[Federal Register Volume 82, Number 46 (Friday, March 10, 2017)]
[Notices]
[Pages 13366-13369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04756]
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NUCLEAR REGULATORY COMMISSION
[Docket No. 50-228; License No. R-98; EA-17-002; NRC-2012-0286]
In the Matter of Aerotest Operations, Inc.; Aerotest Radiography
and Research Reactor; Order Approving Indirect Transfer of Facility
Operating License and Conforming Amendment
AGENCY: Nuclear Regulatory Commission.
ACTION: Indirect transfer of license; order.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an
order approving an application filed by Aerotest Operations, Inc.
(Aerotest) and Nuclear Labyrinth LLC (Nuclear Labyrinth) on May 30,
2012. The application sought NRC approval of the indirect transfer of
Facility Operating License No. R-98 for the Aerotest Radiography and
Research Reactor (ARRR), currently held by Aerotest, to Nuclear
Labyrinth. The NRC's approval of the indirect license transfer is
subject to certain conditions, which are described in the order. The
order also approves an amendment to the license for administrative
purposes to reflect the indirect license transfer. The order is
effective upon issuance.
DATES: The order was issued on February 28, 2017, and is effective for
one year.
ADDRESSES: Please refer to Docket ID NRC-2012-0286 when contacting the
NRC about the availability of information regarding this document. You
may obtain publicly-available information related to this document
using any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2012-0286. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS,
please contact the NRC's Public Document Room (PDR) reference staff at
1-800-397-4209, 301-415-4737, or by email to [email protected]. For
the convenience of the reader, the ADAMS accession numbers for
documents related to this action are provided in a table in the
``Availability of Documents'' section of this document.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room OWFN-01F21, One White Flint North,
11555 Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Edward Helvenston, Office of Nuclear
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC
20555-0001; telephone: 301-415-4067; email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Order
The text of the order is attached.
II. Availability of Documents
Documents related to this action, including the indirect license
transfer application and other supporting documentation, are available
to interested persons as indicated.
[[Page 13367]]
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Document ADAMS accession No(s).
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Aerotest Operations, Inc. and Nuclear ML12152A233, ML12180A384
Labyrinth LLC, ``Application for Approval
of Indirect Transfer of Control of
License,'' May 30, 2012.
U.S. Nuclear Regulatory Commission, ML121740317, ML121740343
``Request to Aerotest Operations, Inc.
and Nuclear Labyrinth LLC to Supplement
the License Transfer Application,'' July
5, 2012.
Aerotest Operations, Inc. and Nuclear ML122021201
Labyrinth LLC, ``Response to Request to
Aerotest Operations, Inc. and Nuclear
Labyrinth LLC to Supplement the License
Transfer Application (TAC No. ME8811),''
July 19, 2012.
U.S. Nuclear Regulatory Commission, ML12213A486
``Aerotest Operations, Inc.--Acceptance
of Requested License Transfer Application
(TAC No. ME8811),'' August 14, 2012.
U.S. Nuclear Regulatory Commission, ML12242A460, ML12242A479
``Aerotest Operations, Inc., and Nuclear
Labyrinth LLC--Request for Additional
Information Re: Application for Approval
of Indirect Transfer of Control of
License of Aerotest Radiography and
Research Reactor Pursuant to 10 CFR 50.80
(TAC No. ME8811),'' September 14, 2012.
Aerotest Operations, Inc. and Nuclear ML12291A508
Labyrinth LLC, ``Response to Request for
Additional Information Re: Application
for Approval of Indirect Transfer of
Control of License of Aerotest
Radiography and Research Reactor Pursuant
to 10 CFR 50.80 (TAC No. ME8811),''
October 15, 2012.
U.S. Nuclear Regulatory Commission, ML12339A181, ML12339A189
``Aerotest Operations, Inc., and Nuclear
Labyrinth LLC--Request for Additional
Information Re: Application for Approval
of Indirect Transfer of Control of
License of Aerotest Radiography and
Research Reactor Pursuant to 10 CFR 50.80
(TAC No. ME8811),'' December 10, 2012.
Aerotest Operations, Inc. and Nuclear ML13015A395
Labyrinth LLC, ``Response to Request for
Additional Information Re: Application
for Approval of Indirect Transfer of
Control of License of Aerotest
Radiography and Research Reactor Pursuant
to 10 CFR 50.80 (TAC No. ME8811),''
January 10, 2013.
U.S. Nuclear Regulatory Commission, ML13018A003
``Summary of December 19, 2012, Meeting
with Aerotest Operations, Inc., and
Nuclear Labyrinth LLC, on the Request for
Additional Information on the Proposed
Indirect License Transfer Application of
the Aerotest Radiography and Research
Reactor,'' January 18, 2013.
U.S. Nuclear Regulatory Commission, ML13120A598, ML13129A001,
``Denial of License Renewal, Denial of ML13158A164
License Transfer, and Issuance of Order
to Modify License No. R-98 to Prohibit
Operation of the Aerotest Radiography and
Research Reactor, Facility Operating
License No. R-98 (TAC Nos. ME8811 and
MC9596),'' July 24, 2013.
U.S. Nuclear Regulatory Commission, ML14100A094
Memorandum and Order CLI-14-05, April 10,
2014.
U.S. Nuclear Regulatory Commission, ML14248A614
Certification of Record to Commission
(LBP-14-10), September 5, 2014.
U.S. Nuclear Regulatory Commission, ML15357A201
Memorandum and Order CLI-15-26, December
23, 2015.
U.S. Nuclear Regulatory Commission, ML16020A546
``Aerotest Operations Inc. and Nuclear
Labyrinth LLC Request for Additional
Information Re: Opportunity to Supplement
2012 License Transfer Application (TAC
No. MF7221),'' January 21, 2016.
Aerotest Operations, Inc. and Nuclear ML16117A259
Labyrinth LLC, ``Response to Request for
Additional Information Re: Opportunity to
Supplement 2012 License Transfer
Application (TAC No. MF7221),'' April 21,
2016.
Aerotest Operations, Inc. and Nuclear ML16176A221
Labyrinth LLC, ``Request for Proprietary
Treatment for Supplemental Response to
Request for Additional Information Re:
Opportunity to Supplement 2012 License
Transfer Application (TAC No. MF7221),''
June 16, 2016.
U.S. Nuclear Regulatory Commission, ML16182A397
``Aerotest Operations, Inc. and Nuclear
Labyrinth LLC Request for Additional
Information Re: Supplemented 2012
Application for Approval of Indirect
Transfer of Control of License of
Aerotest Radiography and Research Reactor
(TAC No. MF7221),'' July 20, 2016.
Aerotest Operations, Inc. and Nuclear ML16245A230
Labyrinth LLC, ``Response to Request for
Additional Information Re: Opportunity to
Supplement 2012 License Transfer
Application (TAC No. MF7221),'' August
22, 2016.
U.S. Nuclear Regulatory Commission, ML16214A125, ML16214A121
``Aerotest Operations, Inc., Notice of
Consideration of Approval of Application
Regarding Proposed Indirect Transfer and
Conforming Amendments, Opportunity for a
Hearing, and Order Imposing Procedures
for Access to Sensitive Unclassified Non-
Safeguards Information,'' September 8,
2016, published in the Federal Register
on September 23, 2016 (81 FR 65677).
Aerotest Operations, Inc. and Nuclear ML16294A250
Labyrinth LLC, ``Response to Request for
Additional Information Re: Opportunity to
Supplement 2012 License Transfer
Application (TAC No. MF7221),'' October
10, 2016.
Aerotest Operations, Inc. and Nuclear ML16294A549
Labyrinth LLC, Electronic mail providing
clarification on license transfer
proposed technical specifications,
October 19, 2016.
Aerotest Operations, Inc. and Nuclear ML16312A345
Labyrinth LLC, Electronic mail providing
clarification on non-proprietary
treatment of certain financial
information, and a correction to license
transfer proposed technical
specifications, November 2, 2016.
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[[Page 13368]]
Dated at Rockville, Maryland, this 28th day of February 2017.
For the Nuclear Regulatory Commission.
Spyros A. Traiforos,
Project Manager, Research and Test Reactors Licensing Branch, Division
of Policy and Rulemaking, Office of Nuclear Reactor Regulation.
ATTACHMENT--Order Approving Indirect Transfer of Facility Operating
License and Conforming Amendment
In the Matter of Aerotest Operations, Inc.; Aerotest Radiography and
Research Reactor; [Docket No. 50-228; License No. R-98; EA-17-002; NRC-
2012-0286] (EFFECTIVE UPON ISSUANCE)
I.
Aerotest Operations, Inc. (Aerotest) is the holder of Facility
Operating License No. R-98 for the Aerotest Radiography and Research
Reactor (ARRR), located in San Ramon, Contra Costa County,
California. Aerotest is a wholly owned subsidiary of OEA Aerospace,
Inc., a wholly owned subsidiary of OEA, Inc., which, in turn, is a
wholly owned subsidiary of Autoliv ASP, Inc. (Autoliv). The ultimate
owner is Autoliv, Inc.
II.
By application dated May 30, 2012, as supplemented by letters
dated July 19, 2012; October 15, 2012; January 10, 2013; April 21,
2016; June 16, 2016; August 22, 2016; and October 10, 2016, Aerotest
and Nuclear Labyrinth LLC (Nuclear Labyrinth) (collectively, ``the
applicants'') requested U.S. Nuclear Regulatory Commission (NRC)
approval, pursuant to Title 10 of the Code of Federal Regulations
(10 CFR), Section 50.80 (10 CFR 50.80), of the indirect transfer of
control of the license for the ARRR. The indirect transfer of
control would involve the transfer of ownership of Aerotest from OEA
Aerospace, Inc. to Nuclear Labyrinth, and would result from the
acquisition of Aerotest by Nuclear Labyrinth through a stock
transfer. Nuclear Labyrinth would indirectly own 100 percent of the
ARRR through its ownership of Aerotest. There would be no direct
transfer of the license. Aerotest would continue to own and operate
the facility and hold the license. Although the license would be
amended for administrative purposes to reflect the transfer, no
physical changes to the ARRR facility or operational changes were
proposed in the application. Except for the installation of the
Chief Executive Officer and sole owner of Nuclear Labyrinth, Dr.
David Slaughter, as president of Aerotest, no management or
organizational changes were proposed.
By the application dated May 30, 2012, as supplemented by
letters dated July 19, 2012, October 15, 2012, and January 10, 2013,
the applicants originally requested NRC consent for the subject
indirect license transfer. By letter dated July 24, 2013, the NRC
staff denied the applicants' original indirect license transfer
application on the grounds that the applicants had failed to satisfy
the NRC's financial qualifications requirements and that the
applicants had not shown that there would be sufficient funds to
cover the annual cost of fuel storage until the U.S. Department of
Energy accepts the fuel once the facility permanently ceases
operations. The applicants filed a joint demand for a hearing on the
denial and, on August 12, 2014, a hearing was conducted, at which
the applicants presented new information, relevant to the indirect
license transfer application, which had not previously been provided
to the NRC staff. Based on the information presented by the
applicants and the NRC staff at the hearing, the Commission issued
an order, dated December 23, 2015, remanding the license transfer
application to the NRC staff for further consideration.
Subsequently, the applicants further supplemented the application by
letters dated April 21, 2016, June 16, 2016, August 22, 2016, and
October 10, 2016.
A notice entitled ``Aerotest Operations, Inc.; Aerotest
Radiography and Research Reactor; Consideration of Approval of
Indirect License Transfer and Conforming Amendment'' was published
in the Federal Register on September 23, 2016 (81 FR 65677). No
comments or hearing requests 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 NRC gives its consent in writing. Upon
review of the information in the application, as supplemented, and
other information before the Commission, the NRC staff has
determined that the indirect transfer of Facility Operating License
No. R-98, as described above, is 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 has further found that the application for the proposed
amendment to the license for administrative purposes to reflect the
indirect license transfer 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 February 28, 2017.
III.
Accordingly, pursuant to Sections 161b, 161i, and 184 of the
Act, 42 U.S.C. Sections 2201(b), 2201(i), and 2234; and 10 CFR
50.80, it is hereby ordered that the application regarding the
proposed indirect license transfer, as described herein, is
approved, subject to the following conditions:
1. A cash secured irrevocable standby letter of credit from a
federally insured bank in the amount of $300,000 that conforms to
the guidance provided in NRC Regulatory Guide 1.159 must be executed
at the time of, or before, the transfer.
2. A decommissioning trust fund for the Aerotest Radiography and
Research Reactor (ARRR) that conforms to the guidance provided in
NRC Regulatory Guide 1.159 must be established at the time of, or
before, the transfer.
3. Autoliv, Inc. shall enter into a Funding Agreement with
Nuclear Labyrinth, LLC (Nuclear Labyrinth) at the time of, or
before, the transfer. Written notice must be given to the NRC of any
changes to the Funding Agreement.
4. The Funding Agreement between Autoliv, Inc. and Nuclear
Labyrinth shall provide that upon the closing of the transaction of
the acquisition by Nuclear Labyrinth of all of the issued and
outstanding shares of stock of Aerotest Operations, Inc. (Aerotest)
from the previous ultimate owner of this stock, Autoliv, Inc., or
its subsidiaries, will make the following transfers of funds:
A. The sum of $943,225 to an account designated in writing by
Nuclear Labyrinth for the benefit of Aerotest intended to fund the
operations and maintenance costs of the ARRR for approximately 12
months (Operating Funds). The Operating Funds may only be used as
needed to fund the operations and maintenance costs of the ARRR and
may not be used by Nuclear Labyrinth for any other purpose. Upon the
written request of Aerotest, Nuclear Labyrinth shall distribute such
funds from the Operating Funds as Aerotest determines to be
necessary to operate and maintain the ARRR.
B. The sum of $3,376,030 to the decommissioning trust fund for
the ARRR.
C. The sum of $742,410 (plus the interest on this sum to be
calculated from October 1, 2010, to the date of acquisition based on
the 13-week Treasury bill rate) and the sum of $625,000 to a
segregated account in the decommissioning trust fund for the ARRR
(Nuclear Fuel Disposal Funds). The Nuclear Fuel Disposal Funds may
only be used to fund the disposal of the ARRR's nuclear fuel
elements pursuant to U.S. Department of Energy Contract DE-CR01-
83NE44484, as amended, and to fund the acquisition of fuel element
storage casks, respectively, and may not be used for any other
purpose.
D. The sum of $1,500,000 to the financial protection standby
trust for the ARRR.
E. The sum of $1,125,000 to a segregated account in the
decommissioning trust fund for the ARRR (Spent Fuel Management
Funds). The Spent Fuel Management Funds may only be used to fund the
management of the ARRR's nuclear fuel elements after the permanent
cessation of operations of the ARRR and before the acceptance of the
fuel by the U.S. Department of Energy.
It is further ordered that, consistent with 10 CFR 2.1315(b),
the conforming license amendment that makes administrative changes
to reflect the subject indirect license transfer is approved. The
amendment shall be issued and made effective at the time the
proposed indirect license transfer action is completed.
It is further ordered that, after receipt of all required
regulatory approvals of the
[[Page 13369]]
proposed indirect license transfer action, Aerotest shall inform the
Director of the Division of Policy and Rulemaking in writing of such
receipt and of the date of closing of the transfer no later than 7
business days prior to the date of the closing of the transfer.
Should the proposed indirect license transfer not be completed by
February 28, 2018, this Order shall become null and void, provided,
however, that upon written application and for 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 May 30, 2012, as supplemented by letters dated
July 19, 2012, October 15, 2012, January 10, 2013, April 21, 2016,
June 16, 2016, August 22, 2016, and October 10, 2016 (Agencywide
Documents Access and Management System (ADAMS) Accession Nos. for
these documents are listed in the ``Availability of Documents''
section of the Federal Register notice to which this order is
attached); other documents listed in the ``Availability of
Documents'' section of the Federal Register notice; and the NRC
Safety Evaluation dated February 28, 2017, 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. Publicly
available documents are accessible electronically through ADAMS in
the NRC Library at http://www.nrc.gov/reading-rm/adams.html. Persons
who encounter problems with ADAMS should contact the NRC's PDR
reference staff by telephone at 1-800-397-4209, or 301-415-4737, or
by email at [email protected].
Dated at Rockville, Maryland, this 28th day of February, 2017.
For the Nuclear Regulatory Commission.
Louise Lund,
Director, Division of Policy and Rulemaking, Office of Nuclear
Reactor Regulation.
[FR Doc. 2017-04756 Filed 3-9-17; 8:45 am]
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