ML19338C111

Util Pretrial Brief for Show Cause Proceeding.Evidence Presented by CPC Will Show That CPPR-81 & CPPR-82 Should Not Be Suspended,Revoked or Modified & Should Remain Effect Until Const Completion

ML19338C111
Person / Time
Site:	Midland
Issue date:	07/08/1974
From:	Mark Miller, Renfrow R CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), ISHAM, LINCOLN & BEALE
To:
Shared Package
ML19338C109	List: ML19338C108 ML19338C111
References
NUDOCS 8008050564
Download: ML19338C111 (12)

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I UNITED STATES OF AMERICA

' . ATOMIC ENERGY COMMISSION In.the Matter of )

L ) Construction Permits CONSUMERS POWER COMPANY )

) Nos. 81 and 82 (Midland Plant, Units 1 and 2) )

l l CONSUMERS POWER COMPANY'S PRE-TRIAL BRIEF FOR SHOW CAUSE PROCEEDING l

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Isham,. Lincoln &.Beale By: Michael I. Miller, Esq.

R. Rex Renfrow, III,~Esq.

j Scott M. Reznick, Esq. 1 i

One.First National Plaza Suite 4200 Chicago, Illinois- ~60670 (312) 786-7500-L l

? l Submitted: . July 8,~1974 L8008bsog[ . _

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. UNITED' STATES OF AMERICA

~ ATOMIC ENERGY COMMISSION-

-BEFORE.THELATOMIC SAFETY AND. LICENSING BOARD InLthe Matter of )

)

CONSUMERS POWER COMPANY ) Construction Permit

. ._ . ) Nos. 81 and 82

-(Midland. Plant, Units 1 and 2 )

CONSUMERS POWER COMPANY PRE-TRIAL BRIEF r 'l . By--its Order to'Show Cause. dated _ December 3, 1973, the Atomic-Energy Commission ("AEC") , directed Consumers Power Company5 ("C.P.Co. ") to_ participate in a proceeding concerning

, - whether or not'the construction permits for its Midland Plant,

- Units 1 and-2'should.be modified. The Commission specified two 1ssues.in its December 3,--1973 Order to Show cause:

l A.- -Whether-thetlicenseesis implementing its Quality Assurance Program in compliance with Commission regulations:

B.- -Whether.there is reasonable assurance that

such~ implementation will continue throughout

. the~ construction process. -

C.P.Co'.fwillipresent' evidence on these issues.

27 'There:are three other' parties to_this proceeding Jin. addition.to'the' licensee,'C.P.Co'.- They-are the Regulatoryc

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Staff,JBechtel1 Power Corp. and.Bechtel Associates Professional Corp. . -("Bechtel") ,, C.P.co. 's architect-construction for Midland, Land the1Sadinaw[ Group.. Bechtel opposes the_ entry of-anl order-

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-modifying,the construction permits and the Saginaw Group'sup- l 1

ports some unspecified modification of the construction permits. . ,

~ The L Regulatory- Staf f, although ' the . party . in the ordinary ~ situa--

. tion'who would support-a modification of the. construction per-

. mits'~ , has taken the position in this proceeding that no.modifica-tion isfappropriate or'necessary. .Thus,:the only proponent of an orderialtering!the construction permits is the Saginaw Group.

Neither Bechtel nor the Regulatory-Staff have identified any specific. factual issues which they wish to litigate. The-Saginaw-Group lhas' failed to. respond to discovery requests directed

.to determining what-specific factual matters it wishes to liti-

- gate.

I.- CONSUMERS POWER COMPANY DIRECT ~ CASE A. Whether the Licensee is Implementing Its Quality Assurance Program in^ Compliance-

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.with Commission Regulations 3.- 'With respect to this issue, C.P.Co. Will present the testimony of Gilbert ~S. Keeley and Earl V..DeCarli and-the attached exhibits thereto--to showfthat the Quality Assurance Program for the-Midland Plant,. Units 1 and 2, is being imple-

- mented'in~accordance'with the rules and' regulations of the

< Commission, specifically the.18 criteria contained in 10 C.F.R.

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Part 50, AppendixtB. Mr.JKc31ey is the Quality. Assurance-Director.-for.C.P.Co., andfas such he!is respontible for

the Quali ty Assurance actiii v t es of all of'C.P.Co.'s construction i

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projects from design throu'gh pre-operational l testing. His

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testimony. presents a' chronology of C.P.Co.'s Quality Assurance

. Program for Midland from its'--inceptionlin 1969 to the present day. LIn addition,.he-will present,-in detail, the implementa-

. tion of C.P.Co.'s present Quality Assurance Program, including

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an' example of the quality activities associated with aLcomponent

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for the Midland plant, commencing with its design and.ending

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with its installation'at the site. Mr. DeCarli is the' Quality Assurance Manager 1 for Babcock and Wilcox ("B&W") ,

the nuclear steam. supplier for the Midland project. In his capacity < as Quality- Assurance Manager, Mr. DeCarli'is-responsible for the Quality Assurance' Program for all of B&W's

-nuclear projects, in'cluding Midland. His. testimony will present a chronology.of B&W's Quality Assurance Program'for Midland

-and will discuss in detail:how that program is implemented at the present-time. Moreover, the prepared testimony filed by Bechtel~also demonstrates the manifold quality activities undertaken by that organization in implementing Appendix B.

C.P.Co. will present the following testimony and. exhibits in response tol this issue: The testimony of G.S. Keeley consisting of 62 pages and,the following exhibits:

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K-1. .C.P.Co.-Midland' Quality Assurance Manual.

iK-2 . -C.P.Co. Quality Assurance Services. Procedures Manual.

X -3. C.P.Co. Field Quality Assurance Activities ?!.31d Audits per.Section 12.4 of Quality-Assurance' Services Procedures L

Manual.

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4 K-4.. . Midland Quality Assurance. Audit Schedule.

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. K-5.- FSAR Appendix l-B - Quality Assurance Program.

K-6.. --FSAR Quality-Assurance Program. FSAR Amendments 4, 6-and 8.. -

K-7. Electric Plant, Projects Policies ~and Procedures' Manual.

K-8. MidlandfProject Procedures. Manual.

K-9. Letter from Kessler to Krout dated August 30, 1973,

Subject:

Application of N.45.2 to Bechtel Procedures.

K-10. Swnmary;of Consumers Power Company Audits and Non-Con-formances.

K-ll. . Letter from Martinez to Embrey dated June 20, 1973 re:

Bechtel comments on B&W Spec 11.52.

K-12. 'American~ National-Standards for Reactor Plants and Their

' Maintenance -(Draf t 14) .

K-13. 'American National Standards for Reactor Plants and Their Maintenance (Draf t 15) .

K-14. Documentation of Consumers Power Company Activities on Liner. j Plate.

. LThe-testimony of E. DeCarli (B&W) consisting of 15 pages and the following exhibits:

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-Exhibits' B&W-1.  : Chart of B&W-NPGD Quality Assurance. .

ProcessingL calculations NSS Contracts dated July l1,197.4.

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B&W-2.

B&W-3. t Contract. System Descriptions; Contract Equipment .

. Specifications dated 11/13/73.  !

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B&W-4.- Specification. 09-1212000003-00. Revision for Quality-Assurance' Program requirements for nuclear equipment.

. Contract ~No. 620-0012: Consumers Power Company Midland Units 1 and 2.

lB&W-5. Quality Assurance' Review requirements - Matrix' dated

[ July 1, 1974. .

). B&W-6.  : Nuclear Power Generation Division Standard Safety

.Classific'a tion' System 3/28/74. '

B&W-7.- Requisition Form BD 21007 for equipment and services i procured through Lynchburg Purchasing 9/28/73.

B&W-8. Qualicy. Assurance Review of Procurement. Documents dated 7/1/74.

B&W-9.- Purchase Order--Form BDX-1795 dated 9/28/73.

- B&W-10. Preparation.and Assurance'of Restraint Order dated 7/1/74.

B&W-ll. -Quality Assurance audit' Program dated 7/1/74.

B&W-ll(a). Quality Assurance Supplier Status List (SSL) dated 4 . .

7/1/74.

.B&W-12.. Quality Assurance Audit Record System dated 7/1/74.

'B&W-13.(a)'. Change Inquiry / Authorization dated 7/1/74.

L B&W-13 (a)'. ; LPurchasing Change ' Orders dated 9/28/73. .

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B&W-14. cQuality Control Source.Surveillarce-Program dated

'7/1/74.

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B&W-15. Preparation of' Source. Visitation Plan dated 7/1/74.

B&W-16. JProcedure:NPG-1705-03 Rev. 1; Quality l Assurance Docu -

sment File, Dated 57 /1/74.-

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-B&W-17... Policy; Title Instructions Procedures'a d Drawings.i

Issue Dated 2/11/74. a l' ,

UB&W-18.[ ' Disposition'lof Nonconforming,it' ems.- B&W Manufacturer .

- componentsj7/1/74.

B&W-19. - To 'R. Fb Hollander Component Management Unit Mt. ,

1Vernon from C. E. Mahaney Contract-#.'620-0012 Construc- .

- tion'and Plant' site Consumers' Power Company-equipment

name reactor.' vessel. ._

Subject:

Contract Variation 4

CV-212-5 MTV.

t :B&W-20.. Letter from C. ' E. Mahaney L(B&W) to T. A. Martinez

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(Bechtel Associates dated June 18, 1974.

Subject:

B&W Contract. Variation Notice CZ-212-5 MTZ dated

-Decembero13,,1973: covering-the short incore instrumen-tation nozzle.

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%  : 4; The evidence'willLshow:that C.P.Co;'s Quality

- Assurance:' Program;for the Midland' Plant, Units 1 and 2,~is being

'-: implemented in accordance with the Commission's rules and

- regulations and-that-C.P.Co..has taken the steps necessary to-

, meet lthe evolving requirementstof.10 C.F.R.'Part 50,.~ Appendix B and'its as'sociated regulatory guides.-

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fB. . Whether Thereiis Reasonable' Assurance 1That

,Such. Implementation!will-Continue'Throughout

- tthe Construction ~' Process 2

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5 .1 ' C.P. Cob will1 introduce'into evidence;.the testimony' of. Gilbert 1S.f;Keeley( S.teven H.-~Howell'and Russell'C. Youngdahl -

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< t candit hetexhibits attach'ed thereto, to support the proposition that'therefis reasonable assurance that implementation of a

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Quality Assurance Program in compliance with the'AEC's regulations willicontinue throughout the'constructi~on of'the plant. Mr.

Keeley will testify as tc those measures which he is taking to

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. assure lthat the Quality Assurance. Program for C.P.Co., its vendor, architect-engineer,,and' associated suppliers are continually upgraded:to' meet.the evolving standards of 10 C.F.R. Part 50, Appendix B rand its -associated regulatory guides. Mr..Howell, who is C.P.Co.'s Vice-President in charge of construction ac-tivities,~will. testify as to his, involvement in the-Quality Assurance Program and'the steps taken by himself to assure that' Midland Plant, Units 1 and 2, is now and will continue to~be con-structed in al quality manner. These steps include use of qualified consultants,.a committment to upgrading:the Midland-Quality Assurance 1 Program to meet more stringent criteria than those formed in Appendix B and management; attention to new develop--

ments in quality. assurance. Mr. R.C. Youngdahl, who is C.P.Co.'s Senior Vice-President in charge of. planning, c'onstruction, operation andidistribution of electric energy, will testify

asito. Senior' Management'sfattitude toward the implementation of the Quelity Assurance' Program for the construction of Midland

Station,rUnits 1 and 2. C.P.Co. will~present the following testimonyandexhibitsin'responsetothisissue:

The

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The testimonyiof G.S..Keeley (Refer to Paragraph Three)  ;

.testimon'y~ofnS.H.=Howell' consisting'of-25 pages of testimony-

-and;the:following ' exhibits':

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T y E Thejtestimonyfof-S.jH. Howell. consisting of 25 pages._of. testimony Land the I following exhibits:

H .'. . . Letter from'S.-'H..Howell datedLMarch~7, 1973 J.

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Subject:

fDepartment Policies and Procedures.  ?

H-2. Memo)from C. Q. Hills to V.-'M.'Buttles-dat'd November'6, e 1972-

Subject:

] Department Policies'and Procedures Review'of Draft 4 Section12.

H-3'. :L'etter from D. .L. Maxwell, NUS Consultant, to S. H. Howell. ,

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dated-December 15, 1972~- ' Audit of. Quality Assurance Program.

H-- 4 . Memo from'S. H. Howell to R.~ C. Youngdahl dated' January _29,-.

'19.73- Subj ect': . Quality Assurance _ Organization.

H-5. Memo

from C. Q~. Hills to S'. H. Howell"and W. E. Kessler

' dated-- May- 2 1 , -l1 9 7 3 - -- Midland Plant R.-O. Inspection Report No.

050-329/73-02 R. O. Inspection Report No. 050-330/73-02~.

-H-6. ~ Letter from A. Schwencer (AEC);to.S.-H. Howell dated N'oveinberi9.',-~1973

Subject:

' Docket No. 50-329 and 50-330-

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Review'of Amendment ~22 to the application for construction.

.permitsfand..operatingLlicenses~for Units-liand 2 of the

~ Midland Plant.-

H s .; Memo;;from G.LS'.- Keel'ey to S.'H. Howell dated November 27, 119731 E Sub' j ect

- Analysis of. Cadweld Problems :at Midland.

H1 8.=LMemo-fromlS. H.'cHowell'to G. S. Keeley dated November'29, 1973 ~ Sub3ect: y ality. assurance problems at Midland.

H-9.. Letter!.;frem .Bechtel, Power Corporation (Alden P. Yates) 4: S to ! S.t H. Howell Subjecti . . Midland. Units l' and 2_ Quality Assurancc/Qualitiy Control.

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TH-10.1 LetterLffom NUS Corporation-(N.fJ. Norris) to S. H. Howell-dated. February 14, 1974'. Attachment to it.is NUS Report on

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-; Review-and EvaluationLof the Quality-Assurance. Program for

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Midland Units;l and 2.

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H-ll. Electric l Department-Quality Assurance Program.

-Thec testimony of.R. C. Youngdahlfconsisting of 7 pages of-t'estimony-and'the following:~ I exhibits:

Y-1.' Memo!from H. W. .Slager to G.S. Feeley dated June 7, 1974 Subjecti -Monthly Activities Report Quality Assurance-Midland

-Project - May 197.4.

L Y- 2 . - ElectricuDepartment Quality' Assurance Policy.

Y-3...Memoffrom'R. A.' Lamely to.R. L. Haueter, C. J. Hartman,-

R.fB.lDeWitt-Nuclear. Operations Staff' dated May715, 1974

Subject:

Reporting =of Operation Information-Operating-Nuclear i Plants.:

6. .The evidence will~show that C.P.Co. has taken and willicon'tinue to take steps to-l assurethat its Quality _

Assurance ProgramJandLits: implementing procedures-are in con-formance withiandimeet the evolving-standards for Quality As-

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I surance plans :as they are jdefined by 10 .C.F.R. Part 50.,.Ap- j

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pendix:Btandfits associated l guide 1ines.

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~ II . ISSUES' RAISED IBY THE BOARD-17 . The only' issue raised by the Board is the

'" attitude'of Consumers 1 Power Company, 'and specifically of its

" senior management: personnel, :toward compliance with- the Com-mission's: regulations and license requirements,"= C.P.Co. will present the :testimonyT of Steven H. Howell, ' Vice-President of Consumers Power-Company in charge of construction activities, on involvement iniand approach.to compliance with AEC rules and regulations relating to his area of responsibility. Similarly, C.P.Co. will also present the~ testimony of. Russell C. Youngdahl, Senior Vice-President of Consumers Power Company with regard to?

the attitude of Senior Management Personnel to compliance with~

~AEC rules and regulations with. respect to both construction and~operatienLof nuclear power plants. C.P.Co. will present the lfollowing. test'imony and-exhibits in response to this issue:

S.H. Howell (Refer to Paragraph 5)'

R.C.-Youngdahl1(Refer to Paragraph 5) i.

8. The evidence will show that while Consumers

' Power-Compan'y has been cited.for violations of' Commission regula-l tEons"in?both:the construction'and operation of their nuclear-

' power plants, that these violations?are reviewed and responses-coordinated ~by?C.P.Co.Jmanagement,-and.that proper corrective action hassbeen:taken in response to each citation issued by; i

lthe Commission. LThe~ evidence will:also show that C.P.Co. does

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, not and willinot;tolerateicontinued violations of Commission-

' rules'and' regulations andIthat management responses to AEC

- citations.have.been directed.to organizational and pragmatic

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chahgesttochelp' insure that violations do not recur.

III '.1 CONCLUSION 9.. Consumers Power Company will present testimony on-the' broad issues set forth in the Commission's Order to Show Cause of December 3,1973, and upon the issue -raised by the Board concerning Consumers. Power. Company's attitude'.toward violations of Commision rules'and regulations. This evidence will conclusively'show that the Construction Permits Nos. di and-82 for.the Midland Plant, Units 1 and 2, issued to C.P.Co..

should-not be suspended, revoked or modified and Lhat they

.should' remain in effect until such time as the construction of the plant'is completed.

Respectfully submitted, l (, uccg - .

Michae er

,  : A R .' Rex Renfrowp III

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-Scott M. Reznick Isham, lincoln:& Beale

OnelFirst NationallPlaza Attorneys for Consumers Power Company

? Chicago ,,. -Illinois '60670.

786-7500 Submitted:- JulyJ8, 1974 m . . . __ .J