EA-01-194 - Stork MSC

August 3, 2001

EA-01-194

Richard Hallman
Chief Operating Officer
Stork MSC
4102 Bishop Lane
Louisville, KY 40218-4504

SUBJECT:

NRC INSPECTION REPORT 15000016/2001-001(DNMS)) (STORK MSC) and NOTICE OF VIOLATION

Dear Mr. Hallman:

This refers to the routine reciprocity inspection conducted on July 5, 2001 regarding Stork MSC activities at a temporary job site at Globe Mechanical, New Albany, Indiana. The inspection was conducted in accordance with NRC guidelines as the licensee was operating under 10 CFR 150.20, Recognition of Agreement State Licensees (Reciprocity), in this calendar year. As a result of this inspection, four apparent violations of NRC requirements were identified. One apparent violation, failure to secure from unauthorized access or maintain constant surveillance over licensed material not in storage, is being considered for escalated enforcement. The results of this inspection were discussed with Jim Schaffer, Radiation Safety Officer, on July 6 and 16, 2001. The enclosed report presents the results of this inspection.

In a telephone conversation on July 27, 2001, Cynthia D. Pederson of my staff informed you, as Chief Operating Officer, that the NRC was considering escalated enforcement for the apparent violation involving the failure to secure radioactive material. Ms. Pederson also informed you that we had sufficient information regarding the apparent violations and your corrective actions to make an enforcement decision without the need for a predecisional enforcement conference or a written response from you. You indicated that Stork MSC did not believe that a predecisional enforcement conference or written response was needed.

Based on the information developed during the inspection and the information that you provided during the July 27, 2001 telephone conversation, the NRC has determined that four violations of NRC requirements occurred. These violations are cited in the enclosed Notice of Violation (Notice) and the circumstances surrounding them are described in detail in the subject inspection report.

Violation A of the Notice involves the failure to secure from unauthorized use or maintain constant surveillance over licensed material not in storage. Specifically, during radiographic activities conducted on July 5, 2001, the NRC identified that the radiographic camera was left unsecured and unattended while the radiographer and assistant radiographer were developing film. The radiographer apparently held the mistaken belief that the radiographic exposure device could be left unattended when the drive cable and source tube were attached, and the device was within a radiologically posted area. The device was locked at the time of the violation, with the key in the control of the radiographer.

The failure to adequately secure and limit access to licensed material is a significant safety issue. Implementation of adequate security measures for licensed materials is intended to prevent members of the public from being unknowingly and unnecessarily exposed to radiation. Therefore, this violation has been categorized in accordance with the enclosed "General Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement Policy), NUREG-1600, February 16, 2001, at Severity Level III.

In accordance with the Enforcement Policy, a base civil penalty in the amount of $6000 is considered for a Severity Level III violation. Because your facility has not been the subject of escalated enforcement actions 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.C.2 of the Enforcement Policy. We have evaluated your corrective actions which included: (1) retraining staff on the requirements for properly securing licensed material; and (2) including the security of licensed material as a priority item for the quarterly audits of radiographers. We have concluded that credit for these actions is warranted.

Therefore, to encourage prompt and comprehensive correction of violations, and in recognition of the absence of previous escalated enforcement action, I have been authorized, after consultation with the Director, Office of Enforcement, not to propose a civil penalty in this case. However, significant violations in the future could result in a civil penalty.

The NRC also identified violations in B through D of the Notice involving: (1) the failure to post a high radiation area during radiographic operations; (2) the failure to follow Department of Transportation requirements regarding shipping papers and package labeling; and (3) the failure to ensure that each radiographic exposure device has attached a visible label bearing the licensee's name, address, and telephone number. These violations are categorized in accordance with the Enforcement Policy at Severity Level IV.

The NRC has concluded that information regarding the reason for the violations, the corrective actions taken and planned to correct the violation and prevent recurrence, and the date when full compliance was achieved, is adequately addressed on the docket in this letter and the enclosed report. Therefore, you are not required to respond to this letter unless the description therein does not accurately reflect your corrective actions or your position. In that case, or if you choose to provide additional information, you should follow the instructions specified in the enclosed Notice.

The NRC has noted that on several occasions Stork MSC has submitted requests pursuant to 10 CRF 150.20 (via submitting an NRC Form 241) less than three days prior to performing work in areas under NRC jurisdiction. Region II informed you of this situation in a letter dated May 4, 2001. 10 CFR 150.20 requires you, as an Agreement State licensee in NRC's Region II, to submit a request to Region II at least three days prior to each licensed activity within NRC jurisdiction unless otherwise specified in 10 CFR 150.20(b)(1). Failure to gain NRC approval prior to work in NRC jurisdiction can result in enforcement action which includes, but is not limited to, the imposition of civil penalties and/or the modification, suspension or revocation of your general license under 10 CFR 150.20. Please contact Mr. Bruce L. Jorgensen of the Region III staff at 630-829-9615 if you have questions regarding implementation of 10 CFR 150.20 requirements.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosures, and your response, if any, will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at the Public NRC Library.

		Sincerely,
		/RA/
		J.E. Dyer Regional Administrator

Docket No. 15000016
License No. 201-595-05 (Agreement State Licensee - State of Kentucky)

Enclosure:  Notice of Violation

cc w/encl: J. Volpe, State of Kentucky

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NOTICE OF VIOLATION

Stork MSC Louisville, Kentucky

Docket No. 150-00016 License No. 201-593-05 State of Kentucky EA-01-194

During an NRC inspection conducted on July 5, 2001, violations of NRC requirements were identified. In accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," NUREG-1600, February 16, 2001, the violations are listed below:

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, provided that the provisions of 10 CFR 150.20(b) have been met.

10 CFR 150.20(b) states, in part, that any specific license issued by an Agreement State to a person engaging in activities in a non-Agreement State under a general license is subject to all applicable rules, regulations and orders of the Commission including the provisions of 10 CFR Part 20, Part 71, and subparts C through H of 10 CFR Part 34.

A.	10 CFR 20.1801 requires that the licensee secure from unauthorized removal or access licensed materials that are stored in controlled or unrestricted areas. 10 CFR 20.1802 requires that the licensee control and maintain constant surveillance of licensed material that is in a controlled or unrestricted area and that is not in storage. As defined in 10 CFR 20.1003, controlled area means an area, outside of a restricted area but inside the site boundary, access to which can be limited by the licensee for any reason; and unrestricted area means an area, access to which is neither limited nor controlled by the licensee. Contrary to the above, on several occasions on the morning of July 5, 2001, the licensee did not control or maintain constant surveillance of a radiography exposure device containing approximately 1.1 terabecquerels (29 curies) of iridium-192 located at 20 West 7th Street; New Albany, Indiana, in a building owned by Globe Mechanical, which is an unrestricted area. This is a Severity Level III violation (Supplement IV).
B.	10 CFR 34.53 requires that all areas in which industrial radiography is being performed be conspicuously posted as required by 20.1902 of this chapter. Exceptions listed in 20.1903 do not apply to industrial radiographic operations. 10 CFR 20.1902(b) requires that the licensee post each high radiation area with a conspicuous sign or signs bearing the radiation caution symbol and the words "CAUTION, HIGH RADIATION AREA" or "DANGER, HIGH RADIATION AREA." Contrary to the above, on July 5, 2001, during radiography performed at Globe Mechanical, 20 West 7th Street; New Albany, Indiana, the licensee did not post the high radiation area in which industrial radiography was being performed. This is a Severity Level IV violation (Supplement VI).
C.	10 CFR 71.5(a) requires that a licensee who transports licensed material outside of the site of usage, as specified in the NRC license, or where transport is on public highways, or who delivers licensed material to a carrier for transport, comply with the applicable requirements of the regulations appropriate to the mode of transport of the Department of Transportation (DOT) in 49 CFR Parts 170 through 189.
	a.	49 CFR 172.203(c)(2) requires that the letters "RQ" [Reportable Quantity] be entered on the shipping paper either before or after the basic description required for each hazardous substance. Pursuant to 49 CFR 172.101, radioactive material is classified as hazardous material.
	b.	49 CFR 172.403 requires, in part, with exceptions not applicable here, that each package of radioactive material be labeled, as appropriate, with two RADIOACTIVE WHITE-I, RADIOACTIVE YELLOW-II, or RADIOACTIVE YELLOW-III labels on opposite sides of the package. The contents, activity, and transport index must be entered in the blank spaces on the label using a legible and durable, weather resistant means. The contents entered on the label must include the name or abbreviation (e.g., 99Mo) of the radionuclides as taken from the listing in 49 CFR 173.435, or for mixtures of radionuclides, those nuclides determined in accordance with the provisions of 49 CFR 173.433(f), with consideration of space available on the label. The activity must be expressed in terms of the appropriate SI units (e.g., Becquerel, Terabecquerel etc...), or in terms of appropriate SI units followed by customary units (e.g., curies, millicuries, or microcuries).
	Contrary to the above:
	a.	On July 5, 2001, the licensee transported outside the confines of its plant approximately 1.1 terabecquerels (29 curies) of iridium-192, and the letters "RQ" were not entered either before or after the description on the shipping paper that accompanied the shipment.
	b.	On July 5, 2001, the licensee transported outside the confines of its plant approximately 1.1 terabecquerels (29 curies) of iridium-192 without the required RADIOACTIVE YELLOW-II labels.
	This is a Severity Level IV violation (Supplement V).
D.	10 CFR 34.20(b)(1)(v) requires, in part, that a licensee ensure that each radiographic exposure device has attached to it a durable, legible, clearly visible label bearing the licensee's name, address, and telephone number. Contrary to the above, on July 5, 2001, the licensee possessed a radiographic exposure device containing approximately 1.1 terabecquerels (29 curies) that did not have attached a durable, legible, clearly visible label bearing the licensee's name, address, and telephone number. This is a Severity Level IV violation (Supplement VI).

The NRC has concluded that information regarding the reason for the violations, 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 this letter and the attached inspection report. 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, DC 20555 with a copy to the Regional Administrator, Region III, 801 Warrenville Road, Lisle, IL 60532, within 30 days of the date of the letter transmitting this Notice of Violation (Notice).

If you contest this enforcement action, you should also provide a copy of your response, with the basis for your denial, to the Director, Office of Enforcement, United States Nuclear Regulatory Commission, Washington, DC 20555-0001.

If you choose to respond, your response will be made available electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system (ADAMS). ADAMS is accessible from the NRC Web site at the Public NRC Library. Therefore, to the extent possible, the response should not include any personal privacy, proprietary, or safeguards information so that it can be made available to the Public without redaction.

Dated this 3rd day of August 2001.