ML20134J313

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Forwards Insp Rept 15000030/96-02 on 960604-1105. Violations Noted.Insp & Investigation Rept 4-96-027 Identified One Apparent Violation Being Considered for Escalated Enforcement Action
ML20134J313
Person / Time
Site: 15000030
Issue date: 11/12/1996
From: Scarano R
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
To: Abeyta R
TESTING LABORATORIES, INC.
Shared Package
ML20134J314 List:
References
EA-96-447, NUDOCS 9611150146
Download: ML20134J313 (5)


See also: IR 015000030/1996002

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November 12, 1996

EA: 96-447

Mr. Ralph Abeyta

President

Testing Laboratories, Inc.

P. O. Box 1144

Alamogordo, New Mexico 88311-1144

SUBJECT: NRC INSPECTION REPORT 150-00030/96-02 AND

lNVESTIGATION REPORT 4-96-027

Dear Mr. Abeyta:

On November 5,1996, the NRC completed an inspection of activities performed by Testing

Laboratories, Inc. (TLl) at federal facilities in the state of New Mexico. As discussed with

you during the inspection, the federal f acilities where TLI conducted activities using

portable moisture / density gauges were determined to be areas where the NRC maintains

jurisdiction for regulating the use of byproduct material. In addition to the inspection, the

NRC Office of investigation's Field Office, Region IV, conducted a concurrent investigation

which was completed on September 26,1996. The results of the inspection and

investigation were discussed with you during a telephonic exit briefing on November 5,

1996, and are described in detail in the enclosed report.

The purpose of the inspection and investigation was to determine whether activities

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conducted by TLI at Holloman Air Force Base (AFB) and White Sands Missile Range

(WSMR) were performed safely and in accordance with NRC requirements. The inspection

'and investigation identified one apparent violation which is being considered for escalated

enforcement action in accordance with the " General Statement of Policy and Procedure for

NRC Enforcement Actions" (Enforcement Policy), NUREG-1600. The apparent violation

involved the failure to comply with 10 CFR 30.3 which requires, in part, that except for

persons exempt as provided in 10 CFR Parts 30 and 150, no person shall possess or use

byproduct material except as authorized in a specific or general license issued pursuant to

Title 10, Chapter 1, of the Code of Federal Regulations. The inspection and investigation

determined that TLI performed activities at both Holloman AFB and WSMR using byproduct

material on numerous occasions between 1991 and 1996 without being authorized to

conduct such activities under either a specific or general NRC license.

Although a specific or general NRC license was required to perform activities using

byproduct materialin areas under exclusive federal jurisdiction within an Agreement State

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during the period in question, we note that as a matter of practice the NRC has accepted a

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Form 241, and the applicable fee, in lieu of an application for an NRC license from

Agreement State licensees seeking authorization to perform activities in areas of exclusive

federal jurisdiction within an Agreement State. Our review of TLl's activities at federal

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facilities in the state of New Mexico confirmed that TLI filed a Form 241 to report proposed

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activities at Holloman AFB and WSMR in November 1991, October 1994, and March

1996. However, the notifications provided by TLI did not identify all dates that TLI worked

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in areas under NRC jurisdiction in calendar years 1991,1994 and 1996. In addition, TLI

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failed to obtain authorization prior to performing activities at WSMR and Holloman AFB in

calendar years 1992,1993 and 1995.

Based on the investigation findings, it appears that the vice president, also the radiation

safety officer (RSO), was aware of the requirement to obtain' authorization from the NRC

prior to performing activities at the above noted locations. Specifically, the inspection and

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investigation disclosed that the RSO was made aware of the requirement to obtain

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authorization from the NRC by staff at WSMR and that TLI filed a Form 241 when

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prompted by the radiation safety officer at WSMR. However, the RSO acknowledged

during the inspection and investigation that TLI did not report all activities conducted at

Holloman AFB and WSMR during calendar years 1991,1992,1993,1994,1995 and

1996 because of concerns about paying the associated fees.

The NRC considers the failure to obtain appropriate authorization prior to conducting

licensable activities in areas under its jurisdiction to be a matter of significant regulatory

concern. We are further concerned that as admitted by the RSO, TLI was aware of the

requirement to obtain authorization from the NRC, or to provide notification, prior to

conducting activities at the above noted facilities but chose not do so because of financial

considerations.

A predecisional enforcement conference to discuss these apparent violations has been

scheduled for November 26,1996 at 10:00 a.m. (CT). The decision to hold a

predecisional enforcement conference does not mean that the NRC has determined that a

violation has occurred or that enforcement action will be taken. Accordingly, no Notice of

Violation is presently being issued for t'hese inspection findings. In addition, please be

advised that the number and characterization of apparent violations described in the

enclosed inspection report may change as a result of further NRC review. This conference

is being held to obtain information to enable the NRC to make an enforcement decision,

such as a common understanding of the facts, root causes, missed opportunities to

identify the apparent violation sooner, corrective actions, significance of the issues and the

need for lasting and effective corrective action. In particular, we expect you to address

decisions made by TLI managern ta not provide notification to the NRC, or otherwise seek

authorization, regarding TLl's activities at Holloman AFB and WSMR.

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In addition, the conference is an opportunity for you to point out any errors in our inspec-

tion report and for you to provide any information concerning your perspectives on 1) the

severity of the violations, 2) the application of the factors that the NRC considers when it

determines the amount of a civil penalty that may be assessed in accordance with

Section VI.B.2 of the Enforcement Policy, and 3) any other application of the Enforcement

Policy to this case, including the exercise of discretion in accordance with Section Vll.

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-In accordance with 10 CFR 2.790 of the NRC's " Rules of Practices," a copy of this letter

will be placed in the NRC Public Document Room (PDR).

Should you have any questions concerning this inspection, please contact

Mr. Mark R. Shaffer at (817) 860-8287 or Ms. Linda Howell at (817) 860-8213.

Sincerely,

Ross A. Scarano, Director

Division of Nuclear Materials Safety

Docket: 150-00030

License: New Mexico DM223-10

Enclosures:

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1. _ NRC Inspection Report 150-00030/96-02

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2. Conference Agenda

3 NRC Enforcement Policy, NUREG-1600

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' 4.10 CFR Parts 30 and 150

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cc w/ Enclosures 1 & 2:

' New Mexico Radiation Control Program Director

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