ML20128G830

Demand for Info Issued to Gray Wireline Svc to Obtain Addl Info Re Deliberate False Statements Made to NRC to Avoid Paying Fees Associated W/Conducting NRC Licensed Activities

ML20128G830
Person / Time
Issue date:	02/11/1993
From:	Lieberman J NRC OFFICE OF ENFORCEMENT (OE)
To:
Shared Package
ML20128G827	List: ML20128G824 ML20128G830
References
EA-92-248, NUDOCS 9302160123
Download: ML20128G830 (6)

Text

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UNITED STATES NUCLEAR REGULATORY COMMISSION In the Matter of

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Docket No. 150-00042 GRAY WIRELINE SERVICE

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General License (10 CFR 150.20)

Levelland, Texas

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EA 92-248 DEMAND FOR INFORMATION 1

Gray Wireline Service (Licensee) is the holder of Texas Department.

of Health Radioactive Material License No. LO3541 issued by the State of Texas, an Agreement State.

The license t.uthorizes the Licensee to possess various radioisotopes for use in oil and gas well tracer operations at temporary job sites in the State of Texas.

Pursuant to 10 CFR 150.20(a), an Agreement State licensee is granted a general license by the U.S.

Nuclear Regulatory Commission (NRC or Commission) to possess and use licensed materials in non-Agreement States where the NRC maintains jurisdiction, provided certain requirements are met.

These requirements include the filing of.an NRC Form 241, " Report of Proposed Activities in Non-Agreement States," with the appropriate regional office of'the NRC.

Pursuant to 10 CFR 170.31, Agreement State licensees who conduct activities in.a non-Agreement State-under the reciprocity provisions of 10 CFR 150.20 are required to pay a fee with each filing of NRC Form 241.

II On August 14, 1992, the NRC Region IV office in Atlington, Texas, received an NRC Form 241 from Gray Wireline Service, LevMland,

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- Texas, and copies.of the company's Texas radioactive materials license.

The NRC Form 241, which was dated August 8, 1992, and was signed by Mr.-

Steve Gray, President of Gray Wireline Service, indicated that ~ the company planned to conduct " Injection well radioactive profile" activities in Baker, Montana, from August 17, 1992, to November 31, 1992.

Because the company had not enclosed.

payment of the fee required by 10 CFR 170,31, the NRC contacted Mr.

Steve Gray by telephone on August 20, 1992, and informed him that NRC regulations required a fee payment with the filing of NRC Form 241.

Mr. Gray indicated that he was not sure his company was going to perform the indicated work in Montana and did-not want to-pay the fee at this time.

Upon learning from another source that Gray.

Wireline Service had used radioactive lodine-131' tracer materials in Baker, Montana, from October 5, 1992, to November 2, 1992, the-NRC contacted Mr. Gray again on November 9, 1992, and as,ed him for the status of the proposed activities he had described on the-NRC Form 241.

Mr.' Gray said that he had not used (radioactive) tracer material in Baker, Montana, and, when asked, indicated that the NRC Form 241 he had filed'could be canceled.

L Based on this information, the NRC's Office of Investigations (OI) l interviewed Mr. Gray and obtained a sworn statement in which he admitted that he had used radioactive tracer materials in Montana in 1992 and that he had deliberately provided f alse information to i

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-3 NRC personnel on November 9, 1992, "because the work was already completed and I did not want to pay the fee."

The preliminary results of OI's investigation indicate that Mr. Gray and - Gray Wireline Service (1) violated 10 CFR 30.10, which prohibits licensees and licensee employees from deliberately submitting to the NRC information that the person knows is inaccurate-in some respect material to the NRC; (2) deliberately violated 10 CFR 30.9, which requires that information provided to the NRC by a licensee be complete and accurate in all material respr s;

and (3) deliberately violated 10 CFR 170.31, which requires that licensees performing activities under the authority of 10 CFR 150.20 pay fees.

The Licensee has admitted to deliberately providing false information to NRC personnel in an attempt to _ avoid paying the required fees.

Given NRC's limited inspection resources, and its obligation to ensure that the health and safety of the public is protected, the NRC must be able to rely on its licensees to. provide accurate information at all times.

As a result of the ' false information provided to the NRC by Mr. Gray, the. President of Gray-Wireline Service, the NRC was denied an opportunity to inspect the Licensee's use of radioactive materials in NRC jurisdiction.

As a

result, it is not clear why the NRC should have a. basis for-confidence that the Licensee, whose President deliberately provided false information to avoid paying required fees, will abide.by other NRC requirements that are essential to safety.

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--4 Therefore,.further information is needed to determine whether the Commission can have any reasonable assurance that - in the future, the Licensee will provide complete and accurate information to the Commission and otherwise conduct its activities in accordance with the commission's requirements.

III Accordingly, pursuant to sections 161c, 161o, 182 and 186 of the Atomic Energy Act of

1954, as - amended, and the Commission's regulations in 10 CFR 2.204, 10 CFR Part 30, and 10 CFR Part 170, in order for the Commission to-determine whether you should be permitted ' to conduct activities in NRC jurisdiction under the authority granted by 10 CFR 150. 20 or-other enforcement action-should be' taken to ensure compliance with NRC regulatory requirements, the Licensee is required to submit to the Director, Office of Enforcement, U.S.

Nuclear Regulatory Commission, Washington, D.C.

20555 within 30 days of the date of this Demand for Information, the following information,-in writing and_under oath or affirmation:-

A>

A statement describing why the NRC. should have confidence that Mr. Gray and Gray Wireline Service will-provide complete and accurate information to the NRC in the future;

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B.-

A statement describing 5 why the. NRC-should-have

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- reasonable assurance that. Gray' Wireline (Servi ~ce -

will= possess and use -radioactive material-!in'

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3 accordance-with the' NRC regulations when using.=

radioactive materials in NRC jurisdiction;~and 7

C.

A statement describing why the NRC 'should, not-rev_oke or suspend Gray Wireline Service's= authority.

to use the general 1icense.

The Licensee--also shall send copies of its-responsei to the.

it Assistant General Counsel for Hearings and EnforcementJat the same' address, and to.the Regional Administrator', NRC. Region IV, 611~ Ryan :

Plaza-Drive, Suite 400, Arlington, Texas 76011.

After reviewing; your. response, t h e t N R C.:- w i l l i d e t e r m i n e w h e t h e r --

further enforcement actionL s necessary to ensure +ompliance with:

i regulatory-requirements.-

FOR THE. NUCLEAR' REGULATORY COMMISSION:-

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J mes-Lieberman,' Director.

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O fice of' Enforcement ~

.3 Dated at'Rockville,: Maryland:

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this \\\\% day of Februarys1993 3

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RO DISTRIBUTTONi PDR SECY CA HThompson, DEDS RBernero, HMSS RCunningham, NMSS JLieberman, OE (4)

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- PSantiago, OE FIngram, OPA VMiller, OSP DWilliams, OIG EJordan, AEOD s.

BHayes, OI Day File EA File DCS RIV DISTRIBUTION:

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