ML20081B768

Forwards Description of Steps to Be Taken to Identify Necessary Organizational & Procedural Action,Resumes of Phase I Team Members,Summarizes of Bechtel Nuclear Experience & Contract Forms.Info Deleted

ML20081B768
Person / Time
Site:	Zimmer
Issue date:	11/08/1982
From:	Reinsch H BECHTEL GROUP, INC.
To:	Dickhoner W CINCINNATI GAS & ELECTRIC CO.
Shared Package
ML20081B738	List: ML20081B760 ML20081B765 ML20081B768
References
FOIA-83-77, FOIA-83-A-13 NUDOCS 8310280231
Download: ML20081B768 (48)

Text

{{#Wiki_filter:m. ~: Bechtel Power Corporation 3 q* Engineers - Constructors t .g Fifty Seale Street l San Francisco, California g, g MadAccren: P. o. Ben 3965. San Francisco.CA 94nt ~ Nove=ber 8,*1982 [* p.g.... :. Mr. W.E. Dickhoner, President Cincinnati Cas and Electric Company 139. East Pourth Street Cincinnati, Ohio 45202

Dear Mr. Dickhoner:

.v I We appreciated the opportunity, the frankness, and the cooperation of yo;r ,l personnel in discussing the status of your project last Friday. Ve agree that j .this is a critical time in the schedule for the ce=pletion of the W.H. 21==cr j pla nt. The co=pletion of your project is vital to your co=pany as well as the g, future of the U.S. nuclear utility industry. Bechtel is prepared to =obilize our full capability.and experience to help Cincinnati Cas and Electric j co=plete the project. } We believe that our manage =ent experience at Fer=i, VPPSS, South Texas; and .] Diablo Canyon can provide you with the assistance your project' organization 5 needs to r'e solve the current proble=' areas and co=plete the Quality s I Confir=ation Progra=. E Appendix A describes the i==ediate steps we vould take to identify I 'crganizational, procedural, and actions that are needed. This Phase I of the initial verk is expected to take three weeks, in which ti=e our senior people .vould further design the approach and a staffing plan for the co=pletion of l i the project. Generally, those sa=e people, upon ce=pletion of this phase, vould be available to carry out the i=ple=entation of the plan. j l Appendix 3 includes the resu=es of, the Phase I tea: =e=bers. You'll find the= in nuclear power plant, and particularly EWR, projects. In J very experienced j selecting these candidates, ve have e=phasized the need for experience in: 3 g) -[ 1. Project manageEent and construction =anage=ent ( .l ' ;f..;, Integrated project control d .3. QA/QC programs '.n Construction co=pletion, systens turnover, and startup y 4. 3 Appendix C includes su== aries of Bechtel's nuclear experience, whi ch, as you t know,'is approached by no other co=pany. l 'E d ~ 9 l e, '4 8310280231 830824 ~ PDR FOIA l DEVINE83-A-13 PDR I - - --- a

Li P.r. V.11. Dickhonar, Pr sident j Envrbar 8, 1982' Bechtel Power Corporation , Pcg 2 a f,. s .So=e of Bechtel's in-depth capabilities that ' we think are i=portant to this job are: h i 2 1. Co'nstruction~ manage =cnt and direct,-hire construction 1, 2. Quality control progra=s i e u j ggtro. ject control syste=s for int egra tion of quality, schedule and cost priorities 1, J, 4 Reactor contain=ent expertise 1/ 5. Welding expertise and national code relationships .t 6. Nuclear regulatory licensing expertise '0 7. Labor relations q 'a t-3 ,8. Operating power plant services

4,

'In Appendix D, for your convenience we have included copies of two c ont ra c t for=s. The first is a technical services agree =ent which is, our nor=al cont ra c t for studies si=ilar to the Phase I effort. The second is the for= ve t nor= ally use for = ors broad-based support of nuclear plant project f. co=pletions. This Phase II contract allous assign =ent of the activities tha t A. ve can f oresee f or successful ce=pletion of the project anri allows Cincinnati 1-Cas and Electric, at their dis:.retien to utilize any of Bechtel's capabilities that =ay be required. 4 In the event that additional support services are needed after project ) c e= ple tio n, ce==ercial ter=s are included that allow Cincinnati Cas and { Electric to use our Operating Plant Services organization after ce==ercial operation for whatever help =ay be needed. 'h I have found it useful to personally intensively review our perfor=ance and -( eve rall project progress in periodic executive reviev =eetings with your la counterparts in other utilities. I reco =end a si=ilar progra= on the Zi==er i project.. n Bechtel is prepared to provide expertise and resources, to assist Cincinnati ~ 4 Cas and Electric in the successful co=pletion of the W.H. Zi==er Nuclear y Station project. We'do have sufficient experienced personnel to acco=plish it d in conjunction with the projec t's existing capable personnel. We look fo:vard j F.. uerking with you towards that end. Sincerely, .u 1 N.O. Reinsch President h P.OR/1sv '.f Enclosures

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CG&E - BECHTEL OFF-SITE MEETINGS DATE ATTENDEES November 5, 1982 CG&E Messrs. Dickhoner, Borgmann, & Sylvia Bechtel - Messrs. Murowski, Wahl, & Henry November 8, 1982 CG&E Mr. Borgmann Bechtel - Messrs. Wahl, Henry, & Trommerhaust November 19, 1982 CG&E Mr. Dickhoner Bechtel - Messrs. Henry and Jones November 24, 1982 CG&E Mr. Borgmann Bechtel - Mr. Trommerhauser Dec&mber 17, 1982 CG&E Mr. Dickhoner Bechtel - Mr. Jones November 17, 1982 Joint Meeting - NRC Region III Bechtel CG&E l o l t i I e l I w-r e + e ,--yww - y e w,, ,.-eyygp,. p-p,g.ww.-y-**#-r-M9-te 9

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h ATTACHMENT 13 O O 6

e s SITE. VISITS BY BECHTEL PERSONNEL . AT THE WM. H. ZIMMER NUCLEAR POWER STATION November 15, 1982 November 19, 1982 D. Stover C. Rixford R. Soderholm R. Soderholm G. Stanley D. Stover J. Trommerhauser December 2, 1982 R. Scott J. Walker G. Stanley R. K. Vassar R. Scott C. Turnbow R. Soderholm G. W. Stanley L. Campbell L. L. Campbell W. Brown G. Jones-December 9, 1982 November 16, 1982 G. Stanley G. Jones R. Soderholm C. Turnbow D. Stover D. Stover G. Jones R. Soderholm R. Scott C. Rixford M. White L. Campbell M. Krupa R. Scott J. Walker December 10, 1982 G. Stanley G. Stanley November 17, 1982 R. Scott ~ ~ D. Stover L. Campbell R. Soderholm R. Scott G. Jones G. Stanley M. White J. Walker M. Krupa W. Henry G. Jones December 13, 1982 C. Rixford R. Soderholm G. Jones D. Stover M. Krupa G. Stanley November 18, 1982 D, Stover M. White' L. Carrphell R, Scott W. Henry G. Jones December 14, 1982 R. Scott R. Soderholm G. Jones G. Stanley G. Stanley D. Stover D. Stover C. Turnbow R. Scott J. Walker M. White M. Krupa Page 1 of 2 O

a a i SITE VISITS BY BECHTEL PERSONNEL AT THE kH. H. ZIMMER NUCLEAR POWER STATION (Continued) December 15, 1982 December 20, 1982 D. Stover G. Stanley R. Scott J. Baramvi ~ M. White R. Soderholm December 21, 1982 G. Jones M. Krupa G. Stanley G. Stanley J. Baramyi December 16, 1982 December 22, 1982 G. Jones G. Stanley M. Krupa R. Scott R. Soderholm G. Stanley D. Stover M. htite P. Dallas December 17, 1982 R. Scott G. Stanley D. Stover M. Krupa R. Soderholm M. White P. Dallas 7 i ( Page-2 of 2 m m

O 9 ~ ATTACHMENT 14

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8 e O O P e t e o + 4 N m, 9 e 1 l O e ATTACHMENT 15 N O r. I -%-+- ..w

i, s (location) - 1-22-83 (date) I, ereby make the following statement to John R. Sinclair and Edward C. Gilbert, who have identified themselves to me as Investigator (s)of the United States Nuclear Regulatory Commission. I make this statement freely with no threats or promises of reward having been made to me. This statement is provided to furnish information concerning my knowledge of the presence of representatives of the Bechtel Corporation . at the William H. Zimmer nuclear project during a period ranging-from approximately August 1, 1982 until t 'My employment it Zimmer and exact duties as ag i i \\ My specific ) knowledge of personnel from Bechtel being present at Zimmer pertains to some personal observations, a first hand discussion with a Bechtel \\ representative, and discussions with lpersonnel iwho also were aware of Bechtel's presence at the site. As I recall, the first time that I observed new personnel at the site was on or about August 1,1982 and possibly as late as August 3rd. At that time I beli' eve there were six individuals who arrived, at the site, who were wearing Gincinnati Gas and Electric (CG&E) hardhats but were obviously visitors and gave every appearance of being Bechtel employees. My reason for saying this is that despite the hardhats one 1 of 6

r. of the described individuals carried a briefcase containing the Bechtel Corporation logo and another wore a blazer embroidered with the same logo. When these individuals, all wearing suits, arrived at the. Zimmer site they originally entered through the main gate about 9:30 AM. This was the Southgate and was the gate designated entrance for construction and QC personnel assigned or working on the project. The first day on the s'ite I did observe the same individuals wearing visitor badges, however, I do not believe that the individuals were wearing the visitor badges when they were observed on subsequent occassions. On this first observation, all of the individuals, who ~ were wearing suits, walked past the Personnel trailor and the First Aid station into the permanent building known as the " head shed." The new people on site initially " stood out" to me, and,others, because all t of the everyday or routine work was being done by three groups basically-- CG&E, Kaiser and Catalytic. During the early period that these individuals, believed.to be Bechtel employees, were on site the group totalled approximately six.

Later,

~ the same group increased to approximately eight and then twelve which was the number on site prior to my leaving the Zimmer project. From my observations and others it is believed that the group remained at the Zimer site continuously during the period August through November. This does not mean they were observed daily but they were seen on a regular basis. I also recall that the described individuals first 2 of 6 i t. O 9 A s o__.

.+. ,v .- -.c._.n. . a. v . -... = ~ + worked out of the main offices where all of the site construction managers were located. This continued until a new " double-wide" trailer was set up at the site around August 15, 1982. Then these . individuals were observed working out of the double-wide trailer. The double wide trailer did not contain any specific or unique markings, such as a Bechtel logo, however, individuals belonging t~o the described group' were observed, by me, entering and leaving this trailer. Recently, I and other lat my present job viewed an aerial photograph' a y of the Zimer project at which time we all independently identified the same trailer as being the "Bechtel trailer." During this in.terview o this trailer has been described, to me, as trailer #152. 2s. ~ - Sometime after these individuals arrived at the site, and after the i trailor was brought to the site, I had a personal conversation with one of the.ndividuals. The individual was a man in his mid twentie's, approxima'.ely 5'11" in height,180 lbs, light average length hair, clean shaven with no distinctive characteristics such as scars, tatoas, accent or glasses. I would be able to recognize this individual if I were to see him again. In addition, he impressed me because of his wel.1 dressed. appearance (like an executive). I also met this individual on other occassions and in fact had my " jump started" with his assistance. On that particular day my battery fith jumper cables ~ from had run down and this individual started my his car which was parked in the North parking lot as was my I, My 3 of 6 J

_. _ _ _.. _ _.. - ~ reason for having to park in the north lot was that the main p'arking area was full. As I recall, his car was a maroon Datsun 280 Z with black louvres and California license ' tags. This car and other cars with California license plates had been repeatedly observed, by me, in the north parking area. Based'on this I and others assumed that these individuals entered the Zimmer site through the North gate. During our initial conversation, this individual and at least four others were in the containment building on the 5th floor. I questioned him as to why they were at Zimmer. His' response, as I recall, was someth' ng to the effect that he work for Bechtel Corp. and "that i their job was to study the plant for ccde compliance and accountability and to see if.the plant could be completed within normal quality assurance requirements ' He also said they were doing a management review. This same individual aise t :plained that "Bechtel would submit their findings in a report to the number one man." I assumed he f meant Mr. Earl Borgmann of CG&E. As I recall, he also said that "Bechtel had 200 men on stand-by ready to come to Zimmer." At some i l point I also-learned that a Bechtel executive in the construction area atthebidlandprojectvould"runtheauditatZimmer," This individual's name wa: something like $oderholm. l I bel.ieve there are many employees who were at Zimmer who were aware of these representatives from Bechtel. d Concerning my previous statement identifying a Mr. Soderholm: I believe he was identified to me by two DC inspectors who had come from the - a 4 of

Palo Verde nuclear project which is being constructed by Bechtel. 8 They had informed me that they had been in constant centact with Bechtel regarding future e'mployment at Zimmer and they had actually been advised that they would be hired by Bechtel and told what their salary would be. I cannot recall their names at this time but I do remember their descriptions. One of the QC inspectors looked " exactly" like the actor Dick Van Patton and the other inspector had.long hair, a beard, and often wore a shirt with a Har. ley-Davidson logo. The exact date of the conversation I cannot recall, however I believe it occurred before August. At my present assignment as a ? i ~ I The consensus of most of the individuals is that the purpose of the Bechtel people on site was that Bechtel had come to Zimmer with the intention of replacing Kaiser on the project if the .results of their report showed that the " job could be done feasibly." Discussions and rumors concerning Bechtel coming to Zimmer had started ~ prior to August 1982 and had been so " widespread" that when the new group l of people arrived on approximately August 1 noone was surprised at what 1 appeared to be Bechtel employees. Again, from my observations and others this group had complete independence and total access to any area of the site.to include retrieval of any documentation. One other observation of some members of the group occurred approximately September 1,1982. At that tim 6 I saw about three memb ers.of the group l l of six or eight standing just outside the " material hatch" of the containment l 5 of 6

(~-.~.-_-...-.....- s e building at the ground level elevation. One member of the group was the same individual with which I had previous conversations and drove the 280 Z. In addition to the group, one of the NRC inspectors, Fred Christianson, was also present. Additiona11y, there was an ' unidentified CG&E engineer ~ two unknown CG&E inspectors and a Kaiser QC inspector. The activity that they were observing pertained to the removal of a " hanger" from an area immediately ins'ide the building. I have no further information related to this observation. I cannot provide any additional information concerning this matter. I have. read the foregoing statement consisting of 9 handwritten / typed pages. I have made and initialed any necessary corrections and have ' ' signed my name in ink in the margin of each page. I swear that the foregoing' statement is true and correct. Signed on 1-22-83 at 8:28Rd.EST (date[ (time) SIGNATURE: - original signed by y Subscribed and sworn to before me this 22 day of Janua ry, 1983 ..--l at _( ~ INVESTIGATOR: - original signed by John R. Sinclair - WITNESS: - original signed by Edward C. Gilbert - O eree 6 of 6 t

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r i ATTACHMENT 17

.i t ,i ~ ) 23 January 1983 12:39 am Date hereby.makethefollowingstatementto I, John R. Sinclair and Edward C. Gilbert, who have identified themselves to.me as investigators of the U. S. Nuclear Regulatory Comission's Office of Investigations. I make this statement freely with no promises of reward or' threats having been made to me. Prior to any questions Mr. Sinclair advised me that the areas of investigation concerned a recent allegation that representatives of the Bechtel Corporation had been engaged in work at the Zimmer project prior to early November 1982. I was also advised that the Office of Investigations (01) was investigating alleged falsif.ication of quality control (QC) documentation and intimidation of QC inspectors. I began my employment at the William H. Zimmer nuclear project in for the project contractor Henry J. Kaiser . f (Kaiser) and remained in that position through After = 'I accepted a posit' ion with s korkingfor .i I remained in that position until J ~~ \\ i 1 of 4 .)

u \\' ~ I ....--..Iwo...uld like' to respond to questions e ^ relating to the Bechtel presence at Zimer before providing. other information. I.believe that one of the first encounters with individuals iden ified. .as Bechtel employees occurred in September 1982. This knowledge was the result oft . sometime in September and being introduced to three individuals who were presented as Bechtel representatives. I cannot at this time recall the names of the individuals but distinctly recall them being introduced as Bechtel employees. I also recall that at some point in time several individuals were wa1 king around the site with Bechtel hardhats. This also occurred sometime before November 1982. The' reason for the presence of these original three Bechtel people was to set up or conduct an audit or something to that effect. Sometime shortly after the original meeting, probably October '1982 I was informed by an individual named ~ I that there were eight Bechtel employees on site and that j e 2 of'4 - - - - = _.es.*,*m_- e w 2e =, -,, pme.gu ,e%

r I real esta'te in the Cincinnati area. This conversation occurred just prior tog l \\ t (. At some point in time.the exact date which I cannot recall, a new trailer ~ was brought on to the ~Zimer site. This trailer I initially thought was to be used by one of the Kaiser departments and in particular the training group. As I recall h.ade a coment to the Kaiser 1 training supervi,sor, Jim Danner as to whether training was going into the new trailed ( Danner's reply to me was that the trailer was not for training but was in fact for Bechtel employees working at the site. In response to' questions pertaining to my knowledge of consultants utilizing the described trailer, I wish to state the consultants that I am aware of working for CG&E were primarily working in the individual CG&E departments and mainly in. spaces primarily utilized by CG&E. One other employee who worked at Zimmer and was himself a consultant was Gary Shrader. I believe that Shrader in fact knew the names of some of the individuals. 'Shrader also quit the Zimmer project even though he was making a very large salary, approximately one hundred thousand, ~ p +.w w.r.*. .,... rm .~ S M.5 i 3 of 4' (. a ~ e w w -p--- -y w----m

e t because of frustration in working for Harlan Sager, Quality Assurance Manager, CG&E and the company's refusal'to listen to his recommendations. I think Gary Shrader took a position at the Susquehanna nuclear project. I have been advised that NRC desires to schedule an additional interview regarding my knowledge of intimidation of QC personnel and alteration. of-QC documentation. I am willing to be interviewed on these subjects ~ and have no objection to providing a statement. I have read the foregoing statement consisting of 5 handwritten pages. I have'made and initialled any necessary corrections and have signed my name in ink in the margin of each page. I swear that the foregoing statement is true and correct. i - oricinal sioned by - l ~ r i Subscribed and sworn to before me this 23 day of January,1983, at r Witness -original signed by - John R. Sinclair (-original signed by) Edward C. Gilbert Investigator t 4 of 4 M*

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