ML24135A374
| ML24135A374 | |
| Person / Time | |
|---|---|
| Site: | 03028571 |
| Issue date: | 06/06/2024 |
| From: | Jack Giessner Region 3 Administrator |
| To: | Newhof T Prein & Newhof |
| References | |
| EA-23-119, NMED 220442 | |
| Download: ML24135A374 (1) | |
See also: IR 07100202/2030001
Text
NMED No. 220442 (closed)
Thomas Newhof
President
Prein & Newhof
3355 Evergreen Drive NE
Grand Rapids, MI 49525
SUBJECT: NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY -
$9000, NRC ROUTINE INSPECTION REPORT 03028571/2023001(DRSS) - PREIN
& NEWHOF
Dear Thomas Newhof:
This letter refers to the U.S. Nuclear Regulatory Commission (NRC) inspection conducted on
April 13, 2023, and September 18 through 21, 2023, at your facilities in Kalamazoo, Cadillac,
Muskegon and Grand Rapids, Michigan, as well as at temporary job sites in Kalamazoo and
Muskegon with continued in-office review through February 21, 2024. The purpose of the
inspection was to review activities performed under your NRC license to ensure that they were
being performed in accordance with NRC requirements, and to review an incident involving
damage to a device containing licensed material that you reported on October 11, 2022. During
the inspection, two apparent violations of NRC requirements were identified. During a telephone
exit meeting on February 21, 2024, the licensees representative, Brent Van Dyke, Radiation
Safety Officer, was informed of the apparent violations. The circumstances surrounding the
apparent violations, the significance of the issue, and the need for lasting and effective
corrective actions were also discussed at that exit meeting. Inspection Report No.
03028571/2023001 (DRSS) was issued on March 22, 2024, and can be found in the NRCs
Agencywide Documents Access and Management System (ADAMS) at accession number
ML24068A087. ADAMS is accessible from the NRC web site at http://www.nrc.gov/reading-
rm/adams.html.
In our March 22, 2024, letter transmitting the inspection report, we informed Brent Van Dyke
that the apparent violations were being considered for escalated enforcement action, including a
civil penalty. In the letter, we provided Brent Van Dyke the opportunity to address the apparent
violations identified in the report by attending a predecisional enforcement conference, engaging
the NRC in Alternative Dispute Resolution (ADR) mediation, or by providing a written response
before we made our final enforcement decision. In letters dated March 25, 2024
(ML24087A149), March 27, 2024 (ML24088A188), and April 5, 2024 (ML24101A239), you,
Christopher Cruickshank and Brent Van Dyke provided responses to the apparent violations.
Based on the information developed during the inspection and information provided in written
responses dated March 25, 2004, March 27, 2024, and April 5, 2024, the NRC has determined
that two violations of NRC requirements occurred and is proceeding with enforcement action.
These violations are cited in the enclosed Notice of Violation and Proposed Imposition of Civil June 6, 2024
T. Newhof - 2 -
Penalty (Notice) and the circumstances surrounding them are described in detail in the subject
inspection report. The first violation (Violation I.A) involved four examples of the failure to use a
minimum of two independent physical controls that form tangible barriers to secure portable
moisture density gauges from unauthorized removal, whenever portable gauges are not under
the control and constant surveillance of the licensee, as required by Title 10 of the Code of
Federal Regulations (10 CFR) Part 30.34(i). Specifically, on four separate occasions a gauge
was only secured with one barrier. The root cause of the violation was determined to be a lack
of adequate management oversight to ensure that personnel were knowledgeable about gauge
security requirements and consistently implementing them.
The failure, on four occasions, to secure portable moisture density gauges with two barriers is a
significant safety and security concern because improperly secured gauges could be more
easily lost or stolen which could lead to improper handling or use of material and exposures to
members of the public. Therefore, this violation has been categorized in accordance with the
NRC Enforcement Policy at Severity Level (SL) III. The current Enforcement Policy is included
on the NRCs web site at http://www.nrc.gov/about-nrc/regulatory/enforcement/enforce-pol.html.
In accordance with the Enforcement Policy, a base civil penalty in the amount of $9000 is
considered for a SL III violation.
Because your facility has been the subject of escalated enforcement actions within the last two
inspections,1 the NRC considered whether credit was warranted for Identification and Corrective
Action in accordance with the civil penalty assessment process in Section 2.3.4 of the
Enforcement Policy. Credit for identification is not warranted as the four examples of improperly
secured gauges were identified by the NRC during inspection activities. Credit for corrective
actions is warranted based on the following: (1) taking immediate actions to properly secure
each of the four gauges; (2) no longer relying on locked truck toppers to provide a second
barrier; (3) providing adequate chains and locks to secure the gauge box to vehicles and office
storage locations; (4) emailing authorized gauge users reminding them of proper security
procedures including photographs of how gauges are to be secured in their vehicle;
(5) discussing gauge security at length during the annual Radiation Safety and Gauge Review
seminar required to be attended by all gauge users; and (6) conducting unannounced radiation
safety officer visits to gauge users in the field and at offices.
In addition, your corporate management committed to the following: (1) participating in annual
radiation training/refresher classes; (2) continuing review of radiation program audit results;
(3) reaching out to gauge users to remind them of NRC regulations and expectations for
compliance and consequences for noncompliance; (4) periodically including nuclear gauge
safety in internal weekly newsletter; and (5) continuing to include the RSO in discussions
involving the storage of gauges at current and proposed facilities.
Therefore, to emphasize the importance of properly securing portable moisture density gauges,
and in recognition of your previous escalated enforcement actions, I have been authorized, after
consultation with the Director, Office of Enforcement to issue the enclosed Notice of Violation
and Proposed Imposition of Civil Penalty (Notice) in the base amount $9000 for the SL III
violation.
1 A Severity Level III violation was issued on March 16, 2018, (EA-17-201) for the failure to secure
portable moisture density gauges with two barriers.
T. Newhof - 3 -
In addition, issuance of this Notice constitutes escalated enforcement action that may subject
you to increased inspection effort. The NRC also includes significant enforcement actions on its
web site at http://www.nrc.gov/reading rm/doc collections/enforcement/actions/.
You may choose to pay the proposed civil penalty by submitting your payment, with the invoice
enclosed to this letter, to the following address:
Office of the Chief Financial Officer
U.S. Nuclear Regulatory Commission
P.O. Box 979051
St. Louis, MO 63197
In addition, you may pay the proposed civil penalty in accordance with NUREG/BR-0254.
NUREG/BR-0254 can be found on the NRC web site at https://www.nrc.gov/reading-rm/doc-
collections/nuregs/brochures/br0254/index.html. When using NUREG/BR-0254 to pay the civil
penalty, the invoice number should be used as the enforcement action identifier when
submitting your payment through one of the approved methods listed in the brochure. The NRC
may consider a request for additional time to pay the proposed civil penalty, including the option
to enter into an installment agreement, if payment of the civil penalty as a lump sum in the
required timeframe would pose a financial hardship. To request additional time to pay, you must
submit a written request, with appropriate justification explaining your financial hardship, to
NRCCollections.Resource@nrc.gov. All requests should be submitted in sufficient time to allow
the NRC the ability to review your request for additional time to pay before the 30-day payment
period expires.
The NRC has also determined that a non-escalated Severity Level IV violation of NRC
requirements occurred (Violation II.B). This violation involved the failure to report a safety
equipment failure within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of its discovery, as required by 10 CFR 30.50(b)(2). This
violation was also evaluated in accordance with the NRC Enforcement Policy. The violation is
cited in the enclosed Notice and the circumstances surrounding it are described in detail in the
subject inspection report. The violation is being cited in the Notice because it was identified by
the inspector.
If you disagree with this enforcement sanction, you may deny the violation, as described in the
Notice, or you may request alternative dispute resolution (ADR) 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 (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, find areas of agreement, and reach a final resolution of the issues. Additional
information concerning the NRC's ADR program can be found 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 NRC's
program as a neutral third party. If you are interested in pursuing this issue through the
ADR program, please contact: (1) the ICR at 877-733-9415; and (2) Diana Bentancourt-
Roldan at 630-810-4373 within 10 days of the date of this letter. You may also contact both
ICR and Diana Betancourt-Roldan for additional information. Your submitted signed agreement
to mediate using the NRC ADR program will stay the 30-day time period for payment of the civil
T. Newhof - 4 -
penalty and the required written response, if any, as identified in the enclosed Notice, until the
ADR process is completed.
The NRC has concluded that information regarding: (1) the reason for the violations, or if
contested, the basis for disputing the violations; (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 was achieved is already adequately addressed on the docket in Inspection Report
No. 03028571/2023001 (DRSS) and your letters dated March 25, 2004, March 27, 2024, and
April 5, 2024. Therefore, you are not required to respond to this letter unless the description
therein does not accurately reflect your corrective actions or your position. In that case, or if you
choose to provide additional information, you should follow the instructions in the enclosed
Notice.
In accordance with 10 CFR 2.390 of the NRCs Agency Rules of Practice and Procedure, a
copy of this letter, its enclosures, 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 ADAMS, accessible from the NRC web site 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.
If you have any questions concerning this matter, please contact Diana Betancourt-Roldan of
my staff at (630) 810-4373.
Sincerely,
John B. Giessner
Regional Administrator
Docket No. 030-28571
License No. 21-18663-02
Enclosures: Notice of Violation and Proposed
Imposition of Civil Penalty
Civil Penalty Invoice
cc w/enclosure: Brent Van Dyke,
Radiation Safety Officer
State of Michigan
Signed by Giessner, Jack
on 06/06/24
NOTICE OF VIOLATION
AND
PROPOSED IMPOSITION OF CIVIL PENALTY
Prein & Newhof Docket No. 030-28571
Grand Rapids, Michigan License No. 21-18663-02
During a U.S. Nuclear Regulatory Commission (NRC) inspection conducted on April 13, 2023,
and September 18 through 21, 2023, two violations of NRC requirements were identified. In
accordance with the NRC Enforcement Policy, the NRC proposes to impose a civil penalty
pursuant to Section 234 of the Atomic Energy Act of 1954, as amended (Act), 42 U.S.C. 2282,
and Title 10 of the Code of Federal Regulations (10 CFR) 2.205. The particular violations and
associated civil penalty are set forth below:
I. Violation Assessed a Civil Penalty
A. Title 10 CFR 30.34(i) requires that each portable gauge licensee use a minimum of two
independent physical controls that form tangible barriers to secure portable gauges from
unauthorized removal, whenever portable gauges are not under the control and constant
surveillance of the licensee.
Contrary to the above, on April 13, September 18, September 20, and September 21,
2023, the licensee failed to use a minimum of two independent physical controls that
formed tangible barriers to secure portable gauges from unauthorized removal,
whenever portable gauges are not under the control and constant surveillance of the
licensee. Specifically, at its facilities in Kalamazoo and Grand Rapids, Michigan, and
during transport in Cadillac, Michigan, the licensee used only one tangible barrier to
secure portable gauges containing cesium-137 and americium-241.
This is a Severity Level III violation (NRC Enforcement Policy Section 6.3.c.3).
Civil Penalty - $9000 (EA-23-119)
II. Violation Not Assessed a Civil Penalty
B. Title 10 CFR 30.50(b)(2) requires that each licensee notify the NRC within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> after
the discovery of an event in which equipment is disabled or fails to function as designed
when: (i) the equipment is required by regulation or license condition to prevent releases
exceeding regulatory limits, to prevent exposures to radiation and radioactive materials
exceeding regulatory limits, or to mitigate the consequences of an accident; (ii) the
equipment is required to be available and operable when it is disabled or fails to
function; and (iii) no redundant equipment is available and operable to perform the
required safety function.
Contrary to the above, on October 6, 2022, the licensee failed to notify the NRC within
24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> after the discovery of an event in which equipment was disabled or failed to
function as designed. Specifically, the source rod on one of the licensees portable
gauges was damaged at a temporary job site on October 5, 2022, and failed to function
as designed to retract the Cs-137 source into a shielded position and the criteria in
10 CFR 30.50(b)(2)(i) through (iii) were met. However, the licensee did not notify the
NRC until October 11, 2022, six days after the discovery of this failure.
Enclosure
This is a Severity Level IV violation (NRC Enforcement Policy Section 6.9.d.1).
The NRC has concluded that information regarding the reason for the violations, the corrective
actions taken and planned to correct the violations and prevent recurrence, and the date when
full compliance was achieved is already adequately addressed on the docket in Inspection
Report No. 03028571/2023001 (DRSS), and licensee letters dated March 25, 2024,
March 27, 2024, and April 5, 2024. However, if the description therein does not accurately
reflect your position or your corrective actions, you are required to submit a written statement or
explanation pursuant to 10 CFR 2.201 within 30 days of the date of the letter transmitting this
Notice of Violation (Notice). In that case, or if you choose to respond, clearly mark your
response as a Reply to a Notice of Violation, EA-23-119, and send it to the Director, Office of
Enforcement, U.S. Nuclear Regulatory Commission, One White Flint North, 11555 Rockville
Pike, Rockville, MD 20852-2738, with a copy to the Regional Administrator, U.S. Nuclear
Regulatory Commission, Region III, 2443 Warrenville Road, Suite 210, Lisle, IL 60532-4352 and
the Document Control Desk, Washington, DC 20555-0001
The licensee may pay the civil penalty proposed above through one of the following two
methods:
1. Submit the payment with the enclosed invoice for Civil Penalty EA-23-119 issued to
Prein & Newhof to the following address:
Office of the Chief Financial Officer
U.S. Nuclear Regulatory Commission
P.O. Box 979051
St. Louis, MO 63197
2. Submit the payment in accordance with NUREG/BR-0254.
The licensee may protest the imposition of the civil penalty in whole or in part, by a written
answer addressed to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission,
within 30 days of the date of this Notice. Should the Licensee fail to answer within 30 days of
the date of this Notice, the NRC will issue an order imposing the civil penalty. Should the
licensee elect to file an answer in accordance with 10 CFR 2.205 protesting the civil penalty, in
whole or in part, such answer should be clearly marked as an Answer to a Notice of Violation
and may: (1) deny the violations 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
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 mitigation of the proposed penalty, the response should address the factors
addressed in Section 2.3.4 of the Enforcement Policy. Any written answer addressing these
factors pursuant to 10 CFR 2.205 should be set forth separately from the statement or
explanation provided pursuant to 10 CFR 2.201 but may incorporate parts of the 10 CFR 2.201
reply by specific reference (e.g., citing page and paragraph numbers) to avoid repetition. The
attention of the licensee is directed to the other provisions of 10 CFR 2.205 regarding the
procedure for imposing a civil penalty.
2
Upon failure to pay any civil penalty which subsequently has been determined in accordance
with the applicable provisions of 10 CFR 2.205 to be due, 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. 2282c.
The responses noted above, i.e., Reply to Notice of Violation, Statement as to payment of civil
penalty, and Answer to a Notice of Violation, should be addressed to: Director, Office of
Enforcement, U.S. Nuclear Regulatory Commission, One White Flint North,
11555 Rockville Pike, Rockville, MD 20852-2738, with a copy to the Regional Administrator,
U.S. Nuclear Regulatory Commission, Region III, 2443 Warrenville Road, Suite 210, Lisle, IL
60532-4352 and the Document Control Center, Washington, DC 20555-0001.
If you choose to respond, your response will be made available electronically for public
inspection in the NRC Public Document Room or in NRCs Agencywide Documents Access and
Management System (ADAMS), accessible from the NRC web site 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. If personal privacy or proprietary information is necessary to provide an
acceptable response, then please provide a bracketed copy of your response that identifies the
information that should be protected and a redacted copy of your response that deletes such
information. If you request that such material is withheld from public disclosure, you must
specifically identify the portions of your response that you seek to have withheld and provide
in detail the bases for your claim (e.g., explain why the disclosure of information will create
an unwarranted invasion of personal privacy or provide the information required by
10 CFR 2.390(b) to support a request for withholding confidential commercial or financial
information).
In accordance with 10 CFR 19.11, you may be required to post this Notice within two working
days of receipt.
Dated this 6th day of June 2024.
3
Prein & Newhof
3355 EVERGREEN DRIVE, N.E.
GRAND RAPIDS, MI 49525
Page 1 of 3
06/06/2024
Address/Customer Information Bill Information Bill Summary
Prein & Newhof Bill Number: EA-23-119 Initial Charges $9,000.00
3355 EVERGREEN DRIVE, N.E. Amount Due: $9,000.00 Discount 0.00
GRAND RAPIDS, MI 49525 Due Date: 07/06/2024 Surcharge 0.00
Interest Charges 0.00
Penalty Charges 0.00
Customer Codes Contact Us Admin Charges 0.00
Account Code: L00001338/1 Phone Number: 301-415-7554 Bill Amount $9,000.00
Fax Number: 301-415-4135 Collected 0.00
Email Address: Fees.Resource@nrc.gov Applied Credit 0.00
Adjustments 0.00
Amount Due $9,000.00
Remit to Address
Office of the Chief Financial Officer Credit Summary
U.S. Nuclear Regulatory Commission Applied Credit $0.00
P.O. Box 979051 Unapplied Credit 0.00
St. Louis, MO 63197 Credit Total $0.00
Comments:
For questions, contact (301) 415-7554 or by email at Fees.Resource@nrc.gov. For NRC debt collection procedures, including interest and penalty provisions, see 31
U.S.C. 3717, 4 CFR 101-105, AND 10 CFR 15.
For questions, contact the NRC Financial Services and Operations Branch at (301) 415-7554 or by email at Fees.Resource@nrc.gov. For NRC debt collection
procedures, including interest and penalty provisions, see 31 U.S.C. 3717, 4 CFR 101-105 and 10 CFR 15.
If this invoice is related to an Order Imposing a Civil Penalty,
Prein & Newhof is required to pay the Civil Penalty within 30 days of the Order date. If payment is in response to a Notice of Violation and Proposed Imposition of a Civil
Penalty, please follow the instructions in the Notice. The NRC may consider a request for additional time to pay the Civil Penalty, including the option to enter into an
installment agreement, if appropriate. All requests for additional time to pay an invoice must be submitted in writing, with appropriate justification, to
NRCCollections.Resource@nrc.gov, and should be submitted sufficiently ahead of time to allow the NRC time to review the request for additional time to pay within the
30-day payment period. This Invoice is related to the Civil Penalty proposed or imposed under EA-23-119 issued to Prein & Newhof. Please include this reference
number on your payment method (see attached Payments Methods Brochure).
Please see the Payment Methods brochure for instructions on how to make payment. EFFECTIVE OCTOBER 1, 2024, THE NRC WILL ONLY ACCEPT ELECTRONIC
PAYMENT METHODS. PAPER METHODS OF PAYMENT, INCLUDING CHECKS, WILL NO LONGER BE ACCEPTED. Please refer to the terms and conditions
brochure for information on interest, penalties, and administrative fees associated with delinquent payments. Please reference the invoice number on the remittance.
Page 2 of 3
Customer Information Remittance Information
L00001338/1 Office of the Chief Financial Officer
Prein & Newhof U.S. Nuclear Regulatory Commission
3355 EVERGREEN DRIVE, N.E. P.O. Box 979051
GRAND RAPIDS, MI 49525 St. Louis, MO 63197
Change of Address: This Payment References the following Bill:
Outstanding Amount Due: $9,000.00
Amount Enclosed:
Phone:
Page 3 of 3