**NRC INSPECTION MANUAL** RNRP

MANUAL CHAPTER 2545

RESEARCH AND TEST REACTOR INSPECTION PROGRAM

2545‑01 PURPOSE

To establish the program for inspection of research and test reactors
(RTRs).

2545‑02 OBJECTIVES

To ensure that the licensee\'s systems and techniques are in accordance
with regulatory requirements and provide acceptable protection of the
health and safety of the public.

2545-03 APPLICABILITY

This RTR inspection program is applicable to research or test reactors,
and critical facilities (also know as non-power reactors) licensed under
§§50.21(a), 50.21(c) or 50.22 of 10 CFR Part 50 for research and
development. It is implemented while an NRC license is issued for the
facility. This inspection program will remain in effect from the time a
facility gets licensed, through operations, shutdowns, possession only,
and decommission, and until the license is terminated.

2545‑04 DEFINITIONS OF INSPECTION FREQUENCIES

04.01 [Annual]{.underline}. Means that the RTR inspection program should
be performed at least once per year with the interval not to exceed 15
months.

04.02 [Biennial]{.underline}. Means that the RTR inspection program
should be performed at least once every two years with the interval not
to exceed two years and six months.

04.03 [Triennial]{.underline}. Means that the RTR inspection program
should be performed at least once every three years with the interval
not to exceed three years and nine months.

2545‑05 RESPONSIBILITIES AND AUTHORITIES

05.01 [Chief, Research and Test Reactors Section]{.underline}

a.  Ensures, within budget limitations and management direction, that
    the RTR inspection staff includes adequate numbers of inspectors in
    the various disciplines necessary to carry out this RTR inspection
    program.

b.  Applies inspection resources, as necessary, to deal with significant
    issues and problems at specific RTRs and generically.

c.  Develops the implementation of policies, programs, and procedures
    for inspecting applicants, licensees, and other entities subject to
    NRC jurisdiction.

d.  Assesses the effectiveness, uniformity, and completeness of
    implementation of the RTR inspection program.

05.02 [Inspectors]{.underline} will, in accordance with management
direction, plan and conduct inspections in accordance with this program.

2545-06 POLICY

The general policy for regulation of RTRs is described in the Atomic
Energy Act of 1954, as amended, Section 104.c which states:

> \"The Commission is directed to impose only such minimum amount of
> regulation of the licensee as the Commission finds will permit the
> Commission to fulfill its obligations under this Act to promote the
> common defense and security and to protect the health and safety of
> the public and will permit the conduct of widespread and diverse
> research and development.\"

This general policy is reenforced by the NRC\'s inspection policies. For
example, the clear difference in licensee and NRC inspection
responsibilities. That is, the licensee is responsible for facility
safety and compliance with regulatory requirements, and the NRC
inspector is responsible to independently assess the licensee\'s
fulfilment of those responsibilities.

The NRC\'s minimum requirements referred to in the Atomic Energy Act of
1954, as amended, Section 104.c have been specified in various
regulatory and licensing documents for RTRs. These documents include the
10 CFR, the License including Technical Specifications, the Operator
Requalification Program, the Emergency Plan, the Radiation Protection
Plan, and the Safeguards/Physical Security Plan. In the enforcement of
these requirements, inspectors must keep in mind \"the minimum amount of
regulation \... to protect the public health and safety.\" Thus,
consistent with the enforcement policy, particular attention should be
placed on assuring the licensee is not penalized for effectively
identifying and correcting their own problems.

The above \"OBJECTIVES\" will be accomplished by direct observations of
licensed activities, interviews with personnel, and review of facility
records. Guidance is provided in Inspection Procedures referenced in
this Manual Chapter. These inspection procedures were designed to gather
facts to support inspection findings and conclusions. Inspection
observations, open items, or Inspection Procedure content is not to be
levied on licensees as requirements. Advice or recommendations are not
to be given to the licensee. Inspection conclusions are the judgement of
the organizational unit issuing the inspection report and are not a
personal document of the inspector. The licensee should be made aware
that documents that it gives to inspectors are subject to Freedom of
Information Act requests and may be placed in the Public Document Room.

Inspection and management personnel must maintain frequent
communications to assure a consistent focus on regulatory issues. These
communications should (1) keep in mind the policy of minimum regulation
that applies to RTRs, (2) maintain an awareness of RTR safety
significance, and (3) apply RTR requirements and standards.

2545‑07 GENERAL PROGRAM GUIDANCE

This manual chapter provides guidance for the scheduling, conduct, and
implementation of NRC inspections at RTRs. The program establishes
inspection methodology for operating, safeguards, and decommissioning
activities and conditions. The program is designed to provide sufficient
flexibility to optimize the use of inspection resources and provide
inspection commensurate with the safety significance of the RTR.

07.01 [Program Timeliness]{.underline}. Experience has shown that the
extent of the RTR inspection program is based on demands placed on
available inspection resources and licensee resources consistent with
the minimum regulation authorized by the Atomic Energy Act. For that
reason, the time allowed to complete the program has a nominal period
with a 25 percent maximum allowed period in the definitions of annual,
biennial and triennial. Further, some inspections activities are to be
performed as needed or when activities are conducted, e.g.,
decommissioning.

07.02 [Performance Based Approach]{.underline}. Using a
performance-based approach, inspectors focus their attention on
activities important to safety. Performance-based inspection emphasizes
observing activities and the results of licensee programs over reviewing
procedures or records. For example, an inspector may identify an issue
through observing a facility activity in progress, monitoring equipment
performance, or the in-facility results of an activity (e.g., an
engineering calculation), and then let the observation lead to
evaluation of other associated areas. Discussions with facility
personnel and reviewing documents should be used to enhance or verify
performance-based observations. This approach is designed to emphasize
observation of activities. Although most aspects of the inspection
program are performed onsite using the performance based approach,
certain activities can be conducted in the inspector's office, i.e.,
portions of procedure review and administrative program inspection.

NRC inspectors perform a basic mission in determining whether a
licensee's RTR is acceptably safe and meets current regulatory
requirements and commitments. Limiting inspection to identification of
specific instances where a licensee fails to meet such requirements and
commitments could result in correction of symptoms rather than
correction of underlying causes of licensee problems. The inspection and
assessment processes establish thresholds for determining the
significance of issues and whether those issues may require additional
evaluation and follow up. Thus, the inspection program requires that
inspectors and their managers evaluate problems to determine if followup
inspections are necessary to diagnose whether a safety concern
represents an isolated case or may signify a broader, more serious
problem. Licensee management controls (e.g., review, audit and safety
committees, management reviews, etc.) may need to be examined to
determine if weaknesses in these controls contributed to identified
safety concerns.

07.03 [Program Feedback]{.underline}. The reactor inspection program is
expected to be dynamic and to respond to changes in the RTR community
and operational experience. Therefore, management and inspectors are to
identify problems in implementing the program, and to recommend changes
to the program for consideration by the program office. Any such
feedback and recommendations should be submitted to the responsible
Section Chief or Program Director.

The fundamental building blocks that form the framework for the
regulatory feedback program are seven cornerstones of safety; initiating
events, mitigating systems, barrier integrity, emergency preparedness,
occupational radiation safety, public radiation safety, and physical
protection. These cornerstones have been grouped into three strategic
areas: reactor safety, radiation safety, and safeguards. This framework
is based on the principle that the agency's mission of assuring public
health and safety is met when the agency has reasonable assurance that
licensee's are meeting the objectives of the seven cornerstones of
safety. The reactor inspection program is an integral part, along with
performance assessment, and enforcement, of this feedback program.
Acceptable performance in the cornerstones, as measured by the
inspection program, is indicative of overall performance that provides
for adequate protection of public health and safety.

Another principle of the framework is that there is a level of
performance above which the NRC does not need to engage the licensee
beyond this inspection program's requirements. This inspection program
provides the information used in determining licensee performance in the
cornerstones of safety.

The supplemental inspection will provide more diagnostic inspections of
identified problems and issues beyond the program. Supplemental
inspections will be planned in response to issues assessed by the
inspector, project manager, license examiner, and their supervisor to
require such.

07.04 [Use of Inspection Procedures]{.underline}. The RTR inspection
programs consists of the inspection procedures for each RTR class,
category or situation. The inspection procedures represent an acceptable
inspection effort to allow the NRC to assess facility safety and
compliance to applicable requirements. Although each inspection
procedure contains many inspection requirements, the individual
inspector is expected to apply professional judgment regarding the need
for completing each specific item. For example, the inspector may have
assurance that the basic requirement has been satisfied via some other
source (i.e., licensee event report followup, independent inspection
effort, temporary instructions followup). In such cases the inspector
does not need to perform these specific items and should discuss these
differences with the responsible supervisor. In summary, the items in
Section 02 of inspection procedures lists the attributes which should be
considered when evaluating the area covered by the inspection procedure.
Certain aspects may be conducted in the office, e.g., portions of
administrative program inspection. Inspectors will conduct inspections
using applicable inspection procedures as directed by their supervisor.

Inspection procedures identify requirements that the inspector considers
while evaluating the associated area. These requirements may not be the
same as NRC requirements placed on a specific licensee. As such, it is
not implied or intended that inspection program requirements are to be
levied on the licensee. Any attempt to force inspection program
requirements on the licensee constitutes misinterpretation of NRC
inspection philosophy and misuse of inspection requirements.

Temporary instructions are issued for specific inspection purposes. For
inspections performed using a temporary instruction, the inspector is
expected to complete all inspection requirements listed.

An open item is a matter that requires further review and evaluation by
an inspector. It is used to document, track, and ensure adequate
followup on matters of concern to the inspector.

As a general rule, inspections should be conducted in accordance with
inspection procedures. However, it is not possible to anticipate all the
unique circumstances that might be encountered during the course of a
particular inspection and, therefore, individual inspectors are expected
to exercise initiative in conducting inspections, based on their
expertise and experience, as needed, to assure that all the inspection
objectives are met. The inspector may also conduct independent
inspection activities. There are no stated goals for inspections on
backshift or for independent inspection. However, backshift inspection
will be performed whenever required to complete the inspection.

07.05 [Inspection Plans]{.underline}. To facilitate management of
inspection resource allocations and tracking of inspection programs, the
inspector shall annually develop facility‑specific inspection plans
consistent with this Manual Chapter. The responsible supervisor will
develop an integrated inspection plan (i.e., the integration of
individual facility or RTR plans). This integrated inspection plan
should project the planned inspection activities and available resources
for all RTRs for at least the next 12 months.

The results of past inspections, event evaluations, and inspector and
management reviews shall be used to schedule and determine the focus of
planned inspections at each facility. The basis for the allocation or
significant reallocation of resources among the RTRs will be documented.
It is expected that the integrated plans will be living documents and be
reviewed periodically, adjusted, and reissued to reflect shifts in
facility performance and safety concerns. Individual facility plans and
the integrated inspection plan should be reviewed by management and
updated at least semiannually.

07.06 [Management Entrance and Exit Meetings]{.underline}. Inspectors
are required to meet with licensee management as part of every
inspection. Inspectors should hold an entrance meeting with the senior
licensee representative who has responsibility for the areas to be
inspected. Each inspection must include discussing inspection results
with licensee management. At the conclusion of an inspection, inspectors
must discuss their preliminary findings with the licensee's management
at a scheduled exit meeting. Entrance and exit meetings with licensee
personnel should be scheduled to have the minimum impact on other
licensee activities necessary to assure the safe operation of the
facility.

Time spent on scheduled and periodic entrance and exit meetings is
considered part of preparation and documentation of inspections and
should be charged as such. Daily communications with licensee management
are considered to be an integral part of every inspection procedure and
the time used for such routine communications should be charged to the
inspection procedures used.

Communicating inspection observations is an integral and important part
of every inspection, whether done daily during the course of an
inspection, or periodically with status meetings. Observations or
insights that do not reach the threshold for describing in "Research and
Test Reactor Inspection Reports" (see IMC 0615) should be conveyed to
the licensee for its consideration.

07.07 [Inspection Reports]{.underline}. Inspection reports will be
prepared in accordance with the guidance in IMC 0615

07.08 [Responding to Events and Event Reports]{.underline}. Events of
low significance, such as uncomplicated reactor trips, may be followed
up by an inspectors on the next planned inspection to verify that the
events are not complicated by loss of mitigation equipment or other
factors. Licensees often notify inspectors of events or conditions in
anticipation of the inspectors' interest in the issue, but such
notifications do not exempt the licensee from reporting events and
conditions through the required regulatory processes. Therefore,
licensees should be informed that such notifications may not fulfill all
reporting requirements. Regardless of the source of the information on
the event, inspectors should review facility events to determine whether
the NRC should devote additional effort and resources to respond to the
event. The review should be acknowledged in an inspection report. The
agency's event response uses a graded approach based on the risk
significance of events, as described in NRC Management Directive 8.3,
"NRC Incident Response Program."

2545‑08 OPERATIONAL INSPECTION

This section specifies the inspection frequencies and procedures for
operating RTRs.

08.01 [Class I RTRs]{.underline}. These have licensed power levels of 2
megawatts (MW) or greater. For these RTRs, the operations portion of the
inspection program will be completed annually. Completion of this
portion of the program involves the conduct of the following inspection
procedures:

Inspection Procedure 69003- Class I Research and Test Reactor Operator
Licenses, Requalification, and Medical Activities

Inspection Procedure 69004- Class I Research and Test Reactor Effluent
and Environmental Monitoring

Inspection Procedure 69005- Class I Research and Test Reactor
Experiments

Inspection Procedure 69006- Class I Research and Test Reactors
Organization and Operations and Maintenance Activities

Inspection Procedure 69007- Class I Research and Test Reactor Review and
Audit and Design Change Functions

Inspection Procedure 69008- Class I Research and Test Reactor Procedures

Inspection Procedure 69009- Class I Research and Test Reactor Fuel
Movement

Inspection Procedure 69010- Class I Research and Test Reactor
Surveillance

Inspection Procedure 69011- Class I Research and Test Reactor Emergency
Preparedness

Inspection Procedure 69012- Class I Research and Test Reactors Radiation
Protection

Inspection Procedure 86740- Transportation

08.02 [Class II RTRs]{.underline}. These have licensed power levels of
less than 2 MW. For these RTRs, the operations portion of the inspection
program will be completed biennially. Completion of this portion of the
program involves the conduct of the Inspection Procedure 69001, "Class
II Research and Test Reactors," and Inspection Procedure 86740,
"Transportation."

08.03 [Class III RTRs]{.underline} are Class I RTRs or Class II RTRs
that are on extended shutdown (e.g., shutdowns greater than one year for
a Class I and greater than two years for a Class II) or that only have
authority to possess and not operate. For these RTRs, the operations
portion of the inspection program will be completed triennially.
Completion of this portion of the program involves the conduct of the
Inspection Procedure 69002, "Class III Research and Test Reactors," and
Inspection Procedure 86740, "Transportation." For Class III RTRs,
reactive inspection of safety significant changes, such as shipment of
fuel, loss of operating staff, or degradation of safety equipment should
be conducted at the inspector's discretion. These inspections should use
the appropriate inspection procedure from the Class I or Class II
portions of this program and should be discussed with the responsible
supervisor. Since reactor fuel and SNM may be stored on‑site, physical
security and safeguards programs should be inspected at the interval
specified for the safeguards category.

This class of RTR may also include reactors that have decided to
permanently shutdown. To reduce the effort required to maintain the
facility in a non-operating mode, the licensee may propose to reduce
related Technical Specification requirements, including equipment
operability, inspections, and surveillance procedures. Other program
reductions may also be proposed in the areas of security, emergency
planning, operator requalification, and staffing. After NRC approval of
these reductions, the facility enters the possession only (PO) phase. In
general, the licensee will not be authorized to remove or dismantle
major reactor systems under a possession only amendment. Certain changes
to the facility can be made as allowed by 10 CFR 50.59. The Inspector
should verify implementation of the amendments and maintain the
inspection frequency on a three‑year‑cycle until decommissioning.

RTRs that are authorized by license amendment or order to decommission
the facility will be inspected in accordance with the decommissioning
inspection portion of this program.

2545‑09 DECOMMISSIONING INSPECTION

This portion of the inspection program will be applied to RTRs that are
authorized by license amendment or order to decommission. For
permanently shutdown reactors, reactive inspection of safety significant
changes, such as shipment of fuel, loss of operating staff, or
degradation of safety equipment should be conducted at the inspector's
discretion. These inspections should use the appropriate inspection
procedure from the operations phase and be discussed with the
responsible supervisor.

Fuel disposal delays could also influence the licensee to submit a less
detailed decommissioning plan (DP) as allowed by 10 CFR 50.82(b)(2)
within two years of the permanent cessation of operations. In
recognition of this, licensees may delay decommissioning as allowed by
10 CFR 50.82(b)(4)(i). Inspection in this case would follow the program
requirements for Class III RTRs.

Prior to decommissioning, the licensee should characterize the amount,
type, form, and location of radioactive material remaining at the
facility. This could include minor disassembly, breaching of some
protective barriers, or other physical modifications. The licensee
should also be expected to inventory, rearrange, organize, survey,
prepare, and dispose of miscellaneous radioactive materials and wastes,
in a manner similar to activities customary under the Operating License
and in accordance with 10 CFR 50.59. This includes routine housekeeping,
removal of systems not described in the SAR, and removal of easily
accessed and removed facility and experimental components. After
characterization of the residual radioactive material, the licensee
should prepare and submit for NRC approval a Decommissioning Plan (DP)
in accordance with 50.82(b)(4) using as guidance the format and content
suggested in NUREG-1537. Concurrently, management policies and
procedures should be prepared to support dismantling and decontamination
of the facility as described in the DP.

09.01 [Phases of Decommissioning]{.underline}. Two phases of
decommissioning apply to this portion of the inspection program.

a.  The decontamination and dismantlement phase, which occurs after the
    license amendment authorizing implementation of the Decommissioning
    Plan has been issued.

b.  The license termination phase, which occurs after all licensee
    remediation and final status surveys have been completed. This phase
    may include an NRC confirmatory radiation survey to verify that the
    facility is suitable for unconditional or conditional release and
    license termination.

09.02 [Decontamination and Dismantlement]{.underline}

Upon the issuance of the license amendment authorizing dismantlement and
decontamination, the licensee will be functioning under entirely new
requirements and responsibilities. Inspectors should use Inspection
Procedure 69013, "Research and Test Reactor Decommissioning," at this
time. Since decommissioning is a one time process, the inspection
program consists of a combination of routine and reactive inspections
that are planned to coincide with the preparation and performance of
safety significant activities. Inspections are expected to be more
frequent during the initial stages of decommissioning to verify that the
licensee has implemented the programs to support decontamination and
dismantlement activities. The inspector should discuss progress and
milestones with the licensee and adjust the inspection schedule
accordingly in consultation with the responsible supervisor. In summary,
the inspector should prepare a plan to complete the requirements of
Inspection Procedure 69013 coincident with the licensee's
decontamination and dismantlement schedule.

The inspector should verify that the organizational structure,
assignment of responsibilities and authorities, and appointment of key
personnel as described in the DP is complete before the work begins.
Work activities at the facility should be in accordance with the
approved DP. This document also becomes the new bases for continuing NRC
inspections. Because of the wide variability in RTR facility
characteristics, the DP will be facility specific. The specificity will
include the management structure and arrangements for planning and
implementing the decommissioning activities, programs for protection of
worker and public health and safety, handling and disposal of
radioactive materials, quality assurance, physical security, and the
final radiological measurements and report to support the request for
termination of the license.

09.03 [Confirmatory Radiation Surveys]{.underline}

Included in the DP will be a requirement for the licensee to provide a
final report that shows comprehensively, and in quantitative detail, the
residual radiological conditions of the facility. This information
should support the licensee conclusions that there is reasonable
assurance that the residual radioactive contamination and direct
radiation exposure conditions satisfy criteria for license termination
as specified in 10 CFR 20 Subpart E. Inspectors should use as applicable
Inspection Procedure 83801, "Inspection of Final Surveys at Permanently
Shutdown Rectors" at this time. Similar to the decontamination and
dismantlement portion of the program, the inspection will be of the
specific activities and should be tailored to licensee schedules.

The final NRC inspections must also be detailed and comprehensive enough
to validate that conclusion. Inspection personnel should be alert to
potential discrepancies of data, absences of significant information, or
areas and locations where confirmation measurements and analyses might
require unusual or special preparations or capabilities.

Licensees can use the Multi-Agency Radiation Survey and Site
Investigation Manual (MARSSIM) to determine sampling methods and
locations. This process yields probabilistic estimates of the likelihood
that the decontaminated site does not contain radioactive materials or
pose exposure conditions exceeding the criteria for license termination.
The inspector may need to plan a verification procedure to be consistent
with the licensee\'s methods of analysis and presentation of results of
the final survey.

The inspector should determine if the final status survey is acceptably
implemented as described in the DP. If the sampling and measurement
techniques, data, and quality assurance program are adequate as
determined by inspection, the licensee's results may be accepted without
further verification. However, for large sites with high levels or
extensive initial contamination, sites with considerable population
density after license termination, or sites where the inspection program
has shown multiple examples of unsatisfactory performance, an
independent review and a confirmatory survey should be arranged. In this
case, the inspector could choose to do a survey or send a Request For
Technical Assistance (RFTA) to the NMSS contract administrator who will
arrange for contractor assistance. The contractor will review the
licensee report for completeness and propose a confirmatory survey to
the inspector. If the proposal is acceptable, a Survey Plan Approval
Form (SPAF) will be returned to the contractor via NMSS. The inspector
will then schedule and coordinate the confirmatory survey with the
licensee. The results will be documented in a Confirmatory Survey Report
from the contractor. If the report demonstrates that the licensee's
survey is not statistically valid, additional remediation and resampling
will be required. If the report supports the licensee's results, the
site is suitable for release. The inspector then informs the RTR project
manager that decommissioning is complete and recommends that the license
be terminated.

2545‑10 SAFEGUARDS INSPECTIONS

The safeguards and security portion of the RTR inspection program uses a
graded approach. The approach is based on the amount of plutonium (Pu),
uranium-233 (U‑233) and uranium-235 (U‑235) that a RTR possesses. RTRs
possessing a formula quantity of non-exempt strategic special nuclear
material (FSNM) are the highest category, followed in order by RTRs
possessing non-exempt moderate strategic significance special nuclear
material (MSNM) and RTRs possessing quantities of non-exempt special
nuclear material of low strategic significance (LSNM). Currently,
security plans are tailored to the safeguards categories of material
that the licensee may possess, considering the quantity exempted under
10 CFR 73.60 or 73.67(b). The following table also shows the Safeguard
Category requirements for non-exempt (see below) inventory:

+--------+--------------+-------------+--------------+---------------+
| Ma     | Enrichment   | Cat I or    | Cat II or    | Cat III or    |
| terial |              | FSNM        | MSNM         | LSNM          |
+--------+--------------+-------------+--------------+---------------+
| Pu     |              | ≥2 kg       | \<2 kg &     | ≤500 g & \>15 |
|        |              |             | \>500 g      | g             |
+--------+--------------+-------------+--------------+---------------+
| U-233  |              | ≥2 kg       | \<2 kg &     | ≤500 g & \>15 |
|        |              |             | \>500 g      | g             |
+--------+--------------+-------------+--------------+---------------+
| U-235  | ≥20% U-235   | ≥5 kg       | \<5 kg & \>  | ≤1 kg & \>15  |
|        |              |             | 1 kg         | g             |
|        | \<20% & ≥10% |             |              |               |
|        |              |             | ≥10 kg       | \<10 kg & \>1 |
|        | \<10% &      |             |              | kg            |
|        | \>natural    |             |              |               |
|        |              |             |              | ≥10 kg        |
+--------+--------------+-------------+--------------+---------------+
| Sum of |              | ≥5 kg by    | \<5 kg by    | ≤1 kg by MSNM |
| Pu,    |              | FSNM        | FSNM formula | formula below |
| U‑233, |              |             | below &      | & \>15 g      |
| &      |              | formula     |              | U-233 +       |
| U-235  |              | below       | \>1 kg by    | U-235 + Pu    |
|        |              |             | MSNM formula |               |
|        |              |             | below        |               |
+--------+--------------+-------------+--------------+---------------+

FSNM formula = (grams of non-exempt contained U‑235) + 2.5 (grams of
non-exempt U‑233 + grams of non-exempt plutonium)

MSNM formula = (grams of non-exempt contained U‑235) + 2 (grams of
non-exempt U‑233 + grams of non-exempt plutonium)

The category of the safeguards protection that must be afforded by the
licensee should be determined before the inspector departs for the
facility, and the facility inspected as one of the following safeguards
category.

10.01 [Safeguards Category I (Cat I) or FSNM]{.underline}. This is a RTR
that possesses non-exempt material in a quantity of 5,000 grams or more
computed by the formula, grams = (grams contained U‑235) + 2.5 (grams
U‑233 + grams Pu). For these RTRs, the safeguards portion of the
inspection program will be completed annually. Completion of this
portion of the program involves the conduct of the following inspection
procedures:

Inspection Procedure 81401- Plans, Procedures, and Reviews

Inspection Procedure 81402- Reports of Safeguards Events

Inspection Procedure 81411- Physical Protection for Reactors with
Formula Quantities of Special Nuclear Material

Inspection Procedure 81810- Protection of Safeguards Information

Inspection Procedure 85102- Material Control and Accounting ‑ Reactors

Additionally, when new fuel is received, Inspection Procedure 81403,
"Receipt of New Fuel at Reactor Facilities" should be performed.

10.02 [Safeguards Category II (Cat II) or MSNM]{.underline}. This is a
RTR that possesses non-exempt material (1) Less than a Safeguards
Category I quantity but more than 1,000 grams of uranium‑235 (contained
in uranium enriched to 20 percent or more in the U‑235 isotope) or more
than 500 grams of uranium‑233 or Pu, or in a combined quantity of more
than 1,000 grams when computed by the equation, grams = (grams contained
U‑235) + 2 (grams U‑233 + grams Pu); or (2) 10,000 grams or more of
non-exempt uranium‑235 (contained in uranium enriched to 10 percent or
more but less than 20 percent in the U‑235 isotope). For these RTRs, the
safeguards portion of the inspection program will be completed
biennially. Completion of this portion of the program involves the
conduct of the following inspection procedures:

Inspection Procedure 81401- Plans, Procedures, and Reviews

Inspection Procedure 81402- Reports of Safeguards Events

Inspection Procedure 81421- Fixed Site Physical Protection of Special
Nuclear Material of Moderate Strategic Significance

Inspection Procedure 81810- Protection of Safeguards Information

Inspection Procedure 85102- Material Control and Accounting ‑ Reactors

Additionally, when new fuel is received, Inspection Procedure 81403,
"Receipt of New Fuel at Reactor Facilities" should be performed.

10.03 [Safeguards Category III (Cat III) or LSNM]{.underline}. This is a
RTR that possesses non-exempt material (1) Less than a Safeguards
Category II quantity as defined in paragraph (1) of the definition of
Safeguards Category II, but more than 15 grams of uranium‑235 (contained
in uranium enriched to 20 percent or more in U‑235 isotope) or 15 grams
of uranium‑233 or 15 grams of Pu or the combination of 15 grams when
computed by the equation, grams = (grams contained U‑235) + (grams Pu) +
(grams U‑233); or (2) Less than 10,000 grams but more than 1,000 grams
of uranium‑235 (contained in uranium enriched to 10 percent or more but
less than 20 percent in the U‑235 isotope); or (3) 10,000 grams or more
of uranium‑235 (contained in uranium enriched above natural but less
than 10 percent in the U‑235 isotope). For these RTRs, the safeguards
portion of the inspection program will be completed triennually.
Completion of this portion of the program involves the conduct of the
following inspection procedures:

Inspection Procedure 81401- Plans, Procedures, and Reviews

Inspection Procedure 81402- Reports of Safeguards Events

Inspection Procedure 81431- Fixed Site Physical Protection of Special
Nuclear Material of Low Strategic Significance

Inspection Procedure 81810- Protection of Safeguards Information

Inspection Procedure 85102- Material Control and Accounting ‑ Reactors

Additionally, when new fuel is received, Inspection Procedure 81403,
"Receipt of New Fuel at Reactor Facilities" should be performed.

10.04 [Non-exempt Material]{.underline}. This is the aggregate of all
U-235, U-233, or Pu within a specified site or building, except that
which is exempt due to its self-protecting nature. Material is exempt
from inclusion in the total inventory to the extent that it is not
readily separable from other radioactive material and has a radiation
dose rate in excess of 100 rem/hour at 3 feet (see 10 CFR 73.60 and
73.67(b)(1)). Furthermore, if the total inventory is equal to quantities
of MSNM, but the quantity in each building is equal to or less than
quantities of low strategic significance, the facility will be
considered to be Category III (10 CFR 73.67(b)(2)). However, the same
exemption (use of several buildings) does not exempt licensees
possessing LSNM from the physical protection requirements for LSNM.

Inspectors shall verify the licensee\'s contention that the quantity of
material exempt from inventory is not readily separable and does in fact
have a radiation dose rate in excess of 100 rem/hour at 3 feet.
Verification can be accomplished through evaluation and review of
operating history, screening through use of nomographs, or computation
by computer program.

In the event that material has not been maintained at the
self‑protecting level so that the total nonexempt inventory rises to the
next highest safeguards category, the licensee should provide increased
protection as required by their NRC-approved security plan. If the
approved plan includes sections to deal with this event, the licensee
must be inspected against these additional requirements. This can happen
during a long term shutdown, i.e., for a Class III RTR, or during
decommissioning.

Once a decision is made by the licensee to permanently shutdown, the
licensee should return the fuel and other special nuclear material (SNM)
to Department of Energy (DOE). The inspection requirements related to
the fuel and SNM can then be eliminated. However, factors beyond the
licensee\'s control could delay or prevent shipment of the fuel, such as
the availability of shipping casks or availability of DOE storage or
reprocessing capability. The need to store fuel and changing fuel
fission product conditions could change the inspection requirements and
procedures as discussed previously.

10.05 [Use of Safeguards Inspection Procedures]{.underline}. Except in
cases when the licensee has no physical security plan (PSP) for the
category of SNM possessed (e.g., see below), inspectors shall determine
[compliance]{.underline} based on the licensee\'s approved PSP, and
shall determine [adequacy]{.underline} and [effectiveness]{.underline}
of the licensee\'s program based on the applicable portions of 10 CFR
73.60 and 73.67 and generally accepted practices. Citations for
noncompliance should be based on the approved plan. Findings of
inadequacy should be referred to the appropriate licensing staff.

Licensees with possession limits less than MSNM or less than 10 kg of
LSNM are not required to have security plans (10 CFR 73.67(c)). Several
RTR are in this situation and are not required to have security plans.
Such licensees are required to meet the provisions of 10 CFR 73.67(f).
These requirements include: to store or use the material only within a
controlled access area; to monitor with an intrusion alarm or other
device or procedures, the controlled access areas to detect unauthorized
penetrations or activities; to assure that a watchman or offsite
response force will respond to all unauthorized penetrations or
activities; and to establish and maintain response procedures for
dealing with threats of thefts or thefts of this material. The inspector
will ensure that the licensee acceptably complies with these and other
requirements of 10 CFR 73.67(f). Findings in this regard should be
referred to the appropriate licensing staff.

END