IR 05000255/1994005
| ML18059B144 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 08/17/1994 |
| From: | Martin J NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III) |
| To: | Fenech R CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| Shared Package | |
| ML18059B145 | List: |
| References | |
| EA-94-059, EA-94-59, NUDOCS 9408230025 | |
| Download: ML18059B144 (4) | |
Text
'-t.P.I' REG111 _
UNITED STATES
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¥0 NUCLEAR REGULATORY COMMISSION REGION Ill 801 WARRENVILLE ROAD LISLE, IUINOIS 60532-4351
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Docket No. 50-255 License No. DPR-20 EA 94-059 Consumers Power Company ATTN:
Mr. Robert Vice President - Nuclear Operations 1945 West Parnall Road Jackson, Michigan 49201
Dear Mr. Fenech:
August 17, 1994 SUBJECT:
NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY
$25,000 (INSPECTION REPORT NO. 50-255/94005(DRSS))
This refers to the inspection conducted from March 1 through April 21, 1994, at Palisades Nuclear Plant. The purpose of the inspection was to review the circumstances surrounding your discovery that certain Safeguards Information was not being protected and/or controlled as required.
You reported your initial findings to the NRC by telephone on January 28, 1994. During the NRC inspection, violations of NRC requirements were identified and a report documenting this inspection was sent to you by letter dated May 11, 1994.
An enforcement conference was held on June 9, 1994, to discuss the apparent violations, their causes, and your corrective actions.
Section I of the enclosed Notice of Violation (Notice) describes four violations concerning the processing of Safeguards Information on automatic data processing (ADP) systems located outside the licensee's facility, transmitting Safeguards Information over unprotected teleconununications circuits, and failure to properly store and mark Safeguards Information located outside the protected area.
The Safeguards Information included the approved Security Plan, the Security Contingency Plan, implementing procedures, and electrical drawings of security equipment. This information was significant in that it could have provided an adversary an advantage in attempting an act of radiological sabotage.
The root causes of the violations included your failure to address and audit the protection of Safeguards Information in your ADP systems as you upgraded your computers, your failure to establish a single point of accountability for Safeguards Information, and a lack of refresher training for personnel in the handling and protection of Safeguards Information. Although there was no evidence to indicate that a loss or theft of Safeguards Information occurred, the length of time that the conditions existed and the fact that access to the -
system was available to over 1000 terminals created a significant vulnerability with respect to the Safeguards Information. Therefore, in accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions", (Enforcement Policy), 10 CFR Part 2, Appendix C, these violations are classified in the aggregate as a Severity Level III problem.
To emphasize the need for increased management oversight 9408230025 940817 PDR ADOCK 05000255
PDR of the protection of
Consumers Power Company
Safeguards Information, I have been authorized, after consultation with the Director, Office of Enforcement, to issue the enclosed Notice of Violation and Proposed Imposition of Civil Penalty in the amount of $25,000 for the Severity Level III problem.
The base value of a civil penalty for a Severity Level III problem is $50,000.
In determining the amount of the civil penalty; the adjustment factors in Section VI.B.2 of the Enforcement Policy were considered as follows.
The amount of the base civil penalty was mitigated by 50% due to your identification of the violations and was further mitigated 50% because of your comprehensive corrective actions.
We considered your past poor performance in general; in recognition of the recent managerial changes you have made in an attempt to correct overall poor performance at Palisades, we have not escalate.d this civil penalty for past poor performance.
However, the amount of the base civil penalty was escalated 50% for duration because of the length of time the problem existed at your facility, increasing the opportunities for unauthorized access to Safeguards Information.
The other factors were considered and no other escalation was considered appropriate.
On balance, the base civil penalty is mitigated by 50%, resulting in a civil penalty of
$25,000.
Section II of the Notice describes two violations involving the failure to properly store and mark Safeguards Information located inside the protected area.
Each violation was categorized at Severity Level IV because failure to provide adequate protection for Safeguards Information while it is inside the protected area is considered less significant than failure to provide adequate protection while the Safeguards Information is outside the protected area.
You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response.
In your response, you should document the specific actions taken and any additional actions you plan to prevent recurrence. After reviewing your response to this Notice, including your proposed corrective actions and the results of future inspections, the NRC will determine whether further NRC enforcement action is necessary to ensure compliance with NRC regulatory requirements.
In accordance with Io* CFR-2. 790* of the NRC' s a Rules of. Practice, a. a copy.of this l~tter, its enclosure, and your response will be placed in the NRC Public Document Room (PDR).
To the extent possible, your response should not include any personal privacy, proprietary, or safeguards information so that it can be placed in the PDR without redaction. However, if you find it necessary to include such information, you should clearly indicate the specific information that you desire not to be placed in the PDR, and provide the legal basis to support your request for withholding the information from the public.
Consumers Power Company
The response directed by this letter and the enclosed Notice are not subject to the clearance procedures of the Office of Management and Budget as required by the Paperwork Reduction Act of 19 lie Law No.96-511.
Enclosure:
Notice of Violation and Proposed Imposition of Civil Penalty cc w/enclosure:
Thomas Palmisano, General Manager David W. Rogers, Safety and Licensing Director OC/LFDCB Resident Inspector, RIII James R. Padgett, Michigan Public Service Conunission Michigan Department of Public Health Department of Attorney General {MI)
Palisades, LPM, NRR SRI, Big Rock Point G. E. Grant, RIII S. Stein, SRS
!PAS {E-Mail)
John B. Martin Regional Administrator
Consumers Power Company DISTRIBUTION:
PDR SECY CA JTaylor, EDO JMilhoan, DEDR Jlieberman, OE LChandler, OGC JGoldberg, OGC WRussell, NRR RZimmerman, NRR LTremper, OC Enforcement Coordinators RI, RII, RIV, WCFO Flngram, GPA/PA OWil 1 hms, OIG JFitzgerald, 01 EJordan, AEOO Day File EA File
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