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Motion of The State of Nevada to Disqualify The Law Firm of Morgan ...

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3<br />

at 1. "In doing so, the Department accepted a firm with a conflict <strong>of</strong> interest." Id. at 2. DOE’s<br />

position is that it lawfully "waived" and "mitigated" this conflict. Id. <strong>Nevada</strong> disagrees, because<br />

the conflict is not legally waivable, and even were it waivable, DOE has unlawfully failed <strong>to</strong><br />

explain its departure from past determinations it made that <strong>Morgan</strong> Lewis was irreconcilably<br />

conflicted out <strong>of</strong> representing DOE in connection with Yucca Mountain licensing.<br />

III.<br />

Grounds for the <strong>Motion</strong><br />

As noted, <strong>Morgan</strong> Lewis currently represents over one dozen clients on matters involving<br />

DOE’s Standard Contract, including litigation against DOE for breach <strong>of</strong> the Standard Contract.<br />

Id. This Contract, the basic terms <strong>of</strong> which are set forth in section 302 <strong>of</strong> the Nuclear Waste<br />

Policy Act, as amended ("NWPA"), obligates DOE <strong>to</strong> begin accepting commercial spent nuclear<br />

fuel for disposal beginning on or before 1998. 3<br />

<strong>Morgan</strong> Lewis’ disclosure statement describes<br />

these representations as entailing work that is "factually, commercially, and legally related <strong>to</strong> the<br />

Standard Contract for disposal <strong>of</strong> spent nuclear fuel, including litigation." 4<br />

<strong>The</strong> IG Report<br />

concludes that this representation amounts <strong>to</strong> a clear conflict <strong>of</strong> interest with representation now<br />

being undertaken by <strong>Morgan</strong> Lewis for DOE in connection with Yucca licensing. Id.,<br />

Memorandum for the Secretary, at 2, IG Rept. at 4-5. Under sections 113 and 114 <strong>of</strong> the NWPA,<br />

Yucca Mountain is the only site authorized <strong>to</strong> be studied or licensed as a reposi<strong>to</strong>ry for the<br />

disposal <strong>of</strong> commercial spent nuclear fuel. In necessary effect, DOE’s failure <strong>to</strong> apply for and<br />

receive a license from the NRC for a reposi<strong>to</strong>ry at Yucca Mountain is what constitutes the<br />

violation <strong>of</strong> the Standard Contract. <strong>The</strong>refore, <strong>Morgan</strong> Lewis is not only suing one <strong>of</strong> its own<br />

clients (DOE), but it is doing so in a case related <strong>to</strong> and, in fact, inextricably intertwined with, its<br />

3 Section 302(a)(5)(B) <strong>of</strong> the NWPA. <strong>The</strong> Standard Contract is codified at 10 C.F.R. Part 961,<br />

Subpart B.<br />

4 <strong>Morgan</strong> Lewis filed a conflicts <strong>of</strong> interest disclosure statement by letter <strong>to</strong> DOE dated<br />

September 24, 2007, attached as Exhibit B. <strong>The</strong> quote is at pp. 2-3.

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