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SECY-98-088

April 23, 1998

Contents	Enclosure
Nuclear Reactor Regulation	A
Nuclear Material Safety and Safeguards	B
Nuclear Regulatory Research	C
Analysis and Evaluation of Operational Data	D
General Counsel	E*
Administration	F
Chief Information Officer	G
Chief Financial Officer	H*
Human Resources	I
Small Business & Civil Rights	J*
Enforcement	K*
State Programs	L*
Public Affairs	M
International Programs	N
Office of the Secretary	O
Region I	P
Region II	P
Region III	P
Region IV	P*
Executive Director for Operations	Q*
Congressional Affairs	R
*No input this week

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending April 17, 1998

Calvert Cliffs Units 1 & 2

On April 10, 1998, Baltimore Gas & Electric (BG&E), the licensee for Calvert Cliffs Units 1 and 2 submitted its application requesting the extension of both reactor operating licenses for an additional 20 years beyond their current 40 years term pursuant to 10 CFR Parts 54 and 51.

The contents of BG&E's application include 36 technical reports describing how, during the renewal term, the effects of aging will be managed for the systems, structures, and components within the scope of the rule. Additionally, the application includes an updated final safety analysis supplement, technical specification changes, and an environmental report.

BG&E has been working with the staff on license renewal dating back to just before the publication of the 1991 license renewal rule. Following the 1995 revision of the rule, the pace of the staff's efforts with BG&E was accelerated in order to develop guidelines regarding the format and content of its application. In 1995, BG&E submitted a methodology for identifying the structures and components subject to an aging management review that was approved by the staff. Starting in 1996 and continuing into 1997, the staff worked with BG&E to develop a template for technical and environmental information that would be submitted in its application.

Calvert Cliffs Unit 1 and Unit 2 licenses expire in 2014 and 2016 respectively.

The Office of Public Affairs has been notified.

Meeting with BWROG Appendix R Committee

On April 13, 1998, staff of the Fire Protection Engineering Section (FPES), Plant Systems Branch, NRR, met with representatives of the Boiling Water Reactors Owners Group (BWROG), Appendix R Committee, to discuss post-fire safe shutdown circuit analysis issues. FPES provided the BWROG representatives with NRR's Circuit Analysis Resolution Plan (CARP). The FPES staff discussed its plans including an information notice regarding circuit analysis problems, followed by a related generic letter. The BWROG representatives stated that the Appendix R Committee, which has the full participation of the BWR owners, is examining the BWR owners' positions related to circuit analysis and is developing a circuit analysis document which may provide generic guidelines on safe shutdown circuit analysis. The BWROG may submit the document as a topical report for NRC staff review. The BWROG representatives stated that they wanted to continue to interface with the staff and requested that the staff attend a BWROG Appendix R Committee meeting. The next such meeting is scheduled for May 1998. The Generic Issues and Environmental Projects Branch will issue a meeting summary.

Meeting with AECB of Canada Regarding Fire Protection

On April 13, 1998, staff of the Fire Protection Engineering Section, Plant Systems Branch, NRR, met with staff of the Atomic Energy Control Board (AECB) of Canada. The meeting was held at the request of the AECB to discuss the United States experience with nuclear power plant fire protection and post-fire safe shutdown. The NRC staff discussed the development and history of the NRC fire protection regulations and guidelines; the use of industry codes and standards; fire protection inspection experience; and technical issues including fire brigades and fire fighting, fire barriers, fire barrier penetration seals, fire suppression systems, fire detection systems, and protection of post-fire safe shutdown capability. The AECB representatives discussed the "open" design of Canadian reactor plants, the fire protection challenges such a design concept introduced, and the Canadian emphasis on manual fire fighting capability.

Risk-Informed Technical Specification Modifications

The staff has received the Combustion Engineering Owners Group (CEOG) Joint Applications Report for Risk-Informed High Pressure Safety Injection (HPSI) System Technical Specification (TS) Modifications, dated March 1998. The proposed TS change would extend the allowed outage time from one or three days to seven days for an inoperable HPSI train. The review of this report by SCIENTECH, the staff contractor, has begun.

The first plant-specific submittal for HPSI TS Modifications is expected from Waterford, Unit 3 in June 1998, along with this plant's similar submittals for (risk-informed) Safety Injection Tanks (SITs), Low Pressure Safety Injection (LPSI) System, and Emergency Diesel Generators (EDGs). Similar submittals from other Combustion Engineering plants are expected to follow.

Generic Fundamentals Examination Administration

The Operator Licensing Branch (HOLB) administered the national Generic Fundamentals Examination (GFE) to 229 candidates at 30 facilities on April 8, 1997. The GFE is a 100 question examination which measures candidate knowledge of reactor theory, components, and thermodynamics and which must be successfully passed by achieving a score of 80 percent. Passing the GFE is a prerequisite for eligibility to complete the site-specific examination for attaining a reactor or senior reactor operator license.

Ginna

The CEOs of New York's six operating nuclear plants met on April 6, 1998, and approved funding to continue formation efforts for the next 3 months. Robert E. Smith was selected to be the interim New York Nuclear Operating Company (NYNOC) CEO to direct the establishment of the organization needed to complete key milestone activities during the coming year. Mr. Smith is currently the Senior Vice President of Energy Operations for Rochester Gas and Electric Corporation (RG&E) and is scheduled to retire in July 1998. He will serve as CEO of NYNOC until the end of the year.

Key objectives to be worked during the next three months are the NYNOC Operating Agreement and the Individual Facilities Operating Agreement. The Operating Agreement is the document that will determine how NYNOC will be governed and includes such topics as: voting allocations; capitalization requirements; and membership responsibilities. The Facility Operating Agreements are the separate agreements between NYNOC and each utility which describe how NYNOC will operate and maintain each nuclear facility.

Headquarters of the NYNOC will be in the Albany area.

Salem Nuclear Generating Station Units 1 and 2

Operational Status - Salem Unit 1 entered Mode 1 on April 13, 1998, and is currently at about 47 percent power; the main generator was synchronized to the grid on April 16, 1998. The NRC resident staff, with support from regional personnel, is providing augmented coverage of the restart ascension activities. On April 15, 1998, the licensee exited a Technical Specification (TS) 72-hour action statement when the No. 11 service water (SW) traveling screen was returned to service after repair of a failed shear pin and realignment. The No. 12 SW strainer was out of service at the same time for maintenance.

The licensee is taking 4-hour rod readings since the rod deviation alarm has been declared inoperable. While attempting to conduct flux mapping, the licensee experienced problems with a traversing incore probe (TIP) drive and found an additional problem with the software version running on the Unit 1 P-250 process computer. The licensee found that the software upgrade installed on Unit 2 had not been done for Unit 1. The licensee is checking the results of test data taken to date to determine if this has caused additional testing problems.

Salem Unit 2 returned to full power on April 12, 1998. The licensee had taken preemptory action to reduce power and take the main generator off-line on April 8, 1998, when it first entered a TS 72-hour action statement after several of the SW strainers became inoperable. Although the traveling screen have been in continuous operation, carry-over had occurred from the high grass loading and general waterborne trash levels. The station continues in an abnormal operating procedure for high river grass loading level that requires increased monitoring of heat exchanger differential pressures and performance for bio-fouling.

Salem Assessment Panel (SAP) - The next SAP meeting will be scheduled after the licensee completes its first hold-point at 25 percent power for flux mapping. This occurred on April 18, 1998. The licensee is also required to provide the results of its self-assessment of unit performance within 30 days after returning to full-power operation.

State of New Jersey - On April 13, 1998, representatives from the N.J. Department of Environmental Protection, Bureau of Nuclear Engineering, conducted a drop-in visit with Project Directorate I-2 to introduce themselves to new project personnel and to discuss their activities with regards to Salem and Hope Creek and issues such as commitment tracking and standard technical specifications.

ACRS Briefing -The ACRS has requested a briefing from the licensee on September 2, 1998, regarding the lessons-learned from the extended dual-unit shutdown.

Dresden Unit 2

Dresden Unit 2 performed a UT inspection of all 92 of the reactor pressure vessel studs in accordance with ASME Section XI, Appendix VI during the current refueling outage. The inspection identified two (2) studs ( studs #52 and #81) with detected flaw indications. The licensee replaced stud # 52; however, had mistakenly replaced stud #91 instead of stud #81. The vessel head is currently tensioned and the RPV pressure test has been completed. The licensee is planning to startup from the refueling outage with old stud #81 in place. A RPV head stud flaw evaluation report was submitted to the staff for evaluation on April 15, 1998. The staff held a conference call with the licensee on April 15, 1998, to state that after a preliminary review of the analysis the staff had no immediate objection for plant restart; however, the licensee understands that additional information has been requested and that a full review and safety evaluation will follow.

Kewaunee

The following is a repeat of a press release regarding Kewaunee plans to replace their steam generators.

The Public Service Commission of Wisconsin (PSCW) Approves S/G Replacement at Kewaunee Nuclear Plant

On April 7, Wisconsin Public Service (WPS) received state approval of its plan to spend about $90 million to replace the two steam generators at its Kewaunee Nuclear Power Plant. WPS is one of three owners of Kewaunee. The three owners of the plant will continue to negotiate an agreement to allow the project to move forward. They will report back to the PSCW on the progress of the talks 30 days after the written order is issued, which is expected in two to four weeks. Plant Manager Charlie Schrock said Public Service hopes to quickly reach an agreement with the other two owners of the plant, Wisconsin Power & Light (WP&L) and Madison Gas & Electric (MG&E). "We're three different companies with different needs, different plans, and different views of the future. We've been talking and negotiating for several years and the Commission's ruling that this is the way to go should help us all reach an equitable agreement." MG&E favors replacing Kewaunee with a 500MW combined cycle plant. WP&L is not convinced that S/G replacement will be cost effective under deregulation. If both WP&L and MG&E reject S/G replacement, WPS would have to go to court for approval of S/G replacement. Among the points considered by the PSCW in arriving at its decision is that continued NRC vigilance will assure that O&M cuts would not lead to adverse effects. The PSCW also concluded that the S/G replacement costs can still be recovered even with restructuring and deregulation.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending April 17, 1998

Inspection of Transportation Activities at Industrial Nuclear Company, Inc., and Issuance of Confirmatory Action Letter

On February 23-27, 1998, the Spent Fuel Project Office conducted a safety team inspection at Industrial Nuclear Company, Inc. (INC), in San Leandro, California. The inspection team focused on design, fabrication, maintenance, and use activities for transportation packaging. The team identified several safety concerns in INC's design, testing, and fabrication controls, and in INC's corrective action program.

A Confirmatory Action Letter (CAL) was issued by NMSS on March 26, 1998, to document the programmatic corrective actions proposed by INC in a telephone conference call with the Nuclear Regulatory Commission (NRC) after the inspection. On April 2, 1998, INC provided information regarding their actions in response to the items noted in the CAL and requested clarification of CAL Item 5, which pertains to INC's agreement to forward the quality assurance (QA) expert's report containing an assessment of INC's QA program to the NRC. By letter dated April 13, 1998, NRC responded and noted that INC had agreed to provide their proposed corrective action plan to NRC for review 30 days after receipt of the QA expert's report.

Portland General Electric Re-submits Request for Additional Information

On March 26, 1998, Portland General Electric Company (PGE) submitted a revised response to a request for information (RAI-2) for the review and approval of a site specific license for an independent spent fuel storage installation (ISFSI) at the Trojan Nuclear Plant. PGE's first RAI-2 response was returned because of its overall poor quality. Staff from the Spent Fuel Project Office completed its acceptance review of the revised RAI response and found it to be improved in all areas. Work has resumed on the Trojan ISFSI application.

ENCLOSURE C

Office of Nuclear Regulatory Research
Items of Interest
Week Ending April 17, 1998

Direct Containment Heating Experiment

During a core melt accident, if the reactor pressure vessel (RPV) fails while the reactor coolant system (RCS) is at high pressure, the ejection of the core debris into the containment will cause the containment pressure to rise and may result in early failure of the containment. This severe accident phenomenon is referred to as direct containment heating (DCH). Over the last several years, the Accident Evaluation Branch of the Office of Nuclear Regulatory Research conducted an extensive research program directed at determining the likelihood of early containment failure from DCH. This program led to successful issue resolution for Westinghouse PWR large, dry containments, concluding that the likelihood of early containment failure for these containments is small. The issue resolution for the remaining PWRs is ongoing. Under a cooperative research program with the Forschungszentrum Karlsruhe in Germany and the Institut de Protection et de Surete Nucleaire of the Commissariat a l'Energie Atomique in France, two supplemental DCH tests are being conducted at the Sandia National Laboratories (SNL) using the capabilities developed as part of the earlier DCH research program. These supplemental tests are being conducted at lower pressures than the previous DCH tests and are designed to provide additional insights into the potential for intentional RCS depressurization to mitigate DCH loads.

On April 2, 1998, SNL successfully conducted the first supplemental test in the Surtsey (1/10 scale) facility for an RCS pressure of 1 MPA or 145 psia (previous DCH tests were conducted at RCS pressures of 4 MPa (580 psia) and higher). Preliminary test data from this first test showed a peak pressure increase in the Surtsey facility similar to earlier tests conducted at higher RCS pressures. Although post-test analysis is ongoing, preliminary results do not indicate a significant reduction in the dispersal of core debris or the resultant containment pressure rise at this lower RCS pressure.

Meeting of the Executive Committee of the JCCRER

Russian operations at a Southern Urals nuclear weapons complex, Mayak Production Association, since the 1940's have resulted in the routine and accidental release of enormous amounts of radioactive materials into the environment. Thousands of Mayak workers and citizens received serious overexposures (1 to 10 Gy) because limited radiation protection measures were in effect. A 1994 bilateral agreement between the United States and the Russian Federation created the Joint Coordinating Committee on Radiation Effects Research (JCCRER) to facilitate joint cooperative research and the exchange of dosimetry, demographic, and health effects information. This cooperative exchange provides an opportunity to examine the health effects of acute and chronic, long-term human exposure to internal and external radiation. The results will be used to validate and update health effects models and radiation risk coefficients.

A semiannual Executive Committee (EC) meeting of the JCCRER was held in Rockville, MD on March 30-31, 1998. Dr. Shlomo Yaniv, Division of Regulatory Application (DRA), is the NRC representative on the EC and attended the meeting, along with Dr. Vincent Holahan (DRA) and Ms. Cynthia Jones (NMSS). A major accomplishment of the EC meeting was the finalization and signing of the Data Access Agreement, which ensures access to all primary and original data necessary to conduct dosimetric and health effects research of workers exposed to radiation at the Mayak Production Association. Additional agreements for each separate project coordinated under the auspices of the JCCRER will be developed and finalized at a later date.

The joint EC also discussed efforts to improve coordination with non-JCCRER organizations conducting similar health effect research in Southern Urals in order to ensure optimum leveraging of national and international resources; received status reports on the acquisition and installation of electronic equipment to improve communications between Russian and U.S. participants; and discussed alternatives on how to promote U.S.-Russian collaboration in emergency response efforts, including participation in an emergency response exercise in Davenport, Iowa, in the fall of 1998.

The next meeting of the JCCRER is tentatively scheduled for next fall in Moscow.

Issuance of Regulatory Guide

Revision 2 to Regulatory Guide 4.7, "General Site Suitability Criteria for Nuclear Power Stations," was issued on April 8, 1998.

ENCLOSURE D

Office for Analysis and Evaluation of Operational Data
Items of Interest
Week Ending April 17, 1998

Draft-Special Study Methodology for Identifying Financial Variables For Trend Analysis

On April 6, 1998, AEOD issued for internal comment a draft report, "Special Study Methodology for Identifying Financial Variables For Trend Analysis." This study summarizes the statistical and practical methods used to date to select and evaluate financial variables for use in the Nuclear Regulatory Commission's Senior Management Meeting process. Given the analysis to date, the financial variables are revenue factor, nonfuel operation and maintenance costs, coverage, and total production cost per megawatt hour. These variables exhibit a good statistical correlation with plants discussed at past Senior Management Meetings. Comparing the four site indicator trends to earlier single-unit and multiunit trends in the nuclear industry identifies changes that often preceded decisions to discuss a plant at a Senior Management Meeting. The analysis confirms that the financial indicators should not be used alone to make decisions in the Senior Management Meeting process. However, the analysis of trends of financial variables does provide useful information to be used in conjunction with plant performance trends. The role of financial variables is to add to the information base and to identify where the Nuclear Regulatory Commission may need to be attentive to the possibility that a licensee may be compromising safety to reduce costs.

Preliminary Notifications

1. PNO-II-98-022, Atec Associates, STOLEN PORTABLE GAUGE.
   
   
2. PNO-IV-98-015, Washington Agreement State, CONTAMINATED FILM BADGES.
   
   
3. PNO-IV-98-016, Entergy Operations, Inc. (River Bend 1), PLANT SHUTDOWN GREATER THAN 72 HOURS.
   
   
4. PNO-IV-98-017, Siemans Nuclear Power Corporation, FIRE IN WASTE HANDLING AREA.
   
   
5. PNO-IV-98-017A, Siemans Nuclear Power Corporation, FIRE IN WASTE HANDLING AREA.

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending April 17, 1998

Acquisition Training

On April 9, 1998, the Division of Contracts and Property Management conducted its Acquisition for Project Managers module entitled "Source Evaluation Panel (SEP) Procedures." This module focuses on the duties and responsibilities of SEP members including effective evaluation of proposals, determination of the competitive range, and contractor selection.

Revision of Fee Schedules; 100% Fee recovery, FY 1998 (Parts 2, 140, 170, and 171)

A proposed rule entitled "Revision of Fee Schedules; 100% Fee Recovery, FY 1998" was published in the Federal Register on April 1, 1998 (63 FR 16046). The proposed rule would amend the licensing, inspection, and annual fees charged to NRC applicants and licensees as necessary to recover approximately 100 percent of the NRC budget authority for FY 1998. The comment period for the proposed rule closes May 1, 1998.

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending April 17, 1998

Freedom of Information and Privacy Act Requests Received during the 5-Day Period of April 10, 1998 - April 16, 1998:

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending April 17, 1998

Health Education Workshop Sponsored by NRC Health Center

On April 14, 1998, the NRC Health Center sponsored a lunchtime workshop on breast cancer detection and treatment. Dr. Melvin W. Gaskins, the presenter, discussed the best ways to detect breast cancer in its earliest stages, when treatments have the greatest cure rates. He also provided information about resources for breast cancer screenings and lower-cost mammography services. Dr. Gaskins is Chairman of the Howard University Cancer Committee and a Clinical Research Oncologist for the Howard University Cancer Center. He is also a Board member of the Prince George's Chapter of the American Cancer Society and a board-certified oncologist in private practice in the Washington, D.C. area.

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending April 17, 1998

Media Interest

Bill Beecher visited Ukraine and Chernobyl to meet with nuclear regulatory officials about their development of public information initiatives.

Region III staff conducted telephone interviews during the week with reporters from the Monroe Evening News, The Toledo Blade and The Monroe Guardian on the Fermi decommissioning meeting.

School Volunteers Program

The NRC, along with about 30 other federal agencies, is participating in the "FREE" working group (Federal Resources for Educational Excellence) which provides educational resources to students, teachers, and parents on the internet. The FREE website can be found at http://www.ed.gov/free/

Correction: Nader Namish, OE, Sherry Wu and Robert Lewis, NMSS, and Alan Levin and Pam Kruzic, OCIO, helped judge a science fair at Argyle M.S. on March 30.

ENCLOSURE N

Office of International Programs
Items of Interest
Week Ending April 17, 1998

Mission Nuclear Attaché

Mission Nuclear Attaché Chuck Serpan visited Washington the weeks of April 6 and April 13. Mr. Serpan met with the Chairman, Commissioner Dicus, NRC management and staff, as well as officials at the Departments of State, Energy, EPA, and the National Academy of Sciences. During his visit, he heard from Washington officials about issues and activities of interest and concern and provided updates regarding those and other matters. While in Washington, he also attended the Regulatory Information Conference.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending April 17, 1998

Commission Correspondence Released to the Public

1. Letter to Oregon Governor John Kitzhaber dated April 8, 1998 informs that the NRC has decided to reassume regulatory authority for sealed source and device evaluations and approvals within the State of Oregon.
   
   
2. Letter to Senator Christopher Bond dated April 9, 1998 concerns efforts by the NRC/EPA to coordinate standards on cleanup of radioactive contamination through a MOU.
   
   
3. Letter to EPA Administrator Carol Browner dated April 9, 1998 concerns an MOU and EPA's guidance regarding cleanup of radioactive contamination at CERCLA sites (incoming of February 19 and 20, also released).
   
   
4. Letter to Catherine LeBlanc, White House Initiative on Historically Black Colleges and Universities, dated April 9, 1998 provides NRC's FY 1997 Annual Federal Performance Report on efforts to assist Historically Black Colleges and Universities (incoming of March 16, 1998 also released).
   
   
5. Letter to Anthony Torrice, Financial Management Service, dated April 9, 1998 provides renewal of Delegation of Authority (incoming of March 3, 1998 also released).

Federal Register Notices Issued

1. Notice of Meeting of the Advisory Committee on Reactor Safeguards, Subcommittee Meeting on Thermal-Hydraulic and Severe-Accident Phenomena, May 11 and 12, 1998.

ENCLOSURE P

Region I
Items of Interest
Week Ending April 17, 1998

Predecisional Enforcement Conference with Alaron

On April 15, 1998 a predecisional enforcement conference was held with Alaron Corporation of Wampum, Pennsylvania. The purpose of the conference was to discuss the findings of an NRC inspection conducted on February 26, 1998 (Inspection Report No. 030-30666/98-001), which identified an apparent violation involving the licensee's failure to dispose of licensed material contained in waste within two years from the date the waste was placed in storage. This was a repeat violation. The licensee described the root cause of the violation and described their immediate and comprehensive corrective actions. An appropriate enforcement sanction is pending.

ENCLOSURE P

Region II
Items of Interest
Week Ending April 17, 1998

Westinghouse Columbia Plant

The Deputy Regional Administrator and selected Region II and NMSS staff members met with representatives from the Westinghouse Electric Corporation in Columbia, South Carolina on April 16, 1998, to discuss the results of the Licensee Performance Review (LPR). The NRC outlined the results of the LPR and licensee management discussed their conclusions based on their own evaluation of their performance. The Licensee's conclusions were similar to the NRC's findings. The licensee also discussed actions planned and are underway to improve performance.

South Carolina Electric and Gas Company - Summer

Region II completed the Safety System Engineering Inspection with an exit at the Summer Nuclear Plant on April 17, 1998. The Director, Division of Reactor Safety attended the exit. The team focused the inspection on the facility's emergency feedwater system, which performs several key functions for the safe operation of the plant. There were no operability issues identified by the inspection, and the licensee had performed an extensive self-assessment in preparation for the inspection.

Duke - Oconee

On April 13, 1998, the Regional Administrator signed the charter for establishment of the Oconee Management Oversight Group (MOG). This group consists of Regional and NRR management representatives who will monitor progress of Oconee's implementation of their recovery plan, make assessments of plant performance and coordinate staff inspections and resolution of Oconee issues. The MOG conducted the first staff meeting in April 14, 1998, and will meet with the licensee to discuss the charter and coordinate recovery actions on April 22, 1998.

ENCLOSURE P

Region III
Items of Interest
Week Ending April 17, 1998

Management Meeting with Mallinckrodt, Inc.

On April 17, 1998, a meeting was conducted in the Region III Office, Lisle, Illinois, between management representatives from Mallinckrodt, Inc. and members of the NRC staff. The meeting discussion focused on the results of an NRC team inspection conducted in January 1998. The inspection identified eight apparent violations and several concerns regarding Mallinckrodt's problem identification and corrective action program. The meeting discussed the company's corrective actions for the findings from the January inspection, as well as the status of Mallinckrodt's corrective actions for NRC inspection findings identified in May and June 1997. NRC Region III Regional Administrator A. Bill Beach participated in the meeting.

ENCLOSURE R

Office of Congressional Affairs
Items of Interest
Week Ending April 17, 1998

The Senate returns from spring recess on April 20th, and the House returns on April 21st.