98-8772. In the Matter of NDT Services, Inc., Caguas, Puerto Rico; Order Suspending License (Effective Immediately)  

  • [Federal Register Volume 63, Number 64 (Friday, April 3, 1998)]
    [Notices]
    [Pages 16588-16591]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-8772]
    
    
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    NUCLEAR REGULATORY COMMISSION
    
    [Docket No: 030-17711, License No: 52-19438-01, EA 98-108]
    
    
    In the Matter of NDT Services, Inc., Caguas, Puerto Rico; Order 
    Suspending License (Effective Immediately)
    
    I
    
        NDT Services, Inc. (Licensee or NDTS) is the holder of Material 
    License No. 52-19438-01 (License) issued by the Nuclear Regulatory 
    Commission (NRC or Commission) pursuant to 10 CFR Part 30. The License 
    authorizes possession and use of up to 100 curies of Iridium 192 in 
    each sealed radiography source and up to 20 curies of Cobalt 60 in each 
    sealed radiography source for performing industrial radiography. The 
    License was originally issued on August 21, 1980, was most recently 
    amended on December 12, 1995, and is due to expire on January 31, 2002.
    
    II
    
        On August 6 and October 4, 1997, the NRC Region II staff performed 
    inspections at the Licensee's facility and a temporary job site at the 
    Puerto Rico Electric Power Authority's San Juan Power Station. The 
    inspections determined that the Licensee had not conducted its 
    activities in accordance with NRC requirements. On November 7, 1997, 
    the NRC issued Inspection Report No. 52-19438-01/97-01 and Notice of 
    Violation (Notice) citing the Licensee for five violations identified 
    during the inspections. Briefly summarized, the violations involved the 
    Licensee's: (1) use of a set of Operating and Emergency Procedures that 
    were not evaluated or approved by the NRC; (2) certification of 
    individuals as radiographers who had not received required training; 
    (3) failure to conduct surveys or continuous monitoring where a source 
    was being exposed; (4) failure of an assistant radiographer to recharge 
    his pocket dosimeter at the beginning of his shift; based upon the 
    inspector's observation and the assistant radiographer's statement to 
    the inspector that he usually recharged his dosimeter when it reached a 
    reading of about 50 millirem and that he was unaware of the requirement 
    to recharge the dosimeter at the beginning of each shift; and (5) 
    failure to provide hazardous materials transportation training to its 
    employees. In an unsigned and undated written response, which was sent 
    by facsimile to the NRC on December 5, 1997, the Licensee responded to 
    the Notice. As a result of NRC questions concerning the Licensee's 
    response, the Licensee submitted a second signed but undated response 
    to the NRC, which was received by the NRC on March 17, 1998. In its 
    second response, the Licensee did not contest four of the violations; 
    however, with regard to the hazardous materials training violation, the 
    Licensee disputed the violation.
        On August 26, 1997, the NRC Office of Investigations (OI) initiated 
    an investigation to determine whether the Licensee and any of its 
    employees had willfully violated NRC requirements. In addition, on 
    February 6, 1998, the NRC inspected the Licensee's activities at a 
    temporary job site, Puerto Rico Power Authority's Costa Sur Power 
    Station. The OI investigation of these matters is still ongoing. 
    Nonetheless, based on the February 6, 1998 inspection and the OI 
    evidence to date, the following violations, in addition to the 
    violations
    
    [[Page 16589]]
    
    described in the November 7, 1997 Notice, have been identified to date:
        A. On February 6, 1998, the Licensee failed during two separate 
    source exposures at the Costa Sur Power Station to conduct operations 
    so that the dose in any unrestricted area did not exceed 2 millirem in 
    any one hour, as required by 10 CFR 20.1301(a)(2). Specifically, during 
    the first exposure the Licensee performed radiography operations in a 
    manner that created a dose in an unrestricted area of 22 millirems in 
    an hour based on a radiation field of 73 millirems per hour (mR/hr) 
    during an 18-minute exposure. Following identification of this example 
    by the NRC inspector, the NRC inspector reminded the Licensee 
    radiographer of the NRC requirements to survey and monitor areas 
    surrounding the radiography area to ensure that radiation areas in 
    unrestricted areas were not inadvertently created or that members of 
    the public were not being unnecessarily exposed to radiation. However, 
    approximately 30 minutes after the inspector's reminder, the Licensee 
    radiographer again performed radiography such that a dose was created 
    in another unrestricted area of 6 millirems in an hour based on a 
    radiation field of 19 mR/hr during an 18-minute exposure. The 19 mR/hr 
    radiation level was confirmed by the Licensee radiographer using two 
    survey meters.
        B. On February 6, 1998, the Licensee failed during two separate 
    source exposures (described in Paragraph II.A of this Order) to perform 
    adequate surveys and continuous monitoring, as required by License 
    Condition No. 21 (which requires the Licensee to comply with Section 
    6.3.1 of its application dated October 25, 1991). Specifically, during 
    these source exposures, no surveys or continuous monitoring were 
    conducted on levels above or below the level where radiography was 
    being conducted to ensure that radiation levels were within permissible 
    limits and that no one was being inadvertently exposed to radiation. 
    The failure to perform adequate surveys and continuous monitoring is a 
    repeat of a violation identified during the August and October 1997 
    inspections.
        C. On February 6, 1998, the Licensee failed during two separate 
    source exposures to post radiation areas, as required by 10 CFR 
    20.1902(a). Specifically, during these source exposures, the Licensee 
    radiographer failed to post the radiation areas described in Paragraphs 
    II.A and II.B of this Order. In addition, notwithstanding the 
    inspector's reminder of the need to post radiation areas, during the 
    second source exposure, the radiographer did not comply with 10 CFR 
    20.1902(a) in that the radiographer continued to perform radiography 
    activities (i.e., the second source exposure) without posting the 
    radiation area.
        D. On February 6, 1998, the Licensee failed to control the 
    restricted areas that are described in Paragraphs II.A and II.B of this 
    Order, as required by License Condition 21 (which requires the Licensee 
    to comply with Sections 6.1.1 and 6.4 of its application of October 25, 
    1991). Specifically, during the inspection, a non-licensee employee of 
    the Costa Sur Power Station, a member of the public, indicated he had 
    observed the radiographic operations while standing within the 
    radiation areas that should have been posted.
        E. Transcribed sworn statements by one or more individuals indicate 
    that, on multiple occasions between 1994 and 1997, the Licensee allowed 
    multiple individuals to work as radiographers when the individuals 
    failed to meet the training requirements, as required by License 
    Condition 12 ( which requires that licensed material be used by or 
    under the supervision and in the physical presence of trained 
    individuals).
        F. Transcribed sworn statements by one or more individuals indicate 
    that, on multiple occasions in 1994 and 1995, the Licensee permitted 
    assistant radiographers to conduct radiographic operations without 
    wearing dosimetry, as required by 10 CFR 34.33 (the requirement in 
    effect at the time of occurrence), and that, in 1995, Licensee 
    employees who retrieved a disconnected source at the Phillips Chemical 
    Company facility in Guayama, Puerto Rico, intentionally removed their 
    dosimetry and thereby failed to comply with 10 CFR 34.33.
        G. Transcribed sworn statements by one or more individuals indicate 
    that, in 1995, the Licensee failed to report the source disconnect 
    event that occurred at the Phillips facility, referenced in Paragraph 
    II.F of this Order, as required by 10 CFR 34.30 (the requirement in 
    effect at the time of occurrence).
        H. The Licensee failed to maintain, or provide to the NRC, complete 
    and accurate information, contrary to 10 CFR 30.9. Specifically:
        1. A daily pocket dosimeter reading log, required to be maintained 
    by 10 CFR 34.83(a) (the requirement in effect at time of occurrence), 
    reflected that, prior to the beginning of the shift on October 4, 1997, 
    a pocket dosimeter had been recharged when, in fact, it had not.
        2. The Licensee's undated responses to the November 7, 1997 Notice, 
    which are described above, were inaccurate. Specifically, in response 
    to the violation involving the failure of the assistant radiographer to 
    recharge his pocket dosimeter at the beginning of his shift, the 
    Licensee stated in both responses that the [assistant] radiographer 
    ``did not remember making the statement that he recharged his dosimeter 
    when it reached about 50 mR or that he was unaware of the requirement 
    to recharge the dosimeter at the beginning of each shift.'' This 
    assertion was not correct in that the employee was directed to sign an 
    internal document indicating that he did not recall making such 
    statement, when he had made the statement.
        3. Training records required by 10 CFR 34.31(c) (the requirement in 
    effect at time of occurrence) and License Condition 21 (which requires 
    the Licensee to conduct classroom training in accordance with Section I 
    of its application dated October 25, 1991), documented that two 
    individuals had received 40 hours of radiation safety training on 
    August 31, 1994, and January 10, 1995, respectively. However, the 
    Licensee only gave the individuals NUREG BR-0024, ``Working Safely in 
    Gamma Radiography,'' and asked them to read it.
        4. Radiation exposure records for calendar year 1995, required to 
    be maintained by 10 CFR 20.2106(a), did not reflect actual doses 
    received by Licensee employees who retrieved a disconnected source in 
    1995 described in Paragraph II.F of this Order because the involved 
    employees removed their dosimetry.
        I. Transcribed sworn statements by one or more individuals indicate 
    that, on multiple occasions between 1994 and 1997, and with the 
    knowledge of the Licensee's President/Radiation Safety Officer and the 
    Assistant Radiation Safety Officer, Licensee radiographers allowed 
    radiographers' assistants to conduct radiographic operations while 
    unsupervised, in violation of 10 CFR 34.44 (the requirement in effect 
    at the time of occurrence).
        J. Transcribed sworn statements by one or more individuals indicate 
    that, on multiple occasions between 1994 and 1997, Licensee 
    radiographers failed to stop work when Licensee employees' pocket 
    dosimeters went off-scale, in violation of License Condition 21 (which 
    requires the Licensee to meet Section 2.5.2 of its application dated 
    October 25, 1991).
    
    III
    
        In addition to the above, the Licensee's previous enforcement 
    history is pertinent to this Order in that on July 16, 1996, the NRC 
    issued to the Licensee
    
    [[Page 16590]]
    
    a Notice of Violation and Proposed Imposition of Civil Penalty (Notice) 
    for numerous and significant violations (EA 94-029). This Notice 
    included violations that directly resulted from the misconduct of the 
    Licensee's former President and former Radiation Safety Officer (RSO), 
    who willfully disregarded regulatory requirements, falsified documents, 
    and provided inaccurate and incomplete information to the NRC in 
    violation of 10 CFR 30.9. The Notice cited the Licensee for, among 
    other things, failure to utilize personnel who were trained and 
    qualified as radiographers in accordance with the requirements of 10 
    CFR 34.31(a), providing false information to the NRC regarding the 
    qualifications of two radiographers, and failure of two radiographers 
    to wear alarming ratemeters during radiographic and source disconnect 
    activities. In addition, on July 16, 1996, the NRC issued two 
    individual Orders against the Licensee's former President and former 
    RSO as a result of their deliberate misconduct. The Orders prohibited 
    the former President and former RSO from engaging in any licensed 
    activities for a period of five years. By letter dated August 15, 1996, 
    the Licensee responded to the July 16, 1996 Notice. In its response, 
    the Licensee admitted all of the violations. Among other things, it 
    acknowledged that ``NDTS Company officials ignored NRC and company 
    regulations and procedures,'' and outlined its corrective actions.
        Notwithstanding the Licensee's response to the July 16, 1996 Notice 
    of Violation, the Licensee has again been either unwilling or unable to 
    comply with numerous NRC requirements established to protect public 
    health and safety. As described above, the Licensee has violated a 
    number of NRC requirements which are extremely important to protecting 
    public health and safety, including that of Licensee employees. 
    Specifically, the Licensee allowed the conduct of radiographic 
    operations by unsupervised, inadequately-trained radiographer's 
    assistants, conducted operations such that the dose limits in 
    controlled areas accessible to the public exceeded those specified in 
    10 CFR 20.1301, failed to post or control radiation areas, failed to 
    monitor or conduct surveys in areas where a source was being exposed, 
    failed to report a source disconnect event as required by NRC 
    regulations, and failed to maintain complete and accurate numerous 
    required records. These violations have potential serious adverse 
    consequences for public health and safety because they could directly 
    cause unnecessary exposures and overexposures to the public and 
    Licensee employees. Therefore, the violations are of very significant 
    regulatory concern, irrespective of whether they resulted from willful 
    misconduct on the part of the Licensee, particularly in view of the 
    potential safety consequences inherent in not controlling radiographic 
    work sites and failing to properly train or supervise radiographers. In 
    addition, the fact that many of the violations which have been 
    identified to date are either repetitive or appear to be the result of 
    willful misconduct on the part of Licensee employees is of further 
    significant concern to the NRC. In addition, the Commission must be 
    able to rely on its licensees to provide complete and accurate 
    information to the Commission to ensure protection of public health and 
    safety.
    
    IV
    
        Consequently, in light of the above, I lack the requisite 
    reasonable assurance that the Licensee's current operations can be 
    conducted under License No. 52-19438-01 in compliance with the 
    Commission's requirements and that public health and safety, including 
    the health and safety of Licensee employees, will be protected. 
    Therefore, public health, safety, and interest require that License No. 
    52-19438-01 be suspended pending further order by the NRC and that 
    licensed material be placed in locked, safe storage. Furthermore, 
    pursuant to 10 CFR 2.202, I find that the significance of the 
    violations and conduct described above is such that public health, 
    safety, and interest require that this Order be immediately effective.
    
    V
    
        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. 52-19438-01 is hereby suspended pending further Order by the NRC. 
    The Licensee shall cease all radiographic operations and return all 
    byproduct material possessed under this license 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.
        B. Within 24 hours following issuance of this Order, the Licensee 
    shall contact Mr. Douglas M. Collins, Director, Division of Nuclear 
    Materials Safety, NRC Region II, or his designee, through the NRC 
    Operations Center at telephone number (301) 816-5100, and advise him of 
    the current location, physical status, and storage arrangements of 
    licensed material. A written response documenting this information 
    shall be submitted, under oath or affirmation, to the Regional 
    Administrator, NRC Region II, Atlanta Federal Center, 61 Forsyth 
    Street, SW, Suite 23T85, Atlanta, Georgia 30303-3415 within seven days 
    of receipt of this Order.
        C. If the Licensee removes licensed material from locked storage, 
    the Licensee shall notify NRC Region II 48 hours before removal of the 
    licensed material. The notice shall be provided to Mr. Douglas M. 
    Collins, Director, Division of Nuclear Materials Safety, NRC Region II, 
    or his designee, at telephone number (404) 562-4700.
        D. The Licensee shall not receive any NRC-licensed material while 
    this Order is in effect.
        E. All records related to licensed activities shall be maintained 
    in their current form and must not be altered in any way.
        The Regional Administrator, Region II, may, in writing, relax or 
    rescind this order upon demonstration by the Licensee of good cause.
    
    VI
    
        In accordance with 10 CFR 2.202, the Licensee 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. 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, D.C. 
    20555, and include a statement of good cause for the extension. 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 the Licensee 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, Rulemakings Adjudications Staff, 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 Deputy Assistant General Counsel
    
    [[Page 16591]]
    
    for Enforcement at the same address, and to the Regional Administrator, 
    NRC Region II, Atlanta Federal Center, 61 Forsyth Street, SW, Suite 
    23T85, Atlanta, Georgia 30303 and to the Licensee if the hearing 
    request is by a person other than the Licensee. 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 2.714(d).
        If a hearing is requested by the Licensee, 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), the Licensee 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 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. AN ANSWER OR A REQUEST FOR 
    HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF THIS ORDER.
    
        Dated at Rockville, Maryland this 27th day of March 1998.
    
        For the Nuclear Regulatory Commission.
    Ashok C. Thadani,
    Acting Deputy Executive Director for Regulatory Effectiveness.
    [FR Doc. 98-8772 Filed 4-2-98; 8:45 am]
    BILLING CODE 7590-01-P
    
    
    

Document Information

Published:
04/03/1998
Department:
Nuclear Regulatory Commission
Entry Type:
Notice
Document Number:
98-8772
Pages:
16588-16591 (4 pages)
Docket Numbers:
Docket No: 030-17711, License No: 52-19438-01, EA 98-108
PDF File:
98-8772.pdf