IR 05000269/2006402

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DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLED December 28, 2006Duke Power Company, LLC d/b/a Duke Energy Carolinas, LLC (Duke)

ATTN:Mr. Bruce H. HamiltonVice President Oconee Site7800 Rochester Highway Seneca, SC 29672

SUBJECT: OCONEE NUCLEAR STATION - NRC SUPPLEMENTAL INSPECTIONREPORT NO. 05000269/2006402, 05000270/2006402 AND 05000287/2006402

Dear Mr. Hamilton:

On November 30, 2006, the US Nuclear Regulatory Commission (NRC) completed asupplemental inspection pursuant to Inspection Procedure 95001 at your Oconee Nuclear Station to follow up on previous security inspection findings. The enclosed inspection report documents the inspection results, which were discussed at the exit meeting on November 30, 2006, with you and other members of your staff. The NRC was informed of your readiness for this inspection on September 28, 2006.The purpose of this supplemental inspection was to examine your problem identification, rootcause and extent-of-condition evaluation, and corrective actions associated with a White finding in the Physical Protection cornerstone. The White finding involved the failure to identify and search two packages that resulted in eleven handguns entering the Protected Area without authorization on February 13, 2006. The inspection examined activities conducted under your license as they relate to safety and compliance with the Commission's rules and regulations and with the conditions of your license. The inspector reviewed selected procedures and records, observed activities, and interviewed personnel.Based on the results of this inspection, we have concluded that your root cause evaluation wasadequate and effectively identified the root cause and contributing cause for this event. The completed and proposed corrective actions, including actions to prevent recurrence, appropriately addressed the results of your root cause evaluation and your implementation schedule was consistent with the overall significance of the event. As such, the inspection objectives of Inspection Procedure 95001, "Inspection For One Or Two White Inputs In A DOCUMENT CONTAINS DPC2DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLEDStrategic Performance Area," have been satisfied. Given your acceptable performance inaddressing the problems associated with this issue, it will only be considered in assessing plantperformance for a total of four quarters in accordance with Inspection Manual Chapter (IMC) 0320, "Operating Reactor Security Assessment Program."No findings of significance were identified during this inspection.

In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will beavailable electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system, ADAMS. ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Publicelectronic Reading room). However, because of security-related concerns contained in the enclosure, and in accordance with 10 CFR 2.390 a copy of this letter's 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 foryour 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 NRC's 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/Joel T. Munday, ChiefPlant Support Branch 2 Division of Reactor SafetyDocket Nos.:50-269, 50-270, 50-287License Nos.:DPR-38, DPR-47, DPR-55

Enclosure:

NRC Inspection Report 05000269/2006402, 05000270/2006402 and 05000287/2006402 w/Attachment : Supplemental Information(Safeguards Information)cc w/encl: (See page 3)

DOCUMENT CONTAINS DPC3DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLEDcc w/encl:B. G. Davenport Compliance Manager (ONS)

Duke Power Company LLC d/b/a Duke Energy Carolinas, LLC ON03RC 7800 Rochester Highway Seneca, SC 29672cc w/o encl:Lisa F. Vaughn Associate General Counsel and Managing Attorney Duke Energy Carolinas, LLC 526 South Church Street - EC07H Charlotte, NC 28202Kathyrn B. NolanSenior Counsel Duke Energy Carolinas, LLC 526 South Church Street - EC07H Charlotte, NC 28202David A. RepkaWinston & Strawn LLP 1400 L Street, NW Washington, D. C. 20005Beverly Hall, Chief, RadiationProtection Service N. C. Department of Environmental Health & Natural Resources 3825 Barrett Drive Raleigh, NC 27609-7721(cc w/o encl cont'd - See page 4)

DOCUMENT CONTAINS DPC4DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLED(cc w/o encl cont'd)Henry J. Porter, Assistant Director Div. of Radioactive Waste Mgmt.

S. C. Department of Health and Environmental Control 2600 Bull Street Columbia, SC 29201County Supervisor of Oconee County 415 S. Pine Street Walhalla, SC 29691-2145Lyle Graber, LISNUS Corporation 2650 McCormick Drive Clearwater, FL 34619-1035R. L. Gill, Jr., ManagerNuclear Regulatory Issues and Industry Affairs Duke Power Company LLC.

d/b/a Duke Energy Carolinas, LLC 526 S. Church Street Charlotte, NC 28201-0006Peggy ForceAssistant Attorney General N. C. Department of Justice P. O. Box 629 Raleigh, NC 27602Charles BrinkmanDirector, Washington Operations Westinghouse Electric Company 12300 Twinbrook Parkway, Suite 330 Rockville, MD 20852Distribution w/encl: (See page 5)

DOCUMENT CONTAINS DPC5DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLEDDistribution w/encl:B. Westreich, NSIR E. McNiel, NSIRDistribution w/o encl:L. Olshan, NRR RIDSNRRDIRS PUBLIC DOCUMENT CONTAINS DPC2DOCUMENT CONTAINS ENCLOSURE CONTAINS UPON SEPARATION THISPAGE IS DECONTROLLEDStrategic Performance Area," have been satisfied. Given your acceptable performance in addressing the problems associated with this issue, it will only be considered in assessing plantperformance for a total of four quarters in accordance with Inspection Manual Chapter (IMC) 0320, "Operating Reactor Security Assessment Program."No findings of significance were identified during this inspection.

In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will beavailable electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system, ADAMS. ADAMS is accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html (the Publicelectronic Reading room). However, because of security-related concerns contained in the enclosure, and in accordance with 10 CFR 2.390 a copy of this letter's 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 foryour 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 NRC's 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/

Joel T. Munday, ChiefPlant Support Branch 2 Division of Reactor SafetyDocket Nos.:50-269, 50-270, 50-287License Nos.:DPR-38, DPR-47, DPR-55

Enclosure:

NRC Inspection Report 05000269/2006402, 05000270/2006402 and 05000287/2006402 w/Attachment : Supplemental Information(Safeguards Information)cc w/encl: (See page 3)

• ) - SEE PREVIOUS PAGE FOR CONCURRENCEOFFICERII:DRSRII:DRSRII:DRPSIGNATURERARARA *NAMEJSHEHEEJMUNDAYJMOORMANDATE12/28 /0612/28/0612/27/06 E-MAIL COPY? YESNO YESNO YESNO YESNO YESNO YESNO YESNO PUBLIC DOCUMENT YESNO C:\FileNet\ML063620540.wpd