ML17266A466

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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 NextEra Energy icon.png
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&,REIS8cAXELRADROBERTLOWCNSTCIN JACKR.NLWHANHAROLDF.REI5HAURICCAXCLRADKATHLCCNH,5HCAJ.A.BOUKNIOHT.

JR.HICHACLA.BAUSCRDOUGLASB.ORECNC.ORCBORYBARNCSALBERTV.CARR,JR.ANNEW.COTTINGHAH KATHLCCNACOXROBERTH.CULPPETERO.FLYNNSTEVENP.'RANTZFREDERICSBRAYALVINH.OUTTCRHAN DAVID0POWCLL+DAVIDB.RASKINDONALDJ.SILVCRHAN

>ADM,KCN,IIQPIJJ@~~198June10,1981IO2SCONNECTICUT AVENUE>N.W.WASHINGTON>

0.C.20036202~862-8400~"WHYusHRC~iuN<0A8pfiieoQTgin~wCCrn~~0,'i'cin-5SsticeBranchMr.SamuelJ.ChilkSecretary oftheCommission U.S.NuclearRegulatory Commission Washington, D.C.20555Re:LetterofMr.GeorgeF.Landegger, President,,

Parsons&Whittemore, Inc.

DearMr.Chilk:

Thisletterismadenecessary bythesubmittal totheCommission ofacommunication datedMay29,1981fromG.F.Landegger, onbehalfofParsons&Whittemore, Inc.anditssubsidiary

[P&W],acopyofwhichwasrecentlyreceivedbytheundersigned.

Inthatletter,P&Wclaimsthatit"holds.title"tgh"resource recoveryplant"forprocessing sewageinMiami,Floridaandthatindeclining toaccedetovariousdemandsconcerning thatplantbyP&W,FloridaPower&LightCompany[FPL]hassomehowdeniedP&WNNRC-conferred rights"andviolatedthelicenseconditions approvedbytheLicensing BoardinDocketNo.50-389Kvis-a-vis FPL'sSt.LuciePlant,UnitNo.2.ThereisnobasisintheNRC'sregulations fortheCommission toentertain thisletterortoactiriresponsetoit.Moreover, P&W'sletternotonlyhurlschargeswhichaedemonstrably untrue,itwithholds thematerialfactsadversetoitsallegations tosuchadegreethatFPLfeelscompelled toapprisetheCommission, withthisbriefresponse, ofatleastafewofthepertinent factsP&Womits:1..P&W'sletterfailstoinformtheCommission thatP&Whasraisedallegations basedonthesamesetofallegedfactsintwoproceedings pendingbeforetheNRC.P&WhasfiledggP+tl LO%'EPSTEIN NEWMAN,Rzxs&Mr.SamuelJ.ChilkJune10,1981PageTwoPetitions toIntervene inboththeSt.LucieUnitNo.2operating licenseproceeding, DocketNo.50-389-OL andtheon-goingantitrust proceeding DocketNo.50-389A.P&W'spetitionwasproperlydeniedintheoperating licenseproceeding byOrderdatedJune3,1981."/2.AsisthecasewithotherfilingsthatP&Whasmadeto%heLicensing Boardsintheproceedings notedabove,itsletter'failstoinformtheCommission thatcontracts existwhichdepriveP&Wofanyvalidlegalinterestinthe"re-sourcerecoveryplant."Infact,P&Wisactingindisregard ofitsowncontractual obligations concerning thatplantandininterference withthelegalrightsofFPLandthemunicipal-ityofDadeCounty,Florida.Abriefdescription ofthefacts,tothe'extent FPLhasdiscovered themoverP&W'sresistance, mayilluminate whytheywerenotvoluntarily disclosed

--theybelieP&W'sassertions.

P&Wisapparently aconstruction company;itisundercontracttoconstruct theresourcerecoveryplantforDadeCounty,Florida.Theplantinvolvesbothasolidwasteprocessing facilityandanelectricgenerator whichissup-posedtoproduceelectricity fromthesteamraisedinthesolidwastedisposalprocess.P&W'sletter,anditspriorpleadings, neglecttodisclosetotheCommission thatFPL'sexpressed reasonforrefusingtoaccedetoP&W'sdemandswastheexistence ofabindingcontractbetweenFPLandDadeCounty,Florida,whichvestsinFPLthelegalrighttoown,operate,andproduceelectricity fromthepartoftheplantwhichisdesignedtoproduceelectricity.

FPLunderstands ShatDadeCountyisentitledtoownandusethesolidwasteprocessing partofthefacility.

FPL'scounselisinformedthatthereexistsanothercontract, an"Assumption Agreement" betweenP&WandDadeCounty(whichP&Whasalsofailedtodisclosetoth'eCommission inanyofitssubmissions) inwhichP&Wapparently hasassumedtheobligations ofDadeCountytoFPLandhasitselfconfirmed thatFPLhasthelegalrighttothegenerating fac-ility.~*/

ThesefactsdefeatanyclaimonP&W'sparttoalaw-fulrighttocontrol,ownership, oroperation ofthefacility.

"/ThePetition, however,wasstillpendingatthetimeP&Wsubmitted its'lettertotheCommission.

"*/See,Application forIssuanceofSubpoenas, datedMay8,1981,addressed totheAtomicSafetyandLicensing BoardinDocketNo.50-389A.

Lowzvsvzzm, Nm~,Rzxs&a~UMr.SamuelJ.ChilkJune10,.1981PageThreeNoneofthesefactshasbeenbroughttotheattention oftheCommission oranyAtomicSafetyandLicensing BoardbyP&W.Indeed,beforetheLicensing BoardinDocketNo.50-389A,PGWhasvigorously resisteddiscovery intothebasisofitsassertions concerning thegenerator inquestion, andhasarguedthattheBoardshouldgrantitspetitiontointervene whetheritsassertions aretrueornot."/3.Inasserting initsletterthatitisa"qualifying facility" withinthemeaningofthePublicUtilities Regulatory PolicyAct,PGWdidnotmentionthatithasfiledanappli-cationwiththeFederalEnergyRegulatory Commission asserting suchqualifications, thatFPLhasopposedtheapplication andthatFERChasnotyetacted.FPLbelievesthatapplication willbedenied.FPLisinfullcompliance andintendstocontinuetocomplywithFERCregulations concerning qualifying faciities,aswellaswiththelicenseconditions imposed,bythisCommission.

4.InitsletterP&WclaimsthatFPLisresponsible forthe"resource recoveryplant"not,beingcurrently usedtogenerateelectricity.

Thatmisstates thefacts.Assumingtheplantvillopeate,anassumption thatissubjecttocon-siderable doubt,*"/,.then...the reason-it.isnotinoperation nowisthatP&WEasrenegedonitso'utstand7ng contractual obligations.

Allthat,wouldbenecessary fortheplanttobegin"generating-electricity wouldbeforP&Wtocomplywithitscommitments totransferpossession oftheplant'toDadeCountyandFPLsothatitcanbeoperated.

IfthefacilitycouldbemadetoworkandifP&Wweretrulymotivated bytheloftynationalpolicyconsiderations itcites,andnotbyitsowngain,FPLcouldbeginpromptlytogenerateelectricity from~/SeeBriefofParsons6Whittemore, Inc.anditsSubsidiaries inOpposition toApplication forIssuanceofSubpoenas, datedJune1,1981,inDocketNo.50-389A.""'/According toaComplaint filedagainstPGWbyMetropolitan DadeCounty,Florida,intheUnitedStatesDistrictCourtfortheSouthernDistrictofFlorida,theonlyprevioussuchplanteverconstructed byParsons&Whittemore hasfailedtooperateproperly.

MetroolitanDadeCountv.ParsonsaWhittemore, No.80-33-Czv.EPS,fileFeb.8,981,Paras,53-54.Accordingly, theCounty,whichhasdedicated totheproject$128million,thevirtualentiretyofitssolidwastedisposalfunding,nowfearsthatithasfruitlessly "exhausted allthefundsavailable andsetasideforprovision ofnecessary wastetreatment.

"Para.56(d).

i0LowaNsrzxw; Nmm~,Rzzs8:Aa~Mr.SamuelJ.ChilkJune10,.1981PageFourthefacilitypursuanttoitslawfulrighttodoso.AndDadeCountycouldequallypromptlyobtainthewastedis-posalfacilities whichitneeds.,Instead, itisclearthatP&W'smotivation isconsiderably morematerialistic thanaltruistic.

FPLbelievesthatP&W'sobjective, infloodingtheNRCwithitspapers,istogainleveragewhich(ithopes)willaiditinextracting (fromDadeCountyandFPL)moremoneythanitisentitledtounderitscontract.

Insum,thereisnomerittoP&W'scomplaint, and,more-over,P&WcomesbeforetheCommission withuncleanhands.Ithas,bynowonseveraloccasions, submitted pleadings withsignificant omissions totheCommission anditsinstrumental-ities.Thefactswhich'P&W havechosennottodiscloserevealcommercial conductonP&W'spartwhichFPLbelievesshouldnotbe,.andwillnotbe,foundacceptable byanycourtoragency.FPLbelievesthatP&W'sassertions havenorelevance ormateriality inanyproceeding "beforethisCommission.

However,iftheCommission intendstoconsideranyactionbasedonP&W'sletter,FPLrespectfully requeststheopportunity topresenttotheCommission acompleteresponse.

Respectfuiiy submitted, JAB/arcc:ServiceListMr.MerrettStierheim

.A.Bouknight, Jr.ttorneyforFloridaPower&LightCompany lA1~fUNITEDSTATESOFAMERICANUCLEARREGULATORY COMMISSION BEFORETHEATOMICSAFETYANDLICENSING BOARD!~)bOCK~USMPCHUM$9)98),>"'~-S'.crehr~,

~S:face))FLORIDAPOWER&LIGHTCOMPANY)(St.LuciePlant,UnitNo.2))Docket.No.50-389ACERTIFICATE OFSERVICEIherebycertifythatcopiesoflettertoSamuelJ.Chilk,U.S.NuclearRegulatory Commission reletterofGeorgeF.Landegger, President, Parsons&Whittemore, Inc.'wasservedbyhanddelivery*orbydepositintheU.S.Mail,firstclass,postageprepaidthis10thdayofJune,1981.IvanW.Smith,EsquireChairmanAtomicSafetyandLicensing BoardU.S.NuclearRegulatory Commission Washington, D.C.20555RobertM.Lazo,EsquireAtomicSa'fetyandLicensing BoardU.S.Nucle'ar.

Regulatory;-Commission'ashington, D.C.20555MichaelA.Duggan,EsquireCollegeofBusinessAdministration University ofTexasAustin,Texas78712Docketing andServiceBranchOfficeoftheSecretary U.S.NuclearRegulatory Commission Washington, D.C.20555JeromeSaltzman, ChiefAntitrust

&Indemnity GroupU.S.NuclearRegulatory Commission Washington, D.C.20555ThomasGurney,Sr.,Esquire203NorthMagnoliaAvenueOrlando,Florida32802AtomicSafetyandLicensing BoardU.S.NuclearRegulatory Commission Washington, D.C.20555RobertE.BathenFredSaffer.R.W:Beck,.&Associates P.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&Stripling PostOfficeDrawer0Gainesville, Florida32602 JanetUrban,EsquireP.O.Box14141Washington, D.C.20044DonaldA.Kaplan,'squire RobertFabrikant, EsquireAntitrust DivisionU.S.Department ofJusticeWashington, D.CD20530.*JosephRutberg,EsquireLeeScottDewey,EsquireFredricD.Chanania, EsquireCounselforNRCStaffU.S.NuclearRegulatory Commission Washington, D.C.20555CharlesR.P.Brown,EsquireBrown,PaxtonandWilliams301South6thStreetP.O.Box1418FortPierce,Florida33450I.'enjamin H.VoglerU.S.NuclearRegulatory Commission Washington, D.C.20555*GeorgeR.Kucik,EsquireMareGary,EsquireEllenE.Sward,EsquireArent,Fox,Kintner,Plotkin6Kahn1815HStreet,N.W.Washington, D.C.20006AnnP.Hodgdon,Esquire-Office-'of theExecutive LegalDirectorU;S.NuclearRegulatory Commission Washington, D.C.20555RichardS.Salzman,EsquireAtomicSafetyandLicensing AppealBoardPanelU.S.NuclearRegulatory.

Commission Washington, D.C.205558.A.Boknight,Jr.owenstein, Newman,Reis6.Axelrad1025Connecticut Avenue,N.W.Washington, D.C.20036(202)862-8400DATED:June10,1981