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Cablegate: Meeting Between U.S. Nrc Chairman Dale Klein And

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ZNR UUUUU ZZH
R 182142Z SEP 08
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC 8517
RUEANFA/NRC WASHDC
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAHLC/DEPT OF HOMELAND SECURITY WASHDC
RUEAEPA/EPA WASHDC
RHEHNSC/WHITE HOUSE NSC WASHINGTON DC
RUEHUNV/USMISSION UNVIE VIENNA 0045

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

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