ML20174A476
| ML20174A476 | |
| Person / Time | |
|---|---|
| Issue date: | 06/23/2020 |
| From: | Peter Habighorst NRC/OIP/ECNP |
| To: | Renner J Southern Ionics Minerals |
| Jones A | |
| References | |
| EA-20-071 | |
| Download: ML20174A476 (3) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 June 23, 2020 EA-20-071 Mr. James Renner Manager of Environmental Stewardship Southern Ionics Minerals, LLC 2649 Zero Bay Rd Patterson, GA 31557
SUBJECT:
TRANSFER OF CONTROL UNDER U.S. NUCLEAR REGULATORY COMMISSIONS LICENSING AUTHORITY - NON-CITED VIOLATION
Dear Mr. Renner:
This letter refers to the U.S. Nuclear Regulatory Commissions (NRCs) review of information relating to the August 1, 2019, indirect transfer of control of Southern Ionics Minerals, LLC (SIM). Specfically, SIMs parent company, Southern Ionics, Incorporated, sold 100 percent of its membership interest in SIM, the holder of NRC export license (XSOU8842), to the Chemours Company FC, LLC, a wholly-owned subsidiary of the Chemours Company, via a Membership Interest Purchase Agreement without Commission prior approval as required by Section 184 of the Atomic Energy Act (AEA), as amended (42 U.S.C. § 2234). A telephonic exit briefing was conducted with you on March 9, 2016.
By letter dated March 12, 2020, (Agencywide Documents Access and Management System (ADAMS) Accession No. ML20127H189), SIM submitted an application to amend NRC export license XSOU8842, which authorizes SIM to export rare earth mineral ores containing source material to China for non-nuclear end uses. SIM sought an amendment to change the name on the license to The Chemours Company FC, LLC, and to delete inactive consignees from the license. After further review and discussion with staff, SIM submitted an updated license amendment application and provided supplemental information to the NRC regarding the August 2019 acquisition of SIM by Chemours in a letter dated April 13, 2020 (ADAMS Accession No. ML20122A212). The letter included a self-disclosure of a possible violation of Title 10 of the Code of Federal Regulations (10 CFR) § 110.50(d) for not seeking the Commissions prior-approval before the August 2019 sale of SIM, as well as associated corrective actions.
Based on information developed during the review of this activity, the NRC determined that a Severity Level IV violation of NRC requirements occurred. The violation involved the indirect transfer of control of NRC export license XSOU8842 to another entity without the prior approval of the Commission contrary to Section 184 of the AEA, as amended. Section 184 states, in part, that no NRC license shall be transferred, 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.
Because : (1) SIM self-identified the violation, (2) corrected the violation within a reasonable time by submitting a revised license amendment application to change name of company and request the Commissions consent to the August 2019 indirect transfer of control, (3) the violation was not repetative, and (4) the violation was not willful, this violaton is being treated as a Non-Cited Violation (NCV), in accordance with Section 2.3.2.b of the NRCs Enforcement Policy.
The NRC has concluded that information regarding: (1) the reason for the violation(s); (2) the corrective actions that have been taken and the results achieved; and (3) the date when full compliance will be achieved is already adequately addressed on the docket in the letter dated April 13, 2020 (ADAMS Accession No. ML20122A212). Therefore, you are not required to respond to this letter unless the description herein does not accurately reflect your corrective actions or your position.
In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter, its enclosure(s), and your response, if you choose to provide one, will be made available electronically for public inspection in the NRC Public Document Room or from the NRC's Agencywide Documents Access and Management System (ADAMS), accessible from the NRC Web site at http://www.nrc.gov/reading-rm/adams.html. To the extent possible, your response should not include any personal privacy or proprietary, information so that it can be made available to the Public without redaction.
Sincerely,
/RA/
Peter J. Habighorst, Chief Export Controls and Nonproliferation Branch Office of International Programs
ML20174A476 OFFICE OIP/ECNP OE OE BC:OIP/ECNP NAME AJones RFretz JPeralta Phabighorst DATE 06/18/2020 06/18/2020 06/23/2020 06/23/2020