Free Reply to Response to Motion - District Court of Federal Claims - federal

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APPENDIX

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PROTECTED MATERIAL TO BE DISCLOSED ONLY IN ACCORDANCE WITH U.S, COURT OF FEDER_a~ CLAIMS PROTECTIVE ORDER

Assessment Of Damages Resulting FromThe Department of Energy's Failure To Perform Its Contractual Obligations Regarding Indiana Michigan Power Company's Spent Nuclear Fuel

Avram S. Tucker Richard J. Sieracki Tucker Alan Inc. August 12, 2003

Avram S. Tucker Chief Executive Officer Tucker Alan Inc.

it Ricl~a.rd-'J. Sieracki Vice President Tucker Alan Inc.

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List Of Support Binders Binder A B C D E F G H I J K L M N O P Q R S T Damages Model Rerack Invoices - 1990 - 1992 - WO 777-2244 # Rerack Invoices - Jan. 1993 - Jun. 1993 - WO 777-2244 # Rerack Invoices - Jul. 1993 - Dec. 1993 - WO 777-2244 # Rerack Invoices - 1994 - 1996 -WO 777-2244 # Rerack Invoices - WO 877-2244 # Private Fuel Storage Costs Oilier Past DamageComponents Dry Storage Facility Design, Licensing AndConstruction Cost Estimate Post-Shutdo~vnCost Estimates Escalation Factors Dry Storage Container Purchase AndLoading Cost Estimates Cost Of Capital Discharges AndAccePtance Rates Labor Rates Would-Have-Been Rerack Decommissioning Study - August 2000 2000 DecommissioningStudy NESSupport Binder (1 of 2) 2000 DecommissioningStudy NESSupport Binder (2 of 2) Other Support Documents Title

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Revised Assessment Of Damages Resulting From.The Department of Energy's Failure To Perform Its Contractual Obligations Regarding Indiana Michigan Power Company's Spent Nuclear Fuel

Avram S. Tucker Richard J. Sieracki Tucker Alan Inc. November 25, 2003

AvramS. Tucker Chief Executive Officer Tucker Alan Inc.

Richard J. Sieraeki Vice President Tucker Alan Inc.

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List Of Support Binders Binder AA "B C D E F G H H Revised Damages Model Rerack Invoices - 1990 - 1992 - WO 777-2244 # Rerack Invoices - Jan. 1993 - Jun. 1993 - WO 777-2244 # Rerack Invoices - Jul. 1993 - Dec. 1993 - WO 777-2244 # Rerack Invoices - 1994 - 1996 - WO 777-2244 # Rerack Invoices - WO 87%2244 # Title

Private Fuel Storage Costs Other Past Damage Components Revised Dry Storage Facility Estimate Design, Licensing And Construction Cost

JJ K LL M NN 0 P Q R S T U V

Revised Post-Shutdown Cost Estimates Escalation Factors Revised Dry Storage Container Purchase And Loading Cost Estimates Cost Of Capital Revised Discharges And Acceptance Rates Labor Rates Would-Have-Been Rerack Decommissioning Study - August 2000 2000 Decommissioning Study NESSupport Binder (1 of 2) 2000 Decommissioning Study NESSupport Binder (2 of 2) Other Support Documents Holtec/PSEG Contract Holtec/PSEG Contract Volume 1 Volume 2

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TAI-0000002

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TAI-0000845

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ProtectedMatedal Subjectto Protective Order

Assessment Of Damages Resulting From The Department of Energy's Failure To Perform Its Contractual Obligations Regarding Southern Nuclear Operating Company's, Alabama Power Company's And Georgia Power Company's Spent Nuclear Fuel

Kenneth P. Metcalfe Richard J. Sieracki The Kenrich Group LLC

January 31, 2005

President The Kenrieh Group LLC

Chief Executive Officer The Kenrich Group LLC

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List Of Support Binders

Binder A B C D ~ E Damages Model Fuel Management Cost Of Capital

Title

Cask Loading/ Fuel Handling Cost Estimates Escalation ISFSI Cost Estimates

I J

ISFSI O&M Fuel Characterization Cost Estimates And Past Actual Costs MPC Cost Analysis

L M N 3 O

Labor Rates Would-Have-Been Costs Historical Financial Information Standard Contracts Licensing Documents Publicly Available Information U.S. Depamnent Of Energy Documents Other Support Documents

Q
R S

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In addition to the support binders, we have also reviewedBrace Hunt's deposition testimony and exhibits, Southem'sinitial damagesdisclosures submitted in September2004 and November 2004, Southem's responses to the Government's audit requests, and various legal filings.

F1 through F5 were previously used for Septemberand November 2004 submittals of Farley costs. H 1 through H 13 were previously used for Septemberand November 2004 submittals of Hatch costs. was previously used for September2004 submittal of Private Fuel Storage costs. V was previously used for September2004submittal of Vogfle costs.

THE KENRICH GROUP LLC

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IN THE UNITED STATES COL~T OF FEDERAL CLAKMS

)
INDIANA MICHIGAN POWER COMPANY, Plaintiff, v. UNITED STATES OF AMERICA, Defendant. )

)
)

)
)

)
)

No. 98-486C (Judge Hodges)

)
)

NOTICE OF DEPOSITION OF BRENT AUER Please take notice that, pursuant to Rule 30 of the Rules of the Court of Federal Claims, defendant, the United States, will take the deposition ofBrent Auer, uponoral examinationbefore an officer authorized by Iaw to administer oaths, commencing February 19, 2004, at the Office of the United States Attorney, 204 South Main Street, South Bend, Indiana 46601, commencing 9:30 a.m., at or at a time and place agreed uponbetweencounsel for the parties, and continuing from day to day m~til completed.

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PETER D. I~ISLER Assistant Attorney General

DAV]D M. COHEN Director

.

OF COUNSEL: MARTHA CROSLAND JANE K. TAYLOR Office of General Counsel U.S. Departmentof Ener~c~ 1000 Independence Ave., S.W. Washington, D.C. 20585 JOHN C. EICMAN HEI~DE L. HERR_MANN MARIAN E. S~LIVAN Trial Attomeys ConmaercialLitigation Branch Civil Division Departmentof Justice Washington, D.C. 20530 February 17, 2004

HAROLD LESTER, YR. D. ~~. Assistant Director Con~nercial Litigation Branch Civil Division Departmentof Justice Attn: Classification Unit 8th Floor 1100 L Street, N.W. Washington, D.C. 20530 Tele: (202) 307-6288 Fax: (202) 307-2503

ATTORNEYS FOR DEFENDANT

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Civil Division

PDK:DMC:HDL:MESulIivan 154-98-614

Telephone: (202) 307-6288
WashingKon , D.C. 20530

September VIA FACSIMILE 9_ND UNITED STATES MAIL

17,

2004

M. Stanford Blanton Balch & Bingham LLP 1710 Sixth Avenue North Birmingham, Alabama 35203 Re: Southern Fed. CI. Blanton: Nuclear Operating No. 98-614C Co. v. United States,

Dear

Mr.

Enclosed please find the Government's first set of requests for productioh of documents related to damages. This set of requests is not intended to encompass documents that may be requested in connection with the audit ordered by Senior Judge Merow. We are in the process of examining the binders provided to us on August 31, 2004, which appear to contain documents supporting Southern Nuclear's damages claim. We will contact you to discuss the manner in which we wish to proceed with the audit upon completion of that examination. We have had a chance to review Southern Nuclear's interrogatories, served by facsimile and Federal Express on August 31, 2004. Pursuant to RCFC 33(a), Southern Nuclear may only propound 25 interrogatories, including discrete subparts, without leave of the Court. The interrogatories you served are well in excess of those limits, totaling approximately 90 interrogatories and discrete subparts. In an effort to accommodate your requests and with an eye toward avoiding a potential discovery dispute, we will not object to any specific interrogatory - and refuse to answer that interrogatory - upon the grounds that the limits

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- 2 of RCFC 33(a) have been exceeded. We will undertake this effort with the understanding that Southern Nuclear will not object on this basis if the Government propounds a similar number of interrogatories. If Southern Nuclear does not agree to this approach, please advise me as soon as possible as to which of the current interrogatories Southern Nuclear seeks responses within the limits of RCFC 33(a). In addition, we likely will object any additional interrogatories that Southern Nuclear may serve based upon the limitations set forth in the rules. Please also note that the Government's time to respond to these interrogatories runs from September I, 2004, the date upon which the Court ordered fact discovery to begin, rather than August 31, 20.04, the date that they were served. If you 307-0365. have any questions, please contact me at (202)

Sincerely,

~L~_RI~_N E. SULLIVAN Trial Attorney Commercial Litigation Enclosure

Branch

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U.S. Department of Justice Civil Division PDK: DMC: HDL:MESullivan 154-98-614 Telephone: (202) 307-6288
Washington, D.C. 20530

October VIA FEDERAL EXPRESS

29,

2004

M. Stanford Blanton Balch & Bingham LLP 1710 Sixth Avenue North Birmingham, Alabama 35203 Re: Southern Fed. CI. Blanton: Nuclear Operating No. 98-614C Co. v. United States,

Dear

Mr.

Pursuant to our telephone conference yesterday, the Government provides its audit requests relating to the claim that Southern Nuclear provided to the Government on August 31, 2004. The other matters that we discussed during our call will be the subject of another forthcoming letter. As we indicated during our telephone Conference

yesterday, each request is tied to a specific dollar amount contained within Southern Nuclear's claim and seeks the support for that claim amount in the form of invoices, checks, contracts, and other supporting documentation. The bulk of the audit requests seek support for costs of between $5,000 and $25,0000, costs which Southern Nuclear seeks as damages, but for which we largely have found no support. Pursuant to Mr. Schechter's request, we asked our auditors to determine the total amount of Southern Nuclear's claim that is attributable to charges of between $5,000 and $25,000. Southern Nuclear's claims submitted on August 31, 2004, total almost $112 million. According to our auditors' quick analysis, the charges for amounts between $5,000 and $25,000 account for approximately $24.4 million or 22 percent of Southern Nuclear's claim.

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-2As you will see, these requests are organized by facility (Hatch, Farley, and Voghtle). In addition, our auditors have prepared a separate set of requests for Southern Nuclear's claims for the costs of Private Fuel Storage. I am providing you with both paper and electronic copies of these requests. Pursuant to your request, I am providing an electronic copy to Mr. Schecter. The Government requests that we be provided with the supporting information identified on each request or be informed that the requested supporting documentation does not exist. We would appreciate receiving this information on a rolling basis so that our auditors may continue the audit process, but ask that all of the requested information be provided by December i, 2004. As we stated during our call, we propose that we speak again next week after you have had a chance to review these requests. John Ekman will contact you to schedule this call. In addition, we can also arrange for our auditors to speak with the personnel who will be gathering the information to explain the requests or answer any other questions that may arise. Please questions. contact me at (202) 307-0365, if you have any

Sincerely,

MARIAN E. SULLIVAN Trial Attorney Commercial Litigation cc: (via courier)

Branch

Ronald A. Schechter Arnold & Porter 555 12th Street, N.W. Washington D.C. 20004-1206

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BALCH & BINGHAM LLP
Alabama Georgia Mim~ippiWashington, * ¯ * DC

Attome~,saMCounselors 1710SLxthAvenue North P.O. Box306 (35201-0306) Birmingham,AL35203-2015 (205) 251-8100 (205) 226-8798 Fax www,bMch.com (205)488-5879 (direct f~x) [email protected]

M.Stanford Blamon (205)226-3417 November5, 2004

BY FEDERAL EXPRESS Ms. MarianE. Sullivan, Esq. Department Justice of CommercialLitigation Branch Civil Division 1100 L Street, N.W. Washington, D.C. 20530 Southern Nuclear Operating Co., Inc. v. United States Court of Federal Claims Case No. 98-614C Dear Marian: In your requests for production dated September17, 2004, you sought various documents relating to Southern Nuclear's damagesin the above-referenced case. OnOctober 20, 2004, we provided you with responses to your requests for production and stated that we would subsequently provide the requested documentson CDs. Please find enclosed five CDs. Three of the CDscontain .tif files of the documentsrequested, one CDcontains RW-859s,and one CD contains .cal files (drawingsrelating to plant modifications). If you need assistance in accessing these files, please call K.C. Hairston with myoffice at (205) 226-3435. If wecan be of any further assistance, please do not hesitate to call.

MSB:dc Enclosures

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BALCH & B[NGHAM LLP

1710 Sixth Avenue North EO. Box306 (35201~0306) Birmingham,AL35203-2015 (205) 251-8100 (205) 226-8798 www.balch.com (205)488-5879 (direct fax) [email protected]

M. Stanford Blanton (205) 226-3417

November22, 2004

BY FEDERAL EXPRESS MarianE. Sullivan, Esq. CommercialLitigation Branch Civil Division United States Department Justice of At-m:Classification Unit 8th Floor 1100 L Street, N.W. Washington, D.C. 20530
Re:

Southern Nuclear Operating Company,Inc. v. United States Courtof Federal Claims -- Case No. 98-614C Supplementto Initial Disclosures on Damages

Dear Ms. Sullivan: In accordance with the Court's Orders of November 2002, April, 7, 2002, and June 21, 8, 2004, Southern Nuclear Operating Company("SNC"), Alabama Power Company ("APC"), Georgia PowerCompany ("GPC') (collectively "Southern") hereby serve a supplement to their initial disclosures pursuant to Rule 26(a)(1)(C) of the Court of Federal ClaimsRules ("RCFC"). Enclosed herewith are: (1) a binder entitled "Plant Hatch January - August2004 Costs;" (2) binder entitled "Plant Hatch - Meals and Travel, Supplies and Miscellaneous Costs;" and (3) binder entitled "January - August 2004: Farley - Dry Storage." These three binders and a CD containing images of the contents of the binders in Summationformat are enclosed. For instructions on howto locate the informationin the binders, please refer to the cover letter and the instructions wesent to you on August31, 2004. As noted in the August31, 2004cover letter, our first productionof initial disclosures on damages did not include damages that were incurred subsequent to December 31, 2003. Therefore, two of the three binders enclosed contain the information relating to damages incurred after January 1, 2004 and through August31, 2004. The third binder relates to past costs for meals, travel, supplies and miscellaneous costs related to the Plant Hatchdry storage project. In addition, we are enclosing a CDthat contains supplemental documents to our coordinated discovery production and the related supplementalprivilege log.

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Case 1:98-cv-00614-JFM :BALCH & BINGHAM LLP MarianE. Sullivan, Esq. November22, 2004 Page 2

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Donot hesitate to call if youhavequestions.

Counsel for Southern Nuclear Operating Company, Alabama Power Company,and Georgia Power Company MSB:KCH/rb Enclosures cc: Ronald A. Schechter Jeffrey L. Handwerker

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U.S. Department of Justice Civil Division PDK : DMC : HDL : JEkman 154-98-614 Telephone : (202) 353-0897
Washington, D.C. 20530

February VIA FACSIMILE AND UNITED STATES MAIL

28,

2OO5

M. Stanford Blanton Balch & Bingham LLP 1710 Sixth Avenue North Birmingham, Alabama 35203 Re: Southern Fed. CI. Blanton: are writing concerning the scheduling of the remaining Nuclear Operating No. 98-614C Co. v. United States,

Dear

Mr. We

fact

depositions

of Southern

Nuc!ear's

employees.

As you know, we scheduled the depositions of Mssrs. Fennel and Berryhill the week of January 31, 2004. However, a health issue arose with Mr. Fennel that prevented his deposition from proceeding as scheduled. Likewise, Mr. Berryhill's deposition was set to proceed on February 22, 2004. Unfortunately, Mr. Berryhill's deposition did not proceed on that date, as the attorney taking that deposition fell ill and was not able to travel. We certainly appreciated your understanding in agreeing to reschedule Mr. Berryhill's deposition. In any event, we are interested in obtaining dates which Mssrs. Berryhill and Fennel will be available for depositions. Given the dates we proposed for your Rule 30(b) (6) deposition, the weeks of March 14 or 21 may be best alternatives for these two depositions. upon their

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-2Additionally, we need to schedule the depositions of Mssrs. Wade, Pittman, and McCallum, each of whom made significant contributions to the expert damages model prepared by the Kenrich Group. We will contact you in the next few weeks to discuss the scheduling of those depositions. We still have a significant amount of work to complete - resulting from the scope of modifications to the damages claim, and the significant involvement of each witness in that claim - in order to effectively depose these three witnesses. If you have any questions, please do not hesitate the

to call.

Trial A~t_orney ~ Commercial Litigation Branch

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Atmme~ Counselors and 1710 Sixth Avenue North

BALCH & BINGHAM LLP

Bi~in~, ~ 35203-201~ (205) ~51-81~ (205) 226-8798 ~.bal~.eom (205) 488-5879 (direct fax) sblanton@baleh,cam

M. Stanford Blanton (205) 226-3417

January 26, 2005

BY FACSIMILE ANDU.S. MAIL John C. Ekman Trial Attorney U.S. Departmentof Justice Civil Division Commercial Litigation 1100 L. Street N.W. Washington, D.C. 20530 SouthernNuclear OperatingCo., Inc. v. U. Court of Federal Claims Case No. 98-614C Dear John: Enclosed are Southem's Notices of Deposition for Cl~stopher Kouts and David Zabransky. These depositions are scheduled for February 21, 2005, at Arnold & Porter in Washington, D.C. Please let us know alternate dates are necessary. if Please call mewith any questions.

MSB:Ic Encl.

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