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SECY-01-0146

August 2, 2001

Contact: R. Haag, OEDO

ENCLOSURE A

Beaver Valley Power Station, Unit Nos. 1 and 2

The staff issued an amendment on July 20, 2001, to First Energy Nuclear Operating Company for Beaver Valley Power Station, Unit Nos. 1 and 2 that approved the (1) implementation of the revised thermal design procedure (RTDP), (2) revisions to Reactor Trip and Engineered Safety Feature Actuation System trip setpoints and allowable values, (3) relocations of certain Technical Specification requirements to the Licensing Requirements Manual (equivalent to a Technical Requirements Manual) and Core Operating Limits Report, (4) addition of a Technical Specification Bases control program, and (5) other revisions including deletion of an unnecessary license condition.

Issuance of the amendment will allow the licensee to operate at a higher power level (as compared to not having issued the RTDP amendment) during the Unit 1 coastdown into an upcoming refueling outage. Also, this amendment facilitates implementation of the 1.4% power uprate which is scheduled to be issued in late FY 2001.

Maine Yankee Atomic Power Company

On July 25, 2001, the staff issued a license amendment and exemption to Maine Yankee. The amendment and exemption will allow Maine Yankee to implement changes to their Physical Security Plan, Guard Training and Qualification Plan, and Safeguards Contingency Plan to address the independent spent fuel storage installation (ISFSI) that Maine Yankee is currently constructing at its site. The Maine Yankee spent fuel pool will continue to meet the physical protection requirements of 10 CFR 73.55, with the exception of the exemptions previously approved by the NRC, until all spent nuclear fuel has been transferred to the onsite ISFSI. Maine Yankee intends to transfer 1432 fuel assemblies to the ISFSI beginning in September 2001. The licensee anticipates it will take approximately 60 weeks to complete the transfer to the 60 NAC UMS spent fuel canisters in which the fuel will be stored.

Staff Holds Public Meetings on the Draft Turkey Point Environmental Impact Statement in Support of License Renewal

The NRC staff participated in two outreach activities last week related to the license renewal application for Turkey Point Units 3 and 4. On Tuesday, July 17, 2001, the staff conducted two meetings to solicit comments from the public on the draft supplemental environmental impact statement (DSEIS) issued on June 12, 2001. The DSEIS is a plant-specific supplement to the "Generic Environmental Impact Statement for License Renewal of Nuclear Power Plants" (NUREG-1437). More than 100 people attended the meetings, including representatives of the NRC staff, Florida Power & Light (FPL), the nuclear industry, State agencies, the press, and members of the public. The comment period ends on September 6, 2001.

In addition, in an effort to improve communication and increase interaction with members of the public, the staff conducted open houses for one hour prior to each meeting session. About 12 groups, including NRC and FPL, participated with displays or brochures and met with members of the public to answer questions about the proposed renewal of the Turkey Point Units 3 and 4 operating licenses.

Proposed Amendment to be Signed by Executive Director for Operations

On July 25, 2001, the Executive Director for Operations approved a proposed amendment for publication in the Federal Register to (1) incorporate by reference the 1997 Addenda, the 1998 Edition, the 1999 Addenda, and the 2000 Addenda of the ASME Boiler and Pressure Vessel Code and the ASME Code for Operation and Maintenance of Nuclear Power Plants, and (2) withdraw the proposed rule to eliminate the 120-month update requirement in 10 CFR 50.55a.

Dominion License Renewal Application Accepted

On May 29, 2001, Virginia Electric and Power Company (Dominion) delivered its application requesting the extension of North Anna and Surry nuclear power stations reactor operating licenses for an additional 20 years beyond their current 40-year term pursuant to 10 CFR Parts 54 and 51.

A notice of acceptance for docketing of the license renewal applications, and an opportunity for a hearing regarding the renewal of the applicant's licenses was forwarded to the Office of the Federal Register for publication on July 23, 2001. OPA will issue a press release upon publication of the notice.

Renewal Demonstration Project Meeting

On July 25, 2001, the staff conducted a public meeting with representatives of the Nuclear Energy Institute(NEI) license renewal task force to discuss progress and issues related to the industry's demonstration project for using the Generic Aging Lessons Learned (GALL) report in license renewal applications The demonstration samples consisted of two different formats submitted as Plant X (SRP format) and Plant Y (Six Column Functional format). During the meeting, the staff and the NEI task force discussed potential effectiveness and efficiencies gained from using each of these two formats and other process issues identified during the request for additional information (RAI) process.

Pebble Bed Modular Reactor (PBMR)

On July 17-18, 2001, members of the staff from NRR, RES, NMSS, OCFO, and OGC held a public meeting with Exelon Generation regarding the Pebble Bed Modular Reactor (PBMR). Exelon provided the staff a list of technical topics to be included in the pre-application review

and a schedule for discussion of the topics at future meetings in August, September, October and November. Exelon will also define the objectives or goals that they are seeking for the pre-application review in each area. The staff and Exelon continued discussions on Exelon's white papers on legal and financial issues and Exelon's proposed licensing approach. To prepare for construction inspections, the staff requested Exelon to provide information and schedules for offsite fabrication of components or modular systems. For the technical areas of the pre-application review, Exelon presented information on industry codes and standards being used for PBMR design and the fuel irradiation test program. Upcoming public meetings are tentatively scheduled for August 9 to continue discussions on the licensing approach and August 15-16 to discuss pre-application review topics, including analytical codes, core design, shutdown cooling and shutdown capability.

ENCLOSURE B

Meeting with J. L. Shepard and Associates

On July 25, 2001, a meeting was held between staff from the Office of Enforcement, the Spent Fuel Project Office, Region IV, the Division of Industrial and Medical Nuclear Safety, the Office of the General Counsel, and J. L. Shepherd and Associates (JLS&A) regarding the NRC's Order of July 3, 2001. The Order withdrew JLS&A's 10 CFR Part 71 Quality Assurance program approval. This NRC action effectively stopped JLS&A from being able to manufacture, repair, and ship Part 71 transportation packages. JLS&A requested this meeting to discuss its planned response to the Order. JLS&A focused its discussion on information that could be used by NRC staff to evaluate JLS&A's response to the Order. JLS&A will provide a written response to the Order by August 13, 2001.

Nuclear Waste Technical Review Board Workshop

On July 19-20, 2001, Division of Waste Management staff attended the Nuclear Waste Technical Review Board (NWTRB) International Workshop on Long-Term Extrapolation of Passive Behavior. The purpose of the workshop was to discuss the long-term behavior of the passive film formed on Alloy 22. This alloy has been proposed for waste packages at the potential Yucca Mountain, Nevada, repository. Scientists from the United Kingdom, France, Japan, Germany, Canada, and the U.S., including a member of the Center for Nuclear Waste Regulatory Analyses, were members of the panel. The NWTRB had previously expressed concern about the long-term behavior of Alloy 22. The international experts discussed corrosion processes that could develop over long time periods. The experts were asked to address what experiments they would propose to assess the validity of the long-term behavior under potential repository conditions.

Safeguards Annual Meeting

From July 14-19, 2001, staff of the Division of Fuel Cycle Safety and Safeguards attended the Institute of Nuclear Materials Management 42nd Annual Meeting in Indian Wells, California. This annual meeting included more than 40 sessions and 300 papers on the operations, policies, and the latest research and development in nuclear materials management. NRC participants presented a paper addressing geological repository safeguards aspects and actively participated in the discussion and exchange of information in the fields of International Safeguards, Material Control and Accountability, Nonproliferation and Arms Control, and Waste Management. The event provided an opportunity to network with other safeguards professionals.

ENCLOSURE C

Human Reliability Analysis for Dry Cask Storage Probabilistic Risk Assessment

Staff from the Offices of RES, NMSS and INEEL participated in a site visit on July 16 - 23 to observe and collect data for the analysis of possible human errors during the dry cask storage process for spent fuel. Human error probabilities will be estimated and be used in the assessment of initiating event frequencies (such as cask drops) for the dry cask storage probabilistic risk assessment being performed by RES at the request of NMSS. The plant process was observed starting with the loading of the canister through transport of the loaded storage cask to the onsite Independent Spent Fuel Storage Facility (ISFSI) pad for storage. In addition to loading, the following steps in the process were observed: verification of the chosen fuel assemblies, withdrawal of the cask from the pool, welding the canister lid, draining of the canister and backfilling with helium, welding of the canister vent and drain plates and sealing ring, changeout of the transfer cask pool lid to the transfer lid, transfer of the cask from the 228' level to the 130' level, transfer of the canister from the transfer cask to the storage cask, movement of the storage cask out of the Reactor Building, and transfer to the ISFSI by the transporter (tracked vehicle). The INEEL human reliability analysts reviewed the procedures covering these activities, and they also had discussions with the plant staff and contractors (e.g., I&C technicians, refueling bridge operators, bridge crane operator) performing these activities. The information gathered by the INEEL contractors will enable them to analyze the process for human errors and provide an estimate of the human error probability using fault tree methodology. These results will be integrated into the overall PRA for dry cask storage of spent fuel.

National Academy of Sciences Workshop on the Performance of Engineered Systems for Waste Disposal

The Board on Earth Sciences and Resources (BESR), National Research Council, National Academy of Sciences(NAS), based on technical discussions with RES, organized and conducted a workshop, "Safeguarding the Future: Assessing the Performance of Engineered Containment Systems for Waste Disposal", on July 19-20, in Washington DC. The purpose of the workshop was to, (i) determine and evaluate the current state of knowledge on the effective life of engineered containment systems for hazardous chemical and radioactive waste over a wide range of environmental situations, (ii) assess and review procedures for evaluating continued performance of the engineered barriers including monitoring and surveillance and (iii) discuss compliance with regulatory standards and needed research and development. RES staff presented information on a methodology that uses a risk informed systems analysis approach for evaluating engineered system performance.

Significant observations from the workshop were that (i) engineered barrier systems that are designed to behave like the undisturbed environmental system tend to perform well, (ii) natural analogs provide clues to understanding long-term performance of barriers, (iii) redundant systems are less sensitive to defects, (iv) integrated engineered systems design, modeling and construction coupled with performance monitoring is needed, (v) performance analysis tools should consider both flow and mass transport, and (vi) long-term performance data is needed to confirm both natural and engineered system performance. NAS staff will use the information from the presentations and discussions at the workshop to develop a proposal to convene an NAS experts committee to document and formulate lessons learned and insights on the performance of engineered systems for waste disposal. RES staff will follow the progress of this NAS activity to determine its possible regulatory implications.

ENCLOSURE D

Preliminary Notifications

1. PNO-I-01-018, Washington Hospital Center, MEDICAL MISADMINISTRATION OF IODINE 131.

2. PNO-II-01-020A, Jaca & Sierra Testing Labs, UPDATE-STOLEN PORTABLE MOISTURE/DENSITY GAUGE.

3. PNO-II-01-024, Southern Nuclear Operating Company, NOTICE OF UNUSUAL EVENT DECLARED FOR LOW COOLING WATER INTAKE STRUCTURE LEVEL.

4. PNO-II-01-025, American Ecology Recycle Center, MISSING STRONTIUM-90 SOURCES.

5.  PNO-III-00-019B, Nuclear Management Co. (Palisades), SMALL LEAK IN CONTROL ROD DRIVE MECHANISM PRESSURE HOUSING (SECOND UPDATE).

ENCLOSURE F

Acquisition Training

On July 24, 2001, the Division of Contracts and Property Management sponsored a mandatory Acquisition for Certification and Training Program module entitled "Developing the Independent Government Cost Estimate" with 39 attendees. This half-day (a.m.) module focuses on the importance of establishing an independent Government cost estimate, the mechanics of the process, and components which can be used in its development.

On July 26, 2001, the Division of Contracts and Property Management, in conjunction with the Office of Human Resources, sponsored a mandatory Acquisition Certification and Training Program module entitled "Contract Administration" with 43 attendees. This all-day module focuses on monitoring contractor performance, spending controls, modifying contracts and agreements, and remedying contractual problems. Each participant receives a course manual that serves as a reference tool for project managers in performing their day-to-day responsibilities.

ENCLOSURE G

Freedom of Information and Privacy Act Requests received during the Period of July 13, 2001 through July 19, 2001:

ENCLOSURE I

Guest Appearance by Jon Lobe on Fedtalk Radio to Discuss Employee Assistance Programs

On July 28, 2001, Jon K. Lobe, Manager, Employee Assistance & Wellness Services, at the

U. S. NRC, was the guest on FEDtalk Radio. He discussed the Employee Assistance Programs and related issues such as confidentiality. The show was hosted by Diana Veilleux and Anjali Kumar, who are attorneys at the law firm of Shaw, Bransford, Veilleux and Roth.

FEDtalk airs every Saturday at 10:00 a.m. (Eastern Time) on WUST 1120AM in the Washington, D.C. Metropolitan Area. Listeners anywhere in the country may tune into FEDtalk on the Internet by visiting the WUST Website at http://www.wust1120.com and clicking on "Listen Live." Listeners are encouraged to call in during the show with questions or comments at 703-534-9878 or toll-free at 1-866-333-8550.

* Effective 07/25/01
** Transferring from Region I

ENCLOSURE L

NRC/Wisconsin Exchange-of-Information Meeting on the Agreement States Program

On Tuesday July 24, 2001, staff from the Office of State and Tribal Programs and Region III briefed Wisconsin Public Health Officials on the Agreement States Program. Discussions were held on the history of the Atomic Energy Act as it relates to State regulatory control, the types of Agreements, and pre and post signing activities. The staff detailed the steps required for Wisconsin to enter into an Agreement with NRC and the time-line for processing its Agreement application. The Wisconsin Radiation Control Program staff discussed the status of their efforts to establish an Agreement State Program including, authorizing statutes, regulations, staffing and training, planned inspections and licensing casework, and the development of program policies and procedures.

Senior managers in the Division of Public Health, who participated in the meeting, noted the significant efforts of the Division to hire and train staff, and to complete their Agreement application. They were well informed and fully supportive of efforts by the Radiation Control Program to achieve Agreement State status. NRC staff also commented on the noteworthy progress made by the Wisconsin staff over the past 6-months.

ENCLOSURE M

Media Interest

U.S. News & World Report is preparing a story about the OSRE and SPA programs.

There was media interest in the Baltimore tunnel fire and its implications for nuclear waste transport.

ENCLOSURE N

Brazilian Visitor at NRC: Dr. Ivan Salati, CNEN

On July 23-24, Dr. Ivan Salati de Almeida, Superintendent Licensing and Control, Comissao Nacional de Energia Nuclear (CNEN), Brazil visited NRC and met with representatives from NRR, NMSS, OIP and OPA. The purpose of Dr. Salati's visit was to re-establish cooperative opportunities between the United States and Brazil. During the visit, Dr. Salati identified specific areas in which he was interested in developing a mutually beneficial exchange.

Visit of Helen Leiser, UK Director of Nuclear Industries

Helen Leiser, Director of Nuclear Industries in the UK Department of Trade and Industry, visited NRC on July 25 to meet with Commissioners and senior program office directors and staff.

Ms. Leiser was most interested in NRC's current activities on the licensing of new plant designs, and how NRC sees the prospects for nuclear power for future energy development in the U.S. Other discussion topics included progress of the decision for, and licensing activities at NRC related to Yucca Mountain; similarities and differences between NRC and UK-NII inspection and licensing practices; US and UK activities related to greenhouse gas reduction and the practicality of alternative energy sources; and ways to increase public confidence in national licensing processes.

ENCLOSURE O

Commission Correspondence

1. Letter to Michael O. Leavitt, Governor of Utah, dated July 20, 2001, provides response to intent to pursue an amended Agreement with the U.S. NRC concerning the transfer of regulatory authority for control of uranium mills and disposal of the resulting wastes to the State of Utah.

Federal Register Notices Issued

1. ACRS Subcommittee on Thermal-Hydraulic Phenomena; Notice of Meeting

REGION I

Predecisional Enforcement Conference with SMI East Coast Medical Waste, Inc.

On July 25, 2001, a closed predecisional enforcement conference was held with SMI East Coast Medical Waste, Inc., of Morrisville, PA. The purpose of the conference was to discuss the findings of an NRC inspection conducted on December 31, 1997, of activities that occurred following an event on October 29, 1997, at the Arthur Brisbane Child Treatment Center, and a subsequent investigation conducted by the NRC Office of Investigations. Enforcement action is pending.

REGION II

Southern Nuclear Operating Company - Predecisional Enforcement and Regulatory Conference

On July 23, Region II held a closed Predecisional Enforcement and a Regulatory Conference with Southern Nuclear Operating Company. The purpose of the Enforcement Conference was to discuss an apparent violation involving changes to the Farley Security Plan which decreased the Plan's effectiveness and were not previously approved by the Commission, thus potentially impacting the NRC's ability to perform its regulatory function. The purpose of the Regulatory Conference was to discuss the results of the Operational Safeguards Response Evaluation force-on-force exercises done in July 2000.

REGION III

NRC and Westinghouse Electric Co. Officials Meet to Discuss Missouri Fuel Facility

On Monday, July 23, NRC staff members met with Westinghouse Electric Co. officials in Hematite, Missouri, to discuss recent inspection findings, the licensee's new organizational structure, and equipment demobilization activities at the company's fuel processing facility in Hematite. The company has closed the facility, formerly known as the ABB-Combustion Engineering plant. About 40 people attended the meeting which was open to public observation, including four officials from the State of Missouri and three county commissioners.

D.C. Cook Predecisional Enforcement Conference

On Tuesday, July 24, NRC staff members met with American Electric Power Co. officials at the regional office for a predecisional enforcement conference. The purpose of the conference was to discuss an apparent violation involving one of the licensee's contractors - Crane Nuclear Inc. - and whether the contractor discriminated against two mechanical maintenance technicians. Consistent with NRC policy for employment discrimination cases, the conference was closed to the public.

Employee Performance Training for Supervisors

About 20 Region III managers and supervisors, including the deputy regional administrator, attended an employee performance training session on Tuesday, July 24, and Wednesday, July 25, in the regional office. The region-sponsored training session was put on by FPMI Communications, Inc. and included a session featuring Mike Fox, Chief of Organization and Labor Relations, who talked to the group about changes in the agency's new labor contract.

ENCLOSURE R

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