US embassy cable - 04MADRID2179

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