Information Notice 1989-25, Unauthorized Transfer of Ownership or Control of Licensed Activities: Difference between revisions
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| issue date = 03/07/1989 | | issue date = 03/07/1989 | ||
| title = Unauthorized Transfer of Ownership or Control of Licensed Activities | | title = Unauthorized Transfer of Ownership or Control of Licensed Activities | ||
| author name = Cunningham R | | author name = Cunningham R | ||
| author affiliation = NRC/NMSS/IMNS | | author affiliation = NRC/NMSS/IMNS | ||
| addressee name = | | addressee name = | ||
Line 13: | Line 13: | ||
| document type = NRC Information Notice | | document type = NRC Information Notice | ||
| page count = 13 | | page count = 13 | ||
}} | }} | ||
{{#Wiki_filter:UNITED | {{#Wiki_filter:UNITED STATES | ||
NUCLEAR REGULATORY COMMISSION | |||
OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS | |||
WASHINGTON, D.C. 20555 March 7, 1989 NRC INFORMATION NOTICE NO. 89-25: UNAUTHORIZED TRANSFER OF OWNERSHIP OR | |||
CONTROL OF LICENSED ACTIVITIES | |||
==Addressees== | ==Addressees== | ||
:All U.S. Nuclear Regulatory Commission (NRC) source, byproduct, and | : | ||
All U.S. Nuclear Regulatory Commission (NRC) source, byproduct, and special | |||
nuclear material licensees. | |||
==Purpose== | ==Purpose== | ||
:This notice is to inform licensees of their responsibility to provide | : | ||
IN 89- | This notice is to inform licensees of their responsibility to provide timely | ||
notification to NRC before the planned transfer of ownership or control of | |||
licensed activities, and to obtain prior written consent to such action from | |||
NRC, as specified in 10 CFR Sections 30.34(b), 40.46, and 70.36. In addition, this notice provides guidance on the type of information that should be sub- mitted to NRC, before a change of ownership or control. It is expected that | |||
recipients will: review this notice for applicability to their licensed acti- vities; distribute it to responsible licensee management and corporate staff, radiation protection staff, and authorized users, as appropriate; and maintain | |||
procedures to preclude problems from occurring as the result of the transfer | |||
of control of licensed activities. However, suggestions contained in this | |||
notice do not constitute any new NRC requirements, and no written response | |||
is required. | |||
Discussion: | |||
Sections 81 and 184 of the Atomic Energy Act of 1954, as amended, require | |||
that a license be possessed to conduct licensed activities, and 10 CFR Section | |||
30.34(b) states that no NRC license nor any right under a license shall be | |||
transferred, assigned or in any manner disposed of, either voluntarily or | |||
involuntarily, directly or indirectly, through transfer of control of any | |||
license to any person, unless the Commission shall, after securing full in- formation, find that the transfer is in accordance with the provisions of | |||
the Act and shall give its consent in writing. Similar wording is found in | |||
Sections 40.46 and 70.36 of the regulations for source and special nuclear | |||
material. | |||
Recently, NRC has noticed an increasing trend to transfer ownership of | |||
businesses that control the use of licensed materials. Such changes in | |||
ownership are usually the results of mergers, buy-outs, or majority stock | |||
transfers. These actions appear to be occurring at a greater frequency | |||
because of the present economic environment. Although it is not the intent | |||
A- | |||
8903010075 g | |||
=) / | |||
IN 89-25 March 7, 1989 of NRC to interfere with the business decisions of licensees, it is necessary | |||
for licensees to provide timely notification to NRC whenever such decisions | |||
could involve changes in the corporate structure responsible for management | |||
oversight, control, or radiological safety of licensed materials. The purpose | |||
of such notification is to allow NRC to assure that: radioactive materials | |||
are possessed, used, owned, or controlled only by persons who have valid NRC | |||
licenses; materials are properly handled and secured; persons using such mate- rials are capable, competent, and committed to implement appropriate radiological | |||
controls; and public health and safety are not compromised by the use of such | |||
materials. | |||
In 1988, NRC identified several instances of businesses authorized to possess | |||
and use licensed materials that were transferred to other owners, with a | |||
consequent change in control, without any notification to the NRC. In such | |||
cases, NRC has usually become aware of the change either when conducting a | |||
routine inspection or when notified by the new controlling organization | |||
(transferee). | |||
Transfer of company ownership often results in the assumption of licensed | |||
activities by a corporation not authorized to use or possess licensed | |||
materials, and whose competence and ability to establish, implement, and | |||
maintain radiological controls have not been previously evaluated by NRC. | |||
In such cases, NRC usually determines that the transferee violated NRC | |||
requirements on use and possession of radioactive materials (because of | |||
its unauthorized use and possession), and that the predecessor entity | |||
(transferor) failed to inform NRC of the planned transfer of ownership. | |||
In specific cases, licensees have failed to inform NRC of changes in ownership | |||
and changes in locations of licensed material from those specified on the | |||
transferor's licenses. In one particular case, failure to notify NRC of | |||
a change in ownership may have contributed to the inadvertent loss of two | |||
nuclear weighing scales, containing several hundred millicuries of cesium-137. | |||
This type of situation could result in the exposure or contamination of | |||
individuals or the environment. | |||
NRC licensees planning to transfer ownership, a change in corporate status, or control of licensed activities are required by 10 CFR to provide sufficient | |||
prior notice and full information about the change to NRC, in order to obtain | |||
written consent from the Commission before the transfer. Although the burden | |||
of adhering to this requirement is on the existing licensee, it will be neces- sary for the transferee to provide supporting information or to independently | |||
coordinate the change in ownership or control with the appropriate NRC Regional | |||
Office. Failure to comply with this requirement may adversely affect the public | |||
health and safety-and interfere with NRC's ability to inspect activities. There- fore, NRC may consider that a violation of this requirement warrants escalated | |||
enforcement action, including civil penalties and orders, if indicated by the | |||
circumstances against one or both of the parties involved. Willful failure | |||
to obtain prior NRC approval of the transfer may result in referrals to the | |||
Department of Justice for consideration of criminal prosecution. | |||
IN 89-25 March 7, 1989 The following guidance is provided concerning notification of NRC of ownership | |||
or control changes: | |||
1. Full information on change in ownership or control of licensed | |||
activities should be submitted to the appropriate NRC Regional | |||
Office as early as possible, preferably at least 90 days before | |||
the proposed action. | |||
2. NRC approvals for change in ownership or control may be delayed or | |||
denied if the following information, where relevant, is not included | |||
in the submittal: | |||
a. The name of the organization, if changed. Provide the new | |||
name of the licensed organization and if there is no change, so state. | |||
b. Identification of any changes in personnel named in the license, including any required information on personnel qualifications. | |||
c. An indication of whether the seller will remain in business | |||
without the license. | |||
d. A complete, clear description of the transaction. The de- scription should include any transfer of stocks or assets. | |||
e. An indication of any planned changes in organization, location, facilities, equipment, procedures, or personnel. If such | |||
changes are to be made, they should be fully described. | |||
f. An indication of any changes in the use, possession, or storage | |||
of the licensed materials. If such changes are to be made, they | |||
should be described. | |||
g. An indication of whether all surveillance items and records, including radioactive material inventory and accountability | |||
requirements, will be current at the time of transfer. A | |||
description of the status of all surveillance requirements | |||
and records, e.g., calibrations. leak tests, surveys, etc. | |||
should be provided. | |||
h. A description of the status of the facility. Specifically, the | |||
presence or absence of contamination should be documented. If | |||
contamination is present, will decontamination occur before | |||
transfer? If not, does the successor company agree to assume | |||
full liability for the decontamination of the facility or site? | |||
i. A description of any decontamination plans, including financial | |||
assurance arrangements of the transferee, should be provided, | |||
IN 89-25 March 7, 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. | |||
This should include information about how the transferee | |||
and transferor propose to divide the transferor's assets, and responsibility for any cleanup needed at the time of | |||
transfer. | |||
j. An indication of whether the transferor and transferee agree | |||
to the change in ownership or control of the licensed material | |||
and activity. If so, documentation stating this should be | |||
provided. | |||
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments | |||
identified in the existing license. If not, the transferee | |||
must provide a description of its program to assure compliance | |||
with the license and regulations. | |||
No specific action or written response is required by this information | |||
notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently Issued NMSS Information | (301) 492-0514 Attachments: 1. List of Recently Issued NMSS Information Notices | ||
2. List of Recently Issued NRC Information Notices | |||
Attachment 1 IN 89-25 March 7, 1989 LIST OF RECENTLY ISSUED | |||
NMSS INFORMATION NOTICES | |||
Information Date of | |||
Notice No. Subject Issuance Issued to | |||
89-13 Alternative Waste Management 02/08/89 All holders of NRC | |||
Procedures in Case of Denial specific licenses | |||
of Access to Low-Level Waste | |||
Disposal Sites | |||
89-12 Dose Calibrator Quality 02/09/89 All NRC medical | |||
Control licensees | |||
89-03 Potential Electrical 01/11/89 All Fuel Cycle and | |||
Equipment Problems major nuclear materials | |||
licensees | |||
89-02 Criminal Prosecution of 01/09/89 All holders of NRC | |||
Licensee's Former President specific license | |||
for | |||
==Intent== | ==Intent== | ||
ional | ional Safety | ||
Violations | |||
88-100 Memorandum of Understanding 12/23/88 All major nuclear | |||
Between NRC and OSHA Relating materials licensees | |||
to NRC-Licensed Facilities and utilities holding | |||
(53 FR 43950, October 31, 1988) CPs and OLs. | |||
88-93 Teletherapy Events 12/02/88 All NRC medical | |||
licensees | |||
88-90 Unauthorized Removal of 11/22/88 All NRC licensees | |||
Industrial Nuclear Gauges authorized to | |||
possess, use, manufacture, or | |||
distribute industrial | |||
nuclear gauges | |||
88-66 Industrial Radiography 08/22/88 All NRC industrial | |||
Inspection and Enforcement radiography licensees | |||
OL = Operating License | |||
CP = Construction Permit | |||
J-' Attachment 2 IN 89-25 March 7, 1989 LIST OF RECENTLY ISSUED | |||
NRC INFORMATION NOTICES | |||
Information Date of | |||
Notice No. Subject Issuance Issued to | |||
89-24 Nuclear Criticality Safety 3/6/89 All fuel cvcle | |||
licensees and other | |||
licensees possessing | |||
more than critical | |||
mass quantities of | |||
special nuclear | |||
material. | |||
89-23 Environmental Qualification 3/3/89 All holders of OLs | |||
of Litton-Veam CIR Series or CPs for nuclear | |||
Electrical Connectors power reactors. | |||
89-22 Questionable Certification 3/3/89 All holders of OLs | |||
of Fasteners or CPs for nuclear | |||
power reactors. | |||
89-21 Changes in Performance 2/27/89 All holders of OLs | |||
Characteristics of Molded- or CPs for nuclear | |||
Case Circuit Breakers power reactors. | |||
88-73, Direction-Dependent Leak 2/27/89 Supplement 1 All holders of OLs | |||
Characteristics of Contain- or CPs for nuclear | |||
ment Purge Valves power reactors. | |||
89-20 Weld Failures in a Pump 2/24/89 All holders of OLs | |||
of Byron-Jackson Design or CPs for nuclear | |||
power reactors. | |||
89-19 Health Physics Network 2/23/89 All holders of OLs | |||
or CPs for nuclear | |||
power reactors, and | |||
the following fuel | |||
facilities: Nuclear | |||
Fuel Services of Erwin, General Atomic, UNC | |||
Montville, B&W LRC | |||
Lynchburg, and B&W | |||
Lynchburg. | |||
89-18 Criminal Prosecution of 2/22/89 All holders of OLs | |||
Wrongdoing Committed by or CPs for nuclear | |||
Suppliers of Nuclear power reactors. | |||
Products or Services | |||
OL = Operating License | |||
CP = Construction Permit | |||
IN 89-25 March 7, 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. | |||
This should include information about how the transferee | |||
and transferor propose to divide the transferor's assets, and responsibility for any cleanup needed at the time of | |||
transfer. | |||
j. An indication of whether the transferor and transferee agree | |||
to the change in ownership or control of the licensed material | |||
and activity. If so, documentation stating this should be | |||
provided. | |||
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments | |||
identified in the existing license. If not, the transferee | |||
must provide a description of its program to assure compliance | |||
with the license and regulations. | |||
No specific action or written response is required by this information notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently Issued NMSS Information | (301) 492-0514 Attachments: 1. List of Recently Issued NMSS Information Notices | ||
2. List of Recently Issued NRC Information Notices | |||
Also input from | |||
LChandler, OGC | |||
RWeisman, OGC | |||
*Editor *RI *RII *RIII *RIV *RV *OE | |||
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman | |||
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89 | |||
*See previous concurrence | |||
OFC: *IMOB :*IMOB :*IMAB :*IMSB :*IMOB *OGC :IMNS :*IMNS | |||
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey :RFonner:GSjoblom :RECunningham | |||
_____________________-_________________-____________________-________________ | |||
DATE:2/22/89 :2/23/89:2/23/89 :2/28/89 :2/28 /89 :2/28/89:2/ /89 :02/28/89 OFFICIAL RECORD COPY | |||
IN 89- March , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. This | |||
should include information about how the transferee and | |||
transferor propose to divide the transferor's assets, and | |||
responsibility for any cleanup needed at the time of transfer. | |||
j. An indication of whether the transferor and transferee agree to | |||
the change in ownership or control of the licensed material and | |||
activity. If so, documentation stating this should be provided. | |||
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments | |||
identified in the existing license. If not, the transferee | |||
must provide a description of its program to assure compliance | |||
with the license and regulations. | |||
No specific action or written response is required by this Information Notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301) 492-0514 Attachments: | ||
1. List of Recently Issued | |||
NMSS Information Notices | |||
2. List of Recently Issued | |||
NRC Information Notices | |||
Also input from | |||
LChandler, OGC | |||
RWeisman, OGC | |||
*Editor *RI *RII *RIII *RIV *RV *OE | |||
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman | |||
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89 | |||
*See previous concurrence | |||
OFC: *IMOB :*IMOB :*IMAB :*IMSB :IMq :0GkS S | |||
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey (6eIner:GS lom :R Cunningham | |||
DATE:2/22189 :2/23/89:2/23/89 :2/28/89 :2/7 /89 :A2/ 89:2/ 9:02 2589 | |||
IN 89- | |||
-S-e~ ,1989 as specified in 10 CFR Sections 30.35, 40.36, and 0.25. This | |||
should include information about how the transf ee and | |||
transferor propose to divide the transferor's ssets, and | |||
responsibility for any cleanup needed at the ime of transfer. | |||
j. An indication of whether the transferor d transferee agree to | |||
the change in ownership or control of tye licensed material and | |||
activity. If so, documentation stati this should be provided. | |||
k. A commitment by the transferee to ide by all constraints, conditions, requirements, repres tations, and commitments | |||
identified in the existing liceg e. If not, the transferee | |||
must provide a description of ts program to assure compliance | |||
with the license and regulat ns. | |||
No specific action or written response is/required by this Information Notice. | |||
Questions on this matter should be dire ed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301 492-0514 Attachments: | ||
1. List of Recently ssued | |||
NMSS Informati Notices | |||
2. List of Recent Issued | |||
NRC Informat n Notices | |||
Also input from | |||
LChandler, OGC | |||
RWeisman, OGC | |||
*Editor *RI *RII *RIII *RIV *RV OE a - | |||
EKraus JJoyner WCline BMallett WFisher RThomas JWa erman | |||
2/08/89 / 2/07/89 2/13/89 2/14/89 2/13/g9 Z/Ub/U9 Z/W.;Vb | |||
*See previous concurrence | |||
= =========== | |||
========================= | |||
OFC: IS Q:IMOB :1M = | |||
A:IM=== | |||
E===================M== | |||
~:IMOB :OGC . IMNS :IMNS | |||
- - - - -- | |||
------ ZAL-------- | |||
NAME:SMoore/sm :pD W | |||
:JA stin :LRouse :JHickey :RFonner:G blom :RECunningham | |||
_-----------------------_------------4 ------ | |||
_______________,,<r---- | |||
DATE:2/a2/89 :/'i/89:2ft5/89 :2/i;/89 :2/ /89 :2/ /89:2/ i :02/ /89 OH1CIAL RELURU CUPY | |||
IN 89- February , 1989 k. Do the transferor and transferee agree to the change in ownership | |||
or control of the licensed material and activity? If so, documentation stating this should be provided. | |||
No specific action or written response is required by this Information Notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301) 492-0514 Attachments: | ||
1. List of Recently Issued | |||
NMSS Information Notices | |||
2. List of Recently Issued | |||
NRC Information Notices | |||
(44) Iva~ | |||
Editor RI RII$"' R II4.{ RIV 'oS RYV OE | |||
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman | |||
2/8/89 2/17/89 2/13/89 2/i4/89 2/13/89 q2/ | |||
/89 2/ /89 OFC: IMOB :IMOB :IMAB :IMSB :IMOB :OGC :IMNS :IMNS | |||
___--__-___-___-__________-_______-____-_-______-e _____________-_____ | |||
NAME:SMoore/sm:DCool :JAustin :LRouse :JHickey :Rp X:GSjoblom :RECunningham | |||
DATE:2/ /89 :2/ /89:2/ /89 :2/ /89 :2/ /89 :2'/_Z/89:2/ /89 :02/ /89 | |||
IN 89- ' | |||
March , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. This | |||
should include information about how the transferee and | |||
transferor propose to divide the transferor's assets, and | |||
responsibility for any cleanup needed at the time of transfer. | |||
j. An indication of whether the transferor and transferee agree to | |||
the change in ownership or control of the licensed material and | |||
activity. If so, documentation stating this should be provided. | |||
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments | |||
identified in the existing license. If not, the transferee | |||
must provide a description of its program to assure compliance | |||
with the license and regulations. | |||
No specific action or written response is required by this Information Notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301) 492-0514 Attachments: | ||
1. List of Recently Issued | |||
NMSS Information Notices | |||
2. List of Recently Issued | |||
NRC Information Notices | |||
Also input from | |||
LChandler, OGC | |||
RWeisman, OGC | |||
*Editor *RI *RII *RIII *RIV *RV *OE | |||
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman | |||
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89 | |||
*See previous concurrence | |||
OFC: *IMOB :*IMOB :*IMAB :*IMSB :IMQb :0G ,7 S :1 w | |||
---- | |||
--- --- | |||
--- ------ --- --- --- --- --- 4 - -~ t- -- ----- | |||
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey E 4ner:GSz lomi Cunningham | |||
DATE:2/22/89 :2/23/89:2/23/89 :2/28/89 :2/1l/89 :2/t/89:2/ 9 0216/89 OFFICIAL RECORD COPY | |||
IN 89- tAo-cCk Seb6t*wry , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 0.5. This | |||
should include information about how the transf ee and | |||
transferor propose to divide the transferor's ssets, and | |||
responsibility for any cleanup needed at t -ime of transfer. | |||
j. An indication of whether the transferor d transferee agree to | |||
the change in ownership or control of t licensed material and | |||
activity. If so, documentation stati this should be provided. | |||
k. A commitment by the transferee to ide by all constraints, conditions, requirements, represe tations, and conmmitments | |||
identified in the existing lice e. If not, the transferee | |||
must provide a description of ts program to assure compliance | |||
with the license and regulat ns. | |||
No specific action or written response is required by this Information Notice. | |||
Questions on this matter should be direted to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301/ 492-0514 Attachments: | ||
1. List of Recently ssued | |||
NMSS Informati Notices | |||
2. List of Recent'y Issued | |||
NRC Informat' n Notices | |||
Also input from | |||
LChandler, OGC | |||
RWeisman, OGC | |||
*Editor *RI *RII *RIII *RIV *RV OEj4. A 11-JIL | |||
EKraus JJoyner WCline BMallett WFisher RThomas J~7perian | |||
2/08/89 / 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2J 89 | |||
*See previous concurrence | |||
OFC: I B :IMOB :IMAB :IM i :IMOB :OGC .YMNS :IMNS | |||
NAME:SMoore/sm :DQ ' :JAvstin :LRo se :JHickey :RFonner:G blom :RECunningham | |||
DATE:2/aS/89 :/A!/89:2h3 /89:2/ /89 :2/ /89 :2/ /8 :2/ / 02/89 UMLIAL KLUULP | |||
IN 89- February , 1989 k. Do the transferor and transferee agree to the change in ownership | |||
or control of the licensed material and activity? If so, documentation stating this should be provided. | |||
No specific action or written response is required by this Information Notice. | |||
Questions on this matter should be directed to the appropriate NRC Regional | |||
Office or to this office. | |||
Richard E. Cunningham, Director | |||
Division of Industrial and | |||
Medical Nuclear Safety | |||
Office of Nuclear Material | |||
Safety and Safeguards | |||
===Technical Contact:=== | ===Technical Contact:=== | ||
=== | ===Scott Moore, NMSS=== | ||
1. List of Recently | (301) 492-0514 Attachments: | ||
1. List of Recently Issued | |||
NMSS Information Notices | |||
2. List of Recently Issued | |||
NRC Information Notices | |||
Editor RI RII4 " I RIV Xs9 2 RV OE | |||
RIRIl e/ OE | |||
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman | |||
2/8/89 2/71/89 2/13/89 2/1/ 89 2/13/89 2/ S/89 2/ /89 OFC: IMOB | |||
-- -- --- -- :IMOB | |||
- - -- -:IMAB | |||
- -- - -:IMSB | |||
-- ----------------:IMOB :OGC | |||
--:IMNS | |||
- - - --:IMNS | |||
---- | |||
NAME:SMoore/sm:DCool :JAustin :LRouse :JHickey :RF aer:GSjoblom :RECunningham | |||
DATE:2/ /89 :2/ /89:2/ /89 :2/ /89 :2/ /89 :2 /5/89:2/ /89 :02/ /89}} | |||
{{Information notice-Nav}} | {{Information notice-Nav}} |
Latest revision as of 03:35, 24 November 2019
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS
WASHINGTON, D.C. 20555 March 7, 1989 NRC INFORMATION NOTICE NO. 89-25: UNAUTHORIZED TRANSFER OF OWNERSHIP OR
CONTROL OF LICENSED ACTIVITIES
Addressees
All U.S. Nuclear Regulatory Commission (NRC) source, byproduct, and special
nuclear material licensees.
Purpose
This notice is to inform licensees of their responsibility to provide timely
notification to NRC before the planned transfer of ownership or control of
licensed activities, and to obtain prior written consent to such action from
NRC, as specified in 10 CFR Sections 30.34(b), 40.46, and 70.36. In addition, this notice provides guidance on the type of information that should be sub- mitted to NRC, before a change of ownership or control. It is expected that
recipients will: review this notice for applicability to their licensed acti- vities; distribute it to responsible licensee management and corporate staff, radiation protection staff, and authorized users, as appropriate; and maintain
procedures to preclude problems from occurring as the result of the transfer
of control of licensed activities. However, suggestions contained in this
notice do not constitute any new NRC requirements, and no written response
is required.
Discussion:
Sections 81 and 184 of the Atomic Energy Act of 1954, as amended, require
that a license be possessed to conduct licensed activities, and 10 CFR Section
30.34(b) states that no NRC license nor any right under a license shall be
transferred, assigned or in any manner disposed of, either voluntarily or
involuntarily, directly or indirectly, through transfer of control of any
license to any person, unless the Commission shall, after securing full in- formation, find that the transfer is in accordance with the provisions of
the Act and shall give its consent in writing. Similar wording is found in
Sections 40.46 and 70.36 of the regulations for source and special nuclear
material.
Recently, NRC has noticed an increasing trend to transfer ownership of
businesses that control the use of licensed materials. Such changes in
ownership are usually the results of mergers, buy-outs, or majority stock
transfers. These actions appear to be occurring at a greater frequency
because of the present economic environment. Although it is not the intent
A-
8903010075 g
=) /
IN 89-25 March 7, 1989 of NRC to interfere with the business decisions of licensees, it is necessary
for licensees to provide timely notification to NRC whenever such decisions
could involve changes in the corporate structure responsible for management
oversight, control, or radiological safety of licensed materials. The purpose
of such notification is to allow NRC to assure that: radioactive materials
are possessed, used, owned, or controlled only by persons who have valid NRC
licenses; materials are properly handled and secured; persons using such mate- rials are capable, competent, and committed to implement appropriate radiological
controls; and public health and safety are not compromised by the use of such
materials.
In 1988, NRC identified several instances of businesses authorized to possess
and use licensed materials that were transferred to other owners, with a
consequent change in control, without any notification to the NRC. In such
cases, NRC has usually become aware of the change either when conducting a
routine inspection or when notified by the new controlling organization
(transferee).
Transfer of company ownership often results in the assumption of licensed
activities by a corporation not authorized to use or possess licensed
materials, and whose competence and ability to establish, implement, and
maintain radiological controls have not been previously evaluated by NRC.
In such cases, NRC usually determines that the transferee violated NRC
requirements on use and possession of radioactive materials (because of
its unauthorized use and possession), and that the predecessor entity
(transferor) failed to inform NRC of the planned transfer of ownership.
In specific cases, licensees have failed to inform NRC of changes in ownership
and changes in locations of licensed material from those specified on the
transferor's licenses. In one particular case, failure to notify NRC of
a change in ownership may have contributed to the inadvertent loss of two
nuclear weighing scales, containing several hundred millicuries of cesium-137.
This type of situation could result in the exposure or contamination of
individuals or the environment.
NRC licensees planning to transfer ownership, a change in corporate status, or control of licensed activities are required by 10 CFR to provide sufficient
prior notice and full information about the change to NRC, in order to obtain
written consent from the Commission before the transfer. Although the burden
of adhering to this requirement is on the existing licensee, it will be neces- sary for the transferee to provide supporting information or to independently
coordinate the change in ownership or control with the appropriate NRC Regional
Office. Failure to comply with this requirement may adversely affect the public
health and safety-and interfere with NRC's ability to inspect activities. There- fore, NRC may consider that a violation of this requirement warrants escalated
enforcement action, including civil penalties and orders, if indicated by the
circumstances against one or both of the parties involved. Willful failure
to obtain prior NRC approval of the transfer may result in referrals to the
Department of Justice for consideration of criminal prosecution.
IN 89-25 March 7, 1989 The following guidance is provided concerning notification of NRC of ownership
or control changes:
1. Full information on change in ownership or control of licensed
activities should be submitted to the appropriate NRC Regional
Office as early as possible, preferably at least 90 days before
the proposed action.
2. NRC approvals for change in ownership or control may be delayed or
denied if the following information, where relevant, is not included
in the submittal:
a. The name of the organization, if changed. Provide the new
name of the licensed organization and if there is no change, so state.
b. Identification of any changes in personnel named in the license, including any required information on personnel qualifications.
c. An indication of whether the seller will remain in business
without the license.
d. A complete, clear description of the transaction. The de- scription should include any transfer of stocks or assets.
e. An indication of any planned changes in organization, location, facilities, equipment, procedures, or personnel. If such
changes are to be made, they should be fully described.
f. An indication of any changes in the use, possession, or storage
of the licensed materials. If such changes are to be made, they
should be described.
g. An indication of whether all surveillance items and records, including radioactive material inventory and accountability
requirements, will be current at the time of transfer. A
description of the status of all surveillance requirements
and records, e.g., calibrations. leak tests, surveys, etc.
should be provided.
h. A description of the status of the facility. Specifically, the
presence or absence of contamination should be documented. If
contamination is present, will decontamination occur before
transfer? If not, does the successor company agree to assume
full liability for the decontamination of the facility or site?
i. A description of any decontamination plans, including financial
assurance arrangements of the transferee, should be provided,
IN 89-25 March 7, 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25.
This should include information about how the transferee
and transferor propose to divide the transferor's assets, and responsibility for any cleanup needed at the time of
transfer.
j. An indication of whether the transferor and transferee agree
to the change in ownership or control of the licensed material
and activity. If so, documentation stating this should be
provided.
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments
identified in the existing license. If not, the transferee
must provide a description of its program to assure compliance
with the license and regulations.
No specific action or written response is required by this information
notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments: 1. List of Recently Issued NMSS Information Notices
2. List of Recently Issued NRC Information Notices
Attachment 1 IN 89-25 March 7, 1989 LIST OF RECENTLY ISSUED
NMSS INFORMATION NOTICES
Information Date of
Notice No. Subject Issuance Issued to
89-13 Alternative Waste Management 02/08/89 All holders of NRC
Procedures in Case of Denial specific licenses
of Access to Low-Level Waste
Disposal Sites
89-12 Dose Calibrator Quality 02/09/89 All NRC medical
Control licensees
89-03 Potential Electrical 01/11/89 All Fuel Cycle and
Equipment Problems major nuclear materials
licensees
89-02 Criminal Prosecution of 01/09/89 All holders of NRC
Licensee's Former President specific license
for
Intent
ional Safety
Violations88-100 Memorandum of Understanding 12/23/88 All major nuclear
Between NRC and OSHA Relating materials licensees
to NRC-Licensed Facilities and utilities holding
(53 FR 43950, October 31, 1988) CPs and OLs.
88-93 Teletherapy Events 12/02/88 All NRC medical
licensees
88-90 Unauthorized Removal of 11/22/88 All NRC licensees
Industrial Nuclear Gauges authorized to
possess, use, manufacture, or
distribute industrial
nuclear gauges
88-66 Industrial Radiography 08/22/88 All NRC industrial
Inspection and Enforcement radiography licensees
OL = Operating License
CP = Construction Permit
J-' Attachment 2 IN 89-25 March 7, 1989 LIST OF RECENTLY ISSUED
NRC INFORMATION NOTICES
Information Date of
Notice No. Subject Issuance Issued to
89-24 Nuclear Criticality Safety 3/6/89 All fuel cvcle
licensees and other
licensees possessing
more than critical
mass quantities of
special nuclear
material.
89-23 Environmental Qualification 3/3/89 All holders of OLs
of Litton-Veam CIR Series or CPs for nuclear
Electrical Connectors power reactors.
89-22 Questionable Certification 3/3/89 All holders of OLs
of Fasteners or CPs for nuclear
power reactors.
89-21 Changes in Performance 2/27/89 All holders of OLs
Characteristics of Molded- or CPs for nuclear
Case Circuit Breakers power reactors.
88-73, Direction-Dependent Leak 2/27/89 Supplement 1 All holders of OLs
Characteristics of Contain- or CPs for nuclear
ment Purge Valves power reactors.
89-20 Weld Failures in a Pump 2/24/89 All holders of OLs
of Byron-Jackson Design or CPs for nuclear
power reactors.
89-19 Health Physics Network 2/23/89 All holders of OLs
or CPs for nuclear
power reactors, and
the following fuel
facilities: Nuclear
Fuel Services of Erwin, General Atomic, UNC
Lynchburg, and B&W
Lynchburg.
89-18 Criminal Prosecution of 2/22/89 All holders of OLs
Wrongdoing Committed by or CPs for nuclear
Suppliers of Nuclear power reactors.
Products or Services
OL = Operating License
CP = Construction Permit
IN 89-25 March 7, 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25.
This should include information about how the transferee
and transferor propose to divide the transferor's assets, and responsibility for any cleanup needed at the time of
transfer.
j. An indication of whether the transferor and transferee agree
to the change in ownership or control of the licensed material
and activity. If so, documentation stating this should be
provided.
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments
identified in the existing license. If not, the transferee
must provide a description of its program to assure compliance
with the license and regulations.
No specific action or written response is required by this information notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments: 1. List of Recently Issued NMSS Information Notices
2. List of Recently Issued NRC Information Notices
Also input from
LChandler, OGC
RWeisman, OGC
- Editor *RI *RII *RIII *RIV *RV *OE
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89
- See previous concurrence
OFC: *IMOB :*IMOB :*IMAB :*IMSB :*IMOB *OGC :IMNS :*IMNS
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey :RFonner:GSjoblom :RECunningham
_____________________-_________________-____________________-________________
DATE:2/22/89 :2/23/89:2/23/89 :2/28/89 :2/28 /89 :2/28/89:2/ /89 :02/28/89 OFFICIAL RECORD COPY
IN 89- March , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. This
should include information about how the transferee and
transferor propose to divide the transferor's assets, and
responsibility for any cleanup needed at the time of transfer.
j. An indication of whether the transferor and transferee agree to
the change in ownership or control of the licensed material and
activity. If so, documentation stating this should be provided.
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments
identified in the existing license. If not, the transferee
must provide a description of its program to assure compliance
with the license and regulations.
No specific action or written response is required by this Information Notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments:
1. List of Recently Issued
NMSS Information Notices
2. List of Recently Issued
NRC Information Notices
Also input from
LChandler, OGC
RWeisman, OGC
- Editor *RI *RII *RIII *RIV *RV *OE
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89
- See previous concurrence
OFC: *IMOB :*IMOB :*IMAB :*IMSB :IMq :0GkS S
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey (6eIner:GS lom :R Cunningham
DATE:2/22189 :2/23/89:2/23/89 :2/28/89 :2/7 /89 :A2/ 89:2/ 9:02 2589
IN 89-
-S-e~ ,1989 as specified in 10 CFR Sections 30.35, 40.36, and 0.25. This
should include information about how the transf ee and
transferor propose to divide the transferor's ssets, and
responsibility for any cleanup needed at the ime of transfer.
j. An indication of whether the transferor d transferee agree to
the change in ownership or control of tye licensed material and
activity. If so, documentation stati this should be provided.
k. A commitment by the transferee to ide by all constraints, conditions, requirements, repres tations, and commitments
identified in the existing liceg e. If not, the transferee
must provide a description of ts program to assure compliance
with the license and regulat ns.
No specific action or written response is/required by this Information Notice.
Questions on this matter should be dire ed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301 492-0514 Attachments:
1. List of Recently ssued
NMSS Informati Notices
2. List of Recent Issued
NRC Informat n Notices
Also input from
LChandler, OGC
RWeisman, OGC
- Editor *RI *RII *RIII *RIV *RV OE a -
EKraus JJoyner WCline BMallett WFisher RThomas JWa erman
2/08/89 / 2/07/89 2/13/89 2/14/89 2/13/g9 Z/Ub/U9 Z/W.;Vb
- See previous concurrence
==========
=============
OFC: IS Q:IMOB :1M =
A:IM===
E===================M==
~:IMOB :OGC . IMNS :IMNS
- - - - --
ZAL--------
NAME:SMoore/sm :pD W
- JA stin :LRouse :JHickey :RFonner:G blom :RECunningham
_-----------------------_------------4 ------
_______________,,<r----
DATE:2/a2/89 :/'i/89:2ft5/89 :2/i;/89 :2/ /89 :2/ /89:2/ i :02/ /89 OH1CIAL RELURU CUPY
IN 89- February , 1989 k. Do the transferor and transferee agree to the change in ownership
or control of the licensed material and activity? If so, documentation stating this should be provided.
No specific action or written response is required by this Information Notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments:
1. List of Recently Issued
NMSS Information Notices
2. List of Recently Issued
NRC Information Notices
(44) Iva~
Editor RI RII$"' R II4.{ RIV 'oS RYV OE
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman
2/8/89 2/17/89 2/13/89 2/i4/89 2/13/89 q2/
/89 2/ /89 OFC: IMOB :IMOB :IMAB :IMSB :IMOB :OGC :IMNS :IMNS
___--__-___-___-__________-_______-____-_-______-e _____________-_____
NAME:SMoore/sm:DCool :JAustin :LRouse :JHickey :Rp X:GSjoblom :RECunningham
DATE:2/ /89 :2/ /89:2/ /89 :2/ /89 :2/ /89 :2'/_Z/89:2/ /89 :02/ /89
IN 89- '
March , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 70.25. This
should include information about how the transferee and
transferor propose to divide the transferor's assets, and
responsibility for any cleanup needed at the time of transfer.
j. An indication of whether the transferor and transferee agree to
the change in ownership or control of the licensed material and
activity. If so, documentation stating this should be provided.
k. A commitment by the transferee to abide by all constraints, conditions, requirements, representations, and commitments
identified in the existing license. If not, the transferee
must provide a description of its program to assure compliance
with the license and regulations.
No specific action or written response is required by this Information Notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments:
1. List of Recently Issued
NMSS Information Notices
2. List of Recently Issued
NRC Information Notices
Also input from
LChandler, OGC
RWeisman, OGC
- Editor *RI *RII *RIII *RIV *RV *OE
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman
2/08/89 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2/23/89
- See previous concurrence
OFC: *IMOB :*IMOB :*IMAB :*IMSB :IMQb :0G ,7 S :1 w
--- ---
--- ------ --- --- --- --- --- 4 - -~ t- -- -----
NAME:SMoore/sm :DCool :JAustin :LRouse :JHickey E 4ner:GSz lomi Cunningham
DATE:2/22/89 :2/23/89:2/23/89 :2/28/89 :2/1l/89 :2/t/89:2/ 9 0216/89 OFFICIAL RECORD COPY
IN 89- tAo-cCk Seb6t*wry , 1989 as specified in 10 CFR Sections 30.35, 40.36, and 0.5. This
should include information about how the transf ee and
transferor propose to divide the transferor's ssets, and
responsibility for any cleanup needed at t -ime of transfer.
j. An indication of whether the transferor d transferee agree to
the change in ownership or control of t licensed material and
activity. If so, documentation stati this should be provided.
k. A commitment by the transferee to ide by all constraints, conditions, requirements, represe tations, and conmmitments
identified in the existing lice e. If not, the transferee
must provide a description of ts program to assure compliance
with the license and regulat ns.
No specific action or written response is required by this Information Notice.
Questions on this matter should be direted to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301/ 492-0514 Attachments:
1. List of Recently ssued
NMSS Informati Notices
2. List of Recent'y Issued
NRC Informat' n Notices
Also input from
LChandler, OGC
RWeisman, OGC
- Editor *RI *RII *RIII *RIV *RV OEj4. A 11-JIL
EKraus JJoyner WCline BMallett WFisher RThomas J~7perian
2/08/89 / 2/07/89 2/13/89 2/14/89 2/13/89 2/08/89 2J 89
- See previous concurrence
OFC: I B :IMOB :IMAB :IM i :IMOB :OGC .YMNS :IMNS
NAME:SMoore/sm :DQ ' :JAvstin :LRo se :JHickey :RFonner:G blom :RECunningham
DATE:2/aS/89 :/A!/89:2h3 /89:2/ /89 :2/ /89 :2/ /8 :2/ / 02/89 UMLIAL KLUULP
IN 89- February , 1989 k. Do the transferor and transferee agree to the change in ownership
or control of the licensed material and activity? If so, documentation stating this should be provided.
No specific action or written response is required by this Information Notice.
Questions on this matter should be directed to the appropriate NRC Regional
Office or to this office.
Richard E. Cunningham, Director
Division of Industrial and
Medical Nuclear Safety
Office of Nuclear Material
Safety and Safeguards
Technical Contact:
Scott Moore, NMSS
(301) 492-0514 Attachments:
1. List of Recently Issued
NMSS Information Notices
2. List of Recently Issued
NRC Information Notices
Editor RI RII4 " I RIV Xs9 2 RV OE
RIRIl e/ OE
EKraus JJoyner WCline BMallett WFisher RThomas JLieberman
2/8/89 2/71/89 2/13/89 2/1/ 89 2/13/89 2/ S/89 2/ /89 OFC: IMOB
-- -- --- -- :IMOB
- - -- -:IMAB
- -- - -:IMSB
-- ----------------:IMOB :OGC
--:IMNS
- - - --:IMNS
NAME:SMoore/sm:DCool :JAustin :LRouse :JHickey :RF aer:GSjoblom :RECunningham
DATE:2/ /89 :2/ /89:2/ /89 :2/ /89 :2/ /89 :2 /5/89:2/ /89 :02/ /89