ML20213E672

Fowards Independent Evaluation of Plant Verification Program at WPPSS-2,Vol Ii,Design Reverification, Per DG Eisenhut 831031 Memo.W/O Encl

ML20213E672
Person / Time
Site:	Columbia
Issue date:	11/03/1983
From:	Rajender Auluck Office of Nuclear Reactor Regulation
To:	Mattson R, Taylor J, Vollmer R NRC
References
CON-WNP-0673, CON-WNP-673 831103, NUDOCS 8311160175
Download: ML20213E672 (2)

Text

.

,' \\..

• D

.,3, sc.sd62:$fj;i.ECM2%/8 5d--

g Novcaber 3,1983 DISTRIBUTION:

6

.iEMORANDUM FOR:

Distribution List (attached)

FROM:

R. Auluck, Project Manager Licensing Branch No. 2 Division of Licensing

SUBJECT:

WNP-2 DESIGN VERIFICATION PROGRAM r r-

~

Reference:

Memo to R. H. Vollmer.' R. J. Mattson, J. M. Taylor, and T. W. Bishop from D. G. Eisenhut, dated October 31, 1983 As indicated in the reference memorandum, attached is the final report from Technical Audit Associates on WNP-2 design verification program for your review.

If you need any additional information, please call me at x28547.

• et ~ 1 af m a t.y R. Auluck, Project Manager Licensing Branch No. 2 Division of Licensing

Attachment:

As stated l

l l

l l

l

- - ~.

f 8311160175 031103

/

('.,+:. AD_OCLO3000397 '

I y

s

,\\,.

'...'..h DC.:.LB # 2/.B C l

i ornce)

DL:LB

'j"

s Y

%ws)

....c. k. :. p.t..AS..c. h.w e n. c..e.r....

~

'~

..../.J.../. 8 3..

1

11..../. _'. /.8 3...........l................

earr)

Pe roau m no sei sacu e2 OFFICI AL RECORD COPY

• u s cac 2ns-co m

NEMO DATED: November 3.1983 DISTRIBUTION:

w/ attachment:

R. H. Vollmer R. J. Mattson J. M. Taylor.

T. W. Bishop e

W. Haass/J. Gilray R. Dodds W. Hodges/T. Collins E. Sullivan H. Brammer/R. Li R. Lobel/J. Ridgely J. Knight /S. Rhow G. Bagchi/R. Wright 4L. LaGrange/A. Masciantonio R. Ferguson/D. Kubicki D. Jeng/K. Leu w/o attachment:

T. Novak J. Martin A. Schwencer H. R. Denton R. Auluck D. G. Eisenhut 7

/

l 1

1 l

l l

l L

Washington Public Power Supply System

9 3000 George Washington Way P.O. Box 968 Richland, Washington 99352-0968 (509)372 5000

" r t'-

October 19, 1983

^

Docket No. 50-397 G02-83-941 Mr. J. B. Martin, Regional Administrator Region V U.S. Nuclear Regulatory Corrrnission 1450 Maria Lane Suite 210 Walnut Creek, CA 94596

Subject:

Technical Audit Associates, Inc., Evaluation of the WNP-2 Plant Verificaticn Programs

References:

1)

Letter No. G02-83-0850, dated 9/21/83, C. S. Carlisle to J. B. Martin, " Supply System WNP-2 16th Progress Report CFR 50.54(f)."

2)

Letter dated 10/22/82, G. O. Bouchey to H. R. Denton,

" Nuclear Project No. 2 - Verification of Design and Construction Adequacy."

The letter of Reference (1) transmitted the final WNP-2 Quality Verifi-cation Program summary report for your information and review. As you are aware, the Supply System has retained an independent outside organ-ization called Technical Audit Associates, Inc., (TAA) to evaluate the adequacy of the WNP-2 Plant Verification Programs (Reference 2) and to audit the implementation of both the Quality Verification Program (QVP) and the independent Design Reverification Program.

Enclosed are copies of Volume I and Volume III of the TAA final report.

Volume I reports TAA's conclusions regarding (1) the Plant Verification Program adequacy, (2) the implementation of the Quality Verification Program (QVP), and (3) current (i.e. post 1980) Quality Assurance Program adequacy. Volume III is simply a compilation of previous interim audit reports and the Supoly System responses to those TAA audits. All audit results have been previously provided directly to both Region V and NRR at the time of issuance as part of the ongoing NRC staff evaluation of the independent Design Reverification Program.

Volume II will report TAA conclusions regarding the WNP-2 Design Reverification Program. TAA has indicated they plan to ccmplete this 7

PDR ADOCK 0 PDR A

f

J. B. Martin, Regional Administrator Page 2 final volume in mid-October. TAA will provide copies of this volume directly to the NRC staff just as they have done with their interim audit reports.

r erogram Director, WNP-2 GDB:mjm Attachments cc:

T. Novak, w/o attachment H. Denton, w/o attachment F. Jewett, Jr., w/o attachment A. Schwencer R. Auluck A. Toth R. Dodds

1 TECHNICAL AUDIT ASSOCIATES, INC.

589 OENOKE RIDGE NEW CANAAN. CT C6840 rau.= s. stwcTT. sa.

enom eseosos October 4, 1983 Project 1126 Ref. 108-3486 Mr. D. W. Mazur u

.=ging Director s

Washington Puolic Power Supply System P. O. Box 968 3000 George Washington Way Richland, WA 99352

Subject:

Final Reoort, Contract C-0878 WNP-2 Quality verification

Dear Mr. Mazur:

Enclosed are copies of Volumes I and III of Technical Audit Associates, Inc. (TAA) final report under the subject contract.

Volume I, "An Independent Evaluation of the (Supply Systom's)

Quality Verification Program and Quality Control Effectiveness",

presents TAA's analyses and conclusions on the subject of quality verification.

Volume III, " Technical Audit Associates Reports of WNP-2 Audits", is a ecmpilation of the six audit reports presented during the course of our work.

This volume is referenced in Volume I and will be referenced in Volume II.

Volume II, "An Independent Evaluation of the (Supply System 4's)

Requirements and Design Reverification Program", will ccmplete TAA's final report en this assignment. That volume is in preparation.

Our target for completien is Cctcber 15, 1983.

Mr. G. D. Ecuchey has requested that we send copies of Volumes I and III to him for distribution to the NRC in accordance with its standing request.

Sincerely yours, l.

+

Fran B. Jewe t, J.

l FBJ:fj j

cc G. D.

Bouchey (with nine copies eacn) l C. S. Carlisle (with cne ccpy each)

R. S. Glassccck (with one ccpy each) l l

w

W November 3, 1983 MEMORANDUM FOR:

Carlton C. Kammerer, Director Office of Congressional Affairs FROM:

William J. Dircks Executive Director For Operations

SUBJECT:

SUPPLEMENTING THE RECORD OF THE OTTINGER HEARINGS ON FINANCING THE COMPLETION OF WPPSS POWER PLANTS During the hearings held on September 14, 1983 by the Subcommittee on Energy Conservation and Power of the House Comittee on Energy and Commerce to examine to proposed legislation to provide financing for the completion of WPPSS power plants, a question was directed to the NRC concerning whether NRC licensing of ownership must be obtained by any new entity created in order to provide the necessary financing.

Our supplement for the record is attached.

(Signed) T. A, Rchm I

hilliamJ.Dircks Executive Director for Operations

Attachment:

As stated DISTRIBUTION: (w/ attachment)

NRC Docket Chandler LPDR Paton POR Hassell FF (2)

A.Schwencer(144)

W.Dircks (chron)(6209)

R.Auluck (144)

T.Novak (110)

A.Vietti (128)

G.Cunningham L.Shollenberger (Rgn. V)

M.Murray J. Martin (Rgn. V)

ESchristenbt.ry/Scinto i

Rutberg(chron)

. /

N

)

\\

DFC

0 ELD

0 ELD

ELD

.- :NR q_(\\___:EDO jl 3

_____f _ ___:____________:___________

NAME :JRu

/kt,:EChristenbury GCunningham: TN vakt

WDircks DATE :Id /"f/83

/. /83

I /4 83

l' / ) /83

H /.S/83

/

N 831103 PDR ADOCK 05000397 A

PDR

m o

Insert for the record: page 68, line 1540 During hearings that were held on September 14, 1983 by the Subcomittee on Energy Conservation and Power of the House Comittee on Energy and Commerce to examine the subject of financing the completion of power plants owned by the Washington Public Power Supply System (WPPSS) and in particular proposed section 317 of H.R. 3363 a question was asked of the NRC representative to which we now submit a supplemental response.

Pursuant to the proposed legislation, one of the methods that would be available as a means for financing the completion WPPSS Units One, Two and Three would be the fonnation of a new entity, established by State law, that would provide funds for the continued construction of the project. Mr. Wyden, at page 67 of the transcript, requested information concerning what the impact would be on the licensing of WPPSS Unit Three, if the new entity were required to have an cwnershia

. interest in the facility.

The answer to the question posed depends on the nature of the activities of the new entity.

If the new entity is to be an owner, in whole or in part, of the facility, an amendment of the constructior.

permit or operating license would be required authorizing such ownership.

This involves, after appropriate notice, a determination that the new owner is qualified for the activity authorized; e.g. if it involves simple partial ownership with no control over operation of the facility, only financial qtalification need be assessed (there would be no question of alien ownership).

However, if the new entity were to be involved in the construction or operation of the facility, its technical l

J

qualifications would also be evaluated.

If the new entity were to own or control the current licensee then Commission approval under 10 C.F.R. 9 50.80 would be required.

On the other hand, if the new entity were to be a mortgage holder or other creditor only, general Commission approval has been granted by regulation,10 C.F.R. 9 50.81, and no license amendment would be required.

Until the exact form and functions of the new entity are decided, it is not possible to provide greater detail as to what may be required in order to transfer an ownership interest to this new entity.

4D 9

O

a.

,.[ h g -

HIT 257030 PAGE 67

.. w

$.EW method of payment they are using now isn't giving them the '

4@,.d 3 p4

-fw.M.}u-E 515 discipline to pay the government when they should be paid.

I U I 316 so that is a policy that they seem to be resisting any i. g,,

...gM=g#

s.

517 change to, and that goes back to 1981 when we first brought p

518 it to their attention.

2, 1.

519 nr. WYDEN.

Let me just ask--let the gentleman from TERC

• 520 comment, and I have one other quick question.

My chairman S

!521 says we are about out of time, but I have one other very gy IM'$.

152 2 quick and important question.

~pr-Fd.

4 1523 The gentleman from Trac.

1524 Mr. LAMME.

With regard to the priorities and discretion,

.- ma.

,3 7$

525 many of these policies uere carried forward, developed by J

1526 the Department of Interior when they had authority over

• ~.M 1527 power marketing agencies.

They had been carried. forward to

' 3 jet 1528 a large extent by the Department of Energy.

'529 Some things have been changed.

I don't recall that the

.-IWW 7g 1530 level of priority of pay =ent has been changed, and most of 1

w.y

~dd 1531 those priorities are found in a document referred to as RA-

• 'k?

d.

1532 6120-2 of the.Dopartment of Energy that sets out these types

~ {'2rd g,

gT 1533 of priorities as to uhan you are going to pay for what.

u-a

.gfjg 153!4 Mr. WYDEM.

Thank you.

f-Q-*i W M$5:

1535 one last question to the gentle =an from the NRC.

If the jp.

-2 1536 new entities, co-called neu entity under the approach being StQEB 1537 taken by Mr. McClure were required to have an ownership ws%'*jv..

J 1538 interest as a condition f or Wall street participation, how s$. E.1~"~q

..2 A-

-a-s s

fiWh.k.y h

f*

I

~

p r#cCd29C

@t-27aifNAA Qpg m v.s EMG.WYd MI hC o g1 d s

~t-

,1

\\

n~r a^l+v+ =%c

/

g[

s-w.r:-

F, e s 7**M idi~"S

/

/

r7 #, - L

==

• ~3k L

~e PAGE 68 MIF257030

• CME:

1539 uould this affect NRC's licensing of UppSS three?

$fsi 1540 Mr. MARTIM.

Mr. Wyden, I am going to have to get you an a.

r..

1541 ansuer for the record on that. a precise answer, but my t::

d@

some administrative changes to 1542 ir.pression is there would be 1543 the license, but that it would not involve anything very gr.

1544 major, but I just don't know precisely those legal details.

4 perhaps--I have a counsel here who could probably answer 15451 1546 that, Mr. Rutberg.

y(;

1547 Mr. OTTINGER.

Would you identify yourself?

EO WY' 1548 Mr. RUTBERG.

Joseph Rutherg.

"r 1549 Mr. OTTINGER.

How do you spell your last name?

1550 Mr. RUTBERG.

R~u-t-b-e-r-g.

'I reiterate uhat Mr. Martin

~

back and reflect on 1551 said.

I uould like an opportunity to go hb HE SE 1552 the question, but initially n'new ouner would have to be er

,V.

1553 considered by the NRC and licensed'as a new owner as any 1554 other owner would have to be.

1555 Mr. WYDEX.

So the whole process would really start over.

n:

l ER Th.

1556 Mr. RUTSERG.

When you say the whole process, I am not 1557

'sure.

4 1558 Mr. WYDEN.

You said permits?

You s aid new owner.

ua s

he i

1559 Mr. RUTBERG.

No, there would have to be an addition of 5E t

1560 that owner to the new license.

There would not have to be a v.

5"'

l 1551 new licanse, a new permit.

{4 1562 Mr. MYDEX.

We look forward to your answer on that as s-al:

g'. -

1 1563 uell.

]L

<++. p W

~.

"o f

f t _ _ _ _. _ _ _ _ _ _