ML20133C150

Application for Amend to License R-81,transferring Ownership to Cintichem,Inc

ML20133C150
Person / Time
Site:	05000054
Issue date:	12/12/1984
From:	Mcgovern J, Puccini L CINTICHEM, INC., UNION CARBIDE CORP.
To:
Shared Package
ML20132D029	List: ML20132D025 ML20133B996 ML20133C150 ML20133C188 ML20133C306 ML20133C339
References
FOIA-85-266 NUDOCS 8507200449
Download: ML20133C150 (87)

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UNJTED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In The Matter Of: ) Docket No. 50-54

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UNION CARBIDE SUBSIDIARY "B" INC. ) Facility Operating (Sterling Forest Research Reactor) ) License No. R-81 JOINT APPLICATION-FOR TRANSFER OF FACILITY OPERATING LICENSE Pursuant to Section 184 of the Atomic Energy Act of 1954, as amended (42 U.S.C. S 2234) and 10 CFR S 50.80 of the Nuclear Regulatory Commission's ("NRC") regulations, Union Carbide Subsidiary "B", Inc. ("Sub B"), a Delaware Corporation and holder of NRC Facility Operating License No. R-81 in accordance with which Sub B owns and operates a five (5) megawatt research reactor in Sterling Forest, New Yorp7 and Cintichem, Inc. ("Cintichem"), a Delaware corporation, request that NRC Facility Operating License No. R-81 be transferred to Cintichem for the purpose of continued ownership.and operation of the Sterling Forest Research Reactor by Cintichem.

On October 30, 1984, the President of the United States signed into law a bill (S. 12911 to authorize appropriations to the NRC for fiscal years 1984 and 1985. S. 1291 was passed by the U.S.

Senate on October 10, 1994, and by the U.S. House of Representatives on October 11, 1984. The NRC Authorization Act, P.L.98-553, at Section 109 states:

Sec. 109. Nothwithstanding the second sentence of section 103d and the second sentence of section 104d of the Ator.ic Energy Act of 1954,

, as arended, ne Nu: lear Regulatory

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, Commission is hereby authorized to transfer Facility Operating License Number R-81 to a United States entity or corporation owned or-controlled by a foreign corporation if the Commission -

(1) finds that such transfer would not be inimical to the common defense and security or to the health and safety of the public; and ,

(2) includes in such license, as transferred, such conditions as the Commission deems necessary to ensure that such foreign corporation cannot direct the actions of the licensee in ways that would be inimical to the common defense and security or the health and safety of the public.

The information required by 10 CFR S 50 of the NRC regu'lations, with respect to the applicants is as follows:

1. Name of Applicant:

Cintichem, Inc., a Delaware Corporation

2. Address of Applicant:

P. O. Box 816 Tuxedo, New York 10987

3. Description of Business of Applicants

a. Joint Applicant Sub B: Development and production of medical and industrial isotopes.

b. Joint Applicant Cintichem: Development and production of radiopharmaceuticals.

4. Cintichem, Inc. is a wholly-owned Delaware subsidiary of Medi-Physics, Inc., a Delaware Corporation.

Medi-Physics, Inc. is a wholly owned subsidiary of Hoffmann-LaRoche Inc., a New Jersey Corporation, which is owned by Curacao Pharmholding, N.V., a Curacao corporation. Curacao Pharmholding, N.V. is wholly owned by Sapac, Ltd., a New Brunswick (Canada) corporation. Sapac, Ltd. is publicly owned with its shares traded as a unit with the shares of F.

Hoffmann-LaRoche and Co., Ltd., a corporation registered in Switzerland.

5. The Facility Operating License is issued pursuant to Section 104(c) of the Atomic Energy Act of 1954, as amended. The Facility Operating License was renewed by NRC on September 28, 1984 for a period through June 30, 2000.

6. The financial qualifications of applicant are demonstrated by the September 30, 1984 Balance Sheets of Cintichem and Medi-Physics (Attachment 1). The information contained in Attachment 1 is confidential and not available to competitors of Cintichem and Medi-Physics. It is, therefore, requested that Attachment 1 be granted proprietary status, since its release could result in a competitive advantage to

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other firms in the pharmaceutical manufacturing market. Affidavits pursuant to 10 CFR S 2.790, providing for proprietary treatment of information submitted to NRC are enclosed with this application as Attachment 2. Medi-Physics agrees to provide all funds necessary to cover estimated operating costs of the Sterling Forest Reactor for the duration of the facility operating license as well as the estimated costs of permanently shutting the facility down and maintaining it in a safe condition.

a. Estimates for total annual operating costs for each of the next five years of operation are as follows:

1983 - $1.700 million 1984 - 1.900 million 1985 - 2.030 million 1986 - 2.170 million 1987 - 2.325 million 1988 - 2.500 million

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b. Estimates of the costs to permanently shut down the' facility and maintain it in a safe operating '

condition are as follows:

Gross Costs: $3,030,000.00 Net Costs: 1,240,000.00 (See Attachment 3)

7. The names, addresses and citizenship of the directors and principal officers of Cintichem, Inc. and Medi-Physics, Inc. are as follows:

CINTICHEM, INC.

(a) DIRECTORS TITLE NAME CITIZENSHIP Director Ellis B. Anderson U.S.

Director Irwin Lerner U.S.

Director Anthony P. Maris U.S.

Director Richard J. Murphy U.S.

Director Wilfred W. Rudley U.S.

Director Stuart J. Somerville U.S.

'; ", (b) PRINCIPAL OFFICERS TITLE NAME CITIZENSHIP President Stuart J. Somerville U.S.

Exec. Vice President Wilfred W. Rudley U.S.

Vice President-Research Henry H. Kramer U.S.

& Development Vice President & Napoleon Fusilero U.S.

Controller Treasurer William L. Hennrich U.S.

Assistant Treasurer Ruth Wallestad U.S.

Secretary Lido L. Puccini U.S.

Assistant Secretary Mary A. Rodimon U.S.

E' MEDI-PHYSICS, INC.

L (a) DIRECTORS TITLE NAME CITIZENSHIP Director Ellis B. Anderson U.S.

Director. Irwin Lerner U.S.

Director Anthony P. Maris U.S.

Director' Richard J. Murphy U.S.

Director Wilf red W.' Rudley U.S.

Director Stuart J. Somerville U.S.

(b) PRINCIPAL OFFICERS TITLE NAME CITIZENSHIP President Stuart J. Somerville U.S.

Exec. Vice President Wilfred W. Rudley U.S.

Vice President-Research Henry H. Kramer U.S.

& Development Vice President & Napoleon Fusilero U.S.

Cggtroller Treasurer William L. Hennrich U.S.

Assistant Treasurer Ruth Wallestad U.S.

Secretary Lido L. Puccini U.S.

Assistant Secretary Mary A. Rodimon U.S.

(c) The address at which all of the above are located is 340 Kingsland St., Nutley, New Jersey 07110 except for somerville, Rudley, Kramer and Rodimon whose address is 4050 Lakeside Drive, Richmond, California 94806.

8. Cintichem agrees to accept all license conditions and terms of Facility Operating License No. R-81, as amended, in force and effect at the time such transfer is approved by the NRC. Moreover, Cintichem agrees to accept the following additional license L conditions if the license transfer is approved by NRC

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a. The president of Cintichem, or any officers of Cintichem having direct responsibility for the control of, and any employees of Cintichem having direct custody of special nuclear material, as defined in the Atomic Energy Act of 1954, as amended, stored, used, or produced at the Sterling Forest facility, shall be citizens of the United States.

b. Cintichem alone shall be responsible for the custody and control of such special nuclear material; and the officer of Cintichem in charge of such special nuclear material shall report directly to the president of Cintichem.

c. The president of Cintichem shall be charged with the responsibility and have the exclusive authority (either acting directly or through persons designated by and reporting directly to him) of ensuring that the business and activities of Cintichem shall at all times be conducted in a manner which shall be consistent with the protection of the common defense and security of the United States.

, ,, d. Cintichem shall report to the Commission any action by the Government of Switzerland or any changes in the law of Switzerland coming to its knowledge that would affect ownership or control of Cintichem or any action by that Government coming to its attention regarding the operation of F. Hoffmann-LaRoche and Co., Ltd. that would affect the activities of Cintichem licensed by the Commission.

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e. The foregoing provisions shall apply to Cintichem and any entities in which Cintichem shall have voting control.

f. The foregoing conditions will continue to be binding on Cintichem unless amended or rescinded by the Director of the Office of Nuclear Reactor Regulation of the Commission, as appropriate (or the person holding any equivalent successor positions with the Commission or any agency of the United States which shall be the successor of the Commission).

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9. Cintichem agrees to adopt all currently approved emergency response plans, including those of state and local government authorities.

10. Cintichem will adhere to the minimum staffing requirements contained in OL R-81 and SNM 639.

11. Cintichem agrees to limit access to restricted data such that no individual will have access to restricted data until such individual has been granted clearance in accordance with the currently approved security plan for the facility.

The purpose for which this license transfer is being sought is to continue the operation of the Sterling Forest research facility (the " reactor"). The reactor is rated at five megawatts and is employed for the development and fabrication of radio-pharmaceutical products used by the medical industry in diagnosis and treatment. A major product of the reactor is molygdenum-99 which is produced to supply medical requirements in the United States, Japan, western Europe and South and Central America. A reactor near Ottawa, Canada, operated by Atomic Energy Canada, Ltd., is the only other North American facility producing fission product molybdenum-99.

In accordance with the agreement executed April 10, 1981 (Attachment 4), Union Carbide agreed to operate the Sterling Forest reactor for a period not longer than six (6) years, during which time Medi-Physics would pursue the transfer of the reactor operating license. If Cintichem is not approved for an operating license within the six year period, Union Carbide will decommission the l Sterling Forest reactor. The six year period expires April 10, l

1987.

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. Failure to effect this requested license transfer will result in the decommissioning of the Sterling Forest facility by Union Carbide Subsidiary "B". (See letter from Sub B, Attach-ment 5). Should this action be taken, the United States would be deprived of its sole source for the production of certain medical radioisotopes (see memorandum, Attachment 6). The domestic medical community would then be dependent upon foreign production facilities for required medical supplies. Thus, the domestic public interest is served by allowing this license transfer.

Respectfully Submitted, CINTICHEM, INC.

December 12, 1984 -

,, By_ ,

Its STATE OF NEW JERSEY )

) ss.

COUNTY OF ESSEX )

Before me,.a Notary Public for the County of Essex, personally appeared Lido L. Puccini who, being duly sworn, stated that he is Secretary of Cintichem, Inc., that he has read the foregoing " Joint Application For Transfer Of Facility Operating License" and the Attachments thereto, and that the information and statements contained therein are true and correct to the best of his knowledge and belief.

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.*c. ,, x ..- 7ptgg Notary {,Public My Commission Expires: '

'- f t-ROSEMARY MAcil"I NOTARY PUBUO 0F I:C'!! JI3IIY f.ty Comm stim t i-C . .. .. 4. 6

UNION CARBIDE SUBSIDIARY "B" Inc.

December 12, 1984 By M '

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District of Columbia ) ss. *

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Before me, a Notary Public for the District of Columbia, personally appeared James J. McGovern who, being duly sworn, stated that he is President of Union Carbide Subsidiary B, Inc., that he has read the foregoing " Joint Application for Transfer of Facility Operating License" and the Attachments thereto, and that the information and statements contained therein are true and correct to the best of his knowledge and belief.

O swYdY 6 Rotary Public MyCommissionExpires:///f i ,

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, l CINTICHEM, INC. ,

s BALANCE SMEET ,,

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, a SEPTEM8ER 30, 1954 Cerrent As' sets: - Current Liabilities:

Cash $ 62 Accounts Paychle 5 671 Ecceivables, Less Allowance for Accrued Expenses and Other CauhtCal Accounts 2,516 Current Liabilities 515 inrcritory, at the Lower of Cost or r.ir ke t 4,811 Total Current Liabilities 1,1CG ,

Prep.!d Expenses and Other Current Assets 177 .

Total Current Assets 7,566 , Payables to Parent and Co. 8 4,422 Total Liabilities 5,603 Fixed Assets:

La-d and Land Inprovements 735 pu11 ding 4,696 Stockholder's Equity '

7,194 Equipr.ent cod otter 5,305 Total Stockholder's Eq'ulty

• construction in Process 14 7,194 Lesse? Property-Capitc1 Lease 11 Totcl 10,672 Less: Allowance for Depreefation 5,553 g Eet lined Assets 5,209 ( q,;

. \s Otleet Assets 27 l .

l Total Assetc $ 12,E02 Total Liabilities and Equity $ 12,802 l

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CONSULIDATED PALANCE SHEET ,

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Septe*nber 30, 1984 6

CURRENT ASSCTSe CURRENT LIABILITIES:

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• 117 Accounts payable t 1,879 Interee-paay Inventeent w/ parent (5'33 ) Accrued Empen. 4 Othee Cur. t. t a b. 1.e42 Receivables. Leng Allowance foe Int ercompany Payable to parent 484 Do-abt f ul Accounts $154 7,688 Inven., at t he Lc=*e o f Cost er P'achet 5,708 TOTAL CURRENT LIADILITIES' 3,485 Prepaid Emper.=es a Other Current Assets 432 * -*

TOTAL CURRENT ASSETS 13,432 OTHER LIABILITIES:

. . . , Notes payable to Parent 9,584 Advances Payable to Parent 6,276 Lemew Deposits 11 DRODERTY, PLANT AND f~QUlp**ENT AT COST Land a Land Improvewent 532 TOTAL OTHER LIADILITIES 15,871 Buitdang & Pts 81d i ng Isoprovement s 5,242 - t Easeip-ent te,623 , TOTAL LIABILITIES 19,276 Leasehold !=*provevents 740 ..

Ccr.=truction in rrogress 1,762 Leased Property - Capital Lease 3, 9 % STDCMHOLDER' S EQUITY: -

Common St ock, par Value 9.c$

TOTAL 22,034 per Share Authortred See,ee9 .

Chhres, Igsued & Outstanding Lesse Accuw. Depree. & Shaerttration (7,3001 2'37,878 Sbares 15 Additional paid-in Capital 17,847 15,584 '

' NET fined ASSETS

• TOTAL , 17,862 {'V.

CTHER ASSETS: e Noncurrent Tangib!v- Assets 2,547 Licenges. INDs, NOAs, 8 Other, Less A=ortiratton s i, e21 1,875 Goodwill, Less nuortiration $363 1,138 Total Retained Earnings (2,282)

Security and Lease Deposits 46

• Start-up Costs. Less Amortization 92ce 74 .

TOTAL STOCMHDLDER'S EQUITY .15,580 Patents. Less Amortiratson $220 160 TOTAL OTHER ASSETS 5,840 '

TOTAL ASSETS

• 34,856 TOTAL LIABILITIES AND EDUITY

• 34,856

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{ ; i '.,\. '. *s. ' i ' ,/I,j,4, . Gcf I .9 (201) 235 5000 December 13, 1984 U.S. Nuclear Regulatory Commission Washington, D.C. 20055 Gentlemen This is an appilcation for withholding of a document contained in the license transfer application for Facility Operating License No. R-81 in the matter of Union Carbide Subsidiary "B", Inc. This application is made pursuant to 10 CFR Section 2.790. The document to be withheld is Attachment 1 to the application. Attachment 1 contains privileged and confidential financial information related to Medi-Physics, Inc., and its wholly-owned subsidiary, Cintichem, Inc., the license transferee. The

,", affidavit accompanying this application contains a full statement of the reasons this information should be withheld from public disclosure.

Sincerely, 4A Lido L. Puccini Seeretary LLP!g Enclosures J (p ,

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t COST ESTIFATE FOR DECOMMISSIONING NUCLEAR FACILITIES AT STERLING FOREST An estimate of the cost of decommissioning the nuclear facilities (Reactor and Hot Lab) at Sterling Forest are as follows:

In order to make this first approximation, the following assumptions are made: ,

a. Licensee continues to occupy the Sterling Forest site.

b. The Reactor and Hot Lab buildings remain intact.

c. The USNRC, N.Y.S. Dept. of Health, N.Y.S. Dept. of Environmental Conservation, U.S. Dept. of Environmental Protection and Sterling Forest Corporation agree to our proposal for decommissioning.

At present there are two alternatives in decommissioning the facilities.

The one chosen will depend ultimately on the final utilization of the site. These alternates are:

Alternate A 6 P

' Complete closure of the facility whereby a "delicensing" could be accomplished. It is proposed that this would be accomplished by dismantling and decontaminating the facility 50 that there would be no radiological hazard to the environment as defined by the responsible regulatory authorities. It is proposed that this condition be accomplished by segregating contaminatec facilities from the environment or cleaning them up. This decommissioning would result in the unrestricted availability of these two buildings or the site for whatever purpose is deemed desirable.

Alternate B Maintaining the nuclear utilization capabilities of the facilities under a byproduct materials license. There would have to be restricted access to the buildings under this condition but the buildings could be used for other purposes provided the basic structures did not have to be altered.

JJMcG:js Rev. 04/26/83

Cc:t Estimate for Decommissioning Nuclear Facilities at Sterling Forest Page 2

..e cost approximations in 1983 dollars for these alternatives are as follows:

Alternate A Alternate B "Delicense" Standby " Byproduct License" PHASE I PHASE I

a. Conduct, Survey (radiological)

b. Promulgate Decommissioning Plan.

c. Prepare Hazards Summary Analysis and submit to NRC and N.Y.S.. Same As Alternate A

d. Obtain approval to proceed.

It is estimated that this phase could 3 Months Time Required require 6 calendar months at about 60 percent of present staff.

Based on current experience in At a cost of H $250,000 operational expenses, this would amount to 3 5450,000. Fuel Shipment 3 $80,000 Reprocessing $530,000 PHASE II PHASE II Fuel Shipment S82,000 Maintain facility under Fu21 Reprocessing $530,000 Byproduct possession license.

Disposal of Low Level Minimum staff Kaste (25 truck loads) 5855,000 2 man / year $80,000 and Large Quantity Waste (20 truck loads) Minimum Utili-ties / Yeas $300,000 Dismantle Decon Room and Prepare for Burial $12,000 Dismantle Stack and Prepare for Burial $12,000 Dismantle Filter Bank

and Prepare for Burial S12,000 l

Dismantle Storage Tank and Prepare for Burial 312,000

.smantle Pump Room and

! Disconnect Piping to I Environment $23,000 Decon Pool -

$35,000

! JJMcG:j s 1 Rev. 04/26/83

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-Cost Estimate for Decommissioning Nuclear Facilities at Sterling Forest Page 3 Alternate A Alternate B "Delicense" Standby " Byproduct License" PHASE II PHASE II Decon Hot Cells $35,000 Disconnect Piping to Prccess Drain Tanks and

• Bury .312,000 Labor and. Utilities for Phase II, Assume 1/2 Staff 16 Months $730,000 Cost of Final Radio-logical Survey Depending Upon Regulatory Require-ments.. $230,000 Total cost of decommissioning Total cost of decomissioning Alterriate A: Alternate B:

Phase I $450,000 Phase I $860,000 Phase II $2,350,000 Phase II $380,000 Phase III $230,000 $1,240,000 (Year 1)

$3,030,000 $350,000/

Year Thereafter (Utilities plus 1 H.P. Man)

An inventory of uranium exists which serves as fuel for the reactor and as target material for isotope production. The scrap value of this inventory is estimated to be $1 million.

Without considering other recoverable assets the estimated net decommissioning cost will be

$2 million. The net cost for placing the plant into standby status will be $240,000.

f JJMcG:js Rev. 04/26/83

l OPERATING AGREEMENT - UNION CARBIDE SUBSIDIARY B AND CINTICHEM, INC.

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t OPERATING AGREEMENT -

April 10, 1981 BETWEEN

.c UNION CARBIDE CORPORATION AND CINITCHEM, INC.

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TABLE OF CONTENTS ITEM PAGE OPERATING AGREEMENT 0.

1 ARTICLE 1 - Plant Operations..........................

2 ARTICLE 2 - Supply of Materials and Services.......... 3 ARTICLE 3 - Cost of Plant Operations.................. 4 ARTICLE 4 - Supply of Products........................

8 ARTICLE 5 - Governmental Responsibilities............. 9 ARTICLE 6

- Radioac tive Ma terials. . . . . . . . . . . . . . . . . . . . . 10 ARTICLE 7 - Transfer of Francnises, Permits, Licenses and Otner Rignts and Privileges........... 11 ARTICLE 8 - Risks of Operation........................

12 ARTICLE 9 -

Decommissioning.......................... 14 ARTICLE 10 - Additional Covenants of Operator..........

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15 ARTICLE 11 -

Term...................................... 18 ARTICLE 12 - Equitable Relief.......................... 19 ARTICLE 13 - Force Majeure.............................

20 ARTICLE 14 -

Indemnification........................... 20 ARTICLE 15 - Independent Contractors................... 21 ARTICLE 16 -

Assignment................................ 21 ARTICLE 17 - Governing Law.............................

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! ARTICLE 18 -

Notices...................................

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ARTICLE 19 - Entire Agreement..........................

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EXHIBITS 1'

EXHIBIT A Site Plan / Designation of Buildings.....;..

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EXHIBITS (CONTINUE 0) ,

EXHIBIT B List of Proaucts......................... 2 EXHIBIT C List of Materials, Services and Facilities to be Supplied by Operator to Company K... 3 EXHIBIT D List of Materials, Services and Facilities 3 to be Suppliea or arrangeo by Com A to

f Operator.........................pany

......... 3 EXHIBIT E List of Managerial Titles................. 13 l .

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OPERATING AGREEMENT OPERATING AGREEMENT dateo April 10, 1981 oy anc among UNION T

CARBIDE CORPORATION (hereinaf ter called " Operator"), a New York

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corporation having an office at 270 Park Avenue, New York, New York 10017, and CINTICHEM, INC. (hereinaf ter called " Company A") ,

, a Delaware corporation having an office at Long Meacow Road, Tuxeuo, New York 10987, which is a wholly-owned subsidiary of Medi-Physics, Inc., a Delaware corporation naving an office at 340 Kingslona Street, Nutley, New Jersey 07110 (hereinaf ter called "Medi-Pnysics") .

W I T N E S S E T d:

WHEREAS, by Deed of even date herewith Operator has granted and*

conveyed to Union Carbide Subsidiary B, Inc., a Delaware corporation which is a wholly owned subsidiary of Operator (hereinaf ter called

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" Company B") , all right, title and interest in approximately 100 acres of land, together with the buildings and improvements locatea thereon, situated along Long Meacow Road (also known as Long Swamp Road) in the Town of Tuxedo, County of Orange and State of New York more fully described in Exhibit A hereto (nereinafter" called the

" Plant Site") ;

! WHEREAS, Operator is the operator of Buildings 1 ano 2 located i

on the Plant Site together with the nuclear reactor and related equipment (hereinafter called the " Plant") title to which nas been l

conveyed by Operator to Company B, which Plant has heretofore been operated for the benefit of a certain Nuclear Products business formerly owned by Operator and now owned by Company A; and .

y WHEREAS, pursuant to a Stock Sale Agreement datsd the date hareof and executed contemporaneously herewith between Operator anc Medi-Physics (hereinaf ter called the " Stock Sale Agreement"), all of the issued and outstanding capital stock of Company A bas conveyed by Operator to Medi-Physics; anc WHEREAS, it is intended that Company A snall nave the benefit of the entire output of the Plant at the sole cost and risk of Company A (except as provia,ed in Article 8(o) nereof); ano WHEREAS, it is intended that Operator shall operate tne Plant and, insofar as requireo by law, the Plant site, for tne cenefir and at the sole cost and risk of Company A lexcept as provided in Article 8(b)], in accordance with applicable governmental requirements and with licenses held by Operator that are requisite or relevant to such operation, with Operator retaining possession f

of, and sole, complete and total operating control of, the Plant, buf with Company A entitled for commercial purposes (a) to determine the output quantity of each product of the Plant and I (b) to market and distribute the products of tne Plant, all in accordance witn the terms and conditions of this Agreement and the Stock Sale Agreement and sub]ect to Operator's existing contractural commitments relating to the NPD business; l NOW THEREFORE, the parties hereto agree as follows:

1. Plant Operation.

During the Term of tnis Agreement (as nereinafter definec},

Operator shall operate the Plant to produce the products of the Plant listed in Exhibit B hereto and any otner radioisotopes b

suitable for medical opplication for which Operator fecL. :n gooo faith it possesses suf ficient technical competence and which can ce safely produced (hereinafter called the " Products") for tne exclusive commercial benefit of Company A. All activiti s within the Plant, including but not limited to security and safety in tne area around the Plant and the disposition of radioactive by-product waste, shall be solely performed or provided for Dy Operator.

Company A shall designate the quantity of each of the Products to be produced oy Operator and tne schedule of such production, suc]ect to the terms of this Agreement and Operator's existing contractual commitments.

2. Supply of Materials and Services. ,

I (a) The provision of all services and materials requirea in Operator's opinion for Plant operations, except as proviaed in 6

Article 2(c) hereof, shall be arranged by Operator when and as, in 1

the opinion of Operator, the same are required.

(b) The materials, services and facilities listed in Exhibit C hereto shall be supplied oy Operator to Company A wnen and as requested by Company A. -

(c) Tne materials, services and facilities aescribed in Exhibit D hereto shall be supplied to Operator for Plant operations by Company A or Company A snall make all arrangements for such supply by third parties. Company A shall also supply those facilities and utility services described in Exhibit D for tne operation of Buildings 3 and 4 as shown on Exhibit B.

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v Company A nhall hcvc full possession and control of (i)

Building 5 (including all machinery and equipment located therein and all appurtenant service lines tnereto ano enerefrom)_as shown on Exhibit B, subject to the provisions of Article 5(a) hereof, (ii) any non-radioactive storage and maintenance buildings upon the Plant Site and, (iii) all utility lines and other ccmmon facilities used to provide to the Plant Site, or any part tnereof, any facilities and utility services as described in Exhibit D. At its sole cost and expense, Company A shall oe liable to maintain tne aforesaia buildings, utility lines and other common facilities in good working order and repair ano to perform all necessary maintenance and replacement thereof. .

I (d) Operator shall nave tne right and ooligation from time to time during the Term of this Agreement to make such reasonable i

alt 6 rations, repairs, additions, or capital improvements in or to the Plant or any part thereof as it, in its sole discretion, deems i

(i) necessary or appropriate to the safe, secure, and proper l

operation thereof, (ii) required by Governmental Requirements (as hereinaf ter defined); (iii) required to fulfill its commercial obligations to Company A pursuant to this Agreement; or (iv) required as a result of damage caused oy an act of force majeure; l provided, however, that Operator shall give prompt prior written notice tnereof to Company A.

3. Cost of Plant Operations.

! (a) Since Plant operations are Deing conducted for cne sole economic benefit o,f Company A, all costs and expenditures (including taxes and capital expenditures) of any kind or character i .

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v incurred by Operator or Company B arising oo* ^f the Plant, tne Plant Site, or Plant operations, or otherwise provided for in this Agreement (hereinafter callea "Suoject Expenses"), including out not limited to, costs arising from ownership of the Plant, taxes, from insurance coverage tnereof wnich Company A or Operator may elect to put into effect (including nuclear liability insurance), from alterations, repairs or capital improvements to the Plant pursuant to Article 2(d) , from Plant operations and production of the Products (including the salary, pension and otner benefit plan expenses and any other costs respecting employees of Operator including tnose employees to De transferred to Company 8 and/or Company A as soon as applicable regulations permit and required '

licenses are obtained), or from Decommissioning as proviceo in Article 9, except as otherwise provided in Article 8(b) hereof, 5

shal'1 be for the sole account of Company A. Company A snall reimburse, indemnify and hold Operator harmless for any and all sucn costs and expenses of any kind incurred by Company B (except as provided in Article B[b] hereof).

(b) Operator shall at all times conduct Pldnt operations in as efficient a manner as is practicable and shall use its best efforts to avoid unnecessary costs and expenditures in relation to such operations.

l l (c) Operator shall provide montnly in advance to Company A l

a detailed estimate of Eubject Expenses for such month to be incurred pursant to Article 3 (a) , and Company A shall ceposit witn Operator monthly in advance a sum equal to such estimate. Promptly l

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following ocen month, Oparator shall provide to Company A e detaitaa schedule of its actual Subject Expenses for such montn, and the differential between the advance from Company A and the actual Subject Expenses shall be promptly settled by payment between the parties as appropriate. That portion of tne actual Subject Expenses respecting employees (including but not limited to, salary, pension and other benefit plan expenses) shall be determined by Operator in a manner which is consistent with the methods used by Operator genera 31y to allocate among its operating components tne types of costs and expenditures which are included in such portion.

(d) At any time and from time to time during the Term of this Agreement, Company A may dispute the necessity for any actions, .

I taken or proposed to be tanen by Operator pursuant to this Agreement, or the costs incurred or to be incurred therefor. In the f event of such a dispute the parties shall discuss tne same in good faith to attempt to resolve the dispute. In the event of failure to resolve the dispute or in the event Operator believes it necessary

~

to take action before discussions with Company A take place, Operator shall take such action as it in its sole discretion deems necessary. The standard for resolving any such disputes either in discussions between the parties or in any legal action whien Company A may choose to initiate shall be the standard of the " reasonable man", i.e., would a reasonable prudent man under the obligations of Operator at law and pursuant to this Agreement, with responsibility for (i) the safe and secure operation of the Plant, (ii)

Governmental Requirements, and (iii) for maintaining its licenses

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End permits in effect purcuant to Article 5(b), but also (iv) tne obligation provided in Article 3 (b) , take the action taken or proposed to be taken by Operator. - -

(e) Promptly following the execution of this Agreement es to the balance of calendar year 1981, and in advance of each

/

calendar year thereafter during the Term hereof, Company A and Operator shall cooperate in the development of a business budget for Company B which shall estimate the cost of Subject Expenses for the relevant year. Since such budget will be affected by subsequent events and conditions, Operator shall not be liable in any way for failure to meet such budget; however, Operator snall use its best efforts to conduct Plant operations in accordance with such budget,'

subject to any variances that Operator, in its sole discretion, deems necessary or appropriate to the safe, secure and proper t

operItionofthePlantorrequiredbyGovernmentalRequirements.

(f) Semi-annually on dates to be specified during tne Term of this Agreement, Company A shall pay to Operator as reimbursement for Operator's indirect costs of operating the Plant, including but l not limited to home office general and administrativA overhead I

costs, a fee equal to Four and One Half Percent (4-1/2%) per annum for the first three (3) years and Seven and One Half Percent (7-1/2%) per annum for the last three (3) years of the actual Operating Expenditures of Operator (as hereinafter defined). Such Operating Expenditures shall include but not be limited to all costs l

i of raw materials, utilities, labor, overhead, quality control, waste storage, transportation and disposal and all other expenses normally i

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v included in coat accounting for cost of goods sold and cctcally incurred by Operator.

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(g)

In order to permit Operator to discharge-i3s responsibilities hereunder during the term of this Agreement, e

Company A, at its sole cost and expense, shall make available to Operator for use by Operator's supervisory personnel two offices in Building 4, togetner with adequate secretarial, telepnone and'otner necessary clerical services.

4. Supply of Products.

(a) The Products of the Plant snall be supplied by Operator to Company A when and as produced at no cost to Company A beyond the Suoject Expenses and other amounts payable under '

Article 3.

(b) Operator shall use its best efforts to produce the Prod'ucts when and as required by Company A in compliance with the specifications designated by Company A. It is understood however, that Operator shall not be liable to Company A in any manner whatsoever for the partial or total failure to supply Products, the l- failure to meet delivery schedules, or the supply of' Products not meeting specifications, or for any other acts or failures to act in regard to the supply of Products, except for an unjustified intentional refusal to supply Products. Except as set forth herein, THERE ARZ NO EXPRESS WARRANTIES BY OPERATOR AS TO PRODUCTS AND SHALL BE IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTY OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR A PARTICULAR PURPO

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S. Governmental !.esponsibilities.

(a) Operator shall at all times conduct Plant operations in accordance with the Atomic Energy Act of 1954, as amended, and the rules and regulations thereunder and its licenses to operate the Plant and to possess the "Special Nuclear Material" required to fuel the Plant, and all other federal, state and local laws, regulations, rules, orders, decrees, directives, licenses and, permits wnien may apply to the Plant, Plant operations or Company B (hereinafter called " Governmental Requirements"). Operator througn its employees shall at all times have possession of and sole, complete and total control over the Plant, tne Plant Site and Plant operations, as required to comply with Governmental Requirements and the safe and '

secure operation of the Plant, including without limitation the right to determine the activities which may be conducted on the Plan Site and the right at any time to exclude or remove personnel or property therefrom.

(b) Operator shall use its best efforts at all times to obtain and maintain in effect all licenses and permits required for Company B to own the Plant, and for Operator to opera'te the Plant, l conduct Plant operations and possess radioactive materials, and not to restrain the operations of Company A as neretofore conducted, I subject to Article 6 hereof.

t (c) In order to comply with Governmental Requirements, it may be necessary for Operator to own or lease and/or operate certain additional facilities of Company A located upon the Plant Site, and the parties agree to make such other and further reasonable and

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necessary cgreemants or amendments to tnis Agreement anu to take such other action as may be necessary from time to time to satisfy such requirements at no cost to Operator. --

6. Radioactive Materials.

Until such time as the radioactive materials licenses as f

described in Article 7 hereof have been issued or transferred to Company A (hereinafter called the " Interim Period"), Operator will

• supervise all activities of Company A's employees when such employees are in the radiation controlled areas in Builaing 4, as such building is designated in Exhibit A, or otherwise involved in the transfer, receipt, possession or use of any radioactive material. While in the radiation controlled areas in Building 4, '

Company A employees shall be limitea to activities wnich are 4

directly related to the manufacture of the "CINTICHEMR" Gener4 tor

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product line and/or the research and development of radiopharmaceuticals. An employee of Operator knowledgeable in ene safe handling and use of radioactive materials will be present on site at all times during which radioactive materials are ceing handled by Company A employees in Building 4 and shall have complete authority to supervise and direct tne manner and methods for handling such material and for establishing and enforcing safety procedures with respect thereto. Such authority shall include the right (i) to exclude personnel from the area where radioactive materials are being used, (ii) to have exclusive possession of all means of access to radioactive material storage areas (iii) to determine which of tne employees of Company A are qualified Dy 10 - 61t 0 _

e training and experience to work with radioactive materials, (iv) to establish training and refresher courses for Company A employees in the safe use and handling of radioactive materials, and 3v) to require Company A to make such changes in equipment and/or i

procedures as are necessary, in the opinion of Operator's Radiation Safety Officer, to comply with the t5rms of Operator's Radioactive Materials Licenses as required to operate the Plant.

7. Transfer of Franchises, Permits, Licenses and Other Rights and Privileges.

(a) Company A will use its best efforts with the full assistance and cooperation of Operator to obtain as soon as possible for Company A or a tnird party purchaser of Company B all of tne .,

I franchises, permits, licenses and approvals presently held in the name of Operator which can legally reside in Company A ana may be required to allow Company A to perform all of the operations currently conducted at tne Plant, without the supervision ana/or assistance of Operator. Such obligation shall include, but not be limited to, the following actions:

(i) Promptly following the execution of this Agreement, Company A will apply to the New York State Department of Labor requesting, at Operator's option, either the transfer to Company A of Operator's Radioactive Materialc Licenses Nos.

i 729-0322 and 2123-0322 MD or the issuance of new radioactive materials licenses in the name of Company A.

(ii) Promptly following the execution of this Agreement, Company A will apply to the Nuclear Regulatory Commission requesting at Operator's option either the transfer 11 - /i

V of that portion of Operator'; cxisting Special Nuclear Meterials License No. 639 relating to operations conducted in Building 2, to Company A, or requesting tne issuance of a new Special -

Nuclear Materials License in the name of Company A relating to the operations conducted in Building 2.

(iii) Company A and Operator shall seek to have the consent order iss,ued to Operator on September 18, 1978 oy tne New York State Department of Environmental Conservation rescinded ano air emission permits issued to the appropriate companies.

(b) During the Interim Period, Company A ana Operator shall use their best efforts to maintain in force all necessary

• franchises, permits, licenses ana other rights and privileges necessary to continue the operations presently conducted at the I

Plant.

(c) With respect to Operator's Radioactive Materials License No. 2123-0322MD, it is understood that during the Interim Period Operator shall continue to distribute, in Operator's own name, the "CINTICHEM" line of generator products and continue to be registered as a drug manufacturer and maintain new drug applications with the U.S. Food and Drug Administration for such

products. All costs associated with the production and distribution of the "CINTICHEM"R line of generator products and all income received therefrom shall be for the account of Company A.

8. Risks of Operation.

(a) Except as. expressly provided in Article 8(b) hereof or in tne Stock Sale Agreement, Company A hereby assumes an:3 shall o _. . _ - - . . __. .-

be liable for, and shall hold harmless and inaemnify Oper:::r in connection with, any and all loss, costs, expenses, risks and liabilities of any kina or nature associated witn ene operation and ownership of the Plant and any licenses which may be required therefor, to the extent said loss, costs, expenses, risks and liabilities are not reimbursed by Operator's insurance.

(b) Notwithstanding tne provisions of Article 8(a), no indemnification to Operator shall be required, and Operator assumes and shall De liable for, and shall nolo narmless and indemnify Company A and Company B in connection with, any claims of accident, injury or illness to employees of Operator, employees of Company A, or third parties, or damage to property of Company A and Company B,,

I including but not limited to tne Plant, Plant Site and/or tne property of Company A, Operator and/or third parties, which are 1

caused by or result solely from the proven negligent acts or omissions of those employees of Operator holding the titles listed in Exhibit E hereto (hereinafter called " Managerial Negligence").

(c) Except for such damages which shall have been properly paid by a party hereto to a third party for wnica indemnity is otherwise due pursuant to this Article 8, neither party shall in any event ce liable to the otner for special, indirect or consequential damages, whether or not resulting from the negligence of such party.

(d) Operator shall purchase and maintain insurance with reputable companies and in amounts and coverage reasonably acceptable to Company A as follows:

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(i) Nuclear Liscility, (ii) Workers' Compensation and Employers Liability, l (iii) Comprehensive General Liability including cut not limited to Products, Contractual and Personal Injury (iv) Automobile Liaoility, (v) Property Damage, (vi) Employee Dishonesty and other insurance as may be required by Company A. Operator will provide Company A witn full ano complete copies of tnose insur'ance policies specific to the NPD business and not palt of Operator's general insurance program, including any changes tnereto. Operator-shall provide su,mmaries of Operator's general insurance policies and t

evidence reasonably satisfactory to Company A that tne same are in full force and effect. In the event Operator is unwilling or unable to obtain or maintain suen insurance coverage, Company A may ootain and maintain the same. The cost of Operator's insurance shall be deemed a Subject Expense of Company B or seperately reimbursed to Operator, as the case may be. At Company A's request, Operator shall include Company A as an additional named insured under Operator's insurance.

9. Decommissioning.

Upon the expiration of tne Term of tnis Agreement or earlier termination for any reason, or in the event that for any reason 3

/['1 (1

I whatsoever Operator is required by Governmentoi Requirements to decommission the Plant, Operator shall commence to dismantle, decommission and liquidate the Plant in accordance witn all Governmental Requirements, to dispose of radioactive materials and any other materials, equipment or waste, and to terminate une employees of Operator when their services are no longer required (hereinafter called " Decommissioning"). All costs ona expenses or any kind related to Decommissioning, including without limitation, the cost of Operator's employees, contractors, material suppliers, and severance costs in accordance witn Operator's policies and plans in effect at sucn time, snail be for the sole account of company A and shall be paid for by Company A or advanced to Operator in the same manner as provided in Article 3(c); provided nowever, that in the event Decommissioning is requited within the first three (3)

.g .w years of tnis Agreement solely as a result of Managerial Negligence, Operator shall bear the aforesaid costs and expenses.

10. Additional Covenants of Operator.

(a) Operator will give Company A, its counsel, accountants and authorized representatives full access auring normal ousiness hours to all of the books, tax returns, contracts, minute books, corporate records, and financial, regulatory and otner recoras of Company B, and will give a mutually acceptable firm of certified public accountants designated oy Company A access to such recoros of Company B as are reasonably necessary for the verification of the amount of Suoject Expenses Dilled to Company A. Any examination thereof shall be made in a manner which will not unreasonably

V interrupt or interfere with the ordinary course of Operator's business.

(b) Operator will give to Company A prompt notice of any development materially affecting the Plant and shall consult with Company A with respect thereto.

(c) Operator will operate the Plant in the normal course of business, substantially as carried on prior to the date of this

, Agreement, and will not make any material disposition of any of its assets comprising the Plant, except in the regular course of its business as provided herein.

(d) Except as otnerwise provided for or contemplated herein, Operator will not make or become a party to any new contract or commitment concerning the supply to tne Plant of materials or

( services or the disposition of the Products, except as are currently in force or are required for operating the Plant or production of Products in the ordinary course of Company B's business, without securing the prior written approval of Company A.

(e) Operator will not authorize, issue or sell any shares of the capital stocn or any other securities of Company a o'r become obligated to do so, without the prior written approval of Company A or as may be permitted under tne Stock Sale Agteement.

(f) Operator will not permit the amendment of the Certificate of Incorporation or Bylaws of Company B unless consented to in writing by Company A, except to change its name to a mutually

• acceptable substitute not containing any reference to " Union Carbide". *

. 1 1

(g) Without the prior written consent of Company A, except as permitted by this Agreement or the Stock Sale Agreement, Operator will not pay or agree to pay any unreasonably large severance pay to any employee of Operator or Company B the costs of which are payable by Company A hereunder, nor will it materially increase or agree to increase the compensation it pays to'such employees or adopt any fringe benefits other. than sucn as are applicable to all of Operator's or Company B's employees.

(h) Operator shall take all reasonaole actions to maintain an adequate staff of competently trained employees assigned to operate the Plant. Operator shall no't nire additional employees for the Plant the costs for which are payable by Company A hereunder except to fill presently existing positions which may subsequently be vacated or upon demonstration of need for increased labor force J

to Company A or as required in Operator's sole discretion oy Governmental Requirements or for the safe and secure operation of the Plant, or except where Company A consents in writing.

(i) Operator will exert its best efforts to preserve and protectCompanyB'sassetsintactanctoassistCom[anyAto preserve any favorable relationships with any of the suppliers or customers of Company A.

l (j) Operator will not declare or pay any dividena on or l

l make any other distribution upon, any shares of Company B capital stock outstanding as of the date of this Agreement, or permit Company B to purchase, retire or redeem any such shares without the l prior written consent of Company A.

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l (k) Operator will not enter into any negotiations or transactions or participate in any negotiations or transactions witn any entity regarding the ultimate disposition of the cbcon stock or assets of Company B on behalf of Company A or pursuant to its right under Article 1.2(c) of the Stock Sale Agreement without tne prior written consent of Company A, within the first 3 years of this Agreement, which consent shall not ce unreasonaoly witnneld, and thereafter upon prior notice to Company A. Operator agrees to cooperate fully with Company A in any negotiations enat soay ensue.

In connection with the covenants set forth in this Article, wherever the consent or approval of Company A is required, sucn consent or approval shall not be unreasonably withheld. i

11. Term.

(a) The term of tnis Agreement snall commence on tne date hereof, and shall continue in effect for a period of six (6) years thereafter, provided however that this Agreement shall automatically

, terminate at such earlier time as Operator makes a conveyance of the Company B Shares as required or as permitted under Article 1.2 c f the Stock Sale Agreement, or at such earlier time as Company A exercises its unconditional right to terminate this Agreement upon One Hundred and Eighty (180) days written notice to Operator.

(b) Operator shall nave the right to terminate this Agreement on One Hundred and Eighty (180) days written notice or witnin the period specified in Article ll(c) below, whichever is shorter, to Company A, in the event Hoffmann-La Roche Inc. sells, transfers or assigns any shares or tne rignts tnereto in-

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Mcdi-Pnycico, Inc., or t di-Puycico, Inc., sells Compnny A er the business of Company A to an unaffiliated tnird party.

(c) In the event either Company A or Operator exercises its rights to terminate this Agreement pursuant to ll(b), Operator shall continue to operate the Plant pursuant to tne terms and conditions of this Agreement for up to six (6) additional months beyond the thereindescrioed sale or until tne tnird party purchaser obtains all applicable licenses and approvals required to own and operate the Plant pursuant to the Atomic Energy Act of 1954, as amended, whichever occurs first. Notwithstanding the above, in no event shall Operator be obligated in any way to operate the Plant beyond the six (6) year Term of this Agreement specified in Article" 11(a).

(d) Upon any termination of this Agreement except upon a

.i .,

conveyance of the common stock of Company B to a third party purchaser pursuant to Article 1.2 of the Stock Sale Agreement, the provisions of this Agreement shall survive and remain in full force and effect until such time as Decommissioning nas been completed to

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Operator's satisfaction, provided that operator's obligations to produce Products for Company A shall cease upon sucn termination.

12. Equitable Relief.

The parties acknowledge that in the event of Operator's breacn of conditions and covenants contained in Articles 2(b), 2 (d) , 5 ( b) ,

9 or 10 or Company A's breach of Article 2(c) or 5(c), monetary damages would be inadequate to remedy the irreparable harm suffered by the aggrieved party, and therefor, notwithstanding any provisions O

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for relief at law, tna parties agree tnat equiteole relief usy be granted by a court of competent jurisdiction.

13. Force Ma)eure. *

.Either party hereto shall ne relieved from liability hereunder for failure to perform any of the obligations arising hereunder, except the payment obligations, for the time anc to the extent suen failure to perform is occasioned by voluntary or involuntary compliance witn any law, order, regulation or any requirement of any Governmental authority or shortage or breakdown or other failure of facilities used for providing a service, or shortages, delay or inability to obtain labor, power, fuel or transportation, or my acts i

of God or by acts of public enemy, or ey strikes, lockouts, or any other industrial disturbances, riots, floods, hurricanes, fire L

explosions, or any other cause or causes of any kind or character, reasonably beyond the control of the party failing to perform whether similar to or dissimilar from the enumerated causes above.

, 14 . . Indemnification. ,___

, In the event of any-claim for indemnity. pursuant to Articles. 3 or 8 of this Agreement, the party to be indemnified shall give the other party prompt written notice thereof and shall permit such i

(

i party to assume the defense of any such claim or any litigation resulting from such claim. Failure to notify the indemnified party 4

within' sixty (60) days after such notice thereof shall have been given of an election to defend, shall oe deemed a waiver by the other party of its right so to defend such claim. If the indemnifying party shall elect to defend any such claim, such l -

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dafonsa chsll b2 conduct [d oy such coun cl as chcIl om salected by such party at its expense. The indemnified party shall cooperate fully to make available to the other party all pertinent information under its control or relating to any such claim. If the other party fails to defend such claim, the indemnified party may defend sucn r claim or settle it, if it is deemed advisable by the indemnified party, at the other party's expense ano, in connection therewitn, the other party shall cooperate fully and make available to the indemnified party all assistance, pertinent information and personnel under its control or relating thereto.

15. Independent Contractors.

Each of the parties shall be deemed to be independent ,

i contractors in ene performance of its obligations nereunder.

16. Assignment.

5 ibis Agreement snall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, legal representatives and permittea assigns. No assignment of any rignes or delegation of any obligations provided for hereunder may be made by any party hereto without the express written consent of tne otner party hereto, except that Operator may at any time assign this Agreement to Company B at sucn time as Company 8 holds une licenses required for it to perform this Agreement, and Company A may at any time upon prior written notice assign the rignts ano ooligations under this Agreement to Medi-Physics, Inc.

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17. Governing Law. '

The validity, interpretation, and performance of this Agreement shall be governed by the laws of the State of New York-applicable to agreements ,made and to be performed entirely in that state.

18. Notices.

Any notices or communications permitted or requirea nereuncer shall be deemed sufficiently given if sent by Unitea States Postal Services, certified mail, postage prepala, return receipt requestec, f

addressed to the respective parties at the following addresses:

Piirt to January 1, 1982 Union Carbide Corporation 270 Park Avenue New York, New York 10017 Attention: Secretary

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Commencing January 1, 1982 Union Carbide Corporation Old Ridgebury Road Danoury, Connecticut 06817 Attention: Secretary l If to Company A:

Cintichem, Inc, c/o Mediphysics, Inc.

! 340 Kingsland Street Nutley, New Jersey 07110 Attention: President l

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19. Entira Agrenmnntb This Agreement contains the entire agreement between tne parties hereto with respect to the subject matter hereof and and.there are

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no representations, warranties, undertakings, or agree $ients, otner

.than those expressly set forth herein.

., IN WITNESS WHEREOF, each of the parties nereto nas executed this

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Agreement as of the date first above written.

CINTICHEM, _INC.

i By \ ms- gf riue ' %sa.O, e

UNION CARBIDE CORPORATION

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BY j Tit e Senior Vich--President l

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LIST OP EXHIBITS TO G-THE OPERATING AGREEMENT DESIGNATION TITLE Exhibit A Site Plan / Designation of e

Buildings Exhibit B List of Products Exhibit C List of Materials, Services and Facilities to be Supplied by Operator to Company A Exhibit D List of Materials, Services and Facilities to be Supplieo or arranged by Company A to Operator Exhibit E List of Managerial Titles '

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! v RadioChem.icals Union Carbide Corporation Sterling Forest Laboratory l P.O. Box 324 I Tynedo New Woe 10987 1 " '7F V L2 ,00 , -2 's..*.: , 2 3r ,;3 ,,ev.1,) Page 1 cf 3 tv.o v. ame .a.. - . e, e..  :- 2 .  :. . t. .o.r..-'.e. :-'3-Production .~ethod: / sego(3,7)esy,o f y e97e= 67h I.T. 6.On. 3 es7e 42 42 42 43 c = 0.51b f = 0.2373 . ?.adiatices : 3 eta (SS:.'o) G=--* (se;,,n) (MeV) 0.k5 (145) 0.Ch1 . 0.87 (~15) 0.161 1.23 (65%) 0.372 0.7ko 0.7SO 3eca (SSTc") Ge--= (85Tc")

i. .-

~ < 0.03% prd-a / f 0.1h0 Si -- r:r of :'ethod: Mclybden= tricxide (McC3 ) er =clybden..= retal pcwder is contained in a welded alu:inu capsule and irradiated in a neutron flux to SS produce Mo. Tre 88 Mc has e. ha-life cf 67.C hers a.ni as it is for=ed it deca /s to 88 c by beta emissien, which increases in a~.'.* v'. y-' u..'1 . - a s .a'. e c' - a .s ' =- . = ~- ' ' ' '- ' " - ' c ~==c'=". - 2_*. e.- 4 .*= dia'. ' c . ... - '- a-- ---- .a. =.. 's - - ans'a--=-' a"--e -' '. "  :-- '-=--: shipping container. p l s i' r a , ~ . <- ^ , 'l - b.b d [ {, . . ^ 7.' AEETOV8d ' [ C#'f . ~F: 7 :' i. ; t - i . ;.u, 4,$. , - _. u h2-99-?-2 T ? 2-19-71 (.:.ev.1) Page 2 of,3 INCApSU.*J.0IC3_ There are two sices of capsules used for irradiating Mo b to produce this product: (a)3/h"O.D., .035" van and 20" 1cng e.lu=inu=, containing 150 g Mog or 200 p Mo =etal powder. (b) 3/k" O.D., .C20" waM and 3-1/4" long alu=inum, conte.inine s0 2 cc Mob or h0 c: No metal powder. Both capsules a e cleaned s.nd degreased by placing ther in an ultra-senic bath containing trichicroethylene fcr a: least 5 minutes. Sey are re=cred Sc the bath, rinsed with E.cetene and f.ried in an oven. Each capsule is inspected to insure that it does no: cc tain ars .ar-ticles of loose metal. Each capsule is inscribed with the identifi-cation ca.rk, "MoC 2 " for rolybderu trioxide, or "M" for olybdent: metal powder, and the capsule number. The approprie.te e. 0unt (30 g= c0.5 cr 150 g: 20 5) of colb/ dent: tri-exide, which has been d-icd in a.n ove at llO*C for e.t least h hours just prier to weighing, or (LO g: =0.5 or 200 g= =0 5) cf selybdenu: cetal powder > is weighed c a bear ba % ce usin a clean weighing for each arou:t a:d is cue.ntitatively zre.:sferred := a =.reza.~ed , ' '. paper . car.sule. The tot cf each cat.sule is vit.ed clean with a Ki=rit.e t ,e 900S tissue, end covered with e. ple_stic bag to prevent contamine. tics. The capsules e.re stored in a desicce. tor until ready to be velded. Each capsule is placed in an al--*--- %t sink to a point sli-h a w'- above the level of the tewder end is sealed by .celdit:. the :lurred open end. "he integ-ity of the veld is deter = ired b~a sut'ectier the capsule > 4 ersed in water to a partial vacuu of at les.st 27" cf "s. The sealed capsule is annealed in a =cffle frnace at 325'C fer h-6 hor s. Each capsule is les.k checked in the scre --ner as stated above before it is leaded inte the reae:cr fer irradir. tics. =c.e.D _e.. ..O'. - - - . . .:_tD. . _- _n l The product required for Fridey is produced by irradia. ting the 3-1/h" long capsule in the C7 iso:cpe stringer, E cr I stack, fcr ene e;cle l (100 hrs).  ?/picany, in a 3/h" C.D. x 3-1/h" long capsule 50 g of Mo4 yields abcat 6 cries of SS Xo e.nd LO g: cf Mo =ete.1 fields abcut 12 curies of "sXo as of 1200 - Sunda"a . Se troduct rec.uired for : recess. ing at times during the reactor operating cycle is produced bf irra-dia. tion of the 20" lone cat.sules in ava.ilable in-ccre sac-' a ~ '" ons: e.g., 5 or C9 TypicaH' ", 150 g= of McCe in a 3/h" capsule irre.diated at a flux of 3.5 x 10- n/c="/see yields frc: 12-35 cries, e.nd 20C s cf Mo =ete.1 powder in a i/h" capsulea"ields 2!--70 cries > de.endinr ' upon what day it is removed frc: the core. / .v[h*..'/, / n3 n. a. m,,.

• s t." -

e v. c, ... .. w-4.,... .; em 2t....u,* 4 : c a ,, i.==.ovee .:

w. v .

o , t. 9 I. h2-99-?.2 L-'? 2-19-71 (Rev.1) Page 3 of 3 CSv. _ _=_v.. .s_.w_ _ C . . .a. C.-z..e .=_. -.G The folloeing steps are perforsed in a hot cell:

1. Tne capsule is identified end its nu ber recorded.

It is then vibrated to settle the to rder and opened by cutting with a tubing cutter.

2. .

• e .ar 3 e . _ s ...=.

- *".. e_-, . .a. d .' .. . o e n....' * =. ..ou .%. . p ~, . y'-'- etb. , ' e.a. . b o'. '. =. . ...d .e . d . .e "... e f .-' - = -., .=. 5.. _' , 2. .4 . ., container. 3 Before shipping, the poeder is =onitored with a Victoreen to cbtain an esticate of tctal radio-activity. - i 1 e,a m. . e y._ Molybda-"- *'exide (McC,) - Reagent grade poeier, meets A.C.S. specifications, Fatheson, Cola-== f and Bell "o. 'E16CO or ecuivalent. Molybda""- '~=tc.1 Neder (-325 =esh) 99.995 pure Apex ., 4. -s'. . .d a. .e. . ca.'.u' o3 ..o . .'._1.:,4 ."u, s , .'4=.d -w, .1 - w .e.,,c.- .- . ... .c.. .c a .c _.,.s s ... or eenifalent. - e ~ p v u' ' -m .3 'i:Ci n ~!' ~'*'; ? ' ' T* *' 5.iT ' " ' *?*h' " . l,,

• 7-

./ 4 c .*. m ' '/ . ' n_... ~..~'_ ~ ~ ~ ' Phosphorus-32 Catalog Number P.32.P.2 I HALF LIFE . . . 14.3 days CHEMICAL FORM . . H3PD, in 1N hcl (> 90% ortho phosphate) CONCENTRATION . . . . . . >10 mci /mi (up to 100 mci /mi on request) SPECIFIC ACTIVi-TY . . . . Carrier. free RADIONUCLIDE PURITY . . . . >99% (33 P < 1%) TOTAL SOLIDS . . . . . . < 0.05 mgemCi SHIPPING DAYS . . . . . . . Daily DECAY CREDIT. . . . . . . . Four days from day of shipment PRICE 120 mci . . . . . . . . . S 40 50 mci . . . . . . . . . 70 100 mci . . . . . . 105 200 mci . . . . . 160 500 mci . . . 275 1000 mci . . . . . . . 450 NOT FOR HUMAN USE IN PRESENT FORM esiJHs)NW . 1/71 G RadioChemiCals Union Carbide Corporation Sterling Forest Laboratory P.O. Box 324 Tuxedo, New York 10987 I10-110 . i Catalog Number SN-113.P 1 HALF. LIFE . . . . . 115 days CHEMICAL FORM . . . . . . SnCl,in 4N hcl CONCENTRATION . . . . . >30 mci /mi SPECIFIC ACTIVITY . . . . > 1.2 mci /mg (enriched target) RADIONUCLIDE PURITY . . . > 99% (exclusive of 113"!n daughter) g , , , , SHIPPING DAYS . . . . . . Daily PRICE . . . . . . . . . . 1 mC i . . . . . . . S 35 2 mci . . . . . . 60 5 mci . . . 125 10 mci . . . . . 250 25 mci . . . . . . 500 NOT FOR HUMAN USE IN PRESENT FORM i o om.mr i w;4 ;t :) s ai = v RadioChem.iCals Union Carbide Corporation Sterling Forest Laboratory I P.O. Box 324 Tuxedo, New York 10987 EXHIBIT B Paga 9 Tin-113 Indium-113m Generator Catalog Number SN 113 C 21 DESCRIPTION . . "3Sn!n a m in generators croduce '3m l-by cecay of 13Sn. The indium is obtaineo by eluting the generator witn dilute hycre. chloric acid soiution. Sterilization of tne product can be achieved by autoclave or filtration. H A LF.LI F E . . . . . . . . . . 115 days . "3Sn: 99.3 min. ' 53m in CHEMICAL FORM OF "M in . . Indium ion (in '3) in hcl YlELD . . . . . . > 90% of the theoretically available nam in t . ELUTING SOLUTION- . . . . S 25 ml of dilute hcl (pH 1.6) depending on generator size. RADIONUCLIDE PURITY . > 99.98% "> In.<0.02% usSn SHIPPING CONTAINER . . . . Non. returnable container. (Generator must be used in container or other suitaole shietdl. SHIPPING DAY . . . . . . Witnin three weeks of order PRICE . . . . . . . . 5 mci generator . S 300 10 mci generator 400 25 mci generator . . . 700 50 mci generator . 1.200 100 mci generator . 2.200 Other sizes quoted on recuest NOTE: The product solution is not tested for sterility prior to shipment, although the eluate is tested for pyrogenicity. The generator is M a sealed unit. NOT FOR HUMAN USE IN PRESENT FORM ~ 7/7 m l<en e 4 W l'i:Il e l = ~ W ~ RadioChem.icals Union Carbice Corporation Sterline Forest Laboraterv AenOn-ldd - Catalog Number Xe.133.P 1 (in returnable cylinders) H A L F.L I F E. . . . . . . . . . . . . . . . . 5.25 days ,- CHEMICAL FO RM. . . . . . . . . . . . . Elemental Xe in air (> 75% Xe) j CONCENTRATION. . . . . . . . . . . . . > 1 Ci/cc at STP , SPECIFIC ACTIVITY. . . . . . . . . . . > 10' Ci/gm Xe (no carrier added) RADIONUCLIDE PURITY. . . . . . . > 99.5% Xe-133 and Xe-133m < 0.01% l.131 1 SHIPPING DAYS. . . . . . . . . . . . . . . DAILY (Orders must be placed by noon of the day preceding shipment. For orders of more than 10 Ci, two days' notice is required.) ~ ~ DECAY CREDIT' . . . . . . . . . . . . . . Noon two days from day of shipment. (Friday shipments calibrated for noon the following Monday.) P R I C E. . . . . . . . . . . . . . . . . . . . . . . 5 3 Ci 560/Ci NOT FOR HUM AN UIE IN PRESENT FORM e 1 .4 . , , i . 3 m, . 76 R4 6:):O = RadioCfiemiCals Union Carbice Corporation Sterling Forert t.aeoratory P.O. Bon 324 Tusede. New York 10987 EXHIBIT B Page 11 Xenon-133 Catalog Number Xe.133.P.2 (in glass ampules) H A L F.L I F E. . . . . . . . . . . . . . . . . . . 5.25 days CHEMICAL FO RM. . . . . . . . . . . . . Elemental Xe gas in air (> 75% Xe) CONCENTRATION. . . . . . . . . . . . > 500 mci /cc at STP SPECIFIC ACTIVITY. . . . . . . . . . . > 10'Ci/gm Xe (no carrier added) RADIONUCLIDE PURITY. . . . . . . > 99.5% Xe-133 and Xe.133m < 0.01% l.131 SHIPPING DAYS. . . . . . . . . . . . . . DAILY (Orders must be placed by noon of the day preceding shipment) D ECA Y C R ED I T. . . . . . . . . . . . . . . Noon two days from day of shipment. (Friday shipments calibrated for noon the following Monday.) P R I C E. . . . . . . . . . . . . . . . . . . . . . . 1000 mci 5150 i 2000 mci 5210 PACKAGING CHARGE. . . . . . . . . There will be a packaging charge of 525 for each ampule shipped. No more than 2.000 mci will be shipped in one ampule. NOT FOR HUMAN USE IN PRESENT FORM O, -. =s v RadiOChem.icals Union Carbide Corporation Sterling Forert Labcratory P.O. Box 324 . EXHIBIT 3 Pags 12 4 i l NEUTRON TRANSMUTATION DOPING OF SILICON SERVICES The customer prescribes specifications with each order. l 6,^ 9, F e e EXHIBIT B Page 13 Noutron irradiction SorviCos Neutron irradiations are performed in the Union Caroide Nuclear Reactor (UCN R), a light water moderated and cooled reactor fueled with hignty enriched uranium. The UCNR operates weekly at a power level of 5 mega-watts affording a wide range of neutron fluxes up to 1 x 10"n/cm2;3ee, All samples to be irradiated must be fully described prior to irradiation and each sample must be evaluated for possible hazards to personnel or ecuipment. This evaluation is usually done by UCNR staff personnel with the assistance of the irradiation sponsor. This evaluation and approval in most cases can be accomplished in a few days. However, approval of complicated or hazardous irradiations requiring auxiliary control or safety equipment will take longer. ~' Samples to be irradiated must be sealed in quartz or 25 aluminum for irradiation in the reactor core or in polyethylene for irradiation in the pneumatic conveyor system. The encapsulation is performed in general by UCNR personnel. Irradiation may produce physical and chemical changes in sample m&terials, particularly organic. materials, which sometimes cannot

be anticipate

:. Union Carbide does not accept responsibility for camage to samples as a result of irradiation.

The price of neutron service irradiations varies with sample size, neutron flux, duration and complexity of irradiation. Price cuotations can easily be obtained by telephone or mail from UCNR operation's personnel. I 7/ M. c m.n . . se n,.m v Nuclear Products And Services Union Carbide Corporation . Sterime Farent Laboratern EXHIBIT C List of Materials, Services and Facilities to be Supplied by Operator to Company A

1. Health Physics / Environmental Services

'a . Film badge and docimeter monitors

b. Routine surveys

c. Effluent monitoring and reporting

d. Emergency support services

e. General safety program (OSHA)  !

f. EPA /DEC regulatory affairs

2. Hazardous Waste Disposal Services (Radioactive & Other)

a. Storage s . . .

~b. Labeling and monitoring for shipment

c. Burial services

d. Incineration

3. Licuid Waste Disposal Services

a. Water evaporation

b. Solidification of concentrated radioactive liquids

c. Storage and monitoring for release to environment

4. Technical Services

a. Radiopharmaceutical dose calculations

b. Nuclear / Chemical engineering services as requested

5. Manipulator Maintenance

a. Parts inventory

b. Repair and routine maintenance

EXHIBIT C (Continued)

6. Quality Assurance Services on Uranium Accountability

7. Radiochemical Products & Services

a. Isotopes for pharmaceutical production

b. Isotopes for research and development

c. Hot cell services d .: Reactor services i

i h r EXHIBIT D List of Materials, Services and Facilities to be Supplied or Arranged by Company A to Operator FACILITIES AND UTILITY SERVICES

1. Electricity

2. Steam

3. High Pressure Air

'4. Hot and Chilled Water for Air Conditioning

5. Natural Gas and Gasoline

6. Domestic Hot and Cold Water and Demineralized Water (for Nuclear Reactor Purposes)

- 7. Sanitary Waste Disposal

8. Liquid Process Waste Piping, Hold Tanks, Hold Tank Monitoring and Dumping 9.*- Trash' Disposal and Janitorial Service

10. Landscaping and Ground Maintenance, Road Service, Parking, Snow Removal, Storm Drain Maintenance

11. Fire Protection, Including Maintenance of Fire Main, Hydrants and Sprinkler Service

12. Telephone Service and Equipment Maintenance.

13. Plant Site Security, Including Guards During Non-Business Hours and Maintenance of all Fencino

14. On and Off Plant Site Environmental Monitoring Pursuant to Governmental Recuirements. Company A Shall Also Provide the Aforesaid facilities and utility services for the i

Operation of Buildings 3 and 4 as shown on Exhibit B *

- SERVICES

1. Purchasing

2. Cost Accounting and Reports:

a. Sales (shipment) reports l b. Cost summary sheets

~ EXHIBIT D -(continued)

c. Inventory reports

d. Monthly cost analysis

e. Monthly O&R

3. Order Entry

4. Traffic & Distribution

5. General Maintenance

a. Electricians / electronics

b. Carpenter c.- Machine shop

d. Mechanical / electrical engineering

e. Maintenance of drawings

f. General maintenance parts inventory and equipment

~.~.

6. Emplovee Relations (except salary)

7. Warehousing / Materials Handling

8. Stockroon

9. Cafeteria

10. Library

11. Site Security

a. Fire watch

b. Emergency response to intrusion

c. Surveillance during shutdown periods

12. Switchboard,. Receptionist, Owip, Copying, Mail and Audio Visual Services

13. Word Processing

14. Professional Development Training

15. FDA Regulatory Affairs

t EXHIBI? D (continued) 1

16. Travel Services 17.

Computer Services (time sharing terminals & telephone lines)

18. Analytical

a. Reagent preparation

b. NTD measurements

c. Uranium measurements for calibration of Q.C. systems

d. Miscellaneous analytical work

19. Quality control

a. Assay of radiochemical product

b. Assay of Uranium process r.aterials and inventory

c. Miscellaneous radiometric assays for Reactor & Hot Lab (i.e., Uranium in pool water and custom isotopes) 8 1

e 4 I r- V EXHIBIT E List of Managerial Titles Business Manager, Radiochemicals Manager, Health, Safety, and Environmental Affairs Manager, Nuclear Operations

• Supervisor, Radiochemical Production t

Manager, Radiochemicals Process Engineering Senior Development Scientist

• To be deleted from list effective date of transfer to Cintichem, Inc. upon obtaining of Special Nuclear Materials License.

- UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In The Matter Of: ) Docket No. 50-54 ) UNION CARBIDE SUBSIDIARY "B" INC. ) Facility Operating (Sterling Forest Research Reactor) ) License No. R-81 AFFIDAVIT OF LIDO L. PUCCINI 4 I, Lido L. Puccini, affirm under penalty of perjury that the following is true and accurate to the best of my knowledge, information and belief and is based on my personal knowledge or on information contained in the records of Medi-Physics Inc., a Delaware corporation, and Cintichem, Inc., a Delaware corporation.

1. I am secretary of Medi-Physics, Inc., and its wholly-owned subsidiary, Cintichem, Inc., which, along with Union Carbide Subsidiary "B", Inc. (Sub B) a Delaware corporation requests that the Facility Operating License for the Sterling Forest Research Reactor be transferred from Sub B to Cintichem for the purpose of continued ownership and operation of the Sterling Forest Research Reactor by Cintichem.

2. This affidavit is in support of the attached application for withholding of documents contained in the license transfer application for Facility Operating License No. R-81 in the matter of Union Carbide Subsidiary "B", Inc.

3. Medi-Physics, Inc. and Cintichen, Inc., are privately held corporations.

4. The financial information on Medi-Physics, Inc. and Cintichem, Inc. contained in Attachment 1 to the license transfer application has been held in confidence by the owner companies.

5. The financial information in Attachment 1 is customarily held in confidence by privately-held companies to protect their competitive market position.

6. The information has been submitted to and received by the Commission in confidence.

7. Tne financial information in Attachment 1 is not available in public sources and is not known to competitors of Medi-Physics, Inc. and Cintichem, Inc.

8. Release of the data in Attachment 1 could result in a competitive advantage to other firms in the pharmaceutical manufacturing market, thereby substantially harming the market position of Medi-Physics and Cintichem.

9. This information could not be property acquired by

,, others. / AN Lido L. Puccini Secretary, Cintichem, Inc. December 13, 1984 STATE OF NEW JERSEY ) ) ss: COUNTY OF ESSEX ) Refore me, a Notary Public for the County of Essex, personally appeared Lido L. Puccini who, being duly sworn, stated that he is Secretary of Cintichem, Inc., that he has read the foregoing " Affidavit of Lido L. Puccini", and that the information and statements contained therein are true and correct to the best of his knowledge and belief. M . '42/ # P-4% / hat h,4% Notayy Public ROSEMARY MARTINI NOTARY PUBLIC OF fit.'! jut:iy MyCommission Empires f.taj 11,1M My Commission Expires: T */l-[ b ..___._______..___m_ . - ( t. UNION CARBIOE CORPORATION OLD RIDGEBURY ROAD. DANBURY, CT 06817 J M REHFitELD tattutevt vict Pats.ote T May 3, 1983 Executive Director for Operations U.S. Nuclear Regulatory Comission Washington, D.C. 20555 Attention: Mr. William J. Dircks Re: Facility O erating License No. R-81 (p'NRC License") Gentlemen: Pursuant to a deliberate plan of divestitures, Union Carbide Corporation completely sold all of its Medical Products businesses as of May, 1981. The only remaining activity is the operation of a reactor at Sterling Forest, New York (". Reactor") for the sole commercial benefit of Medi-Physics, Inc., ("Medi-Physics"), a wholly owned subsidiary cf Hoffmann-LaRoche, Inc., pursuant to an Operating Agreement dated April 10, 1981 (" Operating Agreement"). By the terms of Paragraph 9 of the Operating Agreement, Union Carbide has the right to decomission the Reactor at the sole expense of Cint'ichem, Inc., a wholly owned subsidiary of Medi-Physics (which financial obligation is in turn guaranteed by Hoffmann-LaRoche), upon the expiration of the Operating Agree-ment (April 9, 1987), unless the NRC License is transferred to Cintichem, Inc. or an IRC licensed third party prior to that time. This letter will confirm Union Carbide's firm intention, on its behalf and as sole stockholder of Union Carbide Subaidiary B, Inc., the current holder of the NRC License, to decommission the Reactor forthwith upon the expiration of the Operating Agree-ment, ruly yours, 4/ + .- M J.lO Rch cid Execu- Vice President \f 2 g t o 3 '_e_ y%w z- - FEB I 41985 Docket 70-687 Union Carbide Corpnration Sterling Forest Research Center Tuxedo, New York 10987 and Cintichen, Inc. P. O. Box 816 Tuxedo, New York 10987 Gentlemen: SUnJECT: REQUEST FOR WITHHOLDING INFOR?tATION FR0" PURLIC DISCLOSURE By your application and affidavit dated Decenher 12, 1984 you submitted I a .loint ' application for transfer of Special fluclear fiaterial License No. SNft-639 and requested that a portion be withheld from public' disclosure pursuant to 10 CFR ?.700 You stated that a portion of the submitted inforration should he considered exempt from nandatory public disclosure for the following reasons:

1. The infomation contained in Attachment 1 is confidential and not available to competitors of Cintichen and Pedi-Physics.

2. Its release could result in a competitive advantage to other fims in the phamaceutical manufacturino market.

. 3. The financial infomation is customarily held in confidence by privately held conpanies to protect their competitive narket position. 4 The information has been subnitted to end received by the Commission in confidence. S. The financial infomation is not available in public sources and is not known to competitors of Medi-Physics, Inc. and Cintichem, Inc. ,

6. Pelease of the data could result in a competitive advantage to other .

. fims in the pharmaceutical manufacturing market, thereby substantially

• haming the market position of Medi-Physics and Cintichem.

7. This infomation could not be property acquired by others.

t/c have reviewed your application and the material ba' sed on the requirements and criteria of 10 CFR 2.790 and, on the basis of you statenents, have am+m 4-ma inst +sm , m ittma i mem - t4mm ,mopt +m sm m e tssmu emm+,im, o ,,ci) . . . . .. .p ... ry r.o p r. .i. e. c.o.mme..r.c..i.a.l.. .t. ..... .a.... . i. .n. f. .o. .m. .....a......................

t. .i. .o. n. .. ..................... ..................... ...................

URN!Wff .. .. ................... .................... ..................... . h.... ............y .................... .................... .................. eum em A A man a.sh sem sput .mu. .$ ..e. t

• P se e () g q , y a m .

e ** == . .* * . .~. . . . . _ o 1 b linion Carbide Corporation and -  ?- Cintichem, Inc. FEB 14 L985 Therefore the portion of the submitted infomation marked as proprietary will be withheld from public disclosure pursuant to 10 CFR ?.790(b)(5) and Section 103(b) of the Atomic Energy Act of 1954, as amended. - Withholding from public inspection shall not af fect the right, if any, of persons properly end directly concerned to inspect the documents. If the need arises, we m'ay send copies of this infomation to our co'nsultants working in this area, t!e will, of course, ensure that the consultants have signed the appropriate agreements for handling proprietary infomation. If the basis for withholding this infomation from public inspection should change in the future such that the infomation could then he made available for public inspection, you should promptly notify the f:RC You should also understand that the f4RC may have cause to review this detemination in the future, such as, if the scope of a Freedom of Infomation Act request c includes your infomation. In all review situations, if the PRC rakes a detemination adverse to the above, you will be notified in advance of any public disclosure. Si ncerely, n .. , . - , .s ; , y... ..._, l' eland C. Rouse, Chief Advanced Fuel and Spent Fuel Licensing Branch Division of Fuel Cycle end t'aterial Safety ~ Distribution: Please return concurrence Central File copy to FRrown SS 396 Docket 70-687 4 fMSS R/F FCAF R/F PDR LCRouse ATClark HBernard, C@ MSN LCRouse FBrown (LA file) EShoemaker, ELD l l1, Urmo, ELD ) )) j 6h"P f cme > y ....FC ............... ..... ................. ... ..................... ........... ..... . .FCj.A w .... ... h ............. . .. ........ " '> AIC.1 ark:. fib. ..E3h0.cs.%r... . LU aus a . .. . ... . .. ............ ..... ..................... ..................... ................... muy 74205 .e . fel.j ..e...e t/ e.....e.... ... . . ...ee..e.e.....e..... * * * * * * * * * . * * . . . . * * . * **..........*..... ..ee. .}. . .f befhh.e..e.... .A. . . e t e.*=. . c. , t . -* ,.

c. s% mg.

. _ .o. . .% - e p . es