ML14129A199

08/06/2010 Letter from Sandra Warren, General Manager of Aerotest Operations, Inc

ML14129A199
Person / Time
Site:	Aerotest
Issue date:	08/06/2010
From:	Warren S Aerotest
To:	NRC/OGC
Tibbetts J
References
Download: ML14129A199 (1)

Text

AEROTEST OPERA INC. 3455 FOSTORIA WAY

• SAN RAMON, CA 94583 * (925) 866-1212

• FAX (925) 866-1716 August 6, 2010 TO OUR VALUED CUSTOMERS:

Re: Closure of Aerotest Operations I am writing on behalf of Aerotest Operations, Inc. ("Aer()tesf') to inform you that, per order of the Federal Government, Ae r otest will likely have to cease operations at its nuclear radiography facility on or shortly after September 13, 2010. As you may be aware, on July 9, 2009, Aerotest was informed by the Director, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission (the "NRC") that, due to concerns regarding the degree offoreign ownership of Aerotest's ul timate parent (a US (DE) corporation listed on the NYSE), the NRC would deny Aerotest's application for renewal of its operating license, effectively requiring Aerotest to divest itself of its nuclear radiography facility.

During the subsequent months, Aerotest has worked with the NRC, other government agencies and private parties to structure a transaction tha t would allow its facility to continue operations.

Most recent! y, Aero test negotiated a letter of intent for the transfer of the facility to another non-destructive testing company. Per an order issued on July 6, 2010, the NRC approved transfer of the license to operate the Aero test facility if Aero test and the

• potential transferee can complete this transaction prior to September 13 , 2010. However , because of the current uncertainty involving the future ability of the U.S. Department of Energy to dispose of the spent nuclear fuel generated at the facility, and, therefore, the difficulty of predicting costs associated with storage of such fuel, the potential transferee is unwilling to go forward with the transaction.

Aerotest has attempted, without success, to reso l ve the spent fuel issue in several ways. Most recently, Aerotest made a proposal to the Departmen t of Defense that it feels would have allowed its nuclear radiography facility to continue operations.

Unfortunately, Aerotest has received no response to this proposal. Consequently, AeroteSt feels that it is prudent to notify you that, barring any intervening government actions , Aerotes t will likely be required to regrettably cease operations at its nuclear radiography facility on or shortly after September 13, 2010. Very truly yours, Sandra Warren General Manager A subsid i ary of Autoliv ASP, INC.