[Federal Register Volume 60, Number 94 (Tuesday, May 16, 1995)]
[Notices]
[Pages 26056-26057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11988]



[[Page 26056]]

NUCLEAR REGULATORY COMMISSION

[Docket No. 030-20836 License No. 25-21479-01 EA 95-063]


Mattingly Testing Services, Inc. Great Falls, Montana; Order 
Modifying License (Effective Immediately)

    Mattingly Testing Services, Inc., (MTS or Licensee) is the holder 
of Byproduct Material License No. 25-21479-01 issued by the Nuclear 
Regulatory Commission (NRC or Commission) pursuant to 10 CFR parts 30 
and 34. The license authorizes the licensee to possess and utilize 
sealed sources of byproduct material in various radiographic exposure 
devices for the purpose of conducting industrial radiography. The 
license was due to expire on August 31, 1994, but has remained in 
effect based on the licensee's timely submission of a renewal 
application dated July 28, 1994.

II

    From January 4 to January 24, 1995, an NRC inspection and NRC 
investigation were conducted to determine compliance with radiation 
safety requirements and to determine whether licensee officials and 
employees had deliberately violated certain NRC requirements. As 
described in detail in NRC Inspection Report No. 030-20836/95-01, 
issued on February 28, 1995, the NRC staff found that MTS radiography 
personnel had violated a significant number of NRC requirements when 
performing radiography on a pipeline near Miles City, Montana. The 
inspection and preliminary investigation found, in part, that some of 
the violations were deliberate in that the President/Radiation Safety 
Officer and the Vice President/Assistant Radiation Safety Officer, knew 
that MTS personnel were violating NRC requirements and expressed the 
belief that work could be performed safely under the circumstances 
without meeting these requirements. The deliberate violations included, 
in part, not performing surveys as prescribed by 10 CFR 34.43(b), not 
posting radiography areas as required by 10 CFR 34.43, and not securing 
sealed sources in radiographic exposure devices as required by 10 CFR 
34.22(a).
    Further, the inspection and investigation found that MTS management 
deliberately allowed a newly hired assistant radiographer to begin 
working without meeting all of the NRC's training requirements in 
violation of 10 CFR 34.31(b), that an MTS radiographer had deliberately 
failed to supervise this assistant radiographer during radiography 
operations as required by 10 CFR 34.44, that MTS management had 
deliberately not completed all field audits of radiography personnel as 
required by 10 CFR 34.11(d)(1), and that MTS management had 
deliberately failed to amend its NRC license to reflect the 
establishment of a new office and storage location for NRC-licensed 
material in Billings, Montana as required by License Condition 17. 
These and other violations of NRC requirements, which were the subject 
of a March 7, 1995 transcribed enforcement conference at which MTS's 
President and Vice President admitted to the deliberate nature of the 
violations, are described in a Notice of Violation and Proposed 
Imposition of Civil Penalties-$15,500 issued concurrently with this 
Order.
    Based on the above, it appears that the Licensee has willfully 
violated NRC requirements. The NRC cannot tolerate a situation in which 
a licensee elects to violate requirements that are designed to assure 
the safety of both radiography personnel and unsuspecting members of 
the public. Collectively, these violations amount to a breakdown in the 
control of licensed activities and also demonstrate a lack of effective 
oversight of radiographic operations by the radiation safety officer 
and his assistant, all of which is made more significant by the 
deliberate nature of many of the violations.
    Consequently, without additional actions to monitor the performance 
of the Licensee, I lack the requisite reasonable assurance that the 
Licensee's current and future operations under License No. 25-21479-01 
will be conducted in compliance with the Commission's requirements and 
that the health and safety of the public, including the Licensee's 
employees, will be protected. Therefore, the public health, safety and 
interest require that License No. 25-21479-01 be modified to require 
that MTS retain the services of an independent auditor to conduct an 
initial audit of MTS's radiation safety program and to conduct 
semiannual audits for two years following the initial audit. 
Furthermore, pursuant to 10 CFR 2.202, I find that the significance of 
the violations and conduct described above is such that 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 and 10 CFR Parts 30 and 34, it is hereby 
ordered, effective immediately, that license no. 25-21479-01 is 
modified as follows:
    A. The Licensee shall retain the services of an independent 
individual or organization (consultant) to perform an initial 
assessment of the Licensee's radiation safety program and semiannual 
audits thereafter for a period of two years from the date of the 
initial audit such that a total of five (5) audits will be conducted.
    B. Within 30 days of the date of this Order, the Licensee shall 
submit to the Regional Administrator, NRC Region IV, for NRC review and 
approval, the name and qualifications of the consultant it proposes to 
use in conducting these audits and the general audit plan that complies 
with requirements set forth in Paragraphs IV.C, IV.D and IV.E. The 
consultant shall be independent of the Licensee's organization and 
shall be experienced, or qualified, in evaluating the effectiveness of 
the management and implementation of a radiation safety program for 
radiographic operations.
    C. Within 60 days of the date of NRC's approval of a consultant, 
the Licensee shall submit to the NRC Regional Administrator, Region IV, 
the results of the consultant's initial assessment. Thereafter, the 
Licensee shall assure that the consultant performs four (4) semiannual 
audits to be completed approximately every six months from the 
completion date of the initial audit. The Licensee shall submit the 
results of the four semiannual audits within 30 days of the date they 
are provided to the Licensee in writing. With the submission of each 
audit report, the Licensee shall describe any corrective actions it is 
taking in response to audit findings or recommendations.
    D. The initial audit shall: (1) Evaluate the effectiveness of the 
Licensee's management system for assuring compliance with all NRC 
requirements, including the adequacy of the Licensee's program for 
training radiography personnel and the adequacy of its radiography 
procedures; (2) evaluate the adequacy of the Licensee's corrective 
actions for the violations that were identified by the NRC in the 
Notice of Violation issued concurrently with this Order; (3) make 
recommendations as necessary for improvements in management oversight 
of licensed activities or corrective actions to comply with NRC 
requirements; and (4) include unannounced field audits (i.e., observe 
radiography operations) of at least 50 percent of Licensee personnel 
who are authorized at the time of the audit to be performing 
radiography, including personnel from both the Great Falls and Billings 
offices.
    E. At a minimum, each subsequent semiannual audit 
shall: [[Page 26057]] 
    1. Assess the effectiveness of the Licensee's corrective actions 
for previous audit findings as well as any violations identified by the 
NRC in subsequent inspections;
    2. Assess the overall effectiveness of the Licensee's management 
oversight of licensed activities to assure compliance with all NRC 
requirements;
    3. Make recommendations as necessary for improvements in management 
oversight or corrective actions to restore compliance with NRC 
requirements; and
    4. Perform unannounced field audits of at least 50 percent of the 
radiography personnel authorized to perform radiography at the time of 
the audit, including some personnel from both the Great Falls and 
Billings offices.
    The Regional Administrator, Region IV, may, in writing, relax or 
rescind this order upon demonstration by the Licensee of good cause.

V

    In accordance with 10 CFR 2.202, the Licensee 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 of affirmation, specifically admit or deny each allegation or 
charge made in this order and set forth the matters of fact and law on 
which the Licensee or other person adversely 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, 
D.C. 20555. Copies of hearing request also should be sent to the 
Director, Office of the Enforcement, U.S. Nuclear Regulatory 
Commission, Washington, D.C. 20555, to the Assistant General Counsel 
for Hearings and Enforcement at the same address, to the Regional 
Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 400, 
Arlington, Texas 76011, and to the Licensee if the hearing request is 
by a person other than the Licensee. If a person other than the 
Licensee requests a hearing, that person shall set forth with 
particularly 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 the Licensee 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), the Licensee, 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 5th day of May 1995.

    For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards and 
Operations Support.
[FR Doc. 95-11988 Filed 5-15-95; 8:45 am]
BILLING CODE 7590-01-M