ML18043A286

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IE Inspec Rept 50-255/78-05 on 780111-13,780118-20,780124- 27,780131-780203 & 780216-17 During Which 5 Items of Noncompliance Were Noted:Physical Security Organization, Access Requirements,Access Controls & Testing & Maint
ML18043A286
Person / Time
Site: Palisades 
Issue date: 11/20/1978
From: Carlson D, Madeda T, Norelius C
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:
Shared Package
ML18043A285 List:
References
50-255-78-05, 50-255-78-5, NUDOCS 7811300117
Download: ML18043A286 (18)


See also: IR 05000255/1978005

Text

U.S. NUCLEAR REGULATORY COMMISSION

OFFICE OF INSPECTION AND ENFORCEMENT

REGION .III

Report No. 50-255/78-05

Docket No. 50-255

License No. DPR-20

Safeguards Group IV

Licensee: Consumers Power Company

212 West Michigan Avenue

Jackson, MI

49201

Facility Name:

Palisades Nuclear Generating Plant

Investigation at: Palisades Site, Covert, MI

,.

Investigation conducted:

January 11-13, 18-20, 24-27, 31-February 3,

and 16-17, 1978

Inspectors: 9 .. t0n4.~

D.J1. Carlson r

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T.

  • Madeda ...

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G. M. Christoffer

.

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Approved by:

C. E. Norelius

Assistant to the Director

Investigation Summary

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Pf'&L !~ 197 r

Investigation on January 11-13, 18-20, 24-27, 31-February 3, and 16-17,

1978 (Report No. 50-255/78-05)

Investigation Summary:

Special, announced investigation into allegations

made by an alleger~ members of the security force and an anonymous

caller. Specifically, the investigation covered areas relative to the

security organization, access controls, testing and maintenance, radia-

tion monitoring requirements and licensee action on previous inspection

findings.

The inspection involved 230 inspector-hours onsite by three

NRC inspectors.

Results:

Of the five areas inspected, five apparent items of noncompliance

were identified in four areas:

(Physical Security Organization - Paragraph

1; Access Requirements - Paragraph 2; Access Controls - Paragraphs 3 and 4;

Testing and Maintenance - Paragraph 5).

The five items are considered to

be infractions *

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NOTE:

Addendums A and B of this investigation report specifically

discuss security details associated with items of noncompliance noted

during this investigation and licensee action on previous security

inspection findings, and are, therefore, exempt from disclosure accord-

ing to Section 2.790 of the NRC's "Rules of Practice," Part 2, Title 10,

Code of Federal Regulations.

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INTRODUCTION

The Palisades Nuclear Power Plant, which is owned by Consumers

Power Company (CPC), is authorized to operate under NRC License No.

DPR-20.

As such, CPC must provide physical protection of the plant

against industrial sabotage.

Security requirements which must be com-

plied with by CPC are currently contained in their NRG-approved security

plan which was submitted in accordance with 10 CFR 50.34(c); applicable

parts of 10 CFR 73.55 which were effective May 25, 1977; and applicable

parts of 10 CFR 73.70.

In fu~filling the security plan con:unitments, the

licensee has contracted with Burns International Security Services,

Incorporated (BISS!) to provide guards and supervisors for security

operations at the Palisades site.

REASON FOR INVESTIGATION

On January 9, 1978, the Office of Inspection and Enforcement, RIII,

received a letter from an alleger at the Palisades site concerning

the number of security force members who have either quit or were

fired and who were knowledgeable enough to surreptitiously penetrate

security defenses at the facility.

He believed the underlying cause

of the high turnover rate was attributed to low wages and few benefits

received by the_.Etuards.

In addition, the letter stated that the guard

force was preparing to strike because of low wages and few benefits.

A typed transcript of this letter is attached as Exhibit 1.

An investi-

gation was initiated to determine whether or not there were any direct

or indirect improprieties which significantly affected the security of

the site.

SUMMARY OF FACTS

On January 11, 1978, the alleger who alleged the high turnover rate

of security force personnel and the possibility of a security force

strike, was interviewed.

On January 12, 1978, an investigation was initiated at the Palisades

site. Initial interviews with guards and CPC management representa-

tives and a review of records appeared to substantiate the alleger's

concerns.

However, no noncompliance with NRC requirements were identi-

fied relative to these concerns.

Additional allegations concerning security and other improprieties

at the Palisades site were voiced by security officers to NRC represen-

tatives at the onset of the investigation.

These allegations concern

areas relating to personnel and vehicle access controls, weapons qualifi-

cation and requalification, intrusion detection devices and procedures,

training and radiation controls.

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On February l,, 1978, a message pertaining to security at the Palisades

site was found on the telephone recorder of the ~esident Inspector for

the I>onald C. Cook Nuclear Power Plant located several miles aouth of

the Palisades site.

The recorder, vhich was utilized solely to answer

the telephone during the period cf rebruary 10, 1978 (1630 hours0.0189 days <br />0.453 hours <br />0.0027 weeks <br />6.20215e-4 months <br />) to

Tebruary 1,, 1978 (0815 hours0.00943 days <br />0.226 hours <br />0.00135 weeks <br />3.101075e-4 months <br />), had taped an anonymous caller's con-

versation alleging that a security officer fell asleep on duty and

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had his veapon stolen from him.

!ecause of the nature.of the allegCtions, corrective action on items cf

noncompliance identified during the previous physical protection inspec-

tion conducted on August 9-12, 1977, were reviewed by the NRC represen-

tatives. "l'hese items along with the results of the revie~, are identified

in Addendum! of this.investigation report. It should be noted that

Addendum! identifies.security measures for the physical protection of

the licensed facility, and as such, is considered 10 CFR Part 2.790(d)

information which*shall be subject to disclosure only in accordance vith

the provisions of 10 CFR Part 9.12.

As a result of this :investigation, certain of the licensee's activities

appeared to be conducted :in noncompliance vith NRC requirements.

~one

of the items of no?rcDmpliance represent a direct threat to the health

and safety of the public or common defense and aecurity; however,

certain items were recurring in nature from the above mentioned previous

physical protection inspection. All items were categorized as infractions

which indicate a possible potential for causing a threat. The items,

which pertain to intrusion alann responses, access control requirements,

and testing and maintenance procedures lor detection aids, are identified

in Addendum A of this investigatio1l rep*ort. It should be noted that

Addendum A identifies security measures for the protection of the licensed

facility, and as such, is considered 10 CFR Part 2.790(d) information

,.,hich shall be subject to disclosure only in accordance with the provisions

cf 10 CFR Part 9.12.

Because of the investigation findings as of February 3, 1976, certain

matters of NRC-concern ~ere discussed during a telephone conversation

on February 9, 1978, between members of the CPC's staff and members

of the Office of Inspection and Enforcement, Region III. Based on that

conversation, the licensee agreed to immediately institute positive

access controls to certain of the vital areas; conduct weapons requali-

fication for certain guards; initiate actions to.reduce the number of

vital area alarms and reduce the response time taken by guards who respond

to alarms; and compfete appropriate retraining to assure that all guards

can satisfactorily demonstrate an understanding of and ability tc per-

form all required procedures.

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On March 7, 1978, a aenior ~anagement aeeting was conducted between the

Director cf the NRC's Office of Inspection and Enforcement, Region Ill,

and the Executive Vice President for Consumers Power Company *. Also

present were certain ~embers of their re5pective staffs. During the

seeting, licensee representatives were informed of:

The *cope cf the

investigation; the NRC's finding for each allegation; and the apparent

noncompliance noted as a result of the investigation or Teview of pre-

viously identified noncompliance.

ln addition, the representatives

were infonned of the NRC's concern.over the ineffectiveness of the

Company's management .control syst~ms.

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J>tTA!LS

I.

Persons Contacted

R. Youngdahl, Executive Vice President!/

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C. Bilby, Vice President, Production and Tta2,mission-

R. Lincoln, Vice President, General Servf7~,-

R.

De~itt, Manager, Producti~n1

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~uclear- ~

J. Levis, Plant.Superintendent--

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R. Mccaleb, Quality Assurance Superf,tendent-

J. McVay, Administrative SupelY2,or-

~.Hodge, Security Supervisor--11

C. Petitjean, T~chnical E.ngineer-

P. Botts, Quality Assurance Engineer

R. Compstock, Vice President - Central Region, Burns International

Security S~rvice, Inc. (B!SS!)

M. Sharp, Captain, Post Commander, !!SSI

V. Middaugh, Lieutenant, Shift Supervisor, !!SS!

s. Leffler, Lieutenant, Shift Supervisor, !ISSI

C. Taylor, Lieutenant, Shift Supervisor, !!SSI

A. Lee, Lieut~tl:Clnt, Shift Supervisor, BISS!

L. Schohy, ~epresentative, Union Plant Guard ~orkers cf America

The inspectors also intervie-.Jed numerous elSSI security officers

assigned to the Palisades Nuclear Power Plant.

Note 1: Identifies those present ,at *the Palisades site during the

exit interview conducted en Tebruary 3, 1978.

Note 2: Identifies those present at Region III during the

management meeting *Conducted on March 7, 1978.

2.

Allesations

. Tollo*'"ing are the allegations made by the initial allege'(. and

a discussion cf the results of the investigation which was con-

ducted:

a.

Allegation: There is an extremely high turnover rate of

security f otce personnel. Every couple of weeks a ne~ -

training class begins to nplace personnel who have either

quit or have been fired. It is "unnerving" that every fel.*

days a "bitter person" who knows all about the security at

the site either quits or is fired.

This is a perfect weapon

for someone who would like to penetrate site security *

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Tinding: Through a reviev cf records located onsite and

interviews with the Palisades Security Operations Supervisor

and !ISSI'* Post CC>trlltlander, 1t appears that ~here has been

a high turnover rate of *ecurity force per*onnel. A review of

records for the period of August 3, 1976 through January 8 1

1978 revealed that thirty individuals were either terminated

or had tendered their resignation. Specifically, of those

thirty individuals, twenty-two aecurity officers were tenr.inated

and the remaining eight~~endered their resignation cf their o~"Tl

accord.

As of 3anuary 12, 1978,. there were several security officers

employed at the Palisades site. Of those individuals, many

were hired-subsequent to March ~8, 1977.

,.

In addition to the above, it ahould be noted that nine

ecurity officers tendered their resignation *ubsequent to

the initiation of this investigation and that one *ecurity

officer was terminated.

The resignations and the one termi-

nation a;&~urred during the period of January 13, 1978 through

February 3, 1978 *

~ith regard to training, cm-s1te re6ords indicated that training

classes were initiated in March, June, luly, August, October

and November, 1977, for seven1 * one, five, three, six and eight

security officers, respectiv~ly;

Although there is no noncompliance associated with this finding,

the seriousness o! this matter was discussed with licensee

management personnel. \\lhile no conclusion vas Wiade as to

whether or not previously employed* individuals were *'bitter,**

it vas concluded that certain security officers interviewed

during the investigation were discontented with certain

working conditions. This however could not be concluded as

being a **perfect weapon" which could be used in penetrating the

security defenses of the site.

b.

Allegation:* The underlying cause of the high turnover ~ate

of security force personnel is attributed to lo~ wages* and

few benefits.

findings: The investigation detetiDined that this may be the

underlying cause, however, no comparative wage and ~enefit

atudy was conducted with similar job functions within the

immediate area.

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c.

At the time that the alleger voiced his concern, the

contract guard service hourly pay scale for an officer

was determined by a contract between the licensee and the

guard service agency.

He also alleged that janitors make

more per hour than security officers.

Inverviews with

plant management determined that janitors earn more per

hour than the starting wage of a security officer *

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With regard to benefits, the final written agreement between

the Union and BISSI was not available to the NRC at the time

this report was written. Therefore, no comparison between

previous and new benefits was made for the purposes of this

report *. It was determined through interviews, however, that

most security officers were dissatisfied with the benefits

offered.

t'

Allegation:

The security force at the plant is preparing

to strike.

Finding; Initial interviews with certain security officers

on J~wary 12 and 13, 1978 revealed that, except for BISSi

supervisory personnel, most individuals were prepared to

strike on January 16, 1978.

This was the date that the

security officers were to vote for or against the ratifica-

tion of the proposed union agreement.

It was found, however, th~t the two parties (BISS! and the

Union) to the old agreement, which according to the BISSI

Vice President for the Central Region (Chicago) had been

extended to* *cover the period in question, had a no strike

clause. This clause stated that during the term of the Agree-

ment or any renewal or extension thereof, neither the Union,

-it's officers, officials, representatives, agents, members or

any employee will authorize, instigate, aid, condone, promote,

participate in or engage in any strike, work stoppage, slowdown

boycott, picket line, unfair listing, sit-down, sit-in,

refuese to cross any picket line, or other interruption,

refusal, cessation, limitation or interference with the

Employer~s work or the business of ~he Employer, or any

impeding of business of the employer, regardless of

whether there is a claim by the Union of Breach of this

Agreement, or of Federal, State or Local law by the Employer.

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3.

Allegations - Security and Other Improprieties - Security Force

Following are allegations of inadequate security and other

improprieties at the Palisades site which were voiced by

security officers to NRC representatives during the investigation.

a.

Allegation:

Weapons qualification and/or requalification

tests were not being properly administered.

Findings:

During the course of the investigation, a review

of licensee weapons qualification records and interviews

with site security officers revealed that one security

officer (Individual A) was given a passing score on a

weapons-qualification test after another security officer

(Individual C) had fired additional rounds into Individual

A's target.

Individual A, who had the adjusted target

score, made a written statement to this effect to the NRC

representatives.

This. statement was corroborated by the

written statement of another security officer (Individual

B) who witnessed the incident. It should be noted that

Indi'lidual C who fired the rounds into Individual A's

target was interviewed.

This interview confirmed that

Individual C had in fact fired into Individual A's target

so that Individual A would appear to have qualified *

Individual C, however, refused to give a written statement

to this effect.

Based on statements obtained, and documents reviewed, it

was determined that Individual A's weapons' qualification

score had been fals"ified by Individual C.

It was further found that the individual was in a manage-

ment position at the time of the incident.

This individual,

subsequent to the incident date, voluntarily requested to

be reduced to a lower rank. It was also noted that this

individual resigned from work at the site during this

investigation.

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1Jith respect to this *1teni, the act of misrepresent1tion oc:cuTTed

before the *ec:urity requirements of 10 CFR Part 73.55 became

effective. Thh regu1ation vas recently developed to upgrade

f1cility *ecurity to protect against a designed threat.

At the

time of this incident, the licensee vas following the provisions

cf their *ecurity plan which vas *ubmitted in accordance vith

10 CFR Part 50.)4(c). -This plan, which was *ubmitted to the

NRC, generally identifted certain c0tmtitments and/or provisions

~tilized 1n the protection of vital equipment within vital

areas.

Vith regard to audits, it was detencined that the licensee had,

on certain occasions, audited the provisions of the plan for

compliance, including *ec:urity officer weapons' training. lt

is recognized, however, that in this case, the act of collusion

involved several individuals and is obviouslv difficult to dis-

cover. -~e dUcovery of the act vas further* compounded by the .**

fect_tha~ th~ one individual was in a posit;i.on of _authoTliy __

and upon whom the licensee _depended upon for factual documenta- :-

tion, provided the licensee with false information.

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To provide assurance that th~s type of incident will not be

Tepeated, the NRC will specifically revieo.* measures and methods

to prevent recurrence ~uring the revie~ cf the licensee's

recently submitted security plan which was filed in accordance

with 10 CFR Part 73.55.

In addition to the above, the ~"RC representatives determined

through intervie*~ and a review of records that Individual A

had qualifie~*on June 2, 1976 which was prior to the incident,

and that, Individual A had requalified on September 19, 1977,

which was subsequent to the incident.

lt should be further noted that additional allegations

inade by security officers during the investigation conceT'tling

improper weapon qualifications and/or requalifications of

other security officers were investigated.

However, no

additional.weapon qualification and/or requelification

improprieties could be substantiated *. ** This vas determined

through a review cf records and intervi~s vith secu~;ty

officers ~ho were directly implicated by the individuals

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who aade the ellegation as vell as other individuals

In certain instances, signed statements were obtained fror:i

those who alleged the improprieties and those vbo were impli-

cated.

In eddition, interviews with the licensee's Security Operations

Supervisor and !ISSI supervisory personnel revealed no indi-

cation that they were aw~re of any individual in the position of

an anned se.curity office~ who was not *firearms qualified.

b.

Allegation: Access controls, particularly search requirements,

were not always being adhered to.

c.

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Finding: t>Uring the course of the investigation it vas

revealed through personal observations by NRC representatives

that &ec;.urity officers failed to properly administer positive

access coritrol requirements (searches) to licensee employees

t a portal entrance to the prot~ct~d crea. It =hould be

further note8 that NRC representatives also confirmed the fact

that picture badges are not adequately supervised in accordance

with 10 ~tR Part 73.55 requirements in that, certain information

was omit~eo from several contractor security badges.

Conse-

quently, the licensee was cited with two items of noncompliance

as identified in Addendum A to this-investigation report.

It could not be substantiated that visitors and/or contractor

construction workers were affoided access to the protected

area without first adhering to proper access control require-

ments.

This was detenDined by personal obse'n-'ations by h"RC

representative~.during*the course of the iDvestigation. In

addition, it could not be substantiated that licensee employees

could gain access to the protected area by passing through

an unmanned gate.

It was detennined, however, that-the licensee's security

force was operati:lg below its normal complement of security

personnel, but still within security manpower requirements

for responding to a given designed security threat.

Though

there is no ~oncompliance associated with this finding, the

matter was discussed with the licensee."

Allegation:; Security officer responses to vital area alanns

are inadequate and incorrect response tillles are logged *

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Tindin&: Jt vas found, through a r~iew of recent records

for a forty four-day period, that *ecurity officers failed

to respond to two hundred and eight vital area alarms vithin

~he required time frame.

Consequently, the licensee was

cited vith an item o! ccmco=pliance as identified 1Z1 Addendum

A to this investigation report.

As supported by the above, there was no indication that

incorrect response times were logged.

Further, interviews

with many security off~cers, the plant Security Operations

Supervisor and BISS! supervisory personnel determined

that, to the best of their knowledge, all alarm Tesponses

are accurately recorded and that no individual was ever

provided with instruct~ons to tog anything_ bu~ ac~1=Uil

times.

1n addition, it could not be substaritiated through intervit!\\o"s

that c'ertai.Il alarms were never responded to or logged as such,

er, in one instance, that a vital area alarm was out of aervice.

for sixteen hours and the door vas checked only ~lrlee during

that time. lt vas determined, however, that the Plant ~ecurity

Operations Officer issued verbal instructions for *ecurity

offic~.to check various vital area doors while within the

plant for other reasons. Also, current procedures require that

a vital area door be either aecured or under constant *utveillence

should the monitoring aystem fail~

d.

Allegation: Vehicle control is inadequate.

Finding: A physical protection inspection conducted by NRC

representatives on Augbst 9-12, 1977 (IE Inspection ~eport

S0-255/77*07.) revealed that site designated vehicles were

not adequately controlled to assure use only by authorized

persons and for authorized purposes. As a result cf this

finding, the licensee was cited vi.th an item of noncompliance.

The licensee replied to NP.C's item cf noncompliance in a letter

dated September 21, 1977. ln this letter, the licensee stated

that appropriate security 1mplementing procedures were revised

and implemented to comply with the NRC position !or vehicle

control in the protected area.

During this itivestigat'ion, it was revealed through observations

by NRC representatives that the licens*ee is currently conforming

to 5ecur1ty requirements for control of vehicles in the protected

.a.ru.

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e.

Allegation: The training program is not being adhered to.

Finding:

In one* instance, ~ indfvidual made an

ellegation to the NRC representatives that an eighty-hour

training course vas not bein~ adhered to. This allegation,

as stated, vas found to be true.

~1th regard to this,

bovever, it vas determined that no CDmmitment for *uch a

course was ever made to the NRC and hence' could not be con-

sidered as noncompliance with an NRC requirement.

A revie~

of licensee commitments~o the NRC for security officer

training was conducted. After the reVi~, it was determined

that the licensee was adhering to the requirements of their

program. It ahould be noted, however, that training require-

ments are currently being upgraded to ~eet the requirements

cf 11') en J>"art 73.55. These new training t'equirements must

be effected no later than August, 1978, as required by the

rule.

t:*

In addition to the above, interviews with aecurity officers

revealed that they were dissatisfied with the initial on-the-

job training they received. Interviews determined that *

one-to-~ and a half days of this type of training vas

usually-given to ne~ly-assigned officers. lt was also deter-

ained that most procedural training vas conducted in a

classroom environment and therefore, in some cases, did not

adequately demonstrate the requirtments. lt was further

determined that open book examinations were administered

at the conclusion of the proc-edural training. ln some cases,

officers stated that they would not have attained a passing

score vere they not allo~ed to use the procedural manual

(open book test). lJh1le the NRC neither disapproves nor con-

dones such examination technique, it does encourage that

certain of the procedural examinations be administered

without the use of the reference 111aterial.

This is based on

the fact that certain procedural information must be committed

to the officer's memory in order to i.?mDediately, and without

reservation, react to certain emergency situations.

In vie~ of the foregoing NRC concerns, the licensee initiated

a retraining program to assure that all guards could satis-

factorily demonstrate an understanding of and ability to

perf cnn required procedures.

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f.

Allegation: Access controls to containment are inadequate.

Finding: Vi th regard to providing positive access controls

to containment, it vas revealed through interviews with

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staff and operations members of the site security force and

observations by NRC representatives, that the licensee did

not provide adequate controls to containment during periods

of frequent access (refueling).

Consequently, the licensee

was cited with an item of noncompliance as identified in

Addendum A to this investigation report.

Allegation:

The radiation monitor at a security egress

station is usually inoperative and radiation training for

security force persoi:t.hel is insufficient.

Findings:

A review of portal and portable personnel radia-

tion monitor requirements revealed that all required primary

exit areas were provided with operable monitors.

Secondary

or backup control points, which are not required by the

NRC, are provided at the several locations throughout the

plant. It was confirmed through interviews with certain

guaras and plant management personnel that a_post monitor

was, on certain occasions, inoperable.

In addition, it

was found that personnel exiting the facility could leave

the site Without passing through the secondary backup radia-

tion monitor at a secondary entrance.

With regard to this

matte!'r the licensee stated, that a review of this item

would be initiated and appropriate action taken even though

there was no noncompliance with NRC requirements noted.

With respect to radiation training, a review of the radio-

logical training program fci_r security personnel revealed

that prior to issuance of a film badge, guards receive basic

radiological training.deemed necessary to perform their

duties at the facility.

As in the case of most other site

personnel, security guards do not routinely enter high radia-

tion areas unless escorted by a radiation protection technician

or another person trained in radiation protection.

Further,

personnel protection against inadvertent entry into high

radiation areas is provided through a locking system which is

under specific control. It was noted, however, that specific

training and retraining requirements for the security force

were being reviewed by management at the time of this investi-

gation.

~o noncompliance was noted regarding this item.

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h.

Allegation:

Perimeter fence alarms are not reset *

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Finding:* During the investigation it was determined

through interviews, record checks, and personal

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observations by NRC Tepresentatives that the perimeter

fence alarms are being reset in accordance with. requirements.

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It was Doted by the NRC representatives that the licensee

instituted compensatory procedures to cope with adverse

weather conditions, on certain occasions.

~tails of adverse

weather conditions have been recorded and were available for

Teview by the NRC.

Accordingly, the NRC representatives

reviewed representative records and interviewed security force

1t1enibers relating to the-~implementation of the contingency

111easures employed during and after adverse weather conditions.

No discrepancies were noted by the );RC representatives.

4.

Allegation - A ~ecurity officer fell asleep on duty and had his

weapon stolen from him - anonymous caller.

Finding:

On. J'ebruary 14, 1978, the NRC Resident Inspector for

t.he Donald C. Cook Nuclear Power Plant notified Region III that

his unattended automatic off ice telephone recorder had taped an

anonymous caller's conversation alleging that a security officer's

weapon was stolen while he was asleep on duty at the Palisades

site. With r~~ard to the incident, Region III established through

a telephone conversation with the plant Security Operations

Supervisor on February 14, 1978, that a .38 caliber revolver

vas, in f aet, lost by a guard on February_ 5, 1978. tn view of

this, NRC representatives were dispatched to the site to further

investigate this matter.

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During the investigation, it was tevealed through interviews

and review of licensee incident reports, that on the night of

February 5, 1978, &_.weapon (Colt 53183M), was reported missing.

A check of records 'confirmed that the weapon had been issued

and reported as lost by a security officer. The Security

Operations Supervisor stated that, upon loss of the weapon, a

complete inventory was taken of all veapons.

Also a thorough

search was conducted of all security posts and of all areas

and routes that the officer bad covered. All weapons were accounted

for except the lost revolver.

Since the search did not locate

the weapon and interviews with the officer who was issued the

weapon and other* security force ~embers proyed negative as to

its whereabouts, it was reported lost to the local police

department.

On February 16, 1978, at approximately 0130 hours0.0015 days <br />0.0361 hours <br />2.149471e-4 weeks <br />4.9465e-5 months <br />, the weapon was*

found by a security officer about ten feet from the Security

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luilding beside the path leading from the back door of ~he

Security Building to the Administration Building. The weapon vas

found barrel dovn in the *now_ with the grips exposed. It is the

licensee's opinion that due to the position of and location at

which the weapon was diacovered, it appears that the weapon was

placed there *hortly before it was found. lt shou!d be noted

that the location at which the revolver was found had been searched

visually and with a metal detector *ome time prior to its recovery.

On February 16, 1978, the lic~nsee's Security Operations Supervisor

and representatives from the NRC interviewed the security officer

vho was issued the weapon.

The security officer was reluctant

to admit he even had the weapon and he could not offer an explanation

as to bow it could have left his holster. The licensee stated that

polygraphs would.be given to the aecurity officer and other ~embers

of the security force.

The licensee further stated their investi-

gation vould .continue and the NRC would be kept informed of all

developing matters.

The weapon was *ent to the state crime labora-

atory for further analysis.

~

S.

Exit lnteTVie~

The inspect~r"f_.inet.vith licensee representatives at the conclusion

of the invest_igation on February 3, 1978.

In arlrlition to indbriduals

denoted in ~aragraph 1, ~. ~arnick, Chief, Jleactor Projects, Section

No. 2, Riii, was also present. During the interview, the inspectors

discussed the findings of the investigation and reviewed the

apparent items of noncompliance.

The inspectors expressly reempha-

sized the seriousness of concern felt over the apparent break.do~'Tl.

in effectiveness of the secur1~y system employed by the licensee.

Also, an exit 111eetirig was hel~ February 17, 1978, after the follow-up

investigation of the lost weapon. After discussion of the incident,

the licensee agreed to 1nf orm RIII of any additional findings.

ln addition, a final management meeting was conducted between

senior staff members of Consumers Power Company (denoted in

Paragraph l above) and the Director of the NRC's Office of

Inspection and Enforcement, Jlegion Ill, on March 7, 1978.

During the 1r1eetiug, the licensee was again informed of the acope

of the investigation and was infon:ned of th_e. NRC's finding for

each allegation.

In addition, the licensee's management

representatives-were informed of the apparent items of noncom-

pliance which vere noted as * result of the investigation of

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!,_/.

allegations or review of previously identified ooncompliance.

Further, the Tepreaentatives vere apprised of the NRC'* concern

over the licensee'* aanagement control *ystem, in that, the systetn

was not fully capable of identifying and correctin& problem areas.

Attachments:

i*.

Exhibit l

Statement

2. Addendum A, (Part 2.790(d)

Information)

3. Addendum B, (Part 2.790(d)

Information)

. . .

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USNRC

Washington, D.C.

Dear Sirs:

I am employed at the Palisades nuclear plant, Covert, Michigan and

I, like almost everyone these days, am concerned with security at

these facilities.

My concerns however regard the security forces

themselves.

Having worked around nuclear power plants for the past

several years I have watched the security forces grow from 2 or 3

retired part time, guards to forces of "several" men and women

equipped with and trained to use modern electronic equipment.

However, I feel less secure now than when I first started working

here!

The biggest reason for my concern is the extremely high turnover rate of

employees on the security forces.

Every couple of weeks a new training

class begins to replace personnel who have either quit or have been .fired.

It is very unnerving to me to know that every few days a bitter person,

who knows all about our security, either quits or is fired.

This is

~

giving a perfect weapon to someone who would like to penetrate -0ur security.

I believe the underlying cause for this situation is the pay and benefits

the guards wor'K'With.

One would hardly feel very good about working for

a place where the janitors make "more" per hour more than they do!

With-

out benefits!

For this very reasons the guard force at out plant is

preparing to strike. Personnaly I don't feel very secure knowing that

ex-security guards could be enticed to join terrorist groups or that

the entire security force could simply-walk off the job!

I believe that if the NRC is really concerned with security they would

investigate this prob~em and help establish professional security forces

who are proud of their jobs, take them seriously, and can live on the

pay without embarassment.

Thank you for listening,

Palisades Nuclear Plant

Covert, Michigan

EXHIBIT 1

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