NRC plans second on-site inspector
for NFS
By Thomas Wilson
STAR STAFF
twilson@starhq.com
ERWIN -- Officials with Nuclear Fuel Services Inc. touted
an "improved" system of performance enhancements during a
meeting with officials of the U.S. Nuclear Regulatory Commission
held here Thursday morning.
Officials from NRC's Region II office in Atlanta were at NFS
to hear NFS officials discuss the company's performance enhancements
created since it last met with the NRC in October. A new regulatory
wrinkle NRC officials said they plan to add at NFS is a second
on-site regulatory inspector at the NFS site since the company
expanded its operation.
"Our processes deal with safety first," said Luis Reyes, regional
administrator for Region II.
Presently, one on-site inspector has the run of the NFS facility
to examine compliance with NRC regulations pertaining to nuclear
materials facilities. While neither NRC nor NFS officials
openly discussed the controversial Blended Low Enriched Uranium
(BLEU) Project during the public meeting, the NRC acknowledged
the company's growing operations were an impetus to add the
second inspector.
During its presentation, company officials explained efforts
to improve both safety and regulatory compliance at its facility
with a greater emphasis on self-assessment procedures.
"I think we've improved," Marie Moore of NFS told NRC officials
at the meeting held at the company's employee training center
on Banner Hill Road.
An NRC response to a violation by NFS that occurred in January
2003 has moved to the "enforcement" stage according to NRC
officials. The NRC's Office of Investigations for Region II
initiated an investigation on April 11, 2003, to determine
if an NFS decommissioning supervisor deliberately falsified
records documenting the transfer of low-enriched uranium (LEU)
solution.
In a letter from NRC's Division of Fuel Facilities Inspection
dated Jan. 16, 2004, Region II's Office of Investigations
substantiated that the decommissioning supervisor willfully
authorized the transfer of LEU solution without conducting
required verifications and reviews prior to and/or during
the transfer.
Based on the evidence, documentation, and testimony during
the investigation, NRC staff reported that they found insufficient
evidence to substantiate that a decommissioning supervisor
with NFS deliberately falsified records pertaining to the
transfer of LEU. The decommissioning supervisor's documentation
of the transfer resulted in the recording of inaccurate information
pertaining to the transfer, according to an NRC investigation
document. The incident occurred during decommissioning of
a building at the Erwin site that has since been demolished.
NFS spokesman Tony Treadway said the company would not comment
on specifics of the employee's actions, but he did say the
matter was handled immediately after it occurred. "The matter
was promptly and thoroughly reviewed by the NRC and NFS in
January of last year," he said.
Reyes said the violation status has moved into consideration
for escalated enforcement action and was turned over to the
U.S. Department of Justice to determine whether additional
actions would be pursued regarding the violation, as was NRC
policy.
Trudy Wallack, a representative of the Friends of the Nolichchuky
River Valley, questioned the difference between the terms
"willful action" and "deliberate falsification".
"I would like to think that at this point the ongoing violation
has to raise questions in the NRC like what qualifications
and connections you have in place," Wallack said. "This is
a chief concern, that we understand that no one is above error."
Wallack said she had trouble understanding what would motivate
a decommissioning supervisor by making such an error. She
and Modica are members of a consortium of environmental groups
requesting a public hearing on the BLEU Project.
Wallack also asked if NRC were aware of information about
an incident involving individuals of "middle Eastern" appearance
that rented a hotel room near NFS and on Sept. 11 vacated
the hotel room leaving all their belongings behind.
Reyes responded that NRC received a variety of information
similar to that from the Department of Homeland Security and
the FBI.
"Information such as that comes to our attention ... we can't
go into details," he said. "We have had similar information,
not only here but in other places.
"I can tell you we daily receive intelligence and information."
In total, the three related license amendment requests seeking
to amend the Special Nuclear Materials license held by NFS
have been submitted to the NRC for approval pertaining to
the BLEU Project. The license amendments involve the construction
of three new buildings -- the Uranyl Nitrate Building, the
Oxide Conversion Building, and the Effluent Processing Building
-- on a site referred to as the "BLEU Complex" at the company's
site in Erwin.
The BLEU Project is a U.S. Department of Energy initiative
to convert stockpiles of surplus weapons-grade uranium into
a low-enriched uranium for use in nuclear reactors of the
Tennessee Valley Authority. The project will bring more than
33 tons of weapons-grade uranium into Erwin for down blending.
NRC staff have already approved two of three license amendment
requests to NFS Special Nuclear Materials license. The first
license amendment application, approved by NRC in June 2003,
grants NFS the ability to store LEU-bearing material in its
Uranyl Nitrate Building. The second amendment enables NFS
to process approximately half of the BLEU Project's 33 metric
tons of surplus highly enriched uranium. A third license amendment,
submitted by NFS in October 2003 seeks authority to construct
and operate an Oxide Conversion Facility and related Effluent
Processing Building, which is currently under review by the
NRC.
These facilities will use a process developed by NFS, partner
Framatome ANP. The facilities will convert the liquid uranyl
nitrate solution into a uranium oxide powder, which will be
further processed at Richland, Wash., into uranium fuel pellets
for loading into fuel rods and assemblies for use in commercial
nuclear reactors of the Tennessee Valley Authority.
Environmental groups including Friends of the Nolichucky River
Valley, the State of Franklin Group of the Sierra Club, Oak
Ridge Environmental Peace Alliance, and Tennessee Environmental
Council along with a private citizen have filed petitions
with the NRC seeking standing to have a public hearing regarding
the BLEU Project. Fifteen Northeast Tennessee citizens represented
by a Greeneville attorney have also filed separate petitions.
Attorneys for NFS have asked the NRC to deny petitioners'
requests for a hearing, stating that none of them had demonstrated
"standing" or "injury in fact".