ML20215J084

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Responds to Encl Recipient Re Possible Transfer of DOE U Enrichment Enterprise to Private Sector.Nrc Preparing Technical Positions Re Requirements for U Enrichment Applications & Review Plan
ML20215J084
Person / Time
Issue date: 06/10/1987
From: Zech L
NRC COMMISSION (OCM)
To: Herrington J
ENERGY, DEPT. OF
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ML20215J086 List:
References
NUDOCS 8706240314
Download: ML20215J084 (2)


Text

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PM 24

,34 UNITED STATES NUCLEAR REGULATORY COMMISSION

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WASHINGTON, D. C. 20555

%*,..M June 10, 1987 CHAIRMAN The Honorable John S. Herrington Secretary of Energy Washington, D.C. 20545

Dear Mr. Secretary:

I am responding to your letter dated April 2, 1987 concerning the possible transfer of the Department of Energy's uranium enrichment enterprise to the private sector.

Under current law, any facility designed or used for the separation of the isotopes of uranium or plutonium requires 4 licensing by the U.S. Nuclear Regulatory Commission (NRC) if it is not within the purview of the U.S. Department of Energy (D0E).

Upon transfer to private ownership, the existing gaseous diffusion plants would need a license from the NRC.

The issues of paramount importance to the NRC in the licensing of the existing gaseous diffusion plants as well as new enrichment plants would be the protection of the health and safety of the public and assurance of common defense and security. Topics of particular importanc.e in our review of the existing gaseous diffusion plants would be the safeguards issues and chemical and radiological hazards resulting from severe accidents including natural phenomena. The operating history of the plants and all of DOE's own analyses would be helpful to such a review. The staff is preparing technical positions related to requirements ,

for uranium enrichment applications which may be useful to a prospective applicant seeking a license for the existing plants.

However, it is essential that any legislation which would transfer some or all of DOE's uranium enrichment facilities to the private sector address regulatory issues. If the facilities are to be subject to NRC licensing and regulation, then the "privatization" legislation may need to address such things as a grace period before the requirement to obtain an NRC license applies, the scope of NRC NEPA environmental review, the need for NRC antitrust review, and Price-Anderson coverage. I suggest

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that any "privatization" legislation which DOE might propose be carefully coordinated with NRC so that the nature and scope of NRC's regulatory obligation is fully understood. j 1

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2 With respect to applications for new uranium enrichment facilities, the NRC staff is preparing technical positions and a review plan. These will be available for public comment soon.

We will welcome DOE comments on this information.

Sincerely, I A, Lv.

Lando W. Ze , Jr.

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