ML19207A417
| ML19207A417 | |
| Person / Time | |
|---|---|
| Site: | Waterford  |
| Issue date: | 06/07/1979 |
| From: | Aswell D LOUISIANA POWER & LIGHT CO. |
| To: | James O'Reilly NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II) |
| References | |
| REF-PT21-79-127-001 PT21-79-127-001, PT21-79-127-1, NUDOCS 7908170487 | |
| Download: ML19207A417 (57) | |
Text
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y 5 t- Vi Pz. James P. O'Reilly Director, Region II rc Office of Inspection & Enforcement om US Nuclear Regulatory Commission 230 Peachtree Street NW Suite No. 1217 _- Atlanta, Georgia 30303
SUBJECT:
Louisiana Power & Light Company Waterford Steam Electric Station - Unit No. 3 Mechanical Draft Cooling Tower Gentlemen: We are in receipt of a letter dated May 3,1979 from Zurn Industries trans-mitting a copy of a letter dated May 3,1979 from Zurn Industries to you regarding Mechanical Draf t Cooling Towers in the Component Cooling Water System. In this letter Zurn raised questions regarding the performance of the Essential Cooling Water System (ECRS) . The performsnce of this system is largely dependent on the performance of the cooling towers supplied by Zurn. Cooling Tower per-formance requirements are defined in our contract with Zurn Industries. The requircments are based on the ambient wet bulb temperature (84 F wet bulb taking into account possible recirculatien) measured in the inlet chamber lead-ing to the tower. A=bient vet bulb temperature is to be measured at tha center line of the air inlet opening approximately two feet horizontally from the outer wall. Air inlet velocity distribution is also defined and will be veri.fied in the field. Air flow model and fill performance tests to establish conditions necessary for cooling tower performance were done by Zurn. Also as recommended by Zurn, additional model tests were not performed because they would not have ;rovided any add # tional information. To confirm that parameters pertinent to tower performance were adecuately evaluated in the model tests it was decided to conduct "in situ" tests. These tests will be conducted in accordance with ASME Power Test Code for Atmospheric Water Cooling Equipment (FTC 23) as specified in Paragraph 5 of Specification No. LOU 1564.114A Rev. 5 which is part of our contract with Zurn. Should these tests indicate a significant deviation in the performance of the ECWS, it would be promptly reported, if appropriate, to N?.C In1 I v !. 7O LJu 7908170%f/
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Mr. James P. O'Reilly Page 2 under 10 CFR 50.55 (e) . We believe that a test of the actual installation is the best way to. verify the - model test results and to confirm that all contract requirements are met by Zurn Industries. These tests will also prove that recirculation and air flow distribu-tion levels are acceptable. The overall design basis and performance evaluations of the ECWS are provided in FSAF mactions 9.2.2 and 9.2.5. These sections demonstrate that ECWS is seismic C togory I, redundant, powered from class IE sources, and wet cooling tower fans do not require tornado missile protection. From the above we conclude that our system design is more than adequate to meet required conditions assuming that the Zurn Cooling Towers function in accordance with specification requirements. We will gladly supply additional information on this subject if you require it. Yours very truly, D. L. Aswell DLA:TFG:smd cc- Mr. K. V. Seyfrit, Director, Region IV U. S. N u clear Regulatory Commission Office of Inspection and Enforcement 611 Ryan Plaza Drive, Suite 1000 Arlington, Texas 76012
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I 25-79-1005.143 R E C E I V l' D MAY 141979 Er R. K. Sta=pley- . Proj ect Manager R. F. CT/:r- - Ebasco Services, Inc. Tvo Rector Street q Nev.Terk, NY 10006 *' Mc/se; Subj ect: Louisiana Power & Light Co.
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Waterford SF.S Unit No. 3 ' Y '# ' Ehasco Contract NY-403528 - Prcj ect Identificatien No. LOU-1564.11LA c Jo a-NRC Rezulation 10 C R 21 3-/,.,/7
Dear Mr. Stanpley:
In your letter 1*73-1818-77 dated August 22, 1977, ycu notified Zurn Industries, Inc. of the issuance and effective date of the Nuclear Regu.latory Cennission's regulation 10 CFR 21. We responded in detail in our letter dated October 27, 1977, in which we listed our concerns and qaestions regarding the capabilit7 of the
.Fsseitial Cccling Water Syste (of which we have furnished the vet eccling tower cc:ponents) as designed and installed by ycu to function in a canner that will nr.et all its safe y related require-
=en ts . In that letter we also asked that you nake an evaluation of these concerns and questiens and advisa us of your conclusions.
Subsequently, in your letters LW3-2631-77 dated Dece-ber 16, 1977 and LV3-2661-77 dated Dececber 23, 1977, you reminded us that cur responsibilities uncer 10 CFR 21 regulations require Zurn to report to the NRC any defects cr deficiencies in equipnent supplied by Zurn and our suppliers. While the latter letter indicated that early pre 14-* naq studies of the essential cooling water systen were suh=itted by you to the NRC as part of the Prelininary Safety Analysis Report and that your evaluation of the syste=, including potential failures was to be submitted to the NRC vith the Final Safety Analysis Raper: early in 1978, we were not advised whether your studies included censideration of all of our cencerns and questiens, nor were we advised of the conclusions of your studies and evaluations.
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TA!,tPA FL U.S.A. 335C0 PHONE: E13/E704:-:0 TELEX: 52-410 m f, MAILING ADDRESS: P.O. SOX :4712. TA!.!PA, FL, U.:.A. 3:523 i L I r~ Coc!.h; ic w.v: **t:r: .~xted u:-: 'lictst fr: m Ea!cxe D ,'?r, R n;rge's. fectra' Re:utlic cf Ce" any" i
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j , 9 ZS-7 9-1005.143 e Er. R. K. Sta=pley , Ebasco Services, Inc. , Eay 3, 1979 - . Page 2 . I s Si=ilarly, during the February 2,1977 ceeting in your New York offices, =inutes of which were reported with your letter LW3-271-78 dated February 15, 1978, and also reported by Zurn in our letter - 25-78-1005.18 dated February 6,1978, we vere told that the Ebasco design of the cooling water syste= vas presented and accepted by the NRC through the PSAR and that since ve had notified Ibasco of our concerns in writing, we had ce= plied with the require =ents of 10 CFR 21 and no further action by Zurn on this =atter was necessary. Eere again, we vere not told whether your design included consideration of our concerns and questions, nor the conclusions of your studies. . While ve have designed and furnished our cooling tower cc=ponents . in accordance with our contract, and understand your assurances that studies requiced by federal regulations -have been =2de, we still have the sane concerns whether the equip =ent will provide the intended cooling duty under each of the required operating, ' accident and shutdcun =cdes and design conditiens, even though
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the Zurn cooling equip =ent , vill satisfactorily function in accordance vith centract require =ents. ' In the after:ath of the Three Eile Island Nuclear Plant incident last month, our legal counsel has reviewed this =atter in detail, and on the basis of their advice as well as our sincere concern that there may be a question of the capability of the Essential Cooling Water Systen to function adequately and thus prevent a potential safety ha:afd, we have concluded that_the -prudent p.recedure for us to follov
, is to notify'the Nuclear-Regulatory Cc==ission under the reqdif e=ents of 10 CFR 21 even in the._ event _ cur concerns.=ay not require notice- - ~
under 10 CFR 21 and even if your studies prove thacTou~rTolidErns
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are groundless. ' ' - ' It is recognized that the 10 CFR 21 Regulation is not clear concerning our responsibilities in =aking such.a report. Ecuever, the Regulation states that " Individuals that are subject to this part tha t beccee aware of a defect or noccc=pliance that is outside the responsibility of their crganination . . . .'. . . are encouraged but not required, to report to the Cc==1ssion kncun or suspected defects or failure to ce= ply."
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I i i .. . 25-79-1005.143 , l Mr. R. K. Stanpley i Ebasco Services, Inc. Eny 3, 1979 Page 3 To repeat, in light of the recent Three Mile Island incident and , b..cause ve are concerned that there =ay be a questien of safety sith regard to the capability of the Essential Cooling Water ' Systen, and upon advice of counsel, we believe we should take every precaution possible, both in the interests of the public as well as our own, and nake our concerns known to the Con =ission.
- A copy of our letter of notificatien to the h2C is attached. .
Very.truly yours, ZURN INDUSTRIES, INC. ling Tower Division , b u/ k/ W r u.,.y - Donald J. Se.7.gstaken ./ Vice President-Operations e
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I L .. May 3, 1979 zS-79-1005.142 RECE1VED Mr. Ja=us P. O'Reilly MAY 141979 Director, Region II Office of Inspection & Enforce =ent ' '
. U.S. Nuclear Regulatory Co-ission R. F. DE/EE 130 Peachtree Street, N.W.
Sui.te No. 1217 Atlanta, Georgia 30303 - Subj ect: Louisiana Power & Light Co=pany - Waterford Steam Electric Station - Unit No. 3 St. Charles Parish, Louisiana Eechanical Draf t Wet Cooling Towers . h7C Reculation 10 CRF 21 Gentlemen: . zurn Indus tries , Inc., Cooling Tower Division, is the supplier ~ of t:.o Mechanical Draf t Wet Cooling Towers for Louisiana Power & Light Conpany's Waterford Steam Electric Station Unit No. 3, under Ebasco Services, Inc. Contract NY-403523. Ebasco Services, Inc. are the Engineers and the Agent for Louisiana Power & Light Cenpany for this nuclear power plant project. The cooling towers supplied by Zurn Industries, Inc. are part of the Essential Cooling Water Systen, and in conjunction v'.th dry cooling towers, are required to renove heat fren the Conponent Cooling Water Systed (CCWS). The CCWS is designed to provide cooling vater to the reactor auxiliary equipnent during nor.._al plant opera-tiens and to renove heat fron the Reactor Coolant System during plant shutdown and to provide emergency cooling during accident and post accident conditions.
- The wet cooling tcwers and dry' c'coling towers are physically located and arranged in concrete cells in a tight array adjacent to the reactor building.
Zurn Industries, Inc. has fu nished all the vet cooling tower heat transfer and air =oving equip =ent for installation in the concrete ~ cells by the Owner.
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/. ) J ZURN U.'DUSTRIES, INC. CDOLl?/G TOWER DIV. LINCOLN CENTER,5401 WEST KENNED Y BL VD.
TAMPA, FL. U.S. A. 32509 PHCNE: E13/37: :040 TELEX: 52-:10 A m n', .- . MAILING ADDRE:S: P.C. EQX 2.:718 TA:??A, FL. U.S.A. 33623 T Zu n Coc!!?; To =- t: :*r ::ed
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May 3, 1979 25-79-1005.3.02 Page 2 - In our letter dated October 27, 1977, addressed to Ebasco Services, Inc., copy attached, which was prepared following issuance of Federal Regulation 10 CFR 21, we listed specific concerns and questions regarding the capability of the Essential Cooling Water
. Syste= to provide the required heat dissipation duty unders the re- -
quired operating, accident and shutdown = odes and design condit$ons. Copies of the below listed subsequent correspondence indicate that Ebasco Services, Inc. advised us that they had perfor=ed the cooling studies required by federal regulations and had included these studies and their conclusions in the Preliminary and Final Safety Analysis Reports. ,_Further= ore they advised that since we had notified the= in writing about our concerns regarding the application of our towers in their cooling syste= design, we had complied with 10 CFR 21 and no further notification to the NEC by Zurn was necessary.. We have studief the 10 CFR 21 regulation to deter =ine our explicit require =ents for notification of our concerns for application of our towers beyond the action taken on October 27, 1977 and find that there is no such explicit requirenent, particularly since we have designed and supplied the wet cooling tower components in full accor-dance with the purchase contract specifications.
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However,10 CFR 21 does explicitly encouraga reports of safety related concerns such as ours even though such a =atter is outside of our
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jurisdiction. For this ' reason, and because we do not have actual knowledge that the Co--<ssion has been or has not been adequately in-formed of our concerns and questions, and because we do not know of the scope or conclusions of the Engineer's studies regarding this
=atter, we are hereby no tifying the Co--4ssion that based on our know-ledge of cooling tower design and operation, as stated in our letter dated Octobt; 27, 1977 to Ebasco Services, Inc. , Zurn Industries, Inc.
has certain concerns and questions regarding the capability of the Essential Cooling Water Syste= of the Waterford S tea = Electric Station Unit No. 3 to function in a =anner that will adequately provide for all safety related cooling requirements. 1 i With regard to corrective action taken by the Owner or the Engineers, j if any is required, we know of none other than redesigns of the air inlet and outlet of the wet cooling towers following our advice that changes to eli=inate inter and intra cooling tower recirculation and for i=provement in air flow conditions were necessary. -
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Page 3 I i Please advise us if you require us, by lav or otherv se, to do anything beyond this letter in regard to our obligations under the require =ents
, of 10 CFE 21. .
Very tru y yours, ZT.iRN INDUSTRIES, INC. coling Tower "ivis en l .
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Donald J. Sengstaken Vice President-Operations ILIS:rg Attachnents :
- 1) Dasco letter LW3-IS18-77, dated' August-22, 1977 /
- 2) Zurn letter dated October 27, 1977 j ,
- 3) Dasce letter LW3-2631-77, dated Dece:ber 16, 1977 .
- 4) Ebasco letter LU3-2661-77, dated Dece=ber 23, 1977
- 5) Zurn letter ZS-77-1005.11, dated Dece=ber 20, 1977
- 6) Zurn letter 2S-78-1005.16, dated January 17, 1978 %
- 7) Zurn letter ZS-73-1005.18, dated February 6, 1978 #
- 8) Ebasco letter LW3-271-78, dated February 15, 1978 -
~ and Notes of February 2,1978 Meeting ,
- 9) Zurn letter 25-79-1005.143, da ed May 3, 1979 -
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Ebasco Services, Inc.- Two Rector Street New York, New York 10006 Attention: Pr. F. A. Myers , . Purchasing Agent -
Subject:
Louisiana Power and Light Co:pany k'aterford Unit No. 3 Mechanical Draft Cooling Tower Project Identification No. LOU-1564.114A Ebasco Furchase Order No. NY-403528 10CFR21 - Indentification and Insurance Centlemen: -- As you are aware, the Nuclear Regulatory Comnission recently issued a new regulaticn, ICCFR21 concerning the reporting of defects and non-compliance by the suppliers of equipment and/or services for safety-related components of a nuclear power plant. In as much as our contract was established prior to the issuance of , this regulation, the lump stn price in our contract includes no funds covering insurance for our employees, responsicle officers or directors or for reimbursenent to them in the event that they may be subject to civil penalty as a result of regulation 10CFR, Part 21. It is therefore recuested that the owner proU de Zurn Industries, Inc., with insurance to cover all costs which might be incurred as a result of enforcement of civil penalty against our employees, responsible
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officers or directors. - Additionally, with regard to your nuclear indennity insurance, paragraph
,18 of your standard Supplementary Terms and Conditions, 2'.3 LO'N 3, it is' requested that Louisiana Power and Light's indemnification of Zurn Industries covering public liability and nuclear property damage be ex-
. tended to Zurn e=ployees and responsible officers and directors. . -
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Tour earliest att.ation to this c.atter will be appreciate # / Very truly yours, , ZURN IND"STRIES NC. .
) W 0s n nn) 'l ) 0 DonaldJ.Sedsaf.cn Ui ~
Assistant C w al Mane; r ZURN INDU HIES, IHC. CCOLING TOWER C:V. LINCCLN CENTER,5:01 WEST KENNEDY SLVC.
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Ibasco Services, Inc.
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Two Rector Street R.ll STAMPLEY.v * ' New York, New York 10006 . Attention: Mr. Robert J. Sta=pley h Project Manager 4
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Louisiana Power and Light Company m Waterford Unit No. 3 E h Proj ect Identification No LOU-1 A4. 14A g Ebasco Purchase Order No NY-403528 g g, NRC Renulation CFR21 } Centic=en: V ' j 7 l
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f l 6 J.,/ '/ ] Ve are in receipt of your letter LW-3-1318-77, dated August 22, 1977 - . advising us of the existance of the new Nuclear Regulator / Concission Regulation 10CTR, ? art 21 concerning the responsibility of directors and respendble of ficers of organi: tions supplying safety-related co=ponents, to report def ects or non-ccepliances to the I;uclear Regulatory Co==ission.
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We have read these regulations and have contluded, as have others, that - they h5ve rather broad implications concerning the responsibilities of suppliers of equip =ent for the saf ety-related portions of a nuclear power plant. Tne ruling is quite clear that the responsibility for reporting cannot be delegated to the buyer and that it is a legal obli-gation of the supplier's responsible of ficers and direcrors. However, the scope of the suppliers responsibilities for reporting defects or non-compliance as it relates to the equipment he is furnishing is not clear. As one of the NRC of ficials has indicated, "a real dif ficulty (for each supplier) of Part 21, would be to -decide what is and isn't
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reportable under the rule". , Another URC official has stated that under the new rule, "a conditien or circumstance involving a basic component that could contribute to ' exceeding a safety licit is considered a substantial safety hazard", and is reportable. Even if a component is redundant, the U?.C of ficial pointed out that a. deficiency in that ce=ponent may be reportable isnder Part 21. As we understand the regulation, if we as a supplier, of the Louisiana Power and Light Cc=pany's Waterford Unit No. 3, Class III vet cooling
. tower equip =ent in accordance with your technical specification, ycur
. 2 URN INDUSTRIES,1NC. CCOLING TCWER CIV. LINCOLN CENTER,5401 WEST KENNEDY,E' VD. n p TAMPA, FL, U.SA 336:9 PHONE: 813/8704::: TELEX: 52-410 E,,__
MAILING ACDRESS: P.D. E OX 2471E. TAMPA, FL, U SA. 33523 - Zu-n Cec'.,; be s ~Cv:vxte:1 u rce I.:e se f : Ea':Le-C3rr. Ra'm;eq Fe dera! F eM.' cf C e a .* 5
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E$asco Services, Inc. Page 2' - () Two Eceter Street New York, New York 10006 , i Attention: Mr. P.obert J. Stanpley Tn a e m 9
^Uetcber 27. 1977 hj9 p I1 d... p ,9d fr f .
9 b NO I [5 Uh4 cooling tower design and your physical arrangement of the plant equip ent, believe there is a potential for deviatica from the specifica. ions and/cr the Owner's constructica license require-ments, we cust follow a procedure which cculd result in our sub-
=itting a report of such deviation to the Nuclear Regulatory Con-mission. .
We believe this p'rocedure begins with our evaluation that a poten-tial deviation exists. Following that we would report the deviation to you as the Purchaser, by requesting that .you perfor: jour eval-cation to determine that c substantial safety hazard is involved and that ycu advise us of your determination. As you are aware, Zurn Ir.dustries, Inc., is not in the positien to take this evaluation.
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If your conclusions are that the deviation could create a subst:ntial safety hazard, the deviation rust'then be reported as a defect to the Nuclear Regulatory Cc==ission by us and probably by you. As you 1 mow, frc: the outset of our involve ent in this project, Zurn () Industries has expressed concern verbally for the capability of the overall cooling tower systen to function in the intended canner and therefore have linited our responsibility to the thernal perfor:ance of the det cooling towers based on the air inlet ccnditions at the botton inlet of the towers and the air distribution pattern limit-ations specified in our proposal. In addition, our warranties concern-ing'equipnent and caterials are based on proper and nor:21 cperating and naintenance in acco dance with the ranufacturers' require =ents and the Zurn operation and taintenance canuals. , yr- - -
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The basis of our concern for the capability of the overall cooling tower systen to function in a ranner that.will =ce: the safety-related require-cents include the following: - r--- -- . . ,
- 1. Potential interaction between the discharge from the dry cooling r.: tover and the intake of the wet cooling tower. .
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- 2. ' Potential recirculation of the discharge frc: the wet cooling tower ito its intake. .
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- 3. The ef fect of potential increases in heat load to the wet tower
. : due to recirculation between the inlet and cutlet of the dry 1ctower during the operating mode in which the wet cooling tower tcacts as a peaking cooling syste: for the dry cooling tower systen.
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l Ebasco Servi:cs, Inc. Pace 3 Tyo p.ector ftreet . Ncv York, Uce York 10006 () Attention: Mr. Robert Octo'er 27. 1977 J. Sta=pley v_ .
- 4. Potential =aldistribution of the air flow pattern in the completed tcver beycad the li=its specified in our proposal of March 4, 1977. -
- 5. Whether or not there is adequate redundancy of alter ==te i cooling tower systens. ,
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- 6. 'Whether or not there is adequate redundancy of fan equipment within the vet cooling towers. In the event that a single fan failure were to occur in one of the wet cooling towers, the therral perfor=ance of that cell vould be reduced approx-inately 50%.
- 7. Whether or not the energency diesel power systen has been
' designed to provide adequate pcuer fer starting the re.t cooling tower fans under energency condi.tions.
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- 8. Whether or not there is adequate missle protection for the cooling tower fans. We are aware of licilar cooling tower g
systems designed to provide similar safety-related service kh for nuclear plants, in which considerably = ore extensive missle protection is provided for the teoling tower fans. ^
- 9. Whether or not the steel e= bed ents in the concrete v211s of
*he cooling rover are adequate to provide support for the cooling tower fill and distribution pipin', under all design bases and '
energency cenditions.
- Because of cur concerns outlined above, we are requesting that yea.
perfc== an evaluatien of the capability of the overall cooling tower syste= to provide the intended cooling duty under each of the required operating, accident and shutdown = odes and design conditions. We would appreciate your advising us of the conclusions of your evaluation as quickly as possible in order that we =ight comply with the requirements of the Nuclear Regulatory Co==issions Regulation 10CFR21. . It is regrettable that we =ust take this unusual position as the supplier of your equipment, but, as I a= sure_ you apprecinte, we cust ce= ply with the law. ,
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T.co Rector Street h New York, New York 10006 Attenticn:- Mr. Ecbert J. Stanpley October 27, 1977 . h Very truly yours, ZURN IND::STRIES, INC. anling Tower Division . J N h ll l Donald J. Ser v.aken Assistant General Manager - cc: F. J. Sweeney
, Chief Mechanical Engineer Ebasco Services, Inc.
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EBXSCO SERYlCES i, 1 N C 0 R P Q R A T E -D . i C N GIN EE R S - CONSTRUCTORS O UTILITY C O N SU LT AN T S .- .
. TWO RETT OR STREET ~
N EW YORK. N.Y. 20005 .
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Decc=ber 16, 1977
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. File: SQ-C-7b ., .
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Hr. Donald J. Sengstaken -
- Assistant Generzl 1:anager ,
Zurn Industries, Inc _ 5401 West Rennedy 31vd. ,. . P O Box.24718 ' Tampa. Florida 33623 . Re: LOUISIANA POhER & LIGH R COMPANY - WATERFORD SES UNIT NO. 3 1ECHANICAL DRAFT COOLING TOWERS & ACCESSORIES - P O NO. NY-403525 ~
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TITLE .10 OF FEDERAL REGUIATIONS PART 21' - .
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Dear Mr. Sengs taken:
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0-- Your reques t, in 'a letter to Mr. F. Meyers, dated October .27,1977, is .
- contrary to our position on this subject matter. .
curn is responsible for fulfillment of all requirements contained in our- , Prochase' Contract No. NY-403528, of which Specification LOU-1564.114A - -
- Revision 2 is a.part. -As a result of Title 10 of the Code of Federal ~
Regulations Part 21, Zurn is required by law'to report to the NRC any defects or deficiencies in equipment supplied by Zurn and/or by Zurn's subsuppliers. Our interpretation of this regulation is that we, Ebasco, or our client, are not responsible for issuing insurance nor is there of any allowable by law to cover all cests incurred by Zurn, as a result . . penalty, should Zurn fail to report a kncun defect or deficiency. . . . . urther, it is our intent to discuss this catter at our forthecoing ' eeeting to be held within the next three weeks. We suggest that your .' interpretation of'this law be re-evaluated with your legal counsel. Very truly yours , - F J Sweeney, Jr Chief Mechanical-Nuclear Engineer
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N2v York, New. York 10006 Attention: Mr. F. A. Myers. 0:tcher 27, 1977 Very tri.ly yours, . ZUR'i IEUSTRIES, INC. 'l ~! Coolin '.'oeer Divisi n Ja ( CLO~ n ,, . Thocas C. Vicary ' - Vice President-Marketing s cc: Mr. L. J. Sas Mr. R. K. Sta=pley TCV:MO - e
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EBASCO SERVlCES < INC0RPORATED UTILITY CONSULTANTS - E N GIN E E R S - CONSTRUCTORS I TWO RECTOR STREET NEW YO RK, N.Y.10006 Dece=ber 23, 1977 LW3-2661 -77 , File: SQ-C-7b
. l Mr. Donald J Sengstaken Assistant General Manager -
Zurn Industries, Inc . 5401 West Kennedy Blvd - '- P O Box 24718 Ta=pa, FL 33623 ' Re: LOUISIANA PCER & LIGHT COMPANY ," . WATERFORD SES UNIT NO. 3 - ' MECFJdi1 CAL DPJLFT COOLING TCMERS & ACCESSORIES - P O NO. NY-403528 ,' ',
Dear Mr. Sengstaken:
h -' Your letter to Mr. R K Sta=pley, dated October 27, 1977, concerning Title 10 of the Code of Federal Regulations, Part 21, is contrary to our -in-terpreta tion of this law. The following gives our position on this matter. Zurn ,is responsible for the fulfillment of all requirecents contained in our Purchase Contract No. FI-403528, of which Specifica tion LOU-1564. . , 114A Rev-2 is a part. By acceptance of this Purchase Contract, Z' urn .has guaranteed the performance of the Cooling Towers in acecrdance with con-ditions outlined in our Specifications. In addition, Ebasco paid for codel and fill tests to prove conditions necessary for cooling tower per-formance. Also, by Zurn's reco==enda tion, additional' tes ts were not perforced because they would not' have given any additional information. Zurn's scope of responsibility is, in our esti=ation, quite clearly defined. Ebasco has perforned an evaluation of the essential coo ~ ; g water system including potential failures, and this is part of the final . Safety Analysis Report = to be subnitted to the NRC early nert year. Pre- ..
. lininary studies were sub=itted to the NRC as part of the Preliminary Safety Analysis Report an ' on this basis the Construction Permit for Waterford SES, Unit No. 3 was issued. - - -
~
In accordance with Regulation 10 CFR, Part 21, which beca=e effective August 10, 1977, Zurn is obligated to report all defects and deficiencies of co=ponents fabricated by Zurn and/or by their subsuppliers. The format for a report of defect or deficiency is ' contained in this regulation. We suggest that Zurn legal counsel further review this regulation relative to its racification on this contract. .
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, EBASCO SERVICES InctarcaAfta s '
Mr. Donald J. Sengstaken Dece=ber 23, 1977 In closing, I would like to express that Ebasco and LP&L =anage=ent are - quite perturbed with what we feel is Zurn's "on again off again" attitude relative to the warranty / guarantee of the cooling tower perfor=- ance. We've worked closely with Zurn Manage =ent over the past year to resolve all catters surrounding this contract. The i=pression given in the first half of the year was that the para =eters surrounding this -
=atter were quite clear in everyone's mind. Ncre, with the issuance of this letter, as well as others, the distinct i=pression lef t is that Zurn has taken a negative posture concerning this contract. Hopefully, as a result of our forthec=ing meeting within the next three weeks, our initial negative i=pressions will be ' dispelled. -
, Very truly yours, -
~
7 J SWEENEY, JR "~ Chief Me hanical-Nuclear Engineer
~
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- Ebasco Services, Inc. -
Two Rector Street New York, New York 10006
.y Attention: Mr. F.,A. Myers j
Subject:
Louisiana Power and Light Company Waterford Unit No. 3 Project Identification No. " 1 %4.ll4A Ebasco Purchase Order No. .iY-40352 - -
, Liabilitv/ Indemnification t .
Gentlemen:
- During our meeting of October 7, 1977, Zurn' expressed concern rega: ding the need for nuclear indemnification and the effect which this is having on the delivery of sixteen Allis-Chalmers motors which are required on the project. We..also discussed ,
the nechanical warranties which apply to the purchase order. These concerns a;e interrelated and will require resolution in order to allow urn to proceed with work on this project. - Zurn and our subcontractors believe that the provitfons in the Louisiana Power and Light /Ebasco Supplementary Terms and Conditions (ST&C) ara not sufficiently detailed to assure us of the follow-ing: , ,
- 1) That Zurn and its subcontractors of any tier will not be ,.
responsible for consequential damages of any kind. (Ref-erence: ST&C, Article 16 and Zurn letter February 12, 1977).
- 2) That, f ollowing shipment, the total liability of Zurn or its' subcontractors of any tier, shall "in no case exceed the cost of repairing or replacement for parts or =aterial
~ '
which is defective in design, work =anship, material and title" and that "the Seller shall not be required to correct any defects which may appear af ter one ym from the date of com-nercial. operation: (
Reference:
ST&C, Article 16).
- 3) That Zurn and its subcontractors of any tier shall be indem-nified by Louisiana Power and Light Cocpany from all liability to third parties, including both public liability and liability due to nuclear property damage.
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e - ZURN INDUSTRIES, INC. CCOLING TOVIER D:V. LINCCLN CENTER. 5401 VIEST KENNEDY BiVD. TAMPA. FL. U.S 4 33529 P:-C:.f: 813/870-C:40 TELEX: 52-410 CA!.C K E MAILNG ACCRfSS. P.O. ECX 2:712. TA.'PA. FL U.S A. 33623 ; ' Zen Coom; Tc+e s C:~s"u:'ec u ':e? I:ense V - 23':b c 03r?. R:!.n;en. Fe:eralRe::::h: o! Ger: any"
g!, a step ahea:: of tamccrow Eb'asco Services, Inc. Page 2 Two Rector Street New York, New York 10006 Attention: Mr. F. A. Myers October 27, 1977 ,
- 4) Tha t , except for the liability specifically stated in Item 2 above, Zurn and its subcontractors of any tier , ,.;,
shall continue to recieve the same inde=nification and on the same basis as.provided by Louisiana Power and Light Company, from any party who may obtain whole or partial ownership of the plant.
-It is our understanding that these licitations are the intent of Articles 16 (Guarantee) gand 18 (Nuclear Indemnity and insur-ance) of the Ebasco Supplementary Terms and Conditions.
Article 16 is the only part of the purchase order which defines Zurns' liability following shipmen; of the equipment. It appears clear that Items 1 and 2 above are satisfied by this article. In paragraph 1, of Article 18, Ebasco indicat,es ,that Louisiana . Power and Light will obtain " insurance to. cover the 'public - liability' of contractor". We do not have any knowledge of the nature of this insurance or what coverage it affords Zurn and our subcontfactors against third, party suits. Likewise, the fourth paragraph under Public Liability does not define the teams of _the Owners' insurance coverage, but does indicate that it
. is the Owners' intent to totally inden2ify Zurn based on any alter-ation in the insurance and indemnification agreement, such as might occur with change in ownership cf the plant.
As stated in our letter dated January 12, 1977, "Zurn's liability would be limited to those provisions outlined in your Supplementary Terms and Conditions. It is our interpretation of these terms that they provide the limited liability which we detailed above. We would appreciate your confirmation that we have.ccrrectly stated . the limits of our liability in this letter. - Due to the critical nature of. shipment of this equipment, it is important to obtain confirmation as soon as possible. Allis-Chalaers cannot ship the cotors until 21 weeks after this ratter is settled nor can Zurn release equipment for f abrication. A letter or telex af firning the limited liability of Zurn, as listed herein, will allow us to proceed. Should you have any questions, please call ce. m J<
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Ebasco Services,.Inc. ' Page 3
'Two Rector Street New York, New York 10006 . '
Attention: Mr. Robert J. St'ampley October 27,.1977
- 4. Potential =aldistribution of the air flow pattern in the completed tower beyond the limits specified in our proposal of March 4, 1977.
- 5. Whether or not there is adequate redundancy of alternate .
cooling tower systems. ~
- 6. Whether or not there is adequate redundancy of fan equip =ent within t he wet cooling towers. In the event that a ' single '
fan failure were to occur in one of the wet cooling towers, ' the thermal perfor:ance of that cell would be , reduced approx-imately 50%. t
- 7. Whether or not the emergency diesel power system has been designed to prov'ide adequate power for starting the wet "
tooling tower fans under emergency conditions. , 8.* Whether or not there is adequate cissle' protection for the - cooling tower fans. We are aware of similar cooling tower systems desi,gned to provide similar safety-related serv' ice for nuclepr plants, in which considerably core extensive missle protection is provided for tha cooling tower, fans. ,, 9. Whether or not the steel e=bedments in the concrete walls of
-the cooling tower are adequate to provide supnort for the cooling *
' tower fill and distribution piping under all design bases and ' '
, emergency conditions.
Because of our concerns outlined above, we are requesting that you. perform an evaluation of the capability of the overall cooling tower system to provide the intended cooling duty under each of the required. . operating, accident and shutdown modes and design conditions. He would
~ appreciate your advising us of the conclusions of your evaluation as quickly as possible in order that we tight cocply with the require =ents of the Nuclear Regulatory Co==issions Regulation 10CFR21.
It is regrettable that we must take this unusual position as the supplier of your equip =ent, but, as I am sure you appreciate, we cust co= ply with the law. b
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I Page 4
. , Ebasco Services, Inc. .
Two Rector Street ,- New Ycrk,,New York 10006 Attentien: Mr. Robert J. Sta=pley . October 27, 1977 ' . , Very truly your.;, 2 URN INDL'ST?lES, INC. *
/^oling Tower DivisionC .
/V- l JV i Vn -
Donald J. Ser - - Assistant Ger.Lv'.aken eral Manager ,
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T cc: ?. J. Sweeney - Chief Mec'aanical Engineer Ebasco Services, Inc. . R. F. Lindsay . G. E. Bodick y. _. , T. C. Vicary '- M. V. C;tber . DJS :MG- I -
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Ebasco Services, Inc. Two F.ecter Street
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New York, New York 10006 . Attention: Mr. F..' A. Myers , Purchasing Agent
Subject:
Louisiana Power and Light Co=pany
*'aterford Unit No. 3 -'
Mechanical Draft Cooling Tower Project Identification No. LOU-1564.114A Ebasco Purchase Order No. NY-403528 . 10CFR21 - Indemnifica~ tion end Insurance Gentlerien: - As ycu are aware, the Nuclear Regulatory Co::;ission recently issued , a new regulation, 10CFR21 concerning.the reporting of defects and non-co=pliance by the suppliers of equipment and/or services, for ' safety-related /components of a nuclear power plant., - In as cuch as our contract was established prior totthe is.;uance of this regulation, the lump sua price ic our contract includes no funds ccvering insurance for our, ecployeer, responsible officers or directors .
. or frr rei:bursement to them in the event that they may be subject to ,
civil' penalty as a result of regulation 10CFR, Part 21. ' it - It is therefore requested that the owner provide Zurn Industries, Inc., . with insurance to cover all costs vF4ch might be incurred as a result of enforce =ent of civil penalty agt ut our empicyees, responsible officers or directors. Additionally, with regard to your nuclear indemnity insurance, paragraph 18 of your standard Supplementary Terms and Conditions, 243 LOUW 3, it is requested that Louisiana Power anu Light's indemnification of Zurn Industries covering public liability and nuclear property da= age be ex-tended to Zurn employees and responsible officers and directors. Your earliest attention to this matter will be appreciated. Very truly yours, CURN INDUS RIES NC. _, q r 7 ,' 7
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D:nz M .'. S c y: s a r e.~ Assis: ant Cgne 21 !:ana; r
- URN INDU,=JRIES, INC. CCCLI?.3 TC'.','ER C!V LINCOLN CENTER. 5401 WEST KENNEDY BLVC.
D: ,= .t:', TAM =N FL. U S A 33E:9 PMD','E. E:3/870-:34C TELEX: 52-210 D:.Lcx E t.* A :U'.'G AC =ESS F O. BOX 2:718. TA!.A. FL. U.S A 325 3
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- 9 Ebasco Services, Inc. Pare 2 -
. Two Rector Street
. New York, New York 10006 Attention: Mr. Robert J. Sta:pley ,
, October 27, 1977 ,_
~. .
cooling tower design and your phy;ical arrangement of the plant equipment, believe therc is a potential for deviation from the specifications and/or the Owner's construction license req 0 ire- 4" ments, we cust. follow a procedure which.could result in our sub-nitting a report of such deviation to the Nuclear Regulatory Com-uission. We believe this p'rocedure begins with our evaluation that a poten-, tial deviation exists. Following that we would report the deviation
, to you as the Purchaser, by requesting that .you perform your eval-uation to determine that a substantial safety hazard is involved -
and that you advise us of your determination. As you are aware, Zurn Industries, Inc., is not in the pos.ition to =ake this evaluation. If your conclusions are that the deviation could create a substantial safety hazard, the deviation =ust then be reported as a def ect to, , the Nuclear Regulatory Cc==ission by us and probably by you. . v . . As you know, f 7en the outset of our in'volvement in this proj ect, Zurn Industries has expressed concern verbally for~ the capability of the overall coo,11'ng tower syste to function in the -intended canner and therefore have limited our responsibility to thp thermal perforcance of the vet cooling towers based on the air inlet'conditicas at'the -
, botto inlet of the towers and the air distribution pattern limit-ations specified in our proposal. In addition, our warranties concern-ing equipment and caterials are based or proper and normal operatin~g and maintenance in accordance with the manufacturers' requirements and the Zurn operation and =aintenance canuals.
The basis of our concern for the capability of the overall cooling tower system to function in a =anner that will ceet the saf ety-related require-ments include the following: _ 1. Potential interaction between the discharge from the dry cooling - tower and the intake of the wet cooling tcwcr.
- 2. Potential recirculation of the discharge fro = the wet cooling tower to its intake.
- 3. The effect of potential increases in heat load to the wet tower due to recirculation between the inlet and outlet of the dry tower during the operating _ code in which the wet cooling tower acts as a peaking cooling syste= for the dry cooling tower system.
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" Bro Rector Street .
New York, New. York 10006 ~
-Attention: Mr. F. A. Myers. . .
- October 27, 1977 .
Very truly yours, ZUR'i IlO'JSTRIES, INC. '
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Coolin~ Tower Divi'si n . yAya (CV [),
- Tho=as C. Vicary -
Vice President-Earketing , cc: Mr. L. J. Sas
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Mr. L. J. Sa s's i January 17, 1978 3 . Face Two I contract in a timely canner including the meeting of guarantees of per-forcance and warranties in accordance with our basic negotiations and under s tand ings. We would like to assure you that we do not have an "on-again, of f-again" attitude towards this contract and are hopeful that discussions to be held at our forthcocing meeting on January 19, 1978 will open the way for core fruitful dialogue and understaading in our continuing relationship. Very truly yours, iLili INDUSTRIES, INC. Cooling Tower Division
&), - //(
n DonaldJ.l,aSengstaken h Assistant General Manager DJS:lcl cc: R. F. Lindsay G. E. Sodick R. C. McClenathan/New York e
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M-, M J - Z5-79-1005.143 Mr. R. K. Sta=pley - Ebasco Services, Inc. May 3, 1979 Page 2 Similarly, during the February 2,' 1977 =eeting in your New York . offices, tinutes of which were reported with your letter LW3-271-78 dated February 15, 1978, and also reported by Zurn in our letter ZS-73-1005.18 dated February 6, 1978, we were told that the Ebasco design of the cooling water systc= vas presented and accepted by the NRC through the PSAR and that since we had notified Ebasco of our cencerns in writing, we had conplied with the require =ents of 10 CFR 21 and no further action by Zurn on this tatter was necessary. Here again, we were not told whether your design included consideration of our concerns and questions, nor the cccclusions of your studies. While we have designed and furnished our cooling tower co=ponents in accordance with our contract, and understand your assurances that studies required by f ederal regulations have been =ade, we still have the same concerns whether the equip =ent will provide the intended cooling duty under each of the required operating, accident and shutdown modes and design conditions, even though the Zurn cooling equip =ent will satisfactorily function in accordance with contract require =ents. In the af ter=ath of the Three Mile Island Nuclear Plant incident last
=onth, our legal counsel has reviewed this =atter in detail, and on the basis of their advice as well as our sincere concern that there
=ay be a question of the capability of the Essential Cooling Water Systen to function adequately and thus prevent a potential safety ha afd, we have concluded that the prudent procedure for us to follow is to notify the Nuclear Regulatory Cc==ission under the require =ents of 10 CFR 21 even in the event our concerns nay not require notice ,
under 10 CFR 21 and even if your studies prove that our concerns are groundless. ~ It is recognized that the 10 CFR 21 Regulation is not clear concerning our responsibilities in =2 king such .a report. However, the Regulation states that " Individual _ that are subject to this part that beco=e avare of a defect or nonco=pliance that is outside the responsibility of their organization . . . . . . . are encouraged but not required, to report to the Cc==ission known or suspected defects or failure to c e=p ly . " 7r7 L __
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/, ,i a step aheadof temorrow n= -s ; y MAY 211979 WATEEFO*'.D Gzs _;
, M-N E2ir-D 2" -,I ;c, May 3, 1979 [
25-79-1005.143 RECEIVLD l MAY 141979 Mr. R. K. Stanpley Proj ect Manager R. F. C E!.y:- Ebasco Services, Inc.
'No Rector Street g J New Ycrk, h7 10006 J M e h r:
Subj ect: Louisiana Power & Light Co.
% /cue Waterford SES Unit No. 3 ' Y 4' '
Ebasco Contract hT-403528 Proj ect Identification No. LOU-1564.114A Cdh NRC Reculation 10 CFR 21 3-/z,/7 9
Dear Mr. Stanpley:
In your letter LW3-1818-77 dated August 22, 1977, you notified Zurn Indestries, Inc. of the issuance and effective date of the Nuclear Regulatory Co=ission's regulation 10 CFR 21. We responded in detail in our letter dated October 27, 1977, in which we listed ou cencerns and questions regarding the capability of the Essential Cooling Water System (of which we have furnished the wet ccoling tower conponents) as designed and installed by you to function in a canner that will neet all its safety related require-
=ents. In that letter we also asked that you nake an evaluation of these concerns and questions and advise us of your conclusions.
Subse:;uently, in your letters lW3-2631-77 dated Decenber 16, 1977 and LW3-2561-77 dated December 23, 1977, you reminded us that our responsibilities under 10 CFR 21 regulations require Zurn to report to the NRC any defects or deficiencies in equip =ent supplied by Zurn and our suppliers. While the latter letter indicated that early prelininary studies of the essential cooling water systen were submitted by you to the NRC as part of the Prelininary Safety Analysis Report and that your evaluation of the systen, including potential failures was to be sub=itted to the NRC with the Final Sciety &:alysis Report early in 1978, we were not advised whether your studies included consideration of all of our concerns and questions, nor were we advised of the conclusions of your studies and evaluations. 70y ', 219 ZURN IN:USTRIES, INC. COOLING TOWER CIV. LINCOLN CENTER,5:01 WEST KENNED Y SL VD. m TAl.f?A, FL. U.S. A. 23E09 PHCNE: 813l870-0040 TELEX: 52-410 gj[cyg MAILING A:D:E:S: P.C. BOX 24718. TAl.fPA, FL, U.S. A. 33523 L-Z.~ ::9; To*~ "::ns:"s::ed un:e 1::ense it: E::cxe-DJrr, Ratinge,, Federal Republic of Ge many" U'
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ZS-79-1005.143 Mr. R. K. Sta=pley Ebasco Services, Inc. May 3, 1979 i Page 3 To repeat, in light of the recent Three Mile Island incident and because we are cencerned that there cay be a question of safety with regard to the capability of the Essential Cooling Water Systen, and upon advice of counsel, we believe we should take every precaution possible, both in the interests of the public as well as our own, and nake our ccacerns known to the Co==ission. ' A copy of our letter of notificatien to the NRC is attached. Very truly yours, ZUEN I'iDUSTRIES, INC. ling Tower Divis en
.g f'] ' -.hilf l Donald J. Ser.gstaken .,/
s Vice President-Operations e DJS:rg Incis. e I
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. ~ . - -. -f May 3, 1979 '
'S-79-lC 05.14 2 Page 2 I
In our letter dated October 27, 1977, addressed to Ebasco Services, Inc., copy attached, which was prepared folioving issuance of Federal Regulation 10 CFR 21, we listed specific concerns and questions regarding' the capability of the Essential Cooling Water System to provide the required heat dissipation duty under the re-quired operating, accident and sh'utdcwn = odes and design conditions. Copies of the below listed subsequent co respondence indicate that Ebasco Eerviceg, Inc. advised us that they had perforced the cooling studies required by federal regulations an' had included these studies and their conclusions in the Prelimina .nd Final Safety Analysis Reports. Further= ore they advised that since we had notified them in writing about our concerns regarding the application of our towers in daeir cooling system design, we had co= plied with 10 CFR 21 and no further notification to the NRC by Zurn was necessary.. We have studied the 10 CFR 21 regulation to determine our explicit requirements for notification of our concerns for applicatica of our towers beyond the action taken on October 27, 1977 and find that there is no such explicit requirenent, particularly since we have designed and supplied the wet cooling tower components in full accor-dance with the purchase contract specifications. However,10 CFR 21 does explicitly encourage reports of safety related concerns such as ours even though such a =atter is outside of our jurisdiction. For this reason, and because we do not have actual knowledge tha t the Co= ission has b zen or has not been adequately in-for=ed of our concerns and questions, and because we do not know of the scope or conclusions of the Enr,ineer's studies regarding this ta tter, we are hereby notifying the Co=missica that based on our know-ledge of cooling tower design and operation, as stated in our letter dated October 27, 1977. to Ebasco Services, Inc. , Zurn Industries, Inc. has certain concerns and questions regarding the capability of the Essential Cooling Water System of the Waterford Steam Electric Station Unit No. 3 to function in a tanner that will adequately provide for all saf ety related cooling requirements. With regard to corrective action taken by the Owner or the Engineers, if any is required, ue know of none other than redesigns of the air inlet and outlet of the wet cooling towers following our advice that changes to eli=inate inter and intra cooling tower recirculation and for i= prove =ent in air flow conditions were necessary.
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May 3, 1979 Z5-79-1035.142 Page 3 Please advise us if you require us, by law or otherwise, to do anything beyced this letter in regard to cur obligations under the requirements
, of 10 CFR ll.
I Very truly yours, ZURN I!QUSTF.IES, INC. coling Tower ivision l [e l W " Donald J. Sengstaken Vice President-Operations DJS:rg Attachments:
- 1) Ebasco letter LW3-1818-77, dated August 22, 1977
- 2) Zurn letter dated October 27, 1977
- 3) Ebasco letter LW3-2631-77, dated Dece=ber 16, 1977
- 4) Ebasco letter LW3-2661-77, dated December 23, 1977
- 5) Zurn letter 25-77-1005.11, dated Dece=ber 20, 1977
- 6) Zurn letter ZS-78-1005.16, dated January 17, 1978
- 7) Zurn letter ZS-78-1005.18, dated February 6,1978
- 8) Ebasco letter LW3-271-78, dated February 15, 1978 and Notes of February 2,1978 Meeting
- 9) Zurn letter ZS-79-1005.143, da ed May 3, 1979 O
m
EBASCO SERVICES I N t U H l' U R A 1 t.U EN GIN C E R S - C C. N S T R U C T O R s - C O N SU LTA NT S TWu at-rl un S t ui 1.1 N EW Y U H l.. N. Y.1000t. c . .oo. . ....co.. May 25, 1979 LW3- 1045-79 File: SQ-C-7B . Mr D i. Asvell Vici President - Power Production Lotisiana Power & Light Conpany 14'. Delaronde Street "ev Oricans, LA 70174 f693D' .x "O Re: WATERFORD SES UNIT NO. 2 WET COOLING TOWERS [h h t[3 Ta\ {" \b ,,;f, $ g Ref: 1. Zurn Letter ZS-79-1005.14 2, dated May 3, 1979 y (*:..GP;.f. g/tRg'?
- 2. ZS-79-1005.143, dated May 3, 1979 '2 ' '
- 3. Meeting of May 22, 1979 - 9@Cte,.IlM\q,C@<
Dear Mr Asvell:
In the teeting held on May 22. 1979, it was decided that Ebasco prepare a draft copy of a letter to the NEC for LP&','s sip 2ture, advising the NRC that Waterford SES Unit No. 3 F.ssentir.1 -Cooling Water Syste= is adequate. It maybeadvisable to send this letter to the NRC to counteract Zurn Corporation allegations as expressed in Reference 1.
*?e enclose e draf t copy of the proposed letter to the NRC. Should you have any conn.ents or questions on this letter, please do not hesitate to call us.
Very truly yours, PVG:iaaF2 7L7 L J SAS Encis Chief Mechanical-Nuclear Engineer cc: D L Aswell C,sm e L V Maurin p p. D E Lester By C Seoane F J Drr-,nd C J Decareaux Power Production rept - Nuclear (3) C Gibbs T F Gerrets (2) S A Alle=an Waterford 3 Site (2) P V Prasankunar T K Art.ington
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EBASCO S I:lW l C E S I N C D R P L1 R .\ T k. D cucinnc a s - c on s Taucro n s - c o n suLT A uT s TWU IWCl un STHi-t.1 N EW Y U R H. N. Y. 100Gli c..t. .L. .T . .. . c o.- May 25 1979 _D_ .R _A_ _T_ _E_' Mr Jams P O'Reilly Director, Region II Office of Inspection & Enforcc'ent US Nuclear Regulatory Ccnrtissica 230 Peachtree Street hw Suite No. 1217 Atlanta, Georgia 30303 Stbject: IDUTSIIce POG3 & LIGHT 02GANY 1G'IEREDRD STLYi EIICIRIC STATICN - LNIT No. 3 F2NJ4ICAL DR?TI' COOLIIC 'IGER Gentlea2n: H2 are in receipt of letter 25-79-1005.143 of Pay 3,1979 fmn Zurn Industries tranritting copy of letter 25-79-1005.142 of May 3,1979 fran Zurn Industries to you regarding Mechanical Draft Ccoling h'ers in the Ccnponent Ccoling Water Systen. In this letter Zurn raised qu2stions regarding the perfomance of the Essential Ccoling Yater System (EWS) . 'Ihe performance of this systen is largely dependent on the perfomance of the ccoling tcwrs supplied by Zurn. Cooling her perferrance requiremnts are defined in our contract with Zurn Industries. 'Ihe requiremnts are 0 based on the asient wat bulb te perature (84 F wet bulb taking into accotr.t possible recirculation) reasured in the inlet cha*er leading to the tcmr. Anbient wet bulb tcnparattre is to be reasured at the center line of the air inlet operdng apprc:drately t o feet hori:catally frun the outer wall. Air inlet velocity distribution is aisc defined and will be verified in the field. r) ' - ]u hu?q 6
E l; \ S I:ll SElllICES
,I t1 C B P G A 4 7 t C J P O'Feilly t'ay 25,1979 Air flcu ncdel and fill par,orance tests to establish conditions necessag for cooling toe _r perforance were done by Zurn. Also as rectrrended by Zurn, ailitional rodel tests were not perforned because they would not have provided any additional infonration. To ccafinn that para:Teters pertinent to to*'er -
perforance were adequately evaluatcd in the nodel tests it was decided to conduct
'in situ' tests. 7hese tests will be conducted in accordance with /GE Pcwer Test Code for Atnespheric Water Cooling Equipmnt (PIC 23) as specified in Paragraph 5 of Specification rio. IDU 1564.ll4A Rev 5 which is part of our contract with Zurn. Should these Tests indicate a significant deviation in the perfomance of the Eco, it would be prcnptly reported, if appropriote, to NFC under 10 CFR
- 50. 55 (e) .
R2 believe that a test of the actual installation is the best way to verify the rodel test results and to confirm that all contract requ:remnts are net by Zurn Industries. These tests will also prove that recirculation and air flcv distribu-tion levels are acceptable. 9e everall design basis and perfonrance evaluations of the ECG are provided in FSAR sections 9.2. 2 and 9.2.5. These sections denanstrate that ECG is seis:ric Catogary I, redundant, paured frcra class IE sources, and wet cooling tcuer fans da not reTaire tornado missile protection. Frcm the above we conclude that our systen design is nore than adequate to neet roTaired conditicas assuring that the Zurn Cooling 'Itsers function in ac:ordance with spacification rcqaircrrents. Wa will gladly supply additional infonration on this subject if you require it. Very truly yours, I'.G/ljw D L Aswell n' y, '.) ~ CvJ
EDi . C0 ~ S E R 'I ' E S .
- 1 ?; C U C.I' C D A T E D U T : :. : T Y C c t: s U L:;,. 7: T n - v' ;; O 1 :Jnras - c c Ir : T R U C T O t s a:.s . TM U I i:CTOR STREET . ,
N Ew Yalu;. ';.Y. macI; -
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n g- - /_ugust 22, 1977-hM g.2 b '[1 Mi5y 12:3-1818-77
- b b hifI L File 1o.: 1-P-S .
Zurn Industrics, Inc. , Coolir.) 'f orer Divisica - Lincoln Center -
. . St 01 r'ce t .:ennedy I.culevard -
Tettpa, Florida 32509 . SU3 JECT: Unterford SES Unit !!c. 3 . 10 CFR 21 p.o. ;;y-t,03 23 Decr Iir. T C Vicory, _ ,
"Thc' I:ecient P.cr.aln tcry Cc nis :icn it, c ::ending. its reguintlona tc. require directer.; :nd rcepco .ible officer: ci fir : nud ort.an'. to c-ticn bu il?. :. n ,;, operating, cr e. nir.~,1:7.C-lic en:c d ccti ci ties, re p:.r t fcilurcs to cc ply with regulatory rec,uire::ent:. end defects I,1 . o in -
cerponent: uhich c:y rc cit in't rebctentini refety hncard. ccvere 2 un'er the nc. re;ulatic.i; cre d recters and re.spon .ible efficerc , of fi-- :n cad. crccaiention:: ro:9 1yir. c a fe t.y -rci s teci ccur, unent n , includin; safety-related desia.n, te: ting, . in:;p,2ction cnd conculti.:3 scrvices.
~.
*fhis l e t te r in to notify you, as a r.upplier/contr -tor f'cr I!sterforel Unit No. 3, that the re; ula tior., .10 Cr2 21., ': ccmes ef fective on Augus t 10, 1077. Sheuld you der. ire a copy of the rer.ulation, it and further infor=ction is includ er' in EUREG-0302, hne - Prerent cd A- __
Publi c 3 -i nm1 n c t' r e -: To N r.co n Recc. int.ien (13 P n Part 21) in c M. - p or ti n~ bi Deftetc :d ab r.c c 91,i .~ ne n" . '1 hic DJcec. cat. 11 cvailable Fren:
. 1;ctional -Techainni Inic=ation Service
. Springficid, Virginin 22161. .
Price: Printed C:py M.00; Microfiche $3.00"
- Yours very truly, ,
-t V :
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- P.obert K Stampicy p,t;/g Pro.,3cet Manager gg cc: D L Asvell Power Production Dept Nuc(3)
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~, February 7, 1978 ZS-78-1005.19 ~ ~
l
! roasca Ser, ces i T-o Rector Stract
; I!cv York., ::Y 10006 -
. i.
'At tention: R. L. Roy - Proj ect Buyer Subj ect: Lcuisiana Pctier & Light Conpa:.y Waterford Unit !;o. 3 -
M^chanical Draf t Cooling Tovers r sco P.O. No. 403528 Prc,$ ec t Identificatien '30. LGU-155 ' . ll4 A
Reference:
Zurn letter 25-78-1005.15, dated 1/17/78 Gentlenen: Review of the subject letter has disclosed an enission in the third para rar.h.of e o.cre 2. Please correct the second fren last sentence of that paragraph to read as felle:. s :
"All such ncdifications shall be provided by purchaser at no cost to seller and could include the cddition of air directional vanes, additicnal fill =aterial, rearrangenent cf fill caterial, etc."
Tnis correction teets the intent of Zur letters dated 3/4/77, Vic2ry to Sas, anc 7/2f,/77, Vicary to ?.' eyers, co/ering this sane subject. Very truly yours, o L c., 7,- -
..u L e. u..,.L:. S , 1,C.
Coolin7 Tower Division
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.] l Two Rector Street New York, NY 10006 b
At tent. ion: R. L. Roy - Proj ect .Euyer
. Subj ec t: Louisiana Pcuer & Li;;ht Company .
Waterford Unit No. 3 Mechanical Draf t Cooling Towers Ebasco P.O. No. 403523 Proj ect Identificatica No.10U-1564.114 A Gentle =en: - This s.-ill confirn agree ents reached during c ur caeting in your of fices on February 2,1978. ,
- 1. Thermal Perfor ance Guarantee Ebasco will prepcre a ccatract t.hange crder centaining the following specification changes: . .
a) Revise Paragraph 5.3 ef Section 5, Thermal Perforncnce Tests, Ebasto Specificatica, Mechanical Draft Cooling Tower and Accessories, Part 2, General Require ents as follows:
" Performance shall be cased en the anbient s e t bulb temperature ceasured in the inlet cha-ber *.eadin3 to the tower."
'b) Add the following to paragraph 10.09 of Sectinn 10, Guaranteed Perforcance, Ebasco Specificatica, Mcchanical Draf t Cooling Tcwer and Accessories, Part 1, Specific Requirements:
"The purchaser agrees that the seller's Thernal Perfor ance Guaractec shall apply cni,. if the unifornity of air ficw distribution to the fill se:-
tion of each cooling tcwer cell is ecual to or bet:cr than the litits of Figure 1 cf curve No. Si:T-lC05-1 attcched
, , to Zurn Industries, Inc. Air Velecity Profile Evol ati:n ZuRh 1:.D'.! Sin:ES, INC. CCCLI:iG TG.*;ER CiV. LNCCL: Ci:; TER. 5~'31. '. ES T (E:.;.:u t = <.-
T TAMPA. FL. U S A. 335:? PhC .E. E:31272. ::: TELEX: 52-110 c.;, 1.!AILft:3 AD:=E:E F.C 5 x 2 ::E. T;!.'?;. FL. U S A. 33E23 l O $. aY '[, j f .$ (, af * . h [ $ f a [ ,*#f- f. ( ([h . ([ , h [ f l ',
. .. _. U )n/O
(.o
2 25-75-1305.13 . scasco e rv., ces A t t en tica : ?.. L. Roy - Prc'ect J 3uv.er i.
- - b .u
.c . . . _ ,. o,
- 9,2 .
o g _ o_ ~7 f i Test'L ,crt dc:cd January 19, 1977. A cor of curva SK!-lCO3-1 is 2 tached hereto. If the Coc_31ng t o'a'er ir IloW Velocity clstricution is less unl:or= : in L.:at incicated in :-1gure 1 or. SKT-lC05-1, an_ :he cooling :cwer perforcance does net teet specified guarantees, .the seller vill reconnend eccling tower nodifica: ions to
. the purchascr n., inprove the air flce distributien pattern. All such nodificaricas shall be provided by purchaser a: no cost to seller and could include the additicn cf air directional vanes, additional fill caterial, rearrangenent of fill caterial, etc.
When the flev distributica nee:s the linits indi-cated in Figure 1 o# SKT-1005-1, the seller's Thernal Perf ern2nce Guarantee vill apply." It was further agreed that the anbient vet bulb tenperature udll be the average :f readings tchan at the centerline of the inlet openings in the vertical valls of the cooling tower, at a distance 2 feet horizentally. fren the external surface of the valls. Addi fonally, to clarify the reccrd, Ebasco stated, and vill
*..=_'_ '_.._ >s- o .! h.*._,_=_"..*.3., ..h._,. .'..e _ e o r e co m._.-- ; _ .
Do Cbstructions to a r low eitner at ne 2nlet or t.ne outlet of the coclic; :cwers.
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- 2. " -h_'_-..=.1.__=1_ ' . ' _ - . . . . ~ ~ . .
A CCnClusion as ".c: TeeChed CCncernin' 5 the Warranty period. Ebascc's positica is :learly understeci., but Zurn has repeatedly pointed cu: that we do not guarantee any of
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our products for nors :han ene year and it was never our intent to prcvida a 1:nger paried c2 warrant; .cn this ccarract. As stated, 1 vill be in teuch with you further cence-__'_;_ '. . _' s __= . = . a .' *. e . #u_
. . ha_. .e._#ew wi*h ou- .
Inanagenent. -
- 3. Con.cecue::ial Tan 22es .
Eb2sce acreed to sucni a contract chante which vill be
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an additicn to Article 16 of the Ebasco/L?iL Supolecentary i c -_ , c . .- - > C ,_ : ._: c_...,. : .1- - u. _. e .,.am s , s .: - ,_
. ____ _ . - _, c. .. . s. . " S e ,_ ,_ e . .
sha ,. not bc rescons;.. .;e ter censecuential danaves.n b t s
..!b
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e e 25-78-1005.18 Ebasco Services . Attentica: R. L. Rey - Proj ect Buyer February 6,1978 . Page 3 .
- 4. Cuality Assurance
- Ebasco stated that Zurn's latest Quality Assurance Manual (Revisica 2, subritted Tcbrucry 2, 1973) andi their Vendor QC Procedures (sub-itted ::avenber 10, 1977) vere deered adequate and that Zurn should proceed with the release of caterial fer f abrication. Zurn agreed to do so and folle.-
their specified QA procedures. Ebasco agreed to telex to Zurn their approval / concents of Zurn's QA P2nual, Revisica 2, by February S,1978. Ebasco agreed that the only vender ite= being furnished by.Zurn under this centract requiring the AS::5 Boiler Ccde Section 3 QA procedures is the distribution piping. The structural s cel being furnished by Zurn under this centract is considered a part of the coolin; teuer building steel and therefore is to be f abricated under the general QA procaccres.
- 5. Nucicar Liability Ebasco agreed to provide the follouing indennification clause as an addendu to Article IS of the Ebasco/LFEL Supple:entary Tert: and Conditions:
" Owner hereby agrees to indennify Seller and its suppliers of any tier and their c O.lov.ees aarainst any liability ~
for datage to any prcperty at the site (including loss of use) resulting frca a cuclear incident, including
. liability for darage caused sy negligence of suppliers of any tier or their employees."
"In the event Owner sells, leases er transfers ownership or operaring rights in this facility to be constructed hereunder , Crner agrees to exert its best efforts to require the Purchaser, Lessee or Transferee to prcvide identical nuclear liability protection to that outlined abcve." .
. As agreed, I will cc . tact you by rail shortly cencerning our acceptance of t:.is revisica. .
o * - - . 9 a u .f
t 25-78-1005.18 ' Ebasco Services
; - Attention: R. L. Roy - Prcj ect Buf er
- I February 6,1978 t Pa *ce 4 ,
t, I
- 6. Federal Reculatien 10CFR21
', Regarding our questions concerning the applicatica of this cooling teuer in dhe arr ng::ent provided by Ebasco in car letters of C.ctober 27, 1977 and J nuary 17, 1978, Ebcsco ,
stated in their letter, LU3-266-1-77, dated Dece:ber 23, 1977, they had adecuately answered Zurn's questions on this =atter. Ebasco reiterated that they had perforced studies for both the Waterford l'ait 3 Preliminary Scfety Analysis Report and the Final Safety Analysis Report, cnd stated that the questions raised by Zurn cust be studied as a =atter of Federal Regulation and were included in these reports. Additicaally, Ebasco stated that Zurn has cc plied with the require cats of 10CTR21 in notifying the: in writing of our ecacerns, and that no further action en Zurn's part is necessary on this ca tt er.
- 7. lOCfR21 Reinbursement of costs te ccmolv Zurn's positica is that following any action or inaction as a result of cc plying with 10CTE21, it is pessible that we 22y becc:e involved in sc e f or: cf litigation, public hearings er ether activities net conte plated
- at the tire ne prepared our fir: price bid for this contract. inere: ore, cecause of such a possibility, ve should be fully reitbursed for all tire and enpenses that we =ight incur on a normal reinbur:cble basis, and additicnally be indernified against any liability that we =ight incur as a result of cc:pliance with 10CFR21.
Ebasco stated that their legal counsel had advised that
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there is no involvenent other th2n reporting to the Nuclear Regulatory Cornission in cceplying with 10CFR21, and thetefore becaus' it is unnacessary, the centract atendment requested by Zurn vill not be =ade. As stated, I will contact you shortly by letter af ter further reviet of this 22tter with our canaga ent.
- 8. Project Delavs While Ebasco denied r; tat they had delayed Zurn in proceedin; vith this centract, they stated they wculd give full
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ZS-78-1035.13 Ebasco Services i Attentica: R. i. Roy - Project Buyer February 6, 1973 , - Page S ' i I consideration to specific docu ented rect.ests and. evaluate -
. them en the basis of the terms cf our contract and where applicable, force cajure.
- 9. F.iscellanecus Prciect Patters '
(a) Ebasco recuested Zurn to submit the required Cooling Tower Perfor ance Curves by the end of Parch,1978. (b) Ebasco requested Zurn to sub=it a schedule of vender shipping dates 'oy February 23, 1978. (c) r.basco vill send Zurn a checklist of docurentation that is to be included in the package to be scat to t'.e field when vender caterial is released for ship:ent. (d)* Ibasco agreed to furnish the structural tee tegether along tha # added plate which supports the Zurn structural s: eel. Previcusiv Ebesco had carked cn Zurn drawing F?-l en 12/15/77 that Zurn should furnisa . . the tee. L'hile we were unable te reselve all open itens at this teeting, I believe that the agree:ents nade were beneficial to the cenduct of the project, and it is hoped that this dialogue vill centinue. s Very truly yours, ZUF3 I:!DZS!F.IES, I: C. Ccoling Tc c: Divisica n/
. s i h.?_f F-, :Ar-I L,Qpf}%,V,V W J
D. f. Sengst .en Assistant General Yanager
\
DJS:rg - cc: E. J. Su =er, Jr. 7
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25-78-1G05.13 Ibasco Services Attentica: R. L. Roy - Project Buyer February 6, 1973
- Page 5 i consideration to specific docu=ented requests and evaluate .
thea en the basis of the terms of cur centract and where applicable, force cajure. .
- 9. Miscellaneous Preiect > Steers '
(a) Ebasco requested Zurn to sub=it the required Cooling Tower Perfornance Curves by the end of Bhrch,1978. , (b) Ebasco requested Zurn to subcit a schedule of vendor shipping dates by February 23, 1978. (c) Ebasco will send Zurn a checklist of docurentation that is to be included in tha package to be sent to the field when vender caterial is released for shiptent. (d)' Ebasco agreed to furnish the structural tee together along the 1 bedded plate waich supports the Zurn structural steel. Previcusly Ebasco hcd carked cn Zurn drawing FP-1 on 12/15/77 that Zurn shoulc' furnish the tee.
'Jhile we were unable te resolve all open itens at this teeting, I oelieve that the agree ents cade were beneficial to the conduct of the project, and it is hcped that this dialogue vill continue. s Very truly yours, ZUP5 INDUSTRIES, INC.
Ceoling Tower Divisica r p s \sp?
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/'mI.%.!lJJ'fri G,V ,V' W
.- : s ., *
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D. f. Sengstt.cen
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Assistant General Manager s DJS: rg - _ cc: E. J. Sut=er, Jr.
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Teoruary 15, 1978 f IJG-271-78
. . .. File:1-P-8 Response Required:2-22-78 l
t Mr D Sengstaken , l Zura Industries . . , , Cooling T: cr Livision - a . i Lincoln Center - 5401 West Kennedy Elvd i Ta:pa, Florida 33623 , j Re:_.LCUIS'ANA Sc.:ER & LICliT- COMPANY - -
.. .' ,iATEFIORJ S ES 'C.;IT ;0;- 3 . . . .
CC!TIFACT 50. NY-403528 M ;ruTES c? 12ETIt:C. EE_.D ON FE3RIMRY 2.1978 .
Dear Mr. Sengstaken:
- g. . .
Attached for your review are the February 2,1978 Meeting F.inutes. Flease sub=it any ce==ents to these Minutes not later than February 22,.1978.
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.Very .truly. yours.,. . .. -.
-l u_-- ou -
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R L Roy Project Euyer . RI.R: c=c b/ A t t a ch=en t , cc: D L Asucil- , bc: R R Sta=piey R L Teal' luc 7
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- L V Maurin .
A E Henderson _ R W McCaf frey D L Lester J Cianci
, ~~'
.' '7 - C J Decareaux R L Roy M I Meyer - C Secane C6/h'
-Fover Production Dept-Nuc (3) -
P V Cvildys T U Schaat: K Craig . T F Cerrets J P Hopkins
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T A Reine D N Calligan Waterford 3 Site (3) . P K Sarathy P V Presankumar W Fadden E L Brundage L S Sas F J Sweeney C M Assini i S Hecker Project Record File
, f ,
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W U LO'JISIA';A P0'IIR S LIGHT CO.'!?A 6 WATERFORD Uii1T I:0.3 i WET C00LI.;0 TO.?ERS P.O. :;0. ;Y '+0 3 3IS S ulje ct : ;;0TES OF IF.E MEETI:;0. HELD AT ESASCO'S OFFICES IN NE'J YORK BETWEEN ZUR3 I:;;USTEIES 4::D EEASCO SER'.' ICES ON FEBR'JARY 5.1973 PRESENT . ZUR:4 IND"STRIES ESASCO SERVICES D Sengstaken L J Sas ( P ar.C Time) R H:Clenthan (Part-Ti=e) S P Hecker
. C M Assini C Seoane R L Rey J P Hopkins -
'- K Craig
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L Skoblar (Part Time) D Galligan (Part Time) Tne purpose of the Meeting was to define and resolve outstanding engineer-ic; and cc :e:cial issues, and to re-ests.blish an expedient shipping schedule. . REETINO ACENDA (As stated by D Sengstaken of Zurn)
- 1. Technical Aspects of the Thercal Perfersance Guarantee
- 2. Nuclear Liacility Issue
- 3. Cons equential Damage S t at mant
- 4. Application of Federal Regulation IOCFR-Part 21
- 5. Cost of Applying Federal Regulation 10CTR-Part 21
- 6. Defining ne Measurement Point of Ancie.nt Wet Sulb Temperature
- 7. Outstanding QA Matters
- 8. Cont ra: Statua
- a. drawings b.. fabrication -
OPENIt:0 STATE::ENIS L J Sas voiced Ebasee's concern that Zurn's negative posture in administer-ing this contract is delaying Ebasco's construction effort. In replying to this statement, D Sengstaken concented that Zurn is st rivi ng vi gorousl;. far cc:pletion of tne contrart, h owe ve. r , the outstanding unresolved issues were preventing them froa proreeding. , Technical Asoects of tne Tacraal ?eforcance Guarantee Erie f di s.us sion ensued regarding point 1 of Zurn letter 25, 73-1025.15 cat u .ianua r y i7, i,70. T.. i s c ute:co ,, u .s .; , t .. t w L a . % ,. r . - . . . . .. ; acalent wet culo te perat ure; and 2) air utstrtaution profije. L
' t .i ]' 'i G
Technical >,s nec t s o f the Th e rmal ?eformance Guarantee (Cont'd) It was acknowledged and agreed by L J Sas and C Seoane that Para-grapo 5.3 Thermal reformance Tasts wouis be amended to read as foiiews: '
"Ferformance suall te ossec on tne c=bient wet bulb te=peratura ceasured in tne inlet chanber leadin; to tne tower." It was noted that
- this state =ent was previously agreed to in correspondence between ; urn and Ebasco.
Continued discussica ensued on a point raised by D Sengstaken.re;2rding-the exact point of a=bient wet bult temperature ceasurement. L J Sas and C Seoane clarified this point by stating..." Ambient wet. bulb te=perature shall be =easured at the center line of the air inlet opening, appro::ixately two feet horiscutally froa the outer wall." It was agreed and acknowledged that this statement would be incorporated into the contract specifiestion for clarification purposes. It was also noted that th re are no obstructions to air flow at the inlet or the outlet of .tne cooling towe rs. Regarding the Air Distribution Profile, D Sengstaken cade re f e renc e to the following paragrapa contained in Zurn's January 17, 1975 ietter:
"The Purchaser agrees that the Seller's Thermal Perfor=ance Guaran-tee shall apply caly if the uniformity air flew distributice t o t r.e
. fill section of each coolin; tower cell is equal to or better than the liaits of Figure 1 of curve No. SKT-1005-1 attached to Zurn Industries, Inc. Air Velocity Profile Evaluation Test ?.e p o r t dated January 19, 1977. A copy of curve SKT-1005-1 is at tached Y.e ret e.
If the coolin; tcwer air flow velocity distribution is less uniform than that indicated in Figure 1 of SKT-LOO 5-1, and the cooling tower p erf e rra nc e does not meet specified guarantees', the Seller will reco=:end cooling tower cocificat ions to the purenaser to i preve the air flov districution pattern. All such codificatiens eculd
. include the addition of air directions 1 vanes, a ddi tional fill
=aterial, rearran;ecent o f fi ~.1 ca t e r i al , etc. 'Jh e n th e fl ow dis-tribution caets tne licits indicated in Figure 1 of 5KT-1005-1, the Seller's Taercal Performance Guarantee will apply."
Further di scussion cent ered on the obligations of both parties in the event tne coolin; tower cust v2 codified due to inproper air flow distribution pat terns. The final agree ent resulting from this discussion is as follows: "if the uni formity air flow distribution to the fill section of each cooling tower cell is equal to-or.better than the li=its of Figure 1 of curve No. SKT-1005-1 and the coolin; tower does not meet the required Thercal ?er f or:ance Guarant ee , tnen all costs for an .- codifications to correct this, including costs for retest.n;, wi:1 be
, for Seller's account. however, if the distribution is not equal to or better tnen 'ha limit < < pac i fiad , than a n v,
. rnver nodi ficat i on :n .eer T" - 11 ? rfer-3nca C u .'. r m t e s 5 and ensts in r r.- r .'s t i n - scall ci- :ar
?urensser's account." * .
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I The next ite= discussed
. ' was OA Matters. . i Outst ndin: CA u-reers
' Opening state = ant; by D 'Calligan and D Sengstaken =ade reference to revisions cade to Zurn QA =anual dated Dece=ber 19, 1977. .. ! .
D Calligan reiterated previous co==ents =ade to this canual: - i
- 1. . contained too cany generalities
- 2. lack of for=al QA depart =ent 3: lack of control over supplier .
D Sengs:aken countered Calligan's state =ent eith the fact that Zurn is striving to train people and qualify their QA prograc. He furthe; added tnere would be a learning curve before Zurn personnel can totally co=e up to speed on QA require =ents. Further discussion continued on the reasons surround;ng the untice.ly delay in qualifying the QA progra= at Zurn's Tampa facility.
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D Sengstaken asserted that Zurn was delayed in =eeting its contractual co==it=ents because of Ebasco's unti=ely and a=biguous responses to various Zurn QA sub-ittals. D Galligsn countered this allegation by stating that it was unfounded based on the chronology of facts. The ..ssential points of D Calli;in's
. position vere:
- 1. Zurn's Koko=o Indiana ra:ility was previously QA qualified by Ebasco. .
- 2. The contract was unilaterally trans ferred by Zurn to its .:a=pa facility in January 1977, and althou;h QA require =ents hava not change d , the Zurn 's Ta=pa pe r scene.1 nave not de=onstrated a clear understanding of the existing QA require =ents.
- 3. Ebasco has greatly exceedad the generally accepted level of
involve =ent in assisting Zurn personnel in developing an
. acceptable QA progra=.
4 Zurn's Ta=pa facility failed to co==unicate with Koko=o for assistance in developing an acceptable QA prrgra=.
- - Ebasco strongly stated that QA celated clai=s for cont ract extras will be rejected.
At the cul=ination of this agenda topic, D Sengstaken sub=itted revision 2 of Zurn' t Q.\ canual for Ebasco's review. D Calligan stated tnat this =anual would be reviewed and returned no later than fearaari ss, .>.'s. 7nG 'i/P lU d . U/
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- Consecuential.Damaze Statement Af te r brief di.scu ssion, it was noted for the record that this issua was infor:Olly a;rved to by Ebasco/L?5L in January 1977. R L Roy submitted a draf t contract supple =ent for Zurn's review. Upon receipt o f" a c c e p t a b le. comments from Zurn, a for=al supplement would be issued, i
Nuclear Liabilitv R L Roy stated tnat it was L?6L's contention that Article 13 Narlear .
' Indemnity and Insurance of the Supplenantary Terms and Conditions acequately protectea curn and its subsuppliers. Further, it is not LP5L policy to deviate fres the wording contained in this Art.iele. However, in a spirit of cooperation, L?~ L would agree to the additional wording
. requested with sore =odification. .
R L Roy presented D Sengstaken with a draft copy af a centract supple-cent which contained the proposed. codifications. D Sengstake.n -
.4 quested a eview period of at least tnree weeks. It was agreed that this period of ti=e was acceptable.
D 5engs"aken centended that the delay in resolving this issue vould
' 'likely result in an increase in cotor pricing which would be for LP&L's account.
R L Roy rejected this, s;ating that Article 18 vas previously accepted by Zurn on the original contract.
- D Sengstaken then claited force =ajeure with respect to Allis-Chalters
- and ciaer =otor aanufacturers. He stated that it was beyoad Zurn's ccatrol to come to terms'on this issue without the assistance cf Ebasco/LP5L. Therefore, they have incurred costs that are beyond their control.
R L Ro,r acknowled;ed that a feree cajeure argument may have = erit, but that the last sentence of Article 17-Delav of the Supplesentary T*r:s
, and Conditicas prohibits constary relief tot delays beyond the Sellar's reasonable control. .
Federal Regulation 10CFR-2 __ ._ D Sengstaken apologized for adding to the confusion with respect to Zurn's concerns over 10CFR2l. In order to clarify his concerns, he restated thes in two parts:
^1. That Zuen had a conetary.e.xposure in the event they had to attend hearings or have counsel in scae litigation; and
- 2. That Zurn could not be certain that 'he application of Zurn's
, equip ent for Ebaseo ' = desi gn was a equate.
Ebsm o raiac: ad bot h of tnese enneerns en :ne easis ti .t our o-sten w.. s presented to and accepred by ta= JRC tnrou;r the PSAR, and tnat the potential for additional costs resulting frea this regulation 7hL l. [ /
%! Y e
Federal Eetulation ICCFR-2 (Cont'd) was so re=ot e that they did not cerit consideration ac tnis ti e. D Seng.taken a; reed tant further discussion veua d be conducted [ith Zurn M"nagement so as to detar=ine their final positica en this =:tter.
~da r ". a r e Guarantee The =ajor point of contention was tne fi fteen year hardware guarantee stated in Section 10, Cuar:nta= Farfer,ance, subsectica 10.07.,
D 9engstaken stated that it was. neve r Zurn's intent to accept a fiJteen year warranty. In support of this he referred to agreements cade with Mr Lindsey durin; a January 1977 =eeting. R L Roy took strong issue with that statement and referred Sengstaken to the =eeting cinutes which are silent on ene issue of Hardware Guarantees. D Sengstaken insisted that it was never Zurn's policy to guarantee. hardware for more than ene year. Moreover, no cenpany, to his knnuladge, providad a fif teen year hardware guaranter. R L Roy and C Seoane countered this by stating that Cer_=ic Ceoling Tower Coapany, a Zurn eenpetitor, proposed a forty (40) yez. guarantee to Ebasco/LPSL. Furthermore, tne fi f teen year guarantee was part of
'. the basis for awarding this coolin; tower contract. Also, it was pointed out tnat 1) Zurn's original proposal stated a fif teen year warranty and in fact tne fif teen years was a negotiated subs titute for tne forty years requested in the incuiry specification; and
- 2) T Vicary's proposal dated Maren 4, 1977 took no ex:eptica to the fifteen year warranty. An exacination of tne files revealed nn cor-respondence prior to July 25, 1977 to substantiate this :osition, but to the contrary, the files clearly show that tnis issue was not raised until:T Vicary's letter dated July, 26, 1977 which returned executed ccpies of Supplenent No. 2.
D Sengstaken countered this position by stating:
- 1. At a January 6,1977 Zurn/Ebasco/LPSL =aeting, -Zura expressed their exception to the fi f teen year warranty and in effect came to a "ceeting of tae =inds". He further stated that Zurn considered this =eeting to be a co=plete renegotiation of the entire contract, and
- 2. Tne last paragraph of a subsequent letter fron Zurn issued January 12, 1977, substantiates Zurn's clain.
C Seoane and R L Roy refuted D Sengst aken's position with tha f olleving: I. Tt . ,
<;s ra 5.v i i- -tr.--A---e 2 th. Jan..ery 6, 1977 naeti.; and L. a . . . + fift. . ; .:. .tr' -' - - - - * - m n 't dic nsce:.
Moreover, the Meeting Minutes support this position. nn.
'/ ',)C a Vd. L,
f
. v V Hardwara Cuarantee (Cont'd) -
I 2. Tne January 12, 1977 Zurn letter does not address tais iesue. T!.e last para;r2ph at this letter states the following: f.
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! "In cur ceeting we agreed that while you.would look to Zurn to work with you in solving the proble=s of inlet and outlet restrictions, that you wr.uld look to Zurn to guarantee the perfor ance of the towers, but under no i circucstances would Zurn be responsible for conse ;uential -
dacages of any kind. Zurn's liability wo,uld be l'i=ited to these pro.isions outlined in your Supplementary Ter=s and Conditions." . E L Roy pointed out that while this paragraph does discuss the issue of consequential dacages, it does not address a fi f teen-year hardware warranty which is an entirely separate issue. D Sengstaken countered this argument by e:phasizing the last
' sentence of this paragraph, to which C M Assini responded that this state =e::t does not apoly and referred Zurn to Articia 1, Interoretation of The Supplementary Terms and Conditions vnich states tnat in case of any conflict or inconsistency, the contract spetification shall prevail over the Supple:entary Terms and Cenditions.
It was suggested by R L Roy and C M Assini that Zurn review the
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facts and discuss its position further with tcp =anagement in order to avoid potential liabilities whien could result if Zurn chose to repudiate its hardware guarantee obligations. Contract Status D Sengstaken's opening state =ent contended tnat Zurn was unabl.? to ceet the contract delivery requirement of no later than Dece:ber 31,1977 due delays in dravia; review. Reference was cada to Zurn letter dated Dece=ber 15, 1977,in ord - to substantiate his position. C Seoane responded that such statements were totally unjustified. An exacination of the chronolcgy en drawings and technical data sub=ittals substantiates tnat Ebasro was p ro.:p t in meeting its concittents in this area. It was pointed out tnat Zurn's Dece:ber 15, 1977 letter, unich listed the chronology of submittals, verifies Ebasco's position. C Seoane further stated that Zurn was late in sub itting drawings and
. . dat z--in order to support dativeiies in Dece ber 1977. Reference was
=ade .to Ebasco letter Ul3-12S2-77 dated June 30, 1977 in whien Ebasen inforced Zura Lnat taey were not meetin; taeir cannitments in dra . ng subcittals and tnat tais delay was jeopardizing the Cons ~ruction schedule.
*) : . ..; t .. c .. . . . d . .. . . . --s . . . . --r. : ac....-- . :,.... e.. ~ .
by Zura ca cra in; su u.:i t t a i s . l q V t_ t .V i
Contract Status (Cont'd)
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- 7. It was further noted that:
- 1) Zurn's QA ::anual Rev 2, submitted on February 2, 1973 and
. 2) Zurn's Vendor QC Procedures submitted en :Jove:ter 10, 1977 were acceptable subject to comments to be submitted by D Galligan. Zurn should proceed a.d release their sub-suppliers for fabrication. D Sengstaken acknculed;*d this
- . . state:ent.
. I
- 8. D Sengstaken consitted to submit a fira delivery, schedule' by
. February 23, 1973.
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Contract St;tus (Cont'd) R L Roy stated tnat the facts do not suppert Zurn's claim fc.- addad costs. , The next topie discussed was a.peint raised by D Sengstaken regard-ing the applicability of AS:E Boiler Code Section III to the struc-tural steel requirecent s for this contract. C Seoane pointed out that the Code does .. apply to the s t ruc t u ral
- steel. The correct interpretation applies the Code only to the di st r. iou tion piping. The structural steel is considered a part of the cooling tower building steel. General QA procedures snall apply. .
The next topie discussed was performance curves which Zurn has not submitted to date. D Sengstaken concented that tais data would be ' subsitted to Ebasco by ' ne end of P. arch 1978. Other points discussed were:
- 1. Unpriced copies of all subvendor orders will be required.
- 2. Ebssee will . and Zurn a checklist of required QA documentation no lat,er than March 15, 1978.
Zurn cust as sure tr.at proper QA documentation will be included in all subsupplier shipments.
- 3. Seiscie Reports submitted by Zurn in aid-December 1977 will be returned by Ebasco no later than February 15, 1973. It was noted by C Seoane that Zurn's reports were tardy and that Zurn
. -should have realised these reports would be required duch ear-
- lier to support a Dece ber 1977 de:ivery.
- 4. Structural Tee welding attachcants for the e= bedded plates will be provided by Ebasco.
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- 5. D Sengs taken questioned whether missile grading, plat for=s and ,
~~
stairs would be part of the overall cooling tower arrangement. C Seoane pointed out that 1) the missile grading issue was re-solved per Ebasco/Zurn meeting of January 27, 1977, and 2) plat forms and stairs are located in accordance with Zern craw-ing R-6, revision 0 dated 10-7-77. a Sengstaken stated tnat he did not have a copy of the drawings which eliminated nissii= grading, stairs and pictforms, D Sengstaken was given an addi-
.tional copy of these drawings.
- 6. J F.opkins infor:ed D Sen;staken that Supplement No. I to the contract was never signed by Zurn. D Sengstaken advised that he woul d look into this =atter. .
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