35600 Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations

§ 217.5 Designated countries.

(a)(1) Visa Waiver Pilot Program

Countries. United Kingdom (effective

July 1, 1988); Japan (effective December

15, 1988); France and Switzerland

(effective July 1, 1989); Germany and

Sweden (effective July 15, 1989); Italy

and the Netherlands (effective July 29,

1989); Andorra, Austria, Belgium,

Denmark, Finland, Iceland,

Liechtenstein, Luxembourg, Monaco,

New Zealand, Norway, San Marino, and

Spain (effective October 1, 1991); Brunei

(effective July 29, 1993); and Argentina

July 8, 1996, have been designated as

Visa Waiver Pilot Program countries

based on the criteria set forth at sections

217(a)(2)(A) and 217(c) of the Act.

* * * * *

Dated: June 24, 1996.

Doris Meissner,

Commissioner, Immigration and

Naturalization Service.

[FR Doc. 96–16624 Filed 7–5–96; 8:45 am]

BILLING CODE 4410–10–M

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 110

RIN 3150–AF51

Export of Nuclear Equipment and

Materials

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations pertaining to the export of

nuclear equipment and materials. These

amendments are necessary to conform

the export controls of the United States

to the international export control

guidelines of the Nuclear Suppliers

Group, of which the United States is a

member, and to reflect the nuclear

nonproliferation policies of the

Department of State.

EFFECTIVE DATE: August 7, 1996.

FOR FURTHER INFORMATION CONTACT:

Elaine O. Hemby, Office of International

Programs, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, telephone (301) 415–2341, e-mail

EOH@NRC.GOV.

SUPPLEMENTARY INFORMATION: The

Nuclear Regulatory Commission (NRC)

is amending its regulations pertaining to

the export of nuclear materials and

equipment. Cambodia and Vietnam are

removed from the list of embargoed

destinations; Algeria, Comoros, Guyana,

Mauritania, Niger, St. Kitts, United Arab

Emirates, Vanuatu, and Yemen Arab

Republic are removed from the list of

restricted destinations; Brazil, New

Zealand, Republic of Korea, South

Africa, and Ukraine are added as

member countries of the Nuclear

Suppliers Group (NSG) eligible to

receive radioactive materials under

certain general licenses for export;

Austria and Finland are added as

eligible countries to receive nuclear

reactor components under general

license for export; plants for the

conversion of uranium and especially

designed or prepared equipment for

uranium conversion are added to the

export controls of the NRC; the kinds of

uranium conversion equipment and

uranium enrichment equipment under

NRC export licensing authority are

added for clarification; exports of less

than one kilogram of source or special

nuclear material exported under the

U.S.-IAEA Agreement for Cooperation

no longer require Executive Branch

review before an NRC license is issued;

a general license to export source

material and a general license for import

are amended to correct inadvertent

errors; a reference is added to clarify

that some imports and exports of

nuclear items are under Department of

State controls; and Appendices B and L

to Part 110 are amended to correct

errors.

Section 110.1, which describes the

scope of 10 CFR Part 110, is revised to

add a reference that nuclear items on

the U.S. Munitions List are subject to

the export controls of the Department of

State.

In § 110.8, which lists the nuclear

facilities and equipment under NRC

export authority, and in the appendices

to Part 110, which describe the

especially designed and prepared

equipment under NRC export controls,

the word ‘‘specially’’ where it appears is

changed to ‘‘especially’’ to conform to

the NSG guidelines.

Section 110.8 is amended to add

uranium conversion plants and

especially designed or prepared

equipment for uranium conversion

plants to the export authority of the

NRC to conform to the NSG guidelines.

Recently, the United States and other

member countries of the NSG agreed to

add to the NSG Trigger List (INFCIRC/

254/Part 1) uranium conversion plants.

This includes conversion of uranium

ore concentrates to UO3, conversion of

UO3 to UO2, conversion of uranium

oxides to UF4 or UF6, conversion of

UF4 to UF6, conversion of UF6 to UF4,

conversion of UF4 to uranium metal,

and conversion of uranium fluorides to

uranium oxides. The nuclear materials

and equipment designated as ‘‘trigger

list’’ items are controlled by the NRC.

Conversion of uranium is an essential

step of the nuclear fuel cycle for both

civil and military programs, including

the production of highly enriched

uranium and plutonium. In § 110.2, a

definition of ‘‘conversion facility’’ is

added for clarification.

Exports of uranium conversion plants

and equipment are presently controlled

by the Department of Commerce (DOC).

The addition of uranium conversion

plants to the NRC licensing authority

will allow the DOC to remove this item

from its nuclear referral list.

Accordingly, § 110.1(b)(3), which

describes nuclear-related commodities

that are subject to DOC export controls,

is revised to remove the reference to

DOC controls on conversion plants.

In § 110.22, paragraph (c) is amended

to delete the word ‘‘not’’ where it first

appears. This action is necessary to

correct an inadvertent error in a final

rule published July 21, 1995 (60 FR

37556). As corrected, § 110.22(c)

authorizes the export of uranium or

thorium, other than U–230, U–232, Th–

227, or Th–228, in individual shipments

of one kilogram or less to any country

listed in § 110.29, not to exceed 100

kilograms per year to any one country,

except for source material in radioactive

waste.

In § 110.26, Austria and Finland are

added as eligible recipients of nuclear

reactor components under the NRC’s

general license authority for export.

These countries are now members of

EURATOM. EURATOM has provided

the necessary written assurances to the

U.S. Government to permit these kinds

of exports.

In § 110.27, which describes the

general licenses for import, paragraph

(4) is amended to delete the term

‘‘advance’’ to describe the kind of

notification required. For some

activities under § 73.27, advance

notification would not apply.

In § 110.28, which lists the embargoed

destinations, Cambodia and Vietnam are

removed. Because President Clinton

lifted the U.S. general trade embargo

against Vietnam on February 3, 1995,

and the embargo restrictions for

Cambodia in 1993, the Executive Branch

recently recommended that Cambodia

and Vietnam be removed from the

embargoed destinations. Both Cambodia

and Vietnam are adherents to the Treaty

on the Non-Proliferation of Nuclear

Weapons (NPT). Exports to Cambodia

and Vietnam now qualify for the NRC

general licensing authorizations

specified in §§ 110.21 through 110.25.

In § 110.29, Algeria, Comoros,

Guyana, Mauritania, Niger, St. Kitts,

United Arab Emirates, Vanuatu, and

Yemen Arab Republic are removed from
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35601

the restricted destinations. The

Executive Branch recently

recommended that these countries be

removed because they are NPT

adherents. Accordingly, exports to these

countries now qualify for the NRC

general licensing authorizations

specified in §§ 110.21 through 110.25.

In § 110.30, Brazil, New Zealand,

Republic of Korea, South Africa, and

Ukraine are added as members of the

NSG. Accordingly, these countries are

eligible to receive radioactive materials

under NRC general licenses.

In § 110.41, paragraph (4) is amended

to reflect the Executive Branch

judgment that any export of less than

one kilogram of source or special

nuclear material which is exported

under the provisions of the U.S.-IAEA

Agreement for Cooperation does not

require review by the Executive Branch.

In Appendix B to Part 110, which

describes the gas centrifuge equipment

under NRC licensing authority, the

footnote to section 1 is amended to

change the specifications for filamentary

materials suitable for gas centrifuge

rotating components. This action is

necessary to correct errors when the

equations were converted from English

to metric units. The current level of

control catches items with a wide

variety of non-nuclear, non-sensitive

applications. Section 1.2 of Appendix B

is amended to clarify the kinds of static

components NRC controls to reflect the

NSG Guidelines.

New appendices to Part 110 are added

to clarify the uranium enrichment

equipment and uranium conversion

equipment under NRC export licensing

authority to reflect the guidelines of the

NSG. The appendices are illustrative

only and not inclusive. Corresponding

changes are made to § 110.8.

In Appendix L, which lists the

byproduct materials under NRC

licensing controls, the entry ‘‘Tungsten

185 (w 85)’’ is corrected to read

‘‘Tungsten 185 (W 185).’’

The NRC has determined that this

rule is necessary to reflect the Executive

Branch’s nuclear non-proliferation

policies and to conform the export

controls of the United States to the

international export control guidelines

of the NSG, of which the United States

is a member. The rule also corrects

several minor, inadvertent errors from

previous rulemakings.

Because the substance of this rule

involves a foreign affairs function of the

United States, the notice and comment

provisions of the Administrative

Procedure Act do not apply (5 U.S.C.

553(a)(1)). In addition, solicitation of

public comments would delay United

States conformance with its

international obligations and would

thus be contrary to the public interest (5

U.S.C. 553(b)).

Small Business Regulatory Enforcement

Fairness Act

In accordance with the Small

Business Regulatory Enforcement

Fairness Act of 1996, the NRC has

determined that this action is not a

major rule and has verified this

determination with the Office of

Information and Regulatory Affairs of

OMB. The rule is necessary to conform

the nuclear nonproliferation policies of

the United States with international

export guidelines.

Environmental Impact: Categorical

Exclusion

The NRC has determined that this

final rule is the type of action described

in categorical exclusion 10 CFR

51.22(c)(1) and (c)(2). Therefore, neither

an environmental impact statement nor

an environmental assessment has been

prepared for this final rule.

Paperwork Reduction Act Statement

This final rule does not contain a new

or amended information collection

requirement subject to the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.). Existing requirements in

§§ 110.26, 110.31, 110.32, 110.53 and

the use of Form NRC 7 were approved

by the Office of Management and

Budget, approval numbers 3150–0036

and 3150–0027.

Public Protection Notification

The NRC may not conduct or sponsor,

and a person is not required to respond

to, a collection of information unless it

displays a currently valid OMB control

number.

Regulatory Analysis

The final rule eliminating the

requirement for a specific license in

some circumstances should have a

positive economic effect on U.S. export

business. U.S. exporters can ship

nuclear equipment and materials under

the NRC general license authority to

additional foreign markets without the

expense of license application fees, the

paperwork burden, time delays, and

uncertainties in delivery. For the first

time, Cambodia and Vietnam are

eligible to receive certain NRC nuclear

materials under general license. Austria

and Finland are now eligible to receive

nuclear reactor equipment under NRC

general license. In addition, Brazil, New

Zealand, Republic of Korea, South

Africa, Ukraine, Algeria, Comoros,

Guyana, Mauritania, Niger, St. Kitts,

United Arab Emirates, Vanuatu, and

Yemen Arab Republic can now receive

certain nuclear materials under NRC

general licenses.

In transferring export authority of

uranium conversion plants and

equipment from the DOC to NRC export

authority, the Commission was aware of

a potential detrimental impact on

exporters because of the license fee

imposed by NRC for each license

application submitted. However,

according to DOC export licensing data,

the DOC issued only one export license

for conversion equipment in the past

five years, at a value of $317,000. In

view of this information, the NRC

continues to believe that the economic

impact of the rule on U.S. companies is

not significant.

There are no alternatives for achieving

the stated objective. This rule conforms

NRC’s export controls to the

international export guidelines of the

NSG. Thus, the regulation is required to

satisfy international obligations of the

United States. The foregoing discussion

constitutes the regulatory analysis for

this final rule.

Backfit Analysis

The NRC has determined that a

backfit analysis is not required for this

final rule because these amendments do

not include any provisions that would

require backfits as defined in 10 CFR

50.109(a)(1).

List of Subjects in 10 CFR Part 110

Administrative practice and

procedure, Classified information,

Criminal penalties, Export, Import,

Intergovernmental relations, Nuclear

materials, Nuclear power plants and

reactors, Reporting and recordkeeping

requirements, Scientific equipment.

For the reasons set out in the

preamble and under the authority of the

Atomic Energy Act of 1954, as amended,

the Energy Reorganization Act of 1974,

as amended, and 5 U.S.C. 552 and 553,

the NRC is adopting the following

amendments to 10 CFR Part 110.

PART 110—EXPORT AND IMPORT OF

NUCLEAR EQUIPMENT AND

MATERIAL

1. The authority citation for part 110

continues to read as follows:

Authority: Secs. 51, 53, 54, 57, 63, 64, 65,

81, 82, 103, 104, 109, 111, 126, 127, 128, 129,

161, 181, 182, 183, 187, 189, 68 Stat. 929,

930, 931, 932, 933, 936, 937, 948, 953, 954,

955, 956, as amended (42 U.S.C. 2071, 2073,

2074, 2077, 2092–2095, 2111, 2112, 2133,

2134, 2139, 2139a, 2141, 2154–2158, 2201,

2231–2233, 2237, 2239); sec. 201, 88 Stat.

1242, as amended (42 U.S.C. 5841); sec. 5,

Pub. L. 101–575, 104 Stat. 2835 (42 U.S.C.

2243).
35602 Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations

Sections 110.1(b)(2) and 110.1(b)(3) also

issued under Pub. L. 96–92, 93 Stat. 710 (22

U.S.C. 2403). Section 110.11 also issued

under sec. 122, 68 Stat. 939 (42 U.S.C. 2152)

and secs. 54c and 57d, 88 Stat. 473, 475 (42

U.S.C. 2074). Section 110.27 also issued

under sec. 309(a), Pub. L. 99–440. Section

110.50(b)(3) also issued under sec. 123, 92

Stat. 142 (42 U.S.C. 2153). Section 110.51

also issued under sec. 184, 68 Stat. 954, as

amended (42 U.S.C. 2234). Section 110.52

also issued under sec. 186, 68 Stat. 955 (42

U.S.C. 2236). Sections 110.80–110.113 also

issued under 5 U.S.C. 552, 554. Sections

110.130–110.135 also issued under 5 U.S.C.

553. Sections 110.2 and 110.42 (a)(9) also

issued under sec. 903, Pub. L. 102–496 (42

U.S.C. 2151 et seq.).

2. In § 110.1, paragraph (b)(2) is

revised, paragraphs (b)(3) and (b)(4) are

redesignated as paragraphs (b)(4) and

(b)(5), the redesignated paragraph (b)(4)

is revised, and a new paragraph (b)(3) is

added to read as follows:

§ 110.1 Purpose and scope.

* * * * *

(b) * * *

(2) Persons who export or import U.S.

Munitions List nuclear items, such as

uranium depleted in the isotope-235

and incorporated in defense articles.

These persons are subject to the controls

of the Department of State pursuant to

22 CFR 120–130 ‘‘International Traffic

in Arms Regulations’’ (ITAR), under the

Arms Export Control Act, as authorized

by section 110 of the International

Security and Development Cooperation

Act of 1980;

(3) Persons who export uranium

depleted in the isotope-235 and

incorporated in commodities solely to

take advantage of high density or

pyrophoric characteristics. These

persons are subject to the controls of the

Department of Commerce under the

Export Administration Act, as

authorized by section 110 of the

International Security and Development

Cooperation Act of 1980;

(4) Persons who export nuclear

referral list commodities. These persons

are subject to the licensing authority of

the Department of Commerce pursuant

to 15 CFR part 799, such as bulk

zirconium, rotor and bellows

equipment, maraging steel, nuclear

reactor related equipment, including

process control systems and simulators;

and

* * * * *

3. In § 110.2, a definition for

Conversion facility is added in

alphabetical order to read as follows:

§ 110.2 Definitions.

* * * * *

Conversion facility means any facility

for the transformation from one uranium

chemical species to another, including:

conversion of uranium ore concentrates

to UO3, conversion of UO3 to UO2,

conversion of uranium oxides to UF4 or

UF6, conversion of UF4 to UF6,

conversion of UF6 to UF4, conversion of

UF4 to uranium metal, and conversion

of uranium fluorides to UO2.

* * * * *

4. Section 110.8 is revised to read as

follows:

§ 110.8 List of nuclear facilities and

equipment under NRC export licensing

authority.

(a) Nuclear reactors and especially

designed or prepared equipment and

components for nuclear reactors. (See

appendix A to this part.)

(b) Plants for the separation of

isotopes of uranium (source material or

special nuclear material) including gas

centrifuge plants, gaseous diffusion

plants, aerodynamic enrichment plants,

chemical exchange or ion exchange

enrichment plants, laser based

enrichment plants, plasma separation

enrichment plants, electromagnetic

enrichment plants, and especially

designed or prepared equipment, other

than analytical instruments, for the

separation of isotopes of uranium. (See

appendices to this part for lists of: gas

centrifuge equipment—Appendix B;

gaseous diffusion equipment—

Appendix C; aerodynamic enrichment

equipment—Appendix D; chemical

exchange or ion exchange enrichment

equipment—Appendix E; laser based

enrichment equipment—Appendix F;

plasma separation enrichment

equipment—Appendix G; and

electromagnetic enrichment

equipment—Appendix H.)

(c) Plants for the separation of the

isotopes of lithium and especially

designed or prepared assemblies and

components for these plants.

(d) Plants for the reprocessing of

irradiated nuclear reactor fuel elements

and especially designed or prepared

assemblies and components for these

plants. (See Appendix I to this part.)

(e) Plants for the fabrication of nuclear

reactor fuel elements and especially

designed or prepared assemblies and

components for these plants.

(f) Plants for the conversion of

uranium and especially designed or

prepared assemblies and components

for these plants. (See Appendix J to this

part.)

(g) Plants for the production,

separation, or purification of heavy

water, deuterium, and deuterium

compounds and especially designed or

prepared assemblies and components

for these plants. (See Appendix K to this

part.)

(h) Other nuclear-related commodities

are under the export licensing authority

of the Department of Commerce.

§ 110.22 [Amended]

5. In § 110.22(c), remove the word

‘‘not’’ where it appears between

‘‘country’’ and ‘‘listed.’’

§ 110.23 [Amended]

6. In § 110.23, paragraph (a)(1),

‘‘Appendix F’’ is revised to read

‘‘Appendix L.’’

§ 110.26 [Amended]

7. In § 110.26, paragraph (a)(2) is

amended by adding ‘‘Austria’’ and

‘‘Finland’’ in alphabetical order.

8. In § 110.27, paragraph (d) is revised

to read as follows:

§ 110.27 General license for imports.

* * * * *

(d) A person importing formula

quantities of strategic special nuclear

material (as defined in § 73.2 of this

chapter) under this general license shall

provide the notifications required by

§ 73.27 and § 73.72 of this chapter.

§ 110.28 [Amended]

9. Section 110.28 is amended by

removing ‘‘Cambodia’’ and ‘‘Vietnam.’’

§ 110.29 [Amended]

10. Section 110.29 is amended by

removing ‘‘Algeria,’’ ‘‘Comoros,’’

‘‘Guyana,’’ ‘‘Mauritania,’’ ‘‘Niger,’’ ‘‘St.

Kitts,’’ ‘‘United Arab Emirates,’’

‘‘Vanuatu,’’ and ‘‘Yemen Arab

Republic.’’

§ 110.30 [Amended]

11. Section 110.30 is amended by

adding ‘‘Brazil,’’ ‘‘New Zealand,’’

‘‘Republic of Korea,’’ ‘‘South Africa,’’

and ‘‘Ukraine’’ in alphabetical order.

§ 110.41 [Amended]

12. In § 110.41, paragraph (a)(4) is

revised to read as follows:

(a) * * *

(4) One kilogram or more of source or

special nuclear material to be exported

under the US-IAEA Agreement for

Cooperation.

* * * * *

13. In § 110.44, paragraph (b)(2),

‘‘Appendix G’’ is revised to read

‘‘Appendix M.’’

Appendix A to Part 110 [Amended]

14. In Appendix A to Part 110,

paragraph (9), remove the word

‘‘specially’’ and add in its place the

word ‘‘especially.’’

15. In Appendix B to Part 110,

paragraph (c) of the Footnote to section

1 is revised and paragraphs (e) and (f)

are added to section 1.2 to read as

follows:
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35603

Footnote

The materials used for centrifuge rotating

components are:

* * * * *

(c) Filamentary materials suitable for use in

composite structures and having a specific

modulus of 3.18 x 106 m or greater and a

specific ultimate tensile strength of 7.62 ×

104 m or greater.

(‘‘Specific Modulus’’ is the Young’s modulus

in N/m 2 divided by the specific weight in N/

m 3 when measured at a temperature of

23±20C and a relative humidity of 50±5%.

‘‘Specific tensile strength’’ is the ultimate

tensile strength in N/m 2 divided by the

specific weight in N/m 3 when measured at

a temperature of 23±20C and a relative

humidity of 50±5%.)

* * * * *

1.2 Static Components.

* * * * *

(e) Centrifuge housing/recipients:

Components especially designed or prepared

to contain the rotor tube assembly of a gas

centrifuge. The housing consists of a rigid

cylinder of wall thickness up to 30 mm

(1.2in) with precision machined ends to

locate the bearings and with one or more

flanges for mounting. The machined ends are

parallel to each other and perpendicular to

the cylinder’s longitudinal axis to within

0.05 degrees or less. The housing may also

be a honeycomb type structure to

accommodate several rotor tubes. The

housings are made of or protected by

materials resistant to corrosion by UF6.

(f) Scoops: Especially designed or prepared

tubes of up to 12 mm (0.5in) internal

diameter for the extraction of UF6 gas from

within the rotor tube by a Pitot tube action

(that is, with an aperture facing into the

circumferential gas flow within the rotor

tube, for example by bending the end of a

radially disposed tube) and capable of being

fixed to the central gas extraction system.

The tubes are made of or protected by

materials resistant to corrosion by UF6.

* * * * *

Appendices D, E, F, and G to Part 110

[Redesignated as Appendice I, K

through M of Part 110]

16. Appendix D to Part 110 is

redesignated Appendix I to Part 110 and

Appendices E through G to Part 110 are

redesignated as Appendices K through

M to Part 110.

17. A new Appendix D to Part 110 is

added to read as follows:

Appendix D to Part 110—Illustrative List of

Aerodynamic Enrichment Plant Equipment

and Components Under NRC Export

Licensing Authority

Note—In aerodynamic enrichment

processes, a mixture of gaseous UF6 and light

gas (hydrogen or helium) is compressed and

then passed through separating elements

wherein isotopic separation is accomplished

by the generation of high centrifugal forces

over a curved-wall geometry. Two processes

of this type have been successfully

developed: the separation nozzle process and

the vortex tube process. For both processes

the main components of a separation stage

included cylindrical vessels housing the

special separation elements (nozzles or

vortex tubes), gas compressors and heat

exchangers to remove the heat of

compression. An aerodynamic plant requires

a number of these stages, so that quantities

can provide an important indication of end

use. Because aerodynamic processes use

UF6, all equipment, pipeline and

instrumentation surfaces (that come in

contact with the gas) must be made of

materials that remain stable in contact with

UF6. All surfaces which come into contact

with the process gas are made of or protected

by UF6-resistant materials; including copper,

stainless steel, aluminum, aluminum alloys,

nickel or alloys containing 60% or more

nickel and UF6-resistant fully fluorinated

hydrocarbon polymers.

The following items either come into direct

contact with the UF6 process gas or directly

control the flow within the cascade:

(1) Separation nozzles and assemblies.

Especially designed or prepared nozzles

that consist of slit-shaped, curved channels

having a radius of curvature less than 1 mm

(typically 0.1 to 0.05 mm). The nozzles are

resistant to UF6 corrosion and have a knifeedge within the nozzle that separates the gas

flowing through the nozzle into two

fractions.

(2) Vortex tubes and assemblies.

Especially designed or prepared vortex

tubes that are cylindrical or tapered, made of

or protected by materials resistant to UF6

corrosion, have a diameter of between 0.5 cm

and 4 cm, a length to diameter ratio of 20:1

or less and with one or more tangential

inlets. The tubes may be equipped with

nozzle-type appendages at either or both

ends.

The feed gas enters the vortex tube

tangentially at one end or through swirl

vanes or at numerous tangential positions

along the periphery of the tube.

(3) Compressors and gas blowers.

Especially designed or prepared axial,

centrifugal, or positive displacement

compressors or gas blowers made of or

protected by materials resistant to UF6

corrosion and with a suction volume capacity

of 2 m 3/min or more of UF6/carrier gas

(hydrogen or helium) mixture. These

compressors and gas blowers typically have

a pressure ratio between 1.2:1 and 6:1.

(4) Rotary shaft seals.

Especially designed or prepared seals, with

seal feed and seal exhaust connections, for

sealing the shaft connecting the compressor

rotor or the gas blower rotor with the driver

motor to ensure a reliable seal against outleakage of process gas or in-leakage of air or

seal gas into the inner chamber of the

compressor or gas blower which is filled with

a UF6/carrier gas mixture.

(5) Heat exchangers for gas cooling.

Especially designed or prepared heat

exchangers, made of or protected by

materials resistant to UF6 corrosion.

(6) Separation element housings.

Especially designed or prepared separation

element housings, made of or protected by

materials resistant to UF6 corrosion, for

containing vortex tubes or separation

nozzles.

These housings may be cylindrical vessels

greater than 300 mm in diameter and greater

than 900 mm in length, or may be rectangular

vessels of comparable dimensions, and may

be designed for horizonal or vertical

installation.

(7) Feed systems/product and tails

withdrawal systems.

Especially designed or prepared process

systems or equipment for enrichment plants

made of or protected by materials resistant to

UF6 corrosion, including:

(i) Feed autoclaves, ovens, or systems used

for passing UF6 to the enrichment process;

(ii) Desublimers (or cold traps) used to

remove UF6 from the enrichment process for

subsequent transfer upon heating;

(iii) Solidification or liquefaction stations

used to remove UF6 from the enrichment

process by compressing and converting UF6

to a liquid or solid form; and

(iv) ‘‘Product’’ or ‘‘tails’’ stations used for

transferring UF6 into containers.

(8) Header piping systems.

Especially designed or prepared header

piping systems, made of or protected by

materials resistant to UF6 corrosion, for

handling UF6 within the aerodynamic

cascades.

The piping network is normally of the

‘‘double’’ header design with each stage or

group of stages connected to each of the

headers.

(9) Vacuum systems and pumps.

Especially designed or prepared vacuum

systems having a suction capacity of 5 m3/

min or more, consisting of vacuum

manifolds, vacuum headers and vacuum

pumps, and designed for service in UF6-

bearing atmospheres.

Especially designed or prepared vacuum

pumps for service in UF6-bearing

atmospheres and made of or protected by

materials resistant to UF6 corrosion. These

pumps may use fluorocarbon seals and

special working fluids.

(10) Special shut-off and control valves.

Especially designed or prepared manual or

automated shut-off and control bellows

valves made of or protected by materials

resistant to UF6 corrosion with a diameter of

40 to 1500 mm for installation in main and

auxiliary systems of aerodynamic enrichment

plants.

(11) UF6 mass spectrometers/ion sources.

Especially designed or prepared magnetic

or quadrupole mass spectrometers capable of

taking ‘‘on-line’’ samples of feed, ‘‘product’’

or ‘‘tails’’, from UF6 gas streams and having

all of the following characteristics:

(i) Unit resolution for mass greater than

320;

(ii) Ion sources constructed of or lined with

nichrome or monel or nickel plated;

(iii) Electron bombardment ionization

sources; and

(iv) Collector system suitable for isotopic

analysis.

(12) UF6/carrier gas separation systems.

Especially designed or prepared process

systems for separating UF6 from carrier gas

(hydrogen or helium).

These systems are designed to reduce the

UF6 content in the carrier gas to 1 ppm or

less and may incorporate equipment such as:
35604 Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations

(i) Cryogenic heat exchangers and

cryoseparators capable of temperatures of

¥120°C or less;

(ii) Cryogenic refrigeration units capable of

temperatures of ¥120°C or less;

(iii) Separation nozzle or vortex tube units

for the separation of UF6 from carrier gas; or

(iv) UF6 cold traps capable of temperatures

of ¥20°C or less.

18. A new Appendix E to Part 110 is

added to read as follows:

Appendix E to Part 110—Illustrative List of

Chemical Exchange or Ion Exchange

Enrichment Plant Equipment and

Components Under NRC Export Licensing

Authority

Note—The slight difference in mass

between the isotopes of uranium causes

small changes in chemical reaction equilibria

that can be used as a basis for separation of

the isotopes. Two processes have been

successfully developed: liquid-liquid

chemical exchange and solid-liquid ion

exchange.

A. In the liquid-liquid chemical exchange

process, immiscible liquid phases (aqueous

and organic) are countercurrently contacted

to give the cascading effect of thousands of

separation stages. The aqueous phase

consists of uranium chloride in hydrochloric

acid solution; the organic phase consists of

an extractant containing uranium chloride in

an organic solvent. The contactors employed

in the separation cascade can be liquid-liquid

exchange columns (such as pulsed columns

with sieve plates) or liquid centrifugal

contactors. Chemical conversions (oxidation

and reduction) are required at both ends of

the separation cascade in order to provide for

the reflux requirements at each end. A major

design concern is to avoid contamination of

the process streams with certain metal ions.

Plastic, plastic-lined (including use of

fluorocarbon polymers) and/or glass-lined

columns and piping are therefore used.

(1) Liquid-liquid exchange columns.

Countercurrent liquid-liquid exchange

columns having mechanical power input

(i.e., pulsed columns with sieve plates,

reciprocating plate columns, and columns

with internal turbine mixers), especially

designed or prepared for uranium

enrichment using the chemical exchange

process. For corrosion resistance to

concentrated hydrochloric acid solutions,

these columns and their internals are made

of or protected by suitable plastic materials

(such as fluorocarbon polymers) or glass. The

stage residence time of the columns is

designed to be short (30 seconds or less).

(2) Liquid-liquid centrifugal contactors.

Especially designed or prepared for

uranium enrichment using the chemical

exchange process. These contactors use

rotation to achieve dispersion of the organic

and aqueous streams and then centrifugal

force to separate the phases. For corrosion

resistance to concentrated hydrochloric acid

solutions, the contactors are made of or are

lined with suitable plastic materials (such as

fluorocarbon polymers) or are lined with

glass. The stage residence time of the

centrifugal contactors is designed to be short

(30 seconds or less).

(3) Uranium reduction systems and

equipment.

(i) Especially designed or prepared

electrochemical reduction cells to reduce

uranium from one valence state to another for

uranium enrichment using the chemical

exchange process. The cell materials in

contact with process solutions must be

corrosion resistant to concentrated

hydrochloric acid solutions.

The cell cathodic compartment must be

designed to prevent re-oxidation of uranium

to its higher valence state. To keep the

uranium in the cathodic compartment, the

cell may have an impervious diaphragm

membrane constructed of special cation

exchange material. The cathode consists of a

suitable solid conductor such as graphite.

These systems consist of solvent extraction

equipment for stripping the U+4 from the

organic stream into an aqueous solution,

evaporation and/or other equipment to

accomplish solution pH adjustment and

control, and pumps or other transfer devices

for feeding to the electrochemical reduction

cells. A major design concern is to avoid

contamination of the aqueous stream with

certain metal ions. For those parts in contact

with the process stream, the system is

constructed of equipment made of or

protected by materials such as glass,

fluorocarbon polymers, polyphenyl sulfate,

polyether sulfone, and resin-impregnated

graphite.

(ii) Especially designed or prepared

systems at the product end of the cascade for

taking the U+4 out of the organic stream,

adjusting the acid concentration and feeding

to the electrochemical reduction cells.

These systems consist of solvent extraction

equipment for stripping the U+4 from the

organic stream into an aqueous solution,

evaporation and/or other equipment to

accomplish solution pH adjustment and

control, and pumps or other transfer devices

for feeding to the electrochemical reduction

cells. A major design concern is to avoid

contamination of the aqueous stream with

certain metal ions. For those parts in contact

with the process stream, the system is

constructed of equipment made of or

protected by materials such as glass,

fluorocarbon polymers, polyphenyl sulfate,

polyether sulfone, and resin-impregnated

graphite.

(4) Feed preparation systems.

Especially designed or prepared systems

for producing high-purity uranium chloride

feed solutions for chemical exchange

uranium isotope separation plants.

These systems consist of dissolution,

solvent extraction and/or ion exchange

equipment for purification and electrolytic

cells for reducing the uranium U+6 or U+4

to U+3. These systems produce uranium

chloride solutions having only a few parts

per million of metallic impurities such as

chromium, iron, vanadium, molybdenum

and other bivalent or higher multi-valent

cations. Materials of construction for portions

of the system processing high-purity U+3

include glass, fluorocarbon polymers,

polyphenyl sulfate or polyether sulfone

plastic-lined and resin-impregnated graphite.

(5) Uranium oxidation systems.

Especially designed or prepared systems

for oxidation of U+3 to U+4 for return to the

uranium isotope separation cascade in the

chemical exchange enrichment process.

These systems may incorporate equipment

such as:

(i) Equipment for contacting chlorine and

oxygen with the aqueous effluent from the

isotope separation equipment and extracting

the resultant U+4 into the stripped organic

stream returning from the product end of the

cascade; and

(ii) Equipment that separates water from

hydrochloric acid so that the water and the

concentrated hydrochloric acid may be

reintroduced to the process at the proper

locations.

B. In the solid-liquid ion-exchange process,

enrichment is accomplished by uranium

adsorption/desorption on a special, fastacting, ion-exchange resin or adsorbent. A

solution of uranium in hydrochloric acid and

other chemical agents is passed through

cylindrical enrichment columns containing

packed beds of the adsorbent. For a

continuous process, a reflux system is

necessary to release the uranium from the

adsorbent back in the liquid flow so that

‘‘product’’ and ‘‘tails’’ can be collected. This

is accomplished with the use of suitable

reduction/oxidation chemical agents that are

fully regenerated in separate external circuits

and that may be partially regenerated within

the isotopic separation columns themselves.

The presence of hot concentrated

hydrochloric acid solutions in the process

requires that the equipment be made of or

protected by special corrosion-resistant

materials.

(1) Fast reacting ion exchange resins/

adsorbents.

Especially designed or prepared for

uranium enrichment using the ion exchange

process, including porous macroreticular

resins, and/or pellicular structures in which

the active chemical exchange groups are

limited to a coating on the surface of an

inactive porous support structure, and other

composite structures in any suitable form

including particles or fibers. These ion

exchange resins/adsorbents have diameters of

0.2 mm or less and must be chemically

resistant to concentrated hydrochloric acid

solutions as well as physically strong enough

so as not to degrade in the exchange

columns. The resins/adsorbents are

especially designed to achieve very fast

uranium isotope exchange kinetics (exchange

rate half-time of less than 10 seconds) and are

capable of operating at a temperature in the

range of 100°C to 200°C.

(2) Ion exchange columns.

Cylindrical columns greater than 1000 mm

in diameter for containing and supporting

packed beds of ion exchange resin/adsorbent,

especially designed or prepared for uranium

enrichment using the ion exchange process.

These columns are made of or protected by

materials (such as titanium or fluorocarbon

plastics) resistant to corrosion by

concentrated hydrochloric acid solutions and

are capable of operating at a temperature in

the range of 100°C to 200°C and pressures

above 0.7 MPa (102 psia).

(3) Ion exchange reflux systems.

(i) Especially designed or prepared

chemical or electrochemical reduction

systems for regeneration of the chemical
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35605

reducing agent(s) used in ion exchange

uranium enrichment cascades.

The ion exchange enrichment process may

use, for example, trivalent titanium (Ti+3) as

a reducing cation in which case the reduction

system would regenerate Ti+3 by reducing

Ti+4.

(ii) Especially designed or prepared

chemical or electrochemical oxidation

systems for regeneration of the chemical

oxidizing agent(s) used in ion exchange

uranium enrichment cascades.

The ion exchange enrichment process may

use, for example, trivalent iron (Fe+3) as an

oxidant in which case the oxidation system

would regenerate Fe+3 by oxidizing Fe+2.

19. A new Appendix F to Part 110 is

added to read as follows:

Appendix F to Part 110—Illustrative List of

Laser-Based Enrichment Plant Equipment

and Components Under NRC Export

Licensing Authority

Note—Present systems for enrichment

processes using lasers fall into two

categories: the process medium is atomic

uranium vapor and the process medium is

the vapor of a uranium compound. Common

nomenclature for these processes include:

first category-atomic vapor laser isotope

separation (AVLIS or SILVA); second

category-molecular laser isotope separation

(MLIS or MOLIS) and chemical reaction by

isotope selective laser activation (CRISLA).

The systems, equipment and components for

laser enrichment plants include: (a) Devices

to feed uranium-metal vapor for selective

photo-ionization or devices to feed the vapor

of a uranium compound for photodissociation or chemical activation; (b)

devices to collect enriched and depleted

uranium metal as ‘‘product’’ and ‘‘tails’’ in

the first category, and devices to collect

dissociated or reacted compounds as

‘‘product’’ and unaffected material as ’tails’

in the second category; (c) process laser

systems to selectively excite the uranium-235

species; and (d) feed preparation and product

conversion equipment. The complexity of the

spectroscopy of uranium atoms and

compounds may require incorporation of a

number of available laser technologies.

All surfaces that come into contact with

the uranium or UF6 are wholly made of or

protected by corrosion-resistant materials.

For laser-based enrichment items, the

materials resistant to corrosion by the vapor

or liquid of uranium metal or uranium alloys

include yttria-coated graphite and tantalum;

and the materials resistant to corrosion by

UF6 include copper, stainless steel,

aluminum, aluminum alloys, nickel or alloys

containing 60% or more nickel and UF6-

resistant fully fluorinated hydrocarbon

polymers.

Many of the following items come into

direct contact with uranium metal vapor or

liquid or with process gas consisting of UF6

or a mixture of UF6 and other gases:

(1) Uranium vaporization systems (AVLIS).

Especially designed or prepared uranium

vaporization systems that contain high-power

strip or scanning electron beam guns with a

delivered power on the target of more than

2.5 kW/cm.

(2) Liquid uranium metal handling systems

(AVLIS).

Especially designed or prepared liquid

metal handling systems for molten uranium

or uranium alloys, consisting of crucibles and

cooling equipment for the crucibles.

The crucibles and other system parts that

come into contact with molten uranium or

uranium alloys are made of or protected by

materials of suitable corrosion and heat

resistance, such as tantalum, yttria-coated

graphite, graphite coated with other rare

earth oxides or mixtures thereof.

(3) Uranium metal ‘‘product’’ and ‘‘tails’’

collector assemblies (AVLIS).

Especially designed or prepared ‘‘product’’

and ‘‘tails’’ collector assemblies for uranium

metal in liquid or solid form.

Components for these assemblies are made

of or protected by materials resistant to the

heat and corrosion of uranium metal vapor or

liquid, such as yttria-coated graphite or

tantalum, and may include pipes, valves,

fittings, ‘‘gutters’’, feed-throughs, heat

exchangers and collector plates for magnetic,

electrostatic or other separation methods.

(4) Separator module housings (AVLIS).

Especially designed or prepared cylindrical

or rectangular vessels for containing the

uranium metal vapor source, the electron

beam gun, and the ‘‘product’’ and ‘‘tails’’

collectors.

These housings have multiplicity of ports

for electrical and water feed-throughs, laser

beam windows, vacuum pump connections

and instrumentation diagnostics and

monitoring with opening and closure

provisions to allow refurbishment of internal

components.

(5) Supersonic expansion nozzles (MLIS).

Especially designed or prepared supersonic

expansion nozzles for cooling mixtures of

UF6 and carrier gas to 150 K or less which

are corrosion resistant to UF6.

(6) Uranium pentafluoride product

collectors (MLIS).

Especially designed or prepared uranium

pentafluoride (UF5) solid product collectors

consisting of filter, impact, or cyclone-type

collectors, or combinations thereof, which

are corrosion resistant to the UF5/UF6

environment.

(7) UF6/carrier gas compressors (MLIS).

Especially designed or prepared

compressors for UF6/carrier gas mixtures,

designed for long term operation in a UF6

environment. Components of these

compressors that come into contact with

process gas are made of or protected by

materials resistant to UF6 corrosion.

(8) Rotary shaft seals (MLIS).

Especially designed or prepared rotary

shaft seals, with seal feed and seal exhaust

connections, for sealing the shaft connecting

the compressor rotor with the driver motor to

ensure a reliable seal against out-leakage of

process gas or in-leakage of air or seal gas

into the inner chamber of the compressor

which is filled with a UF6/carrier gas

mixture.

(9) Fluorination systems (MLIS).

Especially designed or prepared systems

for fluorinating UF5 (solid) to UF6 (gas).

These systems are designed to fluorinate

the collected UF5 powder to UF6 for

subsequent collection in product containers

or for transfer as feed to MLIS units for

additional enrichment. In one approach, the

fluorination reaction may be accomplished

within the isotope separation system to react

and recover directly off the ‘‘product’’

collectors. In another approach, the UF5

powder may be removed/transferred from the

‘‘product’’ collectors into a suitable reaction

vessel (e.g., fluidized-bed reactor, screw

reactor or flame tower) for fluorination. In

both approaches equipment is used for

storage and transfer of fluorine (or other

suitable fluorinating agents) and for

collection and transfer of UF6.

(10) UF6 mass spectrometers/ion sources

(MLIS).

Especially designed or prepared magnetic

or quadrupole mass spectrometers capable of

taking ‘‘on-line’’ samples of feed, ‘‘product’’

or ‘‘tails’’, from UF6 gas streams and having

all of the following characteristics:

(i) Unit resolution for mass greater than

320;

(ii) Ion sources constructed of or lined with

nichrome or monel or nickel plated;

(iii) Electron bombardment ionization

sources; and

(iv) Collector system suitable for isotopic

analysis.

(11) Feed systems/product and tails

withdrawal systems (MLIS).

Especially designed or prepared process

systems or equipment for enrichment plants

made of or protected by materials resistant to

corrosion by UF6, including:

(i) Feed autoclaves, ovens, or systems used

for passing UF6 to the enrichment process;

(ii) Desublimers (or cold traps) used to

remove UF6 from the enrichment process for

subsequent transfer upon heating;

(iii) Solidification or liquefaction stations

used to remove UF6 from the enrichment

process by compressing and converting UF6

to a liquid or solid; and

(iv) ‘‘Product’’ or ‘‘tails’’ stations used to

transfer UF6 into containers.

(12) UF6/carrier gas separation systems

(MLIS).

Especially designed or prepared process

systems for separating UF6 from carrier gas.

The carrier gas may be nitrogen, argon, or

other gas.

These systems may incorporate equipment

such as:

(i) Cryogenic heat exchangers or

cryoseparators capable of temperatures of

¥120°C or less;

(ii) Cryogenic refrigeration units capable of

temperatures of ¥120°C or less; or

(iii) UF6 cold traps capable of temperatures

of ¥20°C or less.

(13) Lasers or Laser systems (AVLIS, MLIS

and CRISLA).

Especially designed or prepared for the

separation of uranium isotopes. The laser

system for the AVLIS process usually

consists of two lasers: a copper vapor laser

and a dye laser. The laser system for MLIS

usually consists of a CO2 or excimer laser and

a multi-pass optical cell with revolving

mirrors at both ends. Lasers or laser systems

for both processes require a spectrum

frequency stabilizer for operation over

extended periods.

20. A new Appendix G to Part 110 is

added to read as follows:
35606 Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations

Appendix G to Part 110—Illustrative List of

Plasma Separation Enrichment Plant

Equipment and Components Under NRC

Export Licensing Authority

Note—In the plasma separation process, a

plasma of uranium ions passes through an

electric field tuned to the 235U ion resonance

frequency so that they preferentially absorb

energy and increase the diameter of their

corkscrew-like orbits. Ions with a largediameter path are trapped to produce a

product enriched in 235U. The plasma, made

by ionizing uranium vapor, is contained in a

vacuum chamber with a high-strength

magnetic field produced by a

superconducting magnet. The main

technological systems of the process include

the uranium plasma generation system, the

separator module with superconducting

magnet, and metal removal systems for the

collection of ‘‘product’’ and ‘‘tails’’.

(1) Microwave power sources and

antennae.

Especially designed or prepared

microwave power sources and antennae for

producing or accelerating ions having the

following characteristics: greater than 30 GHz

frequency and greater than 50 kW mean

power output for ion production.

(2) Ion excitation coils.

Especially designed or prepared radio

frequency ion excitation coils for frequencies

of more than 100 kHz and capable of

handling more than 40 kW mean power.

(3) Uranium plasma generation systems.

Especially designed or prepared systems

for the generation of uranium plasma, which

may contain high power strip or scanning

electron beam guns with a delivered power

on the target of more than 2.5 kW/cm.

(4) Liquid uranium metal handling

systems.

Especially designed or prepared liquid

metal handling systems for molten uranium

or uranium alloys, consisting of crucible and

cooling equipment for the crucibles.

The crucibles and other system parts that

come into contact with molten uranium or

uranium alloys are made of or protected by

corrosion and heat resistance materials, such

as tantalum, yttria-coated graphite, graphite

coated with other rare earth oxides or

mixtures thereof.

(5) Uranium metal ‘‘product’’ and ‘‘tails’’

collector assemblies.

Especially designed or prepared ‘‘product’’

and ‘‘tails’’ collector assemblies for uranium

metal in solid form. These collector

assemblies are made of or protected by

materials resistant to the heat and corrosion

of uranium metal vapor, such as yttria-coated

graphite or tantalum.

(6) Separator module housings.

Especially designed or prepared cylindrical

vessels for use in plasma separation

enrichment plants for containing the

uranium plasma source, radio-frequency

drive coil and the ‘‘product’’ and ‘‘tails’’

collectors.

These housings have a multiplicity of ports

for electrical feed-throughs, diffusion pump

connections and instrumentation diagnostics

and monitoring. They have provisions for

opening and closure to allow for

refurbishment of internal components and

are constructed of a suitable non-magnetic

material such as stainless steel.

21. A new Appendix H to Part 110 is

added to read as follows:

Appendix H to Part 110—Illustrative List of

Electromagnetic Enrichment Plant

Equipment and Components Under NRC

Export Licensing Authority

Note—In the electromagnetic process,

uranium metal ions produced by ionization

of a salt feed material (typically UCL4) are

accelerated and passed through a magnetic

field that has the effect of causing the ions

of different isotopes to follow different paths.

The major components of an electromagnetic

isotope separator include: a magnetic field

for ion-beam diversion/separation of the

isotopes, an ion source with its acceleration

system, and a collection system for the

separated ions. Auxiliary systems for the

process include the magnet power supply

system, the ion source high-voltage power

supply system, the vacuum system, and

extensive chemical handling systems for

recovery of product and cleaning/recycling of

components.

(1) Electromagnetic isotope separators.

Especially designed or prepared for the

separation of uranium isotopes, and

equipment and components therefor,

including:

(i) Ion Sources—especially designed or

prepared single or multiple uranium ion

sources consisting of a vapor source, ionizer,

and beam accelerator, constructed of

materials such as graphite, stainless steel, or

copper, and capable of providing a total ion

beam current of 50 mA or greater;

(ii) Ion collectors—collector plates

consisting of two or more slits and pockets

especially designed or prepared for collection

of enriched and depleted uranium ion beams

and constructed of materials such as graphite

or stainless steel;

(iii) Vacuum housings—especially

designed or prepared vacuum housings for

uranium electromagnetic separators,

constructed of suitable non-magnetic

materials such as stainless steel and designed

for operation at pressures of 0.1 Pa or lower.

The housings are specially designed to

contain the ion sources, collector plates and

water-cooled liners and have provision for

diffusion pump connections and opening and

closure for removal and reinstallation of

these components; and

(iv) Magnet pole pieces—especially

designed or prepared magnet pole pieces

having a diameter greater than 2 m used to

maintain a constant magnetic field within an

electromagnetic isotope separator and to

transfer the magnetic field between adjoining

separators.

(2) High voltage power supplies.

Especially designed or prepared highvoltage power supplies for ion sources,

having all of the following characteristics:

(i) Capable of continuous operation;

(ii) Output voltage of 20,000 V or greater;

(iii) Output current of 1 A or greater; and

(iv) Voltage regulation of better than 0.01%

over an 8 hour time period.

(3) Magnet power supplies.

Especially designed or prepared highpower, direct current magnet power supplies

having all of the following characteristics:

(i) Capable of continuously producing a

current output of 500 A or greater at a voltage

of 100 V or greater; and

(ii) A current or voltage regulation better

than 0.01% over an 8 hour time period.

22. A new Appendix J to Part 110 is

added to read as follows:

Appendix J to Part 110—Illustrative List of

Uranium Conversion Plant Equipment

Under NRC Export Licensing Authority

Note—Uranium conversion plants and

systems may perform one or more

transformations from one uranium chemical

species to another, including: conversion of

uranium ore concentrates to UO3, conversion

of UO3 to UO2, conversion of uranium

oxides to UF4 or UF6, conversion of UF4 to

UF6, conversion of UF6 to UF4, conversion

of UF4 to uranium metal, and conversion of

uranium fluorides to UO2. Many key

equipment items for uranium conversion

plants are common to several segments of the

chemical process industry, including

furnaces, rotary kilns, fluidized bed reactors,

flame tower reactors, liquid centrifuges,

distillation columns and liquid-liquid

extraction columns. However, few of the

items are available ‘‘off-the-shelf’’; most

would be prepared according to customer

requirements and specifications. Some

require special design and construction

considerations to address the corrosive

properties of the chemicals handled (HF, F2,

CLF3, and uranium fluorides). In all of the

uranium conversion processes, equipment

which individually is not especially designed

or prepared for uranium conversion can be

assembled into systems which are especially

designed or prepared for uranium

conversion.

(1) Especially designed or prepared

systems for the conversion of uranium ore

concentrates to UO3.

Conversion of uranium ore concentrates to

UO3 can be performed by first dissolving the

ore in nitric acid and extracting purified

uranyl nitrate using a solvent such as tributyl

phosphate. Next, the uranyl nitrate is

converted to UO3 either by concentration

and denitration or by neutralization with

gaseous ammonia to product ammonium

diuranate with subsequent filtering, drying,

and calcining.

(2) Especially designed or prepared

systems for the conversion of UO3 to UF6.

Conversion of UO3 to UF6 can be

performed directly by fluorination. The

process requires a source of fluorine gas or

chlorine trifluoride.

(3) Especially Designed or Prepared

Systems for the conversion of UO3 to UO2.

Conversion of UO3 to UO2 can be

performed through reduction of UO3 with

cracked ammonia gas or hydrogen.

(4) Especially Designed or Prepared

Systems for the conversion of UO2 to UF4.

Conversion of UO2 to UF4 can be

performed by reacting UO2 with hydrogen

fluoride gas (HF) at 300–500°C.

(5) Especially Designed or Prepared

Systems for the conversion of UF4 to UF6.
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35607

1 1992 Act, section 1313(b)(1) (12 U.S.C.

4513(b)(1)).

2 60 FR 7468, Feb. 8, 1995.

3 12 U.S.C. 4611.

4 61 FR 29592, Jun. 11, 1996.

5Section 1362 (12 U.S.C. 4612).

6 60 FR 30201.

Conversion of UF4 to UF6 is performed by

exothermic reaction with fluorine in a tower

reactor. UF6 is condensed from the hot

effluent gases by passing the effluent stream

through a cold trap cooled to -10°C. The

process requires a source of fluorine gas.

(6) Especially Designed or Prepared

Systems for the conversion of UF4 to U

metal.

Conversion of UF4 to U metal is performed

by reduction with magnesium (large batches)

or calcium (small batches). The reaction is

carried out at temperatures above the melting

point of uranium (1130°C).

(7) Especially designed or prepared

systems for the conversion of UF6 to UO2.

Conversion of UF6 to UO2 can be

performed by one of three processes. In the

first, UF6 is reduced and hydrolyzed to UO2

using hydrogen and steam. In the second,

UF6 is hydrolyzed by solution in water,

ammonia is added to precipitate ammonium

diuranate, and the diuranate is reduced to

UO2 with hydrogen at 820°C. In the third

process, gaseous UF6, CO2, and NH3 are

combined in water, precipitating ammonium

uranyl carbonate. The ammonium uranyl

carbonate is combined with steam and

hydrogen at 500–600°C to yield UO2. UF6 to

UO2 conversion is often performed as the

first stage of a fuel fabrication plant.

(8) Especially Designed or Prepared

Systems for the conversion of UF6 to UF4.

Conversion of UF6 to UF4 is performed by

reduction with hydrogen.

Appendix L to Part 110 [Amended]

23. In newly redesignated Appendix L

to Part 110, the entry ‘‘Tungsten 185 (W

85)’’ is revised to read ‘‘Tungsten 185

(W 185).’’

Dated in Rockville, MD, this 28th day of

June 1996.

For the Nuclear Regulatory Commission.

James M. Taylor,

Executive Director for Operations.

[FR Doc. 96–17236 Filed 7–5–96; 8:45 am]

BILLING CODE 7590–01–P

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

12 CFR Part 1750

RIN 2550–AA03

Office of Federal Housing Enterprise

Oversight; Minimum Capital

AGENCY: Office of Federal Housing

Enterprise Oversight, HUD.

ACTION: Final regulation.

SUMMARY: The Office of Federal Housing

Enterprise Oversight (OFHEO) is issuing

a final regulation that sets forth the

methodology for computing the

minimum capital requirement for the

Federal National Mortgage Association

(Fannie Mae) and the Federal Home

Loan Mortgage Corporation (Freddie

Mac) (collectively, the Enterprises). The

final regulation also establishes

procedures for the filing of quarterly

minimum capital reports by each

Enterprise. In addition, the final

regulation establishes procedures under

which OFHEO will determine the

capital classification of each Enterprise

on a quarterly basis.

EFFECTIVE DATE: August 7, 1996.

FOR FURTHER INFORMATION CONTACT: Gary

L. Norton, Deputy General Counsel

(202/414–3800); Isabella W. Sammons,

Associate General Counsel (202/414–

3800); Michael P. Scott, Assistant

Director, Office of Research, Analysis

and Capital Standards (202/414–3800),

1700 G Street, N.W., 4th Floor,

Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

I. Background

Title XIII of the Housing and

Community Development Act of 1992,

Pub. L. No. 102–550, known as the

Federal Housing Enterprises Financial

Safety and Soundness Act of 1992 (1992

Act), established OFHEO as an

independent office within the

Department of Housing and Urban

Development. OFHEO is responsible for

ensuring that the Enterprises are

adequately capitalized and operating in

a safe and sound manner. Included

among the express statutory authorities

of the Director of OFHEO is the

authority to issue regulations

establishing minimum and risk-based

capital standards.1

As a separate rulemaking procedure,

OFHEO published an Advance Notice of

Proposed Rulemaking (ANPR) 2 as the

first step toward developing the riskbased capital regulation required by

section 1361 of the 1992 Act.3 The riskbased capital regulation will specify a

stress test that will determine the

amount of capital that an Enterprise

must hold to maintain positive capital

throughout a 10-year period of

economic stress. That amount, plus an

additional 30 percent to cover

management and operations risk, will

constitute the risk-based capital

requirement of the Enterprise.

The ANPR solicited public comment

on a variety of issues concerning the

development of the risk-based capital

regulation. In light of the complex

issues, OFHEO decided to issue the

proposed risk-based capital regulation

in two Notices of Proposed Rulemaking

(NPRs).

The first NPR addresses two key

components of the stress test—the

‘‘benchmark loss experience’’ (the basis

for determining the extent of Enterprise

credit losses during the stress test) and

the use of the OFHEO House Price Index

(HPI) in the stress test to estimate

changes over time in the values of

single-family properties securing

Enterprise mortgages.4 A second NPR,

currently being developed, will address

the remaining aspects of the risk-based

capital stress test and how the stress test

will be used to determine the

Enterprises’ risk-based capital

requirements.

In addition to the risk-based capital

standard, the 1992 Act prescribes a

minimum capital standard for the

Enterprises.5 This final regulation

implements the minimum capital

standard of the 1992 Act. Unlike the

risk-based capital requirement that is

computed by applying the stress test,

the minimum capital requirement is

computed on the basis of capital ratios

that are applied to certain defined onbalance sheet assets and off-balance

sheet obligations of the Enterprises.

OFHEO issued a proposed Minimum

Capital regulation on June 8, 1995.6 As

discussed in the preamble to the

proposed regulation, the proposed

regulation contained the interim

administrative procedures with respect

to the methodology for computing the

minimum capital requirement for onand off-balance sheet items, except for

interest rate and foreign exchange rate

contracts for which the methodology

was modified. The proposed regulation

also established procedures for the filing

of minimum capital reports by the

Enterprises each quarter, or at other

times as required by the Director. The

proposed regulation further required

OFHEO to provide each Enterprise with

notice and opportunity to comment on

its proposed capital classification.

OFHEO received five comments in

response to the proposed regulation.

Comments were received from a federal

government agency (Office of Thrift

Supervision), both Enterprises, and two

trade associations (America’s

Community Bankers and Mortgage

Bankers Association of America).

OFHEO has carefully considered the

comments in developing the final

regulation. A discussion of the

comments received follows.

II. Comments on the Proposed

Minimum Capital Regulation

General Comments

Freddie Mac commented generally on

OFHEO’s role with respect to the