ML19250D535

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Requests Commission Approval of Transnuclear,Inc Application for License to Export 101 Kg U,Enriched to 93.3% U-235,to Canada.Anl to DOE Re Application Encl
ML19250D535
Person / Time
Issue date: 02/26/1981
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML19250D536 List:
References
TASK-PINV, TASK-SE SECY-81-125, NUDOCS 8103160312
Download: ML19250D535 (17)


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.s POLICY ISSUE v%

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The Comissioners a

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Willian J. Dircks

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Subject:

APPROVAL OF A PROPOSED LICENSE TO EXPCRT HlGb M C

'Wl UPANIUM TO CA%DA (AFPLICATICN XSNM01355)

Purocse:

Cc=ission review of proposed issuance of subject license to Transnuclear, Incorporated Feview Dates:

60-day period expires en u. arch 17, 1951, 120-day period expires on May 16, 1951, Discussion:

On July 23, 1978, Transn/ clear filed an applicati:n for a license to export 101 kilograms of uranium enriched to 93.3%, containing 94 kilograms of U-235, to Canada (Apcendix A).

The material, in the form of uranium metal, will be used in the NRX, NRU, and Slowpoke research reactors and in the thorium fuel development program.

The NRX and NRU reactors are Owned and ::erated by the At mi:

Energy of Canada Limited (AECL) at tne Chalk River Nuclear Laboratories, Chalk River, Ontario. The NRX and NRU are used for nuclear engineering in support of Canada's ruclear pcwer program, for radioisotope pr: duction and for neutr:n physics.

Both reactors were originally ::erated en natural uranium, but were m0dified for high-enri:ned uraniun in the early 1960's to allow for fuel element and materials

esting in a high neutron flux.

The Slowpoke research reactors, also Owned by AECL, are located in Ottawa, Montreal, Tor:nto, Halifax, and Edmenst:n.

These reactors are mainly used by universities and other scientifically criented organi:atiens for neutr:n activati:n analysis and radioisotope production.

The thorium fael development pr gram,fer which a small ;crtien of this highly enriched uraniun will be used, is aimed at investigation ef fabrir:ation technicues and irradiation testing of therium-uranium fuels.

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The Commissioners 2

Discussion:

In response to our request for viewr on the proposed export, (Continueo) the Executive Branch, in a letter dated January 14, 1981 (Appendix B): (1) concluded that the requirements of the Atom'c Energy Act, as amended, have been met and that issuance of the proposed license would not be inimical to the common defense and security of the United States; (2) confirmed that the material will be subject to the terms and conditions of the US-Canada Agreement for Cooperation as most recently amended by the Protocol of July 9,1980; and (3) noted that Canada has adhered to the provisi6ns of its Agreement for Coooeration with the United States _. _

Among o',her things, the Executive Branch's January 14, 1981 memorandum notes that:

-- The President approved the proposed export after review by the NSC Ad Hoc Group determined that the request was within the scope of the President's HEU export policy, would not be inimical to the comon defense and security of the U.S., and met the requirements of the Atomic Energy Act, as amended by the NNPA.

-- As of July 31, 1980, inventory of fuel on hand or in process was 152.06 kilograms of HEU.

(The staff has estimated that this amount would be sufficient to operate the AECL program through the beginning of 1932.)

Once the material under the proposed export has arrived in Canada, fuel fabrication lead time is 12 months. Thus, allowing time for transportation arrangements and shipping, the material requested under the proposed license is needed immediately in order to meet a cid-1982 loading schedule.

-- The AECL program annually requires approximately 63 kilo-grams of uranium for the NRJ, 33 kilograms of uranium for the NRX, and 3 kilograms of urt.nium for the several Slowpoke reactors. The thorium fuel development program requires about 2 kilograms of uranium annually. The Executive Branch has concluded that the current HEU request of 101 kilograms is justified.

The Comissioners 3

Discussion:

The Executive Branch analysis on this export states that (Con 1nuec)

Argonne National Laboratory (ANL) has assessed the possibility of converting the NRX, NRU, and Slowooke reactors to the use of low-enriched uranium fuels. ANL has concluded that conversion to 20% enriched fuel must await the availability of high density fuels currently under development.

In this regary the Executive Branch further advises that AECL at the Chalk River Nuclear Laboratories is actively engaged in a program to develop a low-enriched uranium fuel to replace the high enriched fuel currently used in the NRX and NRU reactors.

Assuming that a satisfactory replacenent fuel can be developed, the target date for conversion to LEU is 1926.

Argenne National Laboratory's assessment of the possibility of converting the NRX and NRU reactors to LEU fuel is attached at Appendix C.

The staff has reviewed the ANL assessment and agrees that, until appropriate fuels witn reduced enrichmont have been developed and made cc rercially available, it is appropriate to supply AECL with HEU for the fuel loadings for the NRU, NRX and Slowpoke reactors and for the thorium fuel development program.

The staff has been informally advised by the State Department that, while Canada is actively pursuing an independent program to develco low-enriched fuel (20%) for its research reactors, there is no indication that any effort is being made to develop 45% enriched fuel as an interim step.

(Note: Transnuclear apolied in December 1979 (XSNM01627) for additional HEU fuel for the NRX and EU reactors.

This additional request is still under Executive Branch review.

With regard to the criteria in Sections 127 and 123 of :ne Atomic Energy Act, as amenced:

-- Canada, as a party to the NPT, has accepted IAEA safeguards on all its nuclear installations.

Under Article XI.A of the Agreement for Cooperation, Canada has agreed to IAEA safeguards on all material subject to the Agreement" and any source or scecial nuclear material used in or oroduced through the use of comconents subject to the Agreement.

Furtheracre, under Article X Bis I, everything subject to the Agreemt before the July 1920 Protocol rerains subject to the Agreement.

The staff analyzed the fall-back safeguards provisiens in its Comission saper on the U.S.-Canada Agreement (SECY-E0-191, Aril 13, 1980).

In this connection, in the Comission's letter to the President en the agreement, Co missicner Bradford excressed concern with respect to these provisions.

The Comissioners 4

Discussion:

-- As a party to the NPT, Canada is precluded from accuiring, (Continuec) developing, or manufacturing nuclear explosive devices for any purpose.

Under Article XI 5. of the Agreement for Cooperation, Canada has agreed that designated nuclear technology, material, equipment and devices, major critical components and comoonents subject to the agreement and material used in or produced through the use of the foregoi,g, and n

over which a Party has jurisdiction, shall not be used for any nuclear explcsive device or for research en er develop-ment of any nuclear explosive device.

-- With respect to the physical security program in Canada, the US has assurance that Canada is comitted to oroviding adequate physical security for its nuclear programs, including a level of protection comparable to that envisioned by the recomendations in IAEA INFCIRC/225/P.ev.1. This assurance is contained in Article XII H. of thE US-Canada Acree-ment for Cooperatinn.

In additien, the Parties to tne Agreement have agreed to consult periodically or at the recuest of either Party on physical security matters.

-- Article XII D.of the US-Canada Agreement for Cooperation provides that designated nuclear technology,.aterial, equipment and devices, major critical components, components and Restricted Data subject to the Agreement and over which a party has jurisdiction, shall not be transferred to unauthorized persons or, unless the Parties agree, beyond the territerial jurisdiction of tnat Party. As cne of the Parties, US approval is thus required for retransfer of the material pr000see to be exported or any special nuclear.aterial produced thrcugh its use.

-- With regard to reprocessing, Article XII E. of the US-Canada Agreement provides that source and s::ecial nuclear material subject to the Agreement and over wnicn a Party has juris-diction shall not be reprocessed unless the Parties agree.

The Comissioners 5

Discussion:

In the ccurse of reviewing this criterion, the staff noted (C:ntinued) tnat a small portion of the U.S.-su: plied HEU will be used for the production of Molybdenum-99.

Since recovery of tne Mo-99 requires dissolutien of the Mo-99 pr0 duction targets,

.e staff raised a question to the Executive Branch as to whether U.S. Government prior consent is required for sucn alteration in form and content of an element containing U.S.-supplied special nuclear material.

In a letter dated January 30, 1931, attached at Appendix D, the Executive Branch confirmed that, at the time of recon,ending approval of the procosed export, they were aware that 3 to 10 kilograms of U.S.-supplied HEU per year would be utilized for fabrication of NRX and NRU Mo-99 U/Al production targets which, after irradiation, will be trans-ferred to a hot cell facility for dissolutien and se:aration of the Mo-99. The staff has confirmed that all of the Canadian Mc-99 recovery activities will be performed at AECL's Chalk River facilitie:.

The staff has further octained informal confirmation from the Executive Branch tnat their approval action for the export also ccnstitutes their prior ccnsent to alteration in form or content of U.S.-sucolied material for the recovery of Molybdenum-99 and that, accord-ingly, no separate approval of this recovery as a " subsequent arrangement" is necessary.

-- The proposed export doe. not involve the transfer of sensitive nuclear technology.

-- With regard to Section 123 of the AEA, Canada, as a party to the NPT, has accepted IAEA safeguards On all its nuclear activities.

International Canada's NPT Safeguards Agreement entered into force on 5afecuarcs and February 21, 1972. The hign enriched uraniun will be covered Foreign Fnysical by IAEA safeguards, pursuant to facility attachments, while Securacy Review:

at Chalk River Nuclear Laboratories. This would include the fabrication facilities, the NRX and NRU reacters, and the isotooe recovery f acility. The latest information available on the Sicwocke reactors indicates that the facility attacn-nents for two of these reactors, located at Halifax and Edmonston, are still under negotiation, wnile facility attachments are in force for the Sleweckes in Terento, Ottawa, and Mcntreal.

The Cormissioners 6

International Insufficient information is available to make a judgment on Safeguards and the effectiveness of the application of IAEA safeguards Foreign Phys Eal at the fuel fabrication and isotope recovery facilities.

Security Review:

Staff believes thst control of and accounting for the fuel (Continued) elements on an item basis are within the capabilities of both Canada and the IAEA at the research reactors.

Staff has reviewed the physi:al protection program at Chalk River and found it adequate to meet the requirements of 10 CFR 110.42. and 110.43.

Shiocing route:

The staff notes that Category I fuel exports to Canada are normally shipped by truck through Ogdensburg, New York, Hewever, in July 1979, the Ocdensburg Bridge Authority pro-mulgated a regulation banning shipments of nuclear materials across the Ogdensburg Bridge. The NRC staff is now investi-gating alternate routes and some delay may be expected in making the shipment.

However,, the staff sees to reason for delaying issuance of the proposed export license because of the shipoing route uncertainty. As the conditions of the license will specify, the licensee will not be permitted to ship the material until an appropriate physical secur#ty plan has been reviewed and approved by the Division of Safeguards.

==

Conclusion:==

Based on the above, the staff has concluded that the proposed export meets the requirements c f the Atomic Energy Act of 1954, as amended, and that issuance of the prcposed license would not be inimical to the cenmon defense and security of the United States.

The Commissioners 7

Recommendation:

That the Commission authorize the issuance of the proposed license to Transnuclear, Incorporated.

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w-William J. Dircks Executive Director for Operations Appendices:

Appendix A - application dtd 7/28/78 Appendix B - Executive Branch memo dtd 1/14/81 Appendix C - Argonne analysis dtd 8/21/78 Appendix D - Ltr from Executive Branch dtd 1/30/81 Commissioners' comments should be provided directly to the Office of the Secretary by c.o.b.

Friday, March 6, 1981.

Commission Staff Office connents, if any, should be submitted to the Comnissioners NLT March 4,1981, with an information copy to the Office of the Secretary.

If the paper is of such a nature that it requires additional time for analytical review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expecced.

DISTRIBUTION Commissioners Commission Staff Offices Exec Dir for Operations Secretariat

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Atomic Energy of Canada Limited st=EEr ace =Ess Chalk River Nuclear Laboratories 5205 Leesburg Pike Chalk River, Cntario ciTv. state. 4No zia :::E Falls Chur=h, Virginia 2204:

Canada K0J1JO and usess. f/ same as azzmat, consig,re. stat, " Jam,. ";

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(See instn.ctrons on bacas 101 K~ U (as U Metr.1)

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e form of Cranium Metal enriched to a =axi-".:n of 94 K U225 33.3 percent U235. Sis naterial will be packaged and suppl:.ed by Union Carbide Corp., Cak Ridge TN, for shipments beginning :.T 1981/32 (c) sn, * *,N a a N : ea:n:Na ee::E:un Es car eurred for seec,at.s cle, mate.,at. :re anse,ct,o,s on sar )

I. A.E.A. Cartificate of C:=petent Authority 4909 in a:Cordance with 10 CTR Part 71.

S. EN: ssE 3r : wuOOiTIEs 0 VERE 3 Ev Tuts a P*uca ?!CN : (Oesr. toe futly. stac:ng was wi.J pe ;.oasted or ma's, sac:wed. went Jm ser well or venneved. ornbe nature of the resaseth that well or perrowca.) (See tnstructsrsts on baca for special nuctee wate= tai.)

Will be used as fuel as stated in the detailed listing at ached and also as stated in which also references 198 Kg U at 93.3 percent en attached End Use Staterent, X5;M-1292 2

3 The appiicant, and any official executin g tnas certificate on behalf of the applicant named in trem 4. certify rnst enis application to is prepared in confantury wien Title 10, Code of Federal Regulations. Parts 30 and 36 (if for byproduct material) or Part 40 (if for source material) or Part 70 (if for special nuclear material), and Part 71 (for transport of rae.aoacetve 'natertal. If applicable) and enat all information contained berein. including any supplements attsched hereto, is true and correct to tne best of their knowledge and belief.

nis caterial is privately owned.

Wansnwlear, Inc.

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79 kilopans of U-2~5 contained 4-enriched to 93.3 weight percent in the iso pe U-235.

to be delivered to Atomic Energy of Canada Limited, Chalk River Nuclear Laboratories, Chalk River, On ario, for use as fuel as described in the detailed listing attached.

Approximately 1. kilogra.s of the total 299 kilcpars is to be 0

returned in kind in exchange for material recovered in reprocessing Eatch No. 4 of USDCE-AECL Reprocessing Contrac No. EY-76-C-09-1033.

of De:a:1ed information en the AECL research propas, in support application, has been provided directly to Mr. Dixon B.

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July 28, 1978 Mr. N. Mocre Nuclear Regulatcry C0=ission Office of Internaticnal Prcqrams 7735 Old Georgetow1 Road Bethesda, Maryland 20014 Re: Expert License Application fer 101 Kg U Metal at 93.3 percent - TN Eef: 78-008/5/01 (MISC. 238)

Dear Mr. Moore:

Enclose 1 is en Export License Applicatien, in triplicate, for your handling en the following:

101 Kg U as Uranitra Metal, centaining 94 Kg U 235, enriched to a maximum 93.3 percent U235 Thanking you in advance for your help and cooperatien.

Sincerely,

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'Jicki Matsen Traffic Cocrtinat:r Enclesure: End Use Statement and ene attachment Expert Ei ense Applicati:n (triplicate)

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ENVIRONMENTAL AND SCIENTIFIC AFFAIRS Z l 4 'iii X.5Al910/35.5 MEMORANDUM FOR JAMES R. SHEA NUCLEAR REGULATORY COMMISSION

/./[# h WA Enclosed is an Executive Branch analysis covering a license application for the export of highly-enriched uranium to Canada. In accordc.nce with P.L.95-242, the analysis explicitly addresses how the requirements of Section 126 a.(1) ?f the Atomic Energy Act are met, including the specifle criteria of 127 and 128, as well as certain additional factors, envisaged by Sec' Sectica 126 a.(1).

The Executive Branch, on the basis of its review of the application has concluded that the requirements of the Atomic Energy Act and P.L.95-242 have been met and that the proposed export would not be inimical to the common defense and security of the United States. Moreover, Canada has adhered to the provisions of its Agreement for Cooperation with the United States. Therefore, the Executive Branch recommends issuance of the requested export license.

It is the understanding of the Executive Branch that shipment of the highly enriched uranium under this license request will be made in accordance with regulations set forth in 10 CFR 73 Physical Protection of Plants and Materials as supplementec by NRC requirements for category I snipments to,,

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Enclosure:

As stated.

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Expor: 1.icense J.pplicatiet (Eef. 2), sub=10:ed by Trans:ucle.tr, 1 c., f er 1.::=ic Energy of Canada ':ed (120'.), c d the supper:ing d:::=en:s (Ref.3) su d - ad by IICL in supper: of their request fo r :.r (93.3%) :: be used in b

the IEU, 17.I, med SLC',wPCKE rea::::s, c d f er develop en: cf al:erna:ive e

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I.E. has als independe :17 assessed the potential fer

versien of the h'EU, IEI, and SLC'-?CKI reactors frc= use cf fuels centa' ' g

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includes zu requirenents for Fiscal Years 1979/50 and 1980/El.

"'he appr x-1: ate usage breakdev: by reactor is as follows:

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engi=eering reSearch and develop ent in supper: ef Canada's nuclear p:c gra=,

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. rr.r.:..r C~. a-r_

1.

'*Ec cv as f 0r ~ ethnical Evaluatica - NB.'J, 57.1, and SLa?Ci".d Eeact:rs,"

Letter:

S. N. Cej a, C' A/C, te E. A. Levis, A!I /1.?D, June 6, 197 5.

2.

.m'.U Exper: Li:ez.re Applicatice by "tanstuclear, I :., ? ='s Church, Ta.,

for A:c.1: Energy of Canada L1=ited (IICL), Chalk niver, C::ario, Canada: 15:01-1292, Mar d 21, 1972, as a: ended c: Jcly 2 E, 197C, := -

include 12C; 't7 reques:s for Fiscal Years 1979/80 and 1950/E1 C 1.

7 a

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bec:

J. L. Snelgrove M

D.

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e mg 1*7 O

6.

4.

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[i A l I Arlitir. tit I Surienni y o f Enel Inventory St at us (tlov. 3 , 1977) tiitti, tilt X, SI,OM POK ES, Wit-1 (at UtillE) 235U kg 235 235U SPEtlT FUEL.

kg U

III P!IOCESS kg 235g pg Ill PliOCESS AV A l l,.

DATE Oil llAtlD Ill CORE Ill STOltAdE 10 fl.166 3/ 711-3/ 79 1.

tiitH-ilitX l,nel 41.705 3/78 (l ncI.110-99 t argeto)

II) 150. 3 H 12.260 76.033 27.368 I}

2.

SI.OWPOKE Fisci

3. 4113 4/78-4/79 1.300 4.204 1.469 7.173 1/ /8-4/79 1.

l.ui i clied ll-Al Fil Itoda i 93t l j 7,i I

11.104 0.495 1.373 4

En r I clictl TliO 'IIU2 2.963 12/77 2.617 0.696 7.312(2) 2

3. g,, g,, g 5.

Pool Tent itenctor Fuel 4.2911 2.052 I}

6.

I'xpet lmentu t Ftie t (flinc.)

13.142 0.794 2.048 7

I:>.pe r imental Fuc t in 5.6 0. *.

' lit-1 (utfitt)

To t Al.

167.871 34.120 89.379 39.970 235 ilul E:

A minor inconsistency occurn i n ite r. 3, Tali t et 2.

Tlic stateil cluantitles of U 111 PROCESS for liitH - flitX l'ne l (inclueling flo-99 t nrgets) ilo not num t o tiie eluoted value, tio correction has been made ulnce one or moie of tlic flirce valuen may Ise luiorrect. Tlic discrepancy in of tiie oider of 0.45 kg 235g, luitini ur i nlit n for tliene types of 9 pes.t fuel in storage.

i

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N?J.' Eeae:or and Fue; ASSe bly Descrip::. n N

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Experiment.a1 Progra=

Research and Developmen

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Easearch and Devel:p=en:

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.e 510'a'?OKI-2 Reactor and Fuel Elemen: Des crip tion s

Reactor Des criotion Reactor Type E. closed Tank in 'a'a:er Pool Experimen:a1 Progran Neu:ren Activation Analysis, Iso:cpe Production, Training Ma=i=um Power 20 kW Operating Schedule Variable Core Lifeti=e 5-10 years 16 Average Ther=al Flux Density 1.0 x 10

= 's ^

Core Shape and Dinensions Qrlindrical, 221 =n dia=.

290 k..<,e_-

Maxinu= Iuel Ele =en: Positions 342 Nu=ber of Control Rods 1

Coolan:, Moderator E,0 Eaflec:c:

3e Loca-ion of Irradiation Tubes Eeflector Eeactivity Co:pensation for s e--U Adjes: Dr.ickness of op Ecrnup and ?cisoning Le Reflector

?uel Elemen: Descrirtier ype Cylindrica". Eods l'ranic: Enrich =en:

9 3 *.

Fuel Meat U-3.1 alicy (25 w:

  • U)

Mea Diameter

  • .22==

-o-o

v. e. ~ e,.....

3 0..z.- ~_~..<.r.

C. ac e.-.

23EU/ Ecd 0.02276 kg (fresh)

Eods / Core 323 (typical) 2'5,' Core

0. 59 E ig

APPENDIX D N

O 4

9 O

O d.