ML24102A272
| ML24102A272 | |
| Person / Time | |
|---|---|
| Issue date: | 04/11/2024 |
| From: | Kevin Williams NRC/NMSS/DMSST/MSLB |
| To: | Karchon C Glow Rhino |
| References | |
| EA-23-140, 3-2023-003 | |
| Download: ML24102A272 (1) | |
Text
C. Karchon UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 April 11, 2024 EA-23-140 Glow Rhino, LLC ATTN: Mr. Christopher Karchon, Manager 2011 Bailey Street
Dearborn,
MI 48124
SUBJECT:
GLOW RHINO LLC - U.S. NUCLEAR REGULATORY COMMISSION OFFICE OF INVESTIGATIONS REPORT NO. 3-2023-003
Dear Mr. Karchon:
This letter refers to the investigation initiated by the U.S. Nuclear Regulatory Commissions (NRC)
Office of Investigations (OI), on November 15, 2022. The purpose of the investigation was to determine whether Glow Rhino, LLC (Glow Rhino) was in compliance with NRCs regulatory requirements related to Glow Rhinos possession and distribution of products containing radioactive material.
Based on the results of this investigation, 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 (1) possession of tritium (H-3) without a license to possess nor obtained via proper distribution under an exempt license issued by NRC, and (2) initially transferring, for sale or distribution, products containing tritium (H-3), that were not authorized for distribution on an NRC license at the time of distribution.
Glow Rhinos failure to obtain the required licenses to possess and distribute products containing radioactive materials is significant because it inhibited the NRCs regulatory oversight responsibilities to ensure that the products were safe for distribution to members of the general public. The apparent violations are listed in Enclosure 1.
During an April 11, 2024, telephonic exit meeting conducted with you, as Glow Rhinos manager, NRC staff discussed these apparent violations, their significance, and the need for lasting and effective corrective actions. As discussed, the NRC has not made a final determination regarding the apparent violations, or that enforcement action will be taken against Glow Rhino. Since the NRC has not made a final determination in this matter, a Notice of Violation is not being issued at this time. Before the NRC makes its enforcement decision, we are providing you with an opportunity to: (1) respond in writing to the apparent violations described in the enclosures within thirty (30) calendar days of the date of this letter, (2) request a Pre-decisional Enforcement Conference (PEC), or (3) request Alternative Dispute Resolution (ADR) mediation. If you wish to
C. Karchon 2
choose a PEC or ADR, you must contact Booma Venkataraman of my staff, at (301) 415-6026 or Booma.Venkataraman@nrc.gov, within 10 calendar days of the date of this letter to confirm your request for a PEC or ADR. A PEC should be held within thirty (30) calendar days and an ADR should be held within forty-five (45) calendar 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 Violation - Investigation Report No. 3-2023-003; EA-23-140. The information should include: (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.
In presenting any corrective actions, you should be aware that the promptness and comprehensiveness of the actions will be considered in assessing any civil penalty for the apparent violation. The guidance in NRC Information Notice 96-28, Suggested Guidance Relating to Development and Implementation of Corrective Action, may be useful in preparing your response. You can find the information notice on the NRC website at:
https://www.nrc.gov/reading-rm/doc-collections/gen-comm/info-notices/1996/in96028.html. If an adequate response is not received within the time specified or an extension of time has not been granted, 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. The PEC is being held to obtain information to assist the NRC in making an enforcement decision. This may include information to determine whether a violation occurred and whether willfulness is involved, information to determine the significance of any violation, and information related to any corrective actions taken or planned. For the apparent violations, you should be prepared to address: (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; and (3) the corrective steps that will be taken to avoid further violations. If a PEC is held, it will be open to public observation and the report will be made public. In addition, the NRC typically posts a meeting notice on the NRC public website to announce the time and date of this conference.
In lieu of a PEC, you may request ADR mediation with the NRC in an attempt to resolve this issue.
ADR 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 third party (the 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 in long-term corrective actions to prevent recurrence of violations, find areas of agreement, and reach a final resolution of the issues. Additional information concerning the NRCs ADR program can be obtained in the NRCs website at http://www.nrc.gov/about-nrc/regulatory/enforcement/adr.html.
The Institute on Conflict Resolution (ICR) at Cornell University has agreed to facilitate the NRCs program as a neutral third party. The ICR would provide both parties with a list of three individuals to choose from who would serve as the independent mediator. Please contact ICR 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.
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In addition, please be advised that the number and characterization of the apparent violations described in the enclosure 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.
In accordance with the NRCs Agency Rules of Practice and Procedure in 10 CFR 2.390, a copy of this letter, its enclosure(s), and your response, if you choose to provide one, will be made available electronically for public inspection in the NRC Public Document Room or from the NRCs Agencywide Documents Access and Management System, accessible from the NRCs website at http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response should not include any personal privacy, proprietary, or safeguards information so that it can be made available to the Public without redaction. Any information forwarded to NRC should be clearly labeled on the first page with the case reference number EA-23-140.
Should you have any questions, please contact Booma Venkataraman of my staff at (301) 415-6026 or Booma.Venkataraman@nrc.gov.
Sincerely, Kevin Williams, Director Division of Materials Safety, Security, State, and Tribal Programs Office of Nuclear Material Safety and Safeguards
Enclosures:
- 1. Apparent Violations Being Considered for Escalated Enforcement
- 2. Summary of Concerns - OI Investigation Report No. 3-2023-003 KEVIN WILLIAMS Digitally signed by KEVIN WILLIAMS Date: 2024.04.11 16:38:27 -04'00'
C. Karchon 4
SUBJECT:
GLOW RHINO LLC - U.S. NUCLEAR REGULATORY COMMISSION OFFICE OF INVESTIGATIONS REPORT NO. 3-2023-003, DATED: APRIL 11, 2024 DISTRIBUTION:
D Pelton, OE J Cai, OE J Peralta, OE L Sreenivas, OE R Augustus, OGC M Burgess, NMSS M Hammond, NMSS L Sepulveda, NMSS B Venkataraman, NMSS R Edwards, RIII K Lambert, RIII ML22074A256 OFC MSST/MSLB MSST/MSLB MSST/MSLB RIII/DRSS/MIB NAME MHammond LSepulveda via email BVenkataraman via email REdwards Via email DATE 03/05/2024 03/05/2024 03/05/24 03/11/24 OFC NMSS/MSST NMSS EC OE ES OE NAME KWilliams (prior to OE)
Via email MBurgess LSreenivas Via email JPeralta Via email DATE 03/11/24 03/11/24 04/08/24 04/08/24 OFC OGC (NLO)
NMSS/MSST NAME RAugustus Via email KWilliams (Final sign)
DATE 04/08/24 04/11/24 OFFICIAL RECORD
1 APPARENT VIOLATIONS BEING CONSIDERED FOR ESCALATED ENFORCEMENT Apparent Violation 1:
Title 10 of the Code of Federal Regulations (10 CFR) 30.3(a), "Activities requiring license" states, in part, that no person shall manufacture, produce, transfer, receive, acquire, own, possess, or use byproduct material except as authorized in a specific or general license issued in accordance with the regulations in this chapter.
Contrary to the above, between approximately January 6, 2021, to October 4, 2023, Glow Rhino possessed byproduct material that was not authorized by a specific or general license. Specifically, Glow Rhino, LLC possessed the following products containing tritium that were not authorized by a possession license, and were not exempt from the requirements for a possession license: Tritium Pry Bar, Tritium Glow Fob, Tritium Keybar, Ember Fob, Griffin Pocket Tool, Spyderco Paramilitary 3, G10 Scales, Tritium Benchmade Thumbstud - Glow Rhino, Tritium Benchmade Bugout Axis Lockbar, G10 Tritium Scales for the Benchmade Bugout, Tritium Benchmade, Griptilian Axis Lockbar, and Tritium Mini Benchmade Griptilian Axis Lockbar.
Apparent Violation 2:
10 CFR 30.3(a), "Activities requiring license" states, in part, that no person shall manufacture, produce, transfer, receive, acquire, own, possess, or use byproduct material except as authorized in a specific or general license issued in accordance with the regulations in this chapter.
Contrary to the above, between approximately January 6, 2021, to October 4, 2023, Glow Rhino transferred products containing byproduct material to persons not possessing a license, without authorization by a specific license authorizing distribution to persons not possessing a license. Specifically, Glow Rhino transferred the following products containing tritium without having the products evaluated by the NRC and registered in the Sealed Source and Device Registry (SSDR) or authorized for distribution by a license issued pursuant to 10 CFR 30.3(a): Tritium Pry Bar, Tritium Glow Fob, Tritium Keybar, Ember Fob, Griffin Pocket Tool, and Tritium Benchmade Thumbstud - Glow Rhino.
1
SUMMARY
OF CONCERNS OFFICE OF INVESTIGATIONS REPORT 3-2023-003 On November 15, 2022, the NRC Office of Investigations (OI), Region III field office initiated an investigation to determine whether the manager of Glow Rhino engaged in activities that caused the company to be in violation of NRC regulations pertaining to Glow Rhinos possession and distribution of tritium products. The investigation was completed on November 7, 2023, and documented in OI Report 3-2023-003.
Glow Rhino is located in the State of Michigan, and is co-located with Cammenga and Associates, LLC (Cammenga). Cammenga holds a radioactive materials possession license, exempt distribution license, and three SSDR certificates issued by the NRC. Cammenga is authorized to distribute products containing tritium, such as gun sights, flashlights, firearm safeties, knives, and compasses. The products contain a small vial(s) of tritium, visible on the outside of the product, and intended to allow the user to more easily find the product in low light conditions. Glow Rhino receives products containing tritium from Cammenga and distributes products to individuals that do not have a license to possess radioactive material. In addition, Glow Rhino purchases raw products intended to be marketed and sold as Glow Rhino products (the products at this point do not contain tritium). Glow Rhino then transfers the raw products to Cammenga for tritium installation. Cammenga performs the installation services and ships the finished products to Glow Rhino. Also, Glow Rhino has arrangements with other companies (e.g., Griffin, Prometheus) where Glow Rhino performs that service on their behalf and transfers the finished units to them for sale. The individual at Glow Rhino (the non-licensee) identifies himself as a Manager of Glow Rhino and is responsible for the day-to-day operations of Glow Rhino. This is the same individual that is the point of contact for Cammenga (an NRC licensee).
However, the two companies (Cammenga and Glow Rhino) are two separate legal entities.
10 CFR 30.3(a), "Activities requiring license" states, in part, that no person shall manufacture, produce, transfer, receive, acquire, own, possess, or use byproduct material except as authorized in a specific or general license issued in accordance with the regulations in this chapter.
10 CFR 30.19(a), provides an exemption to the requirement for a license in 10 CFR 30.3(a) for persons who receive, possess, use, transfer, own or acquire tritium, krypton-85, or promethium-147 in self-luminous products manufacture, process, produce, or initially transfer in accordance with a specific license issue pursuant to 10 CFR 32.22, which license authorizes the initial transfer of the product for use under 10 CFR 30.19.
10 CFR 30.19(b) provides, in part, that any person who desires to initially transfer for sale or distribution self-luminous products containing tritium, krypton-85, or promethium-147 for use under 10 CFR 30.19(a) should apply for a specific license pursuant to 10 CFR 32.22 and for a certificate of registration in accordance with 10 CFR 32.210. Under such a license, the licensee may distribute the licensed product to persons exempt from the regulations pursuant to 10 CFR 30.19(a).
10 CFR 32.210 specifies the requirements pertaining to a certificate of registration.
The OI investigation revealed that, between approximately January 6, 2021 to October 4, 2023, Glow Rhino, an unlicensed entity, possessed the following products containing tritium: Tritium Pry Bar, Tritium Glow Fob, Tritium Keybar, Ember Fob, Griffin Pocket Tool, Spyderco Paramilitary 3 G10 Scales, Tritium Benchmade Thumbstud-Glow Rhino, Tritium Benchmade Bugout Axis Lockbar, G10 Tritium Scales for the Benchmade Bugout, Tritium Benchmade,
2 Griptilian Axis Lockbar, and Tritium Mini Benchmade Griptilian Axis Lockbar. Based on the investigation, Glow Rhino did not have a license to possess tritium and these products were not authorized for distribution by an exempt license issued by NRC, nor registered by an SSDR issued by NRC.
The OI investigation also revealed that, between approximately January 6, 2021, and October 4, 2023, Glow Rhino, transferred the following products containing tritium to entities that did not have a license to possess radioactive material: Tritium Pry Bar, Tritium Glow Fob, Tritium Keybar, Ember Fob, Griffin Pocket Tool, and Tritium Benchmade Thumbstud-Glow Rhino.
Based on the investigation, these products containing tritium had not been evaluated by the NRC and registered in the SSDR, nor authorized by a license issued pursuant to 10 CFR 30.3(a) or 30.19.