COPY NO ATOMICENERGY COMMISSION SUMMARY NCII'ESOF MEETING WITHREPRESENTATIVES OF THE NUCLEAR MATERIALS EQUIPMENTCORPC'RATION Tue sday August 10 1965 2 20 p m Room A-41 0 Ger mantown Maryland Commis i one r s Staff Glenn T Seaborg J ames T Ramey Ger al d F Tape Acting General Willi am C Bar tels Howard C Brown Vincent J D'Ami co Leo Dubi nski Gordo n Fowler Douglas E Geor ge Thomas J Hayc ock J ohn C Hoyle Dwight A In k Antionette Joseph Milton Klein Ragnwald Muller Juli us H Rubi n William L Woodard J ames R Yore Chairm an Manage r E J Bloch Gene r nl Counse l J ose ph F Hennes se y Acting Secretary F T Hobbs Oak Rid ge National Charles Labora to ry A Keller Repr esenta tive s of NUMEC Zal man Shapir o Oscar Gray The Cha irm a n noted that the Commissi oners sev er al week s ag o and in further prior afternoon on the part said of the matter of NUMECregarding the Commission viewed this th ought NUMECshould to any Commission be given deta il had bee n i nformed at a Meeting on the inv olving a l ack of a c c ountab ilit a sizable amount of U-235 matter with extreme an opportt mity ccncern y He and to be he a rd prior decisi on on a cour s e of action -1- I L ---- ---- C - - I F Y Mr Shapiro said he appreciated Atomic Energy Corr mission spent on this the first and the Commissioners let by Westinghouse-Astro for the production of enriched He a l so noted purchase this pr oduct i on experience as expected c ourse based of the th at losses said on prior higher he ordered an internal then additi the coated the yield Since to keep up with a great Kimwipes and Kleenex after use was informed that consequence that he ordered deal tissues the burial could be thoroughly tied of scrap than up with it was imp ossible as would ord inarily with highly in disposal drums physicists However of the drums halted -2- quantities He stated drums was of 11ffi to be in excess investigated uranim l and he and produ ct ion personnel in these for burial enriched up was accomplished were used in great accumulated appeared He had to be recycled of cleaning by NUMEChealth the losses n He said he had warned the operating associated and suitable He system was considerably were generally were accumu lated the material attention time ur anium carbi de particles the normal recovery the the method of productio work on the contract of the hazard and therefore described facilities have been accomplished personnel at that of the production ona l unanticipated During were be ing experienced and more material the had not gone as well to Mr Shap iro's investigation bri efly elements NUMEC's first experience it was brought than anticipated planned laboratory Laboratory for NERVAfuel represented than anticipated used by NUMECfor stre sse d that order had was actually Nuclear The work generally contract Mr Shapiro less material the themselves He noted the NUMECc ontract matter contract the time and effort _- - i1v when he was told of th os e anticipate so that the matter d Mr Shapiro material he was told He added each shift kimwipes Mr Shapiro said on now appeared 1 1 2 kg 1 s of material was dumped into plant described operat in g it was possible in the uranium this could that system closely only be approximately by the the manner in which the U-raffinate tanks and thence added that no more than 1 or l 1 2 kg's Commissioner shifts In answe r to a question holding Mr Shapiro that losses the loss used about period NUMECmonitored that Chairm an Mr Shapiro three told great in each used attendants the contract he was also However a gram of could be contained of eight NUMECcould be experiencing raffinati possibly There wer e of course seven days a week during and it that enriche d uranium-235 kimwi pe three said into the river NUMEC ' s records indicated could have been lost Ramey noted it was possible manner NUMEC's rec ords c ould be in e rr or Mr Shapiro there method employed and it was unlikely that was a double the records was checked was kept solids were erroneous Mr Klein routinely in the holding in the columns tanks but noted inquired Mr Shapiro was sampled routinely raffinate it checking replied to another holding tank and checked before being the that liquid the solids were then r emoved f or buria l and the filtrate that whether He added the to precipitate the that in this that agreed near The was moved dumped into the river In answe r to a question said both the production measurements f or materials method of computing by operation by Commissioner and health balance the materials He said he instituted -3- physics Tape Mr Shapiro personne l too k Mr Shapiro described balance by areas this technique rather because the than the other accounting stressed th a t at the had a significant ordered all burial April burnable time he learned of this 1964 Since with an average wi t h burnable waste during material the last effect e st imated year to 500 drums such as those primarily 27 000 to be contained enrichment pounds of combustible waste was not relevant di scussio n because of its l ow enrichment that involved However Mr Shapiro in the burnable that there waste and it were b J ried · discussion Mr Shap iro noted • - - ' C 1V J 'cj - of the number of buried drums there were a total of which had been on hand and used purchased Mr to the mater i al under 27 0 00 pounds of such waste in the drwns During a brief were from the 17 000 operat i on did demonstrate amount of uraniwn was now ca lculated waste by the Chainnan pounds of burnable was a sizeable materials dr ums the mate ri a l re covered out the recovery had been in low enrichment question said of 10% because procedure in the buried In resp onse to a further pointed filled by the Chairman Mr Shapiro when the recovery added that Shap ir o ag re e d that has been f ollowe d of 10% had been recovered had an average NUMECwas handling Mr Shapiro c ombusted which had been bur i ed In answer to a question the recovered he fr om which $111 000 worth of enrichment This much waste was equivalent NUMEC 17 000 pounds of suc h time waste had bee n combusted material the waste This orocedure that that in the burn able was te waste halted collected Mr Shapiro it was possible amount of material and al l material since method was so time consuming specifically for An additional the accumulation -4- of 905 drums 555 350 drums were of the burnabl e waste The Chairman inquired if fr om the WANLcontract that -- 905 drums were filled all work the drums were filled during Mr Shapiro during containing answe r to a question Chairman any records Mr Shapiro which would indicate solely waste was that replied for that if this as it a ount Mr Shapiro stressed was recovered on the material until agreed Mr Shapiro suggestion mate rial time f or the alternatives c ourse stated that unaccounted waste in full in in cash or in material suggestion on hand the AEC use charges Commissioner Ramey was only one of a the Commission had not yet of action in accordance the AEC would receive as it would seem from the buried was re covered the Chairman's on a specific it NUMECto apply materia l and would be paying it of The th at Nl IMEC did have the material waste number of possible the recovery for NUMECto pay the bill of time either in the buried out that for NUMECat this against I t would seem appropriate NUMEC the specific were the case of urani um allowing a reasonable said of the Atomic Energy Commission or NUMEC AEC to bill the bill In with the WANLcont r act for 52 kilograms pointed He sa id 1 s r esponsibility was NUMEC it suggested appropriate of He admitted from the WANLcontract The Chairman asked if re sponsibility Mr Shapiro all number of drums buried by the Chairman number of drums associated the buried that not a specif ic number f or drums buried only waste material had not kept replied by work on Navy fuels only to give the total the period with material the c ont ra ct period some waste was generated it was possible o·· CC3 _ ' -J J VA with the Chairman 's the same amount of dollars would under a scheme which would allow Nllil EC -5- or addit i onal time to recover if the waste materia l the Commission sh ould pursue the Chairman ' s suggestion it would place NUMECin a very difficult of meeting balance its not balance payable the column company 's present uranium position liabilities in terms He said NUMECcould the l edge r by showing the amount owed in the 52 kil ograms of material column as against assets stressed sheet In addition This would not be compatible auditing his belief that system company could account even additiona the amount of and he could demonstrate He noted that NUMEChad paid AEC up to $1 million taken with However Mr Shapiro f or al l of the material l amounts company had never on hand in he could prove the proper could be r ecovered accounts a position that and possibly 1n earlier years for material that the losses The it would not pay for such losses Commissioner Ramey said it appeared been somewhat surprised that the material buried ·raste in this its in question contained Mr Shapiro had contention explain said NUMEChad had some difficulty accountability system time maintaining s ignificantly in the his actions embarrassed people In the past of the burie d waste to make such an announcement was completely out of order on the jo b and year have told however the · and imp 9 ved _P 0 __ ____ AECstaff However he was because to allow thi s type -6- past at the time of the AEC inven- 1965 he could and should of the existence in the the company had a li ty system had been reshaped He commented that in April He noted qualified ch anges had to be made company ' s accountabi tory recent was actually that AEC staff regard difficult several by Mr Shapiro's He suggested Mr Shapiro with that he kne it of material in these amounts to be buried noted that such an action c onfidence in the but stressed honest in combustible the company's one and there that NUMECdeveloped generally to deceive days of scrap a new more accurate which was eventual 's agreed pa s t rec ord was a complete l y was no intention i n the early Mr Bloch f oste r staff Mr Shapiro company that He re ca lled could h ardly waste the Commission recovery operations method of recovering l y ad opted by others in the scrap materia l recovery program Mr Shapiro at all sure kil ogra ms commented that that NUMECshould of material of discrepancies at the present still He recalled shown on t he invoice two that agreement He noted that on the total i t was poss ible ana lysi s were possible uranium cont ent that significant biases The Chairman said that und e r discussion to the Commission r ep li e d that it in the NERVAelement r lr Shapi r o stressed when it buried recalled element there as 5 perc ent on such it certa inly that the 52 kil ograms have been deliv e red batches Mr Shapil•o r-- - -_ µ - that NUMECdid make a se ri ous error did not inf orm the Corranission of the material waste However mn mc did have an honest in one i n stance recovery He pointed record from the Bettis actual ly containe d as much a s 1 3 kilograms had indica ted in the NUMEChad r epo r ted to AEC that deli vere d f or scrap had to an investigation might already was possible by in only were as large He asked if Nm ECfelt matte r of material were examples out of 100 lots seemed desira bl e to gi ve consideration of that there for 52 and the amount actua lly With the others discrepancies He said a cco untable between the amount of mate ri a l estimated NUMECto be in the NERVAelements been full be held time he was not our also that He a fuel Laboratory more U-235 than Bettis in the past six years -7 - @ffl KU ' NUHEChad handled severa l thousands enrichment and h i gh enrichment crepancies in ceasurements of kilogr ams of low material with very small dis- ··- -· r_ - l ---· - - -- r -- Mr Bloch the subject said that with ofc nfidence regard in the Mr Shapiro he had used poc judgment by not telling ex istence in the buried of tr e material stres ed thst t is attitude t o · 2 -c the In r espo se said did n ot indicate H'v'r ·' ECr 26 egun recovery dru m had teen c ened unhappy existence beca' lse the health of s h quantities reco ended tr e for drums agreed of the Howeve r NFMECheld that he a casual of such material by Corrmissioner of the buried and it was evident of materia l as contained remarl bn the Commission that accountability to a question earlier company he had not meant to 1 u- -IB had been dishonest imply that to his in 1 t physicists -8- this should of rr ater ial burial dru ns that He said Tape a signifi He said cant one amount made hi m doubly have known of the and shoul d not have With re gard to timing said it was the company's of the recovery intention operations until hop ed that by that t ime a ll ha ve been exhuoed He said to continue the ground began to fr eeze given because could be combusted it of the material of the buried a definitive which it s elf Mr Sha piro recovery He said containers it was would sch e dule could not be was de pe nden t upon the rate depended the mat e ri al upon the enrich ment inv olved Commis sio ner Ramey noted that AEC staff schedu le it to work with NUMECstaff should be poss ible in establishing f or an agreed pr ocedu r e to obt ain a su it ab le sample from which a dete rmin a tion 1 of the amount of mate ri al conta ined in the buried mi ght be made problems Mr Shapiro in acquiring agreed but said such a s ample would be to rec ove r and rework all the r e would be The best meth od of course of t he materia l of that hi s company would keep t he Conuni ssion work as dili ge ntly as possible was involved pro ble ms in ot her con tr ac t scrap recovery 1 its r ecovery on i ts own m2 terial waste say with to th e Tape sa id he cou l d understand posit ion bt t woul d pe r sonally knew prec i sely and f ac ili ties work going whil e it was performing Cor t i ssioner NUMEC ope rati ons keep the co nercial '· and He added the Specifically in a usi ness sen se would have t o time - share operations Short informed on the project Company would ex peri e nce other dr luns t he compa 1 s _ D - J_ _ -11V ' f ee l mol'e comfor tabl e if he how much mat 8rial He tho ught it was contained more J mportant that in the burie d l' lJMECbe able to cc1f i de nce t h at tr e mat-zri al was in a ce r ta in l ocat ion than t o worry im nedi atel y abo ut th e outco me of othe r busin e ss ventures -9- - In response to a question access to the recovery said mombers there In reply operations of his would continue by Commissioner staff by AEC staff it was now estimated that the recovery operation it would cost $100 000 Mr Shapiro he had known it tions He recalled to happen in other one example inv olving as silicone carbide may in fact not be recoverable the example chosen which represented ad ded that while in this well known installathe burial a fairly of mate rial large l oss and Mr George pointed by Mr Sha pi ro involved said for recovery would not condone what has now happened matter and by the Chairman Mr Shapiro of the 52 kil ograms of material he certainly Mr George were even now on location throughout to a question Ramey regarding out that a Bettis contract and was an in-hou s e operation The Chairman noted several obtained problems this the Commission could be faced in this particular matter He pointed contract It was possib le a competitor it could have performed full all that of the contract during NUMEChad out that a competitive could charge rec overy of the material in the contract through with bid f or a higher prov i sions including the t me pe ri od specifi µ _ -· - Commissione r Ramey asked if the settlement the NUMECcontract c ontracts was one of the historical Mr George replied it such a provis i on had been included In reply said to a further question the 180 day period to NUMEC In fact meeting cost it in the scrap by Commissioner had paid penalties _5 in 1962 th at r ecove ry contracts Ramey Mr Shapiro presented before 4 of such had only been since had on occasion • __ _ - requirement provisions ed a problem f or not the ccntractt erms -10- The Chairnan claim that its the costs those bid associated estimated competitor point that was valid since with the contract by NUMEC Mr Shapiro of simi l a r contract or to place the l osse s that completion actions in -house scrap interested enriched contract recovery in the Headquarters should assumed that transferred under He stressed NUMEChad started of approva l the material that before an ex te nsive NUMEC had become Additionally of the remaining He said of such a transfer its He stressed the company pr ovided that He said P EC the company had could have been routinely the Supply Agreement which would have carried with it a termination charges during the past g the book inv e ntory give 1f a any of the provisions the Supply Agreement had Oak Ridge approval that than in the posit i on of suffering program in transferrin uraniumto wrongly itself it · wns now clear NUMECcould pr ovide many were under dis cuss ion of the might were higher replied was n ot NUMEC's inten tio n to flaunt the contract a competitor which proved to be unsuccessful shou ld make such a claim examples it higher his of NUMEC's l ower bid in the light that stressed of the WANLcontract time the material remained and payment of use in the possession of NUMEC Mr return final Bloch commented that or the payment of all delivery the NUMECcontr act required material of the product been extended time attempte d to work out a method by which material could be verified the material the to WANL · He· noted the 180 dcy ·period had already staff since by 180 days after the April as existing c ould then be transferred -11- 30 1965 During if that the at the NUMECfacilities to the Supply Agreement However to date kilograms sta ff r emain ed unconvinced of mate rial in question that the 52 could be verified as existing at the NUMECfacility Mr Gray exp l aine d the difficulty NUMECwould experience if the Conunission should now pr e sent it with an in vo i ce for the material NUMEC's aud i tors find great if this due He conc lu ded that difficulty developing an acceptable woul d finan ci a l r ep ort l oss of government pr oper ty were r e por t ed Mr George said actually existed experience the bas ic quest ion was whether at NUMEC He stressed over the years been allowed had not been AEC's such a quantity to remain in burnab l e waste by Mr Shapiro establish that it the materia l of material had in the manner described If such a claim were now all owed i t would a pre ce dent r elevant to other NUMEC audit or s should be made aware that contract ors He th ough t the c ont r act terms had n ot bee n met The Chairman inquired the b urn ab le waste less 1 about NUMEC s posit i on in the event was exhumed and an amount su bstantia than 52 kil ograms were f ound Mr Gray resp onded that NUMECwould be in a pos i tio n to pay f or all material i f th e re had been a defin itive addit i onal quantities burn a ble wast e t h at if of be firmly the material demonstration were not c ontained that in the s uggest re ga r din g the l occt i on · LC i 1--' - C YES in the · bu nable wa s t e co uld estab l ished the AEC shou ld be willi ng to al l ow a to the Supp ly Agreement had si gnificant within unrecovered Mr Gray add e d he would also NUM ECI s hy pot he sis al l of tr ansfer of material lly ly impr oved its the pa st year He reiterated materials Mr Keller that NUMEC a cc ount a bility procedures commented th a t some improve- ments had been made but he would not say they had been si gnificant There were still many impro vements that could be accomplished -12- ' » · '- -····r' - -·- -- - _ ' · Mr Gray pointed out that NUMEChad spent amount of time on the recovery private work orders for scrap settlement In response if immediately for 12 months To date kilograms Mr Shap iro inventory reiterated that inquired collected 52 waste for him to understand sought - why He waste hin g t h e hypothesis was in f act contained that was based that on their Mr Gray stated would be required to make a significant meth ods in order to show such material Ramey noted there special the past year private NUMECcould books as an asset to the Commission at the time the material from the scrap regarding during in view of the present of material Mr on the 17 00 0 pounds it might be possible the 52 kilograms that NUMEChas ascertained waste had been buried in 500 barrels legislation was recovered evidence in the buried on what evidence the evidence replied which cauld be resold obtained based transfers year NUMEChad burned its being Mr George suggested ownership staff evid ence that good data f or establis 27 000 pounds of burnable reflect would not be due waste Mr Klein of material Agreement was n o te chnic a l evidence for the past of the material in the buried mmership to the Supply technical were contained there and h ad collected Shapiro Mr George said technically it was difficult Mr Geor ge believed that by Mr Bloch had not received said NUMEC on the 52 kilograms However Mr George said of material th at a ll the Commission forced to the Supply Agreement on technical staff He said had now be n received were to be transferred the next of material up if to a question the material materials recovery These would have to be given to make an early of scrap a considerabie would be problems financial nuclear reporting materials -13- that change in its as an asset NUMEC OZ A C -i • S bookkeeping Corrrnissioner with respect to private by companies Which had Following to recover propose further the material immediate to recover Mr Shapiro transfer Supply Agreement If rem arks regarding at the end of that said during the next time all material given t o give was in fact twelve-months the first recovered the material technical evid e nce that to make financial were excavated that the rest of the waste NUMECwould be there quickly an imals traveling He said the buried of the material NUMEChad not materia l to provide NUMECwould be prepared to a ques t i on by Mr George difficulties It was likely waste would be scattered Mr Shapiro if that the burial through the area materials said pit s ome of the burnable around the countryside by the wind and could become contaminated were in bags and in drums many of which would pr obab ly have been crushed burial portion or found sufficient the company would experience of and that twelve-months settlement In response only a portion to rec over all it was all period period evidence in the burnable an additional However if after technical immediately had been re cove r ed If in that to to the twelve-months of the material has been recovered was sufficient material NUMECwould proceed it would be r etu rned to the Commission the material he would like of the remaining Additionally the mater ial NUMEC's willingness and opened during the process After further brief would submit a written remarks the Commission not ed NUMEC pr oposa l regarding the recovery operation includin g the conditions of fin a l settlement and of transfer to the Supply Agreement and would consider inve st igating possibility delivered of significant bia ses on the analyses by NUMECfor NERVAfuel of material elements F T Hobbs Acting the Secretary -14-