[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18848]


[[Page Unknown]]

[Federal Register: August 3, 1994]


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NUCLEAR REGULATORY COMMISSION
[Docket No. 150-00003; License No. ARK-740-BP-1-94; EA 94-138]

 

Otho Jones (DBA Jones Inspection Services), Alderson Oklahoma; 
Order to Cease and Desist Use and Possession of Regulated Byproduct 
Material in NRC Jurisdiction (Effective Immediately)

I

    Jones Inspection Services is the holder of Radioactive Material 
License ARK-740-BP-1-94 issued by the state of Arkansas, an NRC 
Agreement State. The license authorizes Jones Inspection Services to 
possess and use sealed radioactive sources in various radiographic 
exposure devices at temporary job sites in the state of Arkansas. 10 
CFR 150.20 of the NRC's regulations grants a general license to 
Agreement State licensees to conduct the same activities in non-
Agreement States provided that the NRC is notified and the other 
provisions of 10 CFR 150.20 are followed.

II

    On July 14, 1994, an NRC investigation was conducted to determine 
whether Jones Inspection Services was using regulated byproduct 
material in NRC jurisdiction without NRC authorization. Based on 
interviews with Otho G. Jones, the sole proprietor of Jones Inspection 
Services, and on documents obtained from the Central Oklahoma Oil and 
Gas Company, the investigation confirmed that Jones Inspection 
Services, which does not hold an NRC license, had illegally used and 
possessed regulated byproduct material in Oklahoma, a non-Agreement 
State in which the NRC maintains regulatory authority over such 
material. The NRC's investigation determined that Jones Inspection 
Services stored radiographic exposure devices in Oklahoma from at least 
January 1, 1994, to July 1994, and that these devices has been used to 
perform industrial radiography in Oklahoma from April 1, 1994, to June 
27, 1994 for Central Oklahoma Oil and Gas Company. The investigation 
also determined that these activities were conducted without NRC 
authorization. Specifically, the investigation found that Jones 
Inspection Services did not hold an NRC license as required by 10 CFR 
30.3 and that Otho Jones did not notify the NRC, in accordance with the 
provisions of 10 CFR 150.20, that he planned to conduct radiography at 
temporary job sites in NRC jurisdiction.\1\ Thus, these activities were 
not subject to inspection by the NRC to assure the protection of the 
public health and safety.
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    \1\The NRC notes that Otho Jones' previous company, Tumbleweed 
X-Ray Company, was prohibited by Order from conducting licensed 
activities in non-Agreement States until September 6, 1994. Thus, 
had Mr. Jones notified the NRC of his intent to conduct radiography 
activities in Oklahoma in early 1994, it is unlikely that the NRC 
would have authorized those activities.
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    In a signed statement Mr. Jones provided the NRC investigator, he 
said he did not know he had to notify the NRC and did not know to whom 
the information should be provided. However, Mr. Jones also said ``I 
did think to call the NRC about reciprocity, but I am afraid of the NRC 
and did not want me more hassel [sic] so I chose not to call them about 
working in Oklahoma.'' Furthersome, as indicated in the footnote, Mr. 
Jones was the sole proprietor of Tumbleweed X-Ray Company in September 
1991 when that company was issued an NRC order specifically suspending 
its authority to conduct radiography activities in Oklahoma and other 
states in which NRC maintained regulatory authority.
    On July 21, 1994, the NRC issued a Confirmatory Action Letter (CAL 
4-94-70) which described voluntary commitments made by Mr. Jones to 
discontinue the use of three radiographic exposure devices in his 
possession and to transfer the devices to authorized recipients or 
authorized locations. Mr. Jones informed NRC Region IV personnel on the 
same date that he had already transferred two devices to an NRC 
licensee in the state of Oklahoma and was preparing to ship a third 
device to the manufacturer.

III

    Based on the above, it appears that Otho G. Jones, the sole 
proprietor of Jones Inspection Services, he willfully violated NRC 
requirements and, notwithstanding his voluntary actions to transfer 
three radiographic exposure devices, was and may continue to be in 
violation of NRC requirements by possessing regulated byproduct 
material in NRC jurisdiction without authorization, i.e., without 
either an NRC license or a general license authorizing the use of this 
material in the state of Oklahoma. This is prohibited by section 81 of 
the Atomic Energy Act (AEA) of 1954, as amended, and by 10 CFR 30.3, 
which state that, (except for persons exempt as provided in 10 CFR 
parts 30 and 150), no person shall possess or use byproduct material 
except as authorized in a specific or general NRC license.
    Improper handling of the byproduct material can result in 
unnecessary exposure to radiation. The Atomic Energy Act and the 
Commission's regulations require that the possession of licensed 
material be under a regulated system of licensing and inspection. Given 
the current circumstances surrounding Mr. Jones' possession of the 
byproduct material and the facts associated with Mr. Jones' former 
company (i.e., Tumbleweed X-Ray Company) to whom Mr. Jones was the sole 
proprietor in 1991 and to which an NRC order was issued suspending its 
authority to conduct radiography activities in Oklahoma and other 
states, Mr. Jones has not demonstrated that he will comply with NRC 
requirements.
    Consequently, it appears that Mr. Jones is either unwilling or 
unable to comply with NRC requirements and without Mr. Jones having an 
NRC license, I lack the requisite reasonable assurance that the health 
and safety of the public will be protected. Therefore, the public 
health, safety, and interest require that Otho Jones and Jones 
Inspection Services be required to cease and desist unauthorized 
possession of regulated byproduct material and to provide certification 
to the NRC that all regulated byproduct material has been transferred 
to authorized recipients or authorized locations. Furthermore, pursuant 
to 10 CFR 2.202, I find that the significance of the violation 
described above is such that the public health, safety, and interest 
require that this Order be immediately effective.

 IV

    Accordlingly pursuant to section 81, 161b, 161i, 182 and 186 of the 
Atomic Energy Act of 1954, as amended, and the Commission's regulations 
in 10 CFR 2.202, 10 CFR part 30 and 10 CFR part 150, it is hereby 
ordered, effective immediately, that Otho G. Jones shall:
    A. For all regulated byproduct material that remains in his 
possession in Oklahoma or other states where the NRC maintains 
jurisdiction effective from the date of this Order;
    (1) Immediately cease and desist the use of all such material in 
non-Agreement States within NRC jurisdiction;
    (2) Immediately place all such material that is currently in states 
within NRC jurisdiction in safe, locked storage pending transfer;
    (3) Within five days of the date of this Order, complete the 
transfer of all such material to an authorized recipient or to an 
authorized location outside of NRC jurisdiction.
    (4) Notify Ms. Linda Kasner, Chief of Nuclear Materials Inspection 
Branch, NRC Region IV, at telephone number 817-860-8213, of the above 
arrangements no later than one day prior to the actual transfer of this 
material.
    B. For all regulated byproduct material that is transferred in 
accordance with the above terms, and all material that was transferred 
between July 14, 1994, and the date of this Order:
    1. Within 10 days of the date of this Order, certify in writing to 
the NRC Regional Administrator, Region IV at the address in B.2 below, 
under oath or affirmation, that such material was transferred, and 
provide documentation showing the date of transfer and the recipient of 
the material; and
    2. The certification required in B.1 above must be sent to the 
Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 400, 
Arlington, Texas 76011.
    C. Mr. Jones shall cease and desist from possession and use of 
regulated byproduct material in NRC jurisdiction unless authorized in 
accordance with 10 CFR 30.3 or 10 CFR 150.20.
    The Regional Administrator, Region IV, may, in writing, relax or 
rescind this order upon demonstration by the Licensee of good cause.

    Dated at Rockville, Maryland this 26th day of July 1994.

    For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards, and 
Operations Support.
[FR Doc. 94-18848 Filed 8-2-94; 8:45 am]
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