United States Nuclear Regulatory Commission - Protecting People and the Environment

Bulletin 88-05: Nonconforming Materials Supplied by Piping Supplies, Inc. at Folsom, New Jersey And West Jersey Manufacturing Company at Williamstown, New Jersey

                                                       OMB No.: 3150-0011
                                                       NRCB 88-05


                                  UNITED STATES
                          NUCLEAR REGULATORY COMMISSION
                      OFFICE OF NUCLEAR REACTOR REGULATION
                             WASHINGTON, D.C.  20555

                                   May 6, 1988


NRC BULLETIN NO. 88-05:  NONCONFORMING MATERIALS SUPPLIED BY PIPING 
                         SUPPLIES, INC. AT FOLSOM, NEW JERSEY AND WEST 
                         JERSEY MANUFACTURING COMPANY AT WILLIAMSTOWN, 
                         NEW JERSEY


Addressees: 

All holders of operating licenses or construction permits for nuclear power 
reactors.  

Purpose: 

The purpose of this bulletin is to require that licensees submit information 
regarding materials supplied by Piping Supplies, Incorporated (PSI) at Folsom, 
New Jersey and West Jersey Manufacturing Company (WJM) at Williamstown, New 
Jersey and to request that licensees 1) take actions to assure that materials 
comply with ASME Code and design specification requirements or are suitable 
for their intended service, or 2) replace such materials.  

Description of Circumstances: 

The NRC has obtained copies of certified material test reports (CMTRs) for 
material supplied by PSI and WJM that contain false information about material 
supplied to the nuclear industry.  A number of CMTRs were apparently used to 
certify that commercial-grade, foreign steel meets the requirements of ASME 
Code Section III, Subarticle NCA-3800, by using a domestic forging company's 
letterhead.  There was no evidence that PSI or WJM performed or had a subcon-
tractor perform the testing required by Section III to upgrade the 
commercially produced steel for these falsified CMTRs.  The information 
available to date indicates that WJM started supplying ASME Code components to 
the nuclear industry in 1976, both directly as well as through intermediaries, 
and that PSI started supplying ASME Code components to the nuclear industry 
directly and through intermediaries in 1985.  In addition, WJM held an ASME 
Quality System Certificate (QSC-385) as a material manufacturer from November 
30, 1979 to November 30, 1985.  

The NRC has concluded that there are potential generic safety implications at 
facilities that either have received direct shipment of materials furnished by 
PSI or WJM (i.e., pipe fittings and flanges) or received piping subassemblies 
and other components from holders of ASME Certificates of Authorization or 
other subcontractors which incorporated materials supplied by PSI or WJM.  


8804290255
.                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 2 of 4


Actions Requested:

1.   Review purchasing records for your facility and determine whether any 
     WJM- or PSI-supplied ASME Code or ASTM materials have been furnished to 
     your facility.  The lists of purchasing and receiving companies given in 
     Attachments 1 and 2 have been developed through the NRC's partial review 
     of PSI and WJM documents.  It is emphasized that the NRC has not reviewed
     all documents; therefore, the review of records should not be limited to 
     the companies on these lists.  The records review for PSI-supplied 
     material should cover the period since January 1, 1985.  The WJM review 
     should cover the period since January 1, 1976.

2.   For ASME Code and ASTM materials furnished by PSI or WJM that are either 
     not yet installed in safety-related systems at your facility or are in-
     stalled in safety-related systems of plants under construction, the 
     following actions are requested:  (perform action a and either action b 
     or c)

     a.   Provide a list of WJM- and PSI-supplied materials that are found not
          to be in conformance with the applicable code requirements or 
          procurement specifications and identify the applications in which 
          these materials are used or will be used.  Include the material 
          specification, the nature of the component (e.g., pipe flange), size 
          and pressure rating; also indicate the chain of purchase, and either  

     b.   Take actions that provide assurance that all received materials 
          comply with ASME Code Section III, ASTM, and applicable procurement 
          specification requirements, or that demonstrate that such materials 
          are suitable for the intended service.  For example, this program 
          should include specific verification that austenitic stainless 
          steels have been received in a non-sensitized condition, or, 
          
     c.   Replace all questionable fittings and flanges with materials that 
          have been manufactured in full compliance with ASME Code Section 
          III, ASTM, and the applicable procurement specification 
          requirements.

3.   For ASME Code and ASTM materials furnished by WJM or PSI already 
     installed in safety-related systems in operating plants, the following 
     actions are requested:

     a.   Provide a list of the WJM- and PSI-supplied materials that are found
          not to be in conformance with the applicable code requirements or 
          procurement specifications and identify the applications in which 
          the materials are used.  Include the material specification, the 
          nature of the component (e.g., pipe flange), size, and pressure 
          rating; also indicate the chain of purchase.  

     b.   Take actions requested in 2b or 2c above.  However, an evaluation 
          should be undertaken prior to replacing questionable material in 
          accordance with 2c above that considers the occupational radiation 

.                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 3 of 4


          exposure that would be received during the replacement process.  
          This evaluation should be considered in developing the method and 
          timing of material replacements.  

     c.   Document and maintain for inspection a basis for continued plant 
          operation if the program requested in item 3b has not been completed 
          within 120 days of the date of receipt of this bulletin.

4.   For any PSI- or WJM-supplied materials having suspect CMTRs and used in 
     systems that are not safety-related, take actions commensurate with the 
     function to be performed.  

5.   Maintain for inspection the documentation of the specific actions taken 
     for the identified materials.

6.   For operating plants, all scheduled actions should be completed before a 
     restart from the next major outage starting after 180 days from the date 
     of receipt of this bulletin.  For plants under construction all scheduled 
     actions and the reporting required by 2 below should be completed prior 
     to the planned fuel load date.  If any addressee cannot meet this 
     schedule, they should justify to the NRC their proposed alternative 
     schedule.

Reporting Requirements:

1.   Provide a written report within 120 days of the date of receipt of this 
     bulletin that either:

     a.   States that no WJM- or PSI-supplied materials have been furnished 
          for your facility for use in safety-related systems, if such is the 
          case, or 

     b.   Provides the information requested in items 2a and 3a above that 
          indicates which materials have been found not to be in conformance 
          with the applicable code requirements or procurement specifications,
          confirms completion of other actions requested in items 2b or c, 3b 
          and 4, and provides a schedule for completing any remaining actions.

2.   Confirmation of completion of all scheduled actions shall be submitted to 
     the NRC within 60 days of completion for operating plants and prior to 
     the fuel load date for plants under construction.

The written reports, required above, shall be addressed to the U.S. Nuclear 
Regulatory Commission, ATTN:  Document Control Desk, Washington, D.C.  20555, 
under oath or affirmation under the provisions of Section 182a, Atomic Energy 
Act of 1954, as amended.  In addition, a copy shall be submitted to the appro-
priate Regional Administrator.  

This requirement for information was approved by the Office of Management and 
Budget under clearance number 3150-0011. 

.                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 4 of 4


If you have any questions regarding this matter, please contact one of the 
technical contacts listed below or the Regional Administrator of the appro-
priate NRC Regional Office. 




                              Charles E. Rossi, Director
                              Division of Operational Events Assessment
                              Office of Nuclear Reactor Regulation

Technical Contacts:  Ray Cilimberg, NRR
                     (301) 492-3220

                     Ed Baker, NRR
                     (301) 492-3221

Attachments: 
1.  Table 1 - Known and Intended Recipients of Carbon Steel Materials 
      furnished by PSI or WJM
2.  Table 2 - Known and Intended Recipients of Stainless Steel Materials
      furnished by PSI or WJM
3.  List of Recently Issued NRC Bulletins
.                                                                 Attachment 1
                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 1 of 2


             TABLE 1 - KNOWN AND INTENDED RECIPIENTS OF CARBON STEEL
                       MATERIALS FURNISHED BY PSI AND WJM


Purchaser                Receiving Company        Nuclear Plant (if known)

Radnor Alloys, Inc.      Bechtel Power Corp.      Pilgrim
Capitol Pipe & Steel     Bechtel Power Corp.      Midland
Pullman Power Products   Pullman Power Products   Palo Verde
Pullman Power Products   Daniel                   Wolf Creek
Pullman Power Products   Cleveland Electric       Perry
Pullman Power Products   Bechtel Power Corp.      South Texas
Pullman Power Products   Pullman Power            San Onofre
Pullman Power Products   Pullman Power            Vogtle
Tyler Davison            Bechtel Power Corp.      Grand Gulf
Osborne Brothers Welding 
  Supply                 General Electric         Perry
HUB Incorporated         Duke Power               Oconee
HUB Incorporated         Bechtel Power Corp.      Arkansas
HUB Incorporated         Bechtel Power Corp.      WNP-2
Chicago Tube & Iron      Omaha Public Power       Fort Calhoun
                           District
Chicago Tube & Iron      Commonwealth Edison      Braidwood
Chicago Tube & Iron      Cherne Construction Co.  Marble Hill
Chicago Tube & Iron      Northern States Power    ---------
Chicago Tube & Iron      Consumer Power           Palisades
Dravo Corp.              Dravo Corp.              Seabrook
Joliet Valves, Inc.      Joliet Valves, Inc.      ---------
McJunkin                 Bechtel Power Corp.      San Onofre
Guyon Alloys             Babcock & Wilcox         ---------
ITT Grinnell             ITT Grinnell             ---------
Guyon Alloys, Inc.       Bechtel Power Corp.      Limerick
Guyon Alloys, Inc.       Northeast Nuclear Energy Millstone
                           Company 
Guyon Alloys, Inc.       Bechtel c/o PP&L         Susquehanna
Guyon Alloys, Inc.       Duke Power               Catawba
Guyon Alloys, Inc.       Bechtel Power Corp.      Hope Creek
Guyon Alloys, Inc.                                WNP-2
Guyon Alloys, Inc.       Carolina Power & Light   Brunswick
Guyon Alloys, Inc.       Baldwin Associates       Clinton
Guyon Alloys, Inc.       South Carolina Electric  V.C. Summer
                           and Gas
Guyon Alloys, Inc.       Carolina Power & Light   Shearon Harris
Guyon Alloys, Inc.       Gulf States              River Bend
Bellows                                           ---------
American Standard        American Standard        ---------
Louis P. Canuso          Bechtel/Public Service   Hope Creek
.                                                                 Attachment 1
                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 2 of 2


             TABLE 1 - KNOWN AND INTENDED RECIPIENTS OF CARBON STEEL
                       MATERIALS FURNISHED BY PSI AND WJM
                                   (continued)


Purchaser                Receiving Company        Nuclear Plant (if known) 

Capitol Pipe & Steel     Bechtel                  Hope Creek
Gulfalloy                Bechtel Power Corp.      Palo Verde
Public Service Electric  
  and Gas                PSE&G                    Salem
Conax                    Conax                    ---------
Consolidated Power*      Bechtel Power            South Texas
Consolidated Power*      Duke Power               McGuire
Consolidated Power*      Boston Edison            Pilgrim
Consolidated Power*      Niagara Mohawk           Nine Mile Point
Consolidated Power*      Philadelphia Electric    Limerick
Louis P. Canuso          Bechtel Corp.            Hope Creek
Dubose                   Toledo Edison            Davis-Besse
Dubose                   Florida Power            Crystal River
Dubose                   TVA                      Sequoyah
Dubose                   TVA                      Watts Bar
Dubose                   PP&L                     Susquehanna
Dubose                   SMUD                     Rancho Seco
Dubose                   Rochester Gas & Electric Ginna
Dubose                   Duke Power               Oconee
Dubose                   Power Authority State    FitzPatrick
                           of N.Y.
Dubose                   South Carolina Electric  ---------
                           and Gas 













*Consolidated Power is also known as Consolidated Piping and Supply located
 in Birmingham, Alabama, Furlong, Pa., and Charlotte, N.C.
.                                                                 Attachment 2
                                                                 NRCB 88-05
                                                                 May 6, 1988
                                                                 Page 1 of 1


           TABLE 2 - KNOWN AND INTENDED RECIPIENTS OF STAINLESS STEEL
                       MATERIALS FURNISHED BY PSI AND WJM


Purchaser                Receiving Company        Nuclear Plant (if known) 

HUB Incorporated         Bechtel Power Corp.      Limerick
Radnor Alloys            Radnor Alloys            ---------
Pullman Power Products   Pullman Power            ---------
Dravo Corp.              Dravo Corp.              Seabrook
Louis P. Canuso, Inc.    Philadephia Electric     Peach Bottom
L. P. Canuso, Inc.       Bechtel Power Corp.      ---------

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