ML20209E149

Recommends That Commission Approve Issuance of License to Union Carbide Corp to Export 5,076 Kg Nuclear Grade Graphite to Japan

ML20209E149
Person / Time
Issue date:	03/05/1985
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20209D524	List: IA-85-409, Recommends Commission Approve Inclusion of Permanent Record Dosimeter in Min Acceptable Personnel Dosimetry Sys for Offsite Emergency Workers Proposed by Federal Radiological Preparedness Coordinating Committee ML20209D521 ML20209D717 ML20209D988 ML20209E149 ML20209E154 ML20209E160 ML20209E165 ML20209E176 ML20209E182 ML20209E389 ML20210F421 ML20210F534 ML20210F656
References
FOIA-85-409, TASK-PINV, TASK-SE SECY-85-079, SECY-85-79, NUDOCS 8504050178
Download: ML20209E149 (14)

Text

-

/@ MQvgg POLICY ISSUE (Notation Vote)

March 5,1935 SECY-85-79 For: The Commissioners From: William J. Dircks

~

Executive Director for Operations

Subject:

PROPOSED LICENc TO EXPORT NUCLEAR GRADE GRAPHITE TO JAPAN (XFf.f0315)

Purpose:

To request Commission review of the proposed license. This case is being referred to the Commission because the quantity of graphite exceeds 1,000 kilograms.

Discussion: On January 11, 1985, Union Carbide Corporation filed a license application (Appendix A) for the export of 11,189 pounds (5,076 kilograms) of nuclear grade graphite, valued at $42,151,30, to Japan. The material will be used by the Japan Atomic Energy Research Institute (JAERI) in the manufacture of parts for the Hendel high- temperature gas reactor experimental test loop currently under construction.

It is noted that the proposed export covers similar material, and will be used for the same end use as,the material approved for export by Union Carbide Corporation in NRC export licenses XMAT0290, issued on January 20, 1984 after Commissionreview(SECY-84-8datedJanuary 09, 1984) and XMAT0304, issued on October 3,1984.after Commission review (SECY-84-365datedSeptember 14,1984).

Executive Branch Views and Staff Assessment:

In response to NRC's request for views on the proposed export, the Executive Branch, in a letter dated-February 22, 1985 (Appendix B), advised that:

Contact:

l f)

Elaine Hemby, 0IP (492-7984) /

DL ,

b .- _ _ _ _ . _ _ . .

v. 7 The Commission p Discussion o The proposed export is consistent with the provisions (Continued) of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.

o The proposed export would not be inimical to the comon defense and security of the United States.

o The proposed export meets the requirements of Criteria 1 and 2 of Section 109b of the Atomic Energy Act, as amended, because Japan, as an NPT party, has committed itself to maintaining IAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device.

o The proposed export also meets-Criterion 3 (agreement not to retransfer any U.S.-supplied component or nuclear material without prior U.S. consent) by the receipt of*an' assurance letter from the Embassy of Japan, which is the subject of State's letters to the NRC dated October 20, 1978 and March 13,.1979 (Appendix B).

Based upon the above considerations, the staff agrees with the Executive Branch judgment that' the proposed export meets the three export licensing criteria of Section 109b of the Atomic Energy Act of 1954, as amended, and would not be inimical to the common defense and security of the United States.

With respect to the two previously issued export licenses . .

for graphite to Japan, Union Carbide Corporation has advised the staff.that all of.the material authorized for export under these licenses has been shipped. Union Carbide.also indicated that JAERI has requested a price quote for an additional 200,000 pounds of material; however, as of this date, JAERI has not placed any more orders with Union Carbide.

International ~ Japan, as an NPT party, has committed itself to maintaining Safeguards Review: IAEA safeguards on all of its peaceful nuclear' activities.

The staff has no information on the stage of construction of the Hendel facility. However, since Japan has been cooperative in bringing new facilities under IAEA safeguards and in negotiating facility attachments in a timely manner, the staff has no reason to expect there will be a problem in bringing the Hendel facility under safeguards at an appropriate time. The graphite itself will not be subject to IAEA safeguards because the application of safeguards under Article III(2) of the NPT is limited to source and special nuclear material.

l.. '.

The Comission -

3-5 Recomendation: That the Comission authorize issuance of license XMAT0315 to Union Carbide Corporation.

Scheduling: The 60-day period for Comission review of application XMAT0315 expires on April 29, 1985. The 120-day period expires on June 26, 1985.

.L -o Williai J. Dircks Executive Director for Operations Appendices:

A - Application dated 1/11/85 B - State Department ltrs dtd 2/22/85, 3/13/79 w/ attach, and 10/20/78 w/ attach Commissioners' comments or consent should be provided directly to the Office of the Secretary by c.o.b. Thursdai March 14, 1985.

Commission Staff Office comments, if any, should be submi.tted to the Commissioners NLT Monday, March 11, 1985, with an information copy to the Office of the Secretary. If the paper is of such a nature that it requires additional time for analytical review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION:

Commissioners OGC OPE OI OCA OIA EDO ELD SECY 4

-- , -, n .. -

S 9 48 9 4

m 0

APPENDIX A W

0 m

s I

1 ,

I L

~ .

iOlu NRC-7 G 791 u.S. NUCLEr.R ::EGULATOR Y COMMISSION AP?;tOVED BY GA toCsR no APPLICATION FOR LICENSE TO EXPORT NUCLEAR a-1so22siness23 MATERIAL AND EQUIPMENT /seeinstructions on.neversel I. APPLICANT urE *S le D ATE OF AP'LIC ATION D.APPLIC ANT 5 REFERENCE 2.NRC

=

1/11/85 70-4339-10 j a DOCMET NO. e t.eCEN5f. NO.

usE , g\ o o 3 q \ a. im AT o 2W

3. APPLICANT'S NAME AND ADDRESS l RIS

, _ _ , 4. SUPPLIER'S N AME AND ADDRESS .

Ris tcomoiere awo wr as not saoointmerweir UNION CARBIDE CORPORATION

o. STREET ADOAESS

a. NAME 11 WEST 42ND STREET

c. CITY STATE ZIP CODE b. STREET ADORESS NEW YORK NY 10036 d.

TE LEPHONE NUMBE R (Aree Code - /Wumoer - farenssont c. CITY STATE ZIP CODE 91?-700 ')16?

5. FIRST SHIPMENT G. FINAL SHIPMENT 7. APPLICANT *S CONTRACTUAL StlHEDU:.CG 8. PROPOSED LICENSE 9. U.S. DEPARTMENT OF ENERG' SCHEDULED DELtVERY DATE EXPlRATION DATE CONTR ACT NO. ti/Knoant FEB. 1985 DEC. 1985

10. ULTIMATE CONWGNEE l RIS % "M C

[

e.NAME

11. ULTIMATE END USE ~

$0""C'* O'*"' 0' I*'i'Y ****E JAPANESE ATOMIC ENERGY RESEARCH INSTITUTE

b. STREET ADORESS SEE ATTACHED TOKAIMURA NAKAGUN IBARAGI

c. CITY - STATE - COUNTRY PRFFFCTUDF JAPAN 11a. EST.DATE OF FIRST USE UNKNOWN

12. INTERMEDIATE CONSIGNEE LRIS ' i-%:' +

• a.NAME

13. INTERMEDIATE END USE  % .- +

TOM 0E ENGINEERING COMPANY LTD.

h. STREET ADDRESS SEE ATTACHED 9-2 NIHONBASI 3-CH0ME

c. CITY - STA TE - COUNTRY CH00-KU TOKYO JAPAN *

14. INTERMEDIATE CONStGNEE i3.. EST. DATE OF Finst UsE UNKNOWN

{ __Ri$ 2] 't -

15. INTERMEDIATE END USE [ ;- f

• a NAME .

b. STREET ADDRESS SEE ATTACHED

e. CITY -STATE - COUNTR Y Cd

= 0

16. 15a. EST. DATE OF FIRST USE bN NRC 11. DESCRIPTION 3

18. MAX. ELEMENT 19. M AX.-20. @

(inctucie ch enicel md o/n sicet t6nn ef nuclea metenet; gise dottar value of nuchmer enuupment me g eponena) yg,gpg gj  % 21.

_ USE , .. .

. IS8EOPE

- UNIT l  % .F 2 PIECES -- a "6 l si ~

g~

W. D* PGX GRADE GRAPHITE RODS W

Sc. 11,189 lbs.

y-48.23" X 47. 25"  % C" "

n ~

@ oys~s f h.4 $42,151 30 a TOTAL VALUE:

eb

22. COUNTRY OF ORIGIN.-

SOURCE MATERI AL DI@ '* ' 23. COUNTRY OF ORIGINrSNM Mb 24. COUNTRIES WHICH ATTACH o &

I * ~

WHERE ENRICHED OR FRODUCED SAFECUARDS (//Known)

U.S.A.

25. ADDITIONAL INFORMATION (Use esperece eev*i/a rf SEE ATTACHED q 8 Copy to PDR and ACC t \..I , g p'-

2 CRero i

8. The applicent eartifies thet this application le propered in conform 6ty with Title 10. Code of Federal Reputettons. end that allinformation in th appfleotten le serrect to the theet of his/her b .c .

2

7. A4JtHOR12ED OFFICIAL a. SiONATURE h.

U n SP m C ST m

.: .'^

The material will be used by the Japanese Atomic Energy Research Institute (Jaeri) as a fixed ieflector,for the Hendel T2 Reactor Core Structure Test Model. The project is being managed by Fuji Co. More specifically, the graphite will be used in the manufacture of thermal insulation parts in a high temperature gas cooled reactor which is currently under construction. This is similar to the reactor in Fort St. Uraine, Peach Bottom in the U.S. and is a multi-purpose reactor which wil supply energy to steel and chemical companies.

NRC licenses XMAT 0290 was issued January 20, 1984 and XMAT 0304 on October 3, 1984 for this same application.

s l'

i e

i ee E

.r: '

j t ' h IYh'M3 UNION CARBIDE CORPORATION {C 17 b[ -

1. i D'f'

• CARBON PRODUCTS DIVISION -e m e . .. cm. e-.-

'w[r O R M s[ itO t.x[

August 20, 1976 "UCAR" GRAPHITE TROPERTIES GRADE PGX Geheral - Molded; All Sizes; 0.76 mm (0.03") Maximum Grain Size.

Property- Std. Units Std.

(Room Tencerature) Units & Dev. Metric Avg. Dev.

Bulk Density lbs/ft 109.9 1.25 Mg/m 1.76 0.02 Specific Resistance 10 -ohn-in ja ohm-meter With Grain 4.85 0.60 12.32 1.52 Across Grain ,

5.40 0.70 13.72 1.78 Flexural Strength psi k Pa 2 With Grain ,1900 260 (kN/m ) 13100 1793 Across Grain 1800 250 12410 1724 Tensile Strength

• psi k Pa 2

? With Grain 1400 210 (kN/m ) 9655 1448 Across Crain 1350 150 9310 1034 Compressive Strength psi k Pa With Grain 5849 600 (kN/m ) 40335 4137 Across Grain 5899 1000 40680 6895 0

Young's Modulus 10 psi M Pa With Grain 1.10 0.10 (MN/m ) 7585 690 Across Crain 1.00 0.10 6895 690

~0 Coefficient of 10 /F 10-6 /C Thermal Expansion With Grain 1.22 0.09 2.20 0.17 Across Grain .

1.44 0.10 2.60 0.19 Thermal Conductivity Btu ft. W/m C With Grain br. ft' 0F 61 6.8 105 11.7 Across Grain 54 4.8 ,

93 8.4 Permeability Darcy's With Grain 0.031 0.033 Across Grain 0.034 0.025 Ash W/0 0.44 0.20 u Round Sample

.r. _.., . -

!8 APPENDIX 6

- , .a ~., ~.,. ,. a . - _.-~.a.- - . ~ . ~ - - . . , - . . . . . . . . . . . . . . .

> e,, n 2 s 5 nuo 3 m t_

l'niteil State.- lb jiartment of State

\~ ?:/-

IUnhincton. D.C. 20.i20 a

1P-BUREAU OF OCEANS AND INTERNATIONAL yps/86 ENVIRONMENTAL AND SCIENTIFIC AFFAIRS p@ ~

February 22, 1985 Mr. James R. Shea Director of International Programs United States Nuclear Regulatory Commission Bethesda, Maryland

Dear Mr. Shea:

I refer to the letter from youh office dated January 17, 1985, requesting Executive Branch views as to whether issuance of an export license in accordance with the application hereinafter described meets the applicable criteria in the Atomic Energy Act, as amended by the . Nuclear Non-Proliferation Act of 1978: -

NRC No. XMA19315 - Application by Union Carbide Corporation to authorize export to Japan of 5,076 kilograms of nuclear grade -

graphite valued at $42,151.30 for manufacture of parts for the IIendel high temperature gas reactor experimental test loop ,

currently under construction by the Japan Atomic Energy Research Institute.

It is the judgment of the Executive Branch that the export contemplated will not be inimical to the common defense and security of the United States, and that this export is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.

As an NPT party, Japan has committed itself to maintaining IAEA safeguards on all of its peaceful nuclear activities and has pledged not to produce or otherwise acquire any nuclear explosive device. It is therefore the judgment of the Executive Branch that Criteria (1) and (2) for exports of reactor components under Section 109 of the Atomic Energy Act, as amended, are met. The remaining criterion, agreement not to retransfer any U.S.-

supplied component without prior U.S. consent, has been satisfied by the receipt of an assurance letter from the Embassy of Japan, the subject of our letters to you dated October 20,1978 and March 13,1979.

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

Sincerely, ts M

. James B. Devi e

~ D ty As::Istant Secretary

' Copy to FDT. ammagt. 2 - 2 4. - 8 5~ _..

h, c m st. \ 2. j Ebb, W h___.._...

.e.w . . . _ -. .m :.m &

. mu,. - - ~c. wm,u.4 m~:- . a.. - .

lAh

• l RECEIVED

.. DEPARTM ENT OF STATE USNRO k-

.,* .. ...-c.- o e ::s:.-

n

% NMR 14 P4 :34 BUREAU OF OCEANS A0D INTERNATIONAL

' ENVIRONMENTAL AND SCIENTIFIC AFFAIRS '

OFFICE Or

. AI_(RNAiiONAL PROGRANs March 13, 1979 Mr. James R. Shea Director of International Programs United States Nuclear Regulatory Commission Room 6714 - MNBB "

Bethesda, Maryland '

Dear Mr. Shea:

I refer to my letter of October 20, 1978 transmitting a letter from the Embassy of Japan confirming that nuclear com-

_ ponents, specially designed and prepared for use in a nuclear facility, deuterium (including heavy water) and nuclear grade graphite, exported from the U.S. to Japan, would not be re-transferred beyond the jurisdiction of Japan without prior approval of the United States.

Enclosed for the information of the Commission is a copy-

+

of a letter dated February 28, 1979 from the Japanese Embassy,

' written under instructions of the Government of Japan, recon-

' firming that nuclear components, items and substances, as de-

' fined in Appendix A of 10 CF]t 110 published May 19, 1978, ex-ported to Japan from the United States, are subject to Article 10 A(3) of the Japan-U.S. Agreement for Cooperation which pro-vides that: "no material, including equipment and devices, transferred to the Government of Japan or authorized persons under'its jurisdiction pursuant to the said Agreement for.Co-operation shall be transferred beyond the jurisdiction of the Government of Japan without the prior consent of the U.S.A."

Sincerely, Ng ,l M*v9 Louis V. No enzo O f

Deputy Assistant Secretary f

4.

Enclosure:

As stated .,

i l

.x . . . .m.-,.+~ , c . , , 3

. ., . L.) # v

• c . .

~

EMBASSY OF JAPAN 2520 MASSACHUSLTTS AVENUE. N.W.

WASHINGTON, D.C. 20008' (202) 23A-226% .

February 28, 1979 Mr. Louis V. Nosenzo Deputy Assistant Secretary Bureau of Oceans and International Environmental and Scientific Affairs Department of State Washington, D.C. 20520

Dear Mr. Nosenzo:

With reference to your letter dated October 20, 1978, I should like to re-confirm, under the instructions of-my home governme,nt, that in accordance with Article 10 A(3) of the Agreement for Cooperation between the Government of Japan and the Government of the U.S.A. Concerning Civil Uses of Atomic Energy, no material, including equipment and devices, transferred to the Government of Japan or ~

authorized persons under its jurisdiction pursuant to the said Agreement for Cooperation shall be transferred beyonc the jurisdiction of the Government of Japan without the prior cc,sent of the U.S.A. In addition, I should like

-- - to inform you of the understanding of my home government that nuclear coaponents, items and substances as defined in Appendix A of 10. CFR 110 of the U.S.A., published on May 19, 1978, are subject to the said Agreement when they are transferred to the Government of Japan or to authorized persons under its jurisdiction. .,

Sincerley yo}zrs, J V '

K a u cr Suzuki

, s s s s m e. .

.. . . y s .

4I . ,.

DEPARTMENT OF STATE

. / '

wn- en- o c :em , g,yg -

. .I::C BUREAU OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIE.IC,.1FE4 IRS ..

w w v. i L a t.. :. Ly October 20, 1978

. g7L.H

~Mr. James R. Shea

'".7AI'L srcus Director of International Programs United States Nuclear Regulatory Commission Room 6714 - MNBB Bethesda, Maryland

Dear Mr. Shea:

~

Enclosed is a copy of a letter dated October 5, 1978 from the Embassy of Japan in answer to our letter of September 19, requesting confirmation that nuclear com-ponents specia'lly designed and prepared for use in a nu-clear facility, deuterium (including heavy water) and nu-clear grade graphite / exported from the U.S. to Japan, would not be retransferred beyond the jurisdiction of Japan without the prior approval of the United States.

In its response, the Government of Japan ccnfirms in -

accordance with Article 10 A (3) of the U.S.-Japan Agree-

~s ment for Cooperation, that no material including equipment and devices will be transferred beyond the jurisdiction of Japan without the prior consent of the United States.

We believe it is clear that the Government of Japan considers their October 5 l2tter a confirmation of the undert'aking sought in the U.S. request of September 19, that Japan will treat the components, items and substances referred to in the U.S. letter as constituting " material, including equipment and devices" transferred pursuant to the Agreement and thus subject to U.S. retransfers ap-proval. However, to remove any possibility of ambiguity in this regard, we have advised the Government of Japan that it is our understanding these components, items and substances will be exported to Japan pursuant to our agree-ment for cooperation.

Thus, it is the judgment of the Executive Branch that the third cricerion in Section 109 b. of the Nuclear Non-proliferation Act of 1978 is met.

It is also the view of the Executive Branch that the first two criteria of Section 109 b. of, the NNPA -- IAEA safeguards and no nuclear explosive,use -- are met by Japt.n's adherence to the NPT.

wasw . uwu ,

2-On the, basis,,of the above, it is the judgment of the Executive Branch that the issuance of export licenses for the export of these components, items and substances to Japan'will not be inimical to the common defense and secur-ity.

Therefore, it is the. view of the Executive Branch that, in the absence of a mat'erial change in circumstances, all statutory requirements are satisfied for export licens-ing of nuclear components, substances and items to Japan.

Sincerely, Sf Louis V. N senzo

/G4 '

Deputy Assistant Secretary 9

e I

-w ---, , , - . --y --egm --- - ,y,4- --

e -w e-e s-, - - - - - , ,e-- - - -- - - --~-,

. EMBASSY OF JAPAN 2520 MASSACHUSETTS AVENUE. N.W.

WASHINGTON, D.C. 20008

~

(202) 234 2266 October 5, 1978

~

Mr. Louis V.-Nosenzo l Deputy Assistant SecretaryBureau of Oceans and I '

and Scientific Affairs Department of State 20520 ,

Washington, D.C. .

Dear Mr. Nosenzo:

br With referebce to Mr. Hoyle's letterd dated Sept I should like to confirm to you,that, un in accordance er en 19, 1978, instructions from my home government, for Cooperation

~

f the with Article 10 A (3) of the Agreement materic' between the Government of Japan and the Gove U.S.A. concerning civil uses of atomic energy,U.S from the no

' ircluding equipment and devices, transferredd i r consent of the to Japan, shall be transferred beyonof the '

the U.S.A.

I Thank you for your cooperation in this matter.

Sincerely yours, -

p

. (P Kazuo SUZUKI First Secretary (Scientiff 6

r o

sammeoneses* esasu "8h88**

0