ML20217N982
| ML20217N982 | |
| Person / Time | |
|---|---|
| Issue date: | 10/13/1999 |
| From: | Jun Lee NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| SECY-99-248, SECY-99-248-01, SECY-99-248-R, NUDOCS 9910290178 | |
| Download: ML20217N982 (31) | |
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POLICY ISSUE October 13. 1999 g g SECY-99-248 FOR: The Commissioners FROM: Janice Dunn Lee, Director Office of International Programs
SUBJECT:
PROPOSED LICENSE TO EXPORT SOURCE MATERIAL TO THE RUSSIAN FEDERATION UNDER THE U.S.-RUSSIA HEU AGREEMENT (XSOUB767)
PJURPOSE:
To request Commission approval of a license authorizing the U.S. Department of Energy (DOE) to export source material to Russia. The application is being referred to the Commission in accordance with 10 CFR 110.40(b)(5).
BACKGROUND:
On June 4,1999, The U.S. Department of Energy (DOE) applied for a license (Attachment 1) to export to Russia 135,000,000 kilograms of natural uranium, in the form of uranium hexafluoride, over a 15 year period at an average rate of 9,000,000 kilograms per year. The material will be:
(1) used to blend high-enriched uranium (HEU) to low-enriched uranium (LEU); (2) sold outside Russia; or (3) stored for future use or sale.
The natural uranium will be exported pursuant to the Agreement between the U.S. Department of Energy and the Russian Federation Ministry for Atomic Energy Concerning the Transfer of Source Material to Russian Federation, signed in Washington on March 24,1999 (Attachment 2).
The agreement was negotiated with several U.S. interests in mind.
e Successfulimplemeritation of the U.S.-Russia Agreement on converting Russian weapons-grade HEU to non-weapons-usable LEU is a major U.S. national security goal. 'l' i , e in accordance with section 3112 of Public Law 104-137, Russia is entitled to the natural ^z\H f uranium component of the LEU delivered to the U.S. on or after January 1,1997. CONTACT: B. L. Wright, OIP/NEMR 415-2342 oq:}(,.ld ]b ' 9910290178 991013 I N~(C Cm 1) ) PDR SECY 99-248 R PDR
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2 i e implementation of the natural uranium provisions of the U.S.-Russia HEU -LEU deal became a President Clinton-President Yeltsin Summit issue in September 1998.
- Congress made $325 million available to purchase 1997 and 1998 quantities of Russian natural uranium, provided that Russia concludes a long term commercial contract.
e Russia proposed a transfer of the natural uranium component to Russia in a manner supportive of a long-term commercial contract. e A separate agreement was necessary, in the absence of a Section 123 Agreement for Cooperation between the U.S. and Russia, to assure that the natural uranium to be transferred to Russia would be subject to the non-proliferation conditions and controls mandated by the Atomic Energy Act. The March 24,1999 agreement was negotiated by DOE after consultations with the Congress on the need to come to a satisfactory arrangement with Russia and on the emerging consensus within the legal offices of the Executive Branch agencies and the Commission that the Atomic Energy Act allowed an NRC-licensed DOE distribution of natural uranium to Russia without a Section 123 Agreement between the two countries. An exchange of diplomatic notes pertaining to the March 24 Agreement reflects Russia's assurances consistent with the export criteria set forth in section 127 of the AEA and section 402(a) of the Nuclear Nonproliferation Act, including the assurance that source material transferred under the agreement will not be enriched without prior U.S. approval. DISCUSSION: Notice of receipt of DOE's license application was published in the Federal Register and no intervention or hearing requests were filed. In response to NRC's request for views on the proposed export, the Executive Branch, in their letter dated September 16,1999, recommended that the license be approved (Attachment 3). The letter contained findings that the export would ; be subject to all of the non-proliferation conditions and controls required by U.S'. law, including those set forth in section 127 of the AEA, and would not be inimical to interests of the United States, including the common defense and security, and would be consistent with the provisions of the Atomic Energy Act. The Executive Branch letter concluded that the export of natural uranium for a nuclear use can be made by DOE as a distribution under NRC license pursuant to j section 64 of the AEA without a section 123 agreement for cooperation. The legal theory l
. supporting the issuance of this license was developed by NRC's Office of the General Counsel l and shared with Commission offices in a February 1998 briefing of the Commissioners' j assistants. !
International Safeguards and Foreign Physical Protection Russia is a nuclear weapons state and therefore not subject to full-scope IAEA safeguards f under the Non-Proliferation Treaty (NPT). Russia has submitted a separate storage facility in 1 Ehlektrostal to IAEA safeguards under its " Voluntary Offer" agreement. 1 i
3 lb-3 NRC staff have visited Russia within the past several years as part of the Material Protection
' Control and Accounting (MPC&A) assistance program but not for the explicit purpose of evaluating the implementation of physical protection with respect to international recommendations, nor has the staff received a statement from Russia declaring that physical protection measures accord with those recommendations. Russia is, however, actively working to improve the protection of its nuclear materials through the MPC&A program and its work with other countries, and Russian experts have observed implemented physical protection measures -
in the U.S. and discussed this subject with our specialists. Russia has participated in international consultants meetings, workshops, and conferences addressing enhancements to
- physical protection measures in lAEA's guidance document, INFCIRC 225.
-In any event, physical protection of natural uranium in Russia has not been a concern of the U.S. govemment, relative to other materials, and does not involve any difficult technical challenges or special risks.
Review of State Department Telegrams and Other information OlP has reviewed availab'le telegrams and other information. We have found no basis for calling into question the Russian Federation's commitment to carrying out its undertakings in the March 24,1999, agreement.- CONCLUSION: ,
. The staff concurs with the Executive Branch judgment that the proposed export would not be inimical to the common defense and security of the United States and is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978. The Office of the Executive Director for Operations concurs. The Office of the General Counsel has no legal objection.
I
o 4 4 RECOMMENDATION: That the Commission authorize the issuance of the requested license to DOE for 135,000,000 kilograms of natural uraniurn. I QJanice Dunn Lee, Director U Office of International Programs Attachments: 1. 06/04/99 DOE Export License Application
- 2. 03/24/99 Agreement Between the United States Department of Energy and the Ministry of the Russian Federation for Atomic Energy Concerning the Transfer of Source Material to the Russian Federation
- Annex to the Agreement
- 03/24/99 Administrative Arrangement
- Finding Of No Significant Impact
- SupplementalInformation
- 3. 09/16/99 DOS letter R.J.K.Stratford to J.D. Lee Commissioners' completed vote sheets / comments should 'be provided directly'to the Office of-the Secretary by COB Thursday,' October 28, 1999.
Commission Staff Office comments, if any, should be submitted to the Commissioners NLT October 21, 1999, with an information copy to the Office of the Secretary. lf the, paper is of such a nature that it requires additional review and comment, the Commissioners and the. Secretariat should be apprised of when comments may be expected. l DISTRIBUTION: Commissioners OGC OPA. OIP OCA CIO
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^ /9269 The Under Secretary of Energy
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+ p June 11,1999 CC*D L! ;":t Dr. Shirley Jackson 7 JL?J O ,5.,; 1fhairman U.S. Nuclear Regulatory Commission Washington, D.C. 20555
Dear Chairman Jackson:
This letter transmits the Depanment of Energy's application for a license to expon natural uranium to the Russian Federation that it receives title to in the United States under the U.S.- Russia HEU Agreement. Accordingly, we are enclosing NRC Form 7, an Environmental Assessment, and the corresponding Finding of No Significant Impact for the proposed action. The application is in support of a " Transfer Agreement" signed on March 24,1999, between the United States Department of Energy and the Ministry of the Russian Federation for Atomic Energy that provides for the shipment to Russia of any natural uranium not purchased under a long term commercial contract between Russia and a westem consonium of uranium producers. Any of the " feed component" retumed to Russia will remain subject to appropriate U.S. nonproliferation assurances and go into a stockpile to be sold by the consortium at a later date or be used in downblending HEU from Russian weapons. As you know, the new approach on the feed component enabled the U.S.-Russia HEU Agreement to resume operation on March 24. The Department urges the Nuclear Regulatory Commission to urgently review the license application, since it is central to the recently signed agreements. The NRC staff was very helpful in discussing the approach that led up to the Transfer Agreement that has resulted i.n this license application. Next month, deliveries under the HEU Agreement will mark the first Russian feed component that, if not purchased by the consonium, would be a candidate for retuming to Russia. Approval of the license by the Nuclear Regulatory Commission will help sustain the U.S.-Russia HEU Agreement and funher U.S. nonproliferation objectives. If you have any questions on this application, please contact me or have your staff contact Jeffrey L Hughes of my staff at (202) 586-3500. Sincerely, Emes . Moniz
. Attachments: as stated
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. AdditionalInformation l
l in February 1993', the United States and the Russian Federation signed the United States / Russian Government-to-Government highly enriched uranium (HEU) agreement for the disposition and purchase of 500 metric tons of HEU extracted from Russian nuclear weapons. Pursuant to this HEU agreement, the U.S. Executive Agent, the U.S. Enrichment Corporation (USEC), and the Russian Executive Agent, Techsnabexport (TENEX) executed an implementing contract that provided for prompt payment for the enrichment component of the low enriched uranium (LEU) derived from the HEU and delivered to the United States,j With regard to the natural uranium
' component of the LEU, this initial contract provided for payment either when sold or utilized for overfeeding the gaseous diffusion plants by USEC. However, sale of this component in the U.S. l
; was complicated by a large oversupply of uranium in the market, limited demand, unattractive market prices arid restrictions on the amount of Russian. origin uranium allowed into the U.S.
market. i (
' In September 1996, USEC and TENEX contracted to implement provisions of.the USEC I
. Privatization Act that freed USEC of responsibility for the natural uranium component related to the shipments of LEU. J On March 24,1999, the United States Department of Energy (DOE) and MINATOM entered into an agreement (attached) that provides for the shipment of any natural uranium not purchased under commercial agreements to the Russian Federation, subject to meeting requirements under
' United States law, including the National Environmental Policy Act. To support this agreement, DOE is submitting this license application to the U. S. Nuclear Regulatory Commission (NRC) for shipment of up to an average of 9,000 metric tons per year of natural uranium (0.711% U-235) that is Russian titled and stored at the United States Enrichment Corporation gaseous diffusion plants (GDPs) at Portsmouth, OH and Paducah, KY to the Russian Federation each year through the year 2013. It is anticipated that for most of this period, significantly less than that amount would be shipped back to the Russian Federation because of purchases by westem uranium companies under anticipated contracts between the Russian Federation and these companies.' An Environmental Assessment and the Finding of No Significant Impact have been prepared for this proposed action and are also attached!
. Item 22. (Country of origin - source material)
The natural uranium that is the subject of this export license is Russian origin. Russia delivers low enriched uranium to USEC, and the con esponding natural uranium component of this low enriched uranium is flag swapped with other natural uranium delivered from other USEC customers. l l 1
g r. . : n . . . .-- :....v.. ..; n t -til : : <;- :. :- I l Agreement Between the United States Department ofEnergy and the Ministry of
. the Russian Federation for Atomic Energy Concerning the Transfer of Source Material to the Russian Federation The United States Department ofEnergy ("the U.S. Party") and the Ministry of the Russian Federadon for Atomic Energy ("the Russian Pany"), hereinafter referred to as the Parties, Desiring to facilitate implementation of the Agreement between the Government of the United States of America and the Government of the Russian Federation Conceming the Disposition of Highly Enriched Uranium Exuacted from Nuclear Weapons, signed at Washington on February 18,1993 (the "HEU-LEU Agreement"),
- Have areed as follows: -
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ARDCLE 1 1 The U.S. Pany shall,in accordance with and subject to applicable treaties, laws, regulations and licensing requiremems of the United States of America, arrange for the distibution to the Russian Party of uranium hexafluoride delivered to the Russian Executive Agent under section 3112(b)(3) of the USEC Privatization Act,42 U.S.C. 2297h-10(b)(3). The amount of such uranium hexafluodde to be so distributed (" source material transfened pursuant to this Agreement") shall be the amount of such uranium hexafluoride not initially sold or , transferred by the Russian Executive Agent pursuant to the conclusion of the commercial contract between AO Te'chsnabexport and the Compagnie General des Matieres Nucleaires )
'(COGEMA), Cameco Uranium, Inc., Nukem, Inc. and Nukem Nuklear GmbH, contract no.
08843672/90100-02D ("the Commercial Ageement"), entered into in accordance with Article 11.1 of the HEU-LEU Agreement. ARDCLE 2 l
- 1. The Russian Party apees to use source material transferred pursuant to this Agreement only for the following purposes:
a) storage and use in accordance with Article 7 of this Agreement. b) sale in accordance with the Commercial Agreement. !
- 2. Source material transferred pursuant to this Agreement, or any other nuclear material that is substituted for such material pursuant to the Administrative Arrangement entered into pursuant to paragraph 3 of the Apcement effected by the exchange of diplomatic notes between the
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Govemment of the United States of Amedca and the Government of the Russian Federation
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' dated March 24,1999 (the " Assurances Agreement"), shall be subject to the conditions set fonh in the Assurances Agreement. ,
. . ARTICLE 3 The activities of the Parties under this Agreement shall be subject to the availability of appropriated funds.-
ARTICLE 4 The Panies snay, as appropriate, enter into implementing arrangemenu to carry out the provisions of this Apeement. In the case of any inconsistency between this Agreement and any such implementing ammgements, the provisions of this Agreement shall prevail. . ART 1CLE 5 The Russian Pany takes responsibility for preparing for transportation and for transporting to the Russian Federation the source material transferred pursuant to this Agreement. Any cost incuned by the U.S. Party, with the concurrence of the Russian Party, in arranging for such transponation shall be reimbursed by the Russian Pany. ARTICLE 6
- 1. Pursuant to the implementing Agreement contained in the Annex, which is an integral pan of this Agreement, the U.S.fany shall purchase from the Russian Pany feed component associated
' with the 1997 and 1998 LEU deliveries under the HEU-LEU Agreement. - .
- 2. The Russian Pany sha31 make available for purchase feed component associated with the 1997 and 1998 LEU deliveries under the HEU-LEU Agreement.
ARTICLE 7 In order to facilitate the' implementation of the HEU-LEU Agreement,
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- 1. The U.S. Pany shall, subject to applicable U.S. law, maintain for ten years a stock of no less than 22,000 metric tons of natural uranium equivalent, including the uraruum associated with the 1997 and 1998 LEU deliveries pursuant to Article 6 of this Agreement.
By wrinen agreement of the Panies, the stock may be reduced, through the withdrawal of uranium, in order to ensure the reliability of deliveries under the Commercial Agreement, in accordance with Article 4 of this Agreement.
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- 2. The Russian Party shcIl maintain for the duration of the HEU LEU Agreernent a separate j stock of source material transfe. fred to Russia pursuant to this Agreement. Such material '
may be withdravi from tids stock only for the following purposes: (a) up to 2580 metric tons per year for diluting HEU for delivery as LEU to the United
,Sta,tes under the HEU-LEU Agreement; I
(b) sale directly or through its duly appointed agent, in accordance with the Commercial I Agreement and the Assurances Agreement; or (c) provided that a stock of at least 22,000 metric tons is maintained, any material in excess of that 22,000 metric tons may be sold in the form of LEU under existing contracts to countries eligible in accordance with the Assurances Agreement. 1 I ARTICLE 3
/
- 1. This Agreement, heving been signed, shall enter into force upon the entry into force of the j
Assurances Agreement referenced in Article 2, provided that the Government of the United States of America and the Govemment of the Russian Federation have also notified that they have endorsed the conclusion of the Commercial agreement referred to in Article 1.
- 2. This Agreement may be amended by written agreement of the Parties.
- 3. Each Party shall have the right to terminate this Agreement upon no less than 12 months' written notiScation to the other Party ofits intention so to do.
l Done at Washington this twenty-fourth day of Merch,1999,in duplicate in the English and' I Russian languages, both texts being equally authentic. FOR THE UNITED STATES - FOR THE MINISTRY OF DEPARTMENT OF ENERGY: THE RUSSIAN FEDERATION i FOR ATOMIC ENERGY: i f
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ri 4: ii ..:- : ,fm n; , ,. , , ANNEX TO THE AGREEMENT BETWEEN ' THE UhTFED STATES DEPARTMEhT OF ENERGY AND THE MINISTRY OF THE RUSSIAN FEDERATION FOR ATOMIC ENERGY CONCERNING THE TRANSFER OF SOL 9tCE MATERIAL TO THE RUSSIAN FEDERATION (" TRANSFER AGREEMENT") Implementing Agreement WHEREAS, the Govemment of the Russian Federation is delivering low endched uranium derived fmm highly-enriched uranium under the Agreement Between the Govemment of the United States of Amedca and the Govemment of the Russian Federation Concerning the Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons concluded on February 18,1993 (HEU-LEU Agreement); WHEREAS, the Russian Federation owns natural uranium used for roanufEturing low-enriched uranium associated with such deliveries and an equivalent quantity of which is tetumed into the ownership of the Russian Federation in the United States terdtory (hereafter " feed component"); WHEREAS, in 1998, the United States Congress passed legislation providing $325 million for the Department of Energy to purchase the feed component associated with the 1997 and 1998 deliveries under the HEU-LEU Agreement, provided that certain requirements are met, including the concle: don of a long-term agreement by the Govemment of the Russian Federation and commerci:! partners for the sale of the feed component to be dedved from deliveries x.beduled fo: 1999 and thereafter under the HEU-LEU Agreement;. WHEREAS, the the Depamnent of Ener;;y (DOE) and the Mmistry of the Russian Federation for Atomic Energy (MINATOM) have agreed that MINATOM will be responsible for transportation of the source material transferred to the Russian Federation under the Transfer Agreement; NOW THEREFORE, MINATOM and DOE agree as follows: 1. MINATOM shall make available for purchase by DOE 6,917,225.13 kilograms of feed component associated with 1997 and 1998 delivedes oflow-enriched uranium under th'e HEU-LEU Agreement. He feed component is located at Portsmouth Gaseous Difusion Plant or the Paducah Gaseous Diffusion Plant in the United States. Title, possession and risk ofloss to one-half of this feed component shall transfer to DOE 30 days after the date of entry into force of the Transfer Agreement, or 20 days after receipt by MINATOM of notification from DOE that requirements under U.S. law have been met, whichever is
.au. Ti.li, passcam2 aac risk ofloss to the second half of this feed component shall transfer to DOE 60 days after the date of entry into force of the Transfer Agreement, or 20 days after receipt by MINATOM of notification fmm DOE that tequirements under U.S. law have been met, whichever is later.
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- 2. MINATOM shall make availab!c for purchase by DOE an additional 3,082,774.87 kilograms of feed component associated with ordes for low-enriched uranium rnder the HEU-LhU Agreement for 1998 but not yet delivexed. MINA7DM shall seek to deliver tn% uranium to the United States as expeditiously as possible in 1999. MINATOM shall
. notify DOE when it is prepared to deliver 3,082,774.87 kilograms of this feed component. Title to this feed component shall transfer to DOE 30 days after the notification to DOE, unless MINATOM has not received notiScation by DOE that requirements under U.S. law have b:en met; in such case, title shall transfer to DOE 20 days after receipt by MINATOM of notiEcation fmm DOE that requirements under U.S.
law have been met. l
- 3. l MINATOM shall notify the DOE when it is prepared to provide the final 1,000,000 {
kilognms of feed component associated with 1998 deliveries. Title to this feed component shall transfer to the Department 30 days after the notificatan to DOE, unless MINATOM has not received notiScation by DOE that requirements under U.S. law have j been met; in such case, title shall transfer to DOE 20 days after receipt by MINATOM of ' notiScation from DOE that requirements under U.S. law have been met.
- 4. . l MINATOM has the responsibility for the above-mentioned feed component until the dates of transfer.
S. MINATOM has the responr.ibility for acquisition of the cylinders that contain the feed component. The purchase price paid by the United States includes rental of the cylinders that contain this uranium for as long as the uranium is owned by the United States. DOE has no further obligation to pay for use of these cylinders.
- 6. DOE shall pay MINATOM or its designee 5 204,372,560.66 upon transfer of the feed component pursuant to paragraph 1. DOE shall pay MINATOM or its designee S 91,081,984.80 upon transfer of the feed component pursuant to paragraph 2. DOE shall pay MINATOM or its designee 5 29,545,454.54 upon transfer of the feed component pursuant to pargraph 3. Such payments shal] be made electronically to AO Techsnabexport, Account No. 40702840400000000010. Convesbank, Moscow, Russian Federation, through the account of Convenbank, Account No. 04-094-462 in Bankers Trust Company, New York, New York, ABA No. 021001033, within three business days of each transfer of feed component.
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1 7. All notices and contacts concerning this agreement are to be made in writing, in English, and shall be subminci to the following addnss by mail or fax:
. D.OE:
l U.S. Department of Energy 10001ndependence Ave., SW Washington, DC 20585 phone: 202-586-5569 fax: 202-586-7210 MINATOM: Ministry of the Rnuinn Federation for Atomic Energy . Stromonetnyy per. 26 109180 Moscow telephone: 953-17-18
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ADMINISTRATIVE ARRANGEMENT 1 i 1 In order to provide for the effective implementation of the Agreement between the Govemment of the United States of America and the Government of 2e Russian Federation with respect to the transfer of source material, effected by an exchange of diplomatic notes on this date (hereinafter '%e Assurances Agreement"), the United States , Department of Energy ("the U.S. Pany") and the Minist:y of Atomic Energy of the l Russian Federation ("the Russian Party") (hereinafter "the Parties") bereby establish the following Administrative Arrangement. ; Channels of Communication Pursuant to this Administrative Arrangement the Panies will communicate directly using appropriately secure channels. Accounting for and Control of Sub_ieet Nuclear Materia.1 1 The Russian Pany shall provide nuclear matedal accounting and control covering all source meterial transferred pursuant to the Agreement between the United States I Depanment of Energy and the Ministry of the Russian Federation for Atomic Energy Conceming the Transfer of Source Material to the Russian Federation ("the Transfer i Agreement"), signed today, or any nuclear material that is substituted for such material pursuant to this Administrative Arrangement. ! The Russian Party shall provide to the U.S. Pr.ny annually by May 1, through diplomatic I channels, an ofScial repon on source material transferred pursuant to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to this Adminisnative Arrangement, which is within thejurisdiction of the Russian Federation as of December 31 of the preceding year, including a list of permitted withdrawals or sales. The repon shall include beginning and ending inventories, to include quamities, categories (natural uranium or LEU), cylinder number, gross weight, tare weight, shipper, receiver, date received, date removed from storage for shipmem from Russia (if applicable), chemical and physical form, and location. The U.S. Pany shall provide prior notification to the Russian Party of each shipment of source material to include cylinder number, gross weight, tare weight, shipper, intended receiver, date shipped (if knowr0, chernical and physicil form. and locr. tion.
The Russian Pany shall provide the U.S. Pany notification of receipt of each shipment of source material indicating cylinder number, gross weight, tare weight, shipper, inten.ied receiver, date shipped (if known), chemical and physical form, and location. Nuclear material included on the inventory shall remain listed until (a) it has, consistent with the Assurances Agreement, been transferred beyond thejurisdiction of the Russian Federation or (b) the Panies agree that it is no longer usable for any nuclear activity relevant from the point of view ofintemational safeguards or has become practically irrecoverable. The inventory of nuclear material, and the annual repon thereon, need not identify physically the panicular nuclear material initially subject to the Assurances Agreement, but shall at all times identify an equivalent quantity, provided, that the principle of equivalence shall not be used to reduce the quality of the nuclear material subject to the Assurances Agreement. In panicular, the Russian Pany may substitute low endched uranium of equivalent U 235 content for source materia) subject to the Assurances Agreement. It is understood that such substituted low enriched uranium may be delivered to the United States of America in accordance with the HEU LEU Agreement or may be delisered to elig.ible countdes or groups of countdes in accordance with the provisions of paragraph 5 of the Assurances Agreement. Such substinned low enriched uranium, upon delivery to the United States of America or a third country, will be removed fiom the inventory of nu'elear material subject to the Assurances Agreement. Monhering In order to provide con.fidence that the terms of the Assurances Agreement are be.ing implemented, the Uni.ted States of America shall have the right to conduct one armual inventory of cylinders containing uranium subject to the Assurances Agreement in storage in Russia. During this inventory, U.S. monitors shall have the right to visually check serial numbers on cylinders in storage and compare them with numbers declarea by the Russian Pany in the annual report. Additional procedures, as necessary, may be agreed upon by the Panies and will be the subject of an annex to this Administrative Arrangement. Reconinc Each pany may, at its discretion, provide access to repons prepared under this l Administrathe Arrangement. Amendment This Admini:trative Arrangement may be amended by wrinen agreement of the Panies. 4
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5 Effective Date This Adminisvative Arrangement shall enter into force upon signature. Done at Washington this twenty-fourth day of March,1999, in duplicate, each in the English and Russian languages, both texts being equally authentic.
~ FOR DIE UNITED STATES FOR THE MINISTRY OF DEPARTMENT OF ENEROY: THE RUSSIAN TEDERADON FOR ATOMIC ENERGY:
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The Department of State of the United States of America presents its compliments to the Embassy of the Russian rederation in the United States of America and has the honor to propose the following Agreement concerning the transfer of source material from the United States of America to the Russian rederation pursuant to the Agreement between the United States Department of Energy.and the Ministry of the Russian Federation for Atomic Energy Concerning the Transfer of - Source Material to the Russian rederation ("the Transfer Agreement"), signed March 24, 1999. The agreement proposed hereinaf ter shall constitute the Agreement Between the Government of the United States of America and the Government of the Russian rederation ("the Parties") regarding assurances concerning the source material transferred from the United States to the Russian rederation ("the Aza urances Agreement"), in amplementation of the
' Agreement Between the Govert. ment of the United States of America and the Government of the Russian Federation Concernihg the Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons, signed on February la, 1993 ("the HEU-LEU Agreement").
- 2. The Government of the Russian rederation agrees that no special nuclear material shall be produced by the Russian Federation or under the jurisdiction or control of the Russian rederation through the use of source material transferred pursuant to che Transfer Agreement.
- 3. The Department of Energy of the United States of .
J.merica (" DOE") and the Ministry of the Russian rederation for Atomic Energy ("MINA70M") .e , establishing an Administrative Arrangement in order to provide for the effective implementation of the 4 r
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i i 2. s: *ttt 'r 15/4 selt* provisions of th2 Assurances Agrecment. This Aoministrative Arrangement may be amended by written ' agreement between DOE and HINATOM. The principles of fungibility, equivalence and proportionality shall apply to nuclear material subject to the Assurances Agreement and the Transfer Agreement and the detailed provisions thereof shall be set out in the '
. . Administrative Arrangement.
l
- 4. The Government of the Russian Federation agrees I that:
(a) Source material transferred pursuant to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to the Administrative Arrangement, shall be subject to agreed bilateral tracking and monitoring arrangements. ~ 1 (b) Source material transferred pursuant to the Transfer. Agreement, or any nuclear naterial that is 1 substituted f or such k.aterial pursuant to the Administrative Arrangement, shall not be used for any nuclear explosive device or for research on, or cevelopment of, any nuclear explosive device, or for any other military purpose.
-(c) Adequate physical protection measures shall be maintained with respect to source material transferred
- pursuant.to the Transfer Ar;reement or any nuclear material that is substitut.ed for such material pursuant to the Administrative Arrangement. To fulfill this requirement, such measuf;es shall be applied in accordance with levels of physical protectier. at least equivalent to the recommendations published in the IAEA document INFCIRC/225/Rev.4 entitl'ed "The Physical Protection of Nuclear Material," or a subsequent revision accepted by the Parties. J Id) Soutce material transferred pursuant to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to the Administrative Arrangement, shall not be transferred to i
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uncuth= razed porsens or b2yend the Jurisdiction er
- control of the Russian receration without the prier t
i consent of the Government of the United States of America. (e) Source material transferred pursuant'to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to the Administrative Arrangement, shall not be reprocessed or l altered in form or content without the prior consent of the Government of the United States of America. (f) Source Raterial transferred pursuant to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to the Administrative Arrangement, shall not be enriched without the prior consent of the Government of the ~ United States of America. 5. The Government cf the United States of America agrees that source material transferred pursuant to the Transfer Agreement and los enriched uranium substituted fer source material transferred pursuant to the Transfer Agreement may, pursuant to contracts existing on the date of entry into force of the Transfer Agreement, be retransferred by the Russian rederation to countries or groups of countries with which the United States'of America has in force an agreement for pea'ceful. nuclear cooperation and that are otherwise acceptable to the United States. The list of acceptable countries or groups of countries is set forth in the Annex to the Assurances Agreement. The Government of the United States of America may add eligible countries or groeps of countries to the list
,at any time, and may delete countries or groups of countries from the last following consultations with the Government cf the Russian federation. MINATOM shall keep records of such retransfers and shall promptly notify an agency designated by the Government of the United States of America of each retransfer.
Praor to each retransfer, HINATOM shall confirm in writing to the aforesaid agency of the Government of 1 1 i
. 44, sta ss . 4:- e f:- .r.:a A1s u* 44 a : -::: -
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<- th2 UnitGd Statos of Ameraca that the nec* ear material to be retransferred will be subject to an agreement for peaceful nuclear co-operation between the Unitec States of America and the countries or groups of countries
, receiving the nuclear' material.
G. The Parties agree that if the Transfer Agreement
. . is terminated, any source material transf erred pursuant to the Transfer Agreement, or any nuclear material that is substituted for such material pursuant to the Administrative Arrangement, will continue to be sub3ect to the conditions set forth in the Assurances Agreement:
- 7. Subject to the above, source material transferred pursuant to the Transfer Agreement may be used, as specified in Article 7 of the Transfer Agreement, for ciluting HEU for delivery as LEU to the United States cf America under the HEU-LEU Agreement or for sale in accordance with the Commercaal Agreement and paragraph 5 of the Assurances Agreement.
If tnese proposals are acceptable tc the Gevernment of the Russian Federation, it is further proposed that this note, together with the Embassy's af firmative note of reply, on behalf of the Government of the Russian rederation, shall constitute an agreement between the Government of the United States of America and the Government of the Russian Federation (the " Assurances Agreement"), which shall enter into force on the date of the Enbassy's note in reply.
Enclosure:
one page as incicatec. {7 Department of State, Washingten, March 24, 1999.
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The ArsenuneRepub!!c Australia The Republic of Bulgaria Canada The People's Republic of Chma The Czech Republic European Atomic Energy Cominunity The Republic of Hungary Japan j The Republic ofKorea j Norway , The Republic of Poland The Slovak Republic The Republic of South Africa Switzerland j l s j
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FINDING OF NO SIGNIFICANT IMPACT FOR THE DISPOSITION OF RUSSIAN FEDERATION TITLED NATURAL URANTUM ISSUED BY: United States Department of Energy ACTION: Finding OfNo Significant Impact l l
SUMMARY
- The United States Department of Energy (DOE) proposes to l
submit a license application to the U. S. Nuclear Regulatory Commission (NRC) that would allow up to 9,000 metric tons of natural uranium (0.711% U 235) that is Russian i Federation titled and stored at DOE's gaseous diffusion plants (GDPs) at Portsmouth, OH l and Paducah, KY, which are leased to the United States Enrichment Corporation, to be ; shipped to the Russian Federation each year until the year 2013. The natural uranium would be shipped to the Russian Federation in exchange for low enriched uranium (LEU) blended down from highly enriched uranium (HEU) from disassembled Russian nuclear j weapons under the United States / Russian Federation Government-to-Government Agreement. DOE has prepared an Environmental Assessment (EA) of the overland truck l shipment of Russian titled natural uranium in the form of uranium hexafluoride (UF6) i from the GDPs to the ports of Hampton Roads, VA and Baltimore, MD and thence via l seagoing cargo ship to the Russian Federation port of St. Petersburg, Russia. Based upon i the analyses in the EA, the DOE has determined that the Proposed Action is not a major actio.; significantly affecting the quality of the environment, and preparation of an Environmental Impact Statement is not required. A draft of the EA was sent for comment to the State governments of Ohio, Kentucky, Virginia, and Maryland, and to the United States Department of State and the United States Nuclear Regulatory Commission. Comments were received and taken into consideration from the States of Maryland and Kentucky. FOR FURTHER INFORMATION AND/OR COPIES OF DOE /EA 1290, CONTACT: Mr. Robert M. George U. S. Department of Energy, NE-30 1990lGermantown Road Germantown, MD 20875 Mr. George may also be reached by calling (301) 903 5727. l 1
SUPPLEMENTALINFORMATION Background . In February 1993, the United States and the Russian Federation signed the United States / Russian Government-to-Government highly enriched uranium (HEU) agreement for the disposition and purchase of 500 metric tons of HEU extracted from Russian nuclear weapons. Pursuant to this HEU agreement, the U.S. Executive Agent, the U.S. Enrichment Corporation (USEC), and the Russian Executive Agent, Techsnabexport (TENEX) executed an implementing contract that provided for prompt payment for the enrichment component of the low enriched uranium (LEU) derived from the HEU and delivered to the United States. With regard to the natural uranium component of the LEU, this initial contract provided for paymera either when sold or utilized for overfeeding the gaseous diffusion plants by USEC. However, sale of this component in the U.S. was complicated by a large oversupply of uranium in the market, limited demand, unattractive market prices and restrictions on the amount of Russian-origin uranium allowed into the U.S. market. In September 1996, USEC and TENEX contracted to implement provisions of the USEC Privatization Act that freed USEC of responsibility for the natural uranium component
. related to the shipments of LEU.
On March 24,1999, the United States Depanment of Energy (DOE) and MINATOM entered into an agreement that provides for the shipment of any natural uranium not purchased under commercial agreements to the Russian Federation, subject to meeting requirements under United States law, including the National Environmental Policy Act. Proposed Action. - DOE could submit a license application to the NRC that woula allow up to an average 9,000 metric tons of natural uranium (0.711% U-235) that is stored at the GDPs to be shipped to the Russian Federation each year. It is anticipated that for most of this
. period, significantly less than that amount would be shipped back to the Russian Federation because of purchases by westem uranium companies under a contract between the Russian Federation and the companies. Implementation would require that the NRC grant a license for the export of the material, consistent with other U.S. nonproliferation requirements.
EnvironmentalImpacts Annual shipment of 9,000 metric tons of natural UF6 - the maximum amount that would be shipped in a year - from the GDPs overland to Hampton Roads, VA or
' Baltimore, MD, and thence by ocean going freighter to St. Petersburg, Russia entails
- little or no risk to the' quality of the environment or to human health from exposure to 2
L .
p
.a radiation or chemical hazards associated with the shipment. Uranium hexafluoride has l been shipped safely around the world by sea for more than 30 ycars. There has never been an accident involving its release during transport.
The implementation of the' Agreement is expected to result in stability in the world wide uranium market and is expected to have little or no adverse socioeconomic impsht on the domestic uranium industry. DETERMINATION' The Proposed Action to submit an export license to the NRC and then ship up to 9,000 metric tons per year of natural uranium as UF6 (Russian Federation-titled) by truck'- from the Portsmouth and Paducah gaseous diffusion plants to either Hampton Roads, VA l or the port of Baltimore, MD and thence by ocean going freighter to St. Petersburg, Russia, and to continue these shipments for up to 15 years, entails insignificant impacts L and low risks. The action does not constitute a major federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act. Therefore, based upon the analyses in the EA, an Environmental Impact Statement is not required, t Issued this 4 dayof b J99,in Washington, DC.-
-7 Q _h Jm Wu:~ , RIM 4w_
William D. Magwoo5,h Director Office of Nuclear Energy, _ Science and Technology United States Department of Energy
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SEP-16-1999 16:17 NP/NEA 222 617 0775 P.22>12 3 United Stttes Department of State
%Aington. D.C. 20520 September 16,1999 Ms.Janice Dunn Lee Director, International Programs United States Nuclear Regulatory Commission Rockville, Maryland
Dear Ms. Lee:
I refer to the letter from your office dated July 1,1999 requesting the l views of the Executive Branch as to whether issuance of an export license in i accordarice with the application hereinafter described meets the applicable ! criteria of the Atomic Energy Act of 1954, as amended (AEA): l NRC No. XSOU8767 - Application by U.S. Department of Energy fcir i authorization to export to the Ministry for Atomic Energy (MINATOM) in Russia up to 135,000,000 kilograms of natural uranium in the form of ' uranium hexafluoride over a 15 year period at an average rate of up to 9,000,000 kg per year. The natural uranium may be used only in accordance with the relevant agreements, including for: 1) blending down highly enriched uranium (HEU) to low enriched uranium (LEU); 2) storage; and 3) for sale outside of Russia. These exports will be pursuant to the Agreement between the U.S. Department of Energy and the Russian Federation Ministry for Atomic Energy Concerning the Transfer of Source Material to the Russian Federation, signed in Washington on March 2/.,1999 ("the Transfer Agreement"). It is the judgment of the Executive Branch that the proposed export of this source material for nuclear use would not be inimical to the interests of the United -States including the common defense and security, and is consistent with the provisions of the AEA. The Executive Branch has concluded that this expon of source material for nuclear use can be made by DOE as a distribution under NRC license pursuant to section 64 of the AEA without a section 123 agreement for cooperation. A+%kmed 0
==- .e . :: 6e..< ri-ns:- 2C2 647 C775 F . 03/ '.2 2
The United States. has obtained written Russian Government commitments in an exchange of diplomatic notes dated March 24, 1999, confirming that the source material transferred to Russia in support of the HEU Agreement will be subject to all of the non-proliferation conditions and controls required by U.S. law, including those set forth in section 127 of the AEA. A copy of the U.S. note and the Russian reply is enclosed with this letter. On the basis of the foregoing, the Executive Branch recommends issuance of the requested license. Sincerely,
.)
Richard J. K. Stratford Director Nuclear Energy Affairs
Enclosures:
as stated. 4
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- 3. MannerepcTso saeprtTarn CoenamennMx I.UTaTom Awepara ("Munsnepreraxn") n MunacTepeno PocceAcron i
@enepanna no aTownot anepran ("ManaTow") saxniogajor AnwanucTpaTunnyno Horosopennocn ans o6ecnegenna i 3$$exTnanoro scnonnenus nonoxenan Cornamenna o sanepennsx. B AnunsucTpaTassyso Aorosopensoen woryr !
suocancs uswesenns a sononnenus no nachwennowy cornamennio Mexny MuusnepreTurn a Munaroxow. Ho ornomennio x anepnowy waTepnany, smnsiomewyes apenweTow Cornameans o samepennax n Cornamenus o nepewemenna, npuwensioTcs npununnu saanwosawensewocTn, 3KansanenTaoCTs a nponopunoBanbnoCTn, a sMTeKaiomme a3 unx neTanbnMe nonoXenus a3n&I110Tes a AnunnacTparnanoi l MorVsopennoCTn.
- 4. UpannTenbcTso PocenAcron Genepannn cornamaercs cTew,yTo:
(a) Hexonuw2 Marepnan, nepewemaewug a cooTsetcTsun c Cornamennew o nepewemenna, ann nio6on snepsut warepnan, sawemaionmA nexoxnun warepnan a coorsercTann c AnwanacTpaTusson RorosopennocTwo, nonnanact non AeAcTane cornacosansMx AorosopennocTen o Amyctoponnew oTenexananna a na6JDonenan. 4 W
SEP-16-1999 26818
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nepewemaewut a coorseTcTsan c Cornamennew o i nep6McIneHnH, Molyr a CooTseTCTnHE C KoHTpaKTaMn, cymecTsynommun na na17 scIynnenna a cany Cornameans o nepewemenna,6un nocTannens Pocenicron @enepaunen s 6 2
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. AuepnKn. Cnacox upneunewux cTpan una rpynn cTpan npasenen a Upanoxeuna x Cornamensio o sasepennnx.
ITpannTenseno Coennsenaux IUraTom Auepaxx woxer a nio60e speux mononnan enacox npneunewsrx c1 pan ann rpyrrrr espan, a Taxxe uoxer acxmosun na sToro camera cTpasu ann Ipynnu cTpan noene Koneynsraunt c UpaanTe.nscnow PocenneroA Geneparina. ManaTow sener sannen Taxax nocTanox n 6esornar2Te.asso nasemaer maanasennoe UpannTenscTsow Coennnennux IUTaron Awepuxu senowcTso o Kaxnon noCTasKe. nepen raxaon nocrasKon ManaTou nuesuenno nonTsepxnaer numeynoussyroxy senoweny, qTo nepenasaewan saepuun waTepnan 6yner nonnanars non menenne cornamenna no coTpynansecray a o6nacts unpuoro acnons30sanas snepson saepran Mexny Coennnennstwa
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, EES-16-19H 16:15 N5/NEA 2c2 647 c775 F. ice 12 ' ., y 3aMemaloIIInN acXonnu2 MaTepnan B CooTseTcTann C AnunnacTparasson HorosopennocThio, IIpononzaeT nonnasan non ycnosas, onpenenenaue Comamennew o 3asepennzx.
- 7. Upn ycnosasx, onpenenennux nume, acxonnun I
uaTepnan, nepeMemacMLIA s cooneTcuna c CornamenneM o nepeMemenan, Moxer 6mn acnonssosas cornacao Crane 7 Cornamenas o nepewemenna ans pa36aanenns nMCOKoo6o!amennoro ypana anA noCTasKn a enne an3Koo6oramensoro ypana a CoennaeusMe Grant AMepnKu a coorserenna e CornamenneM or 18 $espans 1993 rena anu nas uponax s coorseTCTanH c KoMMepsecxnu CornamenneM n i nynKToM 5 Cornameans o samepennzx. Ecna numen3noxeunoe npneunexo anx UpannTensersa Pocenicron Genepanan, npennaraerca,9To6a sacrosmas nota a oneTuas nora HoconscTsa c supamennew cornacas cocTassT Cornamenne nexny HpasnTenscTson Coenanennux WTaTon
' Aweparn a HpannTenscTsoM PoccuBCKoS Genepanna o
~
samepennax s ornomenna npuponsoro warepnana, nepenasaeworo na Coenanenusrx WTaTos AwepnKn n
.PocenacKyro Genepannio, KoTopoe scTynar a cuny c nant ornernog nont Hoconbena."
HoconseTso or nuenn Upa.snTenscTsa Poccanexon
, @enepannu axeer seen coo 6 man,9To npennoxenne, coneprameecs a numeyxasannon note Tocynapeneunoro
SEP-16-1999 16 19 NP/NEA 202 647 0775 P.11/12 . 8 nenapraweara CoenuseansIx Wraros Awepuxa, npaeunexo anx UpasnTenbersa Poccanexon GenepaIInn, a Taxxe, sTo sora rocynapermeanoro nenapraweara CoennaenasIx Wraron Awepuxn a sacrosInas orseTsas sora cocTasar CornaInenne werny nannwa nsyus Upasarensersaun, xoTopoe scTynnr a cany c nant nacrosinen norsr. HoconscTao PocenAcxo2 @enepanna s Coennsenaux Wrarax Awepuxu nonssyercs cnywaew, sto6u noso6 sonars TocynapcTseanowy senaprawenTy Coenusenaux Wraros AwepHKH ysepCHER s CsoeM sucoKoM yBaXenHH. ITpunorenne: ynoussyToe, na 1 n.
- r. BanInstro 't apra 1999 rena s e ***y l
e e l
r =- 4=
=== 2o.co n~ n=- . . e-, c<ra r..g.t . 1
. i
',' 9 l e
Upnnorenne , l l l CDMCOK i enan a rpynn evan, onpenenenaux s coorsercTsun e nynxTow 5 Cornamenu o sanepeansx 1 Ascganns AprenTunexas Pecay6naxa BenrepcKax Pecny6nura Kanana KnTanexas Haponnas Pecny6nura 1 KoponescTso Hopseras Pecny6nara Eonrapan Pecay6naxa Kopex
. Pecny6nuxa Honsma Cnosauxas Pecny6,nara Cyans Esparowa tiemerax Pecny6nuxa UlmeAnaperan Kon$enepanns IOxnas A$puxa finosus i
l TOTAL P.12
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