OCR Text |
Show AEC Signs Enrichment Contract The Atomic Energy Commission Com-mission today signed with Oklahoma City, Oklahoma, the first domestic uranium toll enrichment contract for production of fuel for a nuclear nu-clear power plant. Toll enrichment en-richment is an arrangement whereby privately owned uranium is enriched in the istope U-235 in AEC facilities facili-ties upon payment of a service serv-ice charge by a customer The contract, providing enrichment service for a 5-year 5-year period, is the second of many such contracts the AEC expects t o conclucte with fuel companies and p-lectrical p-lectrical utilities in the United States and abroad. The Commission's first toll enrichment contract for power reactor fuel was signed sign-ed June 22, 1967, with a Swedish company, providing provid-ing enrichment services for up to 30 years duration. S. R. Sapirie, Manager of AEC's Oak Ridge Operation, signed the contract for the AEC, and R. M. Fryar. Vice President of Kerr-Mc-Geo, signed for his company.' The contract calls for the AEC to enrich uranium delivered de-livered to the Commission by Korr-McGee and Combustion Combus-tion Engineering will use the enriched uranium in the fabrication fab-rication of fuel for Omaha Public Power District's Fort Calhoun, Nebraska, nuclear plant station Unit 1. The pressurized water reactor is scheduled to start up in 1971 producing some 450,000 kilowatts kilo-watts of electric power. Deliveries of the enriched material will be made during dur-ing the period June 1, 1909, through December 1, 1973, and will involve an estimated estimat-ed 114 tons of enriched uranium uran-ium Enrichment of the material ma-terial will range from about 1.6 percent to 3.05 percent in uranium-235. Based of charges for enrichment en-richment services established in September 19G7 of $26 per unit of separative work, the cost for the toll enrichment service is estimated at $9, 400,000. Toll enrichment of uranium uran-ium enables industry and utilities to undertake the responsibility re-sponsibility for a greater portion of the uranium fuol cycle by provinding the u-ranium u-ranium feed component of' the product. Private ownership of special spec-ial nuclear materials, including in-cluding uranium enriched in 235, was authorized on August Aug-ust 20, 19G4, following passage pas-sage of the "Private Ownership Owner-ship of Special Nuclear Materials Ma-terials Act of 19G4. The act also provides for toll enrichment en-richment beginning January 1, 1909; termination by the AEC of distribution of special spec-ial nuclear materials for power reactor fuel by lease after December 31, 1970; and mandatory ownership of special nuclear materials used for power reactor fuels by july 1, 1973. Under the new contract with Kerr-McGee and subsequent sub-sequent toll enrichment contracts, con-tracts, the enrichmena service ser-vice will be -orformed a! the AEC's gascu-j diffision plants in Oak R:dge, Tennessee; Ten-nessee; Portsmouth, Ohio; and Paducah, Kentucky. |