Terms of Engagement110
National. This term should be used to describe fuel cycle arrangements
conducted exclusively under the domestic legal, regulatory, and commercial framework
of a single state.
International. Any activity involving participation by entities (whether
natural or legal persons or governments) from more than one state could be considered
“international.” There are three possibilities, and combinations could
occur among all three: (1) an arrangement conducted (owned and managed) by a fully
international organization, such as the IAEA; (2) a wide spectrum of arrangements
involving participation by differing entities (commercial, governmental, or other)
that do not have a fully “international” character, such as URENCO or
EURODIF; and (3) intergovernmental bodies that could own or manage arrangements
between entities, such as the IUC. There are three subsets:
- Multinational. This term could be taken to mean an arrangement involving
some form of participation by entities from several (not just two) states. It does
not differ significantly from the term “international,” except that
participation in a multinational arrangement might involve a narrower participation
than a fully “international” or universal organization.
- Multilateral Agreement. A multilateral agreement is
defined as a binding agreement between three or more parties concerning the terms
of a specific circumstance. The agreement could be structured in terms of investment,
management, regulatory oversight, or other matters.
However various regions are defined, this term implies that participation in an
arrangement would be limited to entities from a coherent geographical area.
Participation. Utilities in nuclear consumer states as well as nuclear
fuel suppliers and take-back entities are key participants; they can participate
in a range of activities, from providing a revenue source, to partial ownership
interest, to concrete involvement in operation or facility management. The various
responsibilities, and activities of participating entities must be defined. Allowing
participation by entities (whether governmental, private, or other) would be established
based on set criteria.
Ownership/Investment. Any new fuel cycle arrangement will need a clear
indication of what entities are legally entitled to an ownership interest or other
form of financial investment in the arrangement. Given the sensitive nature of fuel
cycle technologies, many states have legal restrictions on foreign ownership or
even investment in such activities conducted within their jurisdiction. However,
there are examples of international or multilateral entities that accept ownership
or investment by governments or private entities and sometimes a mixture of both.
Because an ownership interest also has implications for management, control, access,
and supply issues, the basic instruments establishing a new fuel cycle arrangement
should be explicit in who can own or invest in the arrangement, and what rights
or obligations flow from such investments.
Choice of Law. For most purposes, the
applicable law governing activities of a fuel cycle arrangement would be the law
of the state in which a facility is located.