Parliamentary Portfolio Committee on Minerals and Energy

Providing for the protection of persons, property & the Environment against nuclear damage

Parliamentary Portfolio Committee on Minerals and Energy

REPORT ON THE ACTIVITIES OF THE NATIONAL NUCLEAR REGULATOR FOR

THE 2005/6 FINANCIAL YEAR

30 January 2007

M. MagugumelaCHIEF EXECUTIVE OFFICER


Scope of Presentation

Mandate and object of the National Nuclear Regulator (NNR)

Regulated and non regulated activities

Highlights from the 2005/06 NNR annual report

Regulatory control over Power Reactors Facilities

Regulatory control over Nuclear Technology and Natural Sources

Annual Financial Statements for 2005/6

Conclusion


1. MANDATE AND OBJECTS OF THE NNR


1. MANDATE OF NNR

The National Nuclear Regulator Act ( Act No 47 of 1999) (NNRA) established the National Nuclear Regulator (NNR). It repeals the Nuclear Energy Act (NEA) ( Act No 131 of 1993) which was applicable to the erstwhile Council for Nuclear Safety (CNS).

The NNRA came into force on 24 February 2000.

The previous NEA legislated activities of both the Atomic Energy Corporation of South Africa and the CNS. The promulgation of the NNRA, which deals exclusively with the regulation of the nuclear industry, provides for the separation of the promotional and Regulatory functions in the nuclear industry in South Africa.

The promotional aspects of nuclear activities in South Africa are legislated by the Nuclear Energy Act (Act No 46 of 1999)


The mandate of the NNR is to

“……Provide for the protection of persons, property, and environment against nuclear damage, through …”

MANDATE Cont …MANDATE Cont …


OBJECTS OF NNRSection 5 of the NNR Act

Exercise regulatory control over nuclear installations, vessels propelled by nuclear power or having radioactive material on board and actions through the granting of nuclear authorisations.

Provide assurance of compliance of conditions of nuclear authorisations through compliance inspections.

Fulfil national obligations in respect of international instruments.

Ensure that provisions for an emergency plan are in place.


STRUCTURE OF NNR

MinisterMinerals and Energy

NNR Board of Directors

NNR CEO

Power Reactors -

PRD

Nuclear Tech. Natural SourcesNTNS

Regulatory Strategy

DevelopmentRSD

Corporate Support services

CSS

Assessment Group

AG


OBJECTS OF THE NNRSECTION 5

NNR is controlled and governed by a board.The board— must ensure that the objects of the

Regulator referred to in section 5 are carried out; and

exercises general control over the performance of the Regulator’s functions.


2. REGULATED AND NON-REGULATED ACTIVITIES


AREAS REGULATED BY THE NNR

NUCLEAR POWER REACTORS

Eskom Koeberg Nuclear Power Station – KNPS

Twin 900MWe generating power station located on the West Coast +/- 40 Kms North of Cape Town

Operational Since 1984

Pebble Bed Modular Reactor – PBMR

Nuclear Installation Licence application received from Eskom in July 2000

Licensing process for the PBMR Demonstration Power Plant (DPP) is in progress. No nuclear licence issued yet.



NUCLEAR TECHNOLOGY AND NATURAL SOURCES

PBMR Fuel Manufacturing Plant – PBFP

Nuclear installation licence application was received from Necsa in July 2000

This was subsequently withdrawn by Necsa in 2005

A new application was received from PBMR Fuel Company in October 2005

NNR licensing process for the PBMR Fuel Manufacturing Plant is in progress

No nuclear license has been issued




South African Nuclear Energy Corporation – NECSA

Pelindaba Site Located west of TshwaneResearch reactors and other industrial applicationsVarious stores and waste management facilities

PelstoreThabana Pipe StoreEffluent treatment facility

Vaalputs National Waste RepositoryLocated in the Northern Cape




Mining and Minerals Processing

Currently over 118 authorisations issued

Users of small quantities of Radioactive materials

Currently 28 authorisations issued

Vessels

Either propelled by nuclear power orCarrying radioactive material on board


AREAS NOT REGULATED BY THE NNR

(exclusions Section 2(2) of the Act) Exposure to cosmic radiation or potassium-40 in the

body.

Any radioactive material or action not amenable to regulatory control.

Group IV hazardous substances as defined in the Hazardous Substances Act.

Group III hazardous substances in term of the Hazardous Substances Act


3. HIGHLIGHTS FROM THE ANNUAL REPORT

(2005/6)


REGULATORY CONTROL OVER POWER REACTOR FACILITIES


REGULATORY OVERSIGHT OF KNPS

The current KNPS authorization, Nuclear Installation Licence NL-1 Variation 16, issued to Eskom in terms of section 23 of the NNR Act, is subject to 16 conditions, including specific licensing requirements , which form the basis for the NNR regulatory oversight of Koeberg in protecting the public, property and the environment.



SAFETY ASSURANCE ACTIVITIES

Safety assessments

– As in previous years a major part of the NNR’s work associated with KNPS related to the verification of nuclear safety through conducting of in depth safety assessments related to plant modifications, plant condition management and probabilistic risk assessment.



SAFETY ASSURANCE ACTIVITIES (Cont…)

Occupational Exposure to radiation

Radiation exposures to personnel working at Koeberg are subject to control by the operational radiation protection programme which ensures that control within the annual individual dose limit, set by the NNR, is achieved .

In terms of occupational exposure, the worker doses over the reporting period were within the regulatory limits.

Public Exposure to radiation

Public exposure to radiation is controlled within strictly defined limits, set by the NNR, through the implementation of a radiological emission and effluent management programme, which ensures that the discharges of radioactivity from Koeberg result in no significant risk to the public

There were no concerns regarding the safety of the public living around KNPS during the reporting period.



Emergency Planning and Preparedness

The NNR conducted a full scale nuclear emergency exercise at the KNPS on 15 February 2006.

Overall the response of the licensee (Eskom) and the intervening organisations was satisfactory.

The NNR umpires identified a few areas of concern and potential areas for improvement of the Koeberg Emergency Plan.

Some aspects of the “late phase” plan need further improvement and testing.

The exercise report indicating the NNR graded findings and expected dates for implementation of corrective actions was sent to Eskom and the relevant authorities.

NNR is monitoring implementation of identified corrective actions





Inspections and audits

The NNR conducted independent compliance assurance inspections (approximately 207 inspections ) and audits at KNPS as part of its compliance assurance programme.

Although , during these inspections and audits ,the NNR identified problems and potential areas for improvement the NNR was satisfied with the overall compliance of KNPS.

Incidents and occurrences

Although many occurrences (approximately 457) were reported at KNPS none of these were assessed by the NNR as falling in the category of incidents and accidents as defined in the NNR Act.


REGULATORY ISSUES

1.Development around the Koeberg plant – impact on Emergency Planning

The NNR requirements related to the Regulation 287 in terms of section 38(4) of the NNRA being implemented via a requirement document RD 0015 “NNR requirements on the control and monitoring of developments in the formal emergency planning zone of Koeberg Nuclear Power Station” issued to the authorities in June 2005

Application to subdivide a property within the 5 km “Urgent Protective Action Zone” (UPZ) into approximately 1100 erven made to the City Of Cape Town

This application contravenes the Regulation 287 and RD-0015

The NNR instituted legal action to prevent approval of this application by the authorities and the process was stopped.



REGULATORY ISSUES Cont …

Development around the Koeberg plant – impact on Emergency Planning

The applicant approached the Cape Town High Court to contest the decision

“Notice of Motion”, issued by the High Court of South Africa (Cape of Good Hope Division) was served on the NNR (2nd respondent) and other 4 respondents: Minister of Minerals and Energy (1st respondent), Eskom, Premier of Western Cape, City of Cape Town)

In terms of the Notice, application was made for an order to declare Regulation 287 and the requirements of RD-0015 regarding the 5 km zone unlawful and invalid.

NNR has prepared a complete copy of all proceedings, which led to the Regulation, and RD-0015 and this was provided to the firm of attorneys handling the issue for the NNR.

The next step will be for the matter to be heard at the High Court –which is scheduled for May 2007.



EVENTS AT KOEBERG

1. UNIT 1 Generator failure in December 2005

As a follow up to this event Eskom’s investigation was unable to conclusively determine the root cause but from the presence of the bolt in the generator it is clear that the clean conditions, as required by the foreign material exclusion programme, that were implemented in outage 115 were inadequate.

Eskom identified and implemented several corrective actions

As part of the closure of this event the NNR conducted an inspection, during the plant refueling outage on Unit 2 in May-June 2006, on the process relating to foreign material exclusion.

The NNR is satisfied with the improvements made to this process, including additional training and oversight. The NNR will continue to monitor this process at future outages



EVENTS AT KOEBERGUNIT 1 Generator failure in December 2005 Cont …

The NNR received and reviewed the investigation report from NIA related to physical security.

The NNR has no basis, based on the report, to conclude that there were breaches to physical security at KNPS.

The NNR has determined that the physical security protection measures for the nuclear safety related equipment were not challenged and are adequate to ensure nuclear safety at KNPS.



EVENTS AT KOEBERG2. Off site power supplies failure

Several events between 25 December 2005 and June 2006 resulted in grid failures to the Western Cape

As an integral part of its investigation the NNR required several reports from Eskom to address the reliability of the off-site power supplies

The NNR has received these reports and completed the review.

The NNR is satisfied with the measures and corrective actions taken and implemented by Eskom to improve the reliability of off-site power supplies and will continue to monitor the effectiveness of these



During the reporting period the NNR continued to review the nuclear installation licence application submitted by

Eskom.

Main NNR licensing activities are linked to the resolution of Key Licensing Issues (KLIs) and safety issues identified by the NNR during the NNR review of the PBMR safety case.

In parallel to this process the NNR also performed preliminary reviews of the revised draft Safety Analysis Report (SAR)

As an integral part of its review of the licence application in terms of its compliance assurance programme, the NNR also performed or observed audits on some potential suppliers to the PBMR Company

No nuclear installation licence has been issued. The issuance of the nuclear installation licence will be subject to receipt and the satisfactory review of the safety case, and the finalisation of the NNR public hearing process.

REGULATORY OVERSIGHT OF PBMR


REGULATORY CONTROL OVER NUCLEAR TECHNOLOGY AND

NATURAL SOURCES


Mining and mineral processing facilities are regulated by means of a Certificate of Registration in terms of Section 22 (1) of the National Nuclear Regulator Act.

A typical Certificate of Registration (CoR) has about 10 authorization conditions.

Authorization conditions of a CoR cover the same scope as that of a nuclear installation licence.

Currently 118 facilities have been authorised by the NNR

REGULATORY OVERSIGHT OF MINING AND MINERALS

PROCESSING



Safety Assessments

As in previous years a major part of the NNR’s work associated with the mining and minerals processing facilities related to the verification of nuclear safety through conducting of in depth safety assessments related to modifications, facilities condition management and hazards assessment.


PROCESSING


SAFETY ASSURANCE ACTIVITIES Occupational Exposure to radiation

Radiation exposures to personnel working at these facilities are subject to control by the operational radiation protection programme which ensures that control within the annual individual dose limit, set by the NNR, is achieved.

The number of workers exposed to above the dose limit of 50 mSv/a has been decreasing over the last five years.

The NNR is nevertheless concerned that there are still workers, 8 for the period under review, being exposed above the dose limit.

In these instances, the NNR has directed the relevant holders to implement mitigative actions, including relocation of the affected workers to prevent further exposure.

The NNR continues to closely monitor the situation


PROCESSING



Public exposure to radiation due to NORM facilities is controlled in terms of public dose limit imposed by the NNR.

There were no concerns regarding the safety of the public leaving around NORM facilities during the reporting period.

Radioactive waste safety

Radioactive waste material from NORM facilities is controlled in terms of NNR requirements for radioactive waste management

In terms of the quantities generated, the NNR is satisfied that waste is controlled in line with NNR requirements.


PROCESSING


Inspection and Audits

A total of 212 inspections were conducted during the reporting period.

A total number of 7 formal audits at various mining facilities were conducted to ascertain the degree to which these mines were complying with quality management systems.

The audits revealed that most holders had not yet fully implemented a proper quality management system.

The authorisation holders were directed to schedule the implementation of the Quality Management System

The NNR is monitoring this situation.


PROCESSING


Incidents or Occurrences

A total of 14 occurrences were reported by holders during the period.

Four were Class 1, which is a more severe case

The NNR required the holders to provide corrective and preventative plans in response to these occurrences

Although several occurrences were reported by the NORM facilities none of these were assessed by the NNR as falling in the category of incidents and accidents as defined in the NNR Act.


PROCESSING


Necsa operations at the Pelindaba are regulated in terms of Nuclear Installation Licence, NL-27.

NL-27 has 22 licence conditions which sets out specific licensing requirements.

These conditions form the basis of the NNR regulatory oversight of Necsa in protecting of the public, property and the environment.

REGULATORY OVERSIGHT OF NECSA – PELINDABA SITE



Safety Assessments

The NNR approved 99 licence change requests by Necsa during the reporting period. These included safety assessments, facility operational technical specifications, in-service inspection manuals, radiation protection standards, security manuals and quality management manuals.





Radiation exposures to personnel working at Necsa (Pelindaba) are subject to control by operational radiation protection programme which ensures that control within the annual individual dose limit set by the NNR is achieved.



Public exposure to radiation is controlled within strictly defined limits, set by the NNR, through the implementation of a radiological emission and effluent management programme, which ensures that the discharges of radioactivity from Necsa (Pelindaba) result in no significant risk to the public

There were no concerns regarding the safety of the public living around Necsa (Pelindaba) during the reporting period.



SAFETY ASSURANCE ACTIVITIES Emergency Preparedness

The NNR conducted a full scale nuclear emergency exercise at the Necsa (Pelindaba) in November 2005.

Overall the response of the licensee (Necsa) and the intervening organisations was satisfactory.

The NNR umpires identified some concerns and potential areas for

improvement of the Emergency Plan.

The exercise report indicating the NNR findings was communicated to Necsa.

Necsa submitted a corrective action plan to address the findings and ensure full compliance with regulatory requirements.

The NNR is monitoring the implementation of the identified corrective actions.




Inspections and Audits

During the reporting period NNR inspectors performed a total of 153 compliance inspections on the Necsa site. These inspections covered all aspects of the licensing conditions.

The NNR was satisfied with the level of compliance of Necsa.

Incidents and Occurrences

A total of 114 occurrences were reported at Necsa

None of these were in the category of incidents or accidents as defined in the NNR Act.



1. Necsa Calibration facility

As a follow up to the Necsa calibration facility issue, the NNR strengthened controls of the facility.

Necsa was directed to strengthen physical security, erect appropriate signage, and to apply for a separate authorisation.

The calibration facility is currently under a separate authorisation.

The NNR is satisfied with the improvements made to the controls of this facility


EVENTS AT NECSA


2. Breaches Of Physical Security

• A number of breaches with regard to physical security were reported by Necsa in the latter half of 2005. These involved theft of material and equipment from within stores on the Pelindaba site.

• NNR conducted investigations which included: audits and inspections for physical security and benchmarking exercise with KNPS physical security

• The NNR was not satisfied with the level of physical security at the Pelindaba site.


EVENTS AT NECSA


Necsa was directed to:

Procure the services of a security expert to evaluate their physical security system and to make immediate improvements to the system to prevent intrusion and theft of material or diversion of radioactive material.

Upgrade security instrumentation and monitoring. Restrict site access outside of normal working hours. Place a moratorium on new commercial tenants on the

site.

A SAPS report has now been provided to the NNR

Necsa has put in place an action plan to upgrade physical security and the NNR is monitoring the implementation of this plan.


EVENTS AT NECSA


3. Contamination in Building P-1500

A contamination incident occurred in building P-1500 during the preparation of samples consisting of radioactive tracers (gold and lanthanum) in early December 2005.

Samples were spilled resulting in contamination of the

building. On detection of the contamination, the Necsa emergency

response plan was activated; all persons were removed and the building was sealed off.

Since the samples fall within the Group IV substances, the lead Regulator was the Directorate of Radiation Control (DRC) in the Department of Health.


EVENTS AT NECSA


However, the NNR conducted its own investigation into the incident and concluded that there was no safety concern to the workers.

The NNR investigation also identified some inadequacies which could have contributed to the occurrence.

This incident has highlighted the need for strengthening coordination of regulatory oversight between the NNR and the DRC.


EVENTS AT NECSA


The NNR continued to review the nuclear installation licence application submitted by Necsa in June 2000 for the prospective siting, construction, operation, decontamination, and decommissioning.

This Nuclear Installation Licence application was subsequently withdrawn by Necsa in October 2005.

A new application was received from PBMR Fuel Company in October 2005

The NNR is currently reviewing this application

No nuclear licence has been issued.

The issuance of the licence is subject to:

Receipt and successful review of the Safety Case The conclusion of the a public participation process, as

required by the NNR Board

REGULATORY OVERSIGHT OF PBMR FUEL MANUFACTURING PLANT


The current Vaalputs authorization Nuclear Installation Licence NL-28 Variation 3, issued to Necsa in terms of section 23 of the NNR Act, is subject to 5 conditions which form the basis for the NNR regulatory oversight of Vaalputs in protecting the public, property and the environment.

REGULATORY OVERSIGHT OF NECSA – VAALPUTS SITE



Safety assessments

The safety assessments for Vaalputs includes the review of facility operational technical specifications, in-service inspection manuals, radiation protection standards, security manuals and quality management manuals.





Personnel working at the Vaalputs site are subject to control by the operational radiation protection programme to ensure that annual individual dose limits which are set by the NNR are complied with.



There were no concerns regarding the safety of the public living around Vaalputs during the reporting period.



SAFETY ASSURANCE ACTIVITIES Inspections and Audits

During the reporting period NNR inspectors performed a total of 23 compliance inspections on the Vaalputs site. These inspections covered all aspects of the licensing conditions.

The NNR was satisfied with the level of compliance of Necsa at the Vaalputs site.

Incidents or Occurrences

There were no incidents associated with the Vaalputs site reported in the reporting period.




Radioactive Waste Safety

Vaalputs is only licensed to dispose of radioactive waste from Koeberg.

During the reporting period 18 shipments consisting of 319 radioactive waste packages were received at the Vaalputs site from Koeberg for final disposal.

This waste has been assessed to meet the requirements of the Vaalputs waste acceptance criteria.



4. ANNUAL FINANCIAL STATEMENTS FOR 2005/06


Background

The Public Finance Management Act, 1999 (Act No. 1 of 1999, as amended, requires the directors to ensure that the NNR keeps full and proper records of its financial affairs.

The annual financial statements must fairly present the NNR’s financial position, its performance against predetermined objectives and in terms of Generally Accepted Accounting Practice.

ANNUAL FINANCIAL STATEMENTS


INCOME STATEMENT The NNR generated Revenue from Authorisation fees of

R47,647m in comparison to R44,531m in the previous financial year. This represents an increase of 7%, mainly due to the improvement in the system of internal controls around revenue collection.

Overall increase in operation income of 1% from R52,598m in previous financial year to R53,256m in 2006, this performance is despite a reduction of R2,650m in the State Grant from R8,067m in 2005 to R5,417m.

Total operating expenditure for the year amounted to R 52,271m in comparison to the budget R56, 941m. This represents an under-expenditure of R4,671 resulting from unfilled 15 vacancies at year end.



BALANCE SHEET Working Capital Management improved significantly; this is

indicated by the following:

Trade and Other Receivables as a percentage of authorisation fees decreased from 21,86% in 2005 to 5,27% in the current year. This is an indication of improvement in the collection of debtors.

Trade Payables and Provisions as a percentage of total expenditure dropped slightly from 9.72% in the previous year to 8,77 in the current year. This is an indication of tight cash flow management.

Net increase in cash and cash equivalents increased from R4,6m in the previous year to R12,9m in the current year, further indicating improvements in collection and cash flow management.



BALANCE SHEET

Post medical Liability

The NNR operates both a defined benefit plan in respect of post-retirement medical aid contributions as well as in respect on the pension fund. The defined benefit plans are subject to an annual actuarial valuation.

Actuaries valuation of the liability at year end was R27,937m compared to R25, 315m in the previous financial year.



5. CONCLUSION


In general, the NNR is satisfied with the safety

performance of the various regulated entities in terms of protecting the workers, public and the environment.

The NNR was, however, concerned about certain occurrences, specifically: Reliability of off-site power supplies with respect to Koeberg

While the NNR is satisfied with the corrective actions implemented by ESKOM, the NNR continues to monitor the situation

Physical security with respect to Necsa In response to the NNR directive, Necsa has made

improvements to the Physical security arrangements. The NNR continues to monitor the situation.

Over-exposure of workers in some mines Whilst the NNR is satisfied with the implementation of the

mitigative actions by the relevant authorisation holders, the NNR continues to monitor the situation.

CONCLUSION

Parliamentary Portfolio Committee on Minerals and Energy

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