[Federal Register Volume 68, Number 152 (Thursday, August 7, 2003)]
[Notices]
[Pages 47107-47108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20145]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 70-143, License No. SNM-124 EA-03-132]


In the Matter of Nuclear Fuel Services, Inc., Erwin, TN; 
Confirmatory Order Modifying License (Effective Immediately)

I

    Nuclear Fuel Services, Inc., (NFS) is the holder of Special Nuclear 
Material License No. SNM 124 issued by the U.S. Nuclear Regulatory (NRC 
or Commission) pursuant to 10 CFR part 70. NFS is authorized by their 
license to receive, possess, and transfer special nuclear material in 
accordance with the Atomic Energy Act of 1954, as amended, and 10 CFR 
part 70. The NFS license, originally issued on September 18, 1957, was 
renewed on July 2, 1999, and is due to expire on July 31, 2009.

II

    On September 11, 2001, terrorists simultaneously attacked targets 
in New York, NY, and Washington, DC, utilizing large commercial 
aircraft as weapons. In response to the attacks and intelligence 
information subsequently obtained, the Commission issued a number of 
Safeguards and Threat Advisories to its licensees in order to 
strengthen licensees' capabilities and readiness to respond to a 
potential attack on a nuclear facility. The Commission has also 
communicated with other Federal, State and local government agencies 
and industry representatives to discuss and evaluate the current threat 
environment in order to assess the adequacy of security measures at 
licensed facilities. In addition, the Commission has been conducting a 
comprehensive review of its safeguards and security programs and 
requirements.
    As a result of its consideration of current safeguards and security 
plan requirements, as well as a review of information provided by the 
intelligence community, the Commission has determined that certain 
compensatory measures are warranted as prudent, interim measures to 
address the current threat environment. Therefore, the Commission is 
imposing interim requirements, set forth in Attachment 1\1\ of this 
Order, which supplement existing regulatory requirements, to provide 
the Commission with reasonable assurance that the public health and 
safety and common defense and security continue to be adequately 
protected in the current threat environment. These requirements will 
remain in effect until the Commission determines otherwise.
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    \1\ Attachment 1 contains safeguards information and will not be 
released to the public.
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III

    In February 2003, NRC issued Orders to Category III fuel cycle 
licensees directing each licensee to implement interim compensatory 
measures (ICMs) to enhance physical security at its facilities. NFS did 
not receive an order at that time because an amendment authorizing 
operation of a new Category III complex was still pending. In a letter 
to NFS dated February 11, 2003, NRC provided a copy of the ICMs to NFS 
for its information and use in designing the new complex. NFS responded 
on March 25, 2003, indicating its intention to comply with the ICMs.
    The Commission recognizes that some of the requirements set forth 
in Attachment 1\2\ to this Order have already been initiated by NFS in 
response to previously-issued advisories, or on its own \3\ and that 
some measures have been tailored to specifically accommodate the 
specific circumstances and characteristics existing at NFS's facility 
to achieve the

[[Page 47108]]

intended objectives and avoid any unforeseen effect on safe operation.
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    \2\ To the extent that specific measures identified in 
Attachment 1 to this Order require actions pertaining to NFS's 
possession and use of chemicals, such actions are being directed on 
the basis of the potential impact of such chemicals on radioactive 
materials and activities subject to NRC regulation.
    \3\ See letter from B. Marie Moore, Vice President, NFS, to Mary 
T. Adams, NRC, dated July 3, 2003.
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    By letter dated July 3, 2003, NFS consented to this Order with the 
commitments as described in Section IV below. NFS further agreed in its 
July 3, 2003, letter that this Order is to be effective upon issuance 
and that it has waived its right to a hearing. Implementation of this 
commitment provides enhanced assurance that sufficient resources will 
be applied to the physical protection program.
    I find that NFS' commitment as set forth in its letters of March 25 
and July 3, 2003, is acceptable and necessary, and conclude that with 
this commitment, the public health and safety, and common defense and 
security, are reasonably assured. In view of the foregoing, I have 
determined that the public health and safety, and common defense and 
security, require that NFS' commitment be confirmed by this Order. 
Based on the above and NFS' consent, this Order is immediately 
effective upon issuance.

IV

    Accordingly, pursuant to Sections 53, 63, 81, 161b, 161i, 161o, 182 
and 186 of the Atomic Energy Act of 1954, as amended, and the 
Commission's regulations in 10 CFR 2.202 and 10 CFR part 70, it is 
hereby ordered, effective immediately, that material license SNM-124 is 
modified as follows:
    A. NFS shall, notwithstanding the provisions of any Commission 
regulation or license to the contrary, comply with the requirements 
described in Attachment 1 to this Order. NFS shall immediately start 
implementation of the requirements in Attachment 1 to the Order and 
shall complete implementation before the introduction of Category III 
quantities of special nuclear material into the Blended Low-Enriched 
Uranium Complex.
    B. NFS shall report to the Commission when it has achieved full 
compliance with the requirements described in Attachment 1.
    C. Notwithstanding any provision of the Commission's regulations to 
the contrary, all measures implemented or actions taken in response to 
this Order shall be maintained until the Commission determines 
otherwise.
    NFS's response to Condition B above shall be submitted in 
accordance with 10 CFR 70.5. In addition, NFS's submittals that contain 
safeguards information shall be properly marked and handled in 
accordance with 10 CFR 73.21.
    The Director, Office of Nuclear Material Safety and Safeguards, 
may, in writing, relax or rescind any of the above conditions upon 
demonstration by NFS of good cause.

V

    Any person adversely affected by this Confirmatory Order, other 
than the Licensee, may request a hearing within twenty (20) days of its 
issuance. Where good cause is shown, consideration will be given to 
extending the time to request a hearing. A request for extension of 
time must be made in writing to the Director, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555, and include a statement of good cause for the 
extension. Any request for a hearing shall be submitted to the 
Secretary, Office of the Secretary of the Commission, U.S. Nuclear 
Regulatory Commission, ATTN: Rulemakings and Adjudications Staff, 
Washington, DC 20555. Copies also shall be sent to the Director, Office 
of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555, to the Assistant General Counsel for 
Materials Litigation and Enforcement at the same address, to the 
Regional Administrator, NRC Region II, Sam Nunn Atlanta Federal Center, 
Suite 23 T85, 61 Forsyth Street, SW Atlanta, GA 30303-3415, and to NFS. 
Because of possible disruptions in delivery of mail to United States 
Government offices, it is requested that answers and requests for 
hearing be transmitted to the Secretary of the Commission either by 
means of facsimile transmission to 301-415-1101 or by e-mail to 
[email protected] and also to the Office of the General Counsel 
either by means of facsimile transmission to 301-415-3725 or by e-mail 
to [email protected]. If a person requests a hearing, that person 
shall set forth with particularity the manner in which his interest is 
adversely affected by this Order and shall address the criteria set 
forth in 10 CFR 2.714(d).
    If a hearing is requested by a person whose interest is adversely 
affected, the Commission will issue an Order designating the time and 
place of any hearing. If a hearing is held, the issue to be considered 
at such hearing shall be whether this Order should be sustained.
    In the absence of any request for hearing, or written approval of 
an extension of time in which to request a hearing, the provisions 
specified in Section IV above shall be final twenty (20) days from the 
date of this Order without further order or proceedings. If an 
extension of time for requesting a hearing has been approved, the 
provisions specified in Section IV shall be final when the extension 
expires if a hearing request has not been received. An answer or a 
request for hearing shall not stay the immediate effectiveness of this 
order.

    For the Nuclear Regulatory Commission.

    Dated this 8th day of July, 2003.
Martin J. Virgilio,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 03-20145 Filed 8-6-03; 8:45 am]
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