[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3980]


[[Page Unknown]]

[Federal Register: February 23, 1994]


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NUCLEAR REGULATORY COMMISSION
[Docket No. 030-29567, License No. 20-27908-01, EA 94-035]

 

Cameo Diagnostic Centre, Inc., Springfield Massachusetts; Order 
Modifying Order Imposing Civil Monetary Penalty

I

    Cameo Diagnostic Centre, Inc. (Licensee) is the holder of a 
Byproduct Material License No. 20-27908-01 (License) originally issued 
by the Nuclear Regulatory Commission (NRC or Commission) on January 30, 
1987. The License authorizes the Licensee to perform diagnostic 
procedures with radioactive byproduct material and to store Promethium-
147, in accordance with the conditions specified therein.

II

    An inspection of the Licensee's activities was conducted on 
December 29, 1992. During the inspection, nine violations of NRC 
requirements were identified. A Notice of Violation and Proposed 
Imposition of Civil Penalty (Notice) was served upon the Licensee by 
letter dated April 16, 1993. The Notice stated the nature of the 
violations, the provisions of the NRC's requirements that the Licensee 
had violated, and the amount of the civil penalty proposed for the 
violations. The Licensee responded to the Notice on June 11 and July 
23, 1993. In its response, the Licensee objected to the 
characterization of Violations I.A and I.B as ``willful'', and to the 
classification of these violations at Severity Level III; protested the 
civil penalty assessed for Violations I.A and I.B; and requested 
remission of that penalty.
    After consideration of the Licensee's response and the statements 
of fact, explanation, and argument contained therein, the NRC staff 
determined that the violations occurred as stated in the Notice, the 
Severity Level classification was appropriate, and the penalty proposed 
for Violations I.A and I.B should be imposed. Accordingly, the NRC 
issued an Order Imposing A Civil Monetary Penalty--$1,750 on November 
24, 1993. The Licensee responded in a letter dated December 17, 1993 
and requested a hearing. On February 1, 1994, the Atomic Safety and 
Licensing Board (ASLB) designated to preside in this proceeding held a 
prehearing conference.
    Violation I.B., as set forth in the Notice, cited the Licensee 
against 10 CFR 30.9(a) for a failure to provide to the Commission 
information that was complete and accurate in all material respects. 
During the February 1, 1994 prehearing conference, the ASLB ordered the 
Staff, among other things, to prepare a brief addressing whether a 
total failure to provide material information to the Commission can, as 
a matter of law, constitute a violation of 10 CFR 30.9(a).

III

    The NRC staff has reconsidered whether Violation I.B. as stated in 
the Notice fully reflected the facts of this case. The original 
citation for Violation I.B. did not assert that a statement of the 
Licensee was inaccurate or incomplete, but rather, that the Licensee's 
omission constituted a violation of 10 CFR 30.9(a). After reevaluating 
the facts of this case, and statements made by the inspector and the 
Licensee, the staff is modifying Violation I.B based on an inaccurate 
statement made by the Licensee in answer to a question asked during a 
telephone call on November 12, 1992. This statement was confirmed in a 
letter issued the next day on November 13, 1992. Thereafter, during 
calls on November 19 and 25, 1992 the staff reiterated the need to 
obtain a license amendment before possessing material at the new 
location. However, the licensee did not correct the staff's 
understanding after receipt of the letter or during the November 19 and 
25, 1992 telephone calls.

IV

    In view of the foregoing and pursuant to section 234 of the Atomic 
Energy Act of 1954, as amended, (Act), 42 U.S.C. 2282, and 10 CFR 
2.205, it is hereby ordered that, Violation I.B of the notice and order 
be modified to read: 10 CFR 30.9(a) requires, in part, that information 
provided to the Commission by a licensee be complete and accurate in 
all material respects.
    Contrary to the above, the Licensee did not provide to the 
Commission information that was complete and accurate in all material 
respects. Specifically, during a November 12, 1992 telephone 
conversation in response to a question from Region I as to whether the 
Licensee had licensed materials at its new address (155 Maple Street, 
Springfield, MA), the Licensee responded negatively. The licensee 
response was confirmed in a letter from NRC to the licensee dated 
November 13, 1992 which stated that it was the NRC ``understanding 
that: * * * 2. You [licensee] do not as yet possess any licensed 
radioactive material at this new facility.'' Therefore, the Licensee 
provided inaccurate information to the Commission in that it had 
possessed licensed materials at its new address. This information was 
material because, had the correct information been known, it would have 
resulted in action by the NRC to prohibit licensed activity at the new 
address until a license amendment had been granted.

V

    The Licensee shall respond to this modified Order within 20 days of 
the date of this Order by requesting that the NRC proceed with the 
Licensee's December 17, 1993 request for a hearing or by withdrawing 
its hearing request. The response to this Order shall be addressed to 
Mr. James Lieberman, Director, Office of Enforcement, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, with a copy to the 
Commission's Document Control Desk, Washington, DC 20555. Copies also 
shall be sent to the Atomic Safety and Licensing Board presiding over 
the proceeding on the December 13, 1993 hearing request and Counsel for 
the NRC staff in that proceeding at the same address and to the 
Regional Administrator, NRC Region I, 475 Allendale Road, King of 
Prussia, Pennsylvania 19406.
    If the Licensee withdraws its request for a hearing, payment of the 
civil penalty shall be made within 30 days of the date of this Order. 
If full payment of the civil penalty has not been made by that time, 
the matter may be referred to the Attorney General for collection.
    In the event that the Licensee requests proceeding with a hearing 
as provided above, the issues to be considered at such hearing shall 
be:
    (a) Whether the Licensee was in violation of the Commission's 
requirements as set forth in Violation I.A. of the Notice referenced in 
Section II above and Violation I.B. as modified in Section IV above, 
and
    (b) Whether, on the basis of such violations, this Order should be 
sustained.


    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland, this 15th day of February 1994.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards and 
Operations Support.
[FR Doc. 94-3980 Filed 2-22-94; 8:45 am]
BILLING CODE 7590-01-M