CONTACTS 
0201 - Dep Natrl Rscrs & Consvn           406 444 6699 fax 0533
020101 - Ms. Sarah Ann Bond, Esquire
020102 - Department Counsel =406 444 6660; Legal Division

SUBJECTS
Voith Contract Closeout
Engineering Management,
SDS as part of job record
Legal outside counsel
Termination

0907 -    ..
0908 - Summary/Objective
0909 -
090901 - Discussed Welch reporting procedures, use of outside counsel and
090902 - obtaining written opinions from experts and counsel to support DNRC
090903 - management.
090904 -
090905 - Received drafts of notices DNRC proposes to give Tudor with respect
090906 - to termination, ref DIT 1 and 2.
090907 -
090908 -
090909 -
0910 -
0911 -
0912 - Welch Reporting Procedures
0913 -
091301 - I indicated my concern about being constrained in making recommenda-
091302 - tions to DNRC because it may be viewed as detrimental to DNRC, includ-
091303 - ing the recommendation for DNRC to consult with a legal specialist in
091304 - contracts and to obtain written opinions from its experts and legal
091305 - advisors to support its decision making.
091306 -
091307 - I pointed out that since I am working under the Legal Division, my
091308 - recommendations may not be discoverable, but I do not want to place
091309 - the Department in the position of receiving written recommendations it
091310 - feels are not helpful or may be based on erroneous reasoning and
091311 - information, and for that reason I did not raise the matter of
091312 - consulting outside counsel in the meeting today with Walt and Wayne,
091313 - per ref SDS 5.
091314 -
091315 - Sarah said she appreciates my recommendations and wants to continue to
091316 - receive ideas and recommendations, even though the Department may not
091317 - agree with them.
091318 -
091319 - I suggested she should comment on the SDS information submitted so the
091320 - record can be amended to show only accurate and germain information.
091321 -
091322 -
0914 -
0915 -
0916 - Outside counsel
0917 -
091701 - I strongly recommended that DNRC consult outside counsel in connection
091702 - with firing Voith and Tudor for the reasons given previously, ref SDS
091703 - 5 and 6 and DIP 6 and 7, and discussed further below.  I mentioned my
091704 - discussion with Dario ref SDS 10, and that he recommends Dave B. as
091705 - having significant hydro litigation experience.
091706 -
091707 - Sarah asked me to discuss the matter with Dave and that if there is
091708 - not a conflict, we could have a conference call on it tomorrow.  She
091709 - explained there are stringent procedures for the State to hire outside
091710 - counsel, but that she has discussed this matter with other attorneys,
091711 - including Peter Lamb, and DNRC has consulted with the Hainline
091712 - Company.
091713 -
091714 -
0918 -
0919 -
0920 - DNRC Liability
0921 -
092101 - What are the legal implications of firing the Engineer and the con-
092102 - tractor and continuing to run a plant on which serious vibration prob-
092103 - lems exist and where the Owner has lost faith in the representations
092104 - of the designer and builder.  Should DNRC shut down the plant, or what
092105 - grounds does DNRC have that the plant is okay.
092106 -
092107 -    Well Voith has said it is okay to run it.
092108 -
092109 -    Is it responsible to accept their advice to run the plant when the
092110 -    record indicates its representations have proven incorrect?
092111 -
092112 -    DNRC still has not done the structural evaluations.  My general
092113 -    understanding is that reports are coming in that the vibration
092114 -    problem is worsening.
092115 -
092116 -    If someone is injured or if additional significant damage occurs,
092117 -    who will be liable once the engineer and contractor are fired.
092118 -
092119 -    Should the plant be shut down until some other responsible expert
092120 -    says it is safe to run.
092121 -
092122 -    Should DNRC's insurance carrier be notified?
092123 -
092124 -    What is the status of the monitoring system being installed?  Does
092125 -    that operation stand down when Voith is fired?  Evidentally so. If
092126 -    it is at least installed, who gets the monitoring data and advises
092127 -    DNRC on the implications of it?
092128 -
092129 -
092130 - Where is the support for the technical grounds to show the speed
092131 - increaser is defective?
092132 -
092133 -    Sarah indicated Geartech is submitting a written report of its
092134 -    conclusions today.
092135 -
092136 -
0922 -

SUBJECTS
Vacation plans
Travel

1005 - Discussion
1006 -
100601 - We talked about holiday schedules.  Sarah will be out from about Dec
100602 - 21 to Jan 3.
100603 -
100604 - I indicated I would be in SF for that period as well.
100605 -
100606 -
100607 -
1007 -