ML20207E486

Insp Rept 99990003/99-02 on 990423 & Followup Exit Meeting on 990526.Violations Noted.Major Areas Inspected:Review of Circumstances,Root Contributing Causes & Licensee C/A with Regard to Reported Loss/Theft of Loran Control Sys

ML20207E486
Person / Time
Issue date:	06/01/1999
From:	NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
To:
Shared Package
ML20207E477	List: ML20207E472 ML20207E486
References
REF-QA-99990003-990601 99990003-99-02, 99990003-99-2, NUDOCS 9906070051
Download: ML20207E486 (7)

Text

U.S. NUCLEAR REGULATORY COMMISSION REGION lli Docket No: 999-90003 License No: General License (10 CFR 31.5)

Report No: 9S9-90003/99002(DNMS)

Licensee: Arvin Industries, Inc.

Location: 101 Center Street Greenwood,IN 46143 Date of inspection: April 23,1999, and followup exit meeting on May 26,1999 Inspector: Darrel G. Wiedernan, Senior Health Physicist Approved By: Geoffrey C. Wright, Chief Materials inspection Oranch Division of Nuclear Materials Safety l

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9906070051 990601 RE03 GA999 EPfve****

99990003 PDR

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EXECUTIVE

SUMMARY

l Arvin Industries, Inc.

NRC Inspection Report 999-90003/99002(DNMS) l l This specialinspection included a review of the circumstances, root and contributing causes, and licensee corrective actions with regard to a reported loss / theft of a Loran Control Systems, l Model 5310 thickness gauge, Serial No. 48761-1, source Serial No. 2786LX, containing  !

1.0 curie (37 gigabecquerel (GBq)) of americium-241 that was reported lost to the NRC on j April 10,1999.

During the course of closing its facility in Greenwood, Indiana, Arvin was in the process of l selling various pieces of process equipment and transferring other pieces of equipment to other l Arvin facilities. On or about March 29,1999, during the closure process, the nuclear gauge was apparently placed on a truck that was transporting unneeded process equipment to a local scrap metal dealer, Kroot Salvage in Columbus, Indiana. l i

When the gauge did not arrive at Arvin's Central Tubing Facility in Columbus, Indiana, on '

March 31,1999 as planned, the Technical Manager at the Tubing Facility telephoned the j

' Facilities Manager at the Greenwood facility to inquire about why it did not arrive as expected. l The Facilities Manager at the Greenwood facility indicated that he was not informed that the nuclear gauge was to be transferred to the Tuuing Facility and remembered that he saw the gauge on a truck operated by Kroot Salvage on March 29,1999.

Arvin industries staff responded to Kroot Salvage on March 31,1999, to search for the gauge.

According to Kroot Salvage employees, when the truck arrived they could not remember seeing the gauge at the scrap yard and assumed that the missing gauge and other process equipment were not on the truck as indicated by the Arvin staff.

The licensee believes that despite their extensive investigation efforts, it was probably taken for its scrap value by someone that was unaware of the nature of the device.

The NRC inspector identified two apparent violations of NRC requirements which include:

(1) 31.5(c)(8), failure to transfer or dispose of a device containing byproduct material only by i transfer to persons holding a specific license, and (2) 49 CFR 172.202(a) and (b), failure to  !

prepare shipping papers for a shipment of hazardous materials (radioactive material).

2 J

F4 Report Details 1.0 Program Summary Arvin Industries is a manufacturer of automot!ve emission, filter, and exhaust systems.

Its customers include manufacturers such as General Motors, Ford as well as foreign automakers Toyota and Volkswagen. Arvin_ also makes automotive replacement .

products sold to customers woridwide under its own brand names (such as Gabriel, Maremont and TIMAX) and under various private-label names as Pep Boys, Sears and Meineke.

Arvin industries employs approximately 14,000 people at over 70 facilities in 19 countries. '

1.1 Seauence of Events Approximately 5 years ago a decision was made by Arvin Industries management to slowly close-down the Greenwood, Indiana, facility. In approximately March 1998, the

' Arvin management were made aware that the Greenwood facility had a general licensed nuclear gauge and the nuclear gauge would require special handling and could not be disposed as ordinary scrap or transfer to non-licensed companies.

For the remaining surplus manufacturing equipment, three transfer options were used:

(1) transfer to other Arvin facilities, (2) sold to "outside" companies, and (3) sold as scrap to a local scrap dealer (Kroot Salvage).

Arvin's Central Tubing Facility in Columbus, Indiana, indicated that they could use/ store the nuclear gauge if no other feasible options were available, such as use at another Arvin facility. On March 22,1999, the gauge was tagged to " hold" for the Tubing Facility and placed on a wooden pallet that was attached and held in place with metal bands.

The Facilities Manager at the Greenwood facility was not specifically informed that the Loral Control Systems nuclear gauge was to be shipped to the Central Tubing Facility in Columbus, Indiana, and assumed that it was unneeded industrial process equipment.

' The Facilities Manager stated that on March 29,1999, he saw the gauge (with wood pallet) along with other scrap on a flat-bed truck owned by Kroot Salvage. It was -

assumed that the truck with the scrap was driven by a Kroot Salvage employee.

1 When the gauge did not arrive at Arvin's Central Tubing Facility in Columbus, Indiana, on March 31,1999, as planned, the Technical Manager at the Tubing Facility telephoned the Facilities Manager at the Greenwood facility to inquire about why it did -

not arrive as expected.

Arvin industries staff responded to Kroot Salvage on March 31,1999 and April 1,1999, to search for the gauge. According to Arvin staff they wero able to locate some of the l equipment that was on the truck; however, the gauge was not found alung w?h other  ;

specified equipment that was listed on the shipping papers, e.g., two die carts and several barrels of copper / brass. According to Kroot Salvage employees, when the truck arrived at the scrap yard, the gauge and other process equipment that was missing was not on the truck and it was assumed that the equipment could have been shipped to Kelpner Brothers scrap ya'd r in Louisvills, Kentucky.

3

On April 6,1999, Arvin personnel traveled to Louisville, Kentucky, to search Kelpner Brothers scrap yard; the gauge and other missing equipment were not located. Arvin personnel returned that day and again searched the Kroot Salvage yard but again did not locate the missing gauge.

On April 8,1999, Arvin sent a notice to all other Arvin Exhaust facilities in North America requesting that they search their inventory for the missing gauge. Subsequently, all Arvin facilities confirmed that they do not have the missing gauge in their inventory.

Between April 19 through April 22,1999, Arvin personnel contacted the "outside" purchasers ome surplus process equipment at the Greenwood facility and asked them if the nuclear gauge system had been inadvertently placed with their equipment.

Subsequently, each "outside" purchaser confirmed that they do not have the nuclear gauging system.

On April 27,1999, Arvin contacted the Indiana State Police and filed a lost / stolen report with that agency.

On May 11 and 29,1999, the Indiana State Police issued Bulletins 99-10 and 99-12 which advises other local and State police agencies regarding the possible theft and a description of the missing nuclear device (Loral Control Systems, Model 5310).

a. Insoection Scope The inspector interviewed the Arvin industries management and staff that were directly involved with the sale and transfer of the surplus process equipment from the j Greenwood facility and representatives from Kroot Salvage in Columbus, Indiana.

b. Observations and Findinas After significant inquires and searches of the various areas where the nuclear gauge could have been, on April 9,1999, the licensee officially determined that the Loral Control Systems nuclear gauge was either lost or stolen. According to the Facilities Manager at the Greenwood facility, the last time he saw the gauging system was on March 29,1999, while the gauging system was on a truck along with other surplus equipment destined for Kroot Salvage.

10 CFR 31.5(c)(8) requires that the licensee shall transfer or dispose of the device containing byproduct material only by transfer to persons holding a specific license pursuant to Parts 30 and 32. At the time of this inspection, Kroot Salvage did not hold a specific license to receive or possess the Loral Control Systems nuclear gauge containing byproduct material.

10 CFR 71.5(a) requires that a licensee who transports licensed material outside the confines of its plant or other place of use, or who delivers licensed material to a carrier for transport, comply with the applicable requirements of the regulations appropriate to the mode of transport of the Department of Transportation (DOT)in 49 CFR Parts 170 through 189.

49 CFR 172.202(a) and (b) require in part, with exceptions not applicable here, that the l l

shipping description of a hazardous material on the shipping paper include, in the 4

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l I

following sequence: (1) the proper shipping name prescribed for the material in 172.101 l or 172.102, (2) the hazard class, (3) the identification number, and (4) the total quantity l by weight or volume. Pursuant to 49 CFR 172.101, radioactive materialis classified as hazardous material.

l 4 On March 23,1999, the licensee delivered licensed material to a carrier for transport and failed to include on the shipping papers the following: (1) the proper shipping name prescribed for the material in 172.101 or 172.102 (2) the hazard class, (3) the j identification number, and (4) the total quantity or volume of radioactive material, see  !

Attachment A.

c. Conclusions The NRC inspector determined that the root cause of the loss / theft was likely due to several extenuating factors associated with human error. As an example: (1) the Facilities Manager at the Greenwood facility was not informed the nuclear gauge was to '

I be transferred to the Tubing Facility, and (2) the Facilities Manager was not informed that the gauging system contained radioactive material and could not be sold, transferred or disposed in the usual manner. Two apparent violations of NRC requirements were identified.

The licensees failure to transfer the Loral Control System thickness cauae containina 1.0 curie (37 GBa) of americium-241 to an authorized recloient constitutes an aooarent violation on 10 CFR 31.5(c)(8).

The licensee's failure to include certain soecified entries on the shiocina Daoer that accompanied the Loral Control System thickness aauae containina 1.0 curie (37 GBa) of americium-241 constitutes an acoarent violation of 49 CFR 172.202 (aland (b).

Two apparent violations of NRC requirements were identified.

1.2. Notifications and Reports

a. Inspection Scope The inspector interviewed the licensee's management and staff directly involved in the sale and transfer of surplus process equipment at the Greenwood facility.

b. Observations and Findinas interviews with the Arvin Industries staff indicated that on April 9,1999, the licensee officially determined that the Loral Control Systems nuclear gauge was either lost or stolen. The licensee notified the NRC Operations Center at 10:05 a.m. (EDT) on April 12,1999, in accordance with 10 CFR 20.2201(a)(2). At the time of the report to the NRC the licensee did not feel that an exposure to radiation to persons in unrestricted areas would occur because of the engineered safety systems associated with the gauging syste 5

The licensee submitted a 30-day written report dated May 11,1999, in accordance with 10 CFR 20.2201(b). The report included a description of the circumstances under which the loss / theft occurred, probable disposition of the gauge and the licensee's corrective action.

c. Q,onclusions The licensee made all NRC-required notifications and reports with regard to this l loss / theft of licensed material. The content of the notifications and reports included all of the information prescribed by NRC regulations.

2.0 Exit Meeting Summary I The inspector discussed the conclusions described in this report with licensee management and staff during a preliminary exit meeting conducted at the licensee's facility on April 23,1999.

The licensee did not identify any information reviewed during this inspection and selected for inclusion in this inspection report as proprietary in nature. A followup exit meeting was held via telephone on May 26,1999, to discuss the apparent violations addressed in this report.

Attachments: A: Shipping Paper dtd 3/99 PARTIAL LIST OF PERSONS CONTACTED Debra Chelf, Environmental Engineer Dave Dahl, Facilities Manager, Greenwood Facility L. Liston Hinson, Jr., Manager Environmental Division Larry Mackey, Esq., Attomey, Legal Counsel for Arvin Industries David Main, Vice President Art Nicholson, Driver, Kroot Salvage Mark Verbanic, Technical Manager, Central Tubing Facility Ted Wells, Director, Environmental Compliance 6

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