[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Notices]
[Pages 49706-49707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24335]


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NUCLEAR REGULATORY COMMISSION

[IA-01-022]


In the Matter of Mr. Virgil J. Hood, Jr.; Demand for Information

I

    Mr. Virgil J. Hood, Jr. was the Vice President 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20, 1998, the Licensee's license was revoked.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 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) (Order 
Suspending License) to MPSA 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

[[Page 49707]]

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 OI investigation determined that the Licensee deliberately 
refused to allow NRC inspection of the licensed material or of required 
records, as required by 10 CFR 30.52; failed to control licensed 
material, as required by 10 CFR 20.1801 and 10 CFR 20.1802; and 
deliberately failed to notify the NRC of a missing or stolen source as 
required by 10 CFR 20.2201(a)(1)(i). It further concluded that the 
Licensee's Vice President, Mr. Hood, failed to control licensed 
material not in storage and deliberately failed to notify the NRC of a 
missing or stolen source. In addition, information developed during the 
investigation indicated that, although not named as an authorized user 
on the license, Mr. Hood used the moisture density gauge containing 
licensed material. Consequently, it was reasonable for the NRC to 
expect Mr. Hood to respond to questions concerning the Licensee's 
activities. During the investigation, numerous attempts were made to 
contact Mr. Hood in order to determine his responsibilities under the 
license and his responsibilities with regard to the identified 
violations. In this regard, the NRC issued a subpoena for Mr. Hood to 
appear at a compelled interview on September 16, 1998; requested an 
interview with Mr. Hood on September 22, 1998; subpoenaed Mr. Hood on 
November 4, 1999, to attend a compelled interview on December 3, 1999; 
and, by letter dated March 23, 2001, requested Mr. Hood to respond to 
the apparent violations in writing or to attend a predecisional 
enforcement conference to discuss the apparent violations identified 
during the investigation. Mr. Hood failed to respond to the subpoenas 
or to appear at the interviews, and did not respond to the letter dated 
March 23, 2001.
    This situation demonstrates a lack of regard for, and adherence to, 
NRC requirements and raises serious questions as to whether Mr. Hood 
will in the future adhere to NRC requirements.
    Therefore, further information is needed to determine whether the 
Commission can have reasonable assurance that in the future Mr. Hood 
will conduct licensed activities in accordance with the Commission's 
requirements.

III

    Accordingly, pursuant to sections 161b, 161c, 161o, 182, and 186 of 
the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR 2.204, the Commission requests that Mr. Hood 
submit the following information:
    1. A description of your responsibilities as Vice President of MPSA 
with regard to NRC licensed activities.
    2. An explanation as to whether or not you were an authorized user 
of the gauge.
    3. An explanation as to why you did not heed the subpoenas issued 
for compelled interviews on September 16, 1998, and December 3, 2000, 
or respond to the letter dated March 23, 2001, offering you an 
opportunity to respond to the apparent violation and to request a 
predecisional enforcement conference.
    4. A statement that demonstrates your commitment to compliance with 
regulatory requirements and sets forth the basis for why the Commission 
should have confidence that you will comply with applicable NRC 
requirements in the future.
    You may provide any other information that you want the NRC to 
consider, including a statement as to whether you believe that the 
statements made in Section II are accurate. You may respond to this 
Demand for Information by filing a written answer under oath or 
affirmation or by setting forth your reasons why this Demand for 
Information should not have been issued if the requested information is 
not being provided. The response to this Demand for Information is to 
be submitted to the Director, Office of Enforcement, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, in writing and under oath 
or affirmation. Copies also shall be sent to the Assistant General 
Counsel for Materials Litigation and Enforcement at the same address, 
and to the Regional Administrator, NRC Region II, 61 Forsyth St. SW, 
Suite 23T85, Atlanta, GA 30303-8931. The response should be sent 30 
days from the date of this Demand for Information if your current 
employment is involved in NRC-licensed activities or within 20 days of 
acceptance of an employment offer involving NRC-licensed activities or 
your becoming involved in NRC-licensed activities for five years from 
the date of this Demand for Information. 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.
    Upon review of your answer the Commission may institute a 
proceeding pursuant to 10 CFR 2.202 or take such other action as may be 
necessary to ensure compliance with regulatory requirements. Your 
response to the Demand for Information will be considered before a 
decision is made in this matter.
    If you choose to respond, your response will be made available 
electronically for public inspection in the NRC Public Document Room or 
from the Publicly Available Records (PARS) component of NRC's document 
system (ADAMS). ADAMS is accessible from the NRC Web site at http://www.nrc.gov/NRC/ADAMS/index.html (the Public Electronic Reading Room). 
Therefore, to the extent possible, it should not include any personal 
privacy, proprietary, or safeguards information so that it can be made 
available to the Public without redaction. If personal privacy or 
proprietary information is necessary to provide an acceptable response, 
then please provide a bracketed copy of your response that identifies 
the information that should be protected and a redacted copy of your 
response that deletes such information. If you request withholding of 
such material, you must specifically identify the portions of your 
response that you seek to have withheld and provide in detail the bases 
for your claim of withholding (e.g., explain why the disclosure of 
information will create an unwarranted invasion of personal privacy or 
provide the information required by 10 CFR 2.790(b) to support a 
request for withholding confidential commercial or financial 
information). If safeguards information is necessary to provide an 
acceptable response, please provide the level of protection described 
in 10 CFR 73.21.

    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. 01-24335 File 9-27-01; 8:45 am]
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