ML19309H062

Summarizes Status of Ente Nazionale Per Lenergia Elettrica Application for License to Export 20,000 Metric Tons of Depleted U in Form of U Hexafluoride to France.Recommends License Be Issued

ML19309H062
Person / Time
Issue date:	03/17/1980
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
TASK-CA, TASK-SE SECY-80-103A, NUDOCS 8005080283
Download: ML19309H062 (7)

Text

,

8005080233 March 17, 1980

__SECY 80-103A COMMISSIONER ACTION 1

For:

The Commissioners From:

James R. Shea Director Office of International Programs h

(6 %

Thru:

Executive Director for Operations

Subject:

APPROVAL OF A PROPOSED LICENSE TO EXPORT SOURCE MATERIAL TO FRANCE (LICENSE APPLICATION NO. XUO8473, SECY-30-103) ~

Purpose:

Commission review of proposed issuance of subject license to the U.S. Representative Office of ENEL (EnteNaziona?

per l'Energia Elettrica).

Review Dates:

60-day period expires on April 11, 1980.

120-day period expires on June 10, 1980.

Discussion:

In September 1979 the l'.S. Representative Office of ENEL applied for a license to export 20,000 metric tons of depleted uranium to 1

France for use as feed raterial for enrichment at EURODIF. The material,in the form of uranium hexafluoride,has an average 0.3%

assay of U-235. The natural uranium produced through the enrich-ment of this depleted uranium will be used as feed material for subsequent enrichment for fueling various reactors in the European Community. The 20,000 tons of depleted uranium,after enrichment, will provide sufficient fuel for four to five reloads for standard light water reactors.

SECY-79-365 noted that normally this type of enrichment arrangement would not be economical.

However, ENEL has committed itself to excessive enrichment contracts with EURODIF's Tricastin facility (France) and Technabexport (USSR).

Rather than pay cancellation costs of these contracts (80% in the case of EURODIF), ENEL has decided that it would be most economical to utilize its excess SWU commitments at EUR0DIF to enrich depleted uranium.

1 In response to our September 24, 1979 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 l

United States; (2) confirmed that the material will be subject to the US-EURATOM Additional Agreement for Cooperation; (3) noted that the members of EURATOM have adhered to the provisions of its

Contact:

R. Peterson, IP (49-28155)

Lee, IP (49-27984)

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Discussion:

Agreement for Cooperation; (4) concluded that the requirements (Continued) of the Atomic Energy Act as amended by P.L 95-242 have been met, and (5) advised that there were no material changed circumstances since submission of its detailed analysis of November 27, 1979 on a similar proposed export to EURATOM (see XUO8427,SECY-79-640).

Among other things, the Executive Branch memorandum notes that:

- The export of this depleted uranium for enrichment is subject to Section 402(a) of the NNPA of 1978.

Pending conclusion of negotiations to amend the US-EURATOM Agreement for Cooperation, exportr for enrichment to any member of EURATOM may take place pursuant to the present Agreement with US approval. The pro-cedures for such approval are identical to those for subsequent arrangements.

- The Department of Energy, as lead agency fee preparation of subsequent arrangements, has completed the necessary actions for.

approval under Section 402(a).

2

- With respect to material scheduled for shipment after March 10, 1980, it is the Executive Branch's view that license XUO8473 remain valid after March 10, 1980 provided that the Executive i

Branch notifies the NRC that either the President has made the necessary determination under Section 126a(2) of the Atomic Energy Act extending the duration of the first proviso of that Section for each 12-month period during the term of the license, or EURATOM meets the requirements of Section 126 of the Act.

The Executive Branch recommends that this proviso be made a condition of the license.

o The staff wishes to note that the President has issued Executive Order 12193 dated February 12, 1980 extending the exemption of EURATOM from the requirements of Section 127(4) and (5) of the Atomic Energy Act, as amended, for a period of twelve months through March 10, 1981.. A condition is being added to the license to extend the validity of the. license after March 10, 1981 if.

(1) the Presidentdss.ues_.an. Executive Order providing for further extension. pursuant to Section 126a(2) of the Act, or (2) EURATOM.

has met the requirements of Section 127 of the Act, including criteria (4) and (5).

l With respect to the EURODIF facility, 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 EURODIF facility is under a facility attachment.

EURATOM safeguards, nevertheless, will continue to apply to the EURODIF facility.

l

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Discussion:

In accordance with the provisions of Section 402(a) of the NNPA, (Continued) a notice of proposed subsequent arrangement for export of this material for enrichment was published in the Federal Register on October 3,1979 (Vol. 44, No. 243, page 56979).

Section 402(a) also requires that the Secretaries of State and Energy determine whether any commitments from the recipient (France) are necessary, prior to the submission of Executive Branch views on such exports.

By letter dated February 22, 1980, the Executive Branch advised the staff that _it has determined that "no commitment" is necessary

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~~ s required and has approved enrichment of this material to France.

a The staff believes that there are no material changed circumstances concerning exports to France which would affect the Ccmmission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g., XSNM-1232, SECY-78-640A, and XSNM-1537, SECY-79-616A) for material to France after Commission review. Accordingly, the staff believes that this proposed export license should be issued. This procedure is authorized by ll10.44(a)(2) of Part 110 and is based on Section 126(a)(2) of the AEA as amended by the NNPA of 1978.

The following documents are forwarded for Commission review of the subject application: (1) application of September 12, 1979 (Appandix A);

(2) Executive Branch views of February 7,1980 (Appendix B); (3) copy of Federal Register notice of October 3,1979 (Appendix C); (4) copy of letter from Mosenzo to Shea dated February 22,1980 (Appendix D);

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and (5) copy'of pFoposed license (Appendix E).

This action involves no new resource requirements.

NMSS Technical NMSS has very little information on the application of safeguards Review at facilities in France, and no information on specific implemen-tation requirements imposed by EURATOM at the Tricastin EURODIF facility, where the depeleted U will be enriched to the level of natural U.

France has signed a safeguards agreement with the IAEA under its voluntary offer, but it is unlikely that this agreement will be put into effect and implemented in the near future. NMSS also has no information as to whether the Tricastin EUR0DIF facility will be listed as eligible for application of IAEA safeguards.

Further, NMSS is unable to make an at essment of safeguards adequacy for the follow-on conversion and the fuel fabrication l

facilities, or the reactors to receive the finished fuel made i

from this " feed" material, because they are not identified in the application. NMSS does note that the application states all

4 recipient reactors would be in EURATOM countries, so that internal re-transfers would be under the EURATOM Agreement for Cooperation. However, some of the facilities covered by the EURATOM /IAEA safeguards agreement still do not have facility attachments. NMSS notes that during discussion on a previous export (XSNM-1483), two Commissioners stated that they did not wish, in the future, to be put in the position of "in effect approving re-exports" which they had not

" examined in detail."

NMSS has reviewed the physical security program in France and found it adequate for the purposes of this export.

IP notes NMSS' reference above to License XSNM-1483 and the fact that two Commissioners stated they did not wish fn the 3

future, to be put in the position of approving re-exports which they had not examined in detail.

XSNM-1483 involved approximately 45 kilograms of uranium enriched to a maximum of 45% U-235, destined for a number of research reactors both in and outside of EURATOM..The two Commissioners were concerned about the reduced approval authority the Commission would have over the subsequent MB-10 retransfer requests for reexport of the material outside of EURATOM. The present application, in contrast, does not contemplate any subsequent reexport beyond EURATOM. Although the specific users of the material under the proposed license are unknown at this time, this application involves depleted uranium for enrichment and ultimate use in power reactors entirely within EURATOM. In addition, while some of the facilities in EURATOM which may use the material may not have completed facility attachments (they may not even yet be under construction) IP is not aware of any potential safeguards problem with regard to power reactors utilizing low-enriched uranium in EURATOM which would warrant delaying action on this application.

Recommendation:

That the Conni.ssioners approve issuanca of the proposed license to ENEL.

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Coordination:

ELD has no legal objection. NMSS comments are as stated above.

6 ' '. 4 !i50

(

James.R.jShea, Director Office of International Programs cr. closures:

As stated Commissioners' comments should be provided directly to the Office of the Secretary by c.o.b. Wednesday, March 26, 1980.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT March 24, 1980, with an information copy to the Office of the Secretary.

If the 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

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Reference:

AG5/033 e u.

COncerning DGL's application for the export of 20,000 metric' tans cf depleted uranium dated Septecher,12, 1979:

The pr: duct mate' rial and the generated tails resulting from the e:-ichment are subject to the terms and conditions of the U.S.-E JRATOM Additional Agreement for Cooperation and any transfer of the product material and/or tails outside the Communit y vould require prior approval from the U.S.

Government.

ON SEHALF OF THE EURATOM SUPPLY AGENCY l

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f fice of Interna-icnal Programs T.3. Nuclear *:egula re-f C,:m:.ission Washington, D.C.

20555 Oear Mr. Moore:

Subj ect: Export of 20,000 metric tons of 0.3% depleted uranium to France P.eference: ENEL's application AGN/285 dated Septe=ber 12, 1979 Enclosed please find for processing an application for export of U.S. origf.n source material to France which has been established by INEL.

Should you need nore informition on th'is export please contact Mr. F.

Re:ondino or our offfce.

Thank you for your co:peration.

Sincerely, C '. Marchal Gk J

j JWaj s En:losure : 1 application for export w/ attachment cc: Mr.

F.

Remondino, INEL, New York, w/ enclosure f

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BUREAU OF OCEANS AND INTERNATIONAL

(( j ENVIRONMENTAL AND SCIENTIFIC AREAltBS.r Ei

• 2 T

INTERNATIONAL. M Q I t-PROGRANS d

si 0

FEB 0 71980

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d Mr. James R. Shea Director of International Programs United States Nuclear Regulatory Commission Room 6714 - MNBB Bethesda, Maryland

(

Dear Mr. Shea:

!i F

This letter is in response to Mr. Gossick's letter i:

dated September 24, 1979, requesting Executive Branch

[

views as to whether issuance of an export license in ac-

{

cordance with the application hereinaf ter described. would i

be inimical to the common defense and security of the

- l United States and whether the proposed export meets the f-E applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978 f

(P.L.95-242):

E F

i NRC No. XUO8473 -- Application by the U.S.

Representative Office of ENEL (Ente Nazionale

[

per l'Energia Elettrica) for authorization

};

to export to France 20,000 metric tons of de-i pleted uranium in the form of uranium hexa-

[

fluoride to be used as feed material for en-i richment at EUROpIF.

The uranium at natural

{

1evel of enrichment produced from tne export

{

will be used as feed material for subsequent E

enrichment to provide fuel for various re-actors in the European Community.

E The proposed export of depleted uranium h<3xafluoride I

would take place pursuant to the Additional Agreement for I

Cooperation Between the United States and the European E

Atomic Energy Community (EURATOM) as confirmed in a letter

[

from the Delegation of the Commission of the European Com-i munities, a copy of which is enclosed.

EURATOM has ad-hered to the provisions of its Agreement for Cooperation i

with the United States.

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-22.y(I :=N Export of this depleted uranium for enrichment is Ei[

subject to Section 402(a) of the Nuclear Non-Prolifera-tion Act.

Pending entry into force of a new U.S.-EURATOM

[y4 Agreement for Cooperation, export for enrichment in any

$;)

of the member states of the E.uropean Community may take place pursuant to the present Agreement with the approval 3;

of tne United States.

The procedures for such approval gf are identical to those for subsequent arrangements as set fh l out in Part E of the Executive Branch Procedures published g) in the Federal Register on June 9, 1978.

igj The Department of Energy as the lead agency for

.?

preparation of suosequent arrangements has completed the necessary actions for approval under,Section 402 (a).

7 sn The Executive Branch has reviewed this application h.'

and concluded that the requirements of the Atomic Energy g{

Act, as amended by P.L.95-242, have been met and that the proposed export will not be inimical to the common defense gy[

Yl and security of the United States.

A detailed analysis EE '

for EURATOM was submitted November 22, 1979 for NRC appli-

[?!

cation XUO8427.

There has been no material change in cir-ti '

cumstances since that submission.

Es

?3 With respect to shipments which are scheduled under

$I this license application after March 10, 1980, it is the

[H view of the Executive Branch that license XUO8473 remain EH valid after March 10, 1980 provided that the Executive Branch notifies the NRC that either the President has NP made the necessary determination unde.' section 126a.(2)

GB of the Atomic Energy Act extending the duration of the

$f first proviso of that Section for each 12 month period Di during the term of the license, or EURATOM meets the re-R quirements of S csion 126 of the Act.

This proviso should 33 be made a condicio. of the license.

EM I

Wi l

On the bas of the foregoing, the Executive Branch

[N recommends that t.se license be issued.

jy n;,

Sincerely,

[.{

e.:

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Ub

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l ouis V. N senzo Ydi l

Deputy Assista t Secretary

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Enclosure:

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Assurance letter ff 59 Y

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DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES EURATOM SUPPLY AGENCY November 20, 1979 Mr. Vance H. Hudgins Director Division of Politico-Military Security Affairs Office of International Security Affairs Department of Energy Washington, D.C.

20585

Subject:

ENEL application AGN/285 dated September 12, 1979 for France - XUo8473 We certify that the material mentioned in this application, l

namely 20,000 metric tons of depleted uranium (with average.3%

in the form of UF ), and the transfer of this l

assay of U235 6

l material will be subject to all. terms and conditions of the Additional Agreement for Cooperation, dated July 25, 1960, as amended.

Further, we certify that Eurodif, Tricastin, France as ultimate consignee, is. authorized by EURATOM to reccive and possess this material pursuant to the aforementioned Agreement t

l for Cooperation.

The material will be used as feed for enrichment up to natural uranium assay which will subsequently be used as feed materi'al for the fueling of reactors in - the European Communities.

l Sincerely,

'. Y! h l

M. Gop'p ajs

/

\\

cc:tMr. Robin De LaBarre, State Department i

Mr.

R. Neal Moore, NRC Mr. Franco Remondino, ENEL, New York 2100 M SWest NW Sune 707 Westunpon DC 200371 tosphone: (202) 882-9500 t teoc Wasnrqan WU 88539 (EURCOM WSm

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APPENDIX C

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._W.. d yederal Register / Vcl. 44. No.193 / Wedmsdsy. Oct:ber 3.19 9 / N:tices 56979 3

"~

ted. dats rif.

Departm:nt of th3 Navy m;tric tons cf daheted uranium (.3'1 U- \\

2.rI 4.1 NaMI alting active duty, 235) from DOE stockpiles for enrichment Academic Advisory Board to the i in France and for subsequent use in the ig

+.

g Superintendent, U.S. Naval Academy, a European Commmdty civil nuclear T

4J,rT:sf8d to United States Subcommittee of the Secretary of the power program. Material to be delivered

.. W p@Paponnel Center. 200 n co dria.VA =332.

Navy's Advison Board on Education in FY 80. 82 and a2.

,;,ks. m,,,,%;,.

, f3 and Training; Meeting

- ~ -

In accordance with Section 131 of thd

. Ud

1. theindsidual should acceptable Pursuant to the provisions of the Atomic Energy A*:t of1954, as amended.

Federal Addsory Committee Act(5 it has been determined that the.

SS.V,"W 08".h., ve verbal-be verified with' U.S.C. App. f). notics 14 hereby given.

'""*". of the nuclear material will 8

ifying that the Academic Advisory Board to not be inimical to the common defense the Superintendent United States Naval and security.

T

.t ' -

~~ "

%Is subsequen'. arrangement.will 7~

'som pnoceovmas:

Academy, a subcommittee of the take effect no sooner than fifteen days "IC**. 3:$,:, 1 s:

Secretaryof theNav/s AdvisoryBoard Tr

• Bes fa co g.

,d sof%

o.2 Education an.1 Training. will meet on i after the date of publicatinn of this

.y

• P'rso:::::eg ~~-

adappealms M November 9.19"9 at conference room notice (October 1s.1979).

!?2is

-msy be obtained from 301. Rickover Hall. United States Naval For the Department of Enargy.

Academy. Annapolis, Maryland.The '

Dated: September za.isrs.

~

00

g3g, t fa,' Artrg meeting will commence at a.30 a.m. and-Harold D. _;' '- '

.rator ""6 887'**"'s:

terminate at 3:00 p.m..

pjfectorforMmelear Affhi.rs. laternadonal

^

rutico.%

is obtained in document De Purpose,of the meeting is to NuclearandTechnicain,.

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readable form from other g

yal A den y co e

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- I I"

• • *" "I

,n m ',:w

.rcommands, other Federal educadon of midsh'smen. To C he

~iii! departments, and accomplish this objetive, the Board'will

~

a ters review academ:1c policies and practices y,y,,,, peg,,, Q tre re

.cc,,,

of the Naval Academy and will submit

,y,,

their proposals to the Superintendent to Coordinating Subcommittee, the

tivo s,

3..

'I and aref.4

- ~ ~.. -

aid him in improving educational Refinery capability Task Group, and r a periodd S-stan ards andin s 1 ng Academy the Oil Suppdy, Demand and 1.ogistics 7FC Credmart.

m=**** "8 =1 Problems.

Task Group of the Committee on Sdec:fonh C 8"**"

For furtherinformation concerning Refinery Flexibility; Meetings italy 400dagi this meeting antact Malor Donald W.

Notice is hereby given that the proximaney Nelson. USAF. M111tury Secretary to the Coordinating Subcommittee of the orfc mes Sr,

p g,9,,

i Academic Addsory Board. Division of National Petroleum Council's Committee

,t fortheW English and History United States on Refinery Flexibility willmeet on

[fnis are y,

, on Septersber 27,1979 Naval Academy. Annapolis,MD 21102.

• Monday. October 22. Is79 starting at 10

)

f 10"W the Environmental Protectior Telephone number (301):57-2170..

a.m. Meetings are also scheduled for ths 1

Q#

9 aIhrt EnvironmentalImpact rated: September::7.tsrs..

Refinery Capability Task Group and the

.,. t(LTIS) concermng the on-P. S. Walker.

Oil Supply. Damand and Logistics Task

'angatssiors at Fort McPherson.

captain,fAcc as geryo,putyAssistent.

Group on October to and October n, tss:

% Asyin.Tbt, alternatives of A dge Adrecere cenerc/(Adminiscr:tive 1979, mWaly. Allsessions will be 3 Ar:ny '

• ev.ntag, discontinuing or changing

1. awl held in the Conference Room of tlie l0 St:vaA :.. Tassies at Fort McPherson are tra o.r.russer rs.e tw->= ms :' '

National Petroleum Council. Suite 601, 1Ejuni. Copies of the statement have eu.a.mo coot mwi-u 8

.. ~ Y bimrarded to concerned Federal.

1625 K Street.NW Washington D.C.

The National Petroleum Council J 0 --

^ Wlocal agencies. Interested j

provides technical advice and ed froce.-

Onzatioos orindividuals may obtain DEPARTMENT OF ENERGY information to the Secretary of EnerTT

?"8 864 Mais for the cost of reproduction from on matters relating to oil and gas or the

'i M'-*ste Facilities Engineering.

Office of Assistant Secretary for oil and gas industries. According!y. the-

+A I'Emmental Of5ce. Fort McPherson.

Intemational Affairs Committee an Refinery Flexibility has 2220. '

been requested by the Secretary to

25-G22L, y.c g Washington area. copies may Proposed Subsequent Arrangement; undertake an analysis of h factors Peaceful Uses of Atomic Energy affectmg crude oil quality and

_ ' { 'anduring normal duty hours. m the Pursuant to Section 131 of the Atomic availability and the ability of the tal OfHee. OfBea of

.{

Energy Act of1954, as amended (42. J refining industry to process such crudes f _ *%q; Chief of Engineers. Room U.S.C. 2160). nntice is hereby given of a into marketable products.This analysis -

g..

Pentagon. Washington, DC:0310-

• • ds proposed " subsequent arrangement

• will be based on information and'dati to

, '. "9 anne:(:02) es4-3434.. ;.2 under the Additional Agreement,

[:

. i A.HDdelmand.

~J1

' Between the Government of the United.

~ be gathered by the Oil Supply, Demand. -

and Logistics Task Group and the -

WafArE.;

,ct.Safetyand ~ -

States of America and the Eurcpean.

Reanery CapabilityTask Group,wbse L

6%IHealth. CASA (HMM).

Atomic Cc=m:nity(EURATOM) eiforts will be coor 'nated by the 73.,,. -

'.auam ames sr,w Energy.

• tentative agenda of the Task Group-

%.amwes.4 % inens

,ss.

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Conce ning the Peaceful Uses of Atomic.

Coordinating Subcommittee.The

.,gery gl.i l The subsequent arrangement to be session is as follows:

carried out under the above menti med.

The meeting for the Coordinating agnog,' ',? ;:-

agreement involves the sale of:0.000 Subcommittee will be held on October

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DEPARTMENT OF* STATE 3 p1 :)6

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BUREAU OF OCEANS AND INTERNATIO g

ENVIRONMENTAL AND SCIENTIFIC ApY

. ggs FEB 2 2 1980 MM c...'

p m 33 7 Mr. James R.

Shea Director of International Programs

=

United States Nuclear Regulatory Commission

=.

Room 6714 - MNBB Bethesda, Maryland

Dear Mr. Shea:

In reference to my letter of February 7, 1980,

==

==

concerning proposed license XUO8473, I am pleased to advise the Commission that, in accordance with S402(a)

==

of the Nuclear Non-Proliferation Act and the applicable procedures, enrichment after export of the material proposed to be exported under XUO8473 has been approved by the United' States.

In view of the fact that approval has already been granted, obviously no further commit-

=

ment is required to ensure that this approval will-be

==

obtained.

Sincerely,

/

1 m. //

=

ouis V. N senzo FE=

Deputy Assistan secretary

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