ML20011F438

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Ack Receipt of 900206 Response to Violations Noted in Insps 30-05900/89-01,30-05901/89-01,30-05902/89-01 & 15000035/89-01.Understands That Licensee Record Reviews & Physical Searches Will Continue in Effort to Locate Sources
ML20011F438
Person / Time
Site: 03005901, 03005900, 03005902
Issue date: 02/23/1990
From: Beach A
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
To: Baker A
HALLIBURTON CO.
Shared Package
ML20011F439 List:
References
NUDOCS 9003060034
Download: ML20011F438 (1)


See also: IR 015000035/1989001

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.In Reply Refer To:

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Licenses:

35-00502-02

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E35-00502-03

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35-00502-04G'

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General: License.10 CFR 31.5

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Dockets:---30-05900/89-01-

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L30-05901/89-01

E30-05902/89-01

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150-00035/89-011

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.'Halliburton Company

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Halliburton-Services

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' ATTN: iA' A. Baker

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-Presidents

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P.O.' Drawer ~1431

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- Duncan, Oklahoma 73536;

-

Gentlemen:

.This refers to your letter dated February 6,1990, in response to our letter

,

and attached Notices of-Violation (NOVs) dated December 11, 1989. We have

,

reviewed your, reply and find-it responsive to our concerns.

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-With regard to.the~ violation listed in Appendix C of the NOV, daaling.with the

1

reporting;of lost: sources, we-understand-that your records reviews and physical

searches will continue in an' effort to locate the remaining sources.

-

'We w111' review your corrective actions during future inspections to determine-

..whether-full. compliance has been achieved and will be maintained.

-

.

05h!b#$1beci By:-

A.-B. BEACH-

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A.. Bill Beach, Director

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Division of Radiation Safety

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Oklahoma. Radiation Control Program Director

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FEB- 91990 -

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HALUBURTON SERVICES.

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~ GOVERNMENT REGULATIONS DEPARTMENT

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Serior Environmental Engineers

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R.L. BECHTEL .

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J.W. PRESGRoVE

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Industrial Hygienists

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' FAX Number (405) 2513917

J.R. SANDERS, JR.

J. F. BECKNER, JR.

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Wteer's Direct Dal Number

-(405)251-3749

February 6,

1990

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Bill. Beach, Director

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-Division of Radiation Safety & Safeguards

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U.S. Nuclear Regulatory Commission

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= Region IV

611 Ryan Plaza Drive ~

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Suite 1000

Arlington, Texas

67011

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RE:

Corrective Action Response Letter to Notice of Violations

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' Letter Dated-- 12-11-89

.

30-05900/89-01, 30-05901/89-01, 30-05902/89-01,

Dockets:

150-00035/89-01

Dear Mr. Beach:

'

This. response will follow the same format at your " Notice of.

,

' Violations" letter dated 12-11-89.

Response To " Notice of Violations"

License:

35-005-2-02

,

Docket:

30-05900/11T-01

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Response To Violation #1:

,

The-Vann System location in Oklahoma City was overlooked

during Halliburton Services field location audits as stated

in.your compliance letter.

Mr. Dan Kelly in now auditing all

-Vann' System locations.

Mr. Kelly conducted'an audit of the

Vann System location in Oklahoma City, Oklahoma on 12-11-89.

'

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'A copy of Mr. Kelly's audit report is enclosed for the

Commission'r review.

,

Response To Violation #2:

This violation was valid in that the Vann System location in

Oklahoma did not have the required records or an appropriate

survey-meter as required.

This location was sent the needed

records on 10-12-89 and 10-16-89.

This office also furnished

this location recommendations for a hand held survey

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instrument. : ' Mr'. - Dan Kelly 's audit. of . this facility- should

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point out any deficiencies in'the future which can be cor-

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rected.

.The above corrective measures apply to.NRC License 35-005-2-02,

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Docket- 30-05900/89-01.

1

Response'to " Notice of Violations"

'

,.

'

' License:

35-00502-03 '

Docket:

30-05901/89-01

Response To Violation:

The discrepancies described were apparently due to_the

Halliburton Services Densometer responsible person not being

knowledgeable and current on his district's Radioactive

Densometer' inventory.

The comments given to Messrs,-Vasquez,

and Rajendsan by Mr.-Rahimi were not based on information-

!

that should have been available to Mr. Rahimi.

The following

i

comments are made:

i

1.

Sealed source S-277 did show up on copies of Oklahoma

City District inventories dated; l-5-88, 4-7-88, and

<

.6-17-88,-see copies attached.

2.

Mr. Kelly's audits dated 12-24-87 and 12-15-88 did-

-indicate source S-277 to be in the Oklahoma City Dis-

trict.

This Source /Densometer was leak tested in the

,

Oklahoma City District.on 6-7-81 and'2-10-84.

3.

-Mr. Rahimi was apparently not aware that source S750 was

being stored and used.in the Oklahoma Division instru-

ment shop.at the. time of the NRC inspection.

Mr.

!

Kelly's audit of 12-15-88 indicated that this source was

,

in the Oklahoma City inventory.and that all-records were

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available.

Mr. Kelly's audit of 12-11-89 also indicated

that all needed records were available for source SN

,

S750.

Please see copies of inventories and' Dan Kelly's

audits.

4.-

Source SN X350 was1 received at the Duncan field camp

5-17-82.

The source was leak tested at the Duncan field

camp on. 12-10-86. ~ Copies of the Duncan field camp

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inventories' dated 1-5-88 and 6-17-88 indicated source SN

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X350 was in the Duncan field camp inventory.

A receipt

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.

record (Important Notice) dated 5-17-82 was in our

scurce/Densometer file confirming the source was re-

'

elved at the Duncan field camp.

Mr. Dan Kelly's audits

dated 1-2-88 and 9-22-88 also indicated that source

X-350 was in the Duncan field camp.

Shortly after the

NRC inspection, source X-350 in Densometer SN 3IV645 was

,

transferred to Ft. Smith, Arkansas.

However, the

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-Material Transfer '(MT) was dated 10-2-89.

Apparently,

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the MT was processed 10-2-90, and this source X-350 was

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.taken off Duncan's inventory, but the source was not

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transferred to Pt. Smith until November 1989.

Also,

'

someone in Government Regulations Department must have

deleted source SN X-350 from Duncan's inventory.

How or

why source'X-350 was added to the " Unaccounted Dens-

ometer" list I do not have a clue.

The discussion in items 1-4 above was offered as additional

,

information and will hopefully help clarify this situation.

The

items of violation were valid in that the responsible Halliburton

personnel in Oklahoma City field camp was apparently not aware of

his Densometer inventory status at'the time of the NRC inspection.

J

Secondly, the completed audit reports submittad by Mr. Kelly were

- apparently not reviewed by anyone including the Radiation Safety

- Officer.

Consequently, the deficiencies noted by Mr. Dan Kelly

were not corrected on a consistent basis.

The' Oklahoma City Division field' locations were not consistently

reviewing the computer generated quarterly inventory and actually

checking their physical inventories against the computer

inventory.

The following corrective measures have been implemented since~the

.

NRC inspection:

1.

Dan Kelly's field location audits are addressed and sent

directly to the Radiation Safety Officer (RSO) for his

review.

2.

The RSO will review each audit in its entirety and

2

initiate corrective measures to remedy the indicated

deficiencies.

i

3.

The RSO will submit to the Manager of Government Regu-

lations a form letter outlining the specific corrective

.

measures taken.

A copy of this form is' enclosed.

4.

Mr. Dan Kelly will also strive to resolve any Densometer

inventory discrepancies found during his audits as soon

as possible after they are discovered.

Response To " Notice of Violation:

'

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License:

10CFR31.5

Response To Violation:

The unaccounted sources listed in your " Notice of Violation,

Appendix C" were not reported to the NRC as lost sources

since Halliburton Services Management felt the sources were

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not lost, but simply misplaced.-

The sources are presently

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unaccounted for, but were still in the possession of Halli-

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burton Services at some unknown location.

Since the NRC inspection of September 12, 1989, and October

10-32, 1989, the following unaccounted sources have been

located

Source Z-103:

This source in Densometer SN W35-0018 was-

sold.to the University of Wyoming in June 1986.

Appar-

ently no report'to the NRC was made under 10 CFR 32.52

as required.

"

Source S-662:

This source is shown to be currently-in

Dubai, United Arab Emirates.

This will be confirmed by

correspondence.

Source X-030:

This source is in Densometer SN 3IV111

and mounted on skid unit #6384.

The location of the

skid unit is being searched at the present time,

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Source X-007:

This source was originally in Densometer

f

SN 3IV136.

Then source SN X-74 replaced source X-007 in

'

the same Densometer 3IV136.

Source SN X-007 is now in

our stock source inventory.

Source CS2-724:

This source /Densometer is in Vernal,

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Utah and has been since 1983.

Mr. Kelly's audit dated

i

6-15-88 and a current computer inventory printout

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confirms this.

Why this source was reported as un-

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accounted for is a mystery.

Copies of the audit and

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computer inventory are enclosed.

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Source CS2-751:

The location of this source is not

presently known.

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Source X-211:

This source X-211 was discovered in

Duncan on a instrument kit No. 7846 in our instrument

!

kit inventory.

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Source Y-61:

This source was returned from the Davis,

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oklahoma facility and the source is now at the Rayfrac

Building here in Duncan.

Source A-424:

This source location is still unknown.

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Source X-350:

This source is currently in Ft. Smith,

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Arkansas after being transferred recently from the

Duncan field camp.

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Source X-375:

Our records indicate this source was sent

to Gulf Nuclear to be used as a reference source.

We

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will follow-up on this notation to confirm the transfer.

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The location of sources A-424, CS2-751,.and X-375 have not

currently been confirmed.

A letter dated 2-5-90 was sent to'nine

.(9) Halliburton Services International Divisions requesting their

assistance in locating the still unaccounted for Densometers.

A

. copy'.of-this letter is enclosed.

-

,

Halliburton Services will continue to search for the two un-

accounted for sources-until all resources have been exhausted.

The above corrective' measures should address all the violations

listed in your " Notice of Violations" letter dated 12-11-89.

Please contact this office for additional information or further

clarification.

Sincerely,

Richard A. Leonardi

V

Radiation Safety Officer

RAL:mcp

enc: (15)

cc: -Al Baker

Vann-System Locations

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-COMNET MESSAGE

80052151

FOR GVRZO11

GOV'T RLGULATIONS

PAGE 01

(AUTHOR"O COPY)

DF 03

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3[RADI0 ACTIVE. MATERIAL WARNING WASHER PRESENT AND LEDGIDLE (PART-5458.31596)

1

ASSAY 2 PLATE PRESENT AND LEDGIBLE-(PART- 1450.31133)

TWO DOT _RADI0 ACTIVE YELLOW ~II LADELS PRESENT AND LEDGIDLE-(PART #70.70790)

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RADI0 ACTIVE MATERIAL, SPECIAL FORM,

N.O.S.-

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UN2974-HALLIDURTON SERVICES-DUNCAN, OKLAHOMA (SHOULD DE ON LADEL)

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..'ALL RADI0 ACTIVE MATERIALS NOT VEHICLE MOUNTED MUST BE STORED IN A LOCKED AREA

LOCATED AWAY FROM NORMALLY OCCUPIED WORK AREAS.

ALL STORAGE FACILITIES MUST

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CAUTION RADI0 ACTIVE MATERIALS AND CAUTION RADIATION AREA

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SIGNS. PART 470.79222 AND 70.79223 AND MUST BE MARKED:

RESTRICTED AREA

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AUTHORIZED ENTRANCE ONLY (LOCAL PURCHASE).

THE RADIATION LEVELS AT THE

FENCE / OUTER WALLS OF THE STORAGE AREA MUST BE <0.6 MR/HR.

h YOU HAVE ANY QUESTIONS OR NEED ASSISTANCE CONTACT RICHARD LEONARDI

AT KILGORE

EXAS.OR CONTACT THE GOVERNMENT REGULATIONS DEPARTMENT IN DUNCAN.

GURCE

DENSOMETER

ACTIVITY- MANUFACTURER

LAST

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DATE

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.._----

a(L A' O'MA CITY , OKLAHOMA

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N.O.S.-

IUN2974-HALLIDURTON-SERVICES-0UNCAN, OKLAHOMA (SHOULD DE ON LADEL)

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ALLERADI0 ACTIVE MATERIALS NOT-VEHICLE MOUNTED MUST BE STORED IN A LOCKED AREA

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LOCATED-AUAY FROM NORMALLY. OCCUPIED WORK AREAS.

ALL STORAGE FACILITIES NUST

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CAUTION RADI0 ACTIVE MATERIALS AND CAUTION RADIATION AREA

SIGNS . PART 970.79222 AND 70.79/2'3 AND MUST BE MARKED

RESTRICTED-AREA

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THE RADIATION' LEVELS AT THE

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LYOU HAVE'ANY QUESTIONS OR NEED ASSIS1ANCE CONTACT RICHARD'LEONARDI AT KILGORE

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LAHOMA CITY, OKLAHOMA

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ilCOMNETtMESSAGE-

80052027~

~

.FORLGVRZO11: GOV 'T REGULATIONS

PAGE 00:

{fAUTHOR"SLCOPY)L

OF'03

tt

'

'

iT0 s l FEC2751' :-JOHN ~ 0SWALD.

MESSAGE WAS'SENT ON :05JAN80 13:45

b:

FROM: GVRZO11- GOV'T REGULATIONS

",

TITLEi: DENS 0 METERS.

"

.

,LSUBJECT I-, QUARTERLY ' INVENTORY , 6,MONTHEINSPECTION, AND LEAK TEST CERTIFICATE

-

,

4

.J V 'FOR VERIFICATION AND FILING

1 ACTION' REQUIRED:

NEEDED BY:

ePMESSAGE' ENTERED BY USER: GVRZO11'

AT LTERM

GOVREG07

- i

< MESSAGE? PRINTED:BY USER fGVRZO11

GOV 'T REGULATIONS

AT LTERMs

t

1 CURRENT USER ID

GVRZO11-

GOV'T REGULATIONS

T

-l

'

' ATTACHMENTS:-'

l

A

lCCI

,

h'DIVZ001

C '.

H. MCDUFF

GVRZ101

RICHARD LEONARD 1

p

,

" LISTED BELOW ARE<THE-SOURCES / DENS 0 METERS OUR RECORDS INDICATE ARE IN YOUR DEPT./

' DIVISION'.

ALSO LISTED IS'THE MANUFACTURER, ACTIVITY LEVEL, ISOTOPE (IF OTHER

FTHAN. CESIUM-137), AND WIPE TEST DATA.

lTHIS1 LIST SERVES -QUARTERLY INVENTORY AND 6 MONTH INSPECTION FOR STORAGE LOCA-

JTIONSi.

WE WILL-SEND-YOU AN UPDATED LIST AT LEAST EACH QUARTER.

YOU SHOULD

sPHYSICALLY VERIFY AND INSPECT DENS 0 METERS / SOURCES EACH TIME YOU RECEIVE' THIS

tLIST.

IF.THE LIST IS' CORRECT PRINT'AND' FILE IT,WITH YOUR RADI0 ACTIVE MATERIAL

LFILES..

IF THE. LIST'IS NOT CORRECT CONTACT THE GOVERNMENT REGULATIONS DEPART :

' MENT?IN'DUNCAN.

-;EACHELOCATION WILL DE RESPONSIBLE FOR ORDERING AND PERFORMING WIPE TESTS FOR

EACH OFETHEIR SEALED SOURCES / DENS 0 METERS AT'THREE YEAR INTERVALS'(UNLESS OTHER -

JWISE'NOTED ON THE' LIST).

THE PART NUMBER FOR WIPEETEST KITS IS 458.00080.

f0RDER WIPE $ TEST KITS AT LEAST 90-DAYS IN' ADVANCE'0FLTHE DUE DATE-: INDICATED ON.

iTHE LIST BELOW-

JTHIS: LIST 1WILL SERVE'AS YOUR CERTIFICATE OF LEAK TEST:

THIS IS TO CERTIFY THE

. LEAK TESTS 0N THE DELOW NAMED SOURCES WERE (0.005 MICR0 CURIES (<11.000 DPM)

(TRANSFERABLE' ACTIVITY,-BY DAVE SIMON, CRD AND/OR INSTRUMENT ASSEMBLY, DUNCAN..

.

-

$

M

.we,

' h ,-

a

,,

COMNET MESSAGE

80032027

FOR GVRZO11

GOV 'T REGULATIONS

PAGE 01

0F 03

(AUTHOR"S, COPY)

i

~ RADI0 ACTIVE MATERIAL WARNING WASHER PRESENT AND LEDGIDLE (PART 4400.31596)

.

' '. ASSAY PLATE PRESENT AND LEDGIDLE (PART 845S.31133)

TWO DDT RADIDACTIVE YELLOW II LABELS PRESENT A'!O LEDGIBLE (PART 470.70790)

.

2

00T 7A TYPE A LABEL PRESENT AND LEDGIBLE (PAR 1 4458.31624)

EACH DENS 0 METER MUST BE MARKED

RADIDACTIVE MATERIAL, SPECIAL FORM,

N.O.S.-

.

UN2974-HALLIDURTON SERVICES-DUNCAN, OKLAHOMA (SHOULD BE ON LABEL)

CLL RADIDACTIVE MATERIALS NOT VEHICLE MOUNTED MUST BE STORED IN A LOCKED AREA

3.

LOCATED AWAY FROM NORMALLY OCCUPIED WORK AREAS.

ALL STORAGE FACILITIES MUST

BE POSTED WITH:

CAUTION RADI0 ACTIVE MATERIALS AND CAUTION RADIATION AREA

. SIGNS

PART 970.79222 AND 70.79223 AND MUST BE MARKED:

RESTRICTED AREA

AUTHORIZED ENTRANCE ONLY (LOCAL PURCHASE).

THE RADIATION LEVELS AT THE

FENCE /0 UTER WALLS OF THE STORAGE AREA MUST BC <0.6 MR/HR.

F YOU HAVE ANY QUESTIONS OR NEED ASSISTANCE CONTACT RICHARD LEONARDI AT KILGORE

'"EXAS OR CONTACT THE GOVERNMENT REGULATIONS DEPARTMENT IN DUNCAN.

l

30URCE

DENS 0 METER

ACTIVITY

MANUFACTURER

LAST

NEXT

DATE OF

JUMDER

NUMUER

(MCI)

AND/OR

WIPE

WIPE

LEAK TEST

d

MODEL

DATE

DATE

COUNT

........

..... ....

........

............

........

........

.........

JUNCAN, OKLAHOMA

l

1029

3IV110

10.5

NSSI/GTGHP

2-19-87

2-19-90

3-2-87

1

134

PF0002

11

GNI/CS1000

12-10-86'

12-10-89

2-2-87

!

5676

73717

9.7

NSSI/GTGHP

10-15-87

10-15-90

10-16-87

!

3714

60375C

21

NSSI/GTGHP

12-10-86

12-10-89

2-2-87

X81

73945

10

NSSI/GTGHP

12-10-86

12-10-89

2-2-87

<242

3IV562

10.5

NSSI/GTGHP

12-10-86

12-10-89

2-2-87

!

(45

6099SC

19.3

NSSI/GTGHP

12-10-86

12-10-89

2-2-87

X303

31V596

10

NSSI/GTGHP

12-10-86

12-10-89

2-2-87

X350

31V645

10

NSSI/GTGHP

12-10-86

12-10-89

2-2-07

3703

SIN 001

21

NSSI/GTGHP

12-10-86

12-10-89 *2-2-87

2119

W320047

56.6

GAMMATRON/GTGHP

10-14-87

10-14-90

10-14-87

l

X183

3IV478

11.3

NSSI/GTGHP

1-15-87

1-15-90

3-2-87

)

l

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_

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-

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NN

TOMr. John oswald

Engineering

Duncan Oklahoma

_

DLPAk14tLN1

1(K AIlON

Richard A. Leonardi. Jr.

FROM

Sansocibdir

Government Regulations

Duncan, OK 73536-o100

DLPARI ALLMI

1(K AllON

A wipe test is needed on Source No. X350

in Densometer No. 3Iv645

l

,

This test must be made NOW to meet N.R.C. or Agreement Stste Regulations. DO NOT Cil ANGE

,

NUMBERS.

'

Using the cotton wipe material, wipe around Source Holder Flange and return to platic bag. Provide

the following information:

,

Mo'lty

Date

/2 /0 f 6

Source wiped by

ntv

Source Location Ms*

'J' M

ONII

-

,

Richard A. Leonardi Jr.

Return along with wipe to:

INEGXKWIK

Halliburton Services

Drawer 1431

Duncan, OK 73536 -0100

DGK:im

y

.

  • /D

smut u '

,,,,.s

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Upbn receipt of this. Unit, plcoca comploto fonn cnd' roturn os indicated.

i

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KEEP A COPY OF THIS AS A RECEIPT RECORD!!!I

.

.

'

IMPORTANT NOTICE

I'

WHEN A RADIOACTIVE DENSOMETER IS SOLD, LEASED, INSTALLED ON OUR

EQUIPMENT TRANSFERRED OR RETURNED BY LEASEE, THE PERSON HANDLING THE

TRANSACTION SHALL FILL OUT THIS FORM IN DUPLICATE. ONE COPY lS TO BE SENTTO THE

i

DIVISION ENGINEER AND THE OTHER COPY TO:

DAN G. KELLY

HALLIBURTON SERVICES

'

-

DRAWER 1431

~

DUNCAN.OK 735%

THIS DENSOMETER WAS (SOLD)(LEASED)(l$ MOUNTED ON HALLIBURTON EQUIPMENT)(15

!

TO BE USED WITH HALLIBURTON EQUIPMENT)(TRANSFERRED)(RETURNED BY 1EA$EE)

j

UNDERLINE ONE.

'

SOURCE SERIAL NO.

  • ' 4 T

DENSOMETER SERI AL NO.

5

'

,-

MOUNTED ON iI#!

I

'

'

'*6

.

UNIT NO.

'-

=.,_

TYPE IQUIPMLNT

'

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'

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" " ' ' '

LOCATION

TOWN

$1 ATE

ZIP

I

DENSOMETER RECEIVED BY AND SERIAL NUMBERS WERE CONFIRMED BY:

i

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,, j

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,,

.

NAME

DATE

.

IF OTHER THAN ABOVE DESCRIBE:

u, ,-

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.

Ron Bechtel

l

Government Regulations

l

l

Richard Leonardi, Jr.

Government Regulations

i

l

Corrective Measures Taken to Rectify Deficiencies

Documented in Dan Kelly's Radiation Safety Audits

l

l

The following corrective measures were taken to rectify

.

'

radiation safety program deficiencies found during a recent

radiation safety audit as described below.

OFSG COMPANY AUDITED:

,

AUDITED LOCATIONS:

DATE OF AUDIT

DATE OF AUDITOR

REPORT:

,

1

AUDIT LOCATION

CONTACT:

-

'M

CORRECTIVE MEASURES COMPLETED

NO CORRECTIVE HEASURES REQUIRED

'

Telephoned contact person regarding deficiencies

Sent the required Source /Densometer Records listed

on Attachment

.

<

Ordered and will send completed assay plates for

the Sources /Densometers listed on Attachment

k

Sent

Leak Test Kits as requested.

,

Sent copy of Densometer computer program user

instructi,ons

Sent copy of recent computer Densometer inventory

printout

'

.

.

.

9

1

o

.

'

.

=,

.

. ..

Sent copy of

Radioactive Material License

Sent copy of

Radiation Safety Procedures

Sent copy of " Notice to Employees"

'

Sent copy of " Posting Card"

Sent copies of " Notice of Violation" and/or

Corrective Action Letters

Sent storage area survey procedures and standard

survey report forms

Sent survey meter information and purchase

-

'

information

Sent required radiation labels and/or signs as

listed on Attachment

SPECIAL INSTRUCTIONS:

See Atthchment

Richard Leonardi

Radiation Safety Officer

RLamep

CC:

enclosures: 1

.

CORRECTIVE.RL

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ATTACHMENT

Source

Densometer

Secled Source

Radiation

Previous

Receipt

Number

Serial 0

Certificate

Profile

Leak Test

Record

!

,

1

k

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SPECIAL INSTRUCTIONS

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- Licted below are the sources /densometers our records indicates are in your dept / !

.

division.

Also listed is the manufacturer, activity level, isotope (if other

than Cesium-137), and wipe test data.

-

This list serves: Quarterly Inventory and 6 Month Inspection for storage loca-

tions.

You will need to pull an updated list at least once each quarter.

You

'

should physically verify and inspect densometers/ sources each time you receive

this list.

Also, the "Next Wipe Date" column should be checked to determine

,

if any of the densometers will need to be wiped to keep their "Last Wipe Date"

within the 3 year requirement of NRC.

If the list is correct, file it with

your radioactive material files.

If the list is not correct, contact the

Government Regulations Department.

Each location will be responsible for ordering and performing wipe tests for

Gach of their sealed sources /densometers at three year intervals (unless other-

wise noted on the list).

The part number for wipe test kits is 458.00080.

Order wipe test kits at least 90 days in advance of the due date indicated on

th3 list below.

'

This list will serve as your certificate of leak test:

This is to certify the

look tests on the below named sources were <0.005 microcuries (<11,000 DPM)

transferable activity, by Dave Simon, CRD and/or Instrument Assembly, Duncan.

l

During the densometer inspection referenced above the following items must be

varified:

.

'

l. Radioactive material warning washer present and legible (part # 458.3 1596)

2. Assay plate present and ledgible (part # 458.31133)

3.Two DOT Radioactive Yellow II Labels present and ledgible (part # 70.70790)

4. DOT 7A Type A Label present and ledgible (part # 458.31624)

5.Ench densometer must be marked:

Radioactive Material, Special Form,

N.O.S.-

l

UN2974-Halliburton Services-Duncan, Oklahoma (should be on label)

!

6.All radioactive materials not vehicle mounted must be stored in a locked area

l

located away from normally occupied work area.

All storage facilities must

bs posted withs CAUTION RADIOACTIVE MATERIALS and CAUTION RADIATION AREA signs

,

part # 70.79222 and 70.79223 and must be marked: RESTRICTED AREA AUTHORIZED

i

ENTRANCE ONLY (Local Purchase).

The radiation levels at the fence / outer wall

of the storage area must be <0.6 MR/HR.

If you have any questions or need assistance contact Richard Leonardi at Kilgore

th3 Government Regulations Department in Duncan.

SOURCE

DENSOMETER

ACTIVITY

MANUF/MODEL

LAST

NEXT

LEAKTEST

NUMBER

NUMBER

(MCI)

NUMBER

WIPEDATE

WIPEDATE

DATE

ACCT / LOC

55685

VERNAL

X145

731063

8.873

NSSI/GTGHP

11-17-89

11-17-92

01-08-87

X497

W28-0119

10.120

GAMMATRON/GTGHP

01-11-90

01-11-93

01-25-90

Y44

V660014

15.888

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

CS2-479

31V702

8.352

GNI/CS2

01-20-90

01-20-93

X089

31V203

8.758

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

CS2-724

410043

47.045

GNI/CS2

02-24-87

02-24-90

02-25-87

,

X086

73942

8.035

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

X054

73922

8.404

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

843

PFD4

6.316

GNI/CS1000

01-11-90

01-11-93

01-25-90

S580

73491

7.761

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

CS2-724

W410043

47.045

GULF NUCLEAR

01-11-90

01-11-93

01-25-90

1576GS

8002

100.125

AMERSHAM /

01-22-88

01-22-91

02-08-88

S441

73474

7.474

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

S708

098SC

15.931

NSSI/GTGHP

06-02-88

06-02-91

07-07-88

Y21

6076SC

17.596

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

CS2-675

731037

8.482

GNI/CS2

01-20-90

01-20-93

XO75

3IV129

8.276

NSSI/GTGHP

01-23-90

01-23-93

879

V350019

6.500

GNI/CS1000

01-11-90

01-11-93

01-25-90

.

.- . - - -

-

-

-

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.

.

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Y42,

61N096SC

16.052

NSSI/GTGHP

01-11-90

01-11-93

X124

731053

8.141

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

g . 2006

C3105

42.410

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

,

'

2005

3DV849

42.725

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

S145

731030

7.235

NSSI/GTGHP

01-11-90

01-11-93

01-25-90

0008

731044

8.924- 3M/4P6D

01-23-90

01-23-93

CS2-756

3IV793

8.692

GNI/CS2

01-20-90

01-20-93

Y99

V66-0042

20.996

GAMMATRON/GTGHP

01-11-90

01-11-93

01-25-90

'2100

W320014

53.309

GAMMATRON/GTGHP

01-11-90

01-11-93

01-25-90

.

'

X661

V36-0181

9.959

GAMMATRON/GTGHP

01-11-90

01-11-93

01-25-90

2116

W410042

55.260

AMMATRON/GTGHP

01-11-90

01-11-93

01-25-90

1

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I

In Reply Refer To:

.

Licenses: 35-00502-02

35-00502-03

l

35-00502-04G

General License 10 CFR 31.5

Dockets: 30-05900/89-01

l

30-05902/89-01

i

30-05902/89-01

150-00035/89-01

Halliburton Company

'l

Halliburton Services

]

ATTN:

A. A. Baker, President

'

.P.O. Drawer 1431

Duncan, Oklahoma 73536

Gentlemen:-

]

,

This refers to the routine, unannounced radiation safety inspection conducted

by Messrs. G. M.-Vasquez and S. Rajendran of this office on September 12 and

October 10-12, 1989, of the activities authorized by NRC Byproduct Material

Licenses 35-00502-02, 35-00502-03, 35-00502-04G, and the General License

pursuant to 10 CFR 31.5, and to the discussion of our findings held by the

inspectors with members of your staff at the conc)usion of the inspection. The

enclosed combined NRC Inspection Reports 30-05900V89-01,30-05901/89-01,

'

30-05902/89-01, and 150-00035/89-01 document this inspection.

The inspection was an examination of the setivities conducted under the license

as they relate to. radiation safety and to compliance with the Commission's

rules and regulations and the conditions of the license.

The inspection

consisted of selective examinations of procedures and representative records,

interviews of personnel, independent measurements, and observations by the

inspectors.

During this inspection, certain of your activities were found not to be

conducted in full compliance with NRC requirements for License

Nos. 35-00502-02, 35-00502-03 and the General License authorized by

i

10 CFR 31.5.

Consequently, you are required to respond to this matter in

writing, in accordance with the provisions of Section 2.201 of the NRC's " Rules

,

of Practice," Part 2, Title 10, Code of F deral Regulations.

Your response

9

should be based on the specifics contained in the Notices of Violation enclosed

with this letter. No violations were identified for License No. 35-00502-04G.

-

l

The inspectors also reviewed the actions you had taken with respect to the

g-

violations observed during our previous inspection of License Nos. 35-00502-03

and 35-00502-04G conducted on August 4-5, 1988. They verified that the

corrective actions for these violations had been implemented as stated in your

reply dated November 16, 1988.

RIV:NMIW+E

NMIS M

C:NMISWL

1 SS

I

GMVasquez

SRajendran

CLCain

BBaach

13 / 6 /8 9

lb/6 /89

(t./6 /89

Q/g/89

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Halliburton Company-

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' ele are concernsd about the implementation of your program in the area of

j

management control that permitted these violations to occur. Consequently, in

your reply to this letter, you should describe those specific actions planned

or taken to improve the effectiveness of the management control of your

licensed operations, with particular emphasis on measures currently being taken

!

to prevent further violations.

In 1987, an order modifying your. license

required you to implement an internal audit program. We are concerned about

the quality of your audits in that deficiencies were noted by NRC in three out

of four of the field stations inspected. These results indicate inadequate

audits were performed.

The response directed by this letter and the accompanying Notice is not subject-

to the clearance procedures of the Office of Management and Budget as required

by the Paperwork Reduction Act of 1980, PL 96-511.

Should you have any questions concerning this letter, we will be pleased to

!

discuss them with you.

UlflMINYgned By:

A.B. BEACH

A. Bill Brach, Director

Division af Radiation Safety

'

and Safeguards

'

Enclosures:

1.

Appendix A - Notice of Violation for License No. 35-00502-02

2.

Appendix B - Notice of Violation for License No. 35-00502-03

3.

Appendix C - Notice of Violation for the General License Pursuant to

10 CFR 31.5

4.

Appendix D - Combined NRC Inspection Reports

30-05900/89-01

30-05901/89-01

30-05902/89-01

150-00035/89-01

5.

Appendix E - Litt of Unaccounted for Densometers

cc:

Oklahoma Radiation Control Drogram Director

,

bec:

DMB - Original (IE-07)

RDMartin

)

ABBeach

LAYandell

LShea, RM/ALF (AR-2015)

"CLCain

  • RJEverett
  • GMVasquez
  • SRajendran

ff S~ '

' MIS System

RIV Files (2)

  • RSTS Operator
  • REHall, URF0
  • W/766

.

.

-..

- -

-

,

..

-_

- . .

-

t

,

,

>

<

.

.,

i

'

APPENDIX A

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NOTIC,E,0F VIOLATION

Halliburton Company

Dockets:

30-05900/89-01

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Duncan, Oklahoma '

Licenses: 35-00502-02

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During an NRC inspection conducted on September 12 and October 10-12, 1989,

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violations of NRC requirements were identified.

In accordance with the

" General Statement of Policy and Procedure for NRC Enforcement Actions," 10 CFR Part 2, Appendix C (1989) (Enforcement policy), the violations are listed

below:

1.

License Condition 13 requires, in part, that the licensee conduct its

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program in accordance with the statements, representations, and procedures

contained in the licensee's letter dated December 21, 1988. The

Radioactive Safety and Material Audit Program description attached to the

letter states, in part, that comprehensive audits of the hahdling, use,

storage, and disposition of licensed tracer materials shall be conducted

at intervals not to exceed 3 months.

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Contrary to the above, no such audits were performed at the Vann Systems

office in Oklahoma City during the period dynuary I through October 12,

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1989, in regard to possession of Co-60 beads licensed for tracer

activities.

This is a Severity Level IV violation.

(Supplement VI)

2.

10 CFR 19.11 requires, in part, that the licensee post specified

documents.

Contrary to the above, as of October 12, 1989, none of the specified

documents were posted at the Vann Systems office in Oklahoma City,

Oklahoma, where approximately 14 microcuries of Co-60 beads were located

at the time of the inspection.

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This is a Severity Level V violation.

(Supplement VI)

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Pursuant to the provisions of 10 CFR 2.201, Halliburton Company is hereby

requirm to submit to this office, within 30 days of the date of the letter

transmitting this Notice, a written statement or explanation in reply,

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including for each violation: (1) the reason for the violation if admitted,

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(2) the corrective steps which have been taken and the results achieved,

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(3) the corrective steps which will be taken to avoid further violations, and

(4) the date when full compliance will be achieved. Where good cause is shown,

consideration will be given to extending the response time.

Dated at Arlington, Texas,

this

lith

day of December

1989

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APPENDIX B

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NOTICE OF VIOLATION

Halliburton Company

Docket:

30-05902/89-01

Duncan, Oklahoma

License:

35-00502-03

During an NRC. inspection conducted on September 12 and October 10-12, 1989, a

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violation of NRC requirements was identified.

In accordance with the " General

Statement of Policy and Procedure for NRC Enforcement Actions," 10 CFR Part 2,

Appendix C (1989) (Enforcement Policy), the violation is listed below:

License Condition 19 requires, in part, that the licensee conduct its

program in accordance with the statements, representations, and procedures

contained in the letter dated December 21, 1988. The Radioactive Safety

and Material Audit Program description attached to the letter states, in

part, that comprehensive audits of the handling, use, storage, and

disposition of generally licensed sealed sources shall be conducted at

intervals not to exceed 12 months.

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Contrary to the above, inadequate audits were performed at the Oklahoma

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City and Duncan, Oklahoma, sites in that discrepancies in source

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inventories were not identified.

Specifica1$y, at the Oklahoma City site,

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sealed source Serial No $277, a 9.5 mci Cs '137 source, was not on the

facility's inventory though it had been received at the facility in

February 1984. Additionally, sealed source Serial No. 5750 was on the

facility's inventory, but was not at the facility and no records existed

that the sealed source was ever received at the facility. Both of these

discrepancies were identified by the inspectors despite licensee audits

conducted December 30, 1987, and December 15, 1988.

At the Duncan site, sealed source Serial No.-X350 was discovered during

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the inspection and was found to have been at the field site for several

years. However, the source was not on the site's inventory and was, in

fact, on the licensee's list of unaccounted for sources. Despite licensee

audits conducted on January 2 and September 22, 1988, these discrepancies

were identified by NRC during the inspection.

This is a Severity Level IV violation.

(Supplement VI)

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Pursuant to the provisions of 10 CFR 2.201, Halliburton Company is hereby

required to submit to this office, within 30 days of the date of the letter

transmitting this Notice, a written statement or explanation in reply, ,

including for each violation:

(1) the reason for the violation if admitted,

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(2) the corrective steps which have been taken and the results achieved,

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-(3) the corrective steps which will be taken to avoid further violations, and

(4) the- date when full compliance will be achieved. Where good cause is shown,

consideration will be given to extending the response time.

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Dated at Arlington, Texas,

this

11th

day of December

1989

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APPENDIX C

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NOTICE OF VIOLATION

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Halliburton Company

Docket:

150-00035/89-01

Duncan, Oklahoma

General License:

10 CFR 31.5

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During an NRC inspection conducted on September 12 and October 10-12, 1989, a

violation of NRC requirements was identified.

In accordance with the " General

Statement of Policy and Procedure for NRC Enforcement Actions," 10 CFR Part 2,

Appendix C (1989) (Enforcement Policy), the violation is listed below:

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10 CFR 31.5(c) states, in part, that any person who acquires, receives,

possesses, uses or transfers byproduct material in a device pursuant to

10 CFR 31.5(a) shall comply with the provisions of 10 CFR 20.402 for

reporting theft or loss of material.

10 CFR 20.402(a) requires, in part,

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that the licensee notify the NRC immediately after it determines that a

loss or theft of licensed material has occurred.

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Contrary to the above, as of November 1988, the licensee has been unable

to determine the location of the following Cs-137 sealed sources

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identified by serial number and activity:

S-662 (10 mC1); X-030 (10 mC1);

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CS2-751 (10 mC1); X-211 (10 mC1); Y-61 (20 r$1); A-424 (50 mC1); and

X-375 (10 mC1). Since that date, the literske has neither located the

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sources nor reported them to the NRC as missing.

The sources were last

known to be in Okithoma,- a state where the NRC maintains jurisdiction.

This is a Severity Level IV violation.

(Supplement IV)

Pursuant to_ the provisions of 10 CFR 2.201, Halliburton Company is hereby

required to submit to this office, within 30 days of the date of the letter

,

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transmitting this Notice, a written statement or explanation in reply,

including for each violation:

(1) the reason for the violation if admitted.

(2) the corrective steps which have been taken and the results achieved,

(3) the corrective steps which will be taken to avoid further violations, and

,

(4) the date when full compliance will be achieved. Where good cause is shown,

consideration will be given to extending the response time.

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Dated at Arlington, Texas,

this

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day of December

1989

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APPENDIX D

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U.S. NUCLEAR REGULATORY COMMISSION

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REGION IV

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Combined NRC Inspection Reports:

30-05900/89-01

Licenses:

35-00502-02

30-05901/89-01

35-00502-03

30-05902/89-01

35-00502-04G

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150-00035/89-01 General License 10 CFR 31.5

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Dockets: 30-05900

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30-05901

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30-05902

150-00035

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Licensee: Halliburton Company

P.O. Drawer 1431

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Duncan, Oklahoma 73536

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Inspections At: Duncan, Enid, and Oklahoma City, Oklahoma

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Inspectors:

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G. M. Vasquez, Mdiation Specialist, Nuclear

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hterials Inspection Section

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5. Rajendran, Radiation Specialist, Nuclear

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Materials Inspection Section

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Approved:

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Charles L. Cain, Chief, Nuclear Materials

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Inspection Section

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Inspection Summary

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Inspection Conducted September 12 and October 10-12, 1989

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(Report 30-05900/89-01, 30-05901/89-01, 30-05902/89-01, and

350-00035/89-01)

Areas Inspected: A routine, unannounced inspection was conducted on

September 12, 1989, in Duncan, Oklahoma, followed by field office inspections

at Duncan, Enid, and Oklahoma City, Oklahoma, on October 10-12, 1989, of fixed

gauge and tracer material manufacturing, distribution, and use.

Specific areas

inspected included organization and scopesof the radiation safety program,

internal audits, and notifications and reports.

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In general, the licensee's radiation safety program appeared to be

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adequate.

Identified weaknesses related to the licensee's audit program and

materials accountability.

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Four apparent violations were identified:

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2.

Failure to post required documents (Section 3).

2.

Failure to perform an adequate audit of licensed materials (Section 4).

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Failure to perform audits of licensed tracer materials every 3 months

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(Section 4).

4.

Failure to notify NRC of a loss of licensed material (Section 5).

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DETAILS

1.

Persons Contacted

'Al Baker, President, Halliburton Services (Houston, Texas)

  • Ray Durbin, Corporate Attorney, (Duncan, Oklahoma)

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" Ronald L. Bechtel, Manager, Department of Government Regulations (Duncan,

Oklahoma)

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"kichard Leonardi, Radiation Safety Officer (Duncan, Oklahoma)

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Ralph Houser, Assistant Radiation Safety Officer (Duncan, Oklahoma)

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Roger Ledford (Duncan, Oklahoma)

Ron Coon (Duncan, Oklahoma)

Gary Phelps (Duncan, Oklahoma)

Dr. Ron Buchanan (Duncan, Oklahoma)

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Craig Smith, Field Supervisor, Vann Systems (Oklahoma City, Oklahoma)

IJim Lawson, District Manager (Enid, Oklahoma)

2A1 Rahimi, District Manager (Oklahoma City, Oklahoma)

3John Oswald (Duncan, Oklahoma)

3Ralph Voss (Duncan, Oklahoma)

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  • Telephonic exit briefing conducted October 16, 1989

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" Preliminary exit briefing conducted October 12, 1989

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Present during inspection at Enid field camp

2Present during inspection at Oklahoma City field camp

3Present during inspection at Duncan field camp

2.

Licensee Actions on previous Inspection Findings

(Closed) (30-05901/88-02 and 30-05902/88-01):

Failure to perform sealed

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source leak tests within the required 3 year period. The licensee had

revised their gauge computer program by adding additional instructions to

require each field site to check for source leak tests that may be due.

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The inspectors found no sources that were overdue for leak testing.

(Closed) (30-05901/88-02 and 30-05902/88-01):

Failure to leak test a

Ni-63 plated source every 6 months. The licensee issued formal letters to

appropriate departments located in Duncan, requiring confirmation that

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leak tests had been performed. The inspectors found no sources that were

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overdue for leak testing.

(Closed) (30-05901/88-02 and 30-05902/88-01):

Failure to conduct physical

inventories every 6 months of all sealed sources and/or devices. The

licensee had issued a computer generated notice to all appropriate

departments in Duncan and has monitored the responses. Based on a random

sampling of sources, inventories appeared complete,

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(Closed) (30-05901/88-02 and 30-05902/88-01):

Failure to label sealed

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sources " CAUTION RADIOACTIVE MATERIALS" or " DANGER - RADI0 ACTIVE

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MATERIALS." The inspectors reviewed labeling on selected. devices, and all

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were.found to be adequately labeled.

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(Closed) (30-05901/88-02 and 30-05902/88-01):

Failure to provide constant

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surveillance and immediate control of licensed material in an unrestricted

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area. The inspectors observed no material in an unrestricted area that

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was not under constant surveillance and immediate control.

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Oroanization and scope of the Radiation Safety Program

The Halliburton division and subsidiaries licensed by the NRC to possess

and use' radioactive materials include:

Halliburton Services (HS),

Halliburton Reservoir Services (HRS), Vann Systems Jet Research Center,

Otis Engineering, Halliburton Logging Services (HLS), and Halliburton

Geophysical Services, Inc. (HGS).

Each division and subsidiary has had

its own administrative structure and has operated independently of each

other. All divisions and subsidiaries were owned by Halliburton Company,

which has been viewed as a holding company.

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ThelicensedactivitiesoftheJetResearchhenter,HLS,andHGSwerenot

inspected.

Despite their autonomy, the Radiation Safety Officer (RS0) for HS has also

been the RSO for HRS, Vann Systems, and Otis Engineering. The licensed

activities for these four companies has been authorized by four NRC

licenses:

A.

License No. 35-00502-02 authorizes HS, Otis Engineering, and Vann

Systems to perform tracer studies in oil and gas wells, as well as to

use depleted uranium sinker bars. However, of the three companies,

Vann Systems was the only one in possession of licensed materials for

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tracer activities. The Vann Systems field office in Oklahoma City

possessed only 14 microcuries of Co-60 beads at the time of the

inspection.

HS, which previously had tracer materials at their field camps, has

transferred these materials to other licensed companies and has

performed final radiation surveys at field camps to ensure this.

Otis Engineering, which previously possessed uranium sinker bars has

transferred all licensed materials to HRS. A license amendment

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request to that effect had been submitted to NRC on August 21, 1989.

B.

License No. 35-00502-03 authorizes HS to research, develop, and

manufacture density gauges and logging instruments; manufacture

tracer sands; test decontamination procedures in the laboratory; use

calibration standards; and use laboratory devices containing licensed

material. Of these activities, the licensee has ceased

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decontaminating reactor components, manufacturing logging

instruments, and manufacturing tracer sands. However, the licensee

stated that they would like to maintain authorization to manufacture

ts acer sands and logging instruments as an option for the future.

The licensee's most significant use of radioactive materials

authorized under this license appeared to be the manufacturing of the ,

density gauges. Between November 1, 1988, and November 1, 1989, they

manufactured approximately 24 gauges per month.

These gauges were

then distributed under License No. 35-00502-04G to persons generally

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licensed pursuant to 10 CFR 31.5, mostly to HS field camps.

Each

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gauge contained a Cs-137 sealed source with activity of 10 mC1,

20 mC1, 55 mC1, or 100 mci.

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C.

License No. 35-00502-04G authorizes HS to distribute density gauges

to persons who possess a general license pursuant to 10 CFR 31.5.

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Most of these gauges were distributed to Halliburton divisions or

subsidiaries.

D.

HS utilizes the general license provided by 10 CFR 31.5 which

authorizes use of density gauges that are distributed under License

No. 35-00502-04G. Most of these gaugey have been located at various

Halliburton field camps in the United SFtates and abroad. Many have

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been attached to equipment on trucks and transported to and from

temporary job sites. Several of Ha111 burton's divisions and

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subsidiaries have been located in Agreement States and abroad.

The inspectors reviewed material transfer reports that were sent to the

NRC as required under 10 CFR 32.52. Also, labeling and markings of gauges

at the Enid, Oklahoma City, and Duncan field camps complied with license

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conditions.

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The RSO responsible for NRC License Nos. 35-00502-02, 35-00502-03,

35-00502-04G, and for the general license pursuant to 10 CFR 31.5, was

part of the Government Regulations Department at HS.

The Manager of the

Government Regulations Department has supervised a contract with a

consultant to perform routine field site audits required by the licensee's

audit program; however, the consultant has not reported to the RSO. The

consultant has reported to the Manager of the Government Regulations

Department.

The licensee has provided 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br /> of initial training to all personnel

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associated with gauge manufacturing. Training records were sampled and

appeared to meet the requirements of 10 CFR Part 19.

Interviews with

selected personnel also verified this. The Vann Systems authorized user

also appeared to be well trained.

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The inspecters reviewed records of receipt for Cs-137 sealed sources

shipped by the supplier.

The licensee stated that incoming transport

containers were surveyed to verify that material had not shifted in

transport.

Records of material transfer within Halliburton subsidiaries

were sampled and found to be adequate.

Film badge records were reviewed and were found to be complete.

Typical

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whole body exposures have been 1ew. The maximum annual personnel exposure

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for 1988 was 250 mrem.

The licensee's procedures.for radioactive waste disposal were reviewed.

Since the last inspection they have not disposed of any material.

The inspectors, reviewed the licensee's transportation activities to

determine compliance with 10 CFR Part 71 and the applicable regulations of

the Department of Transportation.

Proper shipping papers describing the

sealed sources in gauges were found to be in several trucks carrying the

materials.

At the Vann Systems facility, Co-60 beads had been secured in

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a locked storage box in back of a truck. They also reportedly carried the

necessary documents to the job sites in the truck,

Records of shipments

of gauges between Halliburton subsidiaries and temporary field sites also

appeared to comply with applicable regulati

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The irspectors also reviewed required postings. The Vann Systems field

office located in Oklahoma City, where approximately 14 microcuries of

Co-60 beads were stored, did not have the required postings.

This was

identified as a violation of 10 CFR 19.11 for License No. 35-00502-02.

The inspector observed, through a random sampling, that radiation survey

instruments at the manufacturing and research facilities had been

calibrated at 6-month intervals. Some users have sent their instruments

directly to the vendors and maintained their own calibration records.

The radiation safety program's organization was very complex and has been

in a state of change since the previous inspection. Halliburton has

several subsidiaries that are autonomous, yet whose licensed activities

overlap. Overall, the program's organization appeared acceptable.

One violation was identified.

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4.

Licensee Internal Audits

On September 23, 1987, the NRC issued an Order Modifying License, along

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with a Notice of Violation and a Proposed Imposition of Civil Penalty.

The Order originated when NRC determined that the licensee's completed and

proposed corrective actions for identified violations did not extend far

enough to ensure thorough management involvement.

The Order described the

requirements for a corporate audit program. The current approved audit

program was submitted in a letter dated December 21, 1988.

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Since 1957, the k nager of Government Regulations has supervised a

contract with an individual to perform routine audits of Ha111 burton's

field offices. The contractor has submitted all audit findings to the

Manager of Government Regulations. The RSO has also performed some of

these audits and suomitted all findings to the Manager of Government

Regulations.

The licensee stated that as of November 1988, all HS field camps in the

country have been audited. The licensee performed radiation surveys of

all field camps regardless of whether records indicated the camp possessed

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any licensed material. Th r was to ensure that none of the camps had

tracers, to document closeout surveys for those camps that in the past

possessed tracers, and to'look for unaccounted for sources, in addition to

fulfilling their audit program requirements.

The inspectors visited several Halliburton facilities in order to

determine the effectiveness of the corporate audit program.

It appeared

that the research departments and the gauge manufacturing operations in

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Duncan were audited as required. The inspectors also visited three HS

field camps and one Vann Systems facility. The three HS field camps

appeared to have been audited, but two had discrepancies that should have

been discovered by the audits.

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At the Oklahoma City facility, the inspector determined sealed source

Serial No. 5277, a 9.5 mC1 Cs-137 source, was received in th: facility in

February 1984 but was not on the facility's inventory. Additionally,

sealed source Serial No. S750 was on the facility's inventory, but the

source was not at the facility and the district engineer had no records of

ever possessing the source. These items were discovered during the

inspection despite audits conducted by the contractor on December 30,

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1987, and December 15, 1988.

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During the inspection of the Duncan facility, sealed source Serial

No. X350 was found during the inspector's facility tour in an authorized

storage location in plain view with other gauges. The licensee stated

that the source had previously been on the list of unaccounted for sources

for approximately 1 year. The district engineer was aware of the device

and stated that it had been at the c1mp for several years. However, it

was not on their inventory. Despite an audit conducted by the contractor

on September 22, 1988, thelicenseepresumedthissourcewasmissing.

The fact that the audit program had not identified the discrepancies

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indicated inadeq w te audits of the field camps. This was identified as a

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violation of License Condition 19 of License No. 35-00502-03 which

references the Radioactive Safety and Material Audit Program, originally

ubmitted to the NRC in a letter dated October 22, 1987, revised

February 3, 1988, and revised again on December 21, 1988.

The Vann Systems facility in Oklahoma City was also inspected. The

inspector determined that no audits had been performed in calendar year

1989.

Failure to perform comprehensive audits of licensed tracer

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etterials every 3 months was identified as a violation of License

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Condition 13 of.NRC License No. 35-00502-02.

This license condition

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references a letter dated December 21, 1988, which describes the audit

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program.

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In general, it appeared that facilities had been audited within the

-required time periods; however, some of the audits were not effectively

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performed.

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Two violations were identified.

5.

Notifications and Reports

When an inspector asked if the licensee had a loss or theft of licensed

material, the licensee's management stated that they had no lost sources,

but they did have some sources that were unaccounted for.

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At the inspector's request, the licensee developed a list of all the

sources whose whereabouts were unknown to the licensee.

On October 11,

1989, the licensee presented the list to the inspectors. A copy of this

list is attached as Appendix E.

HalliburtonCompany'sdivisionsandsubsidiahiesoperatefieldcampsin

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nonagreement states, agreement states, and abroad. Though the field camps

have low turnover of these devices, they do transfer them among their

numerous locations both domestically and abroad. Therefore, it appears

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that each of the divisions and subsidiaries, while in NRC jurisdiction,

have been individually authorized under 10 CFR 31.5 to possess, store, and

use these gauges. However, the Governmert Regulations Department at HS

)

has been designated by Halliburton Company to act on behalf of the various

divisions and subsidiaries in regulatory matters. Also, the manager of

Government Regulations has been the chairperson of the corporate radiation

safety committee.

In the latter part of 1986, the Government Regulation Department in HS,

began working on a computer program to track the locations of generally

and specifically licensed sources, as well as their leak tests. They sent

letters to all the field camps in an attempt to determine the locations cf

all gauges. Additionally, the Government Regulations Department has kept

logs of material transfers among the camps. The computer-based tracking

program was based on the responses from the field camps, the logs, and

other records.

By the middle of 1987, the first reports were generated from the computer,

and the licensee started auditing their field sites. By November 1988,

all domestic Halliburton field locations had been audited and the list of

unaccounted for gauges was substantially shorter than originally

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estimated.

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Sinca Nnvember 1988, the only new action taken by the licensee to look for

these lost sources has been to contact overseas operations and have them

report their inventory. Though the licensee had demonstrated progress in

attempting to locate these gauges through November 1988, very little

progress has been made since then.

The following Cs-137 source serial nos. were last known to be in Oklahoma,

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a state where NRC maintains jurisdiction:

5-622 (10 mC1), X-030 (10 mci),

CS2-751 (10 mC1), Y-211 (10 mci), Y-61 (10 mC1), A-424 (50 mC1), and X-375

(10 mci). Since November 1988, the licensee has neither located the

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sources nor reported them to NRC as missing.

Failure to notify NRC of a

theft or loss of material was identified as a violation of

10 CFR 20.402(a) for the General License authorized under 10 CFR 31.5.

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One violation was identified,

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6.

Exit Interview

A preliminary exit briefing was conducted on October 12, 1989, with the

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individuals identified in Section 1.

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A telephonic exit briefing was conducted on getober 16, 1989, with the

individuals identified in Sectinn 1; the Chi'hf, Nuclear Materials

Inspection Section; and the inspector. The specific findings were not

discussed; however, NRC's concerns about a clear delineation of

responsibility associated with the management of the radiation safety

program were discussed.

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APPENDIX E

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UNACCOUNTED FOR RADI0 ACTIVE DENS 0 METERS

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Source

Densometer

Source Act.

Last Leak

last Known

Date Densometer

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Serial #

Serial #

(MC1)

Test Date

Location

Acknowledged Missing

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Z-103

W35-0018

55.8

03/24/86

Unknown

8/86

'

S-662

730508

10.0

01/11/79

Unknown

?

.

X-030

31V111(or)

10.0

03/25/80

Unknown

?

l-

31V136

X-007

73716

10.0

11/19/79

Pa11stine, TX.

?

,

C52-724

W41-0043

55.0

05/04/83

Vernal, UT.

?

'

CS2-751

73-1101

10.0

01/13/84

Unknown

?

,

!

X-211

31V442

10.0

12/23/86

Duncan, OK.

09/28/89

'

.

Y-61

6]N61995C

20.0

01/21/85

Davis, OK.

?

A-424

Unknown

50.0

02/21/73

Duncan, OK.

?

,

X-375

Unknown

10.0

01/05/82

Duncan, OK,

?

918

MD-002

10.0

02/10/72

Turkish Pet.

?

S-188

MS-341

10.0

04/15/75

Mission Marine

?

South Africa or

United Dubai, Arab

a

Emirates

855

MS-13

10.0

07/15/71

Key West South Am.

?

A-454

MS-246

10.0

03/26/73

Sold to Sedeo N. Sea ?

'

A-597

PFD-244

10.0

12/10/73

Scarborough IN Drill ?

Ship, Italian Oil Co.

829

73-1515

10.0

08/22/84

Egypt

?

A-499

MS-106

10.4

08/22/73

Global Marine Unit

?

  1. 712, Orange, TX.

S-664

73635

10.0

01/11/79

Dubai, United Arab

?

Emirates

S-553

73538

10.0

08/30/78

Qatar

?

821

MS-6

10.0

10/28/69

Atwood Oceanonic,

?

(BigJohn), Sabine

Pass, TX.

l-

,

e

-

.

. . -

.