In the Matter of NAC International, Inc., and All Other Persons Who Obtain Safeguards Information Described Herein, 12245-12246 [05-4795]

Agencies

• NUCLEAR REGULATORY COMMISSION

[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Pages 12245-12246]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4795]


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NUCLEAR REGULATORY COMMISSION

[Docket Nos. 71-9010 and 71-9270; EA-05-045]


In the Matter of NAC International, Inc., and All Other Persons 
Who Obtain Safeguards Information Described Herein

AGENCY: Nuclear Regulatory Commission.

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

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FOR FURTHER INFORMATION CONTACT: Cynthia Barr, Project Manager, 
Licensing and Inspection Directorate, Spent Fuel Project Office, Office 
of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Rockville, MD 20852. Telephone: (301) 415-4015; fax number: 
(301) 415-8555; e-mail CSB2@nrc.gov.

SUPPLEMENTARY INFORMATION:

I

    In accordance with the Atomic Energy Act of 1954 and 10 CFR Part 
71, NAC International, Inc., (NAC) holds Certificate of Compliance Nos. 
9010 for the Model No. NLI 1/2 and 9270 for the Model No. NAC-UMS 
transportation packages. In a phone call on January 27, 2005, NAC 
agreed to meet with the U.S. Nuclear Regulatory Commission (NRC) staff 
with Safeguards Information security measures in place. The purpose of 
the meeting(s) is to discuss the NRC's engineering evaluations 
performed to evaluate the safety and security of a single NLI 1/2 and 
an array of NAC-UMS transportation packages. The meeting(s) will be 
closed to the public.
    Following the September 11, 2001, simultaneous terrorist events at 
the World Trade Center (WTC) in New York City and at the Pentagon in 
Virginia, the U.S. Government issued a nationwide alert for the 
potential of additional terrorist acts within the United States. The 
NRC initiated a comprehensive review of all NRC-licensed activities to 
evaluate those activities against threats. As part of that review, U.S. 
Nuclear Regulatory Commission initiated an engineering study to assess 
the consequences of a terrorist event, similar in magnitude to the WTC 
and Pentagon, on spent nuclear fuel transportation packages. The NRC 
staff intends to discuss specific information on the engineering 
evaluations performed for the NLI 1/2 and NAC-UMS transportation 
packages with NAC. However, the Commission has determined that the 
material to be discussed at the meeting(s) is Safeguards Information, 
will not be released to the public, and must be protected from 
unauthorized disclosure. Therefore, the Commission is imposing the 
requirements, as set forth in 10 CFR 73.21, so that NAC can receive 
this information for review and comment at the closed meeting. This 
Order also imposes requirements for the protection of Safeguards 
Information in the hands of any person,\1\ whether or not a Licensee of 
the Commission, who produces, receives, or acquires Safeguards 
Information.
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    \1\ Person means (1) any individual, corporation, partnership, 
firm, association, trust, estate, public or private institution, 
group, government agency other than the Commission or the 
Department, except that the Department shall be considered a person 
with respect to those facilities of the Department specified in 
section 202 of the Energy Reorganization Act of 1974 (88 Stat. 
1244), any State or any political subdivision of, or any political 
entity within a State, any foreign government or nation or any 
political subdivision of any such government or nation, or other 
entity; and (2) any legal successor, representative, agent, or 
agency of the foregoing.
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II

    The Commission has broad statutory authority to protect and 
prohibit the unauthorized disclosure of Safeguards Information. Section 
147 of the Atomic Energy Act of 1954, as amended, grants the Commission 
explicit authority to ``issue such orders, as necessary to prohibit the 
unauthorized disclosure of safeguards information * * *''. This 
authority extends to information concerning special nuclear material, 
source material, and byproduct material, as well as production and 
utilization facilities. Licensees and all persons who produce, receive, 
or acquire Safeguards Information must ensure proper handling and 
protection of Safeguards Information to avoid unauthorized disclosure 
in accordance with the specific requirements for the protection of 
Safeguards Information as contained in 10 CFR 73.21. The Commission 
hereby provides notice that it intends to

[[Page 12246]]

treat all violations of the requirements contained in 10 CFR 73.21, 
applicable to the handling and unauthorized disclosure of Safeguards 
Information, as serious breaches of adequate protection of the public 
health and safety and the common defense and security of the United 
States. Access to Safeguards Information is limited to those persons 
who have established the need-to-know the information, and are 
considered to be trustworthy and reliable. A need-to-know means a 
determination by a person having responsibility for protecting 
Safeguards Information that a proposed recipient's access to Safeguards 
Information is necessary in the performance of official, contractual, 
or duties of employment. Licensees and all other persons who obtain 
Safeguards Information must ensure that they develop, maintain and 
implement strict policies and procedures for the proper handling of 
Safeguards Information to prevent unauthorized disclosure, in 
accordance with the requirements in 10 CFR 73.21. NAC must ensure that 
all contractors whose employees may have access to Safeguards 
Information either adhere to the licensee's policies and procedures on 
Safeguards Information or develop, maintain and implement their own 
acceptable policies and procedures. NAC remains responsible for the 
conduct of their contractors. The policies and procedures necessary to 
ensure compliance with applicable requirements contained in 10 CFR 
73.21 must address, at a minimum, the following: the general 
performance requirement that each person who produces, receives, or 
acquires Safeguards Information shall ensure that Safeguards 
Information is protected against unauthorized disclosure; protection of 
Safeguards Information at fixed sites, in use and in storage, and while 
in transit; correspondence containing Safeguards Information; access to 
Safeguards Information; preparation, marking, reproduction and 
destruction of documents; external transmission of documents; use of 
automatic data processing systems; and removal of the Safeguards 
Information category.
    In order to provide assurance that NAC is implementing prudent 
measures to achieve a consistent level of protection, to prohibit the 
unauthorized disclosure of Safeguards Information, NAC shall implement 
the requirements identified in 10 CFR 73.21. The Commission recognizes 
that NAC may have already initiated many of the measures set forth in 
10 CFR 73.21 to this Order for handling of Safeguards Information in 
conjunction with a previous NRC Order. In addition, pursuant to 10 CFR 
2.202, I find that in light of the common defense and security matters 
identified above, which warrant the issuance of this Order, the public 
health, safety and interest require that this Order be effective 
immediately.

III

    Accordingly, pursuant to Sections 53, 57, 62, 63, 81, 161b, 161i, 
161o, 182 and 186 of the Atomic Energy Act of 1954, as amended, and the 
Commission's regulations in 10 CFR 2.202, and 10 CFR Part 71, it is 
hereby ordered, effective immediately, that NAC international, Inc., 
and all other persons who produce, receive, or acquire the safeguards 
information described above, and any related safeguards information, 
shall comply with the requirements of 10 CFR 73.21.
    The Director, Office of Nuclear Materials Safety and Safeguards, 
may in writing, relax or rescind any of the above conditions upon 
demonstration by the licensee.

IV

    In accordance with 10 CFR 2.202, NAC must, and any other person 
adversely affected by this Order may, submit an answer to this Order, 
and may request a hearing on this Order, within twenty (20) days of the 
date of this Order. Where good cause is shown, consideration will be 
given to extending the time to request a hearing. A request for 
extension of time in which to request a hearing must be made in writing 
to the Director, Office of Nuclear Material Safety and Safeguards, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555, and include a 
statement of good cause for the extension. Any request for a hearing 
shall be submitted to the Secretary, Office of the Secretary of the 
Commission, U.S. Nuclear Regulatory Commission, ATTN: Rulemakings and 
Adjudications Staff, Washington, DC 20555. Copies also shall be sent to 
the Director, Office of Nuclear Material Safety and Safeguards, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555, to the Assistant 
General Counsel for Materials Litigation and Enforcement at the same 
address, and to NAC if the hearing request is by a person other than 
NAC. Because of possible disruptions in delivery of mail to United 
States Government offices, it is requested that requests for hearing be 
transmitted to the Secretary of the Commission either by means of 
facsimile transmission to 301-415-1101 or by e-mail to 
hearingdocket@nrc.gov and also to the Office of the General Counsel 
either by means of facsimile transmission to 301-415-3725 or by e-mail 
to OGCMailCenter@nrc.gov. If a person other than NAC requests a 
hearing, that person shall set forth with particularity the manner in 
which his interest is adversely affected by this Order and shall 
address the criteria set forth in 10 CFR 2.714(d).
    If a hearing is requested by NAC or a person whose interest is 
adversely affected, the Commission will issue an Order designating the 
time and place of any hearing. If a hearing is held, the issue to be 
considered at such hearing shall be whether this Order should be 
sustained.
    Pursuant to 10 CFR 2.202(c)(2)(i), NAC may, in addition to 
demanding a hearing, at the time the answer is filed or sooner, move 
the presiding officer to set aside the immediate effectiveness of the 
Order on the ground that the Order, including the need for immediate 
effectiveness, is not based on adequate evidence but on mere suspicion, 
unfounded allegations, or error. In the absence of any request for 
hearing, or written approval of an extension of time in which to 
request a hearing, the provisions specified in Section III above shall 
be final twenty (20) days from the date of this Order without further 
order or proceedings. If an extension of time for requesting a hearing 
has been approved, the provisions specified in Section III shall be 
final when the extension expires if a hearing request has not been 
received. A request for hearing shall not stay the immediate 
effectiveness of this Order.

    Dated this 3rd day of March, 2005.

    For the Nuclear Regulatory Commission.
Margaret V. Federline,
Deputy Director, Office of Nuclear Material Safety and Safeguards.
[FR Doc. 05-4795 Filed 3-10-05; 8:45 am]
BILLING CODE 7590-01-P