[Federal Register Volume 61, Number 2 (Wednesday, January 3, 1996)]
[Notices]
[Pages 193-195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-00041]



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NUCLEAR REGULATORY COMMISSION
[IA 95-061]


Gary A. Minnick; Order Prohibiting Involvement in NRC-Licensed 
Activities

I

    On various dates in 1992 and 1993, Gary A. Minnick was employed by 
various contractors to perform rigging and scaffolding work at nuclear 
power plants licensed by the Nuclear Regulatory Commission (NRC or 
Commission), including Palo Verde, Beaver Valley, and North Anna. In 
each case, Mr. Minnick was granted 

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temporary unescorted access to these power plants on the basis of 
information he submitted on security questionnaires. 10 CFR 73.56 and 
73.57 require, in part, that nuclear power plant licensees conduct 
access authorization programs for individuals seeking unescorted access 
to protected and vital areas with the objective of providing high 
assurance that individuals granted unescorted access are trustworthy 
and reliable and do not constitute an unreasonable risk to the health 
and safety of the public. The unescorted access authorization program 
must include a background investigation, including criminal history, 
and the decision to grant unescorted access authorization must be based 
upon the licensee's review and evaluation of all pertinent information 
developed.

II

    In order to be certified for unescorted access at Palo Verde, 
Beaver Valley, and North Anna, Mr. Minnick was required to complete 
security questionnaires which included a request that he list all prior 
criminal arrests or charges and provide the final disposition of each 
such arrest or charge. Mr. Minnick completed a security questionnaire 
on September 21, 1992 to gain unescorted access to North Anna, on 
January 7, 1993 and March 12, 1993 to gain unescorted access to Beaver 
Valley, and on September 30, 1993 to gain unescorted access to Palo 
Verde. In each case, Mr. Minnick was asked to list all arrests and 
charges against him and the disposition of these arrests and charges, 
with the exception of juvenile offenses and traffic citations not 
involving reckless driving or alcohol.
    Although Mr. Minnick listed one or two arrests on each of the forms 
he completed, he omitted from each of these forms several arrests and 
charges against him that occurred between 1971 and 1988 and that were 
required to be listed on the unescorted access authorization 
applications. Mr. Minnick also omitted potentially significant and 
material information associated with the arrests that he did list. 
Specifically, he consistently failed to disclose the fact that he was 
sentenced to one year in prison and served approximately 91 days after 
being convicted in 1988 of driving after being declared an habitual 
offender, which is a felony offense. Although the arrests and charges 
that Mr. Minnick listed varied from form to form, he failed to provide 
a complete list of his arrests and charges that were required to be 
listed on all of the involved forms.
    In August 1994, the NRC's Office of Investigations (OI) began an 
investigation to determine whether Mr. Minnick deliberately falsified 
and/or omitted criminal history background information relevant to the 
granting of unescorted access. In a report issued in April 1995, OI 
concluded that Mr. Minnick had deliberately falsified his criminal 
history background information which was used, in part, as the basis 
for granting him unescorted access to four NRC-licensed nuclear power 
plants. On October 6, 1995, the NRC conducted a predecisional 
enforcement conference with Mr. Minnick in Rockville, Maryland, to 
assist in determining whether civil enforcement action against him was 
warranted.
    During the enforcement conference, Mr. Minnick admitted that he had 
omitted arrest information from each of the forms, but denied that he 
did so deliberately. He stated at various times during the conference 
that: (1) He may have been rushed in completing the forms; (2) he 
believed that, by listing some arrest information, the remaining 
information would be discovered by the investigating agencies and that 
he believed a records check would be completed before he was granted 
unescorted access; (3) he thought that the forms required criminal 
background information only for the previous 5 years; (4) he completed 
the forms without the assistance of any records; (5) he didn't read all 
of the details in the application; and (6) he thought that by writing 
``habitual offender'' everyone would know that this offense entailed a 
prison sentence. The NRC has considered these statements but on balance 
finds them not to be convincing because: (1) The questionnaires were 
clear in requesting information about all arrests; (2) Mr. Minnick has 
stated that he read and understood the language of what he was reading; 
(3) on some of the forms, Mr. Minnick listed arrests that went beyond 
the 5-year period he stated that he believed was required; (4) Mr. 
Minnick exhibited a reasonably good recollection of his arrest record 
in listing different arrests on the various forms that he completed, 
and (5) Mr. Minnick consistently failed to reveal the fact that he was 
sentenced to a year in prison for one offense, instead indicating that 
he had received other sanctions for that offense. During the 
enforcement conference, Mr. Minnick indicated that he now clearly 
understands the importance of reporting fully and accurately all 
information requested.

III

    Based on the information described above, the NRC concludes that 
Mr. Minnick's omissions were deliberate and were in violation of 10 CFR 
50.5(a)(2), which prohibits individuals from deliberately providing 
information to a licensee or a contractor that the individual knows is 
inaccurate or incomplete in some respect material to the NRC. His 
omissions were material because, as indicated above, licensees are 
required to consider arrest information in making unescorted access 
determinations.
    The NRC must be able to rely on licensees, contractors and their 
employees to provide information that is complete and accurate in all 
material respects. This is essential with respect to access 
authorization programs at nuclear power plants because temporary access 
determinations are made on the basis of information provided by 
individuals prior to completion of background records check and because 
the purpose of such programs is to assure the trustworthiness and 
reliability of individuals granted access. Mr. Minnick's deliberate 
omissions, which occurred on multiple occasions, raise serious doubt as 
to whether he can be relied upon to comply with NRC requirements and to 
provide complete and accurate information to NRC licensees and their 
contractors, and raise doubts about his trustworthiness and 
reliability.
    Consequently, I lack the requisite reasonable assurance that 
licensed activities will be conducted in compliance with the 
Commission's requirements if Mr. Minnick were permitted at this time to 
be involved in any NRC-licensed activities. Therefore, the public 
health, safety and interest require that Mr. Minnick be prohibited from 
involvement in licensed activities, including obtaining unescorted 
access at a licensed facility, for a period of one (1) year from the 
date of this Order and that for a period of one (1) year following this 
prohibition period Mr. Minnick be required to inform the NRC if he 
accepts employment with any employer that would involve work in NRC-
licensed activities.

IV

    Accordingly, pursuant to Sections 103, 161b, 161i, 182 and 186 of 
the Atomic Energy Act of 1954, as amended, and the Commission's 
regulations in 10 CFR 2.202, and 10 CFR 50.5, it is hereby ordered, 
effective immediately, that:

    A. For a one-year period from the date of this Order, Mr. Gary 
A. Minnick is prohibited from engaging in NRC-licensed activities, 
including obtaining unescorted access at a licensed facility. For 
the purpose of this paragraph, NRC-licensed activities include 
licensed activities of: (1) an NRC licensee; (2) 

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an Agreement State licensee conducting licensed activities in NRC 
jurisdiction pursuant to 10 CFR 150.20; and (3) an Agreement State 
licensee involved in distribution of products that are subject to 
NRC jurisdiction.
    B. For a one-year period following the one-year prohibition 
under paragraph A above, Mr. Minnick shall, within 20 days of his 
acceptance of each employment offer involving NRC-licensed 
activities or his becoming involved in NRC-licensed activities as 
defined in Paragraph A above, provide notice to the Director, Office 
of Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 
20555, if he accepts employment with any employer that would involve 
work in NRC-licensed activities. The notice shall include the name, 
address, and telephone number of the employer. In the first 
notification, Mr. Minnick shall include a statement of his 
commitment to compliance with regulatory requirements and the basis 
why the Commission should have confidence that he will now comply 
with NRC requirements.

    The Director, Office of Enforcement, may, in writing, relax or 
rescind any of the above conditions upon demonstration by Mr. Minnick 
of good cause.

V

    In accordance with 10 CFR 2.202, Mr. Minnick must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order within 20 days of the date of this Order. The answer may consent 
to the conditions of this Order. The answer may also request a hearing 
on 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 must be made in writing to the Director, Office of Enforcement, 
U.S. Nuclear Regulatory Commission, Washington, D.C. 20555 and include 
a statement of good cause for the extension.
    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. Minnick 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 Service Section, Washington, DC 20555. Copies also shall be sent to 
the Director, Office of Enforcement, U.S. Nuclear Regulatory 
Commission, Washington, D.C. 20555 and to the Assistant General Counsel 
for Hearings and Enforcement at the same address, to the Regional 
Administrator, NRC Region IV, Suite 400, 611 Ryan Plaza, Arlington, 
Texas 76011, and to Mr. Minnick if the answer or hearing request is by 
a person other than Mr. Minnick. If a person other than Mr. Minnick 
requests a hearing, that person shall set forth with particularity the 
manner in which his or her 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. Minnick 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.
    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.

    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland this 22nd day of December 1995.

James L. Milhoan
Deputy Executive Director for Nuclear Reactor Regulation, Regional 
Operations and Research.
[FR Doc. 96-00041 Filed 1-2-96; 8:45 am]
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