[Federal Register Volume 79, Number 217 (Monday, November 10, 2014)]
[Notices]
[Pages 66750-66753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26548]


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NUCLEAR REGULATORY COMMISSION

[EA-14-113; NRC-2014-0242]


In the Matter of Kruger Technologies, Inc.

AGENCY: Nuclear Regulatory Commission.

ACTION: Confirmatory order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a 
confirmatory order to Kruger Technologies, Inc., (KTI) confirming 
agreements reached in an Alternative Dispute Resolution Session held on 
September 3, 2014. As part of the agreement, KTI will take a number of 
actions, including: Revising the company-wide policy to describe 
implementation of NRC safety and security requirements for portable 
gauges; ensuring all authorized gauge users are trained initially and 
annually on the revised company-wide policy; increasing management 
oversight by establishing a process to periodically conduct field 
inspections; and providing Radiation Safety Officer training for an 
additional authorized gauge user. KTI is also required to notify the 
NRC periodically of the status of its efforts.

DATES: Effective Date: November 28, 2014.

ADDRESSES: Please refer to Docket ID NRC-2014-0242 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this action by the 
following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2014-0242. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: [email protected]. For questions about this Order, 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section of this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly available documents online in the NRC 
Library at http://www.nrc.gov/reading-rm/adams.html. To begin the 
search, select ``ADAMS Public Documents'' and then select ``Begin Web-
based ADAMS Search.'' For problems with ADAMS, please contact the NRC's 
Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-
4737, or by email to [email protected]. The ADAMS accession number 
for each document referenced in this document (if that document is 
available in ADAMS) is provided the first time that a document is 
referenced.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Patricia Lougheed, Region III, U.S. 
Nuclear Regulatory Commission, Lisle, Illinois 60532; telephone: 630 
810-4376, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Lisle, Illinois this 28th day of October, 2014.

    For the Nuclear Regulatory Commission.
Darrell J. Roberts,
Deputy Regional Administrator.

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

In the Matter of
Kruger Technologies, Inc.
Lenexa, Kansas
Docket No. 030-38660
License No. 15-35082-01
EA-14-113

Confirmatory Order Modifying License

I

    Kruger Technologies, Inc., (KTI or Licensee) is the holder of 
Materials License No. 15-35082-01 issued by the U.S. Nuclear Regulatory 
Commission

[[Page 66751]]

(NRC) pursuant to part 30 of Title 10 of the Code of Federal 
Regulations (10 CFR), on August 1, 2013. This license superseded 
Materials License No. 24-25827-01, originally issued on October 5, 
1987, due to a change in licensee location. KTI operates a construction 
consulting and testing service with its headquarters in Lenexa, Kansas. 
The license authorizes KTI to use or store portable gauges at the 
licensee's facilities located at Knob Noster, Missouri, and McConnell 
Air Force Base in Wichita, Kansas. The license also authorizes the use 
of portable gauges at temporary job sites anywhere the NRC maintains 
jurisdiction.
    This Confirmatory Order is the result of an agreement reached 
during an alternative dispute resolution (ADR) mediation session 
conducted on September 3, 2014.

II

    On May 21, 2014, during a routine inspection of licensed activities 
involving the use of byproduct material (cesium-137 and americium-241) 
for measuring physical properties of materials with portable nuclear 
gauging devices, the NRC identified an apparent violation of NRC 
requirements for securing portable gauges when not in use or under the 
control and constant surveillance of the licensee. Specifically, upon 
arriving at the licensee's Knob Noster, Missouri, facility, the 
inspector observed an unsecured portable gauge in the bed of a KTI 
pickup truck parked in front of the building. There were no licensee 
personnel in the immediate vicinity to provide control or constant 
surveillance of the gauge. The gauge transportation case was chained to 
the bed of the truck with a single chain; however, the lid of the 
transportation case was not locked and would not have prevented 
unauthorized removal of the gauge. A padlock was looped through one of 
the hasps to the lid of the case, but the lock was not engaged. The 
second hasp on the lid of the case was not secured, and no other 
physical control secured the lid. This was contrary to the requirements 
in 10 CFR 30.34(i), which require portable gauge licensees to use a 
minimum of two independent physical controls that form tangible 
barriers to secure a portable gauge from unauthorized removal when the 
portable gauge was not under the control or constant surveillance by 
the licensee.
    On July 24, 2014, the NRC provided KTI with an inspection report 
detailing the results of the inspection. In the letter transmitting the 
inspection report, the NRC offered KTI the choice to: (1) Respond in 
writing to the apparent violation addressed in this inspection report 
within 30 days of the date of the letter; (2) request a Predecisional 
Enforcement Conference (PEC); or (3) request ADR.
    On September 3, 2014, KTI and the NRC met in an ADR session 
mediated by a professional mediator, arranged through Cornell 
University's Institute on Conflict Resolution. The ADR process is one 
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, KTI requested use of the ADR 
process to resolve differences it had with the NRC. During the ADR 
session, KTI described corrective actions it had taken prior to the ADR 
session. These included a training session for all KTI employees on the 
requirements of 10 CFR 30.34(i) and the provision of additional locks 
and chains to the Knob Noster facility as well as to all users, such 
that each user had an additional set. At the end of the ADR session, a 
preliminary settlement agreement was reached. The elements of the 
agreement, as signed by both parties, consisted of the following:
    A. Policy and Training on Controlling of Nuclear Gauges:
    1. By November 1, 2014, Kruger Technologies, Inc., (KTI) will 
review and revise the company-wide policy to describe implementation of 
NRC safety and security requirements for portable gauges. The policy 
will address subjects such as: (1) Gauge safety and security at 
permanent storage locations, temporary job sites (short and long term), 
and during transportation, (2) actions to be taken by KTI staff if 
equipment becomes damaged, malfunctioning, or missing, including 
expectations for notification, provision for extra equipment, and 
promptness of repair and replacement; and (3) initial and annual 
refresher training of KTI staff on gauge safety and security.
    2. By January 1, 2015, KTI will conduct training for all authorized 
users on the company-wide policy described in item A.1. KTI will 
maintain documentation discussed and the individuals in attendance 
until January 1, 2022.
    3. By January 1, 2015, KTI will revise the company-wide training 
program to require training on the company-wide policy described in 
item A.1 to new gauge users prior to certification as an authorized 
gauge user.
    B. Management Oversight of the Nuclear Gauge Security Program:
    1. By November 1, 2014, KTI will establish a process to 
periodically conduct field inspections of portable gauges in use to 
ensure compliance with the company safety and security policy.
    a. By November 1, 2014, KTI will develop an inspection form, which 
will include the date of the inspection, the location, the technicians 
observed, the activities observed, and performance observations.
    b. The KTI inspection process will include observations at each 
permanent storage facility and long-term temporary job-site at least 
once each calendar quarter on a random, unannounced basis and will 
include short-term job sites.
    c. The KTI inspection process shall ensure that each gauge 
technician is observed at least annually.
    d. The KTI inspections shall be conducted by persons who are 
trained as a Radiation Safety Officer.
    e. The KTI corporate Radiation Safety Officer will inspect each 
facility at least annually.
    2. By January 1, 2015, KTI management will conduct the first 
quarterly inspection described in item B.1 and will continue those 
inspections through December 31, 2016.
    3. KTI will retain inspection forms for NRC inspection until 
January 1, 2022.
    4. KTI will discuss issues discovered during the inspections during 
the routinely scheduled annual safety meetings.
    5. By December 1, 2015, KTI will provide Radiation Safety Officer 
training for an additional gauge user at the Knob Noster, facility. 
Radiation Safety Officer training will include commercially-provided 
instructor-led training that includes an examination.
    C. Reports of Activities:
    By January 31, 2016, and January 31, 2017, KTI will provide a 
written letter to the Director, Division of Nuclear Materials Safety, 
Region III. The KTI written report will describe the results of the 
activities in Items A and B, results of the field inspections, and any 
enhancements to the KTI gauge program.
    D. Administrative Items:
    1. The NRC and KTI agree that the issue described above (in Section 
II) resulted in a violation of NRC requirements contained in 10 CFR 
30.34(i).
    2. The NRC considers the corrective actions discussed above to be 
appropriately prompt and comprehensive.
    3. In consideration of the commitments delineated above, the

[[Page 66752]]

NRC agrees to refrain from issuing a Notice of Violation or proposing a 
civil penalty for the apparent violation of 10 CFR 30.34(i) discussed 
in the NRC's Inspection Report No. 03038660/2014001(DNMS) dated July 
24, 2014. However, the NRC will consider the Confirmatory Order as an 
escalated enforcement action.
    4. This agreement is binding upon successors and assigns of KTI.
    On October 20, 2014, KTI consented to issuing this Confirmatory 
Order with the commitments, as described in Section V below. KTI 
further agreed that this Confirmatory Order is to be effective 30 days 
after issuance of the Confirmatory Order 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 Section III above, the NRC has concluded 
that its concerns can be resolved through issuance of this Confirmatory 
Order.
    I find that KTI'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 
KTI's commitments be confirmed by this Confirmatory Order. Based on the 
above and KTI's consent, this Confirmatory Order is effective 30 days 
after issuance of the Confirmatory Order.

V

    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 Part 30, IT IS HEREBY ORDERED 
THAT LICENSE NO. 15-35082-01 IS MODIFIED AS FOLLOWS:
    A. Policy and Training on Controlling of Nuclear Gauges:
    1. By December 1, 2014, Kruger Technologies, Inc. (KTI) will review 
and revise the company-wide policy to describe implementation of NRC 
safety and security requirements for portable gauges. The policy will: 
(1) Address gauge safety and security at permanent storage locations, 
temporary job sites (short and long term), and during transportation; 
(2) describe actions to be taken by KTI authorized gauge users if 
equipment used to provide physical controls for portable gauges becomes 
damaged, malfunctioning, or missing, including expectations for 
notification, provision for extra equipment, and promptness of repair 
and replacement; and (3) provide for initial and annual refresher 
training of KTI authorized gauge users on gauge safety and security.
    2. By January 1, 2015, KTI will conduct training for all authorized 
users on the company-wide policy described in item A.1. KTI will 
maintain documentation of the topics discussed and the individuals in 
attendance until January 1, 2022.
    3. By January 1, 2015, KTI will revise the company-wide training 
program to require training on the company-wide policy described in 
item A.1 for new gauge users prior to certification as an authorized 
gauge user and for all authorized gauge users on an annual basis.
    B. Management Oversight of the Nuclear Gauge Security Program:
    1. By December 1, 2014, KTI will establish a process to 
periodically conduct field inspections of portable gauges in use to 
ensure compliance with the company-wide policy for safety and security 
requirements for portable gauges described in Item A.1.
    a. By December 1, 2014, KTI will develop an inspection form, which 
will include the date of the inspection, the location, the technicians 
observed, the activities observed and performance observations.
    b. The KTI inspection process will include observations at each 
permanent storage facility and long-term temporary job-site at least 
once each calendar quarter on a random, unannounced basis and will 
include short-term job sites.
    c. The KTI inspection process shall ensure that each authorized 
gauge user is observed at least annually.
    d. The KTI inspections shall be conducted by persons who are 
trained as a Radiation Safety Officer.
    e. The KTI corporate Radiation Safety Officer will inspect each 
facility at least annually.
    2. By January 1, 2015, KTI management will conduct the first 
quarterly inspection described in item B.1 and will continue those 
inspections through December 31, 2016.
    3. KTI will retain inspection forms for NRC inspection until 
January 1, 2022.
    4. KTI will discuss issues discovered during the inspections during 
the routinely scheduled annual refresher training in 2015 and 2016.
    5. By December 1, 2015, KTI will provide Radiation Safety Officer 
training for an additional authorized gauge user at the Knob Noster, 
facility. Radiation Safety Officer training will include commercially-
provided instructor-led training that includes an examination.
    C. Reports of Activities:
    By January 31, 2016, and January 31, 2017, KTI will provide a 
written letter to the Director, Division of Nuclear Materials Safety, 
Region III, 2443 Warrenville Road, Lisle, IL 60532. The KTI written 
report will describe the results of the activities in Items A and B, 
results of the field inspections, and any enhancements to the KTI gauge 
program.
    D. Administrative Items:
    This agreement is binding upon successors and assigns of KTI.
    The Regional Administrator, Region III, 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 KTI, may request a hearing within 30 days of the issuance date of 
this Confirmatory Order. 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, and include a 
statement of good cause for the extension.
    All documents filed in NRC adjudicatory proceedings, including a 
request for 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 the NRC's E-Filing rule (72 FR 49139; 
August 28, 2007, as amended by 77 FR 46562; August 3, 2012), codified 
in pertinent part at 10 CFR Part 2, Subpart C. 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 (1) request 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

[[Page 66753]]

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 ID certificate). 
Based upon 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 NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/getting-started.html. System requirements for accessing the 
E-Submittal server are detailed in 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 (EIE) 
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 
hearing or petition for leave to intervene through the EIE. Submissions 
should be in Portable Document Format (PDF) in accordance with 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 (ET) 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 documents 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/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 NRC's adjudicatory E-
Filing system may seek assistance by contacting the NRC Meta System 
Help Desk through 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 8:00 a.m. and 8:00 p.m., 
ET, Monday through Friday, excluding government holidays.
    Participants who believe that they have a good cause for not 
submitting documents electronically must, in accordance with 10 CFR 
2.302(g), file an exemption request with their initial paper filing 
showing good cause as to why they cannot file electronically and 
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. A presiding officer, having 
granted an exemption request from using E-Filing, may require a 
participant or party to use 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, participants are requested not to include 
copyrighted materials in their submission, except for limited excerpts 
that serve the purpose of the adjudicatory filings and would constitute 
a Fair Use application.
    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 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 a separate Order designating the 
time and place of any hearings, as appropriate. 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 effective and final 30 days after 
issuance of the Confirmatory 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.

    Dated at Lisle, Illinois, this 28th day of October, 2014.

    For the Nuclear Regulatory Commission.

Darrell J. Roberts,

Deputy Regional Administrator.

[FR Doc. 2014-26548 Filed 11-7-14; 8:45 am]
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