ML20137X503

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Testimony of Hs Phillips Re Discovery of Quadrex Rept. Related Info Encl
ML20137X503
Person / Time
Site: South Texas, 05000000
Issue date: 06/25/1985
From: Phillips H
NRC
To:
Shared Package
ML20137X502 List:
References
FOIA-85-519 NUDOCS 8603100110
Download: ML20137X503 (10)
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{{#Wiki_filter:, e, OC*;5 65 DN!! r F*.-r tet t-f t 4E E to.001 001 - .%d 4, : Shm N:Ig p, _ y, fe en E4A 88 $/7-797-fyt PMW454r Fm, i o e UN!TED $TATES Or AMERICA 7'I A ## NI b't 8d'er J NUCLEAP REGULATORY C0f91155!ON /& Jhi&df BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of HOUSTONLIGHTINGANDPOWERCOMPANY.h Docket Nos. 50-498 / E g. J 50-499 i (SouthTexasProjer'.Unfts1A2)h NRC STAFF TESTIMONY OF H. SHANNON PHILLIPS REGARDING H!$ DISCOVERY OF THE QUADREX REPORT Q1. Please state your nare, affiliation, and pobition. A1. My name is H. Snannon Phillips. I am presently the Senfor Resident Inspector (Constru,ction) at Comanche Peak Steam Electric Station. Q2. Have you been affiliated with the South Texas Nuclear Project? A2. Yes. From September 1979 through January 11. 1982 I was the Senior Resident Inspector (Construction) at the South Texas Nuclear Project (STP). Q3. Have you previously testified in this South Texas proceeding? A3. Yes. Q4. Have you prepared a statement of your professional qualifications? A4. Yes. A statement is attached to this testimony. Q5. When did you first learn about the Quadrex Report? AS. I learned about the Quadrex Report on August 18 or 19th,1981. Q6. What were the events leading up to your discovery of the Quadrex Report? 8603100110 060106 DE 19 PDR e

c n 09:5 e5 can to:-rp-mFE 10.001 002 2 A6. In late 1980 or early 1981, I noticed that HL&P had filed a large number of 10 C.F.R. 80.55(e) construction deffetency reports and a high percentage appeared to be related to engineering. HL&P audits ofBrown&RootInc. Engineering (BAREngineering) had also identified a number of problems. On April 25, 1981, ! had interviewed an engineer at the STP site who stated that BAR construction activities had improved on site but that its design work for the project at its Houston. Texas office had numerous deficiences. As a result of these apparent problems at STP, I verbally requested my office to conduct a special inspection of Brown & Root s . T'#+, Engineering in early April 1981. On May 27, 1981. I wrote a memorandum to further request that this inspection be done. During the week of May 11, 1981. Mr. Don Sells NRC Project Manager for ST nd I were at the A$L8 hearings in Bay City. Texas. He asked about the project and I told him about the potentially adverse trend identified at 84R Engineering and that I had verbally requested a special NRC inspection of all 84R Engineering. Mr. Sells then informed me that he recently had a discussion with Mr. Jerry Goldberg, HLAP Vice President of Nuclear Engineering and Construction, who told him that several 10 C.F.R. 50.55(e) reports afght be forthcoming as the result of a consultant's study of 84R Engineering. I do not recall hearing the name of the consultant during this conversation, although at the time I would not have been At

~ 06 45'85 09:24 t F C-t titi-t1GB PC.001 003 3 concerned about its identity because ! believed the NRC special inspection would include a review of the consultant's work. Q7. Did the NRC perfo m an inspection as you requested? A7. Yes. An inspection was done during the sumer of 1981 by the Region IV Vendor Inspection Branch. Q8. Did this inspection include reviewing the Quadrex Report? A8. Mo. Q9. How did you learn about the Quadrex Report? A9. In early August 1981, as a result of new allegations from an anonymous HL&P employee, Region !Y Management asked me to participate in an 0! investigation of alleged problems with 88R Engineering at Houston, Texas. Prior to participating in this investigation, I called Mr. Dan Fox, the MRC inspector previously assigned to inspect the 84R AE organization. ! learred what he had found during his inspection in the suener of 1981 (as part of the Region !Y Vendor Inspection Branch inspection) and decided that additional informattor should be obtained during the O! investigation. On August 18, 1991, Mr. Dick Herr, NRC Investigator, and I went to HL&P offices at Senbrook, Texas, as part of this 0! investigation. At that time, I made a broad request for all documents such as letters, memoranda, studies, reports, audits, reviews, inspections, or other materials which could identify adverse conditions at SSR Engineering. On August 19, 1981 Mr. R. Frazer, HL&P QA Manager, produced the Quadrez Report. He said the report was considered company A 1-

s %. 06 25 es e9c5 in-nt,n-mse ro.oci 004 4 confidential and was strictly controlled. He stated I was welcome to read it, but that I could neither remove it from the offices nor reproduce any part of it. Due to the volume of material, I was unable to review the report during this investigation, which is documented in NRC Investigation Report 81-28. Q10. Did you subsequently review the Quadrex Report? A10. Yes. When I returned to the South Texas site on Monday August 24, 1981, I was told I could read the report. I received a copy of this report on Au p st 25, 1981 and reviewed it while at the site. On August 27, 1981, I briefed Region IV management as w thf; :.ttr. d2-1

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