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SECY 99-027

January 28, 1999

Contact: D. Lange, OEDO

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending January 22, 1999

Public Meeting with the Nuclear Procurement Issues Committee

On January 19, 1999, NRR staff members met with representatives from the Nuclear Procurement Issues Committee (NUPIC) to discuss their audits of nuclear fuel suppliers. The NUPIC staff discussed their general framework for coordinating licensee audits. A more detailed explanation of the NUPIC/Nuclear Fuels Committee (NFC) was also provided to the staff. Enhancements in the NFC audit process for the fuel suppliers that accounts for technical issues raised by the staff, and enhanced interactions with the nuclear fuel affinity groups was also discussed. The staff requested that NUPIC consider making a formal submittal to the NRC to solidify actions that licensees have taken to provide enhanced oversight of the fuel suppliers.

A Public Meeting for Severe Accident Management Alternative

On January 7, 1999, the staff participated in a public meeting at the Calvert Cliffs site to discuss and resolve remaining issues on the review of the Baltimore Gas & Electric Company's (BGE) Severe Accident Mitigation Alternative (SAMA) analysis for license renewal. BGE provided additional information/clarification in response to several key staff questions. We also discussed other areas in the licensee's SAMA process which the staff believed to be important for completing the Supplemental Environment Impact Statement (SEIS) for Calvert Cliffs. BGE was generally responsive, and most issues have been addressed. The staff will follow and resolve a few remaining issues to complete the accident analysis portion of the draft SEIS.

Highlight on Staff Discussions with WNP-2 and Their Proposed Response to the Asea Brown Boveri Code Errors for Determining CPR

Asea Brown Boveri (ABB) has submitted three Part 21 notifications (one dated November 2, 1998, and two dated January 15, 1999) concerning code input description, modeling (lower plenum in BISON code) and critical power ratio (CPR) correlation errors in their transient codes. These errors may have a non-conservative impact on the safety and operating limit minimum critical power ratios (OLMCPR) for their fuel in the WNP-2 unit. The use of the correlation for the CPR monitoring system is also non-conservative. ABB has evaluated these errors for the previous operating cycles (Cycles 12 and 13) and found them to be acceptable. These errors only affect the WNP-2 current operating cycle (Cycle 14). WNP-2 and ABB have evaluated these errors for Cycle 14, and at greater than 5000MWD/T cycle exposure the OLMCPR may be non-conservative. WNP-2 will revise their CPR limits prior to reaching this cycle exposure where the CPR may become non-conservative. ABB will also provide WNP-2 with a recommended corrective action to ensure that sufficient margin for monitoring core CPR is maintained at greater than 5600MWD/T. This was discussed with the staff in a phone call on January 19, 1999. The staff agreed with the licensee approach for evaluating the impact of these errors, and their strategy for corrective action through the current WNP-2 cycle. ABB will submit a new CPR correlation for NRC review and approval in the second quarter of CY-99.

Duane Arnold Energy Center

On January 20, 1999, the NRC granted enforcement discretion to IES Utilities Inc. for continued operation of the Duane Arnold Energy Center (DAEC). The Notice of Enforcement Discretion (NOED) was granted verbally by NRR to avoid an undesirable transient caused by an unplanned plant shutdown. DAEC entered a Technical Specification (TS) required 12 hour plant shutdown at 0430 CST due to both diesel generators (DGs) being declared inoperable as a result of not satisfying a surveillance test. Specifically, both DGs failed to maintain voltage and frequency within the specified range within the required time of ten seconds during an unloaded DG start test.

The licensee requested an NOED until an exigent TS amendment could be processed to change the parameters of the surveillance requirement (SR). The NOED was granted at approximately 1130 EST.

DAEC received NRC approval to convert its TS to the Improved TS (ITS) on May 22, 1998, and implemented the ITS on August 1, 1998. Prior to adopting the ITS, the SR for DG testing required the DG to reach rated frequency and voltage within the specified time. The ITS SR specifies a band for both frequency and voltage which the DG must reach within the specified time. When the test was run using the ITS criteria, both DGs reached the minimum frequency and voltage within the required 10 seconds, but did not steady out in the band until 15 and 22 seconds, respectively, therefore, failing the surveillance test.

Subsequent to the NRC review of the DAEC TS conversion, the NRC approved a generic change to the ITS which removes the upper band for frequency and voltage from this SR. This generic change, Technical Specification Task Force (TSTF) change 163, Revision 2, will be proposed by DAEC in their exigent license amendment request which will be submitted on January 22, 1999.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending January 22, 1999

Grand County Council Meeting on Atlas

On January 20, 1999, staff from the Division of Waste Management (DWM) attended a meeting of the Grand County Council and the Environmental Protection Agency (EPA). The purpose of the meeting was to have EPA respond to a December 1, 1998, letter from the Council asking for EPA assistance on the Atlas mill tailings reclamation plan. In the letter, the Council identifies what it believes are deficiencies in the Nuclear Regulatory Commission (NRC) evaluation, the need for EPA involvement in the process, and a request that EPA look at revisiting its earlier Comprehensive Environmental Response Compensation Liability Act (CERCLA) assessment of the site. At the meeting, EPA discussed its position on the site, and answered questions from Council members. In particular, EPA noted that it had done a CERCLA evaluation of the site and deferred any action to the NRC. However, EPA also stated that if it did not find NRC's actions on the site to be adequate, EPA would consider what actions might be taken under CERCLA. Council members also questioned DWM staff on the status of NRC's review as well as issues associated with the ongoing licensing action.

Meeting with International Uranium (USA) Corporation - White Mesa

On January 20, 1999, Nuclear Regulatory Commission (NRC) staff from the Division of Waste Management (DWM) met with the International Uranium (USA) Corporation (IUC) to discuss pending issues relevant to IUC's White Mesa Uranium Mill. The items addressed included: the Ashland 2 alternate feed license amendment; the Ashland 1 alternate feed license amendment; the mill reclamation plan; performance-based licensing for alternate feed materials; future amendment applications; and the IUC petition regarding the NRC Alternate Feed Guidance. IUC raised concerns regarding the timeliness of several applications now under review by the NRC staff. DWM committed to looking over several high priority amendments currently under staff review to consider what could be done to accelerate the review. In addition, IUC committed to providing additional information needed for DWM to complete other pending applications.

Observation of Corrosion Problems Identified in BU-7 Uranium Oxide Shipping Containers

On January 20, 1999, the Spent Fuel Project Office (SFPO) sent a team of staff members to BWX Technologies (BWX), in Lynchburg, Virginia, to observe and learn more about the severe corrosion of BU-7 shipping containers. SFPO was first notified of the corrosion problem on January 13, 1999. The observers are gathering information on the details of the corrosion, the locations of corrosion on the containers, the number of containers involved, and the materials and methods used to fabricate the containers. BWX continues to work with the manufacturer of the containers in determining the cause of the corrosion.

Workshop for the Sealed Source and Device Industry

On January 13, 1999, the Division of Industrial and Medical Nuclear Safety (IMNS) held a workshop with vendors of sealed sources and devices (SSDs). Over 40 industry representatives attended the workshop which was designed to improve the quality of license applications, leading to reduction in license approval time. Nuclear Regulatory Commission (NRC) staff gave presentations on how to prepare applications that would fully address all provisions of the regulatory requirements. The staff also described improvements in the NRC evaluation process, including newly-implemented acceptance reviews. Acceptance review of applications was implemented by IMNS in January 1999, as a key Business Process Reengineering element in streamlining the SSD licensing process. The vendors actively participated in the workshop, with questions regarding the approval criteria, as well as with numerous suggestions for constructive interaction between the industry and NRC. The scope of their suggestions covered a wide range of subjects such as, providing SSD licensing information on the NRC website, self-certification role for vendors' quality assurance programs, and interpretation of the NRC guidelines for applications recently published in NUREG-1556, Vol. 3.

Public Meeting on 10 CFR Part 70 Rulemaking

On January 13-14, 1999, a public meeting was held to discuss nuclear criticality safety issues related to the 10 CFR Part 70 rulemaking effort. Among others, representatives from the Nuclear Energy Institute (NEI ), Department of Energy, Westinghouse, ABB-Combustion Engineering, BWX Technologies, and Siemens attended the meeting. Industry comments on the nuclear criticality aspects of the draft Part 70 rule and associated Standard Review Plan (SRP) were discussed. NEI is expected to provide more specific comments on the SRP criticality chapter (in the form of annotated text) in the near future. Nuclear Regulatory Commission staff expect to post revised criticality rule language on the web by January 29, 1999, and to post a revised SRP criticality chapter on the web by February 12, 1999.

International Atomic Energy Agency Safeguards at BWX Technologies Facility

On January 11-13, 1999, the International Atomic Energy Agency (IAEA) performed its Physical Inventory Verification on the low-enriched uranium that was downblended by the BWX Technologies plant located in Lynchburg, Virginia. (This low-enriched uranium was produced from the Phase I downblending of the Project Sapphire high-enriched uranium which the U.S. Government obtained from the Government of Kazakhstan in 1994.) During the close-out meeting, the IAEA noted that no anomalies were identified and expressed appreciation for the cooperation they received. The occasion of the inspection was also used to begin planning for the application of safeguards to the Phase II downblending of additional materials, scheduled to begin in April 1999.

On January 14-15, 1999, representatives from the Interagency Subgroup on IAEA Safeguards in the U.S. (chaired by the Nuclear Regulatory Commission) met with the IAEA inspectors and BWX Technologies staff to begin discussions with respect to the downblending of 50 tons of excess high-enriched uranium which have been declared surplus from the nuclear weapons program. Options for IAEA verification of the downblending were discussed and follow-up actions identified.

ENCLOSURE C

Office of Nuclear Regulatory Research
Items of Interest
Week Ending January 22, 1999

Rates of Initiating Events at U.S. Nuclear Power Plants

The Safety Programs Division, Reliability and Risk Assessment Branch (AEOD) has issued the final report Rates of Initiating Events at U.S. Nuclear Power Plants: 1987-1995 (NUREG/CR-5499). The objective of this study is to update the initiating event frequency estimates based on operating experience from licensee event reports during the time period 1987 through 1995. The report also includes a comparison with initiating event frequency estimates published in probabilistic risk assessments and individual plant examinations (IPEs), an evaluation of the most significant trends, and an evaluation of dominant contributors to risk-significant initiators. A draft of this report was provided to the Office of Nuclear Reactor Regulation, the Office of Nuclear Regulatory Research, the regions, and industry and public interest organizations for peer review and comment.

This is the first major analysis of initiating event frequency estimates for non-LOCA events since NUREG/CR-3862, Development of Transients Initiating Event Frequencies for Use in Probabilistic Risk Assessments, was published in 1985. Also, this report is the first significant effort to update LOCA pipe break frequencies since 1975 when WASH-1400, Reactor Safety Study, was issued.

Notable observations and findings of the study include the following:

• Combined initiating events frequencies for all initiators are lower than the frequencies used in NUREG-1150, Severe Accident Risks: An Assessment for Five U.S. Nuclear Power Plants, and IPEs by a factor of five and four, respectively.

• General transients constitute 77% of all initiating events. Events that pose a more severe challenge to the plant's mitigation systems (nongeneral transients) constitute the remaining 23%.

• Over the nine-year span considered by this report, either a decreasing or constant time trend was observed for all categories of events. A decreasing trend was identified in over two/thirds of the more risk-significant (with respect to core damage frequency) categories that had sufficient data for trending analysis. The overall initiating event frequency decreased by a factor of two to three during the nine-year span. Most risk-significant (with respect to core damage frequency) initiators frequencies (such as total loss of feedwater flow, loss of instrument or control air, inadvertent closure of all main steam isolation valves, and total loss of condenser heat sink for BWRs) decreased at a faster rate than the overall initiating event frequency.

• Loss-of-coolant accident frequencies are lower than those used in NUREG-1150 and industry-wide IPEs. For LOCA initiators, the frequencies were evaluated using data and information prior to 1987 due to their relative low frequency and the corresponding sparseness of data. No pipe break LOCA events were found in the U.S. operating experience. For small pipe break LOCA frequency, the estimate from WASH-1400 was updated using U.S. reactor experience. For medium and large pipe break LOCAs, frequency estimates were calculated by using the frequency of leaks or through-wall cracks that have occurred which challenge the piping integrity. Further, conservative estimates were used for the probability of break given a leak (based on a technical review of information on fracture mechanics, data on high energy pipe failures and cracks, and assessment of pipe break frequencies estimated by others since WASH-1400).

These findings are discussed in more detail in the report. Graphical and tabular displays, along with specific discussions, are included. Categorical listings of the reactor trip events used in the analyses are included in an appendix in the report. For a perspective on the implications of these initiating event frequencies on overall plant risk, it is necessary to also consider other factors such as system and component reliabilities and common-cause failure probabilities. The paper, Indications of U.S. Nuclear Industry Trends from the Risk-based Analysis of Operating Experience, presented at PSAM4 provides some perspective on the implications of the findings of this report with respect to overall risk.

ENCLOSURE D

Incident Response Operations
Items of Interest
Week Ending January 22, 1999

PRELIMINARY NOTIFICATIONS:

1. PNO-I-99-003, New York Power Authority, NOTIFICATION OF AN UNUSUAL EVENT DUE TO A FIRE AT AN ONSITE HYDROGEN STORAGE FACILITY

2. PNO-I-99-004, Northeast Utilities (Millstone 3), CARBON DIOXIDE DISCHARGE INTO CABLE SPREADING ROOM

3. PNO-III-99-003, Indiana Michigan Electric Co. (Cook ½), RESTART SCHEDULE DEFERRED TO PERFORM ADDITIONAL. ENGINEERING REVIEWS

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending January 22, 1999

Security for Meetings

On Wednesday January 20, 1999, the Division of Facilities and Security (DFS) coordinated security support for the public meeting for the decommissioning of the Indian Point Nuclear Generating Station Unit 1 held in Peekskill, New York. One meeting was held in the evening , 7:00 p.m. - 9:30 p.m. Also, on January 21-22, 1999, DFS coordinated security support for the meeting of the International Regulators Association, hosted by the Chairman. The meeting was held in Region IV.

Release of Warehouse Space

On Friday, January 22, 1999, DFS met with representatives from the General Services Administration, Real Estate Division, to discuss our plans to release 10,000 square feet of space at the NRC Warehouse.

Rulemaking Activities for the Week Ending January 22, 1999

Requirements Concerning the Accessible Air Gap for Generally Licensed Devices (Part 31)

A document withdrawing a proposed rule that would have provided additional regulatory control over certain measuring, gaging, and controlling devices to prevent unnecessary radiation exposure to individuals was published in the Federal Register on January 20, 1999 (64 FR 3052).

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending January 22, 1999

Freedom of Information and Privacy Act Requests received during the 5-Day Period of January  15, 1999 through January 21, 1999:

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending January 22, 1999

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending January 22, 1999

Media Interest

The Cleveland Plain Dealer is publishing a story about First Energy Corporation, the utility that owns the Perry and Davis-Besse plants.

ENCLOSURE N

Office of International Programs
Items of Interest
Week Ending January 22, 1999

Visit of Mr. Kazumasa Hioki, Japan Science and Technology Agency

On January 19, Kazumasa Hioki, Director of the Office of International Relations, Nuclear Safety Bureau, Japan Science and Technology Agency, visited NRC and met with Janice Dunn Lee and Kevin Burke, OIP; Mike Cullingford, NRR; and Andy Szukiewicz, RES, to discuss regulatory safety matters. Mr. Hioki provided an update on the reorganization of Japan's nuclear regulatory structure and the plans for the nuclear regulatory functions at the STA to be incorporated into a restructured and soon to be renamed Ministry of International Trade and Industry in the year 2001. There was also a discussion of Japan's interest to join the "CAMP" and "COOPRA" research programs.

Meeting of the Subgroup on Nuclear Export Coordination

On January 22, 1999, Suzanne Schuyler-Hayes, OIP, represented NRC at the weekly meeting of the Subgroup on Nuclear Export Control Coordination (SNEC), an interagency committee chaired by the Department of State which primarily reviews export applications involving items controlled for nuclear non-proliferation (NP) reasons. The group discussed 14 Department of Commerce cases concerning dual-use exports going to India, China, and Israel. There was also a discussion on the application of the U.S. sanctions policy on exports to India.

Visit of Oleksandr Smyshlyayev, First Deputy Minister, Nuclear Safety Administration of Ukraine

Representatives of the Nuclear Regulatory Administration, Ministry of Environmental Protection and Nuclear Safety (MEPNS), visited the United States during the period of January 19-22, 1999. The delegation was led by Oleksandr Smyshlyayev, First Deputy Minister and Head of the Nuclear Regulatory Administration, and included Gennady Zhidok, Director of Licensing of Nuclear Installations and Sergei Bobryakov, Division Head of International Relations.

During their visit, the representatives met with Chairman Jackson and the Commissioners, the Executive Director for Operations, and appropriate members of the NRC staff, as well as representatives from the Departments of State and Energy. This was the eighth annual meeting between the two agencies, whose purpose it was to review program results and accomplishments since the last meeting in January 1998, to reaffirm or revise previous program commitments, and to consider proposals for new initiatives under the "Lisbon" program.

Meeting of the International Nuclear Regulators Association (INRA)

On January 21-22, 1999, Chairman Shirley Ann Jackson, chaired the fourth meeting of the International Nuclear Regulators Association (INRA). The meeting was held in the NRC's Region IV Office in Arlington, Texas. The Group focused on two key regulatory concepts, Independence and the Regulatory Process. There was also a discussion on the Year 2000 Computer Problems and the Members agreed to issue a Statement.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending January 22, 1999

Commission Correspondence

1. Letter to Representative George Miller and Bob Filner dated January 13, 1999 responds to request that the NRC refrain from authorizing the FEIS for capping the Atlas Corp's. Uranium mine tailings site in Moab, UT (incoming dated November 23, 1998 also released)

2. Letter to Congress dated January 15, 1999 provides a report to Congress on the gaseous diffusion plants located in Paducah, Kentucky, and Portsmouth, Ohio

Federal Register Notices Issued

1. 10 CFR Parts 30, 40, 50, and 70; Docket No. PRM-50-65; Nuclear Information and Resource Service; Receipt of Petition for Rulemaking

2. 10 CFR Part 50; Docket No. PRM-50-66; Nuclear Information and Resource Service; Receipt of Petition for Rulemaking

3. 10 CFR Parts 50 and 70; Docket No. PRM-50-67; Nuclear Information and Resource Service; Receipt of Petition for Rulemaking

ENCLOSURE P

Region I
Items of Interest
Week Ending January 22, 1999

Sealed Source and Device Vendor Workshop

On January 13, 1999, the Regional State Agreements Officer and a Senior Health Physicist from Nuclear Materials Safety BR#2 attended the Sealed Source and Device (SS&D) Vendor Workshop presented by NMSS's Material Safety Branch in Rockville, MD. The workshop was attended by approximately 60 representatives from manufacturers and distributors of sealed sources and devices as well as state and federal agencies. The day long workshop focused on the SS&D review process, the preparation of an application, handling of deficiencies in an application and vendor responsibilities.

OSHA Pilot at Lawrence Berkeley Laboratory, Berkeley, California

From January 6 through 13, 1999, a Region I Health Physicist and Branch Chief supported the OSHA pilot at the Lawrence Berkeley Laboratory in Berkeley, California as part of the overall DOE external regulation pilot activities. Regional staff accompanied and observed OSHA inspectors during review of both radiological and non-radiological program areas and participated in policy discussions involving federal and state OSHA, USEPA, California Department of Radiological Health and DOE. The Region is participating in the preparation of the final report on the pilots.

ENCLOSURE P

Region II
Items of Interest
Week Ending January 22, 1999

Region II Reorganization

On January 17, 1999, Region II implemented a reorganization primarily consisting of reducing the number of branches in the Division of Reactor Safety and realigning inspection functions.

Duke Energy Corporation - McGuire Nuclear Power Plant

On January 19, 1999, representatives from Duke Energy Corporation presented a self-assessment of McGuire's performance. The licensee discussed the previous years' accomplishments and initiatives for 1999.

Virginia Electric and Power Company - Surry Nuclear Power Plant

On January 21, 1999, the Regional Administrator accompanied Commissioner Merrifield and Congressman Bobby Scott to the Surry Nuclear Power Plant to meet with the resident inspectors, tour the plant, and meet with licensee representatives.

ENCLOSURE P

Region IV
Items of Interest
Week Ending January 22, 1999

Meeting With Kerr-McGee Corporation

On January 22, 1999, the Region IV Division Director, Division of Nuclear Materials Safety (DNMS), and other DNMS staff met with senior representatives of Kerr-McGee Corporation in the Region IV office to discuss issues associated with the decommissioning of "test-pits" located at Kerr-McGee Technical Center in Oklahoma City, Oklahoma, and termination of License SUB-986.

ENCLOSURE R

Office of Congressional Affairs
Items of Interest
Week Ending January 22, 1999