ML20141A263

Final Response to FOIA Request for Four Categories of Documents Re 820308 & 0419 Meetings W/Nrc & Pg&E.Closed 820324 Commission Meeting Transcript Withheld Completely (Ref Exemption 10 of Govt in Sunshine Act)

ML20141A263
Person / Time
Issue date:	02/27/1986
From:	Grimsley D NRC OFFICE OF ADMINISTRATION (ADM)
To:	Holmes G MHB TECHNICAL ASSOCIATES
References
FOIA-85-691 NUDOCS 8604040427
Download: ML20141A263 (1)

Text

PD(l4h UNITED STATES 8, o NUCLEAR REGULATORY COMMISSION g y WASHIfJGTON, D. C. 20555

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Mr. Gregory A. Holmes MHB Technical Associates 1723 Hamilton Avenue - Suite K IN RESPONSE REFER San Jose, CA 95125 TO F01A-85-691

Dear Mr. Holmes:

This is in final response to your letter dated October 11, 1985, in which you requested, pursuant to the Freedom of Information Act (F0IA), copies of four categories of records related to the March 8 and April 19, 1982, meetings between NRC officials and officials of the Pacific Gas and Electric Company.

The search and review of documents have now been completed and one additional document has been identified that is subject to your request. The document is a closed Commission meeting transcript, entitled, " Discussion of Enforcement Action," dated March 24, 1982, and it is being withheld. The transcript discusses anticipated agency participation in litigation and is beir.g withheld in its entirety pursuant to Exemption (10) of the Government in the Sunshine Act (5 U.S.C. 552b) and 10 CFR 9.104(a)(10) of the Commission's regulations.

Pursuant to 10 CFR 9.15 of the Commission's regulations, it has been determined that the information withheld is exempt from production or disclosure and that its production or disclosure is contrary to the public interest. The person responsible for this denial is Mr. John C. Hoyle, Assistant Secretary of the Commission.

This denial may be appealed to the Secretary of the Commission within 30 days from the receipt of this letter. Any such appeal must be in writing, addressed to the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555, and should clearly state on the envelope and in the letter that it is an " Appeal from an Initial FOIA Decision."

This completes NRC action on your request.

Sincerely,

&W Donnie H. Grimsley, Director Division of Rules and Records Office of Administration go 27 860227 HOLNEss5-691 PDR

TECHNICAL ASSOCIATES TECHNICAL CONSULTANTS ON ENERGY & THE ENVIRONMENT Dale G. Bridenbaugh 1723 Hamilton Avenue-Sude K Richard B. Hubbard San Jose California 95125 Gregory C. Minor October 11y 1985 OFINFORMATWW REQUEST Mr. J. M. Felton, Director Division of Rules and Records Office of Administration

((=M ff U.S. Nuclear Regulatory Commission Washington, D.C. 20555 kd-

Dear Mr. Felton:

Pursuant to the Freedom of Information Act, please place single copies of the following documents in the NRC's Public Document Room:

I A. All notes and records of any other description prepared by, used by, given to, or distributed by NRC personnel l during the meeting of March 8, 1982, between Richard C. DeYoung and Robert Engelken of the NRC, and Fredrick Mielke, Jr., George Maneatis and Malcom Furbush of the Pacific Gas and Electric Company in the Region V offices at Walnut Creek, California.

B. All not9s and records of any other description prepared by, used hy, given to, or distributed by NRC personnel during the meeting of April 19, 1982, between Richard C. DeYoung ed Robert Engelken of the NRC, and Fredrick Mielke, Jr., George Maneatis and Malcom Furbush of the Pacific Gas and Electric Company. (I believe that this meeting was held in the offices of Mr. DeYoung, but the documentation I have received to-date does not confirm this.)

C. All correspondence, memoranda, comments, notes, reports, studies, audits or records of any other description exchanged between the NRC Commissioners, Staff, or Region V personnel and the Pacific Gas and Electric Company prior to, contemporaneous with, or subsequent to the meetings of March 8 and April 19 which are related to the meetings of March 8 and April 19 or the subject matter discussed at the meetings of March 8 and April 19.

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l Mr. J.M. Felton October 11, 1985 Page Two D. All correspondence, memoranda, comments, notes, reports, s tud ie s', audits or records of any other description internal to the NRC which are related in any way to the meetings of March 8 and April 19 or the subject matter discussed at the meetings of March 8 and April 19.

I have enclosed an NRC memo and a PG&E letter which should aid in identifying these meetings. The enclosed NRC memo from Richard DeYoung and Robert Engelken of the NRC to William Dircks of the NRC, dated March 12, 1982, describes the meeting of March

8. The enclosed letter from Fredrick Mielke, Jr., of PG&E to Richard DeYoung of the NRC, dated April 28, 1982, references the meeting of April 19 on Page 2, paragraph 4.

If you or your staff have any questions concerning this request, please contact me by telephone at (408) 266-2716. Your cooperation in responding to this request will be appreciated.

I Sincerely, 1 A. $

Gregory A. Holmes GAII:dg  !

Enclosures  !

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MEMORANDUM FOR: William J. Dircks t'

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Executive Director for Operations i

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FROM: Richard C. DeYoung. Director 'O LI Office of Inspection and Enforcement Robert Engelken, Regional Administrator Region Y

SUBJECT:

MEETING WITH THE CHAIRMAN OF THE BOARD OF DIRECTORS AND TWO SENIOR VICE PRESIDENTS OF PG&E On February 10, 1982, the Comission directed the NRC staff to issue a Hotice of Violation to the Pacific Gas and Electric Coepany (PG&E) for a Material False Statement relating to events that occurred during a November 3.1981 meeting between the NRC staff and PG&E. At the same time, the Comission directed the staff to meet with PG&E officials to discuss methods of improving lines of comunications within PG&E and between PG&E and the NRC. The Director ,

of the Office of Inspection and Enforcement issued the Notice of Violation on February ll,1982, and in the letter forwarding the Notice to PG&E  :

requested that the Chairman of the.PG&E Board of Directors meet with him within a period of thirty days to discuss the matters raised by the Comission. ,

. The meeting was held on March 8,1982 in the Comission's Region V Office in ,[

Walnut Creek, California. The meeting comenced at 3:00PM and terminated at i 5:40PM. The attendees included: ,.

The United States Nuclear Reculatory Comission Richard C. DeYoung, Jr.: Director, Office of Inspection and Enforcement -

Robert H. Engelken: Regional Administrator, Region Y Tha Pacific Gas and Electric Comoany Frederick W. Mielke, Jr.: Chaiman of the Board George A. Maneatis: Senior Vice President - Facilities Development Kalcolm H. Furbush: Senior Vice President and General Counsel The meeting consisted ainost in its entirety of a very candid and often very blunt discussion of cormunications problems within PG&E and between PG&E and the NRC that were clearly evident or perceived by the AEC and NRC over the long period of PGAE involvement in the regulatory program. Alnost without exception, the PG&E representatives readily acknowledged each comunications W

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deficiency that was raised, its probable cause, and mentioned some remedial steps that were being taken to correct the situation. The specific subjects that were discussed included:

(1) The November 3,1981 meeting that led to the Notice of Violation for a material false statement.

(2) The overall perception of PG&E by the NRC staff.

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(3) The long problem with the PG&E leadership of its Diablo Canyon project, and the clear perception of the confusing struggle for leadership ,

between high level legal annagers and high level technical managers.

(4) A review of specific instances wherein high level representatives of -

PG&E appeared incompetent, ineffective, uninformed 111 prepared, and insulting.

(5) The apparent reluctance of PG&E to comunicate in-depth with utilities that were successful in itcensing and operating plants in order to learn the " secrets of success." .

(6) The apparent problems within the PG&E engineering staff including " turf battles," lack of recognition that decisions based on engineering judgement cust be documented, the reluctance to admit that errors can be made by even Senior Engineers, the strong reluctance to question work done by expert technical consultants, and the reluctance to cocununicate between engineering departments,. ,

(7) The apparent reluctance of PG&E to initiate comunications with the NRC staff.

(8) The need to coernunicate to the PG&E staff that the Diablo Canyon project ~,

I is not a short-term effort but'a 40 year project in which a dedicated '

engineering staff will be needed to assure a safe profitable operation long after the licensing process is coglete. Short range attitudes have been a detriment to progress with the project to-date.

(9) The apparent reluctance of PG&E to provide more than the minimal response to NRC staff requests for information, and the proven benefits to other licensees who have routinely provided "100% plus" responses.

(10) The perceived poor perfomance of PG&E in connunicating with the media, nuclear power critics and the political arena.

(11) d review of ntanerous instances of poor comunications on specific technical matters; these poor coarnunications included those between PG&E and the Region V Office PG&E and NRC Headquarters and PG&E corporate and engineering management and the PG&E site contingent. -

, (12) The insensitivity of PG&E renagement to regulatory requirements and concerns.

For example, the failure to iglement quality assurance requirements consistcnt with HRC regulations with its principal service contractors until late  :

1977 or early 1978, and the failure to amend the Hosgri report when revised seismic design spectra were provided to them' by URS/ Bit.no in 1979.

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2.YI 40 i M i William J. Dirtks .

,MAR 121982' We sunmarized our views on measures that might be taken by PG&E to improve communications within PG&E and between PG&E and the NRC. g The PG&E representatives mentioned several steps that had been and were being taken to correct the comunications problems it readily admitted existed, and to improve its regulatory perfonnance. These included personnel changes, stronger sanagement, the assignment of Senior Vice Presidents Maneatis and Furbush to lead the licensing effort, and the establishment of a project management group.

They also intend to open and maintain high level comunica-tions channels with NRR, IE and Region V. . .

Our present perceptions of the situation are:

(1) The comunications, organizational, and performance problems within ,

PG&E were more intense than we had previously perceived.

(2)

The Chairman of the Board appears aware of the problems and is taking action to resolve them. The deficiencies are of such magnitude and character and have been tolerated for so long that the task to correct the situation will be long and difficult.

(3)

The 1.awyer-Engineer battle for control was evident to us, and hopefully to the Chairman, by interchanges between Mn. Furbush and Mr. Maneatis during our meeting.

- In our suggestions of possible measures to improve the PG&E prtblems, we indicated to Mr. Mielke that the best perfonners amngst Itcense applicants were those who assigned project leadership responsibility to a Vice President Engineer who had assigned to .him a full-time counsel of recognized competence.

(4) Mr. to Maneatis attack them appears knowledgeable about the problems that exist and ready forcefully. Mr. Furbush also appears to understand the .

issues and would likely be much core aggressive in his approach to resolve them, especially in personnel matters. Mcwever, the problem is much note one of technical management and organization than of legal difficulties, resolvt e.xisting and Mr.

ones. Furbush could create new problems in trying to (5) The critical catter is the quick establishment of high-level competent leadership for the Diablo Canyon project. Whether Mr. Mielke is fully aware be evident of the need in the comingand is able to take effective remedial action should months.

In arranging for the meeting, Mr. Mielke s' aid that if we wished to discuss any matters with him privately before or after the meeting he would ask that we not hesitate in doing so.

I informed him that we would do so but e.

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William J. Dircks ,

also asked him to call us if he had need for a private discussion. We hope that he does call us in the next week; .if he does not, we intend to call him to discuss insights we gained during and upon reflection after the meeting, that are more easily reviewed in a private discussion.

We will keep you infomed of subsequent developments and would appreciate any coments or suggestions you may wish to offer. -

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. Richard C. oung, rector Office of I ection and Enforcement

, J Robert Eng k n, Re .a1 Administrator Region Y b cc: Victor Stello, DED0/ROGR Harold Denton, NRR Regional Administrators- .

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• • • '^ April 28, 1982 L, p. r *-* **"" .. ...

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s Mr. Richard C. DeYonag, Director ,

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. Cear Mr. DoToungt E As you know, I regarded the meeting that Mr. Xanmatis. .

i j fd Str. Furbush, and I had with you and Mr. Engsiken en March 8 asSinaa then, we have taken , ,

i;- bishly canatructive and unaful. -

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i cf actimas to assure that we vw==ta saw, and in tha 1'uture, any  :

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which may have aristed La the past for taadequata ralstiour-chips betvesa PraeE and the Etc.

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Although we had detected in the past sama -espeable cetitudinal probians and had takan corrective maanuras at those i f times on an individual basia, == had mise had a sasahar of positive ncar in. e. c,es relat_.maht, wta ea aC fr l

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f:rmar members at the e-< = mian and staff. We charafers warm I~ cmrally unaware et, and surprised by, ease of tha ether nasativa l

f. parcepcians you desarthed to us.  ! i f; *

' I did set believe that it would have baan' productive et i

the meeting to taka 1asus irith the ganaral sharge of Amadequata er ,

incypropriata s e*--eton that you and Mr. Eagalkan laid befors What us. Nor da I beltsve it would be productive to do so now.

da important I baliava, na der == and my fallow-off1ames at PGandZ I to saka sharsa of our pressat and futura communications with tha EEC l' to be ours that, whatever any have basa the smaa prewtausly, a mound tralationship with sha WEC will be built for now and the future.

'Jeward that end. I have made the entira efficer staff aware of how the f:ommission has vieund PCandE's past attitude med practtee with respect to soussuaicating with the coussissian. 2a addition, particular actantion to this subject has been directed *

• se parsonnel to tha Company who ara directly tavolved in e.,_ -destias wtth the NEC. Both Mr. Manaatta and Mr. Furhush have been vary activa .

na this effort.

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f Stach of this attaccia= has baan focussed through oral cam-E ,anications within the Company, on a day-tg-day, one-on-ena basia.

h*,. This has, I believe, brought a high laval of individual avaranass en j pthe samd for tarprovemaust of our co--de= tions with the SEC.

l ?g . So that there is aise an unahvocal states:. ant of policy

,. rts which the cont 1muoom day-to-day impismaantation of policy enn esis.ta, f!'s c a formal statement has baan c-"4cated to all PGandE officers, i d

, i-ansimmers , tecb

• e" = , and others direct.ly turolved in the Company's 1

I f amselear facilitiam on this subject. This formal policy atacament

)  ?^[ T reiteratas that "our commastications with the 3GC mast be opan and l , a12mv a free flow of informacian" and that "nothhg less...can be  ;

i r ' tolerated." *niis formal raitaration, consisting of a three page

[$ ' 3 attar signed by me as chief azecutive, and by Atr. 3. W. Shsw1 Ford. .  ;

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L the %-y's president and chlaf eparatimg officar, was distributed I

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.! 'en March 22, two weeks af car our March 8 meeting. To make the emetre .

' M management.org=ed == tion pwgra .of tha seg=4.tment go carry out

@ this, policy. cepies . ef..g.h e.,la tzar,,wora ye ans. tm.al.L of $$c ns . . (ppar1:ma:r 1

' ^ basis, and divistan managars in the Campany.

Thess to when the lettar

", we.s addressed wara mach asked to sign and return an acknavledgement i form attached to the letter showing that the lattar had bea= recalved '

r and raad. A copy of this lactar and acknowledge:sent form is mac.1 mand.

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(,f I believe, as a result of ths. action I h.cre taken af ter j o=r March 8 meeting, there is a alaar underacending within the entire M PcuuLE erganization of tha -~'er of " fun and open" An desez:ibing

, that eur ralationships with the WRC must be. I pledge ury conWW ,

' afforts to saa that this awarenasa da maintained med that full and open e-~4 ra tion ,with tha NEC dona in fact' az1st.

(h . As you k.now, aftac having taken these actions in response

i' ta the March 8 ==a cing , I was grascly discreened when your let ter to se of April 13 indic.ated that you thought the company's fonsal response to the inaus of " material.ity" in the Wt.ica of Violation of yabruary 11 may hava given a different message from that ouM *w above as en wt.at /'

! the Company's pol. icy is with respect to corcunicat:fona v1th the NRC.

• i I belima my lactar to you of April 15, and the furtbar discussion l Str. Haneatis, Mr. Furbush, and 1 had w1th you and he. F.ngalkan en gril 1.9, hava clari.fied that sic.uation. .

1 A copy et any leccar ta you of April 15 was distribuced se all PCandZ paracanal cosearned directly with 51C mattars. It has also i ,, been distributed to all PC4.ad.E officers.

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h.s rd C. DsYoung April 28, 1.982

h. 1 1sta.ed 'to d$ all that is necessary to ger the e----*-a-htyeen this Campany and the NEC, on a. solid footing. Asada,

- c ciate the frank =.ama and spanness of your and Str. Engalksa's ,

carians at the .Harch 8 maatias. *

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4 Y .' Eagarding othar subjects coversd at the meeting, we have a suaber of yoreonnel and ersanis.ational changsa eo aerenachem

. ability to respond quickly to Cannission requizments and 1stuirtas. j s . -

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[ . Steps have been takaa to erpadite our own internal' damiga sw and our rasponas to the design revarification findings of the l indatendsat reviewsrs. We have amtsblished a projact tema for that i paypees and have retained sechtal Power Corporation as project scanger .

i der esspletion of the remaining work nacassary to bring the two unica l

Diablo into full power operation. The Bechtel ergenization will

! head an integrated team composed of the PGandE project tres, Rechtal .

1,ynes, and any others mechtti ba11mves should be added to cocplata the reviere design and construction to thm bishaar stande.rds with as 1 annacassary delay. *

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l Thia integrated ergenization will be ampla.ined in detail

_ t a meeting with the Caesaissian Staff in Washingesn. D. C. , en April 30 uv F

) For the benafit of the WRC staff,'as well as the contined

' e 7CandE=3achtel tamm, we are deve. loping a schedule for completion of i the merk. r--4 = 4 g to be dona. This will be subsitted to the appro-L. prista staff personnel .soon. It ta air hope that the Staff wi.11 be in f a position to establish a s'-*'--

- schedule for itis review work so that l resecration of our low power license and issuance of a license permitting

! j ' ascension to full power operation can be mada en a timely hamia. ..

71asse accept this em a brief written report, eenf N fn my eval reports to you and Ptr. Engelkan, as to actions taken in rampense

( to the March 4 meeting. .

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aC Mr. Barold R. Danton 8tr. Robert N. Engelkem kr. Cnorga A. Mancatta .

kr. Malcain L Furbush .

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