[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18848]
[[Page Unknown]]
[Federal Register: August 3, 1994]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 150-00003; License No. ARK-740-BP-1-94; EA 94-138]
Otho Jones (DBA Jones Inspection Services), Alderson Oklahoma;
Order to Cease and Desist Use and Possession of Regulated Byproduct
Material in NRC Jurisdiction (Effective Immediately)
I
Jones Inspection Services is the holder of Radioactive Material
License ARK-740-BP-1-94 issued by the state of Arkansas, an NRC
Agreement State. The license authorizes Jones Inspection Services to
possess and use sealed radioactive sources in various radiographic
exposure devices at temporary job sites in the state of Arkansas. 10
CFR 150.20 of the NRC's regulations grants a general license to
Agreement State licensees to conduct the same activities in non-
Agreement States 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 Jones Inspection Services was using regulated byproduct
material in NRC jurisdiction without NRC authorization. Based on
interviews with Otho G. 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, which does not hold an NRC license, 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 radiographic exposure devices in Oklahoma from at least
January 1, 1994, to July 1994, and that these devices has 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 Otho Jones did not notify the NRC, in accordance with the
provisions of 10 CFR 150.20, that he planned to conduct radiography at
temporary job sites in NRC jurisdiction.\1\ Thus, these activities were
not subject to inspection by the NRC to assure the protection of the
public health and safety.
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\1\The NRC notes that Otho Jones' previous company, Tumbleweed
X-Ray Company, was prohibited by Order from 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 unlikely that the NRC
would have authorized those activities.
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In a signed statement Mr. Jones provided the NRC investigator, he
said he did not know he had to notify the NRC and did not know to whom
the information should be provided. However, Mr. Jones also said ``I
did think to call the NRC about reciprocity, but I am afraid of the NRC
and did not want me more hassel [sic] so I chose not to call them about
working in Oklahoma.'' Furthersome, as indicated in the footnote, 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.
On July 21, 1994, the NRC issued a Confirmatory Action Letter (CAL
4-94-70) 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 or
authorized locations. Mr. Jones informed NRC Region IV personnel on the
same date that he had already transferred two devices to an NRC
licensee in the state of Oklahoma and was preparing to ship a third
device to the manufacturer.
III
Based on the above, it appears that Otho G. Jones, the sole
proprietor of Jones Inspection Services, he willfully violated NRC
requirements and, notwithstanding his voluntary actions to transfer
three radiographic exposure devices, was and may continue to be in
violation of NRC requirements by possessing regulated byproduct
material in NRC jurisdiction without authorization, i.e., without
either an NRC license or a general license authorizing the use of this
material in the state of Oklahoma. 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 NRC license.
Improper handling of the byproduct material can result in
unnecessary exposure to radiation. 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. Given
the current circumstances surrounding Mr. Jones' possession of the
byproduct material and the facts associated with Mr. Jones' former
company (i.e., Tumbleweed X-Ray Company) to whom Mr. Jones was the sole
proprietor in 1991 and to which an NRC order was issued suspending its
authority to conduct radiography activities in Oklahoma and other
states, Mr. Jones has not demonstrated that he will comply with NRC
requirements.
Consequently, it appears that Mr. Jones is either unwilling or
unable to comply with NRC requirements and without Mr. Jones having an
NRC license, I lack the requisite reasonable assurance that the health
and safety of the public will be protected. Therefore, the public
health, safety, and interest require that Otho Jones and Jones
Inspection Services be required to cease and desist unauthorized
possession of regulated byproduct material and to provide certification
to the NRC that all regulated byproduct material has been transferred
to authorized recipients or authorized locations. Furthermore, pursuant
to 10 CFR 2.202, I find that the significance of the violation
described above is such that the public health, safety, and interest
require that this Order be immediately effective.
IV
Accordlingly pursuant to section 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 Otho G. Jones shall:
A. For all regulated byproduct material that remains in his
possession in Oklahoma or other states where the NRC maintains
jurisdiction effective from the date of this Order;
(1) Immediately cease and desist the use of all such material in
non-Agreement States within NRC jurisdiction;
(2) Immediately place all such material that is currently in states
within NRC jurisdiction in safe, locked storage pending transfer;
(3) Within five days of the date of this Order, complete the
transfer of all such material to an authorized recipient or to an
authorized location outside of NRC jurisdiction.
(4) Notify Ms. Linda Kasner, Chief of Nuclear Materials Inspection
Branch, NRC Region IV, at telephone number 817-860-8213, of the above
arrangements no later than one day prior to the actual transfer of this
material.
B. For all regulated byproduct material that is transferred in
accordance with the above terms, and all material that was transferred
between July 14, 1994, and the date of this Order:
1. Within 10 days of the date of this Order, certify in writing to
the NRC Regional Administrator, Region IV at the address in B.2 below,
under oath or affirmation, that such material was transferred, and
provide documentation showing the date of transfer and the recipient of
the material; and
2. The certification required in B.1 above must be sent to the
Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 400,
Arlington, Texas 76011.
C. Mr. Jones shall cease and desist from possession and use of
regulated byproduct material in NRC jurisdiction unless authorized in
accordance with 10 CFR 30.3 or 10 CFR 150.20.
The Regional Administrator, Region IV, may, in writing, relax or
rescind this order upon demonstration by the Licensee of good cause.
Dated at Rockville, Maryland this 26th day of July 1994.
For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards, and
Operations Support.
[FR Doc. 94-18848 Filed 8-2-94; 8:45 am]
BILLING CODE 7590-01-M
