[Federal Register Volume 61, Number 5 (Monday, January 8, 1996)]
[Notices]
[Page 562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-212]



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NUCLEAR REGULATORY COMMISSION
[No. IA 95-058]


Five Star Products, Inc. and Construction Products Research 
Fairfield, Connecticut and H. Nash Babcock; Stipulation Between Nuclear 
Regulatory Commission and Five Star Products, Inc., Construction 
Products Research, Inc., and H. Nash Babcock

    Representatives of the Nuclear Regulatory Commission (``NRC'') and 
Five Star Products, Inc., Construction Products Research, Inc. (``the 
Companies''), and H. Nash Babcock have met and have decided to resolve 
this matter as addressed in this Stipulation as set out below.

Stipulation

    The NRC, the Companies, and H. Nash Babcock stipulate to the 
following:
    1. The Companies and H. Nash Babcock are free to sell commercial-
grade products to anyone in the nuclear industry, as they now do. 
``Commercial-grade'' is defined as in 10 CFR Part 21 of the 
Commission's regulations. Five Star Products' commercial-grade 
materials may be used in any safety-related applications provided that 
NRC licensees properly dedicate the materials for use as basic 
components and verify their suitability for the applications. As of the 
date of the settlement, NRC has not evaluated the quality of Five Star 
Products' materials, nor has the NRC received reports that Five Star 
Products' materials contain defects.
    2. The NRC hereby relaxes and modifies paragraph 1 and 2 of Section 
VI of the Order as follows:
    ``1. Until the Companies or H. Nash Babcock or any concern which is 
owned, controlled, operated or managed by H. Nash Babcock, satisfy the 
provisions of paragraph 2 below, they are prohibited from:
    A. providing or supplying structures, systems, or components, 
including grout and concrete, subject to a procurement contract 
specifying compliance with 10 C.F.R. Part 50 Appendix B; and
    B. providing or supplying basic components, including grout and 
concrete, subject to a procurement contract specifying that the 
contract is subject to the requirements of 10 CFR Part 21;
    2.A. If the Companies, or any concern owned, controlled, operated 
or managed by H. Nash Babcock, desire to lift the prohibitions 
specified in paragraph 1.A and 1.B, above, then the Companies, H. Nash 
Babcock, or the concern owned, controlled, operated, or managed by H. 
Nash Babcock, shall, at least 90 days prior to the date it desires to 
have the prohibition lifted:
    (1) Advise the NRC of that intent in writing;
    (2) Deleted.
    (3) Agree in writing, under oath or affirmation, and in fact, to 
permit the NRC, NRC licensees, and contractors performing QA functions 
for such licensees, to inspect the records, premises, basic components 
and activities of the Companies or of any concern owned, controlled, 
operated or managed by H. Nash Babcock that desires to provide safety-
related products or basic components, or to perform tests to support 
claims that those products or components and those testing services 
meet the standards of 10 CFR Part 50 Appendix B and 10 CFR Part 21, and 
to signify in writing a willingness to do so in the future;
    (4) Agree in writing under oath or affirmation to demonstrate and 
in fact to demonstrate that those basic components and services 
associated with basic components meet the standards of 10 CFR Part 50 
Appendix B by having tests performed by a mutually acceptable third 
party and having that third party provide copies of the results of 
those tests directly to the NRC; and
    (5) The officers, managers, and supervisors of the Companies 
provide statements that they understand that the activities and records 
of the organization are subject to NRC inspection and that 
communications with the NRC must be complete and accurate;
    B. When all conditions of paragraph 2.A above have been satisfied, 
and the NRC has conducted inspections of the QA program and Part 21 
program of the Companies or of any concern owned, controlled, operated, 
or managed by H. Nash Babcock, and any necessary corrective action has 
been completed, the prohibitions of paragraphs 1.A and 1.B, above, will 
be lifted in writing.''
    3. Except for the enforcement action reflected in the above-relaxed 
Order and this Stipulation, the NRC will neither impose, nor seek to 
impose, any sanction (other than as set forth in the relaxed Order and 
Stipulation) on the Companies or their officers and employees or H. 
Nash Babcock for the alleged violations described in the NRC Order 
issued on December 1, 1995.
    4. All matters involving the termination of employment of Mr. 
Edward P. Hollub are not covered by, or affected by, this Stipulation, 
the Stipulation is without prejudice to the parties' positions with 
respect to the Commission's jurisdiction or lack thereof over 
employment matters, and the NRC, the Companies, any other related 
company, and H. Nash Babcock retain all rights in any such case, 
matter, proceeding, or litigation now pending or which may hereinafter 
be instituted.
    5. In light of this Stipulation, the Companies and H. Nash Babcock 
agree not to request a hearing on the matters addressed in the Order 
issued on December 1, 1995 and relaxed as described herein, despite 
their vigorous disagreement with some of the allegations contained in 
the December 1, 1995 Order.
    6. The NRC, the Companies, and H. Nash Babcock agree that the 
allegations in the Order have not been made subject to an evidentiary 
hearing, and that this Stipulation will obviate the necessity for such 
a hearing, and they therefore agree that those allegations shall not 
estop any party from taking a different position on such matters in any 
other case, litigation, matter, or proceeding.
    7. The Order as relaxed herein shall be effective upon execution of 
this Stipulation. This Stipulation shall be published in the Federal 
Register.
    8. The persons signing below certify by their signatures that they 
have authority to sign this Stipulation for the entities appearing 
below their names.

    Dated: December 28, 1995.

For the United States Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission.
Washington, DC 20555-0001
(301) 415-2741
Michael F. McBride,
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
1875 Connecticut Avenue, NW.,
Suite 1200
Washington, DC 20009-5728
(202) 986-8000

Attorney for Five Star Products, Inc., Construction Products 
Research, Inc., and H. Nash Babcock.
[FR Doc. 96-212 Filed 1-5-96; 8:45 am]
BILLING CODE 7590-01-M