[Federal Register Volume 67, Number 117 (Tuesday, June 18, 2002)]
[Notices]
[Pages 41531-41532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15287]


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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Program Approval No. 0122 was withdrawn by the immediately effective 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 
on several occasions, 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), March 29, 2002, 
(67 FR 16457, April 5, 2002), and April 26, 2002, (67 FR 22462, May 3, 
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

    By letters dated February 26, 2002, as supplemented March 13, 18, 
and 25, 2002, 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. NRC withheld a decision on this part of the JLS&A 
request until after a pre-decisional enforcement conference was held 
with JLS&A. This Order represents NRC's final decision on JLS&A's 
February 26, 2002, request.
    In addition, on May 23, 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 and JLS&A's safety performance under the above 
mentioned relaxation Orders, to determine whether to grant the 
requested relief with assurances that public health and safety are 
maintained. Furthermore, the NRC staff has recommended that an 
extension of JLS&A's request is warranted. 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 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 JLS&A Interim Relief, To Complete shipments in 20WCs 
to or From Any Customer, Until May 31, 2003, 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;

[[Page 41532]]

    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 conditions;
    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 quarterly QA 
program audits and will provide NRC with a report by the 20th of the 
month following the quarter. The Independent Auditor shall verify the 
compliance of each shipment with the three Conditions listed above and 
certify to the Commission in its quarterly reports and,
    5. JLS&A will stop all shipping operations if the audit conducted 
by the Independent Auditor identifies significant safety concerns 
associated with the JLS&A conduct of shipping operations. In such an 
event, JLS&A shall inform the NRC of the audit findings and JLS&A 
proposed corrective actions within 3 business days of the 
identification of the audit findings to JLS&A by the Independent 
Auditor. JLS&A will suspend all shipping operation until the safety 
concerns are corrected and the Independent Auditor has found the 
corrective action acceptable. The Independent Auditor will inform NRC 
of the audit findings, JLS&A corrective actions, and the results of the 
Independent Auditor's review of the corrective actions in its quarterly 
audits.
    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 
JLS&A.

V

    In accordance with 10 CFR Section 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 Section 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 6th day of June 2002.

    For the Nuclear Regulatory Commission.
Frank J. Congel,
Director, Office of Enforcement.
[FR Doc. 02-15287 Filed 6-17-02; 8:45 am]
BILLING CODE 7590-01-P