[Federal Register Volume 79, Number 194 (Tuesday, October 7, 2014)]
[Notices]
[Pages 60506-60513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23939]



[[Page 60506]]

=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[EA-12-189; EA-13-196; NRC-2014-0218]


Confirmatory Order in the Matter of Chicago Bridge and Iron 
Company

AGENCY: Nuclear Regulatory Commission.

ACTION: Confirmatory order; issuance.

-----------------------------------------------------------------------

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a 
confirmatory order to Chicago Bridge and Iron Company (CB&I) confirming 
agreements reached in an Alternative Dispute Resolution session held on 
May 30, 2014. As part of the agreement, CB&I will take a number of 
actions to strengthen its safety culture monitoring program, employee 
concerns program, employee training, and communications. These actions 
are in addition to the actions being taken in response to the September 
16, 2013 confirmatory order issued by the NRC.

DATES: Issue Date: September 25, 2014.

ADDRESSES: Please refer to Docket ID NRC-2014-0218 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this action by the 
following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2014-0218. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: [email protected]. For questions about this Order, 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section of this document.
    NRC's Agencywide Documents Access and Management System (ADAMS): 
You may access publicly available documents online in the NRC Library 
at http://www.nrc.gov/reading-rm/adams.html. To begin the search, 
select ``ADAMS Public Documents'' and then select ``Begin Web-based 
ADAMS Search.'' For problems with ADAMS, please contact the NRC's 
Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-
4737, or by email to [email protected]. The ADAMS accession number 
for each document referenced in this document (if that document is 
available in ADAMS) is provided the first time that a document is 
referenced.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Robert Fretz, U.S. Nuclear Regulatory 
Commission, Washington DC 20555-0001; Telephone: 301-415-1980; email: 
[email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 25th day of September 2014.

    For the Nuclear Regulatory Commission.
Patricia K. Holahan,
Director, Office of Enforcement.

Confirmatory Order

(Effective Immediately)

I

    Chicago Bridge and Iron (CB&I), is a large multinational 
conglomerate engineering, procurement and construction company serving 
various industries in the United States and overseas, some of which are 
regulated by the U.S. Nuclear Regulatory Commission (NRC). CB&I's main 
office is located in The Woodlands, Texas.

II

    This Confirmatory Order (referenced as Confirmatory Order or Order) 
is the result of agreements reached during two separate alternative 
dispute resolution (ADR) mediation cases. The first case (EA-12-189) 
involved two mediation sessions conducted on June 11, 2013, and July 
29, 2013, and the second case (EA-13-196) involved one session that was 
conducted on May 30, 2014. All ADR mediation sessions were held in 
Rockville Maryland.

Report of Investigation 2-2011-047 (EA-12-189)

    On June 4, 2011, the NRC's Office of Investigations (OI) issued its 
report of investigation (OI Report No. 2-2011-047). The investigation 
related to a nuclear construction site in South Carolina, operated by 
CB&I, formerly known as Shaw Nuclear Services, Inc. and hereafter 
referred to as Shaw. Based upon evidence developed during its 
investigation, the NRC identified an apparent violation of Title 10 of 
the Code of Federal Regulations (10 CFR) 52.5, ``Employee protection,'' 
involving a former Shaw employee who was terminated, in part, for 
notifying Shaw and Louisiana Energy Service (at the direction of the 
individual's supervisor, a Shaw official), of a potential 10 CFR Part 
21 issue regarding selected heats of rebar that had failed the ASME 
bend test and may have been shipped to the Louisiana Energy Service 
facility. In addition, the NRC found Shaw's Code of Corporate Conduct 
to be overly restrictive and may prevent employees from raising nuclear 
safety concerns.
    By letter dated October 19, 2012, the NRC identified to CB&I the 
apparent violation of 10 CFR 52.5 and offered CB&I the opportunity to 
provide a response in writing, attend a pre-decisional enforcement 
conference (PEC), or to request ADR in which a neutral mediator with no 
decision-making authority would facilitate discussions between the NRC 
and CB&I, and if possible, assist the NRC and the parties in reaching 
an agreement on resolving the concerns. In a letter dated January 15, 
2013, CB&I provided a written response to the apparent violation. In 
the letter, CB&I denied it had violated 10 CFR 52.5, contending that 
the individual did not engage in a legally protected activity and was 
terminated solely for violating the company's Code of Conduct, which 
prohibited disclosing company confidential material to an unauthorized 
third party.
    Based upon the information gathered through the NRC's investigation 
and the information provided in the written response, the NRC issued a 
Notice of Violation (Notice) and Proposed Imposition of Civil Penalties 
to CB&I on April 18, 2013. As part of the Notice, the NRC required CB&I 
to either reply in writing to the Notice or to request ADR. CB&I 
continued to oppose the violation and, in lieu of continuing the 
enforcement process and eventually requesting a hearing on the 
violation, requested ADR.
    On June 11, 2013 and July 29, 2013, the NRC and CB&I met in 
Rockville, Maryland for ADR sessions mediated by a professional 
mediator, arranged through Cornell University's Institute on Conflict 
Resolution. The ADR sessions resulted in the issuance of a Confirmatory 
Order in September 2013. This Confirmatory Order is issued, in part, 
pursuant to the agreement reached during these ADR mediation sessions.

Report of Investigation 2-2011-036 (EA-13-196)

    On August 7, 2013, OI issued its report of investigation (OI Report 
No. 2-2011-036). The investigation related to a nuclear modular 
construction site located in Lake Charles, Louisiana, currently 
operated by CB&I and formerly known as Shaw Modular Solutions, Inc. 
(SMS). Based upon evidence developed during its investigation, the NRC 
identified an apparent violation of 10 CFR 52.4, ``Deliberate 
misconduct,'' involving former SMS employees who deliberately subverted 
welder qualifications requirements when: (1) A welder took a welder 
qualifications test on behalf of a coworker; (2) the coworker allowed 
the welder to take the qualifications tests on his behalf; and (3) the 
weld test

[[Page 60507]]

administrator certified that the coworker passed his welder 
qualifications tests when he knew that the tests were performed by 
another person.
    In a letter to CB&I dated February 20, 2014, the NRC identified the 
apparent violation of 10 CFR 52.4 and offered CB&I the opportunity to 
provide a response in writing, attend a PEC, or to request ADR in which 
a neutral mediator with no decision-making authority would facilitate 
discussions between the NRC and CB&I, and if possible, assist the NRC 
and the parties in reaching an agreement on resolving the concerns. By 
letter dated March 17, 2014, CB&I provided a written response to the 
apparent violation and requested a PEC. CB&I later amended its response 
and requested ADR in a letter dated April 22, 2014.
    On May 30, 2014, the NRC and CB&I met in Rockville, Maryland for an 
ADR session mediated by a professional mediator, arranged through 
Cornell University's Institute on Conflict Resolution. This 
Confirmatory Order is issued, in part, pursuant to the agreement 
reached during this ADR mediation session, and supersedes Confirmatory 
Order (EA-12-189) issued on September 16, 2013.

III

    The NRC acknowledges that CB&I had already undertaken actions 
related to a chilled work environment at its site in Lake Charles, 
Louisiana, formerly known as SMS. These actions were agreed to by CB&I 
in their May 17, 2013, letter in response to the NRC's chilling effect 
letter dated April 18, 2013. These actions include:
    1. Perform an independent focused assessment to determine if 
effective programmatic controls are in place at CB&I Lake Charles in 
the following five areas: control of special processes; inspections; 
personnel training and qualification; instructions, procedures, and 
drawings; and corrective actions.
    2. Review the independent contractor's 2012 nuclear safety culture 
assessment report and initiate corrective actions, as necessary.
    3. Enter the conditions associated with the Chilling Effect Letter 
into its corrective action program (CAP), characterize it as a 
significant condition adverse to quality (SCAQ), and complete a root 
cause analysis. CB&I shall evaluate the potential for similar issues at 
other CB&I nuclear facilities.
    Pursuant to the September 16, 2013, Confirmatory Order (EA-12-189), 
CB&I also agreed to take additional actions within CB&I's business 
groups where nuclear related activities take place including:
    1. Communicating CB&I's strategy to improve its nuclear safety 
culture recognizing that efforts to date have not been fully effective. 
This communication is to include a brief summary regarding employee 
protection, the NRC's concerns expressed in its April 18, 2013, 
Chilling Effect Letter regarding CB&I's Lake Charles site, and CB&I's 
experience, insights, lessons learned, and corrective actions both 
taken and planned. This communication will be followed by all-hands 
meetings for management to discuss the importance of the above written 
communication; and to allow employees to provide feedback and ask 
questions of management.
    2. Ensuring that its nuclear safety culture and safety conscious 
work environment policies, guidance and related materials are in place, 
updated, and consistent with: (1) the NRC's March 2011 Safety Culture 
Policy Statement and associated traits; and (2) the NRC's May 1996 
Safety Conscious Work Environment Policy Statement; and is informed by: 
(1) the NRC's Regulatory Issue Summary 2005-18, ``Guidance for 
Establishing and Maintaining a Safety Conscious Work Environment''; and 
(2) the industry's common language initiative (i.e., INPO 12-012, 
Revision 1, April 2013).
    3. Sharing the company's experience and insights with respect to 
improving nuclear safety culture, including lessons learned and actions 
taken in a presentation to other nuclear vendors in the industry at an 
NRC sponsored vendor conference; and if requested by the NRC, as a 
panelist in a breakout session at the 2014 Regulatory Information 
Conference.
    4. Hiring a third-party, independent consultant to assist CB&I to 
develop and/or revise its employee protection, nuclear safety culture 
and safety conscious work environment training for CB&I nuclear 
employees.
    5. Establishing a uniform Executive Review Board (ERB) process to 
ensure independent management review of all proposed significant 
adverse actions for all of its nuclear employees to ensure these 
actions comport with applicable employee protection requirements and 
nuclear safety culture traits, and to assess and mitigate the potential 
for any chilling effect.
    6. Developing a single Employee Concerns Program (ECP) for CB&I 
nuclear employees.
    7. Developing individual performance appraisal assessment criteria 
for individual supervisor's appraisals to evaluate if these individuals 
are meeting CB&I's expectations with regards to employee protection, 
Nuclear Safety Culture and Safety Conscious Work Environment.
    8. Establishing, where applicable, an active corrective action 
program (CAP) trending process to include the ability to trend root and 
contributing causes related to CB&I's nuclear safety culture and 
incorporate trending information in a process similar to that in NEI 
09-07.
    9. Developing a process by which personnel engaged in work 
associated with NRC-regulated activities departing the company are 
given the opportunity to participate in an Employee Concerns Program 
Exit Interview/Survey to facilitate identification of nuclear safety 
issues, resulting trends and conclusions.
    10. Establishing a nuclear safety culture oversight program, 
including one or more committees advised by external consultants with 
extensive nuclear experience.
    11. Establishing a CB&I Nuclear Safety Officer function to address 
company-wide nuclear safety culture and safety conscious work 
environment activities.
    12. Hiring a third-party, independent consultant to perform 
tailored comprehensive nuclear safety culture assessments, including 
site surveys, of all CB&I nuclear business entities not already 
assessed by a licensee and perform assessments or surveys to ensure 
effectiveness of the Nuclear Safety Culture and Safety Conscious Work 
Environment programs. Follow-up assessments or surveys shall be 
conducted every two years for a total of 4 years.
    13. Revising its Code of Corporate Conduct to include a provision 
stating that all employees have the right to raise nuclear safety and 
quality concerns to CB&I, the NRC, and Congress, or engage in any other 
type of protective activity without being subject to disciplinary 
action or retaliation.
    Subject to the satisfactory completion of the conditions of the 
September 16, 2013, Confirmatory Order by CB&I, the NRC exercised its 
enforcement discretion and withdrew the Notice of Violation and 
Proposed Imposition of Civil Penalties issued on April 18, 2013.
    As a result of the second ADR mediation session (EA-13-196) held on 
May 30, 2014, the NRC acknowledges that CB&I has taken corrective 
actions related to the apparent willful violations described in the 
NRC's letter dated February 20, 2014. These actions are documented in a 
CB&I letter dated June 16, 2014, following the second mediation 
session, and include:
    1. The issues surrounding the apparent violations (EA-13-196) were 
entered into CB&I's CAP. The resulting condition report was classified 
as a

[[Page 60508]]

SCAQ and a root cause investigation was performed.
    2. CB&I promptly notified the NRC of the apparent violations and 
the potential willful actions by some of its employees.
    3. The employment of the individuals involved in the apparent 
violations was terminated after an internal investigation determined 
that their actions were willful and unacceptable.
    4. CB&I verified that no materials impacted by this issue were 
shipped from Lake Charles.
    The NRC further acknowledges the following corrective actions taken 
and planned by CB&I to address willful violations of NRC requirements 
as described in the June 16, 2014, letter:
    1. Corrective actions to prevent recurrence of the apparent 
violations were identified. This includes training focused on the 
meaning of one's signature and the significance of deliberate/willful 
violations. This content was added to the new employee orientation at 
Lake Charles. A signature verification process was also implemented.
    2. All-Hands meetings were held to discuss the significance of 
deliberate and/or willful violations.
    3. CB&I implemented improvements to the weld production completion 
process, increased Quality Assurance oversight of weld test controls, 
and implemented additional verification activities by supervision and 
Quality Assurance.
    4. Extent of cause and extent of condition reviews were performed 
and identified issues were corrected.
    5. To support the monitoring and oversight of deliberate/willful 
misconduct at its facilities, CB&I implemented trend codes in its CAP 
related to the ability to trend procedure related issues/violations. 
Additionally, CB&I implemented an Executive Nuclear Safety Council 
comprised of senior facility and business line leaders and external 
consultants with extensive nuclear industry experience. This Council 
will assess nuclear safety performance across all locations and ensure 
corrective actions are taken company wide as needed for common or 
significant performance issues (such as deliberate/willful violations).
    Additionally, as a result of the second ADR mediation case (EA-13-
196), an agreement in principle was reached in which CB&I agreed to 
take further actions within its business groups where nuclear related 
activities take place, including:
    1. Adding willful violations and deliberate misconduct training to 
the scope of the training required by the September 16, 2013, 
Confirmatory Order. Training shall note that employees could be subject 
to individual enforcement action and/or sanctions for deliberate 
misconduct. The training shall also include a case study on willful 
violations and deliberate misconduct. The purpose of this training is 
also to familiarize CB&I employees with relevant NRC regulations (e.g., 
Appendix B to 10 CFR Part 50), and how NRC regulations are incorporated 
into CB&I policies, procedures and work practices in order to ensure 
that all CB&I employees understand their roles and responsibilities 
regarding compliance with NRC requirements.
    2. Revising CB&I's safety culture monitoring program to include 
focused questions on willful violations and deliberate misconduct. CB&I 
will also include willful violations and deliberate misconduct in 
CB&I's ECP effectiveness reports and assessments, and ERB tracking. 
CB&I will also revise the ECP exit interview form to include questions 
relating to whether or not the departing employee is aware of any 
deliberate/willful misconduct.
    3. Reinforcing CB&I's expectations regarding wrongdoing, and 
compliance with procedures and NRC requirements through various forms 
of communication at Lake Charles. Site managers and/or supervisors will 
periodically convey the lessons learned from relevant example 
wrongdoing cases during organizational meetings.
    On September 22, 2014, CB&I consented to the NRC issuing this 
Confirmatory Order with the commitments, as described in Section IV 
below. CB&I further agreed in its September 22, 2014, letter that this 
Order is to be effective upon issuance and that it has waived its right 
to a hearing. In view of this Confirmatory Order, consented by CB&I 
thereto as evidenced by their signed ``Consent and Hearing Waiver 
Form'' and subject to the satisfactory completion of the conditions of 
this Confirmatory Order by CB&I, the NRC is exercising its enforcement 
discretion and will not pursue the issuance of a Notice of Violation 
and Proposed Imposition of a Civil Penalty. In addition, the 
Confirmatory Order dated September 16, 2013, is hereby rescinded and 
replaced with this Confirmatory Order.
    The NRC has concluded that its concerns can be resolved through 
effective implementation of CB&I's commitments. I find that CB&I's 
commitments as set forth in Section IV 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 
the public health and safety require that CB&I's commitments be 
confirmed by this Order. Based on the above and CB&I's consent, this 
Order is immediately effective upon issuance.

IV

    Accordingly, pursuant to Sections 103, 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 52, it is hereby ordered, 
effective immediately, that:

    Note:  For purposes of this Confirmatory Order, the term 
``employees'' shall mean persons employed by CB&I and its 
contractors and subcontractors, excluding (a) short term (less than 
ninety (90) days) contractors, and subcontractors, and (b) 
suppliers, who are engaged in work associated with NRC-regulated 
activities at or directly related to a CB&I site or project.

A. Communication
    1. By no later than November 30, 2013, the CB&I Chief Executive 
Officer shall:
    (a) Communicate, in writing, to its current employees CB&I's 
strategy to improve its nuclear safety culture recognizing that efforts 
to date have not been fully effective. This communication shall include 
a brief summary of the subject of this settlement agreement regarding 
employee protection, the NRC's concerns expressed in its April 18, 
2013, Chilling Effect Letter regarding CB&I's Lake Charles site, and 
CB&I's experience, insights, lessons learned, and corrective actions 
both taken and planned.
    i. CB&I shall provide a copy of this communication to the NRC for 
prior review.
    (b) Require copies of the communication described above to be 
posted for forty-five (45) days in prominent locations where employees 
congregate.
    (c) Require all CB&I business units associated with NRC-regulated 
activities to hold all-hands meetings: (1) For management to discuss 
the importance of the above written communication; and (2) to allow 
employees to provide feedback and ask questions of management related 
to the communication listed above.
    2. By no later than December 31, 2013, CB&I shall ensure that its 
nuclear safety culture and safety conscious work environment policies, 
guidance, and related materials (e.g., brochures, posters) are in 
place, updated, and consistent with: (1) the NRC's March

[[Page 60509]]

2011 Safety Culture Policy Statement and associated traits; and (2) the 
NRC's May 1996 Safety Conscious Work Environment Policy Statement; and 
is informed by: (1) the NRC's Regulatory Issue Summary 2005-18, 
``Guidance for Establishing and Maintaining a Safety Conscious Work 
Environment''; and (2) the industry's common language initiative (INPO 
12-012, Revision 1, April 2013).
    (a) Copies of these materials shall be provided to the NRC for 
review at least two (2) weeks prior to issuance.
    (b) CB&I shall maintain and implement the materials in Section A.2.
    (c) CB&I will distribute copies of these updated policies and 
brochures to employees, and inform employees where all related 
materials can be located. These policies and brochures shall be 
maintained and provided to all new employees during initial 
orientation.
    3. A senior CB&I manager shall share the company's experience and 
insights with respect to improving nuclear safety culture, including 
lessons learned and actions taken in a presentation:
    (a) To other nuclear vendors in the industry at the next NRC vendor 
workshop currently scheduled for June 2014. The presentation shall be 
submitted to the NRC for review within one (1) month of the scheduled 
workshop.
    (b) If requested by the NRC, as a panelist in a breakout session at 
the 2014 Regulatory Information Conference.
    4. For the following eighteen (18) months after issuance of this 
Confirmatory Order, CB&I supervisors at Lake Charles shall periodically 
reinforce expectations regarding safety conscience work environment and 
wrongdoing to their respective work units such that employees receive a 
relevant message on one or more of these topics at least once per 
quarter. The periodic reinforcement may be accomplished as part of a 
routine pre-job brief or through other forms of communication, such as 
the use of company-wide posters or site supervisors conveying company 
values and/or lessons learned from relevant example wrongdoing cases 
during organizational meetings.
B. Training
    1. By no later than December 31, 2013, CB&I shall hire a third-
party, independent consultant, unrelated to the proceedings at issue, 
who is experienced with NRC employee protection regulations, Section 
211 of the Energy Reorganization Act, as amended, and nuclear safety 
culture and safety conscious work environment policies, to assist CB&I 
to develop and/or revise its employee protection, nuclear safety 
culture and safety conscious work environment training for all CB&I 
employees.
    (a) Training shall include case studies of discriminatory 
practices.
    (b) Training shall define key terms included in employee protection 
regulations, nuclear safety culture and safety conscious work 
environment policy statements, and be informed by the industry's common 
language initiative (e.g., nuclear safety issue, protected activity, 
adverse action, nuclear safety culture traits).
    (c) Training shall include topics such as behavioral expectations 
with regard to each nuclear safety culture trait. Training shall also 
include expectations for demonstrating support for raising nuclear 
safety and quality concerns, and all available avenues without fear of 
retaliation.
    (d) Training on CB&I's Corrective Action Program will also be 
incorporated, and will emphasize the low threshold for reporting, 
employee's rights, responsibilities and expectations for raising 
nuclear safety and quality issues and initiating corrective action 
documentation.
    (e) By July 15, 2014, the training shall include willful violations 
of NRC requirements and deliberate misconduct. Training shall note that 
employees could be subject to individual enforcement action and/or 
sanctions for violations of NRC requirements involving deliberate 
misconduct. This training shall also include a case study on willful 
violations of NRC regulations and deliberate misconduct.
    (f) By September 16, 2014, CB&I shall revise new employee 
orientation training to include the subject of willful violations of 
NRC regulations and deliberate misconduct. This training shall note 
that employees could be subject to individual enforcement action and/or 
sanctions for violations of NRC requirements involving deliberate 
misconduct. Training shall include an overview of how NRC regulations 
(specifically, at minimum, 10 CFR 52.4, ``Deliberate misconduct,'' and 
10 CFR Part 50, Appendix B, ``Quality Assurance Criteria for Nuclear 
Power Plants and Fuel Reprocessing Plants'') apply to work being 
performed by CB&I and shall include a statement that NRC regulations 
are incorporated into CB&I policies, procedures and work practices to 
ensure that all CB&I employees understand their roles and 
responsibilities regarding compliance with NRC requirements.
    (g) The training material shall be made available to the NRC upon 
request.
    2. Supervisory Training: Initial training, developed in paragraph 
B.1 above, for supervisors shall be piloted at least in part by a team 
consisting of the independent consultant and CB&I employees with 
expertise in these areas. Once finalized, this training will be 
conducted by the independent consultant at CB&I's Lake Charles site and 
may be conducted by CB&I employees trained by the team who developed 
and piloted the training at the other CB&I sites.
    (a) The training shall commence no later than April 1, 2014.
    (b) All training must be completed by December 31, 2014, and shall 
include a message from senior management.
    (c) Refresher training:
    i. Shall be primarily instructor led and be provided at least every 
two years for a period of four (4) years. This training may be provided 
by CB&I training staff.
    ii. Thereafter, refresher training may be computer-based and shall 
be provided annually.
    (d) Training records shall be retained consistent with applicable 
CB&I record retention policies and be made available to the NRC upon 
request.
    3. CB&I shall conduct primarily instructor-led employee protection, 
nuclear safety culture, safety conscious work environment training and 
willfulness training twice per year for any new supervisors hired after 
the initial training conducted as described in paragraphs 1 and 2 
above.
    4. Employee (Non-Supervisory) Training: Initial training, developed 
in paragraph B.1, for employees shall be piloted at least in part by a 
team consisting of the independent consultant and CB&I employees with 
expertise in these areas. Once finalized, this training will be 
conducted by the independent contractor at CB&I's Lake Charles site and 
may be conducted by CB&I employees trained by the team who developed 
and piloted the training at other CB&I sites.
    (a) All employees training shall commence within six (6) months 
following completion of their designated line managements' training.
    (b) All training must be completed by March 31, 2015, and shall 
include a message from senior management.
    (c) Refresher training may be computer-based and shall be provided 
annually.
    (d) Training will be primarily instructor led for new employees as 
part of their orientation program/process.

[[Page 60510]]

    (e) Training records shall be retained consistent with applicable 
CB&I record retention policies and be made available to the NRC upon 
request.
    5. Short-term Employee Training: Employees employed by CB&I for 
less than ninety (90) days will receive a ``one pager'' that captures 
the key elements of the training developed in Section B.1 above.
C. Work Processes
    1. By no later than March 31, 2014, where not already required by 
the applicable nuclear facility licensee, CB&I shall establish and 
maintain a uniform Executive Review Board (ERB) process to ensure 
independent management review of all proposed significant adverse 
actions (defined as three or more days off without pay up to and 
including termination for cause, but excluding reductions-in-force and 
other ordinary layoffs) for all of its employees below the level of 
Vice President to ensure these actions comport with applicable employee 
protection requirements and nuclear safety culture traits, and to 
assess and mitigate the potential for any chilling effect. The ERB 
shall review significant adverse actions prior to their execution.
    (a) The ERB process and procedure(s) shall be informed by 
benchmarking at least 2 organizations in the nuclear industry with 
developed processes. The ERB process shall be included as a topic in 
the training developed in Section B.1.
    (b) Each ERB shall be comprised of management personnel, including 
legal and/or human resources participation. The ERB shall be informed 
of any known relevant protected activity engaged in by the subject 
employee, including via the Employee Concerns Program (ECP), but ECP 
personnel shall not be a participating member of the ERB.
    (c) Upon request, CB&I shall make available copies of the ERB 
process and procedure, including documentation of ERB decisions made 
after the Confirmatory Order, to the NRC. CB&I shall maintain 
documentation of each ERB decision for a minimum of 5 years.
    (d) By no later than December 31, 2014, willful violations of NRC 
regulations and deliberate misconduct will be added to ERB tracking as 
part of the safety culture monitoring and oversight program scope.
    2. By no later than March 31, 2014, CB&I shall develop and maintain 
a single Employee Concerns Program (ECP) for all CB&I employees.
    (a) The ECP, including position descriptions, shall be informed by 
benchmarking at least 2 organizations in the nuclear industry with 
developed processes.
    (b) The ECP Functional Manager will report to the Vice President, 
Nuclear Safety for these activities, with day-to-day reporting and 
oversight by the Director of Nuclear Compliance.
    (c) ECP personnel shall receive appropriate training, including 
investigative techniques.
    (d) By no later than September 30, 2014, ECP effectiveness reports 
and assessments shall include all instances of willful violations of 
NRC regulations and deliberate misconduct discovered by, or otherwise 
made known to, ECP personnel.
    3. CB&I shall develop and maintain individual performance appraisal 
assessment criteria for individual supervisor's appraisals to evaluate 
if these individuals are meeting CB&I's expectations with regards to 
employee protection, Nuclear Safety Culture and Safety Conscious Work 
Environment. Implementation will begin in the performance appraisal 
cycle in the year following completion of the supervisory training in 
B.2 above.
    4. CB&I shall enhance or establish, where applicable, an active CAP 
trending process to include the ability to trend root and contributing 
causes related to CB&I's nuclear safety culture and incorporate 
trending information in an NEI 09-07 like process; implementation will 
begin in concert with the implementation of the activities as described 
in C.7. By no later than September 30, 2014, CB&I's CAP shall have the 
ability to trend procedure-related issues and violations. Any trends in 
wrongdoing identified through ECP and ERB monitoring shall be entered 
into the Corrective Action Program.
    5. By no later than March 31, 2014, CB&I shall develop and 
implement a process by which personnel engaged in work associated with 
NRC-regulated activities departing the company are given the 
opportunity to participate in an Employee Concerns Program (ECP) Exit 
Interview/Survey to facilitate identification of nuclear safety issues, 
resulting trends and conclusions. These assessments and any actions 
resulting from the exit interviews shall be made available to the NRC 
for review upon request. By no later than September 30, 2014, the ECP 
exit interview process shall include content related to willful 
violations of NRC regulations and deliberate misconduct.
    6. CB&I shall maintain a toll-free anonymous reporting service 
manned by an independent company for use by all its employees to raise 
nuclear safety and quality concerns.
    7. By no later than March 31, 2014, CB&I shall establish and 
maintain a nuclear safety culture oversight program, including one or 
more committees advised by external consultants with extensive nuclear 
experience. This program will provide input to CB&I facility and site 
management as described below.
    (a) The Program will assess at least twice a year the nuclear 
safety culture trends in process inputs that could be early indications 
of a nuclear safety culture weakness.
    (b) The Program shall be informed by NEI's 09-07 guidance and by 
benchmarking at least 2 organizations in the nuclear industry with 
developed processes.
    (c) The Program shall be directed by the Vice President Nuclear 
Safety/Nuclear Safety Officer who shall oversee actions as appropriate.
    (d) By no later than September 30, 2014, the identification and 
tracking of willful violations of NRC regulations and deliberate 
misconduct shall be incorporated into the safety culture oversight 
monitoring program.
    8. By no later than October 31, 2014, CB&I shall enter the 
conditions associated with the wrongdoing event described in the NRC's 
February 20, 2014, letter into its CAP, characterized as a significant 
condition adverse to quality (SCAQ), and complete a root cause 
analysis. CB&I shall evaluate the potential for similar issues at other 
CB&I nuclear facilities and, if appropriate, initiate additional 
corrective actions to address the cause of the wrongdoing.
    9. By September 30, 2014, CAP guidance shall be revised as needed 
to ensure future wrongdoing events are evaluated to determine if they 
are SCAQ and require a root cause analysis. Wrongdoing-related SCAQs 
will be reviewed for applicability at other CB&I nuclear-related 
facilities.
    10. By September 30, 2014, CB&I shall revise applicable procedures 
on procedure use and adherence to reinforce the requirements of 10 CFR 
52.6. Specifically, CB&I shall ensure that the ``Roles and 
Responsibilities'' section clearly articulates: (1) the use and purpose 
of an individual's signature; (2) that procedural requirements are 
expected to be met; and (3) that complete and accurate information is 
to be documented. Additionally, the ``Roles and Responsibilities'' 
section of the procedure shall include a warning about the significance 
of falsification of documents in relation to nuclear safety and 
violation of NRC requirements.

[[Page 60511]]

D. Assess and Monitor Nuclear Safety Culture and Safety Conscious Work 
Environment
    1. CB&I had previously established a CB&I Nuclear Safety Officer 
function to address company-wide nuclear safety culture and safety 
conscious work environment activities. The Vice President of Nuclear 
Safety has been assigned the duties of the Nuclear Safety Officer.
    2. By no later than March 31, 2014, CB&I shall hire a third-party, 
independent consultant to perform tailored comprehensive nuclear safety 
culture assessments, including site surveys, of all CB&I nuclear 
business entities not already assessed by a licensee and perform 
assessments or surveys within twelve (12) months to ensure 
effectiveness of the Nuclear Safety Culture and Safety Conscious Work 
Environment programs.
    (a) Follow-up assessments or surveys shall be conducted every 2 
years for a total of 4 years. These future nuclear safety culture 
assessments or surveys shall be comparable to one another to allow for 
effective evaluation of trends.
    (b) CB&I shall make available to the NRC, upon request, the results 
of the assessments or surveys, CB&I's analysis of the trends, results, 
and proposed corrective actions, if any, CB&I will take to address the 
results in order to verify that a healthy nuclear safety culture and 
safety conscious work environment exists at CB&I nuclear business 
entities.
    (c) The results of each assessment or survey and CB&I's plan to 
address the results shall be communicated to employees within three (3) 
months of receiving the assessment/survey results.
    (d) By no later than September 16, 2014, focused questions on 
willful violations of NRC regulations and deliberate misconduct shall 
be incorporated into safety culture assessments.
    3. As committed to in CB&I's May 17, 2013, response to the NRC's 
April 18, 2013, Chilling Effect Letter, CB&I shall:
    (a) By September 20, 2013, perform an independent focused 
assessment to determine if effective programmatic controls are in place 
at CB&I Lake Charles in the following five areas: Control of special 
processes; inspections; personnel training and qualification; 
instructions, procedures, and drawings; and corrective action. The 
assessment team will include, but will not be limited to, 
representatives from Southern Nuclear Operating Company, South Carolina 
Electric and Gas Company, and CB&I Power.
    (b) Evaluate the results of the independent focused assessment and 
take corrective actions as appropriate by October 31, 2013.
    4. As committed to in CB&I's May 17, 2013, response to the NRC's 
April 18, 2013, Chilling Effect Letter, CB&I reviewed the independent 
contractor's 2012 nuclear safety culture assessment report and 
initiated corrective actions, as necessary. The results of this report 
were communicated to the Lake Charles workforce at an all hands meeting 
on July 24, 2013.
E. Other
    1. As committed to in CB&I's May 17, 2013, response to the NRC's 
April 18, 2013, Chilling Effect Letter, CB&I Lake Charles has entered 
the conditions associated with the Chilling Effect Letter into its 
corrective action program, characterized it as a significant condition 
adverse to quality, and completed a root cause analysis. By no later 
than six (6) months after issuance of the Confirmatory Order, CB&I 
shall evaluate the potential for similar issues at other CB&I nuclear 
sites.
    2. By no later than December 31, 2013, CB&I will revise and 
maintain its Code of Corporate Conduct to include a provision stating 
that all employees have the right to raise nuclear safety and quality 
concerns to CB&I, the NRC, and Congress, or engage in any other type of 
protected activity without being subject to disciplinary action or 
retaliation and that no other corporate policy may supersede, limit, or 
otherwise discourage an employee's right to raise a nuclear safety or 
quality concern.
    (a) By no later than December 31, 2014, CB&I shall revise its Code 
of Conduct Policy to incorporate ``Deliberate Misconduct'' requirements 
and its applicability to employees engaged in NRC-regulated activities.
    (b) By no later than March 1, 2015, the new section must be 
included, and explained, in the training conducted in Section IV.B 
above.
    In consideration for the actions and/or initiatives that CB&I 
agrees to undertake, as outlined above, the NRC agrees to the 
following:
    1. The NRC agrees to exercise enforcement discretion and withdraw 
the Notice of Violation and Proposed Imposition of Civil Penalties 
relating to employee protection and the Shaw Code of Conduct (EA-2012-
189).
    2. The NRC agrees to exercise enforcement discretion and not pursue 
a Notice of Violation and Proposed Imposition of Civil Penalties 
relating to violations of 10 CFR 52.4, ``Deliberate misconduct,'' as 
documented in OI Report 2-2011-036 (EA-2013-196).
    3. This Confirmatory Order does not affect other potential 
escalated enforcement actions, including ongoing investigations by the 
NRC's Office of Investigations. However, as part of its deliberations 
and consistent with the philosophy of the Enforcement Policy, Section 
3.3, ``Violations Identified Because of Previous Enforcement Action,'' 
the NRC will consider enforcement discretion for violations with 
similar root causes (i.e., EA-2012-189 and EA-2013-196) that occur 
prior to or during implementation of the corrective actions aimed at 
correcting that specific condition as specified in the Confirmatory 
Order. However, in the event that CB&I does not demonstrate that the 
work environment at its domestic sites and projects has improved as a 
result of the agreed-to corrective actions, the NRC may consider 
escalated enforcement action beyond the base civil penalty as provided 
for in the NRC Enforcement Policy.
    4. Confirmatory Order EA-12-189, dated September 16, 2013, is 
rescinded in its entirety, and is replaced by this Confirmatory Order.
    The Director, OE, may, in writing, relax or rescind any of the 
above conditions upon demonstration by CB&I of good cause.

V

    In accordance with 10 CFR 2.202, CB&I and any other person 
adversely affected by this Order may submit an answer to this Order 
within 30 days of issuance. In addition, any other person adversely 
affected by this Order may request a hearing on this Order within 30 
days of issuance. Where good cause is shown, consideration will be 
given to extending the time to answer or request a hearing. A request 
for extension of time must be directed to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, 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, as amended by 77 FR 46562, August 3, 2012), codified 
in pertinent part at 10 CFR Part 2, Subpart C. 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.

[[Page 60512]]

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 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/getting-started.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 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 through the EIE. 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 (ET) 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, 
any others who wish to participate in the proceeding (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 (866) 672-7640. The 
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m., ET, 
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://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 CB&I requests a hearing, that person shall 
set forth with particularity the manner in which his interest is 
adversely affected by this 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 hearings. If a hearing is held, the issue to be considered 
at such hearing shall be whether this Order should be sustained. 
Pursuant to 10 CFR 2.202(c)(2)(i), any other person adversely affected 
by this Order, may, in addition to demanding a hearing, at the time the 
answer is filed or sooner, move the presiding officer to set aside the 
immediate effectiveness of the Order on the ground that the Order, 
including the need for immediate effectiveness, is not based on 
adequate evidence but on mere suspicion, unfounded allegations, or 
error. 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 30 days from the date of 
issuance of this Order 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 received.

[[Page 60513]]

    An answer or a request for hearing shall not stay the immediate 
effectiveness of this order.

    Dated at Rockville, Maryland, this 25th day of September 2014.

    For the Nuclear Regulatory Commission.
Patricia K. Holahan, Ph.D.,
Acting Director, Office of Enforcement.
[FR Doc. 2014-23939 Filed 10-6-14; 8:45 am]
BILLING CODE 7590-01-P