```
[Federal Register Volume 60, Number 74 (Tuesday, April 18, 1995)]
[Notices]
[Pages 19419-19421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9506]

-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION
[Docket No. 150-00003 and License No. ARK-740-BP-1-94 EA 94-241]

Otho G. Jones (d.b.a. Jones Inspection Services) Alderson, 
Oklahoma; Order Suspending Authority Under General License (Effective 
Immediately)

I

    Jones Inspection Services is the holder of Radioactive Material 
License ARK-740-BP-1-94 (License) issued by the State of Arkansas, an 
NRC Agreement State. The License, as amended on December 22, 1994, 
authorizes Jones Inspection Services to possess, store and use sealed 
radioactive sources in various radiographic exposure devices in the 
State of Arkansas. Jones Inspection Services does not hold a specific 
NRC license. In accordance with 10 CFR 150.20, a general license is 
granted to Agreement State licensees to conduct the same activities in 
areas under NRC jurisdiction (referred to as ``reciprocity'') provided 
that the NRC is notified and the other provisions of 10 CFR 150.20 are 
followed.

II

    On July 14, 1994, an NRC investigation was conducted to determine 
whether Mr. Otho G. Jones, dba Jones Inspection Services, was using 
regulated byproduct material in NRC jurisdiction without NRC 
authorization. Based on interviews with Mr. Jones, the sole proprietor 
of Jones Inspection Services, and on documents obtained from the 
Central Oklahoma Oil and Gas Company, the investigation confirmed that 
Jones Inspection Services had illegally used and possessed regulated 
byproduct material in Oklahoma, a non-Agreement State in which the NRC 
maintains regulatory authority over such material. The NRC's 
investigation determined that Jones Inspection Services stored three 
radiographic exposure devices containing sealed sources of radioactive 
material in Oklahoma from at least January 1, 1994, to July 1994, and 
that these devices had been used to perform industrial radiography in 
Oklahoma from April 1, 1994, to June 27, 1994 for Central Oklahoma Oil 
and Gas Company. The investigation also determined that these 
activities were conducted without NRC authorization. Specifically, the 
investigation found that Jones Inspection Services did not hold an NRC 
license as required by 10 CFR 30.3 and that Jones Inspection Services 
did not notify the NRC, in accordance with the provisions of 10 CFR 
150.20, that it planned to conduct radiography at temporary job sites 
in NRC jurisdiction. Thus, these activities were not subject to 
inspection by the NRC to assure the protection of the public health and 
safety.
    In a signed statement Mr. Jones provided to the NRC investigator, 
Mr. Jones said that he did not know he had to notify the NRC and did 
not know to whom the information should be provided. Further, Mr. Jones 
indicated that he ``did think to call the NRC about reciprocity, but I 
am afraid of the NRC and did not want more hassle [sic] so I chose not 
to call them about working in Oklahoma.'' Furthermore, Mr. Jones was 
the sole proprietor of Tumbleweed X-Ray Company in September 1991 when 
that company was issued an NRC order specifically suspending its 
authority to conduct radiography activities in Oklahoma and other 
states in which NRC maintained regulatory authority.\1\

    \1\Otho G. Jones' previous company, Tumbleweed X-Ray Company, 
was prohibited by Order for conducting licensed activities in non-
Agreement States until September 6, 1994. Thus, had Mr. Jones 
notified the NRC of his intent to conduct radiography activities in 
Oklahoma in early 1994, it is likely that the NRC would have acted 
to prohibit those activities.
[[Page 19420]]

    On July 21, 1994, the NRC issued a Confirmatory Action Letter (CAL 
4-94-07) which described voluntary commitments made by Mr. Jones to 
discontinue the use of three radiographic exposure devices in his 
possession and to transfer the devices to authorized recipients. Mr. 
Jones informed NRC Region IV personnel on the same date that he had 
transferred two devices to an NRC licensee in the State of Oklahoma and 
was preparing to ship a third device on or around August 8, 1994. These 
commitments were replaced and superseded by the Order to Cease and 
Desist Use and Possession of Regulated Byproduct Material in NRC 
Jurisdiction dated July 26, 1994. Since that time, Mr. Jones has 
received Amendment 07, dated December 22, 1994, to his Arkansas License 
ARK-740-BP-1-94 to store radioactive byproduct material in the State of 
Arkansas and at temporary job sites. This does not include areas under 
NRC jurisdiction.
    On January 31, 1995, the NRC conducted an enforcement conference 
with Mr. Jones to ascertain the circumstances under which Mr. Jones 
conducted licensed activities in NRC jurisdiction without obtaining a 
specific or general use license. During that conference, Mr. Jones 
stated, in part, that he was unaware of NRC requirements related to an 
Agreement State licensee's conduct of radiography in the State of 
Oklahoma (a non-Agreement State) and that he had made no effort to 
determine what the requirements were. Based on the information provided 
during the conference, it was determined that Mr. Jones was not 
knowledgeable of current NRC requirements. While Mr. Jones stated that 
he knew ``radiation safety [requirements] to the letter,'' he admitted 
that he had ``no idea'' if NRC requirements for radiography had changed 
in the last three years. Furthermore, despite the fact that Mr. Jones 
filed for reciprocity in Kansas and Kentucky, both of which are 
Agreement States, he did not take reasonable steps to determine the 
reciprocity requirements for working in Oklahoma.

III

    Based on the above, the NRC concludes that Mr. Otho G. Jones has 
demonstrated careless disregard for NRC requirements. This resulted in 
Mr. Jones' use of regulated byproduct material in NRC jurisdiction 
without first acquiring an NRC specific use license or following the 
reciprocity requirements of 10 CFR 30.3 and 10 CFR 150.20, 
respectively. This is prohibited by Section 81 of the Atomic Energy Act 
(AEA) of 1954, as amended, and by 10 CFR 30.3, which state that (except 
for persons exempt as provided in 10 CFR Parts 30 and 150) no person 
shall possess or use byproduct material, except as authorized in a 
specific or general use NRC license.
    Improper handling of byproduct material can result in unnecessary 
exposure to radiation and, in some cases, serious injury. The Atomic 
Energy Act and the Commission's regulations require that the possession 
of licensed material be under a regulated system of licensing and 
inspection. Mr. Jones' actions in this case prevented the NRC from 
assuring, through licensing and inspection, that byproduct material is 
being used safely and in accordance with all NRC requirements.
    Based on Mr. Jones' lack of knowledge and competence in following, 
and careless disregard for, NRC requirements, I lack the requisite 
reasonable assurance that Jones Inspection Services can conduct 
licensed activities in compliance with NRC requirements and that the 
health and safety of the public will be protected in areas under NRC 
jurisdiction should Mr. Jones, Jones Inspection Services, or any 
successor entity engage in activities under the reciprocity provisions 
of 10 CFR 150.20. Therefore, the public health, safety, and interest 
require that the July 26, 1994 Order to Mr. Otho G. Jones, d.b.a. Jones 
Inspection Services, be superseded by this Order to suspend Mr. Jones', 
Jones Inspection Services', or any successor entity's authority granted 
by 10 CFR 150.20 to conduct activities in NRC jurisdiction. This Order 
is applicable to successor entities engaged in NRC or Agreement State 
licensed activities within NRC jurisdiction wherein Mr. Jones is a 
corporate officer or owner. Furthermore, pursuant to 10 CFR 2.202, I 
find that the significance of the conduct described above is such that 
the public health, safety and interest require that this Order be 
immediately effective.

IV

    Accordingly, pursuant to sections 81, 161b, 161i, 182 and 186 of 
the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR 2.202, 10 CFR Part 30 and 10 CFR Part 150, It is 
hereby ordered, effective immediately, that the authority of Mr. Otho 
G. Jones, d.b.a. Jones Inspection Services, and any successor entity in 
which Mr. Jones is a corporate officer or owner, to conduct activities 
in areas under NRC jurisdiction under the general license granted by 10 
CFR 150.20(a) is suspended.
    The Regional Administrator, Region IV, may, in writing, relax or 
rescind this Order upon demonstration by Mr. Jones for good cause. Any 
request by Mr. Jones for relaxation or rescission of this Order must 
address the following:
    A. Demonstration of Mr. Jones' understanding of applicable NRC 
requirements for the possession, storage and use of regulated byproduct 
material in NRC jurisdiction prior to filing an NRC From 241 for 
performance of licensed activities in areas of NRC jurisdiction under 
the provisions of 10 CFR 150.20. This will require that Mr. Jones 
complete a formal training process and satisfactorily pass a written 
exam administered during the formal training process on NRC regulations 
applicable to the use of regulated byproduct material. Formal training 
shall be conducted by a consultant as described in paragraph B below or 
another entity approved by NRC.
    B. Retention of the services of an independent individual or 
organization (consultant) to perform a program and process 
implementation audit, to demonstrate Mr. Jones' knowledge of, and 
compliance with, applicable NRC requirements, prior to Mr. Jones 
conducting activities within NRC jurisdiction. The name and 
qualifications of the consultant proposed to conduct the audit shall be 
submitted to the Regional Administrator, NRC Region IV, for review and 
approval. The consultant shall be independent of Mr. Otho Jones and 
Jones Inspection Services and have experience in the implementation of 
a radiation safety program and NRC requirements.
    C. The audit required by Paragraph B shall be completed and Mr. 
Jones shall have the consultant submit its audit report and any 
recommendations for improvement to Mr. Jones and directly to the 
Regional Administrator, NRC Region IV prior to Mr. Jones submitting an 
NRC Form 241. This shall include the demonstrated resolution of any 
weaknesses or negative findings identified by the audit or a statement 
as to why the weaknesses or findings are not valid or do not need 
correction. The audit of Mr. Jones' performance shall include, but not 
be limited to:
    1. A review of the administrative, operating and emergency 
procedures to ensure that such procedures are appropriate and meet the 
requirements established for working under NRC reciprocity 
requirements. [[Page 19421]] 
    2. On-site review of Mr. Jones' field activities, and interviews 
and observations of any selected authorized users (other than Mr. 
Jones) working at various locations.
    D. Mr. Jones shall provide notice to the NRC seven days prior to 
working in areas of NRC jurisdiction under the provisions of 10 CFR 
150.20.

V

    In accordance with 10 CFR 2.202, Mr. Jones 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 20 days of the 
date of this Order.
    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 set forth the matters of fact and law on which Mr. Jones 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, U.S. Nuclear Regulatory Commission, 
ATTN: Chief, Docketing and Services Section, Washington, D.C. 20555. 
Copies also shall be sent to the Director, Office of Enforcement, U.S. 
Nuclear Regulatory Commission, Washington, D.C. 20555, to the Assistant 
General Counsel for Hearings and Enforcement at the same address, to 
the Regional Administrator, NRC Region IV, 611 Ryan Plaza Drive, Suite 
400, Arlington, Texas 76011-8064, and to Mr. Jones, if the answer or 
hearing request is by a person other than Mr. Jones. If a person other 
than Mr. Jones 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. Jones 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. Otho Jones, Jones Inspection 
Services, or any other person adversely affected by this Order, 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, the provisions specified 
in Section IV above shall be final 20 days from the date of this Order 
without further order or proceedings. An answer or a request for 
hearing shall not stay the immediate effectiveness of this order.

    Dated at Rockville, Maryland this 11th day of April 1995.

For the Nuclear Regulatory Commission.
Hugh L. Thompson, Jr.,
Deputy Executive Director for Nuclear Materials Safety, Safeguards, and 
Operations Support.
[FR Doc. 95-9506 Filed 4-17-95; 8:45 am]
BILLING CODE 7590-01-M
```