ML15351A512
| ML15351A512 | |
| Person / Time | |
|---|---|
| Site: | Monticello  |
| Issue date: | 12/21/2015 |
| From: | Pederson C NRC/RGN-III |
| To: | Northern States Power Co |
| Skokowski R | |
| References | |
| EA-14-193, NRC-2015-0289 | |
| Download: ML15351A512 (17) | |
See also: IR 05000263/2015008
Text
[7590-01-P]
NUCLEAR REGULATORY COMMISSION
[EA-14-193; NRC-2015-0289]
In the Matter of Northern States Power Company, Minnesota
AGENCY: Nuclear Regulatory Commission
ACTION: Confirmatory order; issuance.
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) and Northern States Power
Company, Minnesota, doing business as Xcel Energy, engaged in mediation as part of the
NRCs Alternative Dispute Resolution Program which resulted in a settlement agreement as
reflected in the Confirmatory Order (CO) related to Xcel Energy. The purpose of the CO is to
ensure that the licensee restores compliance with NRC regulations.
DATES: Effective Date: January 20, 2016
ADDRESSES: Please refer to Docket ID NRC-2015-0289 when contacting the NRC about the
availability of information regarding this document. You may obtain publicly-available
information related to this action using any of the following methods:
- Federal Rulemaking Web Site: Go to http://www.regulations.gov and search for
Docket ID NRC-2015-0289. Address questions about NRC dockets to Carol Gallagher;
telephone: 301-415-3463; e-mail: Carol.Gallagher@nrc.gov. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of this document.
- NRCs Agencywide Documents Access and Management System (ADAMS):
You may access publicly available documents online in the ADAMS Public Documents
collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ADAMS
Public Documents and then select Begin Web-based ADAMS Search. For problems with
ADAMS, please contact the NRCs Public Document Room (PDR) reference staff at 1-800-397-
4209, 301-415-4737, or by e-mail to pdr.resource@nrc.gov. The ADAMS accession number for
each document referenced in this document (if that document is available in ADAMS) is
provided the first time that a document is referenced.
- NRCs PDR: You may examine and purchase copies of public documents at the
NRCs PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland
20852.
FOR FURTHER INFORMATION CONTACT: Kenneth Lambert, Region III, U.S. Nuclear
Regulatory Commission, Lisle, Illinois, 60532; telephone: 630-810-4376, e-mail:
Kenneth.Lambert@nrc.gov.
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SUPPLEMENTARY INFORMATION: The text of the Order is attached.
Dated at Lisle, Illinois this 21st day of December, 2015
For the Nuclear Regulatory Commission
/RA/
Cynthia D. Pederson
Regional Administrator
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Attachment - CONFIRMATORY ORDER MODIFYING LICENSE
UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION
In the Matter of )
) Docket Nos. 50-263;72-058
Northern States Power Company, Minnesota ) License No. DPR-22
(Doing business as Xcel Energy) ) EA-14-193
Monticello Nuclear Generating Plant )
CONFIRMATORY ORDER MODIFYING LICENSE
I.
Northern States Power Company, Minnesota, doing business as Xcel Energy,
(Licensee) is the holder of Reactor Operating License No. DPR-22 issued by the U.S. Nuclear
Regulatory Commission (NRC or Commission) pursuant to Title 10 of the Code of Federal
Regulations (10 CFR) Part 50 on September 8, 1970, and renewed on November 8, 2006. The
license authorizes the operation of the Monticello Nuclear Generating Plant (Monticello) in
accordance with conditions specified therein. The facility is located on the Licensee's site in
Monticello, Minnesota.
This Confirmatory Order is the result of an agreement reached during an alternative
dispute resolution (ADR) mediation session conducted on October 15, 2015.
II.
On December 18, 2013, the NRC Office of Investigations (OI), Region III Field Office
initiated an investigation (OI Case No. 3-2014-004) to determine whether two contractor
technicians at the Monticello Nuclear Generating Plant deliberately failed to perform
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nondestructive examinations (NDEs) on the Dry Shielded Canisters (DSCs) in accordance with
procedural requirements, and to determine whether they falsified records when recording the
NDE results. The results of the investigation, completed on November 13, 2014, were sent to
Xcel Energy in a letter dated July 23, 2015 (ML15203B187). Based on the review of the OI
investigation report the NRC determined that both contractor technicians willfully violated 10 CFR 72.158, Control of special processes, and 10 CFR 72.11, Completeness and accuracy of
information. In addition, the NRC determined the licensee violated Title 10 CFR 72.154(c),
Control of purchased material, equipment, and services.
Specifically, on October 17, 2013, an NRC inspector observed, by video display, the
NDE liquid penetrant testing (PT) of the outer top cover plate weld for DSCs being conducted by
a contractor technician. The inspector believed that the technician failed to comply with
procedural requirements in conducting the PT. The inspector reviewed the procedure,
confirmed that the PT was not being performed in accordance with the procedure, and notified
Monticello management. Monticello management and the NDE contractor management
reviewed the video, and concluded the PT was not performed properly. Upon further review,
the NRC inspector determined that two contractor NDE technicians were involved in performing
the PT examinations. These individuals were involved with examining a total of 66 welds on six
DSCs.
Based on the evidence gathered in the OI investigation, the NRC determined that the
two NDE contractors deliberately violated NRC requirements by failing to perform NDE PT of
DSCs, a special process, in accordance with procedures by not allowing the developer to dwell
for the period of time specified in procedure 12751 QP-9.202, Rev. 1, Color Contrast Liquid
Penetrant Examination using the Solvent-Removable Method. Their actions caused the
licensee to be in violation of Certificate of Compliance 1004, Amendment 10, Technical Specification 1.2.5, DSC Dye Penetrant Tests of Closure Welds, which was implemented by
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the procedure, and 10 CFR 72.158, as NDE testing, a special process, was not accomplished in
accordance with the applicable standards and requirements.
The NRC further determined that the two contractors willfully violated NRC requirements
by recording false information concerning developer dwell times on the PT examination report
for each NDE. This caused the licensee to be in violation of 10 CFR 72.11(a), which requires
information required to be maintained by the licensee to be complete and accurate in all
material respects.
The NRC also determined the licensee failed to assess the effectiveness of the controls
of quality by the contractors. Specifically, the licensee did not adequately monitor the work of
the contractors performing PT testing on DSCs No. 11 through 16. This caused the licensee to
be in violation of 10 CFR 72.154(c), Control of purchased material, equipment, and services,
which required, in part, that licensees assess the effectiveness of the control of quality by
contractors and subcontractors at intervals consistent with the importance, complexity, and
quantity of the product or services.
In response to the NRCs offer, Xcel Energy requested use of the NRC ADR process to
resolve differences it had with the NRC. Alternative Dispute Resolution is a process in which a
neutral mediator with no decision-making authority assists the parties in reaching an agreement
on resolving any differences regarding the dispute. On October 15, 2015, Xcel Energy and the
NRC met in an ADR session mediated by a professional mediator, arranged through the Cornell
Universitys Institute on Conflict Resolution.
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III.
During the ADR session, a preliminary settlement agreement was reached. This
Confirmatory Order is issued pursuant to the agreement reached during the ADR process. The
elements of the agreement, as signed by both parties, consisted of the following:
1. The licensee shall restore compliance to 10 CFR Part 72 to DSCs 11 through 16 within 5
years of the date the NRC takes final action upon the September 29, 2015, exemption
request pending for DSC 16 (ML15275A023), or the exemption request is withdrawn,
whichever is earlier.
2. Within 180 calendar days of the NRCs final action on the docketed exemption request
dated September 29, 2015 (ML15275A023), or the date the exemption request is
withdrawn, whichever is earlier, the licensee shall submit a project plan to the Director,
Division of Nuclear Materials Safety (DNMS), Region III, for returning DSCs 11 through
16 to compliance to 10 CFR Part 72.
3. Within 180 calendar days after submittal of the DSCs 11 through 16 project plan, Xcel
Energy shall submit a letter to the Director, DNMS, Region III, regarding progress under
the plan, and any non-editorial changes to the plan. A letter providing a progress update
and any non-editorial plan changes shall be provided every 360 calendar days thereafter
to the Director, DNMS, Region III, until the plan is completed.
4. Within 90 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall evaluate Monticellos dry fuel storage procedures and ensure the procedures
require direct licensee oversight during the entire evolution of each dye penetrant test
performed by contractors on DSC closure welds.
5. Within 120 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall ensure and document that all first line supervisors and above, who oversee
contractors performing field work in the Xcel Energy nuclear fleet, review the
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circumstances and lessons learned from the events that gave rise to the Confirmatory
Order.
6. Within 360 calendar days of the issuance date of the Confirmatory Order, the licensee
shall assess and document the effectiveness of improvements in oversight of
supplemental workers (e.g., contractors) in the Xcel Energy nuclear fleet, including the
actions taken in item 5.
7. Within 540 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall develop and make a presentation based on the facts and lessons learned from the
events that gave rise to the Confirmatory Order, with emphasis on corrective actions
taken as a result. Xcel Energy agrees to make this presentation at an appropriate
industry forum such that industry personnel across the entirety of the United States
would have the opportunity to receive the material. Xcel Energy shall inform the
Director, DNMS, Region III, of where the presentation will be made, and shall make the
presentation materials available to the NRC for review at least 30 calendar days in
advance of the presentation.
8. Within 360 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall submit an article to an industry publication, such as UxC Spent Fuel, describing the
circumstances of the violation, the root and contributing causes, and the corrective
actions. The licensee shall provide a draft to the Director, DNMS, Region III, at least 30
calendar days in advance of the submittal.
9. Upon completion of all terms of the Confirmatory Order, Xcel Energy shall submit to the
NRC a letter discussing its basis for concluding that the Order has been satisfied.
In addition to the elements described above, Xcel Energy took the following corrective actions:
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1. Xcel Energy revised its nuclear fleet Nuclear Oversight (NOS) and Supply Chain
procedures to require the establishment of a NOS Project Oversight Plan for any
Safety-Related or Augmented Quality fabrication or construction activities performed at
the nuclear plant sites under a suppliers Quality Assurance (QA) Program. The NOS
procedure for project oversight was also revised to address site project implementation
in addition to project component fabrication, and associated project risks. Upfront
planning of the level and type NOS oversight is based on those risks.
2. Xcel Energy created a nuclear fleet procedure for oversight of supplemental personnel
(e.g., contractors) based upon the Institute of Nuclear Power Operations (INPO) AP-930
Supplemental Personnel Process Description, which includes a requirement that each
incoming contract worker have a face-to-face review of station standards, expectations,
and requirements with the Maintenance Manager or designee. This includes current and
all future contract personnel including contract quality control (QC) inspectors.
3. Xcel Energy issued a rapid operational experience notice for this event, which prompted
a review of the event by Prairie Island Nuclear Generating Plant staff and shared the
event with the nuclear industry through a process called the INPO Consolidated Event
System (ICES).
4. Xcel Energy reviewed its General Access Training to ensure it addresses the
consequences of willful violations.
In exchange for the commitments and corrective actions taken by the licensee, the NRC
agrees to the following conditions:
1. The NRC will consider the Confirmatory Order as an escalated enforcement action for a
period of one year from its issuance date.
2. The NRC will refrain from issuing a Notice of Violation and a proposed imposition of a
civil penalty.
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This agreement is binding upon the successors and assigns of Xcel Energy.
On December 10, 2015, Xcel Energy consented to issuing this Confirmatory Order with
the commitments, as described in Section V below. Xcel Energy further agreed that this
Confirmatory Order is to be effective 30 calendar days after issuance of the Confirmatory Order
and that it has waived its right to a hearing.
IV.
Since the licensee agreed to take additional actions to address NRC concerns, as set
forth in Section III above, the NRC concluded that its concerns can be resolved through
issuance of this Confirmatory Order.
I find that Xcel Energys commitments as set forth in Section V are acceptable and
necessary and conclude that with these commitments the public health and safety are
reasonably assured. In view of the foregoing, I have determined that public health and safety
require that Xcel Energys commitments be confirmed by this Confirmatory Order. Based on the
above and Xcel Energys consent, this Confirmatory Order is effective 30 calendar days after
issuance of the Confirmatory Order.
V.
Accordingly, pursuant to Sections 104b, 161b, 161i, 161o, 182, and 186 of the Atomic
Energy Act of 1954, as amended, and the Commissions regulations in 10 CFR 2.202, 10 CFR
Part 50 and 10 CFR Part 72, IT IS HEREBY ORDERED THAT THE ACTIONS DESCRIBED
BELOW WILL BE TAKEN AT MONTICELLO NUCLEAR GENERATING PLANT AND OTHER
NUCLEAR PLANTS IN XCEL ENERGYS FLEET WHERE INDICATED AND THAT LICENSE
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NO. DPR-22 IS MODIFIED AS FOLLOWS WITH RESPECT TO THE ACTIONS TO BE TAKEN
AT THE MONTICELLO NUCLEAR GENERATING PLANT:
1. The licensee shall restore compliance to 10 CFR part 72 to DSCs 11 through 16 within
5 years of the date the NRC takes final action upon the September 29, 2015, exemption
request pending for DSC 16 (ML15275A023), or the exemption request is withdrawn,
whichever is earlier.
2. Within 180 calendar days of the NRCs final action on the docketed exemption request
dated September 29, 2015 (ML15275A023), or the date the exemption request is
withdrawn, whichever is earlier, the licensee shall submit a project plan to the Director,
Division of Nuclear Materials Safety, Region III, for returning DSCs 11 through 16 to
compliance to 10 CFR part 72.
3. Within 180 days after submittal of the DSCs 11 through 16 project plan, Xcel Energy
shall submit a letter to the Director, DNMS, Region III, regarding progress under the
plan, and any non-editorial changes to the plan. A letter providing a progress update
and any non-editorial plan changes shall be provided every 360 calendar days thereafter
to the Director, DNMS, Region III, until the plan is completed.
4. Within 90 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall evaluate Monticellos dry fuel storage procedures and ensure the procedures
require direct licensee oversight during the entire evolution of each dye penetrant test
performed by contractors on DSC closure welds.
5. Within 120 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall ensure and document that all first line supervisors and above, who oversee
contractors performing field work in the Xcel Energy nuclear fleet, review the
circumstances and lessons learned from the events that gave rise to the Confirmatory
Order.
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6. Within 360 calendar days of the issuance date of the Confirmatory Order, the licensee
shall assess and document the effectiveness of improvements in oversight of
supplemental workers (e.g., contractors) in the Xcel Energy nuclear fleet, including the
actions taken in item 5.
7. Within 540 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall develop and make a presentation based on the facts and lessons learned from the
events that gave rise to the Confirmatory Order, with emphasis on corrective actions
taken as a result. Xcel Energy agrees to make this presentation at an appropriate
industry forum such that industry personnel across the entirety of the United States
would have the opportunity to receive the material. Xcel Energy shall inform the
Director, DNMS, Region III, of where the presentation will be made, and make the
presentation materials available to the NRC for review at least 30 calendar days in
advance of the presentation.
8. Within 360 calendar days of the issuance date of the Confirmatory Order, Xcel Energy
shall submit an article to an industry publication, such as UxC Spent Fuel, describing the
circumstances of the violation, the root and contributing causes, and the corrective
actions. The licensee shall provide a draft to the Director, DNMS, Region III, at least
30 calendar days in advance of the submittal.
9. Upon completion of all terms of the Confirmatory Order, Xcel Energy shall submit to the
NRC a letter discussing its basis for concluding that the Order has been satisfied.
The Regional Administrator, Region III, may, in writing, relax or rescind any of the above
conditions upon demonstration by the Licensee of good cause.
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VI.
Any person adversely affected by this Confirmatory Order, other than Xcel Nuclear, may
request a hearing within 30 days of the issuance date of this Confirmatory Order. Where good
cause is shown, consideration will be given to extending the time to request a hearing. A
request for extension of time must be directed to the Director, Office of Enforcement, U.S.
Nuclear Regulatory Commission, and include a statement of good cause for the extension.
All documents filed in NRC adjudicatory proceedings, including a request for hearing, a
petition for leave to intervene, any motion or other document filed in the proceeding prior to the
submission of a request for hearing or petition to intervene, and documents filed by interested
governmental entities participating under 10 CFR 2.315(c), must be filed in accordance with the
NRCs E-Filing rule (72 FR 49139; August 28, 2007), as amended by 77 FR 46562;
August 3, 2012 (codified in pertinent part at 10 CFR Part 2, Subpart C). The E-Filing process
requires participants to submit and serve all adjudicatory documents over the internet, or in
some cases to mail copies on electronic storage media. Participants may not submit paper
copies of their filings unless they seek an exemption in accordance with the procedures
described below.
To comply with the procedural requirements of E-Filing, at least ten (10) days prior to the
filing deadline, the participant should contact the Office of the Secretary by e-mail at
hearing.docket@nrc.gov, or by telephone at 301-415-1677, to (1) request a digital (ID)
certificate, which allows the participant (or its counsel or representative) to digitally sign
documents and access the E-Submittal server for any proceeding in which it is participating;
and (2) advise the Secretary that the participant will be submitting a request or petition for
hearing (even in instances in which the participant, or its counsel or representative, already
holds an NRC-issued digital ID certificate). Based upon this information, the Secretary will
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establish an electronic docket for the hearing in this proceeding if the Secretary has not already
established an electronic docket.
Information about applying for a digital ID certificate is available on NRCs public Web
site at http://www.nrc.gov/site-help/e-submittals.html. System requirements for accessing the
E-Submittal server are detailed in NRCs Guidance for Electronic Submission, which is
available on the agencys public Web site at http://www.nrc.gov/site-help/e-submittals.html.
Participants may attempt to use other software not listed on the Web site, but should note that
the NRCs E-Filing system does not support unlisted software, and the NRC Meta System
Help Desk will not be able to offer assistance in using unlisted software.
If a participant is electronically submitting a document to the NRC in accordance with the
E-Filing rule, the participant must file the document using the NRCs online, Web-based
submission form. In order to serve documents through the Electronic Information Exchange
(EIE), users will be required to install a Web browser plug-in from the NRC Web site.
Further information on the Web-based submission form, including the installation of the
Web browser plug-in, is available on the NRCs public Web site at http://www.nrc.gov/site-
help/e-submittals.html.
Once a participant has obtained a digital ID certificate and a docket has been created,
the participant can then submit a request for hearing or petition for leave to intervene through
the EIE. Submissions should be in Portable Document Format (PDF) in accordance with NRC
guidance available on the NRCs public Web site at http://www.nrc.gov/site-help/e-
submittals.html. A filing is considered complete at the time the documents are submitted
through the NRCs E-Filing system. To be timely, an electronic filing must be submitted to the
E-Filing system no later than 11:59 p.m. Eastern Time (ET) on the due date. Upon receipt of a
transmission, the E-Filing system time-stamps the document and sends the submitter an e-mail
notice confirming receipt of the document. The E-Filing system also distributes an e-mail notice
that provides access to the document to the NRCs Office of the General Counsel and any
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others who have advised the Office of the Secretary that they wish to participate in the
proceeding, so that the filer need not serve the documents on those participants separately.
Therefore, any others who wish to participate in the proceeding (or their counsel or
representative) must apply for and receive a digital ID certificate before a hearing request/
petition to intervene is filed so that they can obtain access to the document via the E-Filing
system.
A person filing electronically using the NRCs adjudicatory E-Filing system may seek
assistance by contacting the NRC Meta System Help Desk through the Contact Us link located
on the NRCs Web site at http://www.nrc.gov/site-help/e-submittals.html, by e-mail at
MSHD.Resource@nrc.gov, or by a toll-free call at (866) 672-7640. The NRC Meta System
Help Desk is available between 8:00 a.m. and 8:00 p.m., ET, Monday through Friday, excluding
government holidays.
Participants who believe that they have a good cause for not submitting documents
electronically must file an exemption request, in accordance with 10 CFR 2.302(g), with their
initial paper filing requesting authorization to continue to submit documents in paper format.
Such filings must be submitted by: (1) first class mail addressed to the Office of the Secretary
of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001,
Attention: Rulemaking and Adjudications Staff; or (2) courier, express mail, or expedited
delivery service to the Office of the Secretary, Sixteenth Floor, One White Flint North,
11555 Rockville Pike, Rockville, Maryland, 20852, Attention: Rulemaking and Adjudications
Staff. Participants filing a document in this manner are responsible for serving the document
on all other participants. Filing is considered complete by first-class mail as of the time of
deposit in the mail, or by courier, express mail, or expedited delivery service upon depositing
the document with the provider of the service. A presiding officer, having granted an exemption
request from using E-Filing, may require a participant or party to use E-Filing if the presiding
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officer subsequently determines that the reason for granting the exemption from use of E-Filing
no longer exists.
Documents submitted in adjudicatory proceedings will appear in the NRCs electronic
hearing docket, which is available to the public at http://ehd1.nrc.gov/ehd/, unless excluded
pursuant to an order of the Commission or the presiding officer. Participants are requested not
to include personal privacy information, such as social security numbers, home addresses, or
home phone numbers in their filings, unless an NRC regulation or other law requires submission
of such information. With respect to copyrighted works, participants are requested not to
include copyrighted materials in their submission, except for limited excerpts that serve the
purpose of the adjudicatory filings and would constitute a Fair Use application.
If a person other than the licensee requests a hearing, that person shall set forth with
particularity the manner in which his interest is adversely affected by this Confirmatory Order
and shall address the criteria set forth in 10 CFR 2.309(d) and (f).
If a hearing is requested by a person whose interest is adversely affected, the
Commission will issue a separate Order designating the time and place of any hearings, as
appropriate. If a hearing is held, the issue to be considered at such hearing shall be whether
this Confirmatory Order should be sustained.
In the absence of any request for hearing, or written approval of an extension of time in
which to request a hearing, the provisions specified in Section V above shall be final 30 days after
issuance of the Confirmatory Order without further order or proceedings. If an extension of time
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for requesting a hearing has been approved, the provisions specified in Section V shall be final
when the extension expires if a hearing request has not been received.
Dated at Lisle, Illinois this 21st day of December, 2015
For the Nuclear Regulatory Commission
/RA/
Cynthia D. Pederson
Regional Administrator
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