[Federal Register Volume 64, Number 26 (Tuesday, February 9, 1999)]
[Notices]
[Pages 6384-6386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3095]


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NUCLEAR REGULATORY COMMISSION

[IA 98-061]


Randall W. Allmon; Confirmatory Order Prohibiting Involvement in 
NRC-Licensed Activities (Effective Immediately)

I

    Randall W. Allmon is employed by March Metalfab, Inc. (MMI) as a 
Project Manager. MMI is a subcontractor of Sierra Nuclear Corporation 
(SNC), which holds NRC Certificate of Compliance 72-1007 for the VSC-24 
cask, used by general licensees, Palisades Nuclear Plant (PNP) and 
Arkansas Nuclear One (ANO). The general license (10 CFR 72.210) relied 
on by PNP and ANO is for the storage of spent nuclear fuel under 10 CFR 
Part 72.

[[Page 6385]]

II

    In March 1995, PNP loaded spent fuel into a multi-assembly sealed 
basket (MSB) spent fuel cask that had been supplied by SNC and 
fabricated by MMI. When the cask was pressurized with helium, two leaks 
were identified in the wall of the MSB adjacent to the closure weld. 
Subsequent analysis by PNP metallurgical personnel determined that the 
defects were caused by underbead or hydrogen cracking, resulting from a 
base metal weld repair to the MSB shell inner wall that was performed 
during MSB manufacturing. The NRC staff learned of the problem 
experienced by PNP as a result of inspection activities following a 
similar closure weld failure at ANO. The staff became concerned that 
undetected cracks in other MSBs, produced by SNC that were already 
loaded with spent fuel, could propagate while the casks were in 
storage, affecting the integrity of the cask confinement boundary. As a 
result, during the week of March 17-21, 1997, a special inspection was 
conducted at SNC and MMI.
    During the special inspection, five MMI employees who were 
considered most likely to have been aware of the fabrication activities 
during the manufacture of the MSBs that failed were interviewed. In his 
interview at this time, regarding temporary attachments and weld 
repairs, Mr. Allmon stated that there was no reason to use temporary 
attachments and the only weld repairs would be those for repair of 
lifting clamp marks and the lifting clamp area was within approximately 
the first 2.5 inches from the top of the cask. Mr. Allmon stated that 
no welding was done on the inside of the top area of the MSB where the 
``tear'' occurred during the closure welding at PNP.
    In July 1997, the NRC conducted a further inspection of MMI and 
SNC. During that inspection, employees of both companies acknowledged 
that undocumented welds had been made on casks sold to ANO and PNP. In 
the course of this inspection, both Mr. Allmon, the Project Manager and 
the Quality Assurance Manager for MMI admitted that they were aware 
that repair welding had been performed on the inside of the MSBs during 
fabrication and that they had not informed the NRC inspectors of those 
welds during the March 1997 inspection interviews. The NRC continued to 
investigate the matter and the Office of Investigations issued its 
report on October 16, 1998.
    The NRC has concluded that because Mr. Allmon was knowledgeable 
about the fabrication process and was aware that welding had been done 
on the insides of the MSBs, he deliberately made statements in March 
1997 to SNC and to the NRC that were inaccurate concerning the internal 
welding. The information involved was material to the NRC's 
understanding as to the quality of the MSBs and delayed the NRC's 
action to ensure integrity of MSBs. As a result, the NRC has further 
concluded that in providing the information, Mr. Allmon violated 10 CFR 
72.11, ``Completeness and Accuracy of Information'' and 10 CFR 72.12, 
``Deliberate Misconduct.'' The NRC believes that the circumstances of 
this matter raise questions as to Mr. Allmon's willingness to comply 
with Commission requirements. Mr. Allmon has not admitted that a 
violation occurred.

III

    In a telephone call on December 7, 1998, Mr. Allmon agreed to 
issuance of a Confirmatory Order prohibiting him from engaging in NRC-
licensed activities for a period of five years from the date that the 
Order is issued. The staff believes that this will adequately protect 
the public heath and safety and, therefore, finds this acceptable. MMI 
and Mr. Allmon requested that if the Order is issued, they be allowed 
to complete work on one small existing contract to supply 10 plug 
assemblies for a NUHOMS cask. This provision is acceptable, as the 
assemblies have a limited safety function that can be verified by 
measurement at the time of use. On January 6, 1999, the staff forwarded 
to Mr. Allmon a copy of the factual basis of the proposed order and the 
implementation paragraph. On January 11, 1999, Mr. Allmon consented to 
the issuance of the order with those provisions and waived his rights 
to a hearing on this action.
    I find that Mr. Allmon'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 Mr. Allmon's commitments be confirmed by this Order. Based on the 
above and Mr. Allmon's consent to this action, this Order is 
immediately effective upon issuance.

IV

    Accordingly, pursuant to sections 53, 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, 10 CFR part 72, and 10 CFR 72.12, it is 
hereby ordered, effective immediately, as follows:
    A. Except as noted in paragraph B, Mr. Allmon is prohibited for 
five years from the date of this Order from any involvement in NRC-
licensed activities. For purposes of this Order, licensed activities 
include providing or supplying, whether directly to NRC licensees or 
Certificate of Compliance holders, or as a contractor or subcontractor 
to a licensee or Certificate of Compliance holder, structures, systems, 
or components, subject to a procurement contract specifying compliance 
with 10 CFR Ch. I.
    B. Mr. Allmon may complete work on the contract that MMI entered 
into prior to the date of this order to fabricate a total of 10 plug 
assemblies for a NUHOMS cask.
    The Director, Office of Enforcement, may relax or rescind, in 
writing, any of the above conditions upon a showing by Mr. Allmon of 
good cause.

V

    Any person adversely affected by this Confirmatory Order, other 
than Mr. Allmon, 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 Deputy Assistant 
General Counsel for Enforcement, and to the Director, Office of Nuclear 
Materials Safety and Safeguards, at the same address, and to Sierra 
Nuclear Corporation. If such a person requests a hearing, that person 
shall set forth with particularity the manner in which his or her 
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

[[Page 6386]]

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.

    Dated this 27th day of January 1999.

    For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 99-3095 Filed 2-8-99; 8:45 am]
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