ML23156A402

PR-110 - 56FR24682 - Return of Topaz Reactor to the Soviet Union

ML23156A402
Person / Time
Issue date:	05/31/1991
From:	Chilk S NRC/SECY
To:
References
PR-110, 56FR24682
Download: ML23156A402 (1)

Text

ADAMS Template: SECY-067 DOCUMENT DATE: 05/31/1991 TITLE: PR-110 - 56FR24682 - RETURN OF TOPAZ REACTOR TO THE SOVIET UNION CASE

REFERENCE:

PR-110 56FR24682 KEYWORD: RULEMAKING COMMENTS Document Sensitivity: Non-sensitive - SUNSI Review Complete

STATUS OF RULEMAKING PROPOSED RULE: PR-110 OPEN ITEM (Y/N) N RULE NAME: RETURN OF TOPAZ REACTOR TO THE SOVIET UNION PROPOSED RULE FED REG CITE: 56FR24682 PROPOSED RULE PUBLICATION DATE: 05/31/91 NUMBER OF COMMENTS: 0 ORIGINAL DATE FOR COMMENTS: 05/24/91 EXTENSION DATE: I I FINAL RULE FED. REG. *cITE: 56FR24682 FINAL RULE PUBLICATION DATE: 05/31/91 NOTES ON PUBLISHED AS A FINAL RULEMAKING. FILE LOCATED ON Pl.

TATUS t.1F RULE TO FIND THE STAFF CONTACT OR VIEW THE RULEMAKING HISTORY PRESS PAGE DOWN KEY HISTORY OF THE RULE PART AFFECTED: PR-110 RULE TITLE: RETURN OF TOPAZ REACTOR TO THE SOVIET UNION loPosED RULE PROPOSED RULE DATE PROPOSED RULE SECY PAPER: SRM DATE: I I SIGNED BY SECRETARY: 05/24/91 FINAL RULE FINAL RULE DATE FINAL RULE SECY PAPER: 91-136 SRM DATE: I I SIGNED BY SECRETARY: 05/24/91 STAFF CONTACTS ON THE RULE CONTACTl: JOSEPH F. SCINTO MAIL STOP: 15-B-18 PHONE:

CONTACT2: JOANNA M. BECKER MAIL STOP: 15-B-18 PHONE:

DOCKET NO. PR-110 (56FR24682)

In the Matter of RETURN OF TOPAZ REACTOR TO THE SOVIET UNION DATE DATE OF TITLE OR DOCKETED DOCUMENT DESCRIPTION OF DOCUMENT 08/05/91 08/05/91 NOTICE OF INTENT TO SEEK PERMISSION TO APPEAR BEFORE THE COLIEGIAL COMM. IF NECESSARY, AND IN THE ALTERNATIVE ***

08/12/91 12/19/91 LTR DRAKE TO HAUBER, ET AL., RE THE JANUARY 1, TOPAZ REACTOR SYSTEM 08/27/91 08/29/91 LTR JULIAN TO DRAKE REQUESTING CORRESPONDENCE IN ORDER TO REVIEW DRAKE'S LTR OF 8/5/92 08/27/91 08/27/91 LTR JULIAN TO DRAKE REQUESTING COPY OF DARKE LTRS DATED 6/27/91, 7/17/91 l 7/18/91 09/09/91 09/06/91 LTR DRAKE TO HAUBER, ET AL. ADVISING THAT ON 7/24/91, APPARENTLY AS A *DEVICE*, A TALENTED

- 09/10/91 12/19/91 SECOND GENERATION SPACE NUCLEAR POWER SYSTEM LTR MICHAELS TO DRAKE ACKNOWLEDGING DRAKE'S NOTICE OF INTENT TO SEEK PERMISSION TO APPEAR BEFORE THE COMMISSION ***

09/20/91 09/19/91 LTR DRAKE TO HAUBER, ET AL. REQUESTING NRC TO RESPOND TO HIS LffiERS OF 7/17 l 18 09/30/91 12/19/91 LTR DRAKE TO HAUBER, ET AL., RE THE FINAL RULE PUBLISHED ON 5/31/91 WITH RESPECT THE *TOPAZ II*

IMPORT, RECEIPT, AND POSSESSION PROCEEDING 12/16/91 12/12/91 LTR CHILK TO DRAKE ACKNOWLEDGING THE RECEIPT OF DRAKE LITTER OF 11/12/91 12/19/91 11/12/91 LTR DRAKE TO HAUBER, ET AL., RE HIS LffiER OF 8/12/91 12/19/91 10/18/91 LTR PARLER TO DARKE RESPONDING TO DRAKE'S LETTER OF 6/27, 7/17 l 18, 8/5 AND 9/19/91, CONCERNING THE IMPORATION OF THE SOVIET TOPAZ III REATOR ***

DOCKET NUMBl:HPR / / A PROPOSED RULE,..:...;;;..,.._...v

(_£ c, Ff< f). '-I 6i 0 UNITED STATES LU Ll'it i ED NUCLEAR REGULATORY COMMISSION US NRC WASHINGTON, D. C. 20555 September 10, 1991 '91 DEC 19 P4 :12 OFFIC!: OF SEC, ETARY John Francis Darke OOCKfi ING & s**;1v1cr Box 703 Copper Queen Station t.1RA NC~

Bisbee, Arizona 85601

Dear Mr. Darke:

We have reviewed your notice of intent to seek permission to appear before t,1e Commission and notice of intent to file a Title 10 Chapter I Part 110 Subpart L, Rulemaking. Pursuant to these regulations there is no need to appear before the Commission for permission to file a petition for rulemaking. Simply file your petition according to 10 CFR Part 110, Subpart L, and it will be handled accordingly.

Thank you for your interest.

j . j {/4~/t/4/;/

~ h ~f', fchaels Attornif Office of the General Counsel

f;OCKETED USNRC

'91 DEC 19 P4 :12 OFF!CE OF SECRETA Y DOCKET ING SFftVICL

- BRANCH It has been OY~r three()) months since the writer approached the Commtns1on with questions an~ coffltllltnt, conoern1n1 a Final lule pub~

lishe~ on May 31, 1991 with respect the "TOPAZ II" import, receipt, Rnd poseeesion procee~ing. (See your RIN 3lSO AD 9S as published-in the Federal Rer,19ter on May Jl $6FR24682 regarding NRC Specitio Import License Ho. IR 9 ~ round upon Docket No. ll00li387.)

Writer's first tran~mittal in this 111atter ~as rend.tted to the HftC, V1A ne~tstered Hatl, on June 27 1 1991 and receiTed, or so th* -p9r-tinent po~tal record would indicate, b1 the NRC on July 2 1 1'91.

As or today, no 9Ub8tant1ve response to euch quetton* and conai1nt1 hair been found to be forthoominl* '_,: ,.::**.:.f: _..** )* *r*,." *. :.*

• The writer would, reapective11, call the Chau,,eraon** att*ntion to the applicable Federal Statutes

. and pertinent NRC Regulat1an81.

~2 use 22)1 stat.HI 1n pertinent parts "The provisions of the Admin19trat1ve Procedure .A.at shall appJ.T ~

all ai,,ncy action taken un~er this chapter, and tbe tenu "agency*

ancl 1tav,eno7 action" shall have the -meaning epeo11'1ad in the A.dllin-istratin Procedure Acts Pron.ded ~wever, That i.n ' the case ot agenc7 proceedings or actions whic' ~volve Heatrioted Data or d**

tense information, the Collllld.Slion shall pro'fide bJ regulations to~ ..

such parallel procedures as "111 etreot1vel1 aategQU'd and pNftllt -

disclosure or tteatrict*d Data or d1tena1 intol'lll&tton *to unautbor-

• ized persons ~ minimum impairment ot !!!!, procedlU"al mhts ,-.

which would be available it RestrlctedData or 5 use 555(e) states in pertinent parts 11

,.,~~

a.r.n..

were not involved." (Hit Add1t1onal e"'l)!laaia here added.) .. -_

rro111pt notice shall be given ot the den1'11n tniole or 1n part;* ot a vritt~n application, r,etition, or other r1gu11t ot an intereeted ormation :

~**,

£!rso~ ~ ~ connection !!!h !-'&aie'ii'ci proceed:t.iii.,r- (iiiiphui lldJcd.) .

i~ I IIJ 10 CFR ll0l4 here 1n pertinent part reads 1 "Inquiries concerning this part should be addressed to the Aae:Le*

tant Director tor International Securit:,, Ottioe ot Oovernniantal and Public Atf'atre I U. S. Nuclear Regulatory Collllll1H1on. * *"

10 CFR 110.81 etateaa

.I 10 C.P'R 110.81 stateat "Th~ Cc>mmieeion encourages Witten cotQlh9nts fl'Om th* public N*

g&'J"ding export and impgrt license applications. The Cofflllission will col)aider and, ll:* appropriate, respond to these cow~t* * -* ...:*. , ...

-*  : .; ~:t~~--~  ;{~t~-

rr possible, these comments should be submitted Within 30 d&J8. ** . * /* ,'.:;*

af'ter public notice or receipt or the application and

• addreasad ..- * ,1 to the Secretary, U. S. Nuclear Regulator,

• CoM11aion, Wa*hinpon, .,

• D C 205SS, Attentions Chief, Docketing and Serrice Br~cli. *- * ./ * ;* :::

The comm1.sa1on will provide the applicant nth a oow of the com-ments and, if' appropriate, a

• reasonable opportunity tor reaJ)Olll** "... .t :..__ . .

(Emphasis added.) ,. * * . !'

The wr1ter*s 910627 and nurraerous others request* *. 1 substant1ve .'~~,.*~: .-

• sponse to inquiries and comments contemplated b7 the explicit , ._. ,,, . t* .. t guidance laid out supra. Suoh information aa has been requested * .*. :. ~--

by the writer over the last three months 1s requ.ired b7 the PNI-: *. * .*. _,....*.

ent mamber ot public in order to come forward With a pet1t1on- tor * *. ~._*:*

rule making which would mitigate the effects ot the dia~oN&tion :~{J: f :1:.

contained 1n the Ma7 31, 1991 P'inal Rule.

• And, the errora~ ot Lav * :*~:;. *_ .~

contained therein. * -* . ,.,

Ir Restricted Data ( "Classitied Information") would be neoesaar,*, l .*',:.-:.

tor an explicit response -to wr1ter *s o011Mnts and 1nqu1i-1ea oon* * -.-.-

cerning such F.inal Rule, would re1peot1vel3 requ11t tbat -HRO .. . **:*r*.~..;i"-:-,.,

pursue Executive Order 1206$ Mandatol'7 bn.ew. and Deo1-*,U~i.t~*:*::t:.\;.l<.;-:

Procedures where required. (See,* tor example, 22 CFll ~n.~O ;~,;-;: , * ;_~ <--..-

aeq.) . ~~ . . ,,, '.: ~- :_ '.'. -~

ohn J~noia Darke

• mber ot Public

._. ,~/,;3: *;i;,

• Chairperson

u. s. Nuclear Regulatory Commission, as sitting Ronald D. Hauber Assistant Director Exports, Security and Safety Cooperation AND Willl&'.111 c~ Parler International Programs General Ce>unsel Office or Governmental u. s.. Nu.olear Regulatory and Public Affairs Oc,-1,slon

u. s. Nuclear Regulatory Commission (NRC)

It could easily although reluctantly, be rep}.'esented that a discrepancy accrued to the January 1991 TO~.\Z i-eactor system import proceeding. That proceeding propon~a., - or'. 1n the alternative, proposed to issue a NRC SpecifU, l~rt "License" IR 9~~~2 on January 4o (See Docket No. 1101.a)?-. )*

A perusal of such transmittals, or any fair ~presentation of such, calls to mind that such NRC Records, pQJJQl.~ly, present the opportunity for a pUblie perception mis*~.-nture .

~** t:

A Federal Hev,ister notice of a Final rule, 4tt.d May 31, 1991, :"-:'(

(see ~6FR?IJ6B2 , 21.i68J) states, here in pe~~n~ -part:  ;-/~ff "In January l.991. the TOPAZ II reactor 8)'ster.~ a lepaoe reactor***"'..-_;;.~*-*

was importerl into the United States under a.n *- mte) iff1port lieens**J/

at the behe st of the Department of Defense *(~D~, for...  :);;~

inspe~tiou and study *** 11 * *: --:-~; .

.**:r~

Note that here S6Ftt24683 11' referring to a 1'$eot1on 104 11 Specific Import License whioh was issued perwan't to 10 CFR  ::m, _

110.hh(b)~ in response to, or at the direo~qn o!* an appl1oa- **i*k~ ,

tion tendered by the u. s. Department of ~Bns&/Strategic _*,-._,.'""

Defense Initiative Organization (DOD/SDIO); 11ateii December 28, * .

• I .. *  :  :: . ,

And further., 56F'R2468) statess 11The reactor~ UlP<>l'ted with* °":fi out fuel, coolant or moderator and is non..:ra¥ng*" Andt '}'.i

' :  : .j : .,

"Although presently uni'ueled, the TOPAZ II -IMctor is a react~,_>5~1

• peculiarly adapted to making use of atomic .Wl'IY and was im- .:;r~t .'

ported under NRG import lice,nse No. IR ~ , -11JJutd Januaey 4rtfJ~

1991. This Hcense contained a condition t~ ~tho* effect that it/'I ~

would 'become effective~~ written ** . ~*§5ement, .2Z _*:-:.f fl:  ;...

~ author~~ representa~ * .. , that ~ ~ t t ,~i'rom the Uni~J:.-1 .

States of the 'l'OPAZ II Reactor System must "="t, ~h* requirement*,:!~~

• of the u. s. Atomic Energ Act of 19$4, as '* . .:nded. Under the *:ffJ-.:* .

Agreement for Cooperation in th.a Peaceful ,u.,..

law, at present, these requirements include ?bbe S'l**d for an ot Atoll'lic Energy~

~ authorized representa.tiv~ ... ac_lrnowl** *-thls oo~1ti,on. .--#;~.-

} r * .

There is currently no such .Agreement for ** ~1itfon.. .

d~mpS.as .........

", *,t;

• - . , * .,,,. /t Such representation by $6FR2u68) (or the pl'@Ud t111J>ort licen . ::* *

• does not see m to properly reflect required ~t"n *assurance(s)":

which were, by Gommission order, required to: be obt-d.&d b1 th*;:...: .

NRC Staff from the Executive Branch prior .~t>},h*;lsauance ot an:.J:P -*'.:

effective import license. -4nd. t,nus tt _co~ -)__e ~p~~J!~e~~- tb,ff}"_f f

• ,.*~:- . ~~:l*;.i ;**fw*

! . \.,  : "/f .'

The pertinent "condition" embodied in the mt}- ~citio License --~ ::?

IR 9~~2, as was proposed to be issued ( S\\ptia:) .OP January 4,  :\t_

1991., seems to hang back from properly and \f~hr11htly 1mple- "~:/

menting., by such licensing action, the appltca..bl* instructions :'. ~

contained in a Commission order, a NRC Statfi 1\eq\llremonts Me!QOoo : -F*

randum of the same date. (Site discussion ot, tha ;.SRM below.) -+~..

' :*'?,-.*:.rr Particulal'ly, as that SRM was, in t\lrn, res~eite to a 11 SECY  :~\*t ..

paper" which had been submitted by the ~~- S_ ~,.tl, to the Cotnmia * .

itself., a few d~ys before. (It is not knoiilfU a proposad imporft;****.

license was submitted by the NRC Staff with tut -ttSECY paper. 11 )-.~-"f:';,

., ~ .

By way of a N!{(.; :'itaff, negative consent, polf~1 ~saue paper ~" .

(SECY--90-11 26 , dated December 31, 1990) wh1oll .w-.s; submitt~d to  :.,*, 1..,

the .sitt,inf': collegial u. s. Nuclear Regul~tot}' 91>.talllisdon ..;.'.~~

itsel f , ancl wA:, signed by Ja*s R. Shea, Dtre.~tor, Inwrnat1on&1::,,.*; 1 Programs , Jffice of Governmental and Public M'fatrs, the , : :::. ,

NRG Staff ~ou~h t. : j :f!J "To inform the l'o-ssion of tha staff's iilj:\,,btin to ieeue an import licen~e to a Department of Defense 4ont~tor to allow *.'. ~i: _

JTI au o incore thermionic liquid metal ( Nate) 'thehntl .spectrum spacct-.::...

reactor to ~ntor the U. S . "  ::~.; h

, ~. *u,:;

And that the NHC "staff' is prepared to issue, ~n* i 1nport license ; .;}~

to ra Department of Defense contractor &8 tlquested by the *a:?~~

December 28, 1990 D0D/SDIO applicatioriJ it l.~ *r e I1s no obj e ct i o~f ) :...*

• on the pa.rt of t.he Comlllission itself *" . r}!

Dy way of background, S!CY.90-426 briefly~*~* the NRC/ ..

Applicant interaction up to December )l, and ***j,tt-lrtd *-pertinent ,_c~,~jf/i 1

".:T.~:t,I-documents.. , * ~ *.J.,,

-~~

In pertinent part SECY-90-426 further stateai 11 The staff notes that the importation of a u,~ i.&tion facilit1 does not require an Agree1119nt for Cooperatu,* *.w1~h the exportinl . '\;I country (Seot:i.on 123 or the Atomic Enera M>~.), ~ut eXpOrtation * ' *'°'.-.'.

of a utilization facility d09s require suoh ~ agNteM&nto The **.r:f .

staff has advj sed SDIO that the absence of n~h ~ agreement  ;~ te' between the Uo s. and the elq)orting countr,-.;:-woul,d block NIC b .

issuance of nri export license to return the f QPAZ reaotor ( .to t . *' :~,

r eMctor sy ,;tE1m~ cow1try of origin] .  :: . --~:.,\~

.. ~::\?~

11 There is no requirement to 11011c1t or considijf. thj9 news ot the J_  ;),~

Executive Branch in regard to import licensli\gs ~Yer, copies .: ti of the enclosures to thie paper were telet~ ori December 28 ta.Ji the Department of State... We asked

• that 1t *DOB* 1 aaw *any- 1seu*

• f*t --*-

tha t should he considered in our review to uir1)rln: ue as soon as * - ~;tl *i

• possible." ( Apparently, such ?ffiC/00S did not :t~c~1.1de a draft or _,.'__ *.** 'fl proposed Eipecific Import License for DOS cond\lrr ~ oe , or comm&ntf~;~

In the event, the "issue that should be con*~re~ 1* was , even t ~

more than apparent .) .. *A: !"tit ~equirement1, ;fitiiiqr&ndum dated .- }~ffe.!

January 4, 1991, signed by the Secretary ot*'tJie *U* s. Nuclear ~.~JI Regulatory Commission, at the behest or the ~~11.egiil Commi.ssion <Jffi itself, would by way ot response to that veey ~ &$ SSOt-90-426, :.~~ '.~~

order additional Executive Branch consuhati9 Ill~ the u. s.

Department of St ate before an import licen~ ei>ul.d *lt1tctively . t?'

.:,LI issue.

• 1* , . ' '. : ~

. *, . *'".:r::,

"' -.~:...

\" ! .. .

~~ ;*;. ~!'-

~ *\~

The subject. SHM, NRC 910104 Coilk/Shea, ordere4 tll*t certain assurances should be obtained by the NRC Statf* t~m the U. ~

Departmen~ 2f State, by wa7. of Executive Br~b cQnaultatl'ons, prior to ally :implementation of the Section 104*: i~rt license.

Executive Branch consultatione, as were here ~*red:, is not an .offhand or casud affair. Such procedUNa'..,. ;fJtrietl.7 delineated .

• The s econd requirement of the 910104 NRC Statl*; Requii-ements Memorandum ordered that assurances should be Q~t*tn&d from the U. s. Department of State that the country ot :oti&i.n ot the TOPAZ reactor system, which was proposed to J.?e. ~~i'ted , has been informed of the problems in granting a ~1-a,i 104d export license r equired for the return of thlt :~o~~j . and that, ... _,,

such country has expressed no objections to ~ i111pott '1nder those circumstances o (See 910101& SRM tor the *exao-t wording _*_L~;,..

of the Commit-1sfon I s order. ) - * ** .~.-;i,..

• ~ ...

At this time , the attached 910108 notwithsta....u...-.. , .* the ~ublio .{.:. lj ~*,!ii~

record r emain~ bare of any NRC record whioh w ~ <<soou.-nt that such assurances by the u. s. Department *¢ St~te., as were ordered by the Commission to be obtained b;y th,1t Nae Start,

-J>~I

. ++.-_~_~:_,. :

-(-- ;: -~"'

were e i ther requa9ted or received by- the NRC

• std't~ *And the ff 0

~-

writer seems to h:we been 1nfo!°ffl9d by NRC sttft ;that no such  ?~

Department of State assurances., nor NRC requee,t tor; such DOS *: ~)ii assurances by way of Executive Branch consultat.l on* (Section 123) - ~ ,~~

should be expected to accrue to the official Noor**

present TOPAZ reactor S78to11 import proceeding~ Why is tllis?

of the

. +/-1~,:.~ii Considering such a state of affairs (domestic)~ ; it , is not . :.';');:'~

unreasonable that the 11 public perception" aU~*d ~o supra .. , . ,.i!J_,. -

would be thnt: [_:~J* '

... * <I.

• An effective Specific

• Import License (IR 9_) _wat *never issued by the NRC, the whole TOPAZ import/reexport hassle notwithstanding ,, **

• Is such a public perception cridible or inor9dl~let Considering such state of a!'fairs, as is bri*tlt outlined supra, and the pertinent NRC records, should a reas~na\l* :p,rson be required to inquire further into this matter1 enclo::;ures : John Franc14D&rk*

9101 04 SW*\ Member ot ~blto 910104 IR 907J¢?.

9101 08 11 T*) l*s'H01"

January 4 , 1991 MEMO.RAN Dlll-1 l- on : ,J arncs R. Shea, Di:rector In ternational Programs Office of Governmental an FROM: ~*d rnuel J. Chilk, S ecreta

• i'i LI', ,., Ulii"Ni r* * .

SUBJECT:

• tBCY-90-426 - PROPOSED I 11

'J'O PA z II Rf.ACT.DR

'9l JAN 29 l\l I *40 cc: Chairman Carr commisstoncr l{u~J o.=:!rs commis s jone~ Curtiss Commissioner Ruru ick

.cl.JO OGC SEC Y tJO'.l E:

.w.,,f$

w 11

-lq'rttl!'3till1!-~-ll.!t~ ~ ~ ~'.W':'~'.*!:~~1!~~

.vcr/PrL i U.S.~UCLE~R REGULATORY co~~I S5ION NUCLEA~ EQUlPl~~T !~PORT LI CEN~E 1, ......., .. , ..... ,. ,,... It,.~ ***

...., .. ,.110*1 .... *--n

.s.,,, .. I.H t,eloo, **UOQ*IJl"9 , ... *-*t

~., .... , 10 lht ., .. ,c tlof"tr Act ol IIIW, II -...i.G , '"" Tltl* 10, Coot of r,.,.,.1 .f"l'llall~** * ( .ll)Wr I,'*" 110, 1 11,

.... ,..Prtl .. *UII~~* M<la: 01 119 ll<tOIH I* 1"- *l>PIIUIIOA r-eltr*nc9d t.1 ... ,

tf.l!llj *"'1 .. , ~*-10,7 C.-i.1lon - or ...

of ... ,, .. , I',~,,...., ** OCU>f"<leftCI wtU, IM H**-

r~ 1, H<MU It l*bJKt 1.o 1\l IPl>llt.Ole NI

,.,tt,, '" .,,..,, .... lO **'1 <4'141\IOft\ *~*tt..s MlOW t.. .,.... S~,ac.e PO"<tr, Inc.

IR";0002

~M4- 6ZL River Oak1> Pdrkwa;*

Sa~ Jo*** CA 95\34-1907 AttJH Edl't~rd Britt I . (ow111ry wh*~t al'l,;°i., 7* ruant i ty and type of equ t prnent I I

'"*"' o,iaiil11u*

One (1) TOPAZ II reac tor* *; y:; t,~111 wi th a des i gn power Un i on of Saviet-level of 6 kW(e lec t ri~} . fu r exhi bi t purposei at Soc i a li it *epubl*tcs the 8th Space N1.1d ear Pow,~r S}'T'ipos i urn i n

______. .,. _____,_______________ . *~---~---------'I Albuquerqye, New Mexi co on Janu~ ry 6-10, 1991.

One ( l l TOPil tr' ~iactor system with. a des i gn pow~ r lRvel o f 6 kW ( electric).

The syHeru '$ !.! ~f contain th<! fuel, moderator, Or' co,) J.rnt.

I

1. TnQ ruc:tor syste:'!I wi ll t>e under custod i., 1 i:onti"o l of Sc.1nd1a Nationaf labor3tory, Albuquerque, New ~~x1 cu ~hit h has been II authori *t td to* receive and possess this equ i p*r.eot. I 2, This license shall become effective onl y up*rn written acknowledge-m~ rit , ~y an authorized representative of the Un ion of Soviet Soi;ial h .t Republics, that any expo Ft from t he Uni t.ed States of the II TOr./,Z Ir reactor system must meet the requir~!nent-: o f the U. S. Atomic Energy ' Act of 1954, a~ amended . Under the l .Jw, ,, t present, these r~qufrement s include the need for an Ag reern~nt. for Cooperation in t~l Pea,eful Uses of Atomic Energy.

I

/l l/l l/ /l / lflllll/lll/ll//llll l / //l / ENDl! //ll/ll l!l l l!l//!I//I I/II II IIII/I/III/I Oa t* at Applkat(Ofl'.:*Occembec 28; 1990 Da te of Iss11ai,u January 4

• 1991

TO WHOM IT KAY CONCERN Thi* will confirm dlaou**ion* with Mr. Richard L. V*J:19& ot th*

Oepart~ent o~ Detenaa, and ot~, that were held on J&nuery 6, 199:11 COJ\C&~µi-g th* emthttjcm or a ~*.i. ~1~ *t tht-. ath

• S*Y mPC>>*l***Clft **pe.eo ikt~. .t'- PoWer ~*t-.:

• in* ~tba* -c;QQr5a 'Dt'**1:teqa *

~~:1~i=~~::;::::Jf, -=tu~r~4.~~:- 1 the U.S. Huc1*a:r 1r,,gu1*tory Comais*ion. '.ffi* ticaa.e

=t::f:~~~; -

atipulat~

that pureuant to the terms o~ the u.s. Ato=i0 EneriY Act or 1954 any export ot the subject Topat It device from th* United Stat**

woula have to take place in accordanoo vi th the termm or an

~ppropriate agreement for cooperation conoern1ng the peacetul u~es of atomic energy. I have noted this clause in. the U.S. NRC license and 5hall call it to the attention of the interested authorities in the USSR.

It ia also my understanding that Space Power, Inc:. intends to pursue the questions o! the proposed export conditions turthQr with the U.S. NRC, sinca the subject device not only is non*operable but cannot be made operable under any reasonable conditions.

// 'C ,*.

tff4- o 9. o I .9 1.

~:,

~

)_

I

\

OOCKEiEO USNRC UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 "91 OEC 19 P4 :12 October 18, 1991 OFF!CE OF ~.ECRJTAR,X QOCK[* ING l< Sr 1tVI Cf.

JRANCI-\

Mr. John F. Darke Box 703 Copper Queen Station Bisbee, Arizona 85603

Dear Mr. Darke:

This responds to your letters to the Nuclear Regulatory Commission of June 27, July 17 and 18, Augusts, and September 19

& 30, 1991, concerning the importation of the Soviet TOPAZ II reactor in January, 1991 and the amendment of NRC's export regulations on May 31, 1991 to facilitate its return to the soviet Union. I understand that you have copies of the relevant documents from NRC and have discussed your questions with various members of the NRC staff.

Below are the answers to the questions you have raised in your correspondence with this agency.

6/27/91 Question: Upon what technical specifications or equivalent factual basis was the amendment of 10 CFR 110.2 based?

Response: The TOPAZ II reactor was shipped to the U.S.

as an exhibit; it was necessarily classified

• as a "utilization facility" import because it was capable of becoming operable in the u.s.

assuming the availability of the nuclear fuel, moderator, coolant, etc. At the time of the amendment of 10 CFR 110.21, the TOPAZ II reactor had completed its exhibition in the U.S. and was becoming a matter of serious concern by both the U.S. and the Soviet Union if it could not be returned to its owners, the Kurchatov Institute of Atomic Energy.

Because the TOPAZ II "reactor" had come no closer to operability in the time it had been in the U.S. (it had no fuel, moderator, coolant, etc.) and the U.S. could assure that it would not become operable here prior to its near-term return to the USSR, the Commission promulgated a regulation which "reclassified" that particular TOPAZ II unit, 0

determining that it was not a utilization facility and therefore could be exported without an NRC export license.

- I c::x:

John F. Darke 2 7/17/91 Questions; Does the act of importing the Topaz II reactor under section 104d. of the Atomic Energy Act result in the application of the prohibitions of section 57(e) which bar the use of SNM produced in licensed facilities from being used for nuclear explosive purposes.

Response: The purpose of section 57(e) is to prevent SNM produced in commercial power plants operating in this country from being used for the production of nuclear explosive devices.

TOPAZ II is not a commercial nuclear power plant and it did not produce any SNM while it was licensed in the United States.

Therefore, we do not believe section 57(e) is applicable here.

7/18/91 Questions; The "technical call" suggested in the NRC memorandum of Dec. 24, 1990 from W. Parler to

s. Schwartz, the "technical judgement" requested in the NRC memorandum of Dec. 26, 1990 from s. Schwartz to J. Taylor, and/or the "technical determination" referenced by or embodied in the NRC letter of Dec. 28, 1990 from R. Hauber to Major General M.

O'Neill of the Department of Defense were based upon what NRC Records or information received from the Applicant, the U.S.

Department of Defense, Strategic Defense Initiative Organization?

Was the technical determination (supra) tendered to or received by Mr. Ronald Hauber or other NRC persons by word of mouth "in meetings"? Otherwise, what NRC Records document such determination other than Mr. Hauber's December 28 letter to General O'Neill?

NRC Response; The determination was based on the information forwarded by Mr. Schwartz to Mr. Taylor on December 26, 1990. The determination was made in a meeting of NRC technical and legal specialists on December 27, 1990 attended by Mr. Schwartz and subsequently reported verbally by him to Mr. Hauber. Mr. Hauber then sent his letter of December 28 to General O'Neill, reporting the NRC determination. This determination

John F. Darke 3 was also reported to the Commission in the decision paper on the TOPAZ import case, SECY-90-426, dated December 31, 1990.

9/20/91 Questions/

Reguests; In early January of 1991 (the date of actual import is not available on the public record nor appears to be otherwise available to the NRC) the TOPAZ II entered the United States as a "utilization facility."

Between early January 1991 until the July 24 return of the reactor system to its country of origin the TOPAZ II is purported to have been received and possessed by a so called appropriate entity at a United States national weapons laboratory or other sensitive facility.

What was the actual date of import (presentation to the appropriate U.S.

Government Officials) of the TOPAZ II proceeding.

In addition, what were the dates of receipt and commencement of possession of the TOPAZ II space reactor system at the behest of DOD/SDIO?

Does this matter involve an illegal entry or undocumented receipt and possession of the reactor?

Response: The TOPAZ II import occurred over the weekend of January 5-6, 1991 in Albuquerque, New Mexico, follow i ng the issuance of the NRC import license the evening of January 4. (The TOPAZ II reactor was considered to be in transit status until it was removed from its shipping container, at which point it was effectively imported.) The uncrating and assembly of TOPAZ II in Albuquerque required the assistance of several Soviet technicians who came to the U.S. for that purpose and involved a several hour procedure. We neither required nor expected that the import licensee (Space Power Inc.) and the U.S.

organization which took custody of the reactor (The Department of Energy's Sandia National Laboratory) to determine and document a precise time of import and/or the

John F. Darke 4 resulting point in time when Sandia took possession of the facility. Both organizations were represented during the weekend uncrating and assembly process.

We see no basis for concluding that due to lack of non-required documentation of the exact time of importation and of the initiation of Sandia's possession of the TOPAZ II reactor that any laws were broken.

9/27/91 Questions: When was notice published in the Federal Register prior to the affirmation vote which approved a final rule providing for the return of the Topaz II Reactor System to the Soviet Union.

Why were Commissioner Curtiss' comments not published in the Federal Register with the final rule.

Responses: The staff-recommended final rule (SECY 136) was presented to the Commission on May 15, 1991. on May 21, 1991 an affirmation/discussion and vote session was held. At that session the Commission approved a final rule which amended NRC regulations pertaining to the import and export of nuclear equipment and materials to permit the return of the Topaz II Reactor System to the Soviet Union. A notice was signed on May 16, 1991, posted that same date in the Public Document Room and put on audio tape indicating that affirmation for this rule was tentatively scheduled for May 21, 1991. This notice appeared in the Federal Register on May 21, 1991 (56 Fed. Reg.

23,331). The Commissioners voted on May 21, 1991 to hold the affirmation session with less than one week prior notice to the public. A record of this vote was published in the Federal Register on May 29, 1991 (56 Fed. Reg. 24,238). SECY-91-136, the vote sheets of Commissioners Rogers and Curtiss and the Staff Requirements Memorandum tow.

Parler Dated May 22, 1991 which recorded the Commissioners' approval of the final rule, were placed in the NRC Public Document Room on May 22, 1991.

John F. Darke 5 Commissioners comments are published in the Federal Register when specifically requested by a Commissioner. Commissioner curtiss did not request publication. The comments were part of his vote sheet and were attached to the Staff Requirements Memorandum issued May 22, 1991 and placed in the Public Document Room as noted above.

Finally, the text of final rules are not published in the Federal Register until they have been affirmed by the Commission.

S i n e ~~

)Qiam c. Parler General Counsel

DOCKET NUMBER PROPOSED RULE Pl / / 0 r 5bFR.:i_ qe,g-~

\ OOCK£T£D USNRC Chairperson Secretary U. s. Nm~lear Regulatory u. s. Nuclear Regulato~

Commission, as sitting coml'liasion "91 DEC 19 P4 :12 Attentions Chiet Docketing and OFFICE OF SECRETAR Y Honald D. Hauber Service Branch OOCKEi ING & Stfl VfC[

8R.A NCH .

Assiatant Director Exports, Security and Safety Cooperation AND William c. Parler International Programs General Counsel Office of Governmental u. s. Nuclear Regulatory and Public Affairs Commission

u. s. Nuclear Regulatory Commission (NRC)

It has been three (3 ) month6.

The Chairperson has before him writer's August 12, 1991 trans-mittal to the Chair (and other NRG persons familiar With the TOPAZ II proceeding).

Such proceeding is found upon rmc Docket No. 11004)87 (see your RIN )1~0-AD 95 or the public notice of a Final Rule 56FR24662 dated May 31 1 1991 re: inter alia NRC Spec11"1c lmport License IR 9~2 which was proponed to be issued ,January h, 1991 at the behest of u. s. Departffl9nt of Defense/Strategic Defense Initiative Organization (DOD/SDIO)).

The writer's August 12 states in parts "A Staff Requirementa Memorandum dated January 4, 1991, signed b7 the Secrita~1 or the U. s. Nuclear Regulatory conun1a11on, at the behest or the collegial Commission itself, would by way or response to that very same SE0Y-90-la26 1 order additional Executive Branch consultations with the u. s. Depirtmant o? State before on Import license could ettectiveq issue.

"Out of', perhaps, an abundance or caution, the January 4 Stat.t Requirements Memorandum implemented statuatoey Executive Branch consultation requiremants. (See Section l2l et seq ot the Atomic Energy Act, even as arnr,nded by the Nuclear Non-Proliferation Act ot 1978 1 l'ub. L.95-242.)

"The subject SRM, NRC 910104 Chilk/Shea, ordered that certain assurances should be obtained bf the NRC S~a.t~ trom ~he

~* ~* DeJ?!rtmen~ 2£ State, by way or !xecutive Branch consultations, prior to any Implementation of the Section 104 import license.

"Executive BrA.nnh conAult.at1ons 1 Ile were hetre ordered, are not Rn offhand or casual ~rra1r. Such procedures are Btrictl1 delinettted.

11 * *

• the 910101.& NRG Staf! Requirements Memorandum ordered that assurances should be obtained from the u. s. Departlllt!tnt or State that the country of or1g1n of the TOPAZ reactor system, Which was proposed to be imported, h~s been informed ot the problems in granting a section lOud expor~ license required for the return of the TOPA7.J and that, such country has expressed no objections to the import under those circumstances. (See 910101! SRM tor the exact wol"J1ng or the comm1ss1on*R order.)

"At this time *** the public record remains bare ot any NRC record whieh would document thAt such Assurance~ by the u. s. Department or State, as were ordBred by the Comm1ss1on to be obtained by the NRG Starr, were ~1ther requested or received by the NRC Starr.

And the writer seems to have been informed bf NRC Starr that no such Depart~&nt of st~te assurances nor NRC request for sue~ DOS assurances by WAY or Executive Branch consultations (3ect1on 123)

Rhould be expected to ~ecrue to the official record or the present TOPAZ reactor ~y~t~rn import proeo~d1na.

"Why is this? [The question separated here r or emphasis .J "Considering such A AtAte of' a:ff'n1rs (domestic), 1t iR not unrea ...

sonable that the "public perception!' alluded to supra would be that1 "An effective Specific Import License (IR 9~¢¢2) was never issued by the NRG, the whole TOPAZ import/reexport hassle notwithstanding.

11 Is such a public parception credible or incredible?

"Cone1cter1ng such state or af'tairs, as is briefly outlined supra, and the perinent NRC records, should a reason~ble person be required to inquire further into this matter?

The above questions were not intended to be considered rhetorical.

An answer is required by the present Member ot Public in order to come rorward with a petition for a rulemak1ng. The writer, long aRo, notified the NRC or suoh intent and requested prompt, explicit r6sponse. Writer would respectfully reiterate that request.

c.rta1nlJ', cone1der1ng the &Towed intent ot the country or or111n ot the TOPAZ II epa~* reaotor and bearing in Mind a117 subsequent use trh1ch might be pre3udicial to that oount1'7 18 nuclear non-proliteration objectivee, the 10 Cl"'R S0.11 exe11lptions (as such Co""'1.ea1on regulation would 1mpl**nt Seotlon 91 ot the Atolllio Ener17 A.ot ot 1954, AS an19nded) (42 tJSO 2121) would 11carcel.7 appl7 to such an 1mport. P'urther, *111' subsequent reoeipt, poaa***ion, or use bJ' DOD/SDIO or that Def"enee Depart111tnt*a componant*s oon-traotora would obviousl.7 require stringent public accountability at least equiTalent to an analogous NRO 11censed . o1~111an "ut111-sat1on taa111t7" (power or reaearob reactor).

In brier, 1nrormat1on about what went on "behind the tence" at an, national weapons 1aborator7 *or other~sensit1wv~a6111~7 at*th*

behest or DOD/SDIO atter import 1n earl.7Jamia171991 and betore export on Jul7 *2h j'. 19n,. (the period 1n Which the TOPAZ II waa in the United States And "r*oe1ved" md "poaseaaed" by an "appro-prlate entitJ") must be as 11 publ1a 11 or "restrloted" uJ nuclear non-prol1f'erat1on or propr1etal"'7 *cons1derat1ons would allow under the cirouastances.

Considering the above, the question Why 1s th1e7" is round to be motivated by thB tact thats A dorneat1r. import l1oens1ng action persuant section 104 or the Atomic En8rgy Act, as AITl9nded (h2 use 2134), which 18 prejudicial to the count12 2!, 9,r_~1n 2!: ~ 1mpgrt .92!!-prol1fer~t1g~ ~bjectives would inimical to th8 contmon defense and seourlt7 0£ the country ot receipt o~ that import. Andi F~ilure to enforce the lawful conditions o! such a Section 104 spec1f1e Import License (IR 99'¢~2) would be plainly (particularl.7, here, considering the untoward circumstances or the TOPAZ II pro-ceeding) prejud1c1Al to the non-rrol1f'erat1on objectives or the country ot origin ot the TOPAZ II. Ands Such prejudice t,ow111.rd such non ... prol11'erat1on obJect1V88 would be, it tollow8, ini~ioal to the oommon defense s.nd seourit7, and, obviously, the non-proliferation objectives ot the United Stai.s.

J.~r.i-1NJ1Jr,t r1k_

Atti 91010h SRM lahn Frl~'~arke Member or Public Dox 703 Copper Queen Station Bisbee, Arizona 85603

or r,cE OF THE Janua1*y 4, 1991 SF.CRETAnv MEMORANDUM FOR: James R. s11ea, Director InLei::natiuna.l Pt*oqi:.*ams ortice ot Governmental an FROM: Samuel J. Chilk, Secreta f'IJi!LI!: : :,.l!"'il It t

SUBJECT:

SECY-90-426 - PROPOSED I SOVIET "TOPA.~" RF~fT.oR "9\ JAN 29 ~* .4 u This is to advise you that the commission has not objected to the issuance of the proposeu l l(.;t:!11se Lu Spc1<..:e Power, Inc. tor import o:r the TOPAZ exhibit prov i ded that the license contains a condition that it is effective t:o authorize the i.mport only if an appropriate entity has been autnori~ed to receive and possess the TOPAZ reactor. In addition, assurance should be obtained from the staLe Dt:!partrnent that ~he soviets nave been intormed of the problems in granting au ex(Jurt license ror the. return at the TOPAZ exhibit, and that the Soviets have expressed no objection to *the import under those circumstances.

cc: Chairman C~.t-r Commissioner Roger~

Commi ssioner curtiss c ommi~s ioner Remick EOO OGC SECY NOTE: THIS S.RM AND SEC'i-90-426 WILL BE MADE PUBLICLY AVAILI\BLB 10 WORKING DAYS 1'"HOM '!'HE DATE OF THIS SRM

OOGKE~I NUMt:>t:n PB // /):>~

pROPOSED RULE (!j/, FKP- (i"iSj)

UNITED STATES NUCLEAR REGULATOR Y COMMISSION WASHINGTON , D .C. 20555 DOCKE TED USNRC December 12, 1991 OFFICE OF THE

'91 DEC 16 Pl2 :QQ SECRETARY OFF!CE OF SECRFTARY DOCKET1 NG & Sf:i, Vl fT

[3RANCl-i Mr. John Francis Darke Box 703 Copper Queen Station Bisbee, Arizona 85603

Dear Mr. Darke:

The United states Nuclear Regulatory Commission (NRC) is in receipt of your letter dated November 12, 1991. Over the past year there has been a considerable dialogue, both written and oral, between you and the NRC staff concerning the Topaz II reactor exhibit. Although the staff has fully responded to your questions, it is clear that you and the NRC are in basic disagreement over certain issues surrounding the reactor exhibit.

The NRC will continue to refer your letters to the staff for review and appropriate action. However, in view of our continuing differences and the Commission's need to conserve limited resources, the NRC will respond only to incoming letters which raise significant issues not previously addressed in our prior correspondence with you. Accordingly, the NRC has no response to your letter of November 12. Your continuing interest in nuclear energy regulation is appreciated.

ChairperAon Secret,ary U. s. rlm~lear Regulatory u. s. Nuclear Regulatory Commission, as sitting Com"'ieeion Attentions Chiet Docketing and Honald o. Hauber Service Branch Ass1atant Director Exports, Sacurit7 and Safety Cooperation AND William c. Parler InternAtional ProgramA General Counsel Jffice of Go*ernmental u. s. Nuclear Regul&tol'7 and Public Affairs Commission

u. s. Nuclear Regulatory Comm1aa1on (NRC)

It has been three (3 ) monthe.

The Chairperson has before him wr1ter*s August 12, 1991 trans-mittal to the Chair (and other URC persona familiar With the TOPAZ II proceeding).

Such proceeding is found upon rmc Docket No. 11004387 (see your RIN 3150-AD 9$ or the public notice or a Final Rule S6FR2u682 dated May .)1 1 1991 re: inter alia NRC SpecU1c Import License IR 9~2 which was proponed to be issued .January h, 1991 at the behest of u. s. Depart1T1ent of Defense/Strateg1c Defense In1t1at1Ye Organization (DOD/SDIO)).

The writer's August 12 states 1n parts "A Starr Requirements Memorandun1 dated Januaey 4, 1991, signed b7 the Secritar7 of the U. s. Nuclear Regulatory comm1a11on, at the behest or the collegial comm1ss1on itselt, would by way ot respon8e to that very same SECY-90-b26, order additional Executive Branch consultations with the u. s. Department o? State7ii?ore on Import 1lcense coul~ ettectivelz issue.

"Out ot, perhaps, an abundance ot caution, the January 4 Statt Requirements Memorandum implemented statuatoey Executive Branch consultation requ1relQ9nts. (See section l2l et seq ot the Atomic Eneru Act, even as a11119nded by the Nuclear Non-Proliteration Act ot 1978 1 l'ub. L.95-242.)

"The subject SRM, NRC 910104 Chilk/Shea, ordered that certain assurances ahould be obtained b7 t.be NRC ~~atr trom the

~* ~* Dee!:rtment 2!, State, by wa1 or Executive Branch consultations, prior to any Implen,entAtion ot the Section 104 import license.

"ExecutiYe Brllnoh conAultat,1ons 1 11e were here ordered, are not Rn offhand or caau~l Affair. Such procedures are 8trictl7 del1ne1tted.

11

• • • the 910101, NRG Staff' Requ1rernents Memorandum ordered that assurances should be obtained from the u. s. Depart."18nt or State that the countr1 or or1R1n of the TOPAZ reactor system, Which was proposed to be imported, hBs been informed ot the problems in granting a seetion lOud export license required tor the return of the TOPA7.J and that, such country has expressed no objections to the import under those circumstances. (See 91010!! SRM tor the exact wording or tne commlss1on*A order.)

"At this time *** the public record rem&ins bare ot any NRC record wh1eh would document thllt such Assurances by the u. s. Department or StAte, as were ord~red by the Commission to be obtR1ned bJ the NRG Starr, were e1ther requested or received by the NRC Starr.

And the writer s8ams to have been informed by NRC Starr tha~ no such Depart~~nt of st~te assurances nor NRG request ror sue~ DOS assuranc~s by WRY of Executive Branch consultations (Section 12))

Rhould be expected to Accrue to the orr1c1a1 record or the present TOPAZ reactor ~y~t~rn import proea~d1n6*

11 Why is this? LThe question separated here r or emphasis .J "Con9ider1ne such A AtAte or Af'fn1rs (domest1c), tt 1A not unrea-sonable that the "public perception!' alluded to supra would be thAt1

,.An effective srec1r1c Import License (IR 9~¢~2) wgs never issued by the NRC 1 the whole TOPAZ import/reexport hassle notwithstanding.

"ls such a public perception credible or incredible?

"Com,1cter1ng such ~tate or arra1rs, as is briefly outlined supra, and the perinent NRC records, should a reasonable person be required to inquire further into this matt.er?"

The above questions were not intended to be considered rhetorical.

An answer is requ1red by the present Member or Public 1n order to come forward with a petition tor a rulemak1ng. The writer, long RRO, notified the NRC or such intent and requested promrt, explicit response. Writer would respectfully reiterate that request.

c.rtas.ni,, considering the &Towed intent of the countl"J ot or111n ot the TOPAZ II epac* reactor and bearing in lld.nd Aft7 subsequent ue* Which ldght be pre3ud1cial to that oount17'* nuclear non-proU.teration ob3eott.ft1 1 the 10 cnt so.11 exe111>tlons (as such 001111111110n regulation would impl**nt Section 91 ot the Atollio Ener17 Aot ot 19S4, &8 a1119nded) (42 USO 2121) would ecarcel.J *PPlT to 1u0h an import. P'Urther, &Jl1' eubeequent reoelpt, po*****ion, or use bT DOD/SDIO or that nerene* DepartMnt*a _cOMpOnent*e con-tractors would obvioualJ require etrs.npnt public accountabil1t7 at least equ1Talent to an analogoua NR0 l1censed . o1~111an "utU1-sat1on tao1Ut7" (power or researob reactor).

In br1et, 1nrorut1on about what wtnt on "behind the tence" at an, national weapons labDrator, *or other~eenilt1n~ta6l11,1 at'tb*

behest or DOD/SDIO atter import 1n eari, Januar, 1991 and betore export on Jul.7 *2h'j ' 1991' {.the period 1n Whloh the TOPAZ II wae 1n the Un1tAd stat.ea And "re011ved" and "poeaeaeed" b7 an "appro-priate entitr") MUlt be a1 "public" or "restricted" aa nuclear non*prol1f'erat1on or propr1etar, cone1derat1ona would allow under the oiroumtanc***

Considering the above, the queat1on Wh7 1s th1a7" is round to be motivated b7 the tact thats A doffl9Rt1r. 1mport licensing action perauant section 104 ot the Atomic ENtrfD" Act, as Amended (42 use 213h), which is pre3udiolal to the count:a;z ~ ~r1g1n 2!. ~ import !2!!-prollferatigg objectiv*s would inimical to th8 ooftlfflOn defense and aeourltJ ol the 0ount17 ot receipt ot that 1mport. Andi f~ilure to entoree the lawful conditions o! euoh a section 104 5p,c 1f1c Import License ( IR 9~5112) would be plainly (particularly, here, considering the untowaro c1reu111Stancea ot th* TOPAZ II pro-ceeding) prejud1c1~1 to the non-rroliteration obJect1vea or ihe country ot origin ot the TOPAZ II. Anda Such rrejudice t,QWl!lrd such non ... prol1ferat1on ob3ect1vee would be 1 it follow~, in1~teal to the comn,on defense and eeourit7, and, obviou1l1, the non-proliferation objectives oE the United States.

J.f/4;;)hMW(;°J, ~

Atts 910101. SRH

\ahn Frl~~arke Member ot Public Dox 70) Copper Queen siat1on Bisbee, Arizona 8$60)

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ornct Of THf 5f.CAETAR V January 4, 1991 MEMORANDUM :fOR: J ames H. s11ea, u1rector Inl.ernal.iunttl P1*oqrams ottice ot Governmental an FROM: Samuel J. Chilk, Secreta lJ~.;'~'i..:91/2"'~ ~26 -

1

SUBJECT:

PROPOSED I SOVIET "TOPA.~" RF~f'T.nR

'9\ ~N 29 Al .4u This is to advise you that the commission has not objected to the i ssuance o f the proposeu l .l. t..a :!11 ~~ Lu Spc1ce Power, Inc. tor import o f the TOPAZ exhibit provided thae the l icense contains a condition that i t 1s ettect i ve t.o aut.horize the i .m port only if an appr opriate ent i ty has been authori~ed to receive and possess the TOPAZ reactor. In addit i on, assurance should be obtained from the staLe o~p~rtment that ~h& soviets have been intormed ot the problems in grant ing drt ~xpurt license tor the return ot the TO~AZ exhibit, and that the soviets have expressed no objection to *the import under those circumstances.

cc: Chairman C41*.r Commissioner Roger~

commissioner Cur ti ss commi3sioner Remick EOO OGC SECY NOTE: THIS S.RM AND SECY-9 0 - 4 26 WILL BE MADE PUBLICLY AVA:ILA8Lf; 10 WORKING fJAY S l<'kOM 'J.'HE DATE OF THIS SRM

UUvl\t: 1_NUMDcn PR / / {)

-chairperson SP.I>

' JI)

PROPOSED RULE (5 i,, Ff<~ 'I

/

O r;:~"'

"Y

u. s. Nuclear Regulatory ~ . secretary Commission, as sitting ~,.,,: '9/ u. s.- Nuclear Regulatory

• .'8', Oommiseion Attention: Ch1et Ronald D. Hauber Docketing and Assistant Director Service Branch Exports, Securit~ and Safety Cooperation International Programs 111am c. Parler Office of Governmental neral Counsel and Public Affairs ~

• s. Nuclear Regulatory

u. s. Nuclear Regulator1 Comm1ss1on Commission (NRO)

A Federal Reg1ster notice or a Final rule, dated May 31, 1991 1 (56FR24682, 24683, see your RIN JlSO-AD 95) states, here 1n per-tinent part:

"In January l~?l the TOPAZ II reactor system, a space reactor ***

was imported into the United States under an NRC import 11cenae, at the behest or the Department or Defense (DOD), forooo 1nspect1on and study ** 11 0

Here 56FR2JJ683 is referring to a "Section 104" ("Class" 104) 6pec1r10 Import License which . was issued persuan~ ~o 10 CFR ll0.44(b), in response to, or at the direction of, an applica-tion tendered by the u. s. llepartrnent or Derensa/st:rategio ;._'

• Defense Initiative organization (DOll/SDl0) 1 dated December 28, 1990.

(See License No. IR 9~9J9J2.,.found upon the Commission's Docket No.

11004387, which was purpQM,ed to be issued January 4, 199i.)

By.1way or a NRC Starr negative consent policy 1ssuo paper (SECY*

90-426, dated December 31, 1990) the NRC Sta.ff sough~:

"To 1ntorrn the sitting Commiss;l.on 'or the starr*s intention *to ieeue an 1m2ort license to a Department of Defense contractor to allow a *** Uncore thernt1on10 liquid metal(Na.K) thermal spectrum space :reactor;] to enter the u. S."

By way of background, SECY-90-426 briefly reviewed the NRC/

Applicant interaction up to December Jl, and offered pertinent documents. In pert1nent part SEPY-90-426 further statess "The start notes that the importation or a utilization facility does not require an Agreemant !or Cooperation with the exporting country (Section 123 of the Atomic Energy Act), but exportat~on of a utilization facility does require such an agreement."

SECY*90-426 did not inform the sitt1ng Cotnm1ss1on that Section S7e of the Atomic Energy Act of 1954,as amended, (42 USC 2077(e) would apply to such "importationtt , ot such a*'utilization f'acilityo" Writer has informed the NRC of his intention to mitigate the ef.

reot, of such overs1ght. (See writer*s 910505 attached.)

It I may, woul~ request that w~ichever .prooedural exemptions are appropriate, or . ~ecessary, _t,o *. aosure that *=NRC ettectively review, a*nd f'ully, explicitly respond to *writers submittals

• 0£ Jul:, 17, 1991 and J'~ 18,. :1991, : be granted * .. *Whatever it .

takea (to make be~.~;., use of

• the :t _ime and resources available),

• II * * *:.,,, ,t' ' o ** I The writers July 17 was. addressed ,.-tQ **:Mr. Ronald D. Hauber (GPA/IP) ..and Mr. William*: Parler, ~ ~squire '.;~(OGC) ! * ( see MOP .910717 Darke/Hauber & Parler). * * .:*.. :* . ::. * ;t*-:. , *... ** *. :**-:-.: :*:; :*

0

• * *, * * * * * ~ ..  :--,~*: / *:i: _; ~ i~j:':~*1  :**' >

i: \ . , *. *

• I

• Writers submittal ot . July 18 was .addressed '~ to:~Mro Hauber* and ',

additionally to Mro James Taylor (EDO) (see MOP 9107Ji! Darke/

Hauber & Taylor) o . .

. : . **. \ < *: *. *.\!.

'! l \ ,1 * ;* ' t *: I 'i :., *~*

such NRG persons *having been associated *in *various capacities with the import *11cense issuance ot ~o~~ern. -:-'>* *. *. * **

• I ' ... I BACKGROUND Briefly, the writers July 17 *s~bndttal claims. . that Sect:lon $7e of the Atomic Energy of 1954 even as *amended stated clearly' that any apec1*a1 .nuclear material * (SNM) produced

• in a :* reactor licensed under *section loh o! that .act cannot be utilim~d tor *

• .tnuc lear explos1ve purposes" *

• I * * \~ , * ,~

.- . *,t:;,~.f

,'

• I )t

'. :t, ..; :.~*. . * .*: **'*

• ' I

• o ' I .. * * '

• I *

• I ' \

• 1' ~ I *

• I

• The writer, 1ntending to ba re1pons1ve .to *alll' consideration .

ot the appli9ability* of such

• statutes *,to .* the:-1mport at issue **

and the contextual basis or such *tatutes! i, applicability here, of'tered that *- a Section -104 license as

• is *. speoificall7 ad-* . *..

• dressed by Section S7e, ~as precipitously issued b7 the *NRC on Janu&r7 4, 1991. * . . < ..'.. .~.-:* .. ~ : '. . , ** *. .

• I * * ,,, *f ' *,,*

I * ' I The

• wr1ter*l*a July 17 states rurther *~hat ' sueh ispecUic Import License IR 9~~2 actuall7 .was, . \\\issued by* the . NRC, responsive to an application

• submitted on December 26, :- 19901 however var- *.

iously aml9nded., -b7 the u. So Department ot .Defense/Strategic i' De.tense Initiative Organization (DOD/SDIO.).* *.*:. . . .. *c.e ~ ?

. ,, ' . * ~ Y._ ,

More importantly, such MOP. 910717 asserted that su,cb NRO im*

• Y port 11oense was exped1t1ously**1ssued to permit *a concurrent * .v's-import ot a Section 104 reacto:r,

• a reactor that

• is specifically ~

referenced by S7e or the Atomic ~nergy Act ae amended.

. 7

The writer's July 18 (which find attached) refers *to a .11Memorandum

.rors Sheldon A Schwartz, Deputy Director, *ot_!1ce o:t Governmental and Public Affairs; From& W1ll1arn c. P~rle_r, *General Counsel" which reflects a conversation w~~~.Ji~l~-! s~*about_TOPAZ II. (~here1~

NRC 901224 Parler/Schwartz) * ,.'~. .- * . *.'/ .

Ands A "Memorandum .tors James M. Ta;ylor, Executive Direotor *ror operat1onsJ From: Sheldon A. Schwartz, Deputy Director, Office of Governmental and Public AffairsJ -SubJects Technical Determ1nat1on .

Regarding Possible Import ot Equipment" *(NRC 901226 Schwartz/l'aylor).

• ' * ** ,1 *\

And a The writer's Jul7 18 further makes r~f'eren~e to a *

• 1etter to Major General Malcolm a, O'Neill USA, Deput1 Director, Strategic .....

Defense Initiative Organizati~n, Department ~or DefenseJ troma Ronald D. Hauber, Assistant D1rector,,Exports, Seoµr1ty 1 and Safety Cooperation, International Programs, orr1ce *or Governmental and .

Public Affairst u. s. Nucl~ar Regulatory Commission (NRC 901228 * .,

Hauber/0 1 Neil1J, * . .....

The wr1ter*s July 18 sought the bases *1n tact and/or law as reflect9d in NRC Records ot the "techntcal call, judgement, or determinat'fon. * *"

ii"lu3ed to by the above l1st,~d NRQ :Records. ;*..

, f I ,

The N~C has not responded 1;io _th~ wr1ter*s July 17 and 1.8 (~upra).

, ,l *1 , *., ,'

• I Writer would respect.rull.y reque8t _th1Jt,:;t~J~~9.~~,~,<ap~ i,ex::- 1 plicitly I respond to the ~ite~{.!,.:_],.~gy.J.7~~d..i,l8;~-- ' * ***-~*-*"*

. . .  :~

John Francis Darke em r t.~~~i~ *

~isbee, 0

Attachmentss 7 0 ~ Queen Station As stated Arizona 85603

~. ~-' .

....... :,.~* ,*,*J **,* * ** *, -~... _.,.,,~:"-- *>: -~**,*,- '*:"** *;;~~-~ ......... : __,.... *~** --;.*... ~ *::. *.~-*,--..~.~-~-'.~* ~:;'\****

John

• Francis *Darke **.* * **

Box 703 Coppe~ ; Queen Station

• Bisbee, ~zona 8$60)

\

Ronald D Hauber Assistant Director J~*a M.** 'l'a7lor .

Exports, Security, and Bxecutiv. Director Satety Cooperation * . .* of. Operations International* Progre.ms .* 7 ** ~ u. s. :Nuclear *

• Office of Oovermaental -and .* . .. Regulatory Public ~£~a . Commiaaion

u.

• s. Nuclear. Replator, , *

• Comm1aa:l.on (NRC) f *

• t o I .. f The "technical call"* augges"9d b7 NRC 901224 Parler/Schwartz (attach 1d ),* the "tecbinical

• jud1e._. ,

1111tnt 11 n9ueated by NRC ~1.226 *s~hwart,/Ta7lor. *(alao at~ach I d J,* and/or ,the techn1oal determination refer-*

e.nced b7 or elllbodied

• b NRC 901228 Hau'ber/0 *Neill .. , *.

was *-based upon what*HRC Records *or -1ntormat1on*re-ceived *trom* the Applicant, u. s. Departaaent ~ot Defense; Strategic Detenae Initiative Organization?

Was the technical detemination (aupra ): -. tender 1d -to _.. . ,

or received by- Mr. Ronald Hauber -or *other NRC persona b7 word ot mouth "in met1nge 11 ?:. ~ otherwi.ae,

• what* NRO ). 1 Records document auch *determln&t1on~other*than -

NRC 101228 Hauber/O'Neill (al.So attaoh*d)? *

. Would be pleased bJ *

• prolllpt** expl1C:l.t repl7. Peace*

,,t I

.. 7 .. ..

.\ DCS/NUDOCS Please Aon.

~

• Attachments lj -:Z,,._, -,: **' ..I,

,II I

RUG 27 '91 lli57 NRC WF 15B138 P ,S

.,i.

~

i '

A lfCJrIOS 01' INT~ TO Sl~J[fSRMISs;~ TQ APJJY.lfltal Jlli I

~ '. .

90MqSS!0I 1! JE~S~Y, '-t J! .T~ ~ J u lt** ***.

I COLl&G¥L A ,Mc1tta& or Ilff~ TO ,xr.r, -~ 1rr1.1-:1,(!. OIIAftlll .....

. I aff&k Jc !!f!ff_p*t.o1.: liJ~~~*.A!IMm:! ' !,...l~O~OJ'~~~~~~IUI'

Chairperson Secretary

u. s. Nuclear Regulatory u. s. Nuclear Regulatory Com~ission, as sitting 4'1l..\ Commission * **

.. *~*w" Attention: Chief Ronald n. Hauber

%~(l 'L Docketing and Servi~e Branch A5sistant Director Exports, Security and -

AUD Sa!'ety cooperation William c. Parler International Programs General Counsel Office of Governmental u. s. Nuclear Regulat and Public Affairs Commission

u. s. Nuclear Regulatory Co!lllll1SS1on (NRC)

The Chairperson has betore him writer's September 6, 1991 trans-rnittal to the Chair (and other NRC persons familiar with the TOPAZ II proceeding) o ,

Such proceeding is round upon NRC Docket No. ll00b387 (see your RIN 3150-AD 95 or the public notice ot a Final rule 56FR24682 dated May 311 1991 res inter alia NRC Specific Import License

• IR 9¢~2 which was proponed to be issued January 4,. 1991 at the behest ot u. s. Department of Defense/Strategic Defense In1t1at1ve Organization (DOD/SDIO)), .

The writer's Sep~ember 6 1 in passing, by way of background, statess "In is.rll Januarz or 1991 (the date of the actual import is not avai abl* on the publicr'ecord nor appears to be otherwise avail~

able to the NRC) the TOPAZ II entered the United States as a "utilization facility".

During the interval., from early January or 1991 until that July 24 return or the reactor system to its country ot origin, the TOPAZ II is purported to have been received and possessed by a so called appropriate entity (behind the fence, as it were) at a United States national wa&'(>Ons laboratory or other sensitive tacili ty *" (Emphasis added. ) .

Going to the May Jl public notice {supra) the writer only tinds auch vague nrerence ("In r ..*

• Januaey of 1991. *

• 11 )

• The aotual date of import (presentation to the appropriate u. s. Oovemment Officials) is not found upon the public record of the TOPAZ II proceeding , And: Writer would request that such date ot actual import appear on that record.

The, date o-r receipt, and commencement of possession, of the TOPAZ II space reactor system at the behest or DOD/SDIO likewise fails to appear upon such record. And: Writer would request that such date(s) appear on the public record, Iu the writ.er approaching an illegal entry or and posseas1on at the behest or DOD/SDIO~

uniicurr1mt8J

• ~ 1 ffai1:t

. John nc ~ Mem~er of Publ , Cop r Queen Station Box 703 Bisbee, Arizona 8$60)

..:."~

Il I I ll Sign11'1cantly., here i*t'.,should be noted that 'the May .31 public notice (as supra S6FR24682; 2468.3; see your RIN 31SO-AD 9.S) onl7 would otte1 that Sandia National ~boratories, a prime contractor, was exempted from facility license requirements f~r, perhaps, other purposes (by .

l:RC regulations 1n 10 !CFR 50.ll).  :-' . * . *:/' * * * . _

Beyond such an ambiguous ' citation, such. May 31 public notice would not dare to even propose that such "prime contractor 11 was actually or speci1"1cally- exempted ;(or *-properly . authorized) with respect receipt or possession (or even _use) ot the *. TOP~ -~I . reac_tor s,atem.

And: The public rec~;~* o~ the TOP~ I~- p~~~~ed~ *is bare o f ~

substantiation that s~ch "prime contractol"_" was 1n fact an appropri-

• ate (exempted) entity *.which had been prope~fy authorized to receive and possess the TOPAZ ;II. *. (And: the writer would seek remed in If t,1.1.f'- /ifZ ~'. , Momber ot' Public

• • • -**----**~*-..---*--~-I*-*-*--*-*-*----******-*****-*-**-*** -*** --**-*** * *- * * -**"' - ... . ,. ... ... *

~

• S6FR24683 *:r ,,. lays out Section 101 ot the Atomic Ener11 Act ot

~ ,_. " 19S4, even as a111nded (aee 42 USC 2131), .which holds thats

• • . * * :,, , ;. * ~ ** **-~*i *r * .* .:** 1i*i *. **.! ! * * * .._ . '*.

"It ahall be unlawful, except as provided !!l section this title, tor &111' per11on witiiln the United States to transfer *

• nn of or reoeift in interstate commerce, ** manutaoture, produce, ~ra.J}~.- .

-r,,:: !.*r., *,nav.~.., -heae11,\uee, import,

• or export &IJ1' utillzaiion .

• *.* or**proauct1on acillt7 *except under and *in accontanc**:v1th *a * .

~\: license . issued by the Col'llllissioJl* pursuant to section 2133 *or 2134

• • ~t* ot ..thia ._titl*.~ .. (Blllpha111 added.}

    *. 1 1 ,;* o *: !.. i*:*,t*: . i. ' : -;ft :_.

• I O I****

• 0 ,0 ~: 0 0 **

• '.' Note that *the reteNnced sections 42 USC 2121, 42 USC 2133, and

... 42 USC 21.34 refer to, and should be considered (tor the purposes

• x herein considered) equivalent .to Seotio~ 91 1 103, &nd 104 ot the * * *'

..< act * ..(42 ,.use 2011 et aeq) . _* .*.!. :- *... _.. *. _, * *

• .~'.  :* *

• I *!

..:

• Such ' Ma7 :31,* 1991 *Fede~al Ragis~r Notic~ then goes to Section lOb ot the act (see 42 USC 2134). which actual.17 holds that (in

• pertinent part) I * . . '

"No license under this section may be given to &Jl7 person tor actiri.tiea which are not under or within the . juriad1ct1on ot the United *states.** In I.J1iT even, no license may be issued to &IJ1' person Within the United States u, 1n the opinion ot the Com-mission, the issuance or a license to such person would be W.m- **

ical to the common detense and security qr to the health and

.';; a~*~T ot the _publio*"

• E, ;'i.9 * *'.\ ~w.,J- *

., .. . 0 81'/'itJ. .

DOCKET NUMBER Pl / / D PROPOSED RULE ..:,_ " ..

(_f h r:~~'I ,r~

~ ---------- - --- ---

~

UNITID ITA1 NUCLSAR REGULAiOR' Attention* Emil* L. Julian, Ohiet Docketing and 8enioe Bl'anoh~- us K

',~ . WASHINGTON, 0.C!

Per your 910627 request please f:l.nd1 /~~

August 271 910627 (w/o att.) 910717 910718 (w/o into OFFICE 01 'tH&

HCIIU'AIIV  ! *ion o~ port and 910812 (p. 3 ot 1 d~ttaohnlenta)

"* braokets added &.' \

Within quotes, other* ~~ ~ ~

wise, 7ou have 910812 I'\.~ ~

Mr. John Francis Darke as addressed to the ft...~ . A. : ,

NRC Chairperson) .. P ~

• Box 703 copper Queen Station anoia ar Bisbe*, Arizona 05603 In o~d~ fo~ ~**ponsible commtsaion ofticas to raviaw your letter of Auguet s, 1991, it is necessary ~hat copies of the c:orreapondenoe you rater to in the laat paragraph ot your let.tar of that data be provided to the Collll'lliaaion. Speoitically, the lett*r*

4ated 6/27l91, 7/17/91 and 7/18/~1. Plaas* tax or send oopiea of th*** doouaent.a to my attantion aa soon as po**ibla. Should you tax the document plea** tax on 301*4i2-167a. ...........i--.---

4 Oincerely :,o\.lJ:"B, ~ *

• oocKEiED

~-4 ~. AUS 2., 199 1

Emile L. Julian, ch1et t)OCKETING&

Oock~tin9 and service Branc SER'llCE BRANCH SECY-NRC Atta~nmenti Dorke letter of 8/5/~l II - ****-***- * **-

--* -*- ________......=.-;;;=...----,

Johll Darke

. Box 703 Bisbee, ArllOD&

i 65603

.il Ae1d.etan't Director tor*

Jlxport~ and International Satepal'da

u. s. NuolAar Recul,atory Conmd.a$ion Waeh~n.-D. o*.

20SS5 Per OUI' oomereaUon or 910627, would Napeottulq' aublli~ th*

Eollov1n& lOOFR 110.4 Inquirf*

Final~ amen.din& lOCl"R uo.2 (S.* 56J'R2468J attaoh*d.)

wu hued upon what toohnioal epeoU'icationl (or eqUS.T&lont

lo.otual basta)?T??

• \

I *I

_John Francis Darke

~ox 703 Copper Que&n Station Bisbee, Arizona 8$60)

Ronald D Hauber Aosiatant Director William O ParJ.e~

• Exports, Security, and General Counsel

• Safety ,Cooperation * ** AND* -. . u. s. Nuclear

• International* Programs. *-** ~ * .. Reguls.tory ottioe_ ot Governmental and * : . Commission Public .Affairs *. * . . .

u. s.

• Nuc~e~r ~egulato~ Commi~sion (NRC) *  ;/

~n'ERs 01> i:lii"To'BP/ coiislDERED *: .' :'J 9 c * .* f

• t:

S&ction *;; pt_ :oad.o E~~;kt *ot(19s4 ~~ ~nd~d ;J~J , _ *

(hereafter, the act) ( see 42 usc*2100 et seq. and spa- JI~,~

cUioally .42, USC 2077e) states clearly- that special* ~ ~...,

• nuclear material (SNM) as ~etined by .the act (at l ,a/see "I,.~

• 4i T)SC 2014) produced-in a reactor licensed undei- Seotiori 104 of the act (see b2 USO 2134) can not be ut:l.litsed tor .

• 11 nuolear explosive purposes 11 o - -

• I

..

• r

• MATTERS Q!. FACT !Q !!., CONS~~~ . *., ,*.

Th~' -NRC 1asue4 . ttuch *a Section 104 .11ce*na~ *. ( Specific .Import

t4c;ense . IR 9m2) on Januaey. 4, .1991 at* the .behest of an .

,pplicat1on aatla-~f the U. S~*Department*~ Defense/Str~-

1 tagio Detense.-:tm.tiative Organization (OOD/$DIO)*for the section*

,7 import ot* such a reaotor .tacility &8 is contemplated 'bi :* **..

ot the* act.;* *.

' ..... ~ l l ..

• *, -~.

• 1 ., '

.* j * **

,.. And turther. *s~ch a ..f'aoUity ~*capable**of producing*:

• and* ut:llim!nl

• such SNM as is con~'!'P.~ted ,b7*_tbe

• pr~~1?1tion(s) se\~torth !ntbe act (supra*). * * *. . .. 1 * * * -

li' .. * ' ' * * ' ' ... ' , ._ 'I An,d*.'turtlie'ro**_ Such .amt where-*proc1uoed -~r :'ut11iied by such a' tacility as was *.here ~ceru.ed,;urict*r**Bection 1Q4 .or*.tu

. ac~ tor import,* . .. . .: :ts *~a:eable ~t subse~ent* use ~

any*.other person for J'.l'UOlear explosive!purposes.

• ' l t t I I

,~t'-

\,.

And turtber.

such subsequent use*. ("end use") is ~pecU*

ioally' prohibited by the act reaardless. <**owithout regard for or in spite ot, objections, ditf'iculties, etOoJ ,

anyway) , . @

---

or OOMreNTS AND QUESTIONS BY A CONCERNED MEMBER OF PUBLIC I

Oortainly, the "!1ne print" t o t

Specific Import.License

• IR 9~ muBt have required uninh1b1ted*aomplianoe*Vith the aot and the NR0 1s Ngulaiions which ituplement such \

act, even as subsequentl)' am.ended* , l

, ' o '

1 ,14. .. I And notW1thatanc:l1ng the .tact that SNPS TOPAZ at. import*

contained no tuel, moderator, or*coolant*and vaa prof*

tered by other peraons to~ peaceful purposes,* the present member of public has ~wu}ueationa c Bearing in mind tb,above MATTERS OF FACT*AND LAW" and l'

• ~COMMENTS", did the) ~anuar, 4, 1991 licensing f'or import purposes under 104-.. or the act* of HSPS-TOPAZ, at the .be-

.best ot DOD/SDIO, place *a lhold .tag" *or othe:r*enoumbra.noe, 1

with respect to*.nuclear*explos:lve purposes, on anJ' SNM auoh taciltt7 could !!!_ cap~bl,e 2!, produ~~g 21:. utUiaing'l Subsequent to the 11auance or Spec1t10 Import Lictnae I R ~ on*January.h, 19911 ~*a*the*p1rmltted end use

• ot &117 *SNM which that SNPS TOPAZ, even as retrofit, .. ld.ght produce or ut111n oircuuorib*~l S?e supra or the * .

1IJ act? . **j**~* ~ . t,1iM And *ll1011t 1mportaiitJ.y~ider1iic the abofl i * **re all * ',?

persona that had *a ,<11.reot -interest in such NRO _authoriud <'

import under lOb:/of the. act *l.nf'ormed ~ ot nch *ciroum- * * .

scriptlon, or the possibility ot such *oirowmsoript:Lon_. Jn;(Nt

• considering ~ .Section 91 ~~~~L~see h2 UaQ 2121) s~r11.:;r1,a;

• rv -

r* - /

b7*t11e HRC? r_µt 11erre. PJ,11 M_ "&tilf"'t

- *

• l ~

\

Would be pleased with a prompt consideration ot the \

above and a prompt*explioit repl.7 to the questions offered* Peace.

• page 2 of 2

__ IL ______ _

. . .. *,, .. *~ ,. ..

John* Franoia

• Darke **

Box 703 Oopper:Queen Station Biebee, Arizona .8S603 Ronald D Hauber Ass1atant D1reotor J&IPlls M.- Ta,lor Exports, Seour1117, and Exeovtive Direotor Satet7 Cooperation* . of* Operations International Programs. **

o.tf':lce of* Oovefl)blntal and

• Public At.fairs -* ** , ..

AND u. s. Nuclear*

Regulator, Ooaid.esion U. s. Nuolear *Begulato17 *

• Commiaaion (NRC)

• I '

The .'*technical oall 11* suggested by NRO 901224 Parler/Sch1fartz (attach 1d) 1 the *~tech1n1cal* judge*-. ,

me,nt" requested b7 NRC-~26*schw~ll'&J'lor (also at,tach

• d ) ,* and/or ,the .. techl'lioaJ.

• detend.natton reter-*

enced b7 or embodied ilJ. NRC 901226 Hauber/0 1 He1ll ", *.

was*based upon what*NRC Recorda*or-1ntormat1on*re-ce1:ved -rronr the Applicant, u. s

• Department

• ot

• _Def'~_ns~,_ ~tratep.o Dete~e In1t:Lat1ve organization?

Was tba technical. determination (supra) tender*d to or received bf Mr. Ronald Haubef or other Nao persona b7 word or. t'IIOUtb "1n meet1Jlgs" ?:*~* otherwise* what

• NRO Reoords documnt* such *datermination-*other *than.

• NRC 901228 Hauber/0 1 Ne1U (also attach 1d)?

. Would be pleased by a** prompt. exp~it reply* ~ac~

• j DCS/NUDOCS Please Aon.

~

• Attachments /; ':P ~

1 I' r

• * ,J,

• ROUGH* PARTIAL CHRONOLOGY 901221 No m1attng eunmsary seems to be publie-:--av.~ble.

However, there ia a 1'handou~* descriptive l P* NU "The Spao* Nuclear*Power System SNPS *topaz****"

Which was prortded to HRC during 111Nting on 12/21/9().

with Sam Bassett. At this point understand s. Baaeett to be usociattld with w. J. Sohater,.A.eaooiatee* Inc.

w*. J. SChater Associates Ino. 1a wry probably- a U, s. Department of Defence/Strategic Deteno* Initiat:lft Organ11ation (DOD/SDIO) contractor.

Understand 901221 meting not attended by BRO L1Cens1ng person (B. Wright).

~ P* "handout" ret*d b7 NRG 901226 5chWartst.rql.or (SH

~ov)1 * *

", ** haw also attached a one page description ot the TOPAZ Vhich vas aepara;tely' pron.dad to us. *t ADDITIONAL NOTES&

UNfT&DSTAT&S NUCLEAR AEOULATORY COMMISSION WASHiN01"0,., D, C. toall December 24, 1990 MEMORANDUM FOR: Sheldon A. Schwartz, Deputy Director ort1ca of Governmental and Pub11c Affairs PftOM: W1111u c. Parler General Counut My conversation w1th Stck*r re. sov1et import amounted to this:

If th* 1mport1 were a model and from teehn1ca1 standpoint could not ba madt to produce or ut111zt SNM. than l would think we would not be dealing with

• production or ut111.tat1on fac:11ity whtch must ba licensed.

• Whether or not the thing to be imported h&i or does not htva such

• ~apabfl1t1as is a technical not 1 gal-Cl~-

. ... ....... ~

L.~ FO::~P'-.......~ *v--~

('

.t/,"'< wn 11 Ml c. Plrl er t ' Ganera1 Counsel

MEMORANDUM F * ~lfflleS M. Taylor Execut1ve 01rector for Operations

• FROM* 5n nMAU<111A...,..tbl:.blli~~-*p.jty11y,*-8i"1l'f'rfTrfi Oftice of Govcrnment11 end Public Affairs TtCHNlCAL DETERMINATION REGARDING POSSIBLE IMPORT OF EQUlPMtNl

• Attathed 1s a letter oated.Decem;er 24* 1>>90 from tha Dep1rtrntnt of Oef!nse

• • . . : $trateg1c oerense 1n1t1at1ve or-gan1zat10n r1;arC11ftg arntry into 'tt'le u.s. Of

• 1 . ,** a TOPAZ .r11ct0r.system for exhibit at the 8th Space Nuclear Power S.YIOOS11.1ft

• • 111 AU:u1querqu1; New Nax1ca Am Januar,y 6-10,. lVil.

8afor* " *c*,~ clbtet'111ftt wttetMr *IJl* NRC *t11Pari *.i1cenM .11 'l"eQutncs...-1 citeC:

1our technical judg8'11\8nt as to whether tha aqu1pm1nt described in the attachment meets the daf1n1t1on af a ut111zat1on fac111ty as def1ned 1n 10 CFR Part 110.2.

1 h*v* a1so attached I one*pa;e de5cr1pt1on of the TOPAZ which was separate1y prov1dtd tp u, *

• * ... Attaptnnents r

.... ,, 2 9 .af':'.sUted

\,

• J PJSTRIBUTlON1 GPAlrf /

8Wr1,'1t....,.

IP r f I l I I

• ~ .... ***************-..........._.....,,M.,-,;;.**~****..*~*********..*******.....,..*****t********************~---

NAME t8Wr1ght1ts

Diti 2 8 1990 Major General Malcolm R. o*Netll USA ri,puty Oirector Strate<l1C Oefanse ln1t1at1ve organ1zat1on Dep1rt1111nt of Defense Washington, b.c. 20301-7100 Dear Major Genera1 O'Neill!

In response to .vour 1attar dated Dactmber 24, 19go regarding the import of a TOPAZ reactor systim from the USSR for exhibit at the 8th Space Nucl**r Power Symposium in Albuquerque, Hew Mexico on January 6-10.

1991, thts ts to advise you that the Nuclear Regulatory Commission hts made tha t1chn1ca1 dtt*rm1nation that the TOPAZ raactar system, as d11cr1bed in your latter and attachment mo*t* the defin1t1on of a ut11ttat1on facility 11 defined 1n *the Atomic Energy Act of 1gs4, 11 amtndad, and 10 CFR § 110.2.

Thi import af a ut111zai1on fac111ty 1$ undar the jur1sd1ct1on of the NRC *nd would reQu1re a specific import ltcansa issued by tha NRC or an exemption authorized by the President under Section 91 of the Atom1~

Energ,y Act.

• Wo 1911n.w1sh to remind you th1tt 1f an import 11cense ts requestad by DOD, and issued by the NRC, tho OPAZ reactor aystem could not be reexported to the USSR under Section 104.d, of the Atomic Energy Act ol 1964. dua to the absence of an Agreement for Cooperation between the two countries.

further, 1f you wtsh to lpply for I spec1f1c 1mport 11censt from the NRC, plaasa advise us whether or not the un1t to ba imported contains any rad1oact1v1ty and, 1f it does, p1aasa specify the types and leve\1 of th1s rad1o*et1v1ty.

P1**** ca11 me on (301) 49Z-0724, 1f you nttd further guidance 1n this matter. ,-----

r

' Sfntare11, I ff{.1d D. Hauber Assistant Director Exports. Sacurtty, and Saftty Cooparat1on International Programs Offtce of Oovernmantal and Publ 1c Affa~,_......

bee: W1111am c. Parler James H. Taylor Harold R. Denton Thomas E.. Hurley

By way: ot a NRC Stat!, negative consent, policy iaaua paper (3EC'Y*QO-b26, dated December )1, 1990) which was subnrl.tted to the sitting oollegiAl u. s. Nuclear Regulatory Commission 1t,sell, and was aigned by James R. Shea, Director, International Programs* ottice or Governmental and Public Affairs, the NRO Sta!! aoughta "To inform the Oomm1ss1on ot the sta!t's 1nwntion to issue an impori lioonso to a Department ot De!ense contraotor to allow a *** liheore thermionio liquid metal (NaK) thermal spectrum space reiaotcirJ to enter the U* B *"

And th~t the NRC 11 staf'f' is prepared to tesue an import 11.oense to ra Department or De.tense contre.otor a.a :requested bf the December 28 1 1990 DOD/SDIO applioatioz:O if there is no objection on the part of tho Commission 1tselr *"

By way o:t background, SECY-SJ0.426 br1Gf'l)" reviewed the NRC/

Applicant interaction up to *December :,1., and .9fterotJ *pert1nant documonte.

In pertinent part SECY-90-426 rurther statess 11 The start notes that the illlportation ot a utul1zat1on tac1Uty do1;1e not reqU1re an Agreement !or Cooperat1on With the exporting oountry (Section 123 ot the Atomic Energy Act), 'but exportat1on or a ut1l1.za.t1on 1"ao111ty does require such an agreement. The statt haa adV1.sed SDIO that the absence of euoh an agreernant between t.he u. s. and the exporting country woUld block NRO *,

t ieeuance or an export lioense to return tha TOPAZ reactor ,t() that) .

na,ao~r*. ayst.em13 country 0£ originJ

• lL l 1There iz, no requirement to solicit or cona1der the Viewu of the 2xoout1ve Branch in regard to import lioenaingJ however, copies ot the enclosures to this papez, were talefaxed on December 28 to the Departll)8nt ot State..

• We asked* t.bat 1.t DOS saw an:r issue that should be oonsidered.1.n our review to inf'orm ue al!II soon as possible.'1 ( Apparently, auoh NRC/DOS did not include a dratt or proposed 8peoit1c I111p0rt License !or DOS oonourrenoe 1 or commant,

?n the event I the 111ssue that should bo considered n wa.s I eYen then, mb~ than apparent._)"-~ *;, *A start Requirements Memorandum dated January 4, 1991, eisned by-the Secretary ot tne U. S. Nuclear Regulatory 0Qmroiss1on., at th,e behest ot the collegial Comm1ea1on 1tsel1', would by way or reaponsa to that veey same SEOY-90-4261 order additional Executive Branoh ooneultations with the u. s.

bepartment ot State be.fore an import iloensa could erteotively issue. , ., .. 1 *.. .

1

~on&l.d D. Rauber

~**1st.ant Director kporte, SecvitJ and S~et7 Cooperation International Prop-au

lttia* ot G0Yern1111tntal *nd Pll'blic Atfairi, AND u.s. ffuolear Rel\llatory Commission (IRC )

S.0N'\&ry u.s. lfllclear Re'IU].a\e17 A.t.tAnticms Ch1et, Docketing and S*n1ce Braneh A lfOl'ICI or INTDT TO s111c*PSRMISSIOlf TO APPl!J .. . . * 'l'BI COLl&OliL COMMISSION IF ?&CISSARY 1 SWPAJ! L PXTrtI~(F.01'-: KVLDUINO.

~

IN THI ~ ,

A NOTICE OF INT!lff TO FILP: A 1'tr1Jt': **10 Ctt.Al'l'!ll l 'fl-~-.

See 10 OFR U .....-**. :. *

• . ~

,~:.:_..:.,:.i

. .: -:.~

'l . . . . . .

~* *o; ;,"' -

. ~. ':;

• .-~

Such rul.ensaking would 11111>1-*nt SectM>n ~J7* ot t-.. -Atc>lile ID81"17 Act ot 19SL, ae aubaeq,aentl.y **nd*d .- (See l.2 080 *-eo,7 (irH

• Al1d uoh rule-.ldnl we'llld a1111utd 07 f'QOtnote, ~ ~  :~ , Title Ohapffr I Part 1101 tM 001111r.1.,1iona replatio* ,_.. .vitliln \he Code ot federal Re,ul.atlon (OFR). *

$tot.loll S7e ot th, aot (1'2 USC 2077 ( e), the . . . i 48.-~" ) t

-~ 1n 1111.nd Seetj on U and Sectioha 103 aJCI lrlf: Hfrtnc,.a *

"Special nuclear *teri&l, e.a detined: in section *tOJ,l& *ot *this title, produced 1n tacWtUa Jj.eansed under H0\~~'2133 :f)I' 21)4 of this titl* *7 nC>t be *tranaterred, Npi~. . . ..~. \ll!HW!,

01" othel"Viee IIWS* &Yail.abl* b7 an;, in*tl"WB8nt.al.1,t of*.* ~b*

United Stat.ea or*~ ot~r-peitson tor nuclear~~!* pvpoa***"

....:T ,

-~

Part ll0" deal* vi.th the re~l&tiona: lfhi~b p~eGri.~-*11c,1111.nl, 11 entol"Ce*nt, and ru1-llald.n<< pi-oo9duree ~ oi-ii.eriia; '.* .-d*r the Atom.o lnero .A.at, tor the export. ot tmclear *~~~ and .11&*

ten.al, ** set out in lOOl'R 110.8 abd 110.9, .*~Jl**~"

nuol*ar equiJ)Mnt and *t.erlal, as aei out in 10 ; .. ,

• U0.9** n ot Writer haa previmaaly approaci.d t.he MRC S.n A,po~*~-'9 a lPederal RM111ter notice ot a Fin&l Rvle dated 9lOSJl. (S.. *Sf.fa 2!&&82.)

I The COlllliaaion ha.s writer* s 910621 * ~10717, *t.l)d.. ~?le wblli.ttale.

(See Dooot No. 11004387 and .r.tcen~ , . _. * , '10104 * ) l Jo ke etlfft-

. ;i,

..1\ablio ll I

I

I

~ WHOM IT DY COIJCDH

~itt vilJ QOAtina d ~. .i ~ .vi~ lfr* ~-~ :~* Y~a of. ~

,~.. ,.. _ ~ t : of Dd**~* - **

. . *- , . ~. * , Cf~*!PI

,-1,i;.a__- . thl-t * ~ .. ~... .- .i ,. *.

• 1 .

• -*=~-,Ze,*-~-.&f:o~~-*;r~-=r--.~,;t=

1:-~~.t-.. ¥.U. ~

.l-fi.t :~ t i , , ,-.: ..~.~

- = -J*=-~!f',

the u.s. lluol . . r a.qulat:ory Comd.aeion.

tbat pur*uant to the teraa o~ the

. ,. * . . ~ ~

o.**. *..: ~~* -~- ~ **~ ':-~

~-Ki- to ..t-. -tf.z,a- *apc. ,-.war, u.-,.

- ,~9. . . I ,.

• .~ ~:* ~ _' ~ . .

'J'be licenee tipul&ted Atoa~c; l~i-gy Act of U5*

• mo. by any * ~ r t of ~h* *U!)ject Topas XI d*vioa troa the United Stat**

would have to take place in accordanoe vJtl) tht t,111111 of ~

appropriate *~~*-nt tor coop*ration *conoemin9 t.he peaceful uus of atomic energy. I have noted this clause in the u.s. NRC license and ahall call it to the attention of the interested authorities in tbe USSR.

It i* also JAY under*tanding that Space Power, Inc. inte.nds to pursue the que-.tiona ot the proposed export conditions further with the u.s. NRC , since th~ subject device not only is non*operable but cannot be made operable under *ny reasonable conditions.

OCKET NUMBER PROPOSED RULE UNITED STATES NUCLEAR REGULATORY COMMI SSION WASHINGTON, O.C. 20555 August 27, 1991 OFFICE OF THE SECRETARY Mr. John Francis Darke Box 703 Copper Queen Station Bisbee, Arizona 85603

Dear Mr. Darke:

In order for responsible Commission offices to review your aJ.etter of August 5, 1991, it is necessary that copies of the

-orrespondence you refer to in the last paragraph of your letter of that date be provided to the Commission. Specifically, the letters dated 6/27/91, 7/17/91 and 7/18/91. Please fax or send copies of these documents to my attention as soon as possible. Should you fax the documents please fax on 301-492-1672.

Sincerely yours, Emile L. Julian~ Chief Docketing and Service Branch

Attachment:

Darke letter of 8/5/91

John P'ranci* Darn .

Box 703 et,pper, Qwta . ~iion Bisbee, AH.aoaa 8~ . ,

~onald D. Hauber

!ea1st.ant Director kporte, S*cuJ"1.t7 and Sat*t1 Cooperation International Pro11"&111e Jtfiae ot GoYel"fflantal and

-AND Public Attairs u.s. Nuolear Re1Ulatol'7 Coffliesion (IRC)

Seore~ary Ch&il"pel"SOD .* .

u.s. lf\lclear lwl\ll&'°'T u.s. Nuol.-u> --.u~ry A.t.t.entlon1 Chi.et, Docketing and C0M1111ae1on, : a1 11tttJS1 Sel"YS.ce Braneh A MOl'IC! or INI'!:NT TO SISK'.. PERMISSION TO APPl!J Hl!I! m COWOliL COMMISSION IF NEC!SSARY I AltD IN THE '.A.Lt!PfEm 1

.,*"\-;I

~

. .:--:.;-4 A HOl'IOE OY INTINT TO FIU: A 1'rtIE

• 10 CHAPr.lR l .P-.iao . .~*:i.~;::-i snPAftt L PXTrtIOi-F.01'-~IUIZMUINO. s.. lO OFR u .. ,_

.:~:.. i.~,==J..

3uch rulensaking would 1111>1-*nt Sect~n S7* ot t.a.--1.tollle Soera

, .. , ..,v 4 ~'r

~- ..

' ,-. *;.*r:

. . . .. .:.a

. . t" ~

Act ot 19SL, ae eubaeqaently ai.anded.- (See 112 tJSO *-tbT?(e')) . .:*: t,?.

And uoh ruleuJc1na would &Mnd 07 .raot.nate, i:l' . _ .. ...,, Titl*

Ch&J,Mr I Part 1101 th* Colllld.11iona reculatio~ l'--1 wittiln the Code ot federal Recul&tion (CFR).

• Stot.1011 S7* ot th, aot, (1'2 USC 2O77(e), tJw .,_if. .iia,-~ 11 )~

- b t ~ 1n fllind Sectj on 11 and Seotiohs 103 ~ lrla* Nt*renoea.

"S,.oial nuclear Mteri&l., a* detinad* in section IOU& *ot thie

,* ,. ~:'j;.~

'*.-~.,.'

If';,,.

title, produced in t'acUitt.** U.eenaed under eeot,~~'2133 or 2llh ot this title *1 not be *tranaterred, re~-+d, used, or othem.ae ude &Tail&bl* b7 l.ftT inatl"\l*~~t of tbe United Stat.ea or *OT ot~r peNon tor nuo,lear 4oq,~L* purpoa***"

Part 110 deal vitb the replationa* .mich pt91Gri.-i>>e. l1O1na1nl, 11 11 entoroe*nt, and ruleaakin1 prooedurea and ori1~; ~IIDd*r the Atotd.o lnera .Act, for the export ot tmclear * ~ * * ' t.nd * -

tenal, ** set out in lOCJ'R 110.8 abd 110.9, .__, , * . illport ot nuol*ar equip*nt and 11&terial, as set out in

• 10 ~

• UO.9&. n

'.olritar ha previcnaaly approached the MRC S.n re'po""~-w a JPederal M111ter notice ot a Final Rule dated 9105)1. {8-- S+ fR 21'662 * )

The Coarataeion has writer* s 910627 , ~10717, ._.,4 ~?le wt:nlit,tale.

(See Docket No. ll00b387 and Ucen:ltt ~ d* .. flOlOu.) l Jo~ lI l

-**-- ------- ,._.____... -*-- ---* ----**----- ...-~--* __........ -

I

~ WBOH IT KAY COIICUH 1'h1.tt YUl ~l* d1-ou. .i ~ v~~ .Mr. ~~ -~* Y~~ l?f ~

.~

~~t ~ ~--~~:.:M4.~~I ~~-~-:-- ~ :.1;~9.~ :

ttl

1.9MC**~ ~ . ~ *.,-,... ., P. - - * ._,,.. -~ . ~ .

.* - fon-..

.--~* ;.. ~

Jw~ *-Olffl ~, *

~ ~ - - --- -£,-port ----~ ~ * .. ~*tor 1 i'C&SII* -......

~~~t wu ~-wtd* =:i . .la=ai;J,!', ~ffi t o ~ ~frii:*~ 7cWl.r, *rnc*... by the u.s. lhlolear Regulat:ory Co1m1iaeion.

• O.-ind.irj.ec.t I~--

d l l *.ofdovic*

'fbe li0ena* tip~l&ted that pur*uant to th* teraa of the u.e,. Atoaio Inergy Act of "54 any a)Cpe>rt of t:he *@1eot Topal II devioa troa the United Stat**

would have to take place in aaoordanoe vitb the tcru at .an approp,riet* *~~*-nt ror cooperation conoern1n9 the peaceful uses of atomic energy. I have noted this clause in the U.S. NRC license and ahall call it to tha attention of the interested authorities in the USSR.

It i* also 11y understanding that Space Power, Inc. intends to pursue the qu~1.tiona ot tho proposed export conditions turtber with the u.s. NRCf sine* the subject device not only is non-operable but cannot be made operable under any rea~onable conditions.

t)OCKET NUMBER PR . V7 I I CJ PROPOSED RULE.!.!!_,___,.....

(~£Fr< ~t/-lf:;.) OOCK[1EO 759d~cJfC

• 91 MAY 24 P4 :22 Nuclear Regulatory Commission 10 CFR PART 110 RIN 3150 - AD 95 Return of Topaz Reactor to the Soviet Union AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

SUMMARY

The Nuclear Regulatory Commission is amending its regulations pertaining to import and export of nuclear equipment and material to permit the return of the Topaz II Reactor System to the Union of Soviet Socialist Republics (USSR). The Topaz II was imported into the United States pursuant to an import license issued by the NRC on January 4, 1991. Thfs rulemaking action permits the export of Topaz II, which is owned by the Government of the USSR, without issuance of a license by the NRC.

EFFECTIVE DATE: {date of publication)

FOR FURTHER INFORMATION CONTACT: Joseph F. Scinto or Joanna M. Becker, Office of the General Counsel, U.S. Nuclear Regulatory Commission, Washington, D.C.

20555; Telephone (301) 492-1740.

SUPPLEMENTARY INFORMATION: In January 1991, the Topaz II Reactor System, a space reactor developed and owned by the USSR, was imported into the U.S. under an NRC import license, at the behest of the Department of Defense {DOD), for exhibit at a Space Nuclear Power Symposium in Albuquerque, New Mexico, and

/1 I f r}r* ~/?> I i.f h t:V t;~ Ff2.  ?-

inspection and study by 000. The reactor was imported without fuel, coolant or moderator and is non-operating. It is possessed in the United States by Sandia National Laboratory, a prime contractor of the Department of Energy exempt from facil i ty license requirements by NRC regulations in 10 CFR 50.11.

The Topaz II Reactor System, while in the United States, is subject to the provis i ons of those sections of the Atomic Energy Act applicable to utilization facil i ties, including Sections 101 and 104.

Section 101 re ads as follows:

Sec.IOI . license Required. - - It shall be unlawful, except as provided in section 91, for any person within the United States to transfer or receive in interstate commerce, manufacture, produce, transfer, acquire, possess, use, import, or export any utilization or production facility except under and in accordance with a license issued by the Commission pursuant to section 103 or 104.

Section 104d. provides, in pertinent part:

Sec. 104 Medical Therapy and Research and Development

d. No license under this section may be given to any person for activities which are not under or within the jurisdiction of the United States, except for the export of production or utilization facilities under terms of an agreement for cooperation arranged pursuant to section 123 or except under the provisions of section 109.*****

Section 11. cc. of the Atomic Energy Act of 1954, as amended, defines "util i zation facility", in pertinent part, as any equipment or device, except an atomic weapon, determined by rule of the Commission to be capable of making use of

special nuclear material in such quantity as to be of significance to the common defense and security, or in such a manner as to affect the health and safety of the public, or peculiarly adapted for making use of atomic energy in such quantities as to be of significance to the common defense and security or in a manner as to affect the health and safety of the public *..

Commission regulations in 10 CFR 50.2 define "utilization facility" as any nuclear reactor other than one designed or used primarily for the formation of plutonium or U-233.

Commission regulations in 10 CFR 110.2 define "utilization facility" as any nuclear reactor, "other than one that is a production f ac ility, and the following major components of a nuclear reactor . . .

Although though presently unfueled, the Topaz II Reactor is a reactor peculiarly adapted to making use of atomic energy and was imported under NRC import license No. IR 90002, issued January 4, 1991. This license contained a condition to the effect that it would "become effective only upon written acknowledgement, by an authorized representative of the Union of Soviet Socialist Republics, that any export from the United States of the TOPAZ II Reactor System must meet the requirements of the U.S. Atomic Energy Act of 1954, as amended. Under the law, at present, these requirements include the need for an Agreement for Cooperation in the Peaceful Uses of Atomic Energy. 11 The authorized representative of the USSR acknowledged this condition. There is currently no such Agreement for Cooperation. However, the Soviet agency which developed and owns the Topaz II Reactor System desires its return to the Soviet Union.

Although capable of making use of special nuclear material and peculiarly

adapted for making use of atomic energy, taking into account the absence of fuel, moderator or coolant, the intended short stay and limited use as a model for exhibition purposes in the United States, and its return in the near future to the country of origin, the Commission has determined that, in connection with the export of the device, the Topaz II Reactor System imported under NRC license No. IR90002 is not a "utilization facility" and is amending the definition of that term in 10 CFR 110.2. Thus, this device may be exported without issuance of a Commission export license.

Since this matter involves a device which is the property of the Soviet Government transferred for exhibition purposes to the Department of Energy and involves a matter of interest to the Department of Defense and the Department of State, the Commission has determined that this amendment involves a foreign affairs function of the United States. Thus, the notice and comment provisions of the Administrative Procedure Act do not apply, pursuant to 5 USC 553(a}(l}.

Environmental Impact: Categorical Exclusion The NRC has determined that, pursuant to§§ 51.10 and 51.22(c)(l} of this chapter, the amendments to Part 110 which follow require neither an environmental impact statement nor an environmental assessment.

Paperwork Reduction Act Statement This final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et

~). Existing requirements were approved by the Office of Management and Budget under approval number 3150-0036.

Regulatory Analysis Adoption of these amendments is necessary in order to enable return of the Topaz II Reactor System to the Soviet Union. No other NRC regulatory actions or alternative actions by other agencies, to the best of the Commission's knowledge, address this matter nor, in view of the desired time frame,. are any alternative courses of action feas i ble. It i s not expected to result in any i ncreased regulatory burden .

Regulatory Fl exi bil ity Cert i fi cation As required by the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Commission certifies that this rule does not have a significant economic impact on a substantial number of small entities. The fina l rule does not impose additional obligations on the public.

Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this final rule, and, therefore, a backfit analysis is not required for this fi nal rule because these amendments do not involve any provisions which would impose backfits as defined in 10 CFR 50.109(a)(l).

List of Subjects in 10 CFR Part 110 Admi ni strati ve practice and procedure, Cl ass i fi ed information, Criminal penalty, Export, Import, Incorporation by reference, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Scientific equipment.

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, and 5 U.S. C. 552 and 553, the NRC is adopting the fo 11 owing amendments to 10 CFR Part 110.

PART 110 - EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL

1. The authority citation for Part 110 continues to read as follows:

AUTHORITY: Secs. 51, 53, 54, 57, 63, 64, 65, 81, 82, 103, 104, 109, 111, 126, 127, 128, 129, 161, 181, 182, 183, 187, 189, 68 Stat. 929, 930, 931, 932, 933, 936, 937, 948, 953, 954, 955, 956, as amended, (42 U.S.C.

2071, 2073, 2074, 2077, 2092-2095, 2111, 2112, 2133, 2134, 2139, 2139a, 2141, 2154-2158, 2201, 2231-2233, 2237, 2239); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).

Section 110.l(b)(2) also issued under Pub. L. 96-92, 93 Stat. 710 (22 U.S.C. 2403). Section 110.11 also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152) and secs. 54c and 57d., 88 Stat. 473, 475 (U.S.C. 2074).

Section 110.27 also issued under sec. 309(a), Pub. L.99-440. Section 110.50(b)(3) also issued under sec. 123, 92 Stat. 142 (42 U.S.C. 2153).

Section 110.51 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 110.52 also issued under sec. 186, 68 Stat. 955 (42 U.S.C. 2236). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554.

Sections 110.30-110.35 also issued under 5 U.S.C. 553.

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

2273); §§ 110.20-110.29, 110.50, and 110.120-110.129 also issued under secs. 161 band i, 68 Stat. 948, 949, as amended (42 U.S.C. 2201 (b) and (i); and§§ 110.7a and 110.53 are also issued under sec. 161(0), 68 Stat.

950, as amended (42 U.S.C. 2201(0)).

2. The definition of "utilization facility" in§ 110.2 is revised to read as follows:

§ 110.2 Definitions.

"Utilization facility" means any nuclear reactor, other than one that is a production facility, and the following major components of a nuclear reactor:

(1) Pressure vessels designed to contain the core of a nuclear reactor; (2) Primary coolant pu~ps; (3) Fuel charging or discharging machines; and (4) Control rods.

A utilization facility does not include the steam turbine generator portion of a nuclear power plant. For purposes of export from the United States under the jurisdiction of the Nuclear Regulatory Commission, a utilization facility does not include the Topaz II Reactor System owned by the Union of Soviet Soehl ht Republics and imported into the United States pursuant to NRC License No. IR90002, issued January 4, 1991.

3. Section 110.5 is revised to read as follows:

§ 110.5 Licensing requirements.

Except as provided under Subpart B and the definition of utilization facility in§ 110.2 of this part, no person may export any

nuclear equipment or material listed in§ 110.8 and§ 110.9, or import any nuclear equipment or material listed in § 110.9a, unless authorized by a general or specific license issued under this part.

Dated at Rockville, MD, t h i s ~ day of May, 1991.

r Regulatory Commission.