ML19331C982
| ML19331C982 | |
| Person / Time | |
|---|---|
| Issue date: | 07/28/1980 |
| From: | James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP) |
| To: | |
| References | |
| TASK-CA, TASK-SE SECY-80-354, NUDOCS 8008270006 | |
| Download: ML19331C982 (4) | |
Text
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THIS DOCU'jENT CONTAINS P00R QUAUTY PAGES July 28, 1980 SECY-80-354 COMMISSIONER ACTION For:
The Comissioners From:
James R. Shea, Director Office of International Programs e
Thru:
Acting Executive Director for Operations
Subject:
PROPOSED LICENSE TO EXPORT LOW-ENRICHED URANIUM FOR MAANSHAN UNITS 1 AND 2 IN TAIWAN (SECY-80-317) (XSNM-1431)
Purcose:
Comission review of proposed issuance of subject license to Westinghouse Electric Corporation.
Review Date:
60-day period expires on August 14, 1980.
120-day period expires on October 14, 1980.
Discussion:
In December 1978, Westinghouse Electric Corporation applied for a license to export to Taiwan 325,822 kilograms of uranium in the form of fuel assemblies containing uranium dioxide enriched to a maximum of 3.3 percent U-235 (see SECY-80-317, July 1, which forwarded the views of the Executive Branch on this case). The material will be used for the initial cores and three reloads each for the Maanshan nuclear power reactor Units 1 and 2 (formerly Taiwan Units 5 and 6). The application l
also covers an additional four fuel assemblies for contingencies.
The Maanshan Units 1 and 2, located near the southernmost tip of Taiwan, are 907 megawatt electric, pressurized-water reactors.
Unit 1 is scheduled to begin comercial operation in October 1984; Unit 2 in October 1985. Fuel shipments under this proposed l
Ifcense are scheduled to begin April 1983 and end April 1990.
However, the applicant has advised us that, because its contract with Taiwan Power Company provides for an emergency fuel assembly l
l supply of four additional assemblies in case of a mechanical
.fallure durino oceration, they have requested that t.ta license._The be valid until 2024, the designed life expectancy of tliii plant.
Executive Branch (see SECY-80-317, July 1) has recomended that the license be val'id only f'or a period of eight years after the firsr
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_ shipment (April 1983) or until April 1991, and limited to the initial
Contact:
William Upshaw, IP (49-28155)
On 600g'a70
o The Commission 2
Discussion:
cores (including the four spare fuel assemblies) and three (Continued) reloads for each reactor.
In our subsequent discussion with Westinghouse about this matter, they agreed that the Executive Branch's limitations were acceptable.
In connection with its review of this application, the i
Executive Branch has (1) concluded that the issuance of the license, if limited as proposed, would not be inimical to the common defense and security of the United States; (2) confirmed that the material will be subject to the June 1972 agreement for cooperation between Taiwan and the U.S., as amended in June 1974; and (3) confirmed that Taiwan has adhered to the provisions of that Agreement.
Based upon our independent analysis of this case and the Executive Branch'.s views. Ip has determined that Taiwan meets all of the relevant criteria of the Atomic Energy Act, as amended, and, accordingly, that the license should be issued.
Additional copies of the Executive Branch views of June 12 and a copy of the license application are attached at Appendices A and B, respectively. A copy of the proposed license is attached at Appendix C.
International Facility Attachments - IAEA safeguards for the proposed export Safeguards and will be applied under the U.S. trilateral safeguards agreement physical which entered into force on Decenber 6,1971.
Facility attach-Security ments have not been devr oped for the reactors covered by this Review:
export license applicat Jn.
The IAEA would not expect to receive design information until the reactors are in an advanced stage of construction, at which time the appropriate facility attachment (s) could be prepared. The staff does not expect that the IAEA would have any problems in completing the necessary facility attachment (s) at the appropriate time.
Safeguards Effectiveness - A technical assessment of safeguards in Taiwan was transmitted to the Commission in SECY-79-537A.
Although insufficient information is available to completely evaluate the effectiveness of safeguards in Taiwan, the staff believes that the control of and accounting for the reactor fuel assemblies, on an item basis, will be within Taiwan's capabilities and will pose no unusual safeguards problems for the IAEA.
Full Scope Safeguards - It is our understanding that all nuclear materials. equipment and facilities currently in Taiwan are subject, where appropriate, to IAEA safeguards pursuant to bilateral and trilateral arrangements with the U.S.
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specifically, in examining the status of safeguards in Taiwan, the staff reviewed such matters as material that is exempted or suspended from safeguards coverage pursuant to current IAEA agreements, the status of safeguards at other power reactors in Taiwan, and the status of facility attachments for research and development laboratories.
Physical Security - Staff has reviewed the physical security program in Taiwan and found it adequate for the purpose of this export.
Recommendation:
That the proposed license be issued to-Westinghouse Electric Corporation.
Coordination:
ELD has no legal objection. NMSS views are presented in the context of the International Safguards and Physical Security Review.
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. Shea, Di to
'ffice of International Programs
Enclosures:
- 1. A - Executive Branch Views of June 12
- 2. B - License Application of December 1978
- 3. C - Proposed Export License XSNM-1431 Commissioners' cc,ments should be provided directly to the Office of the Secretary by c.o.b.
Tuesday, Aucust 5,1980.
Commission Staff Office conments, if any, should be submitted to the Commissioners NLT August 1,1980, with an information copy to the Office of the Secretary.
If the paper is of such a nature that it requires additional time for analytical review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.
I DISTRIBUTION l
Commissioners Commission Staff Offices Excc Dir for Operations S:cretariat 1
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BUREAU ~ OF OCEANS AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS
)CLD v~ m-XSNM 01N3 l A June 12, 1980
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3 @ Q }vg mmK MEMORANDUM FOR JAMES R.
SHEA NUCLEAR REGULATORY COMMISSION Enclosed is an Executive Branch analysis covering a license application for the export of low-enriched uranium to Taiwan.
In accordance with P.L. 9 5-242, the analysis explicitly addresses how the requirements of Section 126 a.
(1) of the Atomic Energy Act are met, including the spe-cific criteria of Sections 127 and 123, as well as certain additional factors, envisaged by Section 126 a.
(1).
The Executive Branch, on the basis of its review of this case, has concluded that the requirements of the Atcmic Energy Acr as amended by ?.L. 9 5-24 2 have been me t and that the proposed export would not be inimical to the common de-f ense and security of the United States.
Moreover, Taiwan has adhered to the provisions of the applicable agreemen-for cooperation and continued U.S. cooperation under this agreement is authoriced by the Taiwan Relations Act of 1979.
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EXPORT LICENSE APPLICATION ANALYSIS l
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XSNM01431 Recipient:
Taiwan Transaction:
The export of 8,845 kilograms of
U-235 contained in 325,822 kilo-grams of uranium in the form of fuel assemblies containing uran-
- -. - lum diexide enriched to a maximum of 3.3 percent U-235 Applicant:
Westinghouse Electric Corporation Applicant's
Reference:
ICS-7823 Dite of' Application:
Nopedber17, 1978 -
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Purpose' 'ol Ex6cr"E ' '
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This enriched uranium dioxide incorporated into f abri-cated fuel assemblies will be shipped to the Taiwan Power Co,mpany,in Taiwan f or th.e,init.ial cores and reloads f or the
- -taanshan nuclear power reactor e -units one and two (formerly designated as Taiwan Units 5 and 6)..
An extra margin of 4 fuel assemblies has been included in the quantity of mate-rial requested for contingencies.
The Maanshan Units 1 and 2 are 907 megawatt electric pressurized water reactors supplied by Wesringhouse.
Lo-cated near the southernmost tip of Taiwan, che reactors are owned and will be operated by the Taiwan Power Compar.y.
Unit 1 is scheduled to begin conmercial operation in October 1984; Unit 2 in October 1985.
Shipments of the fuel mate-rial are scheduled to begin April 1933 and end April 1990.
Westinghouse has requested that the license be valid until the year 2024 to correspond to the designed life of the reactors.
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Coordination Ccimcil for Nord Americ.n Affairs Office in U.S.A.
5161 River Road, Wuhingten, D.C. 20016 October 15,1979 51 - 68024
Dear Mr. Denn:
I wish-to refer to your three;1,etter.s all. dated S.eptem.b.e.r_21,1979 and my interim reply dated October 2,1979 'cbhce~rning shiphients of. nuclear materials for Taiwan Power Company, Taip.ei, 'fa.iwan', Republic'of China, as follows:
(1) five CS-1 plutonium-229 alpha check source electroplated on stain-less steel for mounting on eberline AC-3 probes from Ebeline Instrument Corporation, Santa Fe, New Me:cico; (2) reload fuel for Kuo-sheng Units 1 and 2 from General Electric Co.,
San Jose, California; and (3)--nechar-fuel regions 1 through and including region 6 for Maanshan Units 1 and 2 utilization facilities from Westinghouse Electric Co., Pittsburgh, Pennsylvania.
I have been requested by the appropriate authority in Taipei to
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(1) transfers of the above-mentioned materials will be subject to all that:
terms and conditions of the Agreement for Cooperation on Civil Uses of the Atomic Energy signed between our two countries on April 4,1972 and entered into forc'e' on June 2,1972 and amended on March 15, 1974; (2) physical security measure comparable to that set forth in IAEA INFCIRC/225/ Revision I will be strictly maintained; and (3) Taiwan Power Company is authorifed to possess and receive the
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I shall appreciata it very much if export licerses can be issued against the applications as soon as possible.
l Sincerely yours, he J
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a Kon_in C. Shah Mr. David Dean Rep.heittative Chairman of the Board and Managing Direc+4r American Institute in Taiwan 1700 N. Moore St., I?th floor Arlington, VA 22209
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Acolicable Acreement for Coooeration The proposed export is subject to all of the terms and conditions of the applicable ageement for cooperation which entered into force on June 22, 1972, as amended on June 14, 1974 (23 UST 945, TIAS 7364; 25 UST 913, TIAS 7334).
This was confirmed in a letter f cm the Coordina-tion Council for North American Affairs,, a copy of which is enclosed.
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Taiwan has adhered '.o all provisions of that agree-ment for cooperation.
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Extent to Which Execrt criteria Are Met A.
Section 127 Criteria As provided in Section 127 of the Atomic Energy Act, the following criteria govern exports for peaceful nuclear uses from the United States of source material, special -
nuclear material, production or utilization f acilities, and any. sensitive nuclear technology:
criterion (1)
'IAEA safeguards as required by Article III(2) of the Treaty will be applied with respect to any such material or facilities proposed to be exported, to any such material or f acilities previously exported and subject to the applicable agreement for cooperation, and to any special nuclear mate-rial used in or produced through the use thereof."
Taiwan remains bound by Non-Proliferation Treaty (NPT).
As a result of Taiwan's expulsion from the IAZA in December 1971, an NPT safeguards agreement has not been concluded between the IAEA and the authorities on Taiwan.
However,-
IAEA saf eguards, essentially comparable to those required under the NPT, are in effect on all nuclear material and f acilities on Taiwan under a trilateral safeguards agree-ment, pursuant to INFCIRC/66/Rev. 2, which enrered into force on December 6, 1971 (22 U.S.T.
1837, TIAS 7228).
Should the IAEA terminate the application of safeguards on Taiwan for any reason, the United States has the right to apply bilateral safeguards in lieu of IAEA safeguards pur-suant to the applicable agreement for cooperation.
Therefore, it is the Executive Branch view that criterion (1) is met.
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Criterion (2)
"No such material, facilities, or sensitive nuclear technology proposed to be exported or ereviously exported and subject to the applicable agreement for cooperation, and no special nuclear material produced through the use of such materials, facilities, or sensitive nuclear tech-nology, will be used for any nuclear exp,losive device or for research on or development.og :any nuclear explosive d e v ic e'. "
Since it remains bound by the obligations under the N?T, Taiwan is committed not to develop or use nuclear explosive devices for any purpose.
Moreover, the auther-ities on Taiwan have provided separate assurances to the g.S. in this regard.
Therefore, it is the Executive Branch view that cri-(2) is met.
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Criterion (3)
" Adequate physical security measures will be main-tained with respect to such material or f acilities pro-posed to be exported and.to any special nuclear material used in or produced through the use thereof.
Following the effective date of any regulations promulgated by the Commission pursuant to Section 304(d) of the Nuclear Non-Proliferation Act of 1978, physical security measures shall be deemed adequate if such measures provide a level of protection equivalent to that required by the applica-ble regulations."
The Executive Branch has assessed'*the physical secur-ity measures maintained by the authorities on Taiwan with respect to nuclear material and facilities and determined that they are adequate for the material covered by this ricense application.
The Coordination Council for North American Affairs has provided by letter, a copy of which is enclosed, assur-ances that the material covered by this export request will be accorded physical protection consistenc wi:h INFC:RC/-
225/Rev.
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Therefore it le the view of the Ixecutive Branch that criterion (3) is met.
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Criterion (4)
"No such materials, f acilities, or sensitive nuclear technology proposed to be exported, and no special nuclear material produced through the use of such material, will be retransferred to the jurisdiction of any other nation or group of nations unless the prior approval of the United States is obtained for such retransfer.
In addition to other requirements of law, the United States may approve such retransfer only if the nation or group of nations designated to receive such retransfer agrees that it shall
- be subject to the conditions required by this section."
Article X (3) of the applicable agreement f or cooper-ation, as amended in 1974, stipulates that no material, including equipment and devices, transferred pursuant to the agreement will be transferred to unauthorited persons or to the jurisdiction of another nation or group of nations, unless the U.S. agrees to such a transfer, and then only if, in the opinion of the U.S., the transf er i
cf the material is within the scope of an Agreement for Cooperation between the Government of the United 5tates of America and the other nation or group of nations.
Article VIII E. of the applicable agreement, as a= ended in 1974, provides that no special nuclear material produced through the use of material transferred pursuant to the agree =ent will be transferred to the jurisdiction of any other nation or group of nations, except as the U.S. may agree to such a transfer.
These articles give the U.S. an unqualified approval right over the retransfer of material from Taiwan supp, lied by the U.S. or special nuclear material produced through the use of such material.
Therefore, it is the Executive Branch view that, as the U.S. has the right of prior approval over retransfer of U.S. supplied material and material produced through the use of U.S. material, criterion (4) is met.
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"No such material proposed to be exported and no special nuclear material produced through the use of such material will be reprocessed, and no irradiated fuel elements containing such material removed from a reactor shall be altered in form or content, unless the prior approval of the United States is obtained for..such reprocessing or alteration..
Article VIII C. of the applicable agreement for cooperation, as amended in 1974, requires a joint de-termination of the United States and the authorities on Taiwan prior to the reprocessing, or alteration in form or content of any irradiated fuel elements con-taining fuel material received from the United States I
of America pursuant tc this Agreement.
As no joint determination under Article VIII C.
can be i
made without the agreement of,the United States, and since the facilities to be used must be acceptable to the U.S.
as one of the Parties, it is the view of the Executive 3 ranch that criterion (5) is mee.
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Criterien (6)
"No such sensitive nuclear technology shall be ex-ported unless the foregoing conditions shall be applied to any nuclear material or equipmen: which is produced or constructed under the jurisdiction of the recipient nation or group of nations by or through the use of any such exported sens tuive nuclear technology."
The proposed export does not involve the transfer of sensitive nuclear technology.
Criterion (6) is, therefore, not applicable.
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Section 128 Criterion Section 128 A.
(1) of the Atomic Energy Act estab-lishes the following additional criterion:
"As a con-dition of continued United States export of source mate-rial, spectil nuclear material, production or utili:ation f acilities, and any sensitive nuclear technology to non-nuclear-weapon states, no such export shall be made un-less IAEA safeguards are maintained with respect to all peaceful nuclear activities in; under the jurisdiction of, or carried out under the control of such state at the time of the export."
Since Taiwan is bound by the obligations of the N?T, it has accepted IAEA safeguards on all its nuclear activi-ties, thereby satisfying this criterion.
(Note special conditions set forth under criterion (1) in Part A.)
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Addi:ional Factors A.
Safecuards Imolementacion The IAEA Secretariat has noted in its special Safe-guards Implementation Report that with regard to nuclear material subject to IAEA safeguardsr while some deficiencies exist in the sys tem, no diversion of a significant quantity of nuclear material was detected in any of the 45 states in which inspections were carried out.
Although recognizing the need to correct existing deficiencies in safeguards im-piementation, the Executive Branch has no reason to believe.
that the IAEA Secretariat's reporc is not valid.
In the light of this and other f actoes associated with tse pro-posed export, the Executive Branch believes the framework of commitments, assurances, and safeguards is adequate for the purpose of this export.
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Inimicality Judement Based on review of the proposed export, it is the judgment of the Executive 3 ranch that the proposed export will not be inimical to the common defense and security, and that the license 'should be issued, provided the validity is limited for eight years from the date of first shipment (April 1983) or until April 1991 and the amount limited to initial core and three reloads.
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to the license authorizing the esport of the meteriais and/or production l:
Purmasnt to the Atomec Energy Act of 1954, se amended,and the Energy er utilization facilities listed below, sabiect to the terms and conditions !
)n; f,'n.org.niz.t.on Act of is74 and tne re,,netions of the Nuct herein.
commim,on ismied pur ant mercio, and in reiience on statements no reore tation. hereiovo,e maa. by me iie.n.e. ac.n. is nere y 1.u.d vi.TiuATE cDNsioNEE iN pOREics cOusTRv ucENSEE 1
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l Pittsburgh., Pennsylvania 15230 Taipef e Taiwan Republic of China l,k (Icitial core and three re' loads including lE l'
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four spara assemblies, each for Maanshan tf i l'.
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d ATPUCANTS REF.NO. ICS-7823 I8,845 DESCRIPTION QP MATERIALS OR P ACIUTIES i,
QUANT 17Y i
kilograms Uranium-235 Contained in 325,822 kilograms uranium, as uranium dioxide sintered pellets encapsu-3 latad in sealed fuel rods and assedled into fuel assemblies, j.
Conditions 6 and 8'on page tWo of 'this license apply lo this export.
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-lIl TNIS UCENSE IS INV AuO UNLESS SIGNED SEl.OW SY AUTMORIZED NRC REPRESENTATIVE Neither this license nor any right under $6e lleones she(I be assigned or ctherwise transeerred in violation of the Movisione of the Atomic Energy h B. Devine, Assistant Director
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Act of 1954, se amenced and the, Energy Aeorgentzetion Act of 1974 Export / Import and Intarnational Safeguards 3?
'4g This license is m.biect to the right of recapture or control by Section 108 of 01'1' ice oi' Intamtiod %m E
l the Atomec Energy Act of 1954, se amended and to ad of the othar provi-E l s.ona of said Acts. no or hereseter in oefect and to si wwid run.e and 5 ATE OF ISSU ANCE l.egulations of me Nucseer Reguietory Commismorr.
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