ML20198H393

Advises That Encl Draft Papers Rev to NRC Safeguards Design Basis Threat & Comparison of Agency Response to Truck Bomb Threat in Us Contain Confidential Natl Security Info.W/O Encl

ML20198H393
Person / Time
Issue date:	09/26/1984
From:	Brady R NRC OFFICE OF ADMINISTRATION (ADM)
To:	Burnett R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20198H337	List: IA-85-534, Advises That Encl Draft Papers Rev to NRC Safeguards Design Basis Threat & Comparison of Agency Response to Truck Bomb Threat in Us Contain Confidential Natl Security Info.W/O Encl ML20198H332 ML20198H345 ML20198H351 ML20198H368 ML20198H374 ML20198H393
References
FOIA-85-534 NUDOCS 8601310018
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{{#Wiki_filter:. / "4 UNITED STATES -t NUCLEAR REGULATORY COMMISSION g j WASHINGTON D.C. 20555 \\.....+/ SEP 2 61984 MEMORANDUM FOR: Robert F. Burnett, Director Division of Safeguards, NMSS FROM: Raymond J. Brady, Director Division of Security, ADM

SUBJECT:

CLASSIFICATION REVIEW 0F DRAFT ISSUE PAPERS RE: TRUCK BOMB THREAT (U) As requested, we have reviewed the enclosed draft papers, " Revision to NRC Safeguards Design. Basis Threat," dated my 22,1984 (enclosure 1), and " Comparison of Agency Response to ' Truck.Bamb' Threat in the U.S.," dated June 4,1984 (enclosure 2), for classification. (U) It is our opinion both papers contain CONFIDENTIAL National Security Infonnation, and enclosure 3 indicates those portions of each paper to be deleted prior to public release. It is our understanding, based on conver-sations with Mr. Tom Allen of your ~ office, that Table 1 to enclosure 2 was furnished as unclassified information by the affected agencies. (u)g Please have one of your authorized classifiers, original or derivative, sign 4 the docunents as the derivative classifier, including the extra copies to be returned to SEC. Each document should also be portion marked as indicated on the er. closures. We also suggest that all appropriate offices be notified of the classified infonnation in these documents and in the basic study to preclude the inadvertent public release of classified infonnation while the " truck bamb" issue is being studied. (U) If you have any questions they may be referred to Lois Telford, X74132. d J. (ra, Dir6ct ivi ion oi S uri

Enclosures:

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EnergyDailyg w Wednesdsy, May 8,1985 Volume 13, Number 88 Row Rages Over An sittingoucks? Oklahoma Rule On $"#7),',$',' Cogeneration Costs Nuclear Plants BY KENNEDY MAIZE A bitter row over the future of cogeneration in Oklahoma has land. ed in the lap of the Federal Energy Regulatory Commission in " for Washington. On one side is Applied Energy Services (AES), an Arl-tiv targets te i ts nd ington, Va., company which is trying to arrange the sale of the elec-military planners? A brace of tricity from a planned 300-megawatt cogeneration plant in Oklahoma. California academics believe so and On the other side is the Oklahoma Corporation CommEsion, which have called for U.S. and interna-tional organizations to do says it is guarding the rights of ratepayers. something about it, i The regulators started the row last BY JOHN McCAUGHEY "An important threshold was October when they issued Rule Number 58 on the purchase of elec-or otherwise tinker with the con. crossed in 1981 when Israel bombed and destroyed a nuclear research tricity from cogenerators and small tract. reactor then under construction in power producers. The final clause That upset AES. "In our view," of that rule (an update of a version says John O'Sullivan, a Washington Iraq," University of California at adopted in 1981) said in effect that, lawyer representing the company, Berkeley researcher Bennett ) if the estimated avoided costs agreed "we could not get the project Ramberg said in Washington yester. on in a contract between a co-financed with this clause in the con day. It was the first time a nuclear generator and a utility turned out to tract, because the commission could facility had been treated as a be inaccurate, the commission could come in any time it decided, after military target. Just three months intervene as much as five or ten our client and others had sunk hun. ago, Ramberg added, Iraq bombed ears later to change the price terms (Continued on page 4) an Iranian nuclear power plant under construction on the Persian ,,vHAIR%A N' Chases Middle East Market a "' <- Cracking the steel and concrete 8 = nFor Industn. l Automation nu w ar ~ ntai - t st ~ cture - -- a mon in commercial power reactors 1 I5. not a trivial task. A terrorist-l Lured by the prospect of $2 BY RICHARD MYERs wielded homemade rocket launcher I billion in sales over the next five years, Combustion Engineering The new enterprise will support failed to rupture the containment at (1984 sales: $3.06 billion) has the region's fast-growing complex the French Phoenix breeder reactor joined forces with two Arab ven. of refineries, petrochemical and some time ago. But it is easily within ture capital firms to pursue the power plants and other process the grasp of most military powers, industrial automation market in the facilities. ARESCON will do engi. according to Ramberg. "Given the Middle East. Combustion Engi. neering, design, manufacturing, ability of conventional munitions to neering has taken a 40 percent servicing and maintenance of pro. destroy hard targets, coupled with stake in the new company, called cess control instrumentation, field the manifest accuracy of delivery Arab Engineered Systems and measurement devices, control vehicles such as the F-16, which the Control Co. (ARESCON). The valves and the like. The company United States exports, plus the fact Arab Petroleum Investments will push digital systems which, its that there are critical points outside Corp., an investment arm of the founders believe, afford greater the containment structure, there is ' Organization of Arab Petroleum reliability and flexibility than the no reason to believe that a power Exporting Countries (OAPEC) will electronic analog systems now reactor would survive a concerted hold another 40 percent; the Arab widely used, conventional weapons bombard. Industrial Investment Co., spon. The three partners plan to build ment," Ramberg wrote in a recent sored by the League of Arab States, a manufacturing / assembly facility book, Nuclear Power Plants as will own the remaining 20 percent. (Continued on page 3) (Continued on page 3) f[i

1 s 3 THE ENERGY DAILY wednesday, May3,1m "HVeilS SITTING DUCK PLANTS? <e,em,o,,one, Weapons for the Enemy: An Unrecognized restraints" prevent terrorist action that will d Military Peril. result in widespread loss of life-are hopelessly hme GQQ i A military attack on an operating power reac ' outdated. 5 65 0 tor would give the attacker a quick and dirty The example Hirsch cites to illustrate his point nuclear weapon, Ramberg argues. 'Ihe smashed is the NRC's treatment of the threat of truck

• id lead to a shortage of spew radioactivity across the coun-bombs such as the ones that killed hundreds of i
• " *u esse o priee improvement tryside in a pattern that could kill thousands and civilians and U.S. Marines in Lebanon. After the p

.csek, the oil major's vice contaminate the earth for decades. "In a strange deaths in Beirut, the Defense Department, the .eday. "Until then, there way," he said, " nations without a nuclear Energy Department, the Secret Service and th weapons capability of their own become nuclear State Department all took action to protect the,e ir nations by their ability to destroy their e J atomic plants with conventional bombs.,,nemy's [ facilities. tek said that he expects enslag supplies. Mobil's The NRC was also moving along that track, at a year and loflation of While conventional military doctrine troubles .y prices until the early to Ramberg, Daniel Hirsch, director of the Adlai having proposed a new rule in January 1984 to els at the burner tip, even Stevenson nuclear policy program at the Univer. require plants to protect themselves against truck bombs. But smce then, Hirsch charged, NRC has sity of California at Santa Cruz has nightmares backed down. Twc weeks after a Sandia study RANKiN about terrorist attacks on nuclear plants. The showed that a truck bomb detonated outside a Nuclear Regulatory Commission, Hirsch told plant's protected area could damage vital plant action from traditional reporters yesterday, has failed to adapt to "to-safety systems, "the NRC staff decided to defer y and,s cadil as rese e day's world where terrorists are ruthless and sophisticated adversaries who will do anything to any act, ion to include prot,ection from vehicle [fr tight san could i bombs m the design basis. make their political points in blood."

• artly in the late 1990s The NRC's official " design basis threat,"

What to do about military and terrorist North Slope gas. Mobil Hirsch notes, "was promulgated roughly a targeting of nuclear plants? Hirsch suggests NRC nomic until the next cen. decade ago. It has been unchanged since then, action to protect commercial plants and research gas hr.s environmental despite a radical change in the nature and fre-reactors against terrorism. Ramberg wants a , and cnly will make in-quency of terrorism in the last few years." Ai " comprehensive treaty that bans attacks,on . portion can be sold to study of the issue at his think tank, Hirsch told nuclear plants." Because international law "is a iesaid' the NRC's Advisory Committee on Reactor weak reed upon which to lean to prevent nations ,us " bubble" as a tem-Safeguards, found that the assumptions behind from attacking nuclear plants," Ramberg sug-at peaked at four trillion the, design basis threat-including the now-gests thinking about such ideas as remote sitmg y=r, the surplus will be quaint notion that " moral and political and underground siting of the plants.

feet and it could disap.

1987-88, Piontek says. ~ *n'e" ?aQ'En"a1 CE Chases Middle East Market ce,o page one, i by the American Gas teressed replacement of on the island of Bahrain. It is expected to factory automation, development of software e subj,en with a grain ofproduce several thousand valves and several for business applications, medical industry betik ect to revisions, hundred field measurement devices in its first electronics and instrumentation and the like. At numbers the,ndustry is year of operation. Along with this, there will be a press briefing in London yesterday, the i oject's Arab sponsors expressed the hope n sh ha ew two service centers to, repair and maintain plthat the joint venture will mark the beginning g

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analog systems, and a digital system center to at ye:r,s production, ne handle development of digital simulators, of an Arab ' Silicon Valley' cluster of high Engineering and service centers will also be technology enterprises., ute since the EIA reserve opened in Kuwait, Saudi Arabia Iraq and n 1977," he concludad. North Africa. Initial investment will be about The technology to be used will come from as vtry clearly that gas $20 million, said a CE spokesman, to be divided various Combustion Engineering subsidiaries: rder end harder to find. according to ownership. The the know-how and technology for control room LST new venture will be staffed mainly with Arab instrumentation and field measurement from nationals-cither experienced engineers drawn Taylor Instrument; control valve i from Arab industry, or recruited from engineer-technology from Jamesbury Corp.; simulator ing programs in the U.S. and Europe, and control equipment from CE Simcon; and j The Middle East market for the manufac. analytical instrumentation from CE's Process isso 200o turing and servicing of process control instru-Analytics operation. CE will receive no royalties mentation now belongs mainly to U.S. com. for the transfer of its technology, its spokesman panies like Combustion, Foxboro and Honey-said. Instead, the firm will simply share in 40 ) l 7.3 7.6 l 6.4 6.6 well, although Siemens AG and Hartmann & percent of the profits. The company will also l 30 15 Braun of West Germany and Yokogawa and assign engineers to the project for the first three 16.7 15.7 Hokushin of Japan are active there too. or four years to assist in training. "The venture l l ARESCON, its founders claim, is the first represents a major technology transfer to the Arab-based enterprise to pursue this market. Arab region," said Combustion Engineering 2.9 2'6 ) And its Arab sponsors, at least, are betting that president Charles Hugel. The Middle East 19.6 18.3 ARESCON's creation will spawn a host of other today, he added, "is virtually dependent on high-technology industries-in such areas as imports for this te.chnology." i I l l

a ernment sources said l'he proposal. par 7 of an estensne rulemakmg on gas pnces and transportation initiat-ed m May, would ehmmate rolleden pncing. The sponsors are concerned that the new pnce scheme uould price Great Plains gas out of the mar-ket, the sources said. In addition to Jelaying the in-sersice date, the gosemment also agreed to waive a requirement that the sponsors increase their equity stake in the project by $18 million in July, a source said. The sponsors, in re-turn, agreed to assume responsibihty for all costs meurred in July if the negotiations fail and they decide to shut down the plant r.t the end of the month. The SFC board of directors has a meeting slated for July 16. at which point the negotiators hope to have reached an agreement. HOUSE REPORT OUTLINES U.S. MEASURES TO AfD DEVELOPMENT OF CHINESE ENERGY tf A House committe repon on the benefits to be derned from increased trade with China has conclud-ed that the U.S. "could - and should - be doing more to promote China's energy development." Among those steps the government could take is to further loosen controls on certain technology exports useful in f oil and natural-gas exploration. increase technology transfer, and conclude a Apnl 1984 agreement on nucle-f ar energy cooperation. according to the report. The recommended course of U.S. action is part of a report by the House Energy and Commerce spe-cial subcommittee on U.S. trade with China, which is chaired by Rep. Al Swift D-Wash. The reportJcom-mittee print 99-L) is entitled " China's Econorric Development and U.S. Trade Interests." "As U.S. trade is increasingly focused within the Pacific Rim, the development of a more modern Chi-nese economy has potentially enormous implications for the United States. The most critical factor in the equation is the development of China's energy resources," the report asserted. Energy development in China, particularly oil for export, would provide sorely needed foreign exchange for the Chinese. "The U.S. must seek to promote cooperative efforts that utilize the capabilities of American firms to assist China in exploiting her energy resources," the repon added. In terms of aiding oil-and. gas exploration, the subcommittee said that the easing of some export re-strictions governing oil-field exploration equipment has allowed American firms to move quickly into Chi-na's offshore regions. But controls should be eased further on such technologies as seismic and well-logging equipment, the report said. The U.S. business community still has problems with current export controls, es-pecially multilateral controls exercised by the Coordinating Committee. which regulates the flow of Western technology to Communist nations. Esen if CoCom members consent to the more liberal U.S. policy, the case-by-case resiew of export applications could cause delays. "The expected increase m the volume of U.S. export applications for China threaten to become an ad-ministratise nightmare for CoCom because of its limited resources and inflexible review procedures," the re-port said. The completion of a technical-cooperation agreement between the U.S. and China by DOE could con-inbute significantly to Chinese energy deselopment. The agreement, which includes fossil-fuels extraction and processing techniques, is one way ' to identify and develop additional energy resources more quickly." Also, the report suggested that DOE could help strengthen China's ability to export existing oil and coal by shanng energy-conservation techniques and renewable energy. "The Umted States could negotiate a technical cooperation agreement in this area that would invohe DOE along with pnvate sector experts." the report said. Lastly, the report said that an existmg agreement to let China use data from the LANDSAT re-mote-sensing program run by the U.S. Geological Sursey should be continued. 3 In terms of nuclear power U.S. fears about proliferation hase stymied the conclusion of an agreement on cooperation that was mitialed during the president's 1984 trip to China, the report noted. The administra-tion has refused to submit the agreement for required congressional review, after which it would become ef-fective. Resolving the delay and submitting the agreement would allow U.S. nuclear vendors to compete for as many as 10 new planned Chinese reactors, the report said. Each reactor would involve, according to a Westinghouse estimate. 5,000 U.S. jobs and as much as 51 billion in resenue oser 6se or six years, the re-port said. INTERNAL REPORTS ON DOE WEAPONS-PLANT SECURITY, HEALTH NEARING COMPLETION Interni. repons on the secunty of DOE weapons mstalianen, and the ;0nsequences that they and oth-er department facihties base on emironment. heahh and safety are neanng umpletion. Under Secretary Jo-seph Salgado said last week These inqumes. as we!! r a mere ::::= ane imob n; Se Econem:c Regulatory Admim>tremar. f re-lated story on page it are part of a broad resiew of DOE actatties imtuted by Energy Secretary John Her-INSIDE ENERGY mth FEDER AL L.sNDS - Juls 8.1985 5 /

i l 1 rington since his arnval in February. Salgado said that a " total resiew" will "take a good year." Due early last week was an mterim report from Marine Col. Edward Badolato on secunty at the weapons plants Salgado told Inside Energy /with Federal Lands. Energy Secretary John Herrington was to review the Badolato report in California, where he was vacationing, and to decide later on steps to ensure se-k,l cunty. Previously sent to Herrington was an interim assessment of the health, environment and safety aspects of DOE's weapons and research installations. James Kane, a former DOE ensironmental official, compiled that report, which is known to be particularly critical of department management over the years. Salgado declined to disclose details of those studies. Salgado said that the Badolato effort entails "a whole range of options" for beefing up the security of weapons plants against terrorist attack. One management option, he said, was appointing a special assistant ] \\ to the secretary to supervise security. But he added quic!dy, "We're not wedded to any one (option] at this time." I The security inquiry was ordered first by ex-Energy Secretary Donald Hodel, at the prodding of House Energy and Commerce Committee Chairman John Dingell D-Mich. Hodel had planned to hase the study done by someone outside DOE. Herrington ordered an internal inquiry, instead, and assigned the task to Badolato. De Kane report on health, environment and safety has been circulating for comment among DOE field management. A final report, with options, is expected to be submitted to Herrington in mid-August or, . early September, Salgado said. While he would not discuss aspects of the report, Salgado commented that environment, health and safety programs had suffered from "a lack of stability" because of management turnover and vacancies over the years. He characterized the Kane report as " highly sensitive." Herrington has taken a first step in changing DOE's management of health, environment and safety by separating those programs from the general policy programs and assigning an assistant secretary, William Vaughan. to develop new options. An Interior Dept. ot5cial with ensironmental credentials Mary Walker, is assisting Vaughan (IE/fL,3 June,1). Also nearing completion is a report laying out formats for decisionmaking at DOE, Salgado said. That report, by Army Major Scott Wheeler, a former White House fellow, is to be completed in two to three weeks, he said. A joint DOE / Interior Dept. look into prospects for merging the departments is continuing Salgado said. Chances of such a merger generally are considered dim. But Salgado said that they continue to explore options because they were ordered to do so by President Reagan. AS EXPECTED, THE WHITE HOUSE HAS TENTATIVELY SELECTED Donna Fitzpatrick to serve as assis-tant secretary of conservation and renewable energy at DOE, an informed DOE official said last week. Fitz-patrick has been acting assistant secretary and previously was deputy assistant secretary. The White House also has made a tentative selection on another presidential appointment at DOE and appeared close to making a similar choice on another, the official said early last week. He would not specify which positions were involved, although he said t. hat assistant secretary for nuclear energy was not one of them (related story elsewhere in this issue). Vacant at DOE are five assistant secretary positions. They involve the emerging Environment, Health and Safety section and the old-line divisions of Conservation and Renewable Er:ergy, Fossil Energy, Interna-tional Affairs and Energy Emergencies, and Nuclear Energy. Also vacant is the position of director of the Alcohol Fuels Office, another presidential appointment. A tentative selection means that the person involved still must clear FBI, confhet-cf-interest and other checks before being nominated. A SHUFFLE OF DOE'S CONSERVATION AND RENEWABLE ENERGY DIVISION has been questioned again by House Energy and Commerce Committee Chairman John Dingell. This time the combative Michi-gan Democrat has been joined in his inquiry by Rep. Edward Markey, D-Mass., whose subcommittee on en-ergy conservation and power oversees the division. In a letter last month, the two legislators asked DOE to abandon the ongoing reorganization, which they see as disruptive and premature in the absence of a perma-nent anistant secretary for those programs. Dingell and Markey pointed out in a recent letter to William Heffelfinger, DOE's director of adminis-tration, that the reorganization is the " reincarnation" of one begun last y-ar. " Proceeding with that or any reorganization now will cause more upheaval in an office that has been the subject of constant reorganiza-tions since this administration took office " they said. They noted that Energy Secretary John Hernngton had " canceled" the previous reorganization and re-established the position of assistant secretary 6 INSIDE ENERGYlwash FEDERAL LANDS - My 8,1985

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LState_c.._ dfueLte,rf,orisfs,. (/) ou g .I t teemat-ies. !h06.u1F5Esair. e>b small plan' ts$. m~N "IhmwaspWinuchconsenY, ooun.r_is t.m-t onaca M8h& k.&{ - ~ t.m ted for," Davies said. "In the-

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' matsnafusedtomalysomenuclear wasumatow. o.c. Jooos 3,wes . e.1.. % E.g a d 's rtsfeaMt c(n nietenals would be hard to tr%acli. q Fror.t Edit Other t Pace. Foge Poes \\ [ yl.LUi!OT.E, itD. ',/. "Inattemptingtogauge(nuclear. g terrorism's) likelihood..we, must! i g g 'w"'rnIQ .... / first, acknowledge:that'.we don't. \\' ~" q baor know how much..if any, (nuclear, gnu r Et!Il! - 149,854 . material) may already have been; I ' stolen" said retired Rear Adm.: */ ttji:D.W - 226,591 'Ihomas Davies an aviator and; -\\ aeronautical engineer who r Mer of North A

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/.Evu R, c. s..'L..f e id.:. G-en.oug!tt.o's'op'sloi:aFF fornuclea.r weapo.ns,be satraf5c - uni y, y _. t x.y,.....n,_ mcreason m pas tut't[.8'"sarchers.aNIn.....k sta' in~uclear matenals.co4 lead to ar h. A*r8tud=9@secan*t,t,, grarorbr.ek markee.wheretenoe.< the nati6nW private'rperfacih( 4tacould acxtuue nuclear matenar _. hng;-- w a conventiond- "as they_now w& '%y/ d ties-saythayaren'tenoughtestop c "Jenkms F market already E a ' y k YI"$$t tdones =1rse 'Qgtwa.p=gg*attheconfer. P iden .6 . hasi.M,. g gg .v-Whto thaWMksadth* AIM mn-teosweca $w:mdi.m mm ena, ens ogtha,te,na. not quate 'groupGemid: Jack \\Fieldhousee tional: black marke't fE about.the- .C NMMY. said J an Da tL nuclear . tive from EG&G Inc.and psincipal /' . FBI ,4.y;'.apdof>the 6rinircireuita for ence4,,,,,..tiie highly,,

• p nuclear weapons.? L m to review-I umniumTueled research r=+Mfat" 1,",'lhe availability of uranium and UCIAttoldtinHodse Science f' plutonism ~mmes,atJE time whei Technoloe:Corsnitteei,b' ~h 'imany ifves to mhRs theifpoint, said '

.' terronsts'ieem willing to sacnfice-themost undefended targetshe ... m.-- g, Theodore Taylora a Damascus, Mdi,. s;- ,...-the FB1-e physicistiwho' worked. orr nuclear r clauned that tenonsts would' I fhm W nthe gg7c,l.f ;UFs"m2'Nfi@: littletmublestechngthe 'saE 2,"Ihad@Nector; tan't W"" DaviesAati areTilling peopio n a g edi v;. an ' ~ .i - r , er. d" m,w. g_ _.6.,inc,re.ased:duregant.for, '~ ho l 4 m developridd'Iea'.da.h.im, ?. csia.stfsr,M-s.gy= ^ b l W &"

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W wasawidlea a thed mion fuerbet- 'and secret'-- , Red Bngadeses I poembilitier'ac a'n secunty gmdelind for nuclear fa-s iW. :r.?rW r# gcilities. liutoeiciale at.the Nuclear Jejren;sta w Gen.JamewDon .id. Italy i L C4ntrot Institute's. conference ' fear er-m

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cembes 1981 questioned him abouti r. " Simultaneous explosions in' ,the locations pf nuclear _weapona in 6.Moemw and Washington would be ( l Emngte:,,p:-,49,S.Q nod; Iduck soup for a skilled. deterrnined, well<xvanized. tenorist groupb /' /A formeF German terroi%rsdid" l that with a nuclearwe% error." such groups are relauvely easy to i t ists could make the chanalldr'of4

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