[Federal Register Volume 61, Number 154 (Thursday, August 8, 1996)]
[Notices]
[Pages 41430-41431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20213]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 150-00004 License No. CA 2799-80 EA 96-065]


Industrial Marine Testing Laboratories, Inc.; Order Imposing 
Civil Monetary Penalty

I

    Industrial Marine Testing Laboratories, Inc. (Industrial Marine or 
Licensee) is the holder of Radioactive Materials License No. CA 2799-80 
issued by the state of California, an Agreement State, on December 27, 
1993. The license authorizes the Licensee to possess and use sealed 
radioactive sources in conducting industrial radiography at specific 
locations in San Diego, California and at temporary jobsites in areas 
not under exclusive federal jurisdiction throughout the state of 
California in accordance with the conditions specified therein. 
Pursuant to NRC practice, the Licensee may conduct the same activities 
in areas under NRC jurisdiction provided that the NRC is notified and 
the provisions of 10 CFR 150.20 are followed. Otherwise, an NRC license 
is required for such activities in accordance with the requirements of 
10 CFR 30.3.

II

    An inspection and investigation of the Licensee's activities was 
conducted during June 13, 1995, through February 15, 1996. The results 
of the inspection and investigation indicated that the Licensee had not 
conducted its activities in full compliance with NRC requirements. A 
written Notice of Violation and Proposed Imposition of Civil Penalty 
(Notice) was served upon the Licensee by letter dated June 6, 1996. The 
Notice stated the nature of the violation, the provision of the NRC's 
requirements that the Licensee had violated, and the amount of the 
civil penalty proposed for the violation.
    The Licensee responded to the Notice in a letter dated July 1, 
1996. In its response, the Licensee admitted the

[[Page 41431]]

violation but requested further mitigation of the civil penalty, 
asserting that imposition of the civil penalty would hurt Industrial 
Marine financially.

III

    After consideration of the Licensee's response and the statements 
of fact, explanation, and argument for mitigation contained therein, 
the NRC staff has determined, as set forth in the Appendix to this 
Order, that the violation occurred as stated and that the penalty 
proposed for the violation designated in the Notice should be imposed.

IV

    In view of the foregoing and pursuant to Section 234 of the Atomic 
Energy Act of 1954, as amended (Act), 42 U.S.C. 2282, and 10 CFR 2.205, 
it is hereby ordered that:

    The Licensee pay a civil penalty in the amount of $1,500 within 
30 days of the date of this Order, by check, draft, money order, or 
electronic transfer, payable to the Treasurer of the United States 
and mailed to Mr. James Lieberman, Director, Office of Enforcement, 
U.S. Nuclear Regulatory Commission, One White Flint North, 11555 
Rockville Pike, Rockville, MD 20852-2738.

V

    The Licensee may request a hearing within 30 days of the date of 
this Order. Where good cause is shown, consideration will be given to 
extending the time to request a hearing. A request for extension of 
time must be made in writing to the Director, Office of Enforcement, 
U.S. Nuclear Regulatory Commission Washington, D.C. 20555, and include 
a statement of good cause for the extension. A request for a hearing 
should be clearly marked as a ``Request for an Enforcement Hearing'' 
and shall be addressed to the Director, Office of Enforcement, U.S. 
Nuclear Regulatory Commission Washington, D.C. 20555, with a copy to 
the Commission's Document Control Desk, Washington, D.C. 20555. Copies 
also shall be sent to the Assistant General Counsel for Hearings and 
Enforcement at the same address and to the Regional Administrator, NRC 
Region IV, 611 Ryan Plaza Drive, Suite 400, Arlington, Texas 76011.
    If a hearing is requested, the Commission will issue an Order 
designating the time and place of the hearing. If the Licensee fails to 
request a hearing within 30 days of the date of this Order (or if 
written approval of an extension of time in which to request a hearing 
has not been granted), the provisions of this Order shall be effective 
without further proceedings. If payment has not been made by that time, 
the matter may be referred to the Attorney General for collection.
    In the event the Licensee requests a hearing as provided above, the 
issues to be considered at such hearing shall be:

    Whether on the basis of the violation admitted by the Licensee, 
this Order should be sustained.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland this 31st day of July 1996.
Joseph R. Gray,
Acting Director, Office of Enforcement.

Appendix

Evaluation and Conclusion

    On June 6, 1996, a Notice of Violation and Proposed Imposition 
of Civil Penalty (Notice) was issued for a violation identified 
during an NRC inspection and investigation. Industrial Marine 
Testing Laboratories, Inc. (Industrial Marine or Licensee) responded 
to the Notice on July 1, 1996. The licensee admitted the violation 
but requested mitigation on grounds that the imposition of the civil 
penalty would hurt the company financially. The NRC's evaluation and 
conclusion regarding the licensee's requests are as follows:

Summary of Licensee's Request for Mitigation

    In its July 1, 1996, ``Answer to a Notice of Violation,'' the 
Licensee stated that it is a very small business and that although 
the NRC has already taken that into consideration, the imposition of 
the proposed civil penalty in the amount of $1,500 would hurt the 
company financially. The Licensee did not want to imply that the NRC 
was being unfair in arriving at the amount, but noted that it was 
financial duress that helped to create the problem.

NRC Evaluation of Licensee's Request for Mitigation

    The base civil penalty for the uncontested Severity Level III 
violation is $5,000. However, considering the circumstances, 
including the fact that Industrial Marine is a small business, the 
NRC exercised discretion and reduced the civil penalty to $1,500. 
The reduced civil penalty is roughly equivalent to the fees the 
Licensee would have paid to remain in compliance.
    In cases such as this, an NRC enforcement action is used as a 
deterrent to emphasize the importance of compliance with 
requirements. In this regard, further reduction of the penalty would 
do little to emphasize the importance of compliance with the 
involved requirements.
    However, NRC's Enforcement Policy also provides, ``... it is not 
the NRC's intention that the economic impact of a civil penalty be 
so severe that it puts a licensee out of business (orders, rather 
than civil penalties, are used when the intent is to suspend or 
terminate licensed activities) or adversely affects a licensee's 
ability to safely conduct licensed activities.''
    Therefore, to balance these considerations and to be responsive 
to the potential financial hardship to the licensee, rather than 
mitigating the civil penalty the licensee should be permitted to pay 
it in monthly installments.

NRC Conclusion

    The NRC has concluded that the violation occurred as stated and 
that Industrial Marine did not provide an adequate basis for further 
reduction of the civil penalty. Consequently, the proposed civil 
penalty in the amount of $1,500 should be imposed. However, to be 
responsive to the potential for further financial hardship, the NRC 
should permit Industrial Marine to pay the civil penalty in monthly 
installments.

[FR Doc. 96-20213 Filed 8-8-96; 8:45 am]
BILLING CODE 7590-01-P