ML20128P663

Responds to Licensee Request to Vacate Imposition of Civil Penalty of $15,000 & Offers Two Alternatives.Civil Penalty May Be Paid Over Period of Time W/Interest or Agree to Encl Confirmatory Order

ML20128P663
Person / Time
Issue date:	02/23/1993
From:	Lieberman J NRC OFFICE OF ENFORCEMENT (OE)
To:	Preston R AMERICAN TESTING & INSPECTION
References
EA-92-102, NUDOCS 9302250063
Download: ML20128P663 (7)

Text

l <

Cf su n,a ,

'l f$s 8% UNITED STATES

['

)* j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20065-0001 3 f '

%, ,/

FEB 2 31933 General Licensee 10 CFR 150.20 EA 92-102 American Testing and Inspection, Inc.

ATTN: Mr. Ronald Preston President 1904 Cherry Hill Road Joliet, Illinois 60433

SUBJECT:

STATUS ON NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY - $15,000 This refers to the telephone conversation on January 26, 1993, between you and Ms. Patricia A. Santiago, of my office, regarding your letter dated November 30, 1992 in reply to our Notice of Violation and Proposed Imposition of Civil Penalty-$15,000 dated October 7, 1992. In your November 30, 1992 reply, you admitted the violations in the Notice, but requested that the proposed imposition of civil penalty be vacated due to the fact that you have gone into Chapter 7 bankruptcy and that American Testing &

Inspection, Inc. ceased industrial radiography operations on September 6, 1992.

As Ms. Santiago explained, the civil penalty is still outstnnding. However, under the circumstances of this case, we have decided to offer you two alternatives. First, you may choose to pay the civil penalty over time with interest.

Alternatively, we will withdraw the proposed civil penalty if you agree to a Confirmatory Order (Order) whereby you will not be involved in licensed activities in NRC jurisdiction for a period of three years.

If you desire to avail yourself of the alternative of payment over time, in order that a schedule may be developed for payment and to support your position, you will need to submit documentation of your Chapter 7 bankruptcy petition. That documentation must be submitted within 30 days of the date of this letter to me at the address indicated in the following paragraph. I will then provide you with a note for payment over three years at an interest rate of 4 percent.

If you prefer the second alternative, you must sign the enclosed Order in duplicate, under oath or affirmation, and submit it within 30 days of the date of this letter to the Director, Office of Enforcement, U. S. Nuclear Regulatory Commission, Washington, D. C. 20555. Following receipt, I will return a copy of the 9302250063 930223 PDR STPRQ ESGI g/

'h

I

'La J. $33 2

signed order to you. If you decide to enter into this confirmatory order, the NRC will not impose the civil penalty and the matter will be considered settled without payment of the previously proposed civil penalty. However, should you violate any of the terms of Section IV of the order, then the civil penalty of $15,000 would be due in full.

If I do not receive your acceptance of either of the above options, NRC will proceed to issue you an Order imposing the civil penalty of $15,000. If you have any questions, please contact me at 301-504-2741.

Sincerely, p&

James Lieberman, Director Office of Enforcement Enc 1: Confirmatory Order t

e i

i 1

l I'

i UNITED STATES

NUCLEAR REGULATORY COMMISSION I

In the Matter of )

i ) General License

! American Testing & Inspection, Inc. ) 10 CFR 150.20 l Joliet, Illinois 60433 ) EA 92-10?

i i

CONFIRMATORY ORDER I

i American Testing and Inspection, Inc. (ATI), was formerly holder 4

j of State of Illinois Byproduct Material License No. 01085-01

! (License) issued on January 8, 1988. The License authorized the possession and use of sealed sources of Iridium-192 in industrial j radiographic exposure devices to perform licensed activities within the State of Illinois. Pursuant to 10 CFR 150.20 and its

! License, ATI was authorized to possess and use licensed i

byproduct materials to perform industrial radiography in non-i

Agreement States. ATI's License expired on August 31, 1992.

i

The License was transferred to McNDT Leasing, Inc. and amended in 4

its entirety in accordance with letters dated August 31, 1992 and

September 3, 1992.

II An inspection by the Nuclear Regulatory Commission (NRC) was i

conducted on February 12 through March 27, 1992, of ATI's 4 activities that were conducted in the States of Indiana and Michigan (non-Agreement States).

Six violations were identified, including (1) the failure to-file NRC Form 241 on 174 days in 1991 when performing radiography in non-Agreement-States in accordance with 10 CFR 150.20(b) (1); (2) performing L

a. , , . . . , , . ~ . , , , , - - .

4 2

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

The NRC issued Enforcement Action (EA)92-102 against ATI consisting of a Notice of Violation and Proposed Imposition of civil Penalty-$15,000 (Notice) dated October 7, 1992. Mr. Ronald Preston, formerly President, ATI, responded on November 30, 1992, to the Notice admitting the violations, but requesting that the proposed civil penalty be vacated since ATI had gone into Chapter 7 Lsnkruptcy and ceased industrial radiography operations. However, there is nothing in that Notice that precludes Mr. Preston from performing radiography under another licensee's Agreement State license and, pursuant to 10 CFR 150.20, from engaging in licensed activities in NRC jurisdiction.

III The Notice proposed a civil penalty which is still outstanding.

As the par' ties desire to resolve all matters pending between them,-Mr. Preston agrees, for a period of three years from the date he signs this confirmatory Order, that he, ATI, or a 1

_ _ _ _ _ _ _ _ _ _ - . - _ _ _ _ - - _ - - --- J

3 successor entity wherein Mr. Preston is an authori::ed user, radiographer, radiographer's assistant, Radiation Safety Officer, an Assistant Radiation Safety Officer, an officer, or a controlling stockholder, shall not apply to the NRC for a new license, nor shall Mr. Preston, ATI, or a successor entity, as described above, engage in licensed activities within the jurisdiction of the NRC for that same period of time.

I IV Accordingly, pursuant to sections 81, 161b, 1611, 186, and 234 of the Atomic Energy Act of 1954, as amended, and the Commission's regulations in 10 CFR 2.202, 2.205, and 10 CFR Parts 30, 34, and f

150, IT IS HEREBY ORDERED, STIPULATED AND AGREED between the NRC and Mr. Preston as follows:

1. The NRC withdraws the civil penalty of $15,000 as proposed in the Notice dated October 7, 1992 (EA 92-102);

2. For a period of three years from the date Mr. Preston signs this Confirmatory Order, Mr. Preston, ATI, or any successor entity, wharein Mr. Preston is an authorized user, radiographer, radiographer's assistant, Radiation Safety Officer, an Assistant Radiation Safety Officer, an officer, or a controlling stockholder, will not apply to the NRC for a new license, nor shall Mr.~Preston, ATI, or a successor entity, as described above, engage in licensed activities within the jurisdiction of the NRC for that same period of time.

4 4

3. This confirmatory Order constitutes settlement without payment'of a civil penalty proposed in the Notice dated October 7, 1992 (EA 92-102). However, if Mr. Preston, ATI, or a successor entity violates paragraph 2 of this Section, then the civil penalty of $15,000 will be reinstated by an order Imposing civil Penalty and the civil penalty of. $15,000 will be.

due in full within 30 days of the date of that Order Imposing Civil Penalty.

4. Mr. Preston, ATI, or any successor entity waive the right to contest this Order in any manner, including requesting a hearing on this Order or the Order Imposing Civil Penalty, should one be issued as provided in paragraph 3 of this Section.

FOR AMERICAN TESTING AND INSPECTION, INC.

Dated: BY:

Ronald Preston Net ry:

FOR THE NUCLEAR REGULATORY-COMMISSION-l Dated: _ _ _

BY:

L

4:

, _. ' .: o .

i =:~

! :: ~

i

-; 3s 4

f-- - -

Distributilon

{j PDR- ---

L cA-l: SECY<

1- - HThomp' son, DEDS

! - ABDavis, RIII JLieberman, OE PSantiago, OE i'- JGoldberg,;OGC -

l - RBernero,,:NMSS-

7 Enforcement Coordinators L RI,.RII, RIII, RIV,.RV

~

l- FIngram,-PA i BHayes, OI l DWilliams, OIG-

[ . EJordan, AEOD-

[

VMiller, SP-EA File

! Day File-

!. DCS i

1 i-N i

/D DLctUt6 b.b Ifl'b2Cccr.. /

OGC gl.,0 OR '

RIII -

NMSS/pf. JijD.

. PSantiago Goldberg.-ABDa 9- RBerinero' eberman

_ 2/g/f/93 2/ 2A/931 2/2%/93 2 //'f/93_ /93

i. h4

• f '

h -

f G: \cechses\ 9c,tca r 2. ps

[

t i

~

L ,

9 .

~-

s _

3- _ - - :_

~

r

- ,9

" H ^^,

, , - , , - . . . . , ._.m-, , . _

. ,. ~,_2.,...a.__...-.,;.a... _ . -

3 cf r anc oy

• /g It UNITED STATES i )m S NUCLEAR REGULATORY COMMISSION 3- :E WASHINGTON, D.C. 20666-0001

% jf

• • • • • FEB 2 3 GM General Licensee 10 CFR 150.20 EA 92-102 American Testing and Inspection, Inc.

ATTN: Mr. Ronald Preston President 1904 Cherry Hill Road Joliet, Illinois 60433

SUBJECT:

STATUS ON NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY - $15,000 This refers to the telephone conversation en January 26, 1993, between you and Ms. Patricia A. Santiago, of my office, regarding your letter dated November 30, 1992 in reply to our Notice of Violation and Proposed Imposition of Civil Penalty-$15,000 dated October 7, 1992. In your November 30, 1992 reply, you admitted the violations in the Notice, but requested that the proposed imposition of civil penalty be vacated due to the fact that you have gone into Chapter 7 bankruptcy and that American Testing &

Inspection, Inc. ceased industrial radiography operations on September 6, 1992.

As Ms. Santiago explained, the civil penalty is still outstanding. However, under the circumstances of this case, we have decided to offer you two alternatives. First, you may choose to pay the civil penalty over time with interest.

Alternatively, we will withdraw the proposed civil penalty if you agree to a Confirmatory Order (Order) whereby you will not be involved in licensed activities in NRC jurisdiction for a period of three years.

If you desire to avail yourself of the alternative of payment over time, in order that a schedule may be developed for payment and to support your position, you will need to submit documentation of your Chapter 7 bankruptcy petition. That documentation must be submitted within 30 days of the date of this letter to me at the address indicated in the following paragraph. I will then provido you with a note for payment over three years at an interest rate of 4 percent.

If you prefer the second alternative, you must sign the enclosed Order in duplicate, under oath or affirmation, and submit it within 30 days of the date of this letter to the Director, Office of Enforcement, U. S. Nuclear Regulatory Commission, Washington, D. C. 20555. Following receipt, I will return a copy of the 9302250063 930223 PDR STPRG ESGI g4 ili

i , .

) c :,: 2; $33 1

2

signed order to you. If you decide to enter into this Confirmatory Order, the NRC will not impose the-civil-penalty and the matter will be considered settled without payment of.the--

, previously proposed civil penalty. However, should you violate

. any of the terms of Section IV of the order, then the civil penalty of $15,000 would be due in full.

If I do not receive your acceptance of either of the above options, NRC will proceed to issue you an Order imposing the civil penalty of $15,000. If you have any_ questions,'please j contact me at 301-504-2741.

sincerely, 4

/

James Lieberman,-Director

, Office of Enforcement Enc 1: Confirmatory Order i

I i

i i

f b

i 1

i a

)

+

+

- w -0 --

,- .~m, n.nen.-m--,, .,e- - - - ,, - .-rr-,, ,-

- , - ~ . - - - ,- . . . . - . . - - . - . -- . -

4 4

I 3

Distribution f PDR  !

i CA j SECY

HThompson, DEDS

ABDavis, RIII

JLieberman, OE i PSantiago, OE JGoldberg, OGC

RBernero, NMSS

} Enforcement Coordinators

RI, RII, RIII, RIV, RV

! FIngram, PA BHayes, OI DWilliams, OIG i - EJordan, AEOD-

! VMiller, SP i EA File

! Day File i DCS i

k i

l l

^

8.h *b fl$teca- /

! OE . M(2 Of,C DLctuts fjL() RIII NMSS/pf.- ID 4

PSantiago %Goldberg ABDa i RBedero J: ieberman

! 2/g/f/93 12/7A/93: 2/2%/93 2//'7/ 93 /93 l.

o ht-fsf(/hl%h Q'. \ 0 GCfl$cS\ '19,( CQ r 2 2S 3

i a

i

+

A

? $

4

.- ., , , . . . . . ~ . - . - - . . . - , .

. . - -. . ~ . .- . - . - . ....

UNITED STATES NUCLEAR REGULATORY COMMISSION In the Matter of )

) General License i

American-Testing & Inspection, Inc. ) 10 CFR-150.20 l Joliet, Illinois 60423 ) EA 92-102 1'

CONFIRMATORY ORDER I

American Testing and Inspection, Inc. (ATI), was formerly holder of State of Illinois Byproduct Material License No. 01085-01 (License) issued on January 8, 1988. The License authorized the possession and use of sealed sources of iridium-192 in industrial radiographic exposure devices to perform licensed activities l within the State of Illinois. Pursuant to 10 CFR 150.20 and its License, ATI was authorized to possess and use licensed byproduct materials to perform industrial radiography in_non-l -

Agreement States. ATI's License expired on. August 31, 1992.

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

I II i

! An inspection by the Nuclear Regulatory Commission (NRC)'was i

i conducted on February 12 through March 27, 1992, of ATI's-activities that were conducted in the States-of Indiana and Michigan (non-Agreement States).

-Six violations were identified, i

including (1) the failure to file NRC Form 241 on-174 days in 4

1991 when performing radiography in non-Agreement States i

in accordance with 10 CFR 150.20(b) (1) ; (2) performing i

4

-- 4 e-, ,-e , - - --m , n--< ,, r r , a-

4 .

i

2 radiography in non-Agreement States on more than 180-days within calendar year 1991 in violation of 10 CFR 150.20(b) (3) ; and (3) the failure of ATI to have a qualified independent organization observe ATI's radiographers or conduct an audit of

ATI's radiation safety program in violation of Section IV.C. of an Order Modifying License that was issued by the NRC to ATI on

! November 30, 1989.

I j The NRC issued Enforcement Action (EA)92-102 against i

ATI consisting of a Notice of Violation and Proposed i

Imposition of Civil Penalty-$15,000 (Notice) dated October 7, 1992. Mr. Ronald Preston, formerly President, ATI, responded on

{ November 30, 1992, to the Notice admitting the violations, but requesting that the proposed civil penalty be vacated since ATI l had gone into Chapter 7 bankruptcy and ceased industrial

! radiography operations. However, there is nothing in that Notice that precludns Mr. Preston from performing radiography under another licensee's Agreement State license and, pursuant to 10 CFR 150.20, from engaging in licensed activities in NRC l jurisdiction.

1 III The Notice proposed a civil penalty which is still outstanding. ,

As the paities desire to resolve all matters pending between them, Mr. Preston agrees,-for a. period of L Se years from the

date he signs this Confirmatory Order, that he, ATI, or a ~

i s'

m., ,. - . .

4 3

successor entity wherein Mr. Preston is an authorized user, radiographer, radiographer's assistant, Radiation Safety Officer, an Assistant Radiation Safety Officer, an officer, or a controlling stockholder, shall not apply to the NRC for a new license, nor shall Mr. Preston, ATI, or a successor entity, as described above, engage in licensed activities within the jurisdiction of the NRC for that same period of time.

IV Accordingly, pursuant to sections 81, 161b, 1611, 186, and 234 of the Atomic Energy Act of 1954, as amended, and the Commission's regulations in 10 CFR 2.202, 2.205, and 10 CFR Parts 30, 34, and 150, IT IS HEREBY ORDERED, STIPULATED AND AGREED between the NRC and Mr. Preston as follows:

1. The NRC withdraws the civil penalty of $15,000 as proposed in the Notice dated October 7, 1992 (EA 92-102);

2. For a period of three years from the date Mr. Preston signs this Confirmatory Order, Mr. Preston, ATI, or any successor entity, wherein Mr. Preston is an authorized user, radiographer, radiographer's assistant, Radiation Safety Officer, an Assistant Radiation Safety Officer, an officer, or a controlling stockholder, will not apply to the NRC for a new license, nor shall Mr.'Preston, ATI, or a successor entity, as described above, engage in licensed activities within the jurisdiction of the NRC for that same period of time.

l l

1

j

• j .' .

4

3. This Confirmatory. Order constitutes settlement without-paymant of a civil' penalty proposed in the Notice dated October 7, 1992 (EA 92-102). However, if Mr. Preston, ATI, or a successor entity violates paragraph 2 of this section, then the l civil penalty of $15,000 will be reinstated by_an-Order Imposing civil Penalty and the. civil penalty of $15,000 will be due in full within 30 days of the date of that Order Imposing i Civil Penalty.

4. Mr. Preston, ATI, or any successor entity waive the right to contest this Order in any manner, including requesting a i

~

hearing on this order or the Order Imposing Civil Penalty, should j one be issued as provided in paragraph 3 of this Section.

i i

FOR AMERICAN TESTING A!;D INSPECTION, INC.

i i

j Dated: BY:

{ Ronald-Preston

, -Notary:

i

{ FOR THE NUCLEAR REGULATORY COMMISSION l

Dated: BY:

t i

, - . - - - -. .-. . . . . . . . . . . - - . . - . _ , - - . . . -