ML20211C714

Forwards Insp Rept 70-7001/97-07 on 970715-0912 & Nov.Insp Also Discovered Apparent Violation Being Considered for Escalated Enforcement Action.Predecisional EC to Discuss Apparent Violation Will Be Held on 971009

ML20211C714
Person / Time
Site:	07007001
Issue date:	09/24/1997
From:	Caniano R NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:	John Miller UNITED STATES ENRICHMENT CORP. (USEC)
Shared Package
ML20211C717	List: ML20211C714 ML20211C728 ML20211C734
References
70-7001-97-07, 70-7001-97-7, EA-97-431, NUDOCS 9709260282
Download: ML20211C714 (3)

Text

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1 September 24, 1997 1

EA 97 431 Mr. J. H. Miller Vice President Production United States Enrichment Corporation I Two Democracy Center 4- 6903 Rockledge Drive Bethesda, MD 20817

SUBJECT:

NRC INSPECTION REPORT 70-7001/97007(DNMS), APPARENT VIOLATION AND NOTICE OF VIOLATION .

L

Dear Mr. Miller:

On August 25,1997, the NRC completed an environmental program and a routine resident inspection at your Paducah Gaseous Diffusion Plant. Exit meetings were conducted with i Mr. Steve Polston, Paducah General Manager, and others on August 11 and 25, and September 12,1997. The latter exit meeting was held to inform your staff the NRC staff's revised characterization of the issues discussed in Section S1.1 as an apparent p violation. The enclosed report presents the results of the inspections. During the six-week period covered by the inspection report, the conduct of activities at the Paducah Gaseous

- Diffusion Plant were generally adequate, i

During this inspection an apparent violation was identified and is being considered for escalated enforcement action in accordance with the " Gene.al Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement Policy), NUREG-1600. The apparent violation involves your discovery of uncontrolled classified matter in areas outside the Paducah Plant Control Access Area. Accordingly, no Notice of Violation is presently being issued for_these inspection findings. Please be advised that the number and characterization of apparent violations described in the enclosed inspection report may change as a result of further NRC review.

A closed predecisional enforcement conference to discuss this apparent violation has been schedule for 2:00 p.m., on October 9,1997, in the NRC Region til Offices in Lisle, Illinois.

The decision to hold a predecisional enforcement conference does not me. n :%t the NRC has determined that a violation has occurred or that enforcement action will be taken. The conference is being held to obtain information to enable the NRC to make an enforcement

- decision, such as a common understanding of the facts, root causes, missed opportunities to identify.the apparent violation sooner, corrective actions, significance of the issues and the need for lasting and effective corrective action. In particular, we expect you to

. - address any other recent examples involving the loss of control of classified materials,

- either within or outside the controlled access area, and the status of your " purge" campaign. In addition, this is an opportunity for you to point out any errors in our inspection report and for you to provide any information concerning your perspectives on:

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.i J. Miller 1) the severity of the 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.

You will be advised by separate correspondence of the results of our deliberations on this matter. No response regarding the apparent violation is required at this time.

In addition to the above, the NRC has determined that five violations of NRC requirements occurred. The violations are cited in the enclosed Notice of Violation (Notice) and the circumstances surrounding them are described in detailin the enclosed report. These violations are of concern because collectively they indicate deficiencies in your staff's development and use of procedures for the control of some activities affecting safety, in addition, three of the five violations are similar to issues raised in previous NRC Inspection Reports. (See Inspection Rcports 70-7001/97002,97003, and 97004.)

You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response. The NRC will use your re;ponse, in part, to determine whether further enforcement action is necessary to ensure compliance with regulatory requirements.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice" a copy of this letter, its enclosures, and your response will be placed in the NRC Public Document Room (PDR).

We will gladly discuss any questions you have concerning these observations.

Sincerely, Original Signed by Roy J. Caniano, Acting Director Division of Nuclear Materials Safety Docket No. 70 7001

Enclosures:

1. Notice of Violation

2. Inspection Report No. 70-7001/97007(DNMS)

3. Enforcement Policy: Section V, "Predecisional Enforcement Conferences" See Attached Distribution E,0CUMENT NAME: R :\l N S PR PT S\G D P\PA D\PA D 97007. D N M To receive e copy of tNs document, indicate in the bou "C" = Copy without attach /enci *E' = Copy with attach /enct *N* = No copy OFFICE Rlli N Rlll 6 Rlli 6 Rlli ,,

NAME Reidingerkh Hiland 9ed Clayton kd Caniano h DATE 096y97 09 4/97 09/f/97 095[/97 h OFFICIAL RECORD COPY

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J. Miller Distribution cc w/encts: S. A. Polston, Paducah General Manager W. E. Sykes, Paducah Regulatory Affairs Manager D. l. Allen, Portsmouth General Manager Paducah Resident inspector Office Portsmouth Resident inspector Office J. C. Hodges, Paducah Site Manager, DOE bec w/encis: J. Lieberman, OE J. Goldberg, _OGC R. Pierson, NMSS P. Ting, NMSS W. Schwink, NMSS L. Silvious, NMSS M. L. Horn, Project Manager, NMSS P. Harich, NMSS J. Caldwell, Rill T. Simmons, Rlli R. Bellamy, RI E. McAlpine, Ril F. Wenslawski, RIV/WCFO PUBLIC (IE 07)