IR 05000219/2024003
| ML25049A241 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek |
| Issue date: | 02/20/2025 |
| From: | Eve E Decommissioning, ISFSI, and Reactor Health Physics Branch |
| To: | Trice K Holtec Decommissioning International |
| References | |
| EA-2024-140 IR 2024003, IR 2024004 | |
| Download: ML25049A241 (1) | |
Text
February 20, 2025
SUBJECT:
HOLTEC DECOMMISSIONING INTERNATIONAL, LLC, OYSTER CREEK NUCLEAR GENERATING STATION - NRC INSPECTION REPORT NO.
05000219/2024003 & 2024004 AND EXERCISE OF ENFORCEMENT DISCRETION
Dear Kelly Trice:
On December 31, 2024, the U.S. Nuclear Regulatory Commission (NRC) completed an inspection under Inspection Manual Chapter 2561, Decommissioning Power Reactor Inspection Program, at the permanently shut down Oyster Creek Nuclear Generating Station (Oyster Creek). The inspection examined activities conducted under your license as they relate to safety and compliance with the Commissions rules and regulations and the conditions of your license.
The inspection consisted of observations by the inspectors, interviews with site personnel, a review of procedures and records, and plant walk-downs. The results of this inspection were discussed with Jeffrey Dostal, Site Vice President, and other members of your staff on January 30, 2025, and are described in the enclosed report.
Based on the results of the inspection, the NRC determined that a violation of NRC requirements occurred involving inappropriate decommissioning trust fund (DTF) expenditures.
However, after considering the facts and circumstances of the issue, and in consultation with the Director of the NRCs Office of Enforcement, the NRC is exercising enforcement discretion in accordance with Section 3.3 of the Enforcement Policy, Violations Identified Because of Previous Enforcement Action. Therefore, the NRC is not pursuing any enforcement action for this violation.
In accordance with Title 10 of the Code of Federal Regulations (10 CFR) 2.390 of the NRCs Rules of Practice, a copy of this letter and its enclosure, and your response (if any) will be made available electronically for public inspection in the NRC Public Document Room or from the NRC document system (ADAMS), accessible from the NRC website at http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response should not include any personal privacy, proprietary, or safeguards information so that it can be made available to the public without redaction. No reply to this letter is required. Please contact Andrew Taverna of my staff at (610) 337-5119 if you have any questions regarding this matter.
Sincerely, Elise Eve, Team Leader Decommissioning Team Decommissioning, ISFSI, and Reactor Health Physics Branch Division of Radiological Safety and Security
Docket No: 05000219 License No: DPR-16 cc w/encl:
Distribution via ListServ Enclosure:
Inspection Report
Nos. 05000219/2024003 &
05000219/2024004 w/Attachment
ELISE EVE
Digitally signed by ELISE
EVE
Date: 2025.02.20
09:53:13 -05'00'
EXECUTIVE SUMMARY
Holtec Decommissioning International, LLC (HDI)
Oyster Creek Nuclear Generating Station (Oyster Creek)
NRC Inspection Report Nos. 05000219/2024003 & 05000219/2024004
A routine announced decommissioning inspection was completed on December 31, 2024, at the permanently shut down Oyster Creek. A combination of on-site and remote inspection activities was performed over the inspection period. On-site inspection activities were conducted on July 22 - 25, September 23 - 26, and November 12 - 14. The inspection included safety reviews, design changes, and modifications at permanently shutdown reactors, problem identification and resolution, decommissioning performance, and status reviews; occupational radiation exposure; radioactive waste treatment, and effluent and environmental monitoring, and solid radioactive waste management and transportation of radioactive materials. The inspection consisted of observations by the inspectors, interviews with site personnel, a review of procedures and records, and plant walk-downs. The U.S. Nuclear Regulatory Commissions (NRC) program for overseeing the safe decommissioning of a shutdown nuclear power reactor is described in Inspection Manual Chapter (IMC) 2561, Decommissioning Power Reactor Inspection Program.
List of Violations
The NRC determined that a violation of NRC requirements occurred associated with decommissioning trust fund (DTF) expenditures, however following a review of the facts and circumstances the NRC determined it was appropriate to exercise discretion consistent with Section 3.3 of the Enforcement Policy, Violations Identified Because of Previous Enforcement Action (Section 2.7).
REPORT DETAILS
1.0 Background
On September 25, 2018, Oyster Creek certified the permanent removal of fuel from the reactor vessel (Agencywide Document Access and Management System (ADAMS)
Accession No. ML18268A258). This met the requirements of 10 CFR 50.82(a)(1)(i) and 50.82(a)(1)(ii). On October 1, 2018, the NRC notified the licensee that the Operating Reactor Assessment Program had ceased, and that implementation of the Decommissioning Power Reactor Inspection Program would begin on October 1, 2018 (ADAMS Accession No. ML18274A221). On July 1, 2019, an amended license was issued transferring the license from Exelon Generation Co., LLC to Holtec Decommissioning International, LLC (ADAMS Accession No. ML19164A157). Oyster Creek is currently in the Actively Decommissioning, No Fuel in the Spent Fuel Pool (SFP) phase of decommissioning as described in IMC 2561.
2.0 Active Decommissioning Performance and Status Review
The inspectors performed on-site decommissioning inspection activities July 22 - 25, September 23 - 26, and November 12 - 14, 2024, supplemented by in-office reviews and periodic phone calls during the inspection period. The inspection consisted of observations by the inspectors, interviews with site personnel, a review of procedures and records, and plant walk-downs.
2.1 Inspection Procedure 84750, Radioactive Waste Treatment, and Effluent and Environmental Monitoring
a. Inspection Scope
The inspectors reviewed activities and documentation associated with radioactive effluent control and the radiological environmental monitoring program (REMP) to assess the effectiveness of site radiation protection programs, and to determine if activities and documentation associated with effluent and environmental monitoring programs were effectively controlled, monitored, and quantified releases of radioactive materials in liquid and gaseous forms to the environment. The inspectors accompanied site personnel on walk-downs of liquid processing systems, discharge points to observe collection methods and to determine the material condition of equipment. The inspectors accompanied site personnel during the collection of environmental samples to determine if sampling techniques were in accordance with procedures. Additionally, the inspectors looked at select air monitoring stations to determine accessibility, material condition, and whether they were located as described in the Off-Site Dose Calculation Manual (ODCM). The inspectors reviewed procedures, the annual REMP report, the annual radioactive effluent report, and the ODCM. The inspectors reviewed liquid discharge permits to determine if the releases were within the limits specified in the regulations and technical specifications and reviewed the implementation of Oyster Creeks radiological groundwater protection program to determine if it was in accordance with regulatory requirements.
b. Observations and Findings
The inspectors determined that effluent releases to the environment had been properly controlled, monitored, and quantified as required by NRC requirements. The inspectors verified that the annual radiological effluent and the annual REMP reports demonstrated that calculated doses were below regulatory dose criteria of 10 CFR 50, Appendix I.
Additionally, the inspectors verified that environmental samples were collected in accordance with site procedures and effluent sampling equipment, processing systems, were checked and maintained as specified in the ODCM. The inspectors verified sampling stations were accessible and as described in the ODCM.
c. Conclusion
No violations of more than minor safety significance were identified.
2.2 Inspection Procedure 71801, Decommissioning Performance and Status Reviews at Permanently Shutdown Reactors
a. Inspection Scope
The inspectors attended select management meetings, including station oversight committee and management review committee meetings. Inspectors reviewed documentation and met with Oyster Creek management to discuss staffing, training, status of decommissioning and upcoming activities to determine if HDI had conducted activities in accordance with regulatory requirements. The inspectors performed several plant walk-downs to assess field conditions and decommissioning activities by evaluating material condition of structures, systems, and components; housekeeping; system configurations; and worker level of knowledge and procedure use and adherence. These walk-downs included the New Radwaste (NRW) building, reactor building, and the Radiologically Controlled Area (RCA) yard. The inspectors observed select pre-job briefings and associated work activities, including but not limited to the reactor building 119 floor activities that involved clean-up of the cavity and equipment storage pit, hot-work, and obtaining a sample from a tri-nuke filter for characterization.
Additionally, the inspectors observed work in the dry well where recirc motors and mirror insulation were removed.
b. Observations and Findings
Inspectors noted that the site continues to clean-up and prep the 119 floor of the reactor building and prep the NRW for open-air demolition. 2025 activity outlook is to conduct demolition of NRW in spring 2025 and begin vessel segmentation later in the same year.
Ongoing are preparations of the dry well such as removal of recirc motors and penetrations to support vessel segmentation. Inspectors determined organization and staffing were appropriate for the current stage of activities, and that they had appropriate level of knowledge and procedure use and adherence. Inspectors determined based on observations HDI conducted activities in accordance with regulatory requirements.
c. Conclusion
No violations of more than minor safety significance were identified.
2.3 Inspection Procedure 37801, Safety Reviews, Design Changes, and Modifications at Permanently Shutdown Reactors
a. Inspection Scope
The inspectors reviewed a sample of engineering design change documents to determine if HDIs procedures and processes were following the regulations and guidance associated with 10 CFR 50.59.
b. Observations and Findings
Inspectors reviewed engineering changes associated with containment of NRW water that will be generated from demolition activities. Inspectors note that this change will require an update to the sites ODCM. The inspectors determined that the reviewed engineering changes met the regulations and guidance with 10 CFR 50.59.
c. Conclusion
No violations of more than minor safety significance were identified.
2.4 Inspection Procedure 40801, Problem Identification and Resolution at Permanently Shutdown Reactors
a. Inspection Scope
The inspectors attended Holtec meetings, interviewed Oyster Creek personnel, and reviewed a sampling of issues, non-conformances and conditions adverse to quality to assess the implementation and effectiveness of Holtecs Corrective Action Program (CAP). The inspectors reviewed a representative selection of CAP documents to determine if a sufficiently low threshold for problem identification existed, if follow-up evaluations were of sufficient quality, and if Holtec assigned timely and appropriate prioritization for issue resolution commensurate with the significance of the issue.
b. Observations and Findings
The inspectors determined that issues had been identified, entered into the CAP, and evaluated commensurate with their safety significance through document review and discussion. The inspectors noted adequate management engagement during management review committee meetings. The inspectors determined that the site had an appropriate focus on a safety conscious work environment and that employees were free to raise concerns.
c. Conclusion
No violations of more than minor safety significance were identified.
2.5 Inspection Procedure 83750, Occupational Radiation Exposure at Permanently Shutdown Reactors
a. Inspection Scope
The inspectors observed activities, reviewed documentation, and interviewed personnel associated with occupational radiation exposure to evaluate the licensees protection of worker health and safety as well as the staffing of the radiological protection department.
The inspectors conducted site walk-downs, including radiologically controlled areas, to examine and verify radiological postings, and airborne and contamination controls. The inspectors reviewed Radiation Work Permits (RWPs) and As Low As Reasonably Achievable (ALARA) work plans to determine if radiation work activities were pre-planned effectively to limit worker exposure. Inspectors also attended various briefings where radiological and industrial safety during work activities were discussed.
The inspectors observed the radiation protection (RP) coverage during the following work activities:
- (1) Hot-work on 119,
- (2) 119 Cavity clean-up activities,
- (3) sampling of the tri-nuke filter for characterization,
- (4) removal of recirc motors in the dry well,
- (5) removal of mirror insulation in the dry well
- (6) free release survey of the penthouse above NRW. Additionally, the inspectors observed staff donning and doffing protective clothing, using portal exit monitors out of the RCA, and an RP technician perform routine surveys in NRW. During the inspectors walk-down of the reactor building, a sample of instruments were checked for their condition and calibration.
Inspectors observed the receipt and handling of air samples to be counted in the sites chemistry lab. Additionally, the equipment use and process were reviewed from showing results to what additional actions are taken when results greater than site limits.
Inspectors reviewed the sites respiratory program focused on the use of industrial and radiological control. Inspectors discussed with site staff regarding process and procedures of how the site meets both industrial and radiological requirements.
The inspectors reviewed documentation associated with external/internal dosimetry. The inspectors reviewed the 2024 National Voluntary Laboratory Accreditation Program (NVLAP) accreditations for ionizing radiation dosimetry used at Oyster Creek.
Additionally, inspectors observed a demonstration of whole-body count check and calibration documentation.
b. Observations and Findings
The inspectors determined that the RWPs and ALARA work plans were implemented to limit worker exposure. The inspectors determined that RP staff adequately demonstrated knowledge and practice of site procedures and controls during observed work activities and used appropriate equipment during those work activities. Inspectors noted during observations, the RP personnel conducted continuous instrument dose rate measurements, and work areas in both the reactor building and NRW. The licensee plans for the work were commensurate with the risk of the work and associated hazards.
The inspectors determined that selected instruments during walk-downs were in calibration and in working condition.
The inspectors determined the sites personnel dosimeters were processed by an NVLAP accredited laboratory. Internal dosimetry evaluations for the site were appropriate. The use of and calibration of whole-body counter were determined to be appropriate.
Inspectors determined the process and controls for use of respirators for industrial and radiological were appropriate. Additionally, the inspectors determined technician training and qualifications were up to date.
c. Conclusion
No violations of more than minor safety significance were identified.
2.6 Inspection Procedure 86750, Solid Radioactive Waste Management and Transportation of Radioactive Materials
a. Inspection Scope
The inspectors performed walk-downs of radioactive material storage areas to assess the effectiveness of Oyster Creeks handling and storage of radioactive material and to assess conditions of the area. Inspectors observed receipt shipment of intermodals.
Inspectors observed a Department of Transportation (DOT) verification survey being performed by a RP technician.
Additionally, inspectors reviewed documentation associated with the wet hood shipment from Pilgrim to Oyster Creek. Inspectors had discussions with site personnel and reviewed issued reports on the matter.
b. Observations and Findings
The inspectors verified solid radioactive waste was adequately stored and monitored.
The inspectors examined DOT verification survey and determined Oyster Creek personnel were knowledgeable of their duties and responsibilities. The inspectors determined receipt and response of the wet hood shipment were appropriate.
c. Conclusion
No violations of more than minor safety significance were identified.
2.7 Inspection Procedure 92702, Follow-up on Traditional Enforcement Actions Including Violations, Deviations, Confirmatory Action Letters, and Orders
a. Inspection Scope
The inspectors reviewed HDIs response (ML24089A249) and long-term corrective actions to the notice of violation (EA-2024-024) documented in NRC inspection report number 05000219/2023003 (ML24046A124) to determine if the corrective actions and extent of condition were adequate. Review of shorter-term corrective actions was documented in NRC inspection reports 05000219/2024002 AND 07200015/2024001 (ML24239A805).
b. Observations The inspectors reviewed the procedural guidance HDI created for reviewing, separating, and approving invoices for reimbursements from the trust funds. The inspectors verified that a procedure had been written (DSP-RA-005, Nuclear Decommissioning Trust Fund Reimbursement) and determined that, if followed, it would be adequate to ensure compliance with NRC regulations. The inspectors reviewed the initial training on appropriate DTF use for the Project Controls Group. The inspectors determined the training was adequate for its purpose and verified that the training was set up to be recurring. The inspectors reviewed the extent of condition review submitted by HDI to determine if the review was sufficient to identify any previous unauthorized reimbursements to ensure that future expenditures from the DTF meet the requirements of 10 CFR 50.82. The inspectors noted that the extent of condition was performed by an independent evaluator with sufficient experience. The evaluator identified additional examples of unauthorized reimbursements from the Oyster Creek DTFs, including an unaccounted-for charitable contribution, costs being charged to incorrect DTFs, and utility payments to properties that HDI no longer owns, leases, and/or have been using.
The inspectors noted that these unauthorized reimbursements from the Oyster Creek DTFs are violations of NRC requirements. Disposition of this issue is described in the violation section below.
According to HDIs response to the NOV, the independent extent of condition was intended to be a review of all HDI sites DTF reimbursements to verify regulatory compliance. The inspectors noted that the initial extent of condition scope included review of records dating back to April 2022 with reviews further back for charitable contributions and for some of the other identified unauthorized expenditures. The inspectors provided an observation to HDI that the extent of condition review was of limited scope, in that the review did not evaluate of all expenditures in newly identified misuses (i.e., union dues, and costs reimbursed from incorrect DTFs) since being the license holder at Oyster Creek.
HDI entered issue report OYS-04133 into their CAP to track corrective actions as described in the extent of condition report. The corrective actions include reimbursing (with interest) the unauthorized payments identified in the extent of condition to the appropriate DTFs, maintaining a list of off-site properties used to support decommissioning activities to ensure associated charges such as utilities are reimbursable, and establishing a periodic audit of the reimbursement process. The inspectors verified that the reimbursement paperwork was completed.
Violation
10 CFR 50.82(a)(8)(i) states, in part, DTFs may be used by licensees if the withdrawals are for expenses for legitimate decommissioning activities consistent with the definition of decommissioning in § 50.2.
10 CFR 50.2 defines decommissioning as removing a facility or site safely from service and reducing residual radioactivity to a level that permits
- (1) Release of the property for unrestricted use and termination of the license; or
- (2) Release of the property under restricted conditions and termination of the license.
Contrary to the above, from 2020 through 2024, HDI used the Oyster Creek decommissioning trust funds for expenses that were not legitimate decommissioning activities. Specifically, HDI used funds for purposes that were not related to removing the facility or site safely from service and reducing residual activity to a level that permits release of the property for either unrestricted or restricted conditions and termination of the license, such as duplicate union dues withdrawals and an additional charitable contribution.
The inspectors determined this issue constitutes a Severity Level IV violation. However, after considering the facts and circumstances of the issue and in consultation with the NRCs Office of Enforcement the NRC is exercising enforcement discretion consistent with Section 3.3 of the NRC Enforcement Policy, Violations Identified Because of Previous Enforcement Action. Specifically, the NRC considered that these additional inappropriate DTF expenditures were identified as part of an extent of condition the licensee conducted a required corrective action to the to the notice of violation (EA-2024-024) documented in NRC inspection report number 05000219/2023003 (ML24046A124). These inappropriate expenditures resulted from the same root cause of inadequate procedural guidance and are of similar safety significance. The inspectors also noted that HDI wrote a new procedure (DSP-RA-005, Nuclear Decommissioning Trust Fund Reimbursement) for evaluating DTF expenditures as a required corrective action to the previous violation to help address the root cause.
c. Conclusion
The inspectors noted that HDI completed its actions in response to EA-2024-024. The NRC is exercising enforcement discretion in lieu of pursuing any enforcement action for a violation for the additional inappropriate DTF expenditures identified during the extent of condition review, which is documented as enforcement action number EA-2024-138/139/140.
4.0
Exit Meeting Summary
On January 30, 2025, the inspectors presented the inspection results to Jeffrey Dostal, Site Vice President, and other members of the Oyster Creek staff. No proprietary information was retained by the inspectors or documented in this report.
SUPPLEMENTAL INFORMATION
ITEMS OPENED, CLOSED, AND DISCUSSED
Closed
Section
Summary
2.1. b
Continued Review of HDIs Use
of Oyster Creek Decommissioning
Trust Fund
PARTIAL LIST OF DOCUMENTS REVIEWED
Condition Reports
OYS-04102, OYS-04133, OYS-04158, OYS-04171, OYS-04173, OYS-04177, OYS-04187,
OYS-04192, OYS-04142, OYS-04067
Radiological Surveys
YLA-24-1043, YLA-24-1046, YLA-24-1050, N5F-24-823, N5Q-24-865, N5X-24-873,
N3W-24-874, N5E-24-750, N5H-24-864, N5B-24-798, N3W-24-790, N38-24-902,
Miscellaneous
Engineering Change OC-2024-EC-0005
24 NVLAP Certificate
4Q23 QA Report Teledyne Brown Engineering
Oyster Creek Release Permit OCR-23-23, OCR-23-22, OCR-23-21, OCR-23-20
CY-OC-200-101 Rev 2
CY-OC-200-102 Rev 2
Off-site Dose Calculation Manual
Annual Radioactive Effluent Release Report (ARERR)
Annual Radioactive Environmental Operating Report (AREOR)
DTF EOC Summary Report
Review of Contractor Respirator Program