In the Matter of Southern Nuclear Operating Company, Inc.; Joseph M. Farley Nuclear Plant, 1244-1249 [2019-00688]

Download as PDF 1244 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices Support System (LSS). In November, 1998 the Commission approved amendments to title 10 Code of Federal Regulations Part 2 that renamed the Licensing Support System Advisory Review Panel as the Licensing Support Network Advisory Review Panel (LSNARP). The Licensing Support Network (LSN) was shut down in 2011 and the document collection was submitted to the Office of the Secretary. The document collection was made publically available in the NRC’s Agencywide Documents Access and Management System in August 2016 and contains over 3.69 million documents associated the proposed high-level waste facility at Yucca Mountain. Membership on the Panel will continue to be drawn from those whose interests could be affected by the use of the LSN document collection, including the Department of Energy, the NRC, the State of Nevada, the National Congress of American Indians, affected units of local governments in Nevada, the Nevada Nuclear Waste Task Force, and nuclear industry groups. Federal agencies with expertise and experience in electronic information management systems may also participate on the Panel. The NRC has determined that renewal of the charter for the LSNARP until January 3, 2021, is in the public interest in connection with duties imposed on the Commission by law. This action is being taken in accordance with the Federal Advisory Committee Act after consultation with the Committee Management Secretariat, General Services Administration. FOR FURTHER INFORMATION CONTACT: Russell E. Chazell, Office of the Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555: Telephone 301–415–7469. Dated: January 3, 2019. Russell E. Chazell, Federal Advisory Committee Management Officer. [FR Doc. 2019–00599 Filed 1–31–19; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION ACTION: Confirmatory order; issuance. The U.S. Nuclear Regulatory Commission (NRC) issued a confirmatory order (Order) to Southern Nuclear Operating Company, Inc., (the licensee), confirming the agreement reached in an Alternative Dispute Resolution mediation session held on September 21–22, 2018. This Order will ensure the licensee restores compliance with NRC regulations. SUMMARY: The confirmatory order was issued on January 29, 2019. DATES: Please refer to Docket ID NRC–2019–0038 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 http://www.regulations.gov and search for Docket ID NRC–2019–0038. Address questions about dockets in Regulations.gov to Krupskaya Castellon; telephone: 301–287–9221; e-mail: Krupskaya.Castellon@nrc.gov. 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 Document collection at https://www.nrc.gov/reading-rm/ adams.html. To begin the search, select ‘‘Begin Web-based ADAMS Search.’’ For problems with ADAMS, contact the NRC’s Public Document Room (PDR) reference staff at 1–800–397–4209, 301– 415–4737, or by e-mail to pdr.resource@ nrc.gov. The ADAMS accession number for each document referenced (if it is available in ADAMS) is provided the first time that it is mentioned in this document. • NRC’s PDR: You may examine and purchase copies of public documents at the NRC’s PDR, Room O1–F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. ADDRESSES: FOR FURTHER INFORMATION CONTACT: [Docket Nos. 50–348; 50–364; License Nos. NPF–2; NPF–8; EA–18–032; NRC–2019– 0038] Scott Sparks, Region II, U.S. Nuclear Regulatory Commission, Atlanta, Georgia 30303–1257; telephone: 404– 997–4422; email: Scott.Sparks@nrc.gov. In the Matter of Southern Nuclear Operating Company, Inc.; Joseph M. Farley Nuclear Plant SUPPLEMENTARY INFORMATION: Nuclear Regulatory Commission. Dated at Atlanta, Georgia, this 29th day of January 2019. AGENCY: VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 The text of the Order is attached. PO 00000 Frm 00198 Fmt 4703 Sfmt 4703 For the Nuclear Regulatory Commission. Catherine Haney, Regional Administrator. UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of Southern Nuclear Operating Company, Inc., Joseph M. Farley Nuclear Plant Docket Nos. 50–348; 50–364 License Nos. NPF–2; NPF–8 EA–18–032 CONFIRMATORY ORDER MODIFYING LICENSE (EFFECTIVE UPON ISSUANCE) I Southern Nuclear Operating Company, Inc., (SNC or Licensee) is the holder of Operating License Nos. NPF– 2, NPF–8, DPR–57, NPF–5, NPF–68, NPF–81, and Combined Licenses NPF– 91 and NPF–92, issued by the U.S. Nuclear Regulatory Commission (NRC or Commission) pursuant to part 50 and part 52 of title 10 of the Code of Federal Regulations (10 CFR). The licenses authorize the operation of the Joseph M. Farley Nuclear Plant (FNP) Units 1 and 2, the Edwin I. Hatch Nuclear Plant, Units 1 and 2, the Vogtle Electric Generating Plant, Units 1 and 2, and the combined construction and operation of Vogtle Electric Generating Plant, Units 3 and 4, in accordance with conditions specified therein. These facilities are located in Columbia, Alabama, Baxley, Georgia, and Waynesboro, Georgia, respectively. This Confirmatory Order (CO) is the result of an agreement reached during an alternative dispute resolution (ADR) mediation session conducted on September 21–22, 2018. II On April 21, 2017, the U. S. Nuclear Regulatory Commission’s (NRC) Office of Investigations (OI) initiated an investigation, to determine if a Forceon-Force/Target Set Coordinator, who was also a Safeguards Information (SGI) custodian at Farley Nuclear Plant (FNP), deliberately failed to properly secure SGI and follow plant procedures. The investigation was completed on March 29, 2018, and the results were documented in OI Report No. 2–2017– 022. The NRC conducted a review of the OI report, and documented the results of this review in NRC Inspection Report 05000348/2018411 and 05000364/ 2018411, dated July 27, 2018 (Agencywide Documents Access and Management System (ADAMS) E:\FR\FM\01FEN1.SGM 01FEN1 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices accession number ML18208A305). The inspection report identified one apparent violation (AV), involving the licensee’s failure to store SGI in a locked security storage container while unattended and the failure to maintain an inventory of SGI documents located inside a security storage container and to document the retrieval of SGI when in use. The specific AV (updated to reflect the correct title of the FNP employee involved) was stated as follows: 10 CFR 73.21(a)(1), Protection of Safeguards Information: Performance requirements, states, in part, Each licensee, or other person who produces, receives, or acquires Safeguards Information [SGI] shall ensure that it is protected against unauthorized disclosure. To meet this general performance requirement, such licensees, or other persons subject to this section shall: (i) Establish, implement, and maintain an information protection system that includes the applicable measures for Safeguards Information specified in 10 CFR 73.22 related to power reactors. 10 CFR 73.22(c)(2), Protection of Safeguards Information: Specific requirements, states in part, that while unattended, Safeguards information shall be stored in a locked security storage container. Southern Nuclear Company (SNC) Procedure NMP–AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ Version 2.1, requires SGI custodians to maintain an inventory of documents inside a security storage container and log any retrieval of an SGI document for use. This procedure also requires that, while unattended, SNC Safeguards Information shall be stored in an approved Security Storage Container. Contrary to the above, on multiple dates in August, 2016, the licensee failed to store SGI in a locked security storage container while unattended and failed to maintain an inventory of SGI located inside a security storage container and to document the retrieval of SGI when in use. Specifically, a former Force-on-Force/Target Set Coordinator, who served as an SGI custodian, failed to store SGI in a locked security storage container while unattended on the following occasions: 1) SGI was left unattended in the employee’s private residence on or approximately August 18–20, 2016; 2) SGI was left unattended in a hotel room for approximately 1.5 hours on August 20, 2016; 3) SGI was left unattended in a rental car on August 25, 2016, for approximately 11 hours; and 4) A laptop computer containing SGI was left VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 unattended in the employee’s private residence on or approximately August 25–26, 2016. Additionally, the licensee failed to maintain an inventory and document the retrieval of SGI from the security storage container when the employee reproduced an SGI document, placed the SGI in a binder and removed it for use from the security storage container. The NRC’s inspection report of July 27, 2018, also documented that the OI investigation was conducted to determine whether the FNP employee deliberately failed to properly secure safeguards information (SGI) and follow plant procedures. In this case, the employee indicated his knowledge of regulatory and procedural requirements involving the handling of SGI. Additionally, the employee had received SGI training and had a clear understanding of SNC’s SGI handling requirements. However, the Farley employee deliberately failed to follow SNC procedures, and his actions were determined by the NRC to be in violation of 10 CFR 50.5. In response to the NRC’s inspection report of July 27, 2018, SNC advised of its desire to participate in the Agency’s ADR program to resolve the enforcement aspects of this matter. III On September 21–22, 2018, the NRC and SNC met in an ADR session mediated by a professional mediator, arranged through Cornell University’s Institute on Conflict Resolution. ADR is a process in which a neutral mediator with no decision-making authority assists the parties in reaching an agreement or resolving any differences regarding their dispute. This CO is issued pursuant to the agreement reached during the ADR process. The elements of the agreement consist of the following: 1. The NRC and SNC agreed that the issue described in Section II of this CO represents a violation of regulatory requirements, the NRC and SNC concluded that the violation occurred due to the deliberate misconduct of a former Force-on-Force/Target Set Coordinator at FNP. 2. Based on a review of the incident, SNC completed a number of corrective actions and enhancements to preclude recurrence of the violation, including but not limited to the following: a. Immediate/interim corrective actions included: initiated a corporate security investigation; stopped all transportation of SGI without approval from the site security manager; briefed all SGI custodians and verified their understanding of how to properly use PO 00000 Frm 00199 Fmt 4703 Sfmt 4703 1245 and handle SGI; performed the SGI safe inventory at Farley Nuclear Plant; issued a security department instruction on NMP–AD–013–003 requirements for SGI on laptop hard drives; evaluated if gaps existed in their Behavior Observation Program as related to the individual; developed a communication strategy for both internal and external communications related to the issue; performed an assessment to determine how effectively FNP had responded and what additional actions should be taken by means of an external resource knowledgeable of security; and issued a security department instruction to revise the approval authority for off-site transport of SGI to the Fleet Security Director; b. Other prompt/intermediate corrective actions included: revised the SGI procedures to address issues identified during the root cause evaluation; briefed all SNC Safeguards Information custodians on the findings of the root cause including Operating Experience (OE) and lessons learned; and conducted external benchmarking with other utilities regarding SGI controls during off-site transportation. 3. Based on SNC’s review of the incident and NRC’s concerns with respect to precluding recurrence of the violation, SNC agreed to implement the following corrective actions and enhancements: a. Within 4 months of the issuance date of the Confirmatory Order (CO), SNC shall revise procedures to periodically and randomly audit SGI records to determine compliance with existing procedures and regulatory requirements. At a minimum, three random audits of SGI records shall be performed at each SNC nuclear plant each year, for a period of three years from the date of issuance of this CO. Identified deficiencies shall be entered into the CAP for tracking corrective actions to completion, consistent with existing SGI requirements. The audit shall be conducted by personnel knowledgeable of SGI, independent from the station. The results of such audits shall be made available for NRC review. b. Upon issuance of the CO, SNC shall maintain applicable SGI procedures to provide specific direction for transporting SGI away from the Protected Area and Owner Controlled Area of an SNC facility, including packaging requirements and guidance on positive controls on business travel that may involve an overnight stay, consistent with NMP–AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. E:\FR\FM\01FEN1.SGM 01FEN1 1246 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices c. Upon issuance of the CO, SNC shall maintain applicable SGI procedures to ensure that SGI handling requires the conduct of a pre-job brief for all qualified individuals requesting to check out SGI for use, consistent with NMP–AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. d. Internal Communication: i. Within 2 months of the issuance date of the Confirmatory Order, an SNC senior executive shall develop a Communication (either verbal, written, electronic, or video) describing the circumstances leading to this CO, explain that willful violations will not be tolerated, and, as a result, SNC shall be undertaking efforts to confirm whether individuals are engaging in such conduct at any of its sites. The Communication shall stress the importance of procedural use and adherence and ensuring that documents are complete and accurate. The Communication shall also stress the potential consequences for engaging in willful noncompliance. This message shall be balanced with the recognition that people do make mistakes, and when that happens action shall be taken by SNC to address the mistake. The contents of this communication shall be retained and made available for NRC review consistent with the terms of this CO. ii. Within 6 months of the completion of Section III.3.d.i, this Communication will be distributed to all SNC employees and contractors with unescorted access authorization to the SNC operating sites. Each recipient of the Communication referenced in Section III.3.d.i shall read and sign a ‘‘commitment to compliance’’ statement included with the Communication (subject to any collective bargaining obligations that may apply). iii. Within 2 months of the completion of Section III.3.d.i, and for three years following the issuance of this CO, this Communication will be provided to all individuals receiving unescorted access authorization to the SNC operating sites. iv. With respect to the Vogtle 3&4 site: 1. Within 6 months of the completion of Section III.3.d.i, and for a period of 3 years from the date of the CO, SNC supervisors and above shall receive the Communication (referenced in Section III.3.d.i). Each recipient of the Communication referenced in Section III.3.d.i shall read and sign a ‘‘commitment to compliance’’ statement included with the Communication (subject to any collective bargaining obligations that may apply). During this 3 year period individuals promoted to a VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 supervisory position shall receive the Communication and read and sign the ‘‘commitment to compliance’’ statement. 2. The contractor superintendents covered by this paragraph will include those who are superintendents when SNC initiates actions described in Section III.3.d.iv.1. Within a period of 6 months from the date of issuance of this CO, all contractor superintendents and above who have fitness for duty or unescorted access authorization to the controlled construction area will receive the Communication and read and sign the ‘‘commitment to compliance’’ statement included with the Communication referenced in Section III.3.d.i above. Additionally, contractor personnel covered by Section III.3.d.iv.2 shall commit to inform their reports of the contents of the Communication. 3. Within 2 months of completion of Section III.3.d.i and for three years following the issuance of this CO, all individuals receiving fitness for duty or unescorted access authorization to the controlled construction area will receive the Communication prior to the granting of access. e. Within 6 months of the issuance date of the Confirmatory Order and at 12 month intervals thereafter, SNC shall complete retraining of all SNC SGI custodians regarding SGI control, access, receipt, transportation, inventory, transmittal, and storage. f. Upon issuance of the CO, SNC shall maintain SGI procedures regarding storage of SGI originating from other permanent repositories and the inventory of SGI, consistent with NMP– AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. g. Upon issuance of the CO, SNC shall maintain certain sections of SGI procedures as ‘‘reference use’’ (i.e., the procedure is required to be present when performing the associated action steps) consistent with NMP–AD–013– 003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1, and NMP–AD–013–005, ‘‘Transmittal and Receipt of Safeguards Information (SGI),’’ Revision 3.0. h. Within 12 months from the date of this Confirmatory Order, SNC shall deliver a presentation describing the event that formed the basis for this violation to include corporate and site oversight, and accountability responsibilities. The presentation shall also emphasize procedural adequacy, procedural adherence, and the need for management ownership of integrity issues. The presentation shall be delivered at one of the following: the Nuclear Security Working Group PO 00000 Frm 00200 Fmt 4703 Sfmt 4703 Meeting, the Security/Emergency Preparedness Summit, the NRC’s Regulatory Information Conference, the NEI Regulatory Affairs Forum, or the ANS Utility Working Group Conference. In the event that SNC cannot deliver a presentation at one of the aforementioned events, SNC shall seek approval from the NRC for an alternative venue. The presentation shall be made available for NRC review. i. Within 4 months of the issuance date of the Confirmatory Order, SNC shall revise procedures to require that all transportation of SGI material outside of the owner controlled area shall require approval of an SNC Corporate Security Manager. j. Within 3 months from the date of this Confirmatory Order, SNC shall revise procedures to provide additional instruction following an incident having the potential for a Part 73 violation of green or higher significance. The instruction shall require that an SNC Security organization not involved in the event provides oversight in determining the proper corrective action program response (e.g., corporate led security investigation or fact finding). Documentation shall be retained and made available for NRC review consistent with the terms of this CO. k. Within 9 months of the issuance date of the Confirmatory Order, SNC shall conduct a benchmarking activity of at least two other non-SNC entities which handle SGI, for the purposes of determining best practices related to the SGI program. Based on the best practices identified by SNC, SNC shall revise program elements to facilitate SGI program improvements. The results of such benchmarking shall be made available for NRC review. l. Within 6 months of the issuance date of the Confirmatory Order, SNC shall complete an independent assessment of the effectiveness of prior corrective actions since 2011 and an assessment of adverse trends that are associated with SGI incidents at SNC fleet facilities and the SNC corporate office. The results of this assessment shall be made available for NRC review. m. At approximately 18 months after the issuance date of the CO, SNC shall conduct an effectiveness review of the required actions documented in Section V of this CO and those Corrective Action Reports (CARs) identified in Technical Evaluation (TE) 984092. SNC shall make available to the NRC the results of this review and its proposed actions to address any identified performance gaps. 4. For future NRC civil penalty assessment purposes, this CO shall be considered an escalated enforcement E:\FR\FM\01FEN1.SGM 01FEN1 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices action for the FNP (50–348, 50–364) dockets only. 5. The NRC concludes that the security significance of the SGI incident, including the deliberate aspects is consistent with escalated enforcement as described in the NRC Enforcement Policy. Additionally, a civil penalty would likely have been proposed, consistent with the Enforcement Policy civil penalty assessment approach. However, in consideration of the commitments delineated in Section V of this CO, the NRC agrees not to cite the violation, and agrees not to propose a civil penalty for all matters discussed in the NRC’s IR to SNC dated July 27, 2018 (EA–18–032). 6. Upon completion of the terms of items of the CO, SNC shall provide the NRC with a letter discussing its basis for concluding that the CO has been satisfied. 7. The NRC and SNC agree that the above elements shall be incorporated into issuance of a Confirmatory Order. 8. This agreement is binding upon successors and assigns of SNC. On January 9, 2019, SNC consented to issuance of this Confirmatory Order with the commitments, as described in Section V below. SNC further agreed that this Confirmatory Order is to be effective upon issuance and that it has waived its right to a hearing. IV Because SNC has agreed to take additional actions to address NRC concerns, as set forth in Section III above, the NRC has concluded that its concerns can be resolved through issuance of this CO. I find that SNC’s 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 SNC’s commitments be confirmed by this CO. Based on the above and SNC’s consent, this CO is effective upon issuance. V Accordingly, pursuant to Sections 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 and 10 CFR part 50, IT IS HEREBY ORDERED, THAT LICENSE NOS. NPF–2, NPF–8, DPR–57, NPF–5, NPF–68, NPF–81, NPF–91, AND NPF–92 ARE MODIFIED AS FOLLOWS: 1. SNC agrees to implement the following corrective actions and enhancements: VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 a. Within 4 months of the issuance date of the Confirmatory Order (CO), SNC shall revise procedures to periodically and randomly audit SGI records to determine compliance with existing procedures and regulatory requirements. At a minimum, three random audits of SGI records shall be performed at each SNC nuclear plant each year, for a period of three years from the date of issuance of this CO. Identified deficiencies shall be entered into the CAP for tracking corrective actions to completion, consistent with existing SGI requirements. The audit shall be conducted by personnel knowledgeable of SGI, independent from the station. The results of such audits shall be made available for NRC review. b. Upon issuance of the CO, SNC shall maintain applicable SGI procedures to provide specific direction for transporting SGI away from the Protected Area and Owner Controlled Area of an SNC facility, including packaging requirements and guidance on positive controls on business travel that may involve an overnight stay, consistent with NMP–AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. c. Upon issuance of the CO, SNC shall maintain applicable SGI procedures to ensure that SGI handling requires the conduct of a pre-job brief for all qualified individuals requesting to check out SGI for use, consistent with NMP–AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. d. Internal Communication: i. Within 2 months of the issuance date of the Confirmatory Order, an SNC senior executive shall develop a Communication (either verbal, written, electronic, or video) describing the circumstances leading to this CO, explain that willful violations will not be tolerated, and, that as a result, SNC shall be undertaking efforts to confirm whether individuals are engaging in such conduct at any of its sites. The Communication shall stress the importance of procedural use and adherence and ensuring that documents are complete and accurate. The Communication shall also stress the potential consequences for engaging in willful noncompliance. This message shall be balanced with the recognition that people do make mistakes, and when that happens action shall be taken by SNC to address the mistake. The contents of this communication shall be retained and made available for NRC review consistent with the terms of this CO. PO 00000 Frm 00201 Fmt 4703 Sfmt 4703 1247 ii. Within 6 months of the completion of Section V.1.d.i, this Communication will be provided to all SNC employees and contractors with unescorted access authorization to the SNC operating sites. Each recipient of the Communication referenced in Section V.1.d.i shall read and sign a ‘‘commitment to compliance’’ statement included with the Communication (subject to any collective bargaining obligations that may apply). iii. Within 2 months of the completion of Section V.1.d.i, and for three years following the issuance of this CO, this Communication will be provided to all individuals receiving unescorted access authorization to the SNC operating sites. iv. With respect to the Vogtle 3&4 site: 1. Within 6 months of the completion of Section V.1.d.i, and for a period of 3 years from the date of the CO, SNC supervisors and above shall receive the Communication referenced in Section V.1.d.i. Each recipient of the Communication referenced in Section V.1.d.i shall read and sign a ‘‘commitment to compliance’’ statement included with the Communication (subject to any collective bargaining obligations that may apply). During this 3 year period individuals promoted to a supervisory position shall receive the Communication and read and sign the ‘‘commitment to compliance’’ statement. 2. The contractor superintendents covered by this paragraph will include those who are superintendents when SNC initiates actions described in Section V.1.d.iv.1. Within a period of 6 months from the date of issuance of this CO, all contractor superintendents and above who have fitness for duty or unescorted access authorization to the controlled construction area will receive the Communication and read and sign the ‘‘commitment to compliance’’ statement included with the Communication referenced in Section V.1.d.i above. Additionally, contractor personnel covered by Section V.1.d.iv.2 shall commit to inform their reports of the contents of the Communication. 3. Within 2 months of the completion of Section V.1.d.i and for three years following the issuance of this CO, all individuals receiving fitness for duty or unescorted access authorization to the controlled construction area will receive the Communication prior to the granting of access. e. Within 6 months of the issuance date of the Confirmatory Order and at 12 month intervals thereafter, SNC shall complete retraining of all SNC SGI custodians regarding SGI control, E:\FR\FM\01FEN1.SGM 01FEN1 1248 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices access, receipt, transportation, inventory, transmittal, and storage. f. Upon issuance of the CO, SNC shall maintain SGI procedures regarding storage of SGI originating from other permanent repositories and the inventory of SGI, consistent with NMP– AD–013–003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1. g. Upon issuance of the CO, SNC shall maintain certain sections of SGI procedures as ‘‘reference use’’ (i.e., the procedure is required to be present when performing the associated action steps) consistent with NMP–AD–013– 003, ‘‘Physical Protection of Safeguards Information (SGI),’’ revision 5.1, and NMP–AD–013–005, ‘‘Transmittal and Receipt of Safeguards Information (SGI),’’ revision 3.0. h. Within 12 months from the date of this Confirmatory Order, SNC shall deliver a presentation describing the event that formed the basis for this violation and including corporate and site oversight, and accountability responsibilities. The presentation shall also emphasize procedural adequacy, procedural adherence, and the need for management ownership of integrity issues. The presentation shall be delivered at one of the following: the Nuclear Security Working Group Meeting, the Security/Emergency Preparedness Summit, the NRC’s Regulatory Information Conference, the NEI Regulatory Affairs Forum, or the ANS Utility Working Group Conference. In the event that SNC cannot deliver a presentation at one of the aforementioned events, SNC shall seek approval from the NRC for an alternative venue. The presentation shall be made available for NRC review. i. Within 4 months of the issuance date of the Confirmatory Order, SNC shall revise procedures to require that all transportation of SGI material outside of the owner controlled area shall require approval by an SNC Corporate Security Manager. j. Within 3 months from the date of this Confirmatory Order, SNC shall revise procedures to provide additional instruction following an incident having the potential for a Part 73 green or higher violation. The instruction shall require that an SNC Security organization not involved in the event provides oversight in determining the proper corrective action program response (e.g., corporate led security investigation or fact finding). Documentation shall be retained and made available for NRC review consistent with the terms of this order. k. Within 9 months of the issuance date of the Confirmatory Order, SNC VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 shall conduct a benchmarking activity of at least two other non-SNC entities which handle SGI, for the purposes of determining best practices related to the SGI program. Based on the best practices identified by SNC, SNC shall revise program elements to facilitate SGI program improvements. The results of such benchmarking shall be made available for NRC review. l. Within 6 months of the issuance date of the Confirmatory Order, SNC shall complete an independent assessment of the effectiveness of prior corrective actions since 2011 and an assessment of adverse trends that are associated with SGI incidents at SNC fleet facilities and the SNC corporate office. The results of this assessment shall be made available for NRC review. m. At approximately 18 months after the issuance date of the CO, SNC shall conduct an effectiveness review of the required actions documented in section 5 of this CO and those Corrective Action Reports (CARs) identified in Technical Evaluation (TE) 984092. SNC shall make available to the NRC the results of this review and its proposed actions to address any identified performance gaps. 2. Upon completion of the terms of items of the CO, SNC shall provide the NRC with a letter discussing its basis for concluding that the CO has been satisfied. 3. The NRC and SNC agree that the above elements shall be incorporated into issuance of a Confirmatory Order. 4. The Regional Administrator, NRC Region II, may relax or rescind, in writing, any of the above conditions upon a showing by SNC of good cause. 5. This agreement is binding upon successors and assigns of SNC. VI In accordance with 10 CFR 2.202 and 10 CFR 2.309, any person adversely affected by this CO, other than SNC, may request a hearing within 30 calendar days of the date of issuance of this CO. 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 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, a petition for leave to intervene, 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 PO 00000 Frm 00202 Fmt 4703 Sfmt 4703 governmental entities participating under 10 CFR 2.315(c), must be filed in accordance with the NRC 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. 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 ten (10) days prior to the filing deadline, the participant should contact the Office of the Secretary by e-mail at hearing.docket@nrc.gov, or by telephone at (301) 415–1677, to request (1) a digital identification (ID) certificate, which allows the participant (or its counsel or representative) to digitally sign documents and access the ESubmittal server for any proceeding in which it is participating; and (2) advise the Secretary that the participant will be submitting a request or petition for hearing (even in instances in which the participant, or its counsel or representative, already holds an NRCissued 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 NRC’s public Web site at https:// www.nrc.gov/site-help/e-submittals/ getting-started.html. System requirements for accessing the ESubmittal server are detailed in NRC’s ‘‘Guidance for Electronic Submission,’’ which is available on the agency’s public Web site at https://www.nrc.gov/ site-help/e-submittals.html. Participants may attempt to use other software not listed on the Web site, but should note that the NRC’s E-Filing system does not support unlisted software, and the NRC Electronic Filing Help Desk will not be able to offer assistance in using unlisted software. If a participant is electronically submitting a document to the NRC in accordance with the E-Filing rule, the participant must file the document using the NRC’s online, Web-based submission form. In order to serve documents through the Electronic Information Exchange System (EIE), users will be required to install a Web browser plug-in from the NRC Web site. Further information on the Web-based submission form, including the installation of the Web browser plug-in, E:\FR\FM\01FEN1.SGM 01FEN1 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Notices is available on the NRC’s public Web site at https://www.nrc.gov/site-help/esubmittals.html. Once a participant has obtained a digital ID certificate and a docket has been created, the participant can then submit a request for hearing or petition for leave to intervene through the EIE System. Submissions should be in Portable Document Format (PDF) in accordance with NRC guidance available on the NRC public Web site at https://www.nrc.gov/site-help/esubmittals.html. A filing is considered complete at the time the documents are 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 e-mail notice confirming receipt of the document. The E-Filing system also distributes an email notice that provides access to the document to the NRC 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 documents on those participants separately. Therefore, applicants and other participants (or their counsel or representative) must apply for and receive a digital ID certificate before a hearing request/ petition to intervene is filed so that they can obtain access to the document via the E-Filing system. A person filing electronically using the agency’s adjudicatory E-Filing system may seek assistance by contacting the NRC Electronic Filing Help Desk through the ‘‘Contact Us’’ link located on the NRC Web site at https://www.nrc.gov/site-help/esubmittals.html, by e-mail at MSHD.Resource@nrc.gov, or by a tollfree call at (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, VerDate Sep<11>2014 21:23 Jan 31, 2019 Jkt 247001 express mail, or expedited delivery service to the Office of the Secretary, Sixteenth Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland, 20852, Attention: Rulemaking and Adjudications Staff. Participants filing a document in this manner are responsible for serving the document on all other participants. Filing is considered complete by firstclass 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 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. Participants are requested not to include personal privacy information, such as social security numbers, home addresses, or home phone numbers in their filings, unless an NRC regulation or other law requires submission of such information. 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. If a person (other than SNC) requests a hearing, that person shall set forth with particularity the manner in which his interest is adversely affected by this CO 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 hearing. If a hearing is held, the issue to be considered at such hearing shall be whether this CO 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 from the date of this CO 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 PO 00000 Frm 00203 Fmt 4703 Sfmt 4703 1249 extension expires if a hearing request has not been received. [FR Doc. 2019–00688 Filed 1–31–19; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION [Docket No. 50–382; NRC–2016–0078] Entergy Operations, Inc.; Waterford Steam Electric Station, Unit 3 Nuclear Regulatory Commission. ACTION: License renewal and record of decision; issuance. AGENCY: The U.S. Nuclear Regulatory Commission (NRC) has issued Renewed Facility Operating License No. NPF–38 to Entergy Operations, Inc., (EOI), the operator of the Waterford Steam Electric Station, Unit 3 (WF3), and Entergy Louisiana, LLC, the owner of WF3 (together Entergy or the licensees). Renewed Facility Operating License No. NPF–38 authorizes EOI to operate WF3 at reactor core power levels not in excess of 3,716 megawatts thermal, in accordance with the provisions of the WF3 renewed license and technical specifications. In addition, the NRC has prepared a record of decision (ROD) that supports the NRC’s decision to renew Facility Operating License No. NPF–38. DATES: The NRC issued the Renewed Facility Operating License No. NPF–38 on December 27, 2018. ADDRESSES: Please refer to Docket ID NRC–2016–0078 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 http://www.regulations.gov and search for Docket ID NRC–2016–0078. Address questions about Docket IDs in Regulations.gov to Krupskaya Castellon; telephone: 301–287–9221; email: Krupskaya.Castellon@nrc.gov. 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 publiclyavailable documents online in the ADAMS Public Documents collection at http://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– SUMMARY: E:\FR\FM\01FEN1.SGM 01FEN1

Agencies

[Federal Register Volume 84, Number 22 (Friday, February 1, 2019)]
[Notices]
[Pages 1244-1249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00688]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-348; 50-364; License Nos. NPF-2; NPF-8; EA-18-032; NRC-
2019-0038]


In the Matter of Southern Nuclear Operating Company, Inc.; Joseph 
M. Farley Nuclear Plant

AGENCY: Nuclear Regulatory Commission.

ACTION: Confirmatory order; issuance.

-----------------------------------------------------------------------

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) issued a 
confirmatory order (Order) to Southern Nuclear Operating Company, Inc., 
(the licensee), confirming the agreement reached in an Alternative 
Dispute Resolution mediation session held on September 21-22, 2018. 
This Order will ensure the licensee restores compliance with NRC 
regulations.

DATES: The confirmatory order was issued on January 29, 2019.

ADDRESSES: Please refer to Docket ID NRC-2019-0038 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 http://www.regulations.gov and search for Docket ID NRC-2019-0038. Address 
questions about dockets in Regulations.gov to Krupskaya Castellon; 
telephone: 301-287-9221; e-mail: Krupskaya.Castellon@nrc.gov. 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 Document collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS 
Search.'' For problems with ADAMS, contact the NRC's Public Document 
Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or by e-
mail to pdr.resource@nrc.gov. The ADAMS accession number for each 
document referenced (if it is available in ADAMS) is provided the first 
time that it is mentioned in this document.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Scott Sparks, Region II, U.S. Nuclear 
Regulatory Commission, Atlanta, Georgia 30303-1257; telephone: 404-997-
4422; email: Scott.Sparks@nrc.gov.

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Atlanta, Georgia, this 29th day of January 2019.

    For the Nuclear Regulatory Commission.
Catherine Haney,
Regional Administrator.

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

    In the Matter of Southern Nuclear Operating Company, Inc., Joseph 
M. Farley Nuclear Plant

Docket Nos. 50-348; 50-364

License Nos. NPF-2; NPF-8

 EA-18-032

CONFIRMATORY ORDER MODIFYING LICENSE (EFFECTIVE UPON ISSUANCE)

I

    Southern Nuclear Operating Company, Inc., (SNC or Licensee) is the 
holder of Operating License Nos. NPF-2, NPF-8, DPR-57, NPF-5, NPF-68, 
NPF-81, and Combined Licenses NPF-91 and NPF-92, issued by the U.S. 
Nuclear Regulatory Commission (NRC or Commission) pursuant to part 50 
and part 52 of title 10 of the Code of Federal Regulations (10 CFR). 
The licenses authorize the operation of the Joseph M. Farley Nuclear 
Plant (FNP) Units 1 and 2, the Edwin I. Hatch Nuclear Plant, Units 1 
and 2, the Vogtle Electric Generating Plant, Units 1 and 2, and the 
combined construction and operation of Vogtle Electric Generating 
Plant, Units 3 and 4, in accordance with conditions specified therein. 
These facilities are located in Columbia, Alabama, Baxley, Georgia, and 
Waynesboro, Georgia, respectively.
    This Confirmatory Order (CO) is the result of an agreement reached 
during an alternative dispute resolution (ADR) mediation session 
conducted on September 21-22, 2018.

II

    On April 21, 2017, the U. S. Nuclear Regulatory Commission's (NRC) 
Office of Investigations (OI) initiated an investigation, to determine 
if a Force-on-Force/Target Set Coordinator, who was also a Safeguards 
Information (SGI) custodian at Farley Nuclear Plant (FNP), deliberately 
failed to properly secure SGI and follow plant procedures. The 
investigation was completed on March 29, 2018, and the results were 
documented in OI Report No. 2-2017-022.
    The NRC conducted a review of the OI report, and documented the 
results of this review in NRC Inspection Report 05000348/2018411 and 
05000364/2018411, dated July 27, 2018 (Agency-wide Documents Access and 
Management System (ADAMS)

[[Page 1245]]

accession number ML18208A305). The inspection report identified one 
apparent violation (AV), involving the licensee's failure to store SGI 
in a locked security storage container while unattended and the failure 
to maintain an inventory of SGI documents located inside a security 
storage container and to document the retrieval of SGI when in use. The 
specific AV (updated to reflect the correct title of the FNP employee 
involved) was stated as follows:
    10 CFR 73.21(a)(1), Protection of Safeguards Information: 
Performance requirements, states, in part, Each licensee, or other 
person who produces, receives, or acquires Safeguards Information [SGI] 
shall ensure that it is protected against unauthorized disclosure. To 
meet this general performance requirement, such licensees, or other 
persons subject to this section shall: (i) Establish, implement, and 
maintain an information protection system that includes the applicable 
measures for Safeguards Information specified in 10 CFR 73.22 related 
to power reactors.
    10 CFR 73.22(c)(2), Protection of Safeguards Information: Specific 
requirements, states in part, that while unattended, Safeguards 
information shall be stored in a locked security storage container.
    Southern Nuclear Company (SNC) Procedure NMP-AD-013-003, ``Physical 
Protection of Safeguards Information (SGI),'' Version 2.1, requires SGI 
custodians to maintain an inventory of documents inside a security 
storage container and log any retrieval of an SGI document for use. 
This procedure also requires that, while unattended, SNC Safeguards 
Information shall be stored in an approved Security Storage Container.
    Contrary to the above, on multiple dates in August, 2016, the 
licensee failed to store SGI in a locked security storage container 
while unattended and failed to maintain an inventory of SGI located 
inside a security storage container and to document the retrieval of 
SGI when in use. Specifically, a former Force-on-Force/Target Set 
Coordinator, who served as an SGI custodian, failed to store SGI in a 
locked security storage container while unattended on the following 
occasions: 1) SGI was left unattended in the employee's private 
residence on or approximately August 18-20, 2016; 2) SGI was left 
unattended in a hotel room for approximately 1.5 hours on August 20, 
2016; 3) SGI was left unattended in a rental car on August 25, 2016, 
for approximately 11 hours; and 4) A laptop computer containing SGI was 
left unattended in the employee's private residence on or approximately 
August 25-26, 2016. Additionally, the licensee failed to maintain an 
inventory and document the retrieval of SGI from the security storage 
container when the employee reproduced an SGI document, placed the SGI 
in a binder and removed it for use from the security storage container.
    The NRC's inspection report of July 27, 2018, also documented that 
the OI investigation was conducted to determine whether the FNP 
employee deliberately failed to properly secure safeguards information 
(SGI) and follow plant procedures. In this case, the employee indicated 
his knowledge of regulatory and procedural requirements involving the 
handling of SGI. Additionally, the employee had received SGI training 
and had a clear understanding of SNC's SGI handling requirements. 
However, the Farley employee deliberately failed to follow SNC 
procedures, and his actions were determined by the NRC to be in 
violation of 10 CFR 50.5.
    In response to the NRC's inspection report of July 27, 2018, SNC 
advised of its desire to participate in the Agency's ADR program to 
resolve the enforcement aspects of this matter.

III

    On September 21-22, 2018, the NRC and SNC met in an ADR session 
mediated by a professional mediator, arranged through Cornell 
University's Institute on Conflict Resolution. ADR is a process in 
which a neutral mediator with no decision-making authority assists the 
parties in reaching an agreement or resolving any differences regarding 
their dispute. This CO is issued pursuant to the agreement reached 
during the ADR process. The elements of the agreement consist of the 
following:
    1. The NRC and SNC agreed that the issue described in Section II of 
this CO represents a violation of regulatory requirements, the NRC and 
SNC concluded that the violation occurred due to the deliberate 
misconduct of a former Force-on-Force/Target Set Coordinator at FNP.
    2. Based on a review of the incident, SNC completed a number of 
corrective actions and enhancements to preclude recurrence of the 
violation, including but not limited to the following:
    a. Immediate/interim corrective actions included: initiated a 
corporate security investigation; stopped all transportation of SGI 
without approval from the site security manager; briefed all SGI 
custodians and verified their understanding of how to properly use and 
handle SGI; performed the SGI safe inventory at Farley Nuclear Plant; 
issued a security department instruction on NMP-AD-013-003 requirements 
for SGI on laptop hard drives; evaluated if gaps existed in their 
Behavior Observation Program as related to the individual; developed a 
communication strategy for both internal and external communications 
related to the issue; performed an assessment to determine how 
effectively FNP had responded and what additional actions should be 
taken by means of an external resource knowledgeable of security; and 
issued a security department instruction to revise the approval 
authority for off-site transport of SGI to the Fleet Security Director;
    b. Other prompt/intermediate corrective actions included: revised 
the SGI procedures to address issues identified during the root cause 
evaluation; briefed all SNC Safeguards Information custodians on the 
findings of the root cause including Operating Experience (OE) and 
lessons learned; and conducted external benchmarking with other 
utilities regarding SGI controls during off-site transportation.
    3. Based on SNC's review of the incident and NRC's concerns with 
respect to precluding recurrence of the violation, SNC agreed to 
implement the following corrective actions and enhancements:
    a. Within 4 months of the issuance date of the Confirmatory Order 
(CO), SNC shall revise procedures to periodically and randomly audit 
SGI records to determine compliance with existing procedures and 
regulatory requirements. At a minimum, three random audits of SGI 
records shall be performed at each SNC nuclear plant each year, for a 
period of three years from the date of issuance of this CO. Identified 
deficiencies shall be entered into the CAP for tracking corrective 
actions to completion, consistent with existing SGI requirements. The 
audit shall be conducted by personnel knowledgeable of SGI, independent 
from the station. The results of such audits shall be made available 
for NRC review.
    b. Upon issuance of the CO, SNC shall maintain applicable SGI 
procedures to provide specific direction for transporting SGI away from 
the Protected Area and Owner Controlled Area of an SNC facility, 
including packaging requirements and guidance on positive controls on 
business travel that may involve an overnight stay, consistent with 
NMP-AD-013-003, ``Physical Protection of Safeguards Information 
(SGI),'' revision 5.1.

[[Page 1246]]

    c. Upon issuance of the CO, SNC shall maintain applicable SGI 
procedures to ensure that SGI handling requires the conduct of a pre-
job brief for all qualified individuals requesting to check out SGI for 
use, consistent with NMP-AD-013-003, ``Physical Protection of 
Safeguards Information (SGI),'' revision 5.1.
    d. Internal Communication:
    i. Within 2 months of the issuance date of the Confirmatory Order, 
an SNC senior executive shall develop a Communication (either verbal, 
written, electronic, or video) describing the circumstances leading to 
this CO, explain that willful violations will not be tolerated, and, as 
a result, SNC shall be undertaking efforts to confirm whether 
individuals are engaging in such conduct at any of its sites. The 
Communication shall stress the importance of procedural use and 
adherence and ensuring that documents are complete and accurate. The 
Communication shall also stress the potential consequences for engaging 
in willful noncompliance. This message shall be balanced with the 
recognition that people do make mistakes, and when that happens action 
shall be taken by SNC to address the mistake. The contents of this 
communication shall be retained and made available for NRC review 
consistent with the terms of this CO.
    ii. Within 6 months of the completion of Section III.3.d.i, this 
Communication will be distributed to all SNC employees and contractors 
with unescorted access authorization to the SNC operating sites. Each 
recipient of the Communication referenced in Section III.3.d.i shall 
read and sign a ``commitment to compliance'' statement included with 
the Communication (subject to any collective bargaining obligations 
that may apply).
    iii. Within 2 months of the completion of Section III.3.d.i, and 
for three years following the issuance of this CO, this Communication 
will be provided to all individuals receiving unescorted access 
authorization to the SNC operating sites.
    iv. With respect to the Vogtle 3&4 site:
    1. Within 6 months of the completion of Section III.3.d.i, and for 
a period of 3 years from the date of the CO, SNC supervisors and above 
shall receive the Communication (referenced in Section III.3.d.i). Each 
recipient of the Communication referenced in Section III.3.d.i shall 
read and sign a ``commitment to compliance'' statement included with 
the Communication (subject to any collective bargaining obligations 
that may apply). During this 3 year period individuals promoted to a 
supervisory position shall receive the Communication and read and sign 
the ``commitment to compliance'' statement.
    2. The contractor superintendents covered by this paragraph will 
include those who are superintendents when SNC initiates actions 
described in Section III.3.d.iv.1. Within a period of 6 months from the 
date of issuance of this CO, all contractor superintendents and above 
who have fitness for duty or unescorted access authorization to the 
controlled construction area will receive the Communication and read 
and sign the ``commitment to compliance'' statement included with the 
Communication referenced in Section III.3.d.i above. Additionally, 
contractor personnel covered by Section III.3.d.iv.2 shall commit to 
inform their reports of the contents of the Communication.
    3. Within 2 months of completion of Section III.3.d.i and for three 
years following the issuance of this CO, all individuals receiving 
fitness for duty or unescorted access authorization to the controlled 
construction area will receive the Communication prior to the granting 
of access.
    e. Within 6 months of the issuance date of the Confirmatory Order 
and at 12 month intervals thereafter, SNC shall complete retraining of 
all SNC SGI custodians regarding SGI control, access, receipt, 
transportation, inventory, transmittal, and storage.
    f. Upon issuance of the CO, SNC shall maintain SGI procedures 
regarding storage of SGI originating from other permanent repositories 
and the inventory of SGI, consistent with NMP-AD-013-003, ``Physical 
Protection of Safeguards Information (SGI),'' revision 5.1.
    g. Upon issuance of the CO, SNC shall maintain certain sections of 
SGI procedures as ``reference use'' (i.e., the procedure is required to 
be present when performing the associated action steps) consistent with 
NMP-AD-013-003, ``Physical Protection of Safeguards Information 
(SGI),'' revision 5.1, and NMP-AD-013-005, ``Transmittal and Receipt of 
Safeguards Information (SGI),'' Revision 3.0.
    h. Within 12 months from the date of this Confirmatory Order, SNC 
shall deliver a presentation describing the event that formed the basis 
for this violation to include corporate and site oversight, and 
accountability responsibilities. The presentation shall also emphasize 
procedural adequacy, procedural adherence, and the need for management 
ownership of integrity issues. The presentation shall be delivered at 
one of the following: the Nuclear Security Working Group Meeting, the 
Security/Emergency Preparedness Summit, the NRC's Regulatory 
Information Conference, the NEI Regulatory Affairs Forum, or the ANS 
Utility Working Group Conference. In the event that SNC cannot deliver 
a presentation at one of the aforementioned events, SNC shall seek 
approval from the NRC for an alternative venue. The presentation shall 
be made available for NRC review.
    i. Within 4 months of the issuance date of the Confirmatory Order, 
SNC shall revise procedures to require that all transportation of SGI 
material outside of the owner controlled area shall require approval of 
an SNC Corporate Security Manager.
    j. Within 3 months from the date of this Confirmatory Order, SNC 
shall revise procedures to provide additional instruction following an 
incident having the potential for a Part 73 violation of green or 
higher significance. The instruction shall require that an SNC Security 
organization not involved in the event provides oversight in 
determining the proper corrective action program response (e.g., 
corporate led security investigation or fact finding). Documentation 
shall be retained and made available for NRC review consistent with the 
terms of this CO.
    k. Within 9 months of the issuance date of the Confirmatory Order, 
SNC shall conduct a benchmarking activity of at least two other non-SNC 
entities which handle SGI, for the purposes of determining best 
practices related to the SGI program. Based on the best practices 
identified by SNC, SNC shall revise program elements to facilitate SGI 
program improvements. The results of such benchmarking shall be made 
available for NRC review.
    l. Within 6 months of the issuance date of the Confirmatory Order, 
SNC shall complete an independent assessment of the effectiveness of 
prior corrective actions since 2011 and an assessment of adverse trends 
that are associated with SGI incidents at SNC fleet facilities and the 
SNC corporate office. The results of this assessment shall be made 
available for NRC review.
    m. At approximately 18 months after the issuance date of the CO, 
SNC shall conduct an effectiveness review of the required actions 
documented in Section V of this CO and those Corrective Action Reports 
(CARs) identified in Technical Evaluation (TE) 984092. SNC shall make 
available to the NRC the results of this review and its proposed 
actions to address any identified performance gaps.
    4. For future NRC civil penalty assessment purposes, this CO shall 
be considered an escalated enforcement

[[Page 1247]]

action for the FNP (50-348, 50-364) dockets only.
    5. The NRC concludes that the security significance of the SGI 
incident, including the deliberate aspects is consistent with escalated 
enforcement as described in the NRC Enforcement Policy. Additionally, a 
civil penalty would likely have been proposed, consistent with the 
Enforcement Policy civil penalty assessment approach. However, in 
consideration of the commitments delineated in Section V of this CO, 
the NRC agrees not to cite the violation, and agrees not to propose a 
civil penalty for all matters discussed in the NRC's IR to SNC dated 
July 27, 2018 (EA-18-032).
    6. Upon completion of the terms of items of the CO, SNC shall 
provide the NRC with a letter discussing its basis for concluding that 
the CO has been satisfied.
    7. The NRC and SNC agree that the above elements shall be 
incorporated into issuance of a Confirmatory Order.
    8. This agreement is binding upon successors and assigns of SNC.
    On January 9, 2019, SNC consented to issuance of this Confirmatory 
Order with the commitments, as described in Section V below. SNC 
further agreed that this Confirmatory Order is to be effective upon 
issuance and that it has waived its right to a hearing.

IV

    Because SNC has agreed to take additional actions to address NRC 
concerns, as set forth in Section III above, the NRC has concluded that 
its concerns can be resolved through issuance of this CO.
    I find that SNC's 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 
SNC's commitments be confirmed by this CO. Based on the above and SNC's 
consent, this CO is effective upon issuance.

V

    Accordingly, pursuant to Sections 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 and 10 CFR part 50, IT IS 
HEREBY ORDERED, THAT LICENSE NOS. NPF-2, NPF-8, DPR-57, NPF-5, NPF-68, 
NPF-81, NPF-91, AND NPF-92 ARE MODIFIED AS FOLLOWS:
    1. SNC agrees to implement the following corrective actions and 
enhancements:
    a. Within 4 months of the issuance date of the Confirmatory Order 
(CO), SNC shall revise procedures to periodically and randomly audit 
SGI records to determine compliance with existing procedures and 
regulatory requirements. At a minimum, three random audits of SGI 
records shall be performed at each SNC nuclear plant each year, for a 
period of three years from the date of issuance of this CO. Identified 
deficiencies shall be entered into the CAP for tracking corrective 
actions to completion, consistent with existing SGI requirements. The 
audit shall be conducted by personnel knowledgeable of SGI, independent 
from the station. The results of such audits shall be made available 
for NRC review.
    b. Upon issuance of the CO, SNC shall maintain applicable SGI 
procedures to provide specific direction for transporting SGI away from 
the Protected Area and Owner Controlled Area of an SNC facility, 
including packaging requirements and guidance on positive controls on 
business travel that may involve an overnight stay, consistent with 
NMP-AD-013-003, ``Physical Protection of Safeguards Information 
(SGI),'' revision 5.1.
    c. Upon issuance of the CO, SNC shall maintain applicable SGI 
procedures to ensure that SGI handling requires the conduct of a pre-
job brief for all qualified individuals requesting to check out SGI for 
use, consistent with NMP-AD-013-003, ``Physical Protection of 
Safeguards Information (SGI),'' revision 5.1.
    d. Internal Communication:
    i. Within 2 months of the issuance date of the Confirmatory Order, 
an SNC senior executive shall develop a Communication (either verbal, 
written, electronic, or video) describing the circumstances leading to 
this CO, explain that willful violations will not be tolerated, and, 
that as a result, SNC shall be undertaking efforts to confirm whether 
individuals are engaging in such conduct at any of its sites. The 
Communication shall stress the importance of procedural use and 
adherence and ensuring that documents are complete and accurate. The 
Communication shall also stress the potential consequences for engaging 
in willful noncompliance. This message shall be balanced with the 
recognition that people do make mistakes, and when that happens action 
shall be taken by SNC to address the mistake. The contents of this 
communication shall be retained and made available for NRC review 
consistent with the terms of this CO.
    ii. Within 6 months of the completion of Section V.1.d.i, this 
Communication will be provided to all SNC employees and contractors 
with unescorted access authorization to the SNC operating sites. Each 
recipient of the Communication referenced in Section V.1.d.i shall read 
and sign a ``commitment to compliance'' statement included with the 
Communication (subject to any collective bargaining obligations that 
may apply).
    iii. Within 2 months of the completion of Section V.1.d.i, and for 
three years following the issuance of this CO, this Communication will 
be provided to all individuals receiving unescorted access 
authorization to the SNC operating sites.
    iv. With respect to the Vogtle 3&4 site:
    1. Within 6 months of the completion of Section V.1.d.i, and for a 
period of 3 years from the date of the CO, SNC supervisors and above 
shall receive the Communication referenced in Section V.1.d.i. Each 
recipient of the Communication referenced in Section V.1.d.i shall read 
and sign a ``commitment to compliance'' statement included with the 
Communication (subject to any collective bargaining obligations that 
may apply). During this 3 year period individuals promoted to a 
supervisory position shall receive the Communication and read and sign 
the ``commitment to compliance'' statement.
    2. The contractor superintendents covered by this paragraph will 
include those who are superintendents when SNC initiates actions 
described in Section V.1.d.iv.1. Within a period of 6 months from the 
date of issuance of this CO, all contractor superintendents and above 
who have fitness for duty or unescorted access authorization to the 
controlled construction area will receive the Communication and read 
and sign the ``commitment to compliance'' statement included with the 
Communication referenced in Section V.1.d.i above. Additionally, 
contractor personnel covered by Section V.1.d.iv.2 shall commit to 
inform their reports of the contents of the Communication.
    3. Within 2 months of the completion of Section V.1.d.i and for 
three years following the issuance of this CO, all individuals 
receiving fitness for duty or unescorted access authorization to the 
controlled construction area will receive the Communication prior to 
the granting of access.
    e. Within 6 months of the issuance date of the Confirmatory Order 
and at 12 month intervals thereafter, SNC shall complete retraining of 
all SNC SGI custodians regarding SGI control,

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access, receipt, transportation, inventory, transmittal, and storage.
    f. Upon issuance of the CO, SNC shall maintain SGI procedures 
regarding storage of SGI originating from other permanent repositories 
and the inventory of SGI, consistent with NMP-AD-013-003, ``Physical 
Protection of Safeguards Information (SGI),'' revision 5.1.
    g. Upon issuance of the CO, SNC shall maintain certain sections of 
SGI procedures as ``reference use'' (i.e., the procedure is required to 
be present when performing the associated action steps) consistent with 
NMP-AD-013-003, ``Physical Protection of Safeguards Information 
(SGI),'' revision 5.1, and NMP-AD-013-005, ``Transmittal and Receipt of 
Safeguards Information (SGI),'' revision 3.0.
    h. Within 12 months from the date of this Confirmatory Order, SNC 
shall deliver a presentation describing the event that formed the basis 
for this violation and including corporate and site oversight, and 
accountability responsibilities. The presentation shall also emphasize 
procedural adequacy, procedural adherence, and the need for management 
ownership of integrity issues. The presentation shall be delivered at 
one of the following: the Nuclear Security Working Group Meeting, the 
Security/Emergency Preparedness Summit, the NRC's Regulatory 
Information Conference, the NEI Regulatory Affairs Forum, or the ANS 
Utility Working Group Conference. In the event that SNC cannot deliver 
a presentation at one of the aforementioned events, SNC shall seek 
approval from the NRC for an alternative venue. The presentation shall 
be made available for NRC review.
    i. Within 4 months of the issuance date of the Confirmatory Order, 
SNC shall revise procedures to require that all transportation of SGI 
material outside of the owner controlled area shall require approval by 
an SNC Corporate Security Manager.
    j. Within 3 months from the date of this Confirmatory Order, SNC 
shall revise procedures to provide additional instruction following an 
incident having the potential for a Part 73 green or higher violation. 
The instruction shall require that an SNC Security organization not 
involved in the event provides oversight in determining the proper 
corrective action program response (e.g., corporate led security 
investigation or fact finding). Documentation shall be retained and 
made available for NRC review consistent with the terms of this order.
    k. Within 9 months of the issuance date of the Confirmatory Order, 
SNC shall conduct a benchmarking activity of at least two other non-SNC 
entities which handle SGI, for the purposes of determining best 
practices related to the SGI program. Based on the best practices 
identified by SNC, SNC shall revise program elements to facilitate SGI 
program improvements. The results of such benchmarking shall be made 
available for NRC review.
    l. Within 6 months of the issuance date of the Confirmatory Order, 
SNC shall complete an independent assessment of the effectiveness of 
prior corrective actions since 2011 and an assessment of adverse trends 
that are associated with SGI incidents at SNC fleet facilities and the 
SNC corporate office. The results of this assessment shall be made 
available for NRC review.
    m. At approximately 18 months after the issuance date of the CO, 
SNC shall conduct an effectiveness review of the required actions 
documented in section 5 of this CO and those Corrective Action Reports 
(CARs) identified in Technical Evaluation (TE) 984092. SNC shall make 
available to the NRC the results of this review and its proposed 
actions to address any identified performance gaps.
    2. Upon completion of the terms of items of the CO, SNC shall 
provide the NRC with a letter discussing its basis for concluding that 
the CO has been satisfied.
    3. The NRC and SNC agree that the above elements shall be 
incorporated into issuance of a Confirmatory Order.
    4. The Regional Administrator, NRC Region II, may relax or rescind, 
in writing, any of the above conditions upon a showing by SNC of good 
cause.
    5. This agreement is binding upon successors and assigns of SNC.

VI

    In accordance with 10 CFR 2.202 and 10 CFR 2.309, any person 
adversely affected by this CO, other than SNC, may request a hearing 
within 30 calendar days of the date of issuance of this CO. 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 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, a petition for leave to intervene, 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 participating under 10 CFR 2.315(c), 
must be filed in accordance with the NRC 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. 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 
ten (10) days prior to the filing deadline, the participant should 
contact the Office of the Secretary by e-mail at 
hearing.docket@nrc.gov, or by telephone at (301) 415-1677, to request 
(1) a digital identification (ID) certificate, which allows the 
participant (or its counsel or representative) to digitally sign 
documents and access the E-Submittal server for any proceeding in which 
it is participating; and (2) advise the Secretary that the participant 
will be submitting a request or petition for hearing (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 NRC's public Web site at https://www.nrc.gov/site-help/e-submittals/getting-started.html. System requirements for accessing the 
E-Submittal server are detailed in NRC's ``Guidance for Electronic 
Submission,'' which is available on the agency's public Web site at 
https://www.nrc.gov/site-help/e-submittals.html. Participants may 
attempt to use other software not listed on the Web site, but should 
note that the NRC's E-Filing system does not support unlisted software, 
and the NRC Electronic Filing Help Desk will not be able to offer 
assistance in using unlisted software.
    If a participant is electronically submitting a document to the NRC 
in accordance with the E-Filing rule, the participant must file the 
document using the NRC's online, Web-based submission form. In order to 
serve documents through the Electronic Information Exchange System 
(EIE), users will be required to install a Web browser plug-in from the 
NRC Web site. Further information on the Web-based submission form, 
including the installation of the Web browser plug-in,

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is available on the NRC's public Web site at https://www.nrc.gov/site-help/e-submittals.html.
    Once a participant has obtained a digital ID certificate and a 
docket has been created, the participant can then submit a request for 
hearing or petition for leave to intervene through the EIE System. 
Submissions should be in Portable Document Format (PDF) in accordance 
with NRC guidance available on the NRC public Web site at https://www.nrc.gov/site-help/e-submittals.html. A filing is considered 
complete at the time the documents are 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 e-mail notice confirming 
receipt of the document. The E-Filing system also distributes an e-mail 
notice that provides access to the document to the NRC 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 documents on those participants separately. 
Therefore, applicants and other participants (or their counsel or 
representative) must apply for and receive a digital ID certificate 
before a hearing request/petition to intervene is filed so that they 
can obtain access to the document via the E-Filing system.
    A person filing electronically using the agency's adjudicatory E-
Filing system may seek assistance by contacting the NRC Electronic 
Filing Help Desk through the ``Contact Us'' link located on the NRC Web 
site at https://www.nrc.gov/site-help/e-submittals.html, by e-mail at 
MSHD.Resource@nrc.gov, or by a toll-free call at (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, Sixteenth 
Floor, One White Flint North, 11555 Rockville Pike, Rockville, 
Maryland, 20852, Attention: Rulemaking and Adjudications Staff. 
Participants filing a document 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 
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. Participants are requested not to 
include personal privacy information, such as social security numbers, 
home addresses, or home phone numbers in their filings, unless an NRC 
regulation or other law requires submission of such information. 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.
    If a person (other than SNC) requests a hearing, that person shall 
set forth with particularity the manner in which his interest is 
adversely affected by this CO 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 hearing. If a hearing is held, the issue to be considered 
at such hearing shall be whether this CO 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 from the date of 
this CO 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.

[FR Doc. 2019-00688 Filed 1-31-19; 8:45 am]
 BILLING CODE 7590-01-P