ML20211N645
| ML20211N645 | |
| Person / Time | |
|---|---|
| Site: | Framatome ANP Richland |
| Issue date: | 01/27/1987 |
| From: | England W EXXON CORP. |
| To: | Jennifer Davis NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| 27863, NUDOCS 8703020163 | |
| Download: ML20211N645 (3) | |
Text
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EREN CORPORATION WILUAM T. ENGLAND 1251 A'4NUE OF THE AMERCAS, NEW YORK, N.Y. 10020 -11am Counsel e
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January 27, 1987 p2NyYb e
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Mr. John G. Davis RECEIVED FEB 121SS7 }3 Director o~4 Office of Nuclear Mater 9'1 d
j Safety and Safeguards a lu g UAriUCt. EAR REGULATORY f U.S. Nuclear Regulatory Commission 1 cs F$$$C#
E Washington, D.C. 20555 g
M sectim, y Re: Sale of' Exxon Nu lear Compan M M.
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(NRC License No. SNM-1227)
Dear Mr. Davis:
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w This refers to our meeting of SepNmber 4, 1986 and subse-quent correspondencel between Exxon Nuclear Company, Inc.
(" ENC") and the U.S. Nuclear Regulatory Commission concerning the then contemplated sale of a controlling interest in ENC to Kraftwerk Union AG ("KWU"), a company incorporated in the Federal Republic of Germany.
The purpose of this letter is twofold:
first, to advise you that the contemplated transaction has been consummated on a basis consistent with Mr. Beard's letter to you of October 10, 1986 referenced in subjoined footnote 1; and second, to thank you and your staff for the prompt and efficient manner in which the NRC conducted its review of this matter, culminating in the ref erenced NRC consent letter of October 28, 1986.
In principal summary, under the stock purchase agreement between Exxon Corporation and KWU consummated on December 31, 1986, Siemens Capital Corporation, a U.S.
affiliate of KWU, acquired 100% of the common stock of ENC.
Exxon has retained a non-voting preferred stock interest in ENC, limited in time and amount.
The ENC businesses included in the transaction are uranium oxide nuclear fuel fabrication and related technical services, and uranium procurement and resale.
Prior to the closing, ENC divested itself of all ownership interest in various subsidiaries, particularly including Exxon Nuclear Idaho Company, Inc. and Jersey Nuclear-Avco Isotopes, Inc., by transferring its shareholdings therein to Exxon Tech-nology Holding Corporation, a directly wholly-owned domestic 8703020163 870127 PDR ADOCK 07001257 7 b eb
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Specifically, the letter dateUdolisr-~1U, 1986 from Mr. S. J.
Beard, Exxon Nuclear Company, Inc., to Mr. John G. Davis, NRC; and the letter of October 28, 1986 from Mr. Davis to Mr. Beard.
274G
affiliate of Exxon Corporation.
ENC retained ownership of two existing subsidiaries, Exxon Nuclear International, Inc.,
a Delaware corporation, and Exxon Nuclear GmbH, a company organized under the laws.of the Federal Republic of Germany.
The latter company owns and operates the Lingen fuel assembly plant.
The names of ENC and its remaining subsidiaries have been changed since the date of the transaction.
Prior to the closing, any intellectual property rights owned by ENC in the fields of centrifuge and laser enrichment, chemical reprocessing and mixed-oxide fuel fabrication were similarly divested, as were any associated records, all of which are now in the custody and control of a domestic affiliate of Exxon.
Any Restricted Data, Classified Information or Sensitive Nuclear Technology, as those terms are. defined in 10 CFR Part 810, in the custody of ENC or any subsidiary thereof were expressly excluded from the Exxon-KWU transaction, and Exxon has arranged for storage of-all classified documents in governmentally approved repositories, with access thereto appropriately restricted.
Accordingly, neither KWU nor any affiliate of KWU acquired any classified information or sensitive nuclear technology by virtue of acquiring its interest in ENC or ENC's remaining subsidiaries.
Under the agreement, KWU has agreed to seek the release of Exxon from whatever obligations it may have under its letters of assurance dated December 8, 1978 and September 9, 1986 to the NRC relating to decommissioning and decontamination of ENC's Richland facilities; relatedly, KWU has assumed all obligations of Exxon arising from the undertakings expressed in such letters.
KWU has also assumed responsibility for all conditions, representations and commitments which are to remain in effect after December 31, 1986 as obligations of the shareowner of ENC, as provided in the NRC letter to ENC referenced in footnote 1 herein.
If you have any questions respecting the foregoing, please feel free to call or write me.
Sincerely yours, d64
- a-WTE:lb cc: Mr. S. J. Beard President and Chief Executive Officer Advanced Nuclear Fuels Corporation (Formerly Exxon Nuclear Company, Inc.)
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