Nuclear Nonproliferation: Heavy Fuel Oil Delivered to North Korea Under the Agreed Framework Page: 4 of 17
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compile daily and cumulative information on flow rates, and periodic
monitoring visits to each plant. Power outages and the poor quality of the
electrical power available to the plants have affected the operation of the
monitoring equipment. KEDO's monitoring system by itself is not designed
to provide complete assurance that the heavy fuel oil delivered to North
Korea is being used as prescribed by the Agreed Framework. For example,
neither the U.S. government nor KEDO has arrangements with North Korea
for monitoring the large quantities of heavy fuel oil in storage or in transit
to the plants consuming the heavy fuel oil. However, the U.S. government
supplements KEDO's monitoring system with national technical means to
provide additional confidence that the heavy fuel oil is being used for
heating and electricity generation. State Department officials have
acknowledged that there is some evidence that North Korea has used
perhaps 5 percent (or 75,000 metric tons) of the heavy fuel oil for
unauthorized purposes.3 According to State, no clear evidence has
emerged of any significant diversion of the deliveries of heavy fuel oil to
North Korea to unauthorized purposes.
In implementing the Agreed Framework, KEDO will purchase and supply
North Korea with two light-water nuclear power reactors with a combined
total generating capacity of approximately 2,000 megawatts of electrical
power. In exchange, North Korea agreed to freeze the construction and
operation of its existing nuclear reactors and related facilities, to
eventually dismantle this equipment, and to comply with the international
Treaty on the Non-Proliferation of Nuclear Weapons. Until the first reactor
is complete, the United States pledged to arrange to provide alternative
energy to North Korea for heating and electricity generation. At present,
the schedule for delivering the first reactor has not been concluded. The
alternative energy is in the form of 500,000 metric tons of heavy, or
residual, fuel oil delivered annually.4 This type of oil is used for thermal
heating, in power generation facilities, and as fuel for ships. According to
Department of Defense officials, the quantities of other lighter forms of
petroleum, such as gasoline, diesel fuel, or kerosene, that can be extracted
from heavy fuel oil are very small compared with the quantities that can be
extracted from crude oil or refined petroleum products. Through
agreement with North Korea, heavy fuel oil supplied by the organization is
3At the time of this estimate, 1.5 million metric tons of heavy fuel oil had been delivered to North
4A KEDO consultant (Management Strategies, Inc.) estimates that in 1996, 500,000 metric tons
represented 45 percent of North Korea's total annual heavy fuel oil needs.
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United States. General Accounting Office. Nuclear Nonproliferation: Heavy Fuel Oil Delivered to North Korea Under the Agreed Framework, text, October 27, 1999; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc290028/m1/4/: accessed June 17, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.