ML19254E633

Summarizes Commission Review of Proposed Issuance of Export License to Westinghouse.Recommends License,As Revised,Be Issued.Proposed License Encl

ML19254E633
Person / Time
Issue date:	09/17/1979
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-79-143B, NUDOCS 7911010597
Download: ML19254E633 (4)

Text

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FM SECY-79-1438 Seatember 17, ;979 COMMISSIONER ACTION For:

The Ccmmissicners From:

James R. Shea, Director Office of International Programs

'l/

Thru:

Executive Director for Operations Y

Subject:

PROPOSED LICENSE TO EXPORT LCW ENRICHE0 URANIUM TO THE REPUBLIC OF KOREA (XSNM-1458, SECY-79-143A)

Purcose:

Ccmmission review of proposed issuance of subject license to Westinghouse Electric Corporation.

Review Dates:

60-day period expired on August 21, 1979 120-day period expires on Octcber 20, 1979 Discussion:

In February 1979, Westinghouse Electric Corporation apolied for a license to export 2,119,531 kilograms of uranium enriched to 3.3 percent to South Korea (Appendix A). This material wculd be in the form of fabricated fuel assemblies fer the KNU 5 and KNU 6 facilities near Pusan. The amcunt of fuel requested would be sufficient to cover the initial cores and 40 reloads over a period extending to the year 2025. This request was based upon the aoplicant's projected life expectancy of the reactors. The staff notes that the Cepartment of Energy has contracted to supply uranium enrichment services for KNU 5 and KNU S cver a 30-year period extending to September 30, 2012 and Septemcer 30, 2013, resoectively.

(FA's have not been ccmoleted for KNU 5 and 5).

Ccpies of the license applicatien were forwarded to the Commission on February 27 (SECV-79-1431 On July 3 the Commission was provided ccoies of the Executive 3 ranch views on the acolication (SECY-79-143A) which recommended that NRC's consideration of this request be limited to the initial cores, essential spares, and three reloads for each of the reactors over a period of five years (Accendix 3). As a result of censiderations raised in the review of a similar export license applicaticn for Scuth Korea (XSNM-1472, SECY-79-1928) and upcn Westingnouse's request, the Executive 4

3 ranch subsequently revised its ccments and recc mended that v.

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entact:

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the license be valid until 1912. After being advised that the date cf the first shipment for tht.se reactors, while it would not be earlier than 1983 for KNU-5 and 1985 for KNU-6, is not preciscly k % 6 at the present time, State suggested that the proposed dates on the license not be changed but that when a more precise date of first shipment becomes known, the license be amended to allcw for the shipments to take place over a period of approximately eight years. The condition which limits the authorization to include only the initial core, essential spares, and three reloads each, remains '.' changed.

executive Branch views are The staff agrees that the reasonable and consistent w13 recent Ccmmission licensing actions including multiple relads. The staff has consulted Westinghcuse officia'.s who can accept the proposed license limitations and have civised that the quantity of material on the license should, accordingly, ba reduced to 305,283 kilograms. Additional staff comments on this position were provided in SECY-79-lS23.

In connection with its review of this application, the Executive Branch has (1) concluded that issuance of the license, if revised as proposed, vould not be inimical to the interests of the United Star ~

including the ccmcen defense and security; (2) confirmem at the material will be subject to the U.S.-Korea Agreement fer Cooperation; (3) confirmed that Korea has adhered to the provisions of the Korea Agreement for Cooperation with the United States; and (4) advised that there are no material changed circumstances since the submission of its detailed analysis of February 23, 1979 for license application XUCS436. /Topli-cation XUC8436 was submitted by Edicw Internaticnal fEr the export of 10,000 kilograms of depleted uranium to Korea.

The a; plication was subsequently amended, after the receipt of the Executive Branch views, to reduce the quantity of material to 9,5C0 kilograms.

In accordance with 10 CR 110.40(b)(3), an application for the expo"t of less than 10,000 kilograms of source material does not require Ccmmission review: accordingly, application XU0S436 was not forwarded tc' the Ccmmission and this license was isrued on March 1, 1979. A copy of the Executive 3 ranch views on acclication XUCS436 is beingforwardedwiththispaper' Appendix 017.

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, staff believes that there are no material changed cir-W iances concerning exports to Korea which wo'uld affect W Commission's consideration of licensing criteria and which have occurred since issuance of export license XSNM-1173 for HEU to Korea after Corrraission review. Accordingly, the staff believes that this proposed export license may be issued. Ttls procedure is authorized by 5110.44(a)(2) of Part 110 and is based on section 126(a)(2) of the AEA as amended by the Nuclear Nonproliferation Act of 1978. The staff has concluded that this export would not be inimical to the common defense and security of the U.S.

The following documents are forwarded for Commission review of the subject application: (1) application of February 8, 1979 (Appendix A); (2) Executive Branch views of June 21, 1979 (Appendix 3); (3) revised Executive Scunch views dated September 7, 1979 (Appendix C); (4) Executive Branch views dated February 23, 1979 on previcus li' cense XUO8436 (Appendix 0). A copy of the proposed license is attached at Appendix E.

NMSS Technical The fuel assemblies to be exported are for reactors presently Review:

under construction. These facilities will be covered by the IAEA Safeguards Agreement with Korec. Facility Attachments have not yet been completed for these facilities, and NMSS has no information regarding when the Facility Attachments will be negotiated er completed. However, we note that the first shipment is not scheduled until February 19S2.

Although insufficient informaticr, is available to ccmpletely evaluate the adequacy of safeguards in Korea, NMSS believes that the proposed export will not involve any unusual or sensitive safeguards issues.

In particular, the control and accounting for reactor fuel on an item basis is within state capabilities and should pose no unusual safeguards problems for the IAEA. The U.S. is currently providing technical supoort to Korea in the upgrading of its SSAC program. A safeguards analysis for Korea was provided in SECY-79-lS2C.

NMSS nas reviewed the Korean program for physical protection of icw enriched uranium and pcwer reactors and fcund it adequate to meet the requirements of 10 CFR 110.a2 and 110.43.

Recenmendation:

Thr.L the proposed license, as revised, be issued to 'Aestinghcuse Electric Corpcration.

1288 006

4-Coordination:

OELD has no legal objection. NMSS views on the adequacy of accounting and control, the effectiveness of IAEA safeguards implementation, and the adecuacy of the physical security program in Korea are as stated above.

J.

R. Shea, Director 0

ice of International Programs

Enclosures:

1.

Appendix A - Appl. of 2/3/79 2.

Appendix 3 - Executive Branch views dtd 6/21/79 3.

Apper.iix C - Revised Executive Branch views dtd 9/7/79 4.

Appendix 0 - Executive Branch views dtd 2/23/79 on previous license XUC8436 S.

Appendix E - Copy of prepcsed license DISTRIBUTION:

Ccmissioners Commissicn Staff Offices Executive Dir. for Opers.

Secretariat Ccmissioners' corments should be provided directly to the Office of the Secretary by c.o.b. Wednesday, Sectember 26. 1979.

Comissicn Staff Office ccrrents, if :ny, should be submitted ta the Ccenissioners NLT September 24, 1979, with an infornation copy to the Office of the Secretary.

If the paper is of such a nature that it requires additional time for analytical review and corrent, the CecInissioners and the Secretariat should be apprised of when cecrents may be expected.

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U.S. NUCLEAR REGULATCAY CCMMtSSION ApeRCVED SV GAO t-O RM NRC

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YYa sie APPLICATION FOR LICENSE TO EXPORT NUCLEAR MATERIAL AND ECUlPMENT (See tesmict:ces ces Reverse) n occxET**c.

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DEPARTM ENT OF STATE

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BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC'JFSER3 E.8

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September 7, 1979

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. t '!D CU,;GT*L STGCS Mr. Marvin R.

Peterson Acting Assistant Director of International Programs United States Nuclear Regulatory Commission Room 6714 - MNBB Bethesda, Maryland

Dear Mr. Pe te rson :

This letter is in response to the telephonic request p.

from your office for written confirmation of the change in the Executive Branch reccamendation regarding the ap-propriate period of validity for export licenses XSNM01458 and XSNM01472 authorizing the export of low-enriched power reactor fuel to the Republic of Korea.

AJ you will recall, on June 11, and Jane 21, 1979, the Executive Branch transmitted favorable recommendations to the NRC for license applications XSNM01472 and XSNM01458, respectively.

In each case the favorable recommendation was conditioned upon a limitation of the amount of low-enriched uranium to that sufficient for initial cores, es-sential spares and three reloads and a license validity of five years rather than he 40 reload /47 year licenses re-quested by Westinghouse.

Westinghouse accepted the initial core, three reload limitation in chese cases, but claimed that a five year validity period was too short even f;; the

'.imited amount of material authori::ed for export.

Westing-hcuse requested that the licenses be made valid for eight years from the date of first shipment.

The Executive Branch reviewed the Westinghouse request x-in light of the scheduling information furnished by tele-phone by the firm and concluded that eight years from the date of first shipment was a reasonable pericd based on the understanding that initial shipments will be made in 1981

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for KOR! 3; 1983 for KNU-5 and

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leading will occur approximate DUPLICATE DOCUMENT

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C C Entire document previously entered into system under:

ANO 1288 910 No. of pages:

first reload two years after initial loading.

Subsequent reloads will be at 18 month intervals and an additional 6 months to a year is needed to account for schedule slip-m _.

page.

Therefore license No. XSNM01472 should be valid until Cecember 1988 (1981 plus 8 years); and XSNM01458 should be valid until 1992 (1985 plus 8 years for Reactor KNU-6).

Sincerely,

- FA;L%f 4

Gerard F.

Helf ich Dire c to r' Of fice of Export and Import Control

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