United States Nuclear Regulatory Commission - Protecting People and the Environment

Information Notice No. NO: 79-30, Reporting of Defects and Noncompliance, 10 CFR Part 21

IN79030 

                             December 4, 1979 

MEMORANDUM FOR:     B. H. Grier, Director, Region I 
                    J. P. O'Reilly, Director, Region II 
                    J. G. Keppler, Director, Region III 
                    K. V. Seyfrit, Director, Region IV 
                    R. H. Engelken, Director, Region V 

FROM:               Harold D. Thornburg, Director, Division of Reactor 
                      Construction Inspection, IE 

SUBJECT:            Information Notice No. NO: 79-30, REPORTING OF DEFECTS 
                    AND NONCOMPLIANCE, 10 CFR PART 21. 

The subject document is transmitted for issuance on December 6, 1979. The 
Information Notice should be issued to all power reactor facilities holding 
operating licenses and construction permits and vendors inspected by LCVIP. 

Also enclosed is a draft of the transmittal letter. 


                                        Harold D. Thornburg, Director 
                                        Division of Reactor Construction 
                                          Inspection 
                                        Office of Inspection and Enforcement 

Enclosures: 
1.   Draft Transmittal Letter 
2.   Information Notice No. No.
       79-30

CONTACT:  M. W. Peranich, IE 
          49-27551 
.

                                           Information Notice No. 79-30 

Gentlemen: 

The enclosed Information Notice provides information with regard to 
reporting of defects and noncompliance, in accordance with Part 21 of Title 
10, Chapter 1, Code of Federal Regulations. 

This Information Notice is provided as notification of a significant matter.
Although no specific action or response is requested, it is expected that 
recipients will review the information for possible applicability. If you 
have questions regarding the matter, please contact me. 

                                        Sincerely, 


                                        Signature 
                                        (Regional Director) 

Enclosures: 
1.   Information Notice No. 
       No. 79-30 
2.   List of Recently Issued 
       IE Information Notices 
.

                                                            SSINS: 6870 
                                                            Accession No: 
                                                            7910250502 
                              UNITED STATES 
                      NUCLEAR REGULATORY COMMISSION 
                   OFFICE OF INSPECTION AND ENFORCEMENT 
                          WASHINGTON, D.C. 20555 
                                     
                             December 6, 1979 

                                            Information Notice No. 79-30 

REPORTING OF DEFECTS AND NONCOMPLIANCES, 10 CFR PART 21 

Background 

Section 21.1, Title 10, Code of Federal Regulations, Chapter 1, Part 21, 
states, "The regulations in this part establish procedures and requirements 
for implementation of Section 206 of the Energy Reorganization Act of 1974. 
That Section requires any individual director or responsible officer of a 
firm constructing, owning, operating or supplying the components of any 
facility or activity which is licensed or otherwise regulated pursuant to 
the Atomic Energy Act of 1954, as amended, or the Energy Reorganization Act 
of 1974, who obtains information reasonably indicating: (a) that the 
facility, activity or basic component supplied to such facility or activity 
fails to comply with the Atomic Energy Act of 1954, as amended, or any 
applicable rule, regulation, order, or license of the Commission relating to 
substantial safety hazards or (b) that the facility, activity, or basic 
component supplied to such facility or activity contains defects which could 
create a substantial safety hazard, to immediately notify the Commission of 
such failure to comply or such defect, unless he has actual knowledge that 
the Commission has been adequately informed of such defect or failure to 
comply." 

Discussion 

Recent inspections performed by NRC Office of Inspection and Enforcement 
personnel reveal a general misunderstanding of 10 CFR Part 21 requirements 
in cases where a licensee or nonlicensee has selected to rely on other 
reporting requirements such as 50.55(e) and Regulatory Guide 1.16 as the 
means to adequately inform the Commission of a matter reportable under Part 
21. In this area inspection findings have consistently shown that many 
activities covered by Part 21 have not been appropriately considered in 
procedures and other instructions currently being implemented. Specifically,
the provisions of 21.21(a)(1), 21.21(a)(2), 21.21(b)(3) and 21.51 are not 
being adequately addressed. 

Compliance with each element of the rule is necessary to assure proper 
handling of matters subject to consideration and reporting under Part 21. 
Your attention is directed to Section 21.51 which requires that each 
individual or organization subject to 10 CFR Part 21 prepare records 
sufficient to assure compliance with the requirements of that part. 
.

Information Notice No. 79-30                             December 6, 1979
                                                            Page 2 of 2 

All holders of NRC licenses or permits issued pursuant to 10 CFR Part 50, 
architect-engineers, contractors and suppliers subject to Part 21 
requirements should ensure that management control systems are established 
to assure that all requirements of 10 CFR Part 21 are met, with particular 
emphasis on the specific areas discussed above. 

Page Last Reviewed/Updated Tuesday, November 12, 2013