IR 05000348/1996003

Informs of NRC Authorization to Exercise Enforcement Discretion & Withdraw NOV Re Insp Repts 50-348/96-03 & 50-364/96-03 on 960515.Violation Was Failure to Have in Place Criticality Monitoring Sys

ML20202D794
Person / Time
Site:	Farley
Issue date:	11/26/1997
From:	Reyes L NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II)
To:	Dennis Morey SOUTHERN NUCLEAR OPERATING CO.
References
50-348-96-03, 50-348-96-3, 50-364-96-03, 50-364-96-3, EA-97-535, NUDOCS 9712050155
Download: ML20202D794 (5)

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. r-Novembar 26, 1997 EA-97-535 Southern Nuclear Operating Company Inc.

ATTN: Mr. D. Vice President Farley Project P. O. Box 1295 Birmingham. AL 35201-1295 SUBJECT: EXERCISE OF ENFORCEMENT DISCRETION (NRC INTEGRATED INSPECTION REPORT NOS. 50-348/96-03 AND 50-364/96-03)

Dear Mr. Morey:

This refer; to the inspection at your Farley reactor facilities described in the subject Inspection Report issued on May 15, 1996. As a result of that inspection, a Notice of Violation (VIO 50-348. 364/96-03-05) was issued for your failure to meet the requirements of 10 CFR 70.24, Criticality Accident Requirements. The violation was for failure to have in place either a criticality monitoring system for storage and handling of new (non-irradiated)

fuel or an NRC approved exemption to the requirement.

10 CFR 70.24 requires that each licensee authorized to possess more than a small amount of s]ecial nuclear material (SNM) maintain in each area in which such material is landled, used, or stored a criticality monitoring system which will energize clearly audible alarm signals if accidental critkality occurs, The purpose of 10 CFR 70.24 is to ensure that, it a criticality were to occur during the handling of SNM, personnel would be alerted to that fact and would take a'p propriate action.

Most nuclear power plant licensees were granted exea]tions from 10 CFR 70,24 during the construction of their plants as part of t1e Part 70 license issued to permit the receipt of the initial core. Generally, these exemptions were not explicitly renewed when the Part 50 operating license was issued, which contained the combined Part 50 and Part 70 authority. In August 1981, the Tennessee Valley Authority (TVA), in the course of reviewing the operating licenses for its Browns Ferry facilities, noted that the exemption to 10 CFR 70.24 that had been granted during the construction phase had not been explicitly granted in the operating license. By letters dated August 11, 1981. and August 31, 1987. TVA requested an exemption from 10 CFR 70.24. On May 11, 1988. NRC informed TVA that "the previously issued exemptions are still in effect even though the specific provisions of the Part 70 licenses were not incorporated into the Part 50 license." Notwithstanding the correspondence with TVA, the NRC has determined that, in cases where a i licensee received the exemption as part of the Part 70 license issued during i the construction phase, both the Part 70 and Part 50 licenses should be examined to determine the status of the exemption. The NRC view now is that

9712050155 971126 PDR ADOCK 05000348

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SNC 2 unless a licensee's licensing basis specifies otherwise, an exemption expires with the expiration of the Part 70 license. The NRC intends to amend 10 CFR 70.24 to provide for administrative controls in lieu of criticality monitors.

Thus, as described in the inspection report, your facility was in violation of 10 CFR 70.24. Numerous other facilities have similar circumstances. The NRC has reconsidered this violation and concluded based on the information discussed above that, although a violation did exist it is appropriate to exercise enforcement discretion for Violations involving Special Circumstances in accordance with Section Vil B.6 of the " General Statement of Policy and Procedures for NRC Enforcement Actions" (Enforcement Policy). NUREG-1600. The bases for exercising this discretion a. e the lack of safety significance of the failure to meet 10 CFR 70.24: tF,e failure of the NRC staff to recognize the need for an exemption during the licensing process: the prior NRC position on this matter documented in its letter of May 11. 1988, to TVA concerning the lack of a need for an exemption for the Browns Ferry plant; and finally the NRC's intention to amend 10 CFR 70.24 through rulemaking to provide for administrative controls in lieu of criticality monitors.

Thererore. I have been authorized after consultation with the Director Office of inforcement to exercise enforcement discretion and withdraw th" Notice of Violation.

No response to this letter is required. In arcaraance with 10 CFR 2.790 of the NRC's " Rules of Practice." a copv cf Unis letter will be placed in the NRC Public Document Room (PDR).

Sincerely

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(Original signed by Luis A. Reyes)

Luis A. Reyes Regional Administrator Docket Nos. 50-348 and 50-364 License Nos. NPF-2 and NPF-8 CC:

M. J. Ajluni. Licensing Services Manager. B-031 Southern Nuclear Operating Company. Inc.

42 Inverness Center Parkway Birmingham. AL 35242 cc cont'd: (See Page 3)

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-SNC 3 Ecc: . Continued R.: D.- Hill , Jr.

General Manager, Farley Plant Southern Nuclear Operating Company, Inc.

P. O. Box 470 Ashford, AL 36312

~J. D. Woodard-Executive Vice President Southern Nuclear Operating Com P. O.pany, Inc.

Box 1295 Birmingham, AL 35201-State Health Officer Alabama Departnent of Public Health-434 Monroe Street Montgomery. AL 36130-1701-M. Stanford Blanton Balch and. Bingham Law Firm P. O. Box 306 1710 Sixth Avenue North Birmingham. AL 35201

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Chairman

' Houston County Commission P. O. Box 6406 Dothan, AL 36302 -

Distribution:

P. H. Skinner. RIl R. P. Carrion. RII W. P. Kleinsorge. RII M. E. Ernstes. RII J. I. Zimmerman. NRR J. Lieberman. OE

B. Summers OE:EA File (2 letterhead)

-PUBLIC Distribution cont'd: (See Page 4)

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SNC 4 Distribution: Continued NRC Senior Resident Inspector U.S. Nuclear Regulatory Comission 7388 N State lky 95 Colunbia. AL 36319

• SEE PREVIOUS CONCURRENCE h

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l-SNC 4-Distribution: -Continued NRC Senior Resident Inspector U.S. Nuclear Regulatory Commission 7388 N State Hwy 95 Columbia AL 36319

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