[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54129-54131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19359]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 030-38874 and 030-38780; EA-13-190; NRC-2016-0170]


In the Matter of Plus, LLC

AGENCY: Nuclear Regulatory Commission.

ACTION: Imposition order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
Imposition Order to Plus, LLC, imposing a civil penalty of $21,000. On 
May 3, 2016, the NRC issued a Notice of Violation and Proposed 
Imposition of Civil Penalty--$42,000 to Plus, LLC, for failing to 
comply with regulatory requirements regarding the import, possession, 
and distribution of watches containing byproduct material (hydrogen-3).

DATES: The Imposition Order was issued on August 8, 2016

ADDRESSES: Please refer to Docket ID NRC-2016-0170 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this document 
using any of the following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0170. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For questions about this 
Imposition 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 
ADAMS Public Documents collection 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 (if it 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: Leelavathi Sreenivas, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001; telephone: 301-415-1285, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Imposition Order is 
attached.

    Dated at Rockville, Maryland, this 8th day of August, 2016.

    For the Nuclear Regulatory Commission.
Patricia K. Holahan,
Director, Office of Enforcement.

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

In the Matter of Plus, LLC; Stamford, Connecticut
Docket Nos. 030-38874 and 030-38780
License Nos. 06-35274-01E and 06-35183-01
EA-13-190

ORDER IMPOSING CIVIL MONETARY PENALTY

I

    Plus, LLC (Plus or the Licensee), is the holder of Materials 
License No.06-35183-01 issued by the U.S. Nuclear Regulatory 
Commission (NRC) on April 23, 2015, pursuant to Part 30 of Title 10 
of the Code of Federal Regulations (10 CFR). The license authorizes 
the licensee to possess material at its facility located in 
Stamford, Connecticut, in accordance with the conditions specified 
therein. Under 10 CFR 110.27, the Licensee is granted a general 
license to import in accordance with the conditions specified in the 
regulations. The Licensee is also the holder of Materials License 
No. 06-35274-01E issued by the NRC on December 2, 2015. The license 
authorizes the Licensee to distribute material in accordance with 
the conditions specified therein. At the time of the initiation of 
the violations, Plus, LLC, did not have any specific licenses issued 
by the NRC or an Agreement State for activities involving the 
import, possession, or distribution of byproduct material.

II

    Two investigations were initiated by the NRC Office of 
Investigations (OI), on October 18, 2013, and April 8, 2015. The 
results of these investigations indicated that Plus was conducting 
activities that were not in compliance with the NRC's requirements, 
specifically, without the required licensing for such activities. A 
written Notice of Violation and Proposed Imposition of Civil Penalty 
(Notice) was served upon Plus by letter dated May 3, 2016 (ADAMS 
Accession No. ML16071A111). The Notice states the nature of the 
violations, the provisions of the NRC's requirements that Plus 
violated, and the amount of the civil penalty proposed for the 
violations.
    Plus responded to the Notice in a letter dated May 10, 2016 
(ADAMS Accession No. ML16215A481). In its response, the Licensee did 
not deny the facts involving the violations, but did request 
mitigation of the severity level of the violations and the proposed 
civil penalty amount.

III

    After consideration of the Licensee's response and the 
statements of fact, explanation, and argument for mitigation 
contained therein, the NRC staff has determined, as set forth in the 
Appendix to this Order that these violations occurred, as stated, 
and that adequate basis does not exist for mitigation of the 
severity level. The NRC also determined that an adequate basis was 
provided by the Licensee for mitigation of the proposed civil 
penalty amount. Consequently, based on the small entity status of 
the Licensee, a reduced civil penalty in the amount of $21,000 
should be imposed.

IV

    In view of the foregoing and pursuant to Section 234 of the 
Atomic Energy Act of 1954, as amended (Act), 42 U.S.C. 2282, and 10 
CFR 2.205, IT IS HEREBY ORDERED THAT:
    The Licensee shall pay a civil penalty in the amount of $21,000 
within 30 days of the issuance date of this Order, in accordance 
with NUREG/BR-0254, ``Payment Methods'' (see http://www.nrc.gov/reading-rm/doc-collections/nuregs/brochures/br0254/). In addition, 
at the time payment is made, the Licensee 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 2.205(d), the Licensee and any other 
person adversely

[[Page 54130]]

affected by this Order may request a hearing on this Order within 30 
days of the issuance 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 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 at 77 FR 46562, August 3, 
2012). 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 
ten (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 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 to the NRC,'' which is available on the 
agency's public Web site at http://www.nrc.gov/site-help/electronic-sub-ref-mat.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 Electronic 
Filing 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.
    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. 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/electronic-sub-ref-mat.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 documents 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 contacting the NRC Electronic 
Filing 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 to 1-866-672-
7640. The NRC Electronic Filing Help Desk is available between 9 
a.m. and 7 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 exemption request, 
in accordance with 10 CFR 2.302(g), with their initial paper filing 
stating why there is good cause for not filing 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 
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 submission.
    If a person other than Plus, LLC, 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 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 Order should 
be sustained.
    In the absence of any request for a hearing or alternative 
dispute resolution (ADR), or written approval of an extension of 
time in which to request a hearing or ADR, the provisions specified 
in Section IV above shall be final 30 days from the issuance date of 
this Order without further order or proceedings. If an extension of 
time for requesting a hearing or ADR has been approved, the 
provisions specified in Section IV shall be final when the extension 
expires if a hearing or ADR request has not been received. If ADR is 
requested, the provisions specified in Section IV shall be final 
upon termination of an ADR process that did not result in issuance 
of an order.

    Dated at Rockville, Maryland, this 8th day of August, 2016.

    For the Nuclear Regulatory Commission.
Patricia K. Holahan,
Director, Office of Enforcement.

Appendix to Imposition Order

Evaluations and Conclusion of Licensee Request for Mitigation

    On May 3, 2016, the U.S. Nuclear Regulatory Commission (NRC) 
issued a Notice of Violation and Proposed Imposition of Civil 
Penalty (Notice) for violations identified during the NRC 
investigations and records review. Plus, LLC (Licensee), responded 
to the Notice on May 10, 2016.
    The Licensee did not deny the facts involving the violations, 
however, the Licensee did request mitigation of the severity level 
of the violations and the proposed civil penalty amount. The NRC's 
evaluation and conclusion regarding the Licensee's requests are as 
follows:
    1. Summary of Licensee's Request to Mitigate Severity Level:
    The Licensee stated that there was no actual ``moderate safety 
or security consequences'' because there was no contamination found 
at the Licensee facility in an inspection conducted by the NRC on 
February 10, 2016, and that the products were the same as those that 
the NRC

[[Page 54131]]

subsequently licensed for distribution by the Licensee.

NRC Evaluation of Licensee's Response to Violations

    The NRC considers these violations significant because the 
requirements in Sec.  30.3(a) of Title 10 of the Code of Federal 
Regulations (CFR) provide reasonable assurance that transfers and 
the products intended for use by unlicensed persons meet the 
applicable requirements. The failure to obtain appropriate license 
authorization to distribute these products is significant because it 
resulted in the NRC not being able to conduct its regulatory 
responsibilities to ensure that the products were safe for 
distribution to members of the general public. The fact that there 
was no actual contamination found, and that the NRC was subsequently 
able to approve the Licensee's application for possession and 
distribution licenses, is fortuitous, but does not decrease the 
importance of the regulatory requirement and NRC oversight. Also, 
the NRC considers the Licensee's actions regarding all three of the 
violations to be willful and because the NRC's regulatory programs 
rely upon the integrity of entities, applicants, and licensees to 
comply with NRC requirements, the willful violations are of 
significant concern to the NRC. Therefore, in accordance with the 
Enforcement Policy (ADAMS Accession No. ML16197A561), these 
violations are appropriately characterized as Severity Level III 
violations. Accordingly, the significance of these violations have 
been determined to remain valid as stated in the Notice.
    2. Summary of Licensee's Request for Mitigation of Civil Penalty 
Amount
    The Licensee stated that Plus, LLC, should be considered a small 
entity and that if considered a small entity then the amount of 
annual license fees that Plus, LLC, avoided over the duration of the 
violations is less than the $70,000 estimated by the NRC. The 
Licensee requested that the NRC reconsider the civil penalty amount 
proposed.

NRC Evaluation of Licensee's Request for Mitigation of Civil 
Penalty Amount

    The NRC confirmed that, on or about March 22, 2016, Plus, LLC, 
requested small entity classification by submitting an NRC Form 
526--Certification of Small Entity Status for the Purposes of Annual 
Fees Imposed under 10 CFR part 171, along with the Licensee's first 
annual fee invoice. The request was accepted by the NRC and 
therefore, Plus, LLC, is considered to be a small entity entitled to 
reduced fees under 10 CFR 171.16. Accordingly, the NRC recalculated 
the annual fees avoided assuming small entity status and determined 
that the amount of annual license fees that Plus, LLC, avoided was 
approximately $11,200. Therefore, the NRC has concluded that it will 
not escalate the base civil penalty, and will reduce the proposed 
civil penalty to $21,000 as determined by application of the NRC 
Enforcement policy.
    Conclusion:
    Based on its evaluation, the NRC has concluded that these 
violations occurred as stated, and that adequate basis does not 
exist for mitigation of the severity level of these violations. The 
NRC also concluded that the Licensee provided an adequate basis for 
mitigation of the proposed civil penalty amount. Consequently, a 
reduced civil penalty in the amount of $21,000 will be imposed.
[FR Doc. 2016-19359 Filed 8-12-16; 8:45 am]
 BILLING CODE 7590-01-P