ML20129G495

Forwards Order Requiring Independent third-party Oversight of Nene Re Corrective Actions for Design & Plant Operation Deficiencies.Nrc Concerned About Failure of Past Licensee Mgt Processes & Procedures to Safety Issues

ML20129G495
Person / Time
Site:	Millstone
Issue date:	10/24/1996
From:	Miraglia F NRC (Affiliation Not Assigned)
To:	Kenyon B NORTHEAST NUCLEAR ENERGY CO.
Shared Package
ML20129G501	List: ML20129G495 ML20129G523 ML20129G583
References
NUDOCS 9610300114
Download: ML20129G495 (6)

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October 24, 1996 Mr. Bruce D. Kenyon President and Chief Executive Officer Northeast Nuclear Energy Company P.O. Box 128 Waterford, CT 06385-0128

SUBJECT:

ORDER REQUIRING INDEPENDENT THIRD-PARTY OVER$1 Gilt OF NORTHEAST NUCLEAR ENERGY COMPANY'S IMPLEMENTATION OF RESOLUTION OF THE l MILLSTONE STATION EMPLOYEES' SAFETY CONCERNS ISSUES  !

Dear Mr. Kenyon:

Over the past several years, Northeast Nuclear Energy Company (licensee) has failed to assure compliance with regulatory requirements at the Millstone Station. The NRC's Order of August 14, 1996 establishes independent, third-party oversight of corrective actions for design and plant operation deficiencies. That Order establishing an Independent Corrective Action Verification Program (ICAVP) for Millstene facilities summarizes the licensee's failure to meet Criterion XVI of Appendix B to 10 CFR Part 50 and i other NRC requirements. j As discussed below, the NRC is also concerned about the failure of past licenses management processes and procedures to effectively handle safety issues raised by its employees and the manner in which the licensee treated employees who brought safety and other concerns to the attention of .

management. As evidenced by the large number of safety issues recently being identified at all three Millstone plants, it appears that some employees were reluctant to identify safety issues to the licensee. Failure to identify i safety concerns is of significant concern to the NRC. l Over the past several years, numerous licensee asmssments, audits, and i internal task group studies have been conducted to assess employee safety concerns programs at the Millstone Station. l In a January 29, 1996 study, the licensee completed its review of the effectiveness of its Nuclear Safety Concerns Program (NSCP). The licensee concluded that the NSCP had been, and continued to be, ineffectiva. The findings of the January 1996 report were similar to those of previous licensee assessments and studies performed since 1991.

In its July 12, 1996 report, " Report of the Fundamental Cause Assessment Team," the licensee concluded that its top-level management did not consistently exercise effective leadership or articulate and implement

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B. Kenyon i appropriate vision and direction. Its nuclear organization did not establish  ;

and maintain ht,;5 standards and expectations. Also, its nuclear organization's leadership, management, and interpersonal skills were found to be weak.

In its September 1996 report, " Millstone Independent Review Group Regarding Millstone Station and NRC Handling of Employee Concerns and Allegations," the l NRC staff determined that in general an unhealthy work environment, which did not tolerate dissenting views, and did not welcome or prom >te a questioning attitude, has existed at Millstone plants for the past several years. This '

poor environment has resulted in repeated instances of discrimination and ineffective handling of employee concerns and contributed to the Millstone l plants being placed on the NRC's " watch list" as facilities having significant weaknesses. -

Also, in its past studies, the NRC staff have noted similar problems. As a result, the NRC has conducted numerous inspections and investigations that have substantiated many of the employee concerns and allegations for which the licensee's corrective actions have proven ineffective. The NRC has cited the licensee for violations and taken escalated enforcement actions.

Notwithstanding these actions, the licensee's handling of employee safety

concerns and implementation of corrective actions for problems identified by employees remain ineffective.

1 i Therefore, the NRC is issuing the enclosed Order (Enclosure 1) directing that l prior to restart of any Millstone units, the licensee is to develop and submit to the NRC a comprehensive plan for reviewing and dispositioning safety issues raised by its employees and ensuring that employees who raise safety concerns can do so without fear of retaliation. The comprehensive plan shall address the past performance failures including those identified in the enclosed Millstone Independent Review Group report (Enclosure 2). The-Order also directs the licensee to retain an independent third-party to oversee implementation of its comprehensive plan.

The NRC anticipates that it will take some period of time to show sufficient improvement; therefore, the NRC will consider your performance with regard to  !

safety issue resolution and employee treatment as well as the continuing need i for the third party oversight within 12 to 24 months following implementation of the plan.

Sincerely, ,

f . t~

Frank ,Mira li cting Director Office of Nuclear Reactor Regulation

! Docket Nos. 50-245, 336, and 423

Enclosure:

Order cc w/ encl: See next page

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DISTRIBUTION Chairman Jackson' Comissioner Rogers Comissioner Dicus Commissioner Diaz l Commissioner McGaffigan JTaylor JMilhoan HThompson JBlaha VMcCree FMiraglia AThadani RZimerman SVarga JZwolinski MThadani i

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NMSS RES HMiller, RI WLanning, RI  ;

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T. Feigenbaum Millstone Power Station, Northeast Utilities Service Company Unit Nos. 1, 2 & 3 cc:

l Lillian M. Cuoco, Esq. Mr. P. D. Swetland, Resident l Senior Nuclear Counsel Inspector i

Northeast Utilities Service Company Millstone Nuclear Power Station J P.O. Box 270 c/o U.S. Nuclear Regulatory  :

Hartford, CT 06141-0270 Commission P.O. Box 513 l Mr. Kevin T. A. McCarthy, Director Niantic, CT 06357 Monitoring and Radiation Division Department of Environmental Mr. D. B. Miller, Jr.

Protection , Senior Vice President 79 Elm Street Nuclear Safety and Oversight Hartford, CT 06106-5127 Northeast Utilities Service Company l P.O. Box 270 Mr. Allan Johanson, Assistant Hartford, CT 06141-0270 Director Office of Policy and Management Mr. E. A. DeBarba l Policy Development and Planning Vice President - Nuclear Technical Division Services

! 80 Washington Street Northeast Utilities Service Company l

Hartford, CT 06106 P.O. Box 128 Waterford, CT 06385 l Mr. S. E. Scace, Vice President l Nuclear Reengineering Implementation Mr. F. C. Rothen i

Northeast Utilities Service Company Vice President - Nuclear Work Serv'ces P.O. Box 128 Northeast Utilities Service Compan.'

l Waterford, CT 06385 P.O. Box 128 Waterford, CT 06385 Nuclear Unit Director P. M. Richardson, Nuclear Unit Director Millstone Unit No. 1 Millstone Unit No. 2 Northeast Nuclear Energy Company Northeast Nuclear Energy Company P.O. Box 128 P.O. Box 128 Waterford, CT 06385 Waterford, CT 06385 Regional Administrator Charles Brinkhun, Manager 4

Region I Washington Nuclear Operations i U.S. Nuclear Regulatory Commission ABB Combustion Engineering .

475 Allendale Road 12300 Twinbrook Pkwy, Suite 330 King of Prussia, PA 19406 Rockville, MD 20852 i First Selectmen Town of Waterford Hall of Records ,

200 Boston Post Road Waterford, CT 06385 4

T. Feigenbaum Millstone Power Station, Northeast Utilities Service Company Unit Nos. 1, 2 & 3 cc:

M. H. Brothers, Nuclear Unit Director l Millstone Unit No. 3 .

l Northeast Nuclear Energy Company P.O. Box 128

Waterford, CT 06385 Burlington Electric Department c/o Robert E. Fletcher, Esq.

271 South Union Street Burlington, VT 05402 Mr. M. R. Scully, Executive Director Connecticut Municipal Electric Energy Cooperative 30 Stott Avenue Norwich, CT 06360 Mr. William D. Meinert Nuclear Engineer Massachusetts Municipal Wholesale Electric Company P.O. Box 426 Ludlow, MA 01056 Ernest C. Hadley, Esq.

1040 B Main Street P.O. Box 549 West Wareham, MA 02576 Mr. Bruce D. Kenyon President - Nuclear Group Northeast Utilities Service Company P. O. Box 128 Waterford, CT 06385 Joseph R. Egan, Esq.

Egan & Associates, P.C.

2300 N Street, NW Washington, D.C. 20037 1

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