[Federal Register Volume 59, Number 153 (Wednesday, August 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19496]


[[Page Unknown]]

[Federal Register: August 10, 1994]


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NUCLEAR REGULATORY COMMISSION
[Docket No. 030-15075, License No. 20-05520-05 (Expired), EA 94-124]

 

Raymond Tarr, et al.; Order To Cease and Desist Use and 
Possession of Regulated Byproduct Material and Decommission Facility 
and Demand for Information

    In the matter of Mr. Raymond Tarr, Mr. Milton R. Hamilton, 
Omniwave Electronics Corporation, RCM Corporation, Cherokee 
Electronics Corporation, Gloucester, Massachusetts

I

    Mr. Raymond Tarr was President and Mr. Milton R. Hamilton was an 
authorized user and the Executive Vice-President of Omni-Wave 
Electronics Corporation (Licensee), the holder of expired Byproduct 
Materials License No. 20-05520-05 (License) issued by the Nuclear 
Regulatory Commission (NRC or Commission) pursuant to 10 CFR Part 30 on 
November 15, 1985. The License authorized the possession and use of 
cobalt-60 in any form, up to 10 millicuries, and krypton-85 in any 
form, up to 500 millicuries, in accordance with the conditions 
specified therein. The License expired on April 30, 1990.

II

    Since the expiration of the License, the byproduct material has 
remained at 22 Blackburn Drive, Gloucester, Massachusetts, 01930, in a 
building co-owned by Messrs. Tarr and Hamilton. It was represented to 
the NRC during a telephone conversation on August 20, 1992, between Mr. 
Milton Hamilton, Licensee, and Mr. Charles Amato, NRC, that there has 
been two successors of Omni-Wave Electronics, RCM Corporation and 
Cherokee Electronics Corporation. The Licensee did not submit an 
application for renewal of the License pursuant to 10 CFR 30.37 prior 
to its expiration, nor did the Licensee notify the Commission, in 
writing, pursuant to 10 CFR 30.36, of a decision not to renew the 
License. On January 27, 1992, the NRC, Region I, issued a Notice of 
Violation (NOV) to the RCM Corporation, ATTN: Mr. Milton Hamilton, as 
successor to the Licensee, for failure to request renewal, or to file a 
notice of non-renewal or transfer of the byproduct material, prior to 
expiration of the License. The letter forwarding the NOV directed RCM 
Corporation to place the radioactive material in its possession in 
secure storage until such time as it acquired an NRC license, and 
stated that no other use of that material or purchase of additional 
material was authorized. RCM Corporation applied for a possession 
license on March 19, 1992. However, in a telephone conversation with 
Mr. Charles G. Amato, Health Physicist, NRC, Region I, on July 29, 
1992, Mr. Hamilton stated that RCM Corporation was undergoing 
reorganization and requested that the application be withdrawn. In a 
letter dated August 3, 1992, the RCM Corporation withdrew its 
application for a possession license. As of this date, you Omni-Wave, 
RCM Corporation or Cherokee Electronics Corporation have not applied 
for, nor obtained, an NRC license.
    On August 11, 1993, the NRC, Region I, issued a Confirmatory Action 
Letter No. 1-93-004 (CAL) to Mr. Milton Hamilton of the Omni-Wave 
Electronics Corporation confirming the Licensee's commitment to develop 
and submit a decommissioning plan to the NRC Region I office by 
September 15, 1993, and that the decommissioning work be completed by 
November 15, 1993. The CAL also stated that Omni-Wave Electronics 
committed to prepare and transmit to the NRC by November 15, 1993, a 
report showing the disposition of radioactive material with copies of 
all shipping papers. On September 9, 1993, Mr. Hamilton requested an 
extension to the date stated in the CAL, in order to raise funds for 
the completion of the decommissioning. He stated that due to a very 
tight budget and the approximate cost for decommissioning, it was 
anticipated that the decommissioning would be accomplished within 30-45 
days. As of this date, a report has not been transmitted to NRC 
describing the decommissioning of the facility, nor have copies of 
shipping papers been submitted to the NRC showing the disposition of 
radioactive material.
    On June 15, 1994, the NRC conducted a special confirmatory safety 
inspection at 22 Blackburn Drive, Gloucester, Massachusetts. The 
inspection was performed to identify licensed material still in 
possession under an expired license and to assure that the material was 
in safe storage. The inspection included the pump room area of the 
facility, the manufacturing area, and the storage area used for 
licensed material. The NRC inspector identified cobalt-60 and krypton-
85 byproduct material, cobalt-60 contamination, and cobalt-60 waste, at 
the facility located at 22 Blackburn Drive, Gloucester, Massachusetts.

III

    Messrs. Tarr and Hamilton, as co-owners of the building at 22 
Blackburn Drive, Gloucester, Massachusetts, remain in possession of 
non-exempt radioactive material without a license. 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. Messrs. Tarr and Hamilton continue to possess the radioactive 
material contrary to Section 81 of the AEA and 10 CFR 30.3, without an 
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 circumstances surrounding Messrs. Tarr's and Hamilton's possession 
of the byproduct material and failure of Mr. Hamilton, whether acting 
on the behalf of the Licensee or RCM Corporation, as successor to the 
Licensee, or as an individual, to respond adequately to the NOV and 
CAL, I lack the requisite reasonable assurance that the health and 
safety of the public will be protected while Messrs. Tarr and Hamilton 
remain in possession of the radioactive material without the required 
NRC license.

IV

    Accordingly, in accordance with Sections 81 and 161b, i, and o of 
the Atomic Energy Act of 1954, as amended, and 10 CFR Parts 20 and 30 
the Commission's regulations, Messrs. Tarr and Hamilton must:
    A. Cease and desist from any further use of byproduct material now 
in their possession.
    B. Continue to maintain safe control over the byproduct material, 
by keeping the material in locked storage and no allowing any person 
access to the material, except for purposes of assuring the material's 
continued safe storage, until the material is transferred to a person 
authorized to receive and possess the material in accordance with the 
provisions of this Order and the Commission's regulations.
    C. Transfer the cobalt-60 and the krypton-85 byproduct material and 
all associated radioactively contaminated waste located at 22 Blackburn 
Drive, Gloucester, Massachusetts within 30 days to a person authorized 
to receive and possess the material.
    D. Decommission the facility within 60 days of the date of this 
Order and DFI and provide: (1) a notification of when decommissioning 
has been completed, and (2) a report providing the information required 
by 10 CFR 30.36 (c)(1)(v)(A) and (c)(1)(v)(B), appending to it the 
original and one copy of NRC Form-314, ``Disposition of Radioactive 
Material,'' with copies of all shipping papers. This 60 day period does 
not excuse the continuing violation of the requirements in 10 CFR 30.36 
to remove radioactive contamination, properly dispose of byproduct 
material, submit a completed form NRC-314, and conduct a radiation 
survey of the premises.

V

    In addition to issuance of this Order, the Commission requires 
further information from Messrs. Tarr and Hamilton in order to 
determine whether the Commission can have reasonable assurance that in 
the future, should Messrs. Tarr or Hamilton perform licensed activities 
under any other NRC license, Messrs. Tarr and Hamilton will conduct any 
activities in accordance with NRC requirements, and to determine 
whether enforcement action is warranted against Messrs. Tarr or 
Hamilton, as individuals.
    Accordingly, pursuant to sections 161c, 161o, and 182 of the Atomic 
Energy Act of 1954, as amended, and the Commissions's regulations in 10 
CFR 2.204, Messrs. Tarr and Hamilton are hereby required to submit, 
either jointly or separately, to the Director, Office of Enforcement, 
U.S. Nuclear Regulatory Commission, Washington, DC 20555, within the 
timeframe specified below, a statement in writing, under oath or 
affirmation, on the following information:
    1. Within 10 days of the date of this Order and DFI, inform the 
NRC, by letter, how each intends to comply with NRC requirements; in 
particular, how you intend to maintain safe control over the byproduct 
material prior to the transfer of the material to an authorized 
recipient.
    2. Within 15 days of the date of this Order and DFI, Messrs. Tarr 
and Hamilton shall provide a decommissioning plan for NRC review and 
approval, which will meet the applicable requirements of 10 CFR 30.36.
    3. Within seven days following transfer of the radioactive 
material, Messrs. Tarr and Hamilton shall provide: (1) confirmation 
that the cobalt-60 and the krypton-85 have been transferred; and (2) a 
copy of the certification from the authorized recipient that the 
byproduct material has been received.
    4. At least two working days prior to the date of the transfer of 
the byproduct material, Mr. Tarr or Mr. Hamilton shall notify Dr. 
Ronald Bellamy, Chief, Nuclear Materials Safety Branch, NRC, Region I, 
by telephone (610-337-5200) so that the NRC may, if it elects, observe 
the transfer of the material to the authorized recipient.
    5. Within 30 days of the date of this Order and DFI, if Messrs. 
Tarr and Mr. Hamilton believe they do not have sufficient funds to 
complete the transfer and decommissioning, they must provide specific 
evidence supporting such a claim by submitting: (1) an estimate of the 
cost of the transfer and decommissioning, and the basis for the 
estimate, including the license number and identity of the person who 
would perform the transfer and decommissioning; (2) written statements 
from at least two banks stating that Messrs. Tarr and Hamilton could 
not qualify for a loan to pay for the transfer of the byproduct 
materials and decommissioning of the facility; (3) copies of Federal 
income tax returns for the years ending 1993, 1992, 1991, and 1990, for 
both Messrs. Tarr and Hamilton; (4) copies of all Bankruptcy Court 
submittals for the Licensee, RCM Corporation and Cherokee Electronics 
Corporation; copies of all Bankruptcy Court decisions related to the 
above corporations; and copies of all correspondence between these 
corporations and the NRC related to the bankruptcy proceedings; and (5) 
a signed agreement to allow the NRC to receive Messrs. Tarr and 
Hamilton's credit information from a credit agency. A SUBMITTAL OF 
EVIDENCE SUPPORTING THE LACK OF SUFFICIENT FUNDS DOES NOT EXCUSE 
NONCOMPLIANCE WITH THIS ORDER.
    6. Within 30 days of the date of this Order and DFI provide:
    a. A list of all NRC licensees for whom Messrs. Tarr and Hamilton 
perform licensed activities, or with whom they are associated in any 
other capacity;
    b. A statement as to why the NRC should have confidence that 
Messrs. Tarr and Hamilton would comply with NRC requirements in the 
event that they perform licensed activities under another NRC license.
    c. A statement as to why, in light of the facts set forth above, 
the NRC should not issue an Order to both Messrs. Tarr and Hamilton, as 
individuals, prohibiting them from engaging in NRC-licensed activities.
    This information is needed to light of the continued violations of 
Commission requirements. Copies of the response to this Demand for 
Information also shall be sent to the Regional Administrator, Region I, 
475 Allendale Road, King of Prussia, Pennsylvania 19406, and to the 
Assistant General Counsel for Hearings and Enforcement, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555.
    After reviewing your response, the NRC will determine whether 
further action is necessary to ensure compliance with NRC requirements.

    Dated at Rockville, Maryland, this 2nd day of August 1994.

For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards, and 
Operations Support.
[FR Doc. 94-19496 Filed 8-9-94; 8:45 am]
BILLING CODE 7590-01-M