Information Notice 1997-75, Enforcement Sanctions Issued As a Result of Deliberate Violations of NRC Requirements

Enforcement Sanctions Issued As a Result of Deliberate Violations of NRC Requirements

ML031050078
Person / Time
Site:	Beaver Valley, Millstone, Hatch, Monticello, Calvert Cliffs, Dresden, Davis Besse, Peach Bottom, Browns Ferry, Salem, Oconee, Mcguire, Nine Mile Point, Palisades, Palo Verde, Perry, Indian Point, Fermi, Kewaunee, Catawba, Harris, Wolf Creek, Saint Lucie, Point Beach, Oyster Creek, Watts Bar, Hope Creek, Grand Gulf, Cooper, Sequoyah, Byron, Pilgrim, Arkansas Nuclear, Three Mile Island, Braidwood, Susquehanna, Summer, Prairie Island, Columbia, Seabrook, Brunswick, Surry, Limerick, North Anna, Turkey Point, River Bend, Vermont Yankee, Crystal River, Haddam Neck, Ginna, Diablo Canyon, Callaway, Vogtle, Waterford, Duane Arnold, Farley, Robinson, Clinton, South Texas, San Onofre, Cook, Comanche Peak, Yankee Rowe, Maine Yankee, Quad Cities, Humboldt Bay, La Crosse, Big Rock Point, Rancho Seco, Zion, Midland, Bellefonte, Fort Calhoun, FitzPatrick, McGuire, LaSalle, Fort Saint Vrain, Shoreham, Satsop, Trojan, Atlantic Nuclear Power Plant
Issue date:	09/24/1997
Revision:	0
From:	Cool D A, Roe J W NRC/NMSS/IMNS, Office of Nuclear Reactor Regulation
To:
References
IN-97-075, NUDOCS 9709160314
Download: ML031050078 (8)

--IUNITED STATESNUCLEAR REGULATORY COMMISSIONOFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDSOFFICE OF NUCLEAR REACTOR REGULATIONWASHINGTON, D.C. 20555September 24, 1997NRC INFORMATION NOTICE 97-75: ENFORCEMENT SANCTIONS ISSUED AS ARESULT OF DELIBERATE VIOLATIONS OF NRCREQUIREMENTS

Addressees

All U.S. Nuclear Regulatory Commission licensees.

Purpose

The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notice to remindlicensees and their employees of the sanctions that could result from deliberately violatingregulatory requirements. It is expected that licensees will review this information notice,distribute it to management and staff involved with licensed activities, including responsibleradiation safety staff, and consider actions, as appropriate, to avoid similar problems. Thisinformation notice does not constitute any NRC requirements; therefore, no written response isrequired.

Description of Circumstances

Power Inspection, Inc., was a nondestructive testing firm, licensed by NRC to perform industrialradiography. The licensee acted as a vendor supplying services to nuclear power plants,including the performance of nondestructive testing services, such as eddy current testing ofsteam generators. This activity required the testing staff to be certified in each of thenondestructive testing techniques being used.During a 1993 inspection at the licensee's Wexford, Pennsylvania, facility, and a subsequentinvestigation by the NRC Office of Investigations, it was determined that: (1) false eddy currenttesting qualification certifications were deliberately generated by the licensee for employeeswho performed eddy current examinations at nuclear power plants; (2) false eddy currentqualification examination results were deliberately generated for employees; (3) false lettersregarding the trustworthiness and reliability of Power Inspection employees were provided toNRC reactor licensees when Power Inspection knew that its employees had tested positive forillegal drug use before working at nuclear power plants; and (4) sourceutilization logs were falsely created by licensee employees to satisfy questions regarding thelack of such utilization logs during a previous NRC inspection. These actions were condoned ordirected by the President of the company.PDA V4-C O 1111 1q-01111 11.11lo-If\Il~t!!lIll~l1lfN Wq- W4o8 @1

-/IN 97-75September 24. 1997 The licensee and its former President, who has since left the employment of the company, havea past history of engaging in deliberate misconduct. In 1988, the former President and thelicensee entered pleas of guilty to false statements and were charged by the U. S. Departmentof Justice with falsifying eddy current equipment calibration certifica- tions for work performed ata nuclear power plant. The former President was sentenced to a 3-year period of probation andfined $3000.DiscussionLicensees are responsible for ensuring the safe performance of licensed activities inaccordance with NRC regulations and the requirements of their licenses, and for providingcomplete and accurate information to NRC in all material respects. In cases that involvevendor activities regarding nuclear power plants, full compliance with certification requirementsfor nondestructive testing staff is critical because nuclear power plants rely on the results ofvendor activities for certification of safety-related systems.NRC expects licensee employees to be completely candid and cooperative with NRC personnelduring the licensing and inspection process. The regulatory process functions on the premisethat licensees will, at all times, provide complete and accurate information to NRC in a timelymanner. Violations of NRC requirements caused by deliberate acts or efforts to impede theregulatory process may subject wrongdoers to criminal sanctions by the U.S. Department ofJustice and civil sanctions by NRC. In the case identified as a result of the 1993 inspection, theU.S. Department of Justice declined criminal prosecution in 1996. Subsequently, NRC issuedimmediately effective orders to the former President and the former Vice President/RadiationSafety Officer prohibiting them from any involvement in NRC-licensed activities for periods of10 years and 5 years, respectively. Notices of Violation were issued to two other licenseeemployees.While the particular case described above involves deliberate misconduct by radiographylicensee employees, the principles involved apply to any NRC licensee or any employee of alicensee; and any contractor (including supplier or consultant), subcontractor, or any employeeof a contractor or subcontractor, of any licensee.Related Generic CommunicationsThe following related communications and correspondence are noted:* NRC Information Notice 86-54, "Criminal Prosecution of a Former Radiation SafetyOfficer Who Willfully Directed an Unqualified Individual to Perform Radiography," datedJune 27, 1986.* NRC Information Notice 92-22, "Criminal Prosecution and Conviction of WrongdoingCommitted by a Commercial-grade Valve Supplier," dated March 24, 199 IN 97-75September 24, 1997

• NRC Information Notice 92-37, "Implementation of the Deliberate Misconduct Rule,"dated May 8, 1992.* NRC Information Notice 93-73, "Criminal Prosecution of Nuclear Suppliers forWrongdoing," dated September 15, 1993.No written response is required by this information notice. If you have any questions about thismatter, please call the technical contacts listed below or the appropriate NRC regional office.Donald A. Cool, DirectorDivision of Industrial andMedical Nuclear SafetyOffice of Nuclear Material Safetyand Safeguards,'/ Jack W. Roe, Acting DirectorDivision of Reactor Program Management'7 Office of Nuclear Reactor RegulationTechnical contacts:Nader Mamish, NMSS301-415-6316E-mail: nlm@nrc.govJohn McGrath, RI(610) 337-5069E-mail: jrm@nrc.gov

Attachments:

1. List of Recently Issued NMSS Information Notices2. List of Recently Issued NRC Information Notices4fHf/ W4 v Ir-Attachment 1IN 97-75September 24, 1997Page 1 of ILIST OF RECENTLY ISSUEDNMSS INFORMATION NOTICESInformation Date ofNotice No. Subject Issuance Issued to97-7297-65Potential for Failureof the Omega SeriesSprinkler HeadsFailures of High-Dose-Rate Remote AfterloadingDevice Source Guide Tubes,Catheters, and ApplicatorsPotential ProblemsAssociated with Lossof Electrical Powerin Certain TeletherapyUnits09/22/9708/15/9708/13/97All holders of OLs or CPsfor nuclear power reactorsand fuel cycle facilitiesAll high-dose-rate remoteafterloader licenseesAll U.S. Nuclear RegulatoryCommission medical tele-therapy licensees97-6497-6197-5897-5797-56U.S. Department ofHealth and HumanServices Letter, toMedicaland manufacturers/distri-facturers, on theYear 2000 ProblemMechanical Integrity ofIn-Situ Leach InjectionWells and PipingLeak Testing of PackagingUsed in the Transport ofRadioactive MaterialPossession Limits forSpecial Nuclear Materialat the Envirocare ofUtah Low-Level RadioactiveWaste Disposal FacilityCalculation of SurfaceActivity for ContaminatedEquipment and Materials08/06/97Device Manu-07/31/9707/30/9707/28/9707/23/97All U.S. Nuclear RegulatoryCommission medicallicensees, veterinarians,butors of medical devicesHolders of and Applicantsfor Licenses for In-SituLeach FacilitiesSuppliers and users ofpackaging for the trans-portation of radioactivematerial required to per-form packaging leak testsAll licensees authorizedto possess special nuclearmaterialAll Uranium RecoveryLicensees97-55

.!P-Attachment 2IN 97-75September 24, 1997 LIST OF RECENTLY ISSUEDNRC INFORMATION NOTICESInformation Date ofNotice No. Subject Issuance Issued to97-7497-73Inadequate Oversightof Contractors DuringSealant InjectionActivitiesFire Hazard in the Useof a Leak SealantPotential for Failureof the Omega SeriesSprinkler HeadsInappropriate Use of10 CFR 50.59 RegardingReduced Seismic Criteriafor Temporary Conditions09/24/9709/23/9709/22/9709/22/97All holders of OLs fornuclear power reactorsexcept those who havepermanently'ceasedoperations and havecertified that fuelhas been permanentlyremoved from thereactor vesselAll holders of OLs fornuclear power reactorsexcept those who havepermanently ceasedoperations and havecertified that fuelhas been permanentlyremoved from thereactor vesselAll holders of OLs orCPs for nuclear powerreactors and fuelcycle facilitiesAll holders of OLs fornuclear power reactorsexcept those who havepermanently ceasedoperations and havecertified that fuelhas been permanentlyremoved from thereactor vessel97-7297-71OL = Operating LicenseCP = Construction Permit IN 97-75September 24, 1997

• NRC Information Notice 92-37, "Implementation of the Deliberate Misconduct Rule,"dated May 8, 1992.* NRC Information Notice 93-73, "Criminal Prosecution of Nuclear Suppliers forWrongdoing," dated September 15, 1993.No written response is required by this information notice. If you have any questions about thismatter, please call the technical contacts listed below or the appropriate NRC regional office.Original Rigned byDonald A. Cool, DirectorDivision of Industrial andMedical Nuclear SafetyOffice of Nuclear Material Safetyand SafeguardsOriginal Signed byJack W. Roe, Acting DirectorDivision of Reactor Program ManagementOffice of Nuclear Reactor RegulationTechnical contacts:Nader Mamish, NMSS301-415-6316E-mail: nlm@nrc.govJohn McGrath, RI(610) 337-5069E-mail: jrmrnrc.gov

Attachments:

1. List of Recently Issued2. List of Recently IssuedNMSS Information NoticesNRC Information NoticesDOCUMENT NAME: 97-75.INOFC IMOB* NMSS* I IMAB*NAME NMamisMIl EKraus JPicone LCamperDATE 8/18/97 8/18/97 8/29/97 9/2/97_OFC NRR* ll OE l L IMNS lNAME RDennig JLieberman e DCoolDATE 8/18/97 8/18J97 ~997 9___/___OFFICIAL RECORD COPY INYY-##Month ##, Year NRC Information Notice 93-73, "Criminal Prosecution of Nuclear Suppliers forWrongdoing," dated September 15, 1993.No written response is required by this information notice. If you have any questions about thismatter, please call the technical contacts listed below or the appropriate NRC regional of fice.Donald A. Cool, Director Jack W. Roe, Acting DirectorDivision of Industrial and Division of Reactor Program ManagementMedical Nuclear Safety Office of Nuclear Reactor RegulationOffice of Nuclear Material Safetyand SafeguardsTechnical contacts: Nader Mamish, NMSS301-415-6316E-mail: nlm@nrc.govJohn McGrath, RI610-337-5069E-mail: jrmenrc.gov

Attachments:

1. List of Recently Issued NMSS Information Notices2. List of Recenty Issued NRC Information NoticesDOCUMENT NAME: G:imns5885.nmOFC MOB* I NMSS* l IMOB* l IMAB* lNAME NMamish/I- EKraus JPiccone LCamperDATE 8/18/97 8/18/97 8129197 912197_z NRRIl OE* l NRR* l i ,I1NAME RDennig JLieberman JRoe J to[ DATE 8/18/97 8/18/97 9//7 q 116 /97OFFICIAL RECORD COPY I--INYWY#Month ##, Year No written response is required by this information notice. If you have any questions about thismatter, please call the technical contact listed below or the appropriate NRC regional office.Donald A. Cool, DirectorDivision of Industrial andMedical Nuclear SafetyOffice of Nuclear Material Safetyand SafeguardsJack W. Roe, Acting DirectorDivision of Reactor Program ManagementOffice of Nuclear Reactor RegulationTechnical Contacts:Nader Mamish, NMSS(301) 415-6316E-Mail: nlm@nrc.govJohn McGrath, NRC Region I(610) 337-5069E-Mail: jrm@nrc.gov

Attachments:

1. List of Recently Issued NMSS Information Notices2. List of Recenty Issued NRC Information NoticesDOCUMENT NAME: G:imns5885.nm XOFC l OB Il NIVSS ]-,IMOB/-lI 5 sNAME lamish/il EKraus J mperDATE 8,WI97 8/18/97 fx Aq/97 t 1/97OFC NRR OE IMNSNAME l RDennig JLieberman l oesi DCoolDATE l 8/18/97 8/18/97 I\ V/'97 I /97OFFICIAL RECORD COPY