrequested thatthecontractbewiththeCountyandnotwiththe~Contractor asdirectparty;andWHEREAS,asaresultofFPL'srequest,theCountyhasenteredintoacontract, datedasofOctober18,1977<

withFPLfortheconstruction oftheElectrical Generation Facility'andthesaleofsteamproducedbytheSolidWasteProcessing Facility(the"EGFContract"

)andhas,asaresultthereof,agreedtocertainobligations undersuchcontract, someofwhichwill,infact,beperformed bytheContractor andnottheCounty;andWHEREAS,theCountywishestheContractor toassumecertainresponsibilities oftheCountyundertheEGFCon-tractandtoreceivepaymentsduetheCountywithrespecttothesaleofsteamtoFPL;andWHEREAS,thhCountyandtheContractor executedasofHarch22,1978,anAgreement forAssumption ofRightsandObligations under'Electrical Generation FacilityandSteamPurchaseAgreement

{the"Original Assumption Agreement"

)whichAgreement wasintendedtoaccomplish theabovepur-poses;andWHEREAS,PARSONS&WHITTEMORE, INCORPORATED, aNewYorkcorporation

{"Guarantor"

),hasexecutedaGuaranty{the"Assumption Guaranty"

),datedasofNaich22,1978,,infavor<<theCountyguaranteeing performance oftheobligations

<<theContractor anditspermitted assignsundertheOri-ginalAssumption Agreement, acopyofwhichGuarantyisat-tachedheretoasExhibitA;and WHEREAS,Guarantor hasratifiedandconfirmed thecon-tinuingvalidityoftheAssumption Guarantybyexecution ofaRatification ofContinuing Guaranty(the"Assumption GuarantyRatification"

)ofevendatehereof,saidguaranty,instrument beingexecutedinfavoroftheCounty,acopyofwhichinstrument isattachedheretoasExhibitB;andWHEREAS,thepartiesdesiretoclarifyandotherwise modifythetermsoftheOriginalAssumption Agreement throughreplacement ofallofitstermsandconditions bythoseofthisAgreement; NOW',THEREFORE, inconsideration oftheabove-recited premisesandthefollowing

promises, itisagreedasfol-lows1.Definitions.

TermsusedhereinanddefinedintheEGFContractshallhavethesamemeaningshereinunlessthisAgreement provides.

otherwise.

2.Construction oftheFacilit(a)theContractor shalldesign,finance(duringconstruction) andconstruct

'theElectrical Generation

Facility, asprovidedintheEGFContractinaccordance with,Sections5.1through5.10,Section5.16,Sections8.1through8;3,Section9.1,Section10.0,Section11.0,Section12.0,Section14.0,Section17.0,Section18.0and Section22.0~(provided thattheindemnification contained inSection22.2shallrelatesolelytothehiringpractices oftheContractor anditssubcontractors),

oftheEGFContract.

TheContractor shallalsotransfertitletotheEGFTrans-,missionFacilities andtheFacilitytotheCountyortoFPL,asdirectedinwritingbytheCounty,inaccordance withSections7.0and19.2oftheEGFContract.

(b)Notwithstanding anythingtothecontraryherein,theContractor shallnotberequiredtomakeanychanges,asprovidedinSections5.2.1.5or17.0oftheEGFlContract, unlesstheContractor agreesinwriting(i)toallchangespriortoincorporating thechangeintotheHork,and(ii)tothechangeinprice,ifany,resulting fromanysuchchange.Anyincreaseinthepurchasepriceresulting fromanysuchchangeshallbepaidto,theContractor uponmutuallyagreeable terms.3~SaleofEGFandSteam.Afterconstruction oftheElectrical Generation

Facility, theCountyisobligatedundertheEGFContracttoselltheElectrical Generation Faci>>tytoFPLandtodeliverandsellQualitySteamtoFPLinaccordance withSections5.12,5.13and5~14oftheEGFC>>tract,including, butnotlimited'o, obligations tomakepaymentstoFPLinaccordance withSection5.19.oftheEGF Contractandtoberesponsible fordamagesresulting fromthefaultyoperations oftheSWPFandnonquality steŽaccordance withSections8.4and5.15oftheEGFContract, andtheContractor shallassumealloftheCounty'sobliga-tionsundersuchsections, asiftheContractor wereapartytotheEGFContractinlieuoftheCounty.4.Pament,ofRebates.TheContractor herebyuncon-ditionally assumes,andshallbeprimarily liabletoFPLfor,theCounty'sobligation topaytoFPLanyandallpay-mentspursuanttoSection5.19oftheEGF'Contract, andtherelatedSectionAh3.2ofAppendix"A"thereof,andtheCon-tractorshallmakeallpaymentsrequiredtobemadepursuanttothetermsoftheEGFContractbytheCountytoFPLdirectlytoFPLifrequested todosobytheCounty;other-wise,suchpaymentswillbemadetotheCountybytheCon-tract'or.

TheContractor furtheragreestopaytheCountyanyamountofthemonthlyPurchasePrice(ascalculated inSectionA.2.1(a)oftheEGFContract) notpaidtotheCountybyFPL.Provided, That,theContractor shallberelievedofsuchobligations uponamaterialbreachoftheEGFContractbyFPLorby'heCounty,oruponamaterialbreachofthisAgreement bytheCounty.

providedfurther,ThatwheresuchamountnotpaidtotheCountybyFPLresultsfrom,anadjustment tothemonthlypurchasepriceasprovidedinSectionA.3.1.ofAppendixAtotheEGFContractduetoinsufficientsteamdeliverybytheContractor, theContractor shallberelievedofsuchobligations totheextentthatsuchinsufficient steamdeliveryiscausedbythefailureoftheCountytodelivertherequiredquantitites ofSolidWastetotheSHPFinaccordance withtheSWPFManagement Contract.

5.AllOtherObliationsandLiabilities.

Exceptasotherwise providedinthisAgreement,theContractor unconditionally,assumes allresponsibi1ityfortheperformance bytheCountyofitsobligations undertheEGFContractandforallliabilities oftheCountyarisingoutoftheBGFContractprovidedhoweverthattheContractor shallnotassumetheobligations ortheliabilities oftheCounty.providedforinSections5.11,5.17,5.18,6.2,9~2.2p9.2.3and15.5oftheEGFContract, norwilltheContractor receivetherighttoreceivepaymentsfortheEGFasprovidedinSection6.1oftheEGFContract.

6.Performance ofObliations.(a)Obligations oftheCountyundertheEGFCon-tractassumedbytheContractor hereunder shallbeper-formedinaccordance with,andsubjectto,theprovisions ofSection9~2.1(releasebyFPL),Section13.0(limitation ofliability),

Section16~0(forcemajeure),

Section17.3,3(extension oftime),Section20.1(nonexclusive remedy)gSection24.0(non-waiver),

Section25.0(arbitration) andSection28.0(governing law).(b)Inaddition, theContractor's performance underthisAgreement issubjecttothefullperformance byFPLofeachofitsobligations undertheEGFContract, including, butnotlimitedto,subsections 6.3through6.9,laswellasthefullperformance bytheCountyofeachofitsobligations underthisAgreement, theEGFContract(exceptasassumedbytheContractor hereunder),

theSWPFPurchaseContractandtheSNPFManagement Contract.

Providedthat,theconditions providedinthisParagraph 6(b)arelimitedtosituations excusingtheContractor fromperformance forsuchperiodsoftimeasthenon-performance byeithertheCountyorbyFPLrendersitimpractical fortheContractor totimelyperformhereunder.

7.PamentforEGF~TheCountyshallpaytheCon-tractorthefullPurchasePriceofTWELVENILLIONSEVENHUNDREDFORTY-TWO THOUSANDTHREEHUNDREDEIGHTY-ONE ANDNPilPPDOLLARS($12,742,381.00) asadjustedinaccordance withSectionA.l,Appendix"A"totheEGFContra~tandSection2{b)hereof,withinfive(5)businessdaysaftertheoccurrence ofallofthefollowing:

(a)TheCountyacceptstQeSWPFinaccordance withSection7.03(a),oftheSWPFPurchaseContractortheSWPFisdeemedtohavereachedatleast'08ofDesign,Capacityinaccordance withSection7.03(b)oftheSWPFPurchaseContract;

{b)FPLacceptsorisobligated toaccepttheEGFinaccordance withSection11.0oftheEGFContract; and(c)TheEGFfunctions asan'integral partoftheSWPFwithoutusingsupplemental fuel.Thefinancing, asdescribed inExhibitChereto,toenabletheCountytopaythePurchasePriceinaccordance

herewith, shallbearrangedbytheContractor onbehalfoftheCounty.10 8.AssinmentofRihttoReceivePamentforSteam.TheCountyherebyassignstotheContractor (a)itsrighttoreceivepaymentfromFPLforthepurchaseofsteampursuanttoSections6~6and6.7oftheEGFContractandSectionsA.2.2andA.3.2ofAppendix"A"totheEGFContract; and(b)ftherighttoreceiverecoverypaymentsinaccordance withSectionA.4ofAppendix"A"oftheEGFContract;

provided, however,thatallpayments'ue theContractor pursuanttoSection6.6oftheEGFContractshallbesubjecttooffsetforallamountsduetheCountyorFPLpursuanttotheEGFContractwhicharetheobligation oftheContractor.

f.~.fillf,*'fyIandholdharmlesstheCountyfromallliabilities arisingoutofitsperformance underthisAgreement, andshalldefend,indemnify andholdharmlesstheCounty,itsinde-pendentengineers, theiragents,servantsandemployees fromalldamagesorclaims,costsandexpenses, including at-ytorneys'ees (including attorneys'ees incurredinanyappellate proceeding),

occasioned by,orcausedto,anyPersonorpropertybytheperformance ofthisAgreement, exceptforinjuriesanddamagescausedbythenegligence of<heCounty,itsindependent engineers, oitheiragentsgservantsoremployees.

Theindemnity providedforinthis Section9isinconsideration fortheallocation bytheCountytotheContractor ofTWOMILLIONDOLLARS(q2,000,000.

00)outoftheTWELVEMILLIONSEVENHUNDREDFORTY-TWO THOUSANDTHREEHUNDREDEIGHTY-ONE ANDNO/100'OLLARS($12,742,381.00)EGFPurchasePriceasadjustedundertheEGFContract, whichpurchasepricerepresents thetotalconsideration totheContractor underthisAgreement; however,theamount-ofsuchpaymentshallinnowaylimittheliability oftheContractor pursuanttoallthein-demnifications providedforinthisAgreement andthepartiesherebyacknowledge theadequacyofsuchconsidera-tion.10.DefaultandTermination.

(a)ThisAgreement maybeterminated bytheCounty:(1)Upontermination of:(A)theEGFContract; or(8)theSWPFPurchaseContract; or(C)theSWPFManagement ContractaftertheSolidWasteProcessing Facilityisacceptedinaccordance withtheprovi-sionsoftheSWPFPurchaseContract; or12 I

(2)UponamaterialbreachofthisAgreement bytheContractor

.proyided, That,theCountymayterminate thisAgreement undersubparagraphs 10{a){1)and10(a)(2)aboveonlyuponthirty(30)dayspriorwrittennoticetotheContractor.

ThisAgreement willterminate attheendofsaidthirty(30)dayperiod,unless(i)theContractor curesthedefaultwithinsuchperiod,or(ii)ifmorethanthirty(30)daysisrequiredtocorrectthedefault,iftheContractor hascommenced andproceedsdiligently tomakesuchcorrections; (3)Xntheeventofavoluntary orin-tvoluntary receivership, bankruptcy orinsolvency oftheContractor, uponfive(5)dayspriorwrittennoticetotheContractor.

(b)ThisAgreemen't maybeterminated bytheContractor:

(1)UponamaterialbreachoftheEGFCon-tractbyFPL,whichbreachresultsinthetermination oftheEGFContract(theContractor havingtherighttoIrequiretheCountyuponfive(5)dayswrittennoticetoterminate theEGFContractupontheoccurrence ofsuchbreachbyFPLanduponsaidnoticetheCountyshallsoterminate theEGFContract);

or13 (2)Upontheoccurrence ofanycausestipu-latedinSection15.3oftheEGFContract(otherthanabreachorfailureto,perform underthisAgreement byContractor) whichcauseresultsinthetermination oftheEGFContract(theContractor havingtherighttorequiretheCountyuponfive(5)dayswrittennoticetoterminate theEGFContractonanysuchoccurrence anduponsaidnoticetheCountyshallsoterminate theEGFContract);

or(3)UponamaterialbreachbytheCountyofthisAgreement, orabreachbytheCountyoftheEGFContractwhichbreachresultsinthetermination oftheIEGFContract; or(4)(i)Upontermination oftheSWPFPur-chaseContractandtheSNPFManagement Contractpriortoacceptance oftheSWPFinaccordance withthetermsoftheSWPFPurchaseContract; or(ii)upontermination oftheSWPFManagement Contract.

Provided, That,theContractor mayterminate thisAgreement undersubparagraphs 10(a)(1)and10(a)(2)aboveonlyuponthirty(30)dayspriorwrittennoticetotheCounty.ThisAgreement willterminate at,theendof-saidthirty(30)dayPeriod<unless(i)theCountycuresthedefaultwithinsuchJ14 periodor(ii)ifmorethanthirty(30)daysisrequiredtocorrectthedefault,iftheCountyhascommenced andproceedsdiligently tomakesuchcorrections; or(c)IftheEGFContractisterminated inaccord-ancewithSection15.3oftheEGFContract, theContractor shallassumetheCounty'sobligations tofullyreimburse FPLforallcostsincurredbyFPLintheprojectinaccordance withSections15.4and15.6oftheEGFContract, providedthattheContractor shallnotassumes'uchobligation (1)iftheEGFContractisterminated asaresultofabreachthereofbyFPL;(2)following abreachbytheCountyofthisAgreement (whichbreachresultedinthetermination oftheEGFContract);

or(3)iftheCommencement Datedoesnotoccurwithintwenty-four (24)monthsaftertheeffective dateoftheEGFContractforanyreasonnotcausedbytheContractor.

11.Term.(a)ThetermofthisAgreement shallbeforaperiodoftimefromtheeffective dateofthisAgreement untiltwenty(20)yearsfromtheAcceptance Date,unlessthisAgreement isextendedinaccordance withsubparagraph (b)hereoforsoonerterminated inaccordance withSection10above.

(b)ThetermofthisAgreement canbeextendedbythemutualagreement betweentheparties.12.Reresentations.

TheCountyrepresents andwar-rantstotheContractor thattheexecution anddeliveryofthisAgreement hasbeendulyauthorized byallappropriate actionsofitsgoverning body,andthisAgreement consti-tutesthelegal,validandbindingobligation oftheCountyenforceable inaccordance withitsterms.TheContractor represents andwarrantstotheCountythattheexecution anddeliveryofthisAgreement, andtheexecution anddeliveryoftheguarantyofperformance ofthisAgreement bytheGuarantor havebeendulyauthorized byallnecessary corporate actionofeachcorporation andtheAgreement andguarantyconstitute legalandbindingobligations ofeachcorporation inaccordance withtheirrespective terms.13.SecificPerformance orPerformance btheCountThepartiesal'soacknowledge thatmoneydamagesmaynotbeadequateintheeventofabreachofthisAgree-mentduetothespecialnatureoftheSolidWasteProcessing IFacilityandthetechnology requiredtoconstruct theSolidWasteProcessing

Facility, andtheCountyshallhavetherig"tiatitsoption,tobringanactionforspecificper-for>>nceintheeventthattheContractor failstoperform>tsobligations underthisAgreement.

16 Inthealternative, intheeventthattheCountyterminates thisAgreement inaccordance withthetermshereoftheCountymayelect,uponnoticetotheContractor gtoenterthesiteandcompleteconstruction oftheEGFwithitsownpersonnel oragents.Insuchevent,theContractor shallturnovertotheCountyoritsagentsallproprietary information necessary forcompleting theElectrical Genera-tionFacility, allmachinery, equipment andmaterials purchased fororinstalled intheEGFandshallassigntotheCountyrightstouseallpatents,processes, tradesecretsandknow-howrequiredforconstruction andoperation oftheEGFandanycontracts, purchases orsubcontracts madebytheContractor.-

fortheconstruction of,theEGF.TheCountyshallpay'heContractor anamountequaltothecostsoftheContractor expendedtothedateofnotice,subjecttooffsetbyanyactualdamagesincurredbytheCountyasaresultofnonperformance bytheContractor.

IfFPLexer-cises"its rightsundergl5.5oftheEGFContractpriortoacceptance oftheEGFinaccordance withthetermsthereof,anymoniespaidbyFPLtotheCountyshallbepaidtotheContractor.

TherightsprovidedtheCountybythisSection13shallnotbeinlieuofanyotherrightsandremediesthatth<<ountymayhave,including moneydamages.14Performance btheContractor.

Inthe.eventof>>Ydisputearisingovertheprovisions ofthisAgreement, 17 theContractor shallproceedwiththetimelyperformance ofitsobligations hereunder duringthependencyofanylegalprothersimilar.proceedings toresolvesuchdispute.1.~h'h11bbyandconstrued inaccordance withthelawsoftheStateofFlorida.SubjecttoSection16hereof,theContractor byexecution ofthisAgreement, andParsons&Nhittemore, Incorporated, byexecution oftheguarantyofperformance ofthisAgreement, agreetosubmittoserviceofprocessandjurisdiction oftheStateofFloridaforanycontroversy orclaimarisingoutoforrelatingtothisAgreement orsuckguaranty, oriftheFederalcourtsshallhavejurisdiction thereof,tothe,jurisdiction oftheFederalSouthernDistrictCourtofFlorida.16.Arbitration.

Anycontroversy orclaimarisingoutoforrelatingtothisAgreement, orbreachhereof,shallbesettledbyarbitration inaccordance withthesameproce-dures;.set forthinSection25oftheEGFContract.

17.Amendments.

Theobligations ofthepartiesmaybemodifiedoradditional undertakings maybeagreedupononlybywritteninstruments signedbytheparties,andintheeventthatitisnecessary ordesirable to.amendtheEGFContract, thepartiesheretoshallactreasonably andingoodfaithwithrespecttoanyamendment(s) ofthisAgree-mentnecessary to.reflecttheproposedamendment totheEGFContract.

18.AreementBindin.ThisAgreement shallbebind-inguponthesuccessors andassignsofthepartieswhenassignedinaccordance withSection20below.19.Reresentatives.

Theauthorized representatives oftheCountyforpurposesofdesignating representatives andgivingnoticesandforotherpurposesunderthisAgree-mentshallbetheCountyManager.Theauthorized represen-tativeoftheContractor forpurposesofthisAgreement shallbeMr.PeterAlevra,c/oParsons6Nhittemore, In-corporated, 200ParkAvenue,NewYork,NewYork10017.Eitherpartymaychangeitsrepresentative uponfive(5)dayswrittennoticetotheotherparty.(a)TheContractor mayfreelyassignbywritteninstrument (acopyofwhichinstruments shallbeprovidedtotheCounty)allorpartofitsri'ghtsandobligations underthisAgreement toasubsidiary oranaffiliated companywhich-is,"directly orindirectly, majorityownedbytheCon-tractorortheGuarantor.

Provided, That,saidassigneeshallexpressly assumesuchrightsandobligations oftheContractor relatingtothatPortionofthisAgreement whichisbeingassigned; PProvidedfurther,'hat suchassignment shallnotaffecttheobligations oftheGuarantor underthis'greement, the19 Assumption

Guaranty, ortheAssumption GuarantyRatification andnootherassignment, exceptanyassignments ofanypro-ceedsduetheContractor hereunder, maybemadebytheCon-tractorwithouttheCounty'sconsent.(b)ThisAgreement maynotbeassignedbytheCountywithouttheContractor's consent.21.Conditions Precedent.

Theobligations oftheContractor hereunder areconditioned uponitbeingabletoobtainconstruction financing sufficient toenableittoperformitsobligations hereunder, whichfinancing shallbeacceptable toitandnotinconflictwiththetermsofanyotheragreement towhichitissubject.ITheobligations oftheContractor hereunder shallcommenceupontheCommencement Date,andarefurthersubjecttosuchobligations notbeinginconflictwithoraviola-tionofanyagreement towhichitissubject.22.Notices.Allnoticesandconsentsrequiredorcontemplated bythisAgreement shallbeinwritingandshallbedeemedgivenbyapartywhenmailed,viaregistered mail,<irstclass,postageprepaid,'addressed asfollows:IftotheCounty:TheCountyManagerDadeCountyCourthouse Miami,Florida33130.(withacopytotheCountyAttorneYatthesameaddress)20 IftotheContractor:

=President Resources Recovery(DadeCounty),Inc.c/oParsons&Whittemore, Incorporated 200ParkAvenueNewYork,NewYork10017(withacopytoitscounselatthesameaddress)Changesintherespective addresses towhichsuchnoticesmaybedirectedmaybemadefromtimetotimebyeitherparty.~b'I'.h1yptypofanyprovision) withinthisAgreement beheldun'consti-tutionalorotherwise nullandvoidbyatribunalofcom-petentjurisdiction,

<saidprovision orpartthereofshallbeseveredfromthisAgreement andtheremainder ofthisAgree-mentshallcontinuetobeinfull.forceandeffect.24.Non-Waiver.

Anywaiver,whetherinwritingorbyfailureofthewaivingpartytotimelyact,ofanyrequire-ment-herein orofanybreachofanyrequirement herein:(a)shallnotconstitute awaiverofanysub-sequentrequirement hereinorofanysubsequent breachofanyrequirement herein,and21 (b)shallnototherwise affecttherightsoftheJwaivingpartyunderthisAgreement withrespecttoanysaidsubsequent requirement orsubsequent breachofsaidrequirement.

25.RelacementofOriinalAssumtionAreement.ThisAgreement setsforththeentireagreement betweenthepartiesheretowithrespecttotheassumption bytheContractor ofcertainrightsandobligations oftheCountyundertheEGFContract, andannuls,replacesandspecificallysupersedes alltermsandconditions oftheOriginalAssumption Agreement.

I26.~Finalit.ThiswrittenAgreement isintendedasthefinal,complete, andexclusive statement ofthetermsoftheagreement betweentheparties.ThepartiesagreethatParolorextrinsic evidencemaynotbeusedtovaryorcontradict theexpresstermsofthisAgreement andthatrecoursemaynotbehadtoallegedpriordealings, usageoftrade>courseofdealing,orcourseofperformance toex-Plainorsupplement theexpresstermsofthisAgreement.

INWITNESSWHEREOF,thesaidMetropolitan DadeCounty<FloridahascausedthisAgreement tobeexecutedinitsname22 bytheCountyManager,attestedbytheClerkoftheBoardQfCountyCommissioners, andhascausedthesealofsaidBoardOfCountyCommissioners tobeattachedhereto;andthesaidpartyofthesecondpartyhascausedthisAgreement tobeexecutedinitsnamebyitsExecutive Uice-President, at-testedbyitsSecretary andhascausedthesealofsaidcorporation tobeheretoattached<

allonthedayandyearfirstabovewritten.rMETROPOLITAN DADECOUNTY'LORIDA BYITSBOARDOFCOUNTYCOMMISSIONERS BY:(CORPORATE SEAL)CountyManagerAttest:RICHARDP.BRINKERerofthardBYDeputyClerkCO.tiit<'r.~Q(PartyoftheFirstPart)23

Witnessed:

RESOURCES RECOVERY{DADECOUNTY),INC.~~.=.,J~.r~~'r'('z<(CORPORATE SEAT,)BY~..~~~~.c.r.Me-President (PartiesoftheSecondPart)Guarantor, althoughnotapartytothisAgreement, herebyagreestoandacceptsthetermsandconditions statedinthisAgreement.

ACCEPTEDANDAGREEDTO:PARSONS&WHITTEMORE, IN-CORPORATED Witnessed:

.i!,~~P'~~g&7.<r...>~/,g/f'~B~I,p>e~~(CORPO/cE('gEsTESEAL)

EXHIBITA796-77GUARANTY$~Ed(THISGUARANTY, madeasofthe~dayof~wary,1978,byPARSONS&WHITTEMORE, INCORPORATED, aNewYorkrorationwhosemailingaddressis200ParkAvenue,Ne~York,NewYork10017(hereinafter calledthe"Guarantor"

),toandforthebenefitofMetropolitan DadeCounty,Florida,apolitical subdivision oftheStateofFlorida,actingbyandthroughtheBoardofCountyCommissioners (hereinaf."~er calledthe"County")'.WITNESSETHWHEREAS,Resources Recovery(DadeCounty),Inc.aDelawarecorporation (hereinafter calledthe"Contractor"

),awho11y-owned subsidiary oftheGuarantor, isdesirousofenteringintoan.agreement withtheCountypursuanttowhichtheContractor willassumecertainrights,and obligations oftheCountyunderanElectrical Generation FacilityandSteamPur-chaseAgreement betweentheCountyandFloridaPower&LightCompany("FPL")(the"EGFContract"

),acopyofwhichiscon-currently herewithbeingsubmitted totheCounty(hereinafter calledthe"Assumption Agreement"

);andWHEREAS,TheCountyisnotwillingtoenterintoth<<>>umption Agreement withtheContractor unlesstheCon-t>>cto".'s obligations thereunder areunconditionally guaranteed bytheGuarantor; and 796-77WHEREAS,Guarantor iswillingtounconditionally guarantee theperformance oftheContractor; NOW,THEREFORE, tounducetheCountyintoenteringintotheAssumption Agreement withtheContractor, theGuarantor, inconsideration oftheforegoing andthesumofONEANDNO/100DOLLAR($1.00),cashinhandpaidbytheCountytotheGuarantor forthedeliveryofthisguaranty, thereceiptofwhichisherebyacknowledged, agreesasfollows:(1)ThattheGuarantor unconditionally guarantees theperformance bytheContractor ofalloftheContractor's obliga-tionsundertheAssumption Agreement withthesameforceandeffectasthoughtheGuarantor wereapartytotheAssumption Agreement andwas'jointlyandseverally obligated thereunder withtheContractor.

(2)ThattheGuarantor waivesanyandalldefensesinanyactionbroughttoenforcethisguarantyoranypart"hereof,atlaworinequity,exceptthedefensethat(a)theCountyhasnotperformed itsobligations undertheAssumption Agreement, theEGFContract(exceptasassumedbytheContractor intheAssumption Agreement),

theSWPFPurchaseContractandtheS"'PF0P<ration andMaintenance

Contract, asdefinedintheAssumption AG<<e>ent, or(b)FPLhasnotperformed itsobligations under

03796-77thepGFContract.

withoutlimitingtheoenerality ofthefore-@pinginanyway,butmerelybywayofillustration, theGuarantor specifically waivesanyandalltechnical,

.dilatory a-.,dnonmeritorious defensesandanydefensepredicated upontherehavingbeen:(i)anyamendment madetotheAssumption Agreer;.ent; (ii)anyassignment ortransfermadeoftheAssumption A~reerient bytheContractor, (iii)anymerger,consolidation oramalgamation oftheContractor intoorwithanyothercom-pan";(iv)anyinsolvency, bankruptcy, liquidation, reorganiza-tion,arrangement, readjustment, composition, windingup,dis-solutionorothersimilarproceeding involving oraffecting theContractor; and(v)anindulgence orforebearance intheenforce-centofanytermoftheAssumption Agreement.

(3)ThattheGuarantor waivesnoticeofacceptance ofthisguaranty andnoticesofeverykindandconsentstoanyandallchangesintheterms,covenants andconditions contained intheAssumption Agreement.

(4)ThatthisguarantymaybeenforcedbytheCountywithoutfirstresorting toanyactionagainsttheContractor orexhausting anyotherremedieswhichtheCountymayhave.{5)Thisguarantyshallbegovernedbythelawsofthe.StateofFloridaandsubjecttoSection16oftheAssumption "Kr<eaent byexecution ofthisguaranty, theGuarantor agrees tosubmittoserviceofprocessintheStateofFloridaforanycaimlaimor-controversy arisingoutofthisguarantyorreatxngoantoanybreachhereof,oriftheFederalcourtsshallhavejurisdiction thereof,tothejurisdiction oftheSouthenD'trictCourtinhliami,Florida.(6)Thatthisguarantyshallbe:bindingupona.dencrceableagainsttheGuarantor, itssuccessors, assignsandlegalrepresentatives, forthebenefitoftheCont',itssuccessors andassigns,(7)Theobligations oftheGuarantor hereunder areconditioned upontheissuanceofthisGuarantynotbeingznIconflictwithorinviolation ofthetermsofanyagreement towhichtheGuarantor issubjectontheCommencement Date,asdefinedintheEGFContract, I'>WETNESSWHEREOF,theGuarantor hasexecutedthisinstrument thedayandyearfirstabovewritten.Signed,sealedanddelivered inthepresenceof:PARSONS6MLTTTEl10RE,INCORPORATED By:C/ill<<i'+gl!Cggq~pgf h~pI/Attest:ecretrPI RATIFICATION ANDCONTINUING GUARANTY(ASSUMPTION AGREEMENT)

THISRATIFICATION ANDCONTINUING

GUARANTY, madeandenteredintoasofthis4thdayofMay,1978,byPARSONS&WHITTEMORE, INCORPORATED, aNewYorkcorporation, whosemailingaddressis200ParkAvenue,NewYork,NewYork10017(hereinafter called"Guarantor"

),toandforthebenefitofMetropolitan DadeCounty,Florida,apolitical subdivision oftheStateofFlorida,actingbyandthroughtheBoardoflCountyCommissioners

{hereinafter calledthe"County").WITNESSETHWHEREAS,Resources Recovery(DadeCounty),Inc.<aDelawarecorporation (hereinaf tercalled"Resources Recovery"

)whichisawholly-owned subsidiary ofGuarantor, hasenteredintoanagreement withtheCountyentitledAgreement ForAssumption ofRightsandObligations UnderElectrical GeneralFacilityandSteamPurchaseAgreement (the"Original Assumption Agreement"

),datedasofMarch22'978'ursuant towhichResources Recoveryhasassumedcertainrightsandobligations oftheCountyunderan Electrical Generation FacilityandSteamDeliveryAgreement

<<EGF'ontract"

),executedasofOctober18,1977,betweentheCountyandFloridaPowerandLightCompany,aJFloridacorporation (hereinafter called"FPL");and>HEREAS,theGuarantor asofMarch22,.1978providedtotheCountyanunconditional Guaranty(the"Guaranty"

),ofallpromisesandobligations ofResources RecoveryarisingortoariseoutoftheOriginalAssumption Agreement; and,VHEREAS,Resources RecoveryandtheCountyintendtoreplacetheOriginalAssumption Agreement withaRestatedandAmendedAgreement ForAssumptions OfRightsandObligations underElectrical Generation andSteamDeliveryAgreement (the"Restated Assumption Agreement"

)tobedatedasofMay5,1978;andWHEREAS,theCountyandGuarantor herebyexpressly acknowle'dge andaffirmthattheGuarantywasintendedtoanddoesunconditionally andirrevocably guarantee therightsandobligations ofResources Recoveryandthoseofitssuccessors, legalrepresentatives andpermitted assignsundertheAssumption Agreement, including allextensions<

renewals, substitutions, amendments andotherchanges tedtothe'Restated As-ludingbutnot1imiethereto(incuituponitsexecution).

sumptionAgreementor,toinducetheCountytoNOHiTHEREFORE, theGuarantor, oexecutetheRestatedAssumption Agreement, doesherebyagreeasfollows:1.ThatethGuarantor doesexpreysslratify,allamendments totheRestatedconfirm,adoptandapproveatoasofthisdateoratanyAssumption Agreement enteredxntoas'fGuarantor hadexpressly approvedtimeinthefuture,asxuarsofthedateofexecution andagreedtosaidamendments asoihtsandobligations ofResources thereofandthattherightsanoislealrepresentatives andRecoveryanditssuccessors, legarstatedAssumption Agreement aspermitted assignsundertheRestatedareuaranteed bytheGuarantythesameisormaybeamendedareguarasmodifiedhereby;andndedhereby,remains2.ThattheGuaranty, asamended'sherebyratifiedandcon-infullforceandeffectandishereantoftherightsandobli-firmedasacontinuing guaranty0ealandtheirsuccessors, eggationsofResources Recoveryan representatives,'nd permitted assignsundertheRestatedAssumption Agreement.

1NHITNESSvJHEREOF, theGuarantor hasexecutedthisinstrument thedayandyearfirstabovewritten.Signedinthepresenceof:INCORPOlTL'0PARSONS4Nlll'VT4'i'10RL',

witnessed:

I;~'.as(~"rBp:iPresIident (Corporate Seal)

EXHIBITC~it~"/ji'li'<<:

>>.~i>'"""~,euSrnA:<Opp5 December8,l977Resources Recovery(DadeCounty),Inc.4Parsons6Nhittemore, Inc.200ParkAvenueNewYork,HewYork10017Attention:

Mr.PeterAlevra'xecutive VicePr'esident Gentlemen:

Youhaveinquiredastoouropinionconcerning thefeasibility ofobtaining fundingonbehalfofMetropolitan DadeCounty,Florida(the"County")foraperiodoftwentyyearsforanelectrical generation facility(the"EGF")tobeacquiredandoperatedinconjunction withato-be-con-structedsolidwasteresourcerecoveryfacility(the"Re-sourceRecoveryFaci'lity"),

alltobesituatedintheCounty.Youhaveadvisedthatyou,pursuanttoagreements (theSMPFAgreements"

)withtheCounty,willdesign,construct andoperatetheResourceRecoveryFacilitywhich,withtheexception oftheEGF,willbefundedseparate1y bytheCountyinconjunction with'heStateofFlorida.YouhavefurtheradvisedthattheCountyis'entering intoanagree-ment(the"FPLAgreement"

)withFloridaPower6Light<<>Pany("FPL")fortheacquisition oftheEGFandthelong-<<rmpurchaseofsteam.UndertheFpLAgreement, youhaveadvisedthatFPLhasagreedtopurchasetheEGFatapriceof$12i742,381 suchpricetobeadjustedbyaformulareflecting changesinthecost.oflabor,machinery andequipment occuringsubsequent toJunel,1976.Further/

Q//%<<<<<j"fg<ipier.ent,hasagreedtomakeemonthlynamonthlybasistorepay1tditrestthoftheEGF,withreaeFPL'bob1'otepcinonitsacceptance earperiod.oftheEGF.suchpaymentscommencngoftheEGFwouldnotberequiredpriordertainethereof.tsundercrcums'llinsuchevent,assuretespovidedfoithFPLthosepaymentsthroughrebatesproAreementandassumedbyyounanAgreemeneunderstanding, xtxsprpeunoosedthataf'ngvehiclefortheeasafxnancintrust,hfd,thEGF.Tosecureefaald'GFtothelendersandztfurthp11fthCt'htbtwouldgrantanassignment othFPLtobloasd'A"Fthh.1ofAppen~xA.2~gitslendersapahins,that'f,focareementtoeexFPL'spaymentsunderSectionA.2.uchgogthattheCountywould,underalcircumdeficiency.

onnationmadeavailable tous,Onthebasisoftheinfonnaxsbjecttotheexecutirexnformandsubstance sufferrgandapppfoppw4frominstitutional lendersfortexscusseperiod.erelyyoCharlesA.BallardVicePresident RATIFICATION ANDCONTINUING GUARANTY(ASSUMPTION AGREEMENT)

'HISRATIFICATION ANDCONTINUING

GUARANTY, madeandentered'intoasofthis4thdayofMayt1978'yPARSONSWHITTEMORE,,

INCORPORATED, aNewYorkcorporation, whosemailingaddressis200ParkAvenue,NewYork,NewYork10017(hereinafter called"Guarantor"

),toandforthebenefitofMetropolitan DadeCounty,Florida,apolitical subdivision oftheStateofFlorida,actingbyandthroughtheBoardofCountyCommissioners (hereinafter calledthe"County").NITNESSETHNHEREAS,Resources Recovery(DadeCounty),Inc.,aDelawarecorporation (hereinafter called"Resources Recovery"

)whichisawholly-owned subsidiary ofGuarantor phasenteredintoanagreement withtheCountyentitledAgreement ForAssumption ofRightsandObligations UnderElectrical GeneralFacilityandSteamPurchaseAgreement (the"Original Assumption Agreement"

),datedasofMarch22<1978,pursuanttowhichResources Recoveryhasassumedcertainrightsandobligations oftheCountyunderan Electrical Generation FacilityandSteam.DeliveryAgreement (the"EGFContract"

),executedasofOctober18,1977,betweentheCountyandFloridaPowerandLightCompany,aFloridacorporation (hereinaf tercalled"FPL");andgjfEREAS, theGuarantor asofMarch22,1978providedtotheCountyanunconditional Guaranty(the"Guaranty"

),ofa11promisesandobligations ofResources RecoveryarisingortoariseoutoftheOriginalAssumption Agreement; and,hHEREAS,Resources RecoveryandtheCountyintendtoreplacetheOriginalAssumption Agreement withaRestatedandAmendedAgreement ForAssumptions OfRightsandObligations underElectrical Generation andSteamDeliveryAgreement (the"Restated Assumption Agreement"

)tobedatedasofHay5,1978;and~HEREAS,theCountyandGuarantor herebyexpressly acknowledge andaffirmthattheGuarantywasintendedtoanddoesunconditionally andirrevocably guarantee therightsandobligations ofResources Recoveryandthoseofitssuccessors, legalrepresentatives andpermitted assignsundertheAssumption Agreement, including allextensions irenewals, substitutions, amendments andotherchangesI thereto(including butnotlimitedtotheRestatedAs-sumptionAgreement uponitsexecution).

NOW,THEREFORE, theGuarantor, toinducethe,CountytoexecutetheRestatedAssumption Agreement, doesherebyagreeasfollows:I1.ThattheGuarantor doesexpressly ratify,confirm,adoptandapproveallamendments totheRestatedAssumption Agreement enteredintoasofthisdateoratanytimeinthefuture,asifGuarantor hadexpressly approvedandagreedtosaidamendments asofthedateofexecution tthereofandthattherightsandobligations ofResources Recoveryanditssuccessors, legalrepresentatives andpermitted assignsundertheRestatedAssumption Agreement asthesameisormaybeamendedareguaranteed bytheGuarantyasmodifiedhereby;and2.ThattheGuaranty, asamendedhereby,remainsinfullforceandeffectandisherebyratifiedandcon-firmedasacontinuing guarantyoftherightsandobli-9ationsofResources Recoveryandtheirsuccessors, legal representatives, andpermitted assignsundertheRestated1EAssumption Agreement.

INHITNESSHHEREOF,theGuarantor hasexecutedthisinstrument thedayandyearfirstabovewritten.Signedinthepresenceof:PARSONS6HHITTEb10RE, INCORPORA Dwitnessed:,

,,/j,-,.",pl

-.By:Iresident(Corporate Seal) f;I<<]I5'