PHILLIP BURTON, CALIF.
ROBERT W. KASTENMEIER, WIB.
IPATET T. MINK, HAWAJI
LLOYD MERDS, WASH.
ABRAHAM KAZEN, JR... TEL
ROBERT G. STEPHENS, JR., GA.
JOSEPH P. VIBORITO, PA.
JOHN MELCHER, MONT.
TEND RONCALIO, WYD.
JONATHAN B. BINGHAM, M.Y.
JOHN F. BEJDERLING, OMID
MAFOLD RUNNELS, N. MEX.
ANTONIO BORJA WON PAT, GUAM
RON DE LUGO, V.J.

BOS ECKHARDT, TEL

GOODLOR & BYRON, MD.

JAIME BENITEZ, P.B

JIM SANTINI, NËV.

PAIR & TSONGAS, MASS.

ALLAN T. HOWE, UTAN

JAMES WEAVER, OPER

BOB CARR, MICH.

GLORGE MILLER, CALIF.

THEODORE M. (TED) RIS DONDOVER,

JOE SKUBITZ, KANS.
BAM STEIGER, AREZ
DON H. CLAUSEL CALIF.
PHILIP & RUPPE, MICH.
MANUEL LUJAN, JA... H. MEL.
KEITH G. SEDELIUS, FLANG.
ALAN STEELMAN, TEX
DON YOUNG, ALASKA
ROBERT E. BAUMAN, MO,
STEVEN D. SYMMS, IDAND
JAMED P. UJIM) JOHNSON, COLD.
ROBERT J. LAGONARBIND, CALIF.
VIRGINIA SMITH, NEBR.
SHIRLEY M. PETTIS, CALIF.

Mr. William Anders

Chairman, Nuclear Regulatory Commission

1717 M Street, N.W.

Washington, D.C.

Dear Chairman Anders:

The January 8, 1976 Washington Star reports a substantial discrepancy in accounting for "bomb-grade" uranium at the Nuclear Fuel Services Facility in Erwin, Tennessee. This incident raises several questions relevant to the concerns of the Subcommittee on Energy and the Environment.

I would appreciate your providing an explanation of what went wrong. What assurance is there, in the presence of this apparently unreliable accounting system, that materials have not been illicitly removed from the plant? Does this incident carry any implication regarding the overall usefullness of material control and accounting systems? What accuracy can be expected from material control and accounting systems in large reprocessing and fabrication plants which would be associated with large scale plutonium recycle?

I look forward to receiving your reply.

With best regards,

enclosure

Sincerely,

Morris K. Udall

Chairman, Subcommittee on
Energy and the Environment

NITED S

COMMISSION

OFFICE OF THE

CHAIRMAN

WASHINGTON, D. C. 20555

MAR 19 1976

Honorable Morris K. Udall

Chairman, Subcommittee on Energy

and the Environment

Committee on Interior and Insular Affairs
U. S. House of Representatives

Dear Chrom Udall:

I apologize for the delay in responding to your January 9, 1976, inquiry regarding the uranium inventory discrepancy at the Nuclear Fuel Services plant (NFS) in Erwin, Tennessee. However, the Nuclear Regulatory Commission staff was engaged in an urgent review of the NFS situation and I felt the Commission could better respond to your concerns after the review. The enclosures contain a summary of events at the NFS plant and staff comments to your specific questions.

I hope this information is fully responsive to your needs.

2d Session