United States Nuclear Regulatory Commission - Protecting People and the Environment

U.S. Nuclear Regulatory Commission

Authorizations Under 10 CFR 40.22, General License

HPPOS-200 PDR-9111210337

Title: Authorizations Under 10 CFR 40.22, General License

See the memorandum from J. Hickey to files dated September

3, 1986. 10 CFR 40.22 allows each facility of the same

company to possess and/or manufacture up to 15 pounds of

source material under a general license. A general

licensee does not need an exempt distribution ("E") license

to distribute exempt products. Receivers of products from

a general licensee may or may not be licensed.

On August 26, 1986, discussions were held with the Office

of General Counsel concerning the provisions of 10 CFR

Section 40.22, "Small quantities of source material", and

how it would apply to a manufacturer operating multiple

facilities. Section 40.22 allows organizations (but not

individuals) to possess up to 15 pounds of source material

(thorium or natural uranium) under general license, subject

to restrictions. A summary of the issues discussed is

provided below:

1. If a company operates several facilities in several

locations, can each facility possess up to 15 pounds of

source material under general license?

Yes. NRC has normally considered separate facilities to be

separate general licensees, even if both facilities are in

different parts of the same city. By the same token, a

separate facility can be a general licensee and be covered

by the exemption in 40.22 (b), even if the same company

holds a specific Part 40 license at another facility.

2. Does Section 40.22 allow manufacturing of products

containing source material?

Section 40.22 does not appear to have originally intended

to authorize manufacturing. However, the regulation is so

broad, allowing "commercial or operational" use, that NRC

has interpreted it to allow manufacturing.

3. Do persons who receive products from a general

licensee have to be licensed?

It depends on the product. A customer can receive an

exempt product (such as a gas mantel or a lamp) without a

license, or may qualify for the general license to possess

a non-exempt product.

4. Do general licensees distributing exempt products

have to have an exempt distribution ("E") license?

No. Section 40.13 allows transfer of exempt products and

does not prohibit commercial distribution (as opposed to

30.18 (c), which prohibits unlicensed commercial

distribution of exempt quantities of byproduct material).

Although 40.13 does not appear to have been intended to

allow exempt commercial distribution, its wording allows

it. Section 40.13 does prohibit manufacturing, which must

be covered by a general (40.22) license or specific license.

Regulatory references: 10 CFR 40.22

Subject codes: 11.2, 11.6

Applicability: Source Material

Page Last Reviewed/Updated Thursday, March 29, 2012