~~ SANCTION ADMINISTRATIVE PECUNIAIRE (SAP)

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1 de Commission 80ret6 nucf6alre canadienne ADMINISTRATIVE MONETARY PENAL TY (AMP) ~~ NOTICE OF VIOLATION (Corporation) AVIS DE VIOLATION (Societe) Date of Notice /Date de l'avis: January 15, 2015 AMP Number I Numero de SAP: 2015-AMP-01 Viola~on committed by I Violation commise par : Babcock & Wilcox Canada Ltd. AMOUNTOF PENALTY/ MONT ANT DE LA SANCTION: $7, Due date/date d'echeance du paiement: February 14, 2015 Violation Failure to assist or give information requested by an inspector. In violation ofparagraph 48(f) ofthe Nuclear Safety and Control Act Relevant Facts I Faits pertinents I, Andre Regimbald, Director General ofthe Directorate ofnuclear Substance Regulation and Designated Officer authorized by the Canadian Nuclear Safety Commission (CNSC) to issue notices ofviolations, believe on reasonable grounds that Babcock & Wilcox Canada Ltd. committed the above violation. The relevant facts are: Babcock & Wilcox Canada Ltd. holds CNSC licence number authorizing the company to possess and use nuclear substances and prescribed equipment (radiation devices) for the purposes ofindustrial radiography. On October 7, 2014 the CNSC conducted an inspection ofindustrial radiography operations conducted by Babcock & Wilcox Canada Ltd. in Melville, Saskatchewan. During the inspection, the CNSC inspector identified non-compliance items related to radiation device maintenance by Babcock & Wilcox Canada Ltd. At the outset ofthe inspection, Babcock & Wilcox Canada Ltd. was given until October 28, 2014 to submit to the CNSC inspector the corrective actions to address the non-compliance items. On October 28, 2014 Babcock & Wilcox Canada Ltd. did not submit corrective actions as requested by the CNSC inspector on October 7, On November 5, November 14 and November 19, 2014, the CNSC inspector contacted the Radiation Safety Officer (RSO) and the NDE Manager at Babcock &Wilcox Canada Ltd. to e-docs# Page 1 of/de 6 C3Iiada

2 Canadian Nuclear Commission canadienne Safety Commission de s0ret6 nucl6aire ADMINISTRATIVE MONETARY PENAL TY (AMP) request a status update on the requested corrective actions. No corrective actions had yet been taken or planned. On November 27, 2014 Babcock &Wilcox Canada Ltd.'s RSO provided the CNSC inspector with a written response to the October 7, 2014 inspection report. The response indicated that Babcock & Wilcox Canada Ltd. management was unable to resolve the non-compliance items. On November 28, 2014 the CNSC inspector sent an to Babcock & Wilcox Canada Ltd.' s RSO expressing concerns that the corrective actions had not been addressed and that the CNSC was requesting a meeting with Babcock & Wilcox Canada Ltd. 's management to discuss urgent resolution ofthis mater. From November 28 to December 10, 2014 the CNSC inspector held several telephone and communications with Babcock & Wilcox Canada Ltd. requesting further information without success. On December 15, 2014 CNSC staff met with representatives ofbabcock & Wilcox Canada Ltd. to discuss the non-resolution ofthe October 7, 2014 non-compliance items. CNSC staff provided Babcock & Wilcox Canada Ltd. with the chronology ofrequests and responses as outlined above. Babcock & Wilcox Canada Ltd. was unable to provide a satisfactory response to the CNSC and CNSC staff concluded that little action had been taken by the licensee to address the noncompliance items. On December 15, 2014 the CNSC inspector issued Order #789 requiring Babcock & Wilcox Canada Ltd. to immediately cease using two oftheir radiation devices until the company address the October 7, 2014 non-compliance items to the satisfaction ofthe CNSC. Based on my review ofthis matter and a consideration ofthe 7 factors in section 5 ofthe Administrative Monetary Penalties Regulations, the amount ofthe penalty was determined by having regard to the following: 1. Compliance history: A review ofthe licensee's compliance history revealed that Babcock & Wilcox Canada Ltd.' s overall compliance with CNSC regulatory requirements has been satisfactory. 2. Intention or negligence: Babcock & Wilcox Canada Ltd. has demonstrated negligence in resolving the non-compliance items identified in the October 7, 2014 CNSC inspection. 3. Actual or potential harm: The delays in addressing the non-compliance items identified in the October 7, 2014 inspection did not result in any immediate harm from the radiation devices to either the workers or members ofthe public between the time ofthe initial inspection on October 7, 2014 and the issuance of Order #789 on December 15, Competitive or economic benefit: There does not appear to be any competitive or economic benefit as a result ofthe violation. 5. Efforts to mitigate or reverse effects: The violation did not result in effects requiring mitigation. 6. Assistance to Commission: Based on the documented chronology ofcommunications between Babcock & Wilcox Canada Ltd. and the CNSC inspector, evidence shows that the licensee was dismissive or unresponsive to repeated requests by the inspector for information pertaining to the noncompliance items identified during the October 7, CNSC inspection. e-docs# Page 2 of/de 6 Canada

3 I.&.I Canadian Nuclear Commission canadienne "'I"' Safety Commission de sorett) nucl6aire ADMINISTRATIVE MONETARY PENAL TY (AMP) 7. Attention ofcommission: The violation could not be brought to the attention of the CNSC as it was identified during follow up by the CNSC inspector on non-compliance items related to the October 7, 2014 inspection. e-docs# Page 3 of/de 6 Canada

4 Satety C&nadian Nuclear Commission canadienne Commission de s0ret6 nucl6aire ADMINISTRATIVE MONETARY PENALTY (AMP) Penalty Calculation I Calcul de la sanction: (See Administrative Monetary Penalties Regulations (Canadian Nuclear Safety Commission) SOR/ ) (Veuillez consulter le Reglement sur les sanctions administratives pecuniaires de la Commission canadienne de surete nucleaire, DORS/ ) (a) Category of Violation I Categorle de violation Category A/Categorie A 0 Category B/Categorie B D Category C/Categorie C 0 (b) Penalty Range I Bareme de sanction Category Minimum Maximum Maximum- Categorie Minimum A $1 000 $ $ B $1 000 $ $ (c) Determining Factors I Facteurs determinants c $1 000 $ $ Factors/Facteurs Scale of regulatory significance/ Assessed Echelle de!'importance sur le plan Score/Ponderation reolementaire evaluee 1. Compliance history I 0, +1, +2, +3, +4, +5 0 Antecedents en matiere de conformite 2. Intention or negligence I 0, +1, +2, +3, +4, Intention OU negligence 3. Actual or potential harm I 0, +1, +2, +3, +4, +5 0 Dommages reels OU potentiels 4. Competitive or economic benefit I 0, +1, +2, +3, +4, +5 0 Avantage economique ou concurrentiel 5. Efforts to mitigate or reverse effects/ -2, -1, 0, +1, +2, +3 0 Efforts pour attenuer ou neutraliser les effets 6. Assistance to Commission I -2, -1,0, +1, +2, Aide apportee a la Commission 7. Attention of Commission I -2, -1, 0, +1, +2, +3 0 Violation declaree a la Commission Total (t) [rounded to 2 decimal points/arrondi a 2 decimales pres]= 0.07 [difference between category maximum and minimum/ ecart entre le montant minimal et le montant maximal] = x $ 1000 [minimum for the category/montant minimal pour la categorie] = $7 930 < 1 >29 being the maximum value of regulatory significance I < 1 >29 etant la valeur maximale de 1'1mportance sur the plan reglementaire e-docsl Page 4 of/de 6

5 Canadian Nuclear Commission canadienne Safety Convnlsslon de s0ret6 nucl6alre ADMINISTRATIVE MONETARY PENALTY (AMP) To Request a Review I Pour presenter une demande de revision As a person subject to an Administrative Monetary Penalty, you have the right to request a review ofthe amount ofthe penalty or the facts ofthe v~ol.ation, or both. Your request must be made in writing indicating the reasons why you are requesting a review and providing supporting information. Ifyou choose to request a review you must do so within 30 days ofthe date ofthe notice in writing by contacting: Marc Leblanc Commission Secretary Canadian Nuclear Safety Commission 280 Slater Street Ottawa ON KIP 5S9 Facsimile: (613) Telephone: (613) En tant que personne faisant l'objet d'une sanction administrative pecuniaires, vous avez le droit de demander une revision du montant de la penalite ou des faits quanta la violation, OU des deux. Vous devez presenter votre demande par ecrit, y indiquer pourquoi V?US demandez une revision et inclure toute information a l'appui de votre demande. Si vous demandez une revision, vous devez le faire dans les 30 jours suivant la date de l'avis, par ecrit en communiquant avec : Marc Leblanc Secretaire de la Commission Commission canadienne de surete nucleaire 280, rue Slater Ottawa (Ontario) KIP 5S9 Telecopieur: Telephone: (613) Courriel: Payment I Paiement The manner in which this administrative monetary penalty may be paid is by sending a cheque to: Receiver General for Canada c/o Canadian Nuclear Safety Commission Finance Division P.O. Box 1046, Station "B" Ottawa, Ontario KIP 5S9 For other payment methods and further instructions, please refer to the attached "Notice ofpayment Due" Should you not pay the penalty nor exercise your right to a review. you will be considered to have committed the violation and will be liable to the penalty set out herein. Cette sanction administrative pecuniaires peut etre payees par cheque libelle au nom du: Receveur general du Canada a/s Commission canadienne de surete nucleaire Division des Finances C.P. 1046, Succursale B Ottawa (Ontario) KIP 5S9 D'autres methodes de paiement sont disponibles, comme un virement, un depot direct et un paiement par carte de credit. Pout de l'information sur ces, autres methodes de paiement, veuillez consulter le document Avis depaiement du ci-joint. Si vous ne payez pas la sanction et n'exercez pas votre droit de revision. on considerera gue vous avez commis la violation et vous serez passible de la sanction mentionnee aux presentes. e-00cstl Page 5 of/de 6

6 Canadian Nuclear Commission canadienne l+i Safety Commission de s0ret6 nuclealre ADMINISTRATIVE MONETARY PENALTY (AMP) Issued by/delivre par 2015 I 0 1 I 1 5 Andre Regimbald Designated Officer/Fonctionnaire designe Date Telephone/Telephone: (613) /Courriel: Andre. gc. ca Page 6 of/de 6 Canada

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