[Federal Register Volume 72, Number 236 (Monday, December 10, 2007)]
[Notices]
[Pages 69714-69716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23904]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 030-37435; License No. 09-31230-01; EA-07-101, 07-104]
In the Matter of MC Squared, Inc., Tampa, FL; Order Imposing
Civil Monetary Penalty
I
MC Squared, Inc. (licensee) is the holder of a materials license
issued by the State of Florida, an NRC Agreement State. Most of the
licensee's work is conducted under the State's jurisdiction. MC
Squared, Inc. also obtained license No. 09-31230-01 (license) issued by
the Nuclear Regulatory Commission (NRC or Commission) on April 5, 2007.
This license expires on April 30, 2017. The license authorizes the
licensee to possess and use certain byproduct materials in accordance
with the conditions specified therein.
II
Although MC Squared, Inc. possessed an Agreement State license from
the State of Florida, the NRC inspected and processed enforcement
against the licensee because their temporary job site, which was
located at the Seminole Tribe Indian Reservation, is under NRC
jurisdiction. The inspection of the licensee's activities at the
temporary job site in Clewiston, Florida, was completed on March 29,
2007.
The results of this inspection concluded that the licensee had not
conducted its activities in full compliance with NRC requirements. A
written Notice of Violation and Proposed Imposition of Civil Penalty
(Notice) was served upon the licensee by letter dated September 13,
2007. The Notice states the nature of the violations, the provision of
the NRC's requirements that the licensee violated, and the amount of
the civil penalty proposed for the violations. The licensee responded
to the Notice in a letter dated October 11, 2007. In its response, the
licensee requested that the NRC negate or significantly reduce the
civil penalty.
III
After consideration of the licensee's response and argument for
mitigation contained therein, the NRC has determined, the violations
occurred as stated in the Notice, that the licensee did not provide an
adequate basis for negating or significantly reducing the civil
penalty, and that the penalty proposed for the violations designated in
the Notice should be imposed.
IV
In view of the foregoing and pursuant to the Atomic Energy Act of
1954, as amended, Sec. 234, 42 U.S.C. 2282 (1988) (``Act''), and 10
CFR 2.205, it is hereby ordered that:
MC Squared, Inc. pay a civil penalty in the amount of $3,250
within 30 days of the date of this Order, in accordance with NUREG/
BR-0254. In addition, at the time payment is made MC Squared, Inc.
shall submit a statement indicating when and by what method payment
was made, to the Director, Office of Enforcement, U.S. Nuclear
Regulatory Commission, One White Flint North, 11555 Rockville Pike,
Rockville, MD 20852-2738.
V
In accordance with 10 CFR 2.202, MC Squared, Inc. must, and any
other person adversely affected by this Order may, submit an answer to
this Order within 20 days of the date of this Order. In addition, the
licensee and any other person adversely affected by this Order may
request a hearing on this Order within 20 days of the date of this
Order. Where good cause is shown, consideration will be given to
extending the time to answer or 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, and include a
statement of good cause for the extension.
The answer shall, under oath or affirmation, specifically admit or
deny each allegation or charge made in this Order and shall set forth
the matters of fact and law on which the licensee or other person
relies, and, if the order is not consented to, the reasons as to why
the order should not have been issued. The answer may also demand a
hearing.
A request for a hearing must be filed in accordance with the NRC E-
Filing rule, which became effective on October 15, 2007. The NRC E-
Filing Final Rule was issued on August 28, 2007 (72 Fed. Reg. 49,139),
and codified in pertinent part at 10 CFR Part 2, Subpart B. The E-
Filing process requires participants to submit and serve documents over
the internet or, in some cases, to mail copies on electronic optical
storage media. Participants may not submit paper copies of their
filings unless they seek a waiver in accordance with the procedures
described below.
If a person other than the licensee requests a hearing, that person
shall set forth with particularity the manner in which his interest is
adversely affected by this Order and shall address the criteria set
forth in 10 CFR 2.309(d).
If a hearing is requested by a licensee or a person whose interest
is adversely affected, the Commission will issue an Order designating
the time and place of any hearings. If a hearing is held, the issue to
be considered at such hearing shall be whether this 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 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
[[Page 69715]]
be final when the extension expires if a hearing request has not been
received. If payment has not been made by that time, the matter may be
referred to the Attorney General, for collection. In the event the
licensee requests a hearing as provided above, the issues to be
considered at such hearing shall be:
(a) Whether the licensee was in violation of the Commission's
requirements as set forth in violations of the Notice referenced in
Section II above, and
(b) whether, on the basis of such violations and the additional
violations set forth in the Notice of Violation that the licensee
admitted, this Order should be sustained.
To comply with the procedural requirements associated with E-
Filing, at least five (5) days prior to the filing deadline the
requestor must contact the Office of the Secretary by e-mail at
[email protected] or by calling (301) 415-1677, to request (1) a
digital ID certificate, which allows the participant (or its counsel or
representative) to digitally sign documents and access the E-Submittal
server for any NRC proceeding in which it is participating; and/or (2)
creation of an electronic docket for the proceeding (even in instances
when the requestor (or its counsel or representative) already holds an
NRC-issued digital ID certificate). Each requestor will need to
download the Workplace Forms Viewer\TM\ to access the Electronic
Information Exchange (EIE), a component of the E-Filing system. The
Workplace Forms Viewer\TM\ is free and is available at http://www.nrc.gov/site-help/e-submittals/install-viewer.html. Information
about applying for a digital ID certificate also is available on NRC's
public Web site at http://www.nrc.gov/site-help/e-submittals/apply-certificates.html.
Once a requestor has obtained a digital ID certificate, had a
docket created, and downloaded the EIE viewer, it can then submit a
request for a hearing through EIE. Submissions should be in Portable
Document Format (PDF) in accordance with NRC guidance available on the
NRC public Web site at http://www.nrc.gov/site-help/e-submittals.html.
A filing is considered complete at the time the filer submits its
document through EIE. To be timely, electronic filings must be
submitted to the EIE system no later than 11:59 p.m. Eastern Time on
the due date. Upon receipt of a transmission, the E-Filing system time-
stamps the document and sends the submitter an e-mail notice confirming
receipt of the document. The EIE system also distributes an e-mail
notice that provides access to the document to the NRC Office of the
General Counsel and any others who have advised the Office of the
Secretary that they wish to participate in the proceeding, so that the
filer need not serve the document on those participants separately.
Therefore, any others who wish to participate in the proceeding (or
their counsel or representative) must apply for and receive a digital
ID certificate before a hearing request is filed so that they may
obtain access to the document via the E-Filing system.
A person filing electronically may seek assistance through the
``Contact Us'' link located on the NRC Web site at http://www.nrc.gov/site-help/e-submittals.html or by calling the NRC technical help line,
which is available between 8:30 a.m. and 4:15 p.m., Eastern Time,
Monday through Friday. The help line number is (800) 397-4209 or
locally, (301) 415-4737.
Participants who believe that they have good cause for not
submitting documents electronically must file a motion, in accordance
with 10 CFR 2.302(g), with their initial paper filing requesting
authorization to continue to submit documents in paper format. Such
filings must be submitted by (1) first class mail addressed to the
Office of the Secretary of the Commission, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, Attention: Rulemaking and
Adjudications Staff; or (2) courier, express mail, or expedited
delivery service to the Office of the Secretary, Sixteenth Floor, One
White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852,
Attention: Rulemaking and Adjudications Staff. Participants filing a
document in this manner are responsible for serving the document on all
other participants. Filing is considered complete by first-class mail
as of the time of deposit in the mail, or by courier, express mail, or
expedited delivery service upon depositing the document with the
provider of the service.
Documents submitted in adjudicatory proceedings will appear in
NRC's electronic hearing docket which is available to the public at
http://ehd.nrc.gov/EHD_Proceeding/home.asp, unless excluded pursuant
to an order of the Commission, an Atomic Safety and Licensing Board, or
a Presiding Officer. Participants are requested not to include personal
privacy information, such as social security numbers, home addresses,
or home phone numbers in their filings. With respect to copyrighted
works, except for limited excerpts that serve the purpose of the
adjudicatory filings and would constitute a Fair Use application,
participants are requested not to include copyrighted materials in
their works.
For the Nuclear Regulatory Commission.
Dated this 30th day of November, 2007.
Cynthia A. Carpenter,
Director, Office of Enforcement.
Appendix--Evaluations and Conclusion
On September 13, 2007, a Notice of Violation and Proposed
Imposition of Civil Penalty (Notice) was issued to MC Squared
(MC\2\), Inc. (Licensee) for two violations identified during the
NRC review of the circumstances associated with the theft of a
portable nuclear density gauge containing licensed material
(ML072560013). The theft occurred sometime between March 2 and March
7, 2007. The licensee responded to the Notice in a letter dated
October 11, 2007 (ML073030076). The licensee requested that the NRC
negate or significantly reduce the proposed civil penalty. The NRC's
evaluation and conclusion regarding the licensee's requests are
contained herein.
Restatement of the Violations
A. 10 CFR 150.20(b) requires, in part, that an Agreement State
licensee shall, at least three days prior to engaging in each
licensed activity within NRC jurisdiction for the first time in a
calendar year, file a submittal with the NRC containing an NRC Form
241, a copy of its Agreement State specific license, and the
appropriate fee as prescribed in 10 CFR 170.31.
Contrary to the above, the licensee failed to file NRC Form 241
at least three days prior to engaging in licensed activities within
NRC jurisdiction. Specifically, from January 1, 2006, through at
least March 12, 2007, the licensee stored or used a Troxler Model
3411-B portable gauge containing byproduct material (americium-241
and cesium-137) at two Indian Reservations located in the State of
Florida, sites that are within NRC jurisdiction, and did not file
NRC Form 241 prior to using the material at these sites.
B. 10 CFR 30.34(i) requires that each portable gauge licensee
use a minimum of two independent physical controls that form
tangible barriers to secure portable gauges from unauthorized
removal, whenever portable gauges are not under the control and
constant surveillance of the licensee.
Contrary to the above, between March 2, 2007 and March 7, 2007,
at a job site on a Seminole Indian Reservation, in Clewiston,
Florida, the licensee did not use a minimum of two independent
physical controls that form tangible barriers to secure a Troxler
moisture/density gauge from unauthorized removal when the portable
gauge was not under the control and constant surveillance of the
licensee. Specifically, the licensee stored the gauge in a trailer
that was unlocked and in an unrestricted area when an authorized
user was not present. Although the gauge was in a locked container,
there were no physical controls that formed tangible barriers to
secure the gauge from unauthorized removal, because the gauge
container was not secured to the trailer, and access to the trailer
was not controlled. The licensee notified the NRC on March 7, 2007,
that the portable gauge had been stolen.
[[Page 69716]]
These two violations represent a Severity Level III problem
(Supplement VI). Civil Penalty--$3,250
Summary of the Licencee's Response Regarding the Violations
In its response, the licensee stated that it believed its
license in the State of Florida allowed it to use and store the
nuclear density gauge anywhere within Florida. The licensee stated
that it did not know that the Indian Reservations of the Seminole
Tribe of Florida are not under the State of Florida's jurisdiction
and that it was required to file for reciprocity or obtain a
separate license under NRC jurisdiction for storing and using a
portable gauge on an Indian Reservation. The licensee also stated it
immediately took corrective actions to file for a Federal license
and paid the required fees. Further, the licensee stated that the
management team understands the seriousness of the violations and
described the corrective actions immediately taken to ensure two
independent physical controls exist for securing the portable gauge
from unauthorized removal. The actions included having the RSO or a
member of the management team perform random checks to ensure the
method of protection is strictly adhered to.
NRC'S Evaluation of the Licensee's Response Regarding the
Violations
The NRC has evaluated the licensee's statements regarding the
violations. The NRC recognizes that these are the licensee's first
violations of this type and that corrective actions were taken
immediately to address the violations; however, not being aware that
the Indian Reservations of the Seminole Tribe of Florida are under
NRC jurisdiction is not a valid reason for not having filed for
reciprocity nor obtaining an NRC license. NRC may not cite the
licensee when a portable gauge is stolen under the condition that
the licensee was in full compliance with all regulatory requirements
regarding physical security, including the requirement to secure the
gauge with two independent physical controls that form tangible
barriers to secure the gauge from unauthorized removal. However,
MC\2\ was not in full compliance with all regulatory requirements
and therefore, an adequate basis did not exist to not cite the
violations.
Summary of Licensee's Request for Negation or Significant Reduction
of the Civil Penalty
In its response, the licensee requested negating or
significantly reducing the civil penalty, contending that specific
mitigating circumstances surrounding the violations should be
considered by the NRC, and that the fine will impose a significant
financial hardship on their small company. The mitigating
circumstances provided by the licensee included: (1) This is its
first violation; (2) it did not know the Indian Reservations are
separate entities; and, (3) immediate measures were taken to rectify
the situation and prevent future violations. The licensee noted that
the senior management team and the employees of MC\2\ are committed
to health and safety and place significant importance on supporting
their Radiation Safety Officer and providing the tools necessary to
achieve safe operation of nuclear devices.
NRC Evaluation of Licensee's Request for Negation or Signficant
Reduction of the Civil Penalty
In accordance with section VI.C.2 of the Enforcement Policy, the
base civil penalty amount for a Severity Level (SL) III violation
involving the loss of this type of radioactive material is $3,250.
The licensee, while contending that a financial loss occurred, did
not provide any evidence that payment of the civil penalty would
create a financial hardship. Also, while the NRC acknowledges that
the licensee took prompt and comprehensive corrective actions, a
civil penalty was nonetheless warranted, consistent with the NRC
Enforcement Policy, because the violation of 10 CFR 30.34(i)
contributed to the theft of a gauge containing radioactive material.
Issuance of this civil penalty is consistent with one of the
purposes of the Enforcement Policy, which is to deter noncompliance,
including for lost sources, by emphasizing to the licensee and other
licensees the importance of compliance with NRC safety and security
requirements. In addition, the NRC recognized that a contributing
factor for these two violations was that MC\2\ did not fully
understand the NRC regulations regarding 10 CFR 150.20(b) and 10 CFR
30.34(i). The NRC took this into consideration and processed the two
violations as one SL III problem, rather than citing two separate SL
III violations, which could have each been individually considered
for a civil penalty.
NRC Conclusion
The NRC has concluded that these violations occurred as stated
in the Notice and that an adequate basis was not provided by the
licensee for the NRC to negate or significantly reduce the civil
penalty. Consequently, the proposed civil penalty in the amount of
$3,250 should be imposed.
[FR Doc. E7-23904 Filed 12-7-07; 8:45 am]
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