ML23024A097
| ML23024A097 | |
| Person / Time | |
|---|---|
| Site: | 15000009 |
| Issue date: | 02/16/2023 |
| From: | Blake Welling Decommissioning, ISFSI, and Reactor Health Physics Branch |
| To: | Copeland L Southern Earth Sciences |
| References | |
| EA-22-128 IR 2022003 | |
| Download: ML23024A097 (1) | |
See also: IR 015000009/2022003
Text
UNITED STATES
NUCLEAR REGULATORY COMMISSION
REGION I
475 ALLENDALE ROAD, SUITE 102
KING OF PRUSSIA, PA 19406-1415
February 16, 2023
EA-22- 128
Lewis Copeland, Jr., President
Southern Earth Sciences, Inc.
6352 Piccadilly Square Dr.
Mobile, AL 36609
SUBJECT: SOUTHERN EARTH SCIENCES, INC. - NRC INSPECTION REPORT
150- 00009/2022003
Dear Lewis Copeland, Jr.:
This letter refers to the inspection conducted remotely from October 31, 2022, through
November 28, 2022, with in -office review through January 10, 2023. The inspection consisted of
an examination of activities performed within the jurisdiction of the U.S. Nuclear Regulatory
Commission (NRC), as they related to NRC- licensed byproduct material. Within this area, the
inspection consisted of a selected examination of representative records and interviews with
personnel. The preliminary inspection findings were discussed with you following the conclusion
of the initial technical review on November 28, 2022. A final exit briefing was conducted
telephonically with you and other Southern Earth Science, Inc.s (SES) representatives on
January 20, 2023. The enclosed report presents the results of the inspection.
Based on the results of the inspection, two apparent violations were identified and are being
considered for escalated enforcement action in accordance with the NRC Enforcement Policy,
which can be found at the NRCs website at http://www.nrc.gov/about -
nrc/regulatory/enforcement/enforce-pol.html. The apparent violations, as described in the
enclosed report, involved SESs failure to initially file for reciprocity prior to performing licensed
activities in NRC jurisdiction and numerous subsequent failures to file amended Form 241s or
equivalent prior to performing licensed activities on dates other than those already submitted
and approved by the NRC. Specifically, on January 6, 2022 , SES performed licensed activities
within NRC jurisdiction without having filed an initial application for reciprocity with the NRC for
calendar year 2022 . In addition, fourteen other instances were identified where SES performed
licensed activities on days that were not submitted to or approved by the NRC via an initial or
amended NRC Form 241 or equivalent. Finally, it was identified that the SES office in Louisiana
had likewise performed licensed activities on March 25, 2022, without either (1) filing an initial
application for reciprocity using the license with the State of Louisiana; or (2) filing an amended
Form 241 or equivalent using the already-approved reciprocity license with the NRC through the
State of Florida license.
The circumstances surrounding these apparent violations, the significance of the issues, and
the need for lasting and effective corrective action were discussed with members of your staff
during the initial identification and conclusion of the technical review of the apparent violations
on November 28, 2022. Following initial identification, SES determined that it would pursue
applying for a specific NRC license. SES applied for this license on November 4, 2022, which
was finalized and issued by the NRC on December 22, 2022. As a result, it may not be
L. Copeland, Jr. 2
necessary to conduct a pre- decisional enforcement conference in order to enable the NRC to
make an enforcement decision.
Since the NRC has not made a final determination in this matter, a Notice of Violation is not
being issued for these apparent violations at this time. In addition, please be advised that the
number and characterization of the apparent violation s may change because of further NRC
review.
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, or (2) request a p re-decisional enforcement conference (PEC ). If a PEC is
held, it will be open for public observation and the NRC will issue a press release to announce
the time and date of the conference.
If you decide to participate in a PEC, please contact Christopher Cahill at (610) 337- 5108
or via email at Christopher.Cahill@nrc.gov within 10 days of the date of this letter. A PEC
should be held within 30 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 in NRC Inspection Report (150-00009/2022-003 ); EA-22- 128. Your
response may reference or include previously docketed correspondence if the correspondence
adequately addresses your response. Additionally, your response should be sent to U.S.
Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, DC 20555- 0001,
with a copy mailed to Mr. Blake D. Welling, Director, Division of Radiological Safety & Security,
U.S. Nuclear Regulatory Commission Region I, 475 Allendale Road, Suite 102, King of Prussia,
PA, 19406, and emailed to R1Enforcement@nrc.gov within 30 days of the date of this letter. If
an adequate response is not received within the time specified or an extension of time has not
been granted by the NRC, the NRC will proceed with its enforcement decision.
In lieu of providing this written response, you may choose to provide your perspective on
this matter, including the significance, cause, and corrective actions, as well as any other
information that you believe the NRC should take into consideration by requesting a PEC
to meet with the NRC. 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 accordance with 10 CFR 2.390 of the NRCs Agency Rules of Practice and Procedure, a
copy of this letter, its enclosure, and your response, if you choose to provide one, will be made
available electronically for public inspection in the NRC Public Document Room and from the
NRCs Agencywide Document Access and Management System (ADAMS), accessible from
the NRC website at http://www.nrc.gov/reading- rm/adams.html. 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.
L. Copeland, Jr. 3
If you have any questions concerning this matter, please contact Jason vonEhr of my staff at
(610) 337-5 256.
Sincerely,
Blake D. Welling, Director
Division of Radiological Safety and Security
Docket No. 150-00009
License No. FL-3025-1
Enclosure:
NRC Inspection Report 150 -00009/2022- 003
cc (w/Enclosure):
S. Mitchell, Southern Earth Sciences, Inc.
L. Fowler, Southern Earth Sciences, Inc.
K. Meyn, South Earth Sciences, Inc.
State of Florida
State of Louisiana
L. Copeland, Jr. 4
SUBJECT: SOUTHERN EARTH SCIENCES, INC. - NRC INSPECTION REPORT
150- 00009/2022003 DATED FEBRUARY 16, 2023
Distribution:
SECY RIDSSECYMAILCENTER
OEMAIL
OEWEB
DDorman, EDO RIDSEDOMAILCENTER
CHaney, DEDM
PNoto, OEDO
DPelton, OE RIDSOEMAILCENTER
JPeralta, OE
NHasan, OE
LSreenivas, OE
KWilliams, NMSS RIDSNMSSOD RESOURCE
MBurgess, NMSS
Enforcement Coordinators RII, RIII, RIV
(MKowal; DBetancourt-Roldan; JGroom)
HHarrington, OPA RIDSOPAMAILCENTER
RFeitel, OIG RIDSOIGMAILCENTER
DDAbate, OCFO RIDSOCFOMAILCENTER
BWelling, DRSS, RI R1DRSSMAILRESOURCE
JNick, DRSS, RI
MRalph, RI
CCahill, DRSS, RI
JvonEhr, RI
DScrenci, PAO-RI
NSheehan, PAO-RI
FGaskins, SAO-RI
LHanson, SAO-RI
BKlukan, ORA, RI
RMcKinley, ORA, RI
R1Enforcement.Resource
DGarvin, ORA, RI
US NRC/ Region IV/DRSS
https://usnrc.sharepoint.com/teams/Region-I-DNMS1/Shared Documents/Administrative Items and Reports/Southern
Earth Sciences - Draft Choice Letter 01-23 -2023.docx
ADAMS ACCESSION NUMBER: ML23024A097
SUNSI Review: ADAMS: Non-Publicly Available Non-Sensitive Keyword:
By: JEV Ye Plvlle Ssitiv
OFFICE :DRSS :DRSS :O :DRSS
ME Jvo hill MMcLaughlin BDWli
TE 01/20/2023 01/20/2023 023/ 02/16/2023
OFFICAL RECORD COPY
U.S. NUCLEAR REGULATORY COMMISSION
REGION I
Docket: 150- 00009
License: FL- 3025-1
Report: 2022- 003
Licensee: Southern Earth Sciences, Inc.
Locations Inspected: N/A - Remote Review of Temporary Job Sites in NRC Jurisdiction
Inspection Dates: October 31, 2022, through November 28, 2022 , with in-office
review through January 10, 2023
Inspector: Jason vonEhr, Health Physicist
Commercial, Industrial, R&D and Academic Branch
Division of Radiological Safety and Security
Approved By: Christopher G. Cahill, Chief
Commercial, Industrial, R&D and Academic Branch
Division of Radiological Safety and Security
Attachments: Supplemental Inspection Information
Enclosure
EXECUTIVE SUMMARY
Southern Earth Sciences, Inc.
NRC Inspection Report 150- 00009/2022- 003
Program Overview
Southern Earth Sciences, Inc. (SES) was a geotechnical consulting and materials testing
company headquartered in Mobile, Alabama, with offices in Alabama, Mississippi, Louisiana,
and Florida. The company utilized portable nuclear gauges under Agreement State licenses to
conduct soil density testing. SES possesses radioactive materials licenses with, among other
Agreement States, the State of Florida, and State of Louisiana, which authorizes SES to
possess and use portable nuclear gauges to measure the physical properties of materials.
SES routinely applied for and received approval to perform the same licensed activities within
NRC jurisdiction under the NRCs reciprocity program and the provisions in Title 10 of the Code
of Federal Regulations Part 150.20 Recognition of Agreement State Licenses. (Section 1 of
this report)
Inspection Findings
Two apparent violations were identified through a non- routine and unplanned inspection of the
activities performed by SES and its performance of these activities within NRC jurisdiction. This
review was initiated when SES requested deletion of certain dates from its reciprocity approval
in calendar year 2022. In supporting this request, SES provided documentation which, upon
review by the NRC, identified that SES had performed licensed activities in NRC jurisdiction
on days that had not been requested by SES nor approved by the NRC.
Specifically, on January 6, 2022, SES performed licensed activities within NRC jurisdiction
without having filed an initial application for reciprocity with the NRC for calendar year 2022. In
addition, fourteen other instances were identified where SESs office in Florida had performed
licensed activities on days that were not submitted to the NRC via an initial or amended NRC
Form 241 or equivalent. Finally, it was identified that the SESs office in Louisiana had likewise
performed licensed activities in NRC jurisdiction on March 25, 2022, without either (1) filing an
initial application for reciprocity using the SES radioactive materials license with the State of
Louisiana; or (2) filing an amended Form 241 or equivalent using the already-approved
reciprocity license with the NRC through the State of Florida radioactive materials license.
(Section 2 of this report)
Corrective Actions
During the NRCs expanded review of the extent of the apparent violations, SES determined
that it would need a specific NRC license in order to continue to perform licensed activities
within NRC jurisdiction without interruption, as it had effectively exhausted the 180 days of
reciprocity authorized in a calendar year under 10 CFR 150.20(b)(4). SES applied to the
NRC for this license on November 4, 2022, which was finalized and issued by the NRC on
December 22, 2022, therefore preventing the apparent violations from occurring in the future
so long as SES maintained the NRC license. (Section 3)
2
REPORT DETAILS
1. Program Overview (Inspection Procedure 871 39)
Southern Earth Sciences, Inc. (SES) was a geotechnical consulting and materials testing
company headquartered in Mobile, Alabama, with offices in Alabama, Mississippi,
Louisiana, and Florida. The company utilized portable nuclear gauges under Agreement
State licenses to conduct soil density testing. SES possesses radioactive materials
licenses with, among other Agreement States, the State of Florida, and State of
Louisiana, which authorizes to SES to possess and use portable nuclear gauges to
measure the physical properties of materials. SES routinely applied for and received
approval to perform the same licensed activities within the U.S. Nuclear Regulatory
Commissions (NRCs) jurisdiction under the NRCs reciprocity program and the
provisions in Title 10 of the Code of Federal Regulations (10 CFR) Part 150.20
Recognition of Agreement State Licenses. SES was approved for reciprocity via its
State of Florida license every calendar year from 2016 through 2022. Furthermore, SES
applied separately for reciprocity in calendar year 2022 with the NRC for its operations
in the State of Louisiana using the subject States radioactive materials license.
2. Observations and Findings
2.1. Inspection Scope
The inspection was an examination of activities conducted within the jurisdiction of
the NRC, as they related to NRC-licensed byproduct material. Within this area, the
inspection consisted of a selected examination of representative records and interviews
with personnel.
2.2. Observations and Findings
SES regularly filed amended NRC Form 241s in calendar year 2022 to address its
continuing possession and use of portable nuclear gauges within NRC jurisdiction,
specifically for construction- related activities at Tyndall Air Force Base (TAFB) outside of
Panama City, Florida, an area of exclusive F ederal jurisdiction, and therefore requiring
either a specific NRC license or a general license under reciprocity and the provisions of
Leading up to the end of October 2022, the NRC communicated to SES regarding the
regulation in 10 CFR 150.20(b)(4), which limits reciprocity licensees to 180 days of
licensed activities per calendar year. On October 28, 2022, SES was approved for a
further five days of licensed activities in NRC jurisdiction, which brought the calendar
year cumulative total to 174 days. On October 31, 2022, SES submitted a request for the
deletion of days in which it was authorized for the performance of reciprocity but had not
performed licensed activities and included a gauge users timesheet to demonstrate the
absence of licensed activities on certain days.
During the NRCs initial review of this request, five instances were identified in which the
gauge users timesheet recorded the use of a portable nuclear gauge in the performance
of density testing at TAFB . This was communicated to SES on November 4, 2022, along
with a request for additional information sufficient to expand the NRCs review to include
the entirety of the calendar year, as only partial information was initially submitted.
3
On November 4, 2022, the NRC inspector interviewed the only gauge user who
was purported to have possessed or used a portable nuclear gau ge at TAFB . This
interview confirmed that, to the best of the individuals knowledge, only that individual
had performed any work for SES involving the portable nuclear gauge at TAFB and
confirmed the individuals practices with respect to the preparation and completion of the
timesheets submitted in support of SESs reciprocity deletion request .
SES provided the additional information on November 14, 2022, pursuant to the NRCs
request made on November 4, 2022, allowing a full calendar year review of the activities
performed at TAFB . Included in the above was information concerning the licensed
activities performed out of the SESs Louisiana office at a military facility in Louisiana.
Following the NRCs expanded review, a total of fifteen instances were identified in
which SES performed licensed activities at TAFB without having requested or been
approved by the NRC to perform these activities. One item of note is that the gauge
users timesheet only recorded instances when the individual used the portable nuclear
gauge in the performance of density testing: the individual stated in their interview that
a portable nuclear gauge was likely brought to TAFB in many instances when density
testing was initially requested by the client, but this testing had been delayed or
cancelled. As a result, it is likely that additional instances beyond the fifteen noted above
occurred in which SES: (1) possessed the portable nuclear gauge at TAFB, itself a
licensed activity even in the absence of the use of the device, (2) did not record d ensity
testing on the individuals timesheet, and (3) was not approved by the NRC to possess
and use the portable nuclear gauge at TAFB. However, insufficient documentation
existed or could be readily created after-the-fact to identify when and how many
instances of this nature occurred.
Furthermore, it was identified that SESs first instance of a positively identified
unapproved licensed activity in NRC jurisdiction in calendar year 2022 occurred on
January 6, 2022, prior to SES initially filing for reciprocity for calendar year 2022. SES
filed for reciprocity for calendar year 2022 on January 7, 2022, requesting authorization
for the performance of licensed activities at TAFB on January 11- 14, 2022, with no
mention of the activities that had been performed on January 6, 2022.
Finally, SESs operations out of Louisiana were identified to have performed licensed
activities on March 25, 2022, at Naval Air Station Joint Reserve Base New Orleans, an
area of exclusive F ederal jurisdiction, without NRC approval. SESs responsible office
in Louisiana had requested this authorization on March 16, 2022, under a new and
separate initial reciprocity application 0F1 using the State of Louisiana radioactive materials
license but had made an error in the NRC email address to- be-transmitted to, and as
a result the email failed to reach the NRC and SES failed to notice the email bounce
back. SESs Louisiana office was later approved for reciprocity by the NRCs Region IV
office on April 8, 2022, but this later approval did not include, even after-the-fact,
approval for the activities on March 25, 2022.
1 Note: There was no requirement for SES to file a second and separate reciprocity application with the
NRC to possess and use portable nuclear gauges out of its Louisiana office. SES could have filed an
amended NRC Form 241 with the NRC using the authority and authorizations provided in its State of
Florida radioactive materials license to authorize this activity, so long as the subject licensed activities
were authorized on the State of Florida license.
4
2.3. Apparent Violation
Two apparent violations of NRC requirements were identified. The first apparent
violation involved the failure to file an initial reciprocity application with the NRC prior to
the performance of licensed activities within NRC jurisdiction for the first time in calendar
year 2022, or, alternatively, to possess a specific license with the NRC authorizing the
same activity. The apparent violation (150- 00009/2022- 003 /01) is described below:
10 CFR 30.3 requires, in part, that no person shall manufacture, produce, transfer,
receive, acquire, own, possess, or use byproduct material except as authorized in a
specific license issued in accordance with the regulations in Chapter I.
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) requires, in part, that any person engaging in activities in
Non- Agreement States, 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
U.S. Nuclear Regulatory Commission Regional Office.
Contrary to the above, on January 6, 2022, SES, which was authorized for
possession and use of radioactive material under a specific license issued by the
State of Florida, used a portable nuclear gauging device containing byproduct
material in an area of exclusive Federal jurisdiction without a specific or general
license issued by the NRC and without filing a submittal containing an NRC Form
241, a copy of its Agreement State specific license, and the appropriate fee with the
appropriate U.S. Nuclear Regulatory Commission Regional Office for the Region in
which the Agreement State that issued the license is located. Specifically, SES
possessed and used a portable nuclear gauge at TAFB, a location of exclusive
Federal jurisdiction, on January 6, 2022, prior to submitting a r equest for the
performance of reciprocity with the NRC, or, alternatively, possessing a specific
license with the NRC authorizing the same activity.
The second apparent violation involved the apparent failures to file amended NRC
Form 241s or equivalent with the NRC and be approved for these changes prior to the
performance of licensed activities within NRC jurisdiction that differ from those activities
already submitted and approved under the prior initial calendar year NRC Form 241
or in subsequent amended NRC Form 241s for the same calendar year
(150- 00009/2022- 003- 02).
The second apparent violation is described below:
10 CFR 30.3 requires, in part, that except for persons exempt as provided in this
part and Part 150 of Title 10 Chapter I of the Code of Federal Regulations , no person
shall own, possess, or use byproduct material except as authorized in a specific or
general license issued pursuant to the regulations in Title 10 Chapter I.
5
10 CFR 150.20(a) states, in part, that any person who holds a specific license from
an Agreement State is granted a general NRC license to conduct the same activity in
areas of exclusive Federal jurisdiction within Agreement States, subject to the
provisions of 10 CFR 150.20(b)
10 CFR 150.20(b)(2) requires, in part, that any person engaging in activities in areas
of exclusive Federal jurisdiction within Agreement States, under the general licenses
provided in this section shall file an amended NRC Form 241 or letter with the
Regional Administrator to request approval for changes in work locations, radioactive
material, or work activities different from the information contained on the initial NRC
Form 241.
Contrary to the above, on fifteen occasions from February 8, 2022, through
October 24, 2022, SES, which was authorized for possession and use of radioactive
material under specific licenses issued by the State of Florida and State of Louisiana,
performed specifically licensed activities at TAFB and Naval Air Station Joint
Reserve Base New Orleans, locations of exclusive Federal jurisdiction, without
having filed an amended NRC Form 241 or letter with the Regional Administrator
to request approval for changes in work locations, radioactive material, or work
activities different from the information contained on the initial NRC Form 241 or later
amended and approved NRC Form 241s.
2.4. Conclusions
The NRC inspection identified two apparent violations, both concerning the filing and
request for approval of reciprocity with NRC Form 241s. The first apparent violation
concerned the performance of licensed activities without having filed an initial NRC
Form 241, while the second apparent violation concerned subsequent licensed activities
that had not been described and approved on the initial NRC Form 241 or subsequent
amendments.
3. Corrective Actions
During the NRCs expanded review of the extent of the apparent violations, SES
determined that it would need a specific NRC license in order to continue to perform
licensed activities within NRC jurisdiction without interruption, as it had effectively
exhausted the 180 days of reciprocity authorized in a calendar year under 10 CFR
150.20(b)(4). SES applied to the NRC for this license on November 4, 2022, which was
finalized and issued by the NRC on December 22, 2022. As a result of the issuance of
this specific NRC license, SES, so long as this license was maintained, will perform
licensed activities under the provisions of 10 CFR Part 30, rather than those provided for
in 10 CFR 150.20, thereby eliminating the possibility of re- occurrence of the two
apparent violations described above in Section 2.3.
6
4. Exit Meeting Summary
The NRC inspector presented the preliminary inspection findings with SES management
in the Panama City, Florida office following the conclusion of the initial technical review
on November 28, 2022. Following the NRCs in-office review, which concluded on
January 10, 2023, the NRC conducted a final exit briefing via teleconference on
January 20, 2023, with Lewis Copeland, Jr., SES President, as well as representatives
from the SES offices in Panama City and New Orleans which were involved in the
above- described findings.
7
SUPPLEMENTAL INSPECTION INFORMATION
LIST OF PERSONS CONTACTED
Lewis Copeland, Jr. - President, Southern Earth Sciences, Inc. (SES)
Logan Fowler, P.E. - Branch Manager, SES Panama City, Florida office
Laura Williams - Project Administrator, SES Panama City, Florida office
Scott Mitchell - Construction Department Manager, Radiation Safety Officer,
SES Panama City, Florida office
Ernest Nillen, Jr. - Soils Department Manager, SES New Orleans, Louisiana office
Kenneth Meyn - Branch Manager, SES New Orleans, Louisiana Office
INSPECTION PROCEDURES USED
87139 - Portable Nuclear Gauge Programs
ITEMS OPENED, CLOSED, AND DISCUSSED
Opened
150- 00009/2022- 003- 01 AV Failure to either apply for and receive an NRC specific
license (10 CFR 30.3) or apply for and receive initial
approval for reciprocity (10 CFR 150.20(b))
150- 00009/2022-003- 02 AV Failure to file and receive approval for changes made to
prior-approved reciprocity via an amended NRC Form 241
Closed
None
Discussed
None
LIST OF ACRONYMS
ADAMS Agencywide Documents Access and Management System
AV Apparent Violation
CFR Code of Federal Regulations
NRC Nuclear Regulatory Commission
PEC Pre-decisional Enforcement Conference
R&D Research and Development
SES Southern Earth Sciences, Inc.
TAFB Tyndall Air Force Base
Attachment