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SECY 98-204

August 28, 1998

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending August 21, 1998

Responses for Request for Information in Generic Letter 98-01 (Y2K)

The Instrumentation and Controls Branch (HICB) of the Division of Reactor Controls and Human Factors (DRCH) has received responses from seventy two (72) plants to the request for information contained in Generic Letter 98-01. These responses were due by August 11, 1998, and the intent was to provide information as to whether or not a licensee had initiated a Y2K program and if that program is similar to the one described in NEI/NUSMG 97-07. All responses to date indicate that programs are in place and are similar to NEI/NUSMG 97-07. The staff believes that the remaining responses (32 plants) have been submitted and will likely be similar to the ones received, and this will be confirmed in the near term.

Risk-Informed Inservice Testing Program at Comanche Peak Steam Electric Station

On November 27, 1995, TU Electric, the licensee for the Comanche Peak Steam Electric Station (CPSES), submitted a request to the NRC as part of a pilot plant initiative to utilize a risk-informed inservice testing (RI-IST) program to determine inservice test (IST) frequencies for certain valves and pumps that are categorized as low safety significant. This request represented an alternative to certain IST requirements specified in Section XI of the ASME Boiler and Pressure Vessel Code. In conjunction with its RI-IST program, the licensee also submitted a Relief Request on June 24, 1998, proposing the use of ASME Code Case OMN-1 as an alternative to the quarterly stroke-time testing requirements in the ASME Code for motor-operated valves (MOVs) that may be either high- or low-safety significant.

Based on its review, the NRC staff has determined that the licensee's RI-IST program meets the acceptance guidelines specified in Regulatory Guide 1.175 and, therefore, is acceptable. The NRC staff has also determined that the licensee's request to apply ASME Code Case OMN-1 for MOV inservice testing is acceptable with certain conditions and limitations. In a letter dated August 14, 1998, the NRC staff authorized the licensee's proposed risk-informed IST program as an alternative to the ASME Code Section XI requirements related to the test frequencies and methods used to ensure operational readiness of certain pumps and valves in the CPSES plant, pursuant to 10 CFR 50.55a(a)(3)(I) based on the alternative providing an acceptable level of quality and safety. With respect to the licensee's proposed use of OMN-1, the NRC staff requested that the licensee notify the NRC when it has developed procedures for implementing the code case and also indicated that the licensee will need to follow any limitations or conditions that might be specified by rulemaking when OMN-1 is endorsed in 10 CFR 50.55a. The licensee is also expected to ensure that increases in core damage frequency and/or risk associated with the increased test intervals for MOVs categorized as high-safety significant are small and consistent with the Commission's Safety Goal Policy Statement.

As noted in the NRC staff's letter forwarding the safety evaluation, TU Electric made a substantial commitment in resources to participate in the RI-IST pilot effort. The licensee should be commended for its leadership and commitment in pursuing this first-of-a-kind risk-informed inservice testing initiative to completion.

Revision of ASME Code, Appendix G

On August 13, 1998, ASME Section XI voted to approve a major revision to Appendix G of the Code, involving the substitution of K_IC for K_IA. NRR and RES staff have been closely involved in developing and implementing this code revision. This change, consisting of an enabling code case as well as a Code revision, when finally implemented will provide major relief for operating reactors. PWRs will benefit by "opening up the operating window" for heatup and cool down. A wider operating window has both safety and economic benefits. BWRs will also benefit because pressure tests (the limiting conditions for BWRs) can be conducted at lower temperatures. We expect timely approval by upper level ASME committees, and it is anticipated that the Code Case can be issued by the end of this year. Until we change 50.55a we expect that licensees will be requesting exemptions.

Catawba Nuclear Station

On August 18, 1998, the NRC staff was informed that Catawba Units 1 and 2 were found to have problems with their ice condensers. Unit 1, currently in a maintenance outage, observed the following: (1) missing and incorrectly torqued bolts on the ice condenser door and hinge assemblies; (2) door hinge pin problems; (3) rips in four upper door insulation pads as well as three broken upper door retaining clips; and (4) approximately forty (40) dented ice baskets.

Unit 2, which is currently operating, entered a 14-day Limiting Condition for Operation, due to the discovery of problems similar to those observed at Unit 1 with regard to the intermediate deck door bolting. Region II has dispatched two inspectors to review the licensee's ice condenser remediation activities. NRR is continuing to closely follow these activities.

Farley Units 1 and 2

On August 14, 1998, Unit 1 experienced increased tube leakage exceeding 90 gpd on the 1B steam generator (SG). Trending indicated that the leakage would exceed the Technical Specification allowable value of 140 gpd prior to a scheduled refueling outage beginning October 3, 1998. Unit 1 was shut down on August 16, 1998, for inspections/repairs of the 1B SG and is currently in Mode 5 - Cold Shutdown. The licensee anticipates being in midloop about August 20, 1998. The licensee indicated that the outage would last for 16-25 days, depending on its findings. No core off-load is planned.

Unit 2 is currently operating at 100 percent power and has been on line since returning from its twelfth refueling outage on May 23, 1998.

Southern Nuclear Operating Company (SNC) and IBEW Local 796 have been conducting contract negotiations. A proposed contract was submitted for a vote on August 15, 1998, and rejected by covered employees. The previous contract expired at midnight on August 15, 1998. A new agreement between SNC and the Union was signed on August 18, thus, averting the possibility of a strike.

MidAmerican Energy Company to Merge with CalEnergy

CalEnergy Company, Inc., based in Omaha, Nebraska, has agreed to purchase MidAmerican Energy Holdings Company, parent of MidAmerican Energy Company which owns 25% of the Quad Cities Nuclear Power Station. CalEnergy Company, Inc. is involved in several energy interests throughout the world including power operations in Asia, Europe and the U.S. J. P. Morgan analyst, Kile Rudden, states that this is the first acquisition of a utility by a non-regulated entity. The combined company will retain the name MidAmerican Energy Holdings Company, and will be based in MidAmerican's hometown of Des Moines, Iowa. The merger is subject to NRC approval per 10 CFR 50.80, "Transfer of Licenses."

D.C. Cook Units 1 and 2

On August 19, 1998, the staff held an informal public hearing concerning the 10 CFR 2.206 Petition filed by the Union of Concerned Scientists (UCS) on October 9, 1997, and January 12, 1998, for the D. C. Cook Nuclear Plant. The hearing was chaired by Bruce Boger, Acting Associate Director for Projects. The purpose of the public hearing was to allow the UCS to clarify issues raised in the 10 CFR 2.206 Petition requesting that the operating license be modified, revoked, or suspended until there is reasonable assurance that plant systems are in conformance with design- and licensing-bases requirements. The Licensee also participated in the hearing. Both the Petitioner and the Licensee made presentations to clarify the issues raised in the Petition. The NRC staff asked questions for clarification at the end of the presentations by the UCS and the Licensee. The meeting was well attended by members of the public and the press. The public was offered an opportunity to speak at the end of the presentations. No public comments were received during the hearing.

David Lochbaum and Ann Harris made presentations on behalf of the UCS. The UCS indicated in their presentation that the inspections performed by the NRC and the corrective actions taken by the Licensee had addressed the concerns raised in the 2.206 Petition. In addition, the UCS requested that the NRC issue a Millstone-scale civil penalty based on the inspection findings to emphasize the importance of safe operation within the design bases.

The Licensee stated in their presentation that the restart plan addressed all the concerns raised in the 2.206 Petition. Further, the Licensee stated that the ongoing corrective actions would resolve each issue raised in the Petition.

The staff is in the process of reviewing the information received to prepare a Director's Decision to the Petition.

Management Changes

On August 18, 1998, Entergy Operations, Inc. announced the following management changes. The changes will affect the River Bend Station, the Arkansas Nuclear One, Entergy Operations, Inc., and Entergy Nuclear. Entergy Nuclear was formed last year to offer a variety of management services to other nuclear facilities.

Jerry Yelverton will become the President and Chief Operating Officer for Entergy Nuclear. Mr. Yelverton has been the Executive Vice President and Chief Operating Officer for Entergy Operations, Inc.

John McGaha will become the Executive Vice President and Chief Operating Officer for Entergy Operations, Inc. Mr. McGaha was the Vice President Operations at River Bend Station.

Randy Edington will become the Vice President Operations at River Bend Station. Mr. Edington was the General Manager at the Arkansas Nuclear One.

Craig Anderson will become General Manager at the Arkansas Nuclear One. Mr. Anderson was the Unit 2 Plant Manager.

There have been several management changes at the Quad Cities station.

Mr. Jack Purkis, who was Engineering Projects Manager, has been appointed System Engineering Manager replacing Tom Davey, who left ComEd to pursue other interests.

Mr. Mike McDowell from Entergy (Grand Gulf) will assume the Operations Manager position in September. He will replace Bob Svaleson who will be transitioning to the Shift Operations Supervisor (SOS) position after reactivating his Operations license.

Mr. Bill Harris also from Entergy (Grand Gulf) has been appointed the Senior Staff Assistant to the Senior Vice President and he will join Quad Cities in September.

The Quality and Safety Assessment (Q&SA) organization has been renamed the Site Nuclear Oversite (SNO) organization to become standard with the other ComEd sites. Mr. Jerry Walker, who was acting Manager of Q&SA has relocated to the LaSalle site as the Corrective Action Program Supervisor. Mr. Ken Giadrosich from Entergy (River Bend) station has assumed the position of SNO Manager.

The HP/Chemistry Manager position was also broken up to match a ComEd site standard. Mr. Greg Powell who had been acting HP/Chemistry Manager is now acting Radiation Protection Manager and Mr. Paul Behrens was appointed to the new Chemistry Manager position.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending August 21, 1998

Meeting Regarding Groundwater Cleanup at the Shirley Basin Uranium Mill Site

On August 13, 1998, staff from the Division of Waste Management met with representatives of the Petrotomics Company (Petrotomics), and the Wyoming Department of Environmental Quality (WDEQ) to discuss and resolve issues related to groundwater cleanup at Petrotomics' uranium mill site in Shirley Basin, Wyoming. The main issue is that Petrotomics would not be able to comply with the State of Wyoming groundwater standards, and unlike the Nuclear Regulatory Commission, the WDEQ standards have no risk-based provision such as those contained in 10 CFR Part 40, Appendix A, covering alternate concentration limits. Petrotomics discussed its approach in resolving the WDEQ identified technical issues as well as its plan to work with WDEQ in seeking flexibility in WDEQ's standards at the statutory level. Petrotomics is scheduled to submit its response to the technical issues to WDEQ by the middle of October 1998.

Public Meeting on Implementation of Draft Guidance on Radiological Criteria for License Termination

On August 14, 1998, staff from the Division of Waste Management hosted a public meeting at the Nuclear Regulatory Commission (NRC) Headquarters to discuss the format and content of future public workshops on the implementation of the draft guidance for the rule on Radiological Criteria for License Termination. The meeting was attended by representatives of the Nuclear Energy Institute, Fuel Cycle Facilities Forum, Electric Power Research Institute, Department of Energy (DOE), State of New Jersey, Environmental Protection Agency, and other interested organizations. The purpose of the meeting was to: (1) identify information, data, and research results that industry and other interested parties can provide for NRC consideration during the two year interim use period of the draft guidance; and (2) discuss the various methods for exchanging information in a timely, proactive way over the next two years in order to optimize both the usefulness of the information and the allocation of resources by NRC and industry. Several methods for future interactions were discussed including the use of the NRC web site, periodic video conferences, workshops, and tabletop exercises. In addition, close collaboration between industry and NRC on the lessons learned from test cases was viewed as a useful way to identify the strengths and weaknesses of the draft guidance. The DOE representative indicated that there may also be insights to be gained through case studies of sites in the DOE environmental restoration program. The staff will develop a strategy for future interactions with industry on the implementation of the draft guidance considering a combination of workshops, video conferencing, and the NRC web site, with special emphasis on the review of test cases.

Confirmatory Action Letter Lifted for Point Beach Nuclear Plant

On August 13, 1998, the Spent Fuel Project Office closed a Confirmatory Action Letter that had been issued to Point Beach Nuclear Plant (PBNP) on May 16, 1997, and supplemented on September 5, 1997. In doing so, restrictions were lifted on the loading of spent nuclear fuel into VSC-24 dry storage casks at PBNP. Westinghouse Electric plans to load three VSC-24s at PBNP starting on August 30, 1998.

Spent Fuel Project Office Holds Two Meetings with Holtec International

On August 18, 1998, staff from the Spent Fuel Project Office held two concurrent meetings with Holtec International (Holtec). One meeting was to discuss the proposed technical specifications for the HI-STAR 100 storage cask. The other meeting was to discuss several outstanding questions regarding Holtec's thermal analysis of the HI-STAR 100. The staff is in the process of completing its safety evaluation of the Topical Safety Analysis Report submitted by Holtec for the HI-STAR 100. Several utilities that plan to use the HI-STAR 100 cask system for storage and transportation (should the HI-STAR eventually be approved as a dual-purpose cask) participated in the technical specification discussion. These included: Southern Nuclear, Commonwealth Edison, the New York Power Authority, and Private Fuel Storage, L.L.C. The participation by the utility representatives was quite helpful in ensuring that appropriate technical specifications and license conditions are identified and adopted for the proposed certificate of compliance, pursuant to the general licensing provisions of 10 CFR Part 72. The meeting on thermal questions enabled the staff to move closer to completion of its safety evaluation in this important technical area. If Holtec has demonstrated compliance with all applicable regulatory requirements, the staff plans to issue its draft safety evaluation report and certificate of compliance by September 30, 1998. At that time, the rulemaking process to amend 10 CFR Part 72, Subpart K, to include the HI-STAR 100 as a cask available for use by holders of the general license for dry cask storage will begin.

Quality Assurance Concerns at Department of Energy-Idaho Operations Office TMI-2 Independent Spent Fuel Storage Installation

On August 13, 1998, representatives from the Spent Fuel Project Office met with representatives from the Department of Energy (DOE), Idaho Operations Office (ID), to discuss recent quality control problems at the DOE-ID's TMI-2 Independent Spent Fuel Storage Installation (ISFSI). In the first of two incidents, DOE determined that a significant number of concrete samples on the recently poured ISFSI basemat failed to satisfy design strength requirements. The applicant is currently evaluating whether the basemat can be accepted as-is or if it will require modifications or replacement. In a second incident, a quality assurance (QA) audit by DOE's maintenance and operations contractor determined that a subcontractor, that provided engineering data used as part of the DOE TMI-2 application, had not implemented its QA program since 1992. DOE-ID is taking steps to verify the quality of the engineering data. The staff expressed strong concern that, in these instances, the DOE-ID quality assurance process should have either prevented the lapse in vendor quality control or limited the impact of poor material supplied by a vendor. DOE-ID acknowledged these program weaknesses and described actions it was taking to prevent recurrence.

ENCLOSURE D

Office for Analysis and Evaluation of Operational Data
Items of Interest
Week Ending August 21, 1998

PRELIMINARY NOTIFICATIONS

1. PNO-III-98-039, Dept. of the Army Armament & Chemical Acquisition & Logistics, CHEMICAL AGENT DETECTORS MISSING

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending August 21, 1998

Security Guard Services

Wackenhut, Inc., assumed guard service responsibilities at NRC Headquarters under a new contract which began August 14, 1998. All of the guards from the former contractors (both UIIS and Masters) were hired by Wackenhut and all posts are staffed.

U.S. Enrichment Corporation (USEC)

The Director, DFS, sent an approval letter to USEC on August 18, 1998, regarding NRC's foreign ownership, control or influence (FOCI) review of USEC's proposed privatization through the use of an initial public offering of common stock.

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending August 21, 1998

Freedom of Information and Privacy Act Requests received during the 5-Day Period of August 13, 1998 - August 20, 1998:

Named individual, activities of, FBI referral (FOIA/PA 98-314)

Allegation file, RIII-96-A-0142 (FOIA/PA 98-315)

Check valves in nuclear applications, ORNL/NRC/LTR-97/13 "Performance Histories for Suing, Duo/Double Disc, ...Applications" and Applications Guided for Check Valves by EPRI/NMAC, NIC693 (FOIA/PA 98-316)

Computer Code, Contempt - LT/28 (FOIA/PA-98-317)

Nuclear Energy Services, Danbury, CT, investigation or inspection re: complaints of named individual, circa 1990-1992, request and records released in FOIA 95-191 (FOIA/PA-98-318)

AOV Programs and Instrument Air Systems at Commercial Nuclear Power Plants, draft AEOD report by Dr. H. Ornstein (FOIA/PA-98-319)

IMPAC list (FOIA/PA-98-320)

Named individual, transcripts of interviews taken on 8/18/98 (FOIA/PA-98-321)

Enforcement actions for which a monetary penalty was assessed for 1997, on disk (FOIA/PA-98-322)

Public Service Electric & Gas in Hanscock Bridge, NJ, recent NRC security OSRE evaluation (FOIA/PA-98-323)

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending August 21, 1998

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending August 21, 1998

Media Interest

There were nine print, TV, radio, and wire reporters at Chairman Jackson's briefing at TMI.

Headquarters reported interest in the advisory provided to reactor licensees regarding the monitoring of threat information related to the twin bombings of the U.S. embassies in Africa.

The Chicago Tribune is printing a story on the request for a hearing on a license amendment at Zion regarding its transition from an operating to a decommissioned plant.

ENCLOSURE N

Office of International Programs
Items of Interest
Week Ending August 21, 1998

IAEA Vacancy Notices

The following notices from the International Atomic Energy Agency have been posted on NRC bulletin boards:

Export License Signed

On August 18, the OIP staff issued a license (XCOM1115) to 20^th Century Machine Company in Armada, Michigan, which authorizes the export of reactor components to AECL in Canada for installation into machine systems used for fueling machine and carriage supply for ultimate use in the Qinshan CANDU 6 nuclear power reactors in China.

Visit of Deputy Minister for Economic Affairs, MINATOM, and Co-Director of U.S./Russian International Nuclear Safety Center

On August 18th, Mr. Vladimir G. Vinogradov, newly appointed Deputy Minister for Economic Affairs of the Russian Ministry of Atomic Energy (MINATOM), and Dr. Sergey E. Bugaenko, Russian Co-Director of the U.S./Russian International Nuclear Safety Center (INSC), met with Mr. Carlton R. Stoiber, Director of the Office of International Programs (OIP). Mr. Vinogradov and Dr. Bugaenko provided Mr. Stoiber with an overview of ongoing or planned INSC activities, including activities of potential interest to NRC.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending August 21, 1998

Commission Correspondence

There were no correspondence items released to the public this week.

Federal Register Notices Issued

1. Hydro Resources, Inc.; Docket No. 40-8968-ML; Notice (Limited Appearances; Prehearing Conference; Other Events).

2. Baltimore Gas & Electric Company; Docket Nos. 50-317-LR and 50-318-LR; Establishment of Atomic Safety and Licensing Board (Bollwerk/Kline/Murphy).

ENCLOSURE P

Region I
Items of Interest
Week Ending August 21, 1998

Presentation at Harvard School of Public Health

On August 14, 1998, John Kinneman, DNMS Branch Chief, gave a presentation on "Regulation of Licensees by the NRC" at the Occupational and Environmental Radiation Protection Course at the Harvard School of Public Health. The course was attended by a variety of managers from industry and government organizations.

Unauthorized Distribution of Products by Metorex, Inc.

On August 19, 1998, Region I was informed by the President of Metorex, Inc. that Metorex had distributed a product to general licensees that had not yet been approved by NRC. Metorex had submitted an application to NRC for authorization to distribute the device, but neither the device registry certificate nor the license amendment has been issued. Regional staff conducted an inspection on August 20, 1998 and the Region is planning to issue a Confirmatory Action Letter requiring the licensee to cease distribution and perform an analysis to determine if the devices distributed differ in any way from the device described in the application.

ENCLOSURE P

Region II
Items of Interest
Week Ending August 21, 1998

Duke Energy Corporation - Catawba

Catawba Unit 1 has been shutdown since August 7, 1998, to address ice condenser flow channel blockage and foreign material which was identified during a routine Technical Specification (TS) surveillance. Supplemented with the senior resident inspector from McGuire and the Regional ice condenser specialist, the Catawba resident inspector staff has been closely following the licensee's activities to resolve the issues that have developed over the last several weeks. In addition to the aforementioned flow channel blockage and foreign material issues, other issues which have required resolution include: dented ice baskets; a torn ice basket; intermediate deck door bolting discrepancies; and damage to top deck door insulation blankets and retaining clips.

Although the licensee does not believe that any of these discrepancies would have made the ice condenser inoperable, they have inspected other units for similar issues. Following Unit 1 ice condenser recovery activities, the licensee will focus resources towards resolving intermediate deck door bolting issues that required Unit 2 to enter a 14-day TS action statement that expires on August 31, 1998.

Duke Energy Corporation - McGuire

On August 17, 1998, representatives from Duke Energy Corporation met with NRR and Regional Managers to present a self-assessment of performance for the McGuire Nuclear Station. During this meeting, Duke presented an overall station performance overview for the current SALP cycle, as well as addressed a number of initiatives and results achieved within the areas of plant operations, maintenance, engineering, and plant support.

Oconee Emergency Preparedness Exercise

Oconee Nuclear Station conducted its biennial emergency preparedness exercise on August 18, 1998. The exercise was evaluated by NRC and FEMA. The onsite performance evaluated by the NRC was considered to be satisfactory. Several issues were identified by the licensee and the NRC for improvement.

Tennessee Valley Authority - Sequoyah

On August 20, the Regional Administrator met with TVA management in Region II. The licensee presentation covered the progress that has been made in overall plant performance. Areas discussed included management initiatives, department self-assessments and maintenance activities planned for the Unit 1 refueling outage in September 1998.

ENCLOSURE P

Region IV
Items of Interest
Week Ending August 21, 1998

Meeting Between NRC officials and STP's Engineering Department

On August 20, 1998, members of the STP Nuclear Operating Company design engineering staff met in Region IV to discuss the current status of their efforts pertaining to setpoint calculation problems and other design engineering concerns that have been identified by the NRC. The Regional Administrator and members from both the Division of Reactor Safety and the Division of Reactor Projects attended the licensee's presentation.

Management Meeting at the Cooper Nuclear Station

On August 21, 1998, management representatives of the Cooper Nuclear Station met with NRC managers and staff to discuss the Cooper Engineering Improvement Strategy and Actions to Improve Engineering. NRC staff included in the discussions were the Deputy Director of the Division of Reactor Projects (DRP), the Director of the Division of Reactor Safety, the Director of the Project Directorate IV-1, NRR, the Cooper DRP Branch Chief, and the Senior Resident Inspector.