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EA-96-288 - Middle Monongahela Industrial Dev. Assoc.,
Inc.

EA 96-288

Middle Monongahela Industrial
Development Association, Inc (MIDA)
ATTN: Ms. Lue Anne Pawlick
Post Office Box 491
Donora Industrial Park
Donora, Pennsylvania 15033

SUBJECT: CONFIRMATORY ORDER

Dear Ms. Pawlick:

Attached is a Confirmatory Order which requires that you adhere to several commitments that you made to Mr. Charles W. Hehl and other members of the NRC Region I staff during a telephone conversation on Friday, August 9, 1996 regarding the vacated GRD Steel Corporation (GRD) facility at Mid Mound Center, Route 136, East Monongahela, Pennsylvania. The basis for this action is described in the enclosed Order. The Order requires that you: (1) assure that you maintain control of the NRC-licensed gauges possessed at Mid Mound Center, Route 135, East Monongahela, Pennsylvania and that the gauges will remain locked at all times; (2) request additional patrols from the local police in the area, until such time as the gauges are transferred to an authorized recipient; (3) perform daily walk-throughs of the plant to ensure that the gauges had not been tampered with; (4) in the absence of obtaining a license from the NRC to possess the gauges within 90 days from the date of this Order, transfer the gauges either back to the manufacturer, or to another authorized recipient; and (5) by August 19, 1996 inform the NRC under oath or affirmation regarding the specific actions MIDA will take to comply with conditions 1, 2, and 3 above.

Pursuant to Section 223 of the Atomic Energy Act of 1954, as amended, any person who willfully violates, attempts to violate, or conspires to violate, any provision of this Order shall be subject to criminal prosecution as set forth in that section. Violation of this order also may subject the person to a civil monetary penalty. Failure to comply with the provisions of this Confirmatory Order may result in further enforcement action. Questions concerning this Order should be addressed to Mr. James Lieberman, Director, Office of Enforcement, who may be reached at (301) 415-2741.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, the enclosure, and your response will be placed in the NRC's 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. However, if you find it necessary to include such information, you should clearly indicate the specific information that you desire not to be placed in the PDR, and provide the legal basis to support your request for withholding the information from the public.

The responses directed by this letter are not subject to the clearance procedures of the Office of Management and Budget, as required by the Paperwork Reduction Act of 1980, Pub. L. No. 96-511.

                           Sincerely,



                           James Lieberman, Director
                           Office of Enforcement 

Docket No. 99990001
Non-Licensee

Enclosure: As Stated

cc w/encl:
Commonwealth of Pennsylvania

P. K. Ghosh, President
GRD Steel Corporation
P. O. Box 111
Monongahela, PA 15063

In the Matter of                              )
                                              ) 
Middle Monongahela Industrial                 )                Non-License 
Development Association, Inc (MIDA)           )                EA 96-288

Middle Monongahela Industrial Development Association, Inc. (MIDA) is a non-profit organization that exists in Monongahela County, PA for the purpose of encouraging businesses to locate in that geographical area. One of the business entities that existed in the area was GRD Steel Corporation (GRD), a company engaged in the manufacturing of carbon steel. GRD was located at the Mid Mound Center, Route 136, East Monongahela, Pennsylvania. GRD is a licensee of the NRC, specifically, the holder of NRC License No. 37-30147-01 issued by the Nuclear Regulatory Commission (NRC or Commission) on February 6, 1995 pursuant to 10 CFR Part 30. License No. 37-30147-01 authorizes the possession and use of up to 10 millicuries of Cobalt-60 in sealed sources (with a maximum activity per source of 3.3 millicuries).

II

GRD possessed two gauges each containing approximately 3.3 millicuries of Cobalt-60, a radioactive material, at its Mid Mound Center facility. GRD has ceased operations (the steel mill had been shut down). As a result of its purchase at a sheriff foreclosure sale of property of GRD at the Mid Mound Center, MIDA now: (1) holds the title to both GRD's gauges and GRD's Mid Mound Center facility in East Monongahela; and (2) is in possession of the two gauges each containing Cobalt-60, a highly radioactive byproduct material.

In order to receive or possess byproduct material, an NRC license is required by the Atomic Energy Act of 1954, as amended, and the Commission's regulations in 10 CFR 30.3. MIDA does not have a license to receive or possesses this byproduct material.

It does appear that MIDA has taken some action to maintain security of the gauges because the gauges have been maintained with their shutters locked in the closed position. However, the NRC was recently informed that the building where the gauges are possessed has been subject to at least one break-in. The gauges were not stolen or damaged. Since the break-in, the NRC understands that the perpetrators have been apprehended, that local police patrols are occurring, and daily walk-throughs by a local president of the steel union are being conducted.

III

These gauges contain radioactive material which, if not properly handled or secured, could cause a member of the public to receive a significant radiation exposure. The NRC must be able to ensure that radioactive byproduct material subject to NRC regulation only be possessed by persons having an NRC license authorizing such possession, and that security of the radioactive material is maintained at all times to ensure that it is not lost or stolen. MIDA has not met these conditions. Therefore, on August 9, 1996, Mr. Charles W. Hehl and other members of the NRC Region I office contacted Ms. Lue Anne Pawlick of MIDA during which MIDA committed to implement the terms in Section IV of this Order and agreed to waive their rights to a hearing.

I find that MIDA's commitments described in Section IV 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 determined that the public health and safety require that these commitments be confirmed by this Order. MIDA has agreed to this action. Pursuant to 10 CFR 2.202, I have also determined, based on the Licensee's consent and on the significance of these matters, described above, that the public health and safety require that this Order be immediately effective.

IV

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 30, IT IS HEREBY ORDERED, EFFECTIVE IMMEDIATELY, THAT MIDA:

1. assures that it will maintain control of the NRC-licensed gauges possessed at Mid Mound Center, Route 136, East Monongahela, Pennsylvania and that the facility and gauges will remain locked at all times;
2. requests additional patrols from the local police in the area, until such time as the gauges are transferred to an authorized recipient;
3. performs daily walk-throughs of the facility to ensure that the gauges have not been tampered with;
4. shall either obtain a license from the NRC to possess the material or transfer the material to a specific NRC or Agreement State licensee authorized to possess such material; in the absence of obtaining a license from the NRC to possess the gauges within 90 days from the date of this Order, transfers the gauges either back to the manufacturer, or to another authorized recipient
5. by August 19, 1996 inform the NRC under oath or affirmation regarding the specific actions MIDA will take to comply with conditions 1, 2, and 3 above.

The Regional Administrator, Region I, may relax or rescind, in writing, any of the above conditions upon a showing by MIDA of good cause.

V

MIDA has agreed to waive its right to a hearing. Any person adversely affected by this Confirmatory Order, other than MIDA, may request a hearing within 20 days of its issuance. Any request for a hearing shall be submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN: Chief, Docketing and Service Section, Washington, D.C. 20555. Copies also shall be sent to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, to the Assistant General Counsel for Hearings and Enforcement at the same address, to the Regional Administrator, NRC Region I, 475 Allendale Road, King of Prussia, Pennsylvania, and to the Licensee. If such a person 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 2.714(d).

If a 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.

Pursuant to 10 CFR 2.202(c)(2)(i), any person other than the Licensee, adversely affected by this Order, may, in addition to demanding a hearing, at the time the answer is filed or sooner, move the presiding officer to set aside the immediate effectiveness of the Order on the ground that the Order, including the need for immediate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded allegations, or error.

In the absence of any request for hearing, the provisions specified in Section IV above shall be final 20 days from the date of this Order without further order or proceedings. AN ANSWER OR A REQUEST FOR HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF THIS ORDER.

                                             FOR THE NUCLEAR REGULATORY COMMISSION



                                             James Lieberman, Director
                                             Office of Enforcement

Dated at Rockville, Maryland
this 12th day of August 1996