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LICENSEE NEWSLETTER

NUREG/BR-0117, No. 08-01 Spring 2008

Oce of Federal & State Materials &

Environmental Management Programs

INSIDE THIS ISSUE

Completion of Naturally Occurring 

Radioactive Material (NARM) Licensing 

Guidance .......................................................1

Decommissioning Planning Proposed 

Rule..................................................................1

Medical Events Involving Samarium153 Dosages: Differences in Containers 

and Geometry Result in Inaccurate 

Activity Measurements............................2

NRC Terminates Cabot Reading Site 

License............................................................2

From the Desk of the FSME Director...3

NRC Completes the Commonwealth of 

Pennsylvania Agreement.........................4

NRC Proposes Expansion of National 

Source Tracking System ...........................5

National Research Council’s 

Committee On Radiation Source 

Use And Replacement 

Recommendations.....................................5

Generic Communications Issued..........6

Significant Enforcement Actions..........7

Select Federal Register Notices.............9

COMPLETION OF 

NATURALLY OCCURRING 

RADIOACTIVE MATERIAL 

(NARM) LICENSING 

GUIDANCE

The U. S. Nuclear Regulatory 

Commission (NRC) has published 

its final rule expanding the 

definition of byproduct material 

subject to its regulatory authority, 

implementing certain provisions 

of the Energy Policy Act (EPAct) 

of 2005. The final regulation 

establishing requirements for 

licensing and regulating Section 

11e.(3) and 11e.(4) byproduct 

material, as required by Section 

651(e) of the EPAct, was published 

on October 1, 2007 (Volume 

72, pages 55863-55937, of the 

Federal Register (72 FR 55863)). 

Within this final regulation, the 

definition of “byproduct material” 

was expanded to include 

certain naturally occurring and 

accelerator-produced radioactive 

material, commonly referred to 

as NARM. These final regulations 

became effective on November 

30, 2007. The final regulations 

can be accessed on the NRC’s 

Public Involvement Rulemaking 

Web site, which is located at 

http://www.nrc.gov/about-nrc/

regulatory/rulemaking/publicinvolvement.html. 

As part of this rulemaking effort, 

the NRC also evaluated the 

need to revise certain licensing 

guidance to provide necessary 

guidance to applicants in 

preparing license applications 

to include the use of NARM. Two 

NUREG-1556 documents were 

revised to provide additional 

guidance to licensees: (1) NUREG1556, Volume 13, Revision 1, 

“Consolidated Guidance About 

Materials Licenses: ProgramSpecific Guidance About 

Commercial Radiopharmacy 

Licenses,” and (2) NUREG1556, Volume 9, Revision 2, 

“Consolidated Guidance About 

Materials Licenses: ProgramSpecific Guidance About Medical 

Use Licenses.” Additionally, a 

new NUREG-1556 volume was 

developed to address production 

of radioactive material using an 

accelerator. This NUREG-1556 

volume is entitled: Volume 

21, “Consolidated Guidance 

About Materials Licenses: 

Program-Specific Guidance 

About Possession Licenses 

for Production of Radioactive 

Material Using an Accelerator.“

Each of these NUREG volumes was 

noticed for public comment in 

the Spring/Summer of 2007 and 

finalized in October/November 

of 2007 and in January of 2008. 

The NUREGs are available in 

ADAMs, on the NRC website page 

at http://www.nrc.gov/readingrm/doc-collections/nuregs/staff/

sr1556/, as well as on the NARM 

Toolbox at 

http://nrc-stp.ornl.gov/

narmtoolbox/narmguidance.html. 

(Contact: Torre Taylor; Office of 

Federal and State Materials and 

Environmental Management 

Programs; 301-415-7900; email: 

tmt@nrc.gov)

DECOMMISIONING 

PLANNING PROPOSED 

RULE

On December 10, 2007, 

the Commission approved 

publication of a proposed rule on 

Decommissioning Planning, and 

the proposed rule appeared in the 

Federal Register on January 22, 

2008 (73 FR 3812). The proposed 

rule would make amendments to 

NRC’s License Termination Rule 

(10 CFR Part 20) and amendments 

to the decommissioning financial 

assurance requirements under 10 

CFR Parts 30, 40, 50, 70, and 72.

The License Termination Rule 

established 10 CFR 20.1406 

specifying that license applications 
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must describe how the facility 

design and operating procedures 

will minimize contamination of 

the facility and the environment, 

facilitate decommissioning, 

and minimize the generation of 

radioactive waste. The proposed 

Part 20 changes clarify that these 

requirements apply to existing 

facilities as well. Under current 

regulations, contamination that 

enters the ground at a site may 

go undetected because there are 

generally no NRC requirements to 

monitor the ground water and soils 

onsite for contamination. Based on 

past NRC experience, significant 

concentrations or quantities of 

undetected and unmonitored 

contamination have been a major 

contributor to a site becoming 

a legacy site and a potential 

radiological hazard. Changes to 

10 CFR 20.1406 would require 

that licensees conduct their 

operations, to the extent practical, 

to minimize the introduction of 

residual radioactivity into the 

site, including the subsurface. 

Changes to 10 CFR 20.1501 survey 

and monitoring requirements 

would retain all previous survey 

requirements and would replace 

the term “radioactive material” 

with the defined term “residual 

radioactivity” which includes 

radioactivity in subsurface soils 

and groundwater. The amended 

20.1501(b) would require 

licensees to document survey 

records as records important 

for decommissioning, under 10 

CFR 30.35(g), 40.36(f), 50.75(g), 

70.25(g), and 72.30(d). The 

intent of 10 CFR Part 20 changes 

is to address onsite subsurface 

residual radioactivity that would 

later require remediation during 

decommissioning to meet the 

unrestricted use criteria of 

10 CFR 20.1402.

The changes to decommissioning 

financial assurance would require 

licensees to use the results of 

the Part 20 requirements in 

defining decommissioning 

work scope, report this to the 

NRC with cost estimates, and 

that decommissioning financial 

assurance will be available when 

needed, even if the licensee 

enters bankruptcy with its 

assets vulnerable to attachment 

by creditors. The amended 

regulations would eliminate the 

escrow account and the line-ofcredit, and would modify the 

Parent Company Guarantee and 

Self-Guarantee to ensure the 

payment of funds in cases of 

financial distress by the licensee 

or the guarantor. The amended 

regulations would require 

licensees with power reactors in a 

decommissioning status to report 

information annually on the costs 

of decommissioning and spent 

fuel management.

(Contact: Kevin O’Sullivan, Office 

of Federal and State Materials 

and Environmental Management 

Programs, 301-415-8112; email: 

kro2@nrc.gov)

MEDICAL EVENTS 

INVOLVING SAMARIUM-153 

DOSAGES: DIFFERENCES 

IN CONTAINERS AND 

GEOMETRY RESULT IN 

INACCURATE ACTIVITY 

MEASUREMENTS

An Agreement State recently 

notified the NRC of possible 

medical events involving up 

to eight patients treated with 

Samarium-153 (Sm-153) since 

late 2006 at a licensee’s medical 

center. Sm-153 has a combined 

beta and gamma decay spectrum 

and is used to treat pain caused by 

cancer that has spread to the bone. 

The medical event was caused by 

the licensee’s failure to take into 

account the important effects of 

containers and volume geometry 

on dose calibrator measurements, 

which resulted in administered 

activities of approximately 30% 

less than those prescribed in the 

written directives. The licensee 

measured the activity of each Sm153 dosage in a syringe instead of 

a vial; however, the dose calibrator 

was calibrated for Sm-153 using 

a vial. Measuring the activity of 

a beta- and low-energy gammaemitting dosage using a container 

that differs in material and/or 

geometry from the container 

for which the dose calibrator 

was calibrated can result in 

inaccurate activity measurements 

because of the geometrical and 

attenuation differences. More 

information about medical events 

caused by inaccurate activity 

measurements of Sm-153 can be 

found in Information Notice 2002-

19: Medical Misadministrations 

Caused by Failure to Properly 

Perform Tests on Dose Calibrators 

for Beta- and Low-Energy 

Photon-Emitting Radionuclides 

(ML021620486).

(Contact: Donna-Beth Howe, Office 

of Federal and State Material and 

Environmental Management 

Programs, 301-415-7848; e-mail: 

dbh@nrc.gov)

NRC TERMINATES CABOT 

READING SITE LICENSE

On March 24, 2008, FSME 

terminated the Cabot Reading 

site license SMC-1562. This action 

completes the decommissioning 

of the former source materials 

facility at the site near Reading, PA.

The land, approximately 2/3 

of an acre, is below NRC safety continued on page 4
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My job is interesting because of 

the wide range of challenges we, 

in the Office of Federal and State 

Materials and Environmental 

Management Programs (FSME), 

get to face. We have regulatory 

responsibility for the safe and 

secure uses of nuclear material. 

Our partners in 35 Agreement 

States share this responsibility. 

We work on 30 or more 

rulemaking actions yearly. 

We include stakeholders in 

our decision-making. We are 

actively engaged in review and 

development of international standards and have the lead representation on international committees. We make 

licensing decisions to ensure safe and environmentally-sound operations for the uranium mill industry. We perform 

environmental reviews as appropriate to ensure compliance with the National Environmental Policy Act. We consult 

with the Department of Energy (DOE) on waste determinations and monitor certain waste management activities 

at the Savannah River Site and Idaho National Laboratory. We manage the NRC’s low-level waste (LLW) program, 

which includes developing guidance and providing assistance to Agreement States on LLW issues. In addition, 

we oversee NRC’s decommissioning program activities. In this Newsletter, I would like to tell you more about our 

decommissioning program.

NRC’s decommissioning program has matured since its inception in the early 1990’s, from a program that focused on 

problematic sites, through the mid-to-late 1990’s, where the focus was the development of guidance and processes 

to ensure effective decommissioning, to the present, where the focus is on the effective management of current sites 

and implementation of ways to prevent problematic sites in the future.

Last year, NRC successfully completed decommissioning actions at 11 complex sites (2 power reactors, 3 research 

and test reactors, and 6 materials sites). In FY 2008, we have been working with licensees at 15 decommissioning 

power and early demonstration reactors, 11 test and research reactors, 29 complex materials sites, and 32 

decommissioning uranium recovery facilities.

In the past six months, staff completed decommissioning activities at the Connecticut Yankee reactor facility and at 

the Cabot site in Pennsylvania, and expects to complete activities at the Battelle, Homer Laughlin, UNC Naval and 

Fort McClellan materials facilities later this year. In fact, some of these may be completed by the time you read this 

article. Last year, NRC published a proposed rule to prevent future legacy site for public comment. The final rule is 

scheduled to be published in 2008.

Recently, Exelon proposed a new approach for the Zion site, consisting of the transfer of the Zion license to Energy 

Solutions for decommissioning. This will involve considerable external stakeholder involvement and the potential 

for a hearing. This new approach, if successful, could become the model for the decommissioning of other power 

reactors in the future.

As the program moves forward, FSME will strive to effectively manage current and future complex sites and focus 

on ways to prevent future legacy sites. We will receive comments, evaluate them, and use them as appropriate to 

finalize and implement the rule on legacy sites (10 CFR 20.1406).

In summary, decommissioning is a mature program focused on the prevention of legacy sites. Due to investments 

made in the decommissioning regulatory infrastructure in the past, we have made considerable progress, but more 

work lies ahead of us. If you would like to know more about this topic, please contact Larry Camper, our Director of 

the Division of Waste Management and Environmental Protection, or Keith McConnell, his Deputy in this area.

Charles L. Miller, Director

From the Desk 

of the FSME 

Director
4

continued from page 2

requirements that allow a 

maximum radiation dose of 25 

millirem per year from residual 

contamination. Release of this 

land for unrestricted use poses no 

threat to public health and safety. 

Cabot’s license had previously 

been modified by release of the 

main processing building and 

surrounding area of the Reading 

site in 1995, and removal of the 

Revere site in 2000.

Slag at the Reading site was 

generated from the processing 

of tin ore residue for production 

of tantalum in 1967 and 1968. 

The slag was disposed of on an 

existing slope of non-radiologically 

contaminated industrial waste 

at one end of the former site. 

Additional radiologically 

contaminated material was 

placed on the site in 1977 and 

1978, when the main process 

building was decontaminated, and 

contaminated soils containing tin 

ore residues from decontamination 

at the former Canton Yards 

site in Baltimore, MD. The total 

amount of contaminated material 

encompasses 180,000 cubic feet.

Cabot installed an NRC approved 

long term riprap cover made of 

diabase stone on the slag pile to 

prevent erosion from precipitation 

or floods. The riprap cover 

installation was completed in 

January 2008. Cabot’s dose analysis 

considered exposures from 

recreational visitors, and workers 

under existing conditions and in 

both major and minor excavation 

scenarios. NRC staffs independent 

bounding analysis, site inspections 

during construction of the rip 

rap cover, and site verification 

survey concluded the dose would 

meet NRC‘s 25 millirem per year 

requirement. 

(Contact: Theodore Smith, FSME/

DWMEP/DURLD/RDB, 301-415-6721; 

e-mail: tbs1@nrc.gov)

NRC COMPLETES THE 

COMMONWEALTH 

OF PENNSYLVANIA 

AGREEMENT

On February 12, 2008, the U.S. 

Nuclear Regulatory Commission 

(NRC) approved an Agreement 

with the Commonwealth of 

Pennsylvania under Section 274b. 

of the Atomic Energy Act of 1954, 

as amended (the Act). Under 

the Agreement, Pennsylvania 

assumes regulatory authority over 

byproduct materials as defined 

in Sections 11e.(1), 11e.(3), and 

11e.(4) of the Act; source materials; 

special nuclear materials in 

quantities not sufficient to form a 

critical mass; and land disposal of 

all waste for such materials. The 

Agreement became effective on 

March 31, 2008. 

Upon the effective date of 

the Agreement, the NRC also 

terminated the time-limited waivers 

of the requirements in the Energy 

Policy Act of 2005 granted by the 

NRC (70 FR 51581; August 31, 2005) 

to Pennsylvania for byproduct 

material, as defined in Sections 

11e.(3) and 11e.(4) of the Act.

By letter dated November 9, 

2006, Governor Edward Rendell 

requested that the NRC enter into 

a Section 274b. Agreement with 

Pennsylvania. Before approving 

the Agreement, the NRC reviewed 

Pennsylvania’s radiation control 

program to ensure it was adequate 

to protect public health and 

safety and was compatible with 

NRC’s program for regulating the 

radioactive materials covered in 

the Agreement. The proposed 

Agreement, along with a summary 

of the NRC’s assessment of the 

proposed Pennsylvania program, 

was published in the Federal 

Register for public comment 

as required by Section 274e. of 

the Act. After careful review by 

an interoffice review team, NRC 

determined that the Pennsylvania 

program for the regulation of 

Agreement materials is adequate 

to protect public health and safety 

and is compatible with NRC’s 

program. To ensure that the terms 

of the Agreement continue to 

Pennsylvania becomes the 35th Agreement State. 
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be met after the effective date 

of the Agreement, NRC staff will 

conduct periodic reviews of the 

Pennsylvania program. 

Approximately 650 licenses, most 

for medical, industrial, commercial, 

and research and development 

uses of radioactive material, have 

been transferred to Pennsylvania’s 

jurisdiction. The NRC is retaining 

jurisdiction over a number of 

activities identified in 10 CFR 

Part 150, including regulation of 

commercial nuclear power plants 

and federal agencies using certain 

nuclear material in Pennsylvania. 

In addition, NRC is retaining 

authority for byproduct material, 

as defined in Section 11e.(2) 

of the Act (uranium recovery), 

and the review, evaluation, 

and approval of sealed sources 

and devices containing certain 

nuclear materials manufactured 

in Pennsylvania and distributed 

throughout the country.

(Contact: Kim Lukes, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-6701; e-mail: 

kxk2@nrc.gov)

NRC PROPOSES EXPANSION 

OF NATIONAL SOURCE 

TRACKING SYSTEM

The Nuclear Regulatory 

Commission is proposing to 

expand its National Source 

Tracking System (NSTS) to include 

an additional 3,500 NRC and 

state licensees and nearly 17,000 

additional radioactive sources, to 

improve accountability and control 

of radioactive materials.

A proposed rule, to be published 

shortly in the Federal Register, 

would require the additional 

licensees to report information on 

the manufacture, transfer, receipt, 

disassembly and disposal of these 

radioactive sources to the NSTS. 

Manufacturers will be required to 

assign a unique serial number to 

each nationally tracked source.

“An expanded National Source 

Tracking System will enable the 

NRC and its federal and state 

partners to improve the security 

of radioactive materials while 

ensuring their continued beneficial 

use in industry, research and 

medicine,” NRC Chairman Dale E. 

Klein said.

As established in a final rule 

published Nov. 8, 2006, the NSTS 

covers radioactive sources in 

Categories 1 and 2 as determined 

by the International Atomic Energy 

Agency. These sources are typically 

used in radiothermal generators, 

irradiators, radiation therapy, 

industrial gamma radiography and 

high- and medium-dose-range 

brachytherapy cancer treatments. 

That rule covers approximately 

1,350 licensees nationwide who 

possess Category 1 and 2 sources. 

The system is to be implemented 

by Jan. 31, 2009.

The proposed rule would expand 

the NSTS to include Category 

3 sources as well as sources in 

the upper range of Category 4 

– or at about 1/10 of the activity 

threshold for Category 3. These 

sources include fixed industrial 

gauges (level gauges, conveyor 

gauges, thickness gauges, blast 

furnace gauges, dredger gauges, 

and pipe gauges); well-logging 

devices; medium- and low-doserange brachytherapy; and certain 

radiography devices.

The NRC considers Category 1 

and 2 sources to be the most 

significant from a security 

perspective. Expanding the NSTS 

will guard against the possibility 

that a small number of Category 

3 or 4 radioactive sources could 

be collected to form a Category 2 

amount of radioactive material.

The NRC believes the additional 

cost to the agency and licensees of 

an expanded NSTS are reasonable 

given the additional improvement 

in accountability and control of 

radioactive sources.

The NRC will accept public 

comments on the proposed rule 

for 75 days following publication. 

Comments may be mailed to the 

Secretary, U.S. Nuclear Regulatory 

Commission, Washington, D.C. 

20555-0001, ATTN: Rulemakings 

and Adjudications Staff; or emailed to SECY@nrc.gov. Each 

submission should be labeled RIN 

3150-AI29.

(Contact: Michael K. Williamson, 

Office of Federal and State Materials 

and Environmental Management 

Programs, 301-415-6234; e-mail: 

Michael.williamson@nrc.gov)

NATIONAL RESEARCH 

COUNCIL’S COMMITTEE 

ON RADIATION SOURCE 

USE and REPLACEMENT 

RECOMMENDATIONS

The Energy Policy Act of 2005 

directed the NRC to request the 

National Research Council of the 

National Academies of Science 

(NAS) to review the civilian 

uses of radiation sources. In 

addition, the Council was also 

asked to recommend potential 

replacements for those sources 

that pose the highest risk to public 

health and safety in the event of 

an accident or attack. The NAS 

released their report – Radiation 

Source Use and Replacement – 

in February, 2008.
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The National Academies study 

significantly advanced the 

NRC’s knowledge of alternative 

technologies to radiation sources 

and addressed the Congressional 

mandate in Section 651(d) of the 

Energy Policy Act of 2005 (EPAct). 

This report, in combination with 

two other studies mandated 

by EPAct, provides technical 

information and independent 

insights that are useful to the 

NRC and its Federal and State 

partners that are working to 

further enhance security of 

radiation sources and prevent 

misuse of those sources by 

terrorists. Specifically, the NAS 

report reviewed the current 

industrial, research, commercial 

and medical uses of radiation 

sources and identified approaches 

for replacing such sources with 

lower risk alternatives. It provides 

an overview of the technical and 

economic feasibility and risks to 

workers from such replacements, 

and recommends options for 

implementing the identified 

replacements.

The report recommends:

• Replacement of some 

radionuclide radiation sources 

with alternatives should be 

implemented with caution, 

ensuring that the essential 

functions that the radionuclide 

radiation sources perform are 

preserved. 

• For prioritizing efforts to reduce 

risks from malicious use of 

radiation sources, the U.S. 

Nuclear Regulatory Commission 

(NRC) should consider radiation 

sources potential to cause 

contamination of large areas 

resulting in economic and 

social disruption to determine 

what, if any, additional security 

measures are needed. Having 

taken essential first step in 

considering deterministic health 

effects from possible radiation 

exposure from an incident 

involving radiation sources, 

the NRC should now include 

economic and social disruption 

in its risk analyses of radiation 

sources. 

• In view of the overall liabilities 

of radioactive cesium chloride, 

the U.S. Government should 

implement options for 

eliminating Category 1 and 

Category 2 cesium chloride 

sources from use in the US 

and to the extent possible, 

elsewhere. 

• In addition to actions related to 

radioactive cesium chloride, the 

U.S. government should adopt 

policies that provide incentives 

to facilitate the introduction of 

replacements and reduce the 

attractiveness and availability of 

high risk radionuclide sources. 

• The Society of Petrophysicists 

and Well Log Analysts should 

task an industry working group, 

called a Special Interest Group 

(SIG), such as the Nuclear 

Logging SIG, to address 

the technical obstacles to 

implementing replacements 

for the americium-beryllium 

sources used in well logging 

and the challenges of data 

interpretation. 

The U. S. Environmental Protection 

Agency, the U.S. Department 

of Energy, and the Radiation 

Source Protection and Security 

Task Force have active programs 

on alternative technologies to 

radiation sources that will benefit 

from this report. Federal and State 

representatives plan to review 

this report and identify areas that 

require further analysis to support 

their alternative technology 

programs. For example, the Task 

Force plans to systematically 

advance the information contained 

in the NAS report for decision 

making and identification of long 

term solutions, with the goal of 

submitting a report to Congress 

in 2010. To meet this goal, the 

Task Force plan to supplement 

information in the NAS report 

regarding worker risks, economic 

costs, implementation methods 

and schedules, and viable research 

and development programs on 

alternative technologies.

As these actions demonstrate, 

the NRC is dedicated to ensuring 

the security of these radiation 

sources. The NRC welcomes 

recommendations from all 

collaborative efforts on alternative 

technologies to enhance security 

while meetings its Strategic Goals.

GENERIC 

COMMUNICATIONS ISSUED

(January 1, 2008 - March 31, 2008)

The following are summaries 

of U.S. Nuclear Regulatory 

Commission (NRC) generic 

communications issued by 

the Office of Federal and State 

Materials and Environmental 

Management Programs. If one of 

these documents appears relevant 

to your needs and you have not 

received it, please call one of the 

technical contacts listed below. 

The Internet address for the NRC 

library of generic communications 

is http://www.nrc.gov/reading-rm/

doc-collections/gen-comm/index.

html. Please note that this address 

is case-sensitive and must be 

entered exactly as shown. 
7

Bulletins (BLs)

None.

Generic Letters (Gls)

None.

Information Notices (INs)

None.

Regulatory Issue Summaries (RIS)

RIS 2008-02, “Actions to Increase 

the Security of High Activity 

Radioactive Sources,” was 

issued February 1, 2008. This RIS 

was issued to all All U.S. Nuclear 

Regulatory Commission Materials 

and Master Materials Licensees; 

and to Agreement State Radiation 

Control Program Directors and 

State Liaison Officers. 

(Technical contact: William Ward, 

FSME, (301) 415-7038; e-mail wrw1@

nrc.gov ; and John Jankovich, FSME, 

(301) 415-7904; e-mail jpj2@nrc.gov)

(General Contact: Angela R. 

McIntosh, FSME, (301) 415-5030; 

arm@nrc.gov)

SIGNIFICANT 

ENFORCEMENT ACTIONS

The U.S. Nuclear Regulatory 

Commission’s (NRC’s) enforcement 

program can be accessed via 

NRC’s homepage [http://www.

nrc.gov/] under “What We Do.” 

Documents related to cases can 

be accessed at [http://www.nrc.

gov/], “Electronic Reading Room,” 

“Documents in ADAMS.” ADAMS 

is the Agency-wide Document 

Access and Management System. 

Help in using ADAMS is available 

from the NRC Public Document 

Room, telephone: 301-415-4737 or 

1-800-397-4209. 

Alpha Omega Services, Inc. 

(EA-07-215)

On December 20, 2007, a Notice of 

Violation and Proposed Imposition 

of Civil Penalty in the amount of 

$19,200 were issued for a Severity 

Level II violation. In January 2003, 

the company deliberately provided 

materially inaccurate information 

to an NRC licensee and to a 

contractor for the licensee in 

violation of 10 CFR 71.8(b)(2). The 

company Operations Manager/

Assistant Radiation Safety Officer 

signed a maintenance checklist 

indicating that a package was 

in compliance with the NRC 

Certificate of Compliance and 

approved for use, when he knew it 

was not. Additionally, in violation 

of 10 CFR 71.8(b)(1), Alpha Omega 

Services deliberately caused 

the NRC licensee to violate NRC 

requirements for a license when 

the licensee exported licensed 

material in nonconforming 

packages.

Accurate NDE and Inspection, LLC. 

(EA-06-281; EA-07-289) 

On February 20, 2008, a 

Confirmatory Order (effective 

immediately) was issued to 

confirm commitments made as 

a result of an Alternative Dispute 

Resolution (ADR) settlement 

agreement. The licensee requested 

ADR following the NRC’s March 

20, 2007, Notice of Violation 

and Proposed civil penalty of 

$13,000 for a willful violation 

involving the failure to secure from 

unauthorized removal or access 

licensed material that was stored 

in an unrestricted area; failure to 

wear required personnel dosimetry 

during radiographic operations; 

and failure to provide complete 

and accurate information on 

documents provided to an 

NOTE TO READERS: In an attempt to keep the FSME Licensee Newsletter relevant, useful and informative, 

feedback on the content of the newsletter is welcome. Readers desiring to contribute articles, self-explanatory 

diagrams, suggestions for future articles, bulletins, web-site postings, and other items of interest to the FSME 

Licensee Newsletter readership, should contact Michael Williamson or Gwendolyn Davis, from the Office of Federal 

and State Materials and Environmental Management Programs, Rulemaking Branch A. Mr. Williamson may be 

contacted at (301) 415-6234 or Michael.williamson@nrc.gov. Ms. Davis may be contacted at (301) 415-8165 or 

Gwendolyn.davis@nrc.gov. In addition, to ensure proper delivery of the FSME Licensee Newsletter, please report 

any address changes to Mr. Williamson to prevent any interruption of service. 

Please send written correspondence and requests to: 

Michael K. Williamson, Editor 

FSME Licensee Newsletter

Office of Federal and State Materials and

Environmental Management Programs

U.S. Nuclear Regulatory Commission

Two White Flint North, Mail Stop: T-8-F42

Washington, D.C. 20555-0001
8

NRC inspector. As part of the 

agreement, Accurate NDE agreed 

to additional management 

review and oversight programs 

that will include implementation 

of amended procedures for 

offshore radiographic operations, 

implementation of a training 

program, and increased audits 

of the program. Accurate NDE 

will also submit an article in the 

company newsletter regarding 

this case and the consequences 

of wrongdoing. In exchange 

for Accurate NDE’s extensive 

corrective actions, the NRC 

agreed to reduce the civil penalty 

originally proposed to $500.

CTI and Associates, Inc.

(EA-07-300) 

On January 15, 2008, a Notice of 

Violation was issued for a Severity 

Level III violation involving the 

failure by the authorized gauge 

operator to control and maintain 

constant surveillance of a portable 

nuclear gauge. Specifically, the 

gauge, which contained NRClicensed radioactive material, 

was damaged when it was run 

over by a bulldozer after the 

authorized gauge operator had 

left it unattended while he was 

preparing for another test at a 

temporary job site.

Western X-Ray Corporation

(EA-07-277; EA-07-278) 

On February 15, 2008, a Notice 

of Violation was issued for two 

Severity Level III violations. The 

first violation involved a failure to 

certify an individual who acted as 

the radiographer of record while 

performing industrial radiography. 

The second violation involved 

a failure to wear an operating 

alarm ratemeter by an individual 

who acted as the radiographer’s 

assistant during radiographic 

operations. Specifically, on April 

23, 2007, the individual acting as 

the radiographer of record was not 

certified as a radiographer and the 

individual acting as the assistant 

radiographer of record was not 

wearing an operating ratemeter 

at all times during radiographic 

operations, while performing 

industrial radiography on an 

offshore platform in federal waters.

Mattingly Testing Services, Inc. 

(EA-07-303) 

On January 23, 2008, a Demand 

for Information (DFI) was issued 

to Mattingly Testing Services, Inc. 

(Mattingly Testing) in response to 

the information obtained during 

November 7, 2007, inspection 

and investigation of Mattingly 

Testing’s licensed activities. While 

the inspection and investigation 

activities continue, the DFI 

required Mattingly Testing to 

provide information in order for 

the NRC to evaluate and determine 

the appropriateness of Mattingly 

Testing’s licensed material program 

at temporary job sites. The DFI 

also required Mattingly Testing 

to provide information in order 

for the NRC to evaluate the depth 

and completeness of Mattingly 

Testing’s work environment and 

its determination that it maintains 

an environment where employees 

can raise safety concerns without 

fear of retaliation. Specifically, the 

DFI required Mattingly Testing 

to provide additional details 

relative to the establishment, 

implementation and maintenance 

of a program designed to 

provide and support such a work 

environment. Mattingly Testing is 

required to submit the information 

in writing within 20 days of the 

date of this DFI. After reviewing 

Mattingly Testing’s response to 

the DFI, the NRC will determine 

whether further action is necessary 

to ensure compliance with 

regulatory requirements.

Individual Actions

Luis Fernandez

(IA-07-026)

On January 22, 2008, a 

Confirmatory Order (Effective 

Immediately) was issued to 

Mr. Luis Fernandez, a former 

security Project Manager for the 

Wackenhut Corporation, as a result 

of a settlement agreement entered 

into following the conclusion of 

Alternative Dispute Resolution, 

requested by the individual. This 

Confirmatory Order relates to 

a series of actions taken by Mr. 

Fernandez that resulted in the 

deliberate documentation of 

damage to a contingency response 

weapon in a licensee Condition 

Report, which was incomplete and 

inaccurate. The Condition Report, 

which is required to be maintained 

by the licensee, was provided to 

the NRC staff during an ongoing 

inspection and investigation. As a 

result, the actions of Mr. Fernandez 

placed the licensee in violation of 

10 CFR 50.9. During the mediation 

session, Mr. Fernandez agreed, 

among other things, to: 1) he has 

no intention of working or seeking 

employment in any activities 

or at any facility subject to NRC 

regulations, and that he will not 

seek employment requiring his 

participation in NRC-regulated 

activities before June 30, 2008, 

2) should he seek employment 

with an entity involved in NRCregulated activities and requiring 

unescorted access authorization 

prior to June 30, 2010, he will 

provide the NRC with a letter 

discussing the steps he has taken 
9

to assure his understanding of 

the importance of completeness 

and accuracy of information 

at facilities subject to NRC 

regulation, 3) make himself 

available to participate in training 

to discuss lessons learned from 

this matter and the importance 

of completeness and accuracy 

of condition reports and other 

internal documents, 4) should he 

seek employment with any NRCregulated entity prior to June 30, 

2010, to provide to the NRC a letter 

discussing the steps he has taken 

to assure his understanding of NRC 

requirements in effect at the time, 

is sufficient to address all Agency 

concerns regarding his involvement 

in the matter discussed in the 

NRC’s letter of May 30, 2007. In 

consideration of the above, the 

NRC agreed to forego issuance of 

a Notice of Violation or take other 

enforcement action against Mr. 

Fernandez in this matter.

Jon Brumer 

(IA-07-027)

On January 22, 2008, an 

Immediately Effective Order 

prohibiting an individual, a 

contract security Lieutenant with 

the Wackenhut Corporation, from 

involvement in all NRC-licensed 

activities for a period of five years 

from the date the Order was 

issued. The Order was issued based 

on activities that occurred on or 

about August of 2005. Specifically, 

Mr. Brumer deliberately removed 

and broke a firing pin from a 

contingency response weapon, 

rendering the weapon nonfunctional. As a result, Mr. Brumer 

caused FPL to be in violation of 10 

CFR Part 73. Mr. Brumer’s actions 

in this regard were in violation 

of 10 CFR 50.5(a)(1), which states 

that an employee of a licensee 

or contractor, who knowingly 

provides to any licensee, applicant, 

contractor, or subcontractor, 

any components, equipment, 

materials, or other goods or 

services that relate to a licensee’s 

activities in this part, may not 

engage in deliberate misconduct 

that causes or would have caused, 

if not detected, a licensee or 

applicant to be in violation of 

any rule, regulation, or order. 

Additionally, on or about February 

19, 2006, Mr. Brumer provided 

a transcribed statement to an 

NRC Office of Investigations (OI) 

agent regarding his involvement 

in the breaking of a firing pin 

that was later determined to be 

incomplete and inaccurate. Mr. 

Brumer’s actions in this regard 

were in violation of 10 CFR 

50.5(a)(2), which states, in part, 

that an employee of a licensee or 

contractor may not deliberately 

submit to the NRC, a licensee, or a 

licensee’s contractor, information 

that the person submitting 

the information knows to be 

incomplete or inaccurate in some 

respect material to the NRC. 

Oscar Aguilar

(IA-07-029)

On January 22, 2008, an 

Immediately Effective Order 

prohibiting an individual, a 

contract security officer with the 

Wackenhut Corporation, from 

involvement in all NRC-licensed 

activities for a period of five years 

from the date the Order was 

issued. The Order was issued based 

on activities that occurred on or 

about April of 2004. Specifically, 

Mr. Aguilar deliberately removed 

firing pins from two contingency 

response weapons, rendering 

the weapons non-functional. As 

a result, Mr. Aguilar caused FPL to 

be in violation of NRC Order for 

Interim Compensatory Measures, 

dated February 25, 2002, Section 

B.4(f). Mr. Aguilar’s actions in this 

regard constituted a violation of 10 

CFR 50.5.

SELECTED FEDERAL 

REGISTER NOTICES

January 1, 2008 – March 31, 2008

“Part 72, List of Approved Spent 

Fuel Storage Casks: HI-STORM 

100 Revision 4” Confirmation of 

Effective Date” 73 FR 17, January 2, 

2008.

(Contact: Jayne M. Mc Causland, 

Office of Federal and State Materials 

and Environmental Management 

Programs, 301-415-6219; e-mail: 

jmm2@nrc.gov)

“Transportation of Radioactive 

Material in Quantities of Concern 

(Meeting) (RAMQC)” 73 FR 826, 

January 4, 2008.

(Contact: Susan Bagley, Office 

of Nuclear Security and Incident 

Response, 301-415-5378; e-mail: 

shb@nrc.gov)

“Training and Qualification of 

Security Personnel at Nuclear 

Power Reactor Facilities; Issuance 

of Draft Regulatory Guide“ 73 FR 

2435, January 15, 2008.

(Contact: Dennis Gordon, U.S. 

Nuclear Regulatory Commission, 

301-415-6671 or email: dxg@nrc.

gov)

“George Barnet; Denial of Petition 

for Rulemaking” 73 FR 3221, 

January 17, 2008. 

(Contact: Frank Cardile, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-6272; e-mail: 

fpc@nrc.gov)
10

“10 CFR Parts 20, 30, 40 50, 70, 72, 

Decommissioning Planning” 73 FR 

3811, January 22, 2008.

(Contact: Kevin O’Sullivan, Office 

of Federal and State Materials 

and Environmental Management 

Programs, 301-415-8112; e-mail: 

kro2@nrc.gov)

“10 CFR Chapter I, Minor 

Amendments, Re-organization” 73 

FR 5709, January 31, 2008.

(Contact: Angella Love-Blair, Office 

of Administration, 301-415-5661; 

e-mail: alb5@nrc.gov)

“State of Nevada; Denial of Petition 

for Rulemaking” 73 FR 5762, 

January 31, 2008. 

(Contact: Jerry Bonanno, Office of 

the General Counsel, 301-415-1328 

or Toll Free: 1 800-368-5642, e-mail: 

jxb5@nrc.gov)

“Guidance on the Treatment of 

Uncertainties Associated with RiskInformed Decision Making, Draft 

Report for Comment (NUREG1855)” 73 FR 6746, February 2, 

2008.

(Contact: Mary Drouin, Office of 

Nuclear Regulatory Research, 301-

415-6675; email: mxd@nrc.gov)

“North Carolina Utilities 

Commission Public Staff; 

Withdrawal of Petition for 

Rulemaking“

(Contact: Michael T. Lesar, Office of 

Administration, 301-415-7163, or toll 

free: 800-368-5642, email: mtl@nrc.

gov)

“Withdrawal of Regulatory Guide 

(RG 1.176 and RG-1.150)” 73 FR 

7766, February 11, 2008. 

(Contact: Christina Antonescu, Office 

of Nuclear Regulatory Research, 301-

415-6792; email: cea1@nrc.gov)

“10 CFR Parts 170,171, Revision of 

Fee Schedules; Fee Recovery for FY 

2008” 73 FR 8507, 

February 13, 2008.

(Contact: Renu Suri, Office of the 

Chief Financial Officer, 301-415-

0161; email: rxs6@nrc.gov)

“10 CFR Parts 19, 20, 50, 

Occupational Dose Records, 

Labeling Containers, and the 

Total Effective Dose Equivalent; 

Confirmation of Effective Date” 73 

FR 8588; February 2, 2008.

(Contact: Steward Schneider, Office 

of Nuclear Reactor Regulation, 301-

415-4123; email: sxs4@nrc.gov)

“10 CFR Part 35, Medical Use of 

Byproduct Material-Amendments/

Medical Event Definitions” 73 FR 

8830, February 15, 2008.

(Contact; Edward M. Lohr, Office 

of Federal and State Materials 

and Environmental Management 

Programs, 301-415-0253; email: 

eml1@nrc.gov)

“NUREG-1556, Volume 9, Revision 

2, “Consolidated Guidance About 

Materials Licenses: ProgramSpecific Guidance About Medical 

use Licenses” 73 FR 8909, February 

15, 2008.

(Contact; Torre Taylor, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-7900; email: 

tmt@nrc.gov; or Donna-Beth Howe, 

Office of Federal and State Materials 

and Environmental Management 

Programs, 301-415-7848; email: 

dbh@nrc.gov)

“Strategic Plan for Fiscal Years 

2008-2013, NUREG-1614, Volume 

4; Availability” 73 FR 9362, 

February 20, 2008.

(Contact: Tamara Trocki, Office of 

the Chief Financial Officer, 301-415-

7439; email: tlt1@nrc.gov)

10 CFR Parts 60, 63, 73, 74, 

Geologic Repository Operations 

Area Security and Material Control 

and Accounting Requirements; 

Extension of Comment Period” 73 

FR 10187, February 26, 2008.

(Contact: Merri Horn, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-8126, e-mail: 

mlh1@nrc.gov)

“10 CFR Part 2, Delegated 

Authority to Order Use of 

Procedures for Access to Certain 

Sensitive Unclassified Information” 

73 FR 10978, February 29, 2008. 

(Contact: Tison Campbell, Office of 

the General Counsel, 301-415-8579, 

e-mail: tison.campbell@nrc.gov)

“10 CFR Part 2, Interlocutory 

Review of Rulings on Requests 

by Potential Parties for Access 

to Sensitive Unclassified NonSafeguards Information and 

Safeguards Information” (AI08) (F), 

73 FR 12627, March 10, 2008.

(Contact: Tison Campbell, Office of 

the General Counsel, 301-415-8579, 

e-mail tison.campbell@nrc.gov.)

“10 CFR Part 72, List of Approved 

Spent Fuel Storage Casks: HISTORM 100 Revision 5; Withdrawal 

of Direct Final Rule“ (AI24) (DF) 73 

FR 13071, March 12, 2008. 

(Contact: Jayne M. McCausland, 

Office of Federal and State Materials 

and Environmental Management 

Programs, 301-415-6219, e-mail: 

jmm2@nrc.gov). 

“10 CFR Part 50, Enhancements 

to Emergency Preparedness 

Regulations (Availability 

of preliminary draft rule 

language)(AI10) (P)” 73 FR 13157, 

March 12, 2008.
11

(Contact: Lauren Quinones-Navarro, 

Office of Nuclear Reactor Regulation, 

301-415-2007, e-mail, lqn@nrc.gov; 

or Kathryn Brock, Office of Nuclear 

Security and Incident Response, 

(301) 415–2015, e-mail, kmb3@nrc.

gov.)

“10 CFR Chapter I, RIN 3130-AH84, 

Expanded Definition of Byproduct 

Material; Notification of Impending 

Waiver Termination (AH84)” 73 FR 

14376, March 18, 2008.

(Contact: Kim K. Lukes, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-6701; e-mail: 

KXK2@NRC.GOV.)

“Draft Regulatory Guide: Issuance, 

Availability (DG-3032)” 73 FR 

14501, March 18, 2008.

(Contact: B. Von Till, Office of 

Federal and State Materials and 

Environmental Management 

Programs, 301-415-0598, email: 

RWV@nrc.gov.)

“10 CFR Parts 20, 30, 40, 50, 70, 72 

(P), Decommissioning Planning: 

Extension of Comment Period 

(AH45)” 73 FR 14946, March 20, 

2008 

(Contact: Kevin O’Sullivan, Office 

of Federal and State Materials 

and Environmental Management 

Programs, 301 415-8112, e-mail, 

kro2@nrc.gov.)

“10 CFR Part 26, Fitness for Duty 

Programs” (AF12) (F) 73 FR 16965, 

March 31, 2008.

(Contact: David Diec, Office of 

Nuclear Reactor Regulation, 301-

415-2834; Timothy McCune, Office 

of Nuclear Security and Incident 

Response, 301-415-6474; 

Dr. David R. Desaulniers, Office of 

New Reactors, 301-415-1043, or Dr. 

Valerie Barnes, Office of Nuclear 

Regulatory Research, 301-415-

5944. All of the above contacts 

may also be reached by e-mail to 

FITNESSFORDUTY@NRC.GOV.)
UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, DC 20555-0001

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