[Federal Register Volume 67, Number 86 (Friday, May 3, 2002)]
[Notices]
[Pages 22462-22463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11024]



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NUCLEAR REGULATORY COMMISSION

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


In the Matter of J.L. Shepherd & 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. 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Program Approval No. 0122 was withdrawn, by the immediately effective 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 issued the July 3, 2001, Order (July 2001 Order) because 
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 Certificate of Compliance (CoC) and with 10 CFR 
part 71.
    Subsequent to the July 2001 Order, JLS&A requested interim relief 
from the July 2001 Order based on JLS&A's proposed Near-Term Corrective 
Action Plan, to allow shipments, in U.S. Department of Transportation 
specification packaging designated as 20WC. Based on a showing of good 
cause the NRC issued Confirmatory Orders dated September 19, 2001, (66 
FR 49708, September 28, 2001), December 13, 2001, (66 FR 67556, 
December 31, 2001), and March 29, 2002, (67 FR 16457, April 5, 2002), 
which relaxed the July 2001 Order by granting interim relief to allow 
specific shipments to identified customers in 20WC packages in 
accordance with JLS&A's Near-Term Corrective Action Plan, provided 
JLS&A satisfactorily completed certain commitments.

III

    On April 16, 2002, JLS&A requested that the July 2001 Order be 
further relaxed based on a showing of good cause. Specifically, JLS&A 
requested permission to proceed with urgently needed shipments to and 
from the University of North Carolina, the City of Hope National 
Medical Center, and Duke and Baylor Universities in the Department of 
Transportation specification packaging designated as 20WC in accordance 
with JLS&A's Near-Term Corrective Action Plan. If JLS&A cannot perform 
its contractual obligations it advises that it stands to lose its 
anticipated revenue, and additionally that the two research 
institutions will lose grants and Duke and Baylor Universities will 
lose federal funds to remove obsolete calibrators. These shipments were 
previously identified in a request for permission to ship to an 
expanded listing of customers identified in JLS&A's February 26, 2002, 
letter, as supplemented, which is pending before the NRC. JLS&A 
proposes to use its Near-Term Corrective Action Plan specified in the 
March 29, 2002, Confirmatory Order for the shipments to and from the 
two research institutions, and Duke and Baylor Universities. 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, 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 good cause exists to relax the July 2001 Order to allow 
the limited number of shipments requested and 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. 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 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, to complete shipments to and from the 
University of North Carolina and the City of Hope National Medical 
Center, and Duke and Baylor Universities, in accordance with JLS&A'S 
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 an Independent Auditor, approved by the Commission, 
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

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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 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 26th day of April, 2002.

    For the Nuclear Regulatory Commission.
Frank J. Congel,
Director, Office of Enforcement.

[FR Doc. 02-11024 Filed 5-2-02; 8:45 am]
BILLING CODE 7590-01-P