In the Matter of Airgas Specialty Gases, Inc.; Order Approving Direct and Indirect Transfers of Control of License, 22676-22677 [2017-09985]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 82, Number 94 (Wednesday, May 17, 2017)]
[Notices]
[Pages 22676-22677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09985]


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NUCLEAR REGULATORY COMMISSION

[EA-16-167; Docket Nos. 11006088 and NRC-2017-0114; License No. 
XMAT427]


In the Matter of Airgas Specialty Gases, Inc.; Order Approving 
Direct and Indirect Transfers of Control of License

AGENCY: Nuclear Regulatory Commission.

ACTION: Order; issuance.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
Order approving a request, submitted by Shipping International, Inc. 
(SII), working under a power of attorney signed by Airgas USA, LLC, 
seeking the NRC's consent to the direct and indirect transfers of 
control of Export License XMAT427. In addition, SII requested approval 
of a conforming license amendment to reflect the new name of the holder 
of the license from Airgas Specialty Gases, Inc., to Airgas USA, LLC.

DATES: The Order was issued on April 26, 2017.

ADDRESSES: Please refer to NRC-2017-0114 when contacting the NRC about 
the availability of information for this action. You may obtain 
publicly-available information related to this document using any of 
the following methods:
     Federal Rulemaking Web site: Go to https://www.regulations.gov and search for Docket ID NRC-2017-0114. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: Carol.Gallagher@nrc.gov. For questions about the Order 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section of this document.
     NRC's Agencywide Documents Access and Management System: 
You may obtain publicly-available documents online in the Agencywide 
Documents Access and Management System (ADAMS) Public Documents 
collection at https://www.nrc.gov/reading-rm/adams.html. To begin the 
search, select ``ADAMS Public Documents'' and then select ``Begin Web-
based ADAMS Search.'' For problems with ADAMS, please contact the NRC's 
Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-
4737, or by email to pdr.resource@nrc.gov. The ADAMS accession number 
for each document referenced (if it is available in ADAMS) is provided 
the first time that a document is referenced in this document.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Andrea R. Jones, Office of 
International Programs, telephone: 301-287-9072, email: 
Andrea.Jones2@nrc.gov; U.S. Nuclear Regulatory Commission, Washington, 
DC 20555-0001.

SUPPLEMENTARY INFORMATION: The text of the Order is attached.

    Dated: May 8, 2017.

    For the Nuclear Regulatory Commission.
David L. Skeen,
Acting Director, Office of Internal Programs.

United States of America

U.S. Nuclear Regulatory Commission

In the Matter of Airgas Specialty Gases, Inc.; EA-16-167; Docket No. 
11006088; License No. XMAT427

Order Approving Direct and Indirect Transfers of Control of Export 
License

I.

    As of April 1, 2016, Airgas Specialty Gases, Inc. (``ASG''), a 
Texas corporation and holder of one U.S. Nuclear Regulatory Commission 
(NRC) export license (XMAT427), was merged into Airgas USA, LLC, a 
Delaware limited liability company, with Airgas USA, LLC, being the 
surviving entity and ASG not existing as a separate legal entity after 
the merger. Prior to this restructuring, both ASG and Airgas USA, LLC, 
were subsidiaries of Airgas, Inc. On May 23, 2016, Airgas, Inc. was 
acquired by L'Air Liquide, S.A. (``Air Liquide''), a public company in 
France. American Air Liquide Holdings, Inc. and Air Liquide 
International S.A., which were subsidiaries of Air Liquide before the 
May 23, 2016, acquisition, continued to exist. Following the May 23, 
2016, acquisition, Airgas USA, LLC, remained a wholly-owned subsidiary 
of Airgas, Inc., but Airgas, Inc. became a wholly-owned subsidiary of 
American Air Liquide Holdings, Inc. American Air Liquide Holdings, Inc. 
is owned by American Air Liquide, Inc. (97.33033% ownership) and Carba 
Holdings, AG (2.66967% ownership), both of which are owned by Air 
Liquide International S.A. Air Liquide International S.A. is a direct 
subsidiary of Air Liquide (the ultimate parent company).

II.

    On December 5, 2016, after a review of records associated with 
ASG's indirect and direct transfers of control and records associated 
with the export of nuclear material to China on May 9, 2016, the NRC 
issued a Notice of Violation (NOV) to ASG (Agencywide Documents Access 
and Management System (ADAMS) Accession No. ML16245A279). The NRC 
determined that three violations of NRC requirements occurred. The 
violations involved: (1) The direct transfer of control of XMAT427 
without Commission approval as required by Title 10 of the Code of 
Federal Regulations (10 CFR), Section 110.50(d), and Section 184 of the 
Atomic Energy Act (AEA) of 1954, as amended (42 U.S.C. 2234); (2) the 
indirect transfer of control of XMAT427 without written Commission 
consent as required by Section 184 of the AEA; and (3) the export of 
nuclear material without obtaining a specific license as required by 10 
CFR 110.5. Specifically, 10 CFR 110.50(d) states that a ``specific 
license may be transferred, disposed of or assigned to another person 
only with the approval of the Commission by license amendment.'' 
Section 184 of the AEA states, in part, that no NRC license shall be 
transferred, 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 this Act, and shall give its consent in writing. And 10 
CFR 110.5 states, in part, that no person may export any nuclear 
material listed in 10 CFR 110.9 unless authorized by a general or 
specific license issued under 10 CFR part 110. Because ASG did not 
receive Commission approval, the NRC did not have the opportunity to 
review the planned transfers of control to ensure that the transferee 
possessed the appropriate authority over the license being directly or 
indirectly acquired and controlled. The violations associated with the 
indirect and direct transfers of control of XMAT427, without Commission 
approval, were categorized collectively, in accordance with the NRC 
Enforcement Policy, as a Severity Level IV problem because of the low 
radiological or programmatic significance associated with the 
particular circumstances of the case. Because the activities conducted 
under XMAT427 do not involve the actual storage of licensed material, 
the NRC

[[Page 22677]]

determined that little or no radiological or programmatic safety 
significance resulted from these violations.

III.

    On January 3, 2017, Shipping International, Inc. (SII), working 
under a power of attorney signed by Airgas USA, LLC, responded to the 
NOV, and included (1) the reason for the violation; (2) the corrective 
actions taken; and (3) the date when full compliance will be achieved 
(ADAMS Accession No. ML17006A026). The corrective actions included:
    1. No exports under XMAT427, until written approval has been 
received from the Commission.
    2. Submission of a new application requesting approval for the 
transfers of control and an amendment to reflect the new name of the 
licensee, from ASG to Airgas USA, LLC.
    On January 26, 2017, the NRC responded to SII's January 3, 2017, 
response to the NOV and concluded that the completed and proposed 
actions met the requirements of 10 CFR 2.201 (ADAMS Accession No. 
ML17019A026).

IV.

    By letter dated January 31, 2017, (ADAMS Accession Nos. ML17034A058 
and ML17034A075), as supplemented by information provided via 
electronic communication, draft application, and the attachment dated 
January 4, 2017 (ADAMS Accession No. ML17059D006); electronic 
communication and the attachment dated December 12, 2016 (ADAMS 
Accession No. ML17059D011); electronic communication and the 
attachments dated November 30, 2016 (ADAMS Accession Nos. ML17111A620, 
ML17033A277, and ML17033A281); electronic communication, draft 
application, and the attachment dated September 6, 2016 (ADAMS 
Accession No. ML17059D013); electronic communication and the attachment 
dated August 26, 2016 (ADAMS Accession No. ML17059D012); and electronic 
communication and draft application dated July 29, 2016 (ADAMS 
Accession No. ML17081A278), SII requested approval of the indirect and 
direct transfers of control of XMAT427. In addition, SII requested 
approval of a conforming amendment to reflect the new name of the 
licensee, from ASG to Airgas USA, LLC. SII's request for the NRC's 
consent to the transfers of control was submitted pursuant to Section 
184 of the AEA and 10 CFR 110.50(d).
    The letter from SII requesting NRC approval of the transfers and an 
amendment to export license XMAT427 was made publicly available on the 
NRC's public Web site on February 3, 2017. No requests for a hearing or 
comments were received.
    As previously stated, pursuant to Section 184 of the AEA, no 
license granted under 10 CFR part 110 shall be transferred, assigned, 
or in any manner disposed of, directly or indirectly, through transfer 
of control of any license to any person unless the Commission, after 
securing full information, finds that the transfer is in accordance 
with the provisions of the AEA, and gives its consent in writing. 
Pursuant to 10 CFR 110.50(d), a specific license may be transferred, 
disposed of, or assigned to another person only with the approval of 
the Commission by license amendment. Pursuant to 10 CFR 110.51(a)(1), 
an application requesting amendment of a specific license shall be 
filed on NRC Form 7, ``Application for NRC Export or Import License, 
Amendment, Renewal, or Consent Request(s),'' in accordance with 10 CFR 
110.31 and 110.32, and must specify the grounds for the requested 
amendment.
    The Commission will approve an application for direct and indirect 
transfers of control of a license if the Commission determines that the 
proposed transferee is qualified to hold the license, and that the 
transfers are otherwise consistent with applicable provisions of law, 
regulations, and orders issued by the Commission pursuant thereto. SII, 
acting on behalf of Airgas USA, LLC, has represented that with respect 
to XMAT427, (1) there will be no change in personnel, facilities, 
equipment, or procedures; (2) all records will be kept in the same 
facilities; and (3) the transferee will abide by all constraints, 
conditions, and requirements of the licensed program and will abide by 
the regulations in 10 CFR 110.53. After review of the information in 
SII's request dated January 31, 2017, and relying on SII's statements 
and representations contained in its electronic communications and 
supplemental information, the NRC staff has determined that the 
proposed transferee is qualified to hold the license and that the 
direct and indirect transfers of control are consistent with the 
applicable provisions of the AEA, regulations, and orders issued by the 
Commission. The NRC staff has further determined that the request for 
the proposed conforming license amendment complies with the standards 
and requirements of the AEA, and the NRC's regulations set forth in 10 
CFR part 110. The transfers of control of the license and issuance of 
the conforming license amendment will not be inimical to the common 
defense and security, or to the health and safety of the public, and 
all applicable requirements have been satisfied.

V.

    Accordingly, pursuant to Section 184 of the AEA and 10 CFR 
110.50(d), it is hereby ordered that SII's application regarding the 
transfers of control of the license, as described herein, be approved.
    It is further ordered that the conforming license amendment 
regarding the license transfer shall be issued.
    This Order is effective upon issuance.
    For further details with respect to this Order, see the application 
dated January 31, 2017 (which can be found using ADAMS Accession 
Numbers ML17034A058 and ML17034A075) and SII's supplemental 
communications dated January 4, 2017, December 12, 2016, November 30, 
2016, September 6, 2016, August 26, 2016, and July 29, 2016. These 
documents are available for public inspection at the Commission Public 
Document Room (PDR), located at One White Flint North, Room O1-F21, 
11555 Rockville Pike (first floor), Rockville, MD 20852, and available 
online in the ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. Persons who do not have access to ADAMS or who 
encounter problems in accessing the documents located in ADAMS should 
contact the NRC PDR Reference staff by telephone at 1-800-397-4209, or 
301-415-4737 or by email to pdr@nrc.gov.

    Dated at Rockville, Maryland, this 26th day of April 2017.

    For the Nuclear Regulatory Commission.
Nader L. Mamish,
Director, Office of International Programs.
[FR Doc. 2017-09985 Filed 5-16-17; 8:45 am]
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