IR 05000331/2007401

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Official Use Only - Security-Related InformationEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon separation, this page is decontrolled.Official Use Only - Security-Related InformationMay 25, 2007Mr. Gary Van MiddlesworthVice-President FPL Energy Duane Arnold, LLC 3277 DAEC Road Palo, IA 52324-9785

SUBJECT: DUANE ARNOLD ENERGY CENTER, NRC MATERIALCONTROL & ACCOUNTING TI 2515/154 PHASE III INSPECTION REPORT 05000331/2007401(DRP)

Dear Mr. Van Middlesworth:

On April 13, 2007, the U.S. Nuclear Regulatory Commission (NRC) completed aninspection of the material control and accounting (MC&A) safeguards program at the Duane Arnold Energy Center. The inspection was conducted under Phase III of Temporary Instruction 2515/154. The enclosed inspection report documents the inspection results, which were discussed with members of your staff during an exit meeting on April 12, 2007.The inspection examined activities conducted under your license as they relate tosafety and compliance with the Commission's rules and regulations and with the conditions of your license. The inspectors reviewed selected procedures and records, observed storage of special nuclear material, and interviewed personnel. Areas examined during the inspection included physical inventory and accounting records.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.Christine A. Lipa, Chief, BR4, DRP, RIII Name and organization of person making determination.

Date of determination: 05/10/07 Official Use Only - Security Related InformationOfficial Use Only - Security-Related InformationEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon separation, this page is decontrolled.Gary Van Middlesworth-2-Based on the results of this inspection, the NRC has determined that one Severity Level IVviolation of NRC requirements occurred. The violation is being treated as a Non-Cited Violation (NCV) consistent with Section VI.A of the Enforcement Policy. This NCV is described in the subject inspection report. If you contest the violation or significance of the violation, 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 Nuclear Regulatory Commission, Washington DC 20555-0001; and the NRC Senior Resident Inspector at the Duane Arnold Energy Center.In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter willbe available 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 (thePublic Electronic Reading Room). However, because of the sensitive information contained in the enclosure, and in accordance with 10 CFR 2.390, a copy of this letter's enclosure will not be available 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 available electronically for public inspection in the NRC Public Document Room or from NRC's documentsystem ADAMS. If Safeguards Information is necessary to provide an acceptable response, please provide the level of protection described in 10 CFR 73.21. Otherwise, mark your entire response "Security-Related Information - Withhold Under 10 CFR 2.390" and follow the instructions for withholding in 10 CFR 2.390(b)(1).

Official Use Only - Security Related InformationOfficial Use Only - Security-Related InformationEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon separation, this page is decontrolled.Gary Van Middlesworth-3-Should you have any questions concerning this inspection, we will be pleased to discussthem with you.

Sincerely,/RA/Christine A. Lipa, ChiefBranch 4 Division of Reactor ProjectsDocket No. 50-331License No. DPR-49

Enclosure:

Inspection Report 05000331/2007401(DRP)

w/Attachment:

Supplemental Informationcc w/o encl:J. Stall, Senior Vice President, Nuclear and Chief Nuclear Officer J. Bjorseth, Site Director D. Curtland, Plant Manager S. Catron, Manager, Regulatory Affairs D. Blair, Manager, Plant Operations D. McGhee, State Liaison Officer Official Use Only - Security Related InformationOfficial Use Only - Security-Related InformationEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon separation, this page is decontrolled.Gary Van Middlesworth-3-Should you have any questions concerning this inspection, we will be pleased to discussthem with you.

Sincerely,Christine A. Lipa, ChiefBranch 4 Division of Reactor ProjectsDocket No. 50-331License No. DPR-49

Enclosure:

Inspection Report 05000331/2007401(DRP)

w/Attachment:

Supplemental Informationcc w/o encl:J. Stall, Senior Vice President, Nuclear and Chief Nuclear Officer J. Bjorseth, Site Director D. Curtland, Plant Manager S. Catron, Manager, Regulatory Affairs D. Blair, Manager, Plant Operations D. McGhee, State Liaison OfficerDOCUMENT NAME: C:\FileNet\ML071500262.wpdG Publicly AvailableG Non-Publicly AvailableG SensitiveG Non-SensitiveTo receive a copy of this document, indicate in the concurrence box "C" = Copy without attach/encl "E" = Copy with attach/encl "N" = No copyOFFICERIIIRIIINSIRRIIINAMENShah:dtpDMelendez*CALforRcostello*FPeduzziforCLipaDATE05/11/0705/25/0705/24/0705/25/07OFFICIAL RECORD COPY Official Use Only - Security Related InformationOfficial Use Only - Security-Related InformationEnclosure Contains Sensitive UnclassifiedNon-Safeguards Information. Upon separation, this page is decontrolled.Letter to Gary Van Middlesworth from Christine A. Lipa dated May 25, 2007

SUBJECT: DUANE ARNOLD ENERGY CENTER, NRC MATERIALCONTROL & ACCOUNTING TI 2515/154 PHASE III INSPECTION REPORT 05000331/2007401(DRP)ADAMS Distribution w/encl:Branch ChiefSRI RI PE NRR LPM RHC-Ralph Costello MSW2 - Martha Williams DXV1 - Dori Votolato DKRI - Deani Riffle