KTL Roudebush Testing, Kansas City, MO; Order Revoking License, 1905-1908 [05-477]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 70, Number 7 (Tuesday, January 11, 2005)]
[Notices]
[Pages 1905-1908]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-477]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 030-33765, License No. 24-26628-01, EA-04-178]


KTL Roudebush Testing, Kansas City, MO; Order Revoking License

I

    KTL Roudebush Testing (Licensee) is the holder of Byproduct 
Material License No. 24-26628-01 issued by the Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR parts 30 and 34. The 
license authorizes the possession and use of iridium-192 in sealed 
sources for industrial radiography. The license also authorizes the 
possession and use of cesium-137 and americium-241 in sealed sources to 
be used in portable gauges for measuring physical properties of 
materials. In addition, the license authorizes the possession of 
depleted uranium, as solid metal, for shielding in radiography 
equipment.
    Christopher V. Roudebush is the President and owner of KTL 
Roudebush Testing. The license identifies Mr. Roudebush as the 
Radiation Safety Officer (RSO). Mr. Roudebush also serves as a 
radiographer for the Licensee. The license was originally issued on 
November 20, 1995. License Amendment No. 4 was issued on January 16, 
2004, to change the name of the Licensee from PSI Inspection, Inc. to 
KTL Roudebush Testing. The license was amended in its entirety on 
February 5, 2004 (Amendment No. 5), and is due to expire on March 31, 
2011. The license was suspended by NRC Order on March 11, 2004 (EA-03-
0177) (69 FR 13336). That Order was made immediately effective.

II

    On March 11, 2004, the NRC issued an Order Suspending License 
(Effective Immediately) and Demand for Information to KTL Roudebush 
Testing after a routine inspection by the NRC staff and an 
investigation by the NRC Office of Investigations (OI) identified 
numerous apparent deliberate violations of the NRC's radiation safety 
requirements by Christopher V. Roudebush, the President, owner, and

[[Page 1906]]

Radiation Safety Officer of, and a radiographer for, KTL Roudebush 
Testing. The apparent violations were described in Inspection Report 
No. 030-33765/2003-001 (DNMS), OI Report No. 3-2003-009, and the Order 
Suspending License (Effective Immediately) issued on March 11, 2004. 
The Suspension Order required KTL Roudebush Testing to suspend its use 
of NRC-licensed material and to place the material in safe storage 
pending further deliberation by the NRC regarding the apparent 
violations. The apparent deliberate violations giving rise to the Order 
Suspending License were described therein and, in summary, included the 
following:
    1. On April 10, 2003, October 28 and 29, 2002, and on several 
occasions between October 2001 and January 2002, Mr. Roudebush 
deliberately conducted industrial radiography at locations other than a 
permanent radiographic installation (field locations or temporary job 
sites) without having an additional qualified individual present who 
could observe radiographic operations and was capable of providing 
immediate assistance to prevent unauthorized entry, as required by 10 
CFR 34.41.
    2. On April 10, 2003, and on October 28 and 29, 2002, Mr. Roudebush 
deliberately permitted individuals to act as a radiographer's assistant 
before these individuals had successfully completed the Licensee's 
training program for radiographer's assistants, as required by 10 CFR 
34.43(c) and Condition No. 26 of NRC License No. 24-26628-01.
    3. On October 28, 2002, Mr. Roudebush deliberately permitted an 
individual who was not wearing a direct-reading pocket dosimeter, an 
alarming ratemeter, and either a film badge or a thermoluminescent 
dosimeter, as required by 10 CFR 34.47(a), to act as a radiographer's 
assistant.
    4. As of April 12, 2003, Mr. Roudebush deliberately failed to 
conduct inspections and routine maintenance of Licensee radiographic 
exposure devices and associated equipment during the first quarter of 
Calendar Year 2003, an interval exceeding three months, as required by 
10 CFR 34.31(b).
    5. On April 8, 2003, Mr. Roudebush deliberately provided inaccurate 
and incomplete information to an NRC inspector about maintaining 
records of quarterly inspections of radiographic exposure devices, as 
required to be maintained in accordance with 10 CFR 34.73.
    6. On August 5, 2003, in response to a subpoena from the NRC, Mr. 
Roudebush deliberately provided inaccurate and incomplete information 
to a Special Agent of the NRC Office of Investigations when he stated 
that he had destroyed a computer described in a subpoena from the NRC. 
Mr. Roudebush deliberately failed to afford the Commission an 
opportunity to inspect records of quarterly maintenance and inspections 
of radiographic exposure devices that were required to be maintained in 
accordance with 10 CFR 34.73.
    7. On April 10, 2003, and between October 2001 and January 2002, 
Mr. Roudebush transported on public highways a SPEC Model 150 
radiographic exposure device (package), containing a nominal 142 curie 
iridium-192 sealed source, and he deliberately did not block and brace 
the package such that it could not change position during conditions 
normally incident to transportation, as required by 10 CFR 71.5(a) and 
49 CFR 177.842(d). Specifically, two radiographic exposure devices were 
transported in the back of a company truck and one of the exposure 
devices was not properly blocked or braced.
    8. On April 10, 2003, Mr. Roudebush deliberately transported a SPEC 
Model 150 radiographic exposure device, containing a nominal 142 curie 
iridium-192 sealed source, by highway without a shipping paper and the 
material was not excepted from shipping paper requirements, as required 
by 10 C.F.R. Sec.  71.5(a) and 49 CFR 177.817(a).
    9. On April 10, 2003, Mr. Roudebush deliberately transported a 
radiographic exposure device, containing a nominal 142 curie iridium-
192-sealed source, without its safety cover installed to protect the 
source assembly from water, mud, sand or other foreign matter, as 
required by 10 CFR 34.20(c)(3).

III

    The March 11, 2004, Order Suspending License also contained a 
Demand for Information issued pursuant to 10 CFR 2.204. The Demand for 
Information required the Licensee to provide in writing, under oath or 
affirmation, an explanation as to why, in light of the inspection and 
investigation findings, that License No. 24-26628-01 should not be 
revoked. The Demand for Information also provided that should the 
Licensee believe that the license should not be revoked, the Licensee 
must provide in a written response, under oath or affirmation, 
reasonable assurance that in the future all licensed activities will be 
conducted with appropriate management oversight to ensure all licensed 
activities will be performed in accordance with regulatory 
requirements. By letter dated March 17, 2004, the Licensee requested 
additional time to respond to the Demand for Information. The NRC 
granted the request for additional time on April 2, 2004. On June 3, 
2004, the Licensee provided the written response required by the Demand 
for Information and also requested a hearing on the Order Suspending 
License.
    On June 14, 2004, the Licensee withdrew the request for hearing 
upon the NRC granting the Licensee's request to meet with the NRC 
staff, and consequently the NRC staff extended the time for the 
Licensee to request a hearing on the Order Suspending License. 
Representatives of the Licensee met with the NRC staff on July 21, 
2004, in the NRC Region III Office in Lisle, Illinois.
    In the Licensee's undated \1\ written response to the Demand for 
Information and at the meeting with the NRC staff, Christopher V. 
Roudebush, the President, owner, and Radiation Safety Officer of KTL 
Roudebush Testing, stated that he made mistakes and he had lapses in 
judgment as a businessman; however, none of the violations were 
deliberate in nature. Mr. Roudebush stated that he planned to hire only 
experienced individuals in the future and he would no longer hire 
individuals from a temporary labor agency. According to Mr. Roudebush, 
he hired a second radiographer to be an additional Radiation Safety 
Officer in order to help with completion of NRC-required inspections 
and audits and maintain related records. (Note: On December 20, 2003, 
the Licensee submitted a license amendment request to the NRC, 
requesting an individual be added to the license as the Assistant 
Radiation Safety Officer. License Amendment No. 4 was issued on January 
16, 2004, and listed that individual as the Assistant Radiation Safety 
Officer.)
---------------------------------------------------------------------------

    \1\ Received by NRC on June 3, 2004.
---------------------------------------------------------------------------

    The NRC staff carefully considered the Licensee's response to the 
Demand for Information and the additional information provided during 
the meeting held on July 21, 2004. Notwithstanding the Licensee's 
arguments, the NRC concludes that the apparent deliberate violations 
specified in the Suspension Order occurred as stated. For example, Mr. 
Roudebush admitted in the response to the Demand for Information and at 
the July 21, 2004, meeting that he violated the NRC requirement to have 
two qualified individuals present during radiographic operations; 
however, he denied that the violation was deliberate. He explained

[[Page 1907]]

that he received his training and certification as a radiographer in 
the State of Texas and the regulations in the State of Texas required 
only one certified radiographer. He also denied during the meeting on 
July 21, 2004, that he had received a prior Notice of Violation 
associated with the ``two-man rule,'' 10 CFR 34.41(a). However, the NRC 
issued a Notice of Violation to the Licensee on January 18, 2000, 
associated with the ``two man rule,'' 10 CFR 34.41(a). The inspection 
report containing the violation (No. 030-33765/99-001(DNMS)) documents 
that Mr. Roudebush told an NRC inspector during the December 10, 1999, 
inspection that he was familiar with the NRC's ``two man rule,'' 10 CFR 
34.41(a). Therefore, the NRC staff concludes that the statements by Mr. 
Roudebush that he was not aware of the requirement to have two 
qualified individuals present at a temporary job site and he did not 
deliberately violate the provisions of 10 CFR 34.41(a), were not 
credible.
    Additionally, Mr. Roudebush provided a lengthy explanation 
regarding the apparent deliberate failure to provide the information 
requested by the NRC subpoena, the opportunity to inspect the records 
contained in the computer, and the destruction of that computer. Mr. 
Roudebush stated that an employee threw computer parts from a truck 
operated by Mr. Roudebush after Mr. Roudebush had received the subpoena 
from the Office of Investigations. Mr. Roudebush admitted that he was 
present when his employee threw away the computer parts and stated that 
he made no attempt to stop the employee from destroying the computer. 
Regardless of who may have actually destroyed the computer, Mr. 
Roudebush, as the Licensee's President, owner, and Radiation Safety 
Officer, was complicit in, and responsible for, deliberate violations 
of 10 CFR 30.9 and 10 CFR 30.52(b).
    The NRC staff carefully considered the Licensee's explanations 
provided in its response to the Demand for Information and at the July 
21, 2004, meeting regarding the other violations alleged in the 
Suspension Order. While Mr. Roudebush contends that his conduct 
reflected mistakes and lapses of judgment, the NRC concludes that the 
violations were deliberate and occurred as stated in the Order 
Suspending License.

IV

    In addition to the deliberate violations described in Section III 
which occurred within the NRC's jurisdiction, and upon which this Order 
is based, the investigation conducted by the NRC Office of 
Investigations determined that the following activities occurred in the 
State of Kansas, an NRC Agreement State. On February 17, and March 6, 
2003, and on several occasions between May and October 2002, the 
Licensee deliberately conducted radiography at temporary job sites and 
the radiographer was not accompanied by an additional qualified 
individual. On February 17, and March 6, 2003, the Licensee 
deliberately permitted individuals to act as a radiographer's 
assistants before they had successfully completed the Licensee's 
training program for a radiographer's assistant, and these individuals 
did not wear a direct-reading pocket dosimeter, an alarming ratemeter, 
and either a film badge or a thermoluminescent dosimeter while 
conducting radiography. Based on these findings, on March 12, 2004, the 
State of Kansas issued an Emergency Order of Suspension of License 
(Case No. 04-E-0071) to KTL Inspection (as named on the Order and 
License). The license in the State of Kansas expired on June 30, 2004, 
and summary judgment was entered without further action by the State of 
Kansas based on the expiration of the license.

V

    As described in Section III, the deliberate acts and omissions of 
Christopher V. Roudebush violated NRC requirements over an extended 
period of time. These violations jeopardized the public health and 
safety, and on that basis, represent a significant regulatory concern. 
The deliberate violations also demonstrate that Christopher V. 
Roudebush, as the President, owner, and Radiation Safety Officer of KTL 
Roudebush Testing, and a radiographer for the Licensee, is unable to 
comply with the Commission's requirements to protect the public health 
and safety. The corrective actions described by Mr. Roudebush (hiring 
an Assistant Radiation Safety Officer/radiographer, and stating he 
would not hire temporary workers in the future) are not sufficient to 
demonstrate otherwise. The deliberate violations demonstrate that the 
Commission is not able to rely upon the integrity of Mr. Roudebush. 
Such reliance is essential to assuring adequate protection of the 
public health and safety. Given the above matters and the actions of 
Mr. Roudebush as the President, owner, and Radiation Safety Officer for 
the Licensee, the Commission lacks the requisite reasonable assurance 
that the public health and safety is adequately protected by continuing 
activities under the existing license. If, at the time the license was 
issued, the NRC had known of the Licensees inability to control 
licensed activities in accordance with the Commission's requirements, 
or the questionable integrity of the Licensee's President and Radiation 
Safety Officer, the license would not have been issued. Therefore, I 
have determined that permitting this Licensee to conduct or resume 
activities under License No. 24-26628-01 would be contrary to the 
public health and safety and that this license should be revoked. I 
have also determined, pursuant to 10 CFR 2.202(a)(5), that the public 
health and safety requires the continued suspension of this license 
until the material in the Licensee's possession has been returned to 
the manufacturer or transferred to another person authorized to possess 
the material, and that this continued suspension must remain in effect 
pending license revocation.

VI

    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 30 and 34:
    A. It is hereby ordered, that:
    1. The Licensee shall transfer all NRC-licensed material acquired 
or possessed under the authority of License No. 24-26628-01 within 20 
days of the date of this Order, either by returning the material to the 
manufacturer or transferring it to another person authorized to possess 
that material;
    2. Any sources that have not been leak tested within six months 
prior to the transfer shall be leak tested by a person authorized to do 
so, prior to transfer of the source;
    3. The Licensee shall notify Mr. Marc L. Dapas, Director, Division 
of Nuclear Materials Safety, NRC Region III, Lisle, Illinois, by 
telephone (630-829-9800) at least five working days prior to the date 
the radioactive materials are to be transferred so that the NRC may, if 
it elects, observe the transfer of the material;
    4. The Licensee shall, within 5 days after transfer of the 
material, certify in writing, under oath or affirmation, to the 
Regional Administrator, NRC Region III, 2443 Warrenville Road, Suite 
210, Lisle, Illinois 60532-4532, that all material has been properly 
transferred and provide the Regional Administrator copies of transfer 
records required by 10 CFR 30.51; and
    5. The issuance of this Order does not otherwise alter the 
continued effectiveness of the Suspension Order.
    B. It is further ordered that:
    Following confirmation of the transfer of all NRC-licensed material 
currently

[[Page 1908]]

possessed, as discussed above, License No. 24-26628-01 is revoked.
    The Director of the Office of Enforcement or the Regional 
Administrator, Region III, may, in writing, at any time prior to final 
agency action sustaining the revocation of License No. 24-26628-01, 
relax or rescind any of the above provisions on demonstration by the 
Licensee, in writing and under oath or affirmation, of good cause.

VII

    In accordance with 10 CFR 2.202(b), the Licensee 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 set 
forth the matters of fact and law on which the Licensee 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: 
Rulemakings and Adjudications Staff, Washington, DC 20555. Copies of 
the hearing request also should be sent to the Director, Office of 
Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, to the Assistant General Counsel for Materials Litigation and 
Enforcement, Office of the General Counsel, at the same address, to the 
Regional Administrator, NRC Region III, 2443 Warrenville Road, Suite 
210, Lisle, IL 60532-4352, and to the Licensee if the hearing request 
is by a person other than the Licensee. Because of continuing 
disruptions in delivery of mail to United States Government offices, it 
is requested that answers and requests for hearing be transmitted to 
the Secretary of the Commission either by means of facsimile 
transmission to 301-415-1101 or by e-mail to hearingdocket@nrc.gov and 
also to the Assistant General Counsel either by means of facsimile 
transmission to 301-415-3725 or by e-mail to OGCMailCenter@nrc.gov. If 
a person other than the Licensee requests a hearing, that person shall 
set forth with particularity the manner in which the interest of the 
person is adversely affected by this Order and shall address the 
criteria set forth in 10 CFR 2.309.
    If a hearing is requested by the Licensee 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 VI 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 VI shall be final when the extension expires if a 
hearing request has not been received.

    Dated this 30th day of December, 2004.

    For the Nuclear Regulatory Commission.
Martin J. Virgilio,
Deputy Executive Director for Materials, Research and State Programs, 
Office of Executive Director for Operations.
[FR Doc. 05-477 Filed 1-10-05; 8:45 am]
BILLING CODE 7590-01-P