[Federal Register Volume 75, Number 229 (Tuesday, November 30, 2010)]
[Notices]
[Pages 74099-74102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30116]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 70-143; License No. SNM-124; EA-10-076; NRC-2010-0365]
In the Matter of Nuclear Fuel Services, Inc., Erwin, TN;
Confirmatory Order Modifying License (Effective Immediately)
I
Nuclear Fuel Services, Inc. (NFS or Licensee) is the holder of
Special Nuclear Materials License No. SNM-124 issued by the Nuclear
Regulatory Commission (NRC or Commission) pursuant to Title 10 of the
Code of Federal Regulations (10 CFR) part 70 on July 2, 1999. The
license authorizes the operation of the NFS facility in accordance with
the conditions specified therein. The facility is located on the
Licensee's site in Erwin, Tennessee.
This Confirmatory Order is the result of an agreement reached
during an Alternative Dispute Resolution (ADR) session conducted on
October 4, 2010.
II
On October 7, 2009, the NRC Office of Investigations (OI) began an
investigation (OI Case No. 2-2010-001) at NFS. Based on the evidence
developed during its investigation, OI substantiated that a former
Industrial Safety Specialist at NFS willfully provided the NRC
incomplete and inaccurate information concerning fire damper
inspections at NFS on two separate occasions. The results of the
investigation, completed on February 26, 2010, were sent to NFS in a
letter
[[Page 74100]]
dated July 20, 2010. The NRC's July 20, 2010, letter offered NFS the
opportunity to resolve the enforcement aspects of this matter through
the NRC's normal enforcement process, or through ADR. In response to
the NRC's offer, NFS requested use of the NRC ADR process to resolve
the matter.
On October 4, 2010, the NRC and NFS met in an ADR session mediated
by a professional mediator, arranged through Cornell University's
Institute on Conflict Resolution. ADR is a process in which a neutral
mediator with no decision-making authority assists the parties in
reaching an agreement on resolving any differences regarding the
dispute. This confirmatory order is issued pursuant to the agreement
reached during the ADR process.
III
During the ADR session, a preliminary settlement agreement was
reached. The elements of the agreement consisted of the following:
1. NFS agreed that two examples of a violation of 10 CFR 70.9(a),
occurred, which requires that information provided to the NRC be
complete and accurate in all material respects. The violation involved
the following:
a. On November 25, 2008, NFS submitted to the NRC a Reply to Notice
of Violation that was not complete and accurate in all material
respects. NFS's letter documented that all fire dampers in procedure
NFS-GH-22 were inspected in September of 2008, and passed the
inspection, when in fact, 12 of the fire dampers had not been inspected
(three of which were designated as items relied on for safety). The NRC
preliminarily concluded that the submittal of inaccurate information
was due, in part, to the willful actions of a former Industrial Safety
Specialist at NFS who was tasked with drafting the written reply to the
Notice of Violation. The inaccurate information was material to the NRC
because it was used by the NRC to confirm that the required fire damper
inspections had been completed.
b. During the NRC's August 2009 inspection, the NRC attempted to
verify the corrective actions as documented in the November 25, 2008
Reply to Notice of Violation. In support of the inspection, the
aforementioned former Industrial Safety Specialist at NFS created and
provided a document to the NRC inspector, which indicated that all but
one of the fire dampers had been fully inspected during 2008, when in
fact, more than one of the dampers had not been fully inspected. The
NRC preliminarily concluded that this inaccurate information was
willfully provided to the NRC. This information was material to the NRC
because it was used during the inspection to confirm that the required
fire damper inspections had been completed.
2. The NRC concluded that the actions of the former NFS Industrial
Safety Specialist were willful. In its investigation, NFS did not reach
any conclusions regarding willfulness.
3. In response to the violation described above, NFS implemented
numerous corrective actions and enhancements, including but not limited
to a prompt investigation into the incident, a root cause and
corrective action review, an extent of condition and extent of cause
review, a Safety Culture Implications Review, organizational and
process changes in response to the 10 CFR 70.9 violation, training and
communication initiatives, initiatives to improve employee awareness of
the incident and lessons learned, and initiatives to gauge employee
awareness of NFS's corrective actions, enhancements, and lessons
learned.
4. In response to the issues as described in Section III.1(a) and
(b) above, NFS agreed to the following actions:
a. Within 30 days of issuance of this Confirmatory Order, NFS will
submit a Reply to a Notice of Violation, which documents its corrective
actions and enhancements as discussed in Section III.3 above. NFS's
Reply to a Notice of Violation will be consistent with the requirements
of 10 CFR 2.201.
b. Within one year of issuance of this Confirmatory Order, NFS will
conduct an effectiveness review of each completed corrective action
identified in its written Reply to a Notice of Violation. In response
to its effectiveness review, NFS will implement additional corrective
actions to address any deficiencies or weaknesses, and will continue to
do so until such deficiencies and weaknesses are resolved.
c. Within six months of issuance of this Confirmatory Order, NFS
will conduct an assessment of the effectiveness of its actions to
assure the adequacy and accuracy of information submitted to the NRC,
including continuous improvements to its processes and changes to its
organizational structure. The assessment will be conducted by an
independent group (i.e., from outside the safety organization). NFS
will address, through enhancements and corrective actions, the issues
identified as a result of the assessment.
d. NFS agrees to develop and implement an appropriate safety
culture improvement plan to address the findings identified in the
second Safety Culture Assessment report that was provided to the NRC on
June 29, 2010. NFS also agrees to assess the effectiveness of its plan
and implement additional corrective actions for any weaknesses or
deficiencies identified, by June 2012. Corrective actions will continue
to be implemented until such time that NFS demonstrates to NRC that the
actions were fully effective.
e. NFS will conduct integrated independent safety culture
assessments using a variety of appropriate assessment tools (which may
include, but are not limited to, an independent third party review,
employee surveys, Nuclear Safety Review Board inputs, self-
assessments), no later than June 2013, and at least every 24 months
thereafter, to an accepted nuclear industry standard. The safety
culture assessments will include the following provisions and
attributes:
i. The integrated assessment results will be shared with NFS staff
within 30 days of completion of results.
ii. The integrated assessment results will be provided to the NRC
within 30 days of completion of results.
iii. The corrective action plans to address the issues identified
in these integrated assessments will be provided to the NRC within 60
days of completion of results.
iv. Appropriate and timely corrective actions will be implemented
to address the issues identified in these assessments.
v. Effectiveness reviews of corrective actions will be implemented
within one year of completion of the corrective action. Additional
corrective action will be taken to address those actions which were not
fully effective.
vi. NFS will inform the NRC when it has determined that
improvements in safety culture are sufficient and sustainable.
vii. The above actions involving independent safety culture
assessments will continue until NRC has concluded that the actions were
fully effective.
f. NFS will complete an assessment of its current corrective action
program against the requirements of NQA-1-2008, Part III, Subpart 3.1,
``Non-Mandatory Appendix 16A-1.'' Based on this assessment, NFS will
submit a license amendment request within nine months of the date of
issuance of this Confirmatory Order incorporating into the license its
current corrective action program including the additional enhancements
made to the program as a result of the assessment.
[[Page 74101]]
g. NFS shall implement metrics to measure overall safety
performance at the facility.
5. The NRC and NFS agree that the above elements will be
incorporated into a Confirmatory Order, and that the two examples of a
violation of 10 CFR 70.9 will be cited as a Notice of Violation, and
included as an attachment to the final Confirmatory Order. In addition,
NFS agrees to waive its hearing rights for the issues documented in the
Confirmatory Order.
6. In consideration of the commitments delineated in Section III.4
above and in Section V, the NRC agrees to refrain from proposing a
civil penalty for all matters discussed in the NRC's letter to NFS of
July 20, 2010 (EA-10-076).
7. Issuance of this Confirmatory Order for the above actions
supersedes the NRC's Confirmatory Order to NFS, dated February 21,
2007, which is now closed.
8. This agreement is binding upon successors and assigns of NFS.
IV
Since the licensee has agreed to take additional actions to address
NRC concerns, as set forth in Section V, the NRC has concluded that its
concerns can be resolved through issuance of this Confirmatory Order.
I find that NFS's commitments as set forth in Section V are
acceptable and necessary and conclude that with these commitments, the
public health and safety are reasonably assured. In view of the
foregoing, I have determined that public health and safety require that
NFS's commitments be confirmed by this Order. Based on the above and
NFS's consent, this Confirmatory Order is immediately effective upon
issuance.
V
Accordingly, pursuant to Sections 51, 53, 161b, 161i, 161o, 182 and
186 of the Atomic Energy Act of 1954, as amended, and the Commission's
regulations in 10 CFR 2.202 and 10 CFR part 70, it is hereby ordered,
effective immediately, that License No. SNM-124 Is modified as follows:
1. Within 30 days of issuance of this Confirmatory Order, NFS will
submit a Reply to a Notice of Violation, which documents its corrective
actions and enhancements as discussed in Section III.3 above. NFS's
Reply to the Notice of Violation will be consistent with the
requirements of 10 CFR 2.201.
2. Within one year of issuance of this Confirmatory Order, NFS will
conduct an effectiveness review of each completed corrective action
identified in its written Reply to a Notice of Violation. In response
to its effectiveness review, NFS will implement additional corrective
actions to address any deficiencies or weaknesses, and will continue to
do so until such deficiencies and weaknesses are resolved.
3. Within six months of issuance of this Confirmatory Order, NFS
will conduct an assessment of the effectiveness of its actions to
assure the adequacy and accuracy of information submitted to the NRC,
including continuous improvements to its processes and changes to its
organizational structure. The assessment should be conducted by an
independent group (i.e., from outside the safety organization). NFS
will then address the issues identified as a result of the assessment.
4. NFS agrees to develop and implement an appropriate safety
culture improvement plan to address the findings identified in the
second Safety Culture Assessment report that was provided to the NRC on
June 29, 2010. NFS also agrees to assess the effectiveness of its plan,
and implement additional corrective actions for any weaknesses or
deficiencies identified, by June 2012. Corrective actions will continue
to be implemented until such time that NFS has demonstrated that the
actions were fully effective.
5. NFS will conduct integrated independent safety culture
assessments using a variety of appropriate assessment tools (which may
include, but are not limited to, an independent third party review,
employee surveys, Nuclear Safety Review Board inputs, self-
assessments), no later than June 2013, and at least every 24 months
thereafter, to an accepted nuclear industry standard. The safety
culture assessments will include the following provisions and
attributes:
a. The integrated assessment results will be shared with NFS staff
within 30 days of completion of results.
b. The integrated assessment results will be provided to the NRC
within 30 days of completion of results.
c. The corrective action plans to address the issues identified in
these integrated assessments will be provided to the NRC within 60 days
of completion of results.
d. Appropriate and timely corrective actions will be implemented to
address the issues identified in these assessments.
e. Effectiveness reviews of corrective actions will be implemented
within one year of completion of the corrective action. Additional
corrective action is taken to address those actions which were not
fully effective.
f. NFS will inform the NRC when it has determined that improvements
in safety culture are sufficient and sustainable.
g. The above actions involving independent safety culture
assessments will continue until NRC has concluded that the actions were
fully effective.
6. NFS will complete an assessment of its current corrective action
program against the requirements of NQA-1-2008, Part III, Subpart 3.1,
``Non-Mandatory Appendix 16A-1.'' Based on this assessment, NFS will
submit a license amendment request within nine months of the date of
issuance of this Confirmatory Order, incorporating into the license its
current corrective action program including the additional enhancements
made to the program as a result of the assessment.
7. NFS shall implement metrics to measure overall safety
performance at the facility.
The Regional Administrator, NRC Region II, may relax or rescind, in
writing, any of the above conditions upon a showing by NFS of good
cause.
VI
Any person adversely affected by this Confirmatory Order, other
than NFS, may request a hearing within 20 days of its publication in
the Federal Register. Where good cause is shown, consideration will be
given to extending the time to request a hearing. A request for
extension of time must be made in writing to the Director, Office of
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555,
and include a statement of good cause for the extension.
All documents filed in NRC adjudicatory proceedings, including a
request for hearing, a petition for leave to intervene, any motion or
other document filed in the proceeding prior to the submission of a
request for hearing or petition to intervene, and documents filed by
interested governmental entities participating under 10 CFR 2.315(c),
must be filed in accordance with the NRC E-Filing rule (72 FR 49139,
August 28, 2007). The E-Filing process requires participants to submit
and serve all adjudicatory documents over the internet, or in some
cases to mail copies on electronic storage media. Participants may not
submit paper copies of their filings unless they seek an exemption in
accordance with the procedures described below.
To comply with the procedural requirements of E-Filing, at least
ten (10) days prior to the filing deadline, the participant should
contact the Office of the Secretary by e-mail at
[[Page 74102]]
[email protected], or by telephone at (301) 415-1677, to request
(1) a digital ID certificate, which allows the participant (or its
counsel or representative) to digitally sign documents and access the
E-Submittal server for any proceeding in which it is participating; and
(2) advise the Secretary that the participant will be submitting a
request or petition for hearing (even in instances in which the
participant, or its counsel or representative, already holds an NRC-
issued digital ID certificate). Based upon this information, the
Secretary will establish an electronic docket for the hearing in this
proceeding if the Secretary has not already established an electronic
docket.
Information about applying for a digital ID certificate is
available on NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/apply-certificates.html. System requirements for accessing
the E-Submittal server are detailed in NRC's ``Guidance for Electronic
Submission,'' which is available on the agency's public Web site at
http://www.nrc.gov/site-help/e-submittals.html. Participants may
attempt to use other software not listed on the Web site, but should
note that the NRC's E-Filing system does not support unlisted software,
and the NRC Meta System Help Desk will not be able to offer assistance
in using unlisted software.
If a participant is electronically submitting a document to the NRC
in accordance with the E-Filing rule, the participant must file the
document using the NRC's online, Web-based submission form. In order to
serve documents through the Electronic Information Exchange (EIE),
users will be required to install a Web browser plug-in from the NRC
Web site. Further information on the Web-based submission form,
including the installation of the Web browser plug-in, is available on
the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html.
Once a participant has obtained a digital ID certificate and a
docket has been created, the participant can then submit a request for
hearing or petition for leave to intervene. Submissions should be in
Portable Document Format (PDF) in accordance with NRC guidance
available on the NRC public Web site at http://www.nrc.gov/site-help/e-submittals.html. A filing is considered complete at the time the
documents are submitted through the NRC's E-Filing system. To be
timely, an electronic filing must be submitted to the E-Filing system
no later than 11:59 p.m. Eastern Time on the due date. Upon receipt of
a transmission, the E-Filing system time-stamps the document and sends
the submitter an e-mail notice confirming receipt of the document. The
E-Filing system also distributes an e-mail notice that provides access
to the document to the NRC Office of the General Counsel and any others
who have advised the Office of the Secretary that they wish to
participate in the proceeding, so that the filer need not serve the
documents on those participants separately. Therefore, applicants and
other participants (or their counsel or representative) must apply for
and receive a digital ID certificate before a hearing request/petition
to intervene is filed so that they can obtain access to the document
via the E-Filing system.
A person filing electronically using the agency's adjudicatory E-
Filing system may seek assistance by contacting the NRC Meta System
Help Desk through the ``Contact Us'' link located on the NRC Web site
at http://www.nrc.gov/site-help/e-submittals.html, by e-mail at
[email protected], or by a toll-free call at (866) 672-7640. The
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m.,
Eastern Time, Monday through Friday, excluding government holidays.
Participants who believe that they have a good cause for not
submitting documents electronically must file an exemption request, in
accordance with 10 CFR 2.302(g), with their initial paper filing
requesting authorization to continue to submit documents in paper
format. Such filings must be submitted by: (1) First class mail
addressed to the Office of the Secretary of the Commission, U.S.
Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention:
Rulemaking and Adjudications Staff; or (2) courier, express mail, or
expedited delivery service to the Office of the Secretary, Sixteenth
Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland
20852, Attention: Rulemaking and Adjudications Staff. Participants
filing a document in this manner are responsible for serving the
document on all other participants. Filing is considered complete by
first-class mail as of the time of deposit in the mail, or by courier,
express mail, or expedited delivery service upon depositing the
document with the provider of the service. A presiding officer, having
granted an exemption request from using E-Filing, may require a
participant or party to use E-Filing if the presiding officer
subsequently determines that the reason for granting the exemption from
use of E-Filing no longer exists.
Documents submitted in adjudicatory proceedings will appear in
NRC's electronic hearing docket which is available to the public at
http://ehd.nrc.gov/EHD_Proceeding/home.asp, unless excluded pursuant
to an order of the Commission, or the presiding officer. Participants
are requested not to include personal privacy information, such as
social security numbers, home addresses, or home phone numbers in their
filings, unless an NRC regulation or other law requires submission of
such information. With respect to copyrighted works, except for limited
excerpts that serve the purpose of the adjudicatory filings and would
constitute a Fair Use application, participants are requested not to
include copyrighted materials in their submission.
If a person (other than NFS) requests a hearing, that person shall
set forth with particularity the manner in which his interest is
adversely affected by this Confirmatory Order and shall address the
criteria set forth in 10 CFR 2.309(d) and (f).
If a hearing is requested by a person whose interest is adversely
affected, the Commission will issue an order designating the time and
place of any hearing. If a hearing is held, the issue to be considered
at such hearing shall be whether this Confirmatory Order should be
sustained.
In the absence of any request for hearing, or written approval of
an extension of time in which to request a hearing, the provisions
specified in Section V above shall be final 20 days from the date this
Confirmatory Order is published in the Federal Register without further
order or proceedings. If an extension of time for requesting a hearing
has been approved, the provisions specified in Section V shall be final
when the extension expires if a hearing request has not been received.
A request for hearing shall not stay the immediate effectiveness of
this order.
Dated this 16th day of November 2010.
For the Nuclear Regulatory Commission.
Victor M. McCree,
Deputy Regional Administrator for Operations.
[FR Doc. 2010-30116 Filed 11-29-10; 8:45 am]
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