ML20150C259

Responds to 880609 Request for Record of Decision Re Alchemie Request for Exemption from 10CFR50.10(c) Requirements for CP for Erection of Temporary Storage Facility.Documentation Provided

ML20150C259
Person / Time
Site:	05000604
Issue date:	06/30/1988
From:	Clark A NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Drey L AFFILIATION NOT ASSIGNED
References
NUDOCS 8807120381
Download: ML20150C259 (2)

Text

,

SVY f JUN 3 o 1988 Mrs. Leo Drey 515 West Point Avenue University City, M0 63130

Dear Mrs. Drey:

Your letter to our public affairs office, dated June 9,1988, has been forwarded to me for reply. In your letter you requested a copy of our "record of decision regarding AlchemIE's request for an exemption to the 10 CFR 50.10(c) requirements for a construction permit for the erection of a temporary storage facility at Oliver Springs, Tennessee." I am enclosing copies of relevant correspondence related to the AlChemIE request as follows:

1. Letter from Dennis Bell (AlChemIE) to the Nuclear Regulatory Commission (ATTH: Hugh L. Thompson) dated February 22, 1988, which, in part, requested an exemption under 10 CFR 50.12(a)(1) and (2) from the requirements of 10 CFR 50.10(c).

2. Letter from A. Thomas Clark, Jr. (NRC) to AlChemIE, ATTN: Dennis Bell, dated March 23, 1988, requesting additional information.

3. Letter from Dennis Bell to the Nuclear Regulatory Commission (ATTN: Hugh L. Thompson, Jr.), dated March 31, 1988, providing additional information per the request in 2. above and attaching a letter from the Town of Oliver Springs regarding the industrial park which is the proposed site of one of AlChemIE's facilities.

10 CFR 650.10(c) permits, without the need for formal authorization, commencement of construction related activities if any of the following conditions are met:

"(1) Changes desirable for the temporary use of the land for public recreational uses, necessary borings to detennine foundation conditions or other preconstruction monitoring to establish background information related to the suit-ability of the site or to the protection of environmental values;

"(2) Procurement or manufacture of components of the facility; dnd

"(3) With respect to production or utilization facilities, other than testing facilities, required to be licensed pursuant to section 104a or section 104c of the Act, the construction of buildings which will be used for activities other than opera-tion of a facility and which may also be used to house a facility. (For example, the construction of a college it - i oratory building with space for installation of a training reactor is not affected by this paragraph.)"

l 8807120381 880630 PDR ADOCK 05000604 A ppy 1

Prs. Leo Drey 2 JUN 3 01988 As you will note from a review of the enclosed correspondence, the applicant has demonstrated that the provisions of 10 CFR 650.10(c) have been met, and, thus, it was not necessary for the staff to grant an exemption.

Sincerely,

,Y W W A. Thomas Clark, Jr.

Advanced Fuel and Special Facilities Section Fuel Cycle Safety Branch Division of Industrial and Medical Nuclear Safety

Enclosures:

As Stated DISTRIBUTION:

Docket File 50 603'& 50-604'::PDR A NRC File CenteF IMSB R/F NMSS R/F IMAF R/F IMNS Cenfral File FLBrown BBordenick LCRouse GATerry FIngrahm ATClark

/ ,

0FC : IMA :I IF :I J;F f :0GC (tIg V j

[ .f . . . . . . . . . , ......... . ...........

l NAME: ATClark:1g

.................... . .......... 3, . Brown  :

U.db5( :8Bordenick :LI se j

....................../................

.DATE:

. . . . . .6/z3/88 . . . . . . . . . . .:6/

. . . . . . . . . . . . ..6@/88 . . . gf 8 8 . :6/})/88 .. ..

, p. 88............

l

', .\/

j

,-_3__.

1 l

A K h e m / '\ %IE,Inc.

M Chemical isotope Enrichment, Inc.

DOCKET NO. 50-604 February 22, 1988 Nuclear Regulatory Commission Document Control Desk Office Nuclear Material Safety and Safeguards Washington, D.C. 20555 ATTN: Mr. Hugh L. Thompson, Jr.

SS396-MNSS Docket Material Gentlemen:

In our original application dated November 17, 1987, for a permit to construct a stable isotope enrichment facitity an exemption was requested to allow A1ChemIE to start const. uction of a temporary non-nuclear storage facility. This work will entail construction of a temporary f acility to house classified gas centrifuge components until they can be utilize in a permanent production facility. Work on the permanent production f acility will not start until a construction permit is granted by the NRC.

AlChemIE's approach to this issue is two-fold, and we request that each issue be considered. First, AlChemIE believes that we are entitled to an exemption from the dictates of 10CFR50.10(c) for the following reasons:

1. AlChemIE's business, while utilizing centrifuge technology, involves enrichment only of stable, non-radioactive isotopes. AlChemIE will not possess, nor be licensed to possess, any special nuclear materials.

2. Special situations abound in the AlChemIE project. An NRC license is necessary only because under the Atcmic Energy Act of 1954 centrifuge machines, by their capability to enrich uranium, are defined as production facilities.

po -> * , -

3 '

g OVP i )) Enclosure 1 Pine Ridge C#ce Park, Suite 20 B 702 lilinois Ave., Ook Ridge, TN 37830 (615) 482{l029

' .. r Nuclear Regulatory Commission February 22, 1988 Page 7

- 1

3. A1ChemIE operations, by definition, pose no radiological hazards.

... In order to accommodate Department of Energy requirements  :

for removal of classified materials from the DOE /GCEP l facility in Portsmouth, Ohio, AlchemIE must have a secure storage space. This necessary space is of a temporary character, housing classified components until they can be installed on line. The components of the centrifuge machine cannot unless assembled in cascade arrangement, enrich uranium.

5. The intent and purpose of 10CFR50.10(c) do not contemplate a project which is not enriching or possessing special nuclear materials. A1ChemIE, therefore, is appropriately situated to be exempted from said requirements.

Secondly, even if A1ChemIE is not granted an exemption, we feel that said regulations exclude from their purview the type of preliminary construction activities contemplated by A1ChemIE.

A1ChemIE seeks to do preliminary . site preparation. This is to be done in conjunction with activities by the Town of Oliver Springs to develop a new industrial park. Proposed A1ChemIE activities will consist of site work, construction of temporary storage facilities and fencing. All activities are redressable, ,

and all activities contribute to the development of the new )

dndustrial park. -

In further support of this request, it is also pointed out that:

1. A1ChemIE is attempting to obtain a construction permit in May 1988. The early construction would occur from approximately March 15, 1988 until the above CP date.

During this time period A1ChemIE will not have possession of any classified centrifuge components.

2. The centrifuga machines are shipped disassembled with non-classified components stored at a location different from the classified components. Assembly of a machine (s) in the storage facility is virtually impossible in that a overhead crane with approximately a 100 ft lift capability is needed. The storage facility will be 60 ft high. In other words, the construction undertaken cannot, by its nature, function as a production facility.

3. Contractural commitments with DOE require shipments of classified components to start on epproximately September 1, ,

I 1988. An early construction of the storage facility is required to meet this commitment.

.--.- -.-.-.-.--. -.---_.-.-._.--- _.-_....- _ _ - J

- . og

~

s Nuclear Regulatory Commission February 22, 1988 Page 3

4. The site upon which the storage facility is located is in a general industrial park being developed by the Town of Oliver Springs.

In recognition of the above it is requested that under 10CFR50.12(a) (1) and (2) that an exemption be granted. Your concurrence with this request is required by March 11, 1988.

Should you have any questions or require additional information, please contact Mr. Stephen Irving or Mr. W. A. Pfeifer at A1ChemIE. Thank you for your continuing support of A1ChemIE's efforts.

Very truly yours, ALCHEMIE, INC.

47" .&

Dennis L. Bell Chief Executive Officer DLB/WAP/ast j

l

. Docket No. 50-604 MAR 2 31938 All Chemical Isotope Enrichment, fnc.

ATTN: Mr. Dennis Bell Chief Executive Officer Pine Ridge Office Park, Suite 202-B 702 Illinois Avende Oak Ridge, TN 37830 Gentlemen:

In your letter of February 22, 1988, you requested "under 10 CFR 50.12(a)(1) and (2) that an exemption be granted" in recognition of ces tain conditions enumerated in your letter, 10 CFR 550.10(c) prevides that "no person shall effect comencement of construction of a production or utilization facility subject to the provision of $51.20(b) of i

(Title 10] on a site on which the facility is to be operated until a construction l pemit has been issued." While your letter cites a number of reasons you believe warrant an exemption from the requirement for a construction permit before you commence certain construction activities, there is additional infonnation necessary for us to consider your request.

First, it is important to identify specifically the various construction activities you intend to carry out initially. It is not clear from your letter that all of the activities is definedare encompassed in 10 CFR 50.10 by)the term "comencement (c (1) through of construction" (3). In this connection, as that tenn you should specifically address whether 10 CFR 50.10 (c) is applicable to your activities.

Your letter indicates that the site of the temporary storaga facilities is in a general industrial park being developed by the Town of Oliver Springs. It would be helpful to have a letter from the Town to this effect indicating that the site is being developed independent of AlchemIE's proposal to construct and operate the permanent facility.

Further, your letter indicates that the si'te activities are redressable. You should provide further information about how the early site activities under consideration could be redressed if the temporary facility were constructed, but construction of the permanent facility was not authorized.

If you have any question regarding this matter, please call me at (301) 492-0697.

Sincerely, Original Signed By:

A. Thomas Clark, Jr.

dvanced Fuel and Special Facilities Section Fuel Cycle Safety Cranch

'^$

g g gp j Enclosure 2

p; .,' f'!, D Ay

/ 2 o '/4 -

4479 r AKhem$& IE,Inc.

AJi Chemical isotope Enrichment, Inc. [g7 _g March 31, 1988 9 q T

Docket No: 50-604 4

U. S. Nuclear Regulatory Commission #

4 ,

Document Control Desk 2 gpM Og j Office Nuclear Safety & Safeguards d; -

Washington, D.C. 20555 )p C)

Attention: Mr. Hugh L. Thompson, Jr. j 55396-MNSS Docket Material . f' t ,

- . = -

Reference:

NRC letter dated Me.rch 23, 1988, A. Thomas Clark, Jr. to AlChemIE, Inc., D. L. Bell.

Gentlemen:

The above referenced letter requests that additional information be provided by AlChemIE in support of our request for an exemption from the requirement of obtaining a construction permit prior to starting construction activities on a temporary storage area. The following provides the information requested in-the third, fourth, and fifth paragraphs of the referenced letter.

In response to the third paragraph the specific activities to be undertaken relative to the construction of the storage facilities would be site grading, pouring of two slabs for classified and unclassified equipment storage, construction of a steel framed building with aluminum siding and roof for classified equipment storage and a perimeter security fence. In 10CFR50.10(c) the proposed initial construction activity would be permissible under paragraph (3).

In response to your request contained in the fourth paragraph of the referenced letter, please find attached a letter from the Town of Oliver Springs. This letter confirms the Town's intent to develop the site as a general industrial park independent of AlChemIE's activities.

l l

1 2 4191 J-, n - ,i.>-a ~

g g a 'y // a / D i J Enclosure 3 Pine Ridge Office Park Suite 202-8 702 lilinois Ave. Ook Ridge. TN 37830 (615) 482-0029

,nXAX5

Mr. Hugh L. Thompson, Jr.

March 28, 1988' Page 2 In response to the fifth paragraph it can be pointed out that in the event that the proposed A1ChemIE facility was not constructed at this sito the storage areas could be sold to another private corporation locating in the industrial park. In addition the storage areas could be returned to their original use as pasture land by removing the storage building, the concrete slabs and the fencing.

Should you have any questions or require additional information, please call Mr. W. A. Pfeifer at A1ChemIE.

Very truly yours, ALCHEMIE, INC.

C[

Dennis L. Bell Chief Executive Officer DLB/bjc cc: A. Thomas Clark. Jr./NRC

E Stanley E. Justice,Jr.

3I'Y '

The Town of O1iyer Springs atneiniEs P.O. Box 303 Chuck Akorn Joseph Van flook Oliier Springs Tennessee 37M0 J.c. Disis Judge / Recorder (615)435 7722 sam D ,is Ed Kelley Virginia Crisp March 30, 1988 cebert stitchell Treasurer Ralph % ibon Mr. A. Thanas Clark, Jr.

Advanced Fuel & Special Facilities Section Fuel Cycle Safety Branch Nuclear Regulatory Ccmnission 1717 H Street, N. W.

Washington, D. C. 20555

SUBJECT:

Docket No. 50-604; Town of Oliver Springs Industrial Park Dear Mr. Clarks Reference is made to your letter of March 23, 1988 to Mr. Dennis Bell, Chief Executive Officer, All Chemical Isotope Enrichnent, Inc., re-questing that the 'Ibwn of Oliver Springs respond to the issue of the Industrial Park.

This letter is intended to respond specifically to the fourth paragraph in which you state the following, r...It would be helpful to have a letter frcm the Town to this effect indicating that the site is being developed independent of AlChemIE's proposal tc constrtrt and operate the permanent facility."

Since 1982 when the Town's first industry (UPS) located here, the Town has been working to develop an industrial park which we have ccme to call "The Andy Justice Industrial Park." This effort will continue whether A1ChemIE is a tenant of that park or not. However, it should be understood that the AlChemIE ccnmitment to locate its facility in  ;

our Industrial Park is the largest ccumitment to date and the second largest private ccnmitment to the Anderson County.

Once again, the site selected by AlChemIE will be developed independent of AlChemIE's decisions.

Sincerely, Hcmard L. Elliott Town Administrator HE/jg l

l l

l l

_nb ,,, -

c_ A.3 7 // O / /[ / r Oli,,, &.i.,,, t4, 1U,,1,.. .A.,L., ./ 1 . L L../.,, C...iJ.,