ML060610205

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E-Mail from Meyer to Blough, PSEG to drop-in on Diaz on Monday (3 Pages) Attaching 3/9/04 Memo to Bergman from Roberts, Briefing Package for Drop-In Visit on March 15, 2004, by PSEG, Hope Creek Generating Station & Salem Nuclear Generating
ML060610205
Person / Time
Site: Salem, Hope Creek  PSEG icon.png
Issue date: 03/11/2004
From: Meyer G W
NRC Region 1
To: Blough A R, Miller H J, Wiggins J T
NRC Region 1
References
FOIA/PA-2005-0194
Download: ML060610205 (25)


Text

Je t pPage 1 From: Glenn Meyer To: Blough, A. Randolph; Miller, Hubert J.; Wiggins, James Date: 3/11/04 12:06PM

Subject:

PSEG to drop-in on Diaz on Monday The EDO's office has notified us that Ferland and Cassidy will drop-in on both Chairman Diaz and Comm. McGaffigan on Monday. (Diaz was a late entry).I concurred in the briefing package (attached), in which the PM used the Jan. 28th letter and the annual assessment letters extensively.-t 0

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Subject:

Creation Date: From: Created By: PSEG to drop-in on Diaz on Monday 3/11/04 12:06PM Glenn Meyer GWM(nrc.gov Recipients kplpo.KPDO ARB (A. Randolph Blough)HJMI (Hubert J. Miller)JTW1 (James Wiggins)Post Office kpl_po.KPDO Route Files Mail MESSAGE Options Expiration Date: Priority: Reply Requested:

Return Notification:

Concealed

Subject:

Security: Size 949 Date & Time 03/11/04 12:06PM None Standard No None No Standard James Wiggins -Revised Briefing Package q From: Robert FretzM To: Meyer, Glenn Date: 3/11/04 12:01 PM

Subject:

Revised Briefing Package includes the updated itinerary...Bob Z92 March 9, 2004 MEMORANDUM TO: Thomas A. Bergman, Chief Regional Operations and Program Management Section Office of the Executive Director for Operations FROM: Darrell J. Roberts, Acting Chief, Section 2 IRAI Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation

SUBJECT:

BRIEFING PACKAGE FOR DROP-IN VISIT ON MARCH 15, 2004, BY PSEG, RE: HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 (G20040139)

Attached is the briefing package on the status of the Hope Creek Generating Station (Hope Creek) and Salem Nuclear Generating Station, Unit Nos. 1 and 2 (Salem), as background for the drop-in visit by senior management of Public Service Enterprise!

Group with Commissioner McGaffigan on March 15, 2004. In addition, copies of recent letters concerning work environment issues at Hope Creek and Salem are attached to the briefing package.Docket Nos. 50-354, 50-272, and 50-311 Attachments:

As stated CONTACTS: John P. Boska Hope Creek Project Manager 415-2901 Robert J. Fretz Salem Project Manager 415-1324

,?FF11R:,U March , 20~04~MEMORANDUM TO: FROM:

SUBJECT:

Thomas A. Bergman, Chief Regional Operations and Program Management Section Office of the Executive Director for Operations Darrell J. Roberts, Acting Chief, Section 2 IRAI Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation BRIEFING PACKAGE FOR DROP-IN VISIT ON MARCH 15, 2004, BY PSEG, RE: HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 (G20040139)

Attached is the briefing package on the status of the H4ope Creek Generating Station (Hope Creek) and Salem Nuclear Generating Station, Unit Nos. 1 and 2 (Salem), as background for the drop-in visit by senior management of Public Service Enterprise Group with Commissioner McGaffigan on March 15, 2004. In addition, copies of recent letters concerning work environment issues at Hope Creek and Salem are attached to the briefing package.Docket Nos. 50-354, 50-272, and 50-311 Attachments:

As stated CONTACTS: John P. Boska Hope Creek Project Manager 415-2901 Robert J. Fretz Salem Project Manager 415-1324 DISTRIBUTION:

See attached list Accession Nos.: ML040650486 (Package)ML040630 Q 1 ket)~04ng Pack ag ML040280476 (Attachment 1)ML040580600 (Attachment 2)OFFICE PDI-2/PM**

PDI-2/PM PDI-2/LA NAME JBoska RFretz CRaynor DATE 03/08/04 03/09/04 03/09/04 OFFICIAL RECORD COPY/L)"- 198L6 -** See previous concurrence.

  • Concurrence via phone RGN-I/BC*

PD1-2/SC(A)

GMe er DRoberts 03/09/04 03/09/04 DISTRIBUTION FOR BRIEFING PACKAGE FOR DROP-IN VISIT ON MARCH 15,2004. BY PSEG, RE: HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 (G20040139)

Dated: March 9, 2004 Hard Copy with

Attachment:

SCollins (1)JJolicoeur (7)PDI-2 Reading File E-Mail: Non-Public WTravers CPaperiello WKane PNorry WDean SBurns/KCyr JJolicoeur SCollins WBorchardt BSheron TMarsh OGC OPA OCA SECY NRR Mail Room (EDO#G20040139)

KJohnson DLPM Div Secy AHowe DRoberts JBoska RFretz CRaynor GMeyer, RGN-l BRIEFING PACKAGE FOR MARCH 15, 2004 DROP-IN VISIT BY PUBLIC SERVICE ENTERPRISE GROUP (PSEG)PSEG NUCLEAR, LLC th*py REST 0 HOPE CREEK GENERATING STATION AND SALEM NUCLEAR GENERATING STATION, UNIT NOS. 1 AND 2 Visitinq Officials E. James Ferland Chairman, President and Chief Executive Officer Public Service Enterprise Group Incorporated Frank Cassidy President and Chief Operating Officer PSEG Power LLC Drop In Visit Schedule 9:30 a.m. Chairman Diaz 11:00 a.m. Commissioner McGaffigan 9FUiAL USE ONLY I;DINTENTSl AGENDA 1A MANAGEMENT DATA Facility Organization

.Biographical Data of Principal Managers Current Issues ....7.8.6 HOPE CREEK DATA AND PERFORMANCE Facility Data .........3 Reactor Oversight Process Info ....5 Current Issues (Plant-Specific)

...6 SALEM DATA AND PERFORMANCE Facility Data .........3 Reactor Oversight Process Info ......5 Current Issues (Plant-Specific)

......6 TAB 1A Dron-In Visit Aaenda March 15, 2004 ITINERARY TIME PERSON VISITED CONTACT PERSON EXTIENSION 9:30 a.m. Chairman Diaz Gary Holahan 301-415-1750 11:00 a.m. Commissioner McGaffigan James Beall 301-415-1810 VISITORS REPRESENTING HOPE CREEK GENERATING STATION SALEM NUCLEAR GENERATING STATION, UNIT NOS. I AND 2* E. James Ferland, Chairman, President and Chief Executive Office, Public Service Enterprise Group Incorporated (PSEG)* Frank Cassidy, President and Chief Operating Officer, PSEG Power LLC TOPIC OF DISCUSSION

  • PSEG's response to the NRC's January 28, 2004, letter concerning interim results of an ongoing special review of the work environment at Salem and Hope Creek. The letter outlined areas of NRC concerns, particularly as they relate to the handling of emergent equipment issues and associated operational decision-making.

PrFX~~ L TAB 7 Public Service Enterprise Group (PSEG)Organization PSEG Nuclear. LLC Organization

_I~ SE(G Preitdent and Cbhict Nuceair Officer--l I.4m,%s m.I LScnin~r N ice Peremient Nl,,c car Operatinrn (

  • I _l Dlirectoer IRusitwl, Stilpiprl Vice PrcsidVn(Nuleair Aswstsment Joloi Cwt:1i1;, .IIl V ice Presidlent l Site O}perationl M414)"ilol/j,.i

'iv i Predent Enrifncrring and Technical'Support DavidF: Gurtchow>

TAB 8 Biographical Data of Principal Managers E. James Ferland Chairman, President and Chief Executive Officer Public Service Enterprise Group Incorporated Chairman and Chief Executive Officer Public Service Electric and Gas Company Chairman and Chief Executive Officer PSEG Energy Holdings LLC E. James Ferland became chairman of the board, president and chief executive officer of Public Service Enterprise Group Incorporated (PSEG) on July 1, 1986. He has also been chairman and chief executive officer of PSEG's principal subsidiary, Public Service Electric and Gas Company (PSE&G), since that time and served as its president until September 1'91. In addition, he became chairman and chief executive officer of PSEG Energy Holdings LLC, parent of the corporation's diversified businesses, in July 1989. Prior to joining PSEG in 1986, he had been president and chief operating officer of Northeast Utilities.

Mr. Ferland graduated from the University of Maine in 1964 with a B.S. degree in mechanical engineering.

He earned an MBA from the University of New Haven in 1976, and also completed the Harvard Graduate School of Business Administration's Program for Management Development.

Mr. Ferland began his business career in 1964 as an engineer with The Hartford Electric Light Company, a Northeast Utilities subsidiary in Connecticut.

In 1967, he joined the initial operating staff of the Millstone Nuclear Power Station and became station superintendent in 1976. In 1978, he became director -rate regulatory project at Northeast's corporate headquarters.

He was named executive vice president and chief financial officer in 1980, and president and chief operating officer in 1983. He also served as a director of Northeast subsidiary companies and was a director of Vermont Yankee Nuclear Power Corporation, Yankee Atomic Electric Company, and Maine Yankee Atomic Power Company.Currently, Mr. Ferland is a board member of the Committee for Economic Development and the New Jersey Performing Arts Center. He is a former chairman of New Jersey State Chamber of Commerce, the Metro Newark Chamber of Commerce, the Public Affairs ResearcI Institute of New Jersey, the Institute of Nuclear Power Operations and the Electric Power Research Institute.

He is a former board member of the Edison Electric Institute, the American Gas Association, the Association of Edison Illuminating Companies, the New Jersey Utilities Association, the United Way of Tri-State, The HSB Group, Inc., Foster Wheeler CDrporation, and the Nuclear Energy Institute.

Frank Cassidy President and Chief Operating Officer PSEG Power LLC Frank Cassidy became president and chief operating officer of; RSEG Power LLC on June 15, 1999. Prior to his appointment, Mr. Cassidy was president and chief executive officer of PSEG Energy Technologies, effective January 1, 1997. He had been senior vice president

-fossil generation of Public Service Electric and Gas Company (PSE&G) since February 1995, and vice president

-transmission systems since November 1989.Mr. Cassidy joined PSE&G in 1969 and has held various posts of increasing responsibility.

He served as general manager -corporate performance and then as general manager -transmission before his election as a vice president.

He has served as PSE&G's representative on the Pennsylvania-New Jersey-Maryland Interconnection's Management Committee and Mid-Atlantic Area Council. He has testified frequently before the New Jersey Board of Public Utilities, the Federal Energy Regulatory Commission, and the United States Senate.Mr. Cassidy graduated from the New Jersey Institute of Technology with a bachelor's degree in electrical engineering and holds a master's degree in business administration from Rutgers University.

In 1988, he completed the Harvard Graduate School of Business Administration's Program for Management Development.

He serves on the United States Environmental Protection Agency's Clean Air Act Advisory Committee, and on the boards of the Center for Clean Air Policy, the Northeast States Clean Air Foundation, the Association of Edison Illuminating Companies, and the Electric Power Supply Association.

Roy A. Anderson President and Chief Nuclear Officer PSEG Nuclear, LLC Roy A. Anderson was appointed President and Chief Nuclear Officer of PSEG Nuclear, LLC, on March 31, 2003.Mr. Anderson brings many years of organizational and operational experience in the power industry.

His experience ranges from serving in the U.S. Naval Nuclear Prototype Program, to operations of the supply system for Florida Power Corporation, which included power marketing coal, oil, gas, and nuclear production at nine nuclear power plants including Pilgrim, Brunswick, and Crystal River, as well as the six Nuclear Management Corporation (NMC) plants in Wisconsin, Minnesota, Michigan, and Iowa.Mr. Anderson held executive positions with NMC, Florida Power Corporation, CP&L, Boston Edison, and General Electric before joining PSEG Nuclear.Mr. Anderson has a bachelor's degree in marine and nuclear engineering from State University of New York, and a master's in business administration from Rensselaer Polytechnic Institute.

He has attended GE's General Management School and the U.S. Navy's Commanding Officer School, Naval Reactors.

TAB 6 Current Issues TOPICS COMMON TO PSEG NUCLEAR. LLC A. EXPECTED DISCUSSION TOPICS PSEG's Response to NRC Letter on Safety Conscious Work Environment In a January 28, 2004 letter, the NRC provided interim results of an ongoing special review of the work environment at Salem and Hope Creek. The letter outlined areas of NRC concerns, particularly as they relate to the handling of emergent equipment issues and associated operational decision-making.

The letter also requested a written response to provide a plan for an in-depth PSEG assessment of the work environment.

The NRC has received PSEG's response, and we are reviewing the licensee's plans. Region I will be discussing this matter with PSEG at a management meeting planned for March 18, 2004.Messrs. Ferland and Cassidy are expected to discuss the actions PSEG will take in response to the NRC's work environment concerns.

On February 27, 2004, PSEG provided its reply to our January 28th letter. Among the actions identified in the letter, PSEG has established an Independent Assessment Team (IAT). The licensee stated that the IAT's actions vill include: (1) a thorough assessment of the work environment at Salem and Hope Creek; (2) a review of PSEG management's initiatives and efforts to enhance the work environment; (3) a review of the corporate-site interface; and (4) recommendations to senior management.

The IAT is being led by James O'Hanlon, most recently President and Chief Operating Officer of Dominion Energy, and previously the Chief Nuclear Officer at Dominion.

PSEG has also retained former-NRC and industry executives, including former Executive Director for Operations, Joseph Callan, to review plans, results and recommendations coming from the IAT.Furthermore, PSEG will be using informat on from a comprehensive survey conducted by Synergy in December 2003 to gain additional understanding into safety culture anc work place issues at the site. However, the results of the Synergy survey are not expected to be made public. The Utility Service Alliance (USA) has also conducted a safety culture assessment, and the results of the USA assessment are expected in March.B. OTHER TOPICS OF INTEREST Problem Identification and Resolution As discussed in previous annual and mid-cycle assessment letters, the NRC staff identified a substantive cross-cutting issue in the area of problem identification and resolution (PI&R). The cross-cutting issue involved instances of ineffective, untimely problem evaluations and corrective actions. In the most recent annual assessment letters, each dated March 3, 2004, the staff concluded that this substantive cross-cutting issue should remain open, based on the numerous inspection findings which indicate that weaknesses continue in this area. The weaknesses impacted equipment reliability and involved deficient problem identification, or once identified, insufficient recognition of the problem's significance.

,OLALME-ONOY Labor/Management Issues There are no current labor (union) and management contractual issues of significance.

Independent Spent Fuel Storage Installation (ISFSI)PSEG met with the NRC staff in Region I on June 19, 2003, to discuss its plans to construct an ISFSI at Artificial Island. PSEG will utilize the general licensing provisions of 10 CFR Part 72 to construct the ISFSI at its abandoned Hope Creek, Unit No. 2, cooling tower site. The ISFSI will serve both Salem and Hope Creek. PSEG has tentatively selected Holtec Internat onal as its dry cask storage system vendor for the first four campaigns (four casks each). Construction is expected to begin in 2004, and the first fuel loading campaign is planned for the 3rd quarter of 2006 (Hope Creek). Hope Creek, Salem Unit No. 1, and Salem. Unit No. 2 are projected to lose, the capability to completely offload their cores into the current spent fuel pools in 2007, 2011, and 2015, respectively.

License Renewal Activities In a letter to the NRC dated March 20, 2000, PSEG provided notification that it intends to investigate the submittal of an application to renew the operating license for Hope Creek and Salem. Contingent on the satisfactory conclusion of an assessment that license renewal is in the best interests of the company and its stakeholders, PSEG anticipates that the application would be submitted in 2007. The current licenses for Hope Creek, Salem Unit No. 1, and Salem Unit No. 2 expire on April 11, 2026, August 13, 2016, and April 18, 2020, respectively.

Open Allegations There are currently a total of 7 open allegations at Hope Creek and Salem. Two of these allegations involve both sites. In particular, one allegation pertains to a number of far-reaching safety concerns at Artificial Island. This allegation has received considerable attention and personal involvement from Region I senior management.

Open Investigations Open investigations associated with both sites are related to the open allegations dentified above.Congressional Interest Senator Tom Carper (D-DE) and Congressman Frank LoBiondo (R-NJ) have expressed a continuing interest in significant issues related to Hope Creek and Salem. The staff could expect to see further inquiry from the Senator and Congressman into the NRC's ongoing special review of work environment issues at Artificial Island.Selected News Articles Various industry journals and local newspapers have noted the NRC's January 28, 2004, letter to PSEG on work environment issues at Hope Creek and Salem. News stories have included excerpts from our letter to PSEG, as well as provided responses from public stakeholders Norm Cohen, UNPLUG Salem Campaign and David Lochbaum, Union of Concerned Scientists.

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TAB 3 Facility Data HOPE CREEK GENERATING STATION Utility: PSEG Nuclear LLC Location:

Hancocks Bridge, New Jersey County: Salem County, New Jersey Docket No.: License No.: Full Power License: Commercial Operation:

OL Expiration Date: NSSS Vendor: Reactor Type: Containment Type: Power Level (MWt): Power Level (MWe gross): 50-354 NPF-57 07/25/1986 1 2/20/1986 04/11/2026 General Electric BWR-4 Mark I 3339 1133 TAB 5 Reactor Oversight Process Info HOPE CREEK GENERATING STATION ROP PERFORMANCE STATUS Overall, Hope Creek operated in a manner that preserved public health and safety, and fully met all cornerstone objectives.

Plant performance for the most recent quarter at Hope Creek was within the Licensee Response Column of the NRC's Action Matrix, based on all inspection findings being classified as having very low safety significance (Green) and all performance indicators (Pls) being Green. However, the significance of a finding on the service water traveling screens is still under review as part of the Significance Determination Process.As discussed in the annual assessment letter dated March 3, 2003, and the mid-cycle assessment letter dated August 27, 2003, the NRC staff identified a substantive cross-cutting issue in the area of PI&R. The cross-cutting issue involved instances of ineffective, untimely problem evaluations and corrective actions. In the most recent annual assessmentl, the staff concluded that this substantive cross-cutting issue should remain open, based on the numerous inspection findings which indicate that weaknesses continue in this area. The weaknesses impacted equipment reliability and involved deficient problem identification, or once identified, insufficient recognition of the problem's significance.

For example, inspection findings included inadequate evaluations of conditions, such as a hydraulic leak on a turbine valve, which resulted in a manual reactor scram; a pressure transient during a reactor shutdown, which enabled a second pressure transient; and a coolant leak on an emergency diesel generator (EDG), which resulted in the initiation of a plant shutdown.

9qFk>VUSEV TAB 6 Current Plant-Soecific Issues HOPE CREEK NUCLEAR GENERATING STATION A. EXPECTED DISCUSSION TOPICS There are no expected discussion topics specific to Hope Creek.B. OTHER TOPICS OF INTEREST Extended Power Uprate In 2004, Hope Creek is expected to apply for an extended power uprate of approximately 15%.A major challenge of this increase is that the licensee also intends to change from S3VEA 96+fuel to GE14 fuel over the next three refueling outages. This change in core composition is planned to be done concurrently with the implementation of the power uprate. Ana yzing a power uprate for a core with a mix of fuel types is more difficult.

Escalated Enforcement.

Non-Green Findings and Non-Green Performance Indicators There has been no escalated enforcement nor the identification of any non-Green findings or PIs within the last year. Region I is currently reviewing the significance of a recent finding on the service water traveling screens.Open Allegations There are currently 5 open allegations associated specifically with Hope Creek. The allegations involve a number of wide-ranging issues at the site.Open Investigations Open investigations associated with Hope Creek are related to the open allegations identified above.Congressional Interest None Harassment and Intimidation Issues None 2.206 Petitions There are currently no 2.206 petitions being evaluated.

KECALUSEDWNY Significant Reportable Events Manual Scram Following Invalid Containment Isolation Signal On January 12, 2004, the Hope Creek reactor was manually scrammed following an invalid containment isolation signal on Reactor Building High-High Radiation.

The invalid signal was caused by the combination of a scheduled sensor calibration on channel 'C', coincident with an emergent failure on channel 'A.' This combination of trip signals made up the two cut of three trip logic for the Reactor Building High-Higih Radiation containment isolation signal. While recovering from the spurious isolation signal, the operating crew observed two of the inboard main steam isolation valves drifting closed from a loss of pneumatic pressure as a result of the isolation signal. In response to this condition, the operating crew manually scrammed the reactor. The plant responded to the manual scram as expected and the unit was returned to power operations on January 17, 2004.

HMXAEtJ$E9ULY TAB 3 Facility Data SALEM NUCLEAR GENERATING STATION. UNIT NOS. I AND 2 Utility: Location: County: PSEG Nuclear, LLC Hancocks Bridge, New Jersey Salem County, New Jersey Docket No.: License No.: Full Power License: Commercial Operation:

OL Expiration Date: NSSS Vendor: Reactor Type: Power Level (MWt): Power Level (MWe gross): Unit No. 1 50-272 DPR-70 12/01/76 06/30/77 08/13/16 Westinghouse PWR 3459 1122 Unit No. 2 50-311 DPR-75 05/20/81 10/13/81 04/18/20 Westinghouse PWR 3459 1122 TAB 5 Reactor Oversight Process Info SALEM NUCLEAR GENERATING STATION, UNIT NOS. I AND 2 ROP PERFORMANCE STATUS Overall, Salem Unit Nos. 1 and 2 operated in a manner that preserved public health and safety and fully met all cornerstone objectives.

Plant performance for the most recent quarter at Salem, Unit No. 1, was within the Regulatory Response Column of the NRC's Action Matrix, based on an inspection finding in the Mitigating System Cornerstone being classified as having low to moderate significance (White) and all PIs being Green. The White inspection finding involved inadequate corrective actions to prevent the recurrence of EDG turbocharger failures, which resulted in the 1C EDG turbocharger failure in September 2002. In a follow-up inspection report dated January 30, 2004, the NRC staff kept this White finding open until additional inspections confirm that final corrective actions have been implemented.

Plant performance for the most recent quarter at Salem, Unit No. 2, was within the Licensee Response Column of the NRC's Action Matrix, based on all inspection findings being classified as having very low safety significance (Green) and all PIs being Green.As discussed in the annual assessment letter dated March 3, 2003, and the mid-cycle assessment letter dated August 27, 2003, the NRC staff identified a substantive cross-cutting issue in the area of PI&R. The cross-cutt ng issue involved instances of ineffective, untimely problem evaluations and corrective actions. In the most recent annual assessment, the staff concluded that this substantive cross-cutting issue should remain open, based on the numerous inspection findings which indicate that weaknesses continue in this area. The weaknesses impacted equipment reliability and involved deficient problem identification, or once identified, insufficient recognition of the problem's significance.

For example, inspection findings included the deferred fuse uprating of control drive mechanisms, which resulted in dropping of control rods and a manual Unit No. 2 reactor trip; an inadequate operability evaluation of offsite power supply breakers following a Unit No. 1 partial loss of offsite power; insufficient evaluation of an air leak on an EDG starting air compressor; and incomplete preventive maintenance and inadequate corrective actions for the control air system.

TAB 6 Current Plant-Specific Issues SALEM NUCLEAR GENERATING STATION. UNIT NOS. I AND 2 A. EXPECTED DISCUSSION TOPICS There are no expected discussion topics specific to Salem Nuclear Generating Station.B. OTHER TOPICS OF INTEREST Escalated Enforcement.

Non-Green Findings and Non-Green Performance Indicators Salem, Unit No. 1, received a White Finding on May 1, 2003, as a result of multiple failures associated with Salem's EDG turbocharger compressor blades. The White Finding cited a number of instances where PSEG failed to perform the necessary non-destructive examinations or monitor vibration levels as part of corrective actions that were recommended following previous turbocharger failures.

As a result, Salem, Unit No. 1, moved to the Regulatory Response Column. In a follow-up inspection report dated January 30, 2004, the NRC staff kept this White finding open until additional inspections confirm that final corrective actions have been implemented.

Spent Fuel Pool (SFP) Leakage In September 2002, PSEG identified contaminated water leakage in the Salem, Unit No. 1, Auxiliary Building in the vicinity of the SFP. PSEG later determined that a SFP tell-tail drain system was clogged and diverting any SFP liner leaks into voids surrounding the SFP structural concrete.

SFP water eventually penetrated the fuel handling building (FHB) walls entering the auxiliary building and an annulus region around the FHB to the outside. PSEG's activities were closely coordinated with representatives from Region I and the New Jersey Department of Environmental Protection.

In February 2003, the licensee subsequently identified tritium in two shallow sample wells that were above the State of New Jersey's reporting requirement of 1000 picocuries per liter (pCi/I).The wells were in close proximity to the Salem, Unit No. 1, spent fuel building, and within the plant's restricted area. PSEG promptly reported this discovery to State officials, and also notified the Commission on the same day of "a spill of radioactive material, specifically tritium," in accordance with NRC regulations (Event Report 39655). As of this date, PSEG has not identified any tritium in sample wells outside the plant's restricted area.PSEG has retained a number of industry and academic experts to assist site personnel in identifying the source of the tritium and to assist with further corrective actions, as necessary.

Regional inspectors recently completed a follow-up inspection of PSEG's actions to date.Generally, the inspectors were satisfied with the actions PSEG has taken since the discovery of the SFP leak and tritium in sample wells. However, the inspectors also noted findi'igs related to PSEG's performance prior to the original discovery of contamination near the SFP Open Allegations There are currently no open allegations specifically associated with Salem.Open Investigations There are currently no open investigations specifically associated with Salem.Harassment and Intimidation Issues None 2.206 Petitions There are currently no 2.206 petitions being evaluated.

Congressional Interest Senator Tom Carper (D-DE) expressed an interest in the Salem, Unit No. 1, SFP leak following former Chairman Meserve's testimony before the Senate Environment and Public Works Committee's Subcommittee on Clean Air, Climate Change, and Nuclear Safety on February 13, 2003. Senator Carper requested information regarding PSEG's notification of the 'SFP and tritium leaks at Salem to the NRC. The NRC provided this information on May 21, 2003 (ADAMS Accession No. ML031430503), tc Senator Carper.Significant Reportable Events The following is a summary of a recent significant reportable event for Salem: Manual Reactor Trip On November 22, 2003, while withdrawing control rod banks in preparation for the startup of Salem, Unit No. 2, control room operators observed that rod 2D5 did not move during routine physics testing. Technicians determined a blown power supply fuse had caused the rod to be immovable.

Further troubleshooting did not identify related circuit problems and P'SEG concluded that the fuse had failed during the beginning of its useful life, i.e., "infant mortality." PSEG resumed control rod withdrawals and physics testing on November 22 at 10:13 p.m. At 5:04 a.m. on November 23, control rod 1 D4 dropped. Control room operators manually tripped the Unit No. 2 reactor at 5:19 a.m. in response to the abnormal control rod configuration during physics startup testing. The reactor trip was uneventful.

PSEG further investigated the control rod drops and determined that certain fuses did not have adequate margin to prevent failure during maximum peaking current periods. PSEG also concluded that a complete control rod fuse replacement during the recent outage may have introduced fuses that were more responsive than expected.Inspectors identified that there was a performance deficiency associated with the control rod drops due to untimely corrective actions.

ofJALUMLY~

-ATTACHMENT I TO BRIEFING PACKAGE NRC LETTER TO PUBLIC SERVICE ENTERPRISE GROUP DATED JANUARY 28, 2004 ATTACHMENT 2 TO BRIEFING PACKAGE PUBLIC SERVICE ENTERPRISE GROUP LETTER DATED FE BRUARY 27, 2004