ML20055F061

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Final Response to FOIA Request for Records.App a Records Encl & Available in PDR
ML20055F061
Person / Time
Issue date: 06/19/1990
From: Philips J
NRC OFFICE OF ADMINISTRATION (ADM)
To: Powers D
ANDIN INTERNATIONAL, INC.
References
FOIA-90-252 NUDOCS 9007130241
Download: ML20055F061 (2)


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/j INFORMATION ACT (FOIA) REQUEST w.o r.r.a -. I an.wisiin David M. Powers PAhi 1.- AGENCY ALCORDS Allt A5tD OR NOT LOCAf tD (See ch.caea tio.est I.pacy enwas es6s.ct i. the e.e.m.i hev. been luc.i.e.

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CoWINil This confirms your agreement with Dick Lavins in a telephone conversation on June 18. 1990.

to exclude proprietary records in NRC files.

You were also informed that the University of Missouri. Columbia Research Reactor license application has already been made available in the NRC Public Document Room (PDR). This document has been filed in PDR folder F0!A-89 23 under the name of Aftergood.

Enclosed is a copy of our response to this request.

The fees associated with the processing of your F01A request are as follows:

Clerical Search - 40 minutes = $8.00 l

Reproduction of Records - 60 pages = $12.00 l

Total = $20,00 l

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i' APPEEDIE A DOCUMENTS BEING PLACED IN THE PDR I

I WORSER DATE DESCRIPTION 1.

02/61/98 Letter from Studevik Nuclear to NRC transmitting. license. application for Ainor Instrument Company and Studevie Nuclear as.

sole agents for World Gems USA Ltd.

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,,MM $/,ytt Kurt Sk61d Us Nuclear Regulatory Commission Medical, Academic, and commercial Use Safety Branch Attn Mr Michael Lamastra Mail stop OWrN-6H3 Washington, DC 20555 USA Dear Sir We hereby submit an application for a Liccnse Pursuant to 10CFR32.11 to Distribute Neutron-Irradiated Gems to Persons Exempt from Licensing. As explained in the appli-cation the qems will,be irradiated at the reactor facili-ties at Studsvik Nuclear in Sweden and shipped to Alnor Instrument company, Skokie, Illinois for release to un-licensed persons.

An application for a Possession License in accordance with the provisions of 10CFR110.27(a)(3) is submitted to the Illinois Department of-Nuclear Safety, Springfield, Illinois. The requested possession limit is as given in Item B.1.1 of the application for a Distribution License, a copy of which is enclosed with the application for a Possession License.

A significant portion of the Quality Assurance Program will be carried out at the facilities of Studsvik Nuclear in Sweden. We will, on request, make the equipment and the procedures which are described in the application and which are residing at Studsvik, available for review by NRC.

Sincerely b

.j T61ve Kivikas Rolf Tedestedt Sr Vice President Sr Vice President Studsvik Nuclear Studsvik Instruments Attachments: 1.

License Application (3 copies)

2. Check payable to US Nuclear Regulatory Commission in the amount of License Fee
3. Copy of Application for Possession License

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to the Illinois Department of Nuclear I

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CONTENT OF APPLICATION A.

Basic Information 1

Applicants f

Alnor Instrument Company and Studsvik Nuclear as sole agents for World Gems USA Ltd.

i Alnor Instrument Company is part of a Division of.

Studsvik AB, Sweden. The organization of Studsvik AB and its subsidiaries and programs and activities within the Studsvik group of relevance for the Iresent application are des :ribed in Appendix A.

2.

Applica nt's Nailing Address:

Alnor Instrument Company 7555 North Linder Avenue i

Skokie, Illinois 60077 USA and i

Studsvik Nuclear S-611 82 NYK0 PING SWEDEN 3.

Person te be Contacted Regarding This Appl.ication:

Kurt SkB3d, professor

- 3 tel +(46)15521000 Studsvik AB S-611 82 NYK6 PING SWEDEN 4.

Location at which Gems Will be Received and Possessed and From Which Irradiated: Gems Will be Distributed to Persans Excempt From Licensing and at Which Records Pertaining to Possession and Distribution of Irradiated Gems Will be Maintained:

Alnor Instrument Company 7555 North Linder Avenue Skokie, Illinois 60077 USA

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Background Information

1. Description of Material to be Imported:

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a. For the purpose of this license application, only i

gemstones known as topas and with basic chemical formula j

A12Sio4[F,OH)2 and of Sri Lanka origin will be considered.

b. only finished.(cut.and polished) gemstones will be 2

imported and distributed to persons exempt from licensing.

c. Before importation, the gems will have been exposed to i

neutron and gamma irradiation at a reactor, followed by heat treatment for removal of undesirable, color components.

d. The neutron and gamma irradiation'of the gems will be l

performed at the1R2 and R2-0 reactors at Studsvik, Sweden.

The heat treatment will also be performed at'Studsvik. The

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work will in both cases be done by personnel in the Materials Irradiation Group of the Nuclear Fuels Department at Studsvik l

Nuclear.

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e. Imported gems will not be exposed to additional itcadiation or other treatment in the United States. Gems I

which are damaged during shipping and handling will be returned to Studsvik for disposal in accordance with regu-lations under which Studsvik operates. Stones which do not i

have the appropriate color for distribution to.the jewelry t

market will be returned to Studsvik.for further treatment or, in cases where further treatmentiisinot appropriate, for disposal'as described above.

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f. All material to be imported is acquired from a single i

source and is of Sri Lanka origin. The gems will be sorted

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into narrow size groups prior to irradiation and the dose received by each group will be monitored. The identity.of these groups will be maintained through all subsequent steps t

of treatment and handling, including packing and shipping to the location of the licensed importer.

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g. Regulations which govern the mineral irradiations at j

Studsvik stipulate that the personnel involved must not receive a measurable radiation. exposure from this work.-The l

shielded container in which.the gems are irradiated is therefore not opened until approximately 1 month after the l

completion of the irradiation. This~ time limit is not set by

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the activity of the gems but rather by the induced activity i

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in the container material. For this reason only radionuclides which are detectable on the High Resolution Gamma Detector after'l month of decay are identified. Radionuclides are classified as " major" if their relative contribution to the

" Sum of Ratios" as defined in 10CFR30.70 is more than 1 percent after 3 month of decay and as " minor" otherwise. For reasons described below, smaller gems (the smallest. gems which we will handle are 30 mg), which have the highest activity levels and therefore are used as reference in the QA procedure, will remain'at Studsvik for a minimum of 3 month after the end of irradiation. Radionuclides which are classi-ficd as " major" are listed in Table 1 and radionuclides which are classified as " minor" are listed in Tabic 2.

Tabic 1 Radionuclides classified-as " major" Nuclide Half-lif3 Na-22 2.62 y

P-32 14.30 d pure beta emitter S-35 87.90 d pure beta emitter Sc-46 83.90 d

Mn-54 312.50 d co-58 79.80 d

Zn-65 243.70 d Rb-86 18.60 d

Cs-134 2.05 y

Ta-182 114.50'd Tabic 2 Radionuclides classified as " minor" Nuclide Half-life Cr-51 27.70 d Fe-59 44.60 d Co-60 5.27 y

Sb-124 60.30 d h.

The data for nuclides with gamma emission are obtained from measurements.with High Resolution Ge (or gel 1)

Detectors and nuclides with pure beta emission are measured with GM Detectors. The beta emitters are identified from spectroscopic measurements with a Liquid Scintillation Detector.

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Measurements on a large number of samples show that material of Sri Lanka origin is very homelencous, both with regard to the distribution of active nucifies (trace element profile) and with regard to the total specific activity for a given irradiation dose. It is therefore possible to combine histori-cal data into reference distributions against which material-from a specific irradiation load can be tested.

After cach irradiation the distribution of active nuclides and the average specific activity will be measured on the-High Resolution Gamma Detector for samples from 10 different positions in the irradiation box and compared tti the corre-sponding historical reference 1 distribution. If s ignificant deviation is observed, the entire unit will be oxamined and-characterized before it is entered into the reg'11ar procedure for counting on Na1 Detectors-and' complete beta survey on the GM Detector.

The measurements described above will be made before shipping to the importers facility in the United States. Each shipping unit (irradiation unit) will be accompanied by the records of the measurements for.this particular unit. The information l

enclosed with the material will be verified-at the. importers facility by measurements on randomly selected shipping units.

Calibre od NaI Detectors for gamma measurements and'cali-brater i Detectors for beta measurements will be available at the mporters facility for this purpose.

1.

The specific activity of the stones imported to the United States will be below the limits set by NRC for re-Icace.to unlicensed persons. For stones with average (his-toric) distribution of active nuclides, this corresponds to approximately 20 Bq/g. For the calculation of the inventory of activity at the importers facility we use 25 Bq/g as a conservative upper limit. The maxiraum anticipated inventory is 1.000.000 carats or 200.000 g and the maximum anticipated inventory of activity is therefore 6

A = 25 Bq/g x 200.000 g = 5 x 10 Bq or

~4 A = 1.35 x 10 Ci As the activity in the gems is composed of the activity from a large number of nuclides, we request a possession license for elements with atomic numbers 1 through 94 with a maximum total activity of 200 uCi.

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2.

Description of Handling of Gems a.

In order to avoid all risks of removable contamination the gemstones are washed in a chemical solution before irradiation treatment, encapsulated in realed containers and acid washed and rinsed after the treatment. Analysis of the post radiation. rinse solution has revealed only very low levels of activity and we are confident that no removable contamination can be found on the surface of the gemstones.

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Under no circumstances do we expect the surf ace contamination -

to represent more than a sma11' fraction of the total activity 1

of the gemstones.

b.

The importers facility will be used for the following 3

sequence of processing:

1) Quality Assurance All gemstones arriving at the importers facility are expected to be releasable in accordanc; with NRC standards. Each shipping unit (sealed package contain-ing gems from a specific size group) vill be ac-companied by a record of the results cf the. counting i

at the treatment facility. However, thi importer will l

perform quality assurance and verification by recount-ing a percentage of the gemstones recei'ed, and i

u comparing the results of the recounts to the data l

provided with the shipment.

t 11)

Inventory Ge:astones passing the importers QA procedures will go in:o inventory at the importers f acility until shipped i

to customers. If a gemstone fails the,OA-procedure it wi'.1 indicate a failure of the QT equipment or pro-cedures either prior to or afte'.1the-import. Such a failure will lead to an immediate cessation of de-livery to customers and to r review of equipment and procedures until the failure, is identified. Depending upon the nature'of the fai.iure, gemstones may be I

returned to the treatment facility to be recounted after correction of the failure.

iii) Shipment After successfully passing the QA procedures gemsto*as will be shipped from inventory to unlicensed customits.

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3 There are no restrictions on the organizations which c.will roccive gemstones from inventory. These organizations i

will include wholesalers and manufacturing jewelers and will most likely not include individual retail jewolors or con-sumers.

d.

It is the intention of both'the treatment facility and j

the importer that the QA procedure assure that no gemstones exceeding NRC criteria for release to unlicensed receiver be imported.into the United States. The only exception would be due to a failure.of the QA instruments or procedurcs at the treatment facility which will be revealed by the independent QA at the importers facility. Under those circumstances the gemstones would be returned-to the treatment f acility, the (N4 failure rectified and the gemstones allowed to decay until 4

they meet the NRC standards. They would reenter the normal TNA stream'at that point and could be reimported as appropriate.

There is no intention of holding gemstones exceeding NRC limits in storage at the importers facility.

Records of the counting at the treatment facility and records of all QA activitics at the importers facility will be kept at the importers facility. These records will include the re-sults of counting and calibration of counting equipment per-formed at the importers facility as explained in Appendix B.

C.

Information Required by 10CFR32.11 1.

The general requirement of 10CFR30.33 are complied with as follows:

J a.

It is intended that only gemstonos meeting NRC critoria for release to unlicensed receiver be imported into the United States. The material will be subjectsto multiple t

QA steps prior to importation, including High Resolution Gamma Spectroscopy (HRGS) measurements on. selected batches to establish isotope distribution and Na1 counting'to identify individual stones which exceed NRC exempt limits. At the i

import site further QA procedures will verify those results and provide an independent check of the entire procedure.

There is, thus, no risk to public health posed.by unauthorized removal of gemstones from the importers site'. The material will in any case be secured against unauthorized removal as appropriate for its commercial value.

b.

Overall supervision of the gemstone irradiation i

program will be performed by K SkB1d. Dr SkB1d has a Ph.D in physics with extensive experience in neutron scattering and reactor and radiation physics. He has been Director of Research at Studsvik Nuc1 car, and will also maintain tech-1 nical control over operations ~ conducted outside the United

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States, as well as providing support to thf stiff ^at thM4"-

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importers facility. Responsible for the QA program at the treatment f acility will be P. svensson. Mr Svensson has an engineering degree and over 30 years of experience in radio-l chemistry. He has been responsible for the Nuclear Activation Analysis (NAA) Program at.the R2 and R20 reactors for the last 10. years. In this capacity he is responsible for irradi-ation of the samples at the reactors and the analysis of the activity profiles of the irradiated samples from High Reso-lution Gamma spectroscopy measurements and other nuclear radiation detection methods. At the importers facility, memi is of the Alnor professional staff will implement the QA program. The Alnor facility is involved with' sales and-installation of nuclear detection equipment (see-Appendix A) and qualified individuals are continually available for this program. Responsible for the QA program at the importers f acility will be R Dejus. Dr Dejus.has a Ph.D. in physics 7

i with over 10 years of. experience in radiation physics.and nuclear instrumentation, including low level counting with o

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NaI detectors and other radiation detection systems.

2.

Information: Required by 10CFR32.11 (b) a.

By-product material will be introduced into topaz, a mineral of chemical composition A12SiO4(F,OH)2. Most of the induced activity (other than production of P-32 from Si-30) is due to activation of impurities within the-topaz rather than to the intrinsic elemental content 1and the production of activity is in all cases unintentional.

O b.

The topaz will be colored by radiation and used for jewelry. The by-product material is unintentional and will decay to nearly negligible leve19 after a relatively short time (~ 1 year). The by-product material-will be permanently contained within the gamstones and can not be reconcentrated.

c.

By-product material-is introduced in topas by irradiation at a reactor in cor. tainers well shielded against thermal neutrons. However, some moderation occurs within the gemstones and thus both f ast neutron (n,p),. (n,2n) and (n,n) 4 reactions and thermal and: epithermal (n,Y) reactions take place.

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d.

Immediately after irradiation.the concentration of activity is quite high due to the presence of Na-24 produced by fast neutron (n,a) activation of Al-27, which is a constitutional component of the material. However after the 7

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short lived species have decayed (- 4 weeks) the activity level of the gamma emitting species (Mn-54, sc-46 and Ta-182) is generally found to be less than or equal to - 20 Bq/g. In addition-P-32 contributes to the specific activity, but the 14-day half life for this nuclide reduces its importance i

after a short storage.

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At release to persons exempt from licensing the maximum concentration of isotopes will be less than the con-centration corresponding to the sum.of ratios allowed.in 10CFR30.70. Statistical analysis has been applied to and combined with the counting of individual stones to guarantee that no more than 1 stone in a 1000 (within a given size category) with activity more than twice that allowed by 10CFR30.70 will be released. For medium and large sites the i

probability will be.substantially lower than 1 per.1000.

f.

The activity will be characterized by High Reso-lution Gamma Counting.with Ge or Ge(Li) detectors for selected samples in each irradiation unit. Beta counting with GM Detectors and gamma counting with HaI(Tl) Detectors will I

be made on all the material before shipping to the United States. The details of the counting procedures are provided in Sec. D of the QA program, The methods provide that there is less than a 1 per 1000 chance that within a-given size group, an outlier with.twice the NRC allowed activity will be accepted. In general the irradiation methods will insure that the probability will be even smaller for all but the smallest size gemstones.

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The time interval between completion of irradi-ation and transfer to unlicensed individuals depends on the irradiation dose, which is related to the size of gemstone-(

and to the desired depth of color as well as to=the distri-bution of impurities in the starting material. The time interval between the end of ir radiation and the transfer of the material to unlicensed pe2 sons will not be less than 45 days and in general substantially longer.

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3.

Information Required-by 10CFR32.11(c)l f

Both the starting material, which is exclusively a.

of Sri Lanka origin, and'the irradiation conditions are l

chosen to minimize activation of the-gems. The QA program is designed in accordance with NRC' specifications, such that any gemstones which have higher than allowed activity are identi-fled and stored until the activity has decreased to accept-8 i

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able levels. The QA program includes multiple independent verifications, both prior to and after import, in order to assure the reliability of the methods and the instrumentation and to protect against the inadvertent release of gemstones 1

exceeding NRC limits. The various steps in the QA program are y

described in Sec. D and in Appendix B.

b.

No reconcentration of activity is expected to occur in the gemstones.

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The induced activity in irradiated topaz may vary by orders of magnitude depending on.the origin of the gemstones and the irradiation conditions, especially the shielding to eliminate thermal and epithermal neutrons. We have optimized the shielding parameters by extensive Monte Carlo neutron transport calculations using the VIM code developed at Argonne National Laboratory. We use only gems of 1

Sri Lanka origin, which is the material which gives by far the lowest activity of all the materials of various origins which we have tested.

After only a short decay period (- 30 days) the largest stones, which have received the lowest irradiation dose are on average substantially below the allowed concen-trations of activity. On the other hand, smaller stones, which requires higher doses, are on average close to the 4

limit and require longer decay times. Imposition of lower limits would significantly affect the ability to carry on a normal commerce in these gemstones, in which color treatment l

is carried out in response to specific market conditions for color quality, d.

It is difficult to envisage circumstances under which these gemstones would be incorporated into any product

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designed for ingestion. Neither is it likely that the ma-terial could be inhaled, even in the unlikely event that the gemstones were pulverized.

D.

Information on Quality Assurance (QA) Program 1.

The radiation detection equipnent used to identify and

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quantify the radioactivity induced in the gemstones includes-High Resolution Gamma Detectors for identification and characterization of gamma-emitting nuclides.

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I NaI(TI) Detectors to quantify the gamma-activity Liquid Scintillation Detectors for identification and l

characteritation of beta-emitting nuclides.

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GM Detectors to quantify the beta activity.

Details of the radiation detection equipment and the associ-l ated shielding is decribed in Appendix-B (proprietary inform-ation).

2.

The frequency, standards (including radionuclide, activity and accuracy) and procedures used to calibrate the radiation detection equipment is specified in conjunction with the description of the equipment in Appendix B (prop-rietary information).

3.

The counting procedures and how external measurements are converted to concentration values is described in Appendix B (proprietary information).

4.

Responsible for the QA program at the treatment facility will be Mr P Svensson, and responsible for the QA program at the importers facility will be Dr R Dejus. The general qualifications of Mr Svensson and Dr Dejus are described above in the response to Item C.1.b and detailed descriptions of their train!'1 and experience in low-level counting techniques are giv.

Appendix D.

5.

The QA program used to a,,are reliable data is described in Appendix B (proprietary information).

6.a Upon request, the applicant will provide samples of irradiated gemstones to NRC for independent verification of radionuclide identify and concentration. The request from NRC l

should be in writing, signed by the appropriate Regional Administrator or the Director, office of Nuclear Material Safety and Safeguards and should specify who (NRC represent-ative, NRC contractor or applicant) will select samples.

After analysis, samples should be returned promptly to the applicant and should remain in the possession of NRC until returned to the applicant.

6.b Upon request, the applicant will analyze qualitatively and/or quantitatively gemstones or groups of gemstones pro-vided by NRC or its contractor. The-request from NRC should be in writing, signed by the appropriate Regional Adminis-10

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f trator or Director, office of Nuclear Material Safety and Safeguords, and should specify the type of analysis requested and techniques to be-followed and should provide instructions for reporting results and for returning gemstones to appli-cant. It is understood that only those types of analysis and techniques which are specified in this application will be-requested.

E.

Information Needed to support Roquest for Exemption from Portion of.10 CFR32.11(c) 1.

If NRC considers gems to be products intended for application.to human beings,-then an exemption from this portion requirements'in 10CFR32.11(c) is requested.

2.

Using a worst case scenario, we have calculated the radiation dose during the first year of.wcar for a gemstone l

of weight 5 g (25 et) which is worn continuously (24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> per day, 365 days per year). The calculations are made for a stone at the maximum concentrations of radioactivity as identified in Item c.2.c and with a composition of radio-nuclides which corresponds to the average composition as given in Item D.2.a. The details of those calculations are given in Appendix C and the results are summarized in Tabic 3.

Table 3 l

l Y-dose at contact Y-dose at 4 cm beta-doso at contact (mrem /ycarl)

(mrem /yearl)

(mrom/yearl) 260 1

140 The beta dose at 4 cm is insignificant compared t o the Y dose and is not shown in Table 3.

For an assessment of the health risk to unlicensed persons we note the following points:

The doses shown in Table 3 are well below the average background radiation level.

The exposure from the gemstone is a local dose and should j

be scaled down by a very large factor when compared to the background radiation, which is a full-body exposure.

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The local dose at contact is obtained by assuming that the stone is fixed.at'one point. The only gem in direct contact would be mounted in a pendant and would not be fixed at one point but rather move across the skin.

The calculations are based on very conservative assumptions. For example, continous wear is assumed and the attenuation.from the; jewelry setting is-neglected.

The conclusion is therefore that the release of gem-'

stones at the limits identified in Item C.2.e will not pose any health risk to unlicensed persons.

3.

For gems at twice the concentrations of radioactivity i

l as identified in Item C.2.e, the doses would be twice those shown in Table 3. Insofar as only very few stones (1 per 1000) would be at twice the limit and insofar as the con '

clusions in E.2 are valid even with.twice the doses shown in f

Table 3,Rwe conclude that outliers wil' not pose any health risk to unlicensed persons.

4.

The following label will be enclosed with material released'under the license'which is applied for in this.

applications -

"These topaz have been irradiated and contain slight amounts of radioactivity. The material is being r61 eased to un-i licensed persons by:Studsvik Nuclear and Alnor Instrument i

Company in accordance with Material License xxx,. issued by l

the U.S. Nuclear Regulatory Commission. It is recommended that information be provided to consumers at point-of-sale of the irradiated topaz that alerts purchasers of the presence of low level radioactivity so that they can make an informed decision at time of purchase."

F.

Fee Information and Signature 1.

The appropriate fee for license pursuant to 10CFR32.11 to distribute neutron-irradiatedLgems to person 1 exempt from licensing is enclosed with.this application.

2.

A certification statement as shown in the NRC document "Information Needed From an Importer to Support Application.

for License Pursuant to 10CFR32.11 to Distribute Neutron-Irradiated Gems to Persons Exempt from Licensing (February 25, 1988)" is enclosed with this application.

12 i

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CERTIFICATIoH STATEMENT The applicant understands that all statements and represen-tations made in this application are binding upon the applicant.

The applicant and any official executing this certification on behalf of the applicant, named in Item A.1, certify that this application is prepared in conformity with Title 10, code of Federal Regulations, Parts-30, 32, 33, 34, 35, and 40 and, if applicable, equivalent regulations of Agreement States, and that all information contained herein, is true and correct to the.best of their knowledge and belief.

Warning: 18 U.S.C. Section 1001 Act of June 25, 1948, 62 Stat, 749 makes it a criminal offense to make a willfully falso statement or representation to any department or agency of the United States as to any matter within its jurisdiction.

I SIGNATURE AND DATE:

/,b 0 i FE8. M i

signature T61ve Kivikas Date certifying officer Sr Vice President Studsvik Nuc1 car 01 FEB. E Si nature Rolf Tedestedt Date i

i Certifying Officer Sr Vice President studsvik Instrumet.-

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APPENDIX A This Appendix contains information on the organization of the Studsvik Group and brief descriptions of the activities within-Studsvik Nuclear and Alnor Instrument Company.

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As shown in the enclosed organization chart, Studsvik Nuclear and Alnor Instrument Company are units within the Studsvik Group.

The parent company of the Group, Studsvik AB, is fully owned by the Swedish Government. The 1988 Annual Report for the Studsvik-Group is enclosed.

]

The gemstone irradiation program is organized as a project within the Radiation Applications Unit of Studsvik Nuclear. The operation of the.R2 and R2-0 reactors, where the gemstones.are ir-radiated,-is the responsibility of theLFuel Technology unit. Since the printing of the enclosed chart, the organization has changed, such that the Radiation Applications Unit has been incorporated into the Fuel Technology Unit.-All aspects:of the gemstone,ir-i radiation program are now the responsiblity of personnel in the Fuel Technology Unit. The various programs within Studsvik Nuclear are described briefly in the enclosed pamphlet.

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l Encl. 1 Organization Chart for the Studsvik Group Encl. 2 1988 Annual Report for the Studsvik Group Encl. 3 Organization Chart for-Studsvik Nuclear Encl. 4 Pamphlet over Studsvik Nuclear A-2 i

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Advanced Core Analysis Sieuesdation Waste Services Isotope and Syssenes Techniques Indmerimi Services BertilLundell Rune HRansson OssenRosdahl Gunnarlimurig RolfLundsnem Safety Analysis Fod Pierfonemece Consputer Missee Tedusokgy Analysis Services Td_ *;_ a KjellJohansson RoyForsyth Huan U..~;~ig KarinBrod&i ChristianGraslund

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Chensistry.

Services Sales SerenSalomonsson KnsaanSaltvedt(act)

. AkeFrant H-PHermansson R:"::

_hy Irradiation Reactor Materials Facilities HansTovedat HansTomani Andersund Radiation Reactor Operatiosi Protection RobertHedvall BorjeNilsscn Studsvik udear

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Financial Position, ' ~ ' * - l Group Group Chief Executive, Kjell Hakansson 12 Income Statement, Studsvik AB 12 Balance Sheet, ( Studsvik AB 13 Statement of Changes in ( Financial Position, Studsvik AB 14 Notes to the Consolidated and Parent Company's Financial Statements 18 [ Auditors' Report ~ COVER: l'esting ofpulverized solidfuelin a drop-tubefurnace. Combustion of the fuelparticles is carried out in a descending gas stream. The degree of burnout is analyzed at ddetent levels in thefurnace. The tests are conducted by the Studsvik ~ m, e-c. r. .n ..._,n.

f ' yWeimust i,mprove our project q -management skills" 5 Interview with Group Chief Executive, ] Kjell HAkansson - c . O - 1987 marked the beginning of an improvement - This has resulted in an order from the USA for a in Studsvik's situation.11as this continued throug-low level waste inclnerator. hout 19887 O The R2 reactor has built up a backlog of orders - which wiii make a positive contribuiion to ihe i - Orders received by the group have reached the work load over a long period of time, and our. level of SEK 500 million.'In 1987, the inflow'of cooperation with the Japanese in the field of fuel J orders reached a peak, largely due~ to a couple of and materials testing has been developed. . sizeable ordets, such as the simulator for Japan and During the year, a simulator to Japan was deli-fuel tests covering a period of several years. vered on schedule. This delivery will be an impor-Losses for 1988 are still decreasing, which is a tant reference for future export sales. . positive sign. But this is occurring at a slower rate Studsvik Energy's profit did not improve as than the goals that we have set up, expected. The goal for 1988 had been to reach . It is not the volume of orders that is inadequate. - break-even. j In 1988, some of the projects that we carried out The remaining subsidiaries, Studsvik Environ-did not yield the surplus we expected. We are now mental Consultants AB and District Heating Engi-improving our routines and project management in neering AB both show satisfactory profits. O ' order to rectify this situation. The division has channelled its efforts into a M L L project where a domestic fuel gas is to be used for small-scale electricity production. The first stages i' of the project have been successful and we aim to-O complete the project during the present year with j iong-ienn testing. -- Are you satisfied with the resultsfrom the diffe-The Alnor Division has had continued success L rent divisions? in the market for electronic dosimetry, including the USA. Unfortunately, the division has had some - In all, Studsvik Nuclear has improved its profits trouble with the performance of products delive-in spite of severe disruptions due to the Transnuk. red. This problem has been resolved sa'.isfactorily, lear (TN) affair. although it has resulted in a severe financial set. During the year, contracts have been signed back. with the GNS consortium in West Germany which A new area of importance to the division is ra-is taking over the work previously done by TN as diation measurement for defence and civil defence, regards the transportation of low level radioactive where the technique developed for the civilian L i ' waste. The TN affair has not sitaken West German market can be applied with new and improved confidence in Studsvik's work. However, we can solutions. Interest in the area has grown since the - testify to our abilities which are in the forefront of Chemobyl accident. 'g the field seen from an international perspective. MPC is expanding its program with products '

3 ; f +l n I a i i 4i outside the EML1 technique through joint worki increasing future knowledge ab'out the environ-q - with other companies. I am very pleased to see that ment and developing improved energy technology. [ the division is profitable.and that it has attained its ' It is therefore important that the work that we g goal as regards profit for the year,- ourselves conduct on the Studsvik site should also : l be exemplary from an environmental standpoint. in the middle of 1988,' we appointed a special environmental auditor to follow ~ up our activities and propose improvements. - Studsvik's waste incinerator has been the subject of much debate during the past year. What is thefuture of this project? ' - An application was submitted to the county - Studsvik has often been subjected to public administrative board during the year for a new scrutiny during 1988. How does the company view licence for the incineration of low level wuste. The this somewhat unusualsituation?. licence granted by the board contained tougher re-( .quirements on non-radiological emissions. - For a long time we led _quite a rnodest existen-L The licencing issue has stirred up local opinion, cc. However, after the Transnuklear affair, curiosi-and following an appeal by private individuals, the ty about Studsvik's activities increased dramatical-final decision rests with thy govemment, ly. We have therefore improved the way we com-municate with the public as regards Studsvik's ac-g j tivities and we have' disseminated information 1 1 through newspaper advertisements and brochures to households. l . It is necessary to find other ways of spreading - What role can Studsvik play in a society which itiormation about Studsvik besides through the is increasingly conscious of the environment? mass media. However, we are looking forward to impro' ed relations with the local media, so that the. v ( - Knowledge about the environmental impact of -general public can get a more balanced view of our different kinds of industrial processes is growing activities. ,,,,. g rapidly, and I expect that all our technical research - The government has decided to set up a local 'W activities will be affected by the new environmen-safety committee for Studsvik. This will giv8 us tal requirements, the opportunity to keep the local govemment and On the whole, all our activities research, tech-politicians in the municipality of Nyk6 ping well-

L \\ 1 i l - + L / l J 1 i 1. i

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'V - The amendment of the Finance Act has now - In your opinion, what is importantfor Studsvik ' beenfinalized. What are the economic consequen-as the company enters the nineties? ces of thisfor the company? i .O < Sweden's nuclear power plants still have about ,) - The amendment m'akes it possible to finance the 75 Wof their total lifetime of electricity generation management of our nuclear waste and the future left to produce by the year 2010. Studsvik Nuc-l decommissioning of Studsvik's facilities. Previou. . lear's expertise is an important complement to that sly, the Act was only applicabic to nuclear power of the nuclear power plants. We contribute to plants. The funds are now being made available by maintain a~high level of safety and availability the Natior,al Board for Spent Nuclear Fuel and with the selection of services and ptoducts we' consists of a fee which is at present 0.l_6re for = provide. We are also continuing to develop the each kilowatthour produced in a Swedish nuclear. research for the Swedish nuclear power industry, power plant. This represents a total of SEK 70 . which is primarily directed towards important' - million per year. A special company, AE Projekt problem' areas for ageing reactors. We also accu : AB, has been formed, which is to operate indepen-mulate vital experience within our specialist areas dently of the business activities of Studsvik The-through contact with the nuclear power industry r ( task of the company is to manage Studsvik's and. . outside Sweden. 4 O the former AB Atomenergi's nuclear waste, the. ~ Studsvik Energy plays an important role in - future decommissioning of active facilities (the R2_ maintaining a link between the research conducted - reactor, the hot cell laboratory and the waste facill-at universities and the development work carried 4

ties), as well as the restoration work on the Ran-

' out within industry. This has become more impor-O -lstad site f 11 wing the uranium mining conducted. tant with regard to the phase-out of nuclear power - f there. The utilities and the state are being kept in. and the environmental problems connected with formed of progress in this area by representatives ~ lternative energy production. a on the Board of Directors of AE-Projekt AB. Studsvik Energy can -' with the basic resources-at its disposal in Stttdsvik - perform essential tasks - within the framework of the attemative energy-research program, and utilize the expertise develo. + ped in the eighties through extended work done in cooperation with the energy industry. - l. RolfBladh v t4

- ' ~ ~ l. [ Te+ pq . o.,v, m - ( 6 w .? -t i %. p s x i ( l I 4 4 ^' D s 0 t-y l .e' l During the year, the Studsvik subsidiary, Studsvik Environmental Consultants AB, acquired an advanced gas chromatograph / ch robe ns lorophenols chl r n ted d6enz fu a s an d benz x 1 i e r 4 \\. c .i e' s (S t' f M, Tb i nken a d ng e et m cros y g an fysis dI on o s a d ins a u n fo he i e m as microanalysis (EPMA) is also carried out. control of mohs,1 metal at iron and steel works, especially

i!- ), i"o craiAt o - f, TP .c 0h1 1 \\ l .ll . ( i I' ..o f A I j.* 0 s 'N ma Sp trom er e eQU e i ake$ S tble o a e and qua in e mounts of n to I ant SUhas chlorobenzenes, chlorophenols, chlorinated dibenzofurans and dibenzodioxins. I 8 [' N e M C lOfjh(l .lI l s _gg ll -p 9 Y[., tin ng o e n m er y ge ena is I on o s a d Iis a u nI theI o m asur n$on a d microanalysis (EPMA) is also carried out. control of mohen metal at iron and steel works, especially

n 1

Report of,the. Board of Directors; U

J ' De Board of Directors and the Managing Director of Studsvik Ah herewith submit their report on company op@ f . tions for fiscal year 1988. ( l + ,c I 1 9 Group-j $ ; Turnover and Profit - ~ Operations ' New orders for the group amounted to SEK 484.1 million l (previous fiscal year, SEK 516.0 million). Turnover amoun-Studsvik Nuclear ted to SEK 469.6 million (465.8), an increase of one per cent. Operations within this division center around five business i ne mvo, iced sales to customers outside Sweden were SEK - units. De division also has an established base of activities 202.9 million or 43 per cent of gross turnover. Exports from conducted through the subsidiaries, Studsvik of America Inc Sweden totaled SEK 101.9 million (77.3) which is 22 per -and Studsvik Japan Ltd,~ ' cent of turnover. a.. Tumover for 1988 amounted to SEK 221 million (195) of Operatm.g profit after planned deprecs. tion mereased to SEK. which exports acc ounted for 38% Profit after depreciation 12.0 million ( 24.2). Income after net financial items increased to SEK 12.2 million (5.6), 7 amounted to SEK -12.8 million ( 29.2). Profit before approps riations and tax totaled SEK 26.3 million (20.0) and reported The largest undenaking within the' AMOS project (moderni. net profit after appropriations and tax amounted to SEK 24.4 zation of the waste facilities in Studsvik) was completed l million (20.4), dudng the year. The harbour facility for transporting radioac-i tive waste to the SFR facility for final disposal was inaugura-O . ne return on total ccpital employed amounted to SEK -2,4 ted on November 30,1988. ( 7.7) per cent (see Note 11).

Reimbursement for the use of the R2 reactor for research

. amounted to SEK 17.0 million (15.5). Financial Survey ~ h The surplus from business operations amounted to SEK 56.9 Within Power Plant Services the new furnace for melting million (55.5). Working capital (excluding liquid assets) low level waste has been operated as planned. However, it decreased by SEK 74.5 million. Group investments amoun. has not been possible to carry out the incineration of low ted to SEK 15.6 million (11.2).

level waste to the same extent as befores since the agreement i

. with the West German co npany, Transnuklear, was termina. g' ted;Studsvik's incineration system'made a commercial At the end of the year, liquid assets amounted to SEK 46.8 < million (89.6). Liquidity, calculated as the ratio between breakthrough during the year, ne business unit received a current assets and current liabilities was 13 (1,1). large order from the US A for a complete incineration facility. De debet equity ratio, expressed as the ratio between equity The inflow of orders to Fuel Technology has been positive. plus 50 per cent of untaxed reserves, and the balance sheet Operating time for the R2 reactor totaled approximately total amounted to28 (17)per cent. 4,400 hours and the work load was considerably higher than j the two previous years. Sales of in-core fuel management codes on the US market have continued favourably and the j division has also had considerable success in Europe. Personnel . For the average number of employces and salaries, see Note Within Instrument Systems, the most important products 12. are process simulators, operator training and monitoring i 7 i, l

,?' systems. During 1988, simulators were delivered to Korea benchmarked in production piants and have indicated the Advanced Energy Research Institute and Japan Atomic possibilities of reducing or avoiding the formation of dioxins Power Company. Tie latter delivery was a three plant during waste incineration. simulator. Orders 'save been received Imm the Swedish State Power Board (Vt,tenfall) for a simulator for Ringhals 1 and Within Systems and Distribution, a program for distribution one for Marvikeu's power station. Monitoring systems have technology has also been started alongside the long term been delivered t i Barseback 2 and Oskarshamn 1. heat pump technology program aircady in progress. Radiation App'ications conducts neutron doping of semi. Materlats Technology is concentrating on evaluating the conducting silic >ne and irradiation of mecrats in the R2 long term properties of metals and polymers in different reactor. The inflow of orders has been favourable and environments. %c volume of assignments is developing production capacity has been successively raised. positively. Research work concerning ageing of polymers as well as corrosion and crosion in metals is being carried out Safety and System Analysis, which mainly carries out and has been intensified by expanding the work carried out in g cooperation with the Inst ute of Technology (KTH), Stock. h T consulting and applied research within the fields of radiocco-logy and reactor safety for the Swedish market, has had a

holm, very positive year in terms of profit. Radon measurement is also holding its own in spite of tough competition. The ma-Developments within Studsvik Environmental Consultants nagement of old waste, mainly originating from activities AB have been very positive. During the year, h analysis carried out by AB Atomenergi,is predominant among the laboratory was specially adapted for the skilled analysis of domestic assignments received and the work is being con-organic tracer elements. De company has established a ducted on behalf of the Swedish govemment until year cnd.

tystem of cooperation with external laboratories to cover the . need for other kinds of analyses. Turnover amounted to SEK 15.6 million (13.2) and income after net financial items amounted, ; SEK 2.0 million (0.8). Dista i lleating Engineering AB has a stable base of actit as with its project planning of district heating systems, Studsvik Energy central boiler plants and sub stations. Turnover has been Apart from activities within the parent company, busin 'ss positive and the company has increased its market shares, Tumover amounted to SEK 10.9 million (8.5) and income operations in Studsvik Energy also include the subsidia ies, Studsvik Environmental Consultants AB, Swedish Motor after net financial items amounted to SEK 1.2 million (1,4). Fuel Technology AB, and District Heating Engineering AB. During the year, turnover amounted to SEK 90.0 million Activities within Swedish Motor Fuel Technology AB were (102.8) and operating profit after depreciation totaled SEK phased out during the year. -4.9 million (-3.5). De decline in turnover is mainly due to the sale on January 1,1988,of Scandenergy AB, which was part of the division during 1987. Turnover for the parent company totaled SEK 64.3 million (66.4) and profit after depreciation amounted to SEK 6.9 million ( 3.6). . Ainor Division in 1988, the Alnor division comprised ti.e parent company, In spite of maintaining the level of ordecs received in 1988, Alnor AB, and the subsidiaries, Alnor inc, Alnor Oy and when compared to 1987, parent company invoicing has Alnor Instrument AB. Alnor inc is the parent company for fallen somewhat and profits have severely decreased. The the US group, with subsidiaries, Alnor Instrument Co and reason for this is an unequal distribution of the orders Alnor Nuclear Corp. Alnor Instrument Co and A!nor Oy are received among the different units and resulting planning manufacturing companies while Alner Instrument AB and difficulties. Corrective measures have been adopted during Alnor Nuclear Corp are mainly sales companies. the year. Alnor develops, manufactures and sells instruments for Within Thermal Processes, the development of atmospheric measuring air flow, air humidity, temperature and ionising . gasification has been positive and pilot plant. scale experi-radiation including personnel dosimetry. About 90 % of its ments within the small scale cogeneration project have been sales are made outside Sweden. i i carried out with interesting results. The project is being conducted together with Hedemora Diesel AB and Vatten. Turnover amounted to SEK 105.7 million (103.8). Operating fall, and is being supported by the National Energy Admini-profit after depreciation amounted to SEK 2.1 million (-2.6) ....:- n,....- m.,~,,4,.m.m n;,,,,um ;m hwe bren nnd income after net financial items amounted to SEK 4.5

Asilanmaak&.&.L:.l x.i l o1 e a l: 1 d l h i l miliion( u). Parent Company j Alnot has continued to dominate the world market for l electronic personnel dosimeters for the nuclear power Orders received by the parent company amounted to SEK industry. Newly developed software package:. which were 317.9 million (316.3). introduced during the year, have. met with consider,ble Tumover amounted to SEK 3101 million (287.0), of which SEK 84.0 million (56.3) comprised foreign sales. Intra-group Ainor's Rad 85 dosimeter was introduced during the year. sales amounted to 7.6 % of sales and purchases amounted to o ne dosimeter is designed to fulfill all relevant specifications 4.0 % of operating expenses. i 4 and standards. However, it has been found that the perfor-mance of the dosimeters is impaired under certam extreme Operating profit after depreciation improved to SEK 13.5 conditions. Nevertheless, it has been possible to eliminate million ( 18.6) profit before appropriations and tax amounted 6 these disturbances by modifymg the product. Alnor has to SEK 28.7 million (23.4). Net profit for the year after tax decided to modify dosimeters which have already been deli-amounted to SEK 26.6 million (24.4). vered.The cost of the modifin, tion program has been taken i into account in 1988's results. For the average number of employees and salaries, see Note 12. g ne company has received a sharenolder's contributicr, vi SEK 40 million which is the fmal stage in the financial re-structuring program determined by the Swedish parliament during 1988, MPC Division The MPC group markets, manufactures and installs equip-.Parliament has decided that the future cost of decommissio-ning the older nuclear power plants in Studsvik and Ranstad, i ment for liquid level measurement and control of molten as well as the management and storage of nuclear fuel and metal in iron and steel plants. Marketing and sales have been conducted through the parent company, MPC, Metal Process radioactive waste from previously conducted nuclear re-scarch shall be financed by a fee on electricity generated by Control AB, subsidiatics in West Germany and the US as well as through agents and distributors. . nuclear power (Finance Act 1988:1597). The new model for financing &cse costs will take effect as of January 1,1989. e; Turnover for the group amounted to SEK 24.0 million (20.1). Studsvik AB has formed the company AE Projekt AB,in the Operating profit after depreciation totaled SEK 1.5 million ( 2.9) and income after net financial items amounted to SEK aim of carrying out decommissioning activities independent, h ra.6 million (-4.0). Operations during the year have been cha-ly from the business activities of the Studsvik group. 0 cterized by t'ie emphasis on marketing within prioritized ' markets in the US, Europe and Japan. New digital electronics have replxed the older analog technology. Deliveries of systems featuring the new electronics have been made with 9 very favouriole results. Development resources have been channelled into the further development of existing systems. -i Contracts have been signed for the distribution of a microwa. ve measurement system produced by the Norwegian compa-ny, Autronica A/S. Export sales for the group represented 88 % of turnover. Service Division p' His division comprises the company's property administra-tion and service units, which provide the rest of the group

, P ;. .r i Consolidated Income Statement Consolidated Balance Sheet L~ 1: L SEK thousands SEK thousands 1988 ,1987 Dec 311988' Dec 311987 t OPERATING INCOME ASSETS Note 1 469 645 - 465 753 Current assets. OPERATING EXPENSES 451 774 459 398 Cash and bank ~46764E 89 616 Operating pront-Current investments 15 000 i before depreciation 17 871-6 355 Accounts receivable 66 372( 82 519 Planned depreciation Prepaid expenses - Note 2 -29 842 -30545 and accrued income L 8 263: 9 168 Operating profit Prepaid tax ,.!17L 393 ~ fter depreciation 11971 ~.. 24 190 Other receivables 58367 6 076 a Inventory Note 4 ,28 263' 29 453 FINANCI AL INCOME Work in progress Note 5

30 113' 35 025 AND EXPENSES
Advances to suppliers -

^ 213 Interest ircome 5 732 3 365. f, ' Interest expenses. - 6 531? - 9 668 Total current assets 200 628 252 463 1250 Foreign exchange gain / profit Profit after financialincome 29 243.. Blocked account. and expenses - 12 770' i with the Bank of Sweden f. E:. NORDINARY Investment reserve 117-225 - !! X 'E AND EXPENSES Renewal reserve 33 33 Extra ary income Note 3 52 799: 58 785 Extraorumary expenses Note 3 -13 743 - 9 559 ' Total. 150 258 Profit before appropriations and tax 26 286 ~ 19 983 Fixed assets APPROPRIATIONS Other shares and parucipations 17 715 Increase / decrease Note 7

15 568-'

in inventory reserve - 114 318 Other receivables --1 323 1353-i Decrease / increase Patents Note 8 115 - 183 in profit equalization reserve - 25 - - 392 GoodwillNote 8 ,3 060 3 557 Difference between Development costs book depreciation and brought forward Note 8- -798L planned depreciation Note 2 - 2 218-1300 New plar,t facilities 2 042'_ 2 753 Machinery and equipment Note 8 ' 56 787: 58 164 Utilization ofinvestment reserve 210. Utilization o renewal reserve 33. Fuel elements .. o r Decrease / increase for the R2 reactor Note 8 '14 848 ; 23 782 in other reserves 912: - 330-Buildings Note 8

33 698f 37 110 i

Imd and other realestate Note 8:: ' 6 563 F 6 585 Profit before tax 25 134? 20 879' l Tax - 742; - 473 Total fixed assets '134 802 Y 151 202 Minority interest -2 ~! Ty Net profit for the year 24 391 ( '20 404 )335 580 ? .403 923 l l i i n; a . j %4 [ g i 7 m-f r

L,. q ~ . Consolidated Statement of' i Changes in Financial Posi11on j SEK thousands Dec311988 Dec311987 1988 1987 ) LIABILITIES AND - LIQUID ASSETS AT j SIIAREllOLDERS' FQUITY Tile BEGINNING OF ) Current liabilities THE YEAR 89 616 38 672. Accounts payable 33 092 45 569 j Accrued expenses - , BUSINESS OPER ATIONS I and deferred income 49 814 46184 Operating income 469 645 465 753 Other liabillties 25 697 47913 Operating expenses 451 774 459 398 .lL - Advances from customers. 48 286' '100 713 [ Total current liabilities '156 889' 240 379 Extraordinary items ' 39 056 : 49226 i Long term liabilltles Minority share -2 { Otherliabilities -63 044. 73 059 l Provision for pensions ~ 6 361i 6 635 56 Q - 55 579 i 1 CHANGES IN I Totallong term liabilities. ' 69 405l 79 694 WORKING CAPITAL Decrease in inventory and Untaxed reserves. work in progress .6 102 5 162 - Inventory reserve 3 344-3 230. DecreaseAncrease Accumulated excess deprecation .in accounts receivable 16 147 . - 22 922-._ Note 8 19 835 - 17 617 - Increase / decrease Profit equalization reserve - ' 2 644 : 2 668 in other current receivables -13 266-9 804 investment rese,rve 10' 220 Decrease / increase Renewal reserve ' 33 in accounts payable a Other reserves in subsidiaries 2 197 3 109 - and advances from customers - 64 904-62 808 Total untaxed reserves 28 030. Decrease in other 26 877 current operating liabilities . -18 586 -50 321 ~ Minority interest. 0 232 -74 507 4 531 INVESTMENTS Shareholders' equity Investment in plant facilities -15 176- -5 185 Restricted . Investment in fuel elements --443- ' 4 322 Share capital,3 000 shares. byestment in shares -3 -l 712 par value SEK 10000 each 30 000 30 000 4- { Restricted reserves ~ l1889 11 8 % Unrestricted .-15 622 -11 219 = FINANCING Profit (loss) brought forward '

Financialincome and expenses Note 13

..14 975 5559 including foreign exchange net .-675- -7 763 4 Net profit for the year 24 392' 20404 Reported tax -742 -473 p Decreaschnerease- ,ii Total shareholders' equity 81 256-56 741 in bng term liabilities -10 521 5 743: l, Decrease / increase L Totalliabilities in blocked account in and shareholders' equity 335 580e 403 923 the Bank of Sweden .108' -111 g Decrease / increase i In long term receivables "30 -111 i PLEDGED ASSETS Sale of shares '2 150. -4 768 l[ 4 Real estate mortgages 10 000'- 10 000 l . Chattel mortgages -14 426 10 000 -9 650 = 2 053 Realestate and machinery - - pledged in the USA 292 CIIANGEIN Shares pledged I 7 578 . LIQUID ASSLTS - 42 852 50 944

CONTINGENT LIABILI,.d.SM R, ^

LIQUID ASSETS O LSuretics and other AT Tile END

contingent liabilities Note 10 5 5924 27 513. l OFTIIE YEAR.

'46 764 89 616 h. 1 J ____,_t

q~ Income Stat 4 men't, Balance Sheet, Studsvik AB Studsvik AB SEK thousands SEK thousands 1988 .1987 Dec 311988 Dec 311987 OPERATING INCOME ASSETS Note 1 - 310 126 286 966 Current assets OPERATING EXPENSES 299 079 281 206 Cash and bank 20 073 67 708 I I Operating profit Currentinvestments 15 000-before depreciation. 11 047 5760 Accounts receivable 28472' 40 787 Planned depreciation Receivables subsidiaries 10 276 8 452 l Note 2 24 517 24 315 Prepaid expenses ~ ~ and accrued income 6 364' 5 781 . Operating profit Other receivables ' 4 835 4 976 after depreciation 13 470 18 555 inventory Note 4 3 022 3 082 Work in progress Note 5 26 510 28 4N FINANCIALINCOME AND EXPENSES - Total current assets 114 552-159 190 Ii Interest income 5603 3 339 i Interest expenses 3 303 6 561 Foreign exchange gain / profit 0 1 274 Fixed assets i Shares in subsidiaries Note 6 25 378 27 020 1 I 2 300 -l 948 Shares and participations Note 7 15 459 15 463 l Profit after financial Receivables subsidiaries 2 000 4 000 income and expenses 11 170 20 503 Other receivables 133 24 Development costs brought forward Note 8 798 l New plant facilities .2N2 2 722 ' i EXTRAORDINARY Machinery and equipment INCOME AND EXPENSES Note 8 43 444 44 837 l . Extraordinary income Note 3 55 795 60 737 Fuel elements Extraordinary expenses Note 3 15 920 16 828 for the R2 reactor Note 8 14 848 23 782 Buildings Note 8 33 698 37 110 '39 875-43 909 Land and other real estate Noe8 6 563 6 585 Profit before appropriations and tax 28 705 23406 Total fixed assets 144 363 161 543 1 APPROPRIATIONS Decrease / increase in inventory reserve 22 94 Difference between book depreciation and planned g' depreciation Note 2 2 085 1067 Total assets i 258 915 320 733 -2 063 973 Profit before tax 26 642 24 379 Tax -4 Net prout for the year 26 638 24 375 .I

o.- Statement of Changes in-Financial Position, Studsvik AB SEK thousands Dec 311988-Dec 311987 1988 1987 LIABILITIES AND LIQUID ASSINS SII AREllOLDERS' EQUITY AT Tile BEGINNING ls. '; l Current liabflities ' OF Tile YEAR. 67 708 21 327 - Payables to subsidiaries 5102 ~ 4 413-l. - Accounts payable 17 699 18 467 BUSINESS O?ERATIONS L - Income tax liability ' 1 I Operating imm 310 126 286 966 1 Accrued expenses Operating expenses - 299 079 281 206 and deferred income 34 279. 36 673 Other liabilities 6 801 28 666 'l1 047 -5760- - Advances from customers '44 274, 97 141 Extraordinary items 39 875-43 909 Total current liabilities L - 108 156 185 361' -i Long term liabilities 1. Other liabilities Note 9 44 5il 57 900-CIIANGES IN t Provision for pensions =1956 I 911 WORKING CAPITAL Decrease in inventory - I -h . Totallong term liabilities 46 497-- 59 811 and work in progress / .I954 4 726 Decreaselincrease Untaxed reserves in accountreceivable : 12 315- -13 139 j L Inventory reserve 1057 1 079-Increase /decreve-Accumulated excess' in other current reeivables -17 266 8 685 '? depreciation Note 8 19 214 ~ 17 129 Decrease / increase in accounts payable Total untaxed reserves 20 271 18 208 . and advances from customers -53 635 51 360 Decrease in other current. Shareholders' equity operating liabilities 23 570 -51 905 - Restricted Share capital,3 000 shares -80 202 -273 par value SEK 10000 each 30 000-30 000 legal reserve 10 003 '10 000: INVESTMENTS Non restricted Investment in plant facilities -10 431 -2 631 Profit / loss brought forward 17 353 7 022 Investment in fuel elements. -443 -4 322 g Profit for the year 26 636 24 375 - Investment in shares 796 250 3 Total shareholders' equity 83 991 57 353. .-10 078 -6 703 l 1 3 g Totalliabilities rINANCING and shareholders' equity 258 915 320 733 Net tinancial income and expenses 2 300 l948 i i Reported tax -4 -4 i L Decrease / increase in long term liabilities 13 313' 2 529-Decrease /mcrease a in long term receivables 1891: 1662 y [7 PLEDGED ASSETS Sale of shares and participations 849 4 773 Real estate mortgage 10 000 .10 000 Chattel mortgages ' 5 000 ; > ~5000 , -8 277. 3 688 ~ CII ANGEIN CONTINGENT LIABILITIES Sureties for liabilities. LIQUID ASSETS M7 635 46 381 4 in favour of subsidiaries t 7 0902, . 7 380 ~ Other sureties MYD LIQUID ASSIUS

  1. b and contingent liabilities J AT TIIE END Note 10.
3 702 ~

17 176 OF Tile YEAR 20 073) 67 708 m -n c ~ l

m I Notes to the Consolidated and Parent Company's Financial Statements 1 Amounts in SEK thousands unless otherwise specified. Note 2 Depreciation De consolidated financial statements include Studsvik ABPlanned depreciation is based on the cost of the assets.The and the compames in which Studsvik AB held more than 50depreciation period is based on an assessment of the useful % of the votmg ng its of all shares directly or indirectly at economic life of the assets.ne following percentage depre. the end of the fisc year, ciation rates have been applied in most instances: De financial statements have been prepared in accordance Patents and goodwill 10 % with the purchase method. Development costs brought L Differences between the acquisition cost of shares in the forward 20 % subsidiaries and the shareholders' equity acquired in these Machinery and equipment 15 33 % Buildings 24% companies have, after analysis, been assigned to land, land and other real estate 08% machinery, patents and goodwill and are written off during l the estimated useful lifetimes of these assets. De diffe ence between book depreciation and planned L De income statements for subsidiaries outside Sweden have depreciation is reported in the income statement under - p! been translated at average exchange rates during the fiscal " Appropriations".This difference has affected the balance ' year, while the balance sheets for these companies have beensheet item " Accumulated excess depreciation", cf Note 8. i translated t fiscal year.cnd rates, with the exception of 4 shareholders' equity which has been translated at the original exchange rates.This method results in an exchange differen-Jan 1,1988 Jan 1,1987 ce in the balance sheet which is reported along with the non. -Dec 31,1988 -Dec 31,1987 6 l Planned Book dep. Planned Boolc dep. L restricted reserves for the group. deprec. reciation deprec-reclation lation .lation Receivables of the Swedish companies in foreign currencies are valui:d at the lower of the exchange rates on the date of - The Group acquisition or fiscal year-end. Liabilities are valued at the ' Participations in gas = and oil wells 72-72 20 20 higher of the exchange rates on the date on which they were ' Patents 86 86 81 81 incurred or at fiscal year end rates. Goodwill 702-702' 1437 1437 l In order to enable comparisons between the years to be Development costs made, some figures in the consolidated balance sheet have brought forward 200 200 I been changed for 1987. Machinery and equipment '15 971 19 248 17 297 18 794 . Fuel elements 9 377 9 377' 8 150 8 150 l Note 1 - OperatingIncome Buildings - 3412 2 372 3 496 2 385 Land improvements 22 21 64 21 Group Income by company / group of companies after Scrapping -18 -1 M3 chmmation ofintra group sales. Jan 1,1988 Jan 1,1987 29 842 30 545 -Dec 31,1988 -Dec 31,1987 ' Parent company 286 481 277 144 D fference between Alnor group 100 713 100 413 book depreciation District Heating Engineering AB 10 256-7 918 and planned l -1300 L Metal Process Control group 23 638 ~ 20101 depreciation. 2 218 l Studsvik FireScal AB -10401 l Studsvik Environmental 32 060 32 060 29 245 29 245 Consultants AB 13 889 12 022 Svensk Drivmedelsteknik AB 2 526 4 289 ' Studsvik Projektadministration AB 0 658 AE Projekt AB 18 291 ~ 0 Parent company Scandenergy AB 12446 Development costs Studsvik S A 4 765 4 571 brought forward - 200 200 Studsvikof AmericaInc 7 722 9463 Machinery and Studsvik JaE*" I364 6 327 eqmpment 1I506 14 650 12 605 14 335 - Fuel elements 9 377 9 377 8 150 8 150 Buildings 3 412 2 372 - 3 496 2 385, 469 645 465 753 Land improvements 22 21' 64 21 t Scrapping. -18 -1M3 Parent company income, per geographical market: 24 517 24 315 Jan 1,1988 Jan 1,1987 {- -Dec 31,1988 -Dec 31,1987 Difference between Sweden, excl govt agencies 158 503-151 244 book depreciation Sweden, govt agencies 67 625 79 399 and planned 83 998-56 323 deprecia; ion 2 085 -1 067 Exports. a. c s

le 1 Di o 1 L? I { 'i Note 3 Extraordinary income and expenses Note 6 Parent company shareholdings and 5 participations in subsidiaries Studsvik AB has been granted government support to finance the modernization of its waste facilities, nis subsidy, Percent. Nominal Book i approved by the Swedish parliament, amounts to SEK 178 age value value million and is in the form of a provisienal interest. free loan Shares Number holding thousands SEK 000 which will be written off at the rate at which the plant is AE Projekt AB 500 100 SEK 50 50 written down in the accounts. De government must approve Alnor AB 17 000 100 17 000 18 082 this write-off every year. This annual report has been prepa, District 1,leating red on the assumption that the government will write off the Engmeenng AB $00 100 50 3 595 amount of SEK 12 799 thousand. MPC, Metal Process Control AB 10 000 100 ,,_1 000 1 000 During 1988 the company obtained an unuJitional share. Studsvik Environmental 4 holder's contribution of SEK 40000 thousand. Consultants AB 10 000 100 1000 1508 Swedish Motor Fuel The total amount of extraordinary income and expenses for Technology AB 10 000 100 1000 0 h 1988 is as follows. Studsvik Projekt. administration AB 500 100 50 50 Group AB Feros Patenter 500 100 50 50 Extraordinary income AB Atomenergi 500 100 50 50 Government grant for plant expenses 12 799 Studsvik S A 5 000 100 FRF $00 '489 9 Unconditional shareholder's contribution 40 000 Studsvik Japan Ltd 9 999 99.99 JPY 9 999 373 Studsvik of America Inc 10 - 100 USD 1 4 52 799 Extraordinary expenses 25 251 Write down of new facilities 12 799 Participations Disposal of Swedish Motor Sunstore KB 85 SEK 127 127 Fuel Technology AB 569 Sale of subsidiary 375 25 378 13 743 Parent company Note 7 other shares and participations Extraordinary income Government subsidy for plant expenses 12 799 Parent company holding Unconditional shareholder's contribution 40 000 Percent. Nominal Book Group contribution received 2 996 age talue value Shares. Number holding thousands SEK 000 i 55 795 Stensand Special-Extraordinary expenses serviceforetaget AB - 4 000 33.3 SEK' 400 1500 0 Group contribution rendered Mellantnvest AB 1250 2.5 : 125 150 Studsvik SA 1846 SvecoNuclear AB 420 14 42 42 Write down of new facilities 12 799 SFC Engineering AB 250 50 25 . Write down of shares 1275 Pacific Nuclear SystemsInc 275 326 6.5 USD 3 13 126 15 920 Solmecs e Corporation NV 288. 3.8 NLG 3 576' i S:andenergy AB 35 7.0 SEK 3 3 Participations Note 4 Inventory valuation. Participations in tenant-i l owners societics 62 ' Inventories are valued at the lower of cost or market, i.e at the lower of acquisition cost or production cost, or at real 15 459 value in accordance with the first.in first out principle l l 1 (FIFO). Other group holdings N PKbanken 200 0 SEK' 5 22 Note 5 El Energi Work in progress Ek gruppen AB 400 20 SEK 40 40 Abo telefonverk 11 FIM 4 5 For fixed price assignments, work in progress is valued at the Ekokem Oy 1 FIM 2 3 lower of acquisition cost and real value. Only direct costs are . National Bonds Japan h included in the acquisition cost. bonds 16 Tenancy rights 23 j Work in progress for current account assignments is valued at zero. 15 568

Note 8 Fixed assets 1

Patents, goodwill, development cosu brought forward, machinery and equipment, fuel elements for the R2 reactor, j buildings, land and other real estate are reported on the-- balance sheet at acquisition cost minus accumulated planned depreciation. Accumulated excess depreciation is reported - among untaxed reserves. The materials testing reactor, R2,is f being converted from operation with high enriched uranium to low enriched uranium fuel. In connection with this, deve-lopment work on processes, core physics etc is being carried out. During 1988, SEK 1.0 million was capitalized. 'the costs are being written off over a five year period. Acc.' Planned Acc. Acc. Planned Acc. Acqul. planned rest. excess de, e- ( sition depre. dual Acquis-planned residual exceas v , Itlon deprec. . value deprec. value clation - valoe clation cost lation plan lation Parent company Group - Dec 31,1988 Dec 31,1988 i Patents 6 814 ~ 6 699 115 brought forward 998 200 798 brought forward - 998 200 798 - (1 Goodwill 12 529 9 469 3 060 i Development costs Development costs Machinery and equipmenj 269 978 213 191 56787 20 128 equipment - 229 517 186 073 43 444-19 507 l Machinery and Fuel elemenis for the R2 53 240 38 392 14 848 for the R2 53 240 38 392 14 848-Fuel elements Buildings 200 142 166444 33 698 -3 832 Buildings 200142 166 444 ~ 33 698 -3 832 Land and land improvements 22 120 15 557 6 563 3 539 improvements 22 120 15 557 6 563 3 539 Land and land 565 821 449 952 115 869 19 835 506 017 '406 666 99 351' 19 214 1 Parent company - Group Dec 31,1987 ' Dec 31,1987 Pawnu 6 486 6 303 183 Goodwill 12 212 8 655 3 557 Machinery and l-equipment 254 687 196 523 58 164 16 869 equipment 219 684 174 847 44 837-16 381 Machinery and h. Fuelelements for the R2 '52 797 29 015 23 782 for theR2 52 797 29 015 23 782 1 Fuelelements. l-Buitdings 200 337 163 227 37 110 -2 792 Buildings 200 337 163 227 37 110 -2 792 Land andland imptovements 22 120 15 535 6 585 3 540 improvements 22 120 15 535. 6 585 3 540 ! Land and land I $48 639 419 258 129 381 17 617 494 938 382 624 112 314 17 129 -i I I ,r Tax assessment values for buildings i and land in Sweden owned by ) the group and parent company Dec 31,1988 Dec 31,1987 l l: l, l 1 85 344 80 344 1 \\ Buildings Land and land improvements 7 407 7407 92 751 87 751 '

.6 k 4 - Note 9. Other long term liabilities Note 12 Average number of employees, salaries b Dec 31,1988 Dec 31, i987 Group Parent company leans in Swedish currency 24 676 38 035 Average number of employees Loans in foreign currency, Jan 1,1988 Jan 1,1987 USD-19 865 19 865 -Dec 31,1988 -Dec 31,1987 Sweden 650 722 44 541 57 900 Finland 83 102 West Germany 2 2 < France 5 5. USA 103-109 Japan ,4 5 ci Total 847 '945 . Salaries and remuneration Jan 1,1988 Jan 1,1987 ~ -Dec 31,1988 -Dec 31,1987 Board Board Note 10 Suretics and other contingent liabilities hlan.Dir. Other hlan.Dir. Other Dep.51an. Dep.51an. Grants along with interest received from the National Board Dir.

Dir, for Technical Development (S'IU) and the National Energy.

Sweden 2 857 117 197 2 653 118 947-Administration are entered here. Finland 548 12 928. 414 13 330 West Germany 1 765 157 oS4 If the company receives licensing revenues or suchlike for France 339 433 -352 522 products financed by the grants, the amounts shown may USA 3589 19 483 2 616 19 493 have to be repaid partly or in full. Japan 574 1 570 559 1328 Each product has been individually assessed with regard to Total 7 907 -152 376 6 761-154 283 future income. Contingent liaoilities have been calculated on the basis of this assessment and valid contractual terms concerning the grants.- Parent company - 1 Average number of employees Jan 1,1988 . Jan 1,1987 l -Dec 31,1988 -Dec 31,1987 Total 561 606 -Salaries and remuneration - i Note 11 Return on capital employed for the group Jan I,1988 Jan 1,1987 -Dec 31,1988 -Dec 31,1987 Board . Board - Jan 1,1988 Jan1,1987 'h1an.Dir Other hfan.Dir. . Other l ~ 6 -Dec 31,1988 -Dec 31,1987 Dep.hten. Dep.51an. Operating income after Dir. Dir. l . depreciation -11 971 -24 190 i Total 1667 103 256' 1365 102 423 Financial income 5 732 3 365 L -6 239 -20 825 Note 13 Profit brought forward Total assets 335 580 402 177 less interest. free Loss brought forward at Dec 31,1987 5 559 "I operating liabilities -81 378 -146 282 Profit 1987 20404 Total working capital - 254 202 255 895 14 845 II. Foreign exchange difference arising Average during the year 255 048 269 784 from translation ofincome statements e and balance sheets of subsidiaries Return on capital employed -2.4 % -7.7 % outside Sweden ~ 45 b ' The interest free operating liabilities stated above consist of Effect of sale 50 subsidiary 85 ' advances received from customers and accounts . payable. Profit carried forward at Dec 31,1988 14 975 + -

g-7 1- 'Ihe non restricted equity of the group amounts to SEK 39.4 million. No appropriation to a 1 restricted reserve is required '!he Board of Directors and the Managing Director propose that the i retained profit of the parent company, disposable by the Armual General Meeting, . SEK 43 990 314: 67 be carried forward. i Nykoping, April 25,1989 HANS STAHLE d TOR RAGNAR GERHOLM KAREN GOTT RUNEIIAKANSSON

4D KJELL JANSSON LENNART PETTERSSON ERIK SVENSSON a

ROLF ANGFORS : 'INGVAR WlVSTAD t.., -i K/ELLliAKANSSON Managing Director Auditors' Report for Studsvik Aktiebolag We have examined the annual report, the consolidated financial statements, the accounting records and the administration by the Board of Directors and he ManagingDirector for 1988. t 'Ihe examination was carried out in accordance with generally accepted auditing standards. The annual report has been prepared in accordance with the Swedish Companies Act. ] Parent company i-i h ' that the income statement and balance sheet be adopted - l1' We recommend - that the unappropriated camings be dealt with in accordance with the proposal in

theReport of the Board of Directors f

that the members of the Board of Directors and the Managing Director be discharged frorn

-{

- liability for the fiscal year. Group L The consolidated financial statements have been prepared in accordance with the Swedish Com .t We recommend - l that the consolidated income statement and balance sheet be adopted. April 26,1989 Ohrlings Resisionsbyta AB 1 Robert Barnden Evy Jakobsson Authorized public o Authorized public accountant I accountant \\ k ') J. w

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t Th@ Studsvik Group' C Group Management 3 Kjell Hakansson Group Chief Executive Officer ( President Studsvik AB J l ^ F Group Staff International Service 3 ' Controuer Studsvik of Amerka lac Finance Studsvik Japaa Ltd Business & Personnel Development ( Studsvik SA, France J i ( L Market Communkation j r Group R & D 3 Program Control ' ~~ ( Technkal. Scientific Council J .c Divisions Studsvik Energy Alnor AB BoJanzon' Rolf Tedestedt , Head of Division Head of Division. I Systems and Distribution Personnel Dosimetry. I Thermal Processes I Radiation Monitoring Applied Technology Air Measurement . Materials Technology i Alnor Oy, Finland ~ District Heating Engineering AB Ainor Inc, USA 2 Studsvik Environmental Consultants AB 2 . Ainor Nuclear Corp, USA, Ainor lastrument Co, USA AinorInstrument AB, Sweden StudSvik Nuclear Tche Kivikas MPC AB-Head of Division Tony Lyons l Head of Division Sa6y and System Analysis l b :nstrumentSystems b MetallurgicIndustry uel Techuology I ( Power Plant Services m MPC(US)Inc, USA Radiation Applications I.fJ MPC GmbH,' West Germany Service [g Straiegicdusinessunits df I Wholly ow1)ed c tr panies - Estate Management info Production Studsvik Library urc asing a trom January 1, N 3 Accounting Services Personnel Administrative Services 8 Data Services Safeguard Transport and Warehousing glp33gggs,g s (. +

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-m Advancing Nuclear Technology C C r ' p.[*f f,pii .d[. ' ' h @kt -Q.0N / Oser the past two decades Studsvik has gradually j )^A. 6 changed from a national R&D company in nuclear 'T , 9" 5. " p,,7, -i' energy to a commercial multinational group of g, [;;p (,['K3 !^ companies which offers highly qualified sersiees - t g (g g. vp and products in the areas of energy and environ-4.;:t, )ya p,g a w' ?:f.b.

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,.a ' .i mental technology. '?~ Studsvik Nuclear, the major division in the Studs- ' i. i- .A~ sik Group, has been particularly successful in 9 i T FO A '.h. ' - 'I.. '. 4 ).. deseloping produet offerings to fulfil customer i ..? ,6.-. !" a ' based on Studsvik Nuclear's high competence,long .i ~ y,'O.P needs in market. oriented niches. This transition is

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~ %%.Ng} ' ( .... ?i";. } 4, %>.y ;g3 a~ experience, deseloped techniques and modernized d 1y f Mp @.q, t. Studsvik Nuclear is organized into the following .? .. '...$h, y

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w N e Fuel Technology '[k ' ' l '..Y < h u i l e J. ^: e instrument Systems =- e Momsonny Systems fs i Q(g % m, Q;.p n 9_A. e Mer Plant Services .. f ~7l l. hf e Safety and System Analysis

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[; y '. ' l.. ,C J. _ y l p.s ; e Radiation Appitcatwns 'y'k-u.'% ]e ]l, ':j'E j;if, Qf;. ~ Sfir,@g.f' g;, 44 0 f.a f p. m.R. We rely to a large esient on our home market w hich ..)y yh. g has the world's largest nuclear power program in . g-QQpk 6' p-L - T t..' ' J kW per inhabitant, g ' ' %;' k., - c o. J 4 'g Mgp

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Howeser, an increasing share of our sales is made 1,, i f~ - ?z,<49.. m outside Sweden and several of our products are jJ finding their way to the non-nuclear market. For several years we have had of fices in the USA, O*$ ? /[Y }, k.f,..JE.q.f Japan and France. We also work through agents or

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~ ~- ~g Since the 1M0s our Neoctor R2 has been used for fuel toseng, e Today, exports account for nearly 40 % of Studsvik tesong mmdopingdiscon,mm Nuclear's turnover. radionuende production end tmic reseerd.

k. i Improved FuelEconomyand Safety .:'yx,.w y W Ly am;:3 y Sympw.~ p .. Q y 4 sq... .. nm v 1 w ' # AA /k4hy.O . 7N ' S,~-[.l, l' q5 i f. v. k k i. a a.. 4 s, ",'y.m 3 r p &g&. Y .' hy i ;;d f:W %*h g. s :[N;.f N. }yl - f W' yh; .3%

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s t in the Hages teoronary. W rods and W aseeneses m suNected to nom Our Lnow how and experiencein FuelTechnology destructnmarninatw;n. Destructiw posunedistion inastigations m aise is a result of the leading role Studsvik has played pertonned. in developing the S,wedish nuclear power program, and of our long standing relationship with the major fuel manufacturers and nuclear power utilities in the USA, Japan and Europe. Our sers ices, aimed at improsed fuel economy and increased safety of nuclear nower plants, include: LV ' % ly - Q - -W. Mg gf ? 'M f'qh'n e Fuelirraduatron testing andfuelperformance h n.yh,.[ }- g.,;.',' ..O s ~ i e.tannnanon s conductedin the.iO Af Wmatenals -h" vt.& f/)' * ^. . ~. 8$ testing reactor RL and the Hot.Celllabora- ..- Jj%.: ' ~ ' ~ ~ V l b.^ v l l tory b )N.Y}^ , nf "'R e in. Core Fuel Afanagement ilCFAff codes and .s methods for corefollow, long-term planning k WR 'N + '~ andoperationalplanmngfor both boihng water r [s ~? 2 1 f, iky gj ; /- and pressurs:ed water reactors. Corrosion studies of spent fuel waste fonns y F J. ; e carried out underfinal repository conditions. i ' ' fi + *y y s (.x y g. };- . :. i I~ -[/ in fuel performance testing, Studsvik Nuclear is U.' W especially well known for the series of multi- ,e jl. Q p national RAM P projects addressing and solving t he 74 ( ' E b ?,i ? r" g .jo Se h J - '?E 4: ; ( I. Met-Clad Interaction problem. ' W b <lW 1 5 ~ . EM M s- % .'~ Wer tests carried out in the R2 reactor and the f .~ ; ' - ".T Ilot Celll_aboratoryinclude customized LWR fuel ( j gh[3 if .. O k testing and esamination undertaken for domestic ( ip 99 ' h m.m and forei<,n customers and studies of HTR fuel. t ~ , [1 7 4 a N':' k.{j F$.g[h M f.9T,% f@Q[hi..p[i., d' [ $ In 1985. after nearly 25 years of operation, the R2 t. j ' VY reactor was equipped with a new reactor vessel and A L R h & -Q lM a mo6fied core. The R2 reactor now offers a larger ~.0 .3 variciy of test conditions, and will ensure the '..D y.? k %# 's W3.P.' $.]. W)M'.,%' - ..c 4 9' VeTb asailabilit y of neutron irradiation capacity for fuel 7;N.O V ' g, % d { f .1: [. f c [; $q ig; 4 ': Qp' oQf-

r testing and other purposes wellinto the future.

N' I The Studsvik ICFM package comprising the well-

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a f' ( "..r3 :. ,..s . :' o .(- .4 ; + ..w Tough demands on the safe and teliable operation The Studevik Compact Simulator a&h a new dimensson no operator tra - of 6he Swedish nuclear power plants have set the and b en innwative tool to impron training emeierg and enhanco ..iimity. a thr,e. plant simulator has ten del;* rec io the Toem Tre standards for the development of high performance Center. operated ty the Apan AtorrJe Poner Company. j products by Instrument Systems. Our key product is the Studsvik Compact Simulator which has become an important toolin the training of power plant personnel. Studsvik has worked in the deld of simulation since the fifties, and is now one of the leading manu-fact urers of customized real time process simulators for BWRs, PWRs and fossil fuel plants. Our Compact Simulator is currently being used in l Sweden, the USA, Switzerland, South Korea and j Japan, thereby contributing to enhanced avail-ability of the power plants. The simulator can also be adapted to process industry applications. gj, The Studsvik Compact Simulator is used as: .3 .: ?..,m.,;,gs or?D WS P ?, J. Y hN I ' lp? .Tpc .-~'l ?L .\\ e a toolfor enhancing process understanding y ' :l,) *- Q ;...; Q{ Q W $ d h %i ' L.ggy a }. l .+ f(.{?** h b e a meansfor procedure and accident scenario

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e a test bedfor er atualmg new operatoraids in the [ j w>$ control room. e x { M*ece R V: ' ' y p'f M.M*.E' f % y,a 7. >., 3..! . p Other instrument System services and nroducts ^ Ti M W. A y : ?P.% e <f$ ~ l based on advanced noise analysis techniques, are for example: h.4 h.D % ',l. 4. l c + sw ?m*

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I i e customizedearly warning systems. Compact simulator graphe display for Tsurugs t at the Toliai Dainmg Ca Apen.

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.y 'g.. .nq._. The Studsvik Nuclear systems for in core neutron . ['; %f [..;,[f. x, FFf',,J. ',, f.1

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i .. ~ " 4 i 4 .h. -%f. '] *.. j f * ^ + -0.l 'l+ - sa in coo,. On with customers. Two systems for in core monitoring: ~.. N[ p ~ 'i ~ e source and Interrnedoote Range Afonnoring 1 mRAft and t, y ,y e %.er Range Alonavring # rat > J h.1,f',, l :., ' l %":4 - l. [ ; I . N make it pcssible to coser the w holt range of opera-

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1 C t d.5 h: a,h..- p.l,gg.3g# l [.c ' n tion frorn zero to full pow.r. %,]., g .( t SIRM, knov n as i;.e start up sysm, normally Ug: fit 4. ' %,.. #8Wi R T.f p. 7,;+ 3 gNK - +- measu: s upio 10 'e of full power. It also servu as ?.. 1 ?- U. ~ h Q j [" A I 'g 1 --s e cL up for the PRM system. A single fission f [ x fj.: nber is med as the detector with a compact c..

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y IM ro of full power, uses thi Studsvik Self Powered M * '. f >.

.,,y - k @r ; ? ;'.; t;4",4 e > drise mechanism for insertion / withdrawal. pt. l . ;. F. ~. + g-. The PRM sysitm, for flus measurements up to 6 o. rYi . E h.Ts! ' ',g,t f.' 7 .# ' 4- ? hron Detector (SPND). ..... h ' 49k..,[m.O,m . +: 1;aj ,g,.. 4. . ~ 4'".,.. _ k j e, The SPNDs are also delivered a; a separate product . 3'y E

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t : '~ ~ go k: ', i [#3 ++ l lifetime, oser ten years uhich has been serified in f/,. p ' h'. d['h,f .iC l power reaetor installations. ~'I The surseillance monitoring systems are designed I to measure radioactivity in the stack and water $.gh p, '.M,}(. dg' [h. hl',.

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g.1 - - s ge accident situations. Such systems are installed in N N ' Et.;O 9 4 g ' M A' ~ f:'a * - Y'. %6-4 r.uclear power plants and power stations in Sweden, ~ .',id " " P .. #e Finland and Belgium. All monitoring systems fulfil the latest US.; tan-Instahtion :rl $1RM in the Forsmart Nuclear power plant. In many artes dards and the requirements set up by Ihe USNRC. stuomgeg,7 %e m. hoi,,,ocess trom the concept ana deogn stap up to the knished product and instehtien. y g ? J TD ~ ;

Expanding Nuclear Serybes ,[ [ :. ~ 5 % Q [.'! ' O- ['- } {J, ' ~ "c ^ = y }. . ;.r (- rhM y. a, 'k a p"', . g ' 't .n - w .h *f ? - i y yg, j,. g_ T ,,43.s. N. yM i.~, ' f l [p +,, it.f,$.. ]'4 ' p 1,, '. _.; i. f -lj '; k,Y -,& 5 ' .,,,f ' ' ^ *

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l,';,,,.g, g(,),_ ^ V:f.m 1l. the Le> areas being: 3 g:L=. yk,hn - s w.+ .. g 7(* Cjg. y s yhv ,r_. y ,J, g; :.3. 7, . h. annr our };. ,7

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of a large Studsvik incine..on system in Oak Ridre, USA Activities in the waste area alsoinclude t, 1 jj descloping new processes and characteriiing waste '4 . - + f "..g . ( !,M ' i'f[hln.2 .K p r-l products for final disposal. G. i d' Our work in the fields of chemistry and materials, c. .7 I w.. .0 " ' ' l i ' ' y% q y ( >.% ' !}qlf y., carried out in close cooperation with the nuclear f,,. .- a 'o,, ' g. utilities, is supported by our radiologicallabora-s J f....h k g ! Iories, irradiation facilit) and hot cells. ,1

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The materials work includes investigation of -.. Y s '> J i _. ~.g g [// ;~..p. ' g h ( r.=. n, 'p (" corrosion resistance of structural materials. ,. -f}j (fig. 4 irradiation effects on the mechanical properties and ,g i sg,7 h'c '.. l, 3 e, ?- x- i We also develop and mar ket techrir togy in the areas o ^ ' of ch;mical decontamination and decommis-wenngFommencin Powerplanthepumung eopeeste g

sioning, conder.ute poushlng system.

i ' improving Nuclear Safety and Environmental Protection jf 4 Safety and System Analysis continues St dsvik's long tradition of being a center for development and assessment of nuelcar safety and environ-e mental protection providir,,, a complete range of ? competence in l e $gfety enolysu ~ Thermot hydraulic onelysis - Probabilistic sqfel) otsrssment -- Severr accor' t onelysts O ~ e Ensoronmental umpact assessment l - Dapersion andtronwortofpollutants en the utmosphere, hydrospherr, grasphere end biosphere - Rudoorcology - Rodsorion dose ossessment l J A management soRiere peciege, AIRPAC, has tieen developedlar checung oir quaNty in esel ume k is suitable es an emergency response asedsung sy-Fo. oser 15 years thelarge scale Marviken esperi, stem for nut'

  • peper plants and ior environmentalimpact aesesinent in vete n,e a s et ineuer,s end ier wind she monitoring et anports ments dominated our safety activities. Recently the

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.e, t 4 by filtration esperiments at Studssik provided cg D'- 14$ it.Y.Q j,f,; important contributiens to t he basis for decisions T# to install t he H l.TR A or M ulti Vent uri Sci ubber S). W,) "h g ', 'M~ A A*,' t Mg9 - A siem equipment for fihered containment senting. "_h4y% N h T.* . 4p5 Such equipment is now installed at all the twelve i Mi 4 % /[.y.y nuclear power plants in Sweden f y.h - The esperts of the environmental sersites group h ..I 4 W 9.4 ' d.~ W f-hase for man) > cars prosided SKB with radiation J ? 7" 3 : ' d g 4.;l "'t g.. *g(, 1:.11 i I dose calculanons for the waste and spent fuel M. 9

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.y l repositories by use uIihe Studsvil codes BIOpAT li lj '{.f' i' *m '. 4 .,l & 4 and PRISM. They base been validated within the ~n .3 ~ gd ' international intercomparison study DIOMOVS E -" ir ; dj' u A j..,2kl f Q YIsrj - '.jpR : wn under the sponsorship of the Swedish Institute of -iation protection-M 8cou8hc **undial equipnet - $% for AINn opereuen at the Forsmart nucien power pient. 'l' h b e I k. i . h k k* b I-Neutrons for a Wide Range of Applications Radiation Applications caters to a market mainly - ((f-ilJA 4 / ".f A f.t .C dp rf outside the nuclear power sector. Our products and 'v ees are primarily based on irradiation in the R2 .,g { .f.,, We provide: { (k ' ' ).. f N 'hJ 4

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Studsvik Nucear 1 1990-03-09 \\myndigh\\le/UH w.. ca .u u+.,......<. Kurt Sk61d US Nuclear Regulatory Commission Medical, Academic, and commercial Use Safety Branch h [' Attn Ms Cynthia G Jones { II, $*i pl Mall Stop OWFN-6H3 i 8' Washington, DC 20555 [ USA i (4 Dear Cynthia Enclosed are the additions and corrections to the + license. application which we agreed to over the phone. For your convenienc_e one copy is marked where changes have been made. [ When rewriting Section 3'in. Appendix C to. include i the general formula for the calculation of gamma dose at 4 cm, I discovered that the calculation was not correct. The correct results are as shown on enclosed pages C-4 and C-5 and in the summary on page 11.. Fortunately the correct doses are even lower than those originally given, but the mistake is embarassing just the same. The changes on page 4 have been made such that the information given in the application for possession license are still valid, i.e. 1.000.000 cts at 25 Bq/g. I hope this will be i satisfactory to you. Thank you for your constructive: criticism of the application, and I will look forward to talking to you early next week. Best regards /ZY sfr g Kurt Sk61d 3 6 -& Q -<,r 4' 6-6 0 -s' - /wO p 6-M n y s-ac $3/9/so p4 6 '9

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ve o, 1990-02-20 \\ ext \\le/UH woe.w e, in ese vw :. e, vw i Kurt Sk61d Ms Cynthia G Jones US Nuclear Regulatory Commission Medical, Academic and Commercial l Use I safety Branch i Mail Stop OWTN-6H3 l Washington, DC 20555 Usk }& 8/ go \\ 9t Dear cynthia f i Enclosed are the revised pages for'the license application. In addition to the pages faxed to i you last Friday, page.11, where 4 greak gamma was missing (second line below Table 3) is also on-closed. Yours sincerely hl Kurt Sk61d EQG i Revised pages for license application (3 copies each) 1 ^* %ff n ava%s & nu m ~ w l ' u)b M: // f $'"f J-u Jg i 6-/A $//h/ f "hw g.y \\ StudsA Nuclear er en dMeion i Studed As - Studed Nuclear is e dMelon of Studed As hk poemereee Posw eseees tensen-Phone fease feeeeen sa'*se,* es**9 m**,u Poe M Posw uce d k Studsvik Nuclear j S 61182 NYK0 PING Natjj55:2jQM 64013 Not 0155 63qM Sweden int +4615521000 studs s Int + 4615563000 : 330 0670-354892 2 ~.....

,w w w e S M .. J i .-u .,MLRt u-01 ..MS9WM Kurt sk61d j US Nuclear Regulatory Commission Medical, Academic, and commercial Use Safety Branch Attn Mr Michael Lamastra Mail Stop OWFN-6H3 ) Washington, DC 20555 USA Dear Sir l We hereby submit an application for a License Pursuant'to 10CFR32.11 to Distribute Neutron-Irradiated Gems to Persons Exempt from Licensing. As explained in the appli-cation the gens will be irradiated at the reactor'facili-ties at Studsvik Nuclear in Sweden and shipped to Alnor F Instrument Company, Skokie, Illinoik for release to un- ) licensed persons. I t An application for a Possession License in accordance with the provisions of 10CFR110.27(a)(3) is submitted to the' Illinois Department of Nuclear Safety, Springfield, Illinois. The requested possession limit is as given.in ( Item B.1.1 of the application for a Distribution License, ~ a copy of which is enclosed with the application for a Possession License. A significant portion of the Quality Assurance; Program will be carried out at the facilities of Studsvik Nuclear in Sweden. We will, on request,.make the equipment and the procedures which are described in the application and i which are residing at Studsvik, available for review by t NRC. Sincerely r h l ll";l:5 T61ve Kivikas Rolf Tedestedt i Sr Vice President Sr Vice President-Studsvik Nuclear Studsvik Instruments Attachments: 1. License Application (3 copies)

2. Check payable to US Nuclear Regulatory Commission in the amount of License Fee g-g g
3. Copy of Application for Possession License l

to the Illinois ~ Department of' Nuclear g nj,L31 1 fn_ L. Safety { fII fIOIh & h o L 2 4.. vM v. v %w,.u- + i..u-I Studsvik A8' -{ S 61182 NYK0 PING Na L 01L5-2_1,q09 64013 (fat _,_015533Q_09 g g' {*). $weden Int +4615521000 studs : int +4615563000 330-0670 ' 354892 2

EHEe]n ree,, se, Mr. Dan Rice Radioactove Materials Section Illinois Department of Nuclear Safety 1035 Outer Park Drive Springfield, IL 62704 Reft IL-01356-01 Dear Mr. Ricet We request that you amend our Radioactive Materials License to include the following: 1. We request possession of elements atomic numbers 1-94 in the form of irradiated gemstones. 2. The gemstones will be irradiated at our facility in Sweden and shipped to our facility in Skokie, IL-for scanning and distribution. 3. An application (coe enclosed) for a distribution license has been submitted to the NRC in Washington, DC. l The material will be possessed in accordance with the application (enclosed) for the scanning and distribution license. \\ This amendment application is being submitted after a conversa-l tion with you and Mr. Ronald D. Edwards, our Consulting Physicist. Please forward a notice as to which fee category our request falls into and what amount the fee will be. Thank you for your cooperation. Should you have any questions, we authorize Mr. Edwards to answer your questions or provide j additional information. Sincerely, ALNOR INSTRUMENT,. i LCk f{ Albert A. Aspito Executive Vich resident AAA/bp Enclosures l C: P. Haake T. Kivikas, Studsvik Nuclear M. Ricciardi K. Skold, Studsvik Nuclear ALNoR INSTRUMENT COMPANY Telephone (700) 677 3500 l 7555 NWth un@r Anne Telefax (7M) M7 3539 - Skokie, tninois M077 i I { [A/ O ? /)9 T o l ^-

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APPENDIX C In this Appendix, the annual radiation dose to wearer of an l irradiated gemstone is calculated as requested in Items E.2 and E.3.in the NRC document "Information Needed From an-Importer to support Application for License Pursuant to 10CFR32.11 to Distri-i bute Neutron-Irradiated Gems to Persons Exempt from Licensing j (February 25, 1988)". i L s t F C-1 l L l

I Using a worst case scenario, we have calculated the radiation dose during the first year-of wear for a gemstone of weight 5 g (25 ct) which.is worn continously (24 hourr, per day, 365 days per. year). The calculations are made for a stone at the maximum con-centration.of radioactivity as identified in Item C.2.e and with a. composition of radionuclides as given in Item D.2.b in Appendix B e of the present application. Two different geometries are considered, namely gemstone at contact with the skin gemstone at 4 cm above the skin and gamma and beta doses are calculated for both cases. 1. Beta dose at contact II The dose-rate is calculated from t b = 0.29 A(Bq/g) 5(McV) 4Gy/h The values for A, the specific activity, and 5, mean beta energy for the nuclidos included in the calculation, are listed in Table C1. , Table C1 5) Fraction A NRC-limit f 2 I Nuclide Tl (McV) (Bq/g) (Bq/g) l Mn-54 312.5 d none 1813 3.6 37 Sc-46 83.8 d 0.112 1214 2.4-15 Ta-182 115.0 d 0.212 33110 7.0 15 Cs-134 2.06 y 0.163 1 0.2 3.3 Na-22 2.60 y 0.194 2.911.2 0.6 15 L Rb-86 18.7 d 0.668 26117 5.2 26 Zn-65 243.9 d 0.0069 3 0.6 37 l 1) Radioisotope Lab. Tech., 4th ed., R. A. Fairer 2)' Annals of the ICRP, Radionuclide Transformations, Publ. 38, Vol. 11-13, 1983 [ i C-2 a 4

L i Fraction in Table C1 is the relative contribution from a specific nuclide to the total activity (see Item D.2.a in Appendix B). The values for A in Table C1 represent the maximum allowed specific activity at time of release. The dose from a specific nuclide during the first year of wear is obtained from D = E (1 - e-At). A where t'= 365 d and A-= In2/Ti(d). The self-shielding of a 5 g stone is such that approximately 10 % of the radiation. emerges through the surface. The effective local doses are therefore -Table C2 Nuclide Dose (msv/ year 1) Sc-46 0.11 Ta-182 0.76 i Cs-134 0.03 Na-22 0.13 -Rb-86 0.33 i Zn-65' 0.003 The total beta dose in the first year is therefore 1.36 mSv or 136 mrom. After the first year only Na-22 gives any significant dose which is then less than 10 % of the first year dose. 4 2. Y-dose at contact 3 For a stone of diameter d (1.0 cm) and. density p(3.5 g/cm ) 3) the initial flux at the surface is 2 d= .d2 = 1.75 A 3q/cm - 4 d/2 3I Radiation Fields from Extended Sources, H.J. Moe,. Health Physics Society Meeting / Professional Enrichment Program, Pittsburgh, PA. June 1986. C-3 l-E I

~. g y is; 3-y i { ts t l d o 1) o 7 -The:dosn-rate is obta$ned'Irom .i 5 5 8.17 107 Y +r.: mSv/d-be d where r is-the nuclide-specific gamma. constant. The individual r doses in:the first year;are-calculated from-tho'dosc-rato as ' above'..The 'results' f or the Y-dose' at contact are summarized in m . Table C3. i i c. t Table'C3-i - f Nuclidei f(R cm /Nici.h) d(Bq/cm ) Dose (mSv/ycarl). i' t Mn-541 .' 4. 8 -6.3 0.62' .sc-46 10.9 4.2 0.'43._ Ta-182 6.8 12.3 1.01 4 Cs-134 8.7-0.4 0.09 1 - .Na-22 .31. 8 : 1 ".1 0.34e Rb-86 0.5: 9;1: O'.009. Zn-65 2.7 1.1. 0.06 ~ The total gamma.; dose in~.the;first year is.therefore 2.56lmsv l orL256.mrom. In successive; years, the gamma dose'is less!than 25 % 3 of the first year doso. 3;' LY-dose at 4'cmt ~ For'a. stone of radius r,-at a distance!a,.the initial flux-is ( -obtained from 2,- r )"1n Y[ ] F 2 d = A'0 '[2.ber - (b where b =-a + r is the. distance to the' center.of the stone and1A' and o are defined above. With-Alirom Tabic C1,' r f roin Table: C3 ar.d - ~ -D and D c'alculated as above we obtain the Y-dose-at 4 cm as shown a 'in Table c4. 'l t _g

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APPENDIX D Training and relevant experience of personnel responsible for the QA program at the. production f acility (Studsvik Nuclear, Sweden) and at the importers facility (Alnor Instrument company, Skokie, Illinois). r + i I i 4 4' i ( ) D-1 t l NA' f

~ i e l 1 1 Hamith-nhvales ) l The health-physics resources at studsvik Nuclear and at i A1nor Instrument Company will be available as needed for the gemstone irradiation and handling program. l OA-responsible i overall supervision of the. gemstone irradiation program will l be performed by Prof. Kurt Sk61d. r Responsible for the QA prgram at studsvik Nuclear will be Mr l Per Svensson and responsible for the QA program at Ainor i ' Instrument Cospany will be Dr Roger Dejus. Per Svenssos Personal: Age-58, married, no children, Swedish citizen. ( Mr Svensson has an engineering diploma fros'Orebro Tekniska in 1961 Gymnasium. He joined _Studsvik (then AB Atomenergi) and was for several years working on problems related to radiochesical analysis of fission products within the inter-national Dragon-project. In particular, he developed methods for radiation detection using HaI detector, proportional counters and GM detectors. Mr Svensson was then for a number of years' as group ' leader responsible for the analysis of fission gas release from reactor fuel elements for gas cooled power reactor which were, irradiated in the R2 reactor at Studsvik. Important tools for the analys program were NaI and Ge(Li) detectors. Mr Svensson is since 1982 responsible for the Neutron Acti-vation Analysis (NAA) J Laboratory at Studsvik Nuclear. In this capacity he has been involved in the development of ir-radiation facilities with well characterized neutron flux environment at the R2 reactor. He has also been responsible for the construction and operation of low-level counting f stations based on Ge(Li) and NaI detectors as well as for the i Installation and use of-various gamma analysis software packages. The resources of the NAA Laboratory are in the future mainly allocated to the gemstone irradiation program. k i D-2

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c. e i i Roger Dejus Personal Age 35, married, two children, Swedish citizen. 1 Dr Dejus has a Ph D. in physics from Link 6 ping University. J His thesis work includes neutron scattering studies in ] Condensed Matter Physics and studies of ionic transport in solide by i Radioactive Tracer techniques. Dr Dejus was responsible for In his neutron scattering work,ing of a triple-axis neutron the construction and commission spectrometer at the R2 reactor. His work on ionic transport phenomena includes construction and operation of a computer-controlled gamma scanner based on NaI detectors. From both of these areas of research, Dr Dejus has gained 3 extensive experience with low level radiation detection and with automated and computer controled radiation. detection equipment. Kurt Sk61d' Personal: Age 51, married, three children, Swedish citizen. { I Prof.-Sk61d has a Ph D. in physics from Uppsala University.- in 1961 where he was He joined Studsvik (then AB Atomenergi)in Condensed Matter i involved in neutron scattering studies t Physics. The neutron scattering program at Studsvik was transferred to the Swedish Natural Science'Research Council i in 1979 and in 1983 Sk61d was appointed a Research Council Professor in Neutron Scattering Physics. The same year he joined Studsvik as Director of Research in the Nuclear Division (now studsvik Nuclear) and remained in this position : until 1986 when he was appointed professor-in Materials Science and Neutron scattering at the Neutron Research Laboratory at Studsvik, which is a-department of Uppsala l University. Sk61d has continued-his work in the Nuclear Division (now Studsvik Nuclear) at Studsvik ne a consultant l until present. Sk61d was a Visiting Scientist at Argonne National Labora-l F tory, USA for over 2 years in 1967-1969 and has since held a l large number of short and long term appointments at Argonne l for a total of approximate 1y'6 years. i a q. s J D-3 w s t = -.-n-

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Sk61d's work has mostly involved neutron scattering studies in Condensed Matter Physics. Among na or achievements is the first neutron scattering study of 11 id He-3 (K Sk61d, c A Polissari, R Kleb and G Ostrowsk, Phys.' Rev. Letters 11 (1976) 842). This opriment was until then considered not - feasible due to the large absorption of neutrons in He-3 and was listed as a milestone contribution in the Brinkman Report (DOE Review Panel on Neutron Scattering, Oct. 1980). The determination of the inelastic scattering function for liquid Argon (K Sk61d, J M Rowe, G Ostrowski and P D Randolph, Phys. Rev. && (1972) 1107) was also-listed as a milestone contribution in the Brinkman report. l Other areas of research include the development of a. novelle technipe. for radioactive tracer dif fusion studies (R Dejus, K Sk61d and B Graneli, Solid State Ionies 1-(1980) 377) using l in Ritu activation of samples in the reactor and subsequent gamma scanning with a Na1 detector. Sk61d has also been involved in the construction of a fa-cility for thermal neutron microradiography at the R2-0 reactor at Studsvik (B Larsson, O Sornsuntisook, E Johansson, K Sk61d and M Fantini, 2nd World Conference on Neutron Radio-i graphy (1986)) and in other applied programs at the Studsvik l reactors. He is the coauthor of approximately 100 scientific 1 atid technical publications involving the use of neutrons in' basic and applied research and is the coeditor of a three-volume book on Neutron Scattering' (Neutron scattering: Parts A, B and C, in the Seriest: Methods in Experimental Physics, Academic Tress Inc (1986, 1987),. editors K Sk61d and D L Price). In his work Sk61d has gained extensive experience in low level radiation detection techniques and in materials ir-radiations in reactors. ll l i D-4}}