I cant speak for Keto but you gotta understand that a peace treaty only has value if it benefits both sides. The NLUO has not proven that it has the ability to do anything. The NLUO has not damaged Hydra or any other federation/member that it has dec'd. Actually the NLUO has suffered defeat after defeat and loss after loss.
During the first 'military action' you guys started you cried and begged for us to stop shooting at you, which we did for YOUR sake not ours. Then some of your members sent more decs and made more threats and received a world class beat down once again.
Hydra has not been the aggressor in this situation. Hydra has just responded by flexing our federation muscle a tiny bit. We'd have flexed more if the NLUO would have been able to muster up a lil more threat.
If Hydra or its members signed a peace treaty with the NLUO would be like signing a peace treaty with a house fly. The NLUO is only a minor nuisance with its threats. When it become more than a nuisance, ie dec's other players/feds, it just gets swatted.
The NLUO has committed some grievances that it will eventually have to answer for, some comments and accusations it will have to answer for before there can be any type of peace for the NLUO.