United States Nuclear Regulatory Commission - Protecting People and the Environment

U.S. Nuclear Regulatory Commission

Implementation of Policy and Guidance Directive FC 86-2, Revision 1, "Processing Material License Applications Involving Change of Ownership"

HPPOS-257 PDR-9306070100

Title: Implementation of Policy and Guidance Directive FC

86-2, Revision 1, "Processing Material License Applications

Involving Change of Ownership"

See the memorandum from J. E. Glenn to C. J. Holloway dated

August 18, 1989, and the enclosed Policy and Guidance

Directive, FC 86-2, Rev. 1. This guidance document changed

NMSS policy regarding the issuance of new licenses because

of change of ownership of licensed facilities. The new

policy states that only an amendment is necessary to

reflect the change in identity of the licensee in such a

case. HPPOS-124 contains a related topic.

10 CFR Part 30, Section 30.34 (b) states: "No license

issued or granted pursuant to the regulations in this part

and Parts 31 through 35, nor any right under a license

shall be transferred, assigned or in any manner disposed

of, either voluntary or involuntary, directly or

indirectly, through transfer of control of any license to

any person, unless the Commission shall, after securing

full information, find that the transfer is in accordance

with the provisions of the Act and shall give its consent

in writing."

Similar regulations are contained in 10 CFR Sections 40.46

and 70.36. Thus, the regulations are very clear that the

control of licenses cannot be transferred without written

permission from the Commission. The burden of adhering to

this requirement is on the transferor; however, it may be

necessary for the transferee to provide supporting

information. The transferor is an NRC licensee that is

selling or otherwise giving up control of a licensed

operation, and the transferee is an organization that is

proposing purchase or otherwise gaining control of an

NRC-licensed operation.

FC 86-2, Rev. 1, changed NMSS policy regarding the issuance

of new licenses because of change of ownership of licensed

facilities. Previous policy required, in part, that a new

license be issued if the transferor would remain in

business as a separate entity. The new policy state that

only an amendment is necessary to reflect the change in

identity of the licensee to a transferee in such a case.

This policy reflects the appropriate level of review to

assure that health and safety issues are resolved.

However, there will be times when for NRC's administrative

purposes a new license number will need to be issued. The

middle five digits of a byproduct license are referred to

as an institution code. The institution code identifies

both the licensed entity and a site of operations. Several

licenses may be issued using the same institution code. The

use of the same institution code for two separate and

currently existing entities would defeat the usefulness of

this administrative system.

Therefore, NMSS and the Regions will sometimes be issuing

new license numbers (institution codes) for licensing

actions which, in fact, are amendments to an existing

license. There will be no increase in the technical

review. The License Tracking System will only permit such

an action to be treated as an issuance of a new license. A

fee for an amendment rather than a fee for a new license

will be charged in those instances where NMSS or the

Regions issue a new license for administrative purpose

only. This will save time of both are respective staffs

that would otherwise be required to approve these as

exceptions on a case-by-case basis.

Regulatory references: 10 CFR 30.34, 10 CFR 40.46, 10 CFR

70.36

Subject codes: 3.5, 11.2, 11.6, 11.7

Applicability: All

Page Last Reviewed/Updated Thursday, March 29, 2012