ML20137C024

Responds to 900911,re Petition Concerning Management of Gpc Illegal Transfer of Facility Operating Licences to Southern Nuclear Operating Co.Petitioners Request for Action Pursuant to 10CFR2.206 Denied

ML20137C024
Person / Time
Site:	Hatch, Vogtle
Issue date:	03/18/1997
From:	Miraglia F NRC (Affiliation Not Assigned)
To:	Kohn M KOHN, KOHN & COLAPINTO, P.C. (FORMERLY KOHN & ASSOCIA
Shared Package
ML20137C029	List: ML20137C024 ML20137C238 ML20137C258 ML20137C426
References
CON-#297-18216 2.206, DD-97-06, DD-97-6, NUDOCS 9703240131
Download: ML20137C024 (6)

Text

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UNITED STATES l

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NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. segeMeet

%***** March 18,1997  !

t Michael D. Kohn, Esquire i

Kohn, Kohn & Calipinto 3233 P Street, NW.

Washington, DC 20047

Dear Mr. Kohn:

This is in response to the September 11, 1990, " Request for Proceedings and i

Imposition of Civil Penalties for Improperly Transferring Control of Georgia Power Company's Licenses to the SONOPCO Project and for the Unsafe and leproper Operation of Georgia Power Company Licensed Facilities," (Petition) that you filed with the U.S. Nuclear Regulatory Commission Messrs. Marvin Hobby and Allen Mosbaugh (Petitioners), pursu(NRC) ant to Section on behalf of 2.206 of Title 10 of the Code of Federa? Regulatfons (10 CFR 2.206). You supplemented 1990, and Julythe Petition with submittals made on September 21 and October 1, 8, 1991.

The Petition contained allegations regarding: the management of the Georgia Power Company (GPC) nuclear facilities; illegal transfer of GPC operating licenses to Southern Nuclear Operating Company (SON 0PCO); intentional false statements to the NRC regarding GPC's organizational chain of command and the 2

reliability of a diesel generator; perjured testimony submitted by a GPC l executive during a DOL proceeding under Section 210 of the Energy Reorganization Act; repeated abuse at the Vogtle facility of Technical

' Specification 3.0.3; repeated willful technical specification violations at

! the Vogtle facility; repeated concealment of safeguards problems from the NRC; operation of radioactive waste systems and facilities at Vogtle in gross 4

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violation of NRC requirements; routine ner'onservative and questionable management practices; and retaliation by U C against managers who make their regulatory concerns known to GPC or SON 0PC0 management. The supplements to the Petition of September 21 and October 1,1990, forwarded exhibits and provided additional information regarding the alleged illegal transfer of operating licenses. Based on these allegations, Petitioners requested that the NRC institute proceedings and take swift and immediate action.

The July 8,1991, supplement to the Petition repeated several of the earlier allegations, and also alleged that GPC's Executive Vice President made material false statements in GPC's April 1,1991, submittal to the NRC that responded to allegations in the original Petition. The supplement also alleged that false statements had been made to the NRC by the same individual during a transcribed meeting on January 11, 1991, to discuss the formation and operation of SONOPCO. Based on these allegations, Petitioners requested the NRC to take issediate steps to determine if GPC's current management has the requisite character, competence, fundamental trustworthiness, and commitment to safety to continue operating a nuclear facility.

9703240131 970318 OFoi g= ^=c k ===

_ NRC FIE CENTER COPY

9 , i Michael D. Kohn, Esquire March 18, 1997 l

Several issues in the Petition were further defined and reviewed in connection I with the licensing proceeding before the Atomic Safety and Licensing Board (Docket Nos. 50-424-OLA-3; 50-425-OLA-3) regarding GPC's application for license amendments to transfer operating authority of the Vogtle facility to Southern Nuclear Operating Company (SON 0PCO), and proceedings before the U. S.

Department of Labor (DOL) as a result of separate discrimination suits filed by Messrs. Hobby (DOL Case No. 90-ERA-30) and Mosbaugh (DOL Case Nos.

91-ERA-001 and 91-ERA-Oll). Although the licensing proceeding concluded without a final Board decision (when the parties settled and Mr. Mosbaugh withdrew as sole intervenor), consistent with the Commission's guidance in CLI-93-15, 38 NRC 1 (1993), the NRC staff has considered the issues raised in the license transfer 2roceeding in reaching decisions on the 10 CFR 2.206 l Petition. Further, wille Mr. Mosbaugh has withdrawn his interest in the  !

Petition, Mr. Hobby's request is still pending before the NRC and is the basis for this correspondence. In addition, decisions of the Secretary of Labor regarding the discrimination suits of Messrs. Hobby and Mosbaugh have formed ,

the basis for NRC enforcement action.

As discussed in this Director's Deci:, ton, I find that certain concerns raised 4

by the Petitioners are partially substantiated. Violations of regulatory I requirements have' occurred in the operation of the Vogtle facility. A number I of violations were identified and three civil penalties have been issued to GPC for certain of these violations. The three civil penalties resulted from (1) opening a valve when it was required to be closed by the Vogtle Technical Specifications to protect against a potential " boron dilution" event (2) providing inaccurate and incomplete information to the NRC regarding diesel generator testing, and (3) violating 10 CFR 50.7, " Employee Protection," by discriminating against Messrs. Hobby and Mosbaugh for engaging in protected i activities. The NRC has issued letters to GPC and to several GPC and SONOPC0 individuals reminding them of their obligations to provide information to the NRC that is complete and accurate in all material respects, and of the need to ensure a proper environment in which employees can express regulatory concerns without fear of retaliation, harassment, intimidation, or discrimination. The licensee has committed to maintain the individual who in 1990 was the Vogtle General Manager in his present position, which does not involve the supervision of licensed activities, and provide special training and notify the NRC before he will again be permitted to hold a line management position at Hatch or Vogtle. The request in the Petition that the NRC institute proceedings has been accomplished in large measure through the license transfer proceeding and through separate actions before D0L, the results of which are recognized by the NRC. To this extent, the Petitioners' request for action pursuant to 10 CFR 2.206 is granted.

Based on the staff's review of extensive information, including the results of relevant enforcement actions, I have determined that (1) no unauthorized transfer of the Vogtle operating licenses has occurred, (2) none of the issues show the licensee lacks the requisite character, competence, fundamental trustworthiness, or commitment to safely operate its nuclear facilities, and (3) actions already taken by the staff and licensee provide reasonable assurance that the facilities are being operated with adequate protection of public health and safety. Therefore, 1 decline to take any further action with respect to the issues raised in the Petition. To this extent, the Petitioners' request for action pursuant to 10 CFR 2.206 is denied.

i s a Michael D. Kohn, Esquire March 18, 1997 A copy of the Director's Decision will be referred to the Secretary for the Commission's review in accordance with 10 CFR 2.206(c) of the Comission's regulations. For your information, I also have enclosed a copy of the notice regarding this Director's Decision, which has been filed with the Office of the Federal Register for publication.

Sincerely,  ;

3 )

.4hy ank .

Frank Jf3Mirh11 r., A g Director Office 4f Nuc ea Reactor ulation Docket Nos. 50-321 and 50-366 I 50-424 and 50-425

, (10 CFR Section 2.206)

Enclosures:

1. Federal Register Notice

2. Director's Decision (DD 06 )

l cc w/ enclosures: See next page j

f b Georgia Power Company Edwin I. Hatch Nuclear Plant i ec: Vogtle Electric Generating Plant ,

Mr. Ernest L. Blake, Jr. Mr. Thomas P. Mozingo

' Shaw, Pittman, Potts and Trowbridge Program Manager - Nuclear Operations 2300 N Street, NW. Oglethorpe Power Corporation Washington, DC 20037 2100 East Exchange Place P. O. Box 1349 Mr. J. D. Woodard Tucker, Georgia 30085-1349 Senior Vice President Georgia Power Company Charles A. Patrizia Esquire P. O. Box 1295 Paul, Hastings, Janofsky & Walker Birmingham, Alabama 35201 10th Floor 1299 Pennsylvania Avenue Mr. D. M. Crowe Washington, DC 20004-9500 Manager Licensing - Hatch Georgia Power Company Mr. J. A. Bailey P. O. Box 1295 Manager - Licensing Birmingham, Alabama 35201 4

Georgia Power Company P. O. Box 1295 Mr. L. Sumner Birmingham, Alabama 35201 General Manager, Nuclear Plant Georgia Power Company Pir. J. B. Beasley P. O. Box 439 General Manager, Vogtle Electric Baxley, Georgia 31513 Generating Plant P. O. Box 1600 Resident Inspector Waynesboro, Georgia 30830 U. S. Nuulear Regulatory Commission 11030 Hatch Parkway North Office of Planning and Budget Baxley, Georgia 31513 Room 615B 270 Washington Street, SW.

Regional Administrator, Region II Atlanta, Georgia 30334 U. S. Nuclear Regulatory Commission 101 Marietta Street, NW. Suite 2900 Attorney General Atlanta, Georgia 30323 Law Department 132 Judicial Building Mr. Charles H. Badger Atlanta, Georgia 30334 Office of Planning and Budget Room 610 Arthur H. Domby, Esquire 270 Washington Street, SW. Troutman Sanders Atlanta, Georgia 30334 NationsBank Plaza 600 Peachtree Street, NE.

Harold Reheis, Director Suite 5200 Department of Natural Resources Atlanta, Georgia 30308-2216 205 Butler Street, SE., Suite 1252 Atlanta, Georgia 30334 Office of the County Commissioner Burke County Commission Chairman Waynesboro, Georgia 30830 Appling County Comissioners County Courthouse Resident Inspector Baxle j, Georgia 31513 U.S. Nuclear Regulatory Commission 8805 River Road Mr. C. K. McCoy Waynesboro, Georgia 30830 Vice President - Nuclear Vogtle Project Steven M. Jackson Georgia Power Company Senior Engineer - Power Supply P. O. Box 1295 Municipal Electric Authority Birmingham, Alahnma 35201 of Georgia 1470 Riveredge Parkway, NW

f .  ;

Michael D. K:hn, Esquire March !18, 1997 4

4 A copy of the Director's Decision will be referred to the Secretary for the -

Comission's review in accordance with 10 CFR 2.206(c) of the Comission's regulations. For your information, I also have enclosed a copy of the notice regarding this Director's Decision, which has been filed with the Office of the Federal Register for publication.

Sincerely, ,

ORIGINAL SIGNED BY::

Frank J. Miraglia, Jr., Acting Director

Office of Nuclear Reactor Regulation Docket Nos. 50-321 and 50-366 50-424 and 50-425 (10 CFR Section 2.206)

I

Enclosures:

1. Federal Register Notice

2. Director's Decision (DD 06 ) ,

cc w/ enclosures: See next page l

DISTRIBUTION:

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