ML22040A362

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NRC Inspection Report 150-00035/2020-002 and Investigation Report 4-2021-005
ML22040A362
Person / Time
Site: 15000035
Issue date: 02/15/2022
From: Mary Muessle
Division of Nuclear Materials Safety IV
To: Busby S
Advanced Inspection Technologies
Kramer J
References
4-2021-005, EA-21-129 IR 2020002
Download: ML22040A362 (8)


See also: IR 015000035/2020002

Text

February 15, 2022

EA-21-129

Ms. Sharon Busby

President

Advanced Inspection Technologies, Inc.

3820 Charles Page Blvd.

Tulsa, OK 74127

SUBJECT: NRC INSPECTION REPORT 150-00035/2020-002 AND INVESTIGATION

REPORT 4-2021-005

Dear Ms. Busby:

This letter refers to the investigation completed on August 30, 2021, by the U.S. Nuclear

Regulatory Commission (NRC) Office of Investigations at Advanced Inspection Technologies,

Inc., (AIT or licensee) in Tulsa, Oklahoma. The investigation was conducted to determine

whether licensee employees willfully conducted licensed activities in NRC jurisdiction without

filing for reciprocity. The NRCs investigation results were discussed with you during a

telephone conversation on February 2, 2022. A factual summary of the investigation is provided

as Enclosure 1.

Based on the information acquired during the investigation and in-office review by the

inspection staff, two apparent violations were identified and are being considered for

escalated enforcement action in accordance with the NRC Enforcement Policy. The

current Enforcement Policy is included on the NRCs website at http://www.nrc.gov/about-

nrc/regulatory/enforcement/enforce-pol.html. The apparent violations involve the failure to:

(A) file a submittal containing an NRC Form 241, a copy of its Agreement State specific license,

and the appropriate fee with the Regional Administrator of the appropriate NRC regional office

at least 3 days before engaging in each activity in a Non-Agreement State; and (B) ensure that

information provided to the Commission by a licensee is complete and accurate in all material

respects. The apparent violations are documented in Enclosure 2.

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

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

date of this letter, (2) request a predecisional enforcement conference (PEC), or (3) request

alternative dispute resolution (ADR) mediation. If a PEC is held, the PEC will be closed to

public observation since information related to an Office of Investigations report will be

discussed and the report has not been made public. If you decide to participate in a PEC or

pursue ADR, please contact Mr. Roberto Torres at 817-200-1189 or via email at

RobertoJ.Torres@nrc.gov within 10 days of the date of this letter. A PEC should be held within

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

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

Apparent Violations, NRC Inspection Report 150-00035/2020-002; EA-21-129 and should

S. Busby

2

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

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

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

compliance will be achieved. Your response may reference or include previously docketed

correspondence, if the correspondence adequately addresses the required response. Your

response should be sent to the Director, Division of Nuclear Materials Safety, NRC Region IV,

1600 E. Lamar Blvd. Arlington, Texas, 76011-4511 and emailed to R4Enforcement@nrc.gov. If

an adequate response is not received within 30 days of the date of this letter or an extension of

time has not been granted by the NRC, the NRC will proceed with its enforcement decision or

schedule a PEC.

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

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

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

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

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

making an enforcement decision.

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

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

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

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

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

apparent violations. The guidance in NRC Information Notice 96-28, Suggested Guidance

Relating to Development and Implementation of Corrective Action, may be helpful in preparing

your response. You can find the Information Notice using Agencywide Documents Access and

Management System (ADAMS) Accession No. ML061240509.

In lieu of a PEC or written response, you may request ADR with the NRC in an attempt to

resolve this issue. Alternative dispute resolution is a general term encompassing various

techniques for resolving conflicts using a neutral third party. The technique that the NRC has

decided to employ is mediation. Mediation is a voluntary, informal process in which a trained

neutral mediator works with parties to help them reach resolution. If the parties agree to use

ADR, they select a mutually agreeable neutral mediator who has no stake in the outcome and

no power to make decisions. Mediation gives parties an opportunity to discuss issues, clear up

misunderstandings, be creative, find areas of agreement, and reach a final resolution of the

issues.

Additional information concerning the NRCs ADR program can be obtained at

http://www.nrc.gov/about-nrc/regulatory/enforcement/adr.html as well as NRC brochure

NUREG/BR-0317, Enforcement Alternative Dispute Resolution Program Revision 2, ADAMS

Accession No. ML18122A101. The Institute on Conflict Resolution at Cornell University has

agreed to facilitate the NRCs program as a neutral third party. Please contact the Institute on

Conflict Resolution at 877-733-9415 within 10 days of the date of this letter if you are interested

in pursuing resolution of this issue through ADR.

In addition, please be advised that the number and characterization of apparent violations

described in Enclosure 2 may change as a result of further NRC review. You will be advised by

separate correspondence of the results of our deliberations on this matter.

S. Busby

3

In accordance with 10 CFR 2.390 of the NRCs Agency Rules of Practice and Procedure, a

copy of this letter and its enclosures will be made available electronically for public inspection in

the NRC Public Document Room and from the NRCs Agencywide Documents Access and

Management System (ADAMS), accessible from the NRCs website at

http://www.nrc.gov/reading-rm/adams.html. However, you should be aware that all final NRC

documents, including the final Office of Investigations report, are official agency records and

may be made available to the public under the Freedom of Information Act and subject to

redaction of certain information in accordance with the Freedom of Information Act. To the

extent possible, your response should not include any personal privacy or proprietary

information so that it can be made available to the public without redaction.

If you have any questions concerning this matter, please contact Mr. Roberto Torres of my staff

at 817-200-1189.

Sincerely,

Mary C. Muessle, Director

Division of Nuclear Materials Safety

Docket: 150-00035

License: Oklahoma OK-27588-02

Enclosures:

1.

Factual Summary

2.

Supplemental Information

w/attachment

cc w/Enclosures:

Michael Broderick

Environmental Program Manager II

Radiation Management Section

Oklahoma Environmental Agency

Signed by Muessle, Mary

on 02/15/22

ML22040A362

SUNSI Review:

ADAMS:

Non-Publicly Available

Non-Sensitive

Keyword:

By: JEV

Yes No

Publicly Available

Sensitive

EA-21-027

OFFICE

DNMS:C:MIB

RIV:ACES

RC

OE

NMSS

NAME

RTorres

JGroom

DCylkowski

SWoods

MBurgess

SIGNATURE

/RA/ E

/RA/ E

/RA/ E

/RA/ E

/RA/ E

DATE

12/14/2021

12/21/2021

12/21/2021

01/19/22

01/19/22

OFFICE

OGC

D:DNMS

NAME

RAugustus

MCMuessle

SIGNATURE

/NLO/ E

MCM

DATE

02/08/22

02/15/22

Enclosure 1

FACTUAL SUMMARY

NRC INVESTIGATION REPORT 4-2021-005

On November 20, 2020, the U.S. Nuclear Regulatory Commission (NRC), Office of

Investigations (OI), Region IV, initiated an investigation to determine if an official at Advanced

Inspection Technologies, Inc. (AIT or licensee) in Tulsa, Oklahoma willfully conducted licensed

activities in NRC jurisdiction without filing for reciprocity. The investigation was completed on

August 30, 2021.

The official indicated that they knew it was wrong for AIT to work in Missouri without filing for

reciprocity and decided to proceed because AIT was desperate for the income. Specifically, the

official indicated that they knew it was wrong when they made the decision and that proceeding

to work in Missouri without first completing the appropriate filing was contrary to the NRC

reciprocity requirement. The official also identified that AIT did not have a lot of work in Tulsa,

and they were trying to keep the company going. Further, the official stated that they were going

to accept that they were wrong to go ahead and work in Missouri at the time.

Based on the evidence developed during the investigation, it appears that the official

deliberately conducted licensed activities in NRC jurisdiction without filing for reciprocity. This

appears to have caused the licensee to be in violation of 10 CFR 150.20(b)(1).

Additionally, the investigative record included evidence that the official (licensee) submitted

information to the Commission that was not complete and accurate in all material respects.

Specifically, on October 14, 2020, the official signed and filed an NRC Form 241 which stated

that AIT conducted licensed activities in NRC jurisdiction (Missouri) on September 14, 16, 23,

and October 1, 10, 12, 2020. On February 12, 2021, the official sent an email to NRC staff

stating that additional dates were identified on which AIT performed work in Missouri. Further,

the official also confirmed on March 2, 2021, that more dates were identified than they

previously indicated on AITs submitted NRC Form 241. In addition to the dates stated on the

NRC Form 241, AITs utilization log specifies 14 more dates (April 1, June 4, July 12, 14, 17, 23,

29, August 5, 12, 16, 20, 27, and September 2, 9, 2020), that AIT performed radiography work

in Missouri.

Based on the evidence developed during the investigation, it appears that the licensee

submitted an NRC Form 241 to the Commission that was not complete and accurate in all

material respects in violation of 10 CFR 30.9(a).

Enclosure 2

U.S. NUCLEAR REGULATORY COMMISSION

REGION IV

Docket:

150-00035

License:

Oklahoma (Agreement State) OK-27588-02

Report:

150-00035/2020-002

EA No:

EA-21-129

Licensee:

Advanced Inspection Technologies, Inc.

Exit Meeting Date:

February 2, 2022

Regional Contact:

Casey Alldredge, Health Physicist

Materials Licensing & Decommissioning Branch

Division of Nuclear Materials Safety, Region IV

Latischa Hanson, Senior Health Physicist

Materials Licensing & Decommissioning Branch

Division of Nuclear Materials Safety, Region IV

Approved By:

Roberto Torres, Acting Chief

Materials Licensing & Decommissioning Branch

Division of Nuclear Materials Safety, Region IV

Attachment:

Additional Information

2

APPARENT VIOLATIONS

Based on the results of an NRC investigation completed on August 30, 2021, two apparent

violations of NRC requirements were identified. The apparent violations are listed below:

A. 10 CFR 150.20(a)(1) states, in part, that any person who holds a specific license from

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

Non-Agreement States subject to the provisions of 10 CFR 150.20(b).

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

Non-Agreement State shall, at least 3 days before engaging in each activity for the first

time in a calendar year, file a submittal containing an NRC Form 241, Report of

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

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

regional office.

Contrary to the above, between April 1 and October 12, 2020, Advanced Inspection

Technologies, Inc., a licensee of the state of Oklahoma, engaged in licensed activities in

a Non-Agreement State without filing a submittal containing an NRC Form 241, a copy of

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

Administrator of the appropriate NRC regional office at least 3 days before engaging in

each activity. Specifically, Advanced Inspection Technologies Inc., performed

radiography for 20 days (April 1, June 4, July 12, 14, 17, 23, 29, August 5, 12, 16, 20,

27, September 2, 9, 14, 16, 23, and October 1, 10, 12, 2020) in Joplin, Missouri, but did

not request reciprocity until October 14, 2020. Since the work was performed in a

Non-Agreement State beginning on April 1, 2020, Advanced Inspection Technologies,

Inc., was required to provide this information to the NRC by March 29, 2020.

(150-00035/2020-002-01)

B. 10 CFR 30.9(a) requires, in part, that information provided to the Commission by a

licensee shall be complete and accurate in all material respects.

Contrary to the above, on October 14, 2020, Advanced Inspection Technologies, Inc., a

licensee of the state of Oklahoma, provided information to the Commission that was not

complete and accurate in all material respects. Specifically, Advanced Inspection

Technologies, Inc. submitted an NRC Form 241 that failed to include 14 dates (April 1,

June 4, July 12, 14, 17, 23, 29, August 5, 12, 16, 20, 27, and September 2, 9, 2020) on

which the company had already performed radiography in Joplin, Missouri. This

information is material to the NRC because it is used to determine inspections of the

licensees radiography performed in a Non-Agreement State. (150-00035/2020-002-02)

Attachment

Additional Information

PARTIAL LIST OF PERSONS CONTACTED

Sharon Busby, President, Advanced Inspection Technologies, Inc.

INSPECTION PROCEDURES USED

N/A - NRC Investigation Only

ITEMS OPENED, CLOSED, AND DISCUSSED

Opened

150-00035/2020-002-01

AV

Failure to file for reciprocity three days prior to engaging

in activities in federal jurisdiction. (10 CFR 150.20(b)(1))

150-00035/2020-002-02

AV

Failure to provide information that was complete

and accurate in all material respects. (10 CFR 30.9(a))

Closed

None.

Discussed

None.