ML20151P466

Responds to Wb Kenna 711206 Ltr Outlining Actions Taken to Improve Nuclear Matl Control Sys.Timetable for Completion of Actions Adequate

ML20151P466
Person / Time
Site:	07000364, 05000135, 07000135
Issue date:	02/07/1972
From:	Damico V US ATOMIC ENERGY COMMISSION (AEC)
To:	Lovett J NUCLEAR MATERIALS & EQUIPMENT CORP. (NUMEC)
References
NUDOCS 8601140053
Download: ML20151P466 (1)

Text

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O O F'EB 'l 1972

!C'S : FJM 70-135 70-364

!!ucicar Materiola and Equipment Corporation Attn Mr. J. E. I.ovott, Manager liucicar !!atorials Control 609 N. Warron Avenuo Apollo, Ponnoylvania 15613 Conticmont This is in rospoano to your Docomber 6, 1971 lottor to

• IIr. Uilliam B. Kcana of our District II Safoguards Office (SO-II) which outlined actions you havo taken in order ,

to improva your nucicar matorial control oystom. The timotable for completing thoco actions appears to be adoquato.

1 1 Tho 50-II will continuo to monitor the performance of your nuclear material control systoa.

Sincoroly, c n y.u d.cva by i,,... . . t .) L' e d ' J Vincent J. D'Amico, Annistant Director for Operations Division of Nuclear Hatoriale Safoguards D_I S_TR_I_IlUT I ON DOCK ETS70-135,-364', ,w/ incoming NMS Reading, w/o incoming Case File, w/ incoming VJD Reading, w/o incoming 0601140053 720207 PDR ADOCK 07000364 C PDR NHS NMS

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• o Nuclear Materials and Eqmpment Corporanon W) N. Nren Ave Apollo, Pennsylvania 1s613 i L U ,,J ,L L G t> Telephone (412) 842-0111 a sulsduty of

,; , ACA December 6, 1971 Mr. William Kenna U.S.A.E.C.

District 11 Safeguards Office Room 623 - P.O. Box E Oak Ridge, Tennessee 37830

Dear Bill:

As you know, Atlantic-Richfield Company announced on August 23, 1971 that it had decided to close llUMEC and drop out of the nuclear industry. As a natural result of that decision, compliance with a number of secondary safeguards requirements, such as the updating of procedure manuals or the development of statistical uncertainty data, was suspended. Full compliance with the more important safeguards requirements, such as the measurement of shipments and receipts, the documentation of inter-MBA movements, or the conducting of periodic physical inventories, was continued.

As of flovember 1, 1971,tiUMEC was transferred to the Babcock and.W Rr.ox. Company as a subsidiary corporation reporting directly to corporate heauquarters in flew York City. It is anticipated that fiUMEC under B&W will continue to produce low enrichment UO2 powder and recover both internal and customer-generated scrap

(<5% U-235). It is also anticipated that flUMEC will resume production of flavy fuel material, undertake high enrichment scrap recovery for B&W-Lynchburg, and begin production of UO2-Pu02 fuel rods for the FFTF program. Hopefully we can also return to the business of converting uranium compounds to UF6 for return to the AEC.

The purpose of this letter is two-fold. First, it is intended to advise you that I have aced to continue at NUMEC as Manager of fluclear Materials Control, with essenti .ly the same responsibilities and authorities that I previously enjoyed. Responsibility for shipping and receiving has been returned to me, a change that should ensure greater coordination of transportation and internal safeguards activities. My immediate superior is Dr. E. C. Moncrief, Manager of Quality and Technical Services; Dr. Moncrief reports to W. A. Cameron, President of fiUMEC. More complete data on the new tiUMEC organization will be included in the procedure manual to be prepared as outlined below.

Second, I would like to outline some major revisions and improvements in nuclear material control which are planned or underway, together with a timetable for their completion. These include a complete redesign of the fiMC records system, the institution of secondary controls such as those already described for FFTF work, revision and reissue of the NMC Procedures Manual, and more carefully,. }QMLO ., ,

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Mr. William Kenna 2 December 7, 1971 defined statistical programs. It is also expected thct more and better non-destructive measurement equipment can be obtained which will contribute to more accurate material balances. (Some significant plant modifications are also expected to contribute to reduced losses and better loss control; these are not discussed in this ' letter.) Each of the system uanges noted above is discussed in the paragraphs that follow. fiMC Record System. A completely-redesigned flMC record system is being develofc'd iiilh7 tarset date of January 1,1972 for initial operation. This system will separate safeguards records, based solely on NUMEC measurement data, from financial records based on mutually agreed data. It will provide for automatic balancing between the two systems, so that there will not be two differing book estimates of what the physical inventory should be. It will also provide for routine documentation and referral to the technical staff of all S-R differences, thus assuring timely investigations where necessary. Statistical uncertainty Data. The analytical laboratory has agreed that FRiiiary responsWRTty for data related to the uncertainty of analytical procedures rests in the laboratory, not in NMC. Similarly the Quality Control group, which has responsibility for scale maintenance, has agreed that that responsibility carries with it a responsibility for data related to the uncertainty of weight measurements. These two groups, accordingly, will report the results of their work to NMC on a monthly basis. NMC will retain responsibility for combining these uncertainties into the uncertainty of a material balance, for conducting the special studies required by safeguards license condition 3.3, and for developing uncertainty data related to sampling and non-destructive measurements performed within NMC. Details of these changes should be worked out during December, so that the first reports should begin to become available during January. Secondar You have already received a copy of my August

 '. 7,~T9/I'y Material Controls. lefter to OrDhornton outlining a system of secondary material controls
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I over the FFTF program work. In addition, we are actively pursuing a computerized perpetual inventory system for the NMC vaults which should facilitate verification, at frequent intervals, that all items in NMC storage are still present and intact. We also intend to apply secondary controls similar to those described for FFTF to the Navy fuel work. These procedures will be developed and in at least trial use when Navy fuel production resumes. No secondary control system currently is planned for low enrichment work, since the existing low loss rate (about 0.1% MUF), the frequent material balance closings between enrichments, and the low strategic importance of the material, combine to make significant undetected diversion a highly improbabic event. Procedure Manuals.

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Since the existence of good procedures is preferable to tEc~VocumentatE6 of poor procedures, a lesser priority has been assigned to the revision of the NMC Procedures Manual. The plan is to issue a completely revised manual in five parts, as follows:

1. General Policy, FMC's etc. (Jan.31,1972)

II. Navy fuci production (March 31, 1972)

    ..                                                                     O                          O Mr. William Kenna                                                                    3                December 7, 1971 III.                                            FFTF fuel production (June 30,1972)

IV. Physical Inventory (Aug. 31, 1972) V. Low Enrichment Work (Oct. 30, 1972) This schedule is consistent with production plans and the applicability of existing documents. The general policy section is most in need of revision, Lecause of changes in organizational responsibilities. No detailed description of Navy fuel procedures exists, since the proposed secondary controls make existing descriptions obsolete. On the other hand, the August 7 letter constitutes a manual of scrts for FFTF work, and only qualification wcrk will be performed prior to June 30. Likewise the existing physical inventory procedures need little or no revision, and no changes are planned in control procedures for low enrichcent uranium. It is our belief that these changes will bring NUMEC into full compliance not only with the letter, but also with the intent of current AEC safeguards regulations and license conditions. If you have any questions or would like further information, please let me know. Best personal regards, (. //.i r, .f.6>-<ll7 j J. E. Lovett, Manager - -- -

 ' Nuclear Materials Control JEL:so                                                            /

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