ML18194A769
| ML18194A769 | |
| Person / Time | |
|---|---|
| Site: | 04008850 |
| Issue date: | 07/11/2018 |
| From: | Lawyer D R NRC Region 1 |
| To: | Alliant Techsystems Operations |
| References | |
| 608605 | |
| Download: ML18194A769 (3) | |
Text
SAFETY EVALUATION REPORT PROPOSED INDIRECT TRANSFER OF CONTROL FOR NRC SOURCE MATERIALS LICENSE NUMBER SUB-1440, ALLIANT TECHSYSTEMS OPERATIONS, LLC DATE: July 11, 2018 DOCKET NO.: 04008850 LICENSE NO.: SUB-1440 LICENSEE:
Alliant Techsystems Operations, LLC TECHNICAL REVIEWER:
Dennis Lawyer
SUMMARY
AND CONCLUSIONS Alliant Techsystems Operations, LLC (Alliant) holds a source materials license issued by the U.S. Nuclear Regulatory Commission (NRC). Under NRC Materials License SUB-1440, Alliant is authorized to possess, store, distribute, manufacture and assemble source material into military munitions, perform quality assurance testing, and disassemble munitions at their facility in Rocket Center, West Virginia.
By letters dated April 26, 2018, Agencywide Documents Access and Management System (ADAMS) Accession Number ML 18124A249 and June 20, 2018, ADAMS ML 18179A209, Alliant and Northrop Grumman Innovation Systems, Inc., the parent company of Alliant, notified the NRC of an indirect transfer of control that occurred on June 6, 2018 as a result of a merger between its parent corporation, Orbital ATK, Inc. and Northrop Grumman Corporation.
This notification is interpreted as a request for the NRC's consent to an indirect transfer of control of the above license from Orbital ATK, Inc., to Northrop Grumman Corporation.
Orbital ATK, Inc. in accordance with an Agreement and Plan of Merger, continued as a surviving corporation and became a wholly-owned subsidiary of Northrop Grumman Corporation, but changed its name to Northrop Grumman Innovation Systems, Inc. After the merger, Alliant continues to exist as a wholly owned subsidiary of Northrup Grumman Innovations Systems, Inc. The request for consent was reviewed by NRC staff for an indirect transfer of control of a 10 CFR Part 40 licensee using the guidance in NUREG-1556, Volume 15, Revision 1, "Consolidated Guidance About Materials Licenses -Guidance About Changes of Control and About Bankruptcy Involving Byproduct, Source, or Special Nuclear Materials Licenses," dated June 2016. The NRC staff finds that the information submitted by Northrop Grumman Innovation Systems, Inc. and Alliant, sufficiently describes and documents the transaction and commitments made by Alliant. As required by 10 CFR 40.46 and section 184 of the Atomic Energy Act, as amended (the Act), NRC staff has reviewed the application and finds that the indirect transfer of control is in accordance with the Act. The staff finds that Alliant may continue to use source material for the purpose requested and has the equipment, facilities, and procedures needed to protect public health and safety, and promote the common defense and security.
2 SAFETY AND SECURITY REVIEW According to the data obtained from the NRC's Web Based Licensing (WBL), Alliant has been an NRC licensee since April 20, 1984. The NRC conducted a main office inspection of Alliant on May 31, 2016, for NRC Materials License No. SUB-1440, and one violation was identified during the inspection.
The violation was associated with not providing training to perform certain functions associated with hazardous material transportation.
The licensee performed training with the individual before August 31, 2016, to provide the needed functions associated with hazardous materials.
They also committed to train all other personnel about those functions before they commenced performing those functions.
The commitments made by Alliant states that under the transaction the following did not change: A. the radiation safety officer listed in the NRC license; B. the personnel involved in licensed activities; C. the locations, facilities, and equipment authorized in the NRC license; D. the radiation safety program authorized in the NRC license; E. the organization's name listed in the NRC license; or F. the maintenance of required surveillance records and decommissioning records. The indirect transfer of control occurred on June 6, 2018. A pre-licensing visit is not required because Northrop Grumman Corporation, Alliant's new ultimate parent company, is a known entity in accordance with the guidance provided by the NRC's Office of Federal and State Materials and Environmental Management Programs (FSME), "Checklist to provide a basis for confidence that radioactive materials will be used as specified on the license," September 3, 2008, revision.
The purpose of this aspect of the review is for the NRC to obtain reasonable assurance from new license applicants or NRC license transferees that the licensed material will be used for its intended purpose and not for malevolent use. Since Northrop Grumman Corporation is a known entity, the NRC concludes that the material will be used for its intended purpose and not for malevolent use. Alliant is not required to have decommissioning financial assurance based on the types and amount of material authorized in NRC Materials License No. SUB-1440.
REGULATORY FRAMEWORK Section 184 of the Atomic Energy Act of 1954, as amended, prohibits the transfer of control of any license unless the Commission finds that the transfer is in accordance with the Act and consents to the transfer in writing. Alliant's NRC Materials License No. SUB-1440, was issued under 10 CFR Part 40, "Domestic Licensing of Source Material." The NRC is required by 10 CFR 40.46 to determine if the transfer of control is in accordance with the provisions of the Act and give its consent in writing.
3 10 CFR 40.46(a) states: "No license issued or granted pursuant to the regulations in this part shall be transferred, assigned or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of any license to any person, unless the Commission shall after securing full information, find that the transfer is in accordance with the provisions of this act, and shall give its consent in writing." As previously indicated, the staff evaluation associated with the transfer of control is based on guidance in NUREG-1556, Volume 15, Revision 1. The central issue when determining whether a license is indirectly transferred is whether the authority over the license has changed. Northrop Grumman Innovation Systems, Inc., the owners of Alliant, request for consent describes an indirect transfer of control of the NRC license held by Alliant, resulting from a merger associated with Orbital ATK, Inc. and Northrop Grumman Corporation.
Following the merger, Alliant continues the licensed activities, remains owned by Orbital ATK, whose name is changed to Northrop Grumman Innovation System, Inc. and is a wholly-owned subsidiary of Northrop Grumman, and, as such, the transfer requires the NRC's consent. DESCRIPTION OF TRANSACTION The transaction is described in ADAMS accession number ML 18179A209.
After completion of the merger, Alliant is a wholly owned subsidiary of Northrop Grumman Innovation Systems, Inc., is a wholly owned subsidiary of Northrop Grumman Corporation, continues the activities described under the license, and is in control of all licensed activities under NRC Materials License No. SUB-1440.
The NRC staff finds that the request for consent adequately provides a complete and clear description of the transaction and is consistent with the guidance provided in section 5 and Appendix E of NUREG-1556, Volume 15, Revision 1. No license amendment is necessary as the licensee is not changing names or activities.
TRANSFEREE'S COMMITMENT TO ABIDE BY THE TRANSFEROR'S COMMITMENTS The NRC staff finds that the information submitted by Alliant and Northrop Grumman Innovation Systems, Inc. sufficiently describes the transaction; documents the licensee's commitments; and demonstrates that licensee personnel have the experience and training to properly implement and maintain the license and that they will maintain the existing records. The submitted information also demonstrates that the licensee will abide by all existing commitments in the license, consistent with the guidance in NUREG-1556, Volume 15, Revision 1. ENVIRONMENTAL REVIEW An environmental assessment for transfer of control is not required since this action is categorically excluded under 10 CFR 51.22(c)(21
). CONCLUSION The NRC staff has reviewed the request for consent submitted by Alliant and Northrop Grumman Innovation Systems, Inc. and consents to the proposed indirect transfer of control. The submitted information sufficiently describes the transaction, documents the licensee's commitments, and demonstrates that personnel have the experience and training to properly