MEETING BETWEEN U.S. NRC CHAIRMAN DALE KLEIN AND

UNCLAS SECTION 01 OF 02 OTTAWA 001242 SENSITIVE SIPDIS STATE FOR INS/NESS, WHA/CAN AND EEB DOE FOR NE AND NNSA E.O. 12958: N/A TAGS: KNNP ENRG TRGY SENV CA SUBJECT: MEETING BETWEEN U.S. NRC CHAIRMAN DALE KLEIN AND CNSC PRESIDENT MICHAEL BINDER Sensitive but Unclassified. Protect accordingly; not for Internet distribution. ¶1. (U) Summary: U.S. Nuclear Regulatory Commission (NRC) Chairman Dale E. Klein traveled to Ottawa from July 17-19, ¶2008. On July 18 Klein discussed reactor licensing and medical isotope production issues recently appointed Canadian Nuclear Safety Commission (CNSC) President Michael Binder; and met with Embassy Ottawa DCM Terry Breese. On July 19 the Chairman spoke about the role of the NRC and independent regulators to participants at the World Nuclear University Summer Institute in Ottawa. End Summary. ¶2. (U) On July 18, 2008, NRC Chairman Klein, Paul Dickman (Chief of Staff/Executive Assistant, Office of the Chairman); Gary Holahan (Deputy Director, Office of New Reactors); Geraldine Fehst (Office of International Programs); and ESTH Counselor discussed prospects for new nuclear reactor construction in Canada and the United States with CNSC President Michael Binder. Attending with Binder were CNSC officials Barclay Howden (Director General for Regulatory Improvements and Major Projects Management); Gerry Frappier (Director General, Directorate of Assessment and Analysis); Patricia McDowell (Vice President, Regulatory Affairs Branch); Dale Austin (Director, Policy Coordination Division, Strategic Planning Directorate); Colin Moses (Executive Advisor, President's Office); and Nicolas Lesieur (International Relations Officer, Strategic Planning Directorate). New Reactor Designs ) Sharing Experience -------------- ¶3. (SBU) Dr. Klein offered to share NRC work and experience on certifying new reactor designs with the CNSC, along with the strong proviso that the CNSC, as an independent regulatory body, should also perform independent design reviews to ensure that all regulatory requirements in Canada have been satisfied as well. Negotiations have begun with regard to a draft Annex, prepared by the CNSC, to memorialize the NRC offer to share NRC design reviews. The Annex will be added to the "Administrative Arrangement between the NRC and the CNSC for Cooperation and the Exchange of Information in Nuclear Regulatory Matters Arrangement." Target date and venue for signing is September 2008 at the upcoming International Atomic Energy Agency General Conference in Vienna. Also discussed was the need for regulatory bodies to share any information about fraudulent nuclear components manufactured and sold around the world. The NRU and Medical Isotopes -------------- ¶4. (SBU) Chairman Klein and President Binder discussed the events leading up to the shutdown of the National Research Universal Reactor (NRU) in Chalk River, Ontario, for several weeks in late 2007 and the Atomic Energy of Canada Limited (AECL) decision to discontinue development of the proposed Multipurpose Applied Physics Lattice Experiment (MAPLE 1 and 2) reactors, which were to take over medical isotope production from the NRU. The NRU is a 51-year-old facility that now produces more than 50 percent of the world supply of these isotopes. The NRU's shutdown for four weeks (November 19-December 16, 2007) demonstrated there is little redundancy in the global supply chain for isotopes. President Binder stated that AECL currently plans to file application to Qstated that AECL currently plans to file application to extend NRU's license beyond its present October 2011 expiration date. ¶5. (SBU) President Binder also inquired as to what, if any, Mo-99 production alternatives were under consideration in the United States, asking how long these alternatives might take to be licensed and in production. Chairman Klein identified two possible options under review in the U.S. to serve as alternative suppliers: the University of Missouri Research Reactor Center and the Babcock & Wilcox Technical Services Group, both of which are more than five years away from possible licensing by the NRC and ultimate operation. Chairman Klein promised to provide an updated status and timeline for these proposals after his return to Washington. President Binder agreed with Chairman Klein's proposal for collaboration between the NRC and the CNSC to review all possible alternatives available to ensure a continuing, uninterrupted supply of medical isotopes for current and OTTAWA 00001242 002 OF 002 future needs. ¶6. (SBU) Chairman Klein and President Binder also discussed recent management and organizational changes at the CNSC in a private meeting. ¶7. (U) Chairman Klein reviewed this message. Visit Canada,s Economy and Environment Forum at http://www.intelink.gov/communities/state/can ada WILKINS