ML20204D624

SER Accepting Application to Transfer & Amend W Matls Licenses,Qa Program Approval & Cocs

ML20204D624
Person / Time
Site:	Westinghouse
Issue date:	03/10/1999
From:	Emeigh C NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:
Shared Package
ML20204D603	List: ML20204D624 ML20204D697 ML20204D718 ML20204D742 ML20204D916 ML20204E000
References
TAC-K31120, NUDOCS 9903240254
Download: ML20204D624 (3)

Text

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ENCLOSURE 2. SAFETY EVALUATION REPO~'

DOCKET 70-1151 LICENSEE: Westinghouse Electric Company, a divisio i of CBS Corporation

SUBJECT:

SAFETY EVALUATION REPORT: APPLICATION TO TRANSFER AND AMEND WESTINGHOUSE MATERIALS LICENSES, QUALITY ASSURANCE PROGRAM APPROVALS AND CERTIFICATES OF COMPLIANCE (TAC NO. L31120)

BACKGROUND By letters dated September 28,1998; January 18,1999; and February 22,1999; Westinghouse Electric Company, a division of CBS Corporation, submitted applications for the transfer and/or amendment of each of its authorizing documents (i.e., materials licenses, quality assurance approvals, ad certificates of compliance) to change the name of the Licensee from

" Westinghouse Electric Company, a division of CBS Corporation" to " Westinghouse Electric Company LLC (WELCO)*, or "CBS Corporation", or " Westinghouse Government Services Company LLC (WGS)", as appropriate.

The staff's review of the applications was conducted pursuant to requirements in section 184 of the Atomic Energy Act and 10 CFR 30.34(b),40.46, and 70.36 to ensure there would be no adverse impact on the public health and safety or common defense and security as a result of the change of control of Westinghouse Electric Company's ownership.

The staff also performed a financial review to determine whether the proposed change in Westinghouse Electric Company's ownership will affect its financial resources for protecting the public health and safety, including financial assurance for decommissioning, and the common defense and security. CBS pnvided draft instruments in its applications dated September 28, 1998, and January 18,1999. The review concluded that the proposed change of control will not significantly change the assurance that funds for decommissioning will be available, and protection of public health and safety thereby will not be adversely affected.

I DISCUSSION CBS is selling, with certain exceptions, the assets of its nuclear and government operations  :

business to a consortium of Morrison Knudsen Corp. (MK) and BNFL USA Group, Inc. (BNFL l USA). MK is a U.S. corporation; BNFL USA is a wholly-owned subsidiary of British Nuclear Fuels plc (BNFL), which is wholly owned by the government of the United Kingdom. BNFL USA is incorporated under the laws of Delaware. The MK-BNFL USA consortium has formed three limited liability companies to operate the businesses and assets to be transferred as part of the sale. The proposed transaction would transfer authorizing documents to two of the three companies, WGS and WELCO.

WGS will be 100% owned by MK. BNFL Nuclear Services, Inc., a wholly-owned subsidiary of BNFL USA, will have a passive contractual right to 40% of the profits anc; losses of WGS.

WGS is U.S.-owned and -directed. WELCO will be wholly-owned by BNFL Nuclear Services, 9903240254 990310 E PDR ADOCK 07001151 ;

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Inc. Four of its five directors will be citizens of the United Kingdom. MK has no economic interest in WELCO. In its September 28,1998, application, CBS stated that BNFL will not have access to Restricted Data, classified information, or sensitive nuclear technology. In addition, i the United Kingdom is a signatory to the Nuclear Nonproliferation Treaty and is party to an Agreement for Cooperation with the United States.

The combined requests for transfer and amendment stipulated that the nuclear business of Westinghouse Electric Company, a division of CBS Corporation, that operates under each authorizing document would remain intact and continue with the re-named corporate entity.

There is no change in the management, organization, location, facilities, equipment, or procedures related to or personnel responsible for the licensrd activities. All existing commitments, obligations and representations remain in effect. Where required, each authorizing document, as appropriate, contains a condition regarding the necessity for financial assurance. NRC will hold the licensee responsible for all requirements and conditions of its license, including financial responsibility for decommissioning. CBS will continue to be the l

licensee, to retain responsibility for, and to retain financial responsibility for decommissioning

! and/or decontaminating activities under materials licenses 37-00497-15 (Forest Hills Site) and SMB-1527 (Former Lamp Manufacturing Facility). Based upon CBS' September 28,1998, letter from Louis Briskman, Executive Vice President and General Counsel, included as part of the applications, NRC recognizes that CBS has a contractual agreement with the buyers to l retain financial responsibility for decommissioning and/or decontaminating certain facilities associated with licenses SNM-770 (Waltz Mill Site) and SNM-1460 (Science and Technology Center). ;nsofar as CBS will remain, under the contractual agreement with the buyers, an active participant in the decommissioning and decontamination activities under these licenses, NRC will notify CBS, as well as the licensee, on matters related to decontamination and decommissioning under those two licenses.

Further, each authorizing document requires an official notification of closing which will be incorporated by reference into each license.

ENVIRONMENTAL REVIEW These changes are considered administrative in nature. The staff has determined that the proposed changes do not adversely affect public health and safety or the environment and are categorically excluded from the requirement to prepare a site-specific environmental assessment. Therefore, in accordance with 10 CFR 51.22(c)(11), neither an environmental assessment nor an environmental impact statement is warranted for this action.

.QONCLUSION Based on the above, the staff has determined that the requested transfer and name change amendments are' acceptable, are in accordance with requirements in section 184 of the Atomic Energy Act and 10 CFR 30.34(b),40.46, and 70.36, and would not be inimical to the common defense and security or to the health and safety of the public. Change of control of the licensee does not change the license. The proposed change in controlis effected by a change in Westinghouse Electric Company's ownership through a transfer of assets. There will be no changes in the current license conditions covering the existing health and safety program; professional qualifications of personnel, including safety personnel; equipment and facilities; or any other existing license requirements and conditions of the license.

The Region I and ll project inspectors have no objection to the proposed actions.

Principal Contributors Charles Gaskin Harry Felsher r , i l ,, /

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I-f 6-ENCLOSURE 3. REVISED MATERIALS LICENSES, QA APPROVALS, AND CERTIFICATES OF COMPLIANCE TABLE OF CONTENTS MATERIALS LICENSES, OA APPROVALS, AND CERTIFICATES OF ATTACHMENT COMPLIANCE NUMBER License Number 37-00497-15, Forest Hills Site 1 i

License Number SMB-1527, Former Lamp Manufacturing Facility 2 License Number SNM-1151, Columbia Fuel Fabrication Facility 3 License Number SNM-770, Waltz Mill Site 4 Lhense Number SNM-1460, Science & Technology Center 5 License Number 37 05809-01, Pump Repair Facility, Cheswick, PA 6 License Number 37-05809-02, Industrial Radiography Facility, Cheswick, PA 7 License Number SNM-1120, former Westinghouse Plutonium Operations 8 Transportation Quality Assurance Approval, License Number QAA-0638 9 10 i Transportation Quality Assurance Approval, License Number OAA-0708 Super Tiger, Model No. 6400, License Number COC-6400 11 New Fuel Shipping Container, MCC Series, License Number COC-9239 12 Irradiated Fuel Storage Cask - MC-10, License Number COC-1001 13 m

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