[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Notices]
[Pages 39985-39986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16998]
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NUCLEAR REGULATORY COMMISSION
[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
I.
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.
II.
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.
III.
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
agreement.
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
completed.
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
Regulation.
[FR Doc. 2010-16998 Filed 7-12-10; 8:45 am]
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