ML19291C384

Discusses NRC Review of Proposed Issuance of License for Perchiney Ugine Kuhlman Development,Inc to Export Highly Enriched U to France.Recommends Issuance of License

ML19291C384
Person / Time
Issue date:	12/26/1979
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-79-616A, NUDOCS 8001240328
Download: ML19291C384 (3)

Text

{{#Wiki_filter:- December 26, 1979 SECY-79-616A For: The Commissioners From: CO pg ggg, QTION Executive Director for Operations M f d' Thru:

Subject:

APPROVAL OF A PROPOSED LICENSE TO EXPORT HIGH-ENRICHED URANIUM TO FRANCE (LICENSE APPLICATION NO. XSNM-1537, SECY-79-616)

Purpose:

Comission review of proposed issuance of subject license to Pechiney Ugine Kuhlman Development Incorporated. Review Dates: 60-day period expires on January 12, 1980 120-day period expires on March 13, 1980 Discussion: In July 1979, Pechiney Ugine Kuhlman Development Incor-porated filed an application for a license to export 28.5 kilog:ams of uranium enriched to 45.5% U-235 to France. The initial application stated that the material, in the form of uranium metal, will be leased from DOE and shipped to CERCA for its fuel fabrication research and development program and for irradiation of low enriched fuel elements. The EURATOM letter of assurance dated November 2, 1979 stated that the material will be used by CERCA for fuel fabrication research and development programs similar to the U.S. Reduced Enrichment Research and Test Reactor (RERTR) Program and also for the irradiation of low-enriched fuel elements at the CERCA facil ities. However, in a recent conversation with the applicant to further clarify the end use, the staff was advised that the material covered by the proposed license is actually intended for use as working stock for the initial charge to the fabrication facilities at CERCA to produce the prototype fuel elements for laboratory examinations and is not intended for irradiation tests. The applicant advises that applications for material which will be utilized in the various research reactors are forthcoming.

Contact:

Janice Dunn-Lee (492-7984) M R. Peterson (492-8155) 1795 206 soo12403 M

. Discussion: In response to our July 13, 1979 request for views on the (continued) proposed export to EURATOM, the Executive Branch has (1) concluded that issuance of the proposed license would not be inimical to the comon defense and security of the United States; (2) confirmed that the material will be subject to all the terms and conditions of the US-EURATOM Additional Agreement for Cooperation; (3) noted that the members of EURATOM have adhered to the provisions of the Additional Agreement for Cooperation with the United States; and (4) advised that there were no material changed circum-stances since submission of its detailed analysis of December 8,1978 on proposed exports of high enriched uranium to EURATOM (see XSNM-1241, SECY-78-645A; XSNM-1238, SECY 78-641 A; XSNM-1232, SECY-78-640A; and XSNM-1212, SECY 78-639A). The staff notes that France, as a nuclear weapon state, is not subject to IAEA safeguards. Although France will voluntarily submit some facilities to agency safeguards, the staff is not aware that the CERCA facility is under a facility attachment. EURATOM safeguards, nevertheless, will continue to apply to the CERCA facility. The staff believes that there are no material changed circum-stances concerning exports to EURATOM which would affect the Commission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g. XSNM-1232, SECY 78-64A and XSNM-1483, SECY 79-218C) for similar high enriched material to EURATOM after Commission review. Accord-ingly, the staff believes that this proposed license to France may be issued. This procedure is authorized by g 110.44(a) (2) of Part 110 and is based on section 126(a)(2) of the AEA as amended by the Nuclear Non-Proliferation Act of 1978. The Commission will note that the material requested in the application is medium enriched uranium intended for research and development purposes at CERCA in the development of a program to fabricate high density fuel plates. This unique project is being perfomed in conformance with U.S. policy direction to reduce U-235 enrichments and minimize HEU inventory. The following documents are forwarded for Commission review of the subject application: (1) application of July 5,1979 (Appendix A); (2) Executive Branch views of November 9,1979 (Appendix B); and (3) copy of proposed license (Appendix C). This action involves no new resource requirements. 1795 20T"

. Sf,[echnical NMSS currently has very little information on the application y of safeguards at French facilities, and no information concerning the specific implementation requirements imposed at CERCA by EURATOM. A senior DOE analyst has pointed out that EURATOM has a resident inspector at CERCA. Under the French voluntary agreement with the IAEA, France will notify the IAEA of the nuclear material and facilities to be covered by the safeguards agreement. However, it is unlikely that IAEA safeguards will ba applied to the exported material at CERCA in the near future. NMSS has reviewed the physical security program in France and found it adequate for the purpose of this export. Recommendation: That the Commission authorize the issuance of the proposed license to Pechiney Ugine Kuhlman Development Incorporated. Coordination: OELD has no legal objection. NMSS views are stated above. ~_ r i g ames R. Shea, Director Office of International Programs

Enclosures:

As stated NOTE: Comissioner coments should be provided directly to the Office of the Secretary, by c.o.b. Monday, January 7, 1980 Commission staff office coments, if any, should be submitted to the Commis-sioners NLT January 3, 1980 , with an infomation copy to the Office of the Secretary. If the paper is of such a nature that it requires additional time for analytical review and coment, the Commissioners and the Secretariat should be apprised of when comments may be expected. DISTRIBUTION: Commissioners Commission Staff Offices Executive Director for Operations Secretariat 1795 208

(,..S. NUCLEAR REGULATORY COMMISSION (.. FORM NPC-7 APPROVED BY GAO (7-781 8180225(R0362) 19CPRiso-APPLICATION FOR LICENSE TO EXPORT NUCLEAR MATERIAL AND EQUIPMENT (See /mtrueriom on Reverse,8

1. APPLICANT'S

e. DATE OP APPLICATION D. APPLICANT *$ REFERENCE 2.NRC l a. IJCESISE NO.. -

m. DOCKET 900 XsMm6153'1 - \\ t L a ~110 usE

- Julv 5, 1979 PhC/rml/5384 uSE

3. APPLICANT *3 NAME AND ADDRESS l RIS

4. SUPPLIER'S NAME AND ADDRESS R&B (comosete it nooincant as not asooteer or materiais Pechinev Ugine Kuhlmann Develoement Inc.

D. STRE ET ADDRESS a.NAME 825 Third Avenue D.O.E. - Oakridge Ooerations Of fice

c. CITY STATE ZIP CCOE D. STREET ACORESS New York N.Y.

10022 4. T E LE P MO N E N U M S E R (Aree Gode - tvumoer - Esrensson/

c. CITY STATE ZIP CODE (212) 758 - 2700 Oak Ridge Tenn.

5. FIRST SHIPMENT

6. FINAL SHIPMENT 7. APPLICANT *S CCNTRACTUAL 8. PROPOSED LICENSE

9. U.S. DEPARTMENT OF ENERGY SCHEDULED SCHEDULED DELIVERY DATE EXPtRATION DATE CONTR ACT NO. /// Known/

Oct. 1979 Jan. 1980 1-vear

10. ULTIMATE CONSIGNEE

• M '".WD?_$

11. ULTIMATE END US!!

~

a. NAME (Compagnie pour l' Etude et la Rsalisa-CERCA tion de Combustibles Atomicues)

Fuel fabrication research and development D. STREET ACORESS program. 41, avenue Montaigne Irradiation of low enrichment fuel elements. I c. CITY - STATE - COUNTRY !75008 Paris FRANCE tie. EST.DATE OF FIRST USE .12. INTERMEDI ATE CONSIGNEE RIS C#e?.% +r?iW 13. INTERMEDIATE END USE h. ~ la.NAME i

b. STREET ACORESS c CITY - STATE - COUNTRY 13a EST. DATE OF PIRST USE

14. INTERMEDIATE CONSIGNEE ptIE' WN%'a~*'? i

15. INTERMEDIATE END USE

' v' m

• 2 a.NAME D. STREET ADORESS

c. CITY - STATE - COUNTRY 15s. EST. DATE OF FIRST USE 16.

17. DESCRIPTION

18. MAX. ELEMENT 19. MAX. 20. MAX 21.

NRC (Inchoce enernocal andperysical form or nuclear matenal;pn costar value of USE nucteer eousoment and components] WElGHT WT. % ISOTOP5 WT. UNIT U metal 28.5 45.5 13 kg. U = 2 h k h g= 1195 209 Ms 3 L m4 a p -m e 8 o

12. COUNTRY OF ORIGIN.-

lC -W 23. COUNTRY OF ORIGINrSNM

24. COUSTRIES WHl5 ATTACH SOURCE MATERIAL WHERE ENRICHED OR PRODUCED SAFEGUARDS (If Koonn/

U.S. U.S. Ld

25. ADDITIONAL INFORMATION (Use secarste sneet sf neceawy)

CERCA's objectives are similar to thos of the U.S. Reduced Enrichment Research and Test Reactor (RETR) program. See attached letters. f 2s. Th..oosacent certtfi that igie sopsiention is oreo.r.d in conforme Y with Titi. to. Code of Federsi Reguistsons. and that all information in thas seasicanon is correct to the b.st of. iia /her knows.dee. Philippe Courcier

s. SIGNATURE

b. TITLE

• AUTHORIZED OFFICIAL W ee W esident. Nuclem-Div.

t i ( g. j 5 Department of Energy MAR 141970 Washington, D.C. 20585 Mr. Philippe Courcier Pechiney Ugine Knh1mann Development Inc. 825 Third Avenue \\ New York, New York 10022 'Dert Mr. Courciar: This is in response to your letter toiDr. Richard Lewis, of the U.S. Department of State, in which you expressed interest in leasing up to 33 kilograms of uranium metal enriched to 45% U-235 and up to 75 kilograms of uranium metal enriched to 20% U-235 to be used by CERCA in its fuel fabrication research and development program, with objectives similar to those of the US Reduced Enrichment Research and Test Reactor (RERTR) program. Since the proposed use of this material will assist the Department of Energy in obtaining its RERTR program goals for the development of fuel that will enable the use of reduced enrichment uranium in most research and test reactors presently using fully enriched uranium, we will be pleased to lease up to 33 kilograms of uranium metal enriched to 45% in U-235 and up to 75 kilograms of uranium metal enriched up to 20% in U-235. At present the base charge value of one kilogram ot' 45% enriched uranium is $14,571.41 and $6,189.50 per kilogram of 19.95% enriched uranium. The added charge for supply as metal will approximate $330 per kilogram of uranium. The lease charges are 12% per annum on the base charge value of the material. Complete terms and conditions will be in-cluded in the lease agreement for this material. l-Reprocessing charges vary with the amount of material reprocessed, and are subject to escalation. Presently they are as follows: Reprocessing charges are normally calculatea on a base charge of $360 per kilogram of the total weight of uranium and aluminum metal in the batch. This charge is subject to i escalation and at the present time the base charge plus s 4 1795 210'

.a ( \\ Mr. Philippe Courcier escalation is $402 per kilogram of uranium and aluminum metal. There is, however, a minimum charge of $30,000 plus $175 per kilogram of the total weight of uranium and aluminem metal in the batch which will be made if the normal charge is less than the minimwn. Burnup charges will, of course, vary with the irradiation history of the material. For example, if 10% burnup is assumed in one kilogram of uranium enriched to 45% the burn-up charge will be approximately $1500. In order to expedite delivery of this material, it is suggested tha't you apply to the US Nuclear Regulatory Commission for an export license as soon as possiblei In the meantime, we will advise our office at Oak Ridge to prepare the appropriate lease arrangement which will be forwarded to the Euratom Supply Agency and CERCA for review. As part of the lease arrangements, we would need to provide for the Department of Energy's receipt of periodic reports on the status of the material as it progresses through the fabrication and irradiation stages in your development program. Also, we assume from CERCA's presentation at the Research Reactor Fuel Fabricators meeting held at our Argonne National Laboratory last November, that some of the test plates and elements will be sent to the Oak Ridge National Laboratory for irradiation in the Oak Ridge Research Reactor. Ar you know, transfer of this material to countries outside of the European Community, will require prior US Government approval. If you need assistance in your application to the Nuclear Regulatory Commission, please let us know. Sincerely, ( W b Eh(rold D. L (Bengalsdor. Director for Nuclear

ffairs, International Programs cc:

Joe Marchal I i l 1795 211' e

k A ~ t S 0s,s.n en d s aqv ARCONNE NATIONAL LABORATORY 9700 Soodi CASS AVENUE, Angow. fliNOIS 60439 TdEpkMM2M72-6363 December 13, 1978 Mr. Philippe Courcier Vice President, Nuclear Division Pechiney Ugine Kuhlm nn Development, Inc. 825 Third Avenue New York, New York 10022

Dear Mr. Courcier:

/ Thank you for your letter of November 16, 1978, confirming CERCA's willing-ness to provide att their expense fuel elements for irradiation in the ORR. We feel that CERCA's participation in the element irradiation program is a very important step towards the goal of achieving cocmercial availability of reduced-enrichment fuels. In your telephone call to Dr. Snelgrove on December 4,1978, you indicated that you would be meeting with CERCA personnel in France during the week of December 18. We vill not be able to provide complete fuel specifications for the irradiation program by that time. However, the enclosed information allows a general understanding of the proposed element irradiation tests in ORR and may flag potential problem areas which the fuel specifications that we propose may present for CERCA participation. I am enclosing a copy of a memorandum explaining the proposed experiment program. Further negotiations with Oak Ridge National Laboratory and with the fuel fabricators will be necessary before the program is finalized. The emphasis of the near-term irradiation program is upon irradiating elements with uranium loadings in the fuel meat comparable to that in use today, i.e., 42 ws;.% ur;ulium.

• We would welcome, however, the possibility of irradiating also fuels with higher uranium content. You indicated to me at our meeting at ANL on November 8 that CERCA would be interested in providing elements with high uranium content (55 ut.% or 60 ut.% uranium) for these tests, possibly in the form of special elements containing thicker, flat plates. Your followup letter indicates CERCA's willingness to provide some heavily loaded plates.

If CERCA were the only fabri-cator to provide the heavily loaded fuel, it would be more appropriate for an assembled element to be provided. I am confident that a special element could be accommodated in the ORR, but extra effort will be required to secure the necessary approvals. End box castings (or end nozzles) to expedite the con-formity of CERCA elements to the ORR requirements can be provided by the RERTR Program. I am also enclosing copies of ORR fuel element specifications and production drawings for the current fully-enriched fuel. In order to expedite the approval process for the reduced-enrichment elements we propose to use the same specifica-tions wherever possible. Consideration will be given to requested chans,es in the specifications as long as a fuel element of comparable quality results. The fuel loading currently being considered contains approximately 275 grams of 235g per fuel alement, with an enrichment of 45%. Enrichment of 20% may be considered for more heavily loaded, thicker fuel plates. Further studies on,ghe og g will be completed within the next few weeks. }[9 (, I (_ The1.hrasiTyof Ckczo Angow Un95iT!ES AssocuriON

l y &. Philippe Courcier \\ December D,1978 I would suggest that af ter examination of the enclosed documents CERCA personnel evaluate whether or not the specifications fit with their production procedures, and let us know of any specification changes which they might sug-gest. In addition we need to know the amount of uranium required in excess of that actually contained in the fuel elements. I ho.pe that we can meet with you early in January to finalize the details of CERCA's participation. I look forward to a pleasant and productive association with CERCA and, personally, with you in this endeavor. Sincerely, A ~ & d/W ^ A Armando Travelli Manager,,RERTR Program AT/ej Enclosures cc: W. W. Ballard J. A. Kyger J. E. Matos A. E. Mravca J. L. Snelgrove D. Stahl C. E. Till 1795 213

hd M. Alb D P D85 Q i3ky MSNSS 0 DEPARTMENT OF STATE g y y o / 5 :T 7 g ,y ...~ o.c.== BUREAU OF OCEANS AND INTERNATIONAL //O O8 N ENVIRONMENTAL AND SCIENTIFIC AFFAIRS y ?! 5-5 94 Si! '/d NOV 0 91973 5>$ GI I' E"if n Mr. James R. Shea SQ =5 '3 m o Director of International Programs 5N .a United States Nuclear Regulatory Commission s Room 6714 - MNBB Bethesda, Maryland

Dear Mr. Shea:

This letter is in response to the Commission's let-ter dated July 13, 1979, requesting Executive Branch views as to whether issuance of an export license in cz, accordance with the application bereinaf ter described would be inimical to the common defense and security of the United States and whether the proposed export meets the applicable criteria of the Atomic Energy Act of 1954, a as amended by the Nuclear Non-Proliferation Act of 1978: NRC No. XSNM01537 -- Application by Pechiney Ugine Kuhlmann Development Inc. for authori- =ation to export to France 13 kilograms of U-235 contained in 28.5 kil.ograms of uranium enriched to a maximum of 45.5 percent. This enriched uranium in metallic form will be shipped to Compagnie pour l' Etude et la Real-isation de Combustibles Atomiques (CERCA) for fabrication of prototype high-density, lower enrichment fuel elements and plates. The fuel elements are intended for test irradiation in various research reactors, including the Oak Ridge Research Reactor (ORR). The proposed export to France would take place pur-suant to the Additional Agreement for Cooperation Between the United States and the European Atomic Energy Community (EURATOM) as confirmed in a letter from the. Delegation of the Commission of the European Communities, EURATOM has adhered to the provisions of its Agreement for Cooperation with the United States. 1795 214 o jy3 6

Sw . 3,:.4 .+

1. M Re-export of the fabricated fuel elements to countries I?;$

outside of the European Community would be subject to De-g[ partment of Energy authori=ation as subsequent arrangements. .6 .es The Executive Branch has reviewed this application and 3yj concluded that the requirements of the Atomic Energy Act,

• i

~ as amended, have been met and that the proposed export to France, a member of the European Atomic Energy Community ,w (EURATOM), for fabrication of fuel elements will not be }l.M inimical to the common defense and security of the United ts States. A detailed analysis for EURATOM was submitted .M December 8, 1978 for NRC license application Nos. XSNM 1241,

)y 1238, 1232 and 1212.

There has been no material change in es circumstances since that submission. ..y. ;

[

on the basis of the foregoing, the Executive Branch i# recommends that the license for export to France and re- .) export within the European Community, be issued. f5 '1j Sincerely, ] 9 Louis V. ' senzo Deputy Assista t Secretary 3.3 s Enclosure : Assurance letter e i-] 2 1795 215

DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES EUfUCDM 3UPP1Y AGENCY November 2, 1979 Mr. Vance H. Hudgins Assistant Director for Politico-Military Security Affairs Division of International Security Affairs Depart:anent of Energy Washington, D.C. 20585

Subject:

Pechiney Ugine Kuhlmann Development, Inc. eplication PhC/rml/5384 dated July 5,1979 for France - OWol537 We certify that the material =rntioned in this applicatio:, namely 13 kilograms of U215 contained in 28.5 kilograms of uran'.um metal,. and the transfer or this material will be subject to all terms and conditions of the Additional Agreement for CooperatioL, dated.7uly 25, 1960, as amended. Further, we certify that CERCA, Paris, France, as ultimate consigmee, is authorired by EURATOM to receive and possess this material pursuant to the aforementioned Agreement for Cooperatier.. The material will be used by CERCA for fuel fabrication research and development programs similar to the U.S. RETR pro-gram and also for the irradiation of low enriched fuel elements at the CERCA facilities in - France. Sincerely, L M. Goppek ajs cc: Robin DeLabarre, State Department Ms. Betty Wright, NRC Mr. Philippe Courcier, Pechiney Ugine Knhlenn Development, Inc 1795 216 2100 M SD - Sune 707 Wastwgon DC 2 c37/ tassonone: (202) 882 9500 / tenc %erungeon WU 88539 (EUPCCW WSH)

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