ML20205Q572

SER Re Const Mod & Licensing of Company Facility-1 Cpdf. Licensee Technically Qualified to Modify Existing Facility in Such Way as to Assure Adequate Protection of Common Defense & Security

ML20205Q572
Person / Time
Site:	05000000, 05000603
Issue date:	10/31/1988
From:	NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:
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ML20205Q569	List: ML20205Q566 ML20205Q572 ML20205Q576
References
NUDOCS 8811090287
Download: ML20205Q572 (21)

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i SAFETY EVALUATION REPORT RELATED TO THE CONSTRUCTION MODIFICATION AND LICENSING OF THE ALCHEMIE FACILITY-1 CPDF ALL CHEMICAL ISOTOPE END.ICH'!ENT, INC.

0AK RIDGE, TENNESSEE DOCKET NO. 50-603 1

U.S. NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR MATERIAL SAFETY .

AND SAFEGUARDS OCTOBER 1988 i

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.f 8311090297 39go27

{LR ADOCK 05000603 FDC

, TABLE OF CONTENTS

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1. INTRODUCTION ..................................................... 1 II. APPLICABILITY OF PART 50 0F TITLE 10 ............................. 4 A. Non-Applicability ............................................ 4 B. Exemption Request ............................................ 4 C. Sections Applicable But Not Requiring Action ................. 5 III. ERIEF SITE DESCRIPTION ........................................... 7 IV. SAFETY ANALYSIS .....................-............................ 8 A. Radiation Protection ......................................... 8 B. Waste Disposal ............................................... 12 C. Cecc.. !ssicning .............................................. 12 V. SAFEGUARDS PROVISIONS ......................... ............. .... 14 1 VI. PROTECTION OF CLASSIFIED INFORMATION ............................. 15 VII. ADVISORY COMMITTEE ON REACTOR SAFEGUARDS ......................... 16 VIII. FINANCIAL INFORMATION ............................................ 17 IX. CONCLUSIONS ...................................................... 18 r

APPENDIX A - Federal Register Notices and NRC Staff Paper to Commission ................................................. A-1 APPENDIX B - Request for Exemption ...................................... B-1 APPENDIX C - Exemption .................................................. C-1 APPENDIX D - Letter from Department of Energy .........................s. D-1 APPENDIX E - Letter from Advisory Committee on Reactor Safeguards ....... E-1

. APPENDIX F - Chronology of Principal Correspondence ..................... F-1 I

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I. INTRODUCTION The All Chemical Isotope Enrichment Company sAlChemIE) filed with the U.S.

Nuclear Regulatory Commission (NRC) an appif:ation, dated November 17, 1987, for a license to construct and operate the AlChemIE Facility-1 CPDF. AlChemIE intends to use the facility to enrich stab;e isotopes. In order to enrich stable isotopes, AlChemIE is purchasing centrifuge machines from the Department of Energy !00E).1 The centrifuge machines were originally designed and manu-factured to enrich uranium, but A1ChemIE will not use them for that purpose.

Under the Atomic Energy Act of 1954, as amended the U.S. Nuclear Regulatory Commission is authori:cd to regulate the commercial use of radioactive mate-rials. The Commission also may exercise jurisdiction over hazardous materials intimately associated with radioactive materials under its jurisdiction. How-i ever, the Commission has no jurisdiction over non-radioactive hazardous (or l non-hazardous for that matter) materials separate and apart from it:; associa-tion with radioactive materials. For this reason, the enriching of stable isotopes is not ordinarily within the regulatory authority of the Commission.

P However, any equipment or device capable of enriching uranium, if intended for commercial use, is defined as t. "production facility" and must be licensed by the Commission as stipulated by Sections 11v and 101 of the Atomic Energy Act of 1954, as amended. Since the centrifuge macnines AlChemIE will obtain from the Department of Energy are capable of enriching uranium, as stated above,

. 20n April C 19 6, the Department of Energy published a notice in the Federal Register (51 FR 11811) requesting expressions of interest for participation in the Department's uranium enrichment program. AlChemIE responded to the notice, expressing an interest to use the centrifuge machines for commercial j purposes, not involving the enriching of uranium, as further described herein and in their application. On December 5, 1986, A1ChemIE submitted a proposal in response to the Department's announcement in the Commerce Business Daily requesting such proposals. On December 27, 1986, the Department notified -

AlChemIE that a minimum of 250 machines were reserved at the Portmouth, Ohio Gaseous Centrifuge Enrichment Plant. Contract negotiations between AlchemIE and the Department have proceeded from that time, in one particular for lease arrangements for the Centrifuge Plant Demonstration Facility, located at the l A-25 complex on the Federal reservation at Oak Ridge Tennessee. l 1  ;

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their possession and use must be licensed. The Commission rule which governs the licensing o' production facilities is 10 CFR Part 50.

AlchemIE Facility-1 CPDF was previously used by the Department of Energy as a Centrifuge Plant Demonstration Facility (hence, CPDF). Therefore, the facility l has been completely constructed ar.d operated. In fact, in addition to tests i conducted with uranium (as the hexafluoride), the machines have been used to enrich some stable isotopes. Although some building modifications are neces-sary, the construction period is expected to be very short.

On April 28, 1988, the Commission published a notice in the Federal Register (53 FR 1517) which indicated that the application had been received and that prict te a de:i:!:r r. the requested construction perr it and cperating license the Commission will have made the findings required by the Atomic Energy Act i

of 1954, as amended, and the Commission's rules and regulations. The notice further indicated that a hearing will be held before an Atomic Safety and Licensing Board to consider the construction permit application. The Commission has instructed the staff, in connection with processes involving uranium hexafluoride, to consider both the radiological and non-radiological hazards of licensed material. In this rise, however, the chemical hazards, if any, are unrelated to materials licensed under the Atomic Energy Act. Such hazards would be subject to regulation by other agencies ( u ., Environmental l Protection Agency under the Resources Conservation and Recovery Act, and the

, Toxic Substances Control Act). Therefore, in this instance, the Commission has determined not to exercise any authority it may have over chemical hazards i

that r.ay arise from operation of the machines to produce non-radioactive materials.2 l

As a result of the tests conducted by the Department of Energy, as described above, the centrifuge machines and associated piping have been contaminated

. with uranium. Because the purpose of the tests, in part, was to demonstrate enrichment, some of the uranium contamination is enriched in the uranium-235 t

20n April 22, 1988, the Commission approved publication of Federal Register  !

notices setting forth the particular findings the Commission will have to make for this unique application. A copy of the Federal Register notice and the NRC staff paper to the Commission on this topic are shown in Appendix A to thir report.

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isotope. Since enriched uranium is special nuclear material and a license is required for the possession of special nuclear material, A1ChemIE wil; be ,

authorized under the pertinent regulation, 10 CFR Part 70, to possess the uranium contaminant permanently fixed to the machines and piping.

AlChemIE is also required to submit an environmental report in accordance with the National Environmental Policy Act of 1969 and the Commission's regulation in 10 CFR Part 51. In a separate document, the NRC Staff has provided its assessment of the report and its own independent, interdisciplinary assessment of the potential impact of the proposed facility modifications and cperation on the environment. (See Environmental Assessment Related to the Construction

and Operation of the AlChemIE Facility-1 CPDF, September 1988.)

l Details of the design and manufacture of the gaseous centrifuge enrichment machines are considered by the Federal Government to be classified information I requiring protection from public disclosure. The Commission's regulations pertaining to this topic are 10 CFR Parts 25 and 95. Part 25 establishes 1

procedures for granting access to classified information. AlChemIE employees

< and contractor personnel have been cleared by the NRC Security Division in accordance with those procedures. Part 95 establishes procedures for safe-guarding classified information. AlChemIE has submitted.. security plan l appropriate for the AlChemIE Facility-1 CPDF. This plan is further discussed

! in Section V of this report.

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i. II. APPLICABILITY OF PART 50 0F TITLE 10 A. Non-Applicability I i

l In recognition that the Commission's regulations in 10 CFR Part 50, "Domestic l i Licensing of Production and Utilization Facilities," were intended to apply to  ;

l nuclear reactors and fuel reprocessing plants, the applicant has provided a list [

of those sections of the reguldtions which are, on their face, not applicable I

to the AlChemIE application. The NRC staff has reviewed that list and concludes l l that none of the listed sections apply to the applicant. For the convenience of I the reader, those sections are listed in Table 1. In a majority of instances, I i these sections specifically apply only to nuclear reactors (utilization  !

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j Non-Applicable Sections of 10 CFR Part 50 l 3

j S 50.10(e); S 50.21; S 50.33(g) and (i); S 50.33a (a) through (d); S 50.34(a)(3), [

(4), (5), (7), and (11); S 50.34(b)(1), (2), (4), (5), (6)(ii), (iii), (iv), l (vii), (8), (9); S 50.34(f), (g); 5 50.34a, S 50.36a, S 50.41, S 50.43, l

S 50.44, 5 50.46, S 50.47, S 50.40, 5 50.49, S 50.54(a), (1), (1-1), (j), (k),  !

J (1), (m), (o), (q), (r), (s), (t), (u), (w), (y), (z), (bb); 5 50.55(e)(1)- I i S 50.55(f); 5 50.55a; S 50.57(c), 5 50.60; S 50.61; $ 50.62; S 50.64; i S 50.70(b)(2); S 50.71(e); $ 50.72; and S 50.73.  !

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l B. Exemption Request i Sections 50.34(a)10, 50.34(b)(6)(2), and Appendix E to 10 CFR Part 50 address

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i the subject of emergency planning for production and/or utilization facilities. I 1  !

] Although these sections and the appendix do not specifically state that they l apply only to nuclear reactors or nuclear fuel reprocessing plants, neverthe- }

less, it is clear from a reading of the requirements contained therein that  !

l they are intended to apply to facilities in which radioactive materials are

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contained, which are in and of themselves a potential threat to the health and l 1

safety of the pablic. l i i 4 l i

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, As has been discussed above, the centrifuge machines which AlChemIE inttnds to l use are contarriaated with uranium through their previous use. However, as dis-l cussed later in this report, the uranium is fixed tightly to the machines and j piping and is not available for dispersal. Therefore, there is no radiological  !

i health and safety threat to the public, i

! For the reasons stated above, the applicant filed a request for an exemption  ;

! from the requirements of Sections 50.34(a)10, 50.34(b)(6)(v), and Appendix E j

{ to 10 CFR Part 50 on August 17, 1988. A copy of the request for exemption  :

) is shown in Appendix B to this report. The Director of the Division of

Industrial and Medical Nuclear Safety intends to grant the exemption shown in j Appendix C to this report prior to issuance of the construction permit. The  ;

l exer::ption will be incorporated in the construction peimi,t. t i

l C. Sections Applicable But Not Requiring Action l In a few instances, a particular section of 10 CFR Part 50 applies to AlChemIE, ,

{ but, as a practical matter, does not require any action for the the reasons ,

! discussed in the paragraphs below.  !

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1. Section 50.34(a)(8) - Research and Development I

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This section requires that an applicant identify those structures, systems, l

and components, if any, which require research and development to confirm the [

adequacy of design, and then a program conducted to resolve any safety ques- j i tions and at what time. Since no research and development has been proposed  ;

l by the applicant, nor appears necessary. to confirm adequacy of design, Sec- l I

4 tion 50.34(a)(8) requires no action, i j

t l 2. Section 50.36 - Technical Specific.tians 1

Although an applicant would be expected to propose technical specifications for I I i j applications for nuclear reactors or for reprocessing plants, under the narrow l scope of this proceeding the only review area to which technical specifications

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j would apply is that of safeguards. However, all safeguards requirements have 4

been adequately addressed by the Applicant and necessary license conditions  !

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w ll be imposed. Accordingly, additional requirements in the form of technical specifications, as defined in 5 50.36 (see Section V of this report) are not necessary.

3. Section 50.42(a) - Proportionate Useful Purpose This section, derived from the Atomic Energy Act, requires that the proposed activities serve a useful purpose proportionate to the quantities of special nuclear material or source material to be utilized. Since all of the special '

nuclear material and source material is fixed to the centrifuge machines and

] piping in the CPDF (see Section IV.A.I. of this report), none is available for i a useful purpose and, tnerefore, no proportionate purpose can be served.

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1 III. BRIEF SITE DESCRIPTION

, As discussed above, AlChemIE is currently negotiating with the Department of Energy for leasing the Centrifuge Plant Demonstration Facility within the boundaries of the Oak Ridge Gaseous Diffusion Plant (K-25). Its location and site description can be found in the application in both the applicant's Safety Analysis Report and the applicant's Environmental Report and, there-fore, are not reported here.  !

! Access to the AlchemIE facility will be controlled by AlChemIE and can be gained from Tennessee State Highway 58 (Oak Ridge Turnpike) without gaining access to Federal facilities at the Oak Ridge Gaseous Diffusion Plant. The j activities of the Fedcral Government c,tr tha past 45 years ha.e resulted in i

the collection of a significant body of environmental information which is t available for application to the proposed A1ChemIE use of the facility. As j discussed in the staff's Environmental Assessment some Federal services will be provided to A1ChemIE by the Department of Energy consistent with the DOE-AlchemIE agreement.

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i IV. SAFETY ANALYSIS A. Radiation Protection I

j 1. Contamination of Centrifuge Machines with Uranium t

i i l Since all of the centrifuge machines proposed for use at the CPDF have been l tested using uranium hexafluoride, a thin film of contamination has been lef t f

j in each machine, primarily in the rotor. Considering the nature of the l l machines, enrichment in the uranium-235 isotope varies somewhat fro.n less than '

natural (0.007 mass fraction), to a maximum of about 0.038 mass fraction. If  !

the uranium were to be evenly distributed on the rotor's wall, the film would be l about 0.07 niiciun= Uid.  !

1 The deposited material is uranyl fluoride, UO22 F , a reaction pieduct formed j when small amounts of moisture remaining in the low vacuum system react with i the uranium hexafluoridt At its test facility at the Centrifuge Plant l Demonstration Facility using identical centrifuge machines, the Department of 4* {

Energy enriched stable isotopes in a manner similar to that proposed by the i

! applicant and determined that the uranium contamination is sufficiently fixed i i t 4 that it did not carry over with either product or tails. The applicant will i j continue to sample and analyze both product and tails to determine if any l uranium is present.

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! I j In Section 6.0 of the Safety Analysis Report, the applicant has conservatively (

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assumed the occurrence of an accident which releases a fraction of the uranium  !

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and is then inhaled by a nearby operator. The calculated, theoretical result-  ;

ant dose to a person (probably an operator) located adjacent to the equipment

is inconsequential. The staff has independently performed similar calculations

! with the same result. We conclude that the uranium fixed to the centrifuge '

machines cannot affect worker or the public health and safety under any opera- ,;

j tional or accident conditions.

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2. Enrichment of Naturally Occurrino Radioisotopes 1 i 1 The process proposed is termed the enrichment of stable isotopes. Among the l I potential feed materials are about 15 :hemical elements for which the isotopic l y

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enrichment process will increase the proportion of one or more naturally occur- ,

ring radioisotopes, in either the product stream or the tails stream.

With the exception of carbon-14, these naturally occurring radioisotopes,are considered by physicists and coscologists to be primordial, i.e. , they were I created like uranium, in the initial processes which created the universe, and they are found in nature in relatively constant proportions to the other iso-topes of their element. They also have long half-lives, 40 billion years or j longer; a result of such a long half-life is that it is necessary to have a relatively large mass of the element to have a unit quantity of radioactivity.

Another consequence of their natural cbundance and their long half-live is that they are so disperse in the environment and in our usual surroundings that they are ncrmally cf ne cen:crn with regard to radiclegi: 1 s:fety. I i i j Table 1 lists these radioisotopes, and for each, its half-life, its natural  !

] abundance, the approximate mass that might be annually on site as process mate-rial at the proposed facility, and the approximate quantity of radioactivity which that mass implies. l i

, To illustrate the insignificance of such quantities of radioactivity, an I arbitrary threshold quantity of 0.1 microcurie is selected for comparison [

purposes. The threshold is arbitrary because the Commission does not regulate  !

naturally occurring radioisotopes and does not list these in its regulations.

j However, this threshold quantity is the smallest exempt quantity of a byproduct i

radionuclide listai in Schedule B of 10 CFR S 30.71. As stated in 10 CFR 5 30.18, Exempt Quant _ities, "any person is exempt from the requirements for a l license" from the Federal government if they possess less than the quantities j listed in Schedule B. The Table shows that only such radionuclides for which the possible yearly inventory at the centrifuge facility is greater than  ;

0.1 microcurie are zine-64, zinc-70, tellurium-123 and platinum-190. As l another comparison of the ragnitude of these quantities, the average adult hucan contains about 0.1 microcurie of potassium-40 and about 0.4 microcurie of carbon-14. .

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! To illustrate the radiological insignificance of possible enrichment of the 1

nuclides, the applicant, in a letter dated June 9, 1988, addressed the example l

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TABLE 1 NATURALLY OCCURRING RADI0 ISOTOPES WHICH HAY BE ENRICHED Possible Plant Isotope Half-Life Abundance Inventory (Yearly)

(years) (%) (kilograms) (microcuries) a

. Vanadiam-50 6 x 1015 0.25 .001 1.2 x 10 8 Cadmium-113 1.3 x 1015 12.26 5.1 1.2 x 10 2 4

Cadmium-116 >1017 7.58 5.1 <1.6 x 10 10 4 j Indium-115 6 x 1014 95.77 .001 5.2 x 10 8 2

Tellurium-123 1.2 x 1018 0.87 2.8 6.8 x 10 1 Tellurium-130 8 x 102o 34.49 2.8 9.5 x 10 8 ,

Tantalum-180 1012 0.0123 .001 2.0 x 10 8 Rhenium-187 4.3 x 1010 62.93 .001 4.4 x 10 2 Gertranium-76 >2 x 1018 7.67 5.7 <1.3 x 10 8 Molybdenum-92 >4 x 101s 15.86 70 6.8 x 10 5 j Molybdenum-100 >3 x 1017 9.62 70 <8.3 x 10 4 Platinum-190 6.9 x 1011 0.0127

• 2.7 x 10 1**

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Platinum-192 1015 0.78

• 1.9 x 10 4**

Platinum-198 >1015 7.19 * <1.8 x 10 4**

Antimony-123 >1.3 x 1028 42.75 .001 <2.2 x 10 7 t

Selenium-82 >1017 9.19 .001 <4.4 x 10 5 Tin-124 >2 x 1017 5.98 .018 <2.6 x 10 7 Tungsten-180 >1.1 x 1015 0.135 .004 <7.2 x 10 8 l

Tungsten-182 >2 x 1017 26.4 .004 <3.9 x 10 8  ;

l Tungsten-183 >1.1 x 1017 14.4 .004 <7.1 x 10 8 Zinc-64 >8 x 1015 48.49 1000 <7,0 x 10 1 l f Zinc-70 >1015 0.62 1000 <5.11 1

• Quantity processed not shown, but would be sit.ilar to other noble metals i.e., less than 0.1 kg,

• • Activity in 0.1 kg. l l

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of Te-123, assuming a feed cylinder containing 176 pounds (80 kg, about 200 microcuries) of pure Te-123 (rather than at its natural abundance). The dose to a person standing 1 foot from the cylinder was calculated to be 6 microres per hour. It was estimated that if such a cylinder was ruptured, the bone surface dose for a person in the plant breathing for 2 hours2.314815e-5 days <br />5.555556e-4 hours <br />3.306878e-6 weeks <br />7.61e-7 months <br /> the air containing t the uniformly dispersed contents of the cylinder would be about 0.3 millirem.

It was also estimated that the bone surface dose to a person standing outside  ;

I for 8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br /> in the maximum concentration in discharged air at 0.5 km from such I an e.'ent would amount to 0.0035 microrem.

I Thesa estimated doses and the tabulated activities of the radioisotop*s clearly  ;

! Show that the radiological risk they represent is negligible in comparisen to the normal backoround radiation dose rate of approximately 106 millirem per  ;

year to a person (disregarding radon and daughters in inhaled air). I 1

Carbon-14 presents a different case from that of the isotopes listed in the table. Carbon-14 is.of particular interest because of the presence of about

, 5 pCi C-14 per gram of the carbon available in the environment (e.g., in atmospheric carbon dioxide) at the ground surface. Carbon-14 has a half-life  !

i of about 5730 years, and in fossil fuels such as petroleum products, it has I

decayed to much smaller specific activities. AlChem!E has stated that there is  ;

no plan to enrich elemental carbon, but it is nevertheless of interest because l l

l it is a constituent of some compounds which can be used for processing other i elements, e.g., in dimethy1zirc to enrich zinc isotopes. In a l' 'er of July L 20, 1988, the applicant estimates that 4 kg of dimethylzinc conteining C-14 at J 5 pCi per gram carbon and enriched to 100 percent would as a resu,t contain j j 0.005 microcurie C-14. Two other factors sake thi' -sear very conservatively l

! large; one is that the carbon in the dimethylzine will be derived from  !

petroleum. The other is that the different isotopes of carbon will be randomly

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distributed with regard to the different isotopes of zinc, for example, and l thus enrichment of carbon-14 will be inefficient.

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The list of naturally occurring radionuclides in Table 1 was prepared from a j comprehensive list of chemical compounds which can be used for isotope l enrichment in these centrifuge machines. For these radionuclides, it is found I that enrichment in this facility presents no radiological hazard, either to the I

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1 workers in the plant, or to the public. It is recognized that AlChemIE might, in the f uture, consider other chemical corrpounds for feed, which could result in enrichment of naturally occurring radionuclides other than those addressed above. AlChemIE r9 cognizes that the State of Tennessee has jurisdiction with regard to radiological protestion from naturally occurring radionuclides, and

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that before enriching any naturally occurring radionuclides where a radiological hazard might be created, they should consult with the Tennessee Department of Health and Environment.

B. Waste Disposal The experience that the Department of Energy has had with the centrifuge astbinet in their te: ting pr:gr:: has sh n that failurcs arc infrequent.

AlchemIE's experience should be similar. Nevertheless, occasionally a machine l

will fail, informally described as "crashing " A rotor is unuseable when it has "crashed" and must be replaced.

. The disposal of the destroyed rotor and/or other components involved in the I

failure is complicated by at least two factors, viz., (1) the contamination of the components with uranium, and (2) the need to protect the classified informa- ,

I tion aspects of the components from public disclosure. The applicant has executed an agreement with the Department of Energy to receive the failed com-

ponents for disposal. The Department maintains a disposal area for such pur- l poses. A copy of the Department's letter to AlChemIE on this topic is included I as Appendix 0 to this report. There are no other radioactive wastes requiring f

i disposal from AlChemIE operations.

The staff concludes that appropriate arrangements are present for the disposal f I

of all contaminated waste.

t C. Decomissioning i i

At the end of life of the facility, it is likely that many centrifuge machines

! which are still in use will be contaminated with uranium. Their disposal j related to the dismantling of the facility upon decommissioning will be con-sistent with the approach described in the section above on waste disposal, i

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1 i.e., the transfer of all contaminated, classified components to the Depart-ment of Energy. The AlchemIE agreement with the Department of Energy, as described above, encompasses all machines, including those extant at the time of decommissioning.

The staff concludes that the contaminated machines will be adequately disposed

, of upon decommissioning. i 1

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l V. SAFEGUARDS PROVISIONS

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The only special nuclear material the applicant will be licensed to possess will be the fixed contamination on the internal surfaces of the centrifuge

rotors and process piping. Receipt on the site of any fissile material at any concentration will be prohibited by conditions of the construction permit.

Under the provisions of the Commission's regulations in 10 CFR Part 2.790(d)(1),

information related to an applicant's physical protection or material control and accounting program for special nuclear material is withheld from public disclosure. Therefore, specific information related to the applicant's safe-guards provisions are not discussed in this report. The information has, however, been provided to the Atomic Safety and Licensing Board.

With respect to the applicant's technical qualifications to perform the safeguards functions as required by the security plan described above, many of those functions may be performed without any previous specializeo training or experience except for that related directly to the safeguards provisions.

The construction permit and the operating license will include a license condition incorporating the Security Plan, and a condition that no activities will be undertaken until such time as the NRC regional inspec. tors have been assured that the safeguards functions are completely undcritnod, all appropriate training has been accomplished, and there is adeqJate staffing to accomplish the objectives. On this basis, the staff concludes that the applicant is technically qualified.

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VI. PROTECTION OF CLASSIFIED INFORMATION l

Information pertaining to centrifuge machines is to be controlled in accordance with Chapter 12 of the Atomic Energy Act and Executive Orders 10865 and 12356.  !

Procedures for granting access to individual licensee personnel are set forth j in the Commission's regulations in 10 CFR Phrt 25, "Access Authorization for

Licensee Personnel." Procedures for obtaining approval for facilities licen-

] sees' use for safeguarding classified information (Secret, Confidential National i j Security Information, and Restricted Data), received or developed in conjunction }

with licensed activities, are set forth 'n the Commission's regulations in 1

10 CFR Part 95, "Security Facility Approvri and Safeguarding of National Secu-j rity Information and Restricted Data."

l The applicant has submitted information in the Security Plan for AlchemIE i Facility 1-CPDF pursuant to 10 CFR Part 95. Because of the nature of the  ;

i information the NRC staff considers the Security Plan to be proprietary informa-tion within the meaning of 10 CFR 2.790(a)(1)(i). Therefore, detailed informa-

l. tion pertaining to the methods and procedures used by the applicant to meet the I requirements of 10 CFR Part 95 cannot be discussed in this report. I A copy of the Security Plan will be prov <1ed to the Atomic Safety and i

l Licensing Board upon ccmpletion of the staff's review.  !

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VII. ADVISORY COMMITTEE ON REACTOR SAFEGUARDS In acc0rdance with Section 182b of the Atomic Energy Act and 10 CFR 50.58, the application was referred to the Advisory Committee on Reactor Safeguards for review and report. The ACRS reviewed the application and on October 6, 1988

discussed the application at its 342nd meeting. Following that meetin0, the i

ACRS issued a letter report to the NRC Chairman in which the ACRS stated its

] support for issuance of the license, subject to the implementation of the planned safeguards and security controls. This letter is included here as l 1 .

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VIII. FINANCIAL INFORMATION Although the staff has performed a substantial portion of the financial review, other agency commitments have prevented the completion of the review and  ;

evaluation. The staff's final evaluation and conclusions with respect to financial information will be presented in a supplement to this safety evaluation report upon completion of the staff's review. l

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l l IX. CONCLUSIONS

• l Based on the staff's review and evaluation to date, as discussed in the previous sections of this report, the staff concludes the following:

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1. The applicant has described the proposed design of the AlchemIE Facility 1-CPDF, including the principal architectural and engineering criteria for the design, and has identified the major features or components incorporated therein to assure adequate protection of the common defense and security.

2. The applicant is technically qualified to modify the existing facility (AlchetIE recility 1-CDDr) in such a way at te atture the adequate protection of the common defense and security.

3. The requirements of 10 CFR Part 51 have been met by the staff's issuanct  ;

of its Finding of No Significant Impact as based on the staff's Environ- I mental Assessment; therefore, upon the required findings of financial qualification and with regard to provisions for security of information, the construction permit and operating license for the AlChemIE  !

Facility 1-CPDF should be issued as proposed, r

4, in accordance with 10 CFR 50.56 an operating license should be issued to  ;

all Chemical Isotope Enrichment, Inc. for Facility-1 CPDF if all conditions  ;

of the construction permit are met, f

"The staff's conclusion as to (1) whether or not Applicant is financially qualified to modify the existing facility (AIChem!E Facility 1-CPDF) in such a way as l to assure adequate protection of the common defense and security and (2) whether l the issuance of a construction permit authorizing the modification of the AlChem!E Facility 1-CPDF will not be inimical to the common defense and security, will be set forth in a supplement to this SiER.

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t l l l APPENDIX A '

1 I

FEDERAL REGISTER NOTICES AND NRC STAFF PAPER TO COMMIS510N i 1

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PLOLICY ISSUE March 23, 1988 srcy-es-88 For: Th2 Commissioners From: Victor Stkilo, Jr.,

Executive Director for Operations subject:

FC:EFA RE0!!,TER NOTICE OF 0FFCRTUNITY FOR HEARING ON ALCHEMIE APPLTCXTIONS

Purpose:

To obtain Connission approval for issuance of a notice of opportunity for hearing that differs from the standard Part.50 notice.

Background:

The Department of Energy intends to sell its uranium enrichment

, centrifuge machines to the All Chemical Isotope Enrichrent Ccmpany (AIChem!E). The machines will not be used to enrich uranium. They will be used to enrich stable (non-radioactive) isotopes.

! AlChem!E sut,<itted two license applications on November 17, 1987 -

I pursuant to 10 CFR Part 50. Two applications are necessary because the machines are intended for use at two locations, viz.,

the Centrifuge Plant Demonstration Facility (CPDF) on the Federal reservation at Oak Ridge, Tennessee, and a new private facility to be built near Oliver Springs, Tennessee.  ;

Since the CPDF at Oak Ridge is already constructed, but will be modified, the applicant has requested both a construction pemit ar,d operating license for that facility. The application for the Oliver Springs facility is for e construction pemit only.  !

Contact:

A. Thomas Clark, Jr. , hM55 i 492-0697 l g5 s , .- _ 'li y ') ,,

t /

The Ccrmissioners 2 Discussion: Even though the centrifuge machines will not be used to er.f tch uranium, a production facility license is nevertheless required under the Cctrission's regulations and the Atomic Energy Act, since the machines are "designed or used for the separation of isotopes of uranium" (10 CFR 50.2 see also Atomic Energy Act i 11 v.). However, since they will be used only to process non-radioactive isotopes, there is no radiological health and safety concern with respect to the cperation of the machires.

The only licensing issues of importance in connection with such a license are those asscciated w'th assuring adequate prctection of comon defense and securit" (safeguardo issues). Although screofthemachir.esaresligbtlycontaminatedwithuranium (actual figures are classified information), the safety irplications of the quantities are negligible and would be adequately controlled by routine licenses under Parts 40 and 70.

The Corrission has instructed the staff, in connection with processes involving uranium hexafluoride, to consider both, the radiological and non-radiological hazards of licensed material see "Staff Requirerents' memorandum. SECY-86-99, October 2 . 986). In th's case, however, the chemical hazards, if any, are unreiated to materials licensed under the Atenic Energy Act. Such hazards would be subject to regulation by other agencies h . Environmental Protection Agency under the Resources Conservation and Recovery Act, and the Toxic Substances Control Act). Therefore, in this instance,~

the staff believes that the Comission should not exercise any .

authority it may have over chemical hazards that may arise from eperation of the machines to produce non-radioactive materials.

Accordingly, the staff proposes that hotices of Hearings be issued which are specifically tailoreo to assure that the review is limited to issues relating to cormon defense and set.urity and to required Naticnal Envirorcental Policy Act findings. Special notices are provided for in 10 CFR 2.10a(b). Since the Oak Ridge facility will use eristing machines in their present locaticns with only minor modifications, the staff preposes to publish a single notice on both the construction permit and operating license.

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The Cornissioners 3 i j  !

Coordination: The Office of General Counsel has reviewed the proposed

notice and has no legal objection. '

! The Ccesission approve publication of the enclosed Federal

, Reconsnen fatio2:

Register notices, b

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f h oi Stello, dr g J

f pecutive Directe  :

V for Operations s inclosures:

i 1. Federal Register Notice '

] for CPDF

2 Feceral Register Notice t j fcr Oliver 5prings i .w i

l Comissioners' comments or consent should be provided directly ,

l to the Office of the Secretary by c.o.b. Thursday, April 14, -

) 1988.

l 1 Commission Staf f Of fice coments, if any, thould be submitted l l to the Commissioners lilt Tuesday, April 5, 1988, with an infor-l mation copy to the office of tha Secretary. If the paper is of such a nature that it requires additional time for analytical  !

review and commer,', the Commissioners and the Secretariat should '

be apprised of when comments may be expected. [

t DISTRIBUTIO!!: l 1 Commissioners i OGC (H Street) k OI  ;

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1 GPA ,

i REGIONAL OFFICES r

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OGC (WF) l ACRS  ;

ASLBP ,

ASLAP '

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Fed:ral Resister / Vol. 53, No. 82 / Thusdav. April 28. 1988 / Notices 15 { 3 and s.erwal mfenahen contemina NUCLEAR Rt00LATORY Pnot to a decision on the reques'ed N.uJ.rs suma'ed m.'.n tne propn**3 COM2SSION cons ructan re t .t. .h Comm-stan These movers are within esemphone H; and wil bas e rnade the f.ndirgs reqwired by Isl c,f 5115 C $1:b(c). Cosem nent m the (Dochet No.60-404) the Atomic Energy Act of1954. as 5 me.re Ace sanended tthe Act) and the r

Receipt of Appiscation go, ,

Commission's n,!es and regulations.

M Rehecca W.muee, Construction Permit. AvailaWiity of Mmn Woe..cr twc , ', Applicant's Lavironmental Report, Construct oo Permit

'gi g3' n,,a Considero6en of laeuence of Pursuant to the Atomic Energy Act of l j p R Duc a&ex FD 4 a-2'* 6 45 am) Construction Permit and Notice el 1914. as amendeJ lthe Act), and the Oppe.tunity fee Heartog AA Chemical regv!ations in title to, Code of Fedetal s w occee us6aw: l Isotops Enttchment. loc, K.lchemie Fseplaner.s. Part So. ' Doarethe

] Faciatty 2 OHvet Sprin94 utensms of Prodution and Utisahen '

Notice is hereby gnen that the U S. Facdihes." Part 31. ' Leans.r s and Diviolon Advlsory Panet for Nuclear Regulatory Commission (the Reguatory Pol.cy and Procedures for i Networking and Commun6 cations Commission) has receis ed by letter. Ernironinental Prctection," and Fart 2 i Research and intrastructure; Weetin9 dated Nos*mber 17,1947, an ' Rules of Practice for Demesuc apphe ation. Ennrunmental Re port. and bcensing Procee&nss," notice as hereby ,

SaW Mah m bput hom .W om ha W ywdW W Mw  !

! The National Science Foundshori ChemicalIsotope Ennchment,Inc en Atomic Safety and Ocer. sing Boart l armounces the following meeting. to consider the apphcat on fded under

'..me ths.on Aduspy Panel for IAICI'emIE) for a constructirsn permit to }

use centnfugal machnes to eenc6i enn. the Act by AlChemlE (the arphr an't for l JC p

' t adir$,*de,

,"4 ra&oactne tsotopes at AlChemgg . a construct on permit hr A.Lherr.a.

Factbty.21ecated at Obver Sprtngs. Facihty.2 Obser Spnns (the facdit)).

l (Ws oM Trer Mo ned-tom a m, i Temssee The non radioactae w hich wt!! be located m Oln er Srnnst. l segm Mo:4%e an a m -3 m p m Tumnsee. r Us.e Mo Uni Rxm m May :4A isotopes would be used tn ene& cal, ime m Nanocal saence rundstan. tes, industnat and etwtrenmental and The beenna wdl be cenducted by an i

energy conservat on purpose,. Atomic Safety and Lcen Ing Bear 3 f C 5'rni Nw (Board) wh:ch has been des sneed by

! Tge etMeermt The centnfuse machines AlChemfE the Chatrinan of the Atomi: Safety and o"" intends to use for ennchms stable isoteres will be obtained under an Ucensing Board Panet Nonce as to the i Mo DrJ-Wo a m -5 r p m aereement with the United States membersh:p of the Board w di be i

M4:u-umpm->uupm Department of Energ). The machmes Fubbshed m the Federal Repster at a rac,ed w ere orig nally designed and later date. j constructei fer the Department. to Pursuant to 10 CTR 2 *a3. an Atemic (

4 Mes uhe ao a n-tne p m Safety and ucenntng Appeal Nard wdl l Grtwr Prwa Dr 5'epn 5 Wo;ff ennch.t g uraniet Although A!Che:r.1E Na%ral Saence Tour.Jetion Phone in, intends only to enrich stable isotopes e ercise the achenty and .;e *euew i l and wdl not ennch uranium, the Atomic function which would otherw ne be.

m-e ir. -

Pmn e'Meerst To pnude adoce and Energy Act oP954. as amendel and the eurened and performed by the . .

recommndabons concomirs %F sspport of Commission's regulations.10 CFR Fort Commission. Nonce as to the +

50. proude that equipment capacte of membership of the Appeal Nard wdite t ret = cite and cormroc.auons enord i and mtruirutc, ennching utardum is a proti stion Pubbshed m the Tederal Registee at a '

Asr v The wiimes =41 fxus on facthty requLnns a bcense from the later date tedwel manoemen rewed p aarare Carnmission Such a beanse would After the Commasion's staff has aJ pot.o usuo Tr.no =d snewde a snern possession of the centiduse performed a safety ruluation of th:. I r.nem cJ ment acnons and t Jaet machmes, but not the entithed stable apphcatien and an erwtronmental l

' peet n tootopes produced reuew, t" Commissten wSt coesider I

! Gud-T4 reue= and nal. ate rusard The appbcant has filed pursuant to malms afhrmatne ftn&ngs on Pe :1 l n s .1s n part sf the n'estan poesis for the Nabonal Ennrorgneatal Pobey Act and 1. a negatne ftndtng en item 3 and  ;

a a'di of 1W (NTf Al and t.he resc! aborts of au affirmatn e find <ee on item 4

. 0;o-Te 4.smo tren.La and ciport atan the Comrnission ta 10 CR Part 11, an s;etdied belcw. as a basis for the

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< m reuerth and to bets emude educe ord enstrorutental report.The report, which issuance of a construchon ter%t to the w-c.Jeteri canam,re s p,wt for ese.iues enutorunental considersticas appbcant. .

ninaue m Netwekes and Commuucet.as related to the proposed opershon of the renw.h saa trau.truci.re f actbry, to bema made as atlable at the luues Purm W the Ad W

.h.u > c a . es n e p a p o .te de re

^ ^'"'

! Commission's Pubhc Document Room at

! reuemeJ ire.Je v.fomeboa el a penneter) 3r17 H Street. NW. Washingtoa. DC. 1. Whother un accordance wsth the I

et cerf det 1 net.re es4.4 3 tedwal The NRC wd! complete an proustons of 10 CFR 50 34 the appbcant l j irf amwr rmne Jea s.3 u svanes enutor. mental e s alaation. ta has desenbed the prepsed des'sn of the  ;

e J precea! mf,rm. a puersr8 accordartce w tth 10 CR Part 11, to f acdsr> mduir.g. but not hmited io. 'he 1 aJ uJ. ale anmateJ =a the repouts deterr.a.ne tf the preparahoa of an prmcipal ardutectural and eetmeeneg i S ue ra s"e s a.re = 'Ut n e t pa+ 6 a a- f 6 enurer.tental tm;act stater

tent is cntena fer the des g i. and has ident.f.ed i

sl e e Ces emaeot a ee isn%c.e A t warranted or tf an enurortmental the maior featurvs or components '

I M net.u maue,. auntmert and Fm&ng of No mcorpraeci therem to assure adequate

$ gnif. cant impact are a;;te;riate This protechen cf the comme i defense and I

) C. - we W c,e e n W . c action wdl be the tableCl of a sec anty. l T1t ik &6-9353 F.lej 4.r-as s 45 arl 5.ibsequent natue .n the Fed.eal 2 % hether the app'icant is techn.cat ly {

. - ua m e, sepsi.r. cd f. anca.:> wu tm-e.ne  :

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15316 Federal Regist:' / Vol. 53. No. P2 / Thursday, AMI 28. 1988 / Notices proposed facility in ,ch a way as to As required by to CFR 2.714 a making a limited appearance may make assute adequate protechon of the pehtion for lease to intervene shall set an oralor written statement of position common defense and security. forth with particulanty the interest of on the issues. A limited appearance may 3.Whether thelesuance of a permit the petitioner in the proceeding, and be made at any session of the hearing or authori:ing construction of the facihty how that interest may be affected by the at any crelearing conference. subject ta will be inimical to the common defense results of the proceeding.The petition such hmits and conditions as may be and security should specincally exp' sin the reasons imposed by the Daard. Persons dentmg issue l'ursuant to National why ir.tervention should be pernutted to make a limited appearance are with particular reference to the requested to inform the Secretary of the Enthonrnental Policy Act (NEPA) follow ng factors:(1)The nature of the Commission 'within 60 days of the date

4. Whether, m accordance with the petitioner's right 2nder the Act to be of pablication of this Nohce.

tequirements of to CFR Part St. the made a party to :he proceeding. l2) the ccnstruction permit shculd be issued as Those armitted to intenene become nature and extent of the petitio ter's parties to the proceeding. subject to any proposed. property, financ'al or other interest m limitations in the order grantmg leave to if this proceedmg is not a contested the proctuding: and (3) the possible intervene, and have the opportunit) to proceeding, as defined by 10 CFR 2 4(n). effect of any order which may be present evidence and cross.examire the Board will determme the followmg. entered m the proceedirg on the witnes se;.

without conducting a de novo evaluation petitioner's interest. The petition should Non timely filings of petitions for of the application.(1) Whether the also identify the specific aspect (s) of the leas e to inten ene, amended petitions, application and the ricord of the subject matter of the proceedmg as to supplemental petitions, and/or requests proceeding contain sufficient Unich petitioner wishes to intervene, and shall specify whether such aspect ' for hearin will not be entertained information and whether the absent a eterminatien by the Commission staff s teuew of the relates to the construcuon permit or to Commission, the presiding officer or th e application has been adequate to the operating license or to both. Any Atomic Safety and Licensing Board that support the proposed findings to be person who has filed a petition for leave the petition anc'/or request whculd be made by the Direc. tor of the Division of M intenene vt who has been admitted nranted based upon a balancmg of the Industrial and Medical Nuclear Safety " a party may amend the petition factors specified in to CFR L714(a)(1)(t)-

on items 1-3 above, and to support, without requestmg leave of the Board.

up to fifteen (15) days before the first (v) and 2.714(d).

insof" sa the Commission's ilcensing A request for a hearing er a petition regi . <nents under the Act are prehearing conference scheduled in the proceedmg. but such an amended for leave to intervene shall be fi led by concerned. the issuance of the May 31,1988 with the Secretary of the construction permit proposed by the petition must satisfy the specificit, Director of the Diusion ofIndustrial and requirements described abos e. Commission. United States Suclear Niedical Nuclear Safety: and (2) whether Not later than fifteen (15) days before Regulatury Comminion. Washmgton.

ihe NEPA resiew the Commission's staff the s ecial prehearing conference. if one DC 20555. Attention: Docketmg and is he d. or. ti not, fifteen (15) days before Senice Branch. or may be delivered to conducled has been adequate.

if this proceeding becomes a Mp "8 " 11555 Rochille Pile (One White Flmt contested proceedmg with respect to d d p eeh a petitioner North) Rockville. MD. or to the issues relatmg to the construction yg;' '"Pp;e ' 'he p t cn to Comminion's Public Document 'toom.

$"ten ene which mus lu , , , ot 1717 H Street. NW., Washington. DC. b'y permit. the Board will consider and mihally decide, as issues m this the contentions tshich are sought to be the above date. At times when petitions lit gated in the matter, and the bases for are filed during the last ten (10) days of proceedmg. Itents 1-4 above. as a basis for determining whether a construction each contention, set forth with the notne penod. it is requested that the permit should be issued to the applicant, reasonable specifi:lty. Contentions shall P'h'i""P' *P'IY '

I"I0h' By May 31.19% the applicant must be limited to matters within the scope of Commission by a toll free telephone call the issues set forth in '.his notice. A f i le an answer to this notice pursuant to petitioner to Wutun Union at 1-@0-325eo Un who falls to file such a Minoud 1-600-342-4700 The Western 10 CFR 2 705, and any person whose Union ope;ator should be gun supplement which satisfies these interest may be affected by this proceeding. and who wishes to requirements with respect to at least one Datagram !denbhcation Number 3737 contention w..I not be permitted to and the following message addressed to participate a s a party in the proceeding Richard E. Cunningham. Director.

participate as a party.

must file a wntien petit on for leave to Those permitted to intervene beconie

• Division of Industrial and Medical intenene Requesta for 3 hearing and parties to the proceeding. subject to any Nuclear Safety. Office of Nucle 2r petitions for lease to mtenene shall be Material Safety and Safeguards.

limitat'ons in the order granting leave to filed m accordance with the intenute, and have the opportunity to Washing:cn. DC 20555 Pehhoner's Comminion's "Rules of Practice for participate fully in the conduct of the name and telephone number: riate Domestic Ucensmg Proceedings" in 10 hearing. includmg the opportunity to petition was mailed. plant name. and CFR Part 2. If a request for a heanns or present evidence and cross-eammine publication date and page numbee of the petition for leave to Intenene is fited by witneues. Federal Register notice. A copy of the the above date, the Commissten ur an petition should also be sent to the Office The Board will set the ttme and place Atomic Safety and hcensms Board for any special prehearing conleience. of the General Counsel. U S. Nuclear designated by the CommissMn or by the preheanns conferences and evidenuary Reeulatory Commission. Wa shmaton.

Chairman of the Atomic Safety and heanng. and the respectree notices will DC 205%5 and to Stephen A In es Esq .

Ucensms Board Panel, will rule on the be published in the Fede.al Resister. Rt. 7 Dison Road. Lenoir City.

request and/or petition. and the Any gctm who does not wish. or is Tenneuee. 3???1. ettorney for the Secretary or the designated Atomic not qualified. to become a party to this applicant.

Saf t> and bcensms Doard willinae a proceedmg may request permission to for fudher details. see the arphcahon not.ce of heanns er an appropnate make a limited sppearance pursuant to for a corstructi per nit dated order the piousions of to CFR : ?15 A prson Nosember !? 1.." and the .;phcant s

Tederal R: gist:r / Vol. 53. No. 82 / Thursday, April 28, 1983 / Notices 15317 environmental report dated Ncvember 1. radioactive isotopes would be used in The hearing will be conducted by an 1W. which. along with any medical. Industrial and environmental Atomic Safety and ucensing Board amendments or supplements thereto. are and energy conservation purposes. (Bostd), which will be designated by the or will oe available for public inspection The centrifuge macHnc: AIChem1E Chairman of the Atomic Safety and at the Commission's Pub!'c Document intends to use for enriching stable Ucensing Board Panel. Notice as to the Roum.1717 H Street. NW. Weshirgton. isotopes will be obtained under an membership of the Board will be DC. between the hnurs of 7.45 a m. and agreement with the Un'ted States published in the Federal Register at a 415 p.m.cn weetda>s As they become Department of Enenry.The machines later date.

available, a copy of the safety were originally designed and Pursuant to lo CFn 2185. an Atomic esaluation report by the Commission's constructed. for the Department. to Safety and ucensing Appeal Board will staff, the environmental asss .sment, the enriching uranium. Although AlChem!E exercise the authonty and the review propo. nstruction permit. the intends only to enrich stable isotopes function which would otherwise be t ra n se. af the prehearing and will not ennch uranium, the Atomic exercised and performed by tte confe.ma.es and of the heanna. and Energy Act of 1954 as amended, and the Commission. Notice as to the other relevant docurnents, will also be Commission's regulations.10 CFR Part membership of the Appeal Board will be as allable at the above location. Copies 50. provide that equipment capable of pubhshed in the Federal Registee at a of the proposed construction permit may ennching uranium is a production later date.

be obtained when as allable, by request facility requinns a license from the After the Commission's staff has to the Director. Division of Industrial Commission. Such a license would performed a safety esaluation of the ar.d Med. cal Nuclear Safety. U.S. govern possession of the centrifuge apphcation anJ an enuronmental Nuclear Regulatory Commission. machines. but not the enriched stable review, the Commission will condder Washington, DC 20555. Cupies of the isotopes produced. making affamative findings on ite ns 1 Ccmmisswn's staff safety evatuse., The applicant has filed, pursuant to and 2. a negative findmg on Ite'n 3. and report and environmental assessment, the National Environmental Pohey Act an affirmadve finding on item 4.

when available, may be purchased at of 1969 (NEPA) and the regulations of specified below, as a b s for the current rates. from the National the Commission in to CFR Part St. an issuance of a construct .1 permit to the enuronmental report.The report, which apphcant.

Technicallnformation Service.

Department of Commerte. 5285 Port discusses environmental considerations related to the prvposed operstion of the Construction Pernu,t Issues l'uthant to Royal Road. Spnngfield. Virginia 2:181. the Atomic Energy Act of 1954, as f acility. is being made available at the Deed at Readie. Maryland. this und Commission's Pubbe Document Room at Amended

" 0 "* 1. Whether,in accordance with the For i e N c e Regulatory Commission

t. eland C. Rouse.

CNet. Tuc/ Cs cle Safety Brer'cA Dmson of fri ment ie a at on in accordance with to CFR lyt St. to fas described the proposed design of the I'* N # "

te tnol ood Med. col .Welea r so r,ty.

'WS8 determineif the praparation of an pnnega arc 8't ua# and ug g nna environmentalimpact statement is entena f r the design. and has identified Int Doc swa rded w-M e 45 em) wirrented orif an environmental the major features or components emo coce tw+me assessment and Finding of No incorp rated therein to assure adequate

- Sian:ficant Impact are appropriate. This 'ction of the common defense and action will be the subject of a-IDodet %.5 m l subsequent notice in the Federal nt

2. W.Y'hether the apphcant is technically Receipt of Application for Register. and financially goahfied to modify the Construction Permit. Receipt of Prior to a decision on the requested construction permit. the Commission mshng facihty in sch a way as to Application for Facdity Operating assure adeqt, ate protection of the L6 cense. Availabihty of Applicant's will have made the findings required by cercmen defense and security.

Environmental Report, *,onsideration the Atomic Energy Act of 1954. as

3. Whether the issuance of a of Issuance of Construction Permit amended (the Act) and the construction permit adheritmg the and Facihty Operating License and Commission's rules and regulations.

Notice of Opportunity for HearMg; All Constru'.tlon Permit Nficaito th cor o f e and Chemicalisotope Enrichment. Inc.,

Centnfuge Plant Demonstratos hrsaant to the hma Enery Act cf man Facihty 1954. as amanded (the Act). and the Issae Pursuant to (NEPA) resulations in Title 10. Code of Federal Noin e is hereby paen th.t the U S Regalations. Part 50. ' Don:estic 4 Whether,in accordance w'th the Nuctur Regulatory Commasion (the Ucensins of Production and Chhsatior aquirements of to CFR Part 5L the ,

Commnen n) has recmed by letter. Facil. tie s." Part SL "bcensinar and c nitruct'on permit ar d oparating I d red Nos ember 17.1W. a;t Regulatory Pohcy enj Procedates fr- kense should be issed as proposed l

.irphcaten Enurnemertal ReMrt. and Fnuroumental Protection." and Pa i 2 If this proceeding is not a contested ,

4 efety Anah s.s Report from All

• Rules of Prectice for Domesta: proceeding. as defined by 10 CFR 2 :(n). J Chemical isotope f.n:i. hment. Inc . Ocers.r A Prvc.edms " notice is hereb) th Dard will determme the foht.

(NCNmlF) for : ccncructwn permit o nen that a heanng will bs held bef.re without conducting a de rue e i.bvion I

eJ facilits crerstme la ente to ue an Atom c Safety and utenstne Board. of the @phtation-(1)Whether th ertrif agal m4Wces to erru h cen- to u>rmder the 4 p5caten fJed under a; p'. men and the re:M c f the ta J.eactae isotopes at tre eut.rt the Act by AICremlE(the apphcant) for pt"teding centain saffa.cnt  !

Cen*nfo2.l tt ert Dm ef raton Fai.% a constructien permt fcr AIChemlE irfom atien .nd whe'her the )

p AT9r11;i . 'A 1 CFDil im ated at ) a cd41 CPDF 115e f aciht> l. w hgh w.M C( rr miss.cn t aff s reuew cf the iSe u.k RAr Erdcral reiersaton in operate at 'he Oak R.dge Federal apphcation ha, been adeq;ite to O..R'.. T mer P<- - resars own in O.i RWe, Tenneitte nprcr* Se prep, sed fM ans to ba l 1

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)

15318 Federr! Register / Vd. 53. Nr. 82 / Thur: day, April 28, 1988 I N;tices made by the Director of the Da lon of notice of heanng or an appropriate make a limitad appearance oursuant to Industrial and Medical Nuclear Safety order. the provisions of to CFR 2.715. A person on l'e rs 1-3 abose. and to sgport. As required by 10 CFR 2314, a maimg a hmited appearance may make insofar as the Cornmission's hcensmg pehtion for leave to intervene shall set an oral or wntten' statement of position requirements under the Act are forth with particularity the interest of on thJ issues. A limited appearance may umcerred, the issuance of the the petitioner in the proceedmg. and be rnade at any session of the hearing or nnstruction permit proposed by the how that mterest may be affected by the at any preheanng conference. subject to Direciar of the D:visivn of Ir.dt.strial and results of the proceeding.The petition such hmits and conditions as mav be ht.ac l .%ctear wie$ and (21 whether should specihcally explain the reasons impmed by the Board. Persons d'sinnse the NEf'A resiew the Comrnission's staff why intervention should be permitted to make a limited appearance are r onducted has bean adequte. with particular reference to the requested to inform the Secretary of the If this procetJir.g becomes a following factors:(1)The nature of the Commission within 60 days of the data contested proceedmg with respect to petitioner's nght under the Act to be of publication of this notice.

issues relating to the coneraction made a party to the proceeding:(2) the permit, the Board will consider and nature and extent of the petitioner's Those permitted to intervene become initially decide, as issues in this property fma ncial or other interest in parties to the proceeding, subject to any proceeding, items 1-4 abose, as a basis the proceedmg; and (3) the possible limitations in the order granting leave to ser datermai.ng whether a co istrutt,uri eff(ct of any which may be entered in intenene and have the opportunity to present evidence and cross examine permit should be issued to the apphcant. the proceeding on the petitioner's interest. The petition should also -

Operating Ucense identify the specific aspect (s) of the Non timely fdmgs of petitions for This application is complete enough to subject matter of the proceeding as to leave to intenene. amended petitions.

permit evaluation of the safety and w hich petitioner wisnes to inten ene, supplemental petitions, and/or requests etaitunawnt.limpeu uf the uperanon and shall specify whether auch aspect IA ..*aring wi!! not be entertained of the facility in the manner p oposed. relates to the construction permit or to absent a determination by the Therefore.upon completion of the the operating license or to both. Any Commission. the presiding officer or the a uJification of the faul.ty in O i Ridge, person who has fled a petition for lease Atomic Safety and Licensmg Board that Te inessee. In compliance with the terms to intenene or who has been adtrutted the petition anc' lor request.should be and conditions of the construction as a party may amend the petition granted based upon a balancmg of the permit and the apphcation. as amended, w thout requesting leave of the Board. factors specified in to CFR 2.714(aM1)(i)-

and in the absence of good rause to the up to fifteen (15) days befcre the first (v) and :514(d).

contrary. the Commission willissue to prehearing conference scheduled in the A request for a hearing or a petition the apphcant, without addi.ional pnor proceeding. but such an amended for leas e to intervene shall be filed by c mce. a cl.so ;03 fac.hty 1:cer.se petiHon must satisfy the specificity May 31.19M with the Secretary of the authonzmg operation of the f.icihty. requirements described above.

Commission. United States Nuclear Not later than fifteen (15) days before Rcgulatory Commission. Washington.

Operating Utense issue the special preheanng conference,if one DC 20555. Attention: Docketing and Whether. in accordance with 10 CFR is held. or. if not, fifteen (15) da) s before Senica Branch. or twy be oebvered to 50 56. an operating hcense should be the first prehea dng conferrice 11555 Rockville Pike (One White Flint issued. scheduled in the proceeding, a petitioner Nonh). Rockvule. MD or to the '

If this pror.eeding l>ce.ome, a shall file e supplement to the petition to Commission's Pubbe D,cument Room.

contested proceeding with respect to intenene which must include a list of 1717 H Street. NW., Washington. DC. by usues relatina to the operatma license the contunions which are pusht to be litigated in the matter, and the bases for the above date. At times when petitions 19 Board will make fmdings of fact an'd are filed dunng the last ten (to) days of rent.!uuan of law on those rnatters [,*,'fo'n*,"bI r : "Efey tentions shall the nota.e penod. it is requested that the ipm fit d in 10 CFR :JN4 be limited to matters within the scope of E'UD""" F *ENY " I"I ""

th May 31.19M. the appbc.nt mast Com, minion by a toll. free telephone call file an answer to this notice. putsaani to the issues set forth in this notice. A petitioner who f4ils to fde such a to W ntun nion at N32M Dn to CFR :701 and any persen whose mterest may be effected by this supplement which satisfies these M.uouri NM000 N Wown requirements with respect to at least one Union operator should be given em e.ha md who wides to contention wdl not be permitted to Datserem Identification Number 373,,

p tmpate .n a party ir the proceed,rg participate as a party. and the following message addressed to m hha a wntien petrinn for lease to Those permitted to inten ene become Richard E Cunnmgham. D. rector.

c t. runo Requests for a hc4rms ed DMsion af tr*dastral and Medical parties to the proceedina. subtect to any re%oni for lease to interwne sha'l be hmitahons in the order tranting leas e to Nuclear Safety. Office of Nuclear hied in au ordance with the intenene. and have the opportunity t( Matenal Safet) at.d Safeguards.

Ca.nrusion s ' Rules cf Pra e kr participate fu;!y n the conduct of the Wa shin gton. DC ;:0 555: Petitioner's Dan.ethc Litensmq Procs ed.rp in 10 hearing. includmq the opportunity to name and telephone numben date Cf R Part 2.11 J request for a $ car.nf or present evidence and cross etamin, petition was maded plant name; and p t.t.on fer le n e ta .n'enene is f.;cd by witnesses pubhcahon date and page nuinber of the i% abne J re, the C ,n.nanon or an lhe Board will set the time and placa Federal Register notice. A copy of the At").c S4fet) and Luenting Do ord for any special p eheanng conference, petioon should also be sent to the cffice dwiated b3 the Cominss.on c r by the preheanne ce n!crences and evidentiary of 'he General Cour sel U S Nuclear C% rm in ut tre Atc.c Nfst> anJ be arms. and the respectae notices wdi F e s Jlatory Comminion. Washmgton, t uenomg ! bard Panel. w dl ru!c ca ihe le pubbshed in the Federal Reitister. DC 00155 and to 5'ep'ren A Inmg. Fig re rwet am!5r ;rwn erd the An) penan who does not wish er is Ht ? Dun Rnad Lrno.r C.tv.

% retar) or the drugna'a d Ator,c not yaahf.ed to become a party to this Tennessee. 377*1. attorney for the

< ifety ard Licens r a Deard w dlinae e pro (eeJeg ray request perminuon to apphant

Fed:ral Register / Vol. 53. No. 82 / Thursday. April 28. 1988 / Notices 15319 For further details. see the applicatien requirements of the Atomic Energy Act The amendment was effective as of the for a construction permit dated of1954 as amended (the Act), and the date ofits issuance.

November 17.1987. and the apphcant s Ccmmission's rules and regdations. The The amendment reused tne Technical enuronmental report dated Novernber 1. Commission has made appropriate Specifications to provide specific 1987, which along with any findings as required by the Act and the actions to be taken when one of the amendrnents or supplements thereto. are Commission's rules and regulations in 10 batteries supplying DC control power to or will be auilable for public inspection CFR Chapter 1, which are set forth in the the 230 kv switchyard breakers is at the Commission's Pubhc Document hcense amendment. inoperable, and revised the time the Room.1717 H Street. NW., Washington. Notice of Consideration of lesuance of plant may operate with one taoperable DC. between the hours of 7.45 a m. and Amendment and Opportunity for battery. The amendment also more 415 p m. on w eckda As they become Heanns in connection with this action exphcitly defined the surveillances to be asallable.a cop) of the sefely was published in the Federal Register en performed in Modes 5 and 6.

evaluation report by the Commission's December 16.1987 (52 FR 47607) No The appl. cation for amendment staff, the environmental assessment, the request for a hearing or petition for comphes with the standards and proposed construction permit. the leas e to inters ene was filed following requirements of the Atomic Energy Act transcnpts of the prehearing this nctice. of 1954. as amended (the Act). and the conferences and of the heanna. and On April 11.1988 (53 FR 11922) the Commiss;on's rules and regulations. The other relesant documents, will a so l be Commission pubbshed an Ccmmission has made appropriate availsble at the above location. Cepies Enuronmental Assessment and Finding fmdings as required by the Act and the cf the prcpcsed construct.en permit may of No Sanificant Impact re!atina to Commissien's rules and regulations m to be obtained. w hen available. by request these amendments. CFR Chapter L which are set forth in the to the Director. Division of Industrial For f arther details with respect to the 1. cense amendment.

and medical Nuclear Safety. U S. y,w sea (1) the applicatMn for Netice of Considmtion ofIsmnce of Nuclear Regulatory Cornmissiur- amendment dated Noiember 13.198?. Amendment and Opportunity for Wahineton. DC 20555. Copics of the modified March 4,1988. (2) Amendment Hearing in connection with this action Coramissinn's staff gaiety evt.luatic. W 112 to License No DPRO (3) was pu%shed in the Federal Register en repert and enurenmental assessment- Amendment No.101 to License No. t. larch 22.1988 03 FR 9366).

w ben available, may be purchased at Also in connection with tNs action.

DPR-48. and (4) the Commission's currer.t rates. from the National related Safety Evaluation. All of these the Commission prepared an Technical lnformtien Seruce. p,,ns are available fcr public iny rction Ensironmental Assessment and Finding Depsrtment of Cemr erce 5285 Port at the Commission's Public Document of No Significant impact. w htch was Ro)al Road. Springf'c!d. Virginia 22161. Room.1717 H Street NW., Washington. published in the Federa; Register on D * <J 4t No is : e Ma.> t ar:d t>.. R .j M. and at $c Wunan POMc Ard 111W (D R 1.4BL day ut As nl igea I.ibrary.128 N. County Street. For further details with respect to the For ite W.h er F r@i sry Cm.ison a m noia 600AS. A ccpy of action, see (1) the application for i' ems (2). (3) and (4) may be obtained amendment dated Januir) 20.1958.(2) t eland C. N ouse, u;cn request addressed to the U.S. Amendment No.106 to License No.

Cte' r.c!Cule Satey Ewch Dms.w 'f Nuclear Regulatory Commission. DPR-72, and (3) the Commission's tv : r clar/Sted co!.Lclear Vet) Wash ngton. DC 20555. Attention: related Safety Fsaluation. All of these

[rR Doc w9P4 FJed 6:N'A 4 45 a-l D recter. Dinston of Reactor Pro;ects. items are as allable for pubhc inspection ewws cor4 ts*HW Da'ed at Rodul e. Ma >lani th a 15ih day at the Commisnon's Pubhc Document of Apol ma Room.1717 H Street NW., Washington, Fur The Lctest Resslatory Commiss<.on. DC, and at the Crystal River Pubhc (Dodet Nos 50-295 and 50-304) Library, %8 NW.. First Asenue. Cry stal Daniel R. Muller. Ra er.' Florida 32629.

Commonwealth Edison Co.; issuance p,c,,, p,,y, p,7,c w, fnq pa ,,an er of Amendment To Facir v and .wcur remects tu. tv. v. avnp cat 4 der i ve d 6s ::rd g,

Operating Ucense rec ens W se e Fe N N'h Ren' The U S Nuclear Reitulatory (fx ove. we3r1 Filed kWa. e 45 aml n.,g,y sihet. St.

Commission ICemm:s sion) ha s issued s w =GcoottesH W pec et t Sta crer P&ccr D ecore", //4 Amendment No.112 to Factht) D us e c'Reese Pre em / // U" < c' Operating IJcense No. DFR-39 and M. clear /teactor Ren!onon Amendment No 101 to faciht) (Dodet No. 50-302) (FR De 49r2 Fi!d 42*-an 4 is sel Opersting License No DPR-48 issued to e,w .e ecce res w i.as Commonwealth Edison Company (the Florida Power Corpa issuance of ticensrel. wtich trused the Tuhr al Amendment to Facility Operating Specihcations for operation of the La Ucenee R AILROAD RETIREMENT BOARD Nuclear Power Station Units 1 and 2 Ohe fac:hty) located ln Zion. !!hnon The The U S Nuc! ear Regulatory Agency Forms Submitted for OMB an.endinents were effectae as of the Com:nission (the Commission) has Review date of their issuance. issued Amendment No 106 to Facihty The amendrnents clanfy and upersde Operatmg License No DRP-?2 to the ActNCv: Railroad Retirement Boaro.

the Technical Specifications for Florida Power Corporation (the Action: In accordance w.th the messunng tha leakage through pressure 1.cansee). w hich resised the Technical Paperwcrk Reduction Act of 19V.(44 isdation s alt es Specihtanens fcr caeration of the tl S C Chapter 351. the Board Fas The apphcation for the amendment tr> stal Ri.er 3 Nuclear Generating sutmitted the followmg proposaMil for cer pl:es with the standards and ihnt. located m f%tra County. Flonda the collecticn ofinformanen to the l

0 APPENDIX B REQUEST FOR EXEMPTION l

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AKhemE, int M Chemical isotope Enttchment, Inc.

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lf RECEIVED $ l?

v Ye' Docket No. 50-603 pggy9 p Aggy 9 m v.s.nuctos ag:y,7;,f m,, ,

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s A'All !! nn cc:'ti cat;# O August 17, 1988 n '.',' " H 8'cben U

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U.S. Nuclear Regulatory Cc.T. mission '

Document Control Desk Office Nuclear Material Safety & Safeguards Washington, DC 20555 Attention: Mr. Hugh L. Thompson, Jr.

6A-4 NMSS Docket Material Gentlemen:

A1ChemIE, in its '.icensing application dated November 17, 1987 included as attachments the 10CFR50.33, General Information, and 10CFR50, 51 Non-applicability and Exemptions Requirements. These attachments have been revised and are being resubmitted as follows:

1. 10CFR50.33 - General Information

2. 10CFR50 - Nonapplicability

3. 10CFR50 - Exemption f.equests

4. 10CFR50 - Supplementary Information The above is applicable to AlChemIE Facility 1 -

CPDF.

Should you have any questions please contact Mr. W.A.

. Pfeifer at AlChemIE.

Respectfully submitted, ALCllEMIS,,INC.

ohn it. Smolser, Jr.

-Chief Executive Officer cc: Dr. A. Thomas Clark, Jr./NRC r

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10 CFR 50 EXEMPTION REQUIREMENTS Pursuant to the provisions of 10 CFR 50.12(a)(2)(ii), A1ChemIE hereby requests a specific exemption from the following Parts cf 10 CFR 50, for the reasons hereafter stated:

1. A special exemption is requested from 10 CFR 50.34(a)(10) and (b) (6) (v).

A. 10 CFR 50.34(a)(10) requires a discussion of the applicant's preliminary plans for coping with emergencies and references Appendix E as setting forth the items in said plan. A review of Appendix E shows that it concerns, "The potential radiological hazards to the public associated with the operation of research and test reactors and fuel facilities licensed under 10 CFR 50 and 10 CFR 70."

< Appendix ' I. Introduction, third paragraph >.

A1ChemIE is not operating research or test reactors or fuel facilities and, by project definition and the parameters of the license sought, will poss no "potential radiological release." The A1ChemIE facility is to be used for the production of stable isotopes.

B. 10 CFR 50.34 (b) (6) (v) also addresses emergency plans and references Appendix E.

C. Under the authority of 10 CFR 50.12 (a) (2) (ii),

the Commission may, upon application, grant exemptions from the requirements of 10 CFR 50 if "special circumstances" are present. Special circumstances are deemed present whenever "Application of the regulation in the particular circumstances would not serve the underlying purpose of the rule or is not necessary to achieve the underlying purpose o.T the rule."<ii).

D. As stated earlier, A1ChemIE will not be processing special nuclear materials and poses no threat of rediological release. SECY 88-88, dated June 7, 1988, states "The chemical hazards, if any, are I unrelated to materials licensed under the Atomic Energy Act."< COPY ATTACHED).

n E. The primary issue in NRC's granting AlchemIE a f license s assuring adequate protection cf common 7 '

defense and security. This has been addressed in J "

A1ChemIE's Security Plan. Also, and as published in

') Federal Register notices 53FR15317 and 53FR15315,

\ dated April 28, 1988, the requested license would p govern possession of the centrifuge machines, but C - not the enriched stable isotopes produced.

F. AlchemIE is developing handling, operating and emergency procedures for each chemical compound that j is to be processed. These procedures will be  !

reviewed and approved by DOE prior to use of any chemical compound in the Centrifuge Plant Demonstration Facility. Additionally, under its Air Quality Pervit from the Tennessee Department of Health an/ nvironment, A1ChemIE is required to report releases vf toxic gases.

For the foregoing reasons, A1ChemIE verily feels that special circumstances exist which make it appropriate and proper to exempt AlchemIE from 10 CFR 50.34 (a) (10) and (b) (6) (v), and pursuant to 10 CFR 50.12 (a) (2) (ii) A1ChemIE does hereby make ,

1 i application for said exemptions.

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APPENDIX C EXEMPTION 5

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7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMISSION In the Matter of  !

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) Docket No. 50-604

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, All Chemical Isotope )

Enrichment, Inc. )

)  !

EXEMPTION -

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I.

All Chemical Isotope Enrichment Inc. (the applicant) has applied for a (

4 construction perndt and an operating license to own and operate gas centrifuge [

, machines for the purpose of enriching stable isotopes ct the CPDF facility,

Oak Ridge, Tennessee. In order to enrich stable isotopes, AlchemIE is purchas- l ing centrifuge machines from the f-iartment of Energy (00E). The centrifuge l machines were originally designed and manufactured to enrich uranium, but  !

AlChemIE will not use them for that purpose.  !

Altnough the enriching of stable isotope is not ordinarily within the regulatory i authority of the Commission, any equipment or device capable of enriching uranium, if intended for commercial use, must be licensed by the Commission.

l ,

Since the centrifu, machines AlChemIE will obtain from the Department of i

Energy are capable of enriching uranium, their possession and use must be  !

licensed. The Consission rule which governs the licensing of production facil- j ities is 10 CFR part 50. Since all of the centrifuge machines proposed for use I

, at the CPDF facility have been tested using uranium hexafluoride, a thin film l 2

of a contamination has been left in each machine, primarily in the rotor. I i

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The deposited materila is uranyl fluoride U0 2F 2, reaction product formed when small amounts of moisture remaining in the low vacuum system react with the uranium hexafluoride. The Department of Energy has determined that the uranium contamination is sufficiently fixed that ',t did not carry over with either product or tails in tests with stable isotopes.

l 4

The applicant has conservatively assumed the occurrence of an accident which

, releases a fraction of the uranium and is then inhaled by a nee.chv operator, t

The resultatn dose is inconsequential. NRC staff analysis confirms this f conclusion. I II.

Section 50.34(a)(10) requires that applicants provide a discussion of prelimi- l

nary plans for coping with emergencies. Section 50.34(b)(6)(v) requires that  !

applicants provide plans for coping with emergencies, which shall include the -

i items specified in Appendix E to 10 CFR Part 50, "Emergency Planning and Preparedness for Production and Utilization Facilities,

l,

~

III.

t By letter dated August 17, 1988, the applicant requested an exemption from the 5

requirements of Section 50.34(a)(10), 50.34(b)(6)(v), and Appendix E to 10 CFR  ;

Part 50. The basis for the request for exemption is that the nature of facil-  !

l ity for which the applicant seeks a construction permit is such that an emer-

! gency plan related to radiological hazard is unnecessary and not consistent  !

with the underlying purpose of the regulation. l 1

l j The NRC staff has reviewed the applicant's request for exemption, considering '

] the limited issues the Commission established for findings in its notice published in the Federal R_egister on April 28, 1988 (53 FR 15317). ,

l j In its notice the Commission states that a license issued for the purposes f stated above would govern postession of the centrifuge machines, but not the enriched stable isotopes p oduced. Accordingly, for the purposes of licensing,  !

the only emergency planning to be undertaken by the applicant would be related i r C-2  !

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to radioactive materials. Since the only ra,11oactive material lunder considera-tion is the uranium firmly fixed to the cen'rifuge machines, there is no potential radiological hazard for which emergency planning is necessary.

Based on the above discussion the NRC staff finds that the requested exemption is acceptable.

IV.

Accordingly, the Commission has determined that, pursuant to 10 CFR 550.12(1),

the exemption is authorized by law, wil': not rpesent an undue risk to the public health and safety, and is consistent with common defense and security.

The Commission has determined that the special circumstance which is present to support an exemption is described in 10 CFR $50,12(a)(2)(ii) and (vi).

Accordingly, the Commission hereby grants a permenent exemption from the requirements of 10 CFR $50.34(a)(10) and $50.34(b)(6)(v).

Pursuant to 10 CFR 51.32 the Commission has determined that the granting of this exemption will have no significant impact on the environment.

For further detail 3 with respect to this action, see the request for exemption dated August 17, 1988, which is available for public inspection at the Commission's Public Document Room,1717 H Street NW, D.C.

This exemption is effective upon issuance.

, FOR THE NUCLEAR REGULATORY COMMISSION Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety Office of Nuclear Materials Safety' and Safeguards Dated at Rockville, Maryland, this day of , 1988.

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APPENDIX 0 LETTER FROM DEPARTHENT OF ENERGY e

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. Al Chcmscof isotoce Enrenment. Inc 3, ,

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U.S. Nuclear Regu.1atory Commission Document Control Desk Office Nuclear Washington, DC Material Safeguards & Safety 20555 Attention: Mr. Hugh L. Thomspon, Jr.

6A-4 NM00 Docket Materials Gentlemen:

The NRC letter dated April Jr.,

4, 1988, from A. Thomas Clark, to William A. Pfeifer requested documentation from the Department of Energy stating that they will accept for disposal failure orallupon andendanyofcentrifuge machines upon individual find enclosed a letter life of the entire facility.

i Please  !

of classified matter. from DOE indicating their acceptance It should also be noted that AlChemIE has agreed to remove any toxic prior or hazardous to transfer to DOE material for disposal. from classified equipment Should you have any questions please contact Mr.

Pfeifer at AlChemIE. W.A.

Sincerely,

-ALCHEMIE; INC.

I/ \ . \

( / M f Joh'n H. 3melsar, Jr.

Chief Executive Officer JHS/WAP/bc Enclosure one those"'

Cece PoA. Swte N2 8 702 ano.s Abe. CCE R'oQe. IN 37830 (o15) .162

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Department of Energy P. O. bu E Oak Ndge. Temenees 37831 Mr. John H. Smelser, Jr. JUL I f pga AlchemIE Corporation Pine Ridge Office Park Suite A202-B t 702 South Illinois Avenue Oak Ridge, Tennessee 37830 Dear Mr. Smalsert DECONTAMINATION AFn DISPOSAL Reference is made J the April 4, 1988, letter from NRC to AlchemIE and Mr. Dennis Bell's April 7, 1988, letter to me concerning DCE's acceptance of centrifuge machines for dispotal.

The bill of sale (Contract No. DE-ROO5-880R21776) discusses decontamination and disposal in paragraph 7 which states that AlchemIE is responsible for decontamination and disposal of all classified or contaminated equipment. If no commercial disposer exists and AlchemIE will annually provida documentation of its efforts to sucura disposal services, DOE is willing to accept for disposal, on a full cost recovery basis, classified (uncontaminated except for uranium) equipment. DOE is not in &

position to accept hazardous or mixed vaste (classified equipment contaminated with hazardous material and uranium).

If further discussion concerning this importaht' subject is deemed necessary please call me at 576-0492.

Sincerely James C. Hall Assistant Manager for AD-4 22 :WWis trom/drn Enriching Operations

i d

4 APPENDIY E l

LETTER FROM ADVISORY COMMITTEE ON REAC70R SAFEGUARDS I

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[t,3 Kf 0g1'o, UNITED 5TATES

! ,, g NUCLEAR REGULATORY COMMISSION

{

o, g j ADVl3ORY COMMITTEE ON REACTOR SAFEGUARDS W ASHINGTON, D. C. 20066 4.....f October 13, 1988 The Honorable Lando W. Zech, Jr.

Chairnan U.S. Nuclear P.eguletory Comissior Washingtor., D.C. 20555

SUBJECT:

LICENSING Of ALL CHEll! CAL ISOTOPE ENRICHttENT, INC. FACILITIES i

During the 342nd meeting of the Advisory Connittee on Reactor Safe- l guards, October 6 'i,1988, we discussed the applications of All Chemical  ;

l Isotcpe Enrichrert, Inc. (ALChen!E) to rodify and operate a facility for the separation of stable isotopes at Oak Ridge, Tennessee, and to I l construct a similar facility at Oliver Springs. Tennessee, near Oak l Ridge. Durir.g the meeting, we had discussions with representatives of '

the NRC staff, the Applicant, and the Department of Energy. We also had the benefit of the do:urents referenced.

The Apr licant plans to use centrifugal enrichment machines purchased frem the Department of Energy. These nachines were designed and built for the enrichment of uranium in a demonstration program, and offered for sale when the project was abandoned. The proposed use is for the corrrercial enrichment of a wide variety of stable isotopes, in larger quantities than have heretofore been available.

Most of these machines, because of their prier use, are slightly contam-inated with uranium, in the centrifuges and in the piping. The amounts totc1 a few tens cf kilograms. The average enrichment of the uraniun 235 is very slightly over the natural concentration of uranium 235 in natural uranium, again because of the earlier use.

There are two principal licensing issues. One involves the potential release of the uranium centaminant, either through leaching into the process stream or through an accident, with consequent health effects to the exposed population. The other involves safeguards, because these machir,es were designed to separate uranium isotopes, and thereford, regardless of their intended use have that capability.

The NRC staff has concluded that the potential for release of uranium is small, both because of the adherence of the contaminant to the surfaces it new covers and because of the snall quantitics involved. It has estimated that, even in the event of a substantial accident, the public expesure would be negligible. We concur in this finding.

!93 iw

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. . The Honorable Lando W. Zech, Jr. October 13, 1988 The safeguards issues have to do with protecting the machines and inspectino the product. It is proposed to deal with these issues through a conventional program of personnel clearances, area controls, and random unannounced inspections. The NRC staff has expressed satis-faction with the proposed program, and we have no reason to disagree.

Subject to implementation of the planned controls, we support issuance of the preposed licenses.

Sincerely, i

William Kerr '

Chairmn

References:

1. U.S. Nuclear Regulatory Comission, Office of Nuclear Material safety and Safecuards, Safety Evaluation Report Related to the Construction Mcdification and Licensing of the ALChem!E Facility-1 CPDF, October 1988

2. U.S. Nuclear Regulatory Comission, Office of Nuclear Material '

Safety and Safeguards, Safety Evaluation Report Related to the Application for Construction Permit for ALChemIE Facility 2, Oliver Springs, October 1988

3. Security Plan for All Chenical Isotope Enrichment Inc., ALChemIE Facility 1 - CPDF, Revision 3. August 1988 (Proprietary) 4 Security Plan for All Chemical isotope Enrichment, Inc., ALChem!E Facility 2 Revision 3, August 1988 (Proprietary) t l

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) CHR0t40LOGi 0F PRINCIPAL CORRESP0tiDEf4CE  !

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APPENDIX F CHRONOLOGY OF PRINCIPAL CORRESPONDENCE November 17, 1987 Letter from AlChemIE forwards application for CPDF to construct and operate a stable, non-radioactive isotope enrichment facility. Enclosures include 10 CFR 50.33 General Information, CFR 50.51 Non-Applicability and Exemption Requirements, Safety Analysis Report, Environmental Report, and Security Plan December 22, 1987 Identical letter sent to local Officials on receipt of applications for Oliver Springs. Encloses copies of application forwarded by Noverrber 17 letter from AIChem:E.

December 29, 19?? ' l. Pfeiffer, A1Cher!E, frc

. A.T. Clark, NRC, encicsc:

a list of additional information needed.

January 19, 1988 Letter to NRC frem D. Bell, AlChemIE, on January 7, 1988 meeting and safeguards protective measures (enclosure proprietary).

February 3, 1988 Letter to NRC from D. Bell, AlChemIE, encloses additional information in response to December 28, 1987 letter.

February 16, 1988 letter to NRC from D. Bell, AlChemIE, encloses additional information as a result of February 9, 1988 meeting, Stockholders and AlChemIE-DOE contract for the sale of the centrifuge equipment at GCEP.

February 19, 1988 Letter to NRC from D. Bell, AlchemIE, encloses omitted descriptivt material inadvertently a tr.luded f rom February 3, 1988 additional information '.etter.

February 22, 1988 Letter to NRC from D. Bell, AlChemIE, on exuption requested to allow AlChemIE to start construction on a temporary non-nuclear storage facility.

March 8, 1988 Letter to Wm Pfeiffer, AlchemIE, from A.T. Clark, NRC, requests additional antitrust information.

March 15, 1988 Letter to A.T. Clark, NRC, from AlChemIE provides additional information requested at February 9, 1988 meeting for environmental review.

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i March 16, 1988 Letter to NRC from D. Bell, AlchemIE, encloses Revi- .

sion 1 to Security plan for both facilities and ship-  !

ment to equipment. States A1ChemIE will provide Section 19.0 Nonproliferation Controls, which has been ,

omitted until finalized (enclosures considered  ;

proprietary).

March 22, 1988 Letter to NRC from D. Bell, A1ChemIE, encloses informa-  !

tion regarding supplemental anti-trust information.  :

! States the information should supplement the Justice '

Department review of DOE's sale of surplus equipment to A1ChemIE.

3 April 4, 1988 Letter to W. Pfeiffer, A1ChemIE from A.T. Clark, NRC, '

requests additional information on disposal of centri- ,

j fuge machines and documentation by DOE that they will accept for disposal all and any machines upon indi- ,

vidual failure or upon end of life.

April 14, 1988 Letter to NRC from D. Bell, AlchemIE, encloses Section 19.0 of Security Plan, Rev. 1. Notes title l 3

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change from Nonproliferation Controls to Safeguards l (enclosure considered proprietary). '

4 April 19, 1988 Letter to NRC from D. Bell, AlChemIE, in' response to  !

verbal request of April 14, 1988 from A.T. Clark, NRC, '

1 on use of feedstock compounds listed in Table 5-1 of

]* SAR and corresponding tables in Environmental Reports.

- April 22, 1988 Letter D. Bell, AlChemIE, from A.T. Clark, NRC, 1 forwards copies of FR Notices dated April 22, 1988,  !

on Receipt of Application and Opportunity for Hearing, f May 6, 1988 . Letter to D. Bell, A1ChemIE from A.T. Clark, NRC,  :

' encloses FR Notices on Establishment of Boards. l

} i 3 May 10,1988 Letter to D. Bell, AlChemIE from A.T. Clark, NRC, l requests additional information related to environ-j mental report encloses list of information needed.

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i May 24, 1988 Letter to NRC from D.L. Bell responds to May 10, 1988 l j . letter requesting additional information related to I i environmental reporte l May 16, 1988 Letter to NRC from D. Bell, AlchemIE, encloses I

] up-to-date list of AlchemIE stockholders. ,l June 3, 1988 Letter to W. Pfeif fer, AlchemIE, from A.T. Clark, NRC, f encloses request for additional information needed to  !

4 environmental report, and notes cost information '

I related to safeguards license 2 condition.  !

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I June 9, 1988 Letter to NRC from J.H. Smelser, A1ChemIE, responds  ;

to concerns expressed by State of Tennessee in their  !

request to participate. l June 21, 1988 Letter to WmPfeiffer A1ChemIE, from A.T. Clark, NRC,  !

, requestsadditionalInformationneededfor i environmental report, refers to June 9, 1988 from

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t July 8, 1988 Letter to NRC from J. H. Smelser, A1ChemIE, informs 1

NRC of annual stockholder's meeting on June 18, 1988 i and election of Board of Directors and resignation of

, Dennis Bell.

July 11, 1988 Letter to 8. Vogler, NRC Antitrust Counsel, from l l James R. Weiss, Department of Justice, states ". . .no I basis upon which to conclude that an antitrust

{ hearing is necessary rer rding AlChemIE's 4

spplication..."

4 July 14, 1988 Letter to NRC from J.H. Smelser, AlChemIE, encloses -

l Revision 2 to Security Plan, f July 20, 1988 Letter to NRC from J.H. Smelser AlChemIE, responds l

to June 21, 1988 letter from A.T. Clark on additional  !

information on enrichment for naturally occurring  !

radioisotopes.  !

i July 20, 1988 Letter to NRC from John H. Smelser, A1ChemIE, refers  :

to April 4, 1988 letter from A.T. Clark and encloses [

, documentation from DOE dated July 14, 1988 on  ;

decontamination and disposal of centrifuge machines.  !

July 22, 1988 Letter to NRC from John H. Smelser, A1ChemIE, l!

responds to A.T. Clark's June 3,1988 letter and i

' encloses financial information (enclosure considered proprietary). -

August 2, 1988 Letter to NRC from John H. Smelser, AlChemIE, j encloses Revision 3 to Alchem!E's Security Plan.  ;

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, August 8, 1988 Letter to NRC from W.A. Pfeifer, AlChemIE, withdraws i request for security facility approval for Pine Ridge  !

Office Park. L l

August 17, 1988 Letter to NRC from John H. Smelser, AlChem!E, encloses  !

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revised 10 CFR 50.33 General Information, 10 CFR 50 l Nonapplicabliity, Exemption Requests, Supplementary j j It f raation. l August 18, 1988 Letter to AlChemlE from A.l. Clark, NRC, requests I additional information for financial review.

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August 19, 1988 Letter to W. Burnside, NRC, from W. A. Pfeifer, AlchemIE, on office space.

August 31, 1988 Letter to NRC from John H. Smelser, AlChemIE, states July 22, 1988 letter should have been declared proprietary.

September 8, 1988 Letter to John H. Smelser, A1ChemIE, from L. C. Rouse, NRC, encloses Notice of Issuance and Finding of No Significant Impact, and "Environmental Assessment Related to the Proposed Construction and Operation of A1ChemIE Facility-1 CPDF."

September 12, 1988 Letter to NRC from John H. Smelser, AlChemIE, encloses financial information.

September 29, 1988 Letter to H. Thompson, NRC, from M. H. Hobley, Tennessee Departroerit of Health and Enviivinent regarding enrichment of naturally occurring radioisotopes.

October 13, 1988 Letter to NRC Chairman from Advisory Committee on Reactor Safeguards, supporting issuance of the proposed licenses.

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