Dr. Mohamed El-Naggar; Order Prohibiting Involvement in NRC- Licensed Activities

[Federal Register Volume 64, Number 68 (Friday, April 9, 1999)]
[Notices]
[Pages 17425-17427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8870]


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NUCLEAR REGULATORY COMMISSION

[IA 98-059]


Dr. Mohamed El-Naggar; Order Prohibiting Involvement in NRC-
Licensed Activities

I

    Dr. Mohamed El-Naggar (Dr. El-Naggar) is the owner of Diversified 
Global Enterprise Company (DGE), neither an NRC licensee nor an 
Agreement State licensee. DGE purchased the physical assets of DAS 
Consult, Inc., (DAS or Licensee), including, in particular, DAS assets 
subject to an NRC license. DAS is the holder of Byproduct Material 
License No. 34-26551-01 issued by the Nuclear Regulatory Commission 
(NRC or Commission) pursuant to 10 CFR part 30. The license authorized 
possession and use of moisture density gauges containing byproduct 
material in accordance with the conditions specified therein.

II

    Between June 19 and 25, 1998, the NRC conducted an inspection of 
DAS's

[[Page 17426]]

licensed activities to determine if byproduct material was being used, 
stored, or transferred in accordance with NRC regulations. The 
inspection was initiated because DAS failed to pay its annual fee and 
attempts to contact the Licensee by telephone and mail were 
unsuccessful. The NRC inspector discovered that, in January 1997, the 
physical assets of DAS, including six moisture density gauges 
containing certain byproducts material, were sold to DGE. The gauges 
contained sufficient quantities of cesium-137 and americium-241 to 
require persons who possess these devices to hold a specific NRC 
license. No person may receive or possess byproduct material except as 
authorized by a specific or general license as required pursuant to 
Section 81 of the Atomic Energy Act of 1954, as amended, and 10 CFR 
30.3. Neither Dr. El-Naggar nor DGE had an NRC license.
    On June 29, 1998, the NRC Office of Investigations (OI) initiated 
an investigation to determine, among other things, whether DGE 
possessed six moisture density gauges containing byproduct material in 
willful violation of NRC requirements. Based on the evidence obtained 
by OI and during a predecisional enforcement conference with Dr. A. 
Abdulshafi, the owner of DAS, on January 5, 1999, the NRC staff 
concludes that DGE, through the conduct of Dr. El-Naggar, possessed 
byproduct material in deliberate violation of NRC requirements. Between 
January and May 1997, the gauges containing byproduct material remained 
at the original DAS location on Kenny Road, where they were tendered by 
Dr. A. Abdulshafi, and trained gauge users who had been authorized to 
use the devices under the DAS license. On or about June 1997, DGE moved 
the gauges to another location, and the business association between 
DGE and DAS ended. Dr. El-Naggar was repeatedly informed by one of his 
employees between May and June 1997 that DGE was required to have an 
NRC license to possess the gauges. However, Dr. El-Naggar did not 
submit an application for an NRC license. In June 1998, as a result of 
the NRC inspection at DAS, DAS retrieved the gauges from DGE and 
properly transferred them to a company authorized to possess and use 
them.
    Between December 1, 1998 and January 20, 1999, three attempts were 
made by the NRC staff to schedule a predecisional enforcement 
conference with Dr. El-Naggar. The NRC staff was unsuccessful in 
scheduling this conference with Dr. El-Naggar.

III

    Based on the above, it appears that Dr. El-Naggar, owner of DGE, 
deliberately violated Section 81 of the Atomic Energy Act of 1954, as 
amended, and 10 CFR 30.3. Specifically, the NRC has concluded that Dr. 
El-Naggar, knowingly possessed six Troxler moisture density gauges 
containing byproduct material without an NRC license. Dr. El-Naggar's 
conduct has raised serious doubt as to whether he can be relied upon to 
comply with NRC requirements. Consequently, in light of the nature of 
the violation, the length of time the noncompliance existed, and the 
deliberate nature of the violation, I lack the requisite reasonable 
assurance that licensed activities can be conducted in compliance with 
the Commission's requirements and that the health and safety of the 
public will be protected if Dr. El-Naggar were permitted to be involved 
in any NRC-licensed activities. Therefore, the public health, safety 
and interest require that Dr. El-Naggar be prohibited from any 
involvement in NRC-licensed activities for a period of one year from 
the effective date of this Order. Additionally, Dr. El-Naggar is 
required to notify the NRC of his subsequent employment in NRC-licensed 
activities for a one year period following the prohibition period.

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 30.3, and 10 CFR 150.20, It is 
hereby ordered that:
    1. Dr. El-Naggar is prohibited from engaging in NRC-licensed 
activities for one year from the effective date of this Order. 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 Dr. El-Naggar is involved in NRC-licensed activities on the 
effective date of this Order, he must immediately cease such 
activities, and inform the NRC of the name, address and telephone 
number of the licensee, and provide a copy of this Order to the 
licensee.
    3. For a period of one year after the one year period of 
prohibition has expired, Dr. El-Naggar 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 IV.1 above, provide notice to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 
of 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 such notification, Dr. El-Naggar shall include 
a statement of his commitment to compliance with regulatory 
requirements and the basis why the Commission should have confidence 
that he will not comply with applicable NRC requirements.
    The Director, OE, may, in writing, relax or rescind any of the 
above conditions upon demonstration by Dr. El-Naggar of good cause.

V

    In accordance with 10 CFR 2.202, Dr. El-Naggar 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. 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 Dr. El-Naggar 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: 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 Enforcement at the same address, to the Regional 
Administrator, NRC Region III, 801 Warrenville Road, Lisle, IL 60532, 
and to Dr. El-Naggar if the answer or hearing request is by a person 
other than Dr. El-Naggar. If a person other than Dr. El-Naggar 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 Dr. El-Naggar or a person whose 
interest is adversely affected, the Commission will issue an Order 
designating the time and

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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 effective and 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 31st day of March 1999.
Malcolm R. Knapp,
Deputy Executive Director for Regulatory Effectiveness.
[FR Doc. 99-8870 Filed 4-8-99; 8:45 am]
BILLING CODE 7590-01-M