IR 05000528/2013407

IR 05000528-13-407, 05000529-13-407 and 05000530-13-407, on 10/25/13, Palo Verde Nuclear Generating Station, Units 1, 2, and 3, NRC Material Control and Accounting Program Inspection Report

ML13338A755
Person / Time
Site:	Palo Verde
Issue date:	12/04/2013
From:	James Drake NRC/RGN-IV/DRS/PSB-2
To:	Edington R Arizona Public Service Co
References
IR-13-407
Download: ML13338A755 (3)

Text

December 4, 2013

SUBJECT:

PALO VERDE NUCLEAR GENERATING STATION, UNITS 1, 2, AND 3 -

NRC MATERIAL CONTROL AND ACCOUNTING PROGRAM INSPECTION REPORT 05000528/2013407, 05000529/2013407 AND 05000530/2013407

Dear Mr. Edington:

On October 25, 2013, the U.S. Nuclear Regulatory Commission (NRC) completed a security baseline inspection at your Palo Verde Nuclear Generating Station, Units 1, 2, and 3. The inspection covered the material control and accounting of special nuclear material attribute of the security cornerstone of the NRCs Reactor Oversight Process. The enclosed inspection report documents the inspection results, which were discussed on October 25, 2013, with Mr. R. Bement, Vice President, Nuclear Operations and staff, and on November 7, 2013, with Mr. M. McGhee, Section Leader, Regulatory Affairs, and other members of your staff.

The inspection examined activities conducted under your license as they relate to security and compliance with the Commissions rules and regulations and with the conditions of your license.

The inspectors reviewed selected procedures and records, observed activities, and interviewed personnel.

During this inspection, the NRC identified one finding of very low security significance (i.e., Green as determined by the Physical Protection Significance Determination Process). This finding had two examples of violations of NRC requirements associated with 10 CFR 74.19.

Your staff entered this matter into the corrective action program to revise aspects of your material control and accounting of special nuclear material (MC&A-SNM) program to conform inventory methods approaches deemed acceptable by the NRC. At the conclusion of this inspection, Palo Verde was still in non-compliance with applicable security requirements within the scope of this MC&A-SNM inspection.

In addition, this finding had a cross-cutting aspect in the area of Problem Identification and Resolution related to the component of Operating Experience because your staff did not implement and institutionalize industry lessons learned to support safety through changes in SNM-MC&A methods, processes, and procedures (P2.b). Because the finding was of very low UNITED STATES NUCLEAR REGULATORY COMMISSION RE G IO N I V 1600 EAST LAMAR BLVD ARLINGTON, TEXAS 76011-4511 safety significance and was entered into your corrective action program, the NRC is treating this finding as a non-cited violation consistent with Section 2.3.2 of the NRC Enforcement Policy.

If you contest this non-cited violation or its significance, you should provide a response within 30 days of the date of this inspection report, with the basis for your denial, to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington D.C. 20555-0001; with copies to the Regional Administrator, U.S. Nuclear Regulatory Commission Region IV,1600 E.

Lamar Blvd, Arlington, Texas 76011-4005; the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D. C. 20555-001; and the NRC Resident Inspector at the Palo Verde Nuclear Generating Station. In addition, if you disagree with the characterization of any finding in this report, you should provide a response within 30 days of the date of this inspection report, with the basis for your disagreement, to the Regional Administrator, Region IV, and the NRC Resident Inspector at the Palo Verde Nuclear Generating Station. The information you provide will be considered in accordance with Inspection Manual Chapter 0305.

In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will be available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records component of NRCs document system, (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Public Electronic Reading Room). However, because of the security-related concerns contained in the enclosure, and in accordance with 10 CFR 2.390, a copy of this letters enclosure will not be available for public inspection.

In accordance with 10 CFR 2.390(b)(1)(ii), the NRC is waiving the affidavit requirements for your response, if any. This practice will ensure that your response will not be made available electronically for public inspection in the NRC Public Document Room or from the NRCs document system, ADAMS. If Safeguards Information is necessary to provide an acceptable response, please provide the level of protection described in 10 CFR 73.21. Otherwise, mark your entire response "Security-Related Information-Withhold Under 10 CFR 2.390" and follow the instructions for withholding in 10 CFR 2.390(b)(1).

Sincerely,

/RA/ Isaac A. Anchondo for

James F. Drake, Chief

Plant Support Branch 2

Division of Reactor Safety

Docket Nos.: 50-528; 50-529; 50-530 License Nos.: NPF-41; NPF-51; NPF-74

Nonpublic Enclosure:

NRC Inspection Report 05000528/2013407, 05000529/2013407 and 05000530/2013407 w/Attachment:

Supplemental Information

cc w/enclosure:

Electronic Distribution for Palo Verde Nuclear Generating Station Cover Letter Only SUNSI Review Non Sensitive Sensitive Publicly Available LCC2 Non-Publicly Available KEYWORD: SUNSI Review Complete

Entire Report SUNSI Review Non Sensitive Sensitive Publicly Available LCC2 Non-Publicly Available KEYWORD: MD 3.4 Non-Public A.3

SHP:PSB2

C:PBD C:PSB2 LCCarson II

RELantz JFDrake

/RA/

/RA/

/RA/ IAA for 11/29/13

12/3/13 12/4/13 OFFICIAL COPY T=Telephone E=E-Mail F=FAX ADAMS ACCESSION NUMBER: ML13338A755