Nebraska Public Power District v. United States

73 Fed. Cl. 650, 64 ERC (BNA) 1074, 2006 U.S. Claims LEXIS 323, 2006 WL 3093972
CourtUnited States Court of Federal Claims
DecidedOctober 31, 2006
DocketNo. 01-116C
StatusPublished
Cited by8 cases

This text of 73 Fed. Cl. 650 (Nebraska Public Power District v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nebraska Public Power District v. United States, 73 Fed. Cl. 650, 64 ERC (BNA) 1074, 2006 U.S. Claims LEXIS 323, 2006 WL 3093972 (uscfc 2006).

Opinion

OPINION and ORDER

ALLEGRA, Judge.

At issue is whether a writ of mandamus issued by the United States Court of Appeals for the District of Columbia Circuit in Northern States Power Co. v. Department of Energy, 128 F.3d 754 (D.C.Cir.1997), precludes defendant from presenting a particular defense to plaintiffs claims in this case, which involves a contract for the retrieval and storage of spent nuclear fuel.

Resolution of this issue poses vexing choices — between the finality of court orders and their validity, between judicial economy and deciding eases on the merits, and between comity and judicial restraint and maintaining the integrity of this court’s jurisdiction. That resolution necessarily occurs against the backdrop of the Federal Circuit’s decision in Christopher Village, L.P. v. United States, 360 F.3d 1319 (Fed.Cir.2004), cert. denied, 543 U.S. 1146, 125 S.Ct. 1296, 161 L.Ed.2d 106 (2005). There, that court held that if, owing to the absence of a waiver of sovereign immunity, another court lacked jurisdiction over a suit in which it issued a [652]*652judgment, that decision would not have preclusive effect in this court under the doctrine of res judicata. In many ways, this case presents a variation on Christopher Village, to wit, whether the preclusive effect denied there may be effectively obtained if a court, assertedly operating without a waiver of sovereign immunity, issues a mandamus writ barring the parties from raising particular arguments before this court. For the reasons that follow, this court concludes that the writ issued by the D.C. Circuit does not have this preclusive effect inasmuch as it is void.

I. BACKGROUND

Nebraska Public Power District (plaintiff or NPPD) is a public electric utility company operating as a political subdivision of the Nebraska state government. It uses a variety of conventional fuels, such as coal and steam, to produce electricity for its customers, and also owns and operates the Cooper Nuclear Station, which produces electricity through nuclear fission. As a byproduct of its operations, the Cooper Nuclear Station produces spent nuclear fuel which is currently stored at the plant site.

On June 24, 1983, the United States Department of Energy (DOE) and NPPD entered into a contract, pursuant to the Nuclear Waste Policy Act of 1982 (NWPA), Pub.L. No. 97-425, 96 Stat. 2201 (1982), providing that DOE would remove and dispose of NPPD’s spent nuclear fuel no later than January 31, 1998. In return, NPPD agreed to fund the disposal by paying statutory fees into the Nuclear Waste Fund (the Fund). Defendant acknowledges that it has not yet removed or disposed of any nuclear waste, other than from foreign sources; plaintiff alleges that, by 2001, it had paid approximately $110 million into the Fund and that it continues to pay approximately $5.5 million annually into the Fund.

On March 2, 2001, NPPD filed a complaint in this court seeking damages for DOE’s alleged partial breach of contract, breach of the implied covenant of good faith and fair dealing, and an uncompensated taking. Pri- or to this case being transferred to the undersigned, the parties filed a number of dis-positive motions, presenting issues involving liability and damages. As will be seen, the liability determination in this ease is impacted by the mandamus issued by the D.C. Circuit in Northern States. To place the mandamus in its proper factual and legal context requires a brief overview of the relevant statutes and regulations, as well as the decisions leading up to its issuance.

A.

The NWPA establishes a comprehensive framework for disposing of high-level radioactive waste and spent nuclear fuel (collectively referred to hereinafter as “SNF”), generated by commercial nuclear power reactors. See Maine Yankee Atomic Power Co. v. United States, 225 F.3d 1336, 1337 (Fed.Cir.2000). Pursuant to the NWPA, DOE’s Office of Civilian Radioactive Waste Management is responsible for “the siting, construction, and operation of repositories” designed to store permanently and safely SNF. 42 U.S.C. § 10131(b)(1). The owners and generators of SNF bear the costs of this monumental task by paying a variety of fees into the Fund, which is used exclusively to fund DOE’s waste disposal activities. 42 U.S.C. §§ 10222(c), (d); see also 59 Fed.Reg. 27,007, 27,008 (May 25, 1994).

In order to manage the SNF disposal process, the NWPA authorizes DOE to enter into contracts with the owners and generators of SNF under which DOE will take title and possession of the SNF and ensure its safe disposal. 42 U.S.C. § 10222(a). The statute states that all such contracts “shall provide that” the DOE will dispose of the SNF involved “beginning not later than January 31, 1998.” Id. at § 10222(a)(5)(B). Pursuant to its rulemaking authority under the NWPA, see 48 Fed.Reg. 5458 (Feb. 4, 1983), the DOE promulgated a “Standard Contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste” (the Standard Contract), 10 C.F.R. § 961.11 (1983), as well as associated fee schedules, 10 C.F.R. § 961.11, Art. VIII; see also 10 C.F.R. §§ 170.1 et seq, 171.1 et seq.1 In [653]*653accordance with 42 U.S.C. § 10222(a)(5), Article II of the Standard Contract provides that “[t]he services to be provided by DOE under this contract shall begin, after commencement of facility operations, not later than January 31, 1998, and shall continue until such time as all spent nuclear fuel has been disposed of.”2 10 C.F.R. § 961.11, Art. II. The Standard Contract also specifies in Articles IV.B., V, and VI, criteria and procedures for scheduling DOE’s receipt of SNF, based on the anticipated annual capacity of a disposal facility and giving priority to the oldest discharged spent fuel. See also 10 C.F.R. § 961.11.

Two other clauses in the Standard Contract are relevant herein. Id. at Art. IX. The first clause, dealing with “Unavoidable Delays by Purchaser or DOE,” states that “[n]either the Government nor the Purchaser shall be liable under this contract for damages caused by failure to perform its obligations hereunder, if such failure arises out of causes beyond the control and without the fault or negligence of the party fading to perform.” Id. at Art. IX.A. The second clause, entitled “Avoidable Delays by Purchaser or DOE,” provides that—

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Bluebook (online)
73 Fed. Cl. 650, 64 ERC (BNA) 1074, 2006 U.S. Claims LEXIS 323, 2006 WL 3093972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nebraska-public-power-district-v-united-states-uscfc-2006.