[Federal Register Volume 65, Number 241 (Thursday, December 14, 2000)]
[Notices]
[Pages 78213-78215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31878]


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NUCLEAR REGULATORY COMMISSION

[IA-00-028]


In the Matter of Garner W. Reed; Order Prohibiting Involvement in 
NRC-Licensed Activities

I

    Garner W. Reed was employed by Public Service Electric & Gas 
Company (Licensee) at the Salem Nuclear Power Plant (Salem) from on or 
about August 13, 1996, to November 12, 1997. The licensee is the holder 
of Licenses No. DPR-70 and DPR-75 issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR part 50 on June 30, 
1977, and October 13, 1981, respectively. The Salem facility is located 
near Wilmington, DE.
    Mr. Reed was employed by the Wisconsin Electric Power Company 
(Licensee) at the Point Beach Nuclear Power Plant, Units 1 and 2 (Point 
Beach), from on or about November 17, 1997 to April 30, 1999. The 
Licensee is the holder of Licenses No. DPR-24 and DPR-27 issued by the 
Commission pursuant to 10 CFR part 50 on October 5, 1970 and March 8, 
1973, respectively. The Point Beach facility is located near Manitowoc, 
WI.
    On May 13, 1999, Mr. Reed, applied for unescorted access to the 
Donald C. Cook Nuclear Power Plant, Units 1 and 2 (D.C. Cook), which is 
operated by the American Electric Power Company (Licensee or AEP). The 
Licensee is the holder of Licenses No. DPR-58 and DPR-74, issued by the 
Commission pursuant to 10 CFR part 50 on October 28, 1975 and July 1, 
1978, respectively. The D.C. Cook plant is located near Bridgeman, MI.

II

    In applying for unescorted access to the D.C. Cook Plant, on May 
13, 1999, Mr. Reed was required to explain any arrests, pending 
charges, or convictions within the five years prior to the date of 
application. While Mr. Reed indicated that he had been convicted of 
operating a motor vehicle while intoxicated (OWI) prior to his 
employment at the Point Beach, Mr. Reed failed to disclose that

[[Page 78214]]

he had been arrested while he was employed at the Point Beach Plant. 
Representatives of the D. C. Cook Plant learned of the potentially 
false information provided by Mr. Reed and contacted personnel at the 
Point Beach Plant about Mr. Reed's arrest record. It was determined by 
the D. C. Cook licensee that Mr. Reed had not notified officials at the 
Point Beach Plant about his arrest in Two Rivers, WI, while he was 
employed at that facility. The NRC learned of Mr. Reed's failure to 
report arrests during a routine security inspection at the Point Beach 
Plant on July 30, 1999. As a result of this information, the NRC Office 
of Investigations (OI) conducted an investigation into the apparent 
deliberate failures by Mr. Reed to fully disclose his arrest 
information to NRC Licensees.
    Information obtained during the OI investigation indicated that Mr. 
Reed was arrested and subsequently convicted of:
    Possession of marijuana, receiving and concealing stolen property 
in Mobile, AL, on or about June 22, 1976,
    Driving under the influence of alcohol in Louisiana on May 13, 
1993,\1\
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    \1\ Mr. Reed admits to having held a driver's license issued by 
the State of Louisiana, but denies having been arrested for OWI in 
that statement. However, official records indicate the existence of 
this arrest in the State of Louisiana.
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    Operating while intoxicated (OWI) in Huntsville, AL, during 
November 1993,
    OWI in Hamilton County, TN, on November 16, 1994,
    OWI in Hamilton County, Chattanooga, TN, on October 17, 1995, 
alternately reported as Ringgold, GA,\2\
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    \2\ Chattanooga, TN, Hamilton County, TN, and Ringgold, GA, are 
nearby communities.
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    OWI in Woodstown, NJ, on October 5, 1997,
    OWI in New Jersey on January 11, 1998,\3\ and
    OWI in Two Rivers, WI, on April 10, 1999.
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    \3\ Mr. Reed alternately indicates that this arrest occurred in 
early 1997 and on January 11, 1998, in the State of New Jersey, but 
does not recall the specific jurisdiction. This arrest was not 
listed on official records.
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    Other information gathered during the OI investigation indicated 
that:
    Mr. Reed failed to notify, as required by the Licensee's NRC 
approved physical security plan, the Salem Plant of at least one 
arrest, (the arrest that occurred in Woodstown, N.J. on October 5, 
1997), while he was employed at that facility,
    Mr. Reed failed to notify, as required by the Licensee's NRC 
approved physical security plan, the Point Beach Plant of his arrest on 
April 10, 1999 in Two Rivers, WI, while he was employed at that 
facility, and
    Mr. Reed failed to list, as required by the Licensee's NRC approved 
physical security plan, his arrests on November 16, 1994 (in Hamilton 
County, TN), October 17, 1995 (in Chattanooga, TN), and April 10, 1999 
(in Two Rivers, WI), on his application for unescorted access to the 
Cook Plant.
    During his sworn, transcribed interview with the OI investigator on 
November 4, 1999, Mr. Reed admitted that he knew he was required to 
report his arrests to the Licensees, but stated that he was afraid he 
would lose his job in the nuclear industry if the Licensees learned of 
all of his OWI arrests.
    10 CFR 73.56(b) requires NRC licensees \4\ to establish and 
maintain access authorization programs to grant individuals unescorted 
access to the protected and vital areas of nuclear power plants. These 
programs and the implementing procedures at each plant require 
individuals seeking unescorted access to divulge their criminal history 
for evaluation and to identify to the licensee any subsequent arrests 
after having been granted unescorted access to the facility. 
Furthermore, 10 CFR 50.5(a)(2) provides that an employee of a licensee 
or an employee of a contractor of any licensee may not deliberately 
submit to the NRC or 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. An individual's 
criminal history is material to the NRC because it is part of the 
information a licensee evaluates to provide high assurance that 
individuals granted unescorted to NRC licensed facilities are 
trustworthy and reliable, and do not constitute an unreasonable risk to 
the health and safety of the public including a potential to commit 
radiological sabotage (10 CFR 73.56(b)).
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    \4\ These programs were required to be implemented at Salem, 
Point Beach and D.C. Cook by April 27, 1992. See 10 CFR 73.56(a).
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    Based on the information developed during the OI investigation, it 
was concluded that Mr. Reed deliberately submitted information 
concerning his criminal history to the licensees operating Salem, Point 
Beach and D.C. Cook facilities that he knew was incomplete and 
inaccurate.
    Furthermore, Mr. Reed provided inaccurate information to the OI 
investigator during a sworn, transcribed interview on November 4, 1999. 
Mr. Reed stated that his arrest on June 22, 1976, was for possession of 
stolen property, the charges against him were dropped and he was 
subsequently cleared of the charges. Mr. Reed failed to disclose that 
he was arrested for possession of marijuana, along with receiving and 
concealing stolen property. Mr. Reed also failed to divulge that he was 
convicted on both of those charges with a suspended jail sentence of 36 
months and placed on probation for a period of 36 months.

III

    Based on the above, it appears that Garner W. Reed, a former 
employee of the Licensees, has engaged in deliberate misconduct in 
violation of 10 CFR 50.5. The NRC must be able to rely on its licensees 
and the employees of its licensees to comply with NRC requirements, 
including the requirement to provide information that is complete and 
accurate in all respects material to the NRC. Garner W. Reed's 
deliberate actions in making deliberate misrepresentations and 
omissions to the Licensees and to the NRC have raised serious doubt as 
to whether he can be relied upon to comply with NRC requirements and to 
provide complete and accurate information to the NRC and 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 Garner W. Reed were permitted at this time to be 
involved in NRC-licensed activities. Therefore, the public health, 
safety and interest require that Garner W. Reed be prohibited from any 
involvement in NRC-licensed activities for a period of one year from 
the date of this Order. Additionally, Garner W. Reed for a period of 
one year is required to notify the NRC of his employment in NRC-
licensed activities following the prohibition period.

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, 10 CFR 50.5, 10 CFR 73.56, and 10 CFR 
150.20, it is hereby ordered that:
    1. Garner W. Reed is prohibited for one year 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.

[[Page 78215]]

    2. If Garner W. Reed 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 one year period of 
prohibition has expired, Garner W. Reed 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 the NRC-licensed 
activities. In the first notification, Garner W. Reed 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 Garner W. 
Reed of good cause.

V

    In accordance with 10 CFR 2.202, Garner W. Reed 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 Garner W. Reed 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 III, 801 Warrenville Road, 
Lisle, IL 60532-4351 and to Garner W. Reed if the answer or hearing 
request is by a person other than Garner W. Reed. If a person other 
than Garner W. Reed 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 Garner W. Reed 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 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.

    Dated: Dated this 4th day of December 2000.

For the Nuclear Regulatory Commission,
Frank J. Miraglia, Jr.,
Deputy Executive Director for Reactor Programs.
[FR Doc. 00-31878 Filed 12-13-00; 8:45 am]
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