IR 05000214/2001001

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Discusses Rj Pate 911029 Memo Re Baker Sand Control 911009 Request to Terminate License 50-21401-01.Transfer for Commercial Use Not Authorized Under Exemption of 10CFR30.18
ML20045A296
Person / Time
Site: 03020611, 05000214
Issue date: 01/09/1992
From: Glenn J
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To: Pate R
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION V)
Shared Package
ML20042D066 List:
References
HPPOS-272, NUDOCS 9306100076
Download: ML20045A296 (5)


Text

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MEMORANDUM FOR: Robert J. Pate, Chief Nuclear Materials and Fuel Fabrication Branch Division of Radiation Safety and Safeguards, RV FROM: John E. Glenn, Chief Medical, Academic, and Commercial Use Safety Branch Division of Industrial and . Medical Nuclear Safety, NMSS l SUBJECT: REQUEST FOR INTERPRETATION OF 10 CFR 39.47, "RADI0 ACTIVE i MARKERS" This refers to your memorandum dated October 29, 1991, concerning Baker Sand Control's October 9, 1991, request to terminate NRC License No. 50-21402-01.

In its letter, Baker Sand indicated that because it would only use (and receive?) 1 microcurie cobalt-60 markers, then, pursuant to 10 CFR 30.18, it would not be required to be licensed.

While 30.18(a) states, in part, that individuals may transfer " exempt" quantities, this provision has been interpreted by NRC legal staff (see highlighted paragraph in Enclosure 1) as meaning an occasional or infrequent transfer on a noncommercial basis.

For example, this provision allows laboratories to occasionally transfer radioactive tissue samples, tagged compounds, counting standards, etc. Often the radioactive properties of the item are only incidental.

Paragraph 30.18(a) also states that a person is exempt from the requirements for a license, except as provided in paragraphs (c) and (d) of that section.

Paragraph 30.18(c) indicates that the section does not authorize transfer of byproduct material for commercial distribution.

Paragraph 30.18(d) indicates that no person may, for purposes of comercial distribution, transfer byproduct material except in accordance with a license issued pursuant to 10 CFR 32.18.

Note our legal staff's opinion (see last paragraph of Enclosure 1) that " commercial distribution" does not necessarily mean that money must change hands, instead it implies a transfer into the market or to the general public resulting in a benefit for the distributor.

It is our opinion that Baker Sand would clearly be transferring the markers for a commercial benefit. Therefore, transfer of collar markers by Baker Sand is not authorized under the exemption in 10 CFR 30.18.

Baker Sand does have the option to obtain an NRC distribution license under 10 CFR Part 32.

However, the products must meet the labelling, packaging, and product brochure requirements of 32.18, and Baker Sand must have a possessior license for each place of storage.

9306100076 920109 PDR ORG NRRB PDR _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ - _ _ - . .

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Robert.J. Pate-2-5 Nyg Generally speaking, only under a specific license issued pursuant to Part 39 is a person authorized to use (attach to pipe collars) and leave unlabeled radioactive markers in wells.

In developing Part 39, it was understood that radioactive markers are used and left in wells by licensees.

It was also understood that there is a possibility the well markers may later surface if the well casing is removed.

Based on information from a technical expert in this field, NRC staff understood that the markers usually fall to the ground as the casing is disassembled, but that sometimes the markers might be picked up by the workers conducting these operations.

Of course this raised some health and safety concerns.

In an effort to reconcile these concerns, it was decided to restrict the markers to the levels of activity listed in 10 CFR 30.71, thus reducing any health and safety risks.

This issue is further discussed in Enclosure 2 which is a page from the proposed rulemaking.

The staff also did not intend to require licensees to inventory or track the markers after the markers have been placed in a well.

The physical inventory requirements of 10 CFR 39.37 only pertain to the licensee's receipt and storage of the markers.

Nor was there any intent to place regulatory responsibility on the well owner or operator after the markers have been placed in a well.

A November 6, 1991, telefax from Beth Prange also raised some questions concerning reciprocity.

If Baker Sand's Texas or Louisiana licenses allow the company to use radioactive markers at temporary job sites, then the company is also allowed to use the markers under the 10 CFR 150.20 general license.

We do not consider this activity to be a transfer or disposal.

However, Baker Sand would continue to need an NRC license if it intends to possess and store the markers at its facilities in Alaska.

, , If you have any questions, please contact me at FTS 964-3418, Bruce Carrico

at FTS 964-2634, or Susan Greene at FTS 964 2686.

ve. - x, u ny: e John E. Glenn, Chief Medical, Academic, and Comercial j Use Safety Branch , ' Division of Industrial and i i Medical Nuclear Safety, NMSS I Enclosures: 1.

Memo dtd 7/21/88 2.

Proposed rule page , Distribution w/o encls IMAB-644 SLGreene IMNS Central Files NRC File Center IMAB r/f NMSS r/f RECunningham JGreeves JEGlenn MLamastra JBCarrico

  • See previous concurrence J

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01/07/92 :01/4 /92 0FFICIAL RECORD COPY PATE MEPO

, . . Robert.J. Pate-2-Generally speaking, only under a specific license issued pursuant to Part 39 is a person authorized to use (attach to pipe collars) and leave unlabeled radioactive markers in wells.

In developing Part 39, it was understood that radioactive markers are used and left in wells by licensees.

It was also understood that there is a possibility the well markers may later surface if the well casing is removed.

Based on information from a technical expert in this field, NRC staff understood that the markers usually fall to the ground as the casin; is disassembled, but that sometimes the markers might be picked up by the workers conducting these operations.

Of course this raised some health ari safety concerns.

In an effort to reconcile these concerns, it was decided t restrict the markers to the levels of activity listed in 10 CFR 30.71, thu' reducing any health and safety risks.

This issue is further discussed 11 Enclosure 2 which is a page from the proposed rulemaking.

The staff also did not intend to require licensees to inventory or track the markers after the markers have been placed in a well.

The physical inventory requirements of 10 CFR 39.37 only pertain to the licensee's receipt and storage of the markers.

Nor was there any intent to place regulatory responsibility on the well owner or operator after the markers have been placed in a well.

A November 6, 1991, telefax from Beth Prange also raised some questions concerning reciprocity.

If Baker Sand's Texas or Louisiana licenses allow the company to use radioactive markers at temporary job sites, then the company is also allowed to use the markers under the 10 CFR 150.20 general license.

We do not consider this activity to be a transfer or disposal.

However, Baker Sand would continue to need an NRC license if it intends to possess and store the markers at its facilities in Alaska.

If you have any questions, please contact me at FTS 492 0645, Bruce Carrico at FTS 964 0634, or Susan Greene at FTS 964 0686.

John E. Glenn, Chief Medical, Academic, and Commercial Use Safety Branch Division of Industrial and Medical Nuclear Safety, NMSS Enclosures: 1.

Memo dtd 7/21/88 2.

Proposed rule page Distribution O '

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's,,,,, <j .n . .m, - MEMORANDUM FOR: Robert J. Pate, Chief Nuclear Materials and Fuel Fabrication Branch Division of Radiation Safety and Safeguards, RV FROM: John E. Glenn, Chief Medical, Academic, and Commercial Use Safety Branch Division of Industrial and Medical Nuclear Safety, NHSS SUBJECT: REQUEST FOR INTERPRETATION OF 10 CFR 39.47, "RADI0 ACTIVE MARKERS" This refers to your memorandum dated October 29, 1991, concerning Baker Sand Control's October 9, 1991, request to terminate NRC License No. 50-21402-01.

In its letter, Baker Sand indicated that because it would only use (and receive?) 1 microcurie cobalt-60 markers, then, pursuant to 10 CFR 30.18, it would not be required to be licensed.

While 30.18(a) states, in part, that individuals may transfer " exempt" quantities, this provision has been interpreted by NRC legal staff (see highlighted paragraph in Enclosure 1) as meaning an occasional or infrequent transfer on a noncomercial basis.

For example, this provision allows laboratories to occasionally transfer radioactive tissue samples, tagged compounds, counting standards, etc. Often the radioactive properties of the item are only incidental.

Paragraph 30.18(a) also states that a per:on is exempt from the requirements for a license, except as provided in paragraphs (c) and (d) of that section.

Paragraph 30.18(c) indicates that the section does not authorize transfer of byproduct material for comercial distribution.

Paragraph 30.18(d) indicates that no person may, for purposes of comercial distribution, transfer byproduct material except in accordance with a license issued pursuant to 10 CFR 32.18.

Note our legal staff's opinion (see last paragraph of Enclosure 1) that "comercial distribution" does not necessarily mean that money must change hands, instead it implies a transfer into the market or to the general public resulting in a benefit for the distributor.

It is our opinion that Baker Sand would clearly be transferring the markers for a comercial benefit. Therefore, transfer of collar markers by Baker Sand is not authorized under the exemption in 10 CFR 30.18.

Baker Sand does have the option to obtain an NRC distribution license under 10 CFR Part 32.

However, the products must meet the labelling, packaging, and product brochure requirements of 32.18, and Baker Sand must have a possession license for each place of-i storag _ _ _ _ _.

, - , . . . Robert J. Pate-2- .. - ,8 s , Generally speaking, only under a specific lice. sued pursuant to Part 39 1s a person authorized to use (attach to pipe c' I and leave unlabeled radioactive markers in wells.

In developing Par * it was understood that , radioactive markers are used and left in wells by licensees.

It was also understood that there is a possibility the well markers may later surface if the well casing is removed.

Based on information from a technical expert in this field, NRC staff understood that the markers usually fall to the ground as the casing is cisassembled, but that sometimes the markers might be picked up by the workers conducting these operations.

Of course this raised some health and safety concerns.

In an effort to reconcile these concerns, it was decided to restrict the markers to the levels of activity listed in 10 CFR 30.71, thus reducing any health and safety risks.

This issue is further discussed in Enclosure 2 which is a page from the proposed rulemaking.

The staff also did not intend to require licensees to inventory or track the markers after the markers have been placed in a well.

The physical inventory requirements of 10 CFR 39.37 only pertain to the licensee's receipt and storage of the markers.

Nor was there any intent to place regulatory responsibility on the well owner or operator af ter the markers have been placed in a well.

A Noventer 6,1991, telefax from Beth Prange also raised some questions concerning reciprocity.

If Baker Sand's Texas or Louisiana licenses allow the company to use radioactive markers at temporary job sites, then the company is also allowed to use the markers under the 10 CFR 150.20 general license.

We do not consider this activity to be a transfer or disposal.

However, Baker Sand would continue to need 3n NRC license if it intends to possess and store the markers at its facilities in Alaska.

If you have any questions, please contact me at FTS 964-3418, Bruce Carrico at FTS 964-2634, or Susan Greene at FTS 964-2686.

- i s/ - Vf,'..: /. "- ,' John E. Glenn, Chief Medical, Academic, and Commercial i Use Safety Branch Division of Industrial and , Medical Nuclear Safety, NMSS j Enclosures: 1.

Memo dtd 7/21/88 i 2.

Proposed rule page H __ _ _. }}