RESPONSE TO ONTARIO POWER GENERATION REGARDING A

UNCLAS STATE 078415 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KNNP MNUC ASEC KCRM PARM PINR PREL CA XS SUBJECT: RESPONSE TO ONTARIO POWER GENERATION REGARDING A USG REQUEST FOR PROPOSAL FOR HELIUM-3 EXTRACTION REF: A. TORONTO 000163 ¶B. STATE 075002 ¶C. OTTAWA 000522 ¶D. STATE 69767 ¶1. (U) This is an action request for Consulate General Toronto and Embassy Ottawa. Please see paragraph 3. ¶2. (SBU) BACKGROUND: Per REF A, Ontario Power Generation (OPG) is "highly supportive" of the United States' proposal to extract helium-3 (He-3) from OPG facilities and has offered several suggestions and preferences. OPG stated it would like to transfer its inventory of tritium directly to the United States Government (USG) without being involved in any subsequent processes to utilize the tritium or its byproducts. OPG specifically requested the USG issue a Request for Proposal which would allow OPG to initiate a dialogue with the goal of a mutually-acceptable agreement and transfer of material. Additionally, OPG preferred an initial meeting consist of "people who can talk business and decision-makers," prior to technical discussions between technical experts. Mario Cornacchia, OPG's Director of Commercial Services, offered an informal tour of OPG's facility in Darlington and promised to consider including technical experts in any initial discussions. ¶3. (SBU) ACTION REQUEST: ConGen Toronto is requested to inform OPG that Washington is encouraged by their response and intends to draft a Request for Proposal to be delivered in the August 10 timeframe. Additionally, Washington requests that ConGen Toronto seek answers to the questions in paragraph 4 in order to facilitate a means to extract He-3 from OPG stocks of tritium. Washington requests that Embassy Ottawa inform appropriate Canadian authorities that OPG has expressed an interest in transferring its inventory of tritium to the United States Government, in contrast to the contemplated extraction of He-3 discussed in REF C. ¶4. (SBU) FOLLOW UP QUESTIONS: --The tentative delegation listed in REF B would like to visit OPG's Darlington facility between September 9-17, 2009. Washington appreciates the offer of an informal tour and OPG's flexibility on the inclusion of at least one technical expert on this initial visit. --In order to generate a proper Request for Proposal, Washington asks that OPG provide information regarding any monitoring requirements that are associated with the cylinders described in REF A, and Canadian transport and packaging requirements for shipping these cylinders through Canadian territory. ¶5. (SBU) REPORTING DEADLINE: Washington requests that ConGen Toronto respond via front-channel cable no later than August 3, 2009. ¶6. (SBU) Washington appreciates Posts' assistance. Contact Michael Curry (currymr@state.gov),202-736-7692 in ISN/WMDT for additional information. CLINTON