[Federal Register Volume 59, Number 174 (Friday, September 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22246]


[[Page Unknown]]

[Federal Register: September 9, 1994]


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NUCLEAR REGULATORY COMMISSION
[IA 94-020]

 

In the Matter of: Paul A. Bauman; Order Requiring Notification 
Prior To Involvement in NRC-Licensed Activities (Effective Immediately)

I

    Paul A. Bauman has been employed in the field of industrial 
radiography since approximately 1981. In April 1987, Mr. Bauman was 
hired by the American Inspection Company, Inc., (Licensee or AMSPEC). 
AMSPEC held Materials License No. 12-24801-01 (License) issued by the 
Nuclear Regulatory Commission (NRC or Commission) pursuant to 10 CFR 
Parts 30 and 34. This license authorized the conduct of industrial 
radiography activities in accordance with specified conditions. On 
April 30, 1992, the License was suspended as a result of significant 
safety violations and related safety concerns. Mr. Bauman was a Vice 
President and Radiation Protection Officer of AMSPEC when a majority of 
the violations discussed below occurred.

II

    Between August 22, 1991 and November 12, 1992, the NRC Office of 
Investigations conducted an investigation of licensed activities at 
AMSPEC. During the course of this investigation, the License was 
suspended because a significant number of safety violations were 
uncovered. In addition, the investigation revealed that Mr. Bauman, in 
his capacity as a Vice President and Radiation Protection Officer of 
AMSPEC, deliberately:
    (1) Falsified employee training records of numerous radiography 
employees of AMSPEC;
    (2) Failed to train and certify numerous radiography employees of 
AMSPEC;
    (3) Provided examinees answers to examination questions and 
personally aided and assisted employees in order to achieve required 
test scores;
    (4) Provided, with co-conspirator Daniel McCool, false information 
to the Commission regarding the qualification of AMSPEC employees in an 
NRC license amendment application;
    (5) Falsified records of quarterly personnel radiation safety 
audits; and
    (6) Submitted false information regarding the training and 
qualification of two individuals to the Commission in an application 
for an NRC license renewal.
    10 CFR 34.31(a) provides that a licensee shall not permit any 
individual to act as a radiographer until such individual:
    (1) Has been instructed in the subjects outlined in Appendix A of 
10 CFR Part 34;
    (2) Has received copies of and instruction in NRC regulations 
contained in 10 CFR Part 34 and in the applicable sections of 10 CFR 
Parts 19 and 20, NRC license(s) under which the radiographer will 
perform radiography, and the licensee's operating and emergency 
procedures;
    (3) Has demonstrated competence to use the licensee's radiographic 
exposure devices, sealed sources, related handling tools, and survey 
instruments; and
    (4) Has demonstrated understanding of the instructions in this 
paragraph by successful completion of a written test and field 
examination on the subjects covered. AMSPEC submitted a Radiation 
Safety Manual as a part of its license application dated September 20, 
1986. A part of this manual prescribes the licensee's employee training 
program to satisfy the requirements of Appendix A of 10 CFR Part 34. 
This manual was incorporated as a part of License Condition 17 of the 
AMSPEC license. In addition, 10 CFR 34.11(d)(1) requires, in part, that 
an applicant have an inspection program that includes the observation 
of the performance of each radiographer and radiographer's assistant 
during an actual radiographic operation at intervals not to exceed 
three months. AMSPEC had an approved audit program that was 
incorporated as part of License Condition 17 to meet the requirements 
of 10 CFR 34.11(d)(1). 10 CFR 30.9(a) requires, in part, that 
information provided to the Commission by a licensee, or information 
required by the Commission's regulations to be maintained by the 
licensee, shall be complete and accurate in all material respects. 10 
CFR 30.10(a) requires, in part, that any licensee or any employee of a 
licensee may not:
    (1) Engage in deliberate misconduct that causes a licensee to be in 
violation of any rule, regulation, order, or term of any license, 
issued by the Commission, or
    (2) Deliberately submit to the NRC information that the person 
submitting the information knows to be incomplete or inaccurate in some 
respect material to the NRC.
    Between late 1989 and March 1, 1992, Mr. Bauman deliberately caused 
AMSPEC to violate 10 CFR 34.31 by failing to train and certify numerous 
radiography employees of AMSPEC as required and caused AMSPEC to 
violate 10 CFR 30.9 by deliberately falsifying training records to show 
that numerous employees of AMSPEC stationed at the Hess facility on St. 
Croix were properly trained in radiation safety. During 1990 and 1991, 
Mr. Bauman violated License Condition 17 by providing unauthorized and 
improper aid to AMSPEC employees taking radiation safety examinations 
in that Mr. Bauman:
    (1) Allowed the use of reference material during closed-book 
examinations;
    (2) Permitted examinees to complete examinations in an untimed, 
unmonitored setting; and
    (3) Directly provided the examinees with answers to test questions. 
In June of 1990, Mr. Bauman caused AMSPEC to violate 10 CFR 30.9 by 
preparing an NRC license amendment letter to the NRC that deliberately 
contained false information regarding the qualification of three AMSPEC 
employees. In July and August of 1991, Mr. Bauman caused AMSPEC to 
violate 10 CFR 30.9 and 10 CFR 34.11 by deliberately falsifying records 
of quarterly personnel radiation safety audits. In November of 1991, 
Mr. Bauman caused AMSPEC to violate 10 CFR 30.9 by conspiring with and 
directing his secretary to physically write answers on a required 
radiation safety test by annotating on the test the name of an AMSPEC 
employee and placing it in that employee's radiation safety records. 
Mr. Bauman violated 10 CFR 30.10 by deliberately submitting false 
information regarding the training and qualification of two individuals 
to the Commission in a December 20, 1991 application for an NRC license 
renewal.
    On December 17, 1992, Mr. Bauman pled guilty to two felony counts. 
The first count involved conspiracy to violate 42 U.S.C. 2273 (section 
223 of the Atomic Energy Act). The second count consisted of 
deliberately providing false information to the NRC in violation of 42 
U.S.C. 2273 and 42 U.S.C. 2201b (section 161b of the Atomic Energy Act) 
and 10 CFR 30.9 and 10 CFR 30.10(a)(2) of the Commission's regulations.

III

    The NRC must be able to rely on the Licensee and its employees to 
comply with NRC requirements, including the requirement to provide 
information and maintain records that are complete and accurate in all 
material respects. As a Vice President and Radiation Protection Officer 
(RPO) of AMSPEC, Mr. Bauman was responsible for ensuring that the 
Commission's regulations and License conditions were met and that 
records which were required to demonstrate compliance with the 
Commission's regulations and License conditions were true and accurate 
in all material aspects. Mr. Bauman's deliberate actions in causing the 
Licensee to violate 10 CFR 30.9, 34.11, and 34.31 and License Condition 
17, and his deliberate misrepresentations to the NRC, are unacceptable 
and raise a question as to whether he can be relied on at this time to 
comply with NRC requirements and to provide complete and accurate 
information to the NRC.
    Consequently, the NRC needs the capability to monitor his 
performance of licensed activities in order to be able to maintain the 
requisite reasonable assurance that licensed activities can be 
conducted in compliance with the Commission's requirements and that the 
health and safety of the public will be protected if Mr. Bauman is 
employed in NRC-licensed activities. Therefore, the public health, 
safety and interest require that for a period of three years from the 
date of this Order, Mr. Bauman shall notify the NRC of his employment 
by any person or entity engaged in NRC-licensed activities to ensure 
that the NRC can monitor the status of Mr. Bauman's compliance with the 
Commission's requirements and his understanding of his commitment to 
compliance. Furthermore, pursuant to 10 CFR 2.202, I find that the 
significance of the conduct described above is such that the public 
health, safety and interest require that this order be effective 
immediately.

IV

    Accordingly, pursuant to sections 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 30.10, and 10 CFR 150.20, it is 
hereby ordered, effective immediately, that:
    For a period of three years from the date of the Order, Paul A. 
Bauman shall: Within 20 days of his acceptance of each employment offer 
involving NRC-licensed activities or his becoming involved in NRC-
licensed activities, provide notice to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
of the name, address, and telephone number of the employer or the 
entity where he is, or will be, involved in the NRC-licensed 
activities. NRC-licensed activities are those activities which are 
conducted pursuant to a specific or general license issued by the NRC, 
including, but not limited to, those activities of Agreement State 
licensees conducted pursuant to the authority granted by 10 CFR 150.20. 
In the first notification Mr. Bauman shall include a statement of his 
commitment to compliance with regulatory requirements and the basis why 
the Commission should have confidence that he will now comply with 
applicable NRC requirements.
    The Director, Office of Enforcement, may, in writing, relax or 
rescind any of the above conditions upon demonstration by Mr. Bauman of 
good cause.

V

    In accordance with 10 CFR 2.202, Paul A. Bauman must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order, and may request a hearing on this Order, within 20 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. Bauman or any 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, NRC 
Region II, 101 Marietta Street NW., Suite 2900, Atlanta, GA 30323, and 
to Paul A. Bauman if the answer or hearing request is by a person other 
than Paul A. Bauman. If a person other than Paul A. Bauman requests a 
hearing, that person shall set forth with particularity the manner in 
which his or her 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 Paul A. Bauman or another 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), Paul A. Bauman, or any other 
person adversely affected by this Order, may, in addition to demanding 
a hearing, at the time the 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 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 
hearing shall not stay the immediate effectiveness of this order.

    Dated at Rockville, Maryland this 20th day of August 1994.

    For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 94-22246 Filed 9-8-94; 8:45 am]
BILLING CODE 7590-01-M