(5) Records of transfer of special nuclear material to other persons shall be maintained by the licensee who transferred the material until the Commission authorizes their disposition. Records required by paragraph (e)(1)(v) of this section shall be maintained for five years.

(6) Records of disposal of special nuclear material shall be maintained in accordance with § 20.401(c) of this chapter.

(c) Each licensee who is authorized to possess at any one time special nuclear material in a quantity exceeding one effective kilogram of special nuclear material shall establish, maintain, and follow written material control and accounting procedures which are sufficient to enable the licensee to account for the special nuclear material in his possession under license.

(d) Except as required by paragraph (e) of this section, each licensee who is authorized to possess at any one time and location special nuclear material in a quantity totaling more than 350 grams of contained uranium-235, uranium-233, or plutonium, or any combination thereof, shall conduct a physical inventory of all special nuclear material in his possession under license at intervals not to exceed twelve months.

(e) Effective May 6, 1974, each licensee who is authorized to possess at any one time special nuclear material in a quantity exceeding one effective kilogram of special nuclear material and to use such special nuclear material for activities other than those involved in the operation of a nuclear reactor licensed pursuant to Part 50 of this chapter or those involved in a waste disposal operation; as sealed sources; or as reactor irradiated fuels involved in research, development, and evaluation programs in facilities other than irradiated fuel reprocessing plants, shall:

(1) Maintain procedures which shall include:

(i) Procedures for tamper-safing containers or vaults containing special nuclear material not in process, which include control of access to the devices and records of the date and time of application of each device to a container or vault; unique identification of each such item; inventory records showing

the identity, location, and quantity of special nuclear material for all such items; and records of the source and disposition of all such items;

((ii) Records of the quantities of special nuclear material added to or removed from the process;

(iii) Inventory records for the quantity of special nuclear material in proc

ess;

(iv) Unique identification of items or containers containing special nuclear material in process; inventory records showing the identity, location, and quantity of special nuclear material for all such items; and records of the source and disposition of all such items;

(v) Documentation of all transfers of special nuclear material between material balance areas to show identity and quantity of special nuclear material transferred;

(vi) Requirements for authorized signatures on each document for transfer of special nuclear material between material balance areas; and

(vii) Means for control of and accounting for internal transfer documents.

(2) On or before May 6, 1974, and thereafter as necessary to comply with the requirements of paragraph (e)(3) of this section, perform a physical inventory of all special nuclear material in his possession in compliance with the criteria for physical inventories set forth in paragraph (f) of this section.

(3) Conduct physical inventories made in accordance with the criteria for physical inventories set forth in paragraph (f) of this section at intervals determined from the start of the beginning inventory to the start of the ending inventory not to exceed:

(i) 2 calendar months for plutonium except for plutonium containing 80 percent or more by weight of the isotope Pu-238, uranium-233 and for uranium enriched 20 percent or more in the isotope uranium-235 (except as provided in paragraph (e)(3)(ii) of this section); and

(ii) 6 calendar months for uranium enriched less than 20 percent in the isotope uranium-235; for plutonium, U-233 and high-enriched uranium in that portion of an irradiated-fuel reprocessing plant from the dissolver to

the first vessel outside of the radiation shielded portion of the process; and for plutonium containing 80 percent or more by weight of the isotope Pu238;

(4) Within 30 calendar days after the start of each ending physical inventory required by paragraph (e)(3) of this section:

(i) Calculate, for the material balance interval terminated by that inventory, the material unaccounted for (MUF) and its associated limit of error for each element and the fissile isotope for uranium contained in material in process;

(ii) Reconcile and adjust the book record of quantity of element and fissile isotope, as appropriate, to the results of the physical inventory;

(iii) Complete and maintain for a period of five years material balance records for each material balance showing the quantity of element and fissile isotope, as appropriate, in each component of the material balance, with the associated limit of error for the material unaccounted for both in terms of absolute quantity of element and fissile isotope and relative to additions to or removals from material in process for the interval, where results of limit of error calculations are recorded in sufficient detail to permit an evaluation of sources of error.

(iv) Complete and maintain for a period of five years a record summarizing the quantities of element and fissile isotope, as appropriate, for ending inventory of material in process, additions to material in process during the material balance interval and removals from the material in process during the material balance interval; and

(v) Complete and maintain for a period of five years a record summarizing the quantities of element and fissile isotope, as appropriate, in unopened receipts (including receipts opened only for sampling and subsequently maintained under tamper-safing), and ultimate products maintained under tamper-safing, or in the form of sealed

sources;

(5) Establish and maintain a system of control and accountability such that the limits of error for any material unaccounted for (MUF) ascertained as a result of the material balances

2 As a percentage of additions to or removals from material in process, whichever is greater.

Any licensee subject to this paragraph on December 6, 1973, who requests higher limits pursuant to paragraph (e)(6) of this section at the time he submits his program description under the provisions of paragraph (g) of this section is hereby authorized to operate at the higher limits until the application for license or amendment has been finally determined by the Commission;

(6) An applicant or a licensee subject to the requirements of paragraph (e) of this section may request limits higher than those specified in paragraph (e)(5) of this section. The requested higher limits shall be based on considerations such as the type and complexity of process, the number of unit operations, process throughput quantities, process recycle quantities, and the technology available and applicable to the control and accounting of the material in the process. The Commission will approve higher limits if the applicant demonstrates:

(i) That he has made reasonable efforts and cannot meet the limits of

90-029 0-82--34

error of MUF specified in paragraph (e)(5) of this section; and

(ii) That he has initiated or will initiate a program to achieve improvements in his material control system so as to meet the limits specified in paragraph (e)(5) of this section.

(f) Each licensee subject to the requirements of paragraph (e) of this section shall:

(1) Establish physical inventory procedures to assure that:

(i) The quantity of special nuclear material associated with each item on inventory is a measured value;

(ii) Each item on inventory is listed and identified to assure that all items are listed and that no item is listed more than once;

(iii) Cutoff procedures for transfers and processing are established so that all quantities are inventoried and none are inventoried more than once;

(iv) Cutoff procedures for records and reports are established so that all transfers for the inventory and material balance interval and no others are included in the records; and

(v) Upon completion of the inventory, all book and inventory records, both total plant and material balance area, are reconciled with and adjusted to the physical inventory.

(2) Establish inventory procedures for sealed sources and containers or vaults containing special nuclear material that provide for:

(i) Identification and location of all such items;

(ii) Verification of the integrity of the tamper-safing devices for such items;

(iii) Reverification of identity and quantity of contained special nuclear material for each item not tampersafed, or whose tamper-safing is found to have been compromised;

(iv) Verification of the correctness of the inventory records of identity and location for all such items; and

(v) Documentation in compliance with the requirements of paragraphs (f)(2)(i), (ii), (iii), and (iv) of this section.

(3) Establish inventory procedures for special nuclear material in process that provide for:

(i) Measurement of all quantities not previously measured by the licensee for element and fissile isotope; and

(ii) For all material whose content of element and fissile isotope has been previously measured by the licensee but for which the validity of such previously made measurements has not been assured by tamper-safing, verification of the quantity of contained element and fissile isotope by remeasurement.

(4) Conduct physical inventories according to written inventory instructions for each inventory which shall;

(i) Assign inventory duties and responsibilities;

(ii) Specify the extent to which each material balance area and process is to be shut down, cleaned out, and/or remain static; 3

(iii) Identify the basis for accepting previously made measurements and their limits of error;

(iv) Designate measurements to be made for inventory purposes and the procedures for making such measurements; and

(v) Identify the means by which material on inventory will be listed to assure that each item is inventoried and that there is no duplication.

(g) Each licensee subject to the requirements of paragraph (e) of this section shall submit to the Atomic Energy Commission for approval by March 6, 1974, a full description of the program intended to be used to enable the licensee to comply with that paragraph and the requirements set forth in paragraph (f) of this section. This program shall be followed by the licensee after May 6, 1974.

(h) Each licensee who determines that the requirements of paragraph (e) of this section will require modifications of his plant or equipment costing $500,000 or more may, by March 6, 1974, apply to the Atomic Energy Commission for an extension of time, not to exceed six additional months, for compliance with those require

3 No process shutdown and/or cleanout for inventory is required if requirements with respect to MUF and the limit of error of MUF as specified in paragraph (e)(5)(ii) of this section are met using other inventory methods.

ments. Each application for extension shall include a description of the modifications to be made, a statement of estimated associated costs with substantiating evidence, and a schedule of the dates when the modifications will be commenced and completed.

(i)(1) Records which must be maintained pursuant to this part may be the original or a reproduced copy or 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.

(2) If there is a conflict between the Commission's regulations in this part, license condition, or other written Commission approval or authorization pertaining to the retention period for the same type of record, the retention period specified in the regulations in this part for such records shall apply unless the Commission, pursuant to § 70.14, has granted a specific exemption from the record retention requirements specified in the regulations in this part.

(Sec. 161, as amended, Pub. L. 83-703, 68 Stat. 948 (42 U.S.C. 2201); sec. 201, as amended, Pub. L. 93-438, 88 Stat. 1243 (42 U.S.C. 5841))

[38 FR 30544, Nov. 6, 1973, as amended at 38 FR 32784, Nov. 28, 1973; 41 FR 18303, May 3, 1976; 43 FR 6925, Feb. 17, 1978]

§ 70.52 Reports of accidental criticality or loss or theft or attempted theft of special nuclear material.

(a) Each licensee shall report immediately to the appropriate NRC Regional Office listed in Appendix A of Part 73 of this chapter by telephone and telegraph, mailgram, or facsimile any case of accidental criticality and any loss, other than normal operating loss, of special nuclear material.

(b) Each licensee who possesses 1 gram or more of contained uranium235, uranium-233, or plutonium shall report immediately to the appropriate NRC Regional Office listed in Appendix A of Part 73 of this chapter by telephone and telegraph, mailgram, or facsimile any theft or other unlawful diversion of special nuclear material which he is licensed to possess, or any

incident in which an attempt has been made or is believed to have been made to commit a theft or unlawful diversion of such material in accordance with the procedures in § 73.71 of this chapter.

[41 FR 16447, Apr. 19, 1976]

§ 70.53 Material status reports.

(a)(1) Each licensee who is authorized to possess at any one time and location special nuclear material in a quantity totaling more than 350 grams of contained uranium-235, uranium233, or plutonium, or any combination thereof, shall complete and submit to the Commission (on DOE/NRC Form742, Material Balance Report) material balance reports concerning special nuclear material received, produced, possessed, transferred, consumed, disposed of, or lost by the licensee. The licensee also shall prepare (on DOE/ NRC Form-742C, Physical Inventory Listing) a statement of the composition of the ending inventory, which shall be submitted to the Commission as an attachment to each material balance report. All such reports shall be made as of March 31 and September 30 of each year and filed within thirty (30) days after the end of the period covered by the report. The Commission may permit a licensee to submit such reports at other times when good cause is shown. In preparing and submitting the reports described in this paragraph, the licensee shall comply with the printed instructions for completing the particular form.

(2) Any licensee who is required to submit routine material status reports pursuant to § 75.35 (pertaining to implementation of the US/IAEA Safeguards Agreement) shall prepare and submit such reports only as provided in that section (instead of as provided in paragraph (a)(1) of this section).

(b) Each licensee subject to the requirements of § 70.51(e) shall submit a report, in accordance with paragraph (b)(1) or (b)(2) of this section, to the appropriate NRC Regional Office listed in Appendix A of Part 73 of this chapter, with a copy to the Director of Inspection and Enforcement, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555, within 30 calendar

days after the start of each ending physical inventory required by § 70.51(e)(3).

(1) If the material unaccounted for exceeded both (i) its associated limit of error and (ii) 200 grams of plutonium or U-233, 300 grams of high enriched uranium or uranium U-235 contained in high enriched uranium, or 9,000 grams of U-235 contained in low enriched uranium, a statement of the probable reasons for the material unaccounted for and actions taken or planned with respect to the material unaccounted for; and

(2) If for any material the limit of error of the material unaccounted for balance exceeds any applicable limits specified in § 70.51(e)(5) or approved pursuant to § 70.51(e)(6), a statement of the probable reasons for the limit of error and actions taken or planned with respect to the limit of error.

(Sec. 201, Pub. L. 93-438, 88 Stat. 1242 (42 U.S.C. 5841))

[38 FR 30546, Nov. 6, 1973, as amended at 41 FR 16447, Apr. 19, 1976; 42 FR 17100, Mar. 31, 1977; 45 FR 50711, July 31, 1980]

§ 70.54 Nuclear material transfer reports.

(a) Each licensee who transfers and each licensee who receives special nuclear material shall complete and distribute a Nuclear Material Transaction Report on DOE/NRC Form-741, in accordance with printed instructions for completing the form, whenever he transfers or receives a quantity of special nuclear material of 1 gram or more of contained uranium235, uranium-233, or plutonium. Each licensee who receives such material from a foreign source shall complete both the supplier's and receiver's portion of DOE/NRC Form-741; perform independent tests to assure the accurate identification and measurement of the material received, including its weight and enrichment; and indicate the results of these tests on the receivers portion of the form.

(b) Any licensee who is required to submit inventory change reports on DOE/NRC Form-741 pursuant to § 75.34 (pertaining to implementation of the US/IAEA Safeguards Agreement) shall prepare and submit such reports only as provided in that sec

tion (instead of as provided in paragraph (a) of this section).

(Secs. 161b. and o., Pub. L. 83-703, as amended, 68 Stat. 948; (42 U.S.C. 2201(b) and (o)); sec. 201, as amended, Pub. L. 93438, 88 Stat. 1242 (42 U.S.C. 5841))

[45 FR 73012, Nov. 4, 1980]

§ 70.55 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 his 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 Inspection and Enforcement, provide rent-free office space for the exclusive use of Commission inspection air personnel. Heat, 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, the space provided shall be adequate to accommodate a full-time inspector, a part-time secretary and transient NRC personnel and 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 Inspection and Enforcement. All furniture, supplies and communication equipment will be furnished by the Commission.