ML20055C611

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Discusses Mcdermott,Inc,Plans to Establish B&W Investments Co (Bwico).Upon Completion of All Pertinent Actions, Mcdermott Will Transfer All B&W Stock to Bwico & Bwico Will Become wholly-owned Subsidiary of Mcdermott
ML20055C611
Person / Time
Site: BWX Technologies, 07000364, 07000824, 07000135, 07000028
Issue date: 05/18/1990
From: Eckert J
BABCOCK & WILCOX CO.
To: Bernero R
NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
References
NUDOCS 9005290094
Download: ML20055C611 (3)


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ig.-.Lg I BSWNL RLEAR TECHNOLOGIES 3315 Old Forest Road P.O. Box 10935 -

Lynchburg. VA 24506-0935-Telephone:804 385-2000 Telecopy: B04-385-3663 May 18,1990 I

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'Mr.-Robert M. Berneio, Director Office of Nuclear Material Safety and Safeguards-U.S. Nuclear Regulatory Commission Washington, D.C.

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Dear Mr.'Bernero:

. Babcock & Wilcox Company ("B&W") is the holder of the NRC Special Nuclear Materials - licenses identified in Attachment I to this letter, as' well as

'various' Source Material-and By@roduct Material licenses.

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- At? the-present time, all of the stock -of B&W is owned by McDermott, Inc.

.-("McDermott"), a Delaware corporation,- which also has assets _and liabilities -

E that are: unrelated to its ownership of B&W.

McDermott intends to establish a:

new - subsidiary,L Babcock - & Wilcox Investments Company - ("BWIC0"), a Del aware -

corporation..Upon completion of pertinent actions, McDermott will transfer all of the stock of B&W-to BWICO in exchange for all of the stock of BWICO.

As a.

result,. BWICO will be a wholly-owned subsidiary of McDermott and, in. turn, B&W.

will. be a wholly-owned subsidiary of. BWICO.

'.The directorc. and principal

' officers of BWICO will be the same as the directors and principal officers of-m

'B&W.

The foregoing change in stock ownership will hav'e no effect upon the activities-of B&W.under the NRC licenses.

The transaction will not result in any change-

.in' organization, location, facilities, equipment, procedures or personnel, nor in the corporate structure res)onsible for management, oversight, control, or

radiological safety. of licensec materials or in the use, possession or storage of the licensed materials.

In :our. view, the foregoing change in stock ownership does 'not constitute a transfer of. control of the'NRC licenses that would be subject to the consent of the NRC under-10 CFR 66 30.34(b) and 70.36.

Accordingly, we would appreciate receiving confirmation from the NRC that its consent is not required.

If, l receiving such consent.

. we would appreciate however, the NRC believes that its consent is required, It is intended that BWIC0 will provide a parent company guarantee of-funds for decommissioning costs for each of the NRC licenses listed in Attachment 1

'(except7 for SNM-42, which is to be covered by a letter of assurance that the

, ! U.S.. Department of Energy is responsible for decommissioning costs) pursuant to j-110 CFR $ 70'25(f)(2)' as well as for its 83y-Product and Source Material licenses

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pursuant'to 10 CFR 65 30.34(f)(2) and 40.36 (e)(2).

Since the NRC regulations require that such financial assurance be submitted to the NRC by July 27, 1990, we would _ appreciate receiving either the NRC's confirmation that consent to the -

change' in stock ownership is not required, or the' NRC's consent-by_ June ~ 22, 1990, in order to allow sufficient time for the-change. in stock ownership-to take-place, If you' have any questions or. need any additional _'information, please call John R. Lewis at 804/385-3630.

'f Jq in P. Eckert Schior Vice President & Group Executive Defense & Nuclear Power Group

-jck JRL90/jr197 -

Attachment cc: Stuart A. Treby, Esq. (USNRC 0ffice of General Counsel)

Maurice Axelrad, Esq. (Newman & Holtzinger, P.C.)

John R.: Lewis

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