ML20246H105

Staff Exhibit S-1,consisting of Ofc of Investigations Rept Re Matl False Statements/Intentional Violation of Licensing Requirements (Case 4-88-002) & Supporting Info

ML20246H105
Person / Time
Issue date:	06/13/1989
From:	Hayes B NRC OFFICE OF INVESTIGATIONS (OI)
To:	Martin R NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
References
CON-#389-9107, REF-QA-99990004-890613 S-001, S-1, NUDOCS 8909010090
Download: ML20246H105 (178)

Text

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G C Applicant RECDVED Y 3 IS i . Inwrven01 REJECTED C. r 89 AUG 28 P7 :0 k b,% [ pan 'f-/4 yS)T ' August 23, 1988 e 0*h3r Witn is Innd / Sh O i 'YCf Reporter - A nu f/ 0 i ie MEMORANDUMFORi debert D. Martin, Regional Administrate $ b Region IV FROM: Ben B. Hayes, Director Office of Investigations

SUBJECT:

WRANGLER LABORATORIES: MATERIAL FALSE STATEMENTS / INTENTIONAL VIOLATION OF LICENSING REQUIREMENTS (CASENO.'4-88-002) Enclosed, for whatever action you deem appropriate,'is the Office of Investigations (OI) Report of Investigation concerning the above matter. The results of this investigation confirmed that John LARSEN knowingly 6xceeded the possessions weight limitations of source material under a general license during calendar year 1987. Furthermore, this investigation .l established that John LARSEN intentionally withheld high bioassay results ) -ordered by an NRC Region IV confirmation of action letter which constitutes a false statement by omision. 4 A copy of this report has been provided to the Department of Justice for - prosecutorial review. Neither this memorandum nor report may be released outside the NRC without the permission of the Director. 01. Internal NRC access and dissemination should be on a right and need-to-know basis. .j

Enclosure:

As stated cc w/ encl: i V. Stello, EDO (3) D. Driskill, 01:RIV ~ 8909010090 090613 REG 4 GA999 EXIWRANG 99990004 PDR Distribution c/f (4-88-0D2) r/f(RED 1) J. Weddle. 01:HQ D. Murphy, 01:HQ B. Gruszynski 01:RIV ] l ot:"o k 01:H0 [ N I:so 01:RIV OI:RIV O HBGriffin/bg DDriski Ty DMurphy RFor una BHay s 88/ //h 88/ / 88/@/g 88/05/RS 88/05/ r )

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1 1 j tb August 23, 1986 H. Robert Showers, Esquire j DC: QY Assistant Attorney General j C - m.41 Division { U. S. Department of Justice 10th & Constitution Avenue, NW Washington, DC 20530 I

Dear Mr. Showers:

Enclosed is a Report of Investigation concerning possible failure to comply with NRC confirmation of action letters and intentional violation of the ) source material weight limitations of an NRC General License by John LARSEN, owner of Wra'igler Laboratories, Frovo, Utah. The investigation disclosed that J. LARSEN failed to comply with the provision of NRC confirination of action letters by concealing the results of high bioassay reports pertaining to his employees. This concealment by J. LARSEN, of the information ordered under the NRC confirmation of action letters, appears to constitute a violition of 18 USC 1001. In addition, the investi-gations disclosed J. LARSEN was required by the NRC regulation 10 CFR 40.3 to have a General License to owr, receive, possess, use, transfer or deliver byproduct materia:, 10 CFR 40.3 is issued pursuant to Section 161(b), of the Atomic Energy Act (AEA) of 1954, as amended (42 JSC 2201). The investigation also disclosed that J. LARSEN intentionally violated the souice material weight limitations specified under section 10 CFR 40.22(a) of the NRC General License provisions. Section 223(a) of the AEA (42 USC 2273), makes a willful violation of a regulation issued under Section 161(b) (i) or (o) cf the AEA a Criminal Act. It appears therefore, that J. LARSEN's intentional violations of his NRC General License requirements may constitute a criminal act. It should be noted that an order was issued on August 15, 1988, to reycke Wrangler Laboratories General License. In view of the evidence of possible Federal criminal violations, this report and exhibits are being forwarded to you for whatever action you deem appropriate. If you have any questions regarding this matter, please feel free to contact Mr. Donald D. Driskill, D: rector, Office of Investigations (01) Field Office, Region IV, at (817)B60-8110, Sincerely, Ben B. Hayes, Director Office of Investigations

Enclosure:

As stated a

p> { ( ? 'H. Roberts Showers. Esquire ' .e, cc.w/o enc 1: Chairman Zech Commissioner Roberts Commissioner Carr Commissioner Rogers-W. Parler, 0GC : V. Stello, E00 (3) J.-Taylor.-DEDO.(Acting) D. Driskill 01:RIV' 'R. Martin, RIV Distribution s/f(4-88-002) r/f (RED 1) c/f-B. Barber,- 01:HQ L. Gallop, 01:HQ D. Murphy, OI:HQ B. Gruszynski, 01:RIV

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Copes t << R-dy 'Mr. Ben B. Hayes Director, Office of Investigations t United States Nuclear Regulatory Commission Q .h Washington, D.C. 20554 l/* y 4 Re: Case referral from the Nuclear y p f0b Regulatory Commission--Wrangler Laboratories (Case No. 4-88-002)

Dear Mr. Hayes:

On August 22, 1988, you referred a Report of Investigation from NRC's Office of Investigation to the Department of Justice concerning the above-captioned case. This report discussed allegations that an NRC licensee violated the source material weight limitations specified under 10 C.F.R. 4 0.22 (a) and that the licensee raade a false statement by virtue of his failure to submit to the NRC certain bioassay test results as ordered by NRC confirmation of action letters. We have reviewed the allegations contained in this report .and we have examined the supporting evidentiary materials in this case. On the basis of this review, we conclude that further action by the Department of Justice is not warranted. In arriving at our decision to decline prosecution of this matter, we, "* prosecutors, made legal and factual judgments concerning whscher a violation of a federal criminal statute could be established and whether the case has prosecutive merit. Our decision in this case should not be interpreted as suggesting that referral of this matter to the Department of Justice was inappropriate. The referral was entirely appropriate, for it gave us the opportunity to review the situation fully and to exercise proper prosecutorial discretion in this important regulatory area. s

m e We trustithat this information will be of assistance to you. Sincerely, Edward.S.G. Dennis, Jr. Assistant Attorney General: Criminal Division By: Lawrence Lippe, Chief General Litigation and Legal Advice Section k I' i i .L.- .-.x.a

Title:

WRANGLER LABORATORIES: MATERIAL FALSE STATEMENTS / INTENTIONAL VIOLATION OF LICENSING REQUIREMENTS Licensee: Case Number: 4-88-002 Wrangler Laboratories Report Date: August 18, 1988 3853 North Sherwood Road Provo, Utah 84604 Contrcl Office: 01:RIV Docket No.: 99990004/87-04 Status: CLOSED ' Reported By: Reviewed By:

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H. Brooks Griffin, Ip5testigator Donald D. Driskill, Director Office of Investigations Office of Investigations Field Office, Region IV Field Office, Region IV Participating Personnel: Appro d Blair Spitzberg l Radiation Specialist NRC, Region IV Bed B. ~ndyes,Ayt ctor j Office of InMt gati ns 1 WARNING j The attached document / report has not been reviewed pursuant to 10 CFR Subsection 2.790(a) exemptions nor has any exemot material been deletec. Do not disseminate or discuss its contents outside NRC. Treat as "0FFICIAL UE ONLY." . 9 Ct e' w__-__-_____-____________

. SYNOPSIS In October:1987, the WyoHng Bureau of Radiation Control referred an allegation to the NRC re ding the activities of Wrangler Laboratories

(Wrangler) in Evanston 1 On November 4, 1987, the NRC inspected Wrangler and determined that Wrangler's business involved chemically processing deplete ^ uranium (DU) into a catalyst, uranyl acetyl. acetate (UAA), used to-harder plastics. During the inspection the NRC discovered that the Wrangler owner had apparently exceeded annual. possession limits of source material invoked by an NRC general license. Further review by;the NRC disclosed that the Wrangler owner had a Utah specific license under suspension for regulatory violations, and in 1982 had an NRC general license temporarily suspended in Utah for regulatory violations. The Wrangler owner subsequently failed to comply with NRC confirmation of action letters which had ordered bicassay.

results for Wrangler employees, and his NRC general license in Wyoming was suspended. The NRC Regional Administrator subsequently requested an investigation of Wrangler by the Office of Investigations (01). As part of this investigation, Utah radiation control officials, present and former employees, representatives of Wrangler's DU supplier, and representa- ~ tives of Wrangler's sole customer for UAA were interviewed. The scope of this investigation was limited by the small number of individuals who had first-hand knowledge of Wrangler's activities. This investigation established that the Wrangler owner had knowingly excee'ded the source. material weight limitations _ cf an NRC general license in Wyoming during 1987. This investigation confimed that the Wrangler owner failed to comply with the NRC's confirmation of action letters relative to urine bioassay sampling, aniestablished that the Wrangler owner ma6 a false statement by omission in his. responses to NRC confirmation of.. ; ion letters by intentionally withholding infomation reflecting high bionssa results. The Wrangler owner's stated basis for withholding the.bicassay results was that he unilaterally did not accept the test teruits. The investigation . revealed' that.this licensee has a long history o' non-compliance with regulatory requirements, a disregard for his employee's safety, and stated his intent to again relocate to another state to tvoid regulation. Case No. 4-.88-002 1 1

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- The following portions-of.this Report of Investigation (Case No. 4-88-002)~ veill not.be included in :the material placed in the PDR. They. consist of-pages.. !?.. 2 through 26. t 4 R 4 [, Case No. 4-68-G02 3 ,'l

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\\ j TABLE OF CONTENTS i i Pace 1 j SYN 0PSIS............................................................. i 3 ACCcuuTABILITv..................................... APPLICABLE REGULATIONS.,............................................. 7 DETAILS OF INVESTIGATION............................................. 9 9 Purpose of Investigation........................................ 9 Background...................................................... Interview With Craig JONES. Health Physicist, Utah Bureau of Radiation Contro1.............................................. 10 I rvi w (CONFIDENTIALITY GRANTED), jllllq[ 10 Interview With Gary ELLINGFORD, Partner in J. G. Brothers....... 11 Interview With Frank VUMBACCO, Manager, Health and Radiation Safety; Paul F. CLEARY, Sales Manager; and Anthony CARPENITO, Supervisor, Data Management and Health Physics, Nuclear Metals. 12 Inc., Concord, MA.............................................. Interview With Phillip SNYL2R and Thomas OUINN, Hysol Electronic Chemical's Division............................................ 12 Interview With Kevin James NOACK, Employee, Wrangler Laboratories................................................... 13 Interview With Michael LARSEN, J. LARSEN's Son.................. 15 Interview With Sally LARSEN, Wife of J. LARSEN.................. 15 Interview With John LARSEN, Owner of Wrangler Laboratories, 16

Evanston, WY...................................................

21 W i 11 f ul ne s s / I nte n t.............................................. 22 Agent's Analysis................................................ 22 Agent's Conclusion.............................................. 25 LIST OF EXHIBITS..................................................... Case No. 4-88-002 5 .I

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3. '{ s M "5 APPLICABLE REGULATIONS 10 CFR 40.3 License Requirements 10 CFR 40.22: Small Quantities of Source Material. . Atomic Energy Act'of 1954,-Section 161(b),;(42 USC 2201): General: Provisions. AEA,Section.223.b.(42.USC2273): Violation of Sections Generally. n-t 1 Case No. 4-88-002 7 -m.a..______..

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DETAILS OF INVESTIGATION l Purpcse of Investigation The purpose of this investigation was to determine whether John LARSEN, the owner of Wrangler Labs, an NRC general licensee operating in Wyoming, had knowingly and intentionally violated provisions of an NRC general license. This investigation was also to determine whether J. LARSEN had made false statements to the NRC in responses to NRC confirmation of action letters.

Background

On August 23, 1982, Orion Chemical Company, a name J. LARSEN used working under an NRC general license in Provo, Utah, was inspected by the NRC. J. LARSEN was cM mically processing depleted uranium (DU) into uranyl acetyl acetate (UAA). As a result of this inspection, J. LARSEN's general license was suspended on September 3,1982 (Exhibit 1). On October 25, 1982, the NRC rescinded the order suspending J. LARSEN's license, allowing J. LARSEN to resume production of UAA (Exhibit 2). On December 15, 1982, J. LARSEN was issued a $500 civil penalty for violations discovered in the August 23, 1982 NRC inspection (Exhibit 3), to which J. LARSEN responded on March 11, 1983 (Exhibit 4). On March 29, 1983, the NRC's Office of Inspection and Audit referred an investigation to the U.S. Department of Justice (D0J) for exceeding possession limits of DU under a general license (Exhibit 5). 00J declined prosecution. In December 1983, J. LARSEN was issued an NRC specific license as Larsen Laboratories (Larsen Labs) of Provo, UT. On May 13, 1985, the State of Utah reissued a specific license to Larsen Labs, when Utah became an agreement state. On April 15, 1986, the NRC received an allegation of improper activ-ities by Larsen Labs, and the information was referred to the State of Utah. A subsequent inspection by Utah on November 5, 1986, resulted in a suspension of Larsen Lab's specific license and the imposition of a S13,000 fine (Cxhibits 6, 7, 8, 9, & 10). J. LARSEN signed a settlement agreement with Utah (Exhibit 11), but since corrective action is incomplete Larsen Lab's Utah specific license is still in suspension. In early 1987, J. LARSEN rented a building in Evanston, WY, and began pro-cessing DU under an NRC general license. On October 28, 1987, the State of received regarding LARSEN's Wyoming informed the NRC of an allegation they(Wrangler) in Evanston, WY activities operating as Wrangler Laboratories (Exhibit 12). On November 4, 1987, the NRC inspected Wrangler and discovered that J. LARSEN appeared to have exceeded his uranium possession limits under a general license (Exhibit 13). J. LARSEN was issued a confirmation of action letter (CAL) and subseouent CAL's on November 12, 1987 (Exhibit 14), l December 8, 1987 (Exhibit 15), and December 31, 1987 (Exhibit 16). Following l a December 2, 1987, enforcement conference in Salt Lake City, Utah, the NRC temporarily suspended J. LARSEN's general license in Wyoming (Exhibit 17). Subsequent to this suspension, J. LARSEN made application to the NRC for a specific license in Evanston, WY, and this application is pending. On December 14, 1987, the NRC Region IV Regional Administrator reouested an investigation of Wrangler Labs by the Office of Investigations (Exhibit IF'. Case No. 4-88-002 9 ^:

Interview with Craig JONES, Health Physicist. Utah Bureau of Radiation Control I On February 29, 1988, JONES was interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg in Salt Lake City, Utah (Exhibit 19). When questioned about Utah's suspension of J. LARSEN's specific ~ license JONES said that initially J. LARSEN was not responsive to inquiries by the State of I Utah asking J. LARSEN to identify his business locations. JONES said that he was eventually able to locate J. LARSEN who had continually failed to respond to mail sent to his home. JONES said that J. LARSEN used various business names, such as Orion Chtmical and Larsen Laboratories, but these were names not registered with the State. JONES said J. LARSEN never obtained a business license in the Provo area and never registered hi business names as corpora-tions in Utah. JONES said he had checked with the State Department of Business Regulations which perfomed the search for the various names J. LARSEN was l using, but said no registrations were found. JONES said the State of Utah obtained copies from J. LARSEN of his 1986 records of receipt of DU from Nuclear Metals Inc., Concord, MA, and also his records of UAA shipments to Hysol, Olean, NY. JONES said their investigation led to several fomer J. LARSEN employees who gave them testimony indicating J. LARSEh had little regard for the regulatory requirements related to the production of UAA and the handling of hazardous chemicals. JONES said that a confidential source had identified a location in the mountains of Utah where J. LARSEN had dumoed chemical waste. JONES said two former employees of J. LARSEM said that J. LARSEN did not involve himself closely with the process-ing, and said J. LARSEN relied upon his temporary employees to do the majority of the work. JONES said their investigation also revealed that J. LARSEN had conducted processing activities at four separate locations in Utah. JONES said that on November 5,1986, Utah suspenced J. LARSEN's activities for a variety of violations cf his specific license. JONES said their investi-gation concluded that at the time of his suspension, J. LARSEN had in excess of one hundred pounds of DU in his inventory. JONES said J. LARSEN also had seventeen drums of radioactive waste which were eventually transferred to the University of Utah for shipment to the State of Washington.. JONES said that Utah learned that J. LARSEN had filed for and received a permit with the State of Washington to accept and store waste at their waste disposal facility. JONES said their investigation showed that during 1986, J. LARSEN obtained his CU from Nuclear Metals in Concord, MA, and that his sole custcmer was Hysol in Olean, NY. JONES indicated that J. LARSEN met some of the provisions of his suspension, but others remainea open items and that his Utah license remainec in suspension. On April 1, 1988, was telephonically interviewed by NRC Investigator Griffin (Exhibit 2 1 Case No. J-88-002 10 j p]

i 4 he became concerned about the hazards of the process M said that J. LARSEN's involvement in the process was limited to testing.th finished UAA. Maid "he makes the money and sits at home." Esaid there had been one occasion when J. LARSEN asked him to dump waste, but said he had refused to do s said he was told b ano er former employee by the name of that ad dumped ) radioactive waste in Utah. l l l INVESTIGATOR'S NOTE: JONES confirmed that Utah had already investigated this allegation, but was unable to locate the site of the dumping. M that J. LARSEN had told him on one occasion that he had also dumped waste next to the lab located at 800 North and 1500 West Provo, UT, but i J. LARSEN went on to say the State of Utah made him clean up the waste. { \\ asked for a dosimeter, but said J. N diri not provide him with one. said the most alaming j incident LARSEN with powdered UAA smeared on his t face during processing. J. LARSEN boiling benzene in f f an open flame, an sai new is to be enormously dangerous, said J. SEN showed no apparent concern for his own health r that of his emplo ees. o sa ty equipment J. LARSEN rovided was 3M paper masks and latex gloves. s not asked to provic nv urine i samp es gg J. LA ack of concern for is safety and J. LARSEN's unwi T ngness to buy safety equipment. Interview with Gary ELLINGFORD partner in J. G. Brothers, Evanston, WY On March 2,1988, ELLINGFORD was interviewed by NRC Investigator Griffin and NRC Radiation Specialist Spitzberg in Salt Lake City, UT (Exhibit 21). l ELLINGFORD said that in January 1987. J. LARSEN and three other men met him in .Evanston, WY and inquired about a quonset hut that his partnership had for rent. ELLINGFORD said that soon after J. LARSEN signed the rental agreement, he became suspicious that they might be setting up a drug lab. ELLINGFORD said he questioned them about their business, and they explaineo that they were making a material used to harden plastic for Honeywell in cefense contracts. ELLINGFORD said that because the quonset hut had no heat ano no water, he did not think it was an appropriate place for a laboratory facility. ELLINGFORD said he asked the police to check on J. LARSEN, and said they later informed that J. LARSEN had no record. ELLINGFORD said that in the summer there were strong fumes coming from the quonset hut, and he requested a meeting with J. LARSEN. ELLIMGFORD said that J. LARSEN finally met with him several months later, and J. LARSEN showed him the DU metal slugs along with Geiger counters and other equipment. ELLINGFORD ~ said he eventually contacted Wyoming Radiation Control about J. LARSEN, and they referred the matter to the NRC. ELLINGFORD said the radiation control officer told him that J. LARSEN was " state hopping" to avoid reculation. Case No. 4-88-002 11

f ELLINGFORD also said that it had come to his attention that J. LARSEN used'a number of different names in his business enterprises. ELLINGFORD said that following an NRC inspection, he had been informed that the quonset hut was contaminated. ELLINGFORD said that in December 1987, J. LARSEN asked him for a year's lease, and he said he told J. LARSEN "no." ELLINGFORD said that J. LARSEN currently has property in the quonset hut, and said he is now waiting for decchtaminatien of the building. ELLINGFORD said he had visited the quonset hut while J. LARSEN's employee, Kevin NOACK, was processing material. ELLINGFORD said he found the hut to be dirty, filthy, with evidence of spills, and trash laying around. Interview with Frank VUMBACCO, Manager, Health and Radiation Safety; Paul F. CLEARY, Sales Manaaer; and Anthony CARPENITO, Supervisor, Data Management and Health Physics, Nuclear Metals, Inc., Concord, MA On March 17, 1988, VUMBACCO, CLEARY, and CARPENITO were interviewed by NRC Investigator and NRC Radiation Specialist Spitzberg in Concord, MA (Exhibit 22). They said J. LARSEN placed telephone orders to Nuclear Metals for DU instead of sending purchase orders. They said.'thiy were dware that J. LARSEN was chemically altering the DU to make a catalyst. They said that based on recent publications in the Federal Register, they were aware that J. LARSEN's license had been suspended by the State of Utah and subsequently by the NRC. CLEARY said that on October 19, 1987, he informed J. LARSEN duF ng a telephone call i that he had received his tenth 15 pound shipment for the year which consti-tuted his allotted one hundred and fifty pounds per year under his general did not believe,said they had reviewed their records and, based on the review, license. They J. LARSEN had received or attempted to receive any aoditional DU using any other names, representatives, or business locations. VUMBACCC, CLEARY, and CARPENITO said that on February 5,1988, J. LARSEN called and placeo a one hundred pc W order in anticipation of being issued an NRC specific license. VbMBACCO expressed concern at the adverse publicity generated for Nuclear Metals based on the information contained in the Federal Register. VUMBACCO indicated that the amount of the money represented by the shipments to J. LARSEN were insignificant in relation to the adverse publicity Nuclear Metals received from having been named in the Federal Register as havirg ] supplied J. LARSEN. 1 i Interview with Phillip SNYDER and Thomas OUINN, Hysol Electronic Chemical's Division (Hysol) On March 14, 1988, SNYDER, the Materials Manager and Radiation Safety Officer (R50), and CUINN, the Purchasing Panager for Hysol were interviewed by NRC Ir.vestigator Griffin ar.d NRC Radiation Specialist Spitzberg in Olean, NY (Exhibit 23). SNYDER and QUINN said that in April 1987, they received a New Ynrk specific license to handle amounts of UAA greater than 15 pounds at one time. They i aomitted that prior to receiving the specific license, they had been ignorart of the weight limitations, and had regularly exceeded the limits under a New York general literse. !NYDER and QUINN said it took a long time for the j Case No. 4-88-002 12 l

specific license to be issued, but said that in January 1987, Andrew AWAI, a State Department of Labor representative, verbally authorized Hysol to possess amounts of UAA greater than 15 pounds. j SNYDER and QUINN said they first deslt with J. LARSEN as a supplier of UAA when he was located in California. They said J. LARSEN later informed tnem that he had relocated to Utah. When questioned about their UAA suppliers. SNYDER and QUINN said they also received UAA from. ROC /RIC, a company in Orange, CA. ShYDER and QUINN said they did not believe ROC /RIC was licensed in California to hanole DU. SNYDER and QUINN said they were also soliciting information from a Milwaukee company by the name of Cerac as a potential supplier of UAA. SNYDER and QUINN said that when J. LARSEN informed them that he had moved to Wyoming, they were not sure whether he was working under a specific or general license. They said they were also not sure whether J. LARSEN was processing the material in Wyoming or Utah. They said they were aware of J. LARSEN's difficulties with the Utah radiation control authority, because Virgil LORENSENI, a fomer Hysol employee, had made to visit J. LARSEN's facility in Utah. SNYDER and QUINN said they did not know who supplied J. LARSEN with DU. They said Honeywell had approved J. LARSEN as a supplier due to the quality of his UAA. They said they were not aware of how J. LARSEN disposed of his waste, nor were they aware of any high bioassays for J. LARSEN's employees. When questioned about one of J. LARSEN's UAA shipments to the Hysol at Seabrook, they explained that in August 1986 after they re311 zed they were exceeding the 15 pound limit under a general license, so they a ;ked J. LARSEN to ship to Seabrook as a separate location. Interview with Kevin James NOACK. Emplovee Wranolar Labs On March 2,1988 K. NOACK was interviewed by NRC Investigator Griffin and NRC Radiation Specialist Spitzberg in Provo UT (Exhibit 24). K. NOACK said he had worked for J. LARSEN for about three years processing DU into UAA. K. NOACK said he began his association with J. LARSEN by responeteg to a rote J. LARSEN placed on a bulletin Doard at Brigham Young University. ~K. NOACK said for about three months he worked for J. LARSEh doing odd jobs around his home. NOACK said that eventually J. LARSEN's father, Paul LARSEN, showed him some of the processing steps for converting the DU into UAA. K. NOACK said for about the first six months he worked processing DU, he worked with P. LARSEN placing the DU in acid, introducing benzene, and drying the material. K. NOACK said he was aware the State of Utah had suspended J. LARSEN's license in Utah causing J. LARSEN to move his activities to Evanston, WY. K. NOACK said he performed the processing in Wyoming and returned the finished UAA to Provo. K. NOACK said J. LARSEN tested the UAA and packaged the UAA shipments to Pysol. K. NOACK said J. LARSEN had never given him much instruction about the hazards of processing DU. K. NOACK said he had taken it upon himself to do some reading and questioning professors at BYU about the dangers of handling the CU anc al : Case No. 4-88-002 13

the hazardous chemicals used in the process. K. NOACK said that he was careful to wear a mask, gloves, and coat when processing, and said he tried not to breathe the dust when he was grinding the UAA crystals. K. NOACK said there had been a six or seven pound spill of UAA at Evanston, and ) that M. LARSEN had been present at the time. He said they used rags to mop up l as much of the spilled UAA as they could. K. NOACK said he assumed that the subsequent high bicassays were the result of this spill. K. NOACK said he had, on various occasions, given urine samples to J. LARSEN, but he was unable to say when, how often, or how many samples he provided. K. NOACK said that over the years of processing, J. LARSEN accumulated about 100 buckets of liouid waste which was stored at J. LARSEN's Lindon, UT building. K. NOACK said that on two occasions he had boiled down the waste at the Lindon building. He said UAA crystals had formed from the boiled down waste, and he added these crystals to the material being processed at the Evanston facility. 3 He said that on these two occasions, the amount of UAA crystals he obtained from the waste would have been something around 15 pounds on each occasion. 1 K. NOACK said that when he was not proce; sing the DU, he still did odd jobs for J. LARSEN in Provo and woodwork at his building in Lindon. K. NOACK said that when J. LARSEN was forced to relocate to Wyoming, he had transported the equipment to Evanston. INVESTIGATOET *~ D A majority of the K. NOACK interview was dedicated to I trying to take +. MACK's testimony regarding the set-up and operation of the facility in t.vanston. During the interview K. NOACK repeatedly provided formless responses, skipping back and forth in time. Repeated attempts were made to pin down times and the sequence of events related to K. NOACK's knowledge of J. LARSEN's involvement and K. NOACK's work in Evanston. Although K. NOACK appeared cooperative, his responses to questions were rambling, disjointed, and unusable. Various interviewees during this investigation described K. NOACK as being "dosey", " slow", " thick", "on his own schedule", and it was observed that these characterizations were not meant unkindly. <e was able to master the chemical processes for the production o , but seems limited in evaluating his own potential risk in working with toxic chemicals and radioactive material. Additionally, it was noted that K. NOACK's eyes were rec and appeared swollen. This investigation did not establish whether K. NOACK's condition was the result of his work for J. LARSEN. However, it adversely is this investigator's concern that K. NOACK's health may have been affected as a result of the conditions in which he has worked. K. NOACK said that each time he ccmpleted the process, he transported the UAA to J. LARSEN in Provo and took the waste to the Lindon facility. K. NOACK saio ha did almost all of the processing cf the DU. K. NGACK described J. LARSEN as " lazy", and said J. LARSEN did not like to involve himst.'.f in the processing. l 1 Case No. a-88-002 14 I i

q I j Interview with Michael LARSEN, J. LARSEN's' Son ) On March 15, 1988, M. LARSEN was interviewed on the campus'of Cornell in Ithaca, NY by NRC Investigator Griffin and Radiation Specialist University (Exhibit 25). Spitzberg INVESTIGATOR'S NOTE: M. LARSEN used prepared notes during this interview, and readily admitted that the information in the notes had been telephonically provided to him by.his father following his f ather's interview with the NRC. . LARSEN said he first worked in his father's business sometime in 1985 helping to assay UAA for metal content. M. LARSEN said he first became involved in the processing in late 1986 when he worked dissolving the metal in acid. He said K. NOACK handled the more dangerous parts of the process. M. LARSEN said that during one period he worked at the processing for about a five and one-half months, and said he believeo he was competent to perform the complete process. M. LARSEN said since that time he had only worked occasionally helping with the processing. When M. LARSEN was questioned about his personal knowledge of K. NOACK, he said that recently, March 1988, K. NOACK was diagnosed as having epilepsy. M. LARSEN said that K. NOACK had always had difficulty in being on time, ketiping his schedules, or showing up at all. M. LARSEN said that he and K. NOACK had net gotten along that well. When questioned about K. NOACK's exposure to benzene fumes, M. LARSEN said it had been necessary to use fans to try to direct the fumes away from K. NOACK. M. LARSEN said he had not been involved in setting up the equipment at the Evanston facility and said he did not know where his father stored the DU metal slugs during that time period. M. LARSEN said he was aware K. NOACK hac transferred the waste material that was crystallizing into UAA from the Lindon building to the Danston facility to finish prccessing the crystals, M. LARSEN opined that the reason some of the UAA shipments his father made to Hysol exceeded the 15 pound limit was probably due to the fact that crystals from the whste had been added. M. LARSEN said it would be possible to complete processing from metal to UAA in enE week, but said if done too quickly there were sometimes prcblems with purity. M. LARSEN said it usually took one and a half to twc weeks to complete the process. M. LARSEN was questioned about additional urine samples taken as a result of high bioassay readings he had shown following a spill of UAA at the Evanston facility. He said the urine specimens he had given were taken at the Lincon building, and said he believea the high readings were the result of contam-inated specimen bottles. Interview with Sally LARSEN, Wife of John LARSEN On Parch 2,1988, S. LARSEN was interviewed by NRC Investigator Griffin and NRC Radiation Specialist Spitzberg in Provo, Utah (Exhibit 26). Case No. 4-88-002 15 bo _ - -- _ _

L t l L S. LARSEN said that her husband kept her informed of his licensing activities related to the production of UAA, and said she was generally aware of his L day-to-day business activities. S. LARSEN said that her husband had first become involved in the processing of DU in Utah in the late seventies. S. LARSEN said that after the State of Utah suspended her husband's specific license in Utah, she helped her husband relocate to the quonset hut in Evanston, WY. S. LARSEN said she was aware that the waste generated from the processing in Evanston was transferred back to their building in Lindon, UT and stored in drums in a Butler-type building. When questioned about J. LARSEN's method of operation, S. LARSEN concurred that her husband attempted to keep the overhead of his business low to maxi-mize profits. S. LARSEN explained tM t in the past several years her husband had-learned a great deal more about the potential dangers of the process. She said her husband has been upgrading his equipment and hes become more con-scious for the safety of K. NCACK. S. LARSEN explained that her husband had been reluctant to make any substantial investment in laboratory facilities or safety equipment, because it was not known how much longer Hysol would issue them contracts for UAA. When questioned about her knowledge of K. NOACK's work in processing the DU, S. LARSEN described K. NOACK as kind of "dosey" and the type of person who hao difficulty maintaining a schedule. S. LARSEN indicated that K. NOACK did inost of the work at the Evansten facility, and that he'r husband allowed K. h0ACK to set bis own schedule. S. LARSEN said she was aware of her husband's past difficulties with the NRC and with the State of Utah. She said it was not her husband's intent to avoid regulation, and that he was prepared to invest in the equipment and take the steps to bring himself into compliance with the regulations. S. LARSEN cescribed her husband as preoccupied with other hobbies and offered to involve hcrself in his licensed activities if it would give the NRC greater faith that her husbanc wouio ccmply with the regulatory requirements. S. LARSEN said she was aware of the fact that bicassay information recuested by the NRC hac been damaged in shipment. S. LARSEN said she was not aware of whether her husband had continued taking urine samples after placing this shipment in the mail. INVESTIGATOR'S NOTE: S. LARSEN's knowledge of her husband's attempts to comply with the CALs was general in nature and secondhand information provided to her by her husband. Interview with John LARSEN. Owner of Wranaler Laboratories. Evanston, WY J. LARSEN was interviewed by NRC Investigator Griffin and NRC Radiation Specialist Spitzberg on March 3, 1988, in Provo, UT (Exhibit 27). J. LARSEN said he operated a facility in Evanston, WY, processing DU into UAA under an !!RC general license. J. LARSEN said he bad been in the business cf processing DU for over ten years and had started his business in Califcrnia. J. LARSEN said that in 1982, he had worked under a general licerse in Utah using the name Oricn Chemical Company of Provo UT. J. LARSEN saic that in 1982, the NRC temporarily suspended his general license, and he was evenn ily Case No. 4-88-00: 16

y. + issued a civil penalty. J. LARSEN said that also in 1982, he applied for and received an NRC specific license in Utah but the regulatory oversight was transferred to the State of Utah in 1985. J. LARSEN said that in November 1986, the State of Utah suspended his specific license pending + corrective action. i J. LARSEN said that when Utah suspended his specific license, he had about 60 l l-pounds of DU metal slugs and about 10 years of accumulated waste in his possession.. When infomed by Investigator Griffin.that the State of Utah had computed his DU metal slug inventory to be in excess of 100 pounds, J.-LARSEN denied that his-inventory had been that large. J. LARSEN said that after his Utah license was suspended, he transported in-process material to a spot in i the Nevada desert and completed the processing to avoid violating the Utah suspension (Exhibit 28). J. LARSEN said on the same day, December 9,1986, he shipped 14.9 pounds of UAA to Hysol. J. LARSEN said that after his Utah license was suspended, he telephonically contacted Bruce CARRICO and Mike LAMASTRA at NRC headquarters and asked for an interpretation of the weight limitations under an NRC general license. J. LARSEN said he was informed that the 15 pounds at one time or 150 pouncs per calendar year limitations were per location. J. LARSEN said he believec I that because he had waste material in Utah and DU in Wyoming, it did not l e constitute a violation of the provisions of the general license. J. LARSEN said that in late January or early February 1987, he rented a building in Evanston, WY and began processing DU. J. LARSEN said he chose to operate in Evanston, WY, because it was only 100 miles away and it was not in j the State of Utah. J. LARSEN said it was his practice to transport the processed UAA from Evanston to Provo, and then ship to Hysol from Provo. J. LARSEN said the Hysol orders for UAA were usually for 30 or 50 pound lotc. J. LAR5EN said it took about two weeks for K. NOACK and him to complete procesting 28.6 pounds of UAA (47% metal weighing 13.44 pounds) and that on February 2. 1987, he shipped the UAA to Hysol. J. LARSEN said that a week i later, on February 9,1987, he shipped 30.22 pounds of UAA (46.5% metal l weighing 14.05 pounds) to Hysol, and explained that it had only taken a week because he still had in-process material from the work he perfomed under his j Utah license. J. LARSEN said that as each lot was completed, the waste was transported from Evanston back to a building he cwned in Lindon, UT. J. LARSEN said that'as the waste dried naturally UAA crystals fomed, and said he sometimes acced these l crystals to his shipments to Hysol. J. LARSEN said that his next two UAA shipments to Hysol were 25.24 pounds (47.8% metal weighing 12.06 pounds) on February 17, 1987, and 34.42 pounds (46.55 metal weighing 16 pounds) on March 3, 1987. ) INVESTIGATOR'S NOTE: J. LARSEN contends he finished processing 7.03 pounds of source material in the desert of Nevada in December 1986. 1 J. LARSEN then moved to Wyoming and began crocessing. J. LARSEN said that in addition to the 1987 UAA shipments to hysol previcusly mentioned, he made the following shipments: Case No. 4-88-002 U

Date Shipped Packages Pounds UAA shipped % DU Metal March 24 1 15 7 48.5 March 29 1 14.86-47.5 I April 7 1 14.05 46.6 April 18 1 17.19 46.1 April 30 1 19.18 45.9 June 1-2 35.9 46.5 June 13 1 16.66 46.8 June 27 2 23.66 46.5 l July 12 2 26.9 47.2 August 6 1 17.45 46.4 August.7 1 18.61 46.5 September 3 2 28.74 47.5 September 30 2 21.8 46.5 October 19 2 27.33 46.8 December 20 2 34.9 46.8 INVESTIGATOR'S NOTE: J. LARSEN's total 1967 UAA shipments to Hysol, all processed in Wyoming, contained a total of 211.34 pounds of source material. Technically, J. Larsen exceeded the possession limit with his August 7, 1987, shipment. When the NRC inspected J. LARSEN on November 4,1987, he provided the inspectors with records of shipments to Hysol beginning with the March 24, 1987, shipment. The dates of shipment of UAA to Hysol along with the amounts of source material containeo in each shipment are as follows: Date of Shipment to Hysol Source Material (Pounds) February 2, 1987 13.44 February 9 14.05 February 17 12.06 March 3 16.0 March 24 7.61 March'29 7.06 April 7 6.55 April 18 7.92 April 30 8.8 June 1 16.69 June 13 7.8 June 27 11.0 July 12 12.7 August 6 8.1 August 7 ' 8.65 Ser.tember 3 13.65 September 30 10.14 October 19 12.79 December 20 16.33 Total 211.34 Case No. 4-68-002 18 --_---____________-_-____.____.______,_.__m__.-._

[ w 1 o ~J. LARSEN said he realized that' for. some of.these shipments, the assayed I source material exceeded the 15 pound limitation, and said these were probably instances when he had added waste crystals from his Linden. facility. 9 J. LARSEN said he was aware that Hysol had obtained a New York specific i license dated April 13,.1987, to. possess amounts of UAA greater than 30 . pounds. J. LARSEN said-that Virgil LORENSINI of Hysol informed him that New York authorities had given Hysol verbal pemission to receive amounts greater. 1 than 30 pounds beginning in January 1987. J. LARSEN said that during 1987, the only employees who worked for him were-M. LARSEN, K. NOACK, Mike NOACK, and Bruce NOACK. J. LARSEN said that 8. and M.' NOACK were not involved in the processing and only perfomed cleaning at the Evanston facility. 'J. LARSEN said that on November 10, 1987, he received a CAL from the NRC instructing him to cease receipt of source material. J. LARSEN said the NRC allowed him to finish his processing between November 10 through November 13, 1987, and on December 8,1987, issued him another CAL which allowec him to finish processing of the remaining material. J. LARSEN said he had not processed DU during 1988, and said he currently had an application for an NRC spwific license pending for his Evanston locatien. J. LARSEN said he currently had two orders for UAA from Hysol. J. LARSEN said that from November 1986 to the present his only source of DU had been Nuclear Metals, and said he had used the assumed business names of Orion Chemical Company, Larsen Laboratories, and Wrangler Laboratories. J. LARSEN said the business names were not corporations nor were they registered with any government entity. He said he had not used any ot.her names to receive DU cr ship UAA during that perioc. J. LARSEN said the ten DU shipments from Nuclear Metals be receivec in Wyoming were received by a me named Leroy and his associates at N. L. Acme Tools in Evanston, WY. J. LARSEN said he did not know Leroy's last name, but said be had his telephone number. J. LARSEN said that Leroy took possession of the DU as a favor to him, and he compensated Leroy with a six pack of beer. J. LARSEN said that Leroy arranged to have the DU locked up. J. LARSEN said that during 1987, he received ten 15 pound shipments of DU rietal slugs from Nuclear Metals, Concord, MA, (Exhibit 36) on the following dates: March 3, 1987 March 27, 1967 April 21,1987 June 2, 1987 June 26, 1987 July 17, 1987 August 6, 1987 September 9, 1987 September 23, 1987 October 19, 1987 J. LARSEN said that between November 1986 anc June 1987, he was in the process of boiling down some of his radioactive waste at his Lindon facility. J. LARSEN said he packaged the waste into seventeen E5 gallon drums and arranged to transfer these drums to the University of Utah. J. LARSEN said be had also cbtained a permit for burial of the waste at the icw level racio-active waste burial site r. ear Richland, WA. J. LARSEN said the waste he rid Case No. 4-88-002 19

1 generated since this shipment to the University of Utan was stored in his Lindon facility. J. LARSEN said that during 1987. K. h0ACK had handled the transfers of waste material from Evanston to the Lindon facility. J. LARSEN said that during 1987, he did not dispose of any radioactive waste in any manner other than to store it in Lindon, and said that to his knowledge K. NOACK had stored all waste in Lindon. J. LARSEN said he sometimes stored small amounts of source material at his home, and he assayed the UAA in one or two gram amounts at his l home because he kept his equipment there. J. LARSEN said that since November 1986, he had not received any shipments of DU metal slugs at his home in Provo, UT. J. LARSEN said that on November 12, 1987, the NRC sent him a CAL requesting bicassay infonnation for M. LARSEN, K. and B. NOACK, and himself. J. LARSEN said that during a December 3,1987, enforcement conference with the NRC which he Mtended in Salt Lake City, he informed the NRC of the bioassay results (En.. bit 29). J. LARSEN said the NRC requested additional urine samples from M. LARSEN and himself, because of the high readings he had reported. J. LARSEN saic the NRC sent him a subsequent CAL dated December 8, 1987, making a request for additional urine samples. INVESTIGATOR'S NOTE: The results of the testing of the samples are Exhibit 31 of this report. J. LARSEN said that on December 30, 1987, he telephoned Blair Spitzberg of the NRC ano asked for an extension of time to complete the decontamination of the Evanston facility. J. LARSEN said that during this conversation, Spitzberg asked him where the requested bioassay results were. J. LARSEN said he told Spitzberg the results were high and he had no explanation as to why they were high. INVESTIGATOR'S NOTE: Spitzberg made a written record of his conversation with J. LARSEN (Exhibit 34). J. LARSEN said that on December 31, 1987, the NRC sent him ancther CAL ordering him to cease all activity and obtain additional urine samples from M. LARSEN and himself. J. LARSEN explained that he had already collected a sample from M. LARSEN and himself on December 28, 1937, and said he took an additional sample for the two of them on December 31, 1987. He said the CAL further ordered that he continue taking samples from h. LARSEN ar.d himself every three days until the readings fell below a certain level. J. LARSEN said he took a urine sample from M. LARSEN on January 3,1988. J. LARSEN said tnat on January 6 or 7, 1988, he packaged and sent these samples to Energy Labs for analysis. J. LARSEN said he discontinued taking samples frem himself on December 31, 1987, because he anticipated lower readings and did not want to bear the expense of unnecessary testing. J. LARSEN said that on about January 8,1988, Energy Labs informed him that the urine samples had leaked in the container. J. LARSEN said the lab informed him they had tested what ren;ained from the samples, and the lab reported high readings. He said he chose not to report the Energy Labs anclysis results to the NRC, because he believed they were inaccurate (Exhibit 32). J. LARSEN saio he had not sent control san.ples to the labatory as requested by the NRC because it hao been his understanding that the labatcry supplied its own controls. J. LARSEN said that cn January 10, 1988, he Case No. 4-88-002 20

m resumed urine sampling and subsequently sent the samples' for & LARSEN and himself for January 10 and 13, 1988. J. LARSEN said that on January 21, the labatory reported low results - L (Exhibit 33). J. LARSEN explained that he did not take additional urine < samples as ordered, because he did not have sample containers that were I trustworthy. 'J.:LARSEN said he provided control samples with the January 10 and 13, 1988, samples and that these controls were taken from his wife. S. LARSEN, and a foreign exchange student. Tony LO. Willfulness / Intent ALLEGATION #1: Did J. LARSEN kncwingly exceed general license source material limitations? (1) JONES said that at the time of the suspension of J. LARSEN's Utah license, the Bureau of Radiation Control computed his DU inventory to exceed 100 pounds (Exhibit 19). (2) J. LARSEN argued the Utah's computations ure flawed and that he had no more than 60' pounds of source material. J. LARSEN said that based on an NRC headquarters interpretation of general license requirements, he did not believe his possession of DU metal at one location (Wyoming) and waste material (Utah) at a separate location constituted a violation (Exhibit 27). (3) A review of Nuclear Metals records established that during 1987, Nuclear Metals sent J. LARSEN 150 pounds of source material to Wyoming (Exhibit 36). (4) K. NOACK said that on two occasions he had transported waste crystals to Wyoming to complete the processing. K. NOACK estimated the weight of material on each occasion would have been about 15 pounds (Exhibit Z4). (5) J. LARSEN provided NRC inspectors with records of UAA shipments to Hysol beginning with the March 24, 1987 shipment. The records of UAA shipments to Hysol that he provided the NRC did not include his February 2, 1987 (13.44 pounds of source material), February 9,1987,(14.05 pounds of source material), February 17, 1987,(12.06 pcunds of source material), and March 3,1987,(16 pounds of source material). This constituted 55.55 pounds of source material not identified to the NRC. A complete list of shipment from J. LARSEN to Hysol for 1987 is containeo in Exhibit 35. (5) A review of Hysol records documented that during 1987 J. LARSEN shipped UAA to Hysol with a total assay weight of source material of 211.34 pounds. ALLEGATION *2: Did J. LARSEN make a material false statement in h1+ response to CALs relative to bionteay results? (1) The NFC sent J. LARSEN a series of CALs ordering that be take urine samples from specific employees, have the samples testec, and report the bioassay results to the NRC (Exhibits 14, 15, & 16). Case No. 4-88-C02 21

1 (2) J. LARSEN admitted he failed to meet all provisions of the CALs and did not report all test results to the NRC. J. LARSEN said his decision was based on what he considered to be faulty test results because of what he believed were contaminated sample bottles, his anticipation of lower bioassay results, his misunderstanding of the CAL instructions, and avoiding the unnecessary expense of testing (Exhibit 27). Specifically, J. LARSEN did not report the high bicassay results for samples received by Energy Laboratories on January 8, 1988 (Exhibit 32), bat'sAnalysis N This investigation concentrated on J. LARSEN's activities in Evanston, W nd focused on t time period from November 1986, after his Utah specifi icense gd was suspended, til 1987 when his NRC general license in Wyoming w suspended. The U Dureau of Radiation Control files contain te imony of hrn fomer J. LARSEN emp syees indicating that J. LARSEN's non-com ance with regulatory requirements d his questioriable safety practic in the handling

1. g of chemicals and source ma ials stretch back into the ly 1980s.

0 (;13 This investigation was limited scope by the res icted number of sources of information who had first-hand kn Qdge of J. 11SEN's activities curing the period of time in question. J. LARsE as story of usirg young students dAt*M) who are generally ignorant of the danger f the process. towever, the unvarying theme developed during this ' es gation and previous regulatory inquiries was J. LARSEN's consiste isregar for regulatory requirements and his indifference to the safety o is employees. J. LARSEN's failure to notify the NRC of the high biedsay results negate the NRC's ability to sake steps to determine the aff ced individuals' exposure. During the pendenc this investigation, J. LARSEN has i fqrmed NRC officials that he intend a move once again to a new state and begin prh essing DU if his applic3M6n for an NRC specific 1,icense is denied. J. LARSE, in the opinionji this investigator, is telling regulatory authorities tha e dces not hAfe to comply with existir.g regulations. Furthermore, because o loppfiole in regulatory requirements, he does not believe the government c i / op his activities. f Acent's Conclusion ALLEGATION #1: The evidence gathered during this investigation indicated that J. LARSEN knowingly and intentionally violateo the weight limitations related to the amounts of' source material he possessed under a general license. J. LARSEN mace two shipments to Hysol which centained assayec amounts of scurce material greater than the 15 pound limit aro his total shipments for the year aceedeo 150 pounds. Case ho. 4-88-002 22 )

l' l J. LARSEN's explained that the overages were the result of waste crystals maint: tined at a separate location, but the addition of waste crystals does not account for a 61.34 pound overage of source material for calendar year 1987. ALLEGATION #2: This investigation confirmed that J. LARSEN intentionally failed to cbey provisions of NRC confirmation of action letters relative to urine sampling procedures and intentionally withheld high bioassay results, because he unilaterally did not accept the test results. Had J. LARSEN conveyed the high bicassay results as instructed by the CALs, the NRC would have been moved to take additional actions to try and determine the extent of the affected individuals' exposure. Case No. 4-62-002 23

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j m i LIST OF EXHIBITS .l Exhibit . Description l No. 1. NRC' Order to Show Cause and Order Temporarily Suspending License dated September 3, 1982. 2. NRC Order Rescinding Order to Show Cause and Order Temporarily Suspending License dated October 25, 1982. 3.- NRC Notice of Violation and Proposed Imposition of Civil Penalty dated December 15, 1982. 4 Orion Chemical Co. response dated March-11, 1983. 5. March 29, 1983, NRC Office of Inspection and Audit Referral to. Department of Justice. 6. Utah Notice of Violation. Order, and Order to Shoow Cause Dated Ju'ne 11, 1986. 7. Orion Chemical Co. response dated July 12, 1986, 8. Utah Notice of Proposed Imposition of Civil Penalty dateo July 30, 1986. .9. Utah Inspection Report of Larsen Laboratories dated October 20, 1986. 10. State of Utah Order Suspending License and Order Imposing Civil Penalties dated November 5,1986. 11. November 10, 1987, Settlement Agreement between J. LARSEN anc Utah. 12. NRC Memorandum for Allegation File dated October 30, 1987. 13. NRC Irspection Report 99990004/87-04 dated. November 24, 1987. 14. NRC Confirmation of Action Letter to Larsen Labs dated November 12, 1987. 15. NRC Confirmation of Action Letter to Larsen labs dated December C. 1987. 16. NRC Confirmation of Action Letter to Larsen Labs, Inc. dated December 31, 1987. 17. NRC Order Suspending Larsen Labs General Licenses dated February 2, 1988. Case No. 4-08-002 25

l 18. Region IV Regional Administrator Request for Investigation dated December 14, 1987. 19. Report of Interview with JONES, February 29, 1988. 20. Report of Interview M (CONFIDENTIALITY GRANTED) M M 21. Report of Interview with ELLINGFORD, March 2, 1988. 22. Report of Interview with VUMBACCO, March 17, 1988. 23. Report of Interview with SNYDER, March 14, 1988. 24. Report of Interview with K. NOACK, March 2.1988. 25. Report of Interview with M. LARSEN, March 15, 1988. 26. Report of Interview with S. LARSEN, March 2, 1988. 27. Statement of J. LARSEN, March 3, 1988. 28. John LARSEN letter to the NRC dated December'28, 1987, regarding his processsing of DU in the Nevada desert. 29. Bioassay results for sanrnples received by Thermo Analytical Inc. (TMA) on November 19, 1987. 30. Bioassay results for suples received by TRA on November 30, 1987. 31. Bicassay resuts for samples recieved by TMA on December 9, 1987. 32. Bioassay results for samples received by Energy Laboratories en January 8, 1988. 33. Bioassay results for samples received by Energy Laboratories en January 20, 1988. 34. NRC Memorandum to the File by Blair Spitzberg documenting J. LARSEN's failure to comply with NRC Confirmation of Action Letters. 35. Orion Chemical Co.1987 records of UAA shipments to Hysol Co. 36. Nuclear Metals 1987 receros for shipment of depleted uranium to Evanston, Wyoming. Case No. 4-E8-002 25

~. f **c / m'e, UNITED STATES NUCLEAR REGULATORY COMMISSION e f I wAsmwcTow. o. c. rossa s,, / SEP 3 1962 License No. General License (10 CFR 40.22) EA 82-111 l Orion Chemical Company ATTN: Mr. John Larson 3853 North Shensood Drive Provo, Utah 84604 Gentlemen:

Subject:

Order To Show Cause and Order Temporarily Suspending License (Effecthe Immediately) Enclosed herewith is an Order, effective immediately, suspending your general license and directing you to show cause why your general license should not be revoked. In accordance with 10 CFR 2.790 of the NRC's Rules of Practice," Part 2 Title 10, Code of Federal Regulations, a copy of this letter and the enclosed Order will be placed in the NRC's Public Document Room. The responses directed by this letter and the accompanying Order are not subject to the clearance procedures of the Office of Management and Budget as required by the Paperwork Reduction Act of 1980, PL 96-511. Sincerely. I f Richard C. DeY

g. Di r

Office of Ins e ionanAforcement

Enclosure:

Order To Show Cause and Order Temporarily Suspending License (Effective Immediately) cc: Utah Department of Health Bureau of Radiation and Occupational Health ~ CERTIFIED MAIL l - --.-.:,_] RETURN RECE1E RE0 VESTED y3,34 4 002 ' j.

e UNITED STATES OF AMER 2CA NUCLEAR REGULATORY COPHISS10N In the Matter of .i OHon Chemical Company 3853 North Shemood DMye General Licensa Provo Utah 84604 (10 CFR 40.22) ORDER TO SHOW CAUSE'AND ORDER TEMPORARILY ): JEFFECTIVE If01EDIATELY) I. Orion Chemical Company,3853 North Shemood DMye, Provo, Utah 84 " licensee") is the holder of a general license granted by the Nucl Consission (the " Commission") pursuant to 10 CFR 40.22. The general l authoMzas the use or transfer of not more than 15 pounds of source ma ona time and the recaipt of not more than 150 pounds of source mate one calendar year. II. The risults of an inspection of the licensea's premisas at Drum, Utah conducte on August 23,1982 by a representative of the NRC Aegion IV Office, indicated that the liceesee had conducted licensed activities in violation of requirements as enumerated below: II-35 g

m E h 2-t 1. 10 CR 40.22(a) grants a genera.1 licensa authoMzing commercial and irdustria1 firm to use and 1:ransfer not more than 15 pounds of sourca. rateMai at one tism. l Contrary to thir authoMzatiot, the licensee had more than 15 pounds of. j . source mateMal at one. tima duMng August 1982. l 1 2. 10 CR 40.62(b) requirw each Ifcensee to maka available to the Commission for inspection, upon reasonable notice, records of transfer of licensed i mateMal kept pursuant to the regulations in Title 10, Code of Federai I l Regulations 1 Contrary to. this requirement, on August 23, 1982, the licenses refused. te make available to an MRC'inspecter thest reccrds cf transfar of source anteMal that 10 CFR 40.61(a) requires to be unintained. 3. 10 CR 40.22 grants a general license authodring commercial and industrial fims, to use and, transfer small quantities of sourca' mateMal. Disposal of source mateMal is to be made by transfer pursuint to 10 CR 40.51. Contrary to those requirements, the inspector observed contamination in areas outside of the licensee's business premises that apparently ~ resulted from unauthoMzed disposal of compounds containing depleted uranium.

l +- .j 4. 10 CFR 40.61(a) requires, in part, that each person who receives source asterial shall keep records showing the receipt of such a storial. Contrary to this requirement, such records of receipt were incompl . at the time of the inspection on August 23,1982. n 1 LII. The violations, enumerated in section II of this Order indicats a carwiess dis-regard by the licensee of Consission requirements. Violations 3 and 4 wem { identified during a previous inspection on November 2,1979, and were the b subject of a Notice of Violation dated JuTy ZZ,1980. These earlier violations. were also discussed between the licensee and Mr. Jerry Everett of NRC Regi Office on December 11, 1979, at which ties the. licensee agreed to cease unauthoMzed disposal and to decontaminate areas outside of the licans'ee's laboratory within 30 days. In further discussion on July 17, 1900 between the licensee and Mr. W E. Yetter of the NRC Region IV Offica, the licensee reaffirmed its commitment to cease unauthorized disposal of source esterial and agreed to decontaminate an area adjacent to the licensee's facility and to ensure sein-4 tenance of required records. Despite these consitzents the violation recurred Moreover, the licensee's handling of more than 15 pounds of source material at any one time and the licensee's refusal'to honor an NRC inspector's reasonable request for inspection of records required to be kept by the NRC also reflect II-37 t p i i a

1 q . the licensee's careless disregard for compliance with NRC requirements. Accordingly, the Director of the Office of Inspection'and. Enforr. ament has detensined pursuant to 10 CR 2.202.(f) that, in view of the willful nature of the licensee's violations, the licensee's authorization to receive and use source seteH al under the general liconse should be suspended, effective immediately, pending further order. { IV. In view of the foregoing, pursuant to section 62, 61,.161b, and 186 of tlne-4.touric Enery Act. of 1954, as amended, and the Commission's regulations in iO CFR Parts I and 40. IT IS HEPSY ORDERED THAT: A. Effective immediately, the licensee shall not receive or use source metaMal, except as permitted in Condition B below; Eff~ ctive. immediately the licensee shall place all source meteMal 8. e in its possession in locked storage or transfer such mateHal to a person, authorized to receive the material; C. Effective immediately, the licansee shall make available within 24 hourt of receipt of this order all recerds required to be kept in accordance with the general license for inspection by NRC inspectors; i and II-353 l f

i ~ .. - D. The licensee shall. show cause, in the sanner hereinafter provid why its authoHzation under the general license. in 10 CFR Part 40 receive and use source mateHal shon1d not remain periennently s Y. The Licensee may, withirr twenty-five days of the date of this Order, show cau l by filing a written answer to this Order under oath or affirmation. The licensee say also mquest a hearing within the said twenty-five day period. Any answer to this order or request for a hearing shall be addressed to the Director. Office of Inspection and Enforcement, USNRC, Washingtsit. 0.C. 20555. A of the answer or request for hearing sha'll alsa be sent to the Executive Legal Director, USNRC, Washington, D.C. 20555. Any answer to this Order shall spe fically admit or deny each alleged violation described in Section II above, and may set forth the matters, of fact and law upon which the licensee relies. If a heaHng is rer,uested, the Coeurission will issue an order designating the time and place of hearing. AN AltSWER OR REQUEST FOR HEARING SHALL NOT STAY THE TEMPORARY EFFECTIVENESS OF THIS ORDER. In the event a hearing is held, the issues to be considered at such t hearing shall be: i j l t i II-39

~ l 1 A.. Whether the licensee was in violation of the Commission's regulations. and the conditions of its general license as specified in section II, and L-

8.. Whether the Order should be sustained.

1 FOR THE NUCLEAR REGULATORY CopMISSION ,= Rich.trd C. Y ng, r Office of.I s ion nd Enforcement Dated at Bethesdt. Maryland l this 3 day of September 1982 1 h i1 AA

[, ,., e j . NUCLEAR REGULATORY COMMISSi~t umseublAlkS y nAsusscrow.o c.rosss 'o .a License No. General Licanse e (10CFR40.23) Orion' Chemical Company-ATTN: Mr. John P. Larsen 3853 North Sherwood Drive Provo, Utah 84604

Subject:

Order Rescinding Order to Show Cause and Order Temporarily Suspending License We have reviewed your response to the Order to Show Cause and Order Temporarily Suspending License dated September 3,1982. describe a number of corrective actions you plan to take including:In your res 1) measures to assure compliance with recordkeeping requ the conduct of operations including the use of protective clothing, and freque instrument and service monitoring, and 3) the use of containers at each step of the process to prevent spills and contamination. In addition, in discussions with NRC personnel,.you have committed to the use 6f a hood at each step of the process and to conduct all future operations in accordance with the recommendations of a cons'altant, Mr. Bob Decker of'Chamrand Corporation. In view of these repmsentations and commitments, on October 23, 1982, the Director of Inspection and Enforcement signed the enclosed Order rescir. ding the Order to Show Cause and Order Temporarily Suspending License. You should be aware, however, that the NRC is considering imposing a civil pe on you for the violations that gave rise to the show cause Order. Shnuld the -- Rsq1on IV, will issue a Notice of Violation proposing a pena ty to which youagency decide that a civil penalty should b wi' I be given the opportunity to respond. l ) In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," Part 2, Title 10, Code,of Federal Regulations, a copy of this letter and the enclosed i Order will be.placed in the NRC's Public Document Room. 4 Sin;grely,JJ% - Richard C. Young 1 rector Office of specti and Enforcement

Enclosure:

Order Rescinding Order to Show Cause and Order Temporarily .,A Suspending License ~ 4 002 II-41 g ~O g 744f i T. M. L i

of protective clothing, frequent instrument and service monitoring, and (3) the use of containers at each step of the process to prevent spills and i i contamination. In discussions with NRC personnel, the licensee has also L connitted to the use of a hood at each step of the process and to conduct i all future operations in accordance with the reconnendations of a consultant, Mr. Bob Decker of Chenrand Corporation. In addition, the licensee connitted to meet all state and local regulations. i i 1, in view of these representations and couritments, the Director of the Inspection and Enforcement has determined that rescission of the September 3, i 1982 Order is appropriate. i i III. i Accordingly, the licensee may resume operations in accordance with the requirements of the general license, issued under 10 C.F.R. 40.22 of the i Commission's regulations. 1 i FOR THE NUCLEAR REGULATORY CCNISSION ka Kichkrd C. DeY n, Di or Office of Ins ec ion forcement 1 } Detec at Bethesda, Maryland thispay of October,1982. i i 11-43 l 6 l AJ

i of protective clothing, frequent instrument and service monitoring, and (3) the use of containers at each step of the process to prevent spills and contamination. In discussions with NRC personnel, the licensee has also I connitted to the use of a hood at each step of the process and to conduct l all future operations in accordance with the recommendations of a consultant, 1 Mr. Sob Decker of Chenrand Corporation. In tddition, the licensee committed i to meet all state and local regulations. g In view of these representations and couritments, the Director of the i Inspection and Enforcement has deterwined that rescission of the September 3, i 1982 Order is appropriate. I i, III. Accordingly, the licensee may resume operations in accordance with the f requirveents of the general license, issued under 10 C.F.R. 40.22 of the Commission's regulations. i FOR THE NUCLEAR REGULATORY CCiWISSION j. ka Kichard C. DeYpGn. Di or OfficeofInsfcion forcement Datec at; Bethesda, Maryland thisMay of October,1982. i I !!-43

c .s f# "*%e UNTTED STAtts y NUCLf.AR REGULATORY COMMi&$lON i neoeoN tv D $11 RvAN PLAZA oRIVE Suf?E INS \\,,,,, AAUNGToN TEXAS Mm December 15, 1982 General License (10CFR40.22) EA 82-131 Orion Chemical Company ATTN: Mr. John P. Larseri P. O. Bix 7475 Provo, UT 84602 Gentlemen: This refers to the inspections conducted by personnel of the Nuclear Regulatory Commission (NRC) Region IV Office on August 23 and Septancer 27, 1982, at your previous and current facilities in Orem and Provo, Utah, respectively. The inspection on August 23, 1982 was an examination of the activities con-ducted under the general license described in 10 CFR 40.Z2. The inspection on September 27, 1982 was a review of the actions you took in response to the Order to Show Cause ano Order Tauporarily suspending License dated September 3, 1982. The results of the August 23, 1982 inspection revealed a violation of the requirements of your general Itcense in that, by your own admission, you possessed source material in amounts exceeding that allowed by the general - license. This violation was exacerbated bf the fact that you failed to make-records of source material-transfer available to the NRC inspector. The violations that were identified as a result of the Artgust 23, 1982 inspec-tion are listed in the enclosed Notice of Violation and Proposed Ipposition of Civil Penalty. We previously identified these violations to you in the Order of September 3,1982. No further vio'1stions were identified during the inspection on September 27, 1982. These violations-have been categorized at the severity levels described in NRC Enforcement Policy published in the Federal Register, 47 FR 9987 (March 9,1982). We are particularly concerned with the violation of 10 CFR 40.22 which author-1res commercial firms to use and transfer not more than 15 pounds of source material at any one time and a total of 150 pounds to be received in any calendar year. These Iteitations are necessary to protect the health and safety of workers and the public. In order to enphasize the need to adhere to NRC requirements to limit the quantities of source material, as set forth above, we propose the imposition of a civil penalty for the violation of this requirement. After consultation with the Director of the Office of Inspection and Enforcement. I have been authorized to issue the enclosed Notice of Viola-tion and Proposed Imposition of Civil Penalty in the cumulative amount of Five Hundred Dollars. RLTURh RLLL1Fi REQUESTED 3 CERTIFIED MAIL I -b 4 00? ~ I T - V.

a Orion Chemical Company. ou are required to respond to the Notice of Violation and, in preparing your response, you should follow the instructions specified in the Notice. Your written reply to this letter and Notice will be the basis for determining whether additional enforcement actions are warranted. The responses directed by this letter and the accompanying Notice are not subject to the clearance procedures of the Office of Management and Budget as required by the Paperwork Reduction Act of 1980. PL 96-511. In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," Part 2 Title 10. Code of Federal Regulations, a copy of this letter and the enclosure will be placed in the NRC's Public Document Room. Sincerely, $d!=./ sev John T. Collins Regional Administrator

Enclosure:

Notice of Violation and Proposed Imposition of Civil Penalty i l l .c: Utah Department of Health Bureau of Radiation and Occupational Health 1 l 5 l 11-35 l ________________.-_-_._m___-___.__.m_-_._

====gymm. NOTICE OF VIOLATION AND PROPOSED IMPOSITI F 0F CIVIL PENALTY Orion Chemical Company General License P. O. Box 7475 (10CFP40.22) Provo. UT 84602 EA 82-131 As a result of NRC inspections on August 23,1982 and September 27,1982 conducted at your previous and current facilities in Orem and Provo. Utah, respectively, it appears that several violations of NRC requirements have occurred. The most significant violatiens relate to your admission that source material was received and used in amounts greater than those allowed by NRC regulations (10 CFR 40.22), and the fact that you failed to make records of source material transfer available to the NRC inspector. To emphasize the need to adhere to the regulations of the Commission and to use radioactive materie's in quantities no greater than the limits set by the general. license, the Nuclear Reguletory Commission proposes the imposition of a civil penalty in the cumulative amount of Five Hundred Dollars for this matter. In accordance with the NRC Enforcement Policy (10 CFR Part 2. Appendix C) 47 FR 9987 (March 9.1982), and pursuant to Section 234 of the Atomic Energy Act of 1954, as amended ("Act") 42 U.S.C. 2282. PL 96-295, and 10 CFR 2.205, the particular violation and the associated civil penalty are set forth in Section I below: 1. CIVIL PENALTY VIOLATION 10 CFR 40.22(a) grants a general license authorizing comunercial and industrial finns to use and transfer not more than 15 pounds of source material at any one time. Contrary to this authorization, the Itcensee had a total of more than 15 pounds of source material at one time during August 1982. This is a Severity Level III violation (Supplement VI). (Civil Penalty $500) II. VIOLATIONS h0T ASSESSED CIVIL PEMM. TIES 1. 10 CFR 40.62(b) requires each lit.ensee to make available to the Consission for inspection, upon reasonable notice. records kept pursuant to the regulations in Title 10. Code of Federal Regulations. 10 CFR 40.61(a) requires that a licensee keep records showing the transfer of source material licensed pursuant to 10 CFR Part 40. 11-36

LI ~ I r l Nctice of Violation Contrary to this requirement, on August 23,1982, the licensee refused to make available to an NRC inspector records of transfer of source material licensed pursuant to 10 CFR Part 40. This is a Severity Level IV violation (Supplement VI). l 2. 10 CFR 40.22 grants a general license authorizing commercial and industrial firms to use and transfer small quantities of source material. Disposal of source materisi is to be ude by transfer pursuant to 10 CFR 40.51. Contrary to those requirements, the licensee has disposed of source material in the vidnity of its facilities rather than by transfer pursuant to 10 CFR 40.51. This is a Severity Level IV violation (Supplement VI). 3. 10 CFR 40.61(a) requires that each person who receives source material licensed pursuant to 10 CFR Part 40 shall keep records showing the receipt of such material. Contrary to this requirement, the licensee's records of receipt of source material licensed pursuant to 10 CFR Part 40 were incom-plete at the time of the inspection on August 23, 1982. This is a Severity Level IV violation (Supplement VI). Pursuant to the provisions of 10 CFR 2.201, Orion Chemical Company is hereb'y required to submit to the Director, Office of Inspection and Enforcement. USNRC, Washington, DC 20555, and a copy to the Regional Administrator USRNC, Region IV, within thirty days of the date of this Notice, a written statement or explanation in reply, including for each alleged violation: (1) admission or denial of the alleged violation; (2) the reasons for the violation. if admitted; (3) the corrective steps that have been taken and the results achieved; (4) the corrective steps that will be taken to avoid further violations; and (5) the date when full compliance will be achieved. Consideration may be given to extending the response tire for good cause shown. Under the authority-of Section 182 of the Act, 42 U.S.C. 2232, this response shall be submitted under oath or affirmation. ] Within the same time provided for the respont.e required above under 10 CFR 2.201, Orion Chemical Company may pay the civil penalty in the cumulative amount of Five Hundred Dollars, or may protest imposition of the civil penalty in whole or in part by a written answer. Should Orion Chemical Company fail to answer within the time specified, the Director, Office of Inspection and Enforcement, will issue an order imposing the civil penalty in the amount proposed above. Should Orion Chemical Company elect to file an answer in accordance with 10 CFR 2.205 protesting the civil penalty, such answer may: (1) deny the viola-tions listed in this Notice in whole or in part; (2) demonstrate extenuating circumstances; (3) show error in this Notice; or (4) show other reasons why the I Il-37 1 l

1 J stice of Violation penalty should not be imposed. In addition to protesting the civil penalty in whole or in part, such answer may request remission or mitigation of the penalty. In requesting sitigation of the proposed penalty, the five factors contained in Section IV(B) of 10 CFR Part 2. Appendix C should be addressed. Any written answer in accerdance with 10 CFR 2.205 should be set forth sepa-rately from the statement or explanation in reply pursuant to 10 CFR 2.201, but may incorporate by specific reference (e.g., citing page and paragraph numbers) to avoid repetition. Orion Chemical Company's attention is directed to the other provisions of 10 CFR 2.205 regarding the procedure for imposing a civil penalty. Upon failure to pay any civil penalty due, which has been subsequently determined in accordance with the appitcable provisions of 10 CFR 2.205, this matter may be referred to the Attorney General, and the penalty, unless compromised, remitted, or mitigated, may be collected by civil action pursuant to Section 234c of the Act, 42 U.S.C. 2282. FOR THE NUCLEAR REGULATORY CO*1$5I0N [ M John [. Collins R:gional Administrator Dated at Arlington, Texas this /Eday of December 1982 l 11-38 1

Derl 5 - ff-f 5 (At .s' M QMMICAL MPARY reses asaaewr -=.s Maret. 11, 1983 NRJ6se United States Baelear nogalatory Deesissian Reglan IV 611 Ryan Flaan kive, Mte 1000 Ar11agten, hans 74011 Genstement In answer to the *0RDER 10 SEW CACBE AFD ORJEt SMPORARII.T ESPDrg1NG Litapst* dated Septenhar 3,1982,)and tas four eacuestions sentained withia, this letter will easwer (1 Adatesian er denial, (2) Resonas taiags happened, (3) Carrective esasures te sleen up, (4) Carressive sensures is prevent futaire prehless, ($) Dati for achievosent er earreesians, FIRST ACES &TICNs 10 CPR 40.22...tas authority ct fires to see end tresafer met more them 15 p@ounds et sourse estatal at oss time. (1) we de met eenr the al ties et tavtag more then 15 romads et ese ties. (2) the rossoas ter this vielstiam me beaumes of the large defense esatreet whiah we had te proewes for, and the eslar ia een-sidering our appliestias for a epocific Linease to hamde the larger the 15 pound enounts, whiek we opplied for May 4,1982. (3) We have semplied win ths SC regulation until we receive sur oposific linesse tres the NRC for 14rger ameusta et depleted urmaien. (4) We will ensply with the NK0 regulatias until we receite sur specific liessee. (5) Immediately. SECCND 405!8ATIC2 to CPR 40.6t(b).. asks ava11this records of trasefer et 113essoa antarial. (1) We de met deny the allagsties. (2) Our reeerts were et ditterent places when tes *=r;rJ arrived, and were ast tagether la one plses. The reacPds needed .f te he updated, alec. I told the inepectar I wouls have thes for him i tomorrow martir.g. last be said he was 1saving tect. and needed thes sev. 1 ()) We have seat la sur resorts et reestyt and transfar et i i 1 4 '88 ')02 1/ m en., g3,39 j ..,_ 3 asuwo uruieeer = cooteenmeses = = - au* e SoWes MJ W i

l-

[ ORtN(, Ci!EMICM. Cw!W rises asmeewt ameneM:aks depleted uremian into the NEC offices. (4) ils are new keeping better reeerde of tes materf.a1 and keeping then together in ano plaes, one book. (5) Immediately. TifDtD AcllUSATION: 10 CPR 40.22... sostaminatian outside of the hustaess promises that apparently resulted free unautherised disposal of soupeunds sea *=w f depleted uranima. (1) his aehaewledge spillage outside, ese to our working outside ter maassua vaattuasian purpenes, but w demy unauthorized dispoomi of esopounds. ve, in feet, have kept all of our waste aludge la 55 anan harrois musistas dispeemi instruatione, met keeving est to. as with them. (2) tie anved our aludge in 55 genen terrule, nos kneving est to de with the asterials, and alas lately we have a rosynling pessoas which we would like to reverk the sludge and extrasi and use up me-uneh as possibis the det).eted U-238 out of the shdg. (3) nie are belling deus the liquid aludge in ethr te solidity for treaster to a liaansed waste disposer. (4) ife vill esatiano te heil down any ligaid aludges, and we have eeutseted iluelaar Servises Corp. La Salt Lake City for trsasterring wastes to disposal site in Riehland, liashington. i (5) Immediately. l l FCURS ACCESATIC5: 10 CFR 40.61 (a)...each pereen war, cessivoc 4 eeures asterial shall keep records of reesipt showing tan rossipt l et eueh meterial. (1) lie had the reesipts, but didn't keep resorts up ta date, ) ready for Lampostaan. ife de set deny that they were ineenplete at the tias. (t) ife were under slet of preneurs to produos the omtalyet l at the time, and neglected to keep good resents. (3) The asserds have been updated and espies seat to the atC. (4) ile vill esatiaue te keep better records in the future es4 have thon' ready for inspection. (5) Immediately. I I I.

j oqoP(, @EJUCAL NPA&Y meet nsAmewr caswecats + IN ETMMARI: We are a small on e sospsay with as invention wkteh helps estalyse a plasties reactica for the Defense Department, and 4to to lack of experionoe with records noosemary for NP.C sosplianee, as wall as vansing te recycle the waste asterials (which we saved and didn't dispose of with "sanless disregard,8) and under pressure for productien of larger amounts of the estalyst, together with longer taan espected liceassig delay, we were sa violatias of mose NRC regulations. We have sisoe abided with and esoplied te the ngulations. We have sians shLded with and opeplied to theWe regulations, and have paid a fame of iS00.00 for the violation. latend te met vielste any regala h 8 La the fuM7e. ISB88FEly FWEF8e - '." Y a

r. -

123r7 i m/al e l i i I l kh gM II~4I puu:Pyc utAes team aseenamac -w aw ooot ammwen or M

4 March 29, 1983 ?' "r. Sanuel Alba Assistant U. S. Attorney

p. O. Box 2750 Salt Lake City, Utah 84110

Dear Hr. Alba:

the regulatory requirements of 10 CFR by a licens u violations of Regulatory Comission (NRC). e U.S. Nuclear issued by NRC to handle radioactive source mat er a general license than 15 pounds at any one time. n quantities no greater a radioactive source naterial to obte% e M4uct which is ultinat to a Departnent of Defense contractor for php in ordnances. e y supplied By way of background, NRC first became avAre that the li Novenber 1979 that the licensee was making unau officials in product containing depleted uraniun. sposals of a waste Utah State representatives verified that the licens , Utah, by NRC and radioactive source material in violation of the requirenentsnproperly disp Additionally, it was noted that the licensee was not mai t i i of 10 CFR 40.51. receipt, use, or transfer as required by 10 CFR 40.61 n a n ng records of outside and ad.jacent to it. contamination were also noted both insid well as with Mr. John Larson, who is in effect, Orion Che n c corrnunications representatives thoroughly discussed the violations noted and y, HRC required of hin to achieve compliance with the requirements of 10 C what was gsneral license. An Imediate Action Letter documenting the violations not by NRC during the onsite inspection and verbal comitments to and his compliance which were made by Mr. Larson was sent to his busine l achieve certified mail. However, this letter was returned to NRC narked unclained That letter was again sent by certified mail to Mr ress by no response to it was received by NRC. . Larson's hone address, but Telephone ccitect with fir. Larson was again initiated by NRC i further discuss in depth the nature of the violations n t d n July 1980 to tion and what corrective actions were required of hin oe during the inspec-at that time that he had already effected some measure. Mr. Larson indicated During that telephone conversation Mr. Larson was also infos to achieve bility of escalated civil enforcement action by NRC if his c rned of the possi-conpliance were not effected in a tinely fashion. omitments towards documented by letter fron NRC to Mr. Larson and was sent bThis conversati ~~ ~ pne ca wc 6 j. .y r ol io,nng tne conversa uon. y registered nail on anoruy eT ur toa t conr i ma uon mue m4=c)

g........

onn > lf.. 8n.:.D.O.2- . u. b~ m.3 ..................,.........l w u no.aom:u neo OFFICIAL RECORD mov 7 - - - - - ~~

S l wasi nailet'. NRC issued a t!otice'of Violation to fir. Larson for the violations cited during the inspection of Orion'Chenical Company. The Notice of vin. 'l lation reouired a response from hin, however, no response was nede by hin. l-Through an administrative oversight by NRC, his failure to respond was never purued. . In August 1982 a Utah Departnant of Health representative notified NRC that ' Orion Chemical Company was apparently in possession of radioactive snurce material in the fom of depleted uranium in excess of the limits: specified in the oaneral license issued by HRC. litah State representatives then conductor' an investigation at the licens*e's facility as did NRC. These investigations . disclosed that the licensee still had not initis.ted corrective actions previously reoutred as the result of the.1979 inspection. In addition, other violations of 10 CFR were cited. tie. Larson also refused to seke available to the NRC inspector any records nf transfer as required by 10 CFR en.62(h). He purported that those records were proprietary infomation.. Rased on the rescits of this nnre.recent inspection and the licensee's.previnus actions, en Order to Show Cause and an Order Temporarily Suspending License was issued by NRC..The Order listed what the licensee was in violation of and directed that .a number of corrective actions be implemented by him. fir. Larson responded tn the Order with a letter proffering.various reasons which attempted to mitinate his actions regarding noncompliance., Follow up inspectinn by NRC was then-undertaken to assure that the. licensee was complying with the Order. Rased on that inspection NRC. believed the licensee was complying with the Order and therefore rescinded it. On December 15, 1982, NRC issued a Notice of Violation citing the infractions noted durina the onsite inspection which precipitated the Show Cause Order. The Notice of Violation required a response within 30 days fron the licensee. A civil penalty for $500 was also issued by NRC in con.iunction with the Notice of Violation. f1r. Larson has suhnitted payment for the civil penalty and a partial response with regard to corrective action taken as a result of the Notice of Vinlation. NRC sonin contacted Mr. Larson regarding his incomplete response concerning corrective actions by him and specified a time linit for receipt of that infomation. To date tir. Larson has submitted another partial response. Notwithstanding the regulatory violations by Mr. Larson, certain of these violations appear to be criminal. Specifically, for the purposes of Section 223 (42 USC 2273) of the Atomic Enero Act of 1954, as amended, which provides for criminal sanctions, 10 CFR 40.62(y) is issued under Section 161o (42 USC b 7.201(o)); 10 CFR 40.51 is issued under Section 161h (42 USC 2201(h)) and 10 CFR 40.61(a) is issued under 161o (42 USC 2201 (n)). In consideration of the prosecutive Merits of this case,.it should he noted that certain NRC technical staff has expressed their opinion that from a public health and safety aspect concernion radioactive contamination, the violations listed supra are not significant unless an individual ingested significant antnnts of the contaminant. However, the inhalation nr incestion of the contaminant could potentially have a toxic effect on an individual. In final analysis, the recent efforts by Mr. Larson towards compliance are an improvement as cor: pared to his past record, however, it appears they may be somewhat specious. Mr. Larson has expressed his intention to obtain a specific l icense f rom r xL wr. ten woul o enaDie ntn to nanal ep.ter than It .................................epr onest cuaman 6 mars >

=== m umemapa:uem OFF1ClAL RECORD COPY ac.o.. 33. .- ) i

s-. l, s, l ) { pounds of source naterial at any one tire anti therehy increase his productinn. He has' been assured by NRC that unless ha achieves full compliance recarding his past violations, a specific license will.not be considered. l I have enclosed the pertinent NRC repnrts and documentation for this case. Should you need further assistance, please contact Mark Resner of mv staff i (FTS 492-4452). Please advise me what action, if any, you nay purs'un. Sincerely, Janas J. Cummings, Director Office of Inspector and Auditor

Enclosures:

A IA OIA CIA oncep sunune> .KResnarlbs)....19.v.t.t.s. C.usmin&F... ....M.... / 8 3 3/ /83 .... 3/18/83 3 we y nrrac Ai. RECORD COPY

vu. Norman H Bangerter u., --- [ g f Suzanne Danooy M.D M PH g4.,e' e I e:..e 3::- June 11. 1986 Larsen Laboratories ATTN: John P. Larsen 3853 North Sherwood Drive Provo. Utah 84604 Rat Radioactive Materials License No. UT 2500183 Centlemen: SURJECT: NOTICE OF VIOLATION. ORDEF., AND ORDER TO SHOW CAUSE Enclosed herewith is a Notice of Violation. Order, and Order to Show Cause why your license should not be revoked. Also attached is a copy of the Report of Investigation. The responses directed by these orders are to be sent to sry attention within the specified period of time. Sincer f\\/}. L M% Larry P. derson. Director Sureau Radiation Control trA/in Enclosure .h-- I . lb 4 -BB - 0 0 2 m m m. w ww m ~w __m_._____._-___.___._--____m_._

~ UTAH DEPARTPENT OF EALTH BJtEAU O~ RADIATION CONTROL In the matter of Larsen Laboratories License No. UT 2500183 3853 N::th Snetwoop Drive Provo, Utah B46G4 + NOT::E Or VIOLATION. ORDER AND ORDER TO SHOW CAUSE I. Larsen Lae:ratories, 3853 N::tn Sherwood Drive, Provo, Utah 84604 (the " licensee") is the holce: of a soe:ific license, category 20, granted by the 'ureau of Radiatien Cont:cl (the "B.:: eau") of the Utah Department of Htalth. ~ ' Radica:tive Material License No. UT 2500183 auth::izes the licensee to transfer, receive, possess and use source material (depleted uranium) for a manufa:turing pro:ess. II. The results of an investigation of the licensee's a:tivities and facility at 0:et, Utah, condu:ted on April 16 and 21,1986 and May 7 and 12,1986 by Bureau representatives, indicated that the licensee had condu:ted licensed a:tivities in violation of Bureau requirements as enumerated below: 1. Regulation U C-24-130(1) reouires a licensee to dispose of source mat'erial Dy transfer pursuant to U C 400. Contrary to these requirements, the licensee has disposed of soufce material in the vicinity of its facilities rather than by transfer pursutant to UC-19-400. _____------------__--_-_----_--r__ J

} l. t ( . This violation is of'significant concern. The violation was l identifiec during previous Nuclear Regulatory Comission inspe:tions i on Novece: 2, 1979 and August 23, 1982 and has occurred despite procedures implemented by the licensee. 2. Regulation URC-24-040(1) requires,. in part,.that no licensee or registrant shall possess, use, or transfer sources of radiation in such a manner as to create in any unrestricted area radiation levels which, if an individual were continuously present in the area, could result in the individual receiving a dose in excess of two millirems in any one hour. Contrary t: this requirement, radioactive material was detected on May 7,1986 in an unrestricted area in the vicinity of tne licensee's ) ,fa:ility such that if an indivioual were continuously present, a dose in ex:ess of two millirems in any one hour may be re:eived. 3. Regulation UC-24-120(1) reovires that li:ensed materials stered in an unrestricted area shall be secured from unauthorized removal;from the cla:e of storage. Contrary to this re:uirement, it was determined on April 18, 1986 that the li:ensee stered source material on an open truck in an v* restricted area su:n that the licensed materials were not secured from unauthorized removal. 4. Regulation URC-24-085 requires, in part, that each licensee shall make or cause to be made such surveys as may be necessary for the licensee to establish compliance with these regulations. Pursuant to state'ments mace in item 2 of letter received Deceeer 16,1983 by the NRC, the licensee committed to comply with the provisions of NC Regulatory Guide 8.11, " Applications of Bioassay for. Uranium". Contrary to the above, the licensee failed to conduct a preparatory evaluation for non-transo:rtable uranium in workers and failed to condu:t surveys at the required frequency. 5. URC-24 070 recuires, in part, that each licensee shall supply appropriate personnel monitoring eovipment to individual employees, furthermore, license Condition 15 requires that licensed material De used.in accorcance with statements, representations and proceoures contained in U.S. NC ficense SUS-1436 as in effect April 1,1984 A. The " Operations Manual... Larsen Laboratory" states that for P3 days, thermoluminescent dosimeters will be used to evaluate potential external radiation exposure. B. During interviews with Mr. John Larsen of Larsen Laboratories, it was determined that Mr. Larsen's 16 year old son had worked at the laboratory. Regulation UC-24-035 limits exposures to minors. Is

-3 ' Contrary to the above, external radiation dosimetry was not provided. Coin:icentally, determination of radiation exposure to a minor could not be previoed. 6. URO-48-040(1)(b) reagires, in part, that radiation exposure cata fer an individual be reported to the individual in writing and including the name of the incividual and the individual's so:ial security numer. ~ Contrary to the above, urinalysis bionssay data reported.bly 9,1985 was not identified by individual name or social security nuusier. 7. License Condition 15 reovires, in part, that licensed material be used in a:ccreance with statements, representations, and procedures contained in NRO license 5U5-1436 as in effect April 1, 1984. License' Condition 14 of NRO li:ense 5U3.1436 required licensed material to be used in a::ordan:e with statements, representations,'and cro:edures contained in sooli:stion re:eivec Novemoer 16, 1983 and letter re:eived De: ember 16, 1983. s. In item 20 of letter received Decemoer 16, 1983, the licensee stated that tues would be used under all processes to catch any s;:illage of ra:ios:tive materials. Contrary to the above, the licensee's engineering controls failed sin:e racion::ive contamination was detected on the ma:acam ~~ surface in front of Gold Key Storage, Unit #3 at 2000 South 450 West, Drem, Utah on April 18, 1986. o. On page 12 of the " Operation Manuel... Larsen Laboratory" suomitted with application received November 16, 1983, the licensee stated, " Training and updating of personnel training will be part of the radiation orientation program. In medition, on-the-job instructions, written instructions, and procedural reviews will be previoed and the training documented." ~ Contrary to the above, as determined on May 7,1986, the licensee failed to document personnel training. ' n page 10 of the " Operations Manual... Larsen Laboratory" O l I suomitted witn application received November 16, 1983, the licensee stated that radiation survey instrument calibration would be performed at a frequency of semi-annually. Contrary to the above, between the period of October 8,1982 to May 7,1986, the licensee failed to caliorate a Ludlum survey instrument model 3, S/N 24101. c. In item 18 of letter received Deceeer 16, 1983, the licensee stated that change room fa:ilities would be provided for employees. O---__-___-_-______---__--__---

1 r. h 4 ( Contrary to the 'above, the licensee failed'to provide change room facilities at 2000 South 450 West, Gold Key Storage, Unit # 3, Orem, Utah for employees. 8. UC-19-300 requires, in part, that a licensee confine his use and p:ssession of licensed radioactive materials to the locations astnerized in tne license. Contrary to the above, licensed materials were used at Parish Chemical ^! Company,145 North Geneva Road, Drem, Utah on April 18,1986 and remain at that location. Contrary to the above, licensed materials were used at a resioence lo:stec at 3653 Nortn Sherwood Drive, Provo, Utah on May 12, 1986. 9. ' License Condition 15 receires that licensed material be used in 3 . a:::::an:e with statements, representations and procedures contained in U.S. NC li:ense SUB-14%, as in effect April 1, 1984. On page 9 of -he " Operation Manual... Larsen Laboratory," it states that Is:ica:tive particulate air sampling will oe accomplishes oy tne use of lapel type air samplers. C:.::ary to the acove, personnel air sampling was not performed.

10. License Condition 15 recuires, in part, that licensed material be used 17 a::oreance with statements, representations and procedures contained in U.S. NC license SUB-1436 as in effect April 1, 1984..

l a. The "Larsen Laceratory Operation Manual" states on page 11 that 'for fixed or removacle contamination, the limits as stated in NRC

• Guidelines for Decontamination of Facilities and Eguipment Prior to Release for Unrestricted Use or Termination of License for Byproduct Source or Special Nuclear Materials" will be used in performing surveys, b.

The "Larsen Laboratory Operations Manual" on page 5 states that prior to packaging fer shipment, a survey will oe taken {or smearacle contamination and not to exceed 500 opm/100 cm. Contrary to the above, contamination surveys were not performec.

11. UC-l'9-5:D(4) and Title'49 Code of Federal Regulations Part 173.415 reovires, in part that each shipper utilizing a DOT Specification 7A container is required to maintain on file, for at least one year after the latest shipment, a complete package certification.

Contrary to the above, a shippers certification was not available for the boxes used for tne shipment of the product radioactive matertal.

.' 1 \\ r

12. Regalation $0-19-400(2) requires, in part, that a licensee transfer radioactive material to any person authorized to receive such material pursuant to URC-19-400(4).

Contrary to the above, the licensee transferred radioactive material to the Hysel Company, Olean, New York on May 2,1986 (invoice i without obtaining acceptable verification that Mysal Company f 3827486) was autnerizeo to receive radioactive materials. 13. Regulation UR'-24-090(1)(g)(1) requires, in part, that each area or room in wnich any radioactive material is used or stored in an amount exceeding 10 times the cuantity of radioactive material specified in Appenoix B snall be conspicuously posted with a sign or signs bearing tne radiation caution symoci and the worcs: CAUTION - RADIOACTIVE MATERIAL. Contrary to this requirement. on May 7,1986, Gold Key Storage Unit # 3 at 2000 South 450 West, Crem, Utan contained radioactive material without the required posting. 14 UR 090(1)(n) requires in part, that containers of radioactive material shall bear a clearly visible label with the worcing " CAUTION - RA0;0A;TIVE MATERIAL". Contrary to the above, various crocess containers and waste storage containers located at 2000 Soutn 450 West, Gold Key Storage, Lhit # 3,' Orem, Utah were not labeled. Contrary t'o the above, 23 assorted dfums containing radioactive waste material located at Parisn Chemical Company,145 North Geneva Road, Orem, Utan were not labelec.

15. UR -4B-030(1)(c) requires, in part, that all individuals working in or frequenting a restricted area shall oe instructed in and instructed to observe, to the extent within the workers control, provisions of the Utan Radiation Control Regulations and license.

~ Contrary to"the above, an employee of Larsen Laboratory disp sed of radioactive waste at an unauthorized location and in an unauthorized manner in the vicinity of 2000 South 450 West, Gold Key Storage Unit # 3, Orem, Utan on May 1, 1986.

16. UC-4B-020(3) reovires that each licensee post, wherever individuals work in or frequent a restricted area, a copy of the form, BC-04,

" Notice to Employees". Contrary to the above, form BT-04 was not posted at 20D South 450 West, Gold Key Unit # 3, Orem, Utah on May 7,1986.

4 17. Regulatien LRO-24-18D(2) requires, in part, that each licensee shall report immediately and confirm promptly by letter to the Utah Department of Health, BJreau of Radiation Control, the actual or attempted theft or loss as soon as such theft' or loss becoms known to the licensee of any quantity of radioactive material. Contrary to this requirement, the licensee failed to report to the EL'reau of Radiation Control a burglary at 2000 South 450 West, Gold Key Storage Unit # 3, Orem, Utah. The Bureau discovered on tesy 7, 1966 that the licensee had reported a burglary on May 1,1996 to a local law enforcement agency without reporting said burglary to tne Bureau. III. The violations en.nerated in Se: tion II of this Order show a careless-disre;are by the li:ensee of Department of Health requirements. Licensees m;st s: mere strictly to radiation safety reaalrements so that the use of Jensed material does not create a radiation hazard to workers and memoers of the puolic. Viciation 1 was identifico during an NRO inspection on Novencer 2,1979 and was cetailed in a Notice of Violation issued by the MJelear Regulatory Com.ission (E) on kly 22, 1980. The licensee agreed to cease unauthorized ra::ica:tive waste disposal in a discussion with Mr..krry Everett of NRC Region IV office on Decencer 11, 1979. The licensee reaffirmed its comitment j to cease unauthorized disposal on 11y 17,1980 in a discussion with Mr. W.E. 1 Vetter of $0 Region IV office.. Despite these comitments, Violation 1 was { the subje:t of an NRO Order to Show Cause and Order Temporarily Suspending License (Effective Immediately) dated September 3, 1982. The licensee denied

' 7_ i the unauth::1:ed disposal in a letter to the NC dated September 24, 1982 and suomitted that observed contamination was the result of an'a :idental spill of radica:tive materials. The licensee conrnitted to the use of containers at ea:h step of the pic:ess to prevent spills and contamination in a letter to the IE cated Septencer 24, 1982. Despite the licensee's commitment to implement en;ineering controls to contain radioactive materials, contamination was dete:ted on a ma:acam surfa:e outsice the licensee's fa:ility on April 18, 1986. On May 1,1956, a Utah County Sheriff Deputy was asked by inciviouals cleaning the litenste's facility to survey a lo:ation where an individual had disposed

• rraterial in the vicinity of tne licensee's facility. The Deputy's radiation survey instrument responced p:sitively to the presence of radiation. Bureau investigators measured an exp:sure rate of 3.8 mR/hr above background radiation at the disposal site on May 7,1986.

Fer appr:ximately~ a two year period pric: to April 18, 1986, the licensee stored radion:tive waste on a truck parked in an unrestricted area. The long term storage has resulted in less of pa:kage integrity and resultant contamination of the truck and soil beneath the truck. In addition, the licensee has failed to maintain security from unauthorized removal of the waste. It is apparent that the licensee has disregarded Bureau regulations ~ regarding the disposal of radioactive waste and has failed to conply with vnitments made in response to previous NC Orders and N3tices of Violation. I 1

In an a: plication re:eived by tne NRC on Novemoer 16, 1983 and letter received by tne NC on De: ember 16, 1983, thelicenseemadeNecificrepresentations anc state ents regarding its a:tions to assure that the use of the licensed material old not create a radiation hazard to workers and members of the publi:. In an investigation of the licensee's activities on May 7 and 12, 1986, tne Bureau determined that the licensee failed to establish compliiince with re.alations re; arcing personnel external and internal exposure to rati:a:iivematerials. Due to the licensee's failure to comply with tne Utah Raciation Co.:::: :.e;ulations and state ents, representations, and procedures su.i:te: to cottin a radioactive materials license, the Bureau canne: De - assu ei: tnat the use of li:ensed material has not created a radiation hazard 's w::kers a. ce=ers of the puoli:. A:c::. din;1y, it is determined that, in view of the nature of the licensee's violation, that tne licensee's authorization to use, receive and transfer depleted uranium unte: Utah license No. UT 2500183 should be considered for revo:stion. IV. In view of the fere;:ing, pursuant to UC-19-350, IT IS HEREBY OCERED THAT: A. The licensee shall provide within 30 days after receipt of this letter a written response, whi:h shall in:1ude: e

1. An admittance or denial and explanation for each listed violation. 2. The steps which have been or will be taken to correct each violation. 3. The corre:tive actions whi:h will be taken to avoid further violations. 4. The cate when full compliance will be achieveo. E. Tne licensee shall develop, and submit for Bureau approval within thirty, (30) deys after re:eipt' of this Droer, a radioactive waste disposal plan containing the following information: 1) Proce3Jres for pa:kaging,' repackaging, transportation and transfer of all radion:tive waste I,tored at Parish Diemical Company, Drem, Utah and 2000 South 450 West, Gold Key Storage . Unit i 3, Orem, Utah; 1 2) Procedures for removal, packaging, transportation, and transfer of all soil contaminated with depleted uranium in the vicin'ity of Parish Chemical Conpany, Orem, Utah and 2000 South 450 West, Gold Key Storage Unit i 3, Orem, Utah;

l, J.. p . y 3) Pro:ec.::es fe; decontamination or transfe of 1974 Ford truck,. identification number C61EVU48688; and' 4) The cate by which the licensee shall complete the transfer of all radioactive waste to a person licensed to receive'auen me:erial; C. Dursuant to LRO-24-080, the licensee shall obtain, within thirty (30) . crys afte: receipt of this Order. an,1,n vivo lung bioassay fc: uranium n in :ne f:ilicwing individuals: John D. Larson and Kevin Novac,, and s all suomi: a resort of the ojonssay results to the Bureau; and D. Tne licensee shall snow cause why its authorization under Radioactive Material License No. UT 2503183 to transfer, receive, possess and'use depleted uranium should not be permanently revoked my filing a written answer within thirty (30) days of the date of receipt of this Order. V. Tnis 3:ce; is considered final unless the licensee requests, witnin thirty (30) days of the date of this Order, a hearing pursuant to Utah Code Annotated 26-23-2. Any answer to this Order or request for a hearing shall be addressed to Larry Anderson, Director, Bureau of Radiation Control, Post Office Bo'x 16700, Salt Lake City, Utah 84116-0700. Any answer to this Order or request

l - i fer a hearing shall spe:ifically annit or deny es:b violation described in Se:ti:n II aoove, and shall set forth the matters of fact and law upon which the li:ensee relies. If a hearing is requested, the Bureau will designate the ti e and pla:e of hearing. AN ANSWER OR REQUEST FOR HEARING SHALL WT STAY REQUIREMENTS OF THIS OCER TO COPLY WITH TE PRCNISIONS OF UTAH LAW A@ i RE;'J ATIONS. In the event a hearing is held, the issues to be considered shall include: A. Whetner ne licensee was in violation of the Utah Radiation Control Regalstions and the Conditions of Radioactive Material License No. UT 25331E3 as spe:ified in Section II, B. Whether the Order should be sustained, and C. Whether the license of Larsen Laboratories should be permanently revoked. FOR TE DEPARTENT OF EALTH l k Suzan Dandoy, M.D., M.P.H. Executive Director Dated at Salt Lake City, Utah is /O day of ine,1986

• (

Utah breau of Radiation Control REPORT OF IN/ESTIGATION Investigation Report No. 86-01 License No. UT 2500183 Licensee: Larsen Laboratories Specific License: Category 2-b 3853 North Sherwood Drive Provo, Utah 84604

Subject:

Specific License Requirements Period of Investigation: April 16 to May 12, 1986 Investigators: [En /I be O -s 2 /M/- Craig W. nes, He A h Physicist Dat.e 'J l W, /w-l % v 12. /Fil Dane L. F nyrfro 4 Healtn Physicist Oste '/ h/ac d /9g eviewed By: Adh -_+ Larry F. Derson, Director pte Bureau distion Control Investigation Sunrnary: hreasInvesticated: Investigation of depleted uranium storage, disposal, contarrJ. nation, possession, use, and records. The investigation involved four (A) investigator hours by two Bureau investigators at a site where the licensee stored depleted uranium waste and eleven (11) investigator hours by, two (2) kreau investigators at the licensee's previous and current work sites. Results: Seventeen (17) items of non-compliance were identified. O e

. t REhSON FOR IWESTICATION The breau of Radiation Control was notified by the Pdselear Regulatory Conmission Region IV on April 15, 1986, that allegations had b?on received by the PfC regarding Larsen Laboratories, Provo, Utah. On April.17, 1986, the' alleger was contacted by the Bureau of Radiation Control. Following information received from the alleger, the Bureau determined on April 18 and 21, 1986 that radioactive waste was stored by the licensee on a truck parked at Parish Chemical Conpany, Orem, Utah and that the truck and soil honrath the 1 4 tru::k were contaminated with depleted uranium. Between April 25, 1986 and May 1,1986, attenets were made to contact a previous employee of the licensee in order to substantiate additional allegations. On May 7,1986, the Eureau of Radiation Control was notified by Utah County Public Safety officials that a burglary had occurred at the licensee's facility and that a Utah County Sheriff Deputy had detected radioactive materials in a vacant lot across the road from the licensee's facility. 1 SCCPE OF IWESTIGATION

investigate unauthorized storage of radioactive waste, unauthorized disposal of radioactive eaterials, and activities related to the licensee's possession, use and transfer of licensed radioactive material.

SLM ERY OF FACTS On April 18 and 21,1986, Bureau investigators determined that radioactive waste was stored by the licensee on a truck parked at Parish Chemical, Orem, Utah. Barrels containing waste were sangled. The highest level of uranium concentration in a barrel was determined to be 1532.0 pCi/g. A portion of the truck's wood bed and a soil sangle from beneath the truck were evaluated for-uranium -238 content. The uranium-238 concentration values for tre truck bed i and soil sanple were 2406.0 pC1/g and 85.0 pCi/g, respectively. l Ch May 7 and 12,1986, Bureau investigators conducted an investigation at the Larsen Laboratories process facility (Orem, Utah) and business address (Provo, I Utah). Sased upon an examination of procedJres and representative records, interviews of personnel, independent measurements and observations by the investigators, a nunber of apparent violations wars determined. Seventeen. (17) items of non-conpliance were identified. 1 1

,l.. CDCLUSION Larsen Laboratories possessed depleted uranits and processed the material under the authorization of Utah Radioactive Naterial License No. UT 2500183. The violations identified, show a lack of control over the licensed operations. It was determined that some of the more significant violations, as they related to radiation safety, were repeated violations identified by Nuclear Regulatory Commission inspections in November,1979 and August,1982. The nature and nueer of violations indicate a disregard by the licensee of Utah Radiation Control Regulations. DETAILS The following lists the individuals contacted during this investigation. Tnere were other individuals contacted during the investigation, but their input was not significant to the findings or their input was redJndant. John Larsen - Owner Larsen Laboratories Bret Downing - Previous employee, Larsen Laboratories Scott Carter - Detective, Utah Comty Sheriff's Office Dennis Harris - Deputy, Utah County Sheriff's Office W. Wesley ParitM - Owner, Parish Chemical Company Marvin P. HJnt - Analyst, EAL Corporation Following information from an alleger, the Bureau of Radiation Control determined on Aprir 18 and 21, 1986 that the licensee was storing radioactive waste on s' truck parked on the Parish Chemical Company property located in Orem, Utah. Samples from barrels of waste were evaluated and indicated the presence of uranium-238 as high as 1532.0 p i/g. A radiological survey of the truck and soil beneath the truck indicated that radioactive waste had leaked from the waste containers. The uraniten-238 concentration values for the truck bed and soil sample were 2406.0 pCi/g and 85.0 pCi/g,.respectively. A nueer of metal barrels were observed in various states of corrosion. In some cases, corrosion had caused holes in the natal barrels. The owner of the property stated that the truck had been brought to the location about two years previously. 01 April 18, 1986, the investigators performed a radiological survey at the r licensee's facility lccated at 2000 South 450 West, Orem, Utah (Gold Key L Storage Unit # 3). Access to the facility was not possible, as the unit was lockad and the licensee was unavailable. Daring the survey, a light yellow stain was noticed on the macadam surface in front of Unit # 3. iiurvey results indicated the presence 'of beta and gamma radiation at a level of greater than 9,000 tipm.

l- -4 Between April 25, 1986 and May 1,1986, attengts were made to contact a previous employee of the licensee so as to substantiate or clarify allegations. The allegations made on April 17,.1966 were not substantiated by the employee. On May 7,1986, The ikJreau was notified by Utah County Public. Safety officials that the licensee's facility had been burgled on or about May 1, 1996. The Bureau had not received notification from the licensee that a burglaey had occurred. Utah County Sheriff officials informed the ikJrsau that a DepJty had been asked by one of two indivickJals who were in the process of claening the ' licensee's facility, to survey where they had disposed of an orange / yellow substance in the vicinity of Gold Key Storage thit # 3. The Deputy's radiation survey instrument responded positively to the presence of radiation at the dump site. The Bureau investigators confirmed the disposal of radioactive materials in the vicinity of Gold Key Storage thit # 3 with radiation survey instruments. Bureau investigators contacted the licensee on May 7 and 12, 1986 to examine 'the activities conducted by the licensee. The examination was a review of radiation safety. principals, cocoliance with the Utah Radiation Control regulations, and compliance with the conditions of license W. UT 2500183. Based on the investigation results, certain activities of the licensee were l St conducted in full compliance with Bureau requirements. J e S e

I 29 1 oNOR CHEMICAL COMPAxY FINE REAGENT CMEMICALS July 12,1986 Utah Department of Realth Bureau'of Radiation Control Salt Lake City, Utah .} Pertaining to: License No. UT 1500113

Dear Sir:

Larsen Laboratories response to the Notice of Violations is as follows:

1. Admittance or denial and explanation for each listed vicia tion.

2. The steps which have been or vill be taken to correct each violation. 3. The corrective actions which vill be taken to avoid further violations. 4. The date when full compliance vill be achieved. Violation il 1. This violation has occured because se have been treated poorly with regards to being allowed to set up adequate facilities to comply vith commitments made to the regulatory bodies. Me purchased land in order to build a facility that vould be avoy from populated areas and that we could control out operations, and 'use our chemicals safely, vaste products, etc. But instead of getting permission t.o build, we were forced into a building moratorjun by the Utah County Realth Dept., due to human sewage problems that would be caused by two people working part-time (20 hrs./vk. app.). Athen we said we vould be glad to set up a holding tank and have 4 -8E -0 02 ~' 7~_ p.o. none f nacwovr==== au coor acu s- .. ~.. u.c

I i, e OR10x CHEMICAL COMPARY a FifwE REAGEN1 CHEMICALS -y-it pumped regularly like the other businesses in the area, they replied 'Ho* to our request. So, for three years we oo. have had to work out of a storage unit which we tried to. keep vithin regulations as best as possible. Some unauthori-sed materials have been deposited across the street in an adjacent field, and vill be cleaned up. .This was not regularly done because we have kept our ~ vaste esterials and vill be disposing of them shortly, as soon as we are instructed how to. Violation 12 This spot, as well as all the others vill be cleaned up with a shovel, and the dirt properly disposed of. It should be noted probably that there is such hysteria about radiation, and that 2 millitems/ hour, unless constantly - exposed for many weeks, vill not cause health problems to , anyone. This ' Roc Spot

• vill be adequately taken care of and removed.

Violation 13 .The truck vas stored in a fenced area ' locked, etc. r vith drues containing the vaste asterial. Again, we could have secured the truck and drums better if we were allowed to build a facility. Violation 14 The preparatory evaluation for the bicassay for uraniue content, we thought was fulfilled with the urineanalysis testing. We vill be glad to comply with other provisions such as personell pumps, if this is absolutely needed. ' Yiolation 15 1. Dosimeter badges vill be vorn for the 30-day period, and we are reasonably assured the results vill be negecive. But, again, we vill comply immediately. P.O.DOK7475 m, a i PROVO LffAM $4002 ewpasa.e AREA CODE (e0113tm oass=oma v ame

t CRiox CHEMICAL COMPARY ie rms acaatwr enemcat.s -3 2. My san was wry little exposed to the anterial, and vill not be working for ar, as he attends Barvard thniversity suaner school. Eis work was mostly with analyzing small amounts (3 gas. approx.) for the metallic content. Me is 18 years cid January 3, Violation 16 Letters vill be sent with the results of the urinana-lysis, together with the socisi security numbers, corres-ponding to the names of employees that had their urine tested. This vill be effective innediately. Violation 17. 1. Tubs are used to contain spills, and this vill continue to be the policy. 2. Personnel training vill be documented fran now on, as vell as on-the-fab training instructions, pr&cedural reviews, etc. The procedures of annufacturing, and safety compliances, vill be upgraded effective 30 days. 3. Instruments vill be calibrated semi-annually etfective immediately. 4. Change zoon facilities vill be welcomed providing we are allowed to build our facility on land purchased for our canpany. Violation 19 Me deny that anything but storage of vaste dirt and

• asterials was done on the truck.

I don 't knov vhat 'use' l of sacerials could have taken place on the truck. I would request that I might analyze a small staple of the sacerial in my lab at my home, with all asterials returned to vaste storage, properly taken care of. Violation 13 We vill comply with personnel lopel-type air samplers. P o. sox rays Pmovo utAm sacar ,,, a...e AREA CODE SOU 3rH033

• • • • • • • *wc m

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L l __ _ _. e 1 ORlOR CHEMICAL COMPAKY P8NE REACENT CMEldtCALs -4 l Violation 110 We vill comply with documentation of surveys for our facilities based on the NRC Cuidelines Manual. Mr vill, also, document smearable contamination of packing and not exceed 500 dpa/200 cm2. Violation (11 Shippers Certification !ct complete package specifications vill be on file for boxes used for the shipment of the product radioactive sacerial. Violation 112 Rysol Company has been applying for it's license with Albany, New rerk, and as of yesterday's investigating, they are still in application. Violation 113 Each room vill be sign posted. Violation /14 Containers vill be labeled. Violation /15 Weste water vill be boiled down and controlled. Violation 11C BOTICE TO EMPLOYEES WILL AE POSTED. Violation 117 the licensee vill report any burgularies, or attempts of thefts, or losses of radio-active saterial, immediately to the Bureau of Radiation. P.O. DOK rdfl w, a Pmove triAH 34e02 seseas'. AREA CODE 3043fy

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[ c-oxtort CHEMICAL COMPAKY .se -e e rmt etactwT curuscAt.s . l Part 2. Radio-active Disposal Plan Larsen Labs vill dispose of all vastes, contaminated soil, etc. within CD days, according to procedures recommended by eith the Bureau of Radiation, or a consultant. Part C. In Vivo Lung Bio-assay After calling Dr. Ray Lloyd of the University of Utah Health-Physics Radio-Biology Labs., and Belgeson Nuclest Services in Pleasanton, California, we have concluded that there are no services available in the State of Utah 'for lung bio-assays. The expense of flying personnel for lung bio-assays is not reasonable because in addition to the expense, the test sessures only gamma rays, which depleted uranium has been depleted of. Therefore, it 's results are n==~ctATE--= y. etAti (This information is based on the conversation with Dr. Lloyd.) Part D. Mty license should Not Be Revoked Larsen Laboraties has shown willingness to comply to all reasonable health reconnendations, but has been prevented from adequately complying because of local building scratfuss. We purchased land, thus shoving good intentions. Larsen Laboraties has been the only source of this important catalysis U. A. A. for the past 10 years The product is a weapon for the United States Army, and any disruption of it 's only supplier vill idle approximately 300 men dovn the production line. Believe me, t.'nis is true; as they_ vill be contacting the State of Utah in regards to our reduced production activity. Part E. Bearing Requested as of July 10, 1986 7l"lt6 tW7 \\ p o.o.nox urs petoyo utAg paar n.m....c AAEA OoDE 8093754033

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state or utAN jy (il DEPARTMENT OF HEALTH wonwaw-sawsterm aest e. su2&NNE oANDov M o M PM..EktouTtVE 04ECYDR nes July 30,1966 Larsen Laboratories ATTN: John P. Larsen 3E53 North Sherwood Drive Provo, Utah 84604 Re: Radioactive Material License te. UT 25001E3 Gentlemen: This refers to the Bureau of Radiation Control (BRC) investi-gation conoucted on April 18 and 21,1966 and May 7 ano 12,1966 at your facility in Orem, Utah and at 3253 North Sherwood Drive, Provo, U;ah. CLring the investigation,17 violations of BRC reQuirefhents were ioentifiec. On June 11, 1966, a Notice of Violation, Oroer and Oroer to Show Cause was oelivered to you. Your written response to the Notice of Violation, Oroer and Order to Show Cause was receiveo by the BRC within the specified 30 ony period. It was noted that, in your written response, you requested a hearing. Pursuant to the Utah Cooe Annotated 26-23-2, AN ltFORMAL tEARItG 15 SCtEDULED FOR AUGUST 25, 1966 AT 9:00 A.M. in the SRC offices located at 268 North 1460 West, Salt Lake City, Utah. The issues to be considered shall include: A. Whether your written response to the Notice of Violation, Droer and Croer to Show Cause adequately addresses the

issues, B.

Whether the Order should be sustained, C. mether the license of Larsen Laboratories should be suspended, pending corrective actions er revoked, and D.

• ether the penalty in the attached " Notice of Proposed imposition of Civil Penalty" should be imposed.

The n4ture and numer of violations identified maring the investigation are of siqpificant concern to the SRC. Collectively, the violations show a careless disregard by the licensee of Department of Health Requirements. Pursuant to Section 26-1-28.1, ERTIr1ED MAIL I RETtRN RECEIPT REOLESTED '/_c_i_,- I ~ 4 002

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o Larsen Laboratories kly 30, 1966 I Utah Code Annotated, 1953, as amendec, you are hereby issued the enclosed ibtice of Proposed inposition of Civil Penalty in the amour.t of Twenty Thousand, Two itandred Fifty, Dollars ($20,250). The penalty computations were arrived at by use of the " General Statement of Policy and Procedures for IRC Enforcement Actions," 10 CFR Part 2, Appendix C (1965) p@lished by the U.S. ficlear Rep.alatcry Conunission. YOU ARE REQUIED TD RESP 00 TO THIS LETTER and should fellow the instructions specified in the enclosed tetice when preparin0 your

tsponse.

Si cerely, W Larry F Anoerson, Director Bureau,of Radiation Control

Enclosure:

Notice of Proposed Imposition of Civil Penalty CERTIFIED WLIL RETURN RECEIPT REDISTED 1 1 i I i a

h 7 1 NOTICE OF PROPOSE 0 Df0SITION OF CIVIL PD&LTY Larsen Laboratories 3853 North Sherwood Drive License No. UT 2500183 Provo, Utah 84604 A Bureau of Radiation Control (BRC) investigation of activities authorized under BRC License No. UT 2500183 was concbeted at Laraon L.$ cratories on April 18 and 21, 1986 and May 7 and 12, 1986 at Orom, Utah and 3853 North 91erwood Drive, Provo, Utah. DJring the investigation,17 violations of Department of Health requirements were icentifiec. The proposed penalties have been arrived at by use of the " General Statement of Policy and Procedure for IRC Enforcement Actions," 10 CTR Part 2, Appendix C (1985) pWlished by the U.S. foclear Regulctory Commission. The authcrity fcr this action is Utah Cooe Annotateo, 1953, as amence::, Section 26-1-28.1. The particular violations ano the associateo proposed civil penalty are set forth below: 1. Regulation URC-24-130(1) requires a licensee to dispose of source material by transfer pursuant to URC-19-400. Contrary to these requirements, the licensee has dispesed of source mtterial in the vicinity of its facildies rather than by transfer pursuant to URC-19.400. This violation is of significant concern. The violation was icentified & ring previous N> clear Regulatory Commission inspections on Novencer 2,1979 and August 23, 1962 are has occurred despite proceWres inplemerited by the lice 1see. Civil Penalty - $2,500.tD. 2. RegJlation URC-24-040(1) requires, in part, that no licensee er registrant shall possess, use, or transfer sources of radiation in such a manner as to create in any unrestricted area racistion levels which, if an inoivioual were continuously present in the area, coulo result in the individual receiving a dose in excess of two millirems in any one hour. Contrary to this requirement, radioactive material was cetectec on May 7, 1986 in an unrestricted area in the vicinity of the licensee's facility such that if an individual were continuously present, a dose in excess of two millirems in any one hour may be received. Civil Penalty - $750.03.

l 1 3. Regulation URC-2A-12 (1) requires that licensed' materials stored in an unrestricted area shall be secured from mauthorized remeval from the place of storage. L Contrary to'this requirement, it was deterained on April 18, 1966 that the licensee stored source material on an open tnr.k in an unrestricted area such that the licensed materials were not securso from unauthorized removal. Civil Penalty - $2,500.00. 4 Regulation URC-24-OE5 requirts, in part, that each licensee shall make or cause to be made such surveys as may be necessary for the L licensee to establish compliance with these regulations. Pursuant to statements made in item 2 of letter received Decenber 16, 1963 by the IRC, the licensee committed to comply with the provisions of NRC Regulatory Guide 8.11, " Applications of Bioassay for uranium". Contrary to the above, the licensee failed to conduct a preparatory evaluation for non-transportable uranium in workers ano failed to conduct surveys at the required frequency. - Civil Penalty - $2,500.00. 5. URC-24-070 requires, in part, that each licensee shall sipply appropriate personnel monitoring equipment to individual employees. Furthermore, license Condition 15 requires that licensed material be used in acercance with statements,. representations and procedures contained in U.S. tRC license SUB-1436 as in effeet April 1,1964. n A. The " Operations Manual.'.. Larsen Laboratory" states that for 90 days, themoluminescent dosimeters will be used to evaluate potential external radiation exposure. B. Qaring interviews with Mr. John Larsen of t.arsen Laboratories, it was determined that Mr. Larsen's 16 year old son had worked at the laboratory. Regulation URC-24-035 limits exposures to minors. Contrary to the above, external radiation dosimetry was not proviced. Coincidentally, determination of raciation exposure to a minor could not be provided. Civil Penalty - $750.00. 6. URC-48440(1)(b) requires, in part, that radiation exposure data for an individual be regiorted to the individual in writing and including the name of the individual and the individual's social security ruber. 4 ) Contrary to the above,, urinalysis bioassay data reported.bly 9, 1985 was not identified by individual name or social security rueer.

• s Civil Penalty - $250.00.

7. License Condition 15 requires, in part, that licensed material be used in accordance with statements representations, and procedures contained in MC license, SUS-1436 as in effect April 1, 1984 License Condition le of NRC license SUS-1436 ruguired l licensed material to be used in accordance with statements, representations, and procedures contained in application seceived Nove eer 16, 1983 and letter received Dece e er 16, 1983. a. In item 20 of letter received Decereer 16, 1983, the licensee stateo that tubs would be used under all processes to catch any spillage of radioactive materials. Contrary to the above, the licensee's engineering controls failed since radioactive contarr.ination was ottected on the macadam surface in front of Gold Key Storage, Unit #3 at 2000 South 450 West, Orem, Utah on April 18, 1986. D. On page 12 of the " Operation Manual... Larsen Laboratory" semitted with application received leveeer 16,1983, the licensee stated, " Training and uposting of personnel training will be part of the radiation orientation program. In addition, on-the-job instructions, written instructions, anc procedural reviews will be provided and the training documented." Contrary to the above, as determined on May 7, 1986, the licensee failed to document personnel training. c. On page 10 of the " Operations Manual... Larsen Laboratory" sWmitted with application received November 16, 1983, the licensee stated that radiation survey instrument calibration would be performed at a frequency of semi-annually. Contrary to the above, between the period of October 8, 1982 to May 7,1936, the licensee failed to calibrate a Ludlum survey instrument model 3, S/N 24101. d. In item 18 of letter received Decereer 16, 1983, the licensee stated that change room facilities would be provided for eriployees. Contrary to the above, the licensee failed to provide change room facilities at 2000 South 450 West, Gold Key Storage, triit # 3, Orem, Utah for employees. Civil Penalty - $2,500.00. 3

v I l 8. URC-19-300 requires, in part, that a licensee confine his use and possession of licensed radioactive materials to the locations authorized in the license. Contrary to the above, licensed materials were used at Farish ^ Chemical Conpany,145 North Geneva Road, Orem, Utah on April 18, { 1986 and remain at that location. Contrary to the above, licensed materials were used at a residence located at 3853 North Sherwood Drive, Provo, Utah on May 12, 1986. Civil Penalty - $750.00, 9. License Condition 15 requires that licensed material be used in accordance with statements, representations and proceatres contained in U.S. tRC license SUB-14M, as in effect April 1, 1984.,0n page 9 of the " Operation Manual... Larsen Laboratcry," it states that radioactive particulate air sampling will be accomplished by the use of lapel type air samplers. Contrary to the above, personnel air sampling was not performed. Civil Penalty - $2,500.00.

10. License Condition 15 requires, in part, that licensed material be used in accordance with statements, representations and procedures contained in U.S. tRC license SUB-14% as in effect i

April 1, 1984. a. The "Larsen Laboratory Operation Manual" states on page 11 that for fixed or removable contamination, the limits as stated in PRC " Guidelines for Decontamination of Facilities and Equipment Prior to Release for unrestricted use or Termination of Licence for Byproduct Source or Special Nuclear Materials" will be used in performing surveys. b. The "Larsen Laboratory Operations Manual" on page 5 states that' prior to packaging for shipment, a survey will be taken smearable contamination and not to exceed 500 dpm/100 Contrary to the above, contamination surveys were not performed. Civil Penalty - $750.00.

11. URC-19-500(4) and Title 49 Code of Federal Regulations Part 173.415 requires, in part, that each shipper utilizing a DOT Specification 7A container is required to maintain on file, for at least one year after the latest shipment, a complete package certification. _

. Contrary to the above, a shippers certification was not available for the boxes used for the shipment of the product radioactive e material. ~ Civil. Penalty - $750.00. 1

12. Regulation LRC-19-400(2) requires, in part, that a licensee transfer radioactive antarial to any person authorized to receive such material pursuant to LRC-19 400(4).

Contrary to the above, the licensee transferred radioactive material to the Hysol Company, Olean, New York on May 2, 1986 (invoice # 3827486) without obtaining acceptable verification that Hysol Company was authorized to receive radioactive materials. Civil Penalty - $250.00.

13. Regulation. LRC-24-090(1)(g)(1) requires, in part, that each area or room'in which any radioactive material is used or stored in an amount exceeding 10 times the quantity of radioactive material specified in Appendix B shall be conspicuously posted with a sign or signs bearing the radiation caution synbol and the words:

CAUTION - RADI0 ACTIVE MATERIAL. Contrary to this requirement, on May 7,1986, Gold Key Storage Unit # 3 at 2000 South 450 West, Orem, Utah contained radioactive material without the required posting. Civil' Penalty - $250.00. 14 LRC-24-090(1)(h) requins in part, that containers of radioactive material shall bear a clearly visible label with the wording "CAUTICH - RADIOACTIVE MATERIAL". Contrary to the ab::ve, various process containers and waste storage containers located at 2000 South 450 West, Gold Key Storage, Unit # 3, Drem, Utah were not labeled. Contrary to the above, 23 ar. sorted crums containing radioactive waste material located at Parish LAemical Conpany,145 ftrth Geneva Reed, Orem, Utah were not labeled. Civil Penalty - $250.00.

15. URC-48-030(1)(c) nquires, in part, that all individuals working in or frequenting a restricted area shall be instructed in and instructed to observe, to the extent within the workers control, provisions of the Utah Radiation Control Regulations and license.

5- _____..___________-___.._______________m.______________m_ ____m_____.___m.m______.__m__m_ w

-l'. g,_ = 4 r Contrary to the above, an onployee of Larsen Laboratory disposed-of radioactive waste at an unauthorized location and in an-g i unauthorized manner in the vicinity of 2000 South 450 West,. Gold Key Storage Unit # 3, Orem, Utah on May 1, 1986. Civil P m alty - $2,500.00.

16. ' URC-48-020(3) requires that each licensee post, wherever

- individals work in or frequent a restricted ama, a copy of the fom, BRC-04, " Notice to Employees". Contrary to the above, form BRC-04.was not posted at XXID South 450 West, Gold Key Unit # 3, Orem, Utah on May 7,1995. Civil Penalty - $250.00.

17. RegulationLRC-24-180(2) m ouires, in part, that each licensee shall report immediately and confirm promptly by letter to the Utah Department of Health, Bureau of Radiation Control, tne actual or attempted theft or loss as soon as such theft or loss

- becomes known to the licensee of any quantity of radioactive material. Contrary to this requirement, the licensee failed to report to the Bureau of Radiation Control a burglary at 2000 South 450 West, Gold Key Storage Unit # 3, Orem, Utah. The Bursau discovered on May 7 1966 that the licensee had reported a burglary on May 1,1986 to a. local law enforcement agency without reporting said burglary to the Bureau. Civil Penalty - $250.00. By August 25, 1986, the licensee is required to respond by a written answer addressed to the Director Bureau of Radiation Control) P.O. Box 16700, Salt Lake City, Utah 84116-0700. Such answer may; (1 somit or deny the violations listed in this Notice in whole or in part, (2)- demonstrate extenuating circumstances, (M show error in this Notice, or (4) show othat reasons why the penalty sLould not be imposed. The issue of imposition of civil penalties will be one of the issues to be' heard at the informal hearing sches.: led on August 25, 1986 at 9:00 a.m. in the BRC office located at 288 North 1460 West, Salt Lake City, Utah. r M* J. . Should Larsen Laboratories fail to answer within the time specified, the '( Executive Director of the Department of Health will issue an order irnposing the civil penalty in the amount proposed above. FOR TE,.EJREAU DE-4EEGATION CONTRCL, ew Larry F. rson, Director Bureau # Radiation Control Dated at Sg/ ay of July 1986 t Lake City Utah this 3e d e.. _..

1h5PECT10h AEPORT ( I_ LICEh5EE: Larsen Laboratories, Inc. UT 2500183 3853 hurth Sherwoco Drive Provo, Utan 64604 t DATE: Octooer 20, 1926 L OCAT!0ft: Licensee's f acility at Gold Key Storage Unit No. 3 Orem, utan, ano at Licensee's personal property near Geneva Steel slag pile in Lincon, Lttah REASON FOR To ceterniine tne licensee's status of compliance I riSPECTI0h: to hetice of violation, Droer, ano Orcer to Show Cause catec June 10, 1966, and connittents mace in an informal nearing neld on Septemoer 5,1986. 62 4d ^[MIt Ih5DECTORE: traig k. Jones g' td O / Arnoic ;. Peart T h5PECT10h.5JHrMY: Tnis was an announceo inspection. Tne perpese of this inspection was to cetermine tne licensee's status of compliance with a hetice of Violatior., Oroer enc Orcer to Show Cause cated Jur.e 10,1v66, as well as witr, commitments mace in an informal hearing on Septencer 5, 1986. Tne status of each item of noncompliance is accressed in tne same sequence as tne hetice of Violation. 1. Despite the licensee's cleanup efforts, soil contamina-tion remains in tne vicinity of Golo My Storage tkiit ho. 3. R!dioactive materials continue to contaminate the aspnalt surface in front of unit ho. 3. Measurements were maoe by use of a tuolum Mocel 2 ratemeter, S/N 3976, with a Ludium Mocel 44-9 pancake GM probe, 5/h PH6074. 2. Due to the contamination on the aspnalt surf ace, an inoivicual may receive a cose in excess of two millirems-in any one. hour. The measurement was mace by use of a Keithley mocel 36100 ion enamoer, S/N 11921. 3. The licensee continues to violate Inis regulation by moving the radioactive material from Parisn Cnemical to an open field; owneo ey the licensee, in Linoon, Utan. Bureau inspectors observed that soil contamination remains at Parish Chemical. 4. The licensee stated that workers hac submittee a urine sample for analysis. The results of this bioassay were requested Dy the inspector and Ine licensee stated that. e ne woule send the result to tne bureau of Raciation Control (BRC). 9 / ,_2 4 o D A t) ?

11. ine licensee stateo inat ne woulo comply witn the Depart-re.ent of Transportation rega ations pertaining to shipment cf rauicective materials as limiteo quantiti,es. 12. int licensee stated that Hysol Company had receiveo a specific license to receive anc pos,sess source material. A copy of. this license was requesteo by the Bureau inspectors. 13. A temporary storage building of wood construction was coservec to contain' radioactive material. The ouilcing

• as in an open fielo in Lindon, utan anc was found with-4 out the requireo posting.

14 Drocess containers anc waste containers were observed t'o se storeo on property in Lincon, utan witnout the recuireo posting. 15. Tnis was not inspected since the employee was not contacteo ano interviewed. lo. ine temporary frane structure and Golo Key Storage Unit

.o. 3 cio not contain the requireo form br.C-04.

An inspector left approximately four copies of form BRC-04 .itn tne licensee. 17. Inis was not inspecteo. Tne licensee indicateo that new facilities were under consideration . at Sumner Construction Company. Bureau inspectors informed the licensee tnat a move to new facilities must first oc approveo ey tne BRC by license amenoment. 1 J i l l l 1'

l-1 1,. 1. N3>-le '87 88:04 10: TEL @ upt% ped ) UTAH OEPARTMENT OF HEALTH $UR[AU OF RA01t, TION CONTROL a .ar In The Matter of Larsen Laboratories License No. UT 2500183 3453 North Sherh9ed Drive Provo Utah 84604 DRDtt $USPEWDING LICEN5! ([FFECTIVE INMfDI ATfLY1 aWD ORDER IMP 051NG CIVit MONET&t? PENaLTits I. Larsen Laboratories. 3,853-North Sherwood Drive. Provo, Utah $4604 *(the ' itensee*) is the holder of a specific license, category 2b, granted by the thmea u af andiation Contrci (the 'Sureau') of the Utah. Department of Mea'ith. e Radioactive Material License No. UT 2500183 was issued on May 13, 1985, as a replacement for U:$ Nuclear Regulatory Connission license No. $U$-1436 and is det to expire on December 31, 1988. The. license authorites the licenses to transhr. receive, possess, and use source asterial (depitted vranium) for* manufacture of a reagent chestcel. ~ On April 18 and 21, 1986, and May 1 and 12,1986, luteau representatives. conducted invest 1 ations.cf the licensees activities and fa9111ty at.'Orsa, 9 titc h. As s' result of the invest 19ations, violations of Department of HealO trulations were identified. A written Notice of Violation. Order, and*0rder N, -- IC_. 4.-88-002 a

i to>-19 'Erl W:05 ID: 1E. @ 8eB2 PEG Mr to Show Cause (dated June 10. 1986) was seved upon the 1,1 censes on June 11, 1986. 'by lureau rep'resentatives. The licensee ' response wet received on July )

11. 1986, by letter dated July 12, 1986.

In accordance with t'he provisions of the Utah Code Annotatec,1953. as amended, the licensee requested an informal 4 hearing. The nature attd number of violations identified during the investiga1,lon were* of significant concern to the Sureau. Collectively'y, the violations s'howd a i careless, disregard by the licensee of Department of Health requirements. ~ Pursuant to Section 26-1-28.1, Utah Code Annotated. 1953, as amended, the 31censee was servee with a Notice of Propose'd Imposition of Civil Penalties try ~ letter detec July 30. 1186. 'y r.r. inferrtei hearing was held on September 5,1986..to consider whether or not-the licensee's written response.to the Wotice of Violation. Order, and Order, to Show Cause was adecuate; whether or not the Order. should be susts'ined; wnether or not the license should be s'uspended pending corrective actions or revoked; an'd whether or not the, proposed civil penalty should be imposed. The licensee requested thirty (30) days to submit a compliance program., Just prior to the end of the thirty (30) days an additional thirty (30) days were granted at the licenste's request. That additional period has expired and the licenset has not submitted the response. 't e r consideration of the answers received, the statements of fact or L explanations, and arguments for remission or mitigation of the proposed civil 2-i i

~ to>-te 's7 as:ss 3D: TEL ND: aget pga j s ,enalties, the results of the inf ormal hearing are as follows. The Directer, h_tureau of' Radiation Control, has concluded that the license should be suspended, pending corrective actions, and that a monetary civil penalty should be imposed. Tne final assessment of the amount ' of civil penalty Wes reducad after consideration of information provided by the licentee. It should be noted that these determinations are based, in part, on an ihapection ' on October 20, 1986, by Sureau personnei, which indicated that any cf the violations remain ur. corrected. The violations included a f ailure to properly. decontaminate' the Gold Key Storage facility, unauthorized reiocation of radioactiv'e wastes f rom Parish Chemical a'nd Gold Key Storage to property, in t.inden; 'Jtah. f ailure to decontaminate the Parish Chemical site. and fai)tre , to meet posting and labeling requirements. .t v. g In view of the f oregoing, pursuant to,9RC-19-250 and section 26-1-28.1, titch Code Annotated,1953, as amended. IT 15 MCittf OdDERED THAT: A. Effective immediately,.the licensee shall not receive or use source. material, except as ' permitted in Condition 8 'below; 8. Ef fective immediately, the licensee shall place all source material in its passession in locked storage or transfer such meterial to a. person authorized to receive toch material; 9 L L_____--_-_____________ j

e NCM-19 '97 9B:06 ID: TEL NO 3991 pg5 ,. DL' i C. The license suspension shall remain in effect until the f ollowing corrective

• actions. have been completed to the satisf action of the tureau:

1. Dispose of' all radioactive waste at a licensed low level radioactive waste disposal facility. The licensee avst also- , submit the waste sisposal plan as required by Section !Y. 6. items (1) through (4) of Order dated June 10. 1986: '2. Nove to production facilities that have been approved through license amendment procedures; i 3. Decontaminate 6cid Key Storage Unit #3 to Bureau, of Radiation G Centrol limits for unrestricted use of, facilities and equipment; 4. Cleanup contaminated soil and aspaalt in the vicinity of Gold Key Storage Unit #3, Drem, Utah: 5. Cleanup contaminated soil at Parish Chemical Company, Dree, Utah: 6. 0btain a qualified Radiation protection Officer to be approved l by the Bureau through a license amendment procedure; and 4 0. The licensee shall pay civil penalties in the amount of TMrteen Thousand Dollars ($13,000.00) within Lh.irig (30) days of the date of 4 1 i

NCM-10 '87 9B:07 ID: TEL @ IG21 P96 p this Droer, by check, draft, or, money order payable to the Utah Sureau of Radiation Control and mailed ' to the 01 rector. Screau of j Radiation Control, P.O. Box 16690. Salt Lake City, Utah 84116-0690 i ba' sed on the following assessment: Nott'ce of Violation (datec June 20, 1986) Assessment VNistions1&2 5 2,500 Violations.3 & 8 2,500 . Violation i 750 Violation 5 750 Violations 7 L 1$ 2.500 Violation 9 2,500 Violations 10 & 11 150 Violations 6, 12. 13 . 150.

14. 16. & 17 TOTAL

'513,000 V., The licenser may

• within m (10) days of the cate of this Order, request a f,ormal hearing.- A reguest for a hearing iha,11 be addressed to the C1, rector, lureau of Radiation Control, P.O.

Box 16690, Salt Lake City, Utah 84116-0690. If a hearing is.requeste6, the Sureau will designate the time and place of hearing. Any answer or request for a hearing shall not stay the isenediate ef festiveness of Section IV. of this 6r6er. In the. event the licensee requests a hearing as provided above, the issuts to be considered at such hearing shall be: 9 ~

u. ICJ-19 'Er? 88:Er? ID: TEL 90: seel PErl ~ l l ,. VL' g A. Whether or het the licenset was in Violation of the Department of y Health reevirements as - set forth th the Notice of violatton, Orser, and Order to show Cause dated June 10. 1986, and Wnether or not, on the. basis of such violations, this Order shool, b 8. sustained. C. Whedher or not the penalty kssessment is appropriate. FOR THE OCPARTMENT OF NEalTH pdp Suzana( Dancey, M.D., M.P.H. Executive Director ~ ) ..a ~ Cated at Salt take' City. Utah j m,. r .sy o, no,e,.er;,,.. j ] 6 e G L +

'~ cp.ge. 87 asses ID: TEL HD ugsi peg u, .( ( b settlement Agreement O-This settlement agreement is between Jaba P. Larsen, dba Larsea Laboratorica (hereinaf ter 'Larsen Laboratories') and the Utah state Department of sealth (hereinaf ter ' Department") onacerning i Larsen T,2boratories Radioactive Material License No. Ut 2500183 L ..and operations and activities associated with that liceasp. . Bis agreement resolves the Notice of V141stion, Order and Order to show Cause, to Larsen Laboratories from the Departaset, dated

• June 10, 1946 and the Order suspending License anA Order Imposing Civil Monetary Penalties to Larsen Laboratories from the Department dated November 5, 1986.

This agreement constitutes a settlement of all violations of Utah laws and regulations alleged 'in these a6tices and orders. It does not in any way relieve-Larsen Laboratories from agr future obligation imposed 'under Utah law or under the Utah Radiation Control Regulations. 1. By no'1 ster than April 25 1987: a. Larsen Laboratories aball dispose of all its radiosotive waste at a licensed lor level radionotive waste disposal facility. Larsen Laboratories aball motify the Department prior. to any shipment to allow Department personnel to inspect the vaste containers prior to shigenent to insure compliance with O..,., , regulations.of the receivlag state. , b. Larsen Laboratories shall decontaminate Gold Rey storage Unit 03, Oren, Utah, to Department limits for marestricted use of facilities and equi 3mnent and cleanup contaminated asphalt in the '- vicinity of Gold Eey storage Unit 63. The Department agrees to cooperate with Larsen Laboratories in att ing to find a solution for Larsen Laboratories to clean asphalt without having it removed. If the asphalt cannot be cleaned to acceptable standards witboot removal,.Larsen Laboratories aball remove the asphalt (area approximately,5 ft by 5 ft).. ^ _% 2. The Department agrees to reinstate Radioactl7: Material License pe. UT 1500183 opon completion by. Larsen Laboratories of the follerings The requirements, in peregraph 1 of this agreemes. a. ( section 17. R. items (1) through.(posal plan as requirled by b. Submittal of a waste dis4) of the Order dated Jane 10, 1966. [ Use of production facilities that here been approve:S rong license amendment procedures. 4 Obtaining a qualified Radiation Protection Officer to e ed be appToved by the Department through a liccase amenhet ,Dfu procedure. ll _ L; 2. 4 O O P

, NOV-19 'B7 08:09 ID: TEL ND: 2001 P99 t I ( i 3. The Department' acknowledges that oortaminat'ed soil' ati Parish' chemical Company, Oren, Utah, and in the vicinity. of Gold Key ~, Storage Unit 03, has been cleaned to Department requirements, w l 4. 'Larsen Laboratories egrees, in settlement of these matters, to pay a civil penalty of thirteen thousand dollars (813,000). under the provisions of Utah Code Annotated 26-1-28.1,.eight thousand of which shall be suspended provided that Larsen 1 Laboratories complies vith the requirements. of' paragraph.1 - of this agreement. The remaining' five thousand dollars shall be due and able in two installments, 82500 within 20 e s of the ,date'of s agreement, and 92500 within 60 days of th date of this agreenFat, submission to the Director, Bureas of Radiation Control P.O. Dos 16690, Salt Lake City, Utah, 84116, 0690, of checks made.out to the State of Utah. If Larsen Laboratories f ails to comply with the provisions of paragra 1 of this agreement, the eight thousand dollar suspended ye ty. aball become. due and payable within thirty days of receiving a l demand from the Department for payment. Both the 85000 and,98000 penalty amounts when due and payable are subject to the collection procedure outlined in Utah Code Annotated Section 26 1-28.1(5). Agreed to this I I day of - ^'_T f 1 2 L Y87 ~ / &J J P. Larsen N'. Laboratiorjes a - - a //- !h Busaggf Dandoy, L D., P. E'. EsecRive Director, Department of Realth O g ( [$g S e 0 y O e e

y ~ ~ ~ M,~ h ay,, - e es.. p NUCLEAR REGULATORY COMMIS880N 1-neo.ow ev sti avans PLAZA ontvt. suf7E tese -( \\,,,,, - Anumeron.vuxAs mit DCT 301997 MEMORANDUM FOR: File FROM: Mark Emerson

SUBJECT:

RECEIPT OF ALLEGATION REGARDING JOHN LARSON

REFERENCE:

4-87-A-082 On October 28, 1987 Julius Haes of the Wyoming Health Department contacted Region IV and advised an alleger had contacted him and stated that an individual by the name of John Larson may be an unauthorized user of radioactive material. On October 29,1987, I telephonically interviewed the alleger and he stated that John Larson had rented space in the allegers mini warehouse beginning in the month of January 1987. Larson initially told the alleger that he would be processing chemicals within rented space. The alleger said that during the beginning of October 1987 he visited Larson's space and witnessed a five gallon black metal container with a radiation warning sign affixed to it. The only c :upant of the space at that time was an unidentified Brigham Young University student who told the alleger that the conteiner stored "U238 which was a spent material from nuclear reactors". The student also told the alleger that the odor which permeated the air was that of " benzine". After the alleger interviewed the BYU student, he contacted Larson who also stated that the radioactive material was "U238" and said that the material was l waste from nuclear reactors. Larson also showed the alleger shipping labels which were reportedly used to transport the radioactive material to the warehouse. Larson told the alleger that the chemical process ongoing at the warehouse facility involved the creation of a " catalyst" which was subsequerstly shipped to Honeywell Corporation. Larson explained that this " catalyst" was used in plastic hardening process in the construction of munitions at Honeywell. Larson also 5%ed the alleger shipping tickets which Larson maintained showed transport of the " catalyst" to Honeywell and radioactive waste material to a Washington State storage facility. Larson reportedly showed the alleger documents containing a dosimeter readings which Larson maintained were " required by the NRC". The alleger informed j Larson that he intended to inform the state department of health of the existence of Larson's laboratory. Larson advised the alleger that he L maintainedsuchsmallquantitiesoftheradioactivematerialthathe(Larson) was exempt from certain OSHA and other regulatory agencies. Larson advised he represented two organizations. Wrangler Labs, P. O. Box 536, Provo, UT 84602, telephone numbers 801 226-6822 and 801 224-0505 and Orion Chemical, 3852 N. Sherwood Drive, Provo, UT, 84602. 12. 7....... ~ 4 002 E--_______

4; Memo to file. i The alleger advised he will not renew Larson's' rental agreement after the next

month and requested that an investigation by the appropriate agencies to eliminate the possibility of a nuclear hazard at his warehouse facility, cc:

GSanborn WFisher JEverett~ RDoda l I l 4

L, l! '7 O t4 W p General License 'b Docket: 99990004/87-04 EA: 87-223 Wrangler Labs c/o Larsen Labs, Inc. ATTN: John P. Larsen, President 3853 North Sherwood Road Provo, Utah 84604 Gentlemen: This refers to the special, announced radiation safety inspection conducted by 1 Mr. D. 8. Spitzberg of this office on November 4-5, 1987, of the activities authorized by the General License provisions of 10 CFR 40.22, and to the discussion of our findings held by the NRC inspector with Mr. John Larsen at i the conclusion of the inspection. The enclosed NRC Inspection Report 99990004/87-04 documents this inspection. The inspection was conducted to review allegations of unsafe practices at your Evanston, Wyoming facility. The inspection was an examination of the activities conducted under the general license as they relate to radiation safety and to compliance with the Connission's rules and regulations. The-inspection consisted of selective examinations of procedures and representative records, interviews of personnel, independent ocasurements, and observations by the NRC inspector. 'during this inspection, certain of your activities appeared to be in violation of NRC requirements. We are releasing tnis report at this time for your information and you are encouraged to rev'iew our findings and take corrective action as you believe appropriate. You will be notified by separate correspondence of our decision regarding enforcement action based on the findings of this inspection. No written response is required at this time. This letter also confirms the teler, hone conversation between Nr. John P. Larsen and Mr..R. J. Everett of my staff on November 10, 1987, concerning your commitments to take certain actions including the cessation of uranium processing and our request to conduct an enforcement conference to address the findings of the NRC inspection referenced above and your response to these findings. As agreed, the enforcement conference will be held at the Federal Building, 125 5. State Street, Salt Lake City, Utah, Room 3425 on December 2, 1987, at 1:00 p.m. RIV:NM I . C:NMEP A0 EO hRLBangart DB5pitzberg/tw e tt WLFisher MEEmerson DAPcwers n In /87 it /t's187 u /D/87 d /Q/87 K/tN87 n /$W87 \\ /3 4'-88-002 1-- N-B'"^/f ' ~~

1 l- ) 'l Wrangler Labs 1 Should you have any questions concerr.ing this letter, we will'be pleased to discuss them with you. Sincerely, I c-

• * ~ 7'm SY:

l William L Fisher, Chief Nuclear Materials and Emergency Preparedness Branch i

Enclosures:

1. Appendix A - NRC Inspection Report 99990004/87-04 l 2. Appendix B.- Source Material Receipt and Transfer cc w/ enclosures: Utah Radiation Control Program Director Wyoming Radiation control Program Director bec: DMB ' Original (IE-07)

• L5hea, RM/ALF (AR-2015)

RM etin

• Inspector RLBangart "NMEPB REHall
• MIS System WLFisher "RIV Files (2)

DAPowers

• RSTS Operator.

JLieberman RJEverett RJDoda MEEmerson

• w/766 l

1 S -T i

r l I APPENDIX A

I i

U.S. NUCLEAR REGULATORY COMMISSION i REGION IV -l a NRC Inspection Report: 99990004/87-04 License: General Docket: 99990004 Licensee: Wrangler Labs Unit 121 Top of Sage Industrial Park Evanston, WY 82903 Inspection At: Evanston, Wyoming Inspection Conducted: November 4-5, 1987 Inspector: / f&t.2e I 8. //k3 u 7 V D. B//5pitzberg,Jepior RadiatioW5peqfalist Date Nucifrar Materials Inspection Section Accompanied By: J. E. Haes, Jr., Chief, Radiological Health Services State of Wyoming 3!87 Approved: $14) // R.J//Everett, Chief,fucleatMaterials Date-Inspection Secti6n Inspection Summary Inspection Conducted November 4-5, 1987 (Report 99990004/87-04) Areas Inspected: Special, announced inspection of activities corducted under general license provisions of 10 CFR 40.22, and review of an allegation of unauthorized and unsafe use of licensed material (case 4-87-A-082). Included in the inspection was a review of radiation protection practices, selective examinations of procedures and representative records, interviews of personnel, independent measurements, and observations by the NRC inspector. O e*

l 2 Results: Within the areas inspected, two apparent violations were identified for possession at one time of more than the general license limit of 15 pounds of source material (Section 6.a) and for possession of quantities of licensed material which requires a specific license without having been issued a spe:ific license (Section 6.a). These violations appeared to have occurred on several occasions since March 1987. The allegation of an unauthorized user was substantiated in that the us'r was found not to be authorized to possess and e use source material in excess of general license quantities. The alleged use of source material in an unsafe manner was substantiated and the investigation into this allegation did result in identifying the apparent violations referenced above and two open item; referenced in Sections 6.d and 7. a o e% e#

3 i DETAILS ~ 1. Persons Contacted " John P. Larsen, President, Wrangler Labs A11eger

• Present during the_ exit briefing.

2. Reason for Special Inspection On October 28, 1987, Region IV was notified by de Wyoming Health Department of an allegation it had received concerning activities which were being conducted at a mini-warehouse located near Evanston, Wyoming. The allegation questioned the authorized use of licensed material at that location which reportedly involved the chemical processing of uranium-238 into a chemical catalyst product. The allegation also questioned if the user was operating in a safe manner according to NRC requirements. The user had stated that he represented two organizations: Wrangler Labs, Provo, Utah; and Orion Chemical, Provo, Utah. The NRC inspector was dispatched to inspect activities at the site. He was accompanied by a representative of the Wyoming Health Department. 3. 8sckground The company president, who was the alleged unauthorized user, had over the years been involved in the processing of depleted uranium (DU) to the product uranyl acetyl acetate (UAA) in the state of Utah. He had previously worked under a general license pursuant to 10 CFR 40.22 under the name of Orion Chemical Company. The licensee's facility was inspected by the NRC in August 1982, at which time four violations of NRC requirements were identified. Included in these were a violation for possession of more than the general license limit of 15 pounds of source material at one time during August 1982, and a violation concerning contamination found outside the facility resulting from unauthorized disposal. Following the August 1982 inspection, the NRC issued an Order to Show Cause and Order' Temporarily Suspending License to Orion Chemical on September 3, 1982. The Order was rescinded on October 25, 1982, after the licensee had implemented suitable corrective action, and following the

eptember 1982 reinspection of the facility. On December 15, 1982, the NRC assessed Orion Chemical Company a civil penalty for the violations identified during the August 1982 inspection.

In May 1982, Orion Chemical had applied for a specific license to conduct the same activities it had previously conducted under the general license. This license (508-1436) was issued in December 1983 and was reissued under a different name, Larsen Laboratories, on May 13, 1985, by the state of Utah following its becoming an agreemtnt state. According to information received from the State of Utah, Larsen Laboratories was investigated by

4 1 the State Bureau of Radiation Control during the period April through May 1986 with several violations identified. A Notice of Violation, Order, and Order to Show Cause was issued by the state in June 1986. According to the Order, the violations collectively showed a " careless i disregard by the licensee of Department of Health requirements." On l July 30, 1986, the state issued a Proposed Imposition of Civil Penalties l to Larsen Laboratories. Following a September 1986 hearing, the state issued a November 5, 1986, order suspending the license and imposing civil penalties. This followed the Octobar 1966 inspection by the state, which showed many of the violations to be uncorrected. l Note: Under the general license provisions of 10 CFR 40.22, a licensee is exempt from the requirements of 10 CFR Part 19 " Notices, Instructions, and Reports to Workers; Inspections"; and 10 CFR Part 20 " Standards for Protection Against Radiation." 4. Process Description The NRC inspector discussed with the company president the activities he had been conducting in Wyoming and reviewed a pamphlet containing the process description. This description had apparently been submitted in support of previous specific licenses. In simplified form, the licensee i had been receiving frce a supplier DU metal slugs, which would be dissolved into solution using nitric acid, followed by the precipitation of UAA using 2,4 pentanedione. To the precipitate would be added benzene to promote recrystallization of UAA. The product would then be filtered, dried, ground, and packaged. The licensee had been processing lots of 15 pounds or less of DU, as this was the possession limit of the general license. UAA product contained generally between 45 and 48 percent DU by weight. 5. Facility Description The NRC inspector toured the licensee's facility on November 4,1987. The licensee had leased the Quorisehtut type building in January 1987 and had i received the first shipment of DU from the supplier in March 1987. The I approximate 30 X 40 foot area comprising the licensee's facility appeared ordtriy on the day of the inspection with no active processing ongoing. The facility was equipped with stainless steel work benches, catch basins, I and storage cases. There was no plumbing to the facility. The NRC inspector observed two SS gallon drums of benzene, one each of 2,4 pentanedione and nitric acid, and a smaller container of sulfuric acid. There were also several containers of used process chemicals bearing dissolved uranium. Two contaminated waste barrels were observed, each containing some contaminated dry trash as determined by radiation survey. Process equipment observed included numerous stainless steel buckets, hot plates, three micrcwave ovens used to dry the product, and a blender used topulverize the product. Scae rolls of linoleum had been placed on the J por; however, most of the floor area was concrete. Despite descriptions in the licer:see's pamphlet of ventilation hoods, HEPA filters, and provisions for air sampling, which may have been utilized in

e 5 y 'the licensee's Utah operations, the NRC inspector found little in the way of. engineering controls to control potential airborne radioactivity. Processing had been conducted in open air using only natural ventilation, except for the nitration step, which did have a crude suction fan and wet scrubber to remove acid fumes and oxides of nitrogen. 6. Documentation Reviewed a. Receipt / Transfer /Shippino Records The NRC inspector reviewed records of licensed material receipt and transfer since the Wyoming operations began in January 1987 (see Appendix B). According to these records, the licensee did not receive more than the 150-pound general license limit per calendar year of source material. Records indicated, however, that during the periods March 27 through April 7; April 21-30; June 1; June 26-27; August 6-7; and September 23 through November 5, 1987, the licensee was in possession of more than the 15 pounds of source material at one time authorized by the general license provisions of 10 CFR 40 and without a specific license. These findings were identified as apparent violations of 10 CFR 40.3 and 40.22(a). The company president indicated that some of this overage was from residual product recovered from waste material from his Utah operations. Licensee records of material receipt, transfer, and disposal were found to have been maintained in accordance with 10 CFR 40.61. b. Waste Disposal The NRC inspector reviewed records showing the May 29, 1987, shipment of 17 drums (127 fts) of dry waste to the University of Utah for disposal by burial at a licensed waste burial facility. Most of the waste was from the previous Utah operations and was disposed of under State of Utah Order dated November 5, 1986. As noted earlier, under the provisions of the general license, the licensee is exempt from the waste disposal requirements of 10 CFR 20.301.311. c. Licensee Surveys / Instrumentation The NRC inspector reviewed available smear surveys of alpha contamination performed by the licensee following cleanup from each process batch. The surveys were made using an alpha scintillation detector and revealed no levels above the NRC recommended guidelines of 1000 dom /100 cm. There was a total of 36 individual smear survey 2 results recorded since the Wyoming operations began in January 1987. The licensee was also in possession of two portable beta gamma survey instruments; however, any results of use of these instruments had not been recorded. Certificates showed that licensee instruments had been calibreted by the manufacturer in late 1986. The licensee also had a high-volume and a breathing zone air sampler; however, no calibration data or measurement results from these instruments were available for review.

4 6 ( d. Users / Personnel Dosimetry The NRC inspector reviewed the available records pertaining to personnel exposures, which had been maintained largely as a result of previous operations in Utah. According to these records, feur individuals had been involved in some manner in licensed activities. Some of these were college students. Because of the general license provisions of 10 CFR 40.22, there are no requirements for l identification of, or training and qualifications of users. But j since the user exceeded the general licens2 quantities of source j material without a specific license as noted in Section 6.a he was found to be unauthorized to conduct such activities. Three individuals had been issued themoluminescent dosimeters from September 1986 to the time of the inspection, with external exposures all minimal. A whole body count perfomed on the company president J in July 1986 was below the 9 nCi action level of Regulatory Guide 8.22, " Bioassay at Uranium Mills. Urine bioassays on three individuals were submitted to a contractor laboratory in June 1985, June 1986, and February 1987. All results were below the Regulatory Guide 8.22 action levels except for,one individual, whose February 1987 sample measured 10815 pg/l uranium. The individual was q resampled in March 1987 with the result <5 pg/1. The higher sample ~ could indicate excessive internal exposure and inadequate airborne uranium confinement. Also there was no data to show how long after a potential intake the sample was obtained. This finding is considered an open item pending further urine analysis of the individual for uranium and albuminuria. (0 pen Ites 99990004/8704-01) 7. Independent Surveys The NRC inspector performed random radiation surveys for direct alpha, beta gamma, and removable alpha contamination both inside and outside the licensee's facility. Of 14 smear surveys, all were less then 1/3 of the NRC guidelines for removable alpha contamination for unrestricted areas. Direct alpha surveys showed measurable surface contamination above background throughout the facility. Three areas surveyed were above the r NRC guidelines for average surface contamination of 5000 dpa/100 ca,.and one of these was neore than twice the guideline for maximum surface contamination of 15,000 dpm/100 ca. This finding is considered an open r ites pending proper licensee removal of this contamination (south catch basin support) (0 pen Item 99990004/8704-02). Beta gamma surveys using a pancake probe and count-rate meter also showed low level surface contamination throughout the facility. Evidence of loose contamination was found by surveying the air filter of a portable heater - 1800 cpm (background 100 cpe), and dust / dirt floor sweepings - 1800 cpm. No evidence of contamination was found outside of the facility. e% f e L lL-

_-_~ ,1 7 1 8. Exit Briefino The NRC inspector met with the company president at the conclusion of the

inspection to discuss the findings. The president was informed that Region IV management would review the findings before taking enforcement action, and that a decision would be'made concerning the appropriateness of continuing such openstions under the regulatory exemptions provided by the general license.

M e 9

4 APPENDIX 8 SOURCE MATERIAL RECEIPT AND TRANSFER Source Material Source Haterial Apparent Net Balance Date-Received (lbs) Shipped (1bs) Onhand (1b) 03/03/87 15 15.00 03/24/87 7.62 7.38 22.38 G 03/27/87 15

• i

- 03/29/87 7.06 15.32 @ 04/07/87 6.55 8.77 04/18/87 7.92 0.85 15.85 @ d2 04/21/87 15 04/30/87 8.80 f.# 7.05 p 13.69 16.69 S d 3 06/01/87 06/02/87 15 15.00 06/13/87-7.80 7.20 22.20 @ #4 06/26/87 15 06/27/87 11.00 ,p. 11.20 12.71 # 12.71 07/12/87 07/17/87 15 15.00 08/06/87 15 8.10 2;.90 @ +f 16.77 p. s 5.13 08/07/87 13.65 13.65 09/03/87 15.00 09/09/87 lb 30.00 6 09/23/87 '15 10.14 _19.86 @

1. 6 09/30/87 b

i 10/19/87 J 12.79 22.07 Total .30 147.60 .___-._______-__-_____-.___-___A-

In Reply Refer To: Docket: 99990004/8704/ Cal 87-24 General License: Wrangler Labs, Evanston, Wyoming EA 87-223 Larsen f. abs, Incorporated ATTN: John P. Larsen, President 3853 North Sherwood Drive Provo, Utah 84604

SUBJECT:

CONFIRMATION OF ACTION LETTER This is to confirm the conversation between Mr. John Larsen, Wrangler Labs and Mr. R. J. Everett, USNRC, Region IV on November 10, 1987. Based on this conversation, it is my understanding that Wrangler Labs, and/or Larsen Labs, and/or Orion Chemical is taking the following actions: 1. Immediately cease all receipt of, and effective November 13, 1987, cease all processing of licensed material (depleted uranium) until such time that it is further authorized by the NRC. The period between November 10-13, 1987, may be used to complete the processing of the licensed material on hand according to your procedures so long as such processing does not exceed 15 pounds of source material. The individuals perfoming this work will wear lapel air samplers to determine persoanel exposure to airborne radioactivity, and will submit urine samples for uranium determinations before beginning the procedures, and between 48 and 96 hours following completion of the procedures. 2. Effective November 13, 1987, secure all licensed material on hand and any equipment previously used to process licensed material at Evanston, Wyoming in its present location at Jay-Gee Industrial Park, Unit 1214, Evanston, Wyoming. Prevent all access, disposal, or removal of licensed material from this location until further authorized by the NRC. Shipments of final product, up to 15 pounds of so rce material may continue. 3. Arrange to have your employee identified by the initials S whtse-February 18, 1987, urine bicassay measured 108 vg/1, submit a vrine sample to a qualified laboratory to be tested for uranium and albuminuria Report ti.e results of the test to this office upon receipt. CERTIFIED MAIL RETURN RECEIPT REQUESTED 1 h EO [ RIV:NMI5 W C: C, C:NMEPB '

D RA AI 87-457 DBSpitzberg;ap RJEM'e tt WLFisher RLE ngart DAPowers RDMartin to/ msy st /p tg7 4g lt:/87

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4 Larsen Labs. Incorporated ( Issuance of this Confirmation of Action Letter does not preclude the issuance of an order formalizing the above commitment. If-your understanding differs from that set forth above, please call Mr. R. J. Everett at (817) 860-8187 immediately. Sincerely, ~ tt-Robert D. Martin Regional Administrator " cc: Wyoming Radiation Control Program Director Utah Radiation Control Program Director bet: DMB - IE-07 RDMartin RLBangart REHall WLFisher-RJEverett CLCain DAPowerss/ TDMartin, DEDRO Staff JLieberman, OE B5ummers, OE HLThompson, NM55 'JCarson NMEPB RIV Files

DEC 8 1987 - ~ ~ In Reply Refer To: i Docket: 9999004/8704/ CAL A7-24A General License: Wrangler Labs, Evanston, Wyoming EA 87-223 Larsen Labs, Incorporated ATTN: John P. Larsen, President 3853 North Sherwood Drive Provo, Utah 84604

SUBJECT:

CONFIRMATION OF ACTION LETTER This is to confirm the. conversation between Mr. John P. Larsen, Wrangler Labs and Mr. William L. Fisher. U$NRC, Region IV on December 4, 1987. Based on that conversation, it is my understanding that Wrangler Labs, Larsen Labs, and/or Orion Chemical will take the following actions: 1. By December 8,1987, obtain, from the following persons, urine samples for uranium analysis by a reputable bicassay laberatory. These urine pmples are to be voided into containers known to be free of uranium contamination, and the date and time of voiding re to be docuu 'ted. OF 2. Provide this office the address, if available, or a description of the California and Nevada location (s) at which depleted uranium in any form or cuantity has at any time been received, processed, or shipped by Mr. John P. Larsen or by any other person on Mr. Larsen's behalf. 3. Dispose of licensed material (depleted uranium) remaining in the Evanston, Wyoming facility. Material in process but not recovered as UAA when operation ceased on November 13. 1987, may be either: (1) processed to UAA and transferred to a customer or (2) disposed of as radioactive waste. 4. Decontaminate all surfaces and ecuipment within the Evanston, Wyoming facility to or below the following levels: Average" fixed - 5,000 com alpha per 100 cm2 Maximum fixed - 15,000 dpm alpha per 100 cmr Removable - 1,000 dom alpha per 100 cm2 ' Average over an area not greater than 1 square meter. CERTIFIED MAIL RETURN RECE]PT RE0 VESTED n RIV:NMIS M C:NMISY,C:NMEP8h':DR ", EO gf RA 87-457 DBspitzoerg;ap RJEve re t't WLFisher RLBa - t DAPowers R. tf

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1 o I t l l Letter to'Larsen Labs, Inc. 1 I 5. Con.plete the disposal and decontamination wort by December 31, 1987, and notify this office so that we can make a confirmatory survey before you ' vacate the facility. J 6. Upon vacating the facility, remove eli items not belonging to the l facility owner. 1 Issuance of this Confirmation of Action Letter does not preclude the issuance of an order formalizing the above commitment. If your understanding differs from that set forth above, please call Mr. W. L. Fisher at (817) 860-8215 or Mr. D. B. Spitzberg at (E17) 860-8191 - immediately. Sincerely, OChM :a:...a a P.C2:r.T D n...,.a4 Robert D. Martin Regional Administrator Cc; Wyoming Radiation Control Program Director. Utah Radiation. Control Program Director bec: DMB - IE-07 RDMartin RLBangart REHall-WLFisher RJEverett CLCain DAPowers/ JMTaylor, DEDRO T0 Martin, DEDRO Staff JLieberman, D/DE LJChandler, Asst. GC/0GC ESummers. OE HLThompson, W.SS JCarson NMEPB RIV Files l 1

ei In Reply Refer To: Docket: 9999004/8704/ CAL B7-24B General License: Wrangler Labs, Evanston, Wyoming EA 87-223 Larsen Labs, Incorporated ATTN: Jonn P. Larsen, Presicent 3E53 North Sherwood Drive Provo, Utah 84604

SUBJECT:

CONFIRMATION OF ACTION LETTER This is to confirm the conversation between Mr. John P. Larsen, Wrangler Labs and Mr. Richard L. Bangart USNRC, Region IV on December 31, 1987 Based on that c. conversation, it is my understanding that Wrangler Labs, Larsen Labs, and/or Orion Chemical will take the following actions: 1. Immediately cease all activities involving depleted uranium at the-Evanston, Wyoming facility until further notice from the NRC. Included are activities inv*' ling equipment or waste handling, liquid volume reduction, and dec m amination. This work stoppage will stay in effect until such time as the NRC determines that work can be conducted without exposing individuals to elevated levels of uranium. 2. By January I, 1988, obtain from the following persons, urine samples for uranium and albuminuria analysis by a reputable laboratory. Submit with these samples a background urine sample, for uranium analysis only, ottained from an individual who has not worked with depleted uranium and is known to have no lung or systemic uranium burden other than from natural background. 1 S 3. Collect additional urine samples for uranium analysis only from the two l individuals identified above at a frequency of once every three (3) days until such time that the results of two consecutive samples are less than 30 99/1. All urine samples are to be voided into containers known to be free of uranium contamination, and the date and time of voiding are to be documented. l 4 Submit copies of the results of urine sample measurements to this office as you receive them. CERTIFIED MAIL RETURN RECEIPT REQUESTED l l I, I q l w RIV:NMIS M C:NMIS [ / C':NMEPB D: EO RA 4/ AI 87-457 i DESpitzberg;ap RJEverett i WLFisher RLea gart DAPowers R rtin I 'JL/ '-/ ' l ' ' p /4 /tf It f>I /\\) / / f/ 1 I -- J 4 002 l .i

' jf 1 Letter to Larsen Labs.:Inc. Issuance ~of this Confirt,.ation of Action Letter does not preclude the issuance of an order formalizing the above commitment. If your' understanding differs.from that set forth, ple;se call Mr. R. L. Bangart at (817) 860-8248 or Mr. D. B. Spitzberg at. (837) 860-8191 immediately. Sincerely, ORIGIN #4 E' ' _ p,Qi,LR,i 0..'.'*. 'A h 3 Robert D. Martin Regional Administrator cc: Wyoming Radiation Control Program Director Utah Radiation Control Program Director. bec: -DMB -IE-07 RDMartin RLBangart REHall WLFisher RJEverett' CLCain DAPowers/' DBSpitzberg .JMTaylor DEDRO 70Eartin, DEDRO Staff JLieberman, D/DE LJChandler, Asst. GC/03C B5ummers, OE.it HLThompson, NMSS JCarson NMEPB-RIV Files -m_____________ 6

C. / 6-t ' % f[ gene, UNITED STATES j NUCLEAR REGULATORY COMMISSION y c j nAsmevotom.o c.rosss

• '.. f FEB 2 ri:;

l Occket No. 9999004 License Nc. General License EA 87-223 Wrangler Laboratories, Larsen Laboratories. Mr. John F.gs[1' Ccmoany, and Orion Chemi 'Larsen 3853 North Sherwood Drive Provo, Utan 84604

Subject:

Order Suspending Licenses (Effective Irrrnediately) Enclosed is an Order, effective irunediately, suspending the general licenses applicable to you and your three firms pending the results of NRC's investigation. In accordance with Section 2.790 of the NRC's ' Rules of Practice," Part 2 Title 10. Code of Federal Regulations, a copy of this letter and the enclosure will be niaced in the NRC's Public Document P.oom. The response directed by this letter and accompanying Order are net subject tc the clearance procedures of the Office of Manage-ent and Budget, as recuired by the Paperwork Reduction Act of 1980, PL 96-511 Sincerely, / \\ . Taylar Deputy Executive Director v 'for Regional Operations

Enclosure:

As stated cc: Wyoming Radiation Centrol Program Directer Utah Radiation Control Program Director CERTIFIED MA*L RETURN RECEIFT REOUESTED --R I ll o. 4 002 f

I L'NITED STATES. NDCLEAR REGULATORY COW:$SION g

n the Matter of.

) krangler Laboratories. ) Docket Ne. 9999004 Larsen Laboratories, , ). License Nc. Genera l Licer.se Orion therical Company. Jnd ) EA E7-223 John P. Larsen ) 3853 North Sherwood Road ) Provo Utah 84604 ) ,.ORCER SUSPENDIt:G LICENSES (EFFECTIVE IP94EDIATELY) I Wrangler Laboratories. Larsen Laboratories, and Orion Chemical Company (the licensees) are firms using source neterial under general licenses granted by the Nuclear Regulatery Commission (the Comission/NRC) pursuant to 10 CFR 40.22. The general licerse granted by 10 CFR 40.E2 authorizes the use er l transfer of not more than 15 pounds of source material at one time and the receipt of not more than 150 pounds cf source material in any one calendar year. Larsen Laboratories is else a holder of a specific :edioactive t'aterial-84 cense UT 2500163 issued by the State of Utah. Tee specific ticense. which authorizes pcssession of up to 150 kiiegrams cf cepleted urenium (DU) at one time, is current 1y suspendeo by the State c' Utah. Mr. Larsen has been doing business as (dba) krangler Laboratories. Larsen Laboratories, and Orion Cherical Company and is the ewner and sole preprieter of these firms. Mr. Larsen's companies are all involved in the chemical processing of OU. The licensees receive slugs of DU. dissolve the raterial in boiling nitric acid. precipitate uranyl acetyl acetate (UAA) using 2.4 entanedione, dissolve the UAA precipitate ir benzene to preduce recrystallize 6c l'AA, and sucsecuently dry, grind, filter, package and ship the pure UAA creduct. The UAA product is ultimately used as a catalyst in the productice c' Cepartment of Ceferse munitiCrs.

I s'n inscection was ccr. ducted at Orion Chemical Company Cn August 23, 1962, During the inspection NRC determined that the licensee was in vicletion of several reed 1'atory requirements.,;These violations included possession of source material at one time in excess of the 15 pound limitation on such material, refusal to make records available to NRC. unauthorized disposal of DU, and failure to maintain complete records. Subsequently, on September 2. 1982, the NRC issued an Order to Show Cause and Order Temporarily Suspendino License (Effective Ireediately). On October 25, 1882, the NRC issued an Order Rescincing Order to Show Cause anc Order Temporarily Suspending License. This action was taken following the licensee's corrective measures, to bring the operations into compliance. On December 15,1982. "e f'RC issued a Notice of Violation (NOV) and Proposec Imposition of Civd' ienalty for the above violations. The amount of the Civil Fenalty was $500 On March 16, 15E3, i the licensee responded to the h0V and paid the Civil Fenalty. I l A specific license (SUB-143C) was issued by the NRC 4". December 1983 to Larsen Laboratories of Provo, Utah. The responsibility fer everseeing this specific license was transferred to the State of L'tah upon its becomino at Agreement State. On May 13, 1985, Utah reissued the specific licer.se to Larsen Laboratories. i On April 15, 1986, hRC received ar allegation ef improper activities being condet.ted by Larsen Laceratories. The 611egatien was transferred to the State

-3 ( cf Utah which performed inspections and fourc P.unerous viclatiens.

n ail, the State of Utah found.5 contaminated facilities that Mr. Larsen hac abarto At one of these facilities, contaminated liquics were leaking from crurrs thtt had been stdr on a truck for approximately 2 years. On November S

'066, the State of Utah issued an Order Suspending License (Effective famediately) and Order Imposing Civil Monetary Penalties in the amount of $13,000. The Order, which is still in effect, recuired, among other specified actions, that the licensee (1) not receive or use source material except to secure or transfer such source material in its possession, (2) dispose cf radioactive wastes, (3) decontaminate 2 facilities in the Oren area. (4) move to production facilities that have been approved through license amendment procedures, and (5) obtain a qualified Radiation Protection Officer. On January 15, 1987, a Settlement Aorcement between the State of Utah anc Lersen Laboratories was signed. The Agreement required that the specifiec activities in the Order be completed by April 15, 1987, ano that $8,000 of the civil penalties would be suspendec. The licensee paid the remaining !5,000 civil penalties but has not cermlied with items (A) are (5) of the Order. On October 28, 1987, the State of Wyoming irformed the hRC of an allegatien that it had received concerning impreper activities at Wrangler Laboratories in Evarston, Wyeming. On November 4-5, 1967, ARC inspected Wrangler Laboratories and (cune that fir. Larsen, deirg business as Wrangler Laboratories, was conducting chemical operations in a temperary facility and apceared to have exceeded cranium pcssession limits. As e result of NRC concerns, NPC Region IV sttff discussec with Mr. Larsen, the potentially hazardous conditions at his i

L Evanston facility and obtaired an agreement for certain corrective measures. Those actions were spectfiec in Confirmation of Action Letters ICAL) issucc en November 12, 1987 Decenter 8,1967, and Decenter 31, 1987. I Anenforceedr[tconferencewashelewithMr.LarsenonDecember2,1987,inSalt Lake City. During the course of the enforcement conference a nurter of matters of regulatory concern arose: ~ 1 Mr. Larsen stated that be had previously conducted chemical processing of DU operations in the State of California (Fountain Valley, Huntington Beach areal about 10 to 11 years ago and in the State of Nevada (in the back of a pickup truck in the Hencersen area) between November 1986 and Merch 1987. These statenerts were contradicted' to those he gave to the fiRC inspecter durine the November 4-5, 1987 ice.. ection. During the NRC irspection, Mr. Larsen was specifically asked vbether he conducted cperatiens with scurce material at any piace outsice cf the States of Utah ard Wyoming. Mr. Larsen responded that he hadn't. 2. In +he November 12, 1987 CAL, the licensee connitted to having ercloyees submit urine samples for uranium analyses before resuming and fo'iewing the cog letion of the processing of the licensed material on hand at the Evanston, Wyoming, facility. During the enforcement conference, Mr. Larsen proviced a November 25, 1987, letter that eeve the results of such semeling. The licensee deviated from the cognitment described in the November CAL in that baseline analyses were not conducted and, insteac, only pcst-clearup analyses were obtaired en one of two individuals in these activities. The indicated pest-cleanup tralyses were slightly tr excess of NRC action leve's 0

l -?. l for uranium bioassays., Mr. Larsen stated the reason for the elevated urarium concentrations was the use of laboratory glassware that mi;nt have beer contaminated with uranium. On about hovember 19. 1FE7, four samples were taken with pharmaceutica 11y clean glassware. Two of these ot fourserrphershowedhigherthanbaselineconcentrationcandnoneofthe specimens were controlled or independently verified. Another deviation from the November 12, 1987 CAL was a failure by the licensee to recuire individuals who were to perfors the processing of licensed sterial on hano to wear lapel air samplers. 3. Mr. Larsen stated that his companies were the only ones suoplying UAA for Department of Defense (D0D). The NRC has determined that, contrary to this assertion, DDD purchases UAA from others. 4 Prior to and during the enforcement conference, Mr. Larsen told the NRC that UAA shipments from Wrargler Laboratories were made from Provo, Utah. Mr. Larsen provided l&C with records to suopert his statements. These sta*.ements, however, were contrary to statements given previously to the State of Utah authorities, who were told that all Wrangler Laboratery shipments were from Evanston, Wyoming, In addition, the records provided by Mr. Larsen aise show that, notwithstanding the 15 pound possession limit, a shipment sent to the UAA buyer on August 7,1967 from Provo, Utah, contairec 16.766 pounds of source material. 5. Mr. Larsen was askee wnether he er any of his ccmpanies had curchased DU from any supplier other than Nuclear Metals,.nc. Mr. Larsen responded that they hadn't. Contrary to that statement, the NRC obtaince records from Wmm-__u-_------s---

l ) l ( Aerojet Heavy Metals Company that show that they had race DU shierer.ts to j Larsen Laboratories on more than one occasien. i 4 In inte December 1987, the NRC learned from Mr. Larsen that urine samples arelyzed 1 l pursuant tofthe conenitments in the December 8,1987 CAL had indicated some uranium intake by persons involved in cleanup of the Evanston facility. Cn December 31, 1987, another CAL was issued cerfirming termination of activities at the Evanston facility involving uranium until further notice from tFe NRC and the performance of further bicassays. Ir eeviation from a comitnent specified in the Cecember 31st CAL, the licensee failed to have two individuals submit urine samples for uranium analyses until January 10, 1988, nine days after the agreed upon date. As a result, the uranium intakes for these individuals could not be estinated. II: The NRC is currently conducting an investigation of Pr. Larsen's NRC-licensed activities. Basec on the inferrnation to date, Mr. Larsen has failec to fulf'11 comitments made on behalf ef his firms to the NRC, hes made contradictory statements to NRC and the State of Utah authorities, anc his firrns have processed uranium in an unsafe marrer with inacecuate certrols and resulting l contaminatier. These actions demonstrate an unwillingness to comply with hRC regulatory recuiremerts and safe work practices which cannet be toleratec. Therefore, I lack the recuisite reasonable assurance that Mr. Larsen, indivi-uhally, and the companies, which he is the owner of and/or principal of, will

comply with Comission requirements in the future. Therefore, : tave dete-ired, pursuant to 10 CFR 2.201,(ci are 2.20'2(f), that the public health, safety, an: interest require that ending the results cf the investigation and further order of the NRC, the general license authorization for Mr. Larsen, as well as the namec lice Wds, to receive and use NRC licensed material under their respective general licenses shcula be suspended sub.1ect to conditiers, as described below, effective imediately, and that ne prior notice is required. i IV Accordingly, in view of the foregoing and pursuant to Sections 62, 63, 81, 161b, 161c, 1611, 161o, 182 and 186 of the Atomic Energy Act of 105a, as menced, and the Comission's regulations in 10 CFP Darts 2 and 40, IT IS FEREBY ORDERED, EFFECT!VE IMMED:ATELY, THAT: A. The general license authority of 10 CFR 40.22 with respect te Wrangler Laboratories, Larsen Laboratories, Orion Chemical Company, anc Mr. Larsen is suspendec and the foregcing licensees and Mr. Larsen shall not receive or use source Paterial, except as perritted in Condition 8 below. B. 1. Mr. Larsen, che Wrangler Laboratories, shall decontaminate all surf aces and ecuipnent within the Evarston, Wyoming, facility to or belew the following levels: Average fixed - 5.CCC com alpna per 100 em2 fiaximum fixcc - 15,000 com alpha per 100 cm

- Remevable - 1,000 con alpha oer 100 cm2 ' Average over a'n area not greater than 1 square treter. 2. Mr. Larsen, dba L'rangler Lateratories, sFall dispose of r** licensed material (DU) remairing in the Evanston, llyoming, facility. Material in process, but not recovered as DAA to date, must be disposed of as radioactive waste in acccrdance with NRC requirements. 3. fir. Larsen, dbe Wrangler Laboratories, shall complete the-disposal and decontamination work required by Items B.1 end B.2 within 30 days of the date of this Order. 4 Mr. Larser stell notify the Region : office that the deconta-minatice and disposal has been in ac:ordance with this Order before vacating the Evanston llyoming fecility. Upon vacating the facility, Mr. Larsen, dba Wrangler Laboratories, shall i receve all items belonging to the licensee. C. Within 30 days of the date of this Orcer, Mr. Larsen, dba the licensees, any other company, or Hmself shall provide, in writing, to the Region l IV office the accress, if available, er a description of all locatiens {' at vtien DU in any form or cutntity has at any time been received, processec, or shipped by Mr. John P. Larsen or by any other person ) or firm on l'r. Larsen's behalf.

.o. D. Mr. Larsen, dba the licensees, shall submit a report cf the results cf all urine eemple uranium analyses which were ccmritted te SKC en and since Cecember 4, 1987, to NRC Region !Y within 30 days cf the date of this Orcer. 9* ,I' The Regional Administrator, Pegion IV may, in writing, relax pr' rescind any of the above previsions in Section IV fer good cause. V Pursuant to 10 CFR 2.202(b), the lice 6 sees and Mr. Larsen, me" shew cause why this Order should not have been issuce by filing a written answer under oath or affirmation within 20 cays of the date of issuance c' this Order, setting forth the Pstters of' fact and law cr which the litersees ar.d Mr. Larsen rely. The itcensees and Mr. Larsen, r.ay answer this Order, as provided in 10 CFR 2.2C2(d), by censenting to the provisiers specified in Section IV above. Open consent of Mr. Larsr-or the licensees, to the previsiers set forth in Section !Y of this Orcer, or uten their failure to fi'e an answer within the specified time, the provisions specified in Section !Y above shall be final withcut further Order. VI Pursuant to 10 CFR 2.202(b), Mr. Larsen and the licensees, or any other person adversely af#ected by this Creer may recuest a hearing withir 20 days c' this Orcer. Any answer te :his Orcer er recuest fer i-earing shall be _.____-_.__-.-_---_-.a 4

. submitted to the Directer. Office cf Enforcement, U.S. Nuclear Regulatery l. Comission Washington 0.C. 20555.' Cepies also shall be sent to the Assistant General Counsel for Enforcement Office ef r,eneral Counsei et the same address,and to the Regional Administrator, NRC Region IV, 611 Ryar Plaza Drive, Suift 1000, Arlingten, Texas 76011. If a person other than Mr. Larsen, dba the licensees requests a hearing, that person shall set forth with particularity the manner in which the petitioner's interest is adversely affected by this Ord6r and shculd address the criteria set forth in 10 CFR 2.714(d). AN ~ ANSWER TO THIS ORDER OR A REQUEST FOR HEARING SHALL NOT EFFECTIVENESS OF THIS ORDER. If a-hearing is recuested, the Corcission will issue an Order designating the time anc place of any hearing. If a hearing is heic, the issue to be considered at such a hearing shall be whether this_Crcer should be sustained. FOR THE NUCLEAR REGULATORY COMISSION / \\ [th me Taylorf Decuty Executive Director f 3 j er Regional Operations Dated at Bethesda, Maryland, this 25th day of February 1988 ---__.__.______._____-._.___..m_-..._m._

,4 John P. Larsen 0:5718UTION I bec w/ encl: PCR SECY ~ CA

JMTaylor, DEDRO THurley, NRR HThompson, HMSS JLieb~erman, OK, LChandler,- OGC

. Enforcement Officers RI, RII, RIII, RV HDenton, OGPA EJordan, AE00 BHayes, 01 Stonnelly, CIA' OE:ES File OE:EA File ' B5unners, OE (1tr hd) DCS RIV Distribution: RMartin JMontgomery RBar.gart WFisher JEverett DESpitzberg(1tr hd! JGilliland GSanborn DPowers RIV Files MIS Coordinates I i i -l 1 l / D"3,- s*g,2 g.N.ivx kA:T!!Q fNSig ' f OE1EE9r

• 'yt /

OGC ast EFlack-RMartin RCucntngham LChandler JLdeberman f Tay or i 2/04/68 2/n/88 2/sw 88 2/Jf/88 2/ 1/E8 / 2/(/88 1 V L_._._.___.___._..___.._

LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE 4 p' 4 UNITEo STATES k -..;....< / ^q. NUCLEAR REGULATORY COMMISSION [, l j' REGION IV e l E 8 . $11 RYAN PLAZA DRIVE. SulTE 1000 "Y y l .{ ARLINGTON. TEXAS 70011 g E l4 W T. h 9 T W " J. Request No. RIf $~ 0 5 L vi T0i DonaldD.Driskill, Director,OfficeofInvestigationsFieldOfffN,Rtt FROM: Robert D. Martin, Regional Administrator, RIV-REQUEST FOR INVESTIGATION Wrangler Labs /Larsen Labs / 9999004/UT2500183 -Orion Chemical Company Utah General License Licensee / Vendor / Applicant Docket or License No. Evanston, Wyoming /Provo, Utah /Provo, Utah 87-223 Facility or Site Location F A. Issue On August 23, 1982, NRC inspected Orion Chemical Company of Provo, Utah. The Company was apparently owned and operated by John Paul Larsen, President. The licensee's operations involved the chemical processing of depleted uranium.(DU) under the provisions of a general license as specified by 10 CFR 4').22. The licensee received slugs of DU, dissolved the material in boiling nitric' acid; precipitated uranyl acetyl acetate (UAA) using 2,4 pentanedione; dissolved the UAA precipitate in benzene to produce recrystallized UAA; and subsequently dried, ground, filtered, packaged and shipped the pure UAA pre. duct. The licensee's DU purchases were froin Nuclear Metals, Inc. and the buyer for the licensee's product was the Hysol Company (a part of the Dexter Corporation) who in turn sold i the product to the Heneywell Corporation. Honeywell operating under a Department of Defense contract then used the UAA product as a catalyst in l munitions. j i As a result of the August 23, 1982, inspection NRC found 4 violations j involving possession at one time in excess of the 15 pound limitation on i source material, refusal to make records available to NRC, unauthorized I disposal of DU, and. failure to maintain complete records. Subsequently, an Order to Show cause and Order NRC issued on September 3,1982(Effective immediately). Temporarily Suspending License On October 25, 1982,'NRC issued an Order Rescinding Order to Show Cause and Order j . Temporarily Suspending License. This action was taken following the I Iff_ l ... b . 4'.288--002 LIMITED DISTRIBUTION. NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH 01 L--____-_--_-_-.

E ll um izu utsininusivn - avi run ruout visutusunc Donald D. Driskill -2 i licensee's corrective measures being implemented to bring the operations into compliance. Dr. December 15, 1982 NRC issued a Notice of Violation (NOV) and Proposed Imposition of Civil Penalty for the 4 violations. The amount of the Civil Penalty was $500. The licensee paid the Civil Penalty and responded to the NOV by belated letter dated March 16, 1983. I Previously, in May 1982, Orion Chemical Company had app (SUB-1436) was lied for a specific license to chemically procesc DU. A specific license ultimately issued by NRC in December 1983 but to another Larsen organization entitled Larsen Laboratories Inc. of Provo, Utah. The responsibility for overseeing this specific license was transferred to the state of Utah upon its becoming an agreement state. On May 13, 1985, Utah l reissued the Larsen Laboratories specific license. On April 15, 1986, NRC received an allegation (allegation No. 4-86-A-0030) on improper activities underway by Larsen Laboratories. The allegation was transferred to the state of Utah who performed inspections and who found numerous violations. In all, the State found 5 contaminated i facilities that Mr. Larsen had abandoned. At one of these facilities, contaminated liquids were leaking from drums that had been stored on a truck for approximately two years. Consequently, on November 5, 1986, the state of Utah issued an Order Suspending License (Effective Immediately) and Order Imposing Civil Monetary Penalties. The Civil Penalties Imposed were $13,000, and the Order, which is still in effect, required amongst other specified actions that the licensee (1) not receive or use source material except to secure or transfer such source material in its possession, (2) dispose of radioactive wastes, (3) decontaminate 2 facilities in the Orem area, (4) move to production facilities that have been approved through license amendment procedures, and (5) obtain a qualified Radiation Protection Officer. Subsequently, on January 15, 1987, a Settlement Agreement between the state of Utah and Larsen Laboratories was signed. The Agreement requires that the above Order specified activities will be completed by April 15, 1987, and that $8,000 of the Civil Penalties wocid therefore be suspended. The licensee has paid the remaining $5,000 Civil penalties but had not completed the latter 2 Order specified requirements given above. On October 28, 1987, the state of Wyoeing infomed hRC of an allegation I (Allegation No. 4-87-A-082) that it had received about improper activities of Wrangler Laboratories, which is apparently owned and operated by Mr. Larsen. On November 4-5, 1987, NRC inspected Wrangler Laboratory facilities in Evanston, Wyoming. The inspection found that Mr. Larsen was now conducting his chemical operations in a temporary facility and may ] have again exceeded DU possession limits. As a result of NRC concerns, 1 NRC Region IV staff discussed with Mr. Larsen the potentially hazardous conditions at his Evenston facility and obtained an agreement for certain I corrective measures to be taken. Those actions were specified in Confirmation of Action Letters issued on November 12, 1987, and December 8, 1987. LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH 01 l l J

t c....._a......,...... Donald D. Driskill i-An enforcement conference was held with Mr. Larsen on December 2,1987, in Salt Lake City. To the enforcement conference, Mr. Larsen brought a staff assistant from U.S. Congressman Howard C. Neilson's Salt Lake City, ' Utah office. Also..in attendance at the enforcement conference were representatives from the state of Utah. At the enforcement conference, Mr. Larsen explained that he was being mistreated by landlords, neighbors, l and state and federal authorities. He explained that he only wanted to be left alone to conduct his production operations which are important to the D00. He explained that he had discussions with representatives of NMSS to ensure he had the right to conduct general license' activities in Wycraing prior to commencing such operations. He offered.that it seemed as though people were just looking for reasons to shut his operations down and for that reason he was opposed to being granted an NRC specific license because.it would just require of him adherence to new regulations which he was not aware. As a result of the enforcement conference and post-meeting discussions with the representatives from the state of Utah, NRC has a reasonable basis for belief that the licensee may have comitted one or more acts of wrongdoing. Wrongdoing, if it did occur, would not be a precedent for Mr. Larsen. At the enforemnent conference, Mr. Larsen stated that he had. deliberately decided not to adhere to one of the requirements of the state of Utah. That requirement was to periodically process TLDs. Mr. Larsen stated he saw no. reason to do such periodic processing because he knew there would be no significant exposures accrued in the conduct of his operation. Subsequently, the state of Utah cited Mr. Larsen for this noncompliance. O! investigation is also needed to establish whether the licensee comitted violations of the provisions of the general license in areas under NRC jurisdiction. t B. Purpose of Investigation l 1. Suspected Wrongdoing: The following is a listing of issues that j either the licensee is suspected of or O! investigation is needed to l ascertain whether violations of NRC requirements have occurred, j (1.) During the NRC inspection on November 4-5, 1987, Mr. Larsen was j specifically asked by the NRC inspector whether he had conducted operations with source material at any place outside of the states of Utah and Wyoming. The licensee responded that he hadn't. However, during the course of the enforcement conference Mr. Larsen stated to the attendees that he had conducted such subject operations in the state of California (Fountain Valley, Huntington Beach area) about 10 to 11 years ago and in the state of Nevada (in the back of a pickup in the Henderson area) between November 1986 and March 1987. The 1 l LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH 01 i Il

Donald D. Driskill -4 licensee has stated that the DU processing in Nevada was accomplished at-an unknown location.in the desert. Mr. Larsen stated that these operations had been conducted under the provisions of a general license. The original declaration by Mr. Larsen may constitute a material false statement.- Furthermore, since records thBt are available show that.the licensee received 150 pounds of.DU in Utah during the March to October 1987 time period, then any DU received in Nevada during the course of the calendar year would constitute a violation of the general license provision. (2.) As a commitment in the first CAL, the licensee was to have. ~ employees submit urine samples for uranium detarminatior.s before resuming and following the completion of the processing of the licensed material on hand at the Evanston, Wyoming, facilities. During the enforcement conference, the licensee provided a November 25, 1987, letter that gave the results of such sampling. The licensee deviated from the CAL in that baseline-analyses were not conducted'and instead only post-cleanup analyses were obtained. The indicated post-cleanup analyses are somewhat high. Mr. Larsen stated the reason for the elevated uranium concentrations was due to use of laboratory glassware that might have been contaminated with uranium. Mr. Larsen stated that values (handwritten on the November 25, 1987, letter by Mr. Larsen) are the results of a second analyses utilizing pharmaceutica 11y clean glassware. However, no specimens were controlled or independently verified and no dates of sample submissions were specified. It is possible that Mr. Larsen is attempting to hide from his employees and NRC the true employee urinalyses. Another deviation from the CAL was that Mr. Larsen failed to require individuals who were to perform the processing of licensed material on hand to wear lapel air samples. (3.) Did Mr. Larsen obtain DU from any supplier other than Nuclear Metals, Inc? If such receipt did occur, it might have been under a name other than Mr. Larsen and/or to a company name different from Orion Chemical, Larsen Labs, or Wrangler Labs. 01 efforts to obtain copies of any receipt records currently unknown to NRC would be useful in establishing whether the licensee violated the provisions of 10 CFR 40.22(a). (4.) Similarly to Number (3.) above, did Mr. Larsen sell U.A.A. in I amounts greater than 150 pounds during any one calendar year? Mr. Larsen has inferred that a Hysol Company representative was pressuring him to supply more material than was permissible under 10 CFR 40.22(a) provisions. Any 01 discussions with the Hysol Company should inouire as to whether other companies purchase U.A.A. LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH 01

uni s tu usainacui 4vn - nui run ruoc4u u oveu.>vnu Donald D. Driskill ! (5.) At the enforcement conference, Mr. Larsen stated that his companies 'were the only ones supplying U.A.A. for D0D because no others could make as good a product. This statement, which may have been designed to influence NRC enforcement decisions, may also have been a material false statement. Representatives of the state of Utah stated that the Hysol Company buys U.A.A. from Mr. Larsen only because he supplies U.A.A. cheaper than others do. We suspect that Mr. Larsen is aware of his competitors. (6.) The OI investigation should establish from which state (s) Mr. Larsen sent Wrangler Labs' U.A.A. shipments to his buyer. Copies of records that we received from Mr. Larsen show Provo, Utah, as the origination of U.A.A. shipments. However, representatives from the state of Utah stated that Mr. Larsen told them that Wrangler Labs' U.A.A. shipments were from Evanston, Wyoming, and that he bought no U.A.A. material processed in Wyoming into the state of Utah. 2. Involved Regulatory Requirements: Based on information available to date violations of the following regulations may be involved: 10 CFR 40.3,10CFR40.22(a),10CFR40.61(a),2 deviations (totheCAL), and Sections 186 and 223 of the Atomic Energy Act of 1954 (as amended). 3. Regulatory concern if no violation suspected: N/A 4 Staff views if allegations are involved: NRC's reactive inspection of Wrangler Labs' facilities was initiated following receipt of an allegation that was initially submitted to the state of Wyoming. Several aspects of the allegation were substantiated during the inspection. C. Recuester's priority 1. Priority: High(a.1) 2 Requested Completion Date: December 31, 1987 3. Schedule Basis and Impact: Activities underway by John P. 8.arsen (dba) Larsen Labs, Orion Chemical Company, and Wrangler Labs have I revealed a continuing and apparently intentional effort to deceive federal and state regulatory officials. Although Mr. Larsen has comitted to NRC to a cessation of activities, NRC lacks the requisite confidence in Mr. Larsen and believes it to be plausible that such noncompliant activities could be underway at locations unknown to NRC or state agencies. An investigation is necessary on LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH 01 h

LIM 11tu OlblRIBUllVN - nut FOR PUBLll U15LLUbukt' I Donald D. Driskill l-an expedited basis to establish whether company employees are being unnecessarily exposed to radiological as well as toxicological hazards. At this time, enforcement actions of an escalated nature are being considered and due to potential safety concerns these enforcement actions may be effectuated prior to receipt of their results of an investigation. D. Contact 1. Staff members: Dale ~A. Powers, Enforcement Officer William L.' Fisher, Chief, Nuclear Materials and Emergency Preparedness Branch 2. A11eger(s): Confidential _ Not Confidential 1 Anonymous E. Other Relevant Information Additional details pertinent to this issue are available from the Enforcement Officer files (under case EA 87-223) and the Allegation Coordinator files (under case 4-87-A-082). obert D. Martin Regional Administrator

Enclosures:

{ (SeeAtached) { l i j J LIMITED DISTRIBUTION - NOT FOR PUBLIC DISCLOSURE W/0 COORDINATION WITH O! i

I i i REPORT OF INTERVIEW WITH CRAIG JONES j On February 29, 1988, JONES, Health Physicist, Utah Bureau of Radiation Control, was interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg in Salt Lake City, Utah. When questioned about Utah's suspension of J. LARSEN's specific license JONES said that initially J. LARSEN was not responsive to inquiries by the State of Utah asking J. LARSEN to identify his business locations. JONES said that he was eventually able to locate J. LARSEN who had continually failed to respond to mail sent to his home. JONES said that J. LARSEN ur,ed various business names, such as Orion Chemical and Larsen Laboratories, but these were names not registered with the State. JONES said J. LARSEN never obtained a business I license in the Provo area and never registered his business names as corporations in Utah. JONES said he had checked with the State Department of Business Regulations which performed the search for the various names used by J. LARSEN, but said no registrations were found. JONES said the State of Utah obtained copies from J. LARSEN of hir 1986 records of receipt of DU from Nuclear Metals Inc., Concord, MA, and also his records of UAA shipments to Hysol. Olean, NY., JNES said their investigation led to several former J. LARSEN employees who gave them testimony indicating J. LARSEN had little regard for the regulatory requirements related to the production of UAA and the handling of hazardous chemicals. JONES said that a confidential source had identified a location in the mountains of Utah where J. LARSEN had dumped chemical waste. JONES said two former employees of J. LARSEN's said that J. LARSEN did not involve himself closely with the processing, and said J. LARSEN relied upon his temporary employees to do the majority of the work. JONES said Utah's investigation also revealed that J. LARSEN had conducted processing activities at four separate locations in Utah. JONES said that on Noveber 5, 1986, Utah suspended J. LARSEN's activities for a variety of violations of his specific license. JONES said their investiga-tion concluded that at the time of his suspension J. LARSEN had in excess of one hundred pounds of DU in his inventory. JONES said J. LARSEN also had seventeen drums of radioactive waste which were eventually transferred to the University of Utah for shipment to the State of Washington. JONES said that Utah learned that J. LARSEN had filed for and received a permit with the State of Washington to accept and store waste at their waste disposal facility. JONES said as part of Utah's investigation, they determined that on at leart one occasion in the past J. LARSEN obtained materials from Aerojet Heavy Metal. JONES said the Utah investigation showed that during 1986, J. LARSEN obtained his DU from Nuclear Metals in Concord, MA, and that his sole customer was Hysol in Olean, NY. JONES indicated that J. LARSEN met some of the provisions of his suspension, but others remained open items and that his license remained ir, suspension. This report prepared from notes taken during interview dated February 29, 1988. %/ EWL d4 H. Broots Griffin, Inveaylgator Office of Investigations Field Office, RIV Case No. 4-88-002 EXHIBIT /9 pAGE_L E i

y REPORT OF INTERVIEW WITH GARY ELLINGFORD On March 2,1988. ELLINGFORD, Partner in J. G. Brothers, Evanston, WY was interviewed by NRC Investigator H. Brooks Griffin and NRC Inspector Blair Spitzberg in Salt Lake City, UT. ELLINGFORD said that in January 1987, J. LARSEN and three other men met him in Evanston, WY and inquired about a quonset hut that his partnership had for rent. ELLINGFORD said that soon after J. LARSEN signed the rental agreement, he became suspicious that they might be setting up a drug lab. ELLINGFORD said he questioned them about their business, and they explained that they were making a material used to harden plastic for Honeywell in defense contracts. ELLINGFORD said that because the quonset hut had no heat and no water, he did not think it was an appropriate place for a laboratory facility. ELLINGFORD said he had the police check on J. LARSEN, and said they later informed him that J. LARSEN had no record. ELLINGFORD said that in the sununer there were strong fun 2s coming from the quonset hut, and he requested a meeting with J. LARSEN. ELLINGFORD said that J. LARSEP: finally met with him several months later, and J. LARSEN showed him the DU metal slugs along with Geiger counters and other equipment. ELLINGFORD said he eventually contacted Wyoming Radiation Control about J. LARSEN, and they referred the matter to the NRC. ELLINGFORD said the radiation control officer told him that J. LARSEN was " state hopping" to avoid regulation, and that J. LARSEN used a number of different names in his business enterprises. When questioned about N. L. Acme Tool, ELLINGFORD said that this company had gone out of business and all the employees left in early 1988. ELLINGFORD said that following an NRC inspection, he had been informed that the quonset hut was contaminated. ELLINGFORD said that in December 1987. J. LARSEN asked him for a year's lease, and he said he told J. LARSEN "no." ELLINGFORD said that J. LARSEN currently has property in the quonset hut, and said he is now waiting for decontamination of the building. ELLINGFORD said he had visited the quonset hut while J. LARSEN's employee, Kevin NOACK, was processing material. ELLINGFORD said he found the hut to be dirty, filthy, with evidence of spills, and trash laying around. This report prepared from notes taken during interview dated March 2,1988.

1. AA 4LL H. Broaxs Griffin, fgyestigator Office of Investigations Field Office, RIV Case No. 4-68-002 EXHIBIT 2 I PAGE 1 0r_L l

\\ J l REPORT OF INTERVIEW WITH FRANK VUMBACCO, PAUL F. CLEARY ANTHONY CARPENITO On March 17, 1988, YUMBACCO, Menager, Health and Radiation Safety; CLEARY, Sales Manager; and CARPENITO, Supervisor, Data Management and Health Physics, all with Nuclear Metals. Inc., Concord, MA were interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg in Concord, MA. l They said J. LARSEN placed telephone orders to Nuclear Metals for DU instead of sending purchase orders. They said they were aware that J. LARSEN was chemically altering the DU to make a catalyst. They said that based o's recent publications in the Federal Register, they were aware that J. LARSEN's license had been suspended by the State of Utah and subsequently by the NRC. CLEARY said that on October 19, 1987, he infomed J. LARSEN during a telephone call that he had received his tenth 15 pound shipment for the year which constituted his allotted one hundred and fifty pounds per year under his general license. They said they had reviewed their records, and based of the review did not believe J. LARSEN had received or e.ttempted to receive any addtional DU using any other names, representatives, or business locations. VUMBACCO, CLEARY, and CARPENITO said that on February 5,1988, J. LARSEN had called and placed a hundred pound order in anticipation of being issued an NRC specific license. VUMBACCO expressed concern at the adverse publicity generated for Nuclear Metals based on the information contained in the Federal Register. VUMBACCO indicated that the amount of the money represented by the shipments to J. LARSEN were insignificant in relation to the adverse publicity Nuclear Metals received from having been named in the Federal Register as having supplied J. LARSEN. This report prepared from notes taken during interview dated March 17, 1988. x/ 66414-H. Brooks Griffin, Inv4Atigator Office of Investigations Field Office, RIV Case No. 4-88-002 EXHIBIT 2 2-PAGE / Or :

3' '\\ 1 b R'EPORT OF INTERVIEW WITH PHILLIP SNYDER AND THOMAS ~QUINN L On March.14, 1988, SNYDER, the Materials Manager and Radiation-Safety Officer i_ (RS0) - and QUINN, the Purchasing Manager, Hysol Electronic Chemicals Division, b were interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg in Olean, NY. SNYDER dnd QUINN said that in April 1987, they received a New York specific license to handle amounts of UAA greater than 15 pounds at one time. They admitted that prior to receiving the specific license, they had been ignorant of the weight limitations, and had regularly exceeded the limits under a New York general license. SNYDER and QUINN said it took a long time for the specific license.to be issued, but said that in January 1987, Andrew AWAI, a State Department of Labor representative, verbally authorized Hysol to possess ' amounts of UAA greater than 15 pounds. SNYDER and QUINN said they first dealt with J. LARSEN as a supplier of UAA when he was located in California. They said J. LARSEN later infonned them that he had relocated to Utah. When questioned about their UAA suppliers, SNYDER and QUINN said they also received UAA from ROC /RIC, a company in Orange, CA. SNYDER and QUINN said they did not believe ROC /RIC was licensed in California to handle DU. SNYDER and QUINN said they were also solicting information from a Milwaukee company by the name of Cerac as a potential supplier of UAA. SNYDER and QUINN said that when J. LARSEN informed them that he had moved to Wyoming, they were not sure whether he wes working under a specific or general license. They said they were also not sure wnether J. LARSEN was processing the material in Wyoming or Utah. They said they were aware of J. LARSEN"s diffi-culties with the Utah radiation control authority, because Virgil LORENSENI, a former Hysol employee, had made to visit J. LARSEN's facility in Utah. SNYDER and QUINN said they did not know who supplied J. LARSEN with DU. They said Honeywell had approved J. L/RSEN as a !,iplier due to the quality of his UAA. They said they were not aware of how J. 1.ARSEN disposed of his waste, nor were they aware of any high bioassays for J. LARSEN's employees. When I questioned about one~ of J. LARSEN's UAA shipments to the Hysol at Seabrook, they explained that in August 1986 after they realized they were exceeding the 15 pound limit under a general license, so they asked J. LARSEN to ship to Seabrook as a separate location. This report prepared from notes taken during interview dated March 14, 1988. Y M H. Brooks Griffin Invigtigator Offi.ce of Investigations Field Office, RIV M Case No. 4-88-002 EXHIBIT PAGE / F .J

dy, I i REPORT OF INTERVIEW WITH KEVIN JAMES NOACK On March 2,1988, NOACK, employee of Larsen Labs, was interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg in Provo, UT. NOACK said that he had worked for J. LARSEN for a' bout three years processing DU into UAA. NOACK said that he began his association with J. LARSEN by responding to a note J. LARSEN placed on a bulletin board at Brigham Young University. NOACK said that for about three months, he worked for J. LARSEN doing odd jobs around his home. NOACK said that eventually J. LARSEN's father,. Paul LARSEN, showed him some of the processing steps for converting the DU into UAA. NOACK said for about the first six months he worked processing DU, he worked with Paul LARSEN placing the DU in acid, introh cing ~ bentryne, and dryiag the material. NOACK said he was aware that the State of Utah had suspended J. LARSEN's-license in Utah causing J. LARSEN to move his activities to Evanston, WY. NOACK said he perfomtd the processing in Utah, and returned the finished UAA to Provo. NOACK said J. LARSEN tested the UAA and packaged the UAA shipments to Hysol. NOACK said J. LARSEN had never given him much instruction about the hazards of processing DU. NOACK said he had taken it upon himself to do some reading and questioning professors at BYU about the dangers of handling the DU and also the hazardous chemicals used in the process. NOACK said that he was careful to wear a mask and gloves and coat when processing, and said he tried not to breathe the-dust when he was grinding the UAA crystals. NOACK said there had been a six or seven pound spill of UAA at Evanston, and said that M. LARSEN had been present at the time. He said they used rags to mop up as much of.the spilled UAA as they could. NOACK said he assumed that the subsequent high bioassays were the result of this spill. h0ACK said that he had on various occasions given urine samples to J. LARSEN, but he was unable to say when, how often, or how many samples he provided. NOACK said that over the years of processing, J. LARSEN accumulated about 100 buckets of liouid waste which was stored at J. LARSEN's Lindon, UT Du11 ding. NOACK said that on two occasions he had boiled down the waste at the Lindon building. He said UAA crystals had formed from the boiled down waste, and he added these crystals to the material being processed at the Evanston facility. He said that on these two occasions, the amount of UAA crystals he obtained from the waste would have been something around 15 pounds on both occasions. NOACK said that when he was not processing the DU, he still did odd jobs for J. 1ARSEN in Provo and woodwork at his building in Lindon. NOACK said that wh o J. LARSEN was forced to relocate to Wyoming, he had transported the equipment to Evanston. NOACK said that his brother, Bruce NOACK, had worked i for about two weeks in Evanston cleaning the facility, but that Bruce was not involved in the processing of the DU. EXHIBIT M Case No. 4-88-002 1 PAGE L E L_ __ -- _

NOACK said that each time he completed the process, he transported the UAA to-J..LARSEN in Provo, took the waste to the Lindon facility. NOACK said he did almost all of-the processing of the DU. NOACK described J. LARSEN as " lazy", and said 's. LARSEN did not like to do involve himself in the processing. This report prepared from notes taken during interview dated March 2, 1988. 0h h H.BrooksGriffin,Ineftigator Office of Investigations Field Office, RIV 4 \\ 1 i l Case No. 4-88-002 2 EXHIBIT.W PAGE J U

_ = _ _ _ _ _ _ _ =,:, REPORT OF INTERVIEW WITH MICHAEL LARSEN M. LARSEN, son o' f John LARSEN was interviewed on March 15, 1988, by NRC l Investigator H. Brooks Griffin and NRC Radiation Specialist Blair Spitzberg en the campus of Cornell University in Ithaca, NY. I M. LARSEN said he first worked in his father's business sometime in 1985 helping to assay UAA for metal cc.atent. 'M. LARSEN said he first became-A involved in the processing in late 1986, when he worked dissolving.the metal L in acid. He said Kevin NOACK handled the more dangerous parts of the process. M. LARSEN said that during one period he worked at the processing for about a five and one-half months, and'said he believed he was competent to perform the = l c uplete process. M. LARSEN said that since that time he had only worked occasionally helping with the processing. When M. LARSEN was questioned about his personal knowledge of NOACK, he said that recently, March 1988, NOACK y a diagnosed as having epilepsy. M. LARSEN said that NOACr had always had difficulty in being on time, keeping his schedules, or showing up at all. M. LARSEN said that he and NOACK had not gotten along tnat well. When questioned about NOACK's exposure to benzene fumes, M. LARSEN said it had been necessary to use fans to try to direct the fumes away from NOACK. M. LARSEN said he had not been involved in setting up the equipment at the Evanston facility, and said he did not know where his father stored the DU metal slugs during that time period. M. LARSEN said he was aware that NOACK-had transferred the waste material that was crystallizing.into UAA from the Lindon building to the Evanston facility to finish processing the crystals. M. LARSEN opined that the reason that some'of the UAA shipments his father made to Hysol exceeded the 15 pound limit was probably due to the fact that crystals from the waste had been added. -M. LARSEN said it would be possible to complete processing from metal to VAA-in one week, but'said if it was done too quickly there were sometimes problems with purity. M. LARSEN said it usually took one and a half to two weeks to complete the process. M. LARSEN was questioned about additional urine samples taken as a result of high bioassay readings he had shewn following a spill of UAA at the Evanston facility. He said the urine specimens he had given were taken at the Lindon building, and said he believed the high readings were the result of contami-nated specimen bottles. This ' report prepared from notes taken during interview dated March 15, 1988. Y !l-- H. Brooks Griffin, p)destigator Office of InvestigaMons Field Office, RIV EXHIBIT 25i Case No. 4-88-002 PAGE I F

~ I 1 l REPORT OF INTERVIEW l WITH SALLY LARSEN On March 2,-1988, Sally LARSEN (S. LARSEN), the wife of John LARSEN, was f interviewed by NRC Investigator H. Brooks Griffin and NRC Radiation Specialist i Blair Spitzberg in Provo, Utah. i S. LARSEN said that her husband kept her informed of his licensing activities related to the production of UAA, and said she was generally aware of his day-to-day business activities. S. LARSEN said that her husband had first become involved in the processing of DU in Utah in the late seventies. S. LARSEN said that after the State of Utah suspended her husband's specific license in Utah, she helped her husband relocate to the quonset hut in Evanston, WY. S. LARSEN said she was aware that the waste generated from the l processing in Evanston was transferred back to their building in Lindon, UT, and stored in drums in a Butler-type building. When questioned about J. LARSEN's method of operation, S. LARSEN concurred that her husband attempted to keep the overhead of his business low to maximize profits. S. LARSEN explained that in the past several years her i husband had learned a great deal more about the potential dangers of the 1 procest. She said her husband had been upgrading his equipment, and had become more conscious for the safety of Kevin NOACK. S. LARSEN explained that her' husband had been reluctant to make any substantial investment in laboratory facilities or safety equipment, because it was not known how much longer Hysol would issue them contracts for UAA. When questioned about her knowledge of NOACK's work in processing the DU, S. LARSEN described NOACK as kind of "dosey" and the type of person who had difficulty maintaining a schedule. S. LARSEN indicated that NOACK did most of the work at the Evanston facility, and that her husband allowed NOACK to set a his own schedule. S. LARSEN said that she was aware of her husband's past difficulties with the NRC and with the State of Utah. She said it was not her husband's intent to avoid regulation, and that he was prepared to invest in the equipment and take the steps to bring himself into compliance with the regulations. S. LARSEN described her husband as preoccupied with other hobbies and offered to involve j herself in his licensed activities if it would give the NRC greater faith that her husband would comply with the regulatory requirements. i S. LARSEN said she was aware of the fact that bioassay information requested j by the NRC had been damaged in shipment. S. LARSEN said she was not aware of whether her husband had continued taking urine samples after placing this shipment in the mail. This report prepared from notes taken during interview dated March 2,1988. Y%, H. Brooks' Griffin, Inwystigator Office of Investigations Field Office, RIV EXHIBIT.26 Case No. 4-88-002 PAGE / or i

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UNITED STATES y" NUCLEAR REGULATORY COMMISSION' OFFICE OF INVESTIGATIONS FtELD OFFICE. REGION IV [ $11 RYAN PLAZA DRIVE 50lTE 1000 ~, y ARLINtiTOid. TEXAS 76011 STATEMENT (Continued) A F4er ma <us oustea, T sfi// ),ada noodiac order-M UtfA u s.d>-n. H u e l n,, m a." Ale w 6eirk. so r I ma W he) le Drbees! k a &+/br }tol dro le kbl urban un I l 1 deu/+ - i ', Atevada becans e,

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1 n,~ oleh2 L encess,%. TI, e we W ' UAA Ill.9 Ecuads. +$ /4. <oI. Y h d 'nor-C>rmd/ H,e n wemta, in llevan ~ & + z~ umu(A at-M Gue lah ' +L, n ns., A,as J & nA w~ -iss. J W %,a a3%- & sus owsiva.o P - tab, /te eue re sskek-f l Brac e ca erten aoI #"'65?L ulen A AtRC 4en.d,uat4m ia k r orc +c+;ox oF & crew: stew's oF l i ,c s d a c /c o d F % e o n AIRC naverJ treeoa l ela kd 6 neseLion oF tv /, n a,uad, o f waree s, 4e rsa l c4-ene kna or 14o ocuads V leader u oa r. T*hev talkra,) &+ th /w .a 'l1,.%% wed co e /s~dbc. so th <. Fua + L+ r 1,ad u >aa. 4 n a le e., / ' io U6 t, Asof ico osusA me un e w %cnin did xe+ m s A% le ~ v /e in L " 2 ' - ! e $ ! d a 1 a n u,m a. _. M_ # I 1 vi r, m m 1m _ z ,1 ra h4 T,auaru ee p-el a G.G-a. ca i W7. I G leJ h, Eurus h l fslunnla onci leo ne e ' s uosh + L.+- h u s e 4,,n,e n l 4l.=. d !1 4 f d nr.n su n. la 14kto o.%.ee kr Y L%es J ~~ oL,;s~er t E L s te-

w. n 16'd,uwh sVI2. L //k J ur.,x.,a n.

Er a is 4-fido weeks b 5.w Aie,e ir a.,oloupe. < va,/ I R.e te /, a, / Orcem%s -a 2 7. A nd? Sfl 'e W VA'A 'nol/ sa R hr. u ~ 2, Ihn Y A;.,42 & lAn >t,, ' A soI. I h<d chose'v Euksha os % wsvk he G G kso n cacx a s rF w esh leo m^les s w a vi oed O b if taas An /W /h sh. I ' ' A ad % ~ ardO' % UAA % 5;,xcLi A., ,% _ ~d y p Initials cf Persen Making St.itemen: h EXHIBIT ( )

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a h UNITED STATES j .f[ - NUCLEAR REGULATORY COMMISSION h f-OFFICE OF INVESTIGATIONS FIELD OFFICE. REGION (V g. 8,1 RYAN PLAZA DRfVE. 50tTE 1000 p ARUNGTON. TEXAS 78011 l-L STATEMENT (Continued) .d,;noad A.soI k n A sa A sol u s-a A, o/ ace, o nde'rs w o' H, Ae. askan f' r 3& o e-Cs dafid /s+s. v /h a iblo m,rv, 2. /M7. s 4;p A w s ore 6 2/w M m %oks e. 4 % 30 Acwd' e+dev. a A nae k lake so Mse-~ cr i4CO r <h:oood 30.x u,2< A un9 L /L<ol. 'id/wess i4 usu' ' flu hkos A e '+ a m k k n.ake 'W IMA

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a WJ lu ; ', lo <, m m a&L,i: Sed /v L-14kh %'. = LS wh~ A L waste ' dries mL ~ liv. UAh crs A is n .-> r <c-a u es adeled t({ese h th <L:hwk 4 ILul l /~ 0 1 AC m+ no uAA <l,:s w h 4 L e/ We 26 24 muads I, o' Fe kaes n i M 97. Aoel 3 4. 4 2 do use/s A ce C' L 1977. sa i A uf sh Almed a Niew t/n rk" sno er% Ne em a - fa asboss 1_gic,Js s F /JA A mod!r- % la 30 ness /s dedo /k n*l 19

MU7, bdf Ilhil Lorea tief oF Alai A/d ne

+(le+ Aleu', l/cek o fEon% had alues d,u / ser,.,;<s,o v fe rec eive ' e-o A enke H,4 3enau%A "i.v sLod %<~ /W1. A lso ' on A wl 2?An, T r<veixd 6rs+ MD Anloled a n.6 s C,:dne.d 6, Aluelear . n, u /)1d h.l < 'T %,_ ja A l a s s c4 e (1 u a N <, w f ; 4 m /C~ma,ve/s. 19 D. T rf r_ eised Ar, ae. < ulo sea oest < /,;/n,sof s 'e P /_5~ fa M de w C, P~re w Alue leos" Me h k' e,,e HNe G //ows. w A h! g / Initials cf Persen Making Statemen: ExHIS ( ( )

. - g# "#'%, UNITED STATES I f' 7, NUCLEAR REGULATORY COMMISSION OFFICE OF INVESTIGATIONS FIELD OFFICE. FtEGION IV %."..../ '" "3"Ja'%^."TEIk'sII " STATEMENT (Continued) Ala rek 27,l997 June 2G Seele.~,ber 9' ho r,'l al % Io /7 LJA her 23

• 1un e 2

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• 7 A M 4 A I

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%.5 Akkber M 1 21.S3 4is, f lece+ love 20 2 34.9 4c,. T T nsli, 41, 4 ea som e cG Hose sL:nnede H,e assa ve d e ures nakral exceeded 1%uuds h&'W<a tee i.shes alren Z added wac k e s- < k l< Ww m u //a d s %,'li k Durlxo 19[r? He oak pm disues al,o udced fiv me were' s' a. Mrek.el. ke wh L ek?<MSBcuce Abkk. o ~ Brbc e7'^t 'TC+ 'wolvec/ ia M 'orecVss w s-J noin ,,ocscLTT L J: 1-s e! </w ea 6+ 4 Ka Aw F.,4;I,A / (f.4 r Initials cf Person Making Statement EXHIBIT ( ) /- cece 4 1

i. ., j q N 4 - UNITED STATES j'f t' NUCLEAR REGULATORY COMMISSION. 3 f OFFICE OF INVESTIGATIONS FIELD OFFICE. REGION IV 'N ~ / = = = n a," n e r - STATEMENT. ..(Continued) Oa ' Alo veder 10,1977. T reeeived av kRC en Firn +nw

sFoekoa le (ke '/x ske4 hic m e-h>

ewa t-see to+ e F :so u re s ma h n% I, Th/ NRC ar //< w ed m.e Fni Aleven her /0 PhevuaL Alo n Lor i2 /9 71. h> % t, oro cess /m ,,, Jem,ill, on boe &iw ri /9fr7 7 FeeeiseJ 'a vc HUr An?c. ce.ofie & ~ <# e,c b /e Ver aintel oIked a k F%is4 x,ree e ss,'a, u 4.6 ren:ned' e F-the s.a.kcral. r n < a0+ -, sw 2-,, A o t 6,,i o m n i u s,,n /*19 7 avd f % ucceek 1, a do ^ o,,s/;es fh e R> c ' ai A whc sore; fie lic Lc,e Per h,d/~;"e oeud!aa. r "e accel L ha x ko e, edees' Fe c ' t/AA FmL I4u se I. Gn! A)cee ber /9R ki & r,resa.A w oliio oF d.' oh L/ m o m A < k n A4c/w seu rr e /h a (s. 'buc:no +bL f s,e a nod esF 6,e r 6., med k chu,.,ec/ Aus/6ss .va a s oF orw. r Lon, &l G,,, msw, 1 o c.com AsInca kes, awed 7tirm se ler-J-c hdoWr}e w, ab el T ko ae af ' u se d ' gna 'eb r, oar e s 6 ' re e e is e. .-Jo o 4 fec/ 5 ro n 4, ,,e. ' <t,,M unk Au e,'u, L% a r,cel inos o %e L a:A s' n a.,,o s, m / wt es, corm k es xor n ee 4-leeu ree ie kn-c) >,,4L o ea e s oErv,<,a+rl,oL +> % j. / ~ / / / fibn Ahb?mApr IR8f., k 9%e o rts007 O via Aleae N, kaure. k)ru e. W $vr kl I We k d~s e <> 0 ft NO OM/m wt,,a eo s al,o k us wer-kp2 &r or,- re(c~1kJ/ ~ 4, %, b - ole ole led a ravtn breeoa,c,;m; A u.c i:oo s. c .i p. r / Att few eP 1% de olebl u rraii an sL:snest r / / Initials cf Person Making statement [ [ EXHISIT ( o,. nh, ) i

tO NJ UNITED STATES NUCLEAR REGULATORY COMMtSSION g' j i E. ' j OFFICE OF INVESTIGATIONS FIELD OFFICE. REGION IV \\;7,,,/ '""Itais.1J!s d!!" S 1 STATEMENT I (Continued) rece1 ved Fren ALdse hek k m>o e e rece ved Fue ?n cloupes L t.A/L Acm e Lls i:0 m e-ha me EmosLa '*MN3&4e to,T'9'"'Yh% '+ A%w t ece u 's in f Ana, hat's hdie h < s 4 /enGe. A.)u.,,Ler, locou in &s s>s.sessh n cf 'tL Eh"/l Wei w xs a F%e4-G me so el r cc~ owc kJ Ain w,+4 a srv <xc V e P ' hee r. Tarro!ced % L+ 6 u u.- m. m iu~. / f~ (da_t v>eed A tc ve b e r l '1WG e a,/ Ti,op /07 x w, in L cruees s o V.6n;/ ic cLa re -fie a c+i ve 1 i ades h a fIcfina, avch i exc h eo/ isca k X-1 .m u -ILe ws k iA 17 FI F% -Fi ve EiL shud. r ' ecoh&d wr% cwel %'oc Porrell ~H+e <-Jn-s fe, u,o; a;L oV M-6 h, < wc) I c>b-bived e, s A-t' c-4 ur,'a I 'o F fAe m s /o a /- f4 e e,o r-,4 C r f,a lese) rad to acL>e klas le h u n% ( sMe sxa r- /eKee k Isa<),latos 6 -c1v. Y~ h,. a w e k r horn a n, n u ( d e,/ si & J Hoa is A ce a +,~ s ! n. des ba;/dJon / b u n'm RP7 resw bek hadled Le +rw krx d on &' Fr~,. Ewi+ La 4, 1/sdos. Du riae, ~l'187 Y J. d a f d te a - e J r u A c. n c h e wd', /-e. /w o n n n ner % + W f % e ib s M, + is Dacho. 75 / + u A%wla deo Ke via Au ek 6, TW e,/w ,n a // isca fe. d+' A ioslov, ~ s -r r we k es sfere s //a~~de F r- ;f-, g. U*l;, e-f f g i - C - g ]g e e,/ w we e n c, b de. ] %, n + m ut hone. 1~ cl,'.d assc<s um rce Wc4 &n] 1'O c< tvrush o Y e M9 n c'" & n c r b.>,c W l / l EXHIBIT ( ) Initials cf Person Making Statement 7 u n SNa = l

i e UNITED STATES j NUCLEAR REGUL TORY COMMISSION L }" g ,,,q E' 0FFICE OF INVESTIGATIONS FIELD OFFICE. REGION IV $11 RYAN PLAZA DRIVE. SulTE 1000 S, gf j ARLINGTON. TEXAS 75011 a g STATEMENT j .(Continued) p,, hcw e bec e, s s $1c f is tJl we Z d'so s n, u e'e.c,; m n gh yonbec14Ki.r ku e ocT nM*y 5"YWhoY Swys n't #y swm e. na Ain La-a.1977 % Mc seu f me - coo % b.c & i x L.o iAr re-r, nha. hie a u-C,r /htre Mw A av;mJ A ~,, hnck, 'ah -lr ff 1% ein< t(, e Dees Lee 7 ' Mr>. l en% e x + c Je dee u: +f ~Hl.e Mc r a %d' e/ >.e % H-4ka &;-L r :aGr,a.J L DR c e P th. Aice.<s~ ow th % kPc 'de m #2 s Adif,'esa f ue.Je hbose ex Gr Afib, s A%;s

u. d m a se f F he c -. - < A & 1ve4 fed-vas

& } ) ? c u._ k - c. cedi r~ 4% lC oc4% l Ac ,.), k/ t%c /w Tr. IcG7 - e, friv.c th e. ade/ ~4'e uav/ k a sse.,- n,,, n + ;w wL. l.. ~ / n,' 1 % - e _ b.e r M /W7 T 4(w L,.>aJ Blate % A h m ef % AIRC,-ael es NY C~r-ex Vor s,'N s a P 4,', ',e 4 Se A le aw $,},o r o o k, n : v d %.-iP % & < 6.x % ; /. L. bu nd-m e. %-h Anc, askee/ s,Z J e n +(,, f cow vera L, reau ec, led hice.rr.~ %>c c. (W m r' 4./d Ar i <s, % h ' e, - +h e wsec hG /(av ac A,'a-L P ' !: 2 M i4, ~1 (4 ~, J L J &, _ L / L _.',, f "' - DCt' ~ A,4 G s h u + Z d,'d m e A m A ? fAeu int-h.a L - / / / d Os 1% cn bw "'5 /, l'757, & a :Ar cec ~/ e ew dtb a - cz,x % m ,.F ued u /Zfkr e e, Ien* a me -k e e c <,c - e: // se & %, n.d h eA& ie nidAha 1,, e,we m,, s / m % - e s,: M i m .a,o d s, w (F T w , !wJ., ce Lk-/ c, sin- !%,n /h;A'e sac l m acei P,,a' lh en har-2k, /18' -7 -T' 4c> A sedd,'M,1d 'u eue w ~ /v s %. huh ac</ nus 6e I f +!ta Acm e elew, T/, e ' cc Ernc~'d'rr. e f ee 'bbe feui&r Fi,r'4& w mucc la, I + C, c d X n. s f e ! 4 i d e o ds, u so lP Initials cf Ferson Maxing Statement L./ s EXHIBIT ( ) / Dece 7

[p*# 4, UNITED STATES NUCLEAR REGULATORY COMMISSION ,n, OFFICE OF INVESTIGATIONS FIE LD OFFICE REGION IV. ~ , 'j 3 til RYAN PLAZA DRIVE. SutTE 1000 a j ARLINGTON TEXAS 78011 u g STATEMENT (Continued) em % ve ePe,. cw H I % o read ws G-ll he leus e ~ A is nd 'r Lk o-caA, sLi /e s- /hh sn %n s tur ao %._ !%,,, c

77t,

+ ~ LsJ J 'w + maa s o te e L ~sozca.u s1,c 1~' of awla-%u ed -b kiwe, -su.o les % ,m uge IF n' /M4e a,I. (W7, Ao~,. c e T k.m :'n 4 J 4L>u' < ead,w nJI Ada+ -s+ 4, Ao- 'ne nons.Aa6 m +da. .'A/ nW"E e,MW E n 4 & i.v%u' ~ M & uex /w ofor A~J fedkel M su bsan u ed k+ ~ro n d e: m LilL.-.& M '? w % ~_)+cA = 1 hLzt_w,, Al~LJ_ T cgAed & m,Z),,,f, < o d na e-a .3 %,+ -sa-c/e c,' A : n r c/W n m4 rem-+ % a wsu /k A, L 2)AC,hzus, T belie &/ %,mM Z d:ct lal -sevel ev e4re I s r,/es A, L /a f> m ec um th:/ h,. s N k w.~-- + 6 - ~Jen4 &L' MJ l % fa 6.- a sobed : 4 c,ws bas'/,. oo % u a A, h 19W ~ r eesu.eJ'w,sh- ~d ~ & sa --i, ft , ek weia w s&, & ddke asc/m use it R>r %.m/en'. i od ah O.a %n'V5E 'n t L, ce AA k /o w m 115. 1 't.c.t a f + /ce uriae 4,,,,,/n on L a ru htt, ho.- ~ a Z c/:2 u + L e %dwer ff,u ec>rk oe rs. .7 onal,1aJ cos In,I s slec .i % W, o L u dt, Mz'- e.sd n ti, w~les 75 e' inchefs.. o w ~l-- ked L - uk ' s tL c~ c; ce,c.s ~c km ~ g L,b w 4 m - o s % h ?. / \\ N in f / \\ IL F - l l N WJ s 41 / 1 N EXHIBIT ( ) Initials cf Person Making Statement Pscef c/ '

l 1 UNITED STATES y ;.., .{ NUCLEAR REGULATORY COMMISSION ) 5 ,x OFFICE OF INVESTIGATIONS FIELD OFFICE. REGION IV N;7f,,/ ~ '""UMcTo^."Eis'sII" j STATEMFAT f 1 (Continued). j N \\ s \\ N NcZ Mw M '%A N N N N N I have read the foregoing statement consisting of T handwritten /*eped pages. I have made and initialed any necessary corrections and have signed my I fully undegr tand ard have discussed the initialsatthebottomofeachpag$etvceds 6h FM,0. This statement is statement with Investigator W-the truth to the best of my i og ne f. Signature: Name Subspibedandswor to before me this Fred day of e47cre/4 1982 at [ratto M64 Investigator: Y bsdho d[ 1 Authority: Section16hAEA1954asamended 5W'*#/4mM N'$'W"EN'6 Witness: a ' # N / Title N Initials cf Person Making Statement EXHIBII ( ) f Pace e of 3 -___-.m_ _--_____.__-m____ _m _.m._ __m ..__mm

s.ce-cer 16,'19E7 3entlemen: inis letter is to confirm 't e conversation cetween myself ena fer.:.illiam Fisner, USNRC, Region IV. Last winter, I crocessed 6 los of' metal in Nevaca. I chose an isolatea location, in the Nevaca desert, anc workec off the back of my 2 ton truck. -I was extremely. careful to not contaminate the area. I was forcec'to- .sork in Nevada at the time, because of the great need of U.A.A. ~ catalyst for tne Phtnalic Annvarice plastic reaction, which is-snut cown if tne catalyst is not present. The-State of Utah had cronicited me'from' processing any material in Utah, so I processed this small. amount in Nevaca, uncer another jurisdiction, so as not to be in violation. As for California, this was over 10 years ago,-anc I manufacture my enemical on the back of my' track, on a vacant.Diece of property in La Crescenta, anc in various isoletec locations in the cesert areas of. California. at the time, my company was very small, and I was of little concern es a neeltn nazard. . Sincerely, 7 /

.'.. /. <<. w.

John P. Larsen i. 1 1 L N d I 4 002

A ThermoAnalyticalInc. l .htAINorcal Mallmg Address 2030 Wrght Am p_O gon4040 bchmo% CA 94804 0040 RecnmoM CA 9480GO040 (415)235 2633 November 25, 1987 Ref: TMA/Norcal CN 4438 Mr. John P. Larsen Orion Chemical Company 3853 North'Sherwood Road Provo, UT 84604

Dear Mr. Larsen:

The results of the five urine samples we received for analysis on 19 November 1987 have been completed and are shown below. Sample Total Uranium pg/L i 2 a [r # N ~ __ haber QPPAM1AW/ @M 53 1 3 izJ5 N.U @55) 6, @ 41 2 2 NN ,/ j hpd 26 1 2 N .q 9 ~ 66 4612 fd3 .f' 66 14 1 2 We appreciate this opportunity to be of service. % 32 *,,, bk5 0 f[ W ry truly y:.,urs, 15 fxM 1 >i f .u 1 6' Marvin P. Hunt p p.4, /.:/,,pV I b, Program Manager .,[' f TMANorcal Corporation ,,...'t . f.o f,W ] ( ', MPH /ss 'JWp - .gk y p <! 0 V M_. 4:188'-002 / -?/-

TMA Thenno Analyticalinc. M^ No' ua nosy scoreu l u : :< - :-.e.*

• oeoay:

a -,--.:..u x :u eicn-eac ta 5:e:+:30 e e ..:'E 23! 2E11 December 1, 1967 Ref: TMA/Norcal CN 4438 s Mr. John P. Larsen Orion Chemical Company 3 953.Werth She.asted P.ead Provo UT 84604

Dear Mr. Larsen:

The results of the 1987 have been completed and are shown below.five urine samples we rec Sample Total Uranium Numbe.r pg/L 2 2 a w 12 2 3 ~ s 4 M M Class 22 1 3 h 26 2 3 q MM 1t3 Qu (:Kd 4523 \\ We appreciate this opportunity to be of service. Very truly yours. rija. ? d Marvin P. Hunt Program Manager T.%Norcal Corporation MPH /ss .. _3Cl l l 4 - 88O 02

~ ~ ' ~ ~ ~ ~ - ~ ' -~ <gp ./- a Thermo An: lytic:/Inc. ' (N t$ n' v i .a pg n\\.0In.,- y t MMorca! I ~

• ~^'
• unaungsacress x30 w.gns 4ven e e ) 8c, aoao M

u 4,cnmone CA 94804 0040 Rienmond CA 94604 G04C gg / j ..t's :35 2E33 = i U December 23, 1987 J Ref: T!%/Nercal'CN 4438 Mr. John P. Larsen Orion Chemical Company 3853 North Sherwood Road Provo. UT 84604

Dear Mr. Larsen:

The results of the three urine samples we received for analysis on 9 December 1987 have been completed and are shown below. Sample Collection Total Uranium Number Date pg/L ! 2 a 6,6 12/8/87 31 3 66 12/8/87 8814 M.'M 12/8/87 10 1 3 L'e appreciate this opportunity to be of service. Very truly yours, ,$hl/% Marvin P. Hunt Program Manager TIMNorcal Corporation MPH /ss 3_1,. A I - -l a x' 4 002 l n.

• "Is ENEBSY ENERGY LABORATORIES. INC.

[ 148084I88/f8 e e ses 3::s

• se

=c ce= ten s- + casera==sesos

• o=rines ins es t 1

f LABORATORY REPOR1 - BIDASSAY RESULTS f a C1 ent: ORION-WRANGLER CHEMICAL COMPANY M *f[4 [ hPI'((jp;g- .:v:m:t a! Date: 01-CT-SE 't i i La e Pece ve:: C1-CE-SE4 po#' [, )(,f ', gl y Assav Date: 01-06-6B (y b' d v\\ ..G e:O r t Date: 01-25-8E gi N d M, %.f [ L MN me: Nc. Sam: le. i. o. l-LL,. s.g.me. l e ca r e t ge;ans ugei l 65-21:1 6 f2-28-67 12:00 3 ".. e . 'f, EG-):e2 12-31-87 12:00 11 55-01e3 L2-28-B7 12:00 liiE. 6 ( GE-Ole-L2-31-87 12:30 56.5- 'g l i EE-Ole" p1-03-88 12:00 2EE. ~" Duplicate .isE in "C'E: Edm:les rece:ve lea 6. n; - p OC ADie samDie cCntama naticr :r. celle: tang specimens fecm slastic cags. INTERNAL QUALITY ASSURANCE CHECKS: Ut: ateev = Desetnal Cere. h e_ yg.;..(e E,A u ay,f g ng, PA:ese". 99'I ug ug, I ce:. i. EE-01:2 en.E 20 9 !.01-E: E;an. 'S E* 15 15.1 E! 30 29.e N *. E s 54 cles 5: 11t anc ana;s:ec tr. a::croar.ce wite. US-NRC Fegulat-r. Guaces *.1" an: E..: E. 1,. cr.tatace, cer.ce r. ng emovat.e a;cr.a c:r.ts :nati:r. At tne ; ace.ratcry ar,alysis .e . a e e. s :s attar.e: r -.:5 re:r

3. 2

/ _/ 488-002 i

9 ENEBEV i ENERGY LABORATORIES, INC. P C SCE 33tt

• 23e NC CENTRA ST
• Casets wy 82602e pMOht (307 333 0513

{' LABORATORY REPORT - 810 ASSAY RESULTS i Client: ORION-WRANGLER CHEMICAL COMPANY Suomittal Date: 01-: 9-88 .{ Late Received: 01-20-88 j Assav Date: 01-21-88 Report Date: 01-25-88 Lab No. $ amp)e d.,D .F. F.amQ]e Da t_e. (U[an,jum3 ug/l 85-028s 01-10-88 12:00 <5 88-0287 01-10-88 12: 00 <5 1 25-0288 G 01-10-88 12:00 <5 Duolicate (5 SE 0289 01-13-88 12:00 <5 PE-0290 01-13-88 12: 00 <. 5 88-0291 01-13-88 <5 .s INTERNAL QUALITY ASSURANCE CHECKS: j i Laboratorv # Orsoinal Conc. So:ke Value OBS/ Assav Cone Recoverv ug/l ug ug/l dec. % 88-0286 <5 15 15.0 0.750-1.000 88-0289 <5 30 28.5 0.814-0.950 J ELI Elank

5 EL1 15 13.9 ELI 30

- 31.3 l NOTE: Samples split and analyzed in accordance with US-NRC Regulatory Guides 4.15 anc 8.22. Information concern 1ng removable alpha cent. mar.ation at the laboratory analysis wo r i: areas is attached tc this report. 3'3 i 3 \\ l 4 ~~ 8 8 - 0 0 2 l l 1L-_______-___-__-__----

9 _j 9 -l 'I ] SPECIMEN. - ,l 'l RESULTS. t/] g /": 4. % as3 g. '*.. ' REGIONAL MEDICAL CENTER % m UTAH YALLEY m V I COLLECTED.- /.h - /-f ~ DATE & TIME DRAWN TECHNOLOGsy* DATE COMPLETED - u.ie,. MISCELLANEOUS REPORT - OUTPATIENT l,

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t l ) UTAH YALLEY a b. / REGIO,NAL*WEDICAL CENTER spress.ueen $( C l LOLLECTED 3 l@ -3) 9 / [ DATE & TIME DRAWN q ( TECHNOLOGIST: DATE COMPLETED u.ie t MISCELLANEOUS REPORT-OUTPATIENT l \\ COLLECTED - f DATE & TIME DRAWN TECHNOLOGIST. DATE COMPLETED u.is t MISCELLANEOUS REPORT-OUTPATIENT

t 1 1' MEMORANDUM FOR: File 99990004 Larsen Labs / Orion Chemical / Wrangler Labs FROM: D. Blair Spitzberg, Senior Radiation Specialist Nuclear Materials Inspection Section l

SUBJECT:

BIDASSAY RESULTS OBTAINED BY JOHN LARSEN l In m ponse to a Confirmation of Action Letter issued on November 12, 1987, to La*2en Labs, Provo, Utah, the licensee submitted on December 2, 1987, the retuits of urine bioassays taken during the processing and clean up activities performed from November 12, 1987 through November 19, 1987. Of the 10 results provided, 7 were above t'1e NRC recommended action level calling for followup confirmatory samples. Mr. Larsen made some reference to his suspicion that the cause of the elevated samples was the contamination of the sample containers. To alleviate this problem he had purchased plastic containers f rom a pharmacy. Three of the 4 samples, however, contained in the plastic sample bottles were also above the action level. Mr Larsen agreed during the December 2, 1987, meeting in Salt Lake City, to obtain more followup samples. On or about December 30, 1987, I telephoned Mr. Larsen to inquire about the followup samples. He sent the results overnight which were received December 31, 1987. These results again showed 2 of the 3 samples obtained on December 8, 1987, were above the action level. In addition there was a handwritten explanatory note attached, which was signed by Q M M explaining the elevated level in his urine was possibly being caused by eating food which had become contaminated during cleanup work at the facility. ( Upon receiving the December 31, 1987, bioassay results, I had reason to believe that unacceptably high uranium intakes were occurring as a result of S. M activities. Therefore, Region IV issued a second CAL on December 31, 1987, requiring, among other things, that Mr. Larsen obtain followup samples from two individuals by Ja6uary 1,1988, and every three days until the results of the st.mples were less than 30 99/1. It was specified in the CAL that the samples were to be voided into containers known to be free of contamination, and copies of the results of urine sample measurements were required to be submitted to Region IV as they were received by the licensee. .m Af ter not receiving the rewits in the time frame I expected, I called Mr. Larsen on February 4,19b3. He stated he had just received the results a couple of days earlier and he would forward them. The results received February 5,1988 showed samples obtained on January 10, 1988 and January 13, P RIV:NMIS C:NMEPB DB5pitzberg;ap WLFisher A /l*7/88 Jil7/88 FRIVACY INFORMATION FOR INTERNAL USE ONLY l 3 4 '88002 i

l L L i Memorandum to File ( 1988 which were all less than the action level. Since the date of samples did not begin with samples obtained December.31, 1987 or January 1,1988 as-required in the CAL, I telephoned Mr. Larsen again on February 9,1988, after conferring with D. Powers, R. Bangart, and D. Driskill. When I inquired as to whether he had obtained samples as required, Mr. Larsen said he had but that the results were so high he couldn't believe them,-and therefore he didn't submit them to us. He claimed again that he suspected contamination of the sample bottles and he had therefore requested bottles from his assay laboratory. These he claims were the containers and samples of January 10 and January 13, 1988 and the delay was in waiting to receive the bottles. I asked Mr. Larsen to tell me the results of the unreported samples and to send us copies. The results were the following: - [MN 12/28 35.6 vg/l I 12/31 161.0 vg/l g' 12/28 67.8 vg/l 12/31 58.5 vg/l 01/03 282.0 vg/l .From the information available I have concluded the following: 1. Mr? L'arsen did not comply with the December 31, 1987, CAL by reporting the late December, early January bioassay results as he received them. 2. It appears Mr. Larsen did not compl) with the December 31, 1987. CAL by suspending bioassay sampling in early January before results were less tha.n 30 vg/l as specified. 3. Failure to report the unreported bioassay results appeared to be an act of withholding information for which the possible motive could have been avoiding a delay in his receiving a license (application pending). Furthermore, the sample results he did submit were obtained well after the time period that would be useful in deriving potential intakes. In this sense he may have submitted these results because he liked what they showed as opposed to the earlier high values. 4 Mr. Larsen's activities have a history of a) elevated uranium bioassays and b) excuses why the bicassays were high. He has claimed shortcomings in his ' assay laboratory, contaminated glass containers, contaminated pharmaceutical plastic containers, and ingestion of contaminated food as reasons for the high bioassays. I suspect as an alternative, that Mr. Larsen and his workers have been receiving uranium intakes as a result of his activities. Since February 1987 Mr. Larsen has obtained urine samples from four individuals. All four of these have at one time or another exceeded 30 99/1. Results have ranged from <5 vg/l to PRIVACY INFORMATION ( FOR INTERNAL USE ONLY I

.a ~. f -Memorandum to File. J '.,( ';~ j i/- -282 99 1. Of all sample'results reported, 58 percent (14/24) have. / 4 exceeded the 15 99/1 action level; and 50 percent (12/24).have exceeded- -the 30 99/1 level. Cri !.".:!! Doned By: t . M ayr.7 e y 'D. Blair Spitzberg Senior Radiation Specialist l bec: R.'L. Bangart-W. L. Fisher D. A. Powers D..D. Driskill ^ PRIVACY INFORMATION FOR INTERNAL USE ONLY

/ P.O. box 7475 PROVO UTAM 64602 cxfox CHEMICAL COMPAQY AREA CODE (801)37F9033 omon==owetact.c o. .e ,, m.27,, 7aNE REAGENT CMEMICALS N g3 ggg INVOICE: -47? (%~ ~ ( DATE: -i-<-- 501.,.0: SHIP TO: .. w ...... s ....,.,,...y a ..,....x... u.....,...,.w .....v.. m.u.., C::al:,.::.i :.*?.l* 2475C ) f CLEA :, !!:;/ TCR: 14760 f$ peuG DATL ORDER DATE QATE RECEtVED CUSTOMER'S ORDER NUMBER Out of State 1AxAsLE RL5,c {

• ? / O / '7 l

l l l VEa sat,a

a. o. o

.R ~ ' %'* 360 XXX f M&D V8A O v.a.s. O A.e. TE RME: O C.O.D. ( onion raucK r.o. a. avNviNGroN sEAcw Nrr C 30 Dav5 ' {0roerso Oiv.Shippeo seek Orcerec CATALOG NO. DESCRIPTION OF MATERtAL UNIT PRICE TOTAL r 7.462 l U.d.a. CaTALY:T, ?:C.Y' ,14I::D 335llb

,935.;c

-t.,c 0 z.,., .-C..Dr.s, 2%-..,.,.. C.a,, c.,=, s a.e. a r t ;,,s s. 7.5C4 : (46. 5% r.n. i;, :c : #;2:2?7 . s 7.734 # 3D.22:.4 i + 5 g PACKAGING AND SMIPPtNG CMAaGES A4, s osuus Acetone, Commercially Pure. L d ? 4-88 -002 Drums returned I TAX

torgi,

' '2 " M 2 7 xen.c. = M b a y,:. p j '0 s y Q g '2- - a, N % c_ a, jf;@T,i.id_ 7"2i W - M ='Jpjif;;f.jiF -en.: es,i a s .r ws J,m . + p,.c s,w; f/ f #c4;Fn,,,6., #os., W: s i.m.==d er As==== **.=6.r m.tr 6 ~ tagens.d.N'./ES$ f g [ (De869* 1D $,CllM,.. , h@3lN $]dl'$ ? 1999@ pggi;gM EiTSi;,ffei f & ': '- ?> ?.f.~ - M-W ;g ;;g;g35.s;.4:. -.c~. mawawy y ~e ggmogg gip s s mvun-i

w. m

.hfg M; giggr;W sn#; e 3. - 'y ~ ,.C.,. _f. - gjj.b6. -1 lb N e w 6mp. . %.m -za m w--- awmiese M

.b 3 'i P.O. BOX 7475 .,.a PROVO LTTAM 84602 . oeca=,e AREA OODE(80113759033 omaa= owes awe oxiot(. CHEMICAL COMPAQY ,,n a.sys, I FsNE REACENT CMEMICAL.s (, 386 3 NNwo of INVOICE: 6397667 DATE: , /~ ie ,ot.D TO: SHIP TO: EY3 L C:1:?A::7 BYSCL CCMPACY 2:: TRL"iL::: STMET 211 TRA"KLZll STMET p & CL:All ll:V YCM 14760 CLEA!!, :::*/ TCM

47EC p

s TiPP:NG DALE. ORDE St DATE DATE RECEIVED CUSTOMER % ORDER tvuMBER Out of State 1 Ax ABLE RESAL VE R SAL.: / / / / / / .. e.,

• ? r?

rry hPF ED vl A* TERuss O c.o.o. O u.P.s. C,..>.P. O orion vRue* P.o... wuNriNGroN SEAcw m a, _, iv oroer a civ.smop o seen omr.o cATAtos No. DESCRIPTION OF MATE RI AL UN ICE TOTAL / 6.314 # U.i. A. CAT.iLYST, M:3Y3 AL:::D >305/lb. 5::,319,91 0 8.OS8 # FC:/ DER, E75CL :::C #3215, 99fo 5.36: # ?UR:TY (47.Q*i w.et::l), Lot #020287 7.8&G J 28.658 G ,p AS4 PACxAGING AND SHIPPfMG CHARGES oRuws oRuws I Acetone, Commercially Pure Drums :eturned TOTAL.

l ' W P.O. box 7d75 7.".'.='o%,.we PROVO UTAM 646C2 ORIOR CHEMICAL COMPA(Y AREA cOOE <sciaars-ocas _ f.*

• orzu.srst F8NE REAaENT CMtu CALs N(

3S53 MW INVOICE: 27??7?7 DATE: -i.-ee-SOLD TO: SHIP TO: 1 SY3 L CCRFil!T frf5CL COMPA?.7 221 FRal:ELI:! STME: D:XTER CCFJ'. CL:Al!, i:EW TCFZ 2??CC 212 TL::ELIll 57.REET Cl2Ai, !!!Y Y:FZ 14760 \\ cuPPsNG DATE. ORDER DATE QATE RECElVED CUSTOMER % ORDER NUMBER Opl ot State 1 Ax AtsLE RL5 alt , l,n l nv I I I I VCREAL: _,w, p ,,,eeeD viA o e, a xxx O u.e.s. OA. O o=>o~ raven

TEaus, a c.o.a.

r.o... v~ri~aro~.cAc~ g,, Oraerea Oty Shepped Back Oroered CATALOG NO. L L DESCRIPTION OF MATERIAL UNIT PR3CE TOTAL l l E.25C U. A.x. Car.iLYST, FZCMSTALI::D .::c5f th. sp, SEo.:C E :7:# /CDE.T, ETSC: CCDE ll:15,.=URIT: T.Ezes c?% (47.0,%, LOT J21787 3 94Cd 25 Z4CN l eAcer.Aoino Axo swi>>ma cwAmors e onuus cavus tu 5 Acetone, Commercially Pure .r i e g Drums returned gg TOTAL mo *- )

k s [ P.O. Box 7473 1 1 PROVO uTAN 84602 f'o'a#i.e OR.tox CHEMICAL COMPAQY AREAcOonnons as om aa~ounaan o e raNE REAGENT CHEMICALS (N ygi - ' tQ h eL INVOICE: r> n en 2 -> 3 SOLD TO: DATE: 3/3/67 SHIP TO: .773 L c:::?a."? 2:: FA :*::LI;: :T.9E : yy3: cany,,yy

yz;;;;z;;; $7gg7 CLE.s::, Z:::/ Y ?J: :4760 cleat:, :::7 YDM 1476c

. NIPPING DATE. ' ORDER DATE DATE RECE4vED CUSTOME R'S ORDE R w --' - a' S ete TAXABLE RE5At 3/3 C7 / / / / ^- i VERSAL: entPFLD V6A

e. o.,

/ cint y py793XXX O u.a.s. O A... O oRio~ tRvCK r.o... ~vN ')--~(19,4 2$ @ y D c.0,g. Orc: red Det Shoped Back Orcered CATALOG NO. evy T D 30 pays DESCRIPTION OF MATE RI AL UN!T PRICE - TOTAL f 7.622# , 8. :E2s U.a.a. CAT,.Liz, ?.tc.tr37;L:ztp, Nif.{c 35925.cc E.6CC# HY3cL ccDE #:2:5, 39% pun :7 E, qjZ;; .." " M# 9,34 g (46.5% met:l), Lot #1:3c7 A*(~779f) ' '~,5'$ ",,, a-73.-- y,4;.5g 313 306 3C PACKAGING AND sMIPPING CHARGES ..es _,omuus Acetone, Commercially Pure Drums returned N .~ ; TOTAL M*b gp w 1 w 5 NY f- ~ - ,), / (t v J 6 g %,, ~

'2 f ' e P.O. D.OK 7475 ,,,a..e \\ PROVO UTAM S4002 e=ono ) l ORIOQ CHEMICAL COMPAQY = nu.z7s4 ?,

• mc acAcew escuicAus (NVOICE:

m>- DATE: f N ' 7 SHIP TO: )LD TO: 11Y3GL C'U.:..::Y 211 F.i.aiC1;l 37%EE C:.:..ll,.':: ' Y *.?K ' :47SC 6PPtNG DATE. ORDER DATE DATE RECElvED CUSTOMERT, ORDER NuuSER Out of State iAxABLE RL5An vensAL. a<<o xxx 31.~.i :: 1 i l l .o., Tcmus. O c.c..o. O u .s. "' A.r. O onio~ vauca

r. o... avNvi~avo~.cAca a,, _ -

.ipeEo viA m civ shoo.a seet oro rea cATALoc NO. DESCRIPTION OF MATERIAL UNIT PRICE YOTAL gc - w U. A. A. li RY:~aLL ::,CD ?:,..: A, 99;s 3.~d' Ib i PU?.!?Y (t.8 5% met.~.1),.4Y3CL CCX . ?:: i.: J3215, LOT CO32.57 jg.7pf /AcnAsins Ano swine:No cwa =ces ...f Ag%.; i/ b, _ omuus -pauws 9 ...s

4. w-

,' f.- N ' Acetone, Commercially Pure \\, p,' 'g%' yg Drums returned M 0 l - - #~~ .v ~i[ my 7, w....-- -... q. t g3..,

1....,.:.m u.a..-

CEPTAEfRlR PASSENGER AIRCRAFT. THtS SHIPnENT CONTANS RADeOACTMi MATERIA'. MTENDED FOR US

• ESEARCH. MEDICAL DW4NOSIS OR TREATnENT.

i 4E3' **JmFY TMAT THE COpfTDfTS OF TMS OO800KWtdENT ARE PULLY AMD ACCURATELY nsemearn ABM BY P9IOPER RE AND ARE CLASSIFIED. PACKED. 06ARKED, AND LASELED, AND M PftOPER CONDITION POR CAP.RLAGE BY AIR PM 1. .O APPUCABLE NAT)DetAL 00VERettE5tTAL REGULATIONS. . r m... o. <:,. 'A u... a.... :..... e. (a. . 9.e ....,e...... m.e ae o . r..;. w .... c. immmmummmuumsm i -W

- - -*-. -., c-m .,P* P O. BOX 7475 3( PROVO UTAH &aec2 E.'d.,, ORIOQ CHEMICAL COMPARY AREA cOct ms7nosa emu ~o.e nsan orzo w s. FsNE mEACENT CHEMtCALS INVOICE: i - --- DATE: s ' 1 'r XD TO-SHIP TO:

!Y3;

. C.:MP.U:7 211 r=:::5.;! 37.71::?

C:.EA.', JiJ ! CAT 147 % iPP NG DAIE. ORDER DATE DATE RECEIVED CUSTOMER $ ORDE R NWSER Qut of State TAKA6LE RE53 vtR.A4.i / / / / / / .. o., (PPED vtA TE mus, O C.o.o. Ou. OA. Ooaio~vavC=

r. o... ~vNvi~cto TAC-g,_

sv. Oroerea Oty.Sheoso Back Oroered CATALC.G NO. DESCRIPTION OF MATERI AL UNIT PRICE TOTAL 7.914 Lb: U. A. A. ?! CRY 3TALZ2ED CATALY3T, I 9% PURITY (47.$%.etal), HT3CL,

• .9'S Lc3 z 659 CCDC 3215, LOT #32387 l

• ACMAGING AND SMt PtNG CHAmOEs DRUMS DAUM5 Acetone, Commercially Pure N

Drums returned TOTAL 9 vMh pog 19 m 6 W $ g eae6@MhM-O e anusa es. w m = e').i et 6 e j c,,.,, .= (rusimi 3 '"C ' 1 i l l '*'i '- """ 'L"Tl @ n - C E n % 'a

l i-( .? P.O. BOX 7475 ,,,,,a PROVO UT AH M inomaanic cao*=omas awe j AREA CODE (401137H033 eamu ORIOR CNEMICAL COMPA(Y I PsNE REAGENT CMEMICAL3 i INVOICE: 7?6N57 ^! w

• / // #/

DATE: SHIP TO: l 3: 3 RYXL C':o??A:1Y .l 211 ?l:'.:.'KL!H 2?'l5:7 CLEA:1s l1:J YCRK 14760 DAT E,. ORDEA DATE DATE AECEIVED CUSTOMEH10RDER NuwsER Out ot state TAXA 8bE AL5 ALE vtasAs,.i am xxx i 4 /n / / / / .. o., TERMS: O C.O.D. , onio~ Tauca

r. o... wu~ri~ato~.cAe-m,,

eiA O u.a.s. A.a.r. UNIT PA8CE TOTAL DESCRIPTION OF edATERIAL ved Qty.Sheped Sect Oroered CATALOG NO. U. A. A. CATALYST, R:CRYJTALIZED PCVCER, HYs0L CC05 #3215, 9% .280 12 s j PURITY (L6.6% r.etcL), Lot i40657 36 7 6 L: s 14.05s / i J l

• Acnacino Ano swie iua emances i

euws _ oauMs l Acetone, Commercially Pure N Drums returned

TOTAL, 1

h su ) ' / 7' l i b, _M I a

II 10 .s ~ 1 1 f \\ s ( ~~~ \\ -r P.O. BOX 7475 wuu c k PROVO UTAH S4802 monoaa CHEMICAL CoMPAA(.Y er2H 3754 ~ rtNE CEAGENT CHEMICALS INVOICE: 4603987 DATE: 4/:S/87 SHIP TO: HY3CL CUIPANY 211 TMNKLIN STilECT 1 CLEAN, NEW YOM 14760 ni 6.. ( RDER DATE DATE RECElvED CUSTOMER'S ORDER NUMBER Oui et State TAAASLE RELALE yyy vEanAc _s779a. .,j / / / / .. e., tu mus. O c.o.o. -i )' I A s. O ca.oM vavCn r.o... wuuri=Gro.EACw gg _, meet Ome sci CATALOG NO. DESCRIPTION OF MATERIAL UNIT PRICE TOTAL r Q .U.A.Ae CATALY3T, REC.TY2TALIZ:D ts s' Q PCVDER, NY3CL CCDZ #32:5, 9% PURITY, (46,1% metcL), Lat $4178 \\;>e, ~ N ~ i PAcnAalNG AND SwlMNG CHAaGES 5 Acetone, Commercially Pure Drums returned TOTAL m.

= d n'U"Jlllg g 7 **E 7.,-.

ne e. s none uAANOME '/4 fit 56 m arrsursaas eamammer ~~--- --~~~ t [ ~~

I 'I ,q 9 e P.O. Box 7475 a PRovo UTAH 64402 on,aam.c

• • E' ** ** ** " 3^* 3
• * * ' " * ~ " ' " '
• ox10x CHEMICAL C0MPAKY w us.srsa eine atAscNT carwicAts INVOICE:

" im DATE: <e~.-- SHIP TO: 3LD TO: 5YJCL CC/*?,437 211 IRA.KLIN STRCET ,}. CL:AN, N::s' TC.1K 14760 e fi (sPP NG DATE. ORDER DATE DATE RECElvED CUSTOMERS ORDER NUMBER Out os Stew TAxASLE RL5A VEa tAL: 4 / tn / 47 / '/ / / ..o.,

• - em try Trausi O c.o.o.

D u.a.s. D Arr. Ooaoavavex r.o... avarNovo.cAc-g_, -SAPPED vLA a q g sh oose seem oscas CATALOG NO. DESCRIPTION OF MATERIAL UNIT PRICE TOTAL y M U. A. A. RECRY37.tLIT,CD PCWD R, 995 8.524 lb PUR:TY (45 74 metaU, HYSOL CODE cc.660 lb

1. 3225, Lots 1041767, 043c87

9 2a4 PACKASING AND SM6pPtNG CMAaOES

+ -DauMS Dauws Acetone, Commercially Pure Drums returned TOTAL

• 4

• o" **" _

==*.*Jr,=s. a. :.="' :""*

7. a.;,

m. p.=, -_ T L -

==

=

-l t. l L _' _ _ _ -. _ ._______________________1_____ ..i

1 l i 17 i i l- ~w. n., m,,y. 3....,,,. _.,.,,, \\ P.O. 80X 7475 7,.. OR10x CHEMICAL COMPAxY PROVO UTAH S4002 ,,,,,a ""**E**** i=onoam e = 2r w s4 i PsNE atAGENT CHEMICALS 1 N INVOICE: _57;J6e7

TO:

DATE: _ (/ t /.o s SHIP TO: 37:t:L.'.. :1..*:? 212 ?.L..'::LI JTREET HYSCL C.RMP.:::Y l. CL:<;3,.CV /CRK 14760 21: FRA!:ELIN STRECT OL:AN, N?V YORK 14750 t DA TE. ORDER DATE DATE RECEIVED CUSTOMER S ORDER NUM3ER ' ! / 87 / / / / Ovio Esate TAXA 8LE AL5 ALE VE asAs.: VIA e o. o _eece O v.a.s. xxx A.a.a. oaio~ vaucx r.o.a. var ~aro~seAcw rEaus O C.O.D. w Oty.Shepee Sect Oroered CATALOG NO. 8stT O 30 OAv5 DESCRIPTION OF MATERIAL i UNIT PR8CE TOTAL '{ ^ G4 Us A. A. C. TALY:sT, R~CnTETALZZED .. l ::t 9eC24d PCWDER, ilT3CI. CCDC #3215, 99% 'o y 4 ~

3. %.~,2 PURITY (46 5% natal), Lot 60637 je JCW

• Acwao#wo Amo swea* No cxAncEs es onuws

) Acetone, Commercially Pure Drums returned ~ TOTAL ..N.c- -... m Rble[2 skeA = gg ~ ~ ~1 .4 g g g * * " - y h[6+

v..,

t O s=. y= s w.., , Y.a r s== ="== > u - a .a t .M= W 8O n .mmmmm. s. s. is a. . w F".!... _'..* O E"~"" " " 1 = l ....n-=

• is

1. C a.m. m.um..m.a.m.a.s.

[ Em*a."ne aW'.s.m s*mIe a s h79L. . lll,"'.'.".""llll. M.llr ll".". t: W **M -- -~ e. ( -= s:. n - r rr ,,,,..a,, 1

I4 courAnree.*te <%s.~mku,s.e=.-m-~..n t .-.e --M oc.,cueu_i s mv. n a '. w a e-w.- m w >.. :~ - -.p 1 A Yi h Y k"4R**2 hYssY[~b - lk." gp 3* 2*% i r.TKM 8' ~-"'"T *I I" YNJ "'

• "-i'*

O wgip3Egyamqup'"eM4KEi?*mohes smmacr*M'M i ~"*Syg$$&@bti,ii.jdl9jjy?;6}}ig My. jj f ) y .?d4%iuY @%Q 23 s b,q& h e e \\ .pagw 2_mm .n. ._x a - - .* a"Zw -t, "(up j, A: ~. ~h,., ymniggyea-;:paffman M 1 1 K. 6 p _ _ _. _ aWcon o _ ' **.. =. m .vw s_ E~ i z '17e %. ig MV. FAMS Druffts fttMM"'*! I.- ' A a. e-mes= age w.2,.. 5-yp0g..:m, k ..fe< O ..M. ;e.g..--yx.,c rz. O,,. ,g w a 8"* assessemat ananas 0.m

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ens..,5} e.

W

'ALU43 0 .Ky3 ~~~ . heca m seus j . (' i N ggmgya_ ,,t W****"aa". ~- .- t s., ...,.m .w-y@ffk"c 7. eve,-meAcootsonsmeas % F.. 'y" (g yfg ..t.f'!.h g ^ -m

• **d

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s,v. m 3 n V P.:iM p '. a- - %g9+$ .a.... gy BMW ursot'; conn.UR.[d.;W:h'"g$g e gf k&q.?**~ I ?qTO fW.?X f 24 = %qS.,rs.wn h an ~ ~ n.tuurassrkE y ' '"' ar t ws ati au v omat ossenyyp tMG... One I , +$ t-a .-.a...-.. D yl'R.'e.Yl O, d ; %. 4 .0 I ~ "'"" ~-' F ;,. y.., a w e '= ' F ..' - a s. - - :~n-4 i = . O,, ..:lr.:l" sensesans ammes

== x.:. Y. g Y._.._.~~: .*a!!!!f. " ". 7, d $~d:[:=.kh,,,3 y **. - _.:_.=.. =:- w-- t a.,.,_,. _ _ m,,,r. = = = * = " "

• sannassamer J[,Ip

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rn 'i 6.5 f. pet - 350 -4SC% m scent __._______..._._.._..._...r---.. (. P.O. BOX 747$ PROVO UTAM 64002 e.o e, .e Q oziox CHEMICAL CoMNQY ARencooc<nns; aa.o.n.a.c ethE DEACENT C EMICALS INVOICE: samas? DATE: g,i ' i: SHIP TO: HTSOL COMPANT ETSOL COMPANY 222 TRANELIN STMET 222 FRANKLIN STREET OLEAN, NEW TORE 24760 OLEAN, NEV TORE 14760 ATF ORDER OATE DATE RECElvED CUSTOMER 10RDER NuwSER Owt ot Stew T Ax ABLE RLGALL v E n sA,.i. PMWt rrr g / m, / / / / ..e., TE=ME O C.C.D. A O u.. ,A O ca.o= vavCx .. o... u r ~.vo~.EAC- %m i as Otv Shoped Seek Oroered CATALOG NO. DESCRIPTION OF MATERI AL UNIT PRICE TOTAL g,320 th yej - -U.A.A. CATALYST, RECRTSTALIZED '44 th POVDER, ETSQL CODE 13225, 9 % M (46.% netal), Lot 90W67 JhlYU *v2

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.ACKAGING AND SMepp4MC CMAmOES us oauuS Acetone. Commercially Pure Drums returned TOTAL N +1it.. 3 N'.T.f*kbh- ..y .r.wcrunsur.ar ;;;l I -l3 D E,, =,-, 4 OI!!!!!.. Ital!!!".M"E "7$7"'*c= ~ ^ ' *8 l L. o. i e --re "'- -""'t"~=-

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.,22 w s4 FINE REAGENT CHEMtCALS DATE: , r., f.., CLD TO: SHIP TO: RTSOL COMPANT RTSOL COMPANT 211 FRAMELIN STREET 211 TRANKLIN STREET CLEAN, NEV TORE 14760 OLEAN, NEW TOM 14760 M6PPtNG DATE. ORDER DATE DATE RECEIVED CUSTOMER *S ORDER NUMBER Owi ct State T Ax A8LE RE5e vtasAL: EEE 637790 9 i sp / gy / / / /

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1. ACKAGING AND SMtpPING CHARGES Dmuw$

Dauws Acetone, Commercially Pure E Drums returned TO1 i l l

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~ 17't, AREA CODE 801)37.ks033 ,, w.3ru I ORIOR CHEMICAL COMPAKY 5625187 2.'. c.NE REAGENT CHEMICAL.1 INVOICE: - e/6/67 DATE: SHIP TO: LD TO: HY30L CC"?A'iY 211 MLuKLIN STalET OLIAN, 3ra ETUC 14760 TAxAsn.E RESAL Out of State CU$TOMERS ORDER NUMSER DAT E RECElvED vEmsA1. ' ORDER DATE E O c.o.o. JPPING DATE / / . e., Ttaus 8 '/ 6 / 87 / / O se cavs r.o... MvhviNGroN.cAeN TOTAL _ Nev itPP m vsA O ur. D Arr. OoaioNrauca UNIT PRICE DESCRIPTION OF MATERI AL Sect Oroersa CATALOG NO. .f U. A.A. CATALYST, FIc!U** RIE,EYSOL CC th.$..rets Ory Sheped .gos g*h62 (metallic),Lotr80667 3* /* G 1 PACKAGING AND SNtPPtNG f; MARGES pauws omuus Acetone, Commercially Pure TAX __ Drums r sturned , TOTAL, _ ..~ 'I 'C"#7

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• e INVOICE:

N DATE: e/7/87 SHIP TO: TO: EY3CL CC..?:,,?T 211 F".XG113 STP5:T CLEC1, El YCRI 14760 Out of 5:sse I AxASLE RE5 ALE 4 DAT E. ORDER DATE DATE RECEsVf D CU$TOMERTs ORDER NUWSE A

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9, l l l UNITED STATES OF AMERICA l NUCLEAR REGULATORY COMMISSION l BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of ) Docket No. 9999004 ') (General License Authority WRANGLER LABORATORIES, LARSEN ) of 10 C.F.R. 40.22) LABORATORIES, ORION CHEMICAL COMPANY ) AND JOHN P. LARSEN E.A. 87-223 ASLBP No. 89-582-01-SC NOTICE OF APPEARANCE Notice is hereby given that the undersigned attorney enters an appearance in the above-captioned matter. In accordance with 9 2.713(b), 10 C.F.R., Part 2, the' following information is provided: Name: Ann P. Hodgdon Address: U.S. Nuclear Regulatory Commission Office of the General Counsel Washington, D.C. 20555 Telephone Number: (301)492-1587 Admissions: D.C. Court of Appeals Name of Party NRC Staff Respectfully submitted, I DO CCL &(fy\\,, 6. Ann PJ Hodgdon Counsel for NRC Staff Dat?d at Rockville, Maryland this st day of February,1989

v l UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION l 'BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of ) Docket No. 9999004 l (General License Authority WRANGLER LABORATORIES, LARSEN of 10 C.F.R. 40.22) l LABORATORIES, ORION CHEMICAL COMPANY ) AND JOHN P. LARSEN ) E.A. 87-223 ) ASLBP No. 89-582-01-SC ) CERTIFICATE OF SERVICE-I hereby certify that copies of "NRC STAFF REPLY TO JOHN P. LARSEN RESPONSE OF DECEMBER 26, 1988" in the above-captioned proceeding have been served on the following by deposit in the United States mail, first class, or as indicated by an asterisk through deposit in the Nuclear Regulatory Commission's internal mail system, this 1st day of February, 1989: Charles Bechhoefer, Chairman

• Dr. Jerry R. Kline*

Administrative Judge Atomic Safety and Licensing . Atomic Safety and Licensing Board Board U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Washington, D.C. 20555 John P. Larsen Mr. Frederick J. Shon* Orion Chemical Company Administrative Judge 3853 North Sherwood Road Atomic Safety and Licensing Provo, UT 84604 Board U.S. Nuclear Regulatory Commission Atomic Safety and Licensing Washington, D.C. 20555 Appeal Panel (5)* U.S. Nuclear Regulatory Commission AtomicSafety(andLicensing Washington, D.C. 20555 Board Panel 1)* U.S. Nuclear Regulatory Commission Adjudicatory File

• Washington, D.C.

20555 Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Docketing and Service Section* Washington, D.C. 20555 Office of the Secretary U.S. Nuclear Regulatory Commission D. Blair Spitzberg Washington, D.C. 20555 U. S. Nuclear Regulatory Commission 611 Ryan Plaza Drive Arlington, TX 76011

1 l ! William L Brown, Esq.* U.S. Nuclear Regulatory Commission 611 Ryan Plaza Drive,-Suite 1000 Arlington, Texas 76011 l i Q 1\\a >% c c nn Ann P. Hodgdon Counsel for NRC Staff j l l l b. l - _ _ - _ _ _ - _. _ _ _ - - - _ _ _ _ _ - - - _ _ __ __ ____}}