BERKLEY PRESSES FOR TIMETABLE ON RESPONSE TO QUESTIONS SWIRLING AROUND $100 MILLION NO-BID CONTRACT FOR YUCCA MOUNTAIN LAW FIRM

Justice Department Seeking Info on Choice of Morgan Lewis for Work to Open Proposed Nuke Dump 90 Minutes from Las Vegas

(Washington D.C. – July 2, 2008) Congresswoman Shelley Berkley (D-NV) is calling on the Department of Justice (DOJ) to set a timetable for resolving issues regarding a conflict of interest arising from a no-bid $100 million contract awarded to law firm Morgan Lewis for work on the proposed Yucca Mountain nuclear waste dump 90 minutes outside Las Vegas. Berkley and members of the Nevada Congressional delegation continue to raise questions about the firm’s work for the Department of Energy (DOE) to license Yucca Mountain even as its lawyers seek to collect billions of dollars in liability costs from U.S. taxpayers on behalf of the nuclear industry.

“This is a $100 million no-bid contract awarded to a firm that is suing U.S. taxpayers on behalf of the nuclear industry for billions in liability costs, while also collecting record sums to help turn Nevada into a nuclear waste dump. The liability issues raised by this troubling contract demand immediate attention and I would expect those involved would not drag their feet in providing answers about the selection of Morgan Lewis by DOE,” said Berkley.

“The Justice Department has recognized the red flags raised by this clear conflict of interest and has ordered Morgan Lewis to supply critical information relating to the no-bid contract awarded to the firm by DOE. I continue to be amazed at the failure on the part of DOE to consult with the Justice Department before awarding this $100 million no-bid contract and I share DOJ’s concerns about how this could impact efforts to shield U.S. taxpayers from billions of dollars in potential liability costs,” said Berkley. “The Justice Department should set a firm deadline for information to be supplied by Morgan Lewis and greater scrutiny should be applied to DOE’s choice to give this lucrative contract to a law firm with a blatant conflict of interest, even when another choice was available.”

In a letter to the Department of Energy (DOE) Inspector General dated June 16, the Justice Department civil division outlined concerns that the choice of Morgan Lewis could impact the outcome of liability suits, leaving taxpayers facing billions of dollars in potential liability. Despite the firm’s well known conflict of interest, DOE failed to inform the Justice Department about the situation. DOJ has also questioned DOE’s authority to waive conflicts involving Morgan Lewis as they relate to the nuclear industry suits. Morgan Lewis has been ordered by DOJ to supply information regarding mitigation plans for addressing the conflict of interest. As of today, the firm has yet to provide DOJ with a response and the Department has established no timetable for completing its review.

A scathing report released this past April by the Energy Department’s own internal watchdog -- the Inspector General -- also found that DOE did not act in the public's best interest when it knowingly hired a law firm with clear conflicts of interest to help license the Yucca Mountain Project. The $100 million no-bid contract was awarded to Morgan Lewis despite the fact it also represents major utilities in lawsuits against the DOE.

In its report the Inspector General expressed concern that DOE lowered its own internal standards to allow the Department to award the contract to Morgan Lewis. The report also found that DOE failed to document how it justified loosening pervious standards that would have prevented the contract from being awarded to a firm with a known conflict of interest.