[Federal Register Volume 61, Number 5 (Monday, January 8, 1996)]
[Notices]
[Page 562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-212]
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NUCLEAR REGULATORY COMMISSION
[No. IA 95-058]
Five Star Products, Inc. and Construction Products Research
Fairfield, Connecticut and H. Nash Babcock; Stipulation Between Nuclear
Regulatory Commission and Five Star Products, Inc., Construction
Products Research, Inc., and H. Nash Babcock
Representatives of the Nuclear Regulatory Commission (``NRC'') and
Five Star Products, Inc., Construction Products Research, Inc. (``the
Companies''), and H. Nash Babcock have met and have decided to resolve
this matter as addressed in this Stipulation as set out below.
Stipulation
The NRC, the Companies, and H. Nash Babcock stipulate to the
following:
1. The Companies and H. Nash Babcock are free to sell commercial-
grade products to anyone in the nuclear industry, as they now do.
``Commercial-grade'' is defined as in 10 CFR Part 21 of the
Commission's regulations. Five Star Products' commercial-grade
materials may be used in any safety-related applications provided that
NRC licensees properly dedicate the materials for use as basic
components and verify their suitability for the applications. As of the
date of the settlement, NRC has not evaluated the quality of Five Star
Products' materials, nor has the NRC received reports that Five Star
Products' materials contain defects.
2. The NRC hereby relaxes and modifies paragraph 1 and 2 of Section
VI of the Order as follows:
``1. Until the Companies or H. Nash Babcock or any concern which is
owned, controlled, operated or managed by H. Nash Babcock, satisfy the
provisions of paragraph 2 below, they are prohibited from:
A. providing or supplying structures, systems, or components,
including grout and concrete, subject to a procurement contract
specifying compliance with 10 C.F.R. Part 50 Appendix B; and
B. providing or supplying basic components, including grout and
concrete, subject to a procurement contract specifying that the
contract is subject to the requirements of 10 CFR Part 21;
2.A. If the Companies, or any concern owned, controlled, operated
or managed by H. Nash Babcock, desire to lift the prohibitions
specified in paragraph 1.A and 1.B, above, then the Companies, H. Nash
Babcock, or the concern owned, controlled, operated, or managed by H.
Nash Babcock, shall, at least 90 days prior to the date it desires to
have the prohibition lifted:
(1) Advise the NRC of that intent in writing;
(2) Deleted.
(3) Agree in writing, under oath or affirmation, and in fact, to
permit the NRC, NRC licensees, and contractors performing QA functions
for such licensees, to inspect the records, premises, basic components
and activities of the Companies or of any concern owned, controlled,
operated or managed by H. Nash Babcock that desires to provide safety-
related products or basic components, or to perform tests to support
claims that those products or components and those testing services
meet the standards of 10 CFR Part 50 Appendix B and 10 CFR Part 21, and
to signify in writing a willingness to do so in the future;
(4) Agree in writing under oath or affirmation to demonstrate and
in fact to demonstrate that those basic components and services
associated with basic components meet the standards of 10 CFR Part 50
Appendix B by having tests performed by a mutually acceptable third
party and having that third party provide copies of the results of
those tests directly to the NRC; and
(5) The officers, managers, and supervisors of the Companies
provide statements that they understand that the activities and records
of the organization are subject to NRC inspection and that
communications with the NRC must be complete and accurate;
B. When all conditions of paragraph 2.A above have been satisfied,
and the NRC has conducted inspections of the QA program and Part 21
program of the Companies or of any concern owned, controlled, operated,
or managed by H. Nash Babcock, and any necessary corrective action has
been completed, the prohibitions of paragraphs 1.A and 1.B, above, will
be lifted in writing.''
3. Except for the enforcement action reflected in the above-relaxed
Order and this Stipulation, the NRC will neither impose, nor seek to
impose, any sanction (other than as set forth in the relaxed Order and
Stipulation) on the Companies or their officers and employees or H.
Nash Babcock for the alleged violations described in the NRC Order
issued on December 1, 1995.
4. All matters involving the termination of employment of Mr.
Edward P. Hollub are not covered by, or affected by, this Stipulation,
the Stipulation is without prejudice to the parties' positions with
respect to the Commission's jurisdiction or lack thereof over
employment matters, and the NRC, the Companies, any other related
company, and H. Nash Babcock retain all rights in any such case,
matter, proceeding, or litigation now pending or which may hereinafter
be instituted.
5. In light of this Stipulation, the Companies and H. Nash Babcock
agree not to request a hearing on the matters addressed in the Order
issued on December 1, 1995 and relaxed as described herein, despite
their vigorous disagreement with some of the allegations contained in
the December 1, 1995 Order.
6. The NRC, the Companies, and H. Nash Babcock agree that the
allegations in the Order have not been made subject to an evidentiary
hearing, and that this Stipulation will obviate the necessity for such
a hearing, and they therefore agree that those allegations shall not
estop any party from taking a different position on such matters in any
other case, litigation, matter, or proceeding.
7. The Order as relaxed herein shall be effective upon execution of
this Stipulation. This Stipulation shall be published in the Federal
Register.
8. The persons signing below certify by their signatures that they
have authority to sign this Stipulation for the entities appearing
below their names.
Dated: December 28, 1995.
For the United States Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement, U.S. Nuclear Regulatory Commission.
Washington, DC 20555-0001
(301) 415-2741
Michael F. McBride,
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
1875 Connecticut Avenue, NW.,
Suite 1200
Washington, DC 20009-5728
(202) 986-8000
Attorney for Five Star Products, Inc., Construction Products
Research, Inc., and H. Nash Babcock.
[FR Doc. 96-212 Filed 1-5-96; 8:45 am]
BILLING CODE 7590-01-M
