Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices 63629

NUCLEAR REGULATORY

COMMISSION

[IA–00–006]

In the Matter of Rodney Lillard; Order

Prohibiting Involvement in NRC

Licensed Activities (Effective

Immediately)

I

Mr. Rodney Lillard served as

Radiation Safety Officer (RSO) and

President of NDT Services, Inc. (NDTS)

in 1995. At the time, NDTS (Licensee)

was the holder of Materials License No.

52–19438–01 issued by the Nuclear

Regulatory Commission (NRC) pursuant

to 10 CFR part 30. The License

authorized possession and use of up to

100 curies of iridium-192 and 20 curies

of cobalt-60 in sealed radiography

sources. The License was originally

issued on August 21, 1980, and was due

to expire on January 31, 2002. However,

the License was suspended pursuant to

an Order Suspending License (Effective

Immediately) that was issued on March

27, 1998, pending the results of an NRC

Office of Investigations (OI)

investigation (see Section II). A

subsequent Order Modifying License

(Effective Immediately) issued on

January 15, 1999, required NDTS to

dispose of licensed material in its

possession. The License was terminated

on October 16, 2000.

II

The NRC Office of Investigations (OI)

initiated an investigation on August 26,

1997, to determine whether NDTS, Inc.,

retaliated against several radiographers

for raising concerns regarding safety and

training issues. The investigation also

addressed numerous other issues

including: personnel training; dosimetry

usage; conduct of surveys; completion

of survey records; the alleged

performance of radiography by assistant

radiographers without direct

observation; an alleged 1995 event

involving NDTS’ inability to retract a

radiography source assembly to its fully

shielded position (‘‘a source disconnect

event’’); and the alleged failure to report

the 1995 event. The investigation did

not substantiate that discrimination

occurred, but identified numerous

examples of the willful failure to

comply with NRC regulations, including

the deliberate failure to report a source

disconnect event.

The OI investigation determined that

in early 1995, NDTS experienced a

source disconnect event at the Phillips

Puerto Rico Core Site. The source

disconnect occurred when a 75 curie

iridium-192 radiography source

assembly failed to retract to its fully

shielded position due to improper

handling by the assistant radiographer.

Mr. Lillard stated in his testimony to OI

that he created a record of the event;

however, no such record was produced

during the investigation. The NRC has

no record or other indication that the

former RSO or any other NDTS

employee reported the event to the NRC

prior to the time its occurrence was

alleged in August 1997.

In 1995, 10 CFR 34.30 required that

the Licensee provide a written report to

the NRC within 30 days of the

occurrence of: (1) An unintentional

disconnection of the source assembly

from the control cable; (2) an inability

to retract the source assembly to its fully

shielded position and secure it in this

position; or (3) the failure of any

component (critical to safe operation of

the device) to properly perform its

intended function. The OI investigation

determined that in 1995, Mr. Lillard, as

the RSO, deliberately failed to report the

source disconnect event involving the

inability to retract a 75 curie iridium192 radiography source assembly to its

fully shielded position or ensure that a

report was made to the NRC.

In addition, 10 CFR 30.9(a) requires,

in part, that information provided to the

Commission by a licensee, or

information required by the

Commission’s regulations to be

maintained by the Licensee, shall be

complete and accurate in all material

respects. During a June 1995 inspection,

Mr. Lillard was asked by the NRC

inspector whether any reportable events

had occurred since the previous

inspection. In response, Mr. Lillard

indicated that the Licensee had not had

any reportable events since the previous

inspection when, in fact, the Licensee

had experienced the source disconnect

event which Mr. Lillard knew was

reportable. This deliberate failure to

inform the NRC of the event was

material to the NRC because it

prevented the NRC from exercising its

regulatory responsibility to evaluate the

event, which could have had safety

implications. In addition, licensee

officials are expected to provide

complete and accurate information to

the NRC, in order that the NRC may

have the requisite assurance that

activities are being conducted safely and

in accordance with regulatory and

license requirements.

Mr. Lillard was aware, as evidenced

by his testimony to OI, that: (1) The

source disconnect event had occurred;

(2) the event was reportable to the NRC;

(3) as the RSO at the time of the event,

it was his responsibility to report it to

the NRC; and (4) that the NRC was, at

the time, investigating a similar source

disconnect event involving NDTS that

occurred in 1993. Based on these facts,

the NRC determined that Mr Lillard’s

failures to comply with 10 CFR 34.30

and 30.9(a) appeared to be deliberate;

and thus, constituted violations of 10

CFR 30.10, ‘‘Deliberate Misconduct.’’ 10

CFR 30.10 prohibits any employee of a

licensee from deliberately engaging in

activities which cause a licensee to be

in violation of any rule, regulation, or

order; or any term, condition or

limitation of any license. This

regulation also prohibits any employee

of a licensee from deliberately

submitting to the NRC or a licensee,

information that the person submitting

the information knows to be incomplete

or inaccurate in some respect material to

the NRC.

By letter dated March 6, 2000, Mr.

Lillard was advised that his actions

appeared to be in violation of 10 CFR

30.10 and was offered the opportunity

to either attend a predecisional

enforcement conference or respond to

the two violations in writing.

Subsequently, on April 19, 2000, Mr.

Lillard requested a copy of his

transcribed interview with OI in order

to support his possible participation at

a predecisional enforcement conference.

On May 3, 2000, Mr. Lillard was

provided his transcript via certified

mail. The certified mail return receipt

indicated that Mr. Lillard received his

transcript on May 10, 2000. To date, no

response has been received from Mr.

Lillard.

III

Based on the above, the NRC has

concluded that Mr. Lillard engaged in

deliberate misconduct when he: (1)

Failed to report or ensure that a report

was made to the NRC within 30 days of

the occurrence of a 1995 source

disconnect event; and (2) failed to

provide complete and accurate

information to the NRC when he

advised an NRC inspector during a June

1995 inspection that no reportable

events had occurred. Mr. Lillard’s

deliberate actions in both instances

caused the Licensee to be in violation of

10 CFR 34.30 and 10 CFR 30.9,

respectively, and are, therefore,

violations of 10 CFR 30.10. The NRC

must be able to rely on licensees and

their employees to fully comply with

NRC requirements, including reporting

requirements for events involving

licensed material, and to communicate

with accuracy and completeness on

regulatory matters.

In view of the foregoing, I lack the

requisite reasonable assurance that

licensed activities can be conducted in

63630 Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices

compliance with NRC requirements and

that the health and safety of the public

will be protected if Mr. Lillard were

permitted to be involved in NRClicensed activities at this time.

Therefore, the public health, safety and

interest require that Mr. Lillard be

prohibited from any involvement in

NRC-licensed activities for a period of

five years from the date of this Order.

Additionally, Mr. Lillard is required to

notify the NRC of his first employment

and all subsequent employment in NRClicensed activities for a period of five

years following the prohibition period.

Furthermore, pursuant to 10 CFR 2.202,

I find that the significance of Mr.

Lillard’s conduct is such that the public

health, safety and interest require that

this Order be immediately effective.

IV

Accordingly, pursuant to sections

81,161b, 161i, 161o, 182 and 186 of the

Atomic Energy Act of 1954, as amended,

and the Commission’s regulations in 10

CFR 2.202, 10 CFR 30.9, 10 CFR 30.10

and 10 CFR 34.30, it is hereby ordered,

effective immediately, that:

1. Mr. Rodney Lillard is prohibited for

five years from the date of this Order

from engaging in NRC-licensed

activities. NRC-licensed activities are

those activities that are conducted

pursuant to a specific or general license

issued by the NRC, including, but not

limited to, those activities of Agreement

State licensees conducted pursuant to

the authority granted by 10 CFR 150.20.

2. If Mr. Lillard is currently

performing licensed activities for

another licensee in an area of NRC

jurisdiction, he must immediately cease

those activities, and inform the NRC of

the name, address and telephone

number of the employer, and provide a

copy of this Order to the employer.

3. For a period of five years after the

five year prohibition has expired, Mr.

Rodney Lillard shall, within 20 days of

the date of his acceptance of subsequent

employment offers involving his

performance of NRC-licensed activities

or his becoming involved in NRClicensed activities, as defined in

Paragraph IV.1 above, provide notice of

his employment to the Director, Office

of Enforcement, U.S. Nuclear Regulatory

Commission, Washington, DC 20555,

including the name, address, and

telephone number of the employer or

the entity where he is, or will be,

involved in the NRC-licensed activities.

In the first notification, Mr. Rodney

Lillard shall include a statement of his

commitment to compliance with

regulatory requirements and a statement

regarding why the Commission should

have confidence that he will now

comply with applicable NRC

requirements.

The Director, Office of Enforcement,

U.S. Nuclear Regulatory Commission

may relax or rescind, in writing, any of

the above conditions upon a showing by

Mr. Rodney Lillard of good cause.

V

In accordance with 10 CFR 2.202, Mr.

Lillard must, and any person adversely

affected by this Order may, submit an

answer to this Order, and may request

a hearing on this Order, within 20 days

of its issuance. 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, 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 admit or deny

each allegation or charge made in this

Order and shall set forth the matters of

fact and law on which Mr. Lillard or

other persons 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, U.S. Nuclear

Regulatory Commission, ATTN: Chief,

Rulemakings and Adjudications Staff,

Washington, DC 20555. Copies also

shall be sent to the Director, Office of

Enforcement, U.S. Nuclear Regulatory

Commission, Washington, DC 20555, to

the Deputy Assistant General Counsel

for Materials Litigation and

Enforcement, at the same address, and

to the Regional Administrator, NRC

Region II, Atlanta Federal Center, 61

Forsyth Street, S.W., Suite 23T85,

Atlanta, Georgia 30303–3415 and to Mr.

Lillard if the answer or hearing request

is by a person other than Mr. Lillard. If

a person other than Mr. Lillard 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 CFR 2.714(d).

If a hearing is requested by Mr. Lillard

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.

Pursuant to 10 CFR 2.202(c)(2)(i), Mr.

Lillard, may, in addition to demanding

a hearing, at the time the answer is filed

or sooner, move the presiding officer to

set aside the immediately effectiveness

of the Order on the ground that the

Order, including the need for

immediately 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 IV above shall be final 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 IV 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.

For the Nuclear Regulatory Commission.

Dated this 17th day of October 2000.

Carl J. Paperiello,

Deputy Executive Director for Materials,

Research, and State Programs.

[FR Doc. 00–27286 Filed 10–23–00; 8:45 am]

BILLING CODE 7590–01–P

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–245, 50–336, and 50–423]

Northeast Nuclear Energy Company et

al.; Millstone Nuclear Power Station,

Unit Nos. 1, 2, and 3; Notice of

Consideration of Approval of Transfer

of Facility Operating Licenses and

Conforming Amendments and

Opportunity for a Hearing

The U.S. Nuclear Regulatory

Commission (the Commission) is

considering the issuance of an order

under 10 CFR 50.80 approving the

transfer of Facility Operating Licenses

Nos. DPR–21, DPR–65, and NPF–49 for

Millstone Nuclear Power Station, Unit

Nos. 1, 2, and 3 (M1, M2, and M3) to

the extent currently held by Northeast

Nuclear Energy Company (NNECO), the

licensed operator and non-owner of the

facilities, and certain co-licensees listed

below holding ownership interests in

the facilities. The transfer would be to

a new generating company, Dominion

Nuclear Connecticut, Inc., (DNC). DNC

is an indirect subsidiary of Dominion

Energy, which is in turn owned by

Dominion Resources, Inc. The

Commission is also considering

amending the licenses for

administrative purposes to reflect the

proposed transfer. The facilities are

located in New London County,

Connecticut.