81 FR 71119 - In the Matter of Power Resources, Inc.

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 81, Issue 199 (October 14, 2016)

The U.S. Nuclear Regulatory Commission (NRC) is issuing a confirmatory order to Power Resources, Inc., confirming agreements reached in an alternative dispute resolution mediation session held on September 22, 2016. As part of the agreement, Power Resources, Inc., will conduct annual meetings among key management, radiation safety officer, facility managers, and other appropriate technical personnel to provide assurance that management understands the requirements of a radiation protection program are being met; will provide training which will emphasize the importance of complete and accurate information for all required records, correspondence, and communications with the NRC and its staff; and will have a qualified member of the heath physics staff available at any of its facilities when equipment is being released from a radiologically-controlled are to an unrestricted area.

[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Notices]
[Pages 71119-71122]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24872]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 040-08964; License No. SUA-1548; EA-16-051; NRC-2016-0211]


In the Matter of Power Resources, Inc.

AGENCY: Nuclear Regulatory Commission.

ACTION: Confirmatory order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing a 
confirmatory order to Power Resources, Inc., confirming agreements 
reached in an alternative dispute resolution mediation session held on 
September 22, 2016. As part of the agreement, Power Resources, Inc., 
will conduct annual meetings among key management, radiation safety 
officer, facility managers, and other appropriate technical personnel 
to provide assurance that management understands the requirements of a 
radiation protection program are being met; will provide training which 
will emphasize the importance of complete and accurate information for 
all required records, correspondence, and communications with the NRC 
and its staff; and will have a qualified member of the heath physics 
staff available at any of its facilities when equipment is being 
released from a radiologically-controlled are to an unrestricted area.

DATES: The confirmatory order was issued on September 30, 2016.

ADDRESSES: Please refer to Docket ID NRC-2016-0211 when contacting the 
NRC about the availability of information regarding this document. You 
may obtain publicly-available information related to this document 
using any of the following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0211. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For questions about the Order, 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section of this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and 
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS, 
please contact the NRC's Public Document Room (PDR) reference staff at 
1-800-397-4209, 301-415-4737, or by email to [email protected]. The 
ADAMS accession number for each document referenced (if it is available 
in ADAMS) is provided the first time that it is mentioned in this 
document.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: John Kramer, Region IV, U.S. Nuclear 
Regulatory Commission, 1600 E. Lamar Blvd., Arlington, TX 76011-4511; 
telephone: 817-200-1121; email: [email protected].

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated at Arlington, Texas, this 30th day of September 2016.

    For the Nuclear Regulatory Commission.

Kriss M. Kennedy,
Regional Administrator.

ATTACHMENT--CONFIRMATORY ORDER MODIFYING LICENSE

UNITED STATES OF AMERICA

NUCLEAR REGULATORY COMMISSION

In the Matter of Power Resources, Inc.

[Docket No. 040-08964; License No. SUA-1548]

EA-16-051

CONFIRMATORY ORDER MODIFYING LICENSE

(EFFECTIVE UPON ISSUANCE)

I

    Power Resources, Inc. (PRI or Licensee), is the holder of Source 
Material License SUA-1548 issued on May 8, 2001, by the U.S. Nuclear 
Regulatory Commission (NRC or Commission) pursuant to Part 40 of 
Title 10 of the Code of Federal Regulations (10 CFR). The license 
authorizes the operation of PRI's North Butte satellite facility in 
accordance with conditions specified therein. The facility is 
located on the licensee's site in Campbell County, Wyoming.
    This Confirmatory Order is the result of an agreement reached 
during an alternative dispute resolution (ADR) mediation session 
conducted on September 22, 2016.

II

    On June 27, 2014, the NRC's Office of Investigations (OI), 
initiated an investigation (OI Case No. 4-2014-034) at PRI's North 
Butte satellite facility. Based on the evidence developed during its 
investigation, the NRC identified apparent violations of 10 CFR 
20.1501, ``Surveys and Monitoring--General,'' and 10 CFR 40.9, 
``Completeness and accuracy of information,'' as well as, two 
apparent violations of License Condition 9.3 of License SUA 1548, 
Amendment 18, dated March 27, 2013, which includes the requirement 
that the licensee conduct its operations in accordance with Volume 
1, Chapter 9, ``Management Control Procedures,'' of the licensee's 
application dated May 6, 2003, as amended based on letter dated 
March 20, 2008. In addition, based on OI's investigative results, 
the NRC is concerned that willfulness may be associated with the 
apparent violation involving the failure to maintain accurate 
records of contamination exit surveys. By letter dated August 24, 
2016, the NRC notified PRI of the results of the investigation and 
provided an opportunity to: (1) Provide a response in writing, (2) 
attend a

[[Page 71120]]

predecisional enforcement conference, or (3) participate in an ADR 
mediation session in an effort to resolve these concerns.
    In response to the NRC's offer, PRI requested the use of the 
NRC's ADR process to resolve differences it had with the NRC. On 
September 22, 2016, the NRC and PRI met in an ADR session mediated 
by a professional mediator, arranged through Cornell University's 
Institute on Conflict Resolution. The ADR process is one in which a 
neutral mediator, with no decision-making authority, assists the 
parties in reaching an agreement on resolving any differences 
regarding the dispute. This Confirmatory Order is issued pursuant to 
the agreement reached during the ADR process.

III

    During that ADR session, PRI and the NRC reached a preliminary 
settlement agreement. The NRC recognizes the corrective actions that 
PRI has already implemented associated with the apparent violations. 
The elements of the agreement include the following:
    Corrective actions taken by PRI include:
    A. Problem Evaluation.
    1. Completed a prompt apparent cause investigation into the 
incident, including an assessment of compliance with company 
procedures and proposed corrective actions. Included appropriate 
notification of regulatory authorities.
    2. Engaged external counsel to conduct an independent 
investigation of allegations of falsification of survey records. 
Included appropriate notification of regulatory authorities.
    B. Communications.
    1. The PRI President issued a written communication to all North 
Butte employees describing expectations that employees will comply 
with NRC regulations and license requirements, Cameco code of 
conduct, and principles of a safety conscious work environment.
    2. The PRI President met with employees involved in NRC-
regulated activities at each facility, as well as employees at 
corporate offices that were involved with activities conducted under 
the license, to discuss management's expectations for employee 
compliance with NRC and licensee requirements, Cameco code of 
conduct, ethics, and principles of a safety conscious work 
environment.
    C. Training.
    1. Conducted training on ``Government Oversight of Uranium 
Mining,'' including discussion of complete and accurate information, 
deliberate misconduct, and employee protection requirements for all 
employees at the North Butte facility.
    2. Conducted training for supervisory employees regarding 
enhanced investigative and documentation techniques for issues that 
have the potential to include employee wrongdoing, including 
deliberate misconduct, falsification of documents, and harassment, 
retaliation, and chilling effects at the Smith Ranch, North Butte, 
and Crow Butte facilities.
    3. Conducted training for supervisory employees regarding 
maintenance of a safety conscious work environment, including 
employee protection, barriers to a safety conscious work 
environment, chilling effects, and best practices. The safety 
conscious work environment training included an interactive 
discussion of multiple case studies and examples relevant to the PRI 
operational facilities.
    4. Conducted management/supervisor team training on the Cameco 
Code of Conduct and Ethics at the PRI operational facilities.
    5. Conducted immediate refresher training on requirements for 
free release surveys, contractor training, and documentation of 
daily monitoring records for the North Butte Mine Manager, 
Operations Supervisor, and Safety Health Environment and Quality 
Specialist III.
    6. Added training specific to the proper use of daily monitoring 
records to the PRI annual refresher training and to the new hire/
contractor radiation training.
    7. Added training on processes involving free release surveys, 
personnel qualified to perform free release surveys of equipment, 
and on the use of specific forms to the PRI annual refresher 
training and new hire/contractor radiation training.
    8. To ensure the effectiveness of the training, examination 
questions regarding free release surveys were added to the test that 
all personnel must pass in order to work unescorted in 
radiologically-controlled areas at all PRI facilities.
    D. Work Processes.
    1. Conducted assessment of processes for initiating and 
completing inquiries into alleged employee misconduct, including 
scope, timeliness, and determinations regarding such allegations, 
and a review of the employee handbook. Made updates as appropriate.
    2. Conducted a review of procedures, annual and refresher 
training, and work processes for revisions and enhancements. Made 
changes where appropriate. Changes included revised procedures for 
completing and documenting hazard awareness training, and 
improvements in the process for completing, documenting, and 
maintenance-of-records for daily monitoring records.
    The elements of the agreement, as signed by both parties, 
consist of the following:
    A. The NRC has concluded that a willful violation of Title 10 of 
the Code of Federal Regulations (10 CFR) 40.9(a) occurred between 
September 12, 2013, and February 6, 2014, when an operations 
supervisor documented contamination control exit surveys of contract 
personnel exiting the North Butte satellite facility when, in fact, 
the exit surveys were not performed. Power Resources, Inc., agrees 
with this conclusion.
    B. Within 12 months of the issuance date of the Confirmatory 
Order and on an annual basis thereafter, PRI will conduct a meeting 
among key management, radiation safety officer, facility managers, 
and other appropriate technical personnel to provide assurance that 
management understands the requirements of a radiation protection 
program such that they can perform reviews to ensure the 
requirements are being met.
    1. The meeting will include discussion and review of performance 
indicators, license changes, preparations for major changes in 
operations, health physics issues, procedure compliance indicators, 
operational safety issues, and the radiation protection program.
    2. A summary of each annual meeting will be retained for a 
period of at least 3 years after the meeting is held.
    C. Within 12 months of the issuance date of the Confirmatory 
Order, PRI will incorporate 10 CFR 40.9, ``Completeness and accuracy 
of information,'' and 10 CFR 40.10, ``Deliberate misconduct,'' 
requirements into initial and annual employee refresher training for 
all employees involved in NRC-regulated activities.
    1. The training will emphasize the importance of complete and 
accurate information for all required records, correspondence, and 
communications with the NRC and its staff.
    2. Training will emphasize individual accountability and clearly 
express that willful or deliberate failures to comply with 
regulations, orders, or license requirements could result in 
significant individual enforcement action by the NRC.
    3. The training will reinforce that if any individual recognizes 
a non-compliance, they will immediately report the observation of 
the non-compliance to management.
    D. Power Resources, Inc., will have a qualified member of the 
health physics staff available at any of its facilities when 
equipment is being released from a radiologically-controlled area to 
an unrestricted area. If a qualified member of the health physics 
staff is unavailable, the equipment will not be released from the 
radiologically-controlled area.
    E. Notifications to the NRC when actions are completed.
    1. Power Resources Inc., will submit written notification to the 
Director, Division of Nuclear Materials Safety, U.S. Nuclear 
Regulatory Commission, Region IV, 1600 East Lamar Blvd., Arlington, 
Texas 76011-4511, at intervals not to exceed 12 months until the 
terms of this Confirmatory Order are completed, providing a status 
of each item in the Order.
    2. Power Resources Inc., will provide its basis for concluding 
that the terms of the Confirmatory Order have been satisfied, to the 
NRC, in writing to Director, Division of Nuclear Materials Safety, 
U.S. Nuclear Regulatory Commission, Region IV, 1600 East Lamar 
Blvd., Arlington, Texas 76011-4511. The NRC will review to confirm 
whether or not the terms of the Confirmatory Order have been 
satisfied.
    F. Administrative items.
    1. The NRC and PRI agree that the above elements will be 
incorporated into a Confirmatory Order.
    2. The NRC will consider the Confirmatory Order an escalated 
enforcement action with respect to future enforcement actions. The 
NRC will give the licensee credit for identification of this willful 
violation as of May 20, 2014.
    3. In consideration of the commitments delineated above, the NRC 
agrees not to issue a Notice of Violation for the violations 
discussed in NRC Investigation Report 4-2014-034 and letter issued 
by the NRC dated August 24, 2016, (EA-16-051), and not to issue an 
associated civil penalty.
    4. This agreement is binding upon successors and assigns of PRI.
    Based on the completed actions described above, and the 
commitments described in

[[Page 71121]]

Section V below, the NRC agrees to not pursue any further 
enforcement action based on the apparent violations identified in 
the NRC's August 24, 2016, letter.
    On September 27, 2016, PRI consented to issuing this 
Confirmatory Order with the commitments, as described in Section V 
below. Power Resources Inc., further agreed that this Confirmatory 
Order is to be effective upon issuance, the agreement memorialized 
in this Confirmatory Order settles the matter between the parties, 
and that it has waived its right to a hearing.

IV

    I find that PRI's actions completed, as described in Section III 
above, combined with the commitments as set forth in Section V are 
acceptable and necessary, and conclude that with these commitments 
public health and safety are reasonably assured. In view of the 
foregoing, I have determined that public health and safety require 
that PRI's commitments be confirmed by this Confirmatory Order. 
Based on the above and PRI's consent, this Confirmatory Order is 
effective upon issuance.

V

    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 and 10 CFR part 40, it is 
hereby ordered, effective upon issuance, that License No. SUA-1548 
is modified as follows:
    A. Within 12 months of the issuance date of the Confirmatory 
Order and on an annual basis thereafter, PRI will conduct a meeting 
among key management, radiation safety officer, facility managers, 
and other appropriate technical personnel to provide assurance that 
management understands the requirements of a radiation protection 
program such that they can perform reviews to ensure the 
requirements are being met.
    1. The meeting will include discussion and review of performance 
indicators, license changes, preparations for major changes in 
operations, health physics issues, procedure compliance indicators, 
operational safety issues, and the radiation protection program.
    2. A summary of each annual meeting will be retained for a 
period of at least 3 years after the meeting is held.
    B. Within 12 months of the issuance date of the Confirmatory 
Order, PRI will incorporate 10 CFR 40.9, ``Completeness and accuracy 
of information,'' and 10 CFR 40.10, ``Deliberate misconduct,'' 
requirements into initial and annual employee refresher training for 
all employees involved in NRC-regulated activities.
    1. The training will emphasize the importance of complete and 
accurate information for all required records, correspondence, and 
communications with the NRC and its staff.
    2. Training will emphasize individual accountability and clearly 
express that willful or deliberate failures to comply with 
regulations, orders, or license requirements, could result in 
significant individual enforcement action by the NRC.
    3. The training will reinforce that if any individual recognizes 
a non-compliance, they will immediately report the observation of 
the non-compliance to management.
    C. Power Resources, Inc., will have a qualified member of the 
health physics staff available at any of its facilities when 
equipment is being released from a radiologically-controlled area to 
an unrestricted area. If a qualified member of the health physics 
staff is unavailable, the equipment will not be released from the 
radiologically-controlled area.
    D. Notifications to the NRC when actions are completed.
    1. Power Resources Inc., will submit written notification to the 
Director, Division of Nuclear Materials Safety, U.S. Nuclear 
Regulatory Commission, Region IV, 1600 East Lamar Blvd., Arlington, 
Texas 76011-4511, at intervals not to exceed 12 months until the 
terms of this Confirmatory Order are completed, providing a status 
of each item in the Order.
    2. Power Resources Inc., will provide its basis for concluding 
that the terms of the Confirmatory Order have been satisfied, to the 
NRC, in writing to Director, Division of Nuclear Materials Safety, 
U.S. Nuclear Regulatory Commission, Region IV, 1600 East Lamar 
Blvd., Arlington, Texas 76011-4511.
    The NRC will review to confirm whether or not the terms of the 
Confirmatory Order have been satisfied.
    This Confirmatory Order is binding upon successors and assigns 
of PRI.
    The Regional Administrator, Region IV, may, in writing, relax or 
rescind any of the above conditions upon demonstration by PRI or its 
successors of good cause.

VI

    In accordance with 10 CFR 2.202 and 10 CFR 2.309, any person 
adversely affected by this Confirmatory Order, other than PRI, may 
request a hearing within 30 calendar days of the date of issuance of 
this Confirmatory 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, DC 20555, and include a statement of good cause for the 
extension.
    All documents filed in NRC adjudicatory proceedings, including a 
request for hearing, a petition for leave to intervene, any motion 
or other document filed in the proceeding prior to the submission of 
a request for hearing or petition to intervene, and documents filed 
by interested governmental entities participating under 10 CFR 
2.315(c), must be filed in accordance with the NRC's E-Filing rule 
(72 FR 49139; August 28, 2007, as amended at 77 FR 46562, August 3, 
2012). The E-Filing process requires participants to submit and 
serve all adjudicatory documents over the internet, or in some cases 
to mail copies on electronic storage media. Participants may not 
submit paper copies of their filings unless they seek an exemption 
in accordance with the procedures described below.
    To comply with the procedural requirements of E-Filing, at least 
10 days prior to the filing deadline, the participant should contact 
the Office of the Secretary by email at [email protected], or 
by telephone at (301) 415-1677, to (1) request a digital 
identification (ID) certificate, which allows the participant (or 
its counsel or representative) to digitally sign documents and 
access the E-Submittal server for any proceeding in which it is 
participating; and (2) advise the Secretary that the participant 
will be submitting a request or petition for hearing (even in 
instances in which the participant, or its counsel or 
representative, already holds an NRC-issued digital ID certificate). 
Based upon this information, the Secretary will establish an 
electronic docket for the hearing in this proceeding if the 
Secretary has not already established an electronic docket.
    Information about applying for a digital ID certificate is 
available on NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/getting-started.html. System requirements for accessing 
the E-Submittal server are detailed in NRC's ``Guidance for 
Electronic Submissions to the NRC, Revision 6.1,'' which is 
available on the agency's public Web site at http://www.nrc.gov/site-help/electronic-sub-ref-mat.html. Participants may attempt to 
use other software not listed on the Web site, but should note that 
the NRC's E-Filing system does not support unlisted software, and 
the NRC Electronic Filing Help Desk will not be able to offer 
assistance in using unlisted software.
    If a participant is electronically submitting a document to the 
NRC in accordance with the E-Filing rule, the participant must file 
the document using the NRC's online, Web-based submission form. In 
order to serve documents through the Electronic Information Exchange 
System (EIE), users will be required to install a Web browser plug-
in from the NRC Web site. Further information on the Web-based 
submission form, including the installation of the Web browser plug-
in, is available on the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html.
    Once a participant has obtained a digital ID certificate and a 
docket has been created, the participant can then submit a request 
for hearing or petition for leave to intervene. Submissions should 
be in Portable Document Format (PDF) in accordance with NRC guidance 
available on the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals.html. A filing is considered complete at the time 
the documents are submitted through the NRC's E-Filing system. To be 
timely, an electronic filing must be submitted to the E-Filing 
system no later than 11:59 p.m. Eastern Time on the due date. Upon 
receipt of a transmission, the E-Filing system time-stamps the 
document and sends the submitter an email notice confirming receipt 
of the document.
    The E-Filing system also distributes an email notice that 
provides access to the document to the NRC's Office of the General 
Counsel and any others who have advised the Office of the Secretary 
that they wish to participate in the proceeding, so that the filer 
need not serve the documents on those participants separately. 
Therefore, applicants and other participants (or their counsel or 
representative) must apply for and receive a

[[Page 71122]]

digital ID certificate before a hearing request or petition to 
intervene is filed so that they can obtain access to the document 
via the E-Filing system.
    A person filing electronically using the NRC's adjudicatory E-
Filing system may seek assistance by contacting the NRC Electronic 
Filing Help Desk through the NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/contact-us-eie.html, by email at 
[email protected], or by a toll-free call at (866) 672-7640. The 
NRC Electronic Filing Help Desk is available between 9 a.m. and 7 
p.m., Eastern Time, Monday through Friday, excluding government 
holidays.
    Participants who believe that they have a good cause for not 
submitting documents electronically must file an exemption request, 
in accordance with 10 CFR 2.302(g), with their initial paper filing 
stating why there is good cause for not filing electronically and 
requesting authorization to continue to submit documents in paper 
format. Such filings must be submitted by: (1) First class mail 
addressed to the Office of the Secretary of the Commission, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: 
Rulemaking and Adjudications Staff; or (2) courier, express mail, or 
expedited delivery service to the Office of the Secretary, Sixteenth 
Floor, One White Flint North, 11555 Rockville Pike, Rockville, 
Maryland 20852, Attention: Rulemaking and Adjudications Staff.
    Participants filing a document in this manner are responsible 
for serving the document on all other participants. Filing is 
considered complete by first-class mail as of the time of deposit in 
the mail, or by courier, express mail, or expedited delivery service 
upon depositing the document with the provider of the service. A 
presiding officer, having granted an exemption request from using E-
Filing, may require a participant or party to use E-Filing if the 
presiding officer subsequently determines that the reason for 
granting the exemption from use of E-Filing no longer exists.
    Documents submitted in adjudicatory proceedings will appear in 
the NRC's electronic hearing docket which is available to the public 
at http://ehd1.nrc.gov/ehd, unless excluded pursuant to an order of 
the Commission or the presiding officer. Participants are requested 
not to include personal privacy information, such as social security 
numbers, home addresses, or home phone numbers in their filings, 
unless an NRC regulation or other law requires submission of such 
information. With respect to copyrighted works, except for limited 
excerpts that serve the purpose of the adjudicatory filings and 
would constitute a Fair Use application, participants are requested 
not to include copyrighted materials in their submission.
    If a person (other than PRI) requests a hearing, that person 
shall set forth with particularity the manner in which his interest 
is adversely affected by this Confirmatory Order and shall address 
the criteria set forth in 10 CFR 2.309(d) and (f).
    If a hearing is requested by a person whose interest is 
adversely affected, the Commission will issue an order designating 
the time and place of any hearings. If a hearing is held, the issue 
to be considered at such hearing shall be whether this Confirmatory 
Order should be sustained.
    In the absence of any request for a hearing, or written approval 
of an extension of time in which to request a hearing, the 
provisions specified in Section V above shall be final 30 days from 
the date this Confirmatory Order without further order or 
proceedings. If an extension of time for requesting a hearing has 
been approved, the provisions specified in Section V shall be final 
when the extension expires if a hearing request has not been 
received.

    For the Nuclear Regulatory Commission.

    Dated this 30th day of September 2016.

Kriss M. Kennedy,

Regional Administrator, NRC Region IV.

[FR Doc. 2016-24872 Filed 10-13-16; 8:45 am]
 BILLING CODE 7590-01-P