[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Notices]
[Pages 19419-19421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9506]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 150-00003 and License No. ARK-740-BP-1-94 EA 94-241]
Otho G. Jones (d.b.a. Jones Inspection Services) Alderson,
Oklahoma; Order Suspending Authority Under General License (Effective
Immediately)
I
Jones Inspection Services is the holder of Radioactive Material
License ARK-740-BP-1-94 (License) issued by the State of Arkansas, an
NRC Agreement State. The License, as amended on December 22, 1994,
authorizes Jones Inspection Services to possess, store and use sealed
radioactive sources in various radiographic exposure devices in the
State of Arkansas. Jones Inspection Services does not hold a specific
NRC license. In accordance with 10 CFR 150.20, a general license is
granted to Agreement State licensees to conduct the same activities in
areas under NRC jurisdiction (referred to as ``reciprocity'') provided
that the NRC is notified and the other provisions of 10 CFR 150.20 are
followed.
II
On July 14, 1994, an NRC investigation was conducted to determine
whether Mr. Otho G. Jones, dba Jones Inspection Services, was using
regulated byproduct material in NRC jurisdiction without NRC
authorization. Based on interviews with Mr. Jones, the sole proprietor
of Jones Inspection Services, and on documents obtained from the
Central Oklahoma Oil and Gas Company, the investigation confirmed that
Jones Inspection Services had illegally used and possessed regulated
byproduct material in Oklahoma, a non-Agreement State in which the NRC
maintains regulatory authority over such material. The NRC's
investigation determined that Jones Inspection Services stored three
radiographic exposure devices containing sealed sources of radioactive
material in Oklahoma from at least January 1, 1994, to July 1994, and
that these devices had been used to perform industrial radiography in
Oklahoma from April 1, 1994, to June 27, 1994 for Central Oklahoma Oil
and Gas Company. The investigation also determined that these
activities were conducted without NRC authorization. Specifically, the
investigation found that Jones Inspection Services did not hold an NRC
license as required by 10 CFR 30.3 and that Jones Inspection Services
did not notify the NRC, in accordance with the provisions of 10 CFR
150.20, that it planned to conduct radiography at temporary job sites
in NRC jurisdiction. Thus, these activities were not subject to
inspection by the NRC to assure the protection of the public health and
safety.
In a signed statement Mr. Jones provided to the NRC investigator,
Mr. Jones said that he did not know he had to notify the NRC and did
not know to whom the information should be provided. Further, Mr. Jones
indicated that he ``did think to call the NRC about reciprocity, but I
am afraid of the NRC and did not want more hassle [sic] so I chose not
to call them about working in Oklahoma.'' Furthermore, Mr. Jones was
the sole proprietor of Tumbleweed X-Ray Company in September 1991 when
that company was issued an NRC order specifically suspending its
authority to conduct radiography activities in Oklahoma and other
states in which NRC maintained regulatory authority.\1\
\1\Otho G. Jones' previous company, Tumbleweed X-Ray Company,
was prohibited by Order for conducting licensed activities in non-
Agreement States until September 6, 1994. Thus, had Mr. Jones
notified the NRC of his intent to conduct radiography activities in
Oklahoma in early 1994, it is likely that the NRC would have acted
to prohibit those activities.
[[Page 19420]]
On July 21, 1994, the NRC issued a Confirmatory Action Letter (CAL
4-94-07) which described voluntary commitments made by Mr. Jones to
discontinue the use of three radiographic exposure devices in his
possession and to transfer the devices to authorized recipients. Mr.
Jones informed NRC Region IV personnel on the same date that he had
transferred two devices to an NRC licensee in the State of Oklahoma and
was preparing to ship a third device on or around August 8, 1994. These
commitments were replaced and superseded by the Order to Cease and
Desist Use and Possession of Regulated Byproduct Material in NRC
Jurisdiction dated July 26, 1994. Since that time, Mr. Jones has
received Amendment 07, dated December 22, 1994, to his Arkansas License
ARK-740-BP-1-94 to store radioactive byproduct material in the State of
Arkansas and at temporary job sites. This does not include areas under
NRC jurisdiction.
On January 31, 1995, the NRC conducted an enforcement conference
with Mr. Jones to ascertain the circumstances under which Mr. Jones
conducted licensed activities in NRC jurisdiction without obtaining a
specific or general use license. During that conference, Mr. Jones
stated, in part, that he was unaware of NRC requirements related to an
Agreement State licensee's conduct of radiography in the State of
Oklahoma (a non-Agreement State) and that he had made no effort to
determine what the requirements were. Based on the information provided
during the conference, it was determined that Mr. Jones was not
knowledgeable of current NRC requirements. While Mr. Jones stated that
he knew ``radiation safety [requirements] to the letter,'' he admitted
that he had ``no idea'' if NRC requirements for radiography had changed
in the last three years. Furthermore, despite the fact that Mr. Jones
filed for reciprocity in Kansas and Kentucky, both of which are
Agreement States, he did not take reasonable steps to determine the
reciprocity requirements for working in Oklahoma.
III
Based on the above, the NRC concludes that Mr. Otho G. Jones has
demonstrated careless disregard for NRC requirements. This resulted in
Mr. Jones' use of regulated byproduct material in NRC jurisdiction
without first acquiring an NRC specific use license or following the
reciprocity requirements of 10 CFR 30.3 and 10 CFR 150.20,
respectively. This is prohibited by Section 81 of the Atomic Energy Act
(AEA) of 1954, as amended, and by 10 CFR 30.3, which state that (except
for persons exempt as provided in 10 CFR Parts 30 and 150) no person
shall possess or use byproduct material, except as authorized in a
specific or general use NRC license.
Improper handling of byproduct material can result in unnecessary
exposure to radiation and, in some cases, serious injury. The Atomic
Energy Act and the Commission's regulations require that the possession
of licensed material be under a regulated system of licensing and
inspection. Mr. Jones' actions in this case prevented the NRC from
assuring, through licensing and inspection, that byproduct material is
being used safely and in accordance with all NRC requirements.
Based on Mr. Jones' lack of knowledge and competence in following,
and careless disregard for, NRC requirements, I lack the requisite
reasonable assurance that Jones Inspection Services can conduct
licensed activities in compliance with NRC requirements and that the
health and safety of the public will be protected in areas under NRC
jurisdiction should Mr. Jones, Jones Inspection Services, or any
successor entity engage in activities under the reciprocity provisions
of 10 CFR 150.20. Therefore, the public health, safety, and interest
require that the July 26, 1994 Order to Mr. Otho G. Jones, d.b.a. Jones
Inspection Services, be superseded by this Order to suspend Mr. Jones',
Jones Inspection Services', or any successor entity's authority granted
by 10 CFR 150.20 to conduct activities in NRC jurisdiction. This Order
is applicable to successor entities engaged in NRC or Agreement State
licensed activities within NRC jurisdiction wherein Mr. Jones is a
corporate officer or owner. Furthermore, pursuant to 10 CFR 2.202, I
find that the significance of the conduct described above is such that
the public health, safety and interest require that this Order be
immediately effective.
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, 10 CFR Part 30 and 10 CFR Part 150, It is
hereby ordered, effective immediately, that the authority of Mr. Otho
G. Jones, d.b.a. Jones Inspection Services, and any successor entity in
which Mr. Jones is a corporate officer or owner, to conduct activities
in areas under NRC jurisdiction under the general license granted by 10
CFR 150.20(a) is suspended.
The Regional Administrator, Region IV, may, in writing, relax or
rescind this Order upon demonstration by Mr. Jones for good cause. Any
request by Mr. Jones for relaxation or rescission of this Order must
address the following:
A. Demonstration of Mr. Jones' understanding of applicable NRC
requirements for the possession, storage and use of regulated byproduct
material in NRC jurisdiction prior to filing an NRC From 241 for
performance of licensed activities in areas of NRC jurisdiction under
the provisions of 10 CFR 150.20. This will require that Mr. Jones
complete a formal training process and satisfactorily pass a written
exam administered during the formal training process on NRC regulations
applicable to the use of regulated byproduct material. Formal training
shall be conducted by a consultant as described in paragraph B below or
another entity approved by NRC.
B. Retention of the services of an independent individual or
organization (consultant) to perform a program and process
implementation audit, to demonstrate Mr. Jones' knowledge of, and
compliance with, applicable NRC requirements, prior to Mr. Jones
conducting activities within NRC jurisdiction. The name and
qualifications of the consultant proposed to conduct the audit shall be
submitted to the Regional Administrator, NRC Region IV, for review and
approval. The consultant shall be independent of Mr. Otho Jones and
Jones Inspection Services and have experience in the implementation of
a radiation safety program and NRC requirements.
C. The audit required by Paragraph B shall be completed and Mr.
Jones shall have the consultant submit its audit report and any
recommendations for improvement to Mr. Jones and directly to the
Regional Administrator, NRC Region IV prior to Mr. Jones submitting an
NRC Form 241. This shall include the demonstrated resolution of any
weaknesses or negative findings identified by the audit or a statement
as to why the weaknesses or findings are not valid or do not need
correction. The audit of Mr. Jones' performance shall include, but not
be limited to:
1. A review of the administrative, operating and emergency
procedures to ensure that such procedures are appropriate and meet the
requirements established for working under NRC reciprocity
requirements. [[Page 19421]]
2. On-site review of Mr. Jones' field activities, and interviews
and observations of any selected authorized users (other than Mr.
Jones) working at various locations.
D. Mr. Jones shall provide notice to the NRC seven days prior to
working in areas of NRC jurisdiction under the provisions of 10 CFR
150.20.
V
In accordance with 10 CFR 2.202, Mr. Jones must, and any other
person adversely affected by this Order may, submit an answer to this
Order, and may request a hearing on this Order, within 20 days of the
date of this Order.
The answer may consent to this Order. Unless the answer consents to
this Order, the answer shall, in writing and under oath or affirmation,
specifically admit or deny each allegation or charge made in this order
and set forth the matters of fact and law on which Mr. Jones or other
person adversely affected relies and the reasons as to why the Order
should not have been issued. Any answer or request for a hearing shall
be submitted to the Secretary, U.S. Nuclear Regulatory Commission,
ATTN: Chief, Docketing and Services Section, Washington, D.C. 20555.
Copies also shall be sent to the Director, Office of Enforcement, U.S.
Nuclear Regulatory Commission, Washington, D.C. 20555, to the Assistant
General Counsel for Hearings and Enforcement at the same address, to
the Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite
400, Arlington, Texas 76011-8064, and to Mr. Jones, if the answer or
hearing request is by a person other than Mr. Jones. If a person other
than Mr. Jones 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 2.714(d).
If a hearing is requested by Mr. Jones or 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.
Pursuant to 10 CFR 2.202(c)(2)(i), Mr. Otho Jones, Jones Inspection
Services, 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, the provisions specified
in Section IV above shall be final 20 days from the date of this Order
without further order or proceedings. An answer or a request for
hearing shall not stay the immediate effectiveness of this order.
Dated at Rockville, Maryland this 11th day of April 1995.
For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards, and
Operations Support.
[FR Doc. 95-9506 Filed 4-17-95; 8:45 am]
BILLING CODE 7590-01-M
