[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Pages 39985-39986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16998]



[NRC-2010-0178; Docket No. 50-228; License No. R-98]

In the Matter of Aerotest Operations, Inc. (Aerotest Radiography 
and Research Reactor); Order Approving Indirect Transfer of Facility 
Operating License and Conforming Amendment


    Aerotest Operations, Inc., (Aerotest) is the holder of Facility 
Operating License No. R-98 which authorizes the possession, use and 
operation of the Aerotest Radiography and Research Reactor (ARRR) 
located in San Ramon, California, under the provisions of 10 CFR 
50.21(c) for research and development purposes. Aerotest is a wholly 
owned subsidiary of OEA Aerospace, Inc., which is wholly owned by OEA, 
Inc. OEA, Inc., was purchased by Autoliv ASP, Inc., (Autoliv) on May 9, 
2000. Autoliv is owned by Autoliv, Inc., a Delaware corporation with a 
Board of Directors and Executive Officers the majority of whom are non-
U.S. citizens. Pursuant to the May 9, 2000, transfer, and without the 
consent of the U. S. Nuclear Regulatory Commission (NRC), Aerotest 
became a subsidiary of Autoliv and Autoliv, Inc.


    By application dated January 19, 2010, as supplemented by letters 
dated February 2, March 23, April 1, and April 19, 2010, (collectively, 
the application), Aerotest, X-Ray Industries, Inc., (X-Ray), and 
Autoliv requested that the NRC, pursuant to of Title 10 of the Code of 
Federal Regulations (10 CFR) Section 50.80, consent to the proposed 
indirect transfer of control of Aerotest's license to possess, use, and 
operate the ARRR, from its current owner, Autoliv to X-Ray. Autoliv, 
the parent company of OEA, Inc., (which is the parent company of 
Aerotest) and X-Ray have entered into a Letter of Intent for X-Ray to 
acquire all of the stock of Aerotest. X-Ray has formed a subsidiary 
single member LLC, Aerotest Holdings LLC, to be the intermediate parent 
of Aerotest and a subsidiary of X-Ray. There will be no direct transfer 
of the license. No changes to ARRR's location, facilities, equipment, 
operating procedures, operating organization, or personnel will be made 
in connection with the indirect transfer of control of the license.
    The application also requested approval of a conforming amendment 
to reflect the proposed transfer of ownership of Aerotest, from OEA, 
Inc., to X-Ray. After completion of the transfer, X-Ray would be the 
indirect owner of Aerotest, which operates the ARRR.
    Notice of request for approval and an opportunity for hearing was 
published in the Federal Register on May 14, 2010; 75 FR 27368. No 
hearing requests or written comments were received.
    Under 10 CFR 50.80, no license or any right thereunder, shall be 
transferred, directly or indirectly, through transfer of control of the 
license, unless the Commission gives its consent in writing. Upon 
review of the information submitted in the application and other 
information before the Commission, the NRC staff has determined that 
the indirect license transfer of Facility Operating License R-98, as 
described above, is otherwise consistent with the applicable provisions 
of law, regulations, and orders issued by the NRC, pursuant thereto, 
subject to the conditions set forth below. The NRC staff further finds 
that the application for the proposed conforming license amendment 
complies with the standards and requirements of the Atomic Energy Act 
of 1954, as amended (the Act), and the Commission's rules and 
regulations set forth in 10 CFR Chapter I; the facility will operate in 
conformity with the application, the provisions of the Act and the 
rules and regulations of the Commission; there is reasonable assurance 
that the activities authorized by the proposed license amendment can be 
conducted without endangering the health and safety of the public and 
that such activities will be conducted in compliance with the 
Commission's regulations; the issuance of the proposed license 
amendment will not be inimical to the common defense and security or to 
the health and safety of the public; and the issuance of the proposed 
amendment will be in accordance with 10 CFR Part 51 of the Commission's 
regulations and all applicable requirements have been satisfied. The 
findings set forth above are supported by a safety evaluation dated 
July 7, 2010.


    Accordingly, pursuant to Sections 161b, 161i, 161o, and 184 of the 
Atomic Energy Act of 1954, as amended (the Act), 42 U.S.C. 2201(b), 
2201(i), 2201(o), and 2234; and 10 CFR 50.80, it is hereby ordered that 
the application regarding the proposed indirect license transfer 
described above related to the proposed transaction, is approved, 
subject to the following conditions:

    A. By no later than the time the proposed transaction and 
indirect license transfer occur, $2 million in decommissioning trust 
funds will be deposited in a Decommissioning Trust established and 
maintained by Aerotest Operations, Inc. The funds will be segregated 
from other assets of Aerotest Operations, Inc., and will be outside 
of the administrative control of Aerotest Operations, Inc.
    B. No later than the date of the transaction, the licensee will 
provide to the Director of the Office of Nuclear Reactor Regulation, 
a copy of the letter of credit for $300,000 in a form acceptable to 
the NRC.
    C. X-Ray Industries, Inc., shall enter into an $850,000 support 
agreement with Aerotest Operations, Inc., no later than the time the 
proposed transaction and indirect license transfer occur. Aerotest 
Operations, Inc., shall take no action to cause X-Ray Industries, 
Inc., or its successors and assigns, to void, cancel, or modify the 
support agreement or cause it to fail to perform, or impair its 
performance under the support agreement, without the prior written 
consent of the NRC. The support agreement may not be amended or 
modified without 30 days prior written notice to the Director of the 
Office of Nuclear Reactor Regulation or his designee. An executed 
copy of the support agreement shall be submitted to the NRC no later 
than 30 days after the completion of the proposed transaction and 
the indirect license transfer. Aerotest Operations, Inc., shall 
inform the NRC in writing anytime it draws upon the support 

    It is further ordered that consistent with 10 CFR 2.1315(b), the 
conforming license amendment, reflecting only changes related to the 
subject indirect transfer, is approved. The amendment shall be issued 
and made effective at the time the proposed indirect transfer action is 
    It is further ordered that after receipt of all required regulatory 
approvals of the proposed indirect transfer action, Aerotest shall 
inform the Director of the Division of Policy and Rulemaking in

[[Page 39986]]

writing of such receipt no later than 7 business days prior to the date 
of the closing of the indirect transfer. Should the proposed indirect 
transfer not be completed by September 13, 2010, this Order shall 
become null and void, provided, however, upon written application and 
good cause shown, such date may be extended by order.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the application 
dated January 19, 2010, (Agencywide Documents Access and Management 
System (ADAMS) Accession No. ML100490068), as supplemented by letters 
dated February 2, March 23, April 1, and April 19, 2010, (ADAMS 
Accession No. ML100880295, ML100880338, ML100980153, and ML101120070, 
respectively), and the safety evaluation dated July 7, 2010, which are 
available for public inspection at the Commission's Public Document 
Room (PDR), located at One White Flint North, Public File Area 01 F21, 
11555 Rockville Pike (first floor), Rockville, Maryland, and accessible 
electronically from the ADAMS Public Electronic Reading Room on the 
Internet at the NRC Web site, http://www.nrc.gov/reading-rm/adams.html. 
Persons who do not have access to ADAMS or who encounter problems in 
accessing the documents located in ADAMS, should contact the NRC PDR 
reference staff by telephone at 1-800-397-4209, or 301-415-4737, or by 
e-mail to [email protected].

    Dated at Rockville, Maryland this 6th day of July, 2010.

    For The Nuclear Regulatory Commission.
Timothy J. McGinty,
Director, Division of Policy and Rulemaking, Office of Nuclear Reactor 
[FR Doc. 2010-16998 Filed 7-12-10; 8:45 am]