ML20134J074

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Oceaneering International, Inc.; Notice of Violation and Exercise of Enforcement Discretion, NRC Inspection Report 150-00017/2020-001
ML20134J074
Person / Time
Site: 15000017
Issue date: 05/13/2020
From: Mary Muessle
Division of Nuclear Materials Safety IV
To: Jacobs T
Oceaneering International
References
EA-20-024, NMED Item 200094, NRC Event 54557 IR 2020001
Download: ML20134J074 (13)


See also: IR 015000017/2020001

Text

May 13, 2020

EA-20-024

NMED Item 200094

NRC Event 54557

Mr. Tommy Jacobs

Corporate Radiation Safety Officer

Oceaneering International, Inc.

10600 West Sam Houston Parkway North

Houston, Texas 77064

SUBJECT:

NOTICE OF VIOLATION AND EXERCISE OF ENFORCEMENT DISCRETION,

NRC INSPECTION REPORT 150-00017/2020-001

Dear Mr. Jacobs:

This letter refers to the event reported to the U.S. Nuclear Regulatory Commission (NRC) on

March 2, 2020 (Nuclear Material Events Database (NMED), Item 200094, NRC Event

Notification 54557), involving the loss of a sealed source containing NRC-licensed byproduct

material at a temporary job site in the Gulf of Mexico. You followed up the initial telephone

notification with a written report, dated March 23, 2020, which presented the facts and

circumstances surrounding the event. The enclosed report presents the results of the NRCs

review of the event, the associated timeline, as well as the NRCs understanding of the actions

taken by Oceaneering International, Inc. A final exit briefing was conducted (telephonically) with

you on May 4, 2020, to discuss the results of our review.

Based on the results of this review, the NRC has determined two violations of NRC

requirements occurred. The violations were evaluated in accordance with the NRC

Enforcement Policy, which can be found at the NRCs Web site at http://www.nrc.gov/about-

nrc/regulatory/enforcement/enforce-pol.html. The violations are cited and described in the

enclosed Notice of Violation (Notice) because they were either self-revealing as a result of the

event or identified by the NRC inspector during the in-office review. The violations involved the

failures to: (A) maintain constant control and surveillance of licensed material while not in

storage, as required by Title 10 of the Code of Federal Regulations (10 CFR) 20.1802; and

(B) read and record the exposures from direct reading dosimeters at the beginning and end of

each shift.

In accordance with the NRC Enforcement Policy, Violation (A) would normally be categorized at

Severity Level III and considered for escalated enforcement action. However, after considering

the facts and circumstances of the loss of licensed byproduct material, and in consultation with

the Director of the NRCs Office of Enforcement, I have been authorized to exercise

enforcement discretion in accordance with Section 3.0 of the Enforcement Policy, Use of

Enforcement Discretion, and assess Violation (A) at Severity Level IV.

T. Jacobs

2

The NRC is exercising discretion because of the circumstances that resulted in the byproduct

material falling into the Gulf of Mexico represent an isolated, rather than programmatic

weakness. Further, the NRC determined that the byproduct material, because of its physical

characteristics and inaccessible location, is of limited safety and environmental significance and

does not pose a material health, safety, or security risk to members of the public.

The NRC considers Violation (B) above to be a low safety significance violation and thus has

categorized it in accordance with the NRC Enforcement Policy at Severity Level IV. This

violation is being cited as Severity Level IV because it was identified by the NRC inspector

during the review.

The NRC has concluded that information regarding: (1) the reason for the violations; (2) the

corrective actions that have been taken and the results achieved; and (3) the date when full

compliance will be achieved is already adequately addressed on the docket in your 30-day

report dated March 23, 2020, and in the enclosed inspection report. Therefore, you are not

required to respond to this letter unless the description therein does not accurately reflect your

corrective actions or your position. In that case, or if you choose to provide additional

information, you should follow the instructions specified in the enclosed Notice.

In accordance with 10 CFR 2.390 of the NRC's "Agency Rules of Practice and Procedure," a

copy of this letter, its enclosures, and your response, if you choose to provide one, will be made

available electronically for public inspection in the NRC Public Document Room or from the

NRC's Agencywide Documents Access and Management System, accessible from the NRC

Web site at http://www.nrc.gov/reading-rm/adams.html.

If you have any questions concerning this matter, please contact Ms. Patricia Silva of my staff at

817-200-1455.

Sincerely,

Mary Muessle, Director

Division of Nuclear Materials Safety

Docket: 150-00017

License: General License under 10 CFR 150.20

Enclosures:

1. Notice of Violation (Notice)

2. NRC Inspection Report 150-00017/2020-001

cc:

Jeff Dauzat, Administrator

Louisiana Dept. of Environmental Quality

Charlotte Sullivan, Manager

Texas Department of State Health Services

Mary C.

Muessle

Digitally signed by

Mary C. Muessle

Date: 2020.05.13

11:55:08 -05'00'

SUNSI Review:

ADAMS:

Non-Publicly Available Non-Sensitive

Keyword:

By: JEV

Yes No

Publicly Available

Sensitive

EA-20-024

OFFICE

HP:MIB

C:MIB

ACES

D:DNMS

NAME

JEvonEhr

PASilva

JGroom

MMuessle

SIGNATURE

JEV

PAS

JRG

DATE

05/06/2020

05/07/2020

05/8/2020

Enclosure 1

NOTICE OF VIOLATION

Oceaneering International, Inc.

Docket No. 150-00017

Houston, Texas

License No. 10 CFR 150.20

During an NRC review of NRC Event Notification 54557, two violations of NRC requirements

were identified. In accordance with the NRC Enforcement Policy, the violations are listed below:

A) 10 CFR 20.1802 requires that the licensee shall control and maintain constant

surveillance of licensed material that is in a controlled or unrestricted area and that is not

in storage.

Contrary to the above, on March 2, 2020, the licensee failed to control and maintain

constant surveillance of licensed material that was in a controlled or unrestricted area

that was not in storage. Specifically, the licensee failed to control a radiography

exposure device that was being moved between radiographic exposures on an offshore

Gulf of Mexico production platform, which resulted in the radiography exposure device

falling into the Gulf of Mexico.

This is a Severity Level IV violation (NRC Enforcement Policy Section 3.0).

B) 10 CFR 34.47(d) requires, in part, that direct reading dosimeters such as pocket

dosimeters or electronic personal dosimeters, must be read and the exposures recorded

at the beginning and end of each shift.

Contrary to the above, on March 2, 2020, for direct reading dosimeters, the licensee

failed to read and record the exposure at the beginning and end of each shift.

Specifically, the licensee conducted radiographic operations at an offshore Gulf of

Mexico production platform and failed to record the end-of-shift direct reading dosimeter

for the two active radiographers.

This is a Severity Level IV violation (NRC Enforcement Policy Section 6.3.d).

The NRC has concluded that information regarding: (1) the reason for the violations; (2) the

corrective actions that have been taken and the results achieved; and (3) the date when full

compliance will be achieved is already adequately addressed on the docket in your letter dated

March 23, 2020, and the enclosed inspection report.

However, if the description therein does not accurately reflect your position or your corrective

actions, you are required to submit a written statement or explanation pursuant to 10 CFR 2.201

within 30 days of the date of the letter transmitting this Notice of Violation (Notice). In that case,

or if you choose to respond, clearly mark your response as a Reply to a Notice of Violation;

EA-20-024, and send it to the Director, Office of Enforcement, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001 with a copy to the U.S. Nuclear Regulatory

Commission, ATTN: Document Control Desk, Washington, DC 20555-0001, and the Regional

Administrator, U.S. Nuclear Regulatory Commission, Region IV, 1600 East Lamar Blvd.,

Arlington, Texas 76011-4511.

If you choose to respond, your response will be made available electronically for public

inspection in the NRC Public Document Room or in the NRCs ADAMS, accessible from the

website at http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response

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should not include any personal privacy or proprietary information so that it can be made

available to the public without redaction.

In accordance with 10 CFR 19.11, you may be required to post this Notice within 2 working days

of receipt.

Dated this 13th of May 2020

Enclosure 2

U.S. NUCLEAR REGULATORY COMMISSION

REGION IV

Docket:

150-00017

License:

General License under 10 CFR 150.20

Report:

2020-001

EA No:

EA-20-024

Licensee:

Oceaneering International, Inc.

Locations Inspected:

N/A - In-office review

Inspection Dates:

N/A - In-office review through April 30, 2020

Exit Meeting Date:

May 4, 2020

Inspectors:

Jason vonEhr, Health Physicist

Materials Inspection Branch

Division of Nuclear Materials Safety, Region IV

Approved By:

Patricia A. Silva, Chief

Materials Inspection Branch

Division of Nuclear Materials Safety, Region IV

Attachment:

Supplemental Inspection Information

2

EXECUTIVE SUMMARY

Oceaneering International, Inc.

NRC Inspection Report 150-00017/2020-001

The U.S. Nuclear Regulatory Commission (NRC) conducted an in-office review concerning a

lost source event reported by Oceaneering International, Inc., to the NRC on March 2, 2020

(Nuclear Material Events Database Item 200094, NRC Event Notification 54557) in

accordance with Title 10 of the Code of Federal Regulations (10 CFR) 20.2201(a)(1)(i). The

report concerned the loss of a sealed source containing NRC-licensed byproduct material in

excess of 1,000 times the associated quantity listed in Appendix C of 10 CFR Part 20.

Program Overview

Oceaneering International, Inc. was a reciprocity licensee operating under a general license

granted under 10 CFR 150.20 using State of Louisiana License LA-7396-L01. The general

license authorizes the licensee to possess and use NRC-licensed byproduct material in

accordance with NRC regulations, the provisions of the State of Louisiana radioactive

materials license, as well as Oceaneering International, Inc.s Operating and Emergency

Procedures submitted to the NRC concerning the licensees lay-barge and offshore platform

radiography activities.

NRC In-Office Review Findings

The licensee had a three-person crew conducting radiographic operations offshore in the

Gulf of Mexico in block West Delta 73A, approximately 75 miles south of New Orleans,

Louisiana, on the afternoon of March 2, 2020. One of the licensees crew was moving the

radiographic exposure devices associated equipment between radiographic exposures on

the offshore production platform when the exposure device fell into the Gulf of Mexico.

The licensee crew members informed the licensees client, a third-party energy company,

and informed the licensees management team. The licensees management representative

then informed the NRC via the NRC Headquarters Operations Officers.

The NRC determined that two violations of NRC requirements occurred. The violations

involved the failures to: (A) maintain constant control and surveillance of licensed material

while not in storage, as required by 10 CFR 20.1802; and (B) read and record the exposures

from direct reading dosimeters at the beginning and end of each shift. Violation (A) was

determined to be a Severity Level IV violation by use of Enforcement Discretion, while

Violation (B) was determined to be a Severity Level IV violation in accordance with the

NRCs Enforcement Policy examples in Section 6.3.

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REPORT DETAILS

1.

Program Overview

1.1.

Program Scope

Oceaneering International, Inc., was a reciprocity licensee operating under a general

license granted under Title 10 of the Code of Federal Regulations (10 CFR) 150.20. The

licensee was authorized for reciprocity with State of Louisiana radioactive materials

license LA-7396-L01, Amendment 166, expiration date December 31, 2020. The

general license authorized the licensee to possess and use NRC-licensed byproduct

material in accordance with NRC regulations, the provisions of the State of Louisiana

radioactive materials license, as well as Oceaneering International, Inc.s Operating and

Emergency Procedures (Section X, Revision 1) submitted to the NRC on May 24, 2018,

concerning the licensees lay-barge and offshore platform radiography activities.

The licensee was initially granted general approval for the conduct of reciprocity

activities in areas of NRC jurisdiction for calendar year 2020 on December 13, 2019.

For the specific licensed activities conducted on March 2, 2020, at the West Delta 73A

offshore production platform in the Gulf of Mexico, the licensee applied for and received

approval from the NRC on February 26, 2020.

1.2.

In-Office Review Scope

On March 3, 2020, through April 30, 2020, the NRC conducted an in-office review of the

event that occurred on March 2, 2020 (Nuclear Material Events Database Item 200094,

NRC Event Notification 54557). The scope of the review was to examine the activities

conducted under the NRC general license as they related to public health, safety, and

security and to confirm compliance with the NRCs rules and regulations and with the

conditions of the State of Louisiana license as they concerned radiographic operations

leading up to and including the activities on March 2, 2020.

Within the areas identified above, the review included a selected examination of

procedures and representative records, and interviews with personnel.

2.

Timeline of NRC Event Notification 54557

On the evening of March 2, 2020, an assistant radiographer for the licensee was

attempting to move radiographic exposure equipment down a set of stairs on the outer

edge of an offshore production platform in block West Delta 73A off the coast of

Louisiana. The assistant radiographer set the radiography camera down (Source

Production and Equipment Company Model 150, S/N 1507, containing a model G-60

iridium-192 source, S/N AI2604, with an activity of approximately 18 curies) at the top of

the stairway. The assistant radiographer went to move the drive cables (approximately

37 feet long), still connected to the radiography camera, down the stairway. The

radiography cameras iridium-192 source was locked in the shielded position during this

movement.

Prior to reaching the middle of the stairway on the way down, the assistant noticed the

camera beginning to shift on the stairway and begin falling. The assistant

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unsuccessfully attempted to intercept the radiography camera as it fell down the

stairway. The radiography camera bounced off the stairway, snapped the drive cable,

and fell into the Gulf of Mexico approximately 60 feet below the stairway.

Figure 1 - Location of the Offshore Production Platform in West Delta 73A, relative to nearest land formations.

At the point of the West Delta 73A production, the Gulf of Mexico was approximately 160

feet deep. The production platform was approximately 18 miles from the Pilottown and

Pass A Loutre State Wildlife Management Area, and 73 miles from New Orleans. (see

Figure 1).

3.

Licensee Compliance with NRC Reporting Requirements

The licensee reported the approximate time of the loss of the radiography device into the

Gulf of Mexico at approximately 1850, Eastern Standard Time. The licensee called the

NRC Headquarters Operations Officers at 2231 Eastern Standard Time to report the

lost material.

The licensee was required to make a telephonic notification in accordance with the

NRCs regulation in 10 CFR 20.2201(a)(1)(i). This reporting regulation requires the

notification by telephone to the NRC immediately after its occurrence becomes known to

the licensee the loss of licensed material in an aggregate quantity equal to or greater

than 1,000 times the quantity specified in Appendix C of 10 CFR Part 20. The loss of

the material on March 2, 2020, was approximately 18 curies of iridium-192, which was in

excess of 1,000 times the corresponding value in Appendix C (1 microcurie).

While 10 CFR Part 20 does not specify or define what immediate means in terms of

reporting criteria, the licensee was also subject to certain immediately reportable

circumstances under 10 CFR 30.50, which specifies that immediate reporting shall be

made as soon as possible but no later than 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br /> after the discovery of the applicable

5

event or circumstance. The licensees telephone notification was made within 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br /> of

the events occurrence, which was immediately known to the licensee, and therefore,

reasonably met the NRCs timeliness criteria for this requirement.

In addition, following a telephone notification made in accordance with

10 CFR 20.2201(a)(1)(i), the licensee was subsequently required to submit a written

report within 30 days of the making the telephone notification in accordance with

10 CFR 20.2201(b). This written report was received by the NRC on March 23, 2020

(NRC's Agencywide Documents Access and Management System (ADAMS)

Accession ML20094F751). The NRCs review of the report determined that it was both

timely and adequately addressed the required content described in

10 CFR 20.2201(b)(i)-(vi).

4.

NRC Findings

The NRCs in-office review through April 30, 2020, resulted in two violations of NRC

requirements. These violations involved the licensees failures to: (A) maintain constant

control and surveillance of licensed material while not in storage, as required by

10 CFR 20.1802; and (B) read and record the exposures from direct reading dosimeters

at the beginning and end of each shift.

The inspector reviewed the licensees records as they related to: the most recent

iridum-192 source leak test; depleted uranium leak test; training records for all licensee

crew members conducting radiography on the offshore rig; survey records leading up to

the loss of material; and the licensees written operating and emergency procedures as

they pertained to the conduct of offshore radiography. The inspector also reviewed

written statements from all three licensee employees (Note: two of these employees

were not in the immediate vicinity and did not witness the subject event). The inspector

conducted a telephonic interview with the third licensee employee, a radiographer

assistant, who was attempting to move the radiography equipment and witnessed the

radiography exposure device fall into the Gulf of Mexico. Aside from Violation (B) noted

above, no deficiencies in records, training, execution of written procedures, or other

NRC requirements were identified as a result of the NRCs review.

In accordance with the NRC Enforcement Policy, Violation (A) would normally be

categorized at Severity Level III and considered for escalated enforcement action. In

particular, the quantity of radioactive material that the licensee lost, approximately

18 curies of iridium192, was in excess of 1,000 times the corresponding value in 10 CFR

Part 20 Appendix C (1 microcurie), and therefore meets the Severity Level III

enforcement example in the NRC Enforcement Policy, Section 6.7.c.10(a).

However, after considering the facts and circumstances of the loss of the byproduct

material, the NRC exercised enforcement discretion in accordance with Section 3.0 of

the Enforcement Policy, Use of Enforcement Discretion, and assessed Violation (A) at

Severity Level IV. The NRC determined that exercising discretion was appropriate

because the circumstances that resulted in the byproduct material falling into the Gulf of

Mexico and the inaccessibility of the byproduct material by any reasonable actions of

members of the public. The NRC determined that the byproduct material does pose any

material health, safety, or security risk to members of the public.

6

The licensees failure to control and maintain constant surveillance of licensed material

that is in a controlled or unrestricted area and that is not in storage was identified as a

violation of 10 CFR 20.1802. (150-00017/2020-001-01)

With regards to Violation (B), the NRC in its review of the records associated with the

radiographic activities on the day of the event, March 2, 2020, determined that the

licensee personnel failed to record the end-of-shift direct reading dosimeters, as required

by 10 CFR 34.47(d). Although radiographic activities were conducted prior to the loss of

the radiography camera, the event appeared to have overshadowed the licensees

attention with regard to this particular requirement. The licensee was not able to provide

any alternative method or record to account for the exposures received on the day of the

event. However, the licensees personal dosimeters, worn in accordance with

10 CFR 34.47(a) and exchanged monthly, would account for the exposures received on

March 2, 2020, in addition to the rest of the monitoring period.

The licensees failure to read and record the exposures from direct reading dosimeters

at the beginning and end of each shift was identified as a violation of 10 CFR 34.47(d).

(150-00017/2020-001-02)

5.

Corrective Actions

The licensee began exploring actions in a timely manner that were lessons learned from

going through the event. Examples of actions the licensee was exploring, including

those that may assist in preventing recurrence, included:

1. Updates to operating and emergency procedures to address proper manual

handling requirements.

2. Updates to operating and emergency procedures to address actions when a

source is dropped or lost to sea.

3. Research and development recovery plan for lost sources to sea.

4. Radiation safety officers to draft and share a letter explaining manual

handling process for moving cameras.

5. Technical evaluation of source life and tracking of the source and camera

internally, indefinitely.

6. Research and explore tethering devices to prevent dropped objects with

regards to the camera, crankout, and guide tube.

For Actions 1, 2, and 4, the licensee included specific feedback in the 30-day report,

dated March 23, 2020.

6.

Exit Meeting Summary

On May 4, 2020, the NRC conducted a final telephonic exit briefing with Oceaneering

International, Inc. The licensee was represented by Mr. Tommy Jacobs, Corporate

Radiation Safety Officer.

7

The licensee acknowledged the inspection findings and did not dispute any of the details

presented during the call.

Attachment

Supplemental Inspection Information

PARTIAL LIST OF PERSONS CONTACTED

Tommy Jacobs, Corporate Radiation Safety Officer

Aaron Lawrence, Morgan City, Louisiana, Site Radiation Safety Officer

Andre Domingue, Assistant Radiographer

INSPECTION PROCEDURES USED

87103 - Inspection of Materials Licensees Involved in an Incident or Bankruptcy Filing

87121 - Industrial Radiography Programs

ITEMS OPENED, CLOSED, AND DISCUSSED

Opened

150-00017/2020-001-01

VIO

Failure to control and maintain constant surveillance of

licensed material that is in a controlled or unrestricted area

and that is not in storage. (10 CFR 20.1802)

150-00017/2020-001-02 VIO

Failure to read and record the exposures from direct

reading dosimeters at the beginning and end of each shift.

(10 CFR 34.47(d))

Closed

None

Discussed

None

LIST OF ACRONYMS USED

ADAMS

Agencywide Documents Access and Management System

CFR

Code of Federal Regulations

NMED

Nuclear Material Events Database

NRC

U.S. Nuclear Regulatory Commission