ML19250C888

Recommends Commission Authorize Issuance of License for Westinghouse to Export 305,283 Kg U,Enriched to 3.6% U-235, to Korea

ML19250C888
Person / Time
Site:	(XSNM-1750)
Issue date:	02/11/1981
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
TASK-PINV, TASK-SE SECY-81-106, NUDOCS 8103030921
Download: ML19250C888 (3)

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Subject:

PROPOSED LICENSE TO EXPGRT LOW ENRICHED URANI n T0 KCRE) (XSNM31750)

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Purpose:

CD:rtission review of proposed issuance of subject license to Westinghouse Electric Ccrporation Review Dates:

50-day period expires on March 9,1981 120-day period expires on May 8, 1981 Discussion:

In October 1980, Westinghouse Electric Corporation filed an application for a license to export 305,233 kilograms of uranium enriched to 3.5% U-235 to Korea (Appendix A). The material, in the form of UO2 in fabricated fuel bundles, will be used for the initial cores, spares, and three reloads for the Korea Electric Company Nuclear Power Plant Units (KNU) 7 and 8.

Export of the KNU 7 and 3 reactors was authori::ed by NRC Exocrt License No. XR-133, issued on September 22, 1980. The reactors each have a thermal power level of 2,785 megawatts and are being constructed in Yeonggwang, on the southwest coast of Korea. The scheduled startup dates for the KNU-7 and KNU-8 are March 1985 and March 1987, respectively.

In response to our recuest for views on the proposed export, the Executive Branch, in a letter received on January 8,1981 (Appendix 3), (1) concluded that the recuirements of the Atomic Energy Act of 1954, as amended by P. L.95-242,have been met cnd that issuance of the proposed licensa would not be inimical to the corraon defense and security of the Unitec States, provided that the license is made valid from January 1,1984 to December 31. 1992 to cover the nine year period in which shipments of the material are scheculed to take place: (2) confirmed that the mattrial will be subject to the tems and conditions of the U.S.-Korea Agreement for Cooperatir ; (3) noted that the Republic of Korea has achered to all the provisions of its Agreement for Cooperation; and (4) acvised that there were no material changed circumstances regarding exports to Kcrea since subm.ssion of its cetailed analyses of May 5, 1980 and February 23, 1979 on orcoosec exports to Korea (XR-133 and XUCB436). XR-133( SECY-80-33E) was reviewed oy One Corr::ission.

Contact:

J. J. Lee, :P 492-7984 8108080 %

The Comissioners 2

Discussion:

Among other. things, the Executive Branch notes that the (Continuec) nine year shipping ceriod mentioned above assures that the loading of the initial core will take olace a;oroxinately one year after shipmentj and that the first reload will take place two years later with subsequent reloads at 18 month intervals. An additional 12 months has been requested for schedule slippage.

In a January 9,1981 letter (Appendix C), Westinghouse requested expeditious Comission review of this application.

The applicant advises that their customer, Korea Electric Company, must receive the croposed excort license before it can draw upon Eximbank funds for payment of yellcwcake.

Since the first payment is due during the first quarter of 1981, t S need to obtain the export license has become critical.

Internaticnal As a party to the NPT, Korea has accepted IAEA safeguards cn Safeguards and all source and special nuclear material under its jurisdiction.

Foreign Physical Its NPT Safeguards Agreement entered into force on November 14, Security Review:

1975.

The exported fuel elements would be utilized at the KNU-7 and 8 reactors.

Facility attachments for these reactors have not yet been developed. The IAEA would not expect to receive design information until these reactors are in an advanced stage of construction, at which time the appropriate facility attach-ments would be prepared.

Staff does not expect that the IAEA would encounter any problems in completing the necessary facility attachments at the appropriate time.

Although little information is available on the (.f9ctiveness of the application of IAEA safeguards in Korea, staff believes that control of and accounting for the fuel elements on an item ba;is at these reactors will be within the capabilities of Korea and the IAEA.

Staff has reviewed the physical protection progr am in Korea, and found it adecuate to meet the requirements of 10 CFR 110.02 ard 110.43.

The Comissioners 3

==

Conclusion:==

The staff believes that there are no material changed circumstances concerning exports to the Republic of Korea which would affect the Comission's consideration of licensing criteria and which have occurred since issuance of prior export licenses ( e.g., XSNM01412, SECY-79-182B; XSNM01458, SECY-79-1433; XR-133, SECY-60-336; and XU08435) to Korea after Comission review. Accordingly, the staff believes the license should be issued pursuant to 5110.44(a)(2) of the AEA, as amended by the Nuclear Non-Proliferation Act of 1978.

The following documents are forwarded for Comission review of the subject application:

(1) applicatien of October 8, 1930 (appendix A); (2) Executive Branch views of October 17, 1950 (Appendix 5); and [3) Wedinchouse letter dated Januarv ~0,

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Recomendation:

That the Comission authorize the issuance of the requested license to Westinghouse Electric Corporation.

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Executive Director for Operations Comissionc.s' comments should be provided directly to the Office of the Secretary by c.c.b. Friday. February 20, 1981.

Comission Staff Office coments, if any, should be submitted to the Conmissioners NLT February 18, 1981, with an informatien copy to the Office of the Secretary.

If the paper is of such a nature that it reouires additional time for analytical review and comment, the Comissioners and the Secretariat should be apprised of when coments may be expected.

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• • P**C Electric Corporation Divisicas October 8,1980

"". J. S. Devine Assistant Director Export / Import and International Safeguarcs U. 5. Nuclear Regulatory Co rt.ission Washington, D. C.

20555

Subject:

Korea Nuclear Fuel Export License Aoplication for KNU 7 and 8 Gentlemen:

We hereby apply for an export license for the suoply of nuclec* fuel fw the Korea Electric Co. KNU 7 and S utili:ation facilities for w3ich riant license XR-133 was issuec September 22, 1980.

The location of KNU-7 and KNU-8 is on Gyaeme, on the south-est coast of Korea located approximately 34 miles nortnwest of Gwangju City, which is the capital of Chunnam Provir.ce.

The exact location is latitude of 35

-24.3 sec. north and longitude of 125*-2t.5 sec. east.

In order not to interfere with Eximbank financing arrangements with the customer, and to further enhance the U.S. image abroad as a reliable supplier, we recuest this application be processed within :ne statutory time limits, including envoking of the "no material changed circumstance" provision.

We remain strongly dedicateo to " life-of-plant" fuel supply licenses, however, in order not to cause a delay i.: the issuance of this license we have limited our recuest to be consistent with the time frame previously approved for KNU 5 and 5 license XSNM-1458, issued April 23, 1980.

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Mr. J. S. Devine October 8, 1980 Page 2 Your prompt consideration to this application will be appreciated.

Please contact me shoulc you have any questions.

Very truly yours,

}$ff m-M. M. Her ch International Customer Services

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BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS.

v January 7,1981 Mr. Jame.t R. Shea Director of International Propams yJ jj7f g United States Nuclea-Regulatorv Commission Room 6714 - MNBB S g /{~ @

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Dear Mr. Shea:

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! um This letter is in response to the letter from your office dated Ocicoer 27, 1980, recuesting Executive Branch view: as to whether issuance of an export license in accordance with the applicatior, hereinafter described would be inimical to the common oefense and security of the United States and whether the proposed export meets the applicaole criteria of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 197E (P.L.95-242):

NRC No. ISNM01750 - Application by Westinghouse for authorization to export to the Republic of Korea 2,464 kilopams of U-235 contained in 305.283 kilograms of uranism enriched to 3.6 percent maximum in the fo of UO; ir. :arricated fuel cundles.

for initial cores, spares and three reloecs for the Korea Electric Company Nuclear Power Plant Units 7 and E.

The proposed export would take place pursuant to the U.S.-Ecrea Ag eement for Cooperation, as confirmed in a letter from the Embassy of the Republic of Korea, a copy of which is enclosed. The Republic of Korea has adhered to the provisions of its Agreement for Cooperation with the United States.

The Executive Branch has reviewed this application anc concluded that the requirements of the Atomic Energy Act, as amended by P.L.95-242, have been met and that the proposed export will not be inimical to the common defense and security of the United States. prwided that the license is made valid from January 1,1984 to December 31, 1992 to cover the 9 year period in which shipments of the material are scheduled to take place. This schedule assures loading of the initial core will take place approximately cne year after shipment and that the first reload will take place two years later with subsequent reloads et 18 month intervals. An additional 10 months has been requested for schedule slippage.

Analyses for the Republ:0 of Eeree were subWited fer 9'C license ar-nications Nos. XR01 5 on 's, E.19E 0 ar,t "UG5, A cr Feorur' L. 12 7 T Ire nas oeen no material enan e in cireur.stnrei.:r.ce inose su:r is.::Or' Qgo U$M @

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Enclosure:

Assurance letter

MINISTRY OF SCIENCE AND TECliNOLOGY REPUBLIC OF KOREA SEOC1.110. KOREA n.or o.:e Cabir Address: MOSTEOK Tries: MIOST K24:30 John A. Griffin 17 ':ecember 1950 Directer, Division of Politico-F#'dtary Securit7 Affairs Lept-trent of Energy

' Washing, D.C. 20585 Lear Mr. G-iffin:

In referoce to your le::er of 12 Lovencer 19E; regarding applicatien of ISh'M 1750, we confir: that:

a) The transfer of the r.aterial, as identifiei en the license applicatien of ISNM "50, w"'

be subject, to e

of the ter=s and conditions of the Ag eenent fer Cooperatien, vnich entered into feree en 19 March 1978, as amendei, cence.v.ing the ci-2 uses of a.ccic energy te: ween the Republic of 1.crea sr.d the United States; b) The Ecrea Electric Cc=pany, i.he ulti=nte censignee, as identified on the applicatien cf ZEL'M 1750 is authc._:ed by the Gover==ent of the Rep +c of Korea to receive and possess the caterial.

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,g Electric Corporation Divisicas

~ January 9,1981 Mr. J. B. Devine Assistant Director Export / Import and International Safeguards U. S. Nuclear Regulatory Comission Washington, D. C.

20555

Subject:

Export License XSNM1750, KNU 7 and 8 SNM Confinning my telecon to M. Peterson Our customer infoms us that this license is required before he can draw down Eximbank funds for payment of yellowcake. Their first payment is due during the first quarter of 1981 and they have expressed concern.

Accordingly, we will appreciate any effort made in expediting the issuance of this license.

Please advise if we can offer any further information or provide our assistance.

Sincerely yours,

'h fs-m M. M. Hersch International Customer Services

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APPENDIX C Jya_ f/DMDObf9