AO 99-007

April 1, 1999

Mr. Walter B. Sturgeon

Executive Director

Low-Level Radioactive Waste

Management Authority

116 West Jones Street

Raleigh, North Carolina 27603

Dear Mr. Sturgeon:

We are pleased to respond to your letter dated 3/31/99 regarding the Authority's consideration of a "Decay-in-Storage" (DIS) technology.

In our evaluation letters for Mr. Mike Jones and Mr. Mike Ruhe, we indicated that both had potential conflicts of interest as a result of their employment by CP&L and Duke Power, respectively. We very much appreciate that the Authority has paid attention to the ethical obligations of Public Officials.

Question: Do Mr. Jones and Mr. Ruhe have either a conflict of interest or the appearance of a conflict; and to what extent may they participate in any upcoming Authority meeting dealing with the DIS issue?

Facts: The DIS proposal would not solely benefit CP&L or Duke Power individually, but would rather have industry-wide (if not generator-wide) application. Both power companies are on record seriously questioning DIS as an alternative to the traditional permanent disposal facility the authority has pursued since its inception.

Response: We recognize that members of the Authority shall include persons with technical and legal expertise in low-level radioactive waste management. Mr. Jones and Mr. Ruhe appear to be such members. As such, it is our opinion that they should be able to discuss the DIS proposal and answer questions the other members may have as well as questions from the public in attendance. However, under Executive Order 127, Public Officials shall perform their official duties in a manner to promote the best interests of the public. Since it could be perceived that Mr. Jones and Mr. Ruhe are serving their employer's interests, we advise that they should not vote on the proposal.

Please let us know if we can be of further assistance.

Sincerely,

George F. Bason, Chairman