[Federal Register Volume 81, Number 6 (Monday, January 11, 2016)]
[Notices]
[Pages 1234-1238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00322]


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NUCLEAR REGULATORY COMMISSION

[EA-14-193; NRC-2015-0289]


In the Matter of Northern States Power Company, Minnesota

AGENCY: Nuclear Regulatory Commission.

ACTION: Confirmatory order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) and Northern 
States Power Company, Minnesota, doing business as Xcel Energy, engaged 
in mediation as part of the NRC's Alternative Dispute Resolution 
Program which resulted in a settlement agreement as reflected in the 
Confirmatory Order (CO) related to Xcel Energy. The purpose of the CO 
is to ensure that the licensee restores compliance with NRC 
regulations.

DATES: Effective Date: January 20, 2016

ADDRESSES: Please refer to Docket ID NRC-2015-0289 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this action using 
any of the following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2015-0289. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, 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 
ADAMS Public Documents collection 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: Kenneth Lambert, Region III, U.S. 
Nuclear Regulatory Commission, Lisle, Illinois, 60532; telephone: 630-
810-4376, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Lisle, Illinois this 21st day of December, 2015.

    For the Nuclear Regulatory Commission.
Cynthia D. Pederson,
Regional Administrator.

Attachment--CONFIRMATORY ORDER MODIFYING LICENSE

UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION
In the Matter of
 Docket Nos. 50-263; 72-058
Northern States Power Company, Minnesota License No. DPR-22
(Doing business as Xcel Energy) EA-14-193
Monticello Nuclear Generating Plant

CONFIRMATORY ORDER MODIFYING LICENSE

I.

    Northern States Power Company, Minnesota, doing business as Xcel 
Energy, (Licensee) is the holder of Reactor Operating License No. DPR-
22 issued by the U.S. Nuclear Regulatory Commission (NRC or Commission) 
pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Part 
50 on September 8, 1970, and renewed on November 8, 2006. The license 
authorizes the operation of the Monticello Nuclear Generating Plant 
(Monticello) in accordance with conditions specified therein. The 
facility is located on the Licensee's site in Monticello, Minnesota.
    This Confirmatory Order is the result of an agreement reached 
during an alternative dispute resolution (ADR) mediation session 
conducted on October 15, 2015.

II.

    On December 18, 2013, the NRC Office of Investigations (OI), Region 
III Field Office initiated an investigation (OI Case No. 3-2014-004) to 
determine whether two contractor technicians at the Monticello Nuclear 
Generating Plant deliberately failed to perform nondestructive 
examinations (NDEs) on the Dry Shielded Canisters (DSCs) in accordance 
with procedural requirements, and to determine whether they falsified 
records when recording the NDE results. The results of the 
investigation, completed on November 13, 2014, were sent to Xcel Energy 
in a letter dated July 23, 2015 (ML15203B187). Based on the review of 
the OI investigation report the NRC determined that both contractor 
technicians willfully violated 10 CFR 72.158, ``Control of special 
processes,'' and 10 CFR 72.11, ``Completeness and accuracy of 
information.'' In addition, the NRC determined the licensee violated 
Title 10 CFR 72.154(c),

[[Page 1235]]

``Control of purchased material, equipment, and services.''
    Specifically, on October 17, 2013, an NRC inspector observed, by 
video display, the NDE liquid penetrant testing (PT) of the outer top 
cover plate weld for DSCs being conducted by a contractor technician. 
The inspector believed that the technician failed to comply with 
procedural requirements in conducting the PT. The inspector reviewed 
the procedure, confirmed that the PT was not being performed in 
accordance with the procedure, and notified Monticello management. 
Monticello management and the NDE contractor management reviewed the 
video, and concluded the PT was not performed properly. Upon further 
review, the NRC inspector determined that two contractor NDE 
technicians were involved in performing the PT examinations. These 
individuals were involved with examining a total of 66 welds on six 
DSCs.
    Based on the evidence gathered in the OI investigation, the NRC 
determined that the two NDE contractors deliberately violated NRC 
requirements by failing to perform NDE PT of DSCs, a special process, 
in accordance with procedures by not allowing the developer to dwell 
for the period of time specified in procedure 12751 QP-9.202, Rev. 1, 
``Color Contrast Liquid Penetrant Examination using the Solvent-
Removable Method.'' Their actions caused the licensee to be in 
violation of Certificate of Compliance 1004, Amendment 10, Technical 
Specification 1.2.5, ``DSC Dye Penetrant Tests of Closure Welds,'' 
which was implemented by the procedure, and 10 CFR 72.158, as NDE 
testing, a special process, was not accomplished in accordance with the 
applicable standards and requirements.
    The NRC further determined that the two contractors willfully 
violated NRC requirements by recording false information concerning 
developer dwell times on the PT examination report for each NDE. This 
caused the licensee to be in violation of 10 CFR 72.11(a), which 
requires information required to be maintained by the licensee to be 
complete and accurate in all material respects.
    The NRC also determined the licensee failed to assess the 
effectiveness of the controls of quality by the contractors. 
Specifically, the licensee did not adequately monitor the work of the 
contractors performing PT testing on DSCs No. 11 through 16. This 
caused the licensee to be in violation of 10 CFR 72.154(c), ``Control 
of purchased material, equipment, and services,'' which required, in 
part, that licensees assess the effectiveness of the control of quality 
by contractors and subcontractors at intervals consistent with the 
importance, complexity, and quantity of the product or services.
    In response to the NRC's offer, Xcel Energy requested use of the 
NRC ADR process to resolve differences it had with the NRC. Alternative 
Dispute Resolution is a process in which a neutral mediator with no 
decision-making authority assists the parties in reaching an agreement 
on resolving any differences regarding the dispute. On October 15, 
2015, Xcel Energy and the NRC met in an ADR session mediated by a 
professional mediator, arranged through the Cornell University's 
Institute on Conflict Resolution.

III.

    During the ADR session, a preliminary settlement agreement was 
reached. This Confirmatory Order is issued pursuant to the agreement 
reached during the ADR process. The elements of the agreement, as 
signed by both parties, consisted of the following:
    1. The licensee shall restore compliance to 10 CFR part 72 to DSCs 
11 through 16 within 5 years of the date the NRC takes final action 
upon the September 29, 2015, exemption request pending for DSC 16 
(ML15275A023), or the exemption request is withdrawn, whichever is 
earlier.
    2. Within 180 calendar days of the NRC's final action on the 
docketed exemption request dated September 29, 2015 (ML15275A023), or 
the date the exemption request is withdrawn, whichever is earlier, the 
licensee shall submit a project plan to the Director, Division of 
Nuclear Materials Safety (DNMS), Region III, for returning DSCs 11 
through 16 to compliance to 10 CFR part 72.
    3. Within 180 calendar days after submittal of the DSCs 11 through 
16 project plan, Xcel Energy shall submit a letter to the Director, 
DNMS, Region III, regarding progress under the plan, and any non-
editorial changes to the plan. A letter providing a progress update and 
any non-editorial plan changes shall be provided every 360 calendar 
days thereafter to the Director, DNMS, Region III, until the plan is 
completed.
    4. Within 90 calendar days of the issuance date of the Confirmatory 
Order, Xcel Energy shall evaluate Monticello's dry fuel storage 
procedures and ensure the procedures require direct licensee oversight 
during the entire evolution of each dye penetrant test performed by 
contractors on DSC closure welds.
    5. Within 120 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall ensure and document that all 
first line supervisors and above, who oversee contractors performing 
field work in the Xcel Energy nuclear fleet, review the circumstances 
and lessons learned from the events that gave rise to the Confirmatory 
Order.
    6. Within 360 calendar days of the issuance date of the 
Confirmatory Order, the licensee shall assess and document the 
effectiveness of improvements in oversight of supplemental workers 
(e.g., contractors) in the Xcel Energy nuclear fleet, including the 
actions taken in item 5.
    7. Within 540 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall develop and make a presentation 
based on the facts and lessons learned from the events that gave rise 
to the Confirmatory Order, with emphasis on corrective actions taken as 
a result. Xcel Energy agrees to make this presentation at an 
appropriate industry forum such that industry personnel across the 
entirety of the United States would have the opportunity to receive the 
material. Xcel Energy shall inform the Director, DNMS, Region III, of 
where the presentation will be made, and shall make the presentation 
materials available to the NRC for review at least 30 calendar days in 
advance of the presentation.
    8. Within 360 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall submit an article to an industry 
publication, such as UxC Spent Fuel, describing the circumstances of 
the violation, the root and contributing causes, and the corrective 
actions. The licensee shall provide a draft to the Director, DNMS, 
Region III, at least 30 calendar days in advance of the submittal.
    9. Upon completion of all terms of the Confirmatory Order, Xcel 
Energy shall submit to the NRC a letter discussing its basis for 
concluding that the Order has been satisfied.
    In addition to the elements described above, Xcel Energy took the 
following corrective actions:
    1. Xcel Energy revised its nuclear fleet Nuclear Oversight 
(``NOS'') and Supply Chain procedures to require the establishment of a 
NOS Project Oversight Plan for any Safety-Related or Augmented Quality 
fabrication or construction activities performed at the nuclear plant 
sites under a supplier's Quality Assurance (QA) Program. The NOS 
procedure for project oversight was also revised to address site 
project implementation in addition to project component fabrication, 
and associated project risks. Upfront planning of the level and type 
NOS oversight is based on those risks.

[[Page 1236]]

    2. Xcel Energy created a nuclear fleet procedure for oversight of 
supplemental personnel (e.g., contractors) based upon the Institute of 
Nuclear Power Operations (INPO) AP-930 ``Supplemental Personnel Process 
Description,'' which includes a requirement that each incoming contract 
worker have a face-to-face review of station standards, expectations, 
and requirements with the Maintenance Manager or designee. This 
includes current and all future contract personnel including contract 
quality control (QC) inspectors.
    3. Xcel Energy issued a rapid operational experience notice for 
this event, which prompted a review of the event by Prairie Island 
Nuclear Generating Plant staff and shared the event with the nuclear 
industry through a process called the INPO Consolidated Event System 
(ICES).
    4. Xcel Energy reviewed its General Access Training to ensure it 
addresses the consequences of willful violations.
    In exchange for the commitments and corrective actions taken by the 
licensee, the NRC agrees to the following conditions:
    1. The NRC will consider the Confirmatory Order as an escalated 
enforcement action for a period of one year from its issuance date.
    2. The NRC will refrain from issuing a Notice of Violation and a 
proposed imposition of a civil penalty.
    This agreement is binding upon the successors and assigns of Xcel 
Energy.
    On December 10, 2015, Xcel Energy consented to issuing this 
Confirmatory Order with the commitments, as described in Section V 
below. Xcel Energy further agreed that this Confirmatory Order is to be 
effective 30 calendar days after issuance of the Confirmatory Order and 
that it has waived its right to a hearing.

IV.

    Since the licensee agreed to take additional actions to address NRC 
concerns, as set forth in Section III above, the NRC concluded that its 
concerns can be resolved through issuance of this Confirmatory Order.
    I find that Xcel Energy'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 
Xcel Energy's commitments be confirmed by this Confirmatory Order. 
Based on the above and Xcel Energy's consent, this Confirmatory Order 
is effective 30 calendar days after issuance of the Confirmatory Order.

V.

    Accordingly, pursuant to Sections 104b, 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, 10 CFR part 50 and 10 CFR part 72, IT IS 
HEREBY ORDERED THAT THE ACTIONS DESCRIBED BELOW WILL BE TAKEN AT 
MONTICELLO NUCLEAR GENERATING PLANT AND OTHER NUCLEAR PLANTS IN XCEL 
ENERGY'S FLEET WHERE INDICATED AND THAT LICENSE NO. DPR-22 IS MODIFIED 
AS FOLLOWS WITH RESPECT TO THE ACTIONS TO BE TAKEN AT THE MONTICELLO 
NUCLEAR GENERATING PLANT:
    1. The licensee shall restore compliance to 10 CFR part 72 to DSCs 
11 through 16 within 5 years of the date the NRC takes final action 
upon the September 29, 2015, exemption request pending for DSC 16 
(ML15275A023), or the exemption request is withdrawn, whichever is 
earlier.
    2. Within 180 calendar days of the NRC's final action on the 
docketed exemption request dated September 29, 2015 (ML15275A023), or 
the date the exemption request is withdrawn, whichever is earlier, the 
licensee shall submit a project plan to the Director, Division of 
Nuclear Materials Safety, Region III, for returning DSCs 11 through 16 
to compliance to 10 CFR part 72.
    3. Within 180 days after submittal of the DSCs 11 through 16 
project plan, Xcel Energy shall submit a letter to the Director, DNMS, 
Region III, regarding progress under the plan, and any non-editorial 
changes to the plan. A letter providing a progress update and any non-
editorial plan changes shall be provided every 360 calendar days 
thereafter to the Director, DNMS, Region III, until the plan is 
completed.
    4. Within 90 calendar days of the issuance date of the Confirmatory 
Order, Xcel Energy shall evaluate Monticello's dry fuel storage 
procedures and ensure the procedures require direct licensee oversight 
during the entire evolution of each dye penetrant test performed by 
contractors on DSC closure welds.
    5. Within 120 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall ensure and document that all 
first line supervisors and above, who oversee contractors performing 
field work in the Xcel Energy nuclear fleet, review the circumstances 
and lessons learned from the events that gave rise to the Confirmatory 
Order.
    6. Within 360 calendar days of the issuance date of the 
Confirmatory Order, the licensee shall assess and document the 
effectiveness of improvements in oversight of supplemental workers 
(e.g., contractors) in the Xcel Energy nuclear fleet, including the 
actions taken in item 5.
    7. Within 540 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall develop and make a presentation 
based on the facts and lessons learned from the events that gave rise 
to the Confirmatory Order, with emphasis on corrective actions taken as 
a result. Xcel Energy agrees to make this presentation at an 
appropriate industry forum such that industry personnel across the 
entirety of the United States would have the opportunity to receive the 
material. Xcel Energy shall inform the Director, DNMS, Region III, of 
where the presentation will be made, and make the presentation 
materials available to the NRC for review at least 30 calendar days in 
advance of the presentation.
    8. Within 360 calendar days of the issuance date of the 
Confirmatory Order, Xcel Energy shall submit an article to an industry 
publication, such as UxC Spent Fuel, describing the circumstances of 
the violation, the root and contributing causes, and the corrective 
actions. The licensee shall provide a draft to the Director, DNMS, 
Region III, at least 30 calendar days in advance of the submittal.
    9. Upon completion of all terms of the Confirmatory Order, Xcel 
Energy shall submit to the NRC a letter discussing its basis for 
concluding that the Order has been satisfied.
    The Regional Administrator, Region III, may, in writing, relax or 
rescind any of the above conditions upon demonstration by the Licensee 
of good cause.

VI.

    Any person adversely affected by this Confirmatory Order, other 
than Xcel Nuclear, may request a hearing within 30 days of the issuance 
date of this Confirmatory Order. 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 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

[[Page 1237]]

accordance with the NRC's 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. 
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 (1) request 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.html. System requirements for accessing the E-Submittal 
server are detailed in NRC's ``Guidance for Electronic Submission,'' 
which is available on the agency's public Web site at http://www.nrc.gov/site-help/e-submittals.html. Participants may attempt to 
use other software not listed on the Web site, but should note that the 
NRC's E-Filing system does not support unlisted software, and the NRC 
Meta System Help Desk will not be able to offer assistance in using 
unlisted software.
    If a participant is electronically submitting a document to the NRC 
in accordance with the E-Filing rule, the participant must file the 
document using the NRC's online, Web-based submission form. In order to 
serve documents through the Electronic Information Exchange (EIE), 
users will be required to install a Web browser plug-in from the NRC 
Web site. Further information on the Web-based submission form, 
including the installation of the Web browser plug-in, is available on 
the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html.
    Once a participant has obtained a digital ID certificate and a 
docket has been created, the participant can then submit a request for 
hearing or petition for leave to intervene through the EIE. 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 (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'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, 
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 NRC'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 (866) 672-7640. The 
NRC Meta System Help Desk is available between 8:00 a.m. and 8:00 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 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, participants are requested not to include 
copyrighted materials in their submission, except for limited excerpts 
that serve the purpose of the adjudicatory filings and would constitute 
a Fair Use application.
    If a person other than the licensee 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 a separate Order designating the 
time and place of any hearings, as appropriate. 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 30 days after issuance of 
the Confirmatory Order without further order or proceedings. If an 
extension of timefor 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.


[[Page 1238]]


    Dated at Lisle, Illinois this 21st day of December, 2015.

For the Nuclear Regulatory Commission.
Cynthia D. Pederson
Regional Administrator.
[FR Doc. 2016-00322 Filed 1-8-16; 8:45 am]
BILLING CODE 7590-01-P