ML20217K971
| ML20217K971 | |
| Person / Time | |
|---|---|
| Issue date: | 10/16/1997 |
| From: | Stoiber C NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-97-236, SECY-97-236-01, SECY-97-236-1, SECY-97-236-R, NUDOCS 9710300159 | |
| Download: ML20217K971 (16) | |
Text
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dato POLICY lSSUE (Notation Vote) 1 October 16, 1997 SECY-97-236 f.g,C:
The Commissioners Etomi Carlton R. Stoiber, director Office of International Programs SUBJECT PROPOSED RETRANSFER OF HIGH ENRICHED URANIUM (HEU) SCRAP FROM CANADA TO THE UK AND BACK TO CANADA FOR MEDICAL ISOTOPE PRO?UCTION l
AT THE NRU REACTOR EURPOSE:
I To obtain the Commission's approval of a proposed response to the Department of Energy (DOE).
BACKGROUND:
DOE has forwarded for NRC review a proposed subsequent arrangement (Attachment
- 1) for the transfer of 25 kilograms of uranium scrap, enriched to 93.15
)ercent in the isotope uranium-235 (U-235), from Atomic Energy of Canada, imited (AECL) in Chalk River, Canada, to the United Kingdom Atomic Energy Authority (UKAEA) in Dounreay, Scotland, for the purpose of recovering HEU which will then be returned to Canada within. 12-month period for use in AECL's NRU reactor as target material for the production of molybdenum-99 (Mo-99).
(The retransfers will take EURATOM Agreements for Cooperation.) place under the U.S.-Canada and U.S.-
In 1991, an almost identical transaction was submitted by DOE for NRC review and was approved. This earlier transaction was discussed and presented to the Commission in SECY-91-171 for the outbound retransfer, and SECY-91-350 for the return to Canada.
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. Subsequently, in 1992, additional restrictions were placed on HEU exports by the Schumer amendments to the Enargy Policy Act (Section 134 of the Atomic Energy Act).
These restrictions allow the Commission to issue a license for the export of HEU to be used as a fuel or target in a nuclear research or test reactor only if, in addition to any other requirement of the Atomic Energy Act, the Commission determines that (1) there is no alternative nuclear fuel or target enriched in the isoto)e U-235 to a lesser percent than that of the proposed export,11at can be used in that reactor; (2) the pro >osed recipient of that uranium has provided assurances t1at, whenever an alternative nuclear reactor fuel or target can be used in that reactor, it will use that alternative in lieu of highly enriched uranium; and (3) the United States Government is actively developing an alternative nuclear reactor fuel or target that can be used in that reactor.
The phrase " alternative nuclear reactor fuel or target" is defined to mean a fuel or target enriched to less than 20 percent in the isotope U-235. The phrase "can be used" is defined to mean that the fuel or target has been qualified by DOE's Reduced Enrichment Research and Test Reactor (RERTR)
Program, and use of the fuel or target will permit the large majority of ongoing and planned experiments and isotope production to be conducted in the reactor without a large percentage increase in the total cost of operating the reactor.
These restrictions have been incorporated in NRC's export licensing regulations at 10 CFR 110.42(a)(9).
The restrictions are also applied, as a matter of policy, to retransfers of HEU (vice direct exports) to assure that U.S. HEU is supplied on a consistent basts. A supplemental letter from DOE dated October 2,1997 provides an analysis of the current request and concludes that the Schumer requirements are met (Attachment 2).
DOE's sup)1emental letter refers to a recent exchange of diplomatic notes between tie U.S. and Canada agreeing to use alternative LEU targets in lieu of HEU targets once the LEU alternative is fully developed and available.
DOE also refers to its commitment in 1995 "to fully fund the advanced fuel development program until its objectives are met" and advises us that the Department, through the Argonne National Laboratory, continues to actively develop the alternative LEU target.
Copies of the U.S.-Canada diplomatic notes are at Attachment 3.
Department of Defense views are provided in a September 26, 1997, memorandum to DOE (Attachment 4). The accompanying D00 analysis addresses transportation and other aspects of the transaction in general terms from which may be inferred
-3 D00's view, required by Section 133 of the Atomic Energy Act, on the adequacy of the physical protection of the HEU transfers to deter theft, sabotage and other acts of international terrorism.
Q11CUSSION:
The HEU being transferred from Canada to the UK is in the form of scra) material.
The majority of this scrap was generated in Canada during tie production of HEU targets for the production of medical isotopes; the remainder is from fuel fabrication scrap. The processing will take place in a scrap recovery line at Dounreay's fuel fabrication facility.
Canada has been participating in the U.S.-sponsored RERTR Program to replace HEU with Low-Enriched Uranium (LEU) ion.
as fuel for research reactors and as targets for needical isotope product Currently no LEU targets have been certified to replace HEU targets to produce the Mo-99 medical isotope. The Canadian Government has been working closely with DOE on the development of LEU targets. As noted above, DOE has committed funding to develop such LEU targets and the Canadian Government has agreed to use LIV targets once they are fully developed and made available.
The NRC staff believes these actions and commitments satisfy the restrictions of the Schumer amendments.
The U.S. has previously granted consent, in the U.S-EURATOM Agreement, for the i
Dounreay site to process HEU.
EURATOM will safeguard this nuclear material while it is at Dounreay.
The NRC threat assessment staff has reviewed the proposed retransfers of Category-! quantity of nuclear material in this case and do not object to the subsequent arrangement being granted.
SIDE NOTE:
The Office of International Programs export licensing staff expects to receive at least one license application in the near future requesting authority to export additional HEU from the U.S. to Canada for AECL's NRU reactor, also for Mo-99 production. Any such case will come to the Commission for approval as provided in 10 CFR Part 110.40(b)(2).
COORDINATION:
The EDO concurs in this paper.
OGC has no legal objection.
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4-RECOMMENDATION:
That the Commission approve the response to DOE at Attachment 5, indicating no objection to the proposed authorization.!
hk Carlton R. Stoiber, Director Office of International Programs Attachments:
1.
FAX fm T. Lee dtd. 9/24/97 2.-
Ltr fm C. Fitzgerald dtd. 10 Exchange o/2/97f Notes dtd 10/6/97 3.
4, Ltr to E. Fei fm D. Johnson dtd 9/26/97 5.
Ltr fm R. Hauber to C. Fitzgerald l
Commissioners' comments or consene. should be provided directly to the Office of the Secretary by COB Monday, October 20, 1997.
Commission Staff Office comments, if any, should be submitted to the Commissioners NLT Monday, October 20. 1997, with an infromation 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.
DTSTRIBUTION:
Commissioners OGC OIG OPA OIP CIO CFO EDO SECY lJ
2025862323 09/24/97 WID 12:06 FAI 202s662323 NN-42 Qb001 1]NITED STATES GOVERNMENT DEPARTMENT OF ENERGY memorandum Date:
September 24,1997 From:
Terri T. Lee, NN-42
Subject:
Request for Subsequent Arrangement Under NNPA of1978 To:
Distribution Attached for your review is a draft Federal Register notice concerning a proposed subsequent arrangement. This req 2est is not unprecedented as you will see in the attached fonner case that was approved and published in the June 19,1991 Federal Register notice. Also attached is a copy of the Canadian leiter stating the purpose and details of the proposed transaction and an end use statement from the Ucited Kingdom Atomic Energy Authority specifying the intent to retum the recovered HEU to AECL Chalk River, Canada within a twelve month period.
I would appreciate your response to this request as soon as pos:ible. If you have any questions, please contact me at (202) 586 8945 or fax me at (202) 586-6789/2323. Thank you for your attention.
Distribution:
Mr. Joseph Chuckla hir. MichaelJohnson Office of Technology and Policy Analysis OSD/ISP/ Negotiations and Implementation I
Department of Commerce Department of Defense OTPA Room 4069A 2500 Defense Pentagon Washmgton, D.C. 20230 Washington, D.C. 203012600 Fax:(202) 482-4145 Tel:(703)693 8916 Fax:(703) 614-4365 Mr. Robin DeLabans LTC Jonathan Fox PM'NE Defense specialWeapons Agency Department of State 6801 Telegraph Road Washington, D.C. 20520 Alexandria,VA 22310 3398 Tel:(202) 647 3978 Teh (703) 325 7358 Fax:(202) 647 0775 Fax:(703) 325 2953 Mr. Ronald D.11auber Mr. Michael D. Rosenthal Office ofIntemational Programs Arms Control and Disarmament Agency Nuclear Regulatory Commission NWC/INA, Room 4678 Washington, D.C. 20555 Washington, D.C. 20555 Tch (301) 415 2344 Teh (202) 647 2832 (Mark Goodman)
Fax-(301)415 2395 Fax:(202) 736-4336 DUE TO URGENCY OF THIS RDNEST, PLEASE PRNIDE YOUR RESPONSE BY COB TOCRRN, TIRJRSDAY,IF AT ALL POSSIBLE.
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2025862323 09/24/97 WED 12:06 FAI 2028862323 NN-42 0 002 BILLING COE 6450-01-P D" "C..
DEPARTMENT OF ENERGY Office of Amts Control and Nonproliferation Policy eni PROPOSED SUBSEQUENT ARRANGEMENT ma m AGENCY:
DEPARTMENT OF ENERGY h
ACTION:
SUBSEQUENT ARRANGEMENT tm
SUMMARY
- Pursuant to Section 131 of the Atomic Energy Act of1954, as amended (42 "g
U.S.C. 2160), notice is hereby given of a proposed " subsequent arrangement" under the Agreement for Cooperation in the Peaceful Uses of Nuclear Energy Between the United States of America and the European Atomic Energy Community (EURATOM) and the one 4
Agreement for Cooperation Between the Govemment of the United States of America and the Govemment of Canada Conceming the Civil Uses of Atomic Energy.
'Du subsequent amu,gement to be carried out under the above mentioned agreements in nives approval of the following: RTD/EU(CA) 15 for the transfer of 25,000 grams of omt' oriched uranium fuel fabrication scrap, containing 23,280 grams of the isotope U 235 (93.15 percent enrichment) from AECL in Chalk River, Canada, to UKAEA in Dounreay, United Kingdom, for the purpose of recovering high enriched uranium for retum to Canada within a,,bg twelve month period for use as target material for the production of Molybdenum 99.
ove' In accordance with Section 131 of the Atomic Energy Act of1954, as amended,it has been ined that this subsequent arrangement will not be inimical to the common defense and 1
This subsequent arrangement will take effect no sooner than fiReen days after the date of oce publication of this notice.
For the Department of Energy msama.
urisen Cherie P. Fitzgerald Director one International Policy and Analysis Division am Office of Arms Control and Nonproliferation wrxa,sa tm t w ri.snt m OFFICML FRE COPY
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Department of Energy Washington, DC 20585 october 2, 1997 Mr. Ronald D. liauber Director Nonproliferation, Exports and Multilateral Relations Office ofIntemational Programs United State Nuclear Regulatory Conunission Washington, DC 20555
Dear Mr. Hauber:
This memo is in reference to the proposed subsequent arrangement RTD/EU(CA) 15 regarding the request for the transfer of 25 kilograms of high enriched uranium (HEU) fuel fabrication scrap from Atomic Energy of Canada (AECL)in Chalk River Canada, to UKAEA in Dounreay, United Kingdom. The Office of Arms Control and Nonproliferation has determined from its l
review that the retransfer does not violate provisions in the Schumer Amendment. This determination was reached based on the facts that:
I The United States Govenunent and the Covemment of Canada recently exchanged diplomstic notes agreeing to use the alternative low enriched uranium target (LEU) in lieu of HEU cnce the alternative LEU target is fully developed and made available. Assunmces were also given by both sides for the export of highly enriched uranium from the U.S. for the production of medical isotopes in the absence of a qualified LEU target.
The Department of Energy made the commitment in 1995 "to fully fund the de::=d fuel development piogram until its objectives are met." The Department, through the Argo: ne National Laboratory, continues to actively develop the alternative LEU target.
It is the Department's belief that with the commitments stated above: the written assurance from the United Kingdom on the peaceful end use and intent to return the recovered HEU material to Canada within twelve months; and Canada's written assurance that the retumed HEU scrap does not increase its HEU inventory and will be used for Molybdenum 99 production, the request for retransfer should not pose any doubt and therefore should be approved by the Nuclear Regulatory Commission (NRC), The Department has received approval from the interagency (Departments of State, Commerce, Defense, and the Arms Control and Disarmament Agency) and is currently awaiting tlw NRC's prompt consent.
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I would greatly appreciate NRC's expeditious and favorable response to this urgent matter.
Sincerely,
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Cherie P. Fitzgerald Director International Policy and Analysis Division Oflice of Arms Control and Nonproliferation l
202 647 0775 OCT-06-1997 09:00 STATE IEPT-FME
-PEG 647 0773 P.01/05 Urdted States Departmet t of State khhwton,1).C. 3 520 SUREAU OF POLITICAL-MILITARY AFFAIRS OFFICE OF NUCLEAR ENERGY AFFAIRS October 6,1997 TO:
NRC - RON HAUSER PHONE: 301415 2344 FAX:
301 415 2395 FROM: PM/NE ROBIN DELABARRE PHONE: 202 647 3978 FAX:
202 647 0775
SUBJECT:
U.S. CANADA EXCHANGE OF NOTES CONFlRMING THAT CANADA WOULD USE LEU TO PRODUCE MO-99 WHEN SATISFACTORY LEU ALTERNATIVE TO HEU BECOMES AVAILABLE As requested, transmitted are copies of the referenced exchange of notes.
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The Department of State proposes the following i
understanding regarding assurances - pursuant to the United States Atomic Energy Act, Chapter 11, Section _ 134, with
. respect to the export of highly enriched uranium (HEU) from i
the United States of America for the production of medical isotopes.
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-The Government of the United' States and the Government
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of-Canada agree that who.never a low enriched uranium (LEU) target has been qualified by the relevant authorities and
-does not result in m-large percentage increase in the total cost of operating a reactor, including necessary_ associated-equipment',
for the production and processing of medical isotopes, such an alternative LEU target will be used in that reactor in_ lieu of_a.high enriched = uranium (HEU) target-after required equipment has been installed-and the neccesary licenses have been obtained.
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The Government of the United States and the Government of- ' Canada -intend to consult as appropriate, and ht the request - of either party, on issues, -such as technical,
' environmental,
-regulatory' and economic considerations, relevant ^to the..use of a LEU target, and on-issues related to the" supply and pricing of uranium for targets for medical
202 647 0775 OCT *t$-1997 09309 5 TATE r;PT-PMetC 202 647 0775 P.C3/05 2
isotope producticas.
The object of these consultations will be to ensure that there is a complete understanding of the range of issues associated with the use of uranium targets for medical isntope production er ao to provide the basis for a determination whether an alternative LEU target can be used in that particLlar reactor for the production of medical isotopes.
The Department of State requests that the Embassy of Canada confirm that this understanding is shared by the Government of Canada.
Department of State, Washington, September 4,
1997 i
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2%7 647 0775 OCT-06-8997 09t09 STATE IEPT-PME 803 647 0775 P.04/05 9
Ennabian pubassg pahassabe hu flanska Mota No. 004 The Embassy of Canada confirms the following understanding set out in the Note of September 4, 1977 from the Department of State regarding assurances pursuant to the United states Atomic Energy Act, Chapter 11, section 134, with respect to the. export of highly enriched uranium
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-(HEU) from the United Statec of America for the production of medical isotopes, which reads as follows:
4 "The Government of the United States and the Government of Canada agree that whenever a low enriched uranium (LEU) target has been qualified by the reAevant authorities and does not result in a large percentage increase in the total cost of operating a reactor, including necessary associated equipment, for the production and processing of medical isotopes, such an alternative LEU target will be used in that reactor in lieu of a high enriched uranium (REU) target after required equipment has been installed and the necessary licenses have been obtained.
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233 647 075 OCT-06-1997 09109 STATE IEPT-PWIG 202 647 0775 P.05/05
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'The Government of the United states and the Government of Canada intend to consult as 1
appropriate, and at the request of either party, on issues, such as technical, environmental, regulatory and economic considerations, relevant to the use of a LEU target, and on issues related to the supply and pricing of uranium for targets for medical isotope production.
The object of l
these consultations will be to ensure that thera is a complete understanding of the range of issues associated with the use of uranium targets for medical isotope production so as to provide the basis for a determination whether an alternative LEU target can be used in that particular reactor for the production of medical isotopes."
Thu Embassy of Canada confirms that this under-standing is shared by the Government of Canada.
W3Shington, D.C.,
September 4, 1997 TOTAL P.05
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OFFICE CF TH3 ASClOTANT SECRETARY OF DEFENSE 3000 DEFENSE PENTAGON WASHINGTON. DC 70301 6 sE TA, % %,
Mr. Edward T. Fei Deputy Director 2 b SEP 1997 International Policy and Analysis Division Office of Arms Control and Nonproliferation Policy l
U.S. Department of Energy Washington, D.C.
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Dear Mr. Fel:
The Department of Defense has completed its review, pursuant to Section 131 of the Atomic Energy Act, of the proposed subsequent arrangement for the transfer from the Government of Canada to EURATOM of 25,000 grams of enriched uranium containing 23,280 grams of the isotope U"$
(at 93.15% enrichment) in fuel fabrication scrap from AECL/ Chalk River, Canada to UKAEA/Dounreay, UK where the HEU will be recovered and returned to Canada within twelve months for use a target material Molybdenum 99 production.
Based on the review of the information presented in the doe package, DoD will have no objections to the approval by the Secretary of Energy of this subsequent arrangement.
Sincerely, Don M. Johnson Deputy Director O
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MENORANDUM FOR OSD/ISP/N&T (MR. MICHAF.L JoIIlf80N)
SUBJECT:
Review or Proposed subsequent 'Arrabgennent Pursuant to Sec.131 of the Atcraic Ruergy Act (42 U.5 C. Seq.
2160), the Department of Mneryy has requested ' consultative review of a proposed subsequent arrangenent concluded under the purview of the Nuclear Non Proli' Iter %titfn--Att of '1958v-.This -aseaus is provided in accordance with the provisions of Dswh Instruction (which governs the agency response to'such requests) 5100.40 details the results of our technic 41 ass <aameent to the Office, and Secretary of Defense.
of The Unitud States of Anerica, the Government. of Canada a$d the tu opean Atomic Energy Community (MURATCH) are partien to Cooperative Agrowns.nte Governing Peaceful Civil Uses of Atomic Roergy.
Canada and EURATOM (by a constituent sneanber, the United Kingdom) now propcse, and the United States is inforsed of the intent, to transfer 25,000 grams of enriched urantuas fuel fabrication scrap cont
- hn; 23,280 grama of the isotope 0,-235 (93.15 % enrichment), frum ABCL/ Chalk River;, Canada to UKAEA/Dounreay, United Kingdous, where high enr$ched uranium will bo recovered nud returned to Canada within a, twelve month period.
for use as target material for the production of Molybdianum 99.
That this request for subsequent arrangement deals with'a not insubstantial amount of HEU is not, in and of itself, a grounds for denial under the NNPA.- In fact and in practice, sufficient precedent exists to approve this transaction if all other applicable legal and regulatory requirements are snet; RTD/BU(CA)-
10, 17 June 1991 (FR Doc. 91-1471) presented the exact sapus transactjon and parties (25 kilograms of 93.15% enriched uranium scrap transferred between AECL/ Chalk River and UKARA/Dounreay for recovery and return to Canada), and was found not to be inistical to the coturn defense and security.
The request for a correspondence from he Goverunnents of Canada and the Unitedroval or this tranhaction is Kingdom.
We Canadian Atomic Energy control Board has confirmed that this recovered HEU will be used for peaceful.unds, the provision of required target material for inactical isotope Holybdenuss 99 production through calendar year 2000.
Canada also indicates that the proposed arrangument does not increase that a
state's BEU inventory.
The United Kingdcug Atcenic Energy Authority has issued an End Use Statement confirming the casential details of the proposed arrangement *,
Tbo United Kingdom intther represents that all operations associated.with this recovery process are subject to EURA' ION and IAEA Safeguards.
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Transportation aspects of the transaction are r~epresented to coatone to those national and internationa\\ regulations 1n force at the time of transport.
Dsun technical-assessement of the contemplat'ed transactima concludes that it will not result in a significant inertmase of the risk of nucleat weapons technology proliferation, and takes place under conditions that will insure timely earning to the,
United states of any diversion to a non.muclear state.for use in 3
the development of a nuclear explosive devicei.
Both cuanda.and the United Kingdom exe long time, reliable atomic pesar partners with a long history of ocepliance with the strictures of the i
goverulag cooperative Agreeseentsr- %e enrichment level of the,,,,,,,
notorial subject to this contemplated t.ransactica'is appropriata..
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for the proposed penetful end use of4 medical isotope production.
Se amount of the proposed transfer.is appropriate for the smalti-4 4-year isotope requirement estimate,-and the process itself is well j
within the norm of alloemble civil atoanic emergy operations..
j Mhile there is always concern where the transter of REU is i
involved, the 1991 precedent; the partits involved and t. heir l
representations; and the unreanarkable opergtional history of past similar transactions are persuasive.
Amoordingly, approval of proposed subsequent arrangement RtD/EU(CA)-15 woul t not be
- inimical to the common defense and security.
l h ank you.for referral of this matter'to our office for review and consultation.
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i Ms. Cherie P. Fitzgerald Director International Policy and Analysis Division, NN 42
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Office of Arms Control and Nonproliferation Department of Energy i
Washington, D.C. 20585
Dear Ms. Fitzgerald:
The_ Nuclear Regulatory Commission has reviewed and does not object to the i
Department of Energy entering into a subsequent arrangement for the transfer of.
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- 25 kilograms of high enriched uranium, enriched to 93.15 percent in the isotope
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uranium.235, froin Canada to the United Kingdom for processing and return to Canada for use at the NRU research reactor as target material for the production of i
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medical isotopes (RTD/EU(CA) 15).
l Sincerely, 4
Ronald D. Hauber, Director ~
NonproFferation, Exports and Multilmeral Relations Office of International Programs.
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