[Federal Register Volume 64, Number 26 (Tuesday, February 9, 1999)]
[Notices]
[Pages 6384-6386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3095]
=======================================================================
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[IA 98-061]
Randall W. Allmon; Confirmatory Order Prohibiting Involvement in
NRC-Licensed Activities (Effective Immediately)
I
Randall W. Allmon is employed by March Metalfab, Inc. (MMI) as a
Project Manager. MMI is a subcontractor of Sierra Nuclear Corporation
(SNC), which holds NRC Certificate of Compliance 72-1007 for the VSC-24
cask, used by general licensees, Palisades Nuclear Plant (PNP) and
Arkansas Nuclear One (ANO). The general license (10 CFR 72.210) relied
on by PNP and ANO is for the storage of spent nuclear fuel under 10 CFR
Part 72.
[[Page 6385]]
II
In March 1995, PNP loaded spent fuel into a multi-assembly sealed
basket (MSB) spent fuel cask that had been supplied by SNC and
fabricated by MMI. When the cask was pressurized with helium, two leaks
were identified in the wall of the MSB adjacent to the closure weld.
Subsequent analysis by PNP metallurgical personnel determined that the
defects were caused by underbead or hydrogen cracking, resulting from a
base metal weld repair to the MSB shell inner wall that was performed
during MSB manufacturing. The NRC staff learned of the problem
experienced by PNP as a result of inspection activities following a
similar closure weld failure at ANO. The staff became concerned that
undetected cracks in other MSBs, produced by SNC that were already
loaded with spent fuel, could propagate while the casks were in
storage, affecting the integrity of the cask confinement boundary. As a
result, during the week of March 17-21, 1997, a special inspection was
conducted at SNC and MMI.
During the special inspection, five MMI employees who were
considered most likely to have been aware of the fabrication activities
during the manufacture of the MSBs that failed were interviewed. In his
interview at this time, regarding temporary attachments and weld
repairs, Mr. Allmon stated that there was no reason to use temporary
attachments and the only weld repairs would be those for repair of
lifting clamp marks and the lifting clamp area was within approximately
the first 2.5 inches from the top of the cask. Mr. Allmon stated that
no welding was done on the inside of the top area of the MSB where the
``tear'' occurred during the closure welding at PNP.
In July 1997, the NRC conducted a further inspection of MMI and
SNC. During that inspection, employees of both companies acknowledged
that undocumented welds had been made on casks sold to ANO and PNP. In
the course of this inspection, both Mr. Allmon, the Project Manager and
the Quality Assurance Manager for MMI admitted that they were aware
that repair welding had been performed on the inside of the MSBs during
fabrication and that they had not informed the NRC inspectors of those
welds during the March 1997 inspection interviews. The NRC continued to
investigate the matter and the Office of Investigations issued its
report on October 16, 1998.
The NRC has concluded that because Mr. Allmon was knowledgeable
about the fabrication process and was aware that welding had been done
on the insides of the MSBs, he deliberately made statements in March
1997 to SNC and to the NRC that were inaccurate concerning the internal
welding. The information involved was material to the NRC's
understanding as to the quality of the MSBs and delayed the NRC's
action to ensure integrity of MSBs. As a result, the NRC has further
concluded that in providing the information, Mr. Allmon violated 10 CFR
72.11, ``Completeness and Accuracy of Information'' and 10 CFR 72.12,
``Deliberate Misconduct.'' The NRC believes that the circumstances of
this matter raise questions as to Mr. Allmon's willingness to comply
with Commission requirements. Mr. Allmon has not admitted that a
violation occurred.
III
In a telephone call on December 7, 1998, Mr. Allmon agreed to
issuance of a Confirmatory Order prohibiting him from engaging in NRC-
licensed activities for a period of five years from the date that the
Order is issued. The staff believes that this will adequately protect
the public heath and safety and, therefore, finds this acceptable. MMI
and Mr. Allmon requested that if the Order is issued, they be allowed
to complete work on one small existing contract to supply 10 plug
assemblies for a NUHOMS cask. This provision is acceptable, as the
assemblies have a limited safety function that can be verified by
measurement at the time of use. On January 6, 1999, the staff forwarded
to Mr. Allmon a copy of the factual basis of the proposed order and the
implementation paragraph. On January 11, 1999, Mr. Allmon consented to
the issuance of the order with those provisions and waived his rights
to a hearing on this action.
I find that Mr. Allmon's commitments as set forth in Section IV 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 the public health and safety require
that Mr. Allmon's commitments be confirmed by this Order. Based on the
above and Mr. Allmon's consent to this action, this Order is
immediately effective upon issuance.
IV
Accordingly, pursuant to sections 53, 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, 10 CFR part 72, and 10 CFR 72.12, it is
hereby ordered, effective immediately, as follows:
A. Except as noted in paragraph B, Mr. Allmon is prohibited for
five years from the date of this Order from any involvement in NRC-
licensed activities. For purposes of this Order, licensed activities
include providing or supplying, whether directly to NRC licensees or
Certificate of Compliance holders, or as a contractor or subcontractor
to a licensee or Certificate of Compliance holder, structures, systems,
or components, subject to a procurement contract specifying compliance
with 10 CFR Ch. I.
B. Mr. Allmon may complete work on the contract that MMI entered
into prior to the date of this order to fabricate a total of 10 plug
assemblies for a NUHOMS cask.
The Director, Office of Enforcement, may relax or rescind, in
writing, any of the above conditions upon a showing by Mr. Allmon of
good cause.
V
Any person adversely affected by this Confirmatory Order, other
than Mr. Allmon, may request a hearing within 20 days of its issuance.
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. Any request for a hearing shall be
submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN:
Rulemakings and Adjudications Staff, Washington, DC 20555. Copies also
shall be sent to the Director, Office of Enforcement, U.S. Nuclear
Regulatory Commission, Washington, DC 20555, to the Deputy Assistant
General Counsel for Enforcement, and to the Director, Office of Nuclear
Materials Safety and Safeguards, at the same address, and to Sierra
Nuclear Corporation. If such a person requests a hearing, that person
shall set forth with particularity the manner in which his or her
interest is adversely affected by this Order and shall address the
criteria set forth in 10 CFR 2.714(d).
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
[[Page 6386]]
hearing, the provisions specified in Section IV above shall be final 20
days from the date of this Order 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.
Dated this 27th day of January 1999.
For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 99-3095 Filed 2-8-99; 8:45 am]
BILLING CODE 7590-01-P
