United States Nuclear Regulatory Commission - Protecting People and the Environment

Information Notice No. 94-86, Supplement 1: Legal Actions Against Thermal Science, Inc., Manufacturer of Thermo-Lag

                                 UNITED STATES
                        NUCLEAR REGULATORY COMMISSION 
                     OFFICE OF NUCLEAR REACTOR REGULATION
                          WASHINGTON, D.C. 20555-0001

                               November 15, 1995


NRC INFORMATION NOTICE 94-86, SUPPLEMENT 1:  LEGAL ACTIONS AGAINST THERMAL
                                             SCIENCE, INC., MANUFACTURER OF
                                             THERMO-LAG


Addressees

All holders of operating licenses or construction permits for nuclear power
reactors.

Purpose

The U.S. Nuclear Regulatory Commission (NRC) is issuing this information
notice to inform addressees that on August 1, 1995, a Federal jury found
Thermal Science, Inc. (TSI), and its president, Rubin Feldman, not guilty of
making false statements about the role of Industrial Testing Laboratories
(ITL) in the qualification testing of Thermo-Lag fire barriers.  It is
expected that recipients will review the information for applicability to
their facilities and consider actions, as appropriate.  Suggestions contained
in this information notice are not NRC requirements; therefore, no specific
action or written response is required.  

Background

Many NRC licensees use the Thermo-Lag fire barrier material to meet Section
III.G.2 of Appendix R to Part 50 of Title 10 of the Code of Federal
Regulations (10 CFR Part 50).  The NRC has issued several generic
communications regarding the failure of Thermo-Lag material to meet the
requirements of 10 CFR Part 50.  Attachment 1 of this information notice lists
the generic communications the NRC has issued regarding this material. 

In January 1982, TSI and Mr. Feldman hired ITL and its president, 
Allan M. Siegel, to perform tests related to the Thermo-Lag fire barrier
material.  On March 30, 1994, ITL and Mr. Siegel pled guilty to five counts of
making and aiding and abetting the making of false statements within the
jurisdiction of the NRC, in violation of Title 18, United States Code,
Sections 1001 and 1002, concerning Thermo-Lag.  In Information Notice 94-86 of
December 22, 1994, the NRC informed licensees of a grand jury indictment of 








9511090197.                                                            IN 94-86, Supp. 1
                                                            November 15, 1995
                                                            Page 2 of 3


TSI and Mr. Feldman for allegedly making false statements to the NRC and
others concerning the material facts of the Thermo-Lag fire barrier.  The
original seven-count indictment alleged that TSI and Mr. Feldman had conspired
with ITL and others to conceal material facts and make false statements within
the jurisdiction of the NRC.

Description of Circumstances

A superseding four-count indictment dated May 4, 1995, alleged that for a
period of over 10 years TSI and Mr. Feldman did unlawfully, willfully, and
knowingly conspire with ITL and Mr. Siegel and others in matters within the
jurisdiction of the NRC to falsify, conceal, and cover up by trick, and to
make and cause to be made fraudulent statements and representations as to
material facts, and to make and use false documents knowing the documents 
contained false, fictitious, and fraudulent statements and entries in
violation of Title 18, United States Code, Sections 1001 and 1002.  Moreover,
the superseding indictment alleged that TSI and Mr. Feldman had attempted to
defraud the United States by impeding, obstructing, and defeating the lawful
governmental functions of the NRC in its administration of the Atomic Energy
Act and related regulations.  After a 2-month trial at the United States
District Court for the District of Maryland, on August 1, 1995, a jury found
TSI and Mr. Feldman not guilty on all counts of the superseding indictment.

Discussion

All entities and individuals involved in NRC-regulated activities, including
NRC licensees, suppliers for NRC licensees, and employees of NRC licensees,
are responsible for complying with applicable NRC regulations.  Every holder
of a license to operate a nuclear reactor is also required to ensure that the
products, components, and systems used and installed in the facility conform
to pertinent NRC regulations and meet licensing commitments.  

The subject trial did not resolve the technical and safety issues associated
with the use of Thermo-Lag fire barriers to meet NRC regulations.  Licensees
are continuing to resolve these issues in accordance with Generic Letter
92-08, "Thermo-Lag 330-1 Fire Barriers," December 17, 1992, and all followup
staff actions associated with the generic letter.  The NRC staff will continue
to monitor, review, and inspect these activities to ensure that licensee
corrective actions, such as upgrading or replacing existing Thermo-Lag fire
barriers, conform to applicable NRC regulations and meet licensing
commitments..                                                            IN 94-86, Supp. 1
                                                            November 15, 1995
                                                            Page 3 of 3


This information notice requires no specific action or written response.  If
you have any questions about the information in this notice, please contact
the technical contact listed below or the appropriate Office of Nuclear
Reactor Regulation (NRR) project manager.

                                    /s/'d by DMCrutchfield


                                    Dennis M. Crutchfield, Director
                                    Division of Reactor Program Management
                                    Office of Nuclear Reactor Regulation

Technical contact:  K. Steven West, NRR
                    (301) 415-1220

Attachments:
1.  NRC Generic Communications
      Concerning Thermo-Lag Fire Barriers
2.  List of Recently Issued NRC Information Notices
.                                                            Attachment 1
                                                            IN 94-86, Supp. 1
                                                            November 15, 1995
                                                            Page 1 of 2


        NRC GENERIC COMMUNICATIONS CONCERNING THERMO-LAG FIRE BARRIERS


Bulletin 92-01                Failure of Thermo-Lag 330 Fire Barrier System To
                              Maintain Cabling in Wide Cable Trays and Small  
                              Conduits Free From Fire Damage, June 24, 1994

Bulletin 92-01, Supplement 1  Failure of Thermo-Lag 330 Fire Barrier System To
                              Perform Its Specified Fire Endurance Function,
                              August 28, 1992

Generic Letter 92-08          Thermo-Lag 330-1 Fire Barriers, December 17,
                              1992

Generic Letter 86-10,         Fire Endurance Test Acceptance Criteria for Fire
Supplement 1                  Barrier Systems Used To Separate Redundant Safe
                              Shutdown Trains Within the Same Fire Area,
                              March 25, 1994

Information Notice 91-47      Failure of Thermo-Lag Barrier Material To Pass  
                              Fire Endurance Test, August 6, 1991

Information Notice 91-79      Deficiencies in the Procedures for Installing   
                              Thermo-Lag Fire Barriers Materials,
                              December 6, 1991

Information Notice 91-79      Deficiencies Found in Thermo-Lag Fire Barrier    
Supplement 1                  Installation, August 4, 1994

Information Notice 92-46      Thermo-Lag Fire Barrier Material Special Review
                              Team Final Report Findings, Current Fire
                              Endurance Test, and Ampacity Calculation Errors, 
                              June 23, 1992

Information Notice 92-55      Current Fire Endurance Test Results for
                              Thermo-Lag Fire Barrier Material, July 27, 1992

Information Notice 92-82      Results of Thermo-Lag 330-1 Combustibility
                              Testing, December 15, 1992

Information Notice 94-22      Fire Endurance and Ampacity Derating Test
                              Results for 3-Hour Fire Rated Thermo-Lag 330-1
                              Fire Barriers, March 16, 1994

Information Notice 94-34      Thermo-Lag 330-660 Flexi-Blanket Ampacity
                              Derating Concerns, May 13, 1994

Information Notice 94-86      Legal Actions Against Thermal Science, Inc.,
                              Manufacturer of Thermo-Lag, December 22, 1994
.                                                            Attachment 1
                                                            IN 94-86, Supp. 1
                                                            November 15, 1995
                                                            Page 2 of 2


Information Notice 95-27      NRC Review of Nuclear Energy Institute, "Thermo-
                              Lag 330-1 Combustibility Evaluation Methodology
                              Plant Screening Guide;" May 31, 1995

Information Notice 95-32      Thermo-Lag 330-1 Flame Spread Test Results

Information Notice 95-49      Seismic Adequacy of Thermo-Lag Panels

Page Last Reviewed/Updated Friday, November 15, 2013