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SECY 96-076

April 11, 1996

Contents	Enclosure
Nuclear Reactor Regulation	A
Nuclear Material Safety and Safeguards	B
Nuclear Regulatory Research	C*
Analysis and Evaluation of Operational Data	D
General Counsel	E*
Administration	F
Information Resources Management	G*
Controller	H*
Personnel	I
Small Business & Civil Rights	J*
Enforcement	K*
State Programs	L
Public Affairs	M
International Programs	N*
Office of the Secretary	O*
Regional Offices	P
Executive Director for Operations	Q*
Congressional Affairs	R
*No input this week

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending April 5, 1996

CE and B&WOG Meeting

DSSA met with the Combustion Engineering and Babcox and Wilcox Owners' Groups on March 27, 1996, to discuss high burnup and control rod concerns and Bulletin 96-01. The staff presented the operating experience that led to the issuance of Bulletin 96-01, the staff concerns, and planned actions. A discussion followed.

Neither group had identified a problem similar to that observed on the two Westinghouse plants. They were very aware of the bulletin and had internal discussions. The CEOG is preparing a survey along the lines of the bulletin. B&WOG said they would consider a survey. DSSA requested that the groups keep us informed of their actions and requested a copy of the survey and/or guidance they send to their members. We requested that we hear about their plans by April 10, 1996.

Stuck Control Rod Events

A meeting was held with Westinghouse and the Westinghouse Owners Group on March 25, 1996, at NRC Headquarters to discuss the root cause investigation of the Wolf Creek incomplete control rod insertion event and related activities. Westinghouse provided background information and an overview of their current activities related to the control rod problem as well as a summary of plant trip information presently available. The Owners Group has established a data base for each plant trip which includes the plant name, control rod insertion data, core burnup distribution of rodded assemblies, fuel assembly ID and type, and thimble tube lot number. A discussion was also held concerning some of the licensee questions on responding to Bulletin 96-01. Westinghouse stated that their on-going action plan will isolate the population of fuel assemblies that may be susceptible to incomplete rod insertion by June 15, 1996, and will determine the root cause of the Wolf Creek incomplete control rod insertions by August 31, 1996.

Maintenance Rule Workshop

NEIsponsored a maintenance rule workshop in Austin, Texas from March 26-28, 1996. The workshop was attended by approximately 225 utility, NSSS vendors, and consultants, and several NRR and Regional staff. The first two days of the workshop were divided into 11 sessions; 3 of which were for presentations by NEI and NRC representatives, and the remainder were breakout sessions. Messrs. Bruce Boger and Richard Correia, NRR/DRCH, gave the NRC presentations. The breakout sessions were held in parallel for the six NSSS reactor types (e.g., GE 3 & 4, Westinghouse 2 & 3 loops). The six groups discussed the NEI framed `talking points' which included various aspects of the Maintenance Rule and the January 1996 version of NUMARC 93-01 Guidelines. The NRC presentations covered past, current and future NRC maintenance rule activities including: regulatory guide and inspection procedure development, inspector training, and baseline and resident inspections. The last morning of the workshop was devoted to discussion of the issues related to maintenance of structures. Three utility (Commonwealth Edison, Duke Power, and Consolidated Edison) representatives made presentations on their existing and planned maintenance programs for the plant structures and civil engineering features. The effects of the NRC staff observations contained in NUREG 1522 were apparent in the utilities' planned programs. NEI's recently developed "Guideline for Monitoring the Condition of Structures at Nuclear Power Plants" was part of the workshop handout. NEI requested the utilities to provide comments on the Guideline. NRC staff will also provide comments on the Guideline.

Meeting with Electric Power Research Institute (EPRI) on On-line Monitoring of Instrumentation and Control (I&C) Systems and Generic I&C System Upgrade Program

During the week of April 1, 1996, staff from the Instrumentation and Controls Branch and its contractor, Lawrence Livermore National Laboratory, met with EPRI and licensee representatives at the EPRI offices in Palo Alto, California to discuss various issues arising from the staff review of the proposed draft EPRI topical report on on-line monitoring of I&C systems. EPRI provided additional information on the on-line monitoring methods and how these methods demonstrate acceptable performance of the I&C systems as required by current plant technical specifications. This information will be incorporated into a revision to the draft topical report. In addition, EPRI provided an overall status and proposed schedule for the three generic I&C upgrade programs (i.e. application specific integrated circuits, dynamic safety systems, and programmable logic controllers) presently underway. The continued participation in these programs by the staff is part of the EPRI and industry planning for their future efforts.

River Bend Station

River Bend/Cajun ASLB Hearing Termination

On January 25, 1996, the Bankruptcy Trustee for Cajun Electric Power Cooperative filed a motion with the ASLB to terminate the hearing on financial assurance for the River Bend Station. By Order dated March 29, 1996, the ASLB granted that motion. The only remaining proceeding in which the NRC is involved and which concerns the River Bend Station is the petition before the United States Court of Appeals, District of Columbia Circuit for review of the Orders which transferred the operation of River Bend to Entergy Operations, Inc. and which reflected the change in ownership of Gulf States Utilities. The basis for the petition is on the compatibility of the merger with the antitrust laws. The NRC and parties will present oral arguments before the Court on May 14, 1996.

Palo Verde Unit 2

Stuck Fuel Assembly A-07

On Tuesday, April 2, 1996, Bill Stewart, Executive Vice President - Nuclear for the Arizona Public Service Company (APS), held a 45-minute news conference at the Palo Verde site to discuss the stuck fuel assembly. An estimated 15-20 reporters attended the briefing. Afterwards, licensee personnel led the press on a tour of the containment. The licensee plans to give the press a daily status update. Dennis Kirsch, a branch chief from the Walnut Creek Field Office, attended the press briefing.

On April 3, 1996, the licensee was putting the integrity straps onto the stuck fuel assembly (A-07). The licensee was using a deep-well socket with a 50-foot pole to tighten the bolts on the top of the fuel assembly. During this operation, the fuel assembly receded to its original position on the core plate. The licensee assessed the situation with underwater cameras and found nothing unusual. The licensee has also taken water and air samples and found no indication of leakage. The assembly continues to be supported so that it will not tip over.

NRC staff met with a licensee representative and members of the public on April 3, 1996, and discussed licensee responses to staff questions regarding procedures for lifting the stuck fuel assembly.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending April 5, 1996

Nuclear Energy Institute Workshop

On March 28-29, 1996, staff from the Division of Industrial and Medical Nuclear Safety and the Spent Fuel Project Office attended an industry workshop hosted by the Nuclear Energy Institute. The purpose of the workshop was to discuss the industry's implementation of, and questions regarding, revisions to the Nuclear Regulatory Commission and Department of Transportation (DOT ) regulations for transportation of radioactive materials, which became effective April 1, 1996. Subjects discussed included the need for additional guidance on shipment of large components, low-specific activity material, surface contaminated objects, and industry concerns regarding DOT's new radiation protection program requirements.

International Policy Forum

On March 20-22, 1996, Division of Fuel Cycle Safety and Safeguards management and staff attended the "International Policy Forum: Management and Disposition of Nuclear Weapons Materials." Forum presentations centered primarily on plutonium disposition alternatives for surplus weapons material and the criteria by which alternative(s) should be selected. The forum included a wide variety of presentations and perspectives, including those of the U.S. and Russian governments, domestic and international utilities, and public interest groups.

Hazard Analysis Updating for Occupational Safety and Health Administration/Environmental Protection Agency

On March 29, 1996, an Office of Nuclear Material Safety and Safeguards staff member attended a workshop course for the chemical industry conducted by the Process Safety Institute (a commercial company), that dealt with compliance with existing Occupational Safety and Health Administration and proposed Environmental Protection Agency requirements to update or revalidate process hazards analyses (PHA) at regulated chemical processing plants every five years. PHA uses systematic techniques to ensure that all scenarios with consequences exceeding specified limits have been identified and controls prescribed. Its methods are the same as those contained in a proposed staff guidance document on performing an integrated safety analysis. The workshop was attended by senior plant safety personnel who had considerable experience performing such analyses.

Public Meeting on Sequoyah Fuels

On March 26, 1996, staff from the Division of Waste Management and Office of the General Counsel conducted a public meeting on the remediation of the Sequoyah Fuels Corporation (SFC) facility. The meeting was conducted in Webbers Falls, Oklahoma. Representatives from the Environmental Protection Agency (EPA), Army Corps of Engineers, Geological Survey, Oklahoma Department of Environmental Quality, Cherokee Nation, Native Americans for a Clean Environment, and members of the public and media attended. The major topics of discussion were site characterization information submitted by the licensee to both the Nuclear Regulatory Commission and EPA, and financial assurance and funding plans to pay for site remediation. This was the third in a series of roundtable meetings to inform the public of decommissioning activities at SFC.

Interagency Steering Committee on Radiation Standards Risk Harmonization Subcommittee Meeting

On March 20, 1996, Nuclear Regulatory Commission staff participated in a meeting of the Interagency Steering Committee on Radiation Standards (ISCORS) Risk Harmonization Subcommittee. During the meeting, Department of Energy staff discussed their concerns regarding inconsistent groundwater regulation at both the State and Federal level. The Subcommittee also discussed conducting a Biological Effects of Ionizing Radiation (BEIR) VII review of the scientific basis for regulating ionizing radiation and concluded that the BEIR VII working group should meet and prepare a draft scope of work for the scoping study for review at the next Subcommittee meeting. The Subcommittee briefly discussed how to make operational the ISCORS recommendations to use realistic modeling and to avoid inappropriate transfer of numerical risk management objectives from one program to another. The next Subcommittee meeting will be April 25, 1996, at the Environmental Protection Agency headquarters.

ENCLOSURE D

Office for Analysis and Evaluation of Operational Data
Items of Interest
Week Ending April 5, 1996

Technical Training Division (TTD)

On April 4, 1996. the Director, Technical Training Division and TTD staff members meet with Mr. Marian Dugovic, Director of the Trnava Training Center in Slovakia and his deputy Mr. Stefan Niznansky at the NRC Technical Training Center. The Slovakians were escorted by representatives of SAIC. TTD staff provided an overview of the NRC technical training program and a tour of the TTC facilities including full scope simulator and Nuclear Engineering Work Station (NEWS) demonstrations. Topics discussed included training of regulatory personnel, training center equipment and facilities, and TTC experience with the upgrading of it's full scope simulator models.

Safety Programs Division (SPD)

AEOD Engineering Evaluation Report, "Motor-Operated Valve Key Failures" (AEOD/E96-01)

AEOD Engineering Evaluation Report, "Motor-Operated Valve Key Failures," (AEOD/E96-01) was issued on March 29, 1996. The study identified a significant number of MOV key failures which involved anti-rotation keys, valve operator-to-valve stem keys, and motor pinion gear keys. Many of the key failures were not detected during surveillance tests but were detected on demand, during valve operations, or during maintenance activities and had existed for some time before they were discovered. These were significant deficiencies and represent a potential common-mode failure mechanism for the associated safety-related systems.

The dominant attributed cause was key loosening associated with setscrew loosening or improper staking. In addition, high impact loads and improper material were also major contributors to motor pinion gear key failures. The replacement of 1018 keys with harder 4140 keys, in some cases, may lead to keyway deformation or damage. This could lead to cracking and failure of the shaft.

Reliability and Risk Assessment Branch (RRAB)

Emergency Diesel Generator Power System Reliability 1987-1993 (INEL-95/0035)

On March 22, 1996, the report on emergency diesel generator reliability was issued. This is the second report in a series which focus on using operational data to determine the reliability of the risk significant systems. Focusing on the plants reporting under Regulatory Guide 1.108, the findings included the following:

• The mean unreliability was 0.044 and was fairly constant over the period from 1987 through 1993, even though the rates of unplanned demands and failures were decreasing;
  
  
• The dominant contributors to the unreliability were maintenance out of service while at power and unrecovered failures to start;
  
  
• The demand reliability was consistent with the station blackout rule;
  
  
• No common cause failures of multiple EDG trains were observed during unplanned demands but some were observed during testing;
  
  
• The unreliability was generally comparable with PRA/IPEs; and
  
  
• The nature of failures during unplanned demands differed somewhat from those discovered during monthly tests, design reviews, and routine inspections.

Contact Tom Wolf at 415-7576 (e-mail: TRW) for additional information.

Incident Response Division (IRD)

Emergency Response Branch (ERB)

Site Area Emergency at NFS

On April 2, 1996 an event at Nuclear Fuel Services (NFS) in Erwin, Tennessee activated the NRC Headquarters Operations Center. At 12:26 pm a Site Area Emergency was declared as a result of a fire in an incinerator duct on the roof of the incinerator building. The fire was extinguished at about 12:30 pm. There were no personnel injuries at the site due to the fire. The NRC entered the monitoring mode at 1:45 PM. Trained NMSS responders reported to the Headquarters Operations Center to support the Regional response activities. The Operations Center remained staffed until the situation at NFS was better understood. By 5 PM, there was no apparent risk to the public health and safety and the event was terminated.

FRPCC Meeting

Representatives from AEOD and NRR participated in the Federal Radiological Preparedness Coordinating Committee (FRPCC) meeting on April 3. The two areas of particular interest to the NRC included the Federal policy on stockpiling KI for the public and the adequacy of Federal plans to respond to nuclear, biological, and chemical (NBC) terrorist incidents.

The FRPCC Subcommittee on KI is convening a public meeting in mid to late May to evaluate new information contained in a KI petition to the NRC and review public comments and associated letters written to FEMA on this subject. With respect to the NBC issue, the NRC presented the comments developed jointly with DOE , EPA and DOD (DNA) on the adequacy of existing plans, namely the Federal Radiological Emergency Response Plan (FRERP), to respond to nuclear terrorist incidents. The NRC proposed and it was agreed to adopt those comments as FRPCC comments. The NRC was requested to coordinate this effort for the FRPCC and submit the comments to the Core Group as FRPCC comments.

Interagency Working Group Meeting

An ERB staff member attended the second Interagency Working Group meeting at FEMA. The purpose of the meeting was to determine whether Executive Order 12656 and National Security Directive 47 are still relevant or whether they should be modified. The IWG meeting is a response to a directive from the Assistant to the President for National Security Affairs to assess the relevance of national security emergency resources preparedness (NSERP) executive orders and directives in light of current conditions and threats.

The Group will meet again and hopes to arrive at a consensus by June, 1996.

Preliminary Notifications

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending April 5, 1996

Significant Requests Received during the 5-Day Period of March 29 - April 4, 1996:

Request for records related to PWN Environmental located in Vista, CA (a Division of ADCO), regarding permits, enforcement actions, consent decrees, notices of violations. (J.Wingard of Dames & Moore; FOIA-96-148)

Request for a copy of the electronic version of NUREG/CR-6385, "Comparison of ANS, ASME, AWS, & NFPA Standards Cited in the NRC Standard Review Plan, NUREG-0800 and Related Documents" (Ophelia Williams; J/R/A Associates; FOIA-96-149)

Request for records related to maintenance rule training provided to the Technical Training Division on February 21, 1996. (Ophelia Williams; J/R/A Associates; FOIA-96-150)

Request for NRC's Annual Report and the most recent SALP report on Diablo Canyon. (Individual; FOIA-96-151)

Comments on District Court Decision for OGC

The Division of Security is providing OGC with comments on a District Court decision that invalidates, on constitutional and privacy grounds, several questions included in the Questionnaire for National Security Positions (SF 86). The court ruled that DOD may not ask employees in national security positions the SF 86 questions related to illegal drug use, financial responsibility, expunged arrests, and mental health. DOJ has asked OGC for comments for an appeal of the court's decision. Allowed to stand, the court's decision will eviscerate the adjudicative process by severely constricting the review of the "whole person" and preclude, in most cases, the collection and verification of information concerning the arrest history, illegal drug use, financial responsibility and mental health counseling.

ENCLOSURE I

Office of Personnel
Items of Interest
Week Ending April 5, 1996

Fitness Center Advisory Council Meets

On March 28, 1996, members of the NRC Fitness Center Advisory Council met with the NRC Project Manager and the Fitness Center Director to discuss the status of the Center, which opened in September 1995. Agenda items included membership (total enrollment - 512); marketing strategies to solicit new members; equipment usage and new requirements; and a presentation by the Director, Roxanne Elliott, on future workshops to be offered. The Project Manager also recognized the efforts of the Advisory Council members and the Fitness Center staff in the success of this endeavor, which has been very favorably received by NRC employees.

ENCLOSURE L

Office of State Programs
Items of Interest
Week Ending April 5, 1996

Women of Color and the Environment Roundtable

Maria Lopez-Otin, Federal Liaison, participated on April 2, 1996 in the Women of Color and the Environment Roundtable sponsored and held at the headquarters of the National Council of Negro Women. Representatives from industry, the constituent communities, and Federal agencies discussed their efforts to implement environmental justice concepts within overall environmental outreach efforts. As an example of these type of partnerships, the Washington Navy Yard is conducting an environmental cleanup effort which involves residents of Anascostia and provides them with computers to enable them to help monitor cleanup activities. Of interest was the recognition that due to budget constraints in both government and the private sector, one has to leverage resources in any activity that is undertaken.

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending April 5, 1996

Media Interest

Region II PAOs have been assisting the Virginian Pilot, in Norfolk, on their story about Virginia Electric & Power Co.

The story focuses on the safety of nuclear power in the wake of Chernobyl's 10-year anniversary.

ENCLOSURE P

Region I
Items of Interest
Week Ending April 5, 1996

Harvard University

The Division of Nuclear Materials Safety held an enforcement conference on April 2, 1996 with Harvard University. The conference was conducted to discuss an apparent failure to secure from unauthorized removal or limit access to licensed materials stored in controlled or unrestricted areas, and six additional violations that were indicative of a management weakness in the oversight of the Radiation Safety Program. The conference provided NRC staff the opportunity to understand more fully the circumstances of the apparent violations and the licensee's actions.

Internal Contamination of Technologist

On March 26, Region I dispatched inspectors to investigate the internal contamination of a student technologist at a Mallinckrodt Medical, Inc. nuclear pharmacy in Wilkes-Barre, Pennsylvania. The inspectors concluded that the contamination was most likely the result of an inadvertent oral intake of less than 3 millicuries 00of ^99mTc. Because the student was working with a generator elution with specific activity of 440 millicuries per milliliter, the volume needed to provide the amount of ^99mTc ingested was a small fraction of a drop. The resulting whole body dose was less than 200 millirems. The student has been examined by a physician, and no health consequences are expected as a result of this event.

Easton Hospital Management Meeting

A management meeting was held on April 4, 1996 at the Region I Office with Easton Hospital. Hospital Administration, the Radiation Safety Committee, the Radiation Safety Officer, the Radiation Physics Consultant, and several authorized users were in attendance. The issues discussed involved the apparent communication problems and potential impact on the implementation of the licensee's radiological safety program. The Hospital's president acknowledged the stated problems, committed to address them expeditiously and implement appropriate action to improve communication, and to ensure that the performance of the radiological safety activities will continue to be of high quality.

Suspension of Materials Licenses of Eastern Testing and Inspection, Inc.

On March 29, 1996, the staff issued an order suspending two licenses held by Eastern Testing and Inspection, Inc., (ETI) of Thorofare, New Jersey. The licenses authorize the use of 1) iridium-192 and cobalt-60 for industrial radiography and 2) portable moisture density gauges. The order requires that: 1) all material be placed in locked storage, 2) all NRC-licensed activities be suspended, 3) no NRC-licensed material be received while the order is in effect, and 4) all records related to licensed activities be maintained in their original form.

An NRC investigation found that ETI deliberately used an employee, with no prior radiography experience, to perform radiography one day after he was hired, even though the individual had not received the required training. NRC inspections found an additional 11 violations of NRC requirements.

Order Modifying Radioactive Materials Licenses of Applied Health Physics, Inc., of Bethel Park, PA

On March 29, 1996, the staff issued an order modifying two licenses issued to Applied Health Physics, Inc., (AHP) of Bethel Park, Pennsylvania. One license authorizes the receipt, possession, and storage of pre-packaged wastes. The other license authorizes the company to perform leak test services, analysis of samples, calibrations of instruments, and fixed gauge services.

The order suspends the licensee's authorization to receive pre-packaged radioactive waste, and requires that the company dispose of radioactive waste in accordance with disposal schedules provided to the NRC. The order further requires that the company establish an escrow account to provide financial assurance for the handling and disposal of radioactive waste.

The NRC order was issued following 1) the licensee filing for bankruptcy protection, 2) a routine safety inspection identifying seven violations, one of which involved holding radioactive waste for more than 180 days, contrary to a license requirement, and 3) AHP taking possession of waste containing unsealed americium-241, which the company is not authorized to handle.

ENCLOSURE P

Region II
Items of Interest
Week Ending April 5, 1996

Nuclear Fuel Services, Inc.

On April 2, 1996, the licensee declared a Site Area Emergency in accordance with its emergency preparedness procedures. The emergency was based upon a fire in the exhaust duct system connected to an incinerator and the ventilation ductwork for the Building 300 complex at the licensee's facility near Erwin, Tennessee. The fire was discovered at approximately noon and extinguished via the use of water by 12:30 p.m. The licensee's fire brigade and local fire departments responded to the event.

The licensee has established an investigation team to review the incident. The NRC dispatched an Augmented Inspection Team to the site on April 2, 1996. The team consists of staff from Region II and the Office of Nuclear Material Safety and Safeguards.

The licensee estimates less than 100 grams of uranium may have been in the incinerator and ductwork which was involved in the fire. Environmental samples to date show normal values and no evidence of uranium release offsite. Bioassays of individuals responding to the fire show no evidence of uranium uptake as a result of the fire.

Region II issued a Confirmatory Action Letter (CAL) to the licensee on April 3, 1996. The CAL confirms that the incinerator and associated equipment will remain shutdown until the investigation is complete, the root cause of the fire is determined and the results reviewed with the NRC.

ENCLOSURE P

Region IV
Items of Interest
Week Ending April 5, 1996

Predecisional Enforcement Conference with Nebraska Public Power District

On April 1, 1996, a predecisional enforcement conference was conducted with representatives of the Nebraska Public Power District (NPPD). The purpose of this public meeting was to discuss apparent violations of NRC requirements involving modifications implemented at the Cooper Nuclear Station as identified in NRC Inspection Reports 50-298/96-04 and 50-298/96-08. NPPD management and staff described the circumstances surrounding the apparent violations and immediate and long-term corrective actions to prevent recurrence.

Entergy Operations, Inc, Management Meeting

The Regional Administrator and the Director, Divison of Reactor Projects III/IV, NRR, along with other members of their staffs, participated in a public meeting with Entergy Operations, Incorporated on April 4, 1996. The meeting was held to discuss various Entergy-wide issues, such as power uprate, on-line maintenance, improved Technical Specifications, self-assessments, and downsizing.

ENCLOSURE R

Office of Congressional Affairs
Items of Interest
Week Ending April 5, 1996

Congress is on a two week spring recess, returning on Monday, April 15.