ML19310F805

Reviews Proposed Issuance of Export Licenses XSNM-1667, XSNM-1778,XSNM-1779 & XSNM-1780 to Transnuclear,Inc & Nissho-Iwai American Corp

ML19310F805
Person / Time
Issue date:	05/07/1981
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
TASK-PINV, TASK-SE SECY-81-295, NUDOCS 8105210510
Download: ML19310F805 (7)

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SEC1-111-295 May 7,1981

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For:

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From:

William J. Dircks Executive Director for Operations W[,

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Subject:

APPROVAL OF PROPOSED LICENSES TO EXPORT HIGH ENRICHED URANIUM TO JAPAN (LICENSE NOS. XSNM01667, XSNM01778, XSNM01779, AND XSNM01780)

Comission review of proposed issuance of subject licenses

Purpose:

to Transnuclear, Incorporated and Nissho-Iwai American Corporation Review Dates:

60-day period expires on May 26, 1981 120-day period expires on July 25, 1981 Discussion:

On March 25, 1980, Transnuclear, Inc.

submitted an app 1tca-tion for a license to export high enriched uranium for use in the JMTR and JRR-2 reactors in Japan. On December 30, 1930 Nissho-Iwai American Corporation also applied for three licenses to export high enriched uranium to Japan for use in the same reactors, plus the JRR-4. The material requested in each application is as follows:

1.

XSNM01667: Transnuclear application for 40.480 kilograms of uranium enriched to 93.3%. containing 37.768 kilograms of U-235. This material, in the form of uranir metal, will be shipped to Nuclear Fuel Industries, Ltd. in Japan for fabrication of fuel elements. The material will be distributed in the following quantitles: 33.301 kilograms of uranium for the JMTR and 7.179 kilograms of uranium to the JRR-2.

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Contact:

Jenice Dunn Lee, IP 49-27984 hb0

The Comissioners 2

Discussion:

2.

XSNM01778: Nissho-Iwai application for 21.473 kilograms (Continued) of uranium enriched to 45.40%, containing 9.749 kilograms of U-235. The material, in the form of uranium metal, will be shipped to NUKEM in the FRG for fabrication of fuel eTements for use in the JMTR.

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XSNM01779: Nissho-Iwai application for 14.712 kilograms of uranium enriched to 45.40% containing 6.679 kilograms of U-235. The materi:1, in the form of uranium metal, will be shipped to CERCA in France for fabrication of fuel elements for use in the JRR-2, 4.

XSNM01780: Nissho-Iwai application for 31.884 kilograms of uranium enriched to 19.95%, containing 6.361 kilograms of U-235. The materia ~l, in the fom of uranium metal, will be shipped to CERCA in France for fabrication of fuel elements for usr2 in the JRR-4.

The 50 megawatt thermal JMTR, which began operation in 1968, i

is Japan's principal reactor for testing materials in a high neutron flux. The JRR-2, which began full operation in 1962, is a 10 megawr.tt thermal reactor used for neutron physics, materials irradiation, and isotope proi. tion. The JRR-4, a one megaw tt thermr1 pool type reactor which began operation in 1965, is used fur rector physics and shielding experiments.

All three reactors are or led and operated by the Japan Atomic Energy Research Institute (JAERI).

In response to our requests for views, the Executive Branch has:(1) concluded that the requirements of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978, have been met and that issuance of the proposed licenses 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-Japan Agreement for Cooperation and, during the time it is in EURATOM, the US-EURATOM Additional Agreement for Cooperation; (3) noted that Japan and the members of EURATOM have adhered to the provisions of their agreements for cooperation; and (4) advised that there were no material changed circumstances since submission of its detailed analyses of April 30,1979 on a proposed export to Japan (see XSNM01435, SECY-79-14C) and of December 8,1978 on proposed exports to EURATOM (see XSNM01212, i

SECY-78-639A; XSNM01232, SECY-78-640A; XSNM01238, SECY-78-641A; j

and XSNM01241, SECY-78-654A).

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The Conraisstners 3

Discussion:

Among other things, the Executive Branch letter of (Continued)

March 25 on application XSNM01667 notes that:

As of early 1980, the inventory of unirradiated fuel on hand for the JMTR, which includes fabricated fuel on site and fuel in process of fabrication, totalled 103.9 kilograms of U-235. Since the annual fuel requ'rement for the JMTR is approximately 34.5 kilograms of '.;-235, the inventory amount would be enough to supply the reactor unti early 1983.

The additional 93.3% material requested in application XSNM01667 would be sufficient to permit operation of the JMTR until early 1984.

The annual fuel requirement for the JRR-2 is approximately 8.9 kilograms of U-235. As of early 1980, the JRR-2 had a total of 28.1 kilograms of U-235 in unirradiated fuel element form and in the fabrication process. This amount would allow operation of the JRR-2 until early 1983. The additional material requested in application XSNM01667 for the JRR-2 would allow normal operation through late 1983.

The average time required for enriebnent, shipment, conversion, and fabrication is approximately 24 months. Therefore, both the operators and fuel fabricators would appreciate early action on the material requestee Although the Executive Branch did not specifically address the end uses of applications XSNM01778, XSNM01779, and XSNM01780, the staff notes that the medium and low enriched materials requested will be used for full-core demonstration testing in the JAERI reactors as part of the Reduced Enrichment Research and Test Reactor (RERTR) program. The materials are being requested at this time to allow enough lead time for shipment and fabrication in EURATOM.

The reduced-enriched fuel elements are scheduled for loading in late 1983 and early 1984.

The Executive Branch analysis of XSNM01667 states that Argonne National Laboratory (ANL) completed a technical and economic evaluation of the JMTR and the JRR-2 in 1979 and concluded that they are candidates for use of 45 percent enriched fuel in the near term and possibly for use of 20 percent enriched fuel at a later time. Test irradiation of prototype 45 percent enriched fuel elements is scheduled for 1982, and if successful, conversion of both reactors to use of 45 percent fuel may be possible by early i

1984.

In order to facilitate our review of whether it would be possible to currently operate the JMTR, JRR-2, and JRR-4 reactors on uranium of lower enrichment, the staff requested that the Executive Branch provide us a copy of the Argonne analysis which discusses in detail the technical and economic justification for the continued interim export of 93.3% enriched fuel. The Argonne analysis, dated July 51, I

1979,is enclosed at Appendix C.

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The Comission 4

Discussion:.

According to the analysis (which has not been updated), both (Continued)

ANL and JAERI agree that all the JAERI reactors (which includes the JMTR, JRR-2, and JRR-4) can be converted to 45% enrichment fuel when this high density fuel is demonstrated and available.

In order to implement enrichment reduction from 93% to 45%

in these reactors, JAERI initiated in 1979.a five year program invoi <ing engineering feasibility and fabricability studies

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for powder metallurgy fuels, burnup experiments in Japanese reactors, reactor core design studies, and safety analysis studies. Preliminary specifications for fuels with high uranium de mity and 45% enrichment have been developed, and tests are planned for each reactor full-core d e --tra' r

beginning in n.,

'^"3.

Furthermore, a complete schedule was developed by o,,iRI specifying the quantities of HEU (93%) that are required as interim supplies to assure con-tinuity of operation of both reactors until the full-core demonstration tests with 45% enriched fuels begin.

Enrichment reduction to 20% fuel requires use of very high uranium density fuels that are currently under development in the US and Europe. Both ANL and JAERI agree that the use of fuel with 20% enriched uranium and 40 wt. % uranium content is not a practical citernative for the JMTR or the JRR-2 without significant.

. ties in reactor performance and fuel cycle costs. However, practical alternatives far utilization of 20% enriched uranium may be feasible with fuels of higher uranium densities. A calcula tional feasibility study on the potential use of 20% enriched fu ils in the JAERI reactors is being planned. This study would include evaluation of all practical options for redesign of the fuel elements, using thicker fuel meats in each reactor with fuel types and uranium densities that are expected to be commercially azailable in the next several years if the US RERTR Program is sw assful.

Meanwhile, since fuel with high uranium density and reduced enrichment is not currently available, Argonne has concluded that the JAERI reactors may continue to be supplied with 93.3% enriched fuel until suitable fuel with reduced enrich-ment has been demonstrated and is available on a commercial basis. The staff has concluded that the Argonne analysis appears reasonable and provides an adequate basis for concluding that this interim shipment of HEU is justified.

The staff notes that for those portions of material going to EURATOM for f0brication, the Preside.nt has issued Executive Order 12295 dated February 24, 1981, extending the exemption of EURATOM from certch requirements of Section 127 of the Atomic Energy Act, as amended, for a period of twelve months through March 10,198'..

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The Comission 5

International The NUKEM facility in the FRG, which will perform some of the safeguards and conversion and fabrication work on the HEU fuel elements, is Foreign covered by IAEA safeguards pursuant to its IAEA/ EURATOM Agree-Physical ment which entered into force on 21 February 1977. A facility Protection attachment has been in force for the,NUKEM facility since Review:

1 February 1979. A detailed analysis of 1AEA safeguards at NUKEM was transmitted to the Comission as SECY-80-207, and was also discussed in connection with another approved export of HEU to the FRG ( n SECY-80-430A, classified).

France has signed a safeguards agreement with the IAEA, under its voluntary offer, but it is unlikely that it will be put into force and implemented in the near future.

Staff has no information on whether CERCP, which Will do some of the fabrication work, will be listed as one of the eligible facilities for application of IAEA safegueds under this agreement.

Very little information on the application of IAEA safeguards at French facilities is currently available and no information is available concerning the specific safeguards requirements imposed at CERCA by EURATOM.

EURATOM does have a resident inspector at CERCA..

Staff has very little information on the application of IAEA safeguards at the NFI hirh enriched uranium fabrication tacility r

in Japan other than infomal information that indicates that the facility has been inspected regularly by the IAEA. The NFI facility is covered by an IAEA facility attachment.

Japan has an extensive national system of accounting and control, including inspection, to support the IAEA safeguards program.

The JMTR, JRR-2 and JRR-4 researcn reactors in Japan have facility attachments in effect and are subject to IAEA safeguards.

Although no information is available on the effectiveness of IAEA safeguam. implementation at these facilities, the staff believes that accounting for and control of fuel elements at these reactors would be within the capability of the IAEA and Japan.

Both the FRG and Japan, as parties to the Nonproliferation Treaty (NPT), have undertaken obligations to accept IAEA safeguards on all source and special nuclear material in all their peaceful nuclear activities.

As a nuclear weapon state, France is not subject to full scope safeguards requirements.

Staff has reviewed the physical security programs in France, the

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FRG and Japan and found them in accordance with 5110.43 for the purpose of these exports.

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i-The Commission 6

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Conclusion:==

The staff believes that there are no material changed l

circumstances concerning exports to Japan and EURATOM which would affect the Commission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g., XSNM01408, SECY-80-318; XSNM01340, SECY-80-316; XSNM01435, SECY-79-14C; XSNM01232, SECY-78-640A; and XSNM01241, SECY-78-654A) for material to Japan and EURATOM after Consis-4 sion review. Accordingly, the staff believes that the proposed licenses should be issued. This procedure is authorized by 1110.44(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.

Recommendation:

That the Connission authorize the issuante of the proposed i

licenses to Transnuclear, Incorporated and Nissho-Iwai American Corporation.

Q William J. Dircks Executiva Director for Operations Appendices:

Appendix A: Applications XSNM01667, dtd 3/25/80, XSNM01778,

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XSNM01779, and XSNM01780 dtd 12/30/80 Appendix B:

Executive Branch ltrs dtd 3/25/81 and 3/26/81 Appendix C: Argonne Analysis dtd 7/31/79 6

Commissioners' connents should be provided directly to the Office of the Secretary by c.o.b. Friday, May 15, 1981.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT May 13,1981, 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 Cornissioners and the Secretariat sheuld be apprised of when comments may be expected.

. DISTRIBUTION Commissioners Commission Staff 0ffices Exec Dir for Operations Secretariat 1

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FORM NHC.7 3

U.. Nut: LEA *1ilEIULATORY COMMISSION APPCDVEC BY GAC (7 73 0180225GO362)

1) CFa t o APPLICATION FOR LICENSE TO EXPORT NUCLEAR MATERIAL AND EQUIPMENT (seeinstruerions on Reiersel 1

A. APPUCANT*S REFERENCE 2.NRC l a. UCENSE too.

b. DOCKET NO.

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1. APPUCANT'S l DATE OF APPUCATID l MISC-32280-074/01 t

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j uSE 3/25/80 uSE

3. APPUCANT'S NAME AND ADDRESS l RIS.

4. SUPPUER'S NAME'AND ADDRESS lRIS (Comoear if nootocent as not amoker of rnaterret]

Trev-lear, Ir-w ~ -ted U.S.D.O.E.

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s. NAMll Unicn Cabide Co d.

i 5205 Th'm Pike, Che Skyline P:2ce

s. CITY STATE ZIP CDDE

b. STREET ADDRESS

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m. TELEPeeQNE NuwsER 4Arme Cose-tisummer-Essensen/

c. CITY STATE ZIP CDDE 703-820-2450 Oak Ridoe

'IN 37830

5. F4RST SHIPMENT

4. F NAL SHIPMENT 7. APPLICANT *S CONTRACTUAL 8. PROPOSED LICENSE

9. U.S. DEPARTMENT OF ENERGY j

SCHEDULED SCHEDULED DELIVERY DATE EXPtRATION DATE CONTRACT NO. fif Krewn/

i A.F.C. contract to

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r-U - *, 1981 May, 1982 June 30, 1982 Neverber. 30,1983 -be detemined io. ULTIMATE CONS GNEE Lnas

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11. ULTIMATE END USE l

. tinctuon piant or!acisity name>

,Japem Atcnic Ener=y Researc.h Institute 33.301 Eg U for the fuel of Japan Mate:ial

'htsting Beactor (2".rR) in Oarai Researth urREET ADDRESS 2-2 Uchisaiwai-cho 2-Chame, Chiyoda Establishment. 7.179 Kg U for the fuel of i

c. CITY - STATE - COUNTRY UaDa0 Reseach Beacto.No. 2 (JER-2) in I

,W7,gga;c},[p3gpl3.s=ent January 1,1983 okyo, Japan m

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22. INTERMEDIATE CONSIGNEE 1 nas

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o.NAME Nuclear Fuel Industries, Ltd.

Fa ication of enriched uranium retal into fuel ele."entS

n. 4TREET ADDRESS 23-5 Nishishinhashi 3-Cham, Minato

c. CITT'- ST ATE - CDUNTRY W, Jacan ts. EsT. DATE or s Rst usE July 4,1982

12. INTERMEDIATE CONSIGNEE l fles

• 1 15. INTERMEDIATE END USE l

'L.s"Ex>-Iwai Ccr:pany, Ltd.

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• te for transport purposes only

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"*'tietyo Head n"%, 4-5 Akasaka, 2 Chcrae *

c. CITY - STATE - COUNTRY J.to *, M fo 107 Jaman is EsT.DATE OF FiRsT uSE 16.

17. DESCRIPTION

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

l NRC (trackoe chemiest one physucer form of nucieer meterat;give cottar veoue of WElGHT WT. %

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UNli USE nuenmereaur

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N. A.Uranium in the fc= cf uranium retal enriched to 40.480 93.30 37.768 kg b

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23. COUNTRY OF ORIGINFSNM '

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22. COUNTRY OF ORIGIN.-

l SOURCE MATERIAL WHERE ENRICHED OR PRODUCED SAFEGUARDS (11Known/

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25. ADDITIONAL INFCRMATION /use sepe are sheetiinacessary/

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26. The appliumnt sortifies that thes appliasten as prepared in conferrnsty with Title 10. Coos of Feoeral Raoutstions, and that oli information en thes apoiaastoon a entractis the hast of his/her knowissen.

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