[Federal Register Volume 67, Number 66 (Friday, April 5, 2002)]
[Notices]
[Pages 16457-16459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8244]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 71-0122, Approval No. 0122 EA-01-164]


In the Matter of J.L. Shepard & Associates, San Fernando, CA; 
Confirmatory Order Relaxing Order (Effective Immediately)

I

    J.L. Shepherd & Associates (JLS&A) was the holder of Quality 
Assurance (QA) Program Approval for Radioactive Material Packages No. 
0122 (Approval No. 0122), issued by the U.S. Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR part 71, subpart H. 
QA activities authorized by Approval No. 0122 include: design, 
procurement, fabrication, assembly, testing, modification, maintenance, 
repair, and use of transportation packages subject to the provisions of 
10 CFR part 71. Approval No. 0122 was originally issued January 17, 
1980. In addition to having a QA program approved by the NRC to satisfy 
the provisions of 10 CFR part 71, subpart H, to transport or deliver 
for transport licensed material in a package, JLS&A is required by 10 
CFR part 71, Subpart C, to have and comply with the package's 
Certificate of Compliance (CoC) issued by the NRC. Based on JLS&A's 
failure to comply with 10 CFR part 71, QA Program Approval No. 0122 was 
withdrawn, by the immediately effective NRC Order, dated July 3, 2001, 
(66 FR 36603, July 12, 2001).

II

    The NRC lacked confidence that JLS&A would implement the QA Program 
approved by the NRC in accordance with 10 CFR part 71, Subpart H, in a 
manner that would assure the required preparation and use of 
transportation packages in full conformance with the terms and 
conditions of an NRC CoC and with 10 CFR part 71. JLS&A's QA Approval 
No. 0122 was withdrawn by an immediately effective Order issued July 3, 
2001, (July 2001 Order).
    By letters dated August 16, and September 13, 2001, JLS&A responded 
to the July 2001 Order, and requested

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that provisions of the Order be relaxed based on a showing of good 
cause. Specifically, JLS&A requested interim relief from the July 2001 
Order based on JLS&A's proposed Near-Term Corrective Action Plan, to 
allow 68 shipments to 16 customers, in U.S. Department of 
Transportation specification packaging designated as 20WC. The NRC 
issued a Confirmatory Order Relaxing Order, dated September 19, 2001 
(66 FR 49708, September 28, 2001), granting interim relief to allow 68 
shipments to 16 customers in 20 WC packages in accordance with JLS&A's 
Near-Term Corrective Action Plan, through March 2002, provided JLS&A's 
satisfactory completion of certain commitments.
    By letters dated December 7 and 10, 2001, JLS&A requested that 
provisions of the July 2001 Order be relaxed based on a showing of good 
cause. Specifically, JLS&A requested interim relief to ship an 
irradiator to Surry Nuclear Power Station and return the replaced unit 
to JLS&A's facility in California. JLS&A proposed to use the Near-Term 
Corrective Action Plan specified in the September 19, 2001, 
Confirmatory Order to allow these two shipments in U.S. Department of 
Transportation specification packaging designated as 20WC. The NRC 
issued a Confirmatory Order Relaxing Order dated December 13, 2001 (66 
FR 67556, December 31, 2001), granting interim relief to allow two 
shipments to one customer in 20 WC packages in accordance with JLS&A's 
Near Term Corrective Action Plan, provided JLS&A's satisfactory 
completion of certain commitments.

III

    By letters dated February 26, 2002, as supplemented March 13, 18, 
and 25, 2002, JLS&A requested that provisions of the July 2001 Order be 
further relaxed based on a showing of good cause. Specifically, JLS&A 
requested an extension of the shipment period authorized in the 
September 19, 2001, Order from March 31, 2002, to June 30, 2002, to 
allow JLS&A to complete shipment of Type B quantities of radioactive 
material in U. S. Department of Transportation 20WC specification 
packaging that was authorized by the September 19, 2001, Order. This 
extension of the expiration date is necessary since many of the 
customers did not obtain the necessary licensing approvals or to 
complete needed facility modifications to possess the radioactive 
material in time for the shipments to be completed by March 31, 2002. 
In addition, JLS&A requested authorization to make additional shipments 
to customers not approved by the September 19, 2001, Order. JLS&A 
proposes to use the Near-Term Corrective Action Plan specified in the 
September 19, 2001, Confirmatory Order. JLS&A committed to: (1) Inspect 
the 20WC package (both shield and overpack); (2) document the 
inspection in a separate report; (3) perform the shipping and 
inspection function only by trained personnel; and (4) have the 
Independent Auditor verify compliance of each shipment with the 
foregoing commitments and certify such compliance in the monthly 
reports to the NRC.
    In addition, on February 26, 2002, JLS&A consented to issuance of 
this Confirmatory Order granting interim relief from the July 2001 
Order subject to the foregoing commitments, as set forth in Section IV 
below, and agreed that this Confirmatory Order is to be effective upon 
issuance, and agreed to waive its right to a hearing on this action. 
Implementation of these commitments will provide assurance that 
sufficient resources will be applied to the QA program, and that the 
program will be conducted safely and in accordance with NRC 
requirements.
    I find that JLS&A's commitments as set forth in Section IV are 
acceptable and necessary and conclude that with these commitments the 
public health and safety are reasonably assured. The NRC staff reviewed 
JLS&A's relief request to determine whether to grant the requested 
relief with assurances that public health and safety are maintained. In 
view of the foregoing, I have determined that the public health and 
safety require that JLS&A's commitments be confirmed by this 
Confirmatory Order. This Confirmatory Order only grants additional time 
to complete the shipments previously authorized by the September 30, 
2001, Order. Based on the above and JLS&A's consent, this Confirmatory 
Order is effective immediately upon issuance.

IV

    Accordingly, pursuant to Sections 62, 81, 161b, 161i, 182 and 186 
of the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR Section 2.202 and 10 CFR parts 71 and 110, it is 
hereby ordered, effective immediately, that the July 3, 2001, order is 
relaxed to grant interim relief, through June 30, 2002, to complete 
shipments to customers previously authorized by the September 30, 2001 
order and identified in enclosure 1 to the March 14, 2002 supplement 
entitled ``NT-CAP1: Shipments Contracted for Prior to July 3, 2001'', 
in accordance with JLS&As near-term corrective action plan, provided:
    1. JLS&A uses the implementing procedures for the 1995 QA program 
plan, as revised, and the Near-Term Corrective Action Plan to complete 
an inspection of the 20WC packages involved in the shipments. The 
inspection will confirm that the packages and associated procedures are 
in conformance with 49 CFR 178.362, ``Specification 20WC wooden 
protective jacket.'' Each inspection will include, at a minimum, actual 
physical measurements, and visual inspections for damage, corrosion, or 
other potentially unacceptable conditions;
    2. JLS&A documents the results of each inspection in separate 
reports approved by the QA Administrator and prepared in accordance 
with the revised 1995 QA program plan and implementing procedures. The 
report will include the list of attributes verified, the acceptance 
criteria, and the results for each attribute;
    3. JLS&A uses JLS&A's staff, contractors, and sub-contractors, 
trained in the Near-Term Corrective Action Plan and the revised 1995 QA 
program plan and implementing procedures for conducting the inspections 
listed in the above condition; and,
    4. JLS&A uses the Independent Auditor to ensure that the three 
conditions listed above have been completed. Additionally, the 
Independent Auditor shall conduct monthly QA program audits and will 
provide NRC with a report by the 20th of each month. The Independent 
Auditor shall verify the compliance of each shipment with the three 
Conditions listed above and certify to the Commission in its monthly 
reports.
    The Director, Office of Enforcement, or the Director, Office of 
Nuclear Material Safety and Safeguards, may in writing, relax or 
rescind this Confirmatory Order upon demonstration of good cause by the 
JLS&A.

V

    In accordance with 10 CFR 2.202, any person, other than JLS&A, 
adversely affected by this Confirmatory Order may request a hearing 
within 20 days of its issuance.
    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. Any request for a hearing shall be 
submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN: 
Rulemakings and Adjudications Staff, Washington, DC

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20555. Copies of the hearing request also should be sent to the 
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555, to the Director, Office of Nuclear Material 
Safety and Safeguards at the same address, to the Assistant General 
Counsel for Materials Litigation and Enforcement at the same address, 
to the Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, 
Suite 400, Arlington, TX 76011, and to JLS&A. If such person requests a 
hearing, that person shall set forth with particularity the manner in 
which his or her interest is adversely affected by this Confirmatory 
Order and shall address the criteria set forth in 10 CFR 2.714(d).
    If a hearing is requested by 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 Confirmatory 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 Confirmatory 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.
    A request for hearing shall not stay the immediate effectiveness of 
this confirmatory order.

    Dated this 29th day of March 2002.

    For the Nuclear Regulatory Commission.
James G. Luehman,
Deputy Director, Office of Enforcement.
[FR Doc. 02-8244 Filed 4-4-02; 8:45 am]
BILLING CODE 7590-01-P