EA-96-129 - Nationwide Testing Services, Inc.

May 16, 1996

EA 96-129

Mr. Charles Marcantel, President
Nationwide Testing Services, Inc.
811 West Morse Avenue
Schaumburg, IL 60193

SUBJECT:

NOTICE OF VIOLATION NRC INSPECTION REPORT NO. 999-90003/96002(DNMS)

Dear Mr. Marcantel:

This refers to the special safety inspection conducted on March 20, 1996, in response to a March 5, 1996 letter from Nationwide Testing Services, Inc. (NST). NTS, an agreement state licensee (Illinois), informed the NRC that while NTS had filed Form NRC 241, "Report of Proposed Activities in Non-Agreement States," with the NRC for Calendar Year 1995, NTS had not given the NRC the specific dates and locations in a non-agreement state (Indiana) where NTS would be working during 1995. The inspection established that NTS worked in the State of Indiana on 60 days at 22 locations during 1995. The inspection report was mailed to NTS on April 16, 1996.

Based on the information developed during the inspection and the March 5, 1996 letter from NTS, the NRC determined that a significant violation of NRC requirements occurred. The violation is cited in the enclosed Notice of Violation and the circumstances surrounding it are described in the inspection report. Specifically, NTS failed to obtain an NRC license or provide to the NRC all of the information required for a complete filing of NRC Form 241 prior to conducting licensed activities, industrial radiography using iridium-192, in the State of Indiana during 1995.

The failure to provide full notification to the NRC prior to conducting licensed activities in a non-agreement state is a matter of significant regulatory concern. The failure to provide this information denies the NRC the opportunity to assure that activities are conducted in accordance with all NRC radiation safety requirements. Therefore, the violation is categorized in accordance with the "General Statement of Policy and Procedure for NRC Enforcement Activities," (Enforcement Policy) NUREG-1600, at Severity Level III.

In accordance with the Enforcement Policy, a base civil penalty in the amount of $5,000 is considered for a Severity Level III violation. Since NTS has not been the subject of a previous escalated enforcement action within the last two years, the NRC then considered whether credit was warranted for Corrective Action in accordance with the civil penalty assessment process in Section VI.B.2 of the Enforcement Policy. Credit was given for prompt corrective actions that included a system of double checks to ensure the NRC is notified whenever NTS will be working in a non-agreement state. The NRC also recognizes that NTS voluntarily informed the NRC of the violation.

Therefore, to encourage prompt and comprehensive corrective actions, I have decided not to propose a civil penalty in this case. However, significant violations in the future could result in a civil penalty.

The NRC has concluded that information regarding the reason for the violation, 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 Inspection Report No. 999-90003/96002(DNMS) and a letter dated March 5, 1996, from Nationwide Testing Service. 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 respond, you should follow the directions specified in the enclosed Notice.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy of this letter, its enclosure, and your response (should NTS choose to respond) will be placed in the NRC 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.

Sincerely,

Hubert J. Miller Regional Administrator

Docket No. 999-90003
License No. IL-01545-01

Enclosure: Notice of Violation

cc w/encl: Illinois Department of Nuclear Safety

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NOTICE OF VIOLATION

Nationwide Testing Services, Inc. Schaumburg, Illinois

Docket No. 999-90003 License No. IL-01545-01 EA 96-129

During an NRC inspection conducted on March 20, 1996, a violation of NRC requirements was identified. In accordance with the "General Statement of Policy and Procedure for NRC Enforcement Actions," NUREG-1600, the violation is listed below:

10 CFR 30.3 requires in relevant part, that no person shall possess or use byproduct material except as authorized by a specific or general license issued by the NRC.

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 subject to the provisions of 10 CFR 150.20(b).

10 CFR 150.20(b)(1) requires, in part, that any person engaging in activities in non-Agreement States shall, at least 3 days before engaging in each such activity, file 4 copies of NRC Form 241, "Report of Proposed Activities in Non-Agreement States," with the Regional Administrator of the appropriate NRC regional office.

Contrary to the above, Nationwide Testing Services, Inc., a licensee of the State of Illinois (an Agreement State), used licensed material, iridium-192, within the State of Indiana (a non-Agreement State) during Calendar Year 1995 and failed to file an appropriate NRC Form 241. Specifically, Nationwide Testing Services, Inc., worked at least 60 days and at 22 locations in the State of Indiana (including but not limited to Royal Center, Peru, Gary, Plymouth, and South Bend) and the NRC Form 241 filed by Nationwide Testing Services, Inc. did not list any of the work locations or dates of work. (01013)

This is a Severity Level III violation (Supplement VI).

The NRC has concluded that information regarding the reason for the violation, 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 Inspection Report No. 999-90003/96002(DNMS) and a letter dated March 5, 1996, from Nationwide Testing Service. 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, D.C. 20555 with a copy to the Regional Administrator, NRC Region III, 801 Warrenville Road, Lisle, Illinois 60532-4351, within 30 days of the date of the letter transmitting this Notice of Violation.

Dated at Lisle, Illinois
this 16th day of May 1996