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	CONTACT:	Diane Screnci (610)337-5330/ e-mail: dps@nrc.gov Neil A. Sheehan (610)337-5331/e-mail: nas@nrc.gov

I-97-57

May 19, 1997

The Nuclear Regulatory Commission has revoked the radioactive materials license of Capital Engineering Services Inc. of Dover, Delaware, for failing to pay required licensing fees and continuing to use radioactive material after its license was suspended.

The order issued by NRC also bars David F. Johns, Capital's president and radiation safety officer, from engaging in NRC-licensed activities for three years.

During this period, Johns also must inform any prospective employer performing NRC-licensed work of the order. And following the suspension period, Johns is required to notify the NRC before taking part in activities licensed by the agency.

In September 1993, Capital Engineering was issued an NRC license authorizing it to possess and use moisture\density gauges containing sealed radioactive sources. The gauges are used for various industrial and construction purposes, such as measuring moisture levels in soil. The license was due to expire in September 1998.

But in February 1996, the license was suspended by the NRC after the company failed to pay required fees. In May 1996, NRC granted a request by Capital Engineering to pay the delinquent fees in 12 monthly installments, and extended the effective date of the order to March 15, 1997. At the same time, the NRC said that its suspension order would immediately become effective if the company failed to make the required payments on its licensing fee.

The first installment payment was due on June 15, 1996 but was not made. Consequently, Capital Engineering's license was suspended the following day. Nevertheless, the firm continued to use the gauges.

Based on the findings of an NRC inspection and an investigation, the NRC has concluded Capital Engineering committed the following violations: 1) deliberately used licensed material on numerous occasions despite a suspended license; 2) failed to maintain dose records for employees who used gauges; and 3) failed to test sealed sources for leakage and/or contamination.

Johns must submit in writing an answer to the order, and may request a hearing, within 20 days.