[Federal Register Volume 65, Number 221 (Wednesday, November 15, 2000)]
[Notices]
[Pages 69053-69055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29248]


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NUCLEAR REGULATORY COMMISSION

[IA-00-039]


In the Matter of Mr. David D. Klepadlo; Order Prohibiting 
Involvement in NRC-Licensed Activities (Effective Immediately)

I

    Mr. David D. Klepadlo (Mr. Klepadlo) is currently the President of 
David D. Klepadlo & Associates (K & A). K & A was the holder of 
Materials License No. 37-30236-01 issued by the Nuclear Regulatory 
Commission (NRC) on September 11, 1995, pursuant to 10 CFR Part 30, 
until such License was revoked on August 9, 1999, for non-payment of 
fees. The license authorized possession and use of two Troxler 
Electronics Laboratories (Troxler) portable nuclear density gauges 
(gauges).

II

    On July 9, 1999, an Order Revoking License was issued to K & A for 
non-payment of fees, and on August 9, 1999, the license was revoked. 
Following the revocation of K & A's license, Mr. Oberg, an NRC 
inspector, contacted Mr. Klepadlo by telephone on August 12, 1999. Mr. 
Klepadlo told Mr. Oberg that he no longer possessed the two Troxler 
gauges, having returned them to Troxler, and further stated that he 
would look for the documentation showing the gauges were returned to 
Troxler and would contact the NRC. In a letter to the NRC dated 
September 3, 1999, Mr. Klepadlo stated, ``These test gauges were 
returned to Troxler in North Carolina in the Fall of 1997 and have not 
been in our possession since that time.'' However, Mr. Klepadlo did not 
provide any documentation supporting that the gauges were returned to 
Troxler.
    On October 25, 1999, the NRC sent a letter to K & A indicating that 
the NRC had not yet received any documentation from K & A that the 
gauges had been returned to Troxler, and that Troxler had no record of 
receipt of the gauges. This letter also requested that K & A verify the 
final disposition of the gauges. Since repeated attempts by the NRC 
failed to ascertain the disposition of the gauges, an NRC inspection 
was conducted at the K & A facility on February 22, 2000, during which 
both Troxler gauges were found to be stored at the facility.

III

    The NRC requirement of 10 CFR 30.10(a)(1) prohibits deliberate 
misconduct that causes a licensee to be in violation of any license 
issued by the NRC. Also, the NRC requirement of 10 CFR 30.10(a)(2) 
prohibits an individual from deliberately submitting to the NRC 
information that the individual knows to be incomplete or inaccurate in 
some respect material to the NRC.
    The NRC has concluded that Mr. Klepadlo violated 10 CFR 30.10(a)(1) 
and (a)(2). Specifically, after the NRC revoked K & A's Materials 
License No. 37-30236-01 on August 9, 1999, Mr. Klepadlo violated 10 CFR 
30.10(a)(1) and (a)(2) when he knowingly and deliberately provided 
false information to the NRC, which caused K & A to violate 10 CFR 
30.9. The violation occurred when Mr. Klepadlo: (1) told an NRC 
inspector during a telephone conversation on August 12, 1999, that he 
no longer possessed the gauges, having returned them to Troxler; and 
(2) signed and submitted a letter to the NRC on September 3, 1999, that 
the gauges were returned to Troxler in North

[[Page 69054]]

Carolina in the Fall of 1997 and have not been in K & A's possession 
since that time. This was false information because the gauges were at 
the K & A facility at the time of Mr. Klepadlo's August 12, 1999, 
statement and September 3, 1999, letter.
    Before the NRC made this final enforcement decision, a letter from 
the NRC dated September 18, 2000, afforded Mr. Klepadlo an opportunity 
to request a predecisional enforcement conference or respond in writing 
to the apparent violation. Mr. Klepadlo responded to the apparent 
violation in a letter dated October 17, 2000, stating that the NRC's 
conclusion that he made false statements to the NRC concerning the 
location of the gauges was incorrect. Mr. Klepadlo stated that as 
President of K & A, he cannot personally know the location of every 
piece of equipment owned by the company, and therefore, was not aware 
of the specific location of the gauges at each and every moment.
    Notwithstanding Mr. Klepadlo's contention, the NRC maintains that 
the violation was deliberate. In making this conclusion, the NRC 
considered that: (1) the Radiation Safety Officer (RSO) at K & A, who 
cared for the gauges, was laid off in January 1998; (2) Mr. Klepadlo, 
during a transcribed interview with an NRC investigator on June 13, 
2000, stated under oath, that once the RSO had left employment at K & 
A, Mr. Klepadlo's ``only objective in life'' was to get rid of the 
gauges, and that's what he tried to do, spending a lot of time 
contacting everyone he knew; and (3) the gauges were found at the K & A 
facility during an NRC inspection on February 22, 2000. Mr. Klepadlo, 
having been unsuccessful in his attempts to get rid of the gauges and 
having stated that his only objective after the RSO left was to get rid 
of the gauges, must have known the gauges were at K & A at the time of 
his August 12, 1999, oral statement to Mr. Oberg, and in his September 
3, 1999, letter to the NRC. Therefore, the NRC concludes that his false 
statements were also deliberate.

IV

    The NRC must be able to rely on the integrity of Licensee employees 
to comply with NRC requirements, including the requirement to provide 
information that is complete and accurate in all material respects. Mr. 
Klepadlo's actions in deliberately violating Commission regulations, 
and deliberately and knowingly providing false information to the NRC 
calls into question his trustworthiness and reliability, and raises 
serious questions as to whether he can be relied upon to comply with 
NRC requirements and to provide complete and accurate information to 
the NRC.
    Consequently, I lack the requisite reasonable assurance that any 
future licensed activities could be conducted in compliance with the 
Commission's requirements, and that the health and safety of the public 
would be protected, if Mr. Klepadlo were permitted to be involved in 
NRC-licensed activities. Therefore, the NRC has determined that the 
public health, safety and interest require that David D. Klepadlo be 
prohibited from any involvement in NRC-licensed activities for a period 
of three years from the date of this Order. Additionally, Mr. Klepadlo 
is required to notify the NRC of his first employment in NRC-licensed 
activities following the prohibition period. Furthermore, pursuant to 
10 CFR 2.202, I find that the significance and willfulness of Mr. 
Klepadlo's conduct described above is such that the public health, 
safety and interest require that this Order be immediately effective.

V

    Accordingly, pursuant to Sections 81, 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 30, and 10 CFR 150.20, It Is 
Hereby Ordered, Effective Immediately, That:
    (1) David D. Klepadlo is prohibited from engaging in NRC-licensed 
activities for three years from the date of this Order. 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. Klepadlo 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 one year after the three year period of 
prohibition has expired, Mr. Klepadlo 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 V.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 the NRC-licensed 
activities. In the first notification Mr. Klepadlo shall include a 
statement of his commitment to comply 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 Mr. Klepadlo 
of good cause.

VI

    In accordance with 10 CFR 2.202, David D. Klepadlo 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. Klepadlo 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 Assistant General 
Counsel for Materials Litigation and Enforcement at the same address, 
to the Regional Administrator, NRC Region I, 475 Allendale Road, King 
of Prussia, Pennsylvania 19406, and to Mr. Klepadlo if the answer or 
hearing request is by a person other than Mr. Klepadlo. If a person 
other than Mr. Klepadlo requests a hearing, that person shall set forth 
with particularity the manner in which that person's 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. Klepadlo 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.

[[Page 69055]]

    Pursuant to 10 CFR 2.202(c)(2)(i), Mr. Klepadlo 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 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 V 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 V 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.

    Dated this 3rd day of November 2000.

    For the Nuclear Regulatory Commission.
Carl J. Paperiello,
Deputy Executive Director for Materials, Research and State Programs.
[FR Doc. 00-29248 Filed 11-14-00; 8:45 am]
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