[Federal Register Volume 77, Number 205 (Tuesday, October 23, 2012)]
[Pages 64831-64834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26052]



[Docket No. 40-3392; License No. SUB-526; EA-12-157; NRC-2012-0244]

Confirmatory Order; In the Matter of Honeywell International 
Inc.; Metropolis, Illinois


    Honeywell International Inc. (Honeywell or Licensee) is the holder 
of Materials License No. SUB-526, 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 40. Originally issued on December 17, 
1958, the license has been renewed many times, most recently on May 11, 
2007. The license authorizes the operation of Honeywell's Metropolis 
Works facility in accordance with the conditions specified therein. The 
facility is located in Metropolis, Illinois.


    From May 21 through 24, 2012, an NRC inspection was conducted at 
the Metropolis Works facility pursuant to NRC Temporary Instruction 
(TI) 2600/015, ``Evaluation of Licensee Strategies for the Prevention 
and/or Mitigation of Emergencies at Fuel Facilities.'' The objective of 
the TI inspection was to independently verify that Honeywell is 
adequately prepared to prevent and/or mitigate the consequences of 
selected safety/licensing basis events and to evaluate the adequacy of 
those emergency prevention and/or mitigation strategies for dealing 
with the consequences of selected beyond-safety/licensing basis events. 
At the time of the inspection, the Metropolis Works facility had been 
shut down since May 9, 2012, for a planned maintenance outage.
    The inspection identified significant concerns related to 
Honeywell's Uranium Hexafluoride (UF6) and Hydrogen Fluoride 
(HF) source terms, used as a basis for the Honeywell Emergency Response 
Plan (ERP). Specifically, the inspection identified that the design of 
the process equipment in the Feed Materials Building at the Metropolis 
Works facility lacks seismic restraints, supports, and bracing that 
would assure process equipment integrity during a credible seismic 
event or tornado. Because the Metropolis Works facility was shut down 
for a planned maintenance outage, no immediate safety concern existed. 
The NRC concluded, however, that the potential consequences of the 
inspection findings were significant.

[[Page 64832]]

Specifically, when the Metropolis Works facility was operating, the 
amount of UF6 that could have been released during a 
credible seismic event or tornado was significantly larger than that 
assumed in the development of the facility's ERP.
    The inspection results were documented in NRC Inspection Report No. 
40-3392/2012-006, issued on August 9, 2012. At that time, the NRC 
identified two apparent violations.
    First, contrary to 10 CFR 40.31(j)(3), on May 27, 2005, Honeywell 
submitted an ERP that did not include an identification of each type of 
accident for which protective actions may be needed. Specifically, the 
ERP submitted by Honeywell did not identify accident sequences related 
to credible seismic and tornado events that could result in large 
UF6 releases for which protective actions may be needed.
    Second, contrary to 10 CFR 40.9(a), certain information Honeywell 
is required to maintain by license condition is not complete and 
accurate in all material respects. Under License Condition 18, 
Honeywell is required to conduct authorized activities at the 
Metropolis Work facility in accordance with the statements, 
representation, and conditions in its Integrated Safety Analysis (ISA) 
Summary (License Condition 18.D). The ISA Summary states, in part, that 
``the plant is designed to withstand the 475-yr earthquake with no 
safety implications.'' The NRC's May 2012 inspection identified, 
however, that the ground motion associated with a 475-yr earthquake 
would have safety implications due to the design of the Metropolis 
Works facility. This apparent inaccuracy is material to the NRC because 
it involves information the NRC staff reasonably considers as part of 
its oversight of Honeywell as a licensee.
    Concurrent with ongoing NRC review of the inspection results and to 
address immediate Agency concerns, on July 13, 2012, the NRC issued a 
Confirmatory Action Letter (CAL) to Honeywell. The CAL confirmed 
commitments made by Honeywell to ensure that, before licensed 
operations resumed, the Metropolis Works facility's ERP would be 
revised so that it is consistent with design and operational 
limitations for all potentially affected processes. This Confirmatory 
Order will supersede the CAL issued on July 13, 2012. This Order 
provides the basis for Honeywell to implement corrective actions prior 
to resuming NRC licensed operations.


    The NRC concludes that significant corrective actions at the 
Metropolis Work facility are necessary to provide reasonable assurance 
of public health and safety. The NRC further concludes that formalizing 
the corrective actions proposed by Honeywell necessitates the issuance 
of this Confirmatory Order. Consistent with Section 3.7 of the NRC's 
Enforcement Policy, the NRC is issuing this Confirmatory Order in lieu 
of issuance of a Notice of Violation and consideration of civil 
penalties for the apparent violations described above.
    On October 11, 2012, Honeywell consented to issuance of this Order 
with the commitments described in Section IV below. Honeywell further 
agreed that this Order will be effective 30 days from issuance and 
waived its right to a hearing on this Order.
    I find that the Licensee's commitments described in Section IV are 
acceptable and necessary and conclude that, with these commitments, the 
Metropolis Works facility's safety and the safety of the public is 
reasonably assured. In view of the foregoing, I have determined that 
public health and safety require that the Licensee's commitments be 
confirmed by this Order. Based on the above and the Licensee's consent, 
this Order will be effective 30 days from issuance. Contingent upon the 
Licensee satisfying its commitments under this Order, the NRC will not 
pursue further enforcement action based on the two apparent violations 
described in Section II of this Order.


    Accordingly, pursuant to Sections 61, 63, 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 40, it is hereby ordered 
that license no. SUB-526 IS modified as follows:

    1. Honeywell shall submit to the Director, NRC Office of Nuclear 
Material Safety and Safeguards, the following documentation for 
    a. An evaluation of external events at the Metropolis Works 
facility that clearly defines and provides the safety bases for:
    i. Seismic and wind design;
    ii. The structures, systems, or components relied upon to 
protect workers and the public during both intermediate and high 
consequence events;
    iii. The definitions of ``intermediate-consequence event'' and 
``high-consequence event'' for non-radiological releases; and
    iv. The definitions of ``unlikely'' and ``highly unlikely'' for 
seismic and wind events.
    b. A revised ERP (License Condition 24) that, consistent with 
the evaluation produced in response to Item 1.a, defines all 
planning bases and articulates all necessary modifications to the 
Metropolis Works facility.
    c. Documentation of the design bases for the proposed 
modifications to the Metropolis Works facility that will be needed 
to satisfy Items 1.a and 1.b (e.g., design criteria, engineering 
methodology, application of Codes and Standards).
    2. Honeywell shall develop, implement, and have available for 
NRC inspection the quality assurance measures for the modifications 
referred to in Item 1.c. These quality assurance measures shall 
address, at a minimum, the following areas: design, procurement, 
inspections and tests, installation, document control, procedures 
and drawings, and records.
    3. Honeywell shall implement the modifications referred to in 
Item 1.c before seeking to resume NRC-licensed operations at the 
Metropolis Works facility.
    4. After Honeywell completes Items 1-3 and the NRC verifies the 
acceptability of the facility modifications referred to in Item 1.c, 
Honeywell may seek NRC approval to resume licensed operations at the 
Metropolis Works facility. Honeywell shall submit its request to the 
NRC in writing at least 30 days before it intends to resume licensed 
operations at the Metropolis Works facility. Honeywell shall not 
resume licensed operations until the NRC grants its request in 
    5. At least 15 days before resuming licensed operations at the 
Metropolis Works facility, Honeywell shall demonstrate the adequacy 
of its revised ERP by conducting an onsite exercise meeting the 
requirements in 10 CFR 40.31(j)(3)(xii).
    6. Honeywell shall submit a revised ISA Summary (License 
Condition 18.D) to the NRC no later than six months after resuming 
licensed operations at the Metropolis Works facility.
    The Regional Administrator, NRC Region II, may relax or rescind, in 
writing, any of the above conditions upon a showing by Honeywell of 
good cause.


    Any person adversely affected by this Confirmatory Order, other 
than Honeywell, 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 Regional 
Administrator, Region II, U.S. Nuclear Regulatory Commission, 245 
Peachtree Center Avenue NE., Suite 1200, Atlanta, GA, 30303-1257, 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

[[Page 64833]]

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 email at [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 NRC'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 
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'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 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 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.
    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 the 
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 Honeywell) 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 C.F.R. 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 
    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 IV 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 IV shall be 
final when the extension expires if a hearing request has not been 

    Dated this 15th day of October, 2012.

[[Page 64834]]

    For the Nuclear Regulatory Commission.
Victor M. McCree,
Regional Administrator.
[FR Doc. 2012-26052 Filed 10-22-12; 8:45 am]