AEC CONTRACTUAL ARRANGEMENTS FOR HANDLING SPECIAL NUCLEAR MATERIAL

Some years ago, there was a best seller, and later a movie, entitled \"Anatomy of a Murder\". I would like to borrow the first portion of that title and discuss with you the anatomy of AEC contractual arrangements for handling special nuclear material, or the steps we have taken to develop a workable and uniform policy in this area, particularly where mixed facilities are involved. While I don't expect this paper to be a best seller, I hope it will suggest the possible solutions to some rather difficult problems. As you know, special nuclear material which a contractor uses in his commercial business is furnished to him under a standard form of lease agreement under Section 53 of the Atomic Energy Act and is known as Section 53 material. On the other hand, special nuclear material which the Government furnishes to a contractor under a specific prime or subcontract as Government-furnished material is generally known as non-Section 53 material. Where you have both kinds of material in a contractor's plant, it is known as a mixed facility. Under such circumstances, the contractor was required to live with two separate sets of rules with respect to (1) health and safety, (2) physical security, (3) financial responsibility, (4) nuclear material control, (5) recovery of scrap, (6) return of material, and (7) use charges. This has created a number of serious problems.