[Federal Register Volume 64, Number 26 (Tuesday, February 9, 1999)]
[Notices]
[Pages 6386-6387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3096]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 72-1007, EA 98-529]
March Metalfab, Inc., Hayward, California; Confirmatory Order
Prohibiting Involvement in NRC-Licensed Activities (Effective
Immediately)
I
March Metalfab, Inc. (MMI) is a subcontractor of Sierra Nuclear
Corporation (SNC), which holds NRC Certificate of Compliance 72-1007
for the VSC-24 cask, used by general licensees, Palisades Nuclear Plant
(PNP) and Arkansas Nuclear One (ANO). The general license (10 CFR
72.210) relied on by PNP and ANO is for the storage of spent nuclear
fuel under 10 CFR part 72.
II
In March 1995, PNP loaded spent fuel into a multi-assembly sealed
basket (MSB) spent fuel cask that had been supplied by SNC and
fabricated by MMI. When the cask was pressurized with helium, two leaks
were identified in the wall of the MSB adjacent to the closure weld.
Subsequent analysis by PNP metallurgical personnel determined that the
defects were caused by underbead or hydrogen cracking, resulting from a
base metal weld repair to the MSB shell inner wall that was performed
during MSB manufacturing. The NRC staff learned of the problem
experienced by PNP as a result of inspection activities following a
similar closure weld failure at ANO. The staff became concerned that
undetected cracks in other MSBs, produced by SNC that were already
loaded with spent fuel, could propagate while the casks were in
storage, affecting the integrity of the cask confinement boundary. As a
result, during the week of March 17-21, 1997, a special inspection was
conducted at SNC and MMI.
During the special inspection, five MMI employees who were
considered most likely to have been aware of the fabrication activities
during the manufacture of the MSBs that failed were interviewed. They
included two managers, the Project Manager and the Quality Assurance
(QA) Manager. All of the individuals interviewed denied having any
knowledge of any undocumented or unauthorized welds or weld repairs
during the manufacture of the MSBs.
In July 1997, the NRC conducted a further inspection of MMI and
SNC. During that inspection, employees of both companies acknowledged
that undocumented welds had been made on casks sold to ANO and PNP. In
the course of this inspection, both the Project Manager and the QA
Manager for MMI admitted that they were aware that repair welding had
been performed on the inside of the MSBs during fabrication and that
they had not informed the NRC inspectors of those welds during the
March 1997 inspection interviews. The NRC continued to investigate the
matter and the Office of Investigations issued its report on October
16, 1998.
The NRC has concluded that because the two managers were
knowledgeable about the fabrication process and were aware that welding
had been done on the insides of the MSBs, they deliberately made
statements in March 1997 to SNC and to the NRC that were inaccurate
concerning the internal welding. The information involved was material
to the NRC's understanding as to the quality of the MSBs and delayed
the NRC's action to ensure integrity of MSBs. As a result, the NRC has
further concluded that in providing the information, MMI violated 10
CFR 72.11, ``Completeness and Accuracy of Information'' and 10 CFR
72.12, ``Deliberate Misconduct.'' The NRC believes that the
circumstances of this matter raise questions as to MMI's willingness to
comply with Commission requirements. MMI has not admitted that a
violation occurred.
[[Page 6387]]
III
In a telephone call on December 7, 1998, MMI agreed to issuance of
a Confirmatory Order prohibiting MMI from engaging in NRC-licensed
activities for a period of five years from the date that the Order is
issued. The staff believes that such a prohibition will adequately
protect the public health and safety and, therefore, finds this
acceptable. MMI requested that if the Order is issued, it be allowed to
complete work on one small existing contract to supply 10 plug
assemblies for a NUHOMS cask. This provision is acceptable, as the
assemblies have a limited safety function that can be verified by
measurement at the time of use. On January 6, 1999, the staff forwarded
to MMI a copy of the factual basis of the proposed order and the
implementation paragraph. On January 10, 1999, MMI consented to the
issuance of the order with those provisions and waived its rights to a
hearing on this action.
I find that MMI'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 MMI's commitments be confirmed by this Order. Based on the above
and MMI's consent to this action, this Order is immediately effective
upon issuance.
IV
Accordingly, pursuant to sections 53, 161b, 161i, 161o, 182 and 186
of the Atomic Energy Act of 1954, as amended, and the Commission's
regulations in 10 CFR 2.202, 10 CFR part 72, and 10 CFR 72.12, it is
hereby ordered, effective immediately, as follows:
A. Except as noted in paragraph B, MMI is prohibited for five years
from the date of this Order from any involvement in NRC-licensed
activities. For purposes of this Order, licensed activities include
providing or supplying, whether directly to NRC licensees or
Certificate of Compliance holders, or as a contractor or subcontractor
to a licensee or Certificate of Compliance holder, structures, systems,
or components, subject to a procurement contract specifying compliance
with 10 CFR Ch. I.
B. Provided that MMI notifies Transnuclear West, the Certificate of
Compliance holder for the NUHOMS cask, of the existence of this Order,
MMI may complete work on the contract that was entered into prior to
the date of this order to fabricate a total of 10 plug assemblies for a
NUHOMS cask.
The Director, Office of Enforcement, may relax or rescind, in
writing, any of the above conditions upon a showing by the Licensee of
good cause.
V
Any person adversely affected by this Confirmatory Order, other
than MMI, may request a hearing within 20 days of its issuance. Where
good cause is shown, consideration will be given to extending the time
to request a hearing. A request for extension of time must be made in
writing to the Director, Office of Enforcement, U.S. Nuclear Regulatory
Commission, Washington, DC 20555, and include a statement of good cause
for the extension. Any request for a hearing shall be submitted to the
Secretary, U.S. Nuclear Regulatory Commission, ATTN: Rulemakings and
Adjudications Staff, Washington, DC 20555. Copies also shall be sent to
the Director, Office of Enforcement, U.S. Nuclear Regulatory
Commission, Washington, DC 20555, to the Deputy Assistant General
Counsel for Enforcement, and to the Director, Office of Nuclear
Materials Safety and Safeguards, at the same address, and to Sierra
Nuclear Corporation. If such a person requests a hearing, that person
shall set forth with particularity the manner in which his or her
interest is adversely affected by this Order and shall address the
criteria set forth in 10 CFR 2.714(d).
If a hearing is requested by a person whose interest is adversely
affected, the Commission will issue an Order designating the time and
place of any hearing. If a hearing is held, the issue to be considered
at such hearing shall be whether this Confirmatory Order should be
sustained.
In the absence of any request for hearing, or written approval of
an extension of time in which to request a hearing, the provisions
specified in Section IV above shall be final 20 days from the date 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.
Dated this 27th day of January 1999.
For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 99-3096 Filed 2-8-99; 8:45 am]
BILLING CODE 7590-01-P
