AGENDAUSEC Government ServicesNRC Headquarters Site Familiarization Visit

Tilda LiuRosemary ReevesMarissa Bailey

July 13, 20108:30 a.m. - 3 p.m.

8:30 a.m. Arrival, Badging(X-100 Lobby) Len Sendek

9:00 a.m. -10:00 a.m. Visit American Centrifuge Facility Dan Rogers- Overview of LCF / ACP in the Buffer StorageArea with a tour of RA areas (Receiving and StaticAssembly) Terry Sensue- Driving tour of ACP

10:30 a.m.-11:15 p.m. Plant Overview(Leadership Conference Room) Mark Keef

11:15 a.m.-11:45 p.m. Working Lunch & Project Review:- CAR / DOE Basis of Interim Operation Ed Wagner(boxed lunches provided)

11:45-12:00 p.m. Future Planning:- De-lease Project Rob Rodino

12:00-2:30 p.m. Plant Tour Mark Keef- X-333 Demonstration Cell (Jack Snyder) Jim Anzelmo- X-340 Complex Tour (Don Davidson) Doug Fogel- Driving Tour Steve Toelle

3 p.m. Depart Site

Note USEC Participants for X-100 presentations." Mark Keef, Jim Anzelmo, ToniBrooks, Damon Deti/lion, Pam Potter, Bob Lawton, Doug Fogel, Ed Wagner,Rob Rodino, Steve Toelle, Jason Lovins, Marianne Heiskell, Tom Hines

.1

Companies and Contractors1952

1986

1992

1993

1994

Goodyear Atomic Corporation

Martin Marietta

Energy Policy Act creates USEC totake over government's uraniumenrichment enterprise

USEC assumes responsibility forPiketon facility, DOE retainsresponsibility for environmentalrestoration

USEC contracts with MartinMarietta for operations andmaintenance of plant

Lockheed and Martin Marietta formLockheed Martin

USEC is privatized, becomes USECInc., an investor-owned company

USEC takes over direct operation ofPiketon plant, as well as Paducah

Enrichment Operations discontinueat Portsmouth

Operations & Oversight

1952-1975

~ERDA

ý Energy Researchand Development

Agency

1975-1977

1977-Current

1995

1998

1998

2001.ankgp, s 3 of 11

Lease Agreement° Signed July 1, 1993* Leasehold defined by exhibits

- Exhibit A is list of leased facilities

- Exhibit B is list of leased process equipment & other personalities

Leasehold must be used for purpose oT enriching uranium- DOE can authorize exceptions

- Must be in writing

Lessee will maintain leasehold in good & serviceable condition

Option to expand or reduce leasehold- Lessee will provide 60 days notice of intent- Exhibits A & B will be amended to reflect change

* °Return of leasehold- Applies end of lease term or when leasehold is reduced- 6 turnover requirements apply

4 of 11

Basic Principles of GaseousDiffusion Technology

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5 of 11

SCHEMATIC OF GASEOUS DIFFUSION STAGE

LOW PRESSUREENRICHED STREAM

N*- COOLER

HIGHFEED

PRESSURESTREAM

MOTOR COMPRESSOR \~DIFFUSI

4 •BARRIER

DEPLETEDSTREAM

ER CONTROL7VALVE

6 of 11

GASEDUS STAGE

ENRKGiEDSTREAM

7 of 11

STAGE ARRANGEMENT

MOTOR

8 of 11

000 CELL

C Valves Open* Valves Closed

4ý Enriched- Depleted

0-Mixed

9 of 11

I- 31

1-29

PO.RTSMOUTH CASCADE

4 ~~~~ ~ ~ 1 o1 4 'LC0lcofL

Product

11 of 11

Briefing on De-Lease CARand DOE BIO

NRC HQ Site Familiarization Visit

July 13, 2010

presented by

Ed Wagner

Nuclear SafetyOrR Iye0e-5

Topics To Be Covered• Review scope of de-lease: facilities and

operations° Review CAR: TSRs being deleted

TSRs remaining under Certificateand

Review status of plant safety significantSSCs and utility interfacesDiscuss anticipated DOE activities in thede-leased facilities and associatedSafety Basis and Authorization BasisOverall safety significance of change

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Background

• USEC met with NRC-HQ .in November2009 to discuss the requirements for de-lease of facilities governed by NRC TSRs

" The result of the meeting. was that NRCconfirmed that prior NRC approval of aCertificate Amendment Request wasrequired to delete such TSRs andfacilities from the Certificate

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CTUDYJ

Scope of De-Lease Plans

De-Lease primary UF6 Processing Facilities

- De-Lease all Process Buildings (X-326, X-330, X-333) by September 30, 2010

- De-Lease all Autoclave Facilities (X-343, X-344, X-342) by September 30, 2010

- The above facilities have TSRs, NCSAs, andSAR Commitments

° Retain X-705 Decontamination Building, X-710Laboratory, Maintenance Facilities, and CylinderYards, and Utility supply & distribution systems

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Current UF 6 FacilityConditions

• Enrichment cascade shutdown;minimal inventory in cascade cellsand support equipment

° Most withdrawal capacity in coldshutdown minimal liquid UF6

operations in X-326

* Limited liquid UF6 operations in X-344 and X-342; X-343 in coldshutdown

5

Scope of Facilities &Operations to be Transferred

to DOE* Enrichment already in cold shutdown* X-333, X-330 and X-326 limited operations for

deposit removal, UF6 cleanup andrepackaging, equipment removal for PGDP &ACP

- Low inventory and pressures in enrichmentand support equipment

- Limited UF withdrawals at Extended RangeProduct (ERP) and X-326 ProductWithdrawal (PW)

* X-344, X-342, X-343 facilities operations fordeposit removal, UF6 cleanup and repackaging- Liquid UF6 transfer and sampling

ri, - Vapor UF6 feed and transfer'_- 1h ýs'wi

3

12P.~Y.

Justification for CAR

" After De-Lease, USEC will no longer controlfacilities and thus cannot comply with NRCTSRs; also, NRC will no longer regulate thede-leased facilities

" Enrichment shutdown has reduced risk topublic and workers from Process Buildings andAutoclave Facility remaining operations

° Postulated accidents from these facilities afterde-lease would not have significant effect onremaining Leased, NRC-Certified operations

* Overall risk would remain well within thecurrent NRC Safety Basis

7

TSRs Requested to be Deletedfrom Certificate by CAR

• All Process Buildings enrichment and supportoperations TSRs

° All withdrawal facility TSRs

• All autoclave facility TSRs

° Selected Definitions and parts ofAdministrative TSRs that were related only tothe facilities and operations being de-leased toDOE and discontinued under Certificate (e.g.minimum staffing for transferred operations)

8

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TSRs Remaining UnderCertificate

" Almost all of TSRs Section 1, Use andApplication remain

* X-705 TSRs remaining in total• CAAS TSR for Miscellaneous Facilities (X-

710, X-720, X-700, XT-847

* Almost all of TSRs Section 3, "AdministrativeControls" remain

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SSCs Important to SafetyPlant Interfaces

* CAAS: operable for DOE use; de-lease isolationpoint in USEC area

* Building Evacuation systems (P.A.): operable forDOE use; delease isolation point in USEC area

* Fire alarm systems: operable for DOE use; de-lease isolation point in USEC area

* High Pressure Fire Water System (HPFWS):operable for DOE use; de-lease isolation pointin USEC area

* Portions of the Fire alarm systems and HPFWSwill be modified to ensure that future DOE D&Dactivities would not impact function of thesesystems in Certified space

10

'Utility System Interfaces

Utilities to be available for DOE use;isolation points in USEC space, exceptas noted below

- Electrical - some isolation points will bewithin DOE Process Building due to'LOTOconcerns; but would not affect any NRCCertified facilities

- Air & Nitrogen

- Water

- Sanitary and storm-sewers- Steam (one inside X-326 PB)

11

Air Emission PermitsWater Discharge Permits

• USEC will continue as "operator" forthe radioactive air emission(NESHAP) permits under contract toDOE for Process Buildings andAutoclave facilities

* USEC retain NPDES Permit forwater discharge points; keepCertificate requirements for wateroutfalls

12

CARSignificance Determination

Key Points

No Significant Increase in Probability orConsequences of SAR Evaluated Accidents

- No change to plant safety analysis or controlsfor remaining NRC Certified operations

- Scope of DOE BIO is within operationspreviously analyzed in current NRC SAR

13

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CAR SignificanceDetermination

Key Points (cont.)No new or different type of accident would becreated by the proposed change- No new failure modes or initiating events

than previously evaluated in remainingCertified operations

- No new failure conditions for SSCs relied onby Certificate from DOE operations in de-leased facilities or interfaces with USECSSCs

14

!•CAR Significance DeterminationKey Points (cont.)

Proposed change does not result in undue riskto Public, Worker, Environment or CommonDefense and Security

- Does not alter remaining Certifiedoperations or physical plant; interfaces arecontrolled to prevent impact on Certifiedoperations from DOE actions

- DOE and NRC standards. for handlingwaste and protecting the environment areequivalent

- Security posture remains essentiallyunchanged

DOE operational changes would be evaluatedand communicated via Shared Site Process toallow USEC to evaluated potential impacts

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Summary of CARSignificance

* Remaining Certified operations are relativelyunaffected by the de-lease and DOE operationsin the former enrichment facilities

• DOE operations at turnover are bounded bycurrent SAR safety envelope and are beingused as foundation for DOE safety basis

* Overall significance of change to existing risk islow; for remaining NRC Certificate operations,no USQ, no decrease in effectiveness ofprograms, no undue risk to the public, worker,environment or security

16

CDOE Safety & Authorization

Basis for Accepting De-LeaseDOE has determined that the transfer will be a''seamless" transfer; the new AuthorizationBasis (AB) will allow DOE to perform alloperations that are currently being performedby USEC under the Certificate in the ProcessBuildings and Autoclave Facilities

° DOE has contracted with USEC to prepare theAB and Safety Basis (SB) utilizing the existingNRC Certificate Safety Basis, safetymanagement programs, with the implementingprocedures, systems and engineeringdocuments and existing OSHA and EPAcompliance envelope (as they apply to thefacilities and operations being returned to

vi._, DOE) 17

Current NRC Safety Basis

* Developed under DOE regulation usingearly versions of current standards andapproved in 1997

* Updated and submitted to NRC (SARand TSRs) in September 2003

* Is also the Safety Basis for DOERegulatory Oversight Agreement (ROA)that allows DOE to regulate USEC-leased, but not NRC Certifiedareas/operations

18

DOE Facility SafetyFramework

Authorization Agreement (similar to NRC License orCertificate)Authorization Basis

- Safety Basis and SER, Environmental Permits andother environmental commitments, Integrated SafetyManagement System (ISMS), EnvironmentalManagement System (EMS), Verification reports,Readiness Reviews (if needed)

Safety Basis- Basis for Interim Operation (BIO), TSRs, USQs, JCOs- Supporting documents (NCSAs, NS analyses)- Safety Management Programs (SMPs)- Flowdown/implementation documents (procedures,

design basis documents)Preparation and Review in progress; completed,approved and implemented by 9/30/10

vv.em 19

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DOE RegulatoryImplementation Requirements

Approved BIO and AB (and any exemptions)° Procedures implementing BIO and AB

requirements are in place and available° Design documents and associated SSC related

controls are in place and availablePersonnel performing actions implementing BIOand AB requirements are trained and availableOperations continue through implementationdate; no restart required

* Safety of operations continues; transparent onthe operating floor

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Summary

• Primary UF 6 facilities and operationsbeing de-leased and returned to DOE

Certificate TSRs related to de-leasedfacilities are being deleted

Using existing NRC safety basis andprograms and OSHA/EPA programs todevelop DOESafety Basis

Authorization Basis and

21

Summary

NRC regulation continues to assure adequatesafety for public and workers and compliancewith 10 CFR 76 and NRC CertificateNRC review and prior approval of CAR willidentify any issues regarding transition ofregulatory authority to DOEThe CAR process and timing will allow for anysafety or regulatory issues to be resolved withDOE Authorization Basis prior to transition, thusutilizing regulatory resources more effectivelyWill allow for meeting DOE programmatic andschedule objectives

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*Formalized process jointly developed byUSEC and DOE.

*Based on requirements contained within theUSEC GDP Lease.

*Contains -350 actions for USEC, DOE-ORO,and DOE-PPPO personnel.

*Status provided weekly to USEC and DOEmanagement in addition to monthly statusmeetings.

Sn if'*Document used to formally announce thede-lease of facilities on a certain date toDOE.

*Commence scheduling activities.

*Document submitted on January 28, 2010.

earvji~ows,9- #-- F1 Pt MU

* Agreement between DOE and USEC toprovide for the following:" Establish jurisdictional boundaries of

each system that penetrates thesefacilities.

n Allow USEC access to perform specificactivities within these facilities.

" Establish USEC ownership of specificproperty within these facilities.

Document issued by USEC and used to:" Alert DOE of pending de-lease in 60 days, and" Document compliance with the Lease Turnover

Requirements." Terminate facility operations.

" Remove solid deposits that are >GSM.- Remove immediate threats to human health

and safety.* Ensure nothing adversely affects operability

of enrichment systems.

• Remove all USEC waste.* Provide current status of compliance with

environmental, health, and safetyrequirements.

rnrv, as; Provide available and current documents.A ftF ---

is uc imnt: hturn

*Over 100,000 documents will be provided to DOEduring this de-lease project.

*The following documents are scheduled forreturn and will be provided to DOE:

*Radiological data*Hazardous material data*Industrial hygiene data*Environmental data*Problem reports,Drawings-Specifications*Vendor Manuals,Procedures

mini Ilun uoSPerformed by USEC, DOE-ORO, andDOE-PPPO to verify thecompleteness of actions associatedwith the de-lease." Waste and property removal

" Jurisdictional boundaries

" Turnover requirement compliance

" Facility status

EacIIRYl irmuaier* Activity performed on the date of

return between the outgoing andoncoming custodians of the facility.