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DESCRIPTION OF SPECIFICATION MATERIAL
CONTAINER ACCEPTANCE CRITERIA

SPECIFICATIONS FOR RECOVERED PRODUCT

MEASUREMENTS OF IRRADIATED REACTOR MATERIAL

EXAMPLES OF DEBITS AND CREDITS OF COMMISSION'S ACCOUNT
WITH THE CONTRACTOR, PER PROCESSING LOT

PLANT DATA FOR PUBLIC DISSEMINATION; OPERATING REPORTS

CONTRACT NO. AT(38-1)-344

day of

THIS CONTRACT entered into this 1963, by and between the UNITED STATES OF AMERICA (hereinafter referred to as the "Government"), represented herein by the UNITED STATES ATOMIC ENERGY COMMISSION (hereinafter referred to as "the Commission") and NUCLEAR FUEL SERVICES, INC. (hereinafter referred to as "the Contractor"), a Maryland corporation with an office and place of business at 910 17th Street, N. W., Washington 6, D. C.

WITNESSETH THAT:

WHEREAS the Contractor, in reliance upon the Commission's undertaking to deliver for chemical processing the amount of material set forth in Article II hereof, proposes to design, construct and operate a Plant capable of chemically processing irradiated reactor material delivered to the Contractor by the Commission, persons licensed by the Commission, and others; and

WHEREAS the Commission desires to obtain chemical processing services for irradiated reactor material owned by the Government; and

WHEREAS the Commission desires that chemical processing services be available to persons licensed by the Commission, and others, at charges and under terms and conditions which are considered by the Commission to be reasonable; and

WHEREAS the Commission desires to withdraw from providing for chemical processing services in accordance with the Federal Register Notice of March 12, 1957 (22 F.R, 1591), as amended, to the extent such services are commercially available at charges and under terms and conditions which are considered by the Commission to be reasonable; and

WHEREAS the Commission desires to obtain and widely disseminate technical and economic information concerning the chemical processing of irradiated reactor material, the widespread availability of such information being important to the Commission's continuing program of nuclear reactor development; and

WHEREAS the Commission is undertaking to deliver for chemical processing the amount of material set forth in Article II hereof in reliance upon the Contractor's undertakings as provided herein; and

WHEREAS the Contractor is willing to provide the services specified in this contract for the Commission, persons licensed by the Commission and others; and

WHEREAS the Contractor is willing to compile and provide technical and economic information concerning the chemical processing of irradiated reactor material in the Plant, as provided in this contract; and

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21-261 0–64– -17

WHEREAS this contract has been negotiated and is executed pursuant to the authority of the Atomic Energy Act of 1954, as amended;

NOW, THEREFORE, the parties hereto mutually agree as follows:

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The following terms, as used in this contract, shall have the following meanings:

A. "Act": the Atomic Energy Act of 1954, as amended.

B. "base charge": the dollar amount per unit of uranium distributed by the Commission (excluding U-233, and mixtures of U-233 and U-235 as defined by the Commission and published in the Federal Register from time to time) in standard form and specification, determined by the Commission and published from time to time in the Federal Register, in effect as of the time any particular event under this contract takes place.

C. "blend": to mix uranium with uranium or plutonium with plutonium.

D. "byproduct material": any radioactive material (except special nuclear material) yielded in or made radioactive by exposure to the radiation incident to the process of producing or utilizing special nuclear material.

E.

"chemical processing": all services required for the mechanical and chemical treatment of irradiated reactor material in order to separate and recover the recoverable uranium and plutonium contained therein.

F. "Commission": The United States Atomic Energy Commission or any duly authorized representative thereof, including the Contracting Officer except for the purpose of deciding an appeal under Article XLVIII.

G. "Commission's price": the dollar amount per unit of (i) U-233, (ii) mixtures of U-233 and U-235 as defined by the Commission and published in the Federal Register from time to time, or (iii) plutonium, which the Commission pays for such material produced by a Commission licensee in a nuclear reactor and delivered to the Commission in standard form and specification, determined by the Commission and published from time to time in the Federal Register, in effect as of the time any particular event under this contract takes place.

H. "consumed or consumption": includes (i) the reduction in value of uranium and/or plutonium due to blending or other alteration of the isotopic ratio and (ii) the disposition of such material in such manner that it cannot be economically recovered for further use.

I. "Contracting Officer": the person executing this contract on behalf of the Government, including his successors and any duly authorized representative of any such person.

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J. "input measurements": the sampling and measurements performed in accordance with Article XXXI to determine the amount and the value of uranium and/or plutonium contained in irradiated reactor material delivered hereunder.

K, "irradiated reactor material": irradiated material, including but not limited to source and special nuclear material, discharged from the core of a nuclear reactor or from the regions of a nuclear reactor surrounding the core, after operation of a nuclear reactor.

L. "measured input value": the value of uranium and/or plutonium contained in each processing lot as determined by the input measurements.

M. "measured losses"; the value of uranium and/or plutonium discharged as waste from the chemical processing of each processing lot, as determined in accordance with Article XXXI. The isotopic content of the uranium and/or plutonium in the waste streams from any given processing lot shall conclusively be deemed to be the same as the average isotopic content of the uranium and/or plutonium in such processing lot as determined by the input measurements.

N. "Plant": the chemical processing plant to be designed and constructed by Bechtel Corporation for the Contractor at the Western New York Nuclear Service Center, Cattaraugus County, New York.

0. "Plant Construction Agreement": any agreement between the Contractor and Bechtel Corporation for the design, engineering and/or construction of the Plant, as the same may be amended from time to time.

P. "plutonium": includes any isotope of plutonium.

Q.

"processing lot"; that amount of specification material designated by the Commission in accordance with Article IV for chemical processing.

R.

"processing unit": the amount of specification material set forth
for each Material Category.

in Appendix

S. "processing year"; each period of 12 consecutive months commencing on a date which the parties shall agree upon in writing, and each anniversary thereof; in the event of failure to agree upon such an initial date, it shall conclusively be deemed to be that date which is 180 days after the date upon which the Contractor is granted a license by the Commission to operate the Plant.

T. "recovered product"; nitrate compounds of uranium and/or plutonium meeting the specifications set forth in Appendix C.

U, "recovered product measurements": the sampling and measurements performed in accordance with Article XXXI to determine the value of uranium and/or plutonium contained in recovered product,

V. "recovered product value": the value of uranium and/or plutonium contained in recovered product from each processing lot, as determined by the recovered product measurements,

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