IR 05000369/1997001

Informs of NRC Authorization to Exercise Enforcement Discretion & Withdraw NOV Re Insp Repts 50-369/97-01 & 50-370/97-01 on 970324.Violation Was for Failure to Implement Appropriate Emergency Procedures

ML20202D865
Person / Time
Site:	McGuire
Issue date:	11/25/1997
From:	Reyes L NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II)
To:	Barron H DUKE POWER CO.
References
50-369-97-01, 50-369-97-1, 50-370-97-01, 50-370-97-1, EA-97-544, NUDOCS 9712050172
Download: ML20202D865 (4)

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November 25, 1997 EA 97-544 Duke Energy Corporation ATTN: Mr. H. Vice President McGuire Nuclear Station 12700 Hagers Ferry Road Huntersville. NC 28078-8985 SUBJECT: EXERCISE OF ENFORCEMENT DISCRETION (NRC INTEGRATED INSPECTION REPORT 50-369/97-01 AND 50-370/97-01)

Dear Mr. Barron:

This refers to the inspection at McGuire Nuclear Station described in the subject Inspection Report issued 1 March 24, 1997. As a result of that inspection, a Notice of Violation was issued for your failure tc meet the requirements of 10 CFR 70.24. Criticality Accident Requirements. The violation was for failure to implement appropriate emergency procedures and conduct required drills for areas for storage and handling of new (non-irre"iated) fuel or to have an NRC approved exemptien to the requirement.

10 CFR 70.24 requires that each licensee authorized to possess more than a small amount of s)ecial nuclear material (SNM) maintain in each area in which such material is landled, used. or stored a criticality monitoring system which will energize clearly audible alarm signals if accidental criticality occurs. The purpose of 10 CFR 70.24 is to ensure that, if a criticality were to occur during the handling of SNM. personnel would be alerted to the fact and would takn appropriate action.

Most nuclear power plant licensees were granted exem)tions from 10 CFR 70.24 during the construction of their plants as to permit the receipt of the initial core. Generally, part of t1e Part these 70 license exemptions issued were not explicitly renewed when the Part 50 operating license was issued, which contained the combined Part 50 and Part 70 authority. In August 1981, the Tennessee Valley Authority (TVA), in the course of reviewing the operating licenses for its Browns Ferry facilities, noted that the exemption to 10 CFR 70.24 that had been granted during the construction phase had not been explicitly granted in the operating license. By letters dated August 11.

1981 and August 31. 1987. TVA requested an exemption from 10 CFR 70.24. On May 11. 1988. NRC informed TVA that "the previously issued exemptions are still in effect even though the specific provisions of the Part 70 licenses were'not incorporated into the Part 50 license." Notwithstanding the correspondence with TVA. the NRC has determined that in cases where a licensee received the exemption as ) art of the Part 70 license issued during the construction phase, both t1e Part 70 and Part 50 licenses should be examined ,

to determine the status of the exemption. The NRC view now is that unless a licensee's licensing basis specifies otherwise, an exemption expires with the expiration of th; 70 license. The NRC intends to amend 10 CFR 70.24 to j provide for admi. .strative controls in lieu of criticality monitors. n

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DPC 2 Thus, as described in the inspection report, your facility was in violation of 10 CFR 70.24. Numerous other facilities have similar circumstances. The NRC has reconsidered this violation and concluded based on the information discussed above that, although a violation did exist, it is appropriate to exercise enforcement discretion for Violations Involving Special Circumstances in accordance .vith Section VII B.6 of the ' General Statement of Policy and ~~

Procedures for NRC Enforcement Actions' (Enforcement Policy). NUREG-1600. The bases for exercising this discretion are the lack of safety significance of the failure to meet 10 CFR 70.24: the failure of the NRC staff to recognize the need for an exemption during the licensing process: the prior NRC position on this matter documented in its letter of May 11, 1988. to TVA concerning the lack of a need for an exemption for the Browns Ferry plant: and finally. the NRC's intention to amend 10 CFR 70.24 through rulemaking to provide administrative controls in lieu of criticality monitors.

Therefore. I have been authorized after consultation with the Director. Office of Enforcement to exercise enforcement discretion and withdraw the Notice of Violation.

No response to this letter is required. In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice." a copy of this letter will be placed in the NRC Public Document Room (PDR).

Sin ere .

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Luis A. Reyes Regional Adm listrator Docket Nos. 50-369 and 50-370 License Nos. NPF-9 and NPF-17 EA 97-544 cc: (See page 3)

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1 DPC 3 cc: Michael T. Cash Regulatory Compliance Duke Energy Corporation 12700 Hagers Ferry Road Huntersville, NC 28078-8985 G. A. Copp Licensing - EC050 Duke Energy Corporation P. O. Box 1006 Charlotte NC 28201-1006 Paul R. Newton Legal Department (PB05E)

Duke Energy Cor) oration 422 South Churc1 Street Charlotte NC 28242-0001 Mr. Robert P. Gruber Executive Director Public Staff - NCUC P. O. Box 29520 Raleigh, NC 27626-0520 J. Michael McGarry, Ill. Esq.

Winston and Strawn 1400 L Street, NW Washington, D. C. 20005 Mel Fry, Acting Director Division of Radiation Protection N. C. Department of Environmental Health & Natural Resources 3825 Barrett Drive Raleigh. NC 27609-7721 County Manager of Mecklenburg County 720 East Fourth Street Charlotte, NC 28202 Peter R. Harden IV Account Sales Manager Power Systems Field Sales Westinghouse Electric Corporation P. O. Box 7288 Charlotte. NC 28241 cc: (Continue on page 4)

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DPC 4 cc: (Continued)

Dr. John M. Barry, Director Mecklenburg County Department of Environmental Protection 700 North Tryon Street Charlotte, NC 28203 Karen E. Long Assistant Attorney General N. C. Department of Justice P. O. Box 629 Raleigh, NC 27602 Distribution:

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