Information Notice 1991-09, Counterfeiting of Crane Valves
| ML072500391 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde, River Bend, Diablo Canyon, South Texas, San Onofre, Comanche Peak  |
| Issue date: | 09/25/2007 |
| From: | Michael Case NRC/NRR/ADRA/DPR |
| To: | |
| References | |
| IN-91-009, Rev. 1 | |
| Download: ML072500391 (5) | |
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR REACTOR REGULATION
WASHINGTON, D.C. 20555
September 25, 2007
NRC INFORMATION NOTICE 1991-09, REV. 1: COUNTERFEITING OF CRANE VALVES
ADDRESSEES
All holders of operating licenses or construction permits for nuclear power reactors.
PURPOSE
The U.S. Nuclear Regulatory Commission (NRC) is re-issuing this information notice (IN) to
correct IN 1991-09, Counterfeiting of Crane Valves, which was issued on February 5, 1991, to
alert licensees to potential problems with counterfeit valves. This revision supersedes the
original IN in its entirety. It is expected that recipients will review this information for applicability
to their facilities and consider action, as appropriate, to avoid similar problems. However, suggestions contained in this IN do not constitute NRC requirements; therefore, no specific
action or written response is required.
DESCRIPTION OF CIRCUMSTANCES
As a result of information obtained from officials of the U.S. Customs office, and as documented
in the Settlement Agreements resulting from a civil suit brought by the Crane Company and
settled out of court in October 1987, it was determined that counterfeit Crane Company (Crane)
valves were sold to an Atlantic Richfield Company (ARCO) chemical plant near Houston, Texas.
The NRC was informed that ARCO ordered eight 4-inch, 1500-psi, pressure-sealed Crane
valves from the Baytown Supply Co. (Baytown). Baytown ordered the valves from International
Valve Service, Inc. (International), and International ordered the valves from Southern California
Valve Maintenance Company (SCV).
SCV had the valves manufactured in Taiwan. Upon arrival in the United States, the valves bore
the mark SCV. The valves were sent to the Amesse Welding Service (Amesse) where the
name Crane was apparently welded to each valve body.
The valves failed pressure testing performed by ARCO before installation. During the testing, ARCO found newspapers printed with Chinese characters in the valves. An expert on Crane
valves examined the valves and identified them as counterfeit. Six of the valves were repaired
and used by ARCO. The remaining two valves that could not be repaired were returned to SCV.
IN 1991-09, Rev. 1 The NRC verified that the following nuclear power plants did not have SCV, Baytown, or
International on their approved vendor lists: Comanche Peak, River Bend, South Texas Project, Waterford, Palo Verde, and Diablo Canyon. These power plants were selected because they
were located close to one of the three companies listed above and may have done business with
them. Southern California Edison did have a contract with SCV to maintain and repair valves at
the San Onofre Nuclear Generating Station, but has concluded that its established internal work
assignment and control procedures provided adequate assurance of the work performed by
SCV. The NRC does not have any direct evidence that SCV, Baytown, or International provided
counterfeit valves to the U.S. nuclear power industry or violated any NRC regulations.
DISCUSSION
The NRC determined that the SCV list of customers who purchased Crane valves, appended as
Attachment 1, contained numerous vendors that are also on the list of purchasers/suppliers of
CMA International (CMA) of Vancouver, Washington. CMA is the subject of IN No. 88-48, Licensee Report of Defective Refurbished Valves. The inclusion of a company on the SCV
customer list does not mean that the company knowingly or unknowingly supplied counterfeit or
fraudulent products. It should also be noted that SCV was listed as a possible customer of
CMA, through whom licensees may have purchased valves supplied by CMA, as noted in
Attachment 1 to Supplement 2 of IN No. 88-48. Licensees may wish to review the list of SCV
customers in Attachment 1 to confirm the acceptability of procured equipment.
A valve can go through two or more distributors before reaching the end-user facility. A nuclear
power plant could buy a commercial-grade valve from a valve distributor for the purpose of
dedicating the valve for safety-related use. The establishment and verification of procedures to
trace procured equipment and material to the original equipment manufacturer is often an
important prerequisite to meaningful inspection and testing which may be employed in the
dedication process. Inadequate licensee verification of traceability of procured equipment may
result in counterfeit or fraudulent equipment being installed.
This IN requires no specific action or written response. If you have any questions about this
matter, please contact the technical contact listed below or the appropriate NRR project
manager.
IN 1991-09, Rev. 1
CONTACT
This IN requires no specific action or written response. Please direct any questions about this
matter to the technical contact listed below or the appropriate NRR project manager.
/RA by TQuay for/
Michael J. Case, Director
Division of Policy and Rulemaking
Office of Nuclear Reactor Regulation
Technical Contact:
Samir Darbali, NRR/DPR
301-415-1360
e-mail: sxd7@nrc.gov
Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.
Attachment:
1. List of Customers Who Purchased Crane Valves from Southern
California Valve Maintenance
IN 1991-09, Rev. 1
CONTACT
This IN requires no specific action or written response. Please direct any questions about this
matter to the technical contact listed below or the appropriate NRR project manager.
/RA by TQuay for/
Michael J. Case, Director
Division of Policy and Rulemaking
Office of Nuclear Reactor Regulation
Technical Contact:
Samir Darbali, NRR/DPR
301-415-1360
e-mail: sxd7@nrc.gov
Note: NRC generic communications may be found on the NRC public Web site, http://www.nrc.gov, under Electronic Reading Room/Document Collections.
Attachment:
1. List of Customers Who Purchased Crane Valves from Southern
California Valve Maintenance
Distribution:
IN Reading File
ADAMS Accession Number: ML072500391 OFFICE
PGCB:DPR
TECH EDITOR
EQVB:DE
NAME
SDarbali
LCulp
PPrescott* for DThatcher
Beth Mizuno*
DATE
9/11/07
9/12/07
9/14/07
9/13/07
OFFICE
LA:PGCB:DPR
PGCB:DPR
BC:PGCB:DPR
D:DPR
NAME
CHawes
DBeaulieu
MMurphy
TQuay for MCase
DATE
9/13/07
9/17/07
9/24/07
9/25/07
- With comments that have been incorporated
OFFICIAL RECORD COPY
ATTACHMENT 1 IN 1991-09, Rev. 1 CUSTOMERS WHO PURCHASED CRANE VALVES FROM
SOUTHERN CALIFORNIA VALVE MAINTENANCE
AMFAC
Neilson
AMANS, W.F.
Palmeroy, J.H.
Bay Valve
P.E. OHair
B&M Trading
Piping Specialities
BHF
PITT, Norman
B&L Valve
R&D Valve
Bel Kal
Republic Supply
Berg Dorf
Roper Detroit
Burney Valve
Santa Maria Oil Field
Calatex
S. Central Valve
Crown Industrial
Supply Specialties
Flickenger
Valve Services
Grant Supply
Wallace, James
G.V.S.
Weslo Corp.
Illinois Valve
ARA Valve
Industrial Valve
Demenno/Kerdoon
International Valve
Floor Drilling
L.A. Valve Proc.
Nielson Valve
Jackson/Marcus
Petro Valve
Laundry Specialties
Phoenix Valve
M&N Valve
Union Oil
McCoy, Fred
Western Valve
Moody Olstad
The inclusion of a company on this list does not mean that the company
knowingly or unknowingly supplied counterfeit or fraudulent products.