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SECY 98-217

September 18, 1998

Contact: T. Hiltz, OEDO

ENCLOSURE A

Office of Nuclear Reactor Regulation
Items of Interest
Week Ending September 11, 1998

Farley Unit 1

On August 16, 1998, Farley Unit 1 was shut down due to leakage less than the plant Technical Specifications (TS) in the B steam generator (SG). The subsequent inspection revealed the source of leakage to be from two cracks identified in tube - row 25 column 51. One crack was measured by plus point to be 1.2 inches in length with a maximum depth of 90 - 100 percent through-wall. Westinghouse estimates the residual burst pressure of the tube to be less than the safety factors specified in RG 1.121. The licensee's review of eddy current data from the previous inspection indicates missed nonquantifiable indications (NQIs) in the region of the crack. The second crack was found to be a bobbin coil "blind zone" adjacent to an installed sleeve.

Reanalysis of previous inspection data revealed 31 NQIs were missed last outage in SG B. The licensee inspected 20 percent of the tubes in SG B, including the tubes with the 31 identified NQIs, and all blind zones. No other significant (greater than 2 volts) freespan indications were found. However, the licensee did plug 14 tubes, including the tube identified as the leaking tube.

Farley Unit 1 was restarted on September 3, 1998, and reached 100 percent power on September 7, 1998. At about 50 percent power, indications of leakage on SG B were observed on R70B. On the morning of September 8, 1998, with the unit at 100 percent power, the N16 detector for SG B indicated leakage of approximately 30 gpd. Farley Unit 1 is due to shut down on October 3, 1998, for a refueling outage. SGs A and C will be inspected at that time. The October 3, 1998, outage is intended to be the final refueling outage prior to SG replacement. The staff is continuing to review and monitor these inspection activities. A mid-cycle inspection may be warranted.

Nine Mile Point Unit 1

In response to requests from members of the public and local officials, the NRC will meet with the public September 24, 1998, on the campus of the University of New York at Oswego to discuss the licensee's request that the NRC consent to extending the mid-cycle inspection of the Unit 1 core shroud vertical weld cracks until the end of the normal operating cycle (i.e., from 10,600 hot operating hours to 14,500 hot operating hours). The NRC's meeting with the public will be immediately preceded by a public meeting between the NRC and the licensee to discuss technical aspects supporting the licensee's request. The current operating period of 10,600 hours was authorized by the NRC in a letter dated May 8, 1997, addressing a modification to a retaining clip in the core shroud tie rod design in accordance with 10 CFR 50.55a(a)(3)(I), and is currently scheduled to be reached November 25, 1998.

Seabrook 1 Hearing

On September 3, 1998, the Atomic Safety and Licensing Board Panel (ASLBP) issued a Memorandum and Order granting intervention by the Seacoast Anti-Pollution League (SAPL). SAPL is opposing a license amendment request submitted by North Atlantic Energy Service Corporation (NAESCO) that would change the surveillance requirements for Seabrook's steam generator tube inspections from 18 to 24 months. SAPL is opposing the amendment on the basis that it would have adverse offsite consequences to persons within the ten mile Seabrook emergency planning zone. SAPL's contention, in part, is that "...the proposed changes may cause a significant increase in the probability or consequences of an accident previously evaluated, and may involve a significant reduction in the margin of safety, contrary to the requirements of 10 CFR 50.92."

SAPL submitted three other contentions generally relating to increased surveillance intervals which may affect 4 other license amendment requests. These other contentions address increased risk of offsite radiation exposure caused by fuel cladding rupture, increased on-line maintenance, and decreased inspection in high radiation areas. The ASLBP has deferred ruling on these other contentions pending receipt of additional information from the parties. The hearing date has not yet been established.

Browns Ferry Units 2 and 3 - Power Uprate

On September 8, 1998, the staff issued license amendments to allow operation of Browns Ferry Nuclear (BFN) Units 2 and 3 at 3458 Megawatts thermal (MWt). BFN units are currently licensed for operation at a power level of 3293 MWt. This represents a 5% increase in the power level and would add 55 MWe (per unit) to the TVA's grid. TVA plans to operate BFN Unit 3 at the higher power level following its current refueling outage in October 1998, and BFN Unit 2 during its next refuel cycle in 1999.

Millstone Unit 3

On August 25, 1998, the Atomic Safety and Licensing Board (ASLB) ruled that the Citizens Regulatory Commission (CRC) had standing in the CRC's request to intervene in a Millstone Unit 3 license amendment. The proposed license amendment would revise the Millstone Unit 3 licensing basis by eliminating the requirement to have the recirculation spray system (RSS) directly inject into the reactor coolant system following a design basis accident, with the exception of loss-of-coolant accident (LOCA) scenarios involving a long term passive failure. The Millstone Unit 3 licensing basis would maintain the direct injection requirement, as a contingency, for situations where it may be needed - as in the case of a LOCA with a long term passive failure or for beyond design basis scenarios. This modification was performed in 1986, but it was not until the licensee performed a thorough review of the licensing and design basis of the RSS that it recognized this change involved an unreviewed safety question and, therefore, a license amendment request.

The CRC petitioned the NRC for leave to intervene in the license amendment proceeding and in its contentions stated that (1) the license amendment assumes a certain proportion of the RSS coolant will supply the containment spray ring during the LOCA design basis accident; however, since the systems have not been tested, it has not been determined that they will be functional, that is, that the flow will be divided as postulated, and (2) a reduction by half in the RSS flow results in a major change in capacity which requires actual testing. A prehearing conference (conference call) was held on September 3, 1998, to discuss the contentions (Project Manager and SRXB Reviewer attended). The ASLB stated that they would make the final decision concerning the contentions by the end of September.

Hearing on ESF Sump Pump Amendment

On September 2, 1998, the ASLB ruled that the CRC did not have standing in its petition to intervene in a license amendment dated April 1, 1998. The proposed amendment would revise the Millstone Unit 3 licensing basis by adding a new sump pump subsystem in the engineered safety feature (ESF) building to address groundwater inleakage through the containment basemat. In its ruling, the ASLB stated that the petitioner must show how the installation of the new safety-related sump pump subsystem does not address or improperly addresses the problem of groundwater inleakage and how that deficiency will lead to offsite consequences. Since the CRC's intervention filings make no such showing, the ASLB denied the CRC's intervention petition and ruled that the proceeding be terminated. The CRC has 10 days to appeal.

San Onofre Nuclear Generating Station Units 2 and 3

On September 8, 1998, the staff issued an amendment to the SONGS Unit 2 and 3 licenses that granted extensions to the emergency diesel generator (EDG) allowed outage times (AOTs). The amendment was based on a generic Combustion Engineering risk-informed program. The original amendment request, submitted on November 2, 1995, was based in part on the licensee's reliance on a proposed modification that would have allowed the EDGs to be cross-tied between units pursuant to 10 CFR 50.54(x). Following a discussion of staff concerns regarding the conformance of the use of the cross tie to meet the requirements for independence of on-site power sources, the licensee modified their request to remove consideration of the cross-tie. The modified request included risk insights from shutdown conditions that demonstrated a risk reduction in allowing extended EDG AOTs for maintenance at power operations compared to performing the same extended maintenance during shutdowns. The staff completed its review and issued the amendment within six weeks of receiving the modified request.

South Texas Projects Units 1 and 2

On September 15, 1998, from 1p.m. to 4 p.m., Mr. Stephen Rosen, Manager, Risk Management and Industry Relations at South Texas Project Electric Generating Station will present examples of Probabilistic Safety Assessment (PSA) Applications at South Texas Project, Units 1 and 2 (STP) in the TWFN Auditorium. Since risk-informed and performance-based regulations are among NRC's highest priority issues, this presentation will be an excellent opportunity to learn first hand about industry applications of PSA and should be extremely useful as the NRC continues its transition to a risk-informed framework.

The presentation will include discussion on Configuration Risk Management; Extended Allowed Outage Times for emergency AC power, essential cooling water system, and essential chilled water system; and Graded Quality Assurance (QA) processes, results to date, and impact of 10 CFR 50.59 on QA pilot programs.

ENCLOSURE B

Office of Nuclear Material Safety and Safeguards
Items of Interest
Week Ending September 11, 1998

Confirmatory Action Letter Lifted for Arkansas Nuclear One

On September 4, 1998, the Spent Fuel Project Office (SFPO) closed a Confirmatory Action Letter that had been issued to Entergy Operations, Inc. (Entergy), the licensee for Arkansas Nuclear One (ANO), on May 16, 1997, and supplemented on September 5, 1997. In doing so SFPO lifted restrictions involving the loading of spent nuclear fuel into VSC-24 dry storage casks at ANO. In 1998, Entergy plans to load four VSC-24s at ANO. Loading of the first cask is scheduled to begin on September 13, 1998.

Loading of VSC-24 Dry Storage Cask at Point Beach Nuclear Plant

On August 30, 1998, Point Beach Nuclear Plant (PBNP) resumed loading spent fuel into VSC-24 dry storage casks. In September 1997, the Spent Fuel Project Office (SFPO) issued a Confirmatory Action Letter (CAL) to PBNP to document its commitment not to load VSC-24s until problems associated with the cask closure weld were resolved. The CAL was lifted by SFPO on August 13, 1998. On September 7, 1998, the cask closure welds were completed and ultrasonically tested. The ultrasound testing did not identify any unsatisfactory indications. The VSC-24 was moved to the on-site independent spent storage facility on September 10, 1998. This was the first VSC-24 loaded at PBNP since a hydrogen ignition occurred during loading operations in May 1996. PBNP plans to load three additional VSC-24s in 1998.

Nuclear Regulatory Commission/Department of Energy Safeguards Liaison Meeting

On August 31, 1998, the Division of Fuel Cycle Safety and Safeguards and the Office of Administration, Division of Facilities and Security, staff met with their counterparts at the Germantown offices of the Department of Energy, Office of Safeguards and Security, for an exchange of programmatic and technical information.

BWX Technologies Awarded Downblending Contract

On August 31, 1998, BWX Technologies (BWXT) and the U. S. Enrichment Corporation concluded a contract that will have BWXT downblend 50 metric tonnes of high-enriched uranium deemed excess to the nuclear weapons program. The downblending will be performed over a six-year period and will produce low-enriched uranium suitable for use in light water reactors. The contract contains options for purification and additional characterization.

International Symposium on Criteria and Standards for High-Level Waste Disposal

During the week of August 31-September 4, 1998, Division of Waste Management (DWM) staff participated in an International Symposium on Health and Environmental Criteria and Standards for High-Level Waste (HLW) and Spent Fuel Disposal, held at the Royal Swedish Academy of Engineering Sciences in Stockholm, Sweden. Jointly sponsored by the Swedish Radiation Protection Institute, the Environmental Protection Agency (EPA ), and the Stockholm Environmental Institute, the symposium addressed the philosophical and ethical bases for establishing HLW standards, in addition to the technical and risk bases under consideration by international radioactive waste programs. Participants included regulators from Sweden, Finland, Norway, the Netherlands, France, Spain, Russia, Germany, Switzerland, the United Kingdom, and the U.S. (EPA and the Nuclear Regulatory Commission (NRC)). In addition, participants included members of international advisory bodies (International Commission on Radiological Protection and International Atomic Energy Agency), representatives from a wide range of local and national environmental groups, two members of the National Academy of Sciences Committee on the Technical Bases for Yucca Mountain Standards, academicians from a number of universities, and technical contractors and consultants to repository developers.

DWM staff presented an overview of the strategy approved by the Commission earlier this year for developing site-specific disposal regulations for Yucca Mountain (SECY-97-300), and discussed the staff's approach to key technical issues contained in the draft proposed 10 CFR Part 63 regulations that will soon be forwarded for Commission approval. EPA technical staff presented a number of papers on the criteria and certification of the waste isolation pilot plant (WIPP), but was constrained from any discussion of criteria under consideration for Yucca Mountain because of the review status of EPA's criteria. Considerable appreciation was expressed by symposium participants for NRC's participation and willingness to discuss its regulatory approach. Some of the topics which sparked the most intense discussion included: the appropriate risk constraint for HLW disposal; the appropriate time frame for compliance with HLW standards (e.g., 10,000 years); the need to consider, and provide protection for other species and the environment; and the essential role of public involvement and participation in the establishment and ultimate acceptability of HLW disposal standards. In response to a request from NRC staff, EPA representatives agreed to provide information on resources expended by EPA's approach to public outreach during the WIPP certification review. Symposium proceedings will be published later this year.

ENCLOSURE C

Office of Nuclear Regulatory Research
Items of Interest
Week Ending September 11, 1998

Public Stakeholder Meeting held near Chicago

On September 1, 1998, NRC held a one-day public meeting near Chicago, IL for the purpose of soliciting stakeholder input on a variety of topics under NRC consideration. The meeting was attended by staff from NRR, NMSS, AEOD, OGC, and RIII to discuss in a public forum the strategic plan issues identified in the SRM on Direction Setting Initiative 13 (DSI-13), "Role of Industry" and other topics. The meeting included three concurrent breakout sessions to facilitate discussion of:

Approximately 75 persons attended this session featuring a 20 person panel reflecting various industry organizations, standards development organizations (SDOs), and other government agency representatives. Concern was expressed about the timeliness and complexity of the endorsement process along with suggestions for improvement, the need to improve communications, and a strong desire was expressed to have NRC maintain or increase its participation in standard development.

Approximately 50 persons attended this session featuring a 9 person panel reflecting various industry organizations, SDOs, and an environmental interest group. The concept of NRC addressing issues in a proactive manner was well received and pertinent discussion was held on communications issues and process insights on dealing with industry initiatives.

Approximately 30 persons attended this session featuring discussion of the 10 CFR 50.72 and 50.73 rule change in the morning and regulatory effectiveness issues in the afternoon. Concerns, which AEOD agreed to review, were raised regarding the rule change. During the afternoon session, the majority of the participants comments were related to concerns about staff and industry communications.

PRA Certification

RES/DST and NRR/DSSA staff met on September 1, 1998, with NEI, the various Owner's Groups and several utilities to discuss the role of the industry's PRA certification programs in risk-informed applications. It was agreed that the program could provide improved licensees' submittals, help focus NRC staff reviews and reduce potential requests for additional information. Further discussions with NEI are to be held over the next several weeks to further define the role an industry certification program can play in risk-informed regulation.

UT Inspection of Structural Lid Welds on the VSC-24

During the period of August 26-28, RES staff participated in an inspection of VSC-24 spent fuel storage casks at the Palisades plant in support of the Spent Fuel Project Office (SFPO). The inspections were focused on detection and sizing of potential flaws in the structural lid welds on the VSC-24. This inspection was particularly significant in that recently developed ultrasonic testing (UT) methods for inspection of the welds were evaluated and also, potential flaws were evaluated relative to flaw acceptance criteria proposed by the VSC-24 Owners Group and accepted by the NRC staff. The inspections were required by SFPO to provide confirmation of VSC-24 structural integrity in light of several previous incidences of cracking in VSC-24 welds.

Initial data from the inspection are currently being evaluated. Preliminary evaluations have shown a significant number of "small" indications (within the flaw acceptance criteria) which are likely slag inclusions and other discontinuities related to the welding process. Further details from the inspections will be forthcoming shortly. RES staff and Pacific Northwest National Laboratory, our principal NDE contractor, will continue to be involved in assisting SFPO in the evaluation of the inspection results from Palisades and also from subsequent inspections planned for Point Bach and ANO.

These inspections mark the first time that volumetric NDE techniques (such as UT) have been used to examine the structural lid welds on the VSC-24. This work will provide at technical basis for determining whether the UT techniques can be shown to accurately detect and size flaws relevant to the accepted structural integrity criteria.

Regulatory Guides and SRP Chapters Issued

The following five (5) documents have been published, and are currently being distributed. (all five are dated August 1998):

Regulatory Guide 1.175, "An Approach for Plant-Specific, Risk-Informed Decisionmaking: In-service Testing"

Regulatory Guide 1.176, "An Approach for Plant-Specific, Risk-Informed Decisionmaking: Graded Quality Assurance"

Regulatory Guide 1.77, "An Approach for Plant-Specific, Risk-Informed Decisionmaking: Technical Specifications"

Standard Review Plan Chapter 3.97, "Risk-Informed In-service Testing"

Standard Review Plan Chapter 16.1, "Risk-Informed Decisionmaking: Technical Specifications"

ENCLOSURE F

Office of Administration
Items of Interest
Week Ending September 11, 1998

Clarification of the Assessment Requirements for the Siting Criteria and Performance Objective (Part 60)

A document withdrawing a proposed rule that was intended to clarify uncertainties in regulations containing generic criteria governing the disposal of high-level radioactive wastes in geologic repositories was published in the Federal Register on September 8, 1998 (63 FR 47440). The proposed rule was withdrawn because the NRC is developing site-specific disposal regulations for Yucca Mountain, Nevada, consistent with the Energy Policy Act of 1992.

Garage Repair Project

The current phase of the Garage Repair Project remains on schedule and will be completed on September 20, 1998. The next phase begins immediately thereafter and will require the entrance to the OWFN garage be closed for two weeks, from September 22, 1998, through October 5, 1998. During this period, all traffic will enter and exit the garage through the TWFN garage exit. Additional security guards will be on site to facilitate traffic in the garage. A Network Bulletin will be issued the week of September 14, 1998, to inform employees of the entrance closing and the changes that will be in place to accommodate vehicles in the garage.

OWFN - Exterior Marble Panels

On September 10, 1998, a kick-off meeting was held with the engineering company hired to perform a follow-up survey of the exterior marble panels on the OWFN building. The engineer will test approximately 25% of the panels to ensure that there has been no further deterioration in their attachment to the building. The results will be evaluated against the criteria used for the previous repairs to the panels. The work is expected to begin in two weeks and will require swing stages on the sides of the building. A Network Bulletin will be issued informing employees of this work before it begins.

White Flint Complex Security

Beginning September 7, 1998, armed Federal Protective Officers (FPOs) have been assigned to the White Flint complex to supplement the roving FPO patrols that have been coming to the site. The FPOs will remain on site until the NRC Headquarters security guard contractor has completed all requirements necessary to obtain State of Maryland permits to allow the security guards to carry weapons.

Employee Building Satisfaction Survey

On September 11, 1998, an employee building satisfaction survey was distributed to all Headquarters employees. The survey asks employees to rate various building services (e.g., custodial, repairs, work station alterations and security) provided by ADM, as well as the building management staff. The results will help ADM improve the Headquarters work environment. Summary information will be shared with employees in mid-November 1998.

ENCLOSURE G

Chief Information Officer
Items of Interest
Week Ending September 11, 1998

Freedom of Information and Privacy Act Requests received during the 4-Day Period of September 04, 1998 - September 10, 1998:

ENCLOSURE I

Office of Human Resources
Items of Interest
Week Ending September 11, 1998

National Capital Area Combined Federal Campaign Kick Off Attended

On September 10, 1998, Henry Rubin and Duane Potter attended the National Capital Area Combined Federal Campaign Kick Off. The keynote speaker was the Honorable Rodney E. Slater, Secretary of Transportation, who will serve as the 1998 Campaign Chair. The special guest was Terry Morris, who poignantly described how he was greatly assisted by a CFC charity. He will also be the special guest at NRC's CFC Kick Off scheduled for October 8, 1998, at 9:00 a.m. in the Commissioners' Conference Room.

ENCLOSURE M

Office of Public Affairs
Items of Interest
Week Ending September 11, 1998

Media Interest

Tim Martin, AEOD, was interviewed by Sweeps-Feed Production Syndication Co. about the Commission's decision on potassium iodide. Sweeps-Feed produces science and health programs for television syndication.

Region II and HQs received calls on the alleged threats to a nuclear worker at TVA's Watts Bar plant.

There has been press interest on the final design approval of the AP600 standard reactor.

ENCLOSURE N

Office of International Programs
Items of Interest
Week Ending September 11, 1998

Russian Visitor

Alexander Gutsalov, First Deputy Chairman of the Nuclear and Radiation Safety Authority of Russia (GAN), met with the EDO on September 10 to discuss the status of the NRC/GAN assistance program and the implications for NRC of electric power deregulation in the U.S. Mr. Gutsalov was in the U.S. at the invitation of DOE.

ENCLOSURE O

Office of the Secretary
Items of Interest
Week Ending September 11, 1998

Commission Correspondence

1. Letter to Members of Congress, dated August 31, 1998, extends an invitation to attend a ceremony on September 11, 1998, for the presentation of the NRC's Final Design Approval for the AP600 standard nuclear reactor design to Westinghouse Electric Company
   
   
2. Letter to Member of Congress, dated September 2, 1998, extends an invitation to attend a ceremony on September 11, 1998, for the presentation of the NRC's Final Design Approval for the AP600 standard nuclear reactor design to Westinghouse electric Company
   
   
3. Letter to Representative Jerry Kleczka, dated September 3, 1998, concerns the possible revisions to 10 CFR Part 35 (incoming of August 6, 1998 also released)

Federal Register Notices Issued

1. 10 CFR Parts 2 and 51; Streamlined Hearing Process for NRC Approval of License Transfers; Proposed Rule
   
   
2. 10 CFR Part 36; Docket No. PRM-36-1; American National Standards Institute N43.10 Committee; Receipt of Petition for Rulemaking
   
   
3. North Atlantic Energy Service Corporation (Seabrook Station Unit No. 1); Docket No. 50-443-LA-2; Establishment of Atomic Safety and Licensing Board (Cotter/Kelber/Little)
   
   
4. Advisory Committee on Reactor Safeguards; Subcommittee Meeting on Planning and Procedures; Notice of Meeting on September 29, 1998
   
   
5. 10 CFR Part 76; Certification Renewal and Amendment Processes; Proposed Rule

ENCLOSURE P

Region I
Items of Interest
Week Ending September 11, 1998

Management Meeting and Employee Interviews at Connecticut Yankee's Haddam Neck Plant

On September 3-4, 1998, RI Deputy Regional Administrator William Axelson and a team of managers and staff from Region I, NMSS, and NRR met with representatives of the Connecticut Yankee Atomic Power Company's (CYAPCo) Haddam Neck Plant in East Hampton, CT. The visit was performed to interview licensee management and staff due to heightened NRC concerns prompted by a series of problems encountered during preparation and implementation of the reactor coolant system (RCS) decontamination. A followup meeting to discuss licensee actions to deal with these concerns will be scheduled at the Region I Office in the near future.

ENCLOSURE P

Region II
Items of Interest
Week Ending September 11, 1998

Southern Nuclear Operating Company, Inc.

On September 9, 1998, representatives from the Southern Nuclear Operating Company, Inc. in Alabama met in the Regional Office to discuss Technical Specifications and other regulatory issues. The discussion focussed on the relationship between the Technical Specification bases and Improved Technical Specification requirements.

South Carolina Electric and Gas Company - Summer

Regional managers met with representatives of South Carolina Electric and Gas Company on September 11 to present the results of Summer's Systematic Assessment of Licensee Performance. A rating of superior was achieved in all four functional areas, with improvement noted from the past SALP in the Plant Support area. Following the presentation, a meeting was held with State and local officials to discuss activities for the Summer facility.

Southern Nuclear Operating Company - Farley

The Farley Nuclear Plant conducted a biennial Emergency Preparedness Exercise on September 9, 1998, and was evaluated by NRC and FEMA. NRC evaluated the onsite performance as satisfactory. Minor performance issues were identified by the licensee and NRC.

ENCLOSURE P

Region IV
Items of Interest
Week Ending September 11, 1998

River Bend Management Meeting

On September 10, 1998, the Regional Administrator and members of the Region IV staff met with Randy Eddington, the newly assigned Site Vice-President and Dwight Mims, the Plant Manager, to discuss River Bends' performance and other issues of mutual interest. The meeting, which was open to the public, was held in the NRC Regional Office located in Arlington, Texas.

ENCLOSURE R

Office of Congressional Affairs
Items of Interest
Week Ending September 11, 1998