LEASE AGREEMENT
BETWEEN
THE UNITED STATES DEPARTMENT OF ENERGY
AND
THE UNITED STATES ENRICHMENT CORPORATION
LEASE AGREEMENT BETWEEN
THE UNITED STATES DEPARTMENT OF ENERGY AND
THE UNITED STATES ENRICHMENT CORPORATION
UNITED STATES DEPARTMENT OF ENERGY | ||||
BY: | /s/ Samuel W. Bodman | |||
TITLE: Secretary of Energy | ||||
DATE: 12/7/06 | ||||
AND UNITED STATES ENRICHMENT CORPORATION | ||||
BY: | /s/ John K. Welch | |||
TITLE: President & CEO | ||||
DATE: 12/1/06 | ||||
ARTICLE I DEFINITIONS | 2 | |||||
Section 1.1 | Terms | 2 | ||||
Section 1.2 | Headings | 5 | ||||
Section 1.3 | Rules of Interpretation | 5 | ||||
ARTICLE II AUTHORITY OF THE PARTIES | 5 | |||||
Section 2.1 | Corporation | 5 | ||||
Section 2.2 | Department | 5 | ||||
Section 2.3 | Corporation Board of Directors | 5 | ||||
ARTICLE III GRANT OF LEASE | 6 | |||||
Section 3.1 | Lease of Real Property | 6 | ||||
Section 3.2 | Lease of Personal Property | 6 | ||||
Section 3.3 | Department‘s Personal Property on the Leased Premises | 6 | ||||
Section 3.4 | Option to Expand or Reduce Leasehold | 7 | ||||
Section 3.5 | Option Procedures | 8 | ||||
Section 3.6 | Quiet Enjoyment | 8 | ||||
Section 3.7 | Department Option | 8 | ||||
ARTICLE IV LEASED PREMISES AND LEASED PERSONALTY | 9 | |||||
Section 4.1 | Use of Leased Premises and Leased Personalty | 9 | ||||
Section 4.2 | Physical Condition of Leased Premises and Leased Personalty | 9 | ||||
Section 4.3 | Return of Leased Premises and Leased Personalty | 10 | ||||
Section 4.4 | Turnover Requirements | 10 | ||||
Section 4.5 | Permissible Changes | 11 | ||||
Section 4.6 | Decontamination and Decommissioning | 12 | ||||
Section 4.7 | Permits | 13 | ||||
ARTICLE V ALLOCATION OF LIABILITIES | 13 | |||||
Section 5.1 | 13 | |||||
Section 5.2 | 15 | |||||
Section 5.3 | 15 | |||||
Section 5.4 | 15 | |||||
ARTICLE VI SUPPORT | 16 | |||||
Section 6.1 | Electric Power Agreement | 16 | ||||
Section 6.2 | Services Agreement | 16 |
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ARTICLE VII TERM | 16 | |||||
Section 7.1 | Initial Term | 16 | ||||
Section 7.2 | Lease Renewal | 16 | ||||
ARTICLE VIII RENT | 16 | |||||
Section 8.1 | Lease Payment | 16 | ||||
Section 8.2 | Rent During Renewal Periods | 18 | ||||
ARTICLE IX INSURANCE AND DAMAGE | 18 | |||||
Section 9.1 | Corporation Insurance | 18 | ||||
Section 9.2 | Partial Casualty to the Leased Premises | 18 | ||||
Section 9.3 | Total Destruction of Leased Premises | 18 | ||||
Section 9.4 | Partial Casualty to Leased Personalty | 19 | ||||
Section 9.5 | Total Loss of Leased Personalty | 19 | ||||
Section 9.6 | Relationship to Indemnification | 20 | ||||
ARTICLE X PRICE-ANDERSON INDEMNIFICATION | 20 | |||||
Section 10.1 | Price-Anderson Nuclear Hazards Indemnification by the Department | 20 | ||||
ARTICLE XI REPRESENTATIVES | 24 | |||||
Section 11.1 | Site Representatives | 24 | ||||
ARTICLE XII TERMINATION | 25 | |||||
Section 12.1 | Termination for Convenience | 25 | ||||
ARTICLE XIII MODIFICATIONS | 25 | |||||
Section 13.1 | Lease Amendments | 25 | ||||
Section 13.2 | Lease Modifications for Privatization | 26 | ||||
ARTICLE XIV ASSIGNMENTS AND SUBLEASES | 26 | |||||
Section 14.1 | No Assignment; Substitution of Department | 26 | ||||
Section 14.2 | No Assignment; Substitution of Corporation | 26 | ||||
Section 14.3 | Subleases | 27 | ||||
ARTICLE XV MISCELLANEOUS | 27 | |||||
Section 15.1 | Entire Lease | 27 | ||||
Section 15.2 | Notices | 27 | ||||
Section 15.3 | Severability | 28 | ||||
Section 15.4 | No Waiver | 28 | ||||
Section 15.5 | Applicable Law | 28 |
ii
Section 15.6 | Binding Nature of Lease | 28 | ||||
Section 15.7 | Lease not Joint Venture | 28 | ||||
Section 15.8 | Further Assistance | 28 | ||||
Section 15.9 | Licenses | 29 | ||||
Section 15.10 | Property Records and other Information | 29 | ||||
Section 15.11 | Survival | 30 | ||||
Section 15.12 | No Rights in Others | 30 | ||||
Section 15.13 | Department‘s Payment Obligations | 31 | ||||
ARTICLE XVI LEASE OF GAS CENTRIFUGE ENRICHMENT PLANT FACILITIES AND PERSONALTY — APPENDIX 1 | Supp.-2 | |||||
Section 16.1 | Provisions Applicable to Gas Centrifuge Enrichment Plant | Supp.-2 | ||||
Section 16.2 | Termination of the Temporary Lease | Supp.-3 | ||||
Section 16.3 | Transfer of Property . | Supp.-3 | ||||
LIST OF EXHIBITS | ||||||
Exhibit A | Leased Premises | |||||
Exhibit B | Leased Personalty | |||||
Exhibit C | Environmental and Waste Management Agreement | |||||
Exhibit D | Regulatory Oversight Agreement | |||||
Exhibit E | Electric Power Agreement | |||||
Exhibit F | Services Agreement Modification No. 1 | |||||
APPENDIX 1, LEASE AGREEMENT BETWEEN THE UNTIES STATES DEPARTMENT OF ENERGY AND THE UNITED STATES ENRICHMENT CORPORATION FOR THE GAS CENTRIFUGE ENRICHMENT PLANT | App.1-1 | |||||
LIST OF EXHIBITS | ||||||
Exhibit A | GCEP Leased Premises | |||||
Exhibit B | GCEP Leased Personalty | |||||
Exhibit C | June 17th Agreement | |||||
Exhibit D | Nonexclusive Easements and Rights-of-Way | |||||
Exhibit E-1 | Map of Department‘s Personal Property | |||||
Exhibit E-2 | Listing of Department‘s Personal Property | |||||
Exhibit F | Released Facilities and Equipment List | |||||
Exhibit G | Notice of Hazardous Substances | |||||
Exhibit H | GCEP Leased Facilities |
iii
GCEP Lease Exhibits Continued | ||||||
Exhibit I | Condition Reports | |||||
Exhibit J | Estimate of Costs to Decontaminate and Decommission Commercial Plant | |||||
Exhibit��K | Capital Improvements | |||||
Exhibit L | Shared Site Agreement | |||||
Exhibit M | Regulatory Oversight Agreement | |||||
Exhibit N | Activities Required by the Corporation for the Department to Achieve Targeted Turnover Dates in Exhibit A |
iv
UNITED STATES DEPARTMENT OF ENERGY
and
UNITED STATES ENRICHMENT CORPORATION
for the
SUPPLY OF SERVICES
Modification No. 1
1
2
3
4
UNITED STATES DEPARTMENT OF ENERGY | ||||||||
BY: | /s/ Larry W. Clark | |||||||
TITLE: | Assistant Manager for Nuclear Fuel Supply | |||||||
DATE: 12/7/06 | ||||||||
AND | ||||||||
UNITED STATES ENRICHMENT CORPORATION | ||||||||
BY: | /s/ Philip G. Sewell | |||||||
TITLE: | Senior Vice President | |||||||
DATE: December 1, 2006 |
5
6
1. | Maintenance — At DOE’s request, perform maintenance on DOE facilities and calibration on DOE systems and equipment. | |
2. | Janitorial — Provide janitorial services for DOE facilities. | |
3. | Analytical Laboratories — Manage the analytical laboratories and provide analytical services to DOE. | |
*4. | Fire Protection — Manage the Fire Protection Program, including emergency medical services, and provide fire protection to DOE facilities. | |
*5. | Plant Protection and Security Program Administration — Manage the Protective Forces and Security Program and provide services as requested to protect DOE’s security interests. | |
*6. | Emergency Management — Manage and provide the emergency management support systems, including emergency facilities and equipment, emergency response organization, emergency operations center, radiation/criticality accident alarm system, meteorological monitoring system, emergency communication systems, emergency notification system, and emergency notification and reporting. | |
*7. | Utilities — Provide utility services, including water, steam, air, nitrogen, sewer, natural gas, and electricity/ power operations. | |
*8. | Nuclear Materials Control and Accountability — Provide nuclear materials control and accountability functions required for the nuclear materials belonging to DOE that are stored, processed or handled at PAD and PORTS. All program elements shall be administered according to the appropriate DOE Orders. | |
*9. | Computer Services — Manage and provide computing services | |
*10. | Telecommunications — Provide telecommunications systems support and services. | |
11. | Cylinder Handling — Provide inspection, testing, restacking and maintenance of DOE cylinders. | |
12. | Medical — Provide medical services for employees. |
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13. | Stores — Maintenance and management of inventories. | |
14. | Environmental Base — Air, water, and soil monitoring; studies, tests, and analyses. | |
15. | Safety and Health — Health Physics Monitoring, Industrial Hygiene, Radiation Protection, and Safety and Health System. | |
*16. | Records Management — Maintenance, processing, transferring, retrieval, and storage. |
17. | a. | Garage — Provide repair and maintenance services on DOE vehicles. |
*b. | Garage — Repair and maintenance service on radiologically contaminated vehicles/equipment or vehicles/equipment operating in classified or restricted areas/emergency is considered a Captive Service. |
18. | Quality Assurance | |
*19. | Respirator Services — Respirator cleaning and fit testing. Service includes cleaning of contaminated and potentially contaminated respirators, including fit testing services in the on-site respirator facility. | |
*20. | Laundry Services | |
*21. | Radio Repair and Calibration — Frequency synchronization, operation, and maintenance of radio repeaters and operation of radio relay network. | |
*22. | HEU Surveillance and Maintenance — Performance of checks and record pressure on HEU cells, maintenance support of HEU cells; and Uranium Analytical Services for Buffered HEU Cells (Buffer gas sampling and analyses on shutdown HEU cells). | |
23. | Other services if and as agreed to by the Parties. |
8
BETWEEN
THE UNITED STATES DEPARTMENT OF ENERGY
AND
THE UNITED STATES ENRICHMENT CORPORATION
FOR THE GAS CENTRIFUGE ENRICHMENT PLANT
ARTICLE I | DEFINITIONS | App.1-2 | ||
Section 1.1 | Terms | App.1-2 | ||
Section 1.2 | Headings | App.1-8 | ||
Section 1.3 | Rules of Interpretation | App.1-8 | ||
Section 1.4 | Relationships to Other Agreements | App.1-9 | ||
ARTICLE II | AUTHORITY OF THE PARTIES | App.1-9 | ||
Section 2.1 | Corporation | App.1-9 | ||
Section 2.2 | Department | App.1-9 | ||
ARTICLE III | GRANT OF LEASE | App.1-10 | ||
Section 3.1 | Lease of Real Property | App.1-10 | ||
Section 3.2 | Lease of Personal Property | App.1-11 | ||
Section 3.3 | Department’s Personal Property on the GCEP Leased Premises | App.1-12 | ||
Section 3.4 | Department’s Storage of Materials of Environmental Concern in the GCEP Storage Areas | App.1-14 | ||
Section 3.5 | Planning for Site Reuse | App.1-16 | ||
Section 3.6 | Option to Expand Leasehold and No Option to Reduce Leasehold | App.1-17 | ||
Section 3.7 | Option Procedure | App.1-18 | ||
Section 3.8 | Termination of Option to Expand | App.1-18 | ||
Section 3.9 | Quiet Enjoyment | App.1-19 | ||
ARTICLE IV | GCEP LEASED PREMISES AND GCEP LEASED PERSONALTY | App.1-19 | ||
Section 4.1 | Use of GCEP Leased Premises and GCEP Leased Personalty | App.1-19 | ||
Section 4.2 | Physical Condition of GCEP Leased Premises and GCEP Leased | |||
Personalty | App.1-19 | |||
Section 4.3 | Return of GCEP Leased Premises and GCEP Leased Personalty | App.1-21 | ||
Section 4.4 | Turnover Requirements | App.1-26 | ||
Section 4.5 | Permissible Changes | App.1-29 | ||
Section 4.6 | Decontamination and Decommissioning and Turnover Costs | App.1-32 | ||
Section 4.7 | Permits | App.1-32 | ||
ARTICLE V | ALLOCATION OF LIABILITIES (THIRD-PARTY CLAIMS) | App.1-33 | ||
Section 5.1 | Department Disclaimer | App.1-33 | ||
Section 5.2 | Indemnfication by the Corporation | App.1-33 | ||
Section 5.3 | Responsibilities of the Department | App.1-34 | ||
Section 5.4 | Notice and Disputes | App.1-34 | ||
ARTICLE VI | SUPPORT | App.1-35 | ||
Section 6.1 | Services Agreement | App.1-35 | ||
Section 6.2 | Utilities | App.1-35 | ||
Section 6.3 | Regulatory Oversight Agreement | App.1-35 |
-i-
ARTICLE VII | TERM | App.1-36 | ||
Section 7.1 | Initial Term | App.1-36 | ||
Section 7.2 | GCEP Lease Renewal | App.1-36 | ||
ARTICLE VIII | RENT | App.1-38 | ||
Section 8.1 | GCEP Lease Payment | App.1-38 | ||
Section 8.2 | Rent During Renewal Periods | App.1-40 | ||
ARTICLE IX | INSURANCE AND DAMAGE | App.1-40 | ||
Section 9.1 | Corporation Insurance | App.1-40 | ||
Section 9.2 | Partial Casualty to the GCEP Leased Premises | App.1-41 | ||
Section 9.3 | Total Destruction of GCEP Leased Premises | App.1-41 | ||
Section 9.4 | Repairable Casualty to GCEP Leased Personalty | App.1-42 | ||
Section 9.5 | Lost or Destroyed GCEP Leased Personalty | App.1-42 | ||
Section 9.6 | No Duty to Repair or Rebuild by the Department | App.1-43 | ||
ARTICLE X | PRICE-ANDERSON INDEMNIFICATION | App.1-43 | ||
Section 10.1 | Price-Anderson Nuclear Hazards Indemnification by the Department | App.1-43 | ||
ARTICLE XI | REPRESENTATIVES | App.1-48 | ||
Section 11.1 | Authorized Representatives | App.1-48 | ||
ARTICLE XII | TERMINATION | App.1-48 | ||
Section 12.1 | Termination for Convenience | App.1-48 | ||
Section 12.2 | Termination by the Department | App.1-48 | ||
Section 12.3 | Action Upon Termination | App.1-50 | ||
Section 12.4 | Force Majeure | App.1-50 | ||
ARTICLE XIII | MODIFICATIONS | App.1-52 | ||
Section 13.1 | GCEP Lease Amendments | App.1-52 | ||
ARTICLE XIV | ASSIGNMENTS AND SUBLEASES | App.1-52 | ||
Section 14.1 | No Assignment; Substitution of Department | App.1-52 | ||
Section 14.2 | No Assignment; Substitution of Corporation | App.1-52 | ||
Section 14.3 | Subleases | App.1-55 | ||
ARTICLE XV | MISCELLANEOUS | App.1-56 | ||
Section 15.1 | Entire GCEP Lease | App.1-56 | ||
Section 15.2 | Notices | App.1-56 | ||
Section 15.3 | Severability | App.1-57 | ||
Section 15.4 | No Waiver | App.1-57 | ||
Section 15.5 | Applicable Law | App.1-58 | ||
Section 15.6 | Binding Nature of GCEP Lease | App.1-58 | ||
Section 15.7 | GCEP Lease Not Joint Venture | App.1-58 |
-ii-
Section 15.8 | Further Assistance | App.1-58 | ||
Section 15.9 | Property Records and Other Information | App.1-58 | ||
Section 15.10 | Survival | App.1-59 | ||
Section 15.11 | No Rights in Others | App.1-59 | ||
Section 15.12 | Department’s Payment Obligations | App.1-60 | ||
Section 15.13 | Corporation’s Payment Obligation | App.1-60 | ||
Section15. 14 | Environment | App.1-60 | ||
Section 15.15 | Disputes | App.1-61 | ||
Section 15.16 | Transfer of Title to the Corporation | App.1-61 | ||
Section 15.17 | Conditions of Privileges Granted by the Department | App.1-61 | ||
Section 15.18 | Hazardous and/or Radiological Material of Environmental Concern | App.1-61 | ||
Section 15.19 | Cultural Items | App.1-62 | ||
Section 15.20 | Laws, Ordinances, Regulations | App.1-63 | ||
Section 15.21 | Security | App.1-63 | ||
Section 15.22 | Classification | App.1-65 | ||
Section 15.23 | Unclassified Controlled Nuclear Information/Export Controlled Information | App.1-66 | ||
Section 15.24 | Regulatory Oversight of Sections 15.23 — 15.25 | App.1-66 | ||
Section 15.25 | Environmental Impact Statement | App.1-66 | ||
Section 15.26 | Notice of Hazardous Substances | App.1-67 | ||
Section 15.27 | Continuation After Termination of the GDP Lease | App.1-67 | ||
LIST OF EXHIBITS | ||||
Exhibit A | GCEP Leased Premises | |||
Exhibit B | GCEP Leased Personalty | |||
Exhibit C | June 17th Agreement | |||
Exhibit D | Nonexclusive Easements and Rights-of-Way | |||
Exhibit E-1 | Map of Department’s Personal Property | |||
Exhibit E-2 | Listing of Department’s Personal Property | |||
Exhibit F | Released Facilities and Equipment List | |||
Exhibit G | Notice of Hazardous Substances | |||
Exhibit H | GCEP Leased Facilities | |||
Exhibit I | Condition Reports | |||
Exhibit J | Estimate of Costs to Decontaminate and Decommission Commercial Plant | |||
Exhibit K | Capital Improvements | |||
Exhibit L | Shared Site Agreement | |||
Exhibit M | Regulatory Oversight Agreement | |||
Exhibit N | Activities Required by the Corporation for the Department to Achieve | |||
Targeted Turnover Dates in Exhibit A |
-iii-
LEASE AGREEMENT BETWEEN
THE UNITED STATES DEPARTMENT OF ENERGY AND
THE UNITED STATES ENRICHMENT CORPORATION
FOR THE GAS CENTRIFUGE ENRICHMENT PLANT
App. 1-1
DEFINITIONS
App. 1-2
App. 1-3
App. 1-4
App. 1-5
App. 1-6
App. 1-7
App. 1-8
AUTHORITY OF THE PARTIES
GRANT OF LEASE
App. 1-9
App. 1-10
App. 1-11
App. 1-12
App. 1-13
App. 1-14
App. 1-15
App. 1-16
App. 1-17
GCEP LEASED PREMISES
AND GCEP LEASED PERSONALTY
App. 1-18
App. 1-19
App. 1-20
App. 1-21
App. 1-22
App. 1-23
App. 1-24
App. 1-25
App. 1-26
App. 1-27
App. 1-28
App. 1-29
ALLOCATION OF LIABILITIES
App. 1-30
App. 1-31
SUPPORT
App. 1-32
App. 1-33
TERM
App. 1-34
App. 1-35
RENT
App. 1-36
App. 1-37
INSURANCE AND DAMAGE
App. 1-38
App. 1-39
App. 1-40
PRICE-ANDERSON INDEMNIFICATION
App. 1-41
App. 1-42
1. | Negligence; | ||
2. | Contributory negligence; | ||
3. | Assumption of risk; or | ||
4. | Unforeseen intervening causes, whether involving the conduct of a third person or an act of God; |
App. 1-43
App. 1-44
App. 1-45
REPRESENTATIVES
TERMINATION
App. 1-46
App. 1-47
App. 1-48
MODIFICATIONS
App. 1-49
ASSIGNMENTS AND SUBLEASES
(i) | Lease, contract, and work authorization number and type; | ||
(ii) | Name and address of the Department’s representative for each lease, contract, and work authorization; | ||
(iii) | Total dollar value, as amended; and | ||
(iv) | Approximate remaining unpaid balance |
App. 1-50
(1) | The Successor in Interest holds an appropriate Facility Clearance and a favorable Foreign Ownership, Control, or Influence Determination; | ||
(2) | The Successor in Interest assumes all the Corporation’s obligations under the GCEP Lease; |
App. 1-51
(3) | The Corporation waives all rights under the GCEP Lease against the Government; | ||
(4) | The Corporation guarantees performance of the GCEP Lease by the Successor in Interest; and | ||
(5) | Nothing in the novation agreement shall relieve the Corporation or Successor in Interest from compliance with any Laws and Regulations. |
App. 1-52
MISCELLANEOUS
App. 1-53
For the Department: | Mr. Larry Clark, Assistant Manager for Nuclear Fuel Supply Department of Energy Oak Ridge Office P.O. Box 2001 Oak Ridge, TN 37831 Fax: (865) 241-4439 |
For the Corporation: | Mr. Vic Lopiano, Vice-President American Centrifuge USEC Inc. 6903 Rockledge Drive Bethesda, MD 20817 FAX: (301) 564-3205 |
App. 1-54
(a) | Lease number | ||
(b) | Asset type | ||
(c) | Description of item such as name, serial number, and other identifying information | ||
(d) | Property control number, i.e., barcode number | ||
(e) | Unit acquisition cost and unit of measure (estimate if actual is not available) | ||
(f) | Acquisition document reference and date (optional) | ||
(g) | Manufacturer’s name, model and serial number | ||
(h) | Quantity received or fabricated | ||
(i) | Location (site, building or area number) | ||
(j) | Custodial name and organization code or Corporation custodian |
App. 1-55
for the property (can be single point of contact) |
(k) | Use status (active, storage, excess, etc.) | ||
(l) | High risk designation (See, 41 CFR 109-1.53, “Management of High Risk Personal Property”) | ||
(m) | Disposition document |
App. 1-56
App. 1-57
App. 1-58
App. 1-59
App. 1-60
App. 1-61
App. 1-62
App. 1-63
App. 1-64
UNITED STATES DEPARTMENT OF ENERGY | ||||
BY: | /s/ Samuel W. Bodman | |||
TITLE: Secretary of Energy | ||||
DATE: 12/7/06 | ||||
AND |
UNITED STATES ENRICHMENT CORPORATION | ||||
BY: | /s/ John K. Welch | |||
TITLE: President & CEO | ||||
DATE: 12/1/06 | ||||
App. 1-65
GCEP | ||||||
TARGETED | LEASE | |||||
LEASE | EFFECTIVE | |||||
FACILITY | DESCRIPTION | DATE* | DATE | |||
X-220E1 | Evacuation Public Address System | 01/07 | ||||
X-220E3 | Power Public Address Systems | 01/07 | ||||
X-220R | Public Warning Siren System | 01/07 | ||||
X-745G-2 | Cylinder Storage Yard | 01/07 | ||||
X-745H | Cylinder Storage Yard | 01/07 | ||||
X-2220N | Security Access Control and Alarm System | 01/07 | ||||
X-2230J | Liquid Effluent System | 01/07 | ||||
X-2232C (New) | Interconnecting Process Piping Area | 01/07 | ||||
X-3000** | Office Building | 12/06 | ||||
X-3000T1 | IAEA Trailer | 05/05 | GCEP LEASE EXECUTION | |||
X-3001 | Process Building | 04/04 | GCEP LEASE EXECUTION | |||
X-3002 *** | Process Building (South Half) | 09/06 | ||||
Process Building (North Half) | 03/07 | |||||
X-3012 | Process Support Building | 05/04 | GCEP LEASE EXECUTION | |||
X-3346 | Feed and Customer Services Building | 01/07 | ||||
X-3346A (New) | Feed and Product Shipping and Receiving Building Area | 01/07 | ||||
X-3356 (New) | Product and Tails Withdrawal Building Area | 01/07 | ||||
X-6000 | GCEP Cooling Tower Water Pump House | 01/07 | ||||
X-6001 | Cooling Tower | 01/07 | ||||
X-6001A | Valve House | 01/07 | ||||
X-6002 | Boiler System | 03/07 | ||||
X-6002A | Oil Storage Facility | 03/07 | ||||
X-7721 | Maintenance, Stores and Training Building | 01/07 | ||||
X-7725 | Container Wash, Container Dry, Rotor Balance, 4thFloor Control Room | 01/05 | GCEP LEASE EXECUTION | |||
X-7725 | Buffer Storage and 5th Floor | 11/04 | GCEP LEASE EXECUTION | |||
X-7725 | Part of 4th Floor | 01/05 | GCEP LEASE EXECUTION |
1 of 3
THE CORPORATION
GCEP | ||||||
TARGETED | LEASE | |||||
LEASE | EFFECTIVE | |||||
FACILITY | DESCRIPTION | DATE* | DATE | |||
X-7725 | Portions of 2nd, 3rd, 4th Floors | 01/05 | GCEP LEASE EXECUTION | |||
X-7725 | Recycle/Assembly Facility 2nd Floor Office Areas | 10/05 | GCEP LEASE EXECUTION | |||
X-7725 | Recycle/Assembly Facility 3rd Floor Office Areas and Fourth Floor Mechanical Room | 02/06 | GCEP LEASE EXECUTION | |||
X-7725**** | Recycle/Assembly Facility 1st, 2nd, 3rd, 4th, 5thFloors (Remainder of Facility) | 7/07 | ||||
X-7725A | Waste Accountability Facility | 12/06 | ||||
X-7725C (New) | Chemical Storage Building Area | 01/07 | ||||
X-7726 | Centrifuge Training and Test Facility (First Floor) | 06/04 | GCEP LEASE EXECUTION | |||
X-7726 | Centrifuge Training and Test Facility 2nd Floor Office Areas | 01/05 | GCEP LEASE EXECUTION | |||
X-7726 | Centrifuge Training and Test Facility 3rd Floor Office Areas | 12/04 | GCEP LEASE EXECUTION | |||
X-7726 | Centrifuge Training and Test Facility (Remainder of Facility, except for gas test stand area) | 07/05 | GCEP LEASE EXECUTION | |||
X-7726 | Centrifuge Training and Test Facility Gas Test Stand Area | 07/07 | ||||
X-7727H | Interplant Transfer Corridor | 04/04 | GCEP LEASE EXECUTION | |||
X-7745R | Recycle/Assembly Storage Yard | 01/07 | ||||
X-7745S | Area South of X-3001/X-3002 | 01/07 | ||||
X-7746E (New) | Cylinder Storage Yard Area | 01/07 | ||||
X-7746N (New) | Cylinder Storage Yard Area | 01/07 | ||||
X-7746W (New) | Cylinder Storage Yard Area | 01/07 | ||||
X-7746S (New) | Cylinder Storage Yard Area | 01/07 | ||||
XT-860A | Rubb Bldg at X-7725 | 01/07 | ||||
XT-860B | Rubb Bldg at X-3346 | 01/07 | ||||
Department’s Contractor Lay down Area | Triangular area about 3 acres Northwest of X-7721, West of X-2207D, Southeast of Construction Road and West of Truck Access Road | 01/07 |
2 of 3
THE CORPORATION
GCEP | ||||||
TARGETED | LEASE | |||||
LEASE | EFFECTIVE | |||||
FACILITY | DESCRIPTION | DATE* | DATE | |||
Department’s Contractor Trailers | Area North of X-2207E Parking Lot | 01/07 | ||||
Corporation’s Contractor Trailer Area | Approximately 2.8 acres bounded by construction by Construction Road, West by Perimeter Road, North by drainage ditch and area is directly South of X-6614E. | 01/07 | ||||
Common Areas | ||||||
Grassy/Unimproved areas (Area 1) | Grassy/Unimproved areas outlined on drawing DX-CL-1222-A rev. 0, noted as Common Areas | 01/07 | ||||
Grassy/Unimproved areas (Area 2) | Grassy/Unimproved areas outlined on drawing DX-CL-1222-A rev. 0, noted as Common Areas | 03/07 | ||||
GCEP Roads | Roads as identified on drawing DX-CL-1222-A rev 0., noted as Common Areas | 01/07 | ||||
Center Aisle Ways | Center Aisle Ways in X-3001, X-3002, X-3012 and X-7725 as depicted on drawing DX-LS-1214-A. (These areas will remain Common Areas so long as the Department is conducting activities in the X-7725 and X-3002) | GCEP Lease Execution |
* | Targeted Lease Date — The “Targeted Lease Date” represents the parties’ best current estimate of facility availability. The parties agree to seek establishment of an agreed upon date within the month indicated when the facility, system, or area will be leased to the Corporation, absent unforeseen intervening events and subject to the availability of funding as described in Section 15.12, compliance with clearance requirements, and any additional requirements indicated by a double, triple, or quadruple asterisk. In the event that either Party determines that the Targeted Lease Date is not feasible for either Party, the Parties agree, no later than 90 days prior to a Targeted Lease Date, to seek agreement upon a revised Targeted Lease Date or an acceptable GCEP Lease Effective Date. | |
** | Lease of the X-3000 by 12/06 is contingent upon completion by the Corporation of the terms set forth in Exhibit N. | |
*** | Lease of the X-3002 is contingent upon completion by the Corporation of the terms set forth in Exhibit N. | |
**** | Lease of the RCRA permitted storage area in the X-7725 in 7/07 is contingent upon sufficient appropriated funds being made available for such purpose (based upon the Department’s normal practices in fiscal administration and execution of appropriated budgets) and the availability of the X-720. Since the Corporation has requested the Department to treat the Corporation’s troublesome wastes, the Targeted Lease Date will be extended as necessary to accommodate the treatment of the Corporation’s wastes. |
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LEASE MAP PER EXHIBIT A, REV. 0
[MAP CONTAINS EXPORT CONTROLLED INFORMATION,
PLEASE PROTECT APPROPRIATELY]
The following exhibit contains export controlled or official use only information and has been omitted pursuant to a request for confidential treatment.
GCEP LEASED PERSONALTY
Revision 0
The following exhibit contains export controlled or official use only information and has been omitted pursuant to a request for confidential treatment.
AGREEMENT BETWEEN
U.S. DEPARTMENT OF ENERGY (“DOE”) AND USEC INC. (“USEC”)
(June 17, 2002 Agreement)
THE U.S. DEPARTMENT OF ENERGY (“DOE”)
AND
USEC INC. (“USEC”)
Article 1: | Ensure continued removal of Russian weapons-origin highly-enriched uranium (HEU) under the US-Russia HEU Purchase Agreement (“US-Russia HEU Agreement”). |
• | Each year USEC remains the sole Executive Agent (EA) for the United States under the US-Russia HEU Agreement, USEC must order, and take delivery of, if made available by the Russian Executive Agent, LEU derived from at least 30 metric tons per year weapons-origin HEU, subject to instructions to USEC under the US-Russia HEU Agreement and the Executive Agent Memorandum of Agreement (MOA) by the United States Government (USG). | |
• | If USEC satisfactorily performs the above-referenced obligation and all other of its obligations under this Agreement and the US-Russia HEU Agreement, DOE agrees to recommend against the removal, in whole or in part, of USEC as EA under the US-Russia HEU Agreement. | |
• | If USEC fails to meet this obligation, DOE may terminate this Agreement and be released from DOE’s obligations under this Agreement. | |
• | USG retains its rights to remove and replace USEC as EA or to designate additional EAs under the MOA. |
Article 2: | Ensure the stability of existing domestic enrichment capabilities, including operations at the Portsmouth Gaseous Diffusion Plant (GDP) site and continued operation of the Paducah GDP at or above 3.5 MM SWU per year until new, cost-effective advanced enrichment technology is deployed commercially in the U.S. |
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• | USEC will maintain leased real and personal property at the Portsmouth GDP site (other than the property subject to the cold standby contract) in a condition that will permit its consideration as a candidate site for USEC’s deployment of advanced uranium enrichment technology. | |
• | USEC will not unreasonably withhold its agreement for DOE to allow private entities access to and utilize non-leased real and personal property at DOE’s Portsmouth GDP site for activities not associated with enrichment of uranium so long as any such use will not have a material adverse impact on USEC’s advanced enrichment technology program. | |
• | As further described in Article 4 of this Agreement, USEC agrees to operate the Shipping and Transfer (S/T) facilities for 15 months following the execution of this Agreement to remove the contaminants from a portion of its Affected Inventory to meet ASTM C-787-90 or produce material acceptable to USEC for use as feed material in its enrichment facility. | |
• | If USEC fails to maintain leased real and personal property at the Portsmouth GDP site other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for USEC’s deployment of advanced uranium enrichment technology or fails to operate the S/T facilities for 15 months as described above, USEC agrees to waive any statutory exclusive right it may have to lease the Portsmouth GDP under section 3107(b) of the Privatization Act(and the implementing lease provisions) and USEC agrees to waive its rights under Section 3.4(a) and (c) of the lease to include Portsmouth GDP real and personal property in its leasehold before DOE disposes of such property. (In taking any actions as a result of the preceding waivers, DOE agrees that the authorized actions for failure to maintain Portsmouth in a condition that will permit its consideration as a candidate site for deployment of advanced enrichment technology or failure to operate the S/T facilities for 15 months do not include transitioning USEC from its operation of the Paducah enrichment facilities as is provided for in the event USEC “ceases enrichment operations at Paducah” as defined in this Agreement unless there has been a determination that USEC has ceased enrichment operations at Paducah pursuant to that portion of the Agreement.) If USEC fails to maintain leased real and personal property at Portsmouth other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for USEC’s deployment of advanced enrichment technology or fails to operate the S/T for 15 months as described above, as the case may be, DOE also may terminate this Agreement and be released from its obligations under it. |
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• | If USEC plans not to maintain leased real and personal property at Portsmouth other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for USEC’s deployment of advanced uranium enrichment technology or fails to operate the S/T for 15 months as described above, as the case may be, USEC must provide notice to DOE. If DOE believes that USEC is not maintaining leased real and personal property at Portsmouth other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for the deployment of advanced enrichment technology or that USEC has failed to operate the S/T for 15 months as described above, as the case may be, DOE will notify USEC of that belief. In either event, USEC will have an opportunity (within thirty (30) days) to provide its position regarding USEC’s compliance with its obligation to maintain leased real and personal property at Portsmouth other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for the deployment of advanced enrichment technology or to operate the S/T for 15 months as described above, as the case may be, to DOE’s Director of Nuclear Energy, Science and Technology (NE). | |
• | Within sixty (60) days of USEC’s submission to DOE, NE will determine whether USEC is in compliance with the obligation to maintain leased real and personal property at Portsmouth other than the property subject to the cold standby contract in a condition that will permit its consideration as a candidate site for USEC’s deployment of advanced enrichment technology, or to operate the S/T for 15 months as described above, as the case may be, and what action, if any DOE will take. USEC may appeal this determination within thirty (30) days to the Secretary of Energy (or designee), whose determination will be considered to be a final agency action under this Agreement. USEC retains all remedies available to it under the Administrative Procedure Act to challenge the decision of the Secretary (or designee). |
• | USEC shall operate the Paducah GDP at a level at or above 3.5 MM SWU per year as measured each year of USEC’s fiscal year (July 1 to June 30). USEC may not reduce this production level until six months before USEC has the permanent addition of 3.5 MM SWU per year of new capacity installed based on advanced enrichment technology. In the event USEC does not expand its 1 MM SWU commercial plant to a capacity of 3.5 MM SWU per year, USEC shall continue to maintain SWU production at the Paducah GDP at a level at or above 3.5 MM SWU per year as measured each year of USEC’s fiscal year (July 1 to June 30). | |
• | USEC will not unreasonably withhold its agreement for DOE to allow private entities access to and utilize the non-leased real or personal property at DOE’s Paducah GDP site |
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for activities not associated with enrichment of uranium so long as any such use will not have a material adverse impact on USEC’s GDP operations, USEC’s deployment of advanced enrichment technology, or USEC’s compliance with the NRC Part 76 Certificate at the Paducah GDP site. | ||
• | If USEC fails to operate the Paducah GDP at a level at or above an annual rate of 3.5 MM SWU per year as measured each year of USEC’s fiscal year (July 1 to June 30) before USEC is within six months of having installed the permanent addition of 3.5 MM SWU per year of new capacity based on advanced enrichment technology (hereinafter “USEC Paducah GDP production deficiency period”), USEC will have one opportunity in each five-year or six-year lease term to cure this deficiency in the immediately succeeding USEC fiscal year. If USEC repeats a Paducah GDP production deficiency period in the immediately succeeding USEC fiscal year or in any fiscal year thereafter in the same five-year or six-year lease term, USEC agrees to waive its statutory exclusive right to lease the GDPs under section 3107(b) of the Privatization Act (and the implementing lease provisions) and USEC agrees to waive its rights under Section 3.4(a) and (c) of the lease to include GDP real and personal property in its leasehold before DOE disposes of such property.(In taking any actions as a result of the preceding waivers, DOE agrees that the authorized actions for failure to operate the Paducah GDP at or above 3.5 MM SWU per year do not include transitioning USEC from its operation of the Paducah enrichment facilities as is provided for in the event USEC “ceases enrichment operations at Paducah” as defined in this Agreement unless there has been a determination that USEC has ceased enrichment operations at Paducah pursuant to that portion of the Agreement.) In the event of a USEC Paducah GDP production deficiency period (after one unsuccessful cure period in the same five-year or six-year lease term), DOE also may terminate this Agreement and be released from its obligations under it. | |
• | In the event a USEC Paducah production deficiency period falls in the last year of the lease term and USEC certifies to DOE that it will attempt to cure the deficiency by increasing Paducah GDP production to achieve the 3.5 MM SWU per year level, DOE will extend the lease one additional year (with an additional one-year option period, exercisable in the sole discretion of DOE). The preceding sentence affects only the lease term, and does not directly or indirectly affect any other portion of the lease, including Section 4.4 Turnover Requirements ; provided, however, in the event the USEC Paducah production deficiency is cured in the extended one year lease period, the normal lease renewal procedures will be reinstituted thereafter. |
• | USEC will provide quarterly historical production and annual projected production reports to DOE to enable DOE to monitor Paducah operational levels. USEC also shall |
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provide DOE advance notice at least 120 days before implementation of any “plant closing” or “mass layoff” as those terms are defined in 29 U.S.C. 2101 (a)(2) and (3), respectively. | ||
• | If USEC is not within six months of having installed the permanent addition of 3.5 MM SWU per year of new capacity based on advanced enrichment technology and the Paducah GDP will or does fall below an operational level of 3.5 MM SWU per year, USEC must provide notice to DOE. If DOE believes that the Paducah GDP has or will fall below an operational level of 3.5 MM SWU per year, it will notify USEC of that belief. In either event, USEC will have an opportunity (within thirty (30) days) to provide its position regarding USEC’s compliance with its obligation to operate the Paducah GDP at or above 3.5 MM SWU per year to DOE’s Director of Nuclear Energy, Science and Technology (NE). | |
• | Within sixty (60) days of USEC’s submission to DOE, NE will determine whether USEC is in compliance with the 3.5 MM SWU per year commitment and what action, if any DOE will take. USEC may appeal this determination within thirty (30) days to the Secretary of Energy (or designee), whose determination will be considered to be a final agency action under this Agreement. USEC retains all remedies available to it under the Administrative Procedure Act to challenge the decision of the Secretary (or designee). | |
• | If USEC believes that the domestic enrichment market is otherwise stable and viable but that a significant change has taken place in the domestic or international enrichment markets such that continued operation of the Paducah GDP at or above 3.5 MM SWU per year is commercially impracticable, it may present its position to DOE. No amendment to this Agreement is effective without the written agreement of both Parties. |
• | If USEC “ceases enrichment operations at the Paducah GDP”(as defined below) or loses its NRC certificate for operating the Paducah GDP prior to six months before USEC has the permanent addition of 3.5 MM SWU per year of new capacity installed based on advanced enrichment technology, DOE, directly or through contract, may take actions it deems necessary to transition operation of the Paducah GDP site from USEC operation to ensure the continuity of domestic enrichment operations and the fulfillment of supply contracts. USEC shall promptly inform DOE in advance in the event it is planning to cease operations at the Paducah GDP or has advance knowledge that it will lose its NRC certificate for operating the Paducah GDP. | |
• | The term “ceases enrichment operations at the Paducah GDP” means: (i) a determination by USEC to stop the production of enriched uranium at the Paducah GDP; (ii) USEC does not produce enriched uranium at the Paducah GDP at a 1MM SWU per year level |
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for any consecutive 12-month period following execution of this Agreement; or (iii) USEC is not taking actions appropriate to maintaining the ability of the Paducah GDP to operate at an annualized rate of 5.5 MM SWU per year. | ||
• | The Parties agree that the “actions appropriate to maintaining the ability of the Paducah GDP to operate at an annualized rate of 5.5 MM SWU per year” means the Paducah GDP enrichment cascade will be maintained such that at least 150 cells at all times must either be operating, in standby, undergoing maintenance, or on a maintenance schedule (i.e., the cells have not been abandoned ) to be capable of supporting, within an 8-month period, a ramp-up to produce at an annualized rate of 5.5 MM SWU per year, withaproduct assay of up to 4.95 percent at 0.3 percent tails. USEC shall maintain dry air buffering on all cells not utilized for uranium enrichment operations that are capable of being buffered (i.e., cells not in operation, in standby, or undergoing maintenance). USEC shall not discontinue such cell buffering on any cell capable of being buffered (i.e., abandon) without providing DOE at least 180 days’ advance written notice (except in an emergency situation) and provide DOE with the opportunity to protect the barrier at the Paducah GDP site of any cell proposed by USEC for abandonment. In the event of an emergency situation preventing 180 days’ advance notice, USEC shall provide written notice to DOE as soon as reasonably possible after the emergency situation is under control. If DOE commences to protect the barrier of any cell proposed for abandonment, then that cell and related cell equipment shall be deleted from the USEC leasehold and no longer available to USEC for future use in its enrichment operations without the agreement of DOE and reimbursement to DOE for the costs incurred in protecting the barrier. USEC will provide to DOE quarterly reports regarding cell operation to include the number of cells that have been abandoned and the number of cells that are in operation, in standby, undergoing maintenance or on a maintenance schedule, and such other information that DOE may reasonably request to monitor USEC’s performance under this provision. | |
To “transition operation of the Paducah GDP site from USEC operation” to ensure the continuity of domestic enrichment operations and the fulfillment of supply contracts, means USEC agrees that DOE may designate an alternate operator, may terminate all or a portion of the GDP leasehold, and/or require the return of the leased facilities in good and operable condition. USEC also agrees to waive any lease provisions that would interfere with DOE’s ability to step onto the Paducah GDP site for these purposes and agrees not to oppose legislation required to permit DOE’s implementation of this provision (e.g., to amend section 3112 of the Privatization Act to authorize DOE to provide enrichment services). In the event DOE transitions operations of Paducah from USEC, DOE may terminate this Agreement and be released of its obligations under it. | ||
In the event USEC ceases enrichment operations at the Paducah GDP (as that phrase is defined), or in the event USEC loses its NRC certificate for operating the Paducah GDP, the transition of Paducah operation will commence promptly upon DOE’s request and |
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USEC agrees to waive its statutory exclusive right to lease the GDPs under section 3107(b) of the Privatization Act (and the implementing lease provisions) and its rights under Section 3.4(a) and (c) of the lease to include GDP real and personal property in its leasehold before DOE disposes of such property. The foregoing transition will not occur if the period at which USEC ceases enrichment operations at the Paducah GDP (as that phrase is defined), or USEC loses its NRC certificate for operating the Paducah GDP is within six months of USEC’s having installed the permanent addition of 3.5 MM SWU per year of new capacity based on advanced enrichment technology . In the event the parties cannot agree on whether USEC has ceased enrichment operations at the Paducah GDP (as that phrased is defined), USEC will have an opportunity (within thirty (30) days) to provide its position regarding whether USEC has ceased enrichment operations to NE. | ||
Within sixty (60) days of USEC’s submission to DOE, NE will determine whether USEC has ceased enrichment operations at the Paducah GDP and what action, if any, DOE will take. USEC may appeal this determination within thirty (30) days to the Secretary of Energy (or designee), whose determination will be considered to be the final agency action under this Agreement. USEC retains all remedies available to it under the Administrative Procedure Act to challenge the decision of the Secretary (or designee). |
Article 3: | Facilitate the deployment of new, cost-effective advanced enrichment technology in the U.S. on a rapid schedule. |
• | USEC must begin commercial operations of a plant using advanced enrichment technology and with capacity of 1.0 MM SWU per year (expandable to 3.5 MM SWU per year) pursuant to the Milestones described below at the Portsmouth GDP site or the Paducah GDP site. Site selection and operation will be subject to all applicable federal, state and local laws and regulations, including the National Environmental Policy Act, if applicable. | |
• | To ensure the rapid deployment of advanced enrichment technology capacity pursuant to the Milestones set out below, DOE will not dispose of any real or personal property at a GDP site that may be useable for USEC’s deployment of advanced enrichment technology, without first offering USEC the opportunity to include the property within its lease. | |
• | The advanced technology demonstration and deployment milestones for this Agreement are: |
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December 2002 | USEC begins refurbishment of K-1600 facility | |
January 2003 | USEC builds and begins testing a centrifuge end cap. | |
April 2003 | Submit License Application for Lead Cascade to NRC (sited at either Paducah or Portsmouth) | |
June 2003 | NRC dockets Lead Cascade Application | |
November 2003 | First rotor tube manufactured | |
January 2005 | Centrifuge testing begins | |
March 2005 | Submit License Application to NRC for Commercial Plant (sited at either Paducah or Portsmouth) | |
May 2005 | NRC dockets Commercial Plant application | |
June 2005 | Begin Lead Cascade centrifuge manufacturing | |
October 2006 | Satisfactory reliability and performance data obtained from Lead Cascade operations | |
January 2007 | Financing commitment secured for a 1 MM SWU Centrifuge Plant | |
June 2007 | Begin commercial plant construction/refurbishment | |
January 2009 | Begin Portsmouth commercial plant operations, or | |
January 2010 | Begin Paducah commercial plant operations | |
March 2010 | Portsmouth Centrifuge Plant annual capacity at 1 million SWU per year, or | |
March 2011 | Paducah Centrifuge Plant annual capacity at 1 million SWU per year | |
September 2011 | Portsmouth Centrifuge Plant (if expanded at USEC’s option) projected to have an annual capacity at 3.5 million SWU per year, | |
September 2012 | Paducah Centrifuge Plant (if expanded at USEC’s option) projected to have an annual capacity at 3.5 million SWU per year. |
• | Prior to making a decision, public announcement, or NRC license submittal regarding the siting of either the Lead Cascade or the Commercial Plant, as referenced above, at the Portsmouth GDP site or the Paducah GDP site, USEC will consult with and coordinate with DOE. | |
• | USEC shall prepare and submit to DOE an Advanced Enrichment Deployment Plan (the “Plan”) in phases as described below. The Plan shall include a detailed description of each milestone listed above and make specific reference to the actions USEC believes are required to be taken by DOE in order to attain each milestone. Unless otherwise expressly agreed by DOE, all activities related to the development and execution of the Plan will be funded by USEC, except those that, absent the Plan, would have been DOE’s responsibility (e.g., pre-privatization facility D&D). Each phase of the Plan will be submitted to a Technical Coordinating Deployment Working Group (the “Deployment Working Group”) to be made up of DOE and USEC representatives. Except as provided below with respect to the Phase I Plan, within 45 days of the submission by USEC of each phase of the Plan, DOE shall respond in writing as to DOE’s ability to meet the |
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actions requested of DOE as outlined in USEC’s Plan. During this forty-five day period it is expected that there will be a dialogue between USEC and DOE to arrive at a consensus for the timing of USEC and DOE site-specific activities resulting in an agreed-upon Deployment Working Group Plan(“DWG Plan”)that will be used by the Deployment Working Group to monitor milestone progress and act as a benchmark for coordinating DOE site-specific activities. | ||
• | USEC shall submit its Phase I Plan covering the milestones relating to the first twelve months after execution of this Agreement to DOE no later than June 30, 2002 and the Deployment Working Group shall reach agreement on Phase I of DWG Plan no later than July 31, 2002. USEC shall submit its Phase II Plan covering the milestones through the end of 2004 by September 30, 2002, its Phase III Plan covering the milestones through the end of 2006 by November 30, 2002 and its Phase IV Plan covering the milestones through September 2012 by January 31, 2003. The Deployment Working Group will meet periodically to consider amendments to each of these Plans as required to take account of changing circumstances, more complete information and the procedures and remedies outlined below. | |
• | The Deployment Working Group will monitor USEC’s advanced enrichment deployment activities (including demonstration activities), USEC’s milestone progress, and coordinate DOE site-specific activities. USEC will provide DOE access to such supporting documentation, including progress towards meeting milestone dates, as may be needed regarding the deployment of advanced technology, including USEC’s business plan for advanced enrichment technology. | |
• | If DOE believes that USEC has not met a milestone set out in this Agreement, it will provide notice of that belief to USEC. If USEC is aware that it has missed, or will miss, a milestone, USEC will so notify DOE along with an explanation of the reasons for missing the milestone. In either case, USEC will have an opportunity to present to NE its position regarding compliance with the milestone date(s) and its position on whether a delay in meeting the milestone has a material impact on USEC’s ability to begin commercial operations at the new plant on schedule, whether (and how) the delay can be cured, and whether USEC’s delay in meeting the milestone was beyond USEC’s control and without its fault or negligence. NE (within 60 days) will determine whether USEC is in compliance with the required milestone and whether a delay in meeting the milestone has a material impact on USEC’s ability to begin commercial operations at the new plant on schedule. | |
• | If NE determines that a milestone has not been met and that a delay in meeting the milestone has a material impact on USEC’s ability to begin commercial operations at the new plant on schedule, NE will determine whether the delay was beyond the control and without the fault or negligence of USEC, and what, if any, action under the Agreement |
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should be taken by DOE. NE’s determination can be appealed by USEC within 30 days to the Secretary of Energy (or designee), whose determination shall be considered to be the final agency action under this Agreement. USEC retains all remedies available to it under the Administrative Procedure Act to challenge the decision of the Secretary (or designee). | ||
• | Until such time as USEC has secured (and demonstrated to DOE) firm financing commitment(s) for the construction of a 1 MM SWU annual capacity advanced enrichment technology commercial plant and has begun construction of such plant, if USEC fails to meet a milestone and it is determined that a delay in meeting the milestone has a material impact on USEC’s ability to begin commercial operations at the new plant on schedule and that the cause of the delay was beyond the control and without the fault or negligence of USEC, DOE and USEC will jointly agree to adjust the milestones as appropriate to accommodate the delaying event. | |
• | If USEC fails to meet a milestone and it is determined that a delay in meeting the milestone has a material impact on USEC’s ability to begin commercial operations at the new plant on schedule and that the cause of the delay was not beyond the control or without the fault or negligence of USEC:(1) DOE may terminate the Agreement and be relieved of obligations under it; (2) at DOE’s request, USEC agrees to reimburse DOE for any increase in costs caused by expediting the decontamination and decommissioning of facilities to have been used by USEC for deployment of advanced enrichment technology (e.g., increase in overall cost relative to a budget or baseline); (3) USEC agrees to transfer to DOE royalty free exclusive rights in the field of uranium enrichment worldwide in all centrifuge intellectual property owned or controlled by USEC, either developed or background under the ORNL CRADAs; agrees to deliver to DOE copies (copying costs to be reimbursed) of all technical data necessary to further develop or practice technology covered by the transfer of IP rights which data may be subject to proprietary restrictions as appropriate; and agrees to the cancellation of any license by DOE or ORNL to USEC relating to the subject matter of the ORNL CRADAs in the field of centrifuge uranium enrichment; (4) USEC agrees, at DOE’s request, to return any property leased by USEC upon which the advanced enrichment technology project was being or was intended to be constructed; and (5) except for those GDP facilities then currently operating, USEC agrees to waive its statutory exclusive right to lease the GDPs (and the implementing lease provisions) and its rights under Section 3.4(a) and 3.4(c) of the lease to have the opportunity to include GDP property in its leasehold before DOE disposes of the property (In taking any actions as a result of the preceding waivers, DOE agrees that the authorized actions for failure to meet milestone(s) as provided under this provision do not include transitioning USEC from its operation of the Paducah enrichment facilities as is provided for in the event USEC “ceases enrichment operations at Paducah“as defined in this Agreement unless there has been a determination that USEC has ceased enrichment operations at Paducah pursuant to that portion of the Agreement.) |
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• | Once USEC has secured (and demonstrated to DOE) firm financing commitment(s) for the construction of a 1 MM SWU annual capacity advanced enrichment technology commercial plant and has begun construction of such plant, DOE’s remedies described in the previous two paragraphs shall be limited to those circumstances under which USEC’s gross negligence in project planning and execution is responsible for schedule delays or in the circumstance where USEC constructively or formally abandons the project. Further, if USEC has secured (and demonstrated to DOE) a firm financing commitment for the construction of a 1 MM SWU annual capacity advanced enrichment technology commercial plant and has begun construction of such plant, then any use of intellectual property rights or data transferred or delivered pursuant to the previous sentence and item #3 above by third parties for private non-governmental purposes shall be at a reasonable royalty taking into account the relative equities of the Parties. In the event USEC’s gross negligence in project planning and execution is responsible for schedule delays or in the circumstance where USEC constructively or formally abandons the project after USEC has secured (and demonstrated to DOE) a firm financing commitment for the construction of a 1 MM SWU annual capacity advanced enrichment technology commercial plant and has begun construction of such plant, DOE may also recommend USEC’s removal, in whole or in part, as EA under the Russian HEU Agreement. |
• | If USEC is no longer willing or able to proceed with the advanced enrichment technology deployment project, it must provide advance notice to DOE that it intends to abandon the project. In that event, or in the event NE determines (after USEC has had an opportunity to present its position) that USEC’s failure to meet a milestone set out in the Agreement constitutes a constructive abandonment of the advanced enrichment technology deployment project, NE may take, or direct USEC to take as the case may be, any of the actions identified in (1) through (5) above. Any determination by NE is appealable to the Secretary of Energy (or designee), whose determination shall be considered to be the final agency action under this Agreement. USEC retains all remedies available to it under the Administrative Procedure Act to challenge the decision of the Secretary (or designee). |
• | Within thirty days of USEC’s request following the execution of this Agreement, DOE agrees to authorize the execution of the CRADA(with similar terms as the expired CRADA provided such terms are not inconsistent with the terms of this Agreement) by Oak Ridge National Laboratory (ORNL) for the USEC-funded work associated with DOE-owned gas centrifuge technology. The Parties agree to work together in good faith |
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to attempt to negotiate an expanded CRADA to address the scope of ORNL support of the entire demonstration and lead cascade projects. |
• | Without any admission of liability, DOE agrees to replace any out-of-specification uranium hexafluoride (up to 9,550 MTU) not meeting ASTM C-787-90 for commercial natural uranium hexafluoride (the “ASTM Specification”) transferred by DOE to USEC on or about June 30, 1993, April 20, 1998, and May 18, 1998 (the “Affected Inventory”) as described in this provision: | |
(a)In exchange for DOE’s taking title, but not custody (until processing), of DUF6 generated by USEC at the Paducah GDP1 during USEC’s fiscal years 2002 and 2003 and one-half the amount of DUF6 generated during USEC’s fiscal years 2004 and 2005 for a total of up to 23.3 million KgU of DUF6 ( the “Specified DUF6”), USEC agrees to operate, entirely at its cost excluding infrastructure costs (DOE will pay all site infrastructure costs, subject to the availability of appropriations), the Portsmouth Shipping and Transfer (S/T) facilities for fifteen (15) months following the date of execution of this Agreement to remove contaminants from a portion of its Affected Inventory to meet ASTM C-787-90 or produce material acceptable to USEC for use as feed material in its enrichment facility. At the end of each month, USEC will release the United States from any and all liability and claims relating to or arising from DOE’s transfer of the portion of the Affected Inventory equal to the amount processed during the month that meets the ASTM specification or is accepted by USEC, subject to DOE’s taking title to the DUF6 as described above. At the end of the 15-month period, USEC agrees to have released, regardless of the actual amount processed, a minimum of 2800 MTU. Such releases shall first relate to the May 18, 1998 transfer, and continue to relate next to the April 20, 1998 transfer, and then the June 30, 1993 transfer. As USEC operates the S/T facility to remove contaminants to meet the referenced ASTM standard, USEC will provide to DOE monthly reports on the technetium contamination of each cylinder of the Affected Inventory before processing, other available test data after processing and the number of cylinders processed in the S/T facility that meets the ASTM Specification or are accepted by USEC. DOE will document its taking title to the Specified DUF6 upon receipt of USEC’s confirmation of the Specified DUF6 generated |
1 | The DUF6 shall not exceed the design base criteria contained in Table 1 of the DOE RFP NO. DE-RP05-01OR22717, dated October 31, 2000 Part I, Section C, IV.A. (Attachment 1). USEC will ensure that the DUF6 is placed either in new cylinders or in washed cylinders. USEC will provide DOE the data from the samples tested by USEC in accordance with its operating procedures each month for the DUF6 generated. |
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2 All transportation, storage, waste disposal, container purchases and any incidental expenses for processing USEC’s Affected Inventory under paragraph (a) shall be borne by USEC. The Parties will use the agreement found at Exhibit C of the Lease to govern the storage of up to 2 B-25 containers with dimensions of 4’ x 4’ x 6’ of USEC-owned technetium waste generated from the processing of USEC’s Affected Inventory under paragraph (a) which USEC is not authorized by law to store. All transportation and storage expenses for Paducah-generated DUF6 until such time as it has been delivered to DOE at DOE request for conversion and disposal shall be the responsibility of USEC. |
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14
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– | Prompt access by DOE (and designated representatives) to data and information needed to monitor compliance with terms of the Agreement. | |
– | Terms on use and disclosure of trade secret/proprietary information. | |
– | No impairment or modification of Executive Agent MOA. |
/s/ Lee Liberman Otis | /s/ William H. Timbers | |
Lee Liberman Otis | William H. Timbers | |
General Counsel | President and Chief Executive Officer | |
U.S. Department of Energy | USEC Inc. | |
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to
AGREEMENT BETWEEN
THE U.S. DEPARTMENT OF ENERGY (“DOE”)
AND
USEC INC. (“USEC”)
1
to DOE,provided however that DOE shall disclose such item of Trade Secret/Proprietary Information only to the extent required by such law; or (v) DOE determines that such item of Trade Secret/Proprietary Information may provide evidence of a violation of a law by USEC or any other person or a violation of a contractual obligation of USEC, and DOE further determines that disclosure of such item of Trade Secret/Proprietary Information is necessary in order to allow the United States to take action with respect to such violation, which action shall include without limitation, investigating, prosecuting, enjoining, or restraining such violation,provided however that the DOE shall disclose such item of Proprietary Information only to the extent necessary to take such action with respect to such violation.
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3
/s/ Lee Liberman Otis | /s/ William H. Timbers | |||
Lee Liberman Otis | William H. Timbers | |||
General Counsel | President and Chief Executive Officer | |||
U.S. Department of Energy | USEC Inc. |
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and99TC contamination in the DUF6 tails cylinders
Contaminant | ppbu | |||||
238PU | 0.00012 | |||||
239PU | 0.043 | |||||
237Np | 5.2 | |||||
99Tc | 15.9 | |||||
241Am | 0.0013 |
NONEXCLUSIVE EASEMENTS AND RIGHTS-OF-WAY
[RESERVED]
MAP OF DEPARTMENT’S PERSONAL PROPERTY
LISTING OF DEPARTMENT’S PERSONAL PROPERTY
The following exhibit contains export controlled or official use only information and has been omitted pursuant to a request for confidential treatment.
RELEASED FACILITIES AND EQUIPMENT LIST
[RESERVED]
NOTICE OF HAZARDOUS SUBSTANCES
For Buildings to be Leased to USEC
In Support of the American Centrifuge Program
1. | Since the Buildings were constructed in the early 1980s, limited hazardous substances have been used or were present in or around the Buildings. In addition, limited radioactive material including source, special nuclear, and by-product material have been used or were present in or around the Buildings. | |
2. | The Buildings are located at PORTS, which is subject to an ongoing remediation effort by DOE. DOE, U.S. Environmental Protection Agency (EPA), and the Ohio Environmental Protection Agency (OEPA) have entered into agreements for the clean-up of the PORTS reservation. An extensive RCRA Facility Investigation (RFI) has been conducted for the entire PORTS reservation. A Cleanup Alternatives Study/Corrective Measures Study (CAS/CMS) was developed for the area of the reservation where the Buildings are located (Quadrants I and Quadrant III CAS/CMS). The RFI determined that no hazardous contamination existed around the Buildings and adjacent lands, due to past building operations, that would require corrective measures or |
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cleanup. (See Quadrant I Decision Document and Quadrant III Decision Document, dated March 2001 and March 1999, respectively. |
3. | There have been limited radiological activities in Buildings X-3001 North Half, X-7725, and X-7726, and radiological contamination exists within systems/equipment in these three buildings. Access to the contaminated areas in Buildings X-7725 and X-7726 is currently maintained by DOE in accordance with 10 C.F.R. Part 835, “Occupational Radiation Protection.” Access to the contaminated area in Building X-3001 North Half is maintained by the United States Enrichment Corporation (USEC). | |
4. | There has been storage of various hazardous substances in some of the Buildings for more than one year including the following: | |
a. | Areas of Building X-7725 are being utilized as the OEPA permitted DOE RCRA Part B storage facility. These permitted areas contained mixed waste (hazardous and radiological or PCB, hazardous and radiological), and are being clean closed in accordance with the OEPA approved closure plan for Building X-7725. In addition, this facility is being used for the storage of low level radiological waste. | |
b. | Building X-7725A is being used for storage of DOE PCB/radiological waste storage. | |
c. | Buildings X-3001, X-3002, and X-7745R have been or are being used for the storage of DOE low level radiological waste and PCB/radiological waste. | |
d. | Building X-3012 was used as a satellite accumulation area storage facility for RCRA and mixed waste. | |
e. | Building X-3346 contained petroleum products due to activities conducted during the years it was occupied by the Ohio National Guard. The facility also contains radiological contaminated gaseous diffusion plant equipment. |
5. | DOE had an active program in the 1990s to close out all of the regulated underground storage tanks associated with the Buildings listed above. All regulated tanks were removed, except for one tank that was closed in place (filled with sand/grout). The soil surrounding each tank was analyzed for hazardous constituents, and clean closure regulations were met. |
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FACILITY | DESCRIPTION | |
X-3000 | Office Building | |
X-3000T1 | IAEA Trailer | |
X-3001 | Process Building | |
X-3002 | Process Building | |
X-3012 | Process Support Building | |
X-3346 | Feed and Customer Services Building | |
X-6000 | Pump house and Air Plant | |
X-6001 | Cooling Tower | |
X-6001A | Valve House | |
X-6002A | Oil Storage Facility | |
X-7721 | Maintenance, Stores and Training Building | |
X-7725 | Recycle/Assembly Facility | |
X-7725A | Waste Accountability Facility | |
X-7726 | Centrifuge Training and Test Facility | |
X-7727H | lnterplant Transfer Corridor | |
XT-860A | Rubb Bldg at X-7725 | |
XT-860B | Rubb Blda at X-3346 |
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CONDITION REPORTS
[CD ROM — CONTAINS OFFICIAL USE ONLY INFORMATION]
The following exhibit contains export controlled or official use only information and has been omitted pursuant to a request for confidential treatment.
ESTIMATE OF COSTS TO DECONTAMINATE AND DECOMMISSION
COMMERCIAL PLANT
[RESERVED]
CAPITAL IMPROVEMENTS
• | Installation of Gas Centrifuge Machines including, but not limited to Centrifuge Rotors, Casings, Upper Suspensions, Lower Suspension and Drive Assemblies, Diffusion Pumps, Centrifuge Columns and support structures, Centrifuge Machine Drive and Control Systems (classified), Portable Carts, and Centrifuge Process Control and Data Acquisition System (classified). | ||
• | Refurbishment and/or installation of service modules, piping, valves and support equipment for the operation of the cascades | ||
• | Installation of vacuum pumps, chemical traps, cooling water pumps, heat exchangers, chiller systems and control systems to support the operation of the cascades | ||
• | Installation of generators and Uninterruptible Power Supplies | ||
• | Refurbishment and installation of electrical switchgear and heating/ventilation/pressurization control equipment | ||
• | Restoration of elevators, restrooms and utility areas and instrumentation upgrade for building cranes | ||
• | Installation of analytical instruments for measuring performance | ||
• | Installation of carts for feed and emergency inventory withdrawal | ||
• | Removal of concrete from floor supports for installation of centrifuge machines | ||
• | Installation/refurbishment of raw cooling and sanitary water systems and facilities/equipment which utilize these systems. |
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• | Installation of control room and computer equipment | ||
• | Installation of maintenance equipment | ||
• | Restoration of offices, locker rooms, doors and lighting. |
• | Restoration of doors and lighting | ||
• | Restoration of Heating/Ventilation/Air Condition systems | ||
• | Restoration of traffic control systems. |
• | Restoration of restrooms, office areas, lighting, cranes and elevators | ||
• | Restoration of receiving dock area | ||
• | Restoration of column assembly stands | ||
• | Restoration of machine assembly stands | ||
• | Restoration of building utilities and HVAC equipment. |
• | Installation of storage stations for the staging of centrifuge machines subassemblies, rotor, tube, subassemblies, components, and drum shipping container | ||
• | Installation of storage stations for the staging of assembled centrifuge machines. | ||
• | Refurbishment and installation of electrical switchgear, lighting, and heating/ventilation/pressurization control equipment | ||
• | Restoration of cranes, elevators, restrooms and utility areas. | ||
• | Restoration of the battery storage rooms and the transporter storage room | ||
• | Restoration of the battery storage rooms and the transporter storage room | ||
• | Restoration of cranes | ||
• | Restoration of building lighting | ||
• | Removal of dikes | ||
• | Restoration of restrooms, locker rooms, lunchrooms and office areas | ||
• | Restoration of building utilities: electrical substations, HVAC systems, Diesel generators, power backup systems and battery charging equipment | ||
• | Restore elevators | ||
• | Mobile equipment and portable carts | ||
• | Restore maintenance shop and IPT maintenance shop | ||
• | Install a building security access control system | ||
• | Refurbishment/installation of equipment for centrifuge subassembly, component receipt, handling and storage | ||
• | Restore Gas Test stands (4) | ||
• | Restore Gas Test stand utilities: vacuum, electrical, instrumentation, chemical traps, cooling water pumps, heat exchangers, chillers and process vent systems | ||
• | Restore\ Install Rotor Balance stands (24) |
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• | Restore needed Rotor Balance stand utilities: vacuum, electrical, instrumentation, chemical traps, cooling water pumps, heat exchangers, and chillers | ||
• | Restore Static Assembly stands (6) | ||
• | Restore long parts insertion equipment for static stands (6) | ||
• | Restore a Select repair stand (1) | ||
• | Procure Centrifuge Transporters | ||
• | Install Column Assembly stands (6) | ||
• | Install computer equipment | ||
• | Install process area security access control systems as required | ||
• | Installation of cassette supports and related equipment systems |
• | Restore the facility for waste processing | ||
• | Restore the building utilities | ||
• | Restore the building sprinklers |
• | Demo and remove all original equipment and piping not needed for the commercial plant. | ||
• | Construct a new addition to the building for UF6 sampling and transfer operations. | ||
• | Install electric autoclaves, UF6 piping, and utilities to support UF6 sampling and transfer operations in the addition. | ||
• | Install a refrigeration system to support the cooling of autoclave cylinders in the UF6 sampling and transfer area. | ||
• | Install crane rails for 20 ton cranes to support cylinder handling in the sampling and transfer area. | ||
• | Install electric ovens, UF6 piping, and utilities in the west high bay area to supply UF6 feed to the centrifuge cascades. | ||
• | Install a feed purification system to assure the purity of feed material that is fed to the centrifuge machines. | ||
• | Install a UF6 evacuation system and a vent monitoring system to support the feed and UF6 sampling and transfer operations. | ||
• | Install crane rails for 20 ton cranes to support cylinder handling in the feed area. These rails will also interface with the X-3346A Building. | ||
• | Install electrical generators and Uninterruptible Power Supplies | ||
• | Install or refurbish electrical switchgear and HVAC control equipment. | ||
• | Restore offices, locker rooms, control rooms, and utility areas. | ||
• | Install analytical instruments for measuring performance. | ||
• | Construct 4 new cylinder storage yards,X-7746N, X-7746S, X-7746E, and X-7746W, adjacent to the building for UF6 cylinder storage | ||
• | Replace the Interconnecting Process Pipeway (IPP) between X-3346 and X-3001. |
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• | Construct the new X-3346A Feed and Product Shipping and Receiving Building to provide for the shipping and receiving of UF6 cylinders to and from the Commercial Plant. | ||
• | Install crane rails for 20 ton cranes to support cylinder handling in the X-3346A. These rails will also interface with the X-3346 Building | ||
• | Install offices, restrooms and utility areas. |
• | Construct the new X-3356 Product and Tails Withdrawal Building to provide for the withdrawal of UF6 product and tails material from the Commercial Plant. | ||
• | Install product cold traps, UF6 piping, and utilities to support the withdrawal of product UF6 from the centrifuge cascades. | ||
• | Install compressors, UF6 piping, and utilities to support the withdrawal of tails UF6 from the centrifuge cascades. | ||
• | Install support utilities for the compressors — lubrication system, coolant system. | ||
• | Install cold boxes to house receiving cylinders for product and tails withdrawal. | ||
• | Install a refrigeration system to support the product cold trap and cylinder cold box operations. | ||
• | Install a UF6 evacuation system and a vent monitoring system to support the product and tails withdrawal operations. | ||
• | Install crane rails for 20 ton cranes to support cylinder handling in the product and tails withdrawal areas. | ||
• | Install electrical generators and Uninterruptible Power Supplies | ||
• | Install electrical switchgear and HVAC control equipment. | ||
• | Install offices, locker rooms, control rooms, and utility areas. | ||
• | Install analytical instruments for measuring performance. | ||
• | Construct cylinder storage yards adjacent to the building for UF6 cylinder storage. |
• | Refurbish as necessary to support commercial plant. |
• | Construct new cylinder storage yard, X-745H, to store tails cylinders in support of commercial plant. |
• | Upgrade or replace the electrical switchgear and support equipment as necessary. |
• | Upgrade the security system for the commercial plant including fencing, portals, and electronic personnel access monitoring and control. |
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• | Upgrade or replace the recirculating cooling water equipment, refurbish air plant compressors, and refurbish or replace RCW and Air Distributions systems as necessary. |
• | Refurbish the existing cooling tower cells and equipment and install new cooling tower cells if required. |
• | Refurbish office and training areas as necessary. |
• | Refurbish maintenance areas as necessary. |
• | Refurbish the Automatic Stores and Retrieval Systems and place in service. |
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AT THE GASEOUS DIFFUSION PLANTS)
Once the NRC assumes nuclear regulatory oversight for USEC activities at the GDPs, there will be a need to coordinate DOE and USEC activities at the GDPs to ensure that: |
1. | USEC and DOE activities at the GDPs do not adversely affect the operations of the other party in terms of health and safety, environmental protection, safeguards and security, and nuclear regulatory compliance. | ||
2. | Situations with the potential to affect both DOE and USEC operations and personnel, such as emergencies and threats directed toward site activities, are managed in a coordinated manner that protects the safety and health of DOE and USEC personnel, including their respective contractors/subcontractors, and the public. |
The following premises support the proposed resolution of shared site issues: |
1. | This joint USEC and DOE approach to shared site issues does not modify, amend, or. alter in any way the lease1 between USEC and DOE for the GDPs, or any memoranda of agreement, or any other agreements between USEC and DOE. | ||
2. | The site can be divided into three types of areas: 1) DOE areas (generally non-leased) in which DOE managed or overseen activities, which are exempt from NRC regulation under Section 110.a of the Atomic Energy Act of 1954, as amended, are conducted; 2) USEC leased areas in which USEC activities subject to NRC regulation are conducted; and 3) common areas (e.g., site roads) which are used for USEC and DOE activities. |
1 | The term “lease” refers to the Lease Agreement between the United States Department of Energy and the United States Enrichment Corporation dated as of July 1, 1993. |
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3. | DOE will self-regulate DOE activities conducted in DOE areas and common areas in accordance with applicable DOE requirements. This includes DOE personnel and their contractors/subcontractors. DOE assumes full responsibility for the safety, safeguards, and security of DOE activities. | ||
4. | USEC activities conducted in USEC areas and common areas are subject to NRC regulation under terms of the certification application. This includes USEC personnel, their contractors, and subcontractors. USEC assumes full responsibility for the safety, safeguards, and security of USEC activities. |
1. | Shared Systems and Continuity of Essential Services |
USEC provides certain services and utilities (e.g., lighting, heat) to DOE that are necessary for the safety, safeguards, or conduct of DOE activities. Similarly, USEC and DOE activities are protected or supported by shared systems (e.g., nuclear criticality and security alarm systems, fire protection sprinklers) that are important to the safety and safeguards of USEC and DOE activities. | |||
USEC and DOE will work together to ensure that interruptions to services necessary for the safety, safeguards and security of the GDPs are minimized and that shared systems remain operable. Additionally, USEC will apply configuration management controls to these systems, in a manner commensurate with that applied to equivalent USEC systems, to ensure that the safety, safeguards and security systems, and conduct of USEC and DOE activities are not adversely affected. Similarly, USEC and DOE will work together to establish a process for controlling the scheduling of interruptions to essential services to ensure that the safety, safeguards, and security of the GDPs are not adversely affected. |
2. | Control of Work Activities |
DOE and USEC agree that activities in leased spaces must be conducted in accordance with USEC commitments to NRC. Accordingly, DOE (including their contractors/subcontractors) will obtain USEC’s approval prior to conducting work in leased spaces. Similarly, prior to conducting work in non-leased spaces, USEC (including their contractors/subcontractors) will obtain DOE’s approval. Both parties will strive to ensure that such approvals do not impede the schedule for the work activities of either party. Additionally, both parties will ensure that work activities that affect either party are conducted in accordance with the appropriate procedures. |
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3. | Plant Changes |
DOE and USEC agree to establish procedural controls to ensure that each party is promptly notified, and appropriate approvals obtained, prior to conducting activities that affect the design, construction, operation or maintenance of facilities and systems on their respective portions of the GDP sites. This process will allow the other party to evaluate the potential safety impact of such a change on its own facilities, systems, and activities at the site. | |||
USEC will provide DOE with a copy of each approved written Safety Analysis issued in accordance with 10 CFR § 76.68 with respect to any changes to the leased premises or the operation of the leased premises at either GDP site. Similarly, DOE will provide USEC with a copy of each Unreviewed Safety Question Determination (USQD) or Safety Analysis prepared by or for DOE with respect to any changes to DOE’s facilities, systems, or operations at either GDP site. Each party will provide the other with pertinent information concerning any Unreviewed Safety Question (USQ) identified in connection with its operations and activities at either GDP site, including any Justification for Continued Operation (JCO) or similar document prepared in connection with such USQ. In the event that either party has a concern about the potential impact of any plant changes by the other party on the safety of its own operations and activities at either GDP site, the appropriate USEC and DOE representatives for that site shall jointly review the change and take appropriate action to resolve the concern (including any required plant modifications) in a prompt manner. |
4. | Emergency Management Coordination |
In accordance with Exhibit F of the lease, USEC will provide emergency response training to DOE personnel, DOE contractors, and personnel of third party tenants of DOE at each of the GDPs. In accordance with the lease, DOE will reimburse USEC for the cost of this service. DOE will make the necessary arrangements to assure that these personnel attend such training and be responsible for tracking their participation to assure they receive the required initial and periodic training. | ||
The Emergency Plan for both GDPs describes the roles and responsibilities of USEC and DOE in the event of an emergency. For a declared emergency, USEC has the lead in responding to the emergency and DOE serves as an onsite member of the Emergency Operations Center. This relationship will continue to be maintained when NRC assumes regulatory oversight of the GDPs. | ||
In the event of an emergency, in coordination with the USEC emergency management team, DOE will take the appropriate actions to control activities in the reservation area surrounding each of the GDP sites, as defined in the current Emergency Plan for each GDP. This includes |
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the exclusion or evacuation of personnel from such area during an emergency. Additionally, USEC has ample authority to restrict access to the controlled area of the GDPs2 for the purposes of plant protection, security, emergency preparedness, and radiation protection.3 |
5. | Third Party Activities on GDP Sites |
DOE and USEC agree to promptly provide each other with pertinent information concerning any operations or activities being conducted on their respective portions of each of the GDP sites, and the surrounding DOE-owned reservation on which that site is located, by or on behalf of third parties (e.g., the National Guard and other DOE tenants or lessees) that could have a potential impact on the operations or activities of the other party at that site. Specifically, DOE will provide USEC (and vice versa) with a written description of each existing third party lease agreement for each GDP site, including a detailed description of (a) any hazardous materials used or stored on site in connection with such lease, (b) any operations or activities being conducted under such lease that could pose a hazard to USEC‘s operations on the leased premises or act as an initiating event for an accident on the leased premises, and (c) any transportation or other access requirements on the leased premises or common areas of the site associated with such lease, particularly with respect to the transportation or storage of hazardous materials or equipment. Such descriptions shall be updated promptly to reflect changes in third party activities. In the event that either party has a concern about the potential impact that third party activities could have on the safe operation of either GDP site, the appropriate USEC and DOE representatives for that site shall jointly review the issue and take appropriate action to resolve the concern in a prompt and cost-effective manner. |
6. | Physical Protection Coordination |
Effective access control and response to threats against site activities and facilities requires integrated access control for USEC and DOE activities and coordinated command and control in responding to threats against site facilities and activities. USEC will continue to maintain a physical security protection plan for the GDPs which defines the roles and responsibilities of the site security organizations. In the event of a security threat at the GDPs (including both leased and non-leased areas), USEC’s security force has the responsibility to initially respond to the threat and determine the appropriate course of action. Depending on the significance of the security threat, the Emergency Operations Center at the affected site will be activated and, as discussed in Item 4 of this enclosure, USEC and DOE will respond accordingly. This relationship will continue to be maintained when NRC assumes regulatory oversight of the GDPs. |
2 | The controlled area is defined as an area outside the restricted area but inside the site (reservation) boundary. | |
3 | See USEC letter to NRC dated December 13, 1995, in response to Question 2.0Q5 of the application for PGDP and PORTS. |
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7. | Event Notification |
USEC will promptly notify DOE of any reportable events required by 10 CFR 16 or other applicable NRC regulations. This notification will normally be made by the Plant Shift Superintendent‘s (PSS) office. However, this notification will not take precedence over the prompt notification of the NRC as required by NRC regulations. Similarly DOE will promptly inform USEC of any reportable events, under DOE’s occurrence reporting system, for which DOE is responsible. Such notification will normally be made to the PSS’s office. |
8. | Helipad |
USEC will establish written controls for helicopter access to the GDP sites, and the air space over the sites for use by USEC, DOE, or other DOE tenant organizations at the sites and to assist state or local law enforcement or emergency response personnel. Once established, DOE. agrees to abide by these controls. As part of these controls, DOE will obtain USEC’s concurrence from the PSS prior to utilizing the site helipad. |
9. | Communication of Incident Information and Media Coordination |
DOE and USEC will coordinate information releases to the media in the following manner: |
a. | DOE has the lead role in providing information relating to DOE activities and USEC will refer the media to DOE in such cases; and | ||
b. | USEC has the lead role in providing information relating to USEC activities and DOE will refer the media to USEC in such cases unless there is a need for DOE to provide information in its role as site landlord. | ||
c. | DOE and USEC will promptly provide each other with information copies of news releases of events that occur at the GDPs. |
10. | Radiation Protection |
Radiation Protection (e.g., exposure monitoring) of employees is the responsibility of the employer (USEC or DOE) and is independent of the activities upon which they are working. That is, radiation protection for DOE personnel and their contractors/subcontractors is performed under the DOE radiation protection program. Similarly, radiation protection for USEC personnel and their contractors/subcontractors is performed under the USEC radiation program. In addition: |
a. | Radiation exposure information for individuals who work on both DOE and USEC activities will be shared to permit DOE and USEC to satisfy their radiation exposure reporting requirements; and |
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b. | DOE will provide NRC with the radiation exposure information for DOE employees and their contractors/subcontractors, as requested, in order to meet NRC’s reporting requirements. |
In accordance with Exhibit F of the lease, USEC will provide radiation protection training to DOE personnel, DOE contractors, and personnel of third party tenants of DOE at each of the GDPs. In accordance with the lease, DOE will reimburse USEC for the cost of this service. DOE will make the necessary arrangements to assure that these personnel attend such training and be responsible for tracking their participation to assure they receive the required initial and periodic training. |
11. | International Atomic Energy Agency (IAEA) Safeguards Agreement Implementation |
DOE and USEC will cooperate with the NRC in the development, review, and revision of Subsidiary Arrangements and Facility Attachments for DOE and USEC activities at the sites which are applicable to the safeguards requirements of the IAEA. |
12. | Unclassified Controlled Nuclear Information (UCNI) |
DOE is developing guidelines with consultation and technical support from USEC for the identification of UCNI at the GDPs and will provide these guidelines to NRC. |
13. | Access to Deleased Outside Areas |
All activities in non-leased areas will be executed consistent with DOE requirements. USEC procedures which comply with NRC requirements may be utilized provided they meet or exceed equivalent DOE requirements. Subject to DOE approval, USEC may be permitted to run additional or new utilities over and/or under these outside areas to serve additional needs of USEC and DOE. USEC will contact DOE prior to work in these areas and will not violate any requirements imposed on the DOE by other regulatory agencies (e.g. EPA, OSHA). In cases where prior notification would deter USEC’s ability to respond to an exigent situation (e.g., emergency response situations, water main breaks, etc.), notification will occur as soon as practical. |
CONCURRED BY: | ||
Joe W. Parks Date 3/30/98 | George P. Rifakes Date | |
Department of Energy | United States Enrichment Corporation | |
Asst. Manager for Enrichment Facilities | Executive Vice President |
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1. | The term “As Found” means a condition where the as-built configuration of the plant or the as-implemented program, policy, or procedure does not agree with the Authorization Basis. | ||
2. | The term “Authorization Basis” means the documentation of programs, processes, and facility configuration upon which the Department of Energy (DOE) authorizes the safe and secure operation of an activity or facility in its facilities subject to DOE’s regulatory oversight. The Authorization Basis is described in documents such as the facility Safety Analysis Report, Hazard Classification Documents, Technical Requirements, DOE-issued Safety Evaluation Reports, Security Plans, and the facility specific written commitments made in order to comply with DOE requirements under the GCEP Leased Premises Regulatory Oversight Agreement (GCEP ROA). | ||
3. | The term “CI” or “Classified Information” means Restricted Data and Formerly Restricted Data protected against unauthorized disclosure pursuant to the Act and National Security Information that has been determined pursuant to Executive Order 12958, as amended March 25, 2003, or any predecessor or successor executive order to require protection against unauthorized disclosure and that is marked to indicate its classified status when in documentary form. | ||
4. | The term “CI Civil Penalty” means a monetary penalty that may be imposed for a violation or violations relating to the security or safeguarding of Classified Information as established in 10 CFR Part 824. |
5. | The term “CI Notice of Violation” means a document setting forth the determination that one or more violations relating to the security or safeguarding of Classified Information have occurred. | ||
6. | The term “CI Violation” means a failure of the Corporation to meet any of the DOE requirements relating to the security or safeguarding of Classified Information incorporated into this Agreement. Each failure may be considered a separate occurrence of a violation, in addition the failure may be considered as a new violation each day that the same violation persists. | ||
7. | The term “Clear and Present Danger” means a condition or hazard that could be expected to cause: (a) either death or serious harm to plant workers or the public, or (b) serious damage to the common defense and security, immediately or before such condition or hazard could be eliminated through the normal enforcement mechanisms discussed in this Agreement. | ||
8. | The term “Corporation” means the United States Enrichment Corporation, its sublessee(s), its agents and representatives and its successors and assigns. | ||
9. | The term “Decreased Effectiveness Evaluation” means an evaluation to ensure that the proposed change does not decrease the effectiveness of the safeguards and security plans. The evaluation is conducted as prescribed in 10 CFR Part 70.32 or 10 CFR Part 76.68 as appropriate. | ||
10. | The term “DOE Functional Area Implementation Requirements” means the implementation requirements with respect to the nuclear safety, safeguards and security objectives as set forth in of Appendix A to this Agreement. | ||
11. | The term “DOE Inspector” means a DOE safety and health or safeguards and security professional supporting DOE Functional Areas Implementation Requirements oversight activities. | ||
12. | The term “DOE ORO Manager” means the Manager of DOE Oak Ridge Office or one or more DOE employee(s) whom that Manager has designated, in writing, to act for him in all, or a portion, of the matters addressed herein. | ||
13. | The term “DOE Regulatory Oversight Manager” means the DOE representative, or his designee, responsible for implementation of all facets of DOE regulatory oversight of the GCEP Leased Premises. |
14. | The term “GCEP Leased Premises” means the definition ascribed in the GCEP Lease. | ||
15. | The term “OPAE” means the Office of Price-Anderson Enforcement in DOE Headquarters. | ||
16. | The term “OPAE Civil Penalty” means a monetary penalty that may be imposed for a violation or violations for violation of 10 CFR Parts 830 and 835 requirements. | ||
17. | The term “OPAE Notice of Violation” means a document setting forth the determination of the DOE Office of Price-Anderson Enforcement that one or more violations of the 10 CFR Part 830 and 10 CFR Part 835 exemption requirements have occurred. | ||
18. | The term “OPAE Violation” means a failure of the Corporation to meet any of the 10 CFR Part 830 exemption requirements or the 10 CFR Part 835 exemption requirements incorporated into this Agreement. Each failure may be considered a separate occurrence of a violation, in addition the failure may be considered as a new violation each day that the same violation persists. | ||
19. | The term “ROA” means the Regulatory Oversight Agreement between the Department of Energy and the United States Enrichment Corporation for the GCEP Leased Premises. | ||
20. | The term “ROA Civil Penalty” means a monetary penalty that may be imposed for violation of DOE Functional Area Implementation Requirements. | ||
21. | The term “ROA Notice of Violation” means a document setting forth the determination DOE Regulatory Oversight Manager that one or more violations of the DOE ROA Functional Area Implementation Requirements have occurred. | ||
22. | The term “ROA Violation” means a failure of the Corporation to meet any of the Functional Area Implementation Requirements incorporated into this Agreement. Each failure may be considered a separate occurrence of a violation, in addition the failure may be considered as a new violation each day that the same violation persists. |
23. | The term “Safety Analysis” means a systematic analysis that identifies facility and external hazards and their potential for initiating accident sequences, the potential accident sequences, their likelihood and consequences, and any accident preventing or consequence mitigating features. | ||
24. | The term “Safety System” means those structures, systems, and components (SSCs) that are relied upon to prevent, control, or mitigate unacceptable consequences resulting from the hazards identified for a facility. SSCs are designated as “Safety Class” if they are necessary to keep hazardous exposures to the public below the offsite Evaluation Guidelines. SSCs are designated as “Safety Significant” if their functions are major contributors to defense in depth and/or worker safety, as determined from the Safety Analysis. | ||
25. | The term “Technical Requirements” means the technical specifications, operational requirements, and maintenance requirements for an item identified as “Safety Significant” are referred to in this GCEP ROA as Technical Requirements. Changes to Technical Requirements must be accomplished through a formal Change Control Process established by the lessee. | ||
26. | The term “Unreviewed Safety Question” means the determination that a proposed change is outside the bounds of previously DOE-approved Authorization Basis. | ||
27. | The term “Unreviewed Safety Question Evaluation” means the process by which changes to the facility, equipment within the facility, or processes within the facility must be reviewed to determine if there is an impact on safety for the activities subject to DOE regulatory oversight. Changes will undergo a formal Change Control Process, but if a change could have a negative impact on safety to activities subject to DOE regulatory oversight, an Unreviewed Safety Question (USQ) Evaluation will be conducted and documented to determine whether the change is within the approved Authorization Basis or outside of the Authorization Basis. Changes that do not affect the safety of activities undertaken under DOE regulatory oversight are not subject to review under the GCEP ROA. Such changes will be subject to the applicable NRC requirements. | ||
All other capitalized terms shall have the meaning ascribed to them elsewhere in this Agreement or the appendices hereto, or the GCEP Lease. |
1. | DOE has determined that the DOE Functional Area Implementation Requirements set forth in Appendix A are reasonable and appropriate, and shall constitute the Nuclear Safety and Safeguards and Security Requirements applicable to the GCEP Leased Premises, and that compliance with these DOE Functional Area Implementation Requirements will enable the GCEP Leased Premises to continue to operate safely and protect the public health and safety and provide for the common defense and security. | ||
2. | DOE has determined that the program of Corporation self-assessments and DOE inspections, reviews, and other activities is reasonable and appropriate. DOE and the Corporation further agree that this Regulatory Oversight Program will constitute the mechanism by which DOE will exercise regulatory oversight and control over the GCEP Leased Premises with respect to nuclear safety, safeguards and security. | ||
3. | The Corporation agrees to ensure that the Corporation activities continue to comply with the Functional Area Implementation Requirements in Appendix A. The Corporation agrees to impose these commitments on any subcontractor/vendor/partner while performing activities in support of the |
American Centrifuge Plant performed pursuant to the Functional Area Implementation Requirements identified in Appendix A of this Agreement. The Corporation further agrees, as part of the Regulatory Oversight Program, to undertake the self-assessment activities delineated in the Functional Area Implementation Requirements, to cooperate with DOE in the inspections, reviews, and other activities conducted by DOE in accordance with the Regulatory Oversight Program; and to implement corrective or preventive actions as a result of these assessments, inspections, reviews, and other activities. |
4. | A. | DOE has determined that DOE’s Regulatory Oversight Program of the GCEP Leased Premises, including all of the self-assessments, inspections, reviews, and other activities described in the Regulatory Oversight Program, will be coordinated by the DOE Regulatory Oversight Manager. The DOE Regulatory Oversight Manager will have the authority to modify the Functional Area Implementation Requirements, including the authority to make additions or deletions to these requirements, if the DOE Regulatory Oversight Manager determines that the additional requirement is necessary to protect the public health and safety or to provide for the common defense and security, or the deleted requirement is no longer necessary to protect the public health and safety or to provide for the common defense and security in connection with the operation of the GCEP Leased Premises. | |
B. | The Corporation is authorized to add to, modify, or delete (“Change”) any of the policies, procedures, practices and other implementation measures utilized to meet the Functional Area Implementation Requirements, provided (1) there will be no material diminution in the level of protection of the public health and safety or common defense and security as a result of such Change; (2) the Change does not involve an Unreviewed Safety Question or a Change in the Authorization Basis or an Operational Safety Requirement; (3) auditable records containing a summary of the Changes performed and retrievable evaluation packages required by the DOE requirements specified in the Functional Area Implementation Requirements are maintained; and (4) a summary of the Changes is provided to DOE annually for review. | ||
C. | For proposed Changes which involve an Unreviewed Safety Question or a Change in the Authorization Basis or a Technical Requirement, the Corporation shall obtain DOE review and approval before implementing the proposed Change. |
D. | In reviewing the proposed modification of any specific Functional Area Implementation Requirements, the DOE Regulatory Oversight Manager will, whenever possible, attempt to facilitate the transition to compliance with the regulatory standards and requirements likely to be imposed on the GCEP Leased Premises by the NRC, if applicable. |
5. | The enforcement procedures available to DOE in the event that the Corporation fails to comply with the Functional Area Implementation Requirements are attached hereto, and incorporated by reference herein as Appendix B. |
To DOE: | Larry W. Clark | |
Assistant Manager for Nuclear Fuel Supply | ||
U. S. Department of Energy | ||
Oak Ridge Operations P. O. Box 2001 | ||
Oak Ridge, Tennessee 37831 | ||
To USEC: | Victor N. Lopiano | |
United States Enrichment Corporation | ||
Two Democracy Center | ||
6903 Rockledge Drive | ||
Bethesda, Maryland 20817 |
AND | ||
Terms and Definitions | ||||||||
I. | Introduction | 1 | ||||||
II. | Functional Areas | 2 | ||||||
1.0 | Organization Plan | 3 | ||||||
1.1 | Objective | 3 | ||||||
1.2 | Implementation Requirements | 3 | ||||||
2.0 | Management Controls and Oversight | 4 | ||||||
2.1 | Objective | 4 | ||||||
2.2 | Implementation Requirements | 4 | ||||||
3.0 | Operations | 4 | ||||||
3.1 | Objective | 4 | ||||||
3.2 | Implementation Requirements | 4 | ||||||
4.0 | Engineering/Construction | 5 | ||||||
4.1 | Objective | 5 | ||||||
4.2 | Implementation Requirements | 6 | ||||||
5.0 | Training and Qualification | 6 | ||||||
5.1 | Objective | 6 | ||||||
5.2 | Implementation Requirements | 6 | ||||||
6.0 | Quality Assurance | 7 | ||||||
6.1 | Objective | 7 | ||||||
6.2 | Implementation Requirements | |||||||
7.0 | Maintenance | 8 | ||||||
7.1 | Objective | 8 | ||||||
7.2 | Implementation Requirements | 8 | ||||||
8.0 | Radiation | Protection | 8 | |||||
8.1 | Objective | 8 | ||||||
8.2 | Implementation Requirements | 9 | ||||||
9.0 | Nuclear Criticality Safety | 11 | ||||||
9.1 | Objective | 11 | ||||||
9.2 | Implementation Requirements | 11 | ||||||
10.0 | Fire Protection | 12 | ||||||
10.1 | Objective | 12 | ||||||
10.2 | Implementation Requirements | 14 | ||||||
11.0 | Environmental Protection | 16 | ||||||
11.1 | Objective | 16 | ||||||
11.2 | Implementation Requirements | 16 | ||||||
12.0 | Nuclear Material Safeguards | 17 | ||||||
12.1 | Objective | 17 | ||||||
12.2 | Implementation Requirements | 17 | ||||||
13.0 | Emergency Preparedness | 18 | ||||||
13.1 | Objective | 18 | ||||||
13.2 | Implementation Requirements | 18 | ||||||
14.0 | Waste Management | 19 | ||||||
14.1 | Objective | 19 |
14.2 | Implementation Requirements | 19 | ||||||
15.0 | Safety Analysis | 20 | ||||||
15.1 | Objective | 20 | ||||||
15.2 | Implementation Requirements | 20 | ||||||
16.0 | Security | 20 | ||||||
16.1 | Objective | 21 | ||||||
16.2 | Implementation Requirements | 21 | ||||||
17.0 | Chemical Safety | 24 | ||||||
17.1 | Objective | 24 | ||||||
17.2 | Implementation Requirements | 24 | ||||||
18.0 | Packaging and Transportation | 25 | ||||||
18.1 | Objective | 25 | ||||||
18.2 | Implementation Requirements | 25 |
I. | INTRODUCTION | |
The U. S. Department of Energy (DOE) will exercise regulatory oversight and enforcement pursuant to 10 CFR Part 820, 10 CFR Part 824, and this Regulatory Oversight Agreement (ROA) for activities undertaken by the Corporation in removing material and equipment from the Gas Centrifuge Enrichment Plant (GCEP) Leased Premises at the Portsmouth Gaseous Diffusion Plant (Portsmouth GDP) site in Piketon, Ohio. In addition, DOE will exercise regulatory oversight for the gas centrifuge activities of the Corporation not regulated by the U. S. Nuclear Regulatory Commission (NRC). The transition of regulatory responsibility from the DOE to NRC will be documented in a Memorandum of Understanding (MOU). | ||
DOE will exercise its oversight authority both by contract (lease) and by DOE regulations. Under the requirements of this GCEP ROA, DOE will provide contractual requirements for health and safety and common defense and security. The enforcement process identified in Appendix B of this exhibit will apply to any ROA violations of the GCEP ROA contract (lease) requirements. | ||
DOE regulations for nuclear safety management, including quality assurance, are found in 10 CFR Part 830 and “DOE Nuclear Safety Requirements” for worker radiation protection in 10 CFR Part 835. USEC requested and has been granted an exemption to the requirements of 10 CFR Parts 830 and 835. As such, the Corporation shall perform the gas centrifuge activities related to quality assurance and worker radiation protection, not under the regulation of NRC, in accordance with the conditions specified in the 10 CFR Part 830 and 10 CFR Part 835 Exemption Decisions dated February 2, 2004, as amended, and February 3, 2004, as amended, respectively and as established in this ROA. The enforcement procedures of 10 CFR Part 820, Appendix A and relevant OPAE Enforcement Guidance Supplements will apply to any potential violations related to the requirements of the 10 CFR Parts 830 and 835 exemptions. The enforcement process of 10 CFR Part 824 will apply to any potential violations related to Classified Information. | ||
USEC has the responsibility for protection of health and safety and provision of adequate safeguards and security for all activities performed by USEC or its contractors in connection with the removal of equipment and material from the GCEP Leased Premises. NRC programs reviewed and approved in accordance with 10 CFR Part 76, contained in the Certification Application, satisfy the requirements of the GCEP ROA for protection of health and safety. USEC Inc. has responsibility for protection of health and safety and provision of adequate safeguards and security for all activities performed by USEC Inc., or its contractors in connection with any refurbishment/construction for the Lead Cascade and pre-construction activities in the subleased GCEP facilities and the installation of equipment for the American Centrifuge Plant (“ACP”). DOE will have regulatory oversight of health, safety and safeguards and security at the GCEP Leased Premises and/or activity, unless the NRC assumes regulation. DOE regulatory oversight of the GCEP includes serving as the cognizant security agency for USEC Inc.’s subcontractor/vendor/partner facilities performing work related to the American Centrifuge Program. | ||
Unless NRC assumes regulation of the GCEP Leased Premises and/or activity, the DOE Regulatory Oversight Manager will oversee regulation of the gas centrifuge facilities for those applicable requirements of this ROA. The DOE OPAE will conduct any |
investigations of potential regulatory violations of the 10 CFR Parts 830 and 835 exemption requirements. OPAE will, if applicable, issue enforcement actions in accordance with OPAE’s statutory authority, policies, and processes. The DOE Regulatory Oversight Manager will work with and provide support in the implementation of OPAE’s enforcement program. | ||
USEC Inc. will be developing programs and documentation as required by the License Application during the time that the equipment removal, refurbishment/construction of the Lead Cascade, and any pre-construction activities are occurring in preparation for the construction and operation of the ACP. These will be used by USEC Inc., to meet the requirements of 10 CFR Part 70 and the License Application. These satisfy the requirements of the GCEP ROA for protection of health and safety, with the exception of safeguards and safety. A transition from DOE to NRC regulation will occur prior to the commencement of construction of the ACP, unless specific activities in specific facilities warrant remaining under DOE regulatory oversight for an additional period of time. In this case, the facility would transition to NRC regulation on a mutually agreed to schedule. | ||
In preparing the GCEP Leased Premises for deployment of the gas centrifuge technology prior to NRC regulation, DOE will regulate these activities pursuant to this GCEP ROA. This document defines the set of safety and safeguards and security requirements which will protect public and worker health and safety and assure adequate safeguards and security for the activities to be undertaken by the Corporation that are subject to DOE regulatory oversight at the GCEP Premises leased by DOE to the Corporation in support of deployment of the centrifuge technology at the GCEP Leased Premises. These requirements and the implementation of these requirements form the basis of DOE regulatory oversight and will result in safe activities in the GCEP Leased Premises. As appropriate, the source document for the objective and/or the implementation requirement has been provided. Only the objective and/or the implementation requirement included from the source document is a requirement of the GCEP ROA. | ||
II. | FUNCTIONAL AREAS | |
This section describes the envelope of operating requirements that are required and considered necessary to protect the health and safety of the public and facility workers and safeguards and security. Reviews by DOE subject matter experts have confirmed that implementation of these requirements will contribute to the safety of activities in support of the GCEP Leased Premises. The safety and safeguards and security requirements have been defined for eighteen topical areas. The objective of each of the eighteen topical areas is provided followed by a set of Implementation Requirements defining actions necessary to satisfy the objective. |
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1.0 | ORGANIZATION PLAN |
1.1 | Objective |
1.2 | Implementation Requirements |
1.2.1 | Activities conducted in the GCEP Leased Premises shall have current plans, procedures or other appropriate documentation, which clearly define authority, responsibility, and accountability for safe operations. The current plans, procedures, or appropriate documentation shall contain the following elements: |
1.2.1.1 | Authority for safety clearly defined for each position of responsibility. | ||
1.2.1.2 | Responsibility for safety clearly delineated in each position description and in each “roles and responsibility” document. | ||
1.2.1.3 | Programs and procedures will be established for the following functions (if applicable to the activities subject to DOE regulatory oversight): |
1.2.1.3.1 | nuclear safety design | ||
1.2.1.3.2 | nuclear criticality safety | ||
1.2.1.3.3 | fire protection | ||
1.2.1.3.4 | natural phenomena hazards mitigation | ||
1.2.1.3.5 | safeguards and security | ||
1.2.1.3.6 | personnel selection and training program | ||
1.2.1.3.7 | quality assurance | ||
1.2.1.3.8 | radiation protection | ||
1.2.1.3.9 | preparation of safety documentation |
1.2.2 | Quality assurance, radiation protection, and preparation of safety documentation (e.g., safety evaluations) activities shall be independent of equipment removal, installation, and refurbishment activities. | ||
1.2.3 | All personnel shall have the authority to halt unsafe activities. |
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2.0 | MANAGEMENT CONTROLS AND OVERSIGHT |
2.1 | Objective |
2.2 | Implementation Requirements |
2.2.1 | Procedures and documents important to Safety and Health and Safeguards and Security shall be developed, revised, reviewed, approved, distributed, and implemented in accordance with identified, written requirements and authorizations. | ||
2.2.2 | An internal and independent safety review process shall be established and maintained. | ||
2.2.3 | Occurrences shall be reported and investigations conducted on events that could affect the health and safety of the public or endanger the health and safety of workers. | ||
2.2.4 | A commitment tracking system shall be maintained to monitor the status of formal commitments to improve safety and safeguards and security. | ||
2.2.5 | Administrative controls shall provide standard methods and requirements for creating, collecting, maintaining, and disposing of records related to nuclear safety and safeguards and security. | ||
2.2.6 | Management shall develop and implement a formal, organized process whereby people plan, perform, assess, and improve the safe conduct of work. |
3.0 | OPERATIONS |
3.1 | Objective |
3.2 | Implementation Requirements |
3.2.1 | Material possession limits and operating bounds for safety systems as established by the Authorization Basis documents shall be observed. |
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3.2.2 | Surveillance requirements, as established in the Authorization Basis, shall be conducted as specified. Additional tests to verify proper operation of systems and integrity of confinement structures shall be conducted after significant maintenance/modifications as specified in any post-maintenance/modification testing procedures. | ||
3.2.3 | Procedures or work instructions shall be prepared to facilitate initial and periodic tests of safety features and/or systems to ensure it operates and meets design objectives. | ||
3.2.4 | Prior to or during any type of activity, management shall assess equipment and personnel performance through a program of monitoring and facility walk downs. | ||
3.2.5 | Turnovers conducted for selected shift stations shall ensure the effective and accurate transfer of information between shift personnel. | ||
3.2.6 | Management shall ensure that proposed changes to facilities and activities subject to DOE regulatory oversight outside the approved Authorization Basis are not implemented without the prior approval of DOE. Proposed changes which may affect the operation of the Lead Cascade or ACP will be subject to NRC requirements. | ||
3.2.7 | Management shall ensure that “As Found” conditions outside the approved Authorization Basis are reported to DOE. Appropriate engineering reviews and safety assessments will be performed and submitted to DOE for review and approval. “As Found” conditions outside of the Authorization Basis for operation of the GCEP Leased Premises under the NRC license will be addressed in accordance with NRC requirements. |
4.0 | ENGINEERING/CONSTRUCTION |
4.1 | Objective |
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4.2 | Implementation Requirements |
4.2.1 | Procedures and controls shall be established under a graded approach to ensure appropriate reviews of the following: |
4.2.1.1 | Each change to procedures or equipment design impacting safety systems to ensure the adequacy of configuration control, radiation protection, criticality systems, safety and health, and safeguards and security considerations and to maintain appropriate limits. | ||
4.2.1.2 | Each procurement document for safety systems to ensure that it contains appropriate information on established radiological safety requirements and to ensure that vendors shall supply equipment that will perform under expected service conditions. | ||
4.2.1.3 | Reviews will be done for those activities, which have the potential to impact worker safety. | ||
4.2.1.4 | Listings of all changes to facility and equipment safety systems evaluated using engineering reviews and safety assessments and the configuration change control process shall be maintained for each calendar year. Appropriate documentation shall be made available for DOE regulatory review in a timely manner, if requested |
4.2.2 | Controls for radiation protection shall implement physical design features to minimize radiological exposure to As Low As Reasonably Achievable (ALARA). | ||
4.2.3 | Engineering reviews of proposed changes to activities subject to DOE regulatory oversight which involve an unreviewed safety question are submitted to DOE in a timely manner for review and approval prior to implementation. |
5.0 | TRAINING AND QUALIFICATION |
5.1 | Objective |
5.2 | Implementing Requirements |
5.2.1 | Each Corporation manager shall define the required training needs and assure completion of training of their subordinates consistent with their job. |
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5.2.2 | Corporation personnel and visitors or contractors shall successfully complete General Employee Training (GET) and any specific training in the areas listed below before they are granted unescorted access to controlled areas. |
5.2.2.1 | Radiological, criticality, chemical and industrial safety hazards and rules; | ||
5.2.2.2 | Emergency Preparedness; and | ||
5.2.2.3 | Safeguards and security. |
5.2.3 | Corporation personnel shall successfully complete radiation protection training before they are granted unescorted access to radiological areas. | ||
5.2.4 | Corporation personnel shall successfully complete applicable training for the safety aspects associated with the activities to be performed. | ||
5.2.5 | Corporation personnel shall successfully complete safeguards and security training, retraining and re-qualification at established intervals. | ||
5.2.6 | Training requirements shall be defined and listed on the applicable Training Requirements Matrices (TRMs). Training shall be provided to supervisors and managers with respect to their responsibilities in the areas of safety, health and safeguards and security. | ||
5.2.7 | Selection and qualification of quality assurance personnel involved in inspection, tests, independent assessments, and audits shall meet the requirements specified in the Quality Assurance Program (QAP). |
6.0 | QUALITY ASSURANCE |
6.1 | Objective |
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7.0 | MAINTENANCE |
7.1 | Objective |
7.2 | Implementation Requirements |
7.2.1 | A graded corrective and preventive maintenance program shall be implemented to ensure that timely maintenance is performed on safety systems and safeguards and security equipment. | ||
7.2.2 | A graded instrument calibration program, employing standards traceable to the national standards system or to nationally accepted standards, shall be implemented for the calibration of equipment and monitoring devices necessary for the proper maintenance and operation of safety systems and safeguards equipment. |
8.0 | RADIATION PROTECTION |
8.1 | Objective |
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8.2 | Implementation Requirements |
8.2.1 | A radiation control program that defines steps to be taken to limit exposure of workers and the public shall be established. | ||
8.2.2 | Line management shall ensure that radiological activities are conducted in accordance with radiation protection instructions and procedures. | ||
8.2.3 | Radiation protection personnel, independent of organizations responsible for equipment removal or installation, shall be provided to guide and assist line managers in fulfilling their radiation protection responsibilities. | ||
8.2.4 | A radiation protection manager shall be provided to advise and consult with line managers and to guide the radiation protection activities. | ||
8.2.5 | Instructions concerning all the activities of radiation protection technicians shall be provided. Radiation protection procedures for the control and use of radioactive materials and radiation- generating devices shall provide for safe operations. | ||
8.2.6 | A formally structured, auditable ALARA program with established milestones to ensure that exposures are maintained at ALARA levels shall be in place. | ||
8.2.7 | A respiratory protection program to limit the intake of airborne radioactive materials and to protect employees from potentially hazardous atmospheres shall be established. | ||
8.2.8 | A bioassay system shall be established that will evaluate Committed Effective Dose Equivalents (CEDE) to personnel who are occupationally exposed to radiation with the likelihood to receive an exposure of 100 mrem or greater. | ||
8.2.9 | Engineering and administrative controls and personal protective equipment shall be used to control the exposure of employees to internal radiation sources; occupational exposures shall be evaluated and recorded when the potential exposure could exceed 2% of the regulatory limit in a year. | ||
8.2.10 | Employee exposure to external radiation sources shall be controlled using postings, interlock systems, monitoring, shielding, and surveys. Occupational exposures shall be evaluated and recorded when the |
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potential exposure could exceed 2% of the annual limit for effective dose equivalent in a year. Exposure of extremities and the skin shall be evaluated as appropriate. |
8.2.11 | Radiation areas, high radiation areas, very high radiation areas, contamination areas, high contamination areas, airborne radioactivity areas, and radioactive materials (storage) areas shall be prominently and distinctly marked to preclude inadvertent or unknowing entry by employees, visitors, and contractors. | ||
8.2.12 | Plant alarms to alert personnel in and around facilities of emergency conditions or impending hazards shall be provided. | ||
8.2.13 | The radiation monitoring and contamination control program shall ensure worker protection from radiation exposures. Sources of radioactive contamination shall be controlled at the source and steps shall be taken to limit the extent of contamination. The extent of contaminated areas shall be limited by vigorous decontamination efforts. | ||
8.2.14 | Airborne radioactive materials, surface contamination, and external radiation exposures shall be monitored and surveyed to assure that employee internal accumulations of radioactive materials can be routinely estimated and to ensure that exposures are at ALARA levels. | ||
8.2.15 | Personnel dosimetry shall be used and maintained so that results will be accurately determined. | ||
8.2.16 | A formal inventory program to account for nonexempt by-product material sources and to provide for their control, movement, and leak testing shall be maintained. | ||
8.2.17 | Provisions shall be made to provide for oversight of radiation protection programs. The audit program for both routine operations and unusual radiological occurrences shall provide for adequate assessment of performance. | ||
8.2.18 | A Radiation Work Permit (RWP) system to ensure that radiation exposure and contamination controls are applied to all activities involving entry into radiation, airborne radioactivity, and contamination areas and to other work areas with radioactive materials, shall be established. | ||
8.2.19 | Radiation protection instructions to workers such as RWPs shall be |
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available for review at the entry of the work area to which they apply. | |||
8.2.20 | Radiation measuring instruments used to evaluate hazards or define employee exposure shall be subject to periodically scheduled maintenance and calibration in accordance with approved procedures; the sources of radiation used to calibrate these instruments will be National Institute of Standards and Technology (NIST) traceable. | ||
8.2.21 | Employees shall be provided with an annual report of their occupational exposure history and visitors shall be provided with information with respect to their exposure. Summary exposure information shall be reported annually. | ||
8.2.22 | Records related to occupational radiation exposure shall be maintained in a manner that permits easy recovery of the data, allows for trend analysis, and aids in the protection of the individual and the control of radiation exposure. | ||
8.2.23 | In addition to radiological protection, an occupational health program shall be established to oversee, promote, and protect the radiological and non-radiological health of plant personnel. |
9.0 | NUCLEAR CRITICALITY SAFETY |
9.1 | Objective |
9.2 | Implementation Requirements |
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9.2.1 | The GCEP Leased Facilities have been previously used for enrichment processing with centrifuge machines. Residual contamination of process equipment is present that could have NCS Implications, where enrichment exceeded 1 percent U235. Therefore, a two-part approach is required to be implemented. First, NCSEs/As and controls (if any) must be maintained during the equipment removal phase to ensure that possible criticality contingencies are controlled. Second, the activities subject to DOE regulatory oversight must be evaluated through an NCS program to provide engineering and administrative controls to demonstrate the safety of the proposed activities. The requirements are: |
9.2.1.1 | Develop an NCS Program that ensures activities with fissionable material remain sub-critical under all normal and credible abnormal conditions. | ||
9.2.1.2 | NCSEs/As shall be performed and/or maintained consistent with the requirements of the NCS Program. | ||
9.2.1.3 | Nuclear Critical Accident Alarm System meeting the requirements of ANS 8.3 shall be provided if required by the NCS Program for coverage of areas involving credible criticality accidents. | ||
9.2.1.4 | Technical Requirements or equivalent (if required) shall specify actions to be taken in the event of an inoperable Nuclear Criticality Accident Alarm System. |
10.0 | FIRE PROTECTION |
10.1 | Basic Objective | ||
The Fire Protection Program shall ensure that no undue threats to the public or employees will result from fire and resultant perils. | |||
The fire protection program will comply with the following standards for modifications to the GCEP Leased Premises that affects the fire protection system: DOE O 420.1A, Section 4.2, Fire Protection, NFPA 10-1990, Portable Fire Extinguishers, NFPA 13-1989, Standard for the Installation of Sprinkler Systems; NFPA 15-1990, Water Spray Systems; NFPA 24-1992, Private Fire Service Mains; and NFPA 30-1990, Flammable Liquids. Any deviations found during future modifications will be documented and justified by the Authority Having Jurisdiction (AHJ) or corrective action will be taken. |
10.1.1 | The fire protection program shall have the following features: |
10.1.1.1 | A policy statement that incorporates the requirements of this section, related DOE directives, and other applicable |
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Federal, state, and local fire protection requirements. The statement shall affirm management’s commitment to support a level of fire protection and fire suppression capability sufficient to minimize losses from fire and related hazards consistent with the best class of protected property in private industry. | |||
10.1.1.2 | Comprehensive, written fire protection criteria that reflect additional site-specific aspects of the fire protection program, including the organization, training, and responsibilities of the fire protection staff, administrative aspects of the fire protection program, and requirements for the design, installation, operability, inspection, maintenance, and testing of fire protection systems. | ||
10.1.1.3 | Written fire safety procedures governing the use and storage of combustible, flammable, radioactive, and hazardous materials so as to minimize the risk from fire. Such procedures shall also exist for fire protection system impairments and for activities such as smoking, hot work, safe operation of process equipment, and other fire prevention measures which contribute to the decrease in fire risk. | ||
10.1.1.4 | A system to ensure that the requirements of the DOE fire protection program are documented and incorporated in the plans and specifications for all new facilities and for significant modifications of existing facilities. This includes a documented review by a qualified fire protection engineer of plans, specifications, procedures, and acceptance test. | ||
10.1.1.5 | Fire hazard analyses (FHAs) or equivalent1 shall be developed for all nuclear facilities, significant new facilities, and facilities that represent unique or significant fire safety risks. The FHA shall be developed using a graded approach. The conclusions of the FHA shall be incorporated in the Facility Accident Analysis and shall be integrated into design basis and beyond design basis accident conditions. | ||
10.1.1.6 | Access to a qualified and trained fire protection staff, including a fire protection engineer(s), technicians, and fire fighting personnel to implement the fire protection requirements. |
1 | “or equivalent” will require a submittal of documentation of equivalency by USEC and approval by DOE. |
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10.1.1.7 | A “baseline” needs assessment or equivalent2 that establishes the minimum required capabilities of site fire fighting forces. This includes minimum staffing, apparatus, facilities, equipment, training, fire pre-plans, off-site assistance requirements, and procedures. Information from this assessment shall be incorporated into the site Emergency Plan. | ||
10.1.1.8 | Written pre-fire strategies, plans, and standard operating procedures to enhance the effectiveness of site fire fighting forces, where provided. Such procedures shall include those governing the use of fire fighting water or other neutron moderating materials to suppress fire within or adjacent to moderation controlled areas. Restrictions on the use of water shall be fully justified on the basis of criticality safety. | ||
10.1.1.9 | A comprehensive, documented fire protection self-assessment program, which includes all aspects (program and facility) of the fire protection program. Assessments shall be performed on a regular basis at an established frequency. | ||
10.1.1.10 | A program to identify, prioritize, and monitor the status of fire protection-related appraisal findings/recommendations until final resolution is achieved. When final resolution will be significantly delayed, appropriate interim compensatory measures shall be implemented to minimize the fire risk. | ||
10.1.1.11 | A process for reviewing and recommending approval of fire safety “equivalencies” and “exemptions” to the AHJ for fire safety. |
10.2 | Implementation Requirements |
10.2.1 | The Fire Protection Program shall be under the direction of an individual who has been assigned as AHJ commensurate with the responsibilities of the position. | ||
10.2.2 | Fixed fire suppression systems, where provided, shall be tested and maintained such that fires in those areas are controlled promptly. | ||
10.2.3 | Automatic fire suppression systems shall be provided for areas containing |
2 | “or equivalent” will require a submittal of documentation of equivalency by USEC and approval by DOE |
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safety systems and for all areas subject to significant life safety hazards. | |||
10.2.4 | A reliable water supply, with sectional isolation valves shall be maintained. | ||
10.2.5 | Closing of valves supplying fire suppression systems shall be controlled by a written permit system. | ||
10.2.6 | A fire department shall be maintained as an acceptable means of redundant fire protection. | ||
10.2.7 | Fire Department personnel shall be available at all times and shall be trained and equipped to handle anticipated types of fires and other emergencies. | ||
10.2.8 | Mobile fire apparatus that is required to support fire-fighting operations shall be provided and maintained. | ||
10.2.9 | Breathing air used in fire fighting shall meet a minimum quality of Grade D. | ||
10.2.10 | On-site fire protection support shall be available to evaluate the fire hazards of changes to maintenance and process systems. | ||
10.2.11 | A fire protection review of design documents for new facilities and for modifications to existing facilities shall be made to insure that fire protection issues have been properly addressed. | ||
10.2.12 | Fire protection appraisals of important buildings shall be conducted periodically to identify changes that adversely impact existing fire protection levels. Means of emergency egress shall be regularly inspected for all areas that are normally occupied. Personnel who are trained and knowledgeable in detecting fire hazards shall conduct periodic inspections of all important buildings and other structures. | ||
10.2.13 | All fires shall be investigated and root causes determined. | ||
10.2.14 | Portable fire extinguishers shall be available throughout the plant commensurate with the hazard. | ||
10.2.15 | A fire alarm system that reports to a continuously manned location shall monitor fire alarms in all important buildings and structures. | ||
10.2.16 | Welding/burning/hot work shall be controlled by a written permit system to minimize the fire hazards of open flame equipment. | ||
10.2.17 | Emergency medical services shall be provided to assure proper emergency care of injured employees. |
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10.2.18 | Noncombustible or fire-resistive construction shall be utilized, where appropriate. Also, complete fire-rated barriers that are commensurate with the fire hazard to isolate hazardous occupancies and to minimize spread shall be utilized, as required. | ||
10.2.19 | A means to notify and evacuate building occupants in the event of a fire, such as a fire detection or fire alarm system and illuminated, protected egress paths shall be provided. | ||
10.2.20 | Physical access and appropriate equipment to facilitate effective intervention by the fire department, such as an interior standpipe system(s) in multi-story or large facilities with complex configurations, shall be provided. | ||
10.2.21 | A means to prevent the accidental release of significant quantities of contaminated products of combustion and fire fighting water to the environment, such as ventilation control and filter systems and curbs and dikes, or equivalent3 shall be provided. Such features would only be necessary if required by the FHA or safety analysis in conjunction with other facility or site environmental protection measures. | ||
10.2.22 | Fire and related hazards that are unique to GCEP and are not addressed by industry codes and standards shall be protected by isolation, segregation, or use of special fire control systems, such as inert gas or explosion suppression, as determined by the FHA, shall be provided. | ||
10.2.23 | Fire protection systems shall be designed such that their inadvertent operation, inactivation, or failure of structural stability will not result in the loss of vital safety functions or inoperability of safety class systems as determined by the safety analysis. |
11.0 | ENVIRONMENTAL PROTECTION |
11.1 | Objective |
11.2 | Implementation Requirements |
3 | “or equivalent” will require a submittal of documentation of equivalency by USEC and approval by DOE. |
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11.2.1 | A mitigation/spill prevention, control and countermeasures program shall be maintained to prevent releases to the environment. | ||
11.2.2 | Environmental monitoring shall be implemented if required by applicable regulations or permits. The monitoring will determine the effects, weather impacts, and personnel exposure and collect required sampling and analysis data relative to releases to the environment of hazardous effluents. | ||
11.2.3 | Monitoring data, including data, for emergency reporting where regulatory limits are exceeded will be collected and reported as required under applicable regulations and permits. |
12.0 | NUCLEAR MATERIAL SAFEGUARDS |
12.1 | Objective |
12.2 | Implementation Requirements |
12.2.1 | Written plans and procedures that identify the strategies, mechanisms, and commitments to protect NM from unauthorized removal, to account for NM, to prevent unlicensed enrichment of nuclear material to special nuclear material; and to protect NM facilities against radiological sabotage. | ||
12.2.2 | A system for tracking, accounting for, and reporting to the Nuclear Materials Management System and Safeguards (NMMSS), all reportable quantities of nuclear material. | ||
12.2.3 | A measurement control program, providing for the degree of measurement control for ensuring that equipment used to measure nuclear materials is properly calibrated using standards traceable to national standards and for supporting the estimation of the contribution of measurement certainty to inventory difference. | ||
12.2.4 | If applicable, physical barriers, vaults, intrusion detection systems, and |
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access controls designed to protect NM from access by unauthorized personnel or from unauthorized removal. |
12.2.5 | A system of independent audits and assessments to verify the effectiveness of the elements of the Nuclear Material Control & Accountability (NMC&A) program, including measurement controls, material controls, and accounting systems. | ||
12.2.6 | A system of performance testing to verify the effectiveness of the nuclear materials protection program, as required. | ||
12.2.7 | Written Plans and procedures to ensure implementation of Voluntary agreements and the Additional Protocol between the United States of America and the International Atomic Energy Agency while protecting site safeguards and security interests. |
13.0 | EMERGENCY PREPAREDNESS |
13.1 | Objective |
13.2 | Implementation Requirements |
13.2.1 | An individual shall be designated responsibility for implementation of the Emergency Management Program at PORTS as it pertains to the Corporation Lead Cascade/ACP and clean-up activities. Responsibilities of any project individuals supporting the PORTS Emergency Preparedness Program shall be clearly defined. | ||
13.2.2 | A hazards assessment shall be developed and maintained for use in emergency planning. This assessment shall consider the broad spectrum of events that could affect the facilities and be used in the development of the Emergency Management Plan. | ||
13.2.3 | An Emergency Management Plan shall be developed and maintained as a controlled document. The Emergency Management Plan and its associated support documents shall be reviewed annually and updated as necessary. | ||
13.2.4 | In coordination with the DOE site personnel, provisions shall be made for recovery from an emergency in the GCEP Leased Premises and re-entry into the buildings. These provisions shall include specific procedures for |
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termination of an emergency, dissemination of information, establishment of a recovery team, and criteria for resumption of activities in support of the Lead Cascade/ACP. |
13.2.5 | In coordination with the DOE site personnel, training for any project emergency response individuals on their duties in the emergency response plan shall be identified and maintained on an established schedule. | ||
13.2.6 | Project emergency response individuals shall participate in site emergency response exercises, as requested. |
14.0 | WASTE MANAGEMENT |
14.1 | Objective |
14.2 | Implementation Requirements |
14.2.1 | The safety and health of the public shall be protected by managing activities in support of the Lead Cascade/ACP, clean-up, and related operations in a manner that provides for the safe handling, transportation, and storage of hazardous, radioactive, or mixed wastes generated. This is accomplished by managing hazardous, radioactive, or mixed wastes according to the requirements of the Atomic Energy Act (AEA) and applicable state requirements. | ||
14.2.2 | A Waste Minimization Program shall be implemented to segregate, substitute, and minimize the amount of waste requiring disposal. | ||
14.2.3 | All hazardous, radioactive, and mixed wastes shall be characterized with sufficient accuracy to permit segregation, handling, and transfer to |
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treatment, storage, or disposal facilities (TSD). Additional characterization needed to ensure the actual physical and radiological characteristics meet the waste acceptance criteria (WAC) of an off-site TSD facility shall be performed prior to shipment to an offsite TSD facility. |
14.2.4 | An operating record-keeping system shall be developed and maintained to document the following: (1) a historical record of waste generated, treated, stored, shipped, and/or disposed of; (2) data necessary to show that the waste was properly classified, treated, stored, shipped, and/or disposed of; and (3) waste manifests. | ||
14.2.5 | A program will be in place to inspect off-site treatment storage and disposal facilities and practices. |
15.0 | SAFETY ANALYSIS |
15.1 | Objective |
15.2 | Implementation Requirements |
15.2.1 | Determine the facility preliminary classification by maximum quantity of nuclear material included in the design. | ||
15.2.2 | Perform hazards evaluation, accident analysis, and determine controls and document. The design must provide for adequate protection against natural phenomena with consideration of the most severe documented historical events for the site. (10 CFR 70.64) | ||
15.2.3 | Establish an unreviewed safety question evaluation process or equivalent to prevent inadvertent change to documented safety analysis or any of its basis or conclusions. | ||
15.2.4 | Document controls from the safety analysis in technical safety requirements or equivalent. | ||
15.2.5 | Conduct activities consistent with procedures and /or work instructions, as required by the Quality Assurance Program. |
16.0 | SECURITY |
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16.1 | Objective |
16.2 | Implementation Requirements |
16.2.1 | Measures to ensure effective management and implementation of the security plans shall be developed and implemented. These include: |
16.2.1.1 | Documented security plans: DOE O 470.4, and DOE M470.4-2, Chg 1. | ||
16.2.1.2 | Utilization of a protective force as appropriate, the armed, uniformed members of which are trained and qualified under a DOE certified program: DOE/USEC Arming and Arrest Authority Security Plan, as amended. | ||
16.2.1.3 | Conformance to measures to control the issuance and use of security badges, credentials, and shields: DOE O 470.4-2, Chg 1. | ||
16.2.1.4 | Program of security systems performance testing: DOE O 470.4 and DOE O 473.2. Program for the inquiry and reporting to DOE of incidents of security concern: DOE O 470.4. | ||
16.2.1.5 | Changes to the GCEP leased premises/equipment that could directly/indirectly affect Safeguards and Security shall require a Decreased Effectiveness Evaluation (DEE) of the affected security plan(s). Safeguards and security plan changes shall be evaluated to ensure that the personnel safety is unaffected. |
16.2.2 | Documented measures to protect classified information and materials from loss or unauthorized disclosure shall be developed and implemented. These include: |
16.2.2.1 | Programs for facility clearances and registration of safeguards and security activities. (DOE O 470.4) |
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16.2.2.2 | Program ensuring timely submittal of information for Foreign Ownership, Control or Influence (FOCI) determinations. (DOE O 470.4) | ||
16.2.2.3 | Measures to identify classified information: DOE O 200.1, DOE M 475.1-1A. | ||
16.2.2.4 | Controls of classified documents and information: DOE M 470.4-4. | ||
16.2.2.5 | Physical protection measures for classified information and material: DOE M 470.4-4. | ||
16.2.2.6 | Controls for hand carrying of classified matter on air carriers: DOE M 470.4-4. | ||
16.2.2.7 | Personnel security program to limit access to classified information and materials to appropriately cleared individuals with a need to know: DOE M 470.4-5, DOE M 472.1-1B. | ||
16.2.2.8 | Security education and awareness program: DOE O 470.4. | ||
16.2.2.9 | Communications security program: DOE O 200.1, DOE M 200.1-1, DOE G 200.1-1. | ||
16.2.2.10 | Classified computer security program: DOE M 470.4-4, DOE M 471.2-2. | ||
16.2.2.11 | Controls on classified visits: DOE O 470.4. | ||
16.2.2.12 | Technical surveillance countermeasures program: DOE M 470.4-4 and DOE TSCM Procedural Manual. |
16.2.3 | Documented measures to protect unclassified sensitive information and materials from loss or unauthorized disclosure shall be developed and implemented. These include: |
16.2.3.1 | Operations security program: DOE M 470.4-4. | ||
16.2.3.2 | Information security program: DOE M 470.4-4. | ||
16.2.3.3 | Counterintelligence program, provided by the Oak Ridge Office of Counterintelligence: DOE O 475.1. | ||
16.2.3.4 | Guidelines on Export Control and Nonproliferation, July 1999, U.S. Department of Energy. |
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16.2.3.5 | Measures to identify, control, and protect unclassified controlled nuclear information (UCNI): DOE O 471.1A, DOE M 471.1-1, Chg 1. | ||
16.2.3.6 | The Corporation will submit an unclassified computer security plan for DOE’s approval. Upon approval, this plan will represent the unclassified computer security standards to which the Corporation will conform (DOE O 205.1, DOE N 205.2, DOE P 205.1, DOE N 205.3, DOE N 205.8, DOE N 205.9, DOE G 205.1-1, DOE M 205.1.1). | ||
16.2.3.7 | Program to control unclassified visits and assignments by foreign nationals: DOE O 142.3. | ||
16.2.3.8 | Measures to identify, control, and protect Official Use Only (OUO) information, as appropriate: DOE O 471.3, DOE G 471.3-1, DOE M 471.3-1. |
16.2.4 | A documented program shall be implemented to ensure that those individuals requiring a DOE-issued Weapons Authorization Card have met the necessary requirements for a Security Police Officer.4 The program for issuance of Weapons Authorization Cards shall include the following elements: |
16.2.4.1 | A documented program providing the level of information mandated by the Code of Federal Regulations and DOE Orders and Directives for the issuance of Weapons Authorization Cards. (10 CFR 1046, 10 CFR 1047, DOE O 473.2, DOE M 470.4-3, Chg 1)5 | ||
16.2.4.2 | A documented program for medical, physical fitness training, and firearms that certifies each individual for a Weapons Authorization Card. (10 CFR 1046.12, 10 CFR 1046.13, 10 CFR 1046.16, DOE O 473.2, DOE M 470.4-3, Chg 1) | ||
16.2.4.3 | Access authorization commensurate with the level of classified matter access. (10 CFR 1046.14, DOE O 473.2, DOE M 470.4-3, Chg 1) |
4 | Within 60 days after issuance of any new DOE orders addressing DOE security interest at Portsmouth, the DOE Regulatory Oversight Manager will inform USEC of the issuance of the new order(s). This notification shall be considered to be a modification the Regulatory Oversight Agreement (ROA). USEC shall come into compliance with such modifications to the ROA within the time specified and directed by DOE. | |
5 | The citation of specific DOE orders in Section 16.2.1 is applicable to the date of this revision to the ROA. Compliance with current DOE orders shall be maintained as indicated in Note 4 to Section 16.2. |
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16.2.4.4 | A documented continuing physical fitness training program. (DOE Medical and Fitness Implementation Guide, dated March 1991, 10 CFR Part 1046) | ||
16.2.4.5 | A documented program on the use of limited arrest authority and use of force by a Security Police Officer. (10 CFR Part 1047, DOE O 473.2, DOE M 470.4-3, Chg 1) | ||
16.2.4.6 | A documented program that prohibits any individual convicted in any court of a misdemeanor crime of domestic violence, or discharged under dishonorable conditions from being issued a Weapons Authorization Card. [Omnibus Consolidated Appropriations Act of 1997, Pub. L. No. 104-208, Paragraph 658, (1996); Gun Control Act of 1968, 18 U. S. C. Paragraphs 922 (g) (6) and (g) (9), (1997); 27 CFR Part 178] | ||
16.2.4.7 | A documented program to ensure that safety policies and procedures are in place for firearms safety (DOE O 440.1A, DOE O 473.2, DOE-STD-1091-96) | ||
16.2.4.8 | A documented to ensure uniform qualifications and requalification of a Security Police Officer. (DOE O 473.2, DOE M 470.4-3, Chg 1) | ||
16.2.4.9 | Measures to control the issuance and use of security badges, credentials, and shields. (DOE M 470.4-2, Chg 1) |
17.0 | CHEMICAL SAFETY |
17.1 | Objective |
17.2 | Implementation Requirements |
17.2.1 | Provide for the adequate storage of chemicals and other hazardous materials. | ||
17.2.2 | Provide proper personal protective equipment for personnel handling hazardous materials. |
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17.2.3 | Ensure hazardous chemicals are adequately identified and communicated to personnel. | ||
17.2.4 | Ensure that the levels of air contaminants within the GCEP Leased Premises are within the established standards of OSHA. | ||
17.2.5 | Provide for chemical related medical emergency response. |
18.0 | PACKAGING AND TRANSPORTATION |
18.1 | Objective |
18.1.1 | An individual shall be designated to implement a packaging and transportation program. | ||
18.1.2 | Coordinate with PORTS site personnel on movements of UF6. |
18.2 | Implementation Requirements |
18.2.1 | Packaging and Transportation procedures shall be established and implemented to: |
18.2.1.1 | Implement the USDOT and 49 CFR Parts 100-180 requirements for the offsite transportation of hazardous materials (including environmental samples), substances and wastes. | ||
18.2.1.2 | Ensure the USDOT and 49 CFR Parts 350-399 requirements for the offsite operation of vehicles with a GVWR of 10,000 lbs or greater. | ||
18.2.1.3 | Implement the USDOT, International Civil Aviation Organization (ICAO), International Air Transport Association (IATA) and 49 CFR Parts 100-180 requirements for the off-site transportation of hazardous materials (including environmental samples), substances and wastes via aircraft. | ||
18.2.1.4 | Ensure that transfers of hazardous materials (other than UF6) are to be in USDOT required packaging. |
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18.2.1.5 | Onsite handling procedures and packaging criteria for UF6 shall be in accordance with USEC-651,Good Handling Practices for Uranium Hexafluoride, or ANSI N14.1. |
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A. | Shutdown Authority |
1. | Clear and Present Danger |
2. | Unreviewed Safety Questions |
B. | ROA Notice of Violation |
2
C. | ROA Civil Penalties |
1. | Prior to imposing any ROA Civil Penalty on the Corporation, the DOE Regulatory Oversight Manager shall provide to USEC a written ROA Notice of Violation, as described above, and a Notice of Proposed Imposition of ROA Civil Penalty and shall state that the ROA Civil Penalty may be paid in the amount specified therein or the proposed imposition of the ROA Civil Penalty may be protested in its entirety or in part, by a written answer either denying the ROA Violation or showing extenuating circumstances. The Corporation agrees to either pay the ROA Civil Penalty in the amount proposed or answer the Notice Of Proposed Imposition of ROA Civil Penalty within 30 days of the date of a Notice Of Proposed Imposition of ROA Civil Penalty or other time specified in that notice. The answer to the Notice of Proposed Imposition of ROA Civil Penalty shall state any facts, explanations, and arguments, denying the alleged ROA Violation, or demonstrating any extenuating circumstances, error in the ROA Notice Of Violation or other reason why the Proposed ROA Civil Penalty should not be imposed and may request remission or mitigation of the proposed ROA Civil Penalty. If the Corporation files an answer to the Notice of Proposed Imposition of ROA Civil Penalty, the DOE Regulatory Oversight Manager, upon consideration of the answer, will issue a revised Notice of Proposed Imposition of ROA Civil Penalty imposing, mitigating, or remitting the ROA Civil Penalty. The Corporation agrees to either pay the ROA Civil Penalty in the amount specified or appeal the decision to the DOE ORO Manager within 30 days of the issuance of that revised Notice of Proposed Imposition of ROA Civil Penalty. Any appeal shall be presented in writing, with an opportunity for the Corporation to be heard, if so requested. | ||
2. | The amount of the ROA Civil Penalty imposed shall be based upon the severity of the ROA Violation, including the potential for the ROA Violation to affect the public health and safety or the common defense and security and whether it was a repeat ROA Violation, the actions taken to respond to the ROA Violation, and any extenuating circumstances. ROA violations of contract (lease) requirements, except the safeguarding and security of Classified Information, and any ROA civil penalties for these ROA violations shall be assigned by the DOE Regulatory Oversight Manager, in accordance with the severity level guidance provided in Appendix A of 10 CFR Part 820. CI violations and CI civil penalties regarding the safeguarding and security of Classified Information will be assigned in accordance with the requirements of 10 CFR Part 824. |
3
3. | ROA Civil Penalties imposed on the Corporation pursuant to this Agreement shall not be subject to reimbursement under Sections 5.3 of ARTICLE V, entitled “Allocation of Liabilities,” or ARTICLE X, entitled “Price-Anderson Indemnification”, of the GCEP Lease. |
D. | Failure to Take Agreed upon Actions |
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TO ACHIEVE TARGETED TURNOVER DATES IN EXHIBIT A
1
North Half Turnover 03/07
2
3