ML20129C442

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EN-96-074:on 961001,notice of Proposed Imposition of Civil Penalty in Amount of $900,000 Issued to Licensee.Action Based on Investigation by Oig,In Addition to Several Insps Performed by NRC Staff
ML20129C442
Person / Time
Issue date: 10/01/1996
From: Lieberman J, Satorius M
NRC OFFICE OF ENFORCEMENT (OE)
To:
References
EA-95-009, EA-95-9, EN-96-074, EN-96-74, NUDOCS 9610240030
Download: ML20129C442 (2)


Text

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October 1, 1996 EN 96-074 0FFICE OF ENFORCEMENT NOTIFICATION OF SIGNIFICANT ENFORCEMENT ACTION Licensee:

Thermal Sciences Inc.

(EA 95-009)

St. Louis, Missouri Subiect:

PROPOSED IMPOSITION OF CIVIL PENALTY - $900,000 This is to inform the Commission that a Notice of Violation and Proposed Imposition of Civil Penalty in the amount of $900,000 will be issued on or about October 1,1996, to Thermal Sciences, Inc. (TSI), the licensee contractor that manufactures Thermo-Lag fire barrier products.

The action is based on an investigation by the Office of the Inspector General, in addition to several inspections performed by NRC staff, that identified nine Severity j

Level I violations.

All of the violations are cited against 10 CFR 50.5,

" Deliberate Misconduct " due to TSI having deliberately and repeatedly provided inaccurate or incomplete information to the NRC concerning TSI's fire endurance and ampacity testing programs for Thermo-Lag f < re barriers, In accordance with the Enforcement Policy, a base civil penalty in the amount of $10,000 normally is considered for a Severity Level I violation involving a licensee contractor.

However, in this case, the staff considered the i

egregious, deliberate, and repeated nature of these violations, especially where the use of Thermo-Lag products resulted in a degradation in the required fire safety margins and an increase in the potential consequence a fire could have on plant safety.

Because of the deliberateness of the violations and the increased consequence to safety, in conjunction with the monetary benefit that TSI received by the marketing of inadequately tested products to NRC licensees, the staff considered this matter to constitute a very significant regulatory concern which necessitated a significant enforcement action.

Consequently, the NRC decided to utilize its full civil penalty authority under the Atomic Energy Act by invoking enforcement discretion in accordance with Section VII.A of the Enforcement Policy and escalating the civil penalty to the maximum statutory limit of $100,000 for each of the nine Severity Level I violations.

Thus, the total civil penalty for this action is

$900,000.

The Commission was consulted on this proposal through SECY-96-198 and expressed no objection.

It should be noted that TSI has not been specifically informed of the enforcement action.

The schedule of issuance and notification is:

Mailing of Notice October 1, 1996 Telephone Notification of Licensee October 1,1996 The State of Missouri will be notified.

j TSI has thirty days from the date of the Notice in which to respond.

i Following NRC evaluation of the response, the civil penalty may be remitted, mitigated, or imposed by Order.

Contacts: M. Satorius, OE, 415-3280 J. Lieberman, OE, 415-2741 9610240030 961001 i

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EN 96-074 Distribution OWFN OWFN TWFN Regional Offices Chairman Jackson EDO OC RF RIV Comm. Rogers DEDR AEOD RII WCF0

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Comm. Dicus DEDS OP CTR RIII Comm. Diaz OE NMSS Comm. McGaffigan OGC IRM MAIL SECY NRR OIG NUDOCS OCA 01 RES PUBLIC PA SP ACRS IP PRELIMINARY INFORMATION - NOT FOR PUBLIC DISCLOSURE UNTIL VERIFICATION TIAT LICENSEE HAS RECEIVED ACTION l

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