[Federal Register Volume 64, Number 209 (Friday, October 29, 1999)]
[Notices]
[Pages 58456-58457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28414]
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NUCLEAR REGULATORY COMMISSION
[IA 99-049]
Randall G. Falvey; Order Prohibiting Involvement in NRC-Licensed
Activities
I
Randall G. Falvey was employed from January 3, 1994 to October 30,
1998, as the training manager for the Wackenhut Corporation, the
security contractor of the Wisconsin Public Service Corporation
(Licensee). The Licensee holds license No. DPR-43 issued by the Nuclear
Regulatory Commission (NRC or Commission) pursuant to 10 CFR Part 50 on
June 16, 1974. The license authorizes the operation of the Kewaunee
Nuclear Power Plant (facility) in accordance with the conditions
specified therein. The facility is located on the Licensee's site near
Green Bay, Wisconsin.
II
From December 21, 1998 to June 21, 1999, an investigation of
licensed activities was conducted by the NRC Office of Investigations
(OI) in response to information provided to NRC Region III by the
Licensee on October 14, 1998. The Licensee reported that information
had been received which indicated the annual test firing of shotguns
used by the security force at the Kewaunee Nuclear Power Plant was not
performed when due. The Licensee conducted an investigation and
determined that Mr. Randall G. Falvey, the training manager for the
Wackenhut Corporation, was assigned the responsibility for ensuring
that each firearm at this site, including shotguns, was test fired
annually. The investigation by the Licensee determined that Mr. Falvey
had not ensured that 11 shotguns during 1997 and nine shotguns during
1998 were tested. The investigation by the Licensee also established
that Mr. Falvey falsified the records of those tests in order to show
that the tests had been conducted. The Licensee also reported that two
shotguns which Mr. Falvey had not tested and for which he had falsified
test records, failed to properly cycle during the test firing following
the identification of this issue.
The OI investigation also determined that during the Licensee's
investigation of this matter, Mr. Falvey provided false information
about the test firings to the Licensee's Security Director for the
Kewaunee Nuclear Power Plant. In a written statement to the Security
Director, Mr. Falvey wrote that he had completed the test firings on
the shotguns. However, review of Kewaunee Plant security access records
during the licensee's investigation for May 1997 and May and June 1998,
on the dates that Mr. Falvey indicated that the shotguns were tested,
showed both that Mr. Falvey had, in some instances, not entered areas
where shotguns were stored and, in other instances, that Mr. Falvey had
not stayed in an area long enough to retrieve a shotgun for testing and
replace it with another. Security personnel were interviewed and none
could recall retrieving or firing a shotgun at Mr. Falvey's request.
Furthermore, Mr. Falvey could not provide the name of any individual
who may have retrieved or test fired a shotgun at the direction of Mr.
Falvey. Other records indicated that none of these firearms were taken
to the firing range or cleaned after test firing.
Condition No. 2.C.(4) of the NRC operating license for the Kewaunee
Nuclear Power Plant requires the Licensee to maintain in effect and
fully implement all provisions of the Commission-approved Kewaunee
Nuclear Power Plant Security Manual and the Licensee's Security
Implementing Procedure (SIP) 30.02-10, ``Testing, Inspection, and
Maintenance of Security Equipment.'' The annual testing of site-
assigned weapons,
[[Page 58457]]
including shotguns, and the creation and maintenance of records of
those tests are required by the NRC-approved Kewaunee Nuclear Power
Plant Security Manual and the procedures implementing that manual. 10
CFR 50.9(a), ``Completeness and Accuracy of Information,'' provides, in
part, that information required by a condition of a Commission license
to be maintained by a licensee must be complete and accurate in all
material respects. 10 CFR 50.5(a)(2), ``Deliberate Misconduct,''
provides in part that a contractor employee of a Commission licensee
may not deliberately submit to a licensee or a licensee's contractor
information that the person submitting the information knows to be
incomplete or inaccurate in some respect material to the NRC. The
records of the shotgun tests are material to the NRC because each
record helps to demonstrate the Licensee's compliance with the
requirements of the NRC-approved Kewaunee Nuclear Power Plant Security
Manual. Based on the Licensee's and OI's investigations, it appears
that Randall G. Falvey deliberately provided information to the
Licensee that he knew to be incomplete or inaccurate in some respect
material to the NRC, in violation of 10 CFR 50.5. In particular, on
October 12, 1998, Mr. Falvey created false records indicating that a
number of shotguns had been tested during May 1997 and May--June 1998,
and on October 14, 1998, Mr. Falvey told the Licensee's Security
Director that the shotguns had been tested as required.
The NRC must be able to rely on the Licensee and its employees to
comply with NRC requirements, including the requirements to provide
information and maintain records that are complete and accurate in all
material respects and to refrain from deliberate misconduct. The
actions of Randall G. Falvey in causing the Licensee to violate 10 CFR
50.9 and his violation of 10 CFR 50.5 have raised serious doubt as to
whether Mr. Falvey can be relied upon to comply with NRC requirements
and to provide complete and accurate information to NRC licensees.
Consequently, I lack the requisite reasonable assurance that
licensed activities can be conducted in compliance with the
Commission's requirements and that the health and safety of the public
will be protected if Randall G. Falvey were permitted at this time to
be involved in NRC-licensed activities. Therefore, the public health,
safety and interest require that Randall G. Falvey be prohibited from
any involvement in NRC-licensed activities for a period of three years
from the date of this Order. Additionally, Randall G. Falvey is
required to notify the NRC of his first employment in NRC-licensed
activities for the three years following the prohibition period.
IV
Accordingly, pursuant to sections 103, 161b, 161i, 182 and 186 of
the Atomic Energy Act of 1954, as amended, and the Commission's
regulations in 10 CFR 2.202, 10 CFR 50.5, and 10 CFR 150.20, It is
hereby ordered that:
1. Randall G. Falvey is prohibited for three years from the date of
this Order from engaging in NRC-licensed activities. NRC-licensed
activities are those activities that are conducted pursuant to a
specific or general license issued by the NRC, including, but not
limited to, those activities of Agreement State licensees conducted
pursuant to the authority granted by 10 CFR 150.20.
2. If Randall G. Falvey is currently involved with a licensee in
NRC-licensed activities, he must cease those activities, and inform the
NRC of the name, address and telephone number of the employer, and
provide a copy of this order to the employer.
3. For a period of three years after the three year period of
prohibition has expired, Randall G. Falvey shall, within 20 days of his
acceptance of each employment offer involving NRC-licensed activities
or his becoming involved in NRC-licensed activities, as defined in
Paragraph IV.1 above, provide notice to the Director, Office of
Enforcement, U. S. Nuclear Regulatory Commission, Washington, DC 20555,
of the name, address, and telephone number of the employer or the
entity where he is, or will be, involved in NRC-licensed activities. In
the first notification Randall G. Falvey shall include a statement of
his commitment to compliance with regulatory requirements and the basis
why the Commission should have confidence that he will now comply with
applicable NRC requirements.
The Director, Office of Enforcement, may, in writing, relax or
rescind any of the above conditions upon demonstration by Randall G.
Falvey of good cause.
V
In accordance with 10 CFR 2.202, Randall G. Falvey 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, DC 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 shall
set forth the matters of fact and law on which Randall G. Falvey 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: Rulemaking 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 Assistant General Counsel for Materials Litigation and
Enforcement at the same address, to the Regional Administrator, NRC
Region III, 801 Warrenville Road, Lisle, IL 60532-4351, and to Randall
G. Falvey if the answer or hearing request is by a person other than
Mr. Falvey. If a person other than Randall G. Falvey 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 Randall G. Falvey or 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 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 effective and 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.
For the Nuclear Regulatory Commission.
Dated this 19th day of October 1999 Rockville, Maryland.
Frank J. Miraglia, Jr.,
Deputy Executive Director for Reactor Programs.
[FR Doc. 99-28414 Filed 10-28-99; 8:45 am]
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