ML20125B852

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Nonproprietary IE Insp Rept 76-02 on 760309-0415. Noncompliance Noted:Radwaste Removed from Shipping Containers,Radwaste Not Disposed of within Six Months from Date of Receipt & Disposal of Uncontained Radwaste
ML20125B852
Person / Time
Site: 02700010
Issue date: 05/11/1976
From: Book H, Phillip G, Wenslawski F
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION V)
To:
U.S. ECOLOGY, INC. (FORMERLY NUCLEAR ENGINEERING
Shared Package
ML20125B848 List:
References
15000027-76-02, 15000027-76-2, NUDOCS 7912280653
Download: ML20125B852 (88)


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i REGION V

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IE Inspecticn Report flo.

76-02

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I Licensee:- Nuclear Encineerino Comoany, Inc.

Docket No.

27-10 9200 Shelbyville Road Licenso flo. A-3766-1 f":

Louisville, Xentucky Priority 2

Facility: Land Burial Site Category 0

location:__ Beatty, Nevada Type of Facility:

Land Burial of Radioactive Material Type of Inspection: Soeciai

" W-C-1 Dates of Inspection:

March 9 to Aoril 15, 1976 Dates of Previous Inspection:

February 3,1976

[AG.g 6'//c,/ g Principal Inspector: /

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F. A. Wenslawski

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G. A. Phillip u

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< Date Other Individuals Involved:

W. C. Horton, State of tievada R. S. Trounday, State of :levada J. J. Ward, ilPC P. R. Zurakowski, t!P.C R. F. Fish, tiRC J. R. Curtis, tiRC R.

. Smith, tlRC Reviewed by:

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'I/// [76 H. E. Book, Chief, Fuel Fr.cility and Materials

' Data Safety Branch 90003127 f.1 gs_LL/Q.

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TABLE OF CONTENTS I.

Introduction II.

Background

III. Summary Scope of. Events IV.

Enforcement Action Y.

Report Details A.

Survey Effort B.

Summary of Materials Recovered C.

Investigative Effort D.

Bennett Buckets E.

Liquid Waste Handling Practices at Beatty Facility F.

Environmental Sampling G.

Whole Body and Bioassay Analyses H.

Inspection of NECO Richland, Washington Facility VI.

Exhibits (1 through 13, signed statements)

VII. Attachments A.

State of Nevada Order Suspending Licensed Activities B.

State of Nevada, Statement of Authority for Investigation C.

NRC Order Suspending Licensed Activities D.

Bennett Bucket Letter E.

Photograpns F.

Environmental Protection Agency Report of Effort in Beatty Survey 4

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Introduction On March 9,1976 the P.egion V Office of inscection and Enforcement (IE:V) dispatched an inspector to Nuclear Engine 6 ring Company's (NECO) Beatty, Nevada waste disposal site in response to informa-tion that radioactive materials had been removed from the site.

In cooperation with State officials, information was quickly gathered indicating an extensive removal of radioactive materials from the disposal site.

The ensuing events included a comprehensive radiation survey and recovery operation in the town of Beatty and neighboring ranches as well as detailed investigations to determine the circum-stances and details of the situation.

II. Background The NECO facility near Beatty, Nevada was licensed to receive and dispose of low level radioactive waste in 1962 by the former Atomic Energy Commission.

In 1972 the State of Nevada became an AEC agreement state and assumed responsibility for licensing and inspecting of NECO's activities involving source and byproduct materials.

Natural. occurring radioact.ive materials (such as radium) not subject to regulation by the AEC were also included in the State's regulatory program. Activities involving special nuclear material remained under the jurisdiction of AEC. As a result, since 1972 the facility nas operated under licenses frem both the State and the AEC (now NRC).

Material shipped for disposal at the NECO facility came from a wide variety of users of radioactive materials including military, medical, industrial and research facilities. Although contaminated demineralizer resins and liquid waste were shipped to the facility for disposal, a large quantity of the material arriving at the NECO site consisted of equipment that became contaminated during usage involving radioactive materials. This equipment consists of items such as protective clothing, tools, laboratory equipment and instruments, electric motors, piping, wiring and other miscellaneous paraphenalia. Generally, the level of contamination on most of the material is low.

The potential, however, for more significant levels of contamination with proportionally increased hazards is real.

In the specific instance of the Beatty discosal. site, it is known through discussions with NECO site employee *t M M that in addition to tne type of items describeo acove, V ousands of radium dial clocks, watches, compasses, a'ssorted gages and other similar oosolete military equipment were received at the site for disposal over the years.

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s The conditions revealed by the NRC *:nvestigation were unusual, to say the least. We believe the uniq;c characteristics of the area, its remote locaucr., and the life style ud tacy. grounds of the surrounding residents were all contributing icc; ors in the overall

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situation. The following background information is intended to add some perspective.

Beatty, Nevada is a small desert crossroads town of approximately 500 people located about 125 miles north of Las Vegas on U.S. Route 95 and about 10 miles north of the NECO disposal site. The area is bordered on the west by the Death Valley National Monument and on the east by the Energy Research and Development Administration's Nevada Test Site (NTS).

There are about 280 dwellings, schools, ranches, motels and other businesses in and around Beatty.

Several of the ranches are quite large. Most of the residences are mobile homes and trailers.

Employment in the town generally ecmes from the Nevada Test Site, tourist related businesses such as motels and restaurants, mining operations and the waste burial facility operated by NECO. The NECO facility recently employed seven individuals but has employed as many as 15 depending on the workload. Many residents of Beatty are former NECO employees o; relatives or friends of employees or former employees.

Because of the difficulty and cost of obtaining new materials in such a remote location, the people of Beatty appear reluctant to part with any item that may have salvage value. As a result, it was observed that many Beatty resicences and neighboring ranches J

have accumulated stockpiles of a wide variety of salvage including lumber, tires, automobiles, appliances and many other things that might be useful at some later time.

The proximity of the Nevada Test Site and the frequent underground-nuclear tests are of little apparent concern to the Beatty residents.

The town ~ experiences a ground shock with most tests.

Prior to each test, officials from the Nevada Test Site tour the area to warn residents of the upcoming test. This is all taken with little or no apprehension.

As a result of the long-time familiarity with nuclear energy and the association with employees or friends and relatives of employees with the NECO facility, operation of the NECO facility has encountered little, if any, opposition or concern from the townspeople.

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4 III.' Summary Scoce of Events During the approximate occiod of early February 1976 N at tne NECD aeatty facility noticed that the company's stockp11e of bagged cement was alminishing unproportionally to the quantity of liquid waste being solidified.

Upon investigating,6 discovered that other NECO employees had been using the company cement mixing truck and materials to pour concrete on several different jobs in tne town of Beatty.

Since the truck was used onsite to solidify liquid radioactive waste, the truck was considered contaminated and should not have been used offsite. The & reported tne matter 6 After further internal investiga-tions NECO reported the matter to appropriate officials of the State of Nevada, since the liquid waste solidifications are con-ducted under tne State of Nevada license. On February 24, 1976 the State notified NRC that it was investigating the report from NECO.

During the State's investigation of the cement mixer occurrence, it was discovered that other materials had been removed from the site in past years and were distributed in the town of Beatty.

The State of Nevada issued an order (Attachment A) on March 8, suspending the company's license, thereby halting all State-licensed operations at the facility.

The State also requested radiological assistance from *.he Environmental Protection Agency's (EPA) Las Vegas facilities l

to help locate radioactively contaminated materials in the town of Beatty.

Upon notification by the State that it had reports of removal of-radioactive items from the NEC0 facility, the NRC Region V office

, dispatched a radiation specialist inspector to Beatty on March 9, 1976 to determine if any of the allegations involved the Federal license.

Since the NRC license authorizes only operations in-volving special nuclear materials, there were no specific allega-tions or evidence at that time that the NRC license had been violated.

On the afternoon of March 9, the NRC inspector met with and M at the NECO facility. The insoector was informed that the m and two other former employees M nad been discharged frcm the company for involvement in the cement mixer occurrence.

Neither or 6 were aware of any specific allegations of removal of materials from the site other than :ne cement mixer.

It should be noted that 6 nad reported to the site the same day and the S had been employed for acout one year.. They informed tne in-spector that State officials were scheduled to be at the site on the morning of March 10.

They also confirmed NRC's understanding that NECO had ceased all operations associated with the Beatty site including SNM operations.

This understanding was reaffirmed in a letter issued by the NRC Region V office to the company on March 10.

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On the early morning of March 10, at the NECO site, the NRC in-spector met witn R. Trounday, Director, rep;rtant of Human Resource:,

State of Nevada and W. Hcrten, Su; 2rvisor, L.dhicgical Healta, State of Nevada and was informed in.:: ore detail cf tne allecation received by the State and of the State's intention to conduct radiation surveys in the town of Beatty.

The State had also scheduled a 10:30 a.m. meeting with EPA which the inspector attended.

The course of action established during tne meeting with EPA was to conduct a house by house and lot by lot radiation survey in the town of Beatty and outlying ranches with particular attention to

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any items or materials which conceivably may have come from the NEC0 site, e.g., tools, electric motors, laboratory equipment, etc.

The State had previously arranged for tne legal authority for the survey as illustrated by Attachment B.

It was also agreed that more specific information on the basic allegation of offsite removal of materials was needed.

During the aftern'oon of March 10.. while EPA Segan under the general 1

direction of the State, detailed surveys of private residences, the i

NRC inspector and Mr. W. Horton of the State jointly interviewed who have been employed at the NECO site for seven and ten years, respectively.

During this interview, both in-dividuals disclosed tnat in years past the opening of containers received at the NECO site was a common practice and materials originally destined for waste were removed from the site in large quantities. Both individuals stated that once a container was opened, the contents were spread out and there existed a "take what you want" policy. hiso stated that materials from the site had also been sold for profit.

Both individuals said that most offsite removal of materials occurred during the time period of early 1967 to early 1973 whil l

Both individuals stated that in adcition to the town of Beatty, material was distributed to neighboring ranches and possibly to more distant locations as Pahrump, Indian Springs and Fallon, Nevada and possibly to some locations in California. Material stated to be removed frem the site included large quantities of plywood originally used as snipping containers; t:ols of all kinds, clany identified by magenta paint markings and the inscription "CTR"; electric motors; "Bennett Buckets" whicn are 6 foot diameter, 7 foot high carbon steel shipping containers used by Lawrence Lisormore Laboratory (LLL) and Lawrence Berkeley Laboratory (LSL);

radium dial clocks, compasses and gauges and various other assorted equipment.

Both indivicuals indicated that only minimal radiation surveys were performed on materiais removed from the site.

The '

survey results were not documented nor was any record made of the transfers.

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By the evening of Wednesday, March

'O, information gathered during interviews with and initial EPA radiation survey results pointed to the wide.pread raw,21 of contaminated equipment and materials from the isEC0 facility.

On March 11, 1976 NRC issued an order to flEC0 suspending NRC licensed activities at the Beatty facility (Attachment C).

In addition, NRC requested radiological assistance from the Energy Research and Development Administration (ERDA) to assist in the

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comprehensive radiation surveys already initiateo in the town of Beatty. An NRC investigator was dispatched to Beatty to begin detailed investigations.

An additional t'RC IE:V radiation specialist inspector was also dispatched to lend ass,istance.

Other flRC personnel were dispatched to flRC licensed waste disposal sites at Richland, Washington; Barnwell, South Carolina; and Sheffield, Illinois to assure a similar problem did not exist at those locations.

No adverse findings were disclosed at those locations.

Since the Richland inspection was conducted under the auspices of HRC, IE:V, more details of that inspection are contained in paragraph V.H.

Because the State of Kentucky has soir jurisdiction over a waste disposal site in Morehead, Kentucky, the State was notified of the Beatty situation to allow independent action concerning the Morehead site.

On the afternoon of March 11 the NRC inspe: tor at Beatty met with ERDA representatives to brief them on the ;, cope of the problem.

By Friday morning, March 12. ERDA had respond 1d with additional manpower and equipment.

Comprenensive surveying and investigation continued-through Sunday, March 14. Also on Sunday, H. E. Book, Chief, Fuel Facilities and Materials Safety Branch, IE:V and R. H. Engelken, Director of IE:V arrived in Beatty.

Both individuals were briefed on the latest status of events and toured various places where materials had been located. A meeting was held with State and EPA officials and anotner with ERDA officials to su.mari::e findings to date and to agree upon followup activities.

By late Sunday after-noon, the bulk of the survey and recovery effort was cocolete, although various " loose ends" necessitated continued efforts.

l O'n Monday, March 15 after completion of the immediate action phase of the operation, NRC, flECO, and EPA representatives met with the Governor of Nevada and other State officials to hold a debriefing.

The Governor was well informed about tne entire episode and ex-pressed his concerns and initial inclinations.

tio formal con-clusions were reacned at tne meeting pending continued investi-gations and surveys. A joint State /fiRC press conference was held after the meeting. Additional investigations and surveys continued through the period of Mar.h 16 through 26 in Beatty, Indian Springs, Pahrump and Fallon, flevada and Richland, Washington.

Whole body counting and bicassay analysis were also coordinated and conducted during this ceriod on individuals wna mignt have come into the closest and most frequent contact with contaminated items.

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IV Enforcement Action As a result of the special inspecticn of matters described in this report, the following specific items of noncompliance with NRC regulations have been identified:

A.

License Condition 10 prohibits the removal of radioactive waste from shipping containers under certain specified -

conditions, and limits use of waste radioactive materials to receipt, processing, packaging, storage and disposal of special nuclear material.

Contrary to this requirement, various items contaminated with special nuclear materials, including a beam balance, laborator devices, y scale weights, a section of plywood, two mixing and a chain hoist and hoist support were removed from radioactive waste' shipping containers, salvaged, transferred to others, diverted to personal use by employees or diverted to regular use by the licensee.

B.

License Condition 17A requires that radioactive waste material shall be disposed of by burial in soil within six months from the date of receipt of the radioactive material.

Contrary to this requirement, various items contaminated with special nuclear materials, including a beam balance, laboratory scale weights, a section of plywood, two mixing devices, and a chain hoist and hoist support were not dis-posed by burial within the six-month limit.

C.

License Condition 17E specifies that there shall be no disposal of uncontained radioactive waste.

Contrary to this requirement., uncontained radioactive waste was dumped into the burial trench in order to salvage Bennett Buckets and plywood frcm radioactive waste shipping containers. The contents of many of these containers' included special nuclear material.

D.

License Condition 12 permits burial of packages containing only solid radioactive materials. Burial of packages containing liquids is not authcrized.

Contrary to this reouirement, packages conta ning solutions of special nuclear material in double wall containers surrounded by absorbent material were placed directly into the burial trench as received.

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Renort Details A.

Survey Efforts 1.

Initial survey efforts began en Wednesday afternoon, l

March 10,1976.

EPA personnel from the Office of Radiation Programs and the Environmental Monitoring and Support Laboratory, two separate Las 'legas EPA entities, comprised the EPA survey team.

D. Hendricks, Director. Office of Radiation Programs, Las Vegas Facility was in charge of the EPA personnel with overall direction provided by R. Trounday and W. Horton of the State.

EPA manpower varied between 8 to 10 individuals.

The basic survey instrument used was a portable, gamma scintillation survey meter with a lower scale reading of 0-30 uR/hr. Background in the Beatty area was i

generally 10-15 uR/hr.

Portable alpha survey instruments were available and used as needed. No street maps of Beatty were available and copies of an aerial photograph were used to identify locations. The town proper was divided into quadrants and a systematic survey tegan.

Personnel worked on an individual basis, carefuliy surveying each room of residences, as well as yards, garages, storage sheds, business establishments and the piles of salvable items prevalent throughout the. town.

Plywood, which was widely used throughout the town, was surveyed on a random basis at the discretion of the i

survey team members. General ground rules were to perform a thorougn gamma survey, make note of any suspi-cious looking items for followup alpha suryeys, only t

pickup items exhibiting positive indications of radio-activity, and make note of identified contaminated items which were not picked up in order to allow later pickup.

Small individual items were picked up by the surveyors while large items or numerous items were picked up by NECO. All items were returned to t'ECO for holding.

An EPA aerial reconSissance aircraft was used to provide photographs of one large nearby ranch M where much material was alleged (and later founc) to be located.

2.

ERDA survey eff:r'.s began on Friday, ?. arch 12.

The ERDA team consisted of EROA c:ntracters, including EGIG, Inc.,

Lawrence Livermore Laboratory (LLL) sad Reynolds Electrical

& Engineering Co. (REECH.

B. Chur:n, Chief, Radiological Branch, ::evaca Operations Office, ERC;, was in charge of the ERDA team with overall direction provided by tne NRC.

The EPA and ERCA survey efforts 'aere quickly integrated 90003137

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. with overall responsibility being fointly shared by the State and NRC.

The ERDA team ccasistcc of three, two man alpha survey teams whicn imediately began surveying in unison with the EPA survey team.

In addition, the ERDA team included an EG&G helicopter equipped with a large array of sodium iodide gamma detectors which was used to help survey key areas of M ranch (72,000 acres) and some other outlying ranches; a LLL counting van equipped with a portable GeLi detector and multi-channel analyzer used for isotopic identification and analysis of samples and in situ analyses; an EG1G van equipped with a large array of sodium iodide gamma G ranch and th$ neutron detectors used on individua detectors and BF town of Beatty proper; a REECO sodium iodide gamma detector with a multichannel analy:er, and a portable gas proportional beta / alpha detector with scaler, set up in the motel being used as a " command post". The ERDA team also provided a base of radio communications at the " command post" and walkie-talkies for field use.

3.

After one day, use of the EG&G telicopter and van was discontinued wnile hand held instrument surveys con-tinued. The bulk of the survey effort in and around Beatty was completed by Sunday evening, March 14 when the survey teams were disbanded. Approximately 35 indivi-duals had been involved in the Seatty area survey effort.

4.

By Friday, March 12, during the peak of the survey effort, the survey teams began to hear rumors that some material was being buried, disposed of in the desert or otherwise hidden by residents, apparently out of fear of being

" caught with materials".

State officials, headed by Roger Trounday, Director of the Cepartment of Human Resources, called a town meeting on Friday night at the school gymnasium to explain the situation and ask for the assistance of the townsceople in identifying and locating material from the facility.

About 120 residents attended the meeting.

Notice of ne meeting was spread by the Mye County deputy sheriff.

Using a statement prepared oy the NRC, IE:V public informaticn officer wno nad reported to the site, Trounday exclained tne reasons for the inves-tigation and the results tna; the survey teams had found to that point.

He also cxplained that it was not the interest of either tne State or the Federal agencies to 90003138

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The agencies' in-terest was merely in recoverin'g the material, getting it back to the disposal site where it belonged and assuring that there was no health hazard to the townspeople.

It was stressed that there was no innediate health hazard but that some of the material could pose a potential health hazard. A question and answer period followed i

Trounday's presentation.

Results of the town meeting were evident on Saturday and Sunday as people voluntarily returned miscellaneous items.

5.. Although the formal survey teams were disbanded on Sunday, March 14, isolated survey efforts continued through Friday March 26'.

EPA and NRC personnel continued surveying previously missed locations in and around Beatty.

On Thursday, March 18, State, NRC, EPA and ERDA personnel arrived in Pahrump, Nevada to perform surveys in that area.

Several former employee residences and one machine shop where materials'were alleged to be, were surveyed in Pahrump.

6.

EPA has prepared a detailed report of their survey efforts in Beatty. A copy of this report is provided as Attarhment F to this report.

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B.

Sumr.aryofMpterialsRecovered 1.

On a per item basis, the majority of items recovered were radium painted objects suca as radium dial clocks, compasses, watches, assorted gages, transits, various objects with radium glow buttons and other obsolete radium containing equipment (mostly military issue). Radiation levet associated with this equipment were generally Icw, less

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than 5 mrad /hr beta / gamma on contact but ranging upwards to 150 mrads/hr on contact.

It should be noted that the contact radiation levels represent the maximum exposure.

Realistically, exposure rates to individuals in the vicinity of these objects were considerably lower. As an example, a radium (ial clock measuring 50 mrads/hr on contact beta / gamma, measured only 9 uR/hr above background at one meter distance.

2.

lthough there were numerous radium objects recovered, radium items accounted for a small percentage of the total volume and mass.

Other items included electric motors and pumps, piping, wiring, plywood and planks of wood, a disassembled contamination change room, a large tractor tire, laboratory equipment, a hoist and hoist support, lead bricks, various tools, plastic hose, tool boxes and other assorted equipment. Of all plywood surveyed, only a few pieces were found contaminated.

Approximately 20 to 25 pickup truck loads were required to haul items back to the NECO facility. A 40 foot flatbed trailer was used to return large, bulky and heavy items.

3.

Of all materials recovered, the vast majority came from four or five locations each of which was associated with an employee or ex-employee of i4ECO. There were approxi-mately seventeen residences or businesses that had just one or a few radium objects, mostly clocks. An additional 25 locations in the Beatty vicinity nere identified where other radioactive items were found including contaminated concrete and soil and radium and non-radium related objects.

There were also three locations in Paarump, Nevada and one in Fallon, Nevada where objects were recovered.

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The location with the msst abundant and varied number of items..'as 6 ranch.

Eleven Bennett Buckets, two other tanks, tools, wcod ;rlanks, a'pproximately 10 electric motors, several pumps, pipes, a wood table, hose, and metal framing describes the general scope of items found at this ranch.

5.

An ther location of significant findings was individual

" museum". The " museum" consisted of a private collection of numerous, varied artifacts assembled by M as a personal hobby. Approximately five to

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seven 55 gallon drums of material were recovered from the

" museum".

Items recovered consisted mainly of radium dialed objects although a centrifuge, a laboratory or commercial mixing device, lead bricks and several other assorted items also came from the " museum".

.6.

A third location of significant findings was individual S premises. Miscellaneous radium items, a large con-i taminated tractor tire, tools and a large tool box and another laboratory mixing device were among the items recovered from these premises.

7.

Three instances were identified where actual surface contamination existed within living quarters.

One of these was a point source spot of radium on a carpet which read'110 mrad /hr contact beta /gan=a and 15 uP./hr at one foo t.

The owner of this residence had not been employed by ItEC0. The second instance involved a triple beam balance and a set of brass laboratory weights at indivi-dual S residence.

The beam balance plate indicated 3 x 10' dpm alpha contamination by direct measurement with a portable air proportional alpha survey meter. An open window gm survey indicated 8 x 10" cpm beta /gacra at 3" distance and 1 x 10" cpm, gamma only at the same distance (background negligible).

Laboratory analysis of a swipe of the balance indicated 3.2 x 10" dpm gross alpha with isotopic identification of Pu-239 in a 23/1 ratio with Pu-238 (and/or) Am-241 as well as Cs-137, Cs-134 and Co-60.

Similar iso cpes were found on the brass weights.

Individual used as a non-potaole$also po:sessed a Sennett Bucket water tank.

A radiation survey of the tank and a water sampie eid not indicate the presence of radioactivity.

Indivicual$wasnotassociatedwith 90003141

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.i NECO and acquired the balance and weights in swaps and purchased the Bonnett Bu:Let from a *:ECO employee.

The third i.nstance of cortamination within.living quarters involved individual W A stainicss steel plate, apparently frcm a counter balance type scale, was found. An open window gm survey of the plate indicated 70 mrad beta /garna oncoytact. Laboratory analysis of a swipe indicated 1.3 j

x 10- uCi of Sr-90 with lesser quantities of Cs-137, Cs-134. Eu-155, Eu-154 and Co-60 on the swipe. Trace quantities of Pu-238 and/or Am-241 were also detected.

Individual #was the who had been discharged as a result of the cement truck occurrence.

8.

Many other items were recovered with loose surface con-

~ tamination, :lthough these were found outside, in sheds and other non-living quarters.

For the most part the contamination on these items was identified as radium.

Items recovered with contamination other than radium included a centrifuge with C-14 and co-60 contamination from Individual 4 " museum"; 2 mixing devices with enriched uranium contamination, one from Individual 6

" museum", the other from Individual M residence; a piece of plywood on a shed with enriched uranium contamination, located on rented property, cwner not identified; and a hoist and hoist support with Pu-238 contamination from Individual W ranch.

9.

Additional descriptions of materials recovered, radiation and contaminatien levels involved as well as radioisotope identifications are provided in Attachment F.

Photographs of many recovered items are provided in Attachment E.

10. Of all the contaminated items identified and recovered, the stainless steel plate at Individual $ residence is considered to represent the most direct path for potential human exposure.

The plate had substantial levels of loose surface contamination and was routinely used as a catch for keys and pocket enange.

Handling of the plate or items on the plate could resul; in a direct path of ingestion of radioactive contamini tien.

Notwithstanding, the results of whole body counting on Individual 4 did not disclose any evidence of internally deposited radicactivity.

s Bioassay analysis for Sr-90 was not complete as of the time of this report, but result.s will be included in a later supplement to this repcct.

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.ti With re,spect to the overall potential for radiation exposures, when all fact:rs are considered, i.e., the measured direct radiation levels, the radioisotopes involved, the general le:ation and use of contaminated objects and the low levels of contamination involved, it is believed that no significant internal or external j

exposures occurred.

Results of whole body counts support this contention.

Based on all available infor-i mation, it is concluded that overall, a significant health hazard did not exist.

Results of bioassay analyses are not available as of yet and will be provided in a supplement to this report.

It is not expected that bioassay results will change this conclusion.

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V.

C.

Investicative Effort 1.

During the period of March 11 to April 1,1976, NRC investigation specialists interviewe'd numerous personnel in an attempt to ascertain factual information concerning the unauthorized removal of radioactive materials from the NECO disposal site. These interviews included personnel associated with both the Beatty facility and the Richland, Mashington facility.

Results of investigations at Richland are summarized in paragraph V.H.

Results of the Beatty investigatien are contained herein. The investigation of the Beatty facility included interviews with 21 individuals. The results of each interview are provided below in a chronological sequence. Since a few individuals were Sterviewed two or three times and since many inter-views contain numerous references to other individuals, the key below is provided to aid in rapidly finding the location in the report of any given interv,iew. Signed statements obtained during several interviews are attached to this report as Exhibits 1 through 13.

Key list of Interviews Individual Date of Interview Paracrach No.

51 2

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(first interview) 3/11 3

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'3/12 4

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3/12 5

3/12 6

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3/12 7

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(firstinterview) 3/13 9

3/13 10

,. ?(firstinterview) 3/13 11 3/14 12 3/15 13 3/15 14 3/17 15 3/18 16 3/18 17 3/19 18 3/19 19 (second interview) 3/20 20 3/20 21 (second interview) 3/24 22 (second interview) 3/25 23 (third interview) 3/25 24 3/25 25 4/1 25 90003144

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Interview tiith Individual 8cn March 11, 1976 On Merch 11, 1976, Individua.1 [la: 4nterviewed at the NECO Beatty, !!evada facility bv reoreseeatives of the NRC and the State of Nevada.

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IndividualMadvisedthataCeaseandDesistOrderhad been received from the State of Nevada. All operations had been stopped except that materials enroute to the facility and on hand could be received and buried.

Individual 4 stated that only three employees in addition to himself remained at the site. The other emoloyees had been terminated.or layed off. 6 he had little first-hand knowledge concerning past events. He indicated, however, that until March 9,1976, the only radiation safety concern at the facility had been the use of a cement mixer to pour concrete at some offsite locations. This mixer was used on the site for mixing cement and liquid i

radioactive waste. The mixer was, therefore, contaminated and the concrete slabs for which it had been used in Beatty, Nevada were found to be contaminated.

Individualdindicated that until March 10, 1976, the only problem of which he was aware was the concrete problem.

On that date, however, he was informed that items which had been received at the site for burial had been removed from the site by site persennel and that this apparently was a widespread problem. He stated that he had informed corporate management of that development and he expected corporate level personnel to arrive at the facility within the next 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.

Individual $ indfcated that 4 addition to himself and the facility the only personnel currently ecoloyed at the Beatty site were Individuals ( >.ad d He stated that 4

Individual # had been emoloyed by NECO since 6 i

While Individual a#was familiar with the circumstances I

90003145 l

I

.18 -

-tv relating to the use of the cement mixer in Beatty, he wculd have little, if any, knowi2(ge relating to the removal of containers and some of their contents from the site since all or most of that activity took place prior to his arrival at the Beatty facility.

Individual 8 stated that information relating to former NECO Beatty employees would have to be obtained from the NECO Western Operations Office located in the San Francisco, California area or from the corocrate office in Louisville, Kentucky. A list of for er NECO

- l Beatty employees with their dates of employment and last known address was sucsecuently provided to the NRC and State of Nevada representatives.

3.

Interview With Individual e on March 11. 1976 On March 11, 1.976, Individual 4 was interviewed by represen-tatives of NRC and the State of Nevada.

Individual

-# stated that he has been ' employed by NECO at the Beatty facility since M During most of his employment he had been a but during the last year he has worked as a @ at the facility.

Individual. estated that sometime in 1967, 6 the practice of emptying containers had begun. He indicated that at first containers which were made from pieces of plywood and other lumber were emotied into the trench and the plywood and other lumber were salvaged

^

for a variety of uses by employees, the N i

and their friends. A technique was developed wherecy the crane would be used to suspend plywcod boxes over the trench. The crane coerator would allow the box to free fall several feet and then abruptly stop the cable. This would cause the box to separate and the contents would fall into tne trench leaving the five remaining sices of the box intact a.nd readily salvagable. The contants that drocced into the trench w uld then be covered ever by backfilling.

Individual ndicated that over a pericd of years, large cuantities of plywood were removed from the site for use as construction material for f:nces, sheds, playhouses, trailer skirting, etc. n.d could be found througneut the Beatty area and neighboring ran:hes.

He recalled that seme plywned was given to pecole who lived in Indian Springs, Nevada, a small community about 75 miles southeast of Seatty.

90003146

t

.s Individual 4 stated that largeluantities of hand tools, clocks and compasses were receivec in containers for burial as radioactive wa:te. These conte.iners were onened and employees were allowed to take whr.t tney wanted.

He incica e:

i that' there were occa: ions unen the:e-items were spread ca:

on the building floor and oiven a cuick check with a GM survey meter.

Emoloyees were then permitted to take what they wanted.

In addition to the above itemt, pioes, fittings, cumps, motors, rieging ecuipment, shackles, cable, electrical switchboxes and other miscellaneous items were taken from the site which had been removed from containers of radioactive waste.

Over a period of time, mostly through trial and error, they were able to determine which containers would have desirable items contained in them. This could be determined' in large measure by the location from which they were received. Most of the items were received frcm General Electric Vallecitos and San Jose, California, Atomics International, tiare Island Naval Shipyard, as well as other shipyards and military installations. Another method employed to determine whether a container was to be opened was to roll it over and if it rattled, it was a good indication that the contents wer'e of value.

These containers came to be referred to as " rattlers".

Individual $ stated the containers of radioactive waste received from medical institutions were not of interest.

' Individual $ stated that beginning in about 1967 the Lawrence Radiation Laboratory (LRL) began shipoing radioactive waste in large steel containers known as Bennett tanks.

These tanks were about 7 feet tall and 6 feet in diameter.

These containers were coened, the contents dumced in the trench and backfilled. The empty tanks were then hosed down and checked with a survey instrument.

They were then taken from the site and used for a variety of purposes. Many were used as sectic tanks, water storage tanks for live stock, grain storage, etc. Althougn he said he had no way of knowing how many of these tanks were taken from the facility, Individual 4 said it was his opinion that not very many of them were, buried on the site. He estimated that only 5*, had been' buried as intended. He indicated that Bennett tanks c uld crobably s

be found in the town of Pahrumo and the A arcosa Valley farming area a3 well as in 'est:y and neighboring rancr.es.

knowledge o$ndicated that althout;h he had no perscnal Individual f it, it.as his imoression that sore items,

.particularly Bennet: :anks, had been sold as well as given away. Although all emoloyees had been involved 90003147

t i

in acquiring articl s from radioactive waste shioments, as time went on most of the activity was confined to the He went on to say that several Bennett tanxs anc other equipment had been taken to Individual-#5 ranch and stored and/or used thers.

He was unable to say whether all of it remained there or whether sotre of it was subsequently taken elsewhere.

Individual $ stated that he had no knowledge that any items removed from the site were taken by truck to any distant points.

He further indicated that there was 4

no need to open and use emnty 30 or 55 gallon drums since unused drums of that si:e vere available on the site.

Such drums were only ocened if they were rattiers.

~

Individual (stated that he had some indicatiens but no personal knowledge that radioactive waste containers had also been opened at the f;ECO warehouse located in the Oakland, California area.

( :0TE:

For specific inforra-tion regarding this carticular allegation, see " Interview WithIndividualdonApril1,1976".)

Individual j stated that he had no firsthand knowledge whether any NECO corporata persennel were aware of unat was being done at the Eeatty facility but he was of the opinion that the formerh Individualy, l was aware of the above-described activities.

Indiv1cua Wstated that Indivic'uai4had broucht these activities to the attention of IndividualWseveral years ago.

IndividualVindicated that he had heard that as a result of this action, Individual (,had ordered theh Individuait$ to fire Individual 3 Because Individual y had seniority over most of the other employees, it became necessary for theM to terminate all but two employees in order to terminate Individual p s employment.

This action was taken a month or so after Individual '(had gone to Individual &

Individual e indicated that af ter the site manacer became aware that Individual $had obtained other en51oyment, tne other site emoloyees were rehired. Accordina to Individual

$ Individual d.was rehired about one year aco by the latestsitemanagersinceIndividuals(and(nolonger

~

occupied positions witn NECO.

Individual Individual'9was again terminated recently$ stated that because of his involvement with the couring of concrete with the site cement mixer in the town of Beatty.

He indicated that it was his unders:anding that Incividual'Dwas no longer residing in Eeatty but had mo/ed to t.as 'legas.

(NOTE:

Interviews with Individuals andpare provided later in this report.)

90003148

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l

.x Individua14 was recontacted en March 19, 1976 at which time a signed statencnt was obtained from him, a typed transcript of which i: attached to this report as Exnibit

  1. 1. '

4.

Interview With IndividualIan March 12, 1976 l

Individual dwas ' interviewed on March 12, 1976 while his residence was being surveyed.

IndividualNstated that he had been enployed for about $at the Beatty facility. During the first three years of his employment he had been aW and had therefore spent most of his time away from the facility. More recently, he had been employed at the facility itself.

Individual @ indicated that a few days ago he was notified that he was'being layed off but that his lay off was temporary.

Individual kstated that he had seen Bennett tanks received from LRL opened and the contents taken to the trench.

The tanks were then hosed down with a fire hose and checked with a GM meter. The tanks were removed from the site and used by various people in the area, mostly as septic tanks.

Individual $ stated that he was aware that items were being removed from shipoing containers received at the site. He stated that he did not particicate in this activity since he did not want anything that might have radioactive contamination on it. He was, however, allcwed to take several sheets of new plywood from the Beatty facility.

He indicated this plywcod had been used to i

separate layers of 55 gallon drums shipped from the Shell Chemical Comoany which contained chemical wastes.

Since these had no connection with the radioactive waste portion of the NECO Beatty facility, he knew that they did not have radioactive contamination on them.

Individual S stated ha had no additional first-hand knowledge about activity relating to the removal of tools, equipment and containers from the Beatty facility.

5.

Interview With individual Fon March 12, 1976 A brief intervies was held with Individual Iwhile his residence was being surveyed on "ar:h 12, 1976.

Individual 9 stated that durina the last few months he had been emoloyed as a casual cori.ec at the Seatty facility.

He stated that he worked at the facility on an average of one or two cays a week :uring this period.

He stated 90003149 r

22

-5 that while he had heard from conversations at the facility and in town that m te-i'ai had been taken from the site, he had no first-hand Fne.1194e concerning these activities.

Individual % stated he had nct taken-any toot s or other items from the NECO facility except that he was permitted to take a few sheets of plywood from the chemical side of the site.

6.

Inte' view With Individual 3 on March 12. 1976' r

(

On March 12, 1976, Individual $wasinterviewedbyrepresen-tatives of the NRC and the State of fievada while his residence was being surveyed.

Individual 4 stated that although he has never been emoloyed by !!ECO he had parformad Nvork at the I-:ECO Beatty Facility.

He stated that he had never obtained any materials, ecuicment or tools from that facility which had come from radioactive waste shipments.

He indicated that the only item he had obtained from the facility was an electrical fuse box that had tieen installed within the facility's building.

7.

InterviewWithIndividual4oni.farch 12. 1976 On March 12, 1975, Individual #was interviewed by represen-tatives of the f RC and the State of I!evada.

Individual

$ stated that he had been hired as a by fiECO in November 1973 and that his activities were related to the corporation's He stated that his offices are located in the In ividual stated that he became the Individual $ stated that he had visited the Beatty facility on only one occasion, that being in about September 1974 He stated that his visit there was for a general familiari-zation of the corporation's cocration and his interest was primarily in the financial and administrative areas.

h e went on to say that at the time of this visit, Individual dwas the Mbut.he was absent from the facility during his visit.

Incividual $. who at that time was the facilit; was in 6 g the site curing the aoscnce of Incividual $

Individual

@ stated that during tnis visi; he did not accuire any knowledge concerning :ne egening of radioactive waste cont:16ers er the remcvst of items from the facility by NEC0 parscanel.

90003150

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I

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.,4 Individual Mstated that he first became' aware of any problems at the facility on February 20, 1976 when Individual $ informed him tMt a cor.taminated cement mixer had been used to ecur concrete.in the tewn of Beatty.

It was his uncorstan'cing that Individual W had received a call from Individual % 6

, in this regard.

IndividualI stated that he had' no personal knowledge that radioactive waste containers or portions of their contents were being recoved from the site and that to his knowledge of this or con,doned it t'eing done.no one at the corporate level w Individual $ stated at the conclusion of this interview that signed statements attesting to this fact would be prepared and submittad to the NRC by himself, Individual $ and Individual These statements were subsequently received from NECO and are attached to this report as Exhibits 2, 3 and 4, respectively.

8.

InterviewWithIndividualkonMarch 12, 1976

~

On March 12, 1976, Individual % was interviewed by representatives of the NRC and State of Nevada.

Individual or !E fo h

a of NECO includes the burial site in the n

Richland, Washington area as well as the Beatty site, a warehouse in the San Francisco area, and nonradioactive waste operaticns in the State of Texas.

Individual'$ stated that he was originally hired by the former NECO President, IndividualT, as a M in about June n His 6 activities were restricted to matters.

He subsequently became a full-time emolo ee of "ECO with the title ofW About 18 months ago, HEC reorgani:ec and moved its headquarters to Louisville, Kentucky.

At that time he became th;

ndividual'SstatedthatwnLle Individual.

was the of NECC, Individ'ual V Was personally responsio.e for the Beatty operation at the cor? orate level.

Individual 4 stated that he had no responsibility for "e radioactive wasce activities ~

at Seatty until ne became 90003151 g,,., ese eapse *W'4D

~

.u Individua18 stated that he has visited the Beatty facility about every three or four months since he became associated i

with NECO. Un until " arch of 1975, IndividualWwas

,Ouring-the time W

$y materials haa been taken fr$.was not Individual i

an om the site.

Individual went on to state that he had forced Individual 4to resign for reasons that did not relate to radiation safety problems.

Individual stated that Individual G had been the while In about October 1974, Individual requested a transfer to the NECO facility near Sheffield, Illinois.

Individualiremainedat Sheffield about six months and was transferred back to Beatty whe was ndivicual stated that he had no knowledge t at any materials or containers had been 1

taken from the Beatty site while Individual $was@

l N He further stated that during all of his visits to,the site he saw no indications of this kind of activity going on.. He indicated, however, that heheardrumorsthatIndividual$hadbeensellingmaterials i

from the Seatty facility while he was M there.

Individual stated that he heard these rumors when Individual was fired from the comoany during his i:mplorrent at the IndividualY stated that he received a call from Individual M the Beatty site

~

on February 20, 1976.

Individual p advised during this conversation that he had strong indications that the site cement mixer had been used to pour $ concrete in the town of Beatty and that Individual

, was aware of this activity and had participated in it.

.He further indicated that other employees at the Beatty site were involved in this activity.

Individual $ stated he reported this information to Individual (and proceeded to make arrangements to meet Individual (the following day in Las Vegas.

IndividualIstatedthathemetwithIndividualion February 21. During that meeting Individual Tadvised him that he had noted recently that the sucoly of cement at the site was diminishing.at a race which exceedec the quantity necessary t: sclidify the licuid radioactive waste received at the site. Accor:ing to Individual

$ Individual daent on to say that he had talked to 90003152

.w Individuali, on January 12, 1976 andIndividualIhad admitted using the cement mixer for concrete ucrk in Beatty.

Individuci $ st:ted at that tire that he was doir.:; a favor for a friend.

!ndivid,ual $ indicated that he had obtair.ed scme ccrent dust from the location of the concrete pour and unon checking it found no indication of radioactive material.

Following his meeting with Individual k, Individual

$ then met with Individual $concernina the matter.

l' Duringthisconversation,Individualdadmittedthat the cement mixer had been used at four different locations in the town of Beatty.

The first time the cement mixer was used was at the residence of a NECO employee. According to Individual if, this pour was made before the cement mixer had been used to solidify liquid radioactive waste.

Individual $ stated that IndividualY informed him that the mixer had also been used to pour concrete in the Beatty jail. The local contractor's cement mixer had broken down a'nd he was recuired to comolqte the job without delay. According to Individual to perform the work as a public relation $ he had agreed s c.esture.

Individual $informedIndividual$thatIndividualsM, j and $had assisted in pouring that concrete.

Individual y had stated that he did not receive any payment for this work but that the local contractor had donated

'some money for the NECO Christmas Fund.

Individual

$ stated that'he was not familiar with any Christmas Fund but that it was apparently intended to be used for refreshments obtained for a Christmas party for employees.

Individual %statedthatthethirdoccasionthecement mixer was used was to pour a patio behind the Sourdough Saloon in downtown Seatty.

Individual stated that Individual $ informed him that-the owner of the saloon had 5450 due him from "ECO.

Individual $statedthat he was not clear as-to why NECO ewed the salcen owner this amount of money.

Individual *$, hcwever, contended that the salcon owner agreed to cancel this' debt if NECO would pour the patio.

A fourth occasion involved the residence of a friend of NECO employees, Iraivicuo!s t and $.

Individual

) stated that Indivicual $ denied receiving any money for these concrete ::crs.

Individual 4 stated that in view of the above information, he informed Individual

& that he would suscend him from his position until the matter was resolvec. He vient on to say that !ndividual J,was officially sus; ended on 6

~

90003153

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I

.N Individual)statedthatonFebruary23henotified the State of flevada of the activities involving the site cen,ent mixer. Or " arch 2, Individual Macccmpanied a State of levada reprc entativo during surveys of the concrete locations in the town of Deatty.

Individual gstated that spots of contamination in the patio behind o

the Sourdough Saloon were found which read up to 40 mrad /hr at the surface.

He stated that the concrete was removed frcm this location on March 4 and 5,.1976 and the material was returned to the site for eventual i.

hurial.

9.

Interview With Individual 9 on Mdch 13, 1976 On March 13, 1976 representatives of tha NRC and the State of Nevada interviewed Individua who stated that he had been employed as a and subsequently at the NE 5eatty facility since Individual 8 stated that at. the time he began his emoloyment at the Beatty facility, the practice of opening containers and removing materials from the site was in

  • full swing.

He corroborated information obtained earlier concerning the methods used to salvage the plywood used in the construction of waste centainers wn ch were received on the site and the identification of containers having useful items and indicated that the latter were referred to as rattlers.

Individual $ stated that Individua%6 controlled these activities.

He stated that Indivicual $ supervised the opening of boxes and that containers could not be opened without his approval.

oftoolswe$confirmedthatonoccasionlargecuantities Individual re received in 55 gallon drums and these were opened and seresa on the floor of the facility.

They were checked cuickly with a Gli survey meter and those that shewed high radiation readings were thrown in the trench, He incicated there were a sufficient number of tools available to be selective about those they did noi. vury.

He indic.*:ed the tools were taken out of the c ntainer :n wnich they ' tere received and placed in t:ECO container: and stored in a loft area at the facility. Gradually, emolcyaes helped themselve:

from those containers until they were gone.

90003154

I Individual $ stated that a larde number of boxes containing clocks and compasses had been received from various military installatiens.

These were received frequently with indicaticns that they hac been opened enroute.

He indicated tnat this was evident because the lids on boxes were renaileo and there were band marks on the boxes but the bands were gone. He indicated shipments of this kind were received through common carrier frcm various military installations. Some of these shipments had been temporarily stored at the NECO warehouse facilities in the San Francisco area before being brought to Beatty by NECO truck.

Individual) stated that the Bennett tanks received from LRL contained common trash and absorbent material.

While some of the materials contained in the Bennett tanks were enclosed in plastic bags, other materials were placed in the Bennett tanks which were not contained

'in plastic or other smaller containers He stated that the lids were taken off of the Bennett tanks and the contents dumped into the trench. The tanks were then hosed down with a fire hose and checked with a survey meter. He expressed the opinion that they were not checked for alpha activity but were checked'only with a GM survey meter. Af ter the tanks were considered free of contamination, several of them were lined on the inside with tar ar.d some welding was done on them to make them readily usable as septic tanks.

He indicated these activities took place on site. He indicated that Individual 4 had personally engaged in the conversion of Bennett tanks into sectic tanks.

He excrossed the further opinion that durino the time that Individual few;ifany,Bennetttanktwere buried in the trenenes en the Beatty site.

He indicated that these tanks, as well as other material obtained from waste containers, were taken by truck to Individual $ ranch or were delivered to other residences in the Beatty area.

He stated that he was not aware of any occasions in which *.!ECO trucks were used to transport salvaged materials to any distant points. He indicated that if any of the emoloyees or townspeople wanted a Bennett tank for their use it was necessary to ask Individual

$jorpar.

for it He indicated that scme amoloyees scent the ma t vi their time reemring materials from containers for use and in the refurbishing of Bennett tanks for use as septic tanks or f:,r other purposes.

~

90003155 h

M

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Individual 8 stated that aboutlhree years ago the f!ECO I

employees at the Beatty facility filed comolaints with 0511A through their un'en about various working conditions at tije site. Among :Pete c:molaints was one relating to the drinking water providej to them.

They were concerned because the water system utilized 1-1/2 Bennett tanks.

He indicated the system had since been remodeled and the Bennett tanks were no longer u:ed for this purpose.

(NOTE: NRC Follow-up of this item disclosed that the complaint had actually been filed with the fievada Industrial Commission. Department of Industrial Safety. A representative !

of this agency obtained two water samples from the tank which were analyzed for racioactivity by the Clark County Health Department. Results were negative. f!ECO exchanged the tank shortly thereafter.)

Individuad also provided other information concerning other items which had been taken from containers received at the site. He indicated that the centrifuge which had been recovered frem his property had been received several years ago at the site and had remained on the site for a long time. He indicated that he had had it in his possession for three or four years. He could not recall from which facility it had come. He stated that the beam balance which bad ceen recovered from g

the residence of Individual Whad been removed from the site by him anc that he had given it to Individual

$ He could not recall the origin of that item either.

Individuali stated a load of 6-inch diameter cipe had been picked up by ?!ECO truck at Rifle, Colorado, which had been used in Project Rulison. He said that all of the pipe went directly to the ranch cf a former MECO employee instead of being taken to the Beatty site.

He indica.ted that he and the individual, who at that time was a ?!ECO employee, personally delivered the pipe to that individual's ranch.

Individual biso stated that a metal A-Frame on rollers with a chain fall had been received from ICit in the San Francisco area. He indicated that this piece of equipment was used in the shco at the Beatty site.

He further stated that 3 white building had been received

=

at the site for burial.

It wi.s his recollection that it had been received from a mi*itary installation in Sundance, Wycming in about June 1903. He indicated that this white build'ng was utilized at the !!ECO facility rather than being buried.

It was nis further recollection l'

that another similar structure was taken to the Beatty residence of Individual %

90003156 e

-_.,_______-_m.______

- 1

.N Individual $ stated that several large motors of 8' to 12 horsepower, which had been raceived for burial, were remoud frc:- the si %

nd..are taken ;o Individual S Individual dwe:nt on 'to say that a few years ranch.

ago he had removed a lathe that had been received for burial at the Beatty site.

He had subseouently found out that the lathe was contaminated with beryllium rather than radioactive material.

Since he understood that beryllium was hazardous, M decided to return it to i

the Beatty site. At the time he decided to return the l

lathe, Individual % was no longer the M and he felt it was necessary 'or hin to return the lathe surreptitiously.

In order to do so, he dismantled the lathe and took it back to the facility in small pieces.

He indicated this was acc:mplished over about a two year period. He observed that it was more difficult to return the lathe than it was to acquire it in the first place.

IndividualDa' Iso stated that a Bridgecort milling machine had been received at the site several years ago and remained there for a long ceriod of time. He indicated i

that he would like to have had it and asked Individual kwhetherhecouldhaveit.

Individual'$askedhim what he would be willing to cay for it.

He indicated that he could not afford to buv the machine and it was p'ut up for sale by Individual 4 Individual $ stated l

that it was his understanding that *ndividual $,made a phone call to the corporate offices and got aoproval to sell the machine to Individual 4 who coerates a p

@ in Pahrump, "evada, in abcut 1972.

(NOTE:

Incividual l

q was interviewed on March 20,1976.)

prior to Individual $. I had been th q Individual stated that Individual involved in an accident onsite and was absent fo(r a Individual was 1

orolonged ceriod of time.

Because of his absence, Individual l

was brought to Beatty as the6 Individual indicated that he did not believe that containers were being(ocened and itams beino taken offsite whenwas i

Individual recovered from his injury and returned to the site after

{

Individual j beameM, he was anazed at what was j

going on. A short time later, Individual'4 was transferred to the facilitics in the Marea.

Individual indicatec :nat about four years ago Incividual.

  • $ visited the Beatty #3cility. During that visit he and Individual g took Individual 3 in an airplane to 90003157

I J

5 i

show him where the Bennett tanks were located around the Beatty area He stated that he was of the coinion that Individualkhad made some attemots to cut a stoo to the activities '..hich took cla:e.:hile Individual 6.

! e sas,I.eever! accarently unsuccessful.

  • ~

He indicated tnat Individual is no longer with i;ECO.

Individual 8 stated that IndividualM q1d Individual

$were good friends before Individual S became M at the Seatty site. He indicated that during a conversation withIndividualy,hewastoldthatIndividual$had stated to Indivicual $ that what happens to material after it arrives at the Beatty site is no one's business but fiEC0's.

Individual $ stated that Individual (visited the Beatty site occasionally, but he could ot state from personal knowledge whether Individual was aware

.of, condoned, or participated in the above-described activities.

He indicated, however, that it was his opinion that Individual 4 was at least generally knowledgeable of what was going on.

Individual $ stated that he was aware that about four or five years ago Individua)(had gone to Individual

( and held discussions with him. While he did not have first-hand knowledce as to what.the discussions involved, it was his underst5ndinc that Individual $ brought to Individual W attention the activities that were taking place at the Beatty site.

Individual Q

he had heard that Individuai4had in$ stated that structed Individual

$ to @ Individual % after this discussion had taken

(

place.

Individua14 stated that all employees with s

less senf erity than Individual 4 were layed off a short Individual *(also $ had held discussions w time after Individual' was layed off.

Individual (d worked for fiECO at the stated that Individual 4 left the facility an facility in early 6 He indicated that Incividual

$was subsecuently fired by the Chairman of the Board of flECO.

Individual 4 stated that Individual %became at P.eatty following the decarture of Individual.

g, he claaned house and out the materials @eing Individual 4 stated that wnen Individual 4 becam b

stored at the site irto the trench for burial. He indicated l

that he could not recall.riy Bennett tanks being emotied whileIndividual$wassite.'ianager. He indicated, however, that there might nave been scme emoty Bennett 90003158

i

-5 tanks on hand when IndividualYarrived.' Some of those already empty micht have been remo af ter Individual % cec a eg.ved from the siteIndividual y expr the opinion that sc.ie :ninqs. continued to be taken off the site but without Incividual recalk, however, that there was$ knowledge He did one large stack of lumber being stored at the site and Individual % stated that if anyone wanted it, it wculd have to be removed from the facility that night becaus'e a Government inspector was coming the next day.

t Individual $ stated that a short t4me after Individual

$became Na man came to his office asking whether he had any more tanks to se@ll.

According to Individual 4 this upset Individua ecause this indicated to him that Bennett tanks had been sold in the past instead of being buried.

Individual $ stated that there was little security control exercised at ttie site.

The cate was scretimes left open overnight and en weekends.

It seemed as though everyone who ever worked at the site, even casual yard workers, had keys to the gate's lock.

Individual stated that during the time that Individual containers received at 'the site were not opened and very little, if any, materials were removed from the site.

Me indicated, bewever, a Bennett tank was buried on the site for use while Individua1 Y was 6.as a septic tank Individual *$went on to say that the only unauthorized activity in wnich IndividualV became invcived was the use of the cement mixer for pouring concrete in seme locations in the town of Beatty.

He stated that this did not seem to be too unusual because it had been an unwritten comeany policy for site equipment to be made available for use in assisting area residents in a time of need.

He recalled that the crane had been used to replace the steccle on a church in Beatty fclicwing a stonn.

Earth moving and grading ecuicment had been used to recair, roads and driveways follcwing heavy rains.

These thinos were done with GECO ecuipment in the interest of good public relations in the Beatty area.

Interview With Individ=1 hn '4rch 12.1976 10.

On March 13, 1976, a resident of o hrumo, Nevada, who a

requested that some itrs 3: his residence be checked, was interviewed by recresentatives of the NRC and the 90003159

. I 1

-N State of Nevada.

Individualktatedthathehadbeen employed as a h at the ::ECO Peatty facility for about,three or four renths during ti:e surmer of M He indicated that '.;hile he was an cr51oyec. Indivicual Awas Mand Individua14 was the M M

Individual 4 stated that the only item from the !!ECO facility he had in his possession was a socket wrench set.

He indicated, hcwever, that he had also acquired a boat compass and a lensatic compass from the military prior to this employment.

the NECO fa(ility for about a year and a half inD Individual advised that individual ( had worked at c

S He indicated it was his understandino that Individual f was included in the N iioue for a shcrt time and acquired several items from centainers which had been received from the site for burial. He stated i

that Individual #' currently operates a maintenance and repair shop in Fallon, Nevada and probably has several items still in his possession.

(fl0TE:

Individual $,

was interviewed on March 17,1976,l Individual $ also stated that Cridgeport m'illing machine received at the NECO facility had been sold to Individual 4 who operates a M in Pahrumn, tievada. He further indicated tnat he nad heard that a vertical press may have been ourchased by the Pahrumo, Nevada.

(fiOTE:

A representative of tr.e State of Nevada pursued the latter item during a visit to Pahruep on l' arch 18, 1976 and informed the :RC that the firm had not acquired any items from the fECO facility.)

(NOTE:

Individua y was interviewed on two occasions, March 13 and l' arch 24 The first of these in arviews follows.

Individual $ presently resides in 6 and is no longer employed by ::ECO.)

11.

InterviewWithIndividualion" arch 13. 1976 Individual M wife was'present during the interview and assisted him in providing names of ::ECO emoloyees s

during this employment.:erind.

Incividuali stated that he was acc'oyed by lECO from

@ M to /oril Wto January W he was the W at Beatty, June He also stated that frem June Nevada.

Individual 8 stated nat in January W he was transferred to the site as the 900031A0

Mand was replaced by Individual O who was the previous h at Individual 4 stated that he was tne for the g site 'until April 4dElP ahon no tarr.onated his employment.

)

Individuali$'statedthatduringtheperiodthathewas the following individuals were i

, employ'ed at the site:

Individual Mechanic Mechanic Individual

' Individual Yard Boss Individual Truck Driver Individual Truck Driver & Concrete Individual Truck Driver

' Individual Truck Driver Individual Truck Driver.

Individual Concrete Work Radiation Monitor (Sprinn to summer Individual of $

Individual Radiation Monitor which arriv$ stated that some large nlywood' waste boxes Individual ed from San Jose, California were opened.

He stated that the curcose of opening the boxes was to remove the plywood lids for other use.

Individual

'$t. stated that the waste was enclosed in plastic'inside the box, and lids were removed prior to placing boxes in the trench.

He stated that the boxes were placed on top of each other with a box covering the other box where the lid was removed. He stated that only the lids were removed from the boxes. He also stated that all of the removed plywood was surveyed for release from the site and given to the employees.

Individual

$ stated that he used seme himself to build a small horse stable and some was used for other purposes by almost all of the employees.

Individual ]l stated that other material cculd have been removed from the boxes by employees but that he was not aware that anything was removed except the lids, s

He stated that he was aware that scme "Eennett" cans were removed frem the site with his concurrence.

He described these as re md me al wasta containers abcut 6 feet in diameter and ~ feet in height with a metal lid. He also stated tnat t.tese were received frem Cerkeley, California and that waste inside of tne containers was enclosed in plastic.

9000L3161 1

1 34

-5 Individual 8statedthatIndividual$hadreouest t

to use, as he remembered, four of these containers to fabricate a small sil: for containing bulk cc : cat.

i He aho stated that Irdividua!5ccerated a co business on his own in additica to working for MECO Individual M stated that the waste from the containers was removed and the plastic containers plac in the trench.

for release prior to being removed from the site 1

j

$ stated that he believed this was done during e i

Individual 1972.

Individual yard concre$ also stated that Individual (owned a 3/4-te mixer on a trailer that was used on the site.

that the mixer was surveyed and released

$ to remove from the site.

ual IndividualTalso stated at the Beatty site.that the mixer had not been used for 4

He also stated that Individual

$ owned a boom truck that was use the site on each occasion.

j M 6f Deatty, operated aIndividual i also stated tha business in Seatty.

performed He stated that Indivicual had prior to leaving the site. site but that the equicment w tork at the burial the Beatty site for solidification of wa this mixer was never removed from the site.

from Alameda, California and that the co been stored outside.

wooden and cardboard c:ntainers were o broken open on arrival.

He stated that most of the shipment consistad of radium dial clocks used by the Navy.

He stated that he did not remove the 'cle:ks b felt that scme of the workers may have taken ene of them.

He stated that he was not a.;are of any emoloyee actually rem: vino any of the ciceks but just had a feel that it may have nan:2ned, but could not explain the reason for the opinion.

90003162

~

t

i IndividualkstatedthatNECOemployees'referredto some drums roccived from'the Mare Island Naval Yard as "ratticrs".

He s:c.ted that this meant there was icose material in the drums ;uch as metal tools or other metal' objects.

He also ststcd that to his knowledge none of these drums were opened.

Individual *kstatedthatroutinelytherewasashortaae of vehicle tires, tarpaulins, and small tools but could not say that they were stolen. He also stated that they may have been misplaced on site, buried, or placed in other vehicles.

Individual 1 stated that each employee had a key to the site gate and were allowed to use the site shop for their own use on weekends. He also stated that they were instructed to survey items brought to the site, prior to their removal, after work on them was compl eted.

He stated that the site equipment was used off the site for employees and community project work. He stated that this was done as a public and emoloyee, relations matter and that all ecuipment was surveyed prior to removal from the site.

Individual d stated several times that to his knowledge the only items removed from the site that'were delivered for burial were the "Eennett" containers and the plywood.

Individual b wife stated that she could not provide any additional information regarding the activities conducted at the Beatty site.

12.

Interview with Individual D on March 14. 1976 On March 14,1976 Individual $wasinterviewedathis ranch by recresentatives of NRC and State of Nevada.

Individual Ystated that he was employed by MECO as a @ from W until February or March M He

'indicatedthataltnoughIndividual4wa when he began his emoioyrent, Individual wa 6 during most of his ecoloyment.

dividual$

became M(stated tnat the comoany sponsored a retirement abouc a year before he retired.

=

Individual party for him' and Indivicual $ who was at that time, called n1m rNm.iawaii to express his regret at not being abic to attend the party and extending his best wishes to hi.n.

900031A3

~

i

- 36 :-

-W Individuali stated that Individualitried to be a good fellcw and scr-i s: rec 1c to have things from the si te tha t. hey ':;r.;.

.c !!so arranged for the o

use of some ::CCO site ;cui; ment in town when it was needed. He cited as examples, the use of the crane to place the steeple back on a church that had blown down during a storm and the use of graders and earth moving equipment to repair roads. He indicated this was informal company policy to perfarn these services

(

as a means of establishing anc maintaining good relations with the community.

IndividualYconfirmed that items found on his ranch had come from the f:ECO site.

He stated that to his knowledge no items fron the MECO site were taken to California or other distant points, that is beyond the Amargosa Valley and Pahrump, Nevada. He indicated some Bennett tanks '. vere procably now located in the Amargosa Valley and that one was installed as a septic Lnk at Individual 4 residence in,Pahrump.

Individual'$ stated that he was not personally involved in the decontanination of the Bennett tanks but said that after they were waphed out, they were checked with a meter of scme scr: before he hauled then away.

He stated that the inside of some tanks were lined with.

tar and scme welding was done on them at the fiECO site.

Individual Istated that he had about 12 Sennett tanks on his ranch.

He had an informal understanding with Individual 4 when he was 6 that half of the Bennett tanks were his and half were Individual $

NOTE: On March 11, 1976, a State of Nevada representative advised the ::RC that he had seen a cancelled checkinpossessionofIndividual(Thecheck, relating to the purchese of a Sennett tank.

dated October 23, 1972, was mace out to Individual 4for $100 and bore the notation that it was for one 6' x 7' tank.

Individual $ had declined to pe-mit the State of ::evada representative to make a copy of it.

Individuali stated that he had nothing to do with the sale of Bennett. tanks and that to his knowledge only one tank was sold.

He indicated that if any money was obtained for rennett t:nks, Individual got it.

4egarding the check for 1100 ma e cut to him for a 6' x 7' tank inthepossessionof.ndividual%:ndividua stated 90003164 mome ee e en.

sman,, e m.

}

he received no money from Bennett tanks but had no explanation as to why the check was made out to him except that Individual $mayhaveowedhimsomemoneyatthattime.

Individuali stated that whi]c !ndividuali and other site personnel were aware of and particicated in the removal of items frca the site which were intended for burial, he was of the opinion that Individual ( was not aware of it.

Individuallstatedthateveryoneseemedtohavekeys i

to the lock on the facility gate, employees, ex-employees, and even others in Seatty. He said the lock was changed occasionally but that was not very effective.

He went on to say that sometimes the gate was not locked at night or on weekends.

He recalled that on occasion he had arrived at the site from a trip in the middle of the night and found the gate open. He said the building on. the site could not be locked because there were some entrances without doors.

He explained that the door to the office was locked with a ecmbinati'on lock and that only the ' site manager and drivers were given the combina tion. He recalled, however, that the combination was written on the wall near the door because he and others had difficulty remembering it.

In view of the lack of security at the site, he was of the opinion that some things 9,ere taken from the site by people other than UECO employees.

13.

Inter'viewWithIndividualkonMarch 15. 1976 Individual $statedhehadbeen e

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,.. - ~. m; 7 -

.r s

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. n,.. n....: -., -.., ;. ~..., _ ;

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4.

a r ' ge

. * *

  • ct. ; p p.

Individual k said that in his position 6 he had spent most of his time in the Walnut Creek heaccuarters, but that he had often visited the Beatty site.

Individual d stated that in all his time 6 and on all his visits to the Beatty fccility, it had never core to his attention tnat -here nad beer any diversion or any "surplusing" of matar%1 delivered to the site for disposal -- or any use of the site ecuipment off site.

90003165

=

s.

l

.N i l As to equipment carried off the site, he said there was a fairly high incidence of hand tools being carried off. He said it sce=r.d he was always having to buy new crescent wrencncs.

He nid that,in 1963, Gill Horten of tl:e t'evada Stat 3 Ecelth Co;1rtmcnt asked him about a report that some alectric motors had been sold off site.

IndividualinadcheckedwithIndividualf(who had been M from 6 and Individual 4 had informed Indivicual Mhat the report was unfounded --

that no motors had been sold.

Individual 4statedhe knew of no other instances of this nature. He said he had heard rumors about the recent disclosures of items of contaminated ecutement being "surplused" from the site. He said he was distressed to hear this because he had had a proprietary pride in the facility and its i

position as a showpiece model for the industry.

14 Interview With Individuallon March 15. 1976 Individual $ stated he had been'thegfor fluclear j

Engineerine of the Beatty, llevada disposat site from re a au i al Individual ( left the site in after he had been severely injured in an accident when he was operating a crane at tha site. After his recovery from injuries Individual work in M for iluclear Engineer $ had cone back to ing at the 6 6 office and left the company in December M During the time that he was at the Beatty site, Individual 4hadasmanyastenemployeesemployedthereatone time. They were all frem the local area and to his knowledge none of them ever removed anything fr m the site.

Individual estated he was acutely aware of the contaminated nature of the materials put in the trenches, and he would never have permitted anything to have been removed.

Since he was a local resident in Deatty and knew all the local residents, he felt sure that no surplused equipment had been used by those residents for stock waterina trcuchs, etc. during his stay.

On one occasion one of employees asked him for permissien to take a large piece of plywocd hcme to place on a t:ble so that he could have a large dinner party.

Individual

-$ told this inn /idual (whos: r.eme he could not remember) that this was strictly forbidden ar.d that he, Individual 4 would buy him a sheet of plywooc if he needed it that badly.

90003iA6

~

l i

i

~

~M-On occasion local residents had' asked Individua1Y if they could borrow the cat bulldozer) which was used at the site, but Individuai had turned them down.

On one occasion at thu recuest of the Beatty Fire Department, Individual 4 had driven the cr:re off site and used it to lift the bell off of the bell tower at the fire station.

j IndividuaMstated that he did not understand how it could be stated that the crane had been used to drop

'l plywood boxes and stop them snort of the ground so that their bottoms could fall out, dumning the contents in the trench and permitting the plywcod sides and toos to be salvaged.

He said that while he was there the boxes were moved only by forklift and they were set down at the periphery in the trench to form a wall around it. The crane was used only for the large coner '

blocks that came from LRL and for very large boxes.

He said the "Bennett buckets" were also placed in the trench with the forklift.

Individualhasusingthecranetoliftaverylarge box into the trench when he had the accident that resulted in his leaving Ceatty.

The box conta ned a' sodium tank from the Hallam reactor.

Individua1Yhad the crane's boom, fully extended, trying to placa the box in the center of the trench so there would be a lesser chance of it ever coming into centact with water. The weight was too much and it overbalanced the crane, causing it to tip into the trench from the top of the bank.

Individuali had no recollection of the recort of electric motors being sold (as referred to by Individual ().

He stated he had had no contact with Bill Horton, Supervisor of Radiological Health, State of Nevada, except for licensing catters while at San Ramon. He reiterated that to the best of his knowledge nothing was ever taken from or sold from the site.

15.

Interview With Individual hon March 17, 1976 IndividualI stated that the dates of his eEoloyment at the Beatty, Nevada discosal site were from about s

March @ to July M (as indicated from the i:ECO records). rie scic that he bL expe:ted to be contacted by someone concerning nis e..oloyment there and the things that he had taken from there since ne had heard about the activity of this nature going on at Beatty.

He volunteered that he had possessicn of a number of items 90003167

. l

j w

he had taken from the Beatty site, and showed them to the investigators.

He voluntarily brought to the shop a brass-ct.:ed Hamilton clock with itminous numerals (reportedly forreely U.S. Arny issue), from his hc. e.

He stated he had been given this in Beatty, before he had gone to work at the cito, by h's m Individual

@, who worked there.

Individualf said that his 6 had another clock just like it and that both clocks (he understood) had come from the discosal sita. Other items which were in the shop which Individual identified i

as things he had personally oicked up out of the contaminated waste containers and taken from the disocsal site were some drill bits mixed in with other drill bits in a box, two handles for cipe thread dyes, four or five pipe threading taps (for diameters about 1" to 1-1/4") -

(these had purple paint markings on them), and a small box of open-end wrenches.

IndividualIalso produced from a shelf in the shop's storeroom two folded yellow tarpaulins and an olive drab wooden box containing a surveycr's transit. He said that these had been given to him by Individual Y

Inregardtothetransit,IndividualNstatedhehad had plans to do some building and he had asked Individual i several times if he could have the transit and Individual 3 had finally said to co ahead and take it at the time he left.

Individual (said that he had not used the transit and this was partly because he did not feel right about it since it appeared to be government issue.

He said he had chipped "U.S." off of the top of the l

box and he showed the investigator the word " survey" still on the box.

Prior to Individualicoing to work for flEC0, Individual

  • $ and' Individual 4 had given him scme lumber and sheets

~

of plywood from which Individual (had constructed scme outbuildings on his procerty on a corner of Firs Street in Beatty. He said that his son-in-law had told him that these' buildings had recently been torn down because of the recent concern about tnings being removed from the !!ECO premises.

-During most of the timo that he worEed at the Seattv site, Individual $ was W cnd Individual 4 was the W Just before :ndividual d lef t thecompany,Indivicual$hadtakenover.

and Individual $went to the site.

90003"

e Y

~

- 41 i

Individual % said that when Individualiwas theM he would not let anything be taken fec= the site.

While Individual ( was at Co.:*y, the employees were allowed to take things from the site as long.as they had Individual

$ permission.

Individual ( said he believed Individual Wwould have fired anyone who took something without his permission.

i As shipments came in, Individual 1 would check the boxes '

to see if they were high level (radiation) and if not, Individual b ould have the workmen open the boxes and sort out the contents.

The high radiation level boxes were dumped in the trench.

Individual $ did not know what the threshhold was.

There was no restriction placed on the workmen about what they wanted to take out.

The boxes chosen by Individual 4 to be opened would be set on the edge of the trench and opened and the contents spread out on the bank of the trench for everybody would generally survey items for the wor @kmen and he to pick out what he wanted.

Individual was supposed to check the olywood.

Individual W said this survey was not strictly adhered to - ard scmetimes workmen would survey items on their cun or take them out without survey.

Individual I remembired only one occasion when "Bennett buckets" came in on a shipment. There were eight or nine of them and they were put in the walls of the trench.

He had no knowledge of any being made into septic tanks or sold.

He had no recollection of any pipe having been left at the ranch of Individual $ enroute frem Project Rulison.

In addition to the items waste boxes, Individual *(he had reclaimed from the contaminat

,had in his storeroem a 2' x 2' x 2' carten containing several pairs of coveralls which he had taken from the site.

These were new -

or hardly worn, and were not the tyce of white coveralls used at nuclear installations and disposed of it centaminatsd.

These were either yellcw cr macenta coicred and made similar to a flight-suit coverall.

Individual $ said they were used by the "ECO workman.

In a later check of his residence three other coveralls of this type and a drum full of than were a;so pointed out.

It is estimated that acproximctely two or three dozen coveralls are involved.

(There.cs no evider.ce of them being contaminated.)

90003169

\\

I

~

I

-W AsignedstatementwasobtainedfromIndividuall,a typed transcript of which is attached to this report as Exhibit #5.

16.

Interview with Individua1'W en March 18. 1976 On March 18, 1976, Individual $wasinterviewedbyrepresen-tatives of f!RC and the State of f!evada.

Individual htated that he was initially emolo ed by NECO as the e became at that facility and was suosecuently transferred to the Beatty facility 6 in Januarv He indicated he left that position on March IndividualhstatedthatuponhisarrivalattheBeatty facility, he initiated action to clean up the site.

He said there was a large number of items, including large machinery, situated above-ground along the fenceline which should have been buried. The facility shcp area was also cluttered up with a variety of junk. He recalled that, for example, there were about 16 electrical switch or junction boxes 1ccated in the shco area. ' All of these items were placed in the trench and buried.

Individual

'$further recalled that there were about six Bennett tanks in the trench when he arrived and these were buried.

He stated that he did not have a Bennett tank at his residence in his septic system.

Individual hstated that h'e did not recall the occasion when he reportedly told emoloyees that if they wanted a stack of plywood, it would have to be removed that day because an inspector was due to arrive at the facility the following day.

Individual $ recalled that a short time after he b 6 a man came to his office and asked if he had a 300 gallon or larger tank available and wanted to put in an order for tne next tank that came into the facility.

Individual k however, expressed the opinion that it could not necessarily be concluded frcm anything the man said that Bennett tanks had been sold

=

or given away before he 6 Individuah stated t.at thtrt was prevalent at the t

NECO Beatty facility.

Ha stated that when he came to the facility, everyone had keys to the lock on the gate.

He changed tne lock but items continued to disa:cear.

He said several NECD-cwned hand tools and a portable 90003170

-5 generator were taken from the site. He stated he provided a list of missing items to the Deputy Sheriff stationed in Beatty but no items: were recovered.

Individualisaidhesawevidencetha'tscmecontainers intended for burial ware npened and their contents removed from the site while he was M He indicated that he reca'lled seeing unopened containers in the trench i

on a Friday afternoon and when he arrived at the site the following !<enday, the containers were empt)

He

+'

stated he had seven or eicht employees at this t.'me and he could not determine who was responsible for taking things frem the site. He indicated he talked to the i

employees three or four times in an effort to stop these activities.

He said he had also heard stories abcut things being taken from the site before he W but he had no personal Knowledce of it. He said he did not report any of these things to anyone because he didn't want any trouble. He said that he did not know whether i;ECO corporate management had any knowledge i

concerning the~ removal of items from the site except that on one occasion he received a telcohone inquiry from Individual Y abou a motor beina taken offsite.

He advised Individual he knew nothincj about the matter.

IndividualOstatedheallowedsemef!ECOequipmentto be used offsite. The crane had been used to replace a church steeple.

Excavation work was cerformed for the burial of some gasoline storage tanks and some land was graded using i!ECO-cwned ecuipment. He stated the equipment was surveyed for contamination before it was allowed to be taken frem the site and that these activities were consistent with MECO policy.

Individual 4ststed he did not sell or give anything away that was contaminated and received for burial at the Beatty facility.

He stated that he did not witness or condone such activities.

Individua$ refused to furnish a signed statement regarding any of the matters covered during this interview.

17.

Interview With Individu?.N en " arch 12, 1976 On March 18,1976, IncivMualiwasinterviewedbyrepresen-tatives of the NRC anc the State of fievada.

Indivicual stated that he was initially emoloyed in February at tne Beatty facilicy.

90003171 l

l

-5 I

In October 1974 he trar.sferred to o te

a He re
urned te the 02a:.y f aiility in arch He left that positien on Individual M correborated the information previously obtained regarding the use of the ccment mixer to poisr concrete in the town of Beatty.

IndividualI stated that during his' first employment at the Beatty facility, all employees had keys to the site and there was no control over the site during non-working hours.

While he was-at the 8 catty facility, he stated he did not see any Bennett tanks oper,ed and stated he did not see any tanks leave.the site.

He said the only use of the tanks of which he was aware was that one was emptied during the Summer of 1975 and used as a scotic tank on the NECO site. He indicated the or*ginal contents of that tank were contained in plastic bag:. These were put into the trench and backfilled.

Individualisaid he did not actually see other radioactive waste containers opened at the Beatty site. He acknowledged, however, that plywcod containers were taken in the trench and he saw the emp'ioyees bring plywood back from the trench. Some of this plywood was used for varicus purposes on the site. Some plywood also disappeared from the site but he did not see it brin removed. These activities took place while he was th at the site.

IndividualYalsosaidhehadscantoolsusedatthe site which had purple caint on them and he knew they had come from naval shipyards.

He said he did not have personal knowledge of tools being taken offsite.

Individual 4 stated that there was some ecuipment such as a welding machine, a grinder and a hydraulic press located in the Beatty facility shop area when he came there to work. He said Individual $ advised him that this ecuipment had come frem shi;ments brought to the site.

Individual T also stated that he nad heard that some items had been taken to Individual S ranch but he had no cersonal knowledge to that effect.

He went cn to say that three or four years ago he heard that some Bennett tanks were sold and that a piece of equipment had been sold to 90003172

.1 45 5

Individualk He indicated, however, that he 'did not have personal knowledge in this ar:a. He said while he was 6 he recei.ved requests for Bennett

' tanks and the people indicated to him that Bennett tanks had been sold before his employment at the site.

1 When he was 6 some people who were not employees indicated to him that creviousW had prcmised t

them a Bennett tank.

They also asked for the plywood all'such requests $ however, stated that he refused box.

Individual He stated he had, however, given away some wooden pallets and sheets of plywood which had no connection with radicactive waste shipments.

o The materials were received at the site with shipments of chemical wastes.

Individuai$ stated that he did not bring these rumors or the things he observed to the attention of corporate management, the State of f!ovada or the Atcmic Energy Commission.$hadtobea$expressedtheopinionthat Individual Individual ware of conditions at the Beatty l

site and the rumors of items being removed from the site. He indicated that from the corporate level Individual personally supervised the operation of that facility.

He expressed the opinien that neither current corporate management nor Individual &were aware of these matters.

~

AsignedstatementwasobtainedfromIndividualT,a typed tran, script of which is attached to this report as Exhibit li6.

18.

InterviewWithIndividua1IonMarch 19, 1976 On March 19, 1976 NRC and State of Nevada re6resentatives interviewed Individual $1n the presence of Individual

& Individuai$ stated that he was amployed by MECO at the Beatty facility from June Y to about December S He stated that althcugh he was hired as a 6 and worked in that capacity for a few months, he spent most of his emoleyment as a6 He was again erployed at the Beatty facility as a 6 from May W to February M IndividualN said that during his first employment he saw and participatad in the ocening of plywood boxes containing radioactive waste.

The contents of these containers were emotied into the burial trench to salvage the plywood.

The olymod was taken from the site by

.l employees.

He said that while he did not have fir:t-hand knowledte of it, he believes that some plywocd was sold.

90003173

-b IndividualTstatedthattha practice of ocening ::lywced boxes and other containers to obtain tools and other desirable items was a ucemon practice when he started working at the site and had apcarently been going on for some time. He indicated that the plywood and other items were checked with a GM survey meter.

It was his recollection that 3 mr/hr was an informal generally applied limit used to decide whether to keep an item or bury it. There were occasiens, however, when some items showing higher readings were kept and efforts were undertaken to decontaminate them. He said no other checks were made and expressed the coinien that there was no alpha detection eouipment available at the site at~that time.

(f;0TE: i:RC inspection reports covering this period indicate that operable, calibrated alpha detection instruments were available at the site.)

Individual $corroboratedtheinformationpreviously obtained regarding the tools being spread out and encloyees being invited to take whatever they wanted.

Individual 4 also stated that Bannett tanks were ocened, cleaned up and t3 ken off site. He stated he had seen a semi-trailer truck loaded with all kinds of' things leave the site dest llqed fer Individual 4 ranch.

While he could hot provide any specific instances or first-hand knowledge in this area, he said Individuals M and$ worked togetner salvaging items and subsequently selling them.

Individualhalso stated that several boxes of coveralls were received at the Beatty facility frem the ' tare Island Shipyard. A supply of these were sent by Individual (to the NECO facilities in Richland, Washington and Morehead, Kentucky for the use of itECO employees at those sites.

Individual $ stated that during his first period of employment, licuid radioactive waste was picked up at customer's facilities, scecifically Atomics International, LRL and a military facility located in Sundance, Wycming and possibly others.

A 2500 gallon, used procane tank was utili:ed for this curpose. He stated that the tank was taken to the trench upon arrival at the Seatty site and the plug was removed to allow the licuid to drain into the trench.

He said he had cersonally pulled the plug on one or more occasions. He stated this was the only means of discosing of liquic rn.dioactive waste until the solidificatien facility was installed at Beatty 90003174

47 I

n in the Spring of'1975. He advised that there was a cement mixer that had been on:i c for several years that did not work when he arrive: cni was never put

~

into working order. He stated that prior to being rehired by NECO, he was engaged by them to ocur the concreto pad and to perform other activities related to the installation of the radioactive waste solidification facility.

This work was completed before he began his second period of employment in May n He stated that corporate managementinthepersonofIndividual$hadtobeaware that liquid radioactive waste was being dumped into the trench withcut being solidified because he was aware liquid waste was being brought to the site and that there was no means to solidify it.

Regarding Individual h knowledge of the other activities taking place on the site during his first period of employment, Individual 4 stated that he had informad Individual (personallyofthesematters.

Individual

$ stated that Individual T was a family friend of his and he became concerned about him. He was aware that Individual $ respected Individua4 and Individual 4 felt that Individual $would be responsive to him.

For that reason, during a trip to the San Francisco area in about August 1969, he called the t!ECO cffices and arranged to meet with Individual 4 When he expressed his concern about Individual % welfare in view of Fe activities going on at the Beatty site, Individual asked him for specific information concerning these activities Individual h tated that he then informed Individua1M that containers of radioactive waste were being opened and their contents were being taken offsite.

He also informed him that plywood salvaged frem wood j

containers as well as Bennett tanks were being taken from the Beatty facility.

Individuald stated that several days after this meeting, Individualj came to the Beatty facility.

Individuals M and &,left the site together and came back.a few hours ater.

IndividualTleft the site later in the day without any discussion of these matters with him or

=

the other employees.

Incividual*$:coknoactionand conditions remained uncnanged.

IndividualTstated that not long after Individua1Y visit to the site he began to hear rumors that he was going to lose his jeb at NECD.

In abou Decemoer of 90003175

48 I

-Si Wall but two emoloyect were layed off. The two that remained were the oniv t.

seniority than Individt.al F.';o cmployees having more Individual $ctated tnat he obtained another joo in Las Vegas and spreaa the word in Beatty that he would not go back to flECO if he was called back fro, the layoff. A short time later all o.f the employees, including himself, were called back to work by f:ECO.

Inc1/idual% said that he declined to return.

Individual 4 stated that he heard that Individual V had instructed Indivicua4to ter:ninate his employment '

because he had gone to Individual) and that this was the only way it could be acccmplished because of his seniority.

He indicated he believed that to be the case.

He went on to say that he was rehired by Incividual (in Wand that at that time Individual f was no longer the flEC0 6 He indicated, however, that Individual 14 still had scro relationshio with f;ECO and had visited the Beatty fc.cility during his second emoloyment.

He indicated he was informed that IndividualY was upset when he became aware that Individual'$was again working for llECO.

A signed statement was obtained from Individua P (,, a typed transcript of which is attached to this report as Exhibit #7.

It was subsequently noted that the termination date of Individual p first emoioyment shosen in the signed statement was inconsistent with other information provided by Individuali during the interview.

Duri g the telephone conversation on April 9,1976, Individual

'ndicated that he was uncertain of the correct date but that the April 6 date shown in the statement was probably incorrect.

19.

Interview With Individua M en Parch 19.'1976 During the March 19, 1976 interview with Individual 4 Individuab$ provided the following information to s

the IGC and State of t;evada recresentatives.

Individual'$ stated that @ had been employed by tlECO at the Beatty facility from March Wto late February

@ Individua$tated that racioactive waste containers were apparently being cpened and items being removed 90003176 l

l

l e i 49

/

-5 from them at the !!ECO warchcuse facility in the San Francisco area. 6 indicated it.nsh impre:sion that this was a common practice at tiTat facility and that some items removed from these containers hdd been sent to Individualiat the Beatty facility by Individual

( who was employed at the warehouse. W indicated pas personally aware of one occasion which took place a few months ago in which a radium c'ock was sent c'

byIndividualhtoIndividuabd

'l 20.

SecondInterviewWithIndividual8onMarch 20, 1976 On March 20, 1976, IndividualYwascontactedtoobtain a signed statement concerning the information he had provided during an earlier interview. At of the statement obtained from Individuali_yped transcript at this time is attached to this report as Exhibit #B.

During that meeting, Individual 4 confirmed the fact that he.had received a racium clock from Individual

$who ts employed at the l:ECO warehouse in the San Francisco area.

Individual $ stated that this was the only item hehadreceivedfremIndividual4whichhadcomefrom a shipment of radioactive waste intended for burial by i;ECO.

Individualdstated that he was aware that some containers coming to the San Francisco warehouse were cardboard boxes containing clocks and other instruments.

He indicated that these boxes sometimes have cracks in them which permit individuals to see what is contained in them.

He also indicatec that these boxes scmetimes get wet and tear so that their contents beccme visible. He stated that he did not kncu to what extent containers were opened and articles removed at the San Francisco facility.

21.

Interview Mith Individual 4 on March 20, 1976 On M Individual'$who operates a 6

$ arch 20,1976,in Pahrump,tievada was interviewed by a s

Individualistated that a few years ago he had a casual meetingwithIndividuaPMfinarestaurantinPahrumo.

During their conversation, Individual'$ informed him that a milling machine was available at the ?!ECO Eeatty facility and tnat if Indivicual1was interested in buying it, he snould contact Individual 4 Individual 90003177

Ysaid that he went to the Beatty facility and made

$ made two tciernone ca(lls c ::.necre in Califor an offer to !ndividual lie recalled that Ir.dividual and obtained accroval.o r.cl' tne mi?linn macnico for the amount he haa offered.

IndividualMrecalled that the machine was checked with two radiation detection instruments before it was loaced onto his truck.

Individuallidentified a Gridgeport milling machine situated in his machine shop as the unit he purchased from fiECO. While surveys and wipes were being made of the milling machine by an EPA representative, it was noted that the serial number on the head of the machine was f;o. J35492.

(.':nTE : Surveys of the milling machine did not reveal any contamination.)

Individuali produced a checkbook record of the purchase which. indicated that by check i!o. 3809 he had paid fluclear Engineerina $500 for a Bridgeport milling machine.

Individual $ subsequently furnished a xerox copy of check fio. 3809 dated January 3,1972.

The check was made out to "t!uclear Engineering" for $500 and bears the notation " Bridgeport f!illing Macnine !/47434."

22.

Second Interview With Individual'4 en March 2a. 1976 IndividualYstated that he had been emoloyed by i!uclear Enineering Ccmaany as the pat Beatty from June Sto January M@In sanuary W he was transfer-red to theNite where ne was the M until April 6 when he left the company.

He stated that in January M he had exchsnged jobs

- th the at Individual

! Indivicual<y stated tnat while he was at the Seatty site, he was given a free hand by Individual

, the 6 to do whatever he could do to mai (ntain good relations with the people of the town of Beatty.

Individualkstated that this included his using the equipment; namely, the bulldo:er and backhoe.to do some -

grading in the town of Beatty for various municical projects.

He stated that on occasien he had made trades of material that had been delivered to the site for disposal.

He had made trades of this equiement for things that were needed an the site.

For example, he stated that Indivicualiwho worked for him had negotiated a trade.of four of the Eennett tanks in exchange for 90003178

. -N a 1500 gallon watar ta:k.

He stated that Gannett tanks were from Berkeley, and he knew from'their origin that they would not have contained any sericus contamination j

such as plutonium. He stated that the contents of these Bennett tanks were dumoed in the trench. The tanks

-l were surveyed, washed clean, before they were traded and before they were used as septic tanks.

Individualfstatedthatheneededaseptictankand made one out of a Bennett tank for himself. He stated that it was possible that other employees of his wculd have taken these tanks for a similar purpose.

He stated, however, that he had never sold these tanks to outsiders and had never developed a process of converting them into septic tanks for sale.

In regard to the equipment which carre and which was salvageable, he stated that it was the policy that the company had first choice for use of the items at the site and the reasoning behind this was that when the material was placed on the truck it, at that point, became the crocerty of Muclear Engir;eering C0moany.

Concerning the question as to whether the material to b

J disposed of should be retained in a centainer, Individual g stated that it was debatable since, according to one definition'the trench in which the material was placed could be considered the container.

He stated that as to the circumstances of so-called

" rattlers", this referred to shipments from Mare Island Naval Shipyard in barrels which would rattle. He stated his drivers had gotten word that Mare Island was cleaning out the tool cribs and tool shops and it was these sorts of packages that were ooened to see if there were any salvageable tools. He stated that it turned out that about two barrels out of a truck load would have seme tools which could be used.

For the most part he stated that items larger than hand tools were put into drums only after they had been cut up with a torch and useless.

=

He stated that this cleaning out of the tool crib at Mare Island t00k a shcrt time and involved no mcre than two loads from that 1ccation.

(On one occasion the Mare Island shionent included 25 brand new MSA full-far masks which were surveyed and used at Seatty.)

Concerning oice that had been recovered from Project Rulison in Colorado and shipped to the site, he stated 90003179

.i

.N that Individual %was the cr ver or that true.k which contained the pipe and he had no i.e.dedge of any of that pipe being dropped off at Indivicual W r?nch.

Individua stated that his drivers were Individuals b and Concerning radium dial clocks, chronographs, etc., Indi-vidual Dstated that these had come in in a 23-foot trailer load, that they had just been loaded into the trailer with a frontloader, that not all the clocks were in boxes and they they did have radium dials, and they comprised a two or three year accumulatien of boxes of clocks which were being disoosed of by the Navy.

He said quite often those that were in boxes, the boxes weren't sealed and he got a number of these from the Army wherein clocks were shipped in wooden boxes.

He stated that these were supposed to be held for inspection i

by an Army inscector who had told Individual $ to save everything ccming in frem an Army shipment for six months.

These were shipped frem the Edgewood Arsenal.

Individual 4 recalled that when the Army inspector arrived that he would open boxes and find that there was nothing in them indicating the clocks had been removed prior to shipment.

Concerningthedisposalofsolutions,Individua1Tstated that they would try to solidify the material if it were high level and then bury it as a solid. He said this liquid would ccme in 15-gallon barrels which were enclosed in a 55-gallon barrel as a double container.

Individual 4 stated that he does not recall the threshhold at which a decision was made to solidify or duno the liquid directly into the trench.

He stated that the flush licuids and resins from Mare Island were dumped directly into the trenches.

He stated that with an alkali sand there was a tendency for the licuid to solidify richt away anyway and he said there were no oroblems since it was 400 feet to the water table at Beatty.

Individual kstated that Individual $ was always making deals with various facilities for discosal of their materials.

He stated that Individual 4 had made a deal with Individua1 M of International Chemical Muclear.

This was for a one-cime final cleanup of the old U.S.

Nuclear site at Burbank wherein it was agreed that one trailer load of waste materials would be disoosed of free of charge in exchange for one trailer load of " clean" 90003180

~

.~

~

stuff from the U.S. fluclear site. This " clean" trailer load con:isted of a driil press, a.. elder, a s-all forklif t and a milling nachine.

It was vl.:ined to them tha t although these units had come frem th'is contaminated facility, that these items had not been iq the shop, but were in the fenced yard.

Individual V stated that he had made a trip to Surbank and had personally seen these in the fenced yard outside the facility. He stated the forklift had later been sent tc the California warehouse

'I of Nuclear Engineering, tne weider had been sent to the Kentucky site, and the drill press had been used at Beatty. He stated that the Bridgeport milling ma' chine had been sold for $500 to a man in Pahrump, Nevada, to an individual whose name he could not recall who had worked at the test site in Nevada.

Individual 1 stated that on another occasion in one of his deals, IndividualVhad agreed to dispose of a 9' x 24' x 9' metal tub from Mare Island which had a very low contamination of 2 mr/hr at the bottom o' the tub.

Individual I had given Mare Island a good price on this disposal because the tub was filled half full of folded yellow tarpaulins which were being disposed of and were not contaminated.

Individual $ knew that these tarps were clean and consequently had given the Navy a special price on this.

In regard to the tarps, again Individual $ stated that the company's needs care first and that if the persons who worked for him needed the~se tarps for some project or other they could be taken.

In regard to the information' that Individual khad received a $100 check from Individual %in payment for a Sennett tank and that Individua1 W corrrent had been perhaos Individual et had owed him some money, Individual W stated that he and Individual Me had traded a durrp truck for$had made some swaps.

a horse trailer and that it could have been that Individual but that he did not recall the $did owe him some money, circumstances.

Individual 5 stated that from the information one could 'not assume that the money received from the tank had been intended forIndividuali.

Individual M volunteered that 5100 was too cheap a price for the tank, that a sectic tank of that size in concrete would cost icout $750 anc the price of the Bennett tanks rare aporopriately would have been $450-5500.

He would not, however, state that any tanks had been sold at that price.

90003181

i On another occasion, Individuaih had made a deal at

~

Mare Island wherein the ::avy disposed of 5,000 pair of new coveralls in thei. oricinal boxes and in serarate sizes and in two colors, racenta and yellow.

He stated that for the crost cart they were unu:id and t".ey were not at all contaminated, but they had been sent to the Beatty site by the Navy in a truck on which a radioactive placard had been hung in order to dispose of them.

When these were received at the site, Individual W stated that he stored them in a shed which was full of them -

there were approximately 150 to 200 pairs in a box.

He had subsecuently sent some of these coveralls around to all the different sites for use as fluclear Engineering coveralls.

In regard to plywood, Individual'8 stated that often the boxes arriving at the site would be coming apart on their own.

When olaced on the edge of the trench they Would fall apart. He stated that for example when San Jose was being torn down, they knew that there was only a low uranium contamination involved and the boxes from tha.t shicment were saved and the wood was used for various projects.

Individual W stated that where this material could be of some use to his employees on a special project they were allcwed to use it.

He stated that Individual 4 told him when he first arrived at Beatty that he needn't worry about his constructing a stable for his horses since he was free to use the lumber and plywood that was stored at the Beatty site which had been taken from the various boxes that had come in for disposal.

A signed statement was obtained from Individual *8, a typed transcript of which is attached to this report as Exhibit #9.

23.

Second Interview With Individual Y en March 25. 1976 On March 25, 1976 fGC representatives interviewed Individual W During this interview, Individual (corroborated the information provided by Individual (concerning the dumping of licuid radioactive waste into the burial trench at the Beatty facility. He stated that from the beginninc of his e 31oymant in June % until the Spring cf W, the Sea:ty facility had no means of solidifying liquid radioactive waste received at the facility.

He said there had been a cement mixer on the site which was apparently intended to be used for 90003182 l

-5 this purpose and some piping had been rigged up to make it appear that a solidification sy cm was ocorational.

The mixer, hcwever, was never in ocorating condition to his knowledge.

IndividualIstated that a 2600 gallon tank was used by NECO to pick uo ifcuid radioactive waste from various customers. When the leaded tank arrived onsite it was taken to the trench and the liquid was drained from t

it.

IndividualYstatedthatinhisopinioncorporatemanagement, specifically Individual 4, had to be aware that liquid radioactive waste was being disposed of in this manner.

A statement in this recard was obtained from Individual

$, a typed transcript of which is attached to this report as Exhibit #10.

At the conclusion of this interview, Individual ) also advised. that during a vis1t to the NECO Richland, Washington facility about five years ago, he participated in the dumping of unsolifified liquid radioactive waste received from Jersey Nuclear into a burial trench at that facility.

(NOTE:

Follcw-up of this allegation at the Richland facility disclosed that the disposal occurred under the jurisdiction of the State of Washington license and with the prior knowledge and approval of the State.)

24.

Third Interview With Individua1 T on March 25. 1976 On March 25, 1976, Individual $wasinterviewedbyan NRC representative. During this interview, Individual corrqborated the information provided by Individuals and g concerning the handling of radioactive waste at the Beatty facility orier to the installation of an operating liquid radioactive waste solidification system in the Spring of 1975. A signed statement in this regard was obtained from Individual 1$, a typed transcript of which is attached o tnis report as Exhibit fil.

(NOTE: On April 12, 1975 a letter was received from Individual $ arending his March 25 signed statement.

A typed transcript of this letter is attached to this report as Exhibit #12.)

90003183 G

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25.

InterviewWithIndividus.14cn w rch 75. 1976 On March 25, 1976, Individual' b as interviewed by an NRC representative.

Individual $ stated that he has been the at the Beatty facility since Maren He said that during that time, no liquid radioactive waste was disposed of in the burial i

trench without first being solidified.

He confirmed that the current waste solidification facility was installed during the Spring of 1975 and its first use, according to his log, occurred on "ay 6,1975. On that occasion, 800 callons of liquid waste were processed.

Individual

$ stated that at the time the solidification facility was put into use, there were approximately 23,000 gallons of liquid waste contained in liquid storage tanks awaiting processing.

26.

Interview With Individual i en Acril 1. 1976 Individual $ stated that he had been edoyed continuously by Nuclear Engineerino Comoany since -

except for a short period in when he left the cc: canv to serve with the

.~.L--..~~.-

Concerning the matter of clocks with radioactive dials that had been received at this facility, he stated there had been a truckload of clocks which were packaged in large cardboard boxes shipped frem the Oakland f:aval Supply Center which had been received at the NECO warah' use o

facility about three or four years ago.

He estimated that about a dozen clecks had been removed from the trailer before the rest of the shipment was sent on to Beatty for disposal. He stated that similar clocks were on hand at the time the facility was at M when he started work there and that from time to time, someone would call cown to the facility from the main office in Walnut Creek and ask him to clean uc some clocks and send them uo to the Walnut Creek office.

He stated that he knows tr.is occurred on at least three or four occasions and that three or four clocks were involved in each case. He assumes that these clocks were given to friends or for rewards.

He believes that most of this cccurred during the time that the warehcuse facility was at Dublin and curing the time that Indivicual p was the @

Individualpstatedthattheclocks 90003184

1

. I

..s

/

were later moved to the San ".amon warehouse and had been stored in the overnead vorage area. He said that very recently, perhap; three, fcui, five or six conths

$go, he had gone down to Beatty briefly and Individual a

at the Beatty facility had asked him if he had gotten any clocks out of that shipment.

Individual g stated that.he had and Individual $ asked if he could have one sent down to him since Individual $ indicated that most of those delivg ed to the Beatty racility had been buried.

Indiviual Wstated that when he got back to the San Ramon facility, he found the last remaining clock and had cleaned it up and sent it down to Individual ittdshipping it down on one of the waste loads.Individual sae that he had taken one of the clocks for himself and had mounted it in the floorboard of a pickup truck that he had owned. He stated that he had subsequently sold.the truck to a person whose name he could not remember, who lived in the Hayward-Castro Valley area. He had intended to remove the clock before the vehicle was sold, but had neglected to do so.

(The license number and description of the truck was given to the State Inspector for followuo.)

. Individual d stated that all truck drivers making pickups of waste caterial in less than c:rload lots from facilities in Caifornia and in the northwest were supposed to stoo in at the California warehouse facility prior to traveling to Beatty, Nevada, for disposal.

Individua stated this was for the purpose of adding to the load waste material collected at the warehouse facility.

Sometimes, however, the truck drivers would bypass the warehouse facility and drive straight on through to Seatty.

Individual

$ stated this annoyed Individua % when he was the 6 ht Dublin because it did not permit him to make his selection from the items which were being sent to Seatty for disposal.

Individual 4 stated that it was standard practice for there shioments to be examined as they came into the warehouse facilit < to determine what, if anything, might be salvageab'io.

Individual 4 stated that he remembered a whole loac of Herculite yellow tarpaulins that the Navy said wsre the wrong color and which were being shieted frem Mare Island.

Individual

  • $ had learned from Incividual 4 at Mar-Island, that 3

these tarps were being dis:osec of

. had instructed the driver to stoo at Dublin er.rcu '

.3 Seatty.

Hcwever, the truck driver went straight on :nrough and the Dublin facility wLs act aole to obtain tarcs frcm that snipment.

Individual 4 complained to the Beatty site manager who 90003185

~

. l 58

-5 subsequently sent some :arps back to Individual k but they were old discarded taros that had been previously used at the Beatty facility.,

\\

Concerning the matter of tools, Individual pstated that he and Individual,3 would look for too,s on inecming shipments.

IndividualW stated that he never took any for his personal use, but that they were taken out of the waste barrels for use at the Dublin facility.

Individual

$ stated that the barrels coming in from Mare Island i

would have the words "Scrao !!etal" on the tops and he i

said that the Navy monitors would tell the truck drivers

)

that there were lots of tools in those barrels and would indicate to the truck drivers that they had already had their pick. When these barrels would come through the Dublin facility, he and Individual would lay plastic out on the floor, open the barrels and(cump the tools out to sort through and take out everything they needed.

Individual $ stated that every tool that had come from the Mare Is and facility had the lettn s "CTR" inscribed on it which stood for Central Tool Room. Also, they were painted with magenta paint. He said that Individual ad Individual d and another employee, Individual clean these t'cols uo usino paint remover.

Individual stated this was not so much for decontamination precedure as to remove the magenta paint, because Navy inspectors would subsequently come through the facility and Individual

$did not want them to recogni:e any tools by their paint markings.

Individual $ stated that he.had known for five or six years back that things from the waste shioments were being used down at Beatty and that Individual 4 had known that Individual 4 had been using comoany equioment on company time for outside projects.

Individual 4 stated that it was his cpinion that Individual $ had not said anything to NEC0 manager.cnt about what had gone on at Beatty because they would only think that

.he was attemptino to cet his job back at Beatty and replace Individual $.' When Individual $left the Dublin facility he, at that time, told Individual'$to take all. the tools that were marked CTR and everything else that was illegal and ciscose of th n in the next waste load going to Beatty.

Individuai stated that Incividuai 4 indicated that it was okay for these to have been taken from the waste shipments and to be used for as 90003186

59 -

-tu long as he (Individual %4h was there, but he didn't want to leave the place with any of this material still arcund.

1 Individual ihmstated thit Ocnnett adis were never taken off the shipments that came through the warehouse facility, l

principally because they were too big. They weighed i

four to five thousand :ounds and their equipment couldn't handle this type of item.

{

Concerningshipmentsofsolutions,Individualj[ stated that resin tanks which were made in Antioch were delivered to Mare Island by the NECO drivers. He stated the resin slurries would be placed in these tanks and the water pumped out of them so there would be less than If. water in the tanks.

Then, these catch tanks would be placed inside 82 casks. The entire cask would be shioped to Beatty and each cask would contait approximately 7-1/2 i

cubic feet of resin.

Individual 1 had no knowledge of any resins having been disposed of directly into trenches at Beatty or elsewhere. He also stated he had no knowledge of any arrangements Individual *(P had made for an exchange of ecuipment from the U.S. Nuclear facility in Burbank in return for disposal of contaminated material.

Individual NLcould not identify which forklift might have come from U.S. Nuclear. He stated that the oldest forklift on the place, which he did not recall where l

it had come from, was the Buda which had been there in 1967.

It had been,recently completely refinished with all the paint stripped off and repainted.

(A survey of this forklift did not detect any contamination.

Two other forklifts in the facility admittedl were contaminated and had come from other sources.

AsignedstatementwasobtainedfrcmIndividualllka typed transcript of which is attached to this repor*

as Exhibit #13.

s 90003187 O

e D denW* *--

_. JMP w7,-.,,,,w.

.m-_

_.aw a

j

, S V.

D.

Bennett Buckets As ' iscussed in Section III, 6ne of tee types of itegs l.

d removed from the NECO site was a large (about 200 ft"),

l cylindrical steel shipping container referred to as a Bennett Bucket (8.8.).

These containers were, and still are, used by LLL and LSL to ship radioactive waste for disposal. Records indicate that contents of B.B.'s generally consisted of a wide variety of noncomoressibles varying from animal carcasses to filters to sewer pipes to gloveboxes to parachutes.

Radioisotepes varied, but the presence of special nuclear materials was not uncoccon.

Generally items within B.B.'s were bagged or sealed to contain contamination but the potential for the B.S. itself becoming contaminated is real. Notwithstanding the fact that the company's license prohibited the opening cf these containers and recuired them to be disposed of by burial in soil within six months from the date of receipt, it was stated by Individual 4 thac.the usual practice was to re-move the contents from a B.S., wash it out with a hose, possibly it would be surveyed and then it was considered available for offsite use.

Individuals)andTstated that B.B.'s were cocconly used offsite as septic tanks, although other uses were likely.

2.

During the course of surveying Beatty and vicinity, 22 1/2 B.B.'s were located. Their uses included: one for septic tank, one for nonpotable water source at a family residence (Individual % residence), one for at a family residence (Individual % potable water source residence),four welded together as a storage silo at a cement plant, several for animal grain storage, several as water storace for aniral use and several just lying around not in use.

It was also noted that NECO road signs located one mile on either side of the facility entrance were made from S.S. lids.

Serial numbers were legible on five of the located S.S. 's.

Re-view of LBL and LLL records disclosed that these carticular B.B.'s were shipped for disposal on 11/2/69,,1/28/70, 11/4/70, 6/7/71 and 5/15/72. Although it is net known what happened to the contents of these B.B.'s, it is obvious

=

that the containers were not buried within the requirec six-month period.

3.

Surveys (except the septic tank) on all the B.B.'s showed no evidence of contamination. Water samples from the two B.B.'s used for home water supoly were analy ed for gam a radioactivity, tritium and plutonium.

Both samoles were negative for each type analysis.

In one instance, soil adjacent to a B.B. found at a local mine indicated the 90003188 w

I

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presence of some radioactivity. The,B.B. was lying on its side and two small spots *about one' foot frem the open edge of the B.B. indicated 350 uR/hr and 50 uR/hr, respectively.

Soil samples taken at those spots indicated the presence of Sb-125 at a cencentration of 4.6 x 10 "

uCi/gm and lesser concentrations of Co-60, Cr-51, Ag-110M and Ag-108M.

The B.B. itself df d not show any Evidence of contamination.

Individualsidfand that IndividuaQ lwashupwards to 95% of theIhave 4.

B.B.'s received were never buried. LLL and L8L records indicate that approximately 141 B.3.'s would have been shipped during this time frame. Considering a 955 distri-butich factor and allowing for the B.G.'s already located, approximately 111 B.B. 's rem.ain unaccounted for.

In an effort to locate and survey (where possible) these S.S.'s, NRC IE:V issued on March 30, 1976, 1500 postal patron ad-dressed letters (Attachment D) covering the geographical areas which could reasonably be affected. The letters contained an exolanatien with a questionnaire and postage paid, return addressed envelopes. Results of this effort will be the subject of a later supplement to this report.

90003189 9

k 4

4 r

I

.e, 62 -

V.

E.

Liouid Waste Handlina, practices at Coattv F..cility 1.

Condition 17 of License fIo. 04-3766-01 incorporates the licensee's procedures and soecifies conditions for oro-cessing ano disposal of radicactive waste rece.ived in liquid form.

Large cuantities of low level licuid wastes have been transported to the Beatty site in a llECO tanker

! l truck authorized by a Special Department of Transportation permit.

The license requires t!!at these liquids be solidified using Fortland Cement and other materials prior to burial.

2.

During the course of the overall investigative effort, Individual 1 disclosed that in the past, liquid wastes re-ceived at the Beatty facility were disposed of directly into the burial trench without solidification. During followup investigation of this particular matter, emoloyees

%nd R and former employees 1 and"'$made signed statements to the effect that during the period 1966 to 1975 the solid-ificatien system was not ocerable, and liquid waste from the tanker was released directly to the burial trench with-out solidification as recuired by the license. Cocies of those statements are included as Exnibits 11, 10, 9 and 7, respectively, to this recort.

Exhibit 12 is a letter re-ceived from Individual $ amending his statement in Exhibit 11 3.

Examination of records of liquid waste received by NECO at Beatty revealed the following:

90003190

, -5 Calendar Gallons Total Principal Year Received Activity r;Ci Isotoces

' 1966 27,700 1178 Mixed Fission Products (MFP) 1967 11,800 175 MFP t

1968 20,900 84 MFP 1969 13,100 734 Sr-90, Co-60, C-14, H-3, Cs-137, P-32 MFP 1970 5,200 94 MFP 1971 2,400 600 Co-60, Cs-137, Mn-54 1972 3,300 694.

H-3 1973 No Record of Receiots for 1973 were reviewed.

However, HECO management stated that a few thousand gallons were received.

1974 13,565 233 H-3, Co-58, Co-SO, Mn-54 1975 100,296 17625 H-3, Co-58, Co-60, Mn-54, Cs-137, Cr-51 4.

License No. 04-3766-01 also authorizes transportation and solidification of liquid waste received in 00T accroved double wall containers surrounded by absorbent material.

However, Condition 12 limits burial of packages to those containing only solid materials and limits opening and solidification of liquids received in packages to those which do not exceed a radioactive concentration of 10" microcuries per milliliter.

Indivi.cual 3 sta.ted that in

~

some cases packages of liouid waste received in double wall containers surrounded by absorbent were ooened and liquid s

was dumped directly into the trench, and in scme cases the liquid was solidified.

In addition, Individuals $and 9 stated to the insocctors that nor-ally these double wall packages containing liauid were placed in the trench as received, without solidificaticn or other precessing.

9000319;

  • 14.

5.

Examination of records of liouid waste received by flECO at Bes tty revocicd tha t n'.-ercu: thi: cr:ts of thi: type wer?

received eacn year.

E;urales.cf typical shipments of this type are as follows:

Date Gallons Total Activity Principal Received Received mci Isotooes 7-22-66 19 4.83 grams U-235 2-23-66 10 8

C-14 3-29-67 4

11 P-32, H-3, C-14 12-11-67 1

15 H-3 6-19-68 9

82.6 P-32 H-3, C-14 8-8-68 57 "Neglig,1bl e" U-235 3-17-69 60 1306 C-14, I-131 P-32, I-125, Cr-51, Fe-59 10-29-70 10

'8 C-14 H-3 12-29-70 5

.011.

U-235 7-28-71 5

4.68 curies H-3 7-22-72 330 3.5 curies H-3 5-9-73 30 1212 H-3, C-14 5-29-75 36 161.5 H-3, C-14, I-125, P-32, fla-22, Cd-36, Ca-45 7-8-75 72 56.8 H-3, C-14, 'I-125, Na-22,' P-32, Cr-51 s

l 90003192

~

' I

-W V.

F.

Environmental Samolina 1.

During a February 1975 in:pection at Seatty regarding the possible nigratien of raciunuclides from the site, vegetation and soil samples were collected and transmitted to the Health and Safety Laboratory (HSL), Idaho Operations Office, ERCA.

In conjunction with this special round of inspections, the soil and vegetation saoles were not analyzed. On March 9, HSL was requested to de gamma analysis of these vegetation 4

and soil samples. On March 10, HSL provided the results of analyses of three /egetation samples and two soil samples.

Two vegetation sanoles both on the south side of the site showed indication of radionuclides other than thogobservd71n fallout and other than fallout levels of Co and Cs. As a result of these analyses, HSL was

. requested to perform transuranic analyses of all the positive vegetation and soil samples.

In addition, they were requested to analyze soil and vegetation sanples which were collected in ilovamber 1974.

Inspectors at the site were also recuested to obtain additional soil and vegetation samples in the area adjacent' to the burial site and at controlled locations.

i 2.

The results of these mea:urements indicate that there is some radionuclide activi'ty above background levels that is attributable to site coerations. This activity apoears to be limited to the southern perimeter of the radioactive waste burial site.

Samoles from the other three sides of the site in general contain only those levels of radionuclides that can be attributable to fallout. The concentration of activity above fallout is low and of no public health significance, particularly since there is no pathway to humans. The results apcear to indicate that the envirenmental activity is not recent since consistent levels were detected in the 1974 samples.

There is also a pattern of decreasing activity going away frca the site in the dominant wind direction which is also consistent with the cenclusion that the activity is due to burial site acerations.

Further environmental samples will not be taken at this time since the results indicate that there is 'no public health problem.

s 90003193 e

j T

- 66

\\

V.

G. '

Whole Bodv and Bicassav Analv<es

1.. A total of eight indivi:uc.ls,-ere identified by the !!RC for whole body counting and bicassay sampling. The individuals i

were selected on the basis of the highest probability of internal exposure due to the possession of contaminated articles or the use of 3.B.'s for octable and nonpotable water supplies.

In addition, the State of Nevada identified a number of present and former f!ECO employees for whom evaluation of internal deoosition was desirable. The analyses were performed by the Environmental Monitoring and Support Laboratory (EM&SL), US EPA, Las Vegas, Nevada. The Ef1&SL has engaged in the evaluation of residents from communities and ranches surrounding the test site for a number of years in support of test site activities. Selected families and ' individuals from these localities have been examined on a continuing basis.

Three of the eight individuals identified by ?!RC for evaluation were former or current participants in the tast s,ite evaluation program.

2.

Whole body coun s were performed using two systems the first of which is a single sodium fodide,11 inch diameter by 4 inch thick, crystal, coupled to seven photomultiplier tubes.

The detector output is suoplied to 200 channels of a 400 channel TMC analyzer. This system has a sensitivity for cesium-137 of approximately five picocuries per kilogram.

1 This system can identify approximately one nanocurie of most gamma emitters.

3 Data provided by EPA for the eight individuals identified by NRC and saven individuals identified by the State are reported below:

137 40 (om/Kc)

Individual Cs(oCi/Kc)

X NRC 25.2 1.52 Group 6.2 1.67 14.8 1.34 7.8 1.0S 8.0 1.59 20.1 1.42 23.2 2.03

<5 1.76 State 14.0 1.70 Group 31.9 1.39 17.9 1.46 11.34 1.41 45 1.71

6. 6 1.62 12.4 1.69 90003194

- 67

-5

~

137 4.

The EPA, EM&SL reported that the norral range for Cs is in the range of <5 - 50 ot i/Ka uith an average of aoproximately 20 pCi/Kg.

"o other gc.:.na em1;tcing nuclides were identifies.

5.

The second system, for plutonium-239 screening, uses a cesium iodide-sodium iodide phoswich (each segment is 1 inch by 3 inches in diameter) coupled to a single photomultiplier.

The signal is supplied to 200 channels of the 400 channel TMC analyzer. The detector is held in the arrpit and one count is made on each side of the chest. The phoswich is used for screening foa cioassay since EMLSL has no method for evaluating and correcting for chest wall thickness and has not established the sensitivity of this system. The eight individuals counted at the request of HRC were compared with counts of 100 EPA employees, none of whom has known plutonium exposure.

6.

Seven of the individuals 6 indicated counts less than the 50 cercentilo position.

The eichth individual =(ll was at approximately the 55 percentile pssition.

One $)-of two individuals W counted at the recuest of the State fell in the 88 percentile position. None of the plutonium counts on the 10 individuals indicate a statistical probability of internal deposition. Additional data on count-ing of personnel requested by the State will be available at a later date.

No bicassay data was available at this time. Approximately 30 days are required for the urinalyses being performed. An additional delay was incurred by the necessity for resacoling to obtain larger samples.

Bioassay data will be reported when it becomes available.

90003195

=_

- 68 T

l

-15 V.

H.

Insnection of NECO Richland, Washinnten Facility l.

As briefly mentioned e.rlier, m NRC ins::ector and investipt--

were dispatched March 11 to the HEC 0 disposal site at Richland, Washington to assure a similar protriem did not exist at that location. During the period of :' arch 12-13, all the current employees and several other individuals were privately inter-viewed.

Individuals interviewed included the current site manager who has been in that position since 1968, two full

~,

time employees, one part time employee, the secretary, a former employee of the company which operated the site crior to NECO assuming operttions in 1968 and a former manager of a NECO California warehouse, who used to deliver waste to the site. No information was obtained during these interviews that indicated any radioactive material has ever been removed from the site.

2.

Visual observations aid alpha contamination surveys of private residences were condu:ted alcng with interviews. Visual observations were made at six of the seven residences and contamination surveys at fiv'e. The surveys covered such items as shoes that were worn at the Richland burial site, tools, equipment, containers, pieces of wood, wood cabinets and shelving, hoses and miscellaneous items.

The surveyed' areas included bedreams, living and dining rooms, garages, basements and shops. No contamination or contaminated items were found. The disposal site itself was found to be clean and orderly.

3.

Subsequent to the Richland visit, it was realized that the NRC investigator was a forner colleague of two of the individuals interviewed, including the site manager. To avoid any potential conflict of interest, another NRC investigator, acccmpanied by an inscector, was discatched to Richland. During the period of March 24-25, the site manager, the secretary and the part-time employee were each privately reinterviewed.

In eddition, another former employee was located and interviewed.

Radiation surveys, including alpha and beta / gamma contamination surveys were also performed. Results of these interviews And surveys re-affirmed the original findings that radioactive materials have apparently never ceen removed from the site.

90003196

  • i STATEMENT OF INDi'!ICUAL df G. A. Phillip lwno has identified himself to n,e as an Investigato Office of Inspection and Enforcement, U. S. Nuclear Regulatory Ccemission.

I have been advised by Mr. Phillip that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I have been emploved at the NECO Eeatty facility."s e about June idlB5f' From sometime in W until early Individual was the h.

6 During most of the time $ vidual $ was indi many racio-active waste containers that came to the site for buriai were ocened and mary of the containers, boxes and Bennett tanks, as well as the contents of the containers were taken from the site. This activity took place with the knowledge, consent and participation of Individualllp(,

While I do not have personal knowledge trac anycne at the corporate level of NECO was aware of this activity, I have been informed by a former NECO Beatty facility employee that he brought this matter to the attention of Individual MPNQt about 1969, and Individual 1df took no action to stop these activities. Individua Q was at that time N 6

I have read the above statement and it is true and correct to the best of my knowledge and belief.

Individual 1Et Signeo Maren 19, 1976 Exhibit #1 90003197

?. =

i j

l STATEMENT OF INDIVIOUAL k I, Individuali make the following statement feeely and voluntarily to Mr. G. A. Phillips who has identified himself to me as an Investigator, Office of Inspection and Enf orcement, United States Nuclear Regulatory Commission.

I have been advised by Mr. Phillips that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I joined. Nuclear Engineering Comoany, Inc., in March M. My M

~

I had no notice or knowledge, prior to Feoruary 20,1976, of any diversion of materials intended for discosal at either the Beatty, Nevada or Richland, Washington sites of fluclear Engineering Company, Inc.., or the fmproper, use of the Beatty, ?!evada cement mixer.

I have read the above statement, and it is true and correct to the best of my knowledg,e and belief.

Dated this 2nd day of April 1976.

IndividualT Signec Exhibit #2 90003198

-tu STATEMENT OF INDI'/ICUAL I, IndividuatidI, make the following statement freely and voluntarily to Mr. G. A. Phillips who has identified himself to me as an Investigator, Office of Inspection and Enforcement, United States Nuclear i

Regulatory Commission.

I have been advised by Mr. Phillips that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I had no notice or knowledge, prior to February 20,1976, of any diversion of materials intended for disposal at any of Nuclear Engineering Company, Inc.'s sites, or the improper off-site use of the cement mixer at the Beatty, Nevada site.

I have reed the above statement and it is true and correct to the best of my knowledge and belief.

Dated this 25th day of March 1976.

Individual 5,igneo Exhibit #3 9000L3199

~

-14 STATEME:!T OF I';TI'!!CUALk I, IndivicualM make the folicwing statement freely and voluntarily to Mr. G. A. Phillips who has identified himself to me as an Investigator, Office of Inspection and Enforcement, United States Nuclear Regulatory Commission.

I have been advised by Mr. Phillies that I do 'not have to make a statement and that any statement f do make may later be used in a court of law.

I joined Nuclear Engineerine Comcany, I.nc. in June My h is I had' no notic'e or knowledge, prior to February 20, 1976, of any 01 version of materials intended for discosal at either the Beatty, Nevada,or Richland, Washington sites of f!uclear Engineering Ccmpany, Inc., or the improper use of the Beatty ltevada cement mixer.

I have read the above statement, and it is true and correct to the best

~

of my knowledge and belief.

Dated this 25th day of March 1976.

Individuah Signec

\\

9 Exhibit #4

=

90003200

-lu STATE'4ENT OF I"DIVIOUAL k I, Individua?$ll, make the following free and vol,untary statement to John J. Ward who has identified himself to me as a representative of the U. S. Nuclear Regulatory Commission.

While I was employed by Nuclear Engineering Co.pany at Beatty, Nevada in 6 and 6.t. W was Individual t 1 Individualjgave me some plywood from the Nuclear Engineering premises before I went *o work there. After I wts working there, I was permittec by Individua to take home for my per::enal use a number of tools, dyes, drill bits and other items.

I was also permitted to take sheets of plywood from the premises.

Some of these items had come from boxes c# contaminated material shicoed to. the facility for disposal.

Individual would authorize the opening of boxes niid permit the workers to make their selection of items from the boxes.

I have no knowledge of any of these items having been offered for sale or sold by Individualsjor g borneU.S.jfgavemeasurveyor'stransitinafittedcasewhichhad Individual markings.

I do not know where this had come from.

Individualadhf' Signec Maren 17, 1976 Exhibit #5 90003201 9

l

~

-tu STATE"E':T Or :."::'." 'JAL M I, IndividualM make the following statement freely and 'oluntarily to G. A. Phillip who has identified himself to me as an Investigator, Office of Inspection and Enforcement, U. S. iluclear Regulatory Commission.

I have been advised by Mr. Phillip that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I fwa at the fliCO, Seatty facility from (rebru to about October M Adter working atM I returned to the Beatty facilih as it Q in March and left that position in March During the time I worked at the Beatty site I heard that radioactive waste containers and some of their contents were being taken from the site.

I do not have any firsthand personal knowledge of these things.

Whilekwas' permit or condone any of these activities to occur.

I made eivery. rea.w able effort to prevent such containers and/or radioactive waste from leaving the facility.

I have read the abcve statement and it is.true and correct to the best of my knowledge and belief.

Individual 4 Signeo MarerP18,1976 Exhibit #6 90003202

.m i

~.

.N STATBfENT OF I'nIVICL'*LN I, Individual Y make the following statement freely ank voluntarily

~

to G. A. Phillip who has identified himself to me as an Investigator, Office of Inspection and Enforcement, U. S. Nuclear Regulatory Commission.

I have been advised by Mr. Phillip that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I was employed by,'lECO at the Beatty freility frem. June M.o April 6 and again from about August Mto February 6 During the first emploveent. I had knowledge that boxes were being cpened and Individual and Indivicual'$, 6 M were aware of this being done.

Boxes and drums of radio-active waste were being opened and many items cor.tained in them were taken from the facility.

During one of my trip to the Bay Area in about August 1969, I During this conversation, Individual (Individua1M to contacted Individua in regard to the capability of

@fics as to what was going on at the site.

the site.

asked me for speci I informed him that plywood from shipping boxes, Bennett tanks and tools from radioactive shipping contain es were being taken fro.? the site. About two weeks later, Individuai came to the site and held discussiens with employees.$ but no action was taken nor way anything said to the Individual The above mentioned activities continued unchanged.

During the first oeriod of employment, I was personally aware that tanks of radioactive liquid wastes were emptied into the trench.

Individual)was aware this was being done.

Individual $ knew these liquid wastes were ccming to the site anc that there was no means of solidifying it before it was put into the trench.

I have read the above statement and it is true and correct to the best of my knowledge and belief.

Individual 8 s

Signed Maren 19, 1976 Exhib:t #7 90003203

e STATEMENTOFIflDIVIDUAl$

I, Individual 4 make the follcwine: statrent 'rcely and voluntarily to G. A. Phillip wno has identified himself :o me as an Investigator, Office of Insoection and Enforcement, U. S. Nuclear Regulatory Commissicn.

I have been advised by Mr. Phillip that I do not have to make a statement and that any statement I do make may later be used in a court of law.

I have been employed at the NECO Beatty facility since June M During all of my employment some containers of radioactive waste received at the facility were opened and containers as well as some of their contents were allcwed to leave the site. All of the 6 Individuals M an d permitted this to occur.

the opening (of containers and the removal of their contents.Individtal y supe He actively eingaged in the removal of plywood salvaged from box containers and Bennett tanks from the site as well as items taken from various containers receiv.ed as radioactive waste for burial at the site.

I have read the above statement and it is true and correct to the best of my knowledge and belief.

Individualh Signed Maren 20,1976 Exhibit #8

~

~

90003204 r

~.

l l

STATEMEi!T OF It'"I'!!MAlk I, Individual Y, make the following free and voluntary st'atement to John J. Ward, who has identified himself to me as a representative of the U. S. Nuclear Regulatory Commissicn.

I was employed bv Nuclear Engineering Comoany NECO) from about June 6 to April 6 From June M to Januar'

'l was 6

at the Beatty, Nevada disposal site.

From January to Apri' I was at the site.

While I was at the Beatty site it was the approved colicy to reclcim i

usable discarded items received in waste shipments which had low levels

  • sf contamination. The company had first choice, but NECO employees were permitted to take for their own use any items they might want tr need fur a personal project. This included sheets of plywood frem the waste shipment crates, tarps, hand tools, clocks, coveralls, and "Bennett tanks."

I personnally used plywood from the site to co'nstructM my residence in Beatty.

I also adopted a "Sennett" tank, and coated it with tar so that l' could use it for a septic tank at my residence.

l While these items were not normally sold to other persons in Beatty or elsewhere' they were used in swaos for equipment or services.

Four of the Bennett tanks were traded to a cement dealer in exchange for a 1500 gallon water tank.

With the approval of the 6 IndividualY I sold a Bridgeport milling machine to a man in Pahrumo, Nevada for $500.

The check for this item was made out to Nuclear Engineering Comoany.

The milling machine had come from the ICN Burbank olant in a deal made between Individual $ and Individual ( of ICN.

This was for a one time final cleanuo wherein one trailerload of contaminated waste would be discosed of free of charge in exchange for one trailerload of " clean" stuff frem the Burbank facility.

The " clean" items were from the fenced comoeund at the Burbank facility and, included, in addition to the milling machine, a welder (later sent to j

Moorhead),a small forklift (later sent to the California warehouse) and a drill press (used at Beatty).

j l

'(noncetectaoie) 90003205 Exhibit #9 l

~

.ti When solutions in containers were deliver d to the sita for disposal, their containers would be opened and if tne levels permitted the solutions would be poured directly into the trenches. These included liquid resins from Mare Island flaval Shipyard and 15 gallon containers from laboratories. High level solutions were put in storage tanks for later solidification.

I have read the above statement which is true and correct.

Individual Signed tiarcn 25, 1976 1

90003206 i

a 0

ao 5

e I

-_ __ __ _. __ _ j

.tw STATEME"T OF I"7I'!!0t.'aLilh I,Individua)Nlkmakethefollowingstatementfreelyan voluntarily to G. A. Phillip who has identified himself to me as an Investigator.

Office of Inspection and Enforcement, U. S. Nuclear Regulatory i

Commission.

I have been advised by Mr. Phillip that I do not have to i

make a statement and that any statement I do make may later be used in a court of law.

From at. leas't the becinning of my empleyment at the NECO Beatty facility in June dRgp>until the installation of a solidification facility i

in about March or April (IEEk all liquid radioactive waste received at

he Beatty facility was dumped into the trench as liquid. Although there was a mixer on the site, it was incperable and therefore there was no means of solidifying the liquid wastes for burial.

All of the individuals who 6 at the Beatty facility were aware of this situation, and it is my opinion that flECO corporate management had to be aware that radioactive licuid wastes were being received and that there was no means of solidifying it before it was buried.

I have read the above statement and it is ture and correct to the best of my knowledge and belief.

Individual'Ik Signea Marcn 25, 1976 Exhibit #10 90003207 4

6

5 STATE'T:T OF "-'":CL'/ L k

)

~

I Individualk make the following statement freely and voluntarily to G. A. Phillip who has identified himself to me as an Investigator, i

Office of Inspecticn and Enforcement, U. 5. fluclear P.egulatory Commission I have been advised by Mr. Phillio that I do not have to make a statement and that any statement I do make may later be used

(

in a court of law.

From at least the beginning of my employment at the NECO Beatty facility in June 6until the installation of a solidification facility in about March or April 6 all liquid radioactive waste received at the Peatty facility was dumped into the trench as liquid. Although there was a mixer on the site, it was inoperable and therefore there was no means of solidifying the liquid wastes for burial.

All of the individuals who at the Beatty facility were aware of this situation, and it is my coinion that ttECO corporate management had to be aware that radioactive liquid wastes were being received and that there was no means of solidifying it before it was buried.

I have read the above statement and it is true and correct to the best of my knowledge and belief.

l Individual b Signec Maren 25, 1976 Exhibit til 90003208 l

l

?.

  • LETTER SE"T BY I"0I'liC'MLY

~

Dear f4r. Phillip:

On March 25th 1976 I was requested by you and Mr. H. Book of flRC Region #V to sign a statement concerning tne disposition of Rad. Waste Liquid received at our site.

t<

Since then I keep

  • thinking I've given you some misleading information.

As stated it is true that there were no licuids solicified from the time I hired in, JuneM until the present Solidification system was put into operation.

I don't think at 'that time I informed you that we had stored in the neighborhood of 38,000 gal. of Rad. Liq;id in storage tank. This licuid was solidified when the system went ints cperation. This storage was started in mid 1973.

I think that you and my company should know this.

Please accept this letter as being written on my own free will and as my suggestion.

If you have any questions concerning this, please feel free to call me, or call on me.

Sincerely, Signed Individual ec:

File H. Book, NRL Region V Individual @

s Exhibit #12 90003209

-N STATEMEtiT OF IN0i'!!OUAL

~

John J. Ward,)who has identified himself to me as a representative of I, Individual make the following free and voluntary statement to the U. S. Nuclear Regulatory Commission.

Prior to@when I first came to work for Nuclear Engineering there were several clocks (anywhere from 6 to 15) stored in the. Cowell NECO facility. On occasion I would be asked by the Malnut Creek office to clean some of them up and send them to the office.

I had taken one of the clocks and put it in my pickup truck but I subsecuently sold the car.

It was a radium dial clock mounted in the floorboard. About 5 or 6 month ago I found a clock in the San Ramon warehouse and at Individual request sent it to him.

When barrels of tools were sent down from Mare Island they would occasionally be opened by Individua$and myself for salvage purposes.

The tools woald be placed on plastic and surveyed before being taken for use at the facility.

These tools later would be cleaned up to remove the magenta paint.

I have read the statement above which is true and correct.

Individual &

Signea April t,1976 Exhibit #13 90003210

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,or Mevcda, Depar::ent of Hu=an RaJources :hrough i:s Eccith Divisica,

o ascartain cha exis:ence of ::dioac:ive..::arials in undet:i;.nc:cd arece, which ::2y be loca:ed in and around the :cwn of 3es::y, end
o da: arc.ine :ha ex:ca: of such radioac:ivi:y once 1: is icc:::cd.

In order.:o.1ccc=clish this invastiga: ion, it will be necessary cha: authorized represhn a:iva of :he S':::e Heal:h Divisicn. ac-l sis:ad by Federal r:diological henl:h personnel as cunhorizad repre-son:a::.ves, en:ar priva:e and s. ublic <rceon :or raciocc:ivi:v cne.

if discovered,,r he pur;csa.of

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of =a:arials found :o bo radicac:ive.

The au:hority tinder which :he investiga: ion is being conducted is Ch p:er 459 of Nevada 2avised Statu:es.

The applica'cle previsions a::, Navada Revised S:acu:es are as fc11ous:

NRS 459.050 Inso. cc: ions.

1.

Any au: hor'::ad rapresenta:ive of the heal:h div'.sicn may enter a: any ressenchie :'ne upon any priva:e or public property for :ha purpose of de:er=ining whe:har chara :.s em plianca with or viola-icn cf :he provisions of

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g,f ATTACHMEh7 3 i l 1

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3:::enan: of Au::hori:y for Invcati;;.: ion 6

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.aac u ns 459.150 I= pounding of =c:erials.

i In the even: of cny encr.<;cncy, the heal:h division cay i= pound, or order :ho i= pounding of, sources of ionizin;.

YOdiation in he posscSSica of any person who in not..: Quipped

o observe, or w...o rai,.s :o ob erve, any prov,.s:..on c:...=. s 459.010 :o 459.160, inclu ive, er any rules or resule:icac issued under 25 459.010 to 459.160, inclusiva.

Durin:; the investigation, every effer: will be made :o tr.inimize disrupcion of priva:e end public buciness and do=cotic ranquili:y wi:h a view, h:vever, to providing =s:ci=um prc: ccicn to Navcda citizens locc cd within a?.d abou: tha Best y crea.

!=-

pounded proper:y will be approprie:cly identified, and wil", if subscqcan:17 found :o be safe, be ra:urned to the owner.,

at ec C A.s.e.! v iw. 't.

,1976.

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