ML20033B078

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Discusses IE Investigation Rept 50-358/81-13 on 810112-1009 & Forwards Notice of Violation & Proposed Imposition of Civil Penalties
ML20033B078
Person / Time
Site: Zimmer
Issue date: 11/24/1981
From: Deyoung R
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE)
To: Dickhoner W
CINCINNATI GAS & ELECTRIC CO.
Shared Package
ML20033B079 List:
References
EA-82-012, EA-82-12, NUDOCS 8111300348
Download: ML20033B078 (4)


See also: IR 05000358/1981013

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NUCLEAR REGULATORY COMMISSION

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NOV 2 41981

Occket No. 50-358

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Cincinnati Gas and Electric Company

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ATTN: Mr. W. H. Dickhoner .

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President

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139 East 4th Street

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Gentleman:

This refers to the investigation conducted by Region III during the period

January 12 to October 9,1981, of construction activities a,t tha Vm. H. Zimar

Nuclear Power Station.

The details of that investigation ara describcd in

Rcgion III investigation report No. 50-358/81-13.

The violations described

in Appendix A to this letter are cross-referenced to that report in accordance

with Appendix B to this letter.

The investigation was initiated as a result of allegations made to the HRC

by a Quality Control Inspector who formerly worked at the Zinner site and

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by the Government Accountability Project of the Institute for Policy Studies

(a non governmantal agancy) on behalf of Mr. Thoraas Applegate.

The rtsults of

the continuing investigation reveal a widespread breakdown of your quality

assurance program as evidenced by numerous exaoples of nontoapliance with t'.cive v

of the eightu n different criteria for a quality assurance program as set forth

in 10 CFR 50, Appendix B.

The cause of the breakdown was your failure to

exercise adequate oversight and control of your principal contractors to whor.

you had delegated the work of establishing and executing quality assurance

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ptograms.

You thereby failed to fulfill your vital responsibility as described

in Criterion I of 10 CFR 50, Appendix B, to assure the execution of a quclity

assurance program.

The potential safety concern of your quality assurance

program breakdown was discussed during an enforcement conference at our

Region III office in Glen Ellyn, Illinois, on August 5, 1981, attended by you

and members of your staff and the NRC Region III staff.

Two of the violations (Items A and 8 of Appendix A of this letter) are of

particular concern to us because of the very essential role they play in the

execution of an effective quality assurance program.

These two violations

relate to false records and to harassment / intimidation of quality control

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inspectors.

With regard to false records, the examples we identified raise serious questions

as to the accuracy of quality records at the site.

Our concern in this area

served as a major factor in requiring the conduct of a confirmation program to

be completed by you to furnish evidence of plant quality.

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ETURNRECEIPTREQUESTED

8111300348 811124

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PDR ADOCK 05000358

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Cincinnati Gas and Electric

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Company

Because the NRC inspection program is a sampling program, the importance of

accurate quality records cannot be overemphasized. Accordingly, we have

addressed this matter as a separate violation and assessed a separate civil

penalty for it.

With regard to harassment / intimidation of quality control inspectors, we have

also addressed this matter as a separate violation and assessed a separate civil

penalty for it.

We determined that your construction contractor took some

action to stop the water dousing of quality control inspectors; however, thcse

actions did not stop the activity. Harassment / intimidation of quality control

inspectors is clearly a barrier to effective implementation of a quality

assurante program and results in loss of the organizational independence

described in Criterion I of 10 CFR 50, Appendix B.

The importance of this

matter is reflected in the recent amendment (Public Law 96-295, June 30,1980)

to the Atomic Energy Act of 1954, which added Section 235 relating to protection

of nucicar inspectors such as your quality control inspectors.

The impact of the identified quality assurance deficiencies on the actual

construction has yet to be determined. Limited independent measurements were

performed by the NRC in selected areas of concern in an attempt to characterize

the actual safety significance of these deficiencies. Although a few problems

requiring corrective action were identified (i.e., four unacceptably installed

pipe hangers), the majority of the NRC independent measurements did not dis-

close hardware problems. However, recognizing tt at significant construction

deficiencies could have resulted from the quality assurance problems identified

during this investigation, the NRC has required the establishment of a compre-

hensive quality confirmation program to determine the quality of plant systems

import. ant to nuclear safety. The NRC will confirm the adequacy of the program

and may make additional independent verifications. Deficiencies identified by

these programs will require resolution prior to issuance of an Operating License.

Notwithstanding the fact that serious construction deficiencies have not been

identified, in order to emphasize the need for licensees to have complete and

accurate records, to maintain a work atmosphere where quality assurance

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personnel are not harassed or intimidated, and to assure implementation of an

effective quality assurance program which identifies and corrects construction

deficiencies, we propose to impose civil penalties in the cumulative amount of

Two Hundred Thousand Dollars for the matters in the Notice of Violation. We

expect that this penalty will result in an adequate deterrent against future

similar violations by you and other licensees of plants under construction.

Some of th[ examples in the Notice of Violation occurred subsequent to the

issuance of the revised enforcement policy and some prior to that time.

In

arriving at the amount of the proposed civil penalties we have exercised dis-

cretion, considered changes in the enforcement policy and considered the amount

of the civil penalties.that have been issued to licensees of other plants under

construction 'as well as 'the aumber of examples found of each violation and when

they occu.tred. We have for :onvenience and clarity categorized the items in

the NeU re of Violation at the Severity Levels described in accordance with the

Interim Enforcement Policy published in the Federal Register, 45 FR 66754

(October 7; 1980).

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Cincinnati Gas and Electric

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Company

The result:, of this investigation and our review of your 10 CFR 50, Appendix

B, noncocipliance history reveal an additional matter which is of significant

concern ta us. This matter concerns inadequate corrective actions.

The results

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of our normal inspection program for the construction and testing of Zinner

indicate you were found in noncompliance f9rty-four times since Decerber 1979

with thirteen of the eighteen different cri'.eria of Appendix B to 10 CFR 50.

During our Sydematic Assessment of Licensee rerformance review on December 16,

1980, wa expressed concern with your relativaly poor performance in this area.

This poor history of compliance with 10 CFR 50, Appendix B, when considered with

the recent findings of the investigation indicates that your corrective actions

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only addressed individual problesis and not underlying prograstatic causal factors.

Consequently, we request that you review your history of noncompliance with

10 Ci-R 50, Appendix B, for the past two years and in your response to this

lotter provide those steps you have taken to address and correct the underlying

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programmt.ic causal factors related to the noncompliances.

You are required tc respond to the Notice of Violation and'in preparing your

responsa you should follow the instructions in Appendix A.

You should give

particular attention to those actions designed to assure continuing compliance

With NRC reoujremnt%,.Xm.'5Mait4%MpD&4MS--lettes M.d thter::5URG of -

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future inspections will be considered in determining whether further enforce-

ment action is appropriate.

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In accordance with Section 2.790 of the NRC's " Rules of Practice," Part 2,

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Title 10, Code of Federal Regulations, a copy of this letter and the enclosure

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will be placed in the NRC Public Document Room.

The responses directed by this letter and the enclosed Appendix A are not

subject to the clearance procedures of the Office of Management and Budget as

required by the Paperwork Reduction Act of 1980, PL 96-511.

Sincerely,

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Richard C.

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Office of n pection and Enforectant

Enclosures:

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Appendix A - Notice of Violation and

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Proposed Imposition of Civil Penalties

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2.

Appendix B - Cross References:

Noncompliances to Report Details

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See next page

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Cincinnati Gas and Electric

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Company

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E. A. Borgmann, Senior Vice President,

Engineering Services and Electric Production

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J. R. Schott, Plant Superintendent

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DMB/ Document Control Desk (RIDS)

Resident Inspector, RIII

Harold W. Kohn, Power Siting Commission

Citizens Against a Radioactive Environment

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Helen W. Evans, State of Ohio

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Thomas Applegate

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Louis Clark, Director, GAP

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Institute for Falicy Studies

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