[Federal Register Volume 66, Number 187 (Wednesday, September 26, 2001)]
[Notices]
[Pages 49215-49217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24048]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[IA-01-021]


In the Matter of Mr. Virgil J. Hood, Sr.; Order Prohibiting 
Involvement in NRC-Licensed Activities (Effective Immediately)

I

    Mr. Virgil J. Hood, Sr. was the President and Radiation Safety 
Officer (RSO) of Moisture Protection Systems Analysts, Inc. (MPSA or 
the Licensee) formerly located at 1350 Beverly Road, Suite 223, McLean, 
Virginia 22101. The Licensee was the holder of Byproduct Materials 
License No. 45-24851-02 (the license), which was issued by the Nuclear 
Regulatory Commission (NRC or Commission) pursuant to 10 CFR Part 30 on 
June 19, 1986 and renewed on January 30, 1992. The license authorized 
MPSA to possess byproduct material, i.e., a Seaman Nuclear Corporation 
Model R-50 portable roofing gauge containing a nominal 40 millicuries 
(mCi) of Americium-241, for use in measuring moisture density of roof 
surfaces in accordance with the conditions specified in the license. On 
April 20, 1998, the Licensee's license was revoked.

II

    Between December 31, 1997 and January 31, 2001, the NRC Office of 
Investigations (OI) conducted an investigation to determine the 
location of a moisture density gauge containing licensed material after 
the Licensee failed to pay the NRC annual license fee

[[Page 49216]]

for fiscal year 1996, and had vacated the premises listed on its 
license without prior notice to the NRC. These actions by the Licensee 
had resulted in the NRC issuing an Order Suspending License (Effective 
Immediately) to MPSA (Order Suspending License) on May 15, 1997. The 
Order Suspending License imposed certain requirements upon the Licensee 
and required a response from the Licensee. Subsequently, after the 
Licensee failed to submit the required answer to the Order Suspending 
License, a Notice of Violation and Proposed Imposition of Civil 
Penalty--$5,500, and Order Modifying Order Suspending License 
(Effective Immediately) and Order Revoking License (Order Revoking 
License) were issued to MPSA revoking its license on April 20, 1998. 
The Order Revoking License required that the Licensee maintain licensed 
material in safe storage, immediately notify the NRC of its current 
business location and status of licensed material, test the gauge for 
leak tightness, and transfer all licensed material to an authorized 
recipient within 30 days of the Order Revoking License. To date, the 
Licensee has failed to respond to the Order Revoking License. On May 5, 
2000, the NRC was notified that a portable moisture density gauge 
containing licensed material had been received at a landfill. The gauge 
was a Seaman Nuclear Corporation Model No. R-50 portable moisture 
density gauge, and was labeled as belonging to MPSA.
    The Licensee's license dated June 19, 1986, provides that the 
Licensee shall conduct its program in accordance with the statements, 
representations, and procedures contained in its application dated June 
10, 1986. Mr. Virgil J. Hood, Sr. is identified as the MPSA President 
and as being chiefly responsible for the Radiation Safety Program in 
the MPSA Application for Material License dated June 10, 1986. As 
President and the individual responsible for the Radiation Safety 
Program, Mr. Hood was responsible for the safe handling of licensed 
material and for ensuring that licensed activities were conducted in 
accordance with NRC requirements. In addition, in signing as the 
Certifying Officer on the 1986 application and the application for 
license renewal dated January 23, 1992, Mr. Hood attested that the 
moisture density gauge would be stored at one location (1350 Beverly 
Road, Suite 223, McLean VA 22101 in the renewal), that he was 
responsible for the radiation safety program, that the gauge was being 
stored in a locked enclosure that does not allow access by unauthorized 
persons, that leak tests would be performed, and, if there was need to 
dispose of the meter, that it would be returned to Seaman Nuclear 
Corporation. In signing the application for license, Mr. Hood certified 
that the MPSA program would conform with 10 CFR parts 30, 32, 33, 34, 
35, 40, and all information in the application.
    The Orders described above were sent to Mr. Virgil J. Hood, Sr. as 
President of MPSA. As President and the only user of the gauge 
identified in the application and license, Mr. Hood was required to 
respond to the Orders. This response should have included immediately 
notifying the NRC of its current business location and the status of 
the licensed material, submitting the results of testing the gauge for 
leak tightness, and confirming the transfer of all licensed material to 
an authorized recipient.
    The NRC's investigation and review of this matter has determined 
that Mr. Hood engaged in deliberate misconduct that caused MPSA to be 
in violation of the Order Revoking License dated April 28, 1998, and 10 
CFR 20.2201(a)(1)(i). Specifically, 10 CFR 30.34(a) requires, in part, 
that each license issued pursuant to the regulations in this part shall 
be subject to all the provisions of the Atomic Energy Act, now or 
hereafter in effect, and to all valid rules, regulations and orders of 
the Commission. As President and RSO for the Licensee, Mr. Hood did not 
respond in any manner to, or comply with, the requirements of the Order 
Revoking License to maintain the licensed material in safe storage, 
immediately notify the NRC of the Licensee's current business location 
and the status of the licensed material, test the sealed source for 
leak tightness, transfer the licensed material to an authorized 
recipient within 30 days of the date of the Order Revoking License, or 
respond to the violations outlined in the Notice.
    Although during the investigation, numerous additional attempts 
were made to contact Mr. Hood, including the issuance of two subpoenas 
for compelled interviews at NRC headquarters on September 16, 1998, and 
December 3, 1999, Mr. Hood failed to appear for the interviews and did 
not attempt to communicate with the NRC or respond to the Order 
Suspending License or Order Revoking License.
    In addition, 10 CFR 20.2201(a)(1)(i) requires, in part, that each 
licensee report by telephone immediately after its occurrence becomes 
known to the licensee, any lost, stolen, or missing licensed material 
in an aggregate quantity equal to or greater than 1,000 times the 
quantity specified in Appendix C to part 20 under such circumstances 
that it appears to the licensee that an exposure could result to 
persons in unrestricted areas. The NRC concluded that Mr. Hood's 
activities caused the Licensee to be in violation of 10 CFR 
20.2201(a)(1)(i) in that, since May 10, 2000, as President and RSO, Mr. 
Hood failed to report by telephone that 40 mCi of Americium-241, a 
quantity greater than 1,000 times the quantity specified in Appendix C 
to 10 CFR Part 20, contained in a Seaman Nuclear Corporation Model No. 
R-50 portable moisture density gauge, Serial Number 8064, was lost, 
stolen, or missing. In May 2000, a Seaman Nuclear Corporation Model No. 
R-50 portable moisture density gauge, bearing Serial Number 8064, was 
found in a landfill.
    In addition, the Licensee vacated the premises listed on the 
license (1350 Beverly Road, Suite 223, McLean, Virginia 22101) without 
prior notice in mid-December 1996, and a forwarding address was 
provided by one of the Licensee's clients as Atlas Contractors, Inc., 
2811 12th Street, NE., Washington, DC 20017-2402. The most recent 
business address for Atlas Contractors, Inc., is 6224 Georgia Ave NW, 
Washington, DC 20011-5112. As described above, the NRC has made 
numerous attempts to contact Mr. Hood at each of these addresses and 
issued two subpoenas for him to appear at compelled interviews at NRC 
headquarters. Most recently, on March 23, 2001, the NRC attempted to 
contact Mr. Hood, by certified mail to provide him with results of the 
investigation and review of this matter, and to provide him an 
opportunity to respond to the apparent violation and/or request a 
predecisional enforcement conference. The NRC's March 23, 2001, letter 
was sent to MPSA, care of Atlas Contractors, Inc., 6224 Georgia Avenue, 
NW, Washington, DC 20011 and was returned unopened. On May 18, 2001, 
the NRC re-sent this letter to Mr. Hood, at 1715 Leighton Wood Lane, 
Silver Spring, MD, and it was not returned, indicating that the letter 
was received.

III

    Based on the above, the NRC has concluded that Mr. Hood, President 
and RSO of the Licensee, engaged in deliberate misconduct that has 
caused the Licensee to be in violation of the Order Suspending License, 
Order Revoking License, and 10 CFR 20.2201(a)(1)(i). These actions 
constitute a violation of 10 CFR 30.10, 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

[[Page 49217]]

issued by the Commission. As defined by 10 CFR 30.10(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.
    Mr. Hood's action in causing the Licensee to violate the Order 
Revoking License, and 10 CFR 20.2201(a)(1)(i), and his unresponsiveness 
to the NRC, have raised serious doubt as to whether he can be relied 
upon to comply with NRC requirements.
    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. Hood were permitted at this time to be 
involved in NRC licensed activities. Therefore, the public health, 
safety and interest require that Mr. Hood be prohibited from any 
involvement in NRC-licensed activities for a period of five years from 
the date of this Order. Additionally, Mr. Hood is required to notify 
the NRC of his first employment in NRC-licensed activities at any time 
following the prohibition period. Furthermore, pursuant to 10 CFR 
2.202, I find that the deliberate nature of Mr. Virgil J. Hood Sr.'s 
conduct described above is such that the public health, safety and 
interest require that this Order be immediately effective.

IV

    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 30.10, and 10 CFR 150.20, it is 
hereby ordered, effective immediately, that:
    1. Mr. Virgil J. Hood, Sr. is prohibited for five 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 Mr. Virgil J. Hood, Sr. 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. At any time after the five year period of prohibition has 
expired, Mr. Virgil J. Hood, Sr. shall, within 20 days of acceptance of 
his first 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 
notification, Mr. Virgil J. Hood, Sr. 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 Mr. Virgil J. 
Hood, Sr. of good cause.

V

    In accordance with 10 CFR 2.202, Mr. Virgil J. Hood, Sr. 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. Virgil J. Hood, Sr. 
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 II, 61 Forsyth St. SW, Suite 23T85, Atlanta, GA 30303-8931, and 
to Mr. Virgil J. Hood, Sr. if the answer or hearing request is by a 
person other than Mr. Virgil J. Hood, Sr. If a person other than Mr. 
Virgil J. Hood, Sr. 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 Mr. Virgil J. Hood, Sr. 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. An Answer or a 
Request for Hearing Shall Not Stay the Immediate Effectiveness of This 
Order.

    Dated this 12th day of September 2001.

    For the Nuclear Regulatory Commission.
Carl J. Paperiello,
Deputy Executive Director for Materials, Research and State Programs.
[FR Doc. 01-24048 Filed 9-25-01; 8:45 am]
BILLING CODE 7590-01-P