ML20211H315
| ML20211H315 | |
| Person / Time | |
|---|---|
| Site: | Paducah Gaseous Diffusion Plant |
| Issue date: | 09/22/1997 |
| From: | Beach A NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III) |
| To: | John Miller UNITED STATES ENRICHMENT CORP. (USEC) |
| Shared Package | |
| ML20211H320 | List: |
| References | |
| 70-7001-97-05, 70-7001-97-5, EA-97-267, NUDOCS 9710060321 | |
| Download: ML20211H315 (4) | |
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UNITEDSTATAS -
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k NUCLEAR RE2ULATORY COMMISSION
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-l September 22,:1997 EA 97-267l a
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. U.S. Enrichinent Corporation
- " ? ATTN: MriJ. H. Miller -
g d-EVice President, Production
- Two Democracy Center l'
6903 Rockledge Drive -
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Bethesda, MD 20817 -
SUBJECT:
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(NRC Inspection Repo.rt No!.7G.700U97005(DFS))
3Desir Mr. Miller:
. This refem to the security inspection conducted on May 5 9,1997, at the Paducah Gaseous '
Diffusion Plant in Paduca_h, Kentucky. The purpose of the inspection was to review the
-implementation of the approved Security Plan for the Protection of Classified Matter (Security Plan).' A telephonic briefing was held on June 9,1997, at which the results nf the inspection L
- were discussed. The inspection report detailing our findings was issued on June 24,1997. A.
predecisional enforcement conference was held with you and members of your staff or July 16, j-.
1997, to discuss the apparent violations, their root causes, and your corrective action.
Based on the infomiation' developed during the inspection, the information that you provided during the conference, and the information that you provided in your July 18 and August 11, 1997 letters, the NRC has determined that violations of NRC_ requirements occurred.-These violations are cited in the enclosed _ Notice of Violation (Notice) and the circumstances surrounding them are described in detail in the subject inspection report. Specifically, these 2
violations involved USEC's failure to: (1) provide the Commission complete and accurate Linformation, and_(2) implement various aspects of the Security Plan of the Paducah Gaseous
. Diffusion Plant.
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f The NRC is concerned with USEC's failure to provide complete and accurate information because the NRC telles on information received from certificate holders to make regulatory 4
decisions involving the public health and safety, in addition, the NRC h concemed about the i significant number of instances where USEC failed to implement its Security Plan. The NRC O
{ recognizes that the actual security consequences were minimalin this case. However, the i violations described in the enclosed Notice are of significant regulatory concem because, g) f
- collectively, they are indicative of a programmatic breakdown of the USEC Security Program.
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'9710060321-970922 PDR ADOCK 07007001 j
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Mr. J. H. Miller 2-This programmatic breakdown is evidenced by: (1) the fact that plant personnel were not familiar with commitments contained in the Security Pirari; (2) the fact that USEC did not implement a slynificant number of specific Security Plan requirements involving a broad range of issues; and (3) the fact that USEC did not provide complete and accurate information to the Commission regardhg c3rtain aspects of its Security Plan. During the July 16,1997 conference, you stated that the root cause of these violations was a lack of effective management oversight and a lack of self assessments. Therefore, these violations have been characterized in the aggregate in accordance with the *Generel Statement of Policy and Procedure for NRC Enforcement Actions"(Enforcement Policy), NUREG 1600, as a Severity Levelill problem.
In accordance with the Enforesment Policy, a base civil penalty in the amount of $55,000 is considered for a Severity Level lll probbm. Because your facility has not been the subject of escalated enforcement actions since its certification, the NRC considered whether credit was warranted for Correct /ve Action in accordance with the civil penalty assessment process in Section VI.B.2 of the Enforcement Policy. In this case, the NRC has determined that credit is warranted for your prompt and comprehensive corrective action. Specifical!y, your corrective action which you discussed during the July 16,1997, conference included: (1) reinforcing managerner t's expectations for total procedural adherence, rigorous attention to detall, and complete regulatory compliance; (2) assembling a team of subject matter experts to concurrer.tly review the three security plans (l.e., classified matter, physical, and transportation) for accuracy, consistency, and completeness; (3) taking immediate actions to bring the plant into compliance with the Security Plan; (4) proceduralizing the process ut!!ized during review to ensure consistent plan review and change implementation; (5) requiring increased field monitoring by security management to ensure regulatory commitments are met via strict procedural adherence; and (6) performing independent assessments and self assessments of the Security Plan implementation using NRC inspection criteria as a guide.
Therefore, to encourage prompt and comprehensive correction of violations, and in recognition of the absence of previous escalated enforcement action, I have been authorized, after consultation with the Director, Office of Enforcement, not to propose a civil penalty in this case.
However, significant violations in the future could result in a civil penalty. In addition, issuance of this Severity Level lli violation constitutes escalated enforcement action that may subject you to increased inspection effort.
During the July 16,1997 conference, you took exception with some of the apparent violations described in the June 24,1997 inspection report. Specifically, you stated that: (1) USEC properly marked SECRET Restricted Data (SRD) combination records at the highest classification level (Apparent Violat'on 70 7001/97005 02); (2) USEC provided adequate training to a Computer System Sw:urity Officer (CSSO) (Apparent Vk 'ation 70-7001/97005-05b); and (3) USEC properly marked a classified magnetic storage dNice
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' Mr,' J. H. Miller 3
t-j (Apparent Violation 70-7001/97005-050 After careful consideration of your statements and documentation, the NRC has determined that your marking practices did not violate NRC i
requirements and has, therefore, whndrawn violations 70 7001/97005-02 and 70 7001/97005-05c. However, the NRC maintains that training of a CSSO was not adequate because the CSSO interviewed did not know how to property dirpose of a Demouill disk (i.e., removabki magnetic data storage) containing classified infort.ation, a basic fundamental of CSSO training, While reviewing the facts outlinNI in NPC Intpection Repod 70 7001/97005(DFS), dated g
June 24,1997, we noted an enor m the first caragraph o'Section G.b, in that references to separation distances of clai,sified computer equipment from unclassified data communication 5
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lines should have been 1 foot, not 3 feet.
You are required to respond to this letter and shouH follow ins instructions specified in the s
- enclosed Notice when preparins, your response. The NRC will use your response, in part, to determine whether further enforcement action is necessary ic 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 y
enclosure, and your response wili ce placed in the NRC Public Document Room.
Sincerely, b,
&.. Q A.
ill Beach V
R glonal Ad ninistrator Certificate No. GDP 1 Docket No. 70 7001' 1
Enclosure:
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- - 4 Distribution:
Docket File 70 7001
'PDR SECY CA LJCallan, EDO AThadani, DEDO ABeach, Alli JLloberman, OE Case file CPaperiello, NMSS ETenEyck, NMSS EWBrach, NMSS
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NMamish, NMSS
= JGoldberg, OGC D
RCanlano, Rlli PHiland, Rill Paducah Resident Office Portsmouth Resident Office BClayton, Rlli RBrady, ADM ASilvious, ADM JEverly, ADM JDelMedico, OE i
NMSS R/F FCOB R/F FCSS R/F Enforcement Coordinators i
Rl,- Ril, RIV
- GCaputo, Ol' HBell. 010 JGilland, OPA -
TMartin, AEOD OE:EA RAO:Rlll SLO:Rlli PAO: Rill '
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