ML113640065

Audit of the Licensees Management of Regulatory Commitments

ML113640065
Person / Time
Site:	Perry
Issue date:	03/15/2012
From:	Michael Mahoney Plant Licensing Branch III
To:	Kaminskas V FirstEnergy Nuclear Operating Co
mahoney, m NRR/DORL/LPLIII-2 415-3867
References
TAC ME5301
Download: ML113640065 (12)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 March 15, 2012 Mr. Vito Kaminskas Site Vice President FirstEnergy Nuclear Operating Company Mail Stop A-PY -A290 P.O. Box 97, 10 Center Road Perry, OH 44081-0097

SUBJECT:

PERRY NUCLEAR POWER PLANT, UNIT NO.1 - AUDIT OF THE LICENSEE'S MANAGEMENT OF REGULATORY COMMITMENTS (TAC NO. ME5301)

Dear Mr. Kaminskas:

In the U.S. Nuclear Regulatory Commission (NRC) Regulatory Issue Summary 2000-17, "Managing Regulatory Commitments Made by Power Reactor Licensees to the NRC Staff,"

dated September 21,2000, the NRC informed licensees that the Nuclear Energy Institute (NEI) document NE199-04, "Guidelines for Managing NRC Commitment Changes," contains acceptable guidance for controlling regulatory commitments and encouraged licensees to use the NEI guidance or similar administrative controls to ensure that regulatory commitments are implemented and that changes to the regulatory commitments are evaluated and, when appropriate, reported to the NRC The NRC Office of Nuclear Reactor Regulation has instructed its staff to perform an audit of licensees' commitment management programs once every three years to determine whether the licensees' programs are consistent with the industry guidance in NEI 99-04 and that the regulatory commitments are being effectively implemented.

An audit of the Perry Nuclear Power Plant, Unit 1 (PNPP) commitment management program was performed at the plant site on December 13-14,2011. The NRC staff concludes, based on the audit, that FirstEnergy Nuclear Operating Company (the licensee) has implemented NRC commitments on a timely basis, and (2) the licensee has implemented an effective program for managing NRC commitment changes at PNPP. The details of the results of the audit are described as set forth in the enclosed audit report.

V. Kaminskas

- 2 If you have any questions, please have your staff contact me at (301) 415-3857 or email at michael.mahoney@nrc.gov.

Michael Mahoney, PI' ect Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. STN 50-440

Enclosure:

As stated cc w/encl: Distribution via Listserv

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 AUDIT REPORT BY THE OFFICE OF NUCLEAR REACTOR REGULATION LICENSEE MANAGEMENT OF REGULATORY COMMITMENTS FIRST ENERGY NUCLEAR OPERATING COMPANY PERRY NUCLEAR POWER PLANT, UNIT 1 DOCKET NO. STN 50-440

1.0 INTRODUCTION AND BACKGROUND

In U.S. Nuclear Regulatory Commission (NRC) Regulatory Issue Summary 2000-17, "Managing Regulatory Commitments Made by Power Reactor Licensees to the NRC Staff," dated September 21, 2000 (Agencywide Documents Access and Management System (ADAMS)

Accession No. ML003741774), the NRC informed licensees that the Nuclear Energy Institute (NEI) document NEI 99-04, "Guidelines for Managing NRC Commitment Changes" (ADAMS Accession No. ML003680088) contains acceptable guidance for controlling regulatory commitments, and encouraged licensees to use the NEI guidance or similar administrative controls to ensure that regulatory commitments are implemented, that changes to the regulatory commitments are evaluated, and, when appropriate, reported to the NRC.

The NRC's Office of Nuclear Reactor Regulation (NRR) has instructed its staff to perform an audit of licensees' commitment management programs once every three years to determine whether the licensees' programs are consistent with the industry guidance in NEI 99-04, and that regulatory commitments are being effectively implemented.

NEI 99-04 defines a "regulatory commitment" as an explicit statement to take a specific action agreed to, or volunteered by a licensee, and submitted in writing on the docket to the NRC. The NRR guidelines direct the NRR Project Manager to audit the licensee's commitment management program by assessing the adequacy of the licensee's implementation of a sample of commitments made to the NRC in past licensing actions (amendments, reliefs, exemptions, etc.) and activities (bulletins, generic letters, etc.). The audit is to be performed every three years.

2.0 AUDIT PROCEDURE AND RESULTS The NRC staff performed an audit of the Perry Nuclear Power Plant, Unit 1 (PNPP) commitment management program at the site on December 13 and 14,2011, and reviewed commitments made by FirstEnergy Nuclear Operating Company (FENOC, the licensee) for PNPP over the past three years. The previous audit was performed and documented in an audit report dated May 7,2008 (ADAMS Accession No. ML081230058). For the audit, the NRC staff reviewed a sample of PNPP regulatory commitments, associated tracking and close-out documentation, and the commitment management program procedures.

Enclosure

- 2 The audit consisted of two major parts: (1) verification of the licensee's management and implementation of regulatory commitments, and (2) verification of the licensee's program for managing changes to regulatory commitments.

2.1 Verification of Licensee's Management and Implementation of Commitments The primary focus of this part of the audit is to confirm that the licensee has managed and implemented commitments made to the NRC as part of past licensing actions/activities in accordance with NRC guidance and approved plant procedures. For commitments not yet implemented, the NRC staff determines whether they have been captured in an effective program for future implementation.

2.1.1 Audit Scope Prior to the audit, in order to generate a list of items for the audit, the NRC staff performed ADAMS searches for commitments and reviewed summary reports from the licensee's commitment tracking database. From the results of these searches, the NRC staff selected a representative sample of regulatory commitments to audit. The sample covered a variety of systems, disCiplines, commitment changes, and licensing actions.

The sample excluded the following types of commitments that are internal to licensee processes:

1. Commitments made on the licensee's own initiative among internal organizational components.

2. Commitments that pertain to milestones of licensing actions/activities (e.g.,

respond to an NRC request for additional information by a certain date).

Fulfillment of these commitments was indicated by the fact that the subject licensing action/activity was completed.

3. Commitments made as an internal reminder to take actions to comply with existing regulatory requirements such as regulations, Technical Specifications, and the Updated Final Safety Analysis Report. Fulfillment of these commitments was indicated by the licensee having taken timely action in accordance with the subject requirements.

The speci'fic closed, open, and changed commitments selected for the audit are listed in the tables at the end of this report.

The NRC staff reviewed the following FENOC procedures related to the Commitment Management Program:

1. NOBP-LP-4004, Revision 00, "FENOC Regulatory Commitment Management Program," dated August 12, 2011.

2. NORM-LP-4004, Revision 00, "FENOC Regulatory Commitments,"

dated August 12, 2011.

- 3 NOBP-LP-4004 is the primary procedure for the handling of regulatory commitments. The procedure also allows for processing of internally-identified action items associated with other correspondence or management request.

This procedure establishes a defined methodology for the assignment, tracking, revision, and closing of commitment tasks.

As stated in NOBP-LP-4004, Section 3.7, the licensee defines a "Regulatory Commitment" as:

An explicit statement to take a specific action agreed to, or volunteered by FENOC, and submitted in writing on the docket to the NRC.

NOBP-LP-4004 provides guidance for determining who defines regulatory commitments, who is authorized to make regulatory commitments, and who can sign correspondence to the NRC.

The NRC staff also reviewed the following FENOC forms related to the Commitment Management Program:

1. NOBP-LP-4004-01, Revision 00, "Request to Close Commitment Tracking Item."

2. NOBP-LP-4004-02, Revision 00, "Request to Change Commitment Tracking Item."

3. NOBP-LP-4004-03, Revision 00, "Regulatory Commitment Change Questionnaire."

4. NOBP-LP-4004-04, Revision ~O, "Commitment Verification."

2.1.2 Audit Results The NRC staff reviewed procedure NOBP-LP-4004 and business practice NORM-LP-4004 to determine whether the licensee had an effective program in place to identify, manage, and close commitments made to the NRC as part of licensing actions/activities. In addition, the NRC staff reviewed the selected sample of open and closed commitments to confirm that the licensee had implemented closed commitments appropriately, and that commitments still open had been captured in an effective program for future implementation. In addition to the above-cited procedures, the NRC staff reviewed relevant reports and summary sheets providing the status of each commitment, tracking and change forms, and associated documentation, as appropriate (e.g., plant procedures, examination records, and/or other plant documentation).

The NRC staff compared the guidance in procedures NOBP-LP-4004 and NORM-LP-4004, to the guidance in NEI 99-04. The NRC staff also found that roles and responsibilities, processes, and metrics were clearly identified in the FENOC procedures. As a result of this comparison, the NRC staff found that the FENOC procedures were consistent with the NEI guidance for identifying, managing, and closing commitments.

The licensee's commitments are tracked in a computer database called FileNetB. Based on reports provided by the licensee and on queries of the FileNetB database during the audit, the NRC staff found that FileNetB is able to provide the necessary information (e.g., summary of the

-4 commitment, commitment type, lead department, responsible individual, due date, extensions, closure method and date, and associated historical information) to effectively manage regulatory commitments.

Using FileNet8, the NRC staff was able to verify that the licensee could track when the commitment was made, its implementation status, and where the implementing documents could be found, including applicable procedures or submittals to the NRC. The licensee was also able to readily produce the documents referenced in FileNet8 confirming when the licensee made the commitment, when the NRC acknowledged the commitment, and the status of the commitment including when the commitment was closed, modified, or deleted.

The NRC staff reviewed the documentation associated with the sampled closed regulatory commitments, particularly plant procedures that had been revised as a result of the commitments, and found that the commitments reviewed had been closed in a manner that fully satisfied the commitments made to the NRC. The NRC staff noted that the method of linking specific changes in procedures to specific regulatory commitments had improved over time, resulting in excellent traceability in the most recently-revised procedures. The results of the NRC staff's review of closed regulatory commitments are summarized in Table 1.

The NRC staff found that the licensee's commitment tracking program had captured the sampled open regulatory commitments in sufficient detail to clearly identify the due date, responsible party, and necessary steps/actions required to fully close out the commitment. The results of the NRC staff's review of open regulatory commitments are summarized in Table 1.

In addition, FileNet8 is compliant with NEI 99-04, in that, it serves as an internal process to control commitments as recommended by NEI 99-04. FileNet8 appeared to be an effective tool to manage the commitment actions allowing the licensee to be able to provide detailed printouts of the status of audited items. The attached Audit Summary, Table 1, provides details of the audit and its results.

The NRC has made the following observations while completing the audit, which are minor in nature:

• Observations from the Davis-Besse 2010 audit were taken into consideration and a new procedure was developed for all FENOC sites which is an improvement over the previous way commitments were handled (numbers scheme, maintained commitments, etc.).

• NOP-OP-4302 - commitments are listed by site, where all other procedures have just a list of commitments, with no site designation.

• NOP-OP-04304 & NOP-OP-4330, NOP-OP-4204 - section titled "Obligations" lists commitments. In addition, other NRC documents are listed under "Obligations", which do not seem to be regulatory commitment or obligations.

NOP-Op*4302 - section called "Obligations/Commitments". however there is no designation to which are considered obligations or commitments.

All of the above were discussed with your staff during the audit.

- 5 The NRC staff found that the licensee's commitment tracking program had adequately captured all of the audited regulatory commitments.

2.2 Verification of the Licensee's Program for Managing Commitment Changes The primary focus of this part of the audit is to verify that the licensee has established administrative controls for modifying or deleting commitments made to the NRC. Accordingly, the NRC staff compared procedure NG-RA-00802 to NEI 99-04 to determine whether the procedure is consistent with the guidance in NEI 99-04 for evaluating and reporting changes to regulatory commitments. Also, the NRC staff reviewed the documentation associated with a sample of commitment changes.

2.2.1 Audit Results The NRC staff found that NOBP-LP-4004 follows closely the guidance of NEI 99-04. The NRC staff concludes that the procedure used by the licensee to manage commitment changes is appropriate.

The NRC staff observed that the licensee had generally complete and accurate records, and had documented the sampled commitment changes, appropriately.

The NRC staff also reviewed a sample of changed regulatory commitments which did not require NRC notification. The results are summarized in Table 1.

3.0 CONCLUSION

The NRC staff concludes, based on this audit, that: (1) the licensee has an effective program for managing and implementing regulatory commitments, and (2) the licensee has an effective program for managing changes to regulatory commitment Based on the results of the audit, the NRC staff concludes that the licensee has implemented an effective program to manage current and future regulatory commitments and regulatory commitment changes in accordance with NEI 99-04.

4.0 LICENSEE PERSONNEL CONTACTED FOR THIS AUDIT Kathy Nevins Phil Lashley Mike Tullia Joe Lynch Principal Contributor: M. Mahoney Date of issuance: March 15, 2012

TABLE 1 Audit Summary: Written Commitments and Related Information FirstEnergy Nuclear Operating Company (FENOC)

Perry Nuclear Power Plant (PNPP), Unit 1 Docket No. STN 50-440 Commitment No.

Description Disposition Auditor's Assessment PY-L02546 Appropriate Detailed Operational Procedures will be established to implement the control included in Section 4 "Safety and Technical Evaluations" and Section 5 "Plant Implementation" of NEDO-33091-A Rev. 2, "Improved 8PWS Control Rod Insertion Process" Commitment Maintained Verified the commitment was implemented however this commitment is not listed in the section for commitments incorporated for the following documents:

a. SVI-C11-T1984

b. SVI-C11-T1019

c.

101-4

d. FTI-80001 Reviewing the procedures it could be determined the commitment was incorporated into the procedures, but were not listed.

PY-L02547 Develop a fleet procedure for determining dosimeter selection and placement.

Guidance will be consistent with NRC inspection procedure 71121.01 Commitment Maintained Verified that the commitment was implemented and is maintained properly.

No issues - adequate.

PY-L-02549 Any piping segments that are determined to need in-field verification, but have not received it prior to the nine month GL2008-01 response, will be in-field verified no later than restart from the next refueling outage Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

Commitment No.

Description Disposition Auditor's Assessment PY-L02552 The remaining generic letter 2008-01 in-field verifications that are being performed prior to or during 1 R12 will be evaluated, and a summary of the evaluation results will be submitted to the NRC within 90 days after startup from 1 R 12.

Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-L02554 Remove plant specific TS requirements concurrent with implementation of 10 CFR 26, Subpart I Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-L02555 Revise TS Bases based on TSTF-475 (control rod notch surveillance test frequency).

Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-02671 Incorporate a revised value of 7.5 percent into Technical Specification (TS) Bases 3.1.4, only after NRC issuance of the amendment to incorporate TSTF-460 requested within FENOC Letter L-1 0-201.

Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-L02559 Fleet implementation of Delta Protection Murura BLU Suits - procedures and training Commitment Maintained Verified that the commitment was implemented and maintained properly. Revised procedures and training records related to the fleet implementation of the BLU Suits.

No issues - adequate.

Commitment No.

Description Disposition Auditor's Assessment PY-L02562 Fleet implementation of Delta Protection Murura BLU Suits - charged battery packs Commitment Maintained Verified that the commitment was implemented and maintained properly. Interviewed FENOC radiation protection personnel who demonstrated the battery packs. FENOC personnel demonstrated that the battery packs have an overcharge protection, to ensure full charge at all time. Verified procedures are in place to ensure batteries are charged at all time.

No issues - adequate.

PY-L-02668 ISubmit supplement to PNPP cyber security plan to clarify scope of systems ICommitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-L02670 Submittal of retrospective premium guarantee.

Commitment Closed Verified that the commitment was implemented and closed properly.

No issues - adequate.

PY-L-11-331 01 through 06 ICommitments related to letter 11-331 -

Emergency Amendment Commitments Closed This commitment was the first to be created and closed with the new FENOC commitment procedures. FENOC numbered the commitments in accordance with the new procedure. FENOC used the new forms appropriately to close the commitment. Verified the commitments were implemented by reviewing the affect procedures/documents (standing order, log entries, etc.)

No Issues - adequate.

TABLE 2 Audit Summary: Modified and/or Deleted Commitments which did not require NRC notification FirstEnergy Nuclear Operating Company (FENOC)

Perry Nuclear Power Plant, Unit 1 Docket No. STN 50-440 Commitment No.

Com PY-L02556 ISFSI (Dry C Security) Ord Response Le mitment Disposition Commitment Maintained Auditor's Assessment Licensee changed date for commitment completion, and appropriately filled out change form. The date was within the commitment date, so NRC notification was not required, this was appropriate.

sk Storage r EA-09-073

er Commitment.

V. Kaminskas

- 2 If you have any questions, please have your staff contact me at (301) 415-3857 or email at michael. mahoney@nrc.gov.

Sincerely, IRAI Michael Mahoney, Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. STN 50-440

Enclosure:

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PUBLIC LPL3-2 R/F RidsRgn3MailCenter Resource RidsAcrsAcnw_MailCTR Resource RidsNrrLpl3-2 Resource RidsNrrPMPerry Resource RidsNrrLASRohrer Resource RidsOgcRp Resource SMeighan, NRR JGeissner, Rill RLerch, Rill MMarshfield, SRI Perry ADAMS ACCESSION No.: M113640065L NRR-106 OFFICE INRR/LPL3-2/PM N RR/LPL3-2/LA NRR/LPL3-2/BC NRR/LPL3-2/PM NAME MMahoney KGoldstein JZimmerman INDiFrancesco for I MMahoney DATE 3/14/12 3/12/12 3/15/12 3/15/12 OFFICIAL RECORD COpy