COMMISSIONER JEFFREY MERRIFIELD'S OFFICIAL VISIT

C O N F I D E N T I A L SECTION 01 OF 02 MADRID 002179

SIPDIS

STATE PLEASE PASS TO NRC

E.O. 12958: DECL: 06/08/2014
TAGS: OTRA ENRG TRGY SP TECH
SUBJECT: COMMISSIONER JEFFREY MERRIFIELD'S OFFICIAL VISIT
TO SPAIN ON MARCH 28-APRIL 2, 2004


1. (C) SUMMARY: COMMISSIONER JEFFREY MERRIFIELD OF THE U.S.
NUCLEAR REGULATORY COMMISSION (NRC) VISITED SPAIN MARCH 28 TO
APRIL 2, 2004 TO CONDUCT THE SECOND ANNUAL HIGH LEVEL
BILATERAL MEETING WITH THE SPANISH NUCLEAR SECURITY COUNCIL
(CSN) AND TO PARTICIPATE IN THE NUCLEAR ENERGY INDUSTRY'S
WORLD NUCLEAR FUEL CYCLE CONFERENCE. HE ALSO VISITED THE
TRILLO NUCLEAR POWER STATION, TECNATOM, ENSA (EQUIPOS
NUCLEARES),AND THE SANTA MARIA DE GARONA NUCLEAR POWER
PLANT. COMMISSIONER MERRIFIELD,S MEETINGS INCLUDED THOSE
WITH U.S. AMBASSADOR GEORGE ARGYROS, CSN PRESIDENT MARIA
TERESA ESTEVAN, CSN VICE-PRESIDENT AZUARA, CSN COMMISSIONERS
SENDIN, BARCELO, AND MARTINEZ-TEN, AND SENIOR EXECUTIVES OF
SPANISH NUCLEAR UTILITIES. THE CSN AND NRC EXCHANGED
INFORMATION ON SUMP CONCERNS FOR PRESSURIZED WATER REACTORS,
FUEL PERFORMANCE, REACTOR HEAD INSPECTION/REPLACEMENT, GRID
RELIABILITY, RISK INFORMED ENGINEERING INSPECTIONS,
MANAGEMENT OF HIGH AND LOW LEVEL WASTE, RECENT POWER PLANT
OPERATING EXPERIENCE, PHYSICAL PROTECTION, IMPORT OF SCRAP
METAL, DECOMMISSIONING, INTERNATIONAL ACTIVITIES, AND PUBLIC
COMMUNICATION. MEETINGS WITH THE OTHER CSN COMMISSIONERS
REVEALED SIGNIFICANT RESENTMENT AND IN-FIGHTING WITHIN THE
CSN. END SUMMARY.


2. (U) COMMISSIONER JEFFREY MERRIFIELD,S VISIT WAS
WELL-RECEIVED IN SPAIN. HE WAS ACCOMPANIED BY HIS TECHNICAL
ASSISTANT JOHN THOMA, AND CINDY ROSALES BUSH, INTERNATIONAL
RELATIONS OFFICER. FOR THE FIRST DAY OF THE TRIP, THE
COMMISSIONER WAS ALSO ACCOMPANIED BY NRC SENIOR MANAGEMENT
BILL BORCHARDT AND JOHN GREEVES, WHO SUPPORTED THE BILATERAL
MEETINGS. HIS VISIT BEGAN WITH A COURTESY VISIT WITH
AMBASSADOR ARGYROS IN MADRID, WHERE HE BRIEFED THE AMBASSADOR
ON THE NUCLEAR ENERGY OUTLOOK IN THE U.S. AND NRC'S
COOPERATIVE ACTIVITIES WITH THE CSN. ECON OFFICER
ACCOMPANIED THE DELEGATION TO THE HIGH LEVEL BILATERAL
MEETING WITH THE CSN.

PRESIDENT MARIA TERESA ESTEVAN & CSN COMMISSIONERS


3. (C) CSN PRESIDENT ESTEVAN WELCOMED COMMISSIONER
MERRIFIELD AT CSN HEADQUARTERS IN MADRID. COMMISSIONER
MERRIFIELD INDICATED TO PRESIDENT ESTEVAN THE IMPORTANCE OF
NRC-CSN COOPERATION AND THE NRC,S DESIRE TO SEE IT
AUGMENTED. HE INVITED PRESIDENT ESTEVAN TO CONSIDER SIGNING
AN AGREEMENT WITH THE NRC FOR THE EXCHANGE OF CLASSIFIED
INFORMATION TO ENABLE BOTH AGENCIES TO COOPERATE ON MATTERS
OF PHYSICAL SECURITY. PRESIDENT ESTEVAN INDICATED THAT THE
CSN WAS CONSIDERING THE OPPORTUNITY. SHE THEN ESCORTED
COMMISSIONER MERRIFIELD TO A MEETING WITH CSN VICE-PRESIDENT
AZUARA AND COMMISSIONERS SENDIN, BARCELO, AND MARTINEZ-TEN.

CSN-NRC HIGH LEVEL BILATERAL


4. (C) COMMISSIONER MERRIFIELD CO-CHAIRED THE HIGH LEVEL
BILATERAL MEETING WITH PRESIDENT ESTEVAN. PRESENTATIONS WERE
MADE BY CSN AND NRC SENIOR STAFF. TECHNICAL ISSUES DISCUSSED
AT THE MEETING INCLUDED SUMP CONCERNS FOR PRESSURIZED WATER
REACTORS, FUEL PERFORMANCE, REACTOR HEAD
INSPECTION/REPLACEMENT, GRID RELIABILITY, RISK INFORMED
ENGINEERING INSPECTIONS, MANAGEMENT OF HIGH AND LOW LEVEL
WASTE, RECENT POWER PLANT OPERATING EXPERIENCE, PHYSICAL
PROTECTION, IMPORT OF SCRAP METAL, DECOMMISSIONING,
INTERNATIONAL ACTIVITIES, AND PUBLIC COMMUNICATION. NRC
PRESENTATIONS WERE MADE BY RICHARD BORCHARDT, NRC DEPUTY
DIRECTOR FOR NUCLEAR REACTOR REGULATION, AND JOHN GREEVES,
DIRECTOR FOR HIGH LEVEL WASTE MANAGEMENT, NRC. COMMISSIONER
BARCELO WAS THE ONLY CSN COMMISSIONER PRESENT AT THE
BILATERAL. VICE PRESIDENT AZUARA AND COMMISSIONERS SENDIN
AND MARTINEZ-TEN DID NOT ATTEND IN PROTEST OF PRESIDENT
ESTEVAN,S DECISION TO JOIN THE COURTESY MEETING COMMISSIONER
MERRIFIELD HAD WITH THE OTHER COMMISSIONERS.


5. (U) COMMISSIONER MERRIFIELD SUMMARIZED NRC,S RESPONSE TO
THE BLACK-OUT OF AUGUST 14, 2003 AND SPOKE OF THE ROLE OF
NRC,S EMERGENCY RESPONSE OPERATION CENTER DURING THE EVENT.
PRESIDENT ESTEVAN INDICATED THAT SPAIN HAS TWO NUCLEAR POWER
PLANTS (ASCO 1 & 2) THAT WILL NEED VESSEL HEAD REPLACEMENTS
IN THE NEAR FUTURE AND THAT THE CSN LACKS EXPERIENCE IN
REGULATING AND INSPECTING VESSEL HEADS AND REPLACEMENT
PROCEDURES. COMMISSIONER MERRIFIELD PROMISED TO MAKE
AVAILABLE TO CSN THE PILOT INSPECTION PROCEDURE MANUAL ON
VESSEL HEAD REPLACEMENT. PRESIDENT ESTEVAN POINTED OUT THAT
THE CSN WAS IMPLEMENTING NRC INSPECTION PROCEDURES AT THE
CONFRENTES NUCLEAR POWER PLANT (NPP) AS A RESULT OF THE VISIT
OF NRC RESIDENT INSPECTOR ROGERIO REYES TO SPAIN IN JANUARY

2004.


6. (U) PRESIDENT ESTEVAN EXPRESSED TO COMMISSIONER
MERRIFIELD CONCERNS OVER THE AMOUNT OF RADIOACTIVE SOURCES IN
IMPORTED SCRAP METAL. SPAIN IMPORTS 10-12 MILLION TONS OF
SCRAP METAL YEARLY; THE MAJORITY FROM THE U.S. THE NUMBER OF
RADIOACTIVE SOURCES FOUND IN THE SCRAP METAL HAS INCREASED IN
THE PAST COUPLE OF YEARS. AS A RESULT, THE CSN DEVELOPED A
NATIONAL SCRAP METAL PROTOCOL AS A VOLUNTARY COMMITMENT WITH
STAKE HOLDERS. SIGNATORIES TO THE PROTOCOL INCLUDE THE
SPANISH MINISTRIES OF ECONOMY AND PUBLIC WORKS, CSN, WASTE
MANAGEMENT COMPANY ENRESA, THE SPANISH FEDERATION OF RECOVERY
INDUSTRIES, AND THE STEEL AND IRON ASSOCIATIONS.
COMMISSIONER MERRIFIELD,S VISIT TO CSN HEADQUARTERS ENDED
WITH A TOUR AND PRESENTATION OF THE CSN EMERGENCY RESPONSE
CENTER. ALTHOUGH THE CENTER IS CONSIDERED FUNCTIONAL, THE
CSN IS CURRENTLY IN THE PROCESS OF UPDATING ITS TECHNOLOGY.

TRILLO NUCLEAR POWER STATION


7. (U) COMMISSIONER MERRIFIELD MET WITH AQUILINO RODRIGUEZ
CASES, DIRECTOR OF THE TRILLO NPP IN GUADALAJARA, SPAIN ON
MARCH 30 AND TOURED THE PLANT. CSN COMMISSIONER JULIO
BARCELO ACCOMPANIED HIM ON THE VISIT. THE TRILLO NPP IS A
1066 MWE, GERMAN (SIEMENS) DESIGN PRESSURIZED WATER REACTOR
AND HAS BEEN IN OPERATION SINCE 1988. COMMISSIONER
MERRIFIELD TOURED THE SECONDARY SYSTEM AND DIESEL GENERATOR
ROOMS, CABLE SPREADING ROOM, MAIN AND REMOTE CONTROL ROOMS,
AND CONTAINMENT AREA AND NOTED DIFFERENCES IN DESIGN OF THE
SIEMENS PWR FROM THOSE IN THE U.S. (E.G., THE SIEMENS DESIGN
DID NOT INCLUDE A CONTAINMENT SPRAY SYSTEM).

NEI/WNA WORLD NUCLEAR FUEL CYCLE CONFERENCE


8. (U) ON MARCH 31, COMMISSIONER MERRIFIELD PARTICIPATED AS
KEYNOTE SPEAKER IN THE NEI/WNA WORLD NUCLEAR FUEL CYCLE
CONFERENCE. COMMISSIONER MERRIFIELD,S SPEECH, ENTITLED "DO
REGULATORS ADD VALUE?" SUMMARIZED CURRENT NRC ACTIVITIES IN
REGULATING POWER REACTORS AND SELECTED ELEMENTS OF THE
NUCLEAR FUEL CYCLE OF RELEVANCE TO CONFERENCE ATTENDEES.

TECNATOM AND ENUSA


9. (U) COMMISSIONER MERRIFIELD, ACCOMPANIED BY CSN
COMMISSIONER BARCELO, MET WITH ANTONIO ALONSO, DIRECTOR
GENERAL OF TECNATOM, DURING HIS TOUR OF THE FACILITY ON MARCH
31 IN MADRID. TECNATOM PROVIDES NUCLEAR SERVICES WORLD WIDE,
SUCH AS TRAINING OF BOTH NUCLEAR AND NON-NUCLEAR WORKERS, AND
DEVELOPS TECHNOLOGY FOR COMPONENT INSPECTION AND FACILITIES.
COMMISSIONER MERRIFIELD ALSO MET WITH JOSE GUTIEREZ ELSO OF
ENUSA ,WHO DESCRIBED ENUSA,S CORPORATE AND INDUSTRIAL
ACTIVITIES IN SPAIN.

ENSA


10. (U) COMMISSIONER MERRIFIELD MET APRIL 1 WITH EMILIO
CABRERA, CHAIRMAN AND CEO OF EQUIPOS NUCLEARES, S.A (ENSA),
AND TOURED THE COMPANY'S SITE IN SANTANDER. CSN COMMISSIONER
PALOMA SENDIN ACCOMPANIED THE COMMISSIONER. ENSA
MANUFACTURES LARGE COMPONENTS FOR THE NUCLEAR INDUSTRY SUCH
AS STEAM GENERATORS, REACTOR VESSEL HEADS, SPENT FUEL CASKS,
AND DRY SHIELD CANISTERS. IN THE PAST 18 YEARS, ENSA HAS
MANUFACTURED OVER 13 LARGE COMPONENTS FOR AMERICAN UTILITIES
AND IS CURRENTLY WORKING ON CONTRACTS FOR FENOC, TXU,
WESTINGHOUSE AND HOLTEC INTERNATIONAL. BOTH TXU AND
WESTINGHOUSE MAINTAIN QUALITY ASSURANCE INSPECTORS ONSITE AT
THE ENSA FACILITY.

NUCLENOR: SANTA MARIA DE GARONA NPP


11. (U) ON APRIL 1-2, COMMISSIONER MERRIFIELD MET WITH
JAVIER PINEDO, PRESIDENT OF NUCLENOR AT THE SANTA MARIA DE
GARONA NPP. CSN COMMISSIONER PALOMA SENDIN ACCOMPANIED
COMMISSIONER MERRIFIELD. COMMISSIONER MERRIFIELD ASKED ABOUT
THE OPERATING EXPERIENCE OF GARONA GIVEN ITS APPLICATION TO
THE CSN FOR LICENSE EXTENSION. GARONA IS 466MWE, GE BWR THAT
HAS BEEN IN OPERATION SINCE 1970. THE COMMISSIONER NOTED THAT
GARONA WAS IN VERY GOOD CONDITION AND CONGRATULATED MR.
PINEDO ON THE SUCCESS OF THE PLANT. HIS VISIT INCLUDED A
TOUR OF THE ONSITE MAINTENANCE TRAINING FACILITY, THE DIESEL
GENERATORS, CONTAINMENT AREA, CABLE SPREADING ROOM, AND
CONTROL ROOM.

INTERNAL CSN DISSENT


12. (C) DURING THEIR SITE VISITS WITH COMMISSIONER
MERRIFIELD, BOTH COMMISSIONER BARCELO AND COMMISSIONER SENDIN
RELATED, AT LENGTH, THEIR VIEWS ON THE SIGNIFICANT DISSENSION
WITHIN THE CSN. CSN COMMISSIONERS ARE ACCUSING PRESIDENT
ESTEVAN OF HAVING A DICTATORIAL APPROACH TO LEADERSHIP. A
MAJORITY OF COMMISSIONERS DID NOT ATTEND THE HIGH LEVEL
BILATERAL IN AN ACT OF PROTEST AGAINST PRESIDENT ESTEVAN.


13. (U) THIS CABLE HAS BEEN APPROVED BY COMMISSIONER
MERRIFIELD. NRC CONTACT: CINDY ROSALES-BUSH, (301)
415-1168, CER2@NRC.GOV.
ARGYROS