On August 21, 1996, a Notice of Violation (NOV) and Proposed Imposition of Civil Penalty in the amount of $12,500 was issued to Nuclear Fuel Services, Inc. (NFS). This action is based on a Severity Level III problem associated with four violations. The first violation involved the failure to implement and maintain a control and management system for an incinerator used to handle uranium. The second violation involved the failure to institute adequate procedures for the safe operation of the incinerator and multiple example of failure to adhere to the procedures. The third violation involved the failure to identify the incinerator as safety-related which resulted in a failure to implement a preventative maintenance and surveillance program for components essential to safety. The fourth violation involved the failure to implement an adequate training program for personnel operating the incinerator. The application of the NRC Civil Penalty Assessment process would normally result in not assessing a civil penalty in this case. However, because these violations represent a significant regulatory concern, the NRC exercised discretion and assessed a base civil penalty in accordance with Sections VI.B.2 and VII.A.1 of the Enforcement Policy.