ML20198G838
| ML20198G838 | |
| Person / Time | |
|---|---|
| Issue date: | 08/13/1997 |
| From: | Collins S NRC (Affiliation Not Assigned) |
| To: | Brown G AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 9709050137 | |
| Download: ML20198G838 (7) | |
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~) e NUCLEAR REGULATORY COMMISSION WASHINGTON. O c 206M 0001
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% .". ., * # o ;ast 13, igen Mr. Ge+d W. Brown
. _ Route 2 12676 River Road g North Branch, MN 55056
SUBJECT:
THERMAL SCIENCE, INCORPORATED
Dear Mr. Brown:
In a letter dated May 14,1997, to Dr. Shirley Ann Jackson, Chairman of the U.S. Nuclear Regulatory Commission (NRC), you requested an analysis of the NRC's actions conceming Thermal Sciences, incorporated (TGI) and Five Star Products (FSP). Chairman Jackson has asked me to respond to your letter.
You suogested that there is an inconsistency between how the NRC addressed concerns about FSP and how the NRC addressed concems about TSI. Specifically, you questioned why the NRC has not prohibited TSI from selling its products to the nuclear industry in light of the NRC's treatment of FSP. While the NRC has deternined that there are potentially significant regulatory and safety issues associated with both FSP and TSI, as explained below, the NRC does not think it necessary to issue an Order prohibiting TSI from selling its products (primarily Thermo-Lag 330) to the nuclear industry as it did in the case of FSP.
The NRC issued the FSP Order primarily because it was prevented from inspecting FSP's quality assurance / quality contrcl (QA/QC) program and because FSP had been supplying products to the nuclear industry for installation in " safety-related" applications. In addition, the Order confirmed FSP's decision to discontinue that QA/QC program and reiterated that the NRC must inspect any QA/QC program rehtated by FSP. The maintenance 6f an approved QA/QC program is a prerequisite for elling materials designated c: - -Jety-related
.p under 10 CFR Part 50, Appendix 0. Moreover, the NRC Order does not prohibit FSP from selling " commercial grade" products to the nuclear industry. Commercial grade products g cannot be installed in " safety-related" app!ications at nuclear power plants unless they are
" dedicated" for that particular use in accordance with the provisions of 10 CFR Part 21, p Unlike the purchasers of FSP's products, most of the NRC licensees who have purchased
-sM TSI's products have done so on a commercial grade basis. Accordingly, the NRC concluded by that it was not necessary to issue such an Order to TSI. q .
Ufi gjj decause of NRC staff concems regarding the results of TSl's tests of its Thermo-Lag g products the NRC contracted with Sandia National Laboratories and the National Institutes of J Standards and Technology, two independent testing facili+ies, for its own tests of Thermo-Lag y'y products. These tests, as well as tests by NRC licensees and the nuclear industry, demonstrated that while Thermo-Lag did not meet the claims thai TSI made for it, it can p{, provide some level of fire protection if it is properly manufactured and installed. Accordingly, g the NRC staff has concluded that NRC licensees may continue to insta' Thermo-Leg as long ,
as they follow NRC guidelines.
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G. Brown In December,1994, the NRC staff sent letters to all NRC licer; sees that had installecV Thermo-Lag fire barriers. In these letters, the staff stated that each licesee mup6 ave valid information, independent of TSI. on specific Thermo-Lag materials instalbdpMfs plant if it intenos to retain or expand its Thermo-Lag barrier installations. Furtherpote, this NRC guidcnce dNets nuclear power plant licensees to assess the adequpcf of Thermo-Lag materials that are currently installed or thct may be installed in tprtuture. Moreover, the guidance concludes that it is not enough for licensees to relyjan generic information on Thermo-Lag materials Instead, NRC licensees are resppnsible for the quality of installed Thermo-Lag barriers at their plants. The NRC staff r vfews the quality of the instajiations during NRC inspections. In addition, NRC license using Thermo-Lag materials have implemented additional measures to compens for the deficiencies identified by the NRC.
Finally, as you note in your letter, a fed
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I grand jury indicted both Industrial Testing Laboratories (ITL) and its president five counts of making false statements to the NRC and both ITL and its president e red guilty pleas to all five counts. But while both TSI and its President, Ruben FeldmarJrwere also indicted by the same grand jery on similar charges (including a charge of co iracy), both were ultimately acquitted of all charges in a criminal trial. The NRC has n issued a Notice of Violation (NOV) and a Proposed Civil Penalty of
$900,000 related t everal alleged false and/or misleading communications by TSI to the NRC. TSI has allenged the NOV in Federal D strict Court in St. Louis .n1 that challenge is still pending ,
if you ve questions regarding this response, please call Chris Bajwa, Reactor Systems En eer, Plant Systems Branch, Office of Nuclear Reactor Regulation, at 301-415-i237.
Sincerely, Samuel J. ollins, Director Office of Nuclear Reactor Regulation DISTRIBL' TION:
JLee (NRR-97-A-0060) PMagnanelli (GT 970387)
CBajwa KBarer (GT 970387)
SWest GCwalina Public JLieberman Central Files SPLB PJF OEDO R/F OEDO (GT 970387)
DOCUMENT NAME: A:\97A0060C. DOC *Sce previous conmrrence OFFICE NRR:SPLB NRR:SPLB NRR:DRIL NRR:D:DSSA '
l lNRR:SPLB l NAME CBajwa* SWest* JLee* LMarsh* GHolahan*
lDATE 06/11/97 06/25/97 06/26/97 06/25/97 06/29/97 OFFICE TechEditor NRR:ADT I NRR:D OE:D l l NRR:PSIB l NAME BCature* TMartin' SColkns* RGallo" JLieberman*
DVE 06/11/97 06/30/97 06/30/97 06/26/97 )07/29/97 j OFFICE EDgf~ Chairman OGC"
~
l NAME JC @ LJChandler DATE 03!// /97 07/29/97 07 {97
G. Brown .
In December,1994, the NRC staff sent letters to all NRC licensees that had installed Thermo-Lag fire barriers. In these letters, the staff stated that each licensee must have va!id information, independent of TSI, on specific Thenno-Lag materials installed at its plant if it intends to retain or exoand its Thermo-Lag barrier installations. Furthermore, this NRC
guidance directs nuclear power plant licensees to assess the adequacy of Thermo-Lag materials that are currently installed or that may be installed in the future. Moreover, t guidance concludes that it is not enough for licensees to rely on generic information .
Thermo-Lag materials. Instead, NRC licensees are responsible for the quality of i talled Thermo-Lag barriers at their plants. The NRC staff reviews the quality of the ins llations during NRC inspections. In addition, NRC licensees using Thermo-Lag matori s have implemented additional measures to compensate for the deficiencies identifi by the NRC.
Finally, as you note in your letter, a federal grand jury indicted both Indus tal Testing Laboratories (ITL) and its president on five counts of making false state ents to the NRC and both ITL and its president entered guilty pleas to all five counts. t while both TSI and its President, Ruben Feldman, were also indicted by the same gran4 jury on similar charges (including a charge of conspiracy), both were ultimately acquitted o all charges in a criminal trial. The NRC has now issued a Notice of Violation (NOV) and roposed Civil Penalty of
$900,000 related to several alleged false and/or misleading co unications by TSI to the NRC, some of which ware at issue in the criminal trial. TSI ha cha!!enged the NOV in Federel District Court in St. Louis and that challenge is still p nding.
If you have questions regarding this response, please call hris Bajwa, Reactor Systems Engineer, Plant Systems Branch, Office of Nuclear Rea r Regulation, at 301-415-1237.
Sincerely, Samu J. Collins, Director Offic of Nuclear Reactor Regulation DISTRIBUTION:
JLee (NRR-97-A-0060) PMagnanelli ( 970387)
CBajwa KBohrer (GT 0387)
SWest GCwalina Public JLieberma Central Files SPLC R/F OEDO R/F OEDO (GT 970387)
DOCUMENT NAME: A:\97A006 'MOC *See previous concurrence l OFFICE NRR:SPLB l MRR:SP,LQ NRR:DRIL l NRR:SPLB NRR:D:DSSA l NAME CBa,wa* / SWes@ WLee* LMarsh* GHolahan*
DATE 06/11/97 / 06/2575T7 R 1M '06/26/97 06/25/97 06/29/97
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OFFICE TechEditor NRR:PSIB I NAME BCalure*
NRR:ADT l TMartin*
NRR:D l OE:DQ $
SCollins* RGallo* JLieberman*U DATE 06/11/97 'e 06/30/97 06/30/97 06/26/97 07/$97 OFFICE EDO l Chairr$n l OGC(//-f @g NAME JCal an . l.-kWpy@t# (b DATE 07/ /97 07/ /97 07/M/97 O'FFICIAL RECURDTUPT
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s G. Brown _
Thermo-Lag fire barriers, the NRC staff stated that the licensee must have v information, ,
independent of TSl, on specific Thermo-Lag materials installed at its pla it intends to
, retain or expand its TP.armo-Lag barrier installations. In sum, NRC lic ees are responsible
_ for the quality of installed Thermo-Lag barriers at their plants. The staff reviews the quality of the installations during NRC inspections.
If you have any questions regarding this response, please co act Chris Bajwa, Reactor
- Systems Engineer, Plant Systems Branch, Office of Nucle eactor Regulation, at 301-415-1237.
Sincer y, Samuel J. C,ollins, Director O" ice of Nuclear Reactor Regulation DISTRIBUTION:
JLee (NRR-97-A 0060)
CBajwa SWert i Public Central Files SPLB R/F OEDO R/F OEDO (GT 70387)
PMagna .lli(GT 970387)
Kbohr (GT 970387)
GC lina J eberman DOCUMENT NAME: A:\97A0060C.DCU *See previous concurrence OFFICE NAME NRR:SPLB CBajwa*
l NRR:SPLB l SWest*
NRR:DRIL JLee*
[_ NRR:SPLB l NRR:MSAjj LMarsh* GHodManhT DATE 06/11/97 06/25/97f 06/26/97 06/25/97 V 06$97 OFFICE NAME TechEditor l NRfADT l h$ l NRR:PStB l OE:D l
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BCalure* Tr$rtn K 6iR RGallo* JLieberman*
DATE 06/11/97 06/30/97 %Q/97 06/26/97 06/27/97 OFFICE- EDO gg l Chairman l NAME JCallanP GL-DATE Oty[f/97 06/ /97 ,
OFFICIAL RECORD COPY b
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- G. Brown /
Thermo-Lag fire barriers, the NRC staff stated that the licensee,rnust have valid information, independent of TSI, on specific Thermo-Leg materials installed'at its plant if it intends to retain or expand its Thermo-Lag barrier installations. /'
If you have any quections regarding this response, please contact Chris Bajwa, Reactor Systems Engineer, Plant Systems Branch, Office of Nuclear Reactor Regulation, at 301-415-1237.
Sincerely, i
f L / Samuel J. Collins, Director Office of Nuclear Reactor Regulation 4-DISTRIBUTION: ,
- JLee (NRR-97-A-0060f CBajwa - /
SWest '
Public /
Central Files /
SPLB R/F /
OEDO R/F/
i OEDO 970387)
PMag nelli (GT 9703G7)
Kbo er (GT 970387)
- G ' alina ieberman DOCUMENT NAME: A:\97A0060C. DOC *See previous concurrence OFFICE NRR:SPLB l NRR:SFLB NRR:DRIL NRR:SPLB [ NRR:D:DSSA l NAME CBajwa* SWest* JLee* LMarsh* GHolthan DATE 06/11/97 06/25h7 06/26/97 06/25/97 06/. /97 OFFICE TechEditor l NRRIADT NRR.D NR$ % C, OE TM/Of}'
NAME BCalure* TMartin SCollins RGaj,to Jueberman DATE 06/11/97- 06/ /97 06/ 197 06MP/97 ;06/27/97 OFFICE EDO Chairman i NAME JCallan DATE 06/ /97 06/ /97 OFFTCTAT. RECORD COPY
G. Brown >
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Thermo-Lag fire barriers, the NRC sta4 stated that the licensde must have valid information, inMendent of TSI, on specific Thermo-Lag msterials inst fled at its plant if it intends to retain or expand its Thermo-Lag barrier instaliations.
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If you have any questions regarding this response, pl ase contact Chris Bajwa, Reactor Systems Engineer, Plant Systems Branch, Office ot' uclear Reactor Regulation, at 301-415-1237.
Si cerely, Samuel J. Collins, Director Office of Nuclear Reacto: Regulation DISTRIBUTION:
JLee (NRR-97-A-0060)
CBajwa SWest Public Central Files SPLB R/F OEDO R/F OEDO (GT 970 7)
PMagnanelli ( 970387)
Kbohrer (GT 70387)
GCwalina JLieberm DOCU ENT NAME: A:\97A0060C. DOC *See previous concurrence OyFICE NRR:SPLB l NRR:SPLB l NRR:DRIL l NRR:SPLB, j NRR:D:DSSA l pAME CBajwa* SWest %Ad JLee/)/ [ L LMarshM\l( A. GHolahan
, DATE 06/11/97 06/25/97 0611997 06/JS/97 06/ 197
/ OFFICE NAME TechEditor BCalure*
l NRR:ADT l Tmartin NRR:F-~~T Scollins NRR:PSIB l RGab OE JLieberman l
DATE 06/tl/97 06/ /97 06 /97 06/ /97 06/ /97 OFFICE EDO l Chairman l NAME JCallan DATE 06/ 19'/ 06/ /97 OFFICIAL RECORD COPY
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6 Mr. G.W. Brown Route 2 12676 River Road Noriq Branch, MN 55056 Dear Brown; I am respo ' g to your letter of May 14,1997, to Shirley Jackson, Chairman of the U.S. Nuclear Regulatory mission (NRC). In your letter, you asked why the NRC staff has not prohibited Thermal Scienc ncorporated (TSI), from selling its Thermo-L.sg product to the nuclear industry, In response tot-specific plan \ requests for information to resolve the Therme-Lag issue. many licensees indicated that tfiey would continue to rely to varving degrees on Thermo-Lag fire barriers to satisfy NRC regulations. Therefore, prohibiting all use of Thermo-Lag materials for
, current and future fire barrier in'stallations would remove a realistic option for resolution of the safety issues addressed in Generic Letter 92-08,"Thermo-Lag 330-1 Fire Barriers." in addition, Thermo-Lag 330-1 fire barriers have been demonstrated by tests performed by an independent third party to meet NRC standards.
Nevertheless, the staff has determined that reliance should not be placed on TSI's quality assurance prcgram to assess the adequacy of Thermo-Lag materials that are currently installed or that are installed in the future. The staff has also concluded that it is not ent, ugh for licensees to rely on generic information on Thermo-Lag materials. Therefore, in letters that it sent during December 1994 to the licensees that use Thermo-Lag fire barriers, the NRC staff stated that the licensee must have valid information on specific Thermo-Lag materials installed at its plant if it intends to retain or expand its Thermo-Lag barrier installations.
If you have any questions regarding this response or the staff' evaluation or your concems,-
please contact Chris Bajwa, Reactor Systems Engineer, Plant Syste Branch, Office of Nuclear Reactor Regulation, at 301-415-1237.
Sincerely, Samuel J. Collins, Director Office of Nuclear Rea; tor Regulation Q1STRIBUTION-JLee (NRR-97-A-0060);
CBayra, SWest. '
Public; Central Files; SPLB R/F; OEDO R/F; OEDO (GT 970387), PMagnanelli(GT 970387);
KBohrer (GT 970387)
DOCUMENT NAME: C:%LLEGATION\ CLOSURE \TS!.CLT To recelse a copy of this document, India: ate in the box: "C" = Copy without attachment / enclosure *E' s Copy with attachment!enchsaure "N* = No copy 0FFICE NPR:SPLB l l NRR:SPLB l l NRR:DRll l l NRR:SPLB l l NRR:D:DSSA l NAME CBajwa Olh SWest JLee LMarsh GHolahan DATE l 06/Pl/97 06/ /97 06/ /97 06/ /97 06/ /97 0FFICE Tech Editor l l NRR:DD l l NRia :D l l EDO:D ! Chairman l NAME bCnM(C TMeitin SCottins JCallan _
DATE 06/81/97 06/ /97 06/ /97 06/ /97 06/ /97 0FFICIAL RECORD COPY