[Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
[Notices]
[Pages 16588-16591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8772]


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NUCLEAR REGULATORY COMMISSION

[Docket No: 030-17711, License No: 52-19438-01, EA 98-108]


In the Matter of NDT Services, Inc., Caguas, Puerto Rico; Order 
Suspending License (Effective Immediately)

I

    NDT Services, Inc. (Licensee or NDTS) is the holder of Material 
License No. 52-19438-01 (License) issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR Part 30. The License 
authorizes possession and use of up to 100 curies of Iridium 192 in 
each sealed radiography source and up to 20 curies of Cobalt 60 in each 
sealed radiography source for performing industrial radiography. The 
License was originally issued on August 21, 1980, was most recently 
amended on December 12, 1995, and is due to expire on January 31, 2002.

II

    On August 6 and October 4, 1997, the NRC Region II staff performed 
inspections at the Licensee's facility and a temporary job site at the 
Puerto Rico Electric Power Authority's San Juan Power Station. The 
inspections determined that the Licensee had not conducted its 
activities in accordance with NRC requirements. On November 7, 1997, 
the NRC issued Inspection Report No. 52-19438-01/97-01 and Notice of 
Violation (Notice) citing the Licensee for five violations identified 
during the inspections. Briefly summarized, the violations involved the 
Licensee's: (1) use of a set of Operating and Emergency Procedures that 
were not evaluated or approved by the NRC; (2) certification of 
individuals as radiographers who had not received required training; 
(3) failure to conduct surveys or continuous monitoring where a source 
was being exposed; (4) failure of an assistant radiographer to recharge 
his pocket dosimeter at the beginning of his shift; based upon the 
inspector's observation and the assistant radiographer's statement to 
the inspector that he usually recharged his dosimeter when it reached a 
reading of about 50 millirem and that he was unaware of the requirement 
to recharge the dosimeter at the beginning of each shift; and (5) 
failure to provide hazardous materials transportation training to its 
employees. In an unsigned and undated written response, which was sent 
by facsimile to the NRC on December 5, 1997, the Licensee responded to 
the Notice. As a result of NRC questions concerning the Licensee's 
response, the Licensee submitted a second signed but undated response 
to the NRC, which was received by the NRC on March 17, 1998. In its 
second response, the Licensee did not contest four of the violations; 
however, with regard to the hazardous materials training violation, the 
Licensee disputed the violation.
    On August 26, 1997, the NRC Office of Investigations (OI) initiated 
an investigation to determine whether the Licensee and any of its 
employees had willfully violated NRC requirements. In addition, on 
February 6, 1998, the NRC inspected the Licensee's activities at a 
temporary job site, Puerto Rico Power Authority's Costa Sur Power 
Station. The OI investigation of these matters is still ongoing. 
Nonetheless, based on the February 6, 1998 inspection and the OI 
evidence to date, the following violations, in addition to the 
violations

[[Page 16589]]

described in the November 7, 1997 Notice, have been identified to date:
    A. On February 6, 1998, the Licensee failed during two separate 
source exposures at the Costa Sur Power Station to conduct operations 
so that the dose in any unrestricted area did not exceed 2 millirem in 
any one hour, as required by 10 CFR 20.1301(a)(2). Specifically, during 
the first exposure the Licensee performed radiography operations in a 
manner that created a dose in an unrestricted area of 22 millirems in 
an hour based on a radiation field of 73 millirems per hour (mR/hr) 
during an 18-minute exposure. Following identification of this example 
by the NRC inspector, the NRC inspector reminded the Licensee 
radiographer of the NRC requirements to survey and monitor areas 
surrounding the radiography area to ensure that radiation areas in 
unrestricted areas were not inadvertently created or that members of 
the public were not being unnecessarily exposed to radiation. However, 
approximately 30 minutes after the inspector's reminder, the Licensee 
radiographer again performed radiography such that a dose was created 
in another unrestricted area of 6 millirems in an hour based on a 
radiation field of 19 mR/hr during an 18-minute exposure. The 19 mR/hr 
radiation level was confirmed by the Licensee radiographer using two 
survey meters.
    B. On February 6, 1998, the Licensee failed during two separate 
source exposures (described in Paragraph II.A of this Order) to perform 
adequate surveys and continuous monitoring, as required by License 
Condition No. 21 (which requires the Licensee to comply with Section 
6.3.1 of its application dated October 25, 1991). Specifically, during 
these source exposures, no surveys or continuous monitoring were 
conducted on levels above or below the level where radiography was 
being conducted to ensure that radiation levels were within permissible 
limits and that no one was being inadvertently exposed to radiation. 
The failure to perform adequate surveys and continuous monitoring is a 
repeat of a violation identified during the August and October 1997 
inspections.
    C. On February 6, 1998, the Licensee failed during two separate 
source exposures to post radiation areas, as required by 10 CFR 
20.1902(a). Specifically, during these source exposures, the Licensee 
radiographer failed to post the radiation areas described in Paragraphs 
II.A and II.B of this Order. In addition, notwithstanding the 
inspector's reminder of the need to post radiation areas, during the 
second source exposure, the radiographer did not comply with 10 CFR 
20.1902(a) in that the radiographer continued to perform radiography 
activities (i.e., the second source exposure) without posting the 
radiation area.
    D. On February 6, 1998, the Licensee failed to control the 
restricted areas that are described in Paragraphs II.A and II.B of this 
Order, as required by License Condition 21 (which requires the Licensee 
to comply with Sections 6.1.1 and 6.4 of its application of October 25, 
1991). Specifically, during the inspection, a non-licensee employee of 
the Costa Sur Power Station, a member of the public, indicated he had 
observed the radiographic operations while standing within the 
radiation areas that should have been posted.
    E. Transcribed sworn statements by one or more individuals indicate 
that, on multiple occasions between 1994 and 1997, the Licensee allowed 
multiple individuals to work as radiographers when the individuals 
failed to meet the training requirements, as required by License 
Condition 12 ( which requires that licensed material be used by or 
under the supervision and in the physical presence of trained 
individuals).
    F. Transcribed sworn statements by one or more individuals indicate 
that, on multiple occasions in 1994 and 1995, the Licensee permitted 
assistant radiographers to conduct radiographic operations without 
wearing dosimetry, as required by 10 CFR 34.33 (the requirement in 
effect at the time of occurrence), and that, in 1995, Licensee 
employees who retrieved a disconnected source at the Phillips Chemical 
Company facility in Guayama, Puerto Rico, intentionally removed their 
dosimetry and thereby failed to comply with 10 CFR 34.33.
    G. Transcribed sworn statements by one or more individuals indicate 
that, in 1995, the Licensee failed to report the source disconnect 
event that occurred at the Phillips facility, referenced in Paragraph 
II.F of this Order, as required by 10 CFR 34.30 (the requirement in 
effect at the time of occurrence).
    H. The Licensee failed to maintain, or provide to the NRC, complete 
and accurate information, contrary to 10 CFR 30.9. Specifically:
    1. A daily pocket dosimeter reading log, required to be maintained 
by 10 CFR 34.83(a) (the requirement in effect at time of occurrence), 
reflected that, prior to the beginning of the shift on October 4, 1997, 
a pocket dosimeter had been recharged when, in fact, it had not.
    2. The Licensee's undated responses to the November 7, 1997 Notice, 
which are described above, were inaccurate. Specifically, in response 
to the violation involving the failure of the assistant radiographer to 
recharge his pocket dosimeter at the beginning of his shift, the 
Licensee stated in both responses that the [assistant] radiographer 
``did not remember making the statement that he recharged his dosimeter 
when it reached about 50 mR or that he was unaware of the requirement 
to recharge the dosimeter at the beginning of each shift.'' This 
assertion was not correct in that the employee was directed to sign an 
internal document indicating that he did not recall making such 
statement, when he had made the statement.
    3. Training records required by 10 CFR 34.31(c) (the requirement in 
effect at time of occurrence) and License Condition 21 (which requires 
the Licensee to conduct classroom training in accordance with Section I 
of its application dated October 25, 1991), documented that two 
individuals had received 40 hours of radiation safety training on 
August 31, 1994, and January 10, 1995, respectively. However, the 
Licensee only gave the individuals NUREG BR-0024, ``Working Safely in 
Gamma Radiography,'' and asked them to read it.
    4. Radiation exposure records for calendar year 1995, required to 
be maintained by 10 CFR 20.2106(a), did not reflect actual doses 
received by Licensee employees who retrieved a disconnected source in 
1995 described in Paragraph II.F of this Order because the involved 
employees removed their dosimetry.
    I. Transcribed sworn statements by one or more individuals indicate 
that, on multiple occasions between 1994 and 1997, and with the 
knowledge of the Licensee's President/Radiation Safety Officer and the 
Assistant Radiation Safety Officer, Licensee radiographers allowed 
radiographers' assistants to conduct radiographic operations while 
unsupervised, in violation of 10 CFR 34.44 (the requirement in effect 
at the time of occurrence).
    J. Transcribed sworn statements by one or more individuals indicate 
that, on multiple occasions between 1994 and 1997, Licensee 
radiographers failed to stop work when Licensee employees' pocket 
dosimeters went off-scale, in violation of License Condition 21 (which 
requires the Licensee to meet Section 2.5.2 of its application dated 
October 25, 1991).

III

    In addition to the above, the Licensee's previous enforcement 
history is pertinent to this Order in that on July 16, 1996, the NRC 
issued to the Licensee

[[Page 16590]]

a Notice of Violation and Proposed Imposition of Civil Penalty (Notice) 
for numerous and significant violations (EA 94-029). This Notice 
included violations that directly resulted from the misconduct of the 
Licensee's former President and former Radiation Safety Officer (RSO), 
who willfully disregarded regulatory requirements, falsified documents, 
and provided inaccurate and incomplete information to the NRC in 
violation of 10 CFR 30.9. The Notice cited the Licensee for, among 
other things, failure to utilize personnel who were trained and 
qualified as radiographers in accordance with the requirements of 10 
CFR 34.31(a), providing false information to the NRC regarding the 
qualifications of two radiographers, and failure of two radiographers 
to wear alarming ratemeters during radiographic and source disconnect 
activities. In addition, on July 16, 1996, the NRC issued two 
individual Orders against the Licensee's former President and former 
RSO as a result of their deliberate misconduct. The Orders prohibited 
the former President and former RSO from engaging in any licensed 
activities for a period of five years. By letter dated August 15, 1996, 
the Licensee responded to the July 16, 1996 Notice. In its response, 
the Licensee admitted all of the violations. Among other things, it 
acknowledged that ``NDTS Company officials ignored NRC and company 
regulations and procedures,'' and outlined its corrective actions.
    Notwithstanding the Licensee's response to the July 16, 1996 Notice 
of Violation, the Licensee has again been either unwilling or unable to 
comply with numerous NRC requirements established to protect public 
health and safety. As described above, the Licensee has violated a 
number of NRC requirements which are extremely important to protecting 
public health and safety, including that of Licensee employees. 
Specifically, the Licensee allowed the conduct of radiographic 
operations by unsupervised, inadequately-trained radiographer's 
assistants, conducted operations such that the dose limits in 
controlled areas accessible to the public exceeded those specified in 
10 CFR 20.1301, failed to post or control radiation areas, failed to 
monitor or conduct surveys in areas where a source was being exposed, 
failed to report a source disconnect event as required by NRC 
regulations, and failed to maintain complete and accurate numerous 
required records. These violations have potential serious adverse 
consequences for public health and safety because they could directly 
cause unnecessary exposures and overexposures to the public and 
Licensee employees. Therefore, the violations are of very significant 
regulatory concern, irrespective of whether they resulted from willful 
misconduct on the part of the Licensee, particularly in view of the 
potential safety consequences inherent in not controlling radiographic 
work sites and failing to properly train or supervise radiographers. In 
addition, the fact that many of the violations which have been 
identified to date are either repetitive or appear to be the result of 
willful misconduct on the part of Licensee employees is of further 
significant concern to the NRC. In addition, the Commission must be 
able to rely on its licensees to provide complete and accurate 
information to the Commission to ensure protection of public health and 
safety.

IV

    Consequently, in light of the above, I lack the requisite 
reasonable assurance that the Licensee's current operations can be 
conducted under License No. 52-19438-01 in compliance with the 
Commission's requirements and that public health and safety, including 
the health and safety of Licensee employees, will be protected. 
Therefore, public health, safety, and interest require that License No. 
52-19438-01 be suspended pending further order by the NRC and that 
licensed material be placed in locked, safe storage. 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.

V

    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 and 10 CFR Part 30, it is hereby ordered, 
effective immediately, that:
    A. The authority to perform radiographic operations under License 
No. 52-19438-01 is hereby suspended pending further Order by the NRC. 
The Licensee shall cease all radiographic operations and return all 
byproduct material possessed under this license to locked, safe storage 
at the Licensee's facilities. All other requirements of the License and 
applicable Commission requirements, including those in 10 CFR Part 20, 
remain in effect.
    B. Within 24 hours following issuance of this Order, the Licensee 
shall contact Mr. Douglas M. Collins, Director, Division of Nuclear 
Materials Safety, NRC Region II, or his designee, through the NRC 
Operations Center at telephone number (301) 816-5100, and advise him of 
the current location, physical status, and storage arrangements of 
licensed material. A written response documenting this information 
shall be submitted, under oath or affirmation, to the Regional 
Administrator, NRC Region II, Atlanta Federal Center, 61 Forsyth 
Street, SW, Suite 23T85, Atlanta, Georgia 30303-3415 within seven days 
of receipt of this Order.
    C. If the Licensee removes licensed material from locked storage, 
the Licensee shall notify NRC Region II 48 hours before removal of the 
licensed material. The notice shall be provided to Mr. Douglas M. 
Collins, Director, Division of Nuclear Materials Safety, NRC Region II, 
or his designee, at telephone number (404) 562-4700.
    D. The Licensee shall not receive any NRC-licensed material while 
this Order is in effect.
    E. All records related to licensed activities shall be maintained 
in their current form and must not be altered in any way.
    The Regional Administrator, Region II, may, in writing, relax or 
rescind this order upon demonstration by the Licensee of good cause.

VI

    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. 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. 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 set forth the matters of fact and law on which the Licensee 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, Rulemakings Adjudications Staff, Washington, 
D.C. 20555. Copies also shall be sent to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 
20555, to the Deputy Assistant General Counsel

[[Page 16591]]

for Enforcement at the same address, and to the Regional Administrator, 
NRC Region II, Atlanta Federal Center, 61 Forsyth Street, SW, Suite 
23T85, Atlanta, Georgia 30303 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 
particularity 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, 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 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, or written approval of 
an extension of time in which to request 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. If an extension of 
time for requesting a hearing has been approved, the provisions 
specified in Section IV shall be final when the extension expires if a 
hearing request has not been received. AN ANSWER OR A REQUEST FOR 
HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF THIS ORDER.

    Dated at Rockville, Maryland this 27th day of March 1998.

    For the Nuclear Regulatory Commission.
Ashok C. Thadani,
Acting Deputy Executive Director for Regulatory Effectiveness.
[FR Doc. 98-8772 Filed 4-2-98; 8:45 am]
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