ML20247H400

Responds to Re Settlement Agreements That Attempt to Restrict Individuals from Bringing Safety Concerns or Discrimination Matters to Attention of Federal Agencies, Including NRC

ML20247H400
Person / Time
Issue date:	07/18/1989
From:	Carr K NRC COMMISSION (OCM)
To:	Breaux J, Simpson A SENATE, ENVIRONMENT & PUBLIC WORKS
Shared Package
ML20005D588	List: ML20005D587 ML20247H400
References
FRN-54FR30049 AD21-2-48, NUDOCS 8907280374
Download: ML20247H400 (4)

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UNITED STATES f.

NOCLEAR REGULATORY COMMISSION j

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July 18, 1989 CHAIRMAN I

The Honorable John Breaux, Chairman Subcommittee on Nuclear Regulation Committee on Environment and Public Works United States Senate Washington, D.C.

20510-6175

Dear Mr. Chairman:

I am responding to your letter of June 22, 1989, regarding settle-ment agreements that attempt to restrict individuals from bringing safety concerns or discrimination matters to the attention of Federal agencies, including the Nuclear Regulatory Commission (NRC).

As you know, in April of this year, NRC's Executive Director for Operations issued a generic letter to the senior executive officers of nuclear facilities, major nuclear service companies, and major nuclear suppliers concerning this issue.

That letter requested that licensees examine current and previous employee settlement agreements and notify the NRC by July 31, 1989, if clauses that restrict employees or former employees from communi-cating with the NRC about safety matters are identified.

If any are found, the companies are to promptly inform the enployee or former employee that they may freely communicate with the NRC at any time without fear of retribution.

The Commission has also directed the NRC staff to publish in the Federal Reefster proposed changes to the regulations to address these matters.

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NRC's Office of Investigations (01) and the Office of Nuclear l

Reactor Regulation (NRR) are pursuing the employee settlement j

agreement issues at the Comanche Peak and Millstone nuclear power l

stations.

With respect to Comanche Peak, Mr. Me.cktal to date has

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refused to cooperate voluntarily in the ongoing NRC investigation.

j Both before and since your hearing, OI and the Comanche Peak l

Project Division of NRR have made extensive but unavailing efforts i

to interview Mr. Macktal.

He has also failed to appear at the i

designated time in response to an NRC-issued subpoena; i

accordingly, we have requested the Department of Justice to j

institute action to enforce the subpoena.

The staff recently

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conducted a three-day interview with the individuals at the j

Millstone facility, and a joint NRC Headquarters and Region I l

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follow-up inspection is currently taking place.

These matters

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will continue to receive prompt attention until satisfactorily resolved.

I can assure you that the Commission intends to preserve the integrity of our regulatory process and to ensure that public health and safety are protected.

Sincerely, Yve _%.&

Kenneth M. Carr I

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. July 18.1989 CHAIRMAN.

Y The-Honorable Alan K. Simpson Ranking Minority Member

' Subcommittee on Nuclear Regulation o

Committee on Environment and Public Works UnitedrStates: Senate Washington, D. C.

20510-6175

' Dea r. Sena tor'- Simpson:

I am responding to your letter of June-22 1989, regarding. settle--

(ment: agreements that attempt to restrict individuals from bringing

. safety concernsJorJdiscrimination matters to the attention.of 4'

Federal agencies, including the Nuclear Regulatory Commission (NRC).

'As you know, in April of.this year, NRC's Executive Director for' Operations 11ssued a generic letter;to the senior executive officers of nuclear facilities, major nuclear serv;1ce companies, an'd major' nuclear suppliers concerning this issue.

That letter requested that licensees' examine current and-previous employee' settlement ~ agreements and notifyLthe'NRC by July 31, 1989, if clauses that restrict employees or former1 employees from:communi-cating with the-NR.C about' safety matters are identified.

If.any are found, the companies are to promptly inform'the. employee or former. employee that they may freely communicate with the NRC at any time wi thout ' fear of retribution.

The Commissien'has a~ iso-

. directed the NRC staff to publish in.the Federal Register proposed j

changes to the regulations to address.these matters.

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'NRC's Office of Investigations (01) and the Office of Nuclear Reactor Regulation (NRR) are pursuing-the employee. settlement

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agreement issues at the Comanche Peak and Millstone nuclear power

' stations.. With respect to Comanche Peak, Mr. Macktal to'date has 1

refused to' cooperate voluntarily in the ongoing NRC investigation.

~Both before and since your hearing, 0I and the Comanche Peak Project Division of NRR have made extensive but unavailing efforts to interview Mr. Macktal.

He has also failed to appear at the E

designated' time in response to an NRC-issued subpoena; L.

accordingly.. we have requested the Department'of Justice to 3

institute action to enforce the subpoena.

The staff recently

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conducted'a three-day interview with the individuals at the 4

l Millstone facility, and a joint NRC Headquarters and Region I l

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, follow-up-inspection is currently taking place.

These matters will continue to receive prompt attention until satisfactorily resolved.

I can assure you'that the Commission intends to preserve-the integrity of our regulatory process and to ensure that public health and safety are protected.

Sincerely, hA.k s

Kenneth M. Carr

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. couwim! ON ENVIRONMENT AND PUBUC WOAKS

' WASHINGTON. DC 20610-6175

' June 22,:1989 1

I The Honorable Lando W.

Zech, Jr.

Ch'irman a

U.S. Nuclear Regulatory Commission Washingtoni DC-20555

Dear Lando:

The Subcommittee on Nuclear Regulation has transmitted to

.the U.S.

Department'of Justice the enclosed letter and~

confidential memorandum regarding the Subcommittee's.

investigation'into settlement agreements. restricting the

. abilities of? employees at the: Comanche Peak. nuclear; power plant toTtestify or: provide _information to federal agencies ( including.

'the' Nuclear' Regulatory. Commission, regarding' safety matters or employee' discrimination.

We are'providing-you with a copy of this' transmittal so'that you may be' fully informed.of.the information that we believe is of regulatory significance.

Additionally, part of the information: contained-in this referral concerns attempts to restrict-_ testimony by employees at the Millstone Nuclear Power Station regarding allegations of unlawful employee. discrimination, intimidation, and harassment.

In_the. Subcommittee's opinion, such att'empts are. prohibited by Section 210 of-the Energy Reorganization Act and constitute a potential threat to the public health and safety.

For the nuclear regulatory process to function effectively, there must be no_ restrictions upon the abilities of employees at nuclear power plants.to provide information regarding plant safety or employee discrimination.

In addition to the information in this referral, there are other allegations regarding intimidation of employees at Millstone.

Several of these were recently published in an article?in the New Haven Register.

We urge _you to thoroughly investigate these allegations to ensure that employees at

' Millstone feel free to inform the NRC or the Department of Labor j

of whatever information they believe may be relevant to nuclear safety or worker conditions at Millstone.

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CORRESPONDENCE PDC l

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I The Subcommittee has given this matter a high priority because of the implications for public health and safety and the integrity of the regulatory process.

We hope that the NRC will do whatever is necessary to ensure that there has been no circumvention of the regulatory process or threat to the public health and safety at Comanche Peak, Millstone, or any other nuclear power plant.

We than u

r your prompt attention to these matters.

Sincerely yours, Anlif Alan.K. Simpsdn n Breaux' '

7 Ranking Minority Member hairman l

Subcommittee on Subcommittee on Nuclear Regulation Nuclear Regulation l

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. WASHINGTON, DC 20510-6876 June 6, 1989 Mr. Edward S.G. Dennis Assistant Attorney General.

Criminal Division

, United States Department of Justice Washington, DC 20530

Dear Mr. Dennis:

We~are writing to refer to the Department of Justice two confidential settlement agreements involving firms constructing the Comanche Peak nuclear power plant and former workers'at the plant that, in consideration for monetary payments to those workers, restrict the abilities of those workers to testify about the plant before federal agencies, including the Nuclear Regulatory Commission (NRC).

(Attachments 1 and 2 to the enclosed Subcommittee memorandum).

Additionally, we are referring two proposed settlement agreements at.the Millstone nuclear power station that were never signed but that'contain

.similar restrictions.

(Attachments 3 and 4).

The Subcommittee on Nuclear Regulation is extremely concerned that secret payments of money to workers at nuclear power plants to not testify about potential unsafe conditions or practices at the plants could seriously undermine the nuclear j

regulatory process and pose a threat to public health and safety.

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We would like the Department of Justice's opinion on

-l whether, in' general, these types of agreements violate federal criminal law or any other laws under the Department's jurisdiction.

Additionally, we are providing the Department with information known to the Subcommittee regarding the agreements in our possession for your determination of whether the Department should pursue any specific enforcement actions.

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From the civil law perspective, the Subcommittee believes that these agreements are illegal and unenforceable for several reasons.

First, basic contract law clearly states that contracts for the suppression of testimony are void as against public policy.

Courts will not enforce contracts seeking to procure the 1

absence of a witness from a civil or criminal proceeding.

1 Secondly, it appears to us that these agreements violate Section 210 of the Energy Reorganization Act of 1974, 42 U.S.C.

l Sec. 5851.

This provision prohibits an employer from discriminating against an employee "with respect to his L

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2-y. ', i compensation, terms, conditions, or privileges of employment" because the employee in any way participated in, assisted in, or testified in any proceeding under the Energy Reorganization Act or the Atomic Energy Act.

Thus, an agreement between an employer and an. employee that restricts the employee's ability.to testify before the NRC is contrary to Section 210 of the Energy Reorganization Act.

The NRC's General Counsel and the NRC's Executive Director for Operations have also interpreted Section 210 to prohibit these types of agreements.

From the criminal law perspective, it appears that these contracts may violate several criminal statutes, such as the statutes that prohibit bribery, obstruction of agency proceedings, witness tampering, and conspiracies against rights of citizens.

The Subcommittee is interested in the Department of Justice's position on whether these or any other criminal statutes prohibit these types of agreements.

The Subcommittee has given this matter a high priority because of the implications for public, health and safety.

Furthermore, we believe that these types of agreements have grave implications for the integrity of the federal regulatory process.

We respectfully request that the Department review this matter with these same considerations in mind.

We have enclosed a memorandum summarizing our knowledge regarding the background for the agreements and proposed agreements in our possession.

We also have attached relevant documents that may be helpful for your review.

If you have any questions, please do not hesitate to contact the Subcommittee staff.

We look forward to your response at the earliest possible time.

Sincerely,

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Jgj, Alan 1. Simpson th B.

Breaux Ranking Minority Member u airman Subcommittee on Subcommittee on Nuclear Regulation Nuclear Regulation

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Enclcsures:

Subcommittee Memorandum and Attachments i

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