96-17432. Notice of Intent to Prepare an Environmental Assessment on the Proposed Sale of Surplus Natural and Low-Enriched Uranium  

  • [Federal Register Volume 61, Number 132 (Tuesday, July 9, 1996)]
    [Notices]
    [Pages 36042-36043]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-17432]
    
    
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    DEPARTMENT OF ENERGY
    
    
    Notice of Intent to Prepare an Environmental Assessment on the 
    Proposed Sale of Surplus Natural and Low-Enriched Uranium
    
    AGENCY: Department of Energy.
    
    ACTION: Notice of Intent.
    
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    SUMMARY: The Department of Energy (DOE) announces its intent to prepare 
    an Environmental Assessment (EA) on the sale of natural uranium and 
    low-enriched uranium located at the gaseous diffusion plants in 
    Portsmouth, Ohio, and Paducah, Kentucky. DOE will prepare the EA 
    pursuant to the National Environmental Policy Act of 1969 (NEPA), the 
    Council on Environmental Quality's NEPA regulations, and the 
    Department's NEPA regulations. The EA will describe: (1) the purpose 
    and need for action by the Department; (2) the Department's proposed 
    action; (3) alternatives (including a no-action alternative) to the 
    proposed action; and (4) the potential impacts of the proposed action 
    and alternatives.
    
    ADDRESSES: Questions regarding this Environmental Assessment should be 
    addressed to: Mr. John Kotek, Office of Nuclear Energy, Science and 
    Technology, NE-1, Department of Energy, 1000 Independence Ave., SW, 
    Washington, DC 20585. Requests to receive copies of the draft EA, when 
    available for review, should also be directed to Mr. Kotek. Mr. Kotek 
    may be contacted by telephone at (202) 586-6823, or by facsimile at 
    (202) 586-0698.
    
    DATES: DOE anticipates that it will issue a draft EA by July 30, 1996, 
    which it will forward for review by affected states, Indian tribes, and 
    other parties who have expressed an interest in the proposed action or 
    requested a copy of the draft for review. The Department will accept 
    comments on the EA for 30 days following issuance of the draft EA.
    
    FOR FURTHER INFORMATION CONTACT: For general information on DOE's NEPA 
    process, contact Ms. Carol M. Borgstrom, Director, Office of NEPA 
    Policy and Assistance, EH-42, Department of Energy, 1000 Independence 
    Ave. SW, Washington, DC 20585. Ms. Borgstrom may be contacted by 
    leaving a message at (800) 472-2756 or by calling (202) 586-4600.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        DOE owns substantial amounts of natural uranium and low-enriched 
    uranium (LEU) in excess of the Department's current needs. The 
    Department has declared about 21.5 million pounds of these materials to 
    be surplus. About 20.3 million pounds of these materials contain the 
    uranium isotope U-235 in concentrations (0.711 percent) equivalent to 
    natural uranium; about 1.2 million pounds contain U-235 concentration 
    of 4.5 percent, and are therefore classified as LEU. The LEU is stored 
    at the gaseous diffusion plant in Portsmouth, Ohio; the 20.3 million 
    pounds of natural uranium are stored at Paducah, Kentucky. In addition 
    to these 21.5 million pounds, the Department will receive title to 
    another 14.2 million pounds of natural uranium associated with the 
    United States/Russia Highly Enriched Uranium Purchase Agreement 
    (Russian HEU Agreement).1 These 14.2 million pounds are located at 
    the Paducah gaseous diffusion plant and will remain under the control 
    and ownership of the United States Enrichment Corporation (USEC) until 
    ownership is transferred to DOE before the end of 1996.
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        \1\ In the U.S./Russia HEU Agreement, the United States and 
    Russia agreed that USEC, as the United States' Executive Agent, 
    would purchase low-enriched uranium derived from 500 metric tons of 
    highly enriched uranium extracted from nuclear weapons dismantled in 
    Russia.
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        Congress has imposed a number of requirements on the sale and use 
    of these materials. Section 3112(b)(1) of the United States Enrichment 
    Corporation Privatization Act of 1996 (USEC Privatization Act, Public 
    Law 104-134) requires that DOE sell within seven years the 14.2 million 
    pounds of natural uranium associated with the U.S./Russia HEU 
    Agreement. Under section 3112(b)(2), DOE may sell this natural uranium: 
    (1) for overfeeding of enrichment operations in the United States at 
    any time; (2) for end use outside of the United States at any time; (3) 
    to the Russian Executive Agent in 1995 and 1996 for use in matched 
    sales pursuant to the Suspension Agreement; 2 or (4) in 2001 for 
    end use in the United States beginning in 2002 in amounts not to exceed 
    3 million pounds annually.
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        \2\ The Suspension Agreement, also referred to as the 
    ``Agreement to Suspend Investigation on Uranium from the Russia 
    Federation, as amended,'' settled an investigation into whether 
    Russia was dumping uranium into the United States market. It 
    established a mechanism known as ``matched sales arrangements'' in 
    which imports of Russian uranium are linked with sales of uranium 
    newly produced in the United States. In a matched sale, one-half of 
    the uranium sold is Russian and the other one-half is new domestic 
    production. There are annual quotas on the amount of matched sales 
    through 2004, when the Suspension Agreement expires.
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        As to the 21.5 million pounds of natural uranium and low-enriched 
    uranium DOE already has in its inventory, Congress did not mandate
    
    [[Page 36043]]
    
    that the Department sell these materials within a particular period of 
    time. However, Congress anticipated in the Energy and Water Development 
    Appropriations Act of 1996 that DOE would sell about $35 million worth 
    of these materials in fiscal year 1996 and use the proceeds to offset 
    some of the costs of maintaining and improving the gaseous diffusion 
    plants. The Department believes that it will need to sell additional 
    amounts of these materials beginning in 1996 in order to continue 
    financing maintenance and other activities at the gaseous diffusion 
    plants.
        Congress imposed three conditions on the sale of material from 
    DOE's inventory in section 3112(d) of the USEC Privatization Act; two 
    of these conditions are relevant to the 21.5 million pounds of 
    inventory material considered in this Environmental Assessment. Before 
    selling materials from DOE's inventory, the Secretary of Energy must 
    make a determination that: (1) the sale will not have an ``adverse 
    material impact'' on the domestic uranium industry and (2) the 
    Department will receive a price that is at least equal to the fair 
    market value of the materials.
    
    Proposed Action
    
        DOE proposes to sell the 21.5 million pounds of surplus material in 
    its inventory and the 14.2 million pounds of material associated with 
    the Russian HEU Agreement that the Department will receive from USEC. 
    All of the 35.7 million pounds are in the form of uranium hexafluoride 
    (UF6). DOE proposes to sell these 35.7 million pounds of uranium 
    over six or more years beginning in 1996. The potential buyers are 
    entities that already purchase or manage inventories of uranium for use 
    in commercial applications: USEC, utilities, convertors, brokers and 
    uranium producers. Accordingly, the proposed action would not result in 
    new or different uses of uranium.
        DOE would comply with sections 3112 (b) and (d) of the USEC 
    Privatization Act in making the sales it is proposing. In 1996, DOE 
    proposes to sell some of the 14.2 million pounds it will receive under 
    the Russian HEU Agreement to the Russian Executive Agent, or the 
    Agent's representative, for use in matched sales pursuant to the 
    Suspension Agreement. The Department would sell, to the extent 
    practical, the remainder of this 14.2 million pounds for end use 
    outside the United States or for overfeeding the gaseous diffusion 
    plants during the period 1997 through 2000. Any remaining material 
    would be sold in 2001 for consumption by domestic end users beginning 
    in 2002 at a rate not to exceed 3 million pounds per year. As to the 
    21.5 million pounds from DOE's inventory, the Department proposes to 
    sell the one million pounds of LEU in 1996 in order to obtain the 
    revenue Congress anticipated DOE would receive in the Energy and Water 
    Development Appropriations Act of 1996. DOE would sell the remaining 
    20.3 million pounds of inventory materials during the period 1997 
    through 2002 in order to continue financing maintenance and other 
    activities at the gaseous diffusion plants. All sales of inventory 
    materials would be contingent on the Secretary making the 
    determinations required by section 3112(d)(2) of the USEC Privatization 
    Act.
        The sales proposed and evaluated in this Environmental Assessment 
    would be in addition to sales evaluated in two other NEPA analyses: (1) 
    the Disposition of Surplus Highly Enriched Uranium Final EIS (DOE/EIS--
    0240, June 1996), and (2) the Environmental Assessment for the Purchase 
    of Russian Low Enriched Uranium Derived from the Dismantlement of 
    Nuclear Weapons in the Countries of the Former Soviet Union (USEC/EA--
    94001, DOE/EA--0837, January 1994). The Department will analyze the 
    cumulative effects of the sales proposed in this environmental 
    assessment, those proposed in the two other NEPA analyses, and those 
    scheduled under the Russian HEU Agreement and the Suspension Agreement.
    
    Alternatives
    
        DOE has identified alternatives to its proposed sale of these 
    materials, and may identify others during the preparation of the EA. 
    All alternatives will be evaluated against the purpose and need for 
    action by the Department, and those that are reasonable and meet the 
    need for action by the Department will be evaluated in the EA.
    
    No Action
    
        The Council on Environmental Quality's NEPA regulations require 
    that federal agencies analyze the impacts of not taking the proposed 
    action (the ``No Action Alternative''). In this case, the No Action 
    Alternative would be that DOE would continue to store the 35.7 million 
    pounds of uranium at Portsmouth and Paducah rather than selling it.
    
    Alternatives that Satisfy the Need for Department Action
    
        Alternatives that are under consideration for evaluation in the EA 
    include:
        (1) Different schedules for the sale of this uranium; and
        (2) Selling amounts other than 21.5 million pounds of inventory 
    material.
    
    Preliminary Identification of Potential Environmental Impacts
    
        The Department has tentatively identified the following potential 
    impacts for evaluation in the EA. This list is not intended to be all-
    inclusive or to predetermine the potential impacts of any of the 
    alternatives.
        (1) Potential health and safety impacts to on-site workers and to 
    the public from storage, handling, and transport of uranium, including 
    accidents;
        (2) Socioeconomic impacts on the uranium industry in the United 
    States;
        (3) Potential cumulative impacts of these and other sales; and
        (4) Considerations of environmental justice.
        DOE anticipates that it will issue a draft EA by July 30, 1996, 
    which it will forward for review by affected states, Indian tribes, and 
    other parties who have expressed an interest in the proposed action or 
    requested a copy of the draft for review. The Department will accept 
    comments on the EA for 30 days following issuance of the draft EA. 
    Based on the EA and any comments it receives, DOE will then determine 
    whether it will prepare an environmental impact statement or issue a 
    finding of no significant impact.
    
        Issued in Washington, D.C., this 1st day of July, 1996, for the 
    United States Department of Energy.
    Ray A. Hunter,
    Deputy Director, Office of Nuclear Energy, Science and Technology.
    [FR Doc. 96-17432 Filed 7-8-96; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Published:
07/09/1996
Department:
Energy Department
Entry Type:
Notice
Action:
Notice of Intent.
Document Number:
96-17432
Dates:
DOE anticipates that it will issue a draft EA by July 30, 1996, which it will forward for review by affected states, Indian tribes, and other parties who have expressed an interest in the proposed action or requested a copy of the draft for review. The Department will accept comments on the EA for 30 days following issuance of the draft EA.
Pages:
36042-36043 (2 pages)
PDF File:
96-17432.pdf