§ 72.35 Changes, tests and experiments. (a)(1) The holder of a license issued under this part may, without prior Commission approval unless the proposed change, test or experiment involves a change in the license conditions incorporated in the license, an unreviewed safety question, significant increase in occupational exposure or a significant unreviewed environmental impact: (i) Make changes in the ISFSI described in the Safety Analysis Report, (ii) make changes in the procedures described in the Safety Analysis Report, or (iii) conduct tests or experiments not described in the Safety Analysis Report.

(2) A proposed change, test, or experiment shall be deemed to involve an unreviewed safety question: (i) If the probability of occurrence or the consequences of an accident or malfunction of equipment important to safety previously evaluated in the Safety Analysis Report may be increased; (ii) if a possibility for an accident or malfunction of a different type than any evaluated previously in the Safety Analysis Report may be created; or (iii) if the margin of safety as defined in the basis for any technical specification is reduced.

(b)(1) The licensee shall maintain records of changes in the ISFSI and of changes in procedures made pursuant to this section if such changes constitute changes in the ISFSI or procedures described in the Safety Analysis Report. The licensee shall also maintain records of tests and experiments carried out pursuant to paragraph (a) of this section. These records shall include a written safety evaluation that provides the bases for the determination that the change, test, or experiment does not involve an unreviewed safety question. The records of changes in the ISFSI and of changes in procedures and records of tests

shall be maintained for the lifetime of the ISFSI.

(2) Annually, or at such shorter interval as may be specified in the license, the licensee shall furnish to the appropriate regional office, specified in Appendix D of Part 20 of this chapter, with a copy to the Director. Office of Nuclear Material and Safeguards, a report containing a brief description of such changes, tests, and experiments, including a summary of the safety evaluation of each. Any report submitted by a licensee pursuant to this paragraph will be made a part of the public record pertaining to this license.

(c) The holder of a license issued under this part who desires (1) to change the license conditions, (2) to change the ISFSI or the procedures described in the Safety Analysis Report, or (3) to conduct tests or experiments not described in the Safety Analysis Report that involve an unreviewed safety question, a significant increase in occupational exposure, or significant unreviewed environmental impact, shall submit an application for amendment of the license, pursuant to $ 72.39 of this part.

(a) No license or any right included in a license issued under this part shall be transferred, assigned, or in any manner disposed of, either voluntarily or involuntarily, directly or indirectly, through transfer of control of the license to any person, unless the Commission gives its consent in writing.

(b)(1) An application for transfer of a license shall include as much of the information described in §§ 72.14 and 72.17 of this part with respect to the identity and the technical and financial qualifications of the proposed transferee as would be required by those sections if the application were for an initial license. The application shall also include a statement of the purposes for which the transfer of the license is requested and the nature of the transaction necessitating or making desirable the transfer of the li

cense.

(2) The Commission may require any person who submits an application for the transfer of a license pursuant to the provisions of this section to file a written consent from the existing licensee, or a certified copy of an order or judgment of a court of competent jurisdiction, attesting to the person's right—subject to the licensing requirements of the Act and these regulations-to possession of the spent fuel and the ISFSI involved.

(c) After appropriate notice to interested persons, including the existing licensee, and observance of such procedures as may be required by the Act or regulations or orders of the Commission, the Commission will approve an application for the transfer of a license, if the Commission determines:

(1) That the proposed transferee is qualified to be the holder of the license; and

(2) That transfer of the license is consistent with applicable provisions of the law, and the regulations and orders issued by the Commission pursuant thereto.

$ 72.37 Creditor regulations.

(a) Pursuant to section 184 of the Act, the Commission consents, without individual application, to the creation of any mortgage, pledge, or other lien on special nuclear material contained in spent fuel not owned by the United States that is the subject of a license or on any interest in such special nuclear material in spent fuel: Provided:

(1) That the rights of any creditor so secured may be exercised only in compliance with and subject to the same requirements and restrictions as would apply to the licensee pursuant to the provisions of the license, the Atomic Energy Act of 1954, as amended, and regulations issued by the Commission pursuant to said Act; and

(2) That no creditor so secured may take possession of the spent fuel pursuant to the provisions of this section prior to either the issuance of a license from the Commission authorizing such possession or the transfer of the license.

(b) Any creditor so secured may apply for transfer of the license covering such spent fuel by filing an application for transfer of the license pur

suant to § 72.36(b). The Commission will act upon such application pursuant to $72.36(c).

(c) Nothing contained in this regulation shall be deemed to affect the means of acquiring, or the priority of. any tax lien or other lien provided by law.

(d) As used in this section, "creditor" includes, without implied limitation. the trustee under any mortgage, pledge, or lien on spent fuel in storage made to secure any creditor; any trustee or receiver of such spent fuel appointed by a court of competent jurisdiction in any action brought for the benefit of any creditor secured by such mortgage, pledge, or lien; any purchaser of such spent fuel at the sale thereof upon foreclosure of such mortgage, pledge, or lien or upon exercise of any power of sale contained therein; or any assignee of any such purchaser.

$72.38 Applications for termination of li

censes.

(a) The licensee shall apply to the Commission for authority to surrender a license voluntarily and to decommission the ISFSI and dispose of the materials stored therein. The Commission may require information, including information as to proposed procedures for the disposal of radioactive material and decontamination of the site, to determine whether there is reasonable assurance that the decommissioning and disposal will be performed in accordance with the regulations in this chapter and will not be inimical to the common defense and security or to the health and safety of the public.

(b) Upon a finding of reasonable assurance that the decommissioning of the ISFSI and disposal of the materials stored therein will be performed in accordance with the regulations in this chapter and will provide adequate protection to the health and safety of the public, and after notice to interested persons, the Commission will authorize such decommissioning and disposal and terminate the license upon completion of such procedures in accordance with any conditions specified in the authorization.

[45 FR 74699, Nov. 12, 1980; 45 FR 80271. Dec. 4, 1980]

$ 72.39 Application for amendment of li

cense.

Whenever a holder of a license desires to amend the license, an application for an amendment shall be filed with the Commission fully describing the changes desired and the reasons for such changes, and following as far as applicable the form prescribed for original applications.

§ 72.40 Issuance of amendment.

In determining whether an amendment to a license will be issued to the applicant, the Commission will be guided by the considerations that govern the issuance of initial licenses.

§ 72.41 Modification, revocation, and supension of licenses.

(a) The terms and conditions of all licenses are subject to amendment, revision, or modification by reason of amendments to the Atomic Energy Act of 1954, or by reason of rules, regulations, or orders issued in accordance with the Act or any amendments thereto.

(b) Any license may be modified, revoked, or suspended in whole or in part for any of the following: (1) For any material false statement in the application or in any statement of fact required under section 182 of the Act; (2) conditions revealed by such application or statement of fact or any report, record, inspection or other means which would warrant the Commission to refuse to grant a license on an original application; (3) failure to operate an ISFSI in accordance with the terms of the license; (4) violation of, or failure to observe any of, the terms and conditions of the Act, or of any applicable regulation, license, or order of the Commission.

(c) Upon revocation of a license, the Commission may immediately cause the retaking of possession of all special nuclear material contained in spent fuel held by the licensee. In cases found by the Commission to be of extreme importance to the national defense and security or to the health and safety of the public, the Commission prior to following any of the pro

cedures provided under sections 551558 of title 5 of the United States Code, may cause the taking of possession of any special nuclear material contained in spent fuel held by the li

censee.

§ 72.42 Backfitting.

(a) The Commission may require the backfitting of an ISFSI if it finds that such action will provide substantial additional protection to the environment, or occupational or public health and safety. As used in this section. "backfitting" means the addition. elimination, or modification of structures, systems, or components of an ISFSI after the license has been issued.

(b) The Commission may at any time require a holder of a license to submit such information concerning the backfitting or the proposed backfitting of the ISFSI as it deems appropriate.

Subpart D-Records, Reports, Inspections, and Enforcement

§ 72.50 Safety analysis report updating. (a) The design, description of planned operations, and other information submitted in the Safety Analysis Report shall be updated by the licensee and submitted to the Commission at least once every six months after issuance of the license during final design and construction, until preoccupational testing is completed. with final completion and submittal to the Commission at least 90 days prior to the planned receipt of spent fuel. This final submittal shall include a final analysis and evaluation of the design and performance of structures. systems, and components that are important to safety taking into account any pertinent information developed since the submittal of the license application. Changes affecting safety margins will require Commission approval prior to the receipt of spent fuel.

(b) After the first receipt of spent fuel for storage, the Safety Analysis Report shall be updated annually and submitted to the Commission by the

licensee. This submittal shall include the following:

(1) New or revised information relating to applicable site evaluation factors, including the results of environmental monitoring programs.

(2) A description and analysis of changes in the structures, systems, and components of the ISFSI, with emphasis upon (i) performance requirements, (ii) the bases, with technical justification therefor, upon which such requirements have been established, and (iii) evaluations showing that safety functions will be accomplished.

(3) An analysis of the significance of any changes to codes, standards, regulations, or regulatory guides which the licensee has committed to meeting the requirements that are applicable to the design, construction, or operation of the ISFSI.

§ 72.51 Material balance, inventory, and records requirements for stored materials.

(a) Each licensee shall keep records showing the receipt, inventory (including location), disposal, acquisition, and transfer of all spent fuel in storage.

(b) Each licensee shall conduct a physical inventory of all spent fuel in storage at intervals not to exceed twelve months unless otherwise directed by the Commission.

(c) Each licensee shall establish, maintain, and follow written material control and accounting procedures that are sufficient to enable the licensee to account for the spent fuel in storage.

(d) Records of spent fuel in storage shall be kept in duplicate. The duplicate set of records shall be kept at a separate location sufficiently remote from the original records that a single event would not destroy both sets of records. Records of spent fuel transferred out of an ISFSI shall be preserved for a period of five years after the date of transfer.

$ 72.52 Reports of accidental criticality or loss of special nuclear material. Each licensee shall report immediately to the appropriate NRC regional Office specified in Appendix D of Part 20 of this chapter by telephone and

telegram or teletype, any case of accidental criticality and any loss of special nuclear material.

§ 72.53 Material status reports.

(a) Except as provided in paragraph (b) of this section, each licensee shall complete and submit Material Status Reports to the Commission on Form NRC-742, in accordance with printed instructions for completing the form. The reports shall provide information concerning the special nuclear material contained in spent fuel possessed, received, transferred, disposed of, or lost by the licensee. All such reports shall be made as of March 31 and September 30 of each year and shall be filed with the U.S. Department of Energy, P.O. Box E, Oak Ridge, Tennessee 37830, within 30 days after the end of the period covered by the report. The Commission may, when good cause is shown, permit a licensee to submit Material Status Reports at other times.

(b) Any licensee who is required to submit routine material status reports pursuant to § 75.35 of this chapter (pertaining to implementation of the US/IAEA Safeguards Agreement) shall prepare and submit such reports only as provided in that section.

[46 FR 36119, July 14, 1981]

§ 72.54 Nuclear material transfer reports.

(a) Except as provided in paragraph (b) of this section, whenever the licensee transfers or receives spent fuel, the licensee shall complete and distribute a Nuclear Material Transaction Report on Form NRC-741. Each licensee who transfers spent fuel shall submit a copy of Form NRC-741 to the U.S. Department of Energy, P.O. Box E, Oak Ridge, Tennessee 37830, and three copies to the receiver of the material promptly after the transfer takes place. Each licensee who receives spent fuel shall submit a copy of Form NRC-741 to the Department of Energy and to the shipper of the material within 10 days after the spent fuel is received and unloaded and its identity is verified.

(b) Any licensee who is required to submit inventory change reports on DOE/NRC Form-741 pursuant to

90-029 0-82--37

$75.34 of this chapter (pertaining to implementation of the US/IAEA Safeguards Agreement) shall prepare and submit such reports only as provided in that section.

[46 FR 36119. July 14, 1981]

§ 72.55 Other records and reports.

(a) Each licensee shall maintain any records and make any reports that may be required by the conditions of the license or by the rules, regulations, and orders of the Commission in effectuating the purposes of the Act.

(b) Each licensee shall furnish a copy of its annual financial report, including the certified financial statements, to the Commission.

(c) Records that are required by the regulations in this part or by the license conditions shall be maintained for the period specified by the appropriate regulation or license condition. If a retention period is not otherwise specified, such records shall be maintained until the Commission authorizes their disposition.

(d) Any record that must be maintained pursuant to this part may be either the original or a reproduced copy or microform provided that any reproduced copy or microform is duly authenticated by authorized personnel and that the microform is capable of producing a clear and legible copy after storage for the period specified by commission regulations.

[45 FR 74699, Nov. 12, 1980; 45 FR 80271, Dec. 4, 1980]

$ 72.56 Inspections and tests.

(a) Each licensee under this part shall permit inspection by duly authorized representatives of the Commission of his records, premises, activities and of spent fuel in possession related to the specific license as may be necessary to effectuate the purposes of the Act, including section 105 of the Act.

(b) Each licensee under this part shall make available to the Commission for inspection, upon reasonable notice, records kept by the licensee pertaining to his receipt, possession, or transfer of spent fuel.

(c)(1) Each licensee under this part shall upon request by the Director,

Office of Inspection and Enforcement provide rent-free office space for the exclusive use of the Commission inspection personnel. Heat, air condi tioning, light, electrical outlets and janitorial services shall be furnished by each licensee. The office shall be convenient to and have full access to the installation and shall provide the inspector both visual and acoustic privacy.

(2) For a site with a single storage installation the space provided shall be adequate to accommodate a fulltime inspector, a part-time secretary and transient NRC personnel and will be generally commensurate with other office facilities at the site. A space of 250 sq. ft.. either within the site's office complex or in an office trailer. or other on site space, is suggested as a guide. For sites containing multiple facilities additional space may be requested to accommodate additional full-time inspectors. The office space that is provided shall be subject to the approval of the Director, Office of Inspection and Enforcement. All furniture, supplies and Commission equipment shall be furnished by the Commission.

(3) Each licensee under this part shall afford any NRC resident inspector assigned to that site, or other NRC inspectors identified by the Regional Director as likely to inspect the installation, immediate unfettered access. equivalent to access provided regular plant employees, following proper identification and compliance with applicable access control measures for security, radiological protection and personal safety.

(d) Each licensee shall perform, or permit the Commission to perform. such tests as the Commission deems appropriate or necessary for the administration of the regulations in this part.

(e) A report of the preoperational test acceptance criteria and test results shall be submitted to the appropriate regional office specified in Appendix D of Part 20 of this chapter with a copy to the Director. Office of Nuclear Material Safety and Safeguards at least 30 days prior to the receipt of spent fuel.