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Information Notice No. 92-56: Counterfeit Valves in the Commercial Grade Supply System
UNITED STATES NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR REACTOR REGULATION WASHINGTON, D.C. 20555 August 6, 1992 NRC INFORMATION NOTICE 92-56: COUNTERFEIT VALVES IN THE COMMERCIAL GRADE SUPPLY SYSTEM Addressees All holders of operating licenses or construction permits for nuclear power reactors. Purpose The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notice to alert addressees of the results of an NRC investigation of suspect valves, suggesting that counterfeit commercial grade valves may have been procured by NRC licensees. It is expected that recipients will review the information for applicability to their facilities and consider actions, as appropriate, to avoid similar problems. However, suggestions contained in this information notice are not NRC requirements; therefore, no specific action or written response is required. Description of Circumstances In 1987, Coffeyville Valve, Incorporated, (CVI) supplied approximately 47 Crane Company (Crane) valves through a valve supplier, to the Swinerton & Walberg Construction Company (Swinerton), for installation in the Impell Co-Generation Plant, Camarillo, California. Upon receiving the Crane valves, Swinerton, with the assistance of a Crane Company representative, determined that all of the Crane valves were counterfeit. One of the flaws in the fraudulent nameplate labels found by the Crane Company representative was that only "Crane" was imprinted on the label, instead of "Crane Co." In June 1988, Crane won a civil court action for trademark infringement against CVI. The NRC staff determined that, in 1987, CVI purchased approximately 7500 nameplate labels from a label manufacturer, and these labels were imprinted with several valve manufacturers' names. The manufacturers' names that were imprinted on the labels that CVI purchased included Crane, Pacific, Walworth, Powell, and Lunkenheimer. On December 16, 1987, CVI shipped two Crane, 14-inch gate valves, to the Consolidated Edison Company of New York (Con Ed) Indian Point Station Unit 2 (IP-2), through a valve supplier. Con Ed procured the two Crane valves for its nonsafety-related "Feed and Condensate System" and did not require the valve supplier to meet the NRC requirements of Appendix B to 10 CFR Part 50 or 10 CFR Part 21. 9207310194. IN 92-56 August 6, 1992 Page 2 of 2 At the request of the NRC staff, a Crane Company representative subsequently inspected the two 14-inch valves, which had been installed at IP-2. After the inspection, the Crane Company representative informed the NRC staff that: The conclusion to be drawn from the marking, lettering and dimensional observations is that there are sufficient grounds to suspect that the subject two 14-inch valves installed in the Con Ed condensate system were not new Crane manufactured valves at the time they were purchased. The valves are in all likelihood either old Crane valves that have been in unknown service and reconditioned by parties other than Crane Company, or valves of unknown origin with the Crane name applied without the consent of the Crane Company. In either event, the valves were furnished outside the control of Crane Company and would therefore not be under any Crane warrantee as to fitness for service. Discussion The information that the NRC staff has compiled suggests that CVI may have supplied suspect Crane valves to other valve suppliers or distributors. Additionally, this information suggests that CVI may have also supplied suspect commercial grade Pacific, Walworth, Powell, and Lunkenheimer valves. The NRC staff determined that CVI procured several thousand valve labels similar to those used on the fraudulent Crane valves. Although the NRC staff does not have any example where a suspect valve was installed in a safety- related application, the NRC staff is concerned that suspect valves may have been introduced by CVI into the commercial grade valve supply system and may have been installed at some licensee facilities. NRC requirements allow for commercial grade item dedication for safety-related application. In March 1989, the NRC issued Generic Letter (GL) 89-02, "Actions to Improve the Detection of Counterfeit and Fraudulent Marketed Products." The purpose of GL 89-02 was to share elements of procurement and dedication programs that appeared to be effective in detecting counterfeit or fraudulently marketed products. This information notice requires no specific action or written response. If you have any questions about the information in this notice, please contact the technical contact listed below or the appropriate Office of Nuclear Reactor Regulation (NRR) project manager. Charles E. Rossi, Director Division of Operational Events Assessment Office of Nuclear Reactor Regulation Technical contact: Joseph J. Petrosino, NRR (301) 504-2979 Attachment: List of Recently Issued NRC Information Notices .
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