[Federal Register Volume 77, Number 103 (Tuesday, May 29, 2012)]
[Notices]
[Pages 31651-31655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12989]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[NRC-2012-0118; Docket No.: 030-37780/030-37868; License No.: 42-29303-
01; EA-10-102]
Texas Gamma Ray, LLC, Pasadena, TX; Confirmatory Order (Effective
Immediately)
I
Texas Gamma Ray, LLC (TGR or Licensee), is the former holder of
License No. 42-29303-01 issued by the Nuclear Regulatory Commission
(NRC or Commission) pursuant to Title 10 of the Code of Federal
Regulations (10 CFR) part 34, on January 6, 2009. The license
authorized industrial radiographic operations in accordance with
conditions specified therein. On July 25, 2011, TGR terminated its NRC
materials license. Texas Gamma Ray, LLC, holds an Agreement State
license authorized by the state of Texas. Therefore, pursuant to 10 CFR
150.20(a)(1), TGR is granted a general license by the NRC to conduct
the same activities authorized by its Texas license in areas where the
NRC maintains regulatory jurisdiction for the use of radioactive
material. Prior to obtaining its NRC materials license, TGR performed
licensed activities in offshore Federal waters under its general NRC
license at various times during calendar years 2007 and 2008.
This Confirmatory Order (Order) is the result of an agreement
reached during an alternative dispute resolution (ADR) mediation
session conducted on April 23, 2012, in Arlington, Texas.
II
From June 4, 2009, through November 30, 2010, the NRC conducted a
safety and security inspection of the use of byproduct material for
industrial radiographic operations conducted under TGR's former NRC
license. On July 20, 2009, the NRC's Office of Investigations (OI),
Region IV, began an investigation (Case No. 04-2009-066) to determine
if TGR willfully failed to provide complete and accurate information to
the NRC by: (1) Not disclosing the locations of radioactive materials
stored in excess of 180 days at temporary job site, and (2) not
disclosing accurate information on the location of where radiography
work was dispatched to the field. Also, the investigation was initiated
to determine if TGR failed to comply with NRC security requirements, in
violation of its license requirements. OI concluded the investigation
on May 20, 2010. The NRC did not substantiate that willfulness was
associated with the apparent violations.
By letter dated December 22, 2010 (ML103560822), the NRC
transmitted the results of the inspection and investigation in NRC
Inspection Report 030-37780/2009-001 and Investigation Report 4-2009-
066 (ML103560822) to TGR. Enclosure 2 of the letter was not made
publicly available because it contained Security-Related Information.
Based on the results of the NRC inspection and the evidence developed
during the investigation, three apparent violations of NRC requirements
were identified. The apparent violations involved the storage of
licensed material at a location in Rock Springs, Wyoming, that was not
authorized on the license and failures to comply with NRC security
requirements that are described in the Appendix to this Order
(Appendix). The Appendix includes Security-Related Information;
therefore, it is not publicly available.
On March 2, 2011, the NRC and TGR met in a predecisional
enforcement conference (PEC) in Arlington, Texas. During the PEC, TGR
provided supplemental information regarding two of the apparent
violations. Because of the NRC's concern that willfulness may be
associated with these two apparent violations, OI initiated a second
investigation (Case No. 4-2011-034) on March 31, 2011. During the
second investigation, concluded on November 18, 2011, OI did not
identify additional apparent violations. However, based on the
information developed during this second investigation, the NRC
determined that a TGR radiographer deliberately failed to implement NRC
security requirements and deliberately stored radioactive materials at
a location not authorized by the license.
By letter dated February 23, 2012, the NRC informed TGR that the
NRC was considering escalated enforcement action for the apparent
violations. The NRC offered TGR the opportunity to respond in writing,
request a PEC, or request alternative dispute resolution (ADR) with the
NRC in an attempt to resolve issues associated with this matter. In
response, on March 5, 2012, TGR requested ADR to resolve this matter
with the NRC.
On April 23, 2012, the NRC and TGR representatives met in an ADR
session with a professional mediator, arranged through the Cornell
University 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
In response to the NRC's offer, Texas Gamma Ray, LLC (TGR),
requested use of the NRC ADR process to resolve differences it had with
the NRC. During that ADR session, a preliminary settlement agreement
was reached. The elements of that preliminary agreement are described
below, except for those portions of the agreement that include
Security-Related Information and, therefore, are not publicly
available. The security-related elements of the agreement, as well as
those portions of this Order that address those security-related
elements, are described in the Appendix to this Order. The following
description of the preliminary ADR agreement, and the required actions
described in Section V of this Order
[[Page 31652]]
include references to the Appendix to allow for public release of this
Order.
The NRC recognizes the corrective actions, associated with the
apparent violations that TGR has already implemented, which include:
Retrieving the licensed material from Wyoming and
transferring it to a site in Texas authorized for storage by the State
of Texas.
Revising internal procedures to require:
A security-related provision that is described in the
Appendix to this Order;
A security-related provision that is described in the
Appendix to this Order; and
The radiation safety officer's (RSO) written approval
prior to storing licensed material at temporary job sites and other
sites not listed on a specific materials license.
Requiring the RSO's approval for storing licensed material
and documenting it on a ``Storage Approval Form,'' which includes:
A security-related item that is described in the Appendix
to this Order;
A security-related item that is described in the Appendix
to this Order;
A security-related item that is described in the Appendix
to this Order;
Verification that the vault is suitable for storage of
licensed material;
Letter from property owner;
Approval of facility for storage by a regulatory agency;
Verification that a calculation of public dose has been
performed; and
The RSO's signature.
Training all radiographers on the new procedures.
Texas Gamma Ray, LLC, has also agreed to take the following
corrective actions to address the apparent violations:
A. Texas Gamma Ray, LLC, will establish, implement, and maintain a
comprehensive training program for employees conducting licensed
activities (radiographic operations or radiography). The goal of this
program is to conduct licensed operations safely and deter future
willful violations by ensuring that its employees understand the
importance that the NRC places on violations associated with deliberate
misconduct as well as violations caused by careless disregard. The
training program will consist of training for all current and newly
hired employees performing licensed activities and will provide for
annual refresher training. Texas Gamma Ray, LLC, will complete the
following activities in support of the training program:
1. Training Requirements for Current Employees.
Within 90 days of the date of the Confirmatory Order, TGR
will conduct a safety stand-down (short-term training) to discuss the
importance of safely conducting licensed activities, including the
concept of a healthy safety culture, willfulness, security of licensed
material, and ethics.
Within 60 days of the date of the Confirmatory Order, TGR
will contract with an external contractor to provide comprehensive
training to all of its current employees who are engaged in licensed
activities (up to and including the company president) on what is meant
by willfulness (careless disregard and deliberate misconduct), the
potential enforcement sanctions that the NRC may take against employees
who engage in deliberate misconduct, and the NRC's policy statement on
safety culture.
Texas Gamma Ray, LLC, will submit for NRC review and
approval, the resume of the contractor recommended to perform the
training, at least 15 days prior to the time that TGR intends to
execute a contract with the external training contractor.
At least 15 days prior to the start of the training, but
no later than 30 days after executing the contract with the external
training contractor, TGR will submit for NRC review and approval an
outline of the topics to be covered during this training session and a
copy of a typical examination and the correct answers. The topics in
section A.2 of this order will be included in this training.
Texas Gamma Ray, LLC, must complete the comprehensive
training of TGR management within 150 days of the NRC's approval of the
outline of course topics.
Texas Gamma Ray, LLC, must complete the comprehensive
training of employees within 360 days of the NRC's approval of the
outline of course topics.
Texas Gamma Ray, LLC, will assess the effectiveness of the
comprehensive training through written testing. Any employee not
passing the test will receive remedial training and will be re-tested.
Within 30 days of the completion of the comprehensive
training, TGR will provide to the NRC: (1) A letter stating that the
training as specified above has been completed and (2) the results of
the employee testing process.
2. Training Program Requirements. Training for the current
employees, new employees and annual refresher training will include the
following elements:
A discussion of the NRC's policy statement on safety
culture (76 FR 34773) and TGR management's support of the policy. As
part of this training, employees must be provided a copy of NUREG/BR-
0500, ``Safety Culture Policy Statement.'' TGR will provide a letter
from the company president to each employee regarding company
expectations concerning 10 CFR 30.9 and 10 CFR 30.10, and safety and
security issues; or issue a company policy statement on these topics;
A security-related topic that is described in the
Appendix;
A security-related topic that is described in the
Appendix;
A security-related topic that is described in the
Appendix;
A discussion on the importance of understanding and
following TGR's internal procedures and regulatory requirements
applicable to radiographic operations;
A discussion on when to suspend work activities and verify
whether specific circumstances allow for implementing corrective
actions and resuming work activities or stopping work activities in
order to protect the health and safety of workers and members of the
public;
A discussion of the elements of willfulness discussed in
Chapter 6 of the NRC Enforcement Manual, and examples of enforcement
actions that the NRC has taken against individuals. These actions are
publicly available on the NRC's Web site;
The requirements contained in 10 CFR 30.9, Completeness
and Accuracy of Information; 10 CFR 30.10, Deliberate Misconduct; and
10 CFR 30.7, Employee Protection; and
A discussion of past radiography events that have resulted
in overexposures to individuals, including the health effects of such
overexposures.
3. Recordkeeping Requirements. Texas Gamma Ray, LLC, will maintain
training records, including attendees and test results for 5 years. The
records will be made available to the NRC, if requested.
B. Within 120 days of the date of the Confirmatory Order, TGR will
develop and submit for NRC review and approval the following
procedures:
1. A procedure that provides details on how TGR management and the
corporate radiation safety officer (RSO) will provide oversight of
assistant and site RSOs.
2. A procedure for conducting field audits of security-related
requirements at TGR field offices and as being implemented by
radiography crews.
The audits must be unannounced to the field offices and
radiography crews.
The audits must include a review to establish that
radioactive sources and devices are properly stored and secured at
authorized locations and at temporary job sites.
[[Page 31653]]
A security-related provision that is described in the
Appendix to this Order.
The procedure must contain the elements reviewed during
the audit.
Records of audits and audit findings shall be maintained
for 5 years and made available to the NRC, if requested. Audit records
will contain the following information:
Date of audit;
Names of people who conducted the audit;
Names of people contacted by the auditor;
Audit findings and corrective actions; and
Follow-up, if any.
C. Texas Gamma Ray, LLC, shall pay a civil penalty in the amount of
$7,000. This civil penalty shall be made in equal quarterly payments of
$1,750 each. The first payment shall be made within 30 days of the date
of the Confirmatory Order. The remaining three payments shall be made
in equal payments each quarter, thereafter.
On May 14, 2012, TGR consented to issuing this Order with the
commitments, as described in Section V below. TGR further agreed that
this Order is to be effective upon issuance and that it has waived its
right to a hearing.
IV
Since Texas Gamma Ray, LLC (TGR), 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 Confirmatory Order.
I find that TGR'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 TGR's consent, this Confirmatory Order is immediately
effective upon issuance.
V
Accordingly, pursuant to Sections 81, 161b, 161i, 161o, 182, and
186 of the Atomic Energy Act of 1954, as amended (the Act), and the
Commission's regulations in 10 CFR 2.202 and 10 CFR parts 20, 30, 34,
and 150 it is hereby ordered, effective immediately, that:
A. Texas Gamma Ray, LLC, will establish, implement, and maintain a
comprehensive training program for employees conducting licensed
activities (radiographic operations or radiography). The goal of this
program is to conduct licensed operations safely and deter future
willful violations by ensuring that its employees understand the
importance that the NRC places on violations associated with deliberate
misconduct as well as violations caused by careless disregard. The
training program will consist of training for all current and newly
hired employees performing licensed activities and will provide for
annual refresher training. Texas Gamma Ray, LLC, will complete the
following activities in support of the training program:
1. Training Requirements for Current Employees:
a. Within 90 days of the date of the Confirmatory Order, TGR will
conduct a safety stand-down (short-term training) to discuss the
importance of safely conducting licensed activities including the
concept of a healthy safety culture, willfulness, security of licensed
material, and ethics.
b. Within 60 days of the date of the Confirmatory Order, TGR will
contract with an external contractor to provide comprehensive training
to all of its current employees who are engaged in licensed activities
(up to and including the company president) on what is meant by
willfulness (careless disregard and deliberate misconduct), the
potential enforcement sanctions that the NRC may take against employees
who engage in deliberate misconduct, and the NRC's policy statement on
safety culture.
c. Texas Gamma Ray, LLC, will submit for NRC review and approval,
the resume of the contractor recommended to perform the training, at
least 15 days prior to the time that TGR intends to execute a contract
with the external training contractor.
d. At least 15 days prior to the start of the training, but no
later than 30 days after executing the contract with the external
training contractor, TGR will submit for NRC review and approval an
outline of the topics to be covered during this training session and a
copy of a typical examination and the correct answers. The topics in
section A.2 of this order will be included in this training.
e. Texas Gamma Ray, LLC, must complete the comprehensive training
of TGR management within 150 days of the NRC's approval of the outline
of course topics.
f. Texas Gamma Ray, LLC, must complete the comprehensive training
of employees within 360 days of the NRC's approval of the outline of
course topics.
g. Texas Gamma Ray, LLC, will assess the effectiveness of the
training through written testing. Any employee not passing the test
will receive remedial training and will be re-tested.
h. Within 30 days of the completion of the comprehensive training,
TGR will provide to the NRC: (1) a letter stating that the training as
specified above has been completed and (2) the results of the employee
testing process.
2. Training Program Requirements. Training for current employees,
new employees and annual refresher training will include the following
elements:
a. A discussion of the NRC's policy statement on safety culture (79
FR 34773) and TGR management's support of the policy. As part of this
training, employees must be provided a copy of NUREG/BR-0500, ``Safety
Culture Policy Statement.'' Texas Gamma Ray, LLC, will provide a letter
from the company president to each employee regarding company
expectations concerning 10 CFR 30.9 and 10 CFR 30.10, and safety and
security issues; or issue a company policy statement on these topics;
b. A security-related topic that is described in the Appendix;
c. A security-related topic that is described in the Appendix;
d. A security-related topic that is described in the Appendix;
e. A discussion on the importance of understanding and following
TGR's internal procedures and regulatory requirements applicable to
radiographic operations;
f. A discussion on when to suspend work activities and verify
whether specific circumstances allow for implementing corrective
actions and resuming work activities or stopping work activities in
order to protect the health and safety of workers and members of the
public;
g. A discussion of the elements of willfulness discussed in Chapter
6 of the NRC Enforcement Manual, and examples of enforcement actions
that the NRC has taken against individuals. These actions are publicly
available on the NRC's Web site;
h. The requirements contained in 10 CFR 30.9, Completeness and
Accuracy of Information; 10 CFR 30.10, Deliberate Misconduct; and 10
CFR 30.7, Employee Protection; and
i. A discussion of past radiography events that have resulted in
overexposures to individuals, including the health effects of such
overexposures.
3. Recordkeeping Requirements. Texas Gamma Ray, LLC, will maintain
training records, including attendees and test results for 5 years. The
records will be made available to the NRC, if requested.
B. Within 120 days of the date of the Confirmatory Order, TGR will
develop and submit for NRC review and approval the following
procedures:
[[Page 31654]]
1. A procedure that provides details on how TGR management and the
corporate radiation safety officer (RSO) will provide oversight of
assistant and site RSOs.
2. A procedure for conducting field audits of security-related
requirements at TGR field offices and as being implemented by
radiography crews.
a. The audits must be unannounced to the field offices and
radiography crews.
b. The audits must include a review to establish that radioactive
sources and devices are properly stored and secured at authorized
locations and at temporary job sites.
c. A security-related provision that is described in the Appendix
to this Order.
d. The procedure must contain the elements reviewed during the
audit.
e. Records of audits and audit findings shall be maintained for 5
years and made available to the NRC, if requested. Audit records will
contain the following information:
Date of audit;
Name of person(s) who conducted the audit;
Names of persons contacted by the auditor(s);
Audit findings and corrective actions; and
Follow-up, if any.
C. Texas Gamma Ray, LLC, shall pay a civil penalty in the amount of
$7,000. This civil penalty shall be made in equal quarterly payments of
$1,750 each. The first payment shall be made within 30 days of the date
of the Confirmatory Order. The remaining three payments shall be made
in equal payments each quarter, thereafter.
The Director, Office of Enforcement, may, in writing, relax or
rescind any of the above conditions upon demonstration by TGR of good
cause.
VI
Any person adversely affected by this Confirmatory Order, other
than TGR, may request a hearing within 20 days of its publication in
the Federal Register. 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.
All documents filed in the NRC adjudicatory proceedings, including
a request for a hearing, a petition for leave to intervene, any motion
or other document filed in the proceeding prior to the submission of a
request for hearing or petition to intervene, and documents filed by
interested governmental entities participating under 10 CFR 2.315(c),
must be filed in accordance with NRC E-Filing rule (72 FR 49139, August
28, 2007). The E-Filing process requires participants to submit and
serve all adjudicatory documents over the Internet, or in some cases to
mail copies on electronic storage media. Participants may not submit
paper copies of their filings unless they seek an exemption in
accordance with the procedures described below.
To comply with the procedural requirements of E-Filing, at least 10
days prior to the filing deadline, the participant should contact the
Office of the Secretary by email at [email protected], or by
telephone at 301-415-1677, to request (1) a digital identification (ID)
certificate, which allows the participant (or its counsel or
representative) to digitally sign documents and access the E-Submittal
server for any proceeding in which it is participating; and (2) advise
the Secretary that the participant will be submitting a request or
petition for hearing (even in instances in which the participant, or
its counsel or representative, already holds an NRC-issued digital
certificate). Based on this information, the Secretary will establish
an electronic docket for the hearing in this proceeding if the
Secretary has not already established an electronic docket.
Information about applying for a digital ID certificate is
available on the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/apply-certificates.html. System requirements for accessing
the E-Submittal server are detailed in the NRC's ``Guidance for
Electronic Submission,'' which is available on the agency's public Web
site at http://www.nrc.gov/site-help/e-submittals.html. Participants
may attempt to use other software not listed on the Web site, but
should note that the NRC's E-Filing system does not support unlisted
software, and the NRC Meta System Help Desk will not be able to offer
assistance in using unlisted software.
If a participant is electronically submitting a document to the NRC
in accordance with the E-Filing rule, the participant must file the
document using the NRC's online, web-based submission form. In order to
serve documents through the Electronic Information Exchange System,
users will be required to install a web browser plug-in from the NRC's
Web site. Further information on the web-based submission form,
including the installation of the web browser plug-in, is available on
the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html.
Once a participant has obtained a digital ID certificate and a
docket has been created, the participant can then submit a request for
a hearing or petition for leave to intervene. Submissions should be in
portable document format (PDF) in accordance with the NRC guidance
available on the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html. A filing is considered complete at the time the
documents are submitted through the NRC's E-Filing system. To be
timely, an electronic filing must be submitted to the E-Filing 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 email notice confirming receipt of the document. The
E-Filing system also distributes an email notice that provides access
to the document to the NRC's 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, applicants and
other participants (or their counsel or representative) must apply for
and receive a digital ID certificate before a hearing request/petition
to intervene is filed so that they can obtain access to the document
via the E-Filing system.
A person filing electronically using the agency's adjudicatory E-
Filing system may seek assistance by contracting the NRC Meta System
Help Desk thorough the ``Contact Us'' link located on the NRC's Web
site at http://www.nrc/gov/site-help/e-submittals.html, by email at
[email protected], or by a toll free call at 1-866-672-7640. The
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m.,
Eastern Time, Monday through Friday, excluding government holidays.
Participants who believe that they have a good cause for not
submitting documents electronically must file an extension request, 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,
[[Page 31655]]
Sixteenth Floor, One White Flint North, 11555 Rockville Pike,
Rockville, MD 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. A presiding officer,
having granted an exemption request from using E-Filing, may require a
participant or party using E-Filing if the presiding officer
subsequently determines that the reason for granting the exemption from
use of E-Filing no longer exists.
Documents submitted in adjudicatory proceedings will appear in the
NRC's electronic hearing docket, which is available to the public at
http://ehd1.nrc.gov/ehd, unless excluded pursuant to an order of the
Commission, or the 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, unless an NRC
regulation or other law requires submission of such information. 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 submissions.
If a person (other than TGR) requests a hearing, that person shall
set forth with particularity the manner in which his interest is
adversely affected by this Confirmatory Order and shall address the
criteria set forth in 10 CFR 2.309(d) and (f).
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 V above shall be final 30 days from the date this
Confirmatory Order is published in the Federal Register 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 15th day of May 2012.
For the Nuclear Regulatory Commission.
Elmo E. Collins,
Regional Administrator.
[FR Doc. 2012-12989 Filed 5-25-12; 8:45 am]
BILLING CODE 7590-01-P