ML102510084

Y20100173 - Gray'S Engineering and Consulting, Inc. - Letter Aerotest Operations, Inc

ML102510084
Person / Time
Site:	Aerotest
Issue date:	09/14/2010
From:	Jessie Quichocho Research and Test Reactors Licensing Branch
To:	Gray P Gray's Engineering & Consulting
Adams A, NRC/N RR/DRIP/REXB, 415-1127
Shared Package
ml102510081	List: ML102510084
References
TAC ME4616, Y20100173
Download: ML102510084 (4)

Text

September 14, 2010 Mr. Phillip J. Gray, Sr.

President Grays Engineering and Consulting, Inc.

6047 S. Maple Ave.

Tempe, AZ 85283

SUBJECT:

GRAYS ENGINEERING AND CONSULTING, INC. - CONCERNS REGARDING AEROTEST OPERATIONS, INC., (TAC NO. ME4616)

Dear Mr. Gray:

I am responding to your letter to Kathryn Brock dated August 23, 2010. Your letter expressed concerns about the impact on your business of the closure of Aerotest Operations, Inc.,

(Aerotest) and asked that the U. S. Nuclear Regulatory Commission (NRC) allow Aerotest to stay open for business.

During its review of a request for license renewal from Aerotest, the NRC determined that Aerotest has failed to satisfy the requirements of Section 104 of the Atomic Energy Act of 1954 (the Act), as amended, and Title 10 of the Code of Federal Regulations (10 CFR) Section 50.38 regarding foreign ownership, control, or domination. The NRC found that Aerotest is controlled or dominated by its ultimate corporate parent, Autoliv, Inc. The majority of the board of directors and the executive officers of Autoliv, Inc., are non-U.S. citizens. For these reasons, NRC proposed denying the request for renewal from Aerotest, which would require Aerotest to cease operation of their reactor.

To remedy this situation, Aerotest, Autoliv ASP, Inc. (Autoliv ASP, Inc., is owned by Autoliv, Inc.,

and is the owner of Aerotest), and X-Ray Industries, Inc., submitted an application to the NRC requesting an indirect transfer of control of Aerotests license from Autoliv ASP, Inc., to X-Ray Industries, Inc. NRC issued an Order on July 6, 2010, approving the transfer request. In reviewing the transfer request, the NRC found that X-Ray Industries, Inc., meets the requirements of the Act and the regulations regarding foreign ownership, control or domination.

Unless extended, the Order requires the parties to complete the transfer by September 13, 2010. The decision to take the necessary actions to complete the transfer is the responsibility of Autoliv ASP, Inc., and X-Ray Industries, Inc.

P. Gray, Sr. I have enclosed a copy of the transfer Order and the non-proprietary safety evaluation supporting the Order for your information.

Sincerely,

/RA/

Jessie Quichocho, Chief Research and Test Reactors Licensing Branch Division of Policy and Rulemaking Office of Nuclear Reactor Regulation Docket No. 50-228

Enclosures:

As stated cc w/encls: See next page

Aerotest Operations, Inc. Docket No. 50-228 cc:

Sandy Warren, General Manager Aerotest Operations, Inc.

3455 Fostoria Way San Ramon, CA 94583 California Energy Commission 1516 Ninth Street, MS-34 Sacramento, CA 95814 Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414 Test, Research, and Training Reactor Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611

Package ML102510082 Incoming ML102500036 Response ML102510084,

Enclosures:

Order: ML101380228, Non-Prop SE: ML101380294 OFFICE PRLB:PM PRLB:LA PRLB:PM PRLB:BC DPR:D PRLB:BC NAME AAdams GLappert AAdams LTran for TBlount for JQuichocho aa gkl aa JQuichocho, TMcGinty jq DATE 9/9/10 9/9/10 9/9/10 9/9/10 9/14/10 9/14/10