96-27028. Sale of Surplus Natural and Low Enriched Uranium Finding of No Significant Impact

[Federal Register Volume 61, Number 205 (Tuesday, October 22, 1996)]
[Notices]
[Pages 54780-54781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27028]



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DEPARTMENT OF ENERGY


Sale of Surplus Natural and Low Enriched Uranium Finding of No 
Significant Impact

AGENCY: U.S. Department of Energy.

ACTION: Finding of no significant impact.

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SUMMARY: The U.S. Department of Energy (DOE) has prepared an 
Environmental Assessment (EA) evaluating the impacts associated with 
the proposed sale or disposition of surplus uranium, both natural and 
low enriched, stored at the Department's gaseous diffusion plants in 
Piketon, Ohio, and Paducah, Kentucky. This EA, entitled DOE Sale of 
Surplus Natural and Low Enriched Uranium, was issued in draft form for 
public comment. The availability of the draft EA was announced in the 
Federal Register on August 12, 1996 [61 FR 41,776], with a thirty-day 
comment period extending through September 11, 1996. The Department 
received 14 letters commenting on the draft EA. These comments were 
evaluated and changes have been incorporated into the final EA as 
appropriate. The comments and the Department's responses to them are 
included as an appendix to the EA.
    The EA evaluates the impacts of selling uranium from the 
Department's inventory and uranium to be transferred to DOE. The 
uranium from the Department's inventory being considered for sale or 
disposition in this EA was declared surplus to national security needs 
and therefore can be used for commercial purposes. In addition to this 
uranium, DOE is proposing to sell ``Russian'' natural uranium 
transferred from the United States Enrichment Corporation (USEC) 
pursuant to the USEC Privatization Act, which requires the Secretary to 
sell this material within seven years of the date of enactment (April 
26, 1996).
    Based on the analysis in the EA, the Department has decided to 
proceed with the sale or disposition of the surplus uranium consistent 
with the proposed action. In addition, DOE has determined that the 
proposed action does not constitute a major Federal action 
significantly affecting the quality of the human environment within the 
meaning of the National Environmental Policy Act (NEPA) of 1969 (42 USC 
4321 et seq.). Therefore, the preparation of an Environmental Impact 
Statement (EIS) is not required.

FOR FURTHER INFORMATION CONTACT: Copies of the Environmental Assessment 
for the DOE Sale of Surplus Natural and Low Enriched Uranium (DOE/EA-
1172) are available from: Mr. John F. Kotek, Office of Nuclear Energy, 
Science, and Technology, NE-1, U.S. Department of Energy, 1000 
Independence Avenue, SW, Washington, DC 20585. Mr. Kotek may also be 
reached by calling [phone].
    For further information regarding the DOE NEPA process, contact: 
Ms. Carol M. Borgstrom, Office of NEPA Policy and Assistance, EH-42, 
U.S. Department of Energy, 1000 Independence Ave, SW, Washington, DC 
20585. Ms. Borgstrom may also be reached by calling [phone], or 
by leaving a message at [phone].

SUPPLEMENTARY INFORMATION:

Proposed Action

    DOE proposes to sell approximately 35.7 million pounds of natural 
uranium equivalent (U3O8(e)), in the form of uranium 
hexafluoride. The uranium available for sale under this action consists 
of the following types: 20.3 million pounds of U3O8(e); 1.2 
million pounds of U3O8(e) in the form of 4.5 percent low 
enriched uranium (LEU); and 14.2 million pounds of ``Russian'' 
U3O8(e) 1 that DOE will receive from USEC pursuant to 
the USEC Privatization Act.
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    \1\ This 14.2 million pounds of U3O8(e), stored at the 
Portsmouth Gaseous Diffusion Plant, is associated with the Russian 
Highly Enriched Uranium (HEU) Agreement. Under this Agreement, 
highly enriched uranium from Russian nuclear weapons is blended down 
in Russia and shipped to USEC for use in satisfying its enrichment 
contracts. Under the terms of these contracts, utility companies 
send natural uranium to the gaseous diffusion plants to be enriched. 
Since USEC started receiving Russian LEU under the Russian HEU 
Agreement, some of its contracts have been and will continue to be 
filled with the already-enriched Russian material. As a result, some 
of the natural uranium supplied by the utilities remains unenriched. 
It is being held in storage by USEC and is deemed by law to be of 
``Russian'' origin. As a result, this ``Russian'' uranium is subject 
to restrictions on its sale in the United States under the USEC 
Privatization Act and the Russian Uranium Antidumping Suspension 
Agreement.
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    All of the uranium is located at the gaseous diffusion plants at 
Portsmouth, Ohio, and Paducah, Kentucky. Sale of this surplus uranium 
would take place between 1996 and the end of 2004, depending upon 
market conditions. In order to sell uranium from DOE's inventory, the 
Secretary must determine that the sale will not have an adverse 
material impact on the domestic uranium industry. Other conditions 
apply to the sale of the 14.2 million pounds of ``Russian'' U308(e). 
The uranium would be sold to buyers for subsequent enrichment, if 
needed, and fabrication into commercial nuclear power fuel. Potential 
buyers include USEC, over 60 domestic and foreign utilities, and 
various uranium traders and producers. The proposed action is fully 
described in the EA.

Alternatives Analyzed

    The EA analyzed in detail the following alternatives to the 
proposed action:
    1. Selling only the transferred ``Russian'' uranium;
    2. Selling all of DOE's inventory of surplus natural and low 
enriched uranium for domestic use in a single year, selling half of the 
``Russian'' uranium in 1996 for future use as the ``Russian'' component 
in matched sales, and selling the remainder of the ``Russian'' uranium 
in 2001 for domestic use in 2002 and later;
    3. Selling all of DOE's inventory of surplus natural and low 
enriched uranium for foreign use either in a single year or over a 
number of years between 1996 and 2004, and selling half of the 
``Russian'' uranium in 1996 and the remainder at the same time as the 
DOE surplus inventory uranium; or
    4. Taking no action, which would result in indefinitely storing the 
uranium or holding it for future use in other DOE activities such as 
for blending down highly enriched uranium.

Environmental Consequences of the Alternatives

    The EA analyzes the impacts of selling or disposing of the uranium 
in terms of radiological effects on uranium industry workers and the 
public, socioeconomic impacts on the domestic uranium industry, 
transportation impacts from shipments of uranium to and from the 
enrichment plants, accident analyses at various facilities, 
environmental justice considerations, cumulative impacts and avoided 
environmental impacts.
    The EA demonstrates that the proposed action would not have a 
significant impact on collective radiological doses to workers or the 
public as the result of transportation or normal operations. In some 
cases, including the proposed action, there would be a decrease in 
radiological dose due to reduced handling and transportation 
activities. Sale of all of the material in one year could result in a 
substantial reduction in the collective radiological dose to workers in 
the mining and conversion industries. Only if the uranium were all sold 
for foreign end use and shipped abroad for enrichment would there be an 
increase in risk due to transportation. The analysis shows a slight 
increase in dose to port workers and cylinder handlers at

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the gaseous diffusion plants under this alternative. Impacts resulting 
from a transportation accident and effects on the global commons are 
analyzed and shown to be minimal.
    The analysis of severe accidents for all alternatives indicates 
that potentially fatal exposures to hydrofluoric acid (HF) could result 
if a cylinder were to fall and be punctured while its UF6 contents were 
temporarily in liquid form (heated) for purposes of sampling; however, 
the probability of such accidents is very low. In addition, 
administrative and procedural controls are in place at Portsmouth and 
Paducah to protect against such accidents, and emergency response 
procedures have been established to reduce or eliminate potential 
health effects to workers, neighboring populations and the environment.
    In terms of socioeconomic effects, the greatest impact to the 
domestic uranium industry would occur under Alternative 2, selling all 
of the Department's surplus uranium for domestic use in a single year. 
This alternative could result in an estimated 46-53 percent decrease in 
domestic employment in the uranium production industry or a projected 
decrease of from 295 to 410 workers nationwide for that one year. The 
potential socioeconomic impacts of the proposed action would be 
substantially less than those anticipated from Alternative 2, because 
the sale of uranium in the proposed action would occur over a number of 
years, thereby minimizing any potential impacts on the domestic uranium 
industry. Under the proposed action, the overall employment level will 
still be expected to increase above 1995 employment levels.
    In terms of cumulative impacts, the uranium that would be 
introduced into the market under the proposed action, when added to the 
uranium available as a result of other government actions considered in 
the EA (e.g., U.S. HEU blend down, Russian HEU Agreement, etc.), would 
not significantly affect the domestic uranium market and industry 
because demand is projected to increase for the near-term and DOE's 
sales are dependent upon existing market conditions. In addition, for 
DOE to sell the uranium from its inventory (which is all but 14.2 
million pounds of the 35.7 million pounds proposed for sale or 
disposition), the Secretary must determine that the sale will not have 
an adverse material impact on the domestic uranium industry. Such 
determinations may be made on a periodic basis (for example, for all 
contemplated sales over a certain period), as opposed to a sale-by-sale 
basis. The requirement for a determination prior to sales of inventory 
uranium operates as a mitigation measure against potential adverse 
material impacts on the domestic uranium industry. Thus, there will be 
no significant adverse cumulative impacts from the proposed action.

Finding

    Based upon the information and analyses in the EA (DOE/EA-1172), 
the Department of Energy has determined that the proposed sale or 
disposition of the surplus uranium at Portsmouth and Paducah does not 
constitute a major Federal action significantly affecting the quality 
of the human environment within the meaning of the National 
Environmental Policy Act of 1969. Therefore, the preparation of an 
Environmental Impact Statement on the proposed action is not required.

    Issued in Washington, D.C. this day of October 1996.
Terry R. Lash,
Director, Office of Nuclear Energy, Science and Technology, U.S. 
Department of Energy.
[FR Doc. 96-27028 Filed 10-21-96; 8:45 am]
BILLING CODE 6450-01-P