Vol. LXXXIX, No. 2-S n D ail y Thursday, May 3, 1979 Sixteen Pages Ann Arbor, Michigan FREE ISSUE 'U' awaits state reaction to hospital plan By JOHN GOYERI In spite of criticisms of the $254 million plan to replace University Hospital, University officials said they will make no changes in the present plan until they see how state officials react to it at a May 7 meeting. State Public Health officials will keep in mind criticisms of the plan when they question University Hospital planners Monday, according to Thomas Lindsay, chief.of planning and construction of the of the Michigan Department of Public Health 'MD- PH). BUT LINDSAY refused to say.whether state of- ficials would push for a cheaper hospital plan or for a delay in the planning process. Lindsay, said he expected University Hospital planners would bring MDPH officials "up abreast of where they are in view of their experiences with the (regional health planning agency)." Health planners at the regional level have already reviewed and criticized the hospital plans. The Comprehensive Health Planning Council for Southeastern Michigan ( CHPC-SEM), which reviews hospital plans for a seven-county region in- cluding Washtenaw, last month recommended to the MDPH that it disapprove the University's plans. Although CHPC-BEM planners acknowledged the need for a new University Hospital, they objected to the size and cost of the proposed project. THE MEETING Monday between state and local officials marks the beginning of a state level MDPH review of the hospital plans. The University cannot build a new hospital without the approval of the MDPH, which wuld come in the form of a certificate okayed by Dr. Maurice Reizen, director of the MD- PH. See STATE, Page 2 7 oil firms cited for overcharging WASHINGTON (AP) - The gover- nment yesterday accused-seven major oil companies of overcharging their customers nearly $1.7 billion during a 5 -year period and said the money should be refunded. - - The Energy Department proposed - orders to make the oil companies return the alleged crude oil over- charges, either to customers or to the federal treasury. Paul Bloom, special Energy Depar- tment counsel for compliance, said no charges of criminal activity were in- ; ,volved. NOWIF OVERCHARGES are confirmed, the Energy Department wants the AP Photo money refunded directly to customers The Consumer Power Company's Palisades Nuclear Plant in South Haven has whose claims can be identified; over- been shut down indefinitely after a report by a Nuclear Regulatory Commission charged money that cannot be refunded inspector, in which the company confirmed that the emergency core cooling to specific customers may be refunded system might not be able to withstand an earthquake. See story. page :3. Review slows Fermi 2's opening of prices by the companies, or as a last resort through payments to the federal treasury. The companies were accused of violating federal price controls on crude oil, mainly by incorrectly classifying oil into categories that would allow it to be sold at higher prices. lloom said the total of nearly $1.7 billion in overcharges included about $500 million previously alleged as possible overcharges. He said the $500 million is now included in the new en- forcement actions seeking refunds from the companies. HE SAID the proposed orders seek refunds totalling $888,323,889 from Texaco; $577,959,477 from Gulf Oil; $101,618,243 from Standard Oil of California; $42,023,718 from Atlantic Richfield; $29,063,516 from Marathon Oil; $24,139,927 from Standard Oil of In- diana; and $16,969,403 from Standard oil of Ohio. A Marathon Oil spokesman commen- ted that the overcharging allegation was "completely untrue." Spokesman Bill Ryder said his company would "vigorously oppose" any refund order. A spokeswoman for Gulf, Dorothy Brown, said her company "categorically denies it has violated See GOVERNMENT, Page 2 DETROIT (UPI) - Detroit Edison Co. said yesterday a safety review prompted by the Three Mile Island ac- cident could cause up to a year's delay in the opening of its Fermi 2 nuclear power plant near Monroe. The utility said it also has tem- porarily suspended detailed design work on its Greenwood 2 and 3 plants near Port Huroq, which are to contain reactors designed by Babcock & Wilcox, the firm that designed Three Mile Island. BOTH ACTIONS are designed to allow the giant utility to respond to any safety changes recommended by federal officials following the Pen- nsylvania nuclear incident, company officials said. Word of the move came in a presen- tation by William Moose, Edison chairman, to the New York Society of Security Analysts. Fermi 2, located about 50 miles south of Detroit near the Lake Erie shore, originally was scheduled to go into operation in December 1980. IN THE aftermath of the Three Mile Island accident, however, Edison of- ficials ordered: a.review of safety systems at company nuclear plants un- der construction and in the planning stages. The opening of the Fermi 2 plant, which is about 85 per cent completed, now will be delayed into 1981, perhaps as much as into the latter part of the year. "We know now because we've diver- ted much of our senior engineering talent , to this study of our safety systems that there'll be a delay of at least a month," said Dr. Wayne Jens, Edison's manager of engineering and construction. See EDISON, Page 2 New dean selected for School of Music By BETH PERSKY in jazz studies, an interdisciplinary If approved by the Regents at their musicla theater program, a chamber meeting later this month, Paul Boylan music program, and a degree in arts will become the next dean of the School administration. of Music. Boylan would replace current Boylan said that there may be dif- ,dean Allen Britton, who is obligated by ficulties in a "very high-powered mandatory retirement regulations to faculty of artists and scholars who have leave his post by July 1. strong positions," but that it will not be University Vice President for difficult to maintain the high standards Academic Affairs Harold Shapiro, who of the music school "as long as the - announced Boylan's recommendation, faculty maintains national visibility said "the school has made enormous and students are of a very high level." progrss" under Britton's leadership, He added that he believes the school consistently ranking in the top four will increase in prestige, and that "with music school's nationally. a lot of hard work and thought," the h - Boylan said he plans several changes school could become the best in the for the school in the next few years, country. "Virtually every one of the 11B o elan among them a campus-wide program . See HEW, Page 1. . . .new music school dean