IR 05000331/2006011

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August 7, 2006

Mr. Gary Van MiddlesworthVice-President Duane Arnold Energy Center 3277 DAEC Road Palo, IA 52324-9785

SUBJECT: DUANE ARNOLD ENERGY CENTER NRC SECURITY INSPECTION REPORT 05000331/2006011(DRS)

Dear Mr. Van Middlesworth:

On July 26, 2006, the U.S. Nuclear Regulatory Commission (NRC) completed a securityinspection involving our review of an NRC Office of Investigation Report concerning inaccurateinformation provided to the NRC about the access authorization status of a former supervisor atDuane Arnold Energy Center (DAEC). The investigation also concerned inaccurate information provided to the NRC during a predecisional enforcement conference (PEC) held on June 1, 2004. The enclosed report documents the results of our review of this investigation.The inspection examined activities conducted under your license as they relate to public healthand safety, the common defense and security, and to compliance with the Commission's rules and regulations, orders, and with the conditions of your license. Within these areas, the investigation consisted of selected examination of procedures and representative records, and interviews with personnel.This report documents two findings of very low security significance (i.e., Green as determinedby the Physical Protection Significance Determination Process). The deficiencies were promptly corrected or compensated for, and the plant added the issues to their corrective action process.EXEMPT FROM PUBLIC DISCLOSUREMay be exempt from public release under the Freedom ofInformation Act (5 U.S.C. 552)Exemption number: 5 Nuclear Regulatory Commission review required before publicrelease. Kenneth S. Brooks, RIII/DRS/PSB Name and organization of person making determination.

Date of determination: 07/24/06 Enclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon Separation This Page is Decontrolled. NRC is treating these violations as Non-Cited Violations (NCVs) consistent with Section VI(A) ofthe NRC Enforcement Policy because of the very low security significance of the violations. If you contest these Non-Cited Violations, you should provide a response within 30 days of the date of this inspection report, with the basis for your denial, to the Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington DC 20555-0001; with copies to the Regional Administrator Region III, the Director, Office of Enforcement, United States NuclearRegulatory Commission, Washington, DC 20555-0001; and the NRC Resident Inspector at theDuane Arnold Energy Station.In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will beavailable electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS),accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the PublicElectronic Reading Room). However, because of the security-related information contained in the enclosure, and in accordance with 10 CFR 2.390, a copy of this letter's enclosure will not beavailable for public inspection.In accordance with 10 CFR 2.390(b)(1)(ii), the NRC is waiving the affidavit requirements foryour response, if any. This practice will ensure that your response will not be made availableelectronically for public inspection in the NRC Public document room or from the NRC's document system, ADAMS. If Safeguards Information is necessary to provide an acceptableresponse, please provide the level of protection described in 10 CFR 73.21. Should you have any questions concerning this inspection, we will be pleased to discuss themwith you.

Sincerely,/RA/Kenneth Riemer, ChiefPlant Support Branch Division of Reactor SafetyDocket Nos. 50-331License Nos. DPR-49

Enclosure:

Inspection Report 05000331/2006011(DRS)

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Supplemental InformationSee Attached DistributionEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon Separation This Page is Decontrolled.