ML20134H420

Sixth Partial Response to Request for Documents.Forwards Document Listed in App F.Document Encl Available in PDR

ML20134H420
Person / Time
Issue date:	10/28/1996
From:	Pugh N NRC OFFICE OF ADMINISTRATION (ADM)
To:	Tourtellotte J TOURTELLOTTE, ROSS & GRAY
Shared Package
ML20134H423	List: ML20134H420 ML20134H436
References
FOIA-96-246 NUDOCS 9611140093
Download: ML20134H420 (2)

Text

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v2. nucccan neuutaivn v LUMMUN teRC FOIA REQUEST fM8tRISI~

FOIA -

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• RESPONSE TYPE g RESPONSE TO FREEDOM OF l FINAL l X l PA*1TIAL (6thI t INFORMATION ACT (FOIA) REQUEST oATE s eeee. 10CT281996 DOCKET NUMBER (S)(/tapphcablef REQUESTSRames R. Tourtellotte PART 1.-AGENCY RECORDS RELEASED OR NOT LOCATED (See checked boxes)

No agency rec'ords subject to the request have been located.

Na additional agency records subject to the request have been located. l Requested records are available through another publ;c distribution program. See Comnients section.

Agency records subject to the request that are identified in Appendix (es) are already available for public inspection and copying at the NRC Public Document Room,2120 L Street, N.W., Washincton, DC.

Agency records subject to the request that are identified in Appendix (es) F are being made available for public inspection and copying y

at the NRC Public Document Room,2120 L Street, N.W., Washington, DC, in a folder under this FOI A number.

The nonproprietary version of the proposal (s) that you agreed to accept in a relephone conversation with a member of my staff is now being made available for public inspection and copying at the NRC Public Document Room,2120 '. Street, N.W., Washington, DC, in a folder under this FOI A number.

Agency records subject to the request that are identified in Appendix (es) may be inspected and copied at the N RC Local Public Document Room identified in the Comments section.

Enclosed is mformation on how you may obtain access to and the charges for copying records located at the NRC Public Document Room,2120 L StroSt, N.W., Washington, DC.

y Agency records subject to the request are enclosert (Appendix F)

Records subject to the request have been referred to another Federal agency (ies) for review and direct response to you.

Fees l

You will be billed by the N RC for fees totaling $

You will receive a refund from the NRC in the amount of $ ,

in view of N RC's response to this request, no further action is being taken on appeal letter dated , No. +

PART 11. A-INFORMATION WITHHELD FROM PUBLIC DISCLOSURE l Cert;in information in the requested records is being withheld from public disclosure pursuant to the exemptions described in and for the reasons stated in Part 11, B, C, and D. Any released portions of the documents for which only part of the record is being withheld are being made evellable for public inspection and copying in the NRC Public Document Room,2120 L Street, N.W., Washington, DC in a folder under this FOI A number.

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APPENDIX F (RECORD RELEASED)

1. 5/13/96 E-Mail from Geoffrey Cant, OE to L Camper, NMSS et ,

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Subject:

IWI action with enclosures (15 pages) l i

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• June 7,1996 samucrorconneu rRKt Atalleda ,

Mr. Russell A. Powell, Director FREEDOM 0F INf0RMATION "' '*"*" CT l Freedom ofInformaion and Publication Services ACT REQUEST l Office of Administration t).S. Nuclear Re u Commission I c 2'A - 4 b - A N Washington, D. '. ,[ f -(o-9[,

Reference:

Freedom ofInformation Act fax request l

Dear Mr. Russell,

1

This is a Freedom of Information Act request for documents and computer disks pertaining to an l NRC caforcement actio, entitled. Notice of Violation and Proposed imposition 01 Civil Penalty -

$7500., and Confirmatory Order Modifying Ucense (effective immediately) (NRC Investigation l Report No. 4-9.4022). This action is taion by the NRC against innovative Weaponry,Inc. (IWI)

I with notificati.m being posted May 15,1996. Copies of the enforcement and licensmg documents are attached for reference purposes.

The documeats requested include:

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1. NRC investigation Report No. 4-95-022 and exhibits.

2. All other documents referred to, relied upon or used by the NRC enforcement and licensing offices as a basis for taking the enfortement action and issuing the confirmatory order.

3. A list of all NRC cases closed by Virginia VanCleve, Office ofInvestigations, since 1991 including:

a. Name oflicensee company

b. Address oflicensee company

c. Phone and fax numbers oflicensee company d.' l.icensee contact person

c. Daic each case was opened

f. Dates of site visits

g. Names of all persons interviewed by investigatorin cach case

h. Date each case was closed I. Recommended actions ofinvestigatorin each case J. 13nforcement action taken in each case

4. Copies of all general licenses for distribution which pertain in any way to the distribution of gunsights.

( 5. For each licenwc listed in the immediately preceding item 4. pmvide the following: l l

a. A list of dates of inspections for the 5 years preceding tids request  !

and the name of the NRC inspectors.

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_ m l b. A list of dates of investigations for the 5 years preceding this request, the name of the investigator, action acommended by the investigator and cnfon:ement action taken.

The computer disks requested include:

1. A disk containing list of b. MSS licensees, including names, mailing l addresses, contact persons phones and program codes.

l 2. Separately or on the same disk, the same mformation breaking out .

! general license holders of distribution licenses.

l If possibic, the disk or disks, should be in Wordperfect 5.1.

This request is made on behalf cf the licensee IWI, by its counsci, James R.Tourtellotte. The information sought is necessary to prepare the IWI defense and Answer to Notice of Violation pursuant to 10 CFR 2.205.

IWI respectfully requcats waiver of any and all fees inst might otherwise be assessed under an

ordinary FOIA request. This is a request for documents pursuant to the legitimate right of a l disputant to discover records of a federal agency. As such it is not an ordinary FOIA request as anticipated by the statute or NRC regulations.

This request is being made through FOI A channels because IWI counsel was directed to do so by NRC representatives. It is presumed that this is for the administrative convenience of the NRC. l l

Whatever the reason, it is inappropriate for a federal agency ! impose fees for documents subject l to discovery. In this circumstance, FOIA fees prescribed by regulators should not be assessed in j l

the first instance or,if the NRC administrative practice requires it, should be waived because the i request is in the nature of discovery.

Please be advised that there is a sense of urgency in this casc. The original date for IWI response to the NRC Notice of Violation was June 14,1996. Counsci for IWI and the NRC Director of F.nforcement have agreed to extend that time to 30 days but not later than July 15. 1996_.

Consequently, your response time to this request has a direct bearing upon how soon issues in this

,. case can be addressed and resolved.

Should the request for waiver of fccs be denied, IWI will pay up to $500. for the requested documents and disks. However, such payment should not be regarded as a waiver ofIWl's right to pmtemt such fees and requent reimbursement.

iWI counsel will be traveling throus,h Asia from May 27 to June 10. During that time, NRC representatives may correspond with Anita Parker at (703) 97t06784 concerning this FOIA request. Ms. l'arker is fully empowered to act on behalf of IWI counsel.

Thank you for your kind and prompt attention to this very important matter.

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_d m 9_ M l l Jane R.Tourtellotte l Attorney-at law l

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. JAsesR.ToURTEtJ#rrE ATWEpesY AT t.AW EUrIRtadt 1300 K NAM MTaBa7 AaIE00f0p(,VA 33300 Facsimile Transmission =gl=

June 7,1996-1:09 pm har A&mhnmens nart Attention: Mr. Russell A. Powell, Din:ctor uammmmm Company: NRC. Frcedom of information & Publications Telephone #: 301-415-6527 Fax #t 301-415-5130 Senbject: FOIA Request Sender: Anita Parker Sender Telephone #: 703-978-6784 Sender Fax #: 703-978-6785 You should receive _.22 pages, including thh cover sheet.. If you do not receive all the pages, please call the number above.

COMMENTS:

Dear Mr. Powell,

Attached you will find our FOIA request along win the referenced NRC documents. As you will note in our letter, we are under a time constrair,t to issue our response to an NRC Notice of Violation. The requested informat.lon is critical to our response. If there is any problem in obtaining the information roguested in time to meet our deadline, please call me right away. Also, I would prefer to pick up the information rather than have it go by mail. Could you please call me when it is availabic?

If you have any questions, pleate do not hesitate to call. Your pmmpt response is appreciated.

Si ly, Anita M. Parker for James R.TourtcIlotte

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{ FA 96-135 j EA 96-170 l Innovative Weaponry. Inc.

ATTW

Mr. Davfd Gregor, President

337 Eubank NE j Albuquergue New Mexice 47123 1

! SUSJECT:

NOTICE OF VIOLATION AND PA0 posed IMPOSITION.0F CIVIL. PENALTY

• j $7,5C: Alm j

< CONFIRMATORY ORDER N00!FYING LICENSE (EFFECTIVE IISIEDIATELY)

NRC Investigation Report No. 4-95-022)

Dear Mr. Gqegor:

This refers to the predecisional enforcement conference conducted on April 23, 1996, with you and other Innovative Weaponry, Inc. (!WI) representatives in the NRC's offices in Rockville, Maryland. A list or conference attendees is enclosed (Enclosure 1).

The conference was conducted to discuss apparent violations identified during j an NRC investigation conducted between May 9, 1995 and March it. 1995. These i apparent violations astellastheconcernthatt$eymayhavebeencaenitted j willfully by company, officen we j representativeonAprilll,IN,rediscussedbytelephonewithanIWI and were brlefly described in a letter sent l to IWI on April 17, 1996.

Based on the informatten developed during the investigation and on our considerettor, of the inferention that you provided during the coeference, the

NAC has deterained that violations of Inc requirements occurred. These ,

violations, viiich IWI admitted at the conference, are sited in the enciesed flotice of Violatten and Proposed lagesition of Civil penalty (Enclosure 1).

Specifically, the IRC concludes that IWI distributed licensed material, i.e.

tritium, in various guesights that more not approved by the W and not ,

authorized on the license and that IWI distribisted tritium sources that were '

ettained from a manufacturer not autbrized on the license.

i At the conference, IWI officials admitted that violations had occurred but i denied that there was any intent to ceamit them. Ilotwithstand19 the i Licensee's position en intent, the NRC is concerned that the vie ations 4

resulted from a lack of effective action to assure compliance with license

!, requirements, despite Iv! officials being aware that the lutC license contained 4

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! limitations on what could and could not be distributed. This awareness shou have prompted IWI to make certain that it both understood and was conducting 4

fts business in compliance with the license while it was seeking to amend ft.

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3 Tr.:s, even though these violations did not result in any actual safet/

1 impacts, they are nonetheless significant from e regulatory standpoint.

Therefore, the violations in the enclosed fictice have been categorized as a Severity Level III probles in accordance with the "Genertl Statement of Policy t

and Procedure for tutC Enfonement Actions" (Enforcement M1tep). IIUREG-1600.

s In accordance with the r nforcement Policy, a base civil penalty in the amount of $2.800 is considered for a Severity Level III problem. In this case given I management's failure to assure that requirements were met and that the license i was understood. I have been authorized, after consultation with the Director, i Office of Enforcement and the Deputy Executive Director for leuclear Materials I Safety, Saftguards and Operations support, to exercise discretion pursuant to j section sr soo. VII.A.1 of the Enforcement Policy and propose a civil penalty of l

At the conference and at the licensing meeting that followed it, IWI officials voluntarily made verloos ceamitments to correct these violations and to assure' that future operations will be conducted in strict accortlance with the license conditions. These commitments included the development of a training progres j for all IWI agloyees whose activities any affect cowlf ance with flRC 3

1 requirements, and the hiring of a third-party independent auditor to develop i l

j an audit plan and condest periodic audits of IWI to assure continued i casoliance with all IIRC requirements. These commitments are described in more I

detail and are confirmed in the enciesed Confirmatory Order fledifying License.

j Pursuant to section 223 of the Atomic Energy Act of 1954, as amended, any i person who willfully violates, attempts to violate, or conspires te violate, any provision of the enciesed Order shall be subject to cristnal prosecution i

as set forth in that section. Violation of this order any mise subject the person to civil monetary penalty, i

You are required to respond to the flotice and the enciesed Order and should follow the instructions im each when preparim your response. In your i

response to the lletice, you should dos.aent tw specific actions taken and any i additional actions you plan to prevent recurrence. After mviewing y response to this llettee, including your proposed corrective actions and the results of future inspections, the INIC will deterutne whether further IRC 3

enfertement action is necessary to ensure compilance with IIRC regulatory j requirements.

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this letter, its enclosures, and your response Public Document Room (POR).

itinclude anyinpersonal c)n be placed th PDA without Drivacy, redaction.proprietary, or safegu,ards 51ncereiy, ge p(-

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/,

ames Lieberman Director frice of Enforc,ement )

Docket No. 030-30266 License No. 30-23697-01E

Enclosures:

1.

2. Conference Attendance List

3. Confirmatory Order Modifying LicenseNotice of Violation an 1

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State of New Mexico a

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ENCLOSURE 1 I

Fa5DDOISIcemL agircacamur coety a Aylsos LICE 3tss3/ FACILITY Innovative Weaponry. In_c. of Nevada  !

IST3/ TIN 3 April 23, 1996 / 9 a.m. EDT iiiifING IhcATION _NRC H0. Aockville, Naryland Eh NUBEBEst 96-135 NW ONMNIZATION TITLE David Gregor IWI of Nevada Presidont Patricia Wilson IWI of Nev4da Executive Vice President Kenneth Wilsen IWI of Nevada Consultant James Tourte11otte Representing IWI of Attorney i

_ Nevada James Lieberman NRC Director Office of Eriforcement

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Geoffrey Cent l

NRC Enforcentst $pecta11st,4ffice of Enforcement

! Larry W. Casper NRC Chief, Medical Academic and 1

l Commeretal Use Safety tranch i I

i Susan Greene NRC Nedical, Academic and Cosmarcial Use '

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_ ._ Safety tranch j Nichael Rafty NRC Office of the General Counsel  !

Jeff Bartlett NNC Office of the General Counsel Linda Howell IWIC, Region IV Calef. Nuclear Materials Inspection '

and Fuel Cycle / Decommissioning j -

Branch j Cary Sanborn NRC. Reglen IV Enforcement Officer 2

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l NOTICE OF VIOLATION i AND l

PROP 0$fD IMPOSITION OF CIVIL PENALTY

{ innovative Weaponry, Inc. of Nevada

( Albuquereue, New Mexico Decket No. 030-30266 i License No. 30-23697-01E (A 96-135 i

! During an NRC investigation conducted between May 9, 1995 and March 22, 1996, vietations of NRC requirements were identified. In accordance with the i

" General Statement of Policy and Procedure for NRC Enforcement Actions,*

j NukEG-1600, the violations are listed below:

A.

License No. 30-23697-ele authorizes the licensee to distribute $28 l Technologies, Inc., Nedel PRN-800/6/200 sealed light sources.

j Contrary to the above from June to August 1995, the 11censee distributed tritium se,aled light sources from a manufacturer sot

. authorized in the license. (01013)

B.

License Condition 10 of License No. 30-23697-ole authorizes the licensee to distribute sealed light sources in specified gunsights and in specified configurations.

Centrary to the above, from July to Septamber 1995, the licensee distributed tritium sealed itsht cources in configurations not specified er othemise authertred in the 11 case. (01023)

These violations represdat a Severity Levei !!1 problem (Supplement VI).

Civil Penalty - $7,500.

Pursuant to the provistens of 10 CFR 2.201, Innovative Weaponry, Inc., is hereby required to submit a written statement er amplanatten to the Director.

Office of Enforcement, U.S. Nuclear Regulatory Coumission within 30 days of the date of this Notice of Violatten and Proposed imposition of Civil Penalty (Notice). This reply should be clearly serked as a "Asply to a Notice of violatten' and should include for each alleged violation:

denial of the alleged vleistion (t) the reasons for the vio(1) seeission lattee if er admitted, and if denied the reasons why, (3) the corrective steps that have beentakenandtheresultsachieved.(4)thecorrectivestepsthatwillbe taken to aveld further violations, and (5) the date when full coup 11:. a will be achieved. If an adegoate reply is not received withis t,he time specified in this Notice, en order er a Demand for Information any be issued as to why the license should not be modified, suspended, or revoked or uhy such other action es may be proper should not be taken. Consideraties may be gives to espar. ding the response time for good cause shown. Under the authority of Section Itt of the Act, 42 U.S.C. 2232, this response shall be submitted under oath er affirisation. J Within the same time as provided for the response required above under 10 CFA 2.201, the Licensee any pay the civil penalty by letter addressed te the Director, Office of Enforcement, U.S. Nuclear Regulatory Cassission, with a check, draft, money order, or electronic transfer payable to the Treasurer of the United States in the amount of the civil penalty proposed abeys, er the 9etfmsrY. w.

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3 cumulative amount of the civil penalties if more than one civil penalty is l proposed, or may protest imposition of the civil penalty in whole or in part,

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by a written answer addressed to the Director. Office of Enforcement, U.S.

i Nuclear Regulatory Commission. Should the Licensee fall to answer within the i time specified, an order imposing the civil penalty wf11 be issued. Should the Licensee elect to file an answer in accordance with 10 CFA 2.205 l protesting the civil penalty, in whole or in part, such answr should be j

clearly marked as an " Answer to a Notice of Violation

• and say: (1) deny the violation (s listed in this Notice, in whole or in part, 2 extenuating) circumstances, (3) show error in this Notice,(or) (4) shaw other demonstrate s

reasons why the penalty should not be leposed. In addition to protesting the civil penalty in whole or in part, such answer may request remission or "

mitigation oF the penalty.

In requesting mitigation of the proposed penalty, the factors addressed in Section VI.B.2 of the Enforcement Polfry should be addressed. Any written answer in accordance with 10 CFR 2.207 should be set forth separately from the statement or explanation in reply v suant to 10 CFR 2.201, but may incorporate parts of the 10 CFR 2.sl reply by specific reference (e.g.,

citing page and paragraph numbers) to avoid repetition. The attention of the Licensee 's directed to the other provisions of 10 CFR 2.205, regarding the precedure for imposing a civil penalty.

Upon failure to pay any civil peralty due which subsequently has been determined in accordance with the applicable provisions of 30 CFR 2.205, this matter may be referre@ to the Atteney General, and the penalty, unless compromised, remitted, or attigated, may be collected by civil action pursuant to section 234c of the Act, 42 U.$.C. 2282c.

The response noted above (Reply to Notice of Violation, letter with payment of civil : penalty, and Answer to a Notice of Violation) should be addressed to:

James Lieberman, Director. Office of Enforcement, U.S. Nuclear Regulatory Cennission, One White Flint North,11555 Rockville Pike, Rockville IS 20052-2738 with a copy to the Regional Administrator, U.S. Nuclear Regulatory CeamIssion,RorianIV.

Because your res use will be placed in the NRC public Document been '.*0k), to the entent possiple, it theuld not include personal privacy totary, or safeguards informai.ien so that it can be aced in the FOR wt redacties. However, if nu find it necessary to include such information, you should clearly indicate he specific information that you desire not to be placed in the pDR, and provide the legal basis to support your roguest for withholding the information free the public.

Dated at Reckville, Maryland this / W ay of May 1936

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1 UN!TED STATES NUCLEAR REGULATORY C00e(15$10N l

' In the Matter of )

) Docket No. 030-30266

Innovative Weaponry, Inc. ) License No. 30-23697-01E 1 Albuquerque, New Mexico ) EA 96-170 l

l CONFIMATORY ORDER M00!FYING LICENSC (CFFECTIVE If9fE0!ATELY)

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Innevative Weaponry, Inc. of Nevada, (IWI or Licensee) is the holder of NRC License No. 30-23697-01E issued by the "uclear Regulatory consission (NRC or Consission) pursuant to 10 CFR Part 30. The license authorizes the Licensee j to distribute byproduct material (i.e., tritius) in gunsights as specified in the license. The license was transferred from IWI of New Mexico to IWI of h vada on Aprt) 3, 1995. Although due to expire on June 30, 1993, the license has remained active based on 4 timely renewal application.

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11 i Sased on its review of the results of an NRC investigation conducted from May 9, 1995, through March it. 1996, the NRC identified the fo11 swing apparent violations of IWl's license condittens: 1) IW1 distributed tritium in gunsights not approved by the IstC and not specifically autherised on the license; ardi 2) IW. distettuted tritium sourcss obtained from a annufacturer not authorized on the license. In addition, as indicated in a letter issued to IWI en April 17, 1996, it appeared that the violations were committed by the President and Executive Vice President of the company.

_ " _ _ _ _ _ _ _@ ^ !?G itf. These annarent winiatiane and he enarara + ;.a t t ha w

==m e= eamattted hv the

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! 1* ' , President and Exec ive Vice President were discusse with Iv! representatives e

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at a predecisional enforcement conference in Rockville, Maryland on April 23, i 1996.

The Licensee admitted that violations had occurred but dented that j

there was any intent to commit the violations. Notwithstanding the Licensee's Position on intent, the NRC is concerned that the violations resulted from a i

1 lack of effective action to assure compliance wtth license requirements, despite IW1 officials being aware that the W license contained limitations on what could and could not be distributed.

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As a result of the NRC*1nvestigation, the NRC staff questioned whether it should have the requisite reasonable assurance that IWI will comply with I.

i agency requirements. At the predecisional enforcement conference and a meeting on the same da k to discuss Itcense amendment issues, the Licensee voluntarily committed to actions to address the NRC's concerns about its ability to conduct its activities in compliance with the license and

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applicable NRC requirements. The Licensee offered to develop the following j

1 plans and to submit them to the E for approval: 1) a training plan to assure l that all IW1 employees, including management, unoerstand the NRC license and j applicable K requirements; 2) an audit plan to assure compliance with j requirements to be toplemented by a third-party, independent auditar; and a

1) development of written procedures to mainta,in acceentability, control, and security of materials authorized by the NRC for distribution. The E has

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concluded that implementation of these ceamitments, which are describoj in 4

more detail below, would provide the necessary assurance that licensed i activities will be in compliance with NRc requirements in the future.

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3 I find that the Licensee's comettaents set forth at the predecisional enforcement conference and licensing meetings conducted on April 23, 1996. are acceptable and necessary and conclude that with these comaltments health, safety and interest are reasonably assured.

In a telephone call on May 8, Ipp6, with Mr. James Tourte110tte, the Licensee's , the attorney Licensee agreed to this action.

I have also determined, based on .ne Licensee's consent :.74 en the significance of the conduct describe

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l that the public hea th and safety require that this Drur be immediat

effective.

IV Accordingly, pursuant to sections 81,141b,1611,1618, 182 and 188 of the Atomic Energy Act of 195,6, as amended, and the Commission's regulatio

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10 CFR 2.202 and 10 CFR part 30, IT !$ HEREBY OECEftED, EFFEC TMT LICEII5E No. 36-23697-01E 15 MOO!FIED AS FOL.L.0W$:

1.

The L,1censee shall submit for NAC approval, within 30 days of the issuance of this Order, a training plan designed to assure that all IWI employees, including management, who are involved in activities that ma l affect compliance with the hitt l'.:ense are familiar with the condit1*as and restrictions contained in the license, as well as with all other applicable HRC requirements. The training plan also shall provide for i

training in acceentability, centrol, and security of licensed notetti in gensights authorized by the NRC N' distrib9 tion te persons exespt from itcensing. The training plan shall provide for initial training of

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, refresher training thereafter.

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2.a. The Licensee shall submit for M C approval, within 30 days of the data s

3 of this Order, the name and qualifications of an independent auditor or audKorswhomtheLicenseeproposestoconducttheauditsdescribed below and who are capable of conducting such audits to assure cow 11ance i

with all NRC license conditions and requirements, i

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b. The Licensee shall submit for MC approval, within 30 days of the NRC's g soproval of the gbove auditor, an audit plan which shall provide for j p riodic audits to assure compliance with all NRC license conditions and 4

] requirements. The audit plan shall provide for an initial audit, I

followed by guarterly audits for a 1-year period, and semi-annual audits thereafter. The audit plan shall prove for audit reports to be issued 4

{ to the Licensee and the NRC at the same time within 30 days of the j

cespitstion of eacn audit. The audit report shall contain findings on i

j L f.icensee's state of compilance with MC requirements and i

j recaemandations to achieve compliance if deficiencies are noted. The i

2 plan shall provide for the Licensee to respond in writing to all audit J

j findings within 30 days of each auct'. report, with a copy to the NRC.

1 2

The response shall state the actions taken by the licensee to address 4 edit recommendations with which the Licensee agrees. For those

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) recosamendations that the Licensee d..putes, the Licensee shall provide the basis for dispute and any other action taken.

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3. The Licensee shall develop and implement, within 30 days of the issuance of this Order, written procedures designed to maintain i.'.ventory and accountability o.* gunsights with sources authorized by the NRC for distribution to persons exempt from licensing.

i d

4. Upon approval of the actions required under items 1 and 2.4 above, items 1 and 2.b shall be implemented until relaxed by the Regional l Administrator, Region IV.

j 5. Requests for approval of the auditor, audit plan, training plan, and for 1

changes of the apdroved auditor, changes to the audit plan, and to reports required to be submitted, shall be submitted to the Regional Administrator, Region IV, with a copy to the Director Office of Nuclear Materials Safety and Safeguards.

The Regional Administrater, Reglen IV, may relax or rescind, in writtng, any of the deve conditions upan a showing try the Licensee of good cause.

V.

Any person adversely affected by this Confirmatory Order, other than the Licensee, any request a hearing within 20 days of its issuance. ilhere good cause is shown, consideration will be given to extending the time to request a w , . . , - ~ , ~ , , . . . _ , , -, ~ , ..

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-6 hearing. A request for extenston of time must be made in writing to the Director. Office of Enforcement, U.S. Nuclear Regulatory Ceanission Wash lngton, D.C. 20555, and include a statement of good cause for the extension.

Any request for a hearing shall be submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN: Chief, Docketing and Service section, Washington, D.C. 20556. Copies :1so shall be sent to the Director, Office of 2nforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, to the Assistant General Counsel for Hearings and Enforcement at the same address, to the Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, 5uite 400, Arlington, Texas 76011, and to the Licensee. If such a i

i person requests a hearing, that person shall set forth with particularity the manner in which his interest is adversely affected by this Order and shall eddress the criteria set forth in 10 CFR 2.714(d). '

If a hearing is requested by a person whose interest is adversely affected, the Consission will issue en Order designating the time and place of any hearing.

If a hearing is held, the issue to be censidered at such hearing shall be whether this Confirmatory order should be sustained.

- 4 Pursuant to 10 CFR 2.20t(c)(1)(1), any person other than the Lic.asse, adversely affected by the Order, any, in addition te demanding a hearing, at the time the answer is filed or sooner, move the presiding officer to set asi6e the immediate effectiveness of the Order on the ground that the Order, including the need for famediate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded allegations, or error.

- - . - - - - . . . . - . . - . _ . . . _ _ - . = - . . - - . _ . . - - . _ - . . - - . - . _ - - - .

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-T-In the absence of any request for hearing, or kritten approval of an extension l

j of time in which.to request a hearing, the provisions specified in Section IV

) above shall be final 20 days from the date of this Order without further order

er proceedings. If an extension of time for requesting a hearing has been i

approved, the provisions specified in Section IV shall be final when the

~

j extension expires if a hearing request has not been received. All AllSWER OR A

)i REQUEST FOR HEARING SHALL NOT STAY THE~llWE0! ATE EFFECTIVENESS - O i

FOR THE IIUCLEAR REGULATORY C01stIS$10N

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! James Lieberman, Director Office of Enforcement 1'

Dated at Rockville, Maryl,and

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Innovative Weaponry. Inc.

SISTRIBUTION: e NSLIC

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CPaperiello,letS5 i DCool,10155 (8F5) (8423)

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i ag 1 y k UNITED STATES l 2 S NUCLEAR REGULATORY COMMISSION i

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! 21st tentury Technologies, Inc.

l ATTN: Ms. Patricia Wilson 3

president l

j 337 Eubank NE '

Albuquerque, New Mexico 87123 l

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Dear Ms. Wilson:

4

! Enclosed is Asei.dment No. 05 renewing your Nuclear Regulatory Commission Lfcense No. 30-236g7-01E in its entirety.

i on May 8,19M, Tusan Greene of sty staf f, Geoffrey Cant of the Office of ,

i Enforcement, and I spoke with your counsel, Mr. James Tourte11otte, concerning ]

! the commitments outlined in our proposed confirmatory order and the pending .

11 conte amendment. It was noted that this license amendment is being issued i based on, and in conjunction with, cosesitments made by 21st Century

Technologies. Inc. (previously known as IWI) during the predecisional j enforcessat conference and licensing meeting conducted on April 23, 1996. The proposed commitments in the Confirmatory Order were reviewed with, and substantially agreed upon by, Mr. Tourte11otte and, briefly, are as follows

i 1. The Licensee will submit a training plan to assure that all IM

! employees involved in activities associated with the NRC license are familiar with the license and its conditions, and with all applicable NRC regulattens.

t j 2.a. The Licensee will submit the name and qualifications of an independent third-party auditor to conduct audits.

2.b. The Licensee will submit an audit plan providing for periodic audits to assure compliance with all NRC license conditions and requirements.

3. The Licensee will develop and implement written procedures concerning the inventory and accountability of gunsights containing licensed material authorized by NRC for distribution.

These censituents, in detail, will be forwarded shortly under separate cover in the Confirmatory Order Modifying License No. 10-13697-01E. .

Please review the enclosed license carefully and be sure that you understand

. all the condittens. If there are any errors or questions, please contact me so that appropriate corrections and answers can be provided.

A'w LOK 5G5i By.

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! p. idilson  !

I please be advised that you must conduct your program involving radioactive i materials in accordance with the conditions spec' fled in your NRC license, i

' representations made in your license application, and other rules, regulations, and orders of the U.S. Nuclear Regulatory Commission, now or hereafter in effect, to include the following:

j. 1 Comply with applicable NRC regulations in 10 CFR part 30, " Rules of

General A

! Port 32, pSpecific Domestic Licenses to Nar.ufacture or Transfer certainlic; l Items Containing Byproduct Material"; and other applicable regulations.

s l NOTE: Licensees authorized to distribute or initially transfer. products  !

j containing byproduct material must also possess a valid possession license l 3 issued either by NRC or an Agreement State (s) which authorizes possession l and use of byproduct material. 1 4

l

! 2. Distribute only those products containing radioactive material which are l specifically authorized in your license.

3. Notify NRC in writing within 30 days of any change in mailing address (no fee is required if t4 location of radioactive material rema' ns the same).

4. Request and obtain appropriate amendments if you plan to change control or ownership of nur organizatten, change points or locations of distribution of products containlog radioactive material, or make any other changes in your program which are contrary to the license conditions or mpresentations made in your license application and any supplemental correspondence with NRC. A license fee may be charged for the amendments if you are not in a fee-exempt category.

5. Submit a coglete renewal application (with proper fee) or temination request (no fee twquired) at least 30 days before the expiration date on your license. You should receive a reminder notice approximately 90 days before the expiration date. Continued distribution of products containing radioactive material after your license expires is a violation of NRC regutationa.

6. In accordance with 10 CFR 30.36, request torsination of your license if you plan to perennently discontinue activities involving distribution of Products containing radioactive material.

You will be periodically inspected by MRC. Failure to conduct your program in compliance with NRC regulations, license conditions, and representations made in your license application and supplemental correspondence with NRC may result in enforcement action (s) being taken against you. This could include issvence of a notice of violation; proposed imposition of a civil penalty; or

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P. Wilson an order suspending, modifying, or revoking your licensa as specified in NUREG-2600, " General Statement of Policy and Procedures for NRC Enforcement l Actions," (50 FR 34381, June 30, 1995).

If you have any questions, please contact Ms. Susan Greene at (301) 415-7843.

Sincer

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Lorry W Casper, Chi edica", Academic, Commercial

Use 1,afety Branch r

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Division of industrial and Medical Nuclear Safety l

Office of Nuclear Material Safety j and Safeguards Docket No. 030-30166

Enclosure:

Amendment No. 05 I cc: 8enito Garcia, Chief Bureau of Nazardout and Radioactive Materials

$25 Camino de les Marquez P.O. Box 24110 Santa Fe, New Mexico 87502

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• paos s. *AMs l AfATERIALS LICE.NSE Amendment No. 05 h' N~

Pun 94nt so the Atorric F.ncrr) Act ef !934. as amended. :he P.ne:33 lte.trpan:tatt:

Tedent Regul,ikas. Chap ^cr I. Parts 30,31. 3 . 43. 34. .V. .% s .t9. *. and 0. ano in relian e on .tem by $e lictoser a liter.se at hereby iu ued wthori/ingthe Iktnset t? retene. acquire, possess. and transfer byprodVCt. 60Cfre. and special nuclehr i material designated below; to erle such wisterial (M ehe purpose.s 6 and at the piwets) deeignased below; :o deliver or transfer such material in l l

peryval authurfred to recche is in a4wfdaxc mith the reputat!ons ofinc appikable Partis). This !acense shtt! bc dcctned 50 contain the conditions 1 specified in Section I$3 of the Atomic Energy Act of 1954. as arnended. and as subject to all app 3 cable niles. regulations. and orders of he 1 Nuclear Mcgulatory Commission now or hereafter la cfToc: and to any condissoas specided below.

l In accordance wf th letter dated 3-21st Century Technologies, Inc. 3L

• e 30-13697-01E t: renewed in ll gl 2.

f ts entirety in rand mz fallnaect I 337 Eubank NE Albuquerque, New Mexico 87123 ' W* May 31. 2001 _.

5. Docket ur f

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Rcrcrunce No. 030-30266 gl

6. B) product. Source, and/or l

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SpecialNuclear Masenal

7. Chetnical anWar Physica!

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8. Mastenian Amount that Licennec May Panness et Any One Time l

l y t UnderThis License  ;

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[ A. Hydrogen-3 A. $aaled Light Sources Not applicable. I l A.

I (SR8 Technologies, Inc.

f (See Condition 10) II Model PRH-800/8/200, and I Lusitec Models CL/1,5/4,85 I I s and CL/0,95/3,3) I

( e I Authorized Use I

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( pursuant to Section 32.22, 10 CFR Part 32, the )icensee is authorized'to distribute I I only those luminous gunsights containing sealed light sources identified in Condition I

! I 7 A. above, whether er not sounted on a weapon, identified in Condition 10 of this I l  ; iteense to persons exempt free the requirements for a license pursuant to section I l l 30.19, 10 CFR Part 30, or equivalent provisions of the regulations of any Agreement I l State. I  !

l q CONDITIONS I i y I i l 10. The approved gunsights are limited to the following model designs and attachments as l l listed in Reglstration Certificate No. NR-365-D-101-E: 1 i t l l i i The Model CGF003 is a front " dot" sight designed for Colt pistols (see Attachments 3 I J g and 14). I '

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l: g The Model C4R030 is a rear 2

• dot

• or "bar' sight designed for Colt pistols (see I L: Attachments 4, 12, and 13). I i

g I g The Model GKF001 is a front " dot" sight designed for Glock pistols (see Attachments 5 1 g and 14). I L l t The Model GKR010 is a rear 2 " dot" or "bar" sight designed for Glock pistols (see I.

Att 8i 4e*g* uv.achments 6,12 and 13). _ __ . _ . .--

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j N C$s= U4A U.s. NUCLEAR REGULATOAY Coe4W1Sslo4

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CONDITIONS 'l 2

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The Model SSF002 is a front " dot

• sight designed for Sig-Sauer pistols (see I

, Attachments 7 and 14). }l l Il j l The Model SSR020 it a rear 2 ? dot" or "bar" sight designed for Sig-Sauer pistols i j

l (see Attachments 8, 12, and 13). I i 1. The Model SWF004 is a front " dot" sight designed for Smith and Wesson pistols (see l l Attaciuments 9 and 29).

! I

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The Model SWR 04C is a rear 2 ' dot" sight designed for Smith and Wesson pistols (see i j Attachments 10 and 29). I l 8 i i

I The Model SWR 041 1s a rear "bar" sight designed for Saf th and Wesson pistols (see l

i Attachments 11 and 28).

I l The Series 100 is a single ' dot" front sight (see Attachment 17).

l i I l The Series 200 is a 2 " dot' rwar sight (see At,tachiment 18). ;,

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The Series 300 is, a sp *bsiF* rear pfgipt',.(el,ii,e' At,tachment t's). .

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The Series 400 is a recessed, single 'ter* rear si (see,Tfittachment 20). 'l

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". .. .Q :. ..a f. "1 ; v . 0..'Att The Series $00 is a,'"t "bar re,ar, sight,(toe j i J

- t nt 2Q.'.'u.

I I The Series 600 is a e60essed. 2 "bar" rear sigh (seeA(technent22).

. I ' ;. ., A The Series 700 is a 3 'bar* rear sight (see Attachesit 3). j l

j I TheSeriestooisa3*bar'rharsights(sed.At choent24).

4 I lI i I The series 9ou 1s t 2 ' dot," single "bar* rear sight (see Attachment 75). 'I I I

! Series 200 - 900 rear sights have a notch cut out for lining up the front sight in j

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either of the two configurations shoe in Attachment 15. ,1 1

11 IL 11.a. No ' dot

• or 'bar" tritium light source listed in Condition 7. A. may contain more il I than 30 millicuries. 11 I

I 11.b. No combination of ' dot" or "bar* tritium light source listed in Comittion 7. A. j J

or any set of sights distributed for use on a single weapon may contain more than ,

l l 90 stilicuries. l l l1 12 This license does not authorize possetsion or use of ifcensed material. l i.

. .. . _ _ = = _ _ - . - -. _ .. . - . - -. -. - -

u. usea:ea useries snco we omrieusvu unis re um see. . ac...= . .esi. 4 ". .c.w ..

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j lt 30-23697-01E A

E MATERIALS LICENSE Ti= 6: w Mem e .w y l lj SUPPLEatENTARY SH8EET 03C-30266 a

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( _ _ _ Amendment Ne. OS I CONDITIONS I

(Continued)

14. The licensee shall file periodic reports as specified in 10 CFR 32.25(c).

~ 15. The licensee shall, In writing, inform the Director, Office of Nuclear Material

$afety and $afeguards, at least 15 days before Mr. Barry Mowry becomes involved in any activity euuhorized pursuant to this Ifeense.

I 16. Except as specifically provided otherwise by this ifcense, the ifcensee shall conduct I its program in accordance with the statements, representations, and I contained in the documents, including any enclosures, listed below.The procedures U.S. Nuclear i Regulatory cosmission s ragulations shall govern unless the statements, I representations, and procedures in the licensee's application and correspondence are I more restrictive than the regulations.

I i A. Letter dated March 1, 1996; I 5. Letter dated March 4, 1996; 1 C. Facsimile received February 29, 1996; I D. Facsin{1e received April 29, 1996; and l E. Reghtcation Certificate No. NR-365-D-101-E I

I FOR THE U.S. NUCLEAR REGULATORY C0f9t!5$!0N I

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DATE: T /N BY: Ah! # --

I y / - L4rry Caiper, Chief I

@Useic , Academic, and Commercial I afety Branch

{ Division of Industrial and i

Medical Nuclear Safety i

Office of Muclear Material safety i and Safeguards i Washington, DC 20555 I

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