ML20207E542

Discusses Apparent Violation Involving Usec & Lockheed Martin Utility Svcs,Inc.(Lmus) Mgt Discriminating Against Lmus Employee at Paducah Gaseous Diffusion Plant. Violation Being Considered for Escalated Ea.W/O Encl 2

ML20207E542
Person / Time
Site:	Portsmouth Gaseous Diffusion Plant, 070*****
Issue date:	05/18/1999
From:	Pederson C NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:	Adkins J UNITED STATES ENRICHMENT CORP. (USEC)
References
3-1998-033, 3-1998-33, EA-99-110, NUDOCS 9906070072
Download: ML20207E542 (5)

Text

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+g %g* - UNITED STATE 3 NUCLEAR RE2ULATORY COMMISSION REGION 111

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• 801 WARRENVILLE ROAD h, USLE. ILLINotS 80632-4361

.m. May 18, 1999

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EA 99-110' Mr. J. N. Adkins Vice President - Production United States Enrichment Corporation Two Democracy Center 6903 Rockledge Drive Bethesda, MD 20817

SUBJECT:

PREDECISIONAL ENFORCEMENT CONFERENCE

. (NRC OFFICE OF INVESTIGATIONS CASE NO. 3-1998-033)

DearMr. Adkins:

This is in reference to an apparent violation of a U.S. Nuclear Regulatory Commission (NRC) requirement prohibiting discrimination against employees who engage in protected activities (i.e.,10 CFR 76.7, " Employee Protection"). The apparent violation involved the United States Enrichment Corporation (USEC) and Lockheed-Martin Utility Services, Inc. (LMUS) management discriminating against a LMUS employee at the Paducah Gaseous Diffusion -

Plant, Paducah, Kentucky. Although both USEC and LMUS (USEC's contractor) management appeared to have been involved in the apparent violation, the NRC holds USEC responsible for ensuring compliance with NRC requirements by contract personnel. The NRC is also aware that beginning May 18,.1999, USEC's contract with LMUS for operation of the Paducah Plant will end and all current LMUS staff will become USEC employees. Furthermore, it appears that, in this case, a USEC employee may have been responsible for initiating the alleged discriminatory employment action. The NRC Senior Resident inspector discussed this apparent violation with Howard Pulley, Piant Manager, and Larry Jackson, Regulatory Affairs Manager, on April 30,1999.

On August 10,1998, USEC and LMUS management transferred the LMUS Manager of Quality Systems to a non-managerial position in the Training Department. The Qus.Uty Systems Manager believed that the transfer was retaliatory in nature and was due to: (1) safety-related

. findings he had raised to management; (2) safety-related findings raised by employees working for him; and (3) his personal contacts with the NRC about safety-related issues at the Paducah facility. Separately, the USEC and the NRC Office of Investigations (01) investigated this 1 matter. The USEC investigation concluded that the transfer of the Manager of Quality Systems i was not retaliatory in nature and was due to his failure to perform tasks assigned to his group J and his poor interpersonal communication skills.' However, the 01 investigation recognized the

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' A copy of the USEC investigation report was provided to Of on March 4,1999.

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9906070072 990518 PDR ADOCK 07007002 C PDR I

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J. Adkins findings of the USEC investigation, but concluded that the transfer to the Training Department was due, in part, to his involvement in safety-related activities. The synopsis and a summary of the Ol report are enclosed.

The NRC staff's review of the 01 findings indicated that the action taken against this individual is an apparent violation of 10 CFR 76.7. Therefore, this apparent violation is being considered for escalated enforcement action in accordance with the " General Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement Policy), NUREG-1600, Revit, ion 1.

The NRC is not issuing a Notice of Violation at this time; USEC will be advised by separate correspondence of the results of our deliberations on this matter. Also, please be aware that the characterization of the apparent violation described in this letter may chan0e as a result of further NRC review.

As requested by Mr. Larry Jackson, Paducah Regulatory Affairs Manager, on May 3,1999, we will contact your staff within five days of the date of this letter to schedule a transcribed predecisional enforcement conference with USEC to discuss this apparent violation. The conference will be held at the NRC Region 111 Office in Lisle, Illinois. Since the performance of certain USEC and LMUS employees will be discussed during the conference, the conference will be closed to public observation. Hcwever, the former Manager of Quality Systems will be invited to attend. Also, USEC is requested to bring a certain employee to the enforcement conference.

The decision to hold an enforcement conference does not mean that the NRC has made a final determination on en'orcement action in this case. In addition, the conference is an opportunity for USEC to provide the NRC with perspectives on: (1) the severity level of the apparent violation; (2) the application of the factors that the NRC considers when it determines the amount of a civil penalty that may be assessed in accordance with Section VI.B.2 of the Enforcement Policy; and (3) any other application of the Enforcement Policy to this case, including the exercise of discretion in accordance with Section Vll. Such a violation, if it occurred, could have a chilling effect on other employees in that it might deter them from identifying any nuclear safety related concems they may have. Therefore, we request that at the conference, you address the actions taken or planned to correct any perceived chilling effect upon other employees.

In accordance with 10 CFR 2.700 of the NRC's " Rules of Practice," a copy of this letter without Enclosure 2 will be placed in the NRC Public Document Room (PDR). The NRC will delay

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J. Adkins. .

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' deciding whether to place a copy of Enclosure 2 in the PDR until a final enforcement decision has been made.

Sincerely,

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kWAm*# i-- j

-C . Pederson, Director i vis n of Nuclear Materials Safety Docket No.70-001 Certificate No. GDP-1

Enclosures:

1.' 01 Report Synopsis

2. Summary of 01 Report cc w/encis: H. Pulley, Paducah General Manager

. L L. Jackson, Paducah Regulatory Affairs Manager J. M. Brown, Portsmouth General Manager S. A. Toelle, Manager, Nuclear Regulatory Assurance and Policy, USEC Paducah Resident inspector Offme  !

Portsmouth Resident inspector Ofra i R. M. DeVault, Regulatory Oversight Manager, DOE J. C. Hodges, Paducah Site Manager, DOE l

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J. Adkins - -4. .

ENCLOSURE 2 IS NOT FOR PUBLIC RELEASE WITHOUT THE APPROVAL OF THE DIRECTOR. NRC OFFICE OF ENFORCEMENT Distribution with Enclosures 1 and 2:

Office of Enforcement V. Beaston, OE D. Dambly, OGC S. Chidakel, OGC R. Pierson, NMSS P. Ting, NMSS J. L Caldwell, Rill s.

Distribution with Enclosure 1 ONLY Public IE-07 Docket File W. Troskoski, NMSS ,

C. Cox, NMSS W. Schwink, NMSS {

P. Harich, NMSS M. L. Horn, NMSS R. Bellamy, RI EJM, Ril (e-mail)

D. B. Spitzberg, RIV IEO (e-mail)

DOCDESK (e-mail)

Greens OAC:Riti i

v'7 0 0 '!4 ENCLOSURE 2 IS NOT FOR PUBLIC RELEASE WITHOUT THE APPROVAL OF THE l DIRECTOR. NRC OFFICE OF ENFORCEMENT j

ENCLOSURE 1  !

SYNOPSIS This investigation was initiated on August 13,1998, by the U.S. Nuclear Regulatory Commission, Office of Investigations, Region 111, to determine whether the former Quality Systems Manager at the Paducah Gaseous Diffusion Plant had been discriminated against for raising safety concems.

Based on the evidence developed during the investigation, it is concluded that sufficient evidence exists to substantiate the alleged employment discrimination, that in part, the action taken against the former Quality Systems Manager was a result of engaging in protected activity.

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Case No. 3-1998-033

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