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June 15, 1998

MEMORANDUM TO: L. Joseph Callan
Executive Director for Operations
FROM: John C. Hoyle /s/
SUBJECT: STAFF REQUIREMENTS - SECY 98-119 - REMAINING ISSUES RELATED TO RECOVERY OF MILLSTONE NUCLEAR POWER STATION, UNIT 3, AND BRIEFING ON REMAINING ISSUES RELATED TO PROPOSED RESTART OF MILLSTONE UNIT 3, 8:30 A.M. AND 1:00 P.M., FRIDAY, JUNE 2, 1998, COMMISSIONERS' CONFERENCE ROOM, ONE WHITE FLINT NORTH, ROCKVILLE, MARYLAND (OPEN TO PUBLIC ATTENDANCE)

The Commission, after considering the comments provided by representatives of Northeast Nuclear Energy Company, Sargent and Lundy, members of the public, and the NRC staff during their presentations at the June 2 Commission briefing, and the staff's assessment of the licensee's readiness for restart contained in SECY 98-119, concurs in the NRC staff's conclusion that the licensee has taken appropriate corrective actions to support the restart of Millstone Unit 3. The Commission therefore approves the staff's proposal to change the watch list status of Millstone Unit 3 from a Category 3 to a Category 2 plant; authorizes the restart of Unit 3, subject to satisfactory completion of all remaining issues requiring NRC verification; and designates the Executive Director for Operations as the senior manager responsible for verifying that the appropriate aspects of Inspection Manual Chapter 0350 are completed and for approving commencement of actions to restart Unit 3.

(EDO) (SECY Suspense:     As appropriate)

In taking this action, it is the Commission's intention that Millstone Unit 3 should operate in accordance with its license and the staff should conduct appropriate inspections for a category 2 plant. The Independent Corrective Action Verification Program can be terminated for Unit 3 and the third party oversight provided by Little Harbor Consultants should be eliminated as soon as feasible in accordance with the Commission's Staff Requirements Memorandum of May 19, 1998. The Commission recognizes that although the licensee's corrective action program is adequate to support the restart of Unit 3, the lasting effectiveness of the corrective action program can best be assessed by evaluating long-term performance. Therefore, the Commission supports the staff's plans to perform another team inspection in this area within a year of the actual restart date for Unit 3, and to monitor carefully Unit 3 inspection findings as well as related Unit 1 and Unit 2 inspection findings that reflect on Millstone site-wide processes in order to identify any adverse trends that might develop. The staff is directed to submit a plan for Special Project Office demobilization to the Commission. Additionally, the staff should evaluate lessons learned from the Unit 3 ICAVP effort and apply them to the Unit 2 process.

(EDO) (SECY Suspense - not later than 9/01/98)

cc: Chairman Jackson
Commissioner Dicus
Commissioner Diaz
Commissioner McGaffigan
OGC
CFO
CIO
OCA
OIG
Office Directors, Regions, ACRS, ACNW, ASLBP (by E-Mail)
PDR
DCS


SECY NOTE:  This SRM and the Commission Voting Record on SECY 98-119 will be made publicly available when the SRM is issued. SECY 98-119 was provided to participants in the June 2 Commission briefing on Saturday, May 29, 1998, and was made available to the general public at the June 2 Commission meeting.