[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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