ML20207G280

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Requests Commission Approval of Proposed Issuance of License to Transport Logistics Intl,On Behalf of Argonne Natl Lab, Involving Export of Deuterium Oxide (Heavy Water)
ML20207G280
Person / Time
Issue date: 02/17/1999
From: Jun Lee
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:
References
SECY-99-050, SECY-99-050-01, SECY-99-050-R, SECY-99-50, SECY-99-50-1, SECY-99-50-R, NUDOCS 9903120041
Download: ML20207G280 (6)


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February 17, 1999 POLICY ISSUE gg g SECY-99-050 FOR: The Commissioners i

FROM: Janice Dunn Lee, Acting Director Office of intemational Programs

SUBJECT:

PROPOSED LICENSE TO EXPORT DEUTERIUM OXIDE TO SWITZERLAND (XMAT0396)

PURPOSE:

To request Commission approval of the proposed issuance of a license to Transport Logistics Intemational, on behalf of Argonne National Laboratory, involving the export of deuterium oxide (heavy water). The application is being referred to the Commission in accordance with 10 CFR 110.40(b)(3).

DISCUSSION:

On February 1,1999 Transport Logistics Intemational applied for a license (Attachment 1) to export to Switzerland up to 2,635 kilograms of deuterium oxide (heavy water) for use by CU Chemie Uetikon for production of deuterated solvents and compounds for resale to universities, pharmaceutical, petroleum and perfume companies for use as control standards in nuclear magnetic resonance spectrometers.

In response to NRC's request for views on the proposed export, the Executive Branch, in a letter dated February 5,1999 (Attachment 2), recommends that the license be issued to Transport Logistics Intemational. The letter notes that, as a party to the Non-proliferation Treaty (NPT), Of fj Switzerland has committed itself to maintain lAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device, h5Of therefore satisfying criteria (1) and (2) of Section 109b of the Atomic Energy Act, as amended, for exports of nuclear components, substances and items. The remaining criterion, agreement not to retransfer any of the U.S.-supplied heavy water without prior U.S. consent, has been satisfied by the receipt of a generic assurance letter dated October 3,1978 from the Embassy of Switzerland. .Accordingly, it is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security of the United States and that the export is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-proliferation Act of 1978.

CONTACT:

B. L. Wright, OIP/NEMR 415-2342 9,g $g]pf M 1100GO N g (9 - b 9903120041 990217 PDR SECY PDR _ .

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3-1 February 17, 1999 SECY-99-050 FOR: The Commissioners FROM: - Janice Dunn Lee, Acting Director  !

Office of Intemational Programs .

SUBJECT:

PROPOSED LICENSE TO EXPORT DEUTERIUM OXIDE TO i SWITZERLAND (XMAT0396)

PURPOSE-To request Commission approval of the proposed issuance of a license to Transport Logistics intomational, on behalf of Argonne National Laboratory, involving the export of deuterium oxide (heavy water). The application is being referred to the Commission in accordance with 10 CFR 110.40(b)(3).

DISCUSSION On February 1,1999 Transport Logistics intomational applied for a license (Attachment 1) to export to Switzerland up to 2,635 kilograms of deuterium oxide (heavy water) for use by CU Chemie Uetikon for production of deuterated solvents and compounds for resale to universities, pharmaceutical, petroleum and perfume companies for use as control standards in nuclear magnetic resonance spectrometers.

In response to NRC's request for views on the proposed export, the Exewtivs Branch, in a letter dated February 5,1999 (Attachment 2), recommends that the license be icsued to Transport logistics Intemational. The letter notes that, as a party to the Non-proliferation Treaty (NPT),

Switzerland has committed itself to maintain IAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device, therefore satisfying criteria (1) and (2) of Section 109b of the Atomic Energy Act, as amended, for exports of nuclear components, substances and items. The remaining criterion, agreement not to retransfer any of the U.S.-supplied heavy water without prior U.S. consent, has been satisfied by the receipt of a generic assurance letter dated Octo'ser 3,1978 from the Embassy of Switzerland. .Accordingly, it is the judgment of the Executive Branch that the proposed export will not be inimical to the common defense and security of the United States and '. hat the export

! is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-proliferation Act of 1978.

l CONTACT:

B. L. Wright, OIP/NEMR 415-2342 l

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up I 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 also meets the three l specific export licensing criteria of Section 109b of the Atomic Energy Act of 1954, as amended.

i There are no applicable intemational safeguards or foreign physical protection requirements for the proposed export.

RECOMMENDATION:

l That the Commission authorize the issuance of the requested license to Transport Logistics ,

International. l f l 6

Ja Dunn L , eting Director ice of Intemational Programs Attachments: 1. 2/1/99 Transport Logistics intemaitonal Export License Application i 2.1/5/99 DOS Lir RJStratford to JDLee Commissioners' completed vote sheets / comments should be provided directly to the Office of the Secretary by COB Thursday, March 4, 1999.

Commission Staff Office comments, if any, should be submitted to the Commissioners NLT February 25, 1999, weih 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.

DISTRIBUTION: l Commissioners OGC l OCAA 01G OPA OIP OCA CIO CFO EDO SECY

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($71MATID SURD(N P!R flSPm3I TO CCMPLY WfDi THIS NFDRMATION COLUCT APPLICATION FOR LICENSE TO EXPORT ""*5"'8""**'5"""*"8"5"""*^""'""5""'-

SECULATDtY. AND POUCV CtN$lDtR ATDr$ AAI $1TISFED, FORWARD COWuD 78 #EGARDMG NUCLEAR MATERIAL AND EQUIPMENT suRDa t:TuAn TD ?>a meRuaTim mD ucoRD: wAa AGruarf uacu tr e rsu s =UCuu SEGULATDRV CDWW!!$1:N, WASHNCTm. DC 2DSHWl001, AND TO THC PAM8W0pil REDUCTION (S.. Instruellons on A. .rs.)

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3. APPUC ANT'S NAME AND_ ADDRESS, LFE-001 8tts USE ->

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.. uAuf 4 ranspun wgAstAus Ant e:rna t Avaa.' e vc LT Enterprises, Inc. 4. SUPPutR S NAME AND ADORESS iC.,,v,ter, e .ppse.nr 1. n t .uoos., .1m.t.n.11 D, STREET ADDRESS t/.caltry Ser.1

.. NAME 4000 Blackburn Lane, Suite 250 Argonne National Laboratory

c. CITY d. STATE .. zip CODE D. STREET ADDRESS Burtonsville MD 20866 9700 South Cass Avenue
t. TELEPHONE NU C.W. Numb., e Dr.n.s.nl 3 01- 4 21-4,MBE c. CITY c24R (A, d. *.eTATE .. ZIP CODE Argonne IL 60439
6. FIRST SHIPMENT 4. FIN AL SHIPME NT 7. APPLICANT S CONTRACTUAL SCHEDULED S. PROPOSED LICENSE e. U.S. DEPARTMENT OF ENERQY SCHEDULED DELIVERY DATE EXPIRATIOft D ATE CONTRACT NO. ///&newn/

Tebmary 1999 2 years from date of issue

10. ULTIMATE FORE 80N CONSIONEE 11. ULTIMATE EN') USE lRis lUSE CODE .

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CU Chemie Uetikon AG, Chemicals Division D. STkEET ADDRESS (f.catery seres CH-8707, Seestrasse 108 See attached

c. CITY d. COUNTRY Uetikon Switzerland 11.. DATE REouiRED

.2. INTERMEDIATE FOREIGN CONSIONEE .RIS 13. INTERMEDIATE END USE (USE CODE N/A N/A D. STnEET ADDPESS c CITY d. COUNTRY 13.. DATE REQUIRED

14. INTERMEDIATE FOREIGN CONSaGNEE i sus . 15, INTERMEDIATE END USE (VSE CODE-

.. NAME D. STAEET ADDRESS t/.cshry $st.t i

c. CITY d. COUNTRY 18.. D ATE REQUIRED "ag~ o, . n

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a ,,,. '.t,.","9".,':.:,.'*"m. . ,: a.,,., ., " ~g,;g~' ";*,#- == ~g*,,7c" c Uh, 1 Deuterium 2,635 Kg approximat.ely greater than 94% D. vite ,

slight chemical impurity

22. COUNTRY OF OR60lN - l 23. COUNTRY OF CRIGIN - SNM 24. COUNTRIES WHICH ATTACH SOURCE MATERIAL WHERE ENRICHED OR PRODUCED l - l SAFEOUARDS //t An.wn/

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25. ADDITION AL INFORMATION ON CONSIGNEES. END USES, AND PRODUCT DE SCRIPTION (Us. ..p. r. .A r # n.c.. ry/

This material is of U.S. origin, g Q3/j3338

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TLI v Transport legistics International, Inc.

4000 Blackburn Lane, Suite 250 L Burtonsville, MD 20866 ATTACHMENT TO NRC FORM 7 REFERENCE LFE-001 Box #11, Ultimate End Use CU Chemie Uetikon will use the deuterium as a reagent for the production of deuterated solvents and compounds. The process involves use of the deuterium atoms in the heavy water to replace the hydrogen atoms in a number of common organic and inorganic substances (such as sulfuric acid, acetone and chloroform). ..

The resulting compounds and solvents will be resold for use as control standards in nuclear magnetic resonance spectrometers in universities, pharmaceutical companies, petroleum companies and perfumeries.

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Transport Logistics International, Inc.

4000 Blackburn Lane, Suite 250 L Burtonsville, MD 20866 l

l February 1,1999 U.S Nuclear Regulatory Commission ATTN: Ms. Betty Wright OlP/NEMR Mail Stop 4E 9 One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738 i

Dear Ms. Wright:

Please find enclosed an application requesting authorization to export deuterium to Switzerland for use as a reagent for the production of deuterated solvents and compounds.

In compliance with the fee schedule outlined in the June 10,1998 Federal Register, please find enclosed our payment in the amount of $7,900.  ;

Please do not hesitate to contact me at (301) 421-4324 with any questions or comments you may have regarding this application. Thank you for your assistance in this regard.

Be.st regards

'/ 7c [ih L elissa M nn Director, esearch & Consulting Enclosure E5 :l 1'd 2- 03j ml dl0 03Ai30Zu m

9 Uniteo tes Department of State

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February 5,1999 i Ms.Janice Dunn Lee i Acting Director, International Programs

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United States Nuclear Regulatory Commission l Rockville, Maryland

Dear Ms. Lee:

T j- I refer to the letter from your office dated January 15,1999, requesting the views of the l Executive Branch as to whether issuance of an expon license in accordance with the application j 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. XMAT0396 - Transport Logistics International on behalf of Argonne National Laboratory has applied for authorization to expon to Switzerland 2,635 kilograms of heavy water for use by CU Chemie Uetikon for production of deuterated solvents and compounds for resale to universities, pharmaceutical, petroleum and perfume companies for use as control standards in nuclear magnetic resonance spectrometers. 1

- It is the judgment of the Executive Branch that the proposed export will 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 oi1978.

. As a pany to the NPT, Switzerland has committed itself to maintain IAEA safeguards on

' all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device, therefore satisfying criteria (1) and (2) of Section 109b of the Atomic Energy Act, as amended, for expons of nuclear components, substances and items. The remaining criterion, agreement not to retransfer any of the U.S.-supplied heavy water without prior U.S. consent, has been satisfied by the receipt of a generic assurance letter dated October 3, 1978 from the Embassy of Switzerland. A copy of this letter was transmitted to the NRC on October 24,1978.

On the basis of the foregoing, the Executive Branch recommends that the license be i

' issued.

Sincerely, j

- (, N ~

I 15 E IB 5- 833 WJ

' Richard J.K. Strat ord Director c Nuclear Energy Affairs d10 03/\l3338 i

4 Attachment 2

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