Enclosure 1

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of )

)

CERTAIN LICENSEES AUTHORIZED TO ) EA-05-007

POSSESS AND TRANSFER ITEMS )

CONTAINING RADIOACTIVE MATERIAL )

QUANTITIES OF CONCERN )

)

ORDER IMPOSING ADDITIONAL SECURITY MEASURES

(EFFECTIVE IMMEDIATELY)

I.

The Licensees identified in Attachment A to this Order hold licenses issued by the U.S.

Nuclear Regulatory Commission (NRC or Commission) or an Agreement State, in accordance

with the Atomic Energy Act of 1954, as amended, and 10 C.F.R. Parts 50, 70 and 71, or

equivalent Agreement State regulations. The licenses authorize them to possess and transfer

items containing radioactive material quantities of concern. This Order is being issued to all

such Licensees who may transport radioactive material quantities of concern under the NRC’s

authority to protect the common defense and security, which has not been relinquished to the

Agreement States. The Orders require compliance with specific additional security measures to

enhance the security for transport of certain radioactive material quantities of concern. 
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II.

On September 11, 2001, terrorists simultaneously attacked targets in New York, N.Y.,

and Washington, D.C., utilizing large commercial aircraft as weapons. In response to the

attacks and intelligence information subsequently obtained, the Commission issued a number

of Safeguards and Threat Advisories to Licensees in order to strengthen Licensees’ capabilities

and readiness to respond to a potential attack on this regulated activity. The Commission has

also communicated with other Federal, State and local government agencies and industry

representatives to discuss and evaluate the current threat environment in order to assess the

adequacy of the current security measures. In addition, the Commission commenced a

comprehensive review of its safeguards and security programs and requirements.

As a result of its initial consideration of current safeguards and security requirements, as

well as a review of information provided by the intelligence community, the Commission has

determined that certain security measures are required to be implemented by Licensees as

prudent, interim measures to address the current threat environment in a consistent manner. 

Therefore, the Commission is imposing requirements, as set forth in Attachment B1

 of this

Order, on all Licensees identified in Attachment A of this Order. These additional security

measures, which supplement existing regulatory requirements, will provide the Commission

with reasonable assurance that the common defense and security continue to be adequately

protected in the current threat environment. These additional security measures will remain in

effect until the Commission determines otherwise. 

The Commission recognizes that Licensees may have already initiated many of the

measures set forth in Attachment B to this Order in response to previously issued Safeguards

and Threat Advisories or on their own. It is also recognized that some measures may not be

1 Attachment B contains Safeguards Information and will not be released to the public.
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possible or necessary for all shipments of radioactive material quantities of concern, or may

need to be tailored to accommodate the Licensees’ specific circumstances to achieve the

intended objectives and avoid any unforeseen effect on the safe transport of radioactive

material quantities of concern.

Although the security measures implemented by Licensees in response to the

Safeguards and Threat Advisories have been adequate to provide reasonable assurance of

adequate protection of common defense and security, in light of the continuing threat

environment, the Commission concludes that the security measures must be embodied in an

Order, consistent with the established regulatory framework. The Commission has determined

that the security measures contained in Attachment B of this Order contains Safeguards

Information and will not be released to the public as per Order entitled, “Issuance of Order

Imposing Requirements for Protecting Certain Safeguards Information,” issued on November 5,

2004.” To provide assurance that Licensees are implementing prudent measures to achieve a

consistent level of protection to address the current threat environment, all licensees identified

in Attachment A to this Order shall implement the requirements identified in Attachment B to

this Order. In addition, pursuant to 10 C.F.R. § 2.202, I find that in light of the common defense

and security matters identified above, which warrant the issuance of this Order, the public

health and safety require that this Order be immediately effective.

III.

Accordingly, pursuant to Sections 53, 63, 81, 103, 104, 161b, 161i, 161o, 182 and 186

of the Atomic Energy Act of 1954, as amended, and the Commission's regulations in

10 C.F.R. § 2.202 and 10 C.F.R. Parts 50, 70 and 71, IT IS HEREBY ORDERED, EFFECTIVE
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IMMEDIATELY, THAT ALL LICENSEES IDENTIFIED IN ATTACHMENT A TO THIS ORDER

SHALL COMPLY WITH THE FOLLOWING:

A. All Licensees shall, notwithstanding the provisions of any Commission or Agreement

State regulation or license to the contrary, comply with the requirements described in

Attachment B to this Order. The Licensees shall immediately start implementation of

the requirements in Attachment B to the Order and shall complete implementation by

January 17, 2006, or before the licensee's next shipment after the 180 day

implementation period of this Order. This Order supercedes the additional

transportation security measures prescribed in the Manufacturer’s and Distributor’s

Order issued January 12, 2004.

B. 1. All Licensees shall, within twenty (20) days of the date of this Order, notify the

Commission, (1) if they are unable to comply with any of the requirements

described in Attachment B, (2) if compliance with any of the requirements is

unnecessary in their specific circumstances, or (3) if implementation of any of the

requirements would cause the Licensee to be in violation of the provisions of any

Commission or Agreement State regulation or its license. The notification shall

provide the Licensees’ justification for seeking relief from or variation of any

specific requirement. 

2. Any Licensee that considers that implementation of any of the requirements

described in Attachment B to this Order would adversely impact the safe

transport of radioactive material quantities of concern must notify the

Commission, within twenty (20) days of this Order, of the adverse safety impact,

the basis for its determination that the requirement has an adverse safety

impact, and either a proposal for achieving the same objectives specified in the

Attachment B requirement in question, or a schedule for modifying the activity to
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address the adverse safety condition. If neither approach is appropriate, the

Licensee must supplement its response to Condition B.1 of this Order to identify

the condition as a requirement with which it cannot comply, with attendant

justifications as required in Condition B.1. 

C. All Licensees shall report to the Commission when they have achieved full compliance

with the requirements described in Attachment B.

D. Notwithstanding any provisions of the Commission’s or an Agreement State’s

regulations to the contrary, all measures implemented or actions taken in response to

this order shall be maintained until the Commission determines otherwise.

Licensee responses to Conditions B.1, B.2, and C above shall be submitted to the

Document Control Desk, ATTN: Director, Office of Nuclear Reactor Regulation, U.S. Nuclear

Regulatory Commission, Washington, DC 20555. In addition, Licensee submittals that contain

sensitive security related information shall be properly marked and handled in accordance with

Licensees’ Safeguards Information or Safeguards Information - Modified Handling program.

The Director, Office of Nuclear Reactor Regulation may, in writing, relax or rescind any

of the above conditions upon demonstration by the Licensee of good cause. 

IV.

In accordance with 10 C.F.R. § 2.202, the Licensee must, and any other person

adversely affected by this Order may, submit an answer to this Order, and may request a

hearing on this Order, within twenty (20) 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 in which to submit an answer or request a hearing must be made in writing to

the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission,
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Washington, DC 20555, and include a statement of good cause for the extension. The answer

may consent to this Order. Unless the answer consents to this Order, the answer shall, in

writing and under oath or affirmation, specifically set forth the matters of fact and law on which

the Licensee or other person adversely affected relies and the reasons as to why the Order

should not have been issued. Any answer or request for a hearing shall be submitted to the

Secretary, Office of the Secretary of the Commission, U.S. Nuclear Regulatory Commission,

ATTN: Rulemakings and Adjudications Staff, Washington, DC 20555. Copies also shall be

sent to the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory

Commission, Washington, DC 20555, to the Assistant General Counsel for Materials Litigation

and Enforcement, to the Office of Enforcement at the same address, to the Regional

Administrator for NRC Region I, II, III, or IV, at the respective addresses specified in

Appendix A to 10 C.F.R. Part 73, appropriate for the specific facility, and to the Licensee if the

answer or hearing request is by a person other than the Licensee. Because of possible

disruptions in delivery of mail to United States Government offices, it is requested that answers

and 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 hearingdocket@nrc.gov and also to the

Office of the General Counsel either by means of facsimile to 301-415-3725 or by e-mail to

OGCMailCenter@nrc.gov. If a person other than the Licensee requests a hearing, that person

shall set forth with particularity the manner in which his interest is adversely affected by this

Order and shall address the criteria set forth in 10 C.F.R. § 2.714(d).

If a hearing is requested by the Licensee or a person whose interest is adversely

affected, the Commission will issue an Order designating the time and place of any hearing. If

a hearing is held, the issue to be considered at such hearing shall be whether this Order should

be sustained. 
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Pursuant to 10 C.F.R. § 2.202(c)(2)(i), the Licensee, may, in addition to demanding a

hearing, at the time the answer is filed or sooner, move the presiding officer to set aside the

immediate effectiveness of the Order on the ground that the Order, including the need for

immediate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded

allegations, or error.

In the absence of any request for hearing, or written approval of an extension of time in

which to request a hearing, the provisions specified in Section III above shall be final twenty

(20) days from the date of this Order without further order or proceedings. If an extension of

time for requesting a hearing has been approved, the provisions specified in Section III shall be

final when the extension expires if a hearing request has not been received. AN ANSWER OR

A REQUEST FOR HEARING SHALL NOT STAY THE IMMEDIATE EFFECTIVENESS OF

THIS ORDER.

Dated this 19th day of July 2005 FOR THE NUCLEAR REGULATORY COMMISSION

/RA/

J. E. Dyer, Director

Office of Nuclear Reactor Regulation