March 1, 2006

MEMORANDUM TO: Chairman Diaz

Commissioner McGaffigan

Commissioner Merrifield

Commissioner Jaczko

Commissioner Lyons

FROM: Luis A. Reyes /RA/

Executive Director for Operations

SUBJECT: FEBRUARY 2006 UPDATE: INCREASED CONTROL OF

SOURCES

On August 15, 2005, the Commission directed the staff in a Staff Requirements Memorandum

(SRM) to implement the actions in COMSECY-05-0028, “Staff Response to SRM for

COMSECY-05-0015: Initiatives for Increasing Agreement State Participation in the Control of

Sources.” In order to keep the Commission fully and currently informed during the initial

implementation of the increased controls, the staff has provided updates to the Commission

through EDO Daily Notes, the Office of Nuclear Security and Incident Response Monthly

Significant Security Activities Update, a Technical Assistants briefing, and Commission

memoranda. The staff is also continuing to provide monthly updates on the status of ongoing

U.S. Nuclear Regulatory Commission (NRC) and Agreement State activities relative to the

increased controls. The staff’s last monthly update was dated January 23, 2006.

The staff notes that the State of Minnesota will likely become the 34th Agreement State on

March 31, 2006. The staff is working closely with Minnesota staff to ensure a smooth transition

of regulatory authority over all areas covered by the Section 274b Agreement. Minnesota plans

to issue NRC-approved increased controls to affected licensees on March 31, 2006. Once the

staff receives confirmation that the Minnesota licensees have been issued the increased

controls, the staff will relax the NRC issued Order EA-05-090, imposing increased controls on

these licensees.

Several activities are currently underway which involve implementation of the increased

controls, and the status of these activities will continue to be addressed in future updates. As

noted in the January update, the staff established a working group composed of NRC

managers and a representative of the Organization of Agreement States, Inc., (OAS) to ensure

regulatory consistency by reviewing and dispositioning implementation issues identified by the

NRC staff, the Agreement State Radiation Control Programs and licensees. During the initial 

CONTACTS: Andrew N. Mauer, STP

301-415-3962

Douglas A. Broaddus, NMSS

301-415-8124
The Commissioners - 2 -

meeting of the working group, the members decided that the Conference of Radiation Control

Program Directors, Inc., should also be represented on the group. Initially, the working group is

meeting on a weekly basis to review and disposition implementation issues. The working group

plans to make the disposition of all issues available to the NRC staff and the Agreement States,

and to make the disposition of non-sensitive issues available on the NRC public web site as

additional “question and answer” guidance for licensees.

Currently, four additional training courses on inspections for the increased controls are

scheduled for NRC and Agreement State inspectors in FY 2006. The first training course was 

conducted February 13-17, 2006, at the Sandia National Laboratory in Albuquerque, New

Mexico. The staff received requests from the Agreement States of Texas and California to host

training courses in their respective States, due to the large number of personnel in these States

that need the training. Staff has finalized arrangements with the State of Texas to conduct the

next course in April 2006, in Austin, Texas. The remaining two courses are scheduled for May

and June 2006, and staff is working with the State of California and Sandia National Laboratory

to finalize the logistics for these courses. Two additional courses are planned for FY 2007. 

The staff has worked with the OAS, Agreement States and NRC Regions to identify training

needs for conducting the increased controls inspections in FY 2006 and FY 2007, and 

determined that the currently scheduled courses are sufficient to meet inspection schedules. 

Attendance at the training courses is independent of the scheduling of inspections.

All licensees who have been issued the increased controls and possess radioactive materials

outlined in the Order (EA-05-090), must be in compliance with the increased controls within six

months from the date of issuance. Inspections could begin as soon as licensees report full

compliance, but in any case will begin no later than six months after the date of issuance of the

increased controls. The NRC staff and the Agreement States continue to track licensee

compliance with the increased controls and continue to follow up with the affected licensees to

ensure adequate responses to the increased control requirements are received from each of

the affected licensees. In many cases, licensees have requested that the authorized

possession limits on their licenses be reduced below the quantities of concern, or have

identified that they do not possess radioactive materials in quantities outlined in the Order. The

NRC and Agreement State staff are establishing inspection schedules for the higher risk

licensees that need to be inspected within the first year of implementation, based on the

prioritization methodology. These inspections will commence in some Agreement States as

early as March 2006, and by the NRC Regional Offices no later than May 2006.

Information provided by the Agreement States, and NRC staff indicates that, as of 

February 1, 2006, approximately 80 percent of NRC and Agreement State licensees issued

increased controls have responded to the requirements. The staff estimates that of the

approximately 2,900 NRC and Agreement State licensees issued the increased controls,

approximately 1,700 will be implementing the requirements, and thus need to be inspected. 

The Agreement States and NRC staff continue to follow up with licensees who have not yet

responded.

The next update will be provided in the quarterly report which will include the status of all

actions completed to date on this effort.

cc: SECY

OGC

OCA

OPA

CFO
The Commissioners - 2 -

meeting of the working group, the members decided that the Conference of Radiation Control

Program Directors, Inc., should also be represented on the group. Initially, the working group is

meeting on a weekly basis to review and disposition implementation issues. The working group

plans to make the disposition of all issues available to the NRC staff and the Agreement States,

and to make the disposition of non-sensitive issues available on the NRC public web site as

additional “question and answer” guidance for licensees.

Currently, four additional training courses on inspections for the increased controls are

scheduled for NRC and Agreement State inspectors in FY 2006. The first training course was

conducted February 13-17, 2006, at the Sandia National Laboratory in Albuquerque, New

Mexico. The staff received requests from the Agreement States of Texas and California to host

training courses in their respective States, due to the large number of personnel in these States

that need the training. Staff has finalized arrangements with the State of Texas to conduct the

next course in April 2006, in Austin, Texas. The remaining two courses are scheduled for May

and June 2006, and staff is working with the State of California and Sandia National Laboratory

to finalize the logistics for these courses. Two additional courses are planned for FY 2007. 

The staff has worked with the OAS, Agreement States and NRC Regions to identify training

needs for conducting the increased controls inspections in FY 2006 and FY 2007, and 

determined that the currently scheduled courses are sufficient to meet inspection schedules. 

Attendance at the training courses is independent of the scheduling of inspections.

All licensees who have been issued the increased controls and possess radioactive materials

outlined in the Order (EA-05-090), must be in compliance with the increased controls within six

months from the date of issuance. Inspections could begin as soon as licensees report full

compliance, but in any case will begin no later than six months after the date of issuance of the

increased controls. The NRC staff and the Agreement States continue to track licensee

compliance with the increased controls and continue to follow up with the affected licensees to

ensure adequate responses to the increased control requirements are received from each of

the affected licensees. In many cases, licensees have requested that the authorized

possession limits on their licenses be reduced below the quantities of concern, or have

identified that they do not possess radioactive materials in quantities outlined in the Order. The

NRC and Agreement State staff are establishing inspection schedules for the higher risk

licensees that need to be inspected within the first year of implementation, based on the

prioritization methodology. These inspections will commence in some Agreement States as

early as March 2006, and by the NRC Regional Offices no later than May 2006.

Information provided by the Agreement States, and NRC staff indicates that, as of 

February 1, 2006, approximately 80 percent of NRC and Agreement State licensees issued

increased controls have responded to the requirements. The staff estimates that of the

approximately 2,900 NRC and Agreement State licensees issued the increased controls,

approximately 1,700 will be implementing the requirements, and thus need to be inspected. 

The Agreement States and NRC staff continue to follow up with licensees who have not yet

responded.

The next update will be provided in the quarterly report which will include the status of all

actions completed to date on this effort.

cc: SECY OPA OCA

OGC CFO

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