ML20235H610
| ML20235H610 | |
| Person / Time | |
|---|---|
| Site: | 07001201 |
| Issue date: | 09/03/1987 |
| From: | Alto R BABCOCK & WILCOX CO. |
| To: | Rouse L NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| 28550, NUDOCS 8710010110 | |
| Download: ML20235H610 (5) | |
Text
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RET.UR8 TH 19FSS M
e Babcock & Wijcpl[kg Nuclear Power Division a McDermott compan/
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Lynchburg, VA 24506 o935 P.O. Box 1o935 C)1 py [ f' (EC4) 385-2000
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g sN N Mr. Leland C. Rouse, Chief d_
Fuel Cycle Safety Branch b
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Division of Fuel Cycle, Medical, Academic and Commercial SEP 81987d.
Use Safety g i U. S. NUCLEAR RfCU! MORT fy United States Nuclear Regulatory Commission S
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Re:
Babcock & Wilcox - Commercial Nuclear Fuel Plant NRC License No. SNM-1168, Docket 70-1201
Dear Mr. Rouse.:
In accordance with 10 CFR 70.36, the purpose of this letter is to seek consent of the Nuclear Regulatory Commission to the assignment of NRC License No. SNM-1168 upon the consummation of a planned business arrangement involving Ihe Babcock & Wilcox Company's Commercial Nuclear Fuel Plant (CNFP).
The arrangement will be the creation of a partnership between a newly formed subsidiary of The Babcock & Wilcox Company (to be called "D&W Fuel, Inc.") and a newly formed Delaware corporation (hereinafter the " French Company")
in which the shareholders will be U.S. subsidiaries of Framatome S. A., Uranium Pechiney S. A., and Cogema, S. A.
Under this arrangement, the French Company would acquire a 49% interest, and B&W through its subsidiary would retain a 51%
controlling interest, in the business and assets of the Nuclear Fuel Services business segment of Babcock & Wilcox's Nuclear Power Division. The headquarters for the new partnership, to be called "B&W Fuel Company," will remain in Lynchburg, Virginia.
Each of the French parent companies is already engaged in various stages of the nuclear fuel cycle within France and elsewhere in the world.
Cogema and its U.S. subsidiary, Cogema, Inc., own substantial uranium reserves, provide enrichment services, and are established in spent fuel transportation, repro-cessing and waste management.
Framatome designs PWP nuclear steam supply 9710010110 870903
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systems, nuclear fuel, and auxiliary systems, and manufactures reactor pressure vessels, reactor internals, steam generators, pressurizer and incore instrumen-tation.
Uranium Pechiney is involved in UF6 conversion, the ' production of zirconium metal, and zircaloy tube fabrication.
The parties have signed a letter of commitment to create the B&W Fuel Company partnership, and intend to sign definitive agreements on or about November 30, 1987.
The Commercial Nuclear Fuel Plant, which is licensed for possession and use of special nuclear material under License No. SNM-1168, and which is now a part of B&W's Nuclear Fuel Services business segment, would thereby become an asset of B&W Fuel Company.
The purpose of this letter, then, is to initiate the process for obtaining consent from NRC for the assignment of License SNM-1168 to B&W Fuel Company.
For the reasons set forth below, transfer of the NRC license to B&W Fuel Company would not be inimical to public health and safety or to the common defense and security.
It is anticipated that the current key personnel of the Nuclear Fuel Services business segment of B&W will continue to perform their present func-tions within the new company; none of the responsibilities of the CNFP will change with regard to Special Nuclear Materials License No. SNM-1168; and all of the statements and representations contained in or referred to in the SNM license will ccatinue to be applicable to and binding upon B&W Fuel Company.
Thus, the transaction will not cause a change in the determinations made by the NRC under 10 CFR 70.23(a) in regard to issuance of the SNM License, as follows:
1.
Once the B&W Fuel Company assumes control, there will be no changes in the activities conducted by the CNFP under License No. SNM-1168, as amended. The NRC has previously determined that these activities will be l
conducted for purposes authorized by 10 CFR 70.23(a)(1).
2.
The management direction and technical qualifications of the CNFP and its personnel will remain essentially as before.
The NRC has determined that the provisions of 10 CFR 70.23(a)(2) have been met with regard to the
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P qualifications necessary to use SNM for the purposes authorized by the license.
3.
B&W Fuel Company will own and maintain all physical assets, equipment and facilities of the CNFP necessary to protect health and to minimize danger to life or property as required by 10 CFR 70.23(a)(3).
The NRC has previously determined that these assets are adequate for this purpose.
4.
There will be no change to the CNFP procedures established to protect health and minimize danger to life or property.
The NRC has previously found these procedures to be adequate to implement the provisions of 10 CFR70.23(a)(4).
5.
The licensee of the CNFP will continue to be financially qualified.
The NRC has previcusly determined that Babcock & Wilcox is financially qualified as required by 10 CFR 70.23(a)(5).
B&W Fuel Company will also be financially qualified.
Babcock & Wilcox will provide or arrange to have provided adequate financial qualification assurances for the B&W Fuel Company until such time as the B&W Fuel Company can independently provide such assurances.
6.
There will be no change in the fundamental nuclear material controls at the CNFP required by 10 CFR 70.23(a)(6).
The NRC has previously deter-mined these controls to be adequate.
7.
The CNFP will maintain its existing plans for SNM physical protection and for security of SNM in transit as well as its on-site security requirements.
The NRC has previously determined that these plans, as required by 10 CFR 70.23(a)(9)-(10), are adequate.
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There will be no change in the current emergency plans at the CNFP as required by 10 CFR 70.23(a)(11).
The NRC has previously determined these plans to be adequate.
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There will be no' change in the environmental obligations or responsibil-ities of the CNFP under the transferred SNM License or in the licensee's ability to carry them out.
The technology that will be the property of B&W Fuel Company when the business transaction is closed will be that of the present Nuclear Fuel Services business segment of Babcock & Wilcox's Nuclear Power Division.
Technology of other business segments of the Nuclear Power Division or other Divisions of Babcock & Wilcox will not be involved.
Therefore, the French Company will not acquire any restricted data, classified information, or sensitive nuclear technology by virtue of this transaction.
In light of the forgoing, we. request the NRC give its consent to the transfer of NRC License No. SNM-1168 on or before November 1, 1987, with actual transfer to take place as soon as - possible after execution of the agreement formally establishing B&W Fuel Company.
There will be some minor wording changes that will be needed to incorpo-rate this business transaction in the various plans and licenses used by the CNFP when it is conveyed to the B&W Fuel Company.
These changes will be made and submitted as appropriate to the various NRC offices for their information and/or approval.
We would appreciate your timely consideration of this matter.
If you have any questions or need additional information, please call me at (804)522-5315.
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Very truly yours,
/ i R.A. Alto, Manager Commercial Nuclear Fuel Plant I
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