[Federal Register Volume 87, Number 22 (Wednesday, February 2, 2022)]
[Notices]
[Pages 5867-5874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02068]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-219; License No. DPR-16; EA-21-041; NRC-2022-0034]
In the Matter of Holtec Decommissioning International, LLC;
Oyster Creek Nuclear Generating Station
AGENCY: Nuclear Regulatory Commission.
ACTION: Confirmatory order; issuance.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a
Confirmatory Order to Holtec Decommissioning International, LLC (HDI)
to memorialize the agreement reached during an alternative dispute
resolution mediation session held on October 14, 2021. This Order will
resolve any issues identified during an NRC inspection and
investigation related to a (now-former) training superintendent at
Oyster Creek Nuclear Generating Station (Oyster Creek), who was also
responsible for performing armorer duties, and who deliberately failed
to perform firearms maintenance activities and falsified records
related to those activities. The Order includes a number of significant
actions HDI has agreed to take that are expected to improve HDI's
security performance at Oyster Creek and other sites in its fleet. The
Confirmatory Order is effective upon issuance.
DATES: The confirmatory order was issued on January 26, 2022.
ADDRESSES: Please refer to Docket ID NRC-2022-0034 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly available information related to this document
using any of the following methods:
Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2022-0034. Address
questions about Docket IDs in Regulations.gov to Stacy Schumann;
telephone: 301-415-0624; 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 obtain publicly available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, 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 Confirmatory Order to Oyster
Creek Nuclear Generating Station is available in ADAMS under Accession
No. ML21362A447.
NRC's PDR: You may examine and purchase copies of public
documents, by appointment, at the NRC's PDR, Room P1 B35, One White
Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. To make
an appointment to visit the PDR, please send an email to
[email protected]
[[Page 5868]]
or call 1-800-397-4209 or 301-415-4737, between 8:00 a.m. and 4:00 p.m.
(ET), Monday through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Marjorie M. McLaughlin, Region I, U.S.
Nuclear Regulatory Commission, 2100 Renaissance Blvd., King of Prussia,
PA 19140; telephone: 610-337-5240, email: [email protected].
SUPPLEMENTARY INFORMATION: The text of the Order is attached.
Dated: January 27, 2022.
For the Nuclear Regulatory Commission.
Raymond K. Lorson,
Deputy Regional Administrator, NRC Region I.
Attached--Confirmatory Order
United States of America
Nuclear Regulatory Commission
In the Matter of: Holtec Decommissioning International, LLC Oyster
Creek Nuclear Generating Station.
05000219
DPR-16
EA-21-041
Confirmatory Order Modifying License
I
Holtec Decommissioning International, LLC (HDI or Licensee) is the
holder of Renewed Facility Operating License No. DPR-16 issued on June
3, 2009, by the U.S. Nuclear Regulatory Commission (NRC or Commission)
pursuant to Part 50 of Title 10 of the Code of Federal Regulations (10
CFR). The license authorizes the operation of Oyster Creek Nuclear
Generating Station (facility) in accordance with conditions specified
therein. The facility is located on the Licensee's site in Forked
River, New Jersey.
This Confirmatory Order is the result of an agreement reached
during an Alternative Dispute Resolution (ADR) mediation session
conducted by video conference on October 14, 2021.
II
On March 13, 2020, the NRC Office of Investigations (OI), Region I
Field Office opened an investigation (OI Case No. 1-2020-007) at Oyster
Creek. The investigation, which was completed on March 11, 2021,
evaluated whether a (now-former) training superintendent at Oyster
Creek, who was also responsible for performing armorer duties,
deliberately failed to perform firearms maintenance activities and
falsified records related to those activities. Based on the evidence
gathered during the investigation, the NRC determined that the armorer
deliberately failed to perform certain required firearms maintenance
activities for calendar year 2019, that the armorer deliberately
falsified records related to these activities, and that these falsified
records were submitted to the NRC in response to an April 10, 2020,
information request.
Specifically, the NRC identified that on the Licensee's 2019
firearms maintenance and testing logs that the Licensee submitted to
the NRC in response to an information request for an NRC security
inspection, the fields for ``date'' and ``performed by'' for annual
material condition inspections were left blank, indicating to the NRC
that the Licensee did not conduct this activity. On March 16, 2020, the
armorer told an NRC Region I security inspector that Oyster Creek staff
no longer performed this inspection and that the procedure was being
changed to remove the requirement. However, the armorer acknowledged
that the procedure change had not yet happened. Subsequently, in
response to an April 10, 2020, information request from OI, the
Licensee resubmitted its firearms logs to the NRC, and the ``date'' and
``performed by'' fields were filled out, which would indicate that the
Licensee had completed the annual material condition inspections. The
armorer informed OI that he filled in these fields after talking to the
NRC inspector. He stated that he probably did not perform the
inspections but maintained that he did not exactly remember what he
did. The NRC determined that the annual material inspections were not
performed in 2019 due to the armorer's deliberate failure to perform
them and that the armorer deliberately falsified the records provided
to the NRC to indicate that the inspections had been performed.
The NRC concluded that the deliberate failure of the armorer to
perform required annual material condition inspections of firearms for
calendar year 2019 caused the Licensee to be in violation of Title 10
of the Code of Federal Regulations (10 CFR) Part 73, Appendix B,
Criterion VI.G, ``Weapons, Personal Equipment, and Maintenance,'' and
procedures required by the Commission-approved Oyster Creek Training
and Qualification Plan. Specifically, 10 CFR part 73, Appendix B,
Criterion VI.G, ``Weapons, Personal Equipment, and Maintenance,''
Section 3(a), ``Firearms maintenance program,'' requires that each
Licensee shall implement a firearms maintenance and accountability
program in accordance with the Commission regulations and the
Commission-approved training and qualification plan. The program must
include, in part: (1) Semiannual test firing for accuracy and
functionality; (2) Firearms maintenance procedures that include
cleaning schedules and cleaning requirements; (3) Program activity
documentation; and (4) Control and accountability (weapons and
ammunition). The Oyster Creek Training and Qualification Plan is
Appendix B to the site's Physical Security Plan. Section 20.5 of
Revision 18 of the Training and Qualification Plan states, in part,
that a testing and maintenance program for all assigned firearms is
established to ensure that the firearms and related accessories
function as intended. The program is described in facility procedures.
Oyster Creek procedure SY-AA-150-103, Revision 0, ``Firearms
Maintenance, Testing, and Accountability,'' constitutes the facility
procedure for the testing, cleaning, and inspecting of security
weapons. Step 4.2.4.2 states, in part, annually, perform the material
condition inspection on all duty firearms. Step 2.3, in terms and
definitions, defines ``annual'' as once per calendar year.
The NRC determined that the armorer's deliberate actions also
caused the Licensee to provide information to the NRC regarding the
annual material inspections of firearms that was not complete and
accurate in all material respects, contrary to 10 CFR 50.9(a).
Specifically, 10 CFR 50.9(a) requires, in part, that information
provided to the Commission by a Licensee or information required by the
Commission's regulations to be maintained by the Licensee shall be
complete and accurate in all material respects. 10 CFR 73.70(e) states,
in part, that each Licensee subject to the provisions of 10 CFR 73.55
shall keep documentation of all tests, inspections, and maintenance
performed on security related equipment used pursuant to the
requirements of this part for three years from the date of documenting
the event. 10 CFR 73.55(a)(1) indicates that the Section applies to
nuclear power reactor licensees that are licensed under 10 CFR part 50.
Logs submitted to the NRC in response to an April 10, 2020, information
request documented that annual material condition inspections had been
performed on each of the Licensee's duty firearms; however, the
Licensee had not performed the inspections. This information is
material to the NRC because the NRC requires testing and maintenance of
weapons to ensure they are in acceptable working condition. Accurate
recordkeeping of such activities ensures
[[Page 5869]]
that the weapons maintenance program is fulfilling these requirements.
Through the investigation, the NRC also identified a third
violation involving the failure by the armorer to perform required
biennial firearms parts replacement. The NRC did not find sufficient
evidence to conclude that this failure was willful. However, the
failure caused the Licensee to be in violation of 10 CFR part 73,
Appendix B, Criterion VI.G, ``Weapons, Personal Equipment, and
Maintenance,'' Section 3(a), ``Firearms maintenance program,'' which
requires that each Licensee shall implement a firearms maintenance and
accountability program in accordance with the Commission regulations
and the Commission-approved training and qualification plan. The
program must include, in part: (1) Semiannual test firing for accuracy
and functionality; (2) Firearms maintenance procedures that include
cleaning schedules and cleaning requirements; (3) Program activity
documentation; and (4) Control and accountability (weapons and
ammunition). The Oyster Creek Training and Qualification Plan is
Appendix B to the site's Physical Security Plan. Section 20.5 of
Revision 18 of the Training and Qualification Plan states, in part,
that a testing and maintenance program for all assigned firearms is
established to ensure that the firearms and related accessories
function as intended. The program is described in facility procedures.
Oyster Creek procedure SY-AA-150-103, Revision 0, ``Firearms
Maintenance, Testing, and Accountability,'' constitutes the facility
procedure for the testing, cleaning, and inspecting of security
weapons. Step 4.2.5, states, replace the following components on duty
rifles biennially: Hammer spring, trigger spring, disconnector spring,
extractor spring, ejector spring, and gas rings. SY-AA-150-103-F-04,
Rifle Material Condition Inspection/Functionality/Accuracy Tests
states, in part, biennially, replace the following components on
contingency rifles and note this as being completed in the weapons
maintenance log. Step 2.7 defines ``biennial'' as at least once every
two years.
By letter, dated July 28, 2021 (Agencywide Documents Access and
Management System (ADAMS) Accession No. ML21176A049), the NRC notified
the Licensee of the results of the investigation with an opportunity
to: (1) Provide a response in writing, (2) attend a predecisional
enforcement conference or (3) to participate in an ADR mediation
session in an effort to resolve this matter.
In response to the NRC's offer, the Licensee requested the use of
the NRC's ADR process to resolve differences it had with the NRC. On
October 14, 2021, the NRC and the Licensee met in an ADR session
mediated by a professional mediator, arranged through Cornell
University's Institute on Conflict Resolution. The ADR process is one
in which a neutral mediator, with no decision-making authority, assists
the parties in reaching an agreement on resolving any differences
regarding the dispute. This Confirmatory Order is issued pursuant to
the agreement reached during the ADR process.
III
During the ADR session, the Licensee and the NRC reached a
preliminary settlement agreement. The elements of the agreement include
the following:
Whereas, the NRC acknowledges that HDI has taken several corrective
actions in response to the violations at Oyster Creek Nuclear
Generating Station (Oyster Creek) so as to preclude the occurrence of
similar violations in the future. These actions include:
1. Denying the former superintendent's unescorted access
authorization and denoting his entry in the Personnel Access Data
System to indicate that there is additional information.
2. Performing an internal fact-finding and accountability
investigation and an apparent cause evaluation, which resulted in the
following corrective measures:
a. Revising the firearms maintenance, testing, and accountability
procedure to remove the requirement to replace parts biennially;
b. Completing the initial development of an electronic application
that will track weapons upon their removal from their assigned
positions;
c. Holding face-to-face meetings between the Oyster Creek Security
Manager and site armorers to ensure understanding of procedural
requirements, complete and accurate recordkeeping, and accurate
ammunition accounting, including logging unused ammunition returned to
the armory after range activities;
d. Conducting, over a two-month period, spot checks of security
personnel logging security weapons, ammunition, and equipment into and
out of the armory and performing ammunition counts.
3. Creating the position of Fleet Director of Security Operations
and appointing an experienced nuclear security manager to the position
as a concurrent role.
4. Initiating development of a standardized set of fleet security
procedures.
Therefore, the parties agree to the following terms and conditions:
1. Terms and Conditions To Be Taken by HDI
A. Items To Assure Restoration of Compliance
1. Within 60 days of the date of the Confirmatory Order, HDI shall
prepare a report of the maintenance status of all in-service and
contingency weapons that are onsite at Oyster Creek as of the date of
the Confirmatory Order. The report shall specify the dates on which
each weapon was last test-fired, cleaned, serviced, and inspected.
Within 30 days of completing this action, HDI shall inform the NRC that
the action is complete by sending a letter to the Region I
Administrator and shall make the report available to the NRC for review
during an inspection.
2. Within 180 days of the date of the Confirmatory Order, HDI shall
complete a root cause evaluation of the events related to the
violations at Oyster Creek described in this Confirmatory Order in
accordance with HDI's corrective action program. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the evaluation available to the NRC for review during an
inspection.
3. Within 180 days of the date of the Confirmatory Order, HDI shall
review its process for performing and recording in-service and out-of-
service weapons maintenance. The review shall include a comparison of
Oyster Creek's process versus other nuclear sites, including at least
one non-HDI nuclear site. The evaluation shall identify best practices
and consider any changes needed at Oyster Creek and specify any
identified corrective actions. Within 30 days of completing this
action, HDI shall inform the NRC that the action is complete by sending
a letter to the Region I Administrator and shall make the results of
the evaluation available to the NRC for review during an inspection.
B. Items To Address Wrongdoing
1. Within 60 days of the date of the Confirmatory Order, HDI shall
communicate this issue to the security personnel at Oyster Creek and
other HDI decommissioning nuclear reactor sites. The communication
(which may be verbal or via written communication) will be conducted by
the president of HDI and shall specify that wrongdoing and
falsification of records are
[[Page 5870]]
unacceptable and shall also explain the specific actions staff must
take when unable to complete required activities. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator. The letter
shall also describe the content of the communication.
2. Within 180 days of the date of the Confirmatory Order, HDI will
conduct training to be given to Security personnel at each of HDI's
nuclear sites. The training will: (a) Emphasize the importance of
complete and accurate information for all required records,
correspondence, and communications with the NRC and its staff; (b)
emphasize individual accountability and clearly express that willful or
deliberate failures to comply with regulations, orders, or license
requirements could result in significant individual enforcement by the
NRC; and (c) reinforce that if any individual recognizes a non-
compliance, they will immediately report the observation of the non-
compliance. Within 30 days of completing this action, HDI shall inform
the NRC that the action is complete by sending a letter to the Region I
Administrator and shall make the training materials available to the
NRC for review during an inspection.
C. Items To Address Armorer Function Weaknesses
1. Within 240 days of the date of the Confirmatory Order, HDI shall
evaluate its implementation of the armorer function at Oyster Creek.
The evaluation shall include review of the staffing and
responsibilities of the position, the methodology for tracking weapons
maintenance status and activities, and supervisory involvement in
verifying completion of required activities. The evaluation shall also
include a comparison of HDI's weapons maintenance processes versus
other nuclear reactor sites, including at least one non-HDI nuclear
reactor site. The evaluation shall identify best practices and consider
any changes needed at Oyster Creek and specify any identified
corrective actions. Within 30 days of completing this action, HDI shall
inform the NRC that the action is complete by sending a letter to the
Region I Administrator and shall make the results of the evaluation
available to the NRC for review during an inspection.
2. Within 90 days of completing the evaluation described in Item
C.1, HDI shall communicate (which may be verbal or in writing) to HDI
Security management staff at Oyster Creek the results of the evaluation
and any completed or pending corrective actions. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the content of the communication available to the NRC for review
during an inspection.
D. Items To Address Implementation of Security Program at Oyster Creek
1. Within 365 days of the date of the Confirmatory Order, HDI shall
administer training to HDI and Holtec Security International, LLC (HSI)
Security staff at Oyster Creek that focuses on roles and expectations
and that reinforces HDI's responsibility for assuring regulatory
compliance. The training shall also include any insights developed from
the root cause evaluation described in Item A.2. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the training materials available to the NRC for review during an
inspection.
2. Within 365 days of the date of the Confirmatory Order, HDI shall
evaluate the Oyster Creek security program to include the program's
organizational effectiveness, the quality and effectiveness of site
security procedures, the security organization's staffing, training,
and communication of standards, expectations, management engagement and
oversight, performance management, and the results of the root cause
evaluation. The evaluation shall also include a review of the clarity
for the security staff about lines of responsibility and reporting, and
the performance and quality of how individual job performance results
are evaluated, documented, and communicated. The results of the
evaluation shall be placed in the Oyster Creek corrective action
program. The evaluation team shall be comprised of no more than 50% HDI
or HSI employees and the remaining participants shall be from an
outside organization (such as a utility or industry group) including a
safety culture expert, external to HDI and HSI. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the results of the evaluation and any related corrective actions
available to the NRC for review during an inspection.
E. Items To Address Corporate Security Oversight
1. Within 90 days of the date of the Confirmatory Order, HDI shall
install a Fleet Security Director position with sole responsibility for
oversight of the security operations at all HDI nuclear sites. The Site
Security Leads shall report to the Fleet Security Director and the
Fleet Security Director shall report to the HDI President. Within 30
days of completing this action, HDI shall inform the NRC that the
action is complete by sending a letter to the Region I Administrator.
HDI shall maintain an individual in this position for a period of 5
years after the date of the Confirmatory Order or until fuel at all HDI
nuclear sites is in dry storage, whichever is sooner.
2. Within 365 days of the date of the Confirmatory Order, HDI shall
effect an evaluation of HDI's implementation of the corporate security
program. The evaluation team shall be comprised of no more than 50% HDI
or HSI employees, and the remaining participants shall be from an
outside organization (such as a utility or an industry group). The
evaluation shall assess HSI's and HDI's corporate security staffing
resources, direct and indirect oversight, and performance management.
The evaluation shall review the fleet implementation of the security
programs at each HDI site to identify areas of strengths and
weaknesses. Within 30 days of completing this action, HDI shall inform
the NRC that the action is complete by sending a letter to the Region I
Administrator and shall make the results of the evaluation available to
the NRC for review during an inspection.
F. Effectiveness Reviews
1. Within 90 days of completion of the evaluation described in D.2,
HDI shall complete the first of four quarterly reviews of the
effectiveness of the Oyster Creek security program and the corrective
actions implemented in response to this issue. Within 30 days of
completing each review, HDI shall inform the NRC of the completion of
the review by sending a letter to the Region I Administrator.
2. The effectiveness reviews discussed in Item F.1 shall be
conducted by a team that includes at least one individual from outside
the HDI or HSI organization. For a period of one year after completion
of the fourth review, the documented effectiveness reviews shall be
made available to the NRC for review during an inspection.
G. External Communication
A. By December 31, 2023, HDI shall discuss this issue, including
the results of all of the above-listed evaluations and resulting
corrective actions, to the following industry working groups: (a)
[[Page 5871]]
The 2023 National Nuclear Security Conference; and (b) Region I Nuclear
Security Association. The discussion shall include reference to any
identified organizational weaknesses that HDI determined contributed to
the issue. Within 30 days of completing each discussion, HDI shall
inform the NRC that the action is complete by sending a letter to the
Region I Administrator and shall make the presentation materials
available to the NRC for one year after the presentation for review
during an inspection.
2. Terms and Conditions To Be Taken by NRC
A. The NRC agrees to issue a reduced civil penalty in the amount of
$50,000.
B. The NRC agrees to not issue a separate Notice of Violation in
addition to the Confirmatory Order but, rather, to describe the
violations in the body of the Order instead.
C. The NRC agrees to include the following statement in the
Confirmatory Order and related communications (i.e., press release): As
part of this agreement, HDI has committed to a number of significant
actions that are expected to improve the security performance of the
fleet. The NRC notes that, prior to this ADR session, HDI initiated
some measures to address the issues raised by the apparent violation.
The NRC will continue to monitor HDI's progress in this area.
D. For the NRC's future civil penalty assessment purposes as
discussed in the NRC Enforcement Policy, the NRC agrees that the
issuance of this Confirmatory Order will not be considered as escalated
enforcement.
On January 19, 2022, HDI consented to issuing this Confirmatory
Order with the commitments, as described in Section V below. HDI
further agreed that this Confirmatory Order is to be effective upon
issuance, the agreement memorialized in this Confirmatory Order settles
the matter between the parties, and that it has waived its right to a
hearing.
IV
HDI has committed to a number of significant actions that are
expected to improve the security performance of the fleet. The NRC
notes that, prior to the ADR session, HDI initiated some measures to
address the issues raised by the apparent violations. The NRC will
continue to monitor HDI's progress in this area. I find that HDI's
actions completed, as described in Section III above, combined with the
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 HDI's commitments be confirmed by this Confirmatory
Order. Based on the above and HDI's consent, this Confirmatory Order is
effective upon issuance.
V
Accordingly, pursuant to Sections 81, 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, 10 CFR part
72, and 10 CFR part 73, it is hereby ordered, effective upon issuance,
that license No. DPR-16 is modified as follows:
A. Items To Assure Restoration of Compliance
1. Within 60 days of the date of the Confirmatory Order, HDI shall
prepare a report of the maintenance status of all in-service and
contingency weapons that are onsite at Oyster Creek as of the date of
the Confirmatory Order. The report shall specify the dates on which
each weapon was last test-fired, cleaned, serviced, and inspected.
Within 30 days of completing this action, HDI shall inform the NRC that
the action is complete by sending a letter to the Region I
Administrator and shall make the report available to the NRC for review
during an inspection.
2. Within 180 days of the date of the Confirmatory Order, HDI shall
complete a root cause evaluation of the events related to the
violations at Oyster Creek described in this Confirmatory Order in
accordance with HDI's corrective action program. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the evaluation available to the NRC for review during an
inspection.
3. Within 180 days of the date of the Confirmatory Order, HDI shall
review its process for performing and recording in-service and out-of-
service weapons maintenance. The review shall include a comparison of
Oyster Creek's process versus other nuclear sites, including at least
one non-HDI nuclear site. The evaluation shall identify best practices
and consider any changes needed at Oyster Creek and specify any
identified corrective actions. Within 30 days of completing this
action, HDI shall inform the NRC that the action is complete by sending
a letter to the Region I Administrator and shall make the results of
the evaluation available to the NRC for review during an inspection.
B. Items To Address Wrongdoing
1. Within 60 days of the date of the Confirmatory Order, HDI shall
communicate this issue to the security personnel at Oyster Creek and
other HDI decommissioning nuclear reactor sites. The communication
(which may be verbal or via written communication) will be conducted by
the president of HDI and shall specify that wrongdoing and
falsification of records are unacceptable and shall also explain the
specific actions staff must take when unable to complete required
activities. Within 30 days of completing this action, HDI shall inform
the NRC that the action is complete by sending a letter to the Region I
Administrator. The letter shall also describe the content of the
communication.
2. Within 180 days of the date of the Confirmatory Order, HDI will
conduct training to be given to Security personnel at each of HDI's
nuclear sites. The training will: (a) Emphasize the importance of
complete and accurate information for all required records,
correspondence, and communications with the NRC and its staff; (b)
emphasize individual accountability and clearly express that willful or
deliberate failures to comply with regulations, orders, or license
requirements could result in significant individual enforcement by the
NRC; and (c) reinforce that if any individual recognizes a non-
compliance, they will immediately report the observation of the non-
compliance. Within 30 days of completing this action, HDI shall inform
the NRC that the action is complete by sending a letter to the Region I
Administrator and shall make the training materials available to the
NRC for review during an inspection.
C. Items To Address Armorer Function Weaknesses
1. Within 240 days of the date of the Confirmatory Order, HDI shall
evaluate its implementation of the armorer function at Oyster Creek.
The evaluation shall include review of the staffing and
responsibilities of the position, the methodology for tracking weapons
maintenance status and activities, and supervisory involvement in
verifying completion of required activities. The evaluation shall also
include a comparison of HDI's weapons maintenance processes versus
other nuclear reactor sites, including at least one non-HDI nuclear
reactor site. The evaluation shall identify best practices and consider
any changes needed at Oyster Creek and specify any identified
corrective actions. Within 30 days of completing this action, HDI shall
inform
[[Page 5872]]
the NRC that the action is complete by sending a letter to the Region I
Administrator and shall make the results of the evaluation available to
the NRC for review during an inspection.
2. Within 90 days of completing the evaluation described in Item
C.1, HDI shall communicate (which may be verbal or in writing) to HDI
Security management staff at Oyster Creek the results of the evaluation
and any completed or pending corrective actions. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the content of the communication available to the NRC for review
during an inspection.
D. Items To Address Implementation of Security Program at Oyster Creek
1. Within 365 days of the date of the Confirmatory Order, HDI shall
administer training to HDI and Holtec Security International, LLC (HSI)
Security staff at Oyster Creek that focuses on roles and expectations
and that reinforces HDI's responsibility for assuring regulatory
compliance. The training shall also include any insights developed from
the root cause evaluation described in Item A.2. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the training materials available to the NRC for review during an
inspection.
2. Within 365 days of the date of the Confirmatory Order, HDI shall
evaluate the Oyster Creek security program to include the program's
organizational effectiveness, the quality and effectiveness of site
security procedures, the security organization's staffing, training,
and communication of standards, expectations, management engagement and
oversight, performance management, and the results of the root cause
evaluation. The evaluation shall also include a review of the clarity
for the security staff about lines of responsibility and reporting, and
the performance and quality of how individual job performance results
are evaluated, documented, and communicated. The results of the
evaluation shall be placed in the Oyster Creek corrective action
program. The evaluation team shall be comprised of no more than 50% HDI
or HSI employees and the remaining participants shall be from an
outside organization (such as a utility or industry group) including a
safety culture expert, external to HDI and HSI. Within 30 days of
completing this action, HDI shall inform the NRC that the action is
complete by sending a letter to the Region I Administrator and shall
make the results of the evaluation and any related corrective actions
available to the NRC for review during an inspection.
E. Items To Address Corporate Security Oversight
1. Within 90 days of the date of the Confirmatory Order, HDI shall
install a Fleet Security Director position with sole responsibility for
oversight of the security operations at all HDI nuclear sites. The Site
Security Leads shall report to the Fleet Security Director and the
Fleet Security Director shall report to the HDI President. Within 30
days of completing this action, HDI shall inform the NRC that the
action is complete by sending a letter to the Region I Administrator.
HDI shall maintain an individual in this position for a period of 5
years after the date of the Confirmatory Order or until fuel at all HDI
nuclear sites is in dry storage, whichever is sooner.
2. Within 365 days of the date of the Confirmatory Order, HDI shall
effect an evaluation of HDI's implementation of the corporate security
program. The evaluation team shall be comprised of no more than 50% HDI
or HSI employees, and the remaining participants shall be from an
outside organization (such as a utility or an industry group). The
evaluation shall assess HSI's and HDI's corporate security staffing
resources, direct and indirect oversight, and performance management.
The evaluation shall review the fleet implementation of the security
programs at each HDI site to identify areas of strengths and
weaknesses. Within 30 days of completing this action, HDI shall inform
the NRC that the action is complete by sending a letter to the Region I
Administrator and shall make the results of the evaluation available to
the NRC for review during an inspection.
F. Effectiveness Reviews
1. Within 90 days of completion of the evaluation described in D.2,
HDI shall complete the first of four quarterly reviews of the
effectiveness of the Oyster Creek security program and the corrective
actions implemented in response to this issue. Within 30 days of
completing each review, HDI shall inform the NRC of the completion of
the review by sending a letter to the Region I Administrator.
2. The effectiveness reviews discussed in Item F.1 shall be
conducted by a team that includes at least one individual from outside
the HDI or HSI organization. For a period of one year after completion
of the fourth review, the documented effectiveness reviews shall be
made available to the NRC for review during an inspection.
G. External Communication
1. By December 31, 2023, HDI shall discuss this issue, including
the results of all of the above-listed evaluations and resulting
corrective actions, to the following industry working groups: (a) The
2023 National Nuclear Security Conference; and (b) Region One Nuclear
Security Association. The discussion shall include reference to any
identified organizational weaknesses that HDI determined contributed to
the issue. Within 30 days of completing each discussion, HDI shall
inform the NRC that the action is complete by sending a letter to the
Region I Administrator and shall make the presentation materials
available to the NRC for one year after the presentation for review
during an inspection.
H. Civil Penalty
1. Within 30 days of the date of issuance of the Confirmatory
Order, HDI will pay a civil penalty of $50,000 through one of the
following two methods:
a. Submit the payment with the enclosed invoice to this Order (EA-
21-041) to the following address: Office of the Chief Financial
Officer, U.S. Nuclear Regulatory Commission, P.O. Box 979051, St.
Louis, MO 63197
OR
b. Submit the payment in accordance with NUREG/BR-0254.
In addition, at the time payment is made, the licensee shall submit
a statement indicating when and by what method payment was made, to the
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission,
One White Flint North, 11555 Rockville Pike, Rockville, MD 20852-2738.
This agreement is binding upon successors and assigns of HDI. The
Regional Administrator, Region I may, in writing, relax or rescind any
of the above conditions upon demonstration by HDI or its successors of
good cause.
VI
In accordance with 10 CFR 2.202 and 10 CFR 2.309, any person
adversely affected by this Confirmatory Order, other than HDI, may
request a hearing within thirty (30) calendar days of the date of
issuance 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 made in writing to the
Director, Office of
[[Page 5873]]
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555,
and include a statement of good cause for the extension.
All documents filed in NRC adjudicatory proceedings, including a
request for hearing and petition for leave to intervene (petition), 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 that request to
participate under 10 CFR 2.315(c), must be filed in accordance with the
NRC's E-Filing rule (72 FR 49139; August 28, 2007, as amended at 77 FR
46562; August 3, 2012). 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. Detailed
guidance on making electronic submissions may be found in the Guidance
for Electronic Submissions to the NRC and on the NRC website at https://www.nrc.gov/site-help/e-submittals.html. 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 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 identification (ID)
certificate, which allows the participant (or its counsel or
representative) to digitally sign submissions and access the E-Filing
system for any proceeding in which it is participating; and (2) advise
the Secretary that the participant will be submitting a petition or
other adjudicatory document (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 the NRC's public website at https://www.nrc.gov/site-help/e-submittals/getting-started.html. Once a participant has obtained a
digital ID certificate and a docket has been created, the participant
can then submit adjudicatory documents. Submissions must be in Portable
Document Format (PDF). Additional guidance on PDF submissions is
available on the NRC's public website at https://www.nrc.gov/site-help/electronic-sub-ref-mat.html. A filing is considered complete at the
time the document is 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 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
document on those participants separately. Therefore, applicants and
other participants (or their counsel or representative) must apply for
and receive a digital ID certificate before adjudicatory documents are
filed so that they can obtain access to the documents via the E-Filing
system.
A person filing electronically using the NRC's adjudicatory E-
Filing system may seek assistance by contacting the NRC's Electronic
Filing Help Desk through the ``Contact Us'' link located on the NRC's
public website at https://www.nrc.gov/site-help/e-submittals.html, by
email to [email protected], or by a toll-free call at 1-866-672-
7640. The NRC Electronic Filing Help Desk is available between 9 a.m.
and 6 p.m., Eastern Time, 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
stating why there is good cause for not filing electronically and
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, 11555
Rockville Pike, Rockville, Maryland 20852, Attention: Rulemaking and
Adjudications Staff. Participants filing adjudicatory documents 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
https://adams.nrc.gov/ehd, unless excluded pursuant to an order of the
Commission or the presiding officer. If you do not have an NRC-issued
digital ID certificate as described above, click ``cancel'' when the
link requests certificates and you will be automatically directed to
the NRC's electronic hearing dockets where you will be able to access
any publicly available documents in a particular hearing docket.
Participants are requested not to include personal privacy information,
such as social security numbers, home addresses, or personal phone
numbers in their filings, unless an NRC regulation or other law
requires submission of such information. For example, in some
instances, individuals provide home addresses in order to demonstrate
proximity to a facility or site. With respect to copyrighted works,
except for limited excerpts that serve the purpose of the adjudicatory
filings and would constitute a Fair Use application, participants are
requested not to include copyrighted materials in their submission.
The Commission will issue a notice or order granting or denying a
hearing request or intervention petition, designating the issues for
any hearing that will be held and designating the presiding officer. A
notice granting a hearing will be published in the Federal Register and
served on the parties to the hearing.
If a person (other than HDI) 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 an order designating the time and
place of any hearings. 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
[[Page 5874]]
from the date of this Confirmatory Order without further order or
proceedings. If an extension of time for 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.
For the Nuclear Regulatory Commission.
Raymond K. Lorson,
Deputy Regional Administrator, NRC Region I.
Dated this 26th day of January, 2022.
[FR Doc. 2022-02068 Filed 2-1-22; 8:45 am]
BILLING CODE 7590-01-P