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SECY-02-0042

March 14, 2002

ENCLOSURE A

Nuclear Energy Institute (NEI) Meeting

On February 27, 2002, the Chief of the Equipment and Human Performance Branch, the Chief of the Operator Licensing and Human Performance Section, three of the four Regional Operator Licensing Branch Chiefs, and selected members of the staff met with representatives of the Nuclear Energy Institute's (NEI's) Initial Licensed Operator Focus Group in a public meeting held at the NEI Offices in Washington, DC. Representatives from each regional facility operator training organization and the Institute of Nuclear Power Operations (INPO) also participated in the meeting. The meeting was convened to continue the dialog among operator licensing program stakeholders and to promote the effective and efficient implementation of Revision 8 of NUREG-1021, "Operator Licensing Examination Standards for Power Reactors." The discussion topics included issues related to the generic fundamentals examination, lessons learned during recent requalification program inspections, and possible enhancements to the initial licensing written examinations and operating tests. Feedback from industry stakeholders on the initial examination process was positive overall.

Reactor Oversight Process

The Inspection Program Branch staff conducted another of a continuing series of public meetings on February 28, 2002, with the NRC/industry working group on the Reactor Oversight Process (ROP). The key issues discussed included: NEI 99-02, "Regulatory Assessment Performance Indicator Guideline," Revision 2, safety system unavailability performance indicator (PI) policy issues; status update of NRC ROP web page changes; recent planned changes to Inspection Manual Chapters and inspection procedures; status of the safety system unavailability (SSU) PI pilot program; radiation protection significance determination process (SDP); draft steam generator tube degradation SDP; and frequently asked questions. In addition, the working group discussed the recent decision not to adopt changes to the scram PI. The proposed changes had been pilot tested in 2001. The working group discussed the feasibility/desirability of reconsidering previous options and any alternative approaches that could be pursued. The working group agreed to address this issue further as an agenda item at the May 2002 meeting.

Calvert Cliffs, Unit 1 - Steam Generator Replacement

On February 17, 2002, Calvert Cliffs, Unit 1 entered refueling outage 15 which will include replacement of the steam generators. The replacement steam generators consist of new lower subassemblies, new steam drum internals, and new feedrings, with the existing steam drum being refurbished and reattached to the subassembly. Access for the replacement steam generators, as well as removal of the old steam generators will be through the equipment hatch. In addition, the licensee inspected the reactor vessel head penetrations in accordance with Bulletin 2001-01. Evaluation of inspection data was completed on March 3, 2002, and no leakage or cracking was found.

Brunsbuettel and Hamaoka Hydrogen Ignitions in Non-Class 1 Piping

The staff is pursuing additional information on the recent apparent hydrogen ignitions at two foreign BWRs (not of GE-design) which led to pipe ruptures in non-Class 1 piping. The staff has contacted the German and Japanese regulators with requests for additional information on these separate events, and expects this information in the near future. This information will be used to determine what, if any, applicability these events may have for domestic BWRs, and if any regulatory action may need to be pursued.

On-Site Review of Vessel Head Inspection at Davis-Besse

One member of the staff visited the site of Davis-Besse during the week of February 25 to review the licensee's activities to inspect the reactor vessel head penetration nozzles, as described in the licensee's response to Bulletin 2001-01. The staff was accompanied by a representative of the Ohio Emergency Management Agency. The staff reviewed videotapes taken during the visual examination of the reactor vessel head, along with the set-up, procedures and initial results from under-the-head ultrasonic inspections of the nozzles.

Subsequent to the staff's on-site review, the licensee used a more robust top-down ultrasonic examination to further investigate a small number of nozzles identified by the under-the-head examination. Initial findings reported to the staff include five nozzles with axial cracking and one nozzle with a short circumferential crack located above the J-groove weld. The licensee stated a plan to repair these five nozzles, and will further evaluate the results from one additional nozzle. The licensee is completing its evaluations of its inspection results and will provide the staff with a summary of its findings by the end of the week. The licensee will complete repairs, as required, prior to restart.

Vessel Head Inspection Results from Millstone Unit 2

During examination of the vessel head penetration (nozzles) at Millstone Unit 2 during its on-going refueling outage, three control element drive mechanism (CEDM) nozzles were identified as requiring repair due to cracking, and one additional nozzle was identified for further inspection. These inspections were implemented by the licensee to fulfill commitments made in response to NRC Bulletin 2001-01. The inspection results indicated that none of the flaws resulted in through-wall leakage of primary water coolant. The licensee will complete repairs, as required, prior to restart.

Proposed Amendment Approved by the Executive Director for Operations

On March 1, 2002, the Executive Director for Operations approved a proposed amendment for publication in the Federal Register to incorporate by reference three regulatory guides listing NRC-approved code cases with alternatives to the requirements of the ASME Boiler and Pressure Vessel Code and the ASME Code for Operation and Maintenance of Nuclear Power Plants by amending 10 CFR 50.55a.

ENCLOSURE B

Staff Presentations at Waste Management 2002 Conference

On February 24-28, 2002, staff from the Division of Waste Management, the Spent Fuel Project Office (SFPO), and the Center for Nuclear Waste Regulatory Analyses attended the Waste Management '02 conference in Tucson, Arizona. Staff presented decommissioning-related papers on the status of the NRC's decommissioning program and NRC's efforts on regulatory approaches for control of solid materials. In the high-level waste area, staff presented papers on the Yucca Mountain rule (10 CFR Part 63), multiple barriers, and implementing performance assessment regulatory criteria. Staff from SFPO also presented a paper on the spent fuel transportation package performance study. More than 2000 scientists, engineers, government officials, academic leaders, and corporate managers attended the conference from national and international companies, agencies, and institutions. Approximately 70 Technical Sessions and several workshops were scheduled over the 4-day event. Over 650 technical papers were presented at the conference. This conference continues to serve as an effective forum to describe NRC's programs and interact with a variety of stakeholders.

Recommendation to Revalidate French Competent Authority Certified Model No. TN-MTR

On March 1, 2002, the Spent Fuel Project Office recommended to the Department of Transportation that the French Competent Authority certified Model No. TN-MTR package be revalidated to allow for transport of MTR research reactor fuel into the U.S. This package supports the Department of Energy's Foreign Fuel Return Program. The package will be used to transport reactor fuel from the RISO Reactor, in Denmark, to the Savannah River Laboratory.

Meeting with Representatives of Inyo County, California

On March 4, 2002, Spent Fuel Project Office staff met with representatives of Inyo County, California, to provide a summary of the status of the ongoing Private Fuel Storage licensing proceeding. With regard to the proposed high-level waste repository at Yucca Mountain, Inyo County is an Affected Unit of Local Government (AULG), pursuant to the Nuclear Waste Policy Act, as amended. It is the only AULG outside of the State of Nevada.

"Unified Version" of Safety Evaluation Report for Proposed Private Fuel Storage Facility Issued

On March 5, 2002, the Spent Fuel Project Office, at the request of the Office of the General Counsel, released a "unified version" of the "Safety Evaluation Report Concerning the Private Fuel Storage Facility" (PFS SER), which incorporated the two supplements to the PFS SER with the chapters that had not changed from the version completed in September 2000. This unified PFS SER was produced for the convenience of the parties to the PFS adjudicatory proceeding before the Atomic Safety and Licensing Board (ASLB). It allows the ASLB to refer to one document, rather than three, during the adjudicatory proceedings, which will include hearings during April and May 2002 in Salt Lake City, Utah. This unified SER contains no new information or analyses.

Meeting of 10 CFR Part 40 Jurisdictional Working Group

On March 6-7, 2002, the 10 CFR Part 40 Jurisdictional Working Group held a meeting to further discuss the best approach to delineate the responsibilities of the NRC and other regulatory agencies regarding source materials with low concentrations of uranium and thorium and their decay products. The meeting was open to the public. The topics under discussion included: (1) staff's analysis of the results of NUREG-1717, "Systematic Radiological Assessment of Exemptions for Source and Byproduct Materials," for those materials applicable to the working group's task; (2) discussion of options with focus on outcomes; and (3) key points for staff recommendations to the Commission. Representatives from the following agencies/organizations participated in the meeting: Organization of Agreement States and the Conference of Radiation Control Program Directors; the Environmental Protection Agency; the U.S. Army Corps of Engineers; the Occupational Safety and Health Administration; and the Department of Interior, Bureau of Land Management. Internally, representatives from the Office of Nuclear Material Safety and Safeguards, the Office of the General Counsel, and the Office of State and Tribal Programs participated.

Proposed Rule Signed by the Executive Director for Operations

On March 4, 2002, the Executive Director for Operations approved a proposed rule which revises 10 CFR Part 72.214," List of approved spent fuel storage casks," revising the NAC International Multi-Purpose Canister (NAC-MPC) cask system listing within the "List of approved spent fuel storage casks." This amendment will allow for modification of the design of the cask system to accommodate a new type of fuel. The NAC-MPC system component modifications include increased length of the fuel basket and canister, transfer cask, and vertical concrete cask. Changes also include a redesigned fuel basket to accommodate 26 fuel assemblies, with an alternate 24-fuel assembly configuration and increased transfer cask radial shielding. The Certificate of Compliance has been revised in its entirety to include a reference to the new type of fuel and a revised format. The Technical Specifications (TS) have also been revised in their entirety to include specifications for the new type of fuel, new operational limits and to incorporate a revised format for the TS.

ENCLOSURE C

Meeting with NASA on PRA computational tools

On February 28, 2002, a meeting was held with NASA at the NRC headquarters for the purpose of identifying and collaborating in the development of probabilistic risk assessment (PRA) computational tools. The NRC has developed and maintains the SAPHIRE (Systems Analysis Programs for Hands-on Analysis Integrated Reliability Evaluations) computer code. NASA has adopted SAPHIRE as its official code for performing PRAs and is committing resources for SAPHIRE training and user support.

SAPHIRE is a tool for conventional PRAs and is being extensively used in many NRC and NASA programs in support of risk-informed activities. However, both the advancement of the state-of-the-art in the use of computers and the expansion of the NRC and NASA use of risk-information in the decision making processes necessitate the examination of improving existing capabilities and potential creation of new tools.

During the meeting SAPHIRE improvements that could potentially be pursued by both agencies were identified. Also, the need for addressing the next generation of PRA computational tools was identified as a topic that should be further pursued as part of NRC/NASA collaborative efforts.

ENCLOSURE D

Federal Radiological Preparedness Coordinating Committee (FRPCC) Meeting

On March 6, 2002, staff from Incident Response Operations (IRO) attended a meeting of the Federal Response Subcommittee of the FRPCC to discuss revision of the Federal Radiological Emergency Response Plan (FRERP). The subcommittee discussed findings from a table top exercise held by the FRPCC on October 4-5, 2001, and how those findings would be addressed in the revision of the FRERP. The subcommittee members agreed to provide written comments regarding concept level changes to the Federal Emergency Management Agency committee co-chair in a week, with a followup meeting for discussion in two weeks. Other topics discussed in the meeting were Federal response resource information systems and asset deployment strategies during emergency event response.

TOPOFF2 Exercise Meeting

On March 6, staff from IRO participated in a government-agency planning meeting for the Top-Officials 2 (TOPOFF2) exercise to be conducted in May 2003. This meeting was the latest in the series of multi-agency planning sessions for TOPOFF2, the second Congressionally- mandated, national-level exercise involving weapons of mass destruction. The meeting was chaired by the Office for Domestic Preparedness within the Department of Justice, the group charged with managing TOPOFF2. The meeting purpose was to provide attendees with an overview and status of the TOPOFF2 planning process and to address the exercise scope, objectives, and level of play by the respective agencies. TOPOFF2 will be preceded by a year-long series of preparatory training seminars and small-scale exercises with increasing complexity.

Preliminary Notifications

1. PNO-II-01-039A, Shaw Pipeline Services, Inc., RECOVERED RADIOGRAPHIC DEVICE.

2. PNO-III-02-005, Nuclear Management Co., LLC (Point Beach Nuclear Plant), LEAKING PROPANE TANK OUTSIDE PROTECTED AREA.

3. PNO-III-02-006, FirstEnergy Corporation (Davis-Besse Nuclear Power Plant), SIGNIFICANT METAL LOSS OBSERVED IN REACTOR VESSEL HEAD.

4. PNO-IV-02-014, St. Bernard's Regional Medical Center, MEDICAL MISADMINISTRATION.

ENCLOSURE F

Re-engineered Federal-Wide Procurement Database

The NRC participated in an interagency forum held by the General Services Administration to discuss the Government's information and operational requirements for a re-engineered federal-wide procurement database. The functional specifications which were presented in this forum were formulated by an interagency group the NRC had participated in earlier. The re-engineered federal-wide procurement database is part of the President's E-Government Initiative, also known as the Quicksilver Initiative. The current federal-wide procurement database, maintained by the General Services Administration, uses forms to collect data about procurement activities and accepts batch input. Procurement information is often not available for analysis for several weeks. The newly designed database will be based on relational database concepts, will allow instantaneous input of procurement activities, and will provide real-time data for analysis of procurement activities.

Award of Contract NRC-21-02-302

On March 6, 2002, DCPM awarded a competitive contract to Caption Reporters, Inc. The objective of this contract is to obtain realtime captioning services. The contract period of performance is March 6, 2002, through August 30, 2002. The total contract amount is $86,400. There are no option periods for this contract.

ENCLOSURE G

ADAMS Steering Group Committee

The ADAMS Steering Group Committee was phased out on March 4, 2002. It was established to provide senior management guidance on implementing the ADAMS Assessment Action Plan. The ADAMS Steering Group made a significant contribution to providing consensus, directional, and policy advice for the ADAMS program. Steering Group members have individually, and collectively as a body, provided the Office of Chief Information Officer and the agency great service in developing a consensus on the direction of the ADAMS program, prioritizing issues, discussing tradeoffs, and alternative deployment approaches, and providing advice on the refinement and execution of the ADAMS Assessment Action Plan.

Public Document Room and Web Teams Activities at Regulatory Information Conference (RIC)

The Chief Information Office (OCIO) Public Document Room (PDR) & WEB teams participated in the Regulatory Information Conference (RIC). PDR & WEB staff were available to answer questions and provide demonstrations of ADAMS and WEB capabilities. Seventeen demonstrations of ADAMS were given with over a hundred discussions on the ADAMS and WEB programs. The most frequently asked questions dealt with a WEB-interface to ADAMS, very specific Publicly Available Record System search-related questions, and WEB-related questions. There was also a lot of interest in the ADAMS User Group.

Freedom of Information and Privacy Act Requests received during the Period of March 1, 2002 through March 7, 2002:

ENCLOSURE H

Division of Accounting (DAF) Employee Development Program

The Division of Accounting and Finance recently implemented an internal employee development program which was the result of a proposal submitted by a branch chief. The purpose of the program is to provide the framework to enhance employee's skills, create opportunities to learn new subject areas, and prepare employees to carry out the work of the division in the next few years. To be eligible, DAF employees must be at the full performance level of their position and have received a fully successful rating for the last appraisal period. Rotations are available into most DAF positions from grade 6 to 14 and each rotation lasts approximately 90 days. Three employees completed the first rotation, with two employees having just begun the second round of rotations. Six more employees are signed up for later this year.

Offices interested in more information on the DAF Employee Development Program, please contact the Chief, License Fee and Accounts Receivable Branch at 301-415-7544.

ENCLOSURE I

Manager of NRC's Employee Assistance and Wellness Services Program Appeared on Internet Broadcast Radio Show

On March 8, 2002, Jon Lobe, Manager of NRC's Employee Assistance and Wellness Services Program, appeared on FEDTalk, an internet broadcast radio show. He discussed employee assistance and wellness issues during the broadcast.

*Transferring from RI to HQ.
**Effective 03/01/02.

ENCLOSURE M

Media Interest

Efforts by two New York state and local governments to close the Indian Point nuclear power plants continues to attract media interest.

There was media interest in testimony delivered by Chairman Meserve to the Senate Foreign Relations Committee regarding ways terrorists could use radioactive materials as weapons.

ENCLOSURE O

Commission Correspondence

1. Letter to Senator Joseph I. Lieberman dated March 1, 2002, provides responses to the recommendations made by the GAO in its report entitled "Nuclear Regulation - NRC's Assurances of Decommissioning Funding During Utility Restructuring Could Be Improved."

2. Letter to C. Scott Vanderhoef, County Executive, County of Rockland, NY, dated March 1, 2002, responds to concerns raised about the security of the Indian Point Nuclear Generating Unit Nos. 2 and 3 (IP2 and 3).

3. Letter to Representative Bruce Smith, Commonwealth of Pennsylvania, dated March 1, 2002, concerns security at the Nation's nuclear power plants and at Three Mile Island.

4. Letter to Sandra R. Galef, New York State Assembly, dated March 1, 2002, concerns resident inspector staffing at the Indian Point 2 and 3 nuclear power stations.

5. Letter to Representative John M. Shimkus dated February 27, 2002, concerns comparison of the Yucca Mountain Project's preparation for a site recommendation for a potential repository at the Yucca Mountain site with that of a "typical/comparable nuclear industry facility at the same state of development," focusing on the level and quality of information assembled at similar sites.

6. Letter to The President, Congress, OMB and GAO, dated February 26, 2002, provides NRC's Fiscal Year 2001 Performance and Accountability Report and our Inspector General's Fiscal Year 2001 Performance Report.

7. Letter to Colonel Carson J. Dunbar, Jr., Superintendent, State of New Jersey, Department of Law and Public Safety, dated February 22, 2002, concerns additional security measures for Highway Route Control Quantity shipments of radioactive materials that NRC issued in an advisory on November 8, 2001.

Federal Register Notices Issued

1. Request to Amend a License to Export Highly-Enriched Uranium, dated February 28, 2002.

2. Atomic Safety and Licensing Board Notice of Evidentiary Hearing and of Opportunity to Make Limited Appearance Statements... In the Matter of Private Fuel Storage, LLC, dated March 1, 2002.

REGION I

Briefings on Shipments of Naval Spent Fuel and HRCQ Through Pennsylvania

On March 4, 2002, the Regional State Agreements Officer attended briefings in Harrisburg, Pennsylvania on shipments of spent fuel under the Naval Propulsion Transportation Program and highway route control quantities (HRCQ) of cobalt-60. The presentation on the Naval Propulsion Transportation Program was made by DOE's Bettis Laboratory and the HRCQ presentation was given by MDS Nordion, a supplier of Co-60. The briefings were organized by the Pennsylvania Emergency Management Agency (PEMA) to enable State and Federal agencies to better understand the equipment, package and/or vehicle tracking capabilities and emergency response capabilities used by DOE and MDS Nordion to ship spent fuel and HRCQ packages through the Commonwealth. Also attending the briefings were approximately 25 representatives from EPA Region III, Federal Highway Administration, Pennsylvania State Police, Pennsylvania Department of Transportation, Pennsylvania Public Utility Commission, Pennsylvania Department of Environmental Protection and PEMA.

Confirmatory Action Letter Issued to Medical Provider's Capital Network

A Confirmatory Action Letter (CAL) was issued to Medical Provider's Capital Network (MPCN), an NRC licensee in Allentown, PA on March 1, 2002. In the CAL, the licensee committed to not using NRC licensed material until a Radiation Safety Officer (RSO) was obtained, an active Authorized User (AU) was performing the duties of an AU, a diagnostic procedures manual was created and approved by the AU, and the AU had instructed all supervised individuals in the use of the procedure manual.

On March 4, 2002, the licensee responded to the CAL and supplied the name of the individual who would be the AU and RSO. Region I amended the license accordingly. Region I closed the CAL on March 7, 2002, permitting the resumption of licensed activities, after interviews of key licensee personnel. NRC continues to review the actions of MPCN.

REGION II

2002 Regulatory Information Conference

On March 5-7, 2002, the Regional Administrator, Director, Division of Reactor Projects, Director, Division of Reactor Safety, and other regional staff members attended the 2002 Regulatory Information Conference in Washington, D.C.

Time and Labor (T&L) Review and Timekeeper's Training

On March 5-7, 2002, representatives from the Office of the Chief Financial Officer were in the Region II Office to conduct the Time and Labor (T&L) Review and Timekeeper's Training. There were two training sessions held for all timekeepers/alternates. The T&L Review session was conducted with individual timekeepers and randomly selected employees.

Entergy Operations, Inc. - Grand Gulf Full Scale Emergency Exercise

On March 5-7, 2002, the Regional State Liaison Officer participated as a member of the Regional Assistance Committee in the full scale Grand Gulf exercise, involving officials of the States of Louisiana and Mississippi and the applicable local governments.

NRC Incident Response Program Rewrite Working Group

On March 5-7, 2002, the Emergency Response Coordinator was in Headquarters to participate in the NRC Incident Response Program Rewrite Working Group.

Human Resources Management Practices Course

On March 6-7, 2002, the Human Resources Management Practices Course, held in the Region II office, was presented by Resolution Dynamics, Inc.

ENCLOSURE R

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