ML20206E908

EDO Control of Rulemaking Package Re 10CFR20, Stds for Protection Against Radiation, Requiring Reporting of Theft or Loss of Licensed Nuclear Matl.Termination of Rulemaking Approved

ML20206E908
Person / Time
Issue date:	05/06/1985
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Minogue R NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
References
NUDOCS 8606240037
Download: ML20206E908 (41)

Text

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. MAY 0 61985 f)

MEMORANDUM FOR: Robert B. Minogue, Director Office of Nuclear Regulatory Research FROM: William J. Dircks Executive Director for Operations

SUBJECT:

CONTROL OF NRC RULEMAKING By memorandum of February 13, 1984, " Control of NRC Rulemaking by Offices Reporting to the EDO," Offices were directed that effective April 1,1984, (1) all offices under EDO purview must obtain my approval to begin and/or continue a specific rulemaking, (2) resources were not to be expended on rule-makings that have not been approved, and (3) RES would independently review rulemaking proposals forwarded for my approval and make recomendations to me concerning whether or not and how to proceed with the rulemakings.

In accordance with my directive, the following proposal concerning rulemaking has been forwarded for my approval.

In an April 26, 1985 memorandum to me, you recomended termination of the RES sponsored revision of 10 CFR Part 20 (Standards for Protection Against Radiation) to require reporting of theft or loss of licensed nuclear material. Termination of the rulemaking is recomended because it duplicates another RES sponsored rulemaking.

I approve termination of this rulemaking. The NRC Regulatory Agenda (NUREG-0936) should be modified to reflect the status of this rulemaking.

(Signed) William L Dircks r606240037 850506 RM EU

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APR 2 61965 MEMORANDUM FOR: William J. Dircks Executive Director for Operations FROM: Robert B. Minoque, Director Office of Nuciaar Regulatory Research

SUBJECT:

CONTROL OF NRC RULEMAKING: RES REVIEW OF ONG0ING RES SPONSORED RULEMAKING Based on our review of the ongoing RES sponsored rulemaking, which requires the reporting of all theft or loss of licensed material,10 CFR 20.402, RES recomends that this rulemaking should be terminated. This recomendation in draft form has been coordinated with the Office of Nuclear Material Safety and Safeguards.

The basis for this recomendation is as follows:

RES has an ongoing rulemaking effort for an overall revision of Part 20 that includes a new 620.1201 which is essentially identical to this proposed amendment,i.e.,$20.402. The RES independent review of the proposed revision of Part 20, which included the requirements of this proposed section ($20.402) was performed, and it was recomended that the rulemaking go forward. You approved the RES recomendation on March 18, 1985.

Recent discussions with NMSS, IP and IE indicate that the need for this rulemaking is not imediate, and that terminating this rulemaking is acceptable since it is included in the ongoing overall revision of Part 20.

The complete RES review package has been sent to OED0 (Attention: DEDR0GR)and to the Director, NMSS.

/d4d 137)w Robert B. Minogue, Dttector Office of Nuclear Regulatory Research

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Executive Director for Operations SFrattali R/F FROM: Robert B. Minogue Director Office of Nuclear Regulatory Research

SUBJECT:

CONTROL OF NRC RULEMAKING: RES REVIEW 0F ONGOING RES SPONSORED RULEMAKING

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recommends that this rulemaking should be terminated. This recommendation in draft form has been coordinated with the Office of Nuclear Material safety and v Safeguards."

The basis for this recommendation is as follows:

h i RES has an ongoing rulemaking effort for an overall revision of Part 20 that includes a new 520.1201 which is essentially identical to this proposed

- amendment, i .e. , 520.402. The RES independent review of the proposed revision ofPart20,whichincludedtherequirementsofthisproposedsection(120.402) was performed, and it was reconnended that the rulemaking go forward. You approved the RES recommendation on March 18, 1985.

Recent discussions with IMSS IP and IE indicate that the need for this E

rulemaking is not immediate, and that terminating this rulemaking is acceptable since it is included in the ongoing overall revision of Part 20.

The complete RES review package has been sent to OED0 (Attention: DEDR0GR)and to the Director, IMSS.

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RollERT B. uramnT Robert B. Minogue, Director Office of Nuclear Regulatory Research l

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TO: F. P.'GILLESPIE, CHAIRMAN, RIRB FROM: K. R. Goller, Member, RIRB TITLE OF RULEMAKING: Reports of Theft or Loss of Licensed Material (Part 20)

AGREE WITH RECOPMENDATIONS IN RES RULEMAKING REVIEW PACKAGE .

MODIFY RECOPMENDATIONS IN . NOT PARTICIPATING.

[ RES RULEMAKING REVIEW PACKAGE AS INDICATED BELOW COPMENTS AND SUGGESTIONS:

Recomendation that this rulemaking effort should be subsumed (future tense) into the ongoing overall revision of Part 20 should be changed to reflect the fact that it already has been so subsumed.

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TITLE OF RULEMAKING: Reports of Theft or Loss of Licensed Material (Part 20) l AGREE WITH RECOMENDATIONS

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TITLE OF RULEMAKING: Reports of Theft or Loss of Licensed Material (Part 20)

AGREE WITH RECOMENDATIONS IN RES RULEMAKING REVIEW PACKAGE MODIFY RECOMENDATIONS IN NOT PARTICIPATING.

RES RULEMAKING REVIEW PACKAGE AS INDICATED BELOW COMMENTS AND SUGGESTIONS:

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- will be appreciated. RAMRB will use the voting sheets to assemble the complete RES review package for eventual transmittal to the OEDO and the Director of the user office.

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. PTing HF_SG/rdg HFSG/subj MEMORANDU't FOR: William J. Dircks SFrattali Executive Director for Operations SFrattali R/F FRO:4: Robert B. Minogue. Director Office of Nuclear Regulatory Research

SUBJECT:

CONTP.0L OF NRC RULEMAKING: RES REVIEW 0F ONGOING RES SPONSORED RULEMAKING Based on our review of the ongoing RES sponsored rulemaking, which requires the reporting of all theft or loss of licensed material,10 CFR 20.402, RES recontnends that this rulemaking should be teminated. This recomendation in draft form hu been coordinated with the Office of Nuclear Material Safety and Safeguards.'

The basis for this recomendation is as follows:

RES has an ongoing rulemaking effort for an overall revision of Part 20 that includes a new $20.1201 which is essentially identical to this proposed amendnent, i.e. , 520.402. The RES independent review of the proposed revision of Part 20, which included the requirements of this proposed section (920.402) was performed, and it was recomended that the rulemaking go forward. You approved the RES recomendation on March 18, 1985.

Recent discussions with NMSS. IP and IE indicate that the need for this rulemaking is not imediate, and that teminating this rulemaking is acceptable since it is included in the ongoing overall revision of Part 20.

The complete RES review package has been sent to OEDO (Attention: DEDROGR)and to the Director NMSS.

Robert B. Hinogue, Director Office of Nuclear Regulatory Research j ._ .. ..

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REGULATORY 'iAGENDA ENTRY

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1 TITLE:

Reports of Theft or Loss of Licensed Material CFR CITATION: .

10 CFR 20 ABSTRACT: -

The proposed rule would remove a discretionary clause that requires each stRC licensee to report a loss or thef t of licensed material only when it appears to the licensee that the loss or thef t would pose a substantial hasard to persons in an unrestricted area. The proposed rule would provide increased radiological safety to the public by requiring that all losses or thef ts of licensed material be reported to the NRC if the loss exceeds the minimum quantity specified in the regulations. The estimated total annual cost to af fected licensees is $6,000, or approximately $200 per license. The estimated cost to the NRC is

$2,000 annually. ,

TINETABLE:

NPRM 05/09/83 48 FR 20721 NPRN Comment Period Begin 05/09/83 NPRM Comment Period End 06/23/83 Final Action Subsumed into the overall 10 CFR 20 rulemaking.

LEGAL AUT50RITY: -

42.USC 2073 EFFECTS ON SNkLL SUSINESS AND OFEER ENTITIES: No AGENCY CONTACT:

Dr. Sandra D.' Frattali +-

Office of Nuclear Regulatory Research .

Washington, DC 20555' .

30T 443-Z890 ,

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SUBPART M - REPORTS S 20.1201 Reports of theft or loss of licensed material.

(a) Telephone reports. -

(1) Each licensee shall report by telephone as follows:

(i) Immediately after its occurrence becomes known to the licensee, any lost, stolen, or missing licensed material in such quantities and under such circumstances that it appears to the licensee that a substan-tial er/;osure could result to persons in unrestricted areas; or (ii) Within 30 days after the occurrence of any lost, stolen or missing licensed material becomes known to the licensee, all licensed material in a quantity greater than ten times the quantity specified in Appendix C of this part which is still missing at this time.

(2) Reports must be made as follows:

(i) Licensees having an installed Emergency Notification System shall make the reports to the NRC Operations Center in accordance with S 50.72 of this chapter; and (ii) All other licensees shall make reports to the Administrator of the appropriate NRC Regional Office listed in Appendix 0 of this part.

(b) Written reports.

(1) Each licensee who is required to make a report under paragraph (a) l of this section shall, within 30 days after learning of the occurrence of any lost, stolen or missing licensed material, report in writing the following information:

(i) A description of the licensed material involved, including kind, quantity, and chemical and physical form; (ii) A description of the circumstances under which the loss or theft occurred; 130 Enclosure 1 l

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[7590-01]

(iii) A statement of disposition, or probable disposition, of the licensed material involved; l

(iv) Exposures of individuals to radiation, circumstances under l

which the exposures occurred, and the possible effective dote equivalent l to persons in unrestricted areas; '-

(v) Actions which have been taken, or will be taken, to recover the material; and (vi) Procedures or measures which have been, or will be, adopted to ensure against a recurrence of the loss or theft of licensed material.

(2) Reports must be made as follows:

(i) For holders of an operating license for a nuclear power plant, the events included in paragraph (b) of this section must be reported in accordance with the procedures described in S 50.73(b), (c), (d), (e),

and (g) of this chapter and must include the information required in paragraph (b)(1) of this section.

(ii) All other licensees shall make reports to the Administrator of the appropriate NRC Regional Office listed in Appendix D of this part.

(c) A duplicate report is not required if the licensee is also required to submit a report pursuant to SS 30.55(c), 40.64(c), 50.72, 50.73,70.52,73.27(b),73.67(e)(3)(vi),73.67(g)(3)(iii),73.71,or 150.19(c) of this chapter.

(d) Subsequent to filing the written report, the licensee shall also report any additional, substantive information on the loss or theft within 30 days after the licensee learns of such information.

1 (e) The licensee shall prepare any report filed with the Commission pursuant to this section so that names of individuals who may have received exposure to radiation are stated in a separate and detachable part of the report.

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, MEMORANDUM FOR: William J. Dircks '.

Executive Director for Operations FROM: Robert B. Minogue, Director Office of Nuclear Regulatory Research

SUBJECT:

PROPOSED AMElWMENT TO 10 CFR PART 20 -

MODIFICATION OF REPORTING REQUIREMENT FOR THEFT OR LOSS OF LICENSED MATERIAL

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Enclosed for your signature is a notice of proposed rulemaking which would

-amend 320.402 to modify the judgmental portion of the regulation.

. u..4.L1f.e.. r 4 i This rulemaking activity ceseMed.4eem an MRC licensee's delay in reporting i the loss or theft of licensed material. In September 1979 an NRC licensee was notified by one of its customers that a package of licensed sterial had not been received. In November 1980, the licensee reported the loss or theft of the licensed material to the NRC, fourteen months after the licensee ins first notified that the material was missing. The lic.ensee failed to report the material missing at an earlier date because 10 CFR 20.402 does not require a report unless the licensee believes that the missing material constitutes a substantial hazard to persons in omrestrictea areas.

The substance of the proposed amendment is the replacement of the existing reporting requirement with a dual requirement such that:

1. All lost, stolen or missing licensed anterial which constitutes a substantial hazard is to be reported inmediately.

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2. All ether lost, stolen or missing licensed unterial (in a quantity greater than the minimum specified in the amended regulation) will be mported if still missing after a period of 30 days.

This dual requirement will ensure that lost, stolen or missing licensed material of significant hazard such as radiography sources will be reported immediately, while materials of lesser hazard will be mported only if they are still missing after 30 days. This procedure will give the NRC an opportunity to assess the hazards of all missing unterial and undertake any actions it deems necessary and at the same time it will allow the licensee adequate time to search for missing material of lesser hazard. *

, This approach is in keeping with a recent Commission policy statement i

concerning responsibility of licensees, published in the Federal Register of July 20,1982 (47 FR 31482). While the proposed rule contains a requirement for additional reporting, the number of such additional reports will be small and should have no significant impact on licensees.

Contact:

D. O. Nellis, RES 443-5825

8. Buchbinder, RES 443-5997

,. . . . Since this proposal does not raise a significant questien of policy, I recommend that you sign (under authority delegated in 10 CFR 1.40(d)) the enclosed notice of proposed amenhent of 10 CFR 20.402. The appropriate Congressional consnittees will be infomed of this proposed revision of reporting requirements. A notice regarding publication of the amer hent will be included in the next Weekly Report to the Commission.

I Note: Since this proposed amendnent concerns basic radiation protection standards that could affect the public across state boundaries, it.will be a matter of compatibility between the NRC and the Agreement Stattis? ~

Coordination: The Offices of Nuclear Materials Safety and Safeguards, State Programs. Inspection and Enforcement and A&ninistration concur in the enclosed amen &nent to 10 CFR 20.402. The Office of the Executive Legal Director has no l 1egal objection. The Office of Public Affairs concurs that a public announce-ment will not be issued.

Robert B. Minogue, i ctor Office of huclear Regulatory Research

Enclosures:

A. FR Notice of Froposed Rulemaking B. Value/ Impact Statement C. Draft Congressional Letter Approved For Publication In a final rule published March 19,1982 (47 FR 11816), the Consnission dele-4 gated to the ECO (10 CFR 1.40(c) and (d)) the authority to develop and promul-gate rules as defined in the APA (5 U.S.C. 551(4)) subject to the limitations in NRC Manual Cbpter 0103.- Organization and Functions Office of the Executive Director for Operations, paragraphs 0213. 038, 039, and 0310. The enclosed proposed rule entitled " Reports of Theft or Loss of Licensed Material" amends 10 CFR Part 20 to require all lost or stolen licensed material (in a quantity greater than the minimum specified in the amended regulation) which is still missing 30 days after the discovery of the loss be repctted to the Nuclear Regulatory Conunission. In issuing this proposed rule, the EDO is acting in accordance with the general policy guidance provided by the Commission in a final rule regarding reports of loss or theft of licensed material (34 FR 7500).

This proposed rule does not constitute a significant question of policy, nor does it amend regulations contained in 10 CFR Parts 0, 2. 7, 8, 9 Subpart C, or 110. I, therefore, find that this rule is within the scope of my rulemaking authority and am proceeding to issue it for public consnent.

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WCLEAR REGULATORY C0fMISS10N

. 10 CFR Part 20 Reports of Theft or Loss of Licensed Material t

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

SutMARY: The Nuclear Regulatory Commission is considering amending its regulations concerned with reports of theft or loss of licensed materi,al.

The proposed amendment would modify that part of the regulation which i permits licensee judgment in the reporting of loss or theft of licensed material, with a requirement that the licensee report all licensed material (in a quantity greater than the minimum specified in the amended regulation) lost, stolen or missing for more than 30 days after its absen::e becomes known to the licensee. Modification of this judgmental condi-

tion will result in the reporting of all significant losses or thefts and will provide assurance that adequate radiological safety evaluations, i for the purpose of protecting the public, are made by the NRC as well

as the licensee in investigating the circumstances surrounding any loss -

l or theft of licensed material.

DATES: Comments should be submitted on or before .

Comments received after this date will be considered if it is practic-able to do so, but assurance of consideration cannot be given except as to comments received on or before that date.

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ADDRESSES: Submit written comments on the proposal and/or the supporting value/ impact statement to the Secretary of the Ccamission, U.S. Nuclear

, Regulatory Commission,, Washington, DC 20555, Attention: Docketing and Service Branch. Single copies of the valuelimpact statement may be obtained 1 Enclosure A

_ _-_ ,_ ___1 __ _-

[7590-01) on request from the contact identified below. Copies of the value/ impact statement and of comments received by the Commission may be examined in the Commission's Public Document Room at 1717 H Street NW., Washington, DC.

F0'R FURTHER INFORMATION CONTACT: Donald 0. Nellis, Office of _ Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Wa'shington, DC 20555, telephone (301)443-5825.

SUPPLEMENTARY INFORMATION:

BACKGROUND On November 12, 1980, the Radiation Safety Officer of an NRC licensee notified the Nuclear Regulatory Commission of the loss or theft of a package of licensed material. The package, containing 10 12.5-millicurie cesium-137 sealed sources, uns placed in the transportation system to be shipped to South Korea in February 1979. In September 1979, the licensee was notified that the package had not been received. It did not, however, report the loss or theft to the Nuclear Regulatory Commission, in accord-i ance with 10 CFR 20.402, until November 1980 because it believed that the unopened package was somewhere within the transportation systentind  ;

did not constitute a significant hazard to persons in unrestricted areas.

The Cs-137 sources were contained in a sealed lead pipe shield, held in a plywood frame in the center of a Department of' Transportation Specification 7A package. Radiation levels from the package were reported to be 1,8 mR/hr (millirea/ hour) at 3 feet and 16 mR/hr on contact.

Assuming that the package had indeed been opened, radiation levels of 48 mR/hr at 3 feet, 436 mR/hr at 1 foot, and 1742 mR/hr at 6 inches '

would have been present. These radiation levels are considerably in excess of the level specified for unrestricted areas in i 20.105.

The Nuclear Regulatory Commission considers that inexcusable delays in reporting missing material such as described above, could, under plausible circumstances, constitute significant hazards to persons engaged in the transportation industry and to the public in general.

The staff recognizes that currently 10 CFR 20.402 due to its judgmental language does not require a report if a licensee believes that a loss 2 Eaclosure A

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or theft does not constitute a substantial hazard in unrestricted areas. ,

A Notice of Violation was issued to the licensee in this case because of l its failure to exercise reasonable judgment. However, the NRC staff l thinks that the existing regulations should be amended to require l Ifeensees to apply a common standard to the reporting of los_t.or stolen licensed material. This approach is in keeping with a recent Commis-sion policy statement concerning the responsibility of licensees, published in the Federal Register of July 20, 1982 (47 FR 31482). The Commission, therefore, is proposing to amend $ 20.402 to modify the

, judgmental language which allows the licensee to decide whether or not to report a loss or theft of licensed material. In order to reduce the

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number of reports required under the amended version of 5 20.402, the -

Commission has decided that only losses or thefts of licensed material in quantities greater than 10 times the quantities specified in Appen-dix C of Part 20 need be reported. The bases for this judgment are 5 20.303(b)(2) which permits licensees to discharge into sanitary sewage systems 10 times the quantities specified in Appendix C of Part 20, and

$ 32.19(a) which permits the sale or transfer of up to 10 exempt quant-ities (as set forth in 5 30.71, Schedule B) in a single transaction.

4 ProposedActiob The NRC is proposing to amend 5 20.402 to modify the judgmental part of the present regulations so that all licensed material (in a quantity greater than the minimum specified in the amended regulation) m,issing j for more than 30 days will be reported without regard to the hazard involved to persons in unrestricted areas.

PAPERWORK REDUCTION ACT STATEMENT In NRC regulations, there are a number of requirements for the reporting of situations where specified materials are lost, stolen or missing. These requirements already achieve the geals of the proposed

3 Enclosure A

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.. .. [7590-01) i I 20.402 for these materials and situations. Accordingly, the proposed amendment provides that a licensee who files a report of material lost, stolen or' missing under one of these' requirements need not file a report under the proposed amendment. A list of the pertinent regulations is found in paragraph (d) of the amended regulatory text. . . _ .

The proposed rule will be submitted to the Office of Management and Budget for clearance of the reporting requirements that may be approp-riste under the Paperwork Reduction Act [ Pub. L.96-511). The SF-83

" Request for Clearance," Supporting 5tatement, and related documentation j submitted to ONB will be placed in the NRC Public Document. Room at 1717 H Street W. , Washington, DC 20555. The material will be available for inspection and copying for a fee. -

REGULATORY FLEXIBILITY CERTIFICATION On the basis of information available to it, the NRC, in accordance i

with the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b), hereby certifies i that this rule will not, if promulgated, have a significant economic impact on a substantial number of small entities. '

There are approximately 8000 NRC fuel cycle and materials licensees of which approximately one half or 4000 qualify as small entities and consist for the most part of hospitals or medical facilities. The present '

reporting requirements under 5 20.402 result in approximately 25 reports -

ann'ually (from all 8000 licensees) which require licensees to devote an average of 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br /> for each report or a total of 75 staff hours annually.

The proposed amendment could result in 30 to 35 additional reports annually for a total increase of roughly 100 licensee staff hours spread out among the 8000 licensees. The Commission will welcome any comments regarding this Regulatory Flexibility Certification.

LIST OF SUBJECTS IN 10 CFR PART 20 i Byproduct material, Licensed material Nuclear materials, Nuclear power plants and reactors, Occupational safety and health, Packaging and containers, Penalty, Radiation protection, Reporting requirements, Special nuclear material, Source material, Waste treatment and disposal.

4 Enclosure A l . . - -

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For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, notice is hereby given that the NRC is proposing to adopt the following amendments to 10 CFR P_ art 20.

PART20-STANDARDSFORPROTECTIONAGAINSTRAdIITION

1. The authority citation for Part 20 is revised to read as follows:

AUTHORITY: Secs. 53, 63, 65, 81, 103, 104, 161, 68 Stat. 930, 933, ,

935, 936, 937, 948, as amended, (42 U.S.C. 2073, 2093, 2095, 2111, 2133, j 2134, 2201); secs. 201, as amended 202, 206, 88 Stat. 1242, as amended, j 3244, 1246, (42 ,U.S.C. 5841, 5842, 5846).

_. . For the purposes of sec. 223, 68 Stat. 958, as amended, (42 U.S.C.

j 2273), il 20.101, 20.102, 20.103(a), (b), and (f), 20.104(a) and (b),

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20.105(b),20.106(a),20.201,20.202(a),20.205,20.207,20.301,20.303, 20.304 and 20.305 are issued under sec. 161b, 68 Stat. 948, as amended, (42 U.S.C. 2201(b)); and 55 20.102, 20.103(e), 20.401-20.407, 20.408(b),

and 20.409 are issued under sec 161o. 68 Stat. 950, as amended. (42 U.S.C.

2201(o)).

2. 5 20.402 is amended as follows: ,

a. Paragraphs (a) and (b) are revised, l>' b. New paragraphs (c) and (d) are added. ,

c. Existing paragraphs (c) and (d) are redesignated (e) and (f),

respectively.

l 5 20.402 Reports of theft or loss of licensed material.

(a) Each licensee shall report by telephone to the Regional

-Administrator of'the appropriate Nuclear Regulatory Commission Regional Office listed in Appendix D of this part:

(1) Immediately after its occurrence becomes known to the licensee,

, any lost, stolen or missing licensed material in such quantities and under such circumstances that it appears to the licensee that a substantial hazard may result to persons in unrestricted areas; or I (2) Within 30' days after the occurrence of any lost, stolen or

! missing licensed material becomes known to the licensee, all licensed material (in a quantity greater than 10 times the quantity specified in

. Appendix C of this part) which is still missing at.this time unless the material has already been reported under paragraph (1).

5 Enclosure A

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f (b) Each licensee who is required to make a report pursuant to paragraph (a) of this section shall, within 30 days after making the telephone report required under paragraph (a), make a report in writing to the appropriate NRC Regional Office listed in Appendix-D with copies to the Director of Inspection and Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, setting forth the following information:

a a a a a (c) Lost or missing licensed material, for the purpose of. this section, means any licensed material whose location is unaccounted for. It includes such material which has been shipped but has not reached its destination and whose location cannot be readily traced in the transportation systas. ,

(d) A duplicate report is not required if the licensee is required to submit a report pursuant to 55 30.55(c), 40.64(c), 50.72, 70.52, 73.27(b),

73.67(e)(3)(vi), 73.67(g)(3)(iii), 73.71 or 150.19(c) of this chapter.

A R A A A i

Dated at Bethesda, Maryland this 8 day of A&w9 1983 For the Nuclear Regul,atory Commission.

William J. Dircks l Executive Director for Operations l

h 6 Enclosure A

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VALUE/ IMPACT STATEMENT CONCERNING THE PROPOSED AMENbMENT TO 10 CFR 20.402 REPORTS OF THEFT OR IDSS OF LICENSED MATERIALS 1 )

1. PROPOSED ACTION

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1.1 Description The proposed action consists of amending 10 CFR 20.402, " Reports of theft or loss of licensed material," by significantly reducing the need for a licens'ee to use personal judgment in deciding whether or not to report licensed material that is lost, stolen or missing.

1.2 Need for The Proposed Action 10 CFR Part 20 establishes standards for protection against radiation hazards arising out of activities under licenses issued by the Nuclear Regulatory Commis-sion. The particular regulation of concern here,10 CFR 20.402, requires that the licensee report any loss or theft of licensed material immediately after its occurrence becomes known to the licensee, if it appears that a substantial hazard may result to persons in unrestricted areas due to the circumstances or j quantities of licensed material involved. The judgmental posture adopted by the licensee in these circumstances then becomes the determining factor in whether or not a report of the loss or theft is made.

Under the present regulation, an error in judgment can conceivably lead to substantial" hazards. An example would be for the licensee to assume that missing material is merely misplaced or that it will always remain in its shielded container. Some modification of the reporting requirement is needed l

3 Copies of the V/I Statement are being placed in the NRC Public Document Room, l 1717 H Street NW. , Washington, DC 20555, where they will be available for public inspection and where copies may be made for a fee.

1 Enclosure B

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l to ensure that adequate radiological safety evaluations are made by the NRC as well as the licensee in investigating the circumstances surrounding any 1pss or theft of licensed material and assuring that appropriate actions are taken to mitigate any potential hazards. -

In addition, it is recognized that certain licensees operate-facilities utilizing material flow. Here the licensed material is generally mixed with other material, hidden from sight, and its quantity is not always precisely

, known. Under these conditions, evidence of loss or theft of licensed material develops slowly so that the " occurrence" of loss or theft does not appear to have a fixed reference point in time. While a certain amount of judgment is required, a time will come at which the licensee is no longer able to associate the missing material with expected process losses and their associated errors.

At this time, the licensee should be required to report the matter to the NRC by telephone as specified in 10 CFR 20.402(a), regardless of any judgmental decision concerning the hazards involved.

1.3 Value/ Impact of the Proposed Action i

i 1.3.1 NRC i The NRC receives approximately 25 reports annually under the present ,

requirements of 10 CFR 20.402(a) and (b). The proposed action is expected l to increase the number of reports somewhat, but -the increase will number only

.- about 30 or so reports annually. This estimate is based on information supplied by NRC licensees using the reporting requirements outlined in the proposed rule.

These additional reports will enable the NRC Regional Office closest to

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the licensee to assess the potential hazards of the situation and to institute whatever actions it deems appropriate. Staff resource time requirements are expected to be minimal. The proposed action is not expected to have any other significant impact on the NRC.

1.3.2 Other Government Agencies Not applicable.

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1.3.3 Industry The proposed amendment should result in approx,imately 30 additional reports annually from industry licensees.

Industry licensees affected by the proposed amendment would for the most part be "small entities." Since the number of small entities affected (approximately 30) will be small compared to the totality of suc'h entities (4000) and since the economic impact of the amendment is not significant, a regulatory flexibility analysis is unnecessary in this case.

1.3.4 Public The proposed amendment will benefit the public by involving the NRC

-. whenever events occur in which licensed material appears to be missing for '

extended periods of time. The NRC will provide an additional assessment of the hazards to the public and will institute appropriate procedures to reduce the hazards where required. Since there are few instances in which significant hazards exist, the cost to the public of follow-up action should be minimal.

j 2. TECHNICAL APPROACH Not applicable.

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l 3. PROCEDURAL APPROACH There are no other regulatory procedural approaches that may be used to effect the above action. ,

4. STATUTORY CONSIDERATIONS 4.1 NRC Authority The proposed amendment would be-issued under the authority of 5161b. , i. ,

and o. of the Atomic Energy Act of 1954, as amended, and 5 201 of the Energy Reorganization Act of 1974 as amended.

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4.2 Need for a NEPA Statement i

In accordance with 10 CFR 51.5(d)(3), an environmental impact statement is not required. -

5.

RELATIONSHIP TO OTHER EXISTING OR PROPOSED REGULATIONS OR POLICl_

In the NRC regulations, there are a number of requirements for the 1

reporting of situations where specified materials are lost, stolen or missing.

These requirements already achieve the goals of the proposed 5 20.402 for these materials and situations. Accordingly, the proposed amendment provides that

, _ , a licensee who files a report of material lost, stolen or missing under one of these requirements need not file a report under of the proposed amendment.

6. SUMARY AND CONCLUSIONS 1

l The proposed action will require licensees to report all licensed material (in a quantity greater than the minimum specified in the amended regulation) which is lost, stolen, or unaccounted for, for periods of longer than 30 days.

The action will eliminate situations in which missing material is not reported by modifying the judgmental requirement to make mandatory the reporting of all

'significant missing material after 30 days. The amendment should be published "

as soon as possible.

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DRAFT CONGRESSIONAL LETTER _

4 Enclosed for the infonmation of the Subcommittee are copies of a Notice of Proposed Rulemaking to be published in the Federal Register. ,

Present rules recuire that a licensee report losses or thefts of licensed '

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. material only uncer such circumstances that it appears to the licensee that a substantial hazard might result to persons in unrestricted areas.

The proposed rule would amend 10 CFR 20.402 to modify the judgmental portion of the reporting requirement so that all licensed material (in a quantity greater than the minimum specified in the amended regulation) lost. stolen or missing for more than 30 days after its absence becomes known to the licensee would have to be reported.

The proposed rule should result in no more than 30-35 additional reports

. annually, involving some .100 licensee staff hours spread out among approxi-mately 8000 licensees.- -

In view of the minor nature of the proposed amendnent which merely modified an existing requirement for reporting loss or theft of licensed material, the Commission considers that issuance of a public announcement is not warranted.

Sincerely.

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I Robert B. Minogue. Director Office of Nuclear Regulatory Research

Enclosure:

Notice of Proposed Rulemaking

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! Enclosure C

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m e TASK LEADER RECOPEENDATION f . .

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DRAFT Draft Reconnendations to the EDO Report of Theft or Loss of Licensed Material -

10 CFR 20.402 . . _ ,

Background:

This rulemaking activity was initiated because of an NRC licensee's delay in reporting the theft or loss of licensed material. In September, 1979, an NRC licensee was notified by one of its customers that a package of licensed material had not been received. In November, 1980, the licensee reported the loss or theft of the licensed material to the NRC, fourteen months after the licensee was first notified that the material was missing. The licensee failed to report the material missing earlier because 10 CFR 20.402 does not require a ,

report unless the licensee believes that the missing material constitutes a 4

substantial hazard to persons in unrestricted areas. NMSS requested changing

the regulation to clarify the requirements and significantly reduce the need of a licensee to use personal judgment in the case of stolen, lost or missing material.

Status:

An amendment was proposed to replace the existing reporting requirement with a dual requirement such that:

o All stolen lost or missing licensed material which constitutes a substantial hazard is to be reported innediately.

< o All other stolen, lost or missing licensed material in a quantity greater than the minimum specified in the regulation is to be reported if still missing after a period of 30 days.

This proposed rulemaking was published in the Federal Register (48 FR 20721) on May 9, 1983. The public connent period ended on June 24, 1983. Because of

( other higher priority work, no progress has been made on this rule since then.

i However, RES is proceding at the present time with an overall revision of Part

20. This contains a section, 10 CFR 20.1201, which is essentially identical to this proposed amendment, 10 CFR 20.402. Recent discussions with the user office,IMSS, as well as with IP and IE, indicated that although these offices still feel the clarification and change of the regulations with respect to licensees judgment in reporting loss and theft was necessary, there was not an immediate need for it and it has been subsumed into the overall Part 20 revision.

i Reconnendation:

l We propose that this proposed rulemaking be tenninated.

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O m e TASK LEADER EW10ATION

Scrtening Analysis Reports of Theft or Loss of Licensed Material 10 CFR 20.402

1. The iss'ue to be addressed i.e., the problem to be corrected ,

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o Reporting of stolen, lost or missing licensed material.

2. The necessity and urgency o Licensees under current regulations report to the NRC only those losses of licensed material which the licensee judges to be of significant hazards in unrestricted areas.

o The theft or loss of licensed material in unrestricted areas must '

- . be reported to the NRC because of the NRC's responsibility to protect the health and safety of the public. The reports are NRC's mechanism for assessing the potential hazard to the public from any theft or loss of licensed material and to detennine if additional safety procedures are necessary.

o Clarification and changes of the regulations with respect to licensees judgment in reporting theft and loss is necessary.

o The need for this rulemaking is not urgent.

3. Alternatives to Rulemaking:

o Maintain the status quo. This relies too heavily on judgment of l licensees and does not provide NRC with timely and sufficient information to protect the health and safety of the public.

o Terminate the subject rulemaking since it hs been subsumed into proposed overall revision of Part 20. The language of this l proposed amendment is essentially the same as that of proposed 10 CFR 20.1201.

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o Continue with i %are ! rulemaking. This would be necessary if there was inaneff Aa visi. There is no evidence to support this.

4. How the issue will be addressed through rulemaking o Replace the existing requirement with a dual requirement such that:

1. All stolen, lost or missing material which constitutes a hazard be reported immediately.

2. All other stolen, lost or missing material in a quantity 9reater than the minimum specified in the regulation is to be reported if still missing after a period of 30 days.

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5. How the public, industry and NRC will be affected as a result of the rulemaking.

o NRC: An increase from the approximately 25 reports received annually under the present requirements of 10 CFR 20.402 to about 55 is expected. This estimate was based on information.s.upplied by NRC licensees. Staff requirements are therefore expected to be minimal. No other impact on NRC is expected.

o Industry: The economic impact is not significant since only about 30 additional reports annually are expected. This would affect about 30 licensees out of 4000.

o Public: Public health and safety will be better assured since NRC will provide an additional assessment of the hazard to the public and will institute appropriate procedures to reduce the .

hazards when required. Cost to the public is insignificant.

6. NRC resources and scheduling o Contractual Funds required - none.

o Professional Staff - already included in proposed 10 CFR 20 effort.

o NPRM - merge with 10 CFR 20 rulemaking.

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1 Quality Control Assessment .

Reports of Theft or Loss of Licensed Material of 10 CFR 20.402--

The following is a quality control review of the proposed rulemaking.

o Text of Rule -

o Environmental Impact Statement missing o Paperwork Reduction Act needs to be updated o Regulatory Flexibility Statement included o Regulatory Analysis Statement missing I o Regulatory Analysis is satisfactory o Supporting Statement for OMB packages not included

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EC221980 DISTRIBUTION:

l NMSS r/f SGRI r/f & s/f De sRANDUM FOR: Countissioner Bradford 1 cnuisen Rehm FROM: William J. Dircks LEvans- -

Executive Director for Operations GMcCorkle TSherr

SUBJECT:

INQUIRY REGARDING LDSS OF CS-137 SHIPMENT JShea VStello This memorandum is in response to your menorandum of December bE requesting consent on a comparison betueen a toported incident involving a lost shipment of a small quantity of Cs-137 sealed sources and a similar hypothetical incident involving 4.9 kg of highly enriched uranium (HEU).

Based upon our current physical protection regulations, such a loss could not have gone undetected for the same length of time described in the Cs-137 case.

The licensee. in accordance with existing requirements applying to exports -

[10 CFR ll73.67(e)(3) and (e)(4)]. would have been required to arrange to be notified if the shipment does not arrive at its destination at its estimated time of arrival. Also, a trace investigation would have been required to be initiated 1sumediately if the shipment could not be accounted for at that time.

Since this investigation would be much more timely than that in the g137 case, there would be a much greater probability of locating the lost mater In addition, proposed amendments which are now being prepared for issuance in final form would allow the NRC staff to order delays in subsequent shipments of SNM of moderate strategic significance if a previous shipment is unaccounted ,

for to help assure that an adversary could not accumulate a fonnula quantity through multiple thefts of 1ess than fonnula quantities in transit.

,7 ,pg 1.tt M .

William J. Dircks

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. Executive Director for Operations cc: Chairman Ahearne Connissioner Gilinsky Commissioner Hendrie

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MEMORANDUM FOR: John G. Davis Director Office of Nuclear Material Safety and Safeguards .

FROM: Ray G. Smith, Acting Director

_. . Office of Standards Development -

SUBJECT:

REQUEST FOR RULE CHANGE - 10 CFR PART 20.402 This memorandum is to infors you that we an initiating action to amend 10 CFR 20.402 as requested in your memorandum dated December 22, 1980.

Preliminary discussions with ELD indicate that the proposed changes are -

sufficiently important to warrant that the rulemaking proceed by the -

proposed rule route.

A Task Control Form, the proposed language of the regslation, a preliminary value impact statement and a detailed schedule will be -

forwarded to NMSS for approval by February 20, 1981.

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Ray G. Smith, Acting Director Office of Standards Development 1

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MEMORANDUM FOR: Richard E. Cunningham, Director -

Division of Fuel Cycle and Material Safety Office of Nuclear Material Safety and Safeguards FROM: Frank P. Gillespie, Director Division of Risk Analysis and Operations Office of Nuclear Regulatory Research

SUBJECT:

DRAFT RECOMMENDATION TO EDO CONCERNING WHETHER TO CONTINUE WITH ONGOING RULEMAKING SPONSORED BY RES

" REPORTS OF THEFT OR LOSS OF LICENSED MATERIAL" Enclosed for your concurrence is a draft recommendation to the EDO supported by the draft initial review concerning whether to continue with the subject ongoing rulemaking sponsored by RES for which your office is identified as the user j office.

This memorandum constitutes my concurrence in the enclosed draft recommendation.

I plan to dispatch this memorandum with the enclosed draft recommendation to the RES Independent Review Board, two weeks from the above date.

Please provide your concurrence by telephone to Dr. Sandra Frattali of my staff, (x 37890) and by returning this memorandum with or without connents on the draft reconnendation as indicated on the form provided with this memorandum.

[gFrank x JP. Ah Gillespie, Director Division of Risk Analysis and Operations Office of Nuclear Regulatory Research

Enclosure:

As stated

Receipt acknowledged. Concur. -

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Receipt acknowledged. Concur with coments as follows: -

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Richard E. Cunningham, Director Division of Fuel Cycle and Material Safety Office of Nuclear Material Safety and Safeguards 1

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