ML20042D037
| ML20042D037 | |
| Person / Time | |
|---|---|
| Issue date: | 02/11/1986 |
| From: | Cunningham R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| To: | NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| Shared Package | |
| ML20042D038 | List: |
| References | |
| FOIA-88-158 NUDOCS 8803220292 | |
| Download: ML20042D037 (4) | |
Text
l FEB G L3 PEMORANDUM FOR:
Regional Administrators Branch Chiefs Division of Fuel Cycle and Material Safety FROM:
Richard E. Cunningham, Director Division of Fuel Cycle and Material Safety
SUBJECT:
POLICY AND GUIDANCE DIRECTIVE FC 06-2 ;
PROCESSING MATERIAL LICENSE APPLICATIONS INVOLVING CHANGE OF 0WNERSHIP We frequently receive material license applications involving change of ownership. This directive provides guidelines for processing such applications (See Enclosure). Specifically, guidance is provided as to which cases require a new license to be issued and which cases require an amendment to the existing license.
Reviewers are advised to obtain assistance from the legal staff as appropriate regarding cases involving change of ownership.
Questions may also be directed to Vandy L. Miller (FTS 427-4002).
Orda :
flichard E Cuaningham Richard E. Cunningham, Director Division of Fuel Cycle and
!!aterial Safety.
Enclosure:
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ENCLOSURE GUIDELINES FOR MATERIAL LICENSING CASES INVOLVING CHANGE OF OWNERSHIP 1.
Applicable Regulations Title 10 Section 30.34(b) states: "No license issued or granted pursuant to the regulations in this part and Parts 31 through 35, nor any right under a license 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 the Act and shall give its consent in writing."
Similar regulations are contained in 10 CFR Sections 40.46 and 70.36.
Thus, the regulations are very clear that control of licenses cannot be transferred without written permission from the Commission.
2.
Definitions Seller - An NRC licensee selling or otherwise giving up control of a licensed operation.
Buyer - An organization proposing purchase or otherwise gaining control i
of an NRC-licensed operation.
3.
Information Needed for Change-of-Ownership Applications a.
Any application or other correspondence received by NRC which indicates a possible change of ownership requires follow-up.
The most common indicator is a name change for the licensee.
Extensive personnel changes or a change in location may also indicate change of ownership, b.
Note that if the change of ownership has already occurred without written consent from NRC, it is a violation of NRC regulations.- Such cases should be referred to the inspection staff as appropriate.
c.
The applicant should address the following:
1.
Will the name of the licensed organization change?
a
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=
e-
=
2 2.
Will the names of the Radiation Protection Officer, authorized users, or any person identified in previous license applications as responsible for radiation safety or use of licensed material change?
3.
Will the seller remain in business (without the license)?
4.
Is the transfer accomplished by purchase of assets or by purchase of stock?
5.
Are there any changes in organization, location, facilities, equipment, or personnel which would require a license amendment even without the change of ownership?
6.
Does the purchaser agree to abide by all commitments and representations previously made to NRC by the seller?
7.
Written documentation should show clearly that both the buyer and seller agree to the transfer.
d.
The licensing staff should determine whether there are any enforcement actions pending against the buyer or seller.
If so, the licensing action should be coordinated with the enforcement staff.
The licensing staff should check to make sure all affected licenses e.
are identified by the applicant.
4.
Licensing Actions A license cannot be sold by itself to a buyer.
It may or may.
a.
not be sold as part of the sale of a licensed operation, depending' on the circumstances.
b.
If a licensed company is purchased in its entirety by the buyer, and the seller _will not continue in business as a separate entity, the purchase can be approved as a straightforward license amendment.
The license should be amended to reflect a name change. personnel changes, or any other change which would normally require an amendment.
If there are not changes, an amendment is not necessary, and the buyer and seller should be sent a simple letter stating that NRC has no objection to the sale, based on their written statements that no changes in the licensed operation will occur as a' result of the sale.
Nonnally, such sales are accomplished by purchase of stock.
. c.
If a licensed operation is purchased from a seller who continues in business as a separate entity (without the license), the buyer must submit a complete new license apolication and obtain a new license, even in cases where the licensed facilities and personnel do not change.
The buyer can use the seller's old application documents as a basis for preparing his application.
Upon issuance of the new license, the seller may request termination of the old license.
Normally, such sales are accomplished by purchase of assets.
d.
Unusual cases, exceptions, or questions should be referred to Headquarters and the legal staff for coordination.
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