[Federal Register Volume 59, Number 9 (Thursday, January 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-704]


[[Page Unknown]]

[Federal Register: January 13, 1994]


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NUCLEAR REGULATORY COMMISSION
[General License 10 CFR 150.20 EA 92-102]

 

Modified Confirmatory Order; American Testing and Inspection, 
Inc. Country Club Hills, IL

I

    American Testing and Inspection, Inc. (ATI), was formerly holder or 
State of Illinois Byproduct Material License No. 01085-01 (License) 
issued on January 8, 1988. The License authorized the possession and 
use of sealed sources of iridium-192 in industrial radiographic 
exposure devices to perform licensed activities within the State of 
Illinois. Pursuant to 10 CFR 150.20 and its License, ATI was authorized 
to possess and use licensed byproduct materials to perform industrial 
radiography in non-Agreement States. ATI's License expired on August 
31, 1992. The License was transferred to McNDT Leasing, Inc. and 
amended in its entirety in accordance with letters dated August 31, 
1992 and September 3, 1992.

II

    An inspection by the Nuclear Regulatory Commission (NRC) was 
conducted on February 12 through March 27, 1992, of ATI's activities 
that were conducted in the States of Indiana and Michigan (non-
Agreement States). Six violations were identified, including (1) the 
failure to file NRC Form 241 on 174 days in 1991 when performing 
radiography in non-Agreement States in accordance with 10 CFR 
150.20(b)(1); (2) performing radiography in non-Agreement States on 
more than 180 days within calendar year 1991 in violation of 10 CFR 
150.20(b)(3); and (3) the failure of ATI to have a qualified 
independent organization observe ATI's radiographers or conduct an 
audit of ATI's radiation safety program in violation of Section IV.C. 
of an Order Modifying License that was issued by the NRC to ATI on 
November 30, 1989.
    The NRC issued Enforcement Action (EA) 92-102 against ATI 
consisting of a Notice of Violation and Proposed Imposition of Civil 
Penalty-$15,000 (Notice) dated October 7, 1992. Mr. Ronald Preston, 
formerly President, ATI, responded on November 30, 1992, to the Notice 
admitting the violations, but requesting that the proposed civil 
penalty be vacated since ATI had gone into Chapter 7 bankruptcy and 
ceased industrial radiography operations. The Notice did not preclude 
Mr. Preston from performing radiography under another licensee's 
Agreement State license and, pursuant to 10 CFR 150.20, from engaging 
in licensed activities in NRC jurisdiction.
    A Confirmatory Order was issued on March 24, 1993, which 
constituted settlement of the civil penalty proposed in the Notice. In 
that Order, the civil penalty was withdrawn on the basis of Mr. 
Preston's inability to pay the $15,000 civil penalty and subsequent 
proposal that for a period of three years, he, ATI, or a successor 
entity wherein Mr. Preston is an authorized user, radiographer, 
radiographer's assistant, Radiation Safety Officer, an Assistant 
Radiation Safety Officer, an officer, or a controlling stockholder, 
would not apply to the NRC for a new license, nor would Mr. Preston, 
ATI, or a successor entity, as described above, engage in licensed 
activities within NRC jurisdiction for that same period of time.

IV

    The Confirmatory Order was executed on March 24, 1993. In August 
and September 1993, Mr. Preston indicated a financial need to engage in 
licensed activities; however, he remained unable to pay the $15,000 
civil penalty. Specifically, on September 23, 1993, Mr. Preston 
contacted Ms. Patricia A. Santiago of the NRC Office of Enforcement, 
and indicated he was unable to obtain a loan or funds and requested 
that he be permitted to work as an assistant radiographer. In light of 
the fact that Mr. Preston has recognized the violations that led to the 
previous enforcement action, and Mr. Preston's inability to pay the 
$15,000 civil penalty and need to earn a livelihood, the NRC has 
reconsidered its previous order, and is satisfied that with the 
protections afforded by the supervision provided to an assistant 
radiographer, the Confirmatory Order may be modified as set forth below 
consistent with protection of the public health and safety. The NRC is 
willing to modify the Confirmatory Order to permit Mr. Preston to work 
as an assistant radiographer, with the addition of certain notice 
requirements.

V

    Accordingly, pursuant to sections 81, 161b, 161i, 186, and 234 of 
the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR 2.202, 2.205, and 10 CFR parts 30, 34, and 150, 
it is hereby ordered, stipulated and agreed between the NRC and Mr. 
Preston as follows:
    1. Except as provided in paragraph 4 below, the NRC withdraws the 
civil penalty of $15,000 as proposed in the Notice dated October 7, 
1992 (EA 92-102);
    2. Until March 23, 1996, Mr. Preston, ATI, or any successor entity, 
wherein Mr. Preston is an authorized user, radiographer, Radiation 
Safety Officer, an Assistant Radiation Safety Officer, an officer, or a 
controlling stockholder, will not apply to the NRC for a new license.
    3. From the date Mr. Preston signs this Modified Confirmatory Order 
until March 23, 1996, Mr. Preston may engage in licensed activities 
within NRC jurisdiction only as an assistant radiographer. He may not 
act as a radiographer, supervisor, or Radiation Safety Officer within 
NRC jurisdiction. If Mr. Preston acts as an assistant radiographer 
within NRC jurisdiction during this period, he shall:
    a. Notify the Regional Administrator, NRC Region III, 799 Roosevelt 
Road, Glen Ellyn, Illinois, 60137, at least five days prior to his 
being employed to perform work as an assistant radiographer within NRC 
jurisdiction. The Notice shall include the name, address, and telephone 
number of the NRC or Agreement State licensee; and
    b. Provide a copy of this Modified Confirmatory Order to any 
employer holding either an NRC license or an Agreement State license 
performing licensed activities in NRC jurisdiction, prior to his 
performing work for that employer as an assistant radiographer.
    4. Notwithstanding the provisions of paragraph 1, above, in the 
event that Mr. Preston, ATI, or a successor entity violates paragraph 3 
of this Section, then the civil penalty of $15,000 will be reinstated 
by an Order Imposing Civil Penalty and the civil penalty of $15,000 
will be due in full within 30 days of the date of that Order Imposing 
Civil Penalty.
    5. Mr. Preston, ATI, and any successor entity waive the right to 
contest this Modified Confirmatory Order in any manner, including 
requesting a hearing on this Amended Confirmatory Order or the Order 
Imposing Civil Penalty, should one be issued as provided in paragraph 4 
of this Section.

    For the Nuclear Regulatory Commission.

    Dated: January 5, 1994.
James Lieberman,
Director, Office of Enforcement.
    For American Testing and Inspection, Inc. and Ronald Preston.

    Dated: December 1, 1993.
Ronald Preston,
Former President, American Testing and Inspection, Inc.
[FR Doc. 94-704 Filed 1-12-94; 8:45 am]
BILLING CODE 7590-01-M