[Federal Register Volume 84, Number 168 (Thursday, August 29, 2019)]
[Notices]
[Pages 45554-45557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18645]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 03039133; NRC-2019-0166]


Order Suspending License; APINDE Inc.

AGENCY: Nuclear Regulatory Commission.

ACTION: Order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
Order suspending the license of APINDE Inc. (APINDE) located in 
Huntington, West Virginia. The NRC has determined that this action is 
necessary based on an ongoing review of the circumstances through which 
APINDE obtained and subsequently used its NRC license for industrial 
radiography. Specifically, the NRC has determined that APINDE submitted 
inaccurate information in its initial license application pertaining to 
the qualifications for an individual proposed to be the Radiation 
Safety Officer (RSO). This resulted in the NRC issuing a license to the 
company that was, in part, based on the inaccurate information and in 
APINDE maintaining an industrial radiography license without a 
qualified RSO. Further, after the initial RSO resigned, and APINDE 
submitted an application to amend the license and name a new RSO, the 
company submitted inaccurate information pertaining to that individual. 
Moreover, the NRC has information indicating that APINDE used its NRC 
license to procure a sealed radiography source, and may have allowed 
unauthorized access to the source.
    As a result, the NRC has lost assurance that APINDE can conduct the 
activities authorized under its license in compliance with NRC 
regulations and will protect the health and safety of the public. In 
accordance with the Order, APINDE must immediately cease all 
radiographic operations and return any byproduct material possessed 
under the license to locked, safe storage. APINDE shall not receive any 
NRC-licensed material while the Order is in effect. APINDE must respond 
to the Order within 20 days and specifically admit or deny each 
allegation or charge.

DATES: This Order takes effect immediately.

ADDRESSES: Please refer to Docket ID NRC-2019-0166 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 website: Go to https://www.regulations.gov/ and search for Docket ID NRC-2019-0166. Address 
questions about NRC docket IDs in Regulations.gov to Jennifer Borges; 
telephone: 301-287-9127; email: [email protected]. For technical 
questions, 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 https://www.nrc.gov/reading-rm/adams.html. To begin the search, 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 Order is available in ADAMS under 
Accession No. ML19234A068.
     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: Anne DeFrancisco, Division of Nuclear 
Materials Safety, U.S. Nuclear Regulatory Commission, Region I, 2100 
Renaissance Blvd., Suite 100, King of Prussia, PA 19406; telephone: 
610-337-5078, email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Rockville, Maryland, this 26th day of August, 2019.

    For the Nuclear Regulatory Commission.
George A. Wilson,
Director, Office of Enforcement.

Attachment--Order Suspending License

United States of America Nuclear Regulatory Commission

In the Matter of

 Docket No. 03039133
APINDE Inc.
License No. 47-35507-01
Huntington, West Virginia
EA-19-090

Order Suspending License (Effective Immediately)

I

    APINDE Inc. (Licensee or APINDE) is the holder of Byproduct 
Material License No. 47-35507-01 issued on January 9, 2019, by the U.S. 
Nuclear Regulatory Commission (NRC or Commission) pursuant to Part 30 
of Title 10 of the Code of Federal Regulations (10 CFR). The license 
authorizes possession and use of iridium-192 in sealed sources for use 
in industrial radiography operations and depleted uranium for use as 
shielding. The Licensee is located in Huntington, West Virginia, but 
the license also authorizes the company to perform work at temporary 
jobsites in all areas within NRC jurisdiction. The license, originally 
issued on January 9, 2019, is due to expire on January 31, 2034.

II

    As a result of a current and ongoing review of APINDE's licensed 
activities, the NRC identified that information submitted by APINDE in 
the license application and in a subsequent license amendment request, 
was not complete and accurate in all material respects, which is an 
apparent violation of regulatory requirements. Specifically, in an 
initial license application dated October 10, 2018 (ML18297A261; 
nonpublic because it contains security-related information), \1\ and in 
a related correspondence dated November 26, 2018 (ML18347A473; 
nonpublic because it contains security-related information), APINDE 
submitted inaccurate information about the qualifications for an 
individual proposed to be named on the license as the radiation safety 
officer (RSO). This resulted in the NRC issuing a license to APINDE 
that was based on inaccurate

[[Page 45555]]

information and in APINDE maintaining an industrial radiography license 
without a qualified RSO. In a subsequent license amendment request 
dated June 12, 2019 (ML19178A216; nonpublic because it contains 
security-related information), APINDE requested to name a new RSO on 
the license, but again submitted inaccurate information. The NRC has 
also determined that APINDE used its NRC license to procure a sealed 
radiography source and may have allowed unauthorized access to the 
source in apparent violation of NRC regulations.
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    \1\ Designation in parentheses refers to an Agency-wide 
Documents Access and Management System (ADAMS) accession number. 
Unless otherwise noted, documents referenced in this letter are 
publicly-available using the accession number in ADAMS.
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    Regarding the inaccurate information, NRC regulations (10 CFR 
34.13(g)) require applicants for a specific license to use licensed 
material in industrial radiography to identify and list the 
qualifications of the individual(s) designated as the RSO. As set forth 
in 10 CFR 34.42, the minimum qualifications, training, and experience 
for the RSO for an industrial radiography license are (1) completion of 
the training and testing requirements of 10 CFR 34.43(a); (2) 2000 
hours of hands-on experience as a qualified radiographer in industrial 
radiographic operations; and (3) formal training in the establishment 
and maintenance of a radiation protection program. The NRC can consider 
alternatives when the RSO has appropriate training and/or experience in 
the field of ionizing radiation, and in addition, has adequate formal 
training with respect to the establishment and maintenance of a 
radiation safety protection program. Information provided to the 
Commission by licensees or applicants for a license must be complete 
and accurate in all material respects (10 CFR 30.9(a)).
    In its initial license application dated October 10, 2018, and in a 
subsequent response to an NRC reviewer's questions dated November 26, 
2018, APINDE management attested that the proposed RSO had completed 
all required training. However, the NRC determined that the individual 
did not complete the required training. On June 12, 2019, following the 
resignation of the RSO named on APINDE's license, the Licensee 
submitted a license amendment application to the NRC to name a new RSO 
on the license. In the license amendment application, APINDE submitted 
inaccurate information pertaining to the new proposed RSO.
    Regarding the unauthorized possession of and access to a 
radiography source, NRC regulations (10 CFR 37.21) require that 
licensees shall subject any individual, whose assigned duties require 
unescorted access to such material, to an access authorization program 
to ensure that the individuals are trustworthy and reliable. The NRC 
identified that, in early February 2019, APINDE procured a sealed 
radiography source from QSA Global Inc. and that APINDE may have 
allowed unauthorized access to the source, in violation of 10 CFR 
37.21.

III

    Based on the above, the NRC has determined that the Licensee 
provided inaccurate information concerning the proposed RSO that 
resulted in the NRC issuing a license based, in part, on inaccurate 
information. Submission of incomplete and inaccurate information in an 
NRC license application that is material to the NRC's decision to grant 
a license is grounds for revocation, suspension, or modification of the 
license (10 CFR 30.61). Additionally, the NRC has information that the 
Licensee used its license to obtain a source containing a significant 
quantity of radioactive material and that the Licensee may have 
permitted unauthorized access to the source in violation of NRC 
regulations. The Commission must be able to rely on its licensees to 
provide complete and accurate information and to conduct licensed 
operations in a manner that protects public health, safety, and 
security.
    Consequently, I lack the requisite reasonable assurance that the 
Licensee's current operations can be conducted under License No. 47-
35507-01 in compliance with the Commission's requirements and that the 
health and safety of the public, including the Licensee's employees, 
will be protected. Therefore, the public health, safety, and interest 
require that License No. 47-35507-01 be suspended. Furthermore, 
pursuant to 10 CFR 2.202, I find that the significance of the 
violations and conduct described above is such that the public health, 
safety, and interest require that this Order be immediately effective, 
and remain in place until the NRC obtains sufficient information to 
restore reasonable assurance that the Licensee is capable of safely 
conducting licensed activities.

IV

    Accordingly, pursuant to Sections 81, 161b., 161i., 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, 
effective immediately, that:
    A. The authority to perform radiographic operations under License 
No. 47-35507-01 is hereby suspended pending further notice by the NRC.
    B. The Licensee shall not receive any NRC-licensed material while 
this Order is in effect. If the Licensee currently possesses any NRC-
licensed material, the Licensee shall return it to locked, safe storage 
at the Licensee's facilities. All other requirements of the license and 
applicable Commission requirements, including those in 10 CFR part 20 
remain in effect.
    C. All records related to licensed activities shall be maintained 
in their current form and must not be altered in any way.
    The Director, Office of Enforcement, or designee, may, in writing, 
relax or rescind this order upon demonstration by the Licensee of good 
cause.

V

    In accordance with 10 CFR 2.202, the Licensee must submit an answer 
within 20 days of the date of this Order under written oath or 
affirmation. The answer shall specifically admit or deny each 
allegation or charge made within the Order, and shall set forth matters 
of fact and law on which the Licensee relies, and, if the Order is not 
consented to, the reasons as to why the Order should not have been 
issued. The response should be clearly marked as a ``Reply to Order, 
(EA-19-090),'' and sent to the U.S. Nuclear Regulatory Commission, 
ATTN: Document Control Desk, Washington, DC 20555-0001 with a copy to 
the Regional Administrator, Region I, 2100 Renaissance Boulevard, Suite 
100, King of Prussia, PA 19406.
    In addition, the Licensee may demand, and any other person 
adversely affected by this Order may request a hearing on this Order 
within 20 days of its publication in the Federal Register. 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 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

[[Page 45556]]

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 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 website at http://www.nrc.gov/site-help/e-submittals/apply-certificates.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 website at 
http://www.nrc.gov/site-help/e-submittals.html. Participants may 
attempt to use other software not listed on the website, 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 EIE, users will be required to install a web 
browser plug-in from the NRC website. Further information on the web-
based submission form, including the installation of the Web browser 
plug-in, is available on the NRC's public website 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 public website 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 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 agency'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 website at 
http://www.nrc.gov/site-help/e-submittals.html, by email at 
[email protected], or by a toll-free call at (866) 672-7640. The 
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m., ET, 
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 
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 
https://adams.nrc.gov/ehd, unless excluded pursuant to an order of the 
Commission or the presiding officer. If you do not have an NRC-issued 
digital ID certificate as described above, click cancel when the link 
requests certificates and you will be automatically directed to the 
NRC's electronic hearing dockets where you will be able to access any 
publicly available documents in a particular hearing docket. 
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 the Licensee requests a hearing, that person 
shall set forth with particularity the manner in which his interest is 
adversely affected by this Order and shall address the criteria set 
forth in 10 CFR 2.309(d) and (f).
    If a hearing is requested by a licensee or a person whose interest 
is adversely affected, the Commission will issue an Order designating 
the time and place of any hearings. If a hearing is held, the issue to 
be considered at such hearing shall be whether this Order should be 
sustained. Pursuant to 10 CFR 2.202(c)(2)(i), the Licensee or any other 
person adversely affected by this Order, may, in addition to demanding 
a hearing, at the time the answer is filed or sooner, move the 
presiding officer to set aside the immediate effectiveness of the Order 
on the ground that the Order, including the need for immediate 
effectiveness, is not based on adequate evidence but on mere suspicion, 
unfounded allegations, or error. In the absence of any request for 
hearing, or written approval of an extension of time in which to 
request a hearing, the

[[Page 45557]]

provisions specified in Section IV above shall be final 20 days from 
the date this 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 IV shall 
be final when the extension expires if a hearing request has not been 
received. An answer or a request for hearing shall not stay the 
immediate effectiveness of this order.
    For the Nuclear Regulatory Commission.

/RA/

George A. Wilson,
Director, Office of Enforcement.

    Dated this 22 day of August 2019.

[FR Doc. 2019-18645 Filed 8-28-19; 8:45 am]
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