ML20235N342

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{{#if:ML20235N342|Download: [[URL::http://pbadupws.nrc.gov/docs/{{#sub:ML20235N342%7C0%7C6}}/ML20235N342.pdf%7CML20235N342]]|[[URL::http://pbadupws.nrc.gov/docs/{{#sub:%7C0%7C6}}/.pdf%7C]]}} {{#if:4|(page count::4)}}
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}}{{#if:CORRESPONDENCE-LETTERS, INCOMING CORRESPONDENCE, OTHER U.S. GOVERNMENT AGENCY/DEPARTMENT TO NRC|{{#arraymap:CORRESPONDENCE-LETTERS, INCOMING CORRESPONDENCE, OTHER U.S. GOVERNMENT AGENCY/DEPARTMENT TO NRC|,|x|| }}{{#if:{{#show:ML20235N342|?site}}|{{#invoke:Navbox|navbox}}

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{{#Wiki_filter:___ _ _ _____-_____________ _____ _ _ - p hd 3 y. (30 y f **q Mg Department of Energy s { k g Oak Ridge Operations f b [ 8 bocg P.O. Box 2001 .g g ugg k Ridge, Tennessee 37831-EeyI889p ~~ b February 15, 1989 All fClicy M s q 0 e 0cgg7 Citg Q g 7, 2'c g d g ~ FEBqD Mr. Leland C. Rouse, Chief a .~ D huctgagRf "LdIORY Fuel Cycle Safety Branch 004yf33 Division of Industrial and q Medical Nuclear Safety, NMSS g,{%s,0 j p 'Clim U. S. Nuclear Regulatory Commission g7 g Washington, D. C. 20555 'N.

Dear Mr. Rouse:

This is in response to your c_ er of February 1, 1989, requesting that the Department of Energy (DOE) provide two estimates in accordance with your guidance, one for the Centrifuge Plant Demonstration Facility (CPDF) and another for Oliver Springs plus CPDF. As you will recall in January 1989, the Nuclear Regulatory Commission (NRC) asked the DOE to provide decontamination and decommissioning (D&D) estimates for CPDF and the Oliver Springs Facility. We responded with an estimate of approximately $3 million for CPDF and $7 to $9 million for Oliver Springs, based on a 720 machine plant. These estimates were based on DOE performing the D&D activities on G.e All Chemical Isotope, Inc. (AlChemIE) owned equipment. A subsequent estimate by DOE established the D&D amount for CPDF at $2.8 million. At the request of DOE, Bechtel National, Inc., Oak Ridge, was tasked to review the DOE estimate of $3 million for CPDF. Bechtel has considerable experience in estimating remedial actions and, therefore, their expertise was of value in reviewing these estimates. After careful review, Bechtel estimated the $2.8 million for A1ChemIE's share of D&D of CPDF. The attached is a breakdown of that estimate. Bechtel was also requested to review the DOE rough order of magnitude estimate of $7 million to $9 million for Oliver Springs. Based on all data available at this time, they were unable to provide a better estimate. Until there is a detailed facility design, known isotopes that will be used (RCRA vs non-RCRA), and an understanding of AlChemIE's final plans, a more definitive estimate cannot be made at this time. Therefore, the estimate for Oliver Springs plus CPDF is approximately $9.8 million to $11.8 million. It is our intent to insure that sufficient financial conditions exist i order to adequately cover future D&D liabilities of the classified equipment that will be used by AlchemIE. We believe that sufficient I \\ 25221 0903010173 090215 PDR ADDCK 05000603 /] [(/ / '"! / IL/ A PNU 'w }. S. L n p %

~ e '*~ Mr. Leland C. Rouse. resources must be identified and plans formulated to address the D&D issue in the event that A1ChemIE is successful or unsuccessful in their commercial endeavor. In the latter case, sufficient protection must obviously be identified to protect the taxpayer from incurring a j potential D&D liability as a result of the failure of a commercial firm to handle this important environmental concern. i The Department does not agree with the $517,050 as the total estimate for D&D of all classified equipment. In our negotiations with AlchemIE, our position has always been that the $517,050 is a good estimate for what it will cost the Department to bury the classified equipment at a proper disposal site. It is not sufficient to cover the other D&D activities, su.. 1s equipment removal, decontamination and crushing operations that precede burial. In an A1ChemIE letter to the NRC on September 12, 1988, A1ChemIE recognized early on that the D&D of the CPDF was in the $3 million range. It further recognized a need to establish an adequate reserve to serve as a contingency for D&D. In fact, $5 million was to be put into a reserve for D&D. The Oak Ridge Operations Office and AlchemIE have been working to resolve their differences relating to the amount of financial assurances that would be acceptable to DOE. However, any arrangements must be adequate to permit DOE to assume the obligation of removing and properly disposing of A1ChemIE-owned equipment from CPDF. We are hopeful that this information will clarify the NRC's misunderstanding of the telephone call on December 16, 1988, between NRC staff, Jim Hughlett and me. During that phone call we emphasized that the $517,050 did not include labor and other associated costs for disposal of the classified equipment. Similarly, in subsequent phone conversations with the NRC on January 11 and 13,1989, it was again emphasized that the $517,050 was sufficient for burial and that labor was not included. If I can be of further assistance, please contact me or Jim Hughlett, FTS 626-8887. Sincerely, l muu %) l o W. Parks Dsputy Assistant Manager for Enriching Operations

Enclosure:

CPDF Estimate l ec: R. E. Lynch, AD-42, w/ enc 1.

. f. = CPDF ESTIMATE 120 Machine Plant (No RCRA) Labor $1,319,000 Travel & Living 6,000 Materials & Supplies 922,000 Subcontracts 113,000 Sub T,otal- $2,360,000 Contingency 25% 590,000 Sub Total $2,950,000 Fee 10% '" i 295,000 ..(,0 '10 3 il Sub Total n W 3iS3,245,000 (245,000) Less Scrap Value Less Decommiss'ioning Savind (300,000)' Sub Total $2,700,000 ~ " " Escalation 5 %' 135,000 TOTAL $2,835,000 Call $2,800,000 ) l l l l 1 _-____-_____a

1 l l l l 00CKETNo. .S()-h()3 8(y' CONTROL No. __ PS2pj DATE OF 000. h'.v t ih u 15 /fM DATE RCVD. _ '~bh t in vt I Q,' jyg pop __ J/' 1 FCUF_. FCAF_*/ LPDR_ Is e REr. / SAFEGUARDS ! Ecic _ i DTHER_ l DATEt M INmAL ) 1 _ _ _ _ _ - _ _ _ - _ _ _ _ - _ _ _ _ _ - _ _ _.}}

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