r

"

. .

Aopendix A

NOTICE OF VIOLATION

Consumers Power Company Docket Nos. 50-329;(Midland) 50-330

EA-80-56

Based on the results of an NRC investigation during the period March 6 -July 31, 1980, it appears that certain of your activities were in non-compliance with NRC requirements, as noted Delow.

1. 10 CFR 50, Appendix B, Criterion IV (Procurement Document Control),states, in part, that " Measures shall be established to assure thatapplicable regulatory requirements, design bases, and other requirementswhich are necessary to assure adequate quality are suitably included orreferenced in the documents for procurement of material . . ."

Consumers Power Company Quality Assurance Program Policy No. 4(Procurement Document Control), Revisi:n 8, states that" AssignedQuality Assurance personnel review prc:urement specifications toverify the adequacy of quality require ents stated therein."

The Bechtel Associates " Technical Specification for Heating, Venti-lating and Air Conditioning Seismic Class I . . ." (SpecificationGuide Number 7220-151A(Q), Revision 6, Section 2.0, Codes andStandards), requires that duct fabrica. ion and installation methods,materials, and workmanship shall corfc m to the ASTM standards.American Society for Testing and Material (ASTM) material specifi-cation designation A527-71, paragrapn 3.2, states that orders formaterial to this specification shall include certain specifiedinformation, as necessary, that adecua ely describe the desiredproduct.

The Zack Company Quality Assurance ManJal, Amendment 1 to Section 5,Revision 0, paragraph 3, states that "All Purchase Orders initiatedby the Zack Company are subject to revies by the Zack Company QualityAssurance Department."

Contrary to the above, measures did nc. assure that adequate qualitywas suitably specified in material prc:urement documents, as evidencedby the following:

- Zack Company Purchase Order No. C-743, dated October 12, 1979, forsteel coils was not stamped to show completion of review by ZackCompany Quality Assurance to insure that it contained all purchaserequirements, and

- The Zack Company Purchase Orders No. C-743 and No. C-642, datedJanuary 12, 1978, did not include the information required byASTM A527-71 to adequately descrice the desired product.

:'.:

_

;. .

Appendix A (Continued) -2-

This is an infraction (Civil Penalty - $3,500).

2. 10 CFR 50, Appendix B, Criterion V (Instructions, Procedures, andDrawings), states that " Activities affecting the quality shall beprescribed by documented instructions, procedures, or drawings . . . andshall be accomplished in accordance with these instructions, procedures,or drawings . . ."

A. Consumers Power Company Quality Assurance Program Policy No. 5,(Instructions, Procedures and Drawings) Revision 8, states that" Instructions for controlling and performing activities affectingquality of equipment or operations during the design, constructionand operation phases of nuclear power plants, such as procurement,manufacturing, construction, installation, inspecting, testing,operations and maintenance are documented in instructions, proce-dures, specifications, checklists and other forms of documents . . ."

(1) The Zack Company Quality Assurance Manual, Section 6, Revision 0,states that ". . . Fabrication instructions are provided to thefabrication shop (plant or site) by design / drafting in theform of travelers that specifically set forth all necessarydata . . ."

(2) The Zack Company Procedure No. MB-QCP-7, Revision 2, Paragraph6.6, states that "in addition to the welder placing his identi-fication number on his work, this information shall be docu-mented daily (or as required) by the QC Inspector who shallrecord the welders identification number and the type of weldingperformed for each weld on a permanent set of drawings whichshall be filed in the Zack Company field office."

Contrary to the above, activities affecting quality were notaccomplished in accordance with documented instructions and proce-dures for fabrication, as evidenced by the following:- Review by the NRC inspector during the week of March 17, 1980

of the replacement duct for Duct No. V03-SH2-2-F9437 anc theaccompanying documents indicated that the duct was partially

; completed without a traveler.

; Review by the NRC inspector during the week of March 17, 1980-

indicated that the installed hanger No. V19-SH1-7 does notresemble the sketch on the traveler (Traveler No. V19-7(1/C893)F938). The original hanger (configuration as shown on thetr veler) was fabricated in Zack's Chicago shop. The newhanger (configuration as installed) was installed without atraveler.

- Review by the NRC inspector during the week of March 25, 1980indicated that the sketch on traveler No. V26-SH1B 11F10807showed that the angle iron was welded to a 4" x 5.4" x 45*

. .

Appendix A (Continued) -3-

channel. The angle iron, as installed, was welded to a channelapproximately 7" deep and 2-1/4" wide.

- Review by the NRC inspector during the week of March 17,1980 indicated that the height of hanger No. V1-3(7/C886)F916, shown on the traveler, was 43-3/4" and the installeddimension was approximately 37"; furthermore, the anglebrace was a 2" x 2" angle instead of a 3-1/2" x 3-1/2 x1/4"angle as required by the traveler.

- Review of Zack Drawing No. V26-SH1 by the NRC inspector onMarch 25, 1980 indicated that the welder's identificationnumber and the type of welding performed for each weldwere not recorded.

This is an infraction (Civil Penalty - 54,000).- During the period March 17-28, 1980, it was established that

the welders' identification was not recorded on the followingtravelers:

(a) V26-SH28-46.1-P1515 (f) V26-SH18-12-F10802(b) V10-42B-F10171 (g) V34-SH1-3-F1306(c) V10-42B.1-F10172 (h) V34-SH1-4-F1306(d) V26-SH28-47.1-P1516 _(i) V34-SH1-1-F9395(e) V26-SH1B-11-F10807 (j) V34-SH1-5-F9396

This is a deficiency (Civil Penalty - 50).

E. Consumers Power Company, Quality Assurance Program Policy Number 5(Instructions, Procedures and Drawings), Revision 8, states, inpart, that Quality Control Procedures also provide additional.detailed instructions for carrying out the quality functions.,

The Bechtel Technical Specification for Heating, Ventilatingand Air Conditioning (7220-M-151A-Q), Revision 6, Section 5.18,requires that marking material be Carboline Co. X-1000-90,Ameron Co. 2032 or Nissen metal marker by Nissen Co.

Contrary to the above, and as of the date of this investigation,an unapproved marking material, Eberhard Faber Marquette, wasused to mark sheet steel stock and fabricated items installedin Seismic Class I ductwork without a change approved by thecontractor.

This is a deficiency (Civil Penalty - $0).

3. 10 CFR 50, Appendix B, Criterion VII (Control of Purchased Material,'

Equipment, and Services), states that " Documentary evidence thatmaterial and equipment conform to the procurement requirements

__

Appendix A (Continued) -4-. .

shall be available at the nuclear power plant . . . prior to instal-lation or use of such material and equipment."

Consumers Power Company Quality Assurance Program Policy No. 7,Revision 9, (Control of Purchased Material, Equipment, and Services),states that " receipt inspections are made to verify that theitems . . . conform to procurement requirements . . . Documentedevidence that the items meet . . . certification of conformance mustbe available at the plant site prior to installation or use of theitems."

The Zack Company Quality Control Procedure MB-QCP-6 Rev. 3, Sec. 5.3,states that "the assigned QC Inspector, in performing a receiptinspection, verifies that material certification is received andtraceable to each container of weld filler metal by heat / lot numberor control number."

Section 5.4 states that " items rejected due to documentation problemsare placed on HOLD until each problem is resolved."

Section 5.9 states that "each shelf within the weld rod issue room . . .including the shelves inside the rod holding ovens, are marked as tothe type, heat / lot, and/or control number of weld filler metal con-tained thereon."-

Contrary to the above, documentary evidence that material and equipmentconform to procurement requirements prior to installation or use ofmaterial at the plant did not exist. This was evidenced by the factthat on March 12, 1980, E-7018-1/8" weld rod, identified by the number37G, was stored in the weld issue room warming oven, but materialcertification did not exist for rod identified by the 37G number. A

portion of the rod stored in the warming oven with unknown and/orquestionable identification had been issued for use in the field.

| This is an infraction (Civil Penalty - S3,000).

4. 10 CFR 50, Appendix B, Criterion VIII (Identification and Control ofMaterials, Parts, and Components), states that " Measures shall beestablished for the identification and control of materials . . . Thesemeasures shall assure that identification of an item is maintained byheat number, part number, serial number, or other appropriate means,either on the item or on records traceable to the item, as requiredthroughout fabrication, erection, installation, and use of the item . . ."

Consumers Power Company Quality Assurance Program Policy No. 8 (Iden-tification and Control of Materials, Parts and Components) Revision 8,states that " Consumers Power and their onsite Suppliers exercise a systemof controls to assure that only correct and accepted materials, parts,and components (items) are used and installed. These items are identifiedby marking the items, or by records traceable to the items."

The Zack Company Q.; Manual, Section 9, Revision 0, states that "as the'

traveler progresses, all detail parts required are given a visual checkto insure that each sub-component of the item has been properly identified

Appendix A (Continued) -5-. .

with the traveler number placed on all sub-component parts, the travelershall be identified with the control r. umbers to insure the traceabilityof the material, and to prevent interringling of incorrect material. Allidentification (control number and/or traveler number) shall remain on thetravelers and component parts throughcut the fabrication process to insurethat the components are incorporated in the completed item."

The Zack Company Quality Assurance Manual, Section 9, Revision 0,states that " Quality Control inspector shall insure that theproper color coding has been placed on the material, and that thematerial has been properly identified with its control number . . ."

Contrary to the above, measures did not assure the identificationof safety related HVAC components througnout fabrication, erectionand installation as evidenced by the following:- Duct No. V26-SH2B-46.1-P1515, prior to March 21, 1980, (a) did

not have either the traveler number or the control numberidentified on all of the sub-components; (b) was fabricatedwith angle irons marked with contro:s No. 929 and No. 727-2,but only angle iron control No. 929 was recorded on thetraveler; and (c) the coil contro: umber was recorded on thetraveler as 383, but the control nu-ber was not on the item.

- Duct No. V26-SH2B-47.1-1516, prior t: March 21, 1980, did nothave either the traveler number c -he control number identi-fied on all of the sub-components.

- Hangers No. V26-SH1B-11F10807 anc N:. V26-SH1B-12-F10802, as of.1 arch 28, 1980, (a) did not have .hs angle iron control number*

recorded on the traveler; (b) dic nct have either the travelernumber or the control number identi'ied on all the sub-components; and (c) had angle irc rarked V26-SH18-11-F10807installed on hanger number V26-SE'_E-12-F10802 and vice versa.

Hanger No. V19-0(3/C898) F940, as o' March 28, 1980, did not-

have either the traveler number er the control number identi-fied on all of the sub-components.

- Hanger No. V19-11(6/C898) F942, as cf March 28, 1980, (a) didnot have either the traveler number or the control numberidentified on all of the sub-comp:nents; and (b) was fabricatedwith two pieces of angle iron mar <ec with control number 887,when the control numbers recorded or, the traveler did not

include the number 887.

Hanger No. V19-13 (7/C898) F944, as of March 31, 1980,-

(a) did not have either the traveler number or the controlnumber identified on all the sub-co poner.ts; and (b) was fabri-cated with one piece of angle iron narked with control number887, when the control numbers recorced on the traveler didnot include number 887.

D**]D *]D T

_ o o Ju o Ju 1 .Y .m

Appendix A (Continued) -6-

- Hanger No. V19-SH1-7, as of March 31, 1980, (a) did not have eitherthe traveler number or the control number identified on all of thesub-components; and (b) was fabricated with an an 'e iron markedwith hanger number V1-3 (9/C886) F916.

- During the week of March 17, 1980, an NRC inspector found numeroussections of angle iron stored in the Poseyville laydown area werewithout identification.

Hanger No. V1-3 (7/C886) F916, as of March 31, 1980, did not have-

either the traveler number or the control number identified on allsub-components.

- During the period March 17-20, 1930, an NRC inspector found a largenumber of turning vanes in ten foot lengths, without either colorcoding or control number, stored in a rack in the field fabricationshop, and used in fabricating the following items:

(1) Duct No. V03-SH2-2-F9437 (replacement piece)

(2) Duct No. V10-42B-F10171

(3) Duct No. V10-428-1-F10172

(4) Duct No. V3-SH2-2D-F12685

This is an infraction (Civil Penalty - S4,000).

5. 10 CFR 50, Appendix B, Criterien IX (Control of Special Process), states," Measures shall be established to assure that special processes, includingwelding, are controlled and accomplished by qualified personnel usingqualified procedures in accordance with applicable codes, standards,specifications, criteria, and other special requirements."

Consumers Power Company Quality Assurance Program Policy Number 9 (Controlof Special Process), Revision 8, states that "For such special processesas welding, where the required level of quality cannot be measured byinspection only of the item, Consumers Power, its Suppliers, and theirlower tier Suppliers, accomplish these processes under controlled condi-tions in accordance with applicable codes, standards, and specificationsusing qualified procedures, equipment and personnel."

A. The Zack Company QA Manual, Section 10, Revision 0, states that "Itshall be the responsibility of the Quality Control Inspector toinsure that all welding shall be performed by only those welders whohave been qualified for this work, and that each qualified welderuses the established welding procedures for the work."

Contrary to the above, prior to March 31, 1980, measures did notassure that welding was accomplished using qualified procedures, asevidenced by the fact that:

.' Appendix A (Continued) -7-.

A shielded metal arc welding process was shown on the-

travelers, but a gas metal arc welding process was usedin the fabrication of the following items:

(a) Duct No. V26-SH28-46.1-P1515

(b) Duct No. V10-42B-F10171

(c) Duct No. V10-428.1-F10172

(d) Duct No. V26-SH2B-47.1-P1516

(e) Duct No. V3-SH2-2D-F12685

- Travelers for ducts No. V34-SH1-F9395, No. V34-SH1-5-F9396,No. V34-SH1-4-F1306 nd No. V34-SH1-3-1306 stated the weldingprocedure to be user was Number QCP-1-P5CS. This procedurerequires the use of carbon dioxide as the shielded gas. Dur-ing the week of Mar..h 25, 1980 individuals advised the inspectorthat carbon dioxide was not available at the Midland site, andtherefore this procedure was not followed in performing thesewelds.

This is an infraction (Civil Penal.y - $3,500).

B. The Zack Company Quality Control Procedure MB-QCP-6, Rev. 3,requires in Section 5.12 that " issuance and return of weld filler

metal is controlled through the use of a Filler Metal WithdrawalAuthorization form which is maintained with issued material fromthe time it is issued and until it is returned." Section 5.13requires that " low-hydrogen electrode is issued in portable rodwarmer caddies. Each caddy is energized (i.e. plugged in) at alltimes, except when in transit to and from the location at whichwelding is performed." Section 5.14 requires that " holding ovensand portable rod warmer caddies are to be maintained at the temp-eratures specified in AWS D1.1-79, Section 4, paragraph 4.5 . . .their temperature is checked by a QC Inspector once every two (2)months and documented on the Rod Oven Temperature Check form . . ."

Contrary to the above, procedures to control weld filler metal atthe Midland construction site were not followed as evidenced bythe fact that:

- On March 12, 1980, a rod warmer caddy in the weldingbooth area of The Zack Co. fabrication shop was notenergized. The caddy contained at least twelve E-7018weld rods (low-hydrogen electrode). No Filler Metal With-drawal Authorization form was maintained with the material.

- On March 13, 1980, a review of the temperature records forthe portable rod warmer caddies disclosed temperature recordsdid not exist for two caddies. The temperature records for twoother caddies indicated the te.aperature for those two caddieswas last checked prior to November, 1979.

- - _ _ - _ _ _ _ _ _ _ _ - _ _ - . _ _ - _ _ _ -

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Appendix A (Continued) -8-

This is an infraction (Civil Penalty - 53,500).

C. Consumers Power Company Quality Assurance Program Policy No. 9,(Control of Special Processes), Revision 9, dated March 18, 1980,Section 3.1, Process Qualification and Control, states that "whenperformed by a supplier, the requirement to perform special processesin accordance with applicable specifications, codes, and standards,is made a provision of the Procurement Documents placed withConsumers Power Principal Suppliers. These Principal Suppliers are'

also required to establish provisions for the control of specialprocesses in their lower-tier Procurement Documents."

Bechtel Corporation Specification No. 7220-M-1515A(Q), Revision 7,paragraph 14.9.3, states that "The Succontractor shall submit writtenwelding procedures for review and acceptance by the Buyer prior touse. If the procedure is not prequalified by AWS D1.1, the procedurequalification test records shall be submitted along with procedure."

The Zack Company QA Manual, Section 10, Revision 0, states that" Welding shall be performed by using Zack Company qualified andapproved welding procedures." Tne Zack Company Welding ProcedureNumber MB-QCP-1 (P-SCS), Revision 2, requires that (1) base metalconform to the specifications for SA414, Grade A, and that(2) welding be of material in tne tnickness range of 1/16 (0.0625)inch to 3/16 (0.1875) inch. The crocedure was actually qualified toweld in the thickness range of 0.0672. inch to 0.269 inch.

Contrary to the above, welding was not performed in accordance withqualified procedures as evicenced by the fact that:

Duct No. V2-SH1-1-2A-F8403, which was fabricated using Welding-

Procedure Number MB-QCP-1 (P-5CS), is ASTM A527 material with athickness of 18 gauge (0.0475").

- Welding Procedure Number MS-QCP-1 (P-5CS) was used to fabricateducts No. V34-SH1-1-F9395, No. V34-5H1-5-F9396, No. V34-SH1-2-P1306, No. V34-SH1-3-P1-306, and No. V34-SH1-4-P1306. Thesheet metal of the ducts is ASTM A527 and the angle iron isASTM A36.

Certain angle irons used to fabricate Duct No. V26-SH28-46.1-

P1515 are identified with control number 727-2. Materialcertification for angle iron control number 727-2 indicatedmaterial is ASTM A575. Based on review of welding procedures,

-an NRC inspector determined that the Zack Company does not havea qualified welding procedure to weld on ASTM _A575 material inaccordance with AWS D1.1, 1977 code.

! Under a Certificate of Cor.formance, dated November 5,1979, the-

Air Monitor Corporation welded air m:nitors without prior buyerreview and acceptance of welding procedures. The air monitorswere subsequently received onsite.

!

.- -

i

|. Appendix A (Continued) -9-.

This is an infraction (Civil Penalty - $4,000).

D. Section 6.9 of the Zack Company Quality Control Procedure MB-QCP-3,Revision 2, requires that when safety related welding hasbeen completed, the welder who performed the work shall markeach weld he has made with his welding symbol number.

Section 6.5 of the Zack Company Quality Control Procedure MB-QCP-7,Revision 2, requires that upon completion of a welding activity,each welder shall place his weld identification number on his work.

Contrary to the above, during the period from December 10, 1979to March 20, 1980, all welding activity was not identified bya welder's identification number. This was evidenced by the factthat not every weld performed on duct hangers, designated V26SH1,Nos. 33, 34, 36, 37, 38, and 21a, was marked with a welderidentification number.

This is an infraction (Civil Penalty - 53,000).

E. Paragraph 4.1.7 of the Zack Company Quality Control ProcedureMB-QCP-3, Revision 2, requires that when a welder has been testedand qualified to weld _on this project, he will be assigned a uniquewelder I.D. -stamp and this stamp will not be reassigned to anyother individual.

Contrary to the above, during the period February 28 - March 20,1980, two qualified welders were assigned the same weld stamp,No. CU7.

This is an infraction (Civil Penalty - 53,000).

6. 10 CFR 50, Appendix B, Criterion X (Inspection) states that"A program for inspection of activities affecting quality shall beestablished and executed by or for the crganization performing theactivity to verify conformance with the documented instructions, pro-cedures, and drawings for accomplishing the activity . . ."

Consumers Power Company Quality Assurance Program Policy Number 10(Inspection) Revision 8, states that " Inspection and surveillanceare performed to assure that activities affecting quality complywith documented instructions, design documents and applicablecodes and standards."

A. The Zack Ccmpany QA Manual, Section 6, Revision 0, states that. . Procedures have been established for . . . inspection . . .""

.

Contrary to the above, review of instructions and proc 2dures by anNRC inspector during the week of March 17, 1980 indicated thatinstructions and procedures for inspection were not prescribedfor activities affecting quality as evidenced by the fact thatno procedure existed for final inspection of field fabricateditems at the Midland site .

|

.- .'Appendix A (Continued) - 10 -

This is an infraction (Civil Penalty - $3,000).

B. Bechtel Specification No. 72220-M-151A(Q), Revision 7, Paragraph14.8.3.b states that " undercut shall not exceed 1/32 inch . . ."The Zack Company Procedure No. QCP-20, Revision 2, requires thatexternal surfaces of completed welds be examined for undercutting.

Contrary to the above, the program for inspection was not adequateto assure compliance with applicable specifications as evidenced bythe fact that certain flange-to-duct welds on Duct No. V26SH2b-47.1-P1516 have undercuts exceeding 1/32". This item was inspected andaccepted by Zack QC on February 15, 1980.

This is a deficiency (Civil Penalty - $0).

7. 10 CFR 50, Appendix B, Criterion XV (Nonconforming Materials, Parts, orComponents) states that " Measures shall be established to controlmaterials, parts, or components which dc not conform to requirements inorder to prevent their inadvertent use or installation . . ."

Censumers Power Company Quality Assurance Program Policy Number 15(Nonconforming Items), Revision 8, states that, ". . . Nonconformingitems (structures, systems, components, parts, materials) are identifiedby marking, tagging, segregating, or by documentation . . ."

A. The Zack Company Quality Assurance Manual, Section 16, Revision 0,states that "...when it is determined that a nonconformity exists,it shall be tagged with a nonconforiance tag by the Quality Control

"Inspector who then shall initiate a nonconformance report . ..

Contrary to the above, measures which would prevent the inadvertentuse or installation of nonconforming materials had not been estab-lished as evidenced by the fact tha.:

- Duct No. V03-5112-2-F9437 was fabricated to Seismic Class 2requirements instead of the prescribed Seismic Class 1 require-ments. As of March 21, 1980 a nonconformance report was notinitiated for the duct fabricated to the requirements of SeismicClass 2.

On March 12, 1980, nonconforming weld filler material (no-

material certification) was observed being used in welding apiece of duct identified on traveler No. F-9396. .The materialwas not identified as being nonconforming.

This is an infraction (Civil Penalty - $3,500).

B. Paragraph 6.3 of the Zack Company Quality Control Procedure MB-QCP-8,Revision 2, states

. .' ,

Appendix A (Continued) - 11 -

"In conjunction with initiating the NCR form, the QC inspectorinitiates a yellow nonconformance tag (s). The hard copy isattached to the nonconforming item (s) and the soft copy isattached to the NCR form. Each tag identifies the item byname, piece mark and item number. The yellow nonconformancetag, by it's application, flags the item as nonconforming andprevents further work on or with the item."

Contrary to the above, during March and April, 1980, non-conformancetags had been applied to Ruskin NIBD23 fire dampers without explicitlyidentifying the item by name, piece mark, and item number. On April18, 1980, and April 23, 1980, white nonconformance tags were observedbeing used on Ruskin NIBD23 fire dampers stored at the Zack fabrica-tion shop and on hangers installed in the Service Water Buildingrespectively.

This is an infraction (Civil Penalty - $3,000).

8. 10 CFR 50, Appendix B, Criterion XVI (Corrective Action), states " Measuresshall be established to assure that conditions adverse to quality, suchas . nonconformances are promptly identified and corrected."

Section 3.0 of Consumers Power Company Quality Assurance Program PolicyNumber 16, (Corrective Action), Revision 8, states that " Correctiveaction is initiated to correct conditions adverse to quality of items andactivities." Section 3.4 states that " suppliers . . . who perform servicesfor the nuclear plant, implement and follow a system for correctiveaction according to the Supplier's approved procedures."

A. Contrary to the above, during the period May 23 - October 2, 1979,none of the seven non-conformance reports generated by the ConsumersPower Company had been promptly corrected as evidenced by the factthat as of March 19, 1980 they had not been closed out.

This is an infraction (Civil Penalty - $4,000).

B. The Zack Company Quality Assurance Manual, Section 16, Revision 0,dated February 28, 1979, states "The site or plant Quality ControlInspector shall be responsible for inspecting the material or equip-ment as it is received . . . Items placed on " HOLD" will be fordeficiencies found in receipt inspection, e.g.: 1. No material-

certification . "..

Contrary to the above, measures were not adequate to assure thatconditions adverse to quality were promptly identified, as evidencedby the fact that:

- Review of the Zack Company (at the Midland site) noncompliancelistings disclosed that 250 pounds (5 boxes) of 3/32" diameter,Hobart E-6011 weld rod, serial number 90155A, that were receivedat the Midland site on May 17 and June 6, 1979, lacked a material

.

Y ^

.

Apper. dix A (Continued) - 12 -

certification and were not placed on HOLD until March 11, 1980.The remainder of this weld rod, 450 pounds in 9 boxes, was ..otplaced on HOLD and its use is unknown.

250 pounds (5 boxes) of 3/32" diameter, low hydrogen 7018,-

welding rod, received at the Midland Job Site on December 15,1979, were not marked as nonconforming for being " improperlyboxed" until March 11, 1980.

This is an infraction (Civil Penalty - $3,500).

9. 10 CFR 50, Appendix B, Criterion XVII, states that, " Sufficient recordsshall be maintained to furnish evidence of activities affecting quality.The records shall include at least the following: Operating logs and theresults of reviews, inspections, tests, audits, monitoring of workperformance, and material analyses . . . Records shall be identifiableand retrievable."

Consumers Power Company Quality Assurance Program Policy Number 17,(Quality Assurance Records), Revision 9, Section 1, states that " ConsumersPower and its Suppliers compile recorcs as specified in applicableprocedures . . ."

The Zack Company Quality Control Proce:ere MB-QCP-21, Rev. 3, siteprocedure for inspecting installation of equipment, requires that theconstruction site quality control inspector is responsible for in processinspection and documentation of all items being installed and for finalinspection of equipment installed. It further states "that these functionswill be documented on the following form: Quality Control Survey ReportForm No. 4."

Contrary to the above, sufficient reco-ds to furnish evidence of activitiesaffecting quality were not maintained as evidenced by the fact that

| equipment installation inspection records did not exist for the safety| related fire dampers installed during the period November, 1979 - January,

1980.|

This is an infraction (Civil Penalty - 53,000).i! 10. 10 CFR 50, Appendix A, Criteria XVIII, states that "A comprehensive

system of planned and periodic audits shall be carried out to verifycompliance with all aspects of the quality assurance program and todetermine the effectiveness of the program. The audits shall beperformed . . . by appropriately trained personnel not having directresponsibilities in the area being audited."

Consumers Power Company Quality Assurance Program Policy Number 18,i

| (Audits), Revision 9 , Section 1, states that " . . ._ Audits to verifycompliance to the requirements of the nuclear plant Quality Assurance

| Program are conducted by qualified personnel who have no responsibilitiesin the areas audited . . ."

D"#}D # }I9 F ] f-

A mu o lu 0 0 %

.

'

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Appendix A (Continued) - 13 -

The Zack Company Quality Assurance Manual, Section 19, Rev. O, statesthat "All audit team members shall only audit areas for which they haveno direct responsibility."

Contrary to the above, audits to verify aspects of the quality assuranceprograms were carried out by personnel with direct responsibilities inthe area being audited. Mr. Ed Thompson, Zack Company QA Manager andMr. H. Geyer, Zack Company Project QA Manager, performed an audit onMarch 6-7, 1980 of the Zack Company Quality Assurance program at theMidland Site. Mr. E. Thompson had been the Zack Company Project Managerat the Midland site in December 1979, a period included in the audit.

This is an infraction (Civil Penalty - 53,000).

Although the total civil penalties, pursuant to Section 234 of the AtomicEnergy Act of 1954, amount to Fifty-four Thousand Five Hundred Dollars (554,500),at the time of these items of noncompliance, the total civil penalties for anythirty (30) day period could not' exceed Twenty-five Thousand (525,000).Consequently, cumulative civil penalties in the amount of Thirty-eight ThousandDollars ($38,000) are proposed.

This Notice of Violation is sent to the Consumers Power Company pursuant tothe provisions of Section 2.201 of the NRC's " Rules of Practice," Part 2,Title 10, Code of Federal Regulations. In determining the amount of civilpenalty for each item of noncompliance, a penalty of $3,000 was proposed forinfractions involving one example. An additional 5500 was proposed for thoseinfractions involving two examples. For infractions involving three or moreexamples, the maximum civil penalty for infractions, 54,000. was proposed.In one instance, the maximum civil penalty for an infraction was proposedbecause of the more serious nature of the item of nomcompliance. The ConsumersPower Cocpany is hereby required to submit to this office, within twenty-five(25) days of the date of this notice, a writter statement or explanation inreply, including for each item of noncompliance: (1) admission or denial of

| the alleged item of noncompliance; (2) the reasons for the item of noncom-I pliance if admitted; (3) the corrective steps which have been taken and the

results achieved; (4) corrective steps which will be taken to avoid furtheri noncompliance; and (5) the date_when full compliance will ne achieved.i

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