IR 015000016/1997003

Discusses Insp Rept 15000016/97-03 on 971212 & Forwards Notice of Violation & Proposed Imposition of Civil Penalty in Amount of $5,500.00.Predecisional Enforcement Conference Conducted on 980218.List of Attendees & NRC Slides Encl

ML20217G171
Person / Time
Site:	015000016
Issue date:	03/25/1998
From:	Reyes L NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II)
To:	Vandevelde J GROUND ENGINEERING, INC. (FORMERLY STS ENGINEERING
Shared Package
ML20217G175	List: IR 015000016/1997003 ML20217G182
References
15000016-97-03, 15000016-97-3, EA-98-021, EA-98-21, NUDOCS 9804020224
Download: ML20217G171 (7)

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March 25, 1998 EA98021-Ground Engineering and Testing Service Inc.

ATTN: Mr. Jerry Vandevelde Branch Manager 13005 Middletown Industrial Blvd.

Suite D

. Louisville, KY 40223 SUBJECT: NOTICE OF VIOLATION AND PROPOSED IMPOSITION OF CIVIL PENALTY.-

$5,500 (NRC INSPECTION REPORT NO. 150 00016/97 03)

Dear Mr. Vandevelde:

This refers to the inspection conducted on December 12, 1997, at your Louisville, Kentucky facility. The purpose of the inspection was to determine whether activities conducted by your staff were performed with the proper authorization from the Nuclear Regulatory Commission (NRC). The results'of the inspection were formally transmitted to you by letter dated January 23. 1998. An open and transcribed predecisional enforcement conference was conducted in the Region II office on February 18, 1998, to-discuss the apparent violation, the root causes, and your corrective actions to preclude recurrence. A list of conference attendees and copies of the Nuclear Regulatory Commission's (NRC) presentation material are enclosed, Based on the information developed during the inspection and the information you provided during the conference, the NRC has determined that a violation of NRC requirements occurred. The violation is cited in the enclosed Notice of Violation (Notice), and the circumstances surrounding it are described in detail in the subject inspection report. The violation is associated with the serformance of NRC regulated activities in 1997 in the Non Agreement states of est Virginia and Indiana, and in certain areas of exclusive federal jurisdiction at Fort Knox. Kentucky without a specific or general license issued by the NRC. Specifically, you failed to submit a Report of Proposed Activity in Non Agreement States," (NRC Form 241) prior to the use of licensed materials at these sites and. failed to obtain a specific license when your f work activities at these sites exceeded 180 days. You stated at the predecisional enforcement conference that you did not obtain a specific or general; license beccuse it was your understanding that an NRC license for use of licensed materials in areas of NRC jurisdiction would be sought and obtained by your. corporate office in Birmingham, Alabama.

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Your failure to obtain a specific or general license resulted in the NRC being

. unaware, for.an extended period, that activities involving the use of q radioactive materials were being conducted by your company in areas of NRC 4 l jurisdiction. Notification of the NRC is important because the NRC, rather than.the State of Kentucky, regulates the use of licensed material in the )

states of West Virginia. Indiana.- and in areas of exclusive federal

.-jurisdiction such as Fort Knox, Kentucky. Because of-your . failure to notify, ,

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the NRC was denied an opportunity to verify that nuclear gauges (containing i

radioactive materials) possessed under your Commonwealth of Kentucky license would be properly used in areas subject to NRC jurisdiction.

At the conference, you indicated that: (1) your corporate office assumed responsibility for handling all licensing activities in 1997: (2) you did not know who was going to be responsible for licensing at the corporate office:

and (3) you never received a copy of any NRC license or reciprocity permit from the corporate office. From your experience filing with the NRC for reciprocity in 19% and operating under your Kentucky license, it should have been obvious to you that an NRC license and reciprocity permit impose limitations and conditions on your operations. You needed to have a copy of any reciprocity agreement or NRC license that your corporate office had obtained for you so that you would know the conditions and limitations under

- which you were required to operate when in NRC jurisdiction. Additionally, you should have been aware that 10 CFR 19.11 requires that you post the NRC license, license conditions, or documents incorporated into a licerise by reference, and amendments thereto.

Even after the need to comply with the teres of your Kentucky license was emphasized by a Kentucky inspection in 1997, and although you were reminded at that time of the need to file for reciprocity or have an NRC license for your ,

operations conducted in NRC jurisdiction, you still failed to contact your l corporate office to determine if your activities in areas of NRC jurisdiction j were properly authorized or to obtain a copy of the documentation so that you

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would know the limitations and conditions thereof. Additionally, your Kentucky license was amended in September 1997 to clearly state that it did not authorize use of licensed material in areas under exclusive federal jurisdiction.

In light of the above, the failure to obtain an NRC license or file for reciprocity represents careless disregard as defined in the " General Statement of Policy and Procedures for NRC Enforcement Actions" (Enforcement Policy)

NUREG 1600,Section IV.C. Accordingly, this failure is classified at Severity Level III in accordance with the " General Statement of Policy and Procedures for NRC Enforcement Actions" (Enforcement Policy), NUREG 1600.

In accordance with the Enforcement Policy, a base civil penalty in the amount of $2750 is considered for a Severity Level III violation. Since the violation was associated with careless disregard, the NRC considered whether credit was warranter' for Identification and Corrective Action in accordance

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with the civil penalty assessment process described in Section VI.B.2 of the Enforcement' Policy. Credit for identification is not warranted, since the

. violations were initially identified by the Commonwealth of Kentucky and the IRC. Your corrective actions, as indicated at the predecisional enforcement conference, included initiating actions to file the necessary forms to obtain a proper NRC license for.1997 'end considering anticipated uses of licensed material;.for calendar year 1998 with the intent to file the necessary documents;to obtain- a proper NRC license for 1998 before any such licensed

' material is used in areas of NRC jurisdiction. In addition, at the conference.-you stated that in the future, you would maintain at your Kentucky y .

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Ground Engineering and Testing 3 ,

Service. Inc. I site an appropriate NRC license for conducting activities in areas of NRC jurisdiction. However, your corrective actions were not prompt, in that you were notified by the NRC of your failure to obtain an NRC license on December 12. 1997. yet did not desist in the use of licensed materials in areas of NRC jurisdiction until December 18, 1997. Thus, based on these ,

facts the NRC determined that credit is not warranted for Identification or i Corrective Action. l l

Therefore, to emphasize the importance of conducting NRC activities only after adhering to appropriate reciprocity requirements so that the NRC can verify that the activities are conducted safely and in accordance with requirements, 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 for twice the base amount or $5.500 for the Severity Level III violation. Issuance of this Notice constitutes escalated enforcement action, that may subject you to increased inspection effort. In addition, you should be aware that future similar violations may result in a prohibition against conducting licensed activities in NRC jurisdiction.

You are required to respond to this letter and should follow the instructions specified in the enclosed Notice when preparing your response. The NRC will use your response, in part, to determine whether further en'orcement action is necessary to ensure compliance with regulatory requirements.

In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice." a copy of this letter, its enclosures, and any response will be placed in the NRC Public Document Room (PDR). To the extent possible, your response should not include any personal privacy, proprietary, or safeguards information so that it can be placed in the PDR without redaction.

If you have any questions regarding this letter please contact Douglas M.

Collins. Director. Division of Nuclear Materials Safety at (404) 562-4700.

Sincerely

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Orignial signed by L. Reyes Luis A. Reyes Regional Administrator Docket No. 150 00016 License No. Kentucky 201 431-51 Enclosures: 1. Notice of Violation 2. List of Attendees 3. NRC Slides

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Ground Engineering and Testing 4 Service. Inc.

cc w/encis:

Commonwealth of Kentucky

. State of Indiana

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Atlanta Testing and Engineering, Inc.

3468 Highway 120. Suite B Duluth. GA 300%

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