Source: http://www.nrc.gov/reading-rm/doc-collections/cfr/part074/full-text.html
Timestamp: 2014-03-11 20:17:44
Document Index: 567648258

Matched Legal Cases: ['art 74', 'ART 74', '§ 70', '§ 72', '§ 74', 'art 40', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 73', '§ 73', '§ 74', '§ 75', '§ 74', 'art 50', 'art 75', 'art 75', 'art\n75', '§ 74', '§ 74', '§ 74', '§ 74', 'art 75', 'art 75', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', 'art 75', '§ 74', '§ 74', 'art\n50', 'art 72', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', '§ 74', 'art 75', '§ 74', '§ 74', 'art 75', '§ 74', '§ 74', '§ 74', 'art 70', '§ 74', '§ 74', 'art 74', 'art 74', '§ 74']

NRC: 10 CFR Part 74—Material Control and Accounting of Special Nuclear Material
Print Home > NRC Library > Document Collections > NRC Regulations (10 CFR) > PART 74—MATERIAL CONTROL AND
ACCOUNTING OF SPECIAL NUCLEAR MATERIAL
74.8 Information collection requirements: OMB approval.
74.33 Nuclear material control and accounting for uranium enrichment facilities authorized to produce
special nuclear material of low strategic significance.
74.41 Nuclear material control and accounting for special nuclear material of moderate strategic
Authority: Atomic Energy Act secs. 53, 57, 161, 182, 183, 223, 234, 1701 (42 U.S.C. 2073, 2077, 2201, 2232, 2233,
2273, 2282, 2297f); Energy Reorganization Act secs. 201, 202, 206 (42 U.S.C. 5841, 5842, 5846); Government Paperwork Elimination Act sec.
[73 FR 32464, Jun. 9, 2008; 77 FR 39910, Jul. 6, 2012]
(b) The general conditions and procedures for the submittal of a license application for the activities covered in this part are detailed in § 70.22 of this chapter.
(a) The general reporting and recordkeeping requirements of subpart B of this part apply to each person licensed under this chapter who possesses special nuclear material in a quantity of one gram or more of contained uranium-235, uranium-233, or plutonium; or who transfers or receives a quantity of special nuclear material of one gram or more of contained uranium-235, uranium-233, or plutonium. The general reporting and recordkeeping requirements of subpart B of this part do not apply to licensees
whose MC&A reporting and recordkeeping requirements are covered by §§ 72.72, 72.76, and 72.78 of this chapter.
[50 FR 7579, Feb. 25, 1985, as amended at 56 FR 55998, Oct. 31, 1991; 59 FR 48960, Sept. 23, 1994; 67 FR 78144, Dec. 23, 2002; 73 FR 32463, Jun. 9, 2008]
Abrupt loss means a loss occurring in the time interval between consecutive sequential performances of a material control
test which is designed to detect anomalies potentially indicative of a loss of strategic special nuclear material from a
specific unit of SSNM (i.e., a quantity characterized by a unique measurement) introduced into a process.
Accessible location means a process location at which SSNM could be acquired without leaving evidence of the
acquisition, i.e., without tools or other equipment to obviously violate the integrity of the containment.
Active inventory means the sum of additions to inventory, beginning inventory, ending inventory, and removals from
inventory, after all common terms have been excluded. Common terms are any material values which appear in the active
inventory calculation more than once and come from the same measurement.
Additions to material in process means: (1) Receipts that are opened, except for receipts opened only for sampling and
subsequently maintained under tamper-safing; (2) opened sealed sources; and (3) material removed from process for
nonconformance with chemical or physical specifications that is subsequently reprocessed, measured for contained SSNM,
and reintroduced to process.
Alarm Threshold means a predetermined quantity of SSNM calculated from the specified probability of detection for a
given loss and the standard deviation associated with a material control test. An alarm threshold serves to trigger a response
Calibration means the process of determining the numerical relationship between the observed output of a measurement
system and the value, based upon reference standards, of the characteristic being measured.
Continuous process means a unit process in which feed material must be introduced in a systematic manner in order to
maintain equilibrium conditions.
Controlled access area means any temporarily or permanently established area which is clearly demarcated, access to
which is controlled, and which affords isolation of the material or persons within it.
(2) For uranium with an enrichment in the isotope U235 of 0.01 (1 percent) and above, its element weight in kilograms
multiplied by the square of its enrichment expressed as a decimal weight fraction; and
(3) For uranium with an enrichment in the isotope U235 below 0.01 (1 percent), its element weight in kilograms multiplied
by 0.0001.
Fissile isotope means: (1) Uranium U-233, or (2) uranium-235 by enrichment category, (3) plutonium-239, and (4)
plutonium-241.
Formula kilogram means SSNM in any combination in a quantity of 1000 grams computed by the formula, grams=(grams
contained U-235) + 2.5 (grams U-233 + grams plutonium).
Formula quantity means strategic special nuclear material in any combination in a quantity of 5,000 grams or more
computed by the formula, grams=(grams contained U235)+2.5 (grams U233+grams plutonium).
Government agency means any executive department, commission, independent establishment, corporation, wholly or
partly owned by the United States of America, which is an instrumentality of the United States, or any board, bureau,
Inventory difference (ID) means the arithmetic difference obtained by subtracting the quantity of SNM tabulated from a physical inventory from the book inventory quantity. Book inventory quantity is equivalent to the beginning inventory (BI) plus additions to inventory (A) minus removals from inventory (R), while the physical inventory quantity is the ending inventory (EI) for the material balance period in question (as physically determined). Thus mathematically, ID = (BI + A-R) -EI or ID = BI + A-R-EI
ID is sometimes also referred to as material unaccounted for (MUF) in this chapter.
Item means any discrete quantity or container of special nuclear material or source material, not undergoing processing,
having an unique identity and also having an assigned element and isotope quantity.
Material access area means any location which contains special nuclear material, within a vault or a building, the roof,
walls, and floor of which constitute a physical barrier.
MC&A alarm means a situation in which there is: (1) an out-of-location item or an item whose integrity has been violated,
(2) an indication of a flow of SSNM where there should be none, or (3) a difference between a measured or observed
amount or property of material and its corresponding predicted or property value that exceeds a threshold established to
provide the detection capability required by § 74.53.
Material control test means a comparison of a pre-established alarm threshold with the results of a process difference or
process yield performed on a unit process.
Material in process means any special nuclear material possessed by the licensee except in unopened receipts, sealed
sources, measured waste discards, and ultimate product maintained under tamper-safing.
Measurement includes sampling and means the determination of mass, volume, quantity, composition or other property of a
material where such determinations are used for special nuclear material control and accounting purposes.
Measurement system means all of the apparatus, equipment, instruments and procedures used in performing a
(1) Any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, Government
agency other than the Commission or the Department of Energy, except that the Department of Energy shall be considered
a person within the meaning of the regulations in this part to the extent that its facilities and activities are subject to the
licensing and related regulatory authority of the Commission pursuant to section 202 of the Energy Reorganization Act of
1974 (88 Stat. 1244), any state or any political subdivision of or any political entity within a state, any foreign government
or nation or political subdivision of any such government or nation, or other entity; and
Physical inventory means determination on a measured basis of the quantity of special nuclear material on hand at a given time. The methods of physical inventory and associated measurements will vary depending on the material to be inventoried and the process involved.	Plant means a set of processes or operations (on the same site, but not necessarily all in the same building) coordinated into a single manufacturing, R&D, or testing effort. A scrap recovery operation, or an analytical laboratory, serving both onsite and offsite customers (or more than one onsite manufacturing effort) should be treated as a separate plant.
Power of detection means the probability that the critical value of a statistical test will be exceeded when there is an actual
loss of a specific SSNM quantity.
Process difference (PD) means the determination of an ID on a unit process level with the additional qualification that
difficult to measure components may be modeled.
Process yield means the quantity of SSNM actually removed from a unit process compared with the quantity predicted
(based on a measured input) to be available for removal. Process yield differs from a process difference in that holdup and
sidestreams are not measured or modeled.
Produce when used in relation to special nuclear material, means: (1) To manufacture, make, produce, or refine special
nuclear material; (2) to separate special nuclear material from other substances in which such material may be contained; or
Reconciliation means the process of
evaluating and comparing licensee
reports required under this part to the
projected material balances generated by
the Nuclear Materials Management and
Safeguards System. This process is
considered complete when the licensee
resolves any differences between the
reported and projected balances,
including those listed for foreign
obligated materials.
Reference standard means a material, device, or instrument whose assigned value is known relative to national standards or
nationally accepted measurement systems. This is also commonly referred to as a traceable standard.
Research and development means: (1) Theoretical analysis, exploration, or experimentation; or (2) the extension of
investigative findings and theories of a scientific or technical nature into practical application for experimental and
demonstration purposes, including the experimental production and testing of models, devices, equipment, materials, and
Scrap means the various forms of special nuclear material generated during chemical and mechanical processing, other than
recycle material and normal process intermediates, which are unsuitable for continued processing, but all or part of which
will be converted to useable material by appropriate recovery operations.
Sealed source means any special nuclear material that is physically encased in a capsule, rod, element, etc. that prevents the
leakage or escape of the special nuclear material and that prevents removal of the special nuclear material without
penetration of the casing.
Source material means source material as defined in section 11z. of the Act and in the regulations contained in part 40 of
(1) Plutonium, uranium-233, uranium enriched in the isotope U233 or in the isotope U235, and any other material which the
Commission, pursuant to the provisions of section 51 of the Atomic Energy Act of 1954, as amended, determines to be
special nuclear material, but does not include source material; or
(1) Less than an amount of special nuclear material of moderate strategic significance, but more than 15 grams of
uranium-235 (contained in uranium enriched to 20 percent or more in the U235 isotope) or 15 grams of uranium-233 or 15
grams of plutonium or the combination of 15 grams when computed by the equation, grams=grams contained U235+grams
plutonium+grams U233; 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 U235 isotope); or
(3) 10,000 grams or more of uranium-235 contained in uranium enriched above natural, but less than 10 percent in the U235
(1) Less than a formula quantity of strategic special nuclear material but more than 1,000 grams of uranium-235 (contained
in uranium enriched to 20 percent or more in the U235 isotope) or more than 500 grams of uranium-233 or plutonium or in a
combined quantity of more than 1,000 grams when computed by the equation, grams=(grams contained U235)+2 (grams
U233+grams plutonium); or
(2) 10,000 grams or more or uranium-235 (contained in uranium enriched to 10 percent or more but less than 20 percent in
the U235 isotope).
Standard Error of the Inventory Difference (SEID) means the standard deviation of an inventory difference that takes into
account all measurement error contributions to the components of the ID.
Standard Error of the Process Difference means the standard deviation of a process difference value that takes into account
both measurement and nonmeasurement contributions to the components of PD.
Strategic special nuclear material means uranium-235 (contained in uranium enriched to 20 percent or more in the U235
isotope), uranium-233, or plutonium.
Tamper-safing means the use of devices on containers or vaults in a manner and at a time that ensures a clear indication of
any violation of the integrity of previouly made measurements of special nuclear material within the container or vault.
Traceability means the ability to relate individual measurement results to national standards or nationally accepted
measurement systems through an unbroken chain of comparisons.
Ultimate product means any special nuclear material in the form of a product that would not be further processed at that
Unit process means an identifiable segment or segments of processing activities for which the amounts of input and output
SSNM are based on measurements.
Unopened receipts means receipts not opened by the licensee, including receipts of sealed sources, and receipts opened
only for sampling and subsequently maintained under tamper-safing.
[50 FR 7579, Feb. 25, 1985, as amended at 52 FR 10039, Mar. 30, 1987; 56 FR 55998, Oct. 31, 1991; 67 FR 78144, Dec. 23, 2002; 73 FR 32463, Jun. 9, 2008]
Except as specifically authorized by the Commission in writing, no interpretations of the meaning of the regulations in this
recognized as binding on the Commission.
§ 74.6 Communications.
(c) Where practicable, by electronic submission, for example, via Electronic Information Exchange, or CD-ROM. Electronic submissions must be made in a manner that enables the NRC to receive, read, authenticate, distribute, and archive the submission, and process and retrieve it a single page at a time. Detailed guidance on making electronic submissions can be obtained by visiting the NRC’s Web site at http://www.nrc.gov/site-help/e-submittals.html; by e-mail to MSHD.Resource@nrc.gov; or by writing the Office of Information Services, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001.
[50 FR 7579, Feb. 25, 1985, as amended at 53 FR 4112, Feb. 12, 1988; 53 FR 43422, Oct. 27, 1988; 68 FR 58821, Oct. 10, 2003; 70 FR 69421, Nov. 16, 2005; 72 FR 33386, Jun. 18, 2007; 74 FR 62685, Dec. 1, 2009]
§ 74.7 Specific exemptions.
the common defense and security, and are otherwise in the public interest.
(a) The Nuclear Regulatory Commission has submitted the information collection requirements contained in this part to the Office of Management and Budget (OMB) for approval as required by the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). 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. OMB has approved the information collection requirements contained in this part under control number 3150-0123.
(b) The approved information collection requirements contained in this part appear in §§ 74.11, 74.13, 74.15, 74.17, 74.19, 74.31, 74.33, 74.41, 74.43, 74.45, 74.51, 74.57, and 74.59.
(1) In § 74.15, DOE/NRC Form-741 is approved under Control No. 3150-0003.
(4) In § 74.17, NRC Form 327 is approved under Control No. 3150-0139.
Subpart B--General Reporting and Recordkeeping Requirements
§ 74.11 Reports of loss or theft or attempted theft or unauthorized production of special nuclear material.
(a) Each licensee who possesses one gram or more of contained uranium-235, uranium-233, or plutonium shall notify the
NRC Operations Center within 1 hour of discovery of any loss or theft or other unlawful diversion of special nuclear
material which the licensee is licensed to possess, or any incident in which an attempt has been made to commit a theft or
unlawful diversion of special nuclear material. The requirement to report within 1 hour of discovery does not pertain to
measured quantities of special nuclear material disposed of as discards or inventory difference quantities. Each licensee
who operates an uranium enrichment facility shall notify the NRC Operations Center within 1 hour of discovery of any
unauthorized production of enriched uranium. For centrifuge enrichment facilities the requirement to report enrichment
levels greater than that authorized by license within 1 hour does not apply to each cascade during its start-up process, not to
exceed the first 24 hours.
(b) This notification must be made to the NRC Operations Center via the Emergency Notification System if the licensee is
party to that system. If the Emergency Notification System is inoperative or unavailable, the licensee shall make the
required notification via commercial telephonic service or other dedicated telephonic system or any other method that will
ensure that a report is received by the NRC Operations Center within one hour. The exemption of § 73.21(g)(3) applies to
all telephonic reports required by this section.
(c) Reports required under § 73.71 need not be duplicated under requirements of this section.
(a) Each licensee who transfers or receives special nuclear material in a quantity of one gram or more of contained uranium-235, uranium-233, or plutonium shall complete in computer-readable format a Nuclear Material Transaction Report. In addition, each licensee who adjusts the inventory in any manner, other than for transfers and receipts, shall submit a Nuclear Material Transaction Report, in computer-readable format, to coincide with the submission of the Material Balance report. This shall be done as specified in the instructions in NUREG/BR–0006 and NMMSS Report D–24, ‘‘Personal Computer Data Input for NRC Licensees.’’ Copies of these instructions NUREG/BR–0006 and NMMSS Report D–24, ‘‘Personal Computer Data Input for NRC Licensees’’ may be obtained either by writing the U.S. Nuclear Regulatory Commission, Division of Fuel Cycle Safety and Safeguards, Washington, DC 20555–0001, or by e-mail to RidsNmssFcss@nrc.gov. Each licensee who transfers the material shall submit a Nuclear Material Transaction Report in computer-readable format as specified in the instructions no later than the close of business the next working day. Each licensee who receives the material shall submit a Nuclear Material Transaction Report in computer-readable format in accordance with instructions within ten (10) days after the material is received. This prescribed computer-readable format replaces the DOE/NRC Form 741 which has been previously submitted in paper form.
(b) Each licensee who receives 1 gram or more of contained uranium-235, uranium-233, or plutonium from a foreign
source shall:
(1) Complete in computer-readable format both the supplier's and receiver's portion of the Nuclear Material Transaction
(2) Perform independent tests to assure the accurate identification and measurement of the material received, including its
weight and enrichment; and
(c) Each licensee who ships special nuclear material in a quantity of one gram or more of contained uranium-235, uranium-233, or plutonium to foreign recipient shall complete in computer-readable format the supplier’s portion of the Nuclear Material Transaction Report. The licensee shall complete the receiver’s portion of the Nuclear Material Transaction Report only if a significant shipper-receiver difference as described in §§ 74.31, 74.43, or 74.59, as applicable, is identified.
(d) Any licensee who is required to submit inventory change reports pursuant to § 75.34 of this chapter (pertaining to
implementation of the US/International Atomic Energy Agency (IAEA) Safeguards Agreement) shall prepare and submit
these reports only as provided in that section (instead of as provided in paragraphs (a) and (b) of this section).
[59 FR 35621, July 13, 1994; 68 FR 58821, Oct. 10, 2003; 73 FR 32464, Jun. 9, 2008]
§ 74.19 Recordkeeping.
Subpart C--Special Nuclear Material of Low Strategic Significance
(a) General performance objectives. Each licensee who is authorized to possess and use more than one effective kilogram
of special nuclear material of low strategic significance, excluding sealed sources, at any site or contiguous sites subject to
control by the licensee, other than a production or utilization facility licensed pursuant to part 50 or 70 of this chapter, or
operations involved in waste disposal, shall implement and maintain a Commission approved material control and
accounting system that will achieve the following objectives:
(c) System capabilities. To meet the general performance objectives of paragraph (a) of this section, the material control
and accounting system must include the capabilities described in paragraph (c) (1) through (8) of this section. The licensee
(1) Establish, document, and maintain a management structure which assures clear overall responsibility for material
control and accounting functions, independence from production responsibilities, separation of key responsibilities, and
adequate review and use of critical material control and accounting procedures;
(2) Establish and maintain a measurement system which assures that all quantities in the material accounting records are
based on measured values;
(3) Follow a measurement control program which assures that measurement bias is estimated and significant biases are
eliminated from inventory difference values of record;
(5) Unless otherwise required to satisfy part 75 of this chapter, perform a physical inventory at least every 12 months and,
within 60 days after the start of the inventory, reconcile and adjust the book inventory to the results of the physical
inventory, and resolve, or report an inability to resolve, any inventory difference which is rejected by a statistical test which
has a 90 percent power of detecting a discrepancy of a quantity of uranium-235 established by NRC on a site-specific basis;
(6) Maintain current knowledge of items when the sum of the time of existence of an item, the time to make a record of the
item, and the time necessary to locate the item exceeds 14 days. Store and handle, or subsequently measure, items in a
manner so that unauthorized removals of substantial quantities of material from items will be detected. Exempted are items
individually containing less than 500 grams of U235 up to a total of 50 kilograms of U235, solutions with a concentration of
less than 5 grams of U235 per liter, and items of waste destined for burial or incineration;
(7) Resolve, on a shipment basis and when required to satisfy part 75 of this chapter, on a batch basis, shipper/receiver
differences that exceed both twice the combined measurement standard error for that shipment and 500 grams of U235; and
(8) Independently assess the effectiveness of the material control and accounting system at least every 24 months, and
document management's action on prior assessment recommendations.
(d) Recordkeeping. (1) Each licensee shall establish records that will demonstrate that the requirements of paragraph (c) of
this section have been met and maintain these records for at least 3 years, unless a longer retention time is required by part
75 of this chapter.
(2) Records which must be maintained pursuant to this part may be the original or a reproduced copy or a microform if
such reproduced copy or microform is duly authenticated by authorized personnel and the microform is capable of
producing a clear and legible copy after storage for the period specified by Commission regulations. The record may also
be stored in electronic media with the capability for producing legible, accurate, and complete records during the required
retention period. Records such as letters, drawings, specifications, must include all pertinent information such as stamps,
initials, and signatures.
§ 74.33 Nuclear material control and accounting for uranium enrichment facilities authorized to
produce special nuclear material of low strategic significance.
(a) General performance objectives. Each licensee who is authorized by this chapter to possess equipment capable of
enriching uranium or operate an enrichment facility, and produce, possess, or use more than one effective kilogram of
special nuclear material of low strategic significance at any site or contiguous sites, subject to control by the licensee, shall
establish, implement, and maintain a NRC-approved material control and accounting system that will achieve the following
(1) Maintain accurate, current, and reliable information of and periodically confirm the quantities and locations of source
material and special nuclear material in the licensee's possession;
(5) Resolve indications of production of uranium enriched to 10 percent or more in the isotope U235 (for centrifuge
enrichment facilities this requirement does not apply to each cascade during its start-up process, not to exceed the first 24
(8) Provide information to aid in the investigation of the production of uranium enriched to 10 percent or more in the
isotope U235; and
(b) Implementation dates. Each applicant for a license who would, upon issuance of a license pursuant to any part of this
chapter, be subject to the requirements of paragraph (a) of this section shall:
(1) Submit a fundamental nuclear material control plan describing how the performance objectives of § 74.33(a), the system
features and capabilities of § 74.33(c), and the recordkeeping requirements of § 74.33(d) will be met; and
(c) System features and capabilities. To meet the general performance objectives of paragraph (a) of this section, the
Material Control and Accounting (MC&A) system must include the features and capabilities described in paragraphs (c) (1)
through (8) of this section. The licensee shall establish, document, and maintain:
(2) A measurement program that ensures that all quantities of source material and special nuclear material in the accounting
records are based on measured values;
(i) Measurement bias is estimated and minimized through the measurement control program, and any significant biases are
(ii) All MC&A measurement systems are controlled so that twice the standard error of the inventory difference, based on
all measurement error contributions, is less than the greater of 5,000 grams of U235 or 0.25 percent of the U235 of the active
inventory for each total plant material balance; and
(iii) Any measurements performed under contract are controlled so that the licensee can satisfy the requirements of
paragraphs (c)(3) (i) and (ii) of this section;
(i) Performing, unless otherwise required to satisfy part 75 of this chapter, a dynamic (nonshutdown) physical inventory of
in-process (e.g., in the enrichment equipment) uranium and U235 at least every 65 days, and performing a static physical
inventory of all other uranium and total U235 contained in natural, depleted, and enriched uranium located outside of the
enrichment processing equipment at least every 370 calendar days, with static physical inventories being conducted in
conjunction with a dynamic physical inventory of in-process uranium and U235 so as to provide a total plant material
balance at least every 370 calendar days; and
(ii) Reconciling and adjusting the book inventory to the results of the static physical inventory and resolving, or reporting
an inability to resolve, any inventory difference that is rejected by a statistical test which has a 90 percent power of
detecting a discrepancy of a quantity of U235, established by NRC on a site-specific basis, within 60 days after the start of
each static physical inventory;
(i) Production of uranium enriched to 10 percent or more in the U235 isotope, to the extent that SNM of moderate strategic
significance could be produced within any 370 calendar day period;
(ii) Items are stored and handled, or subsequently measured, in a manner so that unauthorized removal of 500 grams or
more of U235, as individual items or as uranium contained in items, will be detected. Exempted from the requirements of
paragraph (c)(6) (i) and (ii) of this section are licensed-identified items each containing less than 500 grams U235 up to a
cumulative total of 50 kilograms of U235 and items that exist for less than 14 calendar days;
(7) A resolution program that ensures that any shipper-receiver differences are resolved that are statistically significant and
exceed 500 grams U235 on:
(d) Recordkeeping. (1) Each licensee shall establish records that will demonstrate that the performance objectives of
paragraph (a) of this section and the system features and capabilities of paragraph (c) of this section have been met and
maintain these records in an auditable form, available for inspection, for at least 3 years, unless a longer retention time is
required by part 75 of this chapter.
(2) Records that must be maintained pursuant to this part may be the original or a reproduced copy or a microform if such
reproduced copy or microform is duly authenticated by authorized personnel and the microform is capable of producing a
clear and legible copy after storage for the period specified by Commission regulations. The record may also be stored in
electronic media with the capability for producing, on demand, legible, accurate, and complete records during the required
retention period. Records such as letters, drawings, and specifications must include all pertinent information such as
stamps, initials, and signatures.
Subpart D--Special Nuclear Material of Moderate Strategic Significance
(1) Submit a fundamental nuclear material control (FNMC) plan describing how the performance objectives of § 74.41(a) will be achieved, and how the system capabilities required by § 74.41(c) will be met; and
(c) System capabilities. To achieve the performance objectives specified in § 74.41(a), the MC&A system must include the capabilities described in §§ 74.43 and 74.45, and must incorporate checks and balances that are sufficient to detect falsification of data and reports that could conceal diversion of SNM by:
§ 74.43 Internal controls, inventory, and records.
(a) General. Licensees subject to § 74.41 shall maintain the internal control, inventory, and recordkeeping capabilities required in paragraphs (b), (c), and (d) of this section.
(5) Establish records that will demonstrate that the performance objectives of § 74.41(a)(1) through (4), the system capabilities of paragraphs (b) and (c) of this section and § 74.45(b) and (c) have been met, and maintain these records in an auditable form, available for inspection, for at least 3 years, unless a longer retention time is specified by § 74.19(b), part 75 of this chapter, or by a specific license condition.
§ 74.45 Measurements and measurement control.
(a) General. Licensees subject to § 74.41 of this part shall establish and maintain the measurement and measurement control capabilities required by paragraphs (b) and (c) of this section.
(ii) A sampling procedure, technique, or sampling equipment is modified to the extent that a systematic sampling error could be introduced; and (iii) Sample containers, sample transport methods, or sample storage conditions are changed or modified to the extent that a systematic sampling error could be introduced.
Subpart E--Formula Quantities of Strategic Special Nuclear Material
(a) General performance objectives. Each licensee who is authorized to possess five or more formula kilograms of strategic
special nuclear material (SSNM) and to use such material at any site, other than a nuclear reactor licensed pursuant to part
50 of this chapter, an irradiated fuel reprocessing plant, an operation involved with waste disposal, or an independent spent
fuel storage facility licensed pursuant to part 72 of this chapter shall establish, implement, and maintain a Commission-approved material control and accounting (MC&A) system that will achieve the following objectives:
(2) Timely detection of the possible abrupt loss of five or more formula kilograms of SSNM from an individual unit
(b) System capabilities. To achieve the general performance objectives specified in § 74.51(a), the MC&A system must
provide the capabilities described in §§ 74.53, 74.55, 74.57 and 74.59 and must incorporate checks and balances that are
sufficient to detect falsification of data and reports that could conceal diversion by:
(2) Collusion between an individual with MC&A responsibilities and another individual who has responsibility or control
within both the physical protection and the MC&A systems.
(d) Inventories. Notwithstanding § 74.59(f)(1), licensees shall perform at least three bimonthly physical inventories after implementation of the NRC approved FNMC Plan and shall continue to perform bimonthly inventories until performance acceptable to the NRC has been demonstrated and the Commission has issued formal approval to perform semiannual inventories. Licensees who have prior experience with process monitoring and/or can demonstrate acceptable performance against all Plan commitments may request authorization to perform semiannual inventories at an earlier date.
(2) Notwithstanding § 74.59(f)(1), licensees shall perform at least three bimonthly physical inventories after implementation of the NRC approved FNMC Plan and shall continue to perform bimonthly inventories until performance acceptable to the NRC has been demonstrated and the Commission has issued formal approval to perform semiannual inventories. Licensees who have prior experience with process monitoring and/or can demonstrate acceptable performance against all Plan commitments may request authorization to perform semiannual inventories at an earlier date.
§ 74.53 Process monitoring.
(a) Licensees subject to § 74.51 shall monitor internal transfers, storage, and processing of SSNM. The process monitoring
must achieve the detection capabilities described in paragraph (b) of this section for all SSNM except:
(1) SSNM that is subject to the item loss detection requirements of § 74.55;
(2) Scrap in the form of small pieces, cuttings, chips, solutions, or in other forms that result from a manufacturing process,
held in containers of 30 gallons or larger, with an SSNM content of less than 0.25 grams per liter;
(3) SSNM with an estimated measurement standard deviation greater than five percent that is either input or output material
associated with a unit that processes less than five formula kilograms over a consecutive three-month period; and
(4) SSNM involved in research and development operations that process less than five formula kilograms during any
seven-consecutive-day period.
(b) Unit process detection capability. For each unit process, a licensee shall establish a production quality control program
capable of monitoring the status of material in process. The program shall include:
(1) A statistical test that has at least a 95 percent power of detecting an abrupt loss of five formula kilograms within three
working days of a loss of Category IA material from any accessible process location and within seven calendar days of a
loss of Category IB material from any accessible process location;
(2) A quality control test whereby process differences greater than three times the estimated standard deviation of the
process difference estimator and 25 grams of SSNM are investigated; and
(3) A trend analysis for monitoring and evaluating sequences of material control test results from each unit process to
determine if they indicate a pattern of losses or gains that are of safeguards significance.
(c) For research and development operations exempt from the requirements of paragraph (b) of this section, the licensee
(1) Perform material balance tests on a lot or a batch basis, as appropriate, or monthly, whichever is sooner, and investigate
any difference greater than 200 grams of plutonium or U-233 or 300 grams of U-235 that exceeds three times the
estimated standard error of the inventory difference estimator;
(2) Evaluate material balance results generated during an inventory period for indications of measurement biases or
unidentified loss streams and investigate, determine the cause(s) of, and institute corrective action for cumulative inventory
differences generated during an inventory period that exceed three formula kilograms of SSNM.
(a) Licensees subject to § 74.51 shall provide the detection capability described in paragraph (b) of this section for
laboratory samples containing less than 0.05 formula kilograms of SSNM and any uniquely identified items of SSNM that
have been quantitatively measured, the validity of that measurement independently confirmed, and that additionally have
(1) Tamper-safed or placed in a vault or controlled access area that provides protection at least equivalent to tamper-safing;
(b) The licensee shall verify on a statistical sampling basis, the presence and integrity of SSNM items. The statistical
sampling plan must have at least 99 percent power of detecting item losses that total five formula kilograms or more,
plant-wide, within:
(1) Thirty calendar days for Category IA items and 60 calendar days for Category IB items contained in a vault or in a
permanently controlled access area isolated from the rest of the material access area (MAA);
(2) Three working days for Category IA items and seven calendar days for Category BI items located elsewhere in the
MAA, except for reactor components measuring at least one meter in length and weighing in excess of 30 kilograms for
which the time interval shall be 30 calendar days;
(4) Sixty calendar days for samples in a vault or permanently controlled access area and 30 calendar days for samples
elsewhere in the MAA for samples each containing less than 0.05 formula kilograms of SSNM.
(c) Items containing scrap in the form of small pieces, cuttings, chips, solutions, or in other forms that result from a
manufacturing process, held in containers of 30 gallon or larger, with an SSNM concentration of less than 0.25 grams per
liter are exempt from the requirements of paragraph (b) of this section.
(a) Licensees subject to § 74.51 shall provide the MC&A alarm resolution capabilities described in paragraphs (b) through
(1) Material processing operations related to the alarm must be suspended until completion of planned alarm resolution
activities, unless the suspension of operations will adversely affect the ability to resolve the alarm. Operation of continuous
processes may continue for 24 hours from the time of the occurrence of the alarm during which time checks shall be made
for mistakes in records or calculations that could have caused the alarm.
§ 74.59 Quality assurance and accounting requirements.
(a) Licensees subject to § 74.51 shall provide the quality assurance and accounting capabilities described in paragraphs (b)
through (h) of this section.
(1) Establish and maintain a management structure that includes clear overall responsibility for planning, coordinating, and
administering material control and accounting functions, independence of material control and accounting functions from
production responsibilities, and separation of functions such that the activities of one individual or organizational unit serve
as controls over and checks of the activities of others; and
(2) Provide for the adequate review, approval, and use of those material control and accounting procedures that are
identified in the approved FNMC plan as being critical to the effectiveness of the described system.
(c) Personnel qualification and training. The licensee shall assure that personnel who work in key positions where mistakes
could degrade the effectiveness of the material control and accounting system are trained to maintain a high level of
safeguards awareness and are qualified to perform their duties and/or responsibilities.
(3) Provide the data necessary for performance of the material control tests required by § 74.53(b).
(e) Measurement control. The licensee shall assure that the quality of SSNM measurement systems and material processing
practices is continually controlled to a level of effectiveness sufficient to satisfy the capabilities required for detection,
response, and accounting. To achieve this objective the licensee shall:
(1) Perform engineering analyses and evaluations of the design, installation, preoperational tests, calibration, and operation
of all measurement systems to be used for MC&A purposes;
(2) Perform process and engineering tests using well characterized materials to establish or to verify the applicability of
existing procedures for mixing and sampling SSNM and maintaining sample integrity during transport and storage. Tests
must be repeated at least every three years, at any time there is a process modification that alters the physical or chemical
composition of the SSNM, or whenever there is a change in the sampling technique or equipment; and
(3) Generate current data on the performance of measurement processes, including, as appropriate, values for bias
corrections, uncertainties on calibration factors, and random error standard deviations. The program must include:
(i) The onging use of standards for calibration and control of all applicable measurement systems. Calibrations must be
repeated whenever any change in a measurement system occurs which has the potential to affect a measurement result or
when program data, generated by tests performed at a pre-determined frequency, indicate a need for recalibration.
Calibrations and tests must be based on standards with traceability to national standards or nationally accepted
(ii) A system of control measurements to provide current data for the estimation of the standard deviations that are
significant contributors to the measurement uncertainties associated with shipper/receiver differences, inventory
differences, and process differences.
(4) Utilize the data generated during the current material balance period for the estimation of the standard error of the
inventory difference (SEID) and the standard error of the process differences. Calibration and measurement error data
collected and used during immediately preceeding material balance periods may be combined with current data provided
that the measurement systems are in statistical control and the combined data are utilized in characterizing the unknowns.
(5) Evaluate all program data and information to assure that measurement performance is so controlled that the SEID
estimator is less than 0.1 percent of active inventory.
(i) Bias corrections are applied to individual items if for any measurement system the relative bias estimate exceeds twice
the standard deviation of its estimator, the absolute bias estimate exceeds 50 grams of SSNM when applied across all
affected items, and the absolute bias estimate on an individual item basis exceeds the rounding error of affected items; and
(ii) All biases (regardless of significance) that are not applied as corrections to individual items are applied as a correction
to the inventory difference.
(7) Investigate and take corrective action, as appropriate, to identify and reduce associated measurement biases when, for
like material types (i.e., measured by the same measurement system), the net cumulative shipper/receiver differences
accumulated over a six-month period exceed the larger of one formula kilogram or 0.1 percent of the total amount received.
(8) Establish and maintain a statistical control system designed to monitor the quality of each type of program
measurement. Control limits must be established to be equivalent to levels of significance of 0.05 and 0.001. Control data
exceeding the 0.05 limits must be investigated and corrective action taken in a timely manner. Whenever a single data point
exceeds the 0.001 control limit, the measurement system in question must not be used for material control and accounting
purposes until it has been brought into control at the 0.05 level.
(1) Except as required by part 75 of this Chapter, perform a physical inventory at least every six calendar months and
within 45 days after the start of the ending inventory:
(ii) If required to perform an investigation pursuant to paragraph (f)(1)(i) of this section, evaluate the significance of the
inventory difference relative to expected performance as determined from an analysis of an appropriate sequence of
historical inventory differences;
(iii) Investigate and report, by an appropriate method listed in § 74.6, to the Director, Office of Nuclear Material Safety and Safeguards, any difference that exceeds three times the standard deviation determined from the sequential analysis;
(2) Implement policies, practices, and procedures designed to ensure the quality of physical inventories. These must
(i) Development of procedures for tamper-safing of containers or vaults containing SSNM not in process that include
adequate controls to assure the validity of assigned SSNM values;
(iii) Requirements for signed documentation of all SSNM transfers between areas with different custodial responsibility
that reflect all quantities of SSNM transferred;
(v) Cutoff procedures for transfers and processing so that all quantities of SSNM are inventoried and none are inventoried
(vi) Cutoff procedures for records and reports so that all transfers for the inventory and material balance interval and no
others are included in the records;
(vii) Inventory procedures for sealed sources and containers or vaults containing SSNM that assure reliable identification
and quantification of contained SSNM;
(viii) Inventory procedures for in-process SSNM that provide for measurement of quantities not previously measured for
element and isotope, as appropriate, and remeasurement of material previously measured but whose validity has not been
assured by tamper-safing or equivalent protection; and
(ix) Written instructions for conducting physical inventories that detail assignments, responsibilities, and preparation for
and performance of an inventory.
(g) Accounting. The licensee shall establish auditable records sufficient to demonstrate that the requirements of §§ 74.53,
74.55, 74.57, and 74.59 have been met and retain those records for at least three years unless a longer retention period is
(ii) Review and evaluation of shipper/receiver differences on an individual container or lot basis, as appropriate, on a
shipment basis, and on a batch basis when required by part 75 of this Chapter;
(iii) Investigation and corrective action when shipper/receiver differences exceed twice the estimated standard deviation of
the difference estimator and the larger of 0.5 percent of the amount of SSNM in the container, lot, or shipment, as
appropriate, or 50 grams of SSNM; and
(i) Internally generated scrap and scrap from other licensees or contractors is segregated until accountability is established;
(ii) Any scrap measured with a standard deviation greater than five percent of the measured amount is recovered so that the results are segregated by inventory period and recovered within six months of the end of the inventory period in which the scrap was generated except where it can be demonstrated that the scrap measurement uncertainty will not cause noncompliance with § 74.59(e)(5).
(3) Incorporate checks and balances in the MC&A system sufficient to control the rate of human errors in material control
(4) Perform independent assessments at least every 12 months that assess the performance of the MC&A system, review its
effectiveness, and document management's action on prior assessment recommendations. Assessments must include an
evaluation of the measurement control program of any outside contractor laboratory performing MC&A measurements for
a licensee, unless the contractor is also subject to the requirements of § 74.59(e).
Subpart F--Enforcement
Source: 52 FR 10040, Mar. 30, l987, unless otherwise noted.
§ 74.81 Inspections.
(a) Each licensee shall afford to the Commission at all reasonable times opportunity to inspect special nuclear material and
the premises and facilities wherein special nuclear material is used, produced, or stored.
(b) Each licensee shall make available to the Commission for inspection, upon reasonable notice, records kept by the
licensee pertaining to its receipt, possession, use, acquisition, import, export, or transfer of special nuclear material.
(c)(1) In the case of fuel cycle facilities where nuclear reactor fuel is fabricated or processed, each licensee shall upon
request by the Director, Office of Nuclear Material Safety and Safeguards or the appropriate NRC Regional Administrator,
provide rent-free office space for the exclusive use of Commission inspection personnel. Heat, air conditioning, light,
electrical outlets, and janitorial services shall be furnished by each licensee. The office shall be convenient to and have full
access to the facility, and shall provide the inspector both visual and acoustic privacy.
(2) For a site with a single fuel facility licensed pursuant to part 70 of this chapter, the space provided shall be adequate to
accommodate a full-time inspector, a part-time secretary, and transient NRC personnel. It will be generally commensurate
with other office facilities at the site. A space of 250 square feet either within the site's office complex or in an office trailer
or other on-site space is suggested as a guide. For sites containing multiple fuel facilities, additional space may be
requested to accommodate additional full-time inspector(s). The office space that is provided shall be subject to the
approval of the Director, Office of Nuclear Material Safety and Safeguards or the appropriate NRC Regional Administrator.
All furniture, supplies, and communication equipment will be furnished by the Commission.
(3) The licensee shall afford any NRC resident inspector assigned to their site, or other NRC inspectors identified by the
Director of the Office of Nuclear Material Safety and Safeguards as likely to inspect the facility, immediate unfettered
access, equivalent to access provided regular plant employees, following proper identification and compliance with
applicable access control measures for security, radiological protection, and personal safety.
(d) At a facility using and possessing a formula quantity of strategic special nuclear material in unirradiated form, the
licensee may not announce or otherwise communicate to its employees or site contractors the arrival or presence of an NRC
safeguards inspector unless specifically requested to do so by the safeguards inspector.
[50 FR 7579, Feb. 25, 1985, as amended at 52 FR 31613, Aug. 21, 1987; 54 FR 6878, Feb. 15, 1989; 55 FR 5979, Feb. 21,
1990; 58 FR 29522, May 21, 1993]
Each licensee shall perform, or permit the Commission to perform, any tests that the Commission deems appropriate or
§ 74.83 Violations.
§ 74.84 Criminal penalties.
purposes of section 223, all the regulations in part 74 are issued under one or more of sections 161b, 161i, or 161o, except
(b) The regulations in part 74 that are not issued under sections 161b, 161i, or 161o for the purposes of section 223 are as
follows: §§ 74.1, 74.2, 74.4, 74.5, 74.6, 74.7, 74.8, 74.83 and 74.84.