ML20155H076

Forwards Insp Rept 99990002/98-02 for Southern Processing Enterprises on 980702-1009 & NOV Re Unauthorized Removal,In Late 1997,of Two Fixed Gauges Containing 250 Mci of Cs-137

ML20155H076
Person / Time
Issue date:	10/30/1998
From:	Reyes L NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II)
To:	Childress J AFFILIATION NOT ASSIGNED
Shared Package
ML20155H080	List: ML20155H076 ML20155H100 ML20155H112
References
REF-QA-99990002-981030 99990002-98-02, 99990002-98-2, EA-98-495, NUDOCS 9811090332
Download: ML20155H076 (5)

Text

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I October 30, 1998 EA 98-495 Southem Processing Enterprises

. ATTN: Mr. Joe Childress President Box 719 Beaver, West Virginia 25813

SUBJECT:

NOTICE OF VIOLATION (NRC INSPECTION REPORT NO. 999-90002/98-02) a

Dear Mr. Childress:

This refers to the special, announced onsite inspection of Southern Processing Enterprises (SPE), conducted on July 2 and October 9,1998, at a temporary job site near Knoxville, Tennessee and at your facility in Beckley, West Virginia, respectively. The enclosed report presents the results of this inspection.

_ Based on the information developed during the inspection, the Nuclear Regulatory Commission (NRC) has determined that violations of NRC requirements occurred. These violations are cited in the enclosed Notice of Violation (Notice), and the circumstances surrounding them are described in detail in the subject inspection report. Violation A involves the unauthorized-removal, in late 1997, of two generally licensed fixed gauges containing 250 millicuries (mci) of cesium 137 (Cs-137). The gauges were removed by an individual who was neither trained nor licensed to perform such activities. The individual removed the gauges, from their fixed >

position, by cutting around the pipe where the gauges were attached. The gauges were placed in storage pending their transfer.

.Vioistion B involves the failure to properly transfer these gauges. Specifically, the generally licensed gauges were inadvertently transferred in May 1998, to facilities in Kentucky and Tennessee. These facilities did not hold specific licenses to possess byproduct material, and SPE did not meet the requirement of 10 CFR 31.5 to transfer the byproduct material to a general licensee. SPE identified the unauthorized transfer and notified both the vendor of these generally licensed gauges and the Commonwealth of Kentucky, who in turn notified the State of

Tennessee and the NRC Region ll office. -\ g i

The removal and unauthorized transfer of the generally licensed gauges resulted in minimal \

safety consequences to the public. Although subsequent investigation determined that one of

' the gauges was transferred with the shutter in the open position, the radioactive source was effectively shielded by surrounding piping, which resulted in minimal dose rates and little potential exposure to individuals handling the gauge. During the inspection, you acknowledged e , your awareness of the requirements for transferring the devices; however, you failed N

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to ensure that the transfers of the gauges were performed correctly. Both Violations A and B l could have been avoided had you employed the services of a trained and licensed individual to perform the gauge removal. Because these activities were conducted by a technically

! unqualified individual and, under different circumstances could have placed you and others at l risk for radiological exposure, these violations are classified in the aggregate in accordance with j the " General Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement

Policy), NUREG-1600 as a Severity Level lli problem.

l Based on our review of the inspection findings and your corrective actions described during our Inspection on July 2 and October 9,1998, the NRC has concluded that we have sufficient information to make an enforcement decision without the need for a predecisional enforcement conference.

[ Because your facility has not been the subject of escalated enforcement actions within the last

two years, the NRC considered whether credit was warranted for Corrective Action in j accordance with the civil penalty assessment process described in Section VI.B.2 of the i i

Enforcement Policy. Your corrective actions included: (1) immediate notification of the vendor l and the Commonwealth of Kentucky; (2) prompt follow-up on the status of the gauges at the i 4

ecipient locations; and (3) permanent discontinuation of all generally licensed gauge activities. l As noted below, the decision to assess credit for corrective action will be subject to your written l

confirmation that the actions previously described to the staff have been or are being taken.

Therefore, to encourage prompt identification and comprehensive correction of violations, and in recognition of the absence of previous escalated enforcement action, I have been authorized not to propose a civil penalty at this time. However, significant violations in the future could result in a civil penalty. In addition, issuance of this Severity Level 111 problem constitutes escalated enforcement action, that may subject you to increased inspection effort.

You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response. For your consideration and convenience, NRC Information Notice 96-28, " SUGGESTED GUIDANCE RELATING TO DEVELOPMENT AND IMPLEMENTATION OF CORRECTIVE ACTION,"is enclosed. The NRC will use your response, in part, to determine whether further enforcement action is necessary to ensure compliance with regulatory requirements.

As provided for in the enclosed Notice, you are required to include a description of the reasons for the violation, if admitted, and your corrective action. This description should address the actions taken following identification and the long term comprehensive actions taken or that will be taken to prevent recurrence. Your response should be submitted under oath or affirmation

' and may reference or include pieviously docketed correspondence if the correspondence adequately addresses the required response. If the NRC is satisfied with your response, you i will be notified that this enforcement action is completed. However, if your documented 1

corrective action is not sufficiently prompt and comprehensive such that a civil penalty may be warranted, we may telephone you or schedule a predecisional enforcement conference with you, in addition, if you dispute any of the enclosed violations or their severity levels, you should describe the basis for the dispute in your response. Further, you may request that an enforcement conference be held, in which case, please advise Mr. Mark Lesser at (404) 562 4731, within seven days of the date of this letter. In the absence of such a request but where matters are disputed, we may also elect to hold an enforcement conference. In the

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Southern Processing Enterprises 3 event that a conference is to be held, it will be scheduled at least two weeks after our receipt of l your written response to the Notice. Following review of any disputed information and the  ;

l record of the conference, if held, a decision will be made to modify, withdraw, or affirm the '

Notice and, if warranted, Issue a civil penalty.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter, its l enclosures, and your response will be placed in the NRC Public Document Room (PDR).

Sincerely, original signed by J. Johnson for:

i Luis A. Reyes Regional Administrator Docket No. 999-90002 License No. General Licensee

Enclosures:

1. Notice of Violation

2. Inspection Report No. 999-90002/98-02

3. NRC Information Notice 96-28 cc w/o enci 3

State of West Virginia Commonwealth of Kentucky State of Tennessee i

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