ML20139A208

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EA-20-046; Bayou Inspection Services, Inc.; Bayou Inspection Services, Inc. - NRC Inspection Report 15000017/2020002
ML20139A208
Person / Time
Site: 15000017
Issue date: 05/19/2020
From: Mary Muessle
NRC Region 4
To: Rentrop J
Bayou Inspection Services
References
EA-20-046 IR 2020002
Download: ML20139A208 (9)


See also: IR 015000017/2020002

Text

May 19, 2020

EA-20-046

Joey Rentrop

Corporate Radiation Safety Officer

Bayou Inspection Services, Inc.

318 DeGravell Rd

Amelia, LA 70340

SUBJECT: BAYOU INSPECTION SERVICES, INC. - NRC INSPECTION

REPORT 150-00017/2020-002

Dear Mr. Rentrop:

This letter refers to our in-office document review of information submitted by Bayou Inspection

Services to the U.S. Nuclear Regulatory Commission (NRC) on February 24, 2020, regarding

performance of licensed activities in offshore waters. The records review, conducted between

February 24 and April 16, 2020, related to activities performed under your NRC general license,

which was granted under Title 10 of the Code of Federal Regulations (10 CFR) 150.20,

Recognition of Agreement State Licenses, to ensure compliance with NRC requirements. The

enclosed report presents the results of the review. A final exit briefing was conducted

telephonically with you on May 13, 2020.

Based on our review of the submitted information, one apparent violation was identified and is

being considered for escalated enforcement action in accordance with the NRC Enforcement

Policy. The current Enforcement Policy is included on the NRCs Web site at

http://www.nrc.gov/about-nrc/regulatory/enforcement/enforce-pol.html. The apparent violation

involved the failure to file a submittal containing an NRC Form 241, a copy of the Agreement

State specific license, and the appropriate fee with the appropriate regional office at least 3 days

prior to engaging in licensed activities in offshore waters for calendar year 2020.

Before the NRC makes its enforcement decision, we are providing you an opportunity to

(1) respond to the apparent violation addressed in this inspection report within 30 days of the

date of this letter, (2) request a pre-decisional enforcement conference (PEC), or (3) request

alternative dispute resolution (ADR). If a PEC is held, it will be open for public observation and

the NRC will issue a press release to announce the time and date of the conference. If you

decide to participate in a PEC or pursue ADR, please contact Dr. Heather Gepford

at (817) 200-1156 within 10 days of the date of this letter. A PEC should be held within 30 days

and an ADR session within 45 days of the date of this letter.

If you choose to provide a written response, it should be clearly marked as a Response to

Apparent Violation in NRC Inspection Report 150-00017/2020-002; EA-20-046, and should

include for each apparent violation: (1) the reason for the apparent violation or, if contested, the

basis for disputing the apparent violation; (2) the corrective steps that have been taken and the

J. Rentrop 2

results achieved; (3) the corrective steps that will be taken; and (4) the date when full

compliance will be achieved.

Your response may reference or include previously docketed correspondence, if the

correspondence adequately addresses the required response. Additionally, your response

should be sent to the NRCs Document Control Center with identical copies mailed to

Ms. Mary Muessle, Director, Division of Nuclear Materials Safety, Region IV, 1600 East Lamar

Boulevard, Arlington, TX 76011, and emailed to R4Enforcement@nrc.gov, within 30 days of the

date of this letter. If an adequate response is not received within the time specified or an

extension of time has not been granted by the NRC, the NRC will proceed with its enforcement

decision or schedule a PEC.

If you choose to request a PEC, the conference will afford you the opportunity to provide your

perspective on these matters and any other information that you believe the NRC should take

into consideration before making an enforcement decision. The decision to hold a PEC does

not mean that the NRC has determined that a violation has occurred or that enforcement action

will be taken. This conference would be conducted to obtain information to assist the NRC in

making an enforcement decision.

The topics discussed during the conference may include information to determine whether a

violation occurred, information to determine the significance of a violation, information related to

the identification of a violation, and information related to any corrective actions taken or

planned. In presenting your corrective action, you should be aware that the promptness and

comprehensiveness of your actions will be considered in assessing any civil penalty for the

apparent violations. The guidance in the enclosed excerpt from NRC Information Notice 96-28,

Suggested Guidance Relating to Development and Implementation of Corrective Action, may

be helpful.

In lieu of a PEC, you may request ADR with the NRC in an attempt to resolve this issue. ADR is

a general term encompassing various techniques for resolving conflicts using a third party

neutral. The technique that the NRC has decided to employ is mediation. Mediation is a

voluntary, informal process in which a trained neutral (the mediator) works with parties to help

them reach resolution. If the parties agree to use ADR, they select a mutually agreeable neutral

mediator who has no stake in the outcome and no power to make decisions. Mediation gives

parties an opportunity to discuss issues, clear up misunderstandings, be creative, find areas of

agreement, and reach a final resolution of the issues.

Additional information concerning the NRC's program can be obtained at

http://www.nrc.gov/about-nrc/regulatory/enforcement/adr.html. The Institute on Conflict

Resolution at Cornell University has agreed to facilitate the NRC's program as a neutral third

party. Please contact Institute on Conflict Resolution at 877-733-9415 within 10 days of the

date of this letter if you are interested in pursuing resolution of this issue through ADR.

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.

You will be advised by separate correspondence of the results of our deliberations on this

matter.

In accordance with 10 CFR 2.390 of the NRCs Rules of Practice, a copy of this letter,

its enclosure(s), 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 NRCs

J. Rentrop 3

Agencywide Documents Access and Management System (ADAMS), accessible from the NRC

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

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

made available to the public without redaction.

If you have any questions concerning this matter, please contact Dr. Heather Gepford of my

staff at (817) 200-1156.

Sincerely,

Mary C. Digitally signed by

Mary C. Muessle

Muessle Date: 2020.05.19

15:38:50 -05'00'

Mary C. Muessle, Director

Division of Nuclear Materials Safety

Docket No.: 150-00017

License No.: General License

under 10 CFR 150.20

Enclosure:

NRC Inspection Report 150-00017/2020-002

cc w/enclosure:

Jeff Dauzat, Administrator

State of Louisiana Radiation Program

NUCLEAR REGULATORY COMMISSION

REGION IV

Docket No.: 150-00017

License No.: General License under 10 CFR 150.20

Report No.: 150-00017/2020-002

EA No.: EA-20-046

Licensee: Bayou Inspection Services, Inc.

Amelia, Louisiana

Location Inspected: In-office review

Inspection Dates: In-office review February 24 - April 16, 2020

Exit Meeting Date: May 13, 2020

Inspector: Latischa M. Hanson, Health Physicist

Materials Licensing and Decommissioning Branch

Division of Nuclear Materials Safety

Approved by: Heather J. Gepford, Ph.D., CHP, Chief

Materials Licensing and Decommissioning Branch

Division of Nuclear Materials Safety

Attachment: Supplemental Inspection Information

Enclosure

EXECUTIVE SUMMARY

Bayou Inspection Services, Inc.

NRC Inspection Report 150-00017/2020-002

Program Overview

Bayou Inspection Services, Inc. (licensee) is authorized under the State of Louisiana

Radioactive Materials License LA-7112-L01 to possess and use byproduct material,

including iridium-192, for industrial radiographic operations, and as of February 24, 2020,

is authorized to perform these same licensed activities at temporary job sites in NRC

jurisdiction under a general license pursuant to 10 CFR 150.20. (Section 1)

NRC In-Office Review Summary

One apparent violation was identified involving the licensees failure to file an initial NRC

Form 241, and pay the required reciprocity fee, prior to performing licensed activities in

offshore waters for calendar year 2020. This apparent violation was identified when the

licensee submitted an initial notification of planned work activities to be performed in NRC

jurisdiction. The NRC staff determined that Bayou Inspection Services had not submitted an

initial NRC Form 241, nor had the licensee paid the fee, prior to conducting work in offshore

waters on February 16, 2020. (Section 2)

Corrective Actions

The licensees immediate corrective action was to submit the appropriate information and

required reciprocity fee to the NRC on February 18, 2020. The NRC subsequently granted

the reciprocity request in a letter dated February 24, 2020. Long-term corrective actions are

to be determined. (Section 3)

2

REPORT DETAILS

1 Program Overview

1.1. Program Scope

Bayou Inspection Services, Inc. (licensee) is authorized under the State of Louisiana

Radioactive Materials License LA-7112-L01 to possess and use byproduct material,

including iridium-192, for industrial radiographic operations at their main office and

temporary job sites in the State of Louisiana.

Following receipt of the licensees initial NRC Form 241 and reciprocity fee in the

Region IV office on February 18, 2020, the licensee was authorized to perform industrial

radiography at temporary job sites under a general license pursuant to 10 CFR 150.20,

Recognition of Agreement State Licenses.

1.2. Observations and Findings

Following review of the reciprocity information submitted by the licensee and researching

the local database of initial NRC Form 241 requests/approvals, the NRC license

reviewer determined that the licensee had not submitted an initial NRC Form 241, nor

had the licensee paid the fee, for the work to be performed in calendar year (CY) 2020.

2 Findings

2.1 In-Office Review Scope

On February 24, 2020, the NRC regional license reviewer received an initial reciprocity

notification dated February 18, 2020, for work to be performed in offshore waters from

February 16-23, 2020. The license reviewer conducted document reviews and

conducted interviews with licensee personnel to establish whether reciprocity could be

granted.

On February 18, 2020, the licensee, a State of Louisiana licensee, filed an NRC

Form 241 describing an initial notification of planned work activities. Specifically,

industrial radiography was going to be performed in offshore waters on an oil/gas

platform in the Alaminos Canyon, Block 772 in the Gulf of Mexico, from February 16-23,

2020.

Upon reviewing the information submitted by the licensee and researching the local

database of initial NRC Form 241 requests/approvals, the license reviewer determined

that the licensee had not submitted an initial NRC Form 241, nor had the licensee paid

the fee for the work to be performed in CY 2020. Since work was performed in offshore

waters beginning on February 16, 2020, the licensee was required to provide this

information to the NRC by February 13, 2020.

2.2 Observation and Findings

Title 10 CFR 150.20(a)(1) requires, in part, that any person who holds a specific license

from an Agreement State is granted a general license to conduct the same activity in

areas of exclusive federal jurisdiction, subject to the provisions of 10 CFR 150.20(b).

3

Title 10 CFR 150.20(b)(1) requires, in part, that any person engaging in activities in

areas of exclusive federal jurisdiction shall, at least 3 days before engaging in each

activity for the first time in a calendar year, file a submittal containing an NRC Form 241,

Report of Proposed Activities in Non-Agreement States, a copy of its Agreement State

specific license, and the appropriate fee with the Regional Administrator of the

appropriate NRC regional office.

Contrary to the above, from February 16 through 18, 2020, the licensee, a licensee of

the State of Louisiana, engaged in activities in offshore waters without filing a submittal

containing an NRC Form 241, Report of Proposed Activities in Non-Agreement States,

a copy of its Agreement State specific license, and the appropriate fee with the Regional

Administrator of the NRC Regional Office at least 3 days before engaging in each

activity for the first time in a calendar year. Specifically, the licensee performed licensed

activities in the Gulf of Mexico beginning on February 16, 2020, but did not submit an

NRC Form 241, a copy of its Agreement State specific license, and the appropriate fee

until February 18, 2020.

2.3 Conclusions

The NRC identified an apparent violation involving the licensees failure to file an initial

NRC Form 241, to provide a copy of the Agreement State specific license, and pay the

reciprocity fee, prior to engaging in licensed activities in offshore waters beginning on

February 16, 2020, as required by 10 CFR 150.20(b)(1). (AV 150-00017/2020-002)

3 Corrective Actions

The radiation safety officer for the licensee stated that his company was quite busy and

he realized at the last minute that he needed to file. The radiation safety officer filed the

documentation and paid the fee upon recognition of the oversight on February 18, 2020,

after work had commenced.

The licensees immediate corrective action was to submit the appropriate information

and required reciprocity fee to the NRC on February 18, 2020. The NRC subsequently

granted the reciprocity request in a letter dated February 24, 2020. Long-term corrective

actions are to be determined.

4 Exit Meeting Summary

The license reviewer presented the preliminary findings at the commencement of the

in-office review on February 24, 2020, with Joey Rentrop, Radiation Safety Officer, for

the licensee. On May 13, 2020, a final telephonic exit meeting was conducted with

Joey Rentrop, Radiation Safety Officer. The licensee acknowledged the findings and

did not dispute any of the details presented during the exit call.

4

SUPPLEMENTAL INSPECTION INFORMATION

PARTIAL LIST OF PERSONS CONTACTED

Joey Rentrop, Radiation Safety Officer

INSPECTION PROCEDURES USED

87121 Industrial Radiography Programs

ITEMS OPENED, CLOSED, AND DISCUSSED

Opened

15000017/2020-01 AV Failure to file an initial NRC Form 241 prior to engaging in licensed

activities in offshore waters

Closed

None

Discussed

None

Attachment

ML20139A208

X SUNSI Review ADAMS: X Non-Sensitive X Publicly Available Keyword:

by: LMH X Yes No Sensitive Non-Publicly Available NRC-002

OFFICE MLDB C:MLDB TL:ACES ORA D:DNMS

NAME LMHanson HJGepford JRGroom DMCylkowski MCMuessle

SIGNATURE /RA/ /RA/ /RA/ /RA/ Mary C.

DATE 5/14/2020 5/14/2020 5/14/2020 5/14/2020

Digitally signed by Mary C. Muessle

Muessle

Date: 2020.05.19 15:39:38 -05'00'