ML20197A820

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Insp Rept 30-07609/97-01 on 971117-1205.Violations Noted. Major Areas Inspected:Organization & Scope of Program, Cessation of Principal Activities & Change of Ownership
ML20197A820
Person / Time
Site: 03007609
Issue date: 12/17/1997
From: Madera J
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:
Shared Package
ML20197A808 List:
References
30-07609-97-01, 30-7609-97-1, NUDOCS 9712230202
Download: ML20197A820 (7)


See also: IR 07100117/2012005

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U.S. NUCLEAR REGULATORY COMMISSION -

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REGIONlli

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Docket No.:

030-07609

License No.:

13-01264-05

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030-07609/97001(DNMS)

' Report No.:

Licensee:

Mallinckrodt Veterinary, Inc.

675 McDonnell Blvd.

P.O. Box 5840 =

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St. Louis, MO 63134.

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. l.ocation:

1331 S. First Street

Terre Haute, Indiana

Dates of Inspection:

November 17-18,1997, with continued NRC

ia-office review through December 5,1997

Inspectors:

Mike McCann, Senior Health Physicist

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Robert Gattone, Radiation Specialist

Approved By:

John R. Madera, Chief

Materials inspection Branch 1

Division of Nuclear Materials Safety

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9712230202 971217

PDR. ADOCK 03007609

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EXECUTIVE SUMMARY

Mallinckrodt Veterinary, Inc.

NRC Inspection Report 030-07609/97001(DNMS)

This was a reactive, announced inspection to: (1) review the circumstances surrounding a

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change of ownership; (2) assess stored radioactive waste; and (3) determirce whether activities

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authorized by the license were conducted safely and in accordance with NRC requirements.

The inspectors identified that the licensee abandoned its radiation safety program incident to

cessation of principal activities and before it had decommissioned the facilities to moet NRC

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release criteria. Through lack of oversight, the licensee did not ke7p itself apprised of NRC

regulatory requirements. Four apparent violations were identified.

The first apparent vio!stion concemed failure to amend the license to authorize a Radiation

Safety Officer (RSO) chaqge in 1994. The cause of the apparent violation appeared to be

licensee failure to continue oversight of its radiation safety program after it terminated principal

activities. Through lack of oversight, the licensee did not keep itself apprised of NRC regulatory

requiremertis, including the need to amend its license to remove or replace its RSO.

The second apparent violation concemed failure to certify the disposition of licensed material

that was used in separate buildings that were relcased to unrestricted use and subsequently

demolished. The cause of the epparent violation appeared to be licensee failure to continue

oversight of its radiation safety program after it terminated principal activities. Through lack of

oversight, the licensee did not keep itself apprised of new NRC regulatory requirements,

including the provistors of the Decommissioning Timeliness Rule.

The third apparent violation concemed failure to provide NRC with written notification within

60 days that no principal activities were conducted in unreleasable areas for 24 months The

cause of the violation appeared to be identical to that which resulted in the second apparent

violation.

The fourth apparent violation concemed failure to obta5 prior NRC consent of a change nf

ownership.

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RaportDatalin

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Organization and Scope of Program

NRC Byproduct Material License No.13-01264-05 authorized Mallinckrodt Veterinary,

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inc. (licensee) to posSese and use millicurie quantit'9s of several radionuclides in any

fomt for research and development, including animal studies. Additionally, the license

authorized possession and use of several sealed sources containing millicurie quantities

of nickel-63 for use in gas chromatographs for sample analysis.

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During this inspection, the ricensee's possession of licensed material was limited to

radioactive waste locatej in four separate areas. Low millicurie quantities of hydrogen-

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3, cart >on 14, and nickel-61 as well as low kilogram quantitles of uranium and thorium

were stored within labeled, sealed containers inside of a secured area. Another area

was used to store severallabeled, secured barrels of iodine 125 waste that had gone

through ten half lives in 1995. Uncharacterized radioactive waste remained in a buried

vault on the licensee's premises. Microcurie quantities of hydrogen 3 and carbon 14

were buried at another of the licensee's faciuties located west of the Wabash River.

At the time of the inspection, no licensee staff who were knowledgeable about licensed

activities were available because they had left the licensee's employ when licensed

activities ceased in December 1993. The licerisee's RSO left the licensee's employ

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soon afterward in 1994. The licensee sold its assets, including control of licensed

material, to Schering Plough Animal Health (SPAH) during a change of ownership on

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N ,a 30,1997.

Most of the information about what happened prior to the change of ownership was

obtained from an employee who worked for the licensee and was subsequently

employed by SPAH Incident to the change of ownership. Although the employee was

not involved with licensed activities while employed by the licensee, he became

informed of the licensed material and gained access to related records soon before the

change of ownership occurred.

2.

Cessation of Principal Activities

2.1

InspectioILScope

The inspectors interviewed people who were formally employed by the licensee and who

had some knowledge about licensed activities that were conducted in the past. The

inspectors leviewed records that reflected licensed activities including radiation surveys

and radioactive waste disposal.

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The inspectors toured the facilities and performed itdependent and confinnatory

measurements in selected areas where radioactive materials had been used and stored.

2.2

Observations _r.nd Findings

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The licensee was authorized to possess millicuries quantitles of licensed material to

perform research and development, including animal studies. Research involved testing

and developing products for animal livestock. Licensed material had half-lives less than

OG days except for thiorine 36, nickel-63 (sealed sources in gas chromatographs),

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hydrogen 3 and carbon 14,

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The last NRC inspection was conducted on September 29,1993. The inspector

identified that most licensed activities had ceased. Only one active authorized user

remained performing infrequent experiments with low microcurie quantities of

phosphorus 32 in a single lab. In addition to phosphorus 32, the licensee possessed

millicurie quantities of unused cart >on 'i4 stock and carbon 14 and hydrogen 3

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radioactive waste. The licensee had a good accounting of alllicensed materials on

hand, and had planned to dispose of it incident to a planned license termination in 1994.

Principal activities ceased in December 1993. Soon afterward, personnel involved with

licensed activities left the licensee's employ. The RSO left his position in 1994, and his

position was not refilled. License Condition 11.B. of NRC License Number 13-01264-05

required that a specifically named individual be the RSO. Failure to have the

specifically named Individual act as the RSO since 1994 is an apparent violation

of License Condition 11.B.

Some of the buildings where licensed material had been used or stored were

decommissioned and demclished by the licensee since the last inspection. Specifically,

Buildings 3 and 84 located at 1331 S. First Street, Terre Haute, Indiana were und for

licensed activities and were demolished in late 1995 and 1996, respectively. The

licensee performed close-out surveys of these buildings prior to release. However, the

licensee did not provide the NRC with certification that all licensed material within those

buildings was disposed of. Through lack of oversight, the licensee did not keep .self

apprised of new NRC regulatory requirements, including the provisions of 10 CFR 30.36 (Decommissioning Timeliness Rule) which became effective on August 15,1994.

The regulation 10 CFR 30.36(j) requires, in part, that licensees certify the disposition of

alllicensed material, including accumulated wastes, by submitting a completed NRC

Form 314 or equivalent information to the NRC. Failure to certify the disposition of

all licensed material in Buildings 3 and 84 by submitting the required information

to the NRC is an apparent violation of 10 CFR 30.36(j).

Other buildings where licensed meterial had been used remained standing during this

inspection.

The inspectors reviewed available records of close-out radiation surveys that were

performed in Buildings 3 and 84, and other buildings where licensed material had been

used and remained standing, in general, the records did not include enough information

to reflect that the facilitNs met the NRC's criteria for release to unrestricted use.

Specifically, records indicated: (1) results in units of counts per minute rather than units

of activity; (2) very few areas had been sampled to represent large areas of use; and

(3) ambient dose rate surveys were used to close-out areas where low energy beta

emitters may have been used.

The inspectors toured all of the rooms that remained standing and were known to have

been used to perform licensed activities prior to being closed out by the licensee. The

inspectors performed ambient exposure rate and removable contamination surveys of

selected areas within these rooms. The inspector's radiation survey results did not

indicate that the licensee had released areas that did not meet the NRC release criteria.

Radioactive waste was in storage at the licensee's facilities in Terre Haute, Indiana

without the oversight of a knowledgeable person from 1994 until June 1997. Access to

the areas where unburied licensed material was stored was limited to a supervisor who

did not go into the storage areas.

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Buildings 209 and 201 of the licensee's facilities locateo at 2458 Chr mberlain Road,

Terre Haute, Indiana contained stored radioactive waste. Building 209 contained low

millicurie quantities of hydrogen 3, cart >on 14, and nickel-63 as well as low kilogram

quantities of uranium and thorium stored within 21 labeled, sealed containers and one

refrigerator. The inspectors verified that, based on the number of containers and

associated labeling, the inventory correlated with an inventory that was performed in

August 1997. The area was secured in a locked cage, and the only key was in the

possession of an Individual who had received radiation safety training in August 1997.

The inspectors performed ambient dose rate and removable contamination surveys of

tne area. The maximum results were 1 mR/hr (10 microsieverts per hour) at the surface

of a drum containing the uranium and thorium waste. All of the removable

contamination survey results were essentially indistinguishable from background.

Building 201 contained seven labeled barrels of lodine 125 waste that, based on

labeling, had gone through ten half lives in 1995. The inspectors verified that, based on

the number of containers and associated labeling, the inventory correlated with an

inventory that was performed in August 1997. The area was secured in a locked cage,

and the only key was in the possession of an Individual who had received radiation

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safety training in August 1997. The inspectors performed ambient dose rate and

removable contamination tsurveys of the area. The maximum results were essentially

indistinguishable from background.

The licensee's facilities at 1331 S. First Street, Terre Haute, Indiana contained

uncharacterized radioactive waste in a buried vault that was vented with a pipe above

ground level. Based on a letter dated March 29,1963, low millicurie quantitles of

carbon 14 and an unquantified amount of chlorine 36 was placed into the vault. No

other documentation of vault entries was found. The size and construction of the vault

was unknown. The only access to the vault was a six inch vent pipe that extended

above the ground surface. The opening of the pipe was affixed with a steel cap. A lock

box enshrouded the pipe to prevent unauthorized access. The lock box was posted to

warn about the presence of radioactive material and Inform interested persons about

who to contact regarding questions. The inspectors performed ambient dose rate and

removable contamination surveys of the area near the pipe opening as well as the

approximate five foot length of the pipe leading to the vault contents. The results were

essentially indistinguishable from background.

Basod on a memo from 1977, microcurie quantitles of hydrogen 3 and carbon-14 were

buried in accordance with 10 CFR 20.304 at another of the licensee's facilities located

west of the Wabash River. The location of the burial site within the 400 acre area was

unknown. The inspectors toured the area by vehicle. The area was used as a dumping

ground for disposal of non radioactive hazardous wastes in accordance with EPA

oversight. The area appeared remote, and without bodies of water visible on the

surhee. The inspectors performed ambient Me rate surveys of selected areas. The

results were indistinguishable from background.

The Decommisdoning Timeliness Rule required that, among other things, licensees

provide timely idC notification that no principal activities were conducted for a period of

24 months in areas that contained radioactivity in excess of NRC requirements for

release. The licensee ceased principal activities in December 1993, and the radioactive

waste in storage at the licensee's facilities exceeded the NRC requirements for release.

Therefore, the licensee should have notified the NRC no later than October 15,1996

(26 months from the effective date of the rule, August 15,1994), in accordance with the

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Decommissioning Timeliness Rule. Failure to provide timely NRC notification that

no principal activities were conducted for a period of 24 months in areas that

contained radioactivity in excess of NRC requirements for release is an apparent

violation of 10 CFR 30.36(d).

SPAH planned to hire a contractor by December 1997 to characterize the waste within

the vault by March 1998, and remediate the vault by December 1998. Additionally,

SPAH planned to ship all remaining unburied waste to an authorized p3rson by January

1998.

SPAH was awaiting approval of a license amendment to change the ownership, name,

RSO, and use on the license.

2.3

Conclusions

The inspection identified three apparent violations regarding failure to: (1) amend the

license to change the RSO; (2) certify the disposition of licensed material that was used

in separate buildings that were released to unrestricted use and subsequently

demolished; and (3) provide timely NRC notification that no principal activities were

conducted for a period of 24 months in areas that contained radioactivity in excess of

NRC requirements for release. The cause of these apparent violations appeared to be

licensee failure to continue oversight of its radiation safety program after it terminated

principal activities in December 1993.

3.

Change of ownership

3.1

Inspection _ Scope

The inspectors interviewed an individual who was formally employed by the licensee

and who was involved with the change of ownership.

3.2

Obsentations_and Findings

in June 1997, an individual representing the licensee learned that a planned sale of

licensed material and associated facilities to SPAH involved an NRC license, in mid

June 1997, the individual telephoned the NRC to request guidance about Getting

authorization for the change of ownership. A letter dated June 27,1997, was sent to the

NRC requesting a license amendment to authorize: (1) the change of ownership;(2) a

new RSO; (3) a new storage location; and (4) a change from use authorization to

storage only incident to disposal. The change of ownership occurred on June 30,1997,

and it was sooner than originally anticipated. The NRC had not given written consent to

the change of ownershir,. The regulation 10 CFR 30.34(b) requires, in part, that no

NRC license nor any right under a license shall be transferred or assigned through

transfer of control of any license to any person, unless the Commission gives its consent

in writing. Fallure to obtain NRC written consent of the change of ownership on

June 30,1997, is an apparent violation of 10 CFR 30.34(b).

3.3

Conclusions

The inspectors identified an apparent violation regarding failure to obtain NRC written

consent of a change of ownership.

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Exit Meeting Summ.ary

The inspectors discussed the preliminary conclusions described in this report with a licensee

representative during an exit meeting conducted at the licensee's facilities at 1331 S. First

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Street Terre Haute, Indiana on November 18,1997. The licensee did not identify any

information reviewed during this inspection and selected for inclusion in l'> s !nspection report as

proprietary in nature.

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PARTIAL LIST OF PERSONS CONTACTED

Anthony Sullivan, Attomey

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Guinn Doyle, Attomey

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Rick Chiesz, Site Manager, Schering Plough Animal Health

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Michael McKee, Manager, Environmental Health and Safety, Schering Plough Animal Health

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Robert Clarkson, Supervisor of Farm Activities, Schering Plough Animal Health

Leroy Schatz, Site Services Technician, Schering Plough Animal Health

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