ML19316B328
| ML19316B328 | |
| Person / Time | |
|---|---|
| Issue date: | 12/09/2019 |
| From: | Maureen Wylie NRC/OCFO |
| To: | Yarab G ConformaTech |
| TAW | |
| References | |
| Download: ML19316B328 (3) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 December 9, 2019 Mr. Gerry Yarab, President ConformaTech, Inc.
1425 E. Apache Park Place Tucson, AZ 85714
Dear Mr. Yarab:
On behalf of the Nuclear Regulatory Commission (NRC), I am responding to your letter dated October 21, 2019 (Agencywide Documents Access and Management System Accession Number ML19310E864), requesting an exemption under Section 171.11(e)(3) of Title 10 of the Code of Federal Regulations (10 CFR). You assert that, because you submitted your official termination request on October 3, 2019, assessment of one-half of the annual fee for fiscal year (FY) 2020 is not a fair and equitable allocation of NRC costs.
In your letter, you note that ConformaTech contacted the NRC through email about terminating License No. 02-29222-01 since early spring and did not realize that you were required to submit a formal request for termination before October 1, 2019, to avoid additional fees. In addition, you state that the October due date was not discussed during an email exchange with the NRC on September 9, 2019. The NRC received your official termination request on October 3, 2019.
The NRC has an established procedure for waiving an annual fee upon termination of a materials license. This procedure is set forth in Footnote 1 of 10 CFR 171.16, Annual fees:
Materials licensees, holders of certificates of compliance, holders of sealed source and device registrations, holders of quality assurance program approvals, and government agencies licensed by the NRC,, which provides as follows:
Annual fees will be assessed based on whether a licensee held a valid license with the NRC authorizing possession and use of radioactive material during the current FY. The annual fee is waived for those materials licenses and holders of certificates, registrations, and approvals who either filed for termination of their licenses or approvals or filed for possession only/storage licenses before October 1 of the current FY, and permanently ceased licensed activities entirely before this date. Annual fees for licensees who filed for termination of a license, downgrade of a license, or for a possession-only license during the FY and for new licenses issued during the FY will be prorated in accordance with the provisions of §171.17. If a person holds more than one license, certificate, registration, or approval, the annual fee(s) will be assessed for each license, certificate, registration, or approval held by that person. For licenses that authorize more than one activity on a single license (e.g., human use and irradiator activities), annual fees will be assessed for each category applicable to the license.
G. Yarab Based on the provision above, when you hold a license during the current FY, fees are incurred irrespective of whether licensed materials are in use. The proration provision in 10 CFR 171.17(b)(2) provides that licenses for which applications for termination or possession only license are filed during the period October 1 through March 31 of the FY are assessed one-half the annual fee for the applicable category(ies) for that FY. Thus, ConformaTech, Inc.,
would be responsible for payment of one-half of the annual fee for FY 2020.
However, under 10 CFR 171.11(e), the NRC may grant a materials licensee an exemption from the annual fee if it determines that the annual fee is not based on a fair and equitable allocation of the NRC costs. In making this determination, the NRC may consider any relevant matter that shows that the annual fee was not based on a fair and equitable allocation of NRC costs, 10 C.F.R. § 171.11(e)(3). Based on your continued commitment to terminate your NRC license starting with your May 17, 2019, email to the NRC Region IV staff requesting the NRC to discontinue your license, I am granting your request for an exemption from the FY 2020 annual fees upon completion of the termination of NRC License No. 02-29222-01.
Please contact Mr. William Blaney at 301-415-5092 or Ms. Jo Jacobs, of my staff, at 301-415-8388 for any fee related questions.
Sincerely,
/RA/
Maureen E. Wylie Chief Financial Officer
Letter: ML19316B328 Package: ML19316B230 Incoming: ML19310E864 *via e-mail CFO-0009 OFFICE OCFO/DPB/LFPT OCFO/DPB/LFPT OGC OCFO/DOC/LAFB OCFO/DOC/LAFBB NAME WBlaney JJacobs CMcCann*NLO JGibbs-Nicholson* MBlair* JGibbs-Nicholson for DATE 11/12/2019 11/12/2019 11/27/2019 12/04/2019 12/04/2019 OFFICE OCFO/DPB/LFPT OCFO/DPB OCFO/DPB DCFO CFO NAME ARossi MSampson JShay BFicks MEWylie DATE 12/4/19 12/5/19 12/9/19 12/9/19 12/9/19