ML031390558

Transcript of Public Meeting Between NRC and Firstenergy Nuclear Operating Co., Davis-Besse Nuclear Power Plant

ML031390558
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Site:	Davis Besse
Issue date:	04/15/2003
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2 3 PUBLIC MEETING BETWEEN U.S. NUCLEAR REGULATORY COMMISSION O350 PANEL 4 AND FIRST ENERGY NUCLEAR OPERATING COMPANY OAK HARBOR, OHIO 5

6 Meeting held on Tuesday, April 15, 2003, at 7 2:00 p.m. at the Camp Perry Clubhouse, Oak Harbor, Ohio, taken by me, Marie B. Fresch, Registered Merit Reporter, 8 and Notary Public in and for the State of Ohio.

9 ---

10 PANEL MEMBERS PRESENT:

11 U. S. NUCLEAR REGULATORY COMMISSION 12 John "Jack" Grobe, Chair MC 0350 Panel William Ruland, Vice Chair MC 0350 Panel, 13 Director of Directorate III NRR Christine Lipa, Projects Branch Chief 14 Christopher Scott Thomas, Senior Resident Inspector 15 U.S. NRC Office - Davis-Besse Jon Hopkins, Project Manager Davis-Besse 16 Anthony Mendiola, Section Chief PDIII-2, NRR 17 FIRST ENERGY NUCLEAR OPERATING COMPANY 18 Lew Myers, FENOC Chief Operating Officer 19 Robert W. Schrauder, Director - Support Services 20 J. Randel Fast, Plant Manager James J. Powers, III 21 Director - Nuclear Engineering Michael J. Stevens, 22 Director - Nuclear Maintenance L. William Pearce, 23 Vice President FENOC Oversight Clark Price, Owner - Restart Action Plan 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

2 1 MS. LIPA: Good afternoon. I 2 would like to welcome everybody, FirstEnergy, and members 3 of the public to this public meeting.

4 Folks sitting at the back, if you have trouble 5 hearing, feel free to come on down a little bit closer.

6 This is a public meeting between the NRCs 7 Davis-Besse Oversight Panel and the FirstEnergy Nuclear 8 Operating Company. Im Christine Lipa. I am the Branch 9 Chief in Region III, who has responsibility for the NRC 10 Inspection Program out here at Davis-Besse.

11 So, well go to the first slide, which is the 12 purposes of the meeting. And, the purposes of this meeting 13 are to allow the Licensee to present the status of the 14 activities in the Restart Plan; and, secondly, to discuss 15 the NRC Oversight Panel activities, and we want to focus on 16 activities that the NRC has been doing since the last 17 public meeting.

18 The next slide shows our agenda. And, first off, I 19 would like to make the introductions. Ill start down at 20 my far left is Jon Hopkins, and hes the NRR Project 21 Manager for the Davis-Besse facility.

22 Next to Jon is Tony Mendiola, and hes the Section 23 Chief in Projects in Headquarters.

24 Next to Tony is Bill Ruland and hes a new panel 25 member. He replaces Bill Dean, who has been promoted and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

3 1 moved on to another assignment in Headquarters. So, Bill 2 Ruland is a Senior Manager located in our Headquarters 3 Office in Rockville, Maryland. Hes the new Vice Chairman 4 of the Oversight Panel. And, Bills position is the 5 Project Director for the Project Directorate PD-3 in NRR, 6 which is all Region III plants.

7 Next to me is Jack Grobe, and hes Senior Manager in 8 the Region III Office in Lisle, Illinois. And hes the 9 Chairman of the Davis-Besse Oversight Panel.

10 On my right is Scott Thomas. Hes the Senior 11 Resident Inspector, and hes located here at the 12 Davis-Besse facility.

13 Also, we have Doug Simpkins operating the power 14 point today, and hes the Resident Inspector. Currently, 15 filling the Resident Inspector role for us. Although he 16 has been reassigned to be the Hatch Senior Resident and 17 hell be leaving for that in May.

18 We also had earlier greeting was Nancy Keller, our 19 Office Assistant.

20 And, also we have two new NRC employees in the 21 audience, Francis Ramirez and Carla Roke.

22 And, Lew, I would like to offer you the opportunity 23 to introduce your folks.

24 MR. MYERS: Thank you.

25 Good afternoon. We have a couple people from our MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

4 1 FirstEnergy Corporate Office with us. Leila Vespoli is 2 with us. Shes our Senior Vice President, Corporate Legal 3 Counsel.

4 And, Maria Riley is with us today. Shes FENOC 5 Corporate Legal Counsel.

6 To my left is Bill Pearce. We talked about him on 7 the agenda last time, VP of Quality Oversight.

8 Randy Fast is to my right. Hes our Plant Manager.

9 Mike Stevens is the Outage Director and Maintenance 10 Director. Hes next to him.

11 Clark Price is the Manager of the 350 Process and 12 Manager of Services. And, Clark will be giving us some of 13 the performance indicators today.

14 Jim Powers, next to him, is the Director of 15 Engineering at our site.

16 And, Bob Schrauder, next to him, is Director of 17 Support, at the end of the table.

18 MS. LIPA: Okay. Thank you, 19 Lew.

20 I would also like to offer public officials or 21 representatives of public officials to introduce 22 themselves?

23 MR. ARNDT: Steve Arndt, 24 Ottawa County Commissioner.

25 MR. PAPCUN: John Papcun, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

5 1 Ottawa County Commissioner.

2 MR. KOEBEL: Carl Koebel, 3 Ottawa County Commissioner.

4 MS. LIPA: Okay, thank you.

5 Okay, this meeting is open to public observation, 6 but I did want to remind everybody, this is a business 7 meeting between the NRC and FirstEnergy. And at the 8 conclusion of the business portion of the meeting, but 9 before the meeting is adjourned, the NRC staff will be 10 available to receive comments from members of the public 11 and answer questions, and then well also be available 12 after the meeting.

13 In the foyer on the way in today, there were copies 14 of our April edition of our monthly newsletter. It looks 15 like this. And copies of the slides, both the NRC slides 16 and FirstEnergy slides are available.

17 And, one thing I wanted to point out about the NRC 18 monthly newsletters, is on the back page there is a block 19 that has some contact information for you and some 20 reference information, for the phone numbers of our public 21 affairs folks, and the email addresses and also the 22 Davis-Besse Web page.

23 Another thing that we had in the foyer was the 24 public meeting feedback forms. And weve been using these 25 to shape our meetings since we started using those feedback MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

6 1 forms. So, any feedback that you have, you can provide 2 it. It is important to us.

3 Were also having this meeting transcribed today by 4 Marie Fresch, and that will maintain a record of the 5 meeting. And transcription will be available on our Web 6 page usually in about 3 to 4 weeks. Its important that 7 the speakers use the microphones, so that the transcriber 8 and the audience can hear.

9 So, the next slide is a summary of our March 11 10 public meeting that was held here. We discussed the status 11 of ongoing plant and NRC activities. The NRC staff 12 discussed the status of several Restart Checklist items.

13 We describe the inspections that weve done and 14 those that are upcoming regarding the Adequacy of Safety 15 Significant Structure, Systems, and Components.

16 We also discussed the status of ongoing System 17 Health Review Inspections, which is primarily focused in 18 the engineering area.

19 We highlighted some inspection activities that 20 remain to be completed, including the Normal Operating 21 Pressure Test, the Containment Vessel Integrated Leak Rate 22 Test, the inspection of the emergency sump, inspections of 23 various Licensee programs, and the Adequacy of 24 Organizational Effectiveness in Human Performance.

25 Also at last months meeting, FirstEnergy provided MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

7 1 updates in several areas, and Ill just list those briefly 2 here. First, there was a status of milestones from both a 3 hardware and management perspective. Second, there was an 4 update on the work in the Safety Culture and Safety 5 Conscious Work Environment areas. Third, an update on work 6 on some of the Building Blocks, such as Containment Health, 7 Restart Actions, and Program Compliance. And fourth, there 8 was discussion about the Return to Service Schedule.

9 So, the next slide -- and I did want to mention that 10 these transcripts will be available on our web page. I 11 know we have one out so far, and the other one will be up 12 shortly.

13 The next slide are significant activities that the 14 NRC has performed since that March 11th meeting. On April 15 4, we held a meeting in Headquarters. Ill ask Tony 16 Mendiola to summarize that meeting.

17 MR. MENDIOLA: Good 18 afternoon. On Friday, April 4, FirstEnergy met with the 19 NRC Headquarters staff personally and the NRC Regional 20 staff via videotelephone to discuss some results of some 21 Reactor Coolant Leakage Simulation Testing that was 22 performed by one of their vendors.

23 The purpose of this testing, or if you will, the 24 simulation, was to determine the, what was going to be seen 25 at the, what could be seen by the instrumentation available MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

8 1 to FirstEnergy when they performed their Normal Operating 2 Pressure Test here in the near future.

3 The concern was, after the degradation was found at 4 Davis-Besse, there was some deposits found on the bottom 5 side of the reactor vessel in the vicinity of the reactor 6 vessel in-core monitoring instrumentation nozzles, which 7 are on the bottom of the reactor.

8 And, they, FirstEnergy took samples and did some 9 analysis of the samples. And, it was very in conclusive of 10 the origin of these deposits, and raised enough questions 11 that it was felt that they needed to do some testing to 12 determine when the reactor was restored to power, that 13 there would not be any, that these deposits werent as a 14 result of leakage from these bottom vessel nozzles.

15 In that, they asked their vendor, contractor, 16 Framatone, to conduct testing at the Lynchburg facilities 17 in Lynchburg, Virginia, to determine what was, what could 18 be visibly seen by the equipment, which would be available 19 at the conclusion of their Normal Operating Pressure 20 Testing, and to make sure that they could see, if there was 21 any leakage found.

22 Conversation with the staff discussed a lot of the 23 testament, analogy, and some results, basically identifying 24 what would be found at certain very, very small leak 25 rates. And what would be found, of course, would be MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

9 1 deposits of Boron in the, in the sample area, or the 2 leakage area.

3 Bottom line though, the conclusions came -- the 4 contractor came to the conclusion, and FirstEnergy also 5 came to the conclusion, that any reactor coolant leakage 6 would be confidently, visually discernible by the equipment 7 that would be used by the Licensee at the conclusion of the 8 testing.

9 After that point, there was a discussion of the test 10 itself, and the facilitys inspection plan on how that test 11 would be carried out and what samplings would be performed 12 on any deposits that may be found, or if they were found in 13 the bottom of the reactor vessel.

14 Additionally, there was additional information 15 provided about the new Leakage Detection System to be 16 placed in the reactor containment; basically, the FLUS 17 System, which weve discussed in the past. And that was 18 basically the meeting.

19 MS. LIPA: Okay, thank you, 20 Tony.

21 Earlier today, we held a Public Exit at the 22 Davis-Besse facility. I just wanted to mention what that 23 was all about.

24 That was the preliminary findings and conclusion of 25 a special inspection and a supplemental inspection to look MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

10 1 into utilitys corrective actions for some white findings 2 in the Radiation Protection Area. And, as a result of 3 those two white findings associated with inadequate 4 radiological controls during steam generator work last 5 February, 2002, we performed a follow-up inspection to 6 ensure that the root cause and contributing causes were 7 understood. That they independently, that the utility 8 independently assess the extended condition, and to ensure 9 that the corrective actions were sufficient to address the 10 root and contributing causes and to prevent recurrence.

11 And then we also, as a result of the Restart 12 Checklist item that talks about the Radiation Protection 13 Program, we also reviewed the scope, depth and quality of 14 the Licensees look at their very detailed review that they 15 did of their Radiological Controls Program.

16 And, there were four inspectors involved in this 17 inspection, and that report is scheduled to be out in 30 18 days.

19 Also, a couple of other things on this slide are 20 some recent NRC inspection activities that are either 21 started or completed since then. On April 7th, we 22 initiated an inspection that we call our Phase 3 of the 23 Organizational Effectiveness and Human Performance 24 Inspection.

25 On the NRCs inspection in this area is reviewing MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

11 1 the Licensees Management and Human Performance Excellence 2 Building Block, which is part of their Return to Service 3 Plan. Its also an NRC Restart Checklist item. And this 4 inspection is being performed by us in three phrases.

5 The first phase was an examination of the root 6 causes. The second is an examination of corrective actions 7 for those root causes to ensure that FirstEnergy has 8 identified the appropriate corrective actions. And the 9 third is an examination of the corrective actions once they 10 are placed to assess their effectiveness prior to restart.

11 Phase one of that inspection is complete and that 12 report has been issued. Phase two is mostly complete. And 13 Phase three was begun on April 7th, with a team of industry 14 and NRC experts in this area. And the third phase is 15 expected to be conducted as Licensee activities are 16 completed in the upcoming weeks. Right now we have that 17 scheduled for May 9.

18 Couple of other items. On April 11, we completed 19 two important inspections. The first one was on the newly 20 modified emergency sump in the containment. This 21 inspection reviewed the design and installation of new 22 screens and the greatly expanded surface area on the sump.

23 The second inspection we just completed was the 24 Integrated Leak Rate Test on the Containment Building. The 25 NRC had inspectors review the test procedures, monitor the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

12 1 test, and evaluate the results to ensure that it meets the 2 leak tightness requirements.

3 Both of these reports are expected to be issued in 4 May.

5 The next slide talks about some of the Restart 6 Checklist items, the status of those. We have several 7 Restart Checklist items that will be closed, and those will 8 be documented in Inspection Report 0304, which is due out 9 on April 30.

10 The next slide is some upcoming NRC activities. We 11 have, were making preparation for the under-vessel head 12 inspection. Tony talked a little about the meeting we had 13 at Headquarters on April 4th to talk about the approach for 14 this Normal Operating Pressure Test.

15 We also are making preparation for our Fire 16 Protection Inspection in April. The Restart Assessment 17 Team Inspection will be coming as thing get closer to 18 restart, but still before restart.

19 And then also were working with the utility to plan 20 two additional public meetings; one, to discuss Design 21 Issues, and another one to discuss the Licensees 22 assessment of Safety Culture.

23 The next slide on continuing NRC activities. These 24 are some inspections that have already started and continue 25 to be ongoing. We have several inspectors looking at MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

13 1 System Health Reviews and Design Issues. We also have a 2 separate group of inspectors looking at the Safety 3 Significant Program Effectiveness. Several of these 4 programs have been reviewed, but there are still a couple 5 more that need to be reviewed.

6 Then the Corrective Action Team Inspection was 7 started. And that would be continuing. And this 8 inspection is a pretty important inspection in our minds.

9 Its to review the effectiveness of corrective action 10 process at Davis-Besse to ensure that its being 11 effectively implemented and appropriate corrective action 12 is taken to prevent the occurrence of problems.

13 That team is also looking at several key issues for 14 the panel to make their assessment of the implementation of 15 the Licensees Corrective Action Process. That team has 16 eight people on it, four of those are contractors. This is 17 an extensive inspection, which is scheduled to be completed 18 in May.

19 And then also we have the ongoing Resident 20 Inspector. Theyre here, both of them, on the site all the 21 time, day-to-day operations, watching day-to-day 22 activities, and they issue reports every six or seven 23 weeks.

24 So, this is my summary of the NRC activities that 25 have been ongoing. And with that, Ill turn it over to MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

14 1 FirstEnergy.

2 MR. MYERS: Thank you. We 3 have on the agenda a few things that demonstrate some of 4 the issues that we have and also continued progress that 5 weve made.

6 First, well talk about the Operations area. Randy 7 Fast will provide you some input on the upcoming Mode 4 8 preparation, which is our next milestone.

9 Then, Bill Pearce will discuss the Operations 10 leadership in our plant and the operability evaluations.

11 And you requested that last month.

12 Bob Schrauder will discuss some of the emerging 13 issues we have, specifically in the high head safety 14 injection pump area.

15 One of the major milestones we just completed, we 16 thought demonstrated a very good teamwork now, is the 17 Integrated Leak Rate Test; and Jim Powers is going to brief 18 you on that test. Thats where we pressurized our 19 containment building up to design specs and prove its 20 leak-tight containment. So, Jim will discuss that.

21 Then finally, if you go look at the resolution of 22 some of our significant issues, well provide you some, a 23 list of those and some discussion there.

24 Then, in the Safety Culture area, what I thought we 25 would do there, we provide our own Safety Culture MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

15 1 Assessment back in Mode 5, prior to going to Mode 5.

2 Thats something we did internally using our process.

3 We also finished the, Sonja Haber report that we 4 received this week. Im going to brief you on some of the 5 issues there, prior to the official public meeting of that, 6 to give us some idea of the things we saw.

7 And if time permits, and were moving over there, 8 then Mike Stevens will talk about some of the upcoming 9 milestones, the modification of the resources that there 10 are in place to complete those activities.

11 Then Clark, as usual, will give you some of the 12 Restart Actions planned performance indicators. Thats 13 our game plan today.

14 Randy.

15 MR. FAST: Thank you.

16 Good afternoon. Today, I would like to take a few 17 moments to discuss our Operations staff preparation for 18 Mode 4, as well as some actions that were taking for 19 restart.

20 Actions that weve taken; we did an analysis, an 21 evaluation of the plant staffing; thats in the nonlicensed 22 reactor operator and senior reactor operator positions; and 23 we find that we are appropriately staffed to continue safe 24 operation. That was in part because we didnt complete our 25 annual requalification of all of our licensed individuals; MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

16 1 thats reactor operators and senior reactor operators, the 2 latter part of 2002 successfully. All candidates passed 3 their annual requalification.

4 During this period of time, throughout last year and 5 into this year, we continued our licensed operator 6 requalification training program. And thats really 7 serving us well in being able to get our staff, the crews 8 back in the classroom. We have done a lot of Just-In-Time 9 Training. This is a training that we dont traditionally 10 do, things that Ill cover a little bit of it, but weve 11 actually been able to roll out new procedures that Ill 12 talk about a bit.

13 We also still have two reactor operator and senior 14 reactor operator pipelines. So, that will assure that 15 going forward, well have adequate resources.

16 We did use those resources to help us. In fact, 17 Ive gotten very favorable feedback from the folks that 18 were in the class. Their willingness and really desire to 19 come over and help the plant during this time. As a matter 20 of fact, our mode, whole resolution team, which Ill talk 21 about, consists of principally licensed operator 22 candidates.

23 So, this, has been an experience where theyve 24 actually been able to contribute to the success of the 25 plant and take an active role in some of the activities MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

17 1 that we have ongoing. They will be going back into the 2 classroom the latter part of the second quarter. Thats 3 about the June timeframe, to go back into licensed 4 training.

5 We have developed and have approved our procedures 6 and are ready for the test plan. These are newly developed 7 procedures that encompass things like post modification, 8 post maintenance testing, and as well, our inspection plans 9 at the various hold points during the escalation of the 10 plant.

11 During this period of time we have used the 12 Institute of Nuclear Power Operations using industry 13 experts that come in each week; and taken a look at how 14 were doing in the Operations arena. And, weve actually 15 had pretty good feedback. We have some areas for 16 improvement, but weve also had validation on some of the 17 actions that weve taken. So, thats been a valuable 18 process to our operations in looking at the things that 19 were doing.

20 We did complete, as part of those that requal cycle, 21 Safety Conscious Work Environment Training. Certainly, 22 weve talked about it for all of our leadership, our 23 supervisors, but as well, we took this as an opportunity to 24 teach all our Operations staff, and that was received very 25 favorably. So, even down to the nonlicensed operators, the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

18 1 equipment operators, have been trained in Safety Conscious 2 Work Environment.

3 We did have a self-initiated plan, really our shift 4 managers, I want to make sure I give them credit. They got 5 together and said, heres the kinds of things we need to be 6 doing to improve our leadership and oversight and set 7 Operations up as the leaders of the plant.

8 That Phase One Action Plan had 92 individual 9 elements associated with it. 82 of the 92 have been 10 completed. And then, well be moving from that on to a 11 Phase Two, the next generation of Operations Leadership 12 Plan initiatives.

13 We have taken the initiative to train our key 14 staff. Thats all of our senior reactor operators, but as 15 well, many of our key station engineers and critical people 16 from various organizations throughout the plant; chemistry, 17 health physics; in what we call Operability Determination.

18 As youre aware, its under Generic Letter 9118, really 19 understanding the regulatory processes for determining 20 equipment operability and nonconforming conditions.

21 That was done, in fact, Jim Powers and myself were 22 in that first class. Very interesting. Very enlightening, 23 and it also had a side bar or a side benefit of really 24 allowing our folks to come together and work as a team, as 25 we would expect them to do under the conditions where weve MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

19 1 got conditions not as we expect. And were using the 2 guideline of Operability Determination to resolve issues.

3 MR. THOMAS: Randy, to what 4 extent will your equipment operators be trained as far as 5 Operability Determinations are concerned.

6 MR. FAST: Scott, weve taken 7 no formal actions to train the nonlicensed operators in the 8 Operability Determination; however, they are running point.

9 And so, what we, really their view of the world is, theyre 10 out in the field monitoring plant conditions; and where 11 plant conditions dont meet expectations, then we write a 12 condition report, elevate that to the shift manager; and 13 thats where you may get into a condition.

14 As an example, Ill give you a specific. So, we 15 havent trained them formally in the Generic Letter 9118 16 criteria, but we have trained them that is the first 17 threshold of identification. So, if they saw something 18 like pump seal leakage, we want to elevate that to the 19 appropriate levels in the organization to say, is that a 20 nonconforming condition or does that render that piece of 21 equipment inoperable.

22 So, there is, what Ill say is, awareness by the 23 operations of the nonlicensed staff and their 24 responsibility to identify issues, or problems.

25 Does that answer your question?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

20 1 MR. THOMAS: Yes, somewhat.

2 Same question with your ROs, not your SROs, but your ROs.

3 MR. FAST: Okay, the reactor 4 operators did not, were not specifically targeted as part 5 of the Generic Letter 9118 Operability Determination 6 Training, but as well through the license requal, we have 7 had discussions with our staff about the premise and the 8 need to use that regulatory process for Operability 9 Determination. So, they did not formally attend the 10 two-day training for Operability Determination.

11 MR. THOMAS: So, I guess going 12 forward, are there any plans to include them in that 13 training or is that -- or some part of that training, maybe 14 not the whole thing?

15 MR. FAST: The 16 identification, and certainly what were doing, were 17 folding back in Lessons Learned from the Operability 18 Determination, so that we understand where weve done a 19 good job and where there is areas for improvement. But, 20 just from our own internal processes, as well as regulatory 21 processes, our reactor operators do not make the call, so 22 to speak. Theyre not the ones that actually sign off on 23 Operability Determination. That is done by a senior 24 licensed reactor operator.

25 MR. THOMAS: I understand that, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

21 1 but Im looking at it from an identification issue, or 2 standpoint, you know. Theyre in the control room, they 3 see the indications. I mean they would have -- I mean 4 theyre the front line of defense, I guess, if you will.

5 So, if they were aware of the, I guess, complexities 6 involved with the operability calls.

7 MR. MYERS: What we can do 8 is, we can write a CR on this, and do a needs analysis for 9 training, and determine what needs they need to have. We 10 probably would not train them to the specific area that we 11 would the shift manager, but apprise them of overall 12 knowledge that we would look at in the training room.

13 MR. FAST: Ill take that 14 action. Well do, through our systematic approach to 15 training, well do a needs analysis and determine if thats 16 appropriate.

17 MR. THOMAS: Okay, thanks.

18 MR. FAST: Thanks, Scott.

19 Lastly, on this slide, we did implement new 20 standards and expectations, and those have routinely been 21 reviewed by industry experts as they look at our operating 22 staff, and these standards meet or exceed industry best 23 practices.

24 In fact, its part of our turnover process, at each 25 and every turnover, the operations crew used one of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

22 1 selected standards. And I went to Ops turnover yesterday; 2 and weve actually driven that down to where our equipment 3 operators are preselected to come in and be prepared to 4 discuss an expectation or standard, and that generates crew 5 discussion. That seems to be working well for us.

6 Next slide, please.

7 Okay, just to take a look at Mode 4 and Mode 3, the 8 things that we have planned. There are really three 9 specific plateaus for testing. The first is Reactor 10 Coolant System pressure walkdown of 50 pounds per square 11 inch gauge. Thats a visual examination. All of these are 12 done by a team approach, using Operations and qualified 13 engineering staff to do the walkdowns.

14 Additionally, we have a test at 250 pounds. Well 15 call it Augmented Leakage Test for Reactor Coolant System 16 Components. Those that had been, work had been conducted 17 on those components, and we want to go verify their leakage 18 condition at that intermediate pressure. And then when we 19 get to full operating or normal operating pressure, 20 conditionally, well do walkdowns of components for the 21 Reactor Coolant System.

22 Next slide, please.

23 One of the big challenges is just the administration 24 associated with closing mode hold restraints. And I have 25 current data thats listed here. This principally is MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

23 1 compilation of issues required to be cleared or resolved 2 prior to making the mode change. And those consist of 3 condition reports, corrective actions, work orders, 4 surveillances, which are license compliance tests to meet 5 the regulatory requirements. And were making steady 6 progress towards Mode 4. And without going through some 7 specifics, you see the rack up on this slide.

8 And, the last item is, as we get ready for going 9 into routine, Ill call that routine operations, where 10 were pressurizing the plant, well start reactor coolant 11 pumps, heat up the Reactor Coolant System. Operations 12 staff is, certainly has not been operating the plant for 13 quite sometime. And its pretty much a normal industry 14 practice that we would bring in external oversight, key 15 individuals to be, monitor plant operations 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> a day, 16 7 days a week, to provide real time feedback for our 17 operating crews, to ensure that were meeting our own 18 expectations and industry standards of excellence.

19 Thats really all I had from Operations Readiness.

20 Are there any questions?

21 With that, Ill turned it over to Bill Pearce.

22 MR. GROBE: Not quite. I was 23 making sure nobody else had any questions before I asked 24 mine.

25 MR. FAST: Yes, Jack.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

24 1 MR. GROBE: The Operations 2 approach to restart, is a very, very important area in my 3 view. And its one that I would like to see on the agenda 4 each month going forward.

5 There were a couple of items that you talked about 6 that I had a couple of questions on. The Just-In-Time 7 License Requalification Training, you emphasized that a 8 little bit on your actions and preparations. Could you 9 give a little bit more detail on specifically what topics 10 youve been training on now; then as we approach next month 11 and the month after, how youre expanding that and building 12 on it for approaching each mode as you move forward.

13 MR. FAST: Well, Jack, there 14 is a whole number of actions and items that weve been 15 doing. Let me be specific in telling you some of the 16 activities that weve actually used our control room 17 simulator.

18 The simulator is a real model of the plant. And 19 weve gone through most of the evolutions of filling in 20 reactor coolant system, starting the reactor coolant pumps, 21 pressurizing the plant, heating up the plant, using the 22 procedures that weve developed actually in the simulator.

23 And thats given the crew the opportunity to practice plant 24 operation before we actually conduct those evolutions.

25 Other training that weve had is the actual MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

25 1 classroom training associated with those procedures. So, 2 typically, we would train in the classroom, go through a 3 detailed discussion, and then the crew would go into the 4 control room simulator and actually conduct those 5 evolutions.

6 So, thats been one of the principle things that 7 weve been able to do as part of licensed operator requal 8 training.

9 MR. GROBE: Do you, are you 10 accommodating this training in the normal requal cycle?

11 MR. FAST: Yes, we are, 12 Jack.

13 MR. GROBE: And, how often 14 does each crew rotate into a requal training week?

15 MR. FAST: Typically, we have 16 six crew and they operate one week out of six. However, we 17 have four, what we call, super crews. So, weve changed 18 the periodicity a little bit, so we are on an abbreviated 19 cycle. Thats actually given us some more opportunity for 20 training.

21 MR. GROBE: So, youre on a 22 four crew rotation?

23 MR. FAST: Right, four crew 24 rotation right now. And that has given us more of our 25 folks available to support initiatives running through the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

26 1 day shift.

2 MR. GROBE: Okay. As you 3 approach major milestones, would you be doing additional 4 Just-In-Time Training with crews that are actually going to 5 be doing those evolutions?

6 MR. FAST: Yes, we will.

7 MR. GROBE: I think it would 8 be useful to hear about your experiences in this area on a 9 regular basis.

10 Youve highlighted two areas where youre getting 11 outside assessment; one is IMPO INPO and industry evaluations 12 that are ongoing now, and the other is direct oversight of 13 coaching or feedback of control operators. Would it be 14 possible next month to get some details on feedback that 15 youve received from these folks and opportunities that 16 theyve identified for continued growth?

17 MR. FAST: That would be 18 great. I can give you some right now, if you want. I can 19 give you a couple examples each of things weve seen that 20 are working well for us, a couple items that we really need 21 to improve in.

22 Ill start with a couple of areas for improvement.

23 Weve seen -- this is one of the these good/bad. On major 24 evolutions, weve had good prejob briefs. I know Lew and 25 myself and others as part of the staff have overseen some MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

27 1 of those briefs. At a higher level, more complex 2 activities that had good briefs.

3 The shortfall though is more the routine day-to-day 4 tasks, weve not done a good job of briefing that and 5 setting standards and expectations. So, thats that mixed, 6 got a lot of focus on prejob briefs, but at that routine 7 level, were not getting into the detail and challenging 8 our equipment operators and reactor operators on what could 9 go wrong, what are compensatory measures that we should be 10 taking. So, thats an area of focus in getting a more 11 broad spectrum of prejob briefing.

12 The other are, what Ill call, missed opportunities 13 for coaching by our first line supervisors in the control 14 room. Thats the control room supervisor directly 15 overseeing the licensed operator duties of the reactor 16 operators, as well as equipment operators. And this is 17 another one of these kind of good news/bad news stories.

18 The shift managers have received very good feedback 19 about leadership and ownership and willingness to address 20 issues with the plant staff. We need to drive that down 21 lower into the organization. We need for our first line 22 supervisors in the control room to be more comfortable in 23 coaching opportunities with our plant staff.

24 So, those are, there is some of the, the highs and 25 lows; and I have lots of other examples. But I think its MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

28 1 important, particularly useful to us in that one of our 2 industry peers comes in to make that observation, our staff 3 is much more liable to accept that critical feedback, than 4 if we provide it internally. We certainly provide it 5 internally, but when an industry peer comes in and says, 6 heres something we see, our Operations staff takes a 7 notice of that.

8 And so, thats a good thing, I believe, really 9 raising the standards for our staff.

10 MR. GROBE: Okay.

11 MR. MYERS: Im able -- two 12 of the Ops managers that were here; one of them, ops 13 manager from Mod Mode three, thats pretty consistent with the 14 message that I got also. They talked about routine 15 evolutions, that we get lacks lax in communications, and also 16 shift manager not comfortable coaching, I guess is the 17 word, you know, in the field, and not getting in the field 18 as much as they should. But they also compliment some of 19 the standards of our shift managers as a whole, both people 20 did. So, its pretty good feedback from them --

21 MR. GROBE: Okay, good.

22 MR. MYERS: -- at this 23 point.

24 MR. GROBE: You mentioned 25 that the standards and expectations meet NRCs best MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

29 1 practices, and that youre encouraging feedback in team 2 discussions during each shift turnover. Would it be your 3 expectation then that some of these areas; communication 4 during more routine evolutions, these are areas that you 5 expect to see discussed during these shift turnovers.

6 MR. FAST: That is correct.

7 Those are in the standards and expectations that are 8 routinely discussed, so we use that as a platform to define 9 our expectations.

10 MR. GROBE: Okay, good. The 11 operability and determination training, when was that 12 completed?

13 MR. FAST: It went for 14 several, I think six weeks. So, there was a group that ran 15 two days, for six weeks running; and it was completed 16 about, I want to say about two months ago.

17 MR. GROBE: Okay, great.

18 Thank you.

19 On slide five, you indicated several walkdowns of 20 the Reactor Coolant System. The first one with 50 pounds 21 per square inch gauge, that would be done at Mode 4; is 22 that correct?

23 MR. FAST: That is correct.

24 MR. GROBE: And the other two 25 at 250 pounds per square inch gauge and normal operating MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

30 1 pressure, those would be at Mode 3?

2 MR. FAST: 250 pounds could 3 be done at Mode 4.

4 MR. GROBE: Thats still Mode 5 4, okay.

6 MR. FAST: Yes. And we could 7 actually do the 50 pound in our current mode. What we do 8 is pressurize the plant using nitrogen. So, were in a 9 transition point, but we actually have that capability to 10 pressurize the plant with nitrogen and perform that leak 11 evaluation.

12 MR. GROBE: Is that what 13 youre planning on doing?

14 MR. FAST: That will be the 15 first step, yes.

16 MR. GROBE: Okay, good. When 17 do you plan on doing that?

18 MR. FAST: Well, Mode 4 is 19 currently targeted for the mid part of May.

20 MR. GROBE: Im sorry, I 21 misunderstood.

22 MR. FAST: I was going to 23 back up from that.

24 MR. GROBE: Okay.

25 MR. FAST: So the activities MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

31 1 were currently working toward is the full system 2 restoration of the Reactor Coolant System. And so, Jack, 3 its about two weeks away. I dont have the specifics, 4 unless, Mike, do you have something?

5 MR. STEVENS: I can get the 6 specifics for that. Randy is right, its about two weeks 7 away.

8 MR. GROBE: About two weeks 9 is fine.

10 MR. STEVENS: Were working 11 through air-operated valve work currently, and Jim is going 12 to talk about that.

13 MR. GROBE: Okay, very good.

14 MR. MYERS: One of the things, 15 Jack, if you ever look at pressure temperature curves here, 16 its not desirable to get into Mode 3 and sit there, 17 because the demand is very -- Mode 4, sit there in between 18 Mode 4 and 3, so once you get to Mode 4, you want to 19 continue to go up, because its only like a 30 pound band 20 in there. Its not comfortable operation time. So, the 21 idea is we would not do that until right before Mode 4.

22 MR. GROBE: Okay. I have one 23 additional question. It has to do with the weekly 24 indicator that you folks sent us, and it is tracking 25 modifications for restart.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

32 1 I noticed over the last two weeks, that that 2 indicator has gone up some 20 modifications.

3 MR. MYERS: 30.

4 MR. GROBE: 30. Thank you.

5 That was a surprise to me, to see that number going up.

6 And I was wondering if you could comment on that and give 7 me an indication of how many of those modifications are 8 Mode 4 restraints.

9 MR. STEVENS: Well, I dont know 10 how many of them are Mode 4. That number of modifications 11 includes set point changes, anything that has to do with an 12 engineering change request.

13 MR. GROBE: Sure.

14 MR. STEVENS: And were 15 currently going through some part obsolescence issues as 16 well as making modifications to the plant.

17 I can tell you there is 433 work orders. And in 18 those 433 work orders, are the modifications to take us to 19 Mode 4. And, I dont have the exact number here.

20 MR. MYERS: Jim, do you have 21 that with you?

22 MR. POWERS: No, I dont have 23 the exact number either, but while were going through 24 corrective actions, as we finish our condition report 25 evaluations and corrective actions that are related to MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

33 1 modifications, that they were reviewed by the Restart 2 Review Board and categorized as restart as appropriate and 3 added to the schedule. So, we are preparing schedules that 4 support the field work with modifications now, and well 5 have to get you the precise number of those, Jack, to sort 6 out which ones are Mode 4 restart group.

7 MR. MYERS: I looked at that 8 just the other day. Just a handful of most of the mods 9 work as we come back down, then we have all the mods for 10 diesel, the air dryers. There is some relay work that we 11 have to get done before Mode 4 to make the mode change.

12 But if you go look at the total of those mods, there is not 13 many of them associated with Mode 4 change.

14 MR. GROBE: Thats 15 interesting. Scott and I will have to get into some more 16 detail on that. It just surprised me at this point in time 17 to see the number of modifications going up. I recognize 18 some of those might be simple, but any modification is a 19 bit more complex than a routine corrective work order.

20 And the source of those, I think you said, Jim, was 21 corrective actions from those Condition Reports that are 22 just now being evaluated?

23 MR. POWERS: Right. As you, as 24 weve talked about in the past meeting our performance 25 indicators on the wall, back on the audience, we have been MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

34 1 working through Condition Report evaluations. And once a 2 problem is identified, then the engineers, and other people 3 at the plant, evaluate a problem; and if a resolution is 4 indicated as a modification required, we perform the 5 modification.

6 We are finishing off all those Condition Reports 7 now. Some of the more complex ones are ones that still 8 remain to be done, as we finish off the last small groups 9 of them. So, some are a little more complex problems are 10 being resolved, detailing modifications.

11 MR. MYERS: When we went into 12 this outage, we did not have what I would call a robust AOD AOV 13 program. And we looked at how many valves, Jim?

14 MR. POWERS: We looked at a 15 total of 83 valves, air-operated valves in the plant. And 16 we created a program to better design their design basis 17 and provide analysis, calculations that have demonstrated 18 their margin of safety, margin of capability. Out of those 19 83, there were six valves that needed to have field 20 adjustments done, and twelve valves that needed to have 21 some modification done to them; things as small as a spring 22 change, but then as large in the case of one valve, makeup 23 free problem three bravo valve, change in the actuator and the valve 24 body itself. So, we have twelve modifications that came 25 out, relatively recently, probably within the past month MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

35 1 that weve been engineering those.

2 MR. MYERS: Realize, those 3 12, theyre in Mode 4, okay, you know, those kind of 4 things. And its make up -- is the long lead time on 5 those. All those are in the schedule for Mode 4.

6 MR. GROBE: Okay, very good, 7 thank you.

8 9 MR. PEARCE: Thank you, Jack.

10 What Im going to talk about is the Quality 11 Assurance Groups view of Operations. And, the operational 12 activities that weve looked at are water level control, 13 fuel load, specifically the SRO duties and the Operations 14 interface with fuel load, maintenance support, which is a 15 clearance, is all the support work that Operations does for 16 maintenance activities, and the Integrated Leak Rate Test.

17 And that, was a fairly complex evolution, and Ill talk 18 some about that later.

19 First of all, on the shift turnovers, we think there 20 is a good solid turnover process in place and being 21 utilized, and that there is consistent focus by the 22 Operations group on standards and expectations during these 23 turnovers. Thats, of course, what Randy said, its going 24 to have some redundancy to what Randy said.

25 One of the things we thought that was good with, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

36 1 demonstrated some operations leadership in this area was 2 the shift manager went to the work management turnover, and 3 didnt get enough detail, he thought, to do an adequate job 4 of informing his shift of what was going to go on in the 5 next shift. So, he insisted that they go into more detail 6 on all the turnovers and the work management area, so they 7 could get the proper amount of detail.

8 He got some push-back on that, but he sustained his 9 position and was able to get a change in the ongoing 10 process, so that he got the right amount of detail out of 11 that. And, we saw that as a good thing.

12 Under the area of clearance activities; you know, 13 what were doing now is mostly a maintenance support 14 function in Operations, but they are hanging a lot of 15 clearances, removing a lot of clearances. It takes 16 attention to detail, following the clearance process, 17 making sure we get the right thing done every time.

18 We have seen a few minor instances where we didnt 19 get things done properly, but in the majority, vast 20 majority of incidences, they did a very good job of hanging 21 the clearances, maintain the proper control, removing the 22 clearances and making a safe place for people to work.

23 Under standards and expectations, I talked about 24 that earlier under shift turnovers. The new Operations 25 standards are discussed daily. Its like I said, turnover MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

37 1 process, they go through them, Randy talked about that.

2 The supervisors reinforce the standards frequently. And 3 its our view that the operators seem to be adapting the 4 new standards.

5 Now, we do see lapse in three-way communication 6 sometimes, and some minor instances like that, but in 7 general, we think there is a good set of new standards in 8 place, and, and Operations is striving to do those very 9 consistent.

10 Another example in that area of standards and 11 expectations, there were 403 Condition Reports written in 12 the first quarter by the Operations Department. Give you 13 some idea that theyre focused. Even though the plant is 14 not operating, theyre out there focused on the details of 15 the plant.

16 Some examples of conservative decisions and 17 Operations leadership. Early this year, Ops was the 18 station leader. In fact, Randy Fast represented them in 19 that area. They wanted to have two decay heat pumps 20 available for core load, even though the tech specs only 21 required one at the time. And they sustained their 22 position there. Randy supported them in that. And I 23 thought that was a good thing. They were the ones that 24 actually brought that forward.

25 During the reduced inventory operations that we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

38 1 watched, they prohibited water transfers in the auxiliary 2 building, because they knew their reduced inventory and 3 they didnt want to do any evolutions that might risk that 4 inventory; and we thought that was a conservative 5 decision.

6 Ops, and this was not too long ago, Ops generated a 7 Condition Report to perform a collective significance 8 review of emergency diesel generator reliability. There 9 has been a lot of small individual things with the diesel, 10 and they wanted to look at it from a collective 11 significance perspective; and they got that done. And we 12 thought that was good.

13 And the procedure here, one of the things that we 14 witnessed recently was the Integrated Leak Rate Test. It 15 is a complex test, a lot of valve lineups, and each one of 16 them has to be done correctly so that you dont get leakage 17 through there as you pressurize the entire containment 18 vessel.

19 The procedures were followed well. Complex set of 20 operations were done. And they did accomplish the required 21 configuration control. And I think were going to talk a 22 little later about the success of the Integrated Leak Rate 23 Test. Well, they had a big piece of that, and they did a 24 very professional job of accomplishing that.

25 MR. THOMAS: Outside of Ops, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

39 1 whats your assessment of procedure usage within the other 2 departments, engineering maintenance, or are you prepared 3 to talk about that?

4 MR. PEARCE: Well, I think in 5 the work order process, Scott, it would be my opinion, is 6 where I think were the weakest still; as we get into work 7 orders and our adherence to the specific requirements in 8 the work orders. And those are a maintenance procedure, so 9 to speak.

10 And that, we put a lot of focus in that area, both 11 in the Construction Department and the Maintenance 12 Department out of the Quality Assurance Department, and 13 weve seen some issues. In fact, the feedwater heater that 14 we struggled with there for awhile, a lot of that, in my 15 opinion, was driven by the lack of adherence to the 16 process.

17 So, we tried to intervene and get some attention on 18 those things, and were still seeing instances of those.

19 MR. MYERS: Feedwater heater 20 was a problem.

21 MR. PEARCE: Right. We didnt 22 hold the right temperature, didnt get the right weld, had 23 to grind them back out again; things like that. Those are 24 some examples of where weve seen not so good procedure 25 here.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

40 1 MR. THOMAS: What have you done 2 to prevent that from recurring in the future?

3 MR. STEVENS: I can answer 4 that. We took the crew that was working on the feedwater 5 heaters, and sat them down with the maintenance folks at 6 the station and interviewed them, and then put them back to 7 work and did some observations.

8 And, what we found was, some of these folks, even 9 though they went through the training at the plant, and 10 specific, specifically to our administrative procedures, 11 they didnt fully understand how to work at the facility 12 and use the work order and what the expectation was.

13 We stopped the job. We set up training. We used 14 our SAT Process for Systematic Approach to Training. Did a 15 needs analysis, and involved the Maintenance Services 16 Superintendent to ensure the training was adequate. I 17 involved the Safety Department.

18 Because it was more than just in the welding 19 procedure, we found that they didnt understand fully our 20 compliance base procedure. They were trying to read it and 21 understand it, but they didnt understand some of the 22 terminology.

23 And through training, weve improved performance of 24 that group. Put them back to work, after face-to-face 25 discussions. And then I used our Quality Control MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

41 1 Organization to periodically go out, through hole points 2 and without hole hold points, just to show up at my request, and 3 do some on-the-spot inspections.

4 When we came to nondestructive examination of the 5 feedwater heater, I had our qualified nondestructive 6 personnel go out and take a look at how we were performing 7 that. We found in that instance, where the nondestructive 8 examiner for the vendor wasnt complying with his own 9 procedure. And we challenged him on that, and ended up 10 reaching a resolution and rewriting his procedure.

11 Actually, we used our procedure to finish out the 12 nondestructive examination.

13 MR. PEARCE: Okay, and --

14 MR. GROBE: Bill, if I could, 15 just one more question for Mike.

16 MR. PEARCE: Go ahead.

17 MR. GROBE: The feedwater 18 heater welding issue is somewhat self-revealing as you went 19 to do some testing. Is there some reason that this 20 training effectiveness question was isolated to that group, 21 or are there other groups of maintenance folks out there 22 that are using the same procedures and went through the 23 same training?

24 MR. MYERS: These are 25 contractors, Jack.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

42 1 MR. GROBE: Yeah, I know.

2 MR. STEVENS: We took a look at 3 that, and interviewed our nonnuclear plant services folks.

4 Did some observations on some of the field work they were 5 performing, and we didnt see the same thing, as far as 6 procedure and work package usage. However, what we did 7 find was the quality of the work package was not up to 8 standard. In other words, it was hard to follow the work 9 package as we were making some of the modifications to the 10 containment air coolers.

11 So, what we did was sat down with maintenance 12 managers, put together a multi-group team, if you will. We 13 had Operations, some Engineering and some of the 14 Maintenance folks, sit down and categorize the types of 15 problems we were having, roll them all together and take a 16 look at where the performance shortcomings were.

17 And the actions were putting in place, let me share 18 with you some of the things we saw there. Primarily, it 19 was focused in the Mechanical Department some performance 20 issues, but it wasnt only the Mechanical Department. It 21 was some minor issues in some of the other departments as 22 well.

23 But the primary cause was lack of preparation, as 24 were trying to get work ready and get it into the field, 25 were not able to do Just-In-Time Training on some of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

43 1 activities were less proficient at. In performance, like 2 reactor pump seals, and we identified that as a potential 3 cause. It had the most weight, about 60 to 70 percent of 4 the problem.

5 The next was, we didnt have adequate supervisory 6 involvement. What I mean by that, we had supervisors 7 sporadically observing and involved with the field 8 activities, not strategically; at the critical point in 9 time, the supervisor is there providing the oversight to 10 make sure the work activities are performed correctly.

11 We also, the next one, that was the quality of our 12 work documents. As we went through planning work orders, 13 wed get them to the field, what we found were some of the 14 work packages werent being returned to the planning to be 15 revised. What was happening was, we were issuing 16 supplement work orders to the work already existed in the 17 field, and that make two work documents you have to work 18 together with. And it was, we found that to be confusing 19 to the workers and the supervisors in trying to manage it.

20 And those are some of the things we found, the 21 actions were put in place, and have taken some action in 22 four major areas; organize, clarify, monitor and control.

23 We put our maintenance organization back together, and we 24 were spread out a little bit as we tried to do all these 25 activities and get the schedule ready. We used some of our MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

44 1 more talented folks in some key areas, and I think we saw a 2 result of their lack of involvement in maintenance, and it 3 showed up in some work performance issues.

4 We got them back in, in the departments, and that 5 settled things down. Were clarifying rules and 6 responsibilities.

7 Am I giving you enough?

8 MR. GROBE: Yes, thank you 9 very much.

10 MR. THOMAS: Let me just 11 clarify, so I make sure I understand what you, I understand 12 what you just said. That its not just limited to work 13 thats primarily done by contractors. That there are some 14 issues with the craft at Davis-Besse as well in the 15 maintenance area that still need resolution.

16 MR. STEVENS: Thats right.

17 MR. PEARCE: We dont disagree 18 with that. In fact, let me tell you something that we are 19 doing in that bigger picture regard, is were moving the, 20 the QC Organization back under Quality Assurance. And Lew 21 and I have agreed to do that. He just signed a letter here 22 the other day, and well be doing that over the next week 23 or so.

24 And what were trying to accomplish there, Scott, is 25 exactly, I think what youre talking about, is we want to MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

45 1 get more field time with the people that we have, and not 2 have them -- make them more independent and less tied to 3 the work organization. Elevate, simply elevate the 4 standards some, and give some help to Mike and his group.

5 You know, give him some feedback on how were doing in that 6 area.

7 So, were moving toward that presently. In fact, 8 were going to do it at all three sites, because of our 9 experience here, its a better thing to do.

10 Okay, in the area of operability determinations, as 11 Randy said, the operators were trained on 9118. Steve 12 Loehlein actually attended the training on that with them, 13 one session of it, to see what, our view of it was. And we 14 thought it was a very good training. And, I think that the 15 Operations guys, a few that I talked to about it, seemed to 16 get a lot out of it, they really enjoyed that perspective.

17 In the area of Operability Determinations, last year 18 in QA we had a concern about the operators documenting the 19 logic for how they made operability calls based on 20 determination from engineering, or evaluation from 21 engineering. And weve seen an improvement over the past 22 few months in the log books and the entries and how theyre 23 documenting their logic for making what calls theyre 24 making.

25 We still see periodically something that doesnt MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

46 1 seem as good as we would like there, but we get feedback on 2 it, and, but weve definitely seen some improvement there.

3 In conclusion, I guess what I would say, Ops has 4 performed adequately for the functions we have watched 5 them. Were anxious to see the Mode 3 and 4 operational 6 activity. Were going to provide independent 24-hour, 7 7-day-a-week coverage of that activity in Operations, so we 8 can get some good insight on how were doing for these 9 improvements that theyve been trying to make. And, weve 10 seen some improvement in the area of Operability 11 Determination and how theyve documented their logic.

12 Thats it for me.

13 MR. GROBE: I just had two 14 questions, Bill. You talked about conservative 15 decision-making, and one of the examples was a decision on 16 water transfers during reduced inventory, and thats an 17 excellent example. I was just curious if that occurred in 18 the planning stage or that occurred in the control room?

19 MR. PEARCE: It actually 20 occurred in the control room. And, they did talk about it 21 in the planning, but where they actually put it in place 22 was in their control room activities. And it was a 23 contingency issue. In fact, several of the things that 24 theyve done, I think they had pretty good contingency 25 plans.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

47 1 Thats one of the things, when Randy talked about 2 the prejob briefs, I think theyve done a pretty good job 3 of putting, getting the expected conditions well 4 communicated among the shift organization, and making sure 5 that complies to the plans as things varied, and I have 6 some examples in our review of that area.

7 MR. GROBE: I think thats 8 excellent that the shift, the control room shift made that 9 decision. But I was just curious, is that something that 10 you would want to see moved out into the planning area, 11 where the shift wouldnt be challenged with that kind of 12 decision?

13 MR. PEARCE: Well, yeah, no 14 question about that. I mean, we would like to standardize 15 that. I dont, none of the Operations guys -- well, Mike 16 is here, but I dont know if that has been standardized. I 17 can find out.

18 MR. GROBE: Okay. And, 19 regarding Operability Determinations, I think it was just a 20 week or two ago, Scott identified an issue involving the 21 low pressure injection pumps, which also serve the function 22 in Mode 5 as decay heat pumps. This had to do with the 23 cycle cyclone and separator.

24 There was an issue that appears to only have been a 25 documentation issue there. Its not apparent that the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

48 1 operators concluded in their operability evaluation that 2 the decay heat pumps were operable for the mode that they 3 were currently in and that they were only talking about a 4 future mode. Is this consistent with the kind of things 5 that youve been seeing as far as documentation problems?

6 MR. PEARCE: Yes. In fact, 7 thats the kind of things we have been working on to get 8 some improvement, making sure they get that done well. And 9 its really important. You know, they know why. The guy 10 that makes that, knows why they come to that conclusion.

11 But for the rest of us, and for the oncoming shifts and 12 all, they need to understand that, because if there is some 13 departure from those conditions, then they need to 14 understand what the basis of the decision was.

15 MR. GROBE: Okay.

16 MR. PEARCE: Yes, we do see 17 that periodically, Jack.

18 MR. GROBE: Okay. Was this 19 part of the training? I realize concept 9118 Operability 20 Evaluation is a fairly broad area, but was this 21 documentation issue part of the training that they 22 received?

23 MR. STEVENS: Yes, it was.

24 MR. GROBE: So, thats just a 25 matter of reinforcement?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

49 1 MR. FAST: Not the log books, 2 but the process of documenting the rationale.

3 MR. GROBE: Okay. So, its 4 just a reinforcement issue of examples to make sure that 5 expectations are reinforced?

6 MR. PEARCE: Right.

7 MR. SCHRAUDER: Okay, thank you.

8 Im going to talk about a few of the design issues, 9 relatively important design issues that we are facing.

10 First one I would like to talk about is the high pressure 11 injection pump. This is I believe a new issue since we 12 last met, came out of some of our Condition Report 13 evaluations and resolution.

14 What we found is that very fine debris that would 15 make its way to the sump in the event of an accident could 16 result in damage to the high pressure injection pumps 17 during the recirculation mode.

18 Now, our sump strainer has about, has 3/16 inch 19 openings that allow the water to get into sump to the 20 injection for these pumps, the suction to them.

21 There are two concerns with the high pressure 22 injection pump. One is whats called the hydrostatic 23 bearing, which is a bearing internal to the pump or in the 24 pump that supports the shaft during its rotation. And the, 25 this is a water supported cool bearing. And the ports that MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

50 1 supply water to that bearing have a 1/10 inch opening that 2 goes to it. So, if there is a 3/16 inch opening in the 3 sump that goes to the suction, there is a potential that 4 you could clog the inlets for the hydrostatic bearing, and 5 therefore cause the pump problems and potentially failure.

6 The other pump, just other internal clearances 7 within the pump itself, bearings and the like, these pumps 8 have a natural harmonic frequency to them. If you open up 9 the clearance by way of debris getting in and causing some 10 of the clearances to open up, you can cause certain 11 rotodynamics that will oppose the natural frequency of the 12 pump and cause the pump some problems in that regard also.

13 Listed here, the resolution options that we looked 14 at for that. We looked at providing some additional 15 filtration, whether that be finer mesh on the sump screen 16 itself, or whether we put in a subsequent filter for the 17 high pressure injection pump. That would be basically a 18 backwash filtration system that would be able to backwash 19 itself and send the potential debris back into the 20 containment to the sump.

21 We looked at modifying our existing pumps. Testing 22 our existing pumps under the conditions that they would see 23 or some combination of those two. And finally we looked at 24 replacing those pumps.

25 The path that we are on currently is to replace the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

51 1 pumps. We have purchased new pumps and motors. Both the 2 pumps and the motors need modifications to them, theyre 3 not, theyre a little bit higher horsepower and higher 4 pressure than our current pumps, so well require some 5 modifications to them.

6 In order to, in the process of going through this, 7 Jack, as weve talked to you, we are supporting, we are 8 preparing a license amendment with analytical support from 9 Framatone for our existing high pressure injection pumps to 10 be used during our Normal Operating Pressure Test.

11 The reason that the safety analysis shows that 12 thats acceptable is during that sequence of events, the 13 heat, the plant is pressurized, but its not heated with 14 any nuclear heat. So, even though its at normal pressure, 15 without nuclear heat and without essentially any decay heat 16 in the system, the system will be pressurized much faster 17 than it would with a lot of decay heat coming down from a 18 hundred percent power.

19 And what that means, is the high pressure injection 20 system would not have to go into operation off the 21 recirculation mode. It initially comes on, takes suction 22 off the borated water storage tank, a very high purity 23 water.

24 So, were preparing an analysis that would 25 demonstrate that we would not need to go into recirculation MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

52 1 for the high pressure injection pumps. That will require a 2 license amendment request to the NRC, which Ill term as a 3 one-time deviation from the current technical specification 4 for the high pressure injection pump.

5 We expect that analysis out of Framatone this week 6 yet; in fact, tomorrow to do that. And were working on, 7 supporting that, getting the information for that license 8 amendment request.

9 We also are continuing to look at the potential to 10 test our existing pumps, and to do a modification. There 11 is a modification that NPR MPR is looking at for us, that the 12 suction to this hydrostatic bearing, is taken off of a 13 fourth stage of a pump, so its actual water thats going 14 through the pumps, some of it is siphoned off and fed 15 through the hydrostatic bearing.

16 There is a potential modification that could put a 17 very fine mesh screen right at the suction where that ports 18 off to the hydrostatic bearing. We would mock that up, 19 demonstrate the ability of that to perform, and then we 20 would do some testing of the rest of the internals of the 21 pumps.

22 Right now I would say that that is a much less 23 likely scenario than replacing these pumps, but we are 24 continuing to look at that.

25 MR. HOPKINS: If you were to MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

53 1 replace the pumps, do you think there would be any license 2 amendments needed for the replacement pumps?

3 MR. SCHRAUDER: We dont believe 4 so right now, Jon. They will meet the existing design 5 requirements for the plant when theyre modified.

6 MR. HOPKINS: Okay.

7 MR. MYERS: Bob, I have a 8 question. This is different. But if you go look at our 9 pumps, the issue is not the ECCS issue, its the issue for 10 Boron precipitation, and hydroinjection; is that correct?

11 MR. SCHRAUDER: Some of both.

12 There are some accident scenarios that would require the 13 HPI system to go on recirculation, but there is a long term 14 requirement for the process that we have for, whats called 15 Boron precipitation control. It takes the service line or 16 the mission line for the HPI quite a bit longer than just 17 depressurizing the plant.

18 MR. MYERS: You go look at 19 our high safety injection pump doesnt take direct suction 20 off the sump. Its a piggyback mode, what Im trying to 21 say.

22 MR. SCHRAUDER: Okay, the next 23 issue I would like to discuss, or give you an update on, is 24 the electrical distribution system.

25 We had a number of Condition Reports, many of them MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

54 1 coming out of the Safety Function Validation Project and 2 the Latent Issue Reviews and the System Health Readiness 3 Reviews, which challenge assumptions and completeness of 4 the analysis for the electrical distribution system.

5 Much of the resolution or evaluation of those 6 Condition Reports hinge on basically a new electrical 7 distribution calculation. So, were revising the analysis 8 on a very sophisticated computer software. Its very large 9 and comprehensive calculation. Its very similar to the 10 flow of water through a pipe system, but this is more 11 complicated than that, in that it covers a very high 12 voltage all the way down to the loads throughout the plant, 13 in all the different systems, so integrates the entire 14 electrical distribution system.

15 Weve been working on that analysis for a couple of 16 months now. It is still a couple of weeks away before we 17 will be able to look at the operability of the electrical 18 distribution system, and all of its potential down stream 19 and whether there are any voltage problems in the, down in 20 the 480 and lower distribution system.

21 MR. GROBE: Have you gotten 22 any preliminary feedback from early calculation runs as to 23 whether or not there is going to be any need for 24 modifications?

25 MR. SCHRAUDER: No, we dont have MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

55 1 any preliminary runs?

2 MR. GROBE: Youre still 3 building the model?

4 MR. SCHRAUDER: But its very near 5 completion. Once the model is done, frankly, it goes very 6 quickly to run the model and be able to see.

7 But there is some potential that some of the voltage 8 is down at the, at the end of the distribution system, we 9 could potentially have to do some modifications in that 10 area.

11 MR. HOPKINS: Let me ask you 12 here, Bob. The new computer model, is that an NRC approved 13 computer model?

14 MR. SCHRAUDER: Yes, it is, Jon, 15 its ETAP.

16 MR. HOPKINS: So, its been 17 approved at other facilities?

18 MR. SCHRAUDER: Yes, it has.

19 Okay, another issue on the electrical side, if you 20 will, relates to the emergency diesel generator. We have 21 some issues on the diesel generator.

22 First of all, our load table was found not to be 23 current, kept up-to-date with all of the loads that are 24 loaded onto the diesel. And, we have a starting voltage 25 and frequency response of the diesel itself, where the test MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

56 1 results and data that we accumulated identify that the 2 voltage and frequency responses were not as stated in our 3 USAR.

4 So, we are revising, we have revised the diesel load 5 calculation. We have completed that for the current load 6 and we will need to do some additional work on that 7 calculation, because were doing some changes in the system 8 during this outage.

9 Things like these HPI pump motors, will be, theyre 10 higher horsepower motors than what our current HPI pumps 11 have. We are adding some room coolers to the emergency 12 diesel generator rooms themselves. That will add load to 13 those diesels. And we have some revised Appendix R 14 loading.

15 So, we completed what was the current loading table, 16 but we need to add some more information to it as we 17 complete some of the other things that were doing during 18 this outage.

19 We are preparing a transient analysis for the 20 voltage and frequency response. We do have the initial 21 confirmation of that, if you will, and have identified that 22 the diesels do not meet the current design specs as 23 specified in the USAR and Safety Guide Number 9.

24 Those specifically being, voltage during the initial 25 load sequencing should not drop below 75 percent of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

57 1 nominal load. And the frequency should not drop below 95 2 percent. And we found that we do go below those for some 3 very short period of time during the initial load step on 4 the diesels.

5 So, the next step in that is to evaluate what that 6 impact is to the downstream components. And it recovers 7 very quickly in a matter of about, between one and a half 8 and two seconds, that voltage and frequency comes back up 9 to the expected value, so we have to evaluate now 10 downstream as to whether there is any effect on the 11 equipment thats needed to be supplied by that diesel 12 generator. And, were in the process of completing those 13 evaluations.

14 We do believe though based on our preliminary 15 results that the diesel does have sufficient capacity and 16 capability to start and load and carry its design basis 17 load. So, some of the preliminarily results there do look 18 favorable for the diesel generators.

19 Again, the diesel generators are though somewhat 20 limited with this new motor that we would put in for the 21 high pressure injection pumps. Thats one of the reasons 22 why we have to do some modification work. Our existing 23 motors are about 690 horsepower. The ones that we have 24 purchased are a thousand horsepower right now. Well need 25 to bring those down into about the 800 horsepower range, in MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

58 1 order we dont exceed the capability of the diesels to 2 supply those.

3 Jim actually already talked about the next issue, 4 which was the air operated valves. Covered virtually 5 everything thats on that slide, so I wont go into that 6 again.

7 MS. LIPA: I have a question 8 on the air-operated valves. Can you determine how this 9 occurred, how you found that these valves were not properly 10 adjusted and have you shared what you found with the 11 industry?

12 MR. SCHRAUDER: First of all I 13 would say that I dont think the air-operated valves, Im 14 not sure if we put an OE out on it yet or not, but its 15 certainly not a new issue. Its very similar to the 16 motor-operated valve programs that utilities went through, 17 created a motor-operated valve program, and we really are 18 getting into the air-operated valves now.

19 We have written Condition Reports on the 20 air-operated valves and evaluation of why and how those 21 setups were done. Some of them have been done with the 22 Condition Reports.

23 MS. LIPA: Okay, thank you, 24 Bob.

25 MR. GROBE: Okay.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

59 1 MR. SCHRAUDER: Those were the 2 only issues I was going to cover today.

3 MR. GROBE: Other questions?

4 5 I have just one. I believe that the significant 6 portion, if not all of this design work, has been done by 7 the contracted engineering organizations. In light of 8 recent inspection findings, are you planning on augmenting 9 or modifying the method by which you review and confirm the 10 adequacy of the outside engineering work?

11 MR. POWERS: I would like to 12 cover that one, Jack.

13 We are looking at the control of the, the reviews of 14 the technical org. as supplied to us by our outside 15 technical contractors, and there is a couple of steps that 16 well be taking. One is looking specifically on how the 17 flow of that review occurs, what our process is, and the 18 requirements of that process.

19 Were also going to the, our Engineering Assessment 20 Board, to look specifically at a couple of design packages 21 that we think merit a thorough review, extended condition 22 perspective on those. Those are the, the decay heat valve 23 tank modification for the liner there, and also the 24 containment air coolers. Both of these modifications 25 occurred over a long period of time. Different personnel MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

60 1 working on them.

2 And we believe what we know now, and were still, 3 were still probing into details on, on some of the issues 4 that have been found. We think those are modifications 5 that merit a full review, detailed review. So, those are 6 the actions were planning to take.

7 MR. GROBE: The work thats 8 done by an outside engineering organization, thats done 9 under a quality assurance program; is that correct?

10 MR. POWERS: Thats right.

11 MR. GROBE: Are you also 12 digging a little deeper into that to find out why their own 13 internal checks and balances didnt find these?

14 MR. POWERS: Absolutely. And 15 the contract organization, and this is the organization 16 that prepared our, our emergency sump, some calculations 17 there; were questioned on the detail and calculations.

18 They have their own corrective action report internal to 19 their Appendix B Program, corrective action to investigate 20 exactly what occurred to allow a calculation to come out 21 with some discrepancies in it. So, well be monitoring 22 their performance, as well as our own corrective action 23 programs.

24 MR. PEARCE: We havent reacted 25 to that yet in Quality Assurance, but we will, Jack, and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

61 1 well go look, and look at just what youre asking.

2 MR. GROBE: Okay. Good.

3 Appreciate that.

4 I appreciate your patience on these first two 5 sections of your presentation. These are both very 6 important sections, and fairly complex, and I know we had a 7 lot of questions. I guess I had a lot of questions. I 8 appreciate your patience.

9 Weve been going for an hour and a half. I know, 10 Lew, that you have a flight a little later today, but I 11 think there is a lot of material later thats going to go 12 rather rapidly. I would like to take a five minute break, 13 if we could.

14 MR. MYERS: We were just 15 getting warmed up.

16 MR. GROBE: Yeah, its 17 getting warm in here. Five minutes means be back at 25 18 til.

19 (Off the record.)

20 MR. GROBE: Okay, Randy.

21 MR. FAST: All right, thank 22 you, Jack.

23 I wanted to spend a little time today to bring us up 24 to date with the activities that are going on inside of the 25 containment outside of the Integrated Leak Rate Test.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

62 1 I wanted to at least take a step back and say, what 2 is Containment Health? What were some of the things that 3 we put as part of our plan for activities in containment?

4 So, I listed the project scope, including the 5 emergency sump, containment coatings, decay heat valve 6 tank, containment air coolers, fuel integrity, our 7 equipment -- environmentally qualified equipment, refueling 8 transfer canal, containment vessel; and, as well, what 9 really generated the whole action plan, was the boric acid 10 extent condition, including the inspections, evaluations 11 and corrective actions.

12 Next slide, please.

13 So, Im going to go through each of these 14 individually and try to bring us current with where we are 15 in the projects.

16 The Emergency Sump. Of course, the purpose is to 17 ensure long term cooling. Thats what collects the water 18 after design basis accident and provides suction to the 19 high pressure injection pumps, as we had talked about 20 earlier. And the status is, the engineering design work 21 has been completed. Weve actually completed the field 22 installation. There is a couple of minor things.

23 I wanted to make sure Im clear about what is really 24 installation. There is a support echo that had a couple, 25 another corrective action, but for, the majority of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

63 1 field work is completed. And we did increase the strainer 2 surface area from the original 50 square feet to what is 3 really industry leading 1200 square feet. And we did 4 complete the inspection. The Nuclear Regulatory Commission came in 5 last week and looked at the design package, as well had an 6 opportunity to walk down the actual sump.

7 Next slide, please.

8 MS. LIPA: I did have a 9 question for you, Randy.

10 MR. FAST: Yes.

11 MS. LIPA: I know you were 12 doing a transport analysis for the past condition of the 13 sump to support the LER. Are you also doing a transport 14 analysis of going forward on the new design?

15 MR. POWERS: There is a 16 transport analysis for the new design, supports the new 17 design as part of the modification package. The transport 18 supports the LER in the past operability situation. Its 19 not been started yet. We have a scope discussion ongoing 20 with the contractor that performs that, and were at the 21 point now where we can begin that process.

22 MR. GROBE: Appreciate you 23 very early in the process, but do you have some kind of a 24 window that you expect to get that done?

25 MR. POWERS: I would say its MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

64 1 in the range of four to six weeks, Jack.

2 MR. FAST: Just point out a 3 couple of items here. This area right here is part of an 4 access hatch. And, as part of routine inspections, we gain 5 access to the, this is the upper portion of the sump that 6 would allow, its a bolted lid that can be removed to allow 7 access into the upper sump area.

8 As well, this is what Ill call porous filtration on 9 the top of the upper portion of the containment sump, and 10 then inside, what you really cant see, but weve shown 11 previously to the top hatch, the cylindrical assemblies 12 that provide filtration.

13 Next slide, please.

14 This is what we havent shown a lot of pictures of, 15 but, and I want to try to provide a vantage point. This is 16 a stairwell right here. So, you see the treads of the 17 stairs going up. This lower portion is under, actually at 18 the elevation below the reactor vessel. There is a series 19 of eight tubes below and some external surface that 20 provides some straining. And these tubes provide transport 21 which are supported by these supports right here. And they 22 incline up and then transition up into the upper portion of 23 the sump.

24 So, whats unique about this design is, about a 25 third of it is the upper portion and two thirds of it is MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

65 1 the lower portion of the sump.

2 Next slide, please.

3 Now, this is another, I think, really an excellent 4 design feature associated with our emergency sump. This is 5 a debris screen gate. On either side at the 565 foot 6 elevation of containment, there is these large steel doors, 7 and they provide lockable access control to those areas, 8 but as well they provide coarse screenage or filtration of 9 debris that would be generated under design basis 10 accidents.

11 So, these are massive doors. And they really are 12 works of art. Excellent work by our craftsman in putting 13 this together. And these two -- this is door number 1.

14 There is another one on the other side, door number 3.

15 Then there is another door, 2, and 2 Alpha, which are on 16 either side of the transfer canal.

17 Jack, youre grinning there.

18 MR. GROBE: I was going to 19 say, only an engineer would do view that as a work of art.

20 MR. FAST: Im telling you, 21 you could put this in a museum. You would say, what is 22 it? You would say, its art.

23 MR. HOPKINS: Is that solid at 24 the bottom there?

25 MR. FAST: No, this is, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

66 1 Im talking about, this is a support, so this provides 2 vertical support. This section right here just has a 3 smaller grating associated with it. This is 2x -- 1 1/2 4 inch x 4, like a deck plate, and this is about 4x4.

5 MR. POWERS: I think, Randy, 6 six inches across the bottom there, right there where you 7 point, it is solid plate.

8 MR. FAST: Okay. This is a 9 solid plate. This area here.

10 MR. POWERS: Its the concept, 11 its graded filtration to hold up small finds of grit at 12 the floor level, stop them there.

13 MR. GROBE: You said, I 14 apologize for not remembering the elevation, but 565, is 15 that the floor level which is about the top of the sump?

16 MR. FAST: That is correct.

17 Thats the lowest elevation of our containment. Now, we 18 have lower elevations underneath the reactor vessel.

19 MR. GROBE: Post LOCA water 20 level isnt much higher than that finer mesh, is it?

21 MR. FAST: Its, this would 22 be 565 elevation, this floor area. And the actual sump or 23 the level in containment would be about two to two and a 24 half feet. So, thats as, all of the borated water storage 25 tank, and the core flood, its been flowed into the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

67 1 containment building, we would see elevation at about 2 that.

3 MR. GROBE: Okay, thank you.

4 MR. THOMAS: As part of the 5 design package, was there an evaluation done to see if 6 these two coarse screens potentially rob flow to the sump?

7 MR. POWERS: That was 8 considered as part of the design. Depending on where the 9 break would be and which side of the D-rings, on which side 10 of containment; debris would be generated, a lot of debris 11 on that side of containment; and if one of these screen 12 gates were to be full of that debris, the other side would 13 be relatively clean. And there is also the flow path down 14 below the reactor vessel, through those stairwells in the 15 lower part of the sump, that would be -- there is diverse 16 pathways for the water to flow back to the sump.

17 MR. FAST: Next slide, 18 please.

19 Okay, Containment Coatings. Purpose to ensure 20 adequate long term cooling. This is not the purpose of 21 coatings, its the purpose of the project, was to ensure 22 for long term cooling, we removed degraded or unqualified 23 coatings on components in containment.

24 So, weve done a thorough evaluation of all of the 25 coatings in containment. And, we had a couple of targeted MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

68 1 areas; core flood tanks had unqualified coatings, as well 2 containment dome, which was an older type paint that had 3 degraded.

4 And all of the targeted coatings, targeted coatings, 5 we still have some unqualified coatings, but theyre 6 bounded by our transport analysis, they have been removed 7 using rotopine and needle guns, and we are repainting with 8 qualified coatings. We are just a little more than about a 9 week away from getting out of the paint business here.

10 Ill show some examples of some of the paint.

11 Next slide, please.

12 There is a core flood tank. So that, thats one of 13 the tanks that weve, that is, well, its one of two tanks 14 that have water pressurized to 600 pounds, that go into the 15 Reactor Coolant System on a loss of coolant accident.

16 All the paint had been removed, and as well, this is 17 where the actual water, its pressurized from above. This 18 is the volume of fluid thats borated, and it comes through 19 the core flood and into the core flood nozzle. So, those 20 coatings have been removed and recoated.

21 Next picture, please.

22 Service waterlines. These blue headers right here 23 are part of the service water that are provided to the 24 containment air coolers. We have three containment air 25 coolers. These are isolation valves here.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

69 1 One of the things I wanted to note, you dont get 2 the clarity in this picture, but part of our initiative to 3 improve the indemnification of assets or components in 4 containment was to change out old metal tags with new.

5 Theyre a polymer type of high density qualified on a 6 design basis, and attached with aircraft cable. And 7 theyre bar coded as well for future options. You can see 8 a little bar code on this one here.

9 We can use that then to actually verify containment 10 clearances, as we close that, you can tag that and you know 11 youre on the proper component.

12 Another interesting point is that all of these lines 13 have been cleaned internally, hydrolased and flushed. So, 14 these lines that had some carbon steel and they had some 15 telltale signs of rust and corrosion have all been cleaned 16 internally. So, paint was removed on the outside, 17 recoated, and cleaned on the inside.

18 Next, please.

19 Here is the top of the containment dome, about an 20 acre, a little over 40,000 square feet. You see here the 21 containment spray headers, the upper spray header and lower 22 sprayed header here. And this is the polar crane that 23 extends across the top of the structure.

24 There is a little fascia right here. This is one 25 that, our painters actually brought this issue forward, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

70 1 said they felt that was an area that had not been targeted 2 for coatings removal. They brought that to our attention.

3 It had degraded. We had a coatings engineer go look at 4 it. We additionally removed that coating.

5 You can see here, new white fresh paint. This is an 6 area where paint has been completely removed. This picture 7 is about a week and a half old. Were making excellent 8 progress, and we are just about at being done.

9 Whats so unique about this project is, you see what 10 we call a spider rig. These are basically like window 11 washing rigs that hang from the overhead that our paint 12 crews have used to access these areas. Thats whats 13 really been difficult about this project is the 14 accessibility at that high elevation, but this is really a 15 project that is coming very close to completion.

16 MR. MYERS: Randy, you say 17 well be done in about a week with coatings in containment?

18 MR. FAST: That is correct.

19 MR. MYERS: So, that closes 20 out a large number of corrective actions and CRs.

21 MR. FAST: Let me go, I have 22 another section on that. This closes out the painting part 23 of the it, but the other part containment health, we talked 24 about the assets that had some indication of boric acid; 25 thats another part of this program. And we are at the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

71 1 conclusion of really remediating all of those assets under 2 the corrective action Condition Reports written, 3 inspections, corrective actions. And by the end of this 4 month, we expect to have all those assets recovered and 5 inspections complete.

6 And when I get to that slide I have some detail, 7 but that was over 6500 corrective actions, which was a 8 significant amount of work.

9 MR. THOMAS: Before we leave 10 coatings -- are you done?

11 MR. FAST: Shoot.

12 MR. THOMAS: Can you briefly 13 describe the types of unqualified coatings that were left 14 in containment that are bounded by your analysis?

15 MR. FAST: Yes, Scott.

16 Principally what we have is conduit that was painted as 17 part of the original construction. That conduit has 18 coatings that are not qualified, that would be expected 19 through jet impingement, through design basis accident some 20 of those coatings would be removed. We have an estimated 21 square footage and thats bounded by the transport 22 analysis. So, principally, its conduit.

23 Next slide, please.

24 The next area is the decay heat valve tank. This 25 was to ensure integrity of two very important valves, which MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

72 1 operate post-design basis accident, decay heat 11 and 12, 2 ensures that we maintain integrity, because these are below 3 the flooded area that we talked about previously.

4 So, those valves are not qualified to operate under 5 water. So, we need to be able to keep this vault in a 6 condition where those valves are able to be operated from 7 any time shortly after the design basis accident up to a 8 week after the accident occurs.

9 And in this case, the engineering design work has 10 been completed, installation is nearly complete. Really, 11 the outstanding actions there are the electrical conduit, 12 our sealed welding, and we have whats called a loss of 13 cooling accident seal that is installed inside of the 14 conduit to ensure that no moisture or water from the 15 external can get down into the electrical components, the 16 valves that are in the decay heat valve tank.

17 Thats about it for the decay heat valve tank. I 18 dont have any pictures of that. Its closed up, welded 19 up. It has an access opening. Well just go down there 20 for routine inspection activities from this point.

21 MR. MYERS: It is one of 22 those significant long-term problems that were really 23 pleased with. I think we have a very robust design on that 24 tank.

25 MR. FAST: I would say, it MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

73 1 was elective on our behalf, but we wanted to demonstrate 2 the right standards and the right safety consciousness for 3 important equipment that mitigates the event of any design 4 basis accidents.

5 Next, Containment Air Coolers. What they, the 6 purpose of this particular plan was to replace components 7 that had been damaged or degraded by exposure or long term 8 exposure to boric acid. Additionally, of the three 9 containment air coolers, we had three motors that were part 10 of a Part 21 report, came from the original equipment 11 supplier, and they needed to be remediated.

12 Fan motors have been replaced. Fans, dampers, duct 13 work, all of the instrumentation have been cleaned, 14 refurbished or replaced. We have a series of different 15 things that we did. The fan inlet plenum has been 16 completely rebuilt. It was galvanized, fairly light 17 weight. Its now a heavy duty stainless steel, will last 18 the life of the plant; and if it requires any cleaning, 19 will be very easy for our staff to go in and clean.

20 Service water piping to the cooling coils has been 21 redesigned and replaced. I think Ive got a picture of 22 that we can look at.

23 Next slide, please.

24 Well, excuse me, Ill just finished the discussion 25 here. Physical work is nearly completed. And just going MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

74 1 to go back, I believe we talked about this, I wasnt at the 2 last public meeting, but we had numerous Lessons Learned 3 from the installation of Containment Air Cooler Number 1; 4 some of which revolved around the engineering, the 5 maintainability long term, operational concerns about the 6 ability of the equipment to be operated properly, and as 7 well, just a craftsmanship of the installation.

8 We took all of those Lessons Learned, regenerated 9 the project, and went in and very successfully completed 10 that service water connections to Containment Air Cooler 11 Number 2 and Number 3. And we elected, based on the 12 quality of that design, its ability to be maintained, to go 13 back in and were currently working on Containment Air 14 Cooler Number 1, so that all three of the containment air 15 cooler service water connections will be identical, equally 16 maintainable.

17 One last item that well have to perform, our plant 18 engineering staff will do an air and service water testing, 19 to ensure as you would with any heat exchange exchanger process that 20 we get the appropriate cooling.

21 Next slide, please.

22 MR. MYERS: This is a work of 23 art.

24 MR. FAST: This is. Thank 25 you very much, Lew.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

75 1 These are the service water inlet and return 2 headers. And Ill identify right here what you see are 3 some bellows assemblies. That allows for thermal growth.

4 Under accident conditions, the containment is actually 5 pressurized to about 40 pounds, about 263 degrees. We get 6 whats called two phase flow, as service water is coming 7 into these containment air coolers.

8 This is a very robust design; stainless steel with 9 these thermal bellows. This design will allow 10 maintainability for the new containment air cooler and 11 coils themselves. These are a couple of our craft workers 12 actually doing installation on Containment Air Cooler 13 Number 3.

14 Its been a, really an interesting project, and a 15 lot of lessons learned from it. We actually simplified the 16 design. We made it a little bit too complex originally, 17 and that actually made it more difficult to install. By 18 using a specialty contractor that really specializes in 19 these unique kinds of engineering issues, came in and gave 20 us some hints on how to simplify that design. It was 21 easier to install in a more timely fashion, and we feel we 22 got much better quality.

23 I might just mention one of the concerns. These 24 bellows need to be aligned properly, so we ensure that 25 their flexure is guaranteed. That was one of the issues is MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

76 1 the misalignment of those bellows.

2 Next slide, please.

3 Fuel integrity. One of the long term issues is 4 really to insure fuel reliability. As we talked this 5 morning at the public meeting about some of the health 6 physics issues, those issues are borne out of fuel that 7 either has failed or has leakage. And we wanted to make 8 sure that for the long term health of the system and as 9 well the fuel reliability that we go to every extent 10 practical to include the fuel reliability.

11 Weve removed defective fuel rods. We modified and 12 improved the fuel handing equipment. We improved our 13 training and our procedures for folks. A lot of visual 14 checks during fume fuel movement, core load. We actually 15 replaced some of the spacer grids that were damaged.

16 And, we feel that we are in pretty good shape with 17 our core load successfully behind us. There are no pending 18 activities pending with the fuel reliability, and Im 19 looking forward to leak free fuel cycle.

20 Jon?

21 MR. HOPKINS: Let me ask you, 22 Randy, was the spacer grid damage or any other defective 23 rods traced back to construction of the fuel rods, the 24 vendor, lets say?

25 MR. FAST: There is two MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

77 1 principle elements, Jon, to answer your question. One is 2 in the design. I will say that the spacer grids are, 3 theyre not as substantial as some other fuel fabricators.

4 They have some pros in that there is a lot of flexure 5 capability, but theyre not as robust.

6 And, I have talked with the fuel vendor, and theyre 7 actually going to incorporate a new fuel grid design they 8 got from another company that they partnered with. That 9 will improve spacer grid design and limit the amount of 10 damage thats done.

11 But theres a second element here, and thats the 12 actual equipment that we use. Actually imposes more 13 opportunity to cause grid strap damage, because of very 14 close tolerances on the mast, as you would withdraw or 15 insert fuel, it rubs on the inner portion, and that 16 provides an opportunity for grid strap damage.

17 So, we took some compensatory measures to ensure 18 that we minimize that hazard. And long term, were looking 19 to modify the fuel handling equipment to open up some 20 clearances to mitigate those potential effects.

21 MR. HOPKINS: Okay, thank you.

22 MR. FAST: Next slide, 23 please.

24 Environmental qualified equipment. As part of the 25 inspection activities, all assets that are required to be MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

78 1 maintained operability after design-basis accident were 2 walked down and evaluated, and all of that equipment was 3 inspected for signs of boric acid or degradation. All 4 equipment was found to be operable and there was no impact 5 on them, which is really a good thing. That would say the 6 design was robust and appropriate.

7 Next slide, please.

8 Refuel Canal Leakage. We have some legacy issues 9 here. This is really a housekeeping issue for us, but one 10 we wanted to look at past leakage from structures and 11 identify any sources of leakage.

12 We used some new technology, actual sound monitoring 13 equipment, that actually can detect a very low leakage. We 14 did find some examples that are under review and evaluation 15 for corrective action of areas where we did see some low 16 level leakage.

17 As well, just to ensure, because there is a leakage 18 path, what was the impact on concrete; was there any 19 degradation on concrete; as well is there any degradation 20 of rebar, that steel thats embedded within the concrete.

21 And, we did show some very minor corrosion; however, 22 nothing that certainly affected structural integrity.

23 And, the corrective actions that were going to take 24 are under review. It will be done at a future date when 25 the time is appropriate.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

79 1 I do believe I have a photograph here of a core 2 bore. Ill just point out -- this is containment concrete 3 thats poured. This is a cross-section of a, we actually 4 bore this piece of concrete out, so that we can do analysis 5 of the actual rigidity, the hardness of that concrete.

6 This is where its actually cut through the rebar.

7 So, were able to look at the rebar and see is there 8 any corrosion on the surface, as leakage or water has 9 migrated through the concrete, would come in contact with 10 the rebar. And, there were no issues there.

11 We also verified that the hardness, the integrity of 12 the concrete met or exceeded requirements for concrete.

13 This is high pressure, high density concrete.

14 MR. MYERS: What did you do to 15 that hole?

16 MR. FAST: We grout that. A 17 process, we use high density grout to go back, fill those 18 holes. Those are engineered holes. We dont just go 19 hunting. We know, based on maps, where the concrete is, 20 where the rebar is; and so we actually target those areas, 21 based on those drawings, to get these core bore samples.

22 We know as well, that they dont compromise the structural 23 integrity of the building.

24 MR. MENDIOLA: Randy, how many 25 bores did you end up cutting?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

80 1 MR. FAST: A Bunch. I dont 2 have that number, Tony. I can get that number for you 3 later.

4 MR. MENDIOLA: Okay. And did you 5 find any concrete along any of the leakage paths that needs 6 to be repaired?

7 MR. FAST: We did not find 8 any examples where concrete did not meet design 9 requirements.

10 MR. MENDIOLA: Okay, thank you.

11 MR. FAST: Next slide, 12 please.

13 The Containment Vessel. Thats the actual liner, 14 what I call liner. Its not a liner, its a freestanding 15 steel vessel, inch and a half steel throughout containment.

16 And we needed to verify the integrity of that containment 17 liner.

18 We went through a series of nondestructive 19 examinations. All those examinations were completed. The 20 containment is operable. And that was defined as well by 21 the Integrated Containment Leak Test.

22 We are installing a grout seal to close, there is a 23 small annular gap, both on the inside and outside of the 24 containment vessel. That will seal between the concrete 25 curve on the inside of containment and whats called a sand MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

81 1 pocket on the outside of containment.

2 So, that is outstanding work. Weve got some 3 proposals of it coming to us to perform that remediation 4 before restart.

5 Next slide, please.

6 Heres what brought us to this issue, which is 7 really the containment inspections. Theyll look at all of 8 the assets and components that were affected by boric acid, 9 evaluate those conditions, ensure that we have appropriate 10 corrective actions, and then document as-left condition, 11 which will really give us a good baseline for future 12 inspections.

13 Next slide, please.

14 All of the discovery inspections in accordance with 15 our Discovery Action Plan have been completed. All 16 evaluations have been prepared, as we talked earlier, about 17 6500 corrective actions have been identified. Not all of 18 those are required for restart; however, they were coded as 19 a restart or nonrestart.

20 We have a number here, as you see either restart 21 corrective actions that were assigned. This number has 22 gone up since the slide. I dont have a current number, 23 but all of these will be completed by the end of the 24 month. And the remaining work is primarily just cleaning 25 things, like boric acid on a valve stem or on one of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

82 1 assets within containment. We document the as-left 2 condition. Its documented on the Condition Report.

3 And the last item, actually I got a status this 4 morning on steam cleaning. Were still struggling a bit, 5 but we wanted to actually go inside and steam clean the 6 D-rings. Thats partly a housekeeping issue to raise the 7 standards, also decontaminate the areas.

8 As of this morning, we only had about 31 inspections 9 for assets inside the D-rings remaining. I wanted to get 10 those completed. Well do the D-ring cleaning as separate 11 issue, but I wanted to complete the actual inspections on 12 the assets in containment.

13 Next slide, please.

14 Reactor Pressure Vessel Head. Reactor is completely 15 resembled since the last time we met. Missle shields are 16 installed. Were in our final configuration. Head vent is 17 in. All seismic restraints are in. Cabling is installed.

18 Control rod testing will be done during full pressure 19 test. So, the reactor vessel is fully intact and ready for 20 full pressure testing.

21 Next slide, please.

22 MR. HOPKINS: Wait a second.

23 Let me understand. So, you will actually be withdrawing 24 the control rods during the full pressure test, one at a 25 time?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

83 1 MR. MYERS: No.

2 MR. HOPKINS: No. So, when you 3 said control rod testing, what testing is that?

4 MR. FAST: I think it may be, 5 before well start the reactor up, well do rod testing.

6 MR. HOPKINS: Okay.

7 MR. FAST: That is a normal 8 surveillance activity. I think the words are deceiving 9 here. Its not actually during the demonstration test of 10 full pressure operation.

11 MR. HOPKINS: Thank you.

12 MR. FAST: Thank you, Jon.

13 Next slide.

14 This is the FLUS. This is the containment, in this 15 case, under vessel leakage monitoring system. This is the 16 installation of tubing which actually goes up and under the 17 vessel. Its on the inside of the insulation.

18 Installation is complete. We are hooking up --

19 pardon me?

20 We are installing the plant computer that will allow 21 us to do remote monitoring. And then as part of the 22 pressure test, the demonstration test, well have an 23 opportunity to do sensitivity testing to actually calibrate 24 the system and set it up for power operation.

25 Thats really everything associated with the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

84 1 Containment. I think were going to get out of Containment 2 Health business in the near term. Well bring you 3 up-to-date with any additional activities that we have, but 4 at the end of the month, Containment Health is for all 5 intents and purposes going to be complete.

6 MR. MYERS: You know, that 7 test you saw might be the test where they just move the rod 8 up an inch or so to make sure its flash flush. That might be.

9 MR. FAST: Verification of 10 rod length. And I know, Jon, youre probably asking about 11 the rod drop test.

12 MR. HOPKINS: Yeah. I would 13 like, I would like you to verify that, because if you make 14 any submittal about the HPI pumps for that NOP full 15 pressure test, I would like to know what youre going to be 16 doing with control rods at the same time.

17 MR. FAST: Understand.

18 MR. MYERS: You may have 19 concluded that. Youre right.

20 MR. FAST: Well take that 21 action. Thank you, Jon.

22 MR. MENDIOLA: If I could ask a 23 question on a previous slide. I hate to take you all the 24 way back to slide 19, your first work of art there.

25 I cant remember all your debris analysis that you MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

85 1 had, and you talked about this to us months ago, but did 2 you have any screen gates previous to this time?

3 MR. FAST: We did not.

4 MR. MENDIOLA: Okay. These gates 5 are at the 565 level?

6 MR. FAST: Thats correct.

7 MR. MENDIOLA: And LOCA 8 condition, the water will get into the sump at 565 level by 9 what method; down the stairwells?

10 MR. FAST: There are opening 11 in the D-rings that would allow flow into that area.

12 MR. POWERS: LOCA approach from 13 both sides, Tony, around the walkway on the 565, youre 14 familiar with the approach walkways to the sump. It can, 15 water can flow 360 degrees around the containment. There 16 is one of these gateways on both sides. Either way. Plus 17 it can go down the stairwell to the lower, below the 18 reactor vessel area where that lower large portion of the 19 sump is.

20 MR. MENDIOLA: So, there is 21 stairwells, if you want to call that, on both hemispheres 22 on both sides of the gates?

23 MR. POWERS: Yes, right.

24 MR. MENDIOLA: So the gates, the 25 LOCA debris loading is on one side of both gates, there is MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

86 1 still water going to be able to get down into the sumps?

2 MR. POWERS: Right.

3 MR. MENDIOLA: To the other 4 stairwells?

5 MR. POWERS: Right. That was 6 the design consideration.

7 MR. MENDIOLA: Okay. Thank you.

8 MR. MYERS: Okay, Jim.

9 MR. POWERS: I would like to 10 talk about a success we had at the site with the Integrated 11 Leak Rate Test in Containment. If you look at the front of 12 your slide package. First slide shows our cooling tower as 13 we build it with the recovery and improvement of our 14 plant. Integrated Leak Rate Test was one of the major 15 milestones that we needed to complete to continue our 16 forward progress. And we performed it well at the site and 17 we demonstrated a very leak tight containment.

18 The purpose of the test is to demonstrate 19 containment integrity. Following the construction opening 20 that we prepared in containment to move our new reactor 21 vessel head in, we closed up the opening and demonstrated 22 structural integrity and leak rate integrity through this 23 testing process.

24 The process of testing containment for pressure is 25 done periodically, normally on a ten year interval, unless MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

87 1 there is a reason, a major change, such as our 2 construction, to do it more frequently.

3 We pressurize our containment to nearly 40 pounds 4 per square inch gauge with compressors as we do this, and 5 then we hold them for stabilization of conditions within 6 the containment and atmospheric conditions. The 7 containment is very large, about 27.8 million cubic feet.

8 So, to pressurize it and then hold it for conditions such 9 as thermal stratification to stabilize is important.

10 Then we prepare, or we perform leakage test 11 measurements, and our instrumentation that we use for this 12 is very precise. We have 30 temperature elements that we 13 locate throughout the containment. We have ten relative 14 humidity gauges. And we have two precision scientific 15 instruments that measure down to the range of 1/10,000 of a 16 pound per square inch change in pressure. So, thats the 17 reason why we wait for stabilization to get all the 18 parameters stabilized and ready for the test.

19 We perform a leakage test by looking for any changes 20 in the parameters that may indicate there is leakage. And 21 that test goes on for a number of hours. And, Ill show a 22 curve of the pressure test that gives you a timeline of 23 it.

24 Then, we validate our test instrumentation by 25 introducing a known small leak out of the containment with MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

88 1 an accurate measurement on that leak, and we watch our 2 instrumentation to assure that it can accurately detect 3 that leak and that validates that the instrumentation is 4 working well.

5 Then, subsequent to collecting our data, we 6 depressurize and analyze the test data.

7 Next slide shows the equipment that we need to bring 8 in to the site.

9 MR. GROBE: Jim, you might 10 want to clarify that you dont actually put a hole in 11 containment.

12 MR. POWERS: Oh, we open up a 13 little valve, Jack, thank you. Thats right.

14 MR. MYERS: Saw that core 15 drill a while ago.

16 MR. GROBE: Thats right, that 17 was not a known small leak. (laughter) 18 MR. POWERS: In order to 19 pressurize this large containment building, we bring in 20 twelve temporary compressors onto the site. And here we 21 show a view of them from one of the upper floors of our 22 office building right adjacent to the containment at the 23 site.

24 So, looking down, you can see the arrangement of 25 these compressors. Theyre all taller than we are.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

89 1 Theyre pretty big pieces of machinery. And we connect 2 them up with hoses into a manifold. Thats that little 3 piece of pipe, white piece of pipe proceeds on into the 4 containment.

5 At the turn in the white pipe is a silencer for when 6 we depressurize the containment; the air escaping is pretty 7 noisy and it goes on for a period of time while we 8 depressurize all that air.

9 On the next slide, we show the manifold hooking up 10 all the hoses from the multiple compressors together. Use 11 this to pressurize. As you can tell, this is advanced 12 planning that needs to take place to get this test prepared 13 to go, and equipment to be staged.

14 And there is a lot of preparation within the plant 15 itself within the containment. For example, the Reactor 16 Coolant System needs to be closed up. All the work needs 17 to be completed on things like reactor coolant pump seals 18 that were being refurbished, valves that are being replaced 19 and maintenance being done on them. Steam generators need 20 to be closed up.

21 So, a lot of work needs to be prepared. Individual 22 valves need to be tested in preparation. And then every, 23 every one backs out of containment, and any loose equipment 24 is removed, because of the pressurization and 25 depressurization on those.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

90 1 And, so the organization needs to communicate and 2 work well together to reach this milestone and effectively 3 execute it.

4 On the next slide, what we show is the 5 pressurization sequence that occurs, as we go through the 6 stages of the Integrated Leak Rate Test. So, to pressurize 7 the containment with all the compressors takes nine hours.

8 Then a stabilization period is a bit over ten hours. The 9 hold test where we take our instrumentation readings is a 10 bit over six hours. Verification that we talked about, 11 with the flow thats introduced through a valve, 12 approximately four hours. And depressurization takes 13 another over nine hours to let that air out of the 14 containment structure.

15 This was completed on the 9th. And it was 16 completed, I need to add as well, six hours in overall time 17 frame better than the last time this test was done in 18 2000. This test was done during a refueling outage. So, 19 the organization worked well together to efficiently do 20 this test, and to do it well.

21 The next slide, some of the Safety Culture 22 attributes that we think were demonstrated through the ILRT 23 activities; preplanning, cross-functional teamwork. You 24 know, as Ive described, the engineers need to work to 25 prepare, the maintenance craft workers need to get their MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

91 1 work done as a priority and understand priorities to 2 achieve this objective.

3 Operations needs to position hundreds of components 4 of valves into the appropriate position to prepare for the 5 test and its successful execution.

6 Contingency planning needs to be in place for all 7 these steps, in case equipment is not available or doesnt 8 work appropriately. Previous lessons learned from the 9 Davis-Besse site, as well as the industry factored in. We 10 brought in industry experts to peer check us and critique 11 us in our plans prior to the test to be sure were 12 successful, and that paid off.

13 Resource allocation needs to be there for all the 14 various work groups, and solid project management dragnets 15 that lay out the logic of how were going to go through the 16 test and complete it successfully need to be done.

17 These are a couple of the engineers. The front man 18 is Mike Byer. Hes in the plant engineering section of our 19 senior engineers. He is the Test Director. And hes 20 assisted by George VanWert, who is a specialist contractor 21 in this type of test. They were at their computer 22 instrumentation monitoring the parameters during the test 23 here.

24 As we show here, I mentioned we demonstrated through 25 our data review that the containment continues to be leak MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

92 1 tight, and we had a successful test evolution.

2 Any question on that?

3 MR. GROBE: Jim, no question, 4 just a comment. We had two inspectors that spent, well, 5 over about the last eight weeks reviewing test procedures 6 and preparations for this test, and actually witnessed the 7 test; and provided very positive feedback regarding the 8 performance of the test and the quality of the results.

9 MR. POWERS: Thank you.

10 Couple of slides here I wanted to touch on quickly.

11 Weve talked about many of these significant plant issues 12 that are being resolved amongst our various portions of the 13 presentation in the past meetings, but we are working to 14 keep them in front of us at the plant and in front of the 15 staff, so they can see the effective resolution of 16 longstanding issues and in some cases latent issues at the 17 plant, and what it takes and demonstrate effective 18 resolution of issues. We think that contributes also to 19 the Safety Culture at the plant.

20 As you can see, for example, I will select a couple 21 of them. Our valve team has worked over 1,500 work items 22 that completed work on 594 valves, 72 remain. That 23 includes things like repacking valves where any leakage was 24 noted. Replacing yokes on valves to get improved material 25 applications. So, a lot of work on material condition of MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

93 1 the plant has been done.

2 On the next slide, we have noted on the first bullet 3 there, the reactor vessel internal cleaning. Randy 4 mentioned the fuel inspections and going toward competence 5 on our fuel integrity. We also completely disassembled the 6 internals for the reactor vessel at the site prior to 7 putting the fuel in. And backended out and removed all 8 foreign material with a very thorough cleaning. So, thats 9 a real plus of the site going forward for fuel 10 reliability.

11 We also repaired our reactor coolant system 12 resistance temperature detection faucets bosses that had been a 13 source of leakage in the past, and those were replaced.

14 Completed work on reactor coolant pumps. Were going 15 through our emergency diesel generators and improving 16 material condition there.

17 Weve cleaned the inside of our service water system 18 and made sure it was restored to full capability. We 19 mentioned our feedwater heater 1-6 retubing project.

20 Thats also positioning the plant material condition for 21 the future, lifetime of the plant.

22 Our cranes, we worked on those to upgrade our 23 controls; and also make them removable from containment, so 24 during the operating cycle, that instrumentation can be 25 taken out of containment, so its not exposed to operating MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

94 1 conditions, and its brought back in during refueling 2 outages. So, that would keep it in pristine shape.

3 Finally, a thorough containment cleaning. Going 4 through with a team led by Lynn Harder in our Containment 5 Health Group, completely cleaning the residual Boron that 6 may be there. Thats restoring us to a standard that will 7 set our going forward, the staff for future operations.

8 With that, speaking of Safety Culture, I would like 9 to turn it over to Lew Myers.

10 MR. MYERS: Thank you.

11 Today, I would like to talk about three areas, 12 desired outcomes, if you would. Prior to our Mode 5, we 13 completed our second Safety Culture Assessment in-house. I 14 would like to assess you on that.

15 As you recall, we hired an independent consultant to 16 perform a safety assessment -- Safety Culture Assessment at 17 our plant, and provide you a preview of some of the 18 information that we learned from that assessment.

19 And finally, then Bill Pearce will brief you on the 20 results of our most recent Safety Conscious Work 21 Environment Survey. You remember, we gave you some 22 information I think last year or something, on the first 23 review. So, well give you an update there.

24 If you go look at our Safety Culture process, we 25 have a business, business practice that we put in place, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

95 1 our assessment for Safety Culture is a very structured 2 process, using that business practice. And Ill give you 3 some, an example of that, that we developed, and to monitor 4 specific attributes and characteristics for each of the 5 these Safety Culture criteria that we identified.

6 We had a two-day meeting. Each manager came in and 7 presented their assessment of their particular area. The 8 criteria for the groups was graded as a group. So, all the 9 men. It wasnt just a guy comes in and says, I think my 10 areas are green. It was a very challenging experience.

11 I think youll find some of your people monitored 12 this, I believe. We also brought in some of our program 13 owners from engineering our engineering programs; some of 14 our system engineers. Then we went out and randomly picked 15 a couple of our mechanics to also give us some feedback.

16 The management team consensus as a group I think was 17 attained before we finished. Then, once we finished our 18 Safety Culture Evaluation for Mode 5, we go back and from 19 an objective standpoint and look at this criteria, because 20 this is a learning process. We go back and review and 21 redefine the criterias we need to, or add additional 22 criteria. Ill show some examples of that.

23 Next slide.

24 If you go look on this Mode 5 Safety Culture, we 25 assessed ourselves overall as yellow in the Policy Level MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

96 1 Commitment Area. Ill provide you some input on that.

2 Yellow in the manage -- Plant Management Commitment Area.

3 Ill provide you some input on that. And finally, the 4 Individual Commitment Area, we also assessed ourselves 5 yellow. So, its yellow, yellow, yellow.

6 As you see, we added some criteria, the two lower 7 corners.

8 Do you have your pointer?

9 So, in the Policy or Corporate Level Area, 10 Self-Assessment was added and Independent Oversight on the 11 specific criteria for those.

12 And then in the Management Area, we have 13 Cross-Functional Work Management and Communications and 14 Environment of Engagement and Commitment.

15 As you see, these four new criteria, we graded one 16 of those yellow. And we really focused on those areas 17 prior to loading the fuel.

18 The overall assessment, we would say, if we had to 19 look at this assessment as different than we had before, 20 because we had some white areas, and they have shown 21 before, but we would say if we had to assess ourselves 22 honestly, we see an improvement, but what weve seen is 23 criteria is very specific now, and more difficult to 24 grade. And Ill show you that as we go through.

25 So, lets move on to the next slide.

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97 1 MR. THOMAS: Lew, could you 2 briefly talk about what yellow means for the broad 3 category?

4 MR. MYERS: Yes, Im glad you 5 asked that. In fact, I just happen to have our business 6 practice. Green is all major areas are acceptable with a 7 few minor indication -- indicator deviations. White is all 8 major areas are acceptable with a few indicators requiring 9 management attention. Yellow, you get into where it 10 requires a more prompt attention. All major areas are 11 acceptable with several indicators requiring prompt 12 management attention. And then red would be, several major 13 areas and these criteria on the side, do not meet 14 acceptable standards and require immediate management 15 attention.

16 MR. THOMAS: Thank you.

17 MR. MYERS: This slide here is 18 an example of one of the pages of this procedure, which I 19 think is 55 pages long. We go through and use this 20 criteria to grade our areas. Some of the stuff is 21 subjective. Some of it is very objective.

22 For example, if you look at this area here, its in 23 the individual commitment area, and it concerns questioning 24 attitude. If you look over here at the individual area up 25 here, youll find a questioning, an area under questioning MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

98 1 attitude.

2 If you go back to this original Safety Culture model 3 I gave you, and under the Quality of Prejob Briefings, we 4 have some subjective criteria where were red, if we see a 5 lot of prejob briefings not going well. If in general, if 6 management observation and QA field observation, so were 7 also using our quality group observations show that the 8 prejob briefs are generally acceptable, then you would be 9 green.

10 Thats sort of subjective, but we can go back, and 11 since our observations are computerized, look at the number 12 of acceptable ones and make a management decision there.

13 You go to the next one where it is more objective; 14 very, very objective. Now, where we say, correct CRs that 15 have been generated by our staff. Now what, those that we 16 have, is our staff, when we find problems, identify those 17 problems.

18 So, if you go look, you say, less than 13 percent of 19 our individuals wrote CRs during the past 30 days. That 20 would be a red issue.

21 Go over here, and you look and say, more than 17 22 percent of our individuals wrote CRs in the past month.

23 That would take us to green.

24 So, thats very measurable. So, you find a 25 combination of questions with some subjectivity in it, and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

99 1 some others that are very objective.

2 Next slide, please.

3 In the Policy Level Area, there is five commitments 4 in this area. Two of the commitments are new. Two were 5 evaluated yellow.

6 If you go look at our management values are clearly 7 reflected in our business plan and are understood in the 8 organization. That is yellow. I will explain why in just 9 a moment.

10 Resources, the next area is yellow, was resources 11 are available or can be obtained to ensure safe, reliable 12 operations. We also grade that area yellow. Now. Why was 13 that?

14 Go to the next slide. If you go look, the 2003 15 business plan was not approved or was distributed at that 16 time. In fact, it was in the last stages of approval 17 waiting for Bob Saunders signature. That didnt stop us, 18 because the criteria was that objective, we rated ourselves 19 on; that does not meet that criteria.

20 Additionally, if you go out and survey our 21 employees, you know, well tell you that were still 22 getting some, we think we show good improvement, but 23 getting some mixed results when we go out and ask about 24 what is Safety Culture and what is the difference between 25 that and Safety Conscious Work Environment; stuff like MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

100 1 that. So, based on that, we graded that area yellow.

2 Employees are unaware of the Nuclear Performance 3 Index, when we go survey that. What is the status that 4 index right now? Thats one of the criteria we measure.

5 If you go look also at Maintenance, Radiation 6 Protection and Chemistry areas and in Design Engineering 7 Operations, they were yellow based on availability of 8 resources.

9 If you go look on our plate right now, especially in 10 this first three areas, there is a lot of CRs and 11 activities. Just throwing resources at the problems 12 sometimes doesnt help. And so, you know, weve been 13 working, our staff has been working like 72 hours8.333333e-4 days <br />0.02 hours <br />1.190476e-4 weeks <br />2.7396e-5 months <br /> a week.

14 Weve backed off on that. We made some very good 15 accomplishments, but because of that, we grade ourselves 16 yellow.

17 Additionally, if you go look at our Operations Area, 18 we have continued training on, but we have interrupted our 19 license class, which we are just now putting back in place 20 for next years exam. If you go look, because of that, 21 Randy talked to you about our staffing plan awhile ago for 22 Operations, and thats a very important area for us.

23 Because we had knocked off that training class, with the 24 outage for awhile, we graded yellow also.

25 Lack of appropriate section performance indicators.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

101 1 If you walk around our plant versus our other two plants, 2 you walk down into the different areas, the shop, over in 3 engineering; each department at other plants have very 4 specific performance indicators that support our goals and 5 objectives at our stations, and we monitor those 6 performance indicators, routinely stress the indicators 7 with our employees, and then survey to make sure they have 8 a clear understanding and buy in.

9 We dont see that at Davis-Besse. In fact, there 10 was no indicator awards in our shops or in operations, 11 stuff like that. Weve added that since that evaluation 12 has been done. In fact, we had the tools that we use at 13 our other plants on order for this plant.

14 We are still not where we want to be though there.

15 We need to have clearly defined indicators that people 16 understand and can relate to. So, we need to continue work 17 in that area. So, that area also is yellow.

18 Next slide.

19 Go to the Plan Management Commitment Area, thats 20 the second area that has to do with us as a management 21 team. There is seven management level commitments in this 22 area. I use the word seven level commitments in this 23 area. So, thats the, the areas hanging on the side of the 24 commitment area.

25 If you go look, four of the commitments, were MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

102 1 assessed as white in this area. Three areas were assessed 2 as yellow. And the overall trend in this area we would say 3 is improving.

4 If you go look, there is, we assessed as yellow; 5 ownership and accountability is evident. We dont think 6 were still getting the ownership and accountability, Ill 7 explain that in a few minutes, as we should be.

8 Commitment to continuous improvement is evident.

9 Cross-functional work management and communication 10 is also yellow.

11 Lets go to the next slide.

12 So, what is the basis for that? Well, until 13 recently, the site had continual delays on many of our 14 actions. First, you go look, based on self-assessments, we 15 found that the drive for continuous improvement throughout 16 this shutdown has not been evident. In fact, a lot of 17 places where we think we should be gaining margin, weve 18 actually lost margin over the years.

19 Additionally, if you go look at the present time, so 20 thats looking backwards; at the present time, at that time 21 there were a lot of corrective actions and CRs that were 22 past their late date, and paperwork has not been approved 23 by management to allow that to happen.

24 Scheduled hearings was also a problem, in which our 25 indicators were not sure when our scheduled hearings were MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

103 1 anywhere near what we would like it to be. We understand 2 thats why, because were in an outage now were planning 3 and designing while were in there, so that schedule here, 4 we typically spend up to 90 percent ranges, much lower than 5 that.

6 Identify lack of trust in several areas still 7 exist. If you go look at the messages that we get from our 8 employees, sort of a wait and see attitude on the future.

9 In fact, you know, you know, making a lot of good changes 10 now where we continue to go forward. I think we want to 11 demonstrate that until we get our business plan very 12 visible, well demonstrate those, well continue to go 13 forward after startup.

14 Almost all of our employees developed plans-- or 15 were overdue at that time. What we do is we evaluate our, 16 our people each year, and then have a developmental plan.

17 And this is a first time weve done that as the management 18 team here. And, at the time we did this assessment, they 19 werent complete.

20 So, its just they werent completed, they graded 21 yellow. Didnt say, by such and such a date. We actually 22 completed them on the time we agreed to from a management 23 perspective, but they werent complete.

24 Then, contract training qualifications are a 25 concern. We talked earlier about the amount of work were MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

104 1 seeing with some of the contractors, how Randy brought in 2 and I brought in some specialty contractors on the, on the 3 containment air coolers, you remember, six people.

4 Jack, you talked about that.

5 And then containment, some of the rework we had on 6 the polar crane that we talked about on a meeting earlier.

7 So, those are the reasons some of those areas wind 8 up, those commitments wind up being yellow.

9 Now, if you go down in the individual area. In the 10 individual area, there is five commitments on the side 11 there. One we rate as green, one white, and three 12 yellows.

13 From a yellow standpoint, drive for excellence -

14 nuclear assets of people and plant are continuously 15 improving to enhance safety margins.

16 The next area was rigorous work control, a prudent 17 approach to performing activities in a quality manner is 18 the standard.

19 Nuclear professionalism. Persistence and urgency in 20 identification and resolution of problems is prevalent. If 21 you go look at that area on the next page; overall the 22 quality of our prejob briefs is white, and green for 23 critical evolutions.

24 But remember awhile ago we told you about those 25 routine prejob briefs? If you go look at the performance MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

105 1 indicators we showed you last month. If you go look at the 2 amount of coaching between supervisors and management, 3 management is finding many more coaching opportunities than 4 supervisors. Quite a big delta there. We need to monitor, 5 to bring those two things in line, or at least understand 6 them better.

7 We need to put resources on procedure change 8 backlog. Weve done that. When we look, when we were 9 doing our assessment, the number of outstanding procedure 10 changes we had sort of surprised all of us when we went 11 through that group review. And so, we decided to throw 12 some resources on that and try to make sure we get these 13 procedures in good stead prior to restart.

14 Additionally, if you go look at our rotating 15 equipment is a major rework challenge. Weve had several 16 problems with, where we rebuilt some of our rotating 17 equipment and had problems with it.

18 Then there is also some deferrals. Many of our 19 plant components are not working and we have to do 20 preventative maintenance on our components, which you cant 21 do it with the mode were in. So, there is PMs waiting 22 deferral, and we need to defer those. So, that was a paper 23 issue that we hadnt got them deferred. There was like 72 24 OPMs PMs that had not been properly dispositioned, and then, at 25 that time.

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106 1 And then personal initiative and ownership, we also 2 said was yellow. In fact, ownership to complete the job is 3 a weakness specifically in the maintenance area. We dont, 4 still dont see the ownership that we would like to see in 5 the maintenance area, get jobs done.

6 If go back to the next slide, you see the Safety 7 Culture Assessment that we did. I would like to take a 8 moment and just give you some thoughts from the independent 9 review, that we had the correlation there.

10 Under long term areas for improvement, we noticed 11 several areas where safety is recognized as a value in the 12 organization, but its not consistently understood. You 13 know, thats pretty much the same thing we noted too. So, 14 thats in the independent report that we saw.

15 And one of the things, we talked about ownership 16 awhile ago. Individuals readily accept responsibility to 17 take ownership of problems, but others, some individuals 18 do, but others are still reluctant to do so. So, a good 19 correlation there.

20 And, an integrated and cohesive organization on 21 safety, leadership process does not yet exist. And what we 22 mean by that, is if you go look at our, our process to make 23 sure that, that safety issues are identified like in prejob 24 briefings, you mentioned prejob briefings and operations 25 awhile ago; we have a structured approach that ensures MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

107 1 those safety related activities get talked about on a shift 2 basis. And, you really doesnt find that in the turnovers, 3 so were going to add that.

4 Prejob briefs for critical evolutions was another 5 area noted in the independent assessment report. From a 6 management standpoint, a manager perceived that attention 7 to safety is valued in the organization, more than 8 nonmanagement personnel. Remember that I told about the 9 delta that we saw between some of our work force and our 10 perceptions. That was noticed in the report.

11 Station personnel expressed a number of concerns 12 about continuing FE support, FirstEnergy support, that is, 13 for restart efforts and ongoing support after restart.

14 Thats sort of the same issue that we found. And, you 15 know, if you go look at our business plan, that not being 16 out of clear expectations for the future, we thought is one 17 of the main issues there, that would help resolve some of 18 that at the present time.

19 Activities related to ensuring that sufficient 20 number of personnel necessary and knowledgeable --

21 necessary, knowledgeable skills and abilities are and will 22 be available to conduct work at the station have been 23 stopped during the outage. Once again, that gets back to 24 some of the training that we have stopped, but we are 25 restarting now. And Randy talked about the Operations MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

108 1 Training thats restarted.

2 Under ownership and accountabilities. Owning the 3 problem until its resolved. Maintenance groups scored 4 significantly lower than other groups.

5 In the nuclear professional area, many personnel did 6 not see evaluation process as tied to professional 7 development. You know, we would say that too, weve not 8 effectively used our professional development plans as well 9 as we should at this station.

10 Then under drive for excellence. Timeliness of 11 issues, issue resolution is problematic and must be 12 improved. Thats that drive to find and fix problems.

13 Were pretty good at finding the problem, but were not as 14 driven at fixing the problems as we should be. In fact, 15 even today, if you had to ask us as a management team, wed 16 tell you that there are probably some things that we found 17 last year that we think we should have fixed by now; in my 18 opinion anyhow, that havent been fixed.

19 Personally, I can give one specific example, I 20 looked at the other day, going to go do some insulation for 21 the turbo charger on the diesel. And you know, I thought 22 that would have been done by now, but we still dont have 23 it done. So, Im sort of disappointed on that.

24 So, just in summary, if you went in and looked at 25 the independent consultant report they wrote and looked at MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

109 1 all the issues they found, there is a bunch of positive 2 issues. I gave you a lot of negatives today. But, in my 3 mind, it was a very good correlation in that report, and in 4 some of the areas we assessed ourselves in. There are also 5 some areas that are there, that we even need to look harder 6 at as we go forward.

7 Thats all I have, thank you.

8 Oh, yeah. You know, we have a public meeting in a 9 few weeks, where well go through the entire report and the 10 actions taken. I thought I would take todays opportunity 11 to just wet your appetites some.

12 MR. GROBE: Appreciate that, 13 Lew.

14 I have a question or two and a couple observations.

15 Could you go back to slide 49, please. There you 16 go.

17 I just wanted to make the observation, two 18 observations on this. One, is that Im not aware of any 19 other plant in the United States that has this kind of a 20 process. The procedure that you were referring to has 21 about roughly 50 pages of tables like this, on every one of 22 these attributes.

23 MR. MYERS: Right.

24 MR. GROBE: And the NRC has 25 no requirements in this area. So, with respect to these MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

110 1 thresholds or even what areas, what attributes youre 2 looking at, there is no guidance or requirements that the 3 NRC has promulgated in this area. So, its particularly 4 noteworthy that you folks have taken this on with a certain 5 amount of vigor. You earned the opportunity to develop 6 this procedure.

7 MR. MYERS: Right.

8 MR. GROBE: By creating a 9 fairly highly risk significant situation from a bad safety 10 culture. So, its, I wanted to make the observation that 11 this is an area that is somewhat cutting edge, and clearly 12 the NRC has no requirements in this area.

13 It makes the evaluation of this more challenging for 14 us. Clearly, its an area that we need to be confident is 15 adequately restored for safe operations prior to the NRCs 16 authorization for restart, but its a uniquely challenging 17 area; and to that end, we put together a fairly impressive, 18 I think, team of folks, six folks that are in the midst of 19 an inspection of this.

20 Again, a couple of weeks ago, in late March, when we 21 received the first report from your outside consultant, 22 there were three of the team members there for the 23 presentation of those preliminary findings; and continue 24 with all, five of the six folks on site last week, and 25 several more weeks of inspection coming up.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

111 1 That team includes a broad spectrum of folks, 2 including people with 20 or more years of experience in 3 doing these kinds of evaluations, organizational 4 effectiveness, Safety Culture, which is just a term of art 5 type of evaluations; as well as two former industry 6 executives who personally had proven track records in 7 recovery of poor organizational performance.

8 So, its a robust team thats going to be taking a 9 very hard look at this and evaluating the approach that 10 youve taken.

11 I had one question. It concerns the individual 12 areas; on one of your slides you indicated -- Im getting 13 my pages mixed up here, but you indicated that you had a 14 two-day meeting with all of your managers, and you looked 15 at this process and applied it on each work group.

16 MR. MYERS: Right.

17 MR. GROBE: And when you rate 18 an area as yellow, in an individual attribute, whether its 19 ownership or accountability of the individual or plant 20 management level or something at the individual level, I 21 would imagine that there is a spectrum of performance in 22 that area across different work groups; is that correct?

23 MR. MYERS: Absolutely.

24 MR. GROBE: So, if you rate 25 someone as yellow, there could be some work groups that may MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

112 1 be green in that area and other work groups that may not be 2 so good, may be red in that area; is that correct?

3 MR. MYERS: Well, for 4 example, right now, we think pretty highly of the progress 5 were making in Operations, but you go look at Chemistry 6 and HP at the time we did this, there was a lot of 7 questions to be answered. So, thats absolutely correct.

8 MR. GROBE: Okay. Could you 9 describe just briefly, then well move on to Bills area.

10 Could you describe briefly what your restart criteria is in 11 this area that you currently identified?

12 MR. MYERS: Yes. I have that 13 with me, as a matter of fact. We would expect to see, what 14 we would define ourselves as a positive trend in Safety 15 Culture, for restart and improving Safety Culture trend.

16 Every area assessed must be, must not, they dont have to 17 be white or green. Some areas may be yellow. But we would 18 not expect to see reds. Okay? So, in general a positive 19 safety trend with no major areas being red.

20 MR. GROBE: Could you back up 21 one slide, please?

22 So, what youre talking about is the central areas 23 with the blue arrow?

24 MR. MYERS: Thats correct, 25 yes. And I would tell you, once again, you have to look at MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

113 1 each area in what youre doing. Like the readiness for 2 Mode 4 will be different than the readiness for Mode -- for 3 fuel load, okay. So, each one, it takes a lot of 4 management attention to say, are you, the question is, do 5 you remember, I hate to use the Challenger event, but why 6 should you go forward. And thats what you should be doing 7 when you do this.

8 This is just another management tool Im very 9 excited about. If you want to be a good manager, this may 10 help you some in being a good manager in helping you 11 understand whats going on in your organization, so Im 12 pretty excited about this tool myself.

13 MR. GROBE: Any other quick 14 questions?

15 MR. MENDIOLA: I have two 16 questions. Question number one; any new program is 17 implemented or used, if you will, in response to any of 18 these areas, obviously, when assessed right out of the box 19 cant be green, probably is red, even white, probably 20 starts out as yellow the first time its assessed. And, 21 clearly, you would hope that the program would turn around 22 and eventually work its way toward green.

23 MR. MYERS: Right.

24 MR. MENDIOLA: But understanding 25 that, has there been any area or any program that youve MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

114 1 implemented that has been, if you will, certainly 2 frustrating to your organization, has been remaining yellow 3 longer maybe than you wanted it to, through the assessments 4 that you made?

5 MR. MYERS: Well, there is 6 two or three programs that come to mind right now that are, 7 we are, I would think of also. One would be the quality of 8 our licensing information. I feel fairly good about that 9 presently, but from looking back, making sure that our 10 licensing information has good quality.

11 And, the other program would be our Corrective 12 Action Program. You know, we wrote, I dont remember how 13 many thousands it is, ten thousand or so CRs, you know.

14 Its a massive number of CRs. And as I just heard right 15 here, walk down the entire plant. And then to deal with 16 all that is complex and difficult, you know. But its a 17 huge, huge task; and, especially when each CR generates 18 about four corrective actions on the average.

19 So, keeping up with all that, and tying stuff 20 together properly, and getting through this process with a 21 good Corrective Action Program, I would say its probably 22 the most frustrating thing that Ive tried to do in my 23 career.

24 I believe that our Corrective Action Program got us 25 into this, and its got to help dig us out. So, we really MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

115 1 use the Corrective Action Program for every one of the 2 Building Blocks. It would have been easy just to write 3 work orders or work requests or blanket work orders for all 4 that stuff in containment. We wrote CRs and CAs, and now 5 were in the process of closing them all out, and its time 6 consuming. But its, I still believe its the right thing 7 to do. That program comes to mind.

8 MR. MENDIOLA: The second 9 question, of course, is maybe a little unfair.

10 MR. MYERS: This never stops.

11 MR. MENDIOLA: Obviously, 12 FirstEnergy has other units in it. Both Perry and Beaver 13 Valley are faced with major evolutions in the coming year, 14 outages, and so forth.

15 MR. MYERS: Right.

16 MR. MENDIOLA: Has this been 17 applied to those units as well, the assessment methodology?

18 And the reason I ask that, is to determine if there is any 19 feedback from their use of this methodology as applied to 20 Davis-Besse?

21 MR. MYERS: We have not 22 applied that at this time. Theyre familiar with the 23 process. Theyve looked at it. Theyve sort of assessed 24 theirself for Safety Culture, but nothing to the degree 25 that we have over here. And, thats because were piloting MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

116 1 the program.

2 Once we get the program through the restart, were 3 going to turn it into some kind of nuclear operating 4 procedure and look at it across our sites. But we have to 5 perform assessments of Safety Culture at each one of our 6 sites, but nothing like weve done here. Okay?

7 MR. MENDIOLA: Thank you.

8 MR. GROBE: Bill, we have 9 several more slides to go, and I dont want to leave off 10 either any of the three topics we have left. Youve 11 certainly got a tremendous amount of data that youre 12 prepared to present. I think its important that the 13 public have an opportunity to see this data. Many of us 14 have already reviewed this information.

15 So, if you could just kind of get through your 16 presentation while covering it, but do it a little bit 17 spritely, Id appreciate it.

18 MR. PEARCE: No problem.

19 What this is about, my section is Safety Conscious 20 Work Environment Employee Survey.

21 As you remember last August, we did a survey. And 22 this is the next one now. It was, this one was conducted 23 March 26 through the 28th. We actually, this survey, we 24 got good response out of it. It was a voluntary 25 participation survey; and out of 1448, population of 1448, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

117 1 we got 1138 responses. There were 36 questions on this, 2 which 26 were the same as the August 2002 survey.

3 And we kind of structured it around the four 4 pillars. So, the next slide, shows you the four pillars.

5 And all that does is shows you the number of questions at 6 top that cover each pillar.

7 Next slide.

8 Im going to go through some of these and give you 9 some examples. This is the way this thing set up. You can 10 flip through it yourself and look at it. You see August 11 2002 is on the left, the result and then on the right is 12 the March survey we did this year.

13 And this question; "As a nuclear worker, I am 14 responsible for identifying problems and adverse 15 conditions." We had 98 percent positive result in 2002, 16 and in 2003, we went to 99. So, Ill go through a few of 17 these and skip through some of them.

18 Next slide.

19 The question was, "If I had a nuclear safety or 20 quality concern, I would raise it." We got a 98 percent 21 positive response. We didnt ask that question last year.

22 Next slide.

23 You see, "Managements expectations regarding safety 24 and quality are clearly communicated." We had a 55 percent 25 response in 2002. And now weve gone to 89 percent MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

118 1 positive response. And then the one on the right, we 2 didnt ask this question in 2002, but we got a 63 percent 3 positive response.

4 Next slide.

5 "My first line supervisor/foreman addresses concerns 6 brought to his/her attention." And last year, we got 61 7 percent positive response. This year, we got a 90 8 percent.

9 Next one is, "Management is willing to listen to 10 your problems." We got 63 percent positive response last 11 year. 82 percent this year.

12 Next slide.

13 "Constructive criticism is encouraged." Went from 14 53 last year to 76 this year.

15 "I believe my management cares more about 16 identifying and resolving nuclear safety, quality, and 17 compliance issues than cost and schedule." I think this is 18 an important one here. You look at our root cause. We 19 almost doubled it, or we had a large increase there. Its 20 still not as good as we would like to get it. Ill talk 21 about that at the end, but we got a very good increase on 22 that.

23 MR. GROBE: Bill, just a 24 quick question. Both of these surveys were only permanent 25 plant employees; is that correct?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

119 1 MR. PEARCE: No, this was all 2 employees at the site. And at the end, Im going to break 3 that down a little bit. Ill show you something with 4 that.

5 MR. GROBE: Okay.

6 MR. PEARCE: Okay, Slide 66.

7 The next one is, "I know how to write -- didnt ask this 8 question last time, but we got good response on both of the 9 these, as you can see. Just go on to the next slide.

10 67. "I felt free to approach management regarding 11 any nuclear safety or quality concern." You see the 12 improvement there.

13 "I believe I can raise any nuclear safety or quality 14 concern without fear of retaliation." We got a good 15 improvement there.

16 Next slide.

17 69, "Identification of potential nuclear safety/

18 nuclear quality issues through the Condition Report process 19 is effective in our organization." Went from 57 to 80.

20 "Resolution of potential nuclear safety and nuclear 21 quality issues, including root cause and broader 22 implications, through the Condition Report process is 23 effective in our organization." We went from 45 to 74.

24 And again, I think --

25 (Discussion off the record - confusion of slide numbers.)

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120 1 MR. PEARCE: Now 69. "I am 2 aware of the Employee Concern Program and its purpose." We 3 didnt ask those two questions. We got good responses.

4 So, now were on 70? 70 is, "I believe issues 5 reported through the Employee Concern Program will be 6 thoroughly investigated and objectively dispositioned."

7 We got 77 percent positive responses.

8 And, "I believe that Employee Concerns Program will 9 keep my identity confidential at my request." We went from 10 66 to 76.

11 Then 71. "I believe that upper management supports 12 Employee Concerns Programs." We went from 60 to 80.

13 And the next slide, 72. We didnt ask either one of 14 these questions. "Im aware of FENOC Safety Conscious Work 15 Environment Policy." 96 percent.

16 "I am aware of the Safety Conscious Work Environment 17 Review Team and its purpose." 82 percent.

18 73. "I believe my work environment is free of 19 harassment, intimidation, retaliation and discrimination."

20 We get a, 2002 were at 67. We went to 77.

21 And then the last slide, in August of 2002, this is 22 the question, "Within the last six months, I have been 23 subjected to HIRD for raising" -- thats harassment, 24 intimidation, retaliation and discrimination -- "for 25 raising nuclear safety, quality or compliance concerns MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

121 1 while working at Davis-Besse." And, you can see that we 2 went from 2002, a positive response of 7 to that question, 3 to 8 in 2003.

4 And, "I am aware of instances that occurred in the 5 last six months in which workers in my work group have been 6 subjected to harassment, intimidation, retaliation and 7 discrimination for raising nuclear safety, quality or 8 compliance concerns." And we went from 12 to 15 percent.

9 But look at the next slide. Go to the next slide.

10 This is, we segregated this to FENOC only, because a 11 training, the training that we have done, we focused on 12 training FENOC supervisors and management and FENOC 13 employees. And this was the same questions when you break 14 out FENOC only. And you can see here, we went from a nine 15 percent in August to a five percent in March for those same 16 two questions we asked previously. And from an August 17 question about, I am aware of instances in which thats 18 happened; we went from 15 percent in 2002 to 10 percent 19 now.

20 So, where weve trained people and focused, and they 21 understand what the issues are, we saw the expected 22 improvement in this area.

23 So, let me give you some feedback that we got. Lew 24 presented the results to our employees at an All Hands 25 Meeting. And on these two questions, they were, they said MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

122 1 they were confusing questions, and they were reversed in 2 logic. In order to agree with it, you had to answer on the 3 other side of the page. And they believed that that kind 4 of stilted the results for some, in some manner.

5 So, Im not trying to tell you that we dont believe 6 the results. We do believe the results. And we know that 7 we have some issues there. But weve shown, where we 8 focused and people understand Safety Conscious Work 9 Environment, weve gotten the result that we expected to 10 get there. Were seeing improvement, and so, overall, I 11 think weve got a positive result.

12 And in fact, if you look at the entire survey -- go 13 on to the next slide.

14 MR. MYERS: Wait a second.

15 There is like over a hundred people in the room where I did 16 this. When I got to this question, I tell you, before I 17 got through that, I felt like I needed HIRD, you know, 18 because they were about to attack me. They said, this 19 question was not a good question. It has a double negative 20 in it. Some misread it. They were actually hollering in 21 the audience. So, there was a lot of push back when I got 22 to this one question about our employees.

23 So, it does give us some feedback having that many 24 people in the room and listening to them. So, Ill share 25 that with you. Its sort of interesting.

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

123 1 MR. PEARCE: So, lets go to 2 the last one. So what, from the survey --

3 MR. RULAND: I have a question 4 about the survey design Youve chosen a scale of 5 disagree, agree, dont know.

6 MR. PEARCE: Right.

7 MR. RULAND: Can you tell me 8 why you chose that scale? You know, I read some of these 9 questions, and you know, there is some that, you know, I 10 could imagine an employee saying, well, I kind of agree 11 with that, or I might not strongly agree, but I agree.

12 Im interested in why you did this survey design the 13 way you did? Not using a five point scale, you used a 14 three point.

15 MR. PEARCE: This is a standard 16 survey we did. 26, or I dont remember the number to give 17 you an exact number, but there is a number of these are our 18 standard instruments that we use. Its all in the 19 industry. Its the same survey given across the industry.

20 So, it gives us some way then to compare ourselves to other 21 plants in the industry and see how we rate. Thats the 22 reason.

23 The majority of the questions, I believe there is 21 24 that are the standard questions. Dont hold me there, but 25 I believe thats right. So, we tried to stay in a standard MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

124 1 format.

2 MR. RULAND: So, you used this 3 foremat because you could compare it with the industry.

4 Could you speak a little bit about that, about that 5 comparison, if you did it?

6 MR. PEARCE: Well, we just got 7 the survey, we just got it back, we have to go do that 8 now. We just got the results out in the last few days.

9 MR. MYERS: This is pretty 10 hot off the press.

11 MR. RULAND: All right.

12 MR. GROBE: Could you go back 13 to 75 for a moment?

14 MR. PEARCE: Certainly.

15 MR. GROBE: Its easy for you 16 to say that, certainly. Shes over there trying to find 17 75.

18 Whats the relationship between the number of 19 contractors that may have taken this survey as to FENOC 20 employees?

21 MR. PEARCE: I can give you 22 those numbers. I have it right here.

23 MR. GROBE: It doesnt need to 24 be precise. Is it like three times as many, five?

25 MR. PEARCE: There were 1138 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

125 1 total, 665 FENOC, 377 contractors.

2 MR. GROBE: Okay.

3 MR. MYERS: And the way we 4 did this, we got what is it, 79 percent?

5 MR. PEARCE: 79 percent I think 6 was the number.

7 MR. MYERS: So, its not a 8 low population, its high population.

9 MR. GROBE: So, in rough 10 terms, there is about twice as many FENOC as local 11 contractors.

12 MR. PEARCE: Thats correct.

13 MR. GROBE: Im not real quick 14 to dismiss the data out of hand. I understand there was 15 some questions. But, some questions on the interpretation 16 of the question.

17 MR. MYERS: Right.

18 MR. GROBE: But lets just 19 take the last question on 75.

20 MR. MYERS: Okay.

21 MR. GROBE: You had in March 22 of 2003, looking at the total population, you had 15 23 percent saying yes. If, if I understand that correctly, 24 ten percent of those, the FENOC employees said yes. I 25 believe what that tells me is probably 25 percent of your MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

126 1 contract employees said yes. To get an average of 15.

2 And that, Im troubled by that. I think, Im 3 curious as to whether or not youre going to spend a little 4 more time looking at this data and trying to decide whether 5 youre going to need to do some additional evaluation in 6 this area. I might have caught you cold.

7 MR. PEARCE: No, 16.4 percent 8 of the contractors.

9 MR. GROBE: I think I need to 10 look at the data some more then. Because Im not sure how 11 you get an average of 15 with 16.4 percent for one third of 12 the population and 10 percent for two thirds of the 13 population. That tells me that that should be down around 14 11 or 12.

15 MR. MYERS: I think youre 16 right.

17 MR. GROBE: Im not a great 18 mathematician, but I think it makes sense.

19 MR. PEARCE: I have the numbers 20 here. Youre welcome to look at them all, Jack.

21 MR. GROBE: I think this area 22 needs to be looked at. Okay? Good. Lets move on.

23 MR. MYERS: We gave you this 24 so quickly. We just got this data this week from our 25 employees, so its very, we havent really analyzed this MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

127 1 yet.

2 MR. PEARCE: Let me tell you 3 one thing. I dont want this to come across defensive. I 4 agree with you, we are going to do something with this. We 5 are going to continue to do something with it, as we have 6 our own employees. We need to focus more in the contractor 7 area in some of these. And weve gotten some success out 8 of the FENOC area. Now, weve got to focus more on the 9 contractor area.

10 MR. STEVENS: I was going to 11 say --

12 MR. PEARCE: Well, let me 13 finish, Mike.

14 MR. STEVENS: Sorry.

15 MR. PEARCE: The issue that I 16 want to tell you about is, whats happening is, with this 17 question, is when folks havent been trained on what is a 18 Safety Conscious Work Environment, what is a safety issue; 19 what you get a lot of, I read some of the responses back 20 from the last one and this one; and what you get a lot of 21 is people responding to their relationship with their 22 management.

23 If they feel like theyve been harassed about their 24 work, its really not got anything to do with safety issues 25 necessarily, but in their mind, thats a harassment, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

128 1 intimidation, retaliation; and I believe that, in my 2 belief, is thats whats driving a lot of this question.

3 Because it even disagrees with some of the other earlier 4 survey where we asked some similar areas and we get a good 5 result. And then we get to this particular question, and 6 we get a bad one.

7 So, there is some confusion. Like I said, Im not 8 trying to discount or throw it out or anything, but there 9 is a confusion with it.

10 MR. GROBE: I apologize. I 11 think I interrupted before you got to your conclusions.

12 MR. PEARCE: Okay. Conclusion 13 is, I think weve got significant improvement in the 14 majority of the questions here. And those that youre 15 asking about there are the ones we dont believe that we 16 got the improvement that we would have liked to have 17 gotten. And were going to have to study those further, as 18 you said.

19 We think that theyre is still, the survey tells us 20 that there is additional work demonstrating management 21 commitment to Safety Conscious Work Environment, to 22 continuing to improve confidence in the Corrective Action 23 Program, and to continue to improve confidence in the 24 Employee Concerns Program.

25 That those are areas that our survey has told us MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

129 1 that we may have, even though we may have improved in them, 2 those are areas we still need to drive on to get better 3 results out of. And, were going to continue to do that.

4 MR. GROBE: Could we hear 5 some more on this one, this last area next month?

6 MR. PEARCE: Sure.

7 MR. GROBE: Im sorry. Let 8 me be specific. The area Im talking about is slide 74 and 9 slide 75.

10 MR. PEARCE: I understand.

11 MR. MYERS: Mike.

12 MR. STEVENS: Are you ready to 13 go on to my slides?

14 MR. MYERS: Is there 15 something you have quick you were going to add?

16 MR. STEVENS: I think having it 17 at the next meeting would be good. We are doing some stuff 18 in that area, but well get it all wrapped together.

19 Could we have the next slide.

20 I want to talk today about our progress towards 21 Restart in three areas; Major Milestones, Integrated 22 Schedule and show you some Performance Indicators that 23 were using to track our outage work activities.

24 Next slide.

25 Im not going to go through a list of things were MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

130 1 making progress on. Its similar to what weve already 2 previously presented.

3 We are preparing for the Mode 4, Mode 3 pressure 4 test. It looks like thats going to be mid to latter part 5 of May. And then startup is about a month after that.

6 Were pursuing all of our options with the high 7 pressure injection pump to support that in the schedule.

8 Next slide.

9 This slide shows the total number of activities in 10 our outage schedule. The top line is the total number.

11 The middle green line is the number of activities 12 completed. And the bottom blue line is the to go. This is 13 to give you a sense of how many work activities were 14 accomplishing here.

15 MR. GROBE: Those lines 16 across the bottom are weeks?

17 MR. STEVENS: Yes.

18 MR. GROBE: The to go line 19 looks kind of flat.

20 MR. STEVENS: Well, its been 21 offset by the increase in activities with the constant 22 work-off rate.

23 MR. GROBE: Okay.

24 MR. STEVENS: Okay. And part of 25 the reason for that dip in the first peak, is when we did MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

131 1 our scrub and definition of the work that we needed to do, 2 and generated some additional Condition Reports. As the 3 Condition Reports got evaluated, the corrective actions 4 came, out which we were anticipating.

5 Next slide.

6 This is Containment Health, Condition Report 7 Evaluations. You can see how much progress weve made; the 8 number of closed and the number remaining open.

9 Next slide.

10 Heres the Corrective Actions that have come out of 11 those Condition Reports.

12 Next slide.

13 This is our System Health Restart Condition Report 14 Evaluations. Made good progress there. Had quite a few 15 evaluations to complete. Doing that pretty well.

16 Next slide.

17 Here is the Corrective Actions. So, were 18 integrating these Corrective Actions into our schedule on a 19 system basis to support return of the plant in the right 20 sequence; to operations, perform testing and startup.

21 MR. MYERS: Whats 22 interesting here, if you look at this line, we dont close, 23 in our process, we dont close a CA out until the work is 24 complete. So, this actually reflects completions in the 25 field too. Okay?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

132 1 MR. GROBE: Good.

2 MR. STEVENS: Next slide.

3 This is our On-Line Corrective Maintenance Backlog.

4 You can see were not coding them for on-line, or filling, 5 by way of corrective maintenance.

6 Next slide.

7 In summary, I think were making good progress.

8 Were moving towards restart. High pressure injection 9 pump, electrical distribution remain challenges in that we 10 havent fully defined that yet. We continue with our 11 readiness meetings. And like I said, I believe mid to 12 latter part of May, well be doing pressure testing, with 13 startup about a month after that.

14 MR. GROBE: Okay.

15 MR. STEVENS: With that, Ill 16 turn it over to Clark.

17 MR. PRICE: Thank you, Mike.

18 I would like to complete our presentation today by 19 giving a high level overview status on our 350 Restart 20 Checklist items and also our overall Restart Actions.

21 Next slide.

22 This is the Restart Checklist items that were 23 discussed earlier in the meeting. This is at the beginning 24 of those; checklist item 1 and item 2 are on this graph.

25 And the color coding, I can explain real briefly. Green MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

133 1 means were completed with that particular item. The 2 brownish color is a not applicable item. The light blue 3 color is something that is progressing, however its 4 waiting on plant conditions for, to be able to proceed 5 further. And then the darker blue or purple, whatever 6 color that actually is, are activities that are actually 7 progressing right now.

8 In the 1-Bravo area, which is the Organizational/

9 Programmatic and Human Performance Issues. We have one 10 item left in the discovery area, in that particular 11 checklist item. That is an engineering assessment that is 12 going on right now, and well be completing this week and 13 is going through our Corrective Action Review Board 14 tomorrow for final review. So, that should be cleaning 15 up. And that will be our very last discovery item relative 16 to our implementation action plan or our 350 checklist 17 items.

18 The reactor vessel, reactor pressure vessel head 19 replacement is light blue right now. Thats waiting for 20 full temperature/full pressure tests on the Reactor Coolant 21 System.

22 We have our ILRT completed, which is in the 2-Bravo 23 area. Were showing 99 percent there. Thats in our 24 containment vessel restoration. Following the head 25 replacement, the Integrated Leak Rate Test was the final MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

134 1 activity in that area, however we have a few local leak 2 rate tests to finish up and that will go one hundred 3 percent complete.

4 We talked before, Randy Fast talked about the 5 activities going on in Containment, which is in the 6 2-Charlie area. Were making good progress there. Are 7 getting ready to complete most of those activities by the 8 end of the month.

9 The containment emergency sump, we spoke about 10 earlier. The installation of the sump is complete. We 11 have a few minor work items, so were not reporting a 12 hundred percent yet there, but its close to completion.

13 And we have some work yet going on in the auxiliary 14 building in boric acid systems that are outside the 15 containment structure with continued cleaning and 16 inspection. And that has left inspections going on there 17 that should finish up shortly. So, were making good 18 progress in that section.

19 Next slide.

20 The next slide is our Safety Secure Significant Programs that 21 are on the Restart Checklist. I would like to talk about 22 our progress since last month.

23 Since last month, we have completed the Corrective 24 Action Program; both the discovery and the implementation 25 activities. The Operating Experience Program has also MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

135 1 completed its implementation of its corrective actions.

2 Our Quality Audits has completed the discovery plan and is 3 well along the way and near completion of the 4 implementation of corrective actions.

5 And another change, well, weve had the Radiation 6 Protection Program Inspection Program Exit this morning 7 that was discussed earlier. We still have a few corrective 8 actions to work off there, and, but were making good 9 progress.

10 And then the very last checklist item that we have, 11 the one at the bottom, which is Completeness and Accuracy 12 of Required Records and Submittals to the NRC. Were 13 progressing on that. We have an implementation action 14 planned now defining all the activities that well do to 15 address that, that checklist item, and were progressing on 16 those.

17 Next slide. Final slide for the 350 checklist 18 items. Were making good, continue to make good progress 19 on Adequacy of Organizational Effectiveness and Human 20 Performance. Thats the first item up there. Continue to 21 work off our corrective actions in the improvement plan.

22 Another area moving down, we are now progressing, 23 showing progress on an implementation activity associated 24 with the Systems Readiness for Restart. Weve added this 25 previously. We were showing Restart Readiness Reviews in MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

136 1 that area. This now shows a percentage complete relative 2 to the Condition Reports and Corrective Actions that have 3 come out of the System Health Readiness Review Process 4 through the System Health Building Block Plan.

5 And the one right below that, Design Calculation 6 Resolution. We completed the discovery activities 7 associated with that checklist item, and the implementation 8 and corrective actions are included in the line up above 9 it.

10 Then the last one I would like to speak to is Test 11 Program Development and Implementation. Again, the 12 Integrated Leak Rate Test also fit into the line item. But 13 again now, this particular checklist item is on hold and 14 will be progressed further when we do our Mode 3 pressure 15 test.

16 MS. LIPA: Clark, do you have 17 the number for that? I cant quite read it.

18 MR. PRICE: 66 percent.

19 MS. LIPA: Thank you.

20 MR. PRICE: So, if there is no 21 questions on the Restart Checklist. Were making good 22 progress. And this now transitions to our overall restart 23 actions, which include the 350 checklist items, as well as 24 items that we identified through our criteria that weve 25 developed that we want addressed and completed prior to MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

137 1 restart.

2 This first draft shows the Condition Reports that 3 weve discussed a lot about Condition Reports today, which 4 we generate whenever we have any issues identified through 5 any of our Building Block Plans or any other normal 6 day-to-day activities, we generate Condition Reports to 7 address those issues and drive resolution.

8 Mike Stevens referred to this a little earlier, this 9 was bulk work that was in the schedule. This Condition 10 Report Evaluations, you can see were working down. We 11 have 96 percent of the evaluations completed on Condition 12 Reports that have been identified to-date. And, we have 13 still 300 plus Condition Reports to, theyre still in 14 evaluation.

15 What I will say though, last month I talked about 16 this, and I said that number should be worked down to about 17 the hard remaining few. There is about a hundred in that 18 number thats still remain from the Building Block 19 Discovery Activities that are the ones that have emerged 20 and weve talked about today as a number of the issues that 21 we have.

22 The additional 250 roughly on that are continuing 23 activities that we have day-to-day as our normal process 24 during the outage of identification of issues that we want 25 resolved, at least evaluated prior to restart, to determine MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

138 1 whether we want to implement any corrective actions 2 associated with those.

3 So, there is an ongoing process. Like I said, since 4 the last public meeting, we have added 250 Condition 5 Reports to this population.

6 MS. LIPA: Clark, when you 7 talk about prior to restart, are you talking about Mode 2 8 or Mode 1?

9 MR. PRICE: Im talking Mode 10 2.

11 What this curve also has on it are a couple of 12 projection lines. Based on work-off rates that weve had 13 over the last four weeks, we do a couple different 14 projections based on the average over the last four weeks, 15 and the best weve seen that we have performed in the last 16 four weeks; and that puts us out into the middle of May 17 time frame for completion of these Condition Reports.

18 Again, our process continues to add Condition 19 Reports to restart if the Restart Station Review Board 20 determines it necessary, but right now, based on the 21 work-off rate, we should be completed during the middle of 22 May.

23 The next graph, our Restart Corrective Actions that 24 come out of those Condition Reports. Again, showing what 25 we have left. We have currently 1600 roughly Condition MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

139 1 Reports or Corrective Actions remaining that have been 2 classified as restart. Thats down from almost 2600 that 3 we had last month at this time.

4 Again, we have a projection rate here based on our 5 work performance that would put us out into the first or 6 second week of June at the current work-off rates weve 7 been experiencing.

8 So, we feel that both the Condition Reports and the 9 Corrective Actions, and the work-off rates that weve been 10 able to maintain and achieve fit into our restart schedule 11 and continue to support the milestones that we have in our 12 restart plan.

13 Any questions?

14 MR. GROBE: Nope.

15 MR. PRICE: Okay.

16 Okay, Lew.

17 MR. MYERS: In closing, you 18 know, we were pleased with the exit today that we had in 19 the Health Physics Area. As I said there, Health Physics 20 is something pretty unique to our industry, so being on the 21 350 list in that area is not something I was excited 22 about. But we were pleased with the exit that we had 23 today. I will tell you that.

24 Were pleased with the progress that weve made this 25 month in the Integrated Leak Rate Test. The work MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

140 1 continues. A lot more work ahead of us, we know that.

2 Corrective Action Evaluations are being completed, 3 as that graph shows. The corrective, the Corrective 4 Actions are also being completed. Many of the improvements 5 have been made in our plant, and not only from a program 6 standpoint, our Leak Rate Program, FLUS, seals, weve shown 7 a lot of those things today, that we believe even in our 8 containment for this age of a plant would probably be an 9 extremely clean containment when we start back up.

10 Two issues of concern are still upon us, if you 11 will. The HPI pump, I think, is our big issue for us; and 12 the Safety Culture is something that we got to continue to 13 take actions on, strong actions.

14 Were getting ready, I will tell you, to take some 15 actions, which youll hear about in the next public 16 meeting, that will ensure that we have the right resources 17 in these areas also. You know, so were going to be doing 18 some things to really focus, it take some management time, 19 especially in the Safety Culture area.

20 Mode 4 is important to us. Its our next 21 milestone. We understand we have to meet that safety 22 evaluation, get that complete to get to Mode 4. So, thats 23 very important to us and were working hard.

24 I thank you for your attention today.

25 MR. GROBE: Okay. Thank you MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

141 1 very much.

2 Why dont we just take a couple minute break while 3 we reorient ourselves and open up for questions from the 4 floor. Okay.

5 (Off the record.)

6 MR. GROBE: This is the time 7 of the meeting when we give an opportunity for any members 8 of the public or other interested folks to ask questions, 9 and well attempt to respond to them. Christine and I will 10 field questions today.

11 Im not sure if we have members, elected officials 12 or local representatives that are still present, but if 13 they are, I would like to give them an opportunity to go 14 first.

15 No? Tonight. Okay.

16 Any other questions or comments anybody would like 17 to make?

18 MR. KERFF: My name is Joe 19 Kerff. I live in Ohio. I have a property on Lake Erie.

20 And, I have been traveling to Lake Erie Islands for 35 21 years. And, Im a metallurgical engineer. Im on the 22 Board of Ohio Citizens Action. And I hosted a Chernobyl 23 child for a couple of summers because of a nuclear event 24 that happened there.

25 When I look at these statistics and the presentation MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

142 1 on slide 73, Conscious Work Environment Employee Survey.

2 In March of 2003, it says that twelve percent of the 3 employees think theyre going to be intimidated if they 4 become whistle blowers, and eleven percent dont know if 5 theyre going to be intimidated if they become whistle 6 blowers. To me thats 23, nearly a quarter of the total 7 work force hasnt got it yet, even though there was a 8 Chernobyl-type event that nearly occurred on the shores of 9 Lake Erie.

10 And I dont understand that. Im very uncomfortable 11 with that statistic, that there is still a great number of 12 people who work at the plant, that think that if they do 13 the right thing, that there is going to be retaliation.

14 MR. GROBE: Appreciate your 15 comment. I think thats some of the same sentiments that 16 were expressed during the course of the meeting. I believe 17 this survey was just completed within a week or so.

18 Where is Bill Pearce?

19 MR. MYERS: Hes gone. Hes 20 left.

21 MR. GROBE: Oh, he left. I 22 think it was just very recently that this survey was 23 received. Randy?

24 MR. FAST: Two weeks.

25 MR. GROBE: About two weeks MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

143 1 ago. And FirstEnergy has been in the process of data 2 reduction and trying to figure out what this data means.

3 Likewise, I believe the number Bill told me before 4 he left was about 22 percent on that one specifically that 5 I was asking about, 22 percent of the contractors appeared 6 to be saying that, that they had some concerns about 7 harassment, intimidation, retaliation and discrimination.

8 One of the challenges in this area are separating 9 folks that are concerned about working conditions and 10 translate that into other concerns or whether theyre truly 11 concerned. And we asked FirstEnergy to get into this a 12 little bit more deeply and try to understand exactly what 13 that data is telling them, and report out at our next 14 monthly meeting.

15 So, I think your observation is a good one. Its 16 one that we share, and its something that we need to look 17 at. So, appreciate that, thank you.

18 Other questions or comments?

19 Did I get a timid group this afternoon; or are you 20 just all satisfied, or hungry?

21 MR. KERFF: Can I have a 22 follow-up question.

23 MR. GROBE: Sure.

24 MR. KERFF: Who at the NRC 25 will ultimate have the responsibility for signing off at MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

144 1 Davis-Besse?

2 MR. GROBE: The question was, 3 who at the NRC will ultimately have responsibility for 4 signing off at Davis-Besse. I assume by signing off, you 5 mean authorize to restart.

6 MR. KERFF: Allowing it to 7 restart, sure.

8 MR. GROBE: The panel which I 9 chair, and most of the members of the panel here today, has 10 the responsibility to make a recommendation to the senior 11 executives in the NRC, and in the reactor program, two people 12 in particular, as to whether or not the panel believes the 13 plant is or is not ready for restart. And, when the panel 14 is convinced that it believes the plant is ready, well 15 make that recommendation and not before.

16 We make that recommendation to my boss. His name is 17 Jim Dyer. Hes the Regional Administrator in Region III, 18 which is in Chicago. And, he consults with two people.

19 One is the Director of the Office of Nuclear Reactor 20 Regulation. Hes the individual that has responsibility 21 for safety across the entire country. Jim has the 22 responsibility here in the midwest. And the other 23 individual is the Deputy Executive Director for Reactors.

24 Thats Sam Collins boss. His name is Bill Kane.

25 So, those are the three individuals. Jim Dyer has MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

145 1 the ultimate responsibility, consulting with Sam Collins 2 and Bill Kane. And he wouldnt even consider the question 3 until the panel was satisfied that everything that needs to 4 be done is done.

5 Amy?

6 MS. RYDER: My name is Amy 7 Ryder. Im with Ohio Citizen Action. I have two 8 questions.

9 One was just, I wasnt clear on the summary 10 discussion on slide 86. They have listed that startup is 11 approximately one month later. Is that your understanding, 12 that startup would take place in June, thats whats 13 scheduled?

14 MS. LIPA: Let me take this 15 one. Based on what the Licensee has been telling us so 16 far, and you saw some of the work-off curves, and they know 17 what their long lead items are, theyre estimating mid to 18 late May for the Mode 4, an approximate month. And I cant 19 really, you know, make a judgment on that at this point.

20 MS. RYDER: So, its Mode 4 21 then?

22 MS. LIPA: This would 23 probably mean, Mode 4 pressure test, which is the Normal 24 Operating Pressure Test, which theyre planning mid to late 25 May. Thats the 7-day test. And startup would be restart, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

146 1 which would mean Mode 4.

2 MR. GROBE: Mode 2.

3 MS. LIPA: Mode 2, which 4 would be their estimate that they would be ready to ask for 5 approval to go to Mode 2 in about a month. Thats what 6 that means to me, but I cant tell you if thats accurate.

7 MS. RYDER: Okay. My other 8 question is regarding this issue of the, two of the four 9 gaskets on the reactor coolant pump; is that correct?

10 MR. GROBE: Um-hmm.

11 MS. RYDER: Two have been 12 replaced, and theyre still up for debate whether the other 13 two will be replaced before we start. Has that been 14 resolved?

15 MR. GROBE: I dont believe 16 there is a debate on the part of the Licensee. Theres 17 been a number of questions raised. Let me just clarify.

18 In each reactor coolant pumps, there is four reactor 19 coolant pumps, each one has two gaskets. Its a pair of 20 gaskets with a leak off in between. And, these are on the 21 main bolting of the reactor coolant pumps, reactor coolant 22 piping.

23 The company chose to refurbish two of those during 24 this outage, and refurbish the other two, is scheduled for 25 the next outage, which is a year from now -- or a year from MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

147 1 when they restart. Excuse me.

2 There has been a number of issues raised about that, 3 and there is an individual at Region III thats reviewing 4 those issues, and I havent received the results of that 5 review yet, but the companys current plan is to not 6 refurbish two of those pumps until the next outage.

7 MS. RYDER: Are you 8 comfortable with that?

9 MR. GROBE: I just told you, 10 were reviewing all the specific issues on that. Its 11 important to remember that these pumps are not 12 safety-related pumps. Theyre the pumps that are used to 13 circulate water for producing power. The safety-related 14 pumps, we would have been much more involved had these pump 15 been safety-related pump.

16 The specific gaskets do provide an opportunity for 17 leakage of reactor coolant. There hasnt been leakage of 18 reactor coolant in this area, and thats why they have the 19 double gasket design. Its only been one of the gaskets 20 thats been degraded.

21 Like I said, there is a number of interesting 22 technical issues that have been raised and were looking 23 into it.

24 MS. RYDER: So, you dont 25 think that the other gaskets are leaking?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

148 1 MR. GROBE: Amy, I dont have 2 any detailed knowledge of it. Im telling you what I know 3 about it. Were looking into it, and as soon as we have 4 the results of that, well certainly let you know.

5 MS. RYDER: Okay.

6 MR. GROBE: Is that it? I 7 thought you had two?

8 MS. RYDER: That was two.

9 Ill keep going.

10 MR. GROBE: Okay.

11 Yes, sir?

12 I did have a timid bunch this afternoon.

13 MR. RIDZON: Paul Ridzon, 14 McDonald Investments. I think it was either you, Jack, or 15 Bill threw out, wants an 80-man week scheduled for 16 inspections. I wonder if that is still accurate and kind 17 of work-off rate on that?

18 MR. GROBE: The total number 19 of man weeks inspection, that was quite awhile ago, I think 20 maybe two months ago, has gone up just a little bit; and, 21 in two areas in particular. We added some additional 22 resources onto the Safety Culture Assessment, and we added 23 some additional resources onto the Corrective Action Team 24 Inspection.

25 Weve been doing a significant amount of inspection MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

149 1 over the last several months. I cant give you the current 2 number of how many inspector weeks I believe are left, but 3 there is still a significant amount of inspection left. I 4 think Christine summarized it on her slides earlier. Lets 5 see if I can do it from memory.

6 There was four major inspections that are still 7 outstanding. The Corrective Action Team Inspection has two 8 or three more weeks of effort. That currently is not 9 scheduled. Its maybe sometime in the middle of May. And 10 thats an 8 person team, so thats 16 to 24 weeks of 11 effort. And the Safety Culture Team has a couple weeks out 12 of it left. And so, those are two of the major inspections 13 that are left.

14 MS. LIPA: Right, we still 15 have the Normal Operating Pressure Test. We still have a 16 one week Fire Protection Inspection, and thats three 17 people for one week. And well still have Restart 18 Assessment Team, that will be right before restart.

19 And the other thing I wanted to point out, when the 20 Licensee went through today their Restart Action, went 21 through the Restart Checklist and it turned things green 22 when they were complete. What that means, once its green 23 and theyve completed their work, thats when we can do our 24 inspection on that area.

25 So, weve been inspecting as they are done and we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

150 1 mentioned at the beginning, that several of these will be 2 closing on in our current inspection report.

3 MR. GROBE: And there is just 4 one more that I remember, that you skipped over, and that 5 was the Programs Inspection. That inspection is well under 6 way, but there is still a little more to do. So, you know, 7 I guess, to give a general comment, were kind of midstream 8 in our effort.

9 MR. RIDZON: I know its out of your 10 hands. I know a lot of this is out of your hands, but can 11 you squeeze those inspections in before June 1st? I know 12 it depends on when things turn green.

13 MR. GROBE: You know, Im not 14 into the schedule projection business. Thats 15 FirstEnergys responsibility. We cant inspect the work 16 until its done. As Christine just pointed out, until 17 those bars go green, the work is not done. So, there is, 18 its not ready for our inspection. As things are 19 completed, we are inspecting them. And, I will continue to 20 do that.

21 So, when the plant is ready for restart is when its 22 going to be ready. The company shared a number of 23 activities that are still in the formative stages today.

24 They mentioned the high pressure injection pump. Whats 25 referred to as the ETAP calculations; thats electrical MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

151 1 power distribution calculations; the diesel generator 2 evaluations.

3 Those evaluations are still being completed. Final 4 actions that are necessary to resolve those havent been 5 crystallized. Theyre working on those. So, there is 6 still a couple of unknowns here.

7 Well continue to progress. Whats today, April 8 15th. Were going to have our inspectors here between now 9 and our next public meeting, and well continue to give you 10 feedback, but my statement, and some of the reporters kind 11 of get bored with this, but it hasnt changed over the last 12 several months. The company is still making good 13 progress. I think that they highlighted today the results 14 of the Integrated Leak Rate Test. That went very well. It 15 was a very complicated test. Requires a tremendous amount 16 of coordination. Went very well. And the results were 17 positive.

18 So, thats one more activity checked off the list, 19 but also an indication of the way in which theyre 20 accomplishing. There is still three significant areas that 21 were watching. There is what I call bulk work. There is 22 still a lot of work to be done.

23 Second is resolution of the engineering design 24 issues. They have made progress on a number of them. They 25 still have several that I just mentioned that are still MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

152 1 outstanding. We need to identify the success path and get 2 it under way.

3 And the third is the Safety Culture area, which 4 theyre well under way in. And Doctor Haber has completed 5 her report. It will be public, I believe the company got 6 it this week, it will be public shortly. And they have now 7 completed their second internal assessment and our 8 inspection team has begun its work.

9 So, they continue to make progress, but there is 10 still work to be done. Those are the three areas that I 11 still see the challenge areas. And, you know, well get to 12 restart when we get there.

13 MR. RIDZON: Thank you.

14 MR. GROBE: Any more questions 15 or comments?

16 MS. LIPA: I would like to 17 mention that we will have another meeting tonight at 7:00 18 in the same facility. Also, that the upcoming monthly 19 meetings will be May 6 and June 3, and I have them 20 scheduled to be here at Camp Perry.

21 We also mentioned earlier in the presentation, were 22 working on scheduling two other public meetings; one to 23 discuss the Design Issues and one to discuss the Safety 24 Culture. So, there is some upcoming events.

25 Anybody else have any questions?

MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

153 1 Okay, well, thank you for coming.

2 MR. GROBE: Thank you.

3 (Off the record.)

4 ---

5 6

7 8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO

154 1 CERTIFICATE 2 I, Marie B. Fresch, Registered Merit Reporter and 3 Notary Public in and for the State of Ohio, duly 4 commissioned and qualified therein, do hereby certify that 5 the foregoing is a true and correct transcript of the 6 proceedings as taken by me and that I was present during 7 all of said proceedings.

8 IN WITNESS WHEREOF, I have hereunto set my hand and 9 affixed my seal of office at Norwalk, Ohio, on this 25th 10 day of April, 2003.

11 12 13 14 Marie B. Fresch, RMR 15 NOTARY PUBLIC, STATE OF OHIO 16 My Commission Expires 10-9-03.

17 18 19 20 21 22 23 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO