ML17266A466

Discusses Gf Landegger 810529 Ltr to NRC in Which Parsons & Whittemore Claim Title to Resource Recovery Plant.Ltr Should Not Be Entertained or Acted Upon.Ltr Withholds Matl Facts.Certificate of Svc Encl

ML17266A466
Person / Time
Site:	Saint Lucie
Issue date:	06/10/1981
From:	BOUKNIGHT J A FLORIDA POWER & LIGHT CO., LOWENSTEIN, NEWMAN, REIS, AXELRAD & TOLL
To:	CHILK S J NRC COMMISSION (OCM)
References
ISSUANCES-A, NUDOCS 8106120311
Download: ML17266A466 (6)

Text

Pr~.ccuiILPfs.,LAWOFFICESLOWEHSTEIV,NENZLh&,REIS8cAXELRADROBERTLOWCNSTCINJACKR.NLWHANHAROLDF.REI5HAURICCAXCLRADKATHLCCNH,5HCAJ.A.BOUKNIOHT.JR.HICHACLA.BAUSCRDOUGLASB.ORECNC.ORCBORYBARNCSALBERTV.CARR,JR.ANNEW.COTTINGHAHKATHLCCNACOXROBERTH.CULPPETERO.FLYNNSTEVENP.'RANTZFREDERICSBRAYALVINH.OUTTCRHANDAVID0POWCLL+DAVIDB.RASKINDONALDJ.SILVCRHAN>ADM,KCN,IIQPIJJ@~~198June10,1981IO2SCONNECTICUTAVENUE>N.W.WASHINGTON>0.C.20036202~862-8400~"WHYusHRC~iuN<0A8pfiieoQTgin~wCCrn~~0,'i'cin-5SsticeBranchMr.SamuelJ.ChilkSecretaryoftheCommissionU.S.NuclearRegulatoryCommissionWashington,D.C.20555Re:LetterofMr.GeorgeF.Landegger,President,,Parsons&Whittemore,Inc.

DearMr.Chilk:

ThisletterismadenecessarybythesubmittaltotheCommissionofacommunicationdatedMay29,1981fromG.F.Landegger,onbehalfofParsons&Whittemore,Inc.anditssubsidiary[P&W],acopyofwhichwasrecentlyreceivedbytheundersigned.Inthatletter,P&Wclaimsthatit"holds.title"tgh"resourcerecoveryplant"forprocessingsewageinMiami,FloridaandthatindecliningtoaccedetovariousdemandsconcerningthatplantbyP&W,FloridaPower&LightCompany[FPL]hassomehowdeniedP&WNNRC-conferredrights"andviolatedthelicenseconditionsapprovedbytheLicensingBoardinDocketNo.50-389Kvis-a-visFPL'sSt.LuciePlant,UnitNo.2.ThereisnobasisintheNRC'sregulationsfortheCommissiontoentertainthisletterortoactiriresponsetoit.Moreover,P&W'sletternotonlyhurlschargeswhichaedemonstrablyuntrue,itwithholdsthematerialfactsadversetoitsallegationstosuchadegreethatFPLfeelscompelledtoapprisetheCommission,withthisbriefresponse,ofatleastafewofthepertinentfactsP&Womits:1..P&W'sletterfailstoinformtheCommissionthatP&WhasraisedallegationsbasedonthesamesetofallegedfactsintwoproceedingspendingbeforetheNRC.P&WhasfiledggP+tl LO%'EPSTEINNEWMAN,Rzxs&Mr.SamuelJ.ChilkJune10,1981PageTwoPetitionstoInterveneinboththeSt.LucieUnitNo.2operatinglicenseproceeding,DocketNo.50-389-OLandtheon-goingantitrustproceedingDocketNo.50-389A.P&W'spetitionwasproperlydeniedintheoperatinglicenseproceedingbyOrderdatedJune3,1981."/2.AsisthecasewithotherfilingsthatP&Whasmadeto%heLicensingBoardsintheproceedingsnotedabove,itsletter'failstoinformtheCommissionthatcontractsexistwhichdepriveP&Wofanyvalidlegalinterestinthe"re-sourcerecoveryplant."Infact,P&WisactingindisregardofitsowncontractualobligationsconcerningthatplantandininterferencewiththelegalrightsofFPLandthemunicipal-ityofDadeCounty,Florida.Abriefdescriptionofthefacts,tothe'extentFPLhasdiscoveredthemoverP&W'sresistance,mayilluminatewhytheywerenotvoluntarilydisclosed--theybelieP&W'sassertions.P&Wisapparentlyaconstructioncompany;itisundercontracttoconstructtheresourcerecoveryplantforDadeCounty,Florida.Theplantinvolvesbothasolidwasteprocessingfacilityandanelectricgeneratorwhichissup-posedtoproduceelectricityfromthesteamraisedinthesolidwastedisposalprocess.P&W'sletter,anditspriorpleadings,neglecttodisclosetotheCommissionthatFPL'sexpressedreasonforrefusingtoaccedetoP&W'sdemandswastheexistenceofabindingcontractbetweenFPLandDadeCounty,Florida,whichvestsinFPLthelegalrighttoown,operate,andproduceelectricityfromthepartoftheplantwhichisdesignedtoproduceelectricity.FPLunderstandsShatDadeCountyisentitledtoownandusethesolidwasteprocessingpartofthefacility.FPL'scounselisinformedthatthereexistsanothercontract,an"AssumptionAgreement"betweenP&WandDadeCounty(whichP&Whasalsofailedtodisclosetoth'eCommissioninanyofitssubmissions)inwhichP&WapparentlyhasassumedtheobligationsofDadeCountytoFPLandhasitselfconfirmedthatFPLhasthelegalrighttothegeneratingfac-ility.~*/ThesefactsdefeatanyclaimonP&W'sparttoalaw-fulrighttocontrol,ownership,oroperationofthefacility."/ThePetition,however,wasstillpendingatthetimeP&Wsubmittedits'lettertotheCommission."*/See,ApplicationforIssuanceofSubpoenas,datedMay8,1981,addressedtotheAtomicSafetyandLicensingBoardinDocketNo.50-389A.

Lowzvsvzzm,Nm~,Rzxs&a~UMr.SamuelJ.ChilkJune10,.1981PageThreeNoneofthesefactshasbeenbroughttotheattentionoftheCommissionoranyAtomicSafetyandLicensingBoardbyP&W.Indeed,beforetheLicensingBoardinDocketNo.50-389A,PGWhasvigorouslyresisteddiscoveryintothebasisofitsassertionsconcerningthegeneratorinquestion,andhasarguedthattheBoardshouldgrantitspetitiontointervenewhetheritsassertionsaretrueornot."/3.Inassertinginitsletterthatitisa"qualifyingfacility"withinthemeaningofthePublicUtilitiesRegulatoryPolicyAct,PGWdidnotmentionthatithasfiledanappli-cationwiththeFederalEnergyRegulatoryCommissionassertingsuchqualifications,thatFPLhasopposedtheapplicationandthatFERChasnotyetacted.FPLbelievesthatapplicationwillbedenied.FPLisinfullcomplianceandintendstocontinuetocomplywithFERCregulationsconcerningqualifyingfaciities,aswellaswiththelicenseconditionsimposed,bythisCommission.4.InitsletterP&WclaimsthatFPLisresponsibleforthe"resourcerecoveryplant"not,beingcurrentlyusedtogenerateelectricity.Thatmisstatesthefacts.Assumingtheplantvillopeate,anassumptionthatissubjecttocon-siderabledoubt,*"/,.then...thereason-it.isnotinoperationnowisthatP&WEasrenegedonitso'utstand7ngcontractualobligations.Allthat,wouldbenecessaryfortheplanttobegin"generating-electricitywouldbeforP&Wtocomplywithitscommitmentstotransferpossessionoftheplant'toDadeCountyandFPLsothatitcanbeoperated.IfthefacilitycouldbemadetoworkandifP&Wweretrulymotivatedbytheloftynationalpolicyconsiderationsitcites,andnotbyitsowngain,FPLcouldbeginpromptlytogenerateelectricityfrom~/SeeBriefofParsons6Whittemore,Inc.anditsSubsidiariesinOppositiontoApplicationforIssuanceofSubpoenas,datedJune1,1981,inDocketNo.50-389A.""'/AccordingtoaComplaintfiledagainstPGWbyMetropolitanDadeCounty,Florida,intheUnitedStatesDistrictCourtfortheSouthernDistrictofFlorida,theonlyprevioussuchplanteverconstructedbyParsons&Whittemorehasfailedtooperateproperly.MetroolitanDadeCountv.ParsonsaWhittemore,No.80-33-Czv.EPS,fileFeb.8,981,Paras,53-54.Accordingly,theCounty,whichhasdedicatedtotheproject$128million,thevirtualentiretyofitssolidwastedisposalfunding,nowfearsthatithasfruitlessly"exhaustedallthefundsavailableandsetasideforprovisionofnecessarywastetreatment."Para.56(d).

i0LowaNsrzxw;Nmm~,Rzzs8:Aa~Mr.SamuelJ.ChilkJune10,.1981PageFourthefacilitypursuanttoitslawfulrighttodoso.AndDadeCountycouldequallypromptlyobtainthewastedis-posalfacilitieswhichitneeds.,Instead,itisclearthatP&W'smotivationisconsiderablymorematerialisticthanaltruistic.FPLbelievesthatP&W'sobjective,infloodingtheNRCwithitspapers,istogainleveragewhich(ithopes)willaiditinextracting(fromDadeCountyandFPL)moremoneythanitisentitledtounderitscontract.Insum,thereisnomerittoP&W'scomplaint,and,more-over,P&WcomesbeforetheCommissionwithuncleanhands.Ithas,bynowonseveraloccasions,submittedpleadingswithsignificantomissionstotheCommissionanditsinstrumental-ities.Thefactswhich'P&WhavechosennottodiscloserevealcommercialconductonP&W'spartwhichFPLbelievesshouldnotbe,.andwillnotbe,foundacceptablebyanycourtoragency.FPLbelievesthatP&W'sassertionshavenorelevanceormaterialityinanyproceeding"beforethisCommission.However,iftheCommissionintendstoconsideranyactionbasedonP&W'sletter,FPLrespectfullyrequeststheopportunitytopresenttotheCommissionacompleteresponse.Respectfuiiysubmitted,JAB/arcc:ServiceListMr.MerrettStierheim.A.Bouknight,Jr.ttorneyforFloridaPower&LightCompany lA1~fUNITEDSTATESOFAMERICANUCLEARREGULATORYCOMMISSIONBEFORETHEATOMICSAFETYANDLICENSINGBOARD!~)bOCK~USMPCHUM$9)98),>"'~-S'.crehr~,~S:face))FLORIDAPOWER&LIGHTCOMPANY)(St.LuciePlant,UnitNo.2))Docket.No.50-389ACERTIFICATEOFSERVICEIherebycertifythatcopiesoflettertoSamuelJ.Chilk,U.S.NuclearRegulatoryCommissionreletterofGeorgeF.Landegger,President,Parsons&Whittemore,Inc.'wasservedbyhanddelivery*orbydepositintheU.S.Mail,firstclass,postageprepaidthis10thdayofJune,1981.IvanW.Smith,EsquireChairmanAtomicSafetyandLicensingBoardU.S.NuclearRegulatoryCommissionWashington,D.C.20555RobertM.Lazo,EsquireAtomicSa'fetyandLicensingBoardU.S.Nucle'ar.Regulatory;-Commission'ashington,D.C.20555MichaelA.Duggan,EsquireCollegeofBusinessAdministrationUniversityofTexasAustin,Texas78712DocketingandServiceBranchOfficeoftheSecretaryU.S.NuclearRegulatoryCommissionWashington,D.C.20555JeromeSaltzman,ChiefAntitrust&IndemnityGroupU.S.NuclearRegulatoryCommissionWashington,D.C.20555ThomasGurney,Sr.,Esquire203NorthMagnoliaAvenueOrlando,Florida32802AtomicSafetyandLicensingBoardU.S.NuclearRegulatoryCommissionWashington,D.C.20555RobertE.BathenFredSaffer.R.W:Beck,.&AssociatesP.O.Box6817Orlando,Florida32803RobertA.Jablon,EsquireAlanJ.Roth,Esquire2600VirginiaAvenue,N.W.Washington,D.C.20037WilliamC.Wise,EsquireSuite500120018thStreet,N.W-Washington,D.C.20036WilliamH.Chandler,EsquireChandler,O'Neal,Avera,Gray&StriplingPostOfficeDrawer0Gainesville,Florida32602 JanetUrban,EsquireP.O.Box14141Washington,D.C.20044DonaldA.Kaplan,'squireRobertFabrikant,EsquireAntitrustDivisionU.S.DepartmentofJusticeWashington,D.CD20530.*JosephRutberg,EsquireLeeScottDewey,EsquireFredricD.Chanania,EsquireCounselforNRCStaffU.S.NuclearRegulatoryCommissionWashington,D.C.20555CharlesR.P.Brown,EsquireBrown,PaxtonandWilliams301South6thStreetP.O.Box1418FortPierce,Florida33450I.'enjaminH.VoglerU.S.NuclearRegulatoryCommissionWashington,D.C.20555*GeorgeR.Kucik,EsquireMareGary,EsquireEllenE.Sward,EsquireArent,Fox,Kintner,Plotkin6Kahn1815HStreet,N.W.Washington,D.C.20006AnnP.Hodgdon,Esquire-Office-'oftheExecutiveLegalDirectorU;S.NuclearRegulatoryCommissionWashington,D.C.20555RichardS.Salzman,EsquireAtomicSafetyandLicensingAppealBoardPanelU.S.NuclearRegulatory.CommissionWashington,D.C.205558.A.Boknight,Jr.owenstein,Newman,Reis6.Axelrad1025ConnecticutAvenue,N.W.Washington,D.C.20036(202)862-8400DATED:June10,1981