ML20057G043

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Discusses Telcon in Aug & Sept 1993 Re Possible Change to Provisions of Confirmatory Order & Forwards Modified Confirmatory Order for Signature
ML20057G043
Person / Time
Issue date: 10/18/1993
From: Lieberman J
NRC OFFICE OF ENFORCEMENT (OE)
To: Preston R
AMERICAN TESTING & INSPECTION
References
EA-92-102, NUDOCS 9310200120
Download: ML20057G043 (2)


Text

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B NUCLEAR REGULATORY COMMISSION 3

i WASHINGTON, D.C. 2066EW)001 s

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General Licensee 10 CFR 150.20 EA 92-102 American Testing and Inspection, Inc.

ATTN:

Mr. Ronald Preston President i

19060 Loretta Lane Country Club Hills, Illinois 60478

Dear Mr. Preston:

SUBJECT:

MODIFIED CONFIRMATORY ORDER I

This refers to the telephone conversations in August and September 1993 between you and Ms. Patricia A. Santiago, of this 1

office, regarding a possible change to the provisions of the Confirmatory Order.

The terms of the Order had been proposed by you in lieu of payment of the civil penalty since ATI had recently declared bankruptcy.

You agreed to the terms of the l

Order on March 19, 1993.

In that Order, you agreed not to engage in licensed activities within NRC jurisdiction for a three year j

j period.

Since that time you have indicated a need to resume work in radiography in order to earn a livelihood.

In a telephone call on September 23, 1993 with Ms. Santiago, you agreed to a modification of the Confirmatory Order to permit you to work in NRC jurisdiction as an assistant radiographer, with the understanding that the withdrawal of the civil penalty in the amount of $15,000 would remain in effect.

It was further l

understood that the modification would also require you to notify l

the NRC of obtaining employment in licensed activities at least l

five days prior to and that you would provide a copy'of t. commencing that employment, i

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his Modified Confirmatory Order to your employer prior to commencing work.

Therefore, we have ;4rapared the attadhed' Modified Confirmatory Order.

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If you wish to have the Confirmatory order modified in this manner, you must sign the enclosed Order in duplicate, under oath or affirmation, and submit it within 30 days of the date of this letter to the Director, Office of Enforcement, U.

S. Nuclear Regulatory Commission, Washington, D.

C.

20555.

Following receipt, I will return a copy of the signed' order to you.

If you CERTIFIED MAIL RETURN RECEIPT REOUESTED i

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i 9310200120 931018 Ik PDR STPRG ESGIL I

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9 American Testing and Inspection, Inc.

decide not to enter into this Modified Confirmatory Order, the provisions of the existing Order will remain in place, and you will remain prohibited from performance of any licensed activities within NRC jurisdiction until March 23, 1996, as provided in the original Order.

If you have any questions concerning this matter, please contact Ms. Santiago at 301-504-3055.

l Sincerely, A

ames Lieberman, Director Office of Enforcement l

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o UNITED STATES NUCLEAR REGULATORY COMMISSION In the Matter of

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General License AMERICAN TESTING AND

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10 CFR 150.20 INSPECTION, INC.

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EA 92-102 Country Club Hills, Illinois

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MODIFIED CONFIRMATORY ORDER I

i American Testing and Inspection, Inc. (ATI), was formerly holder of State of Illinois Byproduct Material Licensa No. 01085-01 (License) issued on January 8, 1988.

The License authorized the possession and use of sealed sources of iridium-192 in industrial radiographic exposure devices to perform licensed activities within the State of Illinois.

Pursuant to 10 CFR 150.20 and its License, ATI was authorized to possess and use licensed byproduct materials to perform industrial radiography in non-Agreement States.

ATI's License expired on August 31, 1992.

The License was transferred to McNDT Leasing, Inc. and amended in its entirety in accordance with letters dated August 31, 1992 and September 3, 1992.

II An inspection by the Nuclear Regulatory Commission (NRC) was conducted on February 12 through March 27, 1992, of ATI's activities that were conducted in the States of Indiana and Michigan (non-Agreement States).

Six violations were identified, including (1) the failure to file NRC Form 241 on 174 days in 1991 when performing radiography in non-Agreement States in

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! accordance with 10 CFR 150.20(b) (1) ; (2) performing radiography in non-Agreement States on more than 180 days within calendar year 1991 in violation of 10 CFR 150.20(b) (3); and (3) the failure of ATI to have a qualified independent organization observe ATI's radiographers or conduct an audit of ATI's radiation safety program in violation of Section IV.C. of an Order Modifying License that was issued by the NRC to ATI on November 30, 1989.

The NRC issued Enforcement Action (EA)92-102 against ATI consisting of a Notice of Violation and Proposed Imposition of Civil Penalty-$15,000 (Notice) dated October 7, 1992.

Mr. Ronald j

Preston, formerly President, ATI, responded on November 30, 1992, to the Notice admitting the violations, but requesting that the proposed civil penalty be vacated since ATI had gone into Chapter 7 bankruptcy and ceased industrial radiography operations.

The Notice did not preclude Mr. Preston from performing radiography under another licensee's Agreement State license and, pursuant to 10 CFR 150.20, from engaging in licensed activities in NRC jurisdiction.

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-3 III A Confirmatory Order was issued on March 24, 1993, which constituted settlement of the civil penalty proposed in the Notice.

In that Order, the civil penalty was withdrawn on the basis of Mr. Preston's inability to pay the $15,000 civil penalty and subsequent proposal that for a period of three years, he, ATI, or a successor entity wherein Mr. Preston is an authorized user, radiographer, radiographer's assistant, Radiation Safety Officer, an Assistant Radiation Safety Officer, an officer, or a controlling stockholder, would not apply to the NRC for a new license, nor would Mr. Preston, ATI, or a successor entity, as described above, engage in licensed activities within NRC jurisdiction for that same period of time.

IV The Confirmatory Order was executed on March 24, 1993.

In August and September 1993, Mr. Preston indicated a financial need to engage in licensed activities;.o&ever, he remained unable to pay the $15,000 civil penalty.

Specifically, on September 23, 1993, Mr. Preston contacted Ms. Patricia A.

Santiago of the NRC Office of Enforcement, and indicated he was unable to obtain a loan or funds and requested that he be permitted to work as an assistant 1

radiographer.

In light of the fact that Mr. Preston has l

recognized the violations that led to the previous enforcement l

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-4 action, and Mr. Preston's inability to pay the $15,000 civil penalty and need to earn a livelihood, the NRC has reconsidered t

its previous order, and is satisfied that with the protections afforded by the supervision provided to an assistant l

l radiographer, the Confirmatory Order may be modified as set forth below consistent with protection of the public health and safety.

The NRC is willing to modify the Confirmatory Order to permit Mr.

l Preston to work as an assistant radiographer, with the addition j

of certain notice requirements.

V Accordingly, pursuant to sections 81, 161b, 1611, 186, and 234 of l

l the Atomic Energy Act of 1954, as amended, and the Commission's regulations in 10 CFR 2.202, 2.205, and 10 CFR Parts 30, 34, and 150, IT IS HEREBY ORDERED, STIPULATED AND AGREED between the NRC i

and Mr. Preston as follows:

l 1.

Except as provided in paragraph 4 below, the NRC withdraws the civil penalty of $15,000 as proposed in the Notice dated October 7, 1992 (EA 92-102);

2.

Until March 23, 1996, Mr. Preston, ATI, or any successor entity, wherein Mr. Preston is an authorized user, radiographer, Radiation Safety Officer, an Assistant Radiation Safety Officer,

I an officer, or a controlling stockholder, will not apply to the NRC for a new license.

3.

From the date Mr. Preston signs this Modified Confirmatory Order until March 23, 1996, Mr. Preston may engage in licensed activities within NRC jurisdiction only as an assistant radiographer.

He may not act as a radiographer, supervisor, or Radiation Safety Officer within NRC jurisdiction.

If Mr. Preston acts as an assistant radiographer within NRC jurisdiction during this period, he shall:

4 Notify the Regional Administrator, NRC Region III, 79 a.

Roosevelt Road, Glen Ellyn, Illinois, 60137, at least five days prior to his being employed to perform work as an assistant radiographer within NRC jurisdiction.

The Notice shall include the name, address, and telephone number of the NRC or Agreement 4

State licensee; and 2

l b.

Provide a copy of this Modified Confirmatory Orde.r to i

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any employer' holding.either an NRC license or an Agreement State l

1 license performing licensed activities in NRC jurisdiction, prior to his performing work for that employer as an assistant radiographer.

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Notwithstanding the provisions of paragraph 1, above, in the 4.

event that Mr. Preston, ATI, or a successor entity violates

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, paragraph 3 of this Section, then the civil penalty of $15,000 1

will be reinstated by an Order Imposing Civil Penalty and the civil penalty of $15,000 will be due in full within 30 days of the date of that Order Imposing Civil Penalty.

j 5.

Mr. Preston, ATI, and any successor entity waive the right j

to contest this Modified Confirmatory Order in any manner, including requesting a hearing on this Amended Confirmatory Order or the Order Imposing Civil Penalty, should one be issued as provided in paragraph 4 of this Section.

i FOR THE NUCLEAR REGULATORY COMMISSION i

Dated:

BY:

FOR AMERICAN TESTING AND INSPECTION, INC. AND RONALD PRESTON e

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Dated:

BY:

Ronald Preston Notary:

OCT 181993 American Testing and Inspection, Inc.

DISTRIBUTION:

PDR CA SECY JTaylor, EDO HThompson, DEDS JBMartin, RIII JLieberman, OE PSantiago, OE JGoldberg, OGC RBernero, NMSS Enforcement Coordinators RI, RII, RIII, RIV, RV FIngram, PA BHayes, OI DWilliams, OIG EJordan, AEOD VMiller, SP EA File DCS f

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