ML23074A222
| ML23074A222 | |
| Person / Time | |
|---|---|
| Site: | 07007004 |
| Issue date: | 03/30/2023 |
| From: | Masters A NRC/RGN-II/DFFI |
| To: | Cutlip L American Centrifuge Operating |
| References | |
| EA 23-018 IR 2023401 | |
| Download: ML23074A222 (4) | |
Text
OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION March 30, 2023 EA-23-018 Larry Cutlip Senior Vice President American Centrifuge Operating, LLC 400 Centrifuge Way Oak Ridge, TN 37830
SUBJECT:
AMERICAN CENTRIFUGE OPERATING - OAK RIDGE - SPECIAL INSPECTION REPORT 07007004/2023401 AND APPARENT VIOLATIONS
Dear Larry Cutlip:
This letter refers to the U.S. Nuclear Regulatory Commission (NRC) inspection conducted on January 11 to 12 and January 31 to February 2, 2023, at the American Centrifuge Operating facility in Oak Ridge, Tennessee. The purpose of the inspection was to review potential failures to protect classified information. The enclosed report presents the results of this inspection. The inspectors discussed the preliminary inspection findings with your staff at the conclusion of the on-site portion of the inspection. A final exit briefing was conducted remotely with you and other members of your staff on March 30, 2023.
Based on the results of this inspection, apparent violations were identified and are being considered for escalated enforcement action in accordance with the NRC Enforcement Policy.
The current Enforcement Policy is included on the NRCs Web site at http://www.nrc.gov/about-nrc/regulatory/enforcement/enforce-pol.html. The apparent violations involved the licensees failure to meet NRC requirements. The AVs are discussed in more detail in the Enclosure (non-public).
Before the NRC makes its enforcement decision, we are providing you an opportunity to (1) respond to the apparent violations addressed in this inspection report within 30 days of the date of this letter, (2) request a Pre-decisional Enforcement Conference (PEC), or (3) request Alternative Dispute Resolution (ADR) mediation. If a PEC or ADR is held, the NRC will issue a public meeting notice to announce the time and date of the conference or mediation; however, the PEC or ADR will be closed to public observation since Security-Related Information will be discussed. If you decide to participate in a PEC or pursue ADR, please contact Robert E.
Williams at 404-997-4664 within 10 days of the date of this letter. A PEC should be held within 30 days and an ADR session within 45 days of the date of this letter.
Enclosure(s) transmitted herewith contain(s) SUNSI. When separated from enclosure(s), this transmittal document is decontrolled.
OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION
OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION L. Cutlip 2 If you choose to provide a written response, it should be clearly marked as a Response to Apparent Violations in NRC Inspection Report 07007004/2023401; EA-23-018 and should include for each apparent violation: (1) the reason for the apparent violation or, if contested, the basis for disputing the apparent violation; (2) the corrective steps that have been taken and the results achieved; (3) the corrective steps that will be taken; and (4) the date when full compliance will be achieved. Your response may reference or include previously docketed correspondence, if the correspondence adequately addresses the required response.
Additionally, your response should be sent to the NRCs Document Control Center, with a copy mailed to Anthony D. Masters, Region II, 245 Peachtree Center Avenue N.E., Suite 1200 Atlanta, GA 30303, within 30 days of the date of this letter. If an adequate response is not received within the time specified or an extension of time has not been granted by the NRC, the NRC will proceed with its enforcement decision or schedule a PEC.
If you choose to request a PEC, the conference will afford you the opportunity to provide your perspective on these matters and any other information that you believe the NRC should take into consideration before making an enforcement decision. The decision to hold a PEC does not mean that the NRC has determined that a violation has occurred or that enforcement action will be taken. This conference would be conducted to obtain information to assist the NRC in making an enforcement decision. The topics discussed during the conference may include information to determine whether a violation occurred, information to determine the significance of a violation, information related to the identification of a violation, and information related to any corrective actions taken or planned. In presenting your corrective action, you should be aware that the promptness and comprehensiveness of your actions will be considered in assessing any civil penalty for the apparent violations. The guidance in the enclosed excerpt from NRC Information Notice 96-28, Suggested Guidance Relating to Development and Implementation of Corrective Action, may be helpful.
In lieu of a PEC, you may request an ADR with the NRC in an attempt to resolve this issue.
ADR is a general term encompassing various techniques for resolving conflicts using a third-party neutral mediator. The technique that the NRC has decided to employ is mediation.
Mediation is a voluntary, informal process in which a trained neutral individual (the mediator) works with parties to help them reach resolution. If the parties agree to use ADR, they select a mutually agreeable neutral mediator who has no stake in the outcome and no power to make decisions. Mediation gives parties an opportunity to discuss issues, clear up misunderstandings, be creative, find areas of agreement, and reach a final resolution of the issues. Additional information concerning the NRC's program can be obtained at https://www.nrc.gov/about-nrc/regulatory/enforcement/adr.html. Typically, the Institute on Conflict Resolution (ICR) at Cornell University facilitates the NRC's program as a neutral third party. However, because Security-Related Information would be discussed during the mediation session, the Department of Energy (DOE) has agreed to provide a mediator (with the appropriate clearance level) to facilitate the mediation session. If you elect to participate in ADR, the mediation session would be held in Rockville, Maryland. Please contact Nicole G. Coleman at 301-287-9007 within 10 days of the date of this letter if you are interested in pursuing resolution of this issue through ADR.
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. You will be advised by separate correspondence of the results of our deliberations on this matter.
OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION
OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION L. Cutlip 3 This letter will be made available for public inspection and copying at http://www.nrc.gov/reading-rm/adams.html and at the NRC Public Document Room in accordance with 10 CFR 2.390, Public Inspections, Exemptions, Requests for Withholding.
The enclosed report contains Security-Related Information, so the enclosed report will not be made publicly available in accordance with 10 CFR 2.390(d)(1). If you choose to provide a response that contains Security-Related Information, please mark your entire response Security-Related Information-Withhold from public disclosure under 10 CFR 2.390 in accordance with 10 CFR 2.390(d)(1) and follow the instructions for withholding in 10 CFR 2.390(b)(1). The NRC is waiving the affidavit requirements for your response in accordance with 10 CFR 2.390(b)(1)(ii).
If you have any questions concerning this matter, please contact Robert E. Williams of my staff at 404-997-4664.
Sincerely, Anthony D. Digitally signed by Anthony D. Masters Masters Date: 2023.03.30 20:18:26
-04'00' Anthony D. Masters, Director Division of Fuel Facility Inspection Docket No. 07007004 License No. SNM-2011
Enclosure:
NRC Inspection Report 07007004/2023401 cc w/o encl: Distribution via LISTSERV OFFICIAL USE ONLY - SECURITY-RELATED INFORMATION