ML20056F738

Requests Commission Approval to Export SNM to Czech Republic

ML20056F738
Person / Time
Issue date:	08/20/1993
From:	Stoiber C NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-93-230, NUDOCS 9308300324
Download: ML20056F738 (18)

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(Notation Vote)

August 20, 1993 SECY-93-230 FOR:

The Commissioners FROM:

Carlton R. Stoiber, Director Office of International Programs

SUBJECT:

PROPOSED LICENSE TO EXP0RT SPECIAL NUCLEAR MATERIAL TO THE

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CZECH REPUBLIC (XSNM02749)

PURPOSE:

l To obtain Commission approval for the issuance of a license to Westinghouse l

Electric Corporation for the export of 1,265 kilograms of uranium, containing 10.2 kilograms of uranium-235 (enriched to a maximum of 0.8 percent), to the Czech Republic. The material is in the form of uranium dioxide pellets incorporated into two test fuel assemblies for hydraulic and mechanical tests by Skoda JS, Ltd. under a VVER fuel assembly development program.

l The application is being referred to the Commission in accordance with 10 CFR 5110.40(b)(5) as this is the initial export to the Czech Republic of special nuclear material for nuclear end use.

DISCUSSION:

On May 12, 1993, Westinghouse Electric Corporation filed an application for the export of 1,265 kilograms of uranium containing 10.2 kilograms of uranium-235 (enriched to a maximum of 0.8 percent) to the Czech Republic (Application at Attachment 1). The material is in the form of two test fuel assemblies and will be used in hydraulic and mechanical tests for a VVER fuel assembly development program. One dummy fuel assembly containing lead pellets is also included for test purposes.

Contact:

NOTE:

TO BE MADE PUBLICLY AVAILABLE Betty L. Wright, OIP/ESSC WHEN THE FINAL SRM IS MADE 504-2342 AVAILABLE

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o-The Commissioners 2

August 20, 1993_

DISCUSSION:

(continued)

In response to the NRC's request for views on the proposed export, the Executive Branch (Attachment 2) recommended that the license be issued and

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concluded that:

The proposed export to the Czech Republic would take place pursuant to I

the Agreement Between the Government of the United States of America and the Government of the Czech and Slovak Federal Republic on Cooperation in i

Peaceful Uses of Nuclear Energy which entered into force on February 13, 1992, as confirmed in a certificate from the Czech State Office for Nuclear Safety. The certificate confirms succession to the Agreement for Cooperation by the Czech Republic pursuant to Law No. 4/1993 of the Czech Parliament.

t The Czech Republic has adhered to the provisions of its Agreement for Cooperation with the United States.

The requirements of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 1978, have been met.

The proposed export will not be inimical to the common defense and security of the United States.

The Executive Branch response included a detailed analysis for the Czech Republic (see Attachment 2).

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

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CONCLUSION:

I The staff believes the current Executive Branch analysis provides an adequate basis for finding that the proposed export meets the applicable export licensing criteria of the Atomic Energy Act.

The staff concludes that all criteria required for the issuance of a license to Westinghouse Electric Corporation for the export of 1,265 kilograms of 0.8 percent enriched uranium are met. The Office of the Executive Director for Operations concurs.

The Office of the General Counsel has no legal objection.

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The Commissioners 3

August 20, 1993 i

i RECOMMENDATION:

That the Commission authorize the issuance of export license XSNM02749 to Westinghouse Electric Corporation.

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arlton R. Stoiber, Director Office of International Programs Attachments:

1.

5/12/93 Cover letter and Application from Westinghouse Electric Corporation 2.

8/6/93 DOS Letter FMcGoldrick to CRStoiber w/ enclosures Commissioners' comments or consent should be provided directly to the Office of the Secretary by COB Tuesday, September 7, 1993.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT Monday, August 30, 1993, with an infor-mation copy to the Office of the Secretary.

If the paper is of such a nature that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION:

Commissioners OGC OCAA OIG IP EDO SECY i

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co:w Nac.T u.a. wuCLEAn nt::utAToRT eouwissioN ap,povto ty cAo Yoe'Rsto APPLICATION FOR LICENSE TO EXPORT NUCLEAR MATERIAL AND EQUIPMENT (see tartrueDons on A versal

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UNIT USE o'm~ sovnemer sw ren at Two (2) test fuel asse=blies containing 1265 0.8 10.2 Kgs.

slightly enriched UO,, pellets.

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One dummy fuel assembly containing lead pellets (no uranium)

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25. ADDITIONAL INFORMATIOad /Lew eserve awardner ry/

At this time, we do not Australia. Accordingly, we hereby request authorization to export up to 1265 Kgs. U i

of Canadian origin material and 1265 Kgs U of Australian origin material under this licen!

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Mr. Ronald D. Hauber, Assistant Director II @ b b International Secudty, Exports and Material Safety Office ofInternational Programs i

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Subject:

Export Application

Dear Mr. Hauber:

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Please find enclosed a license application covering the proposed export to the Crech Republic of two slightly enriched nuclear fuel assemblies and one dummy fuel assembly containing lead pellets. These products are for hydraulic and mechanical tests for a VVER fuel assembly development program.

P Due to the near term shipment of these products (i.e., September 1,1993), it would be appreciated if the NRC and other U.S. Government Agencies could expedite the issuance of this license.

4 A check for $8000 is enclosed covering the fee for this application.

I Should you have any questions on this application, please contact the undersigned at (412) 374-3262.

Very truly yours, i

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Senior Ucense Administrator International Enclosures WEPf3119rtn293 i

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ATTACHMENT 2 i

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United States Department of State 1

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.v August 6, 1993 Mr. Carlton R. Stoiber Director, International Programs United States Nuclear Regulatory Commission Rockville, Maryland

Dear Mr. Stoiber:

I refer to the letter from your office dated May 21,1993, requesting the views of the Executive Branch as to whether issuance of an export license in accordance with the application hereinafter described meets the applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978:

NRC No. XSNM02749 -- Application by Westinghouse Electric Corporation for authorization to export to the Czech Republic 10.2 kilograms of U-235 in 1,265 kilograms of uranium enriched to a maximum of 0.8 percent in the form of uranium dioxide pellets incorporated into two test fuel assemblies for hydraulic and mechanical tests by Skoda JS Ltd. under a VVER fuel assembly development program. Also included for test purposes is one dummy fuel assembly contammg lead pellets.

The pro?osed export to the Czech Republic would take place pursuant to the-Agreement 3etween the Government of the United States of America and the Government of the Czech and Slovak Federal Republic on Cooperation in Peaceful Uses of Nuclear Energy which entered into force on February 13, 1992, as confirmed in a certificate from tbe Czech State Office for Nuclear Safety, a copy of which is enclosed. The certificate confirms succession to the Agreement for Cooperation by the Czech Republic pursuant to Law No. 4/1993 of the Czech Parjiament. The Czech Republic has adhered to the provisions ofits Agreement for Cooperation with the United States.

The Executive Branch has reviewed the application and concluded that the requirements of the Atomic Energy Act, as amended by the Nuclear Non-Proliferation Act of 1978, have been met and that the proposed export will not be inimical to the common defense and security of the United States. A detailed analysis for the Czech Republic is enclosed.

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

Sincerely, Y$ ' YV

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Enclosures:

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1. Assurance certificate

2. analysis 3

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es eseer paows o es a sacze,st e.,se *ez se 4e e-STATE OFNCE FOR NUOLEAR SAFETY DIRECTOR sweeha s. Peeeve a Tng. J&n 5evi1ee Prague, July 16. 1993 Ref, No 1989/2.3/92/Kl/E 4

I CONFIRMATION l

The state office for Nuclear Safety confirms that:

identified on the license of the material, as The transfer a) application of Westinghouse Electric Corporation, applicants reference WSH-93-119, dated May 12, 3993 (NRC Licensa No. XsNM02749; Docket No. 11004650) will be subject co all the terms and conditions of the Agreement between. the Government of the United Otates and the Government of the I

Republic on Cooperation in Peaceful Czech and Slovak Federal Uses of Nuclear

Energy, which entered into force on i

and its succession for Czech Republic has February 13, 1992 been confirmed by the Law No. 4 /1993 of the Parliament of Czech Republic; b)

The skoda JS Ltd. (Nuclear Machinery) is authorized by the state office for Nuclear safety to receive and possess the nuclear material.

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EXPORT LICENSE APPLICATION ANALYSIS CZECH REPUBLIC

1. Applicable Acreement for Cooperation The proposed export of nuclear material will be subject to the terms and conditions of the Agreement Between the Government of the United States of America and the Government of the Czech and Slovak Federal Republic (CSFR) on Cooperation in Peaceful Uses of Nuclear Energy which entered into force on February 13, 1992. The Czech Republic confirmed that it considers itself bound by that agreement by diplomatic note No.

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C.J.:85.276/93-MPO dated April 5,1993, reported by U.S. Embassy Prague telegram no. 3218 dated Apnl 9,1993, and by an assurance certificate dated Jul 16 encfosed.1993 from the State Office for Nuclear Safety, a copy of which is The State Office of Nuclear Safety certificate also confirms application of the Agreement to the currently proposed export.

The Czech Republic has adhered to all provisions of the Agreement.

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2. Extent to Which Ernort Criteria Are Met

a. Section 127 Criteria 1

As provided in Section 127.of the Atomic Energy Act, the following criteria govern exports for peaceful nuclear uses from the United States of source material, speci,al nuclear material, production or utilization facilities, and any sensitive nuclear technology-Criterion (1)

"IAEA safeguards as required by Article III(2) of the treaty will be applied with respect to any such material or facilities proposed to be ex )orted, to any such material or facilities previously exported and su aject to the applicable Agreement for Cooperation, and to an special nuclear material used m or produced through the use thereof." y.

The Czech Republic is a party to the Nuclear Non-Proliferation

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Treaty and has confirmed its adherence to the Czech and Slovak Federal Republic full scope safeguards agreement with the IAEA which entered into force on March 1,1972. Therefore, Criterion (1) is met.

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applicable Agreement for Cooperation, and no s produced through the use of such materials,pecial nuclear material facilities, or sensitive nuclear technology, will be used for any nuclear explosive device."

As a party to the Non-Proliferation Treaty, the Czech Republic has undertaken, among other things, "not to receive the transfer from

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any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly; not to manufacture or otherwise acquire nuclear weapons or other nuclear explosive devices; and not to seek or receive any assistance in the manufacture of nuclear weapons or other nuclear explosive devices".

Moreover, Article 8 of the Agreement for Cooperation includes the following undertaking:

" Material, equipment and components transferred pursuant to this agreement.and material used in or produced through the use of any material, equipment or components so transferred shall not be used for any nuclear explosive device, or for research on or the development of any nuclear explosive device, or for any military purpose."

The above cited undertakings and commitments apply to any material, equipment or components exported to the Czech Republic by the U.S. sabject to che Agreement for eration, including the proposed export and any future exports su to the Agreement and to any special nuclear material used in or duced through the use of such supplied materials or items.

Therefore,it is the view of the Executive Branch that, with regard to the proposed export and any special nuclear material produced through its use, Criterion (2) is met.

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" Adequate physical security measures will be maintained with respect to such material or facilities proposed to be exported and to any special nuclear material used in or produced through the use thereof. Following the effective date of any regulations promulgated by the Commission pursuant to Section 304(d) of the Nuclear Non-Proliferation Act of 1978, (P.L.95-242) physical security measures shall be deemed adequate if such measures provide a level of protection equivalent to that required by the applicable regulations."

L During September 1992, a team of U.S. Government physical protection experts visited the Czech and Slovak Federal Republic for an exchange of views with concerned Czech and Slovak authorities on physical protection, includin; a review of regulations governing site and transport security. On the basis of this review, it is the judgment of the Executive Branch that the Czech Republic has established physical protaction measures with respect to nuclear material and lac 11 ige:: which, as a minimum, meet those recommended in the IAEA document INFCIRC/225/Rev.2, "The Physical Protection of Nuclear Material".

In addition, Article 7 of the Agreement for Cooperation contains the following provision:

"The parties agree to the levels for the application of physical protection set forth in the Annex to this agreement, which may be modified by mutual consent of the parties without amending this agreement. The parties shall maintam adequate physical protection measures in accordance with such levels. These measures shall as a minimum provide protection comparable to the recommendations set forth in IAEA Document INFCIRC/225/Rev.2, concerning the physical protection of nuclear material, or to any revision of that document agreed by the parties."

Therefore,it is the view of the Executive Branch that, with regard to the proposed export and special nuclear material produced through its use, Criterion (E) is met.

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Criterion (4)

"No such materials, facilities, or sensitive nuclear technology proposed to be exported, and no special nuclear material produced through the use of such material, will be retransferred to the jurisdiction of any other nation or group of nations unless the prior approval of the United States is obtamed for such retransfer. In addition to other requirements oflaw, the United States may approve such retransfer only if the nation or group of nations designated to receive such retransfer agrees that it shall be subject to the conditions required by this Section."

The Article 5 of the Agreement for Cooperation provides that:

" Material, equipment and components trancterred pursuant to this agreement and any special nuclear material produced through the use of any such material or equipment shall not he transferred to unauthorized persons, or unless the parties agree, beyond the recipient party's territorialjurisdiction."

Therefore, it is the view of the Executive Branch that, with regard to the proposed export and special nuclear material produced through its use, Cnterion (4)is met.

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"No such material proposed to be exported and no special nuclear material produced through the use of such material will be reprocessed, and no irradiated fuel elements containing such material removed from a reactor shall be altered in form or content, unless the prior approval of the United States is obtained for such reprocessing or alteration."

The Article 6 of the Agreement provides that:

" Material transferred pursuant to this agreement and material used in or produced through the use of material or equipment so transferred shall not be reprocessed unless the parties agree. '

Therefore, it is the view of the Executive Branch that, with regard to the proposed export and any special nuclear material produced through its use, that Criterion (5)is met.

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"No such sensitive nuclear technology shall be exported unless the foregoing conditions shall be applied.to any nuclear material or equipment which is produced or constructed under the jurisdiction of the recipient nation or group of nations by or through the use of any such exported sensitive nuclear technology."

The proposed export does not involve sensitive nuclear technology. Criterion (6)is, therefore, not applicable.

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8-O B. Section 128 Criterion Section 128 a.(1) of the Atomic Energy Act, as amended, establishes the following additional Criterion: "as a condition of continued United States export of source material, special nuclear material, production or utilization facilities, and any sensitive nuclear technolo to non-nuclear weapon states, no such export shall be made unless safeguards are maintained with respect to all peaceful nuclear activities m, under the jurisdiction of, or carried out under the control of such state at the time of the export."

As a Party to the NPT with a full scope IAEA safeguards agreement in force, the Czech Republic has accepted and the IAEA is applying safeguards with respect to all peaceful nuclear activities in the Czech Republic. Therefore, this critenon is met.

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• 4. InimicalityJudgment On the basis of the foregoing analysis, it is the judgment of the Executive Branch that the proposed export will not be inunical to the common defense and security, and that the license should be issued.

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