ML20137E586

Requests Commission Review of Proposed Issuance of License to DOE for Export to Canada of Nuclear Grade Graphite & Depleted U in Support of Joint Program to Develop Atomic Vapor Laser Isotope Separation (Avlis) Feed Process

ML20137E586
Person / Time
Issue date:	02/27/1997
From:	Stoiber C NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-97-049, SECY-97-049-R, SECY-97-49, SECY-97-49-R, NUDOCS 9703280097
Download: ML20137E586 (9)

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...............ma is in POLICY ISSUE (Notation Vote)

February 27, 1997 SECY-97-049 f.QB:

The Commissioners flQti:

Carlton R. Stoiber, Director

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Office of International Programs

SUBJECT:

PROPOSED LICENSE TO EXP0RT GRAPHITE AND DEPLETED URANIUM TO CANADA FOR AVLIS FEED CONVERSION PROCESS DEVELOPMENT (XMAT0393)

PURPOSE:

To request Commission review of the proposed issuance of a license to the Department of Energy (DOE) for the export to Canada of nuclear grade graphite and depleted uranium in support of a joint program to develop an atomic vapor laser isotope separation (AVLIS) feed conversion process.

DISCUSSION:

On December 23, 1996, DOE applied for a license on behalf of Lawrence Livermore National Laboratory to export to Cameco Corporation in Canada one graphite vessel containing 41 kilograms of nuclear grade graphite and other associated materials, including approximately 70 kilograms of depleted uranium (Attachment 1). The U.S. Enrichment Corporation and Lawrence Livermore are working with Cameco in the development of a process for the conversion of uranium tetrafluoride to uranium metal for use in the production of feed material for the AVLIS process.

Cameco will use the material for chemical and metallography analysis.

Although the amounts of graphite and depleted uranium proposed for export are small, the case is being referred to the Commission, as specified in 10 CFR 110 A0(b)(4), because the end use is related to isotope separation.

DOE administers U.S. controls on foreign transfers of U.S. nuclear technology under its regulations in 10 CFR Part 810. DOE believes that the data sharing arrangement with Cameco on conversion of uranium tetrafluoride to uranium metal, while associated with the AVLIS process, does not constitute engaging in uranium enrichment activities outside the United States and, therefore, does not require specific DOE authorization. DOE also does not consider the

Contact:

NOTE: TO BE MADE PUBLICLY AVAILABLE WHEN Betty Wright, OIP THE FINAL SRM IS MADE AVAILABLE i

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The Comr.issioners 2-data itself.to be sensitive nuclear technology.

DOE's views were accepted by the other Executive Branch agencies.

The' Executive Branch, by letter of January 22, 1997 (Attachment 2), recommends issuance of the license, noting that, as a party to the Nuclear Non-Proliferation Treaty, Canada accepts International Atomic Energy Agency safeguards on all of its peaceful nuclear activities and pledges not to produce or otherwise acquire any nuclear explosive device.

The Executive Branch concludes that this satisfies Criteria (1) and (2) for exports of nuclear. components, substances and items under Section 109b of the Atomic Energy Act, as amended. The Executive Branch advises that the no retransfer without prior U.S. consent criterion has been met by receipt of generic assurance letters from Canadian authorities. Accordingly, the Executive -

Branch judges that the subject export will not be inimical to.the U.S. common defense and security and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.

In regard to the depleted uranium, the Executive Branch notes that Section 64 of the Atomic Energy Act, as amended, allows such export of source material to be authorized by NRC based on a finding that it is not inimical to the 4

interests of the U.S.

RECOMMENDATION:

The staff concludes that the proposed export would not be in-s al to the U.S.

common defense and security and meets the export licensing cru.ria of Section 109(b) of the Atomic Energy Act of 1954, as amended.

Accordingly, the staff recommends that the Commission authorize the issuance of the requested license

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to DOE.

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

1. Appl. dtd 12/23/96

2. DOS ltr dtd 1/22/97 Commissioners' comments or consent should be provided directly to the Office of the Secretary by COB March 14, 1997.

Commission Staff Office comments, if any, should be submitted to the Com=issioners NLT March 7. 1997, with an information 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 expected.

DISTRIBUTION:

Commissioners OCC O1G 01P

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Ms. Betty L.: Wright, Licensing Officer U.S. Nuclear Regulatory Commission-

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Office of International Programs

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Shipment of AVLIS Materials to Cameco l

Subject:

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Dear Ms. Wright:

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The Department of Energy (DOE) requests the assistance of the U.S.

Nuclear Regulatory Commission to process /obtain the license -to export nuclear material and equipment, subject as above, generated under the U. S. Enrichment Corporation's (USEC) Atomic Vapor Laser Isotope Separation Program (AVLIS) at the DOE's Lawrence Livermore National 1

Laboratory (LLNL). USEC has requested that the action be completed as soon as possible because ofits high priority and impact on the project's schedule for plant deployment.

As you know, the AVLIS project was transferred from DOE to USEC under the Energy Policy Act of 1992.

i Stc5 members from USEC and LLNL are working with Cameco Corporation in Port Hope, Ontario, Canada in the continued development of the AVLIS feed conversion process.

This process converts uranium tetrafluoride to uranium metal to be used in the production of feed material for the AVLIS process.

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To support this ongoing work, Cameco is requesting from the AVLIS i

Program six drums containing by product materials from the last demonstration run for contmuous reduction of uranium tetrafluoride.

These drums contain the following:

One drum contains the graphite vessel (105 kgs) containing approximately 47 kgs of depleted uranium.

Four drums contain approximately 270 kgs of by-product 50 mole 9 Mg Cl,-50 mole RMgF, salt with 4 kgs of deplgtgugngmg 9g d10 03Al3333 1

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Also, one drum contains approximately 35 kgs of by-product 50 mole %

Mg Cl,-50 mole % MgF, salt with 0.5 kgs of depleted uranium.

It also contains two one gallon cans of 23 kgs of depleted uranium tetrafluoride.

Cameco will cut the graphite vesselin half and return one half to LLNL for additional metallography and chemical analysis. Also, the MgCl, - MgF, salt will be used by Cameco for chemical and metallographic analysis and the salt will also be used in the development of a salt by-product treatment process to decrease the volume of low-level-waste. The uranium tetrafluoride will-be used in the ' analytical and treatment process development of U-AVLIS feed conversion process. It is assumed that the majority of salt and uranium by product materials will be used in the analytical and treatment process development. testing. Any resulting waste products and the graphite vessel remains will be appropriately disposed of by both Cameco and LLNL in accordance with applicable local, federal, state and Canadian regulations.

If there are any questions, please call me at (510) 424-4562. Thanks for your assistance.

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- John W. Lacey DOE AVLIS Manager cc:

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2000 January 22,1997 Mr. Carlton R. Stoiber Director, Intemational Progems United States Nuclear Regulato*y Commission Rockville. Maryland

Dear Mr. Stolber:

4 refer to toe letter from your office dated December 31,1996, requesting the views of the Executive Branch as to whetnec issuance of an export heense in accordance with the application hereinafter described meets the applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Prohferation Act of 1978:

s NRC No. XMAT0393 - The Department of Energy Oakland Operations Office has applied on behalf of Lawrence Livermore National Laboratory (LLNL) for authorization to export to Canada one graphite vessel weighing 41 kilograms, 69.66 kgs of depleted uranium and 320.16 kgs of magnesium fluoride and chloride.

Cameco Corporation of Port Hope, Ontario, will cut the graphite vessel in half, retum one half to LLNL for metallography and chemical analysis and perform similar analyses on its half in support of a joint program for development of an atomic vapor laser isoptopic separation (AVLIS) feed conversion process whereby uranium tetra 3uonde is converted to uranium metal.

It is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security of the United States, and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non Prohferation Act of 1978.

As a party to the NPT, Canada has committed itself to maintain IAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device. Itis therefore the judgment of the Executive Branch that Criteria (1) and (2) for exports of nuclear components, substances and items (including nuclear grade graphite) under Section 109b of the Atomic Energy Act, as amended, are met. The remaining criterion, agreement not to retransfer any U.S.-supplied component, substance or item without prior U.S. consent, has been satisfied by the receipt of generic assurance letters from the Embassy of Canada dated July 7,1978 and December 15,1978, the subject of our letter to you dated February 5,1979.

Section 64 of the Atomic Energy Act, as amended, authonzes exports of source materist such as depleted uranium for non-nuclear fuel cycle use without being subject to a section 123 agreement for cooperation. Although the proposed export is in support of an AVLIS development project, the depleted uranium will not be introduced into the nuclear fuel cycle but will be disposed of as waste following metallograph'i anrJ analysis.

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

Sipcerely, N

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Richard J. K. Stratford trirector Office of Nuclear Energy Affairs 0 Nh l h m G r1 Y$