ML20197D899

Responds to FOIA Request for Five Categories of Records Re South Texas Project.Forwards Documents Listed on App

ML20197D899
Person / Time
Site:	South Texas
Issue date:	05/08/1986
From:	Grimsley D NRC OFFICE OF ADMINISTRATION (ADM)
To:	Hamlin J SHAW, PITTMAN, POTTS & TROWBRIDGE
References
FOIA-86-311 NUDOCS 8605150091
Download: ML20197D899 (12)

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SHAw PITTMANe PoTTs & TROWBRIDGE e  !

A Pantest RS***P OF PmOFESS80*eAL ComPOmATeONS 1800 se STRECT. N. W.

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~...eTmA#es September 30, 1983

. TE m S D.-CT OeA-.E m FREEOOM y mm (202r 822-1127 ACT REQUEST Assistant Attorney General

[d ,jg Office of Legal Policy g [ 5'3 u - --e Department of Justice m Washington, D.C. 20530 Ee 5 C Re: Freedom of Information Act -

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1. Request c. ,. - m

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Dear Sir:

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g w Pursuant to the Freedom of Information Act, 5 U.S.C. S 552, and 28 C.F.R. Part 16, I hereby request copies of all records re-lating to (1) the South Texas Project Nuclear Electric Generating Station ("STP"); (2) Houston Lighting & Power Company in connection with its ownership of STP; and (3) Brown & Root, Inc. in connection with its design and construction of STP. This request encompasses, but is not limited to, (1) all records of meetings, correspondence, notec and memoranda relating in any way to STP between the DOJ and

the Nuclear Regulatory Connmission ("NRC") including NRC Region IV; (2) all internal DOJ memoranda and communications discussing or re-i lating to STP and associated actions taken in connection with it; (3) all records to and from any member of Congress or congressional body relating to STP and associated reports, testimony and notes; (4) all records to and from any Texas state or local public official; and (5) all records leading up to, arising out of, or in any way pertaining to a 1979 FJI iaarestigation at STP. To assist in your

, search, I am enclosing copies of pertinent records that we have I

already obtained from other sources.

8605150091 860508 hLI -311 PDR $ 7g

SHAw, PITTMAN. PoTTs & TROWBRIDGE

. .m . o, ors % co o. no . ,

Assistant Attorney General September 30, 1983 Page Two I believe that records responsive to this request may be located in the Crimina.L Division, the Office gl I,egislative Affairs and other units within the Department of Justice; in theJBI, including its Houston Field Office; and in the office -

of the United States, Attorney for the Southern District of Texas.

I hereby agree to pay the prescribed fees for locating and copying the records sought by this request.

Please call me if you have any questions about this request.

Sincerely, -

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Ja es' . amlin JBH:kh cc: (w/ enclosures)-- -

Jeffery Ross 2- Chief, FOIA/PA Unit Department of Justice FBI FOIA Section Washington, D.C.

FBI Houston, Texas to United States Attorney Houston, Texas

. OCT 2 01980

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Mi 7Jacies J. Graham .- - -

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f. Enclosed. in Vesponse to your office's request, is the Report of Investi  :. ..

gation into allegations of (1) intimidation of quality control inspectors -

and (2) altered or falsified quality control doctmentation at the South ' -

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Texas under aNuclear constfuction Project permit (STNP)iss~ued by the Nuclear Regulatory Cocnission to the Houston Lighting and Power Company who is the managing partner of the project which also involves investments of several Texas cities.

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Although we initiated'an investigation into this matter in order'to: . T. . '  :

, comply with your, request we wish to advise you that a copy of the' enclosed .. .

report is also being sent to the House Subcocmittee on Oversight and ' . ." -

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. . , Investigations chaired by Congressman Eckhardt. This is not our nonnal.;., 2 .;

,. procedure, however, due to a specific request from the described sub

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.. ,NRC feels,Iit is essentisl.that the infonnation be . furnished in order to.GS.'. a;/ .

N 'Vass st i in resolving health and safety questions concerning this facility.gf 3:-de-

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• '..?f.. , history of the STNP and' determining whether op not there thi report'sisu;ld as'sist yoE in' reviewing some of the'-2:E ;

- are matters  :.$

. ' which require additionai . effort-by your department. If'fou have any : :::-bd,'Q". .

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.. questions; please contact Roger Fortuna Assistant Director for Investigations :

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.. ,.or John R. Sincl.- .air of his staff on (301)-492-7170. . ...- .

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FEDER AL BUREAU OF INVESTIC ATION in a.piy. rt s* Na a,f.c . 6015 Federal Building -

515 Rusk Avenue '

Houston, Texas 77002 October 10, 1979

Mr. James Cummings .

Office of Inspector and Auditor Nuclear Regulatory Commission Washington, D.C. 20555

Dear Sir:

Enclosed is one copy of our investigation of alleged improprieties at the South Texas Nuclear Project. __

Very truly yours, Homer R. Hauer Special Agent in Charge O

By: wIk Russell E. Brown

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December 4, 1979 7 Mr. Leonard Bickwit General Counsel .

Kuclear Regulatory Commission - -

1717 H Street N.W.

Washington, D.C. 20555 Re: Matter of South Texas Nuclear

- Proj ect, Matagorda County, Texas

Dear F.:

. 3ickwit:

Prosecution was declined ,in th'e above-named matter _

" on recocnendation of the F.B.I. in that they found no substantive violations. .

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Esclosed for your consideration are the F.B.I.

reports which resulted from their investigation.

Yours.truly, 5 j

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. Mr. Roger Fortuna Assistant Director for Investigations Office of Inspector and Auditor ,

U.S. Nuclear Regulatory , Commission 1200 Landow Building Washington, D.C. 20555 -

Dear Mr. Fortuna:

Enclosed please find a copy of a letter dated

. April 5, 1979, from Congressman Henry B. Gonzalez containing allegations of possible violations in -

connection with the construction 'of the South Texas Nuclear Project, Bay City, Texas. A copy of our response is also enclosed for your information.

In the event your office pursues .an administrative inquiry in this matter, and evidence of possib.le N

violations of the Federal criminal statutes is developed, we would appreciate being advised.

Sincerely,

' Richard W. Beckler

' Acting Chief, Fraud Section Criminal Division

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ames J. Graham Attorn y Enclosures i

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Honorable Henry B. Gonzalez

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House of Representatives Washington, D.C. 20515

Dear Congressman Gonzale?.:

Your letter of April 5, 1979, concerning allegations '

of possible fraudulent activity in connection with the .

construction of the South Texas Nuclear Project at B4y City, Texas, has been referred to the Criminal Division l

. for response.

To insure the integrity of its operations, the ,

Nuclear Regulatory Commission conducts investigations _,

and then, if the facts warrant, refers appropriate cases _

to the Department,of Justice. I have taken the liberty of forwarding your letter to the Office of Inspector and Auditor of the Nuclear Regulatory Commission for appro-priate action. In the event an administrative inquiry is

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initiated by the Comission and evidence of possible Federal violations is developed, we would expect to be advised.

2 Your interest in writing and bringing this matter to our attention is appreciated. ,

c: Rober Fortuna, NRC e yy s,

,i Philip B. Heymann Assistant Attorney General

, Criminal Division

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l - John C. Keency .

l Deputy Assistant Attorney General Criminal Division I .

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-. r. A8:lgi l The Honorab'le Griffin B. Bell -

l The Attorney General -

Department of Justice Washington, D. C. 20530

Dear General Bell:

The San Antonio City Public Service Board is a 28 per

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bent owner of the South Texas Nuclear Pr'oject, a 2,500 mega-watt plant now under construction at Bay City, Texas. The-ultimate cost of this project will probably exceed $2 billion.

As you are aware, the Nuclear Regulatory Commission sets exceedingly high standards for safety and requires stringent controls on the quality of materials and structures. At the same time, the immense cost of such projects is a constant in-e vitation to evade quality standards-and to get the job complete on time and within cost projections. This sets up a strong con flict between quality controls and economic considerations. , ,

I have received reports that inspectors at the South Texas Nuclear Project have been subject to various kinds of harassmen -

and intimidation. One construction employee, a concrete forema:

by the name of Hinds, was killed in a strange, apparent burglar :

attempt at a beach house not far from the site. The person who shot him was no-billed, it ,being alleged that Hinds was in the act of committing a burglary. An inspector named Perry claims to have been fired for insisting that safety standards in his section be met. Another, named Swayze, claims in a lawsuit tha he was fired for overzealous inspections. Other-less specific allegations have been reported to me, indicating that inspectio documents have been falsified and that inspector initials have been forged.

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APR 101979 11! APR 9 197c

,s, CRIMINAL DIVIS10N , _ _ ,

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Th'c Honj Griffin B. Bell

,Page April 5, 1979

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I have not had an opportunity to obtain detailed in-

- formation on these matters. However, should these allegations be true, it would indicate that an attempt has been made to defraud the Nuclear Regulatory Commission, which I judge would be a criminal action against the Government. If, indeed, there is cause to believe that such an effort has been made, I request that you act at once to investigate fully and bring action again:

the responsiale persons.

With best wishes, I am Sincerelyvfurs, 4

HenryjB. Gonzalez Member of Congress -

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April 23, 1979

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The Honorable Griffin B. Bell The Attorney General .

Department of Justice 7,.

Washington, D. C. 20530 -

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ATTENTION: Philip B. *Heymann ,

, Assistant Attorney General- ~

Dear Mr. Heymann:

I appreciated your response to my April 5 letter.

I addressed the Department of Justice because there seems ample reason to believe that the inspection and safety program of the Nuclear Regulatory Commission lacks f reasonable integrity. The conmission did investicate certain allegations of altered inspection documents at the -South Texas Nuclear Project and found that changes in these documents had, in fact, been made. It was explained, however, that the papers were " smudged" and the changes that had been made were intended to make the items readabl.e.

Such an explanation is not very reassuring, coming as it does from an agency that has no experience in the area of ques-tioned documents. It would be logical in a case of questioned documents to ask investigative people to study the materials and the evidence and then to decide whether the documents are authen l; tic or not, and if not, why not. The Commission is likely to be satisfied with its own explanation, but it should not be expecte to cuestion its own reviews.

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than the highest ahievable standards of de' sign and construc' nr ything that compromises the inspect .pd sys.'W hnav' = 1:

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The Attorney eneral 6ttn: Philip B. Heymann~

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this; and the Nuclear Regulatory Commission should not be expected to question its own reviews. Independent investi-gation is a logical step to t.ake, and it should be done.

S'ncerely yo. s, h)He[LUJ NilY

B. Gonza' Member of Congress 1 .

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. Iionorable Henry B. Gon= ale 7 f- 5 * /

Iiouse of Representativas Ucshington, D.C. 20515

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i Dwar Ccusressern Gensc2.c= :

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. "Etis vill acknowledge reccipt of your letter dated .

, April 23, 1979, concer=ing your earlier request for en

- investigation into the construction of the South Tezas I l Kuclear Power Project at Bay' City, Texas.  !

!, As is our normal policy, the Office of Ic.spector

! and Auditer of the Unclear Pagulatory Cecr_iscica was requested to conduct a prefit-inary inquiry into the allegacions ad report back to the Crin'nal Divisica-

, the results of' ther inquiry. Our action tras predicated --

i on cavaral factors including the CW cait,n's erpertise in toch-dcal aspects related to investigations such as this cac. Ihs Crininal Division iham a great dual of confideace in the Cor.c isnion's Office o'f Inspector and Auditor staff, and we hava no reason to belicyc that anything but an j ebjecti.re lavastigation vill be cenducted. Your concerns

. _ . ralstiva to their erperience in the nres of questiound b j: doctrants ca7 he valid, hmtever, I m confidenc that the j invastigat.iva acaff vill requcse our assistanen in this

,; chase of chair inquiry. if appropriate.

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ll Please be assured that we intend to carefully l : scrutini=a the results of the prel4*.ary inquiry conducted

'~j by the Iiuclear Regulatory Co.c'.issien upon its co.q1stion. -

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Verf truly yours,

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Philip 3. Eeyenna Ascistant Attorney Cencrcl .

, .. '.. . Crininal Livision

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I cc:

Roger Fortuna b,',

8 Assistant Director for :nvestigations Office of Inspector and Xudit6r,. , g- a U. S . Nuclear Regula tory Coi.mssi,n.q~ .

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W 1 .; V: s - r March 31,1981 .

Mr. Julian Greenspun Deputy Chief for Litigation Criminal Division U.S. Department of Justice Washington, D.C. 20530 .

Dear Julian:

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RE: South Texas Nuclear Project -

I am returning to you the Department of Justice letters addressed 4 Messrs. Jordan and Feeham. Per.our conversation of this -

morning it is g understanding thac the DOJ will deliver these ,

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letters by certified mail.

Sincerely.

Eiginal signed liy James J. Omings James J. Cumings, Director Office of Inspector and Auditor

Enclosures:

u Ltrs to Jordan & Feeham 1 i '. F'C '

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Distribution

• OIA File

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~' U)kJTED STATES DEPART.k1ENT OF jbbh!CE w

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. W A SIiINGTON.,D.C. 20330 Addres neuer es ehe Di.w I d d d age i. I m ..d L h. .

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MAR 26198.1 i Mr. James Cummings, Director '

Office of Inspector and Auditor  :

United States Nuclear Regulatory Commission .

Washington, D.C., .

Re: South Texas Nuclear Project

Dear Mr. Cummings:

I have been in communication with John Sinclair of your office _,

concerning violationis of 18 USC 1001 allegedly committed by various employees at the South Texas Nuclear Project. I understand that over a period of the last 3 years there have been numerous allegations of deficiencies in the Quality Assurance Program at the South Texas Nuclear Proj ect. Thus f ar, investigation has revealed quality assurance falsi- '

fication by lower level supervisory employees who do not represent appropriate targets for criminal prosecution. Their actions'are merely symptomatic of an overall pattern of neglect on the part of Brown and 3

Root, the r' bcontractor, and Houston Light and Power, the licensee.

Accordingly, I have requested that Mr. Sinclair continue to review investigation reports concerning allegations of misconduct at South Texas Nuclear Project and to refer to this Section any cases which in-

. volve something more than an individual inspector failing to conduct a single inspection.

I ' have enclosed sealed letters addressed to the Presidents of Houston Light and Power and Brown and Root (a carbon copy of each is attached for

=> your records) . I request that you forward the sealed letters to NRC employees in Regica 4 for personal delivery to Mr. Jordan and Mr. Feeham.

l j' I also request that the individual who delivers the letters send me jj- written acknowledgement of such act.

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- .I appreciate your cooperation in this regar and would appreciate being apprised of future investigative efforts concerning the South Texas Nuclear Project. .

Very truly yours, LAWRENCE LIPPE, Chief General Litigation and, Legal' Advice Section Criminal Division S y . 2. . ',

KAREN A. MORRISSETTE, Attorney General Litigation and Legal Advice Sect P.O. Box 887 - Ben Franklin Station Washington DC 20044 Enclosures e

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V C h, UNIT.* STATES DEPARTM ENT C JUSTICE

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1. 1 ASHINCTON, D.C 20130 Adde semer asab.

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MAR 26198.1 Mr. D.D. Jordan -

. President Houston. Light and Power Company

• Houston, Texas 77001 Re: South Texas Nuclear Project ,

Dear Mr. Jordan:

Information developed' by the Nuclear Regulatory ~

Cosmaission indicates that certain employees at the South Texas Nuclear Project, for which Houston Light and Power holds the construction license, have committed criminal violations of Title.18 of the United States Code, Section 1001. The evidencie indicates that these einployees cir-cumvented reporting procedures and falsified inspection g reports.

The history of deficiencies in the Quality Assurance Program at.the South Texas Nuclear Project also indicates that the, actions of these employees are merely symptomatic of an overall pattern of neglect on the part of Housten -

Light and Power a's licensee, and Brown and Root as sub-contractor. Accordingly, this letter constitutes notice to you that we will consider future recurrences of fa1sifi-cation of or deficiencies in the Quality Assurance Program at the South Texas Nuclear Project as attributable to Houston B

cc: James Cununings, Director Office of Inspector and Auditor 4 U.S. Nuclear Regulatory Commission

1717 H Street, N.W.

Wash DC o

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Lig'ht and Power and its responsible officers. Moreover, with respect to evaluating such liability, the Department of Justice will consider only meaningful efforts on the part of Houstor Light and Power and its responsible per-sonnel to preclude the recurrence of such falsification.

Sincerely, ,

LAWRENCE LIPPE, Chief General Litigation and

.. Legal Advice Section Criminal Division By:

KAREN A. MORRISSETTE, Attorney m

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LLi m : 3== -MAR ~2 6198)

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Mr. J.W. Feeham President Brown and Root

• Houston, Texas 77001 Re: South Texas Nuclear Project ,

Dear Mr. Feeham:

Information developed by the Nuclear Regulatory Commission indicates that certain employees at the South Texas Nuclear Project, for which Brown and Root holds the construction subcontract, have committed criminal violations of Title 18 of the United States Code, Section 1001. The evidence indicates that these employees circumvented reporting procedures and falsi-fied inspection reports.

The history of deficiencies in the Quality Assurance Program at the South Texas Nuclear Project also indicates that the actions of these employees are merely symptomatic of an overall pattern of neglect on the part of Houston Light and Power as licensee, and Brown and Root as subcontractor.

Accordingly, this letter constitutes notice to you that we

, cc: James Cummings, Director Office of Inspector and Auditor i U.S. Nuclear Regulatory Commission ' '

a 1717 H Street, N.W.

Wash DC i

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will consider future recurrences of falsification of or -

deficiencies in the Quality Assurance Program at the South Texas _ Project as attributable to Brown and Root and its responsible officers. Moreover, with respect to evaluating such liability, the Department of Justice will consider only meaningful efforts on the part of Brown and Root and its responsible personnel to pre-clude the recurrence of such falsification. .

Sincerely, ,

LAWRENCE LIPPE, Chief General Litigation and Legal Advice Section Criminal Division By:

, KAREN A'. MORRISSETTE, Attorney

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