United States Nuclear Regulatory Commission - Protecting People and the Environment

Information Notice No. 94-47: Accuracy of Information Provided to NRC During the Licensing Process

UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS
WASHINGTON, D.C.  20555

June 21, 1994


NRC INFORMATION NOTICE 94-47:  ACCURACY OF INFORMATION PROVIDED
                     TO NRC DURING THE LICENSING PROCESS


Addressees

All U.S. Nuclear Regulatory Commission Material Licensees.

Purpose

The Nuclear Regulatory Commission (NRC) is issuing this Information Notice to
notify addressees of the importance of submitting accurate information during
the licensing process.  It is expected that recipients will review the
information for applicability to their facilities and consider actions, as
appropriate, to avoid similar problems.  However, suggestions contained in
this Information Notice are not new NRC requirements; therefore, no specific
action nor written response is required.

Description of Circumstances

NRC statutory authority allows NRC to issue licenses for the use, possession,
transfer, receipt, and distribution of byproduct material.  When a license
application is approved, NRC issues a specific license that authorizes the use
of byproduct material in accordance with the program described in the
application.

There have been applications submitted to NRC that did not specify the status
of the construction of the facility, or stated that the facility was under
construction, when, in fact, it was not.  In two cases, the applicants had
stated in the application that the facilities were "...being finished at this
time."  In another case, after a license was issued to the applicant, NRC
subsequently discovered that the facility, as described in the application as
the place of possession and use of radioactive material, had not been
constructed, and that the facility's proposed address was actually the
applicant's private residence.

NRC is stressing the importance of submitting complete and accurate
information to NRC in the licensing process.  The nature and status of the
applicant's proposed facility are material matters in determining whether a
license to use byproduct material should be issued to an applicant.

Discussion

The general rules governing domestic licensing of byproduct material are
contained in 10 CFR Part 30.  Section 30.33, "General requirements for


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June 21, 1994
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issuance of specific licenses," requires, among other things, that the
proposed equipment and facilities be adequate to protect health and minimize
danger to life and property.  NRC staff anticipates, and as a matter of
practice encourages, license applicants to delay completion of facilities and
acquisition of equipment until after the review of the application is
completed.  This allows for cost-effective safety improvements in the
applicant's facilities and equipment when indicated as a result of NRC's
technical review.  It also ensures the adequacy of the facilities and
equipment before significant financial investment by the applicant.  However,
the actual status of the facility must be correctly represented, and the
applicant may not possess and use licensed material until the approved
facilities are completed and equipment procured.

Once a license is granted, construction of facilities, acquisition of
equipment, and possession and use of licensed material may depend on further
business, financial, and technical decisions.  However, the operational
facility must be as described in the license application.  If, during the
licensing process, a decision is made to change the facility location or
design, a revision to the license application must be submitted.  After the
license has been issued, changes to the facility location or design require
that an application for a license amendment be submitted and approved before
obtaining and using radioactive material at the facility.

As specified in 10 CFR 30.36(b), NRC requires licensees to notify the
Commission promptly, in writing, and request termination of the license when
the licensee decides to terminate all activities involving materials
authorized under the license.  NRC does not typically renew a license under
which authorized material has never been possessed or used.

A license is granted for the purposes specified in an application, based upon
the understanding that the applicant intends to use the license for those
purposes.  A license is not granted to serve purposes other than the use,
possession, transfer, receipt, and/or distribution of byproduct material
(e.g. solely as a credential).

Section 30.9 of 10 CFR Part 30 states that, "Information provided to the
Commission by an applicant for a license or by a licensee or information
required by statute or by the Commission's regulations, orders, or license
conditions to be maintained by the applicant or the licensee shall be complete
and accurate in all material respects."  Depending upon the circumstances,
violations of this rule may lead to civil or criminal sanctions.  The willful
provision of false statements in a license application to the NRC is an
extremely serious matter.  It is a criminal offense to make a willfully false
statement or representation to any department or agency of the United States
Government, under 18 U.S.C. 1001.  Item 13 of NRC Form 313, "Application for
Material License," notifies applicants of this provision of federal law.  Both
10 CFR 30.9 and 18 U.S.C. 1001 are applicable to license applicants and to
individuals who assist in, or provide information for, the preparation of
license applications.

License applicants who have a consultant prepare, or assist in the preparation
of, the license application, should carefully review the application to
ensure.                    IN 94-47                     June 21, 1994
                    Page 3 of 3


the accuracy of all its information.  This includes the information on the
proposed facility, the status of the construction of the facility, the address
of use, and the qualifications of the authorized users.  License applicants
are reminded that a license may be revoked for, among other things, any
material false statement in the application and for failure to construct or
operate a facility in accordance with the terms of the license, under
Section 186(a) of the Atomic Energy Act.

This Information Notice requires no specific action or written response.  If
you have any questions about the information in this notice, please call the
technical contact listed below, or the appropriate regional office.

ORIG /S/'D BY CARL J. PAPERIELLO

                        Carl J. Paperiello, Director
                        Division of Industrial and
                          Medical Nuclear Safety
                        Office of Nuclear Material Safety
                          and Safeguards

Technical contact:  Torre Taylor, NMSS
              (301) 504-1062

Attachments:
1.  List of Recently Issued NMSS Information Notices
2.  List of Recently Issued NRC Information Notices

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