ML20154M559

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Partially Withheld SECY-85-148 Discussing Encl Rc Arnold & Eg Wallace 850327 Request for Hearing to Determine Whether Adverse Implications About Mgt Integrity Factually Substantiated
ML20154M559
Person / Time
Site: Crane, 05000000
Issue date: 04/25/1985
From: Plaine H
NRC OFFICE OF THE GENERAL COUNSEL (OGC)
To:
Shared Package
ML20151K691 List:
References
FOIA-85-409, TASK-AINV, TASK-SE SECY-85-148, NUDOCS 8603140331
Download: ML20154M559 (9)


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s April 25, 10a4 CECY-85-148 ADJUDICATORY ISSUt:

(Notation Vote)

For:

The Commission i

From:

Herzel H. E.

Plaine General Counsel

Subject:

REQUEST FOR HEARING BY R. C. ARNOLD AND E. G. WALLACE I

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A ~L Herzel H. E. Plaine General Counsel Attachments:

(1)

Draft letter (2)

Request for hearing

6 Commissioners' comments or consent should be provided directly to the Office of the Secretary by c.o.b. Thursday, May 9, 1985.

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Commission Staff Office comments, if any, should be' submitted to the Commissioners NLT Thursday, May 2, 1985, with an information copy to the Office of the Secretary.

If the paper is of such a nature that it requires additional time for analytical review and comment, the Commissioners and the Secretariat should be apprised of when comm'nts may be expected.

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l Bon. Nunzio J. Palladino, Chairman

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Bon. Thomas M. Roberts, Commissioner 35.1 Ncy M.

Bon. James K. Asselstine, Commissioner Bon. Frederick M. Bernthal, Commissioner Bon. Lando W. tech, Commissioner U.S. Nuclear Regulatory Commission

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Washington, D.C.

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Dear Coranissioners:

In its Memorandum and Order, dated February 25, 1985 l

(the " Order"), in Docket 50-289 the Commission concluded (at pages 55-56) that, in fairness to Mr. Busted, he should be provided an opportunity to request a hearing on whether the Appeal Board's condition barring him from supervisory responsi-bility insofar as the training of non-licensed personnel is i

concerned should be vacated.

To that end, that Order provides that Busted has twenty days af ter the service of that Order to i-request such a hearing and that, if he does request such a

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hearing, the Commission will' assign the matter to an Administra-tive Law Judge for hearing separate from the Three Mile Island Nuclear Station, Unit No. 1

("TMI-1")

restart proceeding.

Similarly, at page 35, the Order states that it will issue a ' notice of hearing instituting a separate hearing (outside-the TMI-l restart proceeding) on TMI-2 leak rate issues s

with respect to certain individuals (who do no.t include the undersigned) to determine the involvement, if any, in such i

TMI-2 leak rate issaes of such individuals "who may now work, or in the future desire to work, at a nuclear facility."

(Presum-ably, the time within which such an individual will be expected l

to respond to such a notice will be established in the order l

issuing that notice.)

As the majority of the Commissioners l

noted in their separate Statement (at page 6) explaining why those hearings should be held outside the TMI-l restart proc-eeding, the purpose of such hearings is so that the individuals t

who might have been involved could be identified as culpable or exonerated, as appropriate - a purpose which has nothing to do with the TMI-l restart proceeding.

,l Although the Order does not specifically addresa the issue, it is the expectation of the undersigned (R.

C.

Arnold and E. G. Wallace) that the Commission would similarly af ford to 4

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son. Nunzio J. Palladino, Chairman Son. Thomas M. Roberts, Commissioner Bon. James K. Asselstine, Commissioner son. Frederick M. Bernthal, Commissioner son. Lando W. Zech, Commissioner March 27, 1985 Page Two the undersigned an opportunity to request a separate hearing to determine whether the adverse implications about the undersigned's management integrity are factually substantiated.

Those adverse implications relate primarily to conclusions drawn by the Staff of the Commission's office of Nuclear Reactor Regulation (" Staff")

and office of Investigation -("OI") regarding the December 5,1979 4

response (" Response") of Metropolitan Edison Company (" Met-Ed") to' the October 25, 1979 Notice - of Violation ("NOV")

issued by the C~mmission's Office of Inspection and Enforcement

("IEE").

o Wallace was the individual primarily charged with the accumula-tion of the information for, and the preparation of, that Response to the Nov, and Arnold reviewed, directed the revision of, and signed that Response as a Senior Vice President of Met-Ed.

On January 23, 1980, IEE issued an evaluation and reply (the " Reply")

l to ' that Response 'which significantly refocused the charges in the l

NOV.

Based thereon, Met-Ed paid in February 1980, the $155,000 i

civil penalty imposed by the NOV.

There can, we submit, be little doubt that the effect of the, statements made concerning the undersigned i,n connection l

with this subject in the series of documents relating thereto issued by OI in its Report No. 1-83-012 (the "OI Report") sometimes l

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referred to as the "Reaten Report Inve s tig ation", the Staff's Reports in NUREG-1020 LD (the "B&W Lawsuit Document Review") and in NUREG-0680 - Supplement No. 5

(" Supplement No.

5"),

and in the order have damaged our good name, reputation, and honor and our l

opportunity to work and to obtain professional advancement.

We, therefore, believe that we would be entitled to a hearing as of right.

But,.given the other examples in the Order cited above of the Commission's intent to provide an opportunity for hearings i

outside the TMI-l restart hearing in the interest of fairness to the individuals affected, we prefer to present our request. for hearing in terms of fairness.

It may be that, some procedure, other than a formal adjudicatory heari,ng, would provide a means to resolve this i

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l Hon. Nunzio J. Palladino, Chairman Bon. Thomas M. Roberts, Commissioner Bon. James K. Asselstine, Commissioner Bon. Frederick M. Bernthal, Connaissioner Bon. Lando W. Sech, Commissioner i

March 27, 1985 Page Three issue with a lesser burden on the Commission's resources.

4 We would be willing to participate in any such other procedure j

so long as it provided an objective forum in which we would have an opportunity to establish that the statements which have thus

  • injured us are not supported by the weight of the evidence.

We also hope that whatever procedure or forum is made available for this purpose would permit the undersigned to address any other issu*es raised by the Commission or its agencies that the Commission judges to be a constraint on our utilization for activities regulated by the Commission.

I We enclose a memorandum discussing the principal I

charges 'against us made in the OI Report'and Supplement No. 5 and reflected in the Order.

As demonstrated in that memorandum, we believe that those charges are not substantiated by the weight of the evidence.

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It is possible that those charges are in large part the product of misunderstanding or misinterpretation on the part of' OI and the Staff.

The TMI-2 accident occurred 'six years ago, and the NOV, the Response and the Reply were written more than five years ago.

By contrast, the OI investigation began more than four years after the accident and the OI Report and Supple-ment No. 5 were completed more than five years after the accident.

To the best of our knowledge the NRC personnel i

involved in the OI investigation and preparation of Supplement No. 5 had not been involved in the 1979 investigation by the

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NRC's Office of Inspection and Enforcement.

That passsage of

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time and prior lack of involvement could have led to the mis-understanding or misinterpretation which we discern.

We are, therefore, furnishing copies of this letter and its enclosure to the Director of OI and to the Staff Executive Director for Operations.

We are also aware "o f the j

fact that this subject has been referred to I&E for considera-i i

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Hon. Nunzio J. Palladino, Chairman Hon. Thomas M. Roberts, Commissioner Hon. James K. Asselstine, Commissioner Bon. Frederick M. Bernthal, Comnissioner Bon. Lando W.

Iech, Commissioner March 27, 1985 Page Four tion of what enforcement action, if any shall be taken by I&E.

We are, therefore, also furnishing to the Director of IEE a copy of this lett'er and its enclosure.

We are also providing copies to GPU Nuclear Corporation.

Respectfully,

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R. C. Arnold 1

E. G. Wallace i

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