ML20236W691
| ML20236W691 | |
| Person / Time | |
|---|---|
| Site: | Portsmouth Gaseous Diffusion Plant |
| Issue date: | 07/28/1998 |
| From: | UNITED STATES ENRICHMENT CORP. (USEC) |
| To: | |
| Shared Package | |
| ML20236W302 | List: |
| References | |
| NUDOCS 9808060153 | |
| Download: ML20236W691 (55) | |
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t APPLICATION FOR UNITED STATES NUCLEAR REGULATORY COMMISSION CERTIFICATION PORTSMOUTH GASEOUS DIFFUSION PLANT USEC-02 REMOVE / INSERT INSTRUCTIONS REVISION 22 Remove Pages Insert Pages VOLUME 1 LIST OF EFFECTIVE PAGES i/ii i/ii ix / x ix / x xxy / xxvi xxv / xxvi INTRODUCTION 1 through 4 1 through 4 SECTION 3.2 3.2-15 / 3.2-16 3.2-15 / 3.2 16 3.2-61 / 3.2-62 3.2-61 / 3.2-6' VOLUME 2 LIST OF EFFECTIVE PAGES i / ii i / ii ix / x ix / x l
xxv / xxvi xxv / xxvi SECTION 6.1 l
l 6.1-1 / 6.1-2 6.1-1/ 6.1-2 l
9808060153 980728 PDR ADOCK 07007002 C
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1 APPLICATION FOR UNITED STATES NUCLEAR REGULATORY COMMISSION CERTIFICATION PORTSMOUTH GASEOUS DIFFUSION PLANT USEC-02 l
REMOVE / INSERT INSTRUCTIONS l
REVISION 22 Remove Pages Insert Pages VOLUME 3 QUALITY ASSURANCE PROGRAM i/ii i / ii 1/2 1/2 FUNDAMENTAL NUCLEAR MATERIALS CON fROL PLAN i/ii i/ii 7-3/7-4 7-3 / 7-4 TRANSPORTATION SECURITY PLAN 1
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PIIYSICAL SECURITY PLAN 10 10 20 20 CLASSIFIED MATTER PROTECTION PLAN 15a,16 15a,16 23,24 23,24
t APPLICATION FOR UNITED STATES NUCLEAR REGULATORY COMMISSION CERTIFICATION PORTSMOUTH GASEOUS DIFFUSION PLANT USEC-02 REMOVM/ INSERT INSTRUCTIONS REVISION 22 Remove Pages Insert Pages i
DEPLETED URANIUM MANAGEMENT PLAN iii / iv iii./ iv
$/6 5/6 DECOMMISSIONING FUNDING PROGRAM iii through vi iii through vi I through 6 1 through 6 R-1/ R-2 R-1/ R-2 SFA-1/ PSB-1 SFA-1 through PSB-3 STA-1 STA-1 through STA-6 i
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SAR-PORTS July 28,1998 Rev.22 INTRODUCTION The United States Enrichment Corporation (USEC or Corporation) hereby submits its initial Application to the Nuclear Regulatory Commission (NRC) for a certificate of compliance for the Portsmouth Gaseous Diffusion Plant (PORTS) in accordance with section 1701(c) of the Atomic Energy Act of 1954
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(AEA), as amended by the Energy Policy Act of 1992, and 10 CFR Part 76.
USEC entered into a Lease Agreement with DOE over portions of PORTS and assumed responsibility for operations. Pursuant to 10 CFR 76.31, USEC is required to submit an initial application for a certificate of compliance to the NRC governing its operations at PORTS. In accordance with 10 CFR 76.35, this Application includes:
technical safety requirements (10 CFR 76.35(e));
a safety analysis report (10 CFR 76.35(a));
a quality assurance program (10 CFR 76.35(d));
an emergency plan (10 CFR 76.35(f));
an environmental compliance status report (10 CFR 76.35(g));
a fundamental nuclear material control plan (10 CFR 76.35(h));
a transportation protection plan (10 CFR 76.35(i));
a physical protection plan (10 CFR 76.35(j));
a security plan for classified matter (10 CFR 76.35 (k));
a radioactive waste management program description (10 CFR 76.35(m));
a depleted uranium management program description (10 CFR 76.35(m));
a description of USEC's funding program for waste and depleted uranium disposition (10 CFR 76.35(n)); and information from which the Commission can prepare an environmental assessment related to DOE's
" Plan for Achieving Compliance" (10 CFR 76.35(c)).
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d SAR-PORTS July 28,1998 Rev.22 The following information is provided in accordance with 10 CFR 76.33(a)(2):
Applicant Name, Address and Other Corporate Information United States Enrichment Corporation Two Democracy Center 6903 Rockledge Drive Bethesda, Maryland 20817 USEC is a wholly owned subsidiary of USEC, Inc. and maintains its headquarters at the above l
address. USEC is neither owned, controlled nor dominated, by any alien, foreign corporation or foreign government. All shares of USEC are held by USEC, Inc., which is in turn owned by private investors. USEC utilizes an operating contractor, Lockheed Martin Utility Services, Inc. (LMUS), to operate the plants in accordance with USEC direction. USEC is ultimately responsible for the operation, maintenance, modification, design, fabrication, and testing of the GDPs.
The mailing address for PORTS is:
l United States Enrichment Corporation i
Portsmouth Gaseous Diffusion Plan P. O. Box 628 Piketon, Ohio 45661 Information on Corporate Directors and Officers The directors and principal officers (those officers identified in Safety Analysis Report Section 6.1) of the Corporation are all citizens of the United States. The business address for all such persons is Two Democracy Center,6903 Rockledge Drive, Bethesda, Maryland 20817.
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July 28,1998 Rev.22 l
Princinal Officers I
i Mr. William H. Timbers President and Chief Executive Officer Mr. George P. Rifakes Executive Vice President - Operations Mr. James H. Miller
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Vice President - Production l
Format and Content of the USEC Certification Application j
The Application contains a Safety Analysis Report (SAR), Technical Safety Requirements (TSRs).
and programs, plans and other documents as described above. In accordance with 10 CFR 76.35(b), the Application also includes a plan prepared and approved by DOE for achieving compliance with respect to any areas of noncompliance with the NRC's regulations identified by USEC as of the date of this Application. The Compliance Plan provides an expanded description of the l
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SAR-PORTS April 15,1998 Rev.19 areas of noncompliance, a justification for continued operation, a description of the plan of action to achieve compliance, and the schedule for completion of those actions, as applicable.
The Application is written in the present tense. The physical description of installed structures, l
systems and components (SSCs) in the Application is current as of June 1,1995, except as described in Section 3.8, " Items Addressed by Compliance Plan." The programs, plans, procedures and other aspects of the facility's operations other than the SSCs are described as they will be when all Compliance Plan items are completed. Each section of the Application contains a subsection entitled " Items Addressed by Compliance Plan". This subsection describes those aspects of the program, plan or section topic that are not in full compliance with the Application. This subsection also contains a brief description of what is currently in place. Any section which does not have any related Compliance Plan states "None identified."
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SAR-PORTS April 15.1998 Rev.19 shows drawings of a typical single-hook crane and a sling and a typical double-hook crane and a sling.
3.2.1.1.5 X-343 Cylinder /Picine Evacuation It is necessary to evacuate small quantities of UF., purge gases, or lights from the sample system, autoclaves, pigtails or piping. This evacuation is acco.nplished by valving the system to be evacuated into a feed header or the X-333 evacuation line and returning these waste gases to the cascade. This method eliminates any venting to atmosphere and possible environmental insult.
3.2.1.2 X-342A Feed Vaporization Facility The X-342A Facility occupies the east portion of the large X-344A/342A complex and was the former primary location for feed sampling and cascade feed vaporization. Another important function performed in the X-342A Facility is the manufacture of fluorine which is described in Section 3.4.7.
The X-342A Facility is equipped with two seven-foot diameter Feed and Sample Autoclaves identical in design and operation to the three Feed and Sample Autoclaves in X-343.
Ten-ton cylinders of UF, for customer orders are sometimes sampled in the X-342A autoclaves. Then the liquid-filled cylinders are removed from the autoclaves and transferred to an adjacent " cool down" area.
When the cylinders have cooled for the required amount of time defined m Section 3.2.7 to solidify the UF.,
i they are moved from the building.
Directly beneath the X-342A autoclaves is a sump which receives autoclave condensate. The sump f
has two pumps which discharge through an oil interceptor to a storm drain. Since the geometry of both the sump and the interceptor are nuclearly unfavorable, they contain borosilicate-glass raschig rings as a nuclear l
criticality safety control.
If contamination of the sump results from a UF, release, the operator can shut off the pumps and close valves in order to prevent contamination of the drains.
3.2.1.2.1 Autoclaves See 3.2.1.1.1.
The operation and safety systems are identice' to X-343 Feed and Sampling Autoclaves.
3.2.1.2.2 Scales See 3.2.1.1.2.
l 3.2.1.2.3 UF Svstem Connectors md Associated Pinine See 3.2.1.1.3 3.2-15 1
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SAR-PORTS July 28,1998 Rev.22 3.2.1.2.4 Cranes and Rig 9ine See 3.2.1.1.4 3.2.1.2.5 X-342A Evacuation System The X-342A Facility evacuates residual UF., purge gases and lights to the cascade through feed headers.
3.2.1.3 X-344A Toll Enrichment Services Facility The X-344A Toll Enrichment Services Facility is the processing and shipping / receiving point for low assay (5 % enrichment or less) toll product UF.. Typically, toll product is withdrawn from the enrichment cascade into 10-ton cylinders. Before the material can be shipped, it must be sampled and transferred into the l
smaller (21/2-ton) cylinders which are usually owned by the customers and are approved for transport over highways and railways. Special shipping packages are used to protect the full product cylinders in shipment.
The X-344A building has approximately 40,000 square feet of ground floor area,18,700 square feet of second floor, and 4,300 square feet of basement floor area. The majority of the ground floor is consumed by the two high-bay areas which are served by overhead cranes and have large roll-up doors to allow entry of semi-tractor / trailer rigs, straddle carriers, ferklifts, and railcars. Cool down positions are accessed by crane through the west side of the building.
The sampling and transfer onerations are carried out in X-344A using any of the four autoclaves present in the north high-bay. Shipping and receiving activities can be carried out in either the north or south bay using any of the overhead bridge cranes. Cylinder unloading can occur outside the building in the X-745-B cylinder storage lot during good weather.
3.2.1.3.1 Autoclaves The four autoclaves located in X-344A are 96-inch, containment-type units with cylinder rolling and tilting devices to facilitate sampling and transfer of UF contained in 12-inch,30-inch or 48-inch cylinders.
The autoclaves are rated at 150 psig. Figure 3.2-8 shows a diagram of a transfer autoclave servicing the 30-inch and 48-inch cylinders.
3.2.1.3.1.1 Autoclave Oneration With 10-Ton Cylinders A typical transfer operation consists of placing a 10-ton enriched product cylinder into an autoclave with the valve in the 12 o' clock position. The cylinder is lowered into place with the overhead crane positioning the cylinder on rollers. Once the cylinder is in position, an air-operated backup valve is attached to the cylinder valve and a copper pigtail is used to connect the backup valve to the UF. drain line whi:h leads
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to the sample / transfer manifold outside the autoclave. The conductivity cells are tested.
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"SAR-PORTS July 28,1998 l
- Rev.22 3.2.5.1 X-343 Feed Vaporization Facility The X-343 facility, which has a total floor area of 11,200 square feet, is the receiving point for all inbound UF. feed material in large cylinders (10-ton and 14-ton) as well as the shipping point for those cylinders after they are sampled and fed to the cascade.
These cylinders are off-loaded from trucks or railcars using any of three overhead bridge cranes rated at 20 tons capacity. Once unloaded, the cylinders are inspected for physical damage. The cylinders are also l
checked prior to heating for tne presence of non-condensable gases, such as air, or volatile contaminants, such as hydrogen fluoride, which could cause excessively high pressure within the cylinder upon heating. A l
contract for enrichment services specifies the weight of the feed material required for the desired quantity and assay of product to be shipped. Thus, the cylinders must be accurate.!y weighed both upon receipt and after feeding (accurate weights are made for all Ur. cylinders handled on plantsite for economic and security l
reasons). The scales used are termed " accountability scales" and are calibrated frequently against National Institute of Standards and Technology traceable (standard) weights. Scales are described in Section 3.2.1.1.2.
After a cylinder is inspected and weighed it is lifted and carried outside with a 20-ton overhead bridge crane where it is stored on cradles. Receipt information, including cylinder idenuty, weight and storage location. is entered into the Production Automated Scheduling System (PASS). This information is routinely transferred from PASS to the plant's Dynamic Nuclear Materials Control and Accountability System (DYMCAS) several times a day, thereby maintaining accountability of the nuclear materials received on plantsite. Figure 3.2-21 shows a 48 inch cylinder stored on a wooden cradle.
The feed cylinder flow diagram shown in Figure 3.2-2 depicts the actions performed from the time the feed cylinder is received to the time it is returned empty.
3.2.5.2 X-344A Toll Enriclunent Shipping and Receiving l
The X-344A Toll Enrichment Services Facility is the processing and shipping / receiving point for low assay (5 % enrichment or less) toll product UF.. Typically, toll product is withdrawn from the enrichment cascade into 10-ton cylinders. Before the material can be shipped, it must be sampled and transferred into the
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smaller (21/2-ton) cylinders which are usually owned by the customers and are approved for transport over l
highways and railways. Special protective shipping packages (PSPS) are used to protect the full product cylinders in shipment.
The X-344A building has approximately 40,000 square feet of ground floor area,18,700 square feet i
of second floor, and 4,300 square feet of basement floor area. The majority of the ground floor is occupied by the two high-bay areas which are served by overhead cranes and have large roll-up doors to allow entry of truck. semi-trailers, straddle carriers, forklifts, and railcars.
3.2-61
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SAR-PORTS April 15,1998.
Rev.19 3.2.6 Cylinder Storage
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l The storage of cylinders containing UF. and other uranium bearing materials is accomplished at several locations at the Portsmouth site.
Large cylinders of the 10-ton and 14-ton size are stored in the X-745B, X-745C, X-745E, X-745F and X-745G outside storage lots and at two additional processing lots (X-343N and X-343S) at the X-343 Feed Vaporization Facility. Empty feed cylinders can be stored east of X-343 in a gravel lot. Product cylinders of the 21/2-ton size are stored at the X-745B, X-343N, and X-343S storage lots. Most of the UF stored in l
smaller containers is highly enriched material which must be protected by the Special Nuclear Materials (SNM) Safeguards and Security Program. The major portion of the highly enriched SNM storage is effected at the X-345 Vault, however, some SNM considered "in process" is stored in special SNM areas at the X-326 Process Building and in the X-705 Chemical Operations Facility. (See Figure 2.1-4 for facility locations.)
The storage areas are located, for the most part, near the processing areas which they serve.
Some low assay, small cylinder UF, storage and the storage of some empty small cylinders is accomplished at the X-344 miscellaneous storage area. No SNM material is stored in non-SNM storage areas.
The X-744G facility (DOE facility not leased by USEC) is also the repository for solid compounds of uranium such as U 0s. I'O,. UF and uranyl nitrate hexahydrate crystals Also stored in the X-744G Building are low 3
4 uranium concutration solid plantsite wastes, such as used alumina, which are used as trapping media at various plantsite p irging and venting operations. These waste materials are he!d in X-744G pending proper disposition, which n.2y include uranium recovery.
The primary safety considerations for storage of 21/2-ton,10-ton, and 14-ton UF, cylinders are that the storage surface be reasonably level, have good drainage, and have a stable base. To assure that the storage pads are of substantial construction, applicable sections of all appropriate codes, standards, and specifications are used. Two and one-half ton cylinders are stored directly on the pad or on cradles. Ten-and fourteen-con l
cylinders are generally stored on cradles to spread the loading over a larger area of the cylinder than the l
stiffening rings provide. However, ten and fourteen ton cylinders are also staged without cradles while l
awaiting final storage. The X-745 outside storage areas for large UF, cylinders are lighted. The cylinders l'
are stored in an orderly arrangement to facilitate inventory, inspection, and cylinder retrieval.
The primary safety considerations for indoor, small cylinder (less than 30 inch diameter) storage areas are to provide for nuclearly safe storage geometries, low combustible loadings, and proper aisleways for handling equipment for the placement and retrieval of UF. cylinders into and from storage locations.
Typically, the storage arrangements at X-744G, and the o;her various small cylinder process storage areas consist of rows of metal racks and tubular holders which are made in such a manner as to provide built-in safe spacing between containers in storage. Containers are moved in these storage areas singly and are manually pushed about in wide-base carts or wagons along " safe pathways" marked onto the floors. Main traffic arteries are marked by " safe aisleway" botr.lary lines also painted onto the floors. The wide-base carts assure proper spacing between the cylinders bemg handled during the 3.2-62 i
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l SAR-PORTS July 28,1998 i
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- 6. ORGANIZATION AND OPERATING PROGRAMS 6.1 ORGANIZATION AND. RESPONSIBILITY l
l Under the Energy Policy Act of 1992, the Nuclear Regulatory Commission (NRC) was required to establish a certification process to ensure that USEC complies with the standards established by NRC for the l
GDPs under 10 CFR Part 76. The Energy Policy Act provides that the requirement for a certificate of I
compliance shall be in lieu of any requirement for a license for the GDPs and that USEC shall apply for a certificate of compliance. The Act also requires that USEC and any contractor operating the GDPs for USEC l
provide the NRC with ready access to the facilities, personnel, and information that the NRC considers l
necessary to carry out its responsibilities for certification.
USEC is committed to conducting operations in a manner that protects the health and safety of workers and the public, protects the environment and provides for the common defense and security. In order to meet these commitments, as well as others required for operation of the uranium enrichment enterprise, USEC has issued an operations policy manual which contains statements of policy and procedures to guide the day-to-day l
l business and provide direction to USEC employees. The USEC policy with respect to nuclear safety, j
safeguards and security states in part:
USEC is ultimately responsible for, and is committed to, safe operation. maintenance, modification.
l design, fabrication, and testing of the Portsmouth Gaseous Diffusion Plant...and the Paducah Gaseous l
Diffusion Plant...and is committed to conducting operations in a manner that protects the health and safety of workers and the public, protects the environment and provides for the common defense and l
security...USEC has provided the management structure to ensure that the safety / safeguards policy l
is effectively implemented.
The line organization is responsible for the safe operation of the GDP. Programs and staff organizations are established for safety, safeguards, and quality (SS&Q) and environmental and health (E&H) areas and are provided with sufficient resources to support the line organization in safe operation of the GDP.
USEC and its operating contractor, Lockheed Martin Utility Services, Inc. (LMUS), have established l
management systems with associated policies, administrative procedures, and management controls to ensure:
the GDP equipment, facilities and procedures; the staff (including training and qualifications), and the E&H and SS&Q programs provide for the protection of the health and safety of workers and the public, protection of the environment, and for the common defense and security. Management controls have been established to maintain the safety / safeguards basis of the GDP as described in this application. E&H and SS&Q organizations have been established with a reporting chain, independent from the line organizations, to a senior manager 6.1-1 j
SAR-PORTS July 26,1996 Rev. 4 (Ex:cutive Vice President Operations, for Corporate Headquarters and General Manager for plant organizations).
The integration of the plant operations and the various E&H and SS&Q programs and requirements is currently accomplished through a variety of management practices. Where frequencies are identified below, they represent current normal business practice but can be adjusted by the manager responsible for the meeting.
Executive Vice President, Operations, daily officers meeting.
Executive Vice President, Operations, weeldy staff meetings.
Vice President, Production, phone call with General Managers to discuss the overall status of the plants, problem and event reports, the daily production report, future plans, and other pertinent subjects.
General Manager meets weeldy with Enrichmert Plant Manager and Organization Managers to discuss issues and policy implementation Monthly review of plant performance indicators.
The Plant review and approval systems [particularly the function of the Plant Operations Review Committee (PORC)] for procedures, training, modifications / changes to the physical plant and/or plant l
programs as described in this application, provide for the integration of the various SS&Q and E&H requirements and controls.
Plant work permit systems provide the imegration in the field of various health, safety, and environmental program requirements and hazard evaluations.
Figure 6.1-1 shows the USEC organization for operation of the GDPs. Managerial positions that have responsibilities important to safety and nfeguards are described in iis chapter; other managerial positions are described in those ponions of the application where applicable, particularly in the Quality Assurance Program Description, Radioactive Waste Management Program Description Emergency Plan, Fundamental Nuclear Material Control Plan, Security Plan for the Transportation of Special duelear Material of Low Strategic Significance, and the Security Plan for Classified Matter (Materials Management Manager.. Administrative Support Manager, and Customer Service and Product Scheduling Manager are not described in the application). " Organization Managers" report to either the Enrichment Plant Manager or General Manager;
" Group Managers" report to Organization Managers; and "Section Managers" report to Group Managers.
Section 6.1.1 describes the organizational commitments, relationships, responsibilities and authorities for the overall management system o assure tr.e protection of the health and safety of the workers and the public, protection of the environment, and provide for the common defense. This section includes the qualifications, functions, responsibilities, and authorities of the positions in the organization assigned functions related to SS&Q and E&H.
Section 6.1.2 describes the management controls for maintaining the E&H and SS&Q programs and the administrative systems to control relationships and interfaces between programs.
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Quality Assurance Program - GDPs July 28,1998 Rev.22 L
INTRODUCTION The United States Enrichment Corporation (USEC) is required by 10 CFR 76.35(d) to s4. nit, as part ofits application for a certificate of compliance, a quality assurance program that meets the requirements of 10 CFR 76.93. USEC is required by 10 CFR 76.93 to: " establish, maintain, and execute a quality assurance i
p' gram satisfying each of the applicable requirements of ASME NQA-1,1989, " Quality Assurance Program for Nuclear Facilities," or acceptable alternatives to those requirements." Section 76.93 also states that "the Corporation shall execute the criteria in a graded approach to an extent that is commensurate with the i
importance to safety."
USEC's Quality Assurance Program (QAP) for the. Paducah and Portsmouth Gaseous Diffusion Plants follows and satisfies the Basic Requirements and.":pplementary Requirements of ASME NQA-1,1989 as described herein.
2.
REQUIREMENTS 2.1 ORGANIZATION l
The organizational relationsh!ps, responsibilities, authorities, delegations, lines of communication, position locations and qualifications, and organizational charts are described in Section 6.1 in the Safety Analysis Report (SAR), Figure 2-2 of this program, and the following paragraphs.
Independent Assessment Independent Assessment performs audits and assessments of plant activities affecting safety, quality and the environment, and performs follow-up to ensure that corrective actions have been effective.
Quality Systems Quality Systems maintains the Quality Assurance Program, prepares procedures, reviews other
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selected procedures for inclusion of quality requirements, performs a quality help role for others, and participates in operational readiness reviews.
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Quality Assurance Program - GDPs July 28,1998 Rev.22 1
Nuclear Safety Assurance Nuclear Safety Assurance performs independent engineering assessments, provides operational nuclear safety oversight, and performs selected operational experience reviews for the affect on the safety of the plant.
Individual responsibilities are also identified within the various responsibility sections throughout this program.
The Independent Assessment and Quality Systems groups report to managers who report to the Safety, Safeguards and Quality Manager. Members of Nuclear Safety Assurance report directly to Safety, Safeguards and Quality Manager.
2.2 QUALITY ASSURANCE PROGRAM 2.2.1 General This QAP sets forth the minimum requirements for those items, activities, and services within the scope of this QAP. This QAP is established, maintained, and executed as described in this document.
Unless specifically identified within this document USEC commits to the Basic Requirements and Supplementary Requirements of ASME NQA-1,1989.
Those requirements of this Q W v hich are not fully implemented at the present time are identified in Appendix B of this document and the Plans for Achieving Compliance with NRC Regulations at the Paducah/Portsmouth Gaseous Diffusion Piaia prepared and approved by DOE.
The GDPs were constructed over 40 years ago and were operated by DOE and its predecessors under different quality assurance criteria. USEC assumed responsibility for operations in accordance with the July [
1,1993 Lease Agreement, as amended, between USEC and DOE. This QAP is submitted as part of the USEC application for a certificate of compliance and governs those activities within USEC's control and responsibility for the management, operation, maintenance, and modification of the GDPs.
l USEC applies quality assurance in a graded approach commensurate with the category of the structures, systems, and components (SSC), and activities and services associated with the SSCs.
This QAP has been established to achieve the required level of safety and quality in accordance with the requirements referred to in the following sections.
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l
. DU Plan-PORTS July 28,1998 Rev.22 Table 1 Estimated Volume of Depleted Uranium Generated by USEC at PORTS and PGDP Total Depleted Uranium (DU)
Year' (MTU)
Responsibility July 1,1993 - June 30,1997 67,874 DOE l
2 FY 1998 estimate 11,554 DOE l
3 l
FY 1999 estimate 10,400 '
DOE /USEC2d l
FY 2000 estimate 10,400 DOE /USEC' l
3 l
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i l-FY 2001 estimate 10,400 DOE /USEC3 3
l 1
FY 2002 estimate 10,400 -
DOE /USEC' l
3 FY 2003 estimate 10,400 DOE /USEC' l
3 FY 2004 estimate 10,400 DOE /USEC3 l
l FY 2005 estimate 10.400 DOE /USEC' l
3 l
Notes:
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1.
Fiscal year ending June 30.
l I
2.
DOE retains liability for depleted uranium generated prior to USEC's privatization per USEC l
l Privatization Act (Public i.aw 104-134, Sec 3109, paragraph (a)(3)).
I l
3.
In accordance with the " Memorandum of Agreement Between the United States Department of l
Energy and the United States Enrichment Corporation Relating to Depleted Uranium," dated June 30, 1998, USEC will transfer depleted uranium to DOE in government fiscal years (ending September 30) 1999 through 2005. Therefore,' USEC will only be responsible to disposition the l
following amounts of depleted uranium for the subject USEC fiscal years (ending June 30):
Fiscal Year DU USEC Responsible For (MTU)
I 1999 9,200 l
2000 8,200 l
l 2001 8,000 l
2002 8,000 l
2003 6,950 l
2004 6,375 l
2005 9.375 l
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Rev.22 CONTENTS I.0 INTRODUCTION.......
I 2.0 SCOPE OF USEC'S DEC05D11SSIONING FINANCIAL RESPONSIBILITY......
.2 3.0 DECONDIISSIONLNG COST ESTIMATE.
3 3.I LLW DISPOSAL.....
3 3.2 MIXED WASTE DISPOSAL.
4 3.3 DEPLETED URANIUM DISPOSITION.
5 4.0 REVIEW AND ADJUSTMENT OF DECONDfISSIONING COSTS AND FUNDING LEVELS...
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1.0 INTRODUCTION
l As a condition of certification,10 CFR 76.35(n) requires the United States Enrichment Corporation (USEC) to submit, as part of its application for an NRC certificate of compliance:
A description of the funding program to be established to ensure that funds will be l
set aside and available for those aspects of the ultimate disposal of waste and depleted uranium, decontamination and decommissioning, relating to the gaseous diffusion plants leased to the Corporation by the Department of Energy, which are the financial responsibility of the Corporation.
Section 76.35(n) also requires USEC to establish financial surety arrangements to provide the requisite funding. The funding mechanism must ensure availability of funds for activities required to be completed both before and after the return of the GDPs to the Department of Energy (DOE) in accordance with the July 1.
1993 Lease Agreement between DOE and USEC (Lease Agreement). The funding program must also contain a basis for cost estimates used to establish funding levels, and means of adjusting such cost estimates and associated funding levels over the duration of the lease. Finally, USEC is not required to provide funding for "those aspects of decontamination and decommissioning... assigned to the Department of Energy under the Atomic Energy Act of 1954, as amended."
In accordance with 10 CFR 76.35(n), USEC hereby submits a description ofits program to ensure adequate funds are available for the disposal of waste and the disposition of depleted uranium generated at the Portsmouth plant and for which USEC is financially responsible under the Atomic Energy Act (AEA).
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l Rev.22 2.0 SCOPE OF USEC'S DECO 3I511SSIONLNG FINANCIAL RESPONSIBILITY USEC began to operate the Portsmouth plant on July 1,1993, in accordance with the AEA, as amended, and the July 1,1993 Lease Agreement. Prior to July 1,1993. DOE operated the plant for about 40 years. Section 1403(d) of the AEA provides that "[t]he payment of any costs of decontamination and decommissioning.. with respect to conditions existing before the transition date [ July 1,1993], in connection with property of the Group leased under subsection (a), shall remain the sole responsibility of the Group."
Accordingly, USEC is not financially responsible for, and this Program Description does not provide funding assurance for, decontamination or decommissioning costs associated with any operations at the Portsmouth plant prior to July 1,1993.
Furthermore, the Portsmouth plant, including the Leased Premises, will ultimately be decommissioned by DOE, which is solely responsible for the conduct of decontamination and decommissioning activities at the plant, and which also bears sole financial responsibility for the bulk of these activities. Section 4.6 of the Lease Agreement states that:
Except as provided in Section 4.5(c) of this Lease, the Department will be responsible for and will pay the costs of all Decontamination and Decommissioning, including the costs of Decontamination and Decommissioning of the Leased Premises, the Leased Personalty, any personal property found on the Leased Premises, regardless of ownership, and any Capital Improvement.
In addition, Section 4.3(b) of the Lease Agreement states that "[t]he Corporation shall be entitled, should it choose, to leave any of its personal property (including personal property contaminated by radioactive materials) on the Leased Premises at the end of the Lease Term-for Decontamination and Decommissioning by the Department" However, USEC does have certain specific financial responsibilities with respect to some of these activities. Under Section 4.4(c) of the Lease Agreement, USEC is " responsible for the ultimate treatment and disposal of any waste generated by the Corporation, and for which the Department is not responsible...."
Under this provision, USEC is financially responsible for, and this Program Description addresses, the disposal of low-level radioactive waste (LLW) and " mixed" hazardous and radioactive waste generated by USEC at the Portsmouth plant after the date of privatization.1/
l In addition, as discussed above, Section 4.6 of the Lease Agreement provides that the Department will pay the costs of all decontamination and decommissioning, "[e]xcept as provided in Section 4.5(c) of this Lease
... " Section 4.5(c) authorizes USEC to remove any capital improvement at the Portsmouth plant, but "if such removal increases the costs of the Department for the Decontamination and 1/
A more detailed description of USEC's plans to manage and dispose of LLW and mixed waste generated at the Portsmouth plant is provided in the Radioactive Waste Management Program, which is included as part of this certificate of compliance application.
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DFP-PORTS July 28,1998 l
Rev.22 i
Decommissioning of the Leased Premises to which any such Capital Improvement was attached, the Corporation will pay any such increase in Decontamination and Decommissioning costs." At this time, USEC does not anticipate removing any capital improvement from the plant site. Therefore, no financial assurance for Decontamination and Decommissioning cost increases arising out of such removal is currently being provided.
Finally. USEC is generating depleted uranium as a result of its operation of the Portsmouth plant.
l 2/ Section 3109(a)(3) of the USEC Privatization Act (pa:, sed April 1996) states that:
All liabilities arising out of the disposal of depleted uranium generated by the Cogoration between July 1,1993 and the privatization date shall become the direct liabilities of the Secretary [ Secretary of Energy].
Therefore, this Progra.n Description also describes USEC's funding program to ensure funds are available for the ultimate disposition of the depleted uranium generated by USEC's operation after the date of privatization.
l 3.0 DECOSISIISSIONING COST ESTIMATE t
In accordance with 10 CFR 76.35(n), USEC has estimated the costs associated with the disposal of LLW and mixed waste, and the disposition of depleted uranium generated by its operations at the Portsmouth plant. These costs are not considered decontamination and decommissioning costs, but rather production costs since tiu y are incurred during the operation and maintenance of the plant. These cost estimates are cumulative, and are calculated one year in advance. The estimated cost for the disposal of waste and for the disposition of depleted uranium generated by USEC at the Portsmouth plant for the first fiscal year of privatization is 17.1 million. The bases for these cost estimates, by category, are set forth below. The total disposal or disposition costs for each category are identified in the subsection title line, and described in detail in the respective l
subsection. USEC's cost estimates will be reviewed annually and revised, as necessary, to reflect any change j
in USEC's projected liability. USEC will also review and revise, as necessary, its cost estimates to reflect any changes as a result of the enactment of any legislation related to USEC's privatiution.
3.1 LLW DISPOSAL ($.6 million)
USEC generates LLW at the Pottsmouth plant. USEC anticipates that its LLW disposal activities will l
l be such that most LLW generated in a given year will be disposed of within that year. Therefore, USEC's i
current LLW inventory at Portsmouth is a short term liability.
i l
2/
The Depleted Uranium Management Plan describes in greater detail USEC's plans for the management and disposition of depleted uranium.
3
DFP-PORTS July 28,1998 Rev.22 3
USEC anticipates generating a total of 54,600 ft of LLW at the Portsmoudi plant for the first fiscal year of privatization. The e:,timated volume is based upon previous actual waste generation at Portsmouth.
USEC has assumed disposal ofits LLW at various commercial disposal facilities at an average estimated cost 3
for LLW generated at the Pertsmouth plant of $47.25 per ft USEC's cost estimate is based on the weighted average cost to teduce the volume of LLW and to dispose of such waste. The cost estimate for each waste stream in the weighted average cost is based either upon existing contract prices, or upon prices from contracts being re-negotiated with current waste treatment \\ disposal subcontractors.
USEC generates 17 general types of LLW, as described in the Radioactive Waste Management Program. Each individual LLW stream has a different volume estimate and a different cost of disposal. For a fiscal year, the different volumes of waste generated and their disposal cost estimates are averaged to establish an average disposal cost.
The disposal cost for LLW generated by USEC at the Portsmouth plant for the first fiscal year of 3
3 privatization is estimated to be: 54.600 ft X $47.25 per ft = $2.6 million. USEC has signed a contract with a commercial waste disposal firm to accept low level waste generated by USEC and is shipping waste on an ongoing basis and funding this disposal cost out of cash generated from operations. Because LLW is shipped from the site on an ongoing basis, USEC estimates the decommissioning disposal liability for LLW at Portsmouth would not exceed $.6 million at any point during the first year of privatization.
3.2 MIXED WASTE DISPOSAL ($.6 million)
USEC generates mixed waste at the Portsmouth plant. USEC anticipates that its mixed waste disposal activities will be such that most mixed waste generated in a given year will be disposed of within that year.
Therefore, USEC's current mixed waste inventory at Portsmouth is a short term liability.
3 USEC anticipates generating a total of 8,300 ft of mixed hazardous and radioactive waste at the Portsmouth plant for the first fiscal year of privatization. The estimated volume is based upon previous actual waste generation at Portsmouth. The current average cost estimate for disposing of mixed waste generated at Portsmouth is $241.20 per ft'. This cost estimate is based on the expected composition of mixed waste generated at the plant and the current disposal cost estimates.
USEC generates 22 general types of mixed waste as described in the Radioactive Waste Management Program. Each individual mixed vaste stream has a different volume estimate and a different cost of disposal.
For a fiscal year, the different volumes of waste generated and their disposal cost estimates are averaged to establish a weighted average disposal cost. The cost estimate for each waste stream in the weighted average l
cost is based either upon existing contract prices, or upon prices from contracts being re-negotiated with current waste treatment \\ disposal subcontractors.
)
l Based on the above, USEC estimates that its disposal costs for mixed waste generated by its Portsmouth operations for the first fiscal year of privatization will be: 8,300 ft X S241.20 per ft =
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DFP-PORTS July 28,1998 Rev.22 i
$2.0 million. USEC has signed a contract with a commercial waste disposal firm to accept most mixed waste generated by USEC and is shipping mixed waste on an ongoing basis and funding this disposal cost out of cash generated from operations. Because mixed waste is shipped from Portsmouth on an ongoing basis, USEC estimates the decommissioning disposal liability for mixed waste at Portsmouth would not exceed $.6 million at any point during the first year of privatization.
3.3 DEPLETED URANIU51 DISPOSITION ($15.9 million) l USEC estimates that approximately 2,760 metric tons of depleted uranium will have to be dispositioned by USEC due to Portsmouth operations in the first fiscal year of privatization, and that the ultimate disposition of this material will cost approximately $15.9 million. This estimate is based on the anticipated disposition strategy set forth in USEC's Depleted Uranium N!anagement Plan, and assumes that the depleted UF will be converted to U 0s, and then packaged and shipped to a repository authorir-d to 3
receive such material. U 0 conversion costs are estimated to be approximately $4 per kilogram of uranium 3 3 based on the NRC's acknowledgment that " current estimates of the cost of conversion of uranium hexafluoride to oxide are about $4 per kilogram," Il and estimates provided by Cogema to Louisiana Energy Services (LES). 4/ Disposal costs of approximately $1 per kilogram of U 0 are bawd on NRC recommendations. 5/
3 3 and a report prepared by hlartin41arietta for DOE. f2 Transportation costs are estimated to be approximately
/
$.27 per kilogram based on an LES estimate previously provided to the NRC. 2/ USEC has reviewed these prior estimates of the costs associated with each phase of the disposition process, and has concluded that these estimates are reasonable. Therefore, the total unit cost for the disposition of depleted uranium through the end of fiscal year 1999 is estimated to be approximately $5.27 per kilogram of depleted uranium. When escalated for inflation through the end of fiscal year 1999, the cost per kilogram is estimated to be $5.75.
Based on the above, USEC's projected liability on the date of privatization for the ultimate disposition of depleted uranium generated by its Portsmouth operations for the first fiscal year of privatization is estimated to be: 2.760 million kilograms of depleted uranium X $5.75 per kilogram = $15.9 million.
4.0 REVIEW AND ADJUST 51ENT OF DECOSIAIISSIONING COSTS AND FUNDING LEVELS USEC will review the deconunissioning cost estimates and associated tunding levels over the duration of the lease and adjust them when necessary. These adjustments will take into account such factors as changes in volume and cost estimates, inflation, changes in plant conditions, and changes in 3/
Letter from the NRC to LES dated June 18, 1993.
4/
Letter from LES to the NRC dated June 30,1993.
5/
Letter from the NRC to LES dated June 18, 1993.
6/
"The Ultimate Disposition of Depleted Uranium," December 1990.
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Letter from LES to the NRC dated June 30,1993.
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..__.__._.-._________________________.___._____._______-____w
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DFP-PORTS July 28,1998 Rev.22 expected decontamination and decommissioning procedures. USEC will conduct such reviews in July of each I
year.
5.0 DECOMMISSIONING FUNDING
MECHANISM l
USEC utilizes payment surety bond (s) and standby trust agreement (s) to ensure tha: sufficient funds l
will be available for waste disposal, depleted uranium disposition, and decontamination and decommissioning of the Portsmouth facility as set forth in this Program Description. The instruments closely adhere to the recommended wording for such instruments set forth in NRC Regulatory Guide 3.66, " Standard Format on and Content of Financial Assurance Mechanisms Required for Decommissioning under 10 CFR Parts 30,40,70, and 72" (June 1990). While non-executed versions are included in this plan, the executed documents have been submitted to the NRC for review.
6.0 SECTION DELETED l
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I SFA-1
DFP-PORTS July 28,1998 Rev.22-PAYMENT SURETY BOND - NON-EXECUTED VERSION l
f -
Date bond executed:
Effective date:
Principal:
United States Enrichment Corporation 6903 Rockledge Drive Bethesda, MD 20817 Type of organization:
Delaware Chartered Corporation NRC certificate of compliance number: GDP-1 and GDP-2
-Name and address of facilities:
Paducah Gaseous Diffusion Plant Portsmouth Gaseous Diffusion Plant Amount (s) for decommissioning activity guaranteed by this bond:
Estimated at $55.500.000 Surety (ies) Inames(s) and business address (esil Type of organization:
finsert "oroorietorshin." "ioint venture " "nartnershin or "corocration"1 a
State ofincorporation:
(if applicable)
Surety's qualification in jurisdiction where facility is located.
Surety's bond number:
Total penal sum of bond: $
Know all persons by these presents, That we, the Principal and Surety (ies) heteto, are firmly bound to the U.S. Nuclear Regulatory Commission (herein called NRC), in the above penal sum for the payment of which
- we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Sureties are corporations acting as co-sureties, we, the Sureties, bind ourselves ia such sum "joindy and severally" only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, joindy and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety; but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.
WHEREAS, the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 76, applicable to the Principal, which require that the holder of a PSB-1
l DFP-PORTS July 28,1998 l
Rev.22 i
certificate of compliance for a gaseous diffusion plant, or an applicant for a certificate of compliance for such a facility provide financial assurance that funds will be available when needed for those aspects of the ultimate disposal of waste and disposition of depleted uranium, decontamination and decommissioning of such a facility which are the financial responsibility of such holder or applicant (collectively, " decommissioning);
l l
NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall faithfully, before the l
beginning of decommissioning of each facility identified above, fund the standby trust fund in the amount (s) l identified above for the facility; Or, if the Principal shall fund the standby trust fund in such amount (s) after an order to begin facility l
decommissioning is issued by the NRC or a U.S. district court or other court of competent jurisdiction; l
Or, if the Principal shall provide alternative financial assurance and obtain the written approval of the NRC of such assurance, within 30 days after the date a notice of cancellation from the Surety (ies) is received by both the Principal and the NRC, then this obligation shall be null and void; otherwise it is to remain in full force l
and effect.
l The Surety (ies) shall become liable on this bond obligation only when the Principal has failed to fulfill the conditions described above. Upon notification by the NRC that the Principal has failed to perform as guaranteed by this bond, the Surety (ies) shall place funds in the amount guaranteed for the facility (ies) into the standby trust fund established by the Principal with Iname of trustee] pursuant to the Standby Trust Agreement dated [ daig].
The liability of the Surety (ies) shall not be discharged by any payment or succession of payments hereunder, l
unless and until such payment or payments shall amount in the aggregate to the penal sum of the bond, but in no event shall the obligation of the Surety (ies) hereunder exceed the amount of said penal sum.
The Surety (ies) may cancel the bond by sending notice of cancellation by certified mail to the Principal and l
to the NRC provided, however, that cancellation shall not occur during the 90 days beginning on the date of receipt of the notice of cancellation by both the Principal and the NRC, as evidenced by the return receipts.
l The Principal may terminate this bond by sending written notice to the NRC and to Surety (ies) 90 days prior
[
to the proposed date of termination, provided, however, that no such notice shall become effective until the Surety (ies) receive (s) written authorization for termination of the bond from the NRC.
1 The Principal and Surety (ies) hereby agree to adjust the penal sum of the bond yearly so the the amounts guaranteed hereby, plus the value of the government securities deposited in an external sinking fund by the i
Principal, are sufficient to meet the Principal's funding obligation with respect to decommissioning of the facility pursuant to the Decommissioning Funding Program established by Principal; provided that the penal l
sum does not increase by more than 20 percent in any one year, and no decrease in the penal sum takes place without the written permission of the NRC.
If any part of this agreement is invalid, it shall not affect the remaining provisions which will remain valid and enforceable.
PSB-2
DFP-PORTS July 28,1998 Rev.22 in Witness Whereof, the Principal ana Surety (ies) have executed this financial guarantee bond and have affixed L
their seals on the date set forth above.'
[.
The persons whose signatures appear below hereby certify that they are authorized to execute this surety bond on behalf of the Principal and Surety (ies).
Principal:
United States Enrichment Corporation
[Sienature(sil
[Name(s)]
[Iltk(11]
[Corocrae Sca))
Corporate Surety (ies)
[Name and address]
State of incorporation:
Liability limit: $
[ Signature (s)]
1
[ Names (s) and title (s)]
[Corocrate Seal]
[ror every co-surety, provide signature (s), corporate seal, and other information in the same manner as for Surety (ies) above.]
Bond premium: $
PSB-3 m
.- DFP-PORTS July 28,1998 Rev.22 i
STANDBY TRUST AGREEAIENT - NON-EXECUTED VERSION TRUST AGREEMENT, the Agreement entered into as of [dmg] by and between the United States Enrichment Corporation, a Delaware chartered corporation, herein referred to as the " Grantor," and Iname and address of a national bank or other Trustee accentable to the U.S. Nuclear Reculatory Commission], the " Trustee."
WHEREAS, the U.S. Nuclear Regulatory Commission (NRC), an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, add the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Part 76. These regulations, applicable to the Grantor, require that a holder of, or an applicant for, a Part 76, certificate of compliance provide assurance that funds will be available when needed for required decommissioning activities.
WHEREAS, the Grantor has elected to use a surety bond to provide part of such financial assurance for the facilities identified herein; and WHEREAS, when payment is made under a surety bond this standby trust shall be used for the receipt of such payment; and WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee, NOW, THEREFORE, the Grantor and the Trustee agree as follows:
Section 1. Definitions. As used in this Agreemetit:
(a)
The term " Decommissioning" taeans those aspects of the ultimate disposal of waste and disposition of depleted uranium, decontamination and decommissioning of the Paducah and Portsmouth Gaseous Diffusion Plan: (GDPs) which are the financial responsibility of the Grantor.
(b)
The term " Grantor" means the United States Enrichment Corporation and any successors or assigns thereof.
(c)
The term " Trustee" means the trustee who enters into this Agreement and any successor Trustee.
Section 2. Costs of Decommissioning. This Agreement pertains to the costs of decommissioning the materials and activities identified in Certificate of Compliance Number GDP-1 and GDP-2 issued pursuant to 10 CFR Part 76.
Section 3. Establishment of Fund. The Grantor and the Trustee hereby establish a standby trust fund (the j
Fund) for the benefit of the NRC. The Grantor and the Trustee intend that no third party have access to the Fund except as provided herein.
l Section 4. Paymen(s Constituting the Fund. Payments made to the Trustee for the Fund shall consist of cash, j
securities, or other liquid assets acceptable to the Trustee. The Fund is established initially as consisting of the property which is acceptable to the Trustee, described in Schedule B attached hereto. Such property and STA-1 I
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I July 28,199d' l
DFP-PORTS Rev.22 any other property subsequently transferred to the Trustee are referred to as the " Fund," together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of the Fund, nor any duty to collect from the Grantor, any payments necessary to d!scharge any liabilities of the Grantor established by the NRC.
l Section 5. Payment for Reauired Activities Snecified in the Plan. The Trustee shall make payments from the Fund to the Grantor upon presentation to the trustee of the following:
- a. A certificate duly executed by the Secre.tary of the Grantor attesting to the occurrence of the events, and in the form set forth in the attached Specimen Certificate, and
- b. A certificate attesting to the following conditions:
(1) that decommissioning is proceeding pursuant to an NRC-approved plan.
(2) that the funds withdrawn will be expended for activities undertaken pursuant to that Plan, and (3) that the NRC has been given 30 days' prior notice of the Grantor's intent to withdraw funds from the escrow fund.
No withdrawal from the fund can exceed 10 percent of the outstanding balance of the Fund unless NRC approval is attached.
In the event of the Grantor's default or inability to direct decommissioning activities, the Trustee shall make payments from the Fund as the NRC shall direct, in writing, to provide for the payment of the costs of required activities covered by this Agreement. The Trustee shall reimburse the Grantor, or other persons as specified by the NRC, from the Fund for expenditures for required activities in such amount as the NRC shall direct in writing. In addition, the Trustee shall refund to the Grantor such amounts as the NRC specifies in writing. Upon refund, such fur.ds shall no longer constitute part of the Fund as defined herein.
Section 6. Trust Management. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of this section. In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the beneficiary and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; exceot that:
(a)
Securities or other obligadons of the Grantor, or any other owner or operator of the facilities, or any of their affiliates as defined in the investment Company Act of 1940, as STA-2
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DFP-PORTS July 20,1993 Rev.22 amended (15 U.S.C. 80a-2(a)), shall not be acquired or held, unless they are securities or other obligations of the Fedual or a State government; (b)
The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to the extent insured by an agency of the Federal Government, and in obligations of the Federal Government, and in obligations of the Federal Government such as GNMA, FNMA, and FHLM bonds and certificates or State and Municipal bonds rated 'BBB or higher by Standard and Poor's or Baa or higher by Moody's Investment Services; and (c)
For a reasonable time, not to exceed 60 days, the Trustee is authorized to hold uninvested cash, awaiting investment or distribution, without liability for the payment of interest thereon.
Section 7. Commincline and Investment. The Trustee is expressly authorized in its discretion:
(a)
To transfer from time to time any or all of the assets of the fund to any common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate,
{
subject to all of the provisions thereof, to be commingled with the assets of other trusts participating therein; and (b)
To purchase shares in any investment company registered under the Investment Company Act of 1940(15 U.S.C. 80a-1 et seq.), including one that may be created, managed, underwritten, or to which investment advice is rendered, or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.
Section 8. Express Powers of Trustee. Without in any way limiting the powers and discretion conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:
(a)
To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale, as necessary to allow duly authorized withdrawals at the joint request of the Grantor and the NRC or to reinvest in securities at the direction of the Grantor; (b)
To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; (c)
To register any securities held in the Fund in its own name, or in the name of a nominee, and to hold any security in bearer form or in book entry, or to combine certificates representing such securities with certificates of the same issue held by the Trustee in other fiduciary capacities, to reinvest interest payments and funds from matured and redeemed instruments, to file proper forms l
concerning securities held in the Fund in a timely fashion with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even through, l
where so deposited, such securities may be merged and held in bulk in the name of the nominee or such depository with other l
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July 28,1998[
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DFP-PORTS Rev.22 securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the U.S. Government, or any agency or instrumentality thereof, with a Federal Reserve bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; (d)
To deposit any cash in the Fund in interesting-bearing accounts maintained or savings certificates issued by the Trustee, in its separate corporate capacity, or in any other banking institution affiliated with the Trustee, to the extent insured by an agency of the Federal government; and (e)
To compromise or otherwise adjust all claims in favor of or against the Fund.
Section 9. Taxes and Exnenses. All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage conunissions incurred by the Fund shall be paid from the Fund. All other expenses incurred by the Trustee in connection with the administration of this Trust, including fees for legal services rendered to the trustee, the compensation of the trustee to the extent not paid directly by the Grantor, and all other proper charges and disbursements of the Trustee shall be paid from the Fund.
Section 10. Annual Valuation After payment has been made into this standby trust fund, the Trustee shall annually, at least 30 days before the anniversary date of receipt of payment into the standby trust fund, furnish to the Grantor and to the NRC a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. The failure of the Grantor to object in writing to the trustee within 90 days after the statement has been furnished to the Grantor and the NRC, shall constimte a conclusively binding assent by the Grantor, barring the Grantor from asserting any claim or liability against the Trustee with respect to the matters disclosed in the statement.
Section it Advice of Counsel. The trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the enent permitted by law, in acting on the advice of counsel.
Section 12. Trustee comoensatiom The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing with the Grantor. (See Schedule C.)
Section 13. Successor Trustee. Upon 90 days notice to the NRC, the Trustee may resign; upon 90 days notice to NRC and the Trustee, the Grantor may replace the Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a successor Trustee and this successor accepts the appointment.
The successor Trustee shall have the same powers and duties as those conferred upon the Trustee hereunder.
Upon the successor Trustee's acceptance of the appointment, the trustee shall assign, transf er, and pay over to the successor Trustee the funds and properties then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee or for instructions. The successor Trustee shall specify the date on which it assumes administration of the trust in writing sent to the Grantor, the NRC, and the present Trustee by certified maii 10 days before such changes become effective. Any expenses STA-4
DFP-PORTS July 28,1998 Rev.22 l
incurred by the Trustee as a result of any of the acts contemplated by this section shall be paid as provided in Section 9.
l Section 14. Instructions to the Trustee. All orders, requests, and imtructions by the Grantor to the Trustee l
shall be in writing, signed by such persons as are signatories to this agreement or such other designees as the l
Grantor may designate in writing. The Trustee shall be fully protected in acting without inquiry in accordance with the grantor's orders, requests, and instructions. If the NRC issues orders, requests, or mstructions to the 1
l Trustee these shall be in writing, signed by the NRC, or its designees, and the Trustee shall act and shall be l
fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the j
right to assume, in the absence of written notice to the contrary, that no event constituting a change or a l
termination of the authority of any person to act on behalf of the Grantor, or the NRC, hereunder has l
occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instruction from the Grantor and/or the NRC, except as provided for herein.
Section 11 Amendment of Agreement. This Agreement may be amended by an instrument in writing executed by the Grantor, the Trustee and the NRC, or by the Trustee and the NRC, if the Grantor ceases to l
exist.
Section 16. Irrevocability and Terminatmn. Subject to the right of the parties to amend this Agreement as i
provided in Section 15, this trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee, and the NRC, or by the Trustee and the NRC, if the Grantor ceases l
to exist Upon termination of the trust, all remaining trust property, less final trust administration expenses, shall be delivered to the Grantor or its successor.
?
i Section 17. Immunity and Indemnification. The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this trust, or in carrying out any directions by the Grantor, or the NRC, issued in accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from the trust fund, or both, from and against any personal l
liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, l
including all expenses reasonably inct.rred in its defense in the event the Grantor fails to provide such defense.
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Section 18. This Agreement shdi be administered, construed, and enforced according to the laws of the l
United States.
l Section 19. Interpretation and Severability. As used in this Agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each section of this Agreement j
shall not affect the interpretation or the legal efficacy of this Agreement. If any part of this agreement is l
mvalid, it shall not affect the remaining provisions which will remain valid and enforceable.
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DFP-PORTS July 28,1998
[
Rev.22 IN WITNESS WHEREOF the parties have caused this Agreement to be executed by the respective officers duly authorized and the incorporate seals to be hereunto affixed and attested as of the date first written above.
ATTEST:
[ Insert name of Grantor]
[ Signature of representative of Grantor)
[Titic]
[ Title]
[ Seal]
[ Insert name of Trustee]
[ Signature of representative of Trustee)
[ Title]
ATTEST:
[ Title]
[ Seal]
ATTEST:
[ Insert name of Grantor]
[ Signature of representative of Grantor]
[ Title]
[ Title]
[ Seal]
[ Insert name of Trustee]
[ Signature of representative of Trustee]
[ Title]
ATTEST:
[ Title]
[ Seal]
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