ML20235S739

Changes to Safeguards Reporting Requirements, 10CFR70,72, 73 & 74 Final Rule.Amends Clarify Reporting Requirements for NRC Licensees & Will Improve NRC Safeguards Event Data Base by Requiring More Uniform Safeguards Event Repts

ML20235S739
Person / Time
Issue date:	05/21/1987
From:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML19306B511	List: ML20235S701 ML20235S739 ML20235S767
References
FRN-50FR34708, RULE-PR-73 AB46-2-02, AB46-2-2, NUDOCS 8707210762
Download: ML20235S739 (35)

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A84WL NUCLEAR REGULATORY CCMMISSION 10 CFR Parts 70, 72, 73, and 74 Changes to Safeguards Reporting Requirements AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

SUMMARY

The Nuclear Regulatory Commission (NRC) is amending its regula-tions for the reporting of safeguards events. These amendments clarify the reporting requirements for NRC licensees and will improve the NRC safeguards event data base by requiring more tniform safeguards event reports.

Licensees who are affected include power and non power reac-tors, fuel cycle facilities, and transporters, importers, and exporters of special nuclear material. The NRC uses the reported information to assure safety during safeguards-related emergencies and to identify and characterize generic and facility specific precursors that can be utilized to preempt duplicative or similar events in the future. The benefits derived from tnis action are the elimination of unnecessary reports with-out degradation to safeguards, the extension of the period for written report submittals and an improved data analysis system to provide industry feedback for improving safeguards systems.

EFFECTIVE DATE:

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FOR FURTHER INFORMATION CONTACT: Loren Bush, Office of Nuclear Reactor l t

Regulation, or Priscilla A. Dwyer, Office of Nuclear Material . Safety and l

Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Telephone (301)492-8080, or (301)427-4773, respectively.

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i SUPPLEMENTARY INFORMATION:

Background *

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10 CFR 73.71 establishes an event reporting program to Jinform the -

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Commission of safeguards events to permit timely and appropriate response f to incidents. Safeguards events include actual or attempted theft of special nuclear material (SNM); actual or attempted acts or events which interrupt normal operatiens at power reactors due to unauthorized use of $

or tampering with machinery, compocents, or controls; certain threats made against facilities possessing SNM; and safeguards system failures .

impacting the effectiveness of the system. The data from this reporting program further allows the Commission to identify and characterize generic j i

and facility specific precursors to safeguards events. Since the issuance of 10 CFR 73.71 (47 FR 11511), the NRC staff has found that the require- j ments are frequently misinterpreted, that written follow-up reports sub-(

mitted pursuant to the regulation lack uniformity, and that within these reports insufficient data is reported for NRC analysi- I For these reasons, on August 27, 1985, the NRC published proposed i amencments in the Federal Register (50 FR 34708) to clarify and simplify I

the requirements of 10 CFR 73.71; conforming amendments to 10 CFR 70.52, 72.52, 73.67, and 74.71 were also proposed at that time. The comment period which was to have ended on November 27, 1985 was extended to December 31, 1985 to permit sufficient time for review of companion  :

guidance issued after the proposed rule publication.

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Summary of Public Comment l

Comments were received from twenty-six respondents comprised of power j l

reactor licensees, one fuel processing licensee, three industry groups and one private citizen. Copies of comment letters are available for.

public inspection and copying for a fee at the NRC Public Document Room at 1717 H Street NW., Washington, DC.

The proposed amendments have_been modified in response to comments' received, as appropriate, and are being published in final form, to become -

effective 120 days after publication of this notice. A summary of the public comments, along with their resolution, follows.

The comments have.

been placed in the following categories:

• 1. Safeguards Log *

2. Reporting of Interruption of Normal Operations at Power Reactors

3. Reporting of Unauthorized Entry Through Required Barrier 4 Administrative Issues .

5. Clarifications Needed

6. Miscellaneous Issues

1. Safeguards Log. The majority of respondents commented on some aspect of the safeguards log. These comments have been divided into the 1

following issues that the respondents raised: '

a. I'. ems to be Logged

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b. Maintenance and Submittal of Stand-Alone Log Additional Discussion of Burden Imposed by Log I l

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(a) Items to be Logoed. Respondents indicated that the provision to log any other failure of a safeguards system ". .not included in para-graph II(a)...if the failure degrades the effectiveness of the system..."

would require the logging of a great deal of ins.ignificant data. Respon-dents suggested that unless tht. provision was made clearer, substantial disagreement could exist between licensees and NRC inspectors over what items are required to be logged. The provision may be subject to broad interpretation because of its open ended nature. For this reason this -

provision has been revised to read: "Any other threatened,.ittempted, or committed act not previously defined in Appendix G with the potential for reducing the effectiveness of the safeguards system below that committed to in a licensed physical security or contingency plan or the actual con-dition of such reduction in effectiveness." The supporting guidance for the rule has been revised accordingly in respo me to these revisions.

(b) Maintenance and Submittal of Stand-Alone Log. The majority of commenters including two utility groups indicated that the maintenance and submittal of a stand alone log was a large administrative birden on the licensee implemented for the convenience of the NRC. The recommenda-tion was nsade that this requirement be deleted in its entirety. Justifi-

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cation for this recommendation included the opinion that the events to be logged are insignificant and their logging will not increase safeguards  !

effectiveness, submittal of the log will require increased review of the log by licensee management to assure that events required to be logged are in fact logged, and records of the events to be logged are presently I maintained onsite and readily available for NRC inspection.

In response to these comments, it is believed this provision has been subject to much misinterpretation. The proposed reporting and 4

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recordkeeping requirements are intended to keep NRC informed concerning the degradation / failure or attempted / actual penetration of each licensee's physical security system as well as credible threats made against the licensee'.s facility. NRC staff intends to use the reported / recorded safeguards information to assure that appropriate action is taken by the licensee to address physical security degradation / failure and/or threats against the facility. Ft,rther, such information is used to identify and-characterize generic and *acility specific precursor information that '

could be utilized to preempt duplicative or similar events in the future.

These considerations support the need for the reporting of these types of events. Regarding the maintenance of a stand-alone log, it is noted that this is not a new requirement and that under the previous 10 CFR 73.71(c),

licensees were required to maintain a separate log 13 record events reportable under S 73.71. Furthermore, examples of the type of events other than those required by 10 CFR 73.71(c) that need be " recorded" under the previous regulation are identified in Regulatory Guide 5.62, Reporting of Safeguards Events. (Copies of this Ragulatory Guide are available for inspection or copying for a fee at 1717 H Street, NW. , Washington, DC.)

Comparison of this information with the events to be logged under the pro-posed regulation indicates an overall reduction in the burden to licensees resulting from events to be reported. This is based on the fact that the f

majority of events previously required to be reported within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> (with a follow up written report) have been picked up as log entries under i the revised regulation. As a log entry, the follow-up written report need not be submitted, substantially reducing the overall burden. Some com-menters interpreted the increased number of examples in the supporting l

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guidance-for the proposed rule as meaning more events were required to be f

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reported. The staff notes at this time that the examples in the original regulatory guide were never intended to be ell-inclusive and that the addit,ional examples have been provided to aid the licensee in understand- '

ing the intent of the regulation. Commenters also indicated that not all events required to be ingged under the present requirement are logged in one log, but a number of logs, i.e., maintenance log, alarm station log,

• etc. It is the opinion of these commenters that revising their procedures -

p to maintain one log, as opposed to multiple logs, will greatly increase their burden. It is anticipateri that the revised regulation will reduce the burden to licentees. Accordingly, no revision has been made to the revised rule in the area of maintenance of a stand-alone log. I Regarding the submittal of the stand-alone log to the NRC requiring additional review time by licensee management, commenters are reminded

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that the requirement to maintain a log, regardleas of its submittal to the NRC, carries with it the requirement for correct and accurate entries.

The concern over review for accuracy associated with the act of submit-ting the log to the NRC should also be applied to the maintenance of a 1 l

log onsite for review by inspectors. Hence, with respect to review time, there is no difference, from a regulatory standpoint, in the level of i burden imposed between a log maintained onsite versus one submitted to i

-l the NRC. It is noted that the log submitted to the NRC does. net have to be typewritten as long as it is legible. The supporting guidance for the rule has been revised to reflect this and to include examples of sample log entries for clarification regarding length and content.

Finally, regarding the comment that the log need not be Jubmitted to NRC Headquarters because records are available for onsite inspection, the l

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I staff believes that with the justification of a stand-alone log estab-lished, the onerous nature of the log submittal to the NRC, as noted in 3

comments, is greatly lessened. In review, this is based upon no require-1 ment to submit a typed or original log (xeroxed is acceptable as long as I I

it is legible) and no additional requirement imposed on the accuracy of a I

log submitted to the NRC versus one maintained onsite. '

(c) Additional Discussion of Burden Imoosed by Log. As previously discussed, the overall burden on licensees for the reporting / logging of -

safeguards events is in fact reduced by the proposed requirement. However, based upon the number of comments received on this issue,- the Regulatory Analysis for this rulemaking has been thoroughly reviewed and revised, as appropriate, to assure that respondents' concerns have been considered.

2. Reporting of Interruption of Normal Operations At Power Reactors.

The proposed regulation under SS 73.71(b) and I(a)(3) of Appendix G to Part 73 requires that actual or attempted acts or events which cause or could cause interruption of normal operation of a licensed nuclear power reactor through the unauthorized use of its machinery, ccmponents, or controls be reported within one hour to the NRC. Various comments were received from respondents on this issue. The majority of comments indi-cated that some clarification of the provision is needed. Specific suggestions included limiting the provision to deliberate, intentional, or malicious acts and focusing the provision on an actual act of sabotage rather than interruption of normal operation. A few comments indicated that the interruption of normal operation should not be considered a safeguards event and that such events are already reportable under Part 50 requirements. Finally, specific definitions for the terms

" tampering" and " interruption of normal operation" were requested.

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The inclusion of this provision within the reporting requirements for safeguards events was prompted by amendments in 1981 to the Atomic Energy Act of 1954, as amended, (the Act). At that time a new subsection (Section 236b) was added which subjects to criminal penalty any person who intent'ionally or willfully causes or 2ttempts to cause an interrup-tion of the normal operation of specified nuclear facilities through the 4

unauthorized use of or tampering with the machinery, components, or controls for such facilities. The Federal Bureau of Investigation (FBI), -

as the Federal agency charged with the criminal investigation of sabotage at nuclear reactors, has revised its internal policy on the definition of sabotage to be consistent with the Act. The revision to 10 CFR 73.71 is necessary to bring NRC regulations into line with the Act. Because the question of intent cannot normally be determined in a one hour time frame, the term " willfully" and " intentionally" are not included in the reporting requirements.

A proper application of the term " interruption of normal operations" will put the reporting of these events in proper perspective. The legis-lative history for the aforementioned amendments to the Act states that the term refers to the cessation of actual production, utilization, or i

storage operations which, if accomplished, would result in substantial economic harm or cost to the licensee. For the purpose of this rulemaking, l

this term will be used only to refer to utilization operations. The term )

sabotage is not specifically used within the regulation to assure that the actual act is reported while allowing the FBI to investigate whether a '

violation of law has occurred. In addition, the word " tampering", when i

4 used in conjune, tion with this reporting requirement only, means altering for improper purposes or in an improper manner. It is noted that all terms a

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or phrases clarified as a result of comment analysis for the proposed rule are ircluded in a glossary added to the supporting guidance for this rule, Regulatory Guide 5.62, " Reporting of Safeguards Events," Rev. 1. Finally regarding duplication of reporting with Part 50 requirements, the revi-sions to 10 CFR 73.71 explicitly state that duplicate reports are not required for events that are also reportable under 10 CFR. 50.72 and 50.73.

3. Reporting of Unauthorized Entry Throuch a Recuired Barrier.

SS 73.71(b)(1) and I(c) of Appendix G to Part 73 of the proposed regula- -

tion required any unauthorized entry through a required barrier. (whether or not the event is properly compensated) to be reported to the NRC within one hour of discovery. Comments on this issue questioned the need for reporting of all unauthorized entries especially those by authorized indi-viduals and indicated that unauthorized entries due to procedural or 1

unintentional errors need not be rer.orted especially when the event is oroperly compensated. Specific definitions for the terms " unauthorized entry" and " required barriers" were requested.

The staff agrees in part with these comments and recognizes the l

fact that some unauthorized entries through a required barrier may not involve malevolent intent particularly those involving " tailgating" by individuals into areas to which they are authorized unescorted access.

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Conversely, however, the staff believes 1t prudent and appropriate that j l malevolent intent be assumed if an individual makes an actual entry into '

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l an area to which he or she is not authorized unescorted access. For these reasons, this provision has been revised to require one-hour reporting of: "Any actual entry of an unauthorized person into a protected area, a material access area, controlled access area, vital I area, or transport." An unauthorized person is defined as an unescorted 9

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individual in an area to which the individual is not granted unescorted access.

All other acts or events involving invalid or incorrect entry procedures should be logged. To clarify this issue,~ additional pertinent examples have been added to the rule's supporting guidance. In addition, .

r the intent of proposing to require the reporting'of any unauthorized entry th' rough a required barrier was also to require the reporting of the introduction or attempted introduction of contraband i.nto the facility.

While SI(a) of Appendi,x G could also be cited as requiring the reporting '

of such an event, the staff has added a' separate provision to make it

. clear such events are required to. be reported within one hour.

4. Administrative Issues. The proposed regulation required the use .I of the Licensee Event Report (LER) form, NRC Forn 366, for the submittal of follow-up written reports by power reactor licensees. Public comment, including the comment of one utility group, identified problems with the "

use of these forms and recommended the use of letter format for' report submittal as required for all but power reactor licensees. Commenters opposed the use of the form by noting that the form was prepared for the i

reporting of safety events under Part 50 requirements and, hence, did not .

quite " fit" the planned usage under'10 CFR 73.71. From a philosophical i

standpoint, commenters felt the use of a common form blurred.the important distinction between safety and safeguards. Tne purpose in requiring the l use of this common form was to simp 14fy report submittal. It is believed i I

that the form has been designed with enough flexibility to accommodate  !

i the reporting of both safety and safeguards events. Furthermore, use of

.i a common form will simplify administrative procedures. For these reasons, no change has been made to the regulation regarding use of the LER form. I 10

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i However, guidance on use of the form by power reactor licensees for the reporting of safeguards events has been added to the rule's supporting guidance.

A few comments were received which requested the one-hour reporting requirement be extended to 4 or 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> and the requirement to log an event within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of its discovery be extended to 72 hours8.333333e-4 days <br />0.02 hours <br />1.190476e-4 weeks <br />2.7396e-5 months <br />. No revi-sion to the proposed rule has been made in response to these comments.

. In the case of extending the one hour limit, the proposed rule represents -

appropriate revisions to the present requirement that assure only those events requiring a one-hour report are in fact required to be' reported within one hour. In the case of extending the 24-hour limit, a 24-hour period to document an event in a log is more than sufficient time atd already represents a relaxation over immediate logging.

Also in the area of reporting periods, commenters, including one utility group, commented that the initiation of the time period for report-ing should be tied to discovery by a member of the se'curity organization, not just by any licensee employee, and that the security organization should make the determination that a safeguards event has occurred, again, not just any employee. The staff agrees that the determination for report-ing an event should be made by onsite security management or equivalent.

This information has been added to the rule's supporting guidance. It is believed, however, that the discovery of an event should not be limited to discovery by a member of the security organization. All regular site employees should receive training by the security organization to foster I an aw.reness of site security. In this regard, site employees should -be briefed on their responsibility to immediately notify site security of l l

safeguards anomalies. The staff, therefore, has made no revision to the proposed regulation in response to this particular comment.

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Commenters, including one utility group, requested that'the required record retention period of three years be revised downward to~one year.

In this regard, there is an ongoing NRC rulemaking which will standardize all record retention periods to 3 years, 5 years, 10~ years, or life in-order to ease the burden on affected licensees who are subject to diverse .

reporting and recordkeeping requirements. The three ye'ar period. required in 10 CFR 73.71 is consistent with this policy. As this policy evolves',

any revisions to the standardized retention periods would be reflected in- ,

a. conforming amendment to S 73.71.

Respondents further expressed the view that immediate reports should be made to the appropriate NRC Regional Office, not the Operations Center and that the procedure for revising written reports, i.e., complete report-resubmittal, was overburdensome and unnecessary. Justification for chang-ing the designated report recipient to the Region included the fact that immediate response is provided by the Region, not NRC Headquarters, and that current practice is to notify a Regional Office during day-time work duty hours and to notify the Operations Center during night off-duty hours.

The NRC purpose in requiring reports to be made-to the Operations

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Center, as required under present S 73.71 requirements, is to assure safety through appropriate action taken in response to emergencies or

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other acts or events inimical to the public health and safety. Through pre-established procedures, this centralized point can notify designated personnel for action as appropriate. It is also believed that simplified procedures, such as use of one centralized point for the reporting of significant events, (both safety and safeguards), will assist licensees in responding to continuing developments if an actual emergency progresses for some time. Accordingly, this provision remains as required under the 12 u

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present regulation. Regarding the submittsi of a' revised report, requir-ing full ' report resubmittal assists in standardizing the procedures for the reporting of safety and safeguards events. For safety-related events, these procedures are described in NUREG-1022, Supplement No. 1,

" Licensee Event Report System" wnich states:

The revised LER must stand alone. In addition, it would be very helpful if the licensee would indicate in the text on the .

LER form the revised or supplementary information. The revised or supplementary information could be noted in a manner anala- -

gous to amendments for FSARs by placing a vertical line in the margin.

For this reason, no changes have been made in response to this comment.

Finally, the staff has re evaluated the need to provide a copy of the safeguards log to ".. . if applicable, the appropriate NRC Resident Inspector. . . " and has determined this is an unnecessary burden to licensees a'nd inconsistent with*the goal of consistency with safety-event reporting procedures. Accordingly, this requirement has been deleted.

5. Clarifications Needed. Public comment requested clarification i

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of a numoer of terms and expressions used in the guidance for the proposed regulation.

Some of these have been clarified under the discussion of  !

other comment issues. The remaining terms are clarified here. All terms l l

or expressions discussed as part of public comment analysis for this rule are included in a glossary added to the rule's supporting guidance, Regulatory Guide 5.62, Reporting of Safeguards Events, Rev.1.

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" Safeguards system." This term covers the equipment, personnel, and procedures that comprise the physical protection program necessary '

to meet Part 73 requirements.

b. "Any failure of a safeguards system or the discovered non-inherent vulnerability...etc." In an attempt to clarify this phrase it has been 13 i.

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revised to refer to: "Any failure, degradation, or discovered vulner-ability. . ." and to delete the proposed definition for compensatory -

measures.

Rather than add an additional definition for compensatory j

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- measures to the Federal Code (which could be confusing), the existing definition found under 10 CFR 73.46(g)(5) and 73.55(g)(1) will.be used.

This definition will be referenced in the supporting guidance for this rulemaking. For further clarification,' descriptions of acceptable com *

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pensatory measures have been added to the supporting guidance. -

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" Credible" threat. A threat should be considered credible when (1) physical evidence supporting the threat exists, (2) information inde-pendent from the actual threat message exists which supports the threat,-

or (3) a specific group or organization claims responsibility.for the threat.

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"Significant physical damage" (as. applied to a power reactor, a facility possessing SSNM or its equipment, carrier equipment transport-ing nuclear fuel or spent nuclear fuel, or to the nuclear fuel or spent nuclear fuel a facility or carrier possesses). This term covers pnysical- )

damage to the extent that the facility, equipment,' transport, or fuel can not perform its normal function,

e. " Lost" versus " unaccounted for" re: transportation of material.  !

1 The term " lost" covers material that is no longer in the possession of '

the party authorized to possess it during a specific time period and a.

search for the material verifies this. ". Unaccounted for" refers to mate-rial in transit =which has nct arrived'at its delivery point four hours or more after the estimated arrival time. However, a search has not con-firmed the material to be lost.

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f. " Theft of SNM." The term refers to the unauthorized taking of SNM for unauthorized use.

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g. " Diversion of SNM." This term refers to the unauthorized move-1 ment of SNM by individuals authorized access to or control over the material. i'

h. " Loss of SNM." This term refers to (1) a failure to measure or account for material, authorized to be possessed by the licensee, by the material control and accounting system approved for the facility and not '

confirmed stolen or diverted or (2) an accidental (i.e. unplanned) offsite release or dispersal of SNM known or suspected to be 10 times greater than normal operating losses for the time frame in question whether or not the release is measured. The term " loss" implies that a search has been con-ducted to confirm the material loss. For fixed sites, this search should be conducted within the one hour t,ime frame of deportability. .

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" Safeguards Event Log " This term refers to a compilation of log entries for the events described under Section II of Appendix G to 10 CFR Part 73. Entries must include date and time of event, summary description of event, and action taken. For repeated events, the date and time should be recorded; however, the summary and action taken need only reference the initial event of the series of identical events. An active " safeguards event log" is not required to be maintained in one location onsite. Its format may be typed or handwritten as long as it-is legible and reproducible. Entries in a " safeguards event log" sub-mitted to the NRC need not be in time sequsntial order.

6. Miscellaneous Issues. This rulemaking grants a portion of a i petition for rulemaking assigned Docket No. PRM 50-36 from the Nuclear I 15

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Utility Backfitting and Reform Group (NUBARG). ,This rule responds speci-fically to Section VI of the petition, Reporting Requirements Associated with 10 CFR 73.71. In this section the petitioner suggests that the-

. regulation be amended to provide for written report submittal by the licensee within 30 days of initial. notification rather than within 15 days. According to the petitioner, this would allow aElicensee's staff l more time during the critical period immediately following an event to devote to the resolution of the problem and would minimize interference -

-with oaily operation; The NRC has agreed with-this suggestion in the past and included this revision within the final rule. . Comments received on this issue universally support the extension of the: time period for written report submittal. NUBARG acknowledged the action und requested a prompt response from the NRC on the remaining items'of the petition.

Comments received from one low enriched uranium fuel fabrication licensee noted that its NRC-approved physical security plan specifically identifies the reporting requirements for shipments that have not rer.ched their destination by the estimated time o,f' arrival. This commenter requested that the requirements for licensees subject to S 73.67 not be changed because these changes would produce no benefit but would result in added costs. The staff has made a thorough review of this issue, .

including inspection of reporting commitments in the subject licensee's physicai security plan and finds no conflict. A " lost" shipment carries with it the understanding that a search or trace investigation has deter--

mined the shipment to ba verified lost (see paragraph Se above). A ship-ment may be " unaccounted for" for up to 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br /> .before it is determined 16

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" lost." There is no difference in a reporting period described as "with-in one hour of discovery of a loss" versus "within one hour of obtaining results of a trace investigation."

Finally, during the course of public comment analysis, a question arose whether licensees would be required to submit physical security plan amendments to conform with this revised regulation. The revised regulation supersedes the previous S 73.71 and any previous security pl'an commitments dealing with reporting of safeguards events. Licensees are s not required to submit plan changes in response to the new regulation; however, those licensees who have paraphrased the previous 10 CFR 73.71 in their security plans should revise their plans to delete previous commitments in this area; these plan revisions may be submitted under.

the provisions of 10 CFR 50.54(p). It is noted that based upon the.

expected reduction in burden to affected NRC licensees with no resultant safeguards degradation, this regulation has been approved as a generic

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backfit and a backfit analysis is incorporated within this notice. .!

Environmental Impact: Categorical Exclusion The NRC has determined that this proposed rule. is the type of action described in categorical exclusion 10 CFR 51.22(c)(3). Therefore, neither  ;

- 1 an environmental impact statement nor an environmental assessment has been l prepared for this rule.

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, Paperwork ,% duction Act Statement This final rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

These requirements were approved by the Office of Management and Budget approval numbers 3150-009, 3150-0132, 3150-0002, and 3150-0123.

Regulatory Analysis '

The NRC staff has prepared a regulatory analysis on this final regu-lation. The analysis examines the costs and benefits of the alternatives considered by the Commission. 'The analysi:, is available for inspection in the NRC Public Document Room, 1717 H Street, NW., Washington, DC 20555.

Single copie,s of the analysis may be obtained from Priscilla A. Dwyer, Safeguards Reactor hagulatory Requirements Section, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regult. tory Commission, Washington, DC 20555, Telephone (301) 427-4773.

Regulatory Flexibility Certification i

I 4n accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C.

l 605(b), the Commission hereby certifies that this revised rule, if promul-gated, will not have a significant economic impact on a substantial number of small entities and will result in a reduction in burden to affected licensees. Some transporters, importers, and exporters of special nuclear material (SNM) and spent fuel will be affected by this rule. Each year out of approximately 600 reported events, about 3 come from this group 18

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which includes small entities. The rule also affects licensees who operate nuclear power plants and fuel facilities under 10 CFR Parts 50 and 73. The companies that own these plants and facilities do not fall within the scope of the definition of "small entities" sct forth in S 605(b) of the Regulatory Flexibility Act of 1980, or within the defini-tion of Small Business Size Standards set out in regulations issued by the Small Business Administration in 13 CFR Part 121.

Backfit Analysis As required by 10 CFR 50.109 (50 FR 38097), the NRC staff has comi-pleted a backfit analysis for this final rule. The staff has determined, based on this analysis, that backfitting to comply with the requirements of this final rule is justified because imposition of these requirements will result in a substantial increase in the overall protection of the public health and safety or the common defense and security and direct and indirect costs are justified in view of the increase.in protection.-

The backfit analysis, which includes a summary regulatory analysis, follows.

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SUMMARY

REGULATORY ANALYSIS

1. Objective.

In general, the objective of this rule is to clarify and simplify the reporting of safeguard events to the NRC by licensees.

Safeguards events include actual or attempted theft of special nuclear material (SNM), actual or attempted acts or events which interrupt normal operations at power reactors due to unauthorized use of or tampering with 19 J

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machinery, components or controls, certain threats made against facilities possessing SNM, and safeguards system failures' impacting the effectiveness =

of the system. The reporting of this' data to the NRC is necessary to assure safety during safeguards-related emergencies and to allow the Commission to identify and' characterize generic'and facility-specific precursors to certain safeguards events. Since the original issuance of s 73.71, the staff has found the requirements are frequently misinterpreted,

. that written follow-sp reports submitted pursuant to the regulation, lack ' -

3 uniformity.and that within these reports insufficient data is reported for NRC analysis.

Specifically, thes2 revisions will: (1) clarify to licensees the safeguards events that must be reported, (2) extend' the period of time for submittal of licensee written reports, (3) assure standardized and sufficient report-making to assist NRC data. evaluation, (4) eliminate telephonic notification and written reporting deemed unnecessary by the l

staff, and (5) assure a consistent and comparable level of reporting for safety and safeguards events.

2. Description of Activity. At present, licensees are required to  ;

report certain events within one hour or 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of their occurrence with submittal of written follow up reports within 5 or 15 days depending upon the event. All events reportable are required to be maintained in a sepa-rate log onsite,_while other events are simply required to be recorded.

The specific. events reported within these time periods or logged are  !

described by such broad phrases as " potential loss," " moderate loss of- )

i effectiveness" and " major loss of effectiveness." i The revisions to S 73.71 require events to be either reported within one hour or logged with the log submitted to the NRC on a quarterly basis.

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Events reported within one hour are required to be followed-up by a writ-tan report within 30 days. In describing the events to be reported, en attempt has been made to describe only those types of events actually requiring reporting and to assure that categorization of events which may warrant Federal involvement is made by appropriate Federal agencies, not the licensee.

The net results of the proposed regulations are to:

(1) eliminate the present 24-hour reporting requirement (most items presently reportable -

in d within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> will be logged, only, under the proposed rule),

(2) eliminate the requirement to log items reportable to the NRC within one hour, (3) clarify and simplify the descriptions of events to be reported or logged including clarification of information to be reported, and (4) require the submittal of a log of safeguards events to the NRC on a quarterly basis.

1 Since licensees are currently required to immediately report or log certain safeguards events, the major new activity required of the licensee l

under this amendment is submittal of the quarterly log to the NRC.

3. Potential Change in Risk to the Public from Accidental Offsite Release of Radioactive Material. An improved system for the reporting of 1

safeguards events, which might or in fact do lead to a radioactive release, e.g.,

radiological sabotage, could permit more timely and effective response to the incident. This could have the effect of decreasing the risk to public from an offsite release by allowing more timely mitigation of the event or more timely implementation of necessary contingency action.

4 Potential Impact on Radiological Exoosure of Facility Emoloyees.

l To the extent that an improved reporting system will permit more timely 21

[7590-01]

mitigation of a safeguards event involving a radioactive release, the potential impact of radiological exposure on facility employees will be reduced. Otherwise, with respect to radiological exposure, there is no impact on facility employees.

5. Installation and Continuing Costs.

Current Annual Licensee Operational Cost $15k/ site Revisad-Annual Licensee Operational Cost

$6k/ site.

Decreased Cost Resulting from Revised Regulation $9k/ site '

6. Potantial Safety Impact of Changes in Plant or Operational Complexity. None.

l

7. Estimated Resource Burden en the NRC.

Current NRC Operational Cost $126k/all sites Revised NRC Operational Cost $266k/all sites Increase Cost to NRC Resulting from Revised Regulation (due to increased l 1

}

time needed to analyze quarterly submitted log) $140k/all sites i

8. Potential Imoact of Differences in Facility Type or Age. No l potential impact is noted of differences in facility tyoe or age on the {

i relevance or practicability of implementing this rule.

9. The rule is final. I 22

_ _ _ _ _ _ _ _ _ _ _ _ _ .  ?-_ - - _ _ _ - _ ._ ___ :__-_. .~. . i

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[7590-01]

II. JUSTIFICATION 4

1. Increased Protection of the Public Health and Safety. The staff believes that issuance of this final rule will improve the implementation of reporting of safeguards events requirements due to increased clarity.

Further, it will improve the ability of the NRC to uncover generic precursors to events or defects in the safeguards systems used to protect the plant. Clarifying and simplifying procedures for reporting can have a significant impact on the' timeliness and effectiveness of establishing the NRC-licensee interface or other possibly necessary Agency interfaces (e.g., with the FBI) during actual safeguards emergencies. This results in increaseo piotection to the public health and safety because it facilitates a timely, coordinated response to safeguards emergencies by I the NRC, licensees, and other Agencies, as appropriate. , Improving the ability of the WRC staff to uncover generic precursors or defects provides the NRC with an improved capaDility to initiate corrective act' ion, if needed, prior to a vulnerability having a detrimental effect on the public health and safety. This action will, thus, also improve the protection of the public health and safety.

2. Cost Implications. Implementation costs are expected to be negligible because neither security plan amendments nor their review will be required. Annual operating costs are anticipated to decrease for industry, from $15k to $6k per site, because of' a reduced reporting burden, 1

and increase for the NRC, from $126k to $266k for all sites, because of the increased time needed to review quarterly submitted logs.

3. Priority and Scheduling. Based upon the resulting substantial increase in the overall protection of the public health and safety, as l 23 i

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[7590-01]-

discussed above, this backfit is considered to be a high priority. The i

proposed changes do not affect the schedules of other regulatory activi-ties on going at nuclear power plants.'

4. Findings.

The NRC staff finds that issuance of this final rule will result in a substantial increase in the overall protection of'the public health and safety and direct and indirect costs are justified in view of the increase in protection.

List of Subjects in 10 CFR Parts 70, 72, 73, and 74 Part 70: Hazardous materials - transportation.. Nuclear materials,

' Packaging and containers, Penalty, Radiation protection, Reporting and

~

recordkeeping requirements, Scientific equipment, Security measures, l Special nuclear material.

Part 72: Manpower training programs, Nuclear materials, Occupa-tional safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel.

Part 73: Hazardous materials - transportation, Irc9rporation by 1 reference, Nuclear materials, Nuclear power plants and reactors, Penalty, i

Reporting and recordkeeping requirements, Security measures. 1 Part 74: Accounting, Material control and accounting, Nuclear mate-rials, Penalty, Reporting and recordkeeping requirements, Special nuclear 1

material.

I For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, an2 5 U.S.C 553, the NRC is adopting the following amendments to 10 CFR Parts 70, 72, 73 and 74.

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PART 70 - DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

1. The authority' citation for Part 70 is revised to read as follows:

AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 86 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, -

5846).

Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat.

2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234).

Section 70.61 also issued under secs. 186,187, 68 Stat. 955 (42 U.S.C.

2236, 2237). '

Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).

For the purposes of sec. 223, 68 Stat. 958, as cmended (41 U.S.C.

2273); SS 70.3, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 70.24(a) and (b), 70.32(a)(3), (5), (6), (d), and (i), 70.36, 70.39(b) and (c),

70.41(a), 70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3),

and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.

2201(b)); SS 70.7, 70.20a(a), and (d), 70.20b (c) and (e), 70.21(c),

70.24(b), 70.32(a)(6), (c), (d), (e), and (g), 70.36, 70.51(c)-(g), 70.56, 70.57(b) and (d), 70.58(a)-(g)(3) and (h)-(j) are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 70.5, 70.ZDb(d) and 25 n- <

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4

-(e), 70.38, 70.51(b) and (i),'70.52, 70.53, 70.54, 70.55, 70.58(g)(4), (k),

and (1), 70.59, and 70.60(b) and (c) are issued under sec. 1610, 68 Stat.

950, as amended (42 U.S.C. 2201(o)).

1

2. 'Section 'O.52 is revised to read as follows:

l' S 70.52 Reports of accidental criticality or loss or theft or attempted theft of soecial nuclejr material (a): Each licensee shall notify the NRC Operations Center 1 within '

1' ,

one hour after discovery of any case of accidental criticality or'any loss, other than normal operating loss, of special nuclear material.

(b) Each licensee who possesses one gram or more of contained

• uranium-235, uranium-233, or plutonium shall notify the NRC Operations Center within one hour after discovery of a?j less or theft or unlawful diversion,of special nuclear. material which the licensee is licensed to l

possess or any incident in which an attempt has been made or is beli'eved t

! to have been made to commit-a theft or unlawful diversion'of such material.

(c) This notification must be made to'the NRC Operaticas Center via

he Emergency Notification System if the licensee is party 'to that system.

If the Emergency Notification System is inoperative or unavailable, the licensee shall make the required notification via commercial telephonic service or other dedicated telephonic system or any other nethod that will ensure that a report is received by the NRC Operations Center within one hour. The exemption of $ 73.21(g)(3) applies to all' telephonic reports required by this section.

m acommercial telephone number of the NRC Operations Center is (301)951-0550.

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[7590-01]

(d) Reports required under S 73.71 need not be duplicated under the requirements of this sectio.

PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE OF SPENT FUEL AT AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION

1. The authority citation for Part 72 is revised to read as .

follows:

AUTHORITY:

Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, 2239, 2282); sec. 274, Pub, L.88-273, 73 Stat. 688, as amended (42 U.S.C.

2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.'5841, 5842, 5846); sec. 102, Pub. L.91-190,83 Stat.

853, as amended (42 U.S.C. 4332).

Section 72.10 also issued under Pub. L.95-601, sec. 10, 92 Stat.

2951 (42 U.S.C. 5851). Section 72.34 also issued under sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154).

2. l Section 72.52 is revised to read as follows: '

S 72.52 Reoorts of accidental criticality (na loss of special nuclesc material.

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(7590-01]

(a) Each licensee shall notify the NRC Operatians Center 1 within one hour of discovery of accidental criticality cr any loss of special nuclear material.

(b) This notification must be made to the NRC Operations Center via the Emergency Notification System if the licensee is party to that system.

If the Emergn.cy Notification System is inoperative or unavailable, the licensee shall make the required notification via commercial telephonic service or any other dedicated telephonic system or any other method that '

will ensure that a report is received by the NRC Operations Center within one hour. The exemption of 9 73.21(g)(3) applies te all telephonic reports '

required by this section.

(c) Reports required under S 73.71 need not be duplicated under the requirements of this section.

PART 73 - PHYSICAL PROTECTION OF PLANTS AND MATERIALS

1. The authority citation for 10 CFR Part 73 is revised to read as follows:

AUTHORITY:

Secs. 53, 161, 68 Stat. 930, 948, as amended, sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as amended, 204, 88 Stat. 1242, as amended, 1245 (42 U.S.C. 5841, 5844).

Section 73.37(f) also issued under sec. 301, Pub. L.96-295, 94 Stat. j 1

789 (42 U.S.C. 5841 note).

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.

2273); SS 73.21, 73.37(g), 73.55 are issued under sec. 161b, 68 Stat. 948, j l

2 Commercial telephone number of the NRC Operations Center is (301)951-0550 .

28 l

l

____1_. _ _ _ _ _ _ _ _ _ _ _ _ . _ _ . _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ ._ AJ

4 4

[7590-01) as amended (42 U.S.C. 2201(b)); SS 73.20, 73.24, 73.25, 73.26, 73.27, 73.37, 73.40, 73.45, 73.45, 73.50, 73.55, 73.67 are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 73 20(c)(1),

73.24(b)(1), 73.26(b)(3), (h)(6), and (k)(4), 73.27(a) and (b), 73.37(f),

71.40(b) and (d), 73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(iii}(B) and (h), 73.55(h)(2), and (4)(iii)(B), 73.70, 73.71, 73.72 are issued under sec. 1610. 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

2. In S 73.67 paragraphs (e)(3)(vii) and (g)(3)(iii) are revised to read as follows: ,

S 73.67 Licensee fixed site and in-transit requirements for the physical prothetion of special nuclear material of moderate and inw strategic significance.

= a a a a

~

(e) '

(3)

(vii) Notify the NRC Oper ations Center 1 within one hour after the discovery of the loss of the shipment and within one hour after recovery of or accounting for such lost shipment in accordance with the provisions of S 73.71 of this part.

s s a n n (g) ***  !

l (3) ***

(iii) Conduct immediately a trace investigation of any shipment that is lost or unaccounted for after the estimated arrival time and notify the I 1 Commercial telephone number of the NRC Operations Center is (301)951-0550.

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[7590-01]

NRC Operations Centerl within one hour after the discovery of the loss of the shipment and within one hour after recovery of or accounting for such lost shipment in accordance with the provisions of 6 73.71 of this part.

3. Section 73.71 is revised to read as follows:

S 73.71 Reporting of safeouards events. - ~

(a)(1) Each licensee subject to the provisions of SS 73.25, 73.26,*

73.27(c), 73.37, 73.67(e),. or 73.67(g) shall notify the NRC Operatibns ,

Centerl within one hour after discovery of the loss of any shipment of SNM or spent fuel, and within one hour af te,r recovery of or accounting for

• such lost shipment.

(2) This notification ,must he made to the NRC Operations Center l

via the Emergency Notification System, if the licensee is party'to thet system. If the Emergency Notification System is inoperative or unavail-able, the licensee shall make the required notification via commercial telephonic service or other dedicated telephonic systems or any other method that will ensure that a report is received by the NRC Operations Center within one hour. The exemption of S 73.21(g)(3) Oplies to all I tele' bc ic reports required by this section.

(3) The licensee shall, upon request of the NRC, maintain an open f and continuous communications channel with the NRC Operations Center. l 1

\

(4) The initial telephonic notification must be followed within I

a period of 30 days by a written report submitted to the U.S. Nuclear I Regulatory Commission, Document Control Desk, Washington, DC 20555. The l

t licensee shall also submit one copy to the appropriate NRC Regional Office l

2 Commercial telephone number of the NRC Operations Center is (301)951-0550 .

1 30

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[7590-01]

Office listed in Appendix A to this part. The report must include sufficient information for NRC analysis and evaluation.

(5) Significant supplemental information which becomes available after the initial telephonic notification to the NRC Operations Center or after the submission of the written report must be telephonically reported to the NRC Operations Center and also submitted in a revised written report (with the revisions irdicated) to the Regional Office '

and the Document Control Desk. Errors discovered in a written report -

must be corrected in a revised report with revisions indicated. The revised report must replace the previous report; the update must be a complete entity and not contain only supplementary or revised informa-tion. Each licensee shall maintain & copy of the written report of an event submitted under this section as a record for a period of three years from the date of the report.

(b)(1) Each licensee subject to the provisions of SS 73.20, 73.37, 73.50, 73.55, 73.60, et 73.67 shall notify the NRC Operations Center within one hour of discovery of the safeguards events desci*ibed in para-graph I(a)(1) of Appendix G to this part. Licensees subject to the provisions of SS 73.20, 73.37, 73.50, 73.55, 73.60 or each licensee l possessing strategic special nuclear material (SSHM) and subject to S 73.67(d) shall notify the NRC Operations Center within one hour after '

discovery of the safeguards events described in paragraphs I(a)(2), i (a)(3), (b), and (c) of Appendix G to this part. Licensees subject to the provisions of SS 73.20, 73.37, 73.50, 73.55 or 73.60 shall notify I the NRC Operations Center withi7 one hour after discovery of the safe-  !

guards events described in paragraph I(d) of Appendix G to this part.

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{

(2) This notification must be made in accordance with the require-ments of paragraphs (a)(2), (3), (4), and (5) of this section.

(c)(1) Each licensee subject to the provisions of SS 73.20, 73.37, 73.50, 73.55, 73.60, or each licensee possessing SSNM and subject to S 73.67(d) shali maintain a current log and record the safeguards events

{

described in paragraphs II(a) and (b) of Appendix G to this part within-24 hours of discovery by a licensee employee or member of the licensee's contract security organization. The licensee shall retain the log of -

events recorded under this section as a record for three years after the last entry is made in each log.

(2) Every three months, each licensee shall submit to the NRC copies of all safeguards event log entries not previously submitted. Each licensee shall submit one copy of t. heir log entries to the U.S. Nuclear Regulatory Commission, Document Control Desk, Washington,. DC 20555.

(d) Each licensee shall submit to the Commission the 30-day written reports and copies of the safeguards event log entries required under the provisions of this section that are of a quality which will permit legible reproduction and processing. If the facility is subject to S 50.73 of this chapter, the licensee shall prepare the written report on NRC Form 366. If the facility is not subject to S 50.73 of this chapter, the licensee shall not use this form but shall prepare the written report in letter forma'. The report must include sufficient information for NRC n' analysis and evaluation.

(e) Duplicate reports are not required for events that are also

)

reportable in accordance with SS 50.72 and 50.73 of this chapter.

4. A new Appendix G is added to read as follows:

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[7590-01]

Appendix G - Reportable Safeguards Events Pursuant to the provisions of 10 CFR SS 73.71(b) and (c), licensees .

subject to the provisions of 10 CFR SS 73.20, 73.37, 73.50, 73.55, 73.60, and 73.67 shall report or record, as appropriate, the following safe-guards ev wts.

I. Events to be reported within one hour of discoverv. followed by a' written report within 30 days. -

(a) Any event in which there is reason to believe that a person has committed or caused, or attempted to commit or cause, or has made a cred-ible threat to commit or cause:

(1) A theft or unlawful diversion of special nuclear material; or (2) Significant physical damage to a power reactor or any facility possessing SSNM or its equipment or, carrier equipment transporting nuc' lear fuel or spent nuclear fuel, or to the nuclear fuel or spent nuclear fuel a facility or carrier possesses; or (3) Interruption of normal operation of a licensed nuclear power reactor through the unauthorized use of or tampering with its machinery,

, components, or controls including the security system.

(b) An actual entry of an unauthorized person into a protected area, i material access area, controlled access area, vital area, or transport.

(c) Any failure, degradation, or the discovered vulnerability in a safeguard system that could allow unauthorized or undetected access to a 3

pro;t:cted area, material access area, controlled access area, vital area, l or transport for which compensatory measures have not been employed.

(d) The actual or attempted introduction of contraband into a pro-tected area, material access area, vital area, or transport.

33

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II.

Events to be recorded within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> and submitted in quarterly 100.

(a) Any failure, degradation, or discovered vulnerability in a safeguards system that could have allowed unauthorized or undetected access to a protected area, material access area, controlled access area, vital area, or transport had compensatory measures not been established.

(b) Any other threatened, Ettempted, or committed act not previously defined in Appendix G with the potential for recucing the effectiveness i

of the safeguards system below that committed to in a licensed physical -

security or contingency plan or the actual condition of such reduction in effectiveness.

PART 74 - MATERIAL CONTROL AND ACCOUNT *NG OF SPECIAL NUCLEAR MATERIAL

1. The authority citation for Part 74 is revised to read as follows: '

AUTHORITY:

Secs. 53, 57, 161, 182, 183, 68 Stat. 930, 332, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2073, 2077, 2201, 2232, 2233, 2282); secs. 202, 206, 88 Stat. 1244, 1246 (42 U.S.C. 5842, 5B46).

For the purposes of sec. 223, 58 Stat. 958, as amended (42 U.S.C.

2?.73), SS 74.31, 74.81, and 74.82 are issued under secs. 161b and 1611, 68 Stat. 948, 949, as cmended (42 U.S.C. 2201(b), 2201(i)); and SS 74.11, 74.13, and 74.15 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

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2.

Section 74.11 is revised to read as follows.

S 74.11 Reports of loss or theft or attemoted theft of special nuclear material.

(a) Each licensee who possesses one gram or more of contained uranium-235, uranium-233, or plutonium shall notify the NRC Operations

(

, Center} within one hour of discovery of any loss or theft or other unlaw- /

i ful diversion of special nuclear material which the licensee is licensed f1 to possess, or any incident in which an attempt has been made to commit a -  !

theft or unlawful diversion of special nuclear material. The requirement -

does not pertain to measured discards or inventory difference quantities. 1 (b) This notification must be made to the NRC Operations Center via the Emergency Notification System if the licensee is party to that system.

If the Emergency Notification System is inoperative or unavailable, the licensee shall-make the required notification via commercia's telephonic service or other dedicated telephonic system cr any other method that will ensure that a report is received by the ARC Operations Center within one hour. The exemption of S 73.21(g)(3) applies to all telephonic reports required by this section.

(c) Reports required under S 73.71 need not be duplicated under the fi requirements of this section.

Dated at Bethesda, Maryland, this 21st day of May , 1987.

For the Nuclear Regulatory Commission.

/

Victor Stelio,'Jr./ /"

Executive Directo Affr Operations. i i

T Commercial telephone r. umber of the NRC Operations Center is (301)951-0550. ,

1 1

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_ _ ________.: a