Information Notice 1991-09, Counterfeiting of Crane Valves: Difference between revisions

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| issue date = 09/25/2007
| issue date = 09/25/2007
| title = Counterfeiting of Crane Valves
| title = Counterfeiting of Crane Valves
| author name = Case M J
| author name = Case M
| author affiliation = NRC/NRR/ADRA/DPR
| author affiliation = NRC/NRR/ADRA/DPR
| addressee name =  
| addressee name =  
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| document type = NRC Information Notice
| document type = NRC Information Notice
| page count = 5
| page count = 5
| revision = 0
}}
}}
{{#Wiki_filter:UNITED STATES NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR REACTOR REGULATION WASHINGTON, September 25, 2007
{{#Wiki_filter:UNITED STATES


NRC INFORMATION NOTICE 1991-09, REV. 1: COUNTERFEITING OF CRANE VALVES  
NUCLEAR REGULATORY COMMISSION
 
OFFICE OF NUCLEAR REACTOR REGULATION
 
WASHINGTON, D.C. 20555 September 25, 2007 NRC INFORMATION NOTICE 1991-09, REV. 1: COUNTERFEITING OF CRANE VALVES


==ADDRESSEES==
==ADDRESSEES==
All holders of operating licenses or construction permits for nuclear power reactor
All holders of operating licenses or construction permits for nuclear power reactors.


==PURPOSE==
==PURPOSE==
The U.S. Nuclear Regulatory Commission (NRC) is re-issuing this information notice (IN) to correct IN 1991-09, "Counterfeiting of Crane Valves," which was issued on February 5, 1991, to alert licensees to potential problems with counterfeit valve This revision supersedes the original IN in its entiret It is expected that recipients will review this information for applicability to their facilities and consider action, as appropriate, to avoid similar problem However, suggestions contained in this IN do not constitute NRC requirements; therefore, no specific action or written response is require
The U.S. Nuclear Regulatory Commission (NRC) is re-issuing this information notice (IN) to
 
correct IN 1991-09, Counterfeiting of Crane Valves, which was issued on February 5, 1991, to
 
alert licensees to potential problems with counterfeit valves. This revision supersedes the
 
original IN in its entirety. It is expected that recipients will review this information for applicability
 
to their facilities and consider action, as appropriate, to avoid similar problems. However, suggestions contained in this IN do not constitute NRC requirements; therefore, no specific
 
action or written response is required.


==DESCRIPTION OF CIRCUMSTANCES==
==DESCRIPTION OF CIRCUMSTANCES==
As a result of information obtained from officials of the U.S. Customs office, and as documented in the Settlement Agreements resulting from a civil suit brought by the Crane Company and settled out of court in October 1987, it was determined that counterfeit Crane Company (Crane)
As a result of information obtained from officials of the U.S. Customs office, and as documented
valves were sold to an Atlantic Richfield Company (ARCO) chemical plant near Houston, Texa The NRC was informed that ARCO ordered eight 4-inch, 1500-psi, pressure-sealed Crane valves from the Baytown Supply Co. (Baytown). Baytown ordered the valves from International Valve Service, Inc. (International), and International ordered the valves from Southern California Valve Maintenance Company (SCV).
 
in the Settlement Agreements resulting from a civil suit brought by the Crane Company and
 
settled out of court in October 1987, it was determined that counterfeit Crane Company (Crane)
valves were sold to an Atlantic Richfield Company (ARCO) chemical plant near Houston, Texas.
 
The NRC was informed that ARCO ordered eight 4-inch, 1500-psi, pressure-sealed Crane
 
valves from the Baytown Supply Co. (Baytown). Baytown ordered the valves from International
 
Valve Service, Inc. (International), and International ordered the valves from Southern California
 
Valve Maintenance Company (SCV).
 
SCV had the valves manufactured in Taiwan. Upon arrival in the United States, the valves bore
 
the mark SCV. The valves were sent to the Amesse Welding Service (Amesse) where the
 
name Crane was apparently welded to each valve body.
 
The valves failed pressure testing performed by ARCO before installation. During the testing, ARCO found newspapers printed with Chinese characters in the valves. An expert on Crane
 
valves examined the valves and identified them as counterfeit. Six of the valves were repaired
 
and used by ARCO. The remaining two valves that could not be repaired were returned to SCV.
 
ML072500391
 
IN 1991-09, Rev. 1 The NRC verified that the following nuclear power plants did not have SCV, Baytown, or
 
International on their approved vendor lists: Comanche Peak, River Bend, South Texas Project, Waterford, Palo Verde, and Diablo Canyon. These power plants were selected because they
 
were located close to one of the three companies listed above and may have done business with
 
them. Southern California Edison did have a contract with SCV to maintain and repair valves at
 
the San Onofre Nuclear Generating Station, but has concluded that its established internal work
 
assignment and control procedures provided adequate assurance of the work performed by


SCV had the valves manufactured in Taiwan. Upon arrival in the United States, the valves bore the mark "SCV". The valves were sent to the Amesse Welding Service (Amesse) where the name "Crane" was apparently welded to each valve bod The valves failed pressure testing performed by ARCO before installatio During the testing, ARCO found newspapers printed with Chinese characters in the valve An expert on Crane valves examined the valves and identified them as counterfei Six of the valves were repaired and used by ARC The remaining two valves that could not be repaired were returned to SC ML072500391 IN 1991-09, Rev. 1 The NRC verified that the following nuclear power plants did not have SCV, Baytown, or International on their approved vendor lists: Comanche Peak, River Bend, South Texas Project, Waterford, Palo Verde, and Diablo Canyo These power plants were selected because they were located close to one of the three companies listed above and may have done business with the Southern California Edison did have a contract with SCV to maintain and repair valves at the San Onofre Nuclear Generating Station, but has concluded that its established internal work assignment and control procedures provided adequate assurance of the work performed by SC The NRC does not have any direct evidence that SCV, Baytown, or International provided counterfeit valves to the U.S. nuclear power industry or violated any NRC regulation
SCV. The NRC does not have any direct evidence that SCV, Baytown, or International provided
 
counterfeit valves to the U.S. nuclear power industry or violated any NRC regulations.


==DISCUSSION==
==DISCUSSION==
The NRC determined that the SCV list of customers who purchased Crane valves, appended as Attachment 1, contained numerous vendors that are also on the list of purchasers/suppliers of CMA International (CMA) of Vancouver, Washingto CMA is the subject of IN No. 88-48,  
The NRC determined that the SCV list of customers who purchased Crane valves, appended as
"Licensee Report of Defective Refurbished Valves." The inclusion of a company on the SCV customer list does not mean that the company knowingly or unknowingly supplied counterfeit or fraudulent product It should also be noted that SCV was listed as a possible customer of CMA, through whom licensees may have purchased valves supplied by CMA, as noted in Attachment 1 to Supplement 2 of IN No. 88-4 Licensees may wish to review the list of SCV customers in Attachment 1 to confirm the acceptability of procured equipmen A valve can go through two or more distributors before reaching the end-user facilit A nuclear power plant could buy a commercial-grade valve from a valve distributor for the purpose of dedicating the valve for safety-related us The establishment and verification of procedures to trace procured equipment and material to the original equipment manufacturer is often an important prerequisite to meaningful inspection and testing which may be employed in the dedication proces Inadequate licensee verification of traceability of procured equipment may result in counterfeit or fraudulent equipment being installe This IN requires no specific action or written respons If you have any questions about this matter, please contact the technical contact listed below or the appropriate NRR project manage IN 1991-09, Rev. 1  
 
Attachment 1, contained numerous vendors that are also on the list of purchasers/suppliers of
 
CMA International (CMA) of Vancouver, Washington. CMA is the subject of IN No. 88-48, Licensee Report of Defective Refurbished Valves. The inclusion of a company on the SCV
 
customer list does not mean that the company knowingly or unknowingly supplied counterfeit or
 
fraudulent products. It should also be noted that SCV was listed as a possible customer of
 
CMA, through whom licensees may have purchased valves supplied by CMA, as noted in
 
Attachment 1 to Supplement 2 of IN No. 88-48. Licensees may wish to review the list of SCV
 
customers in Attachment 1 to confirm the acceptability of procured equipment.
 
A valve can go through two or more distributors before reaching the end-user facility. A nuclear
 
power plant could buy a commercial-grade valve from a valve distributor for the purpose of
 
dedicating the valve for safety-related use. The establishment and verification of procedures to
 
trace procured equipment and material to the original equipment manufacturer is often an
 
important prerequisite to meaningful inspection and testing which may be employed in the
 
dedication process. Inadequate licensee verification of traceability of procured equipment may
 
result in counterfeit or fraudulent equipment being installed.
 
This IN requires no specific action or written response. If you have any questions about this
 
matter, please contact the technical contact listed below or the appropriate NRR project
 
manager.
 
IN 1991-09, Rev. 1  


==CONTACT==
==CONTACT==
This IN requires no specific action or written respons Please direct any questions about this matter to the technical contact listed below or the appropriate NRR project manage /RA by TQuay for/ Michael J. Case, Director Division of Policy and Rulemaking Office of Nuclear Reactor Regulation  
This IN requires no specific action or written response. Please direct any questions about this
 
matter to the technical contact listed below or the appropriate NRR project manager.
 
/RA by TQuay for/
                                      Michael J. Case, Director
 
Division of Policy and Rulemaking
 
Office of Nuclear Reactor Regulation


===Technical Contact:===
===Technical Contact:===
Samir Darbali, NRR/DPR 301-415-1360 e-mail: sxd7@nrc.gov Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collection
Samir Darbali, NRR/DPR
 
301-415-1360
                      e-mail: sxd7@nrc.gov


===Attachment:===
Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.
List of Customers Who Purchased Crane Valves from Southern California Valve Maintenance  
 
Attachment:
1. List of Customers Who Purchased Crane Valves from Southern
 
California Valve Maintenance


IN 1991-09, Rev. 1  
IN 1991-09, Rev. 1  


==CONTACT==
==CONTACT==
This IN requires no specific action or written respons Please direct any questions about this matter to the technical contact listed below or the appropriate NRR project manage /RA by TQuay for/ Michael J. Case, Director Division of Policy and Rulemaking Office of Nuclear Reactor Regulation  
This IN requires no specific action or written response. Please direct any questions about this
 
matter to the technical contact listed below or the appropriate NRR project manager.
 
/RA by TQuay for/
                                              Michael J. Case, Director
 
Division of Policy and Rulemaking
 
Office of Nuclear Reactor Regulation


===Technical Contact:===
===Technical Contact:===
Samir Darbali, NRR/DPR 301-415-1360 e-mail: sxd7@nrc.gov Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collection
Samir Darbali, NRR/DPR
 
301-415-1360
                            e-mail: sxd7@nrc.gov
 
Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.
 
Attachment:
1. List of Customers Who Purchased Crane Valves from Southern
 
California Valve Maintenance
 
Distribution:
 
===IN Reading File===
ADAMS Accession Number: ML072500391 OFFICE                PGCB:DPR            TECH EDITOR      EQVB:DE                  OGC
 
NAME                  SDarbali            LCulp            PPrescott* for DThatcher Beth Mizuno*
DATE                  9/11/07              9/12/07          9/14/07                  9/13/07 OFFICE                LA:PGCB:DPR          PGCB:DPR          BC:PGCB:DPR              D:DPR
 
NAME                  CHawes              DBeaulieu        MMurphy                  TQuay for MCase
 
DATE                  9/13/07              9/17/07          9/24/07                  9/25/07
*With comments that have been incorporated
 
OFFICIAL RECORD COPY
 
ATTACHMENT 1 IN 1991-09, Rev. 1 CUSTOMERS WHO PURCHASED CRANE VALVES FROM
 
SOUTHERN CALIFORNIA VALVE MAINTENANCE
 
===AMFAC                                Neilson===
AMANS, W.F.                          Palmeroy, J.H.
 
===Bay Valve                            P.E. OHair===
B&M Trading                          Piping Specialities
 
===BHF                                  PITT, Norman===
B&L Valve                            R&D Valve
 
Bel Kal                              Republic Supply
 
===Berg Dorf                            Roper Detroit===
Burney Valve                          Santa Maria Oil Field
 
Calatex                              S. Central Valve
 
Crown Industrial                      Supply Specialties
 
===Flickenger                            Valve Services===
Grant Supply                          Wallace, James
 
G.V.S.                                Weslo Corp.
 
===Illinois Valve                        ARA Valve===
Industrial Valve                      Demenno/Kerdoon
 
===International Valve                  Floor Drilling===
L.A. Valve Proc.                      Nielson Valve


===Attachment:===
Jackson/Marcus                        Petro Valve
List of Customers Who Purchased Crane Valves from Southern California Valve Maintenance


Distribution: IN Reading File
===Laundry Specialties                  Phoenix Valve===
M&N Valve                            Union Oil


ADAMS Accession Number: ML072500391 OFFICE PGCB:DPR TECH EDITOR EQVB:DE OGC NAME SDarbali LCulp PPrescott* for DThatcher Beth Mizuno* DATE 9/11/07 9/12/07 9/14/07 9/13/07 OFFICE LA:PGCB:DPR PGCB:DPR BC:PGCB:DPR D:DPR NAME CHawes DBeaulieu MMurphy TQuay for MCase DATE 9/13/07 9/17/07 9/24/07 9/25/07 *With comments that have been incorporated OFFICIAL RECORD COPY ATTACHMENT 1 IN 1991-09, Rev. 1 CUSTOMERS WHO PURCHASED CRANE VALVES FROM SOUTHERN CALIFORNIA VALVE MAINTENANCE
===McCoy, Fred                          Western Valve===
Moody Olstad


AMFAC Neilson AMANS, Palmeroy, Bay Valve P.E. OHair B&M Trading Piping Specialities BHF PITT, Norman B&L Valve R&D Valve Bel Kal Republic Supply Berg Dorf Roper Detroit Burney Valve Santa Maria Oil Field Calatex S. Central Valve Crown Industrial Supply Specialties Flickenger Valve Services Grant Supply Wallace, James G. Weslo Cor Illinois Valve ARA Valve Industrial Valve Demenno/Kerdoon International Valve Floor Drilling L.A. Valve Pro Nielson Valve Jackson/Marcus Petro Valve Laundry Specialties Phoenix Valve M&N Valve Union Oil McCoy, Fred Western Valve Moody Olstad
The inclusion of a company on this list does not mean that the company


The inclusion of a company on this list does not mean that the company knowingly or unknowingly supplied counterfeit or fraudulent products.}}
knowingly or unknowingly supplied counterfeit or fraudulent products.}}


{{Information notice-Nav}}
{{Information notice-Nav}}

Latest revision as of 03:52, 23 November 2019

Counterfeiting of Crane Valves
ML072500391
Person / Time
Site: Palo Verde, River Bend, Diablo Canyon, South Texas, San Onofre, Comanche Peak  Southern California Edison icon.png
Issue date: 09/25/2007
From: Michael Case
NRC/NRR/ADRA/DPR
To:
References
IN-91-009, Rev. 1
Download: ML072500391 (5)
v • d • e


UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF NUCLEAR REACTOR REGULATION

WASHINGTON, D.C. 20555 September 25, 2007 NRC INFORMATION NOTICE 1991-09, REV. 1: COUNTERFEITING OF CRANE VALVES

ADDRESSEES

All holders of operating licenses or construction permits for nuclear power reactors.

PURPOSE

The U.S. Nuclear Regulatory Commission (NRC) is re-issuing this information notice (IN) to

correct IN 1991-09, Counterfeiting of Crane Valves, which was issued on February 5, 1991, to

alert licensees to potential problems with counterfeit valves. This revision supersedes the

original IN in its entirety. It is expected that recipients will review this information for applicability

to their facilities and consider action, as appropriate, to avoid similar problems. However, suggestions contained in this IN do not constitute NRC requirements; therefore, no specific

action or written response is required.

DESCRIPTION OF CIRCUMSTANCES

As a result of information obtained from officials of the U.S. Customs office, and as documented

in the Settlement Agreements resulting from a civil suit brought by the Crane Company and

settled out of court in October 1987, it was determined that counterfeit Crane Company (Crane)

valves were sold to an Atlantic Richfield Company (ARCO) chemical plant near Houston, Texas.

The NRC was informed that ARCO ordered eight 4-inch, 1500-psi, pressure-sealed Crane

valves from the Baytown Supply Co. (Baytown). Baytown ordered the valves from International

Valve Service, Inc. (International), and International ordered the valves from Southern California

Valve Maintenance Company (SCV).

SCV had the valves manufactured in Taiwan. Upon arrival in the United States, the valves bore

the mark SCV. The valves were sent to the Amesse Welding Service (Amesse) where the

name Crane was apparently welded to each valve body.

The valves failed pressure testing performed by ARCO before installation. During the testing, ARCO found newspapers printed with Chinese characters in the valves. An expert on Crane

valves examined the valves and identified them as counterfeit. Six of the valves were repaired

and used by ARCO. The remaining two valves that could not be repaired were returned to SCV.

ML072500391

IN 1991-09, Rev. 1 The NRC verified that the following nuclear power plants did not have SCV, Baytown, or

International on their approved vendor lists: Comanche Peak, River Bend, South Texas Project, Waterford, Palo Verde, and Diablo Canyon. These power plants were selected because they

were located close to one of the three companies listed above and may have done business with

them. Southern California Edison did have a contract with SCV to maintain and repair valves at

the San Onofre Nuclear Generating Station, but has concluded that its established internal work

assignment and control procedures provided adequate assurance of the work performed by

SCV. The NRC does not have any direct evidence that SCV, Baytown, or International provided

counterfeit valves to the U.S. nuclear power industry or violated any NRC regulations.

DISCUSSION

The NRC determined that the SCV list of customers who purchased Crane valves, appended as

Attachment 1, contained numerous vendors that are also on the list of purchasers/suppliers of

CMA International (CMA) of Vancouver, Washington. CMA is the subject of IN No. 88-48, Licensee Report of Defective Refurbished Valves. The inclusion of a company on the SCV

customer list does not mean that the company knowingly or unknowingly supplied counterfeit or

fraudulent products. It should also be noted that SCV was listed as a possible customer of

CMA, through whom licensees may have purchased valves supplied by CMA, as noted in

Attachment 1 to Supplement 2 of IN No. 88-48. Licensees may wish to review the list of SCV

customers in Attachment 1 to confirm the acceptability of procured equipment.

A valve can go through two or more distributors before reaching the end-user facility. A nuclear

power plant could buy a commercial-grade valve from a valve distributor for the purpose of

dedicating the valve for safety-related use. The establishment and verification of procedures to

trace procured equipment and material to the original equipment manufacturer is often an

important prerequisite to meaningful inspection and testing which may be employed in the

dedication process. Inadequate licensee verification of traceability of procured equipment may

result in counterfeit or fraudulent equipment being installed.

This IN requires no specific action or written response. If you have any questions about this

matter, please contact the technical contact listed below or the appropriate NRR project

manager.

IN 1991-09, Rev. 1

CONTACT

This IN requires no specific action or written response. Please direct any questions about this

matter to the technical contact listed below or the appropriate NRR project manager.

/RA by TQuay for/

Michael J. Case, Director

Division of Policy and Rulemaking

Office of Nuclear Reactor Regulation

Technical Contact:

Samir Darbali, NRR/DPR

301-415-1360

e-mail: sxd7@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.

Attachment:

1. List of Customers Who Purchased Crane Valves from Southern

California Valve Maintenance

IN 1991-09, Rev. 1

CONTACT

This IN requires no specific action or written response. Please direct any questions about this

matter to the technical contact listed below or the appropriate NRR project manager.

/RA by TQuay for/

Michael J. Case, Director

Division of Policy and Rulemaking

Office of Nuclear Reactor Regulation

Technical Contact:

Samir Darbali, NRR/DPR

301-415-1360

e-mail: sxd7@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.

Attachment:

1. List of Customers Who Purchased Crane Valves from Southern

California Valve Maintenance

Distribution:

IN Reading File

ADAMS Accession Number: ML072500391 OFFICE PGCB:DPR TECH EDITOR EQVB:DE OGC

NAME SDarbali LCulp PPrescott* for DThatcher Beth Mizuno*

DATE 9/11/07 9/12/07 9/14/07 9/13/07 OFFICE LA:PGCB:DPR PGCB:DPR BC:PGCB:DPR D:DPR

NAME CHawes DBeaulieu MMurphy TQuay for MCase

DATE 9/13/07 9/17/07 9/24/07 9/25/07

  • With comments that have been incorporated

OFFICIAL RECORD COPY

ATTACHMENT 1 IN 1991-09, Rev. 1 CUSTOMERS WHO PURCHASED CRANE VALVES FROM

SOUTHERN CALIFORNIA VALVE MAINTENANCE

AMFAC Neilson

AMANS, W.F. Palmeroy, J.H.

Bay Valve P.E. OHair

B&M Trading Piping Specialities

BHF PITT, Norman

B&L Valve R&D Valve

Bel Kal Republic Supply

Berg Dorf Roper Detroit

Burney Valve Santa Maria Oil Field

Calatex S. Central Valve

Crown Industrial Supply Specialties

Flickenger Valve Services

Grant Supply Wallace, James

G.V.S. Weslo Corp.

Illinois Valve ARA Valve

Industrial Valve Demenno/Kerdoon

International Valve Floor Drilling

L.A. Valve Proc. Nielson Valve

Jackson/Marcus Petro Valve

Laundry Specialties Phoenix Valve

M&N Valve Union Oil

McCoy, Fred Western Valve

Moody Olstad

The inclusion of a company on this list does not mean that the company

knowingly or unknowingly supplied counterfeit or fraudulent products.


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