[Federal Register Volume 74, Number 51 (Wednesday, March 18, 2009)]
[Notices]
[Pages 11610-11612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5812]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 03033722, License No. 31-30187, EA-08-158; NRC-2009-0118]


In the Matter of Quality Inspection Services, Inc.: Confirmatory 
Order Modifying License (Effective Immediately)

I

    Quality Inspection Services, Inc. (QISI) (Licensee) is the holder 
of a byproduct materials license issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR Part 34. The license 
was last renewed on November 28, 2005 (Amendment 8), and was last 
amended on March 11, 2008 (Amendment 12). The license authorizes the 
operation of the QISI facility in accordance with conditions specified 
therein. The facility is located on the Licensee's site in Manchester, 
Connecticut.

II

    The NRC Office of Investigations (OI) initiated an investigation on 
March 16, 2007, in part, to determine whether QISI willfully performed 
unauthorized radiography operations. Based on the evidence developed 
during the OI investigation, which was completed on November 30, 2007, 
the NRC identified an apparent willful violation involving QISI failing 
to maintain utilization logs for sealed sources, as required by 10 CFR 
34.71. A description of this apparent violation and a factual summary 
of the results of the investigation were sent to QISI in an NRC letter 
dated August 15, 2008.
    At the NRC's request, QISI attended a predecisional enforcement 
conference (PEC) on August 27, 2008, to discuss the apparent violation 
and the results of the OI investigation. After considering the 
information presented in the PEC and the evidence developed during the 
investigation, the NRC determined that the violation occurred and was 
willful. Specifically, between November 15, 2006, and March 2, 2007, 
QISI's former site radiation safety officer (RSO) willfully failed to 
log the following information for each sealed source: (1) A description 
of the radiographic exposure device or transport or storage container 
in which the sealed source is located; (2) the identity and signature 
of the assigned radiographer; and, (3) the plant or site where the 
source was used, and when, including the dates on which the source was 
removed and returned to storage. In a letter dated September 15, 2008, 
the NRC issued QISI a Notice of Violation and Proposed Imposition of 
Civil Penalty (Notice) in the amount of $6,500 for this violation.
    Because the violation was willful, the September 15, 2008 NRC 
letter included an offer to QISI to use the Alternative Dispute 
Resolution (ADR) program, in an attempt to resolve any issues it had 
with the enforcement action. The ADR program is a process in which a 
neutral mediator with no decision-making authority assists the parties 
in reaching an agreement on resolving any differences regarding the 
dispute. In response, on October 22, 2008, QISI requested the use of 
the ADR program.

III

    On January 22, 2009, the NRC and QISI met in an ADR session 
mediated by a professional mediator, arranged through Cornell 
University's Scheinman Institute on Conflict Resolution. During that 
ADR session, a preliminary settlement agreement was reached. This 
Confirmatory Order is the result of that agreement, the elements of 
which consisted of the following:
    1. The NRC and QISI agree that the violation of 10 CFR 34.71, 
referenced in the NRC letter, dated September 15, 2008, occurred, as 
stated in the referenced Notice.
    2. As documented in the September 15, 2008 NRC letter, QISI has 
taken several corrective actions in response to the willful violation, 
as well as other violations identified in the Notice of Violation and 
Proposed Imposition of Civil Penalty. Those actions, which the NRC 
agrees were prompt and comprehensive include: ensuring that employees 
involved in radiography activities have reviewed QISI's Operations and 
Emergency (O&E) Manual, and reinforcing expectations regarding the 
existing Employee Concerns Program, specifically emphasizing the 
opportunity for employees to raise safety concerns.
    3. As a result of the ADR session, QISI agrees to take the 
following additional actions:
    a. Revise the existing O&E Manual to emphasize the importance of 
safe performance of radiography, strict compliance with requirements, 
all staff being complete and accurate in all communications, and all 
staff understanding that engaging in any willful misconduct will not be 
tolerated.
    b. Retrain all employees regarding the revisions to the O&E manual.
    c. Add a radiation safety component to the existing Corporate 
Newsletter, to be issued at least quarterly, focusing on radiation 
safety updates. In the first newsletter issued following the NRC 
Confirmatory Order confirming these commitments, the front page of that 
newsletter will include a message from the QISI President which 
emphasizes the importance of safe performance of radiography, strict 
compliance with requirements, all staff being complete and accurate in 
all communications, and all staff understanding that engaging in any 
willful misconduct will not be tolerated.
    d. Develop a video recording (DVD) that will be required viewing by 
all company employees who are involved in any manner in activities 
subject to NRC jurisdiction, and will also be placed on the QISI Web 
site for employee viewing and access. The video will include opening 
remarks by either the QISI President or the QISI Executive Vice 
President providing the expectations set forth in the Corporate 
Newsletter described in Item 3.c.
    e. Place the DVD referenced in Item 3.d on the QISI public Web 
site, and offer to make the DVD available for a presentation at a 
national industry conference (e.g. American Society for Nondestructive 
Testing).

[[Page 11611]]

    f. Increase the audits of each radiographer working in areas of NRC 
jurisdiction to three times annually for two years following issuance 
of this Confirmatory Order, and have these audits conducted by the 
Corporate Radiation Safety Officer (RSO).
    g. Include, as part of the next two NRC required annual reviews of 
the radiation safety program, an inquiry (independent of the Corporate 
RSO) of all radiographers working in NRC jurisdiction. The inquiry will 
assess the effectiveness of adherence to NRC requirements, and 
implementation of the actions set forth above. The inquiry will 
encourage all radiographers to raise any concerns they have, and to do 
so anonymously if they so chose. The results will be summarized and 
provided to the QISI President.
    h. Complete the actions set forth in Items 3.a through 3.e within 
six months of the Confirmatory Order issued to confirm this agreement. 
Complete the actions in Items 3.f through 3.g within two years of the 
Confirmatory Order.
    i. Upon completion of the actions set forth in Items 3.a through 
3.e, send the NRC a letter summarizing the completed actions within 30 
days confirming that each of those actions has been completed. Upon 
completion of the actions set forth in Items 3.f through 3.g, send the 
NRC another letter summarizing the completed actions within 30 days, 
confirming that those actions have been completed.
    4. In light of the corrective actions that QISI took to correct the 
violations, as noted in Item 2, as well as the additional actions QISI 
committed to take, as described in Item 3, the NRC agrees to reduce the 
amount of the civil penalty to $500. QISI agrees to pay this amount.
    On March 4, 2009, the Licensee consented to issuing this Order with 
the commitments, as described in Section V below. The Licensee further 
agreed that this Order is to be effective upon issuance, and that the 
Licensee has waived its right to a hearing.

IV

    Since the Licensee has agreed to take additional actions to address 
NRC concerns, as set forth in Item III above, the NRC has concluded 
that its concerns can be resolved through issuance of this Order.
    I find that the Licensee's commitments as set forth in Section V 
are acceptable and necessary and conclude that with these commitments, 
the public health and safety are reasonably assured. In view of the 
foregoing, I have also determined that public health and safety require 
that the Licensee's commitments be confirmed by this Order. Based on 
the above and the Licensee's consent, this Order is immediately 
effective upon issuance.

V

    Accordingly, pursuant to Sections 81, 161b, 161i, 161o, 182 and 186 
of the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR 2.202 and 10 CFR Part 34, it is hereby ordered, 
effective immediately, that QISI shall:
    A. Revise the existing O&E Manual to emphasize the importance of 
safe performance of radiography, strict compliance with requirements, 
all staff being complete and accurate in all communications, and all 
staff understanding that engaging in any willful misconduct will not be 
tolerated;
    B. Retrain all employees regarding the revisions to the O&E manual;
    C. Add a radiation safety component to the existing Corporate 
Newsletter, to be issued at least quarterly, that will focus on 
radiation safety updates, and have the front page of the first 
newsletter issued following this NRC Confirmatory Order confirming 
these commitments include a message from the QISI President which 
emphasizes the importance of safe performance of radiography, strict 
compliance with requirements, all staff being complete and accurate in 
all communications, and all staff understanding that engaging in any 
willful misconduct will not be tolerated;
    D. Develop a video recording (DVD) that will be required viewing by 
all company employees who are involved in any manner in activities 
subject to NRC jurisdiction, and will also be placed on the QISI Web 
site for employee viewing and access; the video will include opening 
remarks by either the QISI President or the QISI Executive Vice 
President providing the expectations set forth in the Corporate 
Newsletter described in Item C;
    E. Place the DVD referenced in Item D on the QISI public Web site, 
and offer to make the DVD available for a presentation at a national 
industry conference (e.g., American Society for Nondestructive 
Testing);
    F. Increase the audits of each of the radiographers working in 
areas of NRC jurisdiction to three times annually for two years 
following issuance of this Confirmatory Order, and have these audits 
conducted by the Corporate RSO;
    G. Include, as part of the next two NRC required annual reviews of 
the radiation safety program, an inquiry (independent of the Corporate 
RSO) of all radiographers working in NRC jurisdiction; ensure the 
inquiry assesses the effectiveness of adherence to NRC requirements, 
and implementation of the actions set forth above in Items V.A-V.F; and 
use the inquiry to encourage all radiographers to raise any concerns 
they have, and to do so anonymously if they so chose;
    H. Complete the actions set forth in Items V.A-V.E within six 
months of the date of this Confirmatory Order, and complete the actions 
in Items V.F-V.G within two years of the date of this Confirmatory 
Order;
    I. Upon completion of the actions set forth in Items V.A-V.E, send 
the NRC a letter, within 30 days, confirming that those actions have 
been completed;
    J. Upon completion of the actions set forth in Items V.F-V.G, send 
the NRC another letter, within 30 days, confirming that those actions 
have been completed; and,
    K. Pay a civil penalty in the amount of $500, within 30 days of the 
date of this Confirmatory Order.
    The Regional Administrator, Region I, may, in writing, relax or 
rescind any of the above conditions upon demonstration by the Licensee 
of good cause.

VI

    Any person adversely affected by this Confirmatory Order, other 
than the Licensee, may request a hearing within 20 days of its 
issuance. Where good cause is shown, consideration will be given to 
extending the time to request a hearing. A request for extension of 
time must be directed to the Director, Office of Enforcement, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, and include a 
statement of good cause for the extension.
    A request for a hearing must be filed in accordance with the NRC E-
Filing rule, which the NRC promulgated in August 2007, 72 FR 49,139 
(Aug. 28, 2007). The E-Filing process requires participants to submit 
and serve documents over the Internet or, in some cases, to mail copies 
on electronic optical storage media. Participants may not submit paper 
copies of their filings unless they seek a waiver in accordance with 
the procedures described below.
    To comply with the procedural requirements associated with E-
Filing, at least five (5) days prior to the filing deadline the 
requestor must contact the Office of the Secretary by e-mail at 
[email protected], or by calling (301) 415-1677, to request: (1) a 
digital ID certificate, which allows the participant (or its counsel or 
representative) to digitally sign documents and access the E-Submittal 
server for any NRC proceeding in which it is participating; and/or (2) 
creation of

[[Page 11612]]

an electronic docket for the proceeding [even in instances when the 
requestor (or its counsel or representative) already holds an NRC-
issued digital ID certificate]. Each requestor will need to download 
the Workplace Forms ViewerTM to access the Electronic 
Information Exchange (EIE), a component of the E-Filing system. The 
Workplace Forms ViewerTM is free and is available at http://www.nrc.gov/site-help/e-submittals/install-viewer.html. Information 
about applying for a digital ID certificate also is available on NRC's 
public Web site at http://www.nrc.gov/site-help/e-submittals/apply-certificates.html.
    Once a requestor has obtained a digital ID certificate, had a 
docket created, and downloaded the EIE viewer, it can then submit a 
request for a hearing through EIE. Submissions should be in Portable 
Document Format (PDF) in accordance with NRC guidance available on the 
NRC public Web site at http://www.nrc.gov/site-help/e-submittals.html. 
A filing is considered complete at the time the filer submits its 
document through EIE. To be timely, electronic filings must be 
submitted to the EIE system no later than 11:59 p.m. Eastern Time on 
the due date. Upon receipt of a transmission, the E-Filing system time-
stamps the document and sends the submitter an e-mail notice confirming 
receipt of the document. The EIE system also distributes an e-mail 
notice that provides access to the document to the NRC Office of the 
General Counsel and any others who have advised the Office of the 
Secretary that they wish to participate in the proceeding, so that the 
filer need not serve the document on those participants separately. 
Therefore, any others who wish to participate in the proceeding (or 
their counsel or representative) must apply for and receive a digital 
ID certificate before a hearing request is filed so that they may 
obtain access to the document via the E-Filing system.
    A person filing electronically may seek assistance through the 
``Contact Us'' link located on the NRC Web site at http://www.nrc.gov/site-help/e-submittals.html or by calling the NRC technical help line, 
which is available between 8:30 a.m. and 4:15 p.m., Eastern Time, 
Monday through Friday. The electronic filing Help Desk can be contacted 
by telephone at 1-866-672-7640 or by e-mail at [email protected].
    Participants who believe that they have good cause for not 
submitting documents electronically must file a motion, in accordance 
with 10 CFR 2.302(g), with their initial paper filing requesting 
authorization to continue to submit documents in paper format. Such 
filings must be submitted by (1) first class mail addressed to the 
Office of the Secretary of the Commission, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, Attention: Rulemaking and 
Adjudications Staff; or (2) courier, express mail, or expedited 
delivery service to the Office of the Secretary, Sixteenth Floor, One 
White Flint North, 11555 Rockville Pike, Rockville, MD 20852, 
Attention: Rulemaking and Adjudications Staff. Participants filing a 
document in this manner are responsible for serving the document on all 
other participants. Filing is considered complete by first-class mail 
as of the time of deposit in the mail, or by courier, express mail, or 
expedited delivery service upon depositing the document with the 
provider of the service.
    Documents submitted in adjudicatory proceedings will appear in 
NRC's electronic hearing docket which is available to the public at 
http://ehd.nrc.gov/EHD_Proceeding/home.asp, unless excluded pursuant 
to an order of the Commission, an Atomic Safety and Licensing Board, or 
a Presiding Officer. Participants are requested not to include personal 
privacy information, such as social security numbers, home addresses, 
or home phone numbers in their filings. With respect to copyrighted 
works, except for limited excerpts that serve the purpose of the 
adjudicatory filings and would constitute a Fair Use application, 
participants are requested not to include copyrighted materials in 
their works.
    If a person other than (the Licensee) requests a hearing, that 
person shall set forth with particularity the manner in which his 
interest is adversely affected by this Order and shall address the 
criteria set forth in 10 CFR 2.309(d) and (f).
    If the hearing is requested by a person whose interest is adversely 
affected, the Commission will issue an Order designating the time and 
place of any hearing. If a hearing is held, the issue to be considered 
at such hearing shall be whether this Confirmatory Order should be 
sustained.
    In the absence of any request for hearing, or written approval of 
an extension of time in which to request a hearing, the provisions 
specified in Section V above shall be final 20 days from the date of 
this Order without further order or proceedings. If an extension of 
time for requesting a hearing has been approved, the provisions 
specified in Section V shall be final when the extension expires if a 
hearing request has not been received. A request for hearing shall not 
stay the immediate effectiveness of this order.

    For The Nuclear Regulatory Commission.

    Dated this the 10th day of March 2009.
Marc L. Dapas,
Deputy Regional Administrator.
[FR Doc. E9-5812 Filed 3-17-09; 8:45 am]
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