[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Proposed Rules]
[Pages 19089-19095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9746]


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NUCLEAR REGULATORY COMMISSION

10 CFR Part 39

RIN 3150-AG14


Energy Compensation Sources for Well Logging and Other Regulatory 
Clarifications

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to amend 
its regulations governing licenses and radiation safety requirements 
for well logging. The proposed rule would modify NRC regulations 
dealing with: low activity energy compensation sources; tritium neutron 
generator target sources; specific abandonment procedures in the event 
of an immediate threat; changes to requirements for inadvertent 
intrusion on an abandoned source; the codification of an existing 
generic exemption; the removal of an obsolete date; and updating 
regulations to be consistent with the Commission's metrication policy. 
The proposed amendments are necessary to reflect developments that have 
occurred in well logging technology since the existing regulations were 
adopted.

DATES: The comment period expires July 5, 1999. Comments received after 
this date will be considered if it is practical to do so, but the 
Commission is able to assure consideration only for comments received 
on or before this date.

ADDRESSES: Send comments by mail or addressed to the Secretary, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001. Attention: 
Rulemakings and Adjudications Staff.
    Hand-deliver comments to: 11555 Rockville Pike, Rockville, 
Maryland, between 7:30 am and 4:15 pm on Federal workdays.
    You may also provide comments via the NRC's interactive rulemaking 
web site through the NRC home page (http://www.nrc.gov). From the NRC 
home page, select ``Rulemaking'' from the tool bar. The interactive 
rulemaking website can then be accessed by selecting ``Rulemaking 
Forum.'' This site provides the availability to upload comments as 
files (any format), if your web browser supports that function. For 
information about the interactive rulemaking site, contact Ms. Carol 
Gallagher, (301) 415-5905; e-mail [email protected].
    Certain documents related to this rulemaking, including comments 
received and the environmental assessment and finding of no significant 
impact, may be examined at the NRC Public Document Room, 2120 L Street 
NW., (Lower Level), Washington, DC. These same documents also may be 
viewed and downloaded electronically via the interactive rulemaking 
website established by NRC for this rulemaking.

FOR FURTHER INFORMATION CONTACT: Mark Haisfield, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, telephone (301) 415-6196, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: The Nuclear Regulatory Commission is 
proposing to amend its regulations to acknowledge and accommodate the 
use of well logging technology that has been developed since the NRC 
issued the current well logging regulations (March 17, 1987; 52 FR 
8234). This new technology allows licensees to lower a logging tool 
down a well at the same time that the hole for the well is being 
drilled instead of requiring drilling to stop, removing drilling 
pieces, and lowering a logging tool down the well. This technology is 
commonly referred to as ``logging while drilling.'' This process uses a 
relatively small radioactive source within the logging tool in addition 
to the larger radioactive sources currently used in logging a well. The 
existing regulations were based on the use of larger radioactive 
sources. These regulations include provisions which are unnecessary and 
potentially burdensome for the additional small sources. The proposed 
changes would have no significant impact on public health and safety 
and the environment while reducing potential burdens to licensees. 
Licensees would no longer need to comply with unnecessary regulatory 
requirements for these small sources or to request licensing exemptions 
from the NRC for actions dealing with these small sources. Other 
changes are also being proposed to improve, clarify, and update well 
logging regulations to reduce confusion. These changes may also reduce 
the need for licensees to request exemptions from unnecessary 
requirements.

Introduction

    Oil and gas come from accumulations in the pore spaces of reservoir 
rocks (usually sandstone, limestone, or dolomites) and are removed via 
a well. Because the amount of oil and gas in these pore spaces is 
dependent upon the rock's characteristics, the oil and gas industry 
often needs to determine the characteristics of underground formations 
to predict the commercial viability of a new or existing well.

[[Page 19090]]

Licensed radioactive materials are used to obtain information on 
certain properties of an underground formation, such as type of rock, 
porosity, hydrocarbon content, and density. These properties are 
important in the evaluation of oil and gas reservoirs.
    One method to obtain information about oil and gas reservoirs is by 
using well logging tools. Licensed radioactive materials (sealed 
radioactive sources with associated radiation detectors) are contained 
in well logging tools. Americium-241 and cesium-137 are the radioactive 
materials most frequently used for this purpose. Traditionally, these 
tools are lowered into a well on a wireline. The depth of the well 
could range from several hundred feet to greater than 30,000 feet. 
Information collected by the detectors is sent to the surface through 
the wireline and plotted on a chart as the logging tool is slowly 
raised from the bottom of the well. Licensed radioactive materials are 
also used for similar purposes in coal and mineral exploration.
    The licensing and radiation safety requirements for well logging 
are provided in 10 CFR part 39. When the regulations for well logging 
were promulgated in 1987 (52 FR 8225, March 17, 1987), the well logging 
process required drilling to stop while parts of the drilling pieces 
were removed before lowering a logging tool down a well. More recent 
technology, referred to as logging while drilling (LWD), allows well 
logging to be accomplished during drilling. This technology employs an 
additional low activity radioactive source within the well logging tool 
known as an energy compensation source, or ECS. The ECS is used to 
calibrate the well logging tool while the well is being drilled.
    LWD provides real time data during drilling operations. It has also 
provided the ability for improved evaluation of geologic formations and 
can reduce drilling costs. The real-time information can aid in 
decision making because formation evaluation can be planned as soon as 
the drill bit reaches a formation.

Background

    Based on the changing technology in the well logging industry, the 
NRC developed a Rulemaking Plan to consider the need to update 10 CFR 
part 39. On May 28, 1997, the NRC provided a draft Rulemaking Plan 
entitled, ``Energy Compensation Sources for Well Logging and 
Clarifications--Changes to 10 CFR part 39'' to the Agreement States for 
their comment. The draft Rulemaking Plan was contained in SECY-97-111, 
also dated May 28, 1997. Comments were received from the States of 
Utah, Illinois, and Washington. These States generally supported the 
proposal and provided specific information and comments. Where 
appropriate, these comments were incorporated into the final Rulemaking 
Plan which was contained in SECY-98-105, dated May 12, 1998.
    In the final Rulemaking Plan, the NRC proposed to modify the 
existing regulations in 10 CFR part 39 to account for the newer 
technology. The changes would reduce regulatory burden on NRC and 
Agreement State licensees with no significant impact to public health 
and safety. In addition, there are other sections within 10 CFR part 39 
that should be changed to improve, clarify, and update the regulations. 
The final Rulemaking Plan provides the rationale used in the 
development of this proposed rule.

Proposed Regulatory Action

    The NRC is proposing seven specific changes to improve, clarify, 
and update the requirements in 10 CFR part 39.
    1. The principal objective of the proposed rulemaking is to amend 
10 CFR part 39 to accommodate the radioactive ECSs that are now used in 
some well logging applications. The ECS is a low activity source, 
typically less than 1.85 MBq (50 microcuries), compared to the normal 
110 GBq to 740 GBq (3 to 20 curies) sources used in well logging. 
Because this is an emerging technology, 10 CFR part 39, originally 
promulgated in 1987, does not provide any specific provisions for these 
low activity sources. Many of the requirements in 10 CFR part 39, when 
applied to an ECS, are not appropriate or necessary to protect public 
health and safety and the environment. Therefore, the NRC believes the 
regulations should be changed.
    Because the existing regulations do not allow for variations based 
on the activity of the source, licensees who use an ECS must meet all 
the requirements for larger sources found in 10 CFR part 39. Examples 
of requirements which are overly burdensome for licensees using ECSs 
include those addressing well abandonment (Secs. 39.15 and 39.77), leak 
testing (Sec. 39.35), design and performance criteria for sealed 
sources (Sec. 39.41), and monitoring of sources lodged in a well 
(Sec. 39.69). The NRC is proposing that only those sections dealing 
with leak testing (a proposed revised Sec. 39.35 specifically addresses 
ECSs), physical inventory (Sec. 39.37), and records of material use 
(Sec. 39.39) should apply to the use of an ECS.
    Oil and gas wells use a surface casing to protect fresh water 
aquifers. However, if a surface casing is not used, the NRC would 
retain the well abandonment requirements. Requirements established in 
other parts of NRC regulations (e.g., 10 CFR parts 20, 30, 40, and 70) 
would still apply to the possession and use of licensed material and 
are adequate to protect public health and safety and the environment.
    Therefore, the NRC is proposing to amend 10 CFR part 39 to 
accommodate the use of an ECS in well logging and to provide 
requirements governing its use. These provisions would include 
radioactivity limits on the ECS and leak testing requirements. The most 
significant change would exclude an ECS from the costly procedures for 
well abandonment in the event an ECS is lost within the well. Current 
requirements for well abandonment, in addition to specific reporting 
and approval requirements, require the source to be immobilized and 
sealed in place with a cement plug which must be protected from 
inadvertent intrusion, and the mounting of a permanent plaque at the 
surface of the well. In the draft Regulatory Analysis (RA) conducted 
for this proposed rule, a survey of ECS users indicated that about 
eight ECSs are abandoned per year. Although estimated abandonment costs 
varied significantly by survey respondent, the estimated savings to the 
industry to avoid eight abandonments per year is $5 million.
    The NRC is proposing to establish 3.7 MBq (100 microcuries) as the 
limit for an ECS. Current ECSs typically use up to 1.85 MBq (50 
microcuries) of americium-241 (cesium-137 sources are smaller). The 3.7 
MBq (100 microcuries) limit would allow licensees flexibility in 
designing new sources of this kind while maintaining their 
radioactivity within an environmentally safe level. In addition, the 
sources would be required to be registered pursuant to 10 CFR 32.210 as 
ECSs for use in well logging applications. These sources would not be 
required to meet the requirements in Sec. 39.41. However, they would be 
expected to meet the general requirements for calibration sources as 
established in American National Standard Institute (ANSI) standards.
    Because ECSs are used for logging oil and gas wells, they use 
surface casings to protect fresh water aquifers. Hence, the only 
potential exposure hazard these sources would present is to workers, 
and worker exposure could only occur if an ECS were ruptured. If 
ruptured, workers could be exposed to the radionuclide through 
ingestion or by absorption through the skin. However, if the source 
were ruptured, it would be contained within hundreds to thousands of 
cubic feet of drilling mud

[[Page 19091]]

which also contains hazardous chemicals and is controlled and monitored 
to protect workers as part of drilling operations.
    The draft Environmental Assessment (EA) conducted for this proposed 
rulemaking demonstrates that there would be no significant impact to 
public health and safety or the environment resulting from this 
amendment. The EA evaluated a worst case scenario of a 3.7 MBq (100 
microcuries) source ruptured by a drill bit and brought to the surface 
in the drilling mud. The most significant exposure from this scenario 
would be from ingestion of the drilling mud. The most dangerous 
radionuclide considered for this worst case scenario was curium-250. 
This radionuclide was used because the rule, as proposed, does not 
restrict the radionuclide used for ECS sources. Also, the scenario 
involved a source twice as large as any in current use. For this worst 
case scenario, the estimated dose would be about 56 millirem, which is 
below the Federal annual dose limit to an individual member of the 
public of 0.1 rem (100 millirem) or 1 millisievert (see 10 CFR 
20.1301). For a 3.7 MBq (100 microcuries) source of americium or cesium 
(the actual radionuclides used, but with larger activity) the estimated 
dose would be less than 3 millirem and 1 millirem respectively. 
Therefore, the NRC believes that eliminating potential costly 
requirements for these sources, in the event that such sources become 
unretrievable, would not impact public health and safety or the 
environment.
    Section 39.35 specifies leak testing requirements for sealed 
sources. Because of the small amount of radioactive material in an ECS 
(by definition less than 3.7 MBq (100 microcuries)) less specific leak 
testing requirements are being proposed for ECSs. Also, the ECS is 
contained within a logging tool that is designed to withstand 
significant stress and pressure. The ECS is mounted inside a steel 
pressure housing in the interior of the logging tool, thereby providing 
additional encapsulation to protect the ECS from operational impacts. 
The NRC believes that it is unnecessary and overly burdensome to 
require that drilling operations stop because an ECS has exceeded the 
current 6-month time interval requirement to be leak tested. The draft 
Regulatory Analysis conducted for this proposed rulemaking surveyed a 
sample of the drilling industry to determine a normal maintenance 
period at which time a licensee would take a logging tool out of 
service for routine maintenance or other servicing. The NRC believes 
this maintenance period would be an appropriate time to conduct any 
necessary leak testing on an ECS. Although the survey results varied, 
these tools generally receive some type of out-of-field servicing every 
18 months.
    Based on this information and the NRC's belief that ECSs should 
normally only be leak tested during normal maintenance or when a 
logging tool is out of service for other repairs, the NRC is requiring 
that a leak test be performed at a minimum of every three years. This 
requirement should not be a burden for licensees if the logging tool is 
being properly maintained and, in fact, should provide licensees some 
flexibility. This is also consistent with an extended leak test 
frequency that has been established by license conditions for certain 
other sealed sources and devices.
    Many ECSs are already exempt from all leak testing requirements. 
Section 39.35 exempts all beta or gamma emitting radioactive material 
with an activity of 3.7 MBq (100 microcuries) or less. Because cesium-
137 is a beta/gamma emitter, all of these types of ECSs are already 
exempt from the existing leak testing requirements in Sec. 39.35.
    2. The NRC is proposing to revise 10 CFR part 39 requirements for 
tritium neutron generator target sources. Tritium neutron generators 
help determine the porosity of the reservoir rock formation, which 
indicates the amount of liquid in the reservoir and the reservoir's 
permeability. Tritium neutron generator target sources are not used in 
logging while drilling tools. These sources are used in the more 
traditional well logging procedure where drilling is stopped and the 
tool is lowered downhole. Because tritium neutron generator target 
sources produce a significant neutron stream only when a voltage is 
applied, tritium neutron generator target sources are less hazardous 
than the typical americium or cesium sources currently being used in 
well logging applications.
    For well logging applications, the NRC is proposing that tritium 
neutron generator target sources be subject to the requirements of 10 
CFR part 39 except for the sealed source design and performance 
criteria (Sec. 39.41), and the well abandonment procedures (Secs. 39.15 
and 39.77) when a surface casing is used to protect fresh water 
aquifers, a practice that is standard for oil and gas wells. The 
potential hazard of these sources when a surface casing is used does 
not warrant the existing requirements for well abandonment in the event 
that the source becomes lost. The design and performance criteria 
associated with sealed sources for well logging were not intended for 
tritium neutron generator target sources. However, 10 CFR part 39 does 
not make this intent or distinction clear.
    The NRC is proposing to establish 1,110 GBq (30 curies) of tritium 
as the limit for a tritium neutron generator target source. Current 
tritium neutron generator target sources typically contain less than 
740 GBq (20 curies) of tritium. The 1,110 GBq (30 curies) limit would 
allow licensees flexibility in designing new sources of this type while 
maintaining their radioactivity within an environmentally safe level.
    When these sources are used for logging oil and gas wells, a 
surface casing is used to protect fresh water aquifers. The only 
exposure hazard these sources present are to workers and worker 
exposure could only occur if such sources were ruptured and the tritium 
was ingested. If a tritium source were ruptured, it would be contained 
within hundreds to thousands of cubic feet of drilling mud. As 
mentioned, this drilling mud contains hazardous chemicals and is 
controlled and monitored as part of drilling operations.
    The draft EA conducted for this proposed rulemaking demonstrates 
that there would be no significant impact to public health and safety 
or the environment resulting from this change. The draft EA evaluated 
the worst case scenario of a 1,110 GBq (30 curies) tritium source 
ruptured by a drill bit and brought to the surface in the drilling mud. 
The most significant exposure would be through ingestion of this 
drilling mud. For this worst case scenario, the estimated dose would be 
14 millirem, which is well below the Federal annual dose limit to an 
individual member of the public of 100 millirem or 1 millisievert (see 
10 CFR 20.1301). Therefore, the NRC believes that eliminating potential 
costly requirements for these sources, in the event that such sources 
become unretrievable, would not impact public health and safety or the 
environment.
    3. Section 39.77 provides the requirements for notification and 
procedures for abandoning irretrievable well logging sources. This 
section specifies that the NRC must approve implementation of 
abandonment procedures before abandonment. In some circumstances, such 
as high well pressures that could lead to fires or explosions, the 
delay required to notify NRC could cause an immediate threat to public 
health and safety. The NRC believes that this section should be 
modified to allow licensees to use their judgement to abandon a well 
immediately, without prior NRC approval, if the licensee believes a 
delay

[[Page 19092]]

could cause such a non-radiological threat. This modification would 
allow licensees greater procedural latitude. In the proposed rule, the 
language has been modified to allow licensees to notify the NRC and 
justify the need for an immediate abandonment after the fact.
    4. Section 39.15 provides requirements for abandoning irretrievable 
sealed sources. The NRC believes that this section should be modified 
to provide performance-based criteria for inadvertent intrusion on the 
source. This modification would allow licensees greater procedural 
latitude while continuing to ensure source integrity. The current 
requirements may be more restrictive than is necessary to protect an 
abandoned source, depending upon the individual well abandonment. For 
example, if a significant amount of drilling equipment is abandoned 
with the well, the equipment itself may be effective in preventing 
inadvertent intrusion on the source. However, the abandoned equipment 
would not meet the current requirements of Sec. 39.15. Paragraph 
(a)(5)(ii) of Sec. 39.15 has prescriptive requirements for 
irretrievable well logging sources, specifying the use of a mechanical 
device to prevent inadvertent intrusion on the source, at a specific 
location within the abandoned well.
    The NRC is proposing that licensees ``prevent inadvertent intrusion 
on the source.'' This would require that the source be protected but 
allow licensees the flexibility to determine the best method. The 
proposed change would not affect the requirement in Sec. 39.15(a)(5)(i) 
that a well logging source be immobilized with a cement plug or the 
requirement in Sec. 39.15(a)(5)(iii) that a permanent identification 
plaque be mounted at the surface of the well.
    5. Two changes are being proposed for Sec. 39.41, ``Design and 
performance criteria for sealed sources.'' The first would incorporate 
within NRC regulations an existing generic exemption for sealed sources 
that were manufactured before 1989 and met older standards. The second 
would add an optional acceptable standard by referencing oil-well 
logging requirements in ANSI/HPS N43.6-1997. The existing requirements 
would also remain as an option within this section.
    The NRC issued a generic exemption from the current design and 
performance criteria for sealed sources in 1989. This exemption allows 
the use of older sealed sources which were not tested against the 
current criteria, but which were tested in accordance with an earlier 
standard used for well logging sources. This exemption is currently in 
practice, but is not included in 10 CFR part 39. The NRC is proposing 
to modify the regulations to include this existing generic exemption 
within 10 CFR part 39.
    Sealed sources that were manufactured before July 14, 1989, may use 
design and performance criteria from the United States of America 
Standards Institute (USASI) N5.10-1968, ``Classification of Sealed 
Radioactive Sources'' or the criteria in Sec. 39.41. The use of the 
USASI standard is based on an NRC Notice of Generic Exemption published 
on July 25, 1989 (54 FR 30883). NRC regulations have not incorporated 
the USASI N5.10-1968 requirements for older sealed sources. The primary 
difference between the USASI standard and the existing requirements is 
that the existing requirements includes a vibration test that is 
consistent with current national standards. The USASI standard 
considered a vibration test and concluded that, to pass the other 
requirements, the source would be so rugged there was no reason to 
include a vibration test.
    The exemption allowing the use of the USASI standard was intended 
to avoid a situation in which well logging licensees might be 
unnecessarily forced out of business and have to dispose of their 
sources. This situation could arise because the original source 
manufacturers tested against the USASI standard, but did not retest 
these sources against the standards that became effective in 1989. The 
NRC determined that those sealed source models meeting the USASI 
standard would not adversely affect public health and safety. These 
sources had been used for years in operational situations and had 
demonstrated through actual use that vibration from drilling operations 
had not caused failure. The survey of licensees conducted for the RA 
and EA for this proposed rulemaking confirmed that these older sources 
have not presented a problem during actual use. Therefore, the NRC is 
proposing to codify within this section the existing practice to use, 
as an option, the USASI standards for sealed sources that were 
manufactured before July 14, 1989. Because many of these older sealed 
sources contain radioactive material with half-lives that allow their 
continued use (i.e., americium-241 and cesium-137 have half-lives of 
458 and 30 years respectively), this modification to the regulations is 
appropriate.
    However, a vibration test has been included in ANSI standards since 
1977, and by existing NRC regulations which were promulgated in 1987. 
Based on survey information done for this rulemaking, it is estimated 
that the cost to test a source to see if it meets the vibration 
requirement in Sec. 39.41 is $2,400. Only the prototype for each design 
requires testing. The number of prototype designs each year is small. 
The only survey respondent on this topic indicated that they produce, 
at most, one new prototype per year and they did not indicate that 
vibration testing is burdensome. The NRC believes that the cost for 
vibration testing is not overly burdensome and is consistent with (1) 
ANSI N542-1977, ``Sealed Radioactive Sources, Classification,'' 
published by the National Bureau of Standards [(NBS) currently the 
National Institute of Standards and Technology] in the 1978 NBS 
Handbook 126 and (2) ANSI/HPS N43.6-1997, ``Sealed Radioactive 
Sources--Classification'' approved in November 1997. ANSI/HPS N43.6-
1997 is the revised update to ANSI N542-1977. However, the oil-well 
logging requirements have not changed between the two ANSI standards 
and the NRC has decided to retain the current requirements for 
vibration testing.
    The second proposed change to this section is to meet Public Law 
104-113, ``National Technology and Transfer Act of 1995'' and Office of 
Management and Budget Circular A-119, ``Federal Participation in the 
Development and Use of Voluntary Consensus Standards and in Conformity 
Assessment Activities.'' This law encourages agencies to use 
``voluntary consensus standards'' (i.e., standards developed by a 
voluntary consensus body and made available to all interested parties). 
The existing NRC requirements are based on the older ANSI N542-1977 
standard, and allow licensees flexibility in determining how to conduct 
testing and ensuring integrity of the source. The NRC is proposing to 
add an optional method of meeting the design requirements by 
referencing the newer, current ANSI standard (ANSI/HPS N43.6-1997) 
within 10 CFR part 39. Although the current NRC requirements and ANSI/
HPS N43.6-1997 are quite similar, the NRC does not want to eliminate 
the ability to meet the existing NRC regulatory requirements; that 
could result in a problem similar to that experienced in 1989. That is, 
existing approved sealed sources might not have been tested or 
evaluated exactly as specified in ANSI/HPS N43.6-1997, which could 
result in well logging licensees having to dispose of acceptable sealed 
sources.
    The NRC is inviting public comment on whether adding this voluntary 
consensus standard (ANSI/HPS N43.6-1997) to 10 CFR part 39 is 
appropriate

[[Page 19093]]

for use by manufacturers of sealed sources for use in well logging.
    6. For clarity and to avoid confusion, the NRC is proposing to 
update Sec. 39.49 because it contains a date that has passed and is no 
longer appropriate. This section would be amended to remove the 
obsolete date.
    7. The NRC is proposing to update Secs. 39.15, 39.35, and 39.41 to 
conform with the agency's metrification policy published on June 19, 
1996 (61 FR 31169) by stating parameter values in dual units with 
International System of Units (SI) first and with English units in 
brackets.

Specific Changes in Regulatory Text

    The following section is provided to assist the reader regarding 
the specific changes made to each section or paragraph in 10 CFR part 
39. For clarity and content, a substantial portion of a particular 
section or paragraph may be repeated, while only a minor change is 
being made. This approach will allow the reader to effectively review 
the specific changes without cross-reference to existing material that 
has been included for content, but has not been significantly changed.
    Section 39.2: Two new definitions are being added for ECS and 
tritium neutron generator target source.
    Section 39.15(a)(5)(ii): This is being revised to allow a more 
performance-based approach to prevent inadvertent intrusion on an 
abandoned source.
    Section 39.15(a)(5)(iii): This is being revised to meet the NRC's 
metrification policy.
    Section 39.35(b): This is being revised to meet the NRC's 
metrification policy.
    Section 39.35(c)(1): This essentially repeats the existing 
paragraph on leak testing frequency, but notes that ECSs are not 
included in this paragraph.
    Section 39.35(c)(2): This is a new paragraph allowing a 3 year leak 
testing interval for ECSs.
    Section 39.35(d): This is being revised to meet the NRC's 
metrification policy.
    Section 39.35(e)(1): This is an editorial change to indicate that 
hydrogen-3 and tritium are the same.
    Sections 39.35(e)(4) and (5): This is being revised to meet the 
NRC's metrification policy.
    Section 39.41 has been significantly revised as described below:
    Section 39.41(a): This is a new paragraph describing the applicable 
requirements for a sealed source which includes requirements from the 
existing Sec. 39.41(a)(1) and (2).
    Section 39.41(b): This is a new paragraph to allow pre-1989 sources 
to meet USASI standards.
    Section 39.41(c): This is a new paragraph providing for the use of 
current ANSI standards.
    Section 39.41(d): This is the existing Sec. 39.41(a)(3).
    Section 39.41(d)(1)(v): This is being revised to meet the NRC's 
metrification policy (the old Sec. 39.41(a)(3)(v)).
    Section 39.41(e): This is the old Sec. 39.41(b) and is edited to be 
consistent with the above changes.
    Section 39.41(f): This is a new paragraph clarifying that this 
section does not apply to ECSs.
    Section 39.49: This is being revised to eliminate an obsolete date.
    Section 39.53: This is a new section providing requirements for 
ECSs.
    Section 39.55: This is a new section providing requirements for 
tritium neutron generator target sources.
    Sections 39.77(c)(1)(i) and (ii): This is being revised to allow an 
option to immediately abandoning a well without receiving prior NRC 
approval when the licensee believes there is an immediate threat to 
public health and safety.
    Section 39.77(d)(9): This is a new paragraph requiring the licensee 
to justify in writing why it was necessary to immediately abandon a 
well without prior NRC approval.

Compatibility of Agreement State Regulations

    The compatibility of the provisions in 10 CFR part 39 have been 
determined in accordance with the NRC's ``Statement of Principle and 
Policy for the Agreement State Program; Policy Statement on Adequacy 
and Compatibility of Agreement State Programs'' that was published on 
September 3, 1997 (62 FR 46517). The NRC is adding definitions for an 
``Energy compensation source'' and a ``Tritium neutron generator target 
source'' to Sec. 39.2 and adding two new sections to 10 CFR part 39. 
The definitions for an ECS and a tritium neutron generator target 
source are assigned Compatibility Category B. The new Sec. 39.53, 
Energy compensation source, and Sec. 39.55, Tritium neutron generator 
target source, are assigned Compatibility Category C. The NRC is not 
proposing compatibility changes for those sections of 10 CFR Part 39 
that are being modified. The present Compatibility Categories for the 
modified sections are: Section 39.41, Compatibility Category B; 
Secs. 39.15, 39.35, 39.49, 39.77(c) and (d), Compatibility Category C.
    Specific information about the NRC's Compatibility Policy and the 
levels of compatibility assigned to the present rule may be found at 
the Special Documents area of the Office of State Program's Web site, 
http://www.hsrd.ornl.gov/nrc/home.html.

Plain Language

    The Presidential Memorandum dated June 1, 1998, entitled, ``Plain 
Language in Government Writing,'' directed that the Federal 
government's writing be in plain language. The NRC requests comments on 
the proposed rule specifically with respect to the clarity and 
effectiveness of the language used. Comments should be sent to the 
address listed above.

Finding of No Significant Environmental Impact: Availability

    The Commission has determined under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 
subpart A of 10 CFR part 51, that this rule, if adopted, would not be a 
major Federal action significantly affecting the quality of the human 
environment, and therefore, an environmental impact statement is not 
required. The proposed rule would modify NRC regulations dealing with: 
(1) Low activity energy compensation sources; (2) tritium neutron 
generator target sources; (3) specific abandonment procedures in the 
event of an immediate threat; (4) changes to requirements for 
inadvertent intrusion on an abandoned source; (5) the codification of 
an existing generic exemption; (6) the removal of an obsolete date; and 
(7) updating 10 CFR Part 39 to be consistent with the Commission's 
metrification policy. The draft environmental assessment evaluated the 
maximum annual public health risk to members of the public as a result 
of these proposed changes and determined that there is no significant 
environmental impact as a result of the proposed changes.
    The NRC has sent a copy of the environmental assessment and this 
proposed rule to every State Liaison Officer and requested their 
comments. The environmental assessment and finding of no significant 
impact on which this determination is based are available for 
inspection at the NRC Public Document Room, 2120 L Street NW. (Lower 
Level), Washington, DC. Single copies of the environmental assessment 
and the finding of no significant impact are available from Mark 
Haisfield, Office of Nuclear Material Safety and Safeguards, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone 
(301) 415-6196.

Paperwork Reduction Act Statement

    This proposed rule increases the burden on licensees to justify in 
writing

[[Page 19094]]

the immediate threat to public health and safety that resulted in the 
implementation of abandonment procedures prior to NRC approval. The 
burden to include the justification in the existing report required in 
10 CFR 39.77(d) will increase from 4 hours to 4.25 hours per impacted 
report. Because the burden for this information collection requirement 
is insignificant, Office of Management and Budget (OMB) clearance is 
not required. Existing requirements were approved by the OMB, approval 
number 3150-0130.

Public Protection Notification

    If a means used to impose an information collection does not 
display a currently valid OMB control number, the NRC may not conduct 
or sponsor, and a person is not required to respond to, the information 
collection.

Regulatory Analysis

    The Commission has prepared a draft regulatory analysis on this 
proposed regulation. The analysis examines the costs and benefits of 
the alternatives considered by the Commission. The draft analysis is 
available for inspection in the NRC Public Document Room, 2120 L Street 
NW. (Lower Level), Washington, DC. Single copies of the draft analysis 
may be obtained from Mark Haisfield, Office of Nuclear Material Safety 
and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001, telephone (301) 415-6196.
    The Commission requests public comment on the draft regulatory 
analysis. Comments on the draft analysis may be submitted to the NRC as 
indicated under the ADDRESSES heading.

Regulatory Flexibility Certification

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 
605(b)), the Commission certifies that this rule, if adopted, will not 
have a significant economic impact upon a substantial number of small 
entities. All of the proposed amendments are to 10 CFR part 39 and are 
intended to either reduce regulatory burdens from unnecessary 
requirements or to clarify and update regulations to reduce confusion. 
Therefore, any economic impact to a small entity using 10 CFR part 39 
should be either neutral or positive.
    Any small entity subject to this regulation which determines that, 
because of its size, it is likely to bear a disproportionate adverse 
economic impact should notify the Commission of this in a comment that 
indicates the following:
    (a) The licensee's size and how the proposed regulation would 
result in a significant economic burden upon the licensee as compared 
to the economic burden on a larger licensee.
    (b) How the proposed regulations could be modified to take into 
account the licensee's differing needs or capabilities.
    (c) The benefits that would accrue, or the detriments that would be 
avoided, if the proposed regulations were modified as suggested by the 
licensee.
    (d) How the proposed regulation, as modified, would more closely 
equalize the impact of regulations or create more equal access to the 
benefits of Federal programs as opposed to providing special advantages 
to any individual or group.
    (e) How the proposed regulation, as modified, would still 
adequately protect public health and safety.

Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule, and therefore, a backfit analysis is 
not required because these amendments do not involve any provisions 
that would impose backfits as defined in 10 CFR 50.109(a)(1).

List of Subjects in 10 CFR Part 39

    Byproduct material, Criminal penalties, Nuclear material, Oil and 
gas exploration--well logging, Reporting and recordkeeping 
requirements, Scientific equipment, Security measures, Source material, 
Special nuclear material.
    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, the Energy Reorganization 
Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR part 39.

PART 39--LICENSES AND RADIATION SAFETY REQUIREMENTS FOR WELL 
LOGGING

    1. The authority citation for part 39 continues to read as follows:

    Authority: Secs. 53, 57, 62, 63, 65, 69, 81, 82, 161, 182, 183, 
186, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as 
amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2073, 2077, 
2092, 2093, 2095, 2099, 2111, 2112, 2201, 2232, 2233, 2236, 2282); 
secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 
1246 (42 U.S.C. 5841, 5842, 5846).

    2. Section 39.2 is amended by adding definitions, in their proper 
alphabetic order, of the terms energy compensation source and tritium 
neutron generator target source to read as follows:


Sec. 39.2  Definitions.

    Energy compensation source (ECS) means a small sealed source, with 
an activity not exceeding 3.7 MBq [100 microcuries], used within a 
logging tool, or other tool components, to provide a reference standard 
to maintain the tool's calibration when in use.
* * * * *
    Tritium neutron generator target source means a tritium source used 
within a neutron generator tube to produce neutrons for use in well 
logging applications.
* * * * *
    3. Section 39.15 is amended by revising paragraph (a)(5)(ii) and 
the introductory text of paragraph (a)(5)(iii) to read as follows:


Sec. 39.15  Agreement with well owner or operator.

    (a) * * *
    (5) * * *
    (ii) A means to prevent inadvertent intrusion on the source, unless 
the source is not accessible to any subsequent drilling operations; and
    (iii) A permanent identification plaque, constructed of long 
lasting material such as stainless steel, brass, bronze, or monel, must 
be mounted at the surface of the well, unless the mounting of the 
plaque is not practical. The size of the plaque must be at least 17 cm 
[7 inches] square and 3 mm
[\1/8\-inch] thick. The plaque must contain--
* * * * *
    4. Section 39.35 is amended by revising paragraphs (b), (c), 
(d)(1), (e)(1), (e)(4) and (e)(5) to read as follows:


Sec. 39.35  Leak testing of sealed sources.

* * * * *
    (b) Method of testing. The wipe of a sealed source must be 
performed using a leak test kit or method approved by the Commission or 
an Agreement State. The wipe sample must be taken from the nearest 
accessible point to the sealed source where contamination might 
accumulate. The wipe sample must be analyzed for radioactive 
contamination. The analysis must be capable of detecting the presence 
of 185 Bq [0.005 microcuries] of radioactive material on the test 
sample and must be performed by a person approved by the Commission or 
an Agreement State to perform the analysis.
    (c) Test frequency. (1) Each sealed source (except an energy 
compensation source (ECS)) must be tested at intervals not to exceed 6 
months. In the absence of a certificate from a transferor that a test 
has been made within the 6 months before the transfer, the sealed 
source may not be used until tested.

[[Page 19095]]

    (2) Each ECS that is not exempt from testing in accordance with 
paragraph (e) of this section must be tested at intervals not to exceed 
3 years. In the absence of a certificate from a transferor that a test 
has been made within the 3 years before the transfer, the ECS may not 
be used until tested.
    (d) Removal of leaking source from service. (1) If the test 
conducted pursuant to paragraphs (a) and (b) of this section reveals 
the presence of 185 Bq [0.005 microcuries] or more of removable 
radioactive material, the licensee shall remove the sealed source from 
service immediately and have it decontaminated, repaired, or disposed 
of by an NRC or Agreement State licensee that is authorized to perform 
these functions. The licensee shall check the equipment associated with 
the leaking source for radioactive contamination and, if contaminated, 
have it decontaminated or disposed of by an NRC or Agreement State 
licensee that is authorized to perform these functions.
* * * * *
    (e) * * *
    (1) Hydrogen-3 (tritium) sources;
* * * * *
    (4) Sources of beta- or gamma-emitting radioactive material with an 
activity of 3.7 MBq [100 microcuries] or less; and
    (5) Sources of alpha- or neutron-emitting radioactive material with 
an activity of 0.37 MBq [10 microcuries] or less.
    5. Section 39.41 is revised to read as follows:


Sec. 39.41  Design and performance criteria for sources.

    (a) A licensee may use a sealed source for use in well logging 
applications if--
    (1) The sealed source is doubly encapsulated;
    (2) The sealed source contains licensed material whose chemical and 
physical forms are as insoluble and nondispersible as practical; and
    (3) Meets the requirements of paragraph (b), (c), or (d) of this 
section.
    (b) For a sealed source manufactured on or before July 14, 1989, a 
licensee may use the sealed source, for use in well logging 
applications if it meets the requirements of USASI N5.10-1968, 
``Classification of Sealed Radioactive Sources,'' or the requirements 
in paragraph (c) or (d) of this section.
    (c) For a sealed source manufactured after July 14, 1989, a 
licensee may use the sealed source, for use in well logging 
applications if it meets the oil-well logging requirements of ANSI/HPS 
N43.6-1997, ``Sealed Radioactive Sources--Classification.''
    (d) For a sealed source manufactured after July 14, 1989, a 
licensee may use the sealed source, for use in well logging 
applications, if--
    (1) The sealed source's prototype has been tested and found to 
maintain its integrity after each of the following tests:
    (i) Temperature. The test source must be held at -40 deg. C for 20 
minutes, 600 deg. C for 1 hour, and then be subject to a thermal shock 
test with a temperature drop from 600 deg. C to 20 deg. C within 15 
seconds.
    (ii) Impact test. A 5 kg steel hammer, 2.5 cm in diameter, must be 
dropped from a height of 1 m onto the test source.
    (iii) Vibration test. The test source must be subject to a 
vibration from 25 Hz to 500 Hz at 5 g amplitude for 30 minutes.
    (iv) Puncture test. A 1 gram hammer and pin, 0.3 cm pin diameter, 
must be dropped from a height of 1 m onto the test source.
    (v) Pressure test. The test source must be subject to an external 
pressure of 1.695 x 10 7 pascals [24,600 pounds per square 
inch absolute].
    (e) The requirements in paragraphs (a), (b), (c), and (d) of this 
section do not apply to sealed sources that contain licensed material 
in gaseous form.
    (f) The requirements in paragraphs (a), (b), (c), and (d) of this 
section do not apply to energy compensation sources (ECS). ECSs must be 
registered with the Commission under Sec. 32.210 of this chapter or 
with an Agreement State.
    6. Section 39.49 is revised to read as follows:


Sec. 39.49  Uranium sinker bars.

    The licensee may use a uranium sinker bar in well logging 
applications only if it is legibly impressed with the words ``CAUTION--
RADIOACTIVE-DEPLETED URANIUM'' and ``NOTIFY CIVIL AUTHORITIES (or 
COMPANY NAME) IF FOUND.''
    7. Section 39.53 is added to read as follows:


Sec. 39.53  Energy compensation source.

    The licensee may use an energy compensation source (ECS) which is 
contained within a logging tool, or other tool components, only if the 
ECS contains quantities of licensed material not exceeding 3.7 MBq (100 
microcuries).
    (a) For well logging applications with a surface casing for 
protecting fresh water aquifers, use of the ECS is only subject to the 
requirements of Secs. 39.35, 39.37 and 39.39.
    (b) For well logging applications without a surface casing for 
protecting fresh water aquifers, use of the ECS is only subject to the 
requirements of Secs. 39.15, 39.35, 39.37, 39.39, 39.51, and 39.77.
    8. Section 39.55 is added to read as follows:


Sec. 39.55  Tritium neutron generator target source.

    (a) Use of a tritium neutron generator target source, containing 
quantities not exceeding 1,110 MBq [30 curies] and in a well with a 
surface casing to protect fresh water aquifers, is subject to the 
requirements of this part except Secs. 39.15, 39.41, and 39.77.
    (b) Use of a tritium neutron generator target source, containing 
quantities exceeding 1,110 MBq [30 curies] or in a well without a 
surface casing to protect fresh water aquifers, is subject to the 
requirements of this Part except Sec. 39.41.
    9. Section 39.77 is amended by revising paragraph (c)(1), 
redesignating paragraphs (d)(9) and (d)(10) as paragraphs (d)(10) and 
(d)(11), and adding a new paragraph (d)(9) to read as follows:


Sec. 39.77  Notification of incidents and lost sources; abandonment 
procedures for irretrievable sources.

* * * * *
    (c) * * *
    (1) Notify the appropriate NRC Regional Office by telephone of the 
circumstances that resulted in the inability to retrieve the source 
and--
    (i) Obtain NRC approval to implement abandonment procedures; or
    (ii) That the licensee implemented abandonment before receiving NRC 
approval because the licensee believed there was an immediate threat to 
public health and safety; and
* * * * *
    (d) * * *
    (9) The immediate threat to public health and safety justification 
for implementing abandonment if prior NRC approval was not obtained in 
accordance with paragraph (c)(1)(ii) of this section;
* * * * *
    Dated at Rockville, MD., this 31st day of March, 1999.

    For the Nuclear Regulatory Commission.
Frank J. Miraglia, Jr.,
Acting Executive Director for Operations.
[FR Doc. 99-9746 Filed 4-16-99; 8:45 am]
BILLING CODE 7590-01-P