ML100490068

Request for Order for Indirect Transfer of License

ML100490068
Person / Time
Site:	Aerotest
Issue date:	01/19/2010
From:	Thams S X-Ray Industries
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML100490068 (10)

Text

)~^7 X-ay ~ndustries

.For all your.: nondestructive testing neds NONDESTRUCTIVE TESTING X-Ray e Gamma & High Energy Radiography

• Digital Radiography Magnetic Particle e Liquid Penetrant Ultrasonic e Eddy Current e High Volume Sorting Chemical Processing

• Metal Finishing January 19, 2010 Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 OATH AND AFFIRMATION Re: Aerotest Radiographyand Research Reactor License No. R-98 Requestfor Orderfor Indirect Transfer ofLicense To Whom It May Concern:

I, SCOTT TRAMS, hereby certify that the content of both this letter and the license transfer request submitted by Aerotest Operations, Inc., X-Ray Industries, Inc., and Autoliv ASP, Inc., dated January 7, 2010, (copy attached hereto) contains information that is true and correct to the best of my knowledge.

Respectfully submitted, SC, YTT',AMS X-Ray In'tifstries, Inc.

JEANNE M. PERRY Notary Public, State of Michigan County of Oakland k.

My Commission Expires Nov. 01, 2012 Acting in thle County of O A IeL.9, (0 1961 Thunderbird, Troy Ml 48084 (248) 362-2242, Fax (248) 362-4422 A-t C

vN&WX-"Ray Industrs k 1.j AEEST 3455 FOWORIAWAY BAMJO.C 48 PE YNINCG 88.22F(9os71 Docket No. 50-228, E:10 G.F.R. 50,80(i) 7,'00 7an;a2y

,US.SNucl6ar.RRegulatory .Commjission' Washin t6hf.C 1 2555M0011 AeroestRadgrp~hy" adR~search Reactor, License No. R-98 R me~ust for Order fo'r Indirect Transfer of Licne Puirsuant to 110 .F.R. §5,'0.80(a),.this lotteri~fequet ThtteUS lAr Regulato'~

Cormnission provide wiritten -onseýtntto'the inidi'recfirasfe ofcoitrlo~Lcn o 98,- which aithoribiizs,6p ration of the A6'fte'ttaorph-n Rsa Rea~ctor

("AI3RRfl. Thet~i§A_,_fer ofthis lic n~sisLeingý,!ý rpquest-ed. in,coiecionihiept nti"l stock sate of Aerots tOperations, In-dic,,(A~f~test") from Autbliv, ASP,, Incb. (current the Pa rtiesý_

"This letAter requestpro th i 1iettJc~snt nfr ;of ,dni6fr6jf th6 license. The

.Patiesund*i ino that- the NRC 'hais lhitiative.$ uind eir&p".t9-. mpif~y and stream line' I-icensing acti~ohsjfo eerhad tsretrpriualyfoi ,those.,reactorsunde'r

,250kw~, like:'th6ARRa -f NRC feurr~i~eirnu

-E~8~

P.~fM 26, 2009 TeNR'a not issued guidanceon indirect, license-ftrasfer requests,

.Specific ttst ~nrsihre3cfo ,rs. onsistentwitl i the NRC -srtmlihiing inifi~tive,

-this letterfol'low! the forrriat for rbque6sts for-indirect transfer oftmAt~rialslicenses^

suggested byl~uidance About Changes of Control and About Baiýkruypt& Involving 6yproduct, S "ir6i Sr -,31ei Nuclear Materials Licenses ,,NUREt ;1556, Vol. 15', App.

.F.

1) rovdes cmpete descrpto ofte trnat ionr (trahifer \of stocks or aslsets, or erer). Indicate whhethnmehscnedadinclude the rie~w~ha Mt. Include the~afi name ad lephone -in~im"b'e!r'6of a_M6I' h-e~ee contaict whoNRC ffia-y contactif moteinf rmtion is-tnegedd

a. Descr~tion of. Tran'saction. Aerotest oWns. t he ARRR in San Ramon.,

Caliornia. T he ARIR .R,performs neuitron radiograph "y- ~an other testing services criticI at

'to aerospace anid defens'e industries. Seller intends tosl l 1h the stock in Aerotestt to Buyer upon completion of 'commercial ne~gotiations.

Buyer has over 60 years eiXperience in-providiig-tradia-tion-based non-destrudfiive testing; services. guyer, holds acurrent radioiactivi.e materials licenseeintetaeo Oio,-and for ayyashshl R ies The- PAtties,aI to rcnsumateF he transactiomtby the. transfer ýfrbrri- Selrt Biyerof ll toklihi` Aeko~tes -and its.parent holding~r~ris E Aqrqspc, ni&4a Carfrha

~r~oatA~ian~ n&,a cP Delaware. corprtin 'to Buyyer.

b. No !Nlam Chf~ieýi After the s-,al of 7Aerotest's st.stck, Buyer doesý notý

'intend to c-hange th-- n~o t heARRo Aerot; c iceseeConactInfrniftatior. ?S66tt ~T.hahrs, Presiden fXRy lhdustries-, Inc., (2-48)' '613-ý4155,i. the o6ffic Ia conitactJor the Buyer, and Da6'rio.

BrisihelI (81M 65923if isithe Pr~esident of Ae'r~tdst. U~~ usi~sead~ h trai~actiow.06.crib~ bv; huqbedrcd to Robd b . l~mr.2 6-06 2~) D rie jý ay- hane iii pqrsomnpeo drutie ta reltt th plcesed pro~am.Incudetranin exnexporience for n'ew"Personnel.

'The 'parties are awaprre-f riotchanges in personnel or-dutiesrelated to the licens'ed -prograrns. The Bu.iyer htends-to retain the cu'rrehntm-a'naqgemrent team at the facilityexcept Scott VV. Tharm's will replace, Dario Brisighella'. A`sumnmary of h-isreleVant; experience isprvidled in,,AttqqIment 3.

'31) Debsribe any chan' s"In the orgaiain(oain aclteeupeto pro'c'edu're t6ha't re'laiei -to

,the licensed progr:amn.

1equipment~or pro~ceduresý that relate to-Ahe licensed programsr.

)Descrlibe the status of he surveillance program :(sureswpetts qualitcnrl aýt the'present time. anrd tIhe expected .status,at the. time that.

control i S~to betanfrred The6 _U.S.'Nuclear RegulatoryCommni.ss .ion conducted an inspectio,nof,the actfivities4 under Licertse"IR:-9b on Jun e-8-1 1,20,09. :No ite-ms of no'n-comrlia~nceý Were found during that inp'ectiqn. The presont'ýurv~ill nce programs have noit cbhed siic tseippctio~ It is not expected "'h'-" -n of the surveiliance' programs will change at~the timeý controllis transferred.

5) Confirm that ail records con ce rn'ing the safe a nd:eff ctive decomndiissioining ofathe fairidafetywillbthe puan rrebdct thetronbferee orat NRC "e rop.iate. These, rchagsr_ ictude do.maso fnlt of as .teyahof ambOpn df andlorfrem contaminaitions invabl fncUOiA" methods and.drititjUvlty pAer aust fnd _hfa.titht* anrecordsr**elating t6otre RR will bheNR" deoanmferrd tong phiayr 8 as s 6ua ihogý reqýIluring any recovrdes :dit-ibld in item #5.

6)i Confirmhate the transferee will. abide by all constraianits,: c -onditionsl reqiurements and cornrnitnients of the transferor or hatfhe transfere;Wi~ll AP, s N. complet hprposed.icnse

.... program;.

e the Buyer, by bmeanslof a.lter attached hereto as Attachme'nht y2, :rhas vivew.n*

.assuranceý.4to th6 SelIler th at iihtle fid~ t'd':abideI by' alIcn~r lsireeftheinga .cqpioitionsi As summrnilze-d -above, stock sale desri:,ibed above will have no hIip~act on the assura~noe

that Aerotest will continue 'to opernte thi AibRR in conforman.ce 'With NRC regulatiomne without endangering thýe heath and safety of the public or the..common defense and se-urity., There a~re ,no adverse changes in' .the areas 6f fmn~ancial and technical qqalificatioh and no c6hanges requiririg"' aitrust or--e-vi'rohnmenta r,'e-vie*w. This tmh~sfer is:ý dqateg d yeemot frome vi hi'idirec asfro owesi wvillI rIe. IuIfin,njh6 ahge t&1h& o,brganiz'sioipn, pro~cedures; orplci pAr~ot t. The curret li6hdsib6.Aertt isu~aged-.

'This: in,dlf~ct, rah nsrfdr f ownership vil rb!ýult in no effect onfi'n.anci alqualiflcations. TIhis

,change willthnot' 6Ifor Aerotest's costs' or 'r~v~enues. DecomnmissinOri~g assurance will beý provided by a trust fund and the cmrnrntmehit by X-Ray In~dustries to comply WiththNR decommissioning'financial assurance, requiremhents to. prvide, additional de'--it 1from

.revenues deriVe~d 'from 0 erating ARRk foir ih'frtfivb y~ar- T'he -deic-rmsin f~uining provZide-s re'asona-ble, asstsru c db aviua frrdol'i decomriiis-sioning as describedinfrfAiac meji7.l.

'No4R6stricte~d-Data or!,1i clsslfiid Natidin-al S`edurity: Inforrnatirin ~wt~

ARRR~or it's licens'e.

'Aierotest, bon it~s own: behal'f anRd on b6h aIf6fthie. Parties, requests'that you'rev~iewthis

,information- and.prov11ide.written consent to~this indi.re.ct ~lice:nsIe"trah sIfe'r' ffetivt 'upon the.

d!osinig of theacquisition, If yuhav -sy~et-on

-rgarding thssb ittlpease idontact R1olbert 8.ýH;iaerne'r-c9~s~to~r6t's, ~t(22~663-9086 orrobert.haemier plibuyaw~com.

I Sincerely, A

Darie BriSighella' nt, X-reynduse,,I Erid R. Swa-ns6n Assistant General Counsel Autoliv ASP,Inc..

Attachrmnits': 2) Decommissioning Fuding Analrsisifor ARRR

.2) X-R'ay Industries., Inc. Lefter of Commitment

3) Sumary of Relevant. ExperienceofSttWThm cc.'; U.S. NRC Office of Nuclear Reacor'Regulation/N RLPO

U.S. NRC Region IV,"Regionai Adminhistirator NRC, NRRO(C. Montgry)

NRCQ, OG (C,'Safford)

DocketNo. 50-228 License NP, R-98 Attfachmenti I' Dlcommissioning: Fundi ngAnaYsis*for Aerotez RdgrhVndREierhRe~b

.Reactor D"e-om 'iss*o'.n~gCost- Comparision. ______ ..........................

___... ' _T Re cto D&D . Yearof . 2009DDCOst I Class; I ite COSt per ft' C6st Estirate (including 25%i'Iingenc .. Area a of Class I

______ft 2___ e) floorArea, Sit A $306~00~

00 ~5,36424 j7,14.11 2 -. $9.84;

Sft-eI B7 M,603'086' 2003 $,i169 18,242 ' 0 $8.9 282.'96

.......... .. $420... 8 2. ..... . , ..........

IAARRR, 1* ..._____

.......i~=.*.____....

.1 .....

ARR~~

C Average**

.. . ... .. :...... u.. .*

ostbse 6 Untf 2

______o

$23 07

.0 Decommissioning estimate, $2,300,000 o;5 -2%rea;qrahteof return c to2,045 Amount needed $,15,000 mounht available initially Attached Buyer's cornmitment

,$2,000, 00 ,Attached B uyers. ,cornnimien*t:

Aimount available inz 201:5 $3,250i-000.

Diockets N.. 0-22 8, License No. k-7§8

• Att0hm~e~nt .2

,x-R'ay industri6s; ird.- L~I~ Omitment

,.NONDESTRUCTIVE TESTING XRay tn u9Mk-sDPla

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For all your nondestructivetesting needs X-Ray *....G~amma &ýHigh

`ý igitil EprqryRajlograpl~y

'Radigap*....

Rdgrpy' Magnetic Partic1e a iquid Penetrant, Ultrason*c Eddy Current - High Volume*, Sor*t'ng DociletN No. 50-;22-8

,January:6,'. 010 Document Control Desk.

U:;S:.Nuclear R.,egulatoiryComrmission Was hington, D.C..I20555-0001 Aer~otestRadiography and Reoearch Reactor se No. RAm8 Ll r..o Buyer Comin-_tmentv X-sRay ,lnduiries, Inc. ("Buyer.')is considering -acquiring the ownership of the stock and :business5of Aýerotest, Qetin, Inc. (Aerotest~) f6rn -Autoliv ASP,:-nc. (current parent corporatiorn of Aerotest)

("Seller"). A-da e c-rtain for this transad5tion as not, been d tr-min6d, although it is expected to occur on or-beforeJulY 30, 2010. If Buyer acquireis.Aerotest, Buyer intends to 6onti*uiu*eration of the facilityinra manner substantially idientical to that)ofthe S'eiler, including all operations subjeot to Reaor LicenserR*

98: (AerotestRadiog raphyy and ResearchReactor ("ARR.'") License')."

BUYuruhderst~nds that tindeit the Irrmis bf the ARRR licbise,; Sell&eisii 6Ubjec&t to' a niUmbb: bf 'd0nI traints, ieuirmensand carTirridtrfierl(S. Prior ztv the atqiii,e c~nitiris ~eIr Will jn10i r le5rtqrijSgjii'o complianceIwith the ARRR license and any violations. that o ccur pirior -to the, effective date oof,the

.acquisition. Afier 'the effect daie. .ofthe acqu.sIioqn, 'Buyer. agrees to abIde by ýall oI.fthe. constrain.t,

-conditions, requirements andcommitiments of the.*RRk License and any Violations t at occur after til effective date of th,~q~iiin upon ,icense .trahnfer, 'Buyerwill establish a dedofmmissioning trust J.nd'in the, armount of,$2,000,000 consi§stent iWith 10 C F.R.".-50.75(b)(1)'under terms, accepitable to the C.RA' draft of the tr-ustd0curerts.

vwIil be submitted 'to the. NRC ior-;review at a later'-datpe In. a.ddiiion, Buyer will deposit inio -t.ihis

.decomrmissi6oninL trqstfund an additional year derived p$250O0-'pr . f.rnre'vei'e frOe m opertin';ARR theirst iive'years, of ope~ration~ _alter? lices etkansfer, to I appreciate ,your assistance inrthis matter; iShould you -have.ainyo questions,: peiiase6 feel -free to .contact-me directly.

S*~o~t' . Thams, President,

• R-ay liidustries, Inc:

cc. U.S. NRC Office of Nucler Reactor Regulatlon/NRLPO U.S NR- .R*gion IV, RegiohalAdministrator

.NRC, N*R (C. Montgomery)

-QCG C... afor.)

1961 Thunderbird, Iro~y Ml "O84 (~448 (432 ta 4422 4b-22

Dockets No.;R50-228 Sumar RI~at:xprin~ef o cot . ham&

1 Industrie X-,.Ray ý-11 -1sp ic.

2A'~ummry Ieinf~tpriece or cot W.Thauisas Presidento Iferotest lhi!*.4n '21o orward asis:

L~~dt~h~~e~overbpth Peidntof Ar3tsz h6 wll~ dctt Thaýinis iU'nl ovr 0 ar

~ ~ ~hqvybuiessadi cxp~~~~~ricnce ~ ~ ~ Iilf ~~nni';~~dit(ýC.EOofX'XRa yTf 1dustdcs, Iii.

including~~ofc~a eyerytype himnryidrcelr gensa'r Bic-ongeerays' Indumsources, vwIt in thea comnpany's X-R;I Tetn iiin(vuxicsti~ Thssm iiino h

ýLorpyoperates an N-Ray beam line torth npcino es d-4jcreahratrfcltyf North 'CarolipaAinspett',n vearsspycLnoRaleighn North Creseirch tHe funded- a conipany in the mnedical device strlutonb~ies Iingtiigh energy electrons and has direct.-

expri~ence vvith shielding design for high radiation areas a a fiýiiýi~teiitIi ei~ n ~ntutm of a dedicated faci~iiy for that effort. The facility asuronl inopeatp ofhsitvolveIGentia k, line~ar iceeatrutor:

thtWas CIIStOM designedfofr he applicatiOn MilhI~MF'. TJIjZiis~ direc ptý Iievacetrao Btham, Ove LL tctWus subsequently so~ld w, MrBTams-hasthe relevýbant neexprenceti) dtehiaiaii'p~ etya.eet