[Federal Register Volume 61, Number 100 (Wednesday, May 22, 1996)]
[Notices]
[Pages 25694-25696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12810]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 030-30266, License No. 30-23697-01E, EA 96-170]
Innovative Weaponry, Inc., Albuquerque, New Mexico; Confirmatory
Order Modifying License (Effective Immediately)
I
Innovative Weaponry, Inc. of Nevada, (IWI or Licensee) is the
holder of NRC License No. 30-23697-01E issued by the Nuclear Regulatory
Commission (NRC or Commission) pursuant to 10 CFR Part 30. The license
authorizes the Licensee to distribute byproduct material (i.e.,
tritium) in gunsights as specified in the license. The license was
transferred from IWI of New Mexico to IWI of Nevada on April 3, 1995.
Although due to expire on June 30, 1993, the license has remained
active based on a timely renewal application.
II
Based on its review of the results of an NRC investigation
conducted from May 9, 1995, through March 22, 1996, the NRC identified
the following apparent violations of IWI's license conditions: (1) IWI
distributed tritium in gunsights not approved by the NRC and not
specifically authorized on the license; and (2) IWI distributed tritium
sources obtained from a manufacturer not authorized on the license. In
addition, as indicated in a letter issued to IWI on April 17, 1996, it
appeared that the violations were committed by the President and
Executive Vice President of the company.
These apparent violations and the concern that they were committed
by the President and Executive Vice President were discussed with IWI
representatives at a predecisional enforcement conference in Rockville,
Maryland on April 23, 1996. The Licensee admitted that violations had
occurred but denied that there was any intent to commit the violations.
Notwithstanding the Licensee's position on intent, the NRC is concerned
that the violations resulted from a lack of effective action to assure
compliance with license requirements, despite IWI officials being aware
that the NRC license contained limitations on what could and could not
be distributed.
III
As a result of the NRC investigation, the NRC staff questioned
whether it should have the requisite reasonable assurance that IWI will
comply with agency requirements. At the predecisional enforcement
conference and a meeting on the same date to discuss license amendment
issues, the Licensee voluntarily committed to actions to address the
NRC's concerns about its ability to conduct its activities in
compliance with the license and applicable NRC requirements. The
Licensee offered to develop the following plans and to submit them to
the NRC for approval: (1) a training plan to assure that all IWI
employees, including management, understand the
[[Page 25695]]
NRC license and applicable NRC requirements; (2) an audit plan to
assure compliance with requirements to be implemented by a third-party,
independent auditor; and (3) development of written procedures to
maintain accountability, control, and security of materials authorized
by the NRC for distribution. The NRC has concluded that implementation
of these commitments, which are described in more detail below, would
provide the necessary assurance that licensed activities will be in
compliance with NRC requirements in the future.
I find that the Licensee's commitments set forth at the
predecisional enforcement conference and licensing meetings conducted
on April 23, 1996, are acceptable and necessary and conclude that with
these commitments the public health, safety and interest are reasonably
assured. In a telephone call on May 8, 1996, with Mr. James
Tourtellotte, the Licensee's attorney, the Licensee agreed to this
action. I have also determined, based on the Licensee's consent and on
the significance of the conduct described above, that the public health
and safety require that this Order be immediately effective.
IV
Accordingly, pursuant to sections 81, 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 and 10 CFR Part 30, IT IS HEREBY ORDERED,
EFFECTIVE IMMEDIATELY, THAT LICENSE NO. 30-23697-01E IS MODIFIED AS
FOLLOWS:
1. The Licensee shall submit for NRC approval, within 30 days of
the issuance of this Order, a training plan designed to assure that all
IWI employees, including management, who are involved in activities
that may affect compliance with the NRC license are familiar with the
conditions and restrictions contained in the license, as well as with
all other applicable NRC requirements. The training plan also shall
provide for training in accountability, control, and security of
licensed material in gunsights authorized by the NRC for distribution
to persons exempt from licensing. The training plan shall provide for
initial training of all existing employees, including management,
within 30 days of the issuance of this Order, training for new
employees, including management, prior to their working with licensed
materials, and annual refresher training thereafter.
2.a. The Licensee shall submit for NRC approval, within 30 days of
the date of this Order, the name and qualifications of an independent
auditor or auditors whom the Licensee proposes to conduct the audits
described below and who are capable of conducting such audits to assure
compliance with all NRC license conditions and requirements.
b. The Licensee shall submit for NRC approval, within 30 days of
the NRC's approval of the above auditor, an audit plan which shall
provide for periodic audits to assure compliance with all NRC license
conditions and requirements. The audit plan shall provide for an
initial audit, followed by quarterly audits for a 1-year period, and
semi-annual audits thereafter. The audit plan shall provide for audit
reports to be issued to the Licensee and the NRC at the same time
within 30 days of the completion of each audit. The audit report shall
contain findings on the Licensee's state of compliance with NRC
requirements and recommendations to achieve compliance if deficiencies
are noted. The plan shall provide for the Licensee to respond in
writing to all audit findings within 30 days of each audit report, with
a copy to the NRC. The response shall state the actions taken by the
licensee to address audit recommendations with which the Licensee
agrees. For those recommendations that the Licensee disputes, the
Licensee shall provide the basis for dispute and any other action
taken.
3. The Licensee shall develop and implement, within 30 days of the
issuance of this Order, written procedures designed to maintain
inventory and accountability of gunsights with sources authorized by
the NRC for distribution to persons exempt from licensing.
4. Upon approval of the actions required under items 1 and 2.a
above, items 1 and 2.b shall be implemented until relaxed by the
Regional Administrator, Region IV.
5. Requests for approval of the auditor, audit plan, training plan,
and for changes of the approved auditor, changes to the audit plan, and
to reports required to be submitted, shall be submitted to the Regional
Administrator, Region IV, with a copy to the Director, Office of
Nuclear Materials Safety and Safeguards.
The Regional Administrator, Region IV, may relax or rescind, in
writing, any of the above conditions upon a showing by the Licensee of
good cause.
V
Any person adversely affected by this Confirmatory Order, other
than the Licensee, 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, D.C. 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: Chief, Docketing and Service 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, and to the
Licensee. If such a person 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 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.
Pursuant to 10 CFR 2.202(c)(2)(i), any person other than the
Licensee, adversely affected by the 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, 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.
For the Nuclear Regulatory Commission.
[[Page 25696]]
Dated at Rockville, Maryland this 15th day of May 1996.
James Lieberman,
Director, Office of Enforcement.
[FR Doc. 96-12810 Filed 5-21-96; 8:45 am]
BILLING CODE 7590-01-P
