The Commerce Department's National Oceanic and Atmospheric Administration announced today that Space Radar Corporation, a wholly owned subsidiary of Research and Development Laboratories of Culver City, Calif., surrendered its license to operate a radar remote sensing satellite as part of a settlement agreement between NOAA and Research and Development Laboratories.

This settlement follows a nine-month national security investigation by NOAA's Space Enforcement Office, stemming from allegations of pervasive government-contract fraud committed by RDL. Craig O'Connor, NOAA's acting general counsel, said, "Following our investigation, the secretary of commerce could no longer be assured that Space Radar Corporation would comply with the national security concerns of the United States and the terms and conditions of its license."

Under the Land Remote Sensing Policy Act of 1992, NOAA is responsible for licensing and regulating the operation of private remote sensing satellite systems. Space Radar Corporation, formerly RDL Space Corporation and RDL SAR SAT, received the first U.S. license to operate a radar satellite system on June 16, 1998. The LRSPA stipulates that: "No license shall be granted by the Secretary [of Commerce] unless the Secretary determines in writing that the applicant will comply with the requirements of this Act, any regulations issued pursuant to this Act, and any applicable international obligations and national security concerns of the United States."