ML19261B530

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Discusses Transnuclear,Inc Application to Export 779 Kg U to Canada.Recommends License Be Issued.Requests Commissioner Comments.W/Supporting Documentation
ML19261B530
Person / Time
Issue date: 12/19/1978
From: James Shea
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To: Ahearne J, Bradford P, Gilinsky V, Hendrie J, Kennedy R
NRC COMMISSION (OCM)
References
SECY-78-679, NUDOCS 7902280130
Download: ML19261B530 (22)
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{{#Wiki_filter:. e THIS DOCUf.1ENT CONTAINS Cecember 19, 1978 ~ECY /8-o-,/9 C POOR QUAUTY PAGES COMMISSIO.NER ACTION For: The Comnissioners From: James R. Shea, Director Office of International Programs p / Thru: Executive Director for Operations 17-

Subject:

PROPOSED LICENSE TO EXPORT LOW ENRICHED URANIUM TO CANADA (APPLICATION XSNM-1334) Discussion: In June 1978, Transnuclear applied for a license to export 779 kilograms of uranium, enriched to 2.05 U-235 to Canada. The material, in the form of UF6, will first be converted to uranium oxide and then to uranium carbide fuel stacks by Eldorado Nuclear Ltd. in Ontario. After conversion, it will be shipped to either Canadian General Electric in Peterborough, Ontario or Westinghcuse Canada Limited in Port Hope, Ontario for assembly into aporoximately 220 fuel bundles to make up the eleventh fuel charge for the WR-1 nuclear research reactor. T're WR-1 is a Canadian built, tank-tyce, heavy water moderated, cr:;anic-cooled 40 megawatt research reactor utili::ing low-enriched uranium. It is cwned by Atemic Energy of Canada, Limited and located at the Whiteshell Nuclear Research Establishment, Pinawa, Manitoba, Canada. In response to cur June 29, 1978 recuest 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 ccninen defense and security; (2) confirmed that the material will be subject to all the terms and conditions of the Agrae-ment for Ccoperation between the US and Canada; and (3) noted that Canada has adhered to the :rovisicns cf the US-Canada Agreement for Cccperation.

Contact:

e J. Dunn Lee (192-798A) G ~ fr/P-h . G. Colincer (492-7566)

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% The NRC has received from Canada the written physical security assurances required by 10 CFR 110.43(b) that adequate physical protection is applied, taking into account the measures set forth in INFCIRC/225, Rev. 1. There appear to be no unusual or sensitive issues affecting consideration of this application. Thus, based upon its ii. dependent analysis and review of the Executive Branch submission, the staff has concluded that Canada meets all applicable statutory requirements of the NNPA for the issuance of this license. The staff has requested additional information from the Executive Branch on the status of facility attachments in Canada (including the WR-1 reactor) and this infor-mation will be forwarded to the Commission upon receipt. The Commission should note that the 60 day review period expires on January 2,1979 and the 120 day pericd expires on March 3. The folicwing dccuments 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 3, 1978 recommending issuance (Appendix 3)', (3) application of June 22, 1978 (Appendix C); and (4) copy of proposed license (Appendix D). Recommendation: That the proposed license be issued to Transnuclear Incorporated. Coordination: OELD has no legal cbjection. NMSS wishes to inform the Commission that it has not received country-specific informaticn which permits it to make an independent ccnclusion as to the effectiveness of IAEA material control and acccunting safeguards to deter and detect diversion in Canada. With respect to physical security, NMSS has reviewed the program in Canada and found it adequate for the purpose of the export. ,f, m pm kww J4mes R. Shea, Director Office of International Programs Appendices: As stated above

. NOTE: Commissioner comments should be provided directly to the Office of the Secretary, by c.o.b. Friday, December 29, 1978 Commissioner staff office comments, if any, should be submitted to the Commissioners NLT December 27, 1978 , with an infor-mation copy to the Office of the Secretary. If the paper is of such a .~1ture that it requires additional time for analytical review and ccmment, the Commissioners and the Secretariat should be apprised of when comments may be expected. DISTRIBUTION: Commissicners Commission Staff Offices Exec Dir for Operations Secretariat

9 e APPENDIX A

a em ancy s D UNITED STATES / e fh y,4;' } NUCLEAR REGULATORY COMMISSION <l al o W ASHINGTON. D. C. 20555 x. + g -*T-* f4 '.J m.- bn ,a 10 / 0 ,0,....'* .v.-.u- -. h, m.v. i v i. r. n L - - w.c STAF CONCLUSIONS REGARDING PROPCSED LICENSE TO EX? ORT LCW ENRICHED u",... r. o.v 2 0 e. d.,,. sun nav .n In June 197o, Transnuclear ap: lied for a license :: exper: 779 kilograms of uranium, er.ricnec c 4.05% U-235 c Canada. The material, in :ne fccm cf UF6, will first be converted to uranium cxide and then to uranium car: ice After conversion, it fuel stacks by Elcorade Nuclear Limited in Ontario..

  • iti be snippe,. :: eitner Canac..lan eenerai tiectric in re erborougn,

.!v .. ope, u,ntarlo ic-assem: Ontaric or aestingnouse,vanaca Limitec in rar: n int: a:croximately 220 fuel bundles to make uc the eleventh fuel charce of

ne WR-1 nuclear research reac Or.

The WR-1 is a Canadian ouilt, tank-type, heavy water maceratec, crganic-cc:iec a0 meca*at research reactor utilizing icw-enricned uranium. I: is the Whi:esnell cwnec by Atc5ic Energy of Canaca, Limitec anc iccatec a: -.rinawa, Mani:cca, uanada. N. c.u lear researcn :sta:iisnment, ~ c -c recues Tor views, :ne executive eranch has (.scense to our June c.,nat issuance ci the pro;osed,11 cense wcuid nc: ce in ~.n re, concluded t. i i) the interests cf the US, inciucing :ne common :e'ense anc security, anc the material will be subjec to ali :ne terms anc ccndi;ior.s (2) confirmed tha:.

c. :ne n.greemen: Tor ucepera icn oe: ween t.ne,,: anc anaca.

These views and license acclica-icn analysis by the Executive Erancn were forsarded by tne State Department analysis of Novem er 5,1975. 2 r. w ?. c-A -" o. c.9. a. " *. # ^ ". ***'.s."..:.#^"., 3-r w i+ e

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UC v^o --.'4..s.e.l..v C. 2 e-r l..ia*.1c. v-. .L. o. 3 >v vvv i veo. was aise set forth in the Seo: ember 6,1975 cacie f cm :he A::mic Energy ,entrol = card c. naca. va v The staff has reviewec :ne sutfec: asolica:icn in lign: of tne consiceraticns below: o Saf ecua rds. The execr wiii be su jec to I AEA safeguards. As a party :: the Ncncroliferation Trea y (NPT), Canaca nas ... s a r.eguarCs on aii undertaken an c...D11 cation :C acceD: 1A -. c.. 4. 3,!

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s 2 Memorandum to the file o No Nuclear Exolosive Use. Also, as a party to the NPT, Canaoa has undertaken :ne 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 nuc1Mr weacons or other nuclear explosive devices. The staff therefore, believes that criterien (2) of the NNPA is cet. o Physical Security. The Executive Branch has assessed the physical security measures maintained in Canada with re-scect to nuclear material and facilitias and has found them adecuate for the material covered by this license. The Executive Branch has also advised tnat Canada impie-mented IAEA guidelines regarding the physical security for nuclear materials. In view of this, the staff believes that criterien (3) of the NNPA is met. It should be noted that the government of Canada has provided the written physical security assurance as recuired by 10 CFR 110.43(b). o Retransfer. The US-Canada Agreement prohibits the retransfer of any material sucolied by the US, beyond the jurisdiction of Canada without US aporoval to such retransfer, and then only if it is within the scope cf an agreement for ccoperation between the US and the other nation or gmup cf nations. Similarly, it pro-hibits 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 :nat criterion (4) of the NNPA is met. o Recrocessinc. The US-Canada exchange of notes alsc confirms tne understanding that any recrecessing or alteration of US-supplied material shall be cerformed only uten crior aporoval of the US. The staff therefore concludes that criterion (5) of the NNPA is met. c Sensitive Technolocy. The procosed excort does not invoive sensitive technolcgy. As more fully develo;ed in its memorancLa dated November 3, 197S, tne E.xecutive Brancn has determinec :nat Canada currently meets all the criteria cf :.L. 95-

242, including the recuirements of Section 125(a)(1) and the speci'ic criteria of Sections 127 and 125 and that Canada has adhered to all the ; revisions cf its Agreement for Cccperatien with the US.

3 Memorandum to the file The staff has ccncluded that issuance of the proposed license would be consistent with the recently enacted Nuclear Nonproliferation Act, including the specific criteria of Section 127. In view of all the considerations above, and as recuired by Section 57 of the Atomic Energy Act and 10 CFR 110.44, the staff has concluded that the e2ccrt to be made pursuant to the procosed license (1) wculd be subject to the terms and conditions of the Agreement for Cooperation between the US and Canada, and (2) would not be ininical to the common defense and security of the Unitec States or constitute an unreasonable risk to the public health and safety. 0 I 3cd$6M ,. Netri Mcore Senior Licensing Reviewer Office of International Programs

APPENDIX B

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9 APPENDIX C

F,- a E C.7 t,. ;, ATOw O ENE;",,y CC M is ON Fee,,og,,,,f Mh h o w b,. he. o,,, 'c CF n u. a

  • ws**.,.

u n;;= -- ~ ~- APPLICATION FOR LICENSE TC EXPCRT MNNO03 EYPRCCUCT. SCURCE, CR SP ECI AL NUCLEAR MATERI AL g g o

gg su cnt u t a n a r
ltca:e Care %% R ead Ir s t.citen s n Bac<

04 ?! :e a ppu:a nc% 2 a pa;..c a s ? s a g r e nty c t % c 1

ystav er ut ?iwat t :ts ?.s a l3 a..,e

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if fer =..urc e nw rial.. or P sre 'O f if for spe r:2; m.c;es t msien i n.i Par -' for:ra n -,r o f n x : e r n e. 2 n.n

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, s o m.

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/. Atomic Energy L' nergie Atomique / of Canada Limited du Canada, Limitse 4 Chak,.mver LaOcta:Cires nuc'esires -m< -w m 1 p..wclear g 3DOratories cc Cnah RWer -. m :3. ~... y.,..- .2 '. e... : c .. t m ;:... : :. '. 1 n. g.., 3.. v a.... s. myy,nX...a-.. y J. 'A.len.2.3 C v.,; s 4 t 4 o * : O..

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9 APPENDIX D

... _. m v n, m v.. _, ~. _ _. - _ - _ _ _ _ - _ _.. _ _

  • [.;3 [L T [ A..:.,

~^ 7;_^ '- 1% r 'Ti"'M M M "#__.? E U'PD' E*7AT ATf; _U... p Nec uctNst No V,-j y, ': N .i~ E,.a f, '.,. _.. e.c.

  • r.YPIRES p

0000 0 N, m ISNTOl334 E': E 11m.trii States of Arnen.ta tic r ci r' Nuclear Regulatory Commission pL s i.,. et, h,Y d '.-s a t *c c e A'em.c Energy Act CI 19f 4,0s Omenced.CPC 'ne 'ne IICensee. C Ucense is hereby issued to the licensee auther- .d I !ac r;:nizction Act of 1974 cnd tne regictions of the eng the encert of the meterials and/or production or ut ';zotion j %:7ar 2egvictory Commiss;on issued pursucnt theretc cmd n fcc.W.es Osted ce'ow, subsect to tr e terms and conditions herein. Fj 'i*'

  • thcree r-si:rements and recresemobons here'ofore mece *ay

@j ucta.se t wuct c:~s;c~u i~ rcesics coup'n P!.g 5[1E.2 . ~ 4 Atomic Energy of Canada Limited Transnuclear, Incorporated j ~.~e .a J 5E5 Lcesburg Pike Chalk River Nuclear Laboratories b- .i..,y; Falls Church, Virginia 22041 .x,tssChalk River,,0ntario d. Attention: Vicki Matson Canada, K0JIJO p. Y.. M g. ML ri Mq- . t.XIXXXX/.XITT,X INTEPJEDIME C0"SIJEE p H i s m e e~s c~n ~ c.oc~ ::v~en

g.,

..a-Canadian General Electric Co. N ps. 4 *' Eldcrado Muclear Limited 3 Dort Hope Ontario Canada Limited, Peterborouch, Ontario EI (S .i (conversion) Canada er WestinchoUse Canada $1 c,. Limited, Port Hope, Ontario O Canada p_ G G. (fabrication)

d.. ;

-[ . os-e se Misc-226 78-161/01 I cou~'" c' w~ct :tst~c'c~ Canada p.

. ~rm i :iseme~ e, ocioits c...c e.es g, t

".J _e ,tr l ~ Contained in 779.0 kilograms uranium, as s't %j 31.55 kilograms Uranium-235 uranium hexafluoride (UF ), enriched to [. 6

3 4.05 w/o maximum.
' ~

?! m.- m e 1 b 6 en page two of this license apply to this export. ilt ' W;j. Qnditi n' '!! '!// f / /////////////////////////////// EN D////////////////// // ///// / / // // // // // R,' : b-d 1. ~E I -.J Ei h ~ ~~ $,0 e y,.

4.

D.~t e,2 .4.-- Q :*' 'd.h .d -> N.. - i 4 M,j.3 ~

'?

'.e. ne, n.s ; cense nor cny r;gnt v eer this Ucense incil oc =ssigo- '-es s:t~tt ;s m ee.~u;s s. cst: at.cw r y tv 3 cact ec untst~timt

E -d y etman..se 'rensferred :n viciction of !Fe crovisiens cf te s_

~ E' - m 4.. At > ;c E ergy Act of 1954. es amenced end te Energy teorgen-Gerald G. Oplinc.er, n.ssis.an. Director 4-s G - ' ic. @p'N '. m Export /'moort and International

  • b *h i.. cense 's suc#ee e me >ght of recce'ure or cen'rci :y Section baIe9uards h 'n :F +e w., c E-ergy Act ef 1954, s emenced ne to =a v.,e Office of International Programs hU

@ :!* e Or:v's. ors of sc:d Ac*s. now or herec 'er ~n e**ect end 'o :d Pi ' '

0. r ce :ssu..:t j.---

r v,es ad r.g.,.chons or me N,c ecr Regvictory Commiss,cn. j i ven: m., a,._.-rra__n.s.- - -. __ _. - - - r r r vm,"v-7*vx'- v v v] - r -. 7. g.,pg.j _ A v,.y ' ' 1. <. - - - rr: Q .Y.: nv.. T. 6

rv v: .t. Pege : c' ? 8:ge! t .ar U.S. NUCLEAR REcCLATORY COMMISSION EXPORT LICENSE { ve..,.e,--, Conditions L! cense Numce" ^'" "--"- Condihon 1 - L;cer.see sh !' :ie with !be Cust:m: Cfeicer er ine ? stmeste !*: ::: es, :n :::. ?:en tc these otherwise reevirec, cf the Shi:cer s Execrt Cec:crct on ::ver:ng ecch execri cnd merk one of su:n c00 es ter transmittel to tr.e L.5. Nuciect Eegu-Ictory ommissien, sN::shingten. D.w..;n::... ire fellowing cecieret cn sncuid cc-c s cemecny cr be pieced en the a. nipper s tx cri seticrctions ter sucn ex::crts. n r-s ....ints snepr ent is ce:rg mcce cursucet to see mc !icerse numcer, specific i license number >! file 0 ct (location of Customs office where license is filed, I t on (date license wcs filed;. Tnts license ex: res en (expiration dcte of license), cnd the unsNacec b ! nce remcining en tnis Ecease :s sut*.:;ent ' f. cover the shipment desented :n this cecieration. Condition 2 - Ex rts cutheri:ed in :nv ::untrv cr destinction, exce t C:ur y Greses C, 5. W i X, Y, cnd Z.n ?:rt 370, Sve !er ent NO. ', cf ..e Ccmcreners,.e Ex c-Screcu.e {, cf tre U.S. Depcr+ ment of C:mererce. L, E Condition 3 - This hce se :: vers eniy tr.e nu: ecr centent cf re meteric:. i Condition 4 T' e r crenci + ce execrte: vnce tnis i:ense src.i ce sn ::ec.c

::nce ne r

tre prys:cci protection recuiremer's ter see::ct nuc ear -Otenci.c.V s -<,. Cond.t. ion s - eci:1 nuc!ect materici cuiner.:e fer exper-uncer ins :ense snc9! net ce i I.. transecrrec outs.ce tre Urutec : teres n ecssercer.::r en: ci :rcit ir sr cr erts exceeding (1) 20 grcms or 2' :.nes. ucr.ever :s.ess, :f :!uten.u-- :r urcrium l~ a; --, er M, ::0 g. :ms r ure num a:-. 4 Condition 6-7his h:erse cumer.:es er:cr cra crc ::es n:t cut cri:e ne e:e c-crys ::. =cssess.

n. :P use cf ine nuc'ece meter;cL I

Condition 7 Tre 1:e-see snc!: ::r"ciete ca: sucrw on NRC? m 7.s. *: e en sr.:r ent :- i tI scurce ":ter ei ex Orte - un er ?nts.;Cerse. l Condition 8 ~ e 'icemee a: : wse tre MC.c e eve-rere 2 crv :ren ce - e es,gne. .--m=.,w..,,, f w- .n, i ' ~.4

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