[Federal Register Volume 64, Number 21 (Tuesday, February 2, 1999)]
[Notices]
[Pages 5079-5080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2421]



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NUCLEAR REGULATORY COMMISSION

[Docket No. 030-34318, License No. 06-30361-01, EA 98-521]


Special Testing Laboratories, Inc., P.O. Box 200, Bethel, 
Connecticut 06801-0200; Confirmatory Order Modifying License and 
Rescinding Order of December 23, 1998 (Effective Immediately)

I

    Special Testing Laboratories, Inc. (Special Testing or Licensee) is 
the holder of Byproduct Nuclear Material License No. 06-30361-01 
(License) issued by the Nuclear Regulatory Commission (NRC or 
Commission) pursuant to 10 CFR Part 30. The License authorizes 
possession and use of Troxler Electronics Laboratories, Campbell 
Pacific Nuclear, Humbolt Scientific, Seamen Nuclear, or Soiltest 
nuclear gauges. Mr. Richard A. Speciale (Mr. Speciale) is the President 
and Radiation Safety Officer of Special Testing Laboratories. The 
License was issued on August 6, 1997, and is due to expire on August 
31, 2007. However, by Order Suspending License dated December 23, 1998, 
the License was suspended by the NRC for violations of the Commission's 
requirements as described therein.

II

    By Letter dated December 23, 1998, the Licensee requested an 
enforcement hearing and moved to set aside the immediate effectiveness 
of the Order Suspending License. Further, during several telephone 
conversations with the NRC between December 23, 1998 and January 8, 
1999, the Licensee requested that the Order Suspending License be 
relaxed. By a letter dated December 31, 1998, Mr. Richard A. Speciale, 
the Licensee's Director and Radiation Safety Officer, voluntarily 
relinquished his position of Radiation Safety Officer to Mr. Richard C. 
Speciale, the Licensee's current President, and committed not to speak 
to or direct Licensee employees involved in NRC-licensed activities. In 
a letter dated January 4, 1999, Mr. Richard C. Speciale informed the 
NRC that he understood the License requirements, that he would comply 
with the License requirements, and that audits would be performed by an 
auditor independent of the Licensee.
    Based on the Licensee's commitments and the circumstances in this 
case, the NRC has concluded that the Order Suspending License may be 
rescinded provided that a series of conditions, as described in Section 
IV below, are agreed upon and implemented by the Licensee. By letter 
dated January 8, 1999, the NRC sent the Licensee a list of the specific 
conditions and formally requested the Licensee's consent to confirming 
the commitments through an Order. On January 11, 1999, the Licensee, by 
its Director, Richard A. Speciale, and its President, Richard C. 
Speciale, signed and returned its consent to issuance of this Order 
agreeing that: (1) its request for a hearing on the Order Suspending 
License be withdrawn; (2) the conditions, as described in Section IV 
below, be incorporated into the License; (3) this Order be immediately 
effective; (4) its right to a hearing on this Order be waived; and (5) 
nothing in this Order shall preclude the NRC from taking further 
enforcement action against the Licensee and/or Richard A. Speciale as 
an individual, upon completion of the ongoing NRC investigation.

III

    Implementation of the commitments will provide assurance that 
sufficient resources will be applied to the radiation safety program, 
and that the program will be conducted safely and in accordance with 
NRC requirements. I find that the Licensee's commitments as set forth 
in Section IV are acceptable and necessary and conclude that with these 
commitments the public health and safety are reasonably assured. In 
view of the foregoing, I have determined that the public health and 
safety require that the Licensee's commitments be confirmed by this 
Order and that the NRC's Order Suspending License be rescinded. Based 
on the above and the Licensee's consent, this Order is immediately 
effective upon issuance.

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 Part 2.202, It is hereby 
ordered, effective immediately, that license no. 06-30361-01 is 
modified as follows:
    A. The NRC's Order Suspending License dated December 23, 1998, 
shall be rescinded.
    B. Mr. Richard C. Speciale shall replace Mr. Richard A. Speciale as 
the Licensee's Radiation Safety Officer. As evidence of this Licensee 
management change, the Licensee shall provide the NRC with written 
documentation, as follows:
    1. A delegation of authority from Mr. Richard A. Speciale to Mr. 
Richard C. Speciale, which states that Mr. Richard C. Speciale has the 
requisite and unqualified authority to communicate with, and direct, 
Licensee employees regarding NRC regulations and License provisions and 
to enforce these requirements, including the ability to terminate any 
unsafe operation involving the use of NRC-licensed material or 
activities that violate the License or NRC requirements.
    2. A directive to all current employees that they are not to look 
for or take direction from Mr. Richard A. Speciale regarding NRC-
licensed activities, and that any and all direction is to be provided 
solely by Richard C. Speciale. Within 7 days of providing the 
directive, the Licensee shall confirm that all current employees have 
received the directive.
    3. A signed statement as to how Mr. Richard A. Speciale will 
effectively be removed from control of NRC-licensed activities, 
including his agreement to refrain from any efforts to direct, control 
or influence in any way and to any extent, directly or indirectly, the 
conduct of licensed activities.
    4. A signed statement, under oath or affirmation, from Mr. Richard 
C. Speciale certifying that:
    a. He will direct NRC-licensed operations independent from any 
involvement or interference by Mr. Richard A. Speciale;
    b. He understands the License conditions and all NRC requirements 
relating to the License, including the NRC's deliberate misconduct 
rule;
    c. He understands that the NRC expects meticulous compliance with 
its requirements; and
    d. He intends to comply with License conditions and all NRC 
requirements in every respect.
    5. A signed statement describing how Mr. Richard C. Speciale will 
inform all gauge users of NRC and License requirements and direct them 
to comply with such requirements. Within 7 days of providing the signed 
statement, the Licensee will confirm that Richard C. Speciale has so 
informed and directed all employees.
    C. The Licensee shall notify the NRC immediately if Mr. Richard A. 
Speciale attempts to influence Mr. Richard C. Speciale or any other 
Licensee employee in the conduct of NRC-licensed activities.
    D. The Licensee shall fully cooperate with the NRC with regard to 
inspection or investigation of NRC-licensed activities, including the 
provision of complete and accurate records and responding to the NRC 
Office of Investigations subpoena dated November 18, 1998. In addition, 
all records related to licensed activities shall be maintained in their 
original

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form and shall not be removed or altered in any way.
    E. The Licensee shall retain the services of an independent 
individual or organization (consultant) to perform eight quarterly 
audits of the Licensee's radiation safety program. After conducting 
four audits, the Regional Administrator, NRC Region I, may consider, at 
the request of the Licensee, relief of the audit requirements based on 
Licensee performance. The consultant shall be independent of the 
Licensee's organization and is to be experienced in, or capable of, 
evaluating the effectiveness of management and the implementation of a 
radiation safety program for gauging operations. NRC has approved the 
use of Q/C Resource as a consultant; however, if the Licensee chooses 
to change the consultant, the Licensee shall notify the NRC seven days 
in advance of a change. At a minimum, each audit shall:
    1. Evaluate the effectiveness of the Licensee's radiation safety 
program and compliance with NRC requirements;
    2. Evaluate the understanding of the Licensee's Radiation Safety 
Officer of radiation safety and NRC requirements;
    3. Evaluate the adequacy of the Licensee's corrective actions for 
any violations or audit findings previously identified by the NRC or 
consultant;
    4. Make recommendations as necessary for improvements in management 
oversight of NRC-licensed activities;
    5. Physically observe gauging operations in the field; and
    6. Evaluate whether Mr. Richard A. Speciale is or has been involved 
in NRC-licensed activities since the effective date of this Order.
    F. Within 7 days of the date of this Confirmatory Order, the 
Licensee shall provide a copy of this Order to the consultant, to all 
current, and, for the duration of these commitments, to all future 
Licensee employees.
    G. Within 30 days of the date of this Confirmatory Order, the first 
audit shall be completed. The Licensee shall ensure that the consultant 
submits the results of the audit, including any deficiencies 
identified, to NRC Region I at the same time the consultant provides 
the results to the Licensee.
    H. Within every three months thereafter, an audit shall be 
completed. The Licensee shall ensure that the consultant submits the 
results of the audit, including any deficiencies identified, to NRC 
Region I at the same time the consultant provides the results to the 
Licensee.
    I. Within 30 days of the completion of each audit, the Licensee 
shall submit to NRC Region I its corrective actions for any identified 
deficiencies in the audit reports. Alternatively, if the Licensee does 
not believe that corrective actions should be taken, the Licensee shall 
provide justification for its position to the NRC.
    J. For purposes of the above conditions, the Licensee shall send 
all documents, and provide notifications and confirmations, required by 
this modification to the Director, Division of Nuclear Material Safety, 
NRC Region I, 475 Allendale Road, King of Prussia, PA 19406-1415.
    K. The Regional Administrator, Region I, may relax the above 
conditions for good cause.

V

    Nothing in this Order will be deemed to preclude the NRC from 
taking further enforcement action against the Licensee and/or Richard 
A. Speciale as an individual, upon the completion of the ongoing NRC 
investigation. In addition, if the Deputy Executive Director for 
Regulatory Effectiveness concludes that a substantial breach of any 
conditions of the Confirmatory Order has occurred, the NRC may issue an 
Order Suspending License.

VI

    Any person adversely affected by this Confirmatory Order, other 
than the Licensee, may request a hearing within 20 days of its 
issuance. 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, DC 20555, and include a 
statement of good cause for the extension. Any request for a hearing 
shall be submitted to the Secretary, U.S. Nuclear Regulatory 
Commission, ATTN: Rulemakings and Adjudications Staff, Washington, DC 
20555. Copies also shall be sent to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
to the Associate General Counsel for Hearings, Enforcement, and 
Administrations at the same address, to the Regional Administrator, NRC 
Region I, 475 Allendale Road, King of Prussia, PA 19406-1415, and to 
the Licensee. If such a person 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 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 Confirmatory Order should be 
sustained.
    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 this 22nd day of January, 1999.

    For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 99-2421 Filed 2-1-99; 8:45 am]
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