ML17083A975

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Discusses Investigation Into Circumstances Surrounding Development of Rl Cloud Associates Preliminary Rept,Seismic Reverification Program. Objective of Investigation Is to Determine If Util Attempted to Influence Audit Independence
ML17083A975
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 12/17/1981
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To: Bradford P, Gilinsky V, Palladino N
NRC COMMISSION (OCM)
Shared Package
ML17083A976 List:
References
NUDOCS 8201070324
Download: ML17083A975 (10)


Text

SUBJECT:

INVESTIGATION INTO CIRCUMSTANCES SURROUND N

THE DEVELOPME OF THE "PRELIMINARY REPORT, SEISMIC REVERI GQT ON PROG PREPARED BY R.'L.CLOUD ASSOCIATES, INC.

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I have directed an investigation into this issue.

The reasons for. this action "'.:,'.;.

and the detai]s of the investigation are described below.',

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Congressman Udall s office 'advised us by"t'elephone in late November. that-,"-'." '.:.'"="-;.:.'.,

they had received information that C1oud Associates had circulated an'early'-"';:

,.-.,",=.'raft of'he subject report in October for comment by PG&E.

On.the basis. of:".

this. information, Region V obtained from PG&E on December 1 a draft with a"-'--

transmittal lettei from Cloud dated October 21.

Before a staff review could -

..'e completed, Congressman Panetta's office provided EDO with excer'pts from a marked-up copy of the same draft on December 10, 1981 which indicated that circulation had.taken place within PG&E which may have compromised 'Cloud Associates independence as an auditor.

A factor bearing on this judgment was the statement made at.a C'loud Associates/PG&E/NRR meeting on November 3

which led us to believe that no circulation preliminary to the draft provided NRC in November had taken place.

Based on further inquiries by Region V,.

Cloud provided NRC additional PG&E mark-ups on the October draft.

On December 14, 1981 EDO requested Region Y to initiate an investigation.

It~i Bi Res onsibilities:

NRR will undertake review of the marked-up copies...

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'of the October draft Cloud Associates report against the draft received by NRC in November.

Region Y will-

'conduct interviews -(under oath with transcripts) with involveg Cloud Associates and PG&E personnel.

Region V

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will meet with senior staff from NRR, IE and OEDO in order to.obtain a peer review of the scope and findings

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'f the investigation prior to finalizatiorf.

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'UNITEDSTATES""

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'UCLEARREGULATORYCOMMISSlON WASHINGTON, D. C 20SSS-.

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- MEMORANDUM FOR:

Chairman Pall adino=',""-, "'--'-.-.g";~:.W5>jeg".'.'"." ',, -":.-'=, '"..-'.~-" -."==,=';.. " '

Commissio'ner Gilinsky.= >'e,-'-."<-.."."".:-;.~"'.-'=i."".'.;;;:-:.-..",...,'-..

.Col'ssioner Ahea e..'-"..':-":-.'.-"."..',.".'",.",.:.-"."

,'"'ommissioner Roberts.:.=-",.',-..'..':":..";.;.-",.'.:~;. -..'.-'."

FROM:......-::-...- William J.

-. Dircks:,""'- -;.-='.-',-.':~-".",";:.,'-.;,=-;,;,

.-=DEg~+~9~~~-....B Executive Director for Opeirations 820i070324 Sii217 PDR ADOCK 05000275)

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A final. report is.planned:to be.'completed by=;.",.-::":..."::.-:='=,'.. '-",-".--.'~:";-.'-'..

'o determine whether PGIIE attempted to influen'ce..,--'"-'.:.'"

the independence of the Cloud Associates audit.-':".'..:;.',',

Review all documents'available and interview appro= ".;=

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'-'".""'riate personnel in both Cloud Associates and PGLE.-.-.'.

4ich can b'e determined to have been involved'r have information on the. circumstances.

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'I Milliam J. Dircks Executive Director for Operations e to Service List)

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Nr. Malcolm H. Furbush Yice President.- General Counsel Pacific Gas 5 Electric Company P.O.

Box 7442 San Francisco, California 94120 cc:

Philip A. Crane, Jr.,

Esq.

Pacific Gas 8 Electric Company P.O.

Box 7442 San Francisco, California 94120 Janice E. Kerr, Esq.

'alifornia Public Utilities Commi.ssion 350 McAllister Street San Francisco, California 94102 Nr. Frederick Eissler, President Scenic'horeline Preservation Conference, Inc.

4623 More /1esa Drive Santa

Barbara, Cali fornia 93105 Ns. Elizabeth Apfelberg 1415 Cozadero San Luis Obispo, California 93401 Mr. Gordon A. Silver Ns. Sandra A. Silver 1760 Alisal Street San Luis Obispo, California 93401 Harry M.'Willis, Esq.

Seymour 8 Willis 601 California Street, Suite 2100 San Francisco, California 94108 Mr. Richard Hubbard MHB Technical Associates Suite K

1723 Hamil ton Avenue San Jose, California 95125 Nr. John Marrs, Managing Editor San Luis Obispo County Telegram-Tribune 1321 Johnson Avenue P. 0.

Box 112

'an Luis Obispo, California'3406

..-DIABLO-CANYON

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Nr. Malcolm H. Furbush P

cc:, Resident 1nspector/Diablo Canyon NPS c/o U. S. Nuclear Regulatory Commission 0.

Box 369 Avila Beach, California 93424 lls. Raye Fleming 1920 Mattie Road Shell Beach, California 93440 Joel

Reynolds, Esq.

John R. Phillips, Esq.

Center for Law in the Public interest 10951 West Pico Boulevard Third Floor Los Angeles, Cali fornia 90064 Paul C. Valentine, Esq.

321 Lytton Avenue Palo Alto, California 94302 Mr. byron S; Georgiov Legal Affairs Secretary Governorffice State Capitol Sacramento, California 95814 Herbert H. Brown, Esq.

Hill, Christopher 5 Phillips, P.C.

1900 M Street, N.W.

Washington, O.C.

20036 Hr. Dick.Blankenburg, Editor 8.'o-Publisher South County Publishing Company P; 0. Box 460 Arroyo Grande, California 93420 Mr. James

0. Schuyler Vice President - Nucleat Generation Department Pacific Gas 8 Electric Company P.O. -Box 7442 San Francisco, California 94120 Bruce Norton, Esq.

Suite 202 3216 North 3rd Street Phoenix, Arizona 85012

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~~~J hr. Halcolm H. Furbush 9:

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M. C. Gangloff Westinghouse Electric Corporation P. 0.

Box 3Sb Pittsburgh, Pennsylvania 15230 David F. Fl ei schaker, Esq.

P. 0.

Box 1178 Oklahoma City, Oklahoma 73101

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