See the memorandum from R. L. Fonner to J. Joyner dated December 14, 1982. This memorandum states the OELD opinion that 10 CFR 40.13 (c) (1) (vi) applies only to rare earth products containing <0.25% source material by weight. The exemption does not apply to incoming ore or to waste streams. The health physics position was written in the context of 10 CFR 20.301, but it also applies to "new" 10 CFR 20.2001. In its licensing application, Molybdenum Corporation of America was urging a view of 10 CFR 40.13 (c) (1) (vi) that would permit it to include both incoming raw material for rare earth processing and end of processing waste streams under the exemption for rare earth products that do not exceed 0.25% source material by weight. OELD ruled that 10 CFR 40.13 (c) (1) (vi) applies only to rare earth products containing less than 0.25% source materials by weight. The exemption does not apply to incoming ore or to waste streams. In justifying their decision, OELD stated that 10 CFR 40.13 (c) (1) (vi) has identical wording to that contained in 10 CFR 40.60 Schedule I, first promulgated by the Atomic Energy Commission on March 20, 1947. Schedule I stated: " (f) Rare earth metals and compounds, mixtures and products containing not more than 0.25% by weight thorium, uranium, or any combination of these." Therefore, items referred to in 10 CFR 40.13 (c) (1) (vi) are finished commercial products of the rare earth refining process. An exemption for raw material (e.g., for ores or concentrates used as raw material) has to be justified in terms of either 10 CFR 40.13 (a) or (b). The disposal of radioactive waste should be regulated under 10 CFR 20.301 [or, at present, under the requirements of the 10 CFR 20.2001 (a) and (b)] and 10 CFR61. Regulatory references: 20.301, 10 CFR 20.2001, 10 CFR 40.13, 10 CFR 61 Subject codes: 3.8, 9.0, 11.6 Applicability: Source Material