Information Notice No. 85-19: Alleged Falsification of Certifications and Alteration of Markings on Piping, Valves, and Fittings

                                                        SSINS:  6835  
                                                          IN 85-19 

                               UNITED STATES 
                       NUCLEAR REGULATORY COMMISSION 
                    OFFICE OF INSPECTION AND ENFORCEMENT 
                           WASHINGTON, D.C. 20555 

                               March 11, 1985 

Information Notice No. 85-19:  ALLEGED FALSIFICATION OF CERTIFICATIONS  
                                  AND ALTERATION OF MARKINGS ON PIPING,    
                                  VALVES, AND FITTINGS 

Addressees: 

All nuclear power facilities holding an operating license (OL) or a con-
struction permit (CP). 

Purpose: 

This information notice is provided to bring to the attention of licensees 
and construction permit holders allegations of falsification of certifica-
tions and alteration of markings on piping, valves, and fittings. It is 
expected that recipients will review the information for applicability to 
their facilities. However, suggestions contained in this information notice 
do not constitute NRC requirements; therefore, no specific action or written
response is required. 

Description of Circumstances: 

On November 29, 1984, the Nuclear Regulatory Commission (NRC) was notified 
by the Portland General Electric Company (PGE) of a potentially reportable 
condition under 10 CFR 21 regarding components purchased by the licensee 
from Familian Northwest, 2121 N. Columbia Boulevard, Portland, Oregon. 
Familian Northwest is under investigation by the U.S. Customs Service in 
Portland, Oregon, the U.S. Attorney's office in Seattle, Washington, and the 
Cowlitz County (Washington) Sheriff's Department, with participation by the 
FBI. The investigation centers on allegations that the Familian Northwest 
facility at Longview, Washington has falsified certificates and altered 
markings on piping, valves, and fittings. The Longview facility is 
specifically alleged to have upgraded 304 and 316 stainless steel 1 1/2 inch 
pipe to 316L by grinding off the original marking and marking with the 
upgraded designation. Foreign pipe also is alleged to have been altered to 
indicate it was of domestic origin. These practices have allegedly been 
going on for a long time. 

Familian Northwest is believed to have offices principally in the North-
western United States, including Portland, Oregon; Anchorage, Alaska; and 
Seattle, Tacoma, Bremerton, Longview and Kennewick, Washington. The company 
has sales of approximately $90 million annually in a wide range of plumbing 
supplies as well as power plant piping, valves, and fittings. Familian 
Northwest is also believed to import materials of the type discussed above 
from foreign manufacturers. 


8503060540 
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                                                           IN 85-19  
                                                           March 11, 1985 
                                                           Page 2 of 2 

Two points should be noted: (1) None of the allegations concerning Familian 
Northwest have been reported to the NRC as having been substantiated or 
proven to be true at this time; (2) Familian Corp, 7651 Woodman Avenue, Van 
Nuys, California 91402, has advised the NRC that Familian Northwest is a 
totally separate corporate entity from Familian Corp; neither sharing any 
officers/ directors or shareholders. Familian Corp is a holding company with
the following subsidiaries (among others): Familian Pipe and Supply Company;
Familian Sierra Crafts, Inc.; Familian International Corporation. 

No specific action or written response is required by this information 
notice. If you have any questions about this matter, please contact the 
Regional Administrator of the appropriate NRC regional office or this 
office. 


                                   Edward L. Jordan, Director 
                                   Division of Emergency Preparedness 
                                     and Engineering Response 
                                   Office of Inspection and Enforcement 

Technical Contact:  Henry Bailey, IE 
                    (301) 492-9006 

Attachment: 
List of Recently Issued IE Information Notices