[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8847]


[[Page Unknown]]

[Federal Register: April 13, 1994]


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NUCLEAR REGULATORY COMMISSION
[IA 94-004]

 

Mr. Douglas D. Preston; Order Prohibiting Involvement in NRC-
Licensed Activities (Effective Immediately)

I

    Mr. Douglas D. Preston was employed by the Berry Construction 
Company at the Iowa Electric Light and Power Company's (IELPC or 
Licensee) Duane Arnold Energy Center where he was granted unescorted 
access. IELPC holds Facility License DPR-49, issued by the Nuclear 
Regulatory Commission (NRC or Commission) pursuant to 10 CFR part 50 on 
February 22, 1974. The license authorizes IELPC to operate the Duane 
Arnold Energy Center located near Cedar Rapids, Iowa, in accordance 
with the conditions specified therein.

II

    Mr. Preston first applied for employment with Berry Construction 
Company and was subsequently granted unescorted access to the Duane 
Arnold Energy Center on or about June 19, 1990, based in part on the 
representations he made on his access authorization applications. One 
of the representations was that he had not been arrested and convicted 
for any criminal offense other than minor traffic violations. The 
Licensee submitted fingerprint cards to the Federal Bureau of 
Investigations (FBI) and subsequently was informed that Mr. Preston had 
a record of arrests, convictions, and imprisonments prior to 1978. 
However, while waiting for the results of the FBI fingerprint check, 
Mr. Preston's employment at the Duane Arnold Energy Center was 
terminated for a lack of work. Mr. Preston's deliberate false 
statements on his access authorization application on or about June 19, 
1990 were essentially the same as his 1993 false statements (addressed 
below), but are not being cited in this Order as a violation because 
they were made before the effective date of 10 CFR 50.5.
    On June 21, 1993, Mr. Preston again applied for a position at the 
Duane Arnold Energy Center and was hired on June 21, 1993 by the Berry 
Construction Company as a laborer with responsibilities involving NRC-
licensed activities. On June 23, 1993, Mr. Preston filled out an access 
authorization application and again denied having a criminal history. 
The Licensee granted Mr. Preston temporary unescorted access to the 
plant on or about July 15, 1993. On or about August 13, 1993, the 
Licensee received the results of a second FBI fingerprint check which 
again detailed Mr. Preston's criminal history. Mr. Preston, when 
questioned by an IELPC investigator on August 13, at first denied 
having a criminal history and then admitted that he had lied about his 
criminal history to gain employment in 1990 and again in 1993. He 
further stated that he would lie again to gain employment in the 
future. The Licensee than revoked Mr. Preston's unescorted access based 
on the deliberately false information regarding his criminal history on 
his access authorization application.

III

    Based on the above Mr. Preston engaged in deliberate misconduct on 
or about June 23, 1993, by deliberately falsely stating on the access 
authorization application that he had no criminal history for crimes 
other than minor traffic offenses. The Commission's regulations in 10 
CFR 50.5, in part, prohibit any employee of a contractor of a licensee 
from literately submitting to the licensee information that the 
employee knows to be incomplete or inaccurate in some respect material 
to the NRC. Mr. Preston's actions constitute a violation of 10 CFR 
50.5(a). Information concerning criminal history is material to the 
determination the licensee must make to meet 10 CFR 73.56(b)(2).

IV

    The NRC must be able to rely on the Licensee, its contractors, and 
the licensee and contractor employees to comply with NRC requirements, 
including the requirement to provide information that is complete and 
accurate in all material respects. Mr. Preston's actions in 
deliberately providing false information to the Licensee constitute 
deliberate violations of Commission regulations and his statement to 
the Licensee that he would do it again have raised serious doubt as to 
whether he can be relied upon to comply with NRC requirements and to 
provide complete and accurate information to the NRC in the future.
    Consequently, I lack the requisite reasonable assurance that 
nuclear safety activities within NRC jurisdiction can be conducted in 
compliance with the Commission's requirements and that the health and 
safety of the public would be protected if Mr. Preston were permitted 
to be engaged in the performance of licensed activities. Therefore, the 
public health, safety and interest require that Mr. Preston be 
prohibited from being involved in the performance of activities 
licensed by the NRC for a five year period. In addition, Mr. Preston is 
required to notify the NRC, for an additional five year period, of his 
acceptance of employment in NRC-licensed activities so that appropriate 
inspections can be performed. Furthermore, pursuant to 10 CFR 2.202, I 
find that the significance of the deliberate misconduct described above 
is such that the public health, safety and interest require that this 
Order be immediately effective.

V

    Accordingly, pursuant to sections 103, 161b, 161i, 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 50.5, it is hereby ordered, 
effective immediately, that:
    A. Mr. Douglas D. Preston is prohibited from engaging in activities 
licensed by the NRC for five years from the date of this Order. For the 
purposes of this Order, licensed activities include the activities 
licensed or regulated by: (1) NRC; (2) an Agreement State, limited to 
the Licensee's conduct of activities within NRC jurisdiction pursuant 
to 10 CFR 150.20; and (3) an Agreement State where the licensee is 
involved in the distribution of products that are subject to NRC 
jurisdiction.
    B. After the five year prohibition has expired as described in 
paragraph A above, Mr. Preston shall provide notice to the Director, 
Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, 
DC 20555, for acceptance of any employment in licensed activity for an 
additional five year period.
    The Regional Administrator, Region III, may, in writing, relax or 
rescind any of the above conditions upon demonstration by Mr. Preston 
of good cause.

VI

    In accordance with 10 CFR 2.202, Mr. Preston must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order, and may request a hearing within 30 days of the date of this 
Order. The answer may consent to this Order. Unless the answer consents 
to this Order, the answer shall, in writing and under oath or 
affirmation, specifically admit or deny each allegation or charge made 
in this Order and shall set forth the matters of fact and law on which 
Mr. Preston or other person adversely affected relies and the reasons 
as to why the Order should not have been issued. Any answer or request 
for a hearing shall be submitted to the Secretary, U.S. Nuclear 
Regulatory Commission, ATTN: Chief, Docketing and Service Section, 
Washington, DC 20555. Copies also shall be sent to the Director, Office 
of Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 
20555, to the Assistant General Counsel for Hearings and Enforcement at 
the same address, to the Regional Administrator, Region III, U.S. 
Nuclear Regulatory Commission, 801 Warrenville Road, Lisle, Illinois 
60532-4351, and to Mr. Preston, if the answer or hearing request is by 
a person other than Mr. Preston. If a person other than Mr. Preston 
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 hearing is requested by Mr. Preston or a person whose interest 
is adversely affected, 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 Order should be 
sustained.
    Pursuant to 10 CFR 2.202(c)(2)(i), Mr. Preston, or any person 
adversely affected by this Order, may in addition to demanding a 
hearing, at the time that answer is filed or sooner, move the presiding 
officer to set aside the immediate effectiveness of the Order on the 
ground that the Order, including the need for immediate effectiveness, 
is not based on adequate evidence but on mere suspicion, unfounded 
allegations, or error.
    In the absence of any request for a hearing, the provisions 
specified in Section IV above shall be final 20 days from the date of 
this Order without further order or proceedings. An answer or a request 
for a hearing shall not stay the immediate effectiveness of this order.

    Dated at Rockville, Maryland this 5th day of April 1994.

    For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 94-8847 Filed 4-12-94; 8:45 am]
BILLING CODE 7590-01-M