[Federal Register Volume 59, Number 91 (Thursday, May 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1153]
[[Page Unknown]]
[Federal Register: May 12, 1994]
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NUCLEAR REGULATORY COMMISSION
[Docket Nos. 030-05260, 070-00314, 040-08188, License Nos. 29-01442-01,
SMC-1181, SNM-296; EA 94-043]
Ledoux and Co., Teaneck, NJ; Order Suspending Licenses
I
Ledoux and Company (Licensee) is the holder of Byproduct, Source
Material, and Special Nuclear Material Licenses Nos. 29-01442-01, SMC-
1181, and SNM-296 (Licenses), respectively, issued by the Nuclear
Regulatory Commission (NRC or Commission) pursuant to 10 CFR parts 30,
40, and 70.
Byproduct material License No. 29-01442-01 authorizes the Licensee
to possess byproduct material for use in the analysis of fission
products and neutron-induced radionuclides in various materials, and to
possess byproduct material to be used in the calibration of radioassay
equipment, including the development of analytical chemical procedures.
Byproduct material License No. 29-01442-01 was originally issued on
November 20, 1956, was most recently renewed on March 8, 1989, and was
due to expire on March 31, 1994, but has remained in effect pursuant to
10 CFR 30.37 and a timely request for renewal by the Licensee in
accordance with a Licensee letter dated February 24, 1994.
Source Material License No. SMC-1181 authorizes the Licensee to
possess source material for analysis of samples and preparation and use
of working standards.
Source Material License No. SMC-1181 was originally issued on
December 14, 1973, was most recently renewed on January 10, 1991, and
is due to expire on January 31, 1996.
Special Nuclear Material License No. SNM-296 authorizes the
Licensee to possess plutonium and uranium-235 for use in laboratory
sample analysis and calibration of instruments. Special Nuclear
Material License SNM-296 was originally issued on April 1, 1959. This
license was most recently renewed on March 13, 1989, and was due to
expire on March 31, 1994, but has remained in effect pursuant to 10 CFR
303.37 and a timely request for renewal by the Licensee in accordance
with a Licensee letter dated February 24, 1994.
II
As of July 27, 1990, the Licensee was required to comply with the
regulations set forth in 10 CFR 30.35, 10 CFR 40.36, and 10 CFR 70.25.
These regulations require that licensees authorized to possess licensed
material in the amounts listed in the above-listed Licenses, must
submit a certification of financial assurance or a decommissioning
funding plan to the NRC. These regulations have been established to
assure that licensees demonstrate adequate financial responsibility
that funds necessary for a safe decommissioning are available and
planned, thus providing adequate assurance that the facility will be
decommissioned prior to terminating licensed activities.
On August 18, 1992, the NRC issued a Demand for Information to the
Licensee since the NRC had not, as of that date, received financial
assurance from the Licensee. The Demand for Information was issued to
determine whether the Licenses should be modified, suspended or
revoked. NRC sent letters dated October 21, 1992, and November 16, 1993
to the Licensee, and telephone conversations were held with the
Licensee on September 28, 1990, January 13, 1992, December 14, 1993,
and January 5, 1994, emphasizing the importance of providing the NRC
the required financial assurance. Furthermore, an NRC inspection was
conducted on October 18-19, 1993 (during which the Licensee committed
to provide the required financial assurance by the end of 1993), and an
enforcement conference was held with the Licensee on March 15, 1994, to
emphasize the significance with which the NRC viewed the failure to
provide financial assurance.
In response to the NRC Demand for Information, dated August 18,
1992, Ledoux and Company provided, by letter dated September 10, 1992,
a decommissioning cost estimate of $113,013. However, a financial
assurance mechanism to cover the estimated amount was not provided. On
November 5, 1993, the Licensee informed the NRC by letter that it
intended to establish an escrow account in the amount of $125,000 as
its financial assurance mechanism by January 1, 1994. On December 28,
1993, the Licensee informed the NRC by letter that it needed more time
to provide a suitable financial assurance mechanism due to unforeseen
circumstances. During the enforcement conference on March 15, 1994,
Ledoux and Company representatives indicated that a financial assurance
mechanism would not be provided in the next month. On April 5, 1994,
the Licensee stated in a letter that it was planning to provide 2
``letters of credit * * *'' and that it would need some time. However,
to date no financial assurance mechanism has been provided to the NRC.
III
As described in Section I, the Licensee is authorized to receive,
possess, use, and transfer a wide range of byproduct material, special
nuclear material, and source material in quantities set forth in its
Licenses. The regulations specified in 10 CFR 30.35, 10 CFR 40.36, and
10 CFR 70.25 require licensees to provide financial assurance such that
licensed facilities will be decommissioned in a safe and timely manner,
and that adequate funds will be available for decommissioning to ensure
that the health and safety of the public is protected. The Licensee has
continually failed to provide to the NRC the required financial
assurance contrary to the requirements in 10 CFR 30.35, 10 CFR 40.36,
and 10 CFR 70.25, yet continues to perform NRC-licensed activities. The
Licensee is either unwilling or unable to comply with the financial
assurance requirements. The public health and safety require the
Licensee to have adequate funds and financial assurance for
decommissioning to ensure that decommissioning of the Licensee's
facilities can be completed in a safe and timely manner.
Consequently, I lack the requisite reasonable assurance that
sufficient funding will be available for decommissioning of the
facility in compliance with Commission requirements, and that the
health and safety of the public, including the Licensee's employees,
will be protected in connection with the decommissioning of the
Licensee's facilities. This is significant should the Licensee
discontinue operations without appropriate financial assurance for the
decommissioning. Therefore, the public health, safety, and interest
require that License Nos. 29-01442-01, SMC-1181, and SNM-296 be
suspended.
IV
Accordingly, pursuant to sections 51, 62, 63, 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 parts 30, 40, and
70, it is hereby ordered that License Nos. 29-01442-01, SMC-1181, and
SWM-296, are suspended pending the submittal to NRC by the licensee of
appropriate financial assurance in the amount of $125,000.00 for its
licensees in accordance with 10 CFR 30.35, 10 CFR 40.36, and 10 CFR
70.25, and the NRC's written acceptance of the licensee's submittal(s)
to satisfy these regulatory requirements. While the Licenses are
suspended, the Licensee shall not receive, use, manufacture,
distribute, or transfer radioactice material and shall place all
licensed material in locked storage.
The Regional Administrator, Region I, may, in writing, relax or
rescind this Order upon demonstrator by the Licensee of good cause.
V
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. The answer may consent to this Order. Unless the
answer consents of this Order, the answer shall, in writing and under
oath or affirmiation, 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, Docketing
and Service Section, Washington, DC 20555. Copies of the hearing
request also should be sent to the Director, Office of Enforcement,
U.S. Nuclear Regulatory Commission, Washington, DC 20555, to the
Assistant General Counsel for Hearings and Enforcement at the same
address, to the Regional Administrator, NRC Region I, 475 Allendale
Road, King of Prussia, Pennsylvania, 19406, 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 or a person whose
interest is adversely affected, the Commission will issue on 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.
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.
Dated at Rockville, Maryland, this 4th day of May 1994.
For the Nuclear Regulatory Commission.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 94-1153 Filed 5-11-94; 8:45am]
BILLING CODE 7590-01-M
