ML19291C397
| ML19291C397 | |
| Person / Time | |
|---|---|
| Issue date: | 12/27/1979 |
| From: | James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| Shared Package | |
| ML19291C398 | List: |
| References | |
| SECY-79-640A, NUDOCS 8001240356 | |
| Download: ML19291C397 (5) | |
Text
.
og +
2 Decen.ter 27, 1979 SECY-79-640A COMMISSIONER ACTION For:
The Comissioners From:
James R. Shea, Director Office of International Progra;ns Executive Director for Operations M h u u Thru:
Subject:
APPROVAL OF A PROPOSED LICENSE TO EXPORT SOURCE MATERIAL TO FRANCE (XUO8427, SECY 79-640)
Purpose:
Comission review of proposed issuance of subject license to Edlow International Company.
Review Dates:
60-day period expires on January 26, 1980 120-day period expires on March 27,1980 Discussion:
In July 1978, Edlow International Company applied for a license to export 68,500 kilograms of natural uranium as UF6 to France for enrichment at COGEMA's Pierrelatte (EUR0DIF) facility.
The material will subsequently be returned to the US for fabrication by General Electric in its Wilmington, North Carolina facility.
The completed fuel assemblies are intended for reexport to Switzerland for use in fueling the Kernkraftwerk Kaiseraugst power reactor in Switzerland, a 925 megawatt electric boiling water reactor.
In response to our August 10, 1978 request for views, the Executive Branch has (1) concluded that issuance of the license would not be inimical to the common defense and security of the United States; (2) confirmed that the material would be subject to the US-Switzerland Agreement for Cooperation, and during the time the material is in France for enrichment, the US-EURATOM Additional Agreement for Cooperation; (3) advised that Switzerland and the members of EURATOM have adhered to the provisions of their Agreements for Cooperation; and (4) concluded that the requirements of the Atomic Energy Act and P.L.95-242 have been met (State memorandum of November 27,1979 at Appendix B).
Contact:
J. D. Lee (492-7984) 1795 272 M. R. Peterson (492-8155) 800124 0
, Among other things, the Executive Branch memorandum notes that:
0 The export of this natural uranium for enrichment (a first of its kind) is subject to Section 402(a) of the NNPA of 1978.
It is the Executive Branch's view that pending conclusion of negotiations to amend the US-EURATOM Additional Agreement for Cooperation, export for enrichment to France may take place pursuant to the present Agreement with US approval.
The procedures for such approval are identical to those for subsequent arrangements.
O The Department of Energy, as the lead agency for preparation of subsequent arrangements, has initiated the procedures for approval under Section 402(a) and also under 10 CFR 810. The Executive Branch has also requested the Commission to consider the proposed export to France and subsequent export of LEU from the US to Switzerland after fabrication in this country, con-currently with DOE approval and notification in the Federal Register.
O The proposed export to France for low enrichment and subsequent use in the Swiss Kaiseraugst reactor would be in the interest of the US Government in promoting a constructive atmosphere with respect to the ongoing US-EURATOM renegotiation of the Additional Agreement for Cooperation.
It would also be an encouraging gesture toward Switzerland, the ultimate recipient, a country which shares US nonproliferation goals.
Switzerland, as a party to the NPT, has accepted IAEA safeguards for all its nuclear installations.
The staff notes that a facility attachment for the Kaiseraugst reactor is currently under negotiation.
(License No. XR-127, issued on November 20, 1978, authorized the export of the Kaiseraugst reactor, which is scheduled for commercial operation in October 1983).
With respect to the COGEMA facility the staff notes that France, as a nuclear weapon state, is not subject to IAEA safegua rds. Although France will voluntarily submit some facilities to Agency safeguards, the staff is not aware that the COGEMA facility is under a facility attachment.'
EURATOM safeguards, nevertheless, will continue to ~ apply to the C0GEMA facility.
1795 273
, The staff is of the o' pinion that EURATOM meets criteria (1), (2), and (3) of section 127 of the Atomic Energy Act of 1954, as amended by the NNPA, or their equivalent.
Under section 126(a)(2), exports to EURATOM are exempted from criteria 4 and 5 until March 10, 1980 since EURATOM has agreed to negotiations as called for in section 404(a) of the NNPA.
The staff believes that there are no material changed circumstances concerning exports to France 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 material to France after Commission review.
Accordingly, the staff believes that this proposed export license should be issued.
This procedure is authorized by 9110.44(a)(2) of Part 110 and is based on section 126(a)(2) of the AEA as amended by the NNPA of 1978.
(The staff wishes to note at this time that the application at hand is being considered for only the export of source material to France and not the subsequent export for use in the Swiss reactor.)
The Executive Branch has requested that the Commission give this export license application expeditious consideration in view of the time which has passed since receipt of the appli-cation, while the Department of Energy concurrently completes the necessary actions under section 402(a) and 10 CFR 810
-(including consultation with NR C).
The following documents are forwarded for Commission review of the subject application: (1) application of July 26, 1978 and letter of June 19,1979 (Appendix A); (2) Executive Branch views of November 27,1979 (Appendix B); and (3) copy of proposed license (Appendix C).
This action involves no new resource requirements.
NMSS Technical NMSS currently has very little information on the application Review:
of safeguards at French facilities, and no information con-cerning the safeguards implementation requirements imposed by EURATOM at the EURODIF facility.
It is unlikely that IAEA safeguards will be applied to this material at EURODIF.
NMSS has reviewed the physical protection program in France' and found it adequate for the purpose of this export.
1795 274
g e '
Recommendation:
That the Commission:
1.
Approve issuance of the proposed license to Edlow International Company.
2.
Note that the staff will, when consulted by DOE, indicate that NRC has no objection to (a) the authorization of the proposed enrichcent activity pursuant to Section 402(a) of the Atomic Energy Act and (b) the related 10 CFR 810 authorization.
3.
Note that the staff will not issue the license until NRC has been notified by the Department of Energy that the Section 402(a) and 10 CFR 810 authorizations have been approved.
Coordination:
ELD has no legal' objection.
NMSS comments are as stated above.
l9 00 rii James,. S ea, Director Offi of International Programs
Enclosures:
As stated Commissioners' comments should be provided directly to the Office of the Secretary by c.o.b. Tuesday, January 8, 1980.
Commission Staff Office comments, if any, should be submitted to the Commissioners If the NLT January 4, 1980, with an information copy to the Office of the Secretary.
paper is of such a nature that it requires additional time for analytical review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.
DISTRIBUTION Commissioners Commission Staff Offices Exec Dir for Operations Secretariat 1795 275
D i
e i
APPENDIX A Aw o.
S.
a 1795 276