ML080110440

Presentation Slides from January 8, 2008, Meeting with Exelon and Energysolutions Regarding Decommissioning of Zion Nuclear Power Station

ML080110440
Person / Time
Site:	Zion  File:ZionSolutions icon.png
Issue date:	01/08/2008
From:	Christian J, O'Neill T EnergySolutions, Exelon Nuclear
To:	NRC/FSME
References
Download: ML080110440 (42)

Text

I Zion Nuclear Power.Station Exekrin. Project Greenfield ' ENERGYSoLUTioNS Decommis~sioning of Zion Nuclear Power Station January 8, 2008 Thomas O'Neill Vice President, New Plant

,Development, Exelon Nuclear John Christian President, Commercial Services Group, EnergySolutions Presentation to NRC1Jaur8,20 1 January 8, 2008

Zion Nuclear Power Station Exeken. Project Greenfield ENERGYSOLUTIONS Agenda

1. Introductions 1I. Purpose of the Meeting

• Thomas O'Neill, Exelon Nuclear Ill. Current Exelon Approach

• Patrick Simpson, Exelon Nuclear IV. Overview of the Agreement

• John Christian, EnergySolutions V. Approach and Technical Qualifications

• Patrick Daly, Zion Solutions VI. Financial Assurance

• Thomas Magette, EnergySolutions Presentation to. NRC 2Jnay8,20 2 January 8, 2008

Zion Nuclear Power Station

.Exekrn. Project Greenfield ENERGYSoLuIoNS

11. Purpose of the Meeting Thomas O'Neill Vice President, New Plant Development, Exelon Nuclear Presentation to NRC3Jaur8,20 3 January 8, 2008

Zion Nuclear Power Station Exekmin. Project Greenfield ENERGYSoLUTIONS

• Communicate intent to commence decommissioning of ZNPS earlier than

• previously planned

• Describe the approach and benefits of license transfer to Zion Solutions

• Overview .of the post-transfer organization and qualifications

• Discuss project schedule Presentation to NRC4Jaur8,20 4 January 8, 2008

0 Zion Nuclear Power Station ExeIlen. Project Greenfield ENERGYSOLUTIONS

• Public Outreach

- Local Stakeholders 9 Zion Community 9 Lake'County

- Regulatory Stakeholders

" NRC Region 3

" State of Illinois

- Media Presentation to NRC5Jaur8,20 5 January 8, 2008

Zion Nuclear Power Station Exek~n. Project Greenfield ENERGYSOLUTIONS Ill. Current Exelon Approach Patrick Simpson Licensing Manager, Exelon Nuclear Presentation to NRC6Jaur8,20 6 January 8, 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSoLUTioNS

• Zion - two essentially identical pressurized water reactors with, supporting facilities

• NRC licensed both units to operate in 1973

• Decision to permanently shutdown

-January 1998

-Based on economic analysis

-Permanent shutdown certified to NRC

• Plant no longer authorized to operate

• Licenses remain in effect until terminated by NRC Presentation to NRC7Jaur8,20 7 January 8, 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSOLUTIONS

• Post-Shutdown Decommissioning Activities Report submitted Febru ary 14, 2000

• Plant decommissioning divided into five periods

- SAFSTOR preparations - complete

- SAFSTOR dormancy - o-ngoi~ng

" All spent fuel stored inspent fuel pool

• Spent Fuel Nuclear Island

" Converted main generators to synchronous condensers

- Preparations for decontamination and dismantlement begin 2013

- Decommissioning operations begin 2015

• SFNI remains operational until spent fuel removed by DOE

" License termination activities 2024 to 2026

- Site restoration scheduled for completion in 2ý028 Presentation -to NRC8Jaur8,20 8 January 8, 2008

Zion Nuclear Power Station Exelein. Project Greenfield ENERGYSoLUToNS

• Exelon's estimate of decommissioning costs through site restoration is approximately

$1)138M (2008$)

• Fund balance as of December 2007 is approximately $912M Presentation to NRC9Jaur8,20 9 January 8, 2008

Zion Nuclear Power'Station Exelin. Project Greenfield ENERGYSOLUTIONS IV. Overview of the Agreement John Christian President, Commercial Services, EnergySolutions and President, Zion Solutions' Presentation to NRC 1 10 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSOLUTIONS Pre-planning contract signed July 29, 2007

- Engineering studies for ISESI, security, environmental, and temporary power completed in December 2007

- Characterization of reactor vessels to be completed February 2008

-Pre-mobilization activities in 2008 include

" Key perso nnel

• Procedure development

• Rail spur upgrade

• Continuation of site characterization

" Baseline validation and site walk downs

• Formal asset sale agreement signed December 11, 2007

• Closing

- Expected by 3rd or 4th quarter 2008

- Follows receipt of necessary regulatory approvals, including NRC approval of license transfer Presentation to NRC 11 1 January aur 8,,20 2008

Zion Nuclear -Power Station Exelein. Project'Greenfield ENERGYSoLUTON

• Zion Solutions Acquire the assets of ZNPS

-Lease the land from Exelon

-Take possession of used nuclear fuel

-Become the licensee forZNPS

- Assume full responsibility for licensed activities

- Assume all liabilities and obligations for radiological decommissioning and site restoration

• Exelon will retain title to

- Real estate and certain improvements

- Used nuclear fuel

- Greater than Class C (GTCC) waste Presentation to NRC 1 12 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSoLuIoNS Used Nuclear Fuel

- Exelon's ownership of and title to is authorized pursuant to general licenses granted in 10 CFR 31.9, 40.21 & 70.20

- Exelon has a Standard Contract with DOE for disposall of used nuclear fuel

• Contract subject to a fleet-wide settlement

• Partial assignment would be problematic

" Under NWPA, Standard Contract rights are expected to flow with title, e.g., 42 U.S.C. 10222(b)(4)

- Zion Solutions does not require a Standard, Contract per 42 U.S.C. 10222(b)(1)(A), because it is not authorized to use any fuel in the reactor Presentation to NRC 1 13 aur 8,,20 January 21008

Zion Nuclear Power Station Exeken. Project Greenfield ENERGYSOLUTIONS License Transfer Application

- Exelon. and Zion Solutions to submit inJanuary 2008

- Application for transfer of 10 CFR Part 50 licenses

- Include updated decommissioning cost estimate summary

• Submit Amended PSDAR

- PSDAR to reflect Zion Solutions approach

- Submit by end of February 2008

- Effective upon transfer of ZNPS to Zion Solutions

- Include Spent Fuel Management Plan Presentation to NRC 1 14 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSOLUTIONS

• Technical Qualifications

- EnergySolutions core competence - key personnel -and

.experience

- Incumbent Zion employees

- Sargent & Lundy, Zion Architect Engineer

- Site security contractor

• Financial Assurance

- Nuclear Decommissioning Trust Fund

- Performance guarantee

- $200 million Letter of Credit

- LLW disposal capacity asset Presentation to NRC 1 15 January aur 8,,20 2008

Zion Nuclear Power Station Exelis~n. IProject Greenfield ENERGYSoLUTON Zion Solutions, LLC Organization Chart

[EnergySolutions, Inc. Board of Directors R. Steve Creamer, CEO &

I EnergySolutions, LLC Chairman Alan E. Goldberg Robert D. Lindsay Zion Solutions, LLC Lance L. Hirt Andrew S. Weinberg Jordan W. Clements Robert J. S. Roriston E. Gail de Planque David B. Winder J. J. Everest, 11 Presentation to NR C6Jaur8,20 16 January 8, 2008 ,

Zion Nuclear Power Station Exelem. Project Greenfield ENERGYSOLUTIONS V. Approach and Technical Qualifications Patrick Daly Vice President and General Manager, Zion Solutions Presentation to NRC 117 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSOLUTIONS Technical Approach

-Zion Solutions will

• Perform radiological decommissioning 0 Complete site restoration

• Build an onsite ISFSI

• Relocate the spent fuel and GTCC waste

• Maintain the ISFSI until license termination or transfer back to Exelon

• Support operation of the Synchronous Condenser as needed by Exelon

-ZionSolutions plans to complete work within 120 months

• Contract milestones and lease payments provide schedule incentives Presentation to NRC 1 18 aur 8,,20 January 2008

Zion Nuclear Power Station Exekon. Project Greenfield ENERGYSOLUTIONS Why pursue a different approach

-Zion Solutions assumes site control and responsibility.

-Leverages E~nergySolutions core competencies 0 Decommissioning 0 Waste disposal 9 Spent fuel management

-Minimizes delays and focuses accountability

-Eliminates future uncertainty associated with LLW disposal 0 Cost

• Access

-Provides addition al financial assurance beyond the tr'ust fund Presentation to NRC 1 19 aur 8,,20 January 2008

Zion Nuclear Power Station Exekrn. Project Greenfield ENERGYSOLUTIONS Why. the License'Transfer is beneficial-

-Earlier radiological decommissioning

-Expeditious reduction of source term material

-Decrease in risk of inadvertent release of contaminated material

-Earlier release of the restored site for beneficial reuse Presentation to NRC 2

20. aur~,20 January-8, 2008

Zion Nuclear Power Station Exekein, Project Greenfield ENERGYSoLUTioNS The biggest difference in approach is "Rip &Ship"

- Estimate of LLW.sent off site for disposal 4, TLG - 500 thousand cubic feet

• EnergySolutions - 6 million cubic feet

- Advantages

" Reduce duration of clean-up

" Minimize risk of inadvertent release of radiologically contaminated material

• Reduced costs for decontamination (e.g., chasing joints and cracks)

" Reduced costs of extensive free release program for equipment and debris

" Schedule and cost savings related with volume reduction of LLW

- Size for transportation on site

- Size for disposal off site Presentation to NRC 2 21 aur 8,,20 January 2008

Zion Nuclear Power Station Exekrin. Project Greenfield ENERGYSoLuTiONS Source term removal with-in radiologically controlled

.areas

- Minimize survey and surgical removal,

- Utilize large capacity gondola rail cars to move LLW to Olive

-Release plan using MARSSIM guidance

" Affected -systems/builId ings - ship to Clive

" Unaffected systems/buildings - release

• Remove structures to a minimum of 3,fee~t below grade

• Partial site release for unrestricted use

- Based on Final Status Surveys and NRC verification

- Requires license amendment to meet the end state Presentation to NRC 2 22 aur 8,,20 January 2008

Zion Nuclear Power Station Exeli~n. Project Greenfield ENERGYSoLUToNS Source Term Removal - Containment Buildings

- Remove Reactor Vessel internals

- Package GTCC waste for storage

-Disposition Class B&C waste

-Remove and ship for disposal

• All large components - SGs, Pressurizers, RVs, RCPs (Critical path)

• Refueling cavity liner

• Biological shield

• Drains

• Remaining primary system components

-. Remove polar crane and, concrete to a point that the inside of containment can be released for demolition Presentation to NRC 2 23 aur 8,,20 January 2008

Zion Nuclear Power Station Exek~n. Project Greenfield ENERGYSOLUTIONS Source Term Removal - AuxIFue-l Building

-Place all spent fuel and GTCC waste in an approved ISESI

-Remove and dispose

" Contaminated systems and tanks from the Aux building

" Fuel racks, pooi liner, and associated equipme nt within the fuel building

" Drains and sumps

.* Embedded piping

- Hold up tanks removed during demolition

- Demolish building to basement level

" Building debris sent to Olive

" Survey

" Backfill Presentation to NRC 224 aur 8,,20 January 2008

Zion Nuclear Power Station Exekmin, Project Greenfield ENERGYSOLUTIONS Source Term Red~uction - Balance of Plant

- Secondary system considered impacted due-to' previous Steam Generator tube leaks

- Remove secondary system for disposal at Clive 0 Major components 0 Outside tanks, storage facilities that are considered impacted

• Water treatment drying beds and concrete 0 Contaminated Soil

- Release for clean disposal or recycle

• Components that can be surveyed without impacting critical path 0 Non-contaminated equipment Presentation to NRC 2 25 aur 8,,20 January 2008

Zion Nuclear Power Station Exeknh. Project Greenfield ENERGYSOLUTIONS

.Non-Rad Materials and Areas

- Remove' hazardous materials such as asbestos, light ballasts, PCB's, Hg switches, and snubber oil before removal of components or demolition

- Survey areas per MARSSIM plan

- Pulverize for backfill 9 Clean concrete-

• Balance-of plant

• Outside of contain ments Clean C components with scrap value will be evaluated for salvage (not to impact critical path)

Presentation to NRC 2 26 aur 8,,20

.January 2008

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Presentation to NRC 27 January 8, 2008

Zion Nuclear Power Station Exeken. Project Greenfield ENERGYSoLUToNS Project Organization ZionSolutions LLC-Restoration Project December 2007 Deut Gneal Deputy Genera? Project Controls Maagror Manager for and Reporting D&D,

. and Engineering and Mage Construction OperationsJefel RickyMilesMark Steele Const' ction. Plant Operations

-D&D,large Manager, Ron component Schuster removal, (Stio demolition, Incumbent raintenance. site Manger) restoration, D&D work control W

Pa.ste Operaions Tý Presentation to NRC 2 28 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSoLUToNS Project Organization

-Upon licens'e transfer Zion Solutions assumes full responsibility for and control over the ZNPS

- Current Exelon employees remain supporting maintenance of the license conditions, synchronous condenser, and switchya rd

- S ecurity contract assigned to Zion Solutions

- Zion Solutions will adopt the existing QA, emergency preparedness, training, and security procedures

- Establish these functions at the ZNPS using project and incumbent personnel Presentation to NRC 2 29 aur 8,,20 January 2008

Zion Nuclear Power Station Exekon. Project Greenfield ENERGYSOLUTIONS EnergySolutions Preliminary Uln-escalated Cost Estimate Summary

($ Millions)

Amount Expended Through 2006 $42.0 Exelon 2007 - 2008 Fuel Storage Costs $21.0 Exelon Fund Retainage $25.0 Exelon Tax Liability Retainage $11.0 Preliminary Planning $12.4 Dismantlement Activities Decontamination $4.3 Rem oval- $131.9 Transportation & Disposal $169.7 Project Staffing $198.4 Materials and Equipment $29.6 Insurance and Regulatory Fees $2.7 Other Decommissioning Costs' $88.5 Total Dismantlement Costs $625.1

$736.6 Spent Fuel Storage $201.5 Site Restoration $51.6 Total Decommissioning Costs $989.6 Based on 2007 Dollars Presentation to NRC 3 30 aur 8,,20 January 2008

Zion Nuclear Power Station Exekmin. Project, Greenfield ENERGYSOLUTIONS Project. Controls

- Based on lessons learned from past D&D projects

- Baseline project controls tied to financial reporting systems to track costs to specific WBS elements

- Report monthly on cost and schedule* variances plus earned value

- Manage cash flow to baseline

" Ensure the trust fund has adequate funds to cover estimate to complete

" Requires reporting back to Exelon

-Accountability reviews by corporate and external stakeholders including Exelon Presentation to NRC 3 31 aur 8,,20 January 2008

Zion Nuclear Power Station E~xeko,n Project Greenfield ENERGYSOLUTIONS Technical -Qualifications -Decommissioning

-Turnkey facility D&D, including source removal experience

-Reactor D&D experience "Research reactors "Commercial reactors

-ETTP

• Largest D&D project inDOE

-Rocky Flats

• Proof of Rip and Ship approach

• 2000 rail cars (6.8M cu ft) in2005 Presentation to NRC 3 32 aur 8,,20 January 2008

Zion Nuclear Power Station Exekrin. Project Greenfield ENERGYSOLUTIONS Reactor -Decommissioning

-Key personnel with current expertise in the range of reactor types

• PWRs

• BWRs

• Magnox Reactors

• Gas-Cooled Reactors

• Research Reactors

-Prompt decommissioning

- SAFSTOR (prompt and deferred)

- License termination

- Range of clients

• 22 Magnox Reactors (UK)

• Big Rock Point

• Connecticut Yankee

• Maine Yankee

• Fort St. Vrain

• La Crosse

• Trojan LZ

• Rancho Seco

• Fermil1 Presentation to NRC 3 33 aur 8,,20 January 2008

Zion Nuclear Power Station Exek~n. Project Greenfield ENERGYSOLUTIONS Big Rock Point.

- Commercial reactor, D&D

- Major component removal opReactor vessel/internals "Reactor building com ponents "Other major components

- Building D&D

- Waste disposition

- Project highlights "Removed reactor vessel intact "Dry Fuel Storage

• Design

- Licensing_

• Manufacturing Presentation to NRC 3 34 aur 8,,20 January 2008

Zion. Nuclear Power Station Exekein. Project Greenfield ENERGYSoLUToNS ETTP 3-Building D&D Project

- Largest completed D&D project in.DOE

- Used 1400 fully-cleared workers

- Unparalleled D&D productivity

-Dispositioned 360 million lbs of contaminated material

• 400 miles of piping ý

• 44 miles of electrical conduit removed without incident

- 11,000 heavy lifts without incident

- Removed 3M lbs/week of material

- Operated world'slagsnuer &

workshop lags'ncerM&

Presentation to NRC 3 35 aur 8,,20 January 2008

Zion Nuclear Power Station Exekein. Project Greenfield ENERGYSoLUTioNS Technical Qualifications--,Spent Fuel Management

- Development and licensing of technologies for storage, transport and disposal of Spent Nuclear Fuel (SN F)

- Procurement, fabrication and operation of cask systems for SNF and High Level Waste (HLW)

- Design, construction and operation of facilities for the management of SNF and HLW

- Specialized technical services: structural, shielding, criticality,-

thermal, civil, materials and welding, proc'urement, fabrication,

-quality Extensive experience in loading dry cask storage systems Presentation to NRC 3 36 aur 8,,20 January 2008

Zion Nuclear Power Station Exelein. Project Greenfield ENERGYSoLUToNS VI, Financial Assurance Th~omas Magette Senior Vice President, Commercial Services, EnergySolutions Presentation to NRC 3 37 aur 8,,20 January 2008

Zion Nuclear Power Station Exekrin. Project Greenfield ENERGYSOLUTIONS Financial Assurance

- Provided from a combination of sources

• Zion Nuclear Decommissioning Trust Funds (NDT)

• Performance' Guarantee

• $200M Letter of Credit

• LLW disposal capacity asset (Back-up NDT)

- NDT assets satisfy regulatory requirements and guidelines e 10 CFR 50.33(f)(2)

• 10 CFR 50.75(e)(1)(i)

• NUREG-1577 Presentation to NRC 3 38 aur 8,,20 January 2008

Zion Nuclear Power Station Exekrn. Project Greenfield ENERGYSOLUTIONS Nuclear Decommissioning Trust Fund

-Qualified and Non-Qualified Funds

-Exceptions

• Operating funds and expenses for SAFSTOR, including taxes

• $25M (Non-Qualified) for potential future liabilities

-NDT sufficient to fund decommissioning

" Accounting for future earnings

• EnergySolutions updated cost estimate

" Includes cost of dry fuel storage

-Updated cost estimate

• Expected value of funds available - -$900-950

• Updated decommissioning estimate - - $990 0 Difference covered by fund growth via -earnings during the decommissioning period Presentation to NRC 3 39 aur 8,,20 January 2008

Zion Nuclear Power Station ExekIejn. Project Greenfield ENERGYSoLuTioNS Performance Guarantee

- Provided to Exelon for all obligations of EnergySolutions' subsidiary - Zion Solutions, LLC

- EnergySolutions' equity interest in,Zion Solutions, LLC pledged as collateral

- Default under the Asset Sale Agreement

• Exelon will have the right to take possession of the subsidiary and the Back-up NDT

" Zion Solutions, LLC structured to provide protection agai-nst EnergySolutions bankruptcy (non-consolidation)

- One Zion Solutions Director appointe~d by Exelon

- Unanimous vote requirement for a voluntary bankruptcy filing Presentation to NRC 4 40 aur 8,,20 January 2008

Zion Nuclear Pow'er Station Exekrin. Project Greenfield ENERGYSOLUTIONS Letter of Credit

- Amount of $200 million

- Issued by third party Financial Institution with strong credit quality

- Payable to Back-up NIDT

- Exelon will monitor and enforce rights as.

beneficiary Presentation to NRC 4 41 aur 8,,20 January 2008

Exek~nZion Project NuclearGreenfield Powe'r Station ENERGYSoLUToNS LLW Disposal Capacity Asset

-Covers disposal of all Class A LLW -from ZNPS at EnergySolutions' Olive, -UT facility

-Held by Back-up NDT e Special purpose easement (legal instrument) 9 Dedicated to decommissioning e Protected from other creditors or obligations of ZionSolutions and'EnergySolutions Presentation to NRC 4 42 aur 8,,20 January 2008