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SECY 98-169

July 10, 1998

Contact: M. Tschiltz, OEDO

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending July 2, 1998

Davis-Besse Nuclear Power Station

On Wednesday, June 24, 1998, the Davis-Besse Nuclear Power Station suffered damage from a tornado that caused a loss of offsite power. The emergency diesel generators started and provided power to vital areas of the plant. The plant cooled down on natural circulation and remained in Mode 3 (hot standby) during event recovery. An NRC Special Inspection Team was dispatched to the site.

The NRC team determined that the licensee documented all known damage and equipment abnormalities and developed and implemented corrective actions to address the issues. The team concluded that the licensee performed a methodical, comprehensive review of the event and its consequences. The corrective actions taken resulted in all affected onsite systems being returned to an operable condition by Sunday, June 28. In addition, FEMA determined late Sunday that the offsite conditions and infrastructure were acceptable for restart.

The Bayshore offsite power source is still being repaired, though the other two offsite power sources are operable and powering the plant.

As of Wednesday, July 1, the plant continues in Mode 3 with startup expected within the next day.

H. B. Robinson Unit 2

Carolina Power & Light (CP&L) requested a Notice of Enforcement Discretion (NOED) regarding compliance with H.B. Robinson Unit 2 Tech Spec limit on the Ultimate Heat Sink (UHS) temperature. It was anticipated that they would exceed the limit of 95F as a result of unusually hot and dry weather conditions. A NOED was granted based on a telephonic conversation held on June 27, 1998, with NRC staff and the licensee. This NOED grants an 8-hour delay in the UHS temperature restoration period prior to entering the plant shutdown required actions. For the duration of the effective period of the NOED, the licensee will monitor service water system (SWS) temperature hourly. Should the temperature exceed 99 degrees F, the plant will enter the original TS provision and be in MODE 3 within 6 hours. The staff expects to issue a one-time amendment effective until September 30, 1998, after which the plant will return to the original TS provisions.

Meeting with the Westinghouse Owners Group on Baffle Bolt Cracking

NRR staff from DE, DSSA, and DRPM met with the Westinghouse Owners Group (WOG) on June 25, 1998, to discuss the status of WOG's baffle former bolting programs. The WOG presentation focused on their June 22, 1998, response to NRC's April 9, 1998, letter. The presentation covered assessment of the safety significance of potentially degraded baffle bolting, alternative licensing strategy to the previously proposed baffle bolt analytical approach, the implementation plan for site inspection/replacement preparations and contingency activities, and risk informed assessment.

The NRC's April 9, 1998, letter to the WOG requested an assessment of the safety significance of the baffle bolt issue for operating U.S. Westinghouse PWRs. The WOG summarized its letter response, which was based on assessments performed using both deterministic and risk-informed evaluation approaches. The WOG concluded that the assessment reaffirmed its conclusion that the issue is not an immediate safety concern, and that it is appropriate to treat baffle bolt cracking as an aging management issue. The risk-informed assessment was performed by the WOG for its use and is not being submitted for staff review and approval.

The WOG discussed the planned alternative to the previous approach that required a staff expedited review and approval of a number of analysis methodology topical reports, for evaluating the acceptability of baffle bolting, by September 15, 1998. The WOG alternative is to use the provisions of 10 CFR 50.59 to support baffle bolt inspection and replacement activities for the 2 and 3 loop lead plants. The WOG requested an NRC approval for the generic use of the 10 CFR 50.59 approach for the WOG plants. The staff declined giving generic approval for the use of the 10 CFR 50.59 process and advised WOG that under the regulations individual licensees make their own determinations on the use of 10 CFR 50.59 without prior NRC approval.

The WOG requested approval of topical reports; WCAP-14748, "Justification for Increasing Break Opening Times in Westinghouse Pressurized Water Reactors" by July 15, 1998, and WCAP-15029, "Westinghouse Methodology for Evaluating the Acceptability of Baffle-Former-Barrel Bolting Distributions Under Falted Load Conditions" by August 1, 1998. The staff indicated that it should be able to provide its safety evaluation of WCAP-17478 by the end of July 1998. However, since the review of WCAP-15029 was not requested until the June 22 letter, the staff indicated that this evaluation may be completed within six months.

The WOG advised the staff that the 3 and 2 loop lead plants, Farley 1 and Point Beach 2, have scheduled baffle bolt-former inspections and replacement activities during their upcoming refueling outages starting on October 3,1998, and November 20, 1998, respectively. The plants will provide a schedule of site activities that the staff may choose to observe.

The WOG presentation also described some design features contained in 16 of the newer 4-loop WOG plants that are considered to reduce the potential for baffle bolt cracking. These features include; core by-pass upflow in the baffle barrel region, former bolt cooling holes, and baffle plate pressure relief holes.

The next planned meeting between WOG and the staff will be scheduled for early next year, after the lead plant bolt inspection and replacement are completed.

Management Changes

On June 30, 1998, Pacific Gas and Electric announced that the Vice President and Plant Manager, Bob Powers has decided to accept an offer from American Electric Power to join them as Senior Vice President and Chief Nuclear Officer. American Electric Power operates D. C. Cook Unit 2. Mr. Powers will leave Diablo Canyon on July 10.

On June 25, 1998, Con Edison announced appointments of James S. Baumstark and A. Alan Blind to Vice President positions effective July 1, 1998. These two individuals will join the two other VPs, VP Nuclear and VP Engineering, who report directly to Buzz Carns, Senior Vice President. Their immediate role is to serve as members of the 5-person Executive Oversite Team (EOT). The other three members are INPO loanees. The EOT is tasked with providing plant coverage and senior level support to plant operations. Their future role is not clear; however, the current VP Engineering, Charles Durkin, will retire at the end of 1998.

On Monday, June 29, 1998, Florida Power & Light announced the promotion of Russell G. (Rusty) West to replace Jim Scarola as St. Lucie Plant Manager effective July 10, 1998.

Mr. West was formerly the Manager of Operations at FPL's Turkey Point plant.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending July 2, 1998

North Anna Independent Spent Fuel Storage Installation License

On June 30, 1998, the Spent Fuel Project Office issued Materials License No. SNM-2507 to the Virginia Electric and Power Company (VEPCO) for the establishment of an independent spent fuel storage installation (ISFSI) at the North Anna Power Station. The license permits the licensee to store North Anna fuel in TN-32 casks at the facility. The TN-32 cask had previously been approved for use, and has been in use since 1996, at VEPCO's Surry ISFSI.

Authorization for AEA Technology/QSA, Inc. to Fabricate OP-660 and OPL-660 Packages

On May 21, 1998, AEA Technology/QSA, Inc. (AEA), formerly Amersham Corporation, submitted its Safety Analysis Report for the Model Nos. OP-660 and OPL-660 packages. This package and its overpack are intended to replace the Model 660 radiography camera which failed its hypothetical accident testing. On June 19, 1998, the Nuclear Regulatory Commission (NRC) issued Certificate of Compliance No. 9228, Revision No. 0, for the Model Nos. OP-660 and OPL-660 packages. On the same date, AEA requested permission to commence fabrication of the OP-660 and OPL-660. By letter dated June 25, 1998, NRC authorized AEA to fabricate the OP-660 and OPL-660. AEA remains under a Confirmatory Action Letter precluding fabrication of any packages that have not successfully passed the hypothetical accident tests.

Presentation to the American Society for Quality

On June 26, 1998, staff from the Spent Fuel Project Office (SFPO) gave a presentation to members of the Energy and Environmental Division of the American Society for Quality (ASQ). This division of ASQ is involved with the power production community. Most of the attendees were quality assurance (QA) managers from various power plants across the country. SFPO discussed the Nuclear Regulatory Commission's experience regarding the inspection of QA program implementation for radioactive material transportation cask certificate holders, independent spent fuel installation licensees, cask vendors, and cask fabricators. Recent inspection findings and related agency enforcement actions were also discussed.

Meeting with U.S. Enrichment Corporation and Lawrence Livermore National Laboratory

On June 24, 1998, staff from the Division of Fuel Cycle Safety and Safeguards and Office of the General Counsel received a tour of the Lawrence Livermore National Laboratory (LLNL). The tour included the Nuclear Waste Yard, the Nova Laser, a briefing on the National Ignition Facility, the National Atmospheric Release Advisory Center, and a briefing on the Fission Energy and Systems Safety Program. On June 25, 1998, they were joined by the Acting Director, Office of Nuclear Material Safety and Safeguards (NMSS), when they received a classified briefing on the Atomic Vapor Laser Isotope Separation (AVLIS) process from the staffs of LLNL and U.S. Enrichment Corporation (USEC). The briefing included a tour of the operational pilot AVLIS facility at LLNL and detailed discussions regarding the enrichment process. The purpose of the tour and trip was to brief NMSS management in preparation for the anticipated licensing review of a full scale AVLIS facility. USEC expects to apply for an AVLIS license in February 1999. Non-site specific submittals, however, are being submitted for the Nuclear Regulatory Commission's review before that date.

U.S. Enrichment Corporation to be Sold Through an Initial Public Offering

On June 29, 1998, the U. S. Enrichment Corporation's (USEC's) board of directors announced that USEC will be privatized through an initial public offering (IPO). USEC privatization was authorized by the Energy Policy Act of 1992. Following approval of the sale decision by the U.S. Department of the Treasury, USEC filed a registration statement with the U.S. Securities & Exchange Commission (SEC) for an IPO of 100-million shares of common stock with a possible additional 10-million shares, all to be offered at an expected range of $13.50 to $16.50 per share. USEC estimates that no more than 10-million shares will be sold outside the U.S. and expects to realize from $1.35-billion to $1.65-billion total proceeds from the common stock offering. In addition to these proceeds, USEC will borrow $550-million, and pay $500-million of this amount to the U.S. Treasury, to makeup the $2-billion the U.S. Department of Treasury wants from the sale.

The privatized company will be known as USEC, Inc. Its new seven-person board will be headed by James Mellor, the retired Chairman and CEO of General Dynamics. Other board members will be Joyce Brown, President of the Fashion Institute of Technology of the State University of New York; Frank Cahouet, Chairman and CEO of Mellon Bank Corp.; John Hall, retired Chairman of Ashland, Inc.; Dan Moore, President of the Dan Moore Co.; William White, President and CEO of Wedge Group, Inc.; and William Timbers, the current USEC CEO.

Implementation of International Atomic Energy Agency Safeguards at the Department of Energy Savannah River Site

On June 22-24, 1998, a staff member from the Division of Fuel Cycle Safety and Safeguards participated in meetings concerning the application of International Atomic Energy Agency (IAEA) safeguards at the Department of Energy's Savannah River Site. During the meetings, discussions were held on the planned approach for the application of IAEA safeguards at a new storage vault being built, as well as at an interim storage site at Savannah River. The material to be stored at these two locations will be plutonium that the U.S. Government has declared as excess to our national security needs.

Peach Bottom Atomic Power Station, Unit 1, Decommissioning

On June 29, 1998, Division of Waste Management staff conducted a public meeting to discuss PECO Energy Company's plans to decommission Peach Bottom Atomic Power Station, Unit 1. The meeting was held at the Delta Area Community Senior Center in Delta, Pennsylvania, and was attended by approximately fifty members of the public.

The meeting included short presentations on the regulatory process for terminating a power reactor license, the status of the Peach Bottom 1 facility, PECO's plans to complete decommissioning of the facility, and the Nuclear Regulatory Commission's inspection oversight of the facility. Members of the public asked a number of questions. The staff and PECO representatives addressed these questions.

ENCLOSURE C

Office of Nuclear Regulatory Research
Items of Interest
Week Ending July 2, 1998

Workshop on Anchor Testing in Cracked Concrete

About 20 members of the anchorage community including manufacturers, researchers, testing laboratory personnel, and building officials, attended a workshop held at the University of Texas (UT) in Austin. The purpose of the workshop was to provide the participants with background information and experience in the key phases of anchorage testing in cracked concrete. The NRC interest in this topic arises from a need for a technical database for regulatory guidance on concrete anchorage. NRR has requested RES to develop a technical basis for guidance on anchorage in concrete, in general, for multiple anchors and for anchors in cracked concrete, in particular. As a result of NRC research, draft requirements have been developed for incorporation into various American Concrete Institute (ACI) codes and the NRC staff has a methodology based on actual data for evaluating anchors in cracked concrete. Also, this information will enable the participants to discuss and ballot specific testing requirements under development in three committees ACI 318-Building Code; 349-Concrete Nuclear Structures; and 355-Anchorage to Concrete). Many of the testing techniques demonstrated and the success of the workshop were the direct result of NRC sponsored research at UT, where some of the cracked anchorage tests performed for the NRC were the first of their kind.

Peer Review of the "ATHEANA" Human Reliability Analysis Method

The Probabilistic Risk Analysis Branch of RES, with the support of Sandia National Laboratories, sponsored an international peer review on ATHEANA, "A Technique for Human Event Analysis." ATHEANA is a next-generation human reliability analysis (HRA) method being developed by RES to more completely and accurately assess human reliability. Development of this HRA method is responsive to the need for improvements to HRA methods to support risk-informed regulation as recognized in the PRA policy statement and is a specific research activity identified in the PRA Implementation Plan. ATHEANA is an HRA method that is context driven (i.e., related to specific combinations of plant conditions) in the identification, analysis, and quantification of human failure events as modeled in PRA and is intended to provide a means for analyzing so-called "errors of commission," especially those associated with inaccurate situation assessment. In addition to its use as an HRA method, ATHEANA is useful in the analysis of operating events.

The peer-review meeting was held on June 11 and 12, 1998 in Seattle, Washington. The meeting also afforded an opportunity for other interested parties to learn about the method, including representatives from Spain, France, Japan, and the Netherlands and from several national laboratories. The review comments from the peer reviewers, along with feedback from others who have reviewed or used the HRA method, were supportive of the method and will be incorporated into a revision of NUREG-1624, "Technical basis and Implementation Guidelines for a Technique for Human Event Analysis (ATHEANA)."

ENCLOSURE D

Office for Analysis and Evaluation of Operational Data
Items of Interest
Week Ending July 2, 1998

Sixth Annual EPRI Terry Turbine User's Group Meeting

On June 30, 1998, John Boardman made a presentation to the Sixth Annual EPRI Terry Turbine User's Group Meeting entitled "NRC Maintenance Rule Implementation and Baseline Inspection Experience." Material presented included background information on the Maintenance Rule, sharing of Terry Turbine corrective action plans, and sources of guidance for Maintenance Rule implementation.

Meeting of the Institute of Electrical and Electronic Engineers Subcommittee 7, Human Factors and Control Facilities

On June 22-24, 1998, Gene Trager participated in a meeting of the Institute of Electrical and Electronics Engineers (IEEE) Subcommittee 7 (SC7), Human Factors and Control Facilities, of the Nuclear Power Engineering Committee (NPEC). A primary function of the subcommittee is to review and revise IEEE guides and standards that can be adopted by the NRC and Industry. The guides and standards are intended to improve human performance at nuclear power plants.

Presentation at FEMA Region VI Conference

A member of IRD was a presenter at the FEMA Region VI Radiological Emergency Preparedness (REP) Conference in Baton Rouge, LA on June 22-24, 1998. The Conference is the oldest of the FEMA REP conferences and was well attended by representatives from State, local, utility and regional Federal organizations within FEMA Region VI. The presentation addressed lessons learned from the Lost Source and Salem 98 exercises, and the practical experience of using the Federal Radiological Emergency Response Plan for responding to the stolen brachytherapy sources event in Greensboro, North Carolina last March.

Event at Davis Besse

At 9:18 p.m. on Wednesday, June 24, Davis Besse declared an Alert due a loss of offsite power that was caused by a tornado. The NRC entered the Standby mode at 10:01 p.m. Standby mode is declared when plant conditions are not well understood with possible safety consequences. Headquarters leads the agency response while the Region begins to assemble a Site Team should the decision be made to escalate the Agency response. The HQ Operations Center was activated and the HQ emergency response team consisting of about 30 people was led by the EDO. Other Executive Team members included NRR and AEOD Directors. The Reactor Safety Team, the Protective Measures Team, the Liaison Team, and the Operations Support Team were staffed. A representative from NOAA also reported to the Operations Center to provide weather forecast for the area. Other Federal agencies that were notified include DOE, FEMA, HHS, EPA and USDA. Contact was maintained with the State of Ohio to ensure that the State was receiving information from the licensee and to provide NRC's independent event assessments. Canada and the IAEA were also notified. The agency went to Monitoring phase at 2:11 a.m. when it was determined that the event was well understood with no likely safety consequences. The lead switched to the Region Base Team and the Headquarters response team was reduced to a support staff. Region III dispatched extra inspectors to the site to provide direct 24 hour coverage of the event. Two Status Summaries and two press releases were issued during the event to other State and Federal agencies, Canadian Federal agencies and the IAEA. The agency exited its response mode at 1:30 p.m. on Friday, June 26.

PRELIMINARY NOTIFICATIONS

1. PNO-III-98-035A, Toledo Edison Co. (Davis Besse 1), ALERT DECLARED DUE TO LOSS OF OFFSITE POWER (UPDATE)
   
   
2. PNO-IV-98-027, Radiographic Specialists, Inc. (Jet Weld Fabrication Facility), DAMAGED IRIDIUM-192 RADIOGRAPHY SOURCE
   
   
3. PNO-IV-98-027A, Radiographic Specialists, Inc. (Jet Weld Fabrication Facility), DAMAGED IRIDIUM-192 RADIOGRAPHY SOURCE, UPDATE-DAMAGED IRIDIUM-192 RADIOGRAPHY SOURCE
   
   
4. PNO-IV-98-027B, Radiographic Specialists, Inc. (Jet Weld Fabrication Facility), DAMAGED IRIDIUM-192 RADIOGRAPHY SOURCE, UPDATE-DAMAGED IRIDIUM-192 RADIOGRAPHY SOURCE

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending July 2, 1998

Acquisition Training

On June 25, 1998, the Division of Contracts and Property management conducted its Acquisition for Project Managers module, "Contract Administration" for 14 project managers (PMs). The module focused on monitoring contractor performance, spending controls, modifying contracts and agreements and remedying contractual problems. Each participant received a course manual that will serve as a reference tool for PMs in performing their day-to-day responsibilities.

On July 1, 1998, the Division of Contracts and Property management conducted its Acquisition for Project Managers module, "Overview of the Acquisition Process," for 10 project managers. This module serves as the primer for other workshops in the acquisition training program. The workshop familiarizes participants with the entire NRC acquisition process including FAR applicability, commercial contracts, and DOE laboratory interagency agreements.

PA System

A new public address system has been installed in OWFN that obviates the need to use the fire alarm system to make building announcements. The new system is linked with the existing system in TWFN so that announcements can be made in both buildings simutaneously.

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending July 2, 1998

Freedom of Information and Privacy Act Requests Received during the 5-Day Period of June 26, 1998 - July 03, 1998:

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending July 2, 1998

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending July 2, 1998

Media Interest

Peter Crane, OGC, was interviewed by CBS-TV on the Commission decision regarding the stockpiling of potassium iodide. Charlie Miller, NRR, was also interviewed by National Public Radio and CNN reported the story as well.

There was considerable press interest in the Millstone restart.

The Pittsburgh Post-Gazette is printing a story about the Beaver Valley shutdown and its preparation for restart.

The Commission's meeting with Commonwealth Edison was attended by four television and eight print reporters at headquarters; local media listened in at the regional office via audioconference.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending July 2, 1998

Commission Correspondence

1. Letter to Senator Olympia Snowe, dated June 23, 1998, concerns NRC's practice of closing meetings (incoming of April 30, 1998, also released).
   
   
2. Letter to Representative Jim Nussle, dated June 23, 1998, concerns proposed revisions to 10 CFR Part 35 regulations on medical use of byproduct material (incoming of May 19, 1998, also released).
   
   
3. Letter to Representative Bob Goodlatte, dated June 24, 1998, concerns expedited review of two license applications for exports of high enriched uranium to Canada for use in medical isotope production (incoming of May 29, 1998, also released).

Federal Register Notices Issued

1. Randall L. Herring (Operator License for Catawba Nuclear Station); Docket No. 55-22234-SP; Notice of Hearing.
   
   
2. Joint Meeting of the ACRS Subcommittees on Plant Operation and on Fire Protection; Notice of Meeting on July 29, 1998.
   
   
3. Advanced Medical Systems, Inc.; Docket No. 30-6055-ML-REN; Notice of Reconstitution (Judge B. Paul Cotter, Jr., as Presiding Officer in place of Judge Marshall E. Miller).

ENCLOSURE P

Region I
Items of Interest
Week Ending July 2, 1998

Take Your Child to Work Day Held in Region I

On June 30, Region I hosted 35 children of staff employees in its annual Take Your child to Work Day. After opening remarks from DRP Director Bill Hehl, the children participated in an interactive videoconference with Chairman Jackson, who described the work of the NRC and the importance of its mission. Following demonstrations on the uses and detection of radiation, and presentations by several Region I employees, the children and their parents enjoyed a pizza lunch before embarking on a tour of the Limerick Nuclear Power Station Visitor's Center.

ENCLOSURE P

Region II
Items of Interest
Week Ending July 2, 1998

BWX Technologies, Inc.

On June 30, the Regional Administrator, accompanied by the Director, DNMS Division, met in Lynchburg, Virginia with BWXT to discuss their Licensee Performance Review (LPR). The LPR identified 14 strengths and two areas needing improvement. The licensee discussed the results of their own performance review and actions they were taking to improve performance.

Florida Power Corporation - Crystal River

On July 2, the Regional Administrator met in Crystal River, Florida with representatives from the Florida Power Corporation to present the results of Crystal River's Systematic Assessment of Licensee Performance (SALP). Crystal River Unit 3 received ratings of Category 2 in all four SALP functional areas which is an improvement in Operations and Engineering from ratings of Category 3 from the previous assessment. Following the presentation, a separate meeting was held with State and local officials to discuss activities at the Crystal River facility.

Subsequent to the SALP presentation, the Regional Administrator held a quarterly press conference.

ENCLOSURE P

Region III
Items of Interest
Week Ending July 2, 1998

Predecisional Enforcement Conference with Dairyland Power Cooperative - La Crosse

On June 30, 1998, a Predecisional Enforcement Conference was conducted in the Region III Office, Lisle, Illinois, between management representatives from Dairyland Power Cooperative and members of the NRC staff. The conference was conducted to discuss Dairyland Power's apparent failure to implement the NRC's maintenance rule at the permanently shut down reactor. During an inspection in May 1998, NRC inspectors found that Dairyland Power apparently continued to use its existing programs after July 1996 (when the rule became effective) in a manner which did not meet the requirements of the maintenance rule.

Management Meeting with Commonwealth Edison Company - LaSalle Nuclear Power Station

On July 1, 1998, a management meeting was conducted at the Mazon Emergency Operations Facility, Mazon, Illinois, between management representatives from Commonwealth Edison Company and members of the NRC staff. The meeting discussed the status and effectiveness of performance improvement activities implemented as part of the LaSalle plant's restart plans. The utility indicated that it is projecting a July 26, 1998, restart date for Unit 1. NRC Region III is beginning a two-week inspection at the LaSalle plant on July 6, 1998, to assess the plant's readiness for restart.

ENCLOSURE P

Region IV
Items of Interest
Week Ending July 2, 1998

Management Meeting with Southern California Edison Company

A management meeting between the Regional Administrator, members of the Region IV and NRR staffs, and the Southern California Edison Company was held in the Region IV office on June 30, 1998. The licensee presented its mid-SALP cycle self-assessment of safety performance at the San Onofre Nuclear Generating Station.

Washington Nuclear Plant Unit 2 Management Meeting and Restart

A management meeting between the Regional Administrator, members of the NRR and Region IV staffs, and the Washington Public Power Supply System was held in the Region IV office on July 2, 1998. As committed by the licensee, the meeting was held to discuss issues associated with the broken fire main and flooding event at WNP-2, along with the licensee's planned approach to plant restart. Subsequent to the management meeting, the licensee completed fire protection system testing that demonstrated that the root cause for the broken fire main had been eliminated. All short-term corrective actions were completed and the licensee commenced restart of the plant.