[Federal Register Volume 77, Number 136 (Monday, July 16, 2012)]
[Notices]
[Pages 41811-41814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17227]


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NUCLEAR REGULATORY COMMISSION

[NRC-2012-0171; Docket Nos. 50-391; Construction Permit No. CPPR-92]


In the Matter of Tennessee Valley Authority Watts Bar Nuclear 
Plant EA-12-021; Confirmatory Order (Effective Immediately)

I

    Tennessee Valley Authority (TVA or Applicant) is the holder of 
Construction Permit No. CPPR-92, issued by the U.S. Nuclear Regulatory 
Commission (NRC or the Commission) pursuant to Title 10 of the Code of 
Federal Regulations (10 CFR) Part 50, on January 23, 1973, and extended 
to March 31, 2013. The permit authorizes the construction of Watts Bar 
Nuclear Plant, Unit 2 (Watts Bar or facility), in accordance with 
conditions specified therein. The facility is located on the 
Applicant's site in Spring City, Tennessee.
    This Confirmatory Order is the result of an agreement reached 
during an alternative dispute resolution (ADR) mediation session 
conducted on May 21, 2012.

II

    On January 13, 2012, the NRC's Office of Investigations (OI) 
completed an investigation (OI Case No. 2-2011-003) regarding 
activities at the Watts Bar Nuclear Plant. Based on the evidence 
developed during the investigation, the NRC staff concluded that on or 
about August 16, 2010, an electrician and foreman employed by a 
subcontractor at Watts Bar, Unit 2, deliberately falsified work order 
packages for primary containment penetrations, and caused TVA to be in 
apparent violation of 10 CFR part 50, appendix B, Criterion V, 
Instructions, Procedures, and Drawings, and 10 CFR 50.9, Completeness 
and Accuracy of Information. The results of the investigation were sent 
to TVA in a letter dated March 23, 2012.

III

    On May 21, 2012, the NRC and TVA 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 or resolving any differences regarding their 
dispute. This confirmatory order is issued pursuant to the agreement 
reached during the ADR process. The elements of the agreement consist 
of the following:
    1. TVA agreed that on or about August 16, 2010, one violation 
occurred involving the requirements of 10 CFR part 50, appendix B, 
Criterion V, Instructions, Procedures, and Drawings, and 10 CFR 50.9, 
Completeness and Accuracy of Information. Specifically, on August 16, 
2010, two subcontractor employees (one craft and one craft foreman) at 
Watts Bar Unit 2 deliberately falsified the micrometer readings for 
cables listed in Modification/Addition Instruction (MAI) 3.3 data 
sheets, and falsely annotated on the WOs that micrometer readings had 
been performed for cables in primary containment penetrations, when the 
micrometer readings had not been completed. Additionally, the craft 
foreman falsely attested that a work order review, field walk down, 
review of craft documentation, and the scope of work had all been 
completed. The failure to follow the WO procedures and perform the 
required micrometer measurements, field walk downs, and WO reviews is a 
violation of 10 CFR part 50, appendix B, Criterion V, which requires, 
in part, that activities affecting quality shall be prescribed by 
documented instructions, procedures, or drawings, of a type appropriate 
to the circumstances and shall be accomplished in accordance with these 
instructions, procedures, or drawings. As a result of the WOs and MAI 
3.3 data sheets being falsified, the applicant also failed to comply 
with 10 CFR 50.9(a), which requires, in part, that information required 
by the Commission's regulations to be maintained by an applicant shall 
be complete and accurate in all material respects. 10 CFR part 50, 
appendix B, Criterion XVII, Quality Assurance Records, requires that 
sufficient records be maintained to furnish evidence of activities 
affecting quality. The WOs and associated MAI-3.3 data sheets are 
related to primary containment penetration electrical cabling, which 
involve activities affecting quality, and thus are required by 10 CFR 
part 50, appendix B, Criterion XVII, to be maintained by an applicant.
    2. At the ADR, TVA provided corrective actions and enhancements 
taken shortly after its identification of the incident in August 2010. 
These actions included but were not limited to the following:
    a. The prompt cessation of all containment electrical penetration 
work activities, and the initiation of an internal review of the 
incident. Prior to resuming work associated with electrical 
penetrations, briefings were conducted with contractor electrical 
support personnel regarding the falsification event and lessons learned 
to ensure that the scope of the event was communicated to the group.
    b. TVA conducted a root cause evaluation of the incident. In 
addition, an extent of condition review of the incident was conducted, 
which confirmed that there were no additional examples of 
falsification.
    c. TVA's Office of Inspector General performed an independent 
investigation of this event, the results of which led to felony 
prosecution and conviction of two individuals for falsifying government 
records.

[[Page 41812]]

    d. Safety meetings were conducted the week of April 5, 2011, with 
all contractor personnel (supervision, support personnel, and craft) 
that addressed the Watts Bar Unit 2 Site Vice President's and 
Contractor Project Manager's expectations regarding the value of one's 
signature and warning about the falsification of documents.
    e. TVA recognized the need to re-enforce, TVA fleet-wide, many of 
the same human performance factors that were identified as contributors 
to the electrical penetration event. In June 2011, TVA implemented the 
Operating Group Human Performance (HU) program to promote behaviors 
throughout the TVA Operating Group (both Nuclear and non-Nuclear) that 
support safe and reliable execution of work, and that contribute to 
achieving an incident-free safety culture.
    f. TVA has also completed 10 CFR 50.9 training at Belemnite Nuclear 
Plant for the TVA and Contractor leadership team. This training was 
conducted in five separate training sessions from June 2011 through 
November 2011.
    3. Based on TVA's review of the incident and NRC concerns with 
respect to precluding recurrence of the violation, TVA agrees to the 
following corrective actions and enhancements:
    a. The Chief Nuclear Officer and the Senior Vice President of 
Nuclear Construction will issue a joint communication to all Nuclear 
Power Group and Nuclear Construction employees, including contractor 
and subcontractor employees located at TVA nuclear sites, regarding 
expectations for assuring work activities are performed and documented 
in a complete and accurate manner. This communication will be issued on 
or before August 1, 2012.
    b. These expectations will be reinforced through the use of fleet 
wide posters and communications. Communications will specifically 
discuss 10 CFR 50.9, complete and accurate information, willful 
violations, and their consequences. Posters will be installed on or 
before October 1, 2012.
    c. TVA will revise the existing Nuclear Power Group procedure on 
procedure use and adherence to reinforce the requirements of 10 CFR 
50.9 and the need to ensure complete and accurate documentation of work 
completion steps. TVA will update major contracts to include the 
requirement to comply with TVA's Procedure Use and Adherence procedure. 
Revisions will be completed by December 21, 2012.
    d. TVA will provide 10 CFR 50.9 training (both manager/supervisor 
as well as craft-level) to employees, including contractor and 
subcontractor employees, at all Nuclear Construction (Watts Bar Unit 2 
and Bellefonte) locations. Training will be completed by December 21, 
2012.
    e. TVA will provide refresher 10 CFR 50.9 training (both manager/
supervisor as well as craft-level) to employees, including contractor 
and subcontractor employees, at all Nuclear Construction (Watts Bar 
Unit 2 and Bellefonte) locations every two years through 2016. TVA will 
reassess the continued need for such training thereafter.
    f. TVA will enhance existing 10 CFR 50.9-related general employee 
training (GET) for new employees, including contractor and 
subcontractor employees located at TVA nuclear sites, joining Nuclear 
Power Group and Nuclear Construction and update annual requalification 
GET training. TVA will complete this item by December 21, 2012.
    g. Within six months of issuance of the Confirmatory Order, and 
again on or before July 1, 2013, TVA will perform checks of the Watts 
Bar Unit 2 Employee Concerns Program (ECP), to identify undue 
scheduling pressure issues identified by employees and employees of 
construction contractors and subcontractors. Issues identified will be 
addressed commensurate with safety and in accordance with TVA's 
Corrective Action Program.
    h. TVA will perform an effectiveness review of actions taken and 
actions planned, including those taken in response to the ECP checks 
described in Item 5.g, on or before July 1, 2013. Based on the results 
of the effectiveness review, TVA will implement appropriate corrective 
actions.
    i. Upon completion of the terms of the Confirmatory Order, TVA will 
provide the NRC with a letter discussing its basis for concluding that 
the Order has been satisfied.
    4. The NRC considers the corrective actions and enhancements 
discussed in Section III and Section V of this Confirmatory Order to be 
appropriately prompt and comprehensive to address the root and 
contributing causes that gave rise to the incident of August 2010.
    5. The NRC and TVA agree that the above elements will be 
incorporated into a Confirmatory Order.
    6. The resulting Confirmatory Order will be considered an escalated 
enforcement action by the NRC for any future assessment of Watts Bar, 
as appropriate.
    7. In consideration of the commitments delineated in Section III.3 
and Section V of this Confirmatory Order, the NRC agrees to refrain 
from proposing a civil penalty or issuing a Notice of Violation for all 
matters discussed in the NRC's letter to TVA of March 23, 2012 (EA-12-
021).
    8. This agreement is binding upon successors and assigns of TVA.
    On June 12, 2012, the Applicant consented to issuance of this Order 
with the commitments, as described in Section V below. The Applicant 
further agreed that this Order is to be effective upon issuance and 
that it has waived its right to a hearing.

IV

    Since the Applicant has agreed to take actions to address the 
violation as set forth in Section V, the NRC has concluded that its 
concerns can be resolved through issuance of this Order.
    I find that the Applicant'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 
the Applicant's commitments be confirmed by this Order. Based on the 
above and the Applicant's consent, this Order is immediately effective 
upon issuance.

V

    Accordingly, pursuant to Sections 104b., 161b., 161i., 161o., 182, 
and 186 of the Atomic Energy Act of 1954, as amended (the Act), and the 
Commission's regulations in 10 CFR 2.202 and 10 FR Part 50, it is 
hereby ordered, effective immediately, that Construction Permit No. 
CPPR-92 is modified as follows:
    a. TVA's Chief Nuclear Officer and the Senior Vice President of 
Nuclear Construction will issue a joint communication to all Nuclear 
Power Group and Nuclear Construction employees, including contractor 
and subcontractor employees located at TVA nuclear sites, regarding 
expectations for assuring work activities are performed and documented 
in a complete and accurate manner. This communication will be issued on 
or before August 1, 2012.
    b. These expectations will be reinforced through the use of fleet 
wide posters and communications. Communications will specifically 
discuss 10 CFR 50.9, complete and accurate information, willful 
violations, and their consequences. Posters will be installed on or 
before October 1, 2012.
    c. TVA will revise the existing Nuclear Power Group procedure on 
procedure use and adherence to reinforce the requirements of 10 CFR 
50.9 and the need to ensure complete and accurate documentation of work

[[Page 41813]]

completion steps. TVA will update major contracts to include the 
requirement to comply with TVA's Procedure Use and Adherence procedure. 
Revisions will be completed by December 21, 2012.
    d. TVA will provide 10 CFR 50.9 training (both manager/supervisor 
as well as craft-level) to employees, including contractor and 
subcontractor employees, at all Nuclear Construction (Watts Bar Unit 2 
and Bellefonte Nuclear Plant) locations. Training will be completed by 
December 21, 2012.
    e. TVA will provide refresher 10 CFR 50.9 training (both manager/
supervisor as well as craft-level) to employees, including contractor 
and subcontractor employees, at all Nuclear Construction (Watts Bar 
Unit 2 and Bellefonte Nuclear Plant) locations every two years through 
2016. TVA will reassess the continued need for such training 
thereafter.
    f. TVA will enhance existing 10 CFR 50.9-related general employee 
training (GET) for new employees, including contractor and 
subcontractor employees located at TVA nuclear sites, joining Nuclear 
Power Group and Nuclear Construction and update annual requalification 
GET training. TVA will complete this item by December 21, 2012.
    g. Within six months of issuance of the Confirmatory Order, and 
again on or before July 1, 2013, TVA will perform checks of the Watts 
Bar Unit 2 construction contractors and subcontractors, via its 
Employee Concerns Program (ECP), to identify undue scheduling pressure 
issues. Issues identified will be addressed commensurate with safety 
and in accordance with TVA's Corrective Action Program.
    h. TVA will perform effectiveness review of actions taken and 
actions planned, including those taken in response to the ECP checks 
described in Item 5.g, on or before July 1, 2013. Based on the results 
of the effectiveness review, TVA will implement appropriate corrective 
actions.
    i. Upon completion of the terms of the Confirmatory Order, TVA will 
provide the NRC with a letter discussing its basis for concluding that 
the Order has been satisfied.
    The Regional Administrator, NRC Region II, may relax or rescind, in 
writing, any of the above conditions upon a showing by TVA of good 
cause.

VI

    Any person adversely affected by this Confirmatory Order, other 
than TVA, 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 10 
days prior to the filing deadline, the participant should contact the 
Office of the Secretary by email at [email protected], or by 
telephone at 301-415-1677, to request (1) a digital identification (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 the 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 System, 
users will be required to install a Web browser plug-in from the NRC's 
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 the NRC guidance 
available on the NRC's 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 email notice confirming receipt of the document. The 
E-Filing system also distributes an email notice that provides access 
to the document to the NRC's 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's Web site 
at http://www.nrc.gov/site-help/e-submittals.html, by email at 
[email protected], or by a toll-free call at 1-866-672-7640. The 
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m., 
Eastern Time, Monday through Friday, excluding government holidays.

[[Page 41814]]

    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://ehd1.nrc.gov/ehd/, 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 TVA) 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 on 
which 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: Dated this 18th day of June 2012.

    For the Nuclear Regulatory Commission.
Victor M. McCree,
Regional Administrator.
[FR Doc. 2012-17227 Filed 7-13-12; 8:45 am]
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