NRC-028 - Letter from Eric J. Leeds, NRC, to Michael Anderson, President, Aerotest Operations, Inc., Denial of License Renewal, Denial of License Transfer, and Issuance of Order to Modify License No. R-98 to Prohibit Operation of the AeroteML14164A727 |
Person / Time |
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Site: |
Aerotest |
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Issue date: |
07/24/2013 |
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From: |
NRC/OGC |
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To: |
Atomic Safety and Licensing Board Panel |
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SECY RAS |
References |
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RAS 26038, ASLBP 14-931-01-LT-BD01, 50-228-LT |
Download: ML14164A727 (5) |
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Category:Legal-Pre-Filed Exhibits
MONTHYEARML14219A7352014-08-0707 August 2014 AOI000R2 - Aerotest Operations, Inc. Revised Hearing Exhibits List (July 18, 2014) ML14199A7432014-07-18018 July 2014 NRC Staff Exhibit List - Revised in the Matter of Aerotest Operations, Inc ML14164A7312014-06-13013 June 2014 NRC-021 - Enclosure, Request for Additional Information Regarding the Indirect License Transfer Aerotest Radiography and Research Reactor Facility Operating License No. R-98 Docket No. 50-228 (Sep. 14, 2012)(REDACTED).. ML14164A7222014-06-13013 June 2014 NRC-024 - Enclosure, Office of Nuclear Reactor Regulation Request for Additional Information Application for Indirect License Transfer of Aerotest Radiography and Research Reactor Facility Operating (Redacted).. ML14164A7292014-06-13013 June 2014 NRC-017 - Enclosure, Required Supplemental Information for the NRC Acceptance Review of the License Transfer Applications Which Was Submitted by Aerotest and Nuclear Labyrinth (July 5, 2012)(ADAMS Accession No. ML121740343)(RAI #1) ML14164A7422014-06-13013 June 2014 NRC-034 - Aerotest Operations, Inc., Aerotest Radiography and Research Reactor (Arrr), Updated Safety Analysis Report (Usar), Revision 0, Docket No. 50-228, License No. R-98 (ADAMS Accession No. ML050680420) (Excerpted) (Arrr USAR) ML14164A7072014-06-13013 June 2014 NRC-001 - Statement of Position (Redacted) ML14164A7082014-06-13013 June 2014 NRC-004 - Statement of Professional Qualifications ML14164A7132014-06-13013 June 2014 NRC-005 - Statement of Professional Qualifications ML14164A7112014-06-13013 June 2014 NRC-006 - Statement of Professional Qualifications ML14164A7102014-06-13013 June 2014 NRC-010 - Appendix a to License No. R-98, Technical Specifications for the Aerotest Radiography and Research Reactor (Arrr) (ADAMS Accession No. ML12214A482) (Arrr TS) ML14167A0012014-06-13013 June 2014 NRC-008 - Letter from Dario Brisighella, President, Aerotest Operations, Inc., and Dr. David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth LLC, to NRC Document Control Desk, Application for Approval of Indirect Transfer (Redacted ML14164A7542014-06-10010 June 2014 NRC-039 - Triga Reactor Fuel Price List (Jan. 2012) (ADAMS Accession No. ML14160B051) ML14219A7372014-05-21021 May 2014 AOI402 - Letter from C. Gratton (NRC) to D. Heacock, President and Chief Nuclear Office, Dominion Energy Kewaunee, Inc., Exemptions from the Requirements of 10 CFR Part 50, Section 50.82(a)(8)(i)(A) and Section 50.75(h)(1)(iv)... ML14164A7552014-05-0606 May 2014 NRC-038 - Email from Tony Veca, General Atomics, to Alexander Adams, NRC, Typical Fuel Prices (May 6, 2014) (ADAMS Accession No. ML14160B044) ML14219A7382014-04-25025 April 2014 AOI401 - Letter from M. Sartain, Vice President Nuclear Engineering, Dominion Energy Kewaunee,Inc., to NRC, Update to Irradiated Fuel Management Plan Pursuant to 10 CFR 50.54(bb), Apr. 25, 2014 (ADAMS Accession No. ML14119A120) ML14164A7462013-08-15015 August 2013 NRC-033 - Letter from Sandra Warren, General Manager, Aerotest Operations, Inc., to Spyros Traiforos, NRC (Aug. 15, 2013) (ADAMS Accession No. ML13247A668) ML14164A7272013-07-24024 July 2013 NRC-028 - Letter from Eric J. Leeds, NRC, to Michael Anderson, President, Aerotest Operations, Inc., Denial of License Renewal, Denial of License Transfer, and Issuance of Order to Modify License No. R-98 to Prohibit Operation of the Aerote ML14164A7242013-07-24024 July 2013 NRC-027 - Safety Evaluation by the Office of Nuclear Reactor Regulation, Indirect License Transfer of Aerotest Radiography and Research Reactor Due to the Proposed Acquisition of Aerotest Operations, Inc. by Nuclear Labyrinth, Llc,(Redacted ML14219A7362013-02-26026 February 2013 AOI400 - Letter from D. Stoddard, Senior Vice President Nuclear Operations, Dominion Energy Kewaunee, Inc., to NRC, Update to Irradiated Fuel Management Plan Pursuant to 10 CFR 50.54(bb), Feb. 26, 2013 (ADAMS Accession No. ML13059A028) ML14164A7322013-01-18018 January 2013 NRC-025 - Summary of December 19, 2012, Meeting with Aerotest Operations, Inc., and Nuclear Labyrinth, LLC, on the Request for Additional Information on the Proposed Indirect License Transfer Application of the Aerotest Radiography.. ML14164A7282013-01-10010 January 2013 NRC-026 - Letter from Jay Silberg, Counsel, Aerotest Operations, Inc., to the NRC Document Control Desk, Response to Request for Additional Information Application for Approval of Indirect Transfer of Control of License of Aerotest (Redacte ML14164A7482013-01-0707 January 2013 NRC-037 - Letter from Gregory Bowman, NRC, to Sandra Warren, General Manager, Aerotest Operations, Inc., NRC Non-Routine Inspection Report No. 50-228/2012-206 (Jan. 7, 2013) (ADAMS Accession No. ML12361A147) ML14164A7362012-12-10010 December 2012 NRC-023 - Letter from Alexander Adams, NRC, to Dario Brisighella, President, Aerotest Operations, Inc., and David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth, LLC, Request for Additional Information Application for Approval.. ML14164A7452012-12-0606 December 2012 NRC-044 - Aerotest Operations, Inc., Consideration of Indirect Transfer and Conforming Amendment, 77 Fed. Reg. 72,889 (Dec. 6, 2012) ML14164A7232012-10-15015 October 2012 NRC-022 - Letter from Jay Silberg, Counsel, Aerotest Operations, Inc., to NRC Document Control Desk, Response to Request for Additional Information Application for Approval of Indirect Transfer of Control of License of Aerotest (Redacted).. ML14164A7302012-09-14014 September 2012 NRC-020 - Letter from Alexander Adams, NRC, to Dario Brisighella, President, Aerotest Operations, Inc., and David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth, LLC, Request for Additional Information Application for Approval.. ML14164A7352012-08-14014 August 2012 NRC-019 - Letter from Alexander Adams, NRC, to Dario Brisighella, President, Aerotest Operations, Inc., and David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth, LLC, Acceptance of Requested License Transfer Application (Aug. 14, ML14164A7522012-08-14014 August 2012 NRC-032 - Letter from Gregory Bowman, NRC, to Sandra Warren, General Manager, Aerotest Operations, Inc., NRC Non-Routine Inspection Report No. 50-228/2012-204 (Aug. 14, 2012) (ADAMS Accession No. ML12213A001) ML14164A7432012-07-31031 July 2012 NRC-035 - Letter from Alfredo Meren, Reactor Supervisor, Aerotest Operations, Inc., to NRC, Annual Summary of Changes, Tests and Experiments at Aerotest Radiography and Research Reactor (Arrr),Docket No.50-228.. ML14164A7262012-07-19019 July 2012 NRC-018 - Letter from Jay Silberg, Counsel, Aerotest Operations, Inc., to NRC Document Control Desk, Response to Request to Aerotest Operations, Inc. and Nuclear Labyrinth LLC to Supplement the License Transfer (Redacted).. ML14164A7502012-07-15015 July 2012 NRC-041 - Note to File from Spyros Traiforos, NRC, Summary of the Informal Conference Call of June 21, 2012, Between Aerotest Operations, Inc./Nuclear Labyrinth, and the NRC (July 15, 2012) (ADAMS Accession No ML12200A353) ML14164A7332012-07-0505 July 2012 NRC-016 - Letter from Jessie Quichocho, NRC, to Dario Brisighella, President, Aerotest Operations, Inc., and David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth,Llc, Request to Aerotest Operations, Inc. and Nuclear Labyrinth Llc. ML14164A7062012-05-30030 May 2012 NRC-007 - Letter from Dario Brisighella, President, Aerotest Operations, Inc., and Dr. David M. Slaughter, Chief Executive Officer, Nuclear Labyrinth LLC, to NRC Document Control Desk, Application for Approval of Indirect Transfer of Contro ML14164A7442012-01-20020 January 2012 NRC-031 - Letter from Sandra Warren, General Manager, Aerotest Operations, Inc., to Spyros Traiforos, NRC (Jan. 20, 2012) (ADAMS Accession No. ML12026A344) ML14164A7252012-01-11011 January 2012 NRC-030 - Letter from Sandra Warren, General Manager, Aerotest Operations, Inc., to Spyros Traiforos, NRC (Jan. 11, 2012) (ADAMS Accession No. ML12018A336) ML14164A7512011-07-28028 July 2011 NRC-043 - Letter from Alfredo Meren, Reactor Supervisor, Aerotest Operations, Inc., to NRC, Annual Summary of Changes, Tests, and Experiments at Aerotest Radiography and Research Reactor (Arrr), Docket No. 50-228.. ML14164A7532011-01-0707 January 2011 NRC-036 - Letter from Michael Anderson, Secretary, Aerotest Operations, Inc., to NRC Document Control Desk, Docket No. 50-228 Aerotest Radiography and Research Reactor License No. R-98 (Jan. 7, 2011)(ADAMS Accession No. ML110180463) ML14199A7412010-10-13013 October 2010 NRC-049 - Letter from Michael S. Anderson, Secretary, Aerotest Operations, Inc. to NRC Report of Progress Made Toward Completion of the License Transfer (Oct. 13, 2010) (ADAMS Accession No. ML102880066) ML14199A7442010-09-27027 September 2010 NRC-048 - Letter from Michael S. Anderson, Secretary, Aerotest Operations, Inc. to NRC, Report of Progress Made Toward Completion of the License Transfer (Sept. 27, 2010) (ADAMS Accession No. ML102720404) ML14164A7492010-08-0606 August 2010 NRC-040 - Letter from Sandra Warren, General Manager of Aerotest Operations, Inc., Closure of Aerotest Operations (Aug. 6, 2010) (ADAMS Accession No. ML14129A199) ML14164A7092004-01-29029 January 2004 NRC-011 - Letter from Michael S. Anderson, Vice President for Legal Affairs and General Counsel, Autoliv,Inc., to David Mathews, Director, NRR, and Marvin Mendonca,Senior Project Manager,Nrr,Nrc, Divestiture Plan Regarding Indirect Transfer ML14164A7162003-12-0404 December 2003 NRC-015 - Letter from Michael Anderson, Vice President for Legal Affairs and General Counsel, Autoliv, to David Mathews, NRC, Divestiture Plan Regarding Indirect Transfer of the Aerotest Radiography and Research Reactor (Arrr).. ML14167A0002003-10-0707 October 2003 NRC-014 - Letter from David B. Matthews, NRC, to Michael Anderson, General Counsel, Autoliv, and Ray R. Tsukimura, President, Aerotest Operations, Inc., Divestiture Plan Regarding Indirect Transfer of the Aerotest Radiography and Research R 2014-08-07
[Table view] |
Text
OFFICIAL USE ONLY PROPRIETARY INFORMATION OFFICIAL USE ONLY PRO PRIETARY INFORMATION July 24, 2013
Mr. Michael Anderson, President Aerotest Operations, Inc.
Autoliv ASP, Inc.
1320 Pacific Drive Auburn Hills, MI 48326
SUBJECT:
AEROTEST OPERATIONS, INC. - DENIAL OF LICENSE RENEWAL, DENIAL OF LICENSE TRANSFER, AND ISSUANCE OF ORDER TO MODIFY LICENSE NO. R-98 TO PROHIBIT OPERATION OF THE AEROTEST RADIOGRAPHY AND RESEARCH REACTOR, FACILITY OPERATING LICENSE NO. R
-98 (TAC NO S. ME8811 AND MC9596)
Dear Mr. Anderson:
Th e U.S. Nuclear Regulatory Commission (NRC or Commission) staff has reviewed Aerotest Operations, Inc.'s (Aerotest or the licensee) application for license renewal and request for consent to transfer the license to Nuclear Labyrinth, LLC, and hereby denies the license renewal application for Facility Operating License No. R-98 and hereby denies the application to transfer the license to Nuclear Labyrinth, LLC. The NRC is issuing the enclosed Order, "Order Prohibiting Operation of Aerotest Radiography and Research Reactor, Facility Operating License No. R
-98" to Aerotest, to prohibit operation of the Aerotest Radiography and Research Reactor (ARRR).
By application dated February 28, 2005, supplemented by letters dated May 5, 2008; March 9, July 21, and September 4, 2009; and January 7, 2010, available in the Agencywide Documents Access and Management System (ADAMS) Accession Nos.
ML13120A434, ML103370137, ML120900629, ML092080163, ML092600267, ML100140375, respectively, Aerotest applied for renewal of Facility Operating License No. R-98. The NRC is denying license renewal because the NRC staff determined that Aerotest failed to satisfy the requirements of Atomic Energy Act (AEA) Section 104d., "Medical Therapy and Research and Development," and the regulations in Title 10 of the Code of Federal Regulations (10 CFR) Section 50.38, "Ineligibility of Certain Applicants." These requirements prohibit the issuance of any license for a utilization or production facility "if the Commission knows or has reason to believe [it] is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government."
The NRC staff has determined that Aerotest was acquired through intermediate corporate acquisitions by Autoliv, Inc. (Autoliv) which is Aerotest's ultimate corporate parent. Autoliv, although incorporated in Delaware, is headquartered in Stockholm, Sweden, and the majority of its board of directors and executive officers are non
-U.S. citizens.
In addition, the majority of its outstanding stock is held by non
-U.S. citizens. Thus, Autoliv is a foreign corporation and its ownership of Aerotest is prohibited by the AEA, Section 104d. and 10 CFR 50.38.
NOTE: ENCLOSURE 1 TRANSMITTED HEREWITH CONTAINS PROPRIETARY INFORMATION. WHEN SEPARATED FROM ENCLOSURE 1 THIS DOCUMENT IS DECONTROLLED.
OFFICIAL USE ONLY PRO PRIETARY INFORMATION OFFICIAL USE ONLY PRO PRIETARY INFORMATION Consequently, the reactor owned by Aerotest is under foreign ownership, control, or domination by Autoliv, which is prohibited by Section 104d. Therefore, the application for renewal of Facility Operating License No. R-98 is denied.
To comply with the requirements of the above statute and regulation, Aerotest attempted to divest itself of its foreign ownership, control, or domination. On May 30, 2012 , Aerotest and Nuclear Labyrinth, LLC (the applicants) submitted an application for an indirect license transfer (ADAMS Accession Nos.
ML12152A233 and ML12180A384). The NRC staff requested supplemental information on July 5, 2012 (ADAMS Accession Nos.
ML121740317 and ML121740343), and received responses on July 19, 2012 (ADAMS Accession No. ML122021201). The NRC staff accepted the application for review on August 14, 2012 (ADAMS Accession No.
ML12213A486). On September 14, 2012, t he NRC staff issued a request for additional information (RAI) regarding financial qualifications (ADAMS Accession Nos. ML12242A460 and ML12242A479). The applicants responded on October 15, 2012 (ADAMS Accession No.
ML12291A508), but did not adequately demonstrate financial assurance. On December 10, 2012, the NRC staff issued another RAI (ADAMS Accession Nos. ML12339A181 and ML12339A189), which was discussed in a public meeting on December 19, 2012 (ADAMS Accession No.
ML13018A003). The purpose of the public meeting was to ensure that the applicants understood the financial assurance requirements for license transfer approval. The applicants responded to the RAI on January 10, 2013 (ADAMS Accession No.
ML13015A395).
is the NRC staff's non
-public safety evaluation of the indirect license transfer request (enclosure 2 is the public version located under ADAMS Accession No.
ML13129A001). The NRC staff has concluded that the NRC does not have reasonable assurance, as required by 10 CFR 50.33, that Nuclear Labyrinth, LLC, would have sufficient funding to conduct the activities authorized by the ARRR license if the license were transferred.
Therefore, the request for transfer of Facility Operating License No. R-98 to Nuclear Labyrinth, LLC, is denied.
Aerotest remains under foreign ownership, control, or domination and therefore is in violation of Section 104d. of the AEA and 10 CFR 50.38.
Because the NRC staff is denying the license transfer and license renewal, the NRC is issuing the enclosed Order modifying the facility operating license (enclosure 3).
The Order prohibit s Aerotest from operating the ARRR and requires the ARRR be maintained in a shutdown condition.
The Order requires Aerotest to submit, within 30 days, an updated decommissioning plan that contains a decommissioning funding plan, and a fuel management plan that describes the means for funding the management of the fuel until permanent disposal.
In accordance with 10 CFR 2.103(b), you have the right to demand a hearing on the license transfer denial and license renewal denial within 20 days of the date of this letter.
If you request an adjudicatory hearing pursuant to 10 CFR 2.103(b)(2) based on the denial contained in this letter, submit your request electronically through the NRC's E
-Filing system in accordance with the requirements of 10 CFR 2.302(a) through (g).
OFFICIAL USE ONLY PRO PRIETARY INFORMATION OFFICIAL USE ONLY PRO PRIETARY INFORMATION 10 CFR 2.302(a) states:
(a) Documents filed in Commission adjudicatory proceedings subject to this part shall be electronically transmitted through the E
-Filing system, unless the Commission or presiding officer grants an exemption permitting an alternative filing method or unless the filing falls within the scope of paragraph (g)(1) of this section [i.e., information that may not be transmitted electronically for security or other reasons].
In addition, 10 days before the date your request for hearing is du e, you must request a digital ID certificate from the NRC in order to access the Electronic Information Exchange (EIE) system. The instructions for obtaining a digital certificate are found in 10 CFR 2.302(f) and on the NRC Web site at: http://www.nrc.gov/site
-help/e-submittals.html.
Refer to the Order for instructions on requesting a hearing withi n 20 days from the date of the Order pursuant to 10 CFR 2.202, "Orders." In accordance with 10 CFR 2.390 and the NRC's "Rules of Practice," a copy of this letter and its public enclosure(s) will be made available electronically for public inspection in the NRC Public Document Room or in ADAMS, accessible through the NRC Web site at http://www.nrc.gov/reading
-rm/adams.html
. The NRC also makes significant enforcement actions available on its Web site at http://www.nrc.gov/reading-rm/doc-collections/enforcement/actions/. Enclosed is a copy of the Order which is being sent to the Federal Register for publication.
Please contact Spyros Traiforos by phone at 301
-415-3965 or by e
-mail at Spyros.Traiforos@nrc.gov should you have any questio n s. Sincerely, /RA/ Eric J. Leeds, Director Office of Nuclear Reactor Regulation
Docket No. 50
-228
Enclosures:
- 1. Non-Public Safety Evaluation
- 2. Public Safety Evaluation
- 3. Order cc w/encl 2 & 3: See next page Aerotest Operations, Inc.
Sandy Warren, General Manager Aerotest Operations, Inc.
3455 Fostoria Way San Ramon, CA 94583 California Energy Commission 1516 Ninth Street, MS
-34 Sacramento, CA 95814 Radiologic Health Branch P.O. Box 997414, MS 7610 Sacramento, CA 95899
-7414 Test, Research, and Training Research Newsletter University of Florida 202 Nuclear Sciences Center Gainesville, FL 32611
Pillsbury Winthrop Shaw Pittman LLP ATTN: Jay Silberg 2300 N Street, NW Washington, DC 20037
-1122 Pillsbury Winthrop Shaw Pittman LLP ATTN: Kimberly Harshaw 2300 N Street, NW Washington, DC 20037
-1122
PKG: ML13120A593, LTR: ML13120A598, Non Public Safety Evaluation: ML13128A403, Public Safety Evaluation: ML13129A001, FRN: ML13120A607 ADM MEMO: ML13128A167, ORDER: ML13158A164 NRR-106