Information Notice 1991-09, Counterfeiting of Crane Valves

Counterfeiting of Crane Valves

ML072500391
Person / Time
Site:	Palo Verde, River Bend, Diablo Canyon, South Texas, San Onofre, Comanche Peak
Issue date:	09/25/2007
From:	Michael Case NRC/NRR/ADRA/DPR
To:
References
IN-91-009, Rev. 1
Download: ML072500391 (5)

UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF NUCLEAR REACTOR REGULATION

WASHINGTON, D.C. 20555 September 25, 2007 NRC INFORMATION NOTICE 1991-09, REV. 1: COUNTERFEITING OF CRANE VALVES

ADDRESSEES

All holders of operating licenses or construction permits for nuclear power reactors.

PURPOSE

The U.S. Nuclear Regulatory Commission (NRC) is re-issuing this information notice (IN) to

correct IN 1991-09, Counterfeiting of Crane Valves, which was issued on February 5, 1991, to

alert licensees to potential problems with counterfeit valves. This revision supersedes the

original IN in its entirety. It is expected that recipients will review this information for applicability

to their facilities and consider action, as appropriate, to avoid similar problems. However, suggestions contained in this IN do not constitute NRC requirements; therefore, no specific

action or written response is required.

DESCRIPTION OF CIRCUMSTANCES

As a result of information obtained from officials of the U.S. Customs office, and as documented

in the Settlement Agreements resulting from a civil suit brought by the Crane Company and

settled out of court in October 1987, it was determined that counterfeit Crane Company (Crane)

valves were sold to an Atlantic Richfield Company (ARCO) chemical plant near Houston, Texas.

The NRC was informed that ARCO ordered eight 4-inch, 1500-psi, pressure-sealed Crane

valves from the Baytown Supply Co. (Baytown). Baytown ordered the valves from International

Valve Service, Inc. (International), and International ordered the valves from Southern California

Valve Maintenance Company (SCV).

SCV had the valves manufactured in Taiwan. Upon arrival in the United States, the valves bore

the mark SCV. The valves were sent to the Amesse Welding Service (Amesse) where the

name Crane was apparently welded to each valve body.

The valves failed pressure testing performed by ARCO before installation. During the testing, ARCO found newspapers printed with Chinese characters in the valves. An expert on Crane

valves examined the valves and identified them as counterfeit. Six of the valves were repaired

and used by ARCO. The remaining two valves that could not be repaired were returned to SCV.

ML072500391

IN 1991-09, Rev. 1 The NRC verified that the following nuclear power plants did not have SCV, Baytown, or

International on their approved vendor lists: Comanche Peak, River Bend, South Texas Project, Waterford, Palo Verde, and Diablo Canyon. These power plants were selected because they

were located close to one of the three companies listed above and may have done business with

them. Southern California Edison did have a contract with SCV to maintain and repair valves at

the San Onofre Nuclear Generating Station, but has concluded that its established internal work

assignment and control procedures provided adequate assurance of the work performed by

SCV. The NRC does not have any direct evidence that SCV, Baytown, or International provided

counterfeit valves to the U.S. nuclear power industry or violated any NRC regulations.

DISCUSSION

The NRC determined that the SCV list of customers who purchased Crane valves, appended as

Attachment 1, contained numerous vendors that are also on the list of purchasers/suppliers of

CMA International (CMA) of Vancouver, Washington. CMA is the subject of IN No. 88-48, Licensee Report of Defective Refurbished Valves. The inclusion of a company on the SCV

customer list does not mean that the company knowingly or unknowingly supplied counterfeit or

fraudulent products. It should also be noted that SCV was listed as a possible customer of

CMA, through whom licensees may have purchased valves supplied by CMA, as noted in

Attachment 1 to Supplement 2 of IN No. 88-48. Licensees may wish to review the list of SCV

customers in Attachment 1 to confirm the acceptability of procured equipment.

A valve can go through two or more distributors before reaching the end-user facility. A nuclear

power plant could buy a commercial-grade valve from a valve distributor for the purpose of

dedicating the valve for safety-related use. The establishment and verification of procedures to

trace procured equipment and material to the original equipment manufacturer is often an

important prerequisite to meaningful inspection and testing which may be employed in the

dedication process. Inadequate licensee verification of traceability of procured equipment may

result in counterfeit or fraudulent equipment being installed.

This IN requires no specific action or written response. If you have any questions about this

matter, please contact the technical contact listed below or the appropriate NRR project

manager.

IN 1991-09, Rev. 1

CONTACT

This IN requires no specific action or written response. Please direct any questions about this

matter to the technical contact listed below or the appropriate NRR project manager.

/RA by TQuay for/

Michael J. Case, Director

Division of Policy and Rulemaking

Office of Nuclear Reactor Regulation

Technical Contact:

Samir Darbali, NRR/DPR

301-415-1360

e-mail: sxd7@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.

Attachment:

1. List of Customers Who Purchased Crane Valves from Southern

California Valve Maintenance

IN 1991-09, Rev. 1

CONTACT

This IN requires no specific action or written response. Please direct any questions about this

matter to the technical contact listed below or the appropriate NRR project manager.

/RA by TQuay for/

Michael J. Case, Director

Division of Policy and Rulemaking

Office of Nuclear Reactor Regulation

Technical Contact:

Samir Darbali, NRR/DPR

301-415-1360

e-mail: sxd7@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.

Attachment:

1. List of Customers Who Purchased Crane Valves from Southern

California Valve Maintenance

Distribution:

IN Reading File

ADAMS Accession Number: ML072500391 OFFICE PGCB:DPR TECH EDITOR EQVB:DE OGC

NAME SDarbali LCulp PPrescott* for DThatcher Beth Mizuno*

DATE 9/11/07 9/12/07 9/14/07 9/13/07 OFFICE LA:PGCB:DPR PGCB:DPR BC:PGCB:DPR D:DPR

NAME CHawes DBeaulieu MMurphy TQuay for MCase

DATE 9/13/07 9/17/07 9/24/07 9/25/07

• With comments that have been incorporated

OFFICIAL RECORD COPY

ATTACHMENT 1 IN 1991-09, Rev. 1 CUSTOMERS WHO PURCHASED CRANE VALVES FROM

SOUTHERN CALIFORNIA VALVE MAINTENANCE

AMFAC Neilson

AMANS, W.F. Palmeroy, J.H.

Bay Valve P.E. OHair

B&M Trading Piping Specialities

BHF PITT, Norman

B&L Valve R&D Valve

Bel Kal Republic Supply

Berg Dorf Roper Detroit

Burney Valve Santa Maria Oil Field

Calatex S. Central Valve

Crown Industrial Supply Specialties

Flickenger Valve Services

Grant Supply Wallace, James

G.V.S. Weslo Corp.

Illinois Valve ARA Valve

Industrial Valve Demenno/Kerdoon

International Valve Floor Drilling

L.A. Valve Proc. Nielson Valve

Jackson/Marcus Petro Valve

Laundry Specialties Phoenix Valve

M&N Valve Union Oil

McCoy, Fred Western Valve

Moody Olstad

The inclusion of a company on this list does not mean that the company

knowingly or unknowingly supplied counterfeit or fraudulent products.