ML20045E502

Transcript of 930625 Meeting in Rockville,Md Re Periodic Briefing on Operating Reactors & Fuel Facilities.Pp 1-55. Viewgraphs Encl

ML20045E502
Person / Time
Issue date:	06/25/1993
From:	NRC COMMISSION (OCM)
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REF-10CFR9.7 NUDOCS 9307020151
Download: ML20045E502 (64)

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{{#Wiki_filter:t 't UNITED STATES OF AMERICA . NUCLEAR REGULATORY COMMIS SION i fI3* PERIODIC BRIEFING ON OPERATING REACTORS AND . FUEL FACILITIES P bCC3I C3' ROCKVILLE, MARYLAND h3I6* JUNE 25, 1993 ?sg6S 55 PAGES j 1 i NEALR.GROSSANDCO.,INC. COURY REPORTERS AND TRANSCRIBERS 1323 Rhode-Island Avenue, Northwest -{ Washington, D.C. 20005 (202) 234-4433 9307020151 930625 PDR. 10CFR PDR PT9.7

DISCLAIMER ~ i This is an unofficial transcript of a meeting of the United States Nuclear Regulatory Commission held on June 25, 1993, in the commission's office at one White Flint North, Rockville, Maryland. The meeting was open to public attendance and observation. This transcript has not been reviewed,- corrected or edited, and it may contain inaccuracies. The transcript is intended solely for general informational purposes. As provided by 10 CFR 9.103, it is not part of the formal or informal record of decision of the matters discussed. Expressions of opinion in this transcript do not necessarily reflect final determination or beliefs. No pleading or other paper may be filed with the Commission in any proceeding:aa the result of, or addressed to, any statement or argument contained herein, except as the commission may authorite. HEAT. R. GROSS CoUtf ktfottet$ AHO ttANSCRtllR$ t 1313 RHoet itLAND AvtHut. M.W. (202) 234-4433 WA$HtH0 ton, D.C. 2000$ ' (202) 232 4 600

l 1 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION l PERIODIC BRIEFING ON OPERATING REACTORS AND FUEL FACILITIES PUBLIC MEETING Nuclear Regulatory Commission One White Flint North Rockville, Maryland Friday, June 25, 1993 The Commission met in open

session, pursuant to

notice, at 9:30 a.m.,

Ivan

Selin, h

Chairman, presiding. COMMISSIONERS PRESENT: IVAN SELIN, Chairman of the. Commission JAMES R. CURTISS, Commissioner FORREST J. REMICK, Commissioner E. GAIL de PLANQUE, Commissioner NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. ' (202) 234-4433 WASHINGTON, f,.C. 20005 (202) 234-4433

-e-J L A 2 STAFF SEATED AT THE COMMISSION TABLE: JAMES TAYLOR, Executive Director for Operations' THOMAS MURLEY, Director, NRR 1 THOMAS MARTIN, Region I Administrator STEWART EBNETER, Region II Administrator JOHN MARTIN, Region III Administrator l JAMES MILHOAN, Region IV Administrator-BOBBY FAULKENBERRY, Region V Administrator CARL PAPERIELLO, Director Designate, Division of Industrial and Medical Nuclear Safety, NMSS 9 I h l l i i l NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. j 1 (202) 2344433 WASHINGTON, D.C. 20005 (202) 2344433

.e 3 1 P-R-O-C-E-E-D-I-N-G-S .i 't 2 9:30-a.m. 3 CHAIRMAN SELIN: Good morning, ladies and f 4 gentlemen. 5 The Commission is meeting at this time to 6 receive a briefing by the staff on the status of 7 operating reactors and operating fuel facilities. [ r 8 It's a semiannual presentation of the results of 9 discussions at the most recent NRC senior management 10 meeting held on June 15th, 16th in the Region II 11 office in Atlanta. 12 These meetings, which are an outgrowth of 13 some of the more difficult experiences of the late 14 '70s and early '80s, bring together the senior 15 managers to share their experiences on some of the 16 more preseing operational and management problems that i 17 face the Agency. The senior. NRC staff performs 18 detailed evaluations of those licensees selected for 19 discussion. The Commission, of course, is eager to 20 receive your collective

advice, observations and 21 recommendations on these topics.

22 I understand viewgraphs are available. 23 Commissioners, would you care to say i 24 anything? 25 Mr. Taylor, you may proceed, please. I NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHINGTON, D.C. 20005 (202) 234-4433

~ 4 1 MR. TAYLOR: Good morning. With me at the ? 2 table are Doctor Murley and Carl Paperiello. Carl is i 3 from the NMSS, and the five regional administrators. 4 This was the 15th semiannual senior 5 management meeting, the first having_ been held back in 6 April of 1986. I looked back then in 1986 and at that 7 time, after reviewing performance cross country we had 8 14 plants at nine stations on what we call our problem 9 plant list. Just with that reflection on history, I 10 think through the years 'che NRC senior managers 11 believe this procers Of reviewing performance is very 12 important to us' anc is an effective way to concentrate 13 NRC attention and resources where appropriate with 14 regard to plant performance. We do consider the 15 process an important element to NRC's basic safety 16 mission. 17 This most recent meetir.y was held in 18 Atlanta in June 14th to 16th and I'll now ask Tom 19 Murley to begin presenting the important results.of. 20 that meeting. 21 DOCTOR MURLEY: Thank

you, Jim, 22 Commissioners.

23 I'll remind the Commission-that in 24 preparation for our June senior management meeting NRR 25 and AEOD staff met with the regional staff in a series NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVE.NUE. N.W. (202) 2344433 WASHINGTON. D C. 20005 (202) 2344433

i j 5 1 of meetings here in Headquarters where we reviewed the 2 performance of each~ nuclear plant in the country and i 3 from these screening meetings then the regional 1 4 administrators and I select for further analysis and i 5 in-depth discussion those plants that we wanted to j 6 discuss further at the senior management meeting. 7 This review process, we believe, has -t 8 become a major feature'of the staff's process for. } 9 evaluating operational safety in the United States. 10 The meetings bring together the most experienced l 11 people in the Agency with a purpose of being able to i 12 get the views from each of the senior management there l 13 and that includes my senior staff as well as the 14 regional administrators. 15 The focus of the meetings is to de.termine l l 16 whether the operational performance of these plants 17 being discussed has revealed weaknesses or downward ~l 18 trends that warrant increased NRC regulator'/ l 19 attention. At our preliminary screening meetings, we 20 also review plants that have been found to have good j l 21 safety performance over the past year or so and we 22 discussed those at the senior management _ meeting as 23 well. Among those plants, we've concluded that'eight 24 have shown consistently high performance and warrant i l 25 recoanition and reduced inspection activity. NEAL R. GROSS - COURT REPORTERS AND TRANSCRIDERS l 1323 RHODE ISLAND AVENUE, N W. (202) 234-4433 WASHINGTON. D.C. 20005 (202) 234-4433

6 1 (Slide) If I could have slide 6. 2 These eight plants are Diablo Canyon 1 and 3 ~2, St. Lucie 1 and 2, Summer, Susquehanna'1 and 2, 4 which were on the list last time. A.new plant that 5 has been added this time is Grand Gulf, [ 6 (Slide) If I can now turn to the watch-7 list plants, slide 2, which shows the category 1 8 plants, these are the plants that have been removed 9 from the watch list and there were no category 1 10 plants this time. That is, none removed from the~ 11 watch list. 12 (Slide) Slide 3. -l 13 Category 2 plants are those that are 14 authorized to operate, but that the NRC believes must 15 be monitored closely. Category 2 plants are Brunswick 16 1 and 2, Dresden 2 and'3, Fitzpatrick, Indian Point 3, 17 and South Texas 1 and 2. With Fitzpatrick and Indian 18 Point 3 on the category 2 list, that means that both 19 of New York Power Authority's plants are on the watch 20 list. Indian Point 3, as you know, was added this 21 time, as was South Texas 1 and 2. Li 22 (Slide) If I could have slide 4, please. I 23 Category 3 plants are those 'that are l 24 shutdown and which require NRC approval,,that is- -) 25 Conmission approval, to operate and which NRC monitors NEAL R. GROSS .j COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W, (202) 234 4433 WASHINGTON, D C. 20005 (202) 2344433

.e 7 1 closely while they are shutdown. And, of course, .[ 2 Browns Ferry 1 and 3 have been on category 3 for some 3 time now and they remain. category 3 plants. 4 Finally, in response to the Commission's 5 suggestion in a staff requirements memorandum of May 6 the 6th of this year, during the senior management 7 meeting we did identify a plant whose performance we 8 believe is trending downwards but has not reached a 9 point such that its performance would indicate that it 10 be placed on the wat.ch list at this time. t 11 (Slide) If I could have slide 7, please. 12 We, ir, fact, did not have to stretch to 13 find a plant that fit this category. The Perry plant 14 is one that ~ discussed and it's one whose we 15 performance meet these criteria. The staff will 16 advise the Perry Board of Directors by letter of our 17 concerns and will request a meeting to discuss those 18 concerns. Jack Martin will say a few words about 19 Perry at the end of our watch list discussion. But I 20 emphasize, it is not on the watch list. 21 So, in summary, three plants were added to 22 the category 2 watch list and.none were taken off. I-23 think the staff is disappointed to some extent-at 24 this. On the other hand, we think our system is 25 working as it should. We don't believe we've changed NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N W. (20?) 234-4433 WASHINGTON, D.C. 20005 (202) 2344433

i i 8 1 our standards that we've been using for the last 2 several years. We see no obvious common reason why 3 the three plants were added this.' time, but we will ] 1 4 continue the same program and the same effort-that 5 we've had over the past few years. 6 I'll turn now 1.o the regional 7 administrators to discuss the specific plants and Tim l 8 Martin will begin for Region I. 9 MR. T. MARTIN: The first plant I'11 talk 10 about is the Indian Point 3 plant. Indian' Point 3 11 Nuclear Power Plant was first discussed at the June 12 1992 senior. management meeting. 'In recognition that. 13 many of the problems identified at the ' licensee's 14 Fitzpatrick facility were related to inadequate f 15 corporate management oversight and support, the NRC; 16 had increased the attention ~ to Indian Point 3 to 17 determine'if similar problems existed. Many similar 18 concerns were identified. 19 The SALP for the period June '91 through 20 August of '92 identified declining performance in five 21 of seven functional' areas, with security showing some 22 improvement and radiological controls remaining 23 superior. Of particular concern was performance of 24 engineering - and tech support, which declined from 25 category 2 to 3 with noted examples of inadequate NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. (202) 234-4433 WASHINGTON, D C. 20005 (202) 234 4433 i

9 1 evaluation of identified equipment deficiencies, 2 inadequately engineered or untimely design changes and 3 poor communications within and between organizational 4 units. Concern was also identified with a heavy work 5

load, large work

backlog, and weak management 6

prioritization, coordination and oversight. 7 The NRC was also concerned with the 8 effectiveness of the correction action system, the 9 control and oversight of the surveillance test program 10 and the trend in material condition. 11 During

1992, NRC took escalated 12 enforcement action against Indian Point 3 on four 13 occasions, with civil penalties totaling $462,500.00.

14 Recurring elements at route to these actions included 15 inadequate procedure adherence, questioning attitude 16 and attention to detail, inadequate implementation of ) 17 the surveillance test program, untimely or ineffective 18 corrective action for identified problems, inadequate 19 or inaccurate information

flow, and inadequate d

4 A 20 management guidance, oversight and control. A 21 During the fall and winter of 1992, the 22 New York Power Authority performed a self-assessment 23 and developed a performance improvement program, 24 including 120 separate issues to address these 25 concerns. In recognition of the continuing decline in NEAL R. GROSS COURT REPORTERS AND TRANSCR:BL'RS 1323 RHODE ISLAND AVENUE, N.W. (202) 234 4 33 WASHINGTON, D C. 20005 (202) 234-4433

3 10 1 performance, we expanded our then existing Fitzpatrick 2 assessment panel to encompass all NRC activities 3 -related to the ' New York Power Authority, thereby 4 assuring coordination and integrated assessment of 5 licensee performance. 6 During the last senior management meeting, 7 Doctor Murley and I committed to conduct a bror.d-based 8 special team inspection to assess the New York Power 9 Authority's performance related to Indian. Point 3. 10 Since the last senior management

meeting, two 11 significant events have occurred.

First, on January 12 12th, the New York Power Authority determined that the 13 anticipated transient without scram mitigation system 14 actuation circuitry, better known as AMSAC, has been 15 inoperable 'since July of 992. After substantial 16 additional investigation by the NRC staff and 17 discussions with licensee management, the New York 18 Power Authority concluded that they had not maintained 19 the AMSAC system in compliance with NRC regulations 20 and shut the plant down on February 26th, 1993. 21 Further review by NYPA and NRC indicated the AMSAC 22 system had been inoperable since initial installation 23 in May 1989. 24 In recognition that the plant was shutdown 25 but preparing for restart and that the New York Power NEAL R. GROSS .j COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W, (202) 2344433 WASHINGTON. D.C. 20005 (202) 2344433

-e. 11 1 Authority management was beginning _ identify to 2 additional problems with their surveillance testing, 3 corrective action and commitment tracking programs, we 4 decided to delay our special team inspection to avoid ? 5 further distraction of management from the necessary 6 oversight of plant activities. Subsequently, NYPA 7 announced the extension of the shutdown as a plant 8 performance improvement outage with some' 70 new 9 performance improvement

items, 41 of which were 10 required to be completed prior to restart.

The 11 licensee also voluntarily committed to not restart the 12 unit until they were satisfied with the readiness and 13 the NRC had agreed. 14 The second event, on March 19th,' 1993, 15 involved testing of the ultrasonic level monitoring 16 system used during midloop operations. In this case, 17 ' reactor operators isolated the only remaining direct 18 indicating reactor coolant level indicating system 19 when it did not show agreement with the ultrasonic 20 system during reactor coolant system drain down. 21 Plant operators did not notify licensee management of 22 indicating system deficiencies as their procedures 23 would require and conducted unauthorized testing on 24 the level indicating system. Additionally, 25 maintenance staff began disassembly of the reactor NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHINGTON. D.C. 20005 (202) 2344433 i

12 1 coolant pump seals without the operating. crews' 2 knowledge of appropriate plant conditions being set. 3 Enforcement action for both these events 4 and additional problems with implementation of their 5 surveillance testing and corrective action programs is 6 pending. 7 Despite the importance and breadth of-8 isst.es for which the licensee is committed to resolve, 9

w. were not and are still not confident that the list.

10 of restart issues are comprehensive and in early April 11 announced plans to resume our previously suspended 12 special team inspection. The three week special team 13 inspection was recently completed and conclu'ded that 14 the root causes of past performance deficiencies could 15 be grouped into three categories, including weak 16 management processes and controls, weak management 17 skills and vigor, and weak independent oversight. 18 Specific problems were identified with the programs 19 for corrective

action, commitment

tracking, 20 surveillance

testing, emergency diesel generator 21 preventive maintenance and dissemination of 22 administrative policy and guidance, with performance 23 and planning and scheduling, establishing 24 ~

accountability, management of change and 25 organizational communications, and with oversight NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 2344433

4 5 a 7 13 1 provided by the QA organization, ' corporate on-site-2 . management and the on and off-site safety review 3 committees. f 4 The EDO, Director of NRR and I have 'l 5 recently toured the Indian Point

3. site, met with 1

6 senior plant managers and the New York Power. 7 Authority's Board of Trustees to personally assess the l 8 situation and clearly communicate the NRC's concerns 9 with the decline in Indian Point 3 's performance. The-10 licensee acknowledges they have problems and have [ 11 committed to fix them. 12 The New York Power Authority has hired an 13 experienced nuclear plant manager who became the new 1 14 Indian Point 3 resident manager on April 8th, 1993. 15 The Board-of Trustees also hired a management 16 consultant to assess the performance of the nuclear 17 generation department to determine what went wrong and r 18 to make recommendations for corrective action. It 19 should be noted that in less than a year nearly half 20 of the top 28 NYPA management positions responsible i 21 for oversight and support of activities at Indian 22 Point 3 have experienced personnel changes. NYPA must 23 assure the pace and substance of these moves does not i 24 distract the management team from providing necessary 25 support and oversight of plant activities. NEAL R. GROSS' l COURT REPORTERS AND TRANSCRIBERS I 1323 RHODE ISLAND AVENUE. N W. (202) 234 4433 WASHINGTON. D.C. 20005 (202) 234-4433

14 1 CHAIRMAN SELIN:. Mr. Martin, are those 2 changes still_ going on? 3 MR. T. MARTIN: 'Yes, sir, they cre. 4 CHAIRMAN SELIN: So, they've not reached 5 a stable position? l 1 F 6 MR. T. MARTIN: There were a couple more 7 announced yesterday. 8 Recently, improvements have been noted in 9 problem identification, evaluation and resolution. 10

Further, the new resident manager has provided 11 stronger oversight of day'to day activities and is 12 fostering better communications, performance _ tracking 13 and accountability.

14 In-summary, Indian Point 3 has shut down 15 and the New York Power Authority management and staff [ 4 10 are engaged in a substantive performance improvement-1 17 program. Further, NYPA has committed not to restart _ 18 the unit until they are ready and we agree.

However, 19 in light

.o f the hardware Land program problems 20 identified to date, the improvements necessary in 21 plant management and staf f performance and the need to 22 demonstrate plant readiness for restart, the NRC staff 23 has concluded that Indian Point-3 should be listed as-24 a category.2 plant subject to close NRC monitoring. 25 Are there any questions? 9 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASHINGTON, D C. 20005 '(202) 234-4433 -

15 1 CHAIRMAN SELIN: Do you want. to ~ ask 2 questions or do you want to go through -- why don't we - 3 just go through and if people have questions, they'll 4 intercede. Otherwise, just continue with your'- 5 presentation. i 6 MR. T. MARTIN: The next plant, New York' 7 Power Authority's James A. Fitzpatrick Nuclear Power 8 Plant, was first discussed during the June 1991 senior. 9 management meeting. Those discussions were1 10 precipitated by declining performance in the r 11 functional areas of operations, radiological controls i 12 and safety assessment quality verification. The 13 occurrence of an unmonitored radioactive release from 14 their house-heating boiler and the identification'of-15 an unsatisfactory licensed operator requalification. 16 program in the months immediatiely preceding the senior 17 management meeting further supported those concerns. l 18 he a

result, the EDO directed the 19 performance of a diagnostic evaluation team assessment 20 to determine the root causes for the poor performance 21 at the plant.

The licensee utilized the results of ~ 22 their own evaluation, along with those of the DET, to-23 develop a long-term results improvement program which 24 they still implement. 25 The licensee shut down Fitzpatrick in NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE N.W. (202) 234 4433 WASHINGTON. D C. 20005 (202) 2344433

16 i l' November 1991 and subsequently extended the shutdown. 2 in order to resolve numerous' design and engineering 3 deficiencies, most' notably in the fire protection and-4 Appendix R safe shutdown programs. During the January 5 1992 senior management meeting, we placed Fitzpatrick 6 on the watch' list as a category'2 facility.. Last 7 August, the NRC concluded that the Fitzpatrick results 8 improvement program adequately addressed. the. root 9 causes and corrective actions for the previously1 10 identified performance problems -and provided a 11 reasonable process for assessing the effectiveness of 12 those activities. 13 The licensee comp 1<ated a significant 14 number of major work tasks during. the extended 14 15 month shutdown and the work was typically well 16 controlled and performed. Over 5,000 work requests 17 were completed.

Further, the reduction in 18 contaminated areas and combustible material in the 19 plant and the improvements in plant equipment 20 preservation and cleanliness were notable.

21 Last December, the NRC agreed with the New 22 York Power Authority's conclusion that the facility ~ 23 and staff.were ready to safely support restart and 24 power operations and on January 3rd the reactor was 25 again made critical. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASHINGTON, D.C. 2000$ (202) 2344433

17 1 During unit restart and power ascension,- 2 the control room was quiet and professional. The 3 shif t supervisors exhibited good command and control. ~ 4 Evolutions in progress were closely controlled to 5 minimize any interference or distraction.

overall, 6

the start-up was conducted in a deliberate and safe 7 manner with excellent management oversight and 8 control. The plant reached 100 percent power on 9 January 30th, 1993 and all required actions and. 10 milestones of the licensee's start-up plan were 11 successfully completed. -l 12 Since the plant restart, the licensee has 13 experienced five forced outages due to equipment 14 failures or design deficiencies, two of which'resulted 15 in reactor scrams. In each case, operator response to 16 the event, licensee staff safety perspective and 17 outage performance and oversight were good.

Overall, j

18 the licensee has made significant changes to promote 19 both short and long-term improvements in performance. 20 Corporate management has provided substantial 21 resources and oversight. Licensed operator staffing 22 has been improved. The operator requalification 23 program is again satisfactory and the performance and 24 operations, maintenance surveillance, radiological' 25 controls and safety assessment quality verification NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE N W. (202) 2344433 WASHINGTON, D C. 20005 (202) 234 4433

4 la 1 have improved. 2 In

addition, the plant's material 3

condition has been improved. Operating, maintenance 4 and surveillance procedures have been enhanced. The 5 long needed new administration building is nearing 6 completion.- The facilities management team'under the 7 new resident' manager has been effective. 8

However, with site and corporate 9

engineering performance has been generally acceptable 10 and some. tangible improvements have-been achieved, 11 there have been notable examples of poor performance. 12 Although we acknowledge the licensee has devoted-13 substantial time and resources to improve performance-14 'in this function, strong licensee management attention 15 remains warranted in this area. 16 In - summary, we 'are encouraged in the 17 improvements we have seen at the Fitzpatrick facility. 18 Improved management oversight, increased staff 19 accountability and a conservative safety attitude 20 toward operations has been evident. However, in light 21 of our continuing concerns with the ' performance of 22 engineering and tech support, the recent-changes in 23 . corporate staff and the decline of performance at 24 Indian Point 3, each of which presents a significant 25 opportunity for distraction of management attention NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE N W. (202) 234 4433 WASHINGTON, D.C. 20005 (202) 234 4433

19 1 necessary to' sustained continued improvement, the NRC 2 staff has concluded that Fitzpatrick should remain a 3 ' category 2 plant subject to close NRC monitoring. 4 DOCTOR MURLEY: Okay. We 'll ~ move' on then. 5 CHAIRMAN SELIN: I'd like -to ask' a 6 question. 7 The report-on Fitzpatrick'is-moderately-8 encouraging. The evaluation of the situation at 9 Indian Point 3 was pretty devastating to the quality 10 of the management. Basically the three points that 11 you brought up encompassed most of what you expect. 12 management-to do. When I visited the plant a little 13 while ago, I - was struck by the fact that there's t 14 nothing all that difficult about the plant. It's a-15 reasonably well designed - plant. There's nothing 16 terrible about the material condition which reinforces 17 the impression that there's been pretty broad 18 management failure first at Fitzpatrick.and then-at 19 Naw York Power Authority. So, I think it is fair to 20 ask if in your opinion management's attention is truly 21 engaged and engaged to get fundamental root cause 22 improvements and not just enough to get this 23 particular crisis over and then get on with their 24 operations. I 25 MR. T. MARTIN: Mr. Chairman, looking at

j i

i NEAL R. GROSS -l COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASH!NGTON, D C. 20005 (202) 2344433 i Y

i 20-1 what.- they have done - at Fitzpatrick, I think' it 's 2 pretty clear that they want.that to be a very good 3 running plant. For whatever reason, Indian Point 3 4 did not come along with that improvement that occurred 5 at Fitzpatrick. I think ' more - recently they have 6 recognized the depths of their problems, although 7 maybe not all the specifics, at Indian Point 3 and I 8 see a renewed commitment there to improving things. 9 I agree with. you' there are no 10 insurmountable hurtles here and the Fitzpatrick plant' 11 did have some real hardware issues that had to be' 12 dealt with. Indian Point 3 has nowhere near those 13 hardware problems to deal with. Both had: some 14 substantive improvements they had to engage in_in 15 management activities and oversight'and that's what 16 they're doing right now. My sense is that they. really-17 are going to turn this around, but it's going to take 18 some time. 19 CHAIRMAN SELIN: Thank you. 20 DOCTOR MURLEY: Could I add a point there? 21 CHAIRMAN SELIN: Please. 22 DOCTOR MURLEY: Jim Taylor and I went up. 23 with Tim. -I had not been at the plant forseveral 24 years. I guess I was disappointed -that its 25 performance-has gone downhill substantially since the NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N W. (202) 234-4433 WASHINGTON. D C. 20005 (202) 234 4433 I

P s' 21 1 time I remembered in the mid '80s. What I found there 2 that was most troubling was an attitudinal problem at 3 the plant, at least at some workers and some manager 4 level, and this attitudinal problem had to do with. 5 their attitude toward safety and maintaining safety 6 equipment and that sort of thing. 7 I'm convinced that no one wants to be on 8 the watch list. No one wants this kind of attention 9 and so I'm convinced like Tim is that they want to do 10 better. But I guess I'm not as sanguine that they 11 are -- I think we're just going to have to wait and 12 see whether they take the steps to really change the 13 attitude at the plant so that there -is long-term 14 improvement that lasts. I think we just have to wait. 15 CHAIRMAN SELIN: Okay. Thank you.- 16 DOCTOR MURLEY: We'11 move on'to Region II 17 plants, Stu Ebneter. 18 MR. EBNETER: The first plant to discuss 19 is Brunswick. Brunswick, a two unit boiling water 20 reactor site in Southport, North Carolina. It's. owned 21 by the Carolina Power and Light Company, CP&L. Unit i 22 2 has been restarted and is operating at 100 percent 23 power. Unit i remains shut down and is tentatively 24 scheduled for restart in late September of '93. - 25 Brunswick was placed on the watch list in NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHINGTON, D C. 20005 (202) 234 4433

22 1 LJune of;1992 because of. poor performance traceable to 2 management issues, ineffective self-assessments and a 3 weak corrective action program. These were manifested 4 in operational difficulties, inadequate work control 5 procedures, large maintenance backlogs and a degraded 6 plant material condition. CP&L voluntarily shut down 7 both units in April of 1992 and subsequently developed 8 both a short-term corrective action plan and a long-i i 9 term corporate improvement plan. NRC affirmed these 10 through a confirmatory action letter in December. 11 In implementing the plan', CP&L has made. 12 extensive - changes in management in organizational-13 structure. Senior executives with extensive nuclear 14 operations experience in diverse corporate backgrounds 15 have been placed~ in key positions both at the 16 corporate office and at the station. The organization I 17 has been realigned to provide enhanced support to the 18 station. Oversight of_those functions that directly 19 impact station operations have been transferred back 1 20 to the station such that two of the most important 21 ones are engineering and training. 22 The management expectations and standards i 23 have been defined and were clear'ly communicated to the 24 staff through meetings and training' sessions. -l 25 Accountability has been emphasized throughout the' NEAL R. GROSS COUHT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 234 4433-WASHINGTON. D.C. 20005 (202) 234-4433

.c 23. l 1 organization. Self-assessments have been .2 strengthened, findings.are meaningful -and more ? 3 -importantly we find that these findings are actually 4 now being used by management to take corrective 5 actions in response to the assessments. _i 6 Nuclear safety review boards with outside 7 experience have been installed at both the corporate 8 level and at station level to provide additional i 9 oversight and feedback and assessment'to the senior 10 management. ,i 11 CP&L actions to correct root causes 12 related to degraded material condition of the plant 13 were completed in accordance with their commitments. 14 Emergency diesel generators were reworked, seismic 15 walls have been upgraded, corroded equipment replaced 16 and deficiencies in structural-steel were corrected. i 17 A new work control system was instituted which i 18 provides more control of the work and minimized impact 19 on control room activities. 20 Brunswick performed self-assessments to 21 assess readiness to operate Unit 2 and the NRC 22 conducted an operational readiness assessment team 23 inspection to verify and confirm restart readiness, 24 Restart readiness was concurred in by the NRC on April t 25 27th, 1993. The Unit ~2 restart was well managed, NEAL R. GROSS i COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON. D.C. 20005 (202) 2344 433

4 24 1 conservative and proceeded in a very deliberate 2 manner. Very few problems were encountered during the 3 start-up and power ascension phase. The equipment 4 performed well and the operations staff handled 5 evolutions properly and did a very good job.on just 6 handling all the evolutions as they came. The NRC 7 conducted around the clock inspections during the 8 start-up and power ascension to verify activities and 9 monitor licensee performance. As noted when I first 10 started, Unit 2 is at 100 percent power and has been 11 running almost a month now with no operational 12 difficulties. 13 Unit 1 is in a refueling mode undergoing 14 a process similar to the one used for the recovery of 15 Unit 2. NRC has extensive inspection effort going on 16 there. Unit 2 is tentatively' scheduled to restart in 17 late September of '93. 18 Any questions? 19 CHAIRMAN SELIN: You seem generally pretty 20 happy with the progress at Brunswick. Is that a fair. 21 summary? 22 MR. EBNETER: Yes, lately. Since last 23 January, significant progress has been made. We see 24 much improved station, good management interaction; 25 senior management actively involved at the station. NEAL R. GROSS COURT REPORTERS AND TRANSCalBERS 1323 RHODE ISLAND AVENUE, N W. (202) 234-4433 WASHINGTON, D C. 20005 (202) 234-4433

25 1 The start-up was probably one of the smoothest I have 2 experienced. 3 CHAIRMAN SELIN: Communications between 4 the different levels was not terrific. 5 MR. EBNETER: No, it's much improved. The 6 president has monthly meetings at the station and he 7 has a 4 C program in which he actively is involved 8 with station staff and they interact. The station 9 manager has a-similar system. They have developed 10 several new communications path via station 11 newspapers, announcements, and there is very active 12 line management interacting with the station. About 13 two years ago you couldn't -- if you checked the plant 14 entry logs, you found very few managers getting into 15 the plant and now you find a big change in this. I 16 CHAIRMAN SELIN: The employees take whatever they call their 17 advantage of their 18 program, the allegations program? Do they seem to-19 feel free to come to management with comments? 20 MR. EBNETER: I think they feel freer now. 21 I'm not so sure that the speak-out type program, and' 22 they do have one, I'm not sure that that's as-23 effective as it could be. We have not done. an 24 extensive inspection on that, but I have the feeling, 25 just some preliminary numbers, that that is more or NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N W. (2C2) 2344433 WASHINGTON, D.C. 20005 (202) 2344433 t

26 1 less for processing people out as. opposed.to feeding 2 problems back. t 3 Brunswick will remain on the list as a 4 category 2 plant until they demonstrate a sustained ~ s 5 performance. 6 Browns Ferry is the next plant. Browns 7 Ferry, three unit boiling water reactor located near 8

Athens, Alabama, owned by the Tennessee Valley 9

Authority. Unit 2 was restarted from an extensive 10 outage on May 25th. It is operating at 100 percent 11 power and operating quite well. Units 1 and 3 are 12 shutdown, listed as category 3 units - on. the watch 13 list. They have been on the watch' list since October 14 of 1986. 15 TVA has designat'ed the recovery of unit 3 16 as a priority task. Extensive engineering and 17 modification work are prerequisite to the restart of .i 18 the unit. Progress on engineering work has been very 19 slow for the past year and since engineering is'the 20 pacing activity for the unit, all other activities 21 have fallen behind projected schedules. 22 The difficulties that they were having 23 with the recovery of this new work, TVA identified 24 these as being organizational interface problems and 25 low productivity. In

addition, the management i

NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASHINGTON, D O 20005 -(202) 234 4 433

y 27 t 1 oversight was not very effective. TVA reorganized the 2 site, placed all the work activity under the site vice 3 president. Prior to this, responsibility to the site 4 had been split between a vice president for design and 5 construction and an operating vice president and now 6 it has been consolidated all under the operating vice 7 president. 8 Additional management changes were made by 9 the contractors who were doing the engineering work, 10 and we think this helped also. The result was an 11 overall increase in productivity for output in the 4 12 engineering aspects. However, the priority at TVA was 13 on this extensive Unit 2 outage which was about 120 14 day outage and a.significant portion of the resources 15 that were used for Unit 3 were transferred to Unit 2 16 to assure rapid recovery from the outage, and that 17 delayed the Unit 3 work further. 18 The Unit 2 completion of the outage work, { 19 once that was over they did take those resources and j 20 have reapplied them to Unit 3. The TVA is currently 21 reanalyzing the total scope of effort at Unit 3 and 22 they have identified additional work to be done and 23 this has further pushed the scheduled out. The 24 current schedule is still January 1994, which is not 25 very realistic and I expect to get a new schedule from i NEAL R. GROSS ' COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISt.AND AVENUE, N.W. (202) 234-4433 WASHINGTON. D C. 20005 (202) 234 4433

'28 1 TVA within the next few weeks. Browns Ferry Units 1 i i 2 and 3 remain on the watch list as category 3. 3 CHAIRMAN SELIN: Is there any 4 interaction -- I mean TVA's got major projects going 5 on Browns Ferry 3, on Watts Bar and at Sequoyah. Are-6 there interactions among these? How are the other two 7 projects doing compared to TVA's? Are their 8 evaluations realistic or are they too optimistic on 9 the other projects also? 10 MR. EBNETER: Sequoyah, both units have 11 shutdown. I think their original projections were 12 optimistic. We had a meeting this week on Sequoyah 13 and I think they have now realigned their schedules in 14 accordance with the work load and I think they have a 15 realistic schedule now and they _have adequate 16 resources on that one. 17 Watts Bar, we had a meeting this week 18 also. Significant progress is now being made at Watts 19 Bar. There's a significant number of craft on-site 20 and it's very obvious from a plant tour that work is i 21 really moving forward. Their announced schedule is 22 spring of '94 for fueling-of Watts Bar 1. That's 23 probably achievable, but it means everything has to be l 24 quite efficient as they go. But I think we do see 25 increased management attention now to all of the NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. -l (202) 2344433 WASHINGTON, D.C. 20005 (202) 2344433

29 y 1 projects.. 2 CHAIRMAN SELIN: Is the nuclear complex -? 3 getting enough management attention and resources to 4 meet the standards that they've set and the promises 5 that they've made? 6 MR. EBNETER: I think the realignments are 7 helping that and senior management is more involved. ~ 8 They have been very visible at the meetings last 9 month. .I think there are adequate numbers of 10 resources, but I still think they need some 11 improvement in the management control-of these i 12 projects. 13 CHAIRMAN SELIN: And-the employee l 14 dissatisfactions as expressed in large numbers of 15 allegations, et cetera, has that continued at Watts 16 Bar or is that -- l 17 MR. EBNETER: That's continuing at a 18 fairly high level at Watts Bar, to a much lesser i t 19 degree at the other sites. 20 DOCTOR MURLEY: Okay. -Jack Martin will 21 talk about Region III plants. 22 MR. J. MARTIN: Thank you. 23 Dresden was first placed.on the problem-24 plant list in June of 1987 and was removed _ in December 25 of 1988. It was again placed on the problem plant-NEAL R. GROSS i COURT REPORTERS AND TRANSCR$ERS 1323 RHODE ISLAND AVENUE, N W. (202) 234A24 WASHINGTON. D.C. 20005 -' (202) 2344433

30 j ^ 1 list in January of 1992. The major causes for being 2 placed on the problem plant list the second time were 3 non-compliance with procedures, inadequate procedure 4 quality, poor communications and weak engineering and 5 licensing support. At the time, the staff judged that t. 6 performance by the station staff and inadequate 7 management direction were considered to be responsible 8 in about equal proportions. 9 Since the last senior management meeting 10 there's been several developments at Dresden and I'll' 11 go through a few of them. They have mostly completed 12 a staff reorganization at the Dresden station. A'new 13 site vice president is on board and' the major 14 department heads are in place. A new site manager or 15 plant manager will be in place in the very near 16 future. The new management te'am appears to be capable 17 and energetic and the task at hand now appears to be g 18 to learn to work together and work out the interfaces 19 among all these new people. 20 Progress is being made in addressing some 21 longstanding equipment and material condition issues. 22 On Unit 2 during the last outage, there were some 23 major upgrades of large safety pumps and some of the 24 valves. Many of the equipment that-had been repaired 25 had been a problem at Dresden for many years. They NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 AHODE ISLAND AVENUE, N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 2344433-

31 1 made a sizeable dent in repairing and upgrading these 4 2 pumps during the last outage and they seem to be 3 performing very much better. I think this was a major 4 success for them. This was done largely through the 5 use of some outside maintenance contractors and'the 6 Dresden management is trying to use this as an example 7 of how their own system engineers should be' operating-8 and to establish a new baseline of expectations for 9 that group. 10 The Dresden people estimate that they'll 11 need at least one more large outage on Unit 2 and two r 12 large outages on. Unit 3 to finish upgrading the P 13 equipment in the plant to the state that they desire. 14 Progress is also being made in the operations area. 15 Engineering and quality assurance,

however,

-are 16 struggling to find their proper role and still need 17 work. Improvements are also needed-in the i 18 radiological protection' area. ) 19 In general, the basic programs and systems ~ I 20 have been put in place for managing Dresden and it 21 seems to be under management control, but the task at l 22 hand now is to provide the leadership and execute the l i 23 improvement programs, develop better teamwork and l 't 24 promote good values throughout the site. Based on the' l 25 need for continued improvement and the need to i NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASHINGTON, D.C. 20005 (202) 234-4433 '

32 1 demonstrate the effectiveness of completed 2 improvements, the staff determined that Dresden 3 station should-remain a category 2. plant. 4 CHAIRMAN SELIN: How is Zion doing since 5 it came off? Have they kept up the energy? 6 MR. J. MARTIN: My impression is yes, Mr. l-7 Chairman. I have only spent a couple days there since ~ l 8 the first of the year, but 1 had the impression that l-9 it has maintained the improvements they've made and. l l 10 are perhaps slowly improving. There's been a recent i 11 dislocation there where the plant manager, who is a 12 very key' figure in making these improvements, has been 13 reassigned and it's not clear who is going to replace 14 him and' whether that will have a problem in upsetting - 15 the chemistry of that site, I just don't know. But it 16 seemed on a good track when I was there. 17 DOCTOR MURLEY: I think the NRR staff 18 feels the same way, that the trend is improving. Like 19 Jack, we are concerned, I'm concerned that when you 20 change a key member of a team like that, sometimes it 21 - doesn ' t -- you don' t maintain the momentum. So, we're 22 going to keep and eye on it. 23 CHAIRMAN SELIN: Commonwealth seems to be 24 able to keep working on its problems without seeing j I 25 slippage elsewhere? I mean they're able to find the NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 234-4433 WASHINGTON. D.C. 20005 (202) 234-4433

q 33 1 resources or the energy.to handle all six of their 2 locations? 3 MR. J. MARTIN: Well, I'm not in a real 4 good position to judge that yet. My sense is they're 5 struggling to -- you know, :there's only so many 6 experienced people to go around and whether making 7 changes here adversely effects things over there, I 8 think there's some evidence of that where people.were 9 reassigned from Quad Cities a few months ago and that 10 station seems to be not performing as well as it was. 11 So, I do worry about that a great deal, whether 12 there's enough people with good experience to go 13 -around. 14 And I think the other issue I'm concerned i 15 about is whether the company can maintain focus on a 16 problem long enough to, in fact, get it fixed rather 17 than just see improvement and.then move to something 18 else. But those are just initial impressions'and I I 19 can't be real definitive. 20 CHAIRMAN SELIN: I.sure hope we don't get 21 faced with a Quad Cities problem just at the time 22 Dresden is starting to come off. 23 MR. J. MARTIN: I would hope that's the j 24 case. 25 CHAIRMAN SELIN: That would be very NEAL R. GROSS-COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE N W. (202) 2344433 WASHINGTON, D.C. 20005 (202) 2344433

f 34 1 disappol.nting after the work that the company has put 2 in and the progress they've shown in the last year. 3 COMMISSIONER REMICK:

Jack, it's my l

4 understanding that since Commonwealth-instituted the 5 site vice president idea, which generally seemed like 6 it was a good thing to do perhaps, but there has been 7 a change in every plant manager at every one of the l 8 sites. No plant manager has been there more than 9 about nine months. Is it too early to_know whether 10 that's good or bad, if my understanding is correct? 11 MR. J. MARTIN: Well, like I say, the 12 three plants that I was most concerned about, Dresden, 13 Quad and Zion, have all changed their plant manager 14 within just the very recent past and I don't know -- 15 COMMISSIONER REMICK: It's my 16 understanding all plants have. 17 MR. J. MARTIN: Well, the others, I guess-18 I hadn't thought of that, but I think that's right. 19 Whether that kind of turbulence -- you know, it's been 20 my experience it takes a number of years to actually 21 consolidate these kinds of gains and sometimes -j i 22 changing a key player just upsets the'whole balance. 23 I'm-worried about that, but I don't know and I just 24 don't have enough time to judge. 25 DOCTOR MURLEY: We will, of course, keep NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 2344433 WASHINGTON, D.C. 20005 (202) 2344433

i

• ~

.o '35 1 an eye on the plants. 2 Jim Milhoan will talk about Region IV 3 plants. 4 MR. MILHOAN: Good morning. 5 The South Texas project, a two unit PWR 6 located approximately 90 miles south / southwest of 7 Houston, Texas, had declining performance during the 8 last two systematic assessment of licensee performance 9 periods, stemming mainly.from material condition and 10 housekeeping, human performance and organizational 11 performance. 12 The SALP report issued in October of 1992-13 noted that additional management attention was 14 required to prevent further decline. We encouraged 15 management to consider six items. First,.to improve 16 material condition by resolving longstanding equipment P 17 problems, including providing necessary maintenance 18 support to balance the plant systems. 'Second, to 19 provide effective guidance and support to plant-20-operations.

Third, to improve work control and 21 coordination.

Fourth, to reduce unnecessary 22 engineered safety features.actuations and to further 23 reduce personnel errors that resulted in plant l

24 challenges. Fif th, to increase management involvement 25 in day to day operations and supervisory presence in NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS - 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHINGTON. D.C. 20005 (202) 234 4433

36 1 the plant. And

lastly, to assess the overall 2

effectiveness of various improvement initiatives. 3 . Performance continued to decline at STP since the last 4 senior management meeting. 1 i 5 Actions taken by the licensee to improve 6 implementation of the corrective action program and 7 other licensee programs was not effective. Several 8 senior management changes have recently been made at 9 South Texas. Among them are the group vice president 10 nuclear, the vice president nuclear operations and the 11 vice president nuclear engineering. In addition, a 12 new position, that of vice president nuclear support, 13 has been added. Because these changes are recent, it 14 is too early to tell the effectiveness of the changes. 15 STP has been issued five civil penalties 16 totalling $500,000.00 since the last senior management' 17 meeting. A diagnostic evaluation team reviewed the 18 situation at South Texas subsequent to the last senior 19 management meeting which was held in January. The DET 20 identified performance deficiencies in the: areas of 21 operations, maintenance and testing, and engineering l 22

support, and found. weaknesses in management that l

23 contributed to these deficiencies. The team found 24 that, although management had been aware of many of 25 the problems for some time, they had not been NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1?23 RHODE ISLAND AVENUE, N W. (202) 234 4433 WASHINGTON. D.C. 20005 (202) 2344 433

37 1 1 effective -in resolving underlying root causes ~ and 2 bringing about improved performance. 3 Specifically, - the team found that the 4 staffing levels in operations were strained. The 5 planning and scheduling and work control process was 6 ineffective and inefficient. Deficiencies existed in f 7 maintenance craft training and skills. The material 8 condition of some equipment was~ poor. The system t 9 engineering program was ineffective. Problem 10 identification and root cause determinations and 11 corrective actions for some equipment failures were 12 inadequate and management had not provided effective ~ 13 direction or support. 14 The team documented four root causes of' 15 the problems at South Texas:

first, failure of 16 management to provide adequate support;

second, I

17 ineffective management direction and oversight; third, 18 failure to ef fectively utilize self-assessment' and 19 quality oversight functions; and

lastly, an 20 ineffective root cause and corrective action process.

t 21 Houston Lighting and Power has been 22 requested - to provide the EDO with its plans for. i 23 addressing root causes of performance ' deficiencies 24 within 60 days of the DET report which was issues June-25 the 10th. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHINGTON, D.C. 20005 (202) 2344433 -lS s

a; 38 1 In

addition, before restart can be 2

considered.for Units 1 and 2 which are currently in 3

outages, resolution of items addressed in my 4

confirmatory action-letters and a readiness to resume 5 operation must be verified. 6 An oversight panel composed of managers 7 from Region IV and NRR has been established to assure-8 a consistent Agency approach to issues being 9 identified,- to schedule significant meetings and 10 inspections, to assure that concerns of different NRC 11 offices are properly addressed, and to assure proper 12 ' coordination of follow-up of issues identified by the 13 DET. 14 In summary, the NRC decided to place the 15 South Texas plant on the NRC's watch list as a l 16 category 2 plant in view of its performance problems. 17 In addition to our other ongoing interactions with the 18 licensee, the EDO, the Director of NRR, and I plan to 19 meet with Houston Power and Light Company's Board of 20 Directors in August to discuss South Texas issues. 21 In a recent meeting with me, -the group.. 22 vice president. has indicated that his staff is 23 reviewing each DET issue including how each issue may -24 impact restart. He indicated that it'was necessary 25 for them to have a good understanding of the depth of NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. (202) 2344433-WASHINGTON. D.C. 20005 (202) 2344433

39 1 the DET issues when preparing for restart. He further 2 indicated that South Texas took the DET report 3 seriously and needed to integrate lessons learned in 4' its business plan to assure resources are consistent 5 with management expectations and 'long-term good l 6 performance is achieved and-maintained. 7 This concludes my discussion of South 8 Texas. 9 CHAIRMAN-SELIN: That's a pretty 10 devastating management report. It's a funny plant. + 11 I mean, they had a lot of trouble during construction + 12 and yet at one point it was a rather well operated l i 13 plant. Is it your opinion that management understands 14 how deep these problems run and what kind of depth of 15 commitment -- that they're not going to just turn this 16 around with a few quick things overnight? 17 MR. MILHOAN: Based upon my interactions i 18 with senior STP managers, it's my belief that they are 1 19 taking the report very seriously. It's also my 20 opinion'that they will actively look at these issues 21 and address the root causes of these issues. - It [ 22 remains to be seen the implementation of their 23 effectiveness of what they address the issues. But I I appear to be committed to 24 do think they are 25 correcting the problems. { NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 234-4433 J

j 40 ~ 1 CHAIRMAN SELIN: Disaffection of the work j 2 force is reflected in all kinds of allegations at all 3 levels. It seems to be pretty deep. Do you see steps 4 being taken to come to grips squarely with.that?- i 5 MR. MILHOAN: I see indications of that. 6 I see outside management studies being. conducted of 7 different parts of the organization at STP. I see 8 them looking at employee concerns issues. We will 9 follow up on their look at the issues prior to I 10 considering restart of the units. 11 CHAIRMAN SELIN: Could I ask you and.Mr. 12 Ebneter a question? 13 Entergy has been one of the best run 14 utilities for awhile, and to see one of their plants 15 come on the good performer:s list is very satisfying, 16 but they have lost a lot of people to a lot of other 17 companies, which I guess is a kind of a terrific- ) i 1 18 compliment. But are they doing okay? Are they 19 filling in the gaps? The plants fall between your 20 two -- 21 MR. EBNETER: From my standpoint, yes. We I 22 had a major meeting with Entergy, Don Hintz who 23 replaced Bill Cavanaugh, and you're absolutely right,. 24 they've lost a lot of senior level people. We have 25 not seen any major impact on that yet. At the last l ) NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N W. I (202) 2344433 WASHINGTON. D C. 20005 (202) 2344433

s s 41' they're very goal-oriented,

l meeting, performance 2

performance-oriented and they stick pretty much to it. 3 It seems as though they have.a good succession plan 4 and I have not.seen any impact yet. 5 MR. MILHOAN: I would agree with those 6 comments. I see them developing people from within s 7 the organization, plus I also see not a hesitancy to 8 bring in good people from outside to their 9 organization. 10 CHAIRMAN SELIN: Good. Thank you. 11 DOCTOR MURLEY: Mr. Chairman, we, at our 12 senior management meeting, have always-discussed 13 plants that we felt were trending downward. This 14 time, of course, the Commission felt it was important' 15 enough to ask us to identify those plants and we have 16 done that, and we felt that we should mention-it'to 17 the Commission at this meeting. This is a new feature 18-of these briefings. 19 Jack-Martin will tell you about Perry. 20. MR. J. MARTIN: Yes. The Perry plant is: 21 a single unit, BWR-6. There's a second plant on the 22 site that was never completed. ,J'. began commercial 23 operation in late 1988. It's located on Lake Erie, 24 just east'of Cleveland. 25 In the last year or so, there-have been NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 9 1323 RHODE ISLAND AVENUE, N W. (202) 234 4 433 WASHINGTON, D.C. 20005 (202) 234-4433

w 42 l' several issues at Perry requiring increased NRC staff 2 attention. Among these are repeated failure of the 3 main steam isolation valves to pass the leak test 4 criteria. The motor-operated valve program was found 5 quite deficient and an additional

feature, this 6

problem was that it had been previously pointed out by 7 their own QA staff and nothing much had been done 8 about it. 9 During the third refueling, a reactor fuel 10 assembly was improperly installed in the core. This 11 was later found in reviewing some videotapes after the 12 plant had resumed operation and'they had to shutdown 13 and disassemble the reactor and fix this problem. 14 Engineering -evaluations of equipment 15 problems have not always been adequate. We've had 16 quite a few problems with that. 17 But most significantly a recent issue came l 18 up involving the fouling of the emergency core cooling-19 system strainers. Also the strainers that serve the 20 RCIC suction were fouled. The' company was very slow 21 to recognize this as a significant safety issue and 22 slow to take-corrective action. But most vexing is 23 after this problem was fully. developed and everybody 24 recognized it as a problem and recognized how 25 sensitive the plant is to debris and the containment,- NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 234 4433 WASHINGTON, D.C. 20005 (202) 234-4433

43 1 our resident inspectors found a couple of small trash 2 cans full of plastic and that sort of thing in the 3 containment =after it was declared clean. 4 I reviewed our SALP evaluations.the'last 5 few years and the latest SALP.was last fall and it 6 indicated a downturn. 7 On the other

hand, the company.has 8

completed an internai self-assessment. That was 9 pretty hard hitting and found three major conclusions: 10 lack of well understood standards; ineffective 11 communications within the company; and a-lack of 12 common goals and values. On the 21st of June, just 13 this week, a major reorganization was announced and l 14 most of the department heads were replaced with proven 15 managers either from Davis-Besse or easewhere within 16 the Perry organization, which' is quite a major move 17 for that company. They are also planning ~a major 18 self-diagnostic this summer. 19 Because of the problems at Perry and their 20 duration, we decided to classify or the staff decided 21 to classify Perry as a plant that was ' trending i 22 inadversely and merited early notification of the 23 senior manager's concerns. 24 CHAIRMAN SELIN: It's interesting that the 25 weaknesses at Perry. -in many ways mirror in an NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. G02) 2' 4433 WASHINGTON, D.C. 20005 (202) 2344433

44 1 asymmetrical fashion.some of the strengths at Davis-2 Besse,.a.very good motor-operated valve program that 3 they have there, very tough self-assessment, et 4 cetera. 5 MR. J. MARTIN: Well, I visited Perry very 6 early in my tours of the plant and the next stop was P 7 Davis-Besse and it was hard to believe you were at the 8 same compa'ny. 9 CHAIRMAN SELIN: Tha t. ' s the end of the 10 list. 11 DOCTOR MURLEY: That's the end of the 12 reactor discuss' ion. 13 CHAIRMAN SELIN: Why don't we open 'to 14 general questions. t i 15 Commissioner Remick?- 16 COMMISSIONER REMICK: I'd just go back to 17 one for you, Jim. On previous occasions where we've 18 discussed the diagnostic examinations, I have pointed 19 out a criticism I've heard. I can't say that I know 20 that it's absolutely true, but a criticism that'in' 21 making'the findings we're sometimes not careful to relate those find' ngs to either regulations or safety l. i 22 23 and therefore it's difficult for licensees to put the ~ 24 findings in the priority perspective. I certainly 25 think it's appropriate in the case of'a DET to make NEAL R.' GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N.W. (202) 234 4433 WASHINGTON, D.C. 20005 (202) 234-4433

o 45 1 observations and so forth, but we should clearly 2 distinguish between. our observations and i 3 recommendations that are general, not necessarily tied 4 to regulations and safety. 5 I have not had an opportunity yet to read 6 the report in this case. But based on your reading of 7 the report, are there any areas where we. feel that 8 perhaps we have not carefully clarified when we make 9 findings and recommendations whether they're tied to. E 10 our regulations and their safety or these are general 11 observations or recommendations for consideration? 12 MR. MILHOAN: I guess to answer that 13 question, of course the nature of the report is a 14 diagnostic report. It's not a normal inspection i 15 report. So, the format and the content of it would 16 certainly be different. Any subsequent enforcement 17 action out of the DET report would be handled through 18 our normal inspection

process, our follow-up 19 inspection process.

So, I see a difference in the 20 format and content of the report that doesn't lend 21 itself to directly tying into each individual. 22 regulation. 23 MR.- TAYLOR: This report is very 1 24 performance directed and has examples'of performance -j l 25-issues wherever it indicates a point of weakness in NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. I (202) 2344433 WASHINGTON, D C. 20005 (202) 2344433

~ . ^ 46 1 the performance. Some of those may or may not reach 2 an enforcement level, but I believe this report is 3 fairly thorough. 4 COMMISSIONER REMICK: I wasn't thinking 5 nece'ssarily of enforcement. 6 MR. TAYLOR: No, I understand.. But you s 7 asked to the regulation base itself._ 8 COMMISSIONER REMICK: Yes. t 9 MR. TAYLOR: But.this report is heavily 10 performance and has in most cases examples of issue *, 11 to relate to the discussion of performance. Some of 12 those aren't very -- and that's a regional -- after 13 the team completes its work, then the region takes and 14 evaluates that with regard to the specifics of 15 violation of a regulation as such. So, that's the 16 process, but it is -- I commend.it. If you haven't 17 had a chance to look at it, I; commend it. to ' your _ ~ ' 18 reading it. 19 COMMISSIONER REMICK: I will. 20 MR. TAYLOR: It's, I think, a.very well 21 done report. 22 Tom, you've read it. I think it's -- 23 DOCTOR MURLEY: Yes. Perhaps we need to 24 go back and look for some of the examples that you 25 mentioned, Commissioner, because our

intent, of NEAL R. GROSS

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3 j 47 1 course, is to focus on the safety, the operational 2 safety performance. If something doesn't really bear 3 on that, then we need to probably edit that kind of 4 stuff out of their reports. But a diagnostic report 5 of operational safety necessarily, I think, gets into 6 management questicas. So, there will be some of that 7 in these reports, I'm sure. 8 COMMISSIONER REMICK: Yes. I'm not sure 9 it would be proper to edit it out because I think 10 those observations and so forth can be helpful. But 11 the thing that I've heard is that people have -- since 12 they have to respond to this and also certain things 13 will enter into a question of when they can start up, 14 and some of these things are helpful observations but 15 they're not necessary to be completed necessarily for 16 start-up or maybe even be changed. 17 MR. TAYLOR: We agree with that. 18 COMMISSIONER REMICK: The other comment 19 that I heard from one of the more recent DETs before 20 this was that at the exit of the DET and discussing 21 some of the observations, additional information was 22 provided which basically caused the finding not to be 23 true or necessary. 24 MR... TAYLOR: Not be valid. 25 COMMISSIONER REMICK: Valid, thank you. i i NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 2344433 WASHtNGTON, D.C. 20005 (202) 2344433

s 48 i 1 That's the word. But that it still remained in the 2 report. So then people at the plant had to go through 3 the process of answering in writing what they had 4 provided at or during the DET or at the exit. Of 5 course, to provide a response, it has to go through a 6 lot of change of channels and so forth. 7 MR. TAYLOR: That doesn't make sense. If 8 that could be identified to me, I'll make it sure it 9 doesn't happen. 10 ' COMMISSIONER REMICK: Okay. Fine. And as 11 a result, when it comes to the Commission, the staff 12 goes through a process of reviewing those and so forth ^ 13 and channels and that there's a spinning of wheels 14 unnecessarily for things that perhaps were answered at 15 the time. 16 MR. TAYLOR: That's certainly not our i 17 intent and if it's happened, if I could have the i 18 specifics, I'll share that. i I 'l 19 COMMISSIONER REMICK: Okay. 20 MR. TAYLOR: Wherever possible, we don' t-- 21 COMMISSIONER REMICK: I'm hoping that -- 22 and I fully support the DET and the value of the .23' diagnostic examination, but I think we do have to be 24 careful that we're clear what are the important items 25 and what are our helpful suggestions and so forth that NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. (202) 234443? WASHINGTON, D.C. 20005 ' (202) 234-4433

-)

1 49 1 we're making so that people know what is necessary to-2 respond to and what's necessary for start-up. 3 MR. MILHOAN: In this case we're going to 4 start having periodic meetings with South Texas to 5 assure that the issues are firmly understood and if 6 there's any type of that situation, that it comes up 7 very early in the process. 8 COMMISSIONER REMICK: Thank you. 9 CHAIRMAN SELIN: I'd like to ask you a 10 little more generic question, Doctor Murley. We have 11 both more poor performers and more good performers 12 sitting here.today than we've had for a little while 13 on the Aist. Do you think the plants are tending to 14 diverge a little bit or is it.just a statistically 15 insignificant fluke or are we getting a little quicker 16 to pick out both good and bad trends? Is there any 17 generality geared to that? 18 DOCTOR MURLEY: Yes. Well, there is a 19 trend that I notice and that is there are more plants 20 performing better today than ever and I think that 21' when the management attention of a utility is directed 22 and dedicated toward improved performance, that it is 23 effective. We've seen that time and time again. 24 But there's also another thing at work f 25 here and it reminds me of a statement that former NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. 1 (202) 7344433 WASHINGTON, D.C. 20005 (202) 2344433 ~

50 1 Chairman Carr made to one of our House oversight 2 committees and it is that the nuclear business is not 3 one where you can get things operating smoothly and 4 then just 'let them continue to run smoothly. You have 5 to pay constant attention to the performance of a 6 nuclear plant and its management systems and things.- 7 What's happened in these plants where they 8 do get on our watch list is that the management.has 9 not paid attention and let-performance drift. Now,. 10 the reasons behind that I just can't -- I don't see 11 any common reason why they've done that. But I think' 12 it's fair to sa'y that that has happened. 13 CHAIRMAN SELIN: Mr. Taylor? 14 MR. TAYLOR: We have one additional very 15 short subject. Doctor Paperiello will cover it. If 16 there are any questions, Jim Milhoan will talk about 17 it. This is on the materials side, material and fuel 18 facilities. 19 Doctor Paperiello? 20 DOCTOR PAPERIELLO: There has been one 21 facility, Sequoyah Fuels, on the priority materials 22 facility list. With-the permanent cessation of 23 operations at Sequoyah Fuels and its intent-to 24 decommission, the staff is planning to remove this r 25 facility from the priority materials facility list. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBEPS 1323 RHODE ISLAND AVENUE, N.W. (202) 234 4 33 WASHINGTON, D.C. 20005 -(202) 234-4433

E-51 1 But the staff is switching its focus-to proper. l 2 decommissioning and Sequoyah Fuels will become an SDMP 3 facility. 4 That's my presentation. 5 MR. TAYLOR: And for the-public, I'd say 6 the SDMP is the site decommissioning management plan, 7 a special plan, which the Commission is well aware of, 8 within the staff. 9 CHAIRMAN SELIN: Even with footnotes,. 10 Doctor Paperiello, you reached a new level of 11 concision. 12 COMMISSIONER REMICK: Just a question of 13 Carl. 14 I assume that what we will use for 15 criteria are the e::isting branch technical positions 16 and reg. guides and so forth that are available we've 17 used in the past until we -have decommissioning 18 criteria? 19-DOCTOR PAPERIELLO: i have somebody from 20 my staff that can answer that. 21 MR. TAYLOR: This is Doctor John Austin 22 from the staff. 1 23 DOCTOR PAPERIELLO: Who is doing the 24 review. 25 DOCTOR AUSTIN: Yes. That plant was NEAL R. GROSS l I COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE, N W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 2344433

52 'l recently shifted from the Fuel Cycle to 2 Decommissioning and Regulatory Issues Branch for 3 purposes of decommissioning. Sequoyah Fuels has 4 proposed to remediate their site'by being declared an-5 11(e) (ii) site. They therefore used Part 40, Appendix 6 A. 7 CHAIRMAN SELIN: Do you wa'.it to translate 8 that to English? 9 DOCTOR AUSTIN: Mill tailings. They want 10 to be treated like a mill tailings -- 11 CHAIRMAN SELIN: We've been calling them 12 a mine all these years and they finally recognized it? 13 DOCTOR AUSTIN: Yes. And we have a legal 14 opinion that says they cannot do that. So,.at this 15 point, 'we would intend to apply existing criteria in 16 the action plan, but that has strong ramifications on 17 the cost. The cost that they estimate for remediating 18 the site are dependent on constructing a cell like a 19 mill tailings unit. If we were to apply the criteria 20 in the action plan,- the cost likely would be 21 substantially greater. 22 COMMISSIONER REMICK: Action plan? Which-23 action plan? 24-DOCTOR AUSTIN: The site decommissioning 25 management plan, action plan. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS .l 1323 RHODE ISLAND AVENUE, N.W. .l (2 @ 234 4 33-WASHINGTON, D.C. 20005 ~ (202) 234M33

6 c. 53 i~ 1 COMMISSIONER REMICK: Site -- okay. 2 DOCTOR AUSTIN: Because they are now 3 listed on the SDMP. But that's one of the early 4 decisions that we need to make on this case because 5 the remediation criteria will drive the cost. 6 MR. TAYLOR: Because of the importance of 7 this, we will keep the Commission closely ' advised 8 before decisions are made. 9 CHAIRMAN SELIN: Well, if I might just 10 follow-up on Commissioner Remick's point, the SDMP and 11 things like that are really for our convenience. 12 There's an enormous amount of flexibility given the 13 staff and the Commission about just how to carry these 14 pieces out. So, I assume we're going to be driven by 15 the site specific safety and environmental issues and 16 not taking something that was designed for really a 17 much smaller facility and just mechanically scaling it 18 up to meet the -- 19 DOCTOR-AUSTIN: Yes.- As you'll recall, 20 the action plan does allow fdr consideration of ALARA, 21 as low as reasonably achievable. And if that analysis 22 supports something of less. stringency than 23 specifically identified in the action plan, then we i 24 would seriously consider that. q 25 CHAIRMAN SELIN: Yes. I'm not. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W. (202) 234-4433 WASHINGTON, D.C. 20005 (202) 2344433 'f

e-t 54 1 recommending any particular standards, but that plant 2 is really suigeneris and I hope we look at it in the 3 context of our regulations, but with a fair amount of 4 attention to the specifics of the -- and there are all 5 kinds of materials in that

plant, not just 6

radiological. So, we're going.to need a plan that 7 meets the needs of all of the -- 8 MR. TAYLOR: EPA and NRC. Yes, we're very 9 conscious of that. i 10 CHAIRMAN SELIN: Yes. And there should be j 11 one single remediation plan that takes care of 12 everybody and can -- 13 IIR. TAYLOR: We're cooperating with EPA. j 14 DOCTOR AUSTIN: With EPA. We are 15 developing a memorandum of understanding with EPA on 16 this case. 17 CHAIRMAN SELIN: Thank you. .i 18 Commissioner de Planque? 19 MR. TAYLOR: ~That concludes our -- 20 CHAIRMAN SELIN: This' was a very good 21 presentation. I think-I'd like to follow-up just on 22 Doctor Murley's point, which is that the differences 23 in performance really can't be explained by 24 differences in engineering and physical condition, et 25 cetera, and that complacency really is the enemy. NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 1323 RHODE ISLAND AVENUE. N.W.- (202) 2344433 - WASHINGTON. D.C. 20005 _ (202) 2344433

.-s' 55 1 Like South Texas just came;off a world record run'and 2 it's not out of the question that the length of that 3 run might have hidden from both them and us problems 4 that'were building up along the way. 5 So, you're to be commended for really.the 1 6 clear-eyed hard hitting approach that you've taken and 7 we, the licensees and general public are well, served 8 by this continued vigilance, even as we put a lot of 9 effort inte the future since this is the basis on .10 which all of the future depends. 11 Thank you very much. 12 (Whereupon, at 10:42 a.m., the above-13 entitled matter was concluded.) 14 15 i 16 17 18 19 20 21 I 22 23 .l 24 25 NEAL R. GROSS COURT REPORTERS AND TRANSCRIBERS 7 1323 RHODE ISLAND AVENUE, N.W. ,l (202) 2344433 WASHINGTON D.C. 20005 (202) 2344433 ]

CERTIFICATE OF TRANSCRIBER 'I This is to certify that the attached events of a meeting i of the United States Nuclear Regulatory Commission entitled: TITLE OF MEETING: PERIODIC BRIEFING ON OFF3ATING REACTORS AND FUEL FACILITIES PLACE OF MEETING: ROCKVILLE, MARYLAND DATE OF MEETING: JUNE 25, 1993 were transcribed by me. I further certify that said transcription is accurate and complete to the best of my ability, and that the transcript is a true and accurate record of the foregoing events. n 3 Reporter's name Peter Lynch r I i. L .i i-I i HEAL R. GROSS l Count espoefses AMD faAMScateens 1333 RMoes ISLAND AVEMUE, M.W. gsgry gs4 4 ass WAsMIM890M. DA 20005 (202) 232 6

e ' i L PERIODIC BRIEFING ON, OPERATING REACTORS AND MATERIAL FACILITIES June 25,1993-J. Taylor T. Murley R. Bernero 1 Regional Administrators ~ ...~.._.~.___, ~.

CKfEGORY 1 PLANTS REMOVED FROM THE LIST OF PROBLEM FACILITIES i Plants in this category have taken effective -action to correct identified problems and to l implement programs for improved performance. No further NRC special attention is necessary beyond the regional office's current level of . monitoring'to. ensure improvement continues. 4 NONE, e e t .-u m e. m

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CATEGORY 2 u PLANTS AUTHORIZED TO OPERATE THAT THE NRC WILL MONITOR CLOSELY l 1 Plants in this category are having or have had weaknesses that warrant increased NRC attends. from both headquarters and the regional ote. A plant will remain in this category until the licensee demonstrates a period of improved performance. BRUNSWICK:1- & 2 - DRESDEN 2 & 3 FITZPATRICB INDIAN POINT 3 SOUTH TEXAS 1. & 2 3-m.' m. m m -u m ..-ame e- ...e== .e.va.. e rue-++ wes.m-wewn v-nm+ r w a.,w e a. 4.ns>ew.-.sw w e-u ar e - u e

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CATEGORY 3 SHUTDOWN PLANTS-REQUIRING NRC AUTHORIZATION TO' OPERATE AND WHICH THE NRC WILL MONITOR CLOSELY Plants in this category are having or have had significant weaknesses that warrant' maintaining the plant in a shutdown condition.until the licensee a can demonstrate to the NRC that. adequate programs ~ have both been established and implemented to o ensure substantial improvement. BROWNS FERRY 1 & 3 4- - i. -.. +-2 .-.+...-,r- ..u, .re--.-r--,-,3 ---e. -ve.= c. .u,-.4.e.-. . ~..w -wn--.-. ,,,--*wis 4,.mu

y, L. PRIORITY MATERIAL FACILITIES ~ i GENERAL ATOMICS --SEQUOYAH FUELS - GORE, OK i i -l 5-j .. m 1 ._,___________m__.__m.___ ...m rm,,, _,. _ _ m ,,_m. _,~., .c y ,,,,r,., g g.,, ,y.,

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