ML19261A326
| ML19261A326 | |
| Person / Time | |
|---|---|
| Site: | (XSNM1292) |
| Issue date: | 12/22/1978 |
| From: | James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-78-627A, NUDOCS 7901110316 | |
| Download: ML19261A326 (38) | |
Text
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d December 22, 1978 SECY-78-627A COMMISSIONER ACTION For:
The Conmissioners From:
James R. Shea, Director Office of International Programs Thru:
Executive Director for Operations L/
Subject:
APPROVAL 0F PROPOSED LICENSE TO XPORT HIGH-ENRICHED URANIUM TO CANADA (APPLICATION XSNM01292)
Purpose:
Commission review of proposed issuance of subject license to Transnuclear Incorporated.
Review Dates:
60-day period expires on January 26, 1979.
120-day period expires on March 27, 1979.
Discussion:
In March 1978, Transnuclear Incorporated submitted an application for a license to export 299 kilograms of uranium, enriched to 93.3% U-235,to Canada.
In July, the Executive Branch recommended that the quantity requested be split into two separate appli-cations.
Transnuclear subsequently amended its application to reduce the amount to 198 kilograms of uranium, enriched to a maximum 93.3%, containing 185 kilogiams of U-235.
(The remaining 101 kilograms wem incorporated into a new application, XSNM-1355, still under Executive Branch consideration.)
The material, in the form of uranium metal, will be used in the NRX, NRU, and Slowpoke reactors over a two-year period.
The reactors are all owned and operated by Atomic Energy of Canada Limited at the Chalk River Nuclear Laboratories, Chalk River, Ontario.
The Executive Branch has noted that:
The NRX and NRU reactors are used for highly o
integrated research in support of (1) the Canadian nuclear power reactor development program and (2) to a lesser degree, the US naval nuclear propulsion program.
Both n er (492-7866)
M (492-7984)
, Discussion:
reactors were originally operated on natural (continued) uranium but were modified for high enriched uranium in the early 1960's to allow for fuel element and materials testing in a high neutron flux. After extensive study on the feasibility of reducing the U-235 content of the fuel for these reactors, the Canadians concluded that any departure would (1) result in significantly increased costs and reduced efficiency in reactor use, and (2) require changes in the reactor system and fuel development program.
o The Slowpoke research reactors are used mainly by universities and other scientifically oriented organizations.
These reactors are designed as simple and inherently safe training devices and have only very limited research or irradiation testing capabilities.
They also have a very small core requiring a fuel loading of less than one kilogram of HEU for operation.
In response to our March 28 and August 3 requests fcr views, the Executive Branch has (1) concluded that issuance of the proposed license would not be inimical to the interests of the US, including the comon defense and security; (2) confirmed that the material will be subject to the terms and conditions of tne US-Canada Agreement for Cooperation; and (3) noted that Canada has adhered to the provisions of its Agreement for Cooperation with the United States.
The staff notes that the confirmation letter of May 19,1978 from the Atomic Energy Control Board of Canada (AECB) states that 299 kilograms will be subject to the terms and conditions of the U.S.-
Canada Agreement for Cooperation. This letter was submitted prior to the Executive Branch's recommendation that the material be _ split. i.nto two applications.
The staff is of the opinion that the AECB confirmation letter is sufficient for this proposed export.
The State Department memorandum also noted that due to the urgent Canadian need for this material in order to maintain normal reactor operations, the Executive Branch analysis was forwarded in advance of Presidential review normally required on HEU applications of 15 kilograms or more.
State has recently informed the staff by letter dated December 14, 1978 (Appendix B) that this application has been approved by the President and the urgency for this material has recently been reiterated to both Secretary of State Vance and Secretary of Energy Schlesinger by high-level Canadian officials.
. Discussion:
Based on a visit of a U.S. physical security review (continued) team and subsequent exchanges, the physical protection program at the Chalk River, Ontario, Nuclear Laboratories and during transit within Canada meet the requirements of 10 CFR 110.43.
As requested in Comissioner Bradford's memo of June 21, we will forward separately a detailed statement of how the physical security elements outlined in the NRC's regulations are fulfilled in this case.
As noted in the State Department memorandum, the Executive Branch has concluded that the US has assurance that Canada is committed to providing adequate physical security for their nuclear programs, including a level of protection compatible with that envisioned by the recomendations in IAEA INFCIRC/225, Rev.1.
Furthermore, the Government of Canada has provided the written physical security assurance as required by 10 CFR 110.43(a).
Application XSNM01292 does not differ in its merits from previous exports of high-enriched uranium to Canada approved by the Commission.
Upon review of the Executive Branch analysis and the supportive documentation, the staff concurs in the Executive Branch's determination that the export would be consistent with the requirements of the Atomic Energy Act and the NNPA of 1978 and that the proposed export would not be inimical to the common defense and security of the US.
The staff has also examined the question of whethe,r it would be possible to operate the NRX, NRU, and Slowpoke reactors on uranium of lower enrichment.
Argonne National Laboratory has completed an independent assessment of the possibility of converting the NRX and NRU reactors to LEU fuel. The assessment concludes that,while these reactors could in principle be converted to LEU fuels, such conversion using current fuel fabrica-tion technology would result in a significant reduc-tion in reactor performance and increase the fuel cycle costs.
With respect to the Slowpoke reactors, a Canadian Study,with which US technical experts agree, indicates that it is possible to design future reactors of this type to operate on less than fully enriched uranium.
However, the Argonne assessment also concludes that it would be impractical to convert existing Slowpokes to LEU.
Canada, as a party to the NPT, has accepted IAEA safe-guards for its nuclear installations.
The staff has requested information from the Executive Branch on the status of facility attachments for Canadian facilities, including the NRX, NRU, and Slowpoke reactors, and this information will be forwarded upon receipt.
. Discussion:
The staff views the application at hand as a normal (continued) request for a multiple reload with shipments starting in January 1979.
The application states that 100 kilograms will be used in fiscal year 1979/80 with the remaining 98 kilograms to be used in the fiscal year 1980/81.
In light of Canada's NPT status and excellent non-proliferation credentials, the staff recomends approval of the license as requested for the two year period.
In view of the urgent need for this material requested by the Canadians for delivery no later than early January 1979 (letter of October 27, 1978 at Appendix C) and on the basis of the foregoin; considerations, the staff believes that no further reasons exist at this time to delay issuance of the proposed export license to Canada.
The following documents are forwarded for Commission review of the subject application:
(1) staff review and conclusion that the proposed export meets statutory requirements (Appendix A); (2) Executive Branch views of November 24 and December 14, 1978 recomending issuance (Appendix B); (3) application of March 21, 1978 and supplementary letters of July 28 and October 27, 1978 (Appendix C); and (4) copy of proposed license (Appendix D).
Recommendation:
That the proposed license be issued to Transnuclear Incorporated.
Coordination:
0 ELD has no legal objection.
NMSS wishes to inform the Commission that it has not received country-specific information which permits it to make an independent conclusion as to the effectiveness of IAEA material control and accounting safeguards to deter and detect diversions in Canada.
With regard to physical security, NMSS has reviewed the program in Canada and found it adequate for the purposes of the export.
'h L
J.pis R. Shea, Director 0 ice of International Programs
Enclosures:
As stated above
. NOTE:
Comissioner coments should be provided directly to the Office of.the Secretary, by c.o.b. Wednesday. January 3. 1979 Commission staff office comments, if any, should be submitted to the Commissioners NLT noromhpr 24. 1978
, With an information copy to the Office of the Secretary.
DISTRIBUTION:
Comissioners Comission Staff Offices Exec. Dir. for Opers.
Secretariat
APPENDIX A
UNITED STATES
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%v**.. f DEC 13 M MEMORANDUM TO THE FILE STAFF CONCLUSIONS REGARCING PROPOSED LICENSE TO EXPORT HIGH ENRICHED bRANIUM TO CANADA (XSNM 1292)
In March 1978, Transnuclear applied for a license to export 299 kilograms of uranium, enriched to 93.3% to Canada.
In July the applicant amended the request to reduce the amount to 198 kilograms of uranium, enriched to a maximum 93.3%, containing 185 kilograms of U-235.
The material, in the form of uranium metal, will be used in the NRX, NRU, and Slowpoke reactors over a three year period.
The reactors are all owned and operated by Atomic Energy of Canada Limited at the Chalk River Nuclear Laboratories, Chalk River, Ontario.
In response to our March 28 and August 3 requests for views, the Executive Branch has (1) concluded that issuance of the proposed license would not be inimical to the interests of the US, including the common defense and security; (2) confirmed that the material will be subject to all the terms and conditions of the Agreement for Cooperation between the US and Canada; and (3) noted that Canada has adhered to the provisions of its Agreement for Cooperation with the United States.
These views and license application analysis by the Executive Branch were forwarded by the State Department analysis of November 24, 1978.
Confirmation of the applicability of the US-Canada Agreement for Cooperation was also set forth in the May 18, 1978 letter from the Atomic Energy Control Board of Canada.
The staff has reviewed the subject application in light of the considera-tions below:
o Safeguards.
The export will be subject to IAEA safeguards.
As a party to the Nonproliferation Treaty (NPT), Canada has undertaken an obligation to accept IAEA safeguards on all source or special fissionable material in all peaceful nuclear activities within the territory of Canada, under its jurisdiction, or carried out under its control anywhere.
In view of this, the staff believes that criterion (1) of the NNPA is met.
. Memorandum to the File o
No Nuclear Exolosive Use.
Also, as a party to the NPT, Canada has undertaken the obligations not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly or indirectly; not to manufacture or otherwise acquire nuclear weapons or other nuclear explosive devices; and not to seek or receive any assistance in the manufacture of nuclear weapons or other nuclear explosive devices.
The staff therefore, believes that criterion (2) of the NNPA is met.
o Physical Security.
Based on visits of physical security review teams, and subsequent exchanges and reviews, the physidal~---~~
security program in Canada is considered adequate to protect trigger quantities of special nuclear material.
- Moreover, as noted in the State Department memorandum of November 24, the US has assurances that Canada is conmitted to providing a level of protection for their programs fully compatible with that envisioned by the recommendations in IAEA INFCIRC/225, "The Physical Protection of Nuclear Materials."
In view of the above, the staff believes that criterion (3) of the NNPA is met.
It should be noted that the Government of Canada has provided the written physical security assurance as required by 10 CFR 110.43(a).
~
o Retransfer.
The US-Canada Agreement prohibits the retransfer of any material supplied by the US, beyond the jurisdiction of Canada without US approval to such retransfer, and then only if it is within the scope of an agreement for cooperation between the US and the other nation or group of nations.
Similarly, it prohibits the transfer of special nuclear material produced through the use of US-supplied material or facilities without US approval and the US-Canada exchange of notes confirms this understanding.
Thus, it is the staff's view that criterion (4) of the NNPA is met.
o Reorocessina.
The US-Canada exchange of notes also confirms the understanding that any reprocessing or alteration of US-supplied material shall be performed only upon prior approval of the US.
The staff therefore concludes that criterion (5) of the NNPA is met.
Memorandum to the File o
Sensitive Technology.
The proposed export does not involve sensitive tecnnology.
As more fully developed in its memorandum dated November 24, 1978, the Executive Branch has determined that Canada currently meets all the criteria of P.L.95-242, including the requirements of Section 126(a)(1) and the specific criteria of Sections 127 and 128 and that Canada has adhered to all the provisions of its Agreement for Cooperation with the US.
The Executive Branch has also concluded that fueling the NRX, NRU, and Slowpoke reactors is compatible with US nonproliferation objectives at this
-. time since conversion to less than fully enriched or even low-enriched fuel, using current fuel fabrication technology, would result in a significant reduction in reactor performance and increase the fuel cycle costs.
The staff has concluded that issuance of the proposed license would be consistent with the recently enacted Nuclear Nonproliferation Act.
In addition, the State Department has noted that the proposed export was approved by the President and is consistent with policy measures governing high-enriched uranium exports as set out in the White House Fact Sheet of April 27, 1977.
In view of all the considerations above, and as required by Section 57 of the Atomic Energy Act and 10 CFR 110.44, the staff has also concluded that the export to be maoe pursuant to the proposed license (1) would be subject to the US-Canada Agreement for Cooperation and (2) would not be inimical to the common defense and security of the United States or constitute an unreasonable risk to the public health and safety.
4eal Moore Senior Licensing Officer Export / Import and International Safeguards Office of International Programs
ad APPENDIX B
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' W' u.3. WiC 74 - J P YS BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS B78 Nov 27 si ! 35 November 24, 1978 EX.:0RT/ IMPORT AND
- NTERNAT'L SFGRDS MEMORANDUM FOR JAMES R.
SHEA NUCLEAR REGULATORY COMMISSION Enclosed is an Executive Branch analysis covering a license application for the export of highly-enriched uranium to Canada.
In accordance with P.L.95-242, the analysis explicitly addresses how the requirements of Section 126 a.(1) of the Atomic Energy Act are met, including the specific criteria of Sections 127 and 128, as well as certain additional f a ctors, envisaged by Section 126 a.(1).
Executive Branch Agencies, on the basis of their review of the application has concluded that the require-ments of the Atomic Energy Act and P.L.95-242 have been met. Moreover, Canada has adhered to the provisions of its Agreement for Cooperation with the United States.
A recommendation to the President that this ex-port be approved was forwarded to the NSC on November 17, 1978.
Normally, the Executive Branch does not forward its analyses on HEU cases requiring Presidential approval to the NRC until after such approval has been obtained.
Howe ve r, in this case we are providing the analysis in advance because of the extreme urgency of the Canadian need for the HEU involved.
We will advise the NRC by separate communication of the Presi-dential action on this license application as soon as it has been obtained.
In the meantime, we would en-courage the NRC staff to begin processing the applica-tion so that final action can be expedited following the Presidential decision.
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// g' a.,: /j' Ij !%qG-Louis V.
NosenzoG/
Depu ty Assistant Secretary
Enclosure:
As stated.
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EXPORT LICENSE APPLICATION ANALYSIS XSNM-1292 As Amended Country:
Canada Transaction:
The export of 185 kilograms of U-235 contained in 198 kilo-grars of uranium metal enriched to 93.3 percent for use in fuel-ing various Canadian research reactors described below.
Applicant:
Transnuclear, Inc.
Applicant's Reference No.:
MISC-216 78-008/S/01 Date of Application:
March 21, 1978 Date of Amendment Request:
July 28, 1978 Purpose of Export This highly-enriched uranium metal is to be shipped to Canada for the following uses:
For Fiscal Year 1979-80 NRU Reactor U/Al Driver Fuel 58 kgs. U NRX Reactor U/Al Driver Fuel 23 kgs. U NRU U/Al Fast Neutron Rods 5 kgs. U NRX/NRU Mo-99 U/Al Production Rods 8 kgs. U U/Al Fuel Pins for 3 SLOWPOKE Reactors 4 kgs. U WNRE Thoria Fuel Development 2 kgs. U TOTAL 100 kgs. U For Fiscal Year 1980-81 NRU Reactor U/Al Driver Fuel 58 kgs. U N RX Reactor U/Al Driver Fuel 23 kgs. U NRU U/Al Fast Neutron Rods 5 kgs. U NRX/NRU Mo-99 U/Al Production Rods 9 kgs. U U/Al Fuel Pins for SLOWPOKE Reactors 3 kgs. U TOTAL 98 kgs. U
CANADA -- EXPORT LICENSE APPLICATION ANALYSIS 1.
Applicable Agreement for Cooperation The proposed export is subject to all of the terms and conditions of the Agreement for Cooperation between the Government of the United States of America and the Government of Canada concerning Civil Uses of Atomic Energy which entered into force on June 15, 1955, as subsequently amended.
This fact has been confirmed by a letter from the Atomic Energy Control Board of Canada, a copy of which follows the description of the license application.
The provisions of this agreement are amplified by an exchange of notes between the two governments dated November 15, 1977, copies of which are enclosed.
Canada has adhered to all provisions of its agree-ment with the United States.
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-- Mr. Vance H. Hudgins Intemational Security Affairs Department of Energy W.v,hi n?rri, D.C.
U.S.A.
20545 Dear Mr. Hudgins.
In reply to your letter addressed to Mr. Goodwin. dated May 8,1978,
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2 - regarding application S-970 (XSNt4-1292), I would like. to. cmfirm:
that the transfer of the material identified cn said.lictmce
' _ ji" ' - - '~ a) application, narrely 279 Kg U-235 contained in 299 Kg U
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(as U metal), will be subject to the tems and canditicns of the Agreement for Cocperation Concerning Civil Uses of
,.y Atcmic Energy bet. ween the Govemtrent of the. thited States and the Government of Canada as amended;
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b) that the ultimate consicpee, Atcxrti.c Energy of Carn Ltd.
is authorized to receive and possess the material;
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c) that physical security measures will be maintained with
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respect to the material so as to provide, at a mininun,.,
the level of protection cortparable to that set forth in IhTCIBC/225/ Revision 1.
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Yours sity.:ere2 y,
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Wscient.ific Advd sor 10dWi /lii'J.>. 3 HK/cjm (0 01 10/ #l OIO EG u
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2.
Extent to Which Export Criteria Are Met A.
Section 127 Criteria As provided in Section 127 of the Atomic Energy Act, the following criteria govern exports for peaceful nu-clear uses from the United States of source material, special nuclear material, production or utilization facil-ities, and any sensitive nuclear technology:
Criterion (1)
"IAEA safeguards as required by Article III(2) of the. Treaty will be applied with respect to any such mate-rial or facilities proposed to be exported, to any such material or facilities previously exported and subject to the applicable Agreement for Cooperation, and to any special nuclear material used in or produced through the use thereof."
Canada is a Party to the Treaty on the Non-Prolifera-tion of Nuclear Weapons and deposited its intrument of ratification on January 8, 1969 Canada's NPT safeguards agreement with the IAEA entered into force on February 21, 1972.
Thus, IAEA safeguards are applied in Canada to all materials or facilities proposed to be exported, as well as to any such material or facilities previously exported pursuant to the U.S.-Canada agreement for cooperation and to any U.S.-supplied special nuclear material used in or produced through the use thereof.
This understanding is confirmed in the exchange of notes between the Secretary of State for External Affairs of Canada and the Ambassador of the United States, signed on November 15, 1977.
Therefore, it is the Executive Branch view that cri-terion (1) is met with respect to Canada.
Criterion (2)
"No such material, facilities, or sensitive nuclear technology proposed to be exported or previously ex-ported and subject to the applicable Agreement for Co-operation, and no special nuclear material produced through the use of such materials, facilities, or sensi-tive nuclear technology, will be used for any nuclear explosive device or for research on or development of any nuclear explosive device."
As a Party to the NPT, Canada is committed not to develop nuclear explosive devices for any purpose.
There-fore, it is the view of the Executive Branch that cri-terion (2) is met.
Criterion (3)
" Adequate physical security measures will be main-tained with respect to such material or facilities pro-posed to be exported and to any special nuclear material used in or produced through the use thereof.
Following the effective date of any regulations promulgated by the Commission pursuant to Section 304(d) of the Nuclear Non-Proliferation Act of 1978, physical security measures shall be deemed adequate if such measures provide a level of protection equivalent to that required oy the applica-ble regulations."
In 1975, a team of U.S.
Government experts visited Canada for an exchange of views on physical security in-cluding visits to facilities at which highly-enriched uranium is stored and utilized.
The fixed site reviews included:
(1) security forces, (2) physical barriers, (3) detection and alarm apparatus, (4) communication and response capabilities, (5) access and exit controls, (6) accountability and reporting procedures and equipment for protecting nuclear materials in transit were also examined.
The Team judged Canada's physical protection system, equipment and procedures, including transportation se-curity arrangements, adequate to physically protect the type of material (i.e. highly-enriched uranium) requested in the license applications.
In the exchange of notes between the Secretary of State for External Affairs and the Ambassador of the United States, signed on November 15, 1977, Canada con-firmed the understanding of the U.S.
that both parties...
"have committed themselves to ensure that adequate physical protection is applied to all such materials or equipment taking into account the measures set forth in INFCIRC/225 (Revised).
On August 24, 1978, the Canadian Department of Ex-ternal Affairs provided by note to U.S.
Embassy, Ottawa, the following generic physical security protection as-surance:
"The Department of External Affairs presents its compliments to the Embassy of the United States of America and has the honor to acknowledge receipt of its note no. 20 8 o f J uly 31, 1978.
"The Department has noted that. paragraph 3 of the Nuclear Supplier Group Guidelines, to which the Govern-ment of Canada and the United States subscribe, in-dicates that the implementation of physical protection in a recipient country is the responsibility of the Government of that country.
"In this regard, the Department confirms that as a minimum, a physical security measures providing, level of protection comparable to those set forth in both the Nuclear Supplier Guidelines and the Inter-national Atomic Energy Agency document INFCIRC/225/-
Rev 1, will be maintained with respect to nuclear mate-rials and equipment exported to Canada from the United States and with respect to nuclear material used in or produced through the use of such material and equip-ment."
Therefore, it is the view of the Executive Branch that criterion (3) is met.
s Criterion (4)
"No such materials, facilities, or sensitive n u'-
clear technology proposec to be exported, and no special nuclear materials produced through the use of such mate-rial, will be retransferred to the jurisdiction of any other nation or group of nations unless the prior ap-s' proval of the United States is obtained for such re-transfer.
In addition to other requirements of law, the United States may approve such retransfer only if the nation or group of nations designated to receive such retransfer agrees that it shall be subject to the conditions required by this section."
Article XI C. of'the 1955 U.S.-Canada Agreement for Cooperation, as amended, stipulates that:
"Nc
-material including equipment and devices, or any Re-stricted Cata transferred to the Governiaen t of Canada or authorized persons unde its jurisdiction pursuant to this Agreement will be transferred tc unauthorized persons or beyond the jurisdicticn of the Government of Canada except as. the Commission may agree to such a transfer to another nation or. croup of nations, and then only if the transfe: of the material or Restricted Data is within the ecare of an Agreement for Coopera-tion between the United States of Americt and the other nation or group of nations."
In the exchange of notes between the Secretary of State for External Affairs and the Ambassador mf the United States, signed on November 15, 1977, Canada con-firmed the U.S.
understanding that, "(1) Sot
'e mate-rials, special nuclear materials, production a cilities, utilization facilities, equipment and devices, and heavy water, hereafter transferred pursuant to the 1955 Co-operation Agreement, and all materials trarsferred pur-suant to the Agreement embodied in the Exchrage of Notes which entered into force on March 25, 1976, or as may otherwise be agreed and any special nuclear materials produced therefrom including subsequent generations de-rived from such special nuclear matrrials shall not be transferred beyond the 72risdiction of either party to the Agreement, unless the prior approval of the other party is obtained;"
The 1955 Agreement and the 1977 exchange of notes together give the U.S.
an unqualified approval right over the retrar.sfer of material from Canada supplied by the U.S. or produced through the use of such mate-i
/
T
rial and allow retransfers only if it is determined to De
. thin the scope of an agreement for coopera-s tion w'.th the recipient countr;.
Therefore, it is the Executive Branch view that, as the U.S.
has the right of prior approval over re-transfer of U.S.-supplied material and material pro-duced through the use of U.S.
material, criterion (4) is met.
Criterion (5)
"No such material proposed to be exported and no special nuclear material produced through the use of such material will be reprocessed, and no irradiated fuel elements containing such material removed from a
reactor shall be altered in form or content, unless the prior approval of the United States is obtained for such reprocessing or alteration."
In the exchange of notes between the Secretary of State for External Affairs and the Ambassador of the United States, signed on November 15, 1977, Canada confirmed the understanding of the U.S.
- that,
"(3) Source materials and special nuclear materials transferred hereafter pursuant to the 1955 Coopera-tion Agreement, and all materials transferred pur-suant to the Agreement embodied in the Exchange of Notes which entered into force on March 25, 1976, or as may otherwise be agreed, and special nuclear mate-ials produced through the use of such materials shall not be reprocessed, and irradiated fuel elements con-tained in the foregoing special nuclear materials re-moved from a reactor shal' not be altered in form or in content by either emrty, unless the prior approval of the other party la obtained for such reprocessing or alteration."
As the November 15, 1977 exchange of notes clearly does not allow reprocessing or other altera-tion of U.S.
origin material without the agreement of the United States, it is the view of the Executive Branch that criterion (5) is met with respect to Canada.
Criterion (6)
"No such sensitive nuclear technology shall be exported unless the foregoing conditions shall be applied to any nuclear material or equipment which is produced or constructed under the jurisdiction of the recipient nation or group of nations by or through the use of any such exported sensitive nu-clear te chnology."
The proposed export does not involve the trans-fer of sensitive nuclear technology.
Criterion (6) is, therefore, not applicable.
B.
Section 128 Criterion Section 128 a.(1) of the Atomic Energy Act es-tablishes the following additional criterion:
"As a condition or continued United States export of source material, special nuclear material, production or utilization facilities, and any. Sensitive nuclear technology to non-nuclear-weapon states, no such ex-port shall be made unless IAEA safeguards are main-tained with respect to all peaceful nuclear activi-ties in, under the jurisdiction of, or carried out under the control of such state at the time of the export."
It should be noted that this criterion only ap-plies to license applications under which the initial export is scheduled to take place after March 10, 1980 or pursuant to an application submitted after September 10, 1979.
We anticipate that the initial export will occur before March 10, 1980.
In any case, as a Party to the NPT, Canada has accepted IAEA safeauards on all its nuclear activities there-by satisfying this criterion.
3.
Additional Factors A.
Safeauards Implementation The IAEA Secretariat has noted in its Special Safeguards Implementation Report that with regard to nuclear material subject to IAEA safeguards, while some deficiencies exist in the system, no diversion of a significant quantity of nuclear material was detected in any of the 45 states in which inspections were carried out.
Although recognizing the need to correct existing deficien-cies in safeguards implementation, the Executive Branch has no reason to believe that the IAEA Secretariat's report is not valid.
In the light of this and other f actors associated with the proposed export, the Executive Branch believes the framework of commitments, assurances, and safeguards is adequate for the purpose of t h '. s export.
B.
Justification of Need for HEU at This Time The Canadian designed and constructed NRU and N RX research reactors are used for a highly integrated research program in support of the Canadian nuclear power reactor development program and to a lesser extent nuclear programs of the U.S.
and other countries.
This fuel element testing and materials testing work requires a high neutron flux.
Since these reactors are among the most heavily utilized testing reactors in the world, there is substantial economic premium on minimizing fuel cvcle costs.
Although both of these reactors were origin-ally fueled with natural uranium; increasing demand of the AECL nuclear power program necessitated greater reactor operational flexibility and performance, in-cluding flux levels, than was obtainable through use of natural uranium fuel.
Consequently, in the early 1960's AECL converted both reactors to operation with HEU fuel, which being unique to these reactors is only fabricated by AECL.
The Canadians maintain that because of their continuing need for high flux levels and reactor operational flexibilities the conversion of tr se reactors back to LEU, using current tech-nology, would seriously impair execution of their ongoing research and testing program, including pro-gram in support of the U.S.
naval reactors program.
The AECL designed Slowpoke reactors, which are manufactured and sold by AECL for use by universities and other scientifically oriented organizations, are designed as simple and inherently safe training de-vices and have only very limited research or irradia-tion testing capabilities.
This type of reactor operates on a fuel loading of less than one (1) Kg of HEU.
C.
Steps Taken to Determine the Possibility of Convert 1nc the Facility to Use of Fuel of Lower Enrichment The DOE's Argonne National Laboratory has completed an independent assessment of the possibility of the NRU and NRX reactors being converted to LEU fuel.
This assessment indicates that while these reactors could, in principle, be converted to less-than-fully enriched or even low-enriched fuel, such conversion using current luel fabrication technology would result in a signifi-cant reduction in reactor performance and increase the fuel cycle costs as compared to the use of HEU.
This in turn would seriously impair the execut-lon of the ongoing Canadian research and testing program, which includes assistance to the U.S.
Reactor Program.
With respect to the Slowpoke reactors, each of which currently are fueled with less than 1 Kg of U-235 in HEU, a Canadian Study with which U.S.
techni-cal experts agree indicates that it quite likely will be possible to design future reactors of this type to operate on less than fully enriched uranium.
- However, the Argonne assessment indicates that it would be impractical to convert existing Slowpokes to LEU.
4.
Inimicality Judcment Based on review of the proposed export, it is the judgment of the Executive Branch that the pro-posed export will not be inimical to the common de-fense and security, and that the license should be issued.
. iE?.,.
hpf7[
DEPARTM ENT OF STATE k'E wona eton. o.c. 2052c
,g p,qt
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- 3. N.;1 BUREAU OF CCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFREIGEC I4 PM l 20 December 14, 1978 i ;.9T/:M?cai AND i:c ERNAT'L SFGRDS MEMORANDUM FOR JAMES R.
SHEA NUCLEAR REGULATORY COMMISSION I refer to my memorandum of November 24, 1978, ad-vising the Commission that the Executive Branch had for-warded a recommendation for approval to the President of a proposed export of highly enriched uranium to Canada (XSNM-1292) and enclosing an advanced copy of the asso-ciated Executive Branch analysis for NRC staff review and processing.
We have now received written confirmation from the Staff Secretary of the National Security Council that the President has approved this export.
As indicated in my November 24 memorandum, the HEU covered by this ap-plication is urgently needed by the Canadians.
Thic urgency has recently been reiterated to both Secretary of State Vance and Secretary of Energy Schlesinger-by high-level Canadian officials.
In this light, I would again urge the Commission to expedite action on this export license application.
y,-~~c [ ' Nosen!s0 F
Louis V.
zo Deputy Assistant Secretary e
9 APPEtiDIX C
_... ~. _
Pm A EC.7 U.S. ATOMIC ENERGY COMMIS$10N F= ew"+d (2 671 Budget Bweeeu He.
10 CF R M.,40 W as hing to n. D.C.
M545 3 a.gooo;.
xspp- /A 2 APPLICATION FOR LICENSE TO EXPORT 7eg. 88 M BYPRODUCT, SOURCE, OR SPECIAL NUCLEAR MATERI AL g
9 78
~
Sube ut eru Trsplicaer Carefully ReadJnstructu'uru s are : huck l D A TE Or
=P pLIC A T ION 2 A PPLIC AN T'S R E F ERENC E NO 3 COUN TRY OF ULTIM ATE DESTIN ATION Ir t cons t
! arch 21, 1978 MISC-216 78-008/S/01 Canada 4 N AMC QF A ppliC A N T 5 U L Tiu A TE CONSIGNE E IN FOREIGN COUN T RY
'ransnuclea r, Inc.
sTac E AccRCss Atomic Energy of Canada Limited 205 Leesburg Pike Chalk River Nuclear Laboratories C'". 5 7 A T E. A wo :'a C ocE Chalk River, Ontario
' alls Church, Va. 22041 Canada KOJ1JO
- 6. INTE R uC OI A TE CON SIGN EE IN F ORE 1GN C OU N T R Y (Gete nane 7 IF PURCH AS ER IN FOR EIGN COU N T RY 15 OTM ER TH AN and adare e s f/ same as ultimate mnsigner. state "Same. )
ULTiu A TE CONSIGN E E. GivE N A uE ANC A DORE$$.
(11 same, state "Same. ")
ame S ame
' ra8 OvAN iTY T O BE SMIP AE O (b) COuu CDIT v OC $C RipT ION (inc!we chemical and 0%ssca' for* 4 for special nuclear marerial and
- \\ce s nstea trons on bar* I h w*na urt mat ern al s'nl so s'p oci s i wtc. T sc co"t ent:
t i on a des ice, nde*:s tf > t he de".'sce, manufactwe*,
t avvr av.ael cu-#ce. J 99 Kg U (as U Metal)
Uranium in the form of Uraniu:. Nr el enziuraid to a maximum 79 Kg U235 f 93.3 percent U235.
This material will be packaged and supplied by Union Carbide Corp., Oak Ridge Tn., for shipments begining in January 1979 (rJ >+ s o n:N G A N D P A C KIN G PROC E O U R f1 IMe mested har @erra? rn.cicar materra!. Ice instet.ctror:s on bar6 )
I.K.F..A. Certificate of Competent Authority 4909 in accordance with 10 CFR Part 71.
' N t*
Or C:suu aD1 TIC 2 COVE RE D ev TH1% A ppLuc A TsON tlktcnte /.:t s state rse uvat et t te penauce.1 ror mam. c,,ctured. u+ar se=w orce e J. red. *
- t"e nature e I tow re searc h tomt u til be t rtbo~ed I
- tre an cte crt<>n s nn hack for mecsat e actear materra,. a a not..
o 11 be. used as fuel as stated in the detailed listing attached and also ar stated in tache.id End Use Statement.
Tk.w; incant, an-
Ih:
'a.
Atomic Energy L'Energie Atomique
'of Canada Limited du Canada, Limitse 1
Chalk River Labcratoires nuctsaires Chatt Rive. Onta io.
Nuclear Laboratories de Chalk River Canada K0J 1)O (013) 5M-3311 Ivia Deeu P wer) 1613) G37 5581 (via Femnroke)
END USE STATEMENT 279 kilograms of U-235 contained in 299 kilograms of uranium metal enriched to 93.3 weight percent in the isotope U-235 is to be delivered to Atomic Energy of Canada Limited, Chalk River Nuclear Laboratories, Chalk River, Ontario, for use as fuel as described in the detailed listing attached.
Approximately 19 kilograms of the total 299 kilograms is to be returned in kind in exchange for material recovered in reprocessing Batch No. 4 of USDOE-AECL Reprocessing Contract No. EY-76-C-09-1033.
Detailed information on the AECL research program, in support of the export application, has been provided directly to Mr. Dixon B.
Hoyle of the U.S. State Department.
G Y
' " / \\t,
J.'W. Carr - Head Nuclear Materials Control Branch 1978 February 17 Attach: Li s tm1gg; -, p,,,,,,,,,,,
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CURTeiT FITjEST FOR HIGILY E.GIGED UPAYIGi Qua:ttily in h
.S. U, and perced of U-235 curtedig bcing 3
requested for export to be used in (Rcac. tor nrar:e 01 othc<t desig ation).
9 Percentage of abouc quarttity of U teltich is for teorking stock and teitcther titis working s. cock teill be retained by f abtica tor /p.tocessor.
299 kg of 93% enriched uranit:n required in fiscal years 1979/80, 1980/81, 1981/82 as follows:
(a) 1979/80 NEU Psactor U/Al Driver Fuel 58 kg U NEX Peactor U/Al Driver Fuo'
'3 kg U IFJ U/Id Fast Neutrcn P:xis 5 kg U laMFJ Mo-99 U/;d Prcxiuctica Fbds 8 kg U U/Id Fuel Pins for 3 SmGOKE Reactors 4 kg U REE Thoria Fuel D2velop'nent 2 kg U TCGL 100 kg U (b) 1930/81 IGUPeactorU/AlDrivehFuel 58 kg U NPX Peactor U/Al D-iver Fuel 23 kg U IFJ U//d Fast Neutron Rods 5 kg U 1RX/N~'J Fo-99 U/;d Prcxiuction Fods 9 kg U U/Id Fuel Pins for 2 SMGOKE Paactors 3 kg U
'IMAL 98 kg U (c) 1981/82 NFU Psactor U/Al Driver Fuel 58 kg U NRX Psactor U/Al Driver Fuel 23 kg U 10U U/Al Fast Neutron Rods 5 kg U IGX /tEU Fo-99 U/Al Prcxiuction Rods 10 kg U U/Id Fuel Pins for 2 SLCf.GOKE Paactors 3 kg U R.T3E T%ria Fuel D2veloprcent 2 kg U
'IMAL 101 kg U m
I h
TH lW[.
March 21, 1978
!!r. :. Moore Nuclear Fegulatory Commission Office Of Intesrnational Programs 7735 Old Georgetown Poad Bethesda, Maryland 20014 Re: Export License Application for 299 Kg U Metal at 93.3 percent - TN Re f : 78-008/s/01 (MISC-216)
Dear Mr. Moore:
Enclosed is an Export License Application, in triplicate, for your handling on the following :
299 Kg U as Uranium Metal, containing 279 Kg U235, enriched to a maximum 93.3 percent U235.
Thanking you in advance for your help anfd cooperation.
Sincerely,
/
/ / /.
', /
/'8./,/qf/
J,,G' ]
s U
/
Vicki Matson Traffic Coordinator
Enclosure:
Original End Use Statement and one attachment Export License Application (triplicate)
EGED.f 3,, n.,
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July 28, 1978 g1 700 Mr. :1. Moore I;uclear Regulatory Co=ission Office of International Programs 7735 Old Georgetown Road Bethesda, Maryland 20014 Re: Export License Application for 299 Kg U at 93.3 percent - TI Ref:
78-008/S/01 (Misc.-216) - XS!!M-1292
Dear Mr. Moore:
Please amend our original Export License Application to lis-the following quantities:
198 Kg U 185 Kg U235 93.3 percent This quantity reflects the enriched uraniun required by A.E.C.L.
for fiscal years 1979/80 and 1980/81.
All other information listed in our application dated March 21, 1978 remains unchanged.
Tnanking you in advance for your help and cooperation-Sincerely,
./
/r j f( vh /
Vicki Matson Traf fic Coordinator
'O!/ak
..y
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v SKYLINE CENTER 5.55 LEESBURG Pine. FALLS CHURCH, VIRGINI A L741 h
TELEPHONE: 703420-2450. CA L*_E: TR ANSNUC FSCH. TELEX: 89-94 ;
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1978 CCI 27 R.i S 10 f."I 'iT/ EFCRT l..-.:tNAT.l0 October 27, 1978
~
L S-nCe ait ru a Mr.
N.
Moore Nuclear Regulatory Commisssion Office of International Programs 7735 Old Georgetown Road
~~ T Bethesda, Maryland 20014 INI' g7
/
Re:
Export License application XSNM-1292 (S970)
TN REF:
78-008/S/01 (MISC-216)
Dear Mr. Moore:
Attached is a copy of a letter dated October 16, 1978 from the Atomic Energy of Canada Limited, which stresses the urgency surrounding the issuance of this license application.
Thanking you in advance for your help and cooperation.
Sincerely,
- Yd//l(fJ 4, /l
^
Vick Matson Traffic Coordinator VM/lp cc:
Mr.
R.
Delabarre Department of State Office of Nuclear and Energy Technology Affairs Washington, D.C.
20520 Mr.
J.
Dewar U.S.D.O.E.
Division of Internaticnal Security Affairs 20 Massachusetts Avenue, N.W.
Washington, D.C.
20545 SKYLINE CENTER.1205 LEES 8URG PIKE FALLS CHURCH. VIRGINI A 0204 TELEPHONE: 703 820-2450. CABLE: TR ANSNUC FSCH
- TELEX: 8 M41
w /\\-
- 9y D',
of Canada Limited du Canada. Limitde c,
~
991,f5 Chalk River Laboratoires nuctsaires- ""-
Chalk Rive. Ontario, Nuclear Laboratories de Chalk River Canada. K0J 1Jo
" ** M U * *P 5' E3 CCT 27 P"'
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(613) 657 55Ei Ma Pembroi
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Operations Division f(
1973 October 16 INTERNAT'L SFGF.05 Ms Vicki Matson Transnuclear Inc.
5205 Leesburg Pike 1 Skyline Place Falls Chsrch, Virginia 22041
Dear Ms. Matson:
I ara writing to vou in connection with the export permit applications you have applied for on our behalf for highly enriched uranium.
We recently asked you to check on the status of these applications and I understand from con-versations with Mr. John Mangusi of your Knite Plains Office that the review of the applications is proceeding.
Unfortunately the information I have received does not give me much assurance that the export permits will be processed and approved by the time we must have the first part of the material delivered in later December or ea rly January at the latest.
1 understand that the Argonne National Laboratory has just completed a zuview of our Economic and. Technical justification which we submitted to State Depart-ment last January.
My immediate concern is what further reviews are still to be done and what is the schedule for the completion of these.
I wish to emphasize the importance of havin g the first part of the highly enriched uranium delivered no later than early January by sayin g that any delay in this delivery will cause serious problems in bein g able to maintain a sufficient supply of fabricated fuel to as.sure continued operation of our research reactors.
Anything you can do to expedite the approval of these export permits will be very much appreciated.
Please let me know if you need further information.
Yours truly
'l
').Y,/
' I'J. W. Carr - Head Nuclear Materials Control Branch
/
c.c J. Mangusi f
h
- g il.
rpif o~ 1978 o
9 APPENDIX D
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- 4 Neither rbis license nor any right under this license shall be'essign.
- THisTicENsr is t**vAUD UNLE55 TIGNED IlttOW,-
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i Is sv.utMorizED NEC REMESENTAUVE
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..: k.103 of the Atomic Energy Act of 1954,as amended and so ol! of the.
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cM o"se provisions of soid Acts, now or hereafter in effect and to oil
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'j voM t,.es <-nd regulations of the Nuclear Regulatory Commission.
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U.S. NUCLEAR REGULATORY COMMIS$10N EXPORT LICENSE
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License Number Conditions l.
Condition 1 - Licensee shall file with the Customs Officer or the Postmaster two copies,in addi-tion to those otherwise required,;of the Shipper's Export Dectoration covering L._;
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each export and mark one of such copies for transmittal to the U.S. Nuclear Regu-f lotory Commission, Washington, D.C. 20555.~The following dectoratien should oc-
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company or be placed on the Shipper's Export. w.torations for such exports:
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"This shipment is being made pursuant.to specific license number (specific :.
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license number) filed a. t (location of Customs office where license.is filed),1,,
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on (dote license.was filed).JThis licensepex5 ires on (expiration cfo.te, of _.,y n,., ]
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license), and the unshipped balance remaining on this license is sufficient.fo u.,-
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' TCondition 2 - Exports authorized in any country or destination',lexcept Country Groups.Q; S, W;. g_;..
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X, Y, and Z in Port 370, Supplement No.1, of the Co,mprehensive Export Schedule of the U.S.. Department of Commerce.
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Condition 3 - This license covers only the nuclear content of the material.
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Condition' 4 -The material to be exported _under this licens,e shall be shipped in accordance with
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.... the_ physical protection requirements for special nuclear material in 10 CFR 73.
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Condition 5 J Special nuclear material authorized. for ex' port: under this. license sholl not..be- '_~
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transported outside the United States in posselig'er-cor'rying aircrcft in shipinents _..
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exceeding (1) 20 grams or 20 curies, which'ever:is less, of plutonium or uranium '
II 233, or (2) 350 grams of uranium 235.... 719 y
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Condition 6-This license' authorizes export only and does 'not ov'thorize the receipt, physical sa possession, or use of the nuclear material. '-
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M Condition 7 - The licensee shall complete and submit on NRC Form 741 for each shipment of G
source material exported. under this license. ',y.., ],.j - ~
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Condition 8 - The licensee shall advise the NRC in:the event th4re.is,qrjy, change in the designo-
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i ion of the. company who will package the nuclearir~cte'riol to be exported.under., f-E
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this license, or any change in the location of the. packaging operation,.at least -
z three' weeks prior to the scheduled date of export.
_ y Condition.9 - The material to be exported under this license shall be protected M
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in transit, while within US jurisdiction, in accordance with the j
requirements of 10 CFR 73 and the licensee's approved security plan.
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