ML20147J078
| ML20147J078 | |
| Person / Time | |
|---|---|
| Site: | Millstone  |
| Issue date: | 04/07/1997 |
| From: | Collins S NRC (Affiliation Not Assigned) |
| To: | Carns N NORTHEAST NUCLEAR ENERGY CO. |
| References | |
| NUDOCS 9704100136 | |
| Download: ML20147J078 (14) | |
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UNITED STATES j
NUCLEAR REGULATORY COMMISSION h
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,2 April 7, 1997 j
g Mr. Neil S. Carns Senior Vice President
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and Chief Nuclear Officer i
Northeast Nuclear Energy Company c/o Mr. Richard T. Laudenat j
Director - Regulatory Affairs J
P.O. > 128 l
Water' l, CT 06~,85
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Dear Mr. Carns:
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The U.S. Nuclear Regulatory Commission's (NRC's) Order to Northeast Nuclear Energy Company (NNECO) dated October 24, 1996, required NNECO to submit the d
name of a proposed third-party organization to oversee the implementation of a 9
comprehensive plan for reviewing and dispositioning safety issues raised by j
NNEC0 employees.
The Order requires NRC's apprcval of the proposed g
organization and also provides for relaxation of the Order upon demonstration i
of good cause by NNECO.
j This letter provides the conditional approval of your proposed contractor, l
Little Harbor Consultants, Inc. (LHC), for the independent, third-party 33 oversight program (ITPOP) organization overseeing the implementation of the employee safety concerns program. This letter also relaxes part of the NRC's i
Order of October 24, 1996, concerning the inclusion of Ms. Garde as a member i
of the ITPOP team.
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On the basis of the information provided in your submittals of December 23, j
1996, January 14, and February 4, 1997, and the discussions at the meeting on g"
February 5,1997, we have concluded that LHC has the technical expertise and appropriate independence to conduct the ITPOP at the Millstone facility.
We i
have concluded that the various technical disciplines needed for the ITPOP are 5
adequately represented by the resum6s included in your submittals and from our f
telephone interviews conducted on March 4, 1997.
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A detailed discussion of the basis for NRC's approval is given in Enclosure 1.
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Although we have received certifications of financial independence from each l
of the proposed members of the ITPOP, we have not obtained certifications of
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financial independence of NNECO and LHC from each other.
Therefore, our y
f approval of LHC as the third-party organization is conditional pending submittal of the enclosed certifications of financ;al independence by the f
corporate officials of the licensee and LHC (Enclosure 2).
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i As stated in our letter of January 30, 1997, and discussed at the meeting on February 5, 1997, after we approve an organization and receive the proposed uversight plan, we will conduct additional resum6 reviews, and possibly
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interviews, to confirm that individuals are appropriately assigned tasks in i
their areas of expertise.
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r Neil S. Carns This letter also relaxes part of the NRC's Order of October 24, 1996.
In our letter of February 14, 1997, we noted that two peopic, Ms. G'rde and Dr. Wood, have direct, previous involvement with NNECO.
We noted that Dr. Wood's involvement in the probabilistic risk assessment (PRA) for Millstone Unit 3 and Ms. Garde's work on the employee safety concerns comprehensive plan appear to represent direct, previous involvement with activities at the Millstone station that the organization will be overseeing.
Therefore, the inclusion of Dr. Wood and Ms. Garde on the ITP0P team would be contrary to the Order unless good cause was documented for relaxation. By letter dated February 28, 1997, you requested relaxation of the Order for Ms. Garde and Dr. Wood.
I grant relaxation of the Order for Ms. Garde to be a member of the ITPOP team. We agree that the addition of someone like Ms. Garde to the ITP0P team brings a valuable perspective of both the employee and the whistleblower and addresses one of the topic areas raised in our letter of January 30, 1997.
It also addresses one of the areas of concern raised by members of the public at the you' public meeting on February 5,1997. In your letter of February 28, 1997, indicate that appropriate administrative controls will be placed on Ms. Garde's involvement with the ITP0P to ensure that any actual or potential conflicts are avoided.
However, I deny the relaxation of the Order that would parmit Dr. Wood to be a member of the ITPOP team. We find that you did not provide an adequate basis in your February 28 letter for relaxing the Order for Dr. Wood.
The NRC staff does not consider that sufficient justification has been provided with respect to Dr. Wood's providing unique skills necessary to the ITPOP.
Because of his previous involvement with NNECO and the insufficient justification provided by NNECO, the staff does not consider that his participation would be indispensable to the ITPOP mission. Although you consider Dr. Wood's previous work for NNECO as serving in an advisory capacity in connection with the development of the PRA for Millstone Unit 3, you did not provide adequate justification or good cause for relaxing the Order.
On February 5, 1997, the NRC held a meeting with members of the public to receive comments on the proposed ITPOP organization, LHC. A discussion of the public's comments is included in Enclosure 1.
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Neil S. Carns Please call Phillip McKee at (301) 415-2040 if you need any additional information or clarification of the enclosures.
Sincerely, f
s, Director Office of Nuclear Reactor Regulation
. Docket Nos. 50-245, 50-336, and 50-423
Enclosures:
- 1. Results of the Staff Review of the Proposed ITPOP Organization
. 2. Certifications of Financial Independence cc w/encls: See next page r
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..s-April 7, 1997,
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.Neil S. Carns Please call Phillip McKee at (301) 415-2040 if you need any additional information or clarification of the enclosures.
Sincerely, Original signed by:
Samuel J. Collins, Director Office of Nuclear Reactor Regulation Docket Nos. 50-245, 50-336, and 50-423
Enclosures:
- 1. Results of the Staff Review of the Proposed ITPOP Organization
- 2. Certifications of Financial Independence a'
cc w/encls:. See next page i
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Introduction 1
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.On October 24, 1996,-- the NRC issued an Order to Northeast' Nuclear Energy Company (NNECO), the licensee.for Millstone, requiring (1) a comprehensive
' plan for resolving the Millstone station employees' safety concerns and (2) an independent, third-party oversight program (ITPOP) organization to oversee NNECO's implementation of the employee safety concerns program (ESCP). The ITPOP organization-must be independent of NNECO and its vendor and architect-engineer (AE)' contractors. The ITPOP is to provide independent verification that the licensee's ESCP effectively resolves employee concerns.-
-The~ Order states that the NRC staff will approve the ITPOP organization to 4
ensure that.the organization has qualified individuals who will conduct the review adequately and-independently of NNECO.
l The purpose of the ITPOP, as stated in the Order, is to confirm that M111 stone's ESCP resolves and disposes of employee _ safety concerns. The ITPOP audit required by the NRC is expected to provide independent verification, beyond the licensee's quality assurai..e and management oversight, that NNECO has identified and satisfactorily resolved ESCP concerns and has established l
programs, processes, and procedures for effective ESCP management in the i
future.
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Background===
On December 23, 1996, NNECO submitted information on the proposed selection of
-Little Harbor Consultants, Inc. (LHC), as the contractor or organization for the Millstone ITPOP. The submittal identified the principal individuals involved in each major aspect of the ITPOP and their resumes.
The submittal t
also included the proposed ITPOP team structure.
On January 14, 1997, NNEC0 submitted additional information on the ITPOP organization. The information included a copy of LHC's technical proposal and independence certification statements signed by the team members.
i On January 30, 1997, the NRC sent a letter to NNECO requesting additional information about the ITPOP organization. One of the questions asked NNECO to describe any experience or qualifications of LHC or the proposed team in
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assessing ESCPs from the perspective of employees.
On February 5, 1997, the staff held a public meeting with NNECO to discuss the ITPOP organization selection and to receive answers to staff questions.
Before the meeting, NNECO provided the staff with a February 4,1997, letter 4
that proposed the addition of two people to the ITPOP team. NNECO proposed to add Mr. James-K. Perry, Jr., and Ms. Billie P. Garde.
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In the evening of February 5,1997, the NRC staff held a public meeting in the
- Waterford Town Hall to receive comments from the residents of Waterford on NNEC0's selection of LHC as the ITPOP organization to oversee NNECO's ESCP.
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'On February 14, 1997, NNEC0 responded to the staff's questions.
-Also on February 14,1997,'the NRC staff sent a letter to NNECO. stating that in reviewing its letters,.the NRC staff noted that two people, Ms. Garde and Dr. Wood, have had direct, previous involvement with NNECO. The NRC staff-stated that while it agreed that adding someone like Ms. Garde to the oversight team brings a valuable perspective of the employee and of the whistleblower and addresses one of the topic areas raised in NRC's letter of January 30, 1997, the NRC staff found that Ms. Garde did not meet a provision
- of the Order. Dr. Wood also did'not meet this provision.
i The February 14 letter stated that if NNECO wanted to pursue having Dr. Wood or Ms. Garde or any other individual having direct, previous involvement _ at i
NNECO, participate as a member of the ITPOP team,.NNECO needs to demonstrate good cause for the NRC to relax the provisions of the Order.
On February 28, 1997, NNECO sent a letter requesting a relaxation of the Order i
for Dr. Wood and Ms. Garde.
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On March 4, 1997, the NRC staff conducted interviews by telephone with each of i
the ITPOP team members. The staff asked questions on the individuals' qualifications, his or her role on the ITPOP team, and the anticipated level his or her participation.
Staff Evaluation The Order states that the NRC staff must approve the ITP0P organization. The staff conducted a review of the information submitted by NNECO on the proposed ITPOP organization, LHC, to ensure that the team members selected to perform the ITPOP are technically and financially independent of NNECO, the NSSS vendors, and the architect-engineers (AEs).
To complete this evaluation, the NRC staff performed the following activities:
a.
Determined whether the proposed ITPOP organizaticn, LHC, has any i
financial interest or had any technical involvement with the Millstone station.
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Determined whether LHC has adequate technical and managerial qualifications to conduct the ITPOP.
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Determined whether LHC specialists have the appropriate technical background to participate in the ITPOP. The evaluation included a L
review of the individual team member resumes.
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Interviewed each individual team member of LHC.
The staff may conduct additional resums reviews, and possibly, interviews
i s i concurrent with its review of. the proposed ITPOP plan and '
i organizational structure to assure that individuals are appropriately assigned to tasks within their expertise. ThisL i
approach would permit the NRC staff to evaluate the adequacy of the team's expertise and experience, with an understanding of the I
specific tasks that each member will perform in the review.
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Discussion j
LHC'Oraanization LHC is a sub-chapter S corporation formed in 1992 to serve as the corporate l
vehicle for the consulting practice of its President, John W. Beck.
LHC has assembled individuals to perform the ITPOP. Many of the ITPOP members have worked together before on activities associated with Comanche Peak and at Tenera Corporation.
The ITPOP team currently has 12 members covering the following areas of
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' expertise: management, operations, engineering, maintenance, ESCP, safety analysis, regulatory, legal, training. The individual for health physics, i
chemistry, and radwaste has since decided to leave the team because his company has deciLd to pursue other work, which may pose a conflict of 4
interest.
LHC has stated that they will find a substitute.for this position.
f Future New Team Member Selection Process The selection of new team members will be made using the same criteria and i
methodology used in assembling the current team. After successfully verifying the independence of the new team member, information on the new team member will be forwarded to the NRC for review and approval.
LHC intends to allow the new team member to begin to participate in ITPOP activities as soon as the L
independence verification process is completed by NNECO and information on the individual has been sent to the NRC. Should the NRC not approve the new team member,' compensatory actions will be taken, such as secondary review of the t
work the individual had performed, based on the nature of the NRC's rejection i
of the individual.
This process will be' formalized in the ITPOP project controls that will be prepared by LHC and approved by the NRC.
Verification of Financial and Oraanizational Independence of LHC from NNECO The President of LHC, Mr. John W. Beck, certified that he has never worked as a contractor or consultant to Northeast Utilities System, Northeast Utilities Service Company (NU), or Northeast Nuclear Energy Company. NNECO has reviewed the NU purchase order database and determined that LHC, as a corporate entity, l
has never been under contract to NU. As discussed below, the NRC has received certificates of financial independence from each of the proposed members of the ITPOP. Certification of financial independence of LHC from NNECO and i
NNECO from LHC has not been received. Therefore, staff approval of LHC as the
~ third-party organization will be contingent upon certification of financial independence by the corporate officials of the licensee and LHC.
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Each LHC team member executed a certification that addresses organizational, i
experience, and financial independence from NU and NNECO and copies of these I
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certifications have been provided in licensee submittals.
Each team member certified that they had not been an employee or director of Northeast Utilities System, Northeast Utilities Service Company, or Northeast Nuclear Energy Company or owned or directly controlled any equity position or bonds from these companies. None of the team members has had, up until the time of being named to the ITPOP team, unescorted access to any NU nuclear facility.
The individual certifications and licensee correspondence identified that four individuals proposed as team members had some past consultant involvement with NU. The past involvement of these individuals, other than that of Ms. Garde and Dr. Wood, was peripheral to Millstone site activities.
Relaxation to the Order with respect to Ms. Garde is provided in the succeeding paragraph. The NRC staff has not provided relaxation from the Order for Dr. Wood.
In cases where some manner of past involvement with NU or NNECO has occurred, as is the case with Ms. Garde, individual-specific administrative controls will be imposed on the individual's involvement on the ITPOP to ensure they are not involved in assessment of activities relating to their previous involvement.
Ms. Garde provided consulting services in December 1996 and January 1997 to the team of employees NNECO charged with the development of the ESCP Comprehensive Plan for Millstone.
Her consulting services on that project have ended with the publication of the Plan on January 31, 1997.
In a February 28, 1997, letter, NNEC0 requested relaxation of the NRC Order to allow Ms. Garde to participate as an ITPCP team member of LHC.
The letter states that Ms. Garde has spent the majority of her legal career representing employees in the nuclear and energy industry in connection with retaliation claims.
She has experienced, first hand, harassment and intimidation by her employer, including termination from her job for exposing criminal misconduct of her supervisor.
She has represented over 500 individual employees in legri proceedings involving various aspects of harassment, intimidation, and discrimination.
Her activities have put her in positions to evaluate ESCPs at many of the nuclear power plants with such programs.
The NRC staff believes that relaxation of the Order should be granted for Ms. Garde to be a member of the LHC team. The staff agrees that adding someone like Ms. Garde to the oversight team brings a valuable perspective of the employee and of the whistleblower and addresses one of the topic areas raised in its January 30, 1997, letter.
It also addresses one of the areas of concerns raised by members of the public at the February 5,1997, public meeting.
In its letter of February 28, 1997, NNECO indicates that appropriate administrative controls will be placed on Ms. Garde's involvement with the ITPOP to ensure any actual or potential conflicts are avoided.
NNECO characterizes Dr. Wood's prior work as serving in an advisory capacity in connection with the development of the PRA for Millstone Unit 3.
NNEC0 describes Dr. Wood's as someone whose background in safety analysis and related analytical techniques will provide a unique perspective to ITPOP. The NRC staff does not consider that sufficient justification has been provided with respect to Dr. Wood's providing unique skills necessary to the ITPOP.
Because of his previous involvement with NNECO and the insufficient justification provided by NNECO, the staff does not consider that his partfcipation would be indispensable to the ITPOP mission.
Therefore, relexation of the Order that would permit Dr. Wood to be a member of the ITPOP team is denied, t
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i The staff, in meetings with members df the public near the Millstone facility, has receivod comments on the issue of the independence of LHC from NNECO.
The principle commant from several members of the public is that LHC is not truly independent because most of its team members have worked in the nuclear i
industry before. The NRC staff notes that the NRC Order states that, "The j
third-sarty organization chosen to oversee the conduct of the Licensee's i
compretensive plan must be independent of the Licensee, such that none of :its members has had any direct, previous. involvement with the activities at the Millstone Station that the organization will be overseeing.".The NRC staff has evaluated LHC and believes that with one exception, where a relaxation to the Order will be granted, that LHC and the team members have not had any direct previous involvement with NNECO. The staff does not view team members' F
previous nuclear industry experience as a factor which would significantly j
impact their ability to fairly evaluate NNECO's implementation of its ESCP.
i As a practical matter, some nuclear industry experience is necessary to l
4 facilitate the team's evaluation of technical issues.which are raised to the
- ESCP.
Experienca in Assessino ESCPs from the Perspective of the Employees F
NNECO provided the following information in this area.
Mr. John W. Beck was involved in the development of a methodology used in assessing the effectiveness of ESCPs and characterizing nuclear safety 4
cultures. The methodology was developed to elicit the response of emp'oyees 1
using structured interviews. The output was then synthesized into underlying themes and recotanendations for improvement. The themes and recommendations were then verified in a series of employee-led workshops, facilitated by the j
consultant. Mr. Bob Engelmeir worked at South Texas on the ESCP.
1 Most of Ms. Billie Garde's work in the nuclear utility has been on the behalf of employees. Her training and teaching consultations in assisting nuclear utility management develop a better appreciation of what motivates and is important to the whistleblower is fundamentally driven by her understanding and familiarity with the perspective of the emp1r.se. This is particularly beneficial with respect to employees who have become disaffected for reasons having to do with intimidation, harassment, or discrimination.
The staff, in meetings with members of the public near the Millstone facility, has received comments on the issue of previous experience of the LHC team members.
One comment received from the public was thht LHC has too many team members who are managers or executives. The NRC staff agrees that LHC has many team members who have previous experience in management or held executive positions. The staff believes that this situation is not necessarily detrimental because these team members' management experience would be
- beneficial in facilitating the oversight of the implementation of the ESCP at Millstone. Their experience also would help in communicating to management potential improvements in the ESCP. However, the staff does believe it is important to have a team member who represents the employees or 4
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whistleblowers' ' perspective. This issue;is discussed further in the following re g nse.
i Another comment-rece16d from the public was that LHC has no tesm ' member I
representing the perspective of the employce..The NRC staff agrees that LHC' was lacking in team members representing the employee's perspective.
In its January 30, 1997, letter requesting additionaliinformation from NNECO on LHC, L
the NRC. staff asked NNECO to describe any experience or qualifications of LHC r
or the proposed team in assessing _ employee concerns programs from the i
i perspective of the employees.
In response to this question, NNECO proposed in
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a February 4, 1997,. letter to supplement the team with two team members. One of the team members is Ms. Garde who was a whistleblower. herself and has represented numerous employees in cases against utilities involving l
harassment, intimidation, or discrimination.- The NRC staff agrees that adding.
someone like Ms. Garde to the oversight team brings a valuable perspective of the employee and of the whistleblower.
Exoerience in Root Cause Evaluations. Developino Corrective Actions. and Imolementina Corrective Actions i
In its January 30, 1997, letter and in its March.4, 1997, interviews, the'NRC
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L staff. asked for the ITPOP members experience in this area. The staff received the_ following information. While the entire LHC team has not worked together as a team'on past projects, various team mesers have worked together and individually on projects that required them to perform root cause evaluations and'to' develop and implement corrective actions. A few examples where team members have demonstrated the ability to identify root causes and develop and implement-corrective actions are: (1) Independent Comanche Peak Review Team; (2) Comanche Peak Operational Readiness Evaluation; (3) Commonwealth Edison Evaluation of Nuclear Division Performance; (4) Zion Station Diesel Generator r
Task Force; and (5) South Texas ESCP.
j level of Participation The NRC staff discussed the level of participation of the team members because i
LHC is a shell corporation bringing in individual consultants to staff the ITPOP project.
LHC states that it has obtained a commitment from each team member to support the ITPOP project for its duration.
LHC anticipates that Messrs. Beck and Griffin will be involved on, essentially, a full-time basis, i
and either Mr. Beck or Mr. Griffin will maintain a full-time site presence at Millstone for the duration of this effort. The team members will be involved i
on an as-needed basis, as required by structured interview activities and specific technical issue demands. This level of effort will average 1 to 2 weeks per. month, depending on the nature of the ITPOP activities.
'LHC Process to Handle' Differino Professional Opinions The LHC team will attempt to reach a consensus for all findings and.
recommendations resulting from the oversight activities. This objective creates an atmosphere in which team members must vigorously defend their
- particular views to other involved team members, when differing opinions exist.
Should there be instances where team consensus cannot be reached, the applicable oversight report will identify.that a differing professional i
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-opinion exists and include a written description of the differing professional opinion prepared by the dissenting team member (s).
Conclusion Based on the various submittals from NNECO, the telephone interviews, the meeting.with NNECO, and the public meeting with the residents of Waterford, the NRC staff concludes that LHC is an acceptable selection by NNECO as the i
ITPOP organization to oversee the implementation of the ESCP at Millstone.
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Certification of Financial Indeoendence I John W. Beck, being first duly sworn, depose and state:
That I am President. Little Harbor Consultants. Inc. (the Contractor).
That I am authorized to provide the following certification on behalf of the Contractor to the U.S. Nuclear Regulatory Commission (NRC).
That the Contractor does not own stock, bonds, or other financial investment mechanisms in Northeast Nuclear Energy Company, the Licensee to whom the NdC issued an October 24. 1996. Order requiring an independent, third-party oversight program (ITPOP).
John W. Beck. President l
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-i Certification of Financial Indeoendence 1, Neil S. Carns, being,first duly sworn depose, and state:
That I am President and Chief Executive Officer (CEO) Northeast Nuclear
' Energy Corporation (the Licensee).
1 That I am authorized to provide the following certification on behalf of the-Licensee to the U.S. Nuclear Regulatory Commission (NRC).
That the Licensee does not own stock, bonds, or other financial investment mechanisms in Little Harbor Consultants. Inc., the Contractor proposed by the Licensee to fulfill the requirements of the NRC's Order of October 24, 1996.
Neil 5. Carns, President and CEU-~
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Northeast Nuclear Energy'. Company Millstone Nuclear Power Station
-Units 1, 2, and 3 CC'.
Lillian M. Cuoco. Esquire Mr.. Wayne D. Lanning Senior Nuclear Counsel Deouty Director of Inspections Northeast Utilities Service Company-Special Proiects Office -
P.O. Box 270 475AllendaTeRoad Hartford, CT 061A1-0270' King of Prussia, PA 19406-1415 Mr. Kevin T. A. McCarthy, Director Mr. F. C. Rothen Monitoring and Radiation Division Vice President - Nuclear Work Services l
Department of Environmental Northeast Nuclear Energy Company Protection-P.O. Box 128 79 Elm Street Waterford, CT 06385 Hartford, CT 06106-5127 Charles Brinkman, Manager
'Mr. Allan Johanson, Assistant Washington Nuclear Operations Director ABB Combustion Engineering Office of Policy and Management 12300 Twinbrook Pkwy. Suite 330 Policy Development and Planning Rockville, MD 20852 Division 450 Capitol Avenue - MS 52ERN Mr. D. M. Goebel P.O. Box 341441 Vice President - Nuclear Oversight Hartford, CT 06134-1441 Northeast Nuclear Energy Company P. O. Box 128 Regional Administrator, Region I Waterford, CT 06385
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U.S. Nuclear Regulatory Commission 475 Allendale Road Mr. M. L. Bowling, Jr.
l King of Prussia, PA 19406 Millstone Unit No. 2 Nuclear Recovery Officer First Selectmen Northeast Nuclear Energy Company-Town of Waterford P. O. Box 128 Hall of Records Waterford, CT 06385 4
200 Boston Post Road Millstone Nuclear Power Station Waterford, CT 06385 Senior Resident Inspector Mr. J. P. McElwain c/o U.S. Nuclear Regulatory Commission Millstone Unit No. 1 Nuclear P.O. Box 513 Recovery Officer Niantic, CT 06357 Northeast Nuclear Energy Company P. O. Box 128 Mr. J. K. Thayer Waterford, CT 06385 Recovery Officer - Nuclear Engineering and Support Deborah Katz, President Northeast Nuclear Energy Company I
Citizens Awareness Network P. O. Box 128
-P.O. Box ~83 Waterfod, CT 06385 Shelburne Falls, MA 03170 m
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LNodheastNuclearEnergyCompany Millstone Nuclear Power Station.
Units 1. 2. and 3 l
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LNortheast Nuclear Energy Company.
P. O. Box 128 Waterford,- CT:06385 i
Burlington Electric Department c/o Robert E. Fletcher, Esq; j
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' 271 South Union Street Burlington, VT 05402 t
Mr. M..R. Scully. Executive Director Connecticut Municipal Electric Energy-Cooperative
'30 Stott' Avenue iNorwich,-CT 06360.
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Mr. William D. Meinert i-
?!uclear Engineer Massachusetts Municipal Wholesale Electric Company.
P.O. Box 426 Ludlow,'MA'01056 i
i Ernest C. Hadley, Esquire 1040 B Main Street
'P.O. Box 549 i
West Wareham,- MA 02576 Joseph R. Egan, Esq.
Egan & Associates, P.C.
.2300 N Street, NW Washington, 0.C. 20037 Citizens Regulatory Commission ATTN: Ms. Susan Perry Luxton 180 Great Neck Road Waterford, Connecticut 06385 i
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