ML20248L550
| ML20248L550 | |
| Person / Time | |
|---|---|
| Issue date: | 02/13/1998 |
| From: | Stoiber C NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-98-023, SECY-98-023-01, SECY-98-023-R, SECY-98-23, SECY-98-23-1, SECY-98-23-R, NUDOCS 9803230184 | |
| Download: ML20248L550 (13) | |
Text
l 2:K-eb in!thb gy j POLICY ISSUE (Notation Vote)
February 13, 1998 SECY-98-023 For:
The Commissioners I
From:
Carlton R. Stoiber, Director Office of International Programs
SUBJECT:
PROPOSED " SUBSEQUENT ARRANGEMENT" TO AUTHORIZE ARGENTINA TO RECOVER AND USE FOR MEDICAL ISOTOPE PRODUCTION, TWO KILOGRAMS OF U.S.-SUPPLIED, UNIRRADIATED HIGH ENRICHED URANIUM (HEU)
Purpose:
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" request from Argentina (Attachment 1) for approval to recover, process and use up to two kilograms of previously-supplied, unirradiated HEU for the production of medicalisotopes. U.S. approvalis being sought pursuant to the terms of the U.S.-Argentina Agreement for Peaceful Nuclear Cooperation (the Agreement) concluded in 1996.
Section 131 of the Atomic Energy Act of 1954, as amended, requires the Department of Energy to obtain the concurrence of the Department of State and to consult with the NRC, the Arms Control and Disarmament Agency and the Department of Defense, before entering into
Contact:
NOTE:
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a proposed subsequent arrangement. The Secretary of Energy must then make a written determination, noticed in the Federa/ Register, that the subsequent arrangement will not be inimical to the common defense and security. The NRC staff, in its review of proposed subsequent arrangements, applies the same tests to the proposals that we would apply in the case of direct exports. In respect to a proposed use of U.S.-supplied HEU, the provisions of AEA Section 134, parts a. and b.., are especially relevant.
Under the 1992 Schumer amendments to the Energy Policy Act (Section 134 of the AEA), the Commission is permitted 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 p
Energy Act, the Commission determines that -
(1) there is no attemative nuclear fuel or target enriched in the isotope U-235 to a lesser percent than that of the proposed export, that can be used in that reactor; (2) the proposed recipient of that uranium has provided assurances that, whenever an alternative nuclear reactor fuel or target can be used in that reactor, it will use that i
altemative in lieu of HEU; and l
L (3) the United States Govemment is actively developing an alterative nuclear reactor fuel or target that can be used in that reactor.
I The phrase " alternative nuclear reactor fuel or target" is defined to mean a fuel or target L
enriched to less than 20 percent in the isotope 235. The phrase "can be used" is defined to l
mean that the fuel or target has been qualified by DOE's Reduced Enrichment Research and l
Test Reactor (RERTR) Program, and the use of the fuel or target will permit the 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.
Status.of Argentine _Ratticipation in,the RERTRErogram summarizes Argentina's participation in the U.S. RERTR Program. During the 1980's, as a result of its participation, Argentina successfully converted its RA-3 research j
reactor to low enriched uranium (LEU) and began to sell LEU research reactors to other countries. The 1987 RERTR Conference was held in Buenas Aires in 1987. A new phase of U.S.-Argentine cooperation specific to the development of an LEU target for medical isotope l-production is under discussion.
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Status of Safeguards and Physical Protection in Argentina On March 4,1994, Argentina, Brazil, the ABACC and the IAEA entered into an agreement for the application of IAEA safeguards on all source and special nuclear material in their nuclear activities. The IAEA Board of Governors concluded that this agreement was compatible with the NPT. Argentina then ratified the NPT on February 10,1995. Argentina also ratified the Treaty for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (Tlateloco Treaty) and waived into force Article 28 of the Treaty on January 18,1994.
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The IAEA Annual Report covering 1996 states that, with the exception of the DPRK situation [lP t
note: the situation has nothing to do with Argentina], "..the Secretariat did not find any indication that nuclear material which had been declared and placed under safeguards was diverted for any military purpose or for purposes unknown, or that safeguarded facilities, equipment or non-nuclear material were misused. All the items which had been declared and placed under the Agency safeguards remained in peaceful nuclear activities or were otherwise adequately accounted for."
With regard to physical protection, a physical protection evaluation was performed during a U.S.
team visit to Argentina in July 1996. The conclusion of that review was that Argentina's physical protection program is consistent with the recommendations of IAEA INFCIRC/225/Rev.3.
Discussion:
The 1996 Agreement for Cooperation between the U.S and Argentina requires U.S. approval before Argentina may alter, in form or content, any U.S.-supplied HEU (or other nuclear material under the Agreement). (Older Agreements generally placed such prior-approval requirements only on irradiated material, but new agreements cover both irradiated and unirradiated material.) In the present case, Argentina has requested permission to recover up to two kilograms of unirradiated HEU from research reactor fuel fabrication activities and to l
prefabricate it as targets for medical isotope production in the RA-3 research reactor.
In association with this request, DOE has recently proposed establishing a Sister Laboratory cooperation between the Argonne National Laboratory (which provides U.S. technical management of the RERTR Program) and the Comisi6n Nacional de Energia At6 mica, focusing on the production of molybdenum-99 from LEU.
To help assure consistency of the proposed subsequent arrangement with the controls in Section 134, the U.S. Department of State has negotiated with the Argentine Ministry of Foreign Affairs a proposed exchange of diplomatic letters (Attachment 3), to be concluded in the near future, which would make clear certain commitments, as follows:
1.
Unirradiated HEU transferred pursuant to the Agreement or used in or produced through the use of material or equipment so transferred in Argentina may be altered in form or content for the purpose of recovering and processing uranium, including through the cleaning of precipitated uranium from filters, for the production of medicalisotopes.
2.
Whenever a LEU target is qualified by the relevant 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 lieu of an HEU target after required equipment has been installed and the necessary licenses have been obtained.
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3.
In order to facilitate a smooth transition to the use of LEU targets, the U.S. and Argentina will cooperate in a program to develop LEU targets that can be used to l
produce medicalisotopes.
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The diplomatic notes are designed to effectuate a generic advanced consent to allow alteration in form or content of all U.S.-supplied unirradiated HEU scrap for fabrication of targets.
l These commitments and Argentina's nuclear nonproliferation guarantees provide the basis for l
the Department of Energy's conclusion that the proposed subsequent arrangement is not inimical to the common defense and security.
Coordination:
EDO concurs in this paper. OGC has no legal objection.
Recommendation:
That the Commission approve the response to DOE at Attachment 4, indicating no objection to the proposed subsequent arrangement, contingent on the completion of the proposed exchange of diplomatic notes.
y Carlton R. Stoiber, Director Office of International Programs Attachments:
1.
Faxed memo from T. Lee, dated 1/14/98 2.
Faxed memo from T. Lee, dated 1/27/98 3.
Fax / Draft Exchange of Letters with Argentina from F. McGoldrich dated 1/21/98 4.
Letter from R. Hauber to C. Fitzgerald Commissioners' completed vote sheets / comments should be provided directly to the Office of the Secretary by COB Tuesday, March 2, 1998.
Commission Staff Office comments, if any, should be submitted to the Commissioners NLT February 24. 1998, with an information copy to the Office of the Secretary.
If the paper is of such a nature that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.
l DISTRIBUTION:
OCAA CIO f
.________________________-__________a
,O'1gl4/98 WED 17:18 FAI 2085668333 NN-43
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L*NITED STATES COVEIMMENT DEPARTMENT OF ENERGY meir1oranc11m i
Date:
January 14,1998 e
From:
Tern T. Lee, NN-42
Subject:
Request for Subsequent Anangement Under NNPA of1978 To:
Distribution Attached for your review is a draft Federal Register notice conceming a proposed subsequent arrangement. Due to it urgency of this matter, I would appreciate your response by January 20,1998. If you have any questions. please contact me at (202) 586-8945 or fax me at (202) 586-6789/2323. Thank you.
Distribution:
Mr. Joseph Chuch!a Mr. Michael Johnson Office of Technology and Pohcy Analym OSD/ISP! Negotiations and Implementation Department of Commerce Department of Defense OTTA Room 4069A 2500 Defense Pentagon Washmgton, D.C. 20230 Washington, D.C. 203012600 Tel- (202) 482 4188 Tel:(703) 693-8917 Fax:(202)482 4145 Fax:(703) 693 7812 hQMC bdMdr.
Mr. Robin DeLabane UTC Jonathan Fox PM/NE Defense Special Weapons Agency Department of State 6801 Telegraph Road Washington, D.C. 20520 Alexandria, VA 22310-3398 Tel: (202) 647-3978 Tel:(703) 325-7358 Fax:(202)647 0775 Fax:(703) 325 2953 Mr. Ronald D. Hauber Mr/MichaelD Rosenthal Ofnee ofIntemanocal Programs Arms Control and Disannament Agency Nuclear Regulatery Comausao..
NWC/INA, Room 4678 Washmgton. D C. 20555 Washington, D.C. 20555 Tel: (301) 415-2344 Teli(202) 647-2832 (Mark Goodman)
Fax.(301)415 2395 Fax:(202) 736 4336 l
ATTACHMFNT - 1
2025862323
,01/04/98 WED 17:12 FAI 2025862323 NN-42
@ 002 BILLING CODE 6450-01-P 535Mistur DEPARTMENT OF ENERGY O Oc.
Office of Arms Control and Nonproliferation Policy em PROPOSED SUBSEQUENT ARRANGEMENT mmeca.
AGENCY:
DEPARTMENT OF ENERGY DOS muma ACTION:
SUBSEQUENT ARRANGEMENT ocE
SUMMARY
- Pursuant to paragraph 2 of Article 6 of the Agreement for Cooperation Between the Government of the United States of America and the Government of the Argentine RepublicM (-
Concerning the Peaceful Uses of Nuclear Energy, notice is hereby given of a proposed
" subsequent arrangement" with respect.a the alteration in form or content of unitradiated high m1E '
enriched uranium (HEU) subject to tne Agreement.
-asn cx.
The subsequent arrangement to be carried out under the above mentioned agreement involves approval of the alteration in form or content of up to 2 kilograms of unirradiated HEU subject to the Agreement in Argentina for the purpose ofrecovering and processing uranium for the
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08E production of medical isotopes.
muecx.
In accordance with Section 131 of the Atomic Energy Act of 1954, as amended,it has been determined that this subsequent arrangement will not be inimical to the common defense and security.
Det" This subsequent arrangement will take effect no sooner than fifteen days after the date of publication of tlus notice.
mu.a DATED:
31E
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For the Department of Energy oct Cherie P. Fitzgerald Director msm Intemational Policy and Analysis Division wwaos Office of Arms Control and Nonproliferation DUE m usca. -
massa oct oMrr.ws e OFFICIAL FILE COPY
- M 90 PM
01/27/98. TtT 12:03 FAI 202s862323
'NN-42
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MEMO To:
Ron Hauber
_s From:
Terri T. Lee
Subject:
Proposed Argentina Subsequent Arrangement Date:
January 27,1998
- Suzanne, l
As you requested, I am providing you with a short summary of Argentina's participation in the Reduced Enrichment Research and Test Reactor (RERTR) program at the Department of Energy.
Please contact me on 202-586-8945/or fax: 202-586-2323 ifyou have any additional questions, j
i Summarv History: In 1980 the Argonne National Laboratory and Argentina's CNEA signed a MOU to cooperate, under the Department of Energy's funding, to design advanced fuel that can be used in Argentina's research reactors. By the late 80's, the cooperation lead to the successful conversion l,
of Argentina's research reactor, RA-3, to LEU. The US-Argentina cooperation under the MOU eventually ended between 1987-1989. Success proofed beneficial to Argentina. It began to sell l
LEU research reactors to other countries close to the time when the RERTR Conference was held m Buenos Aires in 1987.
l Current Status: The DOE recently proposed establishing a Sister Lt.boratory cooperation l
between the Argonne National Laboratory and the CNEA in Argentina, focusing on the i
l production of molybdenum-99 from LEU. Scientists from Argonne soon plan to visit Argentina j
to discuss the proposed cooperation.
cc: Suzanne Schuyler-Hayes u
I y
l lu ATTACHMENT - 2
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,JAN-21-1998 12:43 PMME 202 647 0775 P.01/06 4
United St:tes Dep:rtm:nt cf State
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ATTACHMENT - 3
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.JAN-21-1998' 12:43 Pft4E 202 647 0775 P.02/06 I
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argnte
Dear Mr. Minister,
I have the honor to refer to paragraph 2 of Article 6 of the Agreement for Cooperation between the United States of America and the Argentine Republic concerning Peaceful Uses of Nuclear Energy signed February 29, 1996 (hereinafter referred to as "the Agreement') and to propose the following understanding with respect to the alteration in form or content of high enriched uranium (HEU) transferred pursuant to the Agreement or used in or produced through the use fo material or equipment so transferred:
Pursuant to paragraph 2 of Article 6 of the Agreement, the Government of the United States of America and the Government of the Argentine Republic agree that unirradiated HEU transferred pursuant to the Agreement or used in or produced through.the use of material of equipment so transferred in Argentina may be altered in form or content for the purpose of recovering and processing uranium, including through the cleaning of precipitated uranium from filters, for the production of medical isotopes.
The Government of the United States and the Government of Argentina agree that whenever a low enriched uranium (LEU) target has been qualified by the relevant 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 lieu of an HEU 1
target after required equipment has been installed and the necessary licenses have been obtained.
In order to facilitate a smooth transition to the use of LEU targets, the Government of Argentina and the Government of the United States will cooperate in a program to develop LEU targets that can be used to produce medical isotopes. A Joint Technical Working Group including experts from Argonne National Laboratory, the CNEA, and other relevant scientific institutions in Argentina and the United States will be established to consult on technical, environmental, regulatory and economic considerations pertaining to the adoption of new LEU targets for the production of medical isotopes.
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L---_-_____-____-__
.JAN-21-1998 12:44 Pfi/NE 202 647 0775 P.03/06 If the Government of the Argentine Republic concurs, I propose that the understandings in this letter and your reply will become operative on the date of your reply.
Please accept the assurances of my hi hes+-
9 consideration.
Sincerely, i
I
, JC4-21-1998 12:44 PM/NE 202 647 0775 P.05/06 I have the honor to confirm the following understandings with respect to paragraph 2 of Article 6 of the Agreement for Cooperation between the United States of America and the Argentine Republic concerning the Peaceful Uses of Nuclear Energy signed February 29, 1996 (hereinafter referred to as "the Agreement'):
j Pursuant to paragraph 2 of Article 6 of the Agreement, the Government of the United States of America and the Government of the Argentine Republic agree that unirradiated HE0 transferred pursuant to the Agreement of used in or produced through the use of material or equipment so transferred in Argentina may be altered in form or content for the recovering and processing uranium, including through the cleaning of precipitated uranium from filters, for the production of medical isotopes.
The Government of the United States and the Government of Argentina agree that whenever a low enriched uranium (LEU) target has been qualified by the relevant 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 lieu of an HEU target after required equipment has been installed and the necessary licenses have been obtained.
In order to facilitate a smooth transition to the use of LEU targets, the Government of Argentina and the Government of the United States will cooperate in a program to develop LEU targets that can be used to produce medical isotopes. A Joint Technical Working Group including experts from Argonne National Laboratory, the CNEA, and other relevant scientific institutions in Argentina and the United States will be established to consult on technical, environmental, regulatory and economic considerations pertaining to the adoption of new LEU targets for the production of medical isotopes.
I confirm that these understandings will become operative as of today.
j Please accept the assurances of my highest consideration.
.JAN-21-1998 12:44 PM/tE r,
202 647 0775 P.06/06 1
t i
l Sincerely, 4
1 1
l l
TOTAL P.06
Ms. Cherie P. Fitzgerald Director International Policy and Analysis Division, NN-42 OfEce of Arms Control and Nonproliferation
_ Department of Energy j
. Washington, D.C. 20585
Dear Ms. Fitzgerald:
The Nuclear Regulatory Commission has reviewed and does not object to the proposed
" subsequent arrangement" subject to the Agreement for Cooperation with Argentina to alter in ferm or content of up to 2'!:ilograms of unirradiated high enriched uranium for the purposes of-rect vering and processing uranium for the production of medical isotopes, upon conclusion of
)
the exchange of diplomatic notes.
I Sincerely, l
Ronald D. Hauber, Director Nonproliferation, Exports and Multilateral Relations Office of International Programs I
I l