ML19344A214

Suppl Response of Util & Dow Chemical Co to 780112 Interrogatories of Intervenors Other than Dow.Certificate of Svc & Exhibits Encl.Related Correspondence

ML19344A214
Person / Time
Site:	Midland
Issue date:	01/12/1978
From:	Deline D, Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DOW CHEMICAL CO.
To:
References
NUDOCS 8008060564
Download: ML19344A214 (9)

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1. O 8 NUCLEAR REGULATORY COMMISSION

% 7 Before the Atomic Safety and licensing Board

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In the Matter of )

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CONSUMERS POWER COMPANY ) Docket Nos._50-320

) 50-330 (Midland Plant, Units 1 and 2) )

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' -SUPPLEMENTAL RESPONSE OF CONSUMERS POWER COMPANY AND THE DOW CHEMICAL COMPANY TO INTERROGATORIES OF INTERVEN0RS OTHER THAN DOW C

Consumers Power Company (" Licensee") and The Dow Chemical Company

("Dow") submit the following supplemental answer to that portion of Intervenors' Other than Dow ("Intervenors") Interrogatory No.1 related -1 to the status of negotiations between Licensee and Dow. Intervenors' Interrogatory was directed to both Licensee and Dow.

l QUESTION

1. Testimony'in this proceeding thus far has indicated a dispute between Consumers and Dow Chemical Company (Dow) relating to the con-struction of the Midland Nuclear Facility and sale and purchase of steam and electricity from said facility. All or a portion of the Dow-Consumers contracts have been identified or attached in written testimony of '

Consumers' witnesses in this proceeding, Messrs. Keeley and Howell.

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1 With respect to any dispute concerning such contracts between Consumers and Dow please state the following:

(a) Describe in detail 'the nature of the-dispute and the status of any negotiations to resolve said dispute. If it. is your position that no dispute exists, please state the basis therefor in light'of.the cross-examination testimony of Dow witness Temple, including but not limited to the disclosures made by Mr. Temple of meetings between Consumers and -Dow and their representatives in.

September,1976 wherein suggestions of lawsuits-were made, as well as correspondence between Youngdahl and Temple during 1975 and 1976 which has.already been produced by Consumers.

ANSWER 1

In accordance with the schedule provided with the earlier Supple-mental Interrogatory Response dated December 22, 1977, Licensee-and Dow- .

H met at Dow'.s offices in Midland, Michigan, on January 12, 1978. Attached .-_ !

to this Response as Exhibit "A" j is a summary report of that meeting. l th.<..vi.... 5. $ e'~.H

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.Stephe.n H. Howell, Vice President-Projects, Engineering and Construction  ::j

~ Consumers Power Company y

hl f'D. D'ick DeLine) ...W b ,./ /.i .

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Manufacturing Manager -

Michigan Division I Dow Chemical U.S.A.

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! Stephen H. 'Howell,' being duly sworn,-deposes and says that the 4

foregoing Supplemental; Response of Consumers Power Company' and The -

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Dow Chemical Company t'a Interrogatories of Intervenors Other than Dow

.is true to the Lbest of his knowledge and belief.

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. Stephen H. Howell STATE OF MICHIGAN )

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COUNTY ,0F; MIDLAND )

Subscribed and sworn to before me, a Notary Public, this 12th day of January,1978.-

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b' w fr-u Connie K. Miller .

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Midland County, Michigan My Commission Expires: August 16, 1981

! s D. Dick:DeLine, being duly' sworn, deposes and says that- the fore- '

going Supplemental Response of Consumers Power Company and The Dow Chemical Company to Interrogatories of Intervenors Other than Dow is true to the best of his knowledge and belief. -4

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8h D. Dick DeLine "

- STATE. OF- MICHIGAN . ) ~

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)UNTY.- 0F MIDLAND ) :

Subscribe'd and~~ sworn to before me, a Notary Public, this 12th~ day of. January, - 1978.

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. Connie K. Miller- /

Midland County, Michigan , ,

My Commission Expires: August 16, 1981, f-k

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,\ RfIsq f 6 (;lE CONSUMERS POWER-DOW REOPENED NEGOTIATIONS.  % ,..

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Date of Meeting: January 12, 1978 "

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Subject:

Minutes of Nuclear Contracts- Negotiatio

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at Midland, Michigan se8 u

Presentt The Dow Chemical Company: DDDeLine, LWPribila, JRBurroughs Consumers Power Company: SHHowell, LBlindemer, GSKeeley In addition, a drafting committee of WAGroening, Jr.

and PDConner for~ Dow and WAKirkby for Consumers attended various portions of the meeting. RMontross and RBauman of Consumers Power also attended certain portions of the negotiating meeting.

Dow proposed the attached Agenda which was agreed upon.

Agenda items

1. ,ater W Resources Management 5 Dow reviewed parameters regarding the operation of the cooling pond.

l Dow also reviewed potential benefits which might be obtained by optimizing the operation of the cooling pond with the addition of an alternate cooling water source. The parties appointed technical l subcommittees to investigate the matter further and to report to the negotiating committees. -

of interest in pursuing this subject.The parties agreed there was a mutua I

II. Drafting Responses

a. Radioactivity Dow presented ' Consumers with a draft entitled " Radioactivity"

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in response to a. similar draft that Consumers provided at the last meeting._ The parties discussed the differences between the

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respective draf ts and agreed in concept as to what a draft on this subject should contain. .This matter has now been referred s to the drafting committee. The remaining open item on this sub-

-ject involves the standards for ascertaining the freedom from radioactivity of the steam to be supplied by Consumers. Consumers ,,

will study data to be provided by Dow on the open item and respond at a future meeting.

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b. Decommissioning Costs Dow presented Consumers with 'a proposal for Decommissioning

-rastssin response to discussion,s on this matter at a previous

.nteting. ; Consumers commented on Dow's proposed paragraph and s;ggested-a different method of payment and accruing costs..

- Both parties agreed to discuss the matter further within their respective organizations.

.c. Target Commercial Operation Dates t

The drafting committee brought. questions to the negotiating comnaittee on the interpretation of " commercial operation dates."

- Agreement-in concept was reached hy.the negotiating committees and referred back to the drafting committee.

d. MPSC Jurisdiction Dow presented a suggested paragraph for _ inclusion in the Contract. .The parties discussed the matter and agreed that ~

experts from each of them specializing in regulatory matters

would meet early 'next week in an attempt to resolve points of difference.-

< III. Discussion of Unresolved Items, '

-a. Steam from Unit 2 (Item 25, Agenda of 1/5/78) 2 Consumers reported the results of a preliminary feasibility L

study of getting steam from Unit 2 when it comes on line in March of 1981. It appeared possible that such steam could be- 2 furnished'but t. e additional cost factors of providing this steam need1further study. Consumers will' attempt to make a further study and give Dow an approximation of costs.

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The matter of providing steam to Dow-when Unit No.1 is 'down

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was raised. Consumers confirmed the-concept that the plant would be ~ designed and operated so as to supply backup steam from No. 2 when:No. I was-down. However, Consumers pointed out-that whan this happened, there would be a -decrease'in electrical generating

. capacity and attendant increased costs which should be born by Dow. -Dow ~ responded that it would expect Consumers to differentiate

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between normal and abnormal- down time on Unit Jk). . l. Dow also told Consumers .that 'it'would propose a paragraph which provided . ,m

.for Unit No. 2 to be.used as aLbackup for_ Unit No. .l. Consumers

.will_ provide _ Dow with cost estimates for 'the-inef ficiencies which

.they believe will occur when Unit No. 2 supplies ' steam. ~

'b. Recoverable Cost (Item 22,. Agenda of 1/5/78)

- Consumers. provided Dow with a proposal for _ recoverable' costs.

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' Lc; Electric: Power Sale (Item 24,; Agenda of 1/5/78) j i

.. $ Consumers presented Dow-a proposal in response to Dow's'

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offer- to sell ConsumersTpower 'when .Dow's:generatinij plants are

producing power Inicxcess

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' PROPOSED' e, AGENDA:

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'DOW/CP NEGOTIATING MEETING-

January 12,11978!

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Housekeeping-Items-  : r l

-:I. Water . Resources Management ~

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-III. 'Discussioniof Unresolved' Items I

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UNITED STATES OF N4 ERICA =

NUCLEAR REGULATORY COMMISSION 5" dggt W7F s

y-e**d*1 n 4mw Before the Atomic Safety and' Licensing Board g, i In the Matter of

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CONSUMERS POWER COMPANY ) Docket Nos. 50-329

) 50-330 (Midland Plant, Units 1 and 2) )

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CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Supplemental c Response of Consumers Power. Company and The Dow Chemical Company to <

Interrogatories of Intervenors Other than Dow" dated January 12, 1978, were served upon the were individuals whose names appear on the attached Service List by deposit in the United States mail, postage prepaid and properly addressed, on the 13th day of January, 1978.

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a m .n.~.M:~f')-)i2i Connie K. Miller /

nJ The Dow Chemical Company Legal Department

' P.O. Box 271 Midland, MI 48640

-January 13, 1978 a Attachmen t: Service List lS s

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SERVICE LIST-Marshall E. Miller, Esq. , Chairman - Richard K. Hoefling, Esq.

Atomic Safety and Licensing' Board Counsel to HRC Staff U.S. Nuclear Regulatory Comission Nuclear Regulatory Commission y Washington, D.C. 20555: Washington, D.C. 20555 Dr. J. Venn Leeds, ~ Jr. . Caryl A. Bartelman, Esq.

Atomic Safety and Licensing Board Michael ~I. Miller, Esq.

10807 Atwell Isham, Lincoln & Beale Houston, Texas 77096 One First National Plaza Chicago, IL 60603

, Dr. Emeth A. Luebke Atomic Safety and Licensing Board

~ Atomic Safety'and Licensing Board H U.S. Nuclear Regulatory Comission Panel Washington, D.C. 20555 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 l Myron M. Cherry, Esq.

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One IBM Plaza Atomic Safety and Licensing Appeal

' Chicago,'IL- 60611 Panel U.S. Nuclear Regulatory Commission.

i Judd L. Bacon, Esq. Washington, D.C. 20555 l Consumers Power Company

• 212 West Michigan Avenue Docketing and Service Section~ "

Jackson, MI 49201 Office of the Secretary s U.S. Nuclear Regulatory Commission l Ms. Mary Sinclair Washington, D.C. 20555 5711.Summerset Street Midland, MI 48640-

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Harold F. Reis, Esq.

JRobert Lowenstein, Esq.

m Lowenstein, Newman, Reis &

~ Axelrad .

1025. Connecticut-Avenue Washington',-D.C. 20036

Mr. - Steve Gadl'er 2120 Carter Avenue St.. Paul, Minnesota' 55108-Norton Hatlie, Esq.-

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Attorney at Law.

P.O. Box 103 '

Navarre,~Minnesot'a '55392

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