[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Proposed Rules]
[Pages 40784-40786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19258]


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NUCLEAR REGULATORY COMMISSION

10 CFR Part 40

[Docket No. PRM-40-26]


Chromalloy Tallahassee, a Division of Chromalloy Gas Turbine 
Corporation; Denial of Petition for Rulemaking

AGENCY: Nuclear Regulatory Commission.

ACTION: Denial of petition for rulemaking.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is denying a petition 
for rulemaking (PRM-40-26) submitted by Chromalloy Tallahassee, a 
division of Chromalloy Gas Turbine Corporation. The petitioner 
requested that the NRC amend its regulations regarding the exemption 
from licensing of source material found in 10 CFR 40.13(c)(8), so that 
the exemption would include finished parts containing nickel-thoria

[[Page 40785]]

alloy from both aircraft engines and battle tank engines. However, 
after performing a regulatory analysis, no benefits of granting this 
petition could be identified. Also, it has not been persuasively shown 
that denying the petition would have a negative impact on Chromalloy 
since, as a Florida general licensee, Chromalloy currently could repair 
battle tank engines containing nickel-thoria alloy parts provided two 
possession limits are observed. Further, Chromalloy now indicates it 
has no definite plans to begin such repairs in the foreseeable future. 
But, to grant this petition the NRC would incur the cost of conducting 
a rulemaking. Moreover, before this action could have an effect on 
Chromalloy, the cost of an additional rulemaking to change the Florida 
Administrative Code would need to be incurred by the State of Florida. 
Thus, when viewed in terms of regulatory effectiveness and efficiency, 
the NRC can not justify the expenditure of resources to grant this 
petition.

ADDRESSES: Copies of the petition for rulemaking and the NRC's letter 
to the petitioner are available for public inspection or copying in the 
Nuclear Regulatory Commission's Public Document Room, 2120 L Street NW. 
(Lower Level), Washington DC. No public comments on this petition for 
rulemaking were received.

FOR FURTHER INFORMATION CONTACT: Mr. John L. Telford, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001, telephone (301) 415-6229, e-mail 
[email protected].

SUPPLEMENTARY INFORMATION:

The Petition

    The petition was submitted by Chromalloy Tallahassee (Chromalloy), 
a Federal Aviation Administration approved Overhaul and Repair facility 
located in Florida, a NRC Agreement State.1 Chromalloy 
overhauls and repairs jet aircraft engine combustors (e.g., for the 
JT9D jet engine). These combustors are made of nickel-thoria. This use 
of thorium source material falls under the exemption from licensing 
found in 10 CFR 40.13(c)(8), and in the Florida Administrative Code in 
Paragraph 64E-5.202(3)(i).
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    \1\ An Agreement State is one which has entered into an 
Agreement with NRC to assume regulatory authority over byproduct, 
source, and small quantities of special nuclear material.
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    Chromalloy stated that it was interested in overhauling and 
repairing the engine of the M1A1 ABRAMS Main Battle Tank. This tank's 
engine is the AGT 1500 gas turbine engine. The combustor of the AGT 
1500 contains 15 splash rings and 15 fuel nozzles made of nickel-thoria 
alloy. The thorium content of this nickel-thoria alloy is less than 2% 
by weight. Moreover, the thorium is dispersed in the nickel-thoria 
alloy in the form of finely divided thoria (i.e., thorium dioxide). 
Chromalloy stated that these splash rings and fuel nozzles meet all the 
technical requirements of the current licensing exemption, except that 
the exemption is limited to finished aircraft engine parts. Chromalloy 
requested that the NRC establish an exemption from licensing to include 
the AGT 1500 tank gas turbine engine.
    In support of its petition, Chromalloy referenced a petition for 
rulemaking submitted to the Commission by E. I. du Pont de Nemours & 
Company (PRM-40-6) dated February 13, 1963. That petition requested 
that the Commission amend its regulations to establish an exemption 
from licensing for persons receiving, possessing, using, transferring, 
or importing any finished products containing nickel-thorium alloys 
with up to 4 percent thorium by weight. Chromalloy pointed out that the 
Commission's response had been:

the Commission has found that the possession and use in the United 
States of thorium contained in thorium metal alloys in which the 
thorium does not exceed 4 percent by weight is not of significance 
to the common defense and security, and that such activities can be 
conducted without unreasonable hazard to life or property.

    The proposed exemption was for ``any finished product or part;'' 
nowhere in PRM-40-6 do the words ``aircraft engine parts'' appear.
    Chromalloy stated that the final exemption was not published until 
November 18, 1967 (32 FR 15872) and that the expression ``jet aircraft 
engines'' is mentioned for the first time in that notice.
    After consulting with the NRC staff, Chromalloy believes that the 
material used for the experimental tests for the final exemption must 
have been from jet aircraft engines. At that time, the only use of 
nickel-thoria components was in aircraft engines. Chromalloy stated 
that this is possibly the reason the exemption specifies only finished 
aircraft engine parts. The production of the M1A1 Abrams Main Battle 
Tank was begun in 1985. This tank's engine, the AGT 1500, contains the 
same nickel-thoria alloy as is used in the JT9D jet aircraft engine. 
Therefore, Chromalloy stated that the alloy material in the AGT 1500 
gas turbine engine would produce the same results, if put to the same 
experimental tests the Commission conducted in 1963-1967.
    Chromalloy observed that in a Federal Register notice published by 
the Atomic Energy Commission on November 18, 1967 (32 FR 15872), the 
Commission considered that jet aircraft engine parts are not intended 
for public use.

    The Commission considers that finished aircraft engine parts 
containing nickel-thoria alloy are not products intended for use by 
the general public within the purview of Sec. 150.15(a)(6) of 10 CFR 
Part 150, * * *

    Finally, Chromalloy asserted that if the Commission does not view 
the presence of nickel-thoria in aircraft engine parts to be unsafe to 
the public, then the presence of nickel-thoria in tank engine parts 
should be viewed in the same light. Moreover, the public's exposure to 
tank engine parts is far less than the public's exposure to jet 
aircraft engine parts. Therefore, Chromalloy stated that the exemption 
in Sec. 40.13(c)(8) should be applicable to both the JT9D aircraft gas 
turbine engine and the AGT 1500 tank gas turbine engine.

Public Comments on the Petition

    The Notice of Receipt of the Petition was published in the Federal 
Register on December 10, 1997 (62 FR 65039). The comment period closed 
on February 23, 1998. No comments were received.

Reasons for Denial

    In order to determine whether this petition should be granted or 
denied, the NRC performed a regulatory analysis. The details of the 
analysis are provided below.

Benefit

    The NRC was unable to identify any benefits of granting this 
petition. Granting the petition would not improve the level of 
protection of public health and safety. If the petition were granted, 
radiation exposure of workers would be expected to either remain the 
same or increase modestly. Moreover, granting the petition would 
neither address a generic issue nor improve regulatory effectiveness 
and efficiency for either the NRC or the State of Florida. The NRC has 
a mechanism in Sec. 40.14 to address a non-generic issue by providing a 
specific exemption, upon review of a request to possess additional 
source material. If Chromalloy desired to make such a request, the same 
mechanism exists in the Florida Administrative Code in Subsection 64E-
5.102(1). In addition, granting the petition would not provide any 
practical benefits to Chromalloy since, it currently may overhaul and 
repair the AGT 1500 tank gas turbine engine as a general licensee under 
the Florida Administrative Code Subsection 64E-

[[Page 40786]]

5.205(1), provided two possession limits are observed. Chromalloy may 
use and transfer up to 15 pounds of source material at any given time, 
and may receive up to 150 pounds of source material in any one calendar 
year. Since the 15 splash rings and 15 fuel nozzles in the AGT 1500 
tank engine are 2 percent thorium by weight, Chromalloy could possess 
up to 750 pounds of such nickel-thoria alloy parts at any given time, 
and up to 7,500 pounds of such parts in any calendar year.

Impact

    Denying the petition would have no negative impact on Chromalloy. 
As a Florida general licensee, Chromalloy could repair AGT 1500 tank 
gas turbine engines. However, contrary to its stated desires in the 
petition, Chromalloy now indicates it has no definite plans to begin 
such repairs in the foreseeable future. But, to grant this petition the 
NRC would incur the cost of conducting a rulemaking. Moreover, before 
this action could have an effect on Chromalloy, the cost of an 
additional rulemaking to change the Florida Administrative Code would 
need to be incurred by the State of Florida. Whether Florida would 
decide to change its Administrative Code is uncertain.
    In summary, this petition is being denied because no benefits of 
granting the petition could be identified and the cost of granting the 
petition would include two rulemakings. Thus, when viewed in terms of 
regulatory effectiveness and efficiency, the NRC can not justify the 
expenditure of resources to grant this petition. For the reasons cited 
in this document, the NRC denies the petition.

    Dated at Rockville, Maryland, this 16th day of July, 1999.

    For the Nuclear Regulatory Commission.
Frank J. Miraglia, Jr.,
Acting Executive Director for Operations.
[FR Doc. 99-19258 Filed 7-27-99; 8:45 am]
BILLING CODE 7590-01-P