ML20148D882
| ML20148D882 | |
| Person / Time | |
|---|---|
| Issue date: | 05/29/1997 |
| From: | Gillespie F NRC (Affiliation Not Assigned) |
| To: | Reindl R B&G MANUFACTURING CO. |
| References | |
| REF-PT21-97, REF-QA-99901307 NUDOCS 9706020180 | |
| Download: ML20148D882 (8) | |
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UNITED STATES s
j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20666-0001 May 29, 1997 Mr. Roy P. Reindl, Branch Manager ACCUTECH A Division of B&G Manufacturing Co. Inc.
3873 W. Oguendo Road Las Vegas, NV 89118
SUBJECT:
ACCUTECH 10 CFR PART 21 RESPONSIBILITIES
Dear Mr. Reindi:
The purpose of this letter is to address the 10 CFR Part 21 (Part 21) reporting responsibilities of ACCUTECH, regarding basic components that were manufactured and supplied by its predecessor, Cardinal Industrial Products, limited Partnership (CIP).
B&G Manufacturing Co., Inc. (B&G), purchased CIP and created B&G-Cardinal (later renamed ACCUTECH) which is currently engaged in the same business operation of manufacturing and supplying basic components and, in addition, provides the services associated with these components to its customers which were formerly CIP customers.
The particular components addressed in this letter are 87 fasteners, manufactured by CIP and supplied as basic components to NRC licensees, which were found to be deficient, thereby invoking Part 21 regulations. Although the majority of the correspondence and events related to the B7 fastener issue occurred prior to the establishment of the name ACCUTECH, the name ACCUTECH is used as indication of the current status of the company and to preserve the continuity of the discussion.
ACCUTECH was initially notified of the existence of non-conforming 87 fasteners by a customer and subsequently determined that additional non-conforming and potentially non-conforming B7 fasteners existed, all of which were apparently manufactured and sold by CIP. ACCUTECH informed the NRC and customers of the non-conforming B7 fasteners.
However, on several occasions (e.g., May 8, 1996, January 31, 1997, February 14, 1997 and March 10, 1997),
ACCUTECH stated that, "[ACCUTECH] is not bound to take formal action under 10 CFR Part 21" and that the NRC and purchasing companies were notified "as a courtesy."
4 Backaround On July 10, 1995, B&G of Hatfield, Pennsylvania, purchased the name and l
certain other assets from CIP of Las Vegas, Nevada.
These assets included CIP's name, records of past customers and products and services supplied since 1989, the Cardinal facility (this describes the general operations which have continued at the site independently of ownership), and CIP's remaining inventory at the time of the transaction.
CIP's business included providing nuclear fasteners, as basic components, to NRC licensees.
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l Mr. Reindl ;
B&G acquired these assets to begin its own nuclear fastener business as a division of B&G, which it named B&G-Cardinal.
This transaction was not a merger between CIP and B&G and, in fact, the only asset not included in B&G's purchase of CIP was the CIP Limited Partnership itself.
B&G indicated in its
" Investigation' and Analysis of Suspect Fasteners, Event 29257, Final Report" dated November, 1995, which was sent to the NRC, that various owners have operated a fastener business under the " Cardinal" name at the facility where B&G-Cardinal, later renamed ACCUTECH, now conducts its operations.
Shortly after July 10, 1995, Duquesne Light (a former customer of CIP and, currently, a customer of ACCUTECH) notified ACCUTECH that it had found nonconforming Grade 87 fasteners which had been processed and sold to them by CIP as basic components. ACCUTECH sent notification of the deviation to the NRC and informed other purchasers of fasteners from the same CIP supplied lot.
Although this notification was made pursuant to 10 CFR 21.21(b), ACCUTECH stated that notification was being made "as a courtesy." As a result of the notifications, two other utility companies investigated their products received from CIP and reported to ACCUTECH that they found other nonconforming fasteners from the same lot and from one additional lot.
ACCUTECH indicated to the NRC in some of its correspondence that it initiated "a comprehensive investigation to ascertain the scope and cause of the problem, to determine corrective actions, to keep its new customers fully informed and, as a courtesy, to be able to instruct them to evaluate the condition in light of 10 CFR Part 21 paragraph 21.21(a)(1)(ii) and (b)(1)
[Please note that the correct paragraphs to be cited are 21.21(a) and (b)]."
To verify the test results of an independent testing laboratory employed by Duquesne Light, ACCUTECH also performed tests on the fasteners and confirmed that these fasteners deviated from B7 specifications.
ACCUTECH also broadened its investigation to include the inventory purchased from CIP which included products processed by heat treatment since that process seemed to be the cause of the deviation in the fasteners.
They found no products, other than B7 fasteners, with this deviation.
In several documents including B&G's " Investigation and Analysis of Suspect Fasteners, Event 29257, Final Report," ACCUTECH pointed out that "as a courtesy" it notified the NRC and t-he companies that purchased the fasteners from lots containing suspect material.
In the May 8, 1996, report to the NRC, B&G states that "Although B&G is not bound to take formal action under 10 CFR Part 21, WPPSS's [a licensee] notification prompted us to investigate not only the capscrews in question but other inventory that B&G acquired from CIP."
In this regard, it should also be emphasized that ACCUTECH's regulatory responsibilities pursuant to Part 21 are distinct from its product liability under contractual agreements between CIP and CIP customers and do not establish liability for monetary damages caused by defects in products manufactured and supplied by CIP to CIP customers.
Mr. Reindl,
1 Discussion The purpose of the regulations in Part 21 is to establish procedures and requirements which would implement Section 206 of the Energy Reorganization i
Act of 1974 (ERA).
That section requires notification of " failures to comply or defects which could cause a substantial safety hazard... [by] any 1
individual director, or responsible officer of a firm constructing, owning, i
operating, or supplying the components of any facility or activity which is licensed or otherwise regulated pursuant to the Atomic Energy Act of 1954 (AEA), as amended, or pursuant to this Act..."
The regulations in Part 21 j
were written to ensure that the Commission is promptly notified concerning defects and noncompliance in basic components which could create a substantial i
safety hazard (these terms are defined in Part 21) in facilities or activities licensed by the Commission.
10 CFR 21.21 requires the establishment of evaluation and notification procedures; and 10 CFR 21.51 requires the i
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preparation and maintenance of records necessary to accomplish the purposes of
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Part 21.
Specifically,10 CFR 21.51 requires that:
(1) evaluations of all j
deviations and failures to comply be maintained for a minimum of five years; (2) suppliers of basic components must retain notifications sent to purchasers 1
and affected licensee.s for a minimum of five years after the date of l
notification; and (3) suppliers of basic components must retain a record of the purchasers of basic components for 10 years after delivery of the basic component or services associated with a basic component.
1 The circumstances surrounding B&G's purchase of CIP assets. consist of the following:
(1) the asset that were sold made it impossible for CIP to meet its Part 21 requirements;g (2) ACCUTECH continues to supply basic component
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i inventory obtained from CIP; (3) ACCUTECH continues to provide services related to the basic components supplied by CIP based on the records CIP sold i
to ACCUTECH; and (4) based on the transaction, ACCUTECH appears to be the only entity in a position to comply with Part 21 requirements regarding the 1
j fasteners supplied by CIP.
Conclusion l
The NRC staff concludes that ACCUTECH is incorrect in the interpretation of its responsibilities under Part 21 by characterizing them as " courtesy" j
actions. The Part 21 regulations require that the pertinent provisions of the regulations be implemented in the event of the discovery of a defect in a a
j basic component. ACCUTECH is bound to take formal action pursuant to Part 21, and must do so because of the regulatory requirements it assumed due to its i
i purchase of the CIP assets.
Therefore, future actions or correspondence related to 10 CFR Part 21 concerning basic components manufactured or sold by ACCUTECH or manufactured 2
B&G purchased:
(1) the Cardinal name, (2) the CIP facility,
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(3) CIP's business records since 1989, and (4) CIP's inventory.
In addition, i
ACCUTECH supplies the services associated with the basic components sold by CIP.
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Mr. Reindi !
and sold by CIP, as discussed above, should be accomplished by ACCUTECH in accordance with the regulations contained in 10 CFR Part 21 and the applicable ACCUTECH procedures.
In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter and its enclosures will be placed in the NRC's Public Document Room (PDR).
Should you have any questions concerning this letter, please contact Mr. Bill Rogers at (301)415-2945.
Sincerely, Original signed by Frank P. Gillespie, Director Division of Inspection and Support Programs Office of Nuclear Reactor Regulation Docket No. 99901307 Rii. trit,ution:
PSIB R/F PUBLIC SJCo', lins TTMartin BBoger Regional Administrators Rejional Division Directors OGC (3)
ACRS (3)
DOCUMENT F' die: G:\\ ROGERS \\ACC21
- See Previour Concurrence To r:ceive a copy of this document, indicate in the box: *C" = Copy without enclosures *E' = Copy with enclosures *N" = No copy 0FFICE PSIB: DISP l
PSIB: DISP l OCG l
HQMB.,RCH l PSIB: DISP l 1
NAME BRogers GCwalina STreby SBlack*
RGallo*
DATE 04/23/97*
04/24/97*
05/14/97*
05/22/97 05/28/97 D: DISP:NRR FPGillespie 05/29/97
4 I
Mr. Reindl I and sold by CIP, as discussed above, should be accomplished by ACCUTEC!f in accordance with the regulations cor tained in 10 CFR Part 21 and the applicable ACCUTECH procedures.
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In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice,"'a copy of this letter and its encloscres will be placed in the NRC's Publ,fc Document Room (PDR).
Should you have any questions concerning this lepter,'please j
contact Mr. Bill Rogers at (301)415-2945.
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l' Sincerely, i
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l Frank P. Gillespie, Director l
j Division of Inspection'and Support Programs i
j Office of Nuclear Reaktor Regulation 1
Docket No. 99901307
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Distribution:
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PSIB R/F, PUBLIC
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DOCUMENT NAME: G:\\ ROGERS \\AC 21
- See Previous Concurrence To r:ceive a copy of this document, indi ate in the box: "C" = Copy without enclosures "E" = Copy with enclosures "N" = h 0FFICE PSIB: DISP l
PSIB: DISP l OCG l
HQMB:DRCH l PilhWSP lU-NAME BRogers_.
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R$allA DATE 04/23/97*
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04/24/97*
05/14/97*
05/22/97 05T)#97 0FFICIAL RECORD COPY
Mr. Reindl and sold by CIP, as discussed above., should be accomplished by ACCUTECH in accordance with the regulations contained in 10 CFR Part 21 and the applicable ACCUTECH procedures.
In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter and its enclosures will be placed in the NRC's Public Document Room (PDR).
Should you have any questions concerning this letter, please contact Mr. Bill Rogers at (301)415-2945.
Sincerely, Robert M. Gallo, Chief Special Inspection Branch Division of Inspection and Support Programs Office of Nuclear Reactor Regulation Docket No. 99901307 l
)
s Distribution:
PSIB R/F, PUBLIC DOCUMENT NAME: G:\\ ROGERS \\ACC21
- See Previous Concurrence To r:ceive a copy of this document. Indicate in the box: "C" = Copy without enclosures *E" = C h enclosures "N" = No copy 0FFICE PSIB: DISP l
PSIB: DISP l OCG l
HQMB:DRCH lC PSIB: DISP l NAME BRogers GCwalina STreby SBlack f(c dev RGallo DATE 04/23/97*
04/24/97*
05/14/97*
05/tt-/97
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05/ /97 0FFICIAL RECORD COPY
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Mr. Reindl q In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter and its enclosures will be placed in the NRC's Public Document Room (PDR).
Should you have any questions concerning this letter, please contact Mr. Bill Rogers at (301)415-2945.
Sincerely, l
Robert M. Gallo, Chief Special Inspection Branch Division of Inspection and Sup ort Programs Office of Nuclear Reactor Re lation Docket No. 99901307 Distribution:
PSIB R/F, PUBLIC DOCUMENT NAME: G:\\ ROGERS \\A 21
- See Previous Concurrenc To receive a copy of this document, dicate in the bon: "C" = Copy witho ospres "If' = Copy with enclosures "N" = No copy 0FFICE PSIB: DISP
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GCwalina STreby/ 'fl SBlack RGallo NAME BRogers DATE 04/23/97*
04/24/97*
05/19/97 05/ /97 05/ /97 OFFICIAL RECORD COPY
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1 Mr. Reindl /
In accordance with 10 CFR 2.790 of the NRC's " Rules of Practic'e," a copy of this letter and its enclosures will be placed in the NRC's,.Public Document Room (PDR).
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Sincerely,
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Robert M. Gallo,, Chief Special Inspection Branch Division of Ins'pection and Support Programs Office of Nuclear Reactor Regulation
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Docket No. 99901307
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J Distribution;-
PSIB R/F, PUBLIC DOCUMENT NAME: G:\\ ROGERS \\ACC21 To receive a copy of this document, Indicate in the box: *C" = Copy without enclosures "E" = Copy with enclosures *N" = No copy 0FFICE PSIB:DLSP l
PSIES QJEP l C-OCG l
HQMB:DRCH l PSIB: DISP l J
NAME BRogers Z'/jR GCwdhrfa STreby SBlack RGallo i
DATE 04/23/97 04/Jy /97 04/ /97 04/ /97 04/ /97 0FFICIAL RECORD COPY l
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