ML20148M819

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Recommends Amending Atomic Energy Act of 1954,as Amended,To Increase Penalty Limits NRC May Levy on Violators
ML20148M819
Person / Time
Issue date: 05/11/1978
From: Hendrie J
NRC COMMISSION (OCM)
To: Oneill T
HOUSE OF REP., SPEAKER OF THE HOUSE
Shared Package
ML20148M724 List:
References
NUDOCS 8012240075
Download: ML20148M819 (21)


Text

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R Q. f NAY 111978 .- -

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The Honorable Thomas P. O'Neill ~

1. ~E The Speaker of the House. -

of Representatives .

Washington, D. C. 20515

Dear Mr. Speaker:

On April 19, 1978, the Nur :ar Regulatory Commission' approved unanimously - -

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recommendations for new l' ti slation to amend Section 234 of the Atomic "

Energy Act of 1954,- as amended, dealing with the Comission's authority - -

to issue civil penalties. These recommendations are provided for the g infornation of the appropriate Congressior.al committees. ' -

g The Ccmmission's present authority to impose civil penalties for viola-tions by licensees is derived from Section 234 of the Atomic Energy Act of 1954, as amended. Section 234 authorizes the Commission to impose

'or.a variety of licensing violations, t pe'nalty.'6ci: to exceed $5;000 f '

fo'r each violation or $25,000 for all violations occurring.within any _

period of thirty consecutive days. If a violator refuses to pay, Sectiori -

1 234 (c) provides for collection of the penalty by a civil action insti-tuted by the Attorney General at the Commission's request.

Civil penalties are useful to the Commission because they provide flexible sanctions to enforce regulations that other!ise could be enforced only ^t i by the extreme measure of license revocation. However, the Connission j has been concerned for some time about the usefulness of the present .  ;

. statutory scheme of civil pensities. After reviewing eight years of - '

l experience with the civil penalty.s2nction, we- believe that the limits. . .

oc civil penalties need.to be increased substantially and that a change -

y to a system of administrative imposition is desirable. - '

.q Th5 Co$fssion has considered the darfous way's in which'th'e present' Y '

penalty limits can be increased. . It is our recor.endation that the '

c.aximum penalty which can be assessed for a single violation should be -

raised to 3100,000, subject to a naximum of $300,000 assessed for viola- --

tions cctmitted within a 33-day period. - a ' . (.;...!

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The Honorable Thomas P. O'Neill .M G b The Comission believes that administrative Tmposition of civil penalties .

is. desirable a.nd,will become still more desirable ~ if the limits on '

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. penalties are. raised to 1:he -leyels recomended.~ Imposition of penalties . '

substantitally larger thari tho'se presently all.osied may b'e expected to. '

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. . increase the number of'. times th5 Com:pission wil.1 have to r,esort to a . *

- 1::ollection' action to carry an enforcement pioc'eeding to honclusion. If .

the civil penalties program is to achieve *the full flexibility which the' availability of higher penalties should provide, the entire penalty "  !,=

procedure needs to be brought under the Commission's centrol through 1 -

change to, administrative imposition. ,

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The reasons why the Comission is proposing. increased penalty limits as.

well as the arguments favoring administrative imposition of. civil penal-ties'are set out in the attached memorandum entitled " Proposed Changes in NRC Civil Pe.nalty. Authority','. .

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.- Sincerely. -

Crigind Sip:a Bf

. [c:sph Ll. lie.9drie . .

Joseph M. Hendrie il Chaint.an .

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IDENTICAL LETTER SENT TO PRESIDENT OF TPE SENATE MONDAlf  :!

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L NRC HEARINGS BEFORE CONGRESS 6=::

(FROM FORMATION OF NRC TO END OF FY 1975)

  • 2/5/75 JOINT COMMITTEE ON ATOMIC ENERGY AND COMMITTEE ON .. ... .?

GOVERNMENT OPERATIONS (SENATE) E7" NUCLEAR REGULATION COMMISSION ACTION REQURING SAFETY @.:  :

INSPECTIONS WHICH RESULTED IN SHUTDOWN OF CERTAIN NUCLEAR POWERPLANTS -

NRC Witnesses: Chairman Anders.

Commissioner Mason ,

Mr. Kouts Mr. Case .

Mr. Knuth Mr. Stello 2/20/75 JOINT COMMITTEE ON ATOMIC ENERGY Subcommittee on Legislation p, NRC FY 1975 SUPPLEMENTAL AUTHORIZATION W  :

NRC Witnesses: Chairman Anders Commissioner Mason j

Mr. Gossick 3/5/75 COMMITTEE ON APPROPRIATIONS (HOUSE) .

Subcommittee on Public Works NRC FY 1975 SUPPLEMENTAL APPROPRIATIONS E NRC Witnesses: Chairman Anders lj

> Commissioner Rowden Commissioner Mason -

Commissioner Gilinsky E' Commissioner Kennedy ,

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Mr. Gossick f!

3/19/75 JOINT COMMITTEE ON ATOMIC ENERGY .

Subcommittee on Legislation '

NRC AUTHORIZING LEGISLATION FY 1976  ;.l NRC Witnesses: Chairman Anders 1 Mr. Gossick l 4/21/75 COMMITTEE ON APPROPRI ATIONS (HOUSE)

Subcommittee on Public Works NRC APPROPRIATIONS FY 1976 AND TRAtlSITION ,

NRC Witnesses: Chairman Anders t. .

Mr. Gossick -

s 4/22/75 COMMITTEE ON APPROPRI ATIONS (SENATE) ,

Subcommittee on Public Works .;

NRC APPROPRIATIONS FY 1976 AND TRANSITION ,

'NRC Witnesses: Chairmaa Anders

. Mr. Gossick

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4/24/75 COMMITTEEONGOVERNMENTOPERATIONS(SENATE) e EXPORT RE0RGANIZATION ACT OF 1975(S.1439) :sf NRC Witnesses: H. J. Larson R. G. Page {.j 4/28/75 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Environment '

OVERSIGHT HEARINGS ON NUCLEAR ENERGY - OVERVIEW 0F ...

THE MAJOR ISSUES ((

E NRC Witness: Chairman Anders ., ,

4/29/75 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Environment OVERSIGHT HEARINGS ON NUCLEAR ENERGY - OVERVIEW 0F p .

THE t%JOR ISSUES M

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NRC Witness: Mr. Kouts 4/30/75 COMMITTEEONGOVERNMENTOPERATIONS(SENATE)

EXPORT REORGANIZATION ACT OF .1975 (S.1439)

NRC Witness: Chairman Anders 5/2/75 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee. on Energy and the Environment 0VERSIGHT HEARINGS ON NUCLEAR ENERGY - OVERVIEW OF

~ THE MAJOR ISSUES-NRC Witness: Commissioner Gilinsky p -

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  • 6/25/75 JOINT COMMITTEE ON ATOMIC ENERGY [

PROPOSED NUCLEAR POWERPLANT SITING & LICENSING LEGISLATION NRC Witnesses: Commissioner Rowden Commissioner Mason Commissioner Kennedy Mr. Gossick Mr. Case 7/22/75 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Environment OVERSIGHT HEARINGS ON NUCLEAR ENERGY - INTERNATIONAL PROLIFERo. TION OF NUCLEAR TECHNOLOGY NRC Witness: Commissioner Gilinsky 7/29/75 COMMITTEE ON APPROPRIATIONS (SENATE)

Subcomittee on Public Works NRC FY 1976 APPROPRIATIONS (INCLUDING TRANSITION PERIOD) . . .

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. Mr. Gossick E p

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  • - 9/23/75' JOINT COMMITTEE ON ATOMIC ENERGY Subcommittee on Legislation TO AMEND & EXTEND THE PRICE-ANDERSON ACT (H.R. 8631)

NRC Witnesses: Chairman Anders .  ;

Commissioner Rowden .

Mr. Strauss  ; .

Mr. Saltzman ..

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  • - 10/30/75- COMMITTEE ON INTERNATIONAL RELATIONS (HOUSE)

Subcommittee on International Security and Scientific Affairs  ; ,

NUCLEAR PROLIFERATION: FUTURE U.S. FOREIGN POLICY IMPLICATIONS  :

NRC Witness: Commissioner Kennedy  ; .?

  • 10/31/75 JOINT COMMITTEE ON ATOMIC ENERGY [

OPEN MARKUP ON H.R. 8631 and S. 2568:- PRICE-ANDERSON p~ ,

ACT AMENDMENTS i

NRC Witnesses: Chairman Anders Mr. Levine ,

11/19/75 JOINT COMMITTEE ON ATOMIC ENERGY STORAGE & DISPOSAL OF RADI0 ACTIVE WASTE M NRC Witness: Mr. Chapman ,

12/2/75 JOINT COMMITTEE ON ATOMIC ENERGY NUCLEAR FUEL ASSURANCE ACT (S. 2035, H.R. 8401)

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NRC Witnesses: Chairman Anders Commissioner Gilinsky g...

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  • 1/29/76 JOINT COMMITTEE ON' ATOMIC ENERGY -

NRC FY 1977 AUTHORIZATION ...

NRC Witnesses: Chairman Anders E Mr. Rusche E Mr. Gossick -

,,, if 2/4/76 COMMITTEE ON THE JUDICIARY (SENATE) -

Subcommittee on Antitrust and Monopoly ANTITRUST REVIEW FUNCTIONS OF NRC is ~

NRC Witness: Mr. Saltzman ,

2/17/76 JOINT COMMITTEE ON ATOMIC ENERGY ....

NRC FY 1977 AUTHRIZATION E NRC Witnesses: Chairman Anders [

Mr. Rusche f Mr. Kouts F2

  • E 2/18/76 JOINT COMMITTEE ON ATOMIC ENERGY .

2/23/76 INVESTIGATION OF CHARGES RELATING TO REACTOR SAFETY 2/24/76' NRC Witnesses: Chairman Anders -

3/2/76 Commissioner Mason  !=

P 3/4/76 Mr. Moeller Mr. Strauss E Commissioner Rowden F-Commissioner Kennedy E Conmissioner Gilinsky i" Mr. Rusche Mr. Stello [.).

e Mr. Minogue  !+

Mr. Engelhardt Mr. Vassallo Mr. Yore Mr. Rosenthal Mr. Buck 2/26/76 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Envirvonment 0VERSIGHT HEARINGS ON NUCLE \R ENERGY - SAFEGUARDS IN THE DOMESTIC NUCLEAR INDUSTR NRC Witness: Mr. Chapmar r l

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3/9/76 COMMITTEE ON APPROPRIATIONS (HOUSE).

Subcommittee on Public Works NRC APPROPRIATIONS FOR FY 1977 ,

NRC Witnesses: Chairman Anders ,,,,

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NRC Senior Staff =

3/11/76 COMMITTEE ON APPROPRIATIONS (SENATE)

Subcommittee on Public Works NRC APPROPRIATIONS FOR FY 1977 -

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NRC Witnesses: Chairinan Anders Mr. Gossick NRC Senior Staff '

3/12/76 COMMITTEE ON GOVERNMENT OPERATIONS (HOUSE)

Subcommittee on Conservation, Energy and Natural Resources -

LOW-LEVEL RADI0 ACTIVE WASTE NRC Witness: Mr. Cunningham

  • s/19/76 JOINT COMMITTEE ON ATOMIC ENERGY HRC FY 1977 AUTHORIZATION (SAFEGUARDS)

NRC Witnesses: Mr. Chapman Mr. Davis Commissioner Kennedy Mr. Friedman  !.;.

Mr. Minogue p*

5/3/76 COMMITTEE ON THE JUDICIARY (HOUSE) M Subcommittee on Administrative Practice and Procedure n

ADMINISTRATIVE REFORM ~

URC Witness: Mr. Strauss t 5/12/76 JOINT COMMITTEE ON ATOMIC ENERGY Subcommittee on Environment and Safety RADI0 ACTIVE WASTE MANAGEMENT t NRC Witnesses: Chairman Rowden !J.

Mr. Chapman -!

Mr. Bishop '

5/25/76 COMMITTEE ON INTERNATIONAL RELATIONS (HOUSE)

Subcommittee on International Resources, Food and Energy RESOURCE DEVELOPMEllT IN SOUTH AFRICA & U.S. POLICY NRC Witnesses: Mr. Kerr -

Mr. Strauss 5/27/76 COMMITTEE ON FOREIGN RELATIONS (SENATE)

Subcommittee on African Affairs 9 PROPOSED EXPORT OF NUCLEAR POWER REACTORS TO SOUTH AFRICA 7 NRC Witness: Mr. Kerr .,

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' NUCLEAR PROLIFERATION AND REPROCESSING NRC Witness: Comissioner Gilinsky 6/11/76 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Environment '

REACTOR SAFETY STUDY (RASMUSSEN REPORT) _

NRC Witness: Mr. Levine '

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Subcomittee on Energy and the Environment  !

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NRC Witness: Mr. Denton

  • 7/28/76 JOINT COMMITTEE ON ATOMIC ENERGY b" EXPORT RE0RGANIZATION ACT (S.1439) Q NRC Witness: Chairman Rowden .
  • 8/27/76 JOINT COMMITTEE ON ATOMIC ENERGY EXTENT & SIGNIFICANCE OF THE IMPACT ON REACTOR LICENSING p

, OF COURT DECISIONS p NRC Witness: Chairman Rowden Mr. Bishop a 8/ 31/ 76 JOINT COMf4ITTEE ON ATOMIC E!!ERGY  :

PROPOSED NUCLEAR EXPLOSIVE PROLIFERATION CONTROL ACT OF 1976 NRC Witness: Chairman Rowden  :

9/17/76 COMMITTEE ON GOVERNMENT OPEPATIONS (HOUSE) '

Subcommittee on Conservation, Energy and Natural Resources IMPACT ON REACTOR LICENSING OF TWO COURT DECISIONS RELATED q TO BACKEND OF FUEL CYCLE .

NRC Witness: Mr. Strauss M

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  • 9/20/76 C0le!ITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

Subcommittee on Energy and the Environment  :

RECYCLING 0F PLUT0NIUM .

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  • COMMITTEE ON INTERIOR AND INSULAR AFFAIRS s 9/28/76 *

' Subcommittee on Energy and the Environment RECYCLIllG 0F PLUT0NIUM NRC Witness: Chairman Rowden ,

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Mr. Volgenau 3/8/77 COMMITTEE ON APPROPRIATIONS (HOUSE)

Subcommittee on Public Works '

NRC FY 1978 APPROPRIATIONS '

NRC Witnesses: Chairman Rowden Mr. Gossick  :

NRC Senior Staff 3/8/77 COMMITTEE ON GOVERNMENT OPERATIONS (HOUSE)

Subcommittee on Energy, Environment and Natural Resources NUCLEAR WASTE DISPOSAL COSTS (WEST VALLEY, NEW YORK)

NRC Witness: Mr. Smi th 3/10/77 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE)

OVERVIEW 0F NRC BUDGET NRC Witness: Chairman Rowden 3/30/77 COMMITTEE ON THE; JUDICIARY (HOUSE) .

Seccommittee on Administrative Law and Governmental Relations -

PUoLIC FUNDING OF INTERVENORS IN FEDERAL AGENCY PROCEEDINGS NRC Witness: Mr. Strauss 3/30/77 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE) 4/1/77 Subcommittee on Nuclear Regulation >

4/4/77 NRC FY 1978 AUTHORIZATION NRC Witnesses: Mr. Gossick .j Mr. Strauss a NRC Senior Staff .j 4/8/77 COMMITTEE ON GOVERNMEHTAL AFFAIRS (SENATE) "

NUCLEAR WASTE MANAGEMENT AND FEDERAL ENERGY REORGANIZATION NRC Witness: Mr. Smith  ;;

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  • 4/21/77 COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION (HOUSE)

Subcommittee on Investigations and Review o IMPLEMENTATION OF THE FEDERAL WATER POLLUTION CONTROL li ACT: 1977  ? '

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NRC Senior Staff sm"l y 5/5/77 COMMITTEE ON APPROPRIATIONS (SENATE) =.,.

Subcommittee on Public Works '

NRC FY 1978 APPROPRIATIONS -

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NUCLEAR REACTOR SECURITY AGAINST SAB0TAGE -

NRC Witness: Mr. Case 5/6/77 COMMITTEE ON GOVERNMENT AFFAIRS (SENATE)

Sub:ommittee on Energy, Nuclear Proliferation and Federal Services -

NUCLEAR PROLIFERATION LEGISLATION NRC Witnesses: Chairman Rowden '

Commissioner Kennedy

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5/19/77 COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE (HOUSE)

Subcommittee on Energy and Power _

STATUS OF NUCLEAR PLANTS / LICENSING PROCESS  :

NRC Witness: Mr. Case

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. and Subcommittee on International Economic Policy and Trade .R flUCLEAR ANTIPROLIFERATION ACT OF 1977 -

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  • . 6/13/77- C0!51ITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

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STATES RIGHTS, MORATORIA, AND NRC LICENSING REFORM Se NRC Witness: Chairman Rowden g 6/15/77' COMMITTEE ON SCIENCE AND TECHNOLOGY (HOUSE)

Subcommittee on Environment and the Atmosphere DECOMMISSIONING & DECONTAMINATION .

Mr. Cunningham -

NRC Witness:

  • COMMITTEE ON COMMERCE, SCIENCE AND TECHNOLOGY-(SENATE) 6/28/77 Subcommittee on Science, Technology and Space -

RADIATION HEALTH & SAFETY NRC Witness: Mr. Gossick .

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Subcommittee on Energy and the Environment '

OVERSIGHT ON DIABLO CANYON NUCLEAR GENERATING PLANT -

NRC Witness: Mr. Case

, 7/11/77 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE)

Subcommittee on Nuclear Regulation '

. CLINCH RIVER BREEDER REACTOR NRC Witness: Mr. Gossick 7/12/77 COMMITTEE ON INTERNATIONAL RELATIONS (HOUSE)

Subcommittee on Afria '

EXPORT LICENSE REVIEW PROCEDURES (?)

7/29/77 COMMITTEE ON INTERIOR AND INSULAR AFFAIRS (HOUSE)

F Subcommittee on Energy and the Environment ALLEGATIONS CONCERNING LAX SECURITY IN THE DOMESTIC NUCLEAR INDUSTRY NRC Witnesses
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'8/1/77 COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE (HOUS'E)

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Subcommittee on Environment, Energy and Natural Resources NUCLEAR POWER COSTS .

NRC Witness: Mr. Smith

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Submittee on Energy Research and Development WCLEAR NONPROLIFERATION POLICY ACT OF 1977 NRC Witnesses: Chairman Hendrie E Connissioner Gilinsky F 9/27/77 COMMITTEE ON SCIENCE AND TECHNOLOGY (HOUSE) b Subcommittee on Environment and the Atmosphere ENVIRONMENT AND HEALTH RESEARCH RELATED TO NUCLEAR FUEL CYCLE NRC Witnesses: Chairman Hendrie Mr. Levine 10/13/77 COMMITTEE ON PUBLIC WORKS Af1D TRANSPORTATION (HOUSE)

Subcommittee on Public Buildings and Grounds BUILDIi4G JDR NRC . . .

NRC Witness:' Mr. Gossick .

10/13/77 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE)

Subcommittee on Nuclear Regulation '

STAFF HANDLING 0F NORTH ANNA CASE  ;;

NRC Witnesses: Chairman Hendrie Mr. Gossick 5 Mr. Case g

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NRC FY 1979 BUDGET AND FY 1978 SUPPLEMENTAL PROPOSALS h+

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Mr. Case Mr. Levine [li e 1 >

Mr. Smith l4 Mr. Volgenau I:55

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Subcommittee on Energy and Power H.R. 9852 Afl0 LICENSING REFORM NRC Witness: Chairman Hendrie 2/8/78 COMMITTEEONENVIRONMENTANDPUBLICWORKS(SENATE)

Subcommittee on Nuclear Regulation P j NRC FY 1979 BUDGET NRC Witnesses: Chairman Hendrie

, V SEE ALSO TESTIMONIES GIVEN ON 2-6-78 for- ',

Mr. Minogue 1 Mr. Case Mr. Levine '

Mr. Smith Mr. Gossick =l Mr. Barry r 'l Mr. Volgenau []

1 2/15/78 COMMITTEEONINTERSTATE&FOREIGNCOMMERCE(HOUSE) '

N Subcommittee on Energy and Power U NRC FY 1979 BUDGET AND FY 1978 SUPPLEMENTAL PROPOSALS NRC Witnesses" Chairman Hendrie SEE ALSO TESTIMONIES GIVEN ON 2-6-78 for y 14 Mr. Minogue j;;

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Commissioner Kennedy

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l 2/28/78 COMMITTEE ON GOVERNMENT OPERATIONS Subcommittee on Environment, Energy & Natural Resources SPENT FUEL STORAGE FACILITY =

NRC Witness: 'Mr. Meyers 3/1/78 COMMITTEEONAPPROPRIATIONS(HOUSE)

Subcommittee on Public Works NRC FY 1979 BUDGET E -

NRC Witness: Chairman Hendrie r

3/22/78 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE)

Ju6 committee on fluclear Regulation NUCLEAR WASTE MANAGEMENT NRC Witnesses Commissioner Gilinsky -

g Mr. Smith R p E 3/23/78 COMMITTEE ON GOVERNMENTAL AFFAIRS (SENATE)

Subcommittee on Nuclear Proliferation, Energy and ,

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Federal Services TERRORISM NRC Witness: Commissioner Gilinsky 4/10/78 COMMITTEE ON ENVIRONMENT Af1D PUBLIC WORKS (SENATE)

Subcommittee on fluclear Regulation SAFETY RESEARCH PROGRAMS NRC Witnesses: 'Mr. Levine Mr. Murley Mr. Minogue .

4/11/78 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS (SENATE)

/ NRC BUILDIt!G CONSOLIDATION NRC Witness: Chairman Hendrie 4/19/78 COMMITTEE ON GOVERNMENT OPERATIONS p Subcommittee on Environment, Energy & Natural Resources D FEDERAL RADIATION & PROTECTION EFFORTS "

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a 4/18/78 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS Subcommittee on Environment and Public Works .

ATOMIC SAFETY AND LICENSING BOARDS .. .. el NRC Witnesses: Mr. Yore =j Mr. Lawroski :i" 4/19/78 COMMITTEE ON GOVERNMENT OPERATIONS -

Subcommittee on Environment, Energy & Natural Resources t.;

FEDEPAL RADIATION & PROTECTION EFFORTS C l. ..

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NRC Witness: Mr. Minogue !I! 2, u :y .

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E CURREhT ISSUES TABLE OF CONTENTS E

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1. .Conran allegations concerning insufficiency of KRC safeguards l requirements.  :

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2. Union of Concerned Scientists Petitien

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3. Current Litigation S: E
4. Radiography Overexposures -

. 5. Increasing Public' Participation  ;

6. Seabrook  ;
7. Diablo Canyon
8. Consolidation of NRC Headquarters p .
9. Plutonium Recycle ll.:
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CONRAN ALLEGATIONS CONCERNING INSUFFICIENCY OF NRC SAFEGUARDS REQUIREMENTS !E

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(*i In April 1977, Mr. James H. Conran, then on the staff of NRC's Office of '=

Nuclear Material Safety and Safeguards, first made certain public is allegations concerning the adequacy of NRC's safeguards programs. This h has since grown (and continues to grow) into a major public issue y concerning the adequacy of:

-- NRC safeguards;

-- NRC's candidness in infoming the Congress;

-- NRC's treatment of dissenting views of the staff. "

A substantial amount of Comissioner and NRC time has since been, and is still being, spent responding to these allegations. Conran's concerns centered upon whether in 1966 a diversion of highly enriched uranium a might have occurred at NUMEC-Apollo or elsewhere. The Congress (pri- 1 marily Congressman Udall's and Congressman Moss' Committees) has focused on whether this weapons-grade special nuclear material was covertly ,

diverted to Israel -- as some have speculated.

In reponse to those initial charges, the NRC established a special task force, chaired by Dr. Roger J. Mattson, who was Director of the Division of Siting, Health, and Safeguards Standards in the NRC Office of Stan-dards Development. The task force carefully examined each of Mr.

Conran's concerns and concluded that, while certain of his views had technical merit, it did not agree with his general conclusion that present safeguards are deficient to an extent which could pose serious potential ha::ards to the public health and safety.

However, the task force did agree that there were areas in which im-provements could be made, and accordingly submitted recommendations to the Conunission. Even though such a diversion, if it did occur, predates NRC by many years, it has considerable significance for current h7C safeguards policies. Most importantly, it points out that diversions of SSSM by even the highest levels of a licensee's management must, to be conservative, be considered possible. m In June 1977 the Commission reviewed the task force's recommendations IJ.

and agreed they offer a sound basis for further improving the NRC i safeguards program. It then directed the staff to take the following steps:

1. Further improve NRC's access to safeguards-related information gathered by other sources, such as doe, DoD, and the intelligence Community.
2. Carefully review current procedures for disseminating safeguards infomation to the NRC safeguards staff, to ensure that they routinely receive information essential to the performance of their safeguards function. .

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Conran - 2

(; 3. Develop and circulate for use by relevant staff members a set of operating assumptions regarding:

a. The relative ease of fabricating clandestine fission explo- g sives.
b. The characteristics of possible adversaries who might direct their activities against a nuclear facility
c. The reliability and utility of information received from m outside sources.

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4. Prepare a paper for Commission review which discusses in depth and provides appropriate documentation for the current NRC. assumptions concerning threat level and adversary characteristics.
5. Continue assigning a high priority to development of a systematic safeguards licensing review methodology and improved guidance on accept-able levels of protection against theft.
6. Continue to issue statements to the public concerning safeguards issues which clearly reflect inherent uncertainties. If a safeguards incident does occur, NRC public statements must accurately describe the circumstances, the remedial action taken, and the resolution of the problem. (These action items were accomplished)

Consik rable controversy related to the Apollo matter ensued from a "no evidence of diversion" statement made by the ED0 before the House Subcommittee on Energy and Environment on July 29, 1977 and the House Subcommittee on Energy and Power, August 8, 1977. On August 4, 1977 NRC public release of inventory difference information contained a similar blanket state-ment that there was no evidence that any significant amount of special nuclear material had ever been stolen or. diverted. .

The complicating factor was that the statements failed to reflect the fact that the Commission had been previously briefed by the CIA staff concerning the latter's view of the events at NUMEC-Apollo in 1966. .

Therefore, NRC testimony should have been more explicitly qualifi~ed as L oertaining only to post-1968 events at licensed facilities, which were covered by the NRC public release of inventory differences.

At a subsequent hearing conducted by Congressman Udall's committee, the Ccamissioners gave testimony pertinent to the general issue.

In February 1978, Conran made further allegations - this time about safeguards derelictions of certain past and present NRC officials. In a lengthy correspondence, the Commission has repeatedly requested Conran to submit his specific charges in writing so that they can be appro-priately considered. However, Conran has delayed producing his state-ment of charges. He cla h that the delay is attributable to the denial of information requested by him, the delay in providing counsel (which was given), and certain interactions between OGC and him. Conran has, however, produced a number of " preliminary" statements, some of which l were supplied by him to the Congress.

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Conran Allegations - 3 l..

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... :11 In a letter dated May 8,1978, comenting on Conran's latest charges, I'i (f

Congressman Udall stated that "there is ample reason to conclude that k his allegations do have a substantial factual basis. Therefore, I do is not understand the failure to investigate his charges, even though they E have not been formally presented to you. Furthermore, in light of this ,

,H Moreover, Congressman Udall considered the OGC-0IA report on the ED0's testimony inadequate, saying that "it has revealed a severe weakness in

.the system." 3 se sj The Comission currently has the entire matter under active consid-eration and a response to the May 8 Udall letter is being reviewed. ,..

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UNION OF CONCERNED SCIENTISTS (UCS) PETITION f![

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On November 4, 1977, the UCS filed with NRC a " Petition for Emergency t

and Remedial Relief," alleging failures to meet specified Commission regulations regarding fire protection and qualification of safety- -

related electrical equipment to function in a post-accident environment. .

The UCS based its petition on results reported in August 1977 by Sandia Laboratories, which had been conducting Qualification Testing Evaluation -

Programs and Fire Protection Research Programs for the NRC. UCS alleged that the test results demonstrated that the specified regulations had ._

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been violated and that a threat to public health and safety existed.

In reviewing the petition, the Commission drew upon a number of detailed technical submissions from the NRC staff, the UCS, and the public. In a Memorandum and Order dated April 13, 1978, the Commission determined '

that the specific regulations in question were not being violated. The Commission further: g

-- directed the staff to review whether the Commission's fire protection research program could be beneficially expedited;

-- affirmed the staff's practice of independent review of licensee design and analyses, qualification documentation and quality  :

assurance programs of particular components as being qualified for nuclear service; ,

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-- denied the petitioner's request to halt all licensing until l applicants had shown compliance with specific regulations;

-- denied the petitioner's request to suspend all construction activities involving connectors or relating to electrical cables; and

-- denied the petitioner's request to shut down all operating reactors until the operators showed compliance with specific regulations.

On May 2, 1978, the UCS submitted a Petition for Reconsideration of the Commission's April 13 Memorandum and Order. The Commission currently has this petition under reiiew.

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