RESPONSE TO ONTARIO POWER GENERATION REGARDING A

UNCLAS STATE 082558 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 000173 ¶B. STATE 078415 ¶C. TORONTO 000163 ¶D. STATE 075002 ¶E. OTTAWA 000522 ¶F. STATE 69767 ¶1. (U) This is an action request for Consulate General Toronto. Please see paragraph 3. ¶2. (SBU) BACKGROUND: Per REF B and in response to REF A and C, Washington has agreed to draft a Request for Proposal to Ontario Power Generation (OPG) regarding estimated costs associated with the transfer of Canadian stores of Helium-3 to the United States. Per REF C, the Request for Proposal allows OPG to initiate a dialogue to develop a mutually acceptable agreement for transfer of Helium-3. Rather than issue a formal Request for Proposal at this time, a Request for Information has been generated (see paragraph 4) in order to engage OPG in a dialogue and obtain certain information for the effort to proceed. Once some of this information has been provided, it will be possible to hold an initial face-to-face meeting with "people who can talk business and decisions makers" that will lay the groundwork for technical discussions between technical experts. ¶3. (SBU) ACTION REQUEST: Washington requests that ConGen Toronto provide the Request for Information in paragraph 4 to appropriate OPG officials for their review by Monday, August 10, 2009. ¶4. (SBU) REQUEST FOR INFORMATION TO OPG REGARDING ESTIMATED COSTS ASSOCIATED WITH THE TRANSFER OF CANADIAN STORES OF HE-3 TO THE U.S. The United States Department of Energy (DOE) provides the following elements for consideration and requests information and estimated costs pertaining to delivery of He-3 to the DOE Savannah River Site: --A. OPG would package their solid storage units of helium mixture for transport to the Savannah River Site. This will involve packaging that is compliant with Canadian and U.S. transportation requirements. --B. OPG will allow DOE observers on-site during the packaging and loading. --C. OPG will advise what, if any, monitoring and reporting requirements for the extraction of gases are needed for their records or to meet Canadian Government requirements. --D. DOE will accept responsibility for the ultimate disposition of the storage material, thereby relieving OPG of any return transportation and final disposition costs. --E. Any suggested thoughts on a formula for the costs of extracted materials. --F. DOE will provide storage units for future gas loading. Would these storage units need to be certified in Canada, or is US certification applicable? On a periodic basis, these units would be packaged and shipped to the US as described in item 1. --G. A schedule and negotiation framework for future shipments of solid storage units from future OPG operations will be proposed. --H. The United States anticipates a current and ongoing need of He-3 along with future He-3 OPG production. --I. The United States would like to begin receiving He-3 on or before October 1, 2010, and would like to have all available quantities transferred by October 1, 2011. ¶5. (SBU) REPORTING DEADLINE: Washington requests that ConGen Toronto respond via front-channel cable no later than August 17, 2009. ¶6. (SBU) Washington appreciates Post's assistance. Contact Michael Curry (currymr@state.gov, 202-736-7692) in ISN/WMDT for additional information. CLINTON