[Federal Register Volume 74, Number 43 (Friday, March 6, 2009)]
[Notices]
[Pages 9833-9836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4761]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 030-32023; License No. 42-27055-01; EA-08-261; NRC-2009-
0101]


In the Matter of Schlumberger Technology Corporation, Sugar Land, 
TX; Confirmatory Order Modifying License; Effective Immediately

I

    Schlumberger Technology Corporation (Schlumberger or Licensee) is 
the holder of Materials License No. 42-27055-01 issued by the Nuclear 
Regulatory Commission (NRC or Commission) pursuant to 10 CFR Part 30 on 
November 29, 1989, last amended on May 1, 2006, and due to expire on 
December 31, 2015. The license authorizes Schlumberger to possess and 
use sealed sources for use in conducting density measurements in 
accordance with conditions specified therein. The license authorizes 
use at specified field stations located in the States of Alaska, 
Virginia, West Virginia, and Wyoming. The license also authorizes use 
at temporary job sites of the licensee anywhere in the United States 
where the Commission maintains jurisdiction for regulating the use of 
licensed material.

II

    In accordance with NRC protocols, on October 4, 2007, Schlumberger 
timely reported the loss of a fluid density gauge containing licensed 
material from its Rock Springs, Wyoming, facility. After identifying 
and reporting the missing gauge, Schlumberger took extensive actions in 
an attempt to find the gauge and conducted a thorough investigation 
into the circumstances surrounding the lost gauge. The gauge was not 
located. Schlumberger timely filed its written report pursuant to 10 
CFR 20.2201 on November 15, 2007.
    On January 29, 2008, the NRC conducted an inspection to review the 
circumstances related to Schlumberger's October 4, 2007, report of a 
lost fluid density gauge containing licensed material. Following that, 
on March 3, 2008, the NRC Office of Investigations (OI) began an 
investigation (OI Case No. 4-2008-031) of Schlumberger Technology 
Corporation. The investigation was conducted, in part, to determine if 
a Radiation Safety Officer (RSO) employed by Schlumberger at the Rock 
Springs, Wyoming, field station willfully falsified inventory 
documents. Based on the results of the inspection and investigation, 
the NRC determined that two apparent violations of NRC requirements 
occurred. The apparent violations involved failures to maintain 
required records complete and accurate as required by 10 CFR 30.9, and 
to maintain control over licensed material as required by 10 CFR 
20.1802. The NRC also was concerned that the apparent failure to 
maintain required records complete and accurate as required by 10 CFR 
30.9 might have resulted from deliberate misconduct on the part of the 
RSO at Schlumberger's Rock Springs, Wyoming, field station.
    By letter dated December 1, 2008, the NRC transmitted the results 
of the inspection and investigation to Schlumberger Technology 
Corporation. In the December 1, 2008, letter, the NRC offered 
Schlumberger the opportunity to respond to the apparent violations, 
request a predecisional enforcement conference, or request Alternative 
Dispute Resolution (ADR) with the NRC in an attempt to resolve issues 
associated with this matter. In response, on December 5, 2008, 
Schlumberger requested ADR to resolve this matter with the NRC.
    On January 22, 2009, the NRC and Schlumberger Technology 
Corporation met in an ADR session mediated by a professional mediator, 
arranged through Cornell University's Institute on Conflict Resolution. 
ADR is a process in which a neutral mediator, with no decision-making 
authority, assists the parties in reaching an agreement on resolving 
any differences regarding the dispute. This confirmatory order is 
issued pursuant to the agreement reached during the ADR process.

III

    The January 22, 2009, ADR session between the NRC and Schlumberger 
was held in Arlington, Texas, in the NRC Region IV offices. During that 
ADR session, an Agreement in Principle was reached. The elements of the 
agreement consisted of the following:

[[Page 9834]]

    1. The NRC acknowledges that Schlumberger identified a missing 
gauge and reported it to the NRC, and in addition, the NRC acknowledges 
that Schlumberger took extensive actions in an attempt to find the 
gauge and conducted a thorough investigation into the circumstances 
surrounding the lost gauge. However, the gauge was not found.
    2. Within 180 days of the date of this order, Schlumberger will 
develop and implement a program that requires well site supervisors to 
ensure licensed material is accounted for and secured at temporary job 
sites.
    3. Within 180 days of the date of this order, Schlumberger will 
develop and implement a program that requires line managers to review 
security and accountability of licensed material assigned to their 
operating locations (base and temporary job sites).
    4. Schlumberger's corporate radiation safety staff will conduct 
annual radiation safety audits at the Rock Springs, Wyoming, field 
station through calendar year 2010. This shall include audits of 
temporary job sites that will include, but not be limited to, 
compliance with security and transportation regulations associated with 
licensed radioactive material.
    5. Within 180 days of the date of this order, Schlumberger will 
develop and implement a required annual training program that describes 
the requirements in 10 CFR 30.9 and 10 CFR 30.10 to employees using 
licensed material. This training is to include the potential 
consequences individuals may experience for violations of 10 CFR 30.10. 
This training will be included in Schlumberger's initial training 
program.
    6. Within 90 days of the date of this order, Schlumberger will 
submit a license amendment request, for Materials License No. 42-27055-
01, to incorporate the changes to its inventory procedure, to include 
the photographic inventory process.
    7. The NRC agrees not to pursue any further enforcement action 
against Schlumberger in connection with the NRC's December 1, 2008, 
Inspection Report 030-32023/08-001 issued to Schlumberger and will not 
count this matter as previous enforcement for the purposes of assessing 
potential future enforcement action civil penalty assessments in 
accordance with Section VI.C of the Enforcement Policy. The NRC, 
however, will evaluate Schlumberger's compliance with this confirmatory 
order; and consider enforcement action for any violations identified, 
as appropriate.
    8. In consideration of the extensive actions taken and the 
additional actions to be taken by Schlumberger, the NRC will issue a 
civil monetary penalty only in the base amount of $3250. Schlumberger 
will pay the civil penalty within 30 days of the effective date of this 
order.
    9. The NRC acknowledges the extensive actions taken by 
Schlumberger, which include:
     In 2005, Schlumberger started a program entitled, ``U.S. 
Compliance Audits,'' to conduct audits every 3 years of each field 
station by a corporate team of experts. These audits include temporary 
job sites.
     Schlumberger's local site personnel conduct annual self-
assessments of various programs, including the radiation safety 
program.
     There is a pre-existing Schlumberger code of ethics which 
includes a tiered approach on discipline. Management involvement is 
included in the process. Employees are given mechanisms to identify and 
report perceived non-conformances.
     Photographic inventories of licensed material are 
conducted at least annually. Schlumberger's business system generates a 
random, 6-digit number on a monthly basis that must be in the 
photograph to ensure the inventory occurs in a given month.
     Confirmation inventories of licensed radioactive material 
are conducted every 3 months.
     Third-party leak test analysis results are provided to the 
corporate radiation safety office for review.
     Training has been provided to Schlumberger's U.S. 
employees, who work with licensed materials, on the legal ramifications 
of willful failures to follow NRC regulations.
     Training has been provided to Schlumberger's Rock Springs, 
Wyoming, personnel on security for transport and shipping requirements. 
This training was conducted in December 2007 and January 2008.
     Training has been provided to Schlumberger's U.S. 
employees on radiation safety and control of licensed material. This 
training was conducted during the first quarter of 2008.
     World-wide training on security and control of gauges and 
inventory controls (photographic inventory) was conducted.
     A Quality Health Safety and Environment alert was issued 
within the company describing the circumstances surrounding the event 
related to Schlumberger's October 4, 2007, report of a lost fluid 
density gauge, and discussing the importance of the security of 
licensed material. This alert went out to site management located in 
the United States and Canada.
     Procedural changes were made on how and where licensed 
materials are stored at Schlumberger's Rock Springs, Wyoming, field 
station. An enhanced security system is now in place at Rock Springs, 
Wyoming.
    It was noted in the agreement that the NRC concluded that two 
violations of NRC requirements occurred. The violations involved: (1) A 
failure to maintain control over licensed material occurred, which 
constitutes a violation of 10 CFR 20.1802, and (2) a site RSO at 
Schlumberger's field station located at Rock Springs, Wyoming, 
deliberately failed to provide complete and accurate information on the 
records documenting physical inventories, which constitutes a violation 
of 10 CFR 30.9. The NRC acknowledges that Schlumberger does not concede 
that any violations occurred.
    On February 23, 2009, the Licensee consented to issuing this Order 
with the commitments, as described in Section V below. The Licensee 
further agreed that this Order is to be effective upon issuance and 
that it has waived its right to a hearing.

IV

    Since the licensee has agreed to take additional actions to address 
NRC concerns, as set forth in Item III above, the NRC has concluded 
that its concerns can be resolved through issuance of this Order.
    I find that the Licensee's commitments as set forth in Section V 
are acceptable and necessary and conclude that with these commitments 
the public health and safety are reasonably assured. In view of the 
foregoing, I have determined that public health and safety require that 
the Licensee's commitments be confirmed by this Order. Based on the 
above and the Licensee's consent, this Order is immediately effective 
upon issuance.
    Accordingly, pursuant to Sections 81, 161b, 161i, 161o, 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 20 and 30 it is hereby 
ordered, effective immediately, that License No. 42-27055-01 is 
modified as follows:
    1. Within 180 days of the effective date of this order, 
Schlumberger will develop and implement a program that requires well 
site supervisors to ensure licensed material is accounted for and 
secured at temporary job sites.
    2. Within 180 days of the effective date of this order, 
Schlumberger will develop and implement a program that requires line 
managers to review security and accountability of licensed

[[Page 9835]]

material assigned to their operating locations (base and temporary job 
sites).
    3. Schlumberger's corporate radiation safety staff will conduct 
annual radiation safety audits at the Rock Springs, Wyoming, field 
station through calendar year 2010. This shall include audits of 
temporary job sites that will include, but not be limited to, 
compliance with security and transportation regulations associated with 
licensed radioactive material.
    4. Within 180 days of the effective date of this order, 
Schlumberger will develop and implement a required annual training 
program that describes the requirements in 10 CFR 30.9 and 10 CFR 30.10 
to employees using licensed material. This training is to include the 
potential consequences individuals may experience for violations of 10 
CFR 30.10. This training will be included in Schlumberger's initial 
training program.
    5. Within 90 days of the effective date of this order, Schlumberger 
will submit a license amendment request, for Materials License No. 42-
27055-01, to incorporate the changes to its inventory procedure, to 
include the photographic inventory process.
    6. Within 30 days of the effective date of this order, Schlumberger 
Technology Corporation must pay the civil penalty of $3,250 in 
accordance with NUREG/BR-0254 and submit to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
a statement indicating when and by what method payment was made.
    7. Schlumberger shall continue the following actions:
     ``U.S. Compliance Audits'' shall be conducted every 3 
years at each field station by a corporate team of experts. These 
audits will include temporary job sites.
     Annual self-assessments shall be conducted by site 
personnel. These self-assessments include the radiation safety program.
     Schlumberger will maintain its pre-existing code of 
ethics, which includes a tiered approach on discipline.
     Confirmation inventories of licensed radioactive material 
shall be conducted every 3 months.
     Third-party leak test analysis results shall be provided 
to the corporate radiation safety office for review.
     The enhanced security system shall remain in place at 
Schlumberger's Rock Springs, Wyoming, field station, provided that 
licensed material is used or stored therein.
    The license, which is the subject of this order, is modified in 
accordance with the requirements of the order. As such, in the event of 
the transfer of Materials License No. 42-27055-01 held by Schlumberger 
Technology Corporation, by the virtue of the sale (of the facility or 
the license holder), merger, bankruptcy, agreement or otherwise, the 
requirements of this confirmatory order shall survive any such transfer 
and shall be binding on the new license holder.
    The Regional Administrator, NRC Region IV, may, in writing, relax 
or rescind any of the above conditions upon demonstration by the 
Licensee of good cause.

VI

    Any person adversely affected by this Confirmatory Order, other 
than the Licensee, 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 directed to the Director, Office of Enforcement, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, and include a 
statement of good cause for the extension.
    A request for a hearing must be filed in accordance with the NRC E-
Filing rule, which the NRC promulgated in August 2007, 72 FR 49,139 
(Aug. 28, 2007). 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.
    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 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

[[Page 9836]]

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.
    If a person other than Schlumberger Technology Corporation 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) and (f).
    If the 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 V 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 V 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 order.

    Dated this 24th day of February 2009.

    For the Nuclear Regulatory Commission.
Elmo E. Collins,
Regional Administrator.
 [FR Doc. E9-4761 Filed 3-5-09; 8:45 am]
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