Memorandum
DATE: October 14, 1997
TO: CIC Commissioners
FROM: F. Gregory Hayden, Ph.D.
Nebraska CommissionerRE: FIDUCIARY RESPONSIBILITY AND MORATORIUM
cc: Distribution
Someday, we are going to be asked:
What did you know?
When did you know it?
As Commissioners, we now know that:
1. The license application is technically flawed. In it, we find:
a) Different numbers for the same thing in different places in the application.
b) There is no analysis of alternatives.
c) There is no benefit-cost analysis.
d) There is a misrepresentation of the use of the Delphi technique for the generation of information.
e) There is a perfectly inelastic demand schedule for waste disposal in the application, and we know that is inconsistent with reality.
2. The developer is in a destitute financial condition. Therefore, the developer does not meet the financial capability requirements specified in the rules and regulations.
3. There are wetlands on the premises.
4. The waste stream has fallen to a point that the current facility plan does not fit reality.
5. There is a record of bad faith toward the host state - even to the point of paying attorneys to research ways:
a) To target a strategy against Nebraska's Governor.
b) To develop ten ways to attack Nebraska.
c) To exclude Nebraska's Commissioner from meetings.
d) To deny Nebraska the right to protect its borders with the veto vote that was promised.
6. We have a contract with the developer that has led to exorbitant costs.
7. The facility site was selected without analysis.
8. There are tens of millions of dollars in unreported expenses.
9. An alternative site has not been identified.
10. The project is not economically or financially viable. The projected cost for operation of the facility is conservatively estimated to be greater than $18,500 per cubic foot, while national studies indicate that costs greater than $250 per cubic foot are too high for viability.
When should we reasonably have known that the facility would not be viable? The answer is:
Some time ago.
When did we know it was not viable? The answer is:
Some time ago.
When should we reasonably have known the facility was not licensable? The answer is:
Some time ago.
We know these things now. Therefore, the CIC Commissioners have a fiduciary responsibility to stop the waste of resources now. It is time for a moratorium. To continue spending resources on a project that is not viable is not responsible action.