[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Pages 12243-12245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4796]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 72-1007 and EA-05-045]


In the Matter of BNFL Fuel Solutions Corporation and All Other 
Persons Who Obtain Safeguards Information Described Herein

AGENCY: Nuclear Regulatory Commission.

[[Page 12244]]


ACTION: Issuance of Order imposing requirements for the protection of 
certain safeguards information.

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FOR FURTHER INFORMATION CONTACT: Cynthia Barr, Project Manager, 
Licensing and Inspection Directorate, Spent Fuel Project Office, Office 
of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Rockville, MD 20852. Telephone: (301) 415-4015; fax number: 
(301) 415-8555; e-mail [email protected].

SUPPLEMENTARY INFORMATION:

I

    In accordance with the Atomic Energy Act of 1954 and 10 CFR Part 
72, BNFL Fuel Solutions Corporation, (BNFL) holds Certificate of 
Compliance No. 1007 for the Model No. Ventilated Storage Cask (VSC-24). 
In a phone call on January 31, 2005, BNFL agreed to meet with the U.S. 
Nuclear Regulatory Commission (NRC) staff with Safeguards Information 
security measures in place. The purpose of the meeting(s) is to discuss 
the NRC's engineering evaluations performed to evaluate the safety and 
security of an array of VSC-24 storage casks. The meeting(s) will be 
closed to the public.
    Following the September 11, 2001, simultaneous terrorist events at 
the World Trade Center (WTC) in New York City and at the Pentagon in 
Virginia, the U.S. Government issued a nationwide alert for the 
potential of additional terrorist acts within the United States. The 
NRC initiated a comprehensive review of all NRC-licensed activities to 
evaluate those activities against threats. As part of that review, U.S. 
Nuclear Regulatory Commission initiated an engineering study to assess 
the consequences of a terrorist event, similar in magnitude to the WTC 
and Pentagon, on spent nuclear fuel transportation packages and storage 
casks. The NRC staff intends to discuss specific information on the 
engineering evaluations performed for the VSC-24 storage casks with 
BNFL. However, the Commission has determined that the material to be 
discussed at the meeting(s) is 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 10 CFR 73.21, so that BNFL can receive this information 
for review and comment at the closed meeting. This Order also imposes 
requirements for the protection of Safeguards Information in the hands 
of any person \1\, whether or not a Licensee of the Commission, who 
produces, receives, or acquires Safeguards Information.
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    \1\ 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, except that the Department shall be considered a person 
with respect to those facilities of the Department 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 Atomic Energy Act of 1954, as amended, grants the Commission 
explicit authority to ``issue such orders, as necessary to prohibit the 
unauthorized disclosure of safeguards information * * *''. This 
authority extends to information concerning special nuclear material, 
source material, and byproduct material, as well as production and 
utilization facilities. 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 as contained in 10 CFR 73.21. The Commission 
hereby provides notice that it intends to treat all violations of the 
requirements contained in 10 CFR 73.21, 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, and are considered to be trustworthy and 
reliable. 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 duties of employment. 
Licensees 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 10 CFR 
73.21. BNFL 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, maintain 
and implement their own acceptable policies and procedures. BNFL 
remains responsible for the conduct of their contractors. The policies 
and procedures necessary to ensure compliance with applicable 
requirements contained in 10 CFR 73.21 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; 
and removal of the Safeguards Information category.
    In order to provide assurance that BNFL is implementing prudent 
measures to achieve a consistent level of protection, to prohibit the 
unauthorized disclosure of Safeguards Information, BNFL shall implement 
the requirements identified in 10 CFR 73.21. The Commission recognizes 
that BNFL may have already initiated many of the measures set forth in 
10 CFR 73.21 to this Order for handling of Safeguards Information in 
conjunction with a previous NRC Order. In addition, pursuant to 10 CFR 
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 53, 57, 62, 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 72, it is 
hereby ordered, effective immediately, that BNFL and all other persons 
who produce, receive, or acquire the safeguards information described 
above, and any related safeguards information, shall comply with the 
requirements of 10 CFR 73.21.
    The Director, Office of Nuclear Materials Safety and Safeguards, 
may in writing, relax or rescind any of the above conditions upon 
demonstration by the licensee.

IV

    In accordance with 10 CFR 2.202, BNFL must, and any other person 
adversely affected by this Order may,

[[Page 12245]]

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 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. 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, and to BNFL 
if the hearing request is by a person other than BNFL. Because of 
possible disruptions in delivery of mail to United States Government 
offices, it is requested that 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 other than BNFL 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 BNFL 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), BNFL 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. A request for hearing shall not stay the immediate 
effectiveness of this Order.

    Dated this 3rd day of March 2005.

    For the Nuclear Regulatory Commission.
Margaret V. Federline,
Deputy Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 05-4796 Filed 3-10-05; 8:45 am]
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