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Copyright 1999 The New York Times Company  
The New York Times

October 6, 1999, Wednesday, Late Edition - Final

SECTION: Section A; Page 18; Column 2; National Desk 

LENGTH: 673 words

HEADLINE: Legal Dispute Could Further Delay Nuclear Waste Plan

BYLINE:  By MATTHEW L. WALD 

DATELINE: WASHINGTON, Oct. 5

BODY:
The Energy Department's plan to bury thousands of tons of high-level nuclear waste at Yucca Mountain in Nevada faces a new complication, a charge that the law firm it has chosen to shepherd the project through regulatory approval has a conflict of interest.

Last month the department awarded a $16 million contract for an estimated 38,900 hours of legal work, gigantic by legal standards, to the Washington office of Winston & Strawn. The job may prove far larger because opposition to the project, in the desert 100 miles from Las Vegas, is strong and well-financed. The legal work includes reviewing the license application that the Energy Department will submit to the Nuclear Regulatory Commission, the agency selected by Congress to rule on the site's suitability, and then representing the Energy Department through the hearings that are certain to follow.

But in a complaint filed on Monday, a competitor for the contract argued that Winston & Strawn could not perform an independent review of the application because the firm had helped prepare it.

The application was prepared for the Energy Department by an engineering contractor, TRW Environmental Safety Services Inc., which dug the exploratory tunnel at the site and has performed analytical work. But TRW hired Winston & Strawn to make sure the application addressed all the legal points required by the Nuclear Regulatory Commission.

"Under both Department of Energy and Nuclear Regulatory Commission quality assurance requirements, the Energy Department needs to conduct an independent review of a contractor's work before it can apply for a license, and that would include the legal work," said Michael F. McBride, a lawyer with LeBoeuf, Lamb, Green & MacRae, the firm that bid unsuccessfully for the work. "Winston & Strawn can't review their own draft application, or any advice they've given TRW about what work should or should not be performed or how it should be performed," Mr. McBride said.

An affidavit filed on behalf of the LeBoeuf firm by R. Tenney Johnson, a former general counsel of the Energy Department, complained that "a situation has been created in which an entity will pass in judgment on its own work."

"Even assuming Winston & Strawn assigns different attorneys to review the Yucca Mountain license application for D.O.E., they would not possess the requisite independence to critique the firm's prior professional work for TRW," Mr. Johnson wrote.

When the application is submitted, scheduled for March 2002, it will total thousands of pages.

The dispute might delay the proceedings, although other problems that have already set it back years could cause further delay. But Winston & Strawn's role could complicate the review if it adds the issue of whether the Energy Department followed the proper procedure.

The Nuclear Regulatory Commission will eventually decide whether the Yucca Mountain project meets its requirements and those of the Environmental Protection Agency. Congress ordered the commission to decide the issue within three years of the time the Energy Department applies for the license, although some experts think it will take longer to hear and weigh all the arguments.

The waste, mostly spent fuel from civilian power plants, is collecting at those reactors and is the subject of a separate dispute between the Energy Department and the utilities, because the department was supposed to take delivery of the fuel beginning in January 1998.

At Winston & Strawn's Chicago headquarters, a spokeswoman referred all questions to the Energy Department. The Energy Department, in a written response to questions, said it had not reviewed the protest, but would respond by Nov. 4. Asked what work Winston & Strawn had done on the application, the department said that TRW "has been utilizing the legal services of Winston & Strawn, through a subcontract arrangement," but did not say what the firm actually did. A spokesman for TRW promised to answer that question today but had not by the end of the day.  http://www.nytimes.com

LOAD-DATE: October 6, 1999




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