5 may 0 533 2 I g 9 i tantrol Over Enriched Uranium 3-3 nuclear I-taterials 5 Equipment Corp 3' q 3 Apcno if I s ivision of Nuclear Tater-@818 Managez ta April 6 1900 g - I c a - - DOCLAMQVVI Q6 2 1 1 General L8 0' CONTENTS Daacription of Apollo Facility 3 lunary of Findings 3 1 General 3 2 Records Audit 3 3 Nuclear Materials Management 6 Discussion Records and Reports Physical Inventory Inventory Summation Foreign Transfers S Losses Discards and Material Unaccounted For Liquid wastes Burial of Contaminated wastes Miscellaneous Discards Material Unaccounted For 6 Hestinghouse Astronuclear Purchase Order 59-NP-12674 6 1 Resolution of Disposition of Material Losses 7 Reconnendations 6 Meeting with NUMEC Appendix A - Appendix 3 Appendix Appendix Appendix 2 Investigation of the Possibility of Biased Measurements in Shipments of UCZ from NCMEC to HANL Transfers to Foreign Entities by NUMEC NUMEC Letter of 12 29 65 Presenting MC's Analysis of Disposition of Material under Purchase Order NUMEC Contract 1231 D E George's Memo to Piles Subject MEETING HITB NUMEC FEBRUARY 3 1966 dated 2 7 66 NUMEC's 2 5 66 letter of Response to Survey Tee-'3 Recamendations mm GIFT 1Loccu- - - you Uh rooms mm mask bum-53 enema animus a murmur cm 1 1 A survey of control exercised by the Iuclear Haterials and Iquipment Corporation NUHEC Apollo over enriched uranium held by it use performed during the period lovember 1-12 1965 by members of the Headquarters Division of Nuclear Materials Management Iersonnel from the lev York and Oak Ridge Field Offices and from the Space Nuclear Pro- pulsion Office-Cleveland assisted in selected phases of the survey field vork 1 2 me objectives of the survey vere to determine the total cumulative 0-235 loss l or the NUHEC Apollo plant operation since start-up in 1957 and to evaluate the extent to which such losses could be accounted for in terms of known loss mechanisms liquid wastes stack gases burial ground dis- posals and r-ssurement biases in order to arrive at materialounaccountcd-for quantity and to sttempt to ind explanations for the unexpectedly high 0-235 loss about 6% of tatal 0-235 received attributed by NEMEC to the Westinghouse Astronuclear Laboratory NARI Purchase Order S9-NP-12674 1 Loss as used here means the difference reSulting from the total cunulative 0-235 received by NINEC less the sum of total cumulative shipments of Y-235 by NUMZC to others and NUHEC's physical inventory of 0-235 as of 10 31 65 2 Haterisl unaccounted for occurs when after a physical inventory of a plant there is a difference between the physical inventory and the book inventory after the latter has been ad- justed for accidental losses normal operational losses dis- charges to tanks aevers stacks burial grounds etc and other known removals of material Thus HUT is usually the result 0 uncertainties of measurements unknown losses and undetected errors 1 1L RISE DRILY 5 omcw1 3 The survey performed generally in accord with i standards set forth in AECH 7602 for cost-type contractors A detailed discussion of the survey steps is provided in sections 3 and 3 of this report - 1 4 The survey covered the plant operating period ending October 31 1965 any aspects of the survey were extended back to plant start-up in 1957 1 5 The survey covered all enriched uranium located at Apollo facility it is all ABC-owned Enriched uranium located at Park Township facility see paragraph 2 2 but carried on the records as part of the Apollo facility use also included plutonium or 0-233 at the Park Township site ves not included 2 Description of Apollo Facility 1 2 1 NUHEC owns and Operates uranium processing facility at Apollo The major emphasis of the facility is on the conversion of Uf6 into uranium oxide or carbides and the fabri- cation thereof or use in nuclear reactors including commercial power research and governmental applications The Apollo facility is also equl pP to and does recover uranium from various scrao and residue materiele in par ecnir oa at its Apollo plant to prepare ur1niun metal but is equipped for most operations involving uranium compounds Processing and fabrication lines are operated for uranium enriched above 51 0-235 separate and distinct from that below 5% U-235 Also NUHEC mtintsins scrap reprocessing line for uranium of less than 51 enrichment separate from the line for uranium above 51 0-235 2 2 NUHEC also owns and operates several facilities located in Park approximately 6 miles from the Apollo facility Normally only the Apollo facility will process uranium while the Park Tocnship facility vill process other materials of interest to the nuclear industry In addition drums con- taining uranium-bearing residues are stored at the Park Township site The hillside overlooking this site is the location of 1166's burisl ground It is this burial ground which is the point of reference for the 1962 and 1963 burial pits discussed subsequently I we held by a iced-price contr1ctor who was financiallv liable to the AEC ptyrent or losses would not have been subj ct f to such an intensive scrutiny rather the survey would have followed the standards set forth in AEC Immediate Action Directive 7600-8 use mew - -- - V - - - x-o - - - s e 3 3 Qumran of findings - 3 1 Genera 3 11 based on the survey team's findings the total lativs loss 1 known losses and discards plus material-unaccounted-for at NUHEC since plant start-up in 1957 has been established as 173 kg 0-235 During this period NUHEC recognised and reported losses year-to-year for total cumulative quantity of 149 kg 0-235 The increase of 29 kg 0-235 to 178 kg 0-235 was established by the survey team as follows 0 235 33 Total cumulative 0-235 received by NUHEC since - plant start-up in 14 693 Total cumulative 0-235 shipped by NUMEC since plant start-13 993 NUHEC 0-235 plant inventory 2 57 as of Or-tober 31 ms Total Cumulative quantity of 0-235 at October 31 1965 to be accounted for since plant 178 2 this cumulative loss while larger both on an absolute and relative basis than those reported by other com- mercial facilities conducting more or less comparable operations does not appear to be so much larger as to be unexpected considering the circumstances described 1 8ee footnote 1 paragraph 1 2 for definition of loss 2 1here are uncertainties in these quantities due to a large number of heterogeneous uranium-bearing residues on inventory which are not amenable to representative sampling Therefore upon recovery by NUMEC some adjustment either upward or downward to the in- ventory may be necessary Ii such an adjustment is made a com- pensating adjustment to the cumulative loss of 178 kg 0-235 likewise will be necessary Also see para 3 17 GIFIFHCHAIL ONLY - V t ix 3 12 nmcw use or subsequently in this report bile it cannot be stated with certainty that diversion did not take place the survey team 22nd no evidence to support that possibility Conversely there were a num er of observations by the survey team and others of NUMBC's practices that would reduce the possibility of diversion Enriched uranium except that in process is stoled at the Apollo plant in secured areas under lock and key and is the responsibility of a vault custodian Access into and from the plant is through a small waiting room which is monitored by a receptionist or a guard All visitors are required to sign a register upon entering or leaving the plant Of particular note is the fact that there have been no in- stances of reported missing identifiable items such as cylinders Of 0F6 or containers of uranium products awaiting shipment or other uranium compounds Since July 1965 until September 1965 ABC inspectors were in the plant to observe NUHEC's scrap uranium reprocessing operation From November 20 1965 until February 23 1966 Oak Ridge Operations Office has had an inspector 'observing this operation on a selective work shift basis Also during the exhumation of the burial pits personnel from the Division of Compliance Division of Industrial Participation Division of Nuclear Haterials Management and SNPO-C witnessed the recovcrv Thus ample onoortunitv was afforded AEC personnel for contact and discussion with all levels of NUHEC operating and supervisory employeei None of these varied and associations revealed any evidence that would lend support to the possibility of diversion of special nuclear material at NLHEC - - The ABC survey team develOped an estimate of 8 2 kg 0-235 resulting from known loss mechanisms hen offset against the total cumulative loss of 178 kg 0-235 paragraph 3 11 this results in a cumulative material-unacCOunted-for quantity of 93 8 kg 0-235 178 kg - 84 2 kg Based on total 0-235 introduced into NUNEC the total loss of 178 kg is 1 211 of plant receipts and the unaccounted for of 93 8 kg is 0 641 DEFIFITCILM 3 30WIICIIAIL USIE 01 - 3 13 The estimates of all known loss mechanisms are tabu- lated as follows and are discussed below 0-235 uc dent 1 3 0 lorual operational losses I Liquid wasig effluent discards 58 0 Burial pit discards non-recoverable con- taminated earth 2 2 Stack gas 16 0 Liquid te in storage zoo 79 2 Trackout contaminated laundry and shoe 5 0 Total - Known Loss 84 2 3 14 Through an exam-1ation of available NUMZC records supporting stack gas losses 16 0 kg liquid wastes in storage drums 2 0 kg and liquid waste effluents 58 0 kg the t'rvey team developed an estimate of about 76 0-235 for the entire operational period of the Apollo facility Additionally NUMEC records indicate a loss of about 3 kg 0-235 resulting from a vault fire which occurred February 9 1963 NUMLC's records of the sampling and analysis of the uranium- contaminated earth burden associated with the recovery operation of the 1963 burial pit show in excess of 2 2 kg 0-235 which is uneconomical to recover NUHEC's recovery of 201 of the uranium-bearing recoverable material exhumed from that pit yielded a quantity of 6 1 5ee para 3 14 See para 5 31 2 8ee paras 5 11-5 13 5 8ee para 5 32 para 5 25 6 5ee para 5 33 @3113 about 1 1 kg 0-235 An extrapolation of this recovery Experience to the remaining 801 of the pit material on which incineration and recovery is progressing should abcount for an additional b b kg 0-235 resulting in a total of 5 5 kg 0-235 However the 5 5 kg 0-235 exhumed from the 1963 pit has now been brought back on to the physical inventoryconsidered in evaluating known discards or loss mechanisms Thus from NUHEC's records it is possible to support known losses of 79 2 kg 0-235 3 15 HUMEC has developed no historical data which would enable the survey team to place an estimate on the amount of uranium losses from such sources as contaminated laundry shoe covers and trackout However based on Union Carbide's Y-12 experience factors for such loss the survey team has estimated NUHEC's losses from this source as 5 kg U-235 Thus it is possible to place what the survey team believes to be a conservative total estimate of about 84 2 kg 0-235 79 2 kg 5 0 kg which NUHEC could have assigned to known discards or loss enchanisms ' 3 16 The possibility oi the loss of uranium resulting from a bias in monuments of shipments of 0C2 iran NUMEC sv 0 1 1v6051685c5 3v fwiJ m 0 LU suggest that such a bias existed The details of that investigation are attached as Appendix A3 3 17 N13136 has a sizesble backlog of internally generated uranium residues The U-ZJS content assigned to these residues by NUNEC was recognized by the survey team as being highly imprecise and is subject to adjustment upon recovery Nevertheless such content was and is the best data available and was used by the AEC survey team in computing inventory quantities Many of these residues have lost contract identity Essentially all of these residues which have lost contract identity have been assigned by to the HANL Purchase Order 59-NP-12676 3 2 Records Audit The audit of the NUHEC records confirms the findings of prior surveys that the records which purport to control internal movements of material were incomplete and inadequate Because of this it is impossible to identify with any high degree of accuracy the true physical losses attributable to any given use oh - - contract In addition the plant-via v 3 based largely on book values of inventory and generally uere adjusted for losses only at the time of cloug conga I'bis adjustment was usually only in the amount of abut had been estimated on an engineering but a u a contract bid was made 3 3 Nuclear Materials Management The function of nuclear materials management at me is in need of direct management attention Until recently um management had not assigned the Caliber of full-time profes- sional talent generally found by other canpsniea to be neces sary in such a complex operation In addition direct supervisory attention to this matter in plant operations coupled with an educational program to are the Forum of proper material control to all plant employees shOuld be a matter of first priority 6 Discussion 6 1 Records and 5 11 The central n1anr-ui-lo mean-meqnaaum - - - by NUHEC to generate material balance reports for con- tract material and semi-annual status reports for leased material consist of an external receipts and removals 2 transfer journal and a job order ledger for each report The job order ledgers contain by NUMIC internal job number SS material balance summaries for job orders which are in process Only external receipts and removals are posted to the job order ledger and in the main losses are only when c0ntracts are closed and then only in the amount of th- estimates included in the bid 12 In addition to the records maintained in the central accountability office a combined contract and lease subsidiary interplant transfer ledger has recently been established and is being maintained by the vault custodian in the uranium prvavsing area This ledger was established to the April 30 1965 survey This book of record reflects by job order movement of material through the different processing areas of rho facility However adjustments had not been made for ONLY 0 a A 3 WHCEAL FEE 0 significant differences between the book inventories aid periodic physical inventories which had been requested by supervision on an individual job order As with prior Job ledgers job order balances still do not reflect either the quantities physically on hand or losses localised by job order or by process A quantity measurement is made as material is received and removed from a process but any Interial lost due to processing is not recorded 4 2 Physical Inventory 4 21 l 4 22 4 23 rm The survey team prepared an independent inventory listing of all enriched uranium recognized by NUHEC as being physically p'esent using NUMEC's data for uranium and 0 235 content Host of the listing was completed on Nevember 2-3 1965 a few items about to be fed to the processing line were inventoried on Iovember in order to minimize the impact of the in- ventory listing on production The inventory list consisted of about 2300 line items Of these 771 constituted only 12% of the total U-23S inventory This relation hip demonstrates that many items on the NUMEC inventory consist of lowograde and low- enrichment residt s Specially prepared inventory forms were used to facili- tate subsequent processing of the inventory by EDP equipment The 2300 line items of in- ventory were sorted by NtMEC-assigned job number and were printed and totaled using EDP equipment at AEC's data processing center Oak Ridge Gaseous Diffusion Plant Oak Ridge Tennessee In order to test the validity of the inventory data the sdrvey tesm check-weighed a statistical sample of 146 items selected at random Thirty-four of the items weighed were also sampled for independent chemical and isotopic analysis at AEC's New Brunswick laboratory New Brunswick New Jersey 0 the 146 items that were weighed six discrepancies which could not be explained by evaporation or other recognized causes were noted This was considered acceptable on the basis that the statistical sampling plan used permitted as many as twelve such errors a DEFIFIICHAIL em Wncw 111515 0136 25 For those items selected for independent analysis the criterion of acceptability was considered to be total uranium and 0-235 in the batch Collectively the total uranium and 0-235 values agree favorably although a large number of individuel differences were considered 0 excessive -This was not unexpected due to the hetero- geneous nature of the sampled materials that is miscellaneous residues sludges ash and recoverable wastes In most of these cases only a small amount of uranium or 0-235 was involved and the value placed on the SNM by NUHEC done by a quick gamma counting technique However the survey team selected samples of these materials for independent analysis to avoid the possibility of any significant quantity of 0-235 escaping detection 6 25 hai stored 731 air filters 704 of which were not on inventory from process hoois and glove boxes 177 containers of combustible and other wastes accumu- lated since 1964 not yet incinerated or leached and of combustible wsstes removed from the l963 burial pit and 118 process sir filters still in use in the process lines Each of these inventory categories is discussed below 6 20 ine survey team estimated the 0-23 content in the 731 air filters using a gamma counting technique in which the 184 Rev natural decay gamma rsy from 0-235 is selectively caunted under conditions of controlled geOmetry A comparison of counting data from the unknOIn filters with that from two prepared standards indicated that the 731 air filters contain approximately 6 5 kg 0-235 In sane instances however this estimate is based on assumptions concerning compsrability of geometry which are not based on experimental evidence Recovery of 22 selecteJ filters for checking purposes was performed by the Union Carbide Nuclear Corporation's 1-12 Plant of Y-lZ s recovery data with that obtained by use of a gsmma spectrometer was excellent on the basis of total uranium 235 content Uhile agreement on individual filters not always within the 101 ex- pected this was not unexpected because many of the filters contained very small Quantities of uranium 10 grams uranium 235 and the use of the gems spectrometer under field conditions will not result in agreement of 5-101 which is possible in laboratory testing when background caunts can be minimized more positions of the filt-r are counted and long'r cOLnting tim s can conveniently be uscd r-vmv no I USE 3613 29m i 2 nmcw use - 10 6 27 the survey team also estimated the 0-235 content of 6 3 the 177 assorted containers of combustible waste and carbon wool to be 1 5 kg 0-235 using the same tech- - nique as that used for the air filters lecovery o three selected boxes for checking purposes was performed by the Y-l2 Plant and showed a wide variation in agree- ment with the survey team's gamma spectrometer measure- ments The survey team believes that this disagreement results from the lack of standards and the variable and uncertain counting geometry of the bones nowever because these wastes contain such a small amount of 0-235 even a large variation in the estimate has little or no effect on the total inventory 4 28 On the basis of engineering drawings and a physical examination of the plant the survey team estimates that 118 air filters currently in use were not included in the physical inventory listing NUHEC has a scheduled program for removal of in-line air filters based on weight gain and length of time in service On the sump- tion that on the average each air filter still installed in the plant process lines was 501 loaded they were estimated to contain 540 grams 0-235 4 29 NUHIC has exhuzed both its 1962 and its 1963 burial pits and has hand-sorted potentially recoverable material The combustible wastes from the 1962 pit had been ashed and analyzed prior to the survey and were included in the physical inventory with a 0-235 content of 300 grams Of the material removed from the 1963 pit the survey team estimated that approxi- mately 5 5 kg 0-235 is contained in such wastes Inventory Summation The NUHIC inventory of 522 kg 0-235 as of 10 31 65 was derived by the AEC survey team on the basis of inventory quantities 9 which almost entirely 992 had been established by NUHIC A quantity of 5 2 kg U-235 was independently determined by the ABC survey team by gamma spectrometry of stored filters and combustibles assigned to the Uestinghouse Astronuclear Purchase Order The following tabulation shows the material assigned to the contract and to all other contracts 1h survey team recognizes the large uncertainty associated with the inventory quantities assigned to the residues ashes etc from the contract because of their heterogeneity and low 0-235 content ONLY EEXSICAL INVENTORY OCTOBER 31I 1965 0-23541K314 ABC IUHEC 4 anntitiea anntitiea Iota 0 laaeed Material - sun-145 97 0 97 0 Ion-leased Material Contract HANL 59-NP-12674 - Ieaidue from original job order 2 7 2 7 Canbuatiblea 0 3 12 0 12 3 704 Piltera 0 9 0 9 Filter Ash 6 0 6 0 Material from Burial 91 5 8 2 5 8 leaiduea from Fire 0 7 0 7 Total HANL 59-NP-12674 5 2 27 32 6 All Other Contracta 391 873 391 8 Total 5 2 516 0 521 2 5- Rounding Difference 0 8 Total Raunded 0 10 31 65 Inventory 522 Determined by AEC gacuu 2 7he AEC reviewed the NUHEC data supporting the quantitiea of 0-235 in combustible waste removed from the 1963 burial pit and accepted estimated quantitiea carried on inventory 27 filtera with a 0-235 content of 3 2 kg which the AEC accepted notwithstanding that the gamma spectrometry test indicated that theae filtera contained 1 7 kg 0-235 USE I 1 - 0 000 - 5 - mcm use on 11- goreign Transfers Losses Placards and Material For 5 1 the surJey team was aware of the twenty-eight foreign contracts under which NUHEC had performed fabrication services and bad transferred enriched uranium have been reviewed routinely by the Oak Ridge field Office and by the Division of International Affairs to ascertain that the docunents reflect the quantities said to have been shipped and received and that the documents have been appropriately signed buantities in specific shipments domestie as well as foreign The are not confirmed independently by the such actions have been outside the scepe of the present ABC system of control of nuclear material developed receiver's data receiver Instead reliance has been placed on a tech- nical review of the shipper's internal controls and independently The validity of this approach is of course largely dependent upon the integrity of the shipper and A review of NUHEC's shipping practices and procedures made by representatives of the Division of Nuclear Haterials Kanagement International Affairs and Office of the Controller is the subject of another report MC has sufficient internal controls on shipments which when That report indicated that properly implemented should in the absence of a deliberate collusion ensure that the quantities reported on the transfer documents were indeed those quantities shipped The Division of Nuclear Materials Management is presently studying the possible feasibility and desirability of independent AEC physical checks of shipments at time of shipment of the foreign transfers made by NUHZC is attached as Appendix B Liguid wastes 5 11 5 12 A summary During the course of normal processing Operations NUHEC discards several thousand gallons of liquid waste per 24 hour period at a typical uranium coacentration of somewhat less than 1 ppm The survey team reviewed the system used for the collection and measurement of liquid wastes and examined the log books used for the recording NUHEC was asked to convert the log book data of data into grams 0-235 and to prepare totals this summation was then subjected to audit testing The survey team adopted a specific activity value of 88 dpm' 3 based on an assumed average enrichment of 5-202 effluent discarded USE EMILY - w- -235 in calculating the content of the liquid thus it has been estimated that during the period from July 1960 to September 1965 HUHEC Documents covering these transfers USE on - 13 discarded an estimated 56 kg 0-235 in liquid wnstes litrapolation of this data to the start of plant oper- ations results in an additional 6 kg 0-235 discarded - for a total of 58 kg 0-235 0 5 13 The survey team noted that samples of liquid wsste effluent consistently have a p0 of 9-11 and usually are cloudy Samples are taken at a point approximately 10-20% of the vertical height from the true tank bottom These factors led the survey team to surmise that actual liquid waste concentrations may even be somewhat greater than calcu- laced 5 2 Burial of Contaminated Haste 5 21 In each of the years 1961 1962 and 1963 ma made burials of contaminated wastes which they believed contained insignificant amounts of uranium In 1964 however when NUMEC recognized that unacceptably high uranium losses were occurring NUHEC came to the con- clusion that previous estimates of uranium in combustible wastes being buried were low and no further burisls have been made subsequent to that time The 1962 and 1963 pits were exhumzd in the $11 of 1965 The ex- humation Operation was witnessed by personnel representing the Office of Complisnce the 0ivision of Nuclear Materials rhnagcment the Division of Industrial Participation and SNPO-C The results of this reopening are described below spy fl 5 22 The 1962 and 1963 burial pits were reopened by first using a bulldozer to push off the overburden and then using a clamshell type digger to remove all buried wastes These wastes were then hand sorted to remove all cambustible material Any other material which appeared to be recoverable was also removed for separate processing 5 23 The survey team was advised that 300 grams 0-235 wet recovered iron the 1962 pit Incinerated ashes fro- the 1962 pit as well as from current operations were - - included in the physical inventory o' 5 24 Incineration of combustible wastes from the 1963 pit began during October 1965 and was approximately one-fifth complete as of November ll The survey team estimates that 5 5 kg 0-235 will be recovered GIFIFHCIIAIL USE ONLY 58chw use may 3 25 $911 samples from the 1963 burial pit indicate a 11-235 concentration of about 2 to a depth of about 10 below the pit bottom The most probable explanation or this contamination is that it represents uranium leached or washed from buried contaminated equipment the survey team accordingly estimates that the total contaminated volume is 46 thick 36 in the pit plue 10 below the pit bottom Since the pit area is approximately 5540 sq ft the estimated 0-235 content is 2 2 kg 5 26 Since very little uranium was found in the 1962 pit the survey team did no extrapolate the contaminated soil data to include soil removed Iran the 1962 pit 5 3 Miscellaneous tiscards 5 31 The NUMEC Apollo plant currently contains 118 filtered exhaust stacks and three large ventilation fans Using an average of 110 d m M3 the survey tcam estimates that at least 16 kg U-235 have been lost through this mechanism the 14 kg estimat- is considered to be a minimum because Division of Compliance inspectors have noted that stack gas surveys were not performed on stacks at times when loss rates mignt expectc to oe abnormally high There does not appear to be any way to estimate the extent if any to which the eStimated 110 d m M3 average loss rate may be lower than actual 5 32 NUHEC has stored some 1500 drums of waste which because it contains beryllium cannot be discarded Based on samples taken dUILng the survey these wastes are esti- mated to contain 2 0 kg 0-235 5 33 The survey team notes that coveralls lab coats and rubber shoe covers are cleaned by Nuclear Decontamination Corp a NUHEC subsidiary and that no 0-235 recovery data is available The Apollo plant employs about 225 people of whom perhaps 100 routinely wear coveralls In addi- tion shoe covers are used at a rate of 30-50 pair per day Neglecting the period prior to 1960 when operations were on a smaller scale these use rates still total about 150 000 coveralls and 80-100 000 pairs of shoe covers No truly comparable AEC operation exists but Union Carbide's Plant has derived an experience actor of 0 2 0 per working day per employee as loss through trackout laundry scrvice and sanitary s-wexs On this basis and assuming an average enrichment of FL U-233 the surv y tram estimated about 5 kg 0-235 10st through this mechanism - Ova- v u v-1 1 Unmcm USE om - - hterial Unsccounted Yer 0f the'total cumulative loss of 178 kg 0-235 86 2 kg has been accounted for as discussed above The remainder 93 t3 0-235 is material-unaccounted-for As dsfined previously 0 material-unaccounted-for is that quantity remsining when the difference between the physical measurements and book records has been adjusted for all quantities which are capable of measurement directly or indirectly accidental losses normsl operational losses -- discharges to tanks sewers stacks burial grounds etc and any other known write-offs of material HUF then is the result of measure- ment uncertainties unrecognized process losses bookkeeping errors diversions or thefts and possibly even other causes If the uncertainties of input output and inventory measure- n - ments which result from the use of biased and or imprecise 'rh methods are large then it follows that their contribution to the will be large Likewise if unrecognized process 1 losses such as general building contamination equipment hold-up clothing absorption track-out and air venting occur individually in very small quantities they may over a long period accrue into a large contribution to SUP In the particulsr case of waste stream effluents at NUHIC the definite possibility exists that the actual level of discard may be as much as 15 kg U-235 greater than that estimated by tne survey tesm oecause or tne less tnan optimum sampling conditions under which NUMEC has operated Thus what may have been an explainsble discard of 15 additional kg 0-235 is now included as part of the HUF 6 Vestinghouse Astronuclear Purchase Order 6 1 Resolution of Disposition of Haterisl losses 6 11 This order involved the chemical conversion of 1013 kg 0-235 as at 93 1 enrichment furnished by the customer to produce 0C2 of which 713 kg 0-235 as at enrichment was delivered as acceptable product A physical inventory performed by OR for the period 1S6 ended April 30 1965 disclosed an apparent loss of some 53 kg of 0-235 on the HANL contract Uhile recognizing the stated position of NUMEC that on a production scale this process was of an untried and unique nature nevertheless the survey team found insufficient technically-based records to account for a loss of the magnitude of 53 kg 0-235 As a result M my - ca 6 12 6 13 6 14 USE ONE or this survey the loss sec to is now believed to be about 61 kg 0-235 is increase is net after adjusting for orfnventory fr- previously unrecognized sources and for reductions to inventory resulting principally from a more accurate estimate of the 0-235 content of air filters It should be noted that NUMEC had recognized and reported losses of 38 kg 0-235 chargeable to the contract 1 contract NUMEC by letter of December 29 1965 to the Division of Muelear Materials Management Appendix C set forth its position that high losses perhaps up to 30 kg of -235 or 31 may have been experienced in this unique and com- plex operation NUMEC claims losses of this magnitude have been experienced on jobs involving the same number of processing Operations but on material inherently less dusty in nature Hhile a loss of this order may be reasonable to assume the survey team pointed out that some portion of this loss should be of a measurable nature entrapped in air filters on glove box walls in waste solutions combustible wastes etc and as such eculd subsequently be brought on to the physical inventory or recorded as a known discard In an attempt to establish yields and loss mechanisms directly applicable to this purchase order the survey team requested NUMIC production control and process engineering data on this and other contracts lhe data made available was of little or no value in this regard Process lots or batches could not be correlated to points in time nor could a sequence of processing events be established All efforts in this direction were negated when it was learned that many of the requested records had been inadvertently destroyed by supervisory personnel during a clean up campaign at the time of an employee strike January 1 to February 25 1964 The survey team then reviewed NUMZC's operating practices in regard to segregating or mingling of material assigned to the various contracts held by NUMEC If it could be established that material assigned to the HANL purchase order had been transferred to other contracts without a record of credit to the UANL account such transfer would appear as a loss on the KARL account This approach has uncovered the likelihood of such transfers having indeed OCCurred The referenced NUHEC correspondence to the Division of Nuclear Materials Management discusses these possibilities in sumn Jetstl lhtee and ether 95 3 03 - 9 re My r -- I 3 awncw USE - postulated practices whereby RANL material could have become mixed with material iron other contracts are - - - discussed below In a letter of July 8 1963 true we to want some substantiates the possibility that material from the HANL contract may have been mixed with other material 0 24 5 kg 0-235 as 002 which because of slight isotopic degradation was unacceptable to HANL only 19 8 kg 0-235 is shown as having been returned to AEC for credit to the HANL contract NUHEC suggests the possibility that in the course of scrap recovery 4 7 kg 0-235 from the HANL contract may have been returned to the AEC under other contracts By memo of Ottober 5 1963 from C Beltran RUHZC to F Porscher NUMEC an incident involving the degradation of 2 5 kg 0-235 of HANL material is described No evidence is available that this material was returned as a credit to the EARL job NUHIC suggests that it can be reasonably inferred that this material was recovered with other scrap material and not credited as HANL material '22 it which 313 conducted its scrap recovery operation has an important bearing in evaluating the possibility of NUHEC's allocating material from RestinghOuse Astronuclear Purchase Order 59-NP-12674 referred to as Contract 1231 to other scrap recovery contracts this is best explained in NUMEC's referenced letter to the Division of Nuclear Materials Management Appendix C and the pertinent section is quoted as follows The Nature of NUHEC's Scrap Recovery 92erations The possibility for the allocation of materials generated in the recovery of scrap to contracts other than 1231 is quite great in view of the manner in which scrap recovery operation was con- ducted j scrap recovery facility in a company handling a large number of special nuclear materials contract each year cannot be resrrvod for an period of time to 111 537 - 9- -- 5 2'31 Mw h m I use min 1g recover all of the scrap that may be generated under a contract which may require a year or more to complete and which from time to time may generate quantities of scrap material 0 necessity the scrap from a long-term contract must be scheduled for recovery intermittently with scrap material from other contracts Such was the case with respect to the 1231 scrap material major clean-up between jobs would be required in order to insure against the downgrading of material in an intermittent operation of this type Such a clean-up itself however will generate additional losses since material is bound to be lost in the huge amounts of solu- tion required to adequately clean the complex equipment in the plant Horeover since the scrap recovery operation involves a solvent extraction process one must reach near saturation equilibrium in the plant before extracted material is chemically clean Thus the first material removed from the process must almya he reryrled tn achieve clean materiel Correspondingly the material last removed from the process is as a general matter never pure enough to be used in end product and therefore again becomes scrap The foregoing suggests the economic infeasi- bility if not the practical impossibility of totally segregating each job in a plant with a view toward 'finishing' each job before moving to the next To offset these consequences it was NUHEC's practice to segregate material by contract only through the point of dissolution at which point the accountability under a given contract was established thereafter our scrap recovery equipment was operated on a 'heel to toe' basis without segregation of material between jobs Thus if scrap from ten jobs for example was processed in one recovery campaign certain assumptions had to be made in assigning the recovered material between the originating con- tracts This assignment was made on a basis proportionate to each contract's feed contribution mm ao e I 'Losses were calculated inxthe manner described - below We believe that this method of scrap recovery operation is generally consistent with industry practice a Disposition of 1231 Haterial 1962-63 Uith this information as background it becues pertinent to examine the scrap recovery contracts most likely processed at NUMEC during the same time the 1231 contract was active table I attached I lists these contracts we believe these jobs were run on a 'heel to toe' basis in conjunction with the recycle and or scrap material from Contract 1231 Excluded however are those a contracts involving the processing of uranium of less than 51 enrichment Since NUMEC maintained a separate reprocessing facility for material less then 51 enriched it is unlikely that such material would have been run on a 'hecl to toe' basis with highly en- riched material The total quantity of uranium represented by the contracts in Table I is approximately - 70 bilngvene n -715 Thee nhe var o1nmo out with an average overall 0-235 loss of ap- proximately 1 5 per cent or 7 kilograms The average 1 5 per cent loss figure '3s selected on the basis of our best estimate at the time of the losses eXperienced in our recovery operation A definite figure could not be established since in the 'heel to toe' process described above there was no complete clean-up between reprocessing cam aigns It is important to note at this point that due to the complexity end quantity of the scrap an hand during 1962-1963 there was a large uncertainty with respect to total plant accountability during this period As a result there was no clear evidence at the time to indicate that the 1 5 per cent figure was inaccurate in It was only within the last year during dhich NUHEC performed two large scrap contracts of 108 kilograms and 137 kilograms GRAD-D3375 that it became evident the the ONLY mmcm 08$ - -- do losses were greater than those initially - anticipated In both cases a closed accountability was maintained that is there was no 'cross-over' between jobs In the first case losses were 6 1 per cent in the second 3 0 per cent The second contract is approximate because final account- ability has not been established In both cases the scrap involved use similar in nature to that processed during 1962-1963 and ac- cordingly utilized nearly the same process chemistry and equi mont On the basis of our current experience it could appear that a 1osa factor of 3 5 per cent may have been more appropriate than one per cent On this basis the los es experienced under the scrap recovery contracts itemized in Table I could have been 16 5 kilograms instead of the 7 kilograms declared This would suggest that approximately 9 kilograms of 1231 contract 0-235 could have been inadvertently nixed and returned with material under those scrap reCo ery contracts - 6 15 NUMEC has further indicated that as a result of under- estimating its eprocessing losses on other purchase orders closed out before and during the RAN contract as much as 12 kg 0-235 more of HANL material may have been returned to the ABC on other purchase orders Thus after a close-out of all inactive contracts only the EARL contract remained as the identifiable point for all other prior losses and therefore became the final repository for those losses 1 I 9 6 16 In the survey 'eam's judgment there is a high degree of probability that EARL contract material was trans- ferred to other contracts in the manner described above 3 The survey team's review and observation of NUHEC's operations and the findings of other surveys of the a NUHEC operation since plant start-up in 1957 contribute in a large part to this judgment C nmcm USP may tin- 7P a u minnow USE of 31 7 z mndations 7 1 to prevent a recurrence of the circumstances which resulted in this survey to put NUHIC in s position to recognise and to minimise'its losses and to record and report to the ABC in timely manner losses material-unaccounted-for sctually being experienced it is recounended that me 1 Give added recognition to its nuclear materials manage- ment responsibility by establishing st an apprOpriste high-level adequate staff to deal with materials manage- ment with full support from company management 2 Tske inundiste action to Install a general ledger to summarise accounts periodically and to support data reported in material balance reports to the AIC Develop a subsidiary ledger to account physically for SS material by material balance area and by NUHEC job order number Create a chart of accounts job order numbers referenced to the project contract and purchase order numbers The account number itself should identify that the SS material associated with the accOunt is either ABC-contract material or leased material Establish a system of inventory identification such as by pre-numbering process containers or other comparable technique These numbers could then be entered on internal transfer forms and posted to records maintained for the different material balance areas Establish an internal transfer system so that internal transfers to and from material balance sreas end from one account job order to another within the same material balance area are docu- mented with transfer forms and recorded in the subsidiary ledger Issue periodically by material balance areas a report to management of ending inventory and losses which shows and explains losses by job order and the quantity and forms of material physically on hand by Job number QNILY '97Identify and uni-h the magnitude of 11 significant loss mechanisms and technical bases thereof Iranslato such data to and 0-235 content and record and report on a current basis lstablish inventory procedures and perform plant-wide inventories periodically but not less often than annually After comparison of these inventory quan- tities with the book quantities record the resulting gain or loss In establishing plant inventory procedures NUHEC should not ignore the need to obtain an adequate inventory of in-proccss material lstablish all control procedures in a procedure manual and submit same to the Oak Ridge field office for review and approval Process the large quantity of accumulated residues combustiblcs filters ash etc and return the SEN recovered to the AEC In so doing care must be exercised to identify and to process residues in such a manner as to permit comparison of recovered values with book values After such comparison the resulting gain or loss should be recorded Adjust the October 31 1965 book inventory to agree with the ABC's October 31 1965 physical inventory which establishes a 0-235 content of 521 179 grams In making this recannendation the survey team recognizes that there are uncertainties in this quantity due to the large number of heterogeneous uranium-besring residues on inventory which were not amenable to representative sampling Therefore upon rec0very some adjustment either upward or downward to the inventory may be necessary from time to time A detailed tabulation of the physical inventory has been provided to NUHIC Initiate a company-wide educational program stressing the high intrinsic and strategic value of special nuclear material and rc-emphasize the health and safety implications of careful handling practices USE ONLY re 0 nmcmusrzm - 13- 0t Vith MC OJ february 3 1966 the we aenior survey teen peraonnal net with me management to diacuaa the findinga of the aurvey and the recounendationa that were being made nut Iceting ia emarired in a morandun to the filea attached ea Appendix D A NUMEC letter dated February 5 1966 letting forth their camenta and actiona ia attached aa Appendix 2 - 8 C McDowell Director for Control Diviaion of Nuclear Hateriala lianagenent QIFFECLXL USE ONLY - 2% - - '44 a mu a it I 5r Ono trAttachment 1 harms or was WOMEN mm PROCEWRES product on Sauter direct reading scale lrl'he balance is checked with standard ntrol staff about every two weeks Inner weiyxed their with sensitivity of one gram weights by the mac quality co i'his banshee been reviewed sidered fully adequnte rum took grab samples from ea 1e richer in uranium than the parent This could possibly lead to a snap On a series of seventy-five batches however the average analysis 0 6657 a 0 3 sanple while the average WARE analy- sis on their own samples was 0 6618 sample These tw0 averages are not statistically different but even if it is assured that the difference is due to biased mes samples the magnitude of the bias is only 0 27 mac used analytical method 1 101 published in @7029 'Selected Ieasurenent l- ethods for Plutoniu and Uranium in the Kuclear Nel Cycle with the modifications discussed below The method is believes to be p 311 z 2 w-ei an of 0 16% relative under con- ditions of routine use Procedure 1 101 is reprinted as 3 Some laboratories have experienced difficulty in avoiding loss of sample due to poprpins' during the igzition step during which the carbon oxidizes in sea and the uranium converts to Ugga To preclude this placed their sasples on a bed of A1203 ch had previously been 101in to constant weight m should be an effective means of 'svoidina loss of Procedure 1 101 suggests that the addition of filtered women to the ignition will speed the analysis ma adds shalt 200 31 of filtered worsen per ninute mutively the thickness of the car constant regardless of particle size This means that the average uraniua concentration is greater in urge ones Like all mixtures of particles icles tend to settle to the bottom the top of 0 container my be rich in large particles and corres- pondinjiy rich in ursniu-s 1' 0 0 - A'iif k l tuk d cxw 1'3 3 so - - - Xlr w' 1 4 wraniun content agreed to within 50 game on all but fourteen ahipmenta and to within 100 gram on all but nine ahipmenta 3 the largeat aingle difference was 258 grama 0 these were more or leaa randomly diapereed in time however and were equally divided between HANL high and HANL law The net total differ- ence in uranium content between the two laboratoriea ia 15 grama EARL high or only 0 0022 A graph of theae differencea ia attached c For all practical purpoaea 0-235 content agreed unleaa there waa a difference in uranium content The net total difference between the two laboratories ia 37 grama HANL low or 0 0051 Attachmenta Details of Investigation A Graph of S-R Differences Hethod 1 101 Gravimetric-Volumetric Determination of Uranium in Oxide-Organic Dispersions I u harms or was mmum mm PROCEWRES - mm - Attachment 1 men weighed their product on a Sauter direct reading scale with a sensitivity of one gram The balance is checked with weigits by the mac quality control staff about every two weeks This balance has been reviewed by member of any staff and is con- sidered fully adequate RIM-XI took grab This could possibly lead to a batch On a series of seventy-five batches analysis was 0 6657 sis on their own samples are not 5 difference is due to bias is only 0 21 RUM-12 used analytical method 1 101 publi 'Selected Measurement t'ietho m1 Cycle with the nodifieat samples from each batch for uranium anafysis ample richer in uranium than the parent however the average 0 sazzple while the average mm analy- was 0 6613 U g sample These tw0 averages tistically different but even if it is assured that the ed the magnitude of the bias shed in rm-7029 ds for Plutoniu and Uranium in the Nuclear ions discussed below The method is believed to be capable c rubieinn of 0 16 relative under con- Procedure 1 101 is reprinted as 3 ditions of routine use laboratories have experie of sample due to popping' carbon oxidizes in 002 and the this placed their been ignited to constant weight avoiding loss of satple Mcedurc 1 101 to the ignition mrnace ced difficulty in avoiding loss during the ignition step during which the uranium converts to 05 To preclude samples on a bed of A1203 wgich had previously This should be an effective neans of suggests that the addition of filtered ongen will speed the analysis MEG adds about 200 nl of filtered ongen per minute coating on a particle is uraniu concentration ones Like all mirtur the tOp of a pondisgly r1 iclcs tend to settle to the bottom container my be rich in large particles and corres- ch in uranium Qualitativcly the thickness of the can constant regardless of particle size This means that the aver-ap- is greater in large particles than in all es of particles sand for example the finer Thus a grab sacple ma Missed method 2 1 01 also in mm to verify tha isotopic degradation had not occurred Since this method is lessJ' accurate than the mass spectrometric technique used by Goodyear - Atomic Corporation AI-23's Gaseous Diffusion Plant near Portsmouth auto to analyze W6 delivered to men the Goodyear an no used as a basis for product shipments - Scales and balances used by WANL have been revieved by survey teams as part of required annual surveys Since there was no basis for suspecting a bias in net veiyats no additional review vas made for this investigation progressively split into two approximately equal portions until the desired sanple size is reached This is a standard sazpling tech- niQue for mterials of this type there is no basis for suspecting that the samples thus obtained are not representative of the parent batch - VANL used a riffle sampling technique in which the batch is VANL also used method 1 101 from TED-7029 In fact the laboratory at waltz 3-1111 which perfomed the analvces ror wmn was responsible for developing method 1 101 and fOr esti- - mating its precision at relative WANL does not use the aluminum oxide bed but does follow the in mthod 1 101 that ignition begin at 250 c and that final ignition at 900 be carried out overnight Under these conditions of slow heating there should be no sazple 'pOpping VANL used methods 2 101 and 2 106 to determine 0-235 content In cocbination these two methods are more accurate than the single nethod used by ran-3 but still not as accurate as the ass spectro- metric analyses This undoubtedly accounts for the small differences noted ADDITIOICAL COT-2 2233 Both laboratories have confirmed their procedures using 3 certified chemical and isotopic standards The NBS chemical standard is certified to 0 027 including a conservative allowance for un- certainties in the of 0 The isotopic standards in the range of 93-7 0-235 are certified to 0 057 awn-e 1 '1 5 I n foJubCand Inn-ac hove not encased in fox-n1 oomph Mover ha exchanged tangle of' 31mm attended with 4 uv Bum-Vick Laboratory 331 Union Carbide Corp 1 12 the no pug- 33 Alums Scientific Laboratory MSL end nuclear m1 Services m - hmssee - Avenge vulne- obteined ere fomvs mm 0 6985 We sample I 0 6979 Y-IZ - IASL 0 69 63 a 103 0 6937 Since NBL 1-12 and IASL used high yrecision titrinetric procedures while mm and 35 used the routine mvimetric procedure discussed above the best estizate of the true value probably 1 shout 0 696 It is not unlikely that NFS and possibly IASL experienced scan Loss of sazple due to popping' during ignition 1wm oux nn-oraoan _uh -- - - - -1- - - nal 1 L 111 n 1 v 1 list II LI it I I - 2-111- LII '10 11 Cult lad-llflu299 all APPENDIX A - Attachment 3 M-rz-z-oa 1 30 1 DETERMINATION or URANIUM IN OXIDE-ORGANIC - 0' - a A Scope This method is applicable to the determination of uranium in uranium oxide dis- persions in graphite and in Or other plastic-dispersion media I Summary of Method The material to be analyzed is thermally decomposed and the residue is ignited to Uranium is determined either graVimi rically with correction tor im- purities or volumetrically EC Procedure l Grovlmcirle a ignite a platinum crumble or dish to cOnstant weight at b Accurately weigh a sample eStimatc-i to contain ram 1 to o uranium into the platinum crucible and ignite it in a mu le furnace For or other plastic samples be n the ignztion at about Atter all material vola- tile at has been 3 12 12 i0 500' c Continue the ignition until all material vola 2e at has been remOVed Ignition or 30 min at may be Suitiment for plastics but an ignition time of several haurs to overnight may be required or graphite mixtures Passmg lil- tered oxygen Over the sample accelerate the ignition d Alter ail mate a1 volatile at has been remOVed ignite the sample to constant weight at in air - e With an emission spectro raph determine the metallic impurities in the ignited sample See Methods A B and in Lie Appendix f- 1 Calculate the uranium content as described in Method 1 100 2 Volumetric a Accurately weigh a sample estimated to contain about 200 in 0 7 - uranium into a platinum dish 0r crucible b unite the sample to constant weight as describedin Sec Cl 0 this method c Dissolve the residue from the ignition in 3 ml 0 concentrated nitric and d an insoluble residue remains the solution through a Whatman i in - 'Sibautted by I V hue Argonne National Laboratory Argonne ill 94 vii 70 V r minimum MEASUREMENT 95 lb ti tiller paper hardened and wash the paper and residue tree 0 acid with bot water Retain the filtrate and washings e Mb the paper and residue in a platinum crucible Treat the residue in the platinum crucible with a tew drops oi sullurlc acid 1 l and 10 ml oi concentrated hydro uoric acid g Evaporate the contents oi the crucible to dryness and ignite or to rain at h Dissolve the ignited residue in 5 ml oi concentrated nitric acid and quan- titatively transier the solution to the retained iiltrate and washings iron the initial mtratiOn 1 Add 5 ml oi concentrated suliuric acid to the combined solution and evap- orate to SO iumes 1 Cool the solution rinse the sides of the beaker with water and without adding additional acid repeat the iuming twice to ensure rem0val oi all nitrate ion - k Determine the uranium content as directed in Method 1 200 beginning with Sec F6 step a - 1 1h327' i x I b TRANSPERS r0 FOREIGN ENTITIZS icenae - Uranium Enriched in the Ieoto luelear Materials and Eguignent Corooretion AoolloI Omen 111 USE andmxa 23 or the Period December 1 1957 to October 31 1965 0nit Gram Date Materiel Percent Shipped Destination Description Uranium IsotOpe 0 235 8 7 58 0 3 Exhibit Switzerland 002 7 521 19 94 1 500 10 30 58 Prence 002 4 407 1 50 66 12 30 58 002 487 969 1 50 7 359 12 26 58 002 489 886 1 50 7 387 12 12 58 002 487 422 1 51 7 350 12 17 58 002 488 567 1 51 7 368 12 19 58 002 486 600 1 51 7 338 1 30 59 002 321 461 1 50 4 848 1 9 59 002 485 360 1 50 7 319 1 14 59 002 324 227 1 50 4 889 2 25 59 002 74 330 1 50 1 121 2 25 59 002 43 923 3 49 1 533 4 22 59 002 170 119 3 49 5 935 5 14 59 Canada 002 Powder 39 989 6 99 2 794 5 29 59 Prence 002 70 241 3 49 2 451 0 100 451 3 49 0 99 7 3 59 Italy Uranyl Sulfate 7 523 19 94 1 500 9 4 59 France 002 70 006 3 49 2 443 9 18 59 002 72 059 3 49 2 515 10 16 59 002 16 966 3 49 592 11 10 59 Australia HeteI Powder 500 93 40 667 4 20 60 France 0 Dioxide Powder 127 19 83 25 4 20 60 I ete1 lend 21 93 00 20 30 Normal 0 11 9 60 Japan Uranium Dioxide 54 067 20 00 10 732 11 10 60 0raniun Dioxide 22 231 20 00 4 413 7 11 61 Prance 003 Powder 107 384 2 984 3 204 7 11 61 003 Powder 1 475 90 00 1 328 8 24 61 0 Dioxide Powder 15 000 20 0568 3 009 4 19 62 0 Dioxide Pelleta 9 130 4 025 367 4 19 62 0 Dioxide Pellets 9 110 4 52 611 4 19 62 0 Dioxide Powder 5 265 4 50 238 6 15 62 Italy 0 Dioxide Pellets 47 976 19 96 95576 7 31 62 Japan and I 030 Powder 21 93 16 20 8 24 62 Netherlands 0 Dioxide Pelleta390 187 3 136 12 236 9 7 62 0 Dioxide 370 669 3 136 11 624 10 11 62 002 Pelleta 316 139 3 813 12 054 QIFFILCEAL USE 333ng - mcw 081 or '1 1 9 Unit Gran Date laterial Percent beatination tion Uranium 10 12 62 letherlinde Pelleta 313 986 3 813 11 972 11 2 62 Pellete 58 385 3 813 2 227 11 2 62 002 Pellete $32 553 3 136 1 021 11 2 62 002 ram 104 754 3 013 5 994 11 23 62 France Powder 6 000 89 82 3 593 11 23 62 A Ponder 10 0279 19 86 1 991 11 30 62 Netherlande 007 Pelleta 19 423 3 136 609 11 30 62 Pelleta 1 664 3 813 63 1 27 63 Italy 61 elad 0 03 Fuel Platea 12 360 19 83 2 651 5 9 63 2renee 0 Powder 300 227 6 027 12 090 6 25 63 600 Powder 20 998 60 03 12 605 6 26 63 A00 Powder 20 998 60 03 12 605 9 26 63 United Kingdom Puaed 002 88 125 2 90 2 555 3 27 64 Canada 002 Pelle a 131 008 6 00 7 860 3 30 64 Germany 002 Pellete 286 1 00 3 3 30 64 002 Pellets 282 1 50 6 3 30 64 002 Pelleta 2283 2 00 6 3 30 64 00 Pelleta 286 2 50 7 3 30 64 002 Pellets 285 3 00 8 3 30 64 002 elleca 286 3 50 10 3 30 64 002 Pellet 281 6 00 11 3 30 64 002 Pellets 282 6 50 13 afanfna no v 11 r LAS QAA 5 07 22 401 4 20 64 France 106 Powder 84 809 6 00 5 089 6 24 64 Japan 076 69 230 5 704 2 808 6 24 64 UF6 5 297 6 981 264 5 18 64 France 002 Pavdor 300 000 4 00 11 970 7 13 64 ADU Pouder 100 000 59 98 59 980 9 2 64 002 Pellets 130 513 3 99 5 207 9 15 64 Japan 076 166 721 2 598 6 280 10 13 64 Sweden 002 Iovder 52 578 5 00 2 629e 12 14 64 France 002 Powder 68 916 3 99 1 952 1 13 65 Italy 61 eiad 0308 Fuel Plates 5 034 19 83 998 3 13 65 France 00 Powder 681 690 3 977 19 157 6 5 65 AD Powder 100 000 59 93 $9 930 10 4 65 Japan Poile and 002 Powder 6 93 00 6 Total NUHEC Foreign Transiera 12 1 57 to 10 31 65 8 788 246 gag gzg lndicate sales tr0nsactions which equal or total 191 kga uranium and 11 kga All other transactions reprcSont material which is leased 0-235 033313 1 um 55 3399 022323 l I -011 ogi 0 I Icin'll In gun 0 vgagzuam $82 our acnmn 90258 8 Sam 60 me acoumo Unnoowou Unqunuou on acowoun Khsumononn cannon wUNumm wuonw maunm u n wowum 60 3 moo on H awn nounuo on Mumv wao nonnwu on are Uu umwou on zuowonw Mnnmuunwu munmmanon wm o nonmuoumw u N3 03 03 nan mu uhnnw Hum wonowmu M5 on and no mononnhuu on wnwmumuuwou ow mm on Hwbu Unmum 32 4 5 unamuwuwwoumw mmun unnumwu vpuowwuo ouwon mo unnuwuumm xw rwuununmw cam uPu wnuwunm on $5 haouunwu Mama rbdo pm Mon wman mmunuwwmwuw aw Huwwu wumwmowwu uwo o ounwuu w Mumonwwuoo on Cnl iit I30 U OOMOUKOFLU pa aw mmwwumma woumuuwa nmnm Ma unmw um nunuwmx um awn nonuhmmwon m cannon wan cmmnuwmnuon Houw uvww Mww wnaw nmuw ww wuu Muou Wu om wwa nun 3% an wuouuw sway wonmouuow woousno vuuw om nun mun whu wows awwudnw mwon own mum us mouw unu nuoou nunwnu on Ha dwa uaoowwmuwwonm on unnu wanwwu on wo o asnu on unqm sw nwo Muuoww uwou on w o mumw nu bk 0 monouuvw wunmuuadunw rouonmnu HM Umwuo o Mo souwn du wowwmuw MM an souo no on mowdw an 0091 Iv vwoumww no Munupuwu own dau nuuwwuwu om nwa muqununnou on we shaman vnomopuww mow canon ouuon Aunmmn ooznumov Nyr o 1 Q a '0 cuuwvuw ow uw mg nonuuwnu H3 a an no MHuoo rpm Rhona Mb vanuwaonp o pa Havounusn no aw manna a unua on uwa wwomuou an no wwonouu namunnan gamma 0w nun nuuwunon who om nmu wo ooh de tnw u Huaw mauve 32 mono be nononuu n a0 2 LSI I LUIIO OIU up wuaownuw wunuwnn Nu won Hunuwuuwm hwy vnaumwbm on nzo a 0 - a Mr Douglas George December 29 1965 blended nateriel into sinter stock it sintering of the ressed material 5 crushing of the sintercd stock to forn nelt stock 6 melting of the material by direct arc to for carbide ingots 7 crushing grinding and sizing of the ingots to fern fine on-size particles 3 spheroidisin of the particles in plasma torch 9 carbon coating of the spherical particles in an induction heated fluid bed reactor in an atmosphere of methane and an inert carrier gas Although the foregoing is only a brief description of the process it may serve to illustrate the conplezity of the manufacturing operation which may be characterized fairly as an extrenely dirty and dusty process As described below more fully NUEEC's product yield in this process was quite low necessitating an extensive recycling aterial in onder to deliver sufficient proiact to the custoner 3 tensive recycling of material as you know inevitably involves a repetition of losses As noted earlier the nanufacture of this material was for NUEZC a first of a kind contract it has never been performed again by the Company Consecuently oer irsct experience factors are linited in terms of comparing the losses on this job with other Nevertheless we believe it is not inconceiva le that high losses -- perhaps up to 30 kilograns of natcriel or nay have experienced in this unique and operation For vb instance on 'ozs invoiVLn 'ne 5 nunoer of unit operations out on paterial inherently less dusty in nature we have experienced losses of the same magnitude Even assuning however that such losses were experienced this will not fully explain the iispositi of tne total ancint 5 3-235 presently unaccounted for appronir'tcly 6 percent of tn totel 3-235 reczived by 33226 for pro- cessing and the contract Such -n explanation nst be derived from an exanination of scrap recovery op ration Scrat Centr'ted 'dor 1271 Contract The basic reference point in an i jui-y into the disposition of 1231 material nust be the anotnt of scrap 3 nerated under the contract a as oscs i co ten losses are defined as both the eccountcd for and t e oe- 'ttsci'l not sbinred to the custonar scrno er Douglas George -3 al Decenber 29 1965 The records of IKE-20's CP-Z facility in which the initial conversion of to Uoz'was performed sh that 12h0 kilograms of material entered the fa ility or conversion under the 1231 contract It should be noted however that only 1087 of containing 93 percent 0-235 were furnished by the customer for conversion under the contract The difference 153 kilograns represents the quantity of recycled aterial required to cake the final product accepted by the custoner It is therefore apparent that 153 kilograms of recycle ater-al were at sone point reprocessed in RUESC's facilities Illustrative of the process by which such recycle naterial is generated is the initial conversion to CO in the NUKEC's records show that this conversion was in1s$ 3discrete batches of pproximately 163 272 252 150 and 250 kilograms each spaced three months apart between October 1952 and October 1963 One would expect to leave benind in the first pass through the facility approximately ten kilograns of rat rial fro each batch This non-yield uranium settles in clean-up materials and in the for of other wastes which are subsequently recovered and recycled Thus in the initial step of the process at least 50 of the 153 kilograns of scrap described above were generated It is also clear in view of the fact that 108 kilograzs were a 3 u- 5 so -- process 2 produce 7 3 o- pro--oou-o a a3V95--hir cone-v of material process losses aside whi it was required to reprocess Finall be 5111 d of U0 prepared by ron th afor on custoger This material too require ioncd scrap were rejected by the rocessing 65 kilograms of uranium in the for C- In sunzary a total of 5 2 kilograns 153 32b 65 of scrap uranium generated_under _he 1231 contract were at vari us tines injected into scrap recovery strean It is in the processizg of this 5b2 kilograzs of material that there exists the greatest possibility of mixing and consequent allocation of special nuclear material to other contracts a The of I ll C's Scrap Rec var Operations The possibility for the allocation of materials generated in the recovery of scrap to contracts other th 1231 is quite great in view of the manner in which scrap recovery operation was conducted facility in a company handlin a large number of sls ezch ycir ccnnot be reserved for an he scra hat may be generated 30 00 0300 000000 LT 60003000 no noun 800 0 00500000 0300 0 0% 000 0000 0 @000 00 0000 00 0093000 005 $0 30 9 3 3000 00 0030 0 0% m0500000 0005000000 on 00000 3000000 on 500000003 000 00000 0000 0 H05mu0003 00500000 0 000 00 000005 00 H00 00004004 P5000u0009 03 00 00000 00000009 0000 00 500 005000000 005 0 00 050 0000 500 0 000000 00 050 Sup 00000 0 0000t0w 0 300 3005 00 0 00 08an d0 000 5000 05 00900 00 0505 0 0N00500 050 5w 30000 03 05 05 0500000000050 000000005 E0 0300 9000 0 0 000030 0000 0020400 M0000000 09300050 H00000 00500 3000000 00 00 00 H000 05 000 sumo 00 0 0300 on 000 0025 00 0000 00003 0H005 000 00 00 30 050 50 H5050 38 00 30 00500 0 0 0 0003 0000403 8000 00 05 050 3400 0 8 00000005 M00003 00 0 3 00 5000 0000000005 0005000005 05 07 0 050 0 0000 00 0000000000 0 000003 00 30 100050 0005 3 00 000 3 000 0 000000 00 1 20 H 000 000 0 000000 00 000 00 000 0 200 00 00700000 0H005 000000woumunmwu 000 0 000003 H000 000 300 0 00 0 000 0000000 00 00 0 05005 00000 0 00 00 M000 00 0 0 3 00 00 0000 H5 M03000 05m 000000000 0mg 00000 00 0000M 850 000903 0 030000 0000 00 00 0 hc thro 4 0 0w Mm 500 000 00000005 on 0000an 00m00mmunnw 000 0 00 I0 0 0 50 005 0 0002 00u00u rvauc 0005007030000 90 00 Hahnn 0 00000000 00 00m00m000 H0000u0w UV 00500000 ouww 0wwonmw 0wa r11 00050 nuumuwuuwuu 00 awn M0000 000 F0m00 0 00500000 00 0000uw00w00 000000w000 000 00000 0000400u 00 0000000n 05 0 500w 00 00 00000 0000000 00m0 M00005 0% 3000000H 0003005 000 H300 0H me 00000 M003 05 000 000 0x03wH0 s00 000000000 05 050 0000400% - 0 000w5 0000H000000 500 00 00 H000 Mb 000um500w 050 00004000w 8000000H U00a000 000 000m0300w0w 000000000 HWM0 00 3000 05 0 U00p0 0000000005000 00 000w 00300000 0 0000 003000000005 H00000 000 00H00H0000 05 050 305500 000000000 wowou 80 0w00 0WP0 300300 on 00000 0000 0Mw 0u0000005 H0 0050000050 0005 0500000% M0000000 I240 -30 8 l l nf 000 f0 b 000 000 0005 mm maxim w 00 9 00 032003 3 035000 000 0 8803 001 0330 no 9400000 050 0000 0 00500000 0 000 Hhxoww 000000000 00 z9Mo 900005 00 0 00000 rm 000 0 Hub 0 0000 00 800 00 H 0000030 H0000 00000 005000000 $0 0 0 000 0 00 04 5 00 0 500 00 000 00000 #5 0 903 030 0000 0 0003 0 00 0000 umwp H w mnw 0900400 000 0w000 005000000 00204 43 000000005 00 0 H000 05 05 0 0 000000000 030000 000 0 005000% unuwwu0w N00 3000000 3000 m 0 0000000 00 00 nuanan 3 00 00000 6 r be W040 0'00 00 - u I 0 If In Us an 600 363 no Hem as nanny naoudp w on awouupn ow 0w nounnoonu M auvwo M omwnoxunonoww ago on uumum awouo uodo non as war on odownno o owoww annum Home on vow oosv on aw o ounwo vow can you wwmnuo sou ouonwon on so you on 058 wou ouopnhuo on we wvuo ow arc oxuonuonooa 9 can owononwou ownuw o uuwuuo nonwm no Go 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Douzles George -7 I hope that this information will 10 December 29 1965 7 assist you in your investigati this rattar Should you desire any further infonution plegse do not hesitate to call on us a Very truly yours S A Weber Accountability Representative l' ooq F' ARR bron - July 8 1963 Ref C0-123l Mr Johnson Purchasing Department HeatinghOuse Electric Corporation Astronuclear Laboratory P O Box 10864 Pittsburgh 36 Subject Status of P O 057-NP-12674 Dear Mr Johnson On 7-3-73 lot numbers 68 77 and 78 were shipped on the above purchase order The total of shikments to date minus reject material is approximately 440 kg as uranium Lot numbers 76were completed but rejected at NUHEC on the basis of substrate carbon analysis below specification Material that would have made lot numbers 82 and 83 was rejected at NUHEC before coating on the basis of low carbon Recycling of the above material has been started Ihe last 30 kg of recycled U0 that was to have entered the system was found to be degraded in isotope consequently this material was scrapped Approximately 150 kg of has been converted to 00 and is ready for carbide production We are currently shut down for AEC inventory and plant reroofing we will start carbide production as soon as possible after the roof is complete We have scheduled 3 and 4 shift operation for completion of this order Completion will require 6 weeks of production operations with delivery of the first lots 3 weeks after startup We trust that the above information meets with your approval If you have any questions don't hesitate to contact no Very truly yOurs A a Kasberg AHK mhb 2'9 5 NUHEC um Purchase Order 59-NP-12674 Status Report - As of December 28 1963 I All Values of Uranium OPERATION Uranium Received Converted to Oxide Arc Helted Virgin Released to Spheradize Classified Final Processing Released for Inspection Rejects To be Certified Certified Shipped 78 of this quantity has been transferred to HANL account at NUHEC L A Hughes CUMULATIVE 1240 1140 1114 1095 1059 869 794 72 42 90 $90 9 - a - 1 1- Corp m Carbide ue-lea Comm 009 9 5 - mung- 1 a lo_l lilac 3 Mo 9755 3 U30mums rum 1 03 CM F - 6 10m a l cnaa 0 - 0 moan-0 0 -u an Ii ndtunadai K-w I i 3 31 Helm 807 from intern - sc'orr rccovcr thus v 0 mm-x 1231 gnu-n c fut-I 1 93 9'3 0'0 It'a o'l mm x 103 I30 91I10 I 121 - no I 30 10 DWI 1 8 23 9 - 11-22-62 - 33 '9 91995 - D St to ol tuck c's lag- nut OIonnt l Hd O-- - - w mar rz zzr5 mm ACCEPTED- 0 m In I ll fond-LL If 5 3 331 - glow-1 6 1m o 1 1 10-03-- - - -- uo 0-0 -0 0 o 2 1 37 3806 0 - u 00000- on c-Ono - - 00 -- 60' 0 0 77 l 0 n 5t nauacneoPorscher DAT33 October 5 1963 F303 0 Beltran - - - Xix-up of Boats Between Job 1231 and 0723 Depleted I At about 10 00 A X on October 3 Jim Hart agreed to process a rush Job for Roy Cline involving the reduction 1831 grams of depleted binary powder through the Lindberg mesh belt furnace Verbal instructions were given by Jin Hart to the furn ce ooerator Spang for the immediate reducti of the depleted inary Spang's primary function at this time was feed _rep ration Operator for colunn but he was feeding trays aa -- A of 5 uavc into the reduction furnace as tine permitted Spang placed two ennty boats before and after the two boats containing the depleted binary In th neantine Lloyd Hughes had arranged for 3d Wright to tenoorarily transfer Healer fron PC-S to t e furnace oaerati in order to reduce 1231 material on a full tine basis Kepler was not apprised of the no be ts of depleted and treated all beats existing in the furnace as 93 Huznas did not know there was depleted in the furnace an Hart did not know pang had been replaced Cctr'rtenaes 795 I 5 C-Z35 C Ellison has effectively upgraded a sample of the mixed material to 37 73 Zbe upgrading is possible due to the distinct chemical and ohvsicul di fercnces between t e depleted binary and the enriched UO Tn value difference between the 57 73 material and the 933 material is J3w 7ne incident cost us this 38 plus the labor involved to a upgracie the nixtcre and the labor expended in nakin the depleted binary and the nriched 3303 It is estinated that the total dollar cost of the incident is less ni $300 There is an equal or greater value which can be assessed to the ason that was learned and discussed in detail with all Production Supervisors and Foreaen What was none xroraa l Xatarial transfer for was not used - - 2 Jritten inatrtetions were not zivcn to the operator 3 a -naa -n - s so infaxnaa a tn tern 0 In-- -uo gu bI O Mai 2 2 day zalegf ung v a total of #357 grate of nixed enricbtent resulted containing 60 7 2- was 30 riwht as wright broughzothe relief nan Kepler up to the 69-2 Forguan Condo 2 The calcining boats were cleaned out prior 0 and after the Bepleted binary was run 5P-2 coaaerated with C3-3 by accomzodating their gazediate need for the reduction of the depleted binary - 'oodoa 0- -I - I l cm-ga u a rm-r we co or vista 42w 9069c or - 39% u - Magoo ti S arm 9 9 w 3 30 619 96t SC 0 9sz 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9 '1 0 arm Wan an 42 $53015 plci'z a 20 t9 9px 21-333 zz C916 69 rum my-m t 29 1529 want ma lwquJ-V 4 - - 0 3i- - I swirls3 11 ugm' can my - mm you cams scam-v I 31va - O a in tut 0 a 4' 533 13FORM mm Mei b'r andum mu - - ears 1 m6 3 8 George Director Division of luclear Materials Hansgenent so sans super mummwc-mm3 1966 and 8 D Marshall OR net with Messrs Shapiro Lovett of for the purpose of discus t ations resulting from the survey nade at me in November 1965 On February 3 1966 n 2 George 8 c fr c'Do we soles He explained the purpose of the neeti was to review with sum lansge- Ient the survey findings and recmendstions to assure that we Ind not aisrepresented any facts or had not marenphasized unimportant points he also called attention to the fact that we were aware that sane of the recmendations had already been acted upon by RUMEC including sane aspects that had been underway at the time of the November survey We asked to be brought up to date on the current status of such actions and requested that MIX-EC confirm these actions and provide a schedule indi- Vben mn lrl be v -v on that some were obviously recomenc xions of a continuing nature and than in effect would never be finished was given a copy of the IBM run of the October 31 1965 inventory including a run of the dollar value th'ereon 'i'ney were also provided a copy of the tabulation of the guns spectrometer data on the filters He agreed to send a reconciliation of _the October 31 1965 inventory sumo was then handed copies of three sections of the draft survey report Sec 3 - Summary of Findings Se 6 - Discussion of am Losses and Sec 7 - Recomendations After they had read these sections Dr Shapiro asked that NUHEC personnel be excused from the meeting to discuss the sections among themselves After nore than 2 hours the neeting reconvened Dr Shapiro had a number of editorial suggestions which we accepted the more important of which included a definition of the word 'lnss as a direct part of or as a footnote to the emu-y we pointed out that loss was already defined on the first page of the report but we would asks a special point of referring to that definition in the nary h Shapiro also requested that the HUME letter of Deceaber 29 '7 1965 which discussed in some detail the NUTEC processes and practices and 3- ethich we used extensively in preparing this report be attached to the re- port as an appendix He agreed to attach the letter At their request we an US 54 153331 gmuu pm axp Ha lit-4 - ' amcwalso agreed to quote ma the letter in our discussim of the mo losses rather than to paraphrase and summarise it as we had done m Shapiro then went over the attached recommendations as presented said he felt they were good recmendations and that a umber had been completed with practical all others being significantly as the road to ward completion Specifically Dr Shapiro commented referring to the recommendations by the same nulbers as used in the report 1 his recamnendation is accomplished as is evidenced by the fact that he hired one of the mm staff 7 2 Invett He agreed that a long step towards accomplishment had been taken but called his attention to the fact he had made personnel changes i in the past and that such change of itself without continued personal interest on his part would not assure long-tern con- tinned satisfactory performance 2 Dr Shapiro agreed with the general objective of the six detailed 5 portions of this recommendation and cannented as follows a be general ledger is now in process of being prepared It will be completed in a few days and will support their January 31 1966 Material Balance Report to the Oak Ridge Field Office b The reconnended subsidiary ledger is now in use for almost all plant areas and will be completed in the innediate future c chart of accounts has been drafted and is expected to be completed and hilly in use by the end of February d Dr Shapiro agreed with the need of a system of inventory identification but asked that there be sane latitude to achieve the objective in another fashion than as specific- ally recommended He agreed and the recommendation has been revised accordingly s Il'he internal transfer system is now in practice throughout almost all plant areas and will be instituted in those re- Iaining areas in the immediate future f Internal management reports are now being issued as recu- aended - 3 Hort has begun to accomplish this recommendation In discuss it Dr Shapiro noted that this really was a never-ending recon- nendation oIFFnacm USE 0mm - -- p513 only - 0 b his recomendation resulted in an extensive discussion as use - interpreted it to mean that adjustments would be Iade to - records regardless of the precision with amich an inventory bl been taken I recognized that operating needs of a caspaw fa a 'ball-park inventory night result in routine inventories which would produce the operating results required but which would not hve the accuracy needed to adjust the records the other i band I pointed out to Dr Shapiro that the recounendation was to establish that not less often than annually a precise inventory E would be made Even here we recognized that a book value for certain portions of an inventory night be a superior nuaber to we obtainable by other methods After this discussion Dr Shapiro seemed to understand the thrust of the recouaendation and agreed that it would be accomplished no changes in the recommendation were proposed V 1 a'f In 5 expects to have a draft procedure nanual available for re- view by Oak Ridge in March 1966 9 6 Dr Shapiro noted that was now cleaning up its residues on current Jobs with approximately four nonths lag Regarding the residues on the RAM Job it was noted that had agreed with the Comission that the residues would be processed by lovember 1966 - 7 ihis recon-nendation apparently was the cause of the two-hour pri- vate meeting NUS-2C expressed a reluctance to adjust their - October 3l st book inventory to a fixed quantity as was recomended Ibey requested that the recounendation be revised to adjust the - - inventory based on recovery data as it became available noting that recovery would not be complete until November 1966 They also suggested that the recomendation was a departure from the agree- Ient signed in November I disagreed stating that the agreement Iig'ned in November recognized that NUMEC would be billed for the total amount of 0-235 not returned to the LEI and would be given a year in which to recover and return material as an offset to the total bill and make full payment of an outstanding - anount I stated that I knew of no agreement with 2aan which i' would pemit the maintenance of an inventory record different run that obtained during the survey use raised a series of questions dealing with the uncertaum of the data particularly those in the residues i hey pointed out that there were quite large individual differences between low data and the value carried on the IUMBC books I pointed_ out to Dr Shapiro that I had recognized this and explained that M33 ONLY after applying t'te analytical results to the parent batch there was good agreement with the date carried by Isaac I recognised that during recover of the residues the inventory might very well be adjusted upward or downward with compensating adjust- Ient in the reported loss I also acknowledged that there light be as such as 5 to 10 kg uncertainty in the residue inventory However I pointed out there was no better data available and that the sampling plan used by the ABC had in ly'Judgment con firmed the RUMEC inventory quantities for the residues as being reasonable Therefore I saw no way to alter the recommendation I agreed that if he had additional date that he would like to present we would be glad to review it and we would make our- selves available at any time I invited Dr Shapiro to re- examine his data re-evaluate his inventory if he felt Justified in so-doing and submit such data to me for review I also told him that if necessary to get to the full and complete truth I would have the residue recovered at Oak Ridge I later told Dr Shapiro that I would have to back up on that offer as I had no authority to commit the ABC to an expenditure of some $50 to 75 000 for this purpose I asked Dr Shapiro if he would ad- just his inventory records should the residues be recovered or a more extensive sampling plan be used to determine their 0-235 content His answer was that such an adjustment would not necessarily be made because there still material from the pit which had not been incinerated and evaluated I a I told Dr Shapiro that I thought there was no further usefulness in discussing this point further that he should set his views in writing and I would see that they were made a part of the record I told Dr Shapiro that I would assure that the survey report clearly reflected that there was an uncertainty in the inventory of these residues and that upon recovery a quantity different from that reported might be found 8 'Dr Shapiro showed ine a draft educational program which I believe is a step in the right direction He assured us that within a - a very short period of time all plant personnel would be given a trainins 1ong the lines suggested Dr Shapiro and Jack newnan called me on February 5 to read the letter be- ing sent in response to my request of February 3 this letter states that IUHZC will now as of February 28 1966 adjust their inventory to reflect the quantity reported by the ABC survey teen It also reiterates that 3 Jo further adjustments upward or downward may be necessary as recovery pro- gresses and that a final adjustment will not be made until recovery is com plete on November 23 1966 Enclosure Recocaendations of Survey Tea - IUSIF EMILY 11 0 Isomendat ions 7 1 In prev'ent a recurrence of the circumstances which resulted in this survey to put in a position to recognize and to minimize its losses and to record and report to the an in a timely manner losses and material-uneccounted-for actually be- 1mg experienced it is recommended that IUHEC 1 Give added recognition to its nuclear materials management responsibility by establishing at an appropriate high-level adequate staff to deal with materials management with full support from compernr management 2 Take hmnediate action to e Install a general ledger to summarize accounts periodi- celly end to suppozt data reparted in material balance reports to the ABC b Develop a subsidiary ledger to account physically'for 88 material by material balance area and by IUMEC Job order number c Create a chart cf accounts Job order numbers refer- enced to the project contract end nurchese order numners The account number itself should identity that the SS materiel associated with the account is either AEC-contract material or leased materiel d Reteblish a system of inventory identification by pre- numbering process containers These numbers could then be entered on internal transfer forms end posted to records maintained for the different material balance areas - e Establish an internal transfer system so that internal transfers to end from material balance areas end from one account Job order to another within the same material balance area are documented with transfer bras and recorded in the subsidiary ledger f Issue by material balance areas a report to NUMEC management of ending inventory and losses which shows and explains losses by Job order and the quantity and forms of material physically on hand by Job number omcw USE mm I - 3 Vm- V26- Identity and establish the magnitude of all significant loss nechanisns and technical bases thereof Translate such data to and 0-235 content and record and report on a current basis Istiblish inventory procedures and perform plant-wide inventories periodically3 but not less often than annually After comparison of these inventory quantities with the book quantities record the resulting gain or loss In establishing plant inventory procedures IUHEC should not ignore the need to obtain an adequate inven- tory of in-process material Establish all control procedures in a procedure manual and submit sane to the Oak Ridge field office for reviev and approval Process the excessively large quantity of accumulated 'residues combustibles filters ash etc and return the SNM recovered to the ABC In so doing care must be exer- cised to identify and to process residues in such a manner as to pennit comparison of recovered values with book values After such comparison the resulting gain or loss should be recorded Adjust the October 31 1965 book inventory to agree vitn the AsC s October 31 1965 physical inventory which establishes a 0-235 content of 521 197 grass A detailed tabulation of the physical inventory has been provided to mac Initiate a company-wide educational program stressing the high intrinsic and strategic value of special nuclear material and re-ezphasize the health and safety implica- tions of careful handling practices These recomendations are as shown to HUI-EEC on February 3 1966 Recommendations 2d 6 and 7 were revised somewhat as a result of that meeting USE i 1211 rm 57' a Eateriels are stolen angcn Apollo mug-Maia 15513 telephone SM 2441 February 5 1966 Nr 3 3188 2 George Division of Suclear cericls Management Unit'c States Atomic Energy Corr scion D C 20555 Dec George M- fike to express oar for your cOurtesy in coming to Ap' review with us the sc' of your findings and other pertin- ent - etived iron your surv the special nuclear materials 'inve 21' and accountability pr - a at NDEEC The contained in y e cport concerning accountability prcceisres are clcer y scund have already been implezented for the '35 part end fir corolet - have been established for all rcq rca action Inteed in the remedial action taken or is cver and above zcrcendations contained in the A brief servey of our ties in this regard follows Staff Li r ceuition of the need 't rcagnly professional and high-level staff 3 Ce uLth necteer rate ra 3enent activities NUXEC has Kr James Lorett 31 3 13 Division of Nuclear Materials nr Lavect is serc'n gs Ecnager of the Nuclear Materials Co In this a is receiving full management su-tcrt and wit be assisted b n staff in terms of both nu set as ocelity Althoogh u have had several discussions concerning the size an of the recc rsi s-a22 Mr Lovett has not yet decided as 3 his exact needs His which should be hill be icple-cnted n c In regard to the Nuclear Mcter- is process changes which will he following basic records n A prfrurv fer jc '12 a separate page for each reporting faciliz XJHEC ha- asterial s - - rizar transf u Control record system NUMEC has in - Ix 0 3r 5d s512 George Page 2 0 5 can- 136 Cocrniasion february S 1966 i C A contract ledger sunreriein all the nuclear materials 3 activities under a given ob number - D An internal control ledger detailing the physical movement of nuclear materials tween material balance areas and between jobs Fr7 2 A general ledger which serrarizes data in the other ledgers and journals are which will support data reported to the ABC and to NUMZ ccs oners Significant progress has been rad in developing all of the foregoing reco ds and in assuring their In many instances this has necessitated the reconstruction cf cores back to July 1 1965 the beginning date of the ABC fiscal e r Although this is a process important strides have ady been made The primary transfer journal aci ledger are complete and in balance The surnery transfer _tcr sl is now being reconstr-cted and will be cc lete before our next eteriai balance report is issued The control ledger has teen set cp It is corplete and in b 17ntz tr 1 l 1332 It tra snc'ions on sane contracts a t which reconstruction was either unnecessary or relatively sirple or lack of adequate physical data the inttr 1 control ledger has ya been brocght into belence with KC 2 otrer records 3 a pf Sestnined effort now - der way we xpec tcat the internal control ledger will be lOOl complete short- ly tits 3 ZC's next precise ph sical inventory which is scheduled for Ju-e 30 1553 - eneral ledger is now being reconstructed and we expect that it will be a and actiteole rec- c sy March 31 1966 's a draft chart of accounts referenced in ccdition to tne foregoing reccrc to project ccn-rcct or purches orcer numbers as appropriate has been cony of this craft net is nishec to yc during our Febru- cry 3 Tue rinal vers sr oE tiis chart will be included in the dreft proctd-res nencal discus -- below I JJH-L is alternati c cvetcns of container identification n ck manic -ss- c bc cr a scored meteriels It is our vrcit t Zd - - - - tr will ittetuus s2Mr Douglas George 6 5 Atoalc Energy Connission rage 3 February 5 1966 Rehorts to Manneen nt The Nuclear Haterials Control Department will issue not less than once each month sunttary reports to 323 anasement on the status of nuclear materials control These reports will reflect inventories and losses by materials balance area and explain insofar as possible losses ex- perienced in individual job orders The first such report will be issued as soon as the January 31 inventory data has been campleted and recanciled probably within the next 7-14 days We have alretey initiated the practice of regular etings with management to review and plan noelear materials cont oi activities Identi itnzion of Loss Mechanis s In addition to reporting acCtre losses it is vital that loss 7 order to prevent or redece ins a major portion of Mr Lovett's tine on the status of inventories and 21 515 be carefully identified in as possible further losses A during January was devoted to th oss echenisns with iden ificetion and invest etion i 1 special empahsis on prexontetive efforts will be a major continuing activity of tne Hetcrials Control 2_ior rsnt As each loss aecnanism is identitzed and a -e 3o is cev-lot- for eternining the Quantity of 'Zieniem Lei dot 11 rotorfz ycrfed on a cut- btsis The ns o loss -t-s fer inves igeted is that of liquid waste and th- Janeer rot-rial balance report will reflect known westc our -3 -he month Inventor' NUPZC will take rectine physitel inventories at the end of each month and physical inventories every six months Apparent losses as reflot ee by the routine inventories will be posted to the KCXEC nter 1 etor s end the apparent losses refleCted by the precise will be used in the p epsr tion of reports to the AEC and to e- toners - - preVio-sly node co ritrent to the Osk Ridge Office the a Sneletr 3322 1315 Control Brocedorc Manual would be submitted for no Letcr then Xercn l nil we still consider that the Notch 1 11- a realistic vzzeh can be cat the Suclear Kater- rent is the nrcsent time ettespting to ake a wide - utteriels control procedures - - a sic tukl 3 0ultian oocumrur nownmo uuo c u capo muonmz 9 nova to wouno a run on xuno up an banana-cw no ou baa no ll Our wwmuo coup a nun 0 hr spoon arunmou up no paoonuonuuo n so unamn vacuoucnn mvanou Ill nouannuw nun you awn cocpa v upwannpopUuww can on an unmoua n run woos uvvno au Mum rum H5 n70 cow om numu ammonnp a uvnnwu acupnuu on do nnwuocmu ouww sway nan an unannmnunuwsm 0n pup navpowoou zuwmn you nonwouwuuwnu cannon any vwownpn a uvoo pu snuw Um on nun no unnunowpn b co 0m v 0wnu aruwmmn uwumuwuwm on nun cuuwmwoa cw nuomn ocnuuao o 090 wonncun nuuwum can wuwnruax aumnwam H50 annun unannoa wuw vnomurb a w co Inna on wouucqu q powm hr rwnwormy nu Wmummcm nwon n1 mouomovuu pluno oununu envy unnoaanoa anxnn u xmumn n mwmwu an uwauu no are puma man an Ha wuw momma so noLHa 0m nocnmo Will rn mcunwuu unnuwnuunwuwoum wot vnu n vw no Umxw uncounnw m m u muhpn n vnumnnuuw u q n u nann Manna Jim duowwow on unn u auu wc awn on cunuu uh wu uuwon pm to opmu-mmnu ohm 4 muwnm nun pm unnomnwuma u 0 ura unwnm 40 runwnnu- hunr run mmumnn no Wu aswuw Om acuwnnuuwmu owparwm envy xu n wmon omwmwaa Hymmo canaNnuwunwoa cwuu om ca Homop mn mm n- no umuwnw no wuuonomu nwmun mom nu--u a sway nun unu m 0m OLH vuo Pupounw mwaun wow ununuhnu-u 0m mogunuon nu vwmm rnnmu wuuowuma Gamma mouzmcwumub on an auupuw ocu ammnwum wanna can an no wuunuucwvorm noucuw 0m nouwmaum aa nnu oapw Va name wm am an urnomu Um cwwn pa 0 map unu4uum 0m uww umnuuwmwm up ncomnwou pnnoum nmpw pm to run up ouhnn Mu uun nwmurmmuu wn cocum ca unmmaumdwm no gnaw u uw unurmnwonn cm otn uuw can uno nn a not owwuawnm o-u unux wn nnuonq no nonponn can Au-v nu- Low vamuwnuw ou-w wnuno 9 Joan nwunmuunuunuu nu mrq unu no can a pa huhunn run on anon an ono ou ou no n umrnqu auruu uu Jnuu cw zocaauan wu Jun OJ a ow Annanw w u cwur 00 non numnun anon um noun n uu vuua m a uw an cwuu rtvt CLI a Er Deuglaa 2 George Page 5 0 5 Atcaic Energy Commission february S 1966 Ieverthelesa we would be uilline as an interim measure and in accordance with your recommendation to adjust our book inventory to accord with the results of the ASC's October 31 1965 inventory check taken in the course of your safeguards investigation at NUNEC As the abovt nentionzd uncer inties are resolved we would adjust our book inventory to accord with the data sc obtained In these rcumstances an interim book inventory adjustment to accord with the results of your inventory check would be reIleCted on February 28 1966 materials bslence report We btlitve thtt in any event the ultimate result is identical and accordingly we shall abide by your advice and recowmendetion in this 3rd I would 1 4 to express sincere appreciation for your 3 in reviewing these Mett-rs with us Very truly yoursLalman M Shapiro President