INDEX


                                 CHAPTER II

                          MATERIALS ACCOUNTABILITY

1.  GENERAL.  This chapter describes the requirements for nuclear materials
    accountability and shall be applied in a manner consistent with the
    graded safeguards concept.  The chapter is subdivided into five
    functional areas:  accounting systems, inventories, measurements and
    measurement control, material transfers, and material control
    indicators.

2.  ACCOUNTING SYSTEMS.  Each facility shall have a system that provides for
    tracking nuclear material inventories, documenting nuclear material
    transactions, issuing periodic reports, and assisting with the detection
    of unauthorized system access, data falsification, and material gains or
    losses.  The accounting system shall provide a complete audit trail on
    all nuclear material from receipt through disposition.  The Generally
    Accepted Accounting Principles, as promulgated by Financial Accounting
    Standards Board, shall be used in the design and operations of the
    nuclear material accounting system unless otherwise directed by DOE
    directives.

    a.   Accounting System Data Base and Procedures.  For each facility,
         procedures shall be maintained describing the structure and
         operation of the nuclear materials accounting system.  The
         procedures shall accurately reflect current nuclear material
         accounting practices.  Specific requirements for accounting
         procedures include the following:

         (1)  A description of the inventory data base, including procedures
              for updating the inventory data and reconciling the inventory
              data with the results of physical inventories, and a
              description of the required data elements for each applicable
              material type.

         (2)  Identification of the accounting reports and their frequency,
              distribution and timeliness, consistent with accounting
              requirements.

         (3)  Identification of the organizational responsibilities for the
              management and operation of the accounting system.

         (4)  Recording, reporting, and submission of data to the national
              database, Nuclear Materials Management and Safeguards System,
              by material type and reporting unit, as specified on page
              II-19, paragraph 7.

    b.   Account Structure.

         (1)  A facility shall consist of one or more Materials Balance
              Areas established to identify the location and quantity of
              nuclear materials in the facility.  For each facility, readily
              retrievable accountability data shall be maintained by
              Materials Balance Area that reflects quantities of nuclear
              materials on inventory, quantities of nuclear material
              received and shipped, and other adjustments to inventory.

         (2)  The Materials Balance Area account structure shall provide the
              capability to localize inventory differences and provide a
              system of checks and balances for verifying the accuracy of
              the accountability data and records.

         (3)  One individual in each Materials Balance Area shall be
              designated by management to be responsible for ensuring that
              materials control and accountability policies are implemented
              in that Materials Balance Area.

         (4)  Material types, processes, and functions shall be considered
              in establishment of Materials Balance Areas.  The number of
              Materials Balance Areas shall be sufficient to identify and
              localize inventory differences and their causes.

         (5)  A Materials Balance Area boundary shall not cross a Materials
              Access Area boundary.  Each Materials Balance Area should
              conform to the single geographical area concept and be an
              integral operation.  If more than one geographical area is
              included in one Materials Balance Area, all of these areas
              must be under the administrative control of the same
              individual, and the activities in these areas must be
              associated with an integral operation.

    c.   Records and Reports.

         (1)  For each facility, management shall maintain records, submit
              data, and issue reports as required by page II-19, paragraph 7
              and facility procedures.  These reports shall accurately
              describe all nuclear material transactions and inventories.
              Inventory adjustments shall be identified by Materials Balance
              Area and shall be reported consistent with requirements of
              this Order, page II-19, paragraph 7.

         (2)  Nuclear materials records shall be updated only by authorized
              personnel, and the records system shall provide an audit trail
              for all transactions affecting the nuclear materials database.

         (3)  The Materials Balance Area records system shall be capable of
              being updated daily or upon demand for all nuclear materials
              transactions.  (This requirement is for the updating of
              records based on reports or information; it is not a
              requirement on how quickly a facility must be able to complete
              measurements.)  In addition, the records system shall be
              capable of generating book inventory listings for all special
              nuclear material within 3 hours.  For all other nuclear
              material, the timing for generation of book inventories shall
              be within 24 hours.  Validating the accuracy of the accounting
              record system shall be conducted according to testing
              methodology, testing frequency, and record maintenance
              requirements contained in DOE 5630.16A and applicable
              Department guidance.  Performance requirements for accounting
              record system accuracy are contained on page I-10, paragraph
              4.

3.  PHYSICAL INVENTORIES.  Each facility's management shall implement a
    physical inventory program for nuclear materials consistent with the
    requirements defined below.

    a.   Periodic Physical Inventories.

         (1)  Physical Inventories.  Inventories shall be based on measured
              values and, where feasible, measurements or technically
              justifiable estimates of holdup shall be made so that holdup
              quantities can be used in determining inventory values or
              explaining the inventory difference.  Process monitoring
              techniques may be used for material which is undergoing
              processing and recovery operation but inaccessible for
              measurements by sampling.  Process monitoring, in addition to
              material control procedures and specific action criteria,
              subject to the approval of the Manager, Operations Office,
              should be used routinely to track materials in process until
              operations permit an accountability measurement.

         (2)  Conduct of Inventories.  For each facility, there shall be
              documented plans and procedures defining responsibilities for
              performing inventories and specifying criteria for conducting,
              verifying, and reconciling inventories of nuclear material.
              Verification of the presence of items during inventories may
              be performed on a statistical sampling basis.  Sampling plans
              shall be consistent with the graded safeguards concept.
              Parameters for statistical sampling plans and inventory
              stratifications used with statistical sampling plans shall be
              defined by the facility management and approved by the
              Manager, Operations Office.

         (3)  Holdup Inventory.  Holdup inventory shall be measured, where
              feasible, or estimated on the basis of throughput, process
              data, modeling, engineering estimates, or other technically
              justifiable factors as a regular part of inventory for
              facilities with Category I, II, and III quantities of special
              nuclear material and for facilities with Category IV
              quantities of special nuclear material that have more than 5
              kilograms of special nuclear material as holdup on a regular
              basis.  The method, justification, and supporting
              documentation should be included in the Materials Control and
              Accountability Plan.

         (4)  Physical Inventory Frequencies.  For each facility, physical
              inventories shall be performed for Category I and II Materials
              Balance Areas involving activities other than processing at a
              frequency determined by the Manager, Operations Office, but at
              least semiannually.  For Category I and II Materials Balance
              Areas where processing occurs, physical inventories shall be
              performed at a frequency determined by the Manager, Operations
              Office, but at least bimonthly.  Factors to be taken into
              consideration for frequency determination include personnel
              radiation exposure, the operational mode of the facility, and
              credible protracted diversion scenarios.

              Category IV source and/or other nuclear material in Category I
              and II Materials Balance Areas shall be inventoried on a
              schedule defined by the Manager, Operations Office, but at
              least annually, except when the source and/or other nuclear
              material is a credible substitution material.  In situations
              where substitution materials are collocated with special
              nuclear material, facilities shall inventory substitution
              materials with the same frequency as the special nuclear
              material and implement the use of inventory measurement
              methods that can distinguish between special nuclear material
              and source and other nuclear material.

              In addition to the above requirements, inventory checks for
              Category IA items not in storage shall be performed weekly for
              physical count verification, and monthly for serial number
              verification.  Inventory checks for stored Category IA items
              shall consist of a physical count whenever the storage area is
              accessed and a serial number verification on a monthly basis.

              For each facility, physical inventories shall be performed for
              Category III and IV Materials Balance Areas at a frequency to
              be determined by the Manager, Operations Office, but at least
              biennially.

              For facilities having multiple Materials Balance Areas with
              varied inventory frequencies, a simultaneous inventory of the
              complete facility shall be performed at least once biennially.

         (5)  Deviations to Inventory Frequencies.  Deviations to inventory
              frequency requirements described in subparagraph (4) above may
              be approved in accordance with DOE 5630.11B, for situations
              where alternative control mechanisms provide assurance that
              unreported changes in inventories would be detected.
              Inventory values shall be determined in time to provide for
              computation and reconciliation of inventories and
              determination of inventory differences, consistent with DOE
              reporting requirements stated on page II-19, paragraph 7, and
              approved inventory frequencies.  See "Guide for Implementation
              of DOE 5633.3A."

         (6)  Physical Inventory Reconciliation Program.  For each facility,
              management shall implement a physical inventory reconciliation
              program designed to provide assurance that all nuclear
              material has been accounted for and that the facility's record
              system reflects the physical inventory.  Upon completion of
              the physical inventory, the book inventory for each Materials
              Balance Area shall be compared with and, if necessary,
              adjusted to the physical inventory.

    b.   Special Inventories.  At each facility, management shall establish
         and implement procedures for conducting special inventories as a
         result of routine disassembly of critical assemblies, changes in
         custodial responsibilities, missing items, inventory differences
         exceeding established control limits, abnormal occurrences, or at
         the request of authorized facility personnel or the cognizant
         Operations Office.

    c.   International Atomic Energy Agency Inventories.  Physical
         inventories performed during International Atomic Energy Agency
         inspections may, with the concurrence of the Manager, Operations
         Office, serve in place of a scheduled physical inventory.

    d.   Inventory Verification/Confirmation Measurements.

         (1)  At each facility, management shall establish and implement a
              system for performing measurements as part of a physical
              inventory.  Verification measurements shall be made on special
              nuclear material items that are not tamper-indicating.
              Confirmation measurements shall be made on items that are
              tamper-indicating.  Such measurements are intended to detect
              diversion or theft of material and shall use a
              statistically-based sampling plan applied in a manner
              consistent with the graded safeguards concept.  Separate
              sampling plans shall be implemented for verification and
              confirmation measurements to assure that a sufficient number
              of non-tamper-indicating items are measured.  Parameters for
              statistical sampling plans and inventory stratifications used
              with statistical sampling plans shall be defined by facility
              management and approved by the Manager, Operations Office.
              The Manager, Operations Office, may establish a material
              quantity threshold for requiring inventory verification/
              confirmation measurements.  It is recognized that certain
              materials are not amenable to verification measurements.  Such
              materials shall be documented in the Materials Control and
              Accountability Plan and, for these materials, confirmatory
              measurements of two material attributes may be substituted for
              the verification measurement.  Materials not amenable to
              measurement shall be identified as on page II-6, paragraph 4.

         (2)  Documented acceptance/rejection criteria for inventory
              confirmation/verification measurements shall be established
              based on valid technical and, where technically feasible, on
              valid statistical principles.  For Category I and II items,
              acceptance/rejection criteria shall be consistent with
              performance requirements for confirmation/verification
              measurements stated in Figure I-4, page I-12.  A response plan
              shall be prepared and implemented for evaluating and resolving
              all verification/confirmation measurements that fail
              acceptance criteria.  Items that fail the confirmation/
              verification measurement criteria shall not be processed prior
              to resolution of the discrepancy.  Performance requirements
              for inventory confirmation/verification measurements are
              contained on page I-10, paragraph 4.

4.  MEASUREMENTS AND MEASUREMENT CONTROL.  At all facilities possessing
    nuclear material, measurement and measurement control programs shall be
    implemented.  The object of measurement and measurement control is to
    establish nuclear material values and to assure the quality of the data.
    Measurements programs used to determine Category I or II inventories of
    special nuclear material or used to determine a Category I or II special
    nuclear material throughput over a 6 month period shall address the
    topics identified in this paragraph and shall be consistent with
    facility-specific measurement program objectives.  For other measurement
    and measurement control programs (those used only to determine Category
    III or IV inventories), the scope and content of the programs shall be
    approved by the Manager, Operations Office.  For Category I and II
    facilities, these programs shall address the topics identified in this
    paragraph and shall be consistent with facility-specific measurement
    program objectives.

    Materials not amenable to measurement by the site shall be identified in
    the facility's Materials Control and Accountability Plan.  Inventory
    values for these materials shall be based on measured values made at
    other sites or technically justified estimates.  Justification and
    supporting documentation for these inventory values shall be included as
    part of the Materials Control and Accountability Plan.

    Additional guidance on measurement control is provided in the DOE
    "Measurement Control Guide," (3-93).

    a.   Organization.  The measurement and measurement control program
         shall be organized to facilitate efficiency of operation and
         quality of performance and be independent from operations.

    b.   Selection and Qualification of Measurement Methods.  The objective
         is to ensure that measurement methods selected for use are capable
         of measuring the material in question to the desired levels of
         precision and accuracy, as approved by the Manager, Operations
         Office, and consistent with a graded safeguards approach.  To this
         end, each facility's management shall select, qualify, and validate
         measurement methods capable of providing the desired levels of
         precision and accuracy.  Selection and qualification of a
         measurement method shall be the responsibility of the facility
         management.  Target values for the accuracy and precision of
         nuclear material measurements recommended and endorsed by
         recognized national and international nuclear organizations may be
         used by contractors and Operations Offices as guidance for
         desirable levels of accuracy and precision.  The Manager,
         Operations Office, shall review the documentation of this process
         and shall approve the precision and accuracy goals.  Each facility
         shall have procedures to ensure that only qualified measurement
         methods are used for accountability purposes.

    c.   Training and Qualification of Measurement Personnel.  The objective
         is to assure that the individuals responsible for performing
         measurements have sufficient knowledge to perform the measurements
         in an acceptable manner.

         (1)  Training.  Each facility shall have a documented plan for the
              training of measurement personnel.  The plan shall be reviewed
              annually and updated as necessary to reflect changes in
              measurement technology and shall specify training,
              qualification, and requalification requirements for each
              measurement method.

         (2)  Qualification.  Each facility shall have a documented
              qualification program that ensures that measurement personnel
              demonstrate acceptable levels of proficiency before performing
              measurements, and that measurement personnel are requalified
              according to requirements in the training plan.  For
              destructive analysis of nuclear material, this proficiency
              shall be demonstrated, at a minimum, once per day for each
              method that the individual will use that day.

    d.   Measurement Systems.  The objective of the measurement system is to
         provide nuclear material values for inventories and transactions.

         (1)  Sampling.  The objective of the sampling program is to ensure
              that the small portion of bulk material taken for measurement
              is representative of the bulk material.  Each facility shall
              have documented sampling plans for each measurement point used
              for accountability purposes.  The plans shall be based on
              valid technical and statistical principles and shall take into
              account material type, measurement requirements, and any
              special process or operational considerations.

              (a)  The basis of the sampling plan shall be documented and
                   validated through studies of the materials or items being
                   sampled.

              (b)  The sampling plan shall specify at a minimum the sampling
                   procedure, number of samples required, size of samples,
                   mixing time and procedure (when applicable), provisions
                   for retaining archive samples, and estimates of variance
                   associated with the sampling method.

              (c)  Sampling procedures shall be documented and reviewed
                   annually or whenever changes are made to the sampling
                   process or in material type or composition of the
                   material being sampled.

         (2)  Measurement Methods.  For each facility, measurement methods
              shall be developed, documented, and maintained for all nuclear
              material on inventory except for those materials not amenable
              to measurement.  These methods shall be written to provide
              clear direction to the analyst or operator, and shall be
              validated initially and revalidated whenever changes are made.

              (a)  In determining inventory values and consistent with the
                   graded safeguards concept, the selection of the
                   measurement methods shall assure that the contribution of
                   the measurement error to the uncertainty of the inventory
                   difference is minimized.

              (b)  Verification measurements, when used to adjust
                   accountability records, shall have accuracy and precision
                   comparable to, or better than, the original measurement
                   method.

              (c)  For confirmatory measurements, the measurement method
                   used shall be capable of determining the presence or
                   absence of a specific attribute of the material,
                   consistent with valid acceptance/rejection criteria.

              (d)  All measurement methods shall be calibrated using
                   Standard Reference Materials, Certified Reference
                   Materials, or secondary standards traceable to the
                   national measurement base, and revalidated as necessary.

              (e)  Equipment and instrumentation used in performing
                   measurements shall meet precision and accuracy
                   requirements under in-plant conditions.

              (f)  Documentation of measurement data shall be maintained to
                   provide an audit trail from source data to accounting
                   records.

    e.   Measurement Control.  The objective of measurement control is to
         assure the effectiveness of measurement systems and the quality of
         measured values used for accountability purposes and to obtain
         precision and accuracy values for use in the determination of
         inventory difference control limits and shipper/receiver limits of
         error.

         (1)  Measurement Control Programs.  For each facility, measurement
              control programs shall be developed and implemented for all
              measurement systems used for accountability purposes.  A
              measurement control program, as referred to herein, shall
              include at a minimum the following elements:

              (a)  Scales and Balances Program.  All scales and balances
                   used for accountability purposes shall be maintained in
                   good working condition, recalibrated according to an
                   established schedule, and checked for accuracy and
                   linearity on each day that the scale or balance is used
                   for accountability purposes.

              (b)  Analytical Quality Control.  Data from routine
                   measurements shall be analyzed statistically to determine
                   and ensure accuracy and precision of the measurements.

              (c)  Sampling Variability.  The uncertainty associated with
                   each sampling method, or combination of sampling and
                   measurement method, shall be determined and maintained on
                   a current basis.

              (d)  Physical Measurement Control.  The precision and
                   accuracies of volume, temperature, pressure, and density
                   measurements shall be determined and assured.

              (e)  Instrument Calibration.  Instrumentation shall be
                   calibrated using appropriate standards, when available,
                   or at a minimum, measurement values shall be compared
                   with more accurate measurement systems values on a
                   prescribed basis, with the frequency being defined by
                   demonstrated instrument performance.

              (f)  Reference Materials (Standards).  All calibration and
                   working standards used in a measurement control program
                   shall be traceable to the national measurement base
                   through the use of standard reference materials or
                   certified reference materials and shall have smaller
                   uncertainties associated with their reference values than
                   the uncertainties of the measurement method in which they
                   are used.  Working standards used in a measurement
                   control program shall be representative of the type and
                   composition of the material being measured when the
                   material matrix affects the measured values.  For
                   additional information see "Guidance on Meeting DOE Order
                   Requirements for Traceable Nondestructive Assay
                   Measurements."

              (g)  Sample Exchange Programs.  Each facility's measurement
                   control program shall include participation in
                   appropriate interlaboratory control programs to provide
                   independent verification of internal analytical quality
                   control.

              (h)  Statistical Controls.  For each measurement method used
                   for accountability purposes, control limits shall be
                   calculated and monitored, and documented procedures shall
                   exist to correct out-of-limits conditions.  Control
                   limits shall be established at the two sigma level
                   (warning limits) and three sigma level (alarm limits).
                   Control data exceeding the two sigma limits shall be
                   investigated, and, when warranted, timely corrective
                   action shall be taken.  Whenever a single data point
                   exceeds the three sigma level, the measurement system in
                   question shall not be used for an accountability
                   measurement until the measurement system has been
                   demonstrated to be within statistical control.  For
                   measurement methods relying substantially on operator
                   technique, control limits shall include uncertainties for
                   each analyst/method combination.  Statistical control
                   limits shall be monitored to assure that they are
                   consistent with target values agreed to by the facility
                   management and the Manager, Operations Office.

              (i)  Measurement Method Qualification.  Each facility shall
                   have a documented method qualification program that
                   ensures that a measurement method shall demonstrate
                   acceptable performance before being used for performing
                   accountability measurements.  For destructive analysis
                   and nondestructive assay of nuclear material, this
                   performance shall be demonstrated, at a minimum, once per
                   day that each method is used.  For nondestructive
                   analysis measurement systems where meeting this
                   requirement is impractical or unnecessary, the control
                   measurement frequency shall be at least one of every five
                   measurements, unless otherwise approved by the Manager,
                   Operations Office.

              (j)  Measurement Control Procedures.  Documented measurement
                   control procedures shall be developed at each facility
                   for all measurement methods used for accountability, and
                   each facility shall have a program to assure that
                   measurement control procedures are followed.

         (2)  Statistical Programs.  Each facility shall have a documented
              program for the statistical evaluation of measurement data for
              determining control limits, calibration limits, and precision
              and accuracy levels for each measurement system used for
              accountability.  The objective is to ensure the quality of
              measurement and measurement control data and to provide
              estimates of uncertainty on inventory and inventory control
              statements.  The program, at a minimum, shall contain the
              following elements:

              (a)  Valid statistical techniques to determine the total
                   random error and the measurement biases generated for
                   each measurement system or sampling/measurement system,
                   and to determine control limits, rejection limits, and
                   outlier criteria.

              (b)  A valid statistical technique to develop sampling plans
                   for inventory and measurement of nuclear material.

              (c)  Analyses of measurement control data and reporting to the
                   responsible organization at specified times and
                   frequencies.

              (d)  Documentation of all major assumptions made in each data
                   evaluation process.

5.  MATERIAL TRANSFERS.  Each facility shall have a program to control and
    account for internal and external facility transfers of nuclear
    materials.  This program shall include documented procedures that
    specify requirements for authorization, documentation, tracking,
    verification, and response to abnormal situations that may occur during
    transfer of nuclear materials.  For additional details, see page II-19,
    paragraph 7.  Page II-19, paragraph 7, provides specific directions for
    preparing and submitting DOE/NRC F 741, "Nuclear Material Transaction
    Report," and DOE forms required for documenting external transfers for
    materials accounting purposes.

    a.   External Transfers.

         (1)  The shipper shall obtain written verification and maintain
              documentation that the intended receiver is authorized to
              accept the material before the material is transferred.

         (2)  Transfers of nuclear material between facilities having
              different Reporting Identification Symbols shall be documented
              on DOE/NRC F 741.  These shall be prepared and distributed to
              the principals of the transaction and the cognizant Operations
              Office, preferably on the day of the transfer but within 24
              hours, or on the first workday after the transfer should it
              occur on a nonworkday.  However, Managers, Operations Offices,
              may direct DOE contractors to discontinue the routine
              distribution of DOE/NRC F 741 to their offices.

         (3)  Immediately after receipt, shipments shall be subjected to a
              transfer check.  Transfer checks shall consist of confirmation
              of shipping container or item count, validation of
              tamper-indicating devices integrity and identification, and
              comparison with shipping documentation to provide assurance
              that the shipment was received intact.  For purposes of
              transfer checks, receipt occurs whenever the transfer vehicle
              is unloaded or the transfer vehicle's integrity is breached
              (tamper-indicating devices removed or broken) at the receiving
              facility.  Documented procedures shall specify actions to be
              taken in the event discrepancies are detected.  Records of
              transfer checks shall be maintained and subjected to audit and
              shall be retained at least until the next annual DOE
              safeguards survey.  (For accountability purposes, material in
              transit at the end of a reporting period shall be included in
              the receiver's reported inventory, even though physical
              receipt of the material has not yet occurred.)

         (4)  All unirradiated Category I and II quantities of special
              nuclear material transferred between facilities having
              different reporting identification symbols shall have
              independently measured values determined by the shipper and
              receiver except when the Reporting Identification Symbols are
              both located on the same site and have the same site
              contractor.  The Manager, Operations Office, may require
              measured values for other categories of nuclear material
              transfers, consistent with the strategic and/or monetary value
              of the material, or as required for environmental, safety, and
              operational controls.  Material received shall not be put into
              the process prior to completion of required accountability
              measurements, unless a deviation is approved or the criteria
              defined on page II-15, paragraph 5a(4)(g), apply.  When
              accountability measurements are required and materials are to
              be put in the process prior to making the accountability
              measurements, an agreement should be reached between the
              shipper and receiver as to how significant shipper/receiver
              differences will be handled.

              (a)  The shipper shall independently determine the measured
                   values prior to shipment unless the integrity of the item
                   and of the existing measured values have been assured.
                   The shipper's measured values shall be documented on
                   DOE/NRC F 741 and DOE/NRC F 741A, if applicable.

              (b)  Receiver's accountability measurements for Category I and
                   II quantities of special nuclear material transfers shall
                   be accomplished in accordance with the requirements
                   contained in Figure II-1.  Receivers accountability
                   measurements for transfers involving other categories of
                   nuclear material, where required by the Manager,
                   Operations Office, (see paragraph 5a(4)), shall be
                   performed in accordance with the requirements shown in
                   Figure II-1.  The Manager, Operations Office, may require
                   that precision and accuracy goals be met for measurement
                   of shipments and receipts.  If receiver's accountability
                   measurements cannot be accomplished consistent with
                   requirements in Figure II-1, then confirmatory
                   measurements as outlined in paragraph 5a(4)(f) below
                   apply.

              (c)  Shipper's values may be entered into the receiver's
                   accountability records for nuclear material transfers
                   when the shipper's values are more accurate than those
                   which can be reasonably obtained by the receiver.
                   However, the receiver must perform an accountability
                   measurement within the timeframe specified in Figure II-1
                   to maximize loss detection sensitivity.

============================================================================
| Material Category and  |       Material/1       |    Accountability/2    |
| Attractiveness Level   |      Confirmation      |     Measurements       |
|------------------------|------------------------|------------------------|
|          IA            |     3 working days     |    Shipper's value     |
|------------------------|------------------------|------------------------|
|          IB            |     5 working days     |    10 calendar days    |
|------------------------|------------------------|------------------------|
|        IC, II          |    10 working days     |    30 calendar days    |
|------------------------|------------------------|------------------------|
|          III           |    10 working days     |   120 calendar days    |
|                        |                        | or on input to process |
|------------------------|------------------------|------------------------|
|          IV            |    10 working days     |  On statistical bases  |
|                        |                        |   within 180 days or   |
|                        |                        |   on input to process  |
|========================|========================|========================|
                                 Figure II-1
                  Shipper/Receiver Measurement Requirements

     /1  Material Confirmation.  Confirmatory measurement by nondestructive
         analysis and gross weight check and item count (if not done in
         transfer check).  Confirmatory measurements are not required for
         all materials.  Where confirmatory measurements are required, they
         shall be performed within the timeframes of this table.  Amounts
         less than 50 grams fissile may be accepted at shipper's values.

     /2  Accountability Measurements.  Quantitative determination of
         material quantities (generally within designated measurement
         uncertainty limits); resultant measurement values are entered into
         receiver's accountability records with the exception of those
         materials described in paragraph 5a(4)(c) above and 5a(4)(g), page
         II-15.  Accountability measurements are not required for all
         materials.  Where accountability measurements are required, they
         shall be performed within the timeframes of this table.  Amounts
         less than 50 grams fissile may be accepted at shipper's values.


              (d)  For shipments of unirradiated special nuclear material
                   containing greater than 250 grams of a single special
                   nuclear material type and for each discrete item
                   exceeding 250 grams, limits of error at the 95 percent
                   confidence level shall be assigned to their measurements
                   by the shipper/receiver, for both the element and isotope
                   values.  Limits of error need not be reflected on the
                   DOE/NRC F 741 for external transfers for which
                   verification measurements cannot be performed (refer to
                   paragraph 5a(4)).  For other shipments, the shipper and
                   receiver may estimate the limits of error.  Limits of
                   error are also required for all measurements of external
                   transfers of tritium that exceed 2 grams except as noted
                   above.

              (e)  Shippers and receivers shall provide a system for
                   performing confirmatory measurements on external
                   transfers of special nuclear material.  Whenever
                   accountability measurements cannot be performed within
                   timeframes specified in Figure II-1, confirmatory
                   measurements are required for all transfers of Category I
                   and II special nuclear material and for any other
                   materials for which the Manager, Operations Office,
                   requires shipper/receiver accountability measurements.
                   Documented acceptance/rejection criteria, based upon
                   valid statistical principles, shall be established and
                   used to evaluate confirmatory measurement data.  A
                   response plan for investigation and resolution of
                   confirmatory measurements that fail acceptance criteria
                   shall be developed and implemented; all outliers shall be
                   investigated and resolved.

              (f)  Where delays in completion of the receiver's measurement
                   will result in a protracted delay in closure of the
                   transaction, a confirmatory measurement may be used to
                   effect a "safeguards closure" of the transaction, and
                   documented by an "A-B" entry on the DOE/NRC F 741 and
                   DOE/NRC F 741A, if required.  Such a safeguards closure
                   may be used when the integrity of the shipment is
                   assured, and only accountability measurement differences
                   are possible between shipper and receiver.  When the
                   receiver's accountability measurement performed
                   subsequent to a safeguards closure indicates a shipper/
                   receiver difference, the difference may be resolved by
                   mutual agreement of the Managers of shipper's and
                   receiver's Operations Offices, with an adjustment
                   (correcting entry) to the DOE/NRC F 741 and/or DOE/NRC F
                   741A, if required.  The safeguards closure may be applied
                   only when all of the following conditions are met:

                   1    No discrepancies are found in the verification of
                        the piece count, identification number and integrity
                        of the tamper-indicating devices, and gross weight
                        of the items or containers received, and there is no
                        evidence indicating theft or diversion of the
                        material.

                   2    The sheer's and receiver's confirmation measurements
                        are performed using "comparable" methods and the
                        results of the measurements are within the
                        established limits of agreement.  The term
                        "comparable" here means that the methods measure the
                        same nuclear material attribute and the results of
                        the methods can be compared on a technically valid
                        basis.

                   3    A shipper/receiver agreement, approved by both
                        Managers, Operations Offices, is in effect for the
                        transaction, establishing the criteria for closing
                        transactions based on confirmatory measurements.

              (g)  Limited processing is acceptable for certain materials
                   not amenable to non-destructive assay in order to perform
                   a receipt measurement, as approved by the Managers of
                   shipper's and receiver's Operations Offices with Office
                   of Safeguards and Security concurrence.  Limited
                   processing can include homogenization and dissolution.
                   Materials not amenable to measurement shall be identified
                   in the facility's Materials Control and Accountability
                   Plan.

    b.   Internal Transfers.

         (1)  Each facility's management shall provide a graded system of
              measurements and records to reflect the flow of material
              between Materials Balance Areas within that facility and
              between it and other facilities on the same site.

         (2)  The facility control system shall be designed to monitor
              transfer activities and to deter and/or detect unauthorized
              removal of material during transfers.  The system should flag
              abnormal situations, e.g., when inappropriate transfers of
              quantities and/or materials are made, when unauthorized
              personnel receive or ship materials.

         (3)  Transfers shall be documented on nuclear material transfer
              forms, or an electronic equivalent, that contain required
              information, are prepared and distributed within established
              timeframes, and are signed by authorized custodians or their
              alternates.

         (4)  Materials shall be subjected to a transfer check within one
              workday after receipt.  These checks shall include
              verification of shipping container or item count,
              tamper-indicating devices integrity, and identification
              number.  These transfer checks shall be compared to
              appropriate documentation.  All irradiated special nuclear
              material requires only a transfer check.

         (5)  If the isotope content of special nuclear material (excluding
              uranium enriched below 20 percent U-235) transferred between
              Materials Balance Areas is 50 grams (fissile) or more, the
              transfer shall be measured, or a confirmatory measurement
              made, by the receiver.  Measurements are not required for
              transfers that:

              (a)  Consist of assembled components in which the special
                   nuclear material is physically inaccessible;

              (b)  Are sent to laboratories or nondestructive analysis
                   measurement areas for analysis or examination under
                   conditions which provide adequate internal controls to
                   maintain a continuous awareness of the location and
                   integrity of the special nuclear material until it is
                   returned;

              (c)  Are tamper-safed and contain only Category III or IV
                   quantities of material; or

              (d)  Consist entirely of small items containing less than 25
                   grams each and for which unauthorized accumulation of a
                   Category III quantity of material is not credible.
                   Measurements shall be accomplished in accordance with the
                   schedules shown in Figure II-1.  Materials not amenable
                   to measurement may be subject to measurement requirements
                   in accordance with paragraph 5a(4)(g).

         (6)  Documented acceptance/rejection criteria shall be established
              and used to evaluate measurement data for internal material
              transfers.  In addition, procedures shall specify notification
              and response requirements if material removal or another
              abnormal situation is detected.  These requirements shall be
              consistent with page I-13, paragraph 5, and DOE 5000.3B.

6.  MATERIAL CONTROL INDICATORS.  Each facility's management shall implement
    a program for assessing the material control indicators described below
    in order to provide assurance that losses and unauthorized removals of
    nuclear materials are detected.  Each facility shall have documented
    plans specifying responsibilities and providing procedures for
    evaluating material control indicators.

    a.   Shipper/Receiver Difference Assessment.  Each facility shall have
         written procedures for evaluating shipper/receiver differences, and
         for investigating and reporting significant shipper/receiver
         differences.

         (1)  A shipper/receiver difference is defined to be significant
              when:

              (a)  It involves a discrepancy in the number of items
                   regardless of the quantity of nuclear material;

              (b)  It is statistically significant.  (Determination of
                   whether shipper/receiver difference are statistically
                   significant is only required for those shipments for
                   which accountability measurements are made by both the
                   shipper and receiver.)  A shipper/receiver difference is
                   defined to be statistically significant when the
                   magnitude of the difference exceeds either of the
                   following:

                   1    The limit obtained by a statistical combination of
                        the valid limits of error for the shipper's and
                        receiver's measured values; or

                   2    The square root of two (approximately 1.4) times a
                        single valid limit of error when either the
                        shipper's or receiver's limit of error is not valid.
                        (When both shipper's and receiver's limits of error
                        are determined not to be valid, the limits of error
                        must be recalculated and the statistical
                        significance of the shipper/receiver difference must
                        be reevaluated.)

         (2)  Shipper/receiver difference data shall be subjected to trend
              analysis to detect measurement bias and/or material loss.
              Analyses shall be designed to detect statistically significant
              cumulative shipper/receiver differences and to trigger
              investigations whenever these differences are detected.

         (3)  The receiver shall notify its Operations Office and the
              shipper of any shipper/receiver difference determined to be
              significant.  Both shipper and receiver shall investigate
              their measurements and limits of error.  Such investigations
              shall be completed within 30 working days after the receiver's
              accountability measurements unless a time extension is granted
              by mutual agreement of the involved Managers, Operations
              Offices.  All investigations shall be documented.

         (4)  Significant shipper/receiver differences involving a
              discrepancy in the number of items shall be reported in
              accordance with DOE 5000.3B and the requirements contained on
              page I-13, paragraph 5.

         (5)  When shipper/receiver differences are determined to be
              statistically significant, but the quantities and strategic or
              monetary values are insufficient to warrant an investigation
              and subsequent correction to transfer documents, and when the
              receiver is DOE or one of its contractors or subcontractors,
              the difference need not be investigated and each party shall
              record its own quantitative value.  For the purposes of this
              paragraph, differences of less than 50 grams fissile or less
              than 5 grams of tritium are considered to be insufficient to
              require an investigation unless there are special
              circumstances.  The authority to invoke the stipulations of
              this paragraph shall rest mutually with the Managers of the
              shipper's and receiver's Operations Offices.

         (6)  Resolution of statistically significant shipper/receiver
              differences may be achieved through any of the following:

              (a)  If both shipper's and receiver's Operations Office obtain
                   adequate assurance that the measurements and limits of
                   error are valid, and the investigation indicates that
                   theft or diversion has not occurred, then each facility
                   shall record its own quantitative values; or

              (b)  If either the shipper or receiver agrees to accept the
                   other's value, then the shipper or receiver shall prepare
                   a corrected copy of the shipping document using the
                   other's data; or

              (c)  If the results of the investigations do not result in a
                   satisfactory resolution, the Office of Safeguards and
                   Security shall arbitrate the matter and recommend the
                   action to be taken; or

              (d)  In the case where contracts specify other procedures for
                   arbitration, they shall prevail.

         (7)  The receiving facility shall not process special nuclear
              material contained in a shipment involving an unresolved
              significant shipper/receiver difference unless a shipper/
              receiver agreement allowing this has been approved by both the
              Managers of the shipper's and receiver's Operations Offices.

    b.   Inventory Difference Evaluation.

         (1)  Each facility shall have a documented program for evaluating
              all special nuclear material inventory differences, including
              those involving missing items.  Programs for evaluation of
              inventory differences for other nuclear materials may be
              established at the option of the Manager, Operations Office.
              Procedures shall be provided for establishing control limits
              and requiring investigation when those limits are exceeded.
              Warning limits will be set at the 95 percent confidence level.
              Alarm limits will be set at the 99 percent confidence level.
              All inventory differences exceeding warning or alarm limits
              shall be reported in accordance with DOE 5000.3B and page
              I-13, paragraph 5.  Assessments of inventory differences shall
              include statistical tests (e.g., tests of trends and biases),
              and shall be applied, as appropriate, to both total inventory
              difference and actual inventory difference on an individual
              and cumulative basis for each processing Materials Balance
              Area.

         (2)  Procedures for establishing control limits for inventory
              differences shall be based on variance propagation using
              current data.  The data should reflect operating conditions
              for the material balance period of the inventory.
              Alternatively, other statistically-valid techniques may be
              used but must be justified on the basis of factors such as
              limited data, low transfer rates, categories, and major
              process variations.  The methodology shall be approved by the
              cognizant Manager, Operations Office.  Historical inventory
              difference data shall be evaluated for comparison with the
              statistically based limits, where applicable.  Where the
              propagated or otherwise statistically based methods do not
              yield control limits consistent with historical data, efforts
              shall be made to resolve the discrepancies between the two.

         (3)  Each facility shall have documented procedures for responding
              to and reporting missing items and inventory differences in
              excess of control limits.  The reporting and investigation of
              inventory differences shall be consistent with the
              requirements specified on page I-13, paragraph 5.

    c.   Evaluation of Other Inventory Adjustments.

         (1)  Each facility's management shall establish a documented
              program for evaluating all inventory adjustments entered in
              the accounting records.  The program shall include written
              procedures including equations for applying radioactive decay
              and fission/transmutation adjustments.  A program for holdup
              adjustments must be justified on the basis of measurements or
              other factors.  Procedures shall be outlined for the
              statistical review of inventory adjustments using techniques
              such as tests of trends, biases, and correlation.

         (2)  Procedures shall be implemented to assure that all inventory
              adjustments are supported by measured values or other
              technically justifiable bases.  The program shall include
              procedures for measuring/monitoring environmental waste such
              as stack effluents and liquid waste streams as required by DOE
              5400.1, GENERAL ENVIRONMENTAL PROTECTION PROGRAM.

         (3)  Procedures shall be established for reporting reviews of
              inventory adjustments, including abnormal situations, to the
              Manager, Operations Office.

7.  DOCUMENTATION AND REPORTING.  This paragraph establishes the policies
    for the documentation of nuclear materials transactions, preparation of
    periodic summaries and reports concerning the status of nuclear
    materials held in inventory, reporting of nuclear materials
    transactions, material balances, and other required inventory data to
    the Nuclear Materials Management and Safeguards System and establishes
    the basis for DOE 5633.3B GUIDE OF IMPLEMENTATION INSTRUCTIONS FOR
    NUCLEAR MATERIALS MANAGEMENT AND SAFEGUARDS SYSTEM REPORTING AND DATA
    SUBMISSION which provides required procedures for reporting and data
    submission.

    Departmental Elements and contractors shall document all nuclear
    materials transactions, material balances, and inventories in accordance
    with the instructions provided in DOE 5633.3B GUIDE OF IMPLEMENTATION
    INSTRUCTIONS FOR NUCLEAR MATERIALS MANAGEMENT AND SAFEGUARDS SYSTEM
    REPORTING AND DATA SUBMISSION, and shall transmit this information to
    the national database, Nuclear Materials Management and Safeguards
    System.

    The national database is used to accumulate and distribute information
    concerning nuclear materials transactions and inventories.  The
    objective of the system is to achieve reporting of accurate and complete
    data as soon as possible after the events described by the data occur.

    The national database shall provide nuclear materials information
    relating to safeguards, materials management and production, inventory
    quantities and valuations, and other programs requested or required by
    DOE or Nuclear Regulatory Commission.

    The national database shall serve as the centralized reporting facility
    to provide the information required under the provisions of the
    U.S./International Atomic Energy Agency Safeguards Agreement.

    a.   Forms.  Those forms identified and described in the DOE 5633.3B
         GUIDE OF IMPLEMENTATION INSTRUCTIONS FOR NUCLEAR MATERIALS
         MANAGEMENT AND SAFEGUARDS SYSTEM REPORTING AND DATA SUBMISSION (or
         an equivalent form approved by the cognizant field element) shall
         be used for the documentation and reporting of nuclear materials
         transactions, material balances, and inventories in accordance with
         the instructions provided.  A computer-generated or other approved
         equivalent must contain all information necessary for proper
         documentation and reporting of nuclear materials transactions,
         material balances, and inventories, as appropriate.  The forms may
         be obtained through the DOE Oak Ridge Operations Office, Materials
         Control and Accountability Branch.

    b.   Procedures and Requirements.

         (1)  In addition to the instructions provided in this paragraph,
              specific procedures for completing each data processing form,
              and for submitting the data to the national database are
              contained in the DOE 5633.3B GUIDE OF IMPLEMENTATION
              INSTRUCTIONS FOR NUCLEAR MATERIALS MANAGEMENT AND SAFEGUARDS
              SYSTEM REPORTING AND DATA SUBMISSION.

         (2)  Documentation of Transactions.

              (a)  General.

                   1    Manual Method.  All transfers of reportable
                        quantities of nuclear material (see Figure I-1, page
                        I-2) between organizations with different reporting
                        identification symbols within the U.S., or between
                        facilities in the U.S. and foreign entities, shall
                        be documented on a Nuclear Material Transaction
                        Report (DOE/NRC F 741 and DOE/NRC F 741A, if
                        required).  The procedures and requirements for
                        documentation of transactions assure that
                        accountability for nuclear materials is transferred
                        from shipper to receiver.

                   2    Automated Method.  Consenting Heads of Field
                        Elements may elect to have transaction data
                        automated and transmitted over appropriate
                        telecommunications systems; thus eliminating the
                        manual preparation of the required forms.  If this
                        method is used, all procedures and instructions of
                        this Order shall apply except that signatures on the
                        transaction documents no longer shall be necessary.
                        Internal controls shall assure that the data
                        transmitted have been properly authorized.  The
                        sender and recipient of such automated messages
                        shall produce hard copies of the messages for use by
                        all parties needing copies.  The hard copies shall
                        contain the information normally included on DOE/NRC
                        F 741 and DOE/NRC F 741A, if required.  The
                        automated method of handling and transmitting
                        transfer data shall follow all requirements of the
                        Code of Federal Regulations (see Attachment 1) for
                        activities involving Nuclear Regulatory Commission
                        or "Agreement State" licensees (i.e., commercial
                        waste management sites and those parties with
                        Reporting Identification Symbols beginning with the
                        letters "X" through "Z").

                   3    Either Method.  Material types, elements, and
                        isotopes to be reported, and their respective
                        reporting units, shall be as specified in Figure
                        I-1.  For each detail line of shipper/receiver data
                        shown on DOE/NRC F 741 and DOE/NRC F 741A, if
                        required, material quantities reported by assay may
                        be summarized, but only within the individual assay
                        ranges (e.g., for enriched uranium, within 10.00 to
                        20.00% U-235 or within 80.00 to 92.00% U-235, as
                        appropriate) required for reporting the Composition
                        of Ending Inventory.  Supporting documentation shall
                        be attached to indicate individual quantities that
                        have been summarized.  Nuclear material transactions
                        between facilities by both the automated and the
                        manual method are required to have signatures on the
                        transaction documents, however, signatures can be on
                        either the automated or the manual copy.

                   4    Agreement of Transaction Data.  Data sent to the
                        national database shall agree, on a line-for-line
                        basis, with data sent to the shipper or receiver
                        party to the transaction on DOE/NRC F 741, or
                        automated equivalent.

              (b)  Types of Transfers.

                   1    Physical Transfer of Material.  The shipper shall
                        either include copies of the transfer report
                        intended for the receiver with each shipment, or
                        dispatch the receiver's and other copies of DOE/NRC
                        F 741 and DOE/NRC F 741A, if required, by other
                        means no later than 1 workday following shipment of
                        the material.  The receiver shall prepare and
                        distribute the receiver's sections of DOE/NRC F 741
                        and DOE/NRC F 741A, if required, no later than 10
                        calendar days following receipt of the material.
                        Whenever a facility transfers material to a foreign
                        entity, the shipper shall include with the shipment
                        a copy of DOE/NRC F 741 and DOE/NRC F 741A, if
                        required, containing the shipper's data and special
                        preprinted version of the Concise Note, and shall
                        prepare and distribute the receiver's sections of
                        DOE/NRC F 741 and DOE/NRC F 741A, if required,
                        within 1 workday of receipt of the necessary data.
                        Additional guidance may be provided by the shipper's
                        field element.  Whenever a facility receives
                        material from a foreign entity, the receiver shall
                        prepare and distribute the shipper's sections of the
                        form, or approved equivalent, no later than 3
                        workdays following receipt of the material.  In
                        those cases where the receiver uses DOE-284,
                        "Nuclear Material Transfer Receipt," as an interim
                        document to acknowledge receipt of nuclear materials
                        pending independent determination of material
                        content, DOE-284 shall be prepared and distributed
                        within 10 calendar days following receipt of the
                        material.  If a DOE-284 is submitted, the receiver
                        shall prepare and submit DOE/NRC F 741 and DOE/NRC F
                        741A, if required, within 1 workday after the
                        receiver's measurement has been obtained.  Transfers
                        involving Department of Defense, except for
                        transfers of nuclear material in Navy cores and
                        associated items, shall be documented in accordance
                        with the instructions provided, as supplemented by
                        the Albuquerque Operations Office.

                   2    Nonphysical Transfer of Material.  DOE/NRC F 741 and
                        DOE/NRC F 741A, if required, or an approved
                        equivalent shall be used to record a change in
                        project number, ownership status, or financial
                        responsibility.

                   3    Other Types of Receipts and Removals.  Various other
                        types of receipts and removals including, but not
                        limited to:  production, transfers to and from other
                        materials, sales, decay, losses and other inventory
                        changes including inventory differences, shall be
                        documented by using DOE/NRC F 741 and DOE/NRC F
                        741A, if required, or an approved equivalent.  Such
                        other types of receipt and removal data involving
                        reportable quantities shall be documented and
                        reported consistent with b(4)(a) and (e), page
                        II-27.

              (c)  Special Requirements.

                   1    Notifying Receiver of Nuclear Material Shipments.
                        Each shipper shall be responsible for advising the
                        intended receiver of proposed shipments of nuclear
                        material and for providing all pertinent advance
                        information.  Specific notification requirements
                        applicable to individual facilities are contained in
                        the "DOE Directory of Reporting Identification
                        Symbols."

                   2    Reporting of Material in Transit for Domestic
                        Shipments.

                        a    The shipper shall provide all pertinent
                             quantity information to the receiver for all
                             material in transit at the end of a reporting
                             period.  This requirement may be satisfied
                             through the use of automated telecommunications
                             methods only if both shipper and receiver
                             possess the necessary automated capabilities.

                        b    Reportable quantities of radioactive decay
                             shall be reported to the national database by
                             the shipper and receiver.

                   3    Tracking of Material Within the United States.  Each
                        facility shall submit country control number
                        information in accordance with instructions
                        provided.

                   4    Reporting Units and Rounding.

                        a    Reporting Units.  Element and isotope weight
                             shall be reported in the metric weight units
                             specified for each material type in Figure I-1,
                             page I-2.

                        b    Rounding Policy.  The quantity being
                             transferred shall be reported as shown in
                             Figure II-2, with fractions of 1/2 or greater
                             rounded upwards and fractions of less than 1/2
                             dropped.  Supporting documentation shall be
                             attached to clearly indicate any rounding bias
                             in the total material weight.

                        c    A transfer of multiple discrete items of 0.5 of
                             a reporting unit or less, but of the same
                             material type, shall be summed to a total
                             weight of that material type before applying
                             the criteria of Figure II-2.

============================================================================
|     QUANTITY (When Rounded)        |               ACTION                |
|====================================|=====================================|
| Equal to or greater than 0.5 of    | Report to the nearest whole         |
| the reporting unit.                | reporting unit.                     |
|------------------------------------|-------------------------------------|
| Less than 0.5 of the reporting     | Documentation not required          |
| unit.                              | on DOE/NRC F 741/741A.              |
|====================================|=====================================|
                                 Figure II-2
            Reporting of Nuclear Material Quantities Transferred


                   5    Limits of Error on Transfers of Special Nuclear
                        Material and Tritium.  DOE contractors shall
                        determine and notify DOE of limits of error on
                        transfers of special nuclear material and/or tritium
                        (except in the case of tritium in reservoirs), as
                        specified on page II-11, paragraph 5.  Such
                        notification shall be made using DOE/NRC F 741 and
                        DOE/NRC F 741A, if required, or an approved
                        equivalent.  Limits of error shall be stated on all
                        copies of DOE/NRC F 741 and DOE/NRC F 741A, if
                        required.  The requirements for limits of error as
                        contained in the Code of Federal Regulations (10 CFR
                        70.58(e)) also apply.

                   6    Amendments or Adjustments to Previously Issued
                        DOE/NRC F 741 and/or DOE/NRC F 741A.  When an
                        adjustment is made by one party to a transaction,
                        DOE field elements shall assure that contractors
                        under their jurisdiction document the adjustment on
                        DOE/NRC F 741 and/or DOE/NRC F 741A, if required,
                        and transmit the completed form to the other party
                        to the transaction within 24 hours, or by the close
                        of the first business day after obtaining the
                        adjustment data.

                   7    Transfers of Nuclear Material Between DOE
                        Contractors and Licensees.

                        a    Transfers to Licensees.  DOE contractors who
                             receive authorizations and requests for
                             distribution of nuclear material to a licensee,
                             pursuant to 42 U.S.C. Sections 2073, 2093, and
                             2111 (as amended), shall document such
                             transfers using DOE/NRC F 741 and DOE/NRC F
                             741A, if required.

                        b    Transfers from Licensees.  Transfer documents
                             for nuclear material shipped to DOE for credit
                             or service by a licensed facility are prepared
                             and distributed by the shipper in accordance
                             with the requirements of the Code of Federal
                             Regulations.  When such material is received it
                             shall be documented by the receiver using
                             DOE/NRC F 741 and DOE/NRC F 741A, if required.

                   8    Transfers of Nuclear Material Between the United
                        States and Foreign Nations, Foreign Regional
                        Organizations, or Supranational Organizations.

                        a    General.  Foreign nations, foreign regional
                             organizations, supranational organizations,
                             foreign facilities (hereinafter referred to
                             collectively as "foreign entities") may receive
                             or return U.S. Government-owned or privately
                             owned nuclear material, as applicable, obtained
                             by sale, lease, grant, donation, or loan from
                             DOE contractor facilities, or Nuclear
                             Regulatory Commission or "Agreement State"
                             licensees, pursuant to 42 U.S.C. Sections 2074
                             (as amended), 2094 (as amended), 2112, or
                             2121(c).

                        b    Documentation of Transfers.  Transfers of
                             nuclear material to and from foreign entities
                             shall be documented using DOE/NRC F 741 and
                             DOE/NRC F 741A, if required.

         (3)  Material Balance Report.  Nuclear material balances shall be
              documented and reported in accordance with the instructions
              provided.

              (a)  Material balance reports shall be submitted on or in the
                   format of DOE/NRC F 742, "Material Balance Report."

              (b)  A single material balance report shall be prepared for
                   each material type to document the beginning and ending
                   inventories, and all receipts and removals of nuclear
                   material relevant to the reporting identification symbol
                   being reported on by each facility.  Inventory and
                   transfer data shall be reported for all nuclear material,
                   regardless of whether the material is held pursuant to a
                   DOE contract, under private ownership, or under the
                   provisions of 42 U.S.C. Sections 2073, 2074, 2093, or
                   2094 (as amended).

              (c)  Material types, elements, and isotopes to be reported,
                   and their respective reporting units, shall be as
                   specified in Figure I-1, page I-2.  Each quantity shown
                   on DOE/NRC F 742 shall be rounded to the proper whole
                   reporting unit for the material type.

              (d)  Adjustments, amendments, or corrections to reports shall
                   be made according to the instructions provided.

              (e)  Radioactive decay shall be reported on material balance
                   reports on a quarterly basis when the decay has reached
                   accountable quantities or at a more frequent reporting
                   interval if required by the cognizant Operations Office.

              (f)  DOE F DP-742B, "Material Activity Schedule," shall be
                   submitted in addition to the material balance report by
                   facilities with reporting identification symbols
                   beginning with the letters "A" through "QAA," if
                   applicable.  DOE F DP-742B shall be used for reporting
                   information on DOE-owned loaned/leased nuclear material
                   held for the account of another reporting identification
                   symbol.

              (g)  Material balance reports shall be submitted:

                   1    Semiannually as of March 31 and September 30, for
                        all facilities; monthly or quarterly when directed
                        by the cognizant field element.

                   2    As Specified in facility attachments or transitional
                        facility attachments for DOE facilities selected
                        under the provisions of the U.S./International
                        Atomic Energy Agency Safeguards Agreement.

                   3    In Lieu of the Above, field element managers may
                        request that the national database produce
                        computer-generated material balance reports.  After
                        receipt of all necessary data, such reports shall be
                        sent promptly to the concerned facilities.  The
                        facilities shall review the reports for content,
                        note thereon any changes that are warranted, and
                        sign and distribute the reports.

              (h)  Material in transit at the end of a reporting period
                   shall be reported as if received within the reporting
                   period by the intended receiver.

         (4)  Inventory Reporting.

              (a)  All inventories of nuclear material shall be reported to
                   the national database on DOE F DP-733, "ADP Transcription
                   Sheet for Inventory Data," DOE F DP-733A, "ADP
                   Transcription Sheet for Inventory Data," or DOE/NRC F
                   742C, "Physical Inventory Listing," as appropriate.

              (b)  Material types, elements, and isotopes to be reported,
                   and their respective reporting units, shall be as
                   specified in Figure I-1, page I-2.  Each quantity shown
                   on DOE F DP-733, DOE F DP-733A, and DOE/NRC F 742C shall
                   be rounded to the proper whole reporting unit for the
                   material type.

              (d)  Inventory reports shall be submitted:

                   1    Quarterly, as of December 31, March 31, June 30, and
                        September 30 for all facilities; monthly when
                        directed by the cognizant field element.

                   2    As Specified in facility attachments or transitional
                        facility attachments for DOE facilities selected
                        under the provisions of the U.S./International
                        Atomic Energy Agency Safeguards Agreement.

              (e)  Material in transit at the end of a reporting period
                   shall be included in the receiver's reported inventory as
                   if received by the intended receiver within the reporting
                   period.

         (5)  Data Processing Procedures.

              (a)  Transaction Data shall be submitted to the national
                   database, using DOE F DP-740, "ADP Transcription Sheet
                   Nuclear Material Transaction Journal," and DOE F DP-740A,
                   "ADP Transcription Sheet Nuclear Material Transaction
                   Journal," as soon as possible after the transaction
                   occurs, but no less often than weekly.  Data on all
                   transactions occurring during a calendar month shall be
                   submitted no later than 8 working days following the end
                   of the month during which the transactions occurred.

              (b)  Inventory Data shall be submitted to the national
                   database using DOE F DP-733, or for the facilities
                   selected under the provisions of the U.S./International
                   Atomic Energy Agency Safeguards Agreement, using DOE F
                   DP-733A, as appropriate.  Inventory data shall be
                   submitted within 15 calendar days after the end of the
                   reporting period.

              (c)  Material Balance Report Data shall be submitted to the
                   national database using DOE F DP-735, "ADP Transaction
                   Sheet for Material Balance Report Data," within 15
                   calendar days of the end of the reporting period for
                   facilities selected under the provisions of the U.S./
                   International Atomic Energy Agency Safeguards Agreement.

              (d)  Concise Note Data shall be submitted to the national
                   database using DOE F DP-734 "ADP Transcription Sheet for
                   Concise Notes," at the same time as the submission of the
                   data to which the Concise Note refers.

              (e)  Inventory Difference Explanation Data shall be submitted
                   to the national database, using DOE F DP-740, within 1
                   workday after the explanation data are available, but no
                   later than 8 working days after reporting the inventory
                   difference.

              (f)  Internal Project Transfer Data (within one Reporting
                   Identification Symbol) shall be submitted to the national
                   database using DOE F DP-749, "ADP Transcription Sheet
                   Internal Project Transfers," no later than 8 working days
                   following the end of the month in which the transfer
                   occurs.

              (g)  Confirmatory Receipt Data, when reported on DOE-284,
                   "Nuclear Material Transfer Receipt," shall be submitted
                   to the national database using DOE DP-740, as soon as
                   possible after receipt of the material, but no less often
                   than weekly.  Data on confirmatory receipts occurring
                   during a calendar month shall be submitted no later than
                   8 working days following the end of the month during
                   which the transfers occurred.

              (h)  Alternative Data Submission Methods.

                   1    Machine-Readable Data.  In lieu of the data
                        processing forms specified, data may be submitted to
                        the national database in machine-readable form
                        (e.g., on diskettes or magnetic tape).  Information
                        submitted in machine-readable form shall include all
                        data required on the appropriate form specified, and
                        shall be in the format specified for that form by
                        the Office of Safeguards and Security.

                   2    Use of Telecommunications.  With prior approval of
                        the Office of Safeguards and Security, data may be
                        submitted directly via the appropriate
                        telecommunications system network to the national
                        database in lieu of using the forms specified.
                        Information submitted via a telecommunications
                        system network shall include all data required on
                        the appropriate form specified and shall be in the
                        format specified by the Office of Safeguards and
                        Security.

                   3    In any case where data are submitted in
                        machine-readable form or via a telecommunications
                        system network, the timing requirements of paragraph
                        (5)(a) through (g) above shall apply, as appropriate
                        for the type of data submitted.

              (i)  Correction Data.  Data correcting previously submitted
                   data found to be in error shall be submitted during the
                   workday in which notification of the error is received.