[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Notices]
[Pages 79162-79163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32696]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 030-13573]


In the Matter of PermaGrain Products, Incorporated, 4789 West 
Chester Pike, Newtown Square, Pennsylvania, 19073; License Nos. 37-
17860-01, EA-02-260; Demand for Information

I

    PermaGrain Products, Inc. (the Licensee) is the holder of Byproduct 
Material License No. 37-17860-01 issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR part 30. The license 
authorizes the possession and use of 2,000,000 curies of cobalt 60 for 
the irradiation of materials other than explosives or corrosive 
materials. The license further authorizes an additional 5,000 curies of 
cobalt 60 for use in a NUMEC Model NRI-300A self-shielded irradiator 
for irradiation of materials. The license, originally issued on 
December 21, 1977, was last renewed on March 7, 1997, and is due to 
expire on March 31, 2007. The license permits use of material at the 
Licensee's facilities at Reactor Road, Karthaus, Pennsylvania. 
PermaGrain Products, Inc., leases the location from the Commonwealth of 
Pennsylvania, the owner of the site.

II

    On November 12, 2002, Dr. A. E. Witt, President of PermaGrain 
Products, Inc. informed the NRC that the Licensee was having financial 
difficulty and that it might declare bankruptcy. On November 13, 2002, 
Dr. Witt provided a letter to NRC Region I which made certain staffing 
and security commitments for the Karthaus facility that would continue 
until NRC was notified otherwise. Since that notification, PermaGrain 
was engaged in negotiations with a potential buyer which, if they had 
been successful, could have alleviated the Licensee's financial 
difficulties.
    On December 6, 2002, Jeffrey Kurtzman, counsel to PermaGrain 
Products, Inc. notified the NRC that the negotiations had not been 
successful. He also notified the NRC that the Licensee intended to file 
a voluntary petition pursuant to chapter 7 of title 11 of the United 
States Code (the ``Bankruptcy Code'') in the United States Bankruptcy 
Court of the Eastern District of Pennsylvania. On December 16, 2002, 
Mr. Kurtzman notified NRC of the Licensee's intention to file for 
bankruptcy on or about December 17, 2002.
    The NRC is concerned that PermaGrain's financial situation will not 
allow continued funding of activities that are essential to ensure 
radiological safety and security of licensed material present at the 
site. Therefore, further information is needed to determine whether the 
Commission can have reasonable assurance that in the future the 
Licensee will maintain security of licensed material as well as 
continued maintenance of the required safety features, including the 
security alarm system, ventilation system, appropriate water level in 
the pool, the demineralizer system, the heating system, electric and 
water supply in the facility, all of which are essential to ensure 
radiological safety at the premises.

III

    Accordingly, pursuant to sections 161c, 161o, 182 and 186 of the 
Atomic Energy Act of 1954, as amended, and the Commission's regulations 
in 10 CFR 2.204 and 10 CFR part 30, in order for the Commission to 
determine whether your licenses should be modified, suspended or 
revoked, or other enforcement action taken to ensure compliance with 
NRC regulatory requirements, the Licensee is required to submit to the 
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555, within 48 hours of the date of this Demand for 
Information, in writing and under oath or affirmation:
    A. 1. A written description of its plan to continue to provide 
security over and control access to the Karthaus site, in accordance 
with 10 CFR parts 20 and 36;
    2. A list of the essential services necessary to maintain radiation 
safety and security of the radioactive material on the site, and the 
Licensee's plan for continuation of these services. The list should 
include utilities, periodic maintenance and contract services, such

[[Page 79163]]

as a security alarm monitoring service. If the Licensee is unable to 
provide any of the essential services, the plan should include 
provisions for a third party to provide for the service(s), including 
providing the training necessary to adequately provide the service(s).
    B. In light of the findings set forth in section II of this demand 
for information, the Licensee shall provide to NRC a written plan for 
disposition of the cobalt 60 sources (including those in the self 
contained irradiator) in compliance with 10 CFR 30.36. The plan shall 
contain:
    1. A description of how the sources will be removed, packaged, 
transported and disposed of; and,
    2. A timetable for the transfer of all licensed material from the 
site to an authorized recipient.
    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 I, 475 Allendale Road, King of 
Prussia, Pennsylvania, 19406-1415.
    After reviewing your response, the NRC will determine whether 
further action is necessary to ensure compliance with regulatory 
requirements.

    Dated this 17th day of December, 2002.

For the Nuclear Regulatory Commission.
Frank J. Congel,
Director, Office of Enforcement.
[FR Doc. 02-32696 Filed 12-26-02; 8:45 am]
BILLING CODE 7590-01-P