NRC ORDER – NOV and (ORDER)

On December 19, 2006, a Notice of Violation (NOV) and a Confirmatory Order (Effective Immediately) were issued as part of a settlement agreement that was prepared as a result of an Alternative Dispute Resolution (ADR) session that was held to resolve the results of an investigation of deliberate wrongdoing by a former contract mechanical engineer. The NOV includes two violations (categorized as one Severity Level III problem) which are cited against 10 CFR Part 50, Appendix B, Criterion III, "Design Control," and the licensee's procedures for engineering changes and design interface reviews and evaluations. Based on the ADR session, both parties agreed, among other things, that: (1) the former contract engineer deliberately failed to adhere to procedural requirements; (2) the licensee took multiple corrective actions to prevent recurrence; (3) there was a need for additional corrective actions at the licensee's facilities as well as an opportunity for other licensees in the industry to learn from this incident; (4) in light of the corrective actions the licensee has taken and has committed to take, the NRC would issue a Severity Level III violation with no civil penalty; and (5) the NRC would issue a Confirmatory Order confirming the agreement.