Information Notice No. 88-48, Supplement 2 - Licensee Report of Defective Refurbished Valves

                                  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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