[Federal Register Volume 65, Number 216 (Tuesday, November 7, 2000)]
[Notices]
[Pages 66777-66779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28496]


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NUCLEAR REGULATORY COMMISSION

[IA-00-032]


In the Matter of Hiram J. Bass; Order Prohibiting Involvement in 
NRC-Licensed Activities (Effective Immediately)

I

    Hiram J. Bass was formerly employed as the Measuring and Test 
Equipment (M&TE) Program Administrator by Tennessee Valley Authority 
(TVA or Licensee). The Licensee is the holder of License Nos. DPR-33, 
DPR-52, DPR-68, issued by the Nuclear Regulatory Commission (NRC or 
Commission) pursuant to 10 CFR part 50 on December 20, 1973, August 2, 
1974, and August 18, 1976, respectively. The licenses authorize the 
operation of the Browns Ferry Nuclear Plant Units 1, 2, and 3 (BFN or 
facility) in accordance with the conditions specified therein. The 
facility is located on the Licensee's site in Athens, Alabama.

II

    On September 21, 1999, the Nuclear Regulatory Commission's (NRC) 
Office of Investigations (OI) initiated an investigation to determine 
whether Hiram J. Bass deliberately failed to issue and/or disposition 
nonconformance evaluations as required by site procedures while 
employed as the M&TE Program Administrator at the facility. The NRC 
also conducted an inspection of this issue during the period April 2 
through June 24, 2000. The results of this investigation and inspection 
were documented in NRC Inspection Report 50-259/00-03, 50-260/00-03, 
50-296/00-03, issued on July 27, 2000, and our letter to Mr. Bass dated 
July 31, 2000.
    As background, certain M&TE used at BFN is calibrated on a regular 
basis by TVA's Central Laboratory Field Testing Services (CLFTS). When 
CLFTS identifies an instrument that is out of tolerance, that 
information is forwarded to the BFN Maintenance Department, M&TE Group. 
The M&TE Program Administrator is responsible for issuing and ensuring 
disposition of each nonconformance evaluation for M&TE found to be out 
of tolerance. The purpose of a nonconformance evaluation is, among 
other reasons, to initiate the facility review process to ensure that 
plant components have not been negatively affected by the out-of-
tolerance M&TE, and to initiate action to address plant components that 
have been affected.
    BFN Technical Specification 5.4.1, BFN Site Standard Practice 
Procedure (SSP)-6.7, Control of Measuring and Test Equipment, Revision 
8A, effective May 27, 1997 through June 1, 1998, and TVA Standard 
Programs and Processes Procedure (SPP)-6.4, Measuring and Test 
Equipment, Revision 0, effective May 29, 1998, through August 15, 1999, 
together require nonconformance evaluations to be issued and 
dispositioned for conditions such as lost M&TE or standards, out-of-
tolerance M&TE or plant standards, damaged or otherwise defective M&TE 
or plant standards, and disassembled M&TE or plant standards.
    In June 1999, a BFN self-assessment of the M&TE program revealed 
that several out-of-tolerance M&TE items did not have nonconformance 
evaluations initiated by BFN. Further TVA review determined that, from 
June 1997 to June

[[Page 66778]]

1999, approximately 500 nonconformance evaluations were not properly 
issued and/or dispositioned for components tested or inspected using 
the out-of-tolerance M&TE. When questioned by TVA and subsequently by 
the NRC OI, Mr. Bass failed to explain why the large number of 
nonconformance evaluations had not been issued and/or dispositioned. On 
June 21, 1999, following questions by TVA regarding this matter, Mr. 
Bass resigned from TVA.
    The NRC's investigation and inspection of this matter concluded 
that Mr. Bass deliberately failed to issue and/or disposition 
nonconformance evaluations on test equipment that was out-of-tolerance, 
in accordance with BFN Technical Specification required Licensee 
procedures.
    The NRC informed Mr. Bass by certified letter dated July 31, 2000, 
of the results of the NRC's investigation and inspection of this 
matter, and provided Mr. Bass the opportunity to respond to this matter 
or request a predecisional enforcement conference. Receipt of the 
letter by Mr. Bass was verified by his signature on the certified mail 
return receipt. The NRC has attempted to contact Mr. Bass by telephone 
on numerous occasions; however, to date he has not responded to the 
NRC's July 31, 2000 letter.

III

    Based on the above, the NRC has concluded that Mr. Bass engaged in 
deliberate misconduct from approximately June 1997 to June 1999, by 
deliberately failing to adhere to Technical Specification 5.4.1 
required Licensee procedures related to out of tolerance measuring and 
test equipment (M&TE).
    These actions constituted a violation of 10 CFR 50.5(a)(1), which 
prohibits an individual from engaging in deliberate misconduct that 
causes a licensee to be in violation of any rule, regulation, or order 
or any term, condition or limitation of any license issued by the 
Commission. As defined by 10 CFR 50.5(c)(2), deliberate misconduct 
means an intentional act or omission that the person knows constitutes 
a violation of a requirement, procedure, or instruction of a licensee; 
in this case Technical Specification 5.4.1. The NRC must be able to 
rely on the Licensee and its employees to comply with NRC requirements. 
Mr. Bass' conduct raises serious doubt about his trustworthiness and 
reliability; particularly whether he can be relied upon to comply with 
NRC requirements in the future.
    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 Mr. Bass were permitted at this time to be 
involved in NRC-licensed activities. Therefore, the public health, 
safety and interest require that Mr. Bass be prohibited from any 
involvement in NRC-licensed activities for a period of three years from 
the date of his resignation from the Licensee (June 21, 1999). 
Additionally, Mr. Bass is required to notify the NRC of his first 
employment after the prohibition period ends and all subsequent 
employment in NRC-licensed activities for a period of three years 
following the prohibition period. Furthermore, pursuant to 10 CFR 
2.202, I find that the significance of Mr. Bass' conduct described 
above is such that the public health, safety and interest require that 
this Order be immediately effective.

IV

    Accordingly, pursuant to sections 103, 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 50.5, it is hereby ordered, 
effective immediately, that:
    1. Hiram J. Bass is prohibited for three years from the date of his 
resignation, June 21, 1999, 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 Mr. Bass is currently involved with another licensee in NRC-
licensed activities, he must immediately 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, Mr. Bass 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 (OE), 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 the NRC-licensed 
activities. In the first notification, Mr. Bass 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, OE, may, in writing, relax or rescind any of the 
above conditions upon demonstration by Mr. Bass of good cause.

V

    In accordance with 10 CFR 2.202, Hiram J. Bass 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 Mr. Bass 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: 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 & Administration at the same address, to the 
Regional Administrator, NRC Region II, 61 Forsyth Street, SW, Suite 
23T85, Atlanta, GA, 30303, and to Mr. Bass, if the answer or hearing 
request is by a person other than Mr. Bass.
    If a person other than Mr. Bass 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 Mr. Bass 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.
    Pursuant to 10 CFR 2.202(c)(2)(i), Mr. Bass may, in addition to 
demanding a hearing, at the time the answer is filed or sooner, move 
the presiding officer to set aside the immediate effectiveness of

[[Page 66779]]

the Order on the ground that the Order, including the need for 
immediate effectiveness, is not based on adequate evidence but on mere 
suspicion, unfounded allegations, or error.
    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.

    For the Nuclear Regulatory Commission.

    Dated: Dated this 27th day of October 2000.
R.W. Borchardt,
Director, Office of Enforcement.
[FR Doc. 00-28496 Filed 11-06-00; 8:45 am]
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