[Federal Register Volume 67, Number 166 (Tuesday, August 27, 2002)]
[Notices]
[Pages 55043-55045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21746]


-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

[Docket No. 70-143; License No. SNM-124]


Nuclear Fuel Services, Inc., Erwin, TN; Order Modifying License 
(Effective Immediately)

I

    Nuclear Fuel Services, Inc. (NFS), is the holder of Special Nuclear 
Material License SNM-124 issued by the U.S. Nuclear Regulatory 
Commission (NRC or Commission) pursuant to 10 CFR part 70. NFS is 
authorized by their license to receive, possess, and transfer 
byproduct, source, and 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.

[[Page 55044]]

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 commenced 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 required to be implemented by NFS 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 pending notification from the 
Commission that a significant change in the threat environment occurs, 
or if the Commission determines that other changes are needed.
---------------------------------------------------------------------------

    \1\ Attachment 1 contains classified information and will not be 
released to the public.
---------------------------------------------------------------------------

    The Commission recognizes that some of the requirements set forth 
in Attachment 1 \2\ to this Order may already have been initiated by 
NFS in response to previously issued advisories, or on its own. It is 
also recognized that some measures may need to be tailored to 
specifically accommodate the specific circumstances and characteristics 
existing at NFS's facility to achieve the intended objectives and avoid 
any unforeseen effect on safe operation.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    Although NFS's response to the Safeguards and Threat Advisories has 
been adequate to provide reasonable assurance of adequate protection of 
public health and safety, the Commission believes that the response 
must be supplemented because of the current threat environment. As a 
result, it is appropriate to require certain security measures so that 
they are maintained within the established regulatory framework. In 
order to provide assurance that NFS is implementing prudent measures to 
achieve an adequate level of protection to address the current threat 
environment, Special Nuclear Materials License SNM-124 shall be 
modified to include the requirements identified in Attachment 1 to this 
Order. In addition, pursuant to 10 CFR 2.202 and 70.81, I find that, in 
the circumstances described above, the public health, safety and 
interest and the common defense and security require that this Order be 
immediately effective.

III

    Accordingly, pursuant to Sections 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 special nuclear materials 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, unless otherwise specified in Attachment 
1 to this order, no later than February 28, 2003.
    B. 1. NFS shall, within twenty (20) days of the date of this Order, 
notify the Commission, (1) if it is unable to comply with any of the 
requirements described in Attachment 1, (2) if compliance with any of 
the requirements is unnecessary in its specific circumstances, or (3) 
if implementation of any of the requirements would cause NFS to be in 
violation of the provisions of any Commission regulation or its 
license. The notification shall provide NFS's justification for seeking 
relief from or variation of any specific requirement.
    2. If NFS considers that implementation of any of the requirements 
described in Attachment 1 to this Order would adversely impact safe 
operation of its facility, NFS must notify the Commission, within 
twenty (20) days of this Order, of the adverse safety impact, the basis 
for its determination that the requirement has an adverse safety 
impact, and either a proposal for achieving the same objectives 
specified in the Attachment 1 requirement in question, or a schedule 
for modifying the facilities to address the adverse safety condition. 
If neither approach is appropriate, NFS must supplement its response to 
Condition B1 of this Order to identify the condition as a requirement 
with which it cannot comply, with attendant justifications as required 
in Condition B1.
    C. 1. NFS shall, within twenty (20) days of the date of this Order, 
submit to the Commission a schedule for achieving compliance with each 
requirement described in Attachment 1.
    2. NFS shall report to the Commission when it has achieved full 
compliance with the requirements described in Attachment 1.
    D. 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 pending notification from the Commission 
that a significant change in the threat environment occurs, or until 
the Commission determines that other changes are needed.
    NFS's responses to Conditions B.1, B.2, C.1, and C.2, above shall 
be submitted in accordance with 10 CFR 70.5 SNM-124. In addition, NFS's 
submittals that contain classified information shall be properly marked 
and handled in accordance with 10 CFR 95.39
    The Director, Office of Nuclear Material Safety and Safeguards, 
may, in writing, modify, relax or rescind any of the above conditions 
upon demonstration by NFS of good cause.

IV

    In accordance with 10 CFR 2.202 and 70.81, NFS must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order, and may request a hearing on this Order, within twenty (20) days 
of the date of this Order. Where good cause is shown, consideration 
will be given to extending the time to request a hearing. A request for 
extension of time in which to submit an answer or request a hearing 
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. The 
answer may consent to this Order. Unless the answer

[[Page 55045]]

consents to this Order, the answer shall, in writing and under oath or 
affirmation, specifically set forth the matters of fact and law on 
which NFS or other person adversely affected relies and the reasons as 
to why the Order should not have been issued. Any answer or request for 
a hearing shall be submitted to the Secretary, 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, and the Director, Office of 
Enforcement, 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 if the answer or 
hearing request is by a person other than NFS. Because of continuing 
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 by e-mail to [email protected]. If a person other than NFS 
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).\3\
---------------------------------------------------------------------------

    \3\ The most recent version of Title 10 of the Code of Federal 
Regulations, published January 1, 2002, inadvertently omitted the 
last sentence of 10 CFR 2.714(d) and subparagraphs (d)(1) and (2), 
regarding petitions to intervene and contentions. Those provisions 
are extant and still applicable to petitions to intervene. Those 
provisions are as follows: ``In all other circumstances, such ruling 
body or officer shall, in ruling on--(1) A petition for leave to 
intervene or a request for hearing, consider the following factors, 
among other things: (i) The nature of the petitioner's right under 
the Act to be made a party to the proceeding. (ii) The nature and 
extent of the petitioner's property, financial, or other interest in 
the proceeding. (iii) The possible effect of any order that may be 
entered in the proceeding on the petitioner's interest. (2) The 
admissibility of a contention, refuse to admit a contention if: (i) 
The contention and supporting material fail to satisfy the 
requirements of paragraph (b)(2) of the section; or (ii) The 
contention, if proven, would be of no consequence in the proceeding 
because it would not entitle petitioner to relief.
---------------------------------------------------------------------------

    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), NFS may, in addition to 
demanding 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 21st day of August 2002.
    For the Nuclear Regulatory Commission.
Martin J. Virgilio,
Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 02-21746 Filed 8-26-02; 8:45 am]
BILLING CODE 7590-01-P