ML19317H521

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Advises That NRC Has Completed Investigation of Collection, Evaluation & Reporting of Info Available to B&W Before TMI-2 Accident.B&W Failed to Report Safety Info in Timely Manner. Notices of Noncompliance & Civil Penalties Encl.W/O Encl
ML19317H521
Person / Time
Site: Crane 
Issue date: 04/10/1980
From: Stello V
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE)
To: Macmillan J
BABCOCK & WILCOX CO.
References
REF-QA-99900400 NUDOCS 8006120517
Download: ML19317H521 (3)


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i, APR 101900 The Babcock & Wilcox Company Nuclear Power Generation Division ATTN: Mr. J. H. MacMillan Vice President.

Post Office Box 1260.J ' '

Lynchburg, Virginia.24505

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. Gentlemen:

We 'have completed our investigations into the matters related to the collection, N

evaluation, and reporting of knowledge and information available to B&W before.

the TMI-2 accident involving factors that may have contributed to the accident.

We have also reviewed the relevant information generated by the President's Commission on Three Mile Islan~d and NRC Special Inquiry Group.

On the basis of our review, we have concluded that 8&W did not have an effective system for collection, review and evaluation, and reporting of important safety informa-tion.

These matters bertainly were important to safety based on our present insights derived from the TMI-2 accident and should have been disseminated to NRC licensees and reported to the NRC in accordance with 10 CFR Part 21.. It distresses us to. note that B&W technical personnel stated that some of these matters should not be reported to NRC licensees or to the NRC because of fear of ove reaction on the part of NRC. We will. examine further the question of withholding of information from the NRC.

As indicated above, your organization failed to collect, evaluate and report-this safety information in a timely manner so that action could have been taken to avoid or~ reduce the effects of the TMI-2 accident. The provisions of 10 CFR 21 require evaluation and reporting of significant safety information.

In our view, the implement'ation of your existing procedures and the attitudes of your senior technical personnel did not contribute to accomplishing that

, end.

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- It is imp 6rtant for all firms, such as B&W, subject to Part 21 to be sensitive to the reporting threshold set forth in the regulations.

This stems not only from the need to promptly communicate important safety matters to the Commission and to affected facilities but also from the need not to report matters lacking genuine safety significance. Obviously, it would be counterproductive to dilute genuine safety matters with matters insigtificant to safety. We recognize the need to exercise discrimination to avoid unwarranted reporting, but we ao not consider that the instances cited in Appendix A to this letter could GERTIFIED MAIL THIS 00CllMENT CONTAINS RETURN RECEIPT REQUESTED y

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The. Babcock & Wilcox Company APR 101980 reasonably have been considered insignificant.

As can be clearly seen in this case we are not asking for unevaluated suspicions that an item is a safety matter.

In this case the firm had over a year to react to, to evaluate, and to report safety concerns brought forth by key technical personnel.

We believe that you must provide assurance that you have developed a system for the timely and effective collection, evaluation, and dissemination of significant safety information.

This system must ensure the proper under-standing and handling of all requirements in NRC regulations associated with the reporting of matters affecting safe operation of nuclear power plants to the NRC.

Based on '.he results of the NRC investigations conducted on May 29, and November 6-8, 1979 (copies of both reports are enclosed), and review of the official transcripts of sworn testimony before the President's Commission on the Acc' dent at Three Mile Island (copy of Investigation Report dated September 18, 1979 enclosed), it appears that certain of your activities were not conducted in full compliance with NRC requirements as set forth in the Notice of Noncompliance enclosed herewith as Appendix A to this letter.

You are required to respond to the Notice of Noncompliance and in preparing your response you should follow the instructions in Appendices A and B.

As indicated in Appendix B, we intend to impose civil penalties in the cumulative amount of One Hundred Thousand Dollars for the items of noncompliance.

As indicated in Appendix A to this letter, the noncompliance is considered to be continuing, and the civil penalty is to be assessed on a daily basis.

December 4, 1978, is considered to be the starting date for the purpose of calculating the civil penalty because it is our judgment that, at least by that date, B&W had in its possession all of the information that should have been collated, evaluated and reported.

On that date an extended conference call took' place with representatives of TVA to discuss B&W's analysis of the small break accident.

Furthermore, we believe that that date provides a very generous period of time for B&W to have analyzed and reported on these matters.

In accordance with Section 2.790 of the NRC's " Rules of Practice," Part 2, Title 10, Code of Federal Regulations, a copy of this letter and the enclosures will be placed in the NRC's Public Document Room.

Sincerely Original signed by '

Victor Stello Victor Stello, Jr.

Director Office of Inspection and Enforcement

Enclosures:

(See next page)

WPU:SM:0M X005:IE X0CS:IE ACI::E ELD XCOS:IE 00:IE 0:IE 4/7/80 TWBrockett WWard HDThornburg JMurray DThompson RCeYoung VStello Job H 4/ /80 4/ /80

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O APR 101980 l

The Babcock & Wilcox. Company :

Enclosures:

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1.

Appendix A, Notice of Noncompliance

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2.

Appendix B, Notice of Proposed 4

Imposition of Civil Penalties i

3.

Investigation Report dated June 26, 1979 4.

Investigation Report dated January 24, 1980 i

S.

Investigation Report dated September 18, 1979 l

Distribution:

POR NSIC LPDR TIC State of Virginia

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ACRS (3)

SECY V. Stello, IE R. DeYoung, IE

- CA (3)

F. Ingram, PA J,.P. Murray, ELD J. Lieberman, ELD J. Crooks, OMPA J. J. Cummings, OIA H. Thornburg, IE J. O'Reilly, RII IE Files Central Files Civil Penalty Book CON X005 ReadingFile EDO Reading File IE Reading File H. Denton, NRR (3)

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