ML20134H529

Fifth Partial Response for Requested Documents.App E Record Being Withheld in Entirety (Ref FOIA Exemption 5)

ML20134H529
Person / Time
Issue date:	10/24/1996
From:	Powell J NRC OFFICE OF ADMINISTRATION (ADM)
To:	Tourtellotte J TOURTELLOTTE, ROSS & GRAY
References
FOIA-96-246 NUDOCS 9611140135
Download: ML20134H529 (3)

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/l/L/ #OU FOIA 246 RESPONSE TYPE

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t RESPONSE TO FREEDOM OF l FINAL l Xl PARTIAL (bthj l

INFORMATION ACT (FOlA) REQUEST s

DATE

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.0CI 2 41995 e

DOCKET NUMBE R(S)(//apphcable)

REQUESTER James R. Tourtellotte PART l.-AGENCY RECORDS RELEASED OR NOT LOCATED fSee checkedboxes/

No agency records subject to the request have been located.

N3 additional agency records subject to the request have been located.

Requested records are available through another public distribution program. See Comments 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., Washington, DC.

Agency records subject to the request that are identified in Appendix (es) are being made available for public inspection and copying d 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 proposa!(s) that you agreed to accept in a telephone conversation with a member of my staff is now being made available for public inspection and copying at the N RC Public Document Room,2120 L Street, N.W., Washington, DC, in a fcider under this FOI A number.

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

Enclosed is information on how you may obtain access to v.d thr, charges for copying records located at the NRC Public Document Room,2120 L Street, N.P, Washington, DC.

Ac-ords subject to the request are enclosed.

RA 4 subject to the request have been rek' red to another Federal agency (ies) for review and direct response to you.

Fees You will be billed by the N R C for fees totaling S You will receive a refund from the NRC in the amount of S in view of N RC's response to this request, no further action is being taken on appeal letter dated

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

COMMENTS N

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TOURTEL96-246 PDR N

NRC FORM 464 (Part 1) (191)

FOIA NUMBEK(s)

DATE RESPONSE TO FREEDOM OF INFORMATION ACT (FOIA) REQUEST FOIA 246 g g 4 gggg (CONTINUATl!N)

PART 11.5-APPUCABLE EXEMPTIONS Pecords subject to the request that are descrioed in the enclosed Appendix (est E are being withheld in their entirety or in part under the Exemption No.(s) and for the reason (s) given below pursuant to 5 U.S.C. 552(b) and 10 CF R 9.17(a) of N RC regulations.

l1, The withheld 6nformation is pro:wrty classified pursuant to Executive Order. (Exemption 1) a

2. The withheld mformation relates solely to the mtemal personnel rules and procedures of NRC. (Exemption 2) l3. The withheld mformation is specifcally exempted from pubhc disclosure by statute indicated. (Exemption 3)

Sections 141 145 of the Atomic Energy Act, which prohibits the disclosure of Restricted Data or Formerly Restricted Data (42 U.S.C. 21612165).

Section 147 of the Atomic Energy Act, which prohibits the disclosure of Unclassified Safeguards information (42 U.S.C. 2167).

4. The withheld information is a trade secret or commercial or financial mformation that is bemg withheld for the reasants) jndicated. (Exemption 4)

The information is considered to be confidential busmess lproprietary) mformation.

The information as considered to be proprietary mformation pursuant to 10 CFR 2.790 ldh 11 The mformation was submitted and received m confidence pursuant to 10 CFR 2 790(dH2)

EThe withheld information consists of mterapmscy or mtraagency records that are not evadable through discovery during litigation (Exemption 5). Appbcable Privilege:

1{5 Dehberative Process. Disclosure of predecisional mformation would tend to mhsbet the open and frank exchange of ideas essential to the deliberative process.

Where records are withheld m their entirety, the f acts are mentrCably mtertwmed with the predecisional mformat on. There also are no reasonably segregable factual portions because the release of the facts wouH permet en mdirect mquiry mto the predecisional process of the agency.

Attorney work product privilege (Documents prepared by an attorney in contemplation of litigaton I

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Attorney-chent privilege. (Confidential communications between an attorney aad his/her client.)

6. The witnhold mformaten is exempted from public disclosure because its disclosure would result in a clearly unwarranted mvasen of personal pnvecy. (Exemption 6)

7. The withheld information consists of records compiled for law enforcement purposes and is b.ing withheld for the reason (s) mdicated. (Exernption 7)

I Disclosure could reasonably be expected to interfere with an enforcement proceeding because 11 could reveal the scope, direction. and focus of anforcement efforts, and thus could possibly allow recipients to take action to sbiald potential wronpoing or a violation of NRC requirements from invest Dators. (Enemption 7 (A))

Disclosure would constitute an unwarranted invasen of personal privacy. (Exemption 7(C))

The information consists of names of mdividuais and other mfo mation the disclosura of which could reasonably be espeCled to teveal identitles of confidential sources. (Exemption 7 (D))

1OTHEH PART ll. C-DENYING OFFICIALS Pursucnt to 10 CF R 925(b) and'or 9 25(cl of the U S. Nuclear Regulatory Commission regulations, it has been determined that the information withheld is exempt from pro-duction or disclosure, and that its product on or dmclosure is contrary to the pubhc mterest. The persons responsible for the denial are those officials identified below as denying off:cials and the Director, Division of Freedom of information and Pubhcations Services. Office of Administration, for any den,als that rnay be appealed to the Executive Director for Operctions (EDOL DENYING OFFICIAL TITLE / OFFICE RECORDS DENIED APPELLATE OFFICIAL Associate General Counsel for em seem o

Ste hen G. Rurns Hearinas. Enforcement and Aopendix E Y

Administration l

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PART 11. D-APPEAL RIGHTS

The omici by each denying official identsf.d in Part ll.C may be appealed to the Appellate Official identified there. Any such appeal must be made in writing within 30 days of receipt l cf this responsa. Appeals must be addressed as appropriate, to the E xecutive Director for Operations. to the Sacretary of the Commission, or to the inspector General. U.S. Nuclear

, f.egulatory Commission, Washington, DC 20655, and should clearly state on the envelope and in the letter that it is an Appeal from an initial FOI A Decision."

2 NZC FERM 464 (Part 2) (191)

U.S. NUCLEAR REGULATORY COMMISSION

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APPENDIX E (RECORD WITHHELD IN ITS ENTIRETY) 1.

2/21/96 Conference Call IWI of Nevada (11 pages); attaching IWIN/21st Century Technology, Inc. (4 pages); Draft letter to Innovate Weaponry,. Inc. from James Lieberman

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Subject:

Notice of Violation and Proposed Imposition of Civil Penalty (11 pages) OGC Enforcement Control Sheet for Draft Recommended Enforcement Action - IWI (EA 96-135) (17 pages) EX. 5 1

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L Mr. Russell A. Anwell, Director FREEDOM 0F INFORMATION

"' "'"""" "U'T Freedom ofinfonnation and Publication Services Office of Administration ACT REQUEST U.S. Nuclear Re ul Commission Io:rA -9 N N Washington, D..

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Reference:

Freedom ofInfonnation Act fax request I) ear Mr. Russell, l

This is a Freedom ofInformation Act request for documents and computer disks pertaining to an l

NRC caforcement action entitled, Notice of Violation and Proposed imposition el Civil 1%nalty -

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$7500., and Confirmatory Order Modifying IJcense (effective immediately) (NRC Investigation Report No. 4-95-022). This action is taken by the NRC against innovative Weaponry,Inc. (IWI) with notification being posted May 15,1996. Copbs of the enforcement and licensing documents are attached for reference purposes, i

The documents requested include:

1. NRC Investigation Repoet No. 4-95-022 and exhibits.

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

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

a. Name oflicensee company

b. Address ofliceprice company

c. Phone and fax numbers oflicensee company l

d.1.icensee contact person l

c. Date each came was opened

f. Dates of site visits

g. Names of all persons interviewed by investigator in cach case

h. Date each case was closed I. Recommended actions of investigatorin each came J. Enforcement action taken in each came

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

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

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a. A list of dates of inspections for the 5 years preceding this requ<:st and the name of the NRCinspectors.

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b. A list of dates ofinvestigations for the 5 years preceding this request, the name of the investigator, action recommended by the investigator and enforcement action taken.

The computer disks requested include:

1. A disk containing list of NMSS licensees,inciuding names, mailing I

addresses, contact persons phones and program codes.

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2. Separately or on the same disk, the same mformation breaking out general license holders of distribution licenses.

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

This request is made on behalf of 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 walver of any and all fees that might otherwise be assessed under an ordinary FOIA request. This is a request for documents pursuant to the legitimate right of a disputant to discover records of a fcdcral agency. As such it is not an ordinary FOIA request as anticipated by the statute or NRC regulations.

This request is being made through FOIA channels becausc IWI counsel was directed to do so by l

NRC representatives. It is presumed that this is for the administrative convenience of the NRC.

Whatever the reason, it is inapp opiiate for a federal agency to imponc fees for documents subject to discovery. In this circumstarace, FOfA fees prescribed by regulators should not be assessed in the first instance or, if the NRC : dministrative practice requires it, should be waived because the request is in the nature of discovoy.

Please be advised that there is a seme 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 Enforcement have agreed to extead that time to 30 days but not later th== July 15. 1996_.

Consequently, dressed and resolved.your response time to this request has a direc case can be ad documents and disks. However, such payment should not be regarded as a wa Should the request for waiver of fees be denied, IWI will pay up to $500. for the req s right to pnWest such fees and request reimbursement.

IWI counsel will be traveling throuth Asia from May 27 to June 10. During that time, NRC representatives may correspond with Anita Parker at (703) 97&6784 concerning this FOIA request. Ms.1'arker is fully empowered to act on behalf of IW1 counsel.

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

Sincere,

On, h

James R. Tourtellotte Attorney-at Law

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June 7,1996-1:09 pm l

har Ah 90FrRHT OF c0L' MLL i

AKI A M A Attention:

Mr. Russell A. Powell, Director SA - "=

Company:

NRC. Freedom of Information & Publications i

Telephone #:

301-415-6527 l

Fax #:

301-415-5130 Fnhject:

FOIA Request 1

Sender:

Anita Parker Sender Telephone #:

703-978-6784 Sender Fax #:

703-978-6785

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You should recalve _._22 pages, including thh cover sheet.. If you do not receive all the pages, picasc call the number above.

COMMENTS:

Dear Mr. Powell,

Attached you will find our FOl A request along with the referenced NRC documents. As you will note in our letter, we are under a time constraint to issue our response to an NRC Notice of Violation. The requested information is critical to our response. If there is any problem in obtaining the information reguested 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, please do not hesitate to call. Your prompt respcmx is appreciated.

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i Anita M. Parker for l

James R.Tourtcllotte

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--..s, aos UNffED STATES a

1 NUCLEAR REGULATORY Coa 4Ml4800N wasenmoton, o.c. assagens j

% v !.5 1996 FA 96-135 EA 96-170 Innovative Weaponry, Inc.

ATTN: Mr. David Gregor, President 337 Eubank NE Albuquerque, New Mexice 47123 SUSJECT:

NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY -

$7.500 AND CONFIRMATORY ORDER MODIFYING LICENSE (EFFECTIVE IIDIEDIATELY NAC Investigation Report No. 4-95-022)

Dear Mr. Regor:

This refers to the predecisional enforcement conference canducted en April 23, 1996, with you and other Innovative Weaponry, Inc.

(!WI) representatives in the NRC's offices in Rockville, Maryland. A list of confeonce attendees is enclosed (Enclosure 1).

The conference was conducted to discuss apparent violations identified during an IIRC investigation conducted between May 9.1995, and March it.1995. These apparent violations millfully by company, as teoll as the concern that they may have been caenitted officers we representative on April ll, lh,re discussed by telephone with an Ivi and were briefly described in a letter sent to IWI on April 17. 1996.

Based on the informatten developed during the investigation and on our constderetton of the inferentien that you provided during the cesference, the NRC has determined that violattens of Igit regstrements occurred. These violations, which IWI admitted at the conference, are cited in the enclosed Motice of Violation and proposed Issosition of Civil Penalty (Enclosure 1).

Specifically, the Imt concludes that It:I distributed licensed meterial. i.e.

tritium. in various guesights that were net a the IK and not authorized on the license and that IWI distri tad tri tua sources that were obtained from a manufacturer not auttarized on the license, j

At the conference. Itri offtetals admitted that violations had occurred but denied that there tsas any intent to censit them. Ilotwithsteadinp the Licensee's positten en latent, the NRC is concerned that the vio ations resulted from a lack of effective action to assure compliance with license requirements, despite Iv! officials being aware that the NRC license contained i

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limitations on what could and could not be distributed.

This awareness should have prompted IWI to make certain that it both underst i

Thus, even though these violations did not result in any actual safet/

impacts, they are nonetheless significant from a regulatory standpoint.

l Therefore, the violations in the enclosed Notice have been categorized as a l

Severity Level !!! problem in accordance with the " General Statement of Policy j

and Procedure by NRC Enfor:ement Actions" (Enforcement Policy). NUREG-1600.

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In accordance with the of $2,800 is considered for a Severity Level III problem.r forcement policy, n

j In this case given management'sfailuretoassurethatrequirementsweremetandthatthelicense j

was understood, I have been authorized, after consultation with the Director, Office of Enforcement and the Deputy Executive Director for Nuclear Mterials

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Safety, Saftguards and operations support, to exercise discretion pursuant to i

section VII.A.1 of the Enforcement Poiicy and propose a civil penalty of

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$1,500.

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At the conference and at the licensing meeting that followed it, IWI officials

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voluntarily made various commitments to correct these violations and to assure that future operations will be conducted in strict accordance with the license conditions.

for all IWI employees whose activities may affect compliance with N requirements, and the hirfing of a third-partyIWI to assure contin en audit plan and condest periodic audits of independent auditor to develop compliance with all NRC requirements. These commitments are described in more detail and are confirmed in the enclosed Confirmatory Order Nodifying License.

pursuant te section 223 er the Atomic Energy Act of 1954, as amended, any person who willfully violates, attempts to violate, or conspires te violate, any provision of the enclosed Order shall be subject to criminal prosecution as set forth in that section. Violation of this order any aise subject the person to civil monetary penalty.

You are required to respond to the Notice and the enciesed Order and should follow the instructier.s im each then preparing your response. In your response to the Notice, Jeu should dee mont the specific actions taken and any additional nettens you p:an to prevent recurrence. After reviewing your response to this Notice, including your proposed corrective actieL3 and the results of future inapoctions the lac will determine whether further IRC enforcement action is necessa,y to ensure compliance with NRC regulatory r

requirements.

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Innovative Weaponry, Inc.

3-In accordance with 10 CFR 2.

this letter, its enclosures,790 of the NRC's " Rules of Practice," a copy of POR.

and your response will be placed in the NRC Public Document Room include any personal.(priva)cy, proprietary, or safege it c)n be placed in t u POR without redaction.

a on so that Sincerely,

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/. ames Liebennan Ofrector gffice of Enforc,ement Docket No. 030-30264 License No. 30-23697-01E

Enclosures:

1.

Conference Attendence List 2.

Confirmatory Order Nodifying LicenseNotice of Violation a 3.

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ENCL 0suRE 1 p ISIGIELL ENFCBCBEENT CONFERENc3 A 6 LicntsES/ FACILITY Innovative Weaponry. Inc. of Nevada DATt/ TINS Asril 23,1996 / 9 a.e. EDT HiifING I4 CATION NRC H0. Rockvi11e, Maryland EA NtsteRR_

96-13$

NW ONAANIZATION TITLE David Greger IWI of Nevada President Patricia Wilsen IWI of Nevada Executive Vice President Kenneth Wilson

!WI of Nevada Consultant James Tourte11otte Representing IWI of Attorney Nevada James Lieberman NRC Director. Office of Enforcement Geoffrey Cant NRC Enforx: ament $pecia11st,4ffice of Enforcement Larry W. Casper NRC Chief, Medical Academic and Commeretal Use Safety tranch Susan Greene NbC Medical. Academic and Commercial Use Safety tranch Michael Rafty NRC Office of the General Counsel Jeff Bartlett NNC Office of the General Counsel Linda Howell NRC, Region IV Calef. Nuclear Materials inspection and Faael cycle / Decommissioning tranch Gary Santern NRC. Region IV Enforcement Officer 1

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1 NOTICE OF VIOLATION AND i

PROPOSED INPOSITION OF CIVIL PENALTY Innovative Weaponry, Inc. of Nevada Docket No. 030-30266 Albuquerque, New Mexico License No.

30-23697-01E EA 96-135 During an NRC investigation conducted between May 9, 1995 and March 22, 1996, vietations of NRC requirements were identified, in accordance with the

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

IRNtEG-1600, the violations are listed below:

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License No. 30-23697-01E authorizes the licensee to distribute SR8 i

Technologies, Inc., Model PRN-800/6/200 sealed light sources.

Contrary to the above from June to August 1995, the licensee i

distributed tritium se,aled light sources from a manufacturer not authorized in the license. (01013) l B.

License Condition 10 of License No. 30-23697-ole authorizes the licensee j

to distribute sealed light sources in specified gunsights and in i

specified configurations.

t' Contrary to the nove, from July to September 1995, the licensee distributed tritium sealed light sources in configurations not specified or otherwise authorized in the license.

(01023)

These violations re dat a Severity Level 111 problem (Supplement VI).

j Civil Penalty - $7, 4

i Pursuanttotheprovislensof10CFR2.201,InnovativeWeepenb,theDirector Inc., is j

hereby required to sutait a written statement er explanation office of Enforcement, U.S. Nuclear Regulatory Cosnission within 30 days of the date of this Notice of Violatten and Proposed impositlen of Civil Penalty instice). This reply should be clearly aerked as 4

• Reply to a Notice of violetten* and should include for each alleged violatten:

4 denial of the alleged violetten. (2) the reasons for the vio(1) admission er latten if i

admitted, and if denied the reasons why (3) the corrective steps that have j

beentakenandtheresultsachieved.(4)thecorrectivestepsthatwillbe j

taken to avoid further violations, and (l) the date when full comp 11:. :e will be achieved.

If an edegnate reply is not received within t,he time specified in this Notice, an order er a Demand for Information any be isseed as to why the license should not be modified, suspended, or revoked or wie such other action as may be proper should not be taken. Consideration any be given to expanding the response time for good cause shown. Under the authority of j

3ectlen 182 of the Act. 42 U.S.C. 2232, this response shall be submitted under oath or affirestion.

p Within the same time as provided for the response required above under 10 CFR t.201, the Licensee any pay the civil penalty by letter addressed to the Director, Office of Enforcement, U.S. Nuclear Regulatory Comission, with a check, draft, money order, or electronic transfer payable to the Treasurer of the United States in the aument of the civil penalty proposed above, or the

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4 Notice of Violation '

cumulative amount of the qivil penalties if more than one civil penalty is proposed, or may protest imposition of the civil penalty in whole or in part, by a written answer addressed to the Director. Office of Enforcement, U.S.

Nuclear Regulatory Commission. $hould the Licensee fail to answer within the j

time specified, al order igosing the civil penalty will be issued. h uld the ticonsee elect to file an answer in accordance with 10 CFR 2.205 j

protesting the c'ay11 penalty, in whole or in part, such answer should be clearly marked as an " Answer to a Notice of Violation" :nd any: (1) deny the 1

violation (s Ifsted in this Notice, in whole or in part, (2) demonstrate extenuating) circumstances, (3) show error in this Notice, or (4) shaw ot i

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

mitigation of the penalty.

In requesting mitigation of the proposed penalty, the factors addressed in Section VI.8.2 of the Enforcement Polic, should os addressed. Any written i

answer in accordance with 10 CFR 2.205 should be set forth separately from the i

statement or explanation in reply pursuant to 10 CFR 2.201, but may j

incorporate parts of the 10 CFR 2.201 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 procedure for leposing a civil penalty.

i Upon failure to pay any civil penalty due which subsequently has been i

detemined in accordance with the applicable revisions of 10 CFR t.205, this I

natter any be referrodeto the Attorney Genera, and the pontity, unless 1

compromised, remitted, or mitigated, may be collected by civil action pursuant j

to Section 234c of the Act, 42 U.S.C. !!ste.

f 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:

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James Liebeman, Director, Office of Enforcement, U.S.

Nuclear Regulatory i

Cennission, One White Flint North, 11555 Rockville Pike, Rockville m 20052-1 1738 with a copy to the Regional Aestnistrator, U.S. Nuclear Regulatory CeamIssion,RegionIV.

i Because your response will be placed in the NRC pubite Document Reem *.*Dk), to the extent possible, it should not include any personal privacy, proprietary, or safeguards informasion se that it can be placed in the FOR without redacties. However, if you find it necessary to include such information, you sheeld clearly indicate he specific information that you desire not to be placed in the POR, and provide the legal basis to support your roguest for withhelding the information free the public, i

Dated at teckville, Maryland this /ftLday of May 1996

.!O d COO *oe.'ortt 96.st 6eW 69sS-905-105:13; NOI?lo!G ?NW1 3d's UN!TfD STATE $

NUCLEAR REGULATORY C0 fells $10N

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In the Matter cf

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Docket No.

C30-30266 Innovative Weaponry, Inc.

License No. 30-23697-01E Albuquerque, New Mexico EA 96-170 CONFIANATORY ORDER N001FYING LICENSE (EFFECT!WE If9tE0!ATELY)

Innovative Weaponry. Inc. of Nevada (IWI or Licensee) is the holder of NRC License No. 30-23697-0l[ issued by the Nuclear Regulatory Consission.(NRC or Commission) pursuant to 10 CFR part 30. The license authorizes the Ltceasee to distribute byproduct material (i.e., tritium) in gunsights as specified in the license. The license was transferred from IWI of New Mexico te IWI of Nevada on April 3, 1995. Although due to expire on June 30, 1993, the license has remained active based on 4 timely renewal appitcation.

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11 Based en its review of the results of an NRC investigation conducted from May 9, 1995, through March 22, 1996, the NRC identified the following apparent violations of IWl's license condittens: 1) IW1 distributed tritium in gunsights not approved by the NRC and not specifically authorised on the license; ard 2) IW. distelbuted tritium sources obtained from a manufacturer not authorized on the license. In addition, as indicated in a letter issued to IWI on April 17, 1996, it appeared that the violations won committed by the President and Executive Vice President of the company.

8;.cfra - : gThese asparent violations and the cencern ti.at th., vers enemitted by the

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President and Exec ive Vice Prestdont were discusst with IWI representativos l

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

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The Licensee admitted that violations had occurred but dented i

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there was any intent to coenit the violations.

Notwithstanding the Licensee's j

position on intent, the NAC is concerned that the violations resulted from a lack of effective action te assure compliance with license requirements, f

despf to JWI officials being aware that the NRC license contained Ifaltations i

on what could and could not be distributed.

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As a result of the NRC~1nvestigation, the NRC staff euestioned whether it f

should have the requisite reasonable assurance that IWI will cosyly with t

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egency requirements. At the predectsional enforcement conference and a j

meeting on the same debe to discuss license amendment issues, the Licensee 3

voluntarily committed to actions to address the NRC's concerns about its ability to conduct its activities in compliance with the license and

,, % cc r.o woo o applicable NRC requirements. The Licensee offered te develop the fellowing plans and to submit them to the llRC for approval: 1) a training plan to assure that all lui employees, including management, understand the NRC license and applicable NIlt requirements; 2) an audit plan to assure cenpliance with requirements to be taplemented by a third-party, independent auditor; and

3) development of written precedures to mainta,in accountability, centrol, and security of materials authorized by the NRC for distribution. The llRC has concluded that laplementation of these commitments, which are described in more detail below, would provide the necessary assurance that licensed activities will be in compliance with NRC requirments in the future.

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3 i find that the Licensee's commiteents set forth at the predecisional enforcement conference and licensing meetings conducted on A i

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acceptable and necessary and conclude that with these commitme i

health, safety and laterest are reasonably assured.

i In a telephone call on i

Ney 8,19M, with Mr. James Tourte11otte, the Licensee's attorney

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the Licensee agreed to this actica. I have also determined, based en.ne Licensee's consent :ad on the significance of the conduct described j

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that the pubite health and safety require that this Order be inmed effective.

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'I, IV i

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Accordingly, pursuant to sections 81,141b,1611,161o,142 and IM of the i

Atomic Energy Act of 195,4, as amended, and the Cometssion's regula 10 CFR t.202 and 10 CFR part 30, IT !$ HERERY ORDEltED, EFFECTIVE 3

THAT LICEltSE i

110. 30-23697-01E 15 MOO!FIED AS FOLLOWS:

4' 1.

The L,1censee shan submit for slhC approval, within 30 des of the issuance of this Order, a training plan designed to assure that all IWI i

employees, including manegement, who are involved in activities that 1

i affect compliance with the telC l'.:ense are faellier with the conditicas and restrictions contateed in the 11 conte, as well as with all other applicable IstC requirements. The training plan also shall provide for training in accountability, control, and security of licensed mate?si in gensights authorized by the letC for distribution to persons exempt

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from iteensing.

The training plan shall provide for initial training of n

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all oxisting employees, including management, within 30 days of the k

issuance of this Order, training for new employees, including i

j aanagement, prior to their working wtth licensed materials, and annual refresher training thereafter.

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2.a.

The Licenses shall submit for NitC approval, within 30 days of the date of this Order, the name and qualifications of an independent auditor or aud Kors Som the Licenses proposes to conduct the audits described i

4 below and who are capable of conducting such audits to assure cog 11ance j

with all NRC license conditions and requirements.

1

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1 b.

The Licensee shall submit for IstC approval, within 30 days of the NitC's 1

l approval of the 4bove auditer, an audit plan uhtch shall provide for j

perledic audits to assure compilance with all fetc license conditions and reguirements. The audit plan shall provide for an initial audit.

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followed by guarterly audits for a 1-year period, and semi-annual audits thereafter. The audit plan shall provida for audit reports to be issued to the tira ses and the NRC at the same time within 30 days of the completten of once audit. The audit report shall contain findings on L Licensee's state of compliance with IAC requirements and receamendations to achieve compliance if deficiencies are noted. The plan shall provide for the Licensee to respond in writing to all audit findings within 30 days of each audi'. report, with a copy to the lec.

The response shall state the actions taken by the licensee to address sedit recommendations with which the Licensee agrees.

For those

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a recommendations that the Licensee disputes, 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

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of this Order, written procedures designed to maintain inventory and i

accountability of gunsights with sources authorized by the NRC for j

j distribut'an to persons exempt from licensing.

4.

Upon approval of the actions required under items 1 and 2.a above. items i

I and 2.b shall be implemented until relaxed by the Regional l'

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Administrator, Region IV.

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5.

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

The Regional Aministrator, Reglen IV, may relax or rescind, in writing, any of the 6 eve conditions upon a showing by the Licensee of poed cause.

V.

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

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j hearing. A request for extension of time must be made in writing to the 2

j Director, Office of Enforcement, U.S. Nuclear Aegulatory Commission Washjngton, D.C. 20555, and include a statement of good cause for the extension.

Any request for a hearing shall be subeltted to the Secretary, U.S. Nuclear Regulatory caseission, ATTN: Chief, Docketing and Service i

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$ection, Washington, D.C. 20$$$. Copies : Iso shall be sent to the Director, Office of Enforcenent, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, to the Assistant General Counsel for Hearings and Cnforcement at the same address, to the Regional Adelaistrator, NRC Region IV, 611 Ryan Plaza i

Drive, $uite 400, Arlington, Texas 76011, and to the Licensee.

If such a 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 i

j address the criteria set forth in 10 CFR 2.714(d).

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If a hearing is requested by a person whose interest is adversely affected.

'l j-the Consission will issue en Order designating the time and place of any j

hearing.

If a hearing is held, the issue to be considered at such hearing i

shall be whether this confirmatory order should be sustained.

l i

Pursuant to 10 CFR 2.202(c)(1)(1), any person other than the Lic.nsee, i

1 edversely affected by the Order, any, in addition to dentading a hearing, at j

the time the answer is filed or sooner, move the presiding officer to set

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aside the immediate effectiveness of the Order on the ground that the Order, l

including the need for famodtate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded allegations, or error.

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In the absence of any request for hearing, or written approval of an extension 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 i

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 extension expires if a hearing request has not been received.

AN ANSWER OR A ret lUEST FOR HEAR!fHi SMALL NOT STAY THE IMEDIATE EFFECTIVE j

FOR THE NUCLEAR REGULATORY C0fel!$$ ION hf_ _

James Lieberman, Director Office of Enforcement Dated at, ekville, Maryland t

l this/f day of May 1996 b

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JTay1or, E00 (11G21)

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DCool, 80855 (SF5) (sat 3) i LCasper.1815$

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NUCLEAR REGULATORY COMMISSION

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21st tentury Technologies, Inc.

ATTN: Ms. Patricia Wilson i

President i

337 Eubank NO Albuquerque, New Mexico 87123 I

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Dear us. Wilson:

Enclosed is Assi.daent No. 05 renewing your Nuclear Regulatory Consission I

Lfeense No. 30-23697-01E in its entirety.

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On M4y 8,1996, Susan Greene of my staff, Geoffrey Cant of the Office of Enforcement, and I spoke with your counsel, Mr. James Tourte11otte, concerning 4

1 the commitments outlined in our proposed Confirmatory Order and the pending license amendment.

It was noted that this license amendment is being issued based on, and in conjunction with, connitments made by 21st Century Technologies. Inc. (previously known as IWI) during the predecisional enforcommet conference and licensing meeting conducta.1 on April 23, 1996. The proposed ceamitaants in the Confirmatory Order were reviewed with, and substantially agreed upon by, Mr. Tourte11otte and, briefly, are as follows:

1.

The Licenses will submit a training plan to assure that all IWI employees involved in activities associated with the NRC license are familiar with the license and its conditions, and with all applicable NRC regulations.

2.a.

The Licenses will submit the name and qualiftentions of an independent third-party auditor to conduct audits.

2.b.

The Licenses 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 MRC for distribution.

These commitments, in detail, will be forwarded shortly under separate cover in the Confirmatory Order Modifying License No. 30-23697-01E.

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

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

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p. Wilson please be advised that you must conduct your program involving radioactive materials in accordance with the conditions specified in your NRC license, 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:

1.

Comply with applicable NRC regulations in 10 CFR Part 30, " Rules of General Ap$plicability to Domestic Licersing of Byproduct Material"; 10 CFR Part 32,

• pecific Domestic Licenses to Nanufacture or Transfer Certain Items Containing typroduct Material"; and other applicable regulations.

NOTE: Licensees authorized to distribute or initially transfer products containing byproduct material must also possess a valid possession license issued either by NRC or an Agreement State (s) which authorizes possession and use of byproduct material.

2.

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

3.

Notify NRC in writing within 30 days of any change in mailing address (no fee is required if tu location of radioactive material remains the same).

4.

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

5.

Submit a complete renewal application (with proper fee) or termination request (no fee rgquired) 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 radteactive material after your license expires is a violation of NRC regulationa.

6.

In accordance with 10 CFR 30.36, request termination of your license if you plan to permanently 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 saforcement action (s) being taken against you. This could include issuance 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-1600 Actions,' (,50 FR 34381, June 30,1995)." General Statement of Policy and Pr If you have any questions, please contact Ms. Susan Greene at (301) 415-7843.

Sincerelyf, fi' l

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Larry W Casper, Chi Mlndica", Academic, Commercial l

use befety Branch s

Division of Industrial and Medical Nuclear Safety Office of Nuclear Material Safety and Safeguards Docket No. 030-30266

Enclosure:

Amendment No. 05 1

cc: tenito Earcia Chief i

Bureau of Hazardour and

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Radioactive Materials 525 Camino de los Marquez P.O. Box tello l

Santa Fe, New Mexico 37502 i

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MATERI ALS LICENSE Amendment No. 05 i

Purwant to the Amerie f.ncrgy Act ef !9.4 n 4'nended Be l'ne:3s Rearpan:zatten Act cf 19*4 Public IJs 93 4M1. And Et.c 10. Code c S

Tederal Resul,ticas. Chapter I. Parts.50. ? !. 32. 83. 34. M. M.19. *. and 0. and in rcl'ance on *sewinents and repsesentations heresefere made by the licec6et. a licer.se it hereby ioued auth eridnythe 12tnsec 1; treene scqdre, po+sess. nd transfer bypro69Ct. 60 cree, and spesial nucle:ar material designated befom; to gle such material (nr the partpose.as and at the piacris) de93 nated below; :o deliver or transfer such rthhterial in 3

h perwan authurlied so recclse li in myn.fance with Se regula !ons ofinc appf kable Perits). This !. cense shat! bc decmed to centsin the conditions P specified in Sci; tion iM of the Atomic Energy Act of IP54. as areended. aM is subject to a!! appWable ni!es. regulations. and orders of the Nwicar Regulatory Cornmeission now or hereafter in efl'oc: sad so any crinditicos specified below.

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In accordance with letter dated 21st Century Technologies, Inc.

3 d"""**e k & 3-3-

30-23697-01E t renewed in i

fit entirety in r==d at fall amec t 2

337 Eubank NE Albuquerque, New Mexico 87123 4 W

• May 31. 2001 _..

5. Exdet w

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Reference No.

030-30266

6. Byproduct. Source. ansor

7. Chealical aneur Physical

8. Manimtam Arnount that Ucennec

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SpecialSclear Masenal Form May Passess at Any One Time 7

UnderThis License i

G A.

Hydrogen-3 A.

$aaled Light Sources A.

Not applicable.

t (SR8 Technologies, Inc.

(See Condition 10)

F Model PRH-800/G/200, and i

Lusitec Models CL/1,5/4,85 I

and CL/0,95/3,3) s

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Authorized Use 1

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Pursuant to Section 32.22, 10 CFR Part 32s the licensee is authorized'to distribute I

only those luminess gunsights containing sealed light sources identified in Condition

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7.A. above, whether er not sounted on a weapon, identified in Condition 10 of this f

license to persons exeset free the requirements for a license pursuant to Section i

30.19, 10 CFR Part 30, or equivalent provisions of the regulations of any Agreement i

State.

I I

I CONDITIONS I

i 10. The approved gunsights are lietted to the following model designs and attachments as l

listed in Registration Certificate No. NR-365-D-101-E:

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The Model CCF003 is a front " dot" sight designed for Colt pistols (see Attachments 3 g

and 14).

I:i The Model C4R030 is a rear 2 ' dot

• or 'bar' sight designed for Colt pistols (see i.

Attachments 4, 12, and 13).

The Model GKF001 is a front " dot

• sight designed for Glock pistols (see Attachments 5 l

and 14).

(1 The Model GKRolo is a rear 2

• dot" or "bar" sight designed for Glock pistols (see Q M g tachments 6, 12 and 13).

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}",C 8 *= U 4 A U.E NUCLEAR REGULATORY Cosmata840N i

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l CONDITIONS

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The Model SSF002 is a front " dot" sight designed for Sig-Sauer pistols (see l

I Attachments 7 and 14).

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The Model SSR020 4 a rear 2 ?det" or "bar" sight designed for Sig-Sauer pistols

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(see Attachments 8, 12, and 13).

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The Model SW/0% is a front " dot" sight designed for Smith and Wesson pistols (see I

Attachments 9 and 29).

l The Model SWR 040 is a rear 2 ' dot" sight designed for Smith and Wesson pistols (see I

Attachments 10 and 29).

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

l Attachments 11 and 28).

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The Series 100 is a single " dot" front sight (see Attachment 17),

l The Series 200 l's a 2 " dot' rwar sight (see At,tachment 18).

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The Series 300 is. a single *bei" rear p)gipt',.(siliis' At.tachment l'9).

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The Series 400 is a recessed, single " tar

• raar si (see fttachment 20).

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The Series loo is r.' 2 *bar* re. :...a L i i t L '

1 ar sight."(see 'Att nt 2Q<.,-

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1, The Series 600 is a ringessed. 2 'bar" rear sight (see A(technent 22).

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The Series 700 is a 3 "bar* rear sight (see Attachment 23).

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The series 800 is a 3 "bar* rhar sightd{sedAthchment 24).

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The Series 900 is t 2 ' dot," single 'bar" rear sight (see Attachment 25).

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

ll either of the two configurations shown in Attachment 26.

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'l 1: 11.a. No " dot' or "bar' tritium light source listed in Condition 7.A. may contain more il I

than 30 millicuries.

I l-H 11 No combination of " dot' or "bar* tritium light source listed in Condition 7. A.

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

I 90 millicuries.

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I 12 This license does not authorize possetsion or use of licensed material.

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f SUPPLEs4ENTARY SHEET

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Asm.dment No. 05 I

CONDITIONS (Continued)

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

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15. The licensee shall, in writing, infom the Director, Office of Nuclear Material

$afety and Safeguards, at least 15 days before Mr. Barry Mowry becomes involved in any activity authorized pursuant to this 1teense.

j f 16. Except as specifically provided otherwise by this license, the Ifcensee shall conduct i

I its program in accordance with the statements, representations, and procedures I

contained in the documents, including any enclosures, listed below. The U.S. Nuclear I

Regulatory Cosmission's regulations shall govern unless the statements, I

representations, and procedures in the licensee's application and correspondence are j

l more restrictive than the regulations.

I i

i A.

Letter dated March 1, 1996; I

8.

Letter dated March 4, 1996; I

C.

Facsimile received February 29, 1996; 1

D.

Facsimile received April 29, 1996; and j

I E.

Registration C;rtificate No. NR-365-D-101-E I

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FOR THE U.S. NUCLEAR REGULATORY C0fft!5SION l

l T /hf BY:

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OATE:

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' L&rry 4( Caiper, Chief

$1cd,fetyBranch Academic, and Commercial i

I Use Sa i

t Division of Industrial and i

Medical Nuclear Safety Office of Muclear Material safety i

i and Safeguards i

Washington, DC 10555 f

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