ML20039E860

Responds to Util 811222 Request to Comment on Propriety of Joint Review of Preliminary Draft Rept.Nothing Unprofessional About Consultation W/Util If Rept Not Biased Due to Consultation

ML20039E860
Person / Time
Site:	Diablo Canyon
Issue date:	01/07/1982
From:	Ratliff W AMERICAN CONSULTING ENGINEERS COUNCIL
To:	Palladino N NRC COMMISSION (OCM)
References
ISSUANCES-OL, NUDOCS 8201110554
Download: ML20039E860 (4)

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' PROD.& UTIL FAC.bNdh00; 0meflCOn SW.. . . .,A... s. .s _ .

et Consu ;i ng eng ineers CoUnCl '82 JAN -7 P 1 :29 1015 FIFTEENTH STREET. N.W., WASHINGTON. D.C 20005 O (202) 347 7474 Tews: 897445 AMCONENGRC WSH 0.+ .: - 5?U.E:

DccEin & F-P January 7, 198? f'

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Mr. Nunzio J. Palladino, Jr. 5L

'M'3 Chairman b -

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Nuclear Regulatory Commission \( . .

, ;f Washington, D.C. 20555 y g y .g./ ,.

Dear Chairman Palladino:

On December 22, 1981, the American Consulting Engi-neers Council (ACEC) was asked by the Pacific Gas and

. Electric Company to comment on an issue raised by the State of California and other intervenors in the matter As we understand it, at of the Diablo Canyon project.

issue is the propriety of a joint review of a preliminary draft report for factual accuracy by PG&E's consultant, Dr. Robert L. Cloud, and technical personnel of PG&E. We were not asked nor are we in a position to comment on tech-nical aspects of the case or the contractual relationship between Dr. Cloud and PG&E, but we are pleased to offer our general comments on the relationship of a client and his consultant, based on standards of practices typical to our profession. .

The issue here, put in the form of a question, seems to be: Did Dr. Robert L. Cloud, acting as consultant to his client, Pacific Gas and Electric Company, act in an atypical or unusual manner in reviewing the draft report with his client? .

The " Manual of Practice" of the American Consulting Engineers Council is replete with discussions characterizing the relationship between the consulting engineer and his client. Perhaps the following paragraphs, excerpted from Section I of Part I, "The Profession of Consulting Engi-neering", provide the bes.t general description: OSCd S

"With the increasing need for experienced and specialized knowledge, the consulting engineer /[

is providing both business and government with l 8201110554 820107 i PDR ADOCK 05000275 G PDR ares, dent wiluAM R. RATLIFF Mt. Pleasant. Texas e Senior Vice President DOUGLAS C. WOLFANGLE Bloomington, Minnesota Vsce Pres # dents H. S. (SONNY) HANSOtJ Bilhngs. Montana e MICHAEL A. HERTZBERG. Waitsfield, vermont  !

FU HUA CHEN Denver. Colorado e LEWIS E. HOFFMANN Birrmngham. Alabama

• ROB ERT C. MOORE Mittburn. New Jersey 1 Treasurer DONALD J. SMALLY Sarasota. Florica e Pres, dent-Elect RUSSELL L. SMITH. JR.. Honolulu. Hawaii Executive Vice Prepdent LARRY N. SPILLER e Managing Ostector BRUCE E.VOGELSINGER

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o Mr. Nunzio J. Palladino, Jr.

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January 7, 1982 3 Pago two - --

a reliable source of proprietary engineering competence. He can solve specialized problems, relieve peak loads, or assume the responsi-bility of 'a complete project, from initial planning and investigation through design, en-gineering, observation of construction, and contract management, to completion tests and ~

approvals. In all of these activities, his relationship and responsibilities to his client are those of a pro team member of his client's management staff."

" Highly specialized techaical work is per-formed quickly and reasonably, and only for the duration of the need. The corsulting

. engineer provides objective appraisal, brings to bear experiences from other types of work, stimulates thinking within a client's staff, and can direct his attention exclusively to one accomplishment for the client."

"His client looks to him for studies and decisive recommendations over a wide range of technologies, human relationships, and ethics. He often is in the position of making independent decisions affecting his client's affairs and his own professional integrity. He does not hesitate to assume ,

these responsibilities. In the occasional conflict of business practices and profes-sional. conduct, he is guided by ethical pre-cepts, both of his. profession and of his person."

" Consulting engineers offer a wide variety of ser- ces in all fields of practice. Some firms are in general practice with a staff competent in several fields. Others offer independent professional service in a se-lected field, and some specialists direct their practice primarily to a given science or special technique." .

" Consulting engineers are available for every type of engineering problem involving advice, evaluation, consultation, design or design supervision, or management of an entire facil-ity either during its construction or opera-tion. Projects vary from a small problem re-quiring a few hours' attention, to a large complex facility with completion several years away."

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. Mr. Nunzio J. Palladino,-Jr.

I January 7, 1982 .. .

Page three "A client can look upon the consulting engi-neer in much the same manner as he regards his legal or accounting firm. A consulting engineer is available for periodic checkups to keep the mechanisms of manufacturing working smoothly, to inspect works or equip-ment, to recommend. maintenance procedures or repair, but above all, to assist in planning for the future whenever technical knowledge is required. Without preventive consulta-

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tion and advance planning,.for example, clients may be unaware of problems until an emergency results in costly delays and unnecessarily expensive solutions. For these reasons, many businesses and agencies find it to their ad-vantage to engage a consulting engineering firm on a retainer to provide an unbiased engineering point of view when required!"

(underscoring added throughout)

As a practical matter, then, the consulting engi-neer who properly fulfills his ethical and professional responsibilities to his client is in continuing consulta-tion and dialogue with that client.

In this matter, therefore, assuming that Dr. Cloud possessed the requisite professional education, training, credentials and experience to provide the services re-quested by Pacific Gas and Electric-Company; and assuming that Pacific Gas and Electric asked for and Dr. Cloud pro-vided an unbiased and objective report; and, assuming that there was no coloration of Dr. Cloud's report based on PB&E's review of that report, there would be nothing atypical, unusual or unprofessional, from the perspective of the standards of practices of consulting engineers, concerning Dr. Cloud's review of the preliminary report with Pacific Gas and Electric.

We understand that the intervenors have further pro-posed certain " ground rules" concerning the future rela-tionship between Pacific Gas and Electric Company (or any other party) and its auditors. Among these are prohibi-tions in review or editing of draft reports or other work products by PG&E; prohibitions on PG&E's influencing the scope of conduct of work; and prohibitions on PG&E's ob-taining advance copies of any work product.

To the extent that PG&E is the client retaining the consultant, based on the standards of practices for con-sulting engineers, such " ground rules" would not only be

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). Mr. Nunzio J. Palladino, Jr.

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atypical and unusual, they would contradict a long-estab-lished professional. practice that holds that the consulting engineer should release no information unless and until it has been reviewed by the client and the client has autho-rized its release.

We' hope these comments will be helpful to the Com- -

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missions further deliberations on this matter.

Sincerely, William R. RatIiff

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President ,

WRR:tr phc: Commissioner John F. Ahearne Commissioner Peter A. Bradford Commissioner Victor Gilinsky Commissioner Thomas M. Roberts e