ML13260A342

Withdrawn NRC Regulatory Issue Summary 2014-08: Regulatory Requirements for Transfer of Control (Change of Ownership) of Specific Materials Licenses

ML13260A342
Person / Time
Issue date:	05/27/2014
From:	Laura Dudes NRC/FSME/DMSSA
To:
Vasquez J
References
RIS-2014-08
Download: ML13260A342 (9)

See also: RIS 2014-08

Text

Withdrawn

NRC Regulatory Issue Summary 2014-08, Regulatory

Requirements for Transfer of Control (Change of

Ownership) of Specific Materials Licenses, dated May 27,

2014 (ADAMS Accession No. ML13260A342), has been

withdrawn and superseded by RIS 2014-08, Rev. 1

(ADAMS Accession No. ML15181A223).

UNITED STATES

NUCLEAR REGULATORY COMMISSION

OFFICE OF FEDERAL AND STATE MATERIALS

AND ENVIRONMENTAL MANAGEMENT PROGRAMS

WASHINGTON, DC 20555-0001

May 27, 2014

NRC REGULATORY ISSUE SUMMARY 2014-08

REGULATORY REQUIREMENTS FOR TRANSFER OF CONTROL

(CHANGE OF OWNERSHIP) OF SPECIFIC MATERIALS LICENSES

ADDRESSEES

All holders of, and applicants for, a specific materials license in accordance with the provisions

of Title 10, Energy, of the Code of Federal Regulations (10 CFR) Part 30, Rules of General

Applicability to Domestic Licensing of Byproduct Material, or 10 CFR Part 40, Domestic

Licensing of Source Material. All Agreement State Radiation-Control Program Directors and

State Liaison Officers.

INTENT

The U.S. Nuclear Regulatory Commission (NRC) is issuing this regulatory issue summary (RIS)

to clarify which information is required to be submitted to the NRC, prior to a change of

ownership or control for specific materials licenses issued under 10 CFR Part 30 or 10 CFR Part 40. This RIS also provides clarification on reporting requirements under 10 CFR 2.1301,

Public Notice of Receipt of a License Transfer Application, and 10 CFR 2.1305, Written

Comments. This RIS does not transmit any new requirements or new staff positions. No

specific action or written response is required. The NRC is providing this RIS to the Agreement

States for their information and for distribution to their licensees, as appropriate.

BACKGROUND INFORMATION

Regulations 10 CFR Part 30.34(b)(1) and 10 CFR Part 40.46(a) provide that no license granted

under 10 CFR Parts 30 through 36, Part 39, or Part 40 can be transferred, assigned or in any

manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of

control (TOC) of any license to any person, unless the Commission . . . [gives] its consent in

writing. Information Notice (IN) 89-25, Revision 1, Unauthorized Transfer of Ownership

Control of Licensed Activities, further outlines the need for licensees to obtain prior written

permission from the Commission before transferring control of licenses to other parties.

Furthermore, Revision 1 of IN 89-25 clarified that transferring control of an NRC license without

proper notification is considered to be an act of noncompliance with the NRC regulations and,

more specifically, is typically considered to be a Severity Level III violation and may warrant

escalated enforcement action, to include civil penalties and orders against one or both of the

parties involved, if indicated by the circumstances.

ML13260A342

RIS 2014-08

Page 2 of 4

Under Section 189.a(1)(A) of the Atomic Energy Act of 1954, as amended (AEA), an application

for TOC of a license shall be subject to an opportunity for hearing. In 1998, the NRC issued a

final rule, Streamlined Hearing Process for NRC Approval of License Transfers (1998 Rule),

(Federal Register, 63 FR 66721; December 3, 1998). This rule amended 10 CFR Part 2,

Agency Rules of Practice and Procedure, to provide uniform procedures and rules of

practice that would be applicable to all license transfers requiring prior NRC approval. Under

the 1998 Rule along with the 1999 final rule, Electronic Availability of NRC Public Records and

Ending of NRC Local Public Document Room Program (1999 Rule) (64 FR 48942;

September 9, 1999), the following documents must be placed in the Agencywide Documents

Access and Management System (ADAMS): the license transfer application and any

associated requests; the NRC correspondence with the applicant or licensee related to the

application; the NRC staff Safety Evaluation Report; any NRC staff order which acts on the

license transfer application; and, if a hearing is held, the hearing record and decision.

Under 10 CFR 2.1301 and 10 CFR 2.1305, as amended by the 1998 Rule and 1999 Rule,

members of the public may submit written comments as an alternative to a request for a hearing

or petition to intervene, and [the NRC] will notice receipt of each application for direct or indirect

transfer of a specific NRC license by placing a copy of the application at the NRC Web site,

http://www.nrc.gov. Furthermore, if appropriate, [the NRC will] respond to submitted

comments, but these comments do not otherwise constitute part of the decisional record.

Written comments are required to be submitted to the NRC within 30 days after public notice of

the receipt of the application, and the NRC will provide the licensee with a copy of any received

comments. While the licensee is not required to respond to the written comments, if it chooses

to do so, any response must be submitted to the NRC within 10 days of the licensees receipt of

the comments.

SUMMARY OF ISSUE

Holders of material licenses issued under 10 CFR Parts 30 or 40 should review NUREG-1556,

Vol. 15, Guidance about Changes of Control and about Bankruptcy Involving Byproduct,

Source, or Special Nuclear Materials Licenses, for guidance on submitting requests to the NRC

prior to transferring control of a license. Additionally, while written specifically for licensees

holding Part 70 material licenses, all material licensees should also review RIS 08-19,

Lessons-Learned from Recent 10 CFR Part 70 License-Transfer Application Reviews for

further insight regarding the required information to be submitted to NRC with respect to

materials TOC applications.

Full information on a proposed TOC should be submitted to the appropriate NRC regional or

Headquarters office no less than 90 days prior to the proposed transfer. The purpose of such

notification is to allow the NRC to review information pertaining to the transfer so that the

agency can ensure that: (1) radioactive materials are possessed, used, owned, or controlled

only by persons who have valid NRC licenses; (2) materials are properly handled and secured;

(3) persons using such materials are capable, competent, and committed to implementing

appropriate radiological controls; (4) licensees provide adequate financial assurance for

compliance with the applicable NRC requirements; and (5) public health and safety are not

compromised by the use of such materials. Although the burden of notification is on the existing

licensee, it may still be necessary for the transferee to provide supporting information or to

independently coordinate the TOC with the appropriate NRC office.

RIS 2014-08

Page 3 of 4

The NRC requires, in accordance with 10 CFR 2.1301 and 10 CFR 2.1305, that a notification of

an application for a TOC be posted for a 30-day public comment period. Consent for a TOC will

not be granted by the NRC until this 30-day posting period has elapsed and the NRC has found

that the transfer is in accordance with the AEA. In order to allow the NRC sufficient time to post

a notice of an application for TOC and to provide the required opportunity for the submission of

written comments, any licensee that intends to transfer control of a specific materials license

should notify the NRC as soon as possible. Any application for a TOC must include the

information outlined in 10 CFR 30.34(b)(2) or 10 CFR 40.46(b) for Part 30 and Part 40 licenses,

respectively. A notice of each TOC application for a materials license will be posted on the

NRCs Hearing Opportunities and License Applications webpage located at

http://www.nrc.gov/about-nrc/regulatory/adjudicatory/hearing-license-applications.html.

BACKFIT DISCUSSION

This RIS requires no action or written response beyond that already required by the NRC

regulations. Any action on the part of addressees in accordance with the guidance contained in

this RIS is strictly voluntary and, therefore, is not a backfit under any requirement.

Consequently, the staff did not perform a backfit analysis.

FEDERAL REGISTER NOTIFICATION

A notice of opportunity for public comment on this RIS was not published in the Federal Register

because this RIS is informational and does not represent a departure from current regulatory

requirements.

CONGRESSIONAL REVIEW ACT

This RIS is not a rule as designated by the Congressional Review Act (5 U.S.C. §§ 801-886)

and, therefore, is not subject to the Act.

RELATED GENERIC COMMUNICATIONS

Information Notice 1989-25, Revision 1, Unauthorized Transfer of Ownership Control of

Licensed Activities, ADAMS Accession No. ML082320739.

Regulatory Issue Summary 2008-19, Lessons Learned from Recent 10 CFR 70

License-Transfer Application Reviews, ADAMS Accession No. ML081760011.

PAPERWORK REDUCTION ACT STATEMENT

This RIS does not contain information-collection requirements and, therefore, is not subject to

the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

RIS 2014-08

Page 4 of 4

PUBLIC PROTECTION NOTIFICATION

The NRC may not conduct or sponsor, and a person is not required to respond to, a request for

information or an information collection requirement unless the requesting document displays a

currently valid Office of Management and Budget control number.

CONTACT

This RIS requires no specific action or written response. If you have any questions about this

summary, please contact the technical contact listed below or the appropriate regional office.

/RA/

Laura A. Dudes, Director

Division of Materials Safety and State Agreements

Office of Federal and State Materials

and Environmental Management Programs

Technical Contacts: Tomas Herrera, FSME/MSSA

(301) 415-7138

E-mail: Tomas.Herrera@nrc.gov

Justin A. Vazquez, FSME/MSSA

(301) 415-6684

E-mail: Justin.Vazquez@nrc.gov

Legal Contact: Tracey Stokes, OGC

(301) 415-1064

E-mail: Tracey.Stokes@nrc.gov

Enclosure:

List of Recently Issued FSME

Generic Communications

RIS 2014-08

Page 4 of 4

PUBLIC PROTECTION NOTIFICATION

The NRC may not conduct or sponsor, and a person is not required to respond to, a request for

information or an information collection requirement unless the requesting document displays a

currently valid Office of Management and Budget control number.

CONTACT

This RIS requires no specific action or written response. If you have any questions about this

summary, please contact the technical contact listed below or the appropriate regional office.

/RA/

Laura A. Dudes, Director

Division of Materials Safety and State Agreements

Office of Federal and State Materials

and Environmental Management Programs

Technical Contacts: Tomas Herrera, FSME/MSSA

(301) 415-7138

E-mail: Tomas.Herrera@nrc.gov

Justin A. Vazquez, FSME/MSSA

(301) 415-6684

E-mail: Justin.Vazquez@nrc.gov

Legal Contact: Tracey Stokes, OGC

(301) 415-1064

E-mail: Tracey.Stokes@nrc.gov

Enclosure:

List of Recently Issued FSME

Generic Communications

ML13260A342 *via email

OFC FSME/MSSA/LB FSME/MSSA/LB FSME/MSSA/LB FSME/MSSA/RMSB

NAME JVazquez HRodriguez-Luccioni THererra AMcIntosh

DATE 9/30/2013 9/30/2013 9/30/2013 9/27/2013

OFC FSME/MSSA/LB FSME/DWMEP/SPB* OE* OIS*

NAME MKotzalas LChang K Day for NHilton TDonnell

DATE 01/22/2014 10/7/2013 11/25/2013 11/29/2013

OFC OGC-CRA OGC-NLO FSME/MSSA QTE

NAME JAdler BJones LDudes JDougherty

DATE 04/07/2014 04/07/2014 05/12/2014 05/15/2014

OFC FSME/MSSA

NAME LDudes

DATE 05/27/2014

OFFICIAL RECORD COPY

RIS 2014-08

Enclosure

Page 1 of 3

List of Recently Issued Office of Federal and State Materials

and Environmental Management Programs Generic Communications

Date GC No. Subject Addressees

05/12/2014 RIS-2014-04 National Source Tracking System All licensees possessing Category 1 or

Long-Term Storage Indicator Category 2 quantities of sealed sources

reportable to the National Source Tracking

System (NSTS); all Agreement State

Radiation Control Program Directors; all

holders of an operating license or

construction permit for a nuclear power

reactor under Title 10 of the Code of

Federal Regulations (10 CFR) Part 50,

Domestic Licensing of Production and

Utilization Facilities, except those who

have permanently ceased operations

and have certified that fuel has been

permanently removed from the reactor

vessel; all holders of an operating license

for a non-power reactor (research reactor,

test reactor, or critical assembly) under

Title 10 of the Code of Federal Regulations

(10 CFR) Part 50, Domestic Licensing of

Production and Utilization Facilities,

except for those who have

permanently ceased operations.

05/12/2014 IN-2014-05 Verifying Appropriate Dosimetry All licensees and Radiation Control

Evaluation Program Directors and State Liaison

Officers

RIS 2014-08

Enclosure

Page 2 of 3

List of Recently Issued Office of Federal and State Materials

and Environmental Management Programs Generic Communications

Date GC No. Subject Addressees

04/28/2014 IN-2014-06 Damage of Industrial Radiographic All U.S. Nuclear Regulatory Commission

Equipment due to Falling material licensees possessing industrial

Equipment and Improper Mounting radiographic equipment, regulated under

10 CFR Part 34; all Agreement States

Radiation Control Program Directors; all

holders of and users of a transportation

package certificate of compliance under

Title 10 of the Code of Federal Regulations

(10 CFR) Part 71, Packaging and

Transportation of Radioactive Material,

that possess industrial radiographic

equipment regulated under 10 CFR Part

34, and all holders of or applicants for an

early site permit, standard design

certification, standard design approval,

manufacturing license, or combined

license under 10 CFR Part 52, Licenses,

Certifications, and Approvals for Nuclear

Power Plants.

04/16/2014 RIS-2014-02 Withdrawal of NRC Generic Letter All holders of and applicants for con-

95-08, 10 CFR 50.54(p) Process for struction permits or operating licenses for

Changes to Security Plans Without nuclear power reactors under the

Prior NRC Approval provisions of Title 10, Energy, of the

Code of Federal Regulations (10 CFR) Part

50, Domestic Licensing of Production and

Utilization Facilities. All holders of and

applicants for a combined license, stan-

dard design approval, or manufacturing

license under 10 CFR Part 52, Licenses,

Certifications, and Approvals for Nuclear

Power Reactors. All applicants for a

standard design certification, in-cluding

such applicants after initial issuance of a

design certification rule.

RIS 2014-08

Enclosure

Page 3 of 3

List of Recently Issued Office of Federal and State Materials

and Environmental Management Programs Generic Communications

Date GC No. Subject Addressees

03/04/2014 IN-99-03, Rev. Exothermic Reactions Involving All operating uranium recovery facilities

1 Dried Uranium Oxide Powder that produce uranium oxide powder

(Yellowcake) (yellowcake). All Agreement States with

the authority to regulate uranium mills

(i.e., Utah, Colorado, Texas, Ohio, Illinois,

and Washington).

03/13/2014 RIS-2014-03 Notice of 10 CFR Part 37 All holders of and applicants for U.S.

Implementation Deadline for NRC Nuclear Regulatory Commission (NRC)

Licensees licenses that possess Category 1 and

Category 2 quantities of radioactive

material, NRC Master Material

Licensees, Agreement State Radiation

Control Program Directors, and State

Liaison Officers

Note: This list contains the six most recently issued generic communications, issued by the Office of Federal and

State Materials and Environmental Management Programs. A full listing of all generic communications may be

viewed at the NRC public Web site at the following address: http://www.nrc.gov/reading-rm/doc-

collections/gen-comm/index.html