[Federal Register Volume 59, Number 225 (Wednesday, November 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28907]


[[Page Unknown]]

[Federal Register: November 23, 1994]


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NUCLEAR REGULATORY COMMISSION
[IA 94-033]

 

Jeffrey DeArmond; Order Prohibiting Involvement in NRC Licensed 
Activities (Effective Immediately)

I

    Amoco Oil Company (Amoco or Licensee) was the holder of Byproduct 
Material License No. 13-00155-10 issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR Parts 30 and 34. The 
license authorized the use of byproduct material (iridium-192 and 
cobalt-60) for industrial radiography in devices approved by the NRC or 
an Agreement State. The facility where licensed materials were 
authorized for use and storage was located at 2815 Indianapolis 
Boulevard, Whiting, Indiana. The use of licensed material was 
authorized at temporary job sites anywhere in the United States where 
the United States Nuclear Regulatory Commission maintains jurisdiction 
for regulating the use of licensed material. The License was originally 
issued on February 4, 1958, and was terminated on October 19, 1993.
    Mr. DeArmond performed duties as an Assistant Radiation Safety 
Officer (ARSO) for the Licensee until he was relieved of these duties 
on October 16, 1992.

II

    On July 27, 1992, the NRC Region III office received information 
that the Licensee's Radiation Safety Officer (RSO), had not conducted 
field audits of radiographers and radiographer's assistants as required 
by license conditions and that he fabricated reports for the audits 
that he did not perform by documenting that audits had been performed. 
The NRC conducted an inspection at the Licensee's Whiting, Indiana, 
refinery from September 15 to October 9, 1992. The NRC Office of 
Investigations (OI) subsequently conducted an investigation. The 
Licensee conducted an investigation contemporaneously with the NRC 
inspection and investigation. Deliberate violations of NRC requirements 
were identified as a result of the NRC inspection and the 
investigation.
    Condition 18.A of License No. 13-00155-10 incorporates the 
statements, representations, and procedures contained in the license 
application dated March 28, 1990. Item 10.3 of that application 
required, in part, that practicing radiographers and radiographer's 
assistants are to be audited at intervals not to exceed 3 months to 
meet the requirements of 10 CFR Part 34 and the Licensee's Operating 
and Emergency Procedures. Item 10.5 of that application required, in 
part, that certain records be generated and maintained, including a 
record of the quarterly audits of radiographers and radiographer's 
assistants.
    Testimony provided by Mr. DeArmond on November 5, 1992 indicated 
that at the request of the RSO on or about September 15, 1992, Mr. 
DeArmond falsified at least two records of audits of radiographers and 
radiographer's assistants for May 1992 by generating records for audits 
that were not performed. This is contrary to the audit requirements 
established by Item 10.3 and the record generation and maintenance 
requirements established by Item 10.5 of the license application 
incorporated into the License as Condition No. 18; and caused the 
License to be in violation of 10 CFR 30.9(a) and constituted a 
violation of 10 CFR 30.10(a) of the Commission's regulations.
    The Licensee conducted an internal investigation and based on the 
results of its investigation the Licensee suspended Mr. DeArmond's 
employment for two weeks without pay.

III

    Based on the above, it appears that Mr. DeArmond engaged in 
deliberate misconduct during September 1992, when at the request of the 
RSO, Mr. DeArmond created false field audit records of radiographers 
and radiographer's assistants for audits which had not been performed, 
thus making the record appear as though a field audit was performed at 
the specified interval. Mr. DeArmond's actions caused the Licensee to 
be in violation of Items 10.3 and 10.5 of the license application 
incorporated into the License as Condition No. 18 and 10 CFR 30.9, and 
constituted a violation of 10 CFR 30.10 of the Commission's 
regulations. As an ARSO, Mr. DeArmond supervised the radiation safety 
program associated with NRC Byproduct Material License No. 13-00155-10 
and Mr. DeArmond was responsible for ensuring that the Commission's 
regulations and license conditions were met.
    Consequently, I lack 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. DeArmond were permitted at this time to be 
involved in NRC-licensed activities. Therefore, the public health, 
safety and interest require that Mr. DeArmond be prohibited from any 
involvement in NRC-licensed activities for a period of one year from 
the date of this Order. Additionally, Mr. DeArmond is required to 
notify the NRC of his first employment in NRC-licensed activities 
licensed by the NRC following the prohibition period. Furthermore, 
pursuant to 10 CFR 2.202, I find that the significance of Mr. 
DeArmond's conduct described above is such that the public health, 
safety and interest require that this Order be immediately effective.

IV

    Accordingly, pursuant to sections 81, 161b, 161i, 161o, 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 34, it is 
hereby ordered, effective immediately, that:
    A. Jeffrey DeArmond is prohibited for one year from the date of 
this Order from engaging in NRC-licensed activities. NRC-licensed 
activities are those activities that 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.
    B. The first time Mr. DeArmond is employed in NRC-licensed 
activities following the one-year prohibition, he shall, within 20 days 
of his acceptance of the employment offer involving NRC-licensed 
activities, notify the Director, Office of Enforcement, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, and the Regional 
Administrator, NRC Region III. The notice shall include the name, 
address, and telephone number of the employer or the entity where he 
is, or will be, involved in the NRC-licensed activities. In the first 
notification, Mr. DeArmond 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. DeArmond 
of good cause.

V

    In accordance with 10 CFR 2.202, Mr. DeArmond must, and any other 
person adversely affected by this Order may submit an answer to this 
Order, and may request a hearing 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. DeArmond 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. DeArmond, if the answer or hearing request is by 
a person other than Mr. DeArmond. If a person other than Mr. DeArmond 
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 Mr. DeArmond 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. DeArmond, 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 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 hearing shall not stay the immediate effectiveness of this order.

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

    For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards and 
Operations Support.
[FR Doc. 94-28907 Filed 11-22-94; 8:45 am]
BILLING CODE 7590-01-M