ML20209C138

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Responds to Re NRC Role in Implementation of Anti-Apartheid Act of 1986
ML20209C138
Person / Time
Issue date: 04/13/1987
From: Zech L
NRC COMMISSION (OCM)
To: Simpson A
SENATE, ENVIRONMENT & PUBLIC WORKS
Shared Package
ML20209A941 List:
References
NUDOCS 8704280599
Download: ML20209C138 (11)


Text

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UNITED STATES g

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April 13, 1987 CHAIRMAN The Honorable Alan K. Simpson Subcommittee on Nuclear Regulation Committee on Environment and Public Works United States Senate Washington, D.C.

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Dear Senator Simpson:

I am responding to the questions in your letter of March 5 concerning NRC's role in the implementation of the Anti-Apartheid Act of 1986.

I also have provided a short summary of the status of the Commission's implementation efforts.

Following the enactment of the Anti-Acartheid Act of 1986, the Commission's General Counsel prepared a legal analysis which concluded that the Act does not han the import of non-oxide forms of uranium or uranium which has been substantially transformed (e.g., uranium hexa fluoride).

The analysis concl'uded that the ban does apply to all South African-origin uranium ore or oxide, whether iritended for domestic use or for processing and subsequent reexport.

In the absence of formal Executive Branch views on the scope of the Act, and in order to meet the implementation deadline in the Act, the Commission subseouently revised its import regulations on December 31, 1986 to innose specific licensing requirements for all imports of South African-origin uranium.

While this revision did not specifically ban such imnorts, it did ensure that they will be subject to case-by-case review and approval pending receipt of Executive Branch views on the matter.

Since the issuance of NRC's revised import licensing requirements, eight new applications for licenses to import South African uranium have been received.

One was subsequently withdrawn.

In response to our request for comments, the Executive Branch has recently recommended issuance of these licenses.

The approval recommendations are i,n accord with the Treasury Department's interpretation of the scope of the uranium import ban, as contained in regulations published in the Federal Registar on March 10, 1087.

The applications are also the sub.iect of an intervention petition submitted by several Congressnen and other interested parties which recommends that they be denied.

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Commission is now reviewing the Executive Branch's position, along with all other relevant information, and has not yet reached a final conclusion regarding the license applications.

As a related matter, the NRC is currently reviewing the status of several existing import licenses which might be used as the authority to import South African origin material.

These existing licenses are the subject of a petition for revocation filed by certain members of Congress and other individuals.

I will advise you promptly of the Commission's decision on these pending matters.

Please let me know if I can be of any further assistance.

Sincerely M,

Lando W. Z h, Jr.

Enclosures:

Detailed answers to questions with attachments.

4 i

1

F QUESTION 1.

Please describe the regulations adopted by the Commission.

What types of South African uranium are prohibited under the Commission's regulations and what procedures have been established to ensure that all such uranium is properiv identified and treated accordingly?

ANSWER:

Prior to December 31, 1986, NRC regulations permitted the import of most forms of uranium under general license (i.e., no specific application or case-by-case approval was required).

In response to the Anti-Apartheid Act of 1986, the NRC amended its regulations on December 31, 1986 by modifying the general import license to preclude its use with respect to the import of any uranium of South African origin.

As a result, South African-origin uranium in any form cannot be imported into the U.S. unless a specific NRC import license is first obtained.

The Commission's revised regulations in themselves do not prohibit the imoort of South African uranium.

Applications for specific import licenses will be reviewed by the Commission on a case-by-case basis to determine whether the license should be issued or denied.

With regard to the procedures for identifying South African-origin uranium, NRC nuclear material control and accountability orocedures require that any licensee who receives uranium in any form assign a country control number to that material which will identify the country of origin.

This requirement, of course, can only be accurately fulfilled if the foreign supplier of the material correctly designates the country of origin to the U.S.

importer.

Insofar as we are aware, imports of South African naterial have been properly identified and reported in accordance with both 4RC and the Deoartment of Energy material control requirements.

QUESTION 2.

Under the regulations adopted by the Commission, is the importation into the tinited States of uranium ore or uranium oxide that is brought into the United States for processing and then subsequently reexported for use in some other country prohibited?

Has the Commission undertaken a legal analysis of this issue?

If so, please provide copies of all such analyses.

ANSWER:

As noted in the answer to question 1, NRC's regulations do not prohibit the import of any South African origin uranium.

With respect to the Commission's ultimate decision on the specific question of the import of ore and oxide #or subsequent reexport the General Counsel has prepared a legal analysis (enclosed as attachment 1) which concludes that the Anti-Apartheid Act bans the import of all South African-origin uranium ore and oxide, reaardless of its end-use.

The Commission is expected to reach a decision on this matter within the next few waeks.

1

P OVESTION 3.

Do your current regulations recuire an importer to identify the specific country of orioin of any shipment of uranium, regardless of the form, into the United States?

ANSWER:

Yes.

NRC's material accountability requirements (NUREG/BR-0006 Rev. 2) require that a country control number indicating the country of origin of the source material be assioned to material when it is imported into the U.S.,

transferred within the U.S.,

and exported from the U.S.

NRC's import licensing regulations at 10 CFR 110.31(c) also require that an importer identify the country of origin of any material which is imported into the U.S.

l i

P QUESTION 4.

Do you have any requests pending to import South African uranium?

If so, please identify the applicant, the amount and type of uranium to be imported, and whether the uranium is to be used in the United States or elsewhere.

What is the status of the Commission consideration of these requests?

ANSWER:

The Commission has received a total of eight new applications from three companies for the import of South African origin uranium.

One application was subsequently withdrawn.

Under our standard review procedures, these applications were forwarded to the Executive Branch and, on March 17, 1987, the Executive Branch provided its favorable comments concerning the applications to the NRC.

The Commission will consider these comments, along with all other relevant information, in its review of these applications.

In addition, these applications are the subiect of a petition for leave to intervene in opposition to the issuance of the licenses and a request for hearing, filed by seven members of the Congress and by five private organizations.

The NRC currently has this petition under consideration and final Commission review of these cases cannot take place before this matter is decided. Tha details of the apolications are as follows:

Braunkohle Transport, USA:

1.

500,000 kgs natural uranium (U) as l',0 for processing g

(conversion and enrichment) and re-expert.

2.

1,000,000 kgs natural U as UF for domestic and foreien 6

use 3.

500,000 kgs low enriched uranium (LEU) as uranium hexafluoride (UF ) f r domestic and foreign use 6

4.

40,000 kgs LEU as UF for fuel fabrication and re-exoort to WestGermany(subseqbentlywithdrawn).

Exxon Nuclear Company:

1.

167,732 kgs LEU as UF for fuel fabrication and re-export to 6

West Germany Edlow International:

1.

500,000 kgs natural U as U 0 f r nr cessing (conversion and 3 8 enrichment) and re-exoort to EURATOM, Japan, Taiwan or Korea.

F

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QUESTION 4.

(Continued)

-P-2.

500,000 kgs natural U as UF for enrichment and use in the U.S. andre-exporttoEURATbM, Japan, Taiwan,orKorea.

3.

500,000 kgs LEU as UF for fuel fabrication and use in the 6

U.S. and re-export to EURATOM, Japan, Taiwan or Korea.

l

F P

QUESTION 5.

Please identify all existing licenses authorizing the importation of South African uranium.

Under what circumstances, if any may such licensees import South African uranium into the United States?

Please identify an.v such shipments pursuant to existing licenses, including the licensee and the amount and type of uranium, that arrived in the United States on or after December 31, 1986.

ANSWER:

Eleven unexpired licenses for the import of source and special nuclear materials were issued by NRC prior to January 1985 under which South African origin uranium could enter the U.S.

(enclosed as attachment 2).

These licenses have expiration dates ranging from October 1987 to December 1992.

The December 31, 1986 revision to the NRC general license requiring specific licensing for the import of South African origin uranium, did not directly affect these outstanding licenses.

The NRC has taken no formal action to withdraw or amend the existing licenses with respect to the import of South African origin uranium.

The Commission expects to make a decision on this matter in the near future.

In the interim, the NRC staff has written to each licensee holding an outstanding license and requested that no import of South African origin uranium be undertaken against the licenses pending comoletion of the Commission's review.

The licensees appear to be cooperating with this request.

The NRC has received a formal petition from certain members of Congress and other individuals to revoke the existing licenses insofar as they would permit the import of South African material.

The Commission is addressing this petition in the context of its ongoing review of the existing licenses.

Only one shipment of material under the existing import licenses has taken place since December 31, 1986.

This was a shipment under Braunkohle's license of 4,816 kilograms of 3.6% enriched uranium in the form of uranium hexafluoride.

This shipment left port in Europe on December 24, 1986 and was in international waters on December 31, arriving at Portsmouth, Virginia on or about January 1, 1987. It entered the U.S. under a specific import license held by Braunkhole Transport, USA and was transported to a Westinghouse Electric facility at Columbia, South Carolina for the fabrication of fuel elements for re-export to a Spanish utility.

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QUESTION 6.

Please provide a month-by-month breakdown for 1985 and '986 of all South African uranium imported into the United States, the amount and type (i.e.,

uraniun ore, uranium oxide, uranium hexaTTuoride, or enriched uranium) of each individual shionent, and whether the uranium was for use in the United States or was subsequently reexported.

With respect to uranium that originated in South Africa, but was shipped to the United States through some other country, please identify all such shipments and the country through which such uranium was shipped, as well.

ANSWER:

During 1985 and 1986 a total of.9,589,204 kilograms of South African origin uranium was imported into the U.S. Of this amount (1) 714,087 kilograms were in the form of natural UF ; (2) 151,326 kilogramswereintheformofenrichedUF;f3)8,723,309 kilograms were in the form of natural ore / oxide;knd (4) 521 kilograms were in the form of enriched oxide.

A detailed monthly breakdown of these shipments is attached.

As stated in the answer to Question Number 1, uranium in the U.S.

is tracked according to the country of oriain but, because the differences in time from receipt of feed material to the conversion, enrichment, fabrication and re-export of finished product can be on the order of months or years, our records do not indicate what proportion of the 1985-86 imports have subsequently been re-exported.

We note, however, that during 1986, over 70% of the South African-origin uranium processed at the Department of Energy's enrichment plants was later exported to foreign users, primarily in Japan and Taiwan.

During 1985 and 1986 a total of 1,188,765 kilograms of South African uranium were imported into the U.S.

through other countries.

A detailed listing of imports from each country for each year is enclosed at attachment 3.

We do not have a breakdown of monthly import figures for such imports.

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F p-e ATTACHMENT 1

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