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

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Construction Permits CONSUMERS POWER COMPANY

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

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

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

R. Rex Renfrow, III,~Esq.

j Scott M. Reznick, Esq.

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One.First National Plaza Suite 4200 Chicago, Illinois-

~60670 (312) 786-7500-L

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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

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CONSUMERS POWER COMPANY

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Construction Permit

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Nos. 81 and 82

-(Midland. Plant, Units 1 and 2

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CONSUMERS POWER COMPANY PRE-TRIAL BRIEF

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By--its Order to'Show Cause. dated _ December 3, 1973, r

the Atomic-Energy Commission ("AEC"), directed Consumers Power 5

Company ("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.

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

Staff,JBechtel1 Power Corp. and.Bechtel Associates Professional

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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-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.

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CONSUMERS POWER COMPANY DIRECT ~ CASE A.

Whether the Licensee is Implementing Its Quality Assurance Program in^ Compliance-

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.with Commission Regulations

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'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. Part 50, AppendixtB.

Mr.JKc31ey is the Quality. Assurance-

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Director.-for.C.P.Co., andfas such he!is respontible for

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

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-3 projects from design throu'gh pre-operational l testing.

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

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. 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 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

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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:

K-1.

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

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iK-2

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

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

Manual.

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. 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:

-Exhibits' B&W-1.

Chart of B&W-NPGD Quality Assurance.

B&W-2.

ProcessingL calculations NSS Contracts dated July l1,197.4.

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

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. 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.

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B&W-6.

Nuclear Power Generation Division Standard Safety

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

a 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 5 /1/74.-

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

Issue Dated 2/11/74.

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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 CV-212-5 MTV.

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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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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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' 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 candi hetexhibits attach'ed thereto, to support the proposition t

that'therefis reasonable assurance that implementation of a Quality Assurance Program in compliance with the'AEC's regulations

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willicontinue throughout the'constructi~on of'the plant.

Mr.

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

~. 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 testimonyiof G.S..Keeley (Refer to Paragraph Three)

The

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

-and;the:following ' exhibits':

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T E Thejtestimonyfof-S.jH. Howell. consisting of 25 pages._of. testimony y

I Land the following exhibits:

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

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Subject:

fDepartment Policies and Procedures.

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H-2.

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

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.

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

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

~ Midland Plant.-

Memo;;from G.LS' Keel'ey to S.'H.

Howell dated November 27, H s.;

E Sub' ect:: - Analysis of. Cadweld Problems :at Midland.

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1 H 8.=LMemo-fromlS. H.'cHowell'to G.

S. Keeley dated November'29, 1973

~ Sub3ect: y ality. assurance problems at Midland.

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Letter!.;frem.Bechtel, Power Corporation (Alden P. Yates)

S to ! S.t H. Howell Subjecti.. Midland. Units l' and 2_ Quality 4:

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.

-The testimony of.R. C. Youngdahlfconsisting of 7 pages of-c I

t'estimony-and'the following:~ 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.:

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.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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ISSUES' RAISED BY 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) 8.

The evidence will show that while Consumers i.

' 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

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

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