[Federal Register Volume 65, Number 206 (Tuesday, October 24, 2000)]
[Notices]
[Pages 63629-63630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27286]



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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 iridium-
192 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

[[Page 63630]]

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 NRC-licensed 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 NRC-
licensed 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 NRC-licensed 
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