ML20207E158
| ML20207E158 | |
| Person / Time | |
|---|---|
| Issue date: | 05/06/1999 |
| From: | Jun Lee NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-99-128, SECY-99-128-01, SECY-99-128-1, SECY-99-128-C, NUDOCS 9906040178 | |
| Download: ML20207E158 (7) | |
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May 6, 1999 SECY-99-128 EQB:
The Commissioners FROM:
Janice Dunn Lee, Acting Director Office of international Programs
SUBJECT:
PROPOSED LICENSE TO EXPORT NATURAL URANIUM TO CANADA FOR TEST AND EVALUATION OF AVLIS FEED MATERIAL (APPLICATION NO. XSOU8762)
PURPOSE:
To request Commission approval of a license to Aerojet Ordnance Tennessee, Inc. (Aerojet),
authorizing the export to Canada of natural uranium rods for testing and evaluation as feed material for the Atomic Vapor Laser Isotopic Separation (AVLIS) program. The application is being referred to the Commission in accordance with 10 CFR 110.40(b)(4) because the end use is related to uranium isotope separation.
DISCUSSION:
On March 2,1999, Aerojet applied for a license (Attachment 1) to export to Cameco Corporation (Cameco) in Canada 113,398 kilograms of natural uranium, in the form of rods, for AVLIS feed material conversion research and development. Cameco, as a sub-contractor to U.S. Enrichment Corporation (USEC), is performing studies on the conversion of uranium tetrafluoride to uranium metal for use as AVLIS feed material. Aerojet has a contract to supply approximately 1,742 kilograms of uranium rods to Cameco and hopes to receive additional orders within the next five years (through the R&D phase). On this basis, Aerojet has applied for an NRC license which would authorize exports to Canada of as much as 113,398 kilograms of natural uranium rods over the next several years.
CONTACT:
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l B.L. Wright, OIP/NEMR 415-2342 9906040178 990506
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2 in response to NRC's request for views on the proposed export, the Executive Branch, in a letter dated April 16,1999 (Attachment 2), recommends that the license be approved. The letter notes that the proposed export to Canada would take place pursuant to the U.S.-Canada
- Agreement for Peaceful Nuclear Cooperation, as confirmed in a letter dated April 15,1999, from the Atomic Energy Control Board of Canada. The Executive Branch judges that the I-proposed export will not be inimical to the common defense and security of the United States, a'nd is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.
International Safeguards Canada is a party to the Non-Proliferation Treaty and, as such, accepts IAEA safeguards on all source and special nuclear matarial in its peaceful nuclear activities.
The latest IAEA Annual Report shows that an IAEA Facility Attachment has been negotiated and is in force for Cameco.
d The staff notes that the IAEA Safeguards implementation Report for 1997 states that, with the exception of the DPRK situation, "...the Secretariat did not find any indication that nuclear material which had been declared and placed under safeguards had been diverted for any l
military purpose or for purposes unknown, or that safeguarded facilities, equipment or non-nuclear material were being misused. All the information available to the Agency supports the conclusion that the' nuclear material and other items which had been declared and placed under Agency safeguards remained in peaceful nuclear activities or were otherwise adequately accounted for."
With regard to physical protection, an evaluation was performed during a visit to Canada in L
September 1996. The conclusion of this review was that Canada's physical protection program was consistent with the then-current version of IAEA INFCIRC/225, i.e., Rev. 3. Staff has reviewed subsequent information received to date, none of which indicates any degradation of physical protection in this country. In addition, staff has determined, on the basis of currently available information, that physical protection in Canada is in conformance with the current p
l version of INFCIRC/225/Rev. 4.
l Review of Other information OIP has reviewed available State Department telegrams and other information and has identified no basis for concem about Canada's commitment to full-scope intemational safeguards or its fulfillment of obligations to the U.S. under the U.S.-Canada Agreement for Peaceful Nuclear Cooperation.
1 4
3 CONCLUSION:
The staff concurs with the Executive Branch judgment that the proposed export would not be inimical to the common defense and security of the United States and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978. The Office of the Executive Director for Operations concurs. The Office of General Counsel has no legal objection.
RECOMMENDATION That the Commission authorize the issuance of the requested license to Aerojet Ordnance Tennessee, Inc.
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M Janice Dunn Lee, Acting Director Office of Intemational Programs i
Attachments:
- 1. 3/2/99 Aerojet Export License Application
- 2. 4/16/99 DOS Letter R.J.K. Stratford to J.D. Lee Commissioners' completed vote sheets / comments should be provided to the Office of the Secretary by COB Friday, May 21, 1999.
Commission Staff Office comments, if any, should be submitted to the Commissioners NLT May 14, 1999, with an information copy to the Office of the Secretary.
If the paper is of such a nature that it requires additional review and. comment, the Commissioners and the Secretariat should be apprised.of when comments may be expected.
I DISTRIBUTION:
Commissioners OGC OCAA'
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- 4. PihAL SHiPMLNT 7, APPUCANTS CONTRACTUAL S. PROPOSED UMNSE
- 0. U.S. DEPARIMENT OF ENEROV SCHEDULED eCEDULED DEUVERY DATE EXPIRAT6DN DATE CD0ffRACT Wo. #f Anewel April 15 1999 Feb. 28 2004 April 15 1999 Feb. 28 2004 a uLumn rouio4 CONuomE pusmun c.,,.3
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..jmEET AcoREu < ear sa ing of Atomic Vapor Laser Isotopic 1 Eldorado Place Separation (AVLIS) feed material
- c. CITY d COUNTRY Port Hope Ontario Canada n.. DAT: REoumED April 15, 1999
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- 27. AUTHORn2ED DrrectAL rector of Contracts 1
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Jonesborough, Tennessee 37659 Tel: 423 753 1280 Fax: 423-753-1279 Email: charles.montford@aerojet.com l
March 2,1999 25:99-035 j
i US Nuclear Regulatory Commission Office of Intemational Programs 11555 Rockville Pike i
Rockville MD 20852-2738 Attention:
Ms. Betty Wright M/S OWFN4E9
Subject:
Export License Application 1
Dear Ms. Wright:
As discussed in our earlier conversations, enclosed is our export license application for the shipment of a quantity of natural uranium rods to Cameco in Port Hope Ontario Canada.
We are currently under contract to supply approximately 1,742 Kg of uranium rods. However, we are hopeful of additional orders within the next five years. Thus, the reason for the 113,398 Kg listed on the application. Also enclosed is our check in the amount of $7,900.00 for the processing of the application.
As we discussed, this requirement is associated with the Atomic Vapor Laser Isotopic Separation (AVLIS) program. We are supplying the uranium rods to Cameco to qualify our process to manufacture AVLIS feed rods. Cameco, in turn, is a subcontractor to the United States Enrichment Corporation (USEC) of Bethesda Maryland.
Your assistance in this process is greatly appreciated. Please contact me if you have any questions.
Sincerely, AEROJET ORDNA CE TEN ESSEE INC.
Charles W. Montford Director of Contracts Enclosures g g b 'O'd O d10 033I305
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.c c Fr,ns 202 647 0775 F.02/03 United States Department of State s
Washington, D.C 20520 April 16,1999 Ms.Janice Dunn Lee Acting Director, International Programs United Sta.es Nuclear Regulatory Commission
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Dear Ms. Lee:
I refer to the letter from your office dated March 10,1999, requesting the views of the Executive Branch as to whether issuance of an export license in accordance with the application hereinafter described meets the applicable criteria of the Atomic Energy Act of 1954, as amended by the Nuclear Non Proliferation Act of 1978:
NRC No. XSOUS762 - Application by Aerojet Ordnance Tennessee Inc. for authorization to export to Canada up to 113,398 kilograms of natural uranium for testing by Cameco for possible qualification of Aerojet as a supplier of Atomic Vapor Laser Isotopic Separation (AVLIS) feed rods. Cameco is a subcontractor for the United States Enrichment Corporation in the AVLIS program.
It is the judgment of the Executive Branch that the proposed export would not be inimical to the common defense and security of the United States, and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.
The proposed export to Canada would take place pursuant to the Agreement for Cooperation Between the United States and Canada, as amended, as confirmed in the enclosed letter dated April 15,1999 from the Atomic Energy Control Board of Canada.
Canada has adhered to the provisions of its Agreement for Cooperation with the United States.
On the basis of the foregoing, the Executive Branch recommends issuance of the requested license.
Sincerely, m
n Richard J. K. Stratford Director Nuclear Energy Affairs Enclo:ure: assurance letter.
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8 APR-16-1999 Er 01 PM/NE 202 647 0775 P.03/03 g*g
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on.... e a r,- t, y H, r.r xtr sss Secretariat rwn ven nou.ww.
Telephone: (613) 995-3018 11-2 3 X3dM h k 15 April 1999 Ms. Trisha Dedik Director Nuclear Transfer and Supplier Policy Division Omcc of Arras Control and Nonproli& ration Department of Enugy Was1dngton,D.C. 20$85 USA p
Dear Ms. Dedik:
Reference is made to your Icner dated 29 March 1999, concerning licence XSOUt762.
I confuTn that the transfer of the material as idcatified on the above-noted licence application will be subject to all of the terms and conditions of the Agmsment for Coooeration concerning the Civil Uscs of Atomic Energy betwcen the Governinent of Canada and the Government of the Urdted States, and that the intermediate consigneo, camoea Corporation, Port Hope, Ontario ls authoriaed to receive and possess the material.
Yours sincerely, f_ =
M.R. Avadhanda NuclentNoe p v*iferation Omcar Non-prolifostion, Safeguards and Scewity Division c.c.: Terri T. Lee, US DOE 4 Betty L. Wright, USNRC s+s Iaarielecognw 16i33905 5045 pu de _ 2 TOTAL P.03 r