[Federal Register Volume 63, Number 120 (Tuesday, June 23, 1998)]
[Notices]
[Pages 34202-34204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16649]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 50-498/499; License Nos. NPF-76, 80 EA 97-341]


STP Nuclear Operating Company; STP Nuclear Generating Station; 
Confirmatory Order Modifying License (Effective Immediately)

I

    STP Nuclear Operating Company (STP or the Licensee) is an NRC 
Licensee and the holder of Facility Operating License Nos. NPF-76 and 
NPF-80, issued by the Nuclear Regulatory Commission (NRC or

[[Page 34203]]

Commission) pursuant to 10 CFR Part 50 on March 22, 1988 and March 28, 
1989 respectfully . The licenses authorize operation of the STP 
Electric Generating Station (the Station or facility) in accordance 
with the conditions specified in the license. The facility is located 
on the Licensee's site in Wadsworth, Texas.

II

    NRC Office of Investigations (OI) Report Nos. 4-96-035 and 4-96-059 
concluded that STP had subjected four employees to a hostile work 
environment created by the former Electrical/Instrumentation & Controls 
(E/I&C) division manager in retaliation for the employees' having 
engaged in protected activities, and had thus violated the Employee 
Protection requirements, 10 CFR 50.7. The NRC staff, by letter dated 
January 8, 1998, invited the Licensee to a predecisional enforcement 
conference (PEC) to discuss the apparent violation, which was fully 
detailed in that letter. On February 26, 1998, a PEC was held at the 
NRC offices of NRC Region IV in Arlington, Texas. By letter dated March 
12, 1998, the Licensee submitted additional data and information 
requested by the NRC staff during the PEC.
    The Licensee maintains that no violation of 10 CFR 50.7 occurred, 
and that it took prompt and effective corrective action in response to 
concerns raised by its employees regarding the behavior of the E/I&C 
division manager, including discipline in accordance with the STP 
Constructive Discipline Policy, appropriate reflection in annual 
performance appraisals of the E/I&C division manager, the provision of 
peer and management counseling to the E/I&C division manager and 
assistance from industrial psychologists. The actions culminated in the 
resignation of the E/I&C division manager from STP in mid-1996. In 
addition, the Licensee states that it took a number of specific steps 
to address concerns which arose in the E/I&C Division in 1996. These 
included the STP President's meetings with division personnel, similar 
meetings conducted by the Vice President, Nuclear Engineering, and the 
Design Engineering Department Manager, as well as one-on-one meetings 
between the new division manager and all division personnel. In these 
meetings, and in station-wide communications, the Licensee advised 
employees that it had settled the claims filed by four facility 
employees with the United States Department of Labor (DOL), which claim 
alleged violations of the Employee Protection requirements of Section 
211 of the Energy Reorganization Act, and the fact that the NRC was 
considering escalated enforcement action. The Licensee states that it 
intends to keep station personnel apprised of the results of the NRC's 
consideration of this matter.
    The Licensee maintains that employees have not been deterred from 
reporting safety concerns as a result of events in the E/I&C division. 
Specifically, the Licensee states that a 1994 Climate Assessment of 
employee attitudes in the E/I&C division does not suggest that 
employees were subject to harassment or are reluctant to use the 
routine systems for reporting concerns. The Licensee also maintains 
that annual surveys conducted between 1993 and 1997, both facility-wide 
and by department, by Behavioral Consultant Services, Inc., do not 
suggest the existence of a hostile work environment in the E/I&C 
division. In addition, the Licensee states that implementation of its 
new Corrective Action Program was reviewed by a team of NRC inspectors 
in early 1996. Specifically, the NRC team reviewed a sample of 
Condition Reports and interviewed various engineers regarding their 
roles and responsibilities to determine whether significant issues were 
being identified and corrected in a timely fashion and how those 
problems were documented. The NRC team found that all the interviewed 
engineers were aware of when and how to document identified problems. 
See NRC Inspection Report 50-498/96-11; 50-499/96-11 (April 12, 1996).

III

    The Licensee has planned additional actions to assess the station 
environment and to enhance safety-consciousness, as described in 
Attachment D to the March 12, 1998, submission. Specifically, the 
Licensee plans: (1) ``Comprehensive Cultural Assessments'' to be 
performed by an independent consultant at 18 to 24 month intervals, and 
intermediate ``mini'' surveys in selected areas; (2) annual ratings of 
supervisors and managers by employees via the Licensee's ``Leadership 
Assessment Tool'; and (3) a mandatory continuing training program for 
all supervisors and managers. The training program will have the 
objectives of reinforcing the importance of maintaining a safety-
conscious work environment and of assisting managers and supervisors in 
dealing with conflicts in the work place in the context of a safety-
conscious work environment. The training program will also include a 
specific course entitled ``Safety Speaking.'' During a telephone 
conversation with the NRC staff on May 29, 1998, the Licensee agreed to 
include in its mandatory training for all supervisors and managers 
training on the requirements of 10 CFR 50.7, including, but not limited 
to, what constitutes protected activity and what constitutes 
discrimination, and appropriate responses to the raising of safety 
concerns by employees.

IV

    Since the Licensee settled the four employee protection complaints 
prior to an evidentiary hearing before, and prior to a finding that 
discrimination had occurred by, the United States Department of Labor; 
since the Licensee took corrective actions as outlined above; and since 
the Licensee has planned actions to monitor the safety environment and 
to promote an atmosphere conducive to the raising of safety concerns by 
employees without fear of retaliation, the NRC staff is satisfied that 
its concerns regarding employee protection at South Texas Project 
Electric Generating Station can be resolved by confirming the 
Licensee's plans for further corrective action by this Order. 
Accordingly, the staff is exercising its enforcement discretion 
pursuant to Section VII B.6 of the NRC Enforcement Policy and will not 
pursue a Notice of Violation or a civil penalty in this case.
    By letter dated May 29, 1998, the Licensee consented to issuance of 
this Order with the commitments described in Section V, below, and to 
waive its right to a hearing on this Order. The Licensee further 
consented to the immediate effectiveness of this Order.
    I find that the Licensee's commitments, as set forth in Section V, 
below, are acceptable and necessary and conclude that with these 
commitments, the Licensee's process for addressing employee protection 
and safety concerns will be enhanced. In view of the foregoing, I have 
determined that public health and safety require that the Licensee's 
commitments be confirmed by this Order. Based on the above and the 
Licensee's consent, this Order is immediately effective upon issuance.

V

    Accordingly, pursuant to sections 103, 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, 
Effective Immediately, That License Nos. NPF-76 and NPF-80 Are Modified 
As Follows:
    1. Beginning in 1998, the STP Nuclear Operating Company will 
integrate into

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its overall program for enhancing the work environment and safety 
culture at the facility a ``Comprehensive Cultural Assessment'', as 
described in Attachment D to the Licensee's March 12, 1998, submission, 
to be performed by an independent contractor. The Cultural Assessment 
will include both a written survey of employees (including supervision 
and management) and baseline contractors, and confidential interviews 
of selected individuals. The first assessment is scheduled for the 
second quarter of 1998 and will be performed at least three more times 
at intervals of 18 to 24 months. Annual ``mini'' surveys will be 
conducted and shall include, but not be limited to, annual surveys 
through at least the year 2002. Before conducting each mini-survey, the 
Licensee will identify to the NRC Regional Administrator the 
departments and divisions to be surveyed. The Licensee will submit to 
the NRC for review all Cultural Assessment results, including all 
intermediate ``mini'' surveys. Within 60 days of receipt of the survey 
results, the Licensee will provide to the NRC Regional Administrator 
any plans necessary to address issues raised by the survey results.
    2. The STP Nuclear Operating Company will conduct annual ratings of 
supervisors and managers by employees via the ``Leadership Assessment 
Tool'', as described in Attachment D to the Licensee's March 12, 1998, 
submission, through at least the year 2002.
    3. The STP Nuclear Operating Company will conduct a mandatory 
continuing training program for all supervisors and managers. This 
program will include:
    (a) Scheduled training on building positive relationships, as 
outlined in Attachment D to the Licensee's March 12, 1998, submission. 
The training program will have the objective of reinforcing the 
importance of maintaining a safety-conscious work environment and 
assisting managers and supervisors in dealing with conflicts in the 
work place in the context of a safety-conscious work environment. The 
training program also will include a course entitled ``Safely 
Speaking,'' as described in Attachment D to the Licensee's March 12, 
1998, submission; and
    (b) Annual training on the requirements of 10 CFR 50.7, through at 
least the year 2002, including, but not limited to, what constitutes 
protected activity and what constitutes discrimination, and appropriate 
responses to the raising of safety concerns by employees. Such training 
shall stress the freedom of employees in the nuclear industry to raise 
safety concerns without fear of retaliation by their supervisors or 
managers.
    4. The licensee shall issue a site-wide publication to inform its 
employees and contractor employees of this Confirmatory Order as well 
as their rights to raise safety concerns to the NRC and their 
management without fear of retaliation.
    The Regional Administrator, Region IV, may relax or rescind, in 
writing, any of the above conditions upon a showing by the Licensee of 
good cause.

VI

    Any person adversely affected by this Confirmatory Order, other 
than the Licensee, may request a hearing within 20 days of its 
issuance. 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, D.C. 20555, and include 
a statement of good cause for the extension. Any request for a hearing 
shall be submitted to the Secretary, U.S. Nuclear Regulatory 
Commission, ATTN: Chief, Rulemaking and Adjudications Staff, 
Washington, D.C. 20555. Copies of the hearing request shall also be 
sent to the Director, Office of Enforcement, U.S. Nuclear Regulatory 
Commission, Washington D.C. 20555, to the Deputy Assistant General 
Counsel for Enforcement at the same address, to the Regional 
Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 400, 
Arlington, TX 76011-8064, and to the Licensee. If such a person 
requests a hearing, that person shall set forth with particularity the 
manner in which his interest is adversely affected by this Order and 
shall address the criteria set forth in 10 CFR 2.714(d).
    If the 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 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 IV above shall be final 20 days from the date of 
this Order without further order or proceeding. If an extension of time 
requesting a hearing has been approved, the provisions specified in 
Section IV shall be final when the extension expires if a hearing 
request has not been received. AN ANSWER OR A REQUEST FOR A HEARING 
SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF THIS ORDER.

    Dated at Rockville, Maryland this 9th day of June 1998.

    For the U.S. Nuclear Regulatory Commission.
Ashok A. Thadani,
Deputy Executive Director for Regulatory Effectiveness.
[FR Doc. 98-16649 Filed 6-22-98; 8:45 am]
BILLING CODE 7590-01-P