EA-96-130 - Schleede-Hampton Associates, Inc.
Mr. Stephen Schleede, Principal
Schleede-Hampton Associates, Inc.
102 West Illinois Street, Suite D
St. Charles, IL 60174
SUBJECT: NOTICE OF VIOLATION (NRC INSPECTION REPORT NO. 999-90003/96003(DNMS))
Dear Mr. Schleede:
This refers to the special safety inspection conducted April 3-8, 1996, at the offices of Schleede-Hampton Associates, Inc. (SHA), St. Charles, Illinois. SHA is licensed by the State of Illinois (an Agreement State) to use cesium-137 and americium-241 sealed sources in devices to measure the moisture and density of soil.
On October 26, 1995, the NRC issued a license to an SHA branch office in Birmingham, Michigan (a Non-Agreement State) - authorizing SHA to use byproduct materials in Non-Agreement States. On January 26, 1996, the NRC conducted an initial inspection of the SHA Birmingham, Michigan, office. Information developed during the inspection indicated that SHA had used licensed materials in the State of Michigan from April 10, 1991, to October 6, 1995, without having been issued a specific license by the NRC or having filed NRC Form 241, "Report of Proposed Activities in Non-Agreement States," with the NRC. The inspection report was mailed to SHA on April 16, 1996. During a telephone call on April 26, 1996, you indicated that the information documented in the inspection report was accurate and that SHA did not need to meet with the NRC in an enforcement conference or provide a written response to the inspection report.
Based on the information developed during the inspection, the NRC determined that a significant violation of NRC requirements occurred. The violation is cited in the enclosed Notice of Violation and the circumstances surrounding it are described in the inspection report. Specifically, SHA failed to obtain an NRC specific or general license prior to conducting licensed activities in a Non-Agreement State.
The failure to obtain an NRC license or file NRC Form 241 prior to conducting licensed activities in a Non-Agreement State is a matter of significant regulatory concern because the NRC is denied the opportunity to assure that activities are conducted in accordance with all NRC radiation safety requirements. Therefore, the violation is categorized, in accordance with the "General Statement of Policy and Procedure for NRC Enforcement Activities," (Enforcement Policy), NUREG-1600, at Severity Level III.
In accordance with the Enforcement Policy, a base civil penalty in the amount of $5,000 is considered for a Severity Level III violation. Because SHA has not been the subject of an escalated enforcement action, by either an Agreement State or the NRC, within the last two years, the NRC considered whether credit was warranted for Corrective Action in accordance with the civil penalty assessment process in Section VI.B.2 of the Enforcement Policy. Credit for corrective action was given because SHA informed the NRC of the locations and dates that work was performed in Non-Agreement States. Also, an NRC license was issued to SHA on October 26, 1995, correcting the violation and preventing its recurrence.
Therefore, to encourage prompt and comprehensive corrective actions, I have decided not to propose a civil penalty in this case. However, significant violations in the future could result in a civil penalty.
The NRC has concluded that information regarding the reason for the violation, the corrective actions taken and planned to correct the violation and prevent recurrence and the date when full compliance was achieved is already adequately addressed on the docket in Inspection Report No. 999-90003/96003(DNMS) and by NRC Byproduct Material License No. 21-26657-01. Therefore, you are not required to respond to this letter unless the description herein does not accurately reflect your corrective actions or your position. In that case, or if you choose to respond, you should follow the directions specified in the enclosed Notice.
In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosure, and your response (should SHA choose to respond) 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.
Sincerely, Original Signed by A. Bill Beach Hubert J. Miller Regional Administrator
Docket No. 999-90003
Enclosure: Notice of Violation
cc w/encl: Illinois Department of Nuclear Safety
Schleede-Hampton Associates, Inc. Docket No. 999-90003 St. Charles, Illinois General License EA 96-130
During an NRC inspection conducted April 3-8, 1996, a violation of NRC requirements was identified. In accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," NUREG-1600, the violation is listed below:
10 CFR 30.3 requires in relevant part, that no person shall possess or use byproduct material except as authorized by a specific or general license issued by the NRC.
10 CFR 150.20(a) provides, in part, that any person who holds a specific license from an Agreement State is granted an NRC general license to conduct the same activity in Non-Agreement States subject to the provisions of 10 CFR 150.20(b).
10 CFR 150.20(b)(1) requires, in part, that any person engaging in activities in non-Agreement States shall, at least 3 days before engaging in each such activity, file 4 copies of NRC Form 241, "Report of Proposed Activities in Non-Agreement States," with the Regional Administrator of the appropriate NRC regional office.
Contrary to the above, from April 10, 1991, to October 6, 1995, Schleede-Hampton Associates, Inc., a licensee of the State of Illinois (an Agreement State), used licensed materials, iridium-192 and americium-241, at various locations throughout the State of Michigan (a non-Agreement State) without a specific license issued by the NRC and without filing Form 241 with the NRC. (01013)
This is a Severity Level III violation (Supplement VI).
The NRC has concluded that information regarding the reason for the violation, the corrective actions taken and planned to correct the violation and prevent recurrence and the date when full compliance was achieved is already adequately addressed on the docket in Inspection Report No. 999-90003/96003(DNMS) and by NRC Byproduct Material License No. 21-26657-01. However, you are required to submit a written statement or explanation pursuant to 10 CFR 2.201 if the description therein does not accurately reflect your corrective actions or your position. In that case, or if you choose to respond, clearly mark your response as a "Reply to a Notice of Violation," and send it to the U.S. Nuclear Regulatory Commission, ATTN: Document Control Desk, Washington, D.C. 20555 with a copy to the Regional Administrator, NRC Region III, 801 Warrenville Road, Lisle, Illinois 60532-4351, within 30 days of the date of the letter transmitting this Notice of Violation.
Dated at Lisle, Illinois
this 22 day of May 1996