[Federal Register Volume 73, Number 128 (Wednesday, July 2, 2008)]
[Notices]
[Pages 37993-37997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14973]


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NUCLEAR REGULATORY COMMISSION

[EA-08-161]


In the Matter of Licensee Identified in Attachment 1 and All 
Other Persons Who Obtain Safeguards Information Described Herein; Order 
Imposing Requirements for the Protection of Certain Safeguards 
Information (Effective Immediately)

I

    The Licensee, identified in Attachment 1 \1\ to this Order, holds a 
license issued in accordance with the Atomic Energy Act of 1954, as 
amended, (AEA) by the U.S. Nuclear Regulatory Commission (NRC or 
Commission), authorizing it to possess, use, and transfer items 
containing radioactive material quantities of concern. The NRC intends 
to issue security Orders to this licensee in the near future. The Order 
will require compliance with specific Additional Security Measures to 
enhance the security for certain radioactive material quantities of 
concern. The Commission has determined that these documents will 
contain Safeguards Information, will not be released to the public, and 
must be protected from unauthorized disclosure. Therefore, the 
Commission is imposing the requirements, as set forth in Attachments 2 
and 3 to this Order and in Order EA-08-162, so that the Licensee can 
receive these documents. This Order also imposes requirements for the 
protection of Safeguards Information in the hands of any person,\2\ 
whether or not a licensee of the Commission, who produces, receives, or 
acquires Safeguards Information.
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    \1\ Attachment 1 contains sensitive information and will not be 
released to the public.
    \2\ Person means (1) any individual, corporation, partnership, 
firm, association, trust, estate, public or private institution, 
group, government agency other than the Commission or the Department 
of Energy, except that the Department of Energy shall be considered 
a person with respect to those facilities of the Department of 
Energy specified in section 202 of the Energy Reorganization Act of 
1974 (88 Stat. 1244), any State or any political subdivision of, or 
any political entity within a State, any foreign government or 
nation or any political subdivision of any such government or 
nation, or other entity; and (2) any legal successor, 
representative, agent, or agency of the foregoing.
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II

    The Commission has broad statutory authority to protect and 
prohibit the unauthorized disclosure of Safeguards Information. Section 
147 of the AEA grants the Commission explicit authority to ``* * * 
issue such orders, as necessary to prohibit the unauthorized disclosure 
of safeguards

[[Page 37994]]

information * * *'' This authority extends to information concerning 
the security measures for the physical protection of special nuclear 
material, source material, and byproduct material. Licensees and all 
persons who produce, receive, or acquire Safeguards Information must 
ensure proper handling and protection of Safeguards Information to 
avoid unauthorized disclosure in accordance with the specific 
requirements for the protection of Safeguards Information contained in 
Attachments 2 and 3 to this Order. The Commission hereby provides 
notice that it intends to treat violations of the requirements 
contained in Attachments 2 and 3 to this Order applicable to the 
handling and unauthorized disclosure of Safeguards Information as 
serious breaches of adequate protection of the public health and safety 
and the common defense and security of the United States.
    Access to Safeguards Information is limited to those persons who 
have established the need-to-know the information, are considered to be 
trustworthy and reliable, and meet the requirements of Order EA-08-162. 
A need-to-know means a determination by a person having responsibility 
for protecting Safeguards Information that a proposed recipient's 
access to Safeguards Information is necessary in the performance of 
official, contractual, or licensee duties of employment.
    The Licensee and all other persons who obtain Safeguards 
Information must ensure that they develop, maintain and implement 
strict policies and procedures for the proper handling of Safeguards 
Information to prevent unauthorized disclosure, in accordance with the 
requirements in Attachments 2 and 3 to this Order. The Licensee must 
ensure that all contractors whose employees may have access to 
Safeguards Information either adhere to the licensee's policies and 
procedures on Safeguards Information or develop, or maintain and 
implement their own acceptable policies and procedures. The Licensee 
remains responsible for the conduct of their contractors. The policies 
and procedures necessary to ensure compliance with applicable 
requirements contained in Attachments 2 and 3 to this Order must 
address, at a minimum, the following: the general performance 
requirement that each person who produces, receives, or acquires 
Safeguards Information shall ensure that Safeguards Information is 
protected against unauthorized disclosure; protection of Safeguards 
Information at fixed sites, in use and in storage, and while in 
transit; correspondence containing Safeguards Information; access to 
Safeguards Information; preparation, marking, reproduction and 
destruction of documents; external transmission of documents; use of 
automatic data processing systems; removal of the Safeguards 
Information category; the need-to-know the information; and background 
checks to determine access to the information.
    In order to provide assurance that the Licensee is implementing 
prudent measures to achieve a consistent level of protection to 
prohibit the unauthorized disclosure of Safeguards Information, the 
Licensee shall implement the requirements identified in Attachments 2 
and 3 to this Order. In addition, pursuant to 10 CFR Part 2.202, I find 
that in light of the common defense and security matters identified 
above, which warrant the issuance of this Order, the public health, 
safety and interest require that this Order be effective immediately.

III

    Accordingly, pursuant to Sections 81, 147, 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, 10 CFR Part 30, 10 CFR Part 
32, 10 CFR Part 35, 10 CFR Part 70, and 10 CFR Part 73, it is hereby 
ordered, effective immediately, that all licensees identified in 
Attachment 1 to this order and all other persons who produce, receive, 
or acquire the additional security measures identified above (whether 
draft or final) or any related safeguards information shall comply with 
the requirements of Attachments 2 and 3 to this order.
    The Director, Office of Federal and State Materials and 
Environmental Management Programs, may, in writing, relax or rescind 
any of the above conditions upon demonstration of good cause by the 
licensee.

IV

    In accordance with 10 CFR 2.202, the Licensee must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order within twenty (20) days of the date of this Order. In addition, 
the Licensee and any other person adversely affected by this Order may 
request a hearing of this Order within twenty (20) days of the date of 
the Order. 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 Federal and 
State Materials and Environmental Management Programs, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, and include a statement of 
good cause for the extension.
    The answer may consent to this Order. If the answer includes a 
request for a hearing, it shall, under oath or affirmation, 
specifically set forth the matters of fact and law on which the 
Licensee relies and the reasons as to why the Order should not have 
been issued. If a person other than the Licensee 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 2.309(d).
    All documents filed in NRC adjudicatory proceedings, including a 
request for hearing, a petition for leave to intervene, any motion or 
other document filed in the proceeding prior to the submission of a 
request for hearing or petition to intervene, and documents filed by 
interested governmental entities participating under 10 CFR 2.315(c), 
must be filed in accordance with the NRC E-Filing rule, which the NRC 
promulgated in August 2007, 72 FR 49139 (Aug. 28, 2007) and codified in 
pertinent part at 10 CFR Part 2, Subpart B. The E-Filing process 
requires participants to submit and serve all adjudicatory documents 
over the internet, or in some cases to mail copies on electronic 
storage media. Participants may not submit paper copies of their 
filings unless they seek a waiver in accordance with the procedures 
described below.
    To comply with the procedural requirements associated with E-
Filing, at least ten (10) days prior to the filing deadline the 
requestor must contact the Office of the Secretary by e-mail at 
[email protected], or by calling (301) 415-1677, to request (1) a 
digital ID certificate, which allows the participant (or its counsel or 
representative) to digitally sign documents and access the E-Submittal 
server for any NRC proceeding in which it is participating; and/or (2) 
creation of an electronic docket for the proceeding (even in instances 
when the requestor (or its counsel or representative) already holds an 
NRC-issued digital ID certificate). Each requestor will need to 
download the Workplace Forms ViewerTM to access the 
Electronic Information Exchange (EIE), a component of the E-Filing 
system. The Workplace Forms ViewerTM is free and is 
available at http://www.nrc.gov/site-help/e-submittals/install-viewer.html. Information about applying for a digital ID certificate 
also is available on NRC's public Web site at http://www.nrc.gov/site-help/e-submittals/apply-certificates.html.

[[Page 37995]]

    Once a requestor has obtained a digital ID certificate, had a 
docket created, and downloaded the EIE viewer, it can then submit a 
request for a hearing through EIE. Submissions should be in Portable 
Document Format (PDF) in accordance with NRC guidance available on the 
NRC public Web site at http://www.nrc.gov/site-help/e-submittals.html. 
A filing is considered complete at the time the filer submits its 
document through EIE. To be timely, electronic filings must be 
submitted to the EIE system no later than 11:59 p.m. Eastern Time on 
the due date. Upon receipt of a transmission, the E-Filing system time-
stamps the document and sends the submitter an e-mail notice confirming 
receipt of the document. The EIE system also distributes an e-mail 
notice that provides access to the document to the NRC Office of the 
General Counsel and any others who have advised the Office of the 
Secretary that they wish to participate in the proceeding, so that the 
filer need not serve the document on those participants separately. 
Therefore, any others who wish to participate in the proceeding (or 
their counsel or representative) must apply for and receive a digital 
ID certificate before a hearing request is filed so that they may 
obtain access to the document via the E-Filing system.
    A person filing electronically may seek assistance through the 
``Contact Us'' link located on the NRC Web site at http://www.nrc.gov/site-help/e-submittals.html or by calling the NRC technical help line, 
which is available between 8:30 a.m. and 4:15 p.m., Eastern Time, 
Monday through Friday. The help line number is (800) 397-4209 or 
locally, (301) 415-4737.
    Participants who believe that they have good cause for not 
submitting documents electronically must file a motion, in accordance 
with 10 CFR 2.302(g), with their initial paper filing requesting 
authorization to continue to submit documents in paper format. Such 
filings must be submitted by (1) first class mail addressed to the 
Office of the Secretary of the Commission, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, Attention: Rulemaking and 
Adjudications Staff; or (2) courier, express mail, or expedited 
delivery service to the Office of the Secretary, Sixteenth Floor, One 
White Flint North, 11555 Rockville, Pike, Rockville Maryland 20852, 
Attention: Rulemaking and Adjudications Staff. Participants filing a 
document in this manner are responsible for serving the document on all 
other participants. Filing is considered complete by first-class mail 
as of the time of deposit in the mail, or by courier, express mail, or 
expedited delivery service upon depositing the document with the 
provider of the service.
    Documents submitted in adjudicatory proceedings will appear in 
NRC's electronic hearing docket which is available to the public at 
http://ehd.nrc.gov/EHD_Proceeding/home.asp, unless excluded pursuant 
to an order of the Commission, an Atomic Safety and Licensing Board, or 
a Presiding Officer. Participants are requested not to include personal 
privacy information, such as social security numbers, home addresses, 
or home phone numbers in their filings. With respect to copyrighted 
works, except for limited excerpts that serve the purpose of the 
adjudicatory filings and would constitute a Fair Use application, 
Participants are requested not to include copyrighted materials in 
their works.
    If a hearing is requested by the Licensee or 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.
    Pursuant to 10 CFR 2.202(c)(2)(i), the Licensee may, in addition to 
requesting a hearing, at the time the answer is filed or sooner, move 
the presiding officer to set aside the immediate effectiveness of the 
Order on the ground that the Order, including the need for immediate 
effectiveness, is not based on adequate evidence but on mere suspicion, 
unfounded allegations, or error.
    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 III 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 III 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.

    Dated this 18th day of June 2008.
    For the Nuclear Regulatory Commission
George Pangburn,
Acting Director, Office of Federal and State Materials and 
Environmental Management Programs.

Attachment 1: List of Applicable Materials Licensees Redacted.

Attachment 2: Modified Handling Requirements for the Protection of 
Certain Safeguards Information (SGI-M)

Modified Handling Requirements for the Protection of Certain Safeguards 
Information (SGI-M) General Requirement

    Information and material that the U.S. Nuclear Regulatory 
Commission (NRC) determines are safeguards information must be 
protected from unauthorized disclosure. In order to distinguish 
information needing modified protection requirements from the 
safeguards information for reactors and fuel cycle facilities that 
require a higher level of protection, the term ``Safeguards 
Information-Modified Handling'' (SGI-M) is being used as the 
distinguishing marking for certain materials licensees. Each person 
who produces, receives, or acquires SGI-M shall ensure that it is 
protected against unauthorized disclosure. To meet this requirement, 
licensees and persons shall establish and maintain an information 
protection system that includes the measures specified below. 
Information protection procedures employed by state and local police 
forces are deemed to meet these requirements.

Persons Subject to These Requirements

    Any person, whether or not a licensee of the NRC, who produces, 
receives, or acquires SGI-M is subject to the requirements (and 
sanctions) of this document. Firms and their employees that supply 
services or equipment to materials licensees would fall under this 
requirement if they possess facility SGI-M. A licensee must inform 
contractors and suppliers of the existence of these requirements and 
the need for proper protection. (See more under Conditions for 
Access.)
    State or local police units who have access to SGI-M are also 
subject to these requirements. However, these organizations are 
deemed to have adequate information protection systems. The 
conditions for transfer of information to a third party, i.e., need-
to-know, would still apply to the police organization as would 
sanctions for unlawful disclosure. Again, it would be prudent for 
licensees who have arrangements with local police to advise them of 
the existence of these requirements.

Criminal and Civil Sanctions

    The Atomic Energy Act of 1954, as amended, explicitly provides 
that any person, ``whether or not a licensee of the Commission, who 
violates any regulations adopted under this section shall be subject 
to the civil monetary penalties of section 234 of this Act.'' 
Furthermore, willful violation of any regulation or order governing 
safeguards information is a felony subject to criminal penalties in 
the form of fines or imprisonment, or both. See sections 147b. and 
223 of the Act.

[[Page 37996]]

Conditions for Access

    Access to SGI-M beyond the initial recipients of the order will 
be governed by the background check requirements imposed by the 
order. Access to SGI-M by licensee employees, agents, or contractors 
must include both an appropriate need-to-know determination by the 
licensee, as well as a determination concerning the trustworthiness 
of individuals having access to the information. Employees of an 
organization affiliated with the licensee's company, e.g., a parent 
company, may be considered as employees of the licensee for access 
purposes.

Need-to-Know

    Need-to-know is defined as a determination by a person having 
responsibility for protecting SGI-M that a proposed recipient's 
access to SGI-M is necessary in the performance of official, 
contractual, or licensee duties of employment. The recipient should 
be made aware that the information is SGI-M and those having access 
to it are subject to these requirements as well as criminal and 
civil sanctions for mishandling the information.

Occupational Groups

    Dissemination of SGI-M is limited to individuals who have an 
established need-to-know and who are members of certain occupational 
groups. These occupational groups are:
    A. An employee, agent, or contractor of an applicant, a 
licensee, the Commission, or the United States Government;
    B. A member of a duly authorized committee of the Congress;
    C. The Governor of a State or his designated representative;
    D. A representative of the International Atomic Energy Agency 
(IAEA) engaged in activities associated with the U.S./IAEA 
Safeguards Agreement who has been certified by the NRC;
    E. A member of a state or local law enforcement authority that 
is responsible for responding to requests for assistance during 
safeguards emergencies; or
    F. A person to whom disclosure is ordered pursuant to Section 
2.744(e) of Part 2 of part 10 of the Code of Federal Regulations.
    G. State Radiation Control Program Directors (and State Homeland 
Security Directors) or their designees.
    In a generic sense, the individuals described above in (A) 
through (G) are considered to be trustworthy by virtue of their 
employment status. For non-governmental individuals in group (A) 
above, a determination of reliability and trustworthiness is 
required. Discretion must be exercised in granting access to these 
individuals. If there is any indication that the recipient would be 
unwilling or unable to provide proper protection for the SGI-M, they 
are not authorized to receive SGI-M.

Information Considered for Safeguards Information Designation

    Information deemed SGI-M is information the disclosure of which 
could reasonably be expected to have a significant adverse effect on 
the health and safety of the public or the common defense and 
security by significantly increasing the likelihood of theft, 
diversion, or sabotage of materials or facilities subject to NRC 
jurisdiction.
    SGI-M identifies safeguards information which is subject to 
these requirements. These requirements are necessary in order to 
protect quantities of nuclear material significant to the health and 
safety of the public or common defense and security.
    The overall measure for consideration of SGI-M is the usefulness 
of the information (security or otherwise) to an adversary in 
planning or attempting a malevolent act. The specificity of the 
information increases the likelihood that it will be useful to an 
adversary.

Protection While in Use

    While in use, SGI-M shall be under the control of an authorized 
individual. This requirement is satisfied if the SGI-M is attended 
by an authorized individual even though the information is in fact 
not constantly being used. SGI-M, therefore, within alarm stations, 
continuously manned guard posts or ready rooms need not be locked in 
file drawers or storage containers.
    Under certain conditions the general control exercised over 
security zones or areas would be considered to meet this 
requirement. The primary consideration is limiting access to those 
who have a need-to-know. Some examples would be:

Alarm stations, guard posts and guard ready rooms;
Engineering or drafting areas if visitors are escorted and 
information is not clearly visible;
Plant maintenance areas if access is restricted and information is 
not clearly visible;
Administrative offices (e.g., central records or purchasing) if 
visitors are escorted and information is not clearly visible.

Protection While in Storage

    While unattended, SGI-M shall be stored in a locked file drawer 
or container. Knowledge of lock combinations or access to keys 
protecting SGI-M shall be limited to a minimum number of personnel 
for operating purposes who have a ``need-to-know'' and are otherwise 
authorized access to SGI-M in accordance with these requirements. 
Access to lock combinations or keys shall be strictly controlled so 
as to prevent disclosure to an unauthorized individual.

Transportation of Documents and Other Matter

    Documents containing SGI-M when transmitted outside an 
authorized place of use or storage shall be enclosed in two sealed 
envelopes or wrappers. The inner envelope or wrapper shall contain 
the name and address of the intended recipient, and be marked both 
sides, top and bottom with the words ``Safeguards Information--
Modified Handling.'' The outer envelope or wrapper must be addressed 
to the intended recipient, must contain the address of the sender, 
and must not bear any markings or indication that the document 
contains SGI-M.
    SGI-M may be transported by any commercial delivery company that 
provides nation-wide overnight service with computer tracking 
features, U.S. first class, registered, express, or certified mail, 
or by any individual authorized access pursuant to these 
requirements.
    Within a facility, SGI-M may be transmitted using a single 
opaque envelope. It may also be transmitted within a facility 
without single or double wrapping, provided adequate measures are 
taken to protect the material against unauthorized disclosure. 
Individuals transporting SGI-M should retain the documents in their 
personal possession at all times or ensure that the information is 
appropriately wrapped and also secured to preclude compromise by an 
unauthorized individual.

Preparation and Marking of Documents

    While the NRC is the sole authority for determining what 
specific information may be designated as ``SGI-M,'' originators of 
documents are responsible for determining whether those documents 
contain such information. Each document or other matter that 
contains SGI-M shall be marked ``Safeguards Information--Modified 
Handling'' in a conspicuous manner on the top and bottom of the 
first page to indicate the presence of protected information. The 
first page of the document must also contain (i) The name, title, 
and organization of the individual authorized to make a SGI-M 
determination, and who has determined that the document contains 
SGI-M, (ii) the date the document was originated or the 
determination made, (iii) an indication that the document contains 
SGI-M, and (iv) an indication that unauthorized disclosure would be 
subject to civil and criminal sanctions. Each additional page shall 
be marked in a conspicuous fashion at the top and bottom with 
letters denoting ``Safeguards Information Modified Handling.'' In 
additional to the ``Safeguards Information--Modified Handling'' 
markings at the top and bottom of each page, transmittal letters or 
memoranda which do not in themselves contain SGI-M shall be marked 
to indicate that attachments or enclosures contain SGI-M but that 
the transmittal does not (e.g., ``When separated from SGI-M 
enclosure(s), this document is decontrolled'').
    In addition to the information required on the face of the 
document, each item of correspondence that contains SGI-M shall, by 
marking or other means, clearly indicate which portions (e.g., 
paragraphs, pages, or appendices) contain SGI-M and which do not. 
Portion marking is not required for physical security and safeguards 
contingency plans.
    All documents or other matter containing SGI-M in use or storage 
shall be marked in accordance with these requirements. A specific 
exception is provided for documents in the possession of contractors 
and agents of licensees that were produced more than one year prior 
to the effective date of the order. Such documents need not be 
marked unless they are removed from file drawers or containers. The 
same exception applies to old documents stored away from the 
facility in central files or corporation headquarters.
    Since information protection procedures employed by state and 
local police forces are deemed to meet NRC requirements,

[[Page 37997]]

documents in the possession of these agencies need not be marked as 
set forth in this document.

Removal From SGI-M Category

    Documents containing SGI-M shall be removed from the SGI-M 
category (decontrolled) only after the NRC determines that the 
information no longer meets the criteria of SGI-M. Licensees have 
the authority to make determinations that specific documents which 
they created no longer contain SGI-M information and may be 
decontrolled. Consideration must be exercised to ensure that any 
document decontrolled shall not disclose SGI-M in some other form or 
be combined with other unprotected information to disclose SGI-M.
    The authority to determine that a document may be decontrolled 
may be exercised only by, or with the permission of, the individual 
(or office) who made the original determination. The document shall 
indicate the name and organization of the individual removing the 
document from the SGI-M category and the date of the removal. Other 
persons who have the document in their possession should be notified 
of the decontrolling of the document.

Reproduction of Matter Containing SGI-M

    SGI-M may be reproduced to the minimum extent necessary 
consistent with need without permission of the originator. Newer 
digital copiers which scan and retain images of documents represent 
a potential security concern. If the copier is retaining SGI-M 
information in memory, the copier cannot be connected to a network. 
It should also be placed in a location that is cleared and 
controlled for the authorized processing of SGI-M information. 
Different copiers have different capabilities, including some which 
come with features that allow the memory to be erased. Each copier 
would have to be examined from a physical security perspective.

Use of Automatic Data Processing (ADP) Systems

    SGI-M may be processed or produced on an ADP system provided 
that the system is assigned to the licensee's or contractor's 
facility and requires the use of an entry code/password for access 
to stored information. Licensees are encouraged to process this 
information in a computing environment that has adequate computer 
security controls in place to prevent unauthorized access to the 
information. An ADP system is defined here as a data processing 
system having the capability of long term storage of SGI-M. Word 
processors such as typewriters are not subject to the requirements 
as long as they do not transmit information offsite. (Note: if SGI-M 
is produced on a typewriter, the ribbon must be removed and stored 
in the same manner as other SGI-M information or media.) The basic 
objective of these restrictions is to prevent access and retrieval 
of stored SGI-M by unauthorized individuals, particularly from 
remote terminals. Specific files containing SGI-M will be password 
protected to preclude access by an unauthorized individual. The 
National Institute of Standards and Technology (NIST) maintains a 
listing of all validated encryption systems at http://csrc.nist.gov/cryptval/1401/1401val.htm. SGI-M files may be transmitted over a 
network if the file is encrypted. In such cases, the licensee will 
select a commercially available encryption system that NIST has 
validated as conforming to Federal Information Processing Standards 
(FIPS). SGI-M files shall be properly labeled as ``Safeguards 
Information--Modified Handling'' and saved to removable media and 
stored in a locked file drawer or cabinet.

Telecommunications

    SGI-M may not be transmitted by unprotected telecommunications 
circuits except under emergency or extraordinary conditions. For the 
purpose of this requirement, emergency or extraordinary conditions 
are defined as any circumstances that require immediate 
communications in order to report, summon assistance for, or respond 
to a security event (or an event that has potential security 
significance).
    This restriction applies to telephone, telegraph, teletype, 
facsimile circuits, and to radio. Routine telephone or radio 
transmission between site security personnel, or between the site 
and local police, should be limited to message formats or codes that 
do not disclose facility security features or response procedures. 
Similarly, call-ins during transport should not disclose information 
useful to a potential adversary. Infrequent or non-repetitive 
telephone conversations regarding a physical security plan or 
program are permitted provided that the discussion is general in 
nature.
    Individuals should use care when discussing SGI-M at meetings or 
in the presence of others to insure that the conversation is not 
overheard by persons not authorized access. Transcripts, tapes or 
minutes of meetings or hearings that contain SGI-M shall be marked 
and protected in accordance with these requirements.

Destruction

    Documents containing SGI-M should be destroyed when no longer 
needed. They may be destroyed by tearing into small pieces, burning, 
shredding or any other method that precludes reconstruction by means 
available to the public at large. Piece sizes one half inch or 
smaller composed of several pages or documents and thoroughly mixed 
would be considered completely destroyed.

Attachment 3: Trustworthiness and Reliability Requirements for 
Individuals Handling Safeguards Information

Trustworthiness and Reliability Requirements for Individuals Handling 
Safeguards Information

    In order to ensure the safe handling, use, and control of 
information designated as Safeguards Information, each licensee 
shall control and limit access to the information to only those 
individuals who have established the need-to-know the information, 
and are considered to be trustworthy and reliable. Licensees shall 
document the basis for concluding that there is reasonable assurance 
that individuals granted access to Safeguards Information are 
trustworthy and reliable, and do not constitute an unreasonable risk 
for malevolent use of the information.
    The Licensee shall comply with the requirements of this 
attachment:
    1. The trustworthiness and reliability of an individual shall be 
determined based on a background investigation:
    (a) The background investigation shall address at least the past 
three (3) years, and, at a minimum, include verification of 
employment, education, and personal references. The licensee shall 
also, to the extent possible, obtain independent information to 
corroborate that provided by the employee (i.e., seeking references 
not supplied by the individual).
    (b) If an individual's employment has been less than the 
required three (3) year period, educational references may be used 
in lieu of employment history.
    The licensee's background investigation requirements may be 
satisfied for an individual that has an active Federal security 
clearance.
    2. The licensee shall retain documentation regarding the 
trustworthiness and reliability of individual employees for three 
years after the individual's employment ends.
    In order for an individual to be granted access to Safeguards 
Information, the individual must be determined to be trustworthy and 
reliable, as describe in requirement 1 above, and meet the 
requirements of NRC Order EA-08-162.

[FR Doc. E8-14973 Filed 7-1-08; 8:45 am]
BILLING CODE 7590-01-P