ML20205Q576

SER Re Application for CP for Alchemie Facility-2 Oliver Springs.Licensee Technically Qualified to Construct & Operate Proposed Facility in Such Way as to Assure Adequate Protection for Common Defense & Security

ML20205Q576
Person / Time
Site:	05000000, 05000603, 05000604
Issue date:	10/31/1988
From:	NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:
Shared Package
ML20205Q569	List: ML20205Q566 ML20205Q572 ML20205Q576
References
NUDOCS 8811090288
Download: ML20205Q576 (21)

Text

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i SAFETY EVALUATION REPORT RELATED TO THE APPLICATION FOR CONSTRUCTION PERMIT FOR ALCHEMIE FACILITY-2 OLIVER SPRINGS ALL CHEMICAL IS0 TOPE ENRICHMENT COMPANY OLIVER SPRINGS, TENNESSEE DOCKET NO. 50-M4 U.S. NUCLEAR REGULATORY COMMISSION OFFICE OF NUCLEAR MATERIAL SAFETY

AND SAFEGUARDS OCTOBER 1988 i

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. TABLE OF CONTENTS Page I. INTRODUCTION ............................................ ......... 1 II. APPLICABILITY GF PART 50 0F TITLE 10 .................... ......... 4 A. Non-Applicability ............................................. 4 B. Exemption Request ............................................. 4 C. Sections Applicable But Not Requiring Action .................. 5 III. BRIEF SITE DESCRIPTION ............................................ 7 IV. SAFETY ANALYSIS ................................................... 8 A. Radiation Dretactinn .. ....................... ........ 8 B. Waste Disposal ................................................ 12 C. Decommissioning ............................................... 12 V. SAFEGUARDS PROVISIONS ............................................. 14 VI. PROTECTION OF CLASSIFIE0 INFORMATION .............................. 15 VII. ADVISORY COMMITTEE ON REACTOR SAFEGUARDS .......................... 16 VIII. FINANCIAL INFORMATION ............................................. 17 J

IX. CONCLUSIONS ....................................................... 18  !

. 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 1

APPENDIX 0 - Letter f rom Department of Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . 0-1

, APPENDIX E - Letter from Advisory Committee on Reactor Safeguards ....... E-1 APPENDIX F - Chronology of Principal Correspondence ..................... F-1 I

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r I. INTRODUCTION The All Chemical Isotope Enrichment Company (AlChemlE) filed with the U.S.

Nuclear Regulatory Commission (NRC) an application, dated November 17, 1987, for a license to construct the AlChemIE Facility-2 Oliver Springs. AlChemIE intends to use the facility to enrich stable isotopes. In order to enrich stable isotopes, AlChemlE is purchasing centrifuge machines from the Department of Energy (00E).1 The centrifuge machines were originally designed and manu-

.actured 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 authorized to regulate the commercial use of radioactive materials. The Comm.istien also may exerci:;c jorisdicticr over ha:ardcus materials intimately associated with radioacthe materials undar its i jurisdiction. However, the Commission has no jurisdiction over non-radioactive hazardous (or non-hazardous for that matter) materials separate and apart from its association with radioactive materials. For th'* reason, the enriching of stable isotopes is not ordinarily within the regulatory authority of the Commission. However, any equipment or device capable of enriching uranium, if intended for commercial use, is defined as a "production facility" and must be licensed by the Commission as stipulated by Section 11v and 101 of the Atomic Energy Act of 1954, as amended. Since the centrifuge machines AlChemIE will obtain from the Department of Energy are capable of enriching uranium, as stated above, their possession and use must be licensed. The Commission rule which governs the licensing of production facilities is 10 CFR Part 50.

20n April 7, 1986, 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 purposes, not involving the enriching of uranium, as further described herein and in their application. On December 5, 1986, AIChemlE 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 AlChem!E that a minimum of 250 machines were reserved at the Portmouth, Ohio 4 Gaseous Centrifuge Enrichment Plant. Contract negotiations between AltnemlE '

and the Department have proceeded from that time, in one particular for lease I

arrangements for the Centrifuge Plant Demonstration Facility, located at the  ;

K-25 complex on the Federal reservation at Oak Ridge, Tennessee.

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, The machines which A1ChemIE intends to use in the Oliver Springs facility have 31 ready been fabricated and tested by the Department of Energy. The machines were originally intended for use by the Department in its Gas Centrifuge Enrichment Plant (GCEP). The GCEP is located at the Departmert's enrichment site at Piketon, Ohio. AlChemIE intends to transport the machines from Piketon to Oliver Springs pursuant to 10 CFR Parts 25 and 95.  ;

On April 28, 1988, theCommissionoublishedanoticeinthefederalRegister (53 FR 15315) which indicated that the application had been received and that prior to a decision on the requested construction permit the Commission will have made the findings required by the Atomic Energy Act of 1954, as amended, l and the Commission's rules and regul?tions. The notice further indicated that a hearing will be held befors an Atomic Safety and Licensing Board tu consider the construction permit application. The Commission has instructed the staff, j in connection with processes involving uranium hexafluoride, to consider both the radiological and non radiological hazards of licensed material. In this case, however, the chemical hazards, if any, are unrolated to materials licensed under the Atomic Energy Act. Such hazards would be subject to regulation by other agtncies (e.g., Environmental Protection Agency under the i Resources Conservation and Recovery Act, and the Toxic Substances Control Act). Therefore, in this instance, the Commission has determined not to exer-  !

cise any authority it may have over chemical hazards that may arise from opera-tion of the machines to produce non-radioactive materials.2

As a result of the tests conducted by the Department of Energy, as described I above, the centrifuge machines and associated piping have been contaminated j with uranium. Because the purpose of the tests, in part, was to demonstrate

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enrichment, some of the uranium contamination is enriched in the uranium-235 isotope. Since enriched uranium is special nuclear material and a license is required for the possession of special nuclear material A1 Chem!E will be licensed under the pertinent regulation, 10 CFR Part 70, to possess the ur'nium contaminant permanently fixed to the machines and piping.

4 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 this report.

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A1ChemIE is also required to submit an environmental report in accordance with l 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 of the A1ChemIE Facility-2 Oliver Springs, September 1988.)

Details of the design and manufacture of the gaseous centrifuge enrichment machines are considered by the Federal Goverr ent to be classified informatfon requiring protection from public disclosure. The Commission's regult d ns per-taining to this topic are 10 CFR Parts 25 and 95. Part 25 establishes proce-

< dures for granting access to classified information. A1ChemIE employeCs and j

contractor personnel have been cleared by the NRC Security Division in accord-  ;

ance with those procedures. Part 95 establishes procedures for safeguarding  !

classified information. AlChemIE has submitted a security plan appropriate for i the A1 Chem!E Facility-2 OLIVER SPRINGS. This plar. is further discussed in 7

Section V of this report. .

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. II. APPLICABillTY OF PART 50 0F TITLE 10 A. Non-Applicability In recognition that the Commission's regulations in 10 CFR Part 50, "Domestic Licensing of Production ani Utilization Facilities," were intended to apply to  ;

nuclear reactors and fuel orocessing plants, the applicant has provided a list of those sections of the . lations which are not applicable, on their face, '

to the AlChemIE application. The NRC staff has reviewed that list and concludes that none of the listed sections apply to the applicant. For the convenionce of the reader, those sections are listed in Table 1. In a majority of instaices, these sections apply only to nuclear reactors (utilization facilities).

1 Table 1 i

Non-AppicableSectionsof10CFRPart50 6 50.10(el. S 50.21; 6 50.33(g) and (i); S 50.33a (a) through (d);

1 S 50.34(a)(3), (4), (5), (7), and (11); S 50.34(b)(1), (2), (4), (5), (6)(ii),

(iii), (iv), (vii), (8), (9); 5 50.34(f), (g); S E .34a, S 50.36a, 5 50.41,

S 50.43, S 50.44, S 50.46, S 50.47, S 50.48, S 50 49, S 50.54(a), (i), (i-1),

, (j), (k), (1), (m), (c) (q), (r), (s), (t); (u), (w), (y), (z), (bb);

) S 50.55(e)(1); S 50.55(f); S 50.55a; 5 50.57(c). S 50.60; S 50.61; S 50.62; ,

! 5 50.64; S 50.70(b)(2); 5 50,71(e); S 50.72; and S 50.73.

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

the subject of emergency planning for production and/or utilization facilities

! Although these sections and the appendix do not specifically state tnat they l apply only to nuclear reactors or nuclear fuel reprocessing plants, neverthe-less, it is clear from a reading o' the requirements contained therein that i they are intended to apply to facilities in which radioactive materials are contained, which are in and of themselves a potential threat to the health ar.d i j safety of the public.  ;

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l As has been discussed above, the centrifuge machines which AIChemlE intends ta '

use are contaminated with uranium through their previous use. However, as dis- i cussed later in this report, the uranium is fixed tightly to the machines and piping and is not available for dispersal. Therefore, there is no radiological  ;

health and safety threat to the public.

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

f rom the requirements of Sections 50.34(a)10, 50.34(b)(6)(v), and Appendh E to 10 CFR Part 50 on August 17, 1938. A copy of the request for exemption is shown in Appendix B. The Director of the Division of Industrial and Medical i

Nuclear Safety intends to grant the exemption shcwn in Appendix C to this report prior to issuance of the construction permit. The exemption will be  !

incorperated in the cen;;ructicn perri' l

C. Sections Applicable But Not Requiring Action '

In a few instances, a particular section of 10 CFR Part 50 applies to AlchemlE, but as a practical matter, does not require any action for the reasons discussed in the paragraphs below.

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

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

and components, if any, which require research and development to confirm the I adequ6cy of design, and then 3 program conducted to resolve any safety ques-  ;

tions and at what time. Since no research and development has been proposed by the applicant, nor appears necessary, to confirm adecuacy of design, Sec-tion 50.34(a)(8) reqeires no action. i

2. Section 50.36 - Technical Specifications Although an applicant would be expected to propose technical specifications for applications for nuclear reactors or for reprocessing plants, under the narrow  !

scope of this proceeding the only review area to which technical specif4'u ions 5

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would apply is that of safeguards, However, all safeguards requirements have been adequately acdressed by the applicant and necessary license conditions will be imposed. Accordingly, additional requiremento in the form of technical s,necifications, 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 f nuclear material or source material to be utilized. Sinct all of the special

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

4 piping (see Section I','.A.1. of this report), none is available for a useful t purpose and, therefore, no proportionate purpose can be served.

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1 III. BRIEF SITE DESCRIPTION The applicant's proposed site is located just off of Tennessee State Highway 61,  !

about one mile east of the Town of Oliver Springs and 5 miles west of Oak Ridge.  :

1 It is planned to be a part of an industrial park sponsored by the town. The

site is currently pasture land and is not yet developed. The site is in Poolar  ;

f Creek Valley through which the west fork of Poplar Creek flows. The valley lies between the Black Oak Ridge to the east and Walden Ridge to the west.

Further details on the site are available in the applicant's safety analysis [

j report and environ-ental report and, therefore, are not repeated here.

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IV. SAFETY ANALYSIS A. Radiation Protection

1. Contamination of Centrifuge Machines with Uranium i

Since many of the centrifuge machines proposed for use at Oliver Springs have i been tested using uranium hexafluroide, a thin film of contamination has been left in each machine, primarily in the rotor. Considering the nature of the machines, enrichment in the uranium-235 isotope varies somewhat from 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 ba about 0.07 micreat thick.

The deposited material is uranyl fluoride, UO 22 F , a reaction product formed when small amounts of moisture remaining in the low vacuum system react with  !

the uranium hexafluoride. At its test facility at the Centrifuge Plant Demonstration Facility using identical centrifuge machines, the Department of Energy enriched stable isotopes in a manner similar to that proposed by the applicant and determined that the uranium contamination is sufficiently fixed j that it did not carry over with either product or tails. The applicant will continue to sample and analyze both product and tails to determine if any uranium is present.

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In Section 6.0 of the Safety Analysis Report, the applicant has conservatively i j assumed the occurrence of an accident which releases a fraction of the uranium  ;

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 staf f has independently performed similar calcula-  !

tions with the same result. We conclude that the uranium fixed to the centri-fuge machines cannot affect worker or the public health and safety under any operational or accident conditions.

2. Enrichment of Naturally Occurring Radioisotopes i

j The process preposed is termed the enrichment of stable isotopes. Among the potential feed materials are about 15 chemical elements for which the isotopic 8

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enrichment process will increase the proportion of ohe 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 cosmologists to be primordial, i.e., they were  ;

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 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 abundance and their long half-live is that L they are so disperse in the environment and in our usual surroundings that they  :

, are normally cf nc concern with regard to radiological wfety. I 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.

To illustrate the insignificance of such quantities of radioactivity, an arbitrary threshold quantity of 0.1 microcurie is selected for comparison j purposes. The threshold is arbitrary because the Commission does not regulate naturally occurring radioisotopes and does not list these in its regulations. .

3 However, this threshald quantity is the smallest exempt quantity of a byproduct j radionuclide listed in Schedule B of 10 CFR S 30.71. As stated in 10 CFR t

S 30.18, Exempt Quantities, "any person is exempt from the requirements for a '

license" from the Federal government if they possess less than the' quantities listed in Schedule B. The Table shows that only such radionuclides for which  !

i the possible yearly inventory at the centrifuge facility is greater than l t

0.1 microcurie are zinc-64, zinc-70, tellurium-123 and platinum-190. As

[ another comparison of the magnitude of these quantities, the average adult

human contains about 0.1 microcurie of potassium-40 and about 0.4 microcurie j of carbon-14.

1 To illustrate the radiological insignificance of possible enrichment of the nuclides, the applicant, in a letter dated June 9, 1988, addressed the example l

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TABLE 1 f NATURALLY OCCURRING RADI0IS0 TOPES WHICH MAY BE ENRICHED Possible Plant Isotope Half-Life Abundance Inventory (Yearly) ,

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

Vanadium-50 6 x 1015 0.25 .001 1.2 x 10 6 Cadmium-113 1.3 x 1085 12.26 5.1 1.2 x 10 2 Cadmium-116 >1017 7.5B 5.1 <1.6 x 10 10 4 4

Indium-115 6 x 1014 95.77 .001 5.2 x 10 8 Tellurium-123 1.2 x 1013 0.87 2.8 6.8 x 10 1 Tellurium-130 8 x 102o 34.49 2.8 9.5 x 10 9 Tantalum-180 1012 0.0123 .001 2.0 x 10 3 Rhenium-187 4.3 v 10 01 62.93 .001 4.4 x 10 2 Germanium-76 >2 x 101s 7.67 5.7 <1.3 x 10 3 i Holybdenum-92 >4 x 101a 15.86 70 6.8 x 10 5 t Holybdenum-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**

Platinum-192 1015 0.78

• 1.4 x 10 4**

Platinum-198 *

>1015 7.19 <1.8 x 10 4**

Antimony-123 >1.3 x 1016 42.75 .001 <2.2 x 10 7 Selenium-82 >1017 9.19 .001 <4.4 x 10 5 i

Tin-124 >2 x 101' 5.98 .018 <2.6 x 10 7

] Tungsten-180 >1.1 x 1C15 0.335 .004 <?.2 x 10 6 l Tungsten-182 >2 x 10l? 26.4 .004 <3.9 x 10 8 ,

) Tungsten-183 >1.1 x 1017 14.4 .004 <7.1 x 10.s

) Zinc-64 >8 x 1015 48.49 1000 <7.0 x 10 1

. Zinc-70 >1015 0.62 1000 <5.11 "Quantity processed not shown, but would be similar to other noble metals i.e., less than 0.1 kg.

• • Activity in 0.1 kg.

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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 microrem 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 the uniformly dispersed contents of the cylinder would be about 0.3 millirem.

It was also estimated that tre bone surface dose to a person standing outside 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 an event would amount to 0.0035 microrem.

These estimated doses and the tabulated activities of the radioisotopes clearly show that the radiological rirk they represent is negligible in comparison to the normal backgenond radiation dnca rata of approviestely 106 millirer per year to a person (disregarding radon and daughters in inhaled air).

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 l

of about 5730 years, and in fos:il fuels such as petroleum products, it has

decayed to much smaller specific activities. AIChemlE has stated that there is no plan to enrich elemental carbon, but it is nevertheless of interest because

it is a constituent of some compounds which can be used for processing other

! elements, e.g., in dimethylzine to enrich zinc isotopes. In a letter of July l 20, 1988, the applicant estimates that 4 kg of dimethylzinc containing C-14 at  ;

5 pCi per gram carbon and enriched to 100 percent would as a result contain  !

0.005 microcurie C-14. Two other factors make this appear very conservatively large; one is that the carbon in the dimethylzinc will be derived from 1

petroleum, fhe other is that the different isotopes of carbon will be randomly distributed with regard to the different isotopes of zinc, for er mrie, 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 comprehensive list of chemical compounds which can be used for isotope enrichment in these centrifuge machines. For these radionuclides, it is found that enrichment in this facility presents no radiological hazard, either to the 11 f

workers in the plant, or to the public. It is recognized that AlChemIE might, in the f uture, consider other chemical compounds for feed, which could result in enrichment of naturally occurring radionuclides other than those addressed above. AlChemIE recognizes that the State of Tennessee has jurisdiction with regard to radiological protection from naturally occurrir:q radionuclides, and 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 i

The experience that the Department of Energy has had with the centrifuge machines in theli te> Liny progr am nas shown tnat f ailures are inf requent.

1 AlChemlE's experience should be similar. Nevertheless, occasionally t. machine will .il, informally described as "crashing." A rotor is unuseable when it j has "crashed" and must be replaced.

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The disposal of the destroyed rotor and/or other components involved in the I f ailure is complicated by at least two factors, viz. , (1) the contamination of j l the components with uranium, and (2) the need to protect the classified informa-  !

tion aspects of the components from public disclosure. The applicant has I

,! executed an agreement with the Department of Energy to receive the failed com-

.) ponents for disposal. iiie Department maintains a disposal area for S. a pur-1 poses. A copy of the Department's letter to AIChem!E on this topic is included as Appendix 0 to this report. There are no other radioactive wastes requiring

.; disposal from AlChemIE operations. )

l The staff concludes that appropriate arrangements are present for the disposal  !

J of all contaminated waste.

C. Decommissioning f 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 related to the dismantling of the facility upon decommissioning will be con-

) sistent with the approach described in the section above on waste disposal,

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t i.e., the transfer of all contaminated, classified components to the Depart-ment of Cnergy. The AlChemIE agreement with the Department of Energy, as j described above, encorepasses all machines, including those extant at the time i of decommissioning.

The staff concis: des that the contaminated machines will be adequately disposed of upon decommissioning.

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, V. SAFEGUARDS PROVISIONS i

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 license. Under the provi- l sions 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 account- i ing program for special nuclear material is withheld fron, public disclosure. '

4 Therefore, specific information related to the applicant's safeguards provisions are not discussed in this report. This information has, however, been  !

provided to the Atomic Safety and Licensing Board. l With respect to the applicant's technical qualifications to perfonn the safe- I guards functions as required by the security plan described above, many of i those functions may be performed without any previous specialized training or  :

, experience except for that related directly to the safeguards provisions. The I construction permit will include a condition incorporating the S:curity Plan l and a condition that no activities will be undertaken until such time as the

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NRC regional inspectors have been assured that the safeguards functions are completely understood, all appropriate training has been accomplished, and i there is adequate staffing to accomplish the objectives. On this basis, the i staff concludes that the applicant in technically qualified.

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1 VI. PROTECTION OF CLASSIFIED INFORMATION Information pertaining to centrifuge machines is to be controlled in accordance with Chapter 12 of the Momic Energy Act and Executive Orders 10865 and 12356.

Procedures for granting acces to individual licensee personnel are set forth in the Commission's regulations in 10 CFR Part 25, "Access Authorization for l Licensee Personnel." Procedures for obtaining approval for facilities licen- l sees' use for safeguarding classified information (Secret, Confidential National [

Security Information, and Restricted Data), received or developed in conjunction with licensed activities, are set forth in the Commission's regulations in 10 CFR Part 95. "Security f acility Approval and Safeguarding of National Secu- '

rity Information and Restricted Data." t l l I

The applicant has submitted information in the Security Plan for Alchem!E l

Facility-2 Oliver Springs pursuant to 10 CFR Part 95. Because of the nature of  ;

the information the NRC staf f considers the Security Plan to be proprietary l information within the meaning of 10 CFR 2.790(a)(1)(i). Therefore, detailed [

information pertaining to the methods and procedures used by the applicant to r

! meet the requirements of 10 CFR Part 95 cannot be discussed in this report.

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A copy of the Security Plan will be provided to the Atomic Safety and Licensing I Board upon completion of the staff's review. '.

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VII. ADVISORY COMMITTEE ON REACTOR SAFEGUARDS 1

In accordance 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 meeting, the 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 l planned safeguards and security controls. This letter is included here as Appendix E, 1

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l Vill. FINANCIAL INFORMATION

.l Although the staff has performed a substantih' portion of the financial review, other agency commitments have prevented the completion of the review i

1 and evaluation. The staff's final evaluation and conclusion with respect to ,

financial information will be presented in a supplement to this safety I evaluation report upon completion of the staff's review.

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IX. CONCLUSIONS

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

1. The applicant has described the proposed design of the AlchemIE Facility-2 j Oliver Springs, including the principal archt*.ectural and engineering criteria ft.r 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 construct and ultimately operate l j the prepc.ed f%;1.t, (AICherIE Facility-2 Olher Springs) in such 6 *ay l

] as to assure adequate protection of the common defense and security.

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

of its Finding of No Significant lepact as based on the staff's Environ-mental Assessment; therefore, upon the required findings of financial

]' qualification and with regard to provisions for security of information, the construction permit for the AlChemIE f acility-2 Oliver Springs should l be issued as proposed, r

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j i l  % staf f's conclusions as to (1) whether or not Applicant is financially i l qualified to construct and ultimately operate the proposed facility (A1ChemIE [

Facility-2 Oliver Springs) in such a way as to assure adequate protection of

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the comon defense and security and (2) whether the issuance of a construc-tion permit authorizing the construction of the AlChemIE Facility-2 Oliver 3 Springs will not be inimical to the common defense and security, will be set  ;

forth in a supplement to this SER. '

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APPENDIX A [

t FEDERAL REGISTER NOTICES ,

AND NRC STAFF PAPER TO CO MISSION l

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~,,,,,c FDLICY ISSUE March 23, 1988 SECY-08-88 For: The Corraissioners From: Victor Stello, Jr.,

Executive Director for Operatinns .

Subject:

FECERAL REGISTER h0TICE OF OPPCRTUhlTY FOR HEARING Oh i ALCHEMIE KPE TCATIONS

Purpose:

To obtain Comission approval fo? issuance of a notice of ,

opportunity for hearing that differs from the standard Part 40 l notice.  !

Background:

The Department of Energy intends to sell its uranium enrichment centrifuge machines to the All Chemical Isotope Enrichrent Company (AlChem!E). The machines will not be used to enrich uranium. They will be used to enrich stable (non-radioactive) isotopes.

l Alchem!E tabmitted two license applications on November 17, 1987, i

pursuant to 10 CFR Part 50. Two applications are necessary l

because :he machines are intended for use at two locations, viz., I the Centrifuge Plant Cemonstration Facility (CPDF) on the Federal reservation at Oak Ridge. Tennessee, and a new private facility to be built near Oliver Springs. Tennessee, i Since the CPDF at Oak Ridge is already constructed, but will l be modified, the applicant has requested both a construction pemit and operating license for that facility. The application for the Oliver Springs facility is for a constructicn pennit only.

Contact' A. Thomas Clark , Jr. , hMS5 492-C697 J

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t The Comissioners 2 Discussion: Even though the centrifuge e.achines will m t be used to enrich uranium, a production facility license is nevertheless required under the Corr.ission'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 i non-radioactive isotopes there is no radiological health and safety centern with respect to the cperation of the machires. ,

The only licensing issues of importance in connection with such a license are those associated with assuring adequate protection of comon defense and security (safeguards issues). Although sere of the machfres are slightly contaminated with uranium (actual figures are classified information), the safety implications of the quantities are negligible and would be adequately controlled by routine licenses under Parts 40 ana 70.  !

The Comissicn has instructed the staff, in connection W.r.

processes involving uranium hexafluoride, to consider both. the radiological and non-radiological hazards of licensed

! material is_ee "Staff Requirerents" memorandum, SECY-86-99, ,

l October 2 F. I986). In tt's case, however, the chemical hazards, if any, are unreiated to materials licensed under the Atomic Energy Act. Such hazards would be subject to i regulation by other agencies h. Environmental Protection i Agency under the Resources Conservation and Recovery Act, and j

the Toxic Substances Control Act). Therefore, in this instance, a the staff believes that the Coassission should not exercise any -

I authority it ray have over chemical hazards that may arise from '

eperation of the machires to produce non-radioactive materials. '

4 Accordingly, the staff proposes that hotices of Hearings be issued which are specifically tetiorea tu assure that the review

• is limited to issues reldting to comon defense and security and

to required Naticnal Environr. ental Policy 'Act fincings. Special notices are provided for in 10 CFR 4.10a(b). Since the Oak Ridge

facility will use existing r4 chines in their present locaticns j with only minor modifications, the staff preposes to publish a single notice on both the construction permit and operating Itcense, i

I a

i I L The Consnissioners 3 i

Coordination: The Office of General Counsel has reviewed the proposed 7 n:tice and has no legal objection, t Reconenendation: The Cessnission approve publication of the enclosed Federal ,

Register notices. ,

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horStello,d[r ecutive Direct j for Operations  ;

Enc!osures

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1. > #eral Register Notice i for CPDF l

2. federal Register Notice i

, for Oliver Springs i I Commissioners' co= ents or consent should be provided directly to the Office of the Secretary by c.o.b. Thursday, April 14, 1988. l Commission Staff Office comments, if a.ny, should be submitted i to the Commissioners ti: T Tuesday, April 5, 1988, with an infor- - l mation copy to the Office of the Seci.etary. If the paper is

, of such a nature that it requires ad.ditional time for analytical  !

i review and comment, the Commissioners and the Secretariat should j be apprised of when corments may be expected, j i

DISTRIBUTION:

l Commissioners

! OGC (H Street) r j 01 i OIA i 1 GPA (

REGIONAL OFFICES i EDO j

. OGC (WF)  !

ACRS ,

ASLBP ASLAP l SECY ,

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Federal ReWster / Vol 53. No. 82 / Tharsdae. Apru 28.148 / Notices 15315 and prional a.Lm e.on ccacemma NUCl. EAR REGULATORY Pnot to a decisten on the requested

,-iu d.es os,oce d . 4 i* e :re r"'. COMM:5510N cens ruct on permt. the Cowsmn it.se w c s c e . a r. e.. w r.:t4; c.J wJ hase rnade the f.ndep req.ged b) ist of 5 t' 5 C 11 tA). Coumment in the 100 cast No. 50-40dl the Atomac Ene gy Act of 1954 ae S *" Ad amended (the Act) and the Receipt of Apptiostlovi for .

'""' ' ' ' "8 ' ' "

M sewua uh Construction Poemit. Aveastwi,ty of co n nee um e ,.r M <** Applicant's Environmental Report. Coastruction Permit Arra 21 1*4 Considersoon of leauence of

) ' Constructlen Perwt and Noece of Purswant to the Atomic Eners) Act of 1954 as amended (the Act). and the l l ItR tu aA-9.a: Fi aJ 4-:%e a es aml Opportunny fee Hearnns AA M regulat:ons m title 10. Code of Federal we cree seem isotope Entschmerit.Inc, Alchem6e Replatons. Part M.

• Domesh:

Facterty.2 06tver Spriego Leersmg of Predact on and t't.Mation Nor ice is berety gn en that the U S Facthties. Part 31.-Leens:rs and i Divit6on Advisocy Panel for Nuein. Replatery Commission (the Reguatory Pol.cy and Precedates for NetworHng and Communecations Comminston) has rectn ed by letter. Emrontnental Protertmn." and F art 1 Research and Infrastructure. Weetin9 derd Naember 1? 198?. an *Rufes of Practice for De neette appLc at6on. Faiuronmental Report, and bcenses Pro:ndmss." notice is hereby i Safet) Analysis Report fro n A!! garn that a beannt wid be held befo*e '

Tb Natmnal Science Fondatic, en Atosc Safety and Lcenos Bari annances the following meeting Cremical lsotope U.nc*.inent. !nc,

( AlChemfE) for a construenco permit to to consider the apphcation fded under

".r e this.on Adussey p r elfor the Act by AACherelE(the a,rpheant) for

%i.ortes era comm ces pneanh use centnfusal reachmes to ennch non.

• e: at A?C'.c.? !E a ceaemnon termit fer A Chi 1E

.w i n.orm.r, Faciht).2 Obser Sprmgs (the faciht>1, Ops su Ten Mas nehtoao a m.

taL W e locate FaciLt).2 .5;':det Obver Spnngs.

w hich will be located m Oln er Srnngs.

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• v r m W, :4 hem a m.3m r m T<nnesin The noreradioaceae

's-tepes wo.td te wd in tredicat Tenneu n rar Mo :41% w w> s s The heanns =d! be condur.ted b) an se la %nnat hnte Founde.on tes) industnal and etstrenmental and enerfy consers ation purposes Atomic Safety and Ucenseg Soard G 5trut Nw (Board). wh:ch has t een des'gnated by rge c/ n,erry The centnfuse machines AIChem!E the Chairman of the Atorni: 54fe'y and intends to use fer ennehms stab e oIo notopes will be obtatned under an licensms Board Panet .%t.ce as to the t w> n:hto ao a et.s si p m agreement with the United States membership of the Board w.ll be w> :i%t: + r m -3 o 5

• Depan.?rnt cf F.ners) The mach.nes tubbshed m the Federal Register at a i w ere ong'.nslly desaned and later date, W ied constructed for the Department, to Pursuant to 10 CFR 2 *ft3. an Atemic un :4 ham a m .t:m r m ennAr 3 trann.m Ahh0 gh A!ChcME Safety and beensirs Appea! Emed wdi recrwr ren. De 5 ep en s mat mtends only to enrich stable isotcres esercise the authenty and the reuew S %eal hnce Fm.ndown f*one ( a:) fs,nction which woald otherwue be mr p. and wit! not ennch uramum. the Atomic A. Me o# Wrer To per .Je adwe and Energy Act of 1954. as amendel arid the esercised and perfortned by the ,

re.ommendatione contemirs N5F s.pport of Comrt "on's regulat ens.10 CFR Part Commission. Notice as to the M proWJe that equipment Capable t.8 mernbtrship of the Appeal Ebard wdi be remotee and commutes tourch pubhshd m the Federal Registee at a en d irthstructce ennchtr3 utt,rdam to a production Ar Ja The sets.oes m !! fe.cus on facdtty requding a beense from the later date.

w W.L mano.w.ett ruecA g:c.r r e Cem.aussico Sact a l cense wos!d After the Commissinn's staff hu i

uJ pohc) naves f use mta incNde a gosern possession of the centnhge perfor*r.ed a safety esaluation of the l

t a en of eneri ut~ns and tWet inachmes but not the enriched stable appLcatten and an enurortmental l

s nc+ t.es isotopes prodated. reuew. the Cornnossion win cons. der Eks hTe rme= and eu .oe ruevth The appbcant han I;ted. parsuant to traking afftrTnatne findags on Pe ns 1 p p.a.ts n peri ot the se'e,t.sn prouse he the National Enutorunestal Pobey Act and I a negans e fmdmg e a item 3. and

• =** of 199 (NEPA) and the regulations of an afhrtnata e findms on item 4 UsewTo rsu.is wenJs eJ s;;m ues the Ccemasion 6n 10 CFR P.rt St. an smtfied telew. as a bar e f y t'e  ;

• rein rat enJ 6a help rmude uno atJ enurocut.,n.at report The report. which issuance of a construction prm.t to the i.meedemt e conarnes e. rpm for d.sc.sses enutenmental considerations a;phcant. ,

i s iw.h in Newra.ns and Cet (.w s related to the prcposed operation of the """ "*I ^ T '

I enne d, and Idra cruct ure factLty,la being enade as adable at the I

h % CN rr Th rmpe e.'s 5<

Ad d W.as Asne s Cor+masion's Pubhc Document Room at reuemeJ 6rJ.Je 6chsc.a vf a pc; nov) 17U H Sweet. .NW . Wa shAngtorL DC. 1. Whether m accordance wuh the '

we mtf det el mat re t.O.J. .s inM al The NRC wdl complete an prousions of to CR 5034.the apphcant irbrmoen finaa.41 Jc4 na o u.c enutortmental es alustaart in Hs ducnbed the preposed des.gn of the er J serserat irLrm.t . $ or :en r 8 accordance m:th 10 CR Part St. to f ac.l.') meluding bat not hmeed to 'he

.niuJa:s unau.t.j ma t'e r epu:* determine if the r-teparation of an prmetpal architecNtal and er tneene s  :

Mese metes are mtbn euennor.s 4 e 3 e ermronmental trepact staterment is entena for the design. and has ident.fied  !

.f 1 e Ccie rent m t%,5.r e.r, Lt warranted or tf an ern.rcrimental tb malcr fenNtes or comp;mevs i net.ua mau.r. assessment and Fmdag oLNo mcorporated therein tc assure adequate  ;

S ga.if. cant Impact are appropriate This pretection of the common defense and cm < , , m g e w uv . .

seCbr.ty scho l w'll be the

• Clect of a 3 R tu aA414) FJeJ 6.;%s e o a.-; s bsequer t notse .n the Federal 2 Whether the a;;hcant as tedmcah i eea coce no es Regater. and f.nanciativ quabf.ed to const .:t the l l

l j 15314 Federal Resister / Vol. 53. No. 82 / Thesday. Apnl 23. 1988 / Not;cos proposed facdity m such a wa) as to As reqared by to CTR 2 714. a ass re adeda'e prved. c ;f e e making a hratted apparance raay make '

. pet.t.cn fcr !e e s e N intersene shall set an o al at wr:tten stater =ent of posit on i common defense erd secunty. furth with particulant) the interest of on the issues A limited appearance may I

3 Whethr the assaance of a permit the petitioner in the proceedag, and I be raade at any session of the heanns er autNntte construchon of tu facity how that interest may be affected by the at an) ;tehearies conference. s.b ect to i

m dl be mascal to the commun defense results of the preceedmg The pention such hauts and conditions as may be and suuniy s* ould specif caUy esp lam the reasons tr pesed by the Beard Persons des.r.. g lesue Punuant to National why intenentJon should be permitted to make a limited appearance are with particular reference to the requested to inform the Secreta y of the

! Enstroninental Policy Art (NEFAl foMowing factors (1)The nature of the l 4 Whether, m accordance mith the petiuoner's nght under the Act to be Commission within 60 da)e of the date of pubhcanon of this Notice.

l requirement of in Cf M Part St. the made a party to the proceedmg. (:l the These permitted to intenene become >

construction permit should be is sued as nature and estent of the petitso let a proposed parties to the proceedmp subject to any l poperty, financial or other interest m hrnitations m the order grantmg lease to i

If this proceedmg is not a contested the proceedmg. and (3) the possible inten ene, and have the opportunity to proceeding as def ned by to CFR 2 4f n). effect of any order which may be present evidence and cross-esamire the Ib4rd wdi detersne the IWlonms. entered in trie proccedmg on the witnesen.

without conducting a de inos=o es atuauon penuorier's laterest. The pennon should Non. timely (dmit of petinens for of the appl: cation p) W tether th, also ideattify the s;ectf.c aspect (s) of the apphcation and the record of th, len e to inten ene. amended pt.t.cns.

subject matter of the proceedmg as to proceedmg contain suff>cient which petitioner w tshes to intenene- supplemental pyuuons, s ot requnts mformation and whether the and shall spectfy whether such aspect ' for heannt wtu not be entertained ,

Cwmuse un it.ir in.. vi U e rela'en to the cwnett.ctiwn permt or to absent a determmatmn b3the Commiss.on, the presiding officer or the  ;

appheshon has been adequate to the opyraun Itcense or to both. Any Atomic Safety and ucensms Board that support the proposed fmdmts to be pnon who n Med a pedue forI"" the ptitten and /cr request whodd be made by the Direct;r of tne Daa.cn cf to meers ene or w ho has been admitted as a party may amend the petition granted based upon a balanctng of the Industnal and Medical Nuclear Safety factors specified tn to CDt p14(a)(1)OF on tiems 1-3 abos e. and to support, without requestmg lesse of the Board.

msofar as the Commission's incensing up to fifteen (vl and 1.714l d).

• requrements t.nder the Act are pehunns co(15) de):

rJerence schedated before inthe thefirst A request for a heanes or a penhen r concerned, the issuance of the proceedmg. but such an amended for lease to mtenene shau be ided by petition must satisfy the specificity May 31.1988 with the Secretary of the construction permit proposed by the D.*ector of the Da aion of Indatti.1 and reprements desenbed abo"' Corrm:ssion. L*nited States N. clear Medical Nuclear Safety; and (2) w hether Regulatory Commission. Washington, Not later than fifteen (15) da): before the NEPA reuew the Commasert s staff ecial preheanne conference if one DC 20555. Attention: Docketmg and Seni:e Branch, er may be dehs tred to condacted has been adequate the s(d. or if not fifteen (15) is he , ,

da): before 11553 Rocks die Pde (One White Fitnt If this proceedmg becomes a ',h ' '" Pd ' 8 " i contested proceedmg wtth respect to ehed pn cee 3aImuun North) Rochvtue. MD. or to the

'h ' Comm siion s Pubhc Do ument Room, issues relating to the constructmn 3n,'Uf1[,*dE{I ' P' permit. the Board w til consider and [de a of 1717 H Street. NW., Washington. DC. by  !

mihally decide, as tenues tn this the content one which are sought to be the abou date. At t mes when petmons j proceeding items 1-4 abcse. as a basis g,,,seted in the matter, and the bases for are Ided dunna the last ten (101 da): of ,

ror determinmg whether a construction each contention set forth with the notice penod. it to re wested that the t i

permit should be assaed to the opphcant- unonaMe spoficity. Contenttees shall phnen prompdy so m orm the By May 31.19% the opphcant must be limited to matters within the scope of Commasin by a toMrn ukphee cau fJe an answer to this notice. p. s ant to the issues set forth in this notice. A to Wntun Unmn at NMW (in 7 to CR 2 705, and any person whose pehttoner who fade to fde such a M'ss un 16MN Tne % nuni [

supplement which satisfies these Union operat r should be gaen internt may be affected by this t prwndmg. and who wahes to requinments with respect to at least one Data ram idennfication Number 3?37 l contenuon will not be perm 2tted to and t e fouowing musage addressed to participate as a art) in the proceedmg pmeig,e n a puty. Richard F Cunnmgham. Director, l

mat fde a wntten ptihon for inn to Those permitted to intervene become i

mter ene Requests for a heanns and Disision ofladustnal and Medical l earties to the proceedms subject to any Nuclest Safety, Office of Nuclear penuens for leau to m'en ene shau be Matenal Safety and $4faguards ,!

hmitations m the order granting leas e to fded n accordance with the Washington. DC 20515 Petitioner's intenene, and hag e the oppoeturuty to i Commaston's Rides of Pracute for prucipate fuuy in the conduct of the name anj telephone numben da'e t

t j Denhc bcenstra Proceedmss" m to heanns. including the opportumty to petition was rne' led. p! ant name. and CFR part 211 a request for a hearms or present endence and cross-esarrune Pubhcahon date and page nutnber of the petit ion for trau to m'enene is fded by  !

witnesses. Federal Register notice A copy of the '

the abose date. the Cemmasion er an The Board wt11 set the time and place petthen should n!so be sent to t6e Office Atomic Safety and bcensm3 Board  ;

for any special preheanns conference, of the General Counsel U S Nuclear  ;

dnynated b) the Commisuon or by the preheanng conferences and endentiary Replatory Commission. Washingtort, Chairman of the Atomic Safety and j Fearms and the respectae nonces wdl DC 20555 and to Ste; hen A trurg Esq bcensms Board Panel wth rule en the be pubhshed tn the Federal Register. Rt t Daon Roat Lenoir City, p reasest and/or petit on. and the Any prm who does not wish or is Tennessee. J*r?t, attorney for the i Secretary or the des:gnated Atesc not qualfiel to become a prty to this appLcant M a and Lcensmg Scard wid iss.e a proceedmg may request permission to l for farther detai.s see th e a;phcation i

rme of heaned or an apprepria'e r iale a hmited appearance pursuant to erder for a coes'ruc- unit da'ed the prousions cf 10 CFR 2 rth A penen Nos e rter 1r

• and the .Sca .! s

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fedtral Rsgist:t / Vol 53. hu. 82 / Thatsday. Apit! 23. 1963 / Notices 15317 enuronmenul re; ort dated Ncsember 1. radioactae isctores would be und in The hurms will be ccnducted b) an tw. whith. along woh any me6 cal. Industnal and erntronmental Atomic Safety and ucensmg Board i

a~ead-ents or sup;!emen's threto ve and ererey consen ation purposes (Board), which will be des: grated by the i

i or w d1 Le a.a. lab e fur p.,bhc inspect.cn T he centnf;4e tr.ach. net A; Chem!E Chair nan of the Atorn.c safet) and at th Comm,suon~s P.bl.c Docurnent intends to use for ennching stable Ucensing Board Panel Notice as to the i Rsm trt? H 5treet. NW. W<ish rg'an isotopes will be cbta med under an memtership c' th Beard w dlbe i DC. betwe,r, he tc .rs of 7 45 a

• a nd avernent with the United States pbbshed m the Federal Register at a 415 p m on weekde>s As th) be: cme Department of Enern The machines later date.

as 4 lable a copy of the sde') were enginally desis ed and Pursuant to 10 CR :45 en Atemic euh.ation report by the Commasoon's constructed for the Departenent. to Safety and Licensir 3 Appeal Board w111 '

staff. the enuronmental auessment. the ennching urantum. Althot gh AIChem!E esercise the authonty and the restew propused constructwn permit. the intends ortly to enrich stable isotopes function which would otherwtse be '

transtn;ts of the prehe:nns and will not ennch uraniurn, the Atomic esercised and perfor .ed by the j conr erentes and et the hearire and Energy Act of1954 as amended. and the Commiss;on Notice as to the a oth er re'eunt docurnents. will a.so be Commission's regulabons.10 CR Part membership of the Appeal Board will be as ailable at the abose toutien Copse 5a poude that equipment capable of pubbshed m the Federal Register at a of the proposed construction permit may ennchms taantum to a production later date, t e rhtaine i when as aileNe h fewest f acihty requinns a hcense from the After the Commiss'en s s'aff has

to the Director. Diusion of industnal Commission. Such a 1. cense would performed a safet) en ah,atica ct tre and Medical Nuclear Safety t) S gorern possession of the centnfuge appbcation and an enurentren'el

'utleir Regu!ater) Commaun, rrathmes tut not the enriched stab'e reuew. the Comin.o.c n will cors. der i Washtrsion. DC 20S$5 Ccpies of the octopes produced- making affttmatneTmdess on tiems 1 Commission's staff safety es aluation De appbcant has f.!cd. pursuant to and 2 a negatne findme on Item 3 and rarart and enurner-entel anessment, the Nemonal Ennronmental Pohey Act n Chrmatm hnore en Ite n ( '

when a$ailable, me) be purchased at CII*s tNDA) and the rega.atwns of speched blow, as a bars for tu i

the Commission m 10 CR Part $1, en issuance of a construct:en permit to the current rates. from the National Tec hcical Infometmn Serut, erstronmental report Die report, w hich appheet Department of Commerce. $2&5 Pcrt 6scusses enurer. mental considerahons related to the proposed operation of the Construction Permit losues P,utsuant to Rept Road Spnnsfield. %rsmia 2:161 facihty,is bems made available at the the Atomic Enern Act of 1954.1s a me Mer>1and th.s ::nd Commtaston's Pubhc Document Room at Amended N 8 'h*E'

'"h 1. Whether. In accordance with the l For the Nxlear Pesulatu) Co'nm som

• ruvtsions of 10 CR 50 34 the apphcant l Leland C. Rouse ' # as desenbad the pmpeted des 1rn of the

'% 1' I.ric : .e 852 en sn a p 6 ,a9 l rda ce ith C Part St. to facthty meludmg but not 1.wted to the h ss moloM Med cc/ Lc!cor Svem a. g g

1. a sta ement s E""#'E "' ' "I*""8  !

e ementa entena fer the desan. er d has ident.f.ed p tbc mo9 Fad 6- Ma n $5 a-l warranted or if an enuronmental

ou=o cca nwe on,...nent and Fmding of No 'h ' *

• I * ' I' ' ' " ' ' " E " ' "' '

incorp rated therem to assure adequate j Samificant Impact are appropnate This " ' d ' '" "

! tooctet sea go.4o3g action wtil be the sub iect of a*

subsequent tiotice in the Federal rtU

2. Whether the appbcant is techniully Receipt of Apphcation for Register. and financially goahf.ed to mod.fy the Construct 6on Permit, Receipt of Pnor to a decision on the requested ,

'"ns facihty in such a way as to Appucation for Facihty Operating c onstruction perrnit. the Commission suure adequate pnhon of W wt!! hane made the find ras requ red by Lgente, Avadability of Appbcant s ccmmen defense and secur tb E nv6tomnental Repor*,, Consideration the Atomic Enern Act of 1954. as 3 hhether theissuance rf a l of issuance of Ccmstruction Permat amended (the Artl and the constn.ction perst 4.e.2mg tr.e and Facility Operating License and Cornmission's rules and regulahons Nohce of Opportunety for Hearmg. All Chem *c al lootope Eneschme nt, Inc, Construction Portrut 'lt th co a o I se and l Pursaant to the Atomic E.nern Act of secunty.

l Centnfuge Plant Demonstration 174 as a r-rdel phe Act) and the r,em, regulations m Title 10. Code cf f ederal inaPunmtto NPM 4 N m e a he eb) gnen th.t the U S r Reg alatwcs. Part Sa ' Dernethe 4 Whether, m accordave w* the

'. .t h 4r k e gula's r) Ct mrminie n Uhe bcensing af Productwn and l'tihtat;cn r@rements of 10 CFR Pstt P. + e Cennnsmnl has rnen ed by lette r. FaciLhes " Part St. "Lice noms and construction permit ard epereur; it ced Na err her 1?,1W in Regulatory Pohey and Prxedates for beente should be inued as prepnsed ,

,  !! th,s proceedmg is rut a 0 -'-s'e d  !

q;, catu n f f un r er t P Rr pet e ! Inurenmental hotechon? and Pct a N.'ety Anats s.s Report fro n Mt

• Rules of Prachce for Domestic proceedmg. as defired t310 CFR 2 4,nk Gewc alI. A pc i enthme-t it Ltcer323 Prc<eed.ep not.ce is hereby the Board will deterne tre hihat. l ga rn that a heaa.ng will te held before withett cend.ct?g a ^ - - J es .L4Lon l t u 5. .111 fer a t s ve.e U m.t cf the typhcatc9 til W '*9#r t'e and face operat eg ho nse to de an Atove Safety and bcensmg Board.  !

(eatnf aal r ack res to enrub ron- to unoder the apphcahon f.!ed under app'..ceen and the ter rd e I t'e L r.f' m e w tiiett%es" a t'e At by NChe-lE Ute arrtcanti fer p"ceedy ec 'a n s." r ' .

3 Centf atal rim thrs nitrat. n )aat) a constn;chon pe~mt fer AICtemlE mfer rat:en a .d whe'rer **e 1 D VC' ?!M F i h 1 CPDF) l u'-j at Fmu)4 CPDF ltre f aciht31 wh:ch w11 Cc~ rss:en stdf's reww c' W l

A K,1a feA:i ,n. M t ; a e .it C.a O ak R.de Fe ce t al s p' utt ee 6 a ' * *

• a l- . ' ' i O .a K S 1, - c. I' . :r tee n aun in O.a R.J;e. Te nmee 6.ppr' the pr:;c se . f ' m ' 9 d

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m is Federal Reidster / Vcl. 53 No. 82 / lhw.hy. Aotil 28, 1988 / Notices m ade by the U. rector of the D.suion of notge of heants et an a;propnate make a limited appearance pursuant to industr al end Medical Lc! ear Safety order. the prosisions of to CFR U15. A person on l' ems 1 3 above. and to surport. As required by 10 CFR 2 ?14. e r ak:ne a hanted appearssee may raake ir scf ar s t% Cum:mssion s hcensing pet An for tene to intersene shall set an oral or wntten' statement of position requirements under the Act are forth with particulanty the interest of on the issues. A limited appearante may tonierred. the issuance of tre the pennoner in the pror.eedies. and be made at any session el the hearing er e vr.u a r *'Ymt Fr"pued ty the h >w that in'e e st may be at'ected by the at any preheanns conference. subject to D rn er uf en thnon of IrAstnal and ratults of the prxeedin.g The petinott sc.h hmets and c<nditions / e inay be

%.) br!ur %fe's, and 12l whetFer sha'M s;ecdas!!y esplain the teesons in pou d by the Board. Per., ens desiring the MTA rnn it.e Cornminwn s staff w hy intenention should be permitted to make a l'mited appearance are e endu.ted has been aJernate. with particular reference to the requested to irform the Secretary of the if ihls proce Jeg bucmes a fulloweg factors (1)The nature of the pehuoner's r:sht 6ttJet the Act to b* Commnsinn within M days of the data rows'ed proceedits wnh re spect to cf pubhcat on cIthis nobre.

im.es rel stirs to the cormrsiion made a party to the proceeding (2) the g ,g g prmit, ths IWed ndi c.onsider and nature and estent of the pet; honer e g

l invull) decide. as tasa s in the pm pe ny, financial or o6n intnest in an M N poceeding, subgect to any pncreders items 1-4 abe, as a la sis th e prut teding and (3) the possible hmitahans in the order grantmg ime to

'fI'C' Of *n) w h ch i may be entered in intenene, and hat e the opportunity to ter determ:n.9 whether a construe non armit should be issued to the appcant. the proceed.rg on the pehtioner e resent endence and cross esstr ne interest. The pennon should also -

Operating Ucense identf) the ornn opct(sl uf th, %n.tenely f. lings of peters far This apshubon is mmplete enou6h to subject matter of the proceeding as to lease to iritenene, amended peutons, ,!

t perm. esatuation of the safety and whth pentioner wahes to intenene, sur lemental petitions, and/or requests endronmen'alimpact of t'e eterst an and sha!! specify whether such aspect for .vanns will not be entertained osed. re.4tes to tne construcu n permit of to stasent a ceterminehon by the l of the faabi)

Therefore, uponincomplencn the enannerof t pufe the operahng hcense or to both. Any Comm'ssion, the presidtng officer or the uf first.on of the fan!n m Oak Ra.!se peson who ha s f. led a pehrion for lease Atomic Sdfety and Licensing Board that t ennessee. in comphance with the terms to intenene or who has been ad. Tutted the petvion er.d/or repest should be and conditions of the constniction as a party may amend the etition ranted based upon a palagttryg of the prmit and the appheahnn. as amended, widout nquoung lease e the Board, acton opnif ed in to CFR U14(a)(1)(i)-

dnd in Ibe absence d good f ause to the  ! I t untrat), the Comminion willissue to prehe4nr g conference schedi. led in the A request for a heanna or a petition the apphcant, without additional pnot p ceeding. but such an amended for leas e to inten ene shall be fded by n vice, a clan 103 fac:hty laense phhon must sausfy se spectficity Af ay 31.1988 with the Secretar) of the

.e.ona ng operation of the faciht). regnrements desenbed abose.

Cornmission. United States Lclear Not later than fifteen (15) dap before Rc gulatory Commission. Washington, Operating Ucensa Issue h t e special preheanrg conferent.e. if one DC 20555. Attenhan Duchehas ar.d Whether in accordance with to CIR is held, or,if not. fifteen (15) da)s before 5,r ice Branch. or may be delnered to M M. an operahng hcense should be the first preheanns conference

,, , g 11555 Rocks die Pike (One White Fl!nt scheduled in the receeding. a pehuoner North). Rockvdle. MD. or to the l ;fihn pweedtes te omes a than fde e supplement to the pehhon to Commission's Pubhc Document Roc {

contested croceeding with respect to intenm which must include a hat d tr17 H Street. NW, Washington DC b) 3 osses rel4tma to the opratir.g hcense the contenhm wbch an meM to be the abobe date At trmes when petitions tFe r,oard wdi make f.ndings of fact arid hugated in se mann. and be bans far

' are fded dunna the last ten (10) day s of

<m tysons oflaw on 'how m.tters n7b e the nohee pened,it to requested that the l 9.t ne d in to Li R O Na.

ta t c cna shd phhonn UWF m inbrm W th \19 3L Pen & the appi. cant trust be hanted to matters withtn the scope of Cora.maston by a toll free tele; hone cal

' the issues ut f'rth n this notice. A '

' ha an answer to tris nonce, purs44nt ta pe%oner w ho f.ds to Me such a ' ' " I" "" "I I'M I'"

to CITt 2 *M and .r> person whose supp ement wh.ch satisfies these htissoun 1-&o-542-4?00). The Western i

in'e.est y bc effnieJ b this requirements with respect to at least one Ur. ion cperate should be gnen

r % c. W ind w ho w a 6.cato contenhen wdi not be perwtted to Datae*am Idenhficat;on Lmber 3*37 i

,- + < : m n a p e, - t*e prx eed r8 and re fhwing message 4 3 dressed ta prucpte u a any

, e - v 4 m uten pwn fer lene t- Those permmed ta tnten ene become Rah.rd E Cunniraham. DJe(tar.

.t n. ne Regeests fat a heanns and parties to the peserdira swbtect to an) Dmitan of indastnal and Medical g.'n n. f r L ne to inten n., sha:1 b* limitahens in the order panting lene to Lclear Safety. Office of Lclear hh!in m. tJance w th de intersene, arsd hoe the opportunity to ht.iterial Safet) and Salegvards.

Coe..swn s ' Rutes of Prachce fue participate f 4y in the condact of the Wasbatom DC E555 Petittuner s IMr .' 1.. < na g Pr # s ed.r g s .n 10 he anno tnchat.ng the opportunity ta nee and telepone nurnbc. date CIR 1% t2 !!4re et t !or a hear.ng or present eudence and cross esamine petitan w as rnaded. plant name and 4

p t? nn f 3r lc n e 10.nten ere is fded by witnesses N%cdhon de'e and page nutter d the t m .be de t*. C. em.nwn or an 1he Bear ' w.11 set the t me and plate federal Regater stae. A ecp> of the i t

i c %!et) anJ Lmens rd 00ard fer an> spec, l prehears g coMerence, pntion sk.u .bo te sent to the cfhce i NwvJ t3 the Ccmt.as on er by the p the4nrg cot.ferences and estdentiar) d the GeneralCnnsel U S Ltlear [

! CN r n J % A.c c Nfg and bearm arj ee respctae retnes wGl F c uat a Cem s.cn Wn* r;t .n.

[ t orq 9 :arJ Panet Cl rVe m the t e pubbshed in t'e Federal Reitistet. DC E55 and to ye;bn A Imrs Esq.

i l e st and ir atJ.en erJ t'e Any prson who dces n;t wah.or is Rt ? Dw:n Rod Leno.r Ca '

s. .v < . 95 cm J Ame p ,,J.'ej .o N m ea prt)toth.s Tennem e r"t .'. e o f r 9 e s .t 9 . J L uns ng .brd w i.' is s., a p rx ed.r g r 4 rea est prm:ss.on to 4;p .nt.

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Federal RCtister / Vol. 53. No. 8: / Thuesdey. Ap,il 28,19M / Notices 15319 For further details see the a;;>hcat.on reeptrements of the Atomic Energy Au The amendment was effectue as of the for a construction permit dated of 1954 as amended (the Act).and the date ofits issuance. ,

Nos ember 17.19s?. and the apphcant's Comn .ssion's rules and ter.!ations. The The amendment reused the Technical e nurm.er'a! re p sti datea N r.eiber 1. Cmas.ci has made a;;.re;riate 5;ec.f44Rns to ; roue spec.f;c 1997, which along woh any f.ndmas as required by the Act and the actans to be taken when one of the amendments or supplements thereto, are Commiss.on's rules and regulabens in to bittenes suppl >tes DC control power to or wC1 be esai!aN, for pubhc ins;emon CFR Ch;ter 1. w ha.5 are set forth in the the 30 h swach)ard breders is at the Commas on s Pubhc Dw. ment I cense amendment. mcperable. and reused the tirne the Foom,1717 H Street. NW. Washeron. Notice of Consideration ef Issusa.ce of plant may operate woh one tneperable DC. between tu hours of 7 o a m and Amendment and Op;ortunity for battery. The amendment also rnere 415 p m on weekde As they become Heenas in cennectaen with this action esphcitly defmed the surseillances to be asadable.a cery of the safety w as pubbshed in the Federal Register en performed in Modes 5 and 6 es ah.abon repntt b) the Comm ssion's December 16.196? (52 FR 4*10") No The arphcation for amendment 4

staff. the enurwrental asse s sment. th e re a.est for a hennrs or pet 2tien for corn;.Ws weh the standards and preposeJ onstruction permit. the lease to intersene w as f led fe!1owing reprements of the Atomic Energy Act transcripts of the pretear.ng 'his nst.ce of 1914. as amended (the Act). and the cWerences and of the heannt and on Apr.111.19As (13 FR 119::) the Comtr..asion's rules and reg.lations The n+er rates ant dor uments. w 6ll s'io be &marcn puHahed an Ccmm:ssicn has made a;prepna'e

4. i.:.bte at it c dos e lati m Cr ;ies Lauronmen'al Assenment and Findes f.nugs as repted Ly tne Act and the of the prcpcsed construct,on p.ermit may of No 5 gr f. cant linpact retat.ng to Commission's rules and regulatiens in 10 1

t.. .'.t.creJ w M as..ta M e l')re u st .5 c ., e, n me ,ti CFR C$at'er L whah ce ut !crth in tre to the Director. Daioon of Indwnal por f,rther detads with respect to the 1. cense amendment.

and medml Nuclear Safety. U S' arunn see (1) the arphcation for Notice of Consideration of lesuance of Nuclee stegulat^ry Cortmaton. 3 ,rd rent da'ed Neiceber 11104* Amedment anj Opporturts f ar n a.hmaton. DC .M L+ wi the mod f.ed March 4.19 2.121 Amenamer,s lhares in ccenection with tbs action Coranisoon's staff safety evaluatien No 112 u Urense No DTR-29. (3) was pu%shed in the Federal Register en re pert ard enurrem.rul assessment- AweMme*t Na 101 to bcense No ' lech : .1W f M TR 9Ni wren m .lat'e.rm !e; n rurdet A!so in conrnt.cn wah in.s achan, 1)PR-.M and (4) ine Com.maten s o rret t roes. fir m the Natmal relate 1 Safet) Esatuation A!!cf these the Ccmmissien prepared an *~

Tc:hr:ca4 trfermeien Serv.ce. nems are audable fcr pubhc inspection Enutosmental Assessment and Finding Deps'ttent of Comr cree 50% Part ,,,y, coyma, inn s Pubhc Dxument cf No S emf.ca .t impact. w hich w as t R. .! H uJ S, r.c gf r ht Wpn 4 illt 1. Rwn.171? H L'reet NW.. Washm.gta gabbshed in the Federal Regater en DC, and a: the Waukeran Pubbe Ar n) 19,19&S D3 FR 1:836). '

D oeJ et im h.a. Ataalard t%s :.nd L . of w i i wi i

• rc).129 N County Street. Fc.c Imht deta.!: w,'h respect to the F.,r o e h i. c seg A .3r> ts rm .. a D

• W '"'E " # ^ W CI action. see (1) the appbcaten for 4

n' ens (2) (3) and (4) ma) be obtainew amendment de'ed Janu sry 20.1968 (:) ,

j t elmJ C Wau*e- o; e n rmest addresse1 to the U S Amer,dment Ne too to Ucerse No "

( * .' r. W ().',e w 3 r n 6 D os m' Lelear Pegu!=tary Cemmission. Di R *

. and (3) the Commiss.on's

/- u . cic > s fes ce.L : ec u, ?> W.sh naton, DC 20555. Attert:en related Safety Tsaluation. All of these ,

I PRDs ch 9 3*4 F 'ed 4-!*4A A 45 a vl D rec'er. Daision of Reactor Pro:ects nems are as adable for pubiic inspection I

i s e s: ors'sw + w p..,3 at PMe Ata > land th Hu. day at tb Commiscon's Pubhc Document ofApia uAs Ecw rs.171? H Street NW, Washmston.  !

ror The LCear Reg Aicry Coxrr.ss4cn DC, and at the Cr)stal Roer Pubhc 3 lDNset stos. 60195 arid 5) 3341 bbrary. %8 NW., First Asenue. Cr)stal c.mela wier. Roer.nonaa3:s:9 Commonwea:th Edison Co ; tsevance c w y pr, y , p, ,me, fff. p, r ,a o p,, ,,g,y,5,,,,, , ;.3 i of Amendment To Facility and xe g r m.,c , fit fr v ,r y g e;3r g g g,

)

Operating Ucense r.. e s , ggg , g,,

1 The U S Nule at Rev/aun PR D C

• M N'd6- M 8 0 *N Harte) 5.h ee. Se, Commission ICemm selon) tas issued *W coon M**-e b* Pre es t Afregee Pmwr D. wrorce Il-J

) A mendment No 11: to Facihty D ma c' Aecet" Pvets-/ // t" m' I 0;er.'.y L ce nse No DiR-N and V W ? k ' 3'A S ' #*

j Amen rnent No 101 to Fac6h% tow set u 50 3c31 [f P CW wel?2 Filed 4-:*4a. s o :-)

Operstira bo 9se No DPR -44 istaed to swi.e rece nee euw j Comer.unweal h FAsen Coar rans (tke Ficrida Power Coep; issuance of hcenerel. w heh reused the Technical Amendment to Facihty Opeestlog S;cnfu shuns for cretat en of theZw" License R AILROAD RETIREh4ENT BOARD Nwear l'on er Stancn l'nas 1 and : tee fac;ht))lacsted in Zion. f;hnoa Th The l' S Nuc! ear Regulatory Agency Forms Sutsmitted foe OMS amendments we e effnt se as sf the Commavon (the Comm.asient has Remw d.te el their ao.atc e issued Amendment Na 106 to Fanhty 1

The crendments clar " and s.pgrade actm; 4 Railroad Ret:rement Boats Operat.rg beense No DRP.?2 to the 1 th Technical Specifteations for Fler:ds Pew er Cc perman (the a ctiCM: In accorhnce *.th the

, r easurms the ieskap inrush t re n.re Ivented w h.c h reused tr.e Techfucal P4;crwcri Rod.chen Act ef 19% [44 isMation sahes Spenfcewns fcr eperat.on of the U S C Chpter 35), the Board has

, The a ptratan fer the a~endme-t rn ml R u r 3 Rc! ear Generstme s ATi"*d th fo'hw mt Ff 0P:susl ' -

! t m ;leswahths ca-Jc h and fMt. 'ecate 4 m rNras Coant). Flonda. th' cM!ect.cn of mfM9aho9 O W l

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! APPENDIX B  !

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REQUEST FOR EXEMPTION i

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AKIIemIE, Inc.

All Chemico: Wcco Enrichmon'. Inc ,

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tocntTt0 6 #g Docket No. 50-604 o e7 RECENED Yi I AUG 191988 YZ H v- u.si U

? AUG 19198I 'F '.

w a st:t e 4,T u. s. wC' t "0^'I "

August 17, 1988 1, C X " ' I "

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en ip U.S. Nuclear Regulatory Commission 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 licensing 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 fo11cus:

1. 10CFR50.33 - General Information

2. 10CFR50 - Nonapplicability

. 3. 10CFR50 - Exemption Requests *

4. 10CFR50 - Supplementary Informatiota The above is applicable to A1ChemIE Facility 2 -

Oliver Springs. Should you have any questions please contact Mr.

W.A. Pfeifer at A1ChemIE.

Respectfully submitted, ALCHEMIE, INC.

j' ) Lb

( John H. Smelser, Jr.

Chief Executive Officer cc: Dr. A. Thoman Clark. Jr./NRC 4

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\ g llc' I a N2 8 702 kknod A e. Ook Roge. TN 37830 (615) .:s2-0029 t.

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i 10 CFR 50 EXEMPTION REQUIREMENTS  !

Pursuant to the provisions of 10 CFR 50.12(a)(2)(ii), AlchemIE  ;

hereby requests a specific exemption from the following Parts of  !

10 CFR 50, for the reasons hereafter stated:  :

l

1. A special exemption is requested from 10 CFR s 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  !

emergencieb and re f erences ' App 9ndia E as setting l for@. the items in said plan. A review of Appendix j E shows that it concerns, "The potential t radiological hazards to the public associatgd with i the operation of research and test reactors and fuel facilities licensed under 10 CFR 50 and 10 CFR 70. "  ;

< Appendix E, 1. Introduction, third paragraph). l A1 Chem!E is not operating research or test reactors ,

or iuti facilities and, by project definition and  :

the parameters of the license sought, will pose no "potential radiological release." The A1ChemIE l facility is to be used for the production of stable  !

isotopes.  ;

8. 10 CFR 50.34 (b) (6) (v) also addresses emergency [

plans and references Appendix E. 4 i

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 i "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 of the rule."<ii). t r

D. As stated earlier, A1ChemIE will not be processing l special nuclear materials and poses no threat; of

] radiological release. SECY 88-88, fated June 7, {

1 1988, states "The chemical hazards, if any, are  ;

I unrelated to materials licensed under the Atomic Energy Act."< COPY ATTACHED). ,f I i E. The primary issue in NRC's granting A1ChemIE a license is assuring adequate protection of common  ;

i defense and security. This has been addressed in  !

1 A1ChemIE's. Security Plan. Also, and as published in J Federal Register notices 53FR15317 and 53FR15315  !

dated April 28, 1988, the requested license would i govern possession of the centrifuge machines, but  !

not the enriched stable isot, opes produced. l

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i i F. AlchemIE is developing handling, operating and i

emergency procedures for each chemical compound that '

is to be processed. Additionally, under an Air >

' Quality Permit from the Tennessee Department of 3

Health and Environment, A1ChemIE will be required to a repott releases of toxic gases.

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For the foregoing reasons, AlchemIE verily feels that special  !

circumstances exist which make it appropriate and proper to l 5xempt A1CherIE from 10 CFR 50.34 (a) (10) and (b) (6) (v), and j yursuant to 10 CFR 50.12 (a) (2) (ii) AlchemIE does hereby make j 4 application for said exemptions.  ;

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APPENDIX C EXEMPTION e

7590-01 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of Docket No, 50-604 All Chemical Isotope Enrichment, Inc. )

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EXEMPTION I.

All Chemical Isotope Enrichment Inc. (the applicant) has applied for a construction permit to own and operate gas centrifuge machines for the purpose of enriching stable isotopes at a site proposed fo= Oliver Springs, Tennessee.

In order to enrich stable isotopes, AlChemIE is purchasing centrifuge machines from the Department of Energy (DOE). The centrifuge machines were originally i

designed and manufacturus to enrich uranium, but AlChemIE will not use them for that purpose.

Although the enriching of stable isotepe is not ordinarily within the reg'. %cory authority of the Commission, any equipment or device capable of

. I enriching uranium, if intended fcr commercial use, must be licensed by the Commission. Since the centrifage machines AlChemIE will obtain from *.be

Department of Energy are capable of enriching uranium, their possession z$nc use must be licensed. The Commission rule which govtrns the licensing et J

2 production facilities is 10 CFR Part 50. Since all of the centrifuge machines proposed for use at Oliver Springs have been tested using uranium hexafluoride, a thin film of a contamination has been len in each machine, primarily in the rotor.

The deposited material is uranyl fluoride. UO F , a reaction product formed 22 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 it did not carry over with either product or tails in tests with stable isotopes.

The applicant has conservatively assumed the occurrence of an accident which

, releases a fraction of the uranium and is then inhaled by a nearby operator.

The resulta:it dose is inconsequential. NRC staff analysis confinns this conclusion.

II.

Section 50.34(a)(10) requires that applicants provide a discussion of preliminary plans for coping with emergencies. Section50.34(b)(6)(v) requires that applicants provide plans f< coping with emergencies, which shall include the items specified in Appendix E to 10 CFR Part 50, "Emergency Planning and Preparedness for Production and Utilization Facilities."

III.

By letter dated August 17, 1986, the applicant requested an exemption from the requirements of Section 50.34(a)(10), 50.34(b)(6)(v), and Appendix E to 10 CFR l

Part 50. Tha basis fur the request for exemption is that the nature of facility for which the applicant seeks a construction pennit is such that an l l

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3 emergency plan related to radiological hazard is unnecessary and not consistent with the underlying purpose of the regulation. l The NRC staff has reviewed the applicant's request fe' exemption, considering the limited issues the Commission established for findings in its notice published in the Federal Reciater on April 28, 1988 (53 FR 15317).

! In its notice the Comission states that a license issued for the purposes stated above woulu govern possession of the centrifuge machines, but nut the enriched stable isotopes produced. Accordingly, for the purposes of licensing, the only emergency planning to be undertaken by the applicant would be related to radioactive materials. Since the only radioactive material e

under consideration is the uranium firmly fixed to the centrifuge machines, there is no potential radiological hazard for which emergency planning is necessary.

Based on the 60cve discussion the NRC staff finds that the requested  !

exemption is acceptable.

IV. l Accordingly, the Comission has determined that, pursuant to 10 CFR 950.12(1),

the exemption is authorized by law, will not present an undue risk to the public health and safety, and is consistent with comon defense and security.

The Comission has determined that the special circumstance which is present to support an exemption is described in 10 CFR 550.12(a)(2)(11) and (vi). i l

Accordingly, the Consnission hereby grants a permanent exemption from the requirenents of 10 CFR 950.34(a)(10) and ISO.34(b)(6)(v).

l Pursuant to 10 CFR 51.32 the Comission has determined that the granting of l

this exemption will have no significant impact on the environment.

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4 For further details 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, Maryla.;J, this day of , 1988.

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3 APPENDIX D LETTER FROM DEPARTMENT OF ENERGY 4

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, f y'~ 50-664 A!! Cremicol isotece Ennchment. Inc. f

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f htCBygg 'l-) y,xmo Q July 20, 1988 Wt 2I IS8tP pi DI.pg7 b Docket No's: 50-603

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

6A-4 NMSS Docket Materials Gentlemen:

The NRC letter dated April 4, 1988, from A. Thomas Clark, Jr., to William A. Pfeifer requested documentation from the Department of Energy stating that they will accept for disposal all and any centrifuge machines upon individual failure or upon end of life of the entire facility. Please find enclosed a letter from DOE indicating their acceptance of classified matter.

It should also be noted that A1ChemIE has agreed to remove any toxic or hazardous material from classified equipment prior to transfer to DOE for disposal.

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

Pfeifer at AlChemIE.

Sincerely,

~ALCHEMIE', INC.

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John H. Smelser, Jr.

Chief Executive Officer JHS/WAP/bc l

Enclosure 1

e Rne Thoge Cffk e' Park. Sute 202 8 702 Ilknos Ave. Ook Ridge. TN 37830 (615) 282-0029

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Department of Energy O MfEON U "'

e 0.m n.de Opwenone mm3 P. O. Boa E Oak Ridge, Tennesaae 37831 Mr. John H. Suelser, Jr. JUL 24 468 AlchemIE Corporation Pine Ridge Office Park Suite A202-B 702 South Illinois Avenue Oak Ridge, Tennessee 37830

Dear Mr. Smalser:

D3 CONTAMINATION AND DISPOSAL Reference is made to the April 4, 1988, letter from NRC to .

AlChenIE and Mr. Dennis Bell's April 7, 1988, letter to me [

concerning DOE's acceptance of centrifuge machines for disposal.

The bill of sale (Contract No. DE-RO05-880R21776) 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 documentre, tion of its efforts to secura disposal services, DOE is willing to accept for disposal, on a full cost recovery basis, classified (uncontaminated except for uranium) equipment. DrR is not in a

' position to accept hazardous or mixed waste (clastified equipment contaminated with hazardous material and urar.ium;.

Iffurtherdiscussionconcerningthisimpcrtaht subject is deemed necessary please call me at 576-0892.

, sincerely, 8

James C. Hall Assistant Manager for AD-422:WWWistrom/drn Enriching Operations e

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October 13, 1988 ,

The Honorable Lando W. Zech, Jr.

Chairman U.S. Nuclear Regulatory Comission Washington, D.C. 20555

SUBJECT:

LICENSING 0F ALL CHEl11 CAL ISOT0pE ENRICHitENT, INC. FACILITIES During the 342nd meeting of the Advisory Comittee on Reactor Safe-guards, October 6-7, 1988, we discussed the applications of All Chemical Isotope Enrichment, Inc. (ALChem!E) to modify and operate a facility for the separation of stable isotopes at Oak Ridge, Tennessee, and to construct a similar facility at Oliver Springs, Tennessee, near Oak Ridge. During the meeting, we had <Jiscussions with representatives of the NRC staff, the Applicant, and the Department of Energy. We also had the benefit of the documents referenced.

The Applicant plans to use centrifugal enrichment machines purchased from the Department of Energy. These me.hines were designed and built for the enrichment of uranium in a demonstratinn program, and offered for sale when the project was abandoned. The preposed use is for the commercial enrichment of a wide variety of stable isotopes, in larger quantities than have heretofore been available.

Most of these machines, because of their prior use, are sligh'tly contam-inated with uranium, in the centrifuges and in the piping. The amounts total a few tens of kilograms. The average enrichment of the uranium 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 contaminant, 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 machines were designed to separate uranium isotopes, and therefore,

regardless of their intended use have that capebility.

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 now covers and because of the small quantities involved, it has estimated that, even in the event of a substantial accident, the public expcsure would be negligible. We contur in this finding.

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. . The Honorable Lando W. Zech, Jr. October 13, 1988 The safeguards issues have to do with protecting the machines and inspecting 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 proposed licenses.

Sincerely, William Kerr Chairman

References:

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

2. U.S. tiu clea r Regulatory Commission, Office of Nuclear Material Safety and Safeguards, Safety Evaluation Report Related to the Application for Construction Permit for ALChem!E Facility 2, Oliver Springs, Octcber 1988

3. Security Plan for All Chemical Isotope Enrichment, Inc.

Facility 1 - CPDF, Revision 3, August 1988 (Proprietary) , ALChemIE

4. Security Plan for All Chemical Isotope Enrichment, Inc., ALChem!E Facility 2, Revision 3, August 1988 (Proprietary) 1

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APPENDIX f CHRON0 LOGY OF PRINCIPAL CORRESPONDENCE l

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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 Ganeral 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 November 17 letter from AlChemIE.

December 28, 1997 W. Pfeiffer, A1ChemIE, from A.T. Clark, HRC, encic:c:

a list of additional information needed.

January 19, 1988 Letter to NRC from D. Bell, AlChemlE, on Ja ;uary 7, 1988 meeting and safeguards protective measures (enclosure proprietary).

February 3, 1988 Letter to NRC from D. Bell, A1ChemIE, encloses additional information in response to December 28, 1987 letter.

February 16, 1988 Letter to NRC from D. Bell, A1ChemIE, encloses additional information as a result of February 9, 1988 meeting, Stockholders and A1ChemIE-DOE contract for the sale of the centrifuge equipment at GCEP.

February 19, 1988 Letter to NRC from D. Bell, A1ChemIE, encloses omitted descriptive material inadvertently excluded from February 3, 1988 additional information letter.

February 22, 1988 Letter $.o NRC from D. Bell, AlChemIE, on exemption requested to allow A1ChemIE 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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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 AlchemIE 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-

"ion regarding supplemental anti-trust information.

5 3tes the information should supplement the Justice Dep rtment review of DOE's sale of surplus equipment to AlChemIE.

April 4, 1988 Letter to W. pfeiffer, AlChemIE from A.T. Clark, NRC, requests additional information on disposal of centri-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, AIC'hemIE, encloses Section 19.0 cf Security Plan, Rev. 1. Notes title change from Nonproliferation Controls to Safeguards l (enclosure considered proprietary). '

April 19, 1988 Letter to NRC from D. Bell, A1ChemIE, in response to verbal request of April 14, 1988 from A.T. Clark, NRC, l 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, i forwards copies of FR Notices dated April 22, 1988, i on Receipt of Application and Opportunity for Hearing.

l flay 6,1988 Letter to D. Bell, A1ChemIE from A.T. Clark, NRC, I

encloses FR Notices on Establishment of Boards.

May 10, 1988 Letter to D. Bell, AlChemIE from A.T. Clark, NRC, requests addir.ional information related to environ-mental report encloses list of information needed.

May 24, 1988 Letter to NRC from D.L. Bell responds to May 10, 1988

. letter requesting additional information related to '

environmental report.

May 16, 1988 Letter to NRC from D. Bell, A1 Chem!E encloses up-to-date list of AlchemIE stockholders.

June 3, 1988 Letter to W. Pfeiffer, AlchemIE, from A.T. Clark, NRC, encloses request for additional information needed to environmental report, and notes :ost information related to safeguards licenses condition.

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June 9, 1988 Letter to NRC from J.Si. Smelser, AlchemIE, respont to concerns expressed by State of Tennessee in their request to participate.

June 21, 1988 Letter to Wm Pfeiffer, A1ChemIE, from A.T. Clark, NRC, requests additional information needed for environ-mental report, refers to June 9, 1988 from J.H. Smelser.

July 8, 1988 Letter to NRC from J. H. Smelser, A1ChemIE, informs NRC of annual stockholder's meeting on June 18, 1988 and election of Board of Directors and resignation of Dennis Bell.

July 11, 1988 letter to B. Vogler, NRC Antitrust Counsel, from James R. Weiss, Department of Justice, states "...no basis upon which to conclude that an antitrust hearing is necessary regarding A1ChemIE's application..."

July 14, 1988 Letter to NRC from J.H. Smelser, AlchemIE, encloses Revision 2 to Security Plan.

July 15, 1988 Letter to W.A. Pfeiffer, AlchemIE, from A.T. Clark, NRC, request additional financial information.

July 20, 1988 Letter to NRC from J.H. Smelser, A1ChemIE, responds to June 21, 1988 letter from A.T. Clark on additional information on enrichment for naturally occurring radioisotopes, July 20, 1988 Letter to NRC from John H. Smelser, A1ChemlE, refers to April 4, 1988 letter from A.T. Clark and encloses documentation from 00E dated July 14, 1988 on decontamination and disposal of centrifuge machines.

August 2, 1988 letter to NRC from John H. Smelser, AlchemIE, encloses Revision 3 to A1ChemIE's Security Plan.

August 8, 1988 Letter to NRC from W. A. Pfeifer, A1ChemIE, withdraws request for security facility approval for Pine Ridge Office Park.

August 12, 1988 Letter to NRC from John H. Smelser, AlChemIE,

.esponds to June 15, 1988 letter from A.T. Clark and encloses financial information.

August 17, 1988 Letter to NRC from John H. Smelser, AlChemIE, encloses revised 10 CFR 50.33 General Information, 10 CFR 50 Nunapplicability, Exemption Requests, Supplementary Information.

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. August 18, 1988 Letter to A1ChemIE from A.T. Clark, NRC, requests ,

additional information for financial. review. i August 31, 1988 Letter to NRC from John H. Smelser, A1ChemIE, states August 12, 1988 letter should have been consider '

proprietary. -

September 8, 1983 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." .

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

) September 29, 1988 Letter to H. Thompson, NRC, from H. H. Mobley, 1 Tennessee Department of Health and Environment

, regarding enrichment of naturally occurring radioisotopes.

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October 13, 1988 Lotter to NRC Chairman from Advisory Committee on '

Reactor Safeguards, supporting issuance of the

proposed licenses, i 1

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