Randall G. Falvey; Order Prohibiting Involvement in NRC-Licensed Activities

NUCLEAR REGULATORY COMMISSION

[IA 99-049]

Randall G. Falvey; Order Prohibiting Involvement in NRC-Licensed

Activities

I

Randall G. Falvey was employed from January 3, 1994 to October 30,

1998, as the training manager for the Wackenhut Corporation, the

security contractor of the Wisconsin Public Service Corporation

(Licensee). The Licensee holds license No. DPR-43 issued by the Nuclear

Regulatory Commission (NRC or Commission) pursuant to 10 CFR Part 50 on

June 16, 1974. The license authorizes the operation of the Kewaunee

Nuclear Power Plant (facility) in accordance with the conditions

specified therein. The facility is located on the Licensee's site near

Green Bay, Wisconsin.

II

From December 21, 1998 to June 21, 1999, an investigation of

licensed activities was conducted by the NRC Office of Investigations

(OI) in response to information provided to NRC Region III by the

Licensee on October 14, 1998. The Licensee reported that information

had been received which indicated the annual test firing of shotguns

used by the security force at the Kewaunee Nuclear Power Plant was not

performed when due. The Licensee conducted an investigation and

determined that Mr. Randall G. Falvey, the training manager for the

Wackenhut Corporation, was assigned the responsibility for ensuring

that each firearm at this site, including shotguns, was test fired

annually. The investigation by the Licensee determined that Mr. Falvey

had not ensured that 11 shotguns during 1997 and nine shotguns during

1998 were tested. The investigation by the Licensee also established

that Mr. Falvey falsified the records of those tests in order to show

that the tests had been conducted. The Licensee also reported that two

shotguns which Mr. Falvey had not tested and for which he had falsified

test records, failed to properly cycle during the test firing following

the identification of this issue.

The OI investigation also determined that during the Licensee's

investigation of this matter, Mr. Falvey provided false information

about the test firings to the Licensee's Security Director for the

Kewaunee Nuclear Power Plant. In a written statement to the Security

Director, Mr. Falvey wrote that he had completed the test firings on

the shotguns. However, review of Kewaunee Plant security access records

during the licensee's investigation for May 1997 and May and June 1998,

on the dates that Mr. Falvey indicated that the shotguns were tested,

showed both that Mr. Falvey had, in some instances, not entered areas

where shotguns were stored and, in other instances, that Mr. Falvey had

not stayed in an area long enough to retrieve a shotgun for testing and

replace it with another. Security personnel were interviewed and none

could recall retrieving or firing a shotgun at Mr. Falvey's request.

Furthermore, Mr. Falvey could not provide the name of any individual

who may have retrieved or test fired a shotgun at the direction of Mr.

Falvey. Other records indicated that none of these firearms were taken

to the firing range or cleaned after test firing.

Condition No. 2.C.(4) of the NRC operating license for the Kewaunee

Nuclear Power Plant requires the Licensee to maintain in effect and

fully implement all provisions of the Commission-approved Kewaunee

Nuclear Power Plant Security Manual and the Licensee's Security

Implementing Procedure (SIP) 30.02-10, ``Testing, Inspection, and

Maintenance of Security Equipment.'' The annual testing of site-

assigned weapons,

[[Page 58457]]

including shotguns, and the creation and maintenance of records of

those tests are required by the NRC-approved Kewaunee Nuclear Power

Plant Security Manual and the procedures implementing that manual. 10

CFR 50.9(a), ``Completeness and Accuracy of Information,'' provides, in

part, that information required by a condition of a Commission license

to be maintained by a licensee must be complete and accurate in all

material respects. 10 CFR 50.5(a)(2), ``Deliberate Misconduct,''

provides in part that a contractor employee of a Commission licensee

may not deliberately submit to a licensee or a licensee's contractor

information that the person submitting the information knows to be

incomplete or inaccurate in some respect material to the NRC. The

records of the shotgun tests are material to the NRC because each

record helps to demonstrate the Licensee's compliance with the

requirements of the NRC-approved Kewaunee Nuclear Power Plant Security

Manual. Based on the Licensee's and OI's investigations, it appears

that Randall G. Falvey deliberately provided information to the

Licensee that he knew to be incomplete or inaccurate in some respect

material to the NRC, in violation of 10 CFR 50.5. In particular, on

October 12, 1998, Mr. Falvey created false records indicating that a

number of shotguns had been tested during May 1997 and May--June 1998,

and on October 14, 1998, Mr. Falvey told the Licensee's Security

Director that the shotguns had been tested as required.

The NRC must be able to rely on the Licensee and its employees to

comply with NRC requirements, including the requirements to provide

information and maintain records that are complete and accurate in all

material respects and to refrain from deliberate misconduct. The

actions of Randall G. Falvey in causing the Licensee to violate 10 CFR

50.9 and his violation of 10 CFR 50.5 have raised serious doubt as to

whether Mr. Falvey can be relied upon to comply with NRC requirements

and to provide complete and accurate information to NRC licensees.

Consequently, 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 Randall G. Falvey were permitted at this time to

be involved in NRC-licensed activities. Therefore, the public health,

safety and interest require that Randall G. Falvey be prohibited from

any involvement in NRC-licensed activities for a period of three years

from the date of this Order. Additionally, Randall G. Falvey is

required to notify the NRC of his first employment in NRC-licensed

activities for the three years following the prohibition period.

IV

Accordingly, pursuant to sections 103, 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 50.5, and 10 CFR 150.20, It is

hereby ordered that:

1. Randall G. Falvey is prohibited for three years from the date of

this Order from engaging in NRC-licensed activities. 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 Randall G. Falvey is currently involved with a licensee in

NRC-licensed activities, he must cease those activities, and inform the

NRC of the name, address and telephone number of the employer, and

provide a copy of this order to the employer.

3. For a period of three years after the three year period of

prohibition has expired, Randall G. Falvey 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 NRC-licensed activities. In

the first notification Randall G. Falvey shall include a statement of

his commitment to compliance with regulatory requirements and the basis

why the Commission should have confidence that he will now comply with

applicable NRC requirements.

The Director, Office of Enforcement, may, in writing, relax or

rescind any of the above conditions upon demonstration by Randall G.

Falvey of good cause.

V

In accordance with 10 CFR 2.202, Randall G. Falvey 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 Randall G. Falvey 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: Rulemaking 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 Assistant General Counsel for Materials Litigation and

Enforcement at the same address, to the Regional Administrator, NRC

Region III, 801 Warrenville Road, Lisle, IL 60532-4351, and to Randall

G. Falvey if the answer or hearing request is by a person other than

Mr. Falvey. If a person other than Randall G. Falvey 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 Randall G. Falvey 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 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 this 19th day of October 1999 Rockville, Maryland.

Frank J. Miraglia, Jr.,

Deputy Executive Director for Reactor Programs.

[FR Doc. 99-28414 Filed 10-28-99; 8:45 am]

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