ML19332C638

Final Response to FOIA Request for Documents.App B Documents Encl & Also Available in Pdr.App C Document Totally Withheld (Ref FOIA Exemption 5)

ML19332C638
Person / Time
Issue date:	11/13/1989
From:	Grimsley D NRC OFFICE OF ADMINISTRATION (ADM)
To:	Mcgrath M BARNES, RICHARDSON & COLBURN
Shared Package
ML19332C639	List: ML19332C638 ML19332C651 ML19332C668
References
FOIA-89-334, FOIA-89-335, FOIA-89-336, FOIA-89-337 NUDOCS 8911280375
Download: ML19332C638 (4)

Text

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$0/2/ ?L PART't.- AGENCY RECORDS hElEASE6 OR NOT LOCATED ISee checAed boxes) f No agency records subsect to the request have been located.

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No add 4tional agency records subpect to the request have been located.

Requested recorde are availabie through another punc dest 6bution program. See Comments Section.

Agency records subsect to the request that are identifed on Appendiatesi are already available for punc hopection and copymg m the NRC Pubhc Document Room 2t20 L Street. N W., WasNngton. DC 20555 Agency records subr ct tc the request that are identifed on Appendiales) are bemg made available for pubhc inspectiori and copymg m the e

f NRC Pubhc Document Room, 2t20 L Street. N.W., WanNngton. DC, m a folder under tNs FOIA numter and requester name.

The nonproprieterr version of the proposaltsi that you egreed to accept in a tenophone conversatiosi with a member of my staff is now being made availabic for public inspection and copymg at the NRC Pu%c Document Room 2t20 L Street. N W., Washmgton. DC, m a folder undei this FOIA number and requester name.

Agency records subsect to the request that are identifed on Appendiales) may be enspected and copied at the NRC Local Pu%c Doci: ment Room identifed in the Comments Section, Enclosed is mformation on hsw you may obtem access to and the charges for copymg records placed in the NRC Pubhc Document Room. 2120 L Street, N W.,

WasNngton, DC.

Agency records subsect to the request are enclosed.

Records subpoct to the request have been referred to another Federal agencyles} for review and direct response to you.

I-You will be billed by the NRC for fees totaling 8 In view of NRC's response to tNs request. no fu ther action is being taken on appeal letter dated No.

r PART 11. A-lNFORMATION WITHHELD FROM PUBLIC DISCLOSURE Corteen information in the requested records is bemg wnhheid from pubke disclosure pursuant to the esemptions described in and for the reasons stated m Part 11.

sections B. C, arv1 D. Any released portions of the documents for which onty part of the record is being withheld are being made available for pubhc mspection and copymg m the NRC Pubhc Document Room. 2t20 L Street N W., WasNngton, DC.m a folder under tNs FOlA number and requester name 5

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TURE, DIRECTOR, IVISI F FREEDOM OF INFORMATION AND PU8UCATIONS SERVICES I

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ev Am 2d FREEDOM OF INFORMATION ACT RESPONSE roiA NuueEn6 - FOlA -M-AM - #9 - DATE: NOV i 3 toen > - ';

PANT s.e-APPUCAeLE EXEMPTIONS J.5 7

Records subject t) the request that are described on the enclo.ed Appendiale.).

d___ ore being withheld in their enter;ty or irt part under the es.inpison. and vor the re..on.

i iorth b.io. pur.uent to s u.s.c. ssribi.nd to CFR s.i7<.i i NRc Resuisioon..

e t. The withheld informe n is properly cleselfed pursuent to Esecutive Order (EXEMPTION 1)

2. The withheld information relates solely to the internal personiset ruses and procedures of NRC. (EXEMPTION 2)

3. The withheld information 6e specificat esempted from public disclosure by statute indcated: (EXEMPTION 3) i Sechons 141 146 of the Atomic Energy Act wNch proNtuts the desclosure of Restncted Data or Formerly Restected Data 142 U S.C. 216121661.

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Section 147 of the Atomic Energy Act wNch proNbits the disclosure of Unclassited Safeguards informeten 142 U.S C. 2167L

4. The withheid mformaten e e trade secret or commercial or Imancial informaten that is bemg withheld for the reason (s) mdicated: iEXEMPTION 4)

The information is considered to be confidential business (propnetaryl information.

The information is considered to be propretary information pursuant to 10 CFR 2.7904dH11.

The informaten was submitted and received in confidence pursuent to 10 CFR 2.790tdH2L Y

5. The withheld mformatron consists of eteragency or mtraegency records that are not available through discovery dunng htigsten (EXEMPTION 65 Applicable Privilege:

y Dehberative Process: Disclosure of predecisional information would tend to mhibit the open and frank enchange of ideas essentiel to the dehberative process.

d Where records are withheld in their entirety. the f acts are mentrcably intertwmed with the predecisenal mforrnation. There also are no reasonably segregable f actual A

portions because the release of the facts would permit an mdirect inquiry mio the predecessmal process of the agency.

Attomey work product pnvilege (Documents prepared by an attomey in contemplation of heigation i Attorney -Client privilege (Confidential communicatens between an attomey and Ns he' Chent )

6. The withheid mforinaten is esempted from pubhc disclosuee because its disclosure would result in e clearly unwarranted evasion of personal anvecy. tEXEMPTION 66

7. The withhe6d informaten consists of records compdad for law enforcement purposes and is bemg withheld for the reasontal indicated (EXEMPTION 7)

Disclosure could reasonably te espected to mterfere with an enforcement proceedeg because it could reveal the scope, direction. and focus of en.

forcement efforts. and thus could possibly allow them to tshe acten to sNeid potential wrongdoing or a velation of NRC requirements from evestigators.

EXEMPTION 7 IAlt Disclosure would constitute an unwarranted invasion of personal pnvecy IEXEMPTION 7tCH The mformation consists of names of mdividuals and other information t%e disclosure of which could reasonably be espected to revealidensties of confidential sources (EXEMPTION 7 (DH OTHER PART 11. C-DENYING OFFICIALS Pursuant to'10 CFR 9 25(bl andeor 9 25 tc) of the U S Nuclear Regulatory Commission regulatens. it has been determined that the information withheld is esempt from production or disclosure. and that its production or disclosure is contrary to the pubhc mterest The persons responsible for the denial are those officiais identiled below as denying officials and the Director. Divisen of Freedom of Inf ormation and Publicatens Services Offece of Admmistration and Resources Management. for any deniais that may be appered to the Esecutive Dieector for Operations IEDOI DENYING OFFICIAL TITLE / OFFICE RECORDS DENIED APPELLATE OFFICIAL A '

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PART N. D-APPEAL RIGHTS The denial by each denying offcialidentified in Part II.C may be appealed to the Appellate Offcialidentifed in that section. Any such appeal must be in writmg and must be made witNn 30 days of receipt of tNs response. Appeale must be addressed as appropnate to tha Executive Director for Operations or to the Secretary of the Commission, U.S. Nuclear Regulatory Commission, WasNngton, DC 20555. and should clearfy state on the envelope end in the letter that it is an " Appeal from en initiat FOtA Decisson."

NRC FIRM 484 (Port 2)

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August 4, 1989 Ac'!?;.$$.~5*,.

Attention:

Freedom of Information Act Request-IREEDOM 0F INFORMATI0E 4

U.S.

NUCLEAR REGULATORY COMMISSION ACT REQC' Washington, D.C.

20555 S ctd F H f

Dear Sir:

This is a request under the Freedom of Information Act as amended--(5 U.S.C. 9'552).

I-request-a copy of the source materials,

reports, memoranda, research, orders,_ opinions, etc., which were used as the basis of testimony before Congress regarding proposed-legislation affecting imported industrial fasteners.

To avoid -any possible misunderstanding of. what is being requested I enclose an excerpt of the Congressional Hearing at which Mr.

Ed

Baker, III, Vendor Inspection

Branch, Nuclear Regulatory.

Commission, testified about imported industrial fastaners.'

The full text of the' testimony can be found in Document Serial No. 100-175 pages 270-365.

The FOIA also provides that if only portions of a file are exempt from release, the remainder must be released.

I therefore request that I be provided with all non-exempt portions which are reasonably segregable.

I, of course, reserve my right to appeal the withholding or deletion of any information.

I - am prepared to pay reasonable costs for locating the requested file and reproducing it.

If the fees will exceed

$100.00, please inform me of the charges before you fill my request.

In such event, I request permission to review the records which are responsive to this request and to select those 1

which I want copied.

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l Attentio,n: -Freedom of Information Act-Request August 4,'1989

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If you have any question regarding. this request, please telephone me at the above number.

-As provided in the Freedom of Information Act,'I will expect to receive a reply within ten working days.

Sincerely, N[

Matthew T. McGrath Enclosure

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COUNTERFEIT METAL FASTENERS m

(Part 2)

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HOUSE OF REPRESENTATIVES

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ONE HUSDilEDTil CONGRESS 0.

SECOND SESSION j

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MAY 9 AND JUNE 16. 1988

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' U"ww-n.,us emtion, ti t mes. tion win be sneerted in :

+ composed of Mr. Victor Stello, Executive Director of Operctions, the record at the e repriate place,.

i U.S. Nuclear Regutztery Commission, who is accompanied by Mr.

Mr. Srsuo. Than you, Mr. Chairman.

subcomm,cre sware, members of the NRC Staff have. met 'with the As you Brian K. Grimes, Acting Director, Divi; ion of Reactor In:pection

and Se

Mr. Ed Baker, III, Vendor Inspection Branch, ittee staff on a number of occasions to review NRC data f Office of uclear Reactor lation

Mr. E. William Brach, Chief, and activities and have provided prehmmary licensee fastener test :

L Vendor I ion Branch -

ice of Nuclear Reactor Regulation; result data to the subcommittee staff. Additionally, the NRC is fol-I'*i"#. closely the subcom terfeit issue m other U.S.,mittee a review of fasteners and a coun-

. and Mr. W iam B. Hutchison, Office of Investigations.

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Gentlemen, the committee thanks you for being with as.

mdustries for its potential relation to the Did,1 miss you, M. Conway ou have my apologies. We will nu ear ry T h.

I Jame

. Conway, and I am with the Vendor magnitude of the fastener conformance problem in the nuclear in-g,,'

dustry. As vendors are identified who may have deliberatel sup.

I M Discau nk you for being with us, Mr. Conway.

plied counterfeit, substandartl fasteners to the nuclear i ustry, Gentlemen the committee, as you know, receives all of its test,

the NRC's Office of Investigations will vigorously pursue each case for an ap riate civil enforcement and/or civil prosecution

i

i. mon { under oath. Do any of you object to appearing here under through e

partment of Justice. Our Office of Investigations i

cath.

Chome of no el has coortlinated extensively with Federal law enforcement agencies -

I' (cht.th your appearance here today. Do any of you desire to be on the fastener issue durire the past year.

, t is 7"8 sight to be advised by counsel in connec-During the past few yearn, NRC has performed numerous inspec-tion wi tions of fastener manufacturers and supphers. Genera:ly the m-4 represented by counsel or advised by counsel during your appear-7

ance here today?

problems identified at nuclear power p However, NRC's at-tention on fasteners was heightened in 1986 when the Industrial

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orus of noe*l

r. Direcau Gentlemen, for your. format. ion, to m7,rm you 7 Fastener Institute informed the NRC of the existence of a counter-in feit market for fasteners. That is, the IFI reported SAE grade 8.2 1

your righta and the limitatsons on the power of the committee, copies of the rules of the subcommittee, rules of the committee and bolta were marked as grade 8.

gg.R.hWRThe N C issued Info mation Notice No. 84-25 and a su ement

,i rules cf the House of Representatives relative to your appearance M hM MM M hM a

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y are before you m the red and the bound books at the commit-ment, Particularly !asteners," in 1986 to alert NRC licensees of po.

i l. tee table.

Gentlemen, if you have, to objection to being sworn, if you wigg tentially significant roblems related to the inspection of material including fasteners.

e purpose of this information was to prevent l please rise and rise r right hand.

the use of incorrect or defective material, and especially to alert' itnessen sworn.

r. Diwcuu. Gentlemen, consider yourselves under oath. The the licensees of the possible existence of counterfeit bolts.

l The NRC had previously initiated a generic issue review, GI-29, I Chrir thanks you for your presence tolay and for your assistance Bolting Degradation or Failure in Nuclear Power Plants, which ad-i to the committee.

Mr. Stello, do you have a prepared statement.,

dresses the broader fasterier.related issues ofjoint design, material selection, fabrication, installation, inspection and testing of fasten -

Mr. Strun. Yes, I do, Mr. Chairman.

ers.

Mr. Dunctu.Then you are recognized to give it.

After being notified by IFI of the counterfeit fastener issue and r

Information ce 86 25 he NR an a m

TESTIMONY OF VICIVR STELLO, EXECUTIVE DIRECTOR FOR OP-NIED BY BRIAN R. GRIMES, ACTING DIRECTOR, DIVISION OF at licensee facTties and fastener manufacturers and suppliers. To ERATIONS, NUCLEAR REGULATORY COMMISSION, ACCOMPA.

1 date, we have sampled and tested a total of 137 fasteners from 16 l

REACTOR INSPECTION AND SAFEGUARDS, OFFICE OF NUCLE-nuclear power plants. This total includes 28-and that is a corree-AR REACIDR REGULATION: AND ED BAKER ll! AND JIM tion from my submitted testimony, which said 31-fasteners select-CONWAY, VENDOR INSPECf!ON BRANCH j

ed by the subcommittee staff at Calvert Clifts and Perry Nuclear Mr. Sntuo. Thank you. Mr. Chairman and members of the sub.

Power Plants. The NRC testing is independent of the licensee *s committee, on behalf of the U.S. Nuclear ulatory Commission, I testing of fasteners in response to NRC Bulletin 87-02, which I will think ou for this portunity to meet wit you today to discuss discuss shortly.

l ~ ctions that the NR is taking to address our concerns about the The NRC test resulta show that 27 of the 137 fasteners failed to a

i conformance of fasteners used in the Nuclear Industry.

meet the material specification for which the, fasteners were identi-

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'I h ve attached to my red testimony responses to the spe.

I M This is a nonconformance rate of a imately 20 percent. It cifie questions contained in t subcommittee *s letter of invitation.

should be noted that the NRC sample se ection process was biased l

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August 4, 1989 FREEDOM OF INFORMATIOC Attention:

Freedom of Information Act Request ACT REQUEST 1

U.S.

NUCLEAR REGULATORY COMMISSION Washington, D.C.

20555

~87-dd[ '

C2.aeYJ-/-ty i

Dear Sir:

This-is a request under the Freedom of Information-- Act' as amended (5 U.S.C. $ 552).

I request ~ a copy of the source materials, ' reports,.

memoranda, research, orders, opinions, etc., which were used as-the basis of testimony. before Congress regarding. proposed legislation affecting imported industrial fasteners.

[..

To avoid any possible misunderstanding of what. is being requested I enclose ' an excerpt of the -Congressional Hearing at which Mr.

Jim

Conway, Vendor Inspection

Branch, Nuclear Regulatory Commission, testified about imported industrial

-fasteners.

The full-text of the testimony can be found in-Document Serial-No. 100-175 pages 270-365.

The < FOIA also provides that if only portions of a file are-exempt from release, the remainder must be released.

I therefore request that I be provided with all non-exempt portions which are reasonably segregable.

I, of course, reserve my' right to appeal the withholding or deletion of any information.

I am prepared to pay reasonable costs for locating the requested file and reproducing it.

If the fees will exceed

$100.00, please inform me of the charges before you fill my request.

In such event, I request permission to review the records which are responsive to this request and to select those which I want copied.

-[ W Gd'O OO 2~

ll

Attention:

Freedom-of Information-Act Request

(

August 4, 1989 r

Page 2 If ' you have -any question regarding this request, please telephone me at the above number.

As provided in the Freedom of Information Act, I will expect to receive a reply within ten working-days, sincerely, f$lkb'M{]k Matthew T. McGrath

-Enclosure l

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OVERSIGilT AND INVESTIGATIONS OF THE L

C03DIITTEE ON ENERGY AND C03DIERCE o

HOUSE OF REPRESENTATIVES 1

ONE HUNDREDTH CONGRESS SECOND SESSION

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MAY 9 AND JUNE Iti.193S Serial No.- 100-175 1

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Printed for the use of the Committee on Energy and Commerce l

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1-V 5. GOVERNMENT FRINTING OFFICE

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WASHINGTON : 1988

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i ter ale bs the Surerintesutent of Dnments Concessional Seles oil +

O S Goserennent Priniing (MLv n4,hington. DC pier.'

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a ne criair cnnounces tint our stret group of witnemen in a panies wir. Dmuscu Waiticut objection, that addition will be inserted in 1 composed of Mr. Victor Stello, Executiva Director cf Operation 2, the record ct the cppropriate place.

.U.S. Nuclear Regu11 tory Commission, who is accompanied by Mr.

Mr. Srauo. hnk you, Mr. Chairman.

Brian K. Grimes, ' Acting Director, Divi: ion of Reactor Inspection.

As you,cre cw2re, members of the NRC Staff have met with the and Safeguards: Mr. Ed Bak:r, III, Vendor In:pection Brench, subcommittee staff on a number of occasions to review NRC data Office of Nuclear Reactor Regulation; Mr. E. William Brach, Chief, and activities and have provided preliminary licensee fastener test '

Vendor Inspection Branch, OfTice of Nuclear Reactor Regulation:

result data to the subcommittee staff. Additionally, the NRC is fol- -

and Mr. William B. Hutchison, Office of Investigations.

Iowmg closely the subcommittee's review of fasteners end a coun-Gentlemen, the committee thanks you for being with us.

terfeit issue m other U.S. industries for its potential relation to the Did I mies you, Mr. Conway? You have my apologies. We will nuclear mdustry.

recognise you to introduce yourself.

The NRC has been aggressive in trying to identify the scope and -

Mr. CoNWAY. I am James T. Conway, and I am with the Vendor magnitude of the fastener conformance A= in the nuclear in-Inspection Branch also.

dustry. As vendors are identified who may have deliberatel sup.

Mr. Dinosu Thank you for being with us. Mr. Conway.

' plied counterfeit, substandard fasteners to the nuclear infustry Gentlemen, the committee, as you know, receives all of its testi.

the NRC's Office of Investigations will vigorously pursue each case mony under oath. Do any of you object to appearing here under for an appro ate civil enforcement and/or civil prosecution i

cath?

through the rtment of Justice. Our Office of Investigations ~

(Chorus of noes.}

has coordinated extensively with Federal law enforcement agencies Mr. Discru_ Very well.

on the fastener issue during the past year.

I Gentlemen, it is your right to be advised by counsel in connec.

During the past few years, NRC has fm...d numerous inspec.

n j

tion with your appearance here today. Do any of you desire to be tions of fastener manufacturers and suppliers. Generally the in-represented by counsel or advised by counsel during your appear, spections have haen performed in response to specific fastener pmb tent,lems identified et nuclear power plants. However, NRC's at-i ence here today?

[ Chorus of noes.]

ion on fasteners was htened in 1986 when the Industrial Mr. Dincau Gentlemen, for your information, to inform you of Fastener Institute informed t NRC of the existence of a counter- '

l your rights and the limitations on the power of the committee, feit market for fasteners. That is, the IFI reported SAE grade 8.2 copies of the rules of the subcommittee, rules of the committee and bolta were marked as grade 8.

The N i

entitled,RC,ssued Information Notice No. 84-25 and a o rulee of the House of Representatives relative to your appearance lement I

Traceability and Material Control of Material an tod:y are before you in the red and the bound books at the commit-ment Particularly Fasteners," in 19F to alert NRC licensees of po.

tee tsble.

Gentlemen, if you have to objection to being sworn, if you will tentially significant problems related to the inspection of material, I

i I

meloding fasteners. The rpnee of this information was to prevent.

please rise and rise r right hand.

l (Witnesses sworn.

use of incomet or ective material, and especially to alert Mr. Dinosu_ Gentlemen, consider yourselves under oath. The the licensees of the possible existence of counterfeit bolts..

Chair thanks you for your presence today and for your assistance The NRC had previously miti,ated a generic issue review GI-29, to the committee.

ng Degradation or Failure in Nuclear Power Plants, which ad-

~

dmen the bmedei fastener.re, lated issues of joint design, material Mr. Stello, do you have a prepared statement?

l Mr. Staus. Yes, I do, Mr. Chairman.

selection, fabrication, metallation, mopection and testing of festen-

{

Mr. DiNotu. Then you are recognized to give it

'"N beim MM h M d h mWt Th h W TESTIMONY OF VICTOR STELIA. EXECUTIVE DIRECTOR FOR OP.

efter issuing Information Notice 86-25, the NRC began a sampling and testing pmgr,am of fasteners as part of inspections imfw..a.

ERATIONS. NUCLEAR REGULATORY COMMISSION, ACCOMPA-jt licensee facilitsee and fastener manufacturers and suppliers. To i

NIED BY BRIAN K. GRIMES ACTING DIRECTOR, DIVISION OF I

• • have 88mpled and tested a total of 137 fasteners from 16 '

I REACTOR INSPECTION AND SAFEGUARDS, OFFICE OF NUCLE-AR REACIUR REGULATION: AND ED BAKER III AND JIM n c **r power planta. This total includes 28-and that is a corree-tion from my submitted testimony, which said 31-fastenere select-4 l

CONWAY, VENDOR INSPECTION BRANCli t

ed by the subcommittee staff at Calvert Cliffs and Perry Nuclear i

Mr. Snuo. Thank you. Mr. Chairman and members of the sub.

Power Plants. The NRC testing is ir4.. Ant of the licenece's -

l committee, on behalf of the U.S. Nuclear Regulatory Commission. I testing of fasteners in response to NRC Bulletin 87-02, which I will thank you for this opportunity to meet with you today to discuss discuss shortly.

cetions that the NRC is taking to address our concerns about the The NRC test results show that 27 of the 137 fasteners failed to confornience of fasteners used $n the Nuclear Industry.

meet the material specification for which the fasteners were identi-2 I have attached to my prepared testimony responses to the spe.

fled. This is a nonconformance rate of a imately 20 percent. It cific questibne contained in the subcommittee *s letter of invitation.

should be noted that the NRC enmple se ion praeses was biased

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• August 4, 1989 fkrA,7ta % '

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Attention:

Freedom of Information Act Request U.S. NUCLEAR REGULATORY COMMISSION

'I Washington, D.C.

20555 l

Dear Sir:

j This is a' request under-the Freedom of Information Act as amended (5-U.S.C. 5 552).

I : request a

copy of the source materials,

reports,

-memoranda, research, orders, opinions, etc., which were used as-thel basis.of testimony before Congress regarding proposed legislation affecting imported industrial fasteners.

To _ avoid any possible misunderstanding of what is being

. requested I enclose an excerpt of the Congre'ssional Hearing at which Mr. Brian K.

Grimes, Acting Director, Division of Reactor Inspection and Safeguards, Office of Nuclear Reactor Regulation, Nuclear Regulatory Commission, testified about imported industrial fasteners.

The full text of the testimony can be found-in Document Serial No. 100-175 pages 270-365.

The FOIA also provides that if only portions of a file are exempt from release, the remainder must be released.

I therefore requeri.t that I be provided with all non-exempt portions which are reasonably segregable.

I, of course, reserve my right to appeal the withholding or' deletion of any information.

I am prepared to pay reasonable costs for locating the requested fi1 *, and reproducing it.

If the fees will exceed

$100.00, please inform me of the charges before you fill my request.

In such event, I request permission to review the records which are responsive to this request and to select those which I want copied.

J.f-$l-(/-8 OOOh

j

• = L ttention:

Freedom of! Information Act Request August 4,._1989

/.

. Page' 2 If you have any question regarding this request, please'

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telephone-me at the above number.

As provided in the Freedom of Information Act, I will expect to receive a reply within ten working days.

Sincerely,

,bhb QQ N&

Matthew T. McGrath Enclosure 9

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(Part 2) o HEARINGS; l

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< esmposed of Mr. Victor Stellof Executive. Director of Operctionx..

the record ct the cppropriate place.

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Mr. Srsum. hnk you, Mr. Chairmas.

. U.S. Nuclear Regulatory Commission, who is accompanied by Mr.

. As you cre cware, membere of the NRC Staff have met with'the Brian K. Grimee,' Acting Director, Division of Reactor Inspection and Safeguards: Mr. Ed Baker, III, Vendor Inspection Branch, subcommittee staff on a number of occasions to review NRC data Omce of Nuclear Reactor Regulation: Mr. E. William Brach, Chief, and activities and have provided preliminary licensee fastener test-

, - Vendor Inspects'on Branch, omce of Nuclear Reactor Regulation; result data to the subcmurnittee staff. Additionally, the NRC is fol

• and Mr. Wilham B. Hutchison, Omce of Investigations.

lowing closely the subcommittee's review of fasteners and a coun--

Gentlemen, the committee thanks you for being with us.

terfeit neoue in other U.S. industries for its potential relation to the Did I mies you, Mr. Conway? You have my apologies. We will nuclear industry.

+

vocognise you to introduce yourself.

The NRC has been angresoi 9 in trying to identify the scope'end i

Mr. CoNwAY. I am James T. Conway, and I am with the Vendor magnitude of the fastener coniormswe yd:= in the nuclear in- =

dustry. As vendors are identified who may have deliberatelv sup.

Inspection Branch also.

P ed counterfeit, substandard fasteners to the nuclear imfustry,-

li 4

Mr. Diwosu Thank you for being with us, Mr. Conway.

Gentlemen, the committee, as you know, receives all of its testi.

the NRC's Of ice of Investigations will vigoi*mely pursue each case t

mony under oath. Do any of you object to appearing here under for an appr >printe - civil enforcement and/or civil prosecution through the Department of Justice. Our Office of Investigations I cath?

has coordinated extensively with Federal law enforcement agencies l

[ Chorus of noes.}

on the fasterer innue during the past year.

Mr. Diwosu Very well.

During the past few years, NRC has performed numerous inspec-I i

Gentlemen, it is your right to be advised by counsel in connec.

tions of fastener manufacturers and suppliers. Genera!Iy the in-tion with your appearance here today. Do any of you desire to be spections have been pedormed in response to specific Twtener represented by counsel or advised by counsel during your appear-problems identified at nuclear power plants. However, NRG at cnce here today?

tention on fasteners was heightened in 1986 when the Industrial-7 Chorus of noes.]

i

[Mr. DINcau Gentlemen, for your information, to inform you of Fastener Irmtitute informed the NRC of the existence of a counter-feit market for fasteners. That is, the IFI reported SAE grade 8.2

! your rights and the limitations on the power of the comrrittee, boha wne m,arked as grade 8.

l copies of the rules of the subcommittee, rules of the committee and The N rules of the House of Representatives relative to your appearance entitled,RC issued Information Notice No. 86-25 and a supplement

' Traceability and Material Control of Material and Equip.

today are before you in the red and the bound books at the commit-ment, Particularly Fasteners," m 1986 to alert NRC licensees of po.

tee tchle tentially significant lems related to the inspection of material, Gentlemen, if you have to objection to being sworn, if you will

'"#h' "I I"*'#"8-Purpene of this information was to prevent please rise and rise r right hand.

the use of incorrect or defective material, and especially.to alert Witnesses sworn.

t icenseen of the possible existence of counterfeit bolta.

r. Dinosu Gentlemen, consider yourselves under oath. The 1

e NRC had previously initiated a generic issue review, GI-29, Chzir thanks you for your presence today and for your annintance y ng adation or Failure m Nuclear Power Plants, which ad-to the committee dreases the broader fastener-related issues ofjoint design, material-l Mr. Stello, do you have a prepared statement?

"6' ection, fabrication, metallation, inspection and testing of fasten-Mr. Srsum. Yes, I do, Mr. Chairman.

l Mr. Dinczu Then you are recognized to give it-fler being notified by IFI of the counterfeit fastener imeue and citer imeuing Information Notice 86-25, the NRC began a sampli l

TESTIMONY OF VICTOR STELIM, EXECUTIVE DIRECTOR FOR OP-and testing program of fasteners as part of inspectione perf i

l ERATIONS, NUCLEAR REGULA'IDRY COMMISSION, ACCOMPA-at licensee facilitsee and raetener manufacturers and suppliers. To I

NIED BY BRIAN K. GRIMES ACTING DIRECTOR, DIVISION OF date, we have sampled and tested a total of 137 fasteners from 16 REACIOR INSPECTION AND SAFEGUARDS, OFFICE OF NUCLE-nuclear power planta. This total mcludes 28--and that is a correc-l AR REACIOR REGULATION: AND ED BAKER 111 AND JIM tion from my submitted testimony, which said 31-fasteners select-l CONWAY, VENDOR INSPECTION BRANCH ed by the subcommittee staff at Calvert Cliffe and Perry Nuclear Mr. Srstu). Thank you. Mr. Chairman and members of the sub-Power Plants. The NRC testing is independent of the licensee's committee, on behalf of the U.S. Nuclear Regulatory Commission I tentmg of fasteners in response to NRC Bulletin 87-02, which I will discuss shortly.

f i

thank you for this $portunity to meet with you today to discussis taking to addreas our concerns about the I

The NRC test resulta show that 27 of the 137 fasteners failed to actions that the NR I

I conformance of fasteners used m the Nuclear Industry.

meet the material specification for which the fasteners were identi-I harve attached to my prepared testimony responses to the spe-fied. This is a nonconformance rate of approximately 20 percent. It i

cific questions contained in the subcommittee *e letter of invitation.

should be noted that the NRC sample selection process was biased i

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l August.4, 1989 FREEDOM OF INFORMATION-ACTREQUEST Attention:

Freedom of Information Act Request

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U.S.

NUCLEAR REGULATORY COMMISSION-

@ y p[.Q

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Washington, D.C.

20555 c:

Dear Sir:

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This :is. a request under the Freedom of Information'Act as i

L amended (5'U.S.C. 5 552).

r l '.

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I. request a copy of the source' materials, reports, i

memoranda, research, orders, opinions, etc., which were used as the basis of.

testimony before Congress regarding -proposed

. legislation affecting imported industrial fasteners.

!L f

.To avoid any possible misunderstanding of what is bei~ng requested I enclose an excerpt.of the : Congressional Hearing at twhich~ Mr.

Victor.Stello, Executive Director for Operations, j;

Nuclear-Regulatory Commission,'

testified.about imported-L industrial fasteners.

The full text of the testimony can be.

found in Document Serial No. 100-175 pages 270-365.

j t

p The FOIA also provides that if only portions of a file are l

exempt from release, the remainder must be released.

I therefore-O request that I be provided with all non-exempt portions which.are reasonably-segregable.

I, of course, reserve my right to appeal the withholding or deletion of any information.

i I am prepared to pay reasonable costs for locating the requested file and reproducing it.

If the fees will exceed

$100.00, please inform me of the charges before you fill my request.

In such event, I request permission to review the records which are responsive to this request and to select those which I want copied.

i

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August 4; 1909 Page-2

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L If you-- have 'any_ question regarding this request,. please telephone me at the above number.

As provided in the Freedom of Information Act, I will expect

+

to receive a-reply-within ten working days.-

sincerely, bA MS

,p. s,

Matthew T. McGrath Enclosure s

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1 1

COUNTERFEli METAL FASTENERS (Part 2)

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HEARINGS BEFORE THE V

SUBCOMMITTEE ON-

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OVERSIGilT AND INVESTIGATI NS 0

OF THE

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ENERGY AND 003DIERCE

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Serial No. 100-175

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y The Chair cnnounces that our first group of witnesses is a panel Mr. Dmonu_ Without objection, that addition will be inserted in

^ composed of Mr. Victor Stello,' Executive Director of Operations, the reconi ct the cppropriate place.

iU.S. Nuclear Regul: tory Commission, who is accompanied by Mr.

Mr. Srrun. Thank you, Mr. Chairman.

Brian K. Grimes, Acting Director, Division of Reactor In:pection As you cre cw re, members of the NRC Staff have met with the

- subcomm,ttee staff on a number of occasions to review NRC data

~ end Safi ards: Mr. Ed Baker,'III, Vendor Inspection Branch, i

' Office ofTuclear Reactor Regulation; Mr. E. William Brach, Chief, and activities and have provided preliminary licensee fastener test i

l Vendor Ins ion Branch, ofnce of Nuclear Reactor Regulation; result data to the subcommittee staff. Additionally, the NRC is foi-and Mr. Wi m B. Hutchison, Office of Investigations.

lowing closel,v the subcommittee's review of fasteners and a coun-Gentlemen, the committee thanks you for being with us.

terfeit issue m other U.S. mdustries for its potential relation to the Did I miss you, Mr. Conway? You have my apologies. We will nuclear industry.

recognine you to introduce yourself.

The NRC has been aggressive in trying to identify the scope and Mr. CowwAY. I am James T. Conway, and I am with the Vendor magnitude of the fastener conformance A;. in the nuclear in-Inspection Branch also.

dustry. As vendors are identified who may have deliberately sup.

l Mr. Diwcru_ Thank you for being with us Mr. Conway.

plied counterfeit, substandard fasteners to the nuclear industry, Gentlemen, the committee, as you know, receives all of its testi-the NRC's Orfice of Investigations will vigorously pursue each case mony under oath. Do any of you object to appearing here under for. an a to ate civil enforcement and/or cml prosecution I

i onth7 through t _

partment of Justice. Our Office of Investigations g

has coordinated extensively with Federal law enforcement agencies hCho on the fastener innue dunne the past year 3 ' ht to be advised by counsel in connec.

During the past few years NRC has performed numerous irispec-Gent me ti o

rig tions of fastener manufacturers and supphers. Generally the in--

i tion with your appearance here today. Do any of you desire to be i

represented by counsel or advised by counsel during your appear.

spections have been performed in res to specific fastener problems identified at nuclear power p ants. However, NRC's at-Ence h're todaY-9 tention on fastenem was heightened in 1986 when the Industrial M.

NCF 1 ntlemen, for your information, to inform you of Fastener Institute informed the NRC of the existence of a counter-your rights and the limitations on the power of the committee, at is, the IFI reported SAE grade 8.2 mar et fo tene copies of the rules of the subcomm,ittee, rules of the committee and The N C l

rules of the House of Representatives relative to your appearance ent;g,R,,g. issued Information N.otice No. 86-25 and.a suPP eme,nt todsy are before you in the red and the bound books at the commit-recen M and Ma asteners,,tenal Control of Matenal and Eqmp-ment. Particularly m 1986 to alert NRC licensees of po.

Gentlemen, if.you have. to objection to being sworn, if you will l

tentially significant roblems related to,the inspection of matenal, includmg fasteners e purpose of this mformation was to prevent please rise and rise your ngM hand.

1

[ Witnesses sworn.1 the use of incorrect or defective material, and especially to alert i

Mr. Dmoru Gentlemen, consider yourselves under oat. 7 e l

the licensees of the possible existence of counterfeit bolts.

Being %dah w Fsh b Mm Pm NA dd'The NRC had previously i 29 Chair thanks you for your presence today and for your ass, stance i

to the committee.

Mr. Stello, do you have a prepared statement,.

dresses the broader fastener.related issues of ',oint design, material i

Mr. STrun. Yes, I do, Mr. Chairman.

selection, fabrication, installation, inspection and testing of fasten-em Mr. DINoEu. Then you are recognized to give it.

fter being notified by IFI of the counterfeit fastener issue and TESTIMONY OF VICTOR STELLO, EXECUTIVE DIRECIVR FOR OP-after issuing Information Notice 86-25, the N,RC began a sampling and, testing program of fasteners as part of inspections WL;..a ERATIONS, NUCLEAR REGULATORY COMMISSION, ACCOMPA-NIED BY BRIAN K. GRIMES, ACTING DIRECTOR, DIVISION Oy at hcensee facilities and festener manufacturers and suppliers. To date, we have sampled end tested a total of 137 fasteners from 16 REACTOR INSPECTION AND SAFEGUARDS, OFFICE OF NUCLE-nuclear power plants. This total includes 28-and that is a correc-AR REACTOR REGULATION: AND ED BAKER 111 AND JIM tion from my submitted testimony, which said 31-fasteners select-CONWAY, VENDOR INSPECTION BRANCH ed by the subcommittee staff at Calvert Clifts and Perry Nuclear j

Power Plants. The Mr. STrue. Thank you. Mr. Chairman and members of the sub.

testmg of fasteners,NRC testing is independent of the licensee's committee, on behalf of the U.S. Nuclear Regulatory Commission I m response to NRC Bulletin 87-02, which I will 4

discuss shortly.

th nk you for this opportunity to meet with you today to discuss f

cctions th'at the NRC is taking to address our concerns about the The NRC test resulta show that 27 of the 137 fasteners failed to i ' conformance of fasteners used in the Nuclear Industry.

meet the matenal specification for which the fasteners were identi-I have attached to m prepared testimony responses to the spe-fied. This is a nonconformance rate of approximately 20 percent. It l

ific questiofis containedin the subcommittee's letter of invitation.

should be noted that the NRC sample selection process was biased '

c l

1

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