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U.S. NUCLEAR REGULATORY COMMISSION

Office of Public Affairs, Region IV
611 Ryan Plaza Drive, Suite 400, Arlington TX 76011
www.nrc.gov


No. IV-04-042   October 14, 2004
CONTACT: Victor Dricks
Phone: 817-860-8128
E-mail: opa4@nrc.gov

NRC PROPOSES $3,000 FINE
AGAINST INTEGRATED PRODUCTION SERVICES, INC.
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The Nuclear Regulatory Commission staff has proposed a $3,000 fine against Integrated Production Services, Inc., of Broussard, La., for a willful violation of NRC radiation safety requirements.

The company is licensed by the State of Louisiana to use well-logging devices with sealed radioactive material to obtain information about underground rock formations and the likely amounts of gas and oil present. However, in May 2001, the NRC notified the State of Louisiana’s licensees that they were be subject to NRC regulatory requirements when operating in offshore waters.

During an NRC inspection and investigation completed on August 9, 2004, the NRC staff determined that the company had conducted well-logging activities in offshore waters in September 2003, and transported radioactive byproduct material into offshore waters on other occasions without first obtaining an NRC license.

The NRC also determined that the violation was willful, as the company’s representative had attended a May 10, 2001, NRC-sponsored meeting in Lafayette, La., where the requirements were explained.

Although the company maintains that there was no intent to violate federal law, “the NRC continues to believe that willfulness was associated with this violation,” the NRC’s Region IV Administrator Bruce S. Mallett said in a letter to the company. “IPS sent a representative to the (May 10, 2001) meeting and had the overall responsibility to assure that the messages conveyed by NRC at this meeting were acted upon.” Mallett also noted that the violation occurred after applying for, but before receiving, an NRC license to operate in offshore waters.

The company’s corrective actions include employment of a full-time radiation safety officer, actions to assure that company managers are aware of meetings with regulatory agencies and any required actions, monthly review of employee training plans, and meetings with employees to emphasize the importance of compliance.

The company is required to provide a written response to the proposed violation within 30 days.



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