EA-03-100 - Mid American Inspection Services, Inc. - Order

November 18, 2003

EA-03-100

Mr. Terry L. Wilkins, President
Mid American Inspection Services, Inc.
1206 Effie Road
Gaylord, MI 49734

SUBJECT:

ORDER IMPOSING CIVIL MONETARY PENALTY – $3,000

Dear Mr. Wilkins:

This refers to your letter dated September 8, 2003, in response to the Notice of Violation and Proposed Imposition of Civil Penalty (Notice) sent to you by our letter dated August 12, 2003. Our letter and Notice described the two violations identified during an inspection conducted on April 10, 2003.

To emphasize the importance of control of licensed material and prompt identification of violations, a civil penalty (CP) of $6,000 was proposed.

In your response, you admitted the violations and described your corrective actions. You also requested complete mitigation or a reduction in the amount of the CP based upon the impacts your company has already incurred due to the violation. After carefully considering your corrective actions and the bases for your request for mitigation or reduction in the amount of the civil penalty, I am exercising discretion as provided in Section VII.B.6 of our Enforcement Policy and reducing the proposed CP of $6,000 to $3,000.

Accordingly, we hereby serve the enclosed Order on Mid American Inspection Services imposing a civil monetary penalty in the amount of $3,000. Within 30 days you should either: (1) pay the civil penalty in accordance with Section IV of the Order, or (2) request a hearing in accordance with Section V of the Order.

We will review the effectiveness of your corrective actions during a subsequent inspection.

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 you choose to provide one) will be made available electronically for public inspection in the NRC Public Document Room or from the NRC's document system (ADAMS), which is accessible from the NRC Web site at the Public NRC Library. To the extent possible, your response should not include any personal privacy, proprietary, or safeguards information so that it can be made available to the Public without redaction. The NRC also includes Issued Significant Enforcement Actions on its Web site.

		Sincerely,
		/RA/
		Frank Congel, Director Office of Enforcement

Docket No. 030-31160
License No. 21-26060-01

Enclosures:
1. Order Imposing Civil Monetary Penalty
2. NUREG/BR-0254 Payment Methods (Licensee only)

cc w/encl 1 only: State of Michigan

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UNITED STATES OF AMERICA
NUCLEAR REGULATORY COMMISSION

In the Matter of	)
	)
Mid American Inspection Services, Inc. Gaylord, Michigan	) ) )	Docket No. 030-31160 License No. 21-26060-01 EA-03-100

ORDER IMPOSING CIVIL MONETARY PENALTY

I

Mid American Inspection Services, Inc.(Licensee) is the holder of Materials License No.21-26060-01 issued (renewed) by the Nuclear Regulatory Commission (NRC or Commission) August 27, 2001. The license authorizes the Licensee to perform industrial radiography using NRC-licensed materials in accordance with the conditions specified therein.

II

The NRC conducted an inspection of the Licensee's activities on April 10, 2003. The results of this inspection indicated that the Licensee had not conducted its activities in full compliance with NRC requirements. A written Notice of Violation and Proposed Imposition of Civil Penalty (Notice) was served upon the Licensee by letter dated August 12, 2003. The Notice states the nature of the violation, the provision of the NRC's requirements that the Licensee had violated, and the amount of the civil penalty proposed for the violation.

The Licensee responded to the Notice in a letter dated, September 8, 2003. In its response, the Licensee admitted the violation and provided its corrective actions to prevent recurrence of similar violations in the future. The Licensee also requested reduction of the proposed civil penalty.

III

After consideration of the Licensee's response and the statements of fact, explanation, and argument for reduction contained therein, the NRC staff has exercised discretion and lowered the proposed civil penalty of $6,000 to $3,000. Therefore, a civil penalty in the amount of $3,000 should be imposed.

IV

In view of the foregoing and pursuant to Section 234 of the Atomic Energy Act of 1954, as amended (Act), 42 U.S.C. 2282, and 10 CFR 2.205, IT IS HEREBY ORDERED THAT:

The Licensee pay a civil penalty in the amount of $3,000 within 30 days of the date of this Order, in accordance with NUREG/BR-0254. In addition, at the time of making the payment, the licensee shall submit a statement indicating when and by what method payment was made, to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, One White Flint North, 11555 Rockville Pike, Rockville, MD 20852-2738.

V

The Licensee may request a hearing within 30 days of the date of this Order. Where good cause is shown, consideration will be given to extending the time to request a hearing. A request for extension of time must be made in writing to the Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, and include a statement of good cause for the extension. A request for a hearing should be clearly marked as a "Request for an Enforcement Hearing" and shall be submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN: Rulemakings and Adjudications Staff, 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 Materials Litigation and Enforcement at the same address, and to the Regional Administrator, NRC Region III, 801 Warrenville Road, Lisle, IL 60532-4351. Because of continuing disruptions in delivery of mail to United States Government offices, it is requested that requests for hearing be transmitted to the Secretary of the Commission either by means of facsimile transmission to 301-415-1101 or by e-mail to hearing.docket@nrc.gov and also to the Office of the General Counsel either by means of facsimile transmission to 301-415-3725 or by e-mail to OGCMailCenter.Resource@nrc.gov.

If a hearing is requested, the Commission will issue an Order designating the time and place of the hearing. If the Licensee fails to request a hearing within 30 days of the date of this Order (or if written approval of an extension of time in which to request a hearing has not been granted), the provisions of this Order shall be effective without further proceedings. If payment has not been made by that time, the matter may be referred to the Attorney General for collection.

In the event the Licensee requests a hearing as provided above, the issues to be considered at such hearing shall be:

whether, on the basis of the violations admitted by the license, this Order should be sustained.

		FOR THE NUCLEAR REGULATORY COMMISSION
		/RA/
		Frank Congel, Director Office of Enforcement

Dated this 14^th day of November 2003