ML19250H136

Requests Approval of Edlow Intl Co Application to Amend License XU-8427 to Export Source Matl to France for Enrichment & to Switzerland for Storage Purposes

ML19250H136
Person / Time
Issue date:	06/04/1981
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML19250H137	List: ML19250H136 ML19250H141
References
TASK-PINV, TASK-SE SECY-81-355, NUDOCS 8106120025
Download: ML19250H136 (14)

Text

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June 4, 1931 SECY-81-355 POLICY ISSUE (Notation Vote)

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For:

The Commissioners From:

William J. Dircks

• s Executive Director for Operations

Subject:

APPROVAL OF A PROPOSED LICENSE AMENDMENT TO EXPORT SOURCE MATERIAL TO FRANCE FOR ENRICHMENT AND TO SWITZERLAND FOR STORAGE PURPOSES (.XU08427)

Purpose:

Commission review of proposed issuance of subject license amendment to Edlow International Company.

Review Dates:

60-day period expires on July 4,1981 120-day period expires on September 4,1981

Background:

On March 26, 1980, license XUO8427 (SECY 79-640 A and 640 B) was issued to Edlow International Company authorizing the export of 68,500 kilograms of natural uranium in the form of UF6 to France for enrichment at the Cogema EUR0DIF facility.

After enrichment, the material will be returned to the United States for fabrication into fuel elements by the General Electric Company. These assembled fuel elements will eventually be exported to Switzerland, under a separate NRC license, to fuel the Kernkraftwerk Kaiseraugst power reactor.

Discussion:

On July 21,1980 and December 3,1980, Edlow International submitted requests (Appendix A) to amend XUO8427 as follows:

1) increase the amount of UF6 to be exported from 68,500 kilograms to 248,000 kilograms; 2) extend the expiration date on the license from March 10, 1982 to March 10, 1990; and 3) include the Federal Institute for Reactor Research (EIR) facility in Wuerenlingen, Switzerland as an inter-mediate consignee to store the material.

Edlow requests the increase in the quantity of material to cover fabrica-tion of not only the initial core and two reloads but also the third and fourth reloads as well.

The longer expiration CONTACT:

E. Hemby, IP (2-7984)

R. Moore, IP (2-7984) 81061200 %

The Commissioners Discussion:

date is requested because the Kaiseraugst reactor is not (Continued) expected to be completed until the late 1980's. This delay in construction will also result in the customer having to store the UF6 material at the EIR facility before it is enriched and possibly the produced LEU after enrichment.

In response to our request for views on the proposed license amendments, the Executive Branch, in a letter dated March 9, 1981, (Appendix B): 1) concluded that the requirements of the Atomic Energy Act, as amended by the NNPA of 1978, have been met and that issuance of the proposed license amend-ments would not be inimical to the common defense and security of the United States and 2) confirmed that the material will be subject to all the terms and conditions of the Agreement for Cooperation between the United States and Switzerland and the Additional Agreement for Cooperation between the U.S. and EURATOM, In connection with the requirements under Section 402(a) of the Atomic Energy Act, as amended, the analysis notes that the Department of Energy has initiated the necessary procedures for the subsequent arrangement 'or enrichment of the material in France. Staff has also confirmed with the Department of Energy that no commitments from France are necessary with regard to the enrichment.

The analysis also notes that the November 27, 1979 review of the original application by the Executive Branch remains valid, in view of Executive Order 12295, which extends the duration of the EURATOM waiver to March 10, 1982. The Executive Branch concludes there has been no other material changed circumstance since this review.

In examining the Executive Branch views of March 9, the staff noted that physical security assurances for the EIR facility, with respect to the Category III LEU which may be stored at the St:iss EIR facility after enrichment, had not been obtained.

In response to our request, the State Department on May 1,1981 transmitted written physical security assurances from the Government of Switzerland.

The staff believes the:c phi:ical security assufances are adequate. The State. Ocpartment transmittal letter 10 attached at Appendix C; however, the letter containing the written assurances from the Government of Switzerland to the Executive Branch contains privileged information and is not included but a copy is available from the staff and can be forwarded upon request.

The staff believes that there are no material changed circumstances. concerning exports to France and Switzer-land which would affect the Commission's consideration of the licensing criteria and which have occurred since issuance of the original license in March 1980 or since the issuance of the most recent license for Switzerland which was approved by the Commission (SECY-78-471).

The Commissioners 3

International Nuclear material at the EIR facility in Switzerland is

$afeguards and subject to IAEA safeguards under the Switzerland /IAEA NPT Foreign Physical Safeguards Agreement which entered into force on September 6, Security Review:

1978. A facility attachment has been completed for this facility.

Although little information is available on the application of safeguards by the IAEA in Switzerland, staff believes that the control of and the accounting for stored uranium in UF6 cylinders on an item basis are within the capabilities of both Switzerland and the IAEA.

France has signed a safeguards agreement with the IAEA, under its voluntary offer, but it is unlikely that it will be put into force and implemented in the near future.

Staff does not know whether the EURODIF enrichment facility will be listed as one of the eligible facilities for application of IAEA safeguards under this agreement.

Very little information on the application of IAEA safeguards at French facilities is currently available and no information is available concerning the specific safeguards requirements imposed at EURODIF by EURATOM.

Switzerland, as party to the Nonproliferation Treaty (NPT),

has undertaken obligations to accept IAEA safeguards on all source and special nuclear material in its peaceful nuclear activities. As a nuclear weapons state, France is not subject to full scope safeguards requirements.

In regard to physical security, France and Switzerland have provided written assurances that imported nuclear materials will be protected in accordance with international standards.

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Conclusion:==

In view of the above considerations, the staff has concluded that the proposed export meets the requirements of the Atomic Energy Act of 1954, as amended, and that issuance of the proposed amendments to license XU08427 would not be inimical to the common defense and security of the United States.

Recommendation:

That the Commission:

1.

Approve issuance of the proposed license amendments to Edlow International Company.

The Commissioners 4

Recommentation:

2)

Following the Commission approval of the license amendments, (Continued) note that the staff will process DOE's subsequent arrangement request for enrichment of the material in France without Commission review.

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William J. Dircks Executive Director for Operations Appendices:

Appendix A: Applications dtd 7/21/80 and 12/3/80 Appendix B: DOS ltr dtd 3/9/81 Appendix C: DOS ltr dtd 5/1/81 DISTRIBUTION:

Commissioners Commission Staff Offices EDO ELD Commissioners' comments should be provided directly to the Office of the Secretary by c.o.b. Friday, June 12, 1981.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT June 10, 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 expected.

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MY U' OM (2023 83.u237 WUI 6087. RCA 248540 Nuclear Regulatory Commission Office of International Programs, Export, Import & Safeguards Washington, D.C.

20555

Dear Sir / Madam:

On behalf of Kernkraftwerk Kaiseraugst, we hereby wish to amend U.S.N.R.C. Export license XUO8427.

Kaiseraugst has a contract with General Electric which covers the fabrication of the first core and two reloads plus an option to fabricate the third and fourth reloads.

As the Kaiseraugst reactor is scheduled for operation in late 1983, we would like to add enec4b'a ern-nee in Switzerland orfnr O to European enrichment as well as inc-ameinc the cuantitv bv_

179.500 kes. uranium as natural UF6.

Pleas xtend the expiration date of the amended evan*

license to 1990 which snould eliminate tne neec for multiple redun-cant retransrers for approvals in the event that interagency proce-dures will allow licensed actions to proceed for the life of the export license. We realize that the license expiration date will be annually subject to the extension of the Euratom / USA Bilateral Agreement for Cooperation.

We look forward to receiving this amendment on a timely basis.

Most cordially yours, EDLOW INTERNATIONAL COMPANY

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..>. IR; Diane Wright Harmon

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December 3, 1980 (202) 83.L8237 WUI M387, RCA 248540 U.S. Nuclear Regulatory Commission Office of International Programs F.xport/ Import / Safeguards Washington, D.C.

20555

Dear Sir / Madam:

Please refer to our July 21, 1980 request for an amendment.

The NRC Form 7 does not really lend itself to commercial options or partial U.S. supply for' reactor reloads.

Since there have been amendment requests to the original license and several amendments to the Euratom Agreement for Cooperation letter, this letter should serve as a clarification.

The Kaiseraugst reactor will probably not go on line until the late 1980s.

However, the start-up delay does not delay contractural obligations they have entered into.

In order to alleviate the necessity of requesting an amend-ment for post enrichment storage in Switzerland, we would like to have that made as part of the license.

Therefore, in order for Kaiseraugst to continue to consider General Electric Co. as a viable supplier for all or part of the third and fourth reloads, and to cove-the various pnssibilities that may be necessary, please examine XUO8427 as follows:

248,000 kilograms of uranium as natural uranium hexafluoride Ultimate Consignee Kernfraftwerk Kaiseraugst AG.

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Poasible Storage at Intermediate Consinnee for All or Part of Hexafluoride Federal Institute for Reactor Research (EIR)

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e Enrichment at Intermediate Consignee Eurodif-Tricastin Possible Partial Post Enrichment Storage at Intermediate

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As previously mentioneo, this quantity of material will be fabricated by General Electric Co. in the U.S.A..

We thank you for your consideration of the commercial diffi-culties encountered by utilities with delayed reactors.

We are at your service to clarify any questions you may have.

Yours most cordially, EDLOW INTERNATIONAL COMPANY Diane Wright Harmon Vice President ec:

Mr. P. Fry - Kernkraftwerk Kaiseraugst-AG, Baden Mr. J. Marchal - Euratom, Washington, D.C.

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APPENDIX B

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Q-DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNmES EURATOM SUPPLY AGENCY October 27, 1980 Mr. John A. Griffin Director, Division of Politico-Security Affairs Office of International Security Affairs

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Department of Energy Washington, D.C.

20585

Subject:

Edlow International Co. application

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dated July 26, 1978 for France - XUo8427

Reference:

Our letter of August 25,,1978 to Mr. Hudgins Our letter of August 26, 1980 to Mr. Hudgins Our letter of October 22, 1980 to Mr. Griffin This letter replaces the above three referenced letters from our office.

We~ certify that the material mentioned in this applica-tion, namely 248,000 kilograms of uranium (in the form of natural uranium hexaflouride), and the transfer of this material will be subject to all terms and conditions of the

.Additioral Agreement for Cooperation, dated July 25, 1960, as amended.

Further we certify that COGEMA, Pierrelatte, France, as ultimate consignee, is authorized by EURATOM to receive and possess this material pursuant to the aforementioned Agreement for Cooperation.

The material, after enrichment by EURODIF, will be returned to the U.S.A.

Sincerely,

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Ms. Diane Harmon, Edlow International Co.

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N.B.: Our reference is AG/04/6

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- ch October 8, 1980 651.513 K'aug'st Mr. John A. Griffin Director Division of Pclitico-Military Security Affairs Office of International Affairs U.S. Departa.ent of Energy Washington, D.C.

20585 Re: Export License Application XU 8427 Dear

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Griffin, Reference is made to your letter of Septenber 26, 1980.

This letter serves as Official confirmation that a) The transfer of the material, as identified on the license application, will be subject to all of the terms and conditions of the Agreement for Cooperation, which entered into force on August 8, 1966, as amended, concerning the civil uses of atomic energy between the Government of the United States and the Government of

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"'he intermediate consignee, Swiss Institute for Reactor Research in WUrenlingen, is authorized by my Government to receive and possess the material.

Sincerely yours,

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Muller Energy Counselor

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APPENDIX C

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