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UNITED STATES NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR REACTOR REGULATION WASHINGTON, D.C. 20555 August 22, 1989 Information Notice No. 88-48, SUPPLEMENT 2: LICENSEE REPORT OF DEFECTIVE REFURBISHED VALVES Addressees: All holders of operating licenses or construction permits for nuclear power reactors. Purpose: This information notice is being provided to present additional information regarding valves supplied by CMA International Incorporated (CMA), which was initially discussed in Information Notice 88-48 and Supplement 1. It is expected that recipients will review this information for applicability to their facilities and consider action, as appropriate, to avoid similar problems. However, suggestions contained in this information notice do not constitute NRC requirements; therefore, no specific action or written response is required. Background: As discussed in IN 88-48 in April 1988, Pacific Gas & Electric (PG&E) informed the NRC about a problem concerning Vogt 2-inch valves (Model No. 13111), which exhibited excessive steam leaking around the bonnet and the stem. The valves were supplied to PG&E by Western Valve Company as new valves. PG&E reported that the valves were shipped to PG&E by CMA, of Vancouver, Washington. Subse- quently Henry Vogt Company representatives examined the Vogt valves at PG&E and determined that they were not manufactured by Vogt. Description of Circumstances: NRC has recently conducted two inspections of CMA to review their facilities, procurement, and sales records. CMA provides new, new surplus, refurbished, and modified valves to valve distribution companies who in turn sell directly to nuclear power plants and other industries. IMA Valve Refurbisher, a Division of CMA, operates from the same address as CMA and provides valve repairing and refurbishing services. Both companies use the same shop and shop personnel. The NRC inspection team reviewed a large sample of CMA records, including valve order packages and bills of lading from various shipping companies that are used by CMA. The CMA valve order packages were found to contain documents 8908160129 . IN 88-48, Supplement 2 August 22, 1989 Page 2 of 4 and information such as; (1) IMA and CMA invoices, (2) IMA and CMA shop orders, (3) IMA and CMA internal notes and directions to shop craftsmen, (4) IMA Valve Refurbisher records, (5) bills of lading, (6) distributor purchase orders/fascimiles, (7) CMA telephone notes regarding sources for valves procured, (8) packing lists, and (9) other associated documents. During the record review at CMA, numerous inconsistencies were observed regarding the validity of the valves that were shipped on the CMA invoices to customers purchasing commercial grade valves. Examples are as follows: (1) On CMA Invoice 9127, dated July 23, 1986, six "Pacific" globe valves (five 8" and one 3" valve) were sold to Zenith Supply Company in Pittsburgh, Pennsylvania, and shipped by CMA to Arkansas Nuclear One (ANO) in Russellville, Arkansas. However, a review of documents at CMA reveals that at least one of the CMA supplied valves was a surplus refurbished valve instead of a new valve as ordered by ANO. (2) Zenith Supply Company, Pittsburgh, Pennsylvania, ordered at least one 24" Crane-Chapman check valve from IMA Valve Refurbisher, under Zenith PO No. 84D8219 for Florida Power Corporation (FPC), PO No. F9022330X, during May 1984. A review of FPC records performed subsequent to the CMA inspection indicates that the licensee procured the valves commercial grade and upgraded them for a safety-related application based, in part, on a Crane Service Center certificate that accompanied the valve order. However, discussions between Crane representatives and NRC staff indicate that the Crane certificate was not issued by Crane. (3) In September 1986 CMA supplied two "Pacific" check valves, to Midwest Valve and Supply, Detroit, Michigan, under Midwest Purchase Order (PO) 5798 (CMA Invoice 9152). Midwest supplied the two "Pacific" valves to Jay Instrument and Specialty Company, Norcross, Georgia (Jay Reference No. 08-6-2480). Apparently, Jay Instrument supplied the valves to the Vogtle nuclear plant facility, and the licensee installed them in the reactor condensate and feedwater system. Subsequent licensee/Pacific Valve Company discussions indicated that the valves were not manufactured by Pacific. (4) A CMA valve order package indicated that CMA bought two 8" used Kerotest valves from CANA-WEST, British Columbia, in December 1986, performed re- conditioning and machining, and drop-shipped the valves to Southern California Edison Company as the supplier for Midwest Valve and Fitting Company (Midwest PO, dated December 31, 1986). Neither the CMA invoice nor the Midwest invoice indicated that the valves were used or reconditioned. The CANA-WEST invoice found in the CMA package specifically stated that used Kerotest valves were supplied to CMA. . IN 88-48, Supplement 2 August 22, 1989 Page 3 of 4 (5) CMA Invoice 9263, dated February 28, 1986, documented the sale of one 4" "Pacific" gate valve to Zenith Supply, Pittsburgh, Pennsylvania, which was drop-shipped to Wayne Pipe and Supply in Fort Wayne, Indiana. Several CMA notes that are part of the CMA valve order package indicated that the CMA shop personnel were instructed to "grind off CHA MAN [leave the "P" on the valve body] and...find Pacific hardware and modify [it]...." The CMA written shop instructions indicated that CMA took a Chapman valve and modified the Chapman trademark to resemble a Pacific valve trademark (i.e., P represents Pacific). (6) CMA Invoice 8327, dated October 11, 1983, sold one 6" "Lunkenheimer" Model 1542 to ITT Grinnell, Portland, Oregon. IMA notes that were found with the CMA valve order package instructed CMA shop personnel to "make [a Lunkenheimer valve] from [a] Kerotest [valve]...may have to weld-up to make 16 inch 'face-to-face'." The IMA notes also indicated the following underlined items to be stamped on a CMA installed name plate: Size - 6", Figure - 1542, S - 150, F - 500, WOG - 275, Stem - CR13, Disc - CR13, Seat - NICU, Body - WCB and Serial - 36100. (7) CMA Invoice 9415, dated March 5, 1987, sold one 20" "Lunkenheimer gate" valve, Model 3013, to Grinnell, Portland, Oregon (Grinnell PO No. 73829AT). CMA notes in the valve order package appeared to indicate that CMA bought a surplus 24" Secca gate valve, and then CMA sandblasted, reseated, repacked, painted, installed a gear operator, and die-stamped the valve with Lunkenheimer's trademark and model number (i.e., "L" 3013). (8) CMA Invoice 9156, dated September 17, 1986, sold one 2" "Henry Vogt" globe valve, Model SW-1023, to Lowe-Parker Corporation in Seattle, Washington. CMA notes in the valve order package indicated that CMA used a new "no-name" CMA stock valve, die-stamped it with "Vogt SW-1023," and added 600-psi-rated flanges in order to obtain the required 11 1/2" face-to-face dimension. (9) CMA Invoice 9623, dated April 5, 1988, stated that it sold five Crane valves to Grinnell, Portland, Oregon (PO 2171-LT). The CMA shop notes stated "refurbish-like new." A CMA certificate of conformance, signed by the CMA President, stated to Grinnell, Longview, Washington, that the subject valves "were purchased . . . as new and unused from surplus lots . . . [CMA] furnished [subject] valves as new surplus in good faith. Valves were inspected and tested by IMA Valve Refurbishing to ensure certification of compliance." A Crane Company letter, dated May 25, 1988, addressed to the Boise Cascade Paper Group (the end user), St. Helens, Oregon, stated in part that inspection by Crane indicated that the subject valves were not new Crane valves, but reconditioned or surplus vintage. Further, Crane was not able to confirm any of the serial numbers as being genuine Crane valve numbers. . IN 88-48, Supplement 2 August 22, 1989 Page 4 of 4 Discussion: The above examples are representative of the CMA valve order packages that were identified and reviewed by the inspectors. The attachment lists the customers of CMA who were identified by NRC during the inspection. Licensees may wish to review the attached list to determine whether any follow-up action is required to confirm the acceptability of procured equipment. It appears from the inspection findings summarized above that a CMA-supplied valve could go through two or more distributors before reaching the end user facility. A nuclear power plant could buy a commercial grade valve from a valve distributor (e.g., Zenith, Midwest, Grinnell) and dedicate the valve for safety-related use on the basis of incomplete or questionable documentation provided with the procurement certifying the conformance of the valve with specifications. Establishment and verification of traceability of procured equipment and material to the original equipment manufacturer is often an important prerequisite to effective receipt and dedication testing programs. Inadequate licensee verification of traceability of procured equipment may result in refurbished equipment such as the previously discussed CMA "modified" valves being installed rather than new equipment as anticipated by the licensee. Licensees may want to consider this above information and review their current receipt inspection and dedication programs to assure that valves and other replacement equipment or material are adequately examined, tested, and audited to assure the requisite quality and traceability of the procurement. No specific action or written response is required by this information notice. If you have any questions about this matter, please contact the technical contact listed below or the Regional Administrator of the appropriate regional office. Charles E. Rossi, Director Division of Operational Events Assessment Office of Nuclear Reactor Regulation Technical Contacts: Edward T. Baker, NRR (301) 492-0959 Joseph J. Petrosino, NRR (301) 493-0979 Attachments: 1. List of CMA Customers 2. List of Recently Issued NRC Information Notices . Attachment 1 IN 88-48, Supplement 2 August 22, 1989 LIST OF POSSIBLE CUSTOMERS OF CMA THROUGH WHOM LICENSEES MAY HAVE PURCHASED VALVES SUPPLIED BY CMA INTERNATIONAL. THE INCLUSION OF A COMPANY ON THE LIST DOES NOT MEAN THAT THE COMPANY KNOWINGLY SUPPLIED COUNTERFEIT OR FRAUDULENT PRODUCTS. Purchaser/Supplier Address ------------------ ------- A J Zinda Portland, Oregon A I C I Tualatin, Oregon Action Group Alburg, Vermont W F Amane Cerritos, California American Forest Products Martell, California Ameron Pipe Products Portland, Oregon Am Fac Supply Co. Pascagoula, Mississippi ARA Explorations, Inc. San Francisco, California Advanced Fluid Controls Dickinson, Maryland Arby Jay Valve Co. St. Louis, Missouri A & B Stainless Califon, New Jersey Barbee Valve Inc. San Diego, California Burgsoe Metal Corp. St. Helens, Oregon Basic Controls & Valves Portland, Oregon Crown Industrial Supply Vancouver, Washington C & A Supply Houston, Texas C G M Valve Co. Houston, Texas Cana West Valve Limited Misku, Alberta, Canada City of Portland Portland, Oregon Clover Supply, Inc. Houston, Texas U.S. Coast Guard ISF Seattle, Washington Columbia Marine Constr. Vancouver, Washington Confederated Tribes Warm Springs, Oregon Consolidated Supply Portland, Oregon Consolidated Pipe/Supply Decatur, Alabama Crowley Maritime Corp. Seattle, Washington Crown Zellerbach Camas, Washington Coffeyville Valve Co. Coffeyville, Kansas Combined Energy Equip., Inc. Martinsville, New Jersey D & B Valve & Fitting Co. Provo, Utah Dante Valve Co. Bellflower, California J A Davies Co. Houston, Texas Department of the Army Portland, Oregon Donaldson, Pyrch & Hume Burnaby, British Columbia, Canada Downey Valve Co. Long Beach, California Dummco Corp. Paramount, California Eder Farms Empire Machinery & Supply Norfolk, Virginia Energy Valve Houston, Texas Familian Northwest Portland, Oregon Force & Motion Industries Portland, Oregon Fred McCoy & Company Billings, Montana G & S Valve Inc. Shreveport, Louisiana Gat X Terminals Corp. Vancouver, Washington General Construction Co. Seattle, Washington Global Supply Co. Hallandale, Florida Great Western Malting Co. Vancouver, Washington Grinnel Corp. Portland, Oregon . LIST OF POSSIBLE CUSTOMERS OF CMA THROUGH WHOM LICENSEES MAY HAVE PURCHASED VALVES SUPPLIED BY CMA INTERNATIONAL. THE INCLUSION OF A COMPANY ON THE LIST DOES NOT MEAN THAT THE COMPANY KNOWINGLY SUPPLIED COUNTERFEIT OR FRAUDULENT PRODUCTS. Purchaser/Supplier Address ------------------ ------- Hahn Supply Lewiston, Idaho Hammond Valve Corp. Vancouver, Washington Harbor Oil Portland, Oregon J M Harder Mechanical Portland, Oregon Hawaii Pipe & Supply Honolulu, Hawaii Houston Valve (J J Valve) Lynwood, California Industrial Valve of Oregon Portland, Oregon Imperial Valve Port Moody, British Columbia,Canada Industrial Commodities Tulsa, Oklahoma Industrial Essentials, Inc. Birmingham, Michigan Industrial Valve Service Mobile, Alabama Industrial Valve/Fitting Tacoma, Washington J & L Petroleum Portland, Oregon Jackson-Markus Supply Co. Los Angeles, California J & J Valve Nowata, Oklahoma Keenan Pipe & Supply Eugene, Oregon Kiewit Portland, Oregon Liberty Equipment & Supply Co. Vancouver, Washington Lowe Parker Corp. Seattle, Washington M & N Pipe & Supply Co. Los Angeles, California Mar Industrial Sales, Inc. Portland, Oregon Marine Piping & Supply Commerce, California Marine & Valve Supply Sante Fe Spring, California Material Distributors Lewiston, Idaho Material Sales & Distribution Lake Oswego, Oregon Meier & Frank Portland, Oregon McCullough Steel Inc. Tupelo, Mississippi Metro East Industrial Supply Granite City, Illinois M-CO Northwest Vancouver, Washington Morton Suuply Inc. Yakima, Washington Mid-West Valve & Fitting Detroit, Michigan Madison Supply Co., Inc. Los Angeles, California M & S Valve & Fitting Co. Chicago, Illinois North American Valve Co. Vancouver, Washington N W Pipeline Battleground, Washington Nielson Valve & Supply Murray, Utah Northwest Controls Seattle, Washington NW Marine Iron Works Portland, Oregon Northwest Pipe Billings, Montana Newmans Milwaukee, Oregon Naval Air Station/Adak Ala Base Pearl Harbor, Hawaii Oregon Steel Portland, Oregon Parks Industrial Valve, Inc. Alpine, Alabama Pacific Pipeline Products San Rafael, California Paramount Supply Portland, Oregon Park Rose Water District Portland, Oregon Penwalt Corp. Portland, Oregon Precision Cast Parts . LIST OF POSSIBLE CUSTOMERS OF CMA THROUGH WHOM LICENSEES MAY HAVE PURCHASED VALVES SUPPLIED BY CMA INTERNATIONAL. THE INCLUSION OF A COMPANY ON THE LIST DOES NOT MEAN THAT THE COMPANY KNOWINGLY SUPPLIED COUNTERFEIT OR FRAUDULENT PRODUCTS. Purchaser/Supplier Address ------------------ ------- Preston Wine Cellars Pasco, Washington Port of Portland Portland, Oregon Production Control Signal Hill, California Puget Sound Pipe & Supply Oakland, California Renew Valve & Fitting Detroit, Michigan Reed College Portland, Oregon S & D Suuply Taft, California Schimberg Co. Cedar Rapids, Idaho Skamania Pud Carson, Washington Shop Services Aloha, Oregon Southern California Valve Paramount, California Spence Mining & Supply Co. Baker, Oregon Standard Pipe & Supply Atlantic Beach, Florida Star Systems, Inc. Amelia, Ohio Sun Dial Marine Troutdale, Oregon Swift Adhesives Portland, Oregon Seh America Ind. Vancouver, Washington Tidewater Barge Lines Vancouver, Washington Tork Sales & Systems San Francisco, California Turko Engineering Lake Oswego, Oregon Triangle Machine Maxwell, California Underground Express Richmond, California USOGC Glacier Portland, Oregon Unified Sewage Co. Hillsboro, Oregon United Steel Vancouver, Washington Universal Valve & Fitting Trot, Michigan Valco Sales Denver, Colorado Valve Automation Long Beach, California Valve Industries Houston, Texas Valve Reconditioning Melvindale, Michigan Valve & Steel Supply Sante Fe Spring, California Valley Industrial Salt Lake City, Utah Western Valve Carson, California W & O Supply Jacksonville, Florida Wallace Co. Phoenix, Arizona Ward-Schmidt Boiler Ceres, California WA St. School for Deaf & Blind Vancouver, Washington Wellons, Inc. Sherwood, Oregon West Coast Shipping Los Angeles, California Willamina Lumber Co. Willamina, Oregon White Swan Lumber Mill White Swan, Washington Willamette Industries Albany, Oregon Zenith Supply Co. Pittsburg, Pennsylvania Zidell Explorations Portland, Oregon .
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