ML19350D713

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Informs Commission of Executive Branch Response Re Union Carbide Corp Application for License to Export Highly Enriched U to France
ML19350D713
Person / Time
Issue date: 04/30/1981
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
TASK-PII, TASK-SE SECY-81-275, NUDOCS 8105180441
Download: ML19350D713 (1)


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April 30,1981

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For:

The Comissioners

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William J. Dircks

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Subject:

EXECUTIVE BRANCH RESPONSE ON PENDING EXPORT APPLICATION FOR HEU TO FRANCE, XSNM01787

Purpose:

To infonn the Comission of the above subject.

Discussion:

Enclosed for the information of the Comission are copies of the Executive Branch response on a pending export license application. Also enclosed are copies of the original application.

Copies of the Executive Branch comments have been placed in the Public Document Room.

A Comission Action Paper will be forwarded soon.

Comissioners are requested to advise the staff of any particular issues or information which they can identify at this stage and which they wish included in the staff's

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~W William J. Dircks Executive Director for Operations

Enclosures:

As stated DISTRIBUTION:

Commissioners CONTACT: BLWright, IPEI Commission Staff Offices (492-7984)

EDO 81051801/$

, DEPARTMENT OF CTATE RECEIVED L,L.>

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31 APR 24 P1 :29 BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFM OF

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APR 2 31981

)7$7 Mr. James R. Shea Director of International Programs kM

}IDO 4877 United States Nuclear Regulatery Commission Room 6714 - MNBB Bethesda, Maryland gh.

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Dear Mr. Shea:

This letter is in response to the letter from your office dated February

?6,1981, requesting Executive Branch views as to whether issuance of an export license in accordance with the application hereinafter 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, as amended by the Nuclear Non-Proliferation Act of 1978:

NRC No. XSNM01787 - Application by Union Carbide Corporation for authorization to export to France 10.06 kilograms of U-235 contained in 10.8 kilograms of uranium in the form of uranium metal enriched to a maximum of 93.15 percent.

This highly-enriched uranium is to be used in the fabrication of fuel elements by CERCA, Romans, France, for the Union Carbide Sterling Forest Reseach Reactor in the United States.

De proposed export to France for fabrication of fuel elements would take place pursuant 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, a copy of which is enclosed. EURATOM has adhered to the provisions of its Agreement for Cooperation with the United States.

De Executive Branch has reviewed the application and concluded that the requirements of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 1978, have been met and that the proposed export will not

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be inimical to the common defense and security of the United States. A detailed analysis for EURATOM was submitted December 8,1978 for NRC application Nos. XSNM01212, -01232, -01238 and -01241. In view of Executive Order 12295, extending the duration of the period specified in the first proviso to Section 126a(2) of the Atomic Energy Act of 1954, as amended, to March 10, 1982, that detailed analysis remains valid.

There has been no other material change in circumstances since that submission.

i De Union Carbide Research Reactor is a 5 MW research and test facility located at Sterling Forest, New York and owned and operated by the Union Carbide Company.

It is used for solid state physics, radiochemical g[

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. analysis and effects, materials irradiation and medical radioisotope production.

It is currently the sole commercial production source in the United States of many radiopharmaceuticals.

There is at this time no commercial manufacturer in the U.S. of the HEU fuel elements used by this reactor.

'Ihe Argonne National Laboratory has examined the possibility of conversion of this reactor to use of lower enriched fuel and concluded that it could be converted to use of 45 percent enriched fuel in the near term and to use of 20 percent enriched fuel in the longer term without redesign or substantial loss of performance.

When silicide fuels become available, conversion to 20 percent fuel could be accomplished with little performance loss. Union Carbide would prefer this approach.

According to Union Carbide, a total of 11.22 kilograms of U-235 in irradiated HEU was on hand either at Sterling Forest, USA, or in fabrication at CERCA as of February 1981.

'Ihe annual reactor fuel requirement is approximately 5.4 kilograms of U-235. 'Ihe elements on hand or in process of fabrication at CERCA will permit operation until early 1983.

The current request of 10.06 kilograms U-235 should allow for operation of the reactor untillate October 1984, when suitable lower-enriched fuels may be available for use.

On the basis of the foregoing, the Executive Branch recommends that the license be issued.

Sincerely, 7

Louis V. N senzoj Deputy Assista{t Secretary

Enclosure:

Assurance letter r

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DELEGATION OF THE COMMISSION OF THE EUROPEAN COMMUNITIES March 25, 1981 JM/aks Mr. John A. Griffin Director, Division of Politico-Military Security Affairs Officeof International Security Affairs Department of Energy Washington, D.

C.

20585

Dear Mr. Griffin:

Subject:

Union Carbide Corporation's application no. 281, dated February 9, 1981 for France -XSNM 0 1787 We certify that the material mentioned in this application, namely 10.8 kg of U enriched to approximately 93.15% in U-235'and the transfer of this material will be subject to all terms and conditions of the Additional Agree-ment for Cooperation, dated July 25, 1960, as amended.

Further, we certify that CERCA, Paris, France, as ultimate consignee, is authorized by EURATOM to receive and possess this material pursuant to the afore-mentioned Agreement for Cooperation.

The material will be used to fabricate 55 fuel elements, and returned to Union Carbide, USA.

Sincerely, kd J. Marchal Secretary Nuclear Supply cc:#Mr. Robin De LaBarre, Department of State Ms. Betty Wright, Nuclear Regulatory Commission i

Mr. C. G.

Balalis, Union Carbide Corporation i

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s. (as CU AN TlTY TO BE SM1PPEO (b) CouMool?Y DESCRIPTION (laclude chemscal armi phyrscal for%- for special nuclee material and (See snstructsons on back) byprodset matersal also specsfy isonopse content; si sn a devnce, sdentify the devsce, manufactnrer.

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WILL PACKAGE IN ACCORDANCE WITH FEDERAL REGULATIONS BY OAKRIDGE NATIONAL MI LABORATORY 15J s!!

9. ENC USE or CowMoO1 TIES CovtRED BY TN15 aPPLIC ATICN. (Desenbe fully, statsna uhat util be prods.ced or rna.a./acissed, uhat seersce

.Q util be rendered, or the nature of the reseech that util be perfomed.) (See unstructions on back for speciat nuclee matersat.)

Jij To fabricate fifty five (55) conventional Union Carbide nuclear reactor fuel elements

=E9 and return to Union Carbide Corporation, Tuxedo, NY.

Please refer to the following export licenses issued to Union Carbide previously: XSNM01354 and XSNM01535

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[M Mih to The applicant, and any officiabezecuting this certificate on behalf of the applicant named in item 4, certify that this application is prepared in conformity wicGTitle 10. Code of Federal Regulations. Parts 30 and 36 (if for byprodu,ct material) or Part 40 (il for source materiat), at Part 70 (if for special nuclear material), and Part 71 (for transport of radioaccave material, if applicable) and that all informatin contained herein, including any supplements attached hereto, as true and correct to the best of their

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February 10, 19R1

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> Orc,;3 Mr. R. N. Moore Office of International Programs Nuclear Regulatory Commission Maryland National Bank Building Room 8211 Washington, D.C.

20555

SUBJECT:

SHIPMENT OF FULLY ENRICHED URANIUM 235 TO FRANCE

Dear Mr. Moore:

Enclosed is a completed application, Fonn AEC-7 in triplicate, submitted on behalf of Union Carbide Subsidiary B, requesting authorization to export to C.E.R.C. A.,

41 Avenue Montaigne, 75008 Paris, France 10.8 Kgs, of Fully Enriched (93.15%)

Uranium 235.

The uranium is to be fabricated by C.E.R.C.A. into fifty-five (55) conventional Union Carbide Nuclear Reactor fuel elements and returned to the United States. There will be a small loss during this fabrication.

Applications submitted in the past for similar transactions have been approved and all conditions set forth therein fully observed by Union Carbide Corporation.

The latest license to be granted to us is Number XSNM 01354 and XSNM 01595.

The Union Carbide Nuclear Reactor is this country's sole commercial supplier of a broad range of radiopharmaceuticals.

We believe it to be in the national interest to maintain a sufficient inventory of reactor fuel to assure the continued and timely supply of these materials for the medical ccmunity.

An unprecedented series of regulatory delays has extended our current fuel procurement process to 17 months; 12 months to export material to the foreign fabricator (since there is not a domestic commercial fabricator of the required type of fuel), and 5 months to fabricate the material into reactor fuel elements.

We request that the export license be issued no later than August 1981 so that we can in turn assure the nation of a reliable upply of medical products.

b reactor fuel inventory policy is to maintain a one year supply of fuel.

This inentory is necessary because of the uncertainties in the fuel cycle and the ever increasing regulatory delays.

Problems of fuel manufacturers pulling out of the business, strikes at fuel plants, transportation delays, and new U.S. and foreign regulations are the uncertainties we could encounter.

These delays are acceptable for a period of time if we maintain an adequate fuel inventory.

Tne circumstance of running out of fuel would stop our reactor operations and would cause a serious and possibly catastrophic business situation.

Our country's sole supplier of radiochemicals would be suspen ed. Our continued part in the country's radiochemical 9

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g February 10, 1981

'Mr. R. N. Moore

,g, market would be jeopardized as present domestic customers look to foreign concerns for their radiochemical needs.

In early 1981 we will be receiving fuel manufactured in France.

This will keep our fuel inventory above the one year inventory level until June of 1982.

Our schedule therefore calls for the issuance of an export license no later than August of 1981 to allow for uranium shipment to France, element fabrication, and finished elements returning to us by June of 1982.

We recognize the U.S. Government's desire to reduce the world-wide distribution and use of highly enriched uranium. We are keeping informed of the Department of Energy sponsored RERTR (Reduced Enrichment Research and Test Reactor) program beina cer%rmed at the Argonne National Laboratory.

UCNR's Manager of Nuclear Operations attended the International Meeting on Development, Fabrication, and Application of Reduced Enrichment Fuels for Research and Test Reaction at Argonne in November of 1980.

By attending meetings such as these we keep infomed on present low enrichment technology.

The vast majority of all attendees at the Argonne meeting were R&D or fuel manufacturing personnel with the number of users or operators of reactors being very small.

The principal objectives of the RERTR program are to provide the technical means by which the uranium enrichment in research reactors can be reduced to less :han 20%

without significant financial or performance penalties.

The program's technical basis to achieve their goal is to increase the uranium loading of each fuel element while the uranium enrichment is reduced.

To do this the uranium density in the fuel meat or the volume fraction of the fuel meat will be increased.

UCNR is presently considering extending fuel element lifetime by increasing the loading of highly enriched uranium per a'ement by utilizing burnable poisons.

This technology is already demonstrated and,-hievable.

The burnable poisons would decrease the fuel cycle fabrication costs as less elements would be required because of their longer lives.

Reduced transportation and reprocessing expenses and greater fuel security would also be expected with the number of required elements decreased.

If RERTR's program of low enrichment is undertaken at UCNR, our option for utilizing burnable poisons would not also be available and the financial advantages of burnable poisons lost.

This would plcce a financial penalty on us as against the objectives of the RERTR program.

The first scheduled demonstration of a reduced enrichment fuel elements funded by the COE/RERTR program will come from prototype fuel elements to be fabricated by French and Geman manufacturers for the Ford Nuclear Reactor at the University of Michigan.

The Ford Reactor running with the new 20% enriched elements expects a reduction of approximately 8% in their peak themal neutron flux levels.

This same reduction in the UCNR flux would be a definite perfomance penalty, also against the original objectives of the RERTR program.

I The Michigan low enriched uranium (LEU) design for our reactor would require greater than 20% enrichment, possibly up to 50%.

This level will remove the options we have o f increasing the licensed power level or lengthening core life.

The LEU technology l

best suited for the UCNR may be silicide or zirconium hydride which will not be 1

Eh.

February 10, 1981 Mr. R. N. Moore

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demonstrated for our size reactor (with LEU) for some time.

The Ford fuel elements are not scheduled to arrive in Michigan until July 1981 or later with a full core test of new elements not seneduled to begin until February 1982.

Allowing a year for in-core irradiation of the fuel and evaluation and presentation of its perfomance, we do not expect a demonstrated low enrichment technology will exist before mid 1982.

As stated above, our present fuel cycle schedule calls for our next batch of newly fabricated fuel elements (built and shipped under this requested export / import license) to arriv.e here in June of 1982.

Based on experience, a demonstrated low enrichment fuel technology must exist at least 17 months in advance of the application for an export license to pemit licensing, fuel management, and commercial arrangement for an alternate fuel design.

This technology is clearly not proven or demonstrated at the present time and will most likely not be available until mid-1982.

Therefore this low enrichment technology will not be available for the new fuel to be manufactured under this requested export /

import license.

Please feel free to call with questions or requests for more information.

Sincerely,

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C. G. Balalis Export Control Coordinator CGB:jc CC: Dr. R. E. Bollinger - UCC, Tuxedo Mr. J. P. Burke - UCC, New York Mr. J. J. Kenney, Jr., - UCC, Washington Mr. J. J. McGovern - UCC, Tuxedo Mr. M. Voth - UCC, Tuxedo Mr. W. G. Ruzicka - UCC, Tuxedo Mr. G. F. Durkin - UCC, New York

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