ML20205E529

Requests Commission Review of Proposed Issuance of Export License for SNM to Edlow International Co

ML20205E529
Person / Time
Issue date:	12/17/1975
From:	Karen Chapman NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:
References
SECY-75-728, SECY-75-728-R, NUDOCS 9904050215
Download: ML20205E529 (13)

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December 17, 1975 SECY-75-728 COMMISSIONER ACTION SM

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Ebr: The Carmissioners .

Frcm: Kenneth R. Chapnan, Director Office of Nuclear Material Safety and Safeguards Thru: Executive Director for Operation V/ h(

Subject:

APPROVAL OF PROPOSED EXPORT LICENSE 'IO EDIIM INTERtATIOt&L l CO., (LICENSE 10. XSNM-805)

Purpose:

'Ib cbtain Cmmission review of the proposed issuance of an export license for special nuclear material. <

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Discussion: Edlow International Co. filed an application dated July 29, 1975, requesting a license to authorize the export of 3055.2 kilograms of uranium, enriched to a maximm of 2.71%, containing a maximm of 82.8 kilogrars of U-235, as urani m hexafluoride to India. Se material will be converted to UO2 ard fabricated into fuel at the Nuclear Fuel Cmplex, Hyderabad, 'a.

The fuel will then be used as reloads for the arapur I and II pwer mactors. A copy of the license applica-tion and end use statement are enclosed (Appendix A) .

The application was referred to the State Departnent on August 18, 1975, to obtain the views of the Executive Branch with regard to the issuance of the proposed license.

We State Departnent replied by menorandum dated Decsber 6, 1975, stating that in the view of the Executive Branch, the issuance of the proposed license would not be inimical to the camon defense and security. A copy of the State a

Department nenorandum is enclosed (Appeniix B) .

Contact:

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G. Wayne Kerr Q h,% 1.1by ,

492-7767 wO -LJaet

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PDR SECY 75-728 R PDR

lis omninnic,rw rn Discussion: Accx:rnpanyire the State Department nanorandtsn was a (continued) letter frczn the Embassy of India dated July 30, 1975, (Appendix C), stating that the transfer of material will be subject to all the terms and conditions of the Agreement for Cooperation between India and the United States.

W e staff's conclusions regarding the proposed export is attached (Appendix D).

Appendix E is a copy of the proposed license.

We applicant and the nrbassy of India have indicated a high degree of urgency is attached to this export.

Recamnendation: That the Comnission:

Approve the issuance of the proposed export license.

Cbordination: 2e Office of the Executive Iagal Director has concurred in this papar.

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4 ,., ,Ii Y'Chapuan, 15nnet 7 M , ,.Director

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Enclosures:

1. Appendix A - Application dtd 7/29/75 and end use statanent dtd 8/6/75

2. Appendix B - State Dept. memo dtd 12/6/75

3. Appendix C - Ltr fm Drbassy of India dtd 7/30/75

4. Appendix D - Staff conclusions dtd 12/10/75

5. Appendix E - Proposed license NOTE: Comnissioner ocroments should be provided directly to the Office of the Secretary by c.o.b. December 19. 1975 .

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5 APPLICATION FOR LICEME TO EXPORT l 8YPR000CT, SOURCE. OR SPECI AL NUCLEAR MATERl AL

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i C.orrjults kr.s.c .I trtu ttun s m liar i l 1 D A TE OF APPL 6C A TION / a PPLIC AN T*% RE F ERE M .( NO A COUN TR Y OF ULTIM AT E D ES TIN ATION July 29, 1975 l a""

i N DS 3-(3) INDIA 4 N AME OF APl>Lg.aN t {d lK l nt epngt j ona I Co. 5 U LTIM A T E CON *lGNES IN FORUGH COUN TRY j (twent out aldress) <

as agent for Gov't of India STREET AceNr$$ Ch.ief Super.intendent ll30-17th Street, N.W. #404 Tarapur Atomic Power Station i Civv. s r a TE. ANo ria r m Department of Atomic Energy Washington, D.C. ,,.0036 .

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6, IN T t a us r.sa T E CON bif.N e t IN F OnF lGN COUNTR Y (toes Henc 7 IF PURCH A$ER IN FOREIGN COUNTRY 15 OTH ER T64 AN an./ 4.s/cr s s f/ sene as ,! r o .si t guns #gner, at, ate "Sm r "1 ULTIM ATE CON $lGNEE GIVE N AME AND ADDRESS, Department of Atomic Energy til a-e. ssar "s=a ."e Nuclear fue l Comp lex Maula Ali, Hydeabad, 40 India "SAME" e (af QU AN T4Y f TO BE $MIPPr D f hp COMMOOlf Y DE$CRIPTION (learlude g Armu al and physacall<rwy for sPecial nuclee nNNerral med 45cr onstmctrons on hadI hspesduct unaternal alsu specify s<ntopre enntent; uf an a desince, udentify the devsce, meiulartierr, 82.8 kgs. U235 *d""d"""^' -

contained in Uranium as uranium hexafluoride enriched to a 30 55.20 kgs. Il  ;

maximum of 2.717o. j le o snis veNG AN n PatulNt.i PRoCEcuRE s t w uared o Isor specid re. clear matered. %.e instructnons on hxh. I (

Uni on Carbide Corporati on, Oak Ri dge, Tennessee, wiiI package the '

material in 308 cylinders in USA /4909-30/BF protective packages.

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• tt.c rese rch t at h reell be perf.ormed.) t See unstructn.ns un back for specent trurlear matersaf.h See attached end use statement from Tarapur Atomic Stati on.

to The its li. pe' in .1 iw .^ i41 -tet usin e sbn i rrtifiruse on be half of sh,- isthe an name.t an item t. certify that thin 6pplication n pn p.isc t ci ic .0 litir l':. ' .. le .d I cdt tal Hr,:ulatinen. P arts 40 and % dif for byproduct materiaD or Part 10 (if for soi. i < m.+ i c . . + Par. "O 's t ' ' re i41 rini lv.n man d.a0 .o i P.o' 'l 'lo liv a ut of radinactive material, if applicable) n.r.nne ! In re in nu la.line an v *nrriern nn s er.o h ~' hm to . re n an L nire. to i r he se of ihrir 6

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Appendix A Page 2 of 2 .

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December 6, 1975 i

MEMORANDUM FOR LEE V. GOSSICK NUCLEAR REGULATORY COMMISSION )

Subject:

Comments to NRC on Nuclear Export License Application Your. letter of August 18, 1975 requested the views of the Executive Branch on the issuance of a proposed license for the export of 3,055.20 kilograms uranium in the form of uranium hexafluoride enriched to a maximum of 2.71%, containing 82.8 kilograms U-235 to India.

On the basis of the factors covered by the attached analysis, the Executive Branch has concluded that issuance of the proposed license would not be inimical to the common defense and security and is of the view that the ,

license should be issued. The supply of this low enriched uranium is subject to all of the terms and conditions of the Agreement for Cooperatio for Civil Usepcof Atomic Energy between the United S es and ia( '

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'xe utivk Se pretary Attachments:

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1. License Application Analysis

2. Letter from Govt of India, dated July 30, 1975 Appendix B Page 1 of 4 ,

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T i a n s.s t. t s on : '

>,055.20 L i l o p, s .on- us.inaum in the Iosm of uran ium hexa fluoride enriched to a maximum of 2.71%, containing 82.8 kilograms U-235 to India. Applicant: Edlow International Co. Applicant's

Reference:

IN/DS/3

1. What is the purpose of the export?

This enriched uranium will be used for making fuel assemblies for the reload requirements of Tarapur Atomic Power Station, Bombay, India. This is composed of two 200 Megawatt electric, GE built boiling water reactors, Tarapur I and II. The supply of uranium will be used in both reactors as part of a con-tinuing supply contract with Tarapur.

1

2. Does the recipient country have an Agreement for Cooperation with the United States under Section 123 of the Atomic Energy Act, as amended? And, if so, is the export in question covered by the agreement?

The supply of the low enriched uranium is subject to all of the terms and conditions of the Agreement for Cooperation for Civil Uses of Atomic Energy between the United States and India. This was confirmed in a letter from the Government of India dated July 30, 1975, a copy of which is attached. The Agreement for Cooperation first came into effect in October 1963.

The Agreement prohibits reexport of special nuclear materials supplied to India by the United States, without agreement by the Government of the United States.

(Agreement for Cooperation, Article VII A2 and Article II F).

Special nuclear material supplied to the Government of l

India by the United States may be reprocessed upon joint i determination of the Parties to the Agreement that safeguards l may be effectively applied. Furthermore, "It is understood, except as may be otherwise agreed, that the form and content of any irradiated fuel elements removed from the reactors shall not be altered before delivery to any such reprocessing facility." (Agreement for Cooperation, Article IIE).

The Goverment of India has given us written assurance that "...the special nuclear material that has been or is hereaf ter made available for, or used, or produced in the Appendix L Page 2 of 4

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Tarapur Atomic Power Station lor;ated at Tarapur will be devoted exclusively to the needs of that Station unless our two Governments hereafter specifically agree that such material be used for other purposes."

3. Has the recipient country accepted and implemented IAEA safeguards and/or-other appropriate supplementary bilateral conditions (including, where applicable, understandings regarding reexport) imposed by the U.S.?

The United States, India and the International Atomic-Energy Agency signed a trilateral agreement January 27, 1971 for Application of Safeguards by the IAEA to the United States-India Cooperation Agreement. The Agreement '

to apply IAEA safeguards has been implemented. j i

As noted above, in answer to question 2, the Bilateral Agreement for Cooperation between the United States and 1 India includes understandings regarding reexport. I

4. In cases in which the recipient country is not required I by the NPT to accept IAEA safeguards, does the. recipient country or organization have accounting and inspection procedures such as to assure compliance with the requirements of the relevant U.S. Agreement?

Not applicable, since IAEA safeguards essentially comparable to those required under the NPT are in effect under the aforementioned trilateral agreement.

5. Does the recipient country have adequate physical security arrangements to deal with threats to sub-national diversion of significant quantities of nuclear weapon materials (plutonium or highly enriched uranium?)

Not applicable, since it is a shipment of low enriched (2. 71 % ) uranium, which is not a nuclear weapon material.

6. What is the position of the recipient country with

, regard to non-proliferation (e.g., party to NPT, LANFZ, public statements)?

India has not signed the Nuclear Non-Proliferation Treaty. The Government of India has repeatedly stated that it intends to develop nuclear capabilities for peaceful purposes, such as the Tarapur Atomic Power Station. Since India exploded a nuclear device last year, there have been seriouu questions raised about the future direction Appendix B Page 3 of 4

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of India's nucioar policy. As no ntioned in answer to question 2, the Government of Inuia has given the l United States written assurance that the special nuclear l material, and products therefrom , exported by the US to Tarapur"...will be devoted exclusively to the needs of

-v that Station unless our two Governments hereafter specifically agree that such material be used for other purposes."

, 7. What understandings does the United States have with the recipient country with respect to use of U.S.- l supplied material or equipment to acquire or develop l nuclear explosive devices for any purpose, and as to the recipient country's policies and actions as to such

, development using equipment and material from any source?

The U.S.-India Agreement for Cooperation states explicitly that U.S.-supplied material or equipment intended for use in the Tarapur Station shall be used exclusively for peaceful purposes.

For purposes of clarification about the use of low enriched uranium at Tarapur, the Government of India has given the United States assurance, as previously mentioned, '

that no material provided for use at the Tarapur Station wil1 be used for any other purpose without the specific agreement of both Governments.

The Agreement further forbids the use of any U.S.-supplied special nuclear material or any nuclear material generated therefrom for any nuclear explosive device for any purpose.

8. What other factors are there which bear on the issuance of the export license, such as further U.S. under-standings with the recipient country, other supplier countries or interested regional countries?

This shipment of low enriched uranium is one in a series of shipments of special nuclear material for the Tarapur reactors. It is a continuation of the resupply contract.

Special circumstances have led to the further assurances, previously mentioned, that the material supplied to Tarapur will not be used for other purposes without specific agree-ment by the United States and India. .

9 Appendix B Page 4 of 4

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Co. 'l SA/74 30th July,1975 j l .r. 7 oc: H, Huti: 1, Assist ~nt .;i ^ctar ',r olitict i- l

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Livicen or Internatinr..,1 Mcurity Affoirs, Jnergy hascarch nu povalopent 2drdni.>tration Gerr. nto'n,..Ar lant! c M0760 l

l PS: ddlou internat,isl Co:1cany rpplication l licNrance an :ocr IJ/D3/3 1

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Re."eren:e la made to the noave untioned rpplis tion for l expart licer.se. We hereby cortify ti. L the Depart.unt of Atomic Energy, Duclonr Fuel Complex, r~aula Ali, iiyderacad.'40, Ir.dia in an euthorisad person ta r,ccive mntarial and th5t the rmtsrial which uill te tr nsfer:ed 1

( for usn.le in t a foraptr Atonic Jtation will oe . subject to i:11 terms and conditions af the Additional A;;reemcat for Cooperations 'oetween the U.S.

1 Government Fnd the eauntry of India.

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l Further, this ir, to let you know thet Edlow Internntional l

Cox.pany is euthor19cd to "pply for en cxport license for the shipaent of ,

i 82.8 kgs. U 235 cantsineri in 3055 20 kgs uranium.  !

fory truly ;our.;,

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( . . Anand9krishnan )

Appendix C

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NUCLEAR f t E Gill A TOlt Y COMMISSION W A WIN fi f UN, il i N%

I December 10, 1975 Note to Files:

STAFF CONCLUSIONS REGARDING PROPOSED EXPORT OF SPECIAL NUCLEAR MATERIAL BY EDLOW INTERNATIONAL CO., (LICENSE NO. XSNM-805)

Edlow International Co. filed an application dated July 29, 1975, re-questing a license to authorize the export of 3055.2 kilograms of uranium enriched to 2.71%, containing 82.8 kilograms of U-235. An end l use statement dated August 6, 1975, was also submitted. The material J

'will be converted from UF 6 t UO2 and fabricated into fuel for the '

Tarapur I and II power reactors at Bombay, India.

As required by Section 57 of the Atomic Energy Act and 10 CFR 70.31 we have determined that the export to be made pursuant to the proposed license:

1. would be subject to the Agreement for Cooperation between l the U. S. and India which first entered into force in l October 1963, and

2. would not be inimical to the common defense and security of the United States.

The information supporting this action is:

1. Application dated July 29, 1975 and end use statement dated August 6, 1975.

2. Letter from the Embassy of India dated July 30, 1975.

3. Memorandum from the State Department dated December 6,1975 '

including License Application Analysis, which states that issuance of the proposed export license would not be inimical to the common defense and security.

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G. Wayne Kerr, Chief Agreements and Exports Branch i

Division of Fuel Cycle and Material Safety t

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Appendix D

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M c' I Purivent to the Atomic [norgy Act of 1954 and the regulehr.ns author.r.ag the . pnet of the meterials end/or production or N I

of the U. 5. Atomic Energy Cnmminion iuued pursuant thercio, u s,iir a tina f ecitmos I;sted below. subject to the terms and '

and in relience on statemeMi and represente' ions heretofore prov sions herein. The 1. cense to esport estends to the licensee's  ! -

b l made by the licensee, a license is bareby issued to the licensee duly authorized shipping agent.

l . _ _ _ _ . _ !f llCENSEE qg l ULilMATE CON 11GNCE IN FOREIGN COUNTRY j l Edlow International Co.

nauf NAuf Chief Superintendent d

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as agent for Gov't of India l 1100-17th Street,11.W. #404 Tarapur Atomic Power Station l t y ,,,,,,, ,,,,,,, Departacnt of Atomic Energy  ; i l liashirgon, D. C. 20036 Bombay, India f

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il ArrucANrs REF. NO. IN DS 3-(3) CouNiRv oF ULTIMATE DE$flNATION IndiO hh l QUANilif DESCRIPflON oF MATERIALS on FACluTIES l i 82e8 kilograms of contained in 3055.20 kilograms of uranium 4

p uraniuin 235 enrictied to 2.71 w/o maximum. l{

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1 g Conditi ons 1, 5, 6, and 8 on page 2 of this license apply to this export. i '

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Wherever the words " Atomic Energy Commission" or " Commission" appear in this e},.

I license, except where the context of their use refers to a fact or event prior g gi

( to January 19, 1975, they mean the Nucinar Regulatory Commission created by gf i Public Law 93-438 and Executive Order No. 11834. j ij b

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THil LICENSE 11 INYAllD UNLESS SIGNED RELOW j Neither this license por any righ t under this I;t ense shall be 8Y AUTHORIZED AEC REPRESENTATIVE 8, J essigned or otherwise transferred in violation of the provisions '

l of the Atomic Energy Act of 1954 C. Uayne Kerr, Chief +

Agreements and Export Branch 9 This licens. . subiect to the right of recepiore r., control reser ed by Sect.on 08 of thn Atomic Energy Act of 1954. and to .tl of Division of !!sterials and .)

g rd _ ilig th. othe, p, .;sions or s.;a Act. now o, horenf t., in effect and Fuci Cycle Facility Licensing .

ly y to eli vetid rules and ,egulassons of ihn U. 5. Atomic Enceny DATE 07 issuance J Commiss.on. , i k"h- Nwhas 4ks saiwaNu k 4th duukkw wal%MsdMias M;i573MiGEM23hid3ME23tlilTwa.M k 4-p 0(@

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4$' addition to those otherwise required, ul the Shipper's Export Declaration coveringir,9 l

$'I ' ).s ; each ex;; 3rt and mark one of such copies for transmittal to the U.S. Atomic Energy'<[.

A' Commission, Agreements and Exports Branch, Fuels and Materials, Directorate of 'f;-

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Licensing, Washington, D.C. 20545. The following declaration should accompany %

k' d or be placed on the Shipper's Export Declarations for such exports: 3 ,,f Q, ', /

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A: "This shipment is being made pursuant to specific license number (specific $

- license number) filed at (location of Customs office where license is filed), *g 6 ( f.

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on (date license was filed). This license expires on (expiration date of/4 f.%i 4 .

license), and cover the shipment the unshipped described balance remaining on this declaration." g. on th

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' .O.- b; *';,,16- Condition 2-Exports authorized in any country or destination, except Country Groups 0, S.W,Y X, Y, and Z in Part 370, Supplement No.1, of the Comprehensive Export Schedula. i Q,.Y,T[

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' of the U.S. Department of Commerce. , ,i.y[" (., , .. .<., . ,

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142.$ Condition 3-This license covers only the nuclear content of the material. .

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s' s t ,, c , , , the physical protection requirements for special nuclear material in 10 CFR 73. 5M.9  :

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t,;,. . , %3.W Condition 5-Special nuclear material authorized for export under this license shall nottbe#

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, app M/ exceeding (1) 20 grams or 20 curies, whichever is less, of plutonium or uranium .. '

233, or (2) 350 grams of uranium 235. .

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F- {$. Condition 6-This. license authorizes export only and does not authorize the receipt, physicalb. -

H '.' h ". " possession, or use of the nuclear material. ,-

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';N Condition 7-The licensee shall complete and submit an AEC Forn 741 for each j'.g k' , .! 5 shipment of source material exported under this license. ,.,C 6%

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/* 4, N' *4 Condition 8-The licensee shall advise the AEC in the event there is any changej, )

!, j (yl'  ; in the designation of the company who will package the nuclear 5 l

[. .y 1' "' ' material to be exported under this license, or any change in the l

)4i '. location of the packaging operation, at least three weeks prior

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to the scheduled date of export. l-3

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l DISTRIBUTION NO. OF COPIES Secretary 5 {

Chairman Anders 4 I' Commissioner Rowden 2 Commissioner Mason 3 Commissioner Gilinsky 2 Commissioner Kennedy 3 Exe; Dir for Operations 2 Asst Exec Dir for Operations 1 Congressional Affairs 1 Public Affairs 2 General Counsel 5 Inspector & Auditor 2 Exec Legal Director 2

-Administration 3 Policy Evaluation 2 Planning & Analysis 1 International & State Programs 1 Nuclear Mat Safety & Safeguards 2 Mats & Fuel Cycle Facility Licensing 5

.Saf eguard s 1 Inspection & Enforcement 1 Atlanta 1 San Francisco 1 1

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