ML20236L153

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Forwards Insp Rept 99901329/98-01 & 99901334/98-01 on 980520-22 & Notices of Violations & Nonconformances
ML20236L153
Person / Time
Issue date: 07/08/1998
From: Black S
NRC (Affiliation Not Assigned)
To: Cepkauskas M, Zarges T
MORRISON-KNUDSEN CO., INC.
Shared Package
ML20236L157 List:
References
REF-QA-99901329, REF-QA-99901334 99901329-98-01, 99901329-98-1, 99901334-98-01, 99901334-98-1, NUDOCS 9807100247
Download: ML20236L153 (2)


Text

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          • July 8, 1998 Mr. Thomas H. Zarges President and CEO Engineering and Construction Group Morrison Knudsen Corporation (Docket 99901329) 1500 West 3rd Street Cleveland, Ohio 44113-1406 I Mr. Martin D. Cepkauskas, President The Steam Generating Team (Docket 99901334) 1500 West 3rd Street Cleveland, Ohio 44113-1406

SUBJECT:

NRC INSPECTION REPORT 99901329/98-01 AND 99901334/98-01 (NOTICE OF I VIOLATION AND NOTICE OF NONCONFORMANCE)

Dear Gentlemen:

On May 20-22,1998, the U.S. Nuclear Regulatory Commission (NRC) completed an inspection at your facility, Morrison Knudseu Corporation, Engineering and Construction Group, Power Division (MK) and the Steam Generating Team (SGT), Cleveland, Ohio. The enclosed report presents the results of that inspection. )

i The NRC inspectors reviewed the implementation of selected portions of the MK and the SGT, quality assurance program, and reviewed activities associated with its welding, maintenance, and steam generator replacement services to the nuclear industry. During this inspection, the

' NRC Inspectors reviewed MK/SGT correspondence of its steam goaerator replacement activities at Point Beach and St. Lucie Nuclear Power Station concerning MK/SGT's control of weld procedure specifications and procedure qualification records. The NRC inspectors were concerned about the capability of the MK/SGT quality assurance program used to evaluate the

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American Society Mechanical Engineers (ASME) Boiler and Pressure Vessel Code (Code) weld '/

l procedures after it had completed its review as discussed in the enclosed inspection report, it _

was found that certain of your activities appeared to be in violation of NRC requirements.

i Specifically, a review of two 10 CFR Part 21 evaluations and several potential Part 21 issues '

~f identified that both 10 CFR Part 21 evaluations were not conducted in accordance with 621.21 of Part 21, and one potential Part 21 review by SGT/MK staff was found to have been stopped before the generic Part 21 implications were assessed by the SGT/MK staff. The inspectors determined that the two Part 21 evaluations should have been transmitted to applicable licensees within five days of discovery in accordance with @21.21(b) because the MK/SGT staff did not have the capability to determine whether a substantial safety hazard, is defined in

@21.3 of Part 21, existed. The NRC inspectors also determined that MK/SGT had not adopted adequate procedures to effectively implement the provisions of 10 CFR Part 21. This matter is cited in the enclosed Notice of Violation (NOV), and the circumstances surrounding the NOV are described in detailin the enclosed report. Please note that you are required to respond to this letter and should follow the instructions specified in the enclosed NOV when preparing your response. The NRC will use your response, in part, to determine whether further enforcement action 1 n n n r isr- necessary, to ensure compliance Wauup with regulatory ^ Lb e tLreq y- &nihiint* T r; Ll@

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iluly 8,1998 In addition, the NRC inspectors found that the implementation of your quality assurance program failed to meet certain NRC requirements imposed on you by your customers.

I Specifically, the inspectors determined that compliance with 10 CFR Part 50, Appendix B,

" Quality Assurance Criteria for Nuclear Power Plants and Fuei Reprocessing Plants," and the American Society Mechanical Engineers (ASME) Boiler and Pressure Vessel Code (Code) that

- was contractually imposed on MK/SGT by its nuclear utility customers was not met in certain areas. These nonconformances are cited in tne enclosed Nctice of Nonconformance (NON),

and the circumstances surrounding them are described in detailin the enclosed report. You are requested to respond to the nonconformances and should follow the instructions specified in the enclosed NON when preparing your response, in accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter and its enclosures will be placed in the NRC's Public Document Room (PDR).

Sincerely, Original signed by: Suzanne C. B1ack Suzanne C. Black, Chief Quality Assurance, Vendor inspection and Maintenance Branch Division of Reactor Controls and Human Fctors Office of Nuclear Reactor Regulation Dock 0t No. 99901329 & 99901334

Enclosures:

1. Notice of Violation
2. Notice of Nonconformance
3. !nspection Report 99901329/98-01 & 99901334/98-01 cc: Mr. Richard W. Bonsall Executive Vice President Energy & Environmental Group Duke Engineering & Services Post Office Box 1004 Charlotte, North Carolina 28201-1004 DISTRIBUTION:

HOMB R/F DNaujock EJSullivan IJLee Docket Files 99901329 & 99901334 Central Files / RIDS IE:09 PUBLIC Whitebook BRogers (Signed copy)

JJPetrosino (Signed Copy) Doc Mas K @l e c-tvon i c. Cofy )

DOCUMENT NAME: G:\ PETRO \lNSPRPT.MK1 To rictivs a copy of this documM indicate in the box: "C" = Copy without enclosures "E" = Copy with enclosures "N" = No copy OFFICE HOMB/DR($ /l E DRS/ REG-ill E DRS/ REG-Il . E HOMB/DRCM E HQMB/DRCH J NAME JJPetro6ind / KGreenBates W JBBlake  % RAGramm (G SCBlack 4 06Mf/98' DATE i

06/46798 M7 06/A9/98 WV 0$/ q /98 017/ T/98" OFFICIAL RECORD COPY l

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