[Federal Register Volume 59, Number 55 (Tuesday, March 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6643]


[[Page Unknown]]

[Federal Register: March 22, 1994]


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NUCLEAR REGULATORY COMMISSION
[Docket No. 030-33158; License No. 35-12400-03]

 

Confirmatory Order Modifying License (Effective Immediately) and 
Demand for Information

    In the Matter of: WeGo Perforators, Inc., ATTN: Radiation Safety 
Officer, P.O. Box 594, Ada, Oklahoma 74820.

I

    WeGo Perforators, Inc. (Licensee) is the holder of Materials 
License No. 35-12400-03, issued by the Nuclear Regulatory Commission 
(NRC or Commission) by an Order dated April 30, 1993, pursuant to the 
Atomic Energy Act, as amended, 42 U.S.C. 2011 et seq., that authorized 
the Licensee to possess and store a sealed source containing byproduct 
material incident to license termination. The expiration date for the 
license was October 31, 1993; however, pursuant to 10 CFR 30.36(e), the 
license continues in effect beyond that date with respect to possession 
of residual byproduct material present as contamination until the 
Commission notifies the Licensee in writing that the license is 
terminated. Notwithstanding the form of the subject byproduct material 
(a sealed source), the license has not been terminated by the 
Commission and continues in effect.

II

    The Licensee is in possession of an Americium 241 (Am-241) well-
logging source (Monsanto Co. Model MRC-N-SS-W-AmBe). On November 15, 
1993, the NRC received a letter from the Licensee dated November 11, 
1993, stating that efforts to dispose of the Licensee's source have 
been unsuccessful. On December 6, 1993, an NRC inspector confirmed that 
a sealed source containing byproduct material is still stored at the 
Licensee's facility. The inspector observed that the Licensee was 
controlling access to the source in accordance with the Commission's 
regulatory requirements.
    The Commission's regulation in 10 CFR 30.36(c)(1)(iii) and the 
provisions of the NRC's Order of April 30, 1993, required that the 
Licensee properly dispose of byproduct material before the license 
expired on October 30, 1993. As stated above, the Licensee is still in 
possession of its Am-241 source. Accordingly, the Licensee is in 
violation of the Commission's regulatory requirements.

III

    The Licensee's Am-241 source is greater than Class C waste, as 
defined in 10 CFR 61.55. Accordingly, disposal of the source may not be 
accomplished under 10 CFR part 61 but must await the availability of a 
high-level waste repository meeting the standards of 10 CFR part 60. As 
set forth below, the Licensee's options for disposal of its source now, 
as required by 10 CFR 30.36(c), appear to be limited.
    The Licensee could attempt to sell the source. However, the source 
is of a design no longer authorized for its original intended use, well 
logging operations. In addition, the Licensee could arrange for another 
licensed person to accept the source for recycling or storage until a 
waste repository is available. However, there are few programs 
available for recycling/storage of sealed sources. Such a program, if 
available, typically requires a large fee.
    Currently, the Department of Energy (DOE) will take possession of 
sources similar to the Licensee's and store them only in responding to 
emergency situations when the NRC is confronted with a potentially 
serious threat to public health and safety (Letter dated April 7, 1992, 
from L.P. Duffy, DOE, to R.M. Bernero, NRC). Because the Licensee is 
controlling access to the source and safely storing it, the DOE 
criteria for accepting the source on an emergency basis are not now 
met.
    While the Licensee may have other options for disposing of the 
source, in view of the above, the most likely options for disposal of 
the source in the near future appear to be foreclosed. Accordingly, it 
is necessary to modify the license to require the Licensee to store the 
source in a manner that will ensure that the source will not be a 
hazard to public health and safety. In a telephone conversation held on 
March 4, 1994, between William L. Fisher, NRC, and Mr. Marshall S. 
Brackin, WeGo Perforators, the Licensee agreed to the imposition of the 
requirements set forth in Section IV of this Order.

IV

    In view of the foregoing and pursuant to sections 81, 161b, 161c, 
161i, 161o, 182, and 186 of the Atomic Energy Act of 1954, as amended, 
and the Commission's regulations in 10 CFR 2.202 and 10 CFR parts 30 
and 39, it is hereby ordered, effective immediately, that:

    A. The Licensee is authorized to possess, but not use, its 
sealed neutron source;
    B. The Licensee shall safely store its sealed neutron source at 
its facility in Ada, Oklahoma in accordance with the Commission's 
regulations, the conditions set forth below, and the conditions of 
the modified license in the Appendix to this Order;
    C. In accordance with 10 CFR 30.36, License No. 35-12400-03, as 
modified by this Order, shall continue in effect until disposal of 
the sealed neutron source is complete and the Commission notifies 
the Licensee in writing that the license is terminated; and
    D. License No. 35-12400-03 is modified as follows:
1. Current license condition 13 is modified as follows:
    13. Notwithstanding the periodic leak test required by 10 CFR 
39.35, sources that are stored and not being used shall be tested 
for leakage at intervals not to exceed 3 years. In addition, sources 
shall be tested for leakage within 6 months before transfer to 
another person;
2. Current license condition 14 is renumbered as new condition 15, 
and replaced by new condition 14 as follows:
    14. The Licensee shall conduct a physical inventory every 6 
months in accordance with 10 CFR 39.37;
3. Current license condition 15 is renumbered as new condition 16, 
and replaced by new condition 15 as follows:
    15. The Licensee shall not vacate or release to unrestricted use 
the storage location identified in Condition 10 without prior U.S. 
Nuclear Regulatory Commission approval;
4. Current license condition 16 is renumbered as new condition 20;
5. New condition 17 is added, as follows:
    17. The Licensee is authorized to transport licensed material in 
accordance with the provisions of 10 CFR part 71, ``Packaging and 
Transportation of Radioactive Material,'' for the sole purpose of 
transferring material in its possession to another person;
6. New condition 18 is added, as follows:
    18. The Licensee shall continue to take all actions within its 
ability to dispose of its sealed neutron source;
7. New condition 19 is added, as follows:
    19. Within 30 days of disposing of its sealed neutron source, 
the Licensee shall notify the Commission in writing and request 
termination of the license in accordance with 10 CFR 30.36(b).

    Except as modified above, the Commission's other requirements 
regarding expiration and termination of licenses in 10 CFR 30.36 remain 
in effect and apply to the Licensee. Failure to comply with any of the 
above conditions may result in further enforcement action.
    The Regional Administrator, NRC Region IV, may relax or rescind any 
of the above conditions upon the Licensee's showing, in writing and 
under oath or affirmation, of good cause.

V

    Any person other than the Licensee adversely affected by this 
Confirmatory Order may request a hearing on this Order within 20 days 
of the date of this Order. Any request for a hearing shall be submitted 
to the Secretary, U.S. Nuclear Regulatory Commission, Attn: Chief, 
Docketing and Service Branch, Washington, DC 20555. Copies also shall 
be sent to the Director, Division of Industrial & Medical Nuclear 
Safety, Office of Nuclear Material Safety & Safeguards, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555; the Assistant General 
Counsel for Hearings and Enforcement at the same address; the Director, 
Office of Enforcement, U.S. Nuclear Regulatory Commission, Attn: 
Document Control Desk, Washington, DC 20555; the Regional 
Administrator, NRC Region IV, 611 Ryan Plaza Drive, suite 400, 
Arlington, Texas, 76011-8064; and to the Licensee. If such a person 
requests a hearing, that person shall set forth with particularity the 
manner in which his interest is adversely affected by this Order and 
shall address the criteria set forth in 10 CFR 2.714(d).
    If a person whose interest is adversely affected requests a 
hearing, the Commission will issue an Order designating the time and 
place of any hearing. If a hearing is held, the issue to be considered 
at such hearing shall be whether this Confirmatory Order should be 
sustained.
    In the absence of any request for hearing, this Order shall be 
final and effective 20 days from the date of this Order without further 
order or proceedings. An answer or request for hearing does not stay 
the immediate effectiveness of this Order.

VI

    In addition to issuance of this Order modifying License No. 35-
12400-03, the Commission requires further information from the Licensee 
in order to determine whether the licensee has taken all reasonable 
actions to dispose of its sealed source. Accordingly, pursuant to 
section 161c, 161o, 182 and 186 of the Atomic Energy Act of 1954, as 
amended, and 10 CFR 2.204 and 30.32(b), in order for the Commission to 
determine whether your license should be further modified or other 
enforcement action taken to ensure compliance with NRC regulatory 
requirements, the Licensee is required to submit to the Chief, Nuclear 
Materials Licensing Section, Division of Radiation Safety and 
Safeguards, NRC Region IV, 611 Ryan Plaza Drive, suite 400, Arlington, 
TX, 76011-8064, within 45 days of the date of this Confirmatory Order 
and Demand for Information, the following information, in writing and 
under oath or affirmation:
    1. A detailed, written description of all efforts made to dispose 
of or transfer the sealed source; and
    2. For each case where a person was found that was authorized to 
receive the sealed source and would accept it for a fee, provide the 
following:
    A. An estimate of the total cost of transferring the sealed source 
and the basis for the estimate, including the license number and 
identity of the person who would perform the transfer (if known), and 
the license number and identity of the authorized recipient; and
    B. The reasons why the Licensee has not transferred the source.
    Copies shall also be sent to the Director, Division of Industrial & 
Medical Nuclear Safety, Office of Nuclear Material Safety & Safeguards, 
U.S. Nuclear Regulatory Commission, Washington, DC 20555; the Assistant 
General Counsel for Hearings and Enforcement at the same address, and 
to the Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, 
suite 400, Arlington, Texas, 76011-8064.
    After reviewing your response, the NRC will determine whether 
further action is necessary to ensure compliance with regulatory 
requirements.

    Dated at Rockville, Maryland this 15th day of March 1994.

Appendix: Modified License.

    For the Nuclear Regulatory Commission.
Robert M. Bernero,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 94-6643 Filed 3-21-94; 8:45 am]
BILLING CODE 7590-01-M