ML20009A417

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Reviews Proposed Issuance of Licenses XSNM-0844,XSNM-1045 & XSNM-1645 & Amends to Westinghouse & Ge.Recommends Licenses & Amends Be Granted
ML20009A417
Person / Time
Issue date: 06/22/1981
From: Dircks W
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20009A418 List:
References
TASK-PINV, TASK-SE SECY-81-385, SECY-81-395, NUDOCS 8107130045
Download: ML20009A417 (6)


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June 22,1981 SECY-81-385 POLICY ISSUE

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For:

The Commissioners a

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William J. Dircks

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Executive Director for Operations 4/

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Subject:

APPROVAL OF PROPOSED LICENSE AND AMENDMENTS TO EXP0RT LOW ENRICHED URANIUM TO SPAIN (LICENSE NOS. XSNM0844, XSNM01045, AND XSNM01645)

Purpose:

Commission review of proposed issuance of subject license and amendments to Westinghouse Electric Corporation and General Electric Company.

Review Dates:

60-day period expires on July 14, 1981.

120-day period expires on September 12, 1981.

Background:

Westinghouse and General Electric have filed applications to export low-enriched uranium to Spain. A description of each application follows:

1.

XSNM0844, Amendment No. 03 On September 17, 1976, license number XSNM0844 was issued to Westinghouse to ship 146,345 kilograms of uranium, enriched to 3.14% U-235, to Spain for use as the initial core loadings of the Almaraz Nuclear Power Station Units 1 and 2.

License amendment Nos. 01 and 02 were subsequently issued to extend the expiration dates and change the maxi-mum enrichment percentage.

In November 1977, Westinghouse applied for an amendment to increase the quantity authorized for export by 64,610 kilograms of uranium, enriched to 3.2% U-235, which would include two reloads for Almaraz 1 and one reload for Almaraz 2.

In September 1979, Westinghouse requested another amend-ment to increase the quantity of material by an additional 2,774 kilograms, enriched to 3.2% U-235, to cover spare replacement assemblies in case any of the fuel assemblies arrive at the site damaged. By letter dated May 14, 1981, g 7 g 45 810622 Westinghouse requested that the expiration date for XSNM0844 81-385 PDR be extended to December 31, 1984.

CONTACT:

Janice Dunn-Lee, IP (49-27984)

d The Commissioners

2 Background

By memorandum dated May 8,1978, the Executive Branch (Continued) provided a favorable recommendation that the proposed amendment request for an additional 64,610 kilograms of uranium, enriched to 3.2% U-235,be approved. The staff forwarded a paper for review and approval of the proposed amendment on August 1,1978 (see SECY-78-416).

However, upon receipt of additional information on shipping arrangements provided by the applicant at our request, which indicated that the material covered by this amendment could be exported after March 10, 1980, (the deadline date for full-scope safeguards) and still easily meet operating requirements, the staff recom-mended deferral of final Commission action on SECY 416 unDil further notice.

r On May' 14,1981, the Executive Branch provided favorable views with regard to the amendment request for material to cover the spare replacement assemblies (an additional 2,774 kilograms, enriched to 3.20% U-235) and extend the expiration date.

The staff is now prepared to consider the amendment requests for reloads, spares, and extension of expiration date. The total quantity of material covered by this license amendment is an additional 67,384 kilograms of uranium, enriched to 3.20% U-235. The Executive Branch has advised that its views of May 8,1978 are still applicable.

2.

XSNM01045, Amendment No. 03

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On July 21, 1977, license number XSNM01045 was issued to Westinghouse to si.'

15,973 kilograms of uranium, enriched' to 3.72% U-235, for use as reload fuel in the Jose Cabrera Nuclear Power Plant in Zorita, Spain.

License amendments were subsequently issued to authorize additional quantities of material (total 33,823 kilograms of uranium) and extend the expiration date.

On August 16, 1979, Westinghouse applied for an amendment i

to increase the quantity authorized for export by 71,803.56 kilograms of uranium, enriched to 3.72% U-235. The material, which includes four reloads for the Zorita reactor, will be shipped as completed fuel assemblies to the reactor site.

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4 The Commissioners 3

3.

XSNM01645 On January 11, 1980, General Electric Company filed an application for a license to export 95,000 kilograms of uranium, enriched to 3.8% U-235, for use as six reloads in the Santa Maria de Garona (Nuclenor) reactor located in the Province of Burgos, Spain. The material will be shipped in the fonn of fabricated fuel bundles.

Previous material for the Nuclenor reactor was exported under license No. XSNM0271. The Commission most recently approved XSNM0271, Amendment No. 06 on May 22,1981 which authorized an additional 11,500 kilograms of uranium, enriched to 4.0% U-235,to make up a short fall caused by uiscalculation of the amount of material needed for reload 9 of the Nuclenor reactor. The staff has been informed by

'the applicant that they would prefer to ship the first reload under application XSNM01645 together with the material covered by XSNM0271, Amendment No. 06 in order to save on transportation costs.

General Electric is, there-fore, requesting expeditious Commission review.

Discussion:

In response to our requests for views on the proposed exports, the Executive Branch, in letters dated May 11 and 14,1981, attached at Appendix D has: (1) concluded that the requirements l

of the Atomic Energy Act of 1954, as amended by the Nuclear l

Non-Proliferation Act of 1978, have been met and that issuance of the proposed license and amendments would not be inimical to the common defense and security of the United States; (2) confirmed that the materials will be subject to the terms and conditions of the US-Spain. Agreement for Cooperation; (3) noted that Spain has adhered to the provisions of its Agree-ment for Cooperation with the United States; and (4) advised that there were no material changed circumstances, other than the developments relating to the application of IAEA safeguards to all Spanish nuclear facilities, since submission of its detailed analysis of September 19, 1979 on a proposed export to Spain (see XSNM01477, SECY-80-ll4, classified).

In connection with recent Commission review of two previous license amendments to Spain (see SECY-81-313), a concern was raised with respect to the adequacy of the Spanish assurances regarding "research on or development of" any nuclear explosive device.

Resolution of this matter was reached by referring to the generic assurances previously provided by Spain for exports of nuclear components and materials which state that all U.S. supplied material and equipment will not be used for "any nuclear explosive device nor for research for that purpose".

G The Commissioners 4

Discussion:

The Executive Branch advised that all the necessary legal Continued) steps have been taken to bring the IAEA-Spain Safeguards Agreement into force.

Enclosed with the Executive Branch letters are copies of separate assurances provided by the Spanish Embassy indicating that all nuclear activities in Spain are under IAEA safeguards and that in the unlikely event that situation should change, while any shipment under the proposed license and amendments were pending,'.the Government of Spain would consult with the U.S. Government 90 days in advance.

In this connection and in response to Mr. Chilk's memorandum dated June 1,1981, IP requested State to inform the NRC

.promptly _if Spain notifies the Executive Branch that it has unsafeguarded nuclear activities.

In that request dated June 12,1981, attached at Appendix E, the staff also reconciled the divergent numbering systems used by the NRC and the Embassy of Spain because the Spanish assurances provid-ing for 90 days advance notification are tied directly to specific amendments.

International The exported nuclear material and the recipient power reactors Safeguards will be covered by IAEA safeguards pursuant to the US/ Spain /

and Foreign IAEA Safeguards Agreement. The subsidiary arrangements for the Physical three reactors are completed and in force. The Spanish Govern-Protection ment has confirmed that all its nuclear activities are presently Review:

under IAEA safeguards.

Although little information is available on the application of IAEA safeguards in Spain, staff believes that control of and accounting for fuel elements on an item basis are within the j

capabilities of both Spain and the IAEA.

Staff has reviewed the physical security program in Spain and j

found it adequate for the purposes of these exports.

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Conclusion:==

The staff believes that there are no material changed circum-stances concerning exports to Spain which would affect the Commission's consideration of licensing criteria and which have occurred since issuance of export licenses (e.g. XSNM-01045, Amendment No. la and XSNM0271, Amendment No. 06, SECY-81-313) for material to Spain after Commission review.

Accordingly, the staff believes that the proposed Ticense and amendments should be issued. This procedure is authorized by 5110.44(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.

O The Commissioners 5

==

Conclusion:==

In addition, in view of the implementation of full-scope

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(Continued) safeguards in Spain and the recent approval by the Executive Branch and the Commission of LEU fuel exports to Spain, the staff believes that future routine LEU fuel export license applications for Spain could be processed by the staff without referral to the Commission.

If approved by the Commission, this change in procedure would constitute a revision of the Commission's delegations of authority to the staff, as contained in Mr. Chilk's classified July 28, 1980 memorandum to Mr. Dircks.

The following documents are forwarded for Commission review of the subject applications:

(1) documents relating to XSNM0844 (Appendix A);

(2) documents relating to XSNM01045 (Appendix B);

(3) application XSNM01645 (Appendix C); and (4) Executive Branch letters dated May 8,1978, May 11 and May 14, 1981 with separate assurances from the Spanish Embassy (Appendix D).

(5) letter Shea to J. Boright dtd 6/12/81 Recommendation:

That the Commission:

(1) Authorize issuance of the proposed license and amendments to Westinghouse and General Electric; and (2) Authorize the staff to process future routine LEU export license applications for Spain without referral to the Commission.

7 William J. Dircks Executive Director for Operations DISTRIBUTION:

Attachments :

As stated Commissioners Commission Staff Offices Executive Dir for Operations ELD Secretariat I

Commissioners' comments should be provided directly to the Office of the t

Secretary by c.o.b. Tuesday, June 30, 1981.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT June 26, 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 Comissioners and the Secretariat should be apprised of when comments may be expected.

O APPENDIX A 1

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ICS-9177 i

S.S t0 rn o c E W kmch C o. 0 3 a.

Westinghouse Water Reactor Nu:!!ar Internati:nalDivisions Electric Corporation Divisions 3;, 333 Patscurgh Pennsylvania 15233 7 o -

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~ September 7, 1979 Mr. M. Peterson Acting Assistant Director Export / Import and International Safeguards U. S. Nuclear Regulatory Commission Washington, D. C.

20555

Dear Mr. Peterson:

Please a m t nur ame4 ment to license numbers XSNM-865 (FFY), XSNM-866 (FEY),6SNM-844 (ARZ/ASZBand XSNM-861 (LEM/LOM) to increase the total quantities to te shipped to Spain.

The increased quantities for each of the shove licenses will be 89 Kgs.

of U-235 contained in 2774 Kgs. of Uranium.

The reason for the increase is in case any of the fuel assemblies arrive at the site damaged, we can-ship replacement assemblies.

A request for import license will be submitted under separate cover.

Very truly yours, M^"

R. P. Keenan International Customer Services

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