ML20134D396

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Discusses Insp Repts 15000009/96-07 & 15000009/96-08 Conducted on 960806-07.NRC Exercising Enforcement Discretion Based on Circumstances Described in Subj Insp Rept
ML20134D396
Person / Time
Site: 15000009
Issue date: 10/07/1996
From: Ebneter S
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II)
To: Henderson D
AFFILIATION NOT ASSIGNED
References
EA-96-313, NUDOCS 9610220110
Download: ML20134D396 (4)


See also: IR 015000009/1996007

Text

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October 7, 1996

EA 96-313

Larry M. Jacobs and Associates. Inc.  !

ATTN: Mr. Daniel Henderson  !

Secretary / Treasurer

328 E. Gadsden Street

Pensacola Florida 32501

SUBJECT: EXERCISE OF ENFORCEMENT DISCRETION 1

(NRC INSPECTION REPORT NO. 150-00009/96-07 AND 150-00009/96-08)  !

Dear Mr. Henderson:

This refers to the s]ecial, unannounced inspection conducted by this office on

August 6-7, 1996. T1e results of this inspection were provided to you in our '

letter dated September 4, 1996. At that time you were informed that the

inspection had identified one apparent violation. the failure to obtain a l

general or specific NRC license, as required by 10 CFR 30.3. prior to using 1

portable nuclear gauges containing by-product material. Specifically, on i

numerous occasions during the calendar years 1991 through 1996. you used

Jortable nuclear gauges at Eglin Air Force Base (AFB) Hurlburt Field, and

Jensacola Nuclear Air Station (NAS). Florida, in areas where the NRC maintains  !'

jurisdiction for regulating the use of by-3roduct material without an NRC

license. You were informed at that time tlat the apparent violation was under

consideration for enforcement. Subsequent to issuance of the inspection

report, the NRC determined that Hurlburt Field. Florida is not an' area of

exclusive Federal jurisdiction: therefore, the work you performed at that

location did not-require an NRC license.

Although the requirements of 10 CFR 30.3 apply to work performed in areas of

exclusive Federal jurisdiction in Agreement States, we also note that as an

alternative to obtaining an NRC license, as permitted by NRC practice.

Larry M. Jacobs and Associates. Inc. (LMJA) could have filed an NRC Form-241,

paid the associated fees, and conducted these activities as described in

10 CFR 150.20. -

The-inspection established that your representatives did not ap] ear to be

aware of the need to either have a s]ecific license under 10 CFR 30.3 or in

lieu thereof, to file a Form-241 wit 1 the NRC. The inspection also determined

that you relied on base personnel to inform you of the applicable regulatory

requirements regarding licensed activities performed by you at their

facilities. As a result, you believed that the work could be performed under

authorization provided through your State of Florida Radioactive Materials

License.

Normally, the failure to obtain an NRC license or failure to file an

NRC Form-241 to notify the NRC of activities being conducted within its

jurisdiction would be considered for escalated enforcement action which could

include the issuance.of a civil penalty in accordance with the " General

9610220110 961007 >

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Larry M. Jacobs and Associates. Inc. 2

Statement of Policy and Procedures for NRC Enforcement Actions" (Enforcement

Policy). NUREG-1600. However, after consultation with the Director. Office of

Enforcement, and the Deputy Executive Director for Nuclear Materials Safety.

Safeguards, and Operations Support the NRC is exercising enforcement

discretion and is not taking any enforcement action in this matter, in

accordance with Section VII.B.6 of the Enforcement Policy. The NRC is

exercising enforcement discretion based on the circumstances described above

and in the subject inspection report, including our conclusions that you did

not intentionally fail to obtain the proper license and that LMJA did not

understand the regulatory requirements pertaining to use of licensed materials

in areas of exclusive Federal jurisdiction within an Agreement State. In

reaching this decision, the NRC also considered the efforts taken by LMJA to

become familiar with applicable NRC requirements, the fact that LMJA was not

made aware by Eglin AFB or Pensacola NAS contracting personnel that the bases

contained areas of exclusive Federal jurisdiction, and our conclusions that

activities conducted by LMJA at these facilities appeared to have been done

safely and generally in accordance with the conditions of your Florida

license.

Although the NRC is exercising enforcement discretion based on the

circumstances identified during the inspection, you are advised that future

failures to seek appropriate authorization to perform activities in areas ,

where the NRC maintains jurisdiction will result in significant enforcement 1

action. We would expect that, in the future. LMJA would obtain written

assessments from, or document assessments by. Federal authorities as to ,

whether a ]roposed work site is in an area of exclusive Federal jurisdiction. l

Absent suc1 documentation showing that Federal authorities assessed the work '

site as not being in an area of exclusive Federal jurisdiction, significant

enforcement action may be taken for failure to seek the required authorization

to perform licensed activities in areas of exclusive Federal jurisdiction.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice." a copy of

this letter and any reply will be placed in the NRC Public Document Room.

Should you have any questions regarding this inspection, please contact

Mr. Charles Hosey at (404) 331-5614.

Sincerely.

/h

ewart neter <

Regional Administrator

l

Docket Nos.: 150-00009/96-07 and 150-00009/96-08

Florida License Nos. - 1508-1, 1508-2

cc: State of Florida

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Larry M. Jacobs and Associates. Inc. 3

Distribution:

EJulian, SECY

BKeeling, CA

'

JTaylor, EDO

HThompson, DEDS

SEbneter, RII

CPaperiello NMSS

DCool, NMSS

LChandler. OGC

JGoldberg, OGC

Enforcement Coordinators

RI, RII, RIII. RIV

l EHayden, OPA

HBell, OIG

GCaputo. OI

EJordan, AEOD

JLieberman, OE

MThomas. OE

OE:EA File (BSummers)(2 Letterhead)

CEvans, RII

Buryc, RII

CHosey. RII

WLoo. RII

KClark, RII

RTrojanowski, RII

ABoland, RII

PUBLIC

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SEND TO PUBLIC DOCUMENT R m p [ES/ NO

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OFFICE Ril CRS Ril EICS ' Ril OPA Rit-ORA

Signature

MAME BMALLETT BURYC CIVANS LREYES h

DATE 09/ /% 09/ /% 09/ /% OC. /%

COPY? YES NO YES NO YES NO YES NO

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J. Lieberman 2 l

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This case is not exempt from 0E's enforcement action timeliness requirements.

Attachments: 1. Draft Letter to Chadbourne

2. Draft Letter to Okaloosa

3. Draft Letter to Bailey

4. Draft Letter to Jacobs

cc w/ attachments: D. Cool, NMSS

J. Goldberg, OGC

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